New York, New York--(Newsfile Corp. - May 29, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into The Gap, Inc. ("The Gap, Inc.") (NYSE:GAP) concerning potential violations of the federal securities laws.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you suffered a loss on your The Gap, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299469
Gap Inc. reported 1% Q1 revenue growth to $3.5 billion, missing Wall Street estimates, while Old Navy comparable sales came in at just 1% versus the 3% analysts expected -- shares fell over 15% in a single session.
, /PRNewswire/ -- Investors who held Gap Inc. (NYSE: GAP) shares lost more than 15% of their investment on May 28-29, 2026, after the company reported Q1 FY2026 revenue of $3.5 billion -- up 1% year-over-year and below analyst expectations. Shareholders who lost money on GAP are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you purchased Gap Inc. shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the GAP Investigation
Q: Who is eligible to participate in the GAP investigation?A: Investors who purchased GAP stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did GAP stock drop?A: Shares fell more than 15% after the company reported Q1 revenue that missed analyst estimates as management highlighted a slower start to the year and cut its full-year sales outlook. Investors who purchased shares at higher prices may be entitled to recovery.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Gap Inc. made materially false or misleading statements regarding its revenue outlook, brand-level performance trends, and inventory challenges. When actual Q1 results and a lowered full-year revenue forecast were disclosed, the stock price declined sharply.
Q: What do GAP investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my GAP shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought GAP and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions.
Gap Inc CEO Richard Dickson said the turnaround at Athleta is taking longer than expected, but the retailer remains committed to rebuilding the struggling activewear brand.
"Athleta is an important brand in the portfolio," Dickson said on CNBC's "Mad Money" on Friday. "We are in the rebuild year."
On Thursday, Gap reported weaker-than-expected results for Athleta, where first-quarter sales fell 12% to $270 million and comparable sales declined 11%. On the company's earnings call, management described Athleta as a "slower rebuild," warning second-quarter trends are expected to remain similar to the first quarter. Athleta's comp sales also were down 10% and 11% in the fourth and third quarters of last fiscal year, reflecting its challenges.
Athleta's woes aren't the only problem facing Gap right now.
Shares of the retailer plunged 17% Friday after weakness at Old Navy — Gap's largest brand by revenue — overshadowed strength elsewhere in the portfolio. Old Navy posted 1% comparable sales growth in the quarter, below analyst expectations of 3%, as softer demand in seasonal categories like dresses weighed on results and prompted Gap to lower its full-year sales outlook.
Still, Dickson said Gap sees a path to recovery for Athleta under the brand's CEO Maggie Gauger, who joined last August and has been leading an overhaul of the business. During the pandemic era, Athleta had been a buzzy growth driver for Gap, which also owns Old Navy and its namesake brand.
"She streamlined the assortment considerably, which is resulting in better [average unit retail], better margins, even with a challenging top line," Dickson said.
Gap has also reshaped leadership, improved creative execution and begun rolling out new merchandise that management believes is resonating better with shoppers.
"We've gotten some new merchandise in. It's checking really well," Dickson said. "It's small, they're early reads, but we do believe that this brand has strength to deliver."
Athleta, which ranks as the fifth-largest activewear brand in the category, remains an important long-term growth opportunity for Gap, according to Dickson.
"It's on us to prove that," Dickson said, adding that the company expects "slight improvement" in the second half of the year.
"We believe we'll continue to chip away at this and find the growth pattern for Athleta," he said.
Gap Inc. NYSE: GAP delivered a mixed first-quarter report Thursday after the bell, slightly missing Wall Street's earnings and revenue expectations for the second consecutive quarter while lowering its full-year sales outlook due to weaker-than-expected performance at its Old Navy brand.
Although the company, which is in the midst of a multiyear turnaround, raised its full-year earnings guidance, investors seemed more concerned about the slowing top-line growth, sending shares down about 17% following the report.
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Gap's Q1 Results Reflect Uneven Brand PerformanceGap reported adjusted diluted earnings per share (EPS) of 38 cents, down from 51 cents a year ago and a penny below Wall Street's expectations. Revenue rose to $3.5 billion, up 1% year over year, but fell roughly $28 million short of analyst estimates.
GAP Today
$21.92 +0.06 (+0.27%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$18.68▼
$29.36Dividend Yield3.19%
P/E Ratio8.63
Price Target$28.71
Comparable sales (comps) increased 2%, marking the retailer's ninth consecutive quarter of positive comp growth, while gross margin of 40.5% exceeded the company's guidance.
On the earnings call, CEO Richard Dickson acknowledged that performance was uneven across the company's portfolio during the quarter.
"Overall, at the company level, the quarter was in line with our expectations. However, results at the brand level were more varied, reflecting both the different stages of their transformation and some brand-specific dynamics," Dickson said.
Three of Gap's four brands posted positive year-over-year comps. Gap's namesake brand remained a standout performer, with comps rising 10% and extending its streak of positive comps to 10 consecutive quarters. Banana Republic also continued to gain traction, posting 2% comps growth and marking its fourth straight quarter of positive comps.
Old Navy, the company's largest brand, posted 1% comps growth but fell short of expectations due to a weaker-than-expected customer response to its seasonal dress assortment. Athleta remained a sore spot, with comps declining 11% as the brand continued working through legacy inventory and broader turnaround efforts.
Lower Sales Outlook Overshadows Higher EPS GuidanceThe weaker-than-expected performance at Old Navy prompted the company to lower its sales guidance, though it raised its EPS forecast to reflect favorable interest income, tax, and share-count assumptions.
Net sales are now expected to be up 1% to 2% year over year, down from the company's earlier guidance of 2% to 3%. Meanwhile, the company raised its adjusted EPS outlook to $2.30 to $2.40 per share, up from its earlier estimate of $2.20 to $2.35 per share.
The company also expects roughly $80 million in net tariff relief, though it is reserving about half to offset the potential impact of higher fuel costs and the remainder to respond to changes in the promotional and competitive environment.
Gap also issued guidance for the second quarter, expecting net sales to be flat to down 1% over the previous year, with gross margin flat to down 50 basis points.
Gap's Volatile Year Continues Following Earnings ReportInvestors were clearly disappointed with the report, sending shares sharply lower. The move added to what has already been a bumpy year for the stock as investors reacted to developments related to the retailer's turnaround efforts.
The Gap, Inc. (GAP) Price Chart for Friday, June, 12, 2026
Despite the volatile backdrop, investors responded positively to improving results across much of Gap's portfolio early in the year, sending shares to a 52-week high above $29 on Jan. 9. However, the stock tumbled more than 14% following the company's fourth-quarter earnings report in early March after results came in just shy of expectations.
The stock has struggled to regain momentum since then. Ahead of Thursday's report, shares were trading just under $25. Following the sell-off, they are now trading below $21. Over the last three months, shares have fallen roughly 25%, while the stock is down about 18% year to date.
Analysts Remain Optimistic Despite the PullbackWall Street has remained largely optimistic on Gap, though analyst sentiment has been somewhat mixed in recent months, and at least three analysts lowered their price target following the latest earnings report.
The stock carries a Moderate Buy consensus rating. Among the 18 analysts covering the company, 12 rate the stock a Buy, while six have Hold ratings. The average 12-month price target is just under $29, implying more than 35% upside from recent trading levels.
The recent pullback has also lowered Gap's valuation. Shares currently trade at about 10X earnings, below the broader retail industry average P/E ratio of around 17X. The stock's price-to-sales ratio of less than 0.5 is also well below the industry average of approximately 1.1.
Gap trades at a lower earnings multiple than American Eagle Outfitters Inc. NYSE: AEO, which carries a P/E ratio of around 14X, though above Abercrombie & Fitch Co.'s NYSE: ANF multiple of roughly 7X. On a price-to-sales basis, Gap trades slightly above American Eagle and modestly below Abercrombie, which just reported strong Q1 earnings.
Gap's latest quarter offered evidence that its turnaround remains on track, particularly at the namesake Gap brand. However, as it was a second consecutive earnings and revenue miss, combined with a lower sales forecast, the positives were overshadowed. Going forward, investors will be watching whether the challenges at Old Navy prove temporary while monitoring signs that Athleta's turnaround efforts are gaining traction.
Should You Invest $1,000 in GAP Right Now?Before you consider GAP, you'll want to hear this.
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Athleta's expected recovery has been pushed out for three straight years, as an attempt to widen its appeal ended up “appealing to no one in particular.”
LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260531916899/en/
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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
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.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus 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: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.15; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $2.31 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
Gap Inc. offers compelling value after a ~15% YTD and ~25% 12-month decline to a single-digit P/E multiple. I reiterate my buy rating on GAP, seeing margin improvement and a fundamental reset despite a disappointing Q1 and lowered top-line guidance. GAP is shifting from heavy discounting to improved supply planning, aiming to reduce inventory gluts and support healthier pricing.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
For investors, two apparel names currently are providing two very different pitches. When it comes to Gap (NYSE:GAP | GAP Price Prediction) and Lululemon Athletica (NASDAQ:LULU), which one belongs in a retirement-focused portfolio right now?
After running both through the lenses that matter most for income-oriented investors — yield, valuation and risk profile — the answer is more decisive than the brand prestige gap would suggest.
Dimension 1: When It Comes to Yield and Income, Gap Wins Decisively This one is short. Gap pays a quarterly dividend of 17.5 cents per share, raised this year from 16.5 cents, which itself was a step up from the 15-cent quarterly rate paid through 2024. The current annualized payout works out to 67 cents per share, and management just authorized a new $1.0 billion share repurchase, with roughly $599 million still remaining on the program.
Lululemon? No dividend. Capital returns flow exclusively through buybacks, including $1.2 billion repurchased in FY2025. Buybacks are useful, but they do not fund a retiree’s monthly bills. For an income-seeking investor, this dimension is settled before the analysis even begins.
Dimension 2: When It Comes to Valuation, Gap Wins Again Gap trades at a trailing P/E of 8 and a forward P/E of 9, with a price-to-sales of just 0.49. Lululemon, even after a brutal repricing, sits at a trailing P/E of 10 and forward P/E of 10, with price-to-sales near 1.4.
Lululemon is undeniably cheaper than it has been in years. The stock is down 36% year to date and 58% over the past year, currently trading near $128. But cheaper than its own history is not the same as cheap. Gap is the absolute lower-multiple stock, supports the multiple with a dividend, and has analysts pointing to a target of $27.67 against today’s $21.47.
Dimension 3: When It Comes to Volatility and Risk, Gap Wins on Stability Retirees care about drawdowns. Lululemon’s beta of 0.90 looks tame on paper, but the realized volatility tells a different story: a 58% five-year decline alongside an interim co-CEO structure after Calvin McDonald’s departure, 550 basis points of gross margin compression, persistent Americas comp weakness, and FY2026 EPS guidance of $12.10 to $12.30, an implied decline from $13.26.
Gap is moving the other direction. Management just raised the adjusted EPS guide to $2.30 to $2.40, marked a 9th consecutive quarter of positive comparable sales, and runs a stable bench under CEO Richard Dickson. Yes, Athleta remains a drag and online sales slipped 2% year over year, but the Gap brand alone posted a 10% comp in the latest quarter. Dickson framed the capital-return posture plainly: “increasing capital returns to shareholders, reflecting the growing strength of our balance sheet.”
Lululemon’s CEO message reads more defensively. Interim co-CEO Meghan Frank emphasized that “Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America.” That is a turnaround sentence, not a momentum sentence.
The Verdict For retirement-focused investors, Gap wins, and it is not particularly close. It pays and raises a dividend, trades at a single-digit forward multiple, just raised guidance, and operates with a fortress balance sheet. Three dimensions, three wins.
Lululemon has a place, just not in this portfolio. Growth-oriented investors with a 10-year horizon and a stomach for execution risk get a once-rare entry point into a premium brand with 30% China Mainland comp growth and 17% international revenue growth. That is a different bet for a different investor. The retiree writing checks against this portfolio takes Gap.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of The Gap, Inc. (NYSE: GAP).
Shareholders who purchased shares of GAP during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance. JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
DEADLINE: January 1, 2999 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/the-gap-inc-loss-submission-form/?id=187549&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of GAP during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is January 1, 2999. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. GAP has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.32 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GAP should be on investors' short list.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Summer is considered peak season for the cruise line industry. Families typically have a summer break from school. The warm ocean waters are that much more inviting.
Carnival Corp. (CCL +3.61%) knows all about the waves. Nearly a third of its annual revenue and most of its fiscal 2025 profit were generated in the fiscal third quarter, which starts again next week.
Carnival stock has risen 21% over the past year, outpacing its two closest publicly traded rivals. This isn't a regatta, but bragging rights are cool. I think things can get better for Carnival from here.
Let's go over three reasons to consider going on this Carnival ride.
Image source: Getty Images.
1. It's an earnings sensation June is usually a quiet time for financial updates, but with its fiscal second quarter ending this week, Carnival will announce its latest results in late June. Carnival's stock has risen enough to attract attention, but not enough to fear a sell-off even if results are decent.
If recent history is any indication, the fresh numbers should be decent. Expectations are low. Analysts see revenue rising 6% while earnings growth remains flat. The $0.34-a-share profit that Carnival is expected to deliver in four weeks is just below the $0.35 a share it served up a year earlier.
Rising fuel and food costs should weigh on margins, but Carnival has an ace up its sleeve. It has consistently trounced quarterly bottom-line expectations for almost three years.
This isn't just a streak of 11 straight positive earnings surprises. The beats have come in at least 9% above Wall Street pros' models. What's more likely to happen, stretching this run to 12 in June or imploding under the whirlpool of inflation rising and consumer confidence taking on water? I like Carnival's chances to go for an even dozen beats in June.
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2. The value gap is real Carnival is the largest cruise line by trailing revenue, but it doesn't wear the market cap crown. That regal accessory belongs -- fittingly enough -- to Royal Caribbean (RCL +2.23%).
Carnival's market capitalization is just shy of $39 billion, about half Royal Caribbean's $76 billion market cap. Zoom out to enterprise value to account for each cruise line operator's net debt, and Royal Caribbean still leads, $97 billion to $64 billion.
The valuation disparity grows even more interesting when you consider that Carnival's trailing revenue of $27 billion is well above Royal Caribbean's top line of $18.4 billion. As a Royal Caribbean investor, I'll point out that there are good reasons for the valuation premium. Royal Caribbean has historically grown faster and delivered healthier margins. However, Carnival is starting to get its act together.
Earlier this year, Carnival reinstated its dividend. Its board authorized $2.5 billion in stock repurchases. These are moves for a company that has figured it out and is ready to return money to its shareholders. It could close the valuation gap if it maintains its recent bullish momentum.
3. It's not just the inside cabins that are cheap The third and perhaps best reason to buy Carnival in June is that it's a cheap stock in a largely overvalued market. The stock is trading for a reasonable 13 times this fiscal year's earnings estimate and only 11 times next year's bottom-line forecast.
A lot can go wrong for the industry as a whole and for Carnival in particular. However, bookings remain strong for Carnival's future sailings. Like a pool deck after a limbo party comes to an end, this story is no longer about how low it can go.
Carnival has stabilized after a strong rally, with shares flat since August amid solid fundamentals and macro headwinds. Carnival reported strong Q1 2026 results: 6% revenue growth, 11% operating earnings growth, and adjusted EPS up to $0.20, despite higher share count. 85% of 2026 capacity is already sold, dividend reinstated at $0.15 per quarter, and further deleveraging is underway, though growth is slowing.
From May 28 to June 28, 2026, users who complete designated contract trading tasks will have the chance to unlock premium hospitality experiences for select group-stage, semi-final, and final matches, while also participating in a share of the $300,000 total prize pool. Rewards include USDT bonuses, travel subsidies, trial funds, BTC position-opening vouchers, and more.
VICTORIA, Seychelles, June 01, 2026 (GLOBE NEWSWIRE) -- As the global football fever of 2026 continues to build, global digital asset trading platform ZOOMEX has officially launched its “Win a Trip to the World Cup!” campaign. Centered around a $300,000 total prize pool and premium World Cup hospitality experiences, the campaign invites users worldwide to take part in an annual celebration created for both traders and football fans.
During the campaign period, users who complete designated contract trading tasks will have the chance to participate in a share of the $300,000 total prize pool, while unlocking multiple rewards including USDT bonuses, trial funds, BTC position-opening vouchers, deduction vouchers, travel subsidies, and premium matchday travel support. Selected hospitality experiences will cover on-site experiences related to designated group-stage, semi-final, and final matches, including viewing seats, matchday hospitality, and travel support. Specific reward details, quotas, match arrangements, and distribution rules are subject to the official ZOOMEX campaign page.
The ZOOMEX World Cup trading campaign will run from May 28 to June 28, 2026, with a total prize pool of up to $300,000. During the campaign, users who complete designated contract trading volumes will have the chance to unlock major rewards, including World Cup group stage tickets, semi-final VIP tickets, and World Cup final VIP tickets. Users may also redeem high-value USDT cash rewards, travel subsidies, flight subsidies, and hotel subsidies in accordance with the official campaign rules.
During the campaign period, users who complete designated contract trading tasks will have the chance to participate in a share of the $300,000 total prize pool, while unlocking multiple rewards including USDT bonuses, trial funds, BTC position-opening vouchers, deduction vouchers, travel subsidies, and premium matchday travel support. Selected hospitality experiences will cover on-site experiences related to designated group-stage, semi-final, and final matches, including viewing seats, matchday hospitality, and travel support. Specific reward details, quotas, match arrangements, and distribution rules are subject to the official ZOOMEX campaign page.
The campaign will run from May 28 to June 28, 2026. As the core mechanism of the campaign, ZOOMEX combines the global excitement of football with platform trading tasks, offering users across different tiers a more engaging and rewarding participation experience. During the campaign, users who complete designated contract trading volumes will have the chance to unlock corresponding reward tiers, including premium hospitality experiences, USDT cash rewards, exclusive travel subsidies, flight and hotel subsidies, and other benefits.
According to the campaign rules, users who complete the required trading tasks may have the chance to receive premium hospitality experiences related to designated group-stage matches and redeem up to 1,500 USDT. Users who complete higher-tier trading tasks may unlock premium hospitality experiences related to semi-final matches, with the opportunity to redeem up to 5,000 USDT plus travel subsidies. Higher-tier rewards will also cover premium hospitality experiences related to the final match, with users able to redeem up to 8,000 USDT and receive exclusive flight and hotel subsidy support.
In addition to premium hospitality experiences, ZOOMEX has also prepared exclusive deposit benefits for new users. During the campaign period, new users who make their first deposit can participate in dedicated reward programs, with the chance to receive up to $200 in trial funds and a $300 BTC position-opening voucher. The higher the deposit amount, the more reward benefits users may unlock, providing stronger incentives for new users to explore the platform and experience contract trading.
At the same time, ZOOMEX has introduced multi-tier trading task rewards. Users who complete designated trading tasks during the campaign period will be eligible to participate in a share of the $300,000 total prize pool. Rewards include USDT airdrops, trial funds, BTC position-opening vouchers, deduction vouchers, and other benefits. All rewards are available in limited quantities and will be distributed on a first-come, first-served basis according to the campaign rules, further enhancing user participation and campaign momentum.
A ZOOMEX brand representative stated that global football events are not only a celebration for fans, but also an important opportunity for brands to build stronger emotional connections with users. Through this football trading carnival, ZOOMEX aims to combine trading tasks, premium hospitality experiences, and global sports excitement to deliver a more engaging and memorable platform campaign experience. ZOOMEX will continue to focus on user needs and launch more brand campaigns that combine entertainment, interactivity, and reward value, further improving the trading experience for users worldwide.
As the global football fever of 2026 continues to rise, the integration of sports marketing and digital asset trading experiences is becoming an important way for brands to expand visibility and strengthen user engagement. By using football as a key theme, ZOOMEX is offering premium hospitality experiences, USDT rewards, travel subsidies, and new user benefits to further enhance brand recognition among global users and inject more excitement and participation into digital asset trading activities throughout the 2026 football season.
The ZOOMEX World Cup Trading Carnival is now officially live. Join the campaign today and unlock your own World Cup glory moment with ZOOMEX.
Disclaimer: This campaign is independently launched by ZOOMEX and is not sponsored, endorsed, administered, or organized in cooperation with any relevant international football event organizer, rights holder, or their affiliates. ZOOMEX is not an official sponsor, official partner, official ticketing agent, or official hospitality sales agent of any relevant event. Premium hospitality experiences, travel subsidies, and related rewards involved in this campaign are subject to the official ZOOMEX campaign rules.
About Zoomex
Founded in 2021, Zoomex is a global cryptocurrency trading platform with over 3 million users across more than 35 countries and regions, offering 600+ trading pairs. Guided by its core values of “Simple × User-Friendly × Fast,” Zoomex is also committed to the principles of fairness, integrity, and transparency, delivering a high-performance, low-barrier, and trustworthy trading experience.
Powered by a high-performance matching engine and transparent asset and order displays, Zoomex ensures consistent trade execution and fully traceable results. This approach reduces information asymmetry and allows users to clearly understand their asset status and every trading outcome. While prioritizing speed and efficiency, the platform continues to optimize product structure and overall user experience with robust risk management in place.
As an official partner of the Haas F1 Team, Zoomex brings the same focus on speed, precision, and reliable rule execution from the racetrack to trading. In addition, Zoomex has established a global exclusive brand ambassador partnership with world-class goalkeeper Emiliano Martínez. His professionalism, discipline, and consistency further reinforce Zoomex’s commitment to fair trading and long-term user trust.
In terms of security and compliance, Zoomex holds regulatory licenses including Canada MSB, U.S. MSB, U.S. NFA, and Australia AUSTRAC, and has successfully passed security audits conducted by blockchain security firm Hacken. Operating within a compliant framework while offering flexible identity verification options and an open trading system, Zoomex is building a trading environment that is simpler, more transparent, more secure, and more accessible for users worldwide.
Disclaimer: This sponsored content is provided by the content provider and does not necessarily reflect the views of this media platform or its publisher. The information is shared for general informational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency and mining-related activities carry risks, including the potential loss of capital, and readers are encouraged to conduct their own research and seek professional advice where appropriate. Speculate only with funds that you can afford to lose.The media platform and publisher assume no responsibility for any losses or claims arising from reliance on this content. GlobeNewswire does not endorse any content on this page.
Legal Disclaimer: This article is provided on an “as-is” basis, without warranties or representations of any kind, express or implied. The media platform assumes no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information presented. Any complaints, claims, or copyright concerns related to this article should be directed to the content provider mentioned above.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cb9a9070-8ab4-44e1-b7a3-f34074973b39
Carnival Jubilee becomes first cruise ship to refuel with LNG at Isla Tropicale in Roatán, advancing the company's overall decarbonization strategy
, /PRNewswire/ -- Marking a cruise industry first, Carnival Corporation (NYSE: CCL), the world's largest cruise company, collaborated with government and industry partners to introduce Liquefied Natural Gas (LNG) bunkering to Latin America and the Western Caribbean, using a mobile LNG fueling solution to refuel Carnival Cruise Line's Carnival Jubilee at Isla Tropicale in Roatán, Honduras.
The operation brings a new maritime fueling capability to the region and reinforces Roatán's growing role within Carnival Corporation's Caribbean operations, positioning Isla Tropicale along key Western Caribbean itineraries. Roatán's location allows LNG-capable ships to refuel with minimal disruption to their routes, helping optimize schedules and voyage planning.
The achievement also supports Carnival Corporation's broader decarbonization strategy, with LNG serving as one of several tools to reduce its emissions footprint while pursuing net zero greenhouse gas emissions from ship operations by 2050.
"This milestone reflects the collaboration and operational planning taking place worldwide within our organization to expand LNG bunkering across our global fleet," said Michael McNamara, vice president, strategic sourcing – fuel, for Carnival Corporation. "Bringing this capability to Latin America and the Western Caribbean supports key itineraries in the region while advancing our broader strategy to reduce emissions. We are grateful to President Asfura, government leaders and local partners for helping make this milestone possible."
"LNG bunkering in Roatán reflects the important role Honduras can play in the future of maritime energy in the Western Caribbean," said Miguel Ángel Gámez, Director General of Hydrocarbons and Biofuels. "This achievement and milestone strengthens Roatán's position as a strategic destination, supports Honduras' broader energy and economic development priorities and demonstrates the value of public-private collaboration. It is also an important step forward toward a cleaner, more affordable and more resilient national energy matrix."
LNG is currently one of the most readily available, proven and commercially scalable lower-emission fuels for the maritime industry – reducing direct carbon emissions by up to 20% and almost fully avoiding emissions of nitrogen oxides, sulfur oxides and particulate matter. Carnival Corporation pioneered LNG use in the cruise industry in 2018 and now leads the industry with 11 LNG-capable cruise ships in operation. By the end of 2033, the company expects seven additional LNG-capable ships to join the fleet.
Beyond this LNG milestone, Carnival Corporation's investments in Roatán reflect a broader commitment to strengthening destinations through environmental stewardship, local partnerships and long-term economic impact.
The beach at Isla Tropicale earned the Honduras Blue Flag Award in 2024 and 2025, receiving one of only two five-star ratings awarded in Honduras for meeting high standards in environmental management, water quality, safety, accessibility and sustainable tourism. This recognition supports Carnival Corporation's deep commitment to leading the way in sustainable cruising by promoting positive climate action to preserve natural resources and local ecosystems.
Since opening in 2009, Carnival Corporation has invested $93 million in Isla Tropicale, which has welcomed close to 9 million visitors and generated approximately $750 million in economic impact for Roatán. The destination supports more than 1,300 local jobs, benefiting vendors, tour operators, transportation providers and others tied to its operations.
This release may include claims related to our greenhouse gas emissions reductions, goals, initiatives, accomplishments and progress reports. Supporting data for such greenhouse gas emissions claims, including data verification information, is published in our Sustainability Reports on carnivalcorp.com/impact on an annual basis.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. Carnival Corporation Ltd. trades under the ticker symbol CCL on the NYSE and is a member of the S&P 500.
For more information, please visit www.carnivalcorp.com, www.csmartalmere.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com, and www.seabourn.com.
To learn more about Carnival Corporation's purpose and our commitment to sustainability, go to Our Impact.
In the latest close session, Carnival (CCL - Free Report) was down 1.96% at $27.51. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.
Shares of the cruise operator witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.17%, and underperforming the S&P 500's gain of 6.32%.
The upcoming earnings release of Carnival will be of great interest to investors. In that report, analysts expect Carnival to post earnings of $0.34 per share. This would mark a year-over-year decline of 2.86%. In the meantime, our current consensus estimate forecasts the revenue to be $6.63 billion, indicating a 4.72% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.24 per share and a revenue of $27.83 billion, signifying shifts of -0.44% and +4.54%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Carnival. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.97% fall in the Zacks Consensus EPS estimate. Currently, Carnival is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 12.52. This represents a discount compared to its industry average Forward P/E of 16.5.
Investors should also note that CCL has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CCL's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 21% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
291 Departures Across 150 Itineraries include new Ireland calls, overnight stays and the debut of a Pole-to-Pole Odyssey voyage
, /PRNewswire/ -- Princess Cruises unveils its most expansive Europe season for 2028, with 291 departures across 150 unique itineraries aboard six ships sailing throughout Northern Europe, the Mediterranean and on Transatlantic voyages.
Princess Cruises Announces Largest- Ever Europe Season for 2028 Now on sale, the season includes seven- to 53-day sailings, visiting 128 destinations in 37 countries, access to 101 UNESCO World Heritage Sites, and 32 late-night or overnight stays designed to give travelers more time ashore. Early booking bonuses are available June 2 through October 12, 2026, featuring up to $500 instant savings, a stateroom location upgrade, up to $500 onboard credit, early access to dining reservations, reduced $100 deposits and early access to arrival groups, plus extra savings for Captain's Circle members.
New for the season are Princess' first calls to Galway and Killybegs, Ireland, as well as the debut of the new Pole-to-Pole Odyssey, and extended voyage linking Antarctica and the Arctic.
"At Princess, we continue to see strong interest in Europe itineraries that offer both iconic destinations and more time for meaningful experiences ashore," said Jim Berra, Princess Cruises Chief Commercial Officer. "Our 2028 Europe season gives guests the broadest range of Europe options we've ever offered, including new calls in Ireland, more opportunities for immersive cultural experiences, and the introduction of our 53-day Pole-to-Pole Odyssey."
What's New for Europe 2028
The 2028 season represents the largest Europe deployment in Princess history, and includes:
291 departures across 150 itineraries. 128 destinations in 37 countries Six ships sailing from 13 departure ports - Caribbean Princess, Enchanted Princess, Majestic Princess, Regal Princess, Sky Princess and Sun Princess Maiden calls to Galway and Killybegs, bringing guests to Ireland's rugged and culturally rich western coast for the first time. The debut of the Pole-to-Pole Odyssey, a true epic Europe experience that links Antarctica and the Arctic in one unforgettable voyage showcasing dramatic landscapes, diverse cultures and once-in-a-lifetime exploration. Access to 101 UNESCO World Heritage Sites and 32 late-night and overnight stays that allow for deeper, more authentic connections ashore. Culture, Immersion & Local Connection
Princess' Europe itineraries go beyond traditional sightseeing, emphasizing authentic cultural immersion through Princess Local Connections and elevated "Ultimate" shore excursions. Guests can engage directly with local people, traditions and cuisine through experiences designed with regional experts and backed by Princess Cruises' Guaranteed Return to Ship promise.
Longer port days, late nights and overnight stays offer more time to experience destinations after dark, when local culture is at its most vibrant. Signature experiences include pasta making with an Italian family, exploring Indigenous Sami traditions in Arctic Norway, artisan workshops at Royal Delft in the Netherlands, and expertly guided access to iconic landmarks such as Mont Saint-Michel and ancient Athens.
Northern Europe - Immersive, Unexpected Europe
Princess' Northern Europe itineraries focus on smaller ports, dramatic landscapes and authentic cultural connection, creating experiences that feel more personal and less commercialized. Highlights include:
Standing before Norway's breathtaking fjords, discovering Ireland's rugged west coast through maiden calls to Galway and Killybegs, and experiencing cultures shaped by centuries of maritime heritage and regional tradition. Late-night and overnight stays are featured in destinations including Stockholm, Hamburg, Tromsø (located in Northern Norway and often referred to as the "Gateway to the Arctic"), Amsterdam, Copenhagen, Belfast and Reykjavik, allowing guests to experience these cities beyond the daytime hours. Mediterranean - The Europe Guests Have Always Imagined
Princess' Mediterranean voyages combine Europe's most iconic destinations with immersive local experiences that go beyond postcard moments, including:
Exploring ancient ruins in Athens, Pompeii and Ephesus before discovering the energy and charm of cities such as Barcelona, Lisbon, Dubrovnik and Florence, where history and modern life come together in unforgettable ways. The season also features a strong lineup of late-night and overnight stays in dynamic ports including Istanbul, Mykonos, Ibiza, Valletta, Split, Lisbon and La Spezia (Florence/Pisa). Transatlantic Voyages- The Journey Is Part of the Experience
Princess' Transatlantic voyages are positioned as a relaxed and seamless alternative to flying, transforming long-haul travel into part of the vacation itself. These sailings connect Europe with North and South America while allowing guests to settle into the journey at a slower, more enjoyable pace. Routes feature calls to destinations including the Canary Islands, Madeira, the Azores, Bermuda and Morocco, and the new Pole to Pole Odyssey.
Even Easier to Get There
Guests can also simplify their travel planning through Princess EZair, which offers competitive airfare, 24/7 support and flexible options including the ability to book now and pay later, providing peace of mind from takeoff to touchdown.
Book a Princess Cruise Vacation to Europe
Additional information about Princess Cruises is available through a professional travel advisor, by calling 1-800-PRINCESS (1-800-774-6237), or by visiting princess.com.
About Princess Cruises:
Princess Cruises is The Love Boat, the world's most iconic cruise brand that delivers dream vacations to millions of guests every year in the most sought-after destinations on the largest ships that offer elite service personalisation and simplicity customary of small, yacht-class ships. Well-appointed staterooms, world class dining, grand performances, award-winning casinos and entertainment, luxurious spas, imaginative experiences and boundless activities blend with exclusive Princess MedallionClass service to create meaningful connections and unforgettable moments in the most incredible settings in the world - the Caribbean, Alaska, Panama Canal, Mexican Riviera, Europe, South America, Australia/New Zealand, the South Pacific, Hawaii, Asia, Canada/New England, Antarctica, and World Cruises. Star Princess, the brand's newest and most innovative ship, launched October 2025, and sister ship to Sun Princess, named Condé Nast Traveler Mega Ship of the Year for a second consecutive year. The company is part of Carnival Corporation, the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide (NYSE: CCL).
If you’ve ever cruised on a Carnival ship, your personal information might have been exposed in a recent hack.
The accessed data included personal information from customers, such as their name, address, email address, phone number, date of birth, and ID information (e.g., passport or driver’s license number).
According to a notice published by the company on May 27, Carnival’s IT department first became aware of unidentified access to a “limited portion” of the company’s IT system on April 14. The data is said to have been accessed through an act of social engineering, a form of cyberattack in which bad actors manipulate an individual into granting access to systems or information.
“The company acted swiftly to block the unauthorized activity and immediately began working with third-party security experts to further strengthen its security and to conduct a thorough investigation,” the company stated in the notice. “As part of this investigation, the company determined the bad actor illegally accessed certain personal information.”
Carnival began notifying affected individuals by email starting May 27, offering individuals a two-year complimentary subscription for TransUnion credit monitoring. The email included details for a dedicated call center that TransUnion set up to help individuals with enrollment.
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Individuals who think they might be affected may also call the TransUnion call center at 844-593-8310, from 8 a.m. to 8 p.m. ET, Monday through Friday, excluding major U.S. holidays.
In addition to these services, the company advises individuals to remain vigilant for fraud or identity theft and to notify the police if they suspect either.
The company is also taking next steps for the future.
“In addition to the comprehensive security measures the company had in place prior to the incident, it has taken steps to further safeguard its systems, including enhancing its security and monitoring controls,” Carnival said. “The company will continue to advance its IT security and data privacy controls to stay ahead of an ever-evolving threat landscape.”
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ABOUT THE AUTHOR
María José Gutierrez Chavez is a trending news writer for Fast Company. She was previously the editorial fellow at Inc More
The cruise industry has sailed back to full strength, but choosing between Royal Caribbean Cruises (RCL +2.23%) and Carnival Corporation (CCL +3.61%) requires a look at their different financial trajectories.
Royal Caribbean focuses on a mix of high-end and family-oriented experiences to drive its net margin. Meanwhile, Carnival operates the industry's largest fleet, using its massive scale to capture a wide breadth of travelers. Both companies are vying for dominance as consumer spending on experiences remains a top priority.
Royal Caribbean Cruises operates an enormous global vacation business through brands such as Royal Caribbean International, Celebrity Cruises, and Silversea. These brands allow the company to target a wide range of travelers, from families looking for adventure to high-end luxury seekers.
By maintaining a fleet of nearly 70 ships and employing close to 100,000 people, the company covers every major cruise market worldwide. Its 50% joint venture in TUI Cruises further extends its reach into European markets.
In its 2025 fiscal year (FY), revenue reached $17.9 billion, representing growth of 8.8% compared to the prior year. This expansion helped drive a net income of $4.3 billion for the period, resulting in a net margin of 23.8%. The results show a clear upward trajectory when compared to the $2.9 billion in net income recorded during 2024. This growth is supported by strong demand across both contemporary and luxury segments.
As of its December 2025 balance sheet, the debt-to-equity ratio is 2.3x, which means total debt is more than double the company's equity. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, sits at roughly 0.2x. A ratio below 1.0 indicates that short-term liabilities exceed short-term assets, a common situation in this industry. Free cash flow, or the cash left over after paying for operations and equipment, reached $1.2 billion.
The case for Carnival CorporationCarnival operates as the world's largest leisure travel company with a portfolio of nine distinct cruise brands including Princess, Holland America, and Cunard. The company manages a global fleet of more than 90 ships that visit over 800 destinations annually. This substantial scale is a primary differentiator among travel and tourism stocks, allowing it to capture diverse customer segments. The company visits over 800 ports, ensuring its brands like AIDA and Costa remain household names across diverse continents.
For FY 2025, the company reported revenue of $26.6 billion, a growth rate of 6.4% year over year. Net income for the fiscal year reached close to $2.8 billion, a significant improvement from the previous year when the net margin was 7.7%.
This performance continues a recovery trend from 2023 when the company reported a net loss. The increased revenue is primarily driven by higher passenger ticket prices and increased onboard spending.
Based on its November 2025 balance sheet, the debt-to-equity ratio is 2.3x, indicating that total debt is more than twice the value of shareholder equity. The current ratio, a measure of how easily a firm can cover its immediate bills, is approximately 0.3x. This reflects a structure where customer deposits often sit on the balance sheet as liabilities until the cruise is completed. Free cash flow for the year was $2.6 billion, providing substantial capital for reinvestment or debt reduction.
Risk profile comparisonRoyal Caribbean faces significant risks from cybersecurity threats that could compromise its maritime operations or sensitive guest data. Geopolitical tensions or disease outbreaks can also lead to sudden drops in travel demand or expensive itinerary changes. Furthermore, the company relies on a small number of shipyards for new-build programs and repairs, which can lead to delays or higher costs. Increasing environmental regulations related to carbon emissions also present long term cost pressures for the entire fleet.
Carnival must navigate risks associated with fluctuating fuel prices, which can directly impact its operating expenses. Frequent weather events like hurricanes also pose threats to ship safety and scheduled port visits, potentially leading to cancellations. The company competes for vacation spending against other major players like Norwegian Cruise Line. Additionally, the company is susceptible to supply chain disruptions and the difficulty of recruiting a large, qualified global workforce.
Valuation comparisonCarnival appears to be the more value-oriented choice as it trades at a lower multiple of future earnings estimates and revenue.
MetricRoyal Caribbean CruisesCarnival Corporation &Sector BenchmarkForward P/E16.1x11.8x31.2xP/S ratio4.3x1.5xSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Royal Caribbean Cruises and Carnival Corporation are both solid choices to provide investors with exposure to the cruise industry, although they are likely to be more appealing to income-oriented investors given their dividends. As of June 3, Carnival’s dividend yield is 1.1%, while Royal Caribbean sports a higher yield of 1.7%.
Both are seeing rising revenue and produce plenty of free cash flow to pay for their dividends. However, Royal Caribbean stock fell to a 52-week low of $232.10 on May 20 after the company shared cruises in the second quarter are exposed to higher risk of impact from global events.
Carnival stock boasts the better valuation. This suggests Royal Caribbean shares are pricey in comparison. In fact, Carnival announced a $2.5 billion stock buyback program, indicating it believes its stock is a good value right now.
I like both stocks, so I picked up shares of each some time ago. For those seeking to pick up shares now, Carnival’s lower valuation makes it the better buy.
Updates across suites, dining, and gathering spaces reflect the most comprehensive drydock in the line's history
, /PRNewswire/ -- Seabourn's award-winning Seabourn Quest has emerged from drydock with the most comprehensive interior update in the line's history. Enhancements across suites, public spaces, dining venues and the spa create a more relaxed and refined onboard experience, further elevating the sense of comfort and understated luxury guests know and value.
The ship will continue its Mediterranean season through November 2026, and sail a series of immersive seven-day voyages between Dubrovnik, Fusina (Venice), Istanbul and Athens, calling on yacht harbors and islands in Croatia, Greece, Montenegro and Turkey. Each voyage can be combined to create 14- and 21-day sailings.
"This drydock represents an investment that reflects our unwavering focus on elevating every aspect of the guest experience," said Mark Tamis, president of Seabourn. "Seabourn Quest has always had a loyal following, and we wanted to enhance the spaces where our guests spend their time on board, from the feel of their suite to the atmosphere of The Club in the evening, to ensure they have the best experience at sea when they sail on this beautiful ship."
Reimagined Public Spaces
The Club underwent one of the most significant transformations on board, with a sophisticated, speakeasy-inspired ambiance, reconfigured layout, updated bar design and new lighting that reshape how the space is experienced throughout the evening.
The redesigned layout creates a more cohesive atmosphere for live music and social gatherings, while also improving the flow across the venue, allowing guests to move naturally between the bar, lounge seating and dance floor.
Across the rest of ship, public areas have been updated to enhance flow and atmosphere, making it easier for guests to move naturally through the ship, settle in, and enjoy each part of the day. The atrium, corridors and stairways received new carpeting, featuring patterns inspired by the organic movement of water. The main pool deck debuts with all new sound system and lighting, surrounded by renewed teak deck.
Seabourn Square now features a warmer, living room atmosphere including new furniture and limited bistro-style seating. The Observation Bar received a refresh with updated carpet and furnishings, creating a brighter, more relaxed setting for panoramic views. The Spa was enhanced with a redesigned reception area, all new gym equipment and updated salon, including new finishes, lighting and furnishings, creating a more serene, calming environment that deepens the sense of relaxation and well-being.
The onboard shops were also enhanced with updated finishes, lighting and display elements, offering a more inviting atmosphere for guests to browse and discover curated pieces. These updates align with recent upgrades across the Seabourn ocean fleet.
Enhanced Dining Venues
The Colonnade was refreshed with new flooring, carpeting, seating and an updated service line to highlight live cooking. In The Restaurant, new carpet and drapery introduce a lighter and more modern look, enhancing the overall ambiance while preserving the venue's refined feel.
Refreshed Suites and Accommodations
Suites across all categories received new mattresses and plush new wool carpeting, while Penthouse and premium suites also received updated veranda furniture, creating a more inviting space to relax and take in the view.
Design Approach
Together, these updates reflect an evolved design approach that brings a more residential and personal feel to Seabourn Quest. Drawing from the textures and tones of the places Seabourn explores, the interiors incorporate layered materials and finishes that create a cohesive environment and improve the way guests move through and experience each space.
"Our goal was to create spaces that feel natural, intuitive and effortlessly comfortable for guests," said Linh Nguyen, Senior Manager, Interior Design & Assets Management. "Rather than referencing a single destination, the design takes a broader approach, using materiality and scale to shape spaces that feel balanced, familiar and easy to experience."
Incorporating Sustainable Practices
Alongside elevated design updates, meaningful steps were taken to reduce waste and extend the life of materials on board. More than 20,000 square meters (approx. 215,000 square feet) of carpet were replaced. All original carpet was diverted from landfill and is planned to be repurposed into new carpet padding that the shipyard will reintegrate on board for a future Seabourn renovation. Updated suites now feature biodegradable Cradle to Cradle Dansk Wilton wool carpet to further support a closed-loop lifecycle approach. In addition, all mattresses were deconstructed for recycling by the shipyard, while lounge furnishings were donated to local Italian non-profit organization, extending the life of these materials, redirecting them from landfill disposal, and benefitting surrounding communities.
An Ongoing Investment in the Fleet
The 2026 drydock builds on previous enhancement cycles and represents the most comprehensive interior investment in Seabourn's history. The scope of work also included updates to crew areas, amenities and accommodations, supporting the onboard team that delivers the personalized service at the heart of the Seabourn experience.
For guests looking to experience these updates aboard Seabourn Quest, Seabourn's Exploration Event offers savings of up to 15 percent on select summer ocean and expedition voyages. Seabourn is also offering up to $1,000 in shipboard credit per suite on select winter voyages.
For more details about Seabourn, contact a professional travel advisor, call 1-800-929-9391 or visit www.seabourn.com.
About Seabourn:
Seabourn represents the pinnacle of luxury ocean and expedition travel and operates a suite of five modern ships. The all-inclusive, boutique ships offer all-suite accommodations with oceanfront views; award-winning dining; complimentary premium spirits and fine wines available at all times; renowned service provided by an industry-leading crew; a relaxed, sociable atmosphere that makes guests feel at home; a pedigree in expedition travel through the Ventures by Seabourn program and two luxury purpose-built expedition ships, including Seabourn Venture that launched in 2022 and Seabourn Pursuit in 2023. Seabourn takes travelers to every continent on the globe, visiting more than 400 ports including marquee cities and lesser-known ports and hideaways. Guests of Seabourn experience extraordinary offerings and programs, including partnerships with leading entertainers, dining, personal health and wellbeing, and engaging speakers.
Seabourn is part of Carnival Corporation, the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide. (NYSE: CCL).
Find Seabourn on X, Facebook, Instagram, YouTube and Pinterest.
In the latest close session, Carnival (CCL - Free Report) was down 1.46% at $27.01. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.86%.
The cruise operator's stock has climbed by 3.9% in the past month, exceeding the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 2.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.63 billion, up 4.72% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $27.83 billion. These totals would mark changes of -1.78% and +4.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. At present, Carnival boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 12.4. This signifies a discount in comparison to the average Forward P/E of 15.82 for its industry.
It's also important to note that CCL currently trades at a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.
World-class travel leader delivers top technology to casino guests
LAS VEGAS--(BUSINESS WIRE)--Konami Gaming, Inc. announced it has successfully installed its SYNKROS® casino management system on a second cruise line in the world’s largest cruise company Carnival Corporation’s (NYSE: CCL) portfolio. Building on the success of its systems installed across Holland America Line, the company has outfitted all 29 Carnival Cruise Line ships with its award-winning system. Leveraging SYNKROS, known internally under the acronym “SURF” for “Serving Up Rewards and Fun”, guests across the Carnival Cruise Line fleet can now tap into personalized rewards, offers, bonuses and cashless wagering in the onboard casinos.
“Konami is committed to serving Carnival Corporation’s existing SYNKROS install base with trust and reliability, while partnering collaboratively through ongoing expansion fleetwide.”
Share “We're obsessed with giving guests the best time possible with great service, standout rewards and innovation that raises the fun factor even higher, so it’s been fantastic to roll out SURF across the entire Carnival Cruise Line fleet and make the guest experience even more rewarding,” said Marty Goldman, SVP Global Gaming at Carnival Corporation. “We look forward to bringing these exciting gaming experiences to millions more, as SURF continues to expand across Carnival Corporation’s world-class portfolio.”
Guests on Carnival Cruise Line now have access to an array of top conveniences and fun experiences spanning thousands of gaming machines and powered by Konami’s SYNKROS technology. Rewards, offers and bonuses are tailored to the player, reflecting gaming preferences and featuring cruise-specific elements such as seamless cashless folio integration. Leveraging top SYNKROS advancements, Carnival Corporation also delivers rewarding bonus opportunities, including the chance to take top honors in virtual prize drawings.
“Carnival Corporation continues to innovate the guest experience in every detail of the journey, demonstrated in exciting new ways across the combined 40 onboard casinos of Carnival Cruise Line and Holland America Line now live with top SYNKROS technology,” said Tom Jingoli, president & chief operating officer at Konami Gaming, Inc. “Konami is committed to serving Carnival Corporation’s existing SYNKROS install base with trust and reliability, while partnering collaboratively through ongoing expansion fleetwide.”
Carnival Corporation is slated to continue rolling SYNKROS enterprise-wide, including to its full portfolio of world-class cruise lines. Those interested in learning more about SYNKROS’ award-winning product suite are encouraged to visit www.konamigaming.com.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500.
For more information, please visit www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com and www.seabourn.com.
To learn more about Carnival Corporation’s purpose and our commitment to sustainability, go to www.carnivalcorp.com/impact/.
About Konami Gaming, Inc.
Konami Gaming, Inc. is a Las Vegas-based subsidiary of KONAMI GROUP CORPORATION (TSE: 9766). The company is a leading designer and manufacturer of casino games and technology for the global gaming market. For more information about Konami Gaming, Inc. or the SYNKROS® casino management system, please visit www.konamigaming.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Carnival (CCL - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Carnival currently has an average brokerage recommendation (ABR) of 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 77.8% and 3.7% of all recommendations.
Brokerage Recommendation Trends for CCL
Check price target & stock forecast for Carnival here>>>
While the ABR calls for buying Carnival, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is CCL Worth Investing In?In terms of earnings estimate revisions for Carnival, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.21.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Carnival. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Carnival.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Carnival (CCL - Free Report) . CCL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.58, while its industry has an average P/E of 15.85. CCL's Forward P/E has been as high as 20.07 and as low as 8.45, with a median of 13.45, all within the past year.
CCL is also sporting a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCL's PEG compares to its industry's average PEG of 1.13. CCL's PEG has been as high as 0.86 and as low as 0.37, with a median of 0.60, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 3.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.49. Within the past 52 weeks, CCL's P/B has been as high as 3.79 and as low as 2.09, with a median of 3.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCL has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.83.
Finally, our model also underscores that CCL has a P/CF ratio of 8.05. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CCL's current P/CF looks attractive when compared to its industry's average P/CF of 12.06. Over the past 52 weeks, CCL's P/CF has been as high as 8.64 and as low as 4.49, with a median of 7.39.
These are only a few of the key metrics included in Carnival's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CCL looks like an impressive value stock at the moment.
Carnival (CCL - Free Report) closed the last trading session at $27.73, gaining 11.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $34.95 indicates a 26% upside potential.
The mean estimate comprises 24 short-term price targets with a standard deviation of $4.83. While the lowest estimate of $28.70 indicates a 3.5% increase from the current price level, the most optimistic analyst expects the stock to surge 62.3% to reach $45.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for CCL, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CCL Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 0.3% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, CCL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CCL could gain, the direction of price movement it implies does appear to be a good guide.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Carnival (CCL - Free Report) , which belongs to the Zacks Leisure and Recreation Services industry, could be a great candidate to consider.
This cruise operator has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 23.56%.
For the most recent quarter, Carnival was expected to post earnings of $0.18 per share, but it reported $0.2 per share instead, representing a surprise of 11.11%. For the previous quarter, the consensus estimate was $0.25 per share, while it actually produced $0.34 per share, a surprise of 36.00%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Carnival lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Carnival currently has an Earnings ESP of +5.88%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
, /PRNewswire/ -- Carnival Corporation Ltd. (NYSE: CCL) has scheduled a conference call with analysts for Tuesday, June 23, 2026, at 10 a.m. (EDT) to discuss the company's second quarter financial results which are expected to be released that morning.
A simulcast of the call will be available via the company's website at www.carnivalcorp.com.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500.
For more information, please visit www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com, and www.seabourn.com.
As Cunard celebrates America's 250th anniversary, travelers can enter for a chance to sail aboard the world's only ocean liner for an incredible milestone crossing
, /PRNewswire/ -- As Queen Mary 2 prepares to join Sail4th 250 this July – celebrating America's 250th anniversary in New York Harbor – Cunard is inviting travelers to become part of its next historic milestone at sea. The British luxury cruise brand has launched a sweepstakes* to celebrate Queen Mary 2's historic 450th Transatlantic Crossing this November – a voyage that continues Cunard's enduring legacy of connecting the United Kingdom and the United States through ocean travel.
Queen Mary 2 is the world’s only active ocean liner with regularly scheduled transatlantic crossings between New York and Southampton, UK. Now through July 31, 2026, guests can enter for the chance to join the highly anticipated crossing, sailing from Southampton to New York from November 10-17, 2026. The prize winner and a guest will not only experience the rebirth of the golden age of ocean travel, but also receive flights, hotel accommodations in Southampton, and transportation to and from the port.
A Rich Heritage of Transatlantic Ocean Travel
The announcement comes during another defining moment for Cunard with July 4 marking the anniversary of the cruise line's very first crossing, when RMS Britannia departed Liverpool for Boston in 1840. This voyage launched the world's first regularly scheduled transatlantic steamship service and forever transformed global travel, trade and communication. Nearly two centuries later, Cunard remains the only cruise line offering regularly scheduled Transatlantic Crossings aboard the world's only ocean liner, Queen Mary 2.
"Transatlantic travel is the foundation of Cunard's rich heritage and remains one of the most iconic experiences in luxury travel today," said Liz Fettes, Senior Vice President, Commercial, North America and Australasia at Cunard. "As we prepare to participate in America's 250th anniversary celebration, it feels especially meaningful to also celebrate Queen Mary 2's upcoming 450th crossing. This milestone is a testament to the 186 years of history, connection and unforgettable voyages across the Atlantic."
Celebrating America's 250th Anniversary
On July 4, 2026, New York Harbor will come alive for Sail4th 250, celebrating America's 250th anniversary with the largest international flotilla of tall ships and naval vessels ever assembled. Queen Mary 2 and her guests will enjoy a front-row seat to the festivities, honoring Cunard's rich connection to U.S. history – with an estimated one in five immigrants traveling to the U.S. aboard Cunard steamships between 1840 and 1923. Today, Cunard's legacy of refined, elegant ocean travel lives on with a fleet of four ships sailing around the world, including its newest ship Queen Anne, Queen Elizabeth, Queen Mary 2 and Queen Victoria.
The sweepstakes is open now through July 31, 2026. To enter and view official rules, visit www.cunardcrossinggiveaway.com and complete the registration form to receive one entry. After submitting their initial entry, participants can also earn one bonus entry by either uploading their favorite photo from a past Cunard voyage or by participating in a poll sharing what they most look forward to experiencing on their first Cunard voyage.
For more information about Cunard or to book a voyage, guests can contact their travel advisor, call Cunard at 1-800-728-6273 or visit www.cunard.com.
Travel Advisors interested in further information can contact their Business Development Manager, visit OneSourceCruises.com, or call Cunard at 1-800-528-6273.
*For full terms and conditions, please visit www.cunardcrossinggiveaway.com
About Cunard
Cunard is a luxury British cruise line, renowned for creating unforgettable experiences around the world. Cunard has been a leading operator of passenger ships since 1840.
The Cunard experience is built on fine dining, hand-selected entertainment, and outstanding White Star service. From a partnership with a two-Michelin starred chef, to inspiring guest speakers, to world class theatre productions, every detail has been meticulously crafted to make the experience unforgettable. A pioneer in transatlantic journeys and round world voyages, destinations sailed to also include Europe, the Caribbean, Alaska, the Far East and Australia.
There are currently four Cunard ships, Queen Mary 2, Queen Elizabeth, Queen Victoria and new ship, Queen Anne, which entered service in May 2024. Cunard is based at Carnival House in Southampton, UK and is part of Carnival Corporation, the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide. (NYSE: CCL).
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Synopsys Inc (NASDAQ:SNPS, XETRA:SYP) reported fiscal second quarter results above Wall Street expectations, with adjusted earnings and revenue both exceeding forecasts and the company lifting its full-year guidance.
Adjusted earnings per share came in at $3.35, topping consensus estimates of $3.15, while revenue rose 41.9% year-over-year to $2.28 billion, above the expected $2.25 billion.
For the full fiscal 2026 year, Synopsys raised its revenue outlook to a range of $9.63 billion to $9.71 billion and increased its non-GAAP earnings per share guidance to $14.72 to $14.80.
Management attributed the broader performance to strength across the business and ongoing integration benefits from Ansys.
"Synopsys delivered a strong second quarter with solid execution and strength across the business," Synopsys CEO Sassine Ghazi said in a statement.
"Our momentum, leadership roadmap, and deep customer engagements are a strong foundation for sustained growth and margin expansion as we solve our customers' toughest engineering challenges."
Despite the beat-and-raise results, investors focused on weakness in the company’s high-margin Design IP segment, which fell 6% year-over-year to $454 million, sending shares of Synopsys down more than 7% to about $486.
Key Takeaways SNPS Q2 revenues jumped 41.9% year over year, fueled by Design Automation and Ansys.Synopsys expanded non-GAAP operating margin to 39.5% as EDA segment profitability improved.Synopsys guided fiscal 2026 revenues to be $9.625-$9.705B and non-GAAP EPS of $14.72-$14.80. Synopsys (SNPS - Free Report) reported non-GAAP earnings of $3.35 per share for the second quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 5.7%. The bottom line decreased 8.7% on a year-over-year basis.
Synopsys’ earnings beat the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, with the average surprise being 0.9%.
Synopsys’ fiscal second-quarter revenues jumped 41.9% year over year to $2.28 billion, beating the Zacks Consensus Estimate by 1.1%. The top line was primarily driven by an increase in revenues of Time-Based Product, Upfront Product and Maintenance and Service businesses.
Synopsys’ Q2 DetailsIn the license-type revenue group, Time-Based Product revenues of $945.6 million (representing 41.5% of total revenues) increased 14.2% year over year. Upfront Product revenues (24% of total) rose 7% to $546.3 million. Maintenance and Service revenues (34.5% of total) surged to $784.1 million, up sharply from the year-ago quarter’s $265.3 million.
Segment-wise, Design Automation revenues, which include EDA, Ansys and Other, were $1.82 billion, representing 80% of total revenues and up 62.3% from the prior-year quarter. Design IP revenues were $454.2 million, representing 20% of total revenues and down from $482 million a year ago. With the addition of Ansys, the Simulation & Analysis group is now incorporated into the EDA segment, beginning the third quarter of fiscal 2025. Other revenues were $7 million, representing 0.3% of total revenues. Ansys contributed 28.7% of the total revenues.
Geographically, Synopsys generated $998.5 million from North America (44% of total) and $378.1 million from Europe (17%). Revenues from Korea (12%), China (10%) and Other regions (17%) were $265.4 million, $240.4 million and $393.6 million, respectively.
The non-GAAP operating margin for the quarter was 39.5%, which expanded 150 basis points from the year-ago period.
Within segments, Design Automation’s adjusted operating margin improved to 43.3%, up from 40.9% a year earlier, while the Design IP segment’s adjusted margin contracted to 24.4%, down from 31.2% last year.
Synopsys’ Balance Sheet & Cash FlowSynopsys ended the second quarter of fiscal 2026 with $2.48 billion in cash, cash equivalents and short-term investments, up from $2.20 billion in the prior quarter. Total long-term debt was $10.01 billion.
During the second quarter of fiscal 2026, Synopsys generated $629 million in operating cash flow.
SNPS Raises Guidance for FY26For fiscal 2026, Synopsys raised its revenue outlook to $9.625-$9.705, up from the prior guided range of $9.56-$9.66 billion. The Zacks Consensus Estimate for SNPS’ fiscal 2026 revenues is pegged at $9.63 billion, indicating year-over-year growth of 36.5%.
SNPS lifted non-GAAP EPS target to $14.72-$14.80 per share, up from the prior guidance of $14.38-$14.46. The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.45, indicating year-over-year growth of 11.9%.
For the third quarter of fiscal 2026, the company expects revenues of $2.41-$2.4 billion and non-GAAP earnings of $3.63-$3.69 per share. Management said the updated full-year framework includes the Ansys channel accounting impact and also reflects an expected reduction tied to the pending sale of the Processor IP Solutions business, which it expects to close shortly.
The Zacks Consensus Estimate for SNPS’ third-quarter fiscal 2026 revenues is pegged at $2.41 billion, indicating year-over-year growth of 38.6%.
The Zacks Consensus Estimate for SNPS’ third-quarter fiscal 2026 earnings is pegged at $3.64, indicating a year-over-year increase of 7.4%.
SNPS’ Zacks Rank and Stocks to ConsiderCurrently, SNPS carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have rallied 74.4% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.
Shares of Celestica have gained 21% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have jumped 3.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
New production-ready, AI-powered digital and analog flows are available for second-and third-generation 2nm processes accompanied by an expanded portfolio of certified interface IP, including for Samsung Foundry's automotive nodes. Unique Design Technology Co-Optimization (DTCO) initiatives for synthesis and layout, as well as signoff, are delivering meaningful power, performance, and area (PPA) enhancements. Customers are observing significant test efficiency improvements of up to 20% by leveraging AI-powered, silicon-based design and manufacturing test capabilities validated and deployed in collaboration with Samsung Foundry. , /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced at Samsung Advanced Foundry Ecosystem (SAFE) Forum 2026 its latest collaborations with Samsung Foundry on advanced nodes, including an expanded portfolio of production‑ready, AI-powered EDA tools, certified interface IP, and silicon-based test capabilities, enabling customers to bring differentiated AI and multi-die designs to market faster and with measurably improved quality.
During his keynote at the event, Synopsys President and CEO Sassine Ghazi underscored the companies' long-standing collaboration to address compounding semiconductor engineering complexity, intense pressure for faster development cycles, and increasing costs. Ghazi emphasized that overcoming these challenges requires a fundamentally new approach where AI driven automation and multiphysics intelligence are fused across the entire design and manufacturing flow. Pointing to initiatives leveraging Synopsys AI-powered solutions and deep design and technology co optimization (DTCO), Ghazi said customers are bringing advanced silicon to market faster, while achieving meaningful gains in PPA and test efficiency, on Samsung Foundry's latest process nodes.
"Close alignment across design, test, and manufacturing are critical to the success of AI and multi-die designs on advanced nodes," said Hyung‑Ock Kim, vice president and head of the Foundry Design Technology Team at Samsung Electronics. "Our continued close collaboration with Synopsys delivers silicon-based, customer-validated solutions that help our customers reduce design integration risk, improve silicon predictability, and move confidently from design to production for their most innovative solutions."
"As designs become more heterogeneous, customers need production‑ready, silicon-proven solutions that address complexity and minimize risk from silicon to systems," said Ravi Subramanian, Chief Product Management Officer at Synopsys. "Our work with Samsung Foundry translates years of DTCO and silicon learning into enablement that helps our customers get their advanced designs to market quickly and with confidence."
The latest Synopsys and Samsung Foundry collaborations include:
New Synopsys Production-Ready Flows and Improved PPA on third-generation 2nm class process: Synopsys AI-powered digital and analog flows are production-ready for third-generation 2nm class process, helping customers migrate to advanced Samsung Foundry nodes with speed and confidence. Through Synopsys and Samsung Foundry's continued DTCO initiatives, Synopsys Fusion Compiler™ on third-generation 2nm class process delivers measurable power and performance improvements validated with customers, compared to second-generation 2nm class process. Silicon-Based Power and Performance Improvements During Signoff with Certified Multiphysics Capabilities: New Synopsys PrimeShield™ Process Sensitivity Analysis and PVT Explorer support design-specific optimization and engineering change order (ECO) decisions during signoff, with demonstrated frequency improvement of up to 2.7% within 5% leakage current degradation respectively, informed by silicon feedback on 2nm class-based processes.1 In addition, Synopsys Totem-SC is a newly certified electromigration (EM) and IR drop analysis solution on second-generation 2nm and 4nm class processes improving silicon design power integrity and reliability. AI-Powered Test Improves Efficiency and Quality of Designs: Synopsys and Samsung Foundry are applying silicon-proven methodologies to design for test (DFT) enablement and manufacturing test to reduce test cost and improve test quality for designs on advanced process nodes. For example, Synopsys TestMAX™ with AI-assisted automatic test pattern generation (ATPG) technologies (TSO.ai) validated and deployed in collaboration with Samsung Foundry teams, help reduce test patterns and test cycles up to 20% while preserving fault coverage on SoC and multi-die designs manufactured at Samsung Foundry. Additionally, physically aware tests and failure diagnosis at the die and multi-die level improve test quality and failure analysis turnaround time with results validated on silicon at Samsung Foundry. Unified Exploration‑to‑Signoff Platform with Multiphysics Analysis Supporting Samsung's 3DIC Solution with Hybrid Copper Bonding Technology: Synopsys and Samsung Foundry are enabling scalable 3D multi-die designs through certified multiphysics signoff solutions delivered within Synopsys 3DIC Compiler, a unified exploration-to-signoff platform being validated on a Hybrid Copper Bonding (HCB) 3D test chip. The platform brings together planning, implementation, and multiphysics analysis to enable co-optimization across integrated compute, memory, and advanced packaging systems for Samsung's 3DIC solutions with HCB technology. By replacing manual, margin-based approaches with automated, AI-driven system optimization, the platform accelerates designer productivity while enhancing quality of results (QoR) for next-generation 3D AI designs. Expanded IP Portfolio on Advanced and Automotive Nodes Decreases Design Integration Risk: Synopsys offers the industry's broadest portfolio of IP across Samsung Foundry's advanced processes from 14nm, 8nm, and 5nm class processes to the latest titles for 4nm and second-generation 2nm supporting a wide range of applications for segments including high-performance computing, consumer electronics, mobile devices, and edge AI, as well as automotive applications at 5nm and 2nm class processes. Synopsys' broad portfolio of interface IP—including UCIe, PCIe 7.0, 112G/224G, MIPI, LPDDR6, DDR5 MRDIMM Gen2 and USB4, — and foundation IP—including embedded memories, logic libraries, GPIOs, as well as security IP and Silicon Lifecycle Management (SLM)— are optimized through the companies' long-standing collaboration to deliver trusted, low-risk solutions tailored to Samsung's processes to support faster time to market. SAFE Forum 2026 showcases the continued, deep collaboration between Synopsys and Samsung Foundry, driven by companies' shared commitment to co‑innovation and customer success at the most advanced nodes.
Follow Synopsys online for updates via our Newsroom, on LinkedIn, and on X.
Resources:
Overview: Synopsys and Samsung Collaboration Video: Synopsys and Samsung: Delivering Technology Breakthroughs Together Blog: Accelerating Multi-Die Innovation with Samsung Foundry 1 Compared to a previous version of Synopsys PrimeShield.
About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.
On May 28, 2026, Synopsys Inc SNPS shares fell 8.6% to $480.64, marking a significant decline amid a 52-week range of $376.18 to $651.73. This drop in share price highlights potential volatility and market sentiment regarding the company's performance.
GF Value™ verdict: Current price at $480.64 is 27.7% undervalued compared to GF Value™ of $664.53.GF Score™ of 95/100 signifies a strong overall ranking, indicating solid growth potential and financial health.No insider transactions were reported in the last three months, suggesting a neutral stance from insiders. Is SNPS Overvalued or Undervalued? With a current price of $480.64 and a GF Value™ estimate of $664.53, Synopsys Inc is positioned as 27.7% undervalued. This substantial margin of safety presents an intriguing opportunity for potential investors, especially in a market characterized by uncertainty. The GF Valuation label indicates that the stock is modestly undervalued, suggesting that it may offer some upside potential in the future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current valuation implies that the market may be undervaluing Synopsys Inc's growth prospects, which could be a point of interest for long-term strategic investors. However, it is essential to consider the risks tied to market conditions and potential fluctuations in the company's performance.
How Does SNPS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 111.3x 57.1x Forward P/E 33.2x - Currently, Synopsys Inc is trading at a trailing P/E (TTM) of 111.3x, which is 95% above its 5-year median P/E of 57.1x. The forward P/E of 33.2x indicates a more favorable outlook compared to the current trailing P/E. This analysis suggests that while the stock is trading significantly above its historical valuation metrics, the forward P/E might align more closely with the GF Value™ verdict, indicating potential future growth.
What Does SNPS's GF Score™ Tell Us? Metric Rating GF Score™ 95 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 8/10 The GF Score™ of 95/100 highlights Synopsys Inc's strong position, particularly in growth (10/10) and profitability (9/10). However, the financial strength score of 6/10 indicates some areas where the company may need to improve. The valuation score of 8/10 suggests that the stock may be priced fairly, while the momentum score of 8/10 reflects a solid market performance trend. Overall, the composite score portrays a company with robust growth potential but varying financial health, warranting careful consideration.
What Are Insiders Doing with SNPS Stock? Currently, there have been no insider transactions reported for Synopsys Inc in the last three months. This lack of activity suggests that insiders may be holding their positions, indicating confidence in the company's future prospects or a wait-and-see approach amidst market fluctuations.
What This Means for Investors Based on the assessment of GF Value™, Synopsys Inc SNPS is currently undervalued at a price of $480.64 compared to its GF Value™ of $664.53. This suggests potential growth opportunities, although investors should remain cautious and consider the broader market dynamics and the company's financial strength.
For the complete analysis, visit the Synopsys Inc SNPS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SNPS's GF Score™?
SNPS's GF Score™ is 95/100, indicating a strong overall ranking that suggests solid growth potential and financial health.
Is SNPS overvalued or undervalued?
SNPS is currently undervalued, with a GF Value™ estimate of $664.53 compared to its current price of $480.64.
What is SNPS's P/E ratio?
SNPS's P/E (TTM) is 111.3x, which is significantly higher than its historical median of 57.1x, indicating that the stock may be trading at a premium compared to its historical valuation.
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].
Synopsys, Inc. has exited a consolidation phase, with catalysts now favoring a bullish outlook and a rating upgrade from Hold to Buy. SNPS consistently outperforms sector and S&P 500 top-line growth, justifying its premium valuation and potential for further market rerating. While not the cheapest AI play, SNPS's strong revenue growth and sustained market share support its elevated earnings multiple.
Synopsys NASDAQ: SNPS is one of the world’s two leading players in the electronic design automation (EDA) industry, along with Cadence Design Systems NASDAQ: CDNS. The company plays a critical role in advanced semiconductor development. Without top-tier EDA software, creating leading-edge semiconductor designs is nearly impossible.
Synopsys Today
$453.89 -2.40 (-0.53%)
As of 04:00 PM Eastern
52-Week Range$376.18▼
$651.73P/E Ratio105.07
Price Target$563.81
Despite Synopsys’s importance, the stock has struggled to gain traction even as the artificial intelligence boom is in full swing. Since the beginning of 2025, Synopsys shares are essentially flat. This comes after the stock dived 8.6% following the company's latest earnings report.
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Although Synopsys shares fell significantly, analyst price targets moved in the opposite direction—implying a potential opportunity in shares. As the stock continues to underperform, all eyes will be on Synopsys’s Investor Day in September.
Synopsys Posts Beats and Lifts Guidance, But Ansys Drives GrowthIn its fiscal Q2 2026, Synopsys posted revenue of $2.28 billion. (Note that Synopsys’s fiscal reporting period is slightly ahead of the standard reporting period used by most companies.) This equated to revenue growth of 42% year-over-year (YOY) and beat estimates of $2.25 billion.
However, the vast majority of this growth was not organic but a product of Synopsys’s Ansys acquisition. Per the earnings call, growth would have been just 3% to 4% YOY excluding Ansys.
Meanwhile, Synopsys’s adjusted earnings per share (EPS) fell by nearly 9% YOY to $3.35, beating estimates of $3.15 substantially. This figure is tricky as well, as despite adjusted EPS falling, adjusted net income rose by 11% YOY. This difference came as Synopsys’s share count increased by around 23% YOY.
Synopsys issued a significant number of shares to fund the Ansys deal, as well as directly to NVIDIA NASDAQ: NVDA, which invested $2 billion in Synopsys. Long story short, Synopsys’s adjusted profit rose, even though it fell on a per-share basis.
Synopsys also raised its full-year guidance across multiple fronts. Based on midpoint figures:
Revenue guidance increased by $65 million to $9.665 billion.
Adjusted operating margin guidance increased by 50 basis points to 41%.
Adjusted EPS guidance increased by 34 cents to $14.76.
Free cash flow guidance increased by $100 million to $2 billion.
Despite strong postings on many headline metrics, investors likely viewed the fact that Ansys drove nearly all of Synopsys’s growth as a significant negative.
Analysts Move Targets Up as Shares FallSynopsys Stock Forecast Today12-Month Stock Price Forecast:
$563.81
24.02% Upside
Hold
Based on 17 Analyst Ratings
Current Price$454.61High Forecast$650.00Average Forecast$563.81Low Forecast$450.00Synopsys Stock Forecast Details
After earnings, MarketBeat tracked several analyst price target upgrades on Synopsys, while not seeing any targets move lower. Among updates for which MarketBeat had previous price target data, the average price target moved up by approximately 7%. This was a near inverse to the 8.6% hit shares took following the report. Still, analysts at BNP Paribas Exane placed an Underweight rating on the stock, while Piper Sandler issued a Hold rating.
Overall, the average price target among those issued after earnings was approximately $538. This is considerably lower than the MarketBeat consensus price target of $564, indicating that older targets are holding up the consensus figure. The updated $538 average implies moderate upside of about 10%.
Synopsys and Cadence Shares Are Lagging Big-TimeIt is a bit concerning to see Synopsys underperform the market so significantly. This comes as many semiconductor and AI-related stocks have surged. Since the start of 2025, the S&P 500 has delivered a return above 25%. Meanwhile, the iShares Semiconductor ETF NASDAQ: SOXX, a commonly used proxy for semiconductor industry performance, is up more than 150%.
Near-term issues, such as its Ansys acquisition clouding visibility and complications at Intel’s NASDAQ: INTC foundry (a key customer), have negatively affected Synopsys. However, Cadence—which has not suffered from the same issues—has also underperformed. Cadence shares are up only around 25% since the start of 2025.
Thus, the two top EDA stocks are experiencing significant underperformance, even as the industry in which they sit booms. This raises questions about their ability to capture value in the same way they have in the past.
Synopsys’s Investor Day: Its Key Opportunity to Reinspire InvestorsDespite Synopsys’s poor performance, its products continue to be essential to the semiconductor ecosystem. Additionally, Ansys visibility and Intel’s issues can smooth out over time.
On its earnings call, Synopsys repeatedly mentioned that it is looking for ways to capture more of the value its products offer customers. This includes new pricing methods for its intellectual property. Synopsys says it will have a few signed customer agreements under this model by the end of the fiscal year.
Additionally, as AI agents are increasingly used in chip design, Synopsys is working to capture more consumption-based revenue. However, the company said it would give more details about these strategies at its Investor Day at the end of September.
The firm’s Investor Day will likely be critical to convincing markets that Synopsys can alter its monetization strategies in a way that maximizes the value it captures. Evaluating its plan is critical before materially changing the positive long-term thesis on this stock.
Should You Invest $1,000 in Synopsys Right Now?Before you consider Synopsys, you'll want to hear this.
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Synopsys (NASDAQ:SNPS | SNPS Price Prediction) runs the software that designs the world’s most advanced chips. With AI workloads exploding and the $35 billion Ansys acquisition now fully integrated, this is arguably the most strategically positioned EDA franchise on the market.
Yet shares of Synopsys are up just 2.32% year to date, trading at $480.64. So can SNPS hit $700 by 2027? That is the question I want to answer.
What’s Holding Synopsys Back Right Now The honest answer: investors punished a beat-and-raise quarter. Shares fell 7% to 8.4% after Q2 FY2026 results despite revenue of $2.276 billion (up 42.0% YoY) and non-GAAP EPS of $3.35 beating the $3.1617 estimate. The market focused on Design IP weakness, where revenue fell 6% YoY as hyperscalers built proprietary IP.
GAAP net income collapsed to $17.1 million, crushed by $403.6 million in Ansys intangibles amortization. Shares are down 4.63% over the past week and 0.67% over the past month. With a beta of 1.245, drawdowns hit hard.
Wall Street Sees 13% Upside. Our Model Says More. The Street consensus target sits at $544.99, with 2 Strong Buy, 15 Buy, 7 Hold, 0 Sell, and 1 Strong Sell ratings. Our base case for May 2027 is $604.09, implying 25.68% upside, with a bull case of $680.80 and a bear case of $524.43.
Confidence on the base case is 90%, which I read as high conviction. My pushback on consensus is simple. Analysts are anchoring on the messy GAAP optics. With 68% bullish ratings already, the bar to expand multiples is lower than the Street is pricing.
The Path to $700 Per Share Reaching $700 from today’s price of $480.64 would require a gain of 45.6%. With forward EPS of $14.82, a price of $700 implies a forward P/E of 47x. Our base case of $604.09 already implies 36x, meaning the bold target requires 11x of additional multiple expansion.
That is a stretch. But the conditions for compression rather than expansion are quietly building. CEO Sassine Ghazi told investors, “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”
Citigroup just raised its target to $610 and Rosenblatt to $575. Add Elliott Management’s board seat for Jesse Cohn, which validates a margin improvement thesis. The primary risk: a prolonged Design IP decline that drags the growth narrative back down.
The Valuation Case for Synopsys Right Now At $480.64 against forward EPS of $14.82, SNPS trades at roughly 32x forward earnings. That looks expensive next to the broader market but cheap versus where EDA peers trade when revenue compounds at 40%-plus. Shares sit between the 52-week high of $651.73 and low of $376.18, with a 10-year return of 828.77%. That kind of long-term compounding is the bull case in one statistic.
Is $700 Realistic? Here’s My Take $700 by 2027 is a stretch. It demands 45.6% upside and 11.4x of additional multiple expansion above our base case.
Three things need to break right: Ansys synergies must flow through to GAAP margins, Design IP needs to stabilize, and China revenue has to recover in H2. Elliott’s activist pressure helps the margin story.
What derails it is a structural hyperscaler pivot away from licensed IP. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Synopsys could reach $700 in 2027.
Hyperscale cloud computing services and artificial intelligence model builders are increasingly turning to custom AI computer designs to optimize their systems. And that should be a tailwind for Synopsys (SNPS) stock.
"As the AI race continues and the move towards heterogeneous compute and the move towards COT (customer-owned tooling), we've got the exact portfolio that's going to help the industry continue to accelerate," Synopsys Chief Financial Officer Shelagh Glaser told Investor's Business Daily on Thursday.
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Hyperscalers and other companies are designing custom chips and complete systems to match their particular AI workloads, she said. Synopsys offers electronic design automation (EDA) tools and intellectual property to help them with their projects.
"We're exactly where all the action is happening in the industry," Glaser said.
Further, Synopsys is rolling out AI agents to assist designers with their work, she said.
"There's not enough engineering talent," Glaser said. "And we can actually fortify those teams and give them more resources with (AI) agents that allow them to manage the complexity."
Late Wednesday, Synopsys beat Wall Street's targets for its fiscal second quarter and with its outlook for the current quarter and full year. But Synopsys stock fell 8.6% to 480.64 on Thursday amid nitpicks about organic growth.
Synopsys Stock Nabs Price-Target Hikes On the stock market today, Synopsys stock dipped 1% to close at 475.62.
"Our opportunity is expanding as customers design increasingly complex systems from silicon to full-scale AI infrastructure and physical AI, requiring more integrated engineering solutions across design, simulation, and system validation," Chief Executive Sassine Ghazi said on a conference call with analysts late Wednesday.
At least eight Wall Street firms raised their price targets on Synopsys stock after the company's fiscal Q2 report.
BofA Securities analyst Vivek Arya reiterated his buy rating on Synopsys stock and upped his price target to 600 from 515.
In a client note, Arya said the Synopsys report was "quietly impressive" as the company works to integrate its recent acquisition of Ansys.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) disclosed an expanded strategic partnership with Synopsys (NASDAQ:SNPS) tied to a $2 billion strategic investment earlier this year, and February reporting on the chipmaker’s most recent 13F flagged Synopsys as one of NVIDIA’s top holdings in Q4 2025, alongside Intel. Synopsys itself confirmed a $2.0 billion private placement of stock in Q1 FY2026, with proceeds earmarked to accelerate debt repayment from the Ansys deal. For retirement-focused investors who track smart money, this is the rare strategic position where the buyer and the customer are the same entity.
What NVIDIA Bought, and Why It Matters NVIDIA is the world’s most important chip designer, and Synopsys is the company whose software it uses to design those chips. The $2 billion commitment lands as Synopsys digests its $35 billion Ansys acquisition, which closed in July 2025 and fused electronic design automation with physics-based simulation. CEO Jensen Huang has framed the moment plainly, calling the AI factory buildout “the largest infrastructure expansion in human history.” Every Blackwell 300 die, every Vera Rubin tile, and every networking ASIC NVIDIA ships runs through Synopsys tools first. Owning a stake in that toolchain is vertical integration without the operating risk.
The Thesis the Data Supports Synopsys is monetizing AI complexity directly. Q2 FY2026 revenue hit $2.28 billion, up 42% year over year, with non-GAAP EPS of $3.35 beating consensus by 5.96%. The Design Automation segment, roughly 80% of revenue, posted adjusted operating margins of 43.3%, up from 40.9% a year earlier. Management raised FY2026 revenue guidance to a midpoint of $9.665 billion and non-GAAP EPS to $14.72 to $14.80, with free cash flow targeted at roughly $2.0 billion. CEO Sassine Ghazi attributed the strength to “AI scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power.”
The thesis is reinforced by activist Elliott Investment Management, which acquired a multibillion-dollar stake and won a board seat for managing partner Jesse Cohn in May. Elliott is pushing for margins closer to Cadence’s, and the post-Ansys cost structure gives them room to deliver.
Returns So Far and the Retail Calculus Synopsys shares closed at $508.35 on June 2, 2026, up 9.05% over the past year and 8.22% year to date. That trails the broader AI complex, NVIDIA itself is up 62.23% over the past year, which is precisely why the setup is interesting. Analyst consensus carries a target of $560.38 with 17 Buy or Strong Buy ratings against 1 Strong Sell. Forward earnings multiple sits near 33, full but not extreme for a software business growing 42%.
The risks are real. Roughly $10 billion in long-term debt remains from the Ansys financing, the Design IP segment is being restructured around a planned Processor IP Solutions divestiture, and export controls remain a swing factor.
The Take Following NVIDIA into Synopsys warrants independent research and due diligence. The strategic logic is unambiguous: AI is making chip design exponentially harder, Synopsys sells the tools that solve that problem, and its largest customer just put $2 billion on the table to keep the roadmap moving. Retirement investors get a high-quality compounder with AI exposure that does not require betting on the next GPU cycle. The September 30, 2026 Investor Day is the next catalyst worth watching.
Synopsys (SNPS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of software used to test and develop chips have returned -1.3%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Computer - Software industry, which Synopsys falls in, has gained 6.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Synopsys is expected to post earnings of $3.64 per share, indicating a change of +7.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
The consensus earnings estimate of $14.49 for the current fiscal year indicates a year-over-year change of +12.2%. This estimate has changed -0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $16.99 indicates a change of +17.2% from what Synopsys is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Synopsys is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Synopsys, the consensus sales estimate for the current quarter of $2.44 billion indicates a year-over-year change of +40.1%. For the current and next fiscal years, $9.68 billion and $10.66 billion estimates indicate +37.2% and +10.1% changes, respectively.
Last Reported Results and Surprise HistorySynopsys reported revenues of $2.28 billion in the last reported quarter, representing a year-over-year change of +41.9%. EPS of $3.35 for the same period compares with $3.67 a year ago.
Compared to the Zacks Consensus Estimate of $2.25 billion, the reported revenues represent a surprise of +1.13%. The EPS surprise was +5.68%.
Over the last four quarters, Synopsys surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Synopsys is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Synopsys. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Synopsys (SNPS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Synopsys currently has an average brokerage recommendation (ABR) of 1.77, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.77 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 63.6% and 4.6% of all recommendations.
Brokerage Recommendation Trends for SNPS
Check price target & stock forecast for Synopsys here>>>
While the ABR calls for buying Synopsys, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SNPS Worth Investing In?Looking at the earnings estimate revisions for Synopsys, the Zacks Consensus Estimate for the current year has declined 0.3% over the past month to $14.49.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Synopsys. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Synopsys with a grain of salt.
Key Takeaways Synopsys embeds AI across products and workflows to automate engineering and boost productivity.Synopsys customers used DSO.ai in 700 tape-outs; VSO.ai reached up to 90% of SoC blocks.Synopsys says AI enables up to 50% faster knowledge help and 5x faster testbench generation. Synopsys (SNPS - Free Report) is gaining from a multi-trillion-dollar AI infrastructure buildout, driving strong system-level and semiconductor R&D spending and robust AI compute design activity. Synopsys is embedding AI across its product portfolio to automate engineering workflows and improve customer productivity.
Synopsys is looking at AI as a strategy that the company is implementing in multiple layers. Synopsys has implemented AI in its product layer, which it calls XSO.ai. Second is customer-specific AI, where customers train AI on their own workflow to create knowledge-assistant tools. Synopsys is also implementing Agentic generative AI now.
Synopsys also provides DSO.ai and VSO.ai. DSO.ai is an optimization engine focused on tape-outs, while VSO.ai is being used more deeply in SoC blocks and verification workflows. Synopsys’ customers have used DSO.ai to optimize more than 700 cumulative tape-outs, and VSO.ai has been deployed in up to 90% of SoC blocks on some chips.
Synopsys gains from decades of deep engineering expertise, proprietary codebases and solvers, silicon-proven design technologies and foundry co-optimization capabilities. The company has been able to provide its customers with up to 50% faster knowledge assistance, 70% faster workflow assistance and 5x faster formal testbench generation.
Synopsys is using AI in two ways, which include making chip design faster and better and preparing for a broader shift where AI becomes a more autonomous workflow layer across design, verification and simulation. These factors are likely to keep SNPS as one of the key contributors in the AI value chain in the long term.
How Competitors Fare Against SNPSSynopsys faces tough competition from EDA vendors, such as Cadence Design Systems Inc. (CDNS - Free Report) and Keysight Technologies (KEYS - Free Report) . These companies offer products focused more on distinct phases of the IC design process and provide a range of services to companies throughout the world to help optimize their product development process, among other things.
Keysight Technologies competes in the electronic design and testing space, particularly providing software solutions for electromagnetic analysis, circuit simulation and hardware verification. Cadence benefits from higher design complexity and rising customer spend on AI-driven automation.
Amid rapid AI proliferation, the Cadence.ai portfolio has been gaining strength, and the new product launches like AgentStack, along with ChipStack, ViraStack and InnoStack AI Super Agents, are expected to aid in sustaining the momentum.
SNPS’ Price Performance, Valuation and EstimatesShares of SNPS have gained 5.2% year to date against the Computer - Software industry’s decline of 10.2%
SNPS YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SNPS trades at a forward price-to-sales ratio of 9.23X, higher than the industry’s average of 7.1X.
The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.49, indicating 12% year-over-year growth. Estimates have been revised upward in the past seven days.
Image Source: Zacks Investment Research
SNPS currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
At $494.48, Synopsys (NASDAQ:SNPS | SNPS Price Prediction) looks constructive at current levels, with the chip design software leader trading well below its $651.73 52-week high as Wall Street fixates on accounting noise from the $35 billion Ansys acquisition rather than the agentic AI catalyst building underneath.
Synopsys sits at the center of every advanced chip designed on the planet. Its electronic design automation (EDA) software, paired with the Ansys acquisition that closed July 17, 2025, pushed the company from silicon design into full silicon-to-systems engineering. After a brutal 35.84% single-day drop on the Q3 FY2025 miss, the stock has stabilized as the integration story has shifted from risk to reward.
The Agentic AI Inflection Wall Street Is Underwriting at a Discount The bull case starts with raw demand. Q2 FY2026 revenue hit $2.275 billion, up 41.98% year over year, with non-GAAP EPS of $3.35 beating the $3.16 consensus by 5.96%. Management raised full-year guidance to a $9.665 billion revenue midpoint and $14.76 non-GAAP EPS midpoint, with free cash flow targeted at roughly $2.0 billion.
Design Automation, which makes up about 80% of revenue, expanded its adjusted operating margin to 43.3% from 40.9%. The hidden catalyst is the commercial ramp of Multiphysics Fusion software in late 2026, with dozens of major customers already testing specialized AI agents that compress chip design timelines by up to 3x. The Investor Day on September 30, 2026 is the likely catalyst for revealing long-term targets that anchor this story.
The Debt, Dilution, and GAAP Compression Bear Case Bears have a real argument. The Ansys deal saddled Synopsys with $10 billion in long-term debt, and quarterly GAAP results are buried under $403.6 million of intangibles amortization. Q2 GAAP net income collapsed 95.05% year over year to $17.1 million. The Design IP segment is being restructured around a planned divestiture, restructuring charges hit $234.2 million in H1 FY2026, and shareholder lawsuits over prior Design IP disclosures remain unresolved. A trailing P/E of 114 is not cheap on reported earnings.
The Case for Sitting on Hands The hold view is that the stock has gone nowhere fast. Shares are up 5.27% year to date and 4.5% over one year, well behind the S&P 500’s roughly 10.8% YTD gain. The 50-day moving average of $463.89 and 200-day of $467.86 signal consolidation, not a breakout. Patient investors could wait for the September Investor Day to remove ambiguity before committing fresh capital.
What the Numbers Say About the Setup Synopsys currently trades at $494.48 against a Wall Street consensus target of $560.38, implying roughly 13% upside. Analyst targets are guidance only. Of 25 analysts, 17 rate it Buy or Strong Buy, 7 Hold, and 1 Strong Sell. The forward P/E of 35 versus trailing P/E of 114 reflects expected earnings normalization as Ansys amortization rolls through. Institutional ownership sits at 90.89%.
Why $495 Looks Like a Constructive Setup Before the September Catalyst At $494.48, the setup for Synopsys looks constructive. Here is why.
The setup compresses three catalysts into the next four months. Q3 FY2026 guidance calls for revenue of $2.41 to $2.46 billion and non-GAAP EPS of $3.63 to $3.69, which would extend the beat streak. The September 30, 2026 Investor Day should quantify Ansys synergy targets and frame the agentic AI roadmap.
The risk/reward profile looks attractive up to $535. Downside is cushioned by the $11.4 billion backlog, $2 billion FCF run rate, and $3.46 billion in debt repayment during H1 FY2026. The thesis breaks if Design IP weakness widens or another Q3 FY2025-style miss surfaces.
Owning a dominant duopoly EDA franchise before its agentic AI moment, while GAAP optics still obscure the underlying engine, is the setup investors are weighing.
Synopsys (NASDAQ:SNPS | SNPS Price Prediction) is the picks-and-shovels king of the AI chip boom, and right now Wall Street is acting like it forgot. CEO Sassine Ghazi summed it up on the latest call: “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”
Yet Synopsys is down 1.04% YTD and sitting at $464.85. The question I want to answer: can SNPS reclaim $600 by March 2027?
What’s Holding Synopsys Back Right Now The disconnect is real. Q2 FY26 revenue grew 42% YoY to $2.28 billion and non-GAAP EPS of $3.35 beat the $3.16 estimate. So why is the stock down 7.84% over the past month and 2.26% over the past week?
Three reasons. First, the $35 billion Ansys deal loaded the balance sheet with roughly $10 billion in long-term debt, and integration risk is real.
Second, the Design IP segment is softening, with a planned Processor IP Solutions divestiture.
Third, Zacks slapped a Rank #4 (Sell) on the name, flagging premium valuation and margin compression. With a beta of 1.214, every macro tremor gets amplified here.
Wall Street Sees 21% Upside. Our Model Says More The Street consensus target is $560.38, with 2 Strong Buy, 15 Buy, 7 Hold, 0 Sell, and 1 Strong Sell ratings. That’s 68% bullish sentiment, but I think it’s still too cautious.
Our base case lands at $568.87 for 22.38% upside, with a confidence score of 90% (high). The bull case prints $669.53, the bear case $499.78. The consensus is anchoring on FY26 as a trough year and missing the FY27 synergy ramp.
The Path to $600 Per Share Here is the math. Reaching $600 from today’s price of $464.85 would require a gain of 29.1%.
With forward EPS of $14.86, a price of $600 implies a forward P/E of 40x. Our base case of $568.87 already implies 35x, meaning the bold target requires 6x of additional multiple expansion.
Is that achievable? I think yes, and here’s why. Three live catalysts feed expansion: the Samsung Foundry expansion validating AI design flows on 2nm nodes, the Monte Independent thesis calling for significant FY27 revenue and cost synergies from Ansys, and Norges Bank’s new $730 million position signaling institutional conviction.
Management raised FY26 guidance to EPS of $14.72 to $14.80. The primary risk is a delayed Ansys integration that pressures margins into FY27.
Where Synopsys Trades Today vs Its Earnings Power SNPS trades at roughly 31x forward earnings against a 52-week range of $376.18 to $651.73. The stock is sitting 14% below its 52-week high, smack in the mid-range. Over 10 years, SNPS has returned 781.07%. That is the real earnings power story. Compared to the trailing P/E of 106x, the forward multiple looks reasonable if you believe FY27 EPS estimates.
$600 Is a Stretch, But Here’s Why It’s Possible $600 requires a 29.1% gain from here. My honest verdict: realistic, not guaranteed.
Three things need to go right. Ansys synergies have to start showing in the FY27 guide, Design IP weakness must stabilize, and AI-driven EDA bookings need to keep compounding. What derails it is an Entity List escalation that throttles China exposure. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Synopsys could reach $600 in 2027.
Key Takeaways Synopsys Design IP revenues fell to $454.2M in fiscal Q2 2026 from $482M a year earlier.SNPS is shifting resources toward AI markets, including custom silicon and hyperscaler demand.Synopsys expects second-half recovery from growth in UCIe, HBM4 and AI silicon IP offerings. Synopsys’ (SNPS - Free Report) Design IP segment faced pressure in the second quarter of fiscal 2026. Revenues declined to $454.2 million from $482 million in the year-ago quarter, while adjusted operating margin fell to 24% from 31%. The weakness was not limited to a single quarter, as the segment’s adjusted operating margin for the first six months of fiscal 2026 was 21%, down from 30% in the same period last year.
Furthermore, Synopsys continues to carry a sizable debt load following its recent acquisitions and strategic investments. As of April 30, 2026, the company had $10.014 billion in long-term debt compared with $2.484 billion in cash, cash equivalents and short-term investments. The debt burden is contributing to higher financing costs, affecting the bottom line.
The Design IP segment experienced margin pressure in the second quarter of fiscal 2026 as Synopsys continued to reposition the business toward higher-growth artificial intelligence opportunities. Management attributed the decline primarily to reduced revenues as resources are being reallocated toward the most attractive AI-driven markets, including custom silicon and hyperscaler demand.
Despite the near-term weakness, Synopsys expects the IP business to recover sequentially through the second half of fiscal 2026, supported by its expanding pipeline in high-speed connectivity, UCIe, HBM4 memory interfaces and customized AI silicon solutions. As these premium offerings gain traction, the company believes the Design IP business will generate higher-value engagements and stronger long-term profitability, making the current margin pressure largely an investment in future growth.
How Competitors Fare Against SNPSSynopsys faces tough competition from EDA vendors, such as Cadence Design Systems Inc. (CDNS - Free Report) and Keysight Technologies (KEYS - Free Report) . These companies offer products focused more on distinct phases of the IC design process and provide a range of services to companies throughout the world to help optimize their product development process, among other things.
Keysight Technologies competes in the electronic design and testing space, particularly providing software solutions for electromagnetic analysis, circuit simulation and hardware verification. Cadence benefits from higher design complexity and rising customer spend on AI-driven automation.
Amid rapid AI proliferation, the Cadence.ai portfolio has been gaining strength, and the new product launches like AgentStack, along with ChipStack, ViraStack and InnoStack AI Super Agents, are expected to aid in sustaining the momentum.
SNPS’ Price Performance, Valuation and EstimatesShares of SNPS have lost 2.9% year to date compared with the Zacks Computer - Software industry’s decline of 19.6%.
SNPS YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SNPS trades at a forward price-to-sales ratio of 8.50X, higher than the industry’s average of 6.35X.
The Zacks Consensus Estimate for SNPS’ fiscal 2026 earnings is pegged at $14.75, indicating 14.3% year-over-year growth. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
SNPS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
