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Old Dominion Freight Line, Inc. (ODFL) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT

Company Participants

Jack Atkins - Director of Investor Relations
Kevin Freeman - President, CEO & Director
Adam Satterfield - Executive VP, Assistant Secretary & CFO

Conference Call Participants

Jonathan Chappell - Evercore ISI Institutional Equities, Research Division
Christian Wetherbee - Wells Fargo Securities, LLC, Research Division
Jordan Alliger - Goldman Sachs Group, Inc., Research Division
Thomas Wadewitz - UBS Investment Bank, Research Division
Eric Morgan - Barclays Bank PLC, Research Division
Ravi Shanker - Morgan Stanley, Research Division
Ken Hoexter - BofA Securities, Research Division
Jason Seidl - TD Cowen, Research Division
Bascome Majors - Stephens Inc., Research Division
Richa Talwar - Deutsche Bank AG, Research Division
Brian Ossenbeck - JPMorgan Chase & Co, Research Division
Matthew Milask - Stifel, Nicolaus & Company, Incorporated, Research Division
Ariel Rosa - Citigroup Inc., Research Division
Scott Group - Wolfe Research, LLC

Presentation

Operator

Good morning, and welcome to the Old Dominion Freight Line Second Quarter 2026 Earnings Conference Call.

[Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Jack Atkins, Director, Investor Relations. Please go ahead.

Jack Atkins
Director of Investor Relations

Thank you, operator, and good morning, everyone. Welcome to the second quarter 2026 conference call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today through August 5, 2026, by dialing 1 (855) 669-9658, access code 8521187. The replay of the webcast may also be accessed for 30 days on our website.

This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Old Dominion's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be

Blackbaud, Inc. (BLKB) Q2 2026 Earnings Call July 29, 2026 8:00 AM EDT

Company Participants

Tom Barth - Head of Investor Relations
Michael Gianoni - President, CEO & Non-Independent Vice Chairman of the Board
Chad Anderson - Executive VP & CFO

Conference Call Participants

Brian Peterson - Raymond James & Associates, Inc., Research Division
Robert Oliver - Robert W. Baird & Co. Incorporated, Research Division
J. Lane - Stifel, Nicolaus & Company, Incorporated, Research Division
Peter Burkly - Evercore ISI Institutional Equities, Research Division

Presentation

Operator

Good day, and welcome to Blackbaud's Second Quarter 2026 Earnings Conference Call. Today's conference is being recorded. I'll now turn the conference over to Tom Barth, Head of Investor Relations. Please go ahead, sir.

Tom Barth
Head of Investor Relations

Good morning, everyone. Thank you for joining us on Blackbaud's Second Quarter 2026 Earnings Call. Joining me on the call today are Mike Gianoni, Blackbaud's Chief Executive Officer, President and Vice Chairman; and Chad Anderson, Blackbaud's Executive Vice President and Chief Financial Officer.

Please note that our comments today contain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our most recent Form 10-K and other SEC filings for more information on those risks. Today's discussion will focus on non-GAAP results. Please refer to our press release and investor materials posted to our website for full details on our financial performance, including GAAP results, full year guidance and long-term aspirational goals.

We believe that a combination of GAAP and non-GAAP measures provide a more representative view of how we measure our business. Unless otherwise specified, we will refer only to non-GAAP financial measures on this call. Please note that non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP measures. We have also

Should You Buy the Dip in Real Estate Stocks Now?CBRE Group NYSE: CBRE reported continued momentum in the second quarter of 2026, with Core EPS rising 30% and revenue increasing 16%, as both its resilient and transactional businesses posted double-digit growth.

Chair and CEO Bob Sulentic said each of the company’s operating segments—Advisory, Building Operations & Experience, Project Management, and Real Estate Investments—grew segment operating profit by more than 25%. He said the company’s investments were being directed toward businesses that support current performance and long-term growth.

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3 Stocks to Watch as Home Prices Reach a New All-Time High“The momentum in CBRE’s business continued in the second quarter,” Sulentic said, pointing particularly to the company’s infrastructure and data center services operations.

Data Center and Infrastructure Services Expand Infrastructure Services generated nearly $1.2 billion of revenue during the quarter, an increase of more than 45% from a year earlier. Data Center Services revenue exceeded $700 million, rising nearly 30%, according to Sulentic. The reported figure reflects service revenue and excludes data center development land sales.

Bears covered shorts on this ETF, 3 stocks to pop on the shiftCBRE provides services including data center construction, maintenance and operational oversight. Sulentic said the company expects Data Center Services revenue to remain elevated at roughly 25% annual growth over the next five years and then grow at more than 15% as the data center construction cycle matures.

Looking further ahead, Sulentic said CBRE believes its Infrastructure business could reach $10 billion in revenue and more than $1 billion in EBITDA by 2030, with data centers representing a disproportionate share of that opportunity. He identified project and program management through Turner & Townsend, as well as Building Operations & Experience services, as the primary sources of growth.

More than half of CBRE’s data center revenue currently comes from downstream work, including managing, refitting and performing project work at operating data centers, Sulentic said.

Advisory, Operations and Project Management Results Chief Financial Officer Emma Giamartino said Advisory Services revenue rose 18%, exceeding the company’s expectations. Global leasing revenue increased 24%, supported by office and industrial activity, while global property sales revenue rose 20%.

U.S. leasing revenue increased 24%, including a 29% gain in office leasing and a 17% increase in industrial leasing. U.S. property sales revenue grew 24%, with double-digit increases across most major property types. Leasing revenue rose 27% in Europe, the Middle East and Africa and 19% in Asia-Pacific. Mortgage origination revenue increased 8%, as private-capital volume partly offset lower agency lending activity. Giamartino said CBRE generated its highest U.S. office leasing revenue for a second quarter, driven by large transactions in gateway markets. Legal and financial-services tenants have been upgrading and expanding space, while industrial demand was supported by third-party logistics providers and advanced manufacturing companies.

Sulentic said leasing conditions have largely moved beyond the disruption caused by the pandemic. He said companies are increasingly focused on office space as a tool for productivity, employee engagement and training. He also cited strong activity from law firms, which he said are using artificial intelligence for certain functions while maintaining headcount needs in other areas.

In Building Operations & Experience, revenue growth was led by Critical Infrastructure Services, where revenue increased 68%. Data Center Solutions grew nearly 30%, aided by hyperscaler demand and contributions from Pearce Services, which CBRE acquired in November 2025. Local Facilities Management posted high-teens revenue growth across regions, including nearly 35% growth in the Americas.

Project Management revenue rose 19%, including 30% growth in infrastructure-related activity and 13% growth in real estate-related services. Giamartino said transportation and utility projects in the U.K., Europe and the Middle East supported infrastructure performance, while hyperscaler and technology clients were active across regions. Project Management segment operating profit increased 28%, though she said operating leverage is expected to moderate in the second half because of cost timing.

Investment Management, Development and Capital Allocation Within Real Estate Investments, development operating profit exceeded the prior-year level without the benefit of data center land sales. CBRE said it had approximately $900 million of embedded gains in its development portfolio.

Investment Management operating profit increased modestly, while assets under management ended the quarter at approximately $155 billion. The business raised $1.6 billion of new capital, compared with $1.3 billion in the first quarter, but Giamartino said the amount was below company expectations as some investors, particularly those in the Middle East, remained cautious amid global volatility.

Trailing 12-month free cash flow totaled nearly $1.7 billion. CBRE said it remains on track to achieve near the high end of its 75% to 85% full-year free-cash-flow conversion target.

Since the end of the first quarter, the company repurchased more than $450 million of stock, bringing year-to-date repurchases to nearly $1 billion. Giamartino said CBRE continues to prioritize mergers and acquisitions, with share repurchases serving as a use of excess cash flow when acquisition opportunities do not materialize. She added that there is no significant incremental capital allocation assumed in the company’s updated guidance and that buyback activity is expected to taper off.

Outlook Raised for 2026 CBRE raised its 2026 Core EPS outlook to $7.80 to $7.90, from a prior range of $7.60 to $7.80. At the midpoint, the revised forecast represents 23% growth. The company expects more than 20% Core EPS growth in the third quarter, while fourth-quarter performance is expected to be comparable with the prior year, when CBRE recorded significant profits from its data center land program.

Assuming no material changes in macroeconomic conditions or interest rates, CBRE said it remains confident it can deliver at least 15% Core EPS growth in 2027. Giamartino said the company expects low-double-digit segment operating profit growth in Building Operations & Experience and Project Management, while Advisory growth is expected to moderate from 2026 levels but remain above mid-cycle levels.

Sulentic said the company expects property sales and debt origination to remain relatively strong through the remainder of the year, though higher interest rates or greater volatility could affect activity. He said CBRE’s broader growth strategy does not depend on a strong capital-markets environment.

About CBRE Group (NYSE:CBRE)CBRE Group, Inc is a global commercial real estate services and investment firm that provides a broad range of advisory, transactional and property-related services to occupiers, investors and owners. Its core activities include leasing and sales brokerage, facilities and property management, valuation and advisory, project and development services, and capital markets execution. The firm serves corporate occupiers, institutional investors, private owners and public entities across office, industrial, retail, multifamily and specialized property types.

In addition to traditional brokerage and management services, CBRE offers investment management capabilities and outsourced real estate solutions, combining market research, technology and data analytics to support portfolio strategy, transaction execution and asset operations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Albertsons is expanding AI to improve merchandising, labor planning and supply-chain efficiency.ACI is using its 51.2 million-member loyalty program to strengthen personalization and retail media.ACI aims to grow Own Brands to 30% sales penetration to support value and higher-margin growth. Albertsons Companies, Inc. (ACI - Free Report) is trying to modernize a traditional grocery model without losing the local-store convenience that anchors its business.

The strategy rests on digital sales growth, loyalty data, artificial intelligence and Own Brands. Those levers can improve personalization and productivity, but they also bring fulfillment costs, technology spending and execution risk.

ACI’s Digital Sales Growth Changes the Revenue MixAlbertsons’ first-quarter fiscal 2026 digital sales increased 13%, extending the role of e-commerce in its grocery model. The company’s delivery and Drive Up & Go curbside pickup services are built around store-based fulfillment, allowing stores to support online orders rather than relying only on separate warehouses.

That convenience can deepen customer engagement and support more frequent trips across grocery, pharmacy and digital channels. The offset is margin pressure. Gross margin declined in the quarter, with higher delivery and handling costs tied to digital sales growth among the primary factors.

Albertsons Uses AI to Fund Customer InvestmentAlbertsons is advancing technology across digital experience, merchandising intelligence, labor optimization and supply-chain efficiency. These tools are intended to improve shopping journeys, promotional planning, workforce scheduling, forecasting and replenishment.

The effort ties directly into a three-year, $2 billion productivity program. Albertsons expects savings to help fund pricing, fresh execution, personalization, digital convenience and store standards, rather than simply flowing through as short-term cost cuts.

ACI Turns Loyalty Data Into Personalized GrowthAlbertsons’ loyalty ecosystem gives the company a larger base for targeted promotions and customer insights. At the end of fiscal 2025, the loyalty program had 51.2 million members and supported personalized offers across digital and in-store channels.

That data also supports Albertsons Media Collective, its retail-media business. Better personalization can improve offer relevance, lift marketing efficiency and connect grocery, pharmacy and digital shopping into a more integrated customer relationship.

The Kroger Co. (KR - Free Report) and Walmart Inc. (WMT - Free Report) provide useful peer context because grocery retailers are increasingly competing on value, omnichannel convenience and retail-media monetization. Their presence raises the bar for Albertsons to turn data scale into measurable traffic and margin benefits.

Albertsons Expands Own Brands as Consumers Seek ValueOwn Brands remain another lever in Albertsons’ value strategy. The portfolio spans value, mainstream, premium and better-for-you products, including brands such as Signature Select, Lucerne and O Organics.

Management is targeting Own Brands sales penetration of 30% over time. Higher private-label adoption can improve differentiation, reinforce loyalty and support higher-margin growth, while helping cautious consumers manage grocery budgets.

ACI Stock Sell-Off Widens the Performance GapAlbertsons stock plunged 32.6% in the year-to-date period, sharply underperforming the Zacks sub-industry's growth of 3.3%. The Zacks Consumer Staples sector is up 10.1%, and the S&P 500 is up 8.1% over the same period.

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ACI’s Scores Reflect Promise With Uneven GrowthThe bottom line is that Albertsons has a credible technology and value agenda, but investors still need proof that digital scale and productivity savings can translate into stronger earnings growth. The latest outlook reflects pressure from weaker industry unit trends, a cautious consumer and the need for accelerated customer investment.

ACI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. It also has a VGM Score of A, Value Score of A, Momentum Score of A and Growth Score of C. The A-rated value and momentum indicators are supportive, while the C Growth Score points to a less even growth profile.

For investors, that mix fits the current setup. Albertsons has tools to improve engagement and efficiency, but the Hold rank suggests a more balanced near-term view as the market waits for clearer evidence of earnings acceleration.

Grew monthly recurring revenue 11% on both an as-reported basis and a normalized and constant currency basis year over year Annualized gross bookings grew 23% year over year, marking the second-highest volume on record, contributing to a record backlog Added a record 9,700 net interconnections in the quarter, continuing to extend the company's interconnection leadership Raising full-year 2026 guidance and long-term outlook on stronger demand, bookings, presales and continued execution across the business , /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today reported results for the quarter ended June 30, 2026.

"We delivered an exceptionally strong Q2. Monthly recurring revenue grew double digits for the third straight quarter, new interconnections on our platform hit a record level, and disciplined execution drove robust profit growth," said Adaire Fox-Martin, CEO and President, Equinix. "Our revised 2026 guidance and long-term financial outlook reflect momentum across the business. Customer demand is broad-based and growing, and Equinix is uniquely positioned to serve the networking, cloud and AI infrastructure needs of enterprises around the world."

Second-Quarter 2026 Results Summary

Revenues $2.625 billion, a 16% increase over the same quarter of the previous year on both an as-reported basis and a normalized and constant currency basis driven by strong underlying performance and one-time xScale® fees Operating Income $665 million, a 35% increase over the same quarter of the previous year, primarily from strong underlying operating performance and the impact of one-time xScale fees Net Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders $479 million, a 30% increase over the same quarter of the previous year, primarily from higher operating income $4.83 per share, a 29% increase over the same quarter of the previous year Adjusted EBITDA $1.396 billion, a record adjusted EBITDA margin of 53%, representing a 24% increase over the same quarter of the previous year on an as-reported basis, or a 22% increase on a normalized and constant currency basis AFFO and AFFO per Share $1.168 billion, a 20% increase over the same quarter of the previous year on an as-reported basis, or a 19% increase on a normalized and constant currency basis driven by strong operating performance and one-time xScale fees $11.78 per share, a 19% increase over the same quarter of the previous year on an as-reported basis, or an 18% increase on a normalized and constant currency basis Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

All per-share results are presented on a fully diluted basis.

2026 Guidance Summary

($ in millions, except per share data)

Prior FY 2026
Guidance

Guidance
Adjustment

Foreign
Exchange
Impact

Revised FY 2026
Guidance

Q3 2026
Guidance

Revenues

$10,144 - 10,244

+$100

($49)

$10,205 - 10,285

$2,525 - 2,575

Adjusted EBITDA

Adjusted EBITDA Margin %

$5,165 - 5,245

~51%

+$62

($27)

$5,210 - 5,270

~51%

$1,275 - 1,315

~51%

Recurring Capital Expenditures

% of Revenues

$280 - 300

~3%

+$13

($3)

$290 - 310

~3%

$70 - 90

3 - 4%

Non-recurring Capital Expenditures

(Excludes xScale and Real Estate Acquisitions)

~$3,800

+$1,438

($38)

$4,710 - 5,690

AFFO

$4,198 - 4,278

+$50

($18)

$4,240 - 4,300

AFFO per Share (Diluted)

$42.31 - 43.11

+$0.46

($0.18)

$42.69 - 43.29

Expected Cash Dividends

~$2,037

+$2

$0

~$2,039

For the third quarter of 2026, the company expects revenues to range between $2.525 and $2.575 billion, an increase of 9 - 11% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $1.275 and $1.315 billion, reflecting an adjusted EBITDA margin of approximately 51%.

For the full year of 2026, total revenues are expected to range between $10.205 and $10.285 billion, an increase of approximately 11 - 12% over the previous year on both an as-reported and a normalized and constant currency basis. Adjusted EBITDA is expected to range between $5.210 and $5.270 billion, reflecting an adjusted EBITDA margin of approximately 51%, an approximate +2% expansion over the previous year. AFFO is expected to range between $4.240 and $4.300 billion, an increase of 13 - 14% over the previous year on an as-reported basis, or 12 - 13% on a normalized and constant currency basis. AFFO per share is expected to range between $42.69 and $43.29, an increase of 11 - 13% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis. Total capital expenditures are expected to range between $5.000 and $6.000 billion.

Long-Term Outlook Summary (2027-2029)

The updated outlook reflects stronger-than-expected demand, accelerating bookings and presales activity, increased visibility from committed capacity, firm pricing and continued confidence in achieving attractive returns on invested capital.

($ in millions)

Prior Outlook (1)

Updated Outlook

(2027 - 2029)

Total Revenue Growth

(Annual Range) (2)

7 - 10%

10 - 13%

Adjusted EBITDA Margin

(In 2029)

52%+

53%+

Total Capital Expenditures

(Annual Range) (3)

$3,000 - 4,000

$5,000 - 7,000

AFFO per Share Growth

(Annual Range)

5 - 9%

9 - 12%

Dividend per Share Growth

(Annual Range)

8%+

Approximates AFFO
per Share Growth

(1)

Prior outlook as provided on Wednesday, June 25, 2025.

(2)

Represents range of estimated annual growth rates through 2029. Assumes average currency rates used in our financial results remained the same over comparative periods. Excludes any future M&A activity.

(3)

Capital expenditures exclude any future M&A activity, real estate acquisitions and our investments in the xScale joint ventures.

Q2 2026 Business Highlights

Delivered $424 million of annualized gross bookings. Added a record 9,700 net interconnections. Announced the global expansion of Equinix Fabric Geo Zones, the industry's first network-level data sovereignty solution. Expanded collaboration with Cisco and NVIDIA to help enterprises accelerate AI deployment through standardized AI factory architectures, secure infrastructure and real-world testing environments across Equinix's global data center footprint. Accelerated capacity expansion to meet growing customer demand, with nine new projects added since April and 52 projects underway across 33 markets worldwide. Published U.S. Community Principles and signed the Ratepayer Protection Pledge, reinforcing the company's longtime commitment to investing in communities in ways that address their needs and create lasting value. Further strengthened leadership team with the appointment of Chris Audie as Chief Product Officer and Bruce Owen as Executive Vice President, Global Markets. Ranked #1 for Innovation in The Wall Street Journal's inaugural Best Companies for the Future, underscoring the company's strong positioning for long-term success in an AI-driven economy. Q2 2026 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended June 30, 2026, along with its future outlook, in its quarterly conference call on Wednesday, July 29, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Wednesday, September 30, 2026, by dialing 1-866-427-6395 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

Equinix Investor Relations Resources About Equinix

Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies.

Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively.

Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods.

Equinix defines adjusted EBITDA as net income excluding:

income tax expense interest income interest expense other income or expense gain or loss on debt extinguishment depreciation, amortization and accretion expense stock-based compensation expense restructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activities impairment charges transaction costs gain or loss on asset sales AFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures.

Equinix defines FFO as net income attributable to common stockholders excluding:

gain or loss from the disposition of real estate assets depreciation and amortization expense on real estate assets adjustments related to unconsolidated joint ventures and non-controlling interests Equinix defines AFFO as FFO adjusted for:

depreciation and amortization expense on non-real estate assets accretion expense stock-based compensation expense stock-based charitable contributions restructuring and other exit charges, as described above impairment charges transaction costs impacts of straight-lining installation revenue impacts of straight-lining rent expense impacts of straight-lining contract costs amortization of deferred financing costs and debt discounts and premiums gain or loss from the disposition of non-real estate assets gain or loss on debt extinguishment an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes recurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenues net income or loss from discontinued operations, net of tax adjustments from FFO to AFFO related to unconsolidated joint ventures and non-controlling interests Equinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements.

Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above.

Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release. 

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in millions, except share and per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Recurring revenues

$    2,377

$    2,331

$    2,143

$    4,708

$    4,230

Non-recurring revenues

248

113

113

361

251

Revenues

2,625

2,444

2,256

5,069

4,481

Cost of revenues

1,230

1,186

1,084

2,416

2,168

Gross profit

1,395

1,258

1,172

2,653

2,313

Operating expenses:

Sales and marketing

239

241

221

480

450

General and administrative

462

444

451

906

889

Restructuring and other exit charges

6

6

2

12

12

Transaction costs

3

8

3

11

9

Impairment charges

17

2

1

19

1

(Gain) loss on asset sales

3

(20)

—

(17)

—

Total operating expenses

730

681

678

1,411

1,361

Income from operations

665

577

494

1,242

952

Interest and other income (expense):

Interest income

36

41

52

77

99

Interest expense

(151)

(148)

(135)

(299)

(257)

Other income (expense)

(28)

1

(7)

(27)

2

Gain (loss) on debt extinguishment

1

—

1

1

1

Total interest and other, net

(142)

(106)

(89)

(248)

(155)

Income before income taxes

523

471

405

994

797

Income tax expense

(46)

(56)

(38)

(102)

(87)

Net income

477

415

367

892

710

Net (income) loss attributable to non-controlling interests

2

—

1

2

1

Net income attributable to common stockholders

$      479

$      415

$      368

$      894

$      711

Earnings (loss) per share ("EPS") attributable to common stockholders:

Basic EPS

$      4.86

$      4.22

$      3.76

$      9.07

$      7.28

Diluted EPS

$      4.83

$      4.20

$      3.75

$      9.04

$      7.26

Weighted-average shares for basic EPS (in thousands)

98,641

98,392

97,835

98,516

97,674

Weighted-average shares for diluted EPS (in thousands)

99,136

98,727

98,050

98,931

97,968

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in millions, except headcount)

(unaudited)

June 30,

2026

December 31,

2025

Assets

Cash and cash equivalents

$       979

$    1,727

Short-term investments

1,245

1,500

Accounts receivable, net

1,256

1,001

Other current assets

842

897

Total current assets

4,322

5,125

Property, plant and equipment, net

25,222

23,584

Operating lease right-of-use assets

1,296

1,392

Goodwill

5,912

5,984

Intangible assets, net

1,204

1,316

Other assets

3,120

2,740

Total assets

$   41,076

$   40,141

Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses

$    1,263

$    1,350

Accrued property, plant and equipment

723

564

Current portion of operating lease liabilities

156

155

Current portion of finance lease liabilities

176

168

Current portion of mortgage and loans payable

9

17

Current portion of senior notes

1,170

1,299

Other current liabilities

323

340

Total current liabilities

3,820

3,893

Operating lease liabilities, less current portion

1,211

1,304

Finance lease liabilities, less current portion

2,104

2,187

Mortgage and loans payable, less current portion

11

686

Senior notes, less current portion

18,519

16,910

Other liabilities

1,013

983

Total liabilities

26,678

25,963

Redeemable non-controlling interest

25

25

Common stockholders' equity:

Common stock

—

—

Additional paid-in capital

22,015

21,642

Treasury stock

(23)

(24)

Accumulated dividends

(13,231)

(12,202)

Accumulated other comprehensive loss

(1,374)

(1,359)

Retained earnings

6,995

6,099

Total common stockholders' equity

14,382

14,156

Non-controlling interests

(9)

(3)

Total stockholders' equity

14,373

14,153

Total liabilities, redeemable non-controlling interest and stockholders' equity

$   41,076

$   40,141

Ending headcount by geographic region is as follows:

Americas headcount

6,009

5,917

EMEA headcount

4,719

4,706

Asia-Pacific headcount

3,203

3,093

Total headcount

13,931

13,716

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in millions)

(unaudited)

June 30,

2026

December 31,

2025

Finance lease liabilities

$    2,280

$    2,355

Term loans

1

673

Mortgage payable and other loans payable

19

30

Total mortgage and loans payable principal

20

703

Senior notes

19,689

18,209

Plus: debt issuance costs and debt discounts

164

150

Total senior notes principal

19,853

18,359

Total debt principal outstanding

$   22,153

$   21,417

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Six Months Ended

June 30,

2026

June 30,

2025

Cash flows from operating activities:

Net income

$       892

$       710

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

Depreciation, amortization and accretion

1,101

982

Stock-based compensation

273

240

Impairment charges

19

1

(Gain) loss on asset sales

(17)

—

Other operating activities

31

23

Changes in operating assets and liabilities:

Accounts receivable

(258)

(169)

Income taxes, net

(24)

(45)

Operating lease right-of-use assets

79

79

Operating lease liabilities

(77)

(71)

Accounts payable and accrued expenses

(80)

(149)

Other assets and liabilities

(155)

152

Net cash provided by operating activities

1,784

1,753

Cash flows from investing activities:

Purchases of equity investments

(264)

(48)

Distributions from equity investments

33

4

Purchases of short-term investments

(789)

(795)

Maturities and sales of short-term investments

1,054

450

Business acquisitions, net of cash acquired

—

(182)

Real estate acquisitions

(224)

(99)

Purchases of other property, plant and equipment

(2,834)

(1,739)

Proceeds from sale of assets, net of cash transferred

348

—

Settlement of foreign currency hedges

101

50

Investment in loan receivable

—

(45)

Net cash used in investing activities

(2,575)

(2,404)

Cash flows from financing activities:

Proceeds from employee equity programs

49

50

Payment of dividends

(1,029)

(928)

Proceeds from public offering of common stock, net of issuance costs

—

99

Proceeds from senior notes, net of debt discounts

2,419

2,066

Repayment of finance lease liabilities

(89)

(72)

Repayment of senior notes

(700)

—

Repayment of other debt

(682)

(1)

Other financing activities

26

(8)

Net cash provided by (used in) financing activities

(6)

1,206

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

(11)

53

Net increase (decrease) in cash, cash equivalents and restricted cash

(808)

608

Cash, cash equivalents and restricted cash at beginning of period

1,824

3,082

Cash, cash equivalents and restricted cash at end of period

$    1,016

$    3,690

Free cash flow (1)

$     (560)

$     (607)

Adjusted free cash flow (2)

$     (336)

$     (326)

(1)

We define free cash flow as net cash provided by operating activities plus net cash used in investing activities

(excluding the net purchases of and distributions from equity investments) as presented below:

Net cash provided by operating activities as presented above

$    1,784

$    1,753

Net cash used in investing activities as presented above

(2,575)

(2,404)

Less purchases of equity investments, net of distributions

231

44

Free cash flow

$     (560)

$     (607)

(2)

We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business

acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (as defined above)

$     (560)

$     (607)

Less business acquisitions, net of cash and restricted cash acquired

—

182

Less real estate acquisitions

224

99

Adjusted free cash flow

$     (336)

$     (326)

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

($ in millions, except per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

March 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Recurring revenues

$    2,377

$    2,331

$    2,143

$     4,708

$     4,230

Non-recurring revenues

248

113

113

361

251

Revenues (1)

2,625

2,444

2,256

5,069

4,481

Cash cost of revenues (2)

790

765

707

1,555

1,434

Cash gross profit (3)

1,835

1,679

1,549

3,514

3,047

Cash operating expenses (4):

Cash sales and marketing expenses

162

162

146

324

306

Cash general and administrative expenses

277

272

274

549

545

Total cash operating expenses (4)

439

434

420

873

851

Adjusted EBITDA (5)

$   1,396

$   1,245

$   1,129

$     2,641

$     2,196

Cash gross margins (6)

70 %

69 %

69 %

69 %

68 %

Adjusted EBITDA margins (7)

53 %

51 %

50 %

52 %

49 %

FFO (8)

$      854

$      758

$      689

$     1,612

$     1,336

AFFO (9)(10)

$   1,168

$   1,065

$      972

$     2,233

$     1,919

Basic FFO per share (11)

$     8.66

$     7.70

$     7.04

$     16.36

$     13.68

Diluted FFO per share (11)

$     8.61

$     7.68

$     7.03

$     16.29

$     13.64

Basic AFFO per share (11)

$   11.84

$   10.82

$     9.94

$     22.67

$     19.65

Diluted AFFO per share (11)

$   11.78

$   10.79

$     9.91

$     22.57

$     19.59

(1)

The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation

$      747

$      731

$      654

$     1,478

$     1,290

Interconnection

256

251

231

507

460

Managed infrastructure

56

57

62

113

125

Other

8

7

4

15

7

Recurring revenues

1,067

1,046

951

2,113

1,882

Non-recurring revenues

184

45

53

229

123

Revenues

$    1,251

$    1,091

$    1,004

$     2,342

$     2,005

EMEA Revenues:

Colocation

$      633

$      613

$      572

$     1,246

$     1,139

Interconnection

105

106

96

211

183

Managed infrastructure

40

41

38

81

73

Other

28

29

26

57

53

Recurring revenues

806

789

732

1,595

1,448

Non-recurring revenues

39

38

35

77

62

Revenues

$      845

$      827

$      767

$     1,672

$     1,510

Asia-Pacific Revenues:

Colocation

$      392

$      386

$      359

$       778

$       701

Interconnection

92

89

80

181

157

Managed infrastructure

16

17

17

33

34

Other

4

4

4

8

8

Recurring revenues

504

496

460

1,000

900

Non-recurring revenues

25

30

25

55

66

Revenues

$      529

$      526

$      485

$     1,055

$       966

Worldwide Revenues:

Colocation

$    1,772

$    1,730

$    1,585

$     3,502

$     3,130

Interconnection

453

446

407

899

800

Managed infrastructure

112

115

117

227

232

Other

40

40

34

80

68

Recurring revenues

2,377

2,331

2,143

4,708

4,230

Non-recurring revenues

248

113

113

361

251

Revenues

$    2,625

$    2,444

$    2,256

$     5,069

$     4,481

(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues

$    1,230

$    1,186

$    1,084

$     2,416

$     2,168

Depreciation, amortization and accretion expense

(421)

(405)

(361)

(826)

(704)

Stock-based compensation expense

(19)

(16)

(16)

(35)

(30)

Cash cost of revenues

$      790

$      765

$      707

$     1,555

$     1,434

(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below. We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below. We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".

Sales and marketing expense

$      239

$      241

$      221

$       480

$       450

Depreciation and amortization expense

(51)

(52)

(50)

(103)

(97)

Stock-based compensation expense

(26)

(27)

(25)

(53)

(47)

Cash sales and marketing expense

162

162

146

324

306

General and administrative expense

462

444

451

906

889

Depreciation and amortization expense

(85)

(87)

(91)

(172)

(181)

Stock-based compensation expense

(100)

(85)

(86)

(185)

(163)

Cash general and administrative expenses

277

272

274

549

545

Cash operating expense

$      439

$      434

$      420

$       873

$       851

(5)

We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:

Net income

$      477

$      415

$      367

$       892

$       710

Income tax expense (benefit)

46

56

38

102

87

Interest income

(36)

(41)

(52)

(77)

(99)

Interest expense

151

148

135

299

257

Other (income) expense

28

(1)

7

27

(2)

(Gain) loss on debt extinguishment

(1)

—

(1)

(1)

(1)

Depreciation, amortization and accretion expense

557

544

502

1,101

982

Stock-based compensation expense

145

128

127

273

240

Restructuring and other exit charges

6

6

2

12

12

Impairment charges

17

2

1

19

1

Transaction costs

3

8

3

11

9

(Gain) loss on asset sales

3

(20)

—

(17)

—

Adjusted EBITDA

$    1,396

$    1,245

$    1,129

$     2,641

$     2,196

Americas

641

516

466

1,157

909

EMEA

456

424

399

880

764

Asia-Pacific

299

305

264

604

523

Adjusted EBITDA

$    1,396

$    1,245

$    1,129

$     2,641

$     2,196

(6)

We define cash gross margins as cash gross profit divided by revenues.

(7)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

(8)

FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the disposition of real estate assets, depreciation and amortization expense on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Net income

$      477

$      415

$      367

$       892

$       710

Net (income) loss attributable to non-controlling interests

2

—

1

2

1

Net income (loss) attributable to common stockholders

479

415

368

894

711

Adjustments:

Real estate depreciation

361

351

312

712

609

(Gain) loss on disposition of real estate assets

3

(20)

1

(17)

1

Adjustments for FFO from unconsolidated joint ventures

11

12

8

23

15

FFO attributable to common stockholders

$      854

$      758

$      689

$     1,612

$     1,336

(9)

AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.

FFO attributable to common stockholders

$      854

$      758

$      689

$     1,612

$     1,336

Adjustments:

Installation revenue adjustment

8

8

8

16

10

Straight-line rent expense adjustment

(4)

4

5

—

8

Contract cost adjustment

(11)

(15)

(10)

(26)

(17)

Amortization of deferred financing costs and debt discounts

7

7

6

14

11

Stock-based compensation expense

145

128

127

273

240

Stock-based charitable contributions

3

—

3

3

3

Non-real estate depreciation expense

139

138

137

277

271

(Gain) loss on disposition of non-real estate assets

—

—

—

—

2

Amortization expense

51

52

50

103

98

Accretion expense adjustment

6

3

3

9

4

Recurring capital expenditures

(49)

(32)

(55)

(81)

(81)

(Gain) loss on debt extinguishment

(1)

—

(1)

(1)

(1)

Restructuring and other exit charges

6

6

2

12

12

Transaction costs

3

8

3

11

9

Impairment charges

17

2

1

19

1

Income tax expense adjustment

(8)

—

4

(8)

10

Adjustments for AFFO from unconsolidated joint ventures

2

(2)

—

—

3

AFFO attributable to common stockholders

$    1,168

$    1,065

$      972

$     2,233

$     1,919

(10)

 Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$    1,396

$    1,245

$    1,129

$     2,641

$     2,196

Adjustments:

Interest expense, net of interest income

(115)

(107)

(83)

(222)

(158)

Amortization of deferred financing costs and debt discounts

7

7

6

14

11

Income tax expense

(46)

(56)

(38)

(102)

(87)

Income tax expense adjustment

(8)

—

4

(8)

10

Straight-line rent expense adjustment

(4)

4

5

—

8

Stock-based charitable contributions

3

—

3

3

3

Contract cost adjustment

(11)

(15)

(10)

(26)

(17)

Installation revenue adjustment

8

8

8

16

10

Recurring capital expenditures

(49)

(32)

(55)

(81)

(81)

Other income (expense)

(28)

1

(7)

(27)

2

Adjustments for (gain) loss on asset dispositions

—

—

1

—

3

Adjustments for unconsolidated JVs and non-controlling interests

15

10

9

25

19

AFFO attributable to common stockholders

$    1,168

$    1,065

$      972

$     2,233

$     1,919

(11)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common stockholders is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share (in thousands)

98,641

98,392

97,835

98,516

97,674

Effect of dilutive securities:

Employee equity awards (in thousands)

495

335

215

415

294

Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)

99,136

98,727

98,050

98,931

97,968

Basic FFO per share

$     8.66

$     7.70

$     7.04

$     16.36

$     13.68

Diluted FFO per share

$     8.61

$     7.68

$     7.03

$     16.29

$     13.64

Basic AFFO per share

$    11.84

$    10.82

$     9.94

$     22.67

$     19.65

Diluted AFFO per share

$    11.78

$    10.79

$     9.91

$     22.57

$     19.59

SOURCE Equinix, Inc.

Key Takeaways ARES' Q2'26 EPS is estimated to be $1.29, suggesting a 25.2% year-over-year increase.Revenues are projected to rise 25.6% y/y, supported by higher AUM and management fees.Ares' AUM is expected to reach $669.9 billion, aided by inflows and favorable market performance. Ares Management (ARES - Free Report) is scheduled to announce second-quarter 2026 results on July 31, before the opening bell. Its quarterly revenues and earnings are likely to have increased on a year-over-year basis.

In the last reported quarter, results were primarily affected by higher expenses. Nevertheless, the higher assets under management (AUM) provided some support to the results.

ARES earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, delivering an average miss of 6%.

Ares Management Corporation Price and EPS SurpriseARES’s Q2 Earnings & Sales EstimatesThe Zacks Consensus Estimate for Ares Management’s quarterly earnings has been revised nearly 1% lower over the past seven days to $1.29 per share. The estimate indicates a 25.2% increase from the reported figure in the prior-year quarter.

The consensus estimate for quarterly sales is pegged at $1.32 billion, suggesting a 25.6% year-over-year increase.

Key Factors & Estimates for Ares Management in Q2ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. Despite a persistent backlog of private equity exits, deal activity improved in the second quarter of 2026. Further, continued fundraising momentum, along with strong investor demand across private credit and other alternative strategies, is likely to have supported AUM growth in the to-be-reported quarter. Overall expansion is expected to have remained steady, driven by the company’s scalable platform, rising perpetual capital base and expanding global distribution network. Backed by decent inflows and favorable market performance, Ares Management is expected to have witnessed a rise in its AUM balance.

The Zacks Consensus Estimate for total AUM of $669.9 billion indicates growth of 3.9% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $417.1 billion suggests a sequential rise of 4.4%.

The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $1.1 billion, which indicates 5.9% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $22.9 million suggests a 17.1% sequential rise. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $71.8 million, which indicates a decrease from the $73.9 million reported in the prior quarter.

ARES’ expenses have been increasing over the past few years, primarily driven by higher compensation and benefits, along with continued investments in fundraising and platform expansion. The expenses are also expected to have remained elevated in the second quarter due to the acquisition and integration-related costs associated with the recently acquired GCP International and BlueCove. Going forward, continued investments in scaling the global platform, integrating acquired businesses and pursuing growth initiatives may pressure near-term profitability.

What Our Model Predicts for Ares ManagementOur proven model does not conclusively predict an earnings beat for ARES this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of +1.48%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

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

Performance of Other Asset ManagersAmeriprise Financial’s (AMP - Free Report) second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter.

AMP’s results benefited from higher revenues and an improvement in assets under management and assets under administration balances to record levels. However, an increase in expenses was a headwind.

SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.

Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport for SEIC.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Ademi LLP is investigating CBIZ (NYSE: CBZ) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Grant Thornton Advisors.

Click here  to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995.  There is no cost or obligation to you.

CBIZ shareholders will receive $55.00 per share in an all-cash transaction valued at $5 billion. CBIZ insiders will receive substantial benefits as part of change of control arrangements.

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Live Coverage Updates appear automatically as they are published.

Live Updates Pinned 42 minutes ago

Live

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of ARM’s earnings.

Simply stay on this page, and new updates will appear below automatically. We expect Arm Holdings to release earnings shortly after 4:05 p.m. ET.

23 minutes ago

Live

What Guidance Would Actually Move the Stock Tonight, investors are going to be watching the company’s full-year framing. Wall Street’s Q1 FY27 consensus sits at $1.27 billion in revenue and $0.36 EPS, just above management’s own guide of $1.26 billion ± $50 million and $0.40 ± $0.04.

Arm Holdings (NASDAQ:ARM | ARM Price Prediction) typically guides conservatively in ranges and has beaten revenue while occasionally missing EPS as R&D climbed 43% YoY to $1,911 million.

Investors want commentary on royalty growth (Jason Child flagged “roughly 20-ish percent for the year”), AGI CPU customer commitments above $2 billion, and operating margin after compression from 52.8% to 49.1%.

Bullish: a raised FY27 outlook and expanded hyperscaler wins.

Bearish: soft Q2 guide, deeper margin compression, or another RPO decline beyond 7%.

25 minutes ago

Live

With Arm Holdings (NASDAQ:ARM) down 26.78% over the past month and Polymarket pricing a 94.6% beat probability, here are some of the top questions analysts might have for management.

Top 5 Analyst Questions Why does Q1 guidance imply a sequential drop to $1.26 billion from Q4’s $1.49B? Update on $2 billion AGI CPU demand and the Meta co-development roadmap? Royalty rate trajectory as Armv9 and CSS ramp? When does R&D (+43% YoY) stop compressing operating margin? Qualcomm/Nuvia trial exposure and China revenue visibility? Key Topics to Address RPO declining 7% YoY DreamBig integration and silicon strategy Hyperscaler share (~50%) and Google Axion, Microsoft Cobalt, NVIDIA Vera ramps Buzzwords to Listen For Agentic AI, AGI CPU, Neoverse, CSS, hyperscaler, silicon business Red Flags Margin compression without royalty acceleration Soft FY2027 commentary Full-chain put/call ratio at 1.26 signals hedging 1 hour ago

Live

Arm Holdings reports fiscal Q1 2027 results tonight following a sharp selloff in the past month. Management guided revenue to approximately $1.26 billion and non-GAAP EPS to $0.40, while Polymarket traders assign a 93.9% probability of an earnings beat.

The real test is whether royalty growth and hyperscaler design wins can support the stock. Arm’s valuation rests on the belief that AGI CPUs, Neoverse, and Armv9 can transform its licensing model into a dominant data center compute franchise.

A clean beat with stronger FY 2027 commentary would reinforce the AI thesis and suggest the recent drawdown went too far. Any softness in royalty rates, margins, or hyperscaler momentum would hand the narrative to skeptics calling for a much deeper rerating.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Arm didn't make the cut. Grab the names FREE today.

Arm Holdings (NASDAQ:ARM) reports fiscal Q1 2027 results after the market closes today at 4:05 PM ET. Shares currently trade around $233, testing investor conviction in the AI data center thesis CEO Rene Haas has built.

Momentum Meets a Rerating Arm closed FY26 strong. Q4 revenue hit $1.49B, up 20.06% YoY, and non-GAAP EPS came in at $0.60, beating the $0.5793 consensus. License revenue jumped 29% to $819M while royalties rose 11% to $671M, with data center royalty more than doubling. Full-year free cash flow skyrocketed 395.51% to $882M.

Since then, sentiment has cooled. Shares have dropped 15.53% over the past week and 30.23% over the past month, though ARM remains up 123.9% year to date. Non-GAAP operating margin compressed from 52.8% to 49.1% as R&D climbed 43% YoY to $1.911B, a tension I’ll be watching tonight.

Consensus Estimates Metric Q1 FY27 Consensus YoY Change Management Guide Revenue $1.265B +20% $1.26B ± $50M EPS (Non-GAAP) $0.4019 +15% $0.40 ± $0.04 Consensus sits right on management’s midpoint, meaning any surprise flows from mix, not the top line. Sell-side estimates are pretty much right in line with management’s guidance. That leaves royalty rate expansion and operating leverage as the swing factors on the bottom line.

Data Center Traction and Margin Discipline in Focus I will be watching four items tonight.

First, Arm AGI CPU traction. Management disclosed over $2B in customer demand across FY27-FY28, with Meta as lead co-developer. Any expansion of that pipeline reshapes the data center narrative.

Second, royalty mix. Data center royalty more than doubled last quarter. I will focus on whether Armv9 adoption and Neoverse deployments keep lifting the effective royalty rate, and how SAP’s Graviton migration and Cloudflare’s global rollout convert to units.

Third, operating margin. Analysts will be looking at whether Haas commits to margin recovery in FY27 or defends continued investment in the $100B+ 2030 data center opportunity.

Fourth, guidance credibility. Three consecutive EPS misses in Q1 through Q3 FY26 preceded the Q4 beat. I will be watching how management frames the FY27 outlook, ACV (last at $1,660M, up 22% YoY), and the $15B silicon forecast. Overhangs include the Qualcomm trial in Q4 calendar 2026 and the 25% U.S. semiconductor tariff.

Earnings History Quarter EPS Surprise Day-Of Move 1-Week Move 30-Day Move Q4 FY26 +3.57% -10.11% +7.12% +52.29% Q3 FY26 -48.68% +5.70% +10.20% +8.72% Q2 FY26 -33.69% -1.21% -11.34% -10.31% Q1 FY26 -0.31% -13.44% -4.11% -6.39% On average, shares moved +0.47% seven days after earnings over the past year.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Arm didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Clean Harbors, Inc. (CLH) Q2 2026 Earnings Call July 29, 2026 9:00 AM EDT

Company Participants

Tim Rodenberger
Eric Gerstenberg - Co-CEO, Co-President & Director
Michael Battles - Co-CEO, Co-President & Director
Eric Dugas - Executive VP & CFO

Conference Call Participants

Patrick Brown - Raymond James & Associates, Inc., Research Division
Noah Kaye - Oppenheimer & Co. Inc., Research Division
James Schumm - TD Cowen, Research Division
Adam Bubes - Goldman Sachs Group, Inc., Research Division
Jerry Revich - Wells Fargo Securities, LLC, Research Division
James Ricchiuti - Needham & Company, LLC, Research Division
Shlomo Rosenbaum - Stifel, Nicolaus & Company, Incorporated, Research Division
Lawrence Solow - CJS Securities, Inc.
Tobey Sommer - Truist Securities, Inc., Research Division
David Manthey - Robert W. Baird & Co. Incorporated, Research Division
Nandita Nayar - BofA Securities, Research Division

Presentation

Operator

Greetings, and welcome to the Clean Harbors Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Tim Rodenberger, General Counsel for Clean Harbors. Mr. Rodenberger, you may begin.

Tim Rodenberger

Thank you, Christine, and good morning, everyone. With me on today's call are our Co-Chief Executive Officers, Eric Gerstenberg and Mike Battles; our EVP and Chief Financial Officer, Eric Dugas; and our SVP of Investor Relations, Jim Buckley. Slides for today's call are posted on our Investor Relations website.

Matters we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Participants are cautioned not to place undue reliance on these statements, which reflect management's opinions only as of today, July 29, 2026. Information on potential factors and risks that could affect our results is included in our SEC filings. The company undertakes no obligation to revise or publicly release the results of any revision of

Key Takeaways Sezzle's quarterly purchase frequency rose to 7.1 from 6.1, signaling more habitual platform use.SEZL subscribers increased by 44,000 sequentially to 714,000, supporting higher-value engagement.Sezzle targets credit-loss provisions of 2.5%-3% of GMV as Pay-in-5 raises working-capital needs. Sezzle Inc. (SEZL - Free Report) is moving beyond its checkout roots. The company is building a wider consumer finance platform designed to keep users engaged more often and across more spending occasions.

That shift matters because a broader product set could raise purchase frequency, deepen wallet share and reduce reliance on new merchant integrations. The opportunity is promising, but execution and credit control remain central to the story.

Sezzle Expands Beyond CheckoutSezzle’s core model lets consumers make a down payment and repay purchases through scheduled installments, while the company earns revenues from merchant and partner income, consumer fees and subscriptions. That checkout foundation remains important to its merchant network and user acquisition funnel.

The growth agenda now extends into open-loop and virtual cards, enhanced longer-term lending, Sezzle Mobile and rewards-led engagement. Affirm Holdings (AFRM - Free Report) offers a useful industry comparison because it also competes in point-of-sale installment financing, while PayPal Holdings (PYPL - Free Report) shows how large payment platforms can embed buy-now-pay-later options into broader checkout ecosystems.

SEZL Builds a Higher-Frequency ModelSezzle’s first-quarter 2026 metrics show a platform becoming more habitual. Average quarterly purchase frequency rose to 7.1 times from 6.1 times a year earlier, a full additional purchase across the consumer base.

Subscribers increased by 44,000 sequentially to 714,000. That supports a strategy centered on higher-lifetime-value customers and more activity from existing users, rather than relying only on acquiring new shoppers or signing new merchants.

Sezzle Adds Products Not in GuidanceManagement’s product roadmap includes cash-flow management tools, checking and deposit accounts, broader card acceptance and other services that can move Sezzle closer to an everyday money platform. These offerings could create more reasons for users to return between checkout moments.

Full-year 2026 guidance does not include projections for products still in development. That leaves room for incremental upside if launches gain traction, although product adoption and timing still need to prove out through the rest of 2026 and into 2027.

Image Source: Zacks Investment Research

SEZL Balances Growth With Credit DisciplinePay-in-5 is an important part of the engagement push because it adds another short-term installment option and can fit consumer demand for more flexibility. Management has described it as a meaningful driver, but it also increased working-capital needs after its January 2026 launch.

The product carries somewhat higher loss rates by design, so underwriting discipline remains critical. Sezzle continues to target provision for credit losses of 2.5% to 3% of gross merchandise volume, supported by model improvements, new data sources and collection efforts.

Sezzle’s Signals Support the ThesisThe bottom line is that Sezzle’s platform expansion gives the growth story more depth than a narrow checkout-only model. More products, more frequent usage and subscriber-led engagement support a favorable growth-oriented view, provided credit performance and funding needs stay controlled.

SEZL currently carries a Zacks Rank #2 (Buy). It also has a Growth Score of A, Momentum Score of A and VGM Score of A, which align with favorable growth and trading-style characteristics for investors focused on top-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Value Score of D adds an important balance. Investors are paying a premium for Sezzle’s growth trajectory, so the case depends less on a low entry valuation and more on sustained execution across the broader product roadmap.

Key Takeaways D-Wave appears better positioned ahead of Q2 earnings, supported by stronger commercial traction.Record bookings, rising backlog and enterprise adoption are improving D-Wave's revenue visibility.RGTI's outlook hinges on turning technology milestones and QPU demand into steadier commercial revenue. Rigetti Computing (RGTI - Free Report) and D-Wave Quantum (QBTS - Free Report) are gearing up to report second-quarter 2026 results in early August, with investors looking for evidence that the quantum computing rally is being supported by continued commercial execution. While both companies entered the second quarter on the back of better-than-expected first-quarter results, their growth strategies remained distinctly different.

D-Wave continued to build momentum through record bookings, an expanding backlog and rising enterprise adoption of its annealing quantum platform, while Rigetti focused on scaling its superconducting gate-model roadmap with broader customer access to its 108-qubit Cepheus system and growing demand for its on-premises quantum processing units (QPUs).

Investor enthusiasm remained strong during the April-to-June quarter, though D-Wave retained the upper hand in the market. QBTS shares surged 75.1% over the period, outpacing the 43.1% gain in Rigetti stock, reflecting confidence in D-Wave's accelerating commercial traction and system sales outlook.

As both companies prepare to report June-quarter results, investors will closely watch whether Rigetti's technology milestones and D-Wave's growing commercial pipeline translated into stronger financial performance and reinforced their long-term positions in the rapidly evolving quantum computing market.

April to June Price Comparison

Image Source: Zacks Investment Research

Can D-Wave Sustain Its Commercial Momentum in Q2?D-Wave's second-quarter results are likely to reflect continued commercial traction following a record first quarter. Management expects revenues to improve sequentially, driven by the ongoing recognition of revenues from the Florida Atlantic University Advantage2 system sale, steady growth in Quantum Computing as a Service subscriptions and higher professional services revenues. The company also exited the March quarter with record bookings of $33.4 million and remaining performance obligations of $42.4 million, providing healthy revenue visibility heading into the June quarter.

Beyond near-term revenues, investors will also be watching D-Wave's execution on its expanding system sales pipeline. Management now expects to sell two to three quantum systems annually and reiterated that at least two systems are scheduled for delivery in 2026, with additional deals under active negotiation. Progress on bookings conversion, enterprise customer adoption and commercialization of the Advantage2 platform could provide further support to second-quarter performance.

D-Wave also ended the first quarter with approximately $588 million in cash and marketable securities, leaving it well capitalized to fund product development, expand its commercial footprint and advance both its annealing and gate-model quantum computing roadmaps. Any updates on customer wins, system deployments and revenue timing are likely to remain key catalysts for the stock.

What to Expect From Rigetti's Q2 ResultsRigetti's second-quarter results are expected to reflect continued progress in commercializing its superconducting quantum computing platform. The company indicated that the remaining revenues from previously announced Novera QPU purchase orders would be recognized primarily in the second quarter, following strong first-quarter growth driven by system deliveries. Continued execution on government and research contracts, alongside expanding cloud access to its 108-qubit Cepheus-1 system, is also expected to support the June-quarter top line.

Beyond revenues, investors will closely monitor customer adoption and execution against Rigetti's technology roadmap. Management highlighted growing demand for its on-premises Novera QPUs from national laboratories, universities and research institutions, while commercial interest continued to build across industries such as materials, logistics and financial services. Any updates on additional system orders, progress on the C-DAC 108-qubit deployment in India and improvements in the performance of the Cepheus-1 platform could serve as key catalysts during the quarter.

Rigetti ended the first quarter with approximately $569 million in cash, cash equivalents and available-for-sale investments and no debt, providing ample financial flexibility to fund its chiplet-based roadmap, expand fabrication capacity and advance higher-qubit quantum systems. Investors will also look for updates on fidelity improvements, customer deployments and progress toward the company's long-term goal of achieving quantum advantage.

Q2 Earnings Expectation: RGTI Vs. QBTSThe Zacks Consensus Estimate for RGTI’s second-quarter earnings per share (EPS) is pegged at a loss of 3 cents. This suggests an improvement from a 5-cent loss in the year-ago quarter. QBTS is expected to report a loss of 8 cents per share. It had incurred a 55-cent loss a year earlier.

Notably, the consensus estimate for EPS for both companies has remained unchanged over the past 60 days, indicating stable analyst expectations.

RGTI Consensus  Estimate

Image Source: Zacks Investment Research

QBTS Consensus Estimate

Image Source: Zacks Investment Research

Short-Term Price Targets Favor QBTS Over RGTIBased on short-term price targets offered by 10 analysts, the average price target of RGTI of $31 represents an increase of 98.2% from the last closing price of $15.64.

Image Source: Zacks Investment Research

Based on short-term price targets offered by 13 analysts, the average price target of QBTS of $38.31 represents an increase of 136.3% from the last closing price of $16.21.

Image Source: Zacks Investment Research

Our Take: QBTS or RGTI?Both companies are making meaningful progress in quantum computing, but they are at different stages of commercialization. Rigetti's investment thesis continues to hinge on executing its ambitious gate-model roadmap and translating technological advances into a broader base of recurring commercial revenues. The company has demonstrated encouraging progress with its chiplet architecture and cloud expansion, but its business remains heavily influenced by the timing of hardware deployments and research contracts. Until revenue becomes more predictable and commercial adoption broadens beyond early-stage customers, investors may remain cautious despite Rigetti's technological strengths. This outlook aligns with its Zacks Rank #3 (Hold).

D-Wave, meanwhile, appears to have established stronger commercial traction. Rather than relying primarily on future technology milestones, the company is increasingly demonstrating that customers are willing to pay for its existing quantum solutions through cloud subscriptions, enterprise licensing and system sales. Its expanding commercial pipeline and improving revenue visibility suggest execution is becoming a larger driver of the investment story than promise alone. As the quantum industry gradually shifts its focus from technological potential to commercial adoption, D-Wave appears better positioned to capitalize on that transition. Backed by a Zacks Rank #2 (Buy), QBTS looks like the more compelling quantum stock ahead of second-quarter earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Apple's fiscal Q3 growth is expected to be led by strong iPhone 17 demand and higher Pro sales.Mac sales are forecast to rise 7.8%, aided by M5 models, though chip constraints may limit supply.iPad and wearables may post modest growth amid a tough comparison and steady device demand. Apple’s (AAPL - Free Report) third-quarter fiscal 2026 results, to be reported on July 30, are expected to have benefited from sustained demand for the iPhone 17 family and the more affordable iPhone 17e. The lineup delivered 22% year-over-year growth in the second quarter of fiscal 2026, supported by higher sales of Pro models, record upgrader activity and market-share gains. Demand remained strong across the United States, Greater China, Europe, India, Japan and Southeast Asia.

Apple Intelligence integration, advanced cameras, improved battery life and A19-series processors are likely to have encouraged upgrades. New accessibility capabilities, including AI-powered VoiceOver, Magnifier and natural-language Voice Control, further enhance the utility of the iPhone. However, growth could moderate sequentially following the exceptionally strong fiscal second quarter performance.

The iPhone accounted for 51.3% of net sales in the second quarter of fiscal 2026. The Zacks Consensus Estimate for fiscal third-quarter iPhone sales is pegged at $53.967 billion, suggesting roughly 21.1% year-over-year growth.

Click here to learn how Apple’s overall fiscal third-quarter earnings results are likely to be.

AAPL’s MacBook Demand Expected to Remain RobustMac revenues are expected to have benefited from strong demand for the MacBook Neo, M5-powered MacBook Air and MacBook Pro models featuring M5 Pro and M5 Max processors. Mac sales increased 6% year over year in the second quarter of fiscal 2026, driven primarily by higher laptop sales, while the installed base and the number of customers new to Mac reached records.

Apple Silicon’s ability to run advanced AI models locally is strengthening Mac adoption among developers, enterprises and educational institutions. MacBook Neo’s lower price is also expanding Apple’s addressable market. Nevertheless, Mac performance is likely to have been constrained by limited availability of advanced semiconductor nodes. Apple indicated that several Mac models would remain supply constrained during the third quarter of fiscal 2026 because demand exceeded expectations.

The PC segment climbed up 4.9% in the second quarter of calendar 2026, according to IDC. Apple had a market share of 9.9%, up 140 basis points (bps) on a year-over-year basis. Shipments grew 10.1% year over year to 6.7 million. In terms of shipments, Apple outperformed Dell Technologies (DELL - Free Report) , Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) . Shipments of Dell, Lenovo and HP declined 2.1%, 5%, and 9%, respectively, per IDC data. Dell, Lenovo and HP have market shares of 13.6%, 24.4% and 19.1%, respectively.

The Zacks Consensus Estimate for fiscal third-quarter Mac sales is pegged at $8.674 billion, suggesting 7.8% year-over-year growth.

AAPL iPad Revenues Likely to Face a Difficult ComparisoniPad revenues are expected to have benefited from demand for the M4-powered iPad Air, the A16-powered entry-level iPad and the M5-powered iPad Pro. In the fiscal second quarter, iPad sales increased 8% year over year, while more than half of buyers were new to the product. Strong adoption in emerging markets, including India, Mexico and Thailand, is likely to have supported the segment.

Enhanced Apple Intelligence and accessibility features, including natural-language Voice Control, Accessibility Reader and privately generated video subtitles, should improve iPad’s appeal for education, productivity and creative workloads. However, Apple warned that the segment faced a difficult year-over-year comparison because the A16-powered iPad was introduced in the prior-year quarter. Consequently, iPad revenues may have declined or posted only modest growth.

The Zacks Consensus Estimate for fiscal third-quarter iPad sales is pegged at $8.674 billion, suggesting 5.1% year-over-year growth.

Apple's Wearables Expected to Register Modest GrowthWearables, Home and Accessories revenues are expected to have benefited from demand for Apple Watch Ultra 3, Apple Watch Series 11, Apple Watch SE, AirPods Pro 3 and AirPods Max 2. The category grew 5% year over year in the second quarter of fiscal 2026, driven by higher wearables and accessories sales. The wearables installed base reached a record, with more than half of Apple Watch buyers being new to the product.

Apple Watch’s health and fitness capabilities and AirPods’ intelligent features, including Live Translation, are likely to have supported demand. The wider integration of Apple Intelligence and accessibility functions across Apple devices may also strengthen ecosystem engagement.

The Zacks Consensus Estimate for fiscal third-quarter Wearables, Home and Accessories sales is pegged at $7.805 billion, suggesting 5.4% year-over-year growth.

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

Think you're having a rough summer? At least you haven't lost $300 billion like Tesla (TSLA -0.89%) CEO Elon Musk.

Musk made history this year when his other mammoth company, Space Exploration Technologies, went public, pushing Musk's personal wealth to more than $1 trillion. He became the first -- and only -- trillionaire in recorded history.

But it didn't last. SpaceX stock has fallen below its initial public offering price, and Tesla is hemorrhaging value following the company's second-quarter earnings report. Even though Tesla reported strong revenue -- and posted more than $100 billion in trailing-12-month sales for the first time -- the stock fell by 18% in a single week after July 22 earnings, its worst one-week performance since 2022.

How extensive is Musk's loss? According to the Bloomberg Billionaires Index, his net worth is now $709 billion. Musk lost more money in the last six weeks than anyone else on the list even possesses. (No. 2 on the list is Larry Page, the co-founder of Alphabet, with a net worth of $281 billion.) Musk acknowledged this loss in a social media post on X, simply writing, "(Former) Trillionaire."

Let's see why the market has turned on Tesla stock despite its strong revenue growth.

Tesla CEO Elon Musk. Image source: The White House.

The red flags surrounding Tesla now Tesla's primary business is electric vehicles -- the company delivered 480,126 of them in the second quarter, up 25% from a year ago, and that resulted in most of Tesla's $28.23 billion revenue. Tesla said EV sales brought in $20.51 billion, up 23%.

The big problem, however, was Tesla's dwindling margins. Operating margins fell from 4.1% a year ago to just 1.4% in the second quarter of this year. Operating expenses jumped 47%, to $4.35 billion. Tesla reported negative free cash flow of $1.1 billion in the quarter, and its cash and investments dropped by $1.2 billion.

Capital expenditures more than doubled sequentially, according to CFO Vaibhav Taneja, and the company expects them to continue increasing in the second half of the year. Tesla issued guidance for $25 billion in capex spending for the year and announced plans to borrow up to $30 billion.

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The market reacts Undoubtedly, Tesla has huge plans that require enormous investment. Artificial intelligence is essential for Tesla's biggest bets, including self-driving technology and the Optimus robot line. The company is running early versions of its v15 autonomous driving software in robotaxis, but it's unclear when the technology will be ready for nationwide rollout -- or if regulators will sign off on it.

Meanwhile, Tesla is making room for Optimus robot production by discontinuing manufacturing lines at its Fremont, California, factory for Model S and X vehicles. Robots built on that line will be used for further training and development of the hardware and AI software, the company has said, but the technology appears to be a long way from commercial sales.

Tesla has always been priced for perfection, with a high forward price-to-earnings ratio that, even after a drop, still registers at an eye-watering 170. Investors have long been willing to buy and hold Tesla stock based on Musk's vision. But with dwindling margins, negative cash flow, doggedly high spending, and plans to borrow $30 billion, the shine appears to be coming off Tesla stock this summer.

Amazon.com Inc (NASDAQ:AMZN) is set to report its second quarter 2026 results on July 30, with UBS lowering its price target to $305 from $333 while maintaining a ‘Buy’ rating as it expects continued strength from Amazon Web Services and improving e-commerce profitability.

The UBS analysts wrote that the price target reduction reflects expectations for higher capital expenditures in 2027 and beyond due to rising component costs and increased demand for infrastructure.

The analysts also adjusted near-term AWS revenue expectations after moving OpenAI’s initial use of Amazon’s Trainium chips from the fourth quarter of 2026 into early 2027, shifting approximately $3 billion in revenue out of this year.

Despite the near-term adjustment, UBS highlighted AWS as a key driver of its bullish outlook, noting that it believes the market is underestimating the cloud unit’s backlog and revenue growth potential in the second half of 2026 and into 2027.

UBS forecasts AWS revenue growth of 36% in 2026, ahead of the Street estimate of 31%, and expects growth of 48% in 2027 compared with consensus expectations of 30%.

The analysts wrote that its largest divergence from consensus remains Amazon’s 2027 operating income outlook, which UBS estimates will be approximately 49% above current Street expectations.

UBS’s investment thesis is centered on continued AWS growth acceleration as Amazon expands capacity, alongside potential market share gains in e-commerce driven by improving service levels, including broader same-day delivery and increased investment in groceries.

The firm also expects improving unit economics to support faster margin expansion in Amazon’s retail business, as growth in units sold continues to outpace cost growth. In addition, UBS pointed to Amazon’s Prime Video advertising opportunity, highlighting the potential for higher-margin revenue growth as the service scales globally through partnerships and live sports offerings.

UBS maintained its ‘Buy’ rating, writing that Amazon’s valuation remains attractive, with the stock trading at around 14 times its updated 2027 earnings estimate. The firm argued that a premium asset such as Amazon should not trade at a discount to the broader market multiple.

The revised $305 price target, which implies upside from current levels of about $228, is based on a 30 times price-to-free cash flow multiple applied to UBS’s estimate of $109.9 billion in free cash flow from the third quarter of 2027 through the second quarter of 2028.

Semiconductors are caught in a selloff UBS thinks is overblown.

The bank argues that fears over "circular financing" in AI infrastructure deals misread who's actually cashing in on the buildout, and it's the chip supply chain, not the hyperscalers, footing the bill.

The commentary follows a wave of investor inquiries about data center deals from Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD). Recent media reports indicated Nvidia is backing up to $50 billion in lease agreements for a Hut 8 site in Texas and is working on deals worth $750 billion in total, including a $250 billion arrangement with OpenAI, according to Bloomberg. AMD, together with an undisclosed neocloud partner, signed a deal with Core Scientific for up to 2.5 gigawatts of capacity, starting with 500 megawatts in 2027.

UBS identified four drivers behind the recent correction: concerns about open source models weighing on frontier model providers' growth, questions about the memory cycle's sustainability, perceived "circular" financing arrangements, and crowded investor positioning in semis.

The bank pushed back on the first three. It sees the rise of open source models as a net positive for Nvidia, pointing to Artificial Analysis data showing new open models sit between prior and current-generation frontier offerings. It also maintained its view that NAND pricing will roll over in late calendar 2027 and DRAM in mid-2028, with nothing so far to change that call.

On financing, UBS disputed Street estimates that free cash flow for Amazon, Google, Meta and Microsoft will fall below $100 billion in 2027. The bank's own hyperscaler capex projection of roughly $1.4 trillion for that year implies the four companies' combined free cash flow would instead be slightly negative, around negative $60 billion including Oracle. That gap is largely due to rising memory prices, which UBS said are set to require about $550 billion in incremental capex between 2026 and 2027, nearly the entire projected year-over-year increase for that period.

Against that backdrop, UBS estimates Nvidia will generate approximately $900 billion in free cash flow through the end of 2028, with Micron Technology Inc (NASDAQ:MU) generating about $450 billion and AMD about $90 billion, all within its US coverage universe. In UBS's view, the supply chain is generating all of the cash, which the bank says makes sense.

That dynamic, UBS argued, explains why cash-generating suppliers are helping underwrite the buildout, and suggested Nvidia may be shifting toward a more vertically integrated model.

The bank also said hyperscalers' capex increases largely reflect higher memory prices rather than added compute, meaning supply and demand for compute itself has tightened further.

As memory prices normalize, UBS expects hyperscaler spending to ease and free cash flow to improve, a trend it views as ultimately positive for the AI trade despite any near-term drag on semis.

Disney is leaning into AI under CEO Josh D'Amaro, but it's dropping Microsoft's GitHub Copilot. Blanca Cruz / AFP via Getty Images; Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images Disney has decided it no longer needs a Copilot on its AI coding journey.

The Mouse House is ditching Microsoft's GitHub Copilot and several other AI coding tools in August in the US, tech leaders told select staffers on Tuesday afternoon, according to a screenshot of an internal message viewed by Business Insider. These changes don't apply internationally, a Disney tech leader told employees.

A breakup with Disney is the latest headache for Microsoft's Copilot, which "lags behind" rivals like ChatGPT and Claude in adoption, as Business Insider's Ashley Stewart has reported. GitHub Copilot is the coding assistant in Microsoft's AI product suite.

Microsoft's loss is Sam Altman's win. Disney is preparing to adopt OpenAI's Codex coding tool, according to the screenshot. The message didn't give a timeline for the tool's introduction.

Disney will also keep staffers' access to Anthropic's Claude Enterprise and Cursor, while dropping two AI tools from Amazon: the agentic code editor Kiro and the AI assistant Q. (Claude will also no longer be accessible through the Amazon Web Services Bedrock platform.)

Copilot's challengesEight Disney tech employees told Business Insider that they rarely or never used GitHub Copilot.

One product manager said GitHub Copilot produced code that was "needlessly complex" and required clean-up.

A longtime software engineer said their access to GitHub Copilot had "lapsed for lack of use."

"Once I got Cursor and Kiro, there was no need to use it," this staffer said.

Copilot frustrated some users last month by updating its pricing to charge customers based on their AI token usage, which is industry-standard. The company said GitHub Copilot's request-based model was "no longer sustainable" as it unveiled the shift.

However, a Microsoft executive said in June that this move helped fuel the "best month ever" for the GitHub developer platform, Business Insider previously reported.

Microsoft has set out to revamp GitHub while shaking up its Copilot teams to help its many Copilot tools compete with rivals from OpenAI and Anthropic.

Disney staffers are enchanted by Claude and CursorClaude and Cursor have become fan favorites among Disney tech employees, as some superusers use agents to invoke those AI tools tens of thousands of times per day, Business Insider previously reported.

One high-level software engineer said their AI tool usage was "probably around 80% Claude at the terminal when coding."

Disney's streaming leaders created an AI adoption dashboard to track usage and have encouraged tech employees to use it to work faster, Business Insider previously reported.

"The No. 1 thing is to increase velocity," or the speed of output, a high-level AI staffer said.

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Qualcomm heads into earnings with memory supply constraints and weaker Chinese handset demand expected to make Q3 the trough for QCT revenue. Investors will focus on whether management can confidently call an inflection from here.

Automotive revenue reached a record last quarter and grew 38%, making the durability of that momentum a major swing factor. Qualcomm’s diversification story also depends on tangible progress from hyperscaler custom silicon shipments and its integration of Alphawave.

The stock trades at a forward P/E near 15, reflecting persistent concerns about handset cyclicality and customer concentration. Confirmation of a Q3 trough, paired with concrete data center milestones, could push investors toward the diversification thesis.

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) reports fiscal Q3 2026 results after the close tonight at 4:00 PM ET. CEO Cristiano Amon guided for this quarter to be the bottom for Chinese handset revenue, so this report anchors the recovery timeline.

The Backdrop: Trough Quarter, Recovery Thesis Last quarter, revenue landed at $10.60B, down 3.46% YoY, with non-GAAP EPS of $2.65 beating by 3.67%. Handsets fell 13% to $6.02B due to memory pressure and weakness in Chinese OEMs. Automotive offset with a record $1.33B, up 38%.

Shares sit at $159.64, down 14% over the past month and 6.12% over the past week. Amon called the memory environment “challenging” while flagging hyperscaler custom silicon shipments later this calendar year. Capital return remained aggressive with $2.8B in buybacks, $945M in dividends, plus a new $20B repurchase authorization.

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Consensus Estimates Metric Q3 FY26 Guide YoY at Midpoint Q3 FY25 Actual Revenue $9.2B-$10.0B ~-7% $10.365B QCT Revenue $7.9B-$8.5B -9% to -3% $8.993B EPS (Non-GAAP) $2.10-$2.30 ~-21% $2.77 The guide reflects a deliberate step down from the FY25 pace. Polymarket implies a 70.7% probability of an EPS beat, with the crowd assigning 62.5% odds to QCT revenue clearing $8.00B and only 37.5% to $9.00B.

What We’re Watching: Data Center Debut Meets China Bottom Tonight, I’ll be watching how CEO Amon frames the hyperscaler’s custom-silicon ramp. Management said initial shipments are on track for later in this calendar year, and any pull-in or slip could materially affect the FY27 setup. The Alphawave Semi acquisition now sits inside the Data Center segment, so analysts will be looking for an early read on contribution and margin profile.

Investors will also focus on the Chinese handset trajectory. Company guidance flagged Q3 as the bottom with sequential growth returning in Q4. I’ll also track automotive to see whether the +38% pace holds or moderates toward the 15-20% band seen in earlier quarters.

Margins deserve close attention. Operating income fell 26% YoY last quarter, even as the top line held. Memory pricing pass-through and mix shift toward automotive and IoT will determine whether operating leverage returns in FY27. Finally, investors will be looking for any insights on AI agents and the physical AI platform teased at the June 24, 2026 Investor Day.

Earnings History Quarter EPS Surprise Day-of Move 1-Week Move 30-Day Move Q2 FY26 +3.67% +15.12% +12.79% +34.11% Q1 FY26 +2.87% -8.46% +1.59% -0.81% Q4 FY25 +4.53% -3.63% +0.75% +1.62% Q3 FY25 +2.05% -7.73% -0.59% +8.19% On average, shares moved +4.37% one week after earnings among recent beats.

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Contact [email protected] for any questions or corrections.

• Teva Pharmaceutical Indus shares are powering higher. What’s behind TEVA gains?

NYSE Listing TransitionTeva announces the replacement of its American Depositary Share (ADS) program with the direct listing of its ordinary shares on the New York Stock Exchange (NYSE).

ADSs will be exchanged on a one-for-one basis for ordinary shares, which commence trading on the NYSE on Monday, Sept. 14.

The transition aims to broaden Teva’s shareholder base, support its potential inclusion in leading indices, and optimize cost-of-capital.

Key Brands Offset Generic Drug WeaknessThe company reported adjusted earnings of two cents, missing the consensus of 25 cents.

Sales decreased 1% (-3% in local currency) to $4.142 billion, beating the Wall Street consensus of $4.047 billion. The decrease was due to lower revenues from generic products, primarily lenalidomide capsules.

The generic drug makers‘ key brands Austedo, Ajovy and Uzedy collectively grew 43% year over year in local currency to over $1 billion in revenues. Each brand grew at least 40% year over year in the quarter.

Generics global revenues were lower in the quarter mainly due to lower revenues from lenalidomide capsules (a generic version of Revlimid) in the U.S.; the biosimilars portfolio performed strongly and is on track to deliver $800 million in revenues by 2027.

The company, in its earnings conference call, said it is on track to meet its 2027 financial growth targets, with stable revenues despite challenges in the generics sector, and expects continued margin expansion driven by its innovative portfolio.

2026 Outlook and PipelineTeva expects fiscal 2026 adjusted earnings of $1.91-$2.11, including (66 cents) per share of 2026 Emalex expenses, unchanged from prior guidance.

The company marginally raised its 2026 sales guidance from $16.40 billion-$16.80 billion to $16.50 billion-$16.85 billion compared to the consensus of $16.618 billion.

Teva raised its 2026 revenue outlook for its key innovative brands, and now expects combined 2026 revenue of ~$3.7 billion, reflecting around 17% year-over-year growth at the midpoint.

The company has a robust pipeline with potential launches over the next five years, including olanzapine and ecopipam, and is increasing its biosimilars portfolio with 15 products currently in the market.

TEVA Stock Price Activity: Teva Pharmaceutical shares were up 9.25% at $34.60 at the time of publication on Wednesday, according to Benzinga Pro data.

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The logo of oil and gas company Shell at a gas station in Wijchen, Netherlands, April 13, 2026. REUTERS/Piroschka van de Wouw Purchase Licensing Rights, opens new tab

SummaryCompaniesShell and P66 own around 61% of Explorer, in early stages of sale effort, sources sayEnergy Transfer and MPLX could also sell if buyers willing to pay high price for whole pipeline, sources sayExplorer among ​most important US refined products pipelinesNEW YORK, July 29 (Reuters) - Shell (SHEL.L), opens new tab and Phillips 66 (PSX.N), opens new tab are ‌working on a potential sale of their stakes in the company which owns the Explorer refined products pipeline, in a deal that could value the major piece of U.S. energy infrastructure at around $3.5 billion, people familiar with the matter said.

The move reflects ​how heightened demand for energy infrastructure assets, especially from financial buyers, has boosted valuations and encouraged existing ​owners to sell and reinvest proceeds in core or higher-growth parts of their businesses.

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Shell ⁠and Phillips 66 currently hold around 61% ownership of the legal entity which holds the pipeline, which ​transports gasoline, jet fuel and other fuel products from Texas, through the Midwest, to end points including the outskirts ​of Chicago.

Investment bankers at Greenhill, a Mizuho (8411.T), opens new tab affiliate, and RBC Capital Markets (RY.TO), opens new tab, have been retained to run an auction process for the stakes, with deliberations currently at an early stage.

Energy Transfer (ET.N), opens new tab and MPLX (MPLX.N), opens new tab own the rest of Explorer. While prospective buyers are ​initially being sounded out on the Shell and Phillips 66 pieces, the other stakeholders could ultimately contribute ​their holdings if strong interest is shown in acquiring the whole pipeline, the sources said.

The sources cautioned there was no guarantee ‌of ⁠any deal involving the Explorer stakes, and spoke on condition of anonymity to discuss private negotiations.

Shell, Phillips 66, and MPLX declined comment. Explorer, Energy Transfer, Mizuho and RBC did not respond to comment requests.

CRITICAL INFRASTRUCTUREIn service since the early 1970s, Explorer constitutes a pipeline system stretching more than 1,800 miles. The southern portion of the ​system has a capacity of ​660,000 barrels per day, ⁠with the northern part capable of handling 450,000 barrels per day, according to Explorer's website.

Alongside the Colonial pipeline, which ships fuel from Texas to the northeast, Explorer ​is considered among the most important refined products pipelines in the United States.

Colonial ​was sold last year ⁠to Brookfield Infrastructure Partners (BIP.N), opens new tab for around $9 billion. In that sale effort, an initial group of owners put their stakes up for sale before the rest contributed their holdings for an outright deal with the investment firm.

Pipelines and other ⁠energy infrastructure ​have drawn significant buyer interest in recent years. Industry players are ​seeking growth, both in assets but also product offerings, and financial buyers love the steady cash flow which midstream assets generate.

Reporting by ​David French in New York; Additional Reporting by Stephanie Kelly in London; Editing by Echo Wang and Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles., opens new tab

© maybefalse / Getty Images

At $119.96, Oracle (NYSE:ORCL | ORCL Price Prediction) looks overvalued to our research, even with a consensus target price implying roughly 100% upside. The gap between Wall Street’s $248.15 average target and the current share price tells you the sell-side has not yet marked to market what the balance sheet is doing.

Oracle is in the middle of the most aggressive capital cycle in its history, converting a legacy database and applications franchise into an AI cloud infrastructure provider. Cloud already accounts for 52% of quarterly revenue, with Cloud Infrastructure growing 93% year over year in Q4 FY2026. The market’s problem is what that growth costs.

Shares are down 37.85% year to date and 51.02% over the past year while the S&P 500 has climbed 8.64% YTD. That divergence is the story.

The Bull Case: A Contracted Backlog Nobody Else Owns Remaining performance obligations hit $638 billion in Q4, up 363% year over year. That is multi-year revenue already contracted, much of it tied to hyperscale AI customers. Oracle’s Multicloud AI Database grew 404% in Q4, with 71 datacenters embedded inside AWS, Google, and Azure.

Management has confirmed $90 billion in FY2027 revenue and raised non-GAAP EPS guidance to $8.05. On a forward P/E of 14x with a PEG of 0.65, bulls argue the stock is already discounting a disaster that has not arrived.

The Bear Case: A Cash Flow Machine Running Backward Free cash flow was negative $23.69 billion in FY2026 on $55.66 billion of capex, a 173.9% ratio to operating cash flow. Oracle plans to raise $40 billion more in FY2027 through debt and a $20 billion ATM equity program. Total liabilities sit at $218.70 billion.

Meanwhile, high-margin software license revenue fell 6% in Q4 and 21% in Q2, with low-margin IaaS taking its place. That is a structural gross margin problem hiding inside a headline growth number.

The Hold Case: Wait for the FCF Inflection The bull-bear tension resolves at one number: free cash flow. Until Oracle proves the RPO can convert to cash faster than capex consumes it, the stock has no valuation floor other than sentiment. A leadership transition to co-CEOs Clay Magouyrk and Mike Sicilia adds execution risk.

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The Numbers Behind the Verdict Oracle trades at $119.96 against an analyst consensus target of $248.15, an implied upside of roughly 107%. 37 of 43 analysts rate it Buy or Strong Buy, with 5 Hold and 1 Sell. Targets are one data point among many.

Trailing P/E sits at 21x with forward P/E at 14x. Shares trade well below the 200-day moving average of $186.58, with a beta of 1.712. The 37.85% YTD decline compares to the S&P 500’s 8.64% gain, a roughly 46-point spread.

Why the Consensus Target Is the Wrong Anchor At $119.96, Oracle looks overvalued in our research view. Here is why. The path to further downside runs through the next two quarterly reports. If capex stays north of $50 billion annually while free cash flow remains negative, Oracle will fund the gap through the announced $40 billion in debt and equity raises, pressuring both interest expense (already up 32% YoY to $1.18 billion in Q3) and share count.

Fair value sits closer to $105 to $115. That range applies a more conservative multiple to FY2027 guidance and prices in the reality that low-margin IaaS is cannibalizing the software franchise that historically justified premium multiples.

The thesis inverts if Oracle prints a positive free cash flow quarter, or if capex intensity meaningfully slows without RPO growth stalling. Watch operating cash flow versus capex, non-current debt, and software license trends each quarter.

A 100% upside target on a stock burning $23.7 billion in cash is a target that has not yet met the balance sheet.

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AbbVie (ABBV +1.26%), one of the world's largest pharmaceutical companies, is usually considered a blue chip dividend stock rather than a higher-growth one. Yet over the past five years, its stock has rallied 125% and delivered a total return of 170% with reinvested dividends.

AbbVie has raised its dividend for 53 consecutive years (including its history as part of Abbott Laboratories (ABT +1.21%) up to 2013), putting it in the elite club of Dividend Kings that have boosted their payouts each year for at least half a century. It also still looks like a bargain at 18 times forward earnings. So is AbbVie one of the best healthcare stocks to buy right now?

Image source: Getty Images.

What happened to AbbVie over the past few years? Back in 2018, AbbVie's blockbuster autoimmune drug, Humira, accounted for 61% of its top line. To diversify its top line away from Humira, which was set to lose its U.S. patent exclusivity in 2023, it launched two immunology drugs, Skyrizi and Rinvoq, in 2019. It also acquired Allergan -- the developer of Botox -- in a $63 billion cash-and-stock deal in 2020.

Many investors still dreaded Humira's loss of patent exclusivity. But from 2021 to 2025, AbbVie's revenue still rose from $56.1 billion to $61.2 billion as stronger sales of Skyrizi and Rinvoq, the integration of Allergan's business, and new acquisitions offset that pressure.

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Its adjusted EPS still dipped from $11.85 to $10.00 as biosimilars squeezed Humira's margins, it recognized some big upfront charges from its acquisitions of ImmunoGen and Cerevel Therapeutics, and it ramped up its R&D investments to develop new drugs.

However, AbbVie proved the bears wrong by growing its top line and staying firmly profitable even after Humira faced more biosimilar competitors. Its annual free cash flow (FCF) dropped from $22.0 billion in 2021 to $17.8 billion in 2025, but it still easily covered its annual dividends -- which rose from $9.3 billion in 2021 to $11.7 billion in 2025.

What will happen to AbbVie over the next few years? From 2025 to 2028, analysts expect AbbVie's revenue and adjusted EPS to grow at CAGRs of 9% and 21%, respectively. That growth should be driven by the stabilization of Humira's year-over-year growth, soaring sales of Skyrizi and Rinvoq, and the growing importance of ImmunoGen's antibody-drug conjugates (ADCs) and Cerevel's neuroscience assets.

Skyrizi and Rinvoq are already approved for inflammatory bowel disease, plaque psoriasis, and other dermatological conditions, and will likely be approved for additional uses over the next few years. AbbVie expects those two drugs to generate over $31 billion in combined sales by 2027 (which would be equivalent to 43% of its projected revenue for that year).

Both of those drugs will remain under patent protection well into the 2030s, giving AbbVie plenty of cash and time to develop and acquire more blockbuster drugs. It will also continue to expand its oncology and neuroscience portfolio to reduce its dependence on the immunology market.

Is it the right time to buy AbbVie? AbbVie pays a forward yield of 2.7%, which might not seem impressive compared to the 10-year Treasury's 4.6% yield or Pfizer's (PFE -0.24%) 7% yield. However, AbbVie has also easily outperformed Pfizer -- which lost more than 40% of its value over the past five years as it struggled with plummeting COVID-19 vaccine sales and upcoming patent expirations. AbbVie can also easily afford to continue raising its dividends for the foreseeable future.

AbbVie might not be an exciting investment, but it's a reliable dividend play for long-term investors. That's why I hold AbbVie as one of my top holdings (5.9% of my portfolio), and why I wouldn't hesitate to add more shares even as it hovers near its all-time high.

Key Takeaways SNAP reports Q2 results on Aug. 3, with revenues expected at $1.52B-$1.55B and consensus at $1.53B.SNAP faces Middle East disruption, restructuring charges and no Q2 revenues from the Perplexity partnership.Snap sees ad and Snapchat growth, while AI ad tools and newer formats aim to support monetization. Snap (SNAP - Free Report) is set to report second-quarter 2026 results on Aug. 3.

Snap expects second-quarter 2026 revenues to be in the range of $1.52-$1.55 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.53 billion, indicating a 13.97% increase from the year-ago quarter’s reported figure.

The consensus mark for the bottom line has remained steady at 7 cents per share in the past 30 days.

Snap’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while matching once and missing once, with an average negative surprise of 42.22%.

Let’s see how things have shaped up for the upcoming announcement.

Factors to NoteThe company expects adjusted EBITDA of $175 million to $200 million, an acceleration management attributed largely to North American advertising strength and a roughly 10% year-over-year rise in upfront ad commitments. Yet that same guidance embedded a full quarter of geopolitical disruption in the Middle East, a region that already dented March revenues by $20 million to $25 million, with no expectation of easing during the quarter.

Compounding the top-line pressure, the company confirmed the amicable end of its Perplexity partnership, meaning the second quarter carried zero contribution from that revenue source for the first time.

Management also flagged that total eCPMs remained under strain as ad inventory continued shifting toward newer, still-maturing surfaces like Spotlight and Sponsored Snaps, a mix shift that management itself acknowledged was margin-dilutive during its demand-building phase.

On profitability, the quarter absorbed the bulk of restructuring charges tied to April's workforce actions, guided at $95 million to $130 million, positioned by management as a direct headwind to net income even as the company pursued more than $500 million in annualized cost reduction for the back half of the year. Meanwhile, the commercial unveiling of Specs in June, priced at $2,195, thrust a capital-intensive hardware bet into the spotlight just as investor patience over the unit's cumulative spend appeared to be thinning, raising questions about near-term monetization versus long-term AR ambitions. The launch drew visible investor unease, with shares retreating in the sessions that followed.

Evolving regulatory scrutiny around age assurance, data privacy and advertising practices added another layer of uncertainty, with management cautioning that compliance costs could rise and engagement could be affected, though the timing and magnitude remained unclear heading into the print.

Despite the headwinds, direct-response advertising and Snapchat+ subscription growth remained ongoing contributors to revenue diversification, an area management has repeatedly flagged as a structural offset to platform-specific volatility. Newer ad surfaces such as Sponsored Snaps and Spotlight, while still margin-dilutive, were also expected to add incremental inventory and impressions as they scaled further into demand-building. Additionally, the June rollout of a broader suite of AI-powered capabilities across the ads stack was positioned by the company as a lever to improve ad relevance and advertiser return, a factor management suggested could support monetization even as macro and geopolitical crosscurrents persisted.

Between lingering geopolitical drag, restructuring-related net income pressure, a costly and unproven hardware push, and regulatory overhang, the balance of company-disclosed factors tilted toward caution. Until execution translates guidance into consistent, sustainable earnings, investors may find it prudent to stay on the sidelines ahead of the print.

What Our Model IndicatesPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That's not the case here.

Snap has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to ConsiderArista Networks shares have gained 28.8% in the year-to-date period.

AMETEK (AME - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #2. AMETEK shares have lost 27% in the year-to-date period.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD shares have lost 0.4% in the year-to-date period.

Arista Networks, AMETEK and AMD are each set to report their upcoming quarterly results on Aug. 4.

Plug Power (PLUG -3.57%) is determined to show investors its turnaround is for real. The hydrogen fuel cell company has tested investors' patience over the past several years. Still, under new leadership, Plug is showing that its comeback strategy, internally called "Project Quantum Leap," is underway. Beyond the recent surge in the stock price, three numbers tell an important story and should catch investors' attention.

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Gross margin is still negative, but improving Plug's gross margin, based on generally accepted accounting principles (GAAP), swung 42% in the first quarter year over year. The number is still -13%, but that jump is significant. The driving force behind the improvement is a disciplined approach to cost-cutting, improved fuel-sourcing, and service execution.

This number matters because a company that's growing revenue but increasing its spend isn't helping shareholders over the long term. Marching toward profitability shows that Plug has solved its core issue of selling units at a loss. If the company can achieve and maintain a positive gross margin, it signals to investors that the business is viable.

Double-digit revenue growth Plug Power's revenue beat Wall Street's expectations in the first quarter of the year. The company's legacy material-handling fuel cell business grew by about 20%, while the newer electrolyzer division quadrupled from the previous year to more than $40 million. The material-handling business makes hydrogen fuel cells that replace batteries in forklifts and warehouse equipment, allowing workers to refuel in minutes rather than waiting hours to recharge.

Their electrolyzer business, by contrast, makes the machines that produce hydrogen in the first place, using electricity to split water into hydrogen and oxygen. So one segment consumes hydrogen to power equipment, while the other actually manufactures the hydrogen fuel supply.

Image source: The Motley Fool.

Plug has diversified its revenue streams with electrolyzers, which better position the company for success, particularly as AI data centers look to hydrogen to meet their power needs. If the turnaround is successful, investors should keep an eye on the pace of revenue growth.

A strong liquidity position Plug also ended the first quarter of 2026 with $802 million in cash, with another $275 million expected from planned asset sales. Part of Plug's turnaround story is targeting positive EBITDAS by the fourth quarter.

Plug has been criticized in the past for its cash burn and shareholder dilution. Hence, an increasing cash cushion is an important step toward stabilizing the company's finances and avoiding further dilution of existing shareholders.

While gross margin, revenue, and liquidity strength are three important indicators of success in the company's turnaround strategy, Plug still faces plenty of execution risk. With that said, Project Quantum Leap seems to be taking hold, and CEO Jose Luis Crespo is steering the ship in the right direction.

Investors will need continued patience as a full comeback for both the company and the stock is still a bit off in the distance. Shares of Plug Power have shed more than 90% of their value in the past five years. Plug will report its second-quarter results in the first half of August.

Key Takeaways Southwest Airlines' adjusted EPS jumped 118.6% to 94 cents, beating the consensus estimate by 80.8%.LUV's operating margin rose 3.3 points to 6.7% as unit revenue gained 20.1% on nearly flat capacity.Southwest has $5.3 billion in liquidity, but fuel, Boeing dependence and higher costs cloud the rebound. Southwest Airlines Co. (LUV - Free Report) has a stronger investment case after a sharp earnings rebound and a major stock rally. Better revenue productivity, solid liquidity and shareholder returns support the recovery story.

The case is still balanced. Fuel exposure, Boeing-related execution risk and a valuation premium to the airline sub-industry limit how aggressively investors may want to chase the shares.

LUV’s Earnings Beat Strengthens the Bull CaseSouthwest Airlines reported second-quarter 2026 adjusted earnings of 94 cents per share, up 118.6% year over year. The result was 80.8% above the Zacks Consensus Estimate of 52 cents.

The earnings beat came despite a revenue miss. Operating revenues of $8.43 billion rose 16.4% but missed the consensus mark by 1.7%, showing that cost control and stronger unit economics were central to the quarter’s upside.

Southwest Airlines Restores Margin MomentumAdjusted operating income climbed 138.8% to $585 million. Adjusted operating margin expanded 3.3 percentage points to 6.7%, despite an $889 million year-over-year increase in fuel expense.

The improvement was not driven by broad volume growth. Capacity increased only 0.2%, while adjusted revenue per available seat mile jumped 20.1%, helped by higher fares, disciplined capacity, assigned and extra-legroom seating, bag fees and better revenue management.

LUV’s Valuation Sends Mixed SignalsLUV trades at 0.66X forward 12-month price-to-sales. That is above 0.53X for the Zacks airline sub-industry but below Southwest Airlines' five-year median of 0.88X.

That creates a split valuation picture. The stock may look inexpensive against its own history, but it does not offer a clear discount to direct industry benchmarks. Delta Air Lines (DAL - Free Report) and American Airlines Group (AAL - Free Report) remain relevant peers for investors comparing airline demand, pricing and cost exposure; Delta Air Lines operates a global network serving more than 290 destinations, while American Airlines' investor relations site provides financial information for stockholders and analysts.

Southwest Airlines Has Moderate Target UpsideSouthwest Airlines' $55 price target compares with a reported share price of $46.31. The target still implies upside, but the stock has already gained 12.1% year to date and 50.8% over the trailing 12 months.

After that move, execution matters more. Further appreciation likely depends on whether Southwest Airlines can sustain unit-revenue gains while managing fuel, retrofit costs and fleet-delivery risk.

LUV’s Liquidity Supports the TurnaroundSouthwest Airlines ended the second quarter with $5.3 billion of liquidity, including $3.8 billion in cash and cash equivalents. Gross leverage was 2.1 times, and first-half operating cash flow reached nearly $2 billion.

Capital allocation also supports flexibility. The company paid $181 million in dividends in the first half of 2026 and repurchased $1.25 billion of common stock in the first quarter, while management expects 2026 net capital spending near the low end of, or below, the prior $3.0-$3.5 billion range.

Southwest Airlines’ Rating Case Needs ConfirmationThe bottom line: Southwest Airlines has improved its earnings profile, but investors still need confirmation that the rebound can withstand fuel volatility, higher nonfuel costs and Boeing-related execution challenges.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Its Value Score of A, Growth Score of A, Momentum Score of B and VGM Score of A indicate favorable estimate and style characteristics, but the remaining risk factors argue for selectivity rather than an unconditional chase after the rally.

Key Takeaways Corteva's two businesses offer investors distinct growth, margin and risk drivers.Seed organic sales rose 9%, EBITDA climbed 23% and margin expanded about 310 basis points.Crop Protection volumes rose 6% as cost savings helped lift total operating EBITDA 21%. Corteva, Inc. (CTVA - Free Report) gives investors exposure to two agriculture technology businesses with different earnings drivers. Seed accounts for 56.9% of total company net sales, while Crop Protection contributes 43.1%.

That balance matters as the company moves toward a planned fourth-quarter 2026 separation. The split could lead investors to value each business on its own growth, margin and risk profile.

Corteva’s Two Engines Support a Balanced Growth StorySeed and Crop Protection address separate farmer needs. Seed focuses on germplasm and traits that support yield potential and resistance to weather, disease, pests and herbicides. Crop Protection supplies products that protect crops from weeds, insects, other pests and disease.

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Both segments are tied to the same farm economy. Crop acreage, commodity prices, farmer income, weather, seasonal planting patterns, currency moves and regional input demand all influence results. The mix can provide resilience when one business faces weaker pricing or seasonal pressure.

That context matters for peers, too. Bayer AG (BAYRY - Free Report) competes across seed, crop protection and digital farming, making it a useful comparison for integrated agriculture technology exposure. FMC Corporation (FMC - Free Report) , with its crop protection focus, offers a cleaner read on chemical demand and pricing conditions.

CTVA Seed Pricing Strengthens Revenue QualityCorteva’s Seed business delivered 9% organic sales growth in the first quarter of 2026. Price and product mix improved 3%, with gains across all regions, reflecting demand for differentiated technologies and value-based pricing.

This is not simply an acreage story. Brevant retail brand growth, licensing momentum, productivity savings and lower royalty costs are improving revenue quality. Seed operating EBITDA increased 23%, and segment margin expanded about 310 basis points.

Royalty economics are becoming a clearer earnings lever. Corteva recorded a roughly $30 million reduction in net royalty expense in the quarter and now expects Seed to become royalty positive in 2026, ahead of its earlier royalty-neutral target.

Corteva’s Crop Protection Volumes Offset Price PressureCrop Protection showed a different pattern. First-quarter revenues rose 10%, while organic sales increased 4%. Volumes improved 6%, with gains in every region, supported by demand for new products and spinosyn insecticides.

Pricing remains the offset. Segment price declined 2%, mainly due to competitive market dynamics in Latin America and Asia Pacific. Management expects low-single-digit Crop Protection pricing pressure to continue through 2026.

The volume picture still supports the segment’s role in Corteva’s portfolio. Herbicide sales increased 19%, insecticide revenues rose 12% and fungicide sales improved 10% in the quarter. Sustained margin improvement will still depend on mix, productivity and cost control.

CTVA's Cost Savings Expand the Earnings RunwayCorteva’s cost actions are extending the earnings runway beyond volume recovery. Operating EBITDA increased 21% year over year to $1.44 billion in the first quarter, while operating EBITDA margin expanded about 240 basis points to more than 29%.

The company generated roughly $70 million of combined productivity and input-cost benefits across Seed and Crop Protection. Lower Seed royalty costs added another tailwind, helping offset higher selling, general and administrative expenses.

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Management reaffirmed its 2026 operating EBITDA outlook of $4.0 billion to $4.2 billion, representing growth of about 7% at the midpoint. The company is also running ahead of its prior three-year, $1 billion cost-reduction plan.

Corteva’s Buy Signal Meets Mixed Style ScoresThe bottom line is that Corteva’s two-engine model gives investors both technology-led Seed growth and Crop Protection volume leverage. The planned separation may sharpen that view by allowing the market to evaluate Vylor and the future Corteva separately.

CTVA currently carries a Zacks Rank #2 (Buy), which points to favorable near-term earnings estimate trends. That is a constructive signal for investors who rely on earnings estimate revisions over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more mixed. CTVA has a Value Score of D, Growth Score of D and VGM Score of D, suggesting the stock does not screen well across those factors. Its Momentum Score of A aligns with recent outperformance, but the weaker Value, Growth and VGM scores argue for a balanced view.