Track market-moving stories before they get noisy

A month has gone by since the last earnings report for Kraft Heinz (KHC - Free Report) . Shares have lost about 5% in that time frame, underperforming the S&P 500.

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

Kraft Heinz Q1 Earnings Beat Estimates Despite Organic Sales DipThe Kraft Heinz Company posted first-quarter 2026 results, wherein it posted adjusted earnings of 58 cents per share, beating the Zacks Consensus Estimate of 50 cents. Quarterly adjusted earnings fell 6.5% year over year, mainly due to lower adjusted operating income, partially offset by reduced tax expenses on adjusted earnings.

The company generated net sales of $6,047 million, up 0.8% year over year. The metric beat the Zacks Consensus Estimate of $5,908 million. The increase included a favorable 1.9 percentage-point impact from foreign currency, partially offset by a 0.7 percentage-point drag from divestitures. However, organic net sales declined 0.4% compared with the prior-year period. Our model expected a 3.2% dip in organic sales.

Pricing contributed positively, rising 0.8 percentage points across all segments, mainly driven by price increases in select categories to offset higher input costs. In contrast, volume/mix fell 1.2 percentage points, with declines across all segments. This weakness was largely due to reduced demand in coffee, cold cuts and Indonesia, which outweighed gains from seasonal factors such as the shift in Easter timing.

The adjusted gross profit of $2,064 million increased from the $2,061 million reported in the year-ago quarter. However, adjusted gross margin contracted 30 bps to 34.1%. We expected an adjusted gross margin decline of 120 bps to 33.1%. Adjusted operating income declined 11.8% year over year to $1,058 million. The drop was primarily caused by higher advertising expenses, inflationary pressures in manufacturing and logistics that exceeded efficiency gains, and unfavorable volume/mix. These headwinds more than offset the benefits from higher pricing, one-time procurement cost recoveries and favorable foreign currency effects.

Decoding KHC’s Segment-Wise ResultsNorth America: Net sales of $4,458 million declined 0.7% year over year. Organic sales fell 1.1%. We expected a 4% decline in segment organic sales. During the quarter, pricing increased 0.4 percentage points and the volume/mix fell 1.5 percentage points.

International Developed Markets: Net sales of $843 million were up 3.2% year over year. Organic sales declined 0.1%, with pricing up 0.2 percentage points and volume/mix dipping 0.3 percentage points. We expected a 3.6% decline in segment organic sales.

Emerging Markets: Net sales of $746 million were up 7.6% year over year. Organic sales grew 3.8%. We expected 2.2% growth in segment organic sales. Pricing was up 4.4 percentage points, but volume/mix declined 0.6 percentage points.

Kraft Heinz: Other Financial Aspects & GuidanceKraft Heinz ended the quarter with cash and cash equivalents of $3,308 million, long-term debt of $19,223 million and total shareholders’ equity (excluding noncontrolling interest) of $41,923 million. Net cash provided by operating activities was $1,006 million for the three months ended March 28, 2026, and free cash flow was $766 million. The company returned $474 million to its shareholders through cash dividends in the first quarter. Kraft Heinz did not repurchase any shares under its existing buyback program. As of March 28, 2026, KHC had approximately $1.5 billion remaining under its authorized repurchase capacity.

For 2026, Kraft Heinz still expects organic net sales to decline 1.5% to 3.5% year over year, indicating an estimated 100 bps impact from incremental SNAP-related headwinds.

Constant currency adjusted operating income is projected to decline 14% to 18%. Adjusted gross profit margin is expected to decrease 25-75 bps compared with the prior year. The company anticipates adjusted EPS to be between $1.98 and $2.10.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresAt this time, Kraft Heinz has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

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

Outlook Kraft Heinz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerKraft Heinz is part of the Zacks Food - Miscellaneous industry. Over the past month, Sysco (SYY - Free Report) , a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Sysco reported revenues of $20.52 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.94 for the same period compares with $0.96 a year ago.

Sysco is expected to post earnings of $1.51 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sysco. Also, the stock has a VGM Score of B.

Kraft Heinz (KHC - Free Report) closed the most recent trading day at $24.05, moving +2.65% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.

The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen an increase of 0.26% over the last month, not keeping up with the Consumer Staples sector's gain of 0.43% and outstripping the S&P 500's loss of 0.03%.

Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. It is anticipated that the company will report an EPS of $0.53, marking a 23.19% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.12 billion, showing a 3.59% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $24.43 billion. These totals would mark changes of -20.38% and -2.06%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, the Zacks Consensus EPS estimate has shifted 0.1% upward. Kraft Heinz presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 11.34. This expresses a discount compared to the average Forward P/E of 12.47 of its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 company value investors might notice is DaVita (DVA - Free Report) . DVA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.65, while its industry has an average P/E of 16.95. DVA's Forward P/E has been as high as 15.44 and as low as 10.48, with a median of 13.17, all within the past year.

Investors will also notice that DVA has a PEG ratio of 0.83. 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. DVA's industry currently sports an average PEG of 1.59. DVA's PEG has been as high as 1.09 and as low as 0.69, with a median of 0.87, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVA has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.19.

These are just a handful of the figures considered in DaVita's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVA is an impressive value stock right now.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many 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? 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.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

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

Growth 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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

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

Stock to Watch: DaVita HealthCare (DVA - Free Report) Denver, CO-headquartered DaVita Inc. is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD). The company operates outpatient dialysis centers and provides related services primarily in its dialysis centers and contracted hospitals across the United States, in addition to offering integrated kidney care services under value-based arrangements. Its services include outpatient dialysis services, hospital inpatient dialysis services and certain ancillary services.

DVA is a #1 (Strong Buy) 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 12.98; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.91 to $15.07 per share. DVA boasts an average earnings surprise of +2.4%.

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

Key Takeaways DaVita posted stronger quarterly revenue and earnings, lifting full-year adjusted EPS outlook.DVA expects higher treatment volumes from favorable patient trends and competitor clinic closures.DVA funds buybacks and IKC growth with strong cash flow, but compensation, insurance and IT costs rise. DaVita Inc.’s (DVA - Free Report) investors have been experiencing some short-term gains from the stock lately. Shares of the Denver, CO-based provider of dialysis services in the United States to patients suffering from chronic kidney failure gained 21.4% in the past three months against the industry’s 5.7% decline. It has also outperformed the sector’s loss of 8.7% and the S&P 500’s gain of 10.9% in the same time frame.

A major recent development of DVA includes the announcement of its first-quarter results last month.

DaVita reported strong first-quarter 2026 results, with improvements in revenues, earnings and operating income. The increase in treatment volume per normalized day and higher reimbursement rates during the quarter were encouraging. DVA also raised its 2026 adjusted operating income and earnings per share (EPS) guidance, reflecting confidence in its business momentum. However, patient care costs and IT-related expenses increased year over year, while revenue per treatment (RPT) declined sequentially. Rising operating costs may continue to weigh on margins going forward, which does not bode well for the stock.

DVA's Three Months Price Comparison
Image Source: Zacks Investment Research

Over the past three months, the stock’s performance has remained strong, outperforming its peers like Fresenius Medical Care AG (FMS - Free Report) . However, it underperformed its peer, Outset Medical, Inc. (OM - Free Report) . Fresenius Medical and Outset Medical’s shares have lost 10.8% and gained 43.6%, respectively, in the same time frame.

For 2026, DaVita expects RPT to reflect growth of 1%-2%, while treatment volume is expected to be higher compared with 2025.

Adjusted EPS from continuing operations for the full year is projected to be in the range of $14.10-$15.20. The Zacks Consensus Estimate for the metric is currently pegged at $15.07.

For the second quarter of 2026, the Zacks Consensus Estimate for adjusted EPS is pegged at $4.01.

DVA’s Strengthening Core Dialysis FranchiseDaVita continues to benefit from annual reimbursement increases across Medicare and commercial contracts, supporting revenue growth despite normal seasonal fluctuations. The company’s large dialysis network and exposure to higher-paying commercial plans provide a stable revenue base, while early ACA enrollment trends have been better than management's prior expectations, potentially easing previously anticipated reimbursement pressures.

Treatment volumes exceeded management’s expectations in the first quarter of 2026, aided by favorable patient trends and lower-than-anticipated mortality. DVA also expects to benefit from patient transfers associated with competitor clinic closures, prompting it to raise its full-year treatment growth outlook. Sustained volume growth remains a key driver of revenue and earnings expansion.

Better labor productivity also helped the company keep patient-care costs below expectations, highlighting the effectiveness of DaVita’s operating model. The company is also investing in digital infrastructure and AI-enabled tools to improve scheduling, workforce utilization and administrative efficiency. These initiatives are expected to support DVA’s margin durability and create additional operating leverage over time.

DaVita’s Value-Based Care and Cash Flow StrengthIntegrated Kidney Care (IKC) remains an important long-term growth avenue for DaVita. The business continues to demonstrate strong performance in value-based care programs through improved quality outcomes and savings generation. As DVA expands its risk-based care arrangements and strengthens physician partnerships, it is building a more diversified and sustainable kidney-care ecosystem.

Strong operating and free cash flow generation provides DaVita with ample financial flexibility. The company has remained aggressive in repurchasing shares while maintaining leverage within its target range, underscoring management’s disciplined capital allocation strategy. Consistent cash generation and buybacks continue to enhance shareholder value and support investor sentiment toward the stock.

Challenges Ahead of DVAA key challenge for DaVita is the continued rise in operating expenses, particularly compensation, insurance and technology-related costs, which could pressure margins despite ongoing productivity improvements. Another concern is DVA’s dependence on commercial insurance plans for a significant share of its profits. Any decline in commercially insured patients, unfavorable reimbursement changes or shifts in plan mix could materially affect revenue growth and profitability, given the substantial gap between commercial and government reimbursement rates.

DaVita Stock’s ValuationDVA’s forward 12-month P/S of 0.83X is lower than the industry’s average of 2.67X but is higher its five-year median of 0.79X.

Image Source: Zacks Investment Research

Fresenius Medical and Outset Medical’s forward 12-month P/S currently stand at 0.47X and 0.71X, respectively, in the same time frame.

DVA’s Estimate MovementEstimates for DaVita’s 2026 earnings have moved 6.4% north to $15.07 in the past 60 days.

Image Source: Zacks Investment Research

Estimates for Fresenius Medical’s 2026 EPS have moved 7.4% south to $2.24 in the past 60 days.

Estimates for Outset Medical’s 2026 loss per share have widened from $2.83 to $2.88 in the past 60 days.

Our Final Take on DaVitaDaVita, a Zacks Rank #1 (Strong Buy) stock, remains well positioned to benefit from its leadership in the U.S. dialysis market, improving treatment volumes and expanding value-based care initiatives. The company’s strong operational execution, productivity gains and ongoing technology investments are supporting earnings growth while enhancing its long-term competitive position. Its IKC platform also offers an additional growth avenue beyond traditional dialysis services. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, investors should monitor rising labor, insurance and technology-related expenses, which could pressure margins over time. DVA’s reliance on commercial payors for a significant portion of its profits also exposes it to reimbursement and insurance-mix risks.

From a valuation standpoint, the stock appears reasonably priced relative to its business fundamentals and growth prospects. The current valuation suggests that the market has yet to fully recognize the benefits of improving treatment volumes, operational efficiencies and disciplined capital allocation. This leaves room for further upside if management continues to execute effectively.

For existing shareholders, the stock remains an attractive long-term holding. Prospective investors can also consider building positions, as DaVita’s improving fundamentals, favorable earnings momentum suggest that the recent rally may not yet be over. The favorable Zacks Style Score with a Growth Score of B suggests continued uptrend potential for DVA.

Key Takeaways DaVita provides dialysis via outpatient centers, hospitals and home hemo/peritoneal options.DaVita's IKC coordinates advanced CKD/ESKD care; CKCC showed progress in quality and savings.FMS exceeded 100,000 5008X treatments, while OM preps next-gen Tablo cleared under the FDA's 2025 cyber rules DaVita Inc. (DVA - Free Report) is a key player in the dialysis space, providing comprehensive kidney care services to patients with chronic kidney disease (CKD) and end-stage kidney disease (ESKD). The company’s core business centers on delivering dialysis treatment through a broad network of outpatient dialysis centers, hospital-based services and home-based modalities, including home hemodialysis and peritoneal dialysis. By supporting patients across multiple care settings — from dialysis clinics and hospitals to home environments — DVA plays an important role in ensuring access to life-sustaining renal care while helping patients navigate different treatment options throughout their kidney health journey.

The company has also expanded beyond traditional dialysis delivery to strengthen its presence across the broader kidney care continuum. Through its Integrated Kidney Care (IKC) platform, DaVita coordinates care for patients with advanced CKD and ESKD, working alongside physicians and healthcare providers to improve clinical outcomes and support earlier intervention. Recent results from the Comprehensive Kidney Care Contracting (CKCC) program demonstrated continued progress in quality and savings measures, highlighting the growing role of value-based kidney care models in the dialysis industry.

DaVita continues to invest in technology and operational capabilities that support its dialysis network. During 2026, the company highlighted ongoing investments in digital infrastructure and AI-enabled tools, including new scheduling technologies designed to improve care delivery and operational efficiency. These initiatives reinforce DVA’s position as a leading dialysis services provider while supporting the industry's broader shift toward integrated, patient-centered kidney care.

FMS & OM Expanding Innovation Across Dialysis CareFresenius Medical Care AG (FMS - Free Report) is a renowned player in the dialysis ecosystem, combining dialysis care delivery with the manufacture of dialysis products and equipment. FMS provides treatment for CKD and end-stage renal disease through its Care Delivery, Care Enablement and Value-Based Care segments.

In 2026, Fresenius Medical Care accelerated the rollout of its 5008X CAREsystem in the United States, reaching around 100 clinics and surpassing 100,000 treatments. Fresenius Medical Care also launched kinexus, a unified global digital platform that supports home dialysis programs by integrating remote therapy monitoring, prescription management and supply ordering across peritoneal dialysis and home hemodialysis therapies.

Outset Medical, Inc. (OM - Free Report) is directly involved in the dialysis space through its Tablo Hemodialysis System, a technology platform designed to simplify dialysis delivery across hospitals, clinics and home settings. Outset Medical focuses on improving dialysis outcomes while reducing cost and complexity for providers and patients.

During 2026, Outset Medical continued expanding Tablo adoption across acute and post-acute care facilities and prepared for the launch of its next-generation Tablo platform. The new system, which OM believes is the first dialysis system cleared under the FDA’s 2025 cybersecurity requirements, incorporates hardware and software enhancements aimed at improving performance, reliability and patient safety while supporting broader dialysis care delivery.

DVA’s Price Performance, Valuation and EstimatesShares of DaVita have gained 71.6% year to date compared with the industry’s rise of 5.3%.

Image Source: Zacks Investment Research

DVA’s forward 12-month P/E of 11.8X is lower than the industry’s average of 16.9X and its five-year median of 12.7X. It has a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DVA’s 2026 earnings per share suggests a 39.8% improvement compared with 2025.

Image Source: Zacks Investment Research

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

Key Takeaways DVA served 296,300 patients through 3,262 outpatient dialysis centers worldwide as of March 31, 2026.DaVita's IKC platform covered 62,600 patients and represents about $5.4 billion in annualized medical spend.BAX backs renal care via its medical products, while RMTI signed a 3-year supply deal with Heritage Dialysis. DaVita Inc. (DVA - Free Report) , a well-known kidney care services provider, is focused on delivering dialysis treatment and integrated care solutions for patients with chronic and end-stage kidney disease. As of March 31, 2026, the company was serving 296,300 patients through 3,262 outpatient dialysis centers worldwide, underscoring its significant presence in the global renal care market. In first-quarter 2026, DVA delivered more than 7 million dialysis treatments and continued to expand its Integrated Kidney Care (IKC) platform, which covered 62,600 patients in risk-based care arrangements.

Beyond its core dialysis operations, DaVita is increasingly emphasizing coordinated and value-based care to improve outcomes for kidney disease patients. The company reported continued momentum in its IKC business, which represents approximately $5.4 billion in annualized medical spend under risk-based arrangements. This reflects DVA's broader strategy of managing patient care across the kidney disease space while supporting long-term healthcare efficiency and quality outcomes.

Recent developments highlight the company's focus on innovation and care coordination. DaVita reported year-over-year improvements across key measures in the Comprehensive Kidney Care Contracting (CKCC) program and generated the highest aggregate savings among participants in first-quarter 2026. DVA is also investing in technology-driven initiatives, including the rollout of its AI-enabled ScheduleHub tool, designed to optimize patient scheduling and staffing while enhancing operational efficiency and supporting clinical excellence.

BAX & RMTI Supporting the Broader Renal Care EcosystemBaxter International Inc. (BAX - Free Report) remains connected to the renal care ecosystem through products that continue to be used in kidney dialysis centers and other healthcare settings. While Baxter completed the sale of its Kidney Care business, now known as Vantive, in January 2025, BAX still serves healthcare providers through its broad portfolio of medical products and therapies.

Recent developments reflect Baxter’s ongoing focus on operational improvement and innovation, with the company advancing connected-care offerings, including smart bed systems, patient monitoring technologies, infusion systems and respiratory health devices, while continuing to support providers across a range of care settings.

Rockwell Medical, Inc. (RMTI - Free Report) is a dedicated renal care company focused on developing, manufacturing and distributing hemodialysis products for dialysis providers worldwide. Rockwell Medical supplies a broad portfolio of dialysis concentrates and related products that support patients with end-stage kidney disease.

Recent developments include Rockwell Medical's new three-year supply agreement with Heritage Dialysis and the renewal of its agreement with aQua Dialysis, strengthening its presence in both in-center and home dialysis markets. RMTI also continues to focus on operational improvements, profitability and long-term growth within the dialysis industry.

DVA’s Price Performance, Valuation and EstimatesShares of DaVita have gained 74.4% year to date compared with the industry’s rise of 8.5%.

Image Source: Zacks Investment Research

DVA’s forward 12-month P/E of 11.9X is lower than the industry’s average of 17.4X and its five-year median of 12.7X. It has a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DVA’s 2026 earnings per share suggests a 39.8% improvement compared with 2025.

Image Source: Zacks Investment Research

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

DaVita HealthCare (DVA - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for DaVita HealthCare basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for DaVita HealthCare imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for DaVita HealthCareThis kidney dialysis provider is expected to earn $15.07 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for DaVita HealthCare. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.4%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of DaVita HealthCare to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Posted by Defense World Staff on Mar 30th, 2026

Shares of VeriSign, Inc. (NASDAQ:VRSN – Get Free Report) have received an average rating of “Moderate Buy” from the five research firms that are covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $292.00.

A number of research analysts have commented on the company. JPMorgan Chase & Co. increased their price objective on VeriSign from $270.00 to $271.00 and gave the company a “neutral” rating in a research report on Tuesday, January 6th. Weiss Ratings raised VeriSign from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday. Zacks Research upgraded VeriSign from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, Citigroup lowered their price objective on VeriSign from $337.00 to $280.00 and set a “buy” rating for the company in a research report on Monday, February 9th.

Read Our Latest Report on VeriSign

Insider Activity at VeriSign In related news, EVP Thomas C. Indelicarto sold 332 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $240.62, for a total transaction of $79,885.84. Following the completion of the sale, the executive vice president directly owned 39,696 shares of the company’s stock, valued at $9,551,651.52. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO D James Bidzos sold 2,000 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $248.28, for a total transaction of $496,560.00. Following the completion of the transaction, the chief executive officer owned 414,099 shares in the company, valued at $102,812,499.72. This represents a 0.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 9,490 shares of company stock valued at $2,338,621. 0.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in VeriSign by 8.1% in the third quarter. Vanguard Group Inc. now owns 11,443,710 shares of the information services provider’s stock valued at $3,199,318,000 after purchasing an additional 861,065 shares during the last quarter. State Street Corp boosted its holdings in VeriSign by 8.2% during the third quarter. State Street Corp now owns 4,253,980 shares of the information services provider’s stock worth $1,189,285,000 after buying an additional 321,737 shares during the last quarter. AQR Capital Management LLC boosted its holdings in VeriSign by 14.1% during the fourth quarter. AQR Capital Management LLC now owns 4,020,169 shares of the information services provider’s stock worth $976,700,000 after buying an additional 496,674 shares during the last quarter. Invesco Ltd. increased its stake in shares of VeriSign by 19.8% in the 4th quarter. Invesco Ltd. now owns 1,491,035 shares of the information services provider’s stock valued at $362,247,000 after acquiring an additional 246,887 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of VeriSign in the 4th quarter valued at about $312,900,000. 92.90% of the stock is currently owned by institutional investors.

VeriSign Stock Performance Shares of VRSN stock opened at $247.48 on Friday. VeriSign has a 1 year low of $208.86 and a 1 year high of $310.60. The firm’s 50 day moving average is $235.59 and its 200-day moving average is $248.59. The firm has a market capitalization of $22.69 billion, a price-to-earnings ratio of 28.09 and a beta of 0.76.

VeriSign (NASDAQ:VRSN – Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The information services provider reported $2.23 earnings per share for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.06). VeriSign had a net margin of 49.84% and a negative return on equity of 40.40%. The company had revenue of $425.30 million during the quarter, compared to analyst estimates of $424.04 million. During the same period in the prior year, the business earned $2.00 EPS. The business’s revenue for the quarter was up 7.6% on a year-over-year basis.

VeriSign Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Thursday, February 19th were paid a $0.81 dividend. This is a boost from VeriSign’s previous quarterly dividend of $0.77. The ex-dividend date of this dividend was Thursday, February 19th. This represents a $3.24 annualized dividend and a dividend yield of 1.3%. VeriSign’s payout ratio is 36.78%.

VeriSign Company Profile (Get Free Report)

VeriSign, Inc (NASDAQ: VRSN) is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign’s registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.

In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.

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Posted by Defense World Staff on Apr 5th, 2026

Perpetual Ltd increased its holdings in VeriSign, Inc. (NASDAQ:VRSN – Free Report) by 159.6% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,150 shares of the information services provider’s stock after purchasing an additional 5,626 shares during the quarter. Perpetual Ltd’s holdings in VeriSign were worth $2,223,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in VRSN. SteelPeak Wealth LLC acquired a new position in VeriSign in the fourth quarter worth approximately $2,037,000. Earned Wealth Advisors LLC lifted its position in shares of VeriSign by 16.6% during the 4th quarter. Earned Wealth Advisors LLC now owns 2,733 shares of the information services provider’s stock valued at $664,000 after acquiring an additional 390 shares during the last quarter. Bank Pictet & Cie Europe AG boosted its stake in shares of VeriSign by 3.6% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 1,661 shares of the information services provider’s stock worth $404,000 after acquiring an additional 57 shares in the last quarter. Foster & Motley Inc. boosted its stake in shares of VeriSign by 8.8% during the 4th quarter. Foster & Motley Inc. now owns 16,317 shares of the information services provider’s stock worth $3,964,000 after acquiring an additional 1,316 shares in the last quarter. Finally, Mn Services Vermogensbeheer B.V. grew its holdings in shares of VeriSign by 1.5% in the 4th quarter. Mn Services Vermogensbeheer B.V. now owns 32,171 shares of the information services provider’s stock worth $7,816,000 after acquiring an additional 471 shares during the last quarter. 92.90% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets Several brokerages have recently commented on VRSN. Weiss Ratings raised VeriSign from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 27th. Citigroup lifted their price target on VeriSign from $280.00 to $295.00 and gave the stock a “buy” rating in a research note on Thursday. JPMorgan Chase & Co. upped their price objective on shares of VeriSign from $270.00 to $271.00 and gave the company a “neutral” rating in a research note on Tuesday, January 6th. Finally, Zacks Research upgraded shares of VeriSign from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, VeriSign currently has a consensus rating of “Moderate Buy” and a consensus price target of $297.00.

Read Our Latest Stock Analysis on VRSN

Insider Buying and Selling In other news, CEO D James Bidzos sold 2,000 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $248.28, for a total value of $496,560.00. Following the completion of the sale, the chief executive officer directly owned 414,099 shares of the company’s stock, valued at $102,812,499.72. This represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Thomas C. Indelicarto sold 332 shares of the firm’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $240.62, for a total transaction of $79,885.84. Following the sale, the executive vice president owned 39,696 shares of the company’s stock, valued at approximately $9,551,651.52. This represents a 0.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,490 shares of company stock valued at $2,338,621 over the last three months. 0.84% of the stock is owned by insiders.

VeriSign Price Performance VRSN opened at $259.85 on Friday. The firm has a market capitalization of $23.83 billion, a P/E ratio of 29.49 and a beta of 0.70. The stock has a fifty day moving average of $235.92 and a 200-day moving average of $247.68. VeriSign, Inc. has a 12-month low of $208.86 and a 12-month high of $310.60.

VeriSign (NASDAQ:VRSN – Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The information services provider reported $2.23 earnings per share for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.06). The business had revenue of $425.30 million for the quarter, compared to analysts’ expectations of $424.04 million. VeriSign had a net margin of 49.84% and a negative return on equity of 40.40%. The business’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.00 EPS.

VeriSign Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Thursday, February 19th were issued a $0.81 dividend. The ex-dividend date was Thursday, February 19th. This represents a $3.24 dividend on an annualized basis and a dividend yield of 1.2%. This is a positive change from VeriSign’s previous quarterly dividend of $0.77. VeriSign’s dividend payout ratio is currently 36.78%.

VeriSign Profile (Free Report)

VeriSign, Inc (NASDAQ: VRSN) is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign’s registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.

In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.

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Warren Buffett is known for investing in companies with legal monopolies. That makes VeriSign (VRSN +0.11%) a natural fit for Berkshire Hathaway's portfolio, which Buffett oversaw until he stepped down as CEO at the end of last year.

VeriSign operates in the background of the internet, providing registration services for domains such as .com and .net, and Berkshire owns a 9.8% stake in the company -- a position it began building over a decade ago.

Considering VeriSign's firm grip on domain registration and the constant cash flow that it offers, is it worth considering the stock for your personal portfolio?

Image source: Getty Images.

The online traffic director In addition to its domain registration operations, VeriSign oversees two of the world's 13 root servers that help direct internet traffic, creating a large infrastructure moat that isn't easily disrupted. That moat also generates a lot of cash. In 2025, VeriSign reported $1.6 billion in revenue and $826 million in net income, both increases from 2024's totals.

Business has been good for VeriSign, but it is more of a mature operation than one with a roster of significant growth drivers. As some business owners shift from using websites to relying mainly on social media, domain registrations may face a noticeable slowdown.

That's reflected in domain base growth projections. Domain base growth is only expected to increase between 1.5% and 3.5% in 2026, with revenue projected to steadily climb, rather than explode higher.

Today's Change

(

0.11

%) $

0.32

Current Price

$

279.89

With those numbers in mind and also considering VeriSign's forward price-to-earnings (P/E) ratio of 27.7, it appears investors may be paying up for the reliable, steady cash flow more than anything else. For comparison, Nvidia has a forward P/E ratio of 21.5. There's nothing wrong with investing in a maturing business, but VeriSign doesn't scream "value" at its current valuation.

There is, however, a Buffett play inside the Berkshire portfolio that does.

Consider this Buffett investment instead For a Buffett pick at a more attractive valuation, consider Sirius XM Holdings (SIRI 0.25%). Berkshire owns around 37% of the company.

Sirius may not be a pure audio monopoly given the intense competition in the streaming market, but it does exhibit monopolistic characteristics. In 2007, there were only two businesses authorized by the Federal Communications Commission to provide satellite radio service in the U.S. before the merger of Sirius Satellite Radio and XM Satellite Radio Holdings formed SiriusXM Holdings.

It's also building a moat through content, offering shows and stations that you can only find on its platform.

Sirius could also be considered a maturing business, but unlike VeriSign and its rich valuation, Sirius has a forward P/E of 7.4. That looks much more like a value. Pair that with a dividend yielding a generous 4.5%, and Sirius starts checking a lot of boxes as a Buffett stock worth owning.

Today's Change

(

-0.25

%) $

-0.07

Current Price

$

27.52

It seems that others are slowly starting to recognize this company's value as well, as the stock price has climbed notably so far in 2026, inching closer to its 52-week high of $24.92.

The upside looks promising, but that has to be considered along with concerns about Sirius to get the full picture. Those concerns include slowing subscriber growth, an increasingly competitive streaming media space, and rising content costs.

Still, between the two companies, Sirius looks like the better value.

VeriSign (VRSN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 23. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis internet infrastructure services provider is expected to post quarterly earnings of $2.20 per share in its upcoming report, which represents a year-over-year change of +4.8%.

Revenues are expected to be $421.81 million, up 4.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 8.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for VeriSign?For VeriSign, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that VeriSign will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that VeriSign would post earnings of $2.29 per share when it actually produced earnings of $2.23, delivering a surprise of -2.62%.

The company has not been able to beat consensus EPS estimates in any of the last four quarters.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

VeriSign doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

-

RESTON, Va.--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the first quarter of 2026.

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $429 million for the first quarter of 2026, up 6.6 percent from the same quarter in 2025. Operating income was $294 million for the first quarter of 2026, compared to $271 million for the same quarter of 2025. Verisign reported net income of $215 million and diluted earnings per share (diluted “EPS”) of $2.34 for the first quarter of 2026, compared to net income of $199 million and diluted EPS of $2.10 for the same quarter of 2025.

“Through the first quarter of 2026 we continued to execute on our primary mission, extending into its 29th year our unparalleled record of providing 100% availability of our resolution service for the .com/.net domains. For the quarter, we delivered both steady growth in registrations and solid financial results,” said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Financial Highlights

Verisign ended the first quarter of 2026 with cash, cash equivalents and marketable securities of $556 million, a decrease of $24 million from year-end 2025. Cash flow from operations was $272 million for the first quarter of 2026, compared to $291 million for the same quarter of 2025. Deferred revenues as of March 31, 2026 totaled $1.43 billion, an increase of $45 million from year-end 2025. During the first quarter of 2026, Verisign repurchased 0.9 million shares of its common stock for $214 million. As of March 31, 2026, there was $863 million remaining for future share repurchases under the share repurchase program, which has no expiration. On April 20, 2026, Verisign’s Board of Directors approved a cash dividend of $0.81 per share of Verisign’s outstanding common stock to stockholders of record as of the close of business on May 19, 2026, payable on May 27, 2026. Business Highlights

Verisign ended the first quarter of 2026 with 176.1 million .com and .net domain name registrations in the domain name base, a 3.7 percent increase from the end of the first quarter of 2025, and a net increase of 2.54 million domain names during the first quarter of 2026. During the first quarter of 2026, Verisign processed 11.5 million new domain name registrations for .com and .net, compared with 10.1 million for the first quarter of 2025. The final .com and .net renewal rate for the fourth quarter of 2025 was 75.0 percent compared to 74.0 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after the end of the quarter. Verisign announces that it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $10.26 to $10.97 effective Nov. 1, 2026. Today’s Conference Call

Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the first quarter 2026 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (646) 769-9200 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.verisign.com. An audio archive of the call will be available at https://investor.verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at https://investor.verisign.com.

About Verisign

Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world’s most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com.

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems or services; vulnerabilities in the global routing system; system interruptions or system failures; damage or interruptions to our data centers, data center systems or resolution systems; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the U.S. or other applicable non-U.S. jurisdictions; new laws, regulations, directives or ICANN policies that require us to obtain and maintain personal information of registrants; economic, legal, regulatory, and political risks associated with our international operations; unfavorable changes in, or interpretations of, tax rules and regulations; risks from the implementation of ICANN’s consensus and temporary policies, technical standards and other processes; the weakening of, or changes to, the multi-stakeholder model of internet governance; the outcome of claims, lawsuits, audits or investigations; challenging economic conditions; our ability to compete in the highly competitive business environment in which we operate; changes in internet practices and behavior and the adoption of substitute technologies, or the negative impact of wholesale price increases; our ability to expand our services into developing and emerging economies; our ability to maintain strong relationships with registrars and their resellers; our ability to attract, retain and motivate highly skilled employees; the continuity of our quarterly dividend; our ability to protect and enforce our intellectual property rights; challenges from the use of AI technology by third-parties or us; and the impact on our stock price from the dissemination of false or misleading information by unrelated third parties. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.

©2026 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

VERISIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

March 31, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents       

$

476.7

$

307.9

Marketable securities

79.7

272.6

Other current assets   

69.6

72.0

Total current assets           

626.0

652.5

Property and equipment, net

214.2

213.7

Goodwill

52.5

52.5

Deferred tax assets

227.9

233.2

Deposits to acquire intangible assets

145.2

145.2

Other long-term assets

31.4

28.8

Total long-term assets

671.2

673.4

Total assets         

$

1,297.2

$

1,325.9

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Accounts payable and accrued liabilities

$

283.9

$

298.0

Deferred revenues

1,071.2

1,035.1

Total current liabilities

1,355.1

1,333.1

Long-term deferred revenues

358.2

349.4

Long-term senior notes

1,788.8

1,788.2

Long-term tax and other liabilities

8.5

9.4

Total long-term liabilities

2,155.5

2,147.0

Total liabilities

3,510.6

3,480.1

Commitments and contingencies

Stockholders’ deficit:

Preferred stock—par value $.001 per share; Authorized shares: 5.0; Issued and outstanding shares: none

 —

—

Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000; Issued shares: 355.8 at March 31, 2026 and 355.6 at December 31, 2025; Outstanding shares: 91.1 at March 31, 2026 and 91.9 at December 31, 2025

9,349.9

9,623.5

Accumulated deficit

(11,560.5

)

(11,775.0

)

Accumulated other comprehensive loss

(2.8

)

(2.7

)

Total stockholders’ deficit

(2,213.4

)

(2,154.2

)

Total liabilities and stockholders’ deficit

$

1,297.2

$

1,325.9

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except per share data)

(Unaudited)

Three Months Ended March 31,

2026

2025

Revenues

$

428.9

$

402.3

Costs and expenses:

Cost of revenues

49.2

49.4

Research and development

27.5

26.0

Selling, general and administrative

58.6

55.7

Total costs and expenses

135.3

131.1

Operating income

293.6

271.2

Interest expense

(18.9

)

(20.3

)

Non-operating income, net

4.7

7.5

Income before income taxes

279.4

258.4

Income tax expense

(64.9

)

(59.1

)

Net income

214.5

199.3

Other comprehensive loss

(0.1

)

(0.3

)

Comprehensive income

$

214.4

$

199.0

Earnings per share:

Basic

$

2.34

$

2.11

Diluted

$

2.34

$

2.10

Shares used to compute earnings per share

Basic

91.6

94.6

Diluted

91.8

94.8

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

$

214.5

$

199.3

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property and equipment

6.4

8.9

Stock-based compensation expense

19.1

17.5

Amortization of discount on investments in debt securities

(1.6

)

(3.6

)

Other, net

0.4

1.1

Changes in operating assets and liabilities:

Other assets

(0.4

)

0.2

Other liabilities

(16.2

)

6.6

Deferred revenues

44.9

57.2

Net deferred income taxes

5.3

4.1

Net cash provided by operating activities

272.4

291.3

Cash flows from investing activities:

Proceeds from maturities and sales of marketable securities

273.8

358.6

Purchases of marketable securities

(79.4

)

(35.2

)

Purchases of property and equipment

(7.2

)

(5.8

)

Net cash provided by investing activities

187.2

317.6

Cash flows from financing activities:

Repurchases of common stock

(225.4

)

(241.7

)

Payment of dividends

(74.2

)

—

Proceeds from employee stock purchase plan

8.5

7.9

Repayment of borrowings

—

(500.0

)

Proceeds from senior note issuance, net of issuance costs

—

493.9

Net cash used in financing activities

(291.1

)

(239.9

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

0.3

(0.3

)

Net increase in cash, cash equivalents, and restricted cash

168.8

368.7

Cash, cash equivalents, and restricted cash at beginning of period

309.5

212.1

Cash, cash equivalents, and restricted cash at end of period

$

478.3

$

580.8

Supplemental cash flow disclosures:

Cash paid for interest

$

13.1

$

26.2

Cash paid for income taxes, net of refunds received

$

28.7

$

20.0

More News From VeriSign, Inc.

Back to Newsroom

VeriSign (VRSN - Free Report) came out with quarterly earnings of $2.34 per share, beating the Zacks Consensus Estimate of $2.2 per share. This compares to earnings of $2.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.36%. A quarter ago, it was expected that this internet infrastructure services provider would post earnings of $2.29 per share when it actually produced earnings of $2.23, delivering a surprise of -2.62%.

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

VeriSign, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $428.9 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.68%. This compares to year-ago revenues of $402.3 million. The company has topped consensus revenue estimates two times over the last four quarters.

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

VeriSign shares have added about 11.1% since the beginning of the year versus the S&P 500's gain of 4.3%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for VeriSign was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.26 on $429.93 million in revenues for the coming quarter and $9.28 on $1.74 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the top 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Globant (GLOB - Free Report) , has yet to report results for the quarter ended March 2026.

This information technology services provider is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level.

Globant's revenues are expected to be $602.23 million, down 1.5% from the year-ago quarter.

VeriSign Inc (VRSN) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Record Domain Registrations VeriSign Inc (VRSN) reports a 6.6% revenue increase and record domain name base, while navigating challenges with operating expenses and cash flow. Summary

Revenue: $429 million, up 6.6% year-over-year.EPS (Earnings Per Share): $2.34, increased 11.4% year-over-year.Net Income: $215 million, compared to $199 million a year ago.Operating Income: $294 million, up 8.3% from the previous year.Operating Expenses: $135 million, compared to $131 million a year ago.Operating Cash Flow: $272 million, compared to $291 million a year ago.Free Cash Flow: $265 million, compared to $286 million a year ago.Cash and Equivalents: $556 million at the end of the quarter.Domain Name Base: 176.1 million names, with 11.5 million new registrations in Q1 2026.Renewal Rate: 76.3% for the first quarter of 2026.Share Repurchase Program: $863 million remaining available.Cash Dividend: $0.81 per share, payable on May 27, 2026.Price Increase for .com Domains: $0.71 increase to $10.97 effective November 1, 2026.

Release Date: April 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points VeriSign Inc VRSN reported a strong financial performance with a 6.6% year-over-year increase in revenue and an 11.4% increase in EPS.The combined .com and .net domain name base reached a record 176.1 million names, with new registrations at their highest since the first half of 2021.The company returned over 100% of its free cash flow to investors through share repurchases and dividends, totaling $1.13 billion in the last 12 months.VeriSign Inc (VRSN) maintained a stable financial position with $556 million in cash, cash equivalents, and marketable securities at the end of the quarter.The company announced a cash dividend of $0.81 per share and intends to continue paying quarterly dividends, subject to market conditions and board approval. Negative Points Operating expenses increased to $135 million in Q1 2026, compared to $131 million in the same quarter a year ago.Free cash flow decreased to $265 million from $286 million in the year-ago quarter.The upcoming .com price increase may impact renewal trends, depending on how retail registrars adjust their pricing.The company faces challenges with a higher proportion of first-time renewing names in the second half of 2026, which could affect renewal rates.VeriSign Inc (VRSN) has not yet announced a price increase for .net, which could impact future revenue growth if not adjusted. Q & A Highlights Q: Jim, can you elaborate on the impact of AI and marketing programs on the recent strength in domain registrations?
A: D. Bidzos, Executive Chairman, President, and CEO, explained that it's challenging to separate the impact of AI from marketing programs as they complement each other. AI makes it easier for registrars to help customers find domains and build websites, while tailored marketing programs have significantly engaged the channel, contributing to the growth.

Q: Can you provide insights into the renewal rates post-marketing program changes?
A: John Calys, Executive Vice President and CFO, noted that the renewal rate was strong at 76.3%. The marketing programs are designed to promote domains with better renewal characteristics, and they expect solid renewal rates through 2026. First-time renewals average in the mid-40% range, while previously renewed names are in the mid-80% range.

Q: What are your expectations for the upcoming ICANN TLD program, and how is VeriSign planning to participate?
A: D. Bidzos stated that ICANN's new round for gTLD applications opens soon, but the process is lengthy, with launches expected around 2028. VeriSign is preparing technically to participate, evaluating opportunities, and will update on their involvement as the application window progresses.

Q: With the upcoming .com price hike, what are your expectations for renewal trends and price elasticity?
A: John Calys mentioned that the impact on renewals depends on retail registrars' pricing decisions. Historically, price increases have had some effect, but they remain confident in renewal trends. D. Bidzos added that the price increase is modest, equating to about $0.03 per day for registrants.

Q: Can you provide more details on the new services related to security and infrastructure?
A: D. Bidzos highlighted the importance of high-assurance infrastructure, especially with AI revealing vulnerabilities. VeriSign's services focus on security, performance, and accuracy, with plans to introduce additional security tools that align with their infrastructure. More information will be shared through upcoming blogs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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].

Posted by Defense World Staff on Apr 26th, 2026

VeriSign, Inc. (NASDAQ:VRSN – Get Free Report) shares traded down 6.5% during trading on Friday . The company traded as low as $253.51 and last traded at $258.9710. 222,552 shares changed hands during trading, a decline of 72% from the average session volume of 806,553 shares. The stock had previously closed at $276.95.

More VeriSign News Here are the key news stories impacting VeriSign this week:

Positive Sentiment: Q1 beat and raised guidance — VeriSign reported Q1 revenue and EPS above street expectations and raised/narrowed FY2026 revenue and operating-income guidance, driven by domain growth and margin expansion; that beat initially supported the stock. Business Wire: Q1 Results Positive Sentiment: Analysts lift targets — Multiple firms raised forecasts and price targets after the print, including Robert W. Baird boosting its target to $355 (outperform), which signals some sell‑side conviction in continued domain growth and cash returns. Benzinga: Analysts Raise Forecasts Positive Sentiment: JPMorgan raises price target (small upside) — JPMorgan nudged its target to $278 and kept a neutral rating, a moderate endorsement that tempers downside risk from the print. Benzinga: JPMorgan Note Neutral Sentiment: Dividend and capital returns remain intact — VeriSign declared a quarterly dividend ($0.81) and continues share‑repurchase activity, supporting the income/cash‑return story but unlikely to move the stock materially on its own. Neutral Sentiment: Industry backdrop — DNIB reported global domain registrations rose sequentially, reinforcing the secular demand picture for registry services. Business Wire: DNIB Domain Report Negative Sentiment: Investor focus on renewal-mix and forward growth — Post‑earnings selling appears tied to management commentary about tougher renewal comparisons later in 2026 (a higher mix of first‑time renewals) and uncertainty over domain net‑adds cadence, prompting repositioning and profit‑taking. Quiver Quant: Post‑Earnings Slide Negative Sentiment: Insider selling and positioning shifts — Recent disclosures show heavy insider sales activity and mixed institutional flows (some large funds trimming positions), which can amplify near‑term downside pressure after a rally. Analyst Upgrades and Downgrades A number of brokerages have recently weighed in on VRSN. Zacks Research raised shares of VeriSign from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Citigroup lifted their price target on shares of VeriSign from $295.00 to $320.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price target on shares of VeriSign from $273.00 to $278.00 and gave the stock a “neutral” rating in a research report on Friday. Robert W. Baird lifted their price target on shares of VeriSign from $305.00 to $355.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, Weiss Ratings raised shares of VeriSign from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $317.67.

View Our Latest Stock Report on VeriSign

VeriSign Stock Performance The firm has a market capitalization of $24.53 billion, a P/E ratio of 29.75 and a beta of 0.70. The firm’s 50-day moving average is $246.64 and its 200 day moving average is $246.75.

VeriSign (NASDAQ:VRSN – Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The information services provider reported $2.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.30 by $0.04. VeriSign had a net margin of 49.95% and a negative return on equity of 40.69%. The firm had revenue of $428.90 million for the quarter, compared to analyst estimates of $424.50 million. During the same period in the previous year, the business earned $2.10 EPS. The company’s revenue was up 6.6% compared to the same quarter last year. As a group, research analysts expect that VeriSign, Inc. will post 9.28 EPS for the current fiscal year.

VeriSign Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Tuesday, May 19th will be paid a dividend of $0.81 per share. The ex-dividend date is Tuesday, May 19th. This represents a $3.24 annualized dividend and a dividend yield of 1.2%. VeriSign’s payout ratio is currently 36.78%.

Insider Buying and Selling at VeriSign In related news, EVP Thomas C. Indelicarto sold 498 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $249.08, for a total value of $124,041.84. Following the transaction, the executive vice president owned 30,115 shares in the company, valued at approximately $7,501,044.20. This represents a 1.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have sold 2,490 shares of company stock worth $626,690. 0.56% of the stock is owned by insiders.

Institutional Trading of VeriSign A number of institutional investors have recently bought and sold shares of the business. Advisors Asset Management Inc. lifted its holdings in shares of VeriSign by 25.3% during the 1st quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider’s stock worth $50,000 after acquiring an additional 40 shares during the period. Integrated Wealth Concepts LLC lifted its holdings in shares of VeriSign by 12.3% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,232 shares of the information services provider’s stock worth $313,000 after acquiring an additional 135 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of VeriSign by 104.5% during the 1st quarter. NewEdge Advisors LLC now owns 4,125 shares of the information services provider’s stock worth $1,047,000 after acquiring an additional 2,108 shares during the period. Jones Financial Companies Lllp lifted its holdings in shares of VeriSign by 122.1% during the 1st quarter. Jones Financial Companies Lllp now owns 3,358 shares of the information services provider’s stock worth $852,000 after acquiring an additional 1,846 shares during the period. Finally, Empowered Funds LLC lifted its holdings in shares of VeriSign by 2.0% during the 1st quarter. Empowered Funds LLC now owns 9,346 shares of the information services provider’s stock worth $2,373,000 after acquiring an additional 186 shares during the period. Institutional investors own 92.90% of the company’s stock.

About VeriSign (Get Free Report)

VeriSign, Inc (NASDAQ: VRSN) is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign’s registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.

In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.

Featured Articles Five stocks we like better than VeriSign Receive News & Ratings for VeriSign Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VeriSign and related companies with MarketBeat.com's FREE daily email newsletter.

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VeriSign trades at reasonably high-20s earnings multiples, supported by strong margins and return on invested capital. VRSN's investment case hinges on whether generative AI is a threat or tailwind, with valuation sensitivity to AI-driven market perceptions. Growth from .com and .net is mature; future upside depends on AI-driven infrastructure demand and successful expansion into new domains.

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Stock to Watch: VeriSign (VRSN - Free Report) Based in Reston, VA, VeriSign Inc. is a leading provider of domain name registry services and internet infrastructure. Its only reportable segment includes Registry Services.

VRSN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. VRSN has a Momentum Style Score of A, and shares are up 7.7% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.21 to $9.49 per share. VRSN also boasts an average earnings surprise of +1.9%.

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

BNY CEO Robin Vince discusses the implementation of Anthropic's Mythos at the bank.

Bank of New York Mellon Corp (BK) Q1 2026 Earnings Call Highlights: Record Revenue and AI Integration Drive Growth Bank of New York Mellon Corp (BK) reports a 42% EPS increase and unveils a $10 billion share repurchase program amid strong financial performance and strategic AI advancements. Summary

Earnings Per Share (EPS): $2.24, up 42% year over year.Revenue: $5.4 billion, up 13% year over year.Pretax Margin: Expanded to 37%.Return on Tangible Common Equity: 29% for the quarter.Fee Revenue: Up 11% year over year.Assets Under Custody/Administration (AUC/A): $59.4 trillion, up 12% year over year.Assets Under Management (AUM): $2.1 trillion, up 6% year over year.Net Interest Income: Increased by 18% year over year.Expenses: $3.4 billion, up 5% year over year.Capital Return: $1.4 billion returned to shareholders, with a payout ratio of 87%.New Share Repurchase Program: Authorized $10 billion.Tier 1 Leverage Ratio: 6% for the quarter.Common Equity Tier 1 (CET1) Ratio: 11%, down 89 basis points sequentially.Liquidity Coverage Ratio: 111%.Net Stable Funding Ratio: 131%.

Release Date: April 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points Earnings per share grew 42% year over year, reaching $2.24.Record revenue of $5.4 billion, up 13% year over year, driven by growth across Securities Services and Market and Wealth Services.Significant operating leverage with over 800 basis points of positive operating leverage, leading to pretax margin expansion to 37%.Strong return on tangible common equity at 29% for the quarter.Successful integration of AI into operations, with over 200 AI solutions developed, enhancing productivity and client service. Negative Points Expenses increased by 5% year over year, driven by higher investments and employee merit increases.Cumulative net outflows partially offset the growth in assets under management.Net securities losses of $50 million impacted investment and other revenue.CET1 ratio decreased by 89 basis points sequentially due to higher risk-weighted assets.Provision for credit losses was a benefit of only $7 million, indicating limited improvement in credit conditions. Q & A Highlights Q: Can you discuss the stronger-than-expected deposit trends and how euro and pound deposit betas are expected to behave given recent rate hikes?
A: Robin Vince, CEO, explained that the overall deposit balances were elevated due to clients holding higher liquidity amid macro uncertainty. The mix between interest-bearing and non-interest-bearing deposits drove net interest income (NII) outperformance. Euro and sterling deposits, which account for about 25% of the portfolio, have betas that peaked at 80% and are expected to behave symmetrically with rate changes.

Q: With robust year-over-year growth in DARTs and AUC, why wasn't revenue growth as strong, and how should we model this going forward?
A: Dermot Mcdonogh, CFO, stated that Wealth Solutions, formerly known as Pershing, saw net new asset growth of about 3%. The quarter was volume-driven due to macro uncertainty, leading to more client rebalancing. The integration of Archer into Wealth Solutions is expected to drive more capabilities and product innovation.

Q: How much of the quarter's strong performance is transitory, and what is the baseline for fee and NII growth?
A: Dermot Mcdonogh noted the diversified revenue stream with a mix of fees from balances and volumes. Volatility in the market generated volumes, contributing to the strong quarter. The NII guide assumes deposit balances will revert to seasonal patterns, with modestly higher balances relative to 2025.

Q: What are the financial benefits of AI, and what are your expectations for its impact in five years?
A: Robin Vince highlighted AI as a catalyst for transformational change, enhancing productivity and client service. AI is expected to improve revenue per employee and pretax income over time. The company has developed over 200 AI solutions, and AI is seen as a capacity multiplier for employees.

Q: How do you view the cyber risks associated with AI, and how should investors think about this risk?
A: Robin Vince emphasized the importance of cyber defense, noting that AI can be used for both good and bad. BNY Mellon is focused on using AI for defense and has integrated it into their security measures. The company views AI as a superpower that requires vigilance across all industries.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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].

The Bank of New York Mellon Corporation (NYSE:BK) reported better-than-expected first-quarter 2026 results Thursday.

Diluted EPS rose 42% year over year to $2.24 from $1.58, while adjusted EPS of $2.25 topped estimates of $1.93. Total revenue increased 13% to a record $5.409 billion, exceeding estimates of $5.180 billion.

CEO Robin Vince said, “BNY had a strong start to 2026 with record revenue of $5.4 billion in the first quarter, up 13% year-over-year, reflecting broad-based growth across our Securities Services and Market and Wealth Services businesses.”

Bank of New York Mellon shares rose 0.1% to close at $134.84 on Thursday.

These analysts made changes to their price targets on Bank of New York Mellon following earnings announcement.

Keefe, Bruyette & Woods analyst David Konrad maintained Bank of New York Mellon with an Outperform rating and raised the price target from $143 to $150. Evercore ISI Group analyst Glenn Schorr maintained the stock with an In-Line rating and raised the price target from $119 to $136. Truist Securities analyst David Smith maintained the stock with a Buy and raised the price target from $140 to $148. Considering buying BK stock? Here’s what analysts think:

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Posted by Defense World Staff on Apr 21st, 2026

Greystone Financial Group LLC lessened its position in shares of BNY (NYSE:BK – Free Report) by 2.7% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 136,651 shares of the bank’s stock after selling 3,856 shares during the quarter. BNY accounts for 2.5% of Greystone Financial Group LLC’s portfolio, making the stock its 11th largest position. Greystone Financial Group LLC’s holdings in BNY were worth $15,864,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Thurston Springer Miller Herd & Titak Inc. acquired a new position in BNY in the 4th quarter worth approximately $27,000. Marquette Asset Management LLC lifted its stake in BNY by 174.7% during the 4th quarter. Marquette Asset Management LLC now owns 261 shares of the bank’s stock valued at $30,000 after acquiring an additional 166 shares during the period. Valley Wealth Managers Inc. purchased a new stake in shares of BNY in the 3rd quarter valued at $33,000. Westside Investment Management Inc. increased its stake in shares of BNY by 44.1% in the third quarter. Westside Investment Management Inc. now owns 415 shares of the bank’s stock worth $45,000 after acquiring an additional 127 shares during the period. Finally, Dunhill Financial LLC raised its holdings in shares of BNY by 130.8% during the third quarter. Dunhill Financial LLC now owns 427 shares of the bank’s stock worth $47,000 after purchasing an additional 242 shares during the last quarter. 85.31% of the stock is owned by institutional investors and hedge funds.

BNY Stock Up 0.1% BK stock opened at $135.26 on Tuesday. BNY has a one year low of $73.55 and a one year high of $137.54. The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.71 and a current ratio of 0.75. The firm’s fifty day moving average is $120.45 and its 200 day moving average is $116.19. The firm has a market cap of $93.09 billion, a PE ratio of 16.76, a P/E/G ratio of 1.07 and a beta of 1.06.

BNY (NYSE:BK – Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The bank reported $2.25 earnings per share for the quarter, topping analysts’ consensus estimates of $1.94 by $0.31. BNY had a net margin of 14.60% and a return on equity of 15.29%. The business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same quarter in the prior year, the firm posted $1.58 earnings per share. The company’s revenue was up 12.9% compared to the same quarter last year. On average, research analysts forecast that BNY will post 8.52 EPS for the current year.

BNY Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Monday, April 27th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Monday, April 27th. This represents a $2.12 dividend on an annualized basis and a yield of 1.6%. BNY’s dividend payout ratio is presently 26.27%.

Analysts Set New Price Targets A number of research firms recently issued reports on BK. New Street Research set a $143.00 target price on shares of BNY in a research report on Wednesday, January 14th. JPMorgan Chase & Co. lifted their price objective on BNY from $128.50 to $130.50 and gave the company an “overweight” rating in a research note on Tuesday, April 7th. Morgan Stanley boosted their price objective on BNY from $135.00 to $139.00 and gave the company an “equal weight” rating in a report on Friday. Wells Fargo & Company upped their target price on BNY from $119.00 to $122.00 and gave the stock an “equal weight” rating in a research note on Wednesday, January 14th. Finally, TD Cowen raised their target price on BNY from $133.00 to $145.00 and gave the stock a “buy” rating in a report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $137.35.

Read Our Latest Research Report on BNY

BNY Profile (Free Report)

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world’s capital markets, partnering with clients to help them operate more efficiently and accelerate growth.

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Posted by Defense World Staff on Apr 26th, 2026

Calamos Advisors LLC lowered its position in BNY (NYSE:BK – Free Report) by 3.9% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 178,228 shares of the bank’s stock after selling 7,220 shares during the period. Calamos Advisors LLC’s holdings in BNY were worth $20,690,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently bought and sold shares of the company. Revolve Wealth Partners LLC acquired a new position in BNY in the fourth quarter valued at approximately $220,000. Sivia Capital Partners LLC lifted its holdings in BNY by 36.6% in the second quarter. Sivia Capital Partners LLC now owns 3,394 shares of the bank’s stock valued at $309,000 after acquiring an additional 909 shares during the period. Jump Financial LLC acquired a new position in BNY in the second quarter valued at approximately $2,482,000. Treasurer of the State of North Carolina lifted its holdings in BNY by 1.7% in the second quarter. Treasurer of the State of North Carolina now owns 334,388 shares of the bank’s stock valued at $30,466,000 after acquiring an additional 5,445 shares during the period. Finally, Osterweis Capital Management Inc. lifted its holdings in BNY by 11,890.0% in the second quarter. Osterweis Capital Management Inc. now owns 1,199 shares of the bank’s stock valued at $109,000 after acquiring an additional 1,189 shares during the period. Hedge funds and other institutional investors own 85.31% of the company’s stock.

Insiders Place Their Bets In other news, VP Shannon Marie Hobbs sold 297 shares of the company’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $137.05, for a total transaction of $40,703.85. Following the completion of the transaction, the vice president directly owned 15,206 shares of the company’s stock, valued at $2,083,982.30. This represents a 1.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Alejandro Perez sold 12,504 shares of the company’s stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $137.01, for a total value of $1,713,173.04. Following the transaction, the executive vice president directly owned 62,613 shares of the company’s stock, valued at approximately $8,578,607.13. The trade was a 16.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 48,091 shares of company stock valued at $6,568,423. Corporate insiders own 0.17% of the company’s stock.

BNY Trading Down 1.0% Shares of BK stock opened at $134.10 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 0.75 and a quick ratio of 0.71. The company has a market cap of $92.29 billion, a price-to-earnings ratio of 16.62, a PEG ratio of 0.99 and a beta of 1.06. The stock has a 50 day simple moving average of $121.70 and a 200-day simple moving average of $116.94. BNY has a 1-year low of $77.77 and a 1-year high of $139.15.

BNY (NYSE:BK – Get Free Report) last announced its earnings results on Thursday, April 16th. The bank reported $2.25 earnings per share for the quarter, topping the consensus estimate of $1.94 by $0.31. The business had revenue of $5.41 billion during the quarter, compared to the consensus estimate of $5.14 billion. BNY had a return on equity of 15.29% and a net margin of 14.60%.The business’s quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.58 EPS. On average, equities research analysts expect that BNY will post 8.76 EPS for the current fiscal year.

BNY Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Monday, April 27th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, April 27th. BNY’s dividend payout ratio is presently 26.27%.

Analyst Ratings Changes A number of brokerages have issued reports on BK. TD Cowen boosted their price target on BNY from $133.00 to $145.00 and gave the company a “buy” rating in a report on Wednesday, January 7th. New Street Research set a $143.00 price target on BNY in a report on Wednesday, January 14th. Truist Financial boosted their price target on BNY from $140.00 to $148.00 and gave the company a “buy” rating in a report on Friday, April 17th. Evercore set a $136.00 price target on BNY in a report on Friday, April 17th. Finally, Wells Fargo & Company boosted their price target on BNY from $119.00 to $122.00 and gave the company an “equal weight” rating in a report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $137.35.

Get Our Latest Analysis on BK

About BNY (Free Report)

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world’s capital markets, partnering with clients to help them operate more efficiently and accelerate growth.

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Bank of New York Mellon remains a top conviction buy, outperforming since May 2023 with a +230% return since then. BK's investment case is anchored by consistent earnings beats, robust dividend growth, and proven resilience across market cycles. Recent analyst upgrades and price target increases reinforce confidence in BK's competitive positioning and organic growth drivers.