Track market-moving stories before they get noisy

NEW YORK--(BUSINESS WIRE)--Accenture (NYSE: ACN) has agreed to acquire Whalar, a leading creator and social agency, from Whalar Group. Whalar will become part of Accenture Song—adding scaled creator and influencer engagement to its customer growth capabilities. This is a pivotal shift in the evolution of the creator economy on a global scale. By connecting real‑time insights, social commerce and AI-driven discovery, Accenture Song will help creators move from one-off brand activations to becoming a more deeply integrated part of customer experiences.

Social has become the primary engine of cultural relevance and commerce, where brands are increasingly built, discovered, and experienced. According to the IAB, ad spend in the U.S. creator economy is among the fastest-growing sectors in all of media and expected to reach $43.9 billion in 2026. Creators sit at the center of this shift, shaping how audiences engage, what they trust, and ultimately what they buy. Accenture Song has long helped clients navigate this transformation, bringing together strategy, creativity, technology, marketing, and commerce—powered by data and AI—to drive growth in a social-first world.

"Accenture Song exists to help the world's most ambitious companies grow—and today, growth is inseparable from relevance,” said Ndidi Oteh, CEO of Accenture Song. “Social is where brands are discovered, where modern commerce is happening and where consumer habits tell us what products and services are going to win next. Whalar brings a creator capability that strengthens how we drive meaningful impact and growth for clients.”

Whalar’s strength lies in its deep understanding of creators. Through more than $600 million in creator campaigns and tens of thousands of collaborations across over 40 countries and 15 languages, the agency has developed an unmatched understanding of creators and how the landscape continues to evolve. Operating at scale across global, multi-market campaigns and always-on programs, Whalar delivers thousands of creator activations annually, generating billions of engagements and measurable business impact for leading brands. Its work spans all major platforms and is supported by advanced measurement capabilities, including integration into media mix modeling and third-party research.

"The creator economy demands a new kind of expertise, one that blends authentic creator relationships, deep platform knowledge, and the technology to activate both at enterprise scale,” said Dimitri Maex, global marketing practice lead at Accenture Song. “Bringing Whalar into Accenture Song lets us pair creator authenticity with the intelligence and scale to deliver work that’s not just produced but felt. Because as the agentic economy grows, what wins won’t be the most content—it will be what is most original and the most human.”

Whalar has helped build and define the creator economy, evolving the space from early influencer marketing into a sophisticated, data-driven discipline. Today, it stands as the most awarded agency in social and creator marketing, recognized for both its creative excellence and its ability to deliver measurable business outcomes for brands. The agency has earned industry honors including Fast Company’s Most Innovative Companies, Adweek’s Creator Agency of the Year, Campaign UK’s Agency of the Year, Campaign Global’s Social Agency of the Year, and Ad Age’s A-List Social/Influencer Agency of the Year.

“We’re incredibly proud of what the team has built over the past decade,” said Neil Waller and James Street, co-founders & co-CEOs of Whalar Group. “Accenture Song operates at a level of scale and ambition that is truly unique, and we believe there is no better partner to take Whalar agency to its next phase of growth.”

Whalar Group will continue to operate as is, with its remaining companies Sixteenth, Foam, Moby Ventures, The Lighthouse, and The Business of Creativity unchanged, under co-founders Neil Waller and James Street. Whalar Group will enter a three-year strategic partnership with Accenture Song focused on driving innovation in the creator economy and granting access to the wider Whalar Group.

“This is a special moment for our remarkable team and us,” said Whalar co-CEOs Emma Harman and Jo Cronk. “We are immensely proud of what we have built over the past decade in partnership with our clients, partners, and the creator community. Joining Accenture Song allows us to build on our unrivaled foundation and accelerate our ambition for the next chapter in the creator revolution.”

Whalar’s co-CEOs Emma Harman and Jo Cronk will continue in their roles, joining Accenture Song through the acquisition, along with Whalar’s team of over 170 people across the U.S., U.K., Ireland, Germany, and Spain.

This acquisition is the latest in a series of strategic acquisitions aimed at scaling Accenture Song’s creator and social capabilities, including Superdigital in 2025 and Unlimited in 2024.

Terms of the investment were not disclosed. Completion of the acquisition is subject to customary closing conditions.

Forward Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, that Accenture and Whalar will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions, the transaction and the partnership might not achieve its anticipated benefits and risks and uncertainties related to the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

About Accenture
Accenture helps the world’s leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed for organizations across industries. Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI, and to be the most client-focused, AI-enabled, great place to work in the world. We bring together the talent of our approximately 786,000 people with proprietary assets and platforms, deep process and industry expertise, and leading ecosystem relationships to deliver end-to-end solutions and measurable outcomes at scale. Through our Reinvention Services, we offer broad expertise across Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent, with advanced capabilities in AI and Data, Industry and Process, and Technology. We serve approximately 9,000 clients and generated approximately $70 billion in FY25 revenue. Visit us at accenture.com.

Accenture Song accelerates growth and value for our clients through sustained customer relevance. Our capabilities span ideation to execution: growth, product and experience design; technology and experience platforms; creative, media and marketing strategy; and campaign, commerce transformation content and channel orchestration. With strong client relationships and deep industry expertise, we help our clients operate at the speed of life through the unlimited potential of imagination, technology and intelligence.

Copyright © 2026 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

Key Takeaways Accenture's fiscal Q2 2026 revenues rose 8% y/y to $18B, led by broad-based regional growth.ACN exceeded its fiscal 2026 AI staffing target ahead of schedule and added 100 advanced AI engagements.ACN invested $1.6B on acquisitions during fiscal Q2'26 and expects to spend about $5B in fiscal 2026 deals. Shares of Accenture plc (ACN - Free Report) have had a decent run over the past month. The stock has risen 1.2% compared with the industry's 1.9% growth. The Zacks S&P 500 composite declined 0.8% during the said time frame.

ACN has a Growth Score of A. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

The company’s third-quarter fiscal 2026 earnings are expected to increase 6.6% year over year. Earnings for fiscal 2026 and fiscal 2027 are projected to rise 7.4% and 7.7%, respectively, year over year. Revenues are expected to increase 6.6% in fiscal 2026 and 5.3% in fiscal 2027.

Factors That Bode Well for ACNAccenture is benefiting from robust demand for application modernization and maintenance, cloud enhancements and cybersecurity. The company reported that revenues increased 8% year over year to $18 billion during the second quarter of fiscal 2026, driven by broad-based growth across geographic regions and service offerings. The Asia Pacific region delivered the strongest growth during the said time frame, with revenues increasing 10% in local currency. Revenues from the Americas grew 3%, while Europe, the Middle East and Africa posted 2% growth.

The worldwide artificial intelligence (AI) boom also drives growth opportunities for ACN. The management highlighted growing demand from clients seeking to integrate advanced AI capabilities into core business processes. The company is employing more than 85,000 AI and data professionals, exceeding its fiscal 2026 target ahead of schedule. ACN reported that more than 100 additional clients initiated advanced AI engagements during the last reported quarter, creating a significant growth opportunity.

Accenture pursues acquisitions, partnerships and strategic investments as key drivers for long-term growth. It invested $1.6 billion in acquisitions during the second quarter of fiscal 2026 and expects to deploy approximately $5 billion toward acquisitions during fiscal 2026. The company recently acquired Faculty, a U.K.-based AI-native services company with a decision-intelligence platform and a majority stake in DLB Associates, a fast-growing data center engineering and consulting firm.

ACN expanded its relationship with Palantir, a data analytics platform provider, through the acquisition of Decho and RANGR Data. Decho is a U.K.-based technology and AI consultancy that helps organizations reinvent through the design, delivery and scaling of Palantir solutions. RANGR Data is a U.S.-based certified Palantir partner with deep experience in driving scaled transformation through a client-centric approach.

The company has a consistent track record of dividend payments. It paid dividends of $3.7 billion, $3.2 billion, $2.8 billion and $2.5 billion in fiscal 2025, 2024, 2023 and 2022, respectively. Such moves indicate its commitment to returning value to shareholders and underline its confidence in business.

Key Risks to WatchACN faces stiff competition from strong companies such as Genpact Limited, Cognizant Technology Solutions and Infosys. This tough competition, along with the limited scope for product differentiation, makes renegotiating large contracts increasingly important and creates pricing pressure on ACN.

ACN is witnessing growing cost pressures as operating expenses continue to rise. Total operating costs increased 5.9% in fiscal 2023, remained elevated in fiscal 2024 despite being flat and rose another 7.5% in fiscal 2025, highlighting persistent cost intensity. This trend underscores the need for tighter cost controls to prevent expenses from outpacing revenue growth and eroding profitability. Total operating expenses climbed a further 7.9% year over year in the second quarter of fiscal 2026, reinforcing near-term margin concerns.

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

Stocks to ConsiderA couple of better-ranked stocks in the broader Zacks Computer and Technology sector are Cisco Systems (CSCO - Free Report) and Dell Technologies (DELL - Free Report) .

Cisco Systems carries a Zacks Rank #2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 11.1%.

CSCO delivered a trailing four-quarter earnings surprise of 2%, on average.

Dell Technologies sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 26.4%.

DELL surpassed the Zacks Consensus Estimate in each of the trailing four reported quarters, with an average earnings surprise of 18.7%.

By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

and Lucia Moses You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Accenture Song has reached a deal to acquire Whalar. Pictured: Whalar Co-CEO Emma Harman, Accenture Song CEO Ndidi Oteh, and Whalar Co-CEO Jo Cronk. Heather Shuker My DMs have been buzzing about Accenture Song's planned acquisition of the creator and social agency Whalar. Industry insiders are particularly interested in what it means for the future of influencer marketing M&A.

Tristan Rice, partner at the M&A firm SI Global, told CMO Insider the deal is a "coming-of-age moment for creator marketing." He said it was evidence of big marketing budgets moving into the sector, since Accenture's client base is weighted toward large enterprise clients.

Accenture Song, the consulting firm's marketing services arm, is somewhat late to making a big influencer marketing play, though it acquired a smaller social firm, Superdigital, last year. Notable recent transactions in the space include WPP buying The Goat Agency and Obviously in 2023, Havas acquiring Wilderness in 2024, and Publicis Groupe picking up Influential in 2024 and Captiv8 in 2025.

Whalar Group cofounder Neil Waller told Adweek the Accenture deal marks "the largest creator economy transaction," though neither company revealed the terms. The entire Whalar Group was valued at a reported $400 million when it raised money last year. But Accenture is only picking up the Whalar agency, not its wider portfolio of talent management and influencer-tech companies.

Bernard Urban, of the consulting firm BCSI, estimated the Whalar agency had an enterprise value in the range of $225 million to $300 million, based on publicly available information about its scale, employee count, and funding history. (For context, the Publicis-Influential deal was worth $500 million, per the WSJ.)

The biggest significance of the deal might not be the dollar value, but what Accenture can now do with Whalar in the fold.

"We're going to be in more rooms, bigger rooms, global scale," Whalar co-CEO Jo Cronk told CMO Insider.

The deal also includes a "three-year strategic partnership" between Accenture Song and the remaining companies within the Whalar Group.

"By combining Accenture Song's global reach, technology, and capabilities with everything we've built across Whalar Group — from our creator communities and The Lighthouse to Foam — we have an opportunity to accelerate the next chapter of the creator economy," Waller said of the strategic partnership. The Lighthouse is Whalar Group's physical campus for creators, while Foam is its talent management platform.

Is there room for more deals of this magnitude in the space? M&A experts said it's unlikely.

The land grab for baseline influencer marketing capabilities among the agency holding companies is largely complete.

"The holding companies that paid high creative agency multiples for influencer agencies were, in many cases, paying premiums simply as a 'cost of entry' in order to attempt to widen their aperture of services by stepping into the category of cultural relevance," said Bob Morris, managing partner for Bravery Group, an M&A advisory firm.

However, there's still room for smaller bolt-ons as creator partnerships shift from CMOs' innovation budgets and become a more established part of the media plan. And the growing cohort of independent agencies and martech businesses will likely want a slice of the action, too. Look out for transactions in areas like compliance automation, campaign-level budget tracking, measurement, and tech that integrates creator activity with retail media networks.

Digital Capital Advisors forecasts about 60 influencer marketing M&A transactions this year, down slightly from 64 in 2025, though notably up from 40 completed in 2021.

"The space is hot," Jay MacDonald, Digital Capital Advisors CEO, told CMO Insider.

Lara O'Reilly You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Lara O'Reilly is the anchor of the CMO Insider newsletter.She is a senior correspondent who has covered the digital advertising, marketing, and media industries since 2010. Her current beat includes big tech companies like Alphabet, and Meta, and adtech firms, agencies,  publishers, the creator economy, and CMOs.Lara has previously worked as a reporter and executive producer at titles including The Wall Street Journal, Digiday, Yahoo Finance, and Marketing Week. She was previously Business Insider's senior global advertising editor from 2014 to 2017.Lara was named "Digital Journalist of the Year" by the London Press Club in 2016.Lara is a regular guest on TV and radio and has appeared on outlets such as the BBC, NPR, SiriusXM's Wharton Business Daily, and CTV Television Network. She also frequently speaks on stage at major events such as Web Summit, IFA, VivaTech, Advertising Week, and Cannes Lions.To get in touch with Lara O'Reilly, email [email protected] or contact her on Signal at @loreilly.71Check out Insider's source guide for tips on sharing information securely.Read some of Lara's recent work below:

Inside Amazon's plan to clobber rivals The Trade Desk and Google in a key area of advertisingMeet Cindy Rose, the former lawyer and top Microsoft exec set to become CEO of ad giant WPPHow X CEO Linda Yaccarino went from Elon Musk's fixer to out of a job in 2 yearsInside the political reckoning shaking up the ad industryMeet the 'reclusive' tech billionaire making an audacious bid to buy TikTokTop marketers are under a ton of pressure. They told me how they're trying to make themselves recession-proof.Big Tech workers got too used to perks. The pampering is over.

Lucia Moses You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Lucia Moses covers the media and entertainment business, with a focus on creators. She's broken stories about MrBeast's business ambitions, Google's movie initiative, and Netflix's push into podcasts.Her reporting has won the Los Angeles Press Club's National Entertainment Journalism Awards.She previously worked at Digiday and Adweek and graduated from Cornell University.Reach her at [email protected], X at @lmoses, LinkedIn, or via phone/text/Signal at (917) 209-8549.Popular articles

MrBeast tries to cut down on his massive spending without killing the magicTikToker Khaby Lame's $975 million deal is riding on a crashing stockActors speak out against AI-generated promos that put them in fake sex scenesRob McElhenney is betting on himselfDisney has a kid crisisWhy Hollywood should be terrified of YouTube, not NetflixAmazon Studios is growing fast and spending big on shows like 'Citadel,' but insiders say unclear creative direction, leadership shifts, and tech bureaucracy threaten to drive away staff and talent Creator economy

Coinbase Global, Inc. (COIN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -14.9%, compared to the Zacks S&P 500 composite's +5.5% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Coinbase Global falls in, has lost 3.3%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Coinbase Global is expected to post earnings of $0.39 per share, indicating a change of +225% from the year-ago quarter. The Zacks Consensus Estimate has changed -24.5% over the last 30 days.

The consensus earnings estimate of $1.77 for the current fiscal year indicates a year-over-year change of -56.1%. This estimate has changed -36.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.56 indicates a change of +157.5% from what Coinbase Global is expected to report a year ago. Over the past month, the estimate has changed +22.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Coinbase Global.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Coinbase Global, the consensus sales estimate for the current quarter of $1.39 billion indicates a year-over-year change of -7%. For the current and next fiscal years, $6.06 billion and $7.3 billion estimates indicate -15.6% and +20.4% changes, respectively.

Last Reported Results and Surprise HistoryCoinbase Global reported revenues of $1.41 billion in the last reported quarter, representing a year-over-year change of -30.5%. EPS of -$0.17 for the same period compares with $1.94 a year ago.

Compared to the Zacks Consensus Estimate of $1.5 billion, the reported revenues represent a surprise of -5.61%. The EPS surprise was -147.22%.

Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Coinbase Global is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Coinbase Global. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Shares of Coinbase Global COIN moved lower on Friday after Baird reiterated its Neutral rating on the cryptocurrency exchange operator but lowered its price target, warning that weak trading activity could continue to weigh on the business.

Coinbase stock fell nearly 7% in trading to around $152.

The shares have struggled throughout 2026, declining roughly 34% since the start of the year as cryptocurrency prices have remained near their 52-week lows.

Baird also named Coinbase a "Bearish Fresh Pick," citing concerns that soft trading volumes may persist for an extended period and could lead to disappointing second-quarter results.

Although Coinbase has expanded beyond its core trading business over the past several years, transaction revenue remains a major driver of financial performance.

Baird analyst David Koning expects the company's second-quarter revenue to come in approximately 5% to 6% below Wall Street expectations, with trading volumes projected to decline between 15% and 20% sequentially.

The analyst noted that activity across the crypto market has remained subdued despite some improvement in early June.

"April and May were two of the slowest months in the past few years," Koning wrote, noting that Robinhood's chief brokerage officer recently highlighted strength in equities, options, futures, and predictions but made no mention of crypto.

Baird also questioned whether the modest rebound in June trading volumes reflects sustainable demand.

"While the first few days of June showed decent volume (closer to average levels of recent years), we think it’s due to significant trading out of Bitcoin, which may be followed by limited interest in trading," wrote analyst David J. Koning.

The brokerage argued that the broader crypto market continues to face several headwinds, including the strong performance of the S&P 500, elevated inflation, high borrowing costs, and competition from other high-growth investment themes such as artificial intelligence stocks and new initial public offerings.

Regulatory uncertainty remains a concernBaird also pointed to uncertainty surrounding the proposed CLARITY Act, a market-structure bill that many cryptocurrency supporters view as an important step toward broader industry adoption.

According to the firm, legislative disagreements over ethics and crypto issuance issues make it increasingly unlikely that the bill will pass before the November midterm elections.

The delay, Baird said, could allow banks and financial technology companies operating under existing regulatory frameworks to strengthen their competitive positions.

Prediction market platform Polymarket currently assigns a 57% probability that the legislation will become law this year, down from 65% a month earlier.

Alongside concerns about slowing growth, Baird also argued that Coinbase's valuation could come under additional pressure if earnings expectations continue to fall.

The brokerage lowered its price target to $142 from $160 and noted that the stock currently trades at roughly 35 times estimated 2027 earnings per share.

"The combo of falling estimates and weak multiples across beat/raise fintechs could eventually bleed into COIN's valuation," the firm wrote.

In its bear-case scenario, Baird believes the stock could decline to between $75 and $90 if 2027 earnings per share fall to $3 and the valuation multiple contracts to 25 to 30 times earnings.

Despite the cautious outlook, Baird remains more bearish than much of Wall Street.

According to FactSet data, approximately 64% of the 39 analysts covering Coinbase currently rate the stock a Buy, with the average price target standing at about $231.

© Inspiration GP / Shutterstock.com

Coinbase (NASDAQ:COIN | COIN Price Prediction) sits at the center of every fight worth having in crypto right now. The Everything Exchange strategy is live, prediction markets are running at a $100M+ annualized run rate, and stablecoin revenue hit $305 million last quarter.

Yet shares are down 23.06% YTD and trading at $173.99. CEO Brian Armstrong told investors “crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems.”

The Real Reason Coinbase Is Down 23% This Year Q1 2026 was ugly. Revenue came in at $1.41 billion, missing consensus by 4.72%, and GAAP EPS came in at -$1.49 against a $0.0444 estimate. The damage came from $482.4 million in losses on crypto assets held for investment as total crypto market cap and trading volumes fell more than 20% quarter over quarter. Transaction revenue dropped 23% sequentially.

Shares are off 3.34% over the past week, down 9.02% over the past month, and lower by 29.48% over the trailing year. With a beta of 3.381, COIN trades like a leveraged bet on crypto sentiment. When the asset class wobbles, this stock cracks.

Wall Street Sees 33% Upside. My Model Sees Much More Consensus has Coinbase pegged at $230.60, with 3 Strong Buys, 18 Buys, 10 Holds, 2 Sells, and 1 Strong Sell. Bullish skew sits at 62%. Our base case is more aggressive at $287.88, implying 65.46% upside with 90% confidence. The bull scenario runs to $412.17.

Analysts are anchoring too hard to the Q1 miss and ignoring operating leverage. Quarterly earnings growth ran 4.306% YoY even with the asset writedowns, and the 14% headcount cut targeting $500 million in annualized savings hits the model in Q3 and Q4. If crypto volumes normalize, the consensus target looks like a floor.

The Path to $450 Per Share Reaching $450 from today’s price of $173.99 would require a gain of 158.6%. With forward EPS of $3.99, a price of $450 implies a forward P/E of 113x. Our base case of $287.88 already implies 65x, meaning the bold target needs roughly 48x of additional multiple expansion.

That is a stretch. But it has happened before. COIN traded as high as $444.64 within the last 52 weeks.

The catalysts: USDC stablecoin market projected to grow from $300B to $3T by 2030, prediction markets at $100M+ annualized in their first two full months, and retail derivatives annualizing over $200M.

Armstrong’s framing is key: “as regulatory clarity emerges, we believe crypto will update all financial services, and Coinbase is well positioned to capitalize on that transition.” The primary risk: another leg down in crypto prices wipes the earnings recovery off the table.

Where Coinbase Trades Today vs Its Earnings Power At $173.99, shares trade at a forward P/E of 44x against forward EPS of $3.99. Shares look expensive on absolute terms, yet COIN sits closer to its 52-week low of $139.36 than its $444.64 high.

Long-term holders have suffered, with the stock down 47% over the past decade from the 2021 direct listing. For a company growing into a $3T stablecoin market, that asymmetry makes the bull case interesting.

Is $450 Realistic? $450 by year-end 2026 requires a 158.6% gain. It is a stretch, not a base case.

Three things need to break right: crypto volumes recover meaningfully into Q4, cost cuts flow through to operating margin, and new revenue lines (prediction markets, derivatives, stablecoins) keep compounding at current rates.

What derails it is another 20%+ drawdown in crypto market cap that resets transaction revenue lower. We’ve outlined the blueprint for how Coinbase could reach $450 in 2026.

In the latest trading session, Coinbase Global, Inc. (COIN - Free Report) closed at $152.40, marking a -7.15% move from the previous day. The stock's change was less than the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.

Heading into today, shares of the company had lost 14.94% over the past month, lagging the Finance sector's gain of 2.8% and the S&P 500's gain of 5.47%.

The investment community will be closely monitoring the performance of Coinbase Global, Inc. in its forthcoming earnings report. In that report, analysts expect Coinbase Global, Inc. to post earnings of $0.39 per share. This would mark year-over-year growth of 225%. In the meantime, our current consensus estimate forecasts the revenue to be $1.39 billion, indicating a 6.97% decline compared to the corresponding quarter of the prior year.

COIN's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $6.06 billion. These results would represent year-over-year changes of -56.08% and -15.64%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Coinbase Global, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 36.24% lower within the past month. Coinbase Global, Inc. is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Coinbase Global, Inc. is currently being traded at a Forward P/E ratio of 92.55. This denotes a premium relative to the industry average Forward P/E of 10.23.

We can additionally observe that COIN currently boasts a PEG ratio of 5.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. COIN's industry had an average PEG ratio of 0.97 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

The top names in crypto have been taking a beating in 2026. Bitcoin (BTC +0.12%) is down 27% as I write this. XRP (XRP 0.52%) is down 35%. Ethereum (ETH 0.74%) is down 40%. And Solana (SOL 0.32%) is down 45%.

So, if you're looking to put $1,000 to work in the crypto market right now, you might want to cast a wider net. The good news is that a handful of so-called "AI cryptos" have been soaring in value, despite the broader market meltdown.

The best-in-class AI crypto The name at the top of my list is Bittensor (TAO 0.80%), which has a current market cap of $2.5 billion. It's not the biggest artificial intelligence crypto -- that distinction belongs to NEAR Protocol (NEAR 4.16%), with a $3 billion market cap. And it's not even the fastest-moving AI crypto -- that distinction belongs to Venice Token (VVV 1.51%), which is up a staggering 970% this year.

Image source: Getty Images.

But what I like about Bittensor is that it is a highly diversified bet on the future of decentralized artificial intelligence. It uses 128 blockchain subnets (specialized, decentralized marketplaces) to focus on distinct AI-related tasks. The most popular subnet right now is Chutes (Subnet 64), which provides serverless AI compute at scale.

There are a lot of exciting developments underway in these subnets. As a result, Bittensor has even earned plaudits from Nvidia (NVDA +0.15%) CEO Jensen Huang. The subnet that caught his attention was one that specializes in training large language models (LLMs).

How can you put $1,000 to work in Bittensor? Right now, there are no spot ETFs available for Bittensor. However, two could be on the way by the end of this year, given that both Bitwise and Grayscale have filed Bittensor ETF applications with the SEC.

Today's Change

(

-0.80

%) $

-1.72

Current Price

$

212.62

So, you'd need to buy Bittensor on a cryptocurrency exchange. My personal preference is buying on Coinbase Global (COIN 0.33%). With $1,000, you'd be able to buy approximately 4.5 TAO tokens on Coinbase.

With two high-profile AI IPOs on tap potentially this year -- Anthropic and OpenAI -- I'm expecting a buying frenzy for all things AI-related. That could provide a huge opportunity for Bittensor, which would likely be the recipient of much of the new money flowing into crypto for AI-related projects.

If demand is great enough, Bittensor might be ready to reclaim its all-time high of $768 from April 2024. Given today's prices, that's roughly a 3.5 times return on investment. That's not bad, considering that Bitcoin and other top crypto names show no signs of recovering anytime soon.

Dominic Basulto has positions in Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Bittensor, Ethereum, NEAR Protocol, Nvidia, Solana, and XRP. The Motley Fool recommends Coinbase Global and Venice Token. The Motley Fool has a disclosure policy.

For years, XRP (XRP 0.52%) has been touted as an explosive, high-upside cryptocurrency. But that certainly has not been the case in 2026. XRP is down 40% year to date and is dangerously close to falling through the $1 price level.

So, where will XRP be in three years? Will it finally fulfill its longtime promise, or will it continue to crater in value? Here are two possible scenarios.

Image source: Getty Images.

The bull-case scenario for XRP Let's start with the bullish scenario for XRP. In this scenario, the price of XRP soars to $10 or higher. According to Standard Chartered, XRP could hit a price of $12.50 by the end of 2028.

These price gains are based primarily on the rapidly growing pace of institutional adoption, as XRP becomes the primary focal point of an end-to-end blockchain-based payment system. XRP already plays a role in cross-border money transfers. If all goes according to plan, XRP will play an even bigger role within the traditional financial system.

Ripple, the company behind the XRP token, has already spent more than $3 billion on blockchain- and crypto-related acquisitions to make that happen. And Ripple has plenty to show for its efforts: The company is now valued at $50 billion. By way of comparison, that's more than Coinbase Global (COIN 0.33%), which has a market cap of $40 billion.

Today's Change

(

-0.52

%) $

-0.01

Current Price

$

1.13

The bear-case scenario for XRP There's just one problem with this bull-case scenario, however. It completely ignores the growing importance of stablecoins, which are digital currencies pegged 1:1 to the U.S. dollar. Often, these stablecoins can play the same role as XRP, thereby limiting its utility.

In this bear-case scenario, XRP becomes nothing more than a bridge currency, a settlement bridge, or a routing asset. It's how you get from point A to point B, and that's all. It is not a unit of account or a store of value. As soon as the XRP token fulfills its role, it goes back into circulation.

That could help to explain why Ripple launched a stablecoin of its own, known as Ripple USD (RLUSD 0.01%), in December 2024. In just 18 months, Ripple USD has skyrocketed to a market cap of $1.7 billion and now ranks among the top stablecoins in the world.

XRP vs. Ripple Over the next three years, I fully expect Ripple's blockchain-based payment system to gain additional traction with banks and financial institutions. As a result, Ripple's valuation will likely grow over time. Ripple already ranks as a top initial public offering (IPO) candidate, and there's at least an outside possibility that the company could go public at some point.

However, I don't expect XRP to go along for the ride. Right now, all the value is flowing to Ripple, and none is flowing to XRP. That's likely to continue as long as stablecoins remain popular.

So, don't believe the hype about XRP soaring in price to $10 or higher. If you're expecting XRP to make you a crypto millionaire, it's time to rethink your assumptions about the future of blockchain-based payments.

Coinbase (COIN) serves as a proxy play for Bitcoin, says @LikeFolio's Andy Swan, which can be seen in its downward price action alongside the cryptocurrency. LikeFolio's data points to Coinbase gaining market share but at the cost of doing so in a bearish crypto environment.

Coinbase on Thursday launched a new tool that gives AI agents the ability to trade and transact directly on users' behalf, representing a broader bet that AI agents will become a primary interface for people's financial activity.

Coinbase for Agents will initially allow agents like ChatGPT or Claude to execute crypto trades using natural language instructions. For example, customers can prompt their agent to rebalance portfolios, identify trading opportunities, execute strategies and manage positions over time. It will eventually expand these capabilities to stocks and predictions.

Additionally, using Coinbase's machine-to-machine payments protocol, called x402, agents can pay directly for digital services like paywalled research, data APIs and on-demand compute without a human in the loop — and execute trades based on those insights. The company sees this stage of agentic payments, which lets customers bypass the need to manage traditional logins or subscriptions, as a precursor to agentic shopping, where agents browse, find the best deals, select and make purchases on users' behalf.

"The whole idea is to give agents access to money and, through that financial independence, improve their set of capabilities to pretty much anything on the internet," Lincoln Murr, Coinbase's AI product lead, told CNBC. "In the 2010s, every internet company dealt with the transition from desktop and web into a mobile environment. And now in the late 2020s, we're seeing the exact same thing happen where agents are going to be the new primary economic actors on the internet."

The launch comes right in the middle of an AI boom where agentic systems are one of the hottest investing themes. At the same time, the crypto sector is still in a relatively subdued, post-cycle slump – making the launch both a hype-aligned bet on AI and a contrarian push into a softer trading environment.

Coinbase earns trading fees on agent-executed trades, and for payments it captures fees and spreads on USDC movement, which serves as the settlement currency for agentic transactions. It also benefits from increased transaction volume on Base, its in-house Layer 2 blockchain that underpins these transactions.

The x402 protocol was created in May 2025 and has seen more than 100 million transactions since its debut, Murr said. There are about 157,000 agents acting as buyers using the protocol in the past 30 days, according to x402scan.com.

"We saw immediate demand and interest in the ability for agents to pay for things autonomously and that was a huge waking up moment for us [on] the ability of agents to become these new primary financial actors across the internet," he said.

Key Takeaways SWKS beat Q2 FY26 revenue and EPS expectations, though EPS fell 7% and sales slipped 1%.Broad Markets rose 10% y/y to 42% of sales; WiFi, data center and auto grew 30%.SWKS cited an Android OEM win greater than $1B through 2030 and guided Q3 revenues of $900-$950M. Skyworks Solutions (SWKS - Free Report) reported second-quarter fiscal 2026 earnings of $1.15 per share, which beat the Zacks Consensus Estimate by 10.6% but declined 7.3% year over year.

Revenues came in at $943.7 million, down 1% from the year-ago quarter and beat the consensus mark by 4.8%. Broad Markets stood out again, representing 42% of sales and rising 10% year over year, supported by momentum across WiFi, data center and automotive.

SWKS Shows Upside Across Mobile and Broad MarketsSWKS said results landed above the high end of its outlook, citing upside in both mobile and broad markets. Management pointed to solid demand signals, lean channel inventories and strength in premium, high-complexity solutions as supportive factors during the reported quarter.

On the call, the company also highlighted nine consecutive quarters of growth in Broad Markets, with roughly $400 million of quarterly revenues in that business. WiFi, data center and automotive together made up nearly two-thirds of Broad Markets and collectively grew 30% year over year, reinforcing the company’s diversification push.

Skyworks’ Mobile Mix Reflects Customer ConcentrationMobile represented 58% of total revenues in the reported quarter, and Skyworks said performance ran ahead of its expectations on healthy sell-through at its top customer and product execution. Customer concentration remained elevated, with the largest customer accounting for approximately 60% of revenue.

Management reiterated its view that long-term RF content opportunity remains intact, citing a stronger unit backdrop and the potential for rising RF complexity. The company also said it has not seen an impact from broader industry discussion around memory supply and pricing so far, while noting it is monitoring the environment closely.

Skyworks Details Design Win and Technology Road MapSkyworks emphasized a multi-generational design win with a leading Android OEM that is expected to generate over $1 billion in revenues through 2030. Management characterized the award as incremental business in the premium segment and said it reflects technology differentiation and collaboration with the customer across multiple product generations.

The company also outlined product momentum across several fronts, including BAW filters targeting early 6G FR3 spectrum and next-generation RF front-end solutions supporting frequencies above 7 gigahertz. It additionally cited expansion in timing products, including new clock buffers aimed at data center, wireless infrastructure and PCIe Gen 7 applications and said it is engaged with customers on early WiFi 8 programs.

SWKS Margins Hold as Input Costs Stay a HeadwindProfitability was steady despite cost pressures. Gross profit was $425 million, translating to a gross margin of 45%, which management said aligned with the midpoint of guidance. However, on a year-over-year basis, gross margin contracted 160 basis points (bps).

Operating expenses on a GAAP basis were $343.2 million, up 16.6% year over year. Research & development expenses increased 13.9% year over year, while selling, general and administrative expenses jumped 36%.

Operating income on a non-GAAP basis was $189 million, down 15% year over year. Operating margin of 20% contracted 330 bps year over year. The company said higher input costs remained a modest headwind, but it has been working to contain those pressures through cost controls and selective price adjustments.

SWKS Balance Sheet Stays Flexible, Dividend ContinuesSkyworks ended the quarter with approximately $1.4 billion in cash and investments and $1 billion in debt, maintaining what management described as a strong balance sheet with flexibility to support strategic priorities.

The company paid $107 million in quarterly dividends and declared a cash dividend of 71 cents per share, payable June 16, 2026, to stockholders of record as of May 26, 2026.

Management also noted that, under operating covenants tied to its merger agreement, it supported Qorvo’s $400 million share repurchase during the quarter.

Skyworks Guides for Seasonal Mobile and Steady Broad MarketsFor the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million. Management anticipates mobile to decline low single digits sequentially, consistent with typical seasonality, while Broad Markets is expected to rise modestly sequentially and represent about 43% of sales, up high single digits year over year.

Gross margin is projected to be approximately 44.5% to 45.5%, with operating expenses expected between $235 million and $245 million. Below the line, Skyworks guided about $4 million in other expenses, a 10% effective tax rate and a diluted share count of 151 million shares, with expected earnings of $1.03 per share at the midpoint of the revenue range.

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

Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Docebo (DCBO - Free Report) , Diodes (DIOD - Free Report) and Keysight Technologies (KEYS - Free Report) . Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diodes, Docebo and Keysight Technologies are set to report their quarterly results on May 7, 8 and 19, respectively. Year to date, shares of Diodes and Keysight Technologies have jumped 128% and 75.2%, respectively, while Docebo has dropped 8.4%.

NEW YORK, May 08, 2026 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Skyworks Solutions, Inc. (NASDAQ: SWKS) breached their fiduciary duties to shareholders.

According to a federal securities lawsuit, Insiders at Skyworks caused the company to misrepresent or fail to disclose material adverse facts concerning the true state of Skyworks’ client base; notably, that its long-standing relationship with Apple, its largest customer, did not guarantee that Apple would maintain its business relationship with Skyworks for its anticipated iPhone launch. Additionally, insiders oversold Skyworks’ position and ability to capitalize on AI in the smartphone upgrade cycle.

If you currently own SWKS and purchased prior to July 30, 2024 please contact Justin Kuehn, Esq. by email at [email protected] or call (833) 672-0814. Kuehn Law pays all case costs and does not charge its investor clients. Shareholders should contact the firm immediately as there may be limited time to enforce your rights.

Why Your Participation Matters:

As a shareholder your voice matters, and by getting involved, you contribute to the integrity and fairness of the financial markets. Your investment. Your voice. Your future.™  

For additional information, please visit Shareholder Derivative Litigation - Kuehn Law.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts:
Kuehn Law, PLLC
Justin Kuehn, Esq.
53 Hill Street, Suite 605
Southampton, NY 11968
[email protected]
(833) 672-0814

Philadelphia, Pennsylvania--(Newsfile Corp. - May 10, 2026) - What is Happening? Grabar Law Office is investigating claims on behalf of shareholders of Skyworks Solutions, Inc. (NASDAQ: SKWS) as a securities fraud class action has survived a motion to dismiss. The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

If you purchased Skyworks Solutions, Inc. (NASDAQ: SKWS) shares prior to July 30, 2024, and still hold shares today, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Please visit https://grabarlaw.com/the-latest/skyworks-shareholder-investigation/, contact Joshua Grabar at [email protected], or call 267-507-6085 to learn more.

Why? Key allegations of a federal securities fraud class action complaint filed against Skyworks Solutions, Inc. (NASDAQ: SKWS) and certain of its officers have now survived a motion to dismiss.

The underlying complaint alleges that Skyworks, through certain of its officers, provided investors with material information concerning Skyworks' expected revenue for the fiscal year 2025. Defendants' statements included, among other things, confidence in Skyworks' ability to expand its mobile business and capitalize on its growth potential by investing in new technologies to diversify its portfolio of offerings. It is alleged that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Skyworks' client base; notably, that its long-standing relationship with Apple, its largest customer, did not guarantee that Apple would maintain its business relationship with Skyworks for its anticipated iPhone launch. Additionally, the Complaint alleges Defendants oversold Skyworks' position and ability to capitalize on AI in the smartphone upgrade cycle.

On May 6, 2026, the United States District Court for the Central District of California determined that: "Plaintiffs have shown with the requisite plausibility through their confidential witnesses, competitor statements, and analyst reports that material omissions could have been made." Further, "the allegations in the complaint, taken collectively, give rise to a cogent and compelling inference of scienter that is at least as strong as any opposing innocent inference."

What Can You Do Now? If you purchased Skyworks Solutions, Inc. (NASDAQ: SKWS) shares prior to July 30, 2024, and still hold shares today, you are encouraged to visit https://grabarlaw.com/the-latest/skyworks-shareholder-investigation/, contact Joshua Grabar at [email protected], or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.

#SKWS $SKWS #Skyworks

Attorney Advertising Disclaimer

Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: [email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296850

Source: Grabar Law Office

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

On May 20, 2026, Skyworks Solutions Inc SWKS shares rose 5.7% to a current price of $74.35. This recent uptick follows a strong performance over the past month, where shares have increased by 25.0%. Over the last year, the stock has fluctuated between a 52-week high of $90.90 and a low of $51.93.

GF Value™ verdict: Shares are currently priced at $74.35, which is 12.4% below the GF Value™ estimate of $84.90.GF Score™ of 73/100 indicates that SWKS is above average compared to its peers.Financial Strength rating of 8/10 suggests a solid foundation for the company. Is SWKS Overvalued or Undervalued? Skyworks Solutions Inc is currently trading at a price of $74.35, which is 12.4% undervalued when compared to the GF Value™ estimate of $84.90. This suggests a margin of safety for potential investors, as the stock is not only below its intrinsic value but also indicates an opportunity for appreciation. The GF Valuation label categorizes SWKS as modestly undervalued, which aligns with the notion that the current market price may not fully reflect the company's underlying value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation presents a favorable opportunity, investors should remain cautious and consider the broader market conditions and the company's growth prospects before making any decisions. The relatively low growth rank of 1/10 indicates potential challenges in the growth aspect of SWKS's business, which should be factored into any valuation assessment.

How Does SWKS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 30.9x 18.6x Forward P/E 15.2x N/A The current P/E ratio of 30.9x is significantly above the 5-year median P/E of 18.6x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while the stock appears undervalued in terms of GF Value™, the elevated P/E ratio indicates potential overvaluation based on historical earnings multiples.

What Does SWKS's GF Score™ Tell Us? Metric Rating GF Score™ 73/100 Financial Strength 8/10 Profitability 8/10 Growth 1/10 Valuation 10/10 Momentum 5/10 The GF Score™ of 73/100 indicates that SWKS has a relatively strong position in terms of financial strength and profitability, both rated at 8/10. However, the growth rank of 1/10 is a notable weakness, suggesting that the company may face challenges in expanding its revenue base. The valuation rank of 10/10 reinforces the idea that the stock is undervalued, but the low growth score raises concerns that should not be overlooked.

What Are Insiders Doing with SWKS Stock? In the last three months, there have been no insider transactions reported for Skyworks Solutions Inc. This lack of activity may suggest that insiders are not currently making significant moves to buy or sell shares, which could indicate confidence in the company's stability or a lack of urgency to capitalize on perceived undervaluation.

What This Means for Investors Based on the analysis, Skyworks Solutions Inc SWKS appears to be undervalued according to the GF Value™, which estimates the fair value at $84.90 compared to the current price of $74.35. However, the elevated P/E ratio and low growth score indicate potential risks that should be considered. Overall, the stock presents an opportunity, but investors should carefully assess the company's growth prospects and broader market conditions.

For the complete analysis, visit the Skyworks Solutions Inc SWKS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SWKS's GF Score™?

SWKS has a GF Score™ of 73/100, indicating that it performs above average compared to its peers in terms of financial strength, profitability, and valuation.

Is SWKS overvalued or undervalued?

SWKS is currently undervalued, with a GF Value™ estimate of $84.90 compared to its current trading price of $74.35.

What is SWKS's P/E ratio?

The P/E ratio for SWKS is 30.9x, which is significantly above its 5-year median P/E of 18.6x, indicating that it is trading at a premium compared to its historical valuation.

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

On June 02, 2026, Skyworks Solutions Inc SWKS shares rose 4.8%, closing at $79.14. The stock has shown a 52-week range of $51.93 to $90.90, reflecting significant volatility over the past year.

GF Value™ verdict: Shares are currently priced at $79.14, which is 6.6% undervalued compared to the GF Value™ estimate of $84.73.GF Score™: 75/100, indicating an above-average ranking based on key financial metrics.Most notable signal: Financial Strength is rated 8/10, highlighting a solid financial foundation. Is SWKS Overvalued or Undervalued? The current price of Skyworks Solutions Inc SWKS at $79.14 is 6.6% below the GF Value™ estimate of $84.73, indicating that the stock is undervalued. This margin of safety suggests an opportunity for potential gains, although it is essential to consider the overall market conditions and future performance estimates. The GF Valuation label categorizes SWKS as fairly valued, emphasizing that while there is undervaluation, caution is warranted due to market volatility and sector dynamics.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As such, the current undervaluation presents an interesting opportunity, particularly for those looking for growth potential in the semiconductor industry, where Skyworks operates.

How Does SWKS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 32.8x 18.6x Forward P/E 15.2x N/A Skyworks’ current P/E ratio of 32.8x is significantly above its 5-year median P/E of 18.6x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while there is an undervaluation based on intrinsic value, the stock's current P/E indicates a higher market expectation, which could warrant caution.

What Does SWKS's GF Score™ Tell Us? Metric Rating GF Score™ 75/100 Financial Strength 8/10 Profitability 8/10 Growth 1/10 Valuation 10/10 Momentum 7/10 The GF Score™ of 75/100 indicates a strong overall performance, particularly in Financial Strength and Profitability, which are rated 8/10. However, the Growth rank is notably low at 1/10, suggesting challenges in growth prospects for Skyworks. The Valuation rank is strong at 10/10, reinforcing the notion that the stock is currently undervalued based on intrinsic metrics. The Momentum rank of 7/10 indicates positive movement, but investors should monitor the growth aspect closely.

What Are Insiders Doing with SWKS Stock? In the last three months, there have been no insider transactions reported for Skyworks Solutions Inc SWKS . This lack of insider activity may suggest a neutral sentiment among executives regarding the company's short-term performance. Generally, a pattern of insider buying could indicate confidence in the company’s future, while selling could raise concerns. However, the absence of transactions also implies that insiders are not taking any immediate action, which can be interpreted as a stable outlook from their perspective.

What This Means for Investors Based on the current analysis, Skyworks Solutions Inc SWKS is considered undervalued with respect to the GF Value™ estimate. While the stock shows potential for growth based on its undervalued status, the elevated P/E ratio and low growth rank suggest that investors should proceed with caution and consider the broader market context.

For the complete analysis, visit the Skyworks Solutions Inc SWKS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SWKS's GF Score™?

SWKS has a GF Score™ of 75/100, which indicates an above-average ranking based on financial strength and profitability metrics.

Is SWKS overvalued or undervalued?

SWKS is currently undervalued, with a GF Value™ estimate suggesting a 6.6% upside opportunity from its current price.

What is SWKS's P/E ratio?

SWKS's P/E (TTM) is 32.8x, which is significantly above its 5-year median of 18.6x, indicating it is trading at a premium compared to its historical valuation.

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

Skyworks Solutions, Inc. (SWKS - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SWKS's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

SWKS has rallied 10.2% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates SWKS could be poised for a breakout.

The bullish case solidifies once investors consider SWKS's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 9 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Investors may want to watch SWKS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

Live demonstrations highlight real-time power control, efficiency and system performance across AI data center, EV and high-power applications June 10, 2026 03:01 ET  | Source: Skyworks Solutions, Inc.

NUREMBERG, Germany, June 10, 2026 (GLOBE NEWSWIRE) -- Skyworks Solutions, Inc. (Nasdaq: SWKS), a leading developer, manufacturer and provider of analog and mixed-signal semiconductors and solutions, will showcase its latest power and gate driver technologies at PCIM Europe 2026, with a focus on enabling next-generation AI data centers, electric vehicle (EV) platforms and industrial high-power applications.

“AI is re-architecting data center power delivery, driving the industry toward higher-voltage DC architectures and creating new requirements for efficiency, functional safety, observability and real-time control,” said Mario Battello, vice president of product line management at Skyworks. “Skyworks is scaling its opportunity across this transition with differentiated isolation, sensing, gate driver and high-voltage protection technologies that support the safe and efficient transfer of power from grid to rack. We are focused first on server power, with a broader opportunity across the infrastructure that can scale with every new AI data center.”

Exhibiting in Hall 4A, Stand 328, Skyworks will feature live demonstrations focused on two high-growth power domains: AI data center infrastructure and intelligent mobility.

Data Center Server Power Flow
An end-to-end view of energy conversion from the AC front end to the server rack, demonstrating how Skyworks isolation and gate driver technologies support efficiency, timing accuracy, noise immunity and reliability in AI data center power architectures.SelVCD™ Technology
Skyworks’ Selectable Variable Current Drive technology, enabling current-driven switching control without added digital complexity to help customers reduce EMI, improves efficiency and accelerate design cycles in data center and industrial power systems.Traction Inverter Dynamometer
An EV inverter optimization platform simulating Skyworks’ software-configurable gate driver technology for SiC and IGBT power devices, connecting device-level switching behavior to vehicle-level energy flow.ProVCD™ Technology
Digitally tunable gate-drive technology that improves efficiency and reduces design complexity, with Si829x integration delivering double-digit reductions in board space, BOM and cost. To learn more about Skyworks at PCIM 2026, visit skyworksinc.com/en/about/PCIM-Europe-2026.

About Skyworks

Skyworks Solutions, Inc. is empowering the wireless networking revolution. We are a leading developer, manufacturer and provider of analog and mixed-signal semiconductors and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet and wearables.

Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500® market index (Nasdaq: SWKS). For more information, please visit skyworksinc.com.

Safe Harbor Statement

Any forward-looking statements contained in this media alert are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include without limitation information relating to future events, results and expectations of Skyworks. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “forecasts,” “intends,” “believes,” “plans,” “may,” “will” or “continue,” and similar expressions and variations or negatives of these words. Actual events and/or results may differ materially and adversely from such forward-looking statements as a result of certain risks and uncertainties including, but not limited to, our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; our ability to develop, manufacture, and market innovative products and avoid product obsolescence; our ability to compete in the marketplace and achieve market acceptance of our products; the level of widespread deployment or adoption of commercial 5G networks, AI and other new technologies; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials and supplier components; the quality of our products; our products’ ability to perform under stringent operating conditions; and other risks and uncertainties identified in the “Risk Factors” section of Skyworks' most recent Annual Report on Form 10-K (and/or Quarterly Report on Form 10-Q) as filed with the Securities and Exchange Commission (“SEC”). Copies of Skyworks' SEC filings can be obtained, free of charge, on Skyworks' website (www.skyworksinc.com) or at the SEC's website (www.sec.gov). Any forward-looking statements contained in this media alert are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Note to Editors: ProVCD™, SelVCD™, Skyworks and the Skyworks symbol are trademarks or registered trademarks of Skyworks Solutions, Inc., or its subsidiaries in the United States and other countries. Third-party brands and names are for identification purposes only and are the property of their respective owners.

Contact Data Media Relations: Constance Griffiths (949) 230-4867 Investor Relations: Raji Gill (949) 508-0973

Issued on behalf of Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80)
A wave of U.S. government investment is accelerating quantum computing — and with it, the urgency for organizations to protect data that must stay confidential for years or decades to come.

, /PRNewswire/ -- USA News Group News Commentary – There is a quiet contradiction running through the most exciting technology story of the decade. The same breakthroughs that make quantum computing so promising — the ability to solve problems that would stall the most powerful classical machines — also threaten to unravel the encryption that protects nearly every sensitive digital record in existence. As governments rush to fund the race for quantum capability, a smaller field of companies — among them Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80) — is making a pointed argument: the more powerful these machines become, the more urgent it is to defend the data they could one day break.

That argument moved into sharper focus in late May, when Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80) — a post-quantum cybersecurity company focused on quantum-resilient data protection, identity security, secure storage and cryptographic migration readiness — weighed in on a major signal from Washington. The company commented on reports that the U.S. Department of Commerce had entered into nine letters of intent to provide approximately US$2 billion to support the U.S. quantum computing sector, an investment QSE framed as evidence that quantum has crossed from research curiosity into national technology strategy.

"Government investment at this scale sends a clear message: quantum computing is moving from research into national technology strategy," said Ted Carefoot, Chief Executive Officer of QSE. "That progress is exciting, but it also accelerates the need for organizations to understand and address their post-quantum cybersecurity exposure. Sensitive data encrypted today may need to remain confidential for years or decades, which is why preparation cannot wait."

The "Harvest Now, Decrypt Later" Problem
Carefoot's point about data that must remain confidential for years or decades gets at the heart of why post-quantum security is not a problem organizations can comfortably defer. Encrypted information that is intercepted today can be stored cheaply and indefinitely, waiting for the day a sufficiently capable quantum computer can unlock it. For records with long shelf lives — government files, financial data, healthcare records, critical-infrastructure systems and other long-lived sensitive information — the threat is not theoretical to the institutions responsible for protecting them. The clock on confidentiality starts the moment the data is created, not the moment quantum machines mature.

It is against that backdrop that the U.S. funding commitment reads as something more than an industrial-policy headline. Each dollar accelerating quantum capability is, in QSE's framing, also a dollar shortening the runway organizations have to get their cryptographic houses in order. The company has argued that quantum investment and post-quantum readiness are, in Carefoot's words, "two sides of the same transformation" — and that as governments accelerate one, enterprises must accelerate the other.

From Awareness to Action
What sets QSE's recent messaging apart from the broader chorus of quantum commentary is that the company says it has already moved past the product-development stage and into commercial deployment. In a corporate update earlier in May, QSE described itself as operating a fully built, commercially available post-quantum cybersecurity platform — one designed to help organizations move, as the company puts it, from awareness to action.

The update carried specifics that are unusual for a company at this stage of a frontier market. QSE said it is generating revenue, currently serves 262 customer accounts, and is seeing growing pipeline activity across enterprise, government and regulated-industry channels. The company characterized this as a shift into a commercial scaling phase, following a period of product development, platform integration, certification milestones and strategic partner expansion.

"QSE is now operating from a position of commercial strength," Carefoot said in that update. "Our product suite is fully built, our technology is in market, and our focus has shifted decisively toward scaling revenue, expanding customer relationships and converting a growing pipeline of enterprise and government opportunities. We believe the combination of regulatory urgency, market readiness and QSE's differentiated platform creates a significant growth opportunity for the Company in 2026 and beyond."

The platform itself is organized around three plain-language functions. The first, Assess, helps organizations understand where their data and encryption may be vulnerable to future quantum threats. The second, Protect, secures sensitive data using quantum-resilient encryption, secure storage and deployment tools designed to work alongside existing systems. The third, Control Access, governs who can reach sensitive systems and data through quantum-secure login and identity tools. Taken together, QSE says, those functions support customers across the full post-quantum security lifecycle — from initial assessment and planning through deployment, identity protection, secure storage and ongoing security infrastructure.

Crucially, the company emphasizes that its approach is designed to strengthen existing security infrastructure without requiring a disruptive rip-and-replace process. For large institutions with sprawling legacy systems, the prospect of swapping out cryptography wholesale is daunting enough to encourage paralysis; QSE's pitch is that quantum resilience can be layered onto what organizations already run, lowering the barrier to getting started.

A Multi-Stream Commercial Model
Behind the three-function framework is a revenue model built to capture demand in more than one way. QSE has said its commercial model is generating recurring SaaS revenue while continuing to scale enterprise deployments, usage-based entropy and secure storage services, and on-premises hardware deployments for customers that require greater data autonomy and internal key control. That last category matters in sectors where institutions are unwilling — or, for regulatory reasons, unable — to hand control of their most sensitive keys to an outside cloud.

The company is also pursuing a partner-led expansion strategy, working through value-added distributors, resellers, system integrators and regional partners with established access to enterprise, government and regulated-industry customers. Management has said it believes this channel approach can accelerate market penetration, expand geographic reach and help convert pipeline opportunities into long-term customer relationships — a route that lets a relatively young company extend its reach without building out a massive direct sales force first.

Deepening the Bench
Scaling a frontier-technology company is as much about people as product, and QSE moved on that front in late May with the appointment of Michael Massing as Chief Technology Officer, effective June 1, 2026. Massing brings more than 30 years of experience across cybersecurity, cryptography, secure data management, artificial intelligence, blockchain, network architecture and advanced computing systems — a breadth that maps closely onto the technical demands of a post-quantum platform.

His résumé reads like a tour through the modern security industry. Massing previously served as CTO and VP of Engineering at TokenX Labs and LifeSite Inc., where he led the development of zero-knowledge authentication and secure digital asset management systems. He also served as Executive Director of Engineering at Dell SonicWall, where he managed the Unified Threat Management business unit and helped scale enterprise cybersecurity product lines to approximately US$400 million in annual sales. Earlier, he founded SecureCom Networks, later acquired by SonicWall, and Mass Technology Inc., providing technical solutions to organizations including Cisco, Sophos and NASA — with work on advanced computing systems and real-time operating systems supporting NASA's SETI initiatives. He holds eight issued patents in cryptography, networking and cybersecurity, and earned a B.S. in Electrical Engineering from Santa Clara University.

"Michael's appointment is an important step in QSE's next phase of growth," Carefoot said. "He brings deep cryptography expertise, enterprise cybersecurity experience and a proven record of building technologies that can scale into large commercial markets. As demand for post-quantum security accelerates, his leadership will be valuable as we continue expanding our platform, supporting customer deployments and pursuing larger commercial opportunities."

The appointment comes as QSE continues expanding its enterprise post-quantum security platform, including its QPA migration readiness system, qREK entropy infrastructure, QAuth identity platform, and decentralized encrypted storage architecture — the named building blocks that sit beneath the Assess, Protect and Control Access functions the company markets to customers.

A Crowded, Fast-Moving Field
QSE is not alone in racing to meet the post-quantum moment, and the breadth of the field underscores how seriously markets are taking the threat. On the cryptography-hardware side, SEALSQ Corp (NASDAQ: LAES) builds quantum-resistant semiconductors and public-key-infrastructure trust services, positioning itself as a pure-play in quantum-safe chips for connected-device, identity and IoT markets. On the software side, Arqit Quantum Inc. (NASDAQ: ARQQ) has pioneered a symmetric-key agreement platform designed to keep networked devices and data at rest secure against both conventional and quantum-enabled attacks, and has been expanding into telecom and enterprise channels through partnerships.

The urgency these security firms describe is, of course, driven by the progress of the quantum-computing builders themselves. IonQ, Inc. (NYSE: IONQ) remains the bellwether among publicly traded quantum-hardware companies, developing trapped-ion processors and quantum-networking systems — the very class of machines whose maturation defines the timeline security vendors are racing against. And at the enterprise level, established cybersecurity giants such as Palo Alto Networks, Inc. (NASDAQ: PANW) frame quantum readiness as an emerging extension of the broader security mandate they already serve, a signal that post-quantum protection is migrating from niche concern toward mainstream enterprise requirement.

Within that landscape, QSE's pitch is one of practicality and timing: a fully built platform, already in market, that layers quantum resilience onto existing systems. Readers can review the company's positioning in more detail on its USA News Group profile page.

Why It Matters Now
QSE's read on its own market is that post-quantum cybersecurity is quickly becoming a board-level, compliance-level and national-security priority. The company points to a convergence of forces — regulatory pressure, cryptographic migration requirements and enterprise demand — that it believes positions it to capitalize on the accelerating global transition toward post-quantum security infrastructure. Governments, regulators and large enterprises, the company argues, are no longer treating post-quantum security as a future consideration; they are beginning to demand concrete action, including cryptographic inventories, preparedness assessments, migration roadmaps and the implementation of quantum-resilient controls.

"Post-quantum cybersecurity is quickly becoming a board-level, compliance-level and national-security priority," Carefoot said. "With a solid client-base and revenue generation established, a fully built platform in market and a growing pipeline of enterprise and government opportunities, QSE is now focused on scaling aggressively across the sectors where quantum-resilient security is becoming mission-critical."

The story Washington is telling with its US$2 billion in letters of intent is, on its surface, a story about building quantum machines. QSE's contribution to the conversation is to flip the lens: every advance toward that capability is also a countdown for the data that quantum could one day expose. Whether the company's 262 customer accounts and multi-stream model prove to be an early foothold in a vast market or simply an early chapter, its central premise is hard to dismiss — that in the quantum era, building the machine and defending against it are not separate races, but the same one.

TRACK THE TREND WITH EAGLE EYE:
To help investors track sentiment and market-forum activity around developing stories like this one, MIQ offers Eagle Eye, a free investor-signal tool that scans market-forum discussion for emerging trends. It is available to everyone at EagleEye.usanewsgroup.com as a research aid — not investment advice — to help investors make more informed decisions.

CONTACT:
USANewsGroup.com
[email protected]
604-265-2873

SOURCES:
[1] Quantum Secure Encryption Corp., "Quantum Secure Encryption Provides Corporate Update as Company Scales Commercial Deployment," May 12, 2026 (Newsfile Corp.).
[2] Quantum Secure Encryption Corp., "Quantum Secure Encryption Highlights Post-Quantum Cybersecurity Urgency Following U.S. Quantum Computing Investment," May 22, 2026 (Newsfile Corp.).
[3] Quantum Secure Encryption Corp., "Quantum Secure Encryption Appoints Cybersecurity and AI Technology Veteran Michael Massing as Chief Technology Officer," May 26, 2026 (Newsfile Corp.).
[4] U.S. Department of Commerce / NIST, "Department of Commerce Announces Letters of Intent With 9 Companies for $2 Billion to Accelerate U.S. Leadership in Quantum Computing," May 2026.

DISCLAIMER:
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has previously been paid a fee for QSE - Quantum Secure Encryption Corp. advertising and digital media from the company directly which has since expired. There may be 3rd parties who may have shares QSE - Quantum Secure Encryption Corp., and may liquidate their shares which could have a negative effect on the price of the stock. Previous compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of QSE - Quantum Secure Encryption Corp. which were purchased as a part of a private placement, and in the open market. MIQ reserves the right to buy and sell, and will buy and sell shares of QSE - Quantum Secure Encryption Corp. at any time hereafter without any further notice. We also expect further compensation in the future as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Logo - https://mma.prnewswire.com/media/2838876/6003688/USA_News_Group_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/as-washington-pours-billions-into-quantum-computing-one-company-says-the-real-race-is-defending-the-data-302791826.html

Palo Alto Networks is a long-term Buy, supported by 28% organic NGS ARR growth and robust AI-driven portfolio expansion. NGS ARR headline growth (+60%) is acquisition-boosted; organic growth is 28%, with new net recurring ARR up 18%. RPO growth of 22% organically signals deepening customer commitments and validates PANW's integrated platform strategy.

Anthropic's Mythos model offered a much-needed lifeline to cybersecurity firms in the age of artificial intelligence.

Yet, this week's cybersecurity earnings offered a brutal reminder that even with tailwinds, sometimes good just isn't good enough as shares of CrowdStrike and Palo Alto Networks lost 8% and 3%, respectively.

"People probably got a little over their skis," said Joseph Gallo, a software analyst at Jefferies. "Both gave accelerating guides, but at the end of the day ... a lot of these AI benefits take time, and this is a multi-year process."

Cybersecurity stocks sold off early in the year as concerns that new AI tools, capable of building apps at lightning speed, would upend their business models and, by association, every software firm.

The introduction of Mythos, a model deemed too powerful to release because it could be easily used to exploit software vulnerabilities, renewed enthusiasm for the sector, boosting shares of CrowdStrike and Palo Alto Networks more than 70% each between April and the end of May.

Both companies were early partners in Anthropic's exclusive Project Glasswing testing program, which the AI lab expanded to 150 additional partners this week, including Rubrik and Tenable.

This quarter's earnings marked the first major test for that Mythos-driven rally, and upbeat results and aggressively optimistic AI commentary from both cyber giants weren't enough for investors demanding immediate signs of an AI windfall.

Palo Alto Networks and Crowdstrike year-to-date stock chart.

The concept of good not being enough is no new phenomenon on Wall Street. Even AI darling Nvidia has succumbed to this phenomenon after failing to meet lofty estimates.

Investors headed into earnings with a similar sentiment and the hope that AI tailwinds would help cyber firms blow earnings out of the box.

Wall Street found much to cheer in those prints, but investors may be overlooking the notion that these tailwinds could take months to pay off, Gallo said.

Typical enterprise sales cycles last nine to 12 months, meaning most signs of an uptick from AI likely won't show up until the 2027 calendar year. The fourth quarter of the calendar year, Gallo added, is typically the strongest buying season for customers as businesses reset their budgets for the new year.

If an enterprise "just launched an AI product in the last quarter or two, I don't think it's fair to expect this massive uptick already."

CEOs at the world's largest cyber companies made that point clear.

Read more CNBC tech newsBezos opens up about AI startup Prometheus after $12 billion raise: 'We're not being secretive'DoorDash lets customers use photos, prompts to order food and book reservations in latest AI pushAs OpenAI leans into enterprise business, Apple and Google set sights on the massesPalantir's Karp says businesses are 'unhappy' with the frontier AI labsPalo Alto CEO Nikesh Arora told analysts this week that demand is off the charts in the Mythos era and over 1,200 companies had reached out to the cybersecurity firm to talk AI strategy. So far, the company has held 800 meetings over the last six weeks, close to 100 of which Arora said he conducted.

While demand patterns are showing positive signs, he said analysts shouldn't expect an immediate "windfall" next quarter as businesses buy into cyber, but he anticipates "robust growth."

"I wouldn't get ahead of my skis and start throwing the kitchen sink and numbers for cybersecurity companies, because there is still a process, a mechanism, a cycle that people buy in, and there's execution and deployment," he said.

CrowdStrike CEO George Kurtz echoed a similar sentiment.

The company lifted its fiscal 2027 net new annual recurring revenue growth on AI tailwinds.

Kurtz told analysts in an earnings call that AI detection and response, or AIDR, is a huge new segment that could dwarf the endpoint security market but is only in the "early innings." The company's second-quarter pipeline has already surpassed $50 million, he added.

"Once it goes really mainstream and entire companies adopt it across all of their employee and workloads, I think you're going to see just another increase in incremental opportunities," he said.

watch now

Palo Alto Networks (PANW - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this security software maker have returned +30.9%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Security industry, which Palo Alto falls in, has gained 42.8%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Palo Alto is expected to post earnings of $0.96 per share for the current quarter, representing a year-over-year change of +1.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $3.72 for the current fiscal year indicates a year-over-year change of +11.4%. This estimate has changed +0.4% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $3.99 indicates a change of +7.5% from what Palo Alto is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Palo Alto.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Palo Alto, the consensus sales estimate of $3.35 billion for the current quarter points to a year-over-year change of +32.1%. The $11.41 billion and $13.71 billion estimates for the current and next fiscal years indicate changes of +23.7% and +20.2%, respectively.

Last Reported Results and Surprise HistoryPalo Alto reported revenues of $3 billion in the last reported quarter, representing a year-over-year change of +31.1%. EPS of $0.85 for the same period compares with $0.8 a year ago.

Compared to the Zacks Consensus Estimate of $2.94 billion, the reported revenues represent a surprise of +2%. The EPS surprise was +4.94%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Palo Alto is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Palo Alto. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

The cybersecurity ETF that some marketing committee decided to brand Themes Cybersecurity ETF (NASDAQ:SPAM) is having the kind of year that makes you forget its ticker is the universal shorthand for unwanted email. Through the first five months of 2026, SPAM is up 27.54%, climbing from $30.65 on December 31, 2025 to $39.09 on June 5, 2026. The S&P 500, via the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), is up 8.16% over the exact same window. That is more than three times the broad market, achieved by a fund whose entire pitch is sitting in a basket of 36 companies that sell digital locks.

The ticker irony is real. The performance is genuine.

What a tripling of the S&P actually looks like in dollars If you put $10,000 into SPAM on the last trading day of 2025 at $30.65 and walked away, you were holding roughly $12,750 as of the June 5 close at $39.09. The same $10,000 in SPY bought in at $681.92 and finished at $737.55, worth about $10,820. One of those balances pays for a used car. The other pays for a tank of gas.

What makes the gap stranger is how recently SPAM was the laggard in this story. As of February 10, 2026, the fund had returned just 19.4% since its December 2023 launch, well behind the S&P over the same stretch, with a tiny $2.4 million in assets under management and a portfolio dragged down by losses in top names like CrowdStrike and Palo Alto Networks. Four months later, the same fund is the one putting up the numbers people screenshot.

The mechanism behind the outperformance SPAM tracks the Solactive Cyber Security Index, holds 36 cybersecurity stocks, and charges 0.35%. That is the wrapper. The engine is something else.

Cybersecurity in 2026 is a sector where the demand side and the threat side are both being fed by the same money. AI capex is at multi-year highs (Vanguard pegs the baseline forecast for corporate capital expenditure growth at 7.0% through 2026, well above the 2023 to 2024 pace of 3.8%), and a meaningful share of that spending is going into infrastructure that needs to be defended. At the same time, attackers are using the same generative tools to write better phishing, automate intrusion, and probe networks at scale. When the offense and the defense are both buying more compute, the companies selling the defense product line collect from both sides of the trade.

That backdrop is showing up in analyst coverage. Zacks projects cybersecurity spending growing at a 13.8% CAGR from 2026 to 2034, reaching $699.39 billion, and frames the category as a beneficiary of both AI adoption and rising geopolitical tension. Goldman Sachs goes further in its 2026 outlook, calling out economic security as a prominent theme for 2026, tied to NATO defense commitments, reindustrialization, and supply chain resilience. Cybersecurity sits at the intersection of every one of those.

Which is to say SPAM is winning because the names inside, the CrowdStrike, Palo Alto Networks, Fortinet, and Akamai of the holdings list, are being repriced as durable beneficiaries of the same AI capex cycle that is carrying the rest of the tape, rather than as discretionary IT line items that get cut when budgets tighten.

The momentum is fresh, and that matters Most of SPAM’s 2026 gain came late. The fund is up 14.61% in the last month alone, climbing from $34.10 on May 6 to $39.09 on June 5. SPY, over the same one-month window, returned roughly 0.5%. A run that concentrated tells you something. Either the market just figured out a thesis it had been ignoring, or a thesis it already believed got a fresh catalyst. The bullish technical coverage piling up in late May, including a Stock Traders Daily note on May 29 calling out a sustained breakout and compelling upside potential due to a lack of resistance levels above the current price, fits the second story more than the first.

One number to file away. SPAM is down 2.56% over the last week, with the most recent session a 4.44% drop on June 5. A fund that just ran 14% in a month and then gave back a couple of percent in five sessions is doing what concentrated thematic funds do. The volatility is part of the price of admission.

What to watch from here The honest read is that SPAM’s 2026 run is real, mechanism-driven, and tied to a spending cycle that the major investment houses expect to keep running through next year. It is also a $2.4 million AUM fund holding 36 names in a single thematic sleeve, which is the textbook setup for sharp drawdowns when the AI capex narrative gets challenged. Goldman flags exactly this risk, noting that a marked reversal and broad unwind of AI-related investments could be the precursor to a hard landing.

The indicators worth tracking are the quarterly capex guides from the hyperscalers, the billings and net new ARR numbers from CrowdStrike and Palo Alto when they report, and the Bureau of Economic Analysis private fixed investment data that Vanguard cites in its 7.0% baseline forecast. If those three keep printing in the same direction, the mechanism that produced this gap holds. If any of them rolls over, a 36-stock concentrated cybersecurity ETF with a four-letter joke for a ticker is going to give back the outperformance faster than it earned it. That is the trade you are taking when you buy SPAM today: the next print of those three numbers, not the run that already happened.

, /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW) and Deutsche Telekom (XETRA: DTE) today announced Sovereign Cortex with T Security. This solution brings the Palo Alto Networks Cortex® AI-driven SecOps platform to Europe's most regulated industries, with data sovereignty controls independently governed by Deutsche Telekom.

Today's AI-driven threat landscape demands immediate, real time effective cybersecurity. Yet many of Europe's regulated organisations – in healthcare, the public sector, financial services and critical national infrastructure – face a fundamental challenge: adopting cloud-delivered AI security, while meeting Europe's growing sovereignty requirements. Increasingly codified in GDPR, NIS2 and DORA and equivalent European frameworks, these requirements demand demonstrable controls that go beyond data residency: control over who can access data, how it is encrypted, how provider access is audited, and how it is handled in support operations.

Sovereign Cortex with T Security addresses these requirements and enables Europe's most regulated organisations to adopt cloud-delivered security without sovereignty compromise. Anchored by Deutsche Telekom, as the independent European trust partner, it delivers the full capabilities of the Cortex platform with purpose-built sovereignty controls for Europe's regulatory environment.

In addition to the data residency controls we provide customers for all of our cloud services, Sovereign Cortex with T Security provides additional sovereign controls for every layer of the environment. This includes customer and systems (telemetry) data, encryption keys, and independently audited access logs. Furthermore, all support personnel are based exclusively in Europe, and all contractual agreements are governed by European law.

Helmut Reisinger, CEO of EMEA at Palo Alto Networks
"European organisations — from public authorities to critical infrastructure operators — have been clear with us: they need real time AI-driven security and they need verifiable data sovereignty controls, and they should not have to choose between them. This is our direct response to what customers and regulators across Europe have been asking for – a service that honours Europe's sovereignty, maintains the security effectiveness and modular platformization our customers depend on, and reflects the trust they place in us."

Thomas Tschersich, CEO Deutsche Telekom Security GmbH and CSO Deutsche Telekom AG
"Our joint offering is currently unique in Europe at this level of quality. We meet the compliance requirements of NIS2, DORA, and KRITIS with respect to data sovereignty — without asking our customers to compromise on the effectiveness of their cyber defence."

A customer-led approach to sovereignty
This solution reflects direct engagement with regulated organisations and public authorities across Europe — designed around the specific, verifiable controls they require, not a broad interpretation of sovereignty. It is built to evolve as sovereignty regulation across Europe develops.

Sovereign Cortex with T Security will initially be available to organisations in healthcare, financial services, the public sector and critical national infrastructure, with broader availability to follow. The initial release is planned for Q3 2026.

Learn more about how Palo Alto Networks and Deutsche Telekom are bringing AI-driven security to European industries.

About Palo Alto Networks
Palo Alto Networks (NASDAQ: PANW), the global AI cybersecurity leader, protects our digital way of life with a comprehensive portfolio of cybersecurity solutions and platforms across Network, Cloud, Security Operations, AI and Identity. Trusted by 70,000+ customers and powered by Unit 42 threat intelligence, our AI-driven platforms eliminate complexity, empowering enterprises to modernize with confidence and securing the speed of innovation. Explore the future of security at www.paloaltonetworks.com.

About Deutsche Telekom
Deutsche Telekom (XETRA:DTE) is Europe's leading digital telco company, serving around 220 million customers across mobile, fixed-network and IT services. Through its subsidiaries Deutsche Telekom Security and T-Systems, the Group is also one of Europe's largest providers of cybersecurity and managed security services. With security operations centers across Europe, an end-to-end European network and IT infrastructure, and decades of experience serving regulated industries and public-sector customers, Deutsche Telekom provides the European trust anchor for sovereign digital services. Learn more at www.telekom.com/companyprofile.

Forward-Looking Statements
This release contains forward-looking statements that involve risks, uncertainties and assumptions, including, without limitation, statements regarding the benefits, impact, or performance or potential benefits, impact or performance of our products and technologies or future products and technologies. These forward-looking statements are not guarantees of future performance, and there are a significant number of factors that could cause actual results to differ materially from statements made in this release. We identify certain important risks and uncertainties that could affect our results and performance in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q, and our other filings with the U.S. Securities and Exchange Commission from time-to-time, each of which are available on our website at investors.paloaltonetworks.com and on the SEC website at www.sec.gov. All forward-looking statements in this release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

While the market spent Friday selling tech, Hightower Chief Investment Strategist Stephanie Link sees the sell-off as a way to get in on the next major opportunity. Speaking on CNBC the morning of June 8, Link argued that instead of treating cybersecurity as a sidecar to artificial intelligence, they should start treating it as the larger, more durable spending theme. Her view is that AI is the problem, and cybersecurity is the solution.

Her posture heading into this week is clear: “I’m actually looking for opportunities, not only in technology but across other sectors.”

“Cybersecurity Is Bigger Than AI” Thesis Link’s centerpiece argument is that cybersecurity will be a major growth sector in its own right. “I actually really do think that cybersecurity is really a place where you want to be. I think cybersecurity is bigger than AI because of AI. AI is not secure,” she said. Her logic is that every enterprise dollar spent on deploying AI creates a new attack surface that has to be defended, monitored, and remediated. That implies future spending on identity, network, cloud, and data security that scales alongside, and arguably outlasts, the initial AI capex wave.

That thesis lines up with what Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) is telling investors. CEO Nikesh Arora said in the Q3 FY26 release that “The latest advancements at the AI frontier have increased the level of urgency around cybersecurity, and redefined the shape of the industry for the coming years.” Next-Generation Security ARR hit $8.10 billion, up 60% YoY, and total revenue rose 31.1% in the quarter.

The Recent Tech Selloff Is a Gift According to Link’s framing, Palo Alto Networks (PANW) is down 10% despite 31% product revenue growth and Next-Gen Security products up 60%. PANW closed Friday at $272.05, with the stock down 3.42% on the week, even as Wall Street’s analyst target sits at $306.56.

The bigger dislocation, in her view, is Broadcom (NASDAQ:AVGO). “When a company just reported earnings up 54%… Total revenues up 78%. AI revenues up 143%, going to 200% next quarter, and software going from 8% to 31%. Like, to me, I think that that is an opportunity, especially as the earnings numbers are going higher,” Link said.

Broadcom fell 19.51% from June 3 to June 5. Yet CEO Hock Tan guided Q3 AI semiconductor revenue to $16 billion and told analysts, “2027 will exceed, very easily, $100 billion in 2027″ in AI sales, with potential to reach $150 billion. Broadcom’s market cap is just shy of $1.9 trillion, with about $75 billion in sales in the past 12 months.

Consolidation Favors the Giants Link expects the cybersecurity sector to consolidate aggressively. “I think you’re going to need more companies, and the bigger companies are going to get bigger and bigger and continue to do acquisitions and that sort of thing,” she said. That maps directly onto Palo Alto’s playbook: CyberArk and Chronosphere combined contributed $388 million to Q3 revenue, and management is guiding to a 40% adjusted free cash flow margin by FY28. For investors sharing Link’s thesis, the implication is to own the companies consolidating the industry, not just the acquisition targets.

The Macro Backdrop Link’s contrarian buying rests on a macro footing she considers favorable. “Unit labor costs came down 1.8% in the first quarter, and productivity went up 2.8%. That’s a great combination, right?” She pegs growth at around 3-3.5%, above trend. The 10-year Treasury yield closed the week at 4.47%, and the VIX spiked to 21.51, an elevated reading but well below the March peak.

As proof of how fast leading stocks can run, Marvell Technology (NASDAQ:MRVL) is up over 200% in two and a half months ahead of S&P 500 inclusion, with CEO Matt Murphy citing “exceptional AI-related bookings” in raising the FY27 and FY28 outlook.

Link’s message is that demand for cybersecurity will grow precisely because AI creates the threats that cybersecurity must defend against. However, investors should recognize that many of these stocks already trade at premium valuations. Palo Alto Networks trades at roughly 67 times forward earnings, meaning higher interest rates and market volatility could create significant swings in share prices even if the long-term investment case remains strong.