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Revenue $14.1 billion, up 8.1% versus prior year Diluted EPS $4.24, up 13.4% versus prior year $1.9 billion cash from operating activities, 162% of net earnings 1.4-to-1 book-to-bill, with strong order activity in all segments , /PRNewswire/ -- General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion. Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%. Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter.

EXHIBIT H-1 "Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems – reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog," said Phebe Novakovic, chairman and chief executive officer. "We are well positioned to support our customers' needs and are continuing to make significant investments to increase output to meet strong and growing demand."

Cash and Capital Deployment

Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings. During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million. The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand.

Orders and Backlog

Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion. Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis. 

Backlog at the end of the quarter was $136.5 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion.

About General Dynamics

Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.  

WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Wednesday, July 29, 2026, at 9:00 a.m. EDT.  A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call.

This press release may contain forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company's filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release may contain some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.

EXHIBIT A

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue

$                     14,094

$                     13,041

$     1,053

8.1 %

Operating costs and expenses

(12,634)

(11,736)

(898)

Operating earnings

1,460

1,305

155

11.9 %

Other, net

(4)

15

(19)

Interest, net

(49)

(88)

39

Earnings before income tax

1,407

1,232

175

14.2 %

Provision for income tax, net

(247)

(218)

(29)

Net earnings

$                       1,160

$                       1,014

$        146

14.4 %

Earnings per share—basic

$                         4.29

$                         3.78

$       0.51

13.5 %

Basic weighted average shares outstanding

270.2

268.1

Earnings per share—diluted

$                         4.24

$                         3.74

$       0.50

13.4 %

Diluted weighted average shares outstanding

273.5

270.9

EXHIBIT B

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Six Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue

$                     27,575

$                     25,264

$     2,311

9.1 %

Operating costs and expenses

(24,695)

(22,691)

(2,004)

Operating earnings

2,880

2,573

307

11.9 %

Other, net

14

36

(22)

Interest, net

(118)

(177)

59

Earnings before income tax

2,776

2,432

344

14.1 %

Provision for income tax, net

(491)

(424)

(67)

Net earnings

$                       2,285

$                       2,008

$        277

13.8 %

Earnings per share—basic

$                         8.46

$                         7.48

$       0.98

13.1 %

Basic weighted average shares outstanding

270.2

268.6

Earnings per share—diluted

$                         8.35

$                         7.40

$       0.95

12.8 %

Diluted weighted average shares outstanding

273.8

271.3

EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Three Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue:

Aerospace

$                  3,525

$                   3,062

$            463

15.1 %

Marine Systems

4,660

4,220

440

10.4 %

Combat Systems

2,290

2,283

7

0.3 %

Technologies

3,619

3,476

143

4.1 %

Total

$                14,094

$                 13,041

$         1,053

8.1 %

Operating earnings:                                           

Aerospace

$                     510

$                      403

$            107

26.6 %

Marine Systems

342

291

51

17.5 %

Combat Systems

318

324

(6)

(1.9) %

Technologies

339

332

7

2.1 %

Corporate

(49)

(45)

(4)

(8.9) %

Total

$                  1,460

$                   1,305

$            155

11.9 %

Operating margin:

Aerospace

14.5 %

13.2 %

Marine Systems

7.3 %

6.9 %

Combat Systems

13.9 %

14.2 %

Technologies

9.4 %

9.6 %

Total

10.4 %

10.0 %

EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue:

Aerospace

$                  6,804

$                   6,088

$            716

11.8 %

Marine Systems

9,003

7,809

1,194

15.3 %

Combat Systems

4,573

4,459

114

2.6 %

Technologies

7,195

6,908

287

4.2 %

Total

$                27,575

$                 25,264

$         2,311

9.1 %

Operating earnings:                                          

Aerospace

$                  1,003

$                      835

$            168

20.1 %

Marine Systems

658

541

117

21.6 %

Combat Systems

628

615

13

2.1 %

Technologies

678

660

18

2.7 %

Corporate

(87)

(78)

(9)

(11.5) %

Total

$                  2,880

$                   2,573

$            307

11.9 %

Operating margin:

Aerospace

14.7 %

13.7 %

Marine Systems

7.3 %

6.9 %

Combat Systems

13.7 %

13.8 %

Technologies

9.4 %

9.6 %

Total

10.4 %

10.2 %

EXHIBIT E

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

(Unaudited)

July 5, 2026

December 31, 2025

ASSETS

Current assets:

Cash and equivalents

$                        4,333

$                        2,333

Accounts receivable

2,398

2,406

Unbilled receivables

9,255

8,380

Inventories

9,097

9,232

Other current assets

1,955

1,897

Total current assets

27,038

24,248

Noncurrent assets:

Property, plant and equipment, net

7,575

7,525

Intangible assets, net

1,281

1,375

Goodwill

20,927

21,009

Other assets

3,342

3,092

Total noncurrent assets

33,125

33,001

Total assets

$                      60,163

$                      57,249

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt and current portion of long-term debt                                                  

$                        1,256

$                        1,006

Accounts payable

2,874

2,678

Customer advances and deposits

11,034

9,824

Other current liabilities

3,601

3,288

Total current liabilities

18,765

16,796

Noncurrent liabilities:

Long-term debt

6,260

7,007

Other liabilities

8,312

7,824

Total noncurrent liabilities

14,572

14,831

Shareholders' equity:

Common stock

482

482

Surplus

4,535

4,403

Retained earnings

45,502

44,080

Treasury stock

(23,110)

(22,860)

Accumulated other comprehensive loss

(583)

(483)

Total shareholders' equity

26,826

25,622

Total liabilities and shareholders' equity

$                      60,163

$                      57,249

EXHIBIT F

CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

July 5, 2026

June 29, 2025

Cash flows from operating activities—continuing operations:

Net earnings

$                      2,285

$                      2,008

Adjustments to reconcile net earnings to net cash from operating activities:              

Depreciation of property, plant and equipment

348

325

Amortization of intangible and finance lease right-of-use assets

115

121

Equity-based compensation expense

107

89

Deferred income tax provision (benefit)

365

(98)

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable

8

(612)

Unbilled receivables

(846)

(200)

Inventories

135

(207)

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable

196

(261)

Customer advances and deposits

1,168

106

Other, net

154

179

Net cash provided by operating activities

4,035

1,450

Cash flows from investing activities:

Capital expenditures

(437)

(340)

Other, net

13

124

Net cash used by investing activities

(424)

(216)

Cash flows from financing activities:

Dividends paid

(834)

(785)

Repayment of fixed-rate notes

(500)

(1,500)

Purchases of common stock

(319)

(600)

Proceeds from commercial paper, net

—

696

Proceeds from fixed-rate notes

—

747

Other, net

48

39

Net cash used by financing activities

(1,605)

(1,403)

Net cash used by discontinued operations

(6)

(5)

Net increase (decrease) in cash and equivalents

2,000

(174)

Cash and equivalents at beginning of period

2,333

1,697

Cash and equivalents at end of period

$                      4,333

$                      1,523

EXHIBIT G

ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Non-GAAP Financial Measures:

Second Quarter

Six Months

2026

2025

2026

2025

Free cash flow:

Net cash provided by operating activities 

$                       1,880

$                  1,598

$                    4,035

$                    1,450

Capital expenditures

(234)

(198)

(437)

(340)

Free cash flow (a)

$                       1,646

$                  1,400

$                    3,598

$                    1,110

July 5, 2026

December 31, 2025

Net debt:

Total debt

$                       7,516

$                  8,013

Less cash and equivalents

4,333

2,333

Net debt (b)

$                       3,183

$                  5,680

Supplemental Aerospace Data:

Second Quarter

Six Months

2026

2025

2026

2025

Gulfstream Aircraft Deliveries (units):

Large-cabin aircraft

35

32

66

62

Mid-cabin aircraft

6

6

13

12

Total

41

38

79

74

Aerospace Book-to-Bill:

Orders (c)

$                       5,278

$                  4,003

$                    9,121

$                    6,364

Revenue

3,525

3,062

6,804

6,088

Book-to-Bill Ratio

1.5x

1.3x

1.3x

1.0x

(a)  

We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure

for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business

acquisitions, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to assess the quality of our

earnings and as a key performance measure in evaluating management.

(b)

We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for

investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an

important indicator of liquidity and financial position.

(c)

Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.

EXHIBIT H

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

Funded

Unfunded

Total

Backlog

Estimated

Potential

Contract Value*

Total

Estimated

Contract Value

Second Quarter 2026:                         

Aerospace

$            22,992

$                 985

$            23,977

$                     1,170

$               25,147

Marine Systems

42,356

22,826

65,182

7,442

72,624

Combat Systems

27,507

1,843

29,350

10,847

40,197

Technologies

11,256

6,733

17,989

30,945

48,934

Total

$          104,111

$            32,387

$          136,498

$                   50,404

$             186,902

First Quarter 2026:

Aerospace

$            21,172

$              1,095

$            22,267

$                     1,040

$               23,307

Marine Systems

40,598

23,373

63,971

12,519

76,490

Combat Systems

25,532

1,383

26,915

11,770

38,685

Technologies

10,818

6,869

17,687

32,272

49,959

Total

$            98,120

$            32,720

$          130,840

$                   57,601

$             188,441

Second Quarter 2025:      

Aerospace

$            18,676

$              1,227

$            19,903

$                     1,165

$               21,068

Marine Systems

39,298

13,674

52,972

14,708

67,680

Combat Systems

15,961

616

16,577

9,592

26,169

Technologies

9,945

4,285

14,230

32,011

46,241

Total

$            83,880

$            19,802

$          103,682

$                   57,476

$             161,158

*   

The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and

unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase

new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order.

For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract

value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.

EXHIBIT H-1

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

https://mmx.prnewswire.com/media/MS1959817/GD-Q2.jpg?id=OA2797589

SOURCE General Dynamics

, /PRNewswire/ -- Aon plc (NYSE: AON) today reported results for the three months ended June 30, 2026.

Aon delivered another quarter of strong performance, including 2% total revenue growth, 5% organic revenue growth and operating margin expansion. We continue to execute our Aon United strategy, accelerated by the 3x3 Plan, to meet rising client demand Our free cash flow generation and robust balance sheet position support substantial financial flexibility. We returned $775 million to shareholders during the quarter through $600 million of share repurchases —  exceeding our full-year objective of at least $1 billion — and $175 million of dividends We are reaffirming 2026 guidance of mid-single-digit or greater organic revenue growth, 70-80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth
Second Quarter 2026

First Half 2026

(millions, except percentages and per share data)

2026

2025

Change

2026

2025

Change

Total revenue

$4,246

$4,155

2 %

$9,280

$8,884

4 %

Organic revenue growth (Non-GAAP)

5 %

5 %

Operating income

$915

$859

7 %

$2,630

$2,320

13 %

Adjusted operating income (Non-GAAP)

$1,227

$1,171

5 %

$3,193

$2,987

7 %

Operating margin

21.5 %

20.7 %

80bps

28.3 %

26.1 %

220bps

Adjusted operating margin (Non-GAAP)

28.9 %

28.2 %

70bps

34.4 %

33.6 %

80bps

Diluted EPS

$2.58

$2.66

(3) %

$8.22

$7.10

16 %

Adjusted EPS (Non-GAAP)

$3.81

$3.49

9 %

$10.29

$9.17

12 %

Cash provided by operations

$556

$796

(30) %

$986

$936

5 %

Free cash flow (Non-GAAP)

$483

$732

(34) %

$846

$816

4 %

"Our second-quarter results demonstrate the consistency of our execution and the strength of our business model," said Greg Case, president and CEO. "We delivered 5% organic revenue growth, operating margin expansion, and 9% adjusted EPS growth, reflecting robust client demand, disciplined execution, and durable through-the-cycle performance."

"The structural advantage created by our Aon United strategy, coupled with AI-enabled analytical insights and innovative capital solutions, continues to differentiate Aon in the marketplace," Case added. "As clients navigate increasing complexity, we are expanding our addressable market, creating new opportunities with both traditional and non-traditional sources of capital, and generating the financial flexibility to invest for growth while returning significant capital to shareholders. We remain confident in our strategy, our outlook, and our ability to deliver sustainable long-term value."

Net income attributable to Aon shareholders in the second quarter decreased 3%, to $2.58 per share on a diluted basis, compared to $2.66 per share on a diluted basis, in the prior-year period. Adjusted net income per share attributable to Aon shareholders increased 9% to $3.81 on a diluted basis, including a de minimis impact if prior-year period results were translated at current period foreign exchange rates ("foreign currency translation"), compared to $3.49 in the prior-year period. Certain items that impacted second-quarter results and comparisons with the prior-year period are detailed in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release.

SECOND-QUARTER 2026 FINANCIAL SUMMARY

Total revenue in the second quarter increased 2% to $4.2 billion compared to the prior-year period, reflecting 5% organic revenue growth and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures. Risk Capital revenue increased $140 million, or 5%, to $3.0 billion and Human Capital revenue decreased $47 million, or 4%, to $1.2 billion.

Total operating expenses in the second quarter increased 1% to $3.3 billion compared to the prior-year period due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as an unfavorable impact from foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business, $25 million of net restructuring savings, and lower compensation expense. Risk Capital operating expenses increased $88 million, or 4%, and Human Capital operating expenses decreased $97 million, or 8%.

Foreign currency translation had a de minimis impact on both diluted EPS and adjusted EPS in the second quarter. If currency were to remain stable at today's rates, the Company would expect a de minimis impact on adjusted EPS in the third quarter of 2026 and a favorable impact on adjusted EPS of approximately $0.42 per share for the full year 2026.

Effective tax rate was 22.0% in the second quarter compared to 15.5% in the prior-year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the second quarter of 2026 was 20.1% compared to 16.5% in the prior-year period. The primary drivers of the change in the effective tax rate were changes to the geographical distribution of income and an unfavorable impact from discrete items compared to a favorable impact in the prior-year period. The primary drivers of the change in the adjusted effective tax rate were changes to the geographical distribution of income and a lower favorable impact from discrete items.

Weighted average diluted shares outstanding decreased to 213.9 million in the second quarter compared to 217.3 million in the prior-year period. The Company repurchased 1.9 million class A ordinary shares for approximately $600 million in the second quarter. As of June 30, 2026, the Company had approximately $7.7 billion of remaining authorization under its share repurchase program.

YEAR-TO-DATE 2026 CASH FLOW SUMMARY

Cash flows provided by operations for the first six months of 2026 increased $50 million, or 5%, to $986 million compared to the prior-year period, as strong adjusted operating income growth offset the cash tax payment related to NFP Wealth and impact of working capital.

Free cash flow, defined as cash flow from operations less capital expenditures, increased 4%, to $846 million for the first six months of 2026 compared to the prior-year period, reflecting an increase in cash flows provided by operations, partially offset by a $20 million increase in capital expenditures.

SECOND-QUARTER 2026 REVENUE REVIEW

The second-quarter revenue reviews provided below include supplemental information related to organic revenue growth, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 10 of this press release.

Three Months Ended June 30,

(millions)

2026

2025

%
Change

Less:
Currency
Impact

Less:
Fiduciary
Investment
Income

Less:
Acquisitions,
Divestitures 
& Other

Organic
Revenue
Growth

Risk Capital Revenue:

Commercial Risk Solutions

$         2,295

$         2,178

5 %

1 %

— %

(1) %

5 %

Reinsurance Solutions

711

688

3

—

—

(2)

5

Human Capital Revenue:

Health Solutions

818

772

6

1

—

—

5

Wealth Solutions

426

519

(18)

1

—

(24)

5

Eliminations

(4)

(2)

N/A

N/A

N/A

N/A

N/A

Total revenue

$         4,246

$         4,155

2 %

1 %

— %

(4) %

5 %

Total revenue increased $91 million, or 2%, compared to the prior-year period, reflecting 5% organic revenue growth, driven by net new business and ongoing strong retention, and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures largely due to the sales of the NFP Wealth business and Stroz Friedberg. Risk Capital revenue increased $140 million, or 5%, and Human Capital revenue decreased $47 million, or 4%.

Risk Capital

Commercial Risk Solutions Organic revenue growth of 5% reflects growth in EMEA and North America, driven by net new business and ongoing strong retention. Net market impact was modestly positive. Within North America, performance was highlighted by strong growth in U.S. core P&C and double-digit growth in construction.

Reinsurance Solutions Organic revenue growth of 5% reflects growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and our Strategy and Technology Group. Net market impact was unfavorable in the quarter.

Human Capital

Health Solutions Organic revenue growth of 5% reflects strong growth in core health and benefits, including particular strength internationally, driven by net new business and ongoing strong retention, as well as growth in Talent Solutions driven by strong growth in talent analytics. Net market impact was slightly negative.

Wealth Solutions Organic revenue growth of 5% reflects strong growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change.

SECOND-QUARTER 2026 EXPENSE REVIEW

Three Months Ended June 30,

(millions)

2026

2025

$ Change

% Change

Expenses

Compensation and benefits

$        2,271

$        2,360

$        (89)

(4) %

Information technology

162

136

26

19

Premises

85

85

—

—

Depreciation of fixed assets

49

47

2

4

Amortization and impairment of intangible assets

174

201

(27)

(13)

Other general expense

494

373

121

32

Accelerating Aon United Program expenses

96

94

2

2

Total operating expenses

$        3,331

$        3,296

$         35

1 %

Compensation and benefits expense decreased $89 million, or 4%, compared to the prior-year period, due primarily to lower expenses from the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions, partially offset by the unfavorable impact of foreign currency translation and expenses associated with 5% organic revenue growth and investments in long-term growth.

Information technology expense increased $26 million, or 19%, compared to the prior-year period, due primarily to Aon Business Services investments in ongoing technology initiatives.

Premises expense was flat compared to the prior-year period, as we continued to optimize our real estate footprint and recognize savings from Accelerating Aon United restructuring actions.

Depreciation of fixed assets increased $2 million, or 4%, compared to the prior-year period.

Amortization and impairment of intangible assets decreased $27 million, or 13%, compared to the prior-year period, due primarily to the decrease in intangible assets associated with the sale of the NFP Wealth business.

Other general expense increased $121 million, or 32%, compared to the prior-year period, due primarily to non-recurring gains including sales of portfolios in the prior-year period, partially offset by lower expenses associated with the sale of the NFP Wealth business.

Accelerating Aon United Restructuring Program expense increased $2 million, or 2%, compared to the prior-year period, due primarily to costs related to workforce optimization.

SECOND-QUARTER 2026 INCOME SUMMARY

Certain noteworthy items impacted adjusted operating income and adjusted operating margin in the second quarters of 2026 and 2025, which are also described in detail in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release.

Three Months Ended June 30,

(millions)

2026

2025

% Change

Revenue

$     4,246

$     4,155

2 %

Expenses

3,331

3,296

1 %

Operating income

$        915

$        859

7 %

Operating margin

21.5 %

20.7 %

Adjusted operating income

$     1,227

$     1,171

5 %

Adjusted operating margin

28.9 %

28.2 %

Operating income increased $56 million and operating margin increased 80 basis points to 21.5%, each compared to the prior-year period. Adjusted operating income increased $56 million, or 5%, and adjusted operating margin increased 70 basis points to 28.9%, each compared to the prior-year period. The increase in adjusted operating income reflects organic revenue growth, scale improvements in ABS and net restructuring savings, partially offset by investments for growth.

Interest income increased $5 million compared to the prior-year period, primarily reflecting higher cash balances due to the sale of the NFP Wealth business. Interest expense decreased $33 million compared to the prior-year period, reflecting lower total debt.

Other expense was $17 million compared to other income of $56 million in the prior-year period, primarily due to the absence of deferred consideration recognized in the prior-year period related to the 2017 sale of our outsourcing business. Adjusted other expense was $17 million compared to $32 million in the prior-year period, primarily reflecting a favorable impact of foreign currency remeasurement of assets and liabilities in non-functional currencies and a decrease in non-cash pension expense.

Net income attributable to Aon shareholders decreased 5% to $551 million compared to $579 million in the prior-year period. Adjusted net income attributable to Aon shareholders increased 7% to $814 million compared to $759 million in the prior-year period.

Conference Call, Presentation Slides, and Webcast Details

The Company will host a conference call on Wednesday, July 29, 2026 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at ir.aon.com.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

Follow Aon on LinkedIn, X, Facebook, and Instagram. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts.

Safe Harbor Statement
This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations. All statements, other than statements of historical facts, that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as our outlook, market and industry conditions, including competitive and pricing trends, the development and performance of our services and products, our cost structure and the outcome of cost-saving or restructuring initiatives, including  the impacts of the Accelerating Aon United Program, the integration of NFP, actual or anticipated legal settlement expenses, future capital expenditures, growth in commissions and fees, changes to the composition or level of our revenues, cash flow and liquidity, expected tax rates, expected foreign currency translation impacts, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of our business and operations, plans, references to future successes, and expectations with respect to the benefits of the acquisition of NFP are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "confidence", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "positioned", "should", "will", "would" or similar expressions, it is making forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in or anticipated by the forward-looking statements: changes in the competitive environment, due to macroeconomic conditions or otherwise, or damage to Aon's reputation; fluctuations in currency exchange, interest, or inflation rates that could impact our financial condition or results; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funded status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon's debt and the terms thereof reducing Aon's flexibility or increasing borrowing costs; rating agency actions that could limit Aon's access to capital and our competitive position; volatility in Aon's global tax rate due to  being subject to a variety of different factors, including the application of the OECD's Pillar Two tax regime by Ireland, the U.K., Singapore, and many E.U. member states, among others, or other pending proposals in those and other countries, which could create volatility in that tax rate; changes in Aon's accounting estimates or assumptions on Aon's financial statements; limits on Aon's subsidiaries' ability to pay dividends or otherwise make payments to Aon; the impact of legal proceedings and other contingencies, including those arising from or related to acquisition or disposition transactions, errors and omissions and other claims against Aon (including proceeding and contingencies relating to transactions for which capital was arranged by Vesttoo Ltd. or related to actions we may take in being responsible for making decisions on behalf of clients in our investment business or in other advisory services that we currently provide, or may provide in the future); the impact of, and potential challenges in complying with, laws and regulations in the jurisdictions in which Aon operates, particularly given the global nature of Aon's operations and the possibility of differing or conflicting laws and regulations, or the application or interpretation thereof, across jurisdictions in which Aon does business, including but not limited to in the areas of cybersecurity, data privacy and artificial intelligence; the impact of any regulatory investigations brought in Ireland, the U.K., the U.S. and other countries; failure to protect intellectual property rights or allegations that Aon infringes on the intellectual property rights of others; general economic and political conditions in different countries in which Aon does business around the world; the failure to retain, attract and develop experienced and qualified personnel; international risks associated with our global operations, including geopolitical conflicts, tariffs, sanctions, or changes in trade policies; the effects of natural or human-caused disasters, including the effects of health pandemics and the impacts of climate related events; any system or network disruption or breach resulting in operational interruption or improper disclosure of confidential, personal, or proprietary data, and resulting liabilities or damage to our reputation; Aon's ability to develop, implement, update and enhance new technology; the actions taken by third parties that perform aspects of Aon's business operations and client services; Aon's ability to continue, and the costs and risks associated with, growing, developing and integrating acquired business, and entering into new lines of business or products; Aon's ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; Aon's ability to develop and implement innovative growth strategies and initiatives intended to yield cost savings (including the Accelerating Aon United Program), and the ability to achieve such growth or cost savings; the effects of Irish law on Aon's operating flexibility and the enforcement of judgments against Aon; and adverse effects on the market price of Aon's securities and/or operating results for any reason, including, without limitation, because of a failure to realize the expected benefits of the acquisition of NFP (including anticipated revenue and growth synergies) in the expected timeframe, or at all.

Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2025 for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.

Explanation of Non-GAAP Measures
This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), including organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin, adjusted earnings per share, adjusted net income attributable to Aon shareholders, adjusted diluted net income per share ("EPS"), adjusted effective tax rate, adjusted other income (expense), and adjusted income before income taxes that exclude the effects of intangible asset amortization and impairment, Accelerating Aon United Program expenses, contingent consideration, NFP integration costs, certain pension settlements, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior-year period), divestitures (including held for sale disposal groups, if any, which are adjusted from organic revenue growth upon classification as held-for-sale), transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. Currency impact represents the effect on prior-year period results if they were translated at current period foreign exchange rates. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. Free cash flow is cash flows from operating activity less capital expenditures. The adjusted effective tax rate excludes the applicable tax impact associated with adjustments previously described, generally at the estimated annual effective tax rate or jurisdictional rate, where appropriate. Beginning in the third quarter of 2024, the adjusted effective tax rate also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Management also uses these measures to assess operating performance and performance for compensation. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon's Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments. Aon does not provide a reconciliation of forward-looking non-GAAP measures, such as adjusted operating margin, adjusted other income (expense) and adjusted effective tax rate, where Aon believes such a reconciliation would imply a degree of precision and certainty that could be misleading and is unable to reasonably predict certain items contained in the corresponding GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of Aon's control, or cannot be reasonably predicted. For these reasons, Aon is also unable to address the probable significance of the unavailable information.

 Investor Contact:

Media Contact:

 Hallie Miller

Will Dunn

 [email protected]

Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114

International: +1 312 381 3024

[email protected]

Aon plc
Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

(millions, except per share data)

2026

2025

%
Change

2026

2025

%

Change

Revenue

Total revenue

$  4,246

$  4,155

2 %

$  9,280

$  8,884

4 %

Expenses

Compensation and benefits

2,271

2,360

(4) %

4,664

4,609

1 %

Information technology

162

136

19 %

306

272

13 %

Premises

85

85

— %

166

167

(1) %

Depreciation of fixed assets

49

47

4 %

95

93

2 %

Amortization and impairment of intangible assets

174

201

(13) %

326

400

(19) %

Other general expense

494

373

32 %

905

819

11 %

Accelerating Aon United Program expenses

96

94

2 %

188

204

(8) %

Total operating expenses

3,331

3,296

1 %

6,650

6,564

1 %

Operating income

915

859

7 %

2,630

2,320

13 %

Interest income

5

—

100 %

17

5

240 %

Interest expense

(179)

(212)

(16) %

(358)

(418)

(14) %

Other income (expense)

(17)

56

(130) %

(12)

46

(126) %

Income before income taxes

724

703

3 %

2,277

1,953

17 %

Income tax expense (1)

159

109

46 %

473

377

25 %

Net income

565

594

(5) %

1,804

1,576

14 %

Less: Net income attributable to redeemable and
nonredeemable noncontrolling interests

14

15

(7) %

41

32

28 %

Net income attributable to Aon shareholders

$    551

$    579

(5) %

$  1,763

$  1,544

14 %

Basic net income per share attributable to Aon
shareholders

$   2.58

$   2.68

(4) %

$   8.25

$   7.14

16 %

Diluted net income per share attributable to Aon
shareholders

$   2.58

$   2.66

(3) %

$   8.22

$   7.10

16 %

Weighted average ordinary shares outstanding - basic

213.2

216.2

(1) %

213.8

216.3

(1) %

Weighted average ordinary shares outstanding - diluted

213.9

217.3

(2) %

214.6

217.6

(1) %

(1)

The effective tax rate was 22.0% and 15.5% for the three months ended June 30, 2026 and 2025, respectively, and 20.8% and 19.3% for the six months ended June 30, 2026 and 2025, respectively.

Aon plc
Segment Results (Unaudited)

Three Months Ended June 30,

Risk Capital

Human Capital

Corporate/Eliminations
(1)

Total Consolidated

(millions, except percentages)

2026

2025

2026

2025

2026

2025

2026

2025

Revenue

Total revenue

$         3,006

$         2,866

$         1,244

$         1,291

$     (4)

$     (2)

$         4,246

$         4,155

Expenses

Compensation and benefits

1,528

1,541

715

796

28

23

2,271

2,360

Information technology

106

88

51

45

5

3

162

136

Premises

56

54

28

30

1

1

85

85

Other expenses (2)

400

319

283

303

130

93

813

715

Total operating expenses

2,090

2,002

1,077

1,174

164

120

3,331

3,296

Operating income

$ 916

$ 864

$ 167

$ 117

$  (168)

$  (122)

$ 915

$ 859

Operating margin

30.5 %

30.1 %

13.4 %

9.1 %

21.5 %

20.7 %

Six Months Ended June 30,

Risk Capital

Human Capital

Corporate/Eliminations
(1)

Total Consolidated

(millions, except percentages)

2026

2025

2026

2025

2026

2025

2026

2025

Revenue

Total revenue

$         6,508

$         6,057

$         2,783

$         2,836

$    (11)

$     (9)

$         9,280

$         8,884

Expenses

Compensation and benefits

3,160

3,002

1,474

1,570

30

37

4,664

4,609

Information technology

202

178

97

90

7

4

306

272

Premises

109

106

55

59

2

2

166

167

Other expenses (2)

739

710

547

597

228

209

1,514

1,516

Total operating expenses

4,210

3,996

2,173

2,316

267

252

6,650

6,564

Operating income

$         2,298

$         2,061

$ 610

$ 520

$  (278)

$  (261)

$         2,630

$         2,320

Operating margin

35.3 %

34.0 %

21.9 %

18.3 %

28.3 %

26.1 %

(1)

Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.

(2)

Includes expenses related to depreciation of fixed assets, amortization and impairment of intangible assets, Accelerating Aon United Program expenses, and other general expenses.

Aon plc
Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited)Organic Revenue Growth (Unaudited)

Three Months Ended June 30,

(millions, except percentages)

2026

2025

%
Change

Less:
Currency
Impact (1)

Less:
Fiduciary
Investment
Income (2)

Less:
Acquisitions,
Divestitures 
& Other

Organic
Revenue
Growth (3)

Risk Capital Revenue:

Commercial Risk Solutions

$         2,295

$        2,178

5 %

1 %

— %

(1) %

5 %

Reinsurance Solutions

711

688

3

—

—

(2)

5

Human Capital Revenue:

Health Solutions

818

772

6

1

—

—

5

Wealth Solutions

426

519

(18)

1

—

(24)

5

Eliminations

(4)

(2)

N/A

N/A

N/A

N/A

N/A

Total revenue

$         4,246

$        4,155

2 %

1 %

— %

(4) %

5 %

Six Months Ended June 30,

(millions, except percentages)

2026

2025

%
Change

Less:
Currency
Impact (1)

Less:
Fiduciary
Investment
Income (2)

Less:
Acquisitions,
Divestitures 
& Other

Organic
Revenue
Growth (3)

Risk Capital Revenue:

Commercial Risk Solutions

$         4,518

$        4,180

8 %

3 %

— %

(1) %

6 %

Reinsurance Solutions

1,990

1,877

6

2

—

—

4

Human Capital Revenue:

Health Solutions

1,937

1,798

8

3

—

—

5

Wealth Solutions

846

1,038

(18)

2

—

(23)

3

Eliminations

(11)

(9)

N/A

N/A

N/A

N/A

N/A

Total revenue

$         9,280

$        8,884

4 %

3 %

— %

(4) %

5 %

(1)

Currency impact represents the effect on prior-year period results if they were translated at current period foreign exchange rates.

(2)

Fiduciary investment income for the three months ended June 30, 2026 and 2025 was $58 million and $66 million, respectively. Fiduciary investment income for the six months ended June 30, 2026 and 2025 was $113 million and $133 million, respectively.

(3)

Organic revenue growth includes the impact of certain intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior-year period), divestitures (including held for sale disposal groups, if any), transfers between revenue lines, and gains or losses on derivatives accounted for as hedges.

Free Cash Flow (Unaudited)

Three Months Ended June 30,

(millions)

2026

2025

% Change

Cash Provided by Operating Activities

$          556

$          796

(30) %

Capital Expenditures

(73)

(64)

14 %

Free Cash Flow (1)

$          483

$          732

(34) %

Six Months Ended June 30,

(millions)

2026

2025

% Change

Cash Provided by Operating Activities

$          986

$          936

5 %

Capital Expenditures

(140)

(120)

17 %

Free Cash Flow (1)

$          846

$          816

4 %

(1)

Free cash flow is defined as cash flows from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures.

Aon plc
Reconciliation of Non-GAAP Measures - Operating Income and Operating Margin (Unaudited) (1)

Three Months Ended June 30,

Risk Capital

Human Capital

Corporate/Eliminations
(2)

Total Consolidated

(millions, except percentages)

2026

2025

2026

2025

2026

2025

2026

2025

Revenue

$3,006

$2,866

$1,244

$1,291

$    (4)

$    (2)

$4,246

$4,155

Operating income

$ 916

$ 864

$ 167

$ 117

$  (168)

$  (122)

$ 915

$ 859

Amortization and impairment of intangible assets

88

86

86

115

—

—

174

201

Change in the fair value of contingent consideration

3

(9)

6

(1)

—

—

9

(10)

Accelerating Aon United Program expenses (3)

14

32

(1)

6

83

56

96

94

Integration costs (4)

7

3

10

9

16

15

33

27

Adjusted operating income

$1,028

$ 976

$ 268

$ 246

$   (69)

$   (51)

$1,227

$1,171

Operating margin

30.5 %

30.1 %

13.4 %

9.1 %

21.5 %

20.7 %

Adjusted operating margin

34.2 %

34.1 %

21.5 %

19.1 %

28.9 %

28.2 %

Six Months Ended June 30, 2026

Risk Capital

Human Capital

Corporate/Eliminations
(2)

Total Consolidated

(millions, except percentages)

2026

2025

2026

2025

2026

2025

2026

2025

Revenue

$6,508

$6,057

$2,783

$2,836

$   (11)

$    (9)

$9,280

$8,884

Operating income

$2,298

$2,061

$ 610

$ 520

$  (278)

$  (261)

$2,630

$2,320

Amortization and impairment of intangible assets

161

170

165

230

—

—

326

400

Change in the fair value of contingent consideration

(2)

(3)

6

10

—

—

4

7

Accelerating Aon United Program expenses (3)

33

51

4

10

151

143

188

204

Integration costs (4)

8

14

12

21

25

21

45

56

Adjusted operating income

$2,498

$2,293

$  797

$  791

$  (102)

$   (97)

$3,193

$2,987

Operating margin

35.3 %

34.0 %

21.9 %

18.3 %

28.3 %

26.1 %

Adjusted operating margin

38.4 %

37.9 %

28.6 %

27.9 %

34.4 %

33.6 %

(1)

Certain noteworthy items impacting operating income in the three and six months ended June 30, 2026 and 2025 are described in this reconciliation. The items shown with the caption "adjusted" are non-GAAP measures.

(2)

Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.

(3)

Total Accelerating Aon United Program expenses include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation.

(4)

The NFP transaction has continued to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. Integration costs related to the NFP acquisition were substantially completed at June 30, 2026.

Aon plc
Reconciliation of Non-GAAP Measures - Diluted Earnings Per Share (Unaudited) (1)

(millions, except percentages)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

%
Change

2026

2025

%
Change

Operating income

$  915

$  859

7 %

$ 2,630

$ 2,320

13 %

Adjusted operating income (2)

1,227

1,171

5 %

3,193

2,987

7 %

Interest income

5

—

100 %

17

5

240 %

Interest expense

(179)

(212)

(16) %

(358)

(418)

(14) %

Other income (expense) (3)

(17)

56

(130) %

(12)

46

(126) %

Less: Certain deferred consideration (4)

—

88

(100) %

—

108

(100) %

Less: Gains from disposition of certain business (5)

—

—

— %

20

—

100 %

Adjusted other income (expense)

$   (17)

$  (32)

(47) %

$  (32)

$  (62)

(48) %

Adjusted income before income taxes

1,036

927

12 %

2,820

2,512

12 %

Adjusted income tax expense (6)

208

153

36 %

570

485

18 %

Adjusted net income

828

774

7 %

2,250

—

2,027

11 %

Less: Net income attributable to redeemable and nonredeemable
noncontrolling interests

14

15

(7) %

41

32

28 %

Adjusted net income attributable to Aon shareholders

$  814

$  759

7 %

$ 2,209

$   —

$ 1,995

11 %

Adjusted diluted net income per share attributable to Aon shareholders

$  3.81

$  3.49

9 %

$ 10.29

$  9.17

12 %

Weighted average ordinary shares outstanding - diluted 

213.9

217.3

(2) %

214.6

217.6

(1) %

Effective tax rates (6)

U.S. GAAP

22.0 %

15.5 %

20.8 %

19.3 %

Non-GAAP

20.1 %

16.5 %

20.2 %

19.3 %

(1)

Certain noteworthy items impacting operating income in the three and six months ended June 30, 2026 and 2025 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP financial measures.

(2)

Refer to the previous page for a reconciliation of Operating income and Adjusted operating income.

(3)

Other Income (expense) includes $15 million and $21 million of net periodic pension expense for the three months ended June 30, 2026 and 2025, respectively. Other Income (expense) includes $30 million and $44 million of net periodic pension expense for the six months ended June 30, 2026 and 2025, respectively.

(4)

During the three and six months ended June 30, 2025, gains of $88 million and $108 million were recognized, respectively. These gains related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior year period and were excluded from Adjusted other income (expense).

(5)

During the six months ended June 30, 2026, Aon recognized a $20 million gain related to the prior-year sale of a significant majority of NFP's Wealth business, all of which was recognized in the first quarter of 2026.

(6)

Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain integration costs related to the acquisition of NFP, additional gain from the disposal of the NFP Wealth business, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson.

Aon plc
Condensed Consolidated Statements of Financial Position

As of

(Unaudited)

(millions) 

June 30,
2026

December 31,
2025

Assets

Current assets

Cash and cash equivalents

$            1,062

$            1,195

Short-term investments

205

1,603

Receivables, net

5,348

4,209

Fiduciary assets (1)

20,698

17,889

Other current assets

801

878

  Total current assets

28,114

25,774

Goodwill

15,884

15,797

Intangible assets, net

5,657

5,727

Fixed assets, net

761

702

Operating lease right-of-use assets

750

677

Deferred tax assets

770

748

Prepaid pension

596

603

Other non-current assets

815

756

Total assets

$           53,347

$           50,784

Liabilities, redeemable noncontrolling interests, and equity

Liabilities

Current liabilities

Accounts payable and accrued liabilities

$            2,266

$            2,861

Short-term debt and current portion of long-term debt

2,020

589

Fiduciary liabilities

20,698

17,889

Other current liabilities

2,242

1,887

  Total current liabilities

27,226

23,226

Long-term debt

12,947

14,660

Non-current operating lease liabilities

730

641

Deferred tax liabilities

342

340

Pension, other postretirement, and postemployment liabilities

1,002

1,084

Other non-current liabilities

1,390

1,285

Total liabilities

43,637

41,236

Redeemable noncontrolling interests

24

89

Equity

Ordinary shares - $0.01 nominal value

     Authorized: 500.0 shares (issued: at June 30, 2026 - 212.0; at December 31, 2025 - 214.5)

2

2

Additional paid-in capital

13,500

13,438

Retained earnings (Accumulated deficit)

82

(245)

Accumulated other comprehensive loss

(3,986)

(3,843)

 Total Aon shareholders' equity

9,598

9,352

Nonredeemable noncontrolling interests

88

107

Total equity

9,686

9,459

Total liabilities, redeemable noncontrolling interests and equity

$           53,347

$           50,784

(1)

Includes cash and short-term investments of $8.0 billion and $7.4 billion as of June 30, 2026 and December 31, 2025, respectively.

Aon plc
Condensed Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended June 30,

(millions) 

2026

2025

Cash flows from operating activities

Net income

$        1,804

$        1,576

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

 Gain from sales of businesses

(20)

—

 Depreciation of fixed assets

95

93

 Amortization and impairment of intangible assets

326

400

 Share-based compensation expense

204

266

 Deferred income taxes

(90)

(242)

 Other, net

1

(111)

Change in assets and liabilities:

 Receivables, net

(1,180)

(902)

 Accounts payable and accrued liabilities

(605)

(738)

 Accelerating Aon United Program liabilities

24

15

 Current income taxes

(69)

(73)

 Pension, other postretirement and postemployment liabilities

(23)

(12)

 Other assets and liabilities

519

664

Cash provided by operating activities

986

936

Cash flows from investing activities

Proceeds from investments

33

71

Purchases of investments

(36)

(42)

Net sales (purchases) of short-term investments - non fiduciary

1,394

(153)

Acquisition of businesses, net of cash and funds held on behalf of clients

(322)

(143)

Sale of businesses, net of cash and funds held on behalf of clients

21

119

Capital expenditures

(140)

(120)

Cash provided by (used for) investing activities

950

(268)

Cash flows from financing activities

Share repurchase

(1,100)

(500)

Proceeds from issuance of shares

28

33

Cash paid for employee taxes on withholding shares

(141)

(194)

Commercial paper issuances, net of repayments

297

480

Repayment of debt

(593)

(300)

Increase in fiduciary liabilities, net of fiduciary receivables

710

569

Cash dividends to shareholders

(337)

(308)

Redeemable and nonredeemable noncontrolling interests, and other financing activities

(163)

(153)

Cash used for financing activities

(1,299)

(373)

Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients

(147)

696

Net increase in cash and cash equivalents and funds held on behalf of clients

490

991

Cash, cash equivalents and funds held on behalf of clients at beginning of period

8,573

8,333

Cash, cash equivalents and funds held on behalf of clients at end of period

$        9,063

$        9,324

Reconciliation of cash and cash equivalents and funds held on behalf of clients:

Cash and cash equivalents

$        1,062

$        1,008

Cash and cash equivalents and funds held on behalf of clients classified as held for sale

—

1

Funds held on behalf of clients

8,001

8,315

Total cash and cash equivalents and funds held on behalf of clients

$        9,063

$        9,324

SOURCE Aon Corporation

The Ellisons may still get Warner Bros. But it won't be easy.

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Chief Correspondent covering media and technology

Larry Ellison backed the deal that let his son David buy Paramount this year. They were set to acquire Warner Bros. Discovery in the coming weeks — but a court challenge from the state of California means all bets are off. Eric Charbonneau/Getty Images for The Hollywood Reporter Up until last week, just about everyone in Hollywood and Wall Street believed that Larry and David Ellison's Paramount was going to own Warner Bros. Discovery in the near future.

Now an antitrust lawsuit brought by California's attorney general and other state AGs has thrown that into doubt. The Paramount-WBD deal is on hold for months, or maybe more, while the case works its way through the legal system.

There is a lot of spin and posturing around this one, with good reason: There's a lot of uncertainty about whether the Ellisons will eventually get what they want.

I asked Bloomberg's Lucas Shaw, the well-sourced reporter who has been covering the ins and outs of the deal for nearly a year, to walk me through what happens next: Could this get settled before a court verdict, and what would that look like? How might this November's election results affect all of this? And what does this mean for Netflix, which was going to buy WBD before it walked away?

You can hear my entire conversation with Lucas, which also tackles Netflix's growth and engagement issues, and the very mixed state of Hollywood's theatrical business, in my Channels podcast.

The following is an edited excerpt of our conversation:

Peter Kafka: What are the odds that this lawsuit gets settled before a verdict? That the Ellisons just say to the states, "Look, we'll give you something. It's more than we wanted to give you." And then the states say, "OK, this deal can go through."

Lucas Shaw: People thought that they would likely find some settlement before this trial started. That was the prevailing wisdom: That the states were fighting the deal because the Trump DOJ was not. And that they were unlikely to win or actually block the deal, but that they could garner some concessions.

The last month has really damaged the conventional wisdom. A lot of people, myself included, have realized that maybe they underestimated the forces fighting against the deal.

I was in that group too. I thought well, the Ellisons are gonna get this done one way or another. Some combination of brute force and maybe political favors. They really want it, and they are willing to spend an enormous amount of money.

They were willing to outbid Netflix, a much larger, much wealthier company. They spent months fighting the [Netflix-WBD deal], which at the time seemed like spoiled grapes. But they ended up playing a very canny political game, applying a lot of pressure on both Netflix and Warner Bros., to eventually get it.

And while I thought that the states were going to fight against the deal, I assumed that eventually the Ellisons would prevail, which of course, they may still.

In terms of what they could offer: One of the reasons why a settlement may prove difficult — and of course this is all posturing and bargaining, so maybe it's easier than we think — is that the Ellisons have been offering behavioral remedies. And the states are saying behavioral remedies don't really work.

They want structural remedies. So that would mean Paramount and Warner Brothers agreeing to sell things or divest things as part of this deal. There are assets that Paramount and Warner Brothers could divest, and it wouldn't really hurt the combined company that much. But they have not shown a willingness to get rid of things.

Democrats could take back all or part of Congress in November. Is that a worry for Paramount?

Yes, but a small one. There was never a lot that legislators could do about this deal. But especially now that the federal government has blessed it, we're really in the realm of the courts. I guess it could go to the Supreme Court.

A Democrat-controlled House will be annoying [for the Ellisons], especially given the belief that David Ellison and the current leadership of Paramount has made changes to CBS News that have made them more friendly to the Trump administration. And they're going to get CNN as part of this.

So there will be a lot of scrutiny of whatever happens with the news organizations. But that is separate from the deal itself.

What does Netflix think about this? Do they think there's now an opportunity for them to end up with Warners after all?

I think for now they're just sitting there with a big bucket of popcorn.

Look: If this deal falls apart, would Netflix look at it again? Sure. I interviewed Netflix co-CEO Ted Sarandos after his deal fell apart, and he said something like, "Maybe this'll come around again."

But their investors hated the deal. Their stock price has only continued to go down since then. So the threshold to reengaging on any deal like that would be really high.

And if we're being honest about what's happening with Paramount and the Ellisons — unless there's some dramatic change of heart for David Ellison, he's not giving up on this deal very easily.

Read next

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

Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor. 

Politics Netflix

July 29, 2026 07:01 ET  | Source: Ocugen

RMAT designation is intended to help expedite development of new regenerative medicines that have potential to treat serious medical conditions with significant unmet needThe designation could accelerate OCU410’s regulatory path while further differentiating its one-time treatment for life approach from current therapies requiring chronic administration MALVERN, Pa, July 29, 2026 (GLOBE NEWSWIRE) -- Ocugen, Inc. (“Ocugen” or the “Company”) (NASDAQ: OCGN), a pioneering biotechnology leader in gene therapies for blindness diseases, today announced that the U.S. Food and Drug Administration (FDA) has granted RMAT designation to Ocugen’s investigational product OCU410 for the treatment of geographic atrophy (GA), secondary to dry age-related macular degeneration (dAMD).

"RMAT designation for OCU410 is a significant accomplishment that recognizes both the potential of our ‘one treatment for life’ novel gene therapy platform and the substantial unmet medical need for geographic atrophy,” said Dr. Shankar Musunuri, Chairman, Chief Executive Officer, and Co-Founder of Ocugen. “With an estimated 2 to 3 million people in the U.S. and Europe affected, a number expected to grow as the population ages, geographic atrophy is a leading cause of irreversible blindness in older adults, highlighting the urgent need for new treatment options. We look forward to continuing to work closely with the FDA to responsibly and efficiently advance the development program for patients suffering from this devastating disease."

The RMAT designation for OCU410 was supported by Phase 2 clinical data demonstrating clinically meaningful efficacy and a favorable safety profile, with no reported serious adverse events related to drug. Based on these data, the FDA determined that OCU410 met the criteria for RMAT designation by providing preliminary clinical evidence that the therapy has the potential to address a serious condition with significant unmet medical need. This designation recognizes the promise of OCU410 as a regenerative medicine therapy and supports an expedited development pathway.

In early July 2026, Ocugen reached alignment with the FDA on the design of the OCU410 Phase 3 registrational trial, with study initiation expected in the third quarter of 2026, and a Biologics License Application (BLA) filing anticipated in 2028.

About Regenerative Medicine Advanced Therapy (RMAT) Designation
The FDA established the RMAT designation to expedite the development and review of regenerative medicine therapies intended to treat, modify, reverse, or cure serious or life-threatening diseases or conditions. RMAT designation is granted to investigational regenerative medicine therapies supported by preliminary clinical evidence indicating the potential to address unmet medical needs. Products receiving RMAT designation are eligible for all the benefits of the Fast Track and Breakthrough Therapy programs, including increased interactions with the FDA to support efficient development, eligibility for rolling BLA review, and the potential for accelerated approval and Priority Review, where appropriate.

About Dry Age-Related Macular Degeneration (dAMD) and Geographic Atrophy (GA)
Geographic atrophy is an advanced form of dAMD characterized by progressive degeneration of the macula, leading to irreversible central vision loss. Millions of patients worldwide are affected by GA, with a particularly high burden in aging populations in the United States and Europe. Despite recent approvals, treatment options remain limited and require chronic intravitreal injections, underscoring the need for innovative, durable therapies that address multiple disease mechanisms. dAMD affects approximately 10 million Americans and more than 266 million people worldwide. It is characterized by the thinning of the macula, the portion of the retina responsible for clear vision in one’s direct line of sight. dAMD involves the slow deterioration of the retina with submacular drusen (small white or yellow dots on the retina), atrophy, loss of macular function, and central vision impairment. dAMD accounts for 85-90% of all AMD cases.

About OCU410
OCU410 is an investigational, subretinal injection, AAV5-based gene therapy that delivers RORA (retinoid-related orphan receptor alpha), a nuclear receptor that regulates key pathways involved in retinal homeostasis, including oxidative stress response, complement regulation, inflammation, and lipid metabolism. OCU410 is being developed as a one-time gene therapy for patients with GA secondary to dAMD. OCU410 received Advanced Therapy Medicinal Product (ATMP) classification from the European Medicines Agency.

About Ocugen, Inc.
Ocugen, Inc. is a pioneering biotechnology company developing gene therapies for blindness. The Company’s breakthrough modifier gene therapy platform has the potential to address significant unmet medical needs across large patient populations through a gene-agnostic approach. Unlike traditional gene therapies and gene-editing technologies that target a single gene mutation, Ocugen’s modifier gene therapies are designed to address the underlying disease biology by restoring balance across multiple gene networks. The Company is currently advancing programs for inherited retinal diseases and other causes of blindness that affect millions worldwide, including retinitis pigmentosa, Stargardt disease, and geographic atrophy, an advanced form of dry age-related macular degeneration. Discover more at www.ocugen.com and follow us on LinkedIn and X.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding strategy, business plans and objectives for Ocugen’s clinical programs, plans and timelines for the preclinical and clinical development of Ocugen’s product candidates, including the therapeutic potential, clinical benefits and safety thereof, expectations regarding timing, success and data announcements of current ongoing preclinical and clinical trials, including the timing of enrollment and data readouts, the ability to initiate new clinical programs, statements regarding qualitative assessments of available data, potential benefits, expectations for ongoing clinical trials, anticipated regulatory filings and anticipated development timelines, statements regarding potential market size and commercial possibilities of Ocugen’s product candidates, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations, including, but not limited to, the risks that receipt of RMAT designation may not lead to faster development or regulatory review; that preliminary, interim and top-line clinical trial results may not be indicative of, and may differ from, final clinical data; that unfavorable new clinical trial data may emerge in ongoing clinical trials or through further analyses of existing clinical trial data; that earlier non-clinical and clinical data and testing may not be predictive of the results or success of later clinical trials; and that clinical trial data are subject to differing interpretations and assessments, including by regulatory authorities. These and other risks and uncertainties are more fully described in our annual and quarterly filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Contacts

Company affirms guidance and outlooks

, /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2026 earnings per share of $1.03 on an as-reported and an adjusted (non-GAAP) basis.

"At our investor day in June, we provided a comprehensive update on our differentiated growth story that starts with our customers," said Drew Marsh, Entergy Chair and Chief Executive Officer. "In the second quarter, we made steady progress across key customer, operational, regulatory, and financial areas. We remain solidly on track to achieve our objectives for 2026 and beyond."

Business highlights included the following:

The APSC approved Entergy Arkansas's Generating Arkansas Jobs Act rider rate update. The PUCT approved Entergy Texas's DCRF rate update. Entergy New Orleans and Entergy Louisiana each filed their annual formula rate plans. Entergy Arkansas filed its 2025 historical year formula rate plan netting adjustment. Entergy Louisiana and Entergy New Orleans each filed for an extension of their formula rate plans. Entergy Corporation completed a $2.175 billion common stock offering with a forward component. Entergy Texas was awarded an approximately $200 million Texas Energy Fund grant for electric reliability, which will strengthen the grid at no cost to customers. River Bend Station nuclear plant celebrated 40 years of producing clean, reliable electricity. Entergy's nuclear team received four Top Innovative Practice awards from the Nuclear Energy Institute. Entergy was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the U.S. Consolidated earnings (GAAP and non-GAAP measures)

Second quarter and year-to-date 2026 vs. 2025 
(See Appendix A for reconciliation of GAAP to non-GAAP measures and details on adjustments)

Second quarter

Year-to-date

2026

2025

Change

2026

2025

Change

(After-tax, $ in millions)

As-reported earnings

483

468

15

868

829

39

Less adjustments

-

-

-

(14)

-

(14)

Adjusted earnings (non-GAAP)

483

468

15

881

829

52

  Estimated weather impact

3

38

(35)

(7)

60

(67)

(After-tax, per share in $)

As-reported earnings

1.03

1.05

(0.01)

1.87

1.87

-

Less adjustments

-

-

-

(0.03)

-

(0.03)

Adjusted earnings (non-GAAP)

1.03

1.05

(0.01)

1.90

1.87

0.03

  Estimated weather impact

0.01

0.08

(0.08)

(0.02)

0.14

(0.15)

Calculations may differ due to rounding

Consolidated results

For second quarter 2026, the company reported earnings of $483 million, or $1.03 per share, on an
as-reported and an adjusted basis. This compared to second quarter 2025 earnings of $468 million, or $1.05 per share, on an as-reported and an adjusted basis.

Summary discussions of results by business follow. Additional details, including information on operating cash flow by business, are provided in Appendix A. Appendix B provides a more detailed analysis of earnings per share variances by business.

Business results

Utility

For second quarter 2026, the Utility business reported earnings attributable to Entergy Corporation of $626 million, or $1.34 per share, on an as-reported and an adjusted basis. This compared to second quarter 2025 earnings of $599 million, or $1.34 per share, on an as-reported and an adjusted basis.

The primary drivers for the quarter's earnings increase included:

the net effect of regulatory actions across several operating companies; return on construction work in progress for certain utility plant investments; higher retail sales volume; and higher other income (deductions). These drivers were partially offset by higher interest expense, higher O&M, and higher depreciation and amortization.

On a per share basis, second quarter 2026 results reflected higher diluted average number of common shares outstanding primarily due to the settlement of equity forwards in 2025 and 2026 as well as the dilutive effect of an increase in the stock price on unsettled equity forwards.

Appendix C contains additional details on Utility operating and financial measures.

Parent & Other

For second quarter 2026, Parent & Other reported a loss attributable to Entergy Corporation of $(143 million), or (31) cents per share, on an as-reported and an adjusted basis. This compared to a second quarter 2025 loss of $(131 million), or (29) cents per share, on an as-reported and an adjusted basis.

The primary driver for the quarter-over-quarter change was higher interest expense.

On a per share basis, second quarter 2026 results reflected higher diluted average number of common shares outstanding (see details in Utility section).

Earnings per share guidance

Entergy affirmed its 2026 adjusted earnings per share guidance range of $4.25 to $4.45. See the earnings call presentation for additional details.

The company has provided 2026 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described in the "Non-GAAP financial measures" section. The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include, among other things, certain significant income tax items, certain items recorded as a result of regulatory settlements or decisions, and certain unusual costs or expenses.

Earnings teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 29, 2026, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at investors.entergy.com/investors/events-and-presentations or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The earnings call presentation is also being posted to Entergy's website concurrent with this news release. A replay of the teleconference will be available on Entergy's website at investors.entergy.com/investors/events-and-presentations and by telephone. The telephone replay will be available through Aug. 5, 2026, by dialing 800-770-2030, conference ID 9024832.

Entergy (NYSE: ETR) generates, transmits and distributes electricity to power life for more than 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. We're focused on keeping costs for our customers as low as possible while providing reliable energy that our communities count on. We're also investing in growth for the future with a more resilient, cleaner energy system that includes modern natural gas, nuclear and renewable energy generation. As a nationally recognized leader in sustainability and corporate citizenship, we deliver more than $100 million in economic benefits each year to the communities we serve through philanthropy, volunteerism and advocacy. Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. Learn more at Entergy.com and connect with @Entergy on social media.

Entergy Corporation's common stock is listed on the New York Stock Exchange and NYSE Texas under the symbol "ETR".

Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the earnings call presentation. Both documents are available on Entergy's Investor Relations website at investors.entergy.com/investors/events-and-presentations.

Entergy maintains a web page as part of its Investor Relations website entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.

Non-GAAP financial measures

This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Entergy reports earnings using the non-GAAP measure of adjusted earnings, which excludes the effect of certain "adjustments". Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant income tax items, certain items recorded as a result of regulatory settlements or decisions, and certain unusual costs or expenses. In addition to reporting GAAP earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, owners, and analysts; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted ROE, adjusted ROE excluding affiliate preferred, FFO to adjusted debt, gross liquidity, net liquidity, adjusted Parent debt to total adjusted debt, adjusted debt to adjusted capitalization, and adjusted net debt to adjusted net capitalization are measures Entergy uses internally for management and board of directors discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. These metrics are defined in Appendix E.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Cautionary note regarding forward-looking statements

This news release contains certain "forward-looking statements" within the meaning of federal securities laws that are subject to risks and uncertainties. Such statements include, among other things, statements regarding Entergy's 2026 adjusted earnings per share guidance and capital plan; financial and operational outlooks and expected industrial sales; industrial load growth outlooks; statements regarding its resilience plans, goals, beliefs, or expectations; and other statements of Entergy's plans, beliefs, or expectations within this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K and any subsequent public filings with the Securities and Exchange Commission; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including (1) strategic transactions that Entergy or its subsidiaries may undertake and the risks that any such transaction may not be completed as and when expected or the anticipated benefits may not be realized, and (2) Entergy's ability to meet the rapidly growing demand for electricity, including from large-scale data centers and other large customers, and to manage the impacts of such growth on customers and its business, or the risk that contracted or expected load growth does not materialize or is not sustained; (h) risks and uncertainties associated with the resolution of pending or future applications, regulatory proceedings, litigation or governmental official actions relating to generation, transmission, or other facilities and the effect of related public and political opposition, including, in each case, those relating to any facilities designed to serve large-scale data centers; (i) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (j) effects on Entergy or its customers of (1) changes in federal, state, or local laws and regulations and other governmental actions or policies, such as changes in monetary, fiscal, trade, tax, environmental, or energy (including, among other things, data center energy use, efficiency standards, and sources of power) policies, as well as changes in utility regulations, including those relating to new projects designed to serve the increased load growth of large-scale data centers and other large customers; (2) changes in commodity markets, capital markets, or economic conditions; and (3) technological change, including the costs, pace of development, and commercialization of new and emerging technologies.

Second quarter 2026 earnings release appendices and financial statements

Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations

Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements

A: Consolidated results and adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).

Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures
Second quarter and year-to-date 2026 vs. 2025 (See Appendix A-2 and Appendix A-3 for details on adjustments)

Second quarter

Year-to-date

2026

2025

Change

2026

2025

Change

(After-tax, $ in millions)

As-reported earnings (loss)

Utility

626

599

27

1,166

1,089

77

Parent & Other

(143)

(131)

(12)

(298)

(260)

(38)

Consolidated

483

468

15

868

829

39

Less adjustments

Utility

-

-

-

-

-

-

Parent & Other

-

-

-

(14)

-

(14)

Consolidated

-

-

-

(14)

-

(14)

Adjusted earnings (loss) (non-GAAP)

Utility

626

599

27

1,166

1,089

77

Parent & Other

(143)

(131)

(12)

(284)

(260)

(25)

Consolidated

483

468

15

881

829

52

Estimated weather impact

3

38

(35)

(7)

60

(67)

Diluted average number of common shares outstanding (in millions)

466

446

21

464

443

21

(After-tax, per share in $) (a)

As-reported earnings (loss)

Utility

1.34

1.34

-

2.51

2.45

0.06

Parent & Other

(0.31)

(0.29)

(0.01)

(0.64)

(0.59)

(0.06)

Consolidated

1.03

1.05

(0.01)

1.87

1.87

-

Less adjustments

Utility

-

-

-

-

-

-

Parent & Other

-

-

-

(0.03)

-

(0.03)

Consolidated

-

-

-

(0.03)

-

(0.03)

Adjusted earnings (loss) (non-GAAP)

Utility

1.34

1.34

-

2.51

2.45

0.06

Parent & Other

(0.31)

(0.29)

(0.01)

(0.61)

(0.59)

(0.03)

Consolidated

1.03

1.05

(0.01)

1.90

1.87

0.03

Estimated weather impact

0.01

0.08

(0.08)

(0.02)

0.14

(0.15)

Calculations may differ due to rounding

(a)

Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. 

See Appendix B for detailed earnings variance analysis.

Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure. 

Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS)

Second quarter and year-to-date 2026 vs. 2025

Second quarter

Year-to-date

2026

2025

Change

2026

2025

Change

(Pre-tax except for income tax effect and totals; $ in millions)

Parent & Other

1Q26 impairment related to the expected sale of a non-utility business interest in Independence power plant

-

-

-

(18)

-

(18)

Income tax effect on Parent & Other adjustment above

-

-

-

4

-

4

Total Parent and Other

-

-

-

(14)

-

(14)

Total adjustments

-

-

-

(14)

-

(14)

(After-tax, per share in $) (b)

Parent & Other

1Q26 impairment related to the expected sale of a non-utility business interest in Independence power plant

-

-

-

(0.03)

-

(0.03)

Total Parent & Other

-

-

-

(0.03)

-

(0.03)

Total adjustments

-

-

-

(0.03)

-

(0.03)

Calculations may differ due to rounding

(b)

Per share amounts are calculated by multiplying the corresponding earnings (loss) by the income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period.

Appendix A-3: Adjustments by income statement line item (shown as positive/ (negative) impact on earnings)

Second quarter and year-to-date 2026 vs. 2025

(Pre-tax except for income taxes and totals; $ in millions)

Second quarter

Year-to-date

2026

2025

Change

2026

2025

Change

Parent & Other

  Asset write-offs, impairments, and related charges

-

-

-

(18)

-

(18)

  Income taxes

-

-

-

4

-

4

Total Parent & Other

-

-

-

(14)

-

(14)

Total adjustments

-

-

-

(14)

-

(14)

Calculations may differ due to rounding 

Appendix A-4 provides a comparative summary of OCF by business. 

Appendix A-4: Consolidated operating cash flow

Second quarter and year-to-date 2026 vs. 2025

($ in millions)

Second quarter

Year-to-date

2026

2025

Change

2026

2025

Change

Utility

2,021

1,371

650

2,891

1,937

954

Parent & Other

(128)

(110)

(18)

(169)

(139)

(30)

Consolidated

1,893

1,262

631

2,722

1,798

924

Calculations may differ due to rounding

Second quarter 2026 OCF increased primarily due to higher receipts of advance payments related to customer agreements, higher collections from Utility customers, and lower fuel and purchased power payments. These increases were partially offset by the timing of payments to vendors and higher interest payments.

B: Earnings variance analysis  
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2026 versus 2025 as-reported and adjusted earnings per share variances.

Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d)

Second quarter 2026 vs. 2025

(After-tax, per share in $)

Utility

Parent & Other

Consolidated

As-

reported

Adjusted

As-

reported

Adjusted

As-

reported

Adjusted

2025 earnings (loss)

1.34

1.34

(0.29)

(0.29)

1.05

1.05

Operating revenue less:
fuel, fuel-related exp. and gas purch. for resale; purch. power; and other reg. chgs. (credits) – net

0.18

0.18

(e)

-

-

0.18

0.18

Nuclear refueling outage expenses

-

-

-

-

-

-

Other O&M

(0.08)

(0.08)

(f)

-

-

(0.08)

(0.08)

Asset write-offs, impairments, and related charges

-

-

-

-

-

-

Decommissioning

(0.01)

(0.01)

-

-

-

-

Taxes other than income taxes

(0.02)

(0.02)

-

-

(0.02)

(0.02)

Depreciation and amortization

(0.05)

(0.05)

(g)

-

-

(0.04)

(0.04)

Other income (deductions)

0.13

0.13

(h)

0.01

0.01

0.15

0.15

Interest expense

(0.11)

(0.11)

(i)

(0.04)

(0.04)

(j)

(0.15)

(0.15)

Income taxes – other

0.01

0.01

-

-

-

-

Preferred dividend requirements and noncontrolling interests

-

-

-

-

-

-

Share effect

(0.06)

(0.06)

0.01

0.01

(0.05)

(0.05)

(k)

2026 earnings (loss)

1.34

1.34

(0.31)

(0.31)

1.03

1.03

Calculations may differ due to rounding

Appendix B-2: As-reported and adjusted earnings per share variance analysis (c), (d)

Year-to-date 2026 vs. 2025

(After-tax, per share in $)

Utility

Parent & Other

Consolidated

As-

reported

Adjusted

As-

reported

Adjusted

As-

reported

Adjusted

2025 earnings (loss)

2.45

2.45

(0.59)

(0.59)

1.87

1.87

Operating revenue less:
fuel, fuel-related exp. and gas purch. for resale; purch. power; and other reg. chgs. (credits) – net

0.07

0.07

(e)

-

-

0.07

0.07

Nuclear refueling outage expenses

0.02

0.02

-

-

0.02

0.02

Other O&M

(0.08)

(0.08)

(f)

-

-

(0.08)

(0.08)

Asset write-offs, impairments, and related charges

-

-

(0.03)

-

(l)

(0.03)

-

Decommissioning

(0.01)

(0.01)

-

-

(0.01)

(0.01)

Taxes other than income taxes

(0.04)

(0.04)

(m)

-

-

(0.04)

(0.04)

Depreciation and amortization

(0.09)

(0.09)

(g)

-

-

(0.09)

(0.09)

Other income (deductions)

0.46

0.46

(h)

0.01

0.01

0.48

0.48

Interest expense

(0.18)

(0.18)

(i)

(0.06)

(0.06)

(j)

(0.24)

(0.24)

Income taxes – other

0.02

0.02

-

-

0.02

0.02

Preferred dividend requirements and noncontrolling interests

(0.01)

(0.01)

-

-

(0.01)

(0.01)

Share effect

(0.12)

(0.12)

0.03

0.03

(0.09)

(0.09)

(k)

2026 earnings (loss)

2.51

2.51

(0.64)

(0.61)

1.87

1.90

Calculations may differ due to rounding

(c)

Utility operating revenue and Utility income taxes – other variances exclude the following for the return/collection of excess/deficient unprotected ADIT (net effect was neutral to earnings) ($ in millions):

2Q26

2Q25

YTD26

YTD25

Utility operating revenue

(13)

(4)

(28)

(6)

Utility income taxes – other

13

4

28

6

(d)

EPS effects of individual income statement line item variances are calculated by multiplying the pre-tax amount by the income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes – other represents income tax differences other than the income tax effect of individual line-item variances. Share effect captures the per share impact from the change in diluted average number of common shares outstanding.

Utility as-reported operating revenue less fuel, fuel-related
expenses and gas purchased for resale; purchased power;

and other regulatory charges (credits) – net variance analysis
2026 vs. 2025 ($ EPS)

2Q

YTD

Electric volume / weather

0.04

0.03

Retail electric price

0.15

0.32

Return on CWIP for certain utility plant investments

0.07

0.12

E-TX MISO capacity costs

0.03

0.03

Sale of natural gas LDCs

(0.04)

(0.11)

Reg. provisions for decommissioning items

(0.07)

(0.36)

Other

0.02

0.05

Total

0.18

0.07

(e)

The second quarter and year-to-date earnings increases reflected the effect of rate actions including: E-AR's FRP, E-AR's Generating Arkansas Jobs Act Rider, E-LA's FRP (including FRP riders), E-LA's RPCR, E-MS's FRP interim facilities rate adjustment, and E-TX's DCRF. 2026 results included higher revenue related to the amortization of certain customer advances designed to provide a return on CWIP for certain utility plant investments, which is recognized as the related costs are incurred. The increases also reflected higher electric volume, including the effects of weather, as well as second quarter 2025 MISO capacity costs at E-TX prior to the implementation of a new capacity cost rider, which was effective June 2026. The increases were partially offset by the absence of revenues and gas purchase for resale from the natural gas LDC businesses that were sold in July 2025. Changes in regulatory provisions for decommissioning items was also a driver (based on regulatory treatment, decommissioning-related variances are offset in other line items and are largely earnings neutral). The year-to-date increase also included the effects of E-MS's grid modernization rider.

(f)

The second quarter earnings decrease from higher Utility other O&M was primarily due to an increase in power delivery expenses driven by higher vegetation maintenance costs, as well as higher compensation and benefits costs resulting from higher healthcare claims activity and the timing of the recognition of prescription drug rebates. The second quarter decrease was partially offset by lower bad debt expense. The year-to-date earnings decrease from higher Utility other O&M was primarily due to an increase in power delivery expenses driven by higher vegetation maintenance costs, a higher scope of work performed in 2026 as compared to 2025, and increased labor costs. The year-to-date decrease also reflected higher compensation and benefits, primarily due to a revision to estimated incentive-based compensation expense in 2025. The year-to-date decrease was partially offset by higher nuclear insurance refunds, lower gas operation expenses resulting from the sale of natural gas LDC businesses, and decreases in loss provisions and bad debt expense.

(g)

The second quarter and year-to-date earnings decreases from higher Utility depreciation and amortization were primarily due to higher plant in service. The decreases also reflected higher FERC jurisdictional depreciation rates at E-AR and
E -LA effective Jan. 2026, and an increase in E-LA's nuclear depreciation rates effective Sept. 2025. 

(h)

The second quarter and year-to-date earnings increases from higher Utility other income (deductions) included changes in nuclear decommissioning trust returns, including portfolio rebalancing in 2026 (based on regulatory treatment, decommissioning-related variances are offset in other line items and are largely earnings neutral). The increases also reflected higher amortization of tax gross ups on customer advances, including customer advances for construction as well as higher external interest income. The increases were partially offset by a true-up of E-LA's MISO cost recovery mechanism.

(i)

The second quarter and year-to-date earnings decreases from higher Utility interest expense were primarily due to higher debt balances, a higher average interest rate, and higher carrying costs on customer advances. The year-to-date decrease also reflected 2026 carrying costs on retained net proceeds from the monetization of nuclear production tax credits. 

(j)

The second quarter and year-to-date earnings decreases from higher Parent & Other interest expense were primarily due to the issuance of $1.3 billion of junior subordinated debentures in Nov. 2025. 

(k)

The second quarter and year-to-date earnings per share decreases from share effect were due to higher diluted average number of common shares outstanding.  The increases in shares outstanding were primarily due to the settlement of equity forwards in Oct. 2025, Feb. 2026, and June 2026 and the dilutive effect of an increase in the stock price on unsettled equity forwards.

(l)

The year-to-date as-reported earnings decrease from higher Parent & Other asset write-offs, impairments, and related charges was due to a first quarter 2026 $(18 million) ($(14 million) after tax) non-cash impairment related to the expected sale of a non-utility business interest in the Independence power plant (considered an adjustment and excluded from adjusted earnings).

(m)

The year-to-date earnings decrease from higher Utility taxes other than income taxes was primarily due to increases in ad valorem taxes resulting from higher assessments and millage rate increases.

C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.

Appendix C: Utility operating and financial measures

Second quarter and year-to-date 2026 vs. 2025

Second quarter

Year-to-date

2026

2025

%
change

% weather
adj. (n)

2026

2025

%
change

% weather
adj. (n)

GWh sold

Residential

8,736

8,899

(1.8)

2.8

16,792

17,683

(5.0)

(0.2)

Commercial

7,208

7,265

(0.8)

0.3

13,437

13,507

(0.5)

(0.1)

Governmental

617

617

-

1.6

1,172

1,176

(0.3)

0.3

Industrial

17,164

15,620

9.9

9.9

33,060

29,452

12.3

12.3

Total retail

33,725

32,401

4.1

5.7

64,461

61,818

4.3

5.9

Wholesale

3,338

4,133

(19.2)

6,127

5,767

6.2

Total

37,063

36,534

1.4

70,588

67,585

4.4

Number of electric retail customers

Residential

2,637,865

2,608,472

1.1

Commercial

374,149

371,699

0.7

Governmental

19,105

18,008

6.1

Industrial

39,892

41,227

(3.2)

Total

3,071,011

3,039,406

1.0

Other O&M and nuclear refueling outage exp. per MWh

$21.24

$20.33

4.4

$20.88

$21.28

(1.9)

Calculations may differ due to rounding

(n)

The effects of weather were estimated using hourly heating degree days and cooling degree days for the period from various locations and comparing to a "normal" temperature range for each jurisdiction based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

For the quarter, weather-adjusted retail sales increased 5.7 percent. The increase was primarily due to a 9.9 percent increase in industrial volume driven by higher sales to data center, primary metals, and chlor-alkali customers. Residential sales were 2.8 percent higher.

D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.

Appendix D: GAAP and non-GAAP financial measures

2026 vs. 2025 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending June 30

2026

2025

Change

GAAP measure

  As-reported ROE

10.4 %

11.4 %

(1) %

Non-GAAP financial measure

  Adjusted ROE

10.5 %

11.5 %

(1) %

As of June 30 ($ in millions, except where noted)

2026

2025

Change

GAAP measures

  Cash and cash equivalents

3,854

1,176

2,678

  Available revolver capacity

4,346

4,345

1

  Commercial paper

1,544

459

1,085

  Total debt

34,749

30,522

4,227

  Junior subordinated debentures

2,500

1,200

1,300

  Securitization debt

213

230

(17)

  Total debt to total capital

65 %

65 %

-

   Storm escrows

314

303

11

Non-GAAP financial measures ($ in millions, except where noted)

  FFO to adjusted debt

15.8 %

15.1 %

0.7 %

  Adjusted debt to adjusted capitalization

63 %

63 %

-

  Adjusted net debt to adjusted net capitalization

60 %

62 %

(2) %

  Gross liquidity

8,200

5,521

2,679

  Net liquidity

10,026

7,631

2,395

  Adjusted Parent debt to total adjusted debt

18 %

17 %

1 %

  Build-to-suit lease agreement (o)

1,450

-

1,450

Calculations may differ due to rounding

(o)

Maximum counterparty commitment; see Form 10-K for the fiscal year ended Dec. 2025 for additional details.

E: Definitions and abbreviations and acronyms 
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix E-1: Definitions

Utility operating and financial measures

Number of electric retail customers

Average number of electric customers over the period

Other O&M and refueling outage expense per MWh

Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales

Financial measures – GAAP

As-reported ROE

Last twelve months net income attributable to Entergy Corp. divided by average common equity

Available revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Securitization debt

Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections

Total capitalization

Total debt plus subsidiaries' preferred stock without sinking fund plus total equity

Total debt

Sum of short-term and long-term debt, notes payable, and commercial paper

Total debt to total capitalization

Total debt divided by total capitalization

Financial measures – non-GAAP

Adjusted capitalization

Total capitalization excluding securitization debt

Adjusted debt

Total debt excluding securitization debt and 50% of junior subordinated debentures

Adjusted debt to adjusted capitalization

Adjusted debt divided by adjusted capitalization

Adjusted earnings (loss)

As-reported earnings (loss) minus adjustments

Adjusted EPS

Adjusted earnings (loss) divided by the diluted average number of common shares outstanding

Adjusted net capitalization

Adjusted capitalization minus cash and cash equivalents

Adjusted net debt

Adjusted debt minus cash and cash equivalents

Adjusted net debt to adjusted net capitalization

Adjusted net debt divided by adjusted net capitalization

Adjusted Parent debt

Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities plus unamortized debt issuance costs and discounts minus 50% of junior subordinated debentures

Adjusted Parent debt to total adjusted debt

Adjusted Parent debt divided by consolidated adjusted debt

Adjusted ROE

Last twelve months adjusted earnings divided by average common equity

Adjusted ROE excluding affiliate preferred

Last twelve months adjusted earnings, excluding dividend income from affiliate preferred as well as the after-tax cost of debt financing for preferred investment, divided by average common equity adjusted to exclude the estimated equity associated with the affiliate preferred investment

Adjustments

Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant income tax items, certain items recorded as a result of regulatory settlements or decisions, and certain unusual costs or expenses

FFO

Last twelve months OCF minus preferred dividend requirements of subsidiaries, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, deferred fuel costs, customer advances – current, and other working capital accounts), 50% of interest on junior subordinated debentures, and securitization regulatory charges

FFO to adjusted debt

Last twelve months FFO divided by end of period adjusted debt

Gross liquidity

Sum of cash and cash equivalents plus available revolver capacity

Net liquidity

Sum of cash and cash equivalents, available revolver capacity, escrow accounts available for certain storm expenses, and equity sold forward but not yet settled minus commercial paper

Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix E-2: Abbreviations and acronyms

A&G

ACM

ADIT

AFUDC

APSC

BESS

CAGR

CCCT

CCNO

CFO

COD

CT

CWIP

DCRF

DRM

E-AR

E-LA

E-MS

E-NO

E-TX

EPS

ETR

FFO

FRP

GAAP

GCRR

GGO

Grand Gulf or GGNS

Independence

LDC

Administrative and general expenses

Additional Capacity Mechanism

Accumulated deferred income taxes

Allowance for funds used during construction

Arkansas Public Service Commission

Battery and energy storage system

Compound annual growth rate

Combined cycle combustion turbine

Council of the City of New Orleans

Cash from operations

Commercial operation date

Combustion turbine

Construction work in progress

Distribution Cost Recovery Factor

Distribution Recovery Mechanism

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

Earnings per share

Entergy Corporation

Funds from operations

Formula rate plan

U.S. generally accepted accounting principles

Generation Cost Recovery Rider

Geaux Green Option

Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI

Independence Steam Electric Station

Local distribution company

LPSC

LTM

MCRM

MISO

Moody's

MPSC

NDT

NYSE

O&M

OCAPS

OCF

OpCo

Other O&M

P&O

PMR

PPA
PUCT

RECs

RSHCR

ROE

RPCR

S&P

SEC

SERI

TAM

TCRF

TRM

VMR

WACC

Louisiana Public Service Commission

Last twelve months

MISO Cost Recovery Mechanism

Midcontinent Independent System Operator, Inc.

Moody's Ratings

Mississippi Public Service Commission

Nuclear decommissioning trust

New York Stock Exchange

Operation and maintenance

Orange County Advanced Power Station (CCCT)

Net cash flow provided by operating activities

Utility operating company

Other operation and maintenance expense

Parent & Other

Performance Management Rider

Power purchase agreement or purchased power agreement

Public Utility Commission of Texas

Renewable energy certificates

Resilience and Storm Hardening Cost Recovery

Return on equity

Resilience Plan Cost Recovery Rider

Standard & Poor's

U.S. Securities and Exchange Commission

System Energy Resources, Inc.

Tax Adjustment Mechanism

Transmission Cost Recovery Factor

Transmission Recovery Mechanism

Vegetation management rider

Weighted average cost of capital

F: Other GAAP to non-GAAP reconciliations
Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.

Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE

(LTM $ in millions except where noted)

Second quarter

2026

2025

As-reported net income attributable to Entergy Corporation

(A)

1,797

1,760

Adjustments

(B)

(14)

(5)

Adjusted earnings (non-GAAP)

(C)=(A-B)

1,811

1,765

Average common equity (average of beginning and ending balances)

(D)

17,221

15,390

As-reported ROE

(A/D)

10.4 %

11.4 %

Adjusted ROE (non-GAAP)

(C/D)

10.5 %

11.5 %

 Calculations may differ due to rounding

Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – FFO to adjusted debt

($ in millions except where noted)

Second quarter

2026

2025

Total debt

(A)

34,749

30,522

Securitization debt

(B)

213

230

50% junior subordinated debentures

(C)

1,250

600

Adjusted debt (non-GAAP)

(D)=(A-B-C)

33,286

29,692

Net cash flow provided by operating activities, LTM

(E)

6,075

4,740

Preferred dividend requirements of subsidiaries, LTM

(F)

(18)

(18)

50% of the interest expense associated with junior subordinated debentures, LTM

(G)

(68)

(43)

Working capital items in net cash flow provided by operating activities, LTM:

Receivables

(30)

(84)

Fuel inventory

38

(1)

Accounts payable

226

208

Taxes accrued

69

18

Interest accrued

49

45

Deferred fuel costs

(139)

(216)

Customer advances – current

918

455

Other working capital accounts

(244)

(109)

Securitization regulatory charges, LTM

18

17

Total

(H)

904

332

FFO, LTM (non-GAAP)

(I)=(E-F-G-H)

5,257

4,469

FFO to adjusted debt (non-GAAP)

(I/D)

15.8 %

15.1 %

Calculations may differ due to rounding

Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – adjusted debt ratios; gross liquidity; and net liquidity

($ in millions except where noted)

Second quarter

2026

2025

Total debt

(A)

34,749

30,522

Securitization debt

(B)

213

230

50% junior subordinated debentures

(C)

1,250

600

Adjusted debt (non-GAAP)

(D)=(A-B-C)

33,286

29,692

Cash and cash equivalents

(E)

3,854

1,176

Adjusted net debt (non-GAAP)

(F)=(D-E)

29,432

28,516

Commercial paper

(G)

1,544

459

Total capitalization

(H)

53,289

47,050

Securitization debt

(B)

213

230

Adjusted capitalization (non-GAAP)

(I)=(H-B)

53,076

46,820

Cash and cash equivalents

(E)

3,854

1,176

Adjusted net capitalization (non-GAAP)

(J)=(I-E)

49,222

45,644

Total debt to total capitalization

(A/H)

65 %

65 %

Adjusted debt to adjusted capitalization (non-GAAP)

(D/I)

63 %

63 %

Adjusted net debt to adjusted net capitalization (non-GAAP)

(F/J)

60 %

62 %

Available revolver capacity

(K)

4,346

4,345

Storm escrows

(L)

314

303

Equity sold forward, not yet settled (p)

(M)

3,056

2,266

Gross liquidity (non-GAAP)

(N)=(E+K)

8,200

5,521

Net liquidity (non-GAAP)

(N-G+L+M)

10,026

7,631

Entergy Corporation notes:

Due September 2025

-

800

Due September 2026

750

750

Due June 2028

650

650

Due June 2030

600

600

Due June 2031

650

650

Due June 2050

600

600

Junior subordinated debentures due Dec. 2054

1200

1,200

Junior subordinated debentures due June 2056

700

-

Junior subordinated debentures due June 2056

600

-

Total Parent long-term debt

(O)

5,750

5,250

Revolver drawn

(P)

-

-

Unamortized debt issuance costs and discounts

(Q)

(53)

(42)

Total Parent debt

(R)=(G+O+P+Q)

7,242

5,667

Adjusted Parent debt (non-GAAP)

(S)=(R-C)

5,992

5,067

Adjusted Parent debt to total adjusted debt (non-GAAP)

(S/D)

18 %

17 %

Calculations may differ due to rounding

(p)

Reflects adjustments, including for common dividends between contracting and settlement.

SOURCE Entergy Corporation

, /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated net sales of $5.442 billion during the second quarter of 2026, growing 7.5 percent on a reported basis and 7.0 percent on an operational1 and organic2 basis, all compared to the prior year period. The company reported GAAP net income attributable to Boston Scientific common stockholders of $907 million or $0.61 per share (EPS), compared to $797 million or $0.53 per share a year ago, and achieved adjusted3 EPS of $0.86 for the period, compared to $0.75 a year ago.

"Our team delivered a solid quarter while continuing to navigate a dynamic environment," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We are focused on disciplined execution and prioritizing investments in our highest-impact opportunities, and we remain confident in Boston Scientific's long-term growth, anchored by our category leadership strategy and our commitment to meaningful innovation for patients and physicians."

Second quarter financial results and recent developments:

Reported net sales of $5.442 billion, representing an increase of 7.5 percent on a reported basis, compared to the company's guidance range of 5.5 to 7.5 percent; and 7.0 percent on an operational and organic basis, compared to the company's guidance range of 5 to 7 percent, all compared to the prior year period. Reported GAAP net income attributable to Boston Scientific common stockholders of $0.61 per share, and achieved adjusted EPS of $0.86 per share, compared to the guidance range of $0.82 to $0.84 per share. Achieved the following net sales growth in each reportable segment, compared to the prior year period: MedSurg: 5.9 percent reported, 5.4 percent operational and organic Cardiovascular: 8.3 percent reported, 7.8 percent operational and organic Achieved the following net sales growth in each region, compared to the prior year period: United States (U.S.): 6.2 percent reported and operational Europe, Middle East and Africa (EMEA): 6.1 percent reported and 4.2 percent operational Asia-Pacific (APAC): 11.2 percent reported and operational Latin America and Canada (LACA): 22.4 percent reported and 16.2 percent operational Completed the previously announced $2 billion accelerated share repurchase program, repurchasing approximately 40 million shares. Invested $1.5 billion in MiRus LLC, which is developing and commercializing proprietary biomaterials, implants and procedural solutions for the treatment of cardiovascular and orthopedic diseases, including the SIEGEL™ Balloon Expandable Transcatheter Aortic Valve Replacement (TAVR) system, in return for an approximately 34% equity stake and exclusive option to acquire the MiRus TAVR business.4 Presented late-breaking findings at EuroPCR from the FRACTURE Investigational Device Exemption trial, which met its primary endpoints with the SEISMIQ™ 4CE Coronary Intravascular Lithotripsy Catheter, demonstrating high rates of freedom from major adverse cardiac events at 30 days as well as procedural success in patients with severely calcified coronary artery disease.4 Announced clinical trial results that were presented in late-breaking sessions at Heart Rhythm 2026 including: The AVANT GUARD study of FARAPULSE™ Pulsed Field Ablation (PFA) for the treatment of persistent atrial fibrillation (AF) in patients who had not previously been treated for their condition. Data met all safety and effectiveness endpoints and demonstrated statistical superiority of FARAPULSE PFA over anti-arrhythmic drugs with significantly higher primary effectiveness. The ELEVATE-PF feasibility study of the FARAFLEX™ Mapping and PFA Catheter — a novel large focal, high-density map-and-ablate catheter — in patients with paroxysmal and persistent AF. The trial demonstrated strong lesion durability validated by cardiac remapping, with no reported cases of pulmonary vein stenosis, hemolysis, coronary spasm or clinical stroke.4  Commenced enrollment in the pivotal FARADIGM clinical trial to evaluate the safety and effectiveness of the FARAFLEX Mapping and PFA Catheter for treating patients with paroxysmal and persistent AF.4  Received U.S. Food and Drug Administration 510(k) clearance for the TruSelect™ 2.6 Microcatheter, expanding Boston Scientific's embolization portfolio with a device designed to provide physicians with a single solution for navigation and efficient embolic delivery during minimally invasive procedures. 1.

Operational net sales growth excludes the impact of foreign currency fluctuations.

2.

Organic net sales growth excludes the impact of foreign currency fluctuations and net sales attributable to certain acquisitions and divestitures for which there are less than a full period of comparable net sales.

3.

Adjusted EPS excludes the impact of certain charges (credits) as defined below within the "Use of Non-GAAP Financial Measures" section.

4.

The SIEGEL Balloon Expandable TAVR system, the SEISMIQ 4CE Coronary Intravascular Lithotripsy Catheter and the FARAFLEX Mapping and PFA Catheter are investigational devices. Limited by Federal (or U.S.) law to investigational use only. Not available for sale.

Net sales for the second quarter by business and region:

Increase/(Decrease)

          Three Months Ended          

          June 30,          

Reported
Basis

Impact of
Foreign
Currency
Fluctuations

Operational

 Basis

Impact of
Certain
Acquisitions
/Divestitures

Organic
Basis

(in millions)

2026

2025

   Endoscopy

$      793

$      737

7.6 %

(0.7) %

7.0 %

— %

7.0 %

   Urology

684

676

1.1 %

(0.3) %

0.8 %

— %

0.8 %

   Neuromodulation                                      

341

303

12.7 %

(0.6) %

12.2 %

— %

12.2 %

MedSurg

1,818

1,716

5.9 %

(0.5) %

5.4 %

— %

5.4 %

Cardiovascular

3,624

3,345

8.3 %

(0.6) %

7.8 %

— %

7.8 %

Net Sales

$    5,442

$    5,061

7.5 %

(0.5) %

7.0 %

— %

7.0 %

Increase/(Decrease)

          Three Months Ended          

          June 30,          

Reported
Basis

Impact of
Foreign
Currency
Fluctuations

Operational

 Basis

(in millions)

2026

2025

U.S.

$     3,426

$     3,224

6.2 %

— %

6.2 %

EMEA

932

878

6.1 %

(1.9) %

4.2 %

APAC

878

790

11.2 %

(0.0) %

11.2 %

LACA

206

169

22.4 %

(6.2) %

16.2 %

Net Sales

$    5,442

$    5,061

7.5 %

(0.5) %

7.0 %

Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.

Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of certain acquisitions/divestitures are not           
prepared in accordance with U.S. GAAP.

Guidance for Full Year and Third Quarter 2026

The company now estimates net sales growth for the full year 2026, versus the prior year period, to be approximately 5.5 to 6.5 percent on a reported basis and 5 to 6 percent on an organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to certain acquisitions and divestitures for which there are less than a full period of comparable net sales. The company now estimates adjusted EPS, excluding certain charges (credits), of $3.28 to $3.32.

The company estimates net sales growth for the third quarter of 2026, versus the prior year period, to be approximately 3 to 5 percent on a reported and organic basis. Third quarter organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to certain acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates adjusted EPS, excluding certain charges (credits), of $0.80 to $0.82.

The company has not provided reconciliations of the forward-looking adjusted EPS guidance to GAAP guidance as it is unable to predict with reasonable certainty and without unreasonable efforts the impact of certain items such as intangible asset impairment charges, acquisition-related charges, restructuring and restructuring-related charges and litigation-related charges. The combined impact of these items is uncertain, dependent on various factors and cannot be predicted with reasonable certainty, and could be material to our GAAP measures of financial results.

Conference Call Information

Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET. The company will webcast the call to interested parties through its website: investors.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for approximately one year on the Boston Scientific website.

About Boston Scientific

Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 45 years, we advance science for life by providing a broad range of high-performance solutions that address unmet patient needs and reduce the cost of healthcare. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and follow us on LinkedIn.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales; reported, operational and organic revenue growth rates; adjusted EPS for the third quarter and full year 2026; our financial performance; acquisitions; clinical trials; our business plans and product performance; and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Risks and uncertainties that may cause such differences include, among other things: economic conditions, including the impact of foreign currency fluctuations; future U.S. and global political, competitive, reimbursement and regulatory conditions, including changing trade and tariff policies; geopolitical conflicts and tensions; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by public health emergencies or extreme weather or other climate change-related events; labor shortages and increases in labor costs; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions; expected procedural volumes; the closing and integration of acquisitions; demographic trends; intellectual property; litigation; financial market conditions; the execution and effect of our business strategy, including our cost-savings and growth initiatives; and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements, except as required by law. This cautionary statement is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.

Use of Non-GAAP Financial Information

A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.

CONTACT:

‌          

Media:

Chanel Hastings

Investors:

Lauren Tengler

508-382-0288 (office)

508-683-4479 (office)

Media Relations

Investor Relations

Boston Scientific Corporation

Boston Scientific Corporation

[email protected]

[email protected]

BOSTON SCIENTIFIC CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

          Three Months Ended          

          June 30,          

‌

          Six Months Ended          

          June 30,          

(in millions, except per share data)

2026

2025

2026

2025

Net sales

$      5,442

$      5,061

$     10,646

$      9,724

Cost of products sold (excluding amortization expense)

1,594

1,637

3,184

3,090

Gross profit

3,848

3,424

7,462

6,633

Operating expenses:

Selling, general and administrative expenses

1,803

1,716

3,583

3,312

Research and development expenses

554

526

1,069

969

Royalty expense

12

14

24

28

Amortization expense

233

225

466

444

Intangible asset impairment charges

—

46

—

46

Contingent consideration net expense (benefit)

(16)

(5)

(46)

0

Restructuring net charges (credits)

8

83

11

93

Litigation-related net charges (credits)

76

—

76

—

2,670

2,605

5,183

4,894

Operating income (loss)

1,178

819

2,279

1,740

Other income (expense):

Interest expense

(96)

(90)

(186)

(172)

Other, net

(23)

213

129

179

Income (loss) before income taxes

1,060

941

2,222

1,746

Income tax expense (benefit)

155

146

(21)

279

Net income (loss)

905

795

2,243

1,467

Net income (loss) attributable to noncontrolling interests

(2)

(2)

(4)

(4)

Net income (loss) attributable to Boston Scientific common stockholders                                        

$        907

$        797

$      2,247

$      1,471

Net income (loss) per common share - basic

$        0.62

$        0.54

$        1.52

$        0.99

Net income (loss) per common share - diluted

$        0.61

$        0.53

$        1.51

$        0.98

Weighted-average shares outstanding

Basic

1,470.2

1,479.9

1,477.6

1,478.5

Diluted

1,474.8

1,493.5

1,484.9

1,493.3

Amounts may not add due to rounding.

BOSTON SCIENTIFIC CORPORATION

NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS

(Unaudited)

Three Months Ended June 30, 2026

(in millions, except per share data)

Gross
Profit

Operating
Expenses

Operating
Income
(Loss)

Other
Income
(Expense)

Income
(Loss)
Before
Income
Taxes

Net
Income
(Loss)

Net Income
(Loss)
Attributable to
Noncontrolling
Interests

Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders

Impact
per
Share

Reported

$   3,848

$   2,670

$   1,178

$    (118)

$   1,060

$     905

$           (2)

$          907

$   0.61

Non-GAAP adjustments:

Amortization expense

—

(233)

233

—

233

206

2

203

0.14

Acquisition/divestiture-related net
charges/credits

30

(61)

91

1

92

72

—

72

0.05

Restructuring and restructuring-related net
charges/credits

25

(16)

42

—

42

37

—

37

0.02

Litigation-related net charges/credits

—

(76)

76

—

76

60

—

60

0.04

Investment portfolio net losses/gains and
impairments

—

—

—

(2)

(2)

(2)

—

(2)

(0.00)

EU MDR implementation costs

4

(3)

7

—

7

6

—

6

0.00

IEEPA tariff refund

(83)

—

(83)

—

(83)

(77)

—

(77)

(0.05)

Deferred tax expenses/benefits

—

—

—

—

—

70

—

70

0.05

Adjusted

$   3,824

$   2,281

$   1,543

$    (120)

$   1,423

$   1,275

$            1

$        1,275

$   0.86

Three Months Ended June 30, 2025

(in millions, except per share data)

Gross
Profit

Operating
Expenses

Operating
Income
(Loss)

Other
Income
(Expense)

Income
(Loss)
Before
Income
Taxes

Net
Income
(Loss)

Net Income
(Loss)
Attributable to
Noncontrolling
Interests

Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders

Impact
per
Share

Reported

$   3,424

$   2,605

$     819

$     122

$     941

$     795

$           (2)

$          797

$   0.53

Non-GAAP adjustments:

Amortization expense

—

(225)

225

—

225

193

2

191

0.13

Goodwill and other intangible asset impairment
charges

—

(46)

46

—

46

37

—

37

0.02

Acquisition/divestiture-related net
charges/credits

46

(92)

138

(230)

(92)

(92)

—

(92)

(0.06)

Restructuring and restructuring-related net
charges/credits

37

(124)

161

—

161

142

—

142

0.10

Investment portfolio net losses/gains and
impairments

—

—

—

(2)

(2)

(2)

—

(2)

(0.00)

EU MDR implementation costs

7

(3)

10

—

10

9

—

9

0.01

Deferred tax expenses/benefits

—

—

—

—

—

45

—

45

0.03

Discrete tax items

—

—

—

—

—

0

—

0

0.00

Adjusted

$   3,514

$   2,114

$   1,399

$    (110)

$   1,289

$   1,127

$            0

$        1,127

$   0.75

An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document.

Amounts may not add due to rounding.

BOSTON SCIENTIFIC CORPORATION

NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS

(Unaudited)

Six Months Ended June 30, 2026

(in millions, except per share data)

Gross
Profit

Operating
Expenses

Operating
Income
(Loss)

Other
Income
(Expense)

Income
(Loss)
Before
Income
Taxes

Net
Income
(Loss)

Net Income
(Loss)
Attributable to
Noncontrolling
Interests

Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders

Impact
per
Share

Reported

$   7,462

$   5,183

$   2,279

$     (57)

$   2,222

$   2,243

$           (4)

$        2,247

$   1.51

Non-GAAP adjustments:

Amortization expense

—

(466)

466

—

466

410

5

406

0.27

Acquisition/divestiture-related net
charges/credits

57

(118)

175

(36)

139

103

—

103

0.07

Restructuring and restructuring-related net
charges/credits

47

(29)

77

—

77

69

—

69

0.05

Litigation-related net charges/credits

—

(76)

76

—

76

60

—

60

0.04

Investment portfolio net losses/gains and
impairments

—

—

—

(139)

(139)

(106)

—

(106)

(0.07)

EU MDR implementation costs

9

(5)

14

—

14

12

—

12

0.01

IEEPA tariff refund

(83)

—

(83)

—

(83)

(77)

—

(77)

(0.05)

Deferred tax expenses/benefits

—

—

—

—

—

(250)

—

(250)

(0.17)

Adjusted

$   7,492

$   4,490

$   3,002

$    (232)

$   2,771

$   2,465

$            1

$        2,464

$   1.66

Six Months Ended June 30, 2025

(in millions, except per share data)

Gross
Profit

Operating
Expenses

Operating
Income
(Loss)

Other
Income
(Expense)

Income
(Loss)
Before
Income
Taxes

Net
Income
(Loss)

Net Income
(Loss)
Attributable to
Noncontrolling
Interests

Net Income
(Loss)
Attributable to
Boston
Scientific
Common
Stockholders

Impact
per
Share

Reported

$   6,633

$   4,894

$   1,740

$       6

$   1,746

$   1,467

$           (4)

$        1,471

$   0.98

Non-GAAP adjustments:

Amortization expense

—

(444)

444

—

444

383

4

378

0.25

Goodwill and other intangible asset impairment
charges

—

(46)

46

—

46

37

—

37

0.02

Acquisition/divestiture-related net
charges/credits

136

(150)

286

(229)

57

61

—

61

0.04

Restructuring and restructuring-related net charges/credits

61

(149)

210

—

210

184

—

184

0.12

Investment portfolio net losses/gains and
impairments

—

—

—

6

6

5

—

5

0.00

EU MDR implementation costs

15

(7)

23

—

23

19

—

19

0.01

Deferred tax expenses/benefits

—

—

—

—

—

91

—

91

0.06

Discrete tax items

—

—

—

—

—

0

—

0

0.00

Adjusted

$   6,846

$   4,097

$   2,749

$    (216)

$   2,533

$   2,249

$            1

$        2,248

$   1.51

An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document.

Amounts may not add due to rounding.

BOSTON SCIENTIFIC CORPORATION

Q3 and FY 2026 GUIDANCE RECONCILIATIONS

(Unaudited)

Net Sales

‌

                    Q3 2026 Estimate                    

               Full Year 2026 Estimate               

(Low)

(High)

(Low)

(High)

Reported growth

3.0 %

5.0 %

5.5 %

6.5 %

Impact of foreign currency fluctuations

— %

— %

(0.5) %

(0.5) %

Operational growth

3.0 %

5.0 %

5.0 %

6.0 %

Impact of certain acquisitions/divestitures                                                              

— %

— %

— %

— %

Organic growth

3.0 %

5.0 %

5.0 %

6.0 %

Use of Non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share (EPS) that exclude certain charges (credits); operational net sales, which exclude the impact of foreign currency fluctuations; and organic net sales, which exclude the impact of foreign currency fluctuations as well as the impact of certain acquisitions and divestitures with less than a full period of comparable net sales. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States and should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Further, other companies may calculate these non-GAAP financial measures differently than we do, which may limit the usefulness of those measures for comparative purposes.

To calculate adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share, we exclude certain charges (credits) from GAAP net income and GAAP net income attributable to Boston Scientific common stockholders, which include amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio net losses (gains) and impairments, restructuring and restructuring-related net charges (credits), litigation-related net charges (credits), European Union (EU) Medical Device Regulation (MDR) implementation costs, debt extinguishment net charges, deferred tax expenses (benefits), discrete tax items and other charges (credits) as appropriate. Amounts are presented after-tax using the company's effective tax rate, unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate." In addition to the explanation below, please refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission or Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in any Quarterly Report on Form 10-Q that we have filed or will file thereafter for an explanation of each of these adjustments and the reasons for excluding each item. The following is an explanation of each incremental or revised adjustment type, since our most recent Annual Report on Form 10-K, that management excluded as part of these non-GAAP financial measures as well as the reason for excluding each item:

Restructuring and restructuring-related net charges (credits) - These adjustments primarily represent severance and other compensation-related charges, fixed asset write-offs, contract cancellations, project management fees, facility shut down costs, costs to transfer manufacturing lines between geographically dispersed facilities and other direct costs associated with our restructuring plans. These restructuring plans each consist of distinct initiatives that are fundamentally different from our ongoing, core cost reduction initiatives in terms of, among other things, the frequency with which each action is performed and the required planning, resourcing, cost and timing. Examples of such initiatives include the movement of business activities, facility consolidations and closures and the transfer of product lines between manufacturing facilities, which, due to the highly regulated nature of our industry, requires a significant investment in time and cost to create duplicate manufacturing lines, run product validations and seek regulatory approvals. Restructuring plans take place over a defined timeframe and have a distinct project timeline that requires, and begins subsequent to, approval by our Board of Directors. In contrast to our ongoing cost reduction initiatives, restructuring plans typically result in duplicative cost and exit costs over the defined timeframe and are not considered part of our core, ongoing operations. In addition, we may incur certain charges such as severance and other compensation-related charges, fixed asset write-offs, contract cancellations, facility shutdown costs, and inventory write-downs associated with discontinuations of significant product lines. These restructuring plans and activities are incremental to the core activities that arise in the ordinary course of our business. Restructuring and restructuring-related net charges (credits) are excluded from management's assessment of operating performance and from our operating segments' measures of profit and loss used for making operating decisions and assessing performance. Deferred tax expenses (benefits) - These amounts represent significant non-cash tax benefits arising from internal reorganizations or intra-entity asset transfers. The deferred tax effects related to the establishment and subsequent reversal of net deferred tax assets are excluded from management's assessment of operating performance used for making operating decisions and assessing performance. IEEPA tariff refund - This amount relates to the benefit recognized in connection with the recovery of previously incurred tariffs imposed under the International Emergency Economic Powers Act (IEEPA) recognized in Cost of products sold within our unaudited consolidated statements of operations. This amount is excluded from management's assessment of operating performance used for making operating decisions and assessing performance. The GAAP financial measures most directly comparable to adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share are GAAP net income (loss), GAAP net income (loss) attributable to Boston Scientific common stockholders and GAAP net income (loss) per common share – diluted, respectively.

To calculate operational net sales growth rates, which exclude the impact of foreign currency fluctuations, we convert actual net sales from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior periods. To calculate organic net sales growth rates, we also remove the impact of certain acquisitions and divestitures with less than a full period of comparable net sales. The GAAP financial measure most directly comparable to operational net sales and organic net sales is net sales reported on a GAAP basis.

Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP financial measure are included in the accompanying schedules.

Management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors and to establish operational goals and forecasts that are used in allocating resources. In addition, management uses these non-GAAP financial measures to further its understanding of the performance of our operating segments. The adjustments excluded from our non-GAAP financial measures are consistent with those excluded from our operating segments' measures of net sales and profit or loss. These adjustments are excluded from the segment measures reported to our chief operating decision maker that are used to make operating decisions and assess performance.

We believe that presenting adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders, adjusted net income (loss) per share, operational net sales growth rates and organic net sales growth rates, in addition to the corresponding GAAP financial measures, provides investors greater transparency to the information used by management for its operational decision-making and allows investors to see our results "through the eyes" of management. We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance.

SOURCE Boston Scientific Corporation