Track market-moving stories before they get noisy

Key Takeaways EQT secured a 10-year gas supply deal for the planned CPV Shay power plant, starting as early as 2031.More than 45 Appalachian projects could create nearly 20 Bcf per day of potential gas demand for EQT.EQT's LNG deal may add about $45 million to 2028 free cash flow, though project delays remain a risk. EQT Corporation (EQT - Free Report) is trying to convert rising electricity consumption into contracted gas demand rather than simply chasing higher production. The strategy centers on power plants, data centers, pipeline access and liquefied natural gas (LNG - Free Report)  exposure.

That framing matters for investors. New demand can help Appalachian gas only if projects move from proposals to funded, permitted and contracted infrastructure.

EQT Targets Power Demand With Long-Term ContractsEQT’s clearest power-linked step is a 10-year agreement to supply 325,000 Dekatherm (Dth) per day of natural gas to the planned CPV Shay Energy Center in Doddridge County, WV. The facility is expected to enter service as early as 2031.

The contract links pricing to PJM power markets rather than a conventional gas index. At recent forward prices, that structure is expected to provide a premium to local gas indexes and reduce reliance on Appalachian basin pricing.

Image Source: EQT Corporation

How EQT Connects Data Centers to Gas GrowthManagement is tracking more than 45 Appalachian demand and pipeline takeaway projects totaling nearly 20 Bcf per day of potential demand. The opportunity set includes power generation, data center-related load growth and new outlets for regional supply.

The key word is potential. Many projects are still under evaluation, which means EQT’s demand story depends on customer commitments and commercial structures that can support financing and construction.

Range Resources Corporation (RRC - Free Report) is relevant in this context because Appalachian producers face a similar investor question. Regional gas values improve most when new demand and takeaway capacity absorb supply inside or near the basin.

EQT’s LNG Exposure Broadens Its Demand BaseEQT also signed a five-year LNG offtake agreement for 0.5 million tonnes per annum beginning in 2028. The arrangement sources LNG from various Gulf Coast facilities and accelerates EQT’s exposure to export-linked markets.

The agreement is projected to add about $45 million to 2028 free cash flow at recent strip prices. For EQT, LNG exposure broadens the demand base beyond local power and pipeline projects and adds a route to international natural gas markets.

Cheniere Energy, Inc. (LNG - Free Report) offers a useful reference point for the broader LNG theme because it is tied to liquefaction and export infrastructure. EQT’s approach is different, as it seeks LNG exposure while remaining primarily an Appalachian natural gas producer.

Why EQT’s Project Pipeline Depends on ExecutionThe long-duration demand story is not immediate. Major power, pipeline and data center projects can require three to five years to build, and CPV Shay itself may not begin until 2031.

Permitting, construction timing, financing and customer commitments will determine how much of the project pipeline becomes real demand. Delays could defer pricing benefits and limit the ability to turn emerging demand into a material earnings driver.

EQT’s Weak Momentum Offsets Emerging Demand ThemesThe bottom line is that EQT has assembled several demand-linked catalysts, but they remain longer dated. Power contracts, LNG exposure and data center-related load growth can support future outlets for Appalachian gas only if the infrastructure cycle advances.

Near-term signals are less favorable. EQT currently has a Zacks Rank #4 (Sell). Its earnings estimates have been revised downward for 2026 and 2027, supporting a cautious stance. The stock also has a Momentum Score of F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Growth Score of C and the VGM Score of C are neutral rather than clearly favorable. Together, these scores suggest that the emerging-demand narrative has not yet translated into a clearly superior near-term earnings or share-price profile.

Franklin Electric Co., Inc. (FELE) Q2 2026 Earnings Call July 28, 2026 10:00 AM EDT

Company Participants

Dean Cantrell - Director of Investor Relations
Joseph Ruzynski - CEO & Director
Jennifer Wolfenbarger - VP & CFO

Conference Call Participants

Matt Summerville - D.A. Davidson & Co., Research Division
Ryan Connors - Northcoast Research Partners, LLC
Bryan Blair - Oppenheimer & Co. Inc., Research Division
Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division

Presentation

Operator

Good day, and welcome to the Franklin Electric Reports Second Quarter 2026 Sales and Earnings Conference Call.

[Operator Instructions] Please be advised that today's conference is being recorded.

It is now my pleasure to introduce Dean Cantrell, Director of Investor Relations.

Dean Cantrell
Director of Investor Relations

Thank you, Andrew, and welcome, everyone, to Franklin Electric's Second Quarter 2026 Earnings Conference Call. Joining me today is Jennifer Wolfenbarger, our Chief Financial Officer; and Joe Ruzynski, our Chief Executive Officer.

On today's call, Joe will review our second quarter business highlights. Jennifer will provide additional details on our financial performance, and then Joe will make some additional comments highlighting our Water Systems segment. We will then take your questions. A replay link of the webcast will be archived for 7 days, and the transcript and audio version of this call will be available on our website tomorrow.

Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which could cause actual results to differ materially from such forward-looking statements. A discussion of these factors may be found in the company's annual report on Form 10-K and today's earnings release.

During this call, we will present both

HomeEarnings AnalysisTech 

SummarySuper Micro Computer, Inc. proves its structurally robust, AI-driven growth prospects through the outsized, new orders of $60B in the preliminary FQ4 '26 results.Despite this, SMCI faces lumpy top/bottom-line performance from the customers' delayed data center buildouts and capex/FCF risks from the insatiable compute demand.SMCI stock trades at discounted P/E of 10.61x, with it reflecting the governance headwinds across the smuggling case and the financial reporting weakness.Elevated short interest, equity dilution risks, insider selling, and uncertain order conversion timing reinforce the mixed risk/reward prospects entering FQ4'26 earnings call.SMCI remains a Hold here, with it remaining a potential value trap, pending further governance clarity and improved credibility. spawns/iStock via Getty Images

I previously rated Super Micro Computer, Inc. (SMCI) as a Hold in November 2025, given the potential value trap status and the mixed financial reporting/sales performance.

In this article, I shall discuss why SMCI remains a

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July 28, 2026 16:01 ET  | Source: EXL

2026 Second Quarter Revenue of $594.8 Million, up 15.6% year-over-year

Q2 Diluted EPS (GAAP) of $0.42, up 4.9% from $0.40 in Q2 of 2025

Q2 Adjusted Diluted EPS (Non-GAAP) (1) of $0.59, up 22.3% from $0.49 in Q2 of 2025

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended June 30, 2026.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16% year-on-year and adjusted diluted EPS of 22% year-on-year. Our sustained double-digit growth reflects continued execution of our data and AI strategy and our differentiated position which helps clients effectively adopt AI across the enterprise. We have very good visibility into the balance of the year and look forward to a solid finish to 2026.”

Chief Financial Officer Maurizio Nicolelli said, “Our strong second quarter performance, sustained growth momentum and healthy pipeline give us the confidence to increase our organic full-year revenue growth guidance to 13% to 14%. In addition, we are also updating our guidance to include $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026. We now expect full-year 2026 total revenue to be in the range of $2.390 billion to $2.415 billion, up from our prior guidance of $2.30 billion to $2.33 billion, reflecting 14% to 16% year-over-year growth on a reported basis. We now expect adjusted diluted earnings per share of $2.25 to $2.29, a 16% to 18% increase over 2025, up from our prior guidance of $2.18 to $2.23.”

__________________________________________________________

(1)Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.
Financial Highlights: Second Quarter 2026

Revenue for the quarter ended June 30, 2026, increased to $594.8 million compared to $514.5 million for the second quarter of 2025, an increase of 15.6% on a reported basis and 15.9% on a constant currency basis. Revenue increased by 4.3% sequentially on a reported basis and 4.4% on a constant currency basis, from the first quarter of 2026.   Revenue Gross Margin  Three months ended  Three months ended Reportable Segments June 30,
2026 June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2025 March 31,
2026  (dollars in millions)    Insurance $197.8 $172.2 $194.0 34.6 % 34.8 % 37.7 %Healthcare and Life Sciences  158.0  129.5  151.9 46.9 % 43.5 % 45.3 %Banking, Capital Markets and Diversified Industries  133.9  121.1  127.4 34.8 % 37.8 % 36.9 %International Growth Markets  105.1  91.7  97.1 35.1 % 35.1 % 34.1 %Total $594.8 $514.5 $570.4 38.0 % 37.7 % 38.9 %                    Operating income margin for the quarter ended June 30, 2026 was 14.7%, compared to 15.8% for the second quarter of 2025 and 16.1% for the first quarter of 2026. Adjusted operating income margin for the quarter ended June 30, 2026 was 19.7%, compared to 19.6% for the second quarter of 2025 and 20.5% for the first quarter of 2026.Diluted earnings per share for the quarter ended June 30, 2026 was $0.42, compared to $0.40 for the second quarter of 2025 and $0.43 for the first quarter of 2026. Adjusted diluted earnings per share for the quarter ended June 30, 2026 was $0.59, compared to $0.49 for the second quarter of 2025 and $0.58 for the first quarter of 2026. Business Highlights: Second Quarter 2026

Won 17 new clients in the second quarter of 2026.EXL agreed to acquire iMerit, advancing its leadership in enterprise AI by adding foundation model expertise and technology.EXL achieved gold status with Databricks and deepened its collaboration to help enterprises build trusted data foundations for AI at scale.EXL became an OpenAI Services Partner, expanding its AI delivery capabilities through OpenAI’s enterprise capabilities.EXL joined the Claude Partner Network, further strengthening its AI ecosystem with Anthropic’s frontier AI models.EXL achieved Snowflake Premier Partner status, reinforcing its commitment to delivering strategic data and AI solutions for clients.EXL integrated with NVIDIA Transaction Foundation Model, bringing next-generation fraud detection and risk intelligence to financial institutions.EXL named a Horizon 3 - Market Leader in the HFS Horizons Data Modernization and AI, 2026 report for EXL’s ability to operationalize AI through semantic data foundations, agentic workflow orchestration, and proven enterprise-scale transformation outcomes.Appointed Bhupender Singh as president and head of international growth markets. 2026 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 95.0, U.K. pound sterling to U.S. dollar exchange rate of 1.33, U.S. dollar to the Philippine peso exchange rate of 61.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2026:

Revenue of $2.390 billion to $2.415 billion, representing an increase of 14% to 16% on a reported basis, which includes $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026, and 13% to 14% on an organic constant currency basis from 2025.Adjusted diluted earnings per share of $2.25 to $2.29, representing an increase of 16% to 18% from 2025. Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, July 29, 2026, at 10:00 A.M. ET to discuss the Company’s second quarter operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 68,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include the satisfaction or waiver of applicable closing conditions to the consummation of the iMerit acquisition and the expected timing thereof, our ability to successfully integrate announced or future strategic acquisitions or achieve anticipated synergies, our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

 EXLSERVICE HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)
  Three months ended June 30, Six months ended June 30, 2026
 2025
 2026
 2025
Revenues, net$594,763  $514,460  $1,165,114  $1,015,479 Cost of revenues(1) 368,800   320,272   717,070   627,977 Gross profit(1) 225,963   194,188   448,044   387,502 Operating expenses:       General and administrative expenses 74,436   59,549   143,487   118,966 Selling and marketing expenses 49,628   39,446   96,829   81,371 Depreciation and amortization expense 14,604   14,055   28,607   27,612 Total operating expenses 138,668   113,050   268,923   227,949 Income from operations 87,295   81,138   179,121   159,553 Foreign exchange gain, net 1,609   2,211   2,744   3,403 Interest expense (5,068)  (4,282)  (9,019)  (8,426)Other income, net 130   5,671   2,521   10,374 Income before income tax expense and earnings from equity affiliates 83,966   84,738   175,367   164,904 Income tax expense 19,426   18,546   43,744   32,042 Income before earnings from equity affiliates 64,540   66,192   131,623   132,862 Loss from equity-method investment (29)  (141)  (31)  (250)Net income$64,511  $66,051  $131,592  $132,612 Earnings per share:       Basic$0.42  $0.41  $0.85  $0.82 Diluted$0.42  $0.40  $0.85  $0.81 Weighted average number of shares used in computing earnings per share:       Basic 152,554,401   162,925,484   154,292,120   162,709,034 Diluted 152,831,994   164,193,258   154,858,444   164,376,498                  (1) Exclusive of depreciation and amortization expense.

 EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
   As of  June 30, 2026 December 31, 2025     Assets    Current assets:    Cash and cash equivalents $126,722  $146,326 Short-term investments  157,102   182,041 Restricted cash  12,964   12,392 Accounts receivable, net  434,362   343,105 Other current assets  144,132   146,093 Total current assets  875,282   829,957 Property and equipment, net  114,587   111,821 Operating lease right-of-use assets  97,495   97,411 Restricted cash  7,086   7,251 Deferred tax assets, net  139,288   129,968 Goodwill  418,693   419,654 Other intangible assets, net  29,720   36,204 Long-term investments  6,396   8,198 Other assets  59,340   61,771 Total assets $1,747,887  $1,702,235 Liabilities and stockholders’ equity    Current liabilities:    Accounts payable $6,733  $4,753 Current portion of long-term borrowings  381,155   4,886 Deferred revenue  22,591   15,356 Accrued employee costs  112,908   146,775 Accrued expenses and other current liabilities  161,525   135,498 Current portion of operating lease liabilities  18,734   16,857 Total current liabilities  703,646   324,125 Long-term borrowings, less current portion  —   293,712 Operating lease liabilities, less current portion  88,130   88,167 Deferred tax liabilities, net  2,256   2,125 Other non-current liabilities  87,613   81,401 Total liabilities  881,645   789,530 Commitments and contingencies    Stockholders’ equity:    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued  —   — Common stock, $0.001 par value; 400,000,000 shares authorized, 210,101,885 shares issued and 151,745,072 shares outstanding as of June 30, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025  210   209 Additional paid-in capital  724,432   677,562 Retained earnings  1,664,571   1,532,979 Accumulated other comprehensive loss  (223,682)  (180,727)Total including shares held in treasury  2,165,531   2,030,023 Less: 58,356,813 shares as of June 30, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost  (1,299,289)  (1,117,318)Total stockholders’ equity  866,242   912,705 Total liabilities and stockholders’ equity  $1,747,887  $1,702,235 
EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

Adjusted operating income and adjusted operating income margin;Adjusted EBITDA and adjusted EBITDA margin;Adjusted net income and adjusted diluted earnings per share; andRevenue growth on a constant currency basis. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, amortization of prior service cost arising from implementation of new Labor Codes in India, certain defined social security contributions, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

EXL provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's underlying business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Foreign currency translation impacted revenue growth, primarily driven by movements in the U.S. dollar against the Indian rupee (INR), the U.K. pound sterling (GBP), and Australian dollar (AUD).

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended June 30, 2026 and June 30, 2025, and the three months ended March 31, 2026:

 Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)
   Three months ended   June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Income tax expense  19,426   18,546   24,318 add/(subtract): Foreign exchange gain/(loss), net, interest expense, gain/(loss)
from equity-method investment and other income/(loss), net  3,358   (3,459)  427 Income from operations (GAAP) $87,295  $81,138  $91,826 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Acquisition-related expenses (a)  1,894   —   — Adjusted operating income (Non-GAAP) $117,078  $100,807  $117,153 Adjusted operating income margin as a % of revenue (Non-GAAP)  19.7 %  19.6 %  20.5 %add: Depreciation on long-lived assets  11,346   10,778   10,777 Adjusted EBITDA (Non-GAAP) $128,424  $111,585  $127,930 Adjusted EBITDA margin as a % of revenue (Non-GAAP)  21.6 %  21.7 %  22.4 %              (a)   To exclude acquisition-related expenses incurred for the announced acquisition of I Merit Inc. (“iMerit”) during the three months ended June 30, 2026.

 Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share amount)
   Three months ended  June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Changes in fair value of contingent consideration  3,000   —   — add: Acquisition-related expenses (a)  1,894   —   — add: Amortization of prior service cost (b)  566   —   521 subtract: Acquisition-related adjustments  —   (945)  — subtract: Tax impact on stock-based compensation expense (c)  (6,097)  (4,211)  (1,316)subtract: Tax impact on amortization of acquisition-related intangibles  (821)  (807)  (812)subtract: Tax impact on amortization of prior service cost  (144)  —   (133)Adjusted net income (Non-GAAP) $90,798  $79,757  $90,668 Adjusted diluted earnings per share (Non-GAAP) $0.59  $0.49  $0.58  (a)To exclude acquisition-related expenses incurred for the announced acquisition of iMerit during the three months ended June 30, 2026.(b)To exclude amortization of prior service cost arising from the implementation of the new Labor Codes in India.(c)Tax impact includes ($17) and $203 during the three months ended June 30, 2026 and 2025 respectively, and $1,280 during the three months ended March 31, 2026, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

DELAWARE, Ohio, July 28, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced fiscal third quarter 2026 results.

On June 30, 2025, we entered into a definitive agreement to divest our Containerboard Business, including our CorrChoice sheet feeder system. Beginning in the third quarter of fiscal 2025, the Containerboard Business has been reported as discontinued operations. Unless otherwise noted, all financial results and discussions in this press release relate to continuing operations. Additional information regarding the basis of presentation and changes in reportable segments is provided under "Basis of Presentation and Comparability".

Fiscal Third Quarter 2026 Financial Highlights:
(all current period results are compared to the third quarter of 2025 and both periods reflect only continuing operations unless otherwise noted)

Net income increased 156.7% to $78.8 million or $1.37 per diluted Class A share compared to net income of $30.7 million or $0.53 per diluted Class A share.Net income, excluding the impact of adjustments(1), increased 87.0% to $93.3 million or $1.61 per diluted Class A share compared to net income, excluding the impact of adjustments, of $49.9 million or $0.86 per diluted Class A share.Adjusted EBITDA(2) increased 24.7% to $183.4 million compared to Adjusted EBITDA of $147.1 million.Net cash provided by operating activities decreased by $69.3 million to a source of $77.8 million. Adjusted free cash flow(3) decreased by $86.7 million to a source of $57.7 million. Adjusted free cash flow in the prior year includes contribution from the Containerboard Business and is not directly comparable to current year results.Total debt of $1,030.4 million decreased by $1,686.6 million primarily due to repayment of debt from the sales of the Containerboard Business and the timberlands business. Net debt(4) decreased by $1,689.9 million to $741.9 million. Our leverage ratio(5) decreased to 1.1x from 3.1x. Strategic Actions and Announcements

Increased quarterly dividend by 10.7%, reflecting the continued strength of our free cash flow generation, the significant progress we have made in strengthening our balance sheet, and our confidence in Greif’s long-term earnings power.Announcing intention to begin executing on share repurchases under our existing share repurchase authorizations as part of our disciplined capital allocation strategy.Achieved $90 million cumulative run-rate savings on cost optimization program – achieving the high-end of our commitment range for the fiscal year, and reaffirmed our expectation to achieve at least $120 million of cumulative run-rate savings by the end of fiscal year 2027.Completed growth-enabling strategic, bolt-on acquisition of Envaplast on June 2, 2026. The acquisition serves predominantly the Agrochemical end markets and has EBITDA margins and Free Cash Flow conversion well above Greif’s M&A criteria. Commentary from CEO Ole Rosgaard

“Our third quarter results demonstrate that Greif continues to become a stronger company despite a challenging industrial environment. Industrial demand remains subdued, geopolitical uncertainty continues to create volatility, and we have yet to see compelling evidence of a broad recovery. Our agenda, however, has not changed. We are not waiting for the cycle to improve. We are improving Greif everywhere.

Our performance reflects disciplined execution, operational excellence, and thoughtful capital allocation. During the quarter, we expanded margins, strengthened our balance sheet, increased our dividend, continued optimizing our cost structure, and completed another attractive bolt-on acquisition. These results were earned through disciplined execution and the commitment of our colleagues around the world.

Our strategy is straightforward. We are building a higher-quality company by continuously improving our operations, investing with discipline, and allocating capital where it creates the greatest long-term value. Every decision we make is intended to increase our earnings power, strengthen our competitive position, and enhance our ability to create value through every stage of the industrial cycle.

We cannot predict when the cycle will turn. We can decide how prepared Greif will be when it does. Every quarter, we are becoming a more resilient, more efficient, and more valuable company. We believe that positions Greif to deliver superior long-term returns for our shareholders.”

(1)Adjustments that are excluded from net income and from earnings per diluted Class A share are acquisition and integration related costs, restructuring and other charges, non-cash asset impairment charges, non-cash pension settlement charges, (gain) loss on disposal of properties, plants and equipment, net, (gain) loss on disposal of businesses, net, and other costs.(2)Adjusted EBITDA is defined as net income, plus interest expense, net, plus non-cash pension settlement charges, plus other (income) expense, net, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs.(3)Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition and integration related costs, plus cash paid for integration related Enterprise Resource Planning (ERP) systems and equipment, plus cash paid for taxes related to Containerboard Business divestment, plus cash paid for taxes related to Soterra Assets divestment, plus cash paid for other nonrecurring costs. The cash flows from Containerboard Business have not been segregated and are included within the adjusted free cash flow for comparative period.(4)Net debt is defined as total debt less cash and cash equivalents.(5)Leverage ratio for the periods indicated is defined as adjusted net debt divided by trailing twelve month EBITDA, each as calculated under the terms of the Company's Third Amended and Restated Credit Agreement dated as of February 27, 2026, filed separately as Exhibit 10.1 to the Company's Current Report on Form 8-K on March 5, 2026 (the "2026 Credit Agreement"). As calculated under the 2026 Credit Agreement, adjusted net debt was $668.0 million and $2,382.2 million as of June 30, 2026 and July 31, 2025 respectively, and trailing twelve month credit agreement EBITDA was $621.6 million and $771.5 million as of June 30, 2026 and July 31, 2025, respectively.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this release with the most directly comparable GAAP financial measures is included in the financial schedules that are a part of this release. These non-GAAP financial measures are intended to supplement, and should be read together with, our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of this financial information should not place undue reliance on these non-GAAP financial measures.

Basis of Presentation and Comparability
On June 30, 2025, we entered into a definitive agreement to divest our Containerboard Business, including our CorrChoice sheet feeder system, in an all-cash transaction for $1.8 billion to Packaging Corporation of America. Beginning in the third quarter of 2025, the Containerboard Business was reported as discontinued operations. The transaction closed as of August 31, 2025.

Effective October 1, 2025, our Integrated Solutions reportable segment was renamed Innovative Closure Solutions. Additionally, activities related to the purchase and sale of recycled fiber and the production and sale of adhesives used in paperboard products, which were previously reported within the Integrated Solutions reportable segment, are now reported within the Sustainable Fiber Solutions reportable segment. Likewise, activities related to production and sale of complimentary packaging products and services such as paints, linings and filling, that are used in or relate to our steel products and were previously reported within the Integrated Solutions reportable segment, are now reported within the Durable Metal Solutions reportable segment.

Fiscal Third Quarter 2026 Segment Results:
(all current period results are compared to the third quarter of 2025 and both periods reflect only continuing operations unless otherwise noted)

Net sales are impacted mainly by the volume of products sold, selling prices and product mix, and the impact of changes in foreign currencies against the U.S. Dollar. The table below shows the percentage impact of each of these items on net sales for our primary products for the fiscal third quarter of 2026 as compared to the prior year quarter for the business segments indicated. Net sales from completed acquisitions are not included in the table below but will be included one year after purchase within its respective segments.

Net Sales Impact Customized Polymer Solutions Durable Metal Solutions Sustainable Fiber Solutions Innovative Closure SolutionsCurrency Translation 2.5% 3.6% 0.1% 3.5%Volume 1.5% (3.1)% (4.0)% 5.5%Selling Prices and Product Mix 8.8% 2.9% 1.9% 10.0%Total Impact 12.8% 3.4% (2.0)% 19.0%
Customized Polymer Solutions

Net sales increased by $45.9 million to $383.8 million primarily due to $29.9 million higher average selling prices, $8.5 million of positive foreign currency translation impacts and higher volumes.

Gross profit increased by $20.2 million to $91.1 million. The increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation and manufacturing costs.

Operating profit increased by $24.4 million to $32.8 million primarily due to the same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization.

Adjusted EBITDA increased by $27.2 million to $64.3 million primarily due to the same factors that impacted operating profit.

Durable Metal Solutions

Net sales increased by $13.3 million to $405.6 million primarily due to $14.0 million of positive foreign currency translation impacts and $11.4 million of higher average selling prices, partially offset by $12.0 million attributable to lower volumes.

Gross profit increased by $2.8 million to $90.9 million. The increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material costs and higher transportation costs.

Operating profit increased by $6.9 million to $52.7 million primarily due to same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization, partially offset by loss on disposal of properties, plants and equipment, net.

Adjusted EBITDA increased by $10.4 million to $64.0 million primarily due to the same factors that impacted gross profit and lower SG&A compensation expenses related to cost optimization.

Sustainable Fiber Solutions

Net sales decreased by $24.2 million to $346.5 million primarily due to $15.3 million attributable to lower average selling prices, $5.3 million of impacts from the Soterra Divestiture and lower volumes.

Gross profit decreased by $12.0 million to $73.1 million. The decrease in gross profit was primarily due to the same factors that impacted net sales, partially offset by lower raw material and manufacturing costs related to lower volumes.

Operating profit increased by $8.9 million to $13.9 million primarily due to lower restructuring and other charges, lower non-cash asset impairment charges and lower SG&A compensation expenses related to cost optimization, partially offset by the same factors that impacted gross profit.

Adjusted EBITDA decreased by $6.3 million to $42.5 million primarily due to the same factors that impacted gross profit, partially offset by lower SG&A expenses related to cost optimization.

Innovative Closure Solutions

Net sales increased by $4.7 million to $29.7 million primarily due to higher average selling prices, higher volumes and positive foreign currency translation impact.

Gross profit increased by $5.6 million to $17.5 million. The increase in gross profit was primarily due to the same factors that impacted net sales.

Operating profit increased by $4.0 million to $8.5 million primarily due to the same factors that impacted gross profit.

Adjusted EBITDA increased by $5.0 million to $12.6 million primarily due to the same factors that impacted gross profit.

Tax Summary

During the third quarter, we recorded an income tax rate of 17.9 percent and a tax rate excluding the impact of adjustments of 18.0 percent. Income tax expense for interim periods is calculated using estimated annual effective tax rates applied to year to date earnings, which can result in quarter‑to‑quarter variability. For fiscal 2026, we expect our tax rate to range between 24.0 to 28.0 percent and our tax rate excluding adjustments to range between 25.0 to 29.0 percent.

Dividend Summary

On June 2, 2026, the Board of Directors declared quarterly cash dividends of $0.62 per share of Class A Common Stock and $0.93 per share of Class B Common Stock, resulting in a total dividend payment of approximately $35.2 million. Dividends were paid by July 1, 2026, to stockholders of record at the close of business on June 17, 2026.

Company Outlook

(in millions)Fiscal 2026 Outlook Reported at Q3Adjusted EBITDA$615 - $635Adjusted free cash flow$305 - $325
Note: Our fiscal 2026 guidance estimates of Adjusted EBITDA and Adjusted free cash flow and our estimated tax rate and tax rate excluding the impact of adjustments contain forward-looking statements and actual results may differ materially as a result of known and unknown uncertainties and risks, including those set forth below under the heading “Forward-Looking Statements.” In addition, these forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations to their most directly comparable GAAP financial measures, forecasted net income in the case of Adjusted EBITDA and forecasted net cash provided by operating activities in the case of Adjusted free cash flow, due to the inherent difficulty in projecting and quantifying the various adjusting items necessary for such reconciliations, such as gains or losses on the disposal of businesses or properties, plants and equipment, non-cash asset impairment charges due to unanticipated changes in the business, restructuring related activities, acquisition and integration related costs, debt extinguishment costs, stock-based compensation expense, amortization and depreciation expense, merger and acquisition activity, and other costs that have not yet occurred, are out of our control, or cannot be reasonably predicted. Accordingly, reconciliations of our guidance for Adjusted EBITDA and Adjusted free cash flow are not available without unreasonable effort.

Conference Call

The Company will host a conference call to discuss third quarter 2026 results on July 29, 2026, at 8:00 a.m. Eastern Time (ET). Participants may access the call using the following online registration link: https://register-conf.media-server.com/register/BI2b6bfecf034241d1929d1b17aa4056c5. Registrants will receive a confirmation email containing dial in details and a unique conference call code for entry. Phone lines will open at 7:30 a.m. ET on July 29, 2026. A digital replay of the conference call will be available two hours following the call on the Company’s web site at http://investor.greif.com.

Investor Relations contact information

Bill D’Onofrio, Vice President, Corporate Development & Investor Relations, 614-499-7233. [email protected]

About Greif

Founded in 1877, Greif is a global leader in performance packaging located in 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to management. Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis, the Company can give no assurance that these expectations will prove to be correct. Such forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from those forecasted, projected or anticipated, whether expressed or implied. 

Such risks and uncertainties that might cause a difference include, but are not limited to, the following: (i) historically, our business has been sensitive to changes in general economic or business conditions, (ii) our global operations subject us to political risks, instability and currency exchange that have affected and could continue to adversely affect our results of operations, including the impacts of ongoing conflicts such as with Iran, (iii) the current and future challenging global economy and disruption and volatility of the financial and credit markets may adversely affect our business and our access to financing and could impact the timing of or otherwise disrupt our share repurchase plan, (iv) the continuing consolidation of our customer base and suppliers may intensify pricing pressure, (v) we operate in highly competitive industries, (vi) our business is sensitive to changes in industry demands and customer preferences, (vii) raw material delays, shortages, price fluctuations, global supply chain disruptions and high inflation may adversely impact our results of operations, (viii) energy and transportation price fluctuations and shortages may adversely impact our manufacturing operations and costs, (ix) we may encounter difficulties or liabilities arising from acquisitions or divestitures, (x) we may incur additional rationalization costs and product dispositions and there is no guarantee that our efforts to reduce costs will be successful, (xi) several operations are conducted by joint ventures that we cannot operate solely for our benefit, (xii) certain of the agreements that govern our joint ventures provide our partners with put or call options, (xiii) our ability to attract, develop and retain talented and qualified employees, managers and executives is critical to our success, (xiv) our business may be adversely impacted by work stoppages and other labor relations matters, (xv) we may be subject to losses that might not be covered in whole or in part by existing insurance reserves or insurance coverage and general insurance premium and deductible increases, (xvi) our business depends on the uninterrupted operations of our facilities, systems and business functions, including our information technology (“IT”) and other business systems, (xvii) a cyber-attack, security breach of customer, employee, supplier or company information and data privacy risks and costs of compliance with new regulations may have a material adverse effect on our business, financial condition, results of operations and cash flows, (xviii) we have in the past been and in the future could be subject to changes in our tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, (xix) we have a significant amount of goodwill and long-lived assets which, if impaired in the future, would adversely impact our results of operations, (xx) changing climate, global climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance, (xxi) we may be unable to achieve our greenhouse gas emission reduction target by 2030, (xxii) legislation/regulation related to environmental and health and safety matters could negatively impact our operations and financial performance, (xxiii) product liability claims and other legal proceedings could adversely affect our operations and financial performance, and (xxiv) we may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate, or are alleged to have violated, anti-bribery, competition or other laws.

The risks described above are not all-inclusive, and given these and other possible risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. For a detailed discussion of the most significant risks and uncertainties that could cause our actual results to differ materially from those forecasted, projected or anticipated, see “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K and our other filings with the Securities and Exchange Commission.

All forward-looking statements made in this news release are expressly qualified in their entirety by reference to such risk factors. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED  Three months ended June 30, Nine months ended June 30,(in millions, except per share amounts)  2026   2025   2026   2025 Net sales $1,165.6  $1,125.9  $3,233.2  $3,221.0 Cost of products sold  893.0   869.9   2,511.0   2,517.1 Gross profit  272.6   256.0   722.2   703.9 Selling, general and administrative expenses  149.5   168.3   487.3   488.4 Acquisition and integration related costs  1.5   2.0   3.6   6.1 Restructuring and other charges  12.1   18.0   42.0   30.4 Non-cash asset impairment charges  1.4   7.2   6.1   24.7 (Gain) loss on disposal of properties, plants and equipment, net  0.2   (3.5)  (217.2)  (5.8)(Gain) loss on disposal of businesses, net  —   0.3   0.5   1.6 Operating profit  107.9   63.7   399.9   158.5 Interest expense, net  7.7   15.8   27.4   47.2 Non-cash pension settlement charges  0.3   —   1.9   — Debt extinguishment charges  —   —   2.5   — Other (income) expense, net  —   1.4   4.8   2.5 Income from continuing operations before income tax (benefit) expense and equity earnings of unconsolidated affiliates, net  99.9   46.5   363.3   108.8 Income tax (benefit) expense  17.9   10.0   82.7   36.8 Equity earnings of unconsolidated affiliates, net of tax  (0.6)  (0.4)  (1.2)  (1.3)Net income from continuing operations  82.6   36.9   281.8   73.3 Net income (loss) from discontinued operations, net of tax  (1.0)  24.1   (3.0)  60.8 Net income  81.6   61.0   278.8   134.1 Net income attributable to noncontrolling interests  (3.8)  (6.2)  (13.8)  (17.4)Net income attributable to Greif, Inc. $77.8  $54.8  $265.0  $116.7 Basic earnings per share attributable to Greif, Inc. common shareholders:Class A common stock (continued operations) - basic $1.39  $0.53  $4.70  $0.96 Class A common stock (discontinued operations) - basic $(0.02) $0.41  $(0.05) $1.05 Earnings per Class A common stock - basic $1.37  $0.94  $4.65  $2.01 Class B common stock (continued operations) - basic $2.08  $0.80  $7.04  $1.44 Class B common stock (discontinued operations) - basic $(0.03) $0.62  $(0.08) $1.57 Earnings per Class B common stock - basic $2.05  $1.42  $6.96  $3.01 Diluted earnings per share attributable to Greif, Inc. common shareholders:Class A common stock (continued operations) - diluted $1.37  $0.53  $4.64  $0.96 Class A common stock (discontinued operations) - diluted $(0.02) $0.41  $(0.05) $1.05 Earnings per Class A common stock - diluted $1.35  $0.94  $4.59  $2.01 Class B common stock (continued operations) - diluted $2.08  $0.80  $7.04  $1.44 Class B common stock (discontinued operations) - diluted $(0.03) $0.62  $(0.08) $1.57 Earnings per Class B common stock - diluted $2.05  $1.42  $6.96  $3.01 Shares used to calculate basic earnings per share attributable to Greif, Inc. common shareholders:Class A common stock  24.8   26.1   25.1   26.0 Class B common stock  21.4   21.3   21.4   21.3 Shares used to calculate diluted earnings per share attributable to Greif, Inc. common shareholders:Class A common stock  25.5   26.1   25.6   26.0 Class B common stock  21.4   21.3   21.4   21.3  GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED(in millions) June 30, 2026
 September 30, 2025
ASSETS      Current assets      Cash and cash equivalents $288.5  $256.7 Trade accounts receivable  747.0   655.3 Inventories  379.6   336.8 Current assets held for sale  19.4   21.8 Other current assets  200.5   159.8    1,635.0   1,430.4 Long-term assets      Goodwill  1,719.0   1,696.5 Intangible assets  794.2   840.9 Operating lease right-of-use assets  175.2   186.5 Noncurrent assets held for sale  —   233.5 Other long-term assets  229.5   243.8    2,917.9   3,201.2 Properties, plants and equipment  1,151.3   1,135.2   $5,704.2  $5,766.8 LIABILITIES AND EQUITY      Current liabilities      Accounts payable $497.3  $429.6 Short-term borrowings  330.5   287.7 Current portion of long-term debt  12.5   — Current portion of operating lease liabilities  41.6   43.9 Current liabilities held for sale  —   2.1 Other current liabilities  386.5   366.3    1,268.4   1,129.6 Long-term liabilities      Long-term debt  687.4   914.8 Operating lease liabilities  134.2   143.9 Other long-term liabilities  484.0   533.8    1,305.6   1,592.5        Redeemable noncontrolling interests  92.4   92.3 Equity      Total Greif, Inc. equity  2,999.4   2,914.9 Noncontrolling interests  38.4   37.5 Total equity  3,037.8   2,952.4   $5,704.2  $5,766.8  GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS*
UNAUDITED  Three months ended June 30, Nine months ended June 30,(in millions)  2026   2025   2026   2025 CASH FLOWS FROM OPERATING ACTIVITIES:        Net income $81.6  $61.0  $278.8  $134.1 Depreciation, depletion and amortization  57.4   67.0   174.9   200.9 Asset impairments  1.4   7.2   6.1   24.7 Pension settlement charges  0.3   —   1.9   — Deferred income tax expense (benefit)  3.8   —   (47.0)  (86.1)Gain on disposal of businesses, net  1.4   0.3   4.5   1.6 Gain (loss) on disposals of properties, plants and equipment, net  0.2   (3.3)  (217.2)  (5.6)Other non-cash adjustments to net income  13.3   15.3   80.3   41.0 Debt extinguishment charges  —   —   0.7   — Operating working capital changes  (87.5)  (8.4)  (53.8)  (31.8)Increase (decrease) in cash from changes in other assets and liabilities  5.9   8.0   (59.2)  7.3 Net cash provided by (used in) operating activities  77.8   147.1   170.0   286.1 CASH FLOWS FROM INVESTING ACTIVITIES:        Acquisitions of companies, net of cash acquired  (54.6)  —   (59.9)  (1.2)Purchases of properties, plants and equipment  (28.7)  (11.6)  (118.5)  (92.9)Receipts for collection of loans receivable  15.0   —   15.0   — Proceeds from the sale of properties, plant and equipment and businesses  0.6   20.0   464.0   25.5 Payments for deferred purchase price of acquisitions  —   (0.7)  (0.6)  (1.9)Proceeds from hedging derivatives  —   —   —   22.5 Other  —   (0.1)  (0.3)  (3.7)Net cash provided by (used in) investing activities  (67.7)  7.6   299.7   (51.7)CASH FLOWS FROM FINANCING ACTIVITIES:        Proceeds (payments) on long-term debt, net  26.4   (64.1)  (169.2)  (31.0)Dividends paid to Greif, Inc. shareholders  (32.7)  (31.4)  (97.0)  (93.8)Payments for debt extinguishment and issuance costs  —   —   (2.8)  — Payments for share repurchases  (2.9)  —   (150.1)  — Tax withholding payments for stock-based awards  —   —   (9.8)  (7.4)Purchases of redeemable noncontrolling interest  —   (38.7)  —   (38.7)Other  (4.8)  (5.2)  (15.4)  (23.2)Net cash provided by (used in) financing activities  (14.0)  (139.4)  (444.3)  (194.1)Effects of exchange rates on cash  6.3   33.4   6.4   35.3 Net increase (decrease) in cash and cash equivalents  2.4   48.7   31.8   75.6 Cash and cash equivalents, beginning of period  286.1   243.3   256.7   216.4 Cash and cash equivalents, end of period $288.5  $292.0  $288.5  $292.0 
*Cash flows from Containerboard Business are included in the comparative period GREIF, INC. AND SUBSIDIARY COMPANIES
FINANCIAL HIGHLIGHTS BY SEGMENT
UNAUDITED  Three months ended June 30,
 Nine months ended June 30,
(in millions)  2026   2025   2026   2025 Net sales:            Customized Polymer Solutions $383.8  $337.9  $1,033.7  $954.8 Durable Metal Solutions  405.6   392.3   1,140.8   1,121.1 Sustainable Fiber Solutions  346.5   370.7   980.2   1,075.4 Innovative Closure Solutions(6)  29.7   25.0   78.5   69.7 Total net sales $1,165.6  $1,125.9  $3,233.2  $3,221.0 Gross profit:            Customized Polymer Solutions $91.1  $70.9  $223.0  $206.3 Durable Metal Solutions  90.9   88.1   250.9   240.9 Sustainable Fiber Solutions  73.1   85.1   209.6   227.5 Innovative Closure Solutions  17.5   11.9   38.7   29.2 Total gross profit $272.6  $256.0  $722.2  $703.9 Operating profit:            Customized Polymer Solutions $32.8  $8.4  $37.8  $27.3 Durable Metal Solutions  52.7   45.8   124.6   117.4 Sustainable Fiber Solutions  13.9   5.0   222.2   3.9 Innovative Closure Solutions  8.5   4.5   15.3   9.9 Total operating profit $107.9  $63.7  $399.9  $158.5 Adjusted EBITDA(7):            Customized Polymer Solutions $64.3  $37.1  $145.6  $109.0 Durable Metal Solutions  64.0   53.6   171.4   140.4 Sustainable Fiber Solutions  42.5   48.8   119.9   124.6 Innovative Closure Solutions  12.6   7.6   25.8   17.8 Total Adjusted EBITDA $183.4  $147.1  $462.7  $391.8 
(6) The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $51.4 million and $43.2 million for the third quarter of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 34.0 percent and 27.5 percent for the third quarter of 2026 and 2025, respectively.
(7) Adjusted EBITDA is defined as net income, plus interest expense, net, plus other (income) expense, net, plus non-cash pension settlement charges, plus debt extinguishment charges, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs. GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT ADJUSTED EBITDA(8)
UNAUDITED  Three months ended June 30, 2026(in millions) Customized Polymer Solutions Durable Metal Solutions Sustainable Fiber Solutions Innovative Closure Solutions ConsolidatedOperating profit (loss) $32.8   52.7   13.9   8.5   107.9 Less: Equity earnings of unconsolidated affiliates, net of tax  —   —   —   (0.6)  (0.6)Plus: Depreciation and amortization expense  24.9   7.5   23.3   1.7   57.4 Plus: Acquisition and integration related costs  1.5   —   —   —   1.5 Plus: Restructuring and other charges  3.5   2.9   4.2   1.5   12.1 Plus: Non-cash asset impairment charges  0.4   0.4   0.5   0.1   1.4 Plus: (Gain) loss on disposal of properties, plants and equipment, net  —   —   0.2   —   0.2 Plus: Other costs*  1.2   0.5   0.4   0.2   2.3 Adjusted EBITDA $64.3  $64.0  $42.5  $12.6  $183.4              Three months ended June 30, 2025(in millions) Customized Polymer Solutions Durable Metal Solutions Sustainable Fiber Solutions Innovative Closure Solutions ConsolidatedOperating profit (loss) $8.4   45.8   5.0   4.5   63.7 Less: Equity earnings of unconsolidated affiliates, net of tax  —   —   —   (0.4)  (0.4)Plus: Depreciation, depletion and amortization expense  24.0   7.3   25.0   1.7   58.0 Plus: Acquisition and integration related costs  2.0   —   —   —   2.0 Plus: Restructuring and other charges  2.6   2.6   11.9   0.9   18.0 Plus: Non-cash asset impairment charges  —   0.1   7.1   —   7.2 Plus: (Gain) loss on disposal of properties, plants and equipment, net  (0.2)  (2.7)  (0.6)  —   (3.5)Plus: (Gain) loss on disposal of businesses, net  —   0.3   —   —   0.3 Plus: Other costs*  0.3   0.2   0.4   0.1   1.0 Adjusted EBITDA $37.1  $53.6  $48.8  $7.6  $147.1 
*includes fiscal year-end change costs and share-based compensation impact of disposals of businesses   Nine months ended June 30, 2026(in millions) Customized Polymer Solutions
 Durable Metal Solutions Sustainable Fiber Solutions Integrated Solutions ConsolidatedOperating profit $37.8   124.6   222.2   15.3  399.9 Less: Equity earnings of unconsolidated affiliates, net of tax  —   —   —   (1.2) (1.2)Plus: Depreciation and amortization expense  77.8   22.7   70.0   4.4  174.9 Plus: Acquisition and integration related costs  2.9   —   —   0.7  3.6 Plus: Restructuring and other charges  9.7   11.3   19.3   1.7  42.0 Plus: Non-cash asset impairment charges  0.4   0.4   5.2   0.1  6.1 Plus: (Gain) loss on disposal of properties, plants and equipment, net  0.4   (2.5)  (215.1)  —  (217.2)Plus: (Gain) loss on disposal of businesses, net  0.5   —   —   —  0.5 Plus: Other costs*  16.1   14.9   18.3   2.4  51.7 Adjusted EBITDA $145.6  $171.4  $119.9  $25.8  462.7               Nine months ended June 30, 2025(in millions) Customized Polymer Solutions
 Durable Metal Solutions Sustainable Fiber Solutions Integrated Solutions ConsolidatedOperating profit (loss) $27.3   117.4   3.9   9.9  158.5 Less: Equity earnings of unconsolidated affiliates, net of tax  —   —   —   (1.3) (1.3)Plus: Depreciation, depletion and amortization expense  69.9   21.5   77.3   4.9  173.6 Plus: Acquisition and integration related costs  6.1   —   —   —  6.1 Plus: Restructuring and other charges  4.3   4.0   20.9   1.2  30.4 Plus: Non-cash asset impairment charges  1.0   2.2   21.1   0.4  24.7 Plus: (Gain) loss on disposal of properties, plants and equipment, net  —   (6.6)  0.8   —  (5.8)Plus: (Gain) loss on disposal of businesses, net  —   1.6   —   —  1.6 Plus: Other costs*  0.4   0.3   0.6   0.1  1.4 Adjusted EBITDA $109.0  $140.4  $124.6  $17.8  391.8 
*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses
(8) Adjusted EBITDA is defined as net income, plus interest expense, net, plus non-cash pension settlement charges, plus debt extinguishment charges, plus other (income) expense, net, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs. However, because the Company does not calculate net income by segment, this table calculates Adjusted EBITDA by segment with reference to operating profit by segment, which, as demonstrated in the table of consolidated Adjusted EBITDA, is another method to achieve the same result.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED ADJUSTED EBITDA
UNAUDITED  Three months ended June 30, Nine months ended June 30,(in millions)  2026   2025   2026   2025 Net income $82.6  $36.9  $281.8  $73.3 Plus: Interest expense, net  7.7   15.8   27.4   47.2 Plus: Non-cash pension settlement charges  0.3   —   1.9   — Plus: Debt extinguishment charges  —   —   2.5   — Plus: Other (income) expense, net  —   1.4   4.8   2.5 Plus: Income tax (benefit) expense  17.9   10.0   82.7   36.8 Plus: Equity earnings of unconsolidated affiliates, net of tax  (0.6)  (0.4)  (1.2)  (1.3)Operating profit $107.9  $63.7  $399.9  $158.5 Less: Equity earnings of unconsolidated affiliates, net of tax  (0.6)  (0.4)  (1.2)  (1.3)Plus: Depreciation, depletion and amortization expense  57.4   58.0   174.9   173.6 Plus: Acquisition and integration related costs  1.5   2.0   3.6   6.1 Plus: Restructuring and other charges  12.1   18.0   42.0   30.4 Plus: Non-cash asset impairment charges  1.4   7.2   6.1   24.7 Plus: (Gain) loss on disposal of properties, plants and equipment, net  0.2   (3.5)  (217.2)  (5.8)Plus: (Gain) loss on disposal of businesses, net  —   0.3   0.5   1.6 Plus: Other costs*  2.3   1.0   51.7   1.4 Adjusted EBITDA $183.4  $147.1  $462.7  $391.8 
*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
ADJUSTED FREE CASH FLOW(9)
UNAUDITED  Three months ended June 30, Nine months ended June 30,(in millions)  2026   2025   2026   2025 Net cash provided by (used in) operating activities $77.8  $147.1  $170.0  $286.1 Cash paid for purchases of properties, plants and equipment  (28.7)  (11.6)  (118.5)  (92.9)Free cash flow $49.1  $135.5  $51.5  $193.2 Cash paid for acquisition and integration related costs  1.5   3.2   3.6   6.1 Cash paid for integration related ERP systems and equipment(10)  3.6   2.1   9.3   4.6 Cash paid for taxes related to Containerboard Business divestment  —   —   13.7   — Cash paid for taxes related to Soterra Assets divestment  —   —   100.0   — Cash paid for other nonrecurring costs(11)  3.5   3.6   17.9   3.7 Adjusted free cash flow $57.7  $144.4  $196.0  $207.6 
(9) Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition and integration related costs, plus cash paid for integration related ERP systems and equipment, plus cash paid for taxes related to Containerboard Business divestment, plus cash paid for taxes related to Soterra Assets divestment, plus cash paid for other nonrecurring costs. The cash flows from Containerboard Business are included within adjusted free cash flow for the comparative period.
(10) Cash paid for integration related ERP systems and equipment is defined as cash paid for ERP systems and equipment required to bring the acquired facilities to Greif’s standards.
(11) Cash paid for other nonrecurring costs is defined as cash paid for fiscal year-end change costs, cost optimization and debt issuance costs. GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET INCOME, CLASS A EARNINGS PER SHARE AND TAX RATE EXCLUDING ADJUSTMENTS
UNAUDITED(in millions, except for per share amounts)Income before Income Tax (Benefit) Expense and Equity Earnings of Unconsolidated Affiliates, net Income Tax (Benefit) Expense Equity Earnings Non-Controlling Interest Net Income (Loss) Attributable to Greif, Inc. Diluted Class A Earnings Per Share Tax RateThree months ended June 30, 2026$99.9  $17.9  $(0.6) $3.8 $78.8  $1.37  17.9%Acquisition and integration related costs 1.5   0.4   —   —  1.1   0.02   Restructuring and other charges 12.1   2.8   —   —  9.3   0.16   Non-cash asset impairment charges 1.4   —   —   —  1.4   0.02   (Gain) loss on disposal of properties, plants and equipment, net 0.2   (0.1)  —   —  0.3   0.01   (Gain) loss on disposal of businesses, net —   (0.1)  —   —  0.1   —   Non-cash pension settlement charges 0.3   0.1   —   —  0.2   —   Other costs* 2.3   0.2   —   —  2.1   0.03   Excluding adjustments$117.7  $21.2  $(0.6) $3.8 $93.3  $1.61  18.0%              Three months ended June 30, 2025$46.5  $10.0  $(0.4) $6.2 $30.7  $0.53  21.5%Acquisition and integration related costs 2.0   0.4   —   —  1.6   0.03   Restructuring and other charges 18.0   4.3   —   —  13.7   0.23   Non-cash asset impairment charges 7.2   1.6   —   —  5.6   0.10   (Gain) loss on disposal of properties, plants and equipment, net (3.5)  (0.9)  —   —  (2.6)  (0.04)  (Gain) loss on disposal of businesses, net 0.3   0.1   —   —  0.2   —   Other costs* 1.0   0.3   —   —  0.7   0.01   Excluding adjustments$71.5  $15.8  $(0.4) $6.2 $49.9  $0.86  22.1%              Nine months ended June 30, 2026$363.3  $82.7  $(1.2) $13.8 $268.0  $4.64  22.8%Acquisition and integration related costs 3.6   0.9   —   —  2.7   0.05   Restructuring and other charges 42.0   10.0   —   0.2  31.8   0.54   Non-cash asset impairment charges 6.1   1.2   —   —  4.9   0.08   (Gain) loss on disposal of properties, plants and equipment, net (217.2)  (49.6)  —   —  (167.6)  (2.86)  (Gain) loss on disposal of businesses, net 0.5   0.1   —   —  0.4   0.01   Non-cash pension settlement charges 1.9   0.5   —   —  1.4   0.02   Debt extinguishment charges 2.5   0.6   —   —  1.9   0.03   Other costs* 51.7   12.4   —   —  39.3   0.67   Excluding adjustments$254.4  $58.8  $(1.2) $14.0 $182.8  $3.18  23.1%              Nine months ended June 30, 2025$108.8  $36.8  $(1.3) $17.4 $55.9  $0.96  33.8%Acquisition and integration related costs 6.1   1.5   —   —  4.6   0.08   Restructuring and other charges 30.4   7.4   —   —  23.0   0.39   Non-cash asset impairment charges 24.7   5.8   —   —  18.9   0.33   (Gain) loss on disposal of properties, plants and equipment, net (5.8)  (1.4)  —   —  (4.4)  (0.06)  (Gain) loss on disposal of businesses, net 1.6   0.4   —   —  1.2   0.02   Other costs* 1.4   0.4   —   —  1.0   0.01   Excluding adjustments$167.2  $50.9  $(1.3) $17.4 $100.2  $1.73  30.4%
*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses The income‑tax effects of the non‑GAAP reconciling adjustments are calculated using the applicable statutory tax rate for each relevant jurisdiction and may include both current and deferred components, determined in a manner consistent with the nature of each adjustment. Non‑GAAP reconciling adjustments are presented on a gross (pre‑tax) basis, and the related income‑tax effects of those adjustments are disclosed separately from other tax items (e.g., discrete tax benefits or expenses). When a tax item could be viewed as both a discrete tax item and related to a non‑GAAP reconciling adjustment, the Company classifies the item in a single category for the period and does not double‑count the impact.

GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET DEBT
UNAUDITED(in millions) June 30, 2026 July 31, 2025Total debt $1,030.4  $2,717.0 Cash and cash equivalents  (288.5)  (285.2)Net debt $741.9  $2,431.8  GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
LEVERAGE RATIO
UNAUDITEDTrailing twelve month Credit Agreement EBITDA
(in millions) Trailing Twelve Months Ended 6/30/2026 Trailing Twelve Months Ended 7/31/2025(12)Net income $1,033.7  $213.9 Plus: Interest expense, net  55.1   146.5 Plus: Non-cash pension settlement charge  1.9   — Plus: Debt extinguishment charges  2.5   — Plus: Other (income) expense  10.3   3.6 Plus: Income tax (benefit) expense  469.1   69.8 Plus: Equity earnings of unconsolidated affiliates, net of tax  0.4   (2.5)Operating profit $1,573.0  $431.3 Less: Equity earnings of unconsolidated affiliates, net of tax  0.4   (2.5)Plus: Depreciation, depletion and amortization expense  234.1   265.6 Plus: Acquisition and integration related costs  5.7   7.8 Plus: Restructuring and other charges  76.9   46.3 Plus: Non-cash asset impairment charges  19.6   28.5 Plus: (Gain) loss on disposal of properties, plants and equipment, net  (220.9)  (6.1)Plus: (Gain) loss on disposal of businesses, net  (1,091.8)  2.7 Plus: Other costs*  80.0   (0.4)Plus: Other income (expense)  (10.3)  (3.6)Credit Agreement EBITDA before adjustments $665.9  $774.6 Credit Agreement adjustments to EBITDA(13)  (44.3)  (3.1)Credit Agreement EBITDA $621.6  $771.5      Adjusted net debt
(in millions) For the Period Ended 6/30/2026 For the Period Ended 7/31/2025Total debt $1,030.4  $2,717.0 Cash and cash equivalents  (288.5)  (285.2)Net debt $741.9  $2,431.8 Credit Agreement adjustments to debt(14)  (73.9)  (49.6)Adjusted net debt $668.0  $2,382.2      Leverage ratio(15)  1.1
x
  3.1
x

*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses
(12) Represents trailing twelve months amounts as filed in the prior year quarter ended July 31, 2025.
(13) Adjustments to EBITDA are specified by the 2026 Credit Agreement and include certain equity earnings of unconsolidated affiliates, net of tax, certain acquisition savings, deferred financing costs, capitalized interest, income and expense in connection with asset dispositions, and other items.
(14) Adjustments to net debt are specified by the 2026 Credit Agreement and include the European accounts receivable program, letters of credit, and balances for swap contracts and other items.
(15) Leverage ratio is defined as Credit Agreement adjusted net debt divided by Credit Agreement adjusted EBITDA.

CINCINNATI, July 28, 2026 (GLOBE NEWSWIRE) -- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its second quarter ended June 30, 2026, versus the comparable prior-year period.

Results for Quarter Ended June 30, 2026

Consolidated operating results:

Revenue increased 8.8% to $673.3 millionGAAP Diluted Earnings-per-Share (EPS) of $5.13, an increase of 43.7%Adjusted Diluted EPS of $6.06, an increase of 41.9% VITAS segment operating results:

Net Patient Revenue of $443.3 million, an increase of 11.9%Average Daily Census (ADC) of 23,687, an increase of 6.1%Admissions of 19,125, an increase of 9.0%Net Income, excluding certain discrete items, of $61.3 million, an increase of 60.5%Adjusted EBITDA, excluding Medicare Cap, of $80.6 million, an increase of 20.6%Adjusted EBITDA margin, excluding Medicare Cap, of 18.2%, an increase of 196-basis points Roto-Rooter segment operating results:

Revenue of $229.9 million, an increase of 3.3%Net Income, excluding certain discrete items, of $33.8 million, essentially flatAdjusted EBITDA of $48.5 million, essentially flatAdjusted EBITDA margin of 21.1%, a decline of 77-basis points VITAS

VITAS net revenue was $443.3 million in the second quarter of 2026, which is an increase of 11.9% when compared to the prior-year period. This revenue increase is comprised primarily of a 6.1% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.4%. Acuity mix shift negatively impacted revenue growth 115-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes positively impacted revenue growth by 455-basis points.

Total VITAS admissions increased 9.0% in the second quarter of 2026 compared to the second quarter of 2025.

In the second quarter of 2026, VITAS accrued $500,000 in Medicare Cap billing limitation. This compares to the Medicare Cap billing limitation recorded in the second quarter of 2025 of $16.4 million. No Medicare Cap billing limitation was recorded in the second quarter of 2026 for the Florida combined program, and none is anticipated for the 2026 fiscal period.

Of VITAS’ 33 Medicare provider numbers, 22 provider numbers have an anticipated full-year Medicare Cap cushion of 10% or greater, seven provider numbers have a cushion between 0% and 10%, and four provider numbers have a Medicare Cap billing limitation totaling $7.0 million.

Average revenue per patient per day in the second quarter of 2026 was $209.98 which is 143-basis points above the prior-year period. Reimbursement for routine home care and high-acuity care averaged $188.62 and $1,152.14, respectively. During the quarter, high-acuity days-of-care were 2.2% of total days of care, a decline of 24-basis points when compared to the prior-year quarter.

The second quarter 2026 gross margin, excluding Medicare Cap, was 23.9%, a 164-basis point increase from the same period of 2025. Selling, general and administrative expenses were $26.1 million in the second quarter of 2026 compared to $25.1 million in the prior- year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $80.6 million in the quarter, an increase of 20.6% when compared to the prior-year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 18.2%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $229.9 million in the second quarter of 2026, an increase of 3.3%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $56.8 million, an increase of 6.8% from the prior-year period. This aggregate commercial revenue change consisted of plumbing increasing 11.9%, drain cleaning increasing 6.9%, water restoration increasing 3.7% and excavation increasing 2.3%.

Roto-Rooter branch residential revenue in the quarter totaled $159.1 million, an increase of 1.7%, over the prior-year period. This aggregate residential revenue change consisted of excavation increasing 11.1%, plumbing increasing 3.3%, and drain cleaning increasing 1.3%, offset by a decline in water restoration of 6.7%.

In the second quarter of 2026, revenue from independent contractors was $17.1 million which is a decline of 1.9% as compared to the same period of 2025.

Roto-Rooter’s second quarter 2026 gross margin was 50.4%. This compares to the prior-year quarter’s gross margin of 49.0%. Roto-Rooter’s selling, general and administrative expenses were $67.4 million in the quarter, which is an increase of 11.3% compared to the second quarter of 2025.

Adjusted EBITDA in the second quarter of 2026 totaled $48.5 million, essentially flat when compared to the second quarter of 2025. The Adjusted EBITDA margin in the quarter was 21.1% which represents a 77-basis point decline from the second quarter of 2025.

Chemed Consolidated

As of June 30, 2026, Chemed had total cash and cash equivalents of $40.2 million and $140.0 million in long-term debt.

In April 2026, Chemed entered into a new five-year $450 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consists of a $450 million revolving line of credit and a $250 million expansion feature. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $262.7 million undrawn borrowing capacity under the Credit Agreement after excluding $47.3 million for Letters of Credit.

During the quarter, the Company repurchased 210,000 shares of Chemed stock for $89.8 million which equates to a cost per share of $427.81. Over the trailing 12-months, the Company has repurchased 1,517,500 shares of Chemed stock at an average price of $423.63 per share. This equates to a reduction in outstanding Chemed shares of approximately 10.5% over that period. As of June 30, 2026, there was approximately $139.8 million of remaining share repurchase authorization under its plan.

Guidance Update

Although, historically, we do not give quarterly updates, our guidance was revised in conjunction with the first quarter 2026 earnings release due to the materially improved performance of VITAS, coupled with the level of share repurchases. We have updated the guidance again mainly to continue our normal, historical cadence of updating expectations at the mid-year earnings release. Barring any unusual developments, updating guidance once per year in conjunction with our second quarter press release is our on-going expectation. Further operational detail will be provided during the investor conference call.

VITAS’ initiatives to return to a normal growth pattern after managing the 2025 Medicare Cap issue progressed more quickly than originally anticipated and continue to provide higher than expected growth in the business. The following shows the updated key guidance metrics compared to the guidance metrics provided in the first quarter 2026 earnings release:

  Revised Range  Range Q1 ReleaseADC growth 5.75% - 6.25% 4.5% - 5.5%     Revenue growth, excluding Medicare Cap 8.25% - 9.25% 6.5% - 7.5%     Medicare Cap billing limitation (full year) $7,000 $9,500     EBITDA margin, excluding Medicare Cap 19.0% - 19.5% 18.0% - 18.5%
Roto-Rooter performed in-line with our expectations and therefore, full year guidance for the segment remains unchanged. Full year anticipated revenue growth is 3.0% to 3.5%. Estimated adjusted EBITDA margin is 21.5% to 22.5%.

Based on the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, are estimated to be in the range of $25.00 to $25.75. This compares to the guidance given in conjunction with the first quarter of 2026 press release of $24.00 to $24.75 per diluted share. The mid-point of the revised guidance represents a 17.8% increase from 2025 adjusted earnings per diluted share of $21.55. The revised guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.5 million shares.  

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday July 29, 2026, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/u8u2qjst.

Participants may also register via teleconference at:
https://register-conf.media-server.com/register/BI55b09312fbd04f76b526dfcc5f7e174e.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in the Chemed’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its Quarterly Reports filed in 2026. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CONTACT:
Michael D. Witzeman
(513) 762-6714

CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)(unaudited)               Three Months Ended June 30, Six Months Ended June 30,  2026
 2025
 2026
 2025
Service revenues and sales $673,251  $618,798  $1,330,764   1,265,741 Cost of services provided and goods sold  451,780   434,105   893,529   864,635 Selling, general and administrative expenses (aa)  115,203   100,323   229,524   205,910 Depreciation  14,267   13,689   28,570   27,134 Amortization  2,719   2,571   5,289   5,143 Other operating expense  78   26   70   77 Total costs and expenses  584,047   550,714   1,156,982   1,102,899 Income from operations  89,204   68,084   173,782   162,842 Interest expense  (1,789)  (443)  (2,301)  (772)Other income--net (bb)  3,914   3,474   8,688   4,719 Income before income taxes  91,329   71,115   180,169   166,789 Income taxes  (23,626)  (18,622)  (46,164)  (42,539)Net income $67,703  $52,493  $134,005  $124,250 Earnings Per Share            Net income $5.14  $3.60  $9.98  $8.51 Average number of shares outstanding  13,174   14,591   13,423   14,606 Diluted Earnings Per Share            Net income $5.13  $3.57  $9.97  $8.43 Average number of shares outstanding  13,199   14,703   13,442   14,733              (aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):               Three Months Ended June 30, Six Months Ended June 30,  2026
 2025
 2026
 2025
SG&A expenses before long-term incentive compensation            and the impact of market value adjustments related to            deferred compensation plans $109,256  $98,552  $218,187  $202,312 Market value adjustments related to deferred             compensation trusts  3,699   918   7,584   88 Long-term incentive compensation  2,248   853   3,753   3,510 Total SG&A expenses $115,203  $100,323  $229,524  $205,910              (bb)    Other income--net comprises (in thousands):        Three Months Ended June 30, Six Months Ended June 30,  2026
 2025
 2026
 2025
             Market value adjustments related to deferred            compensation trusts $3,699  $918  $7,584  $88 Interest income  214   2,555   1,104   4,631 Other  1   1   -   - Total other income--net $3,914  $3,474  $8,688  $4,719               CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED BALANCE SHEETS(in thousands, except per share data)(unaudited)         June 30,  2026
 2025
Assets      Current assets      Cash and cash equivalents $40,222  $249,904 Accounts receivable less allowances  188,634   184,880 Inventories  7,630   9,148 Prepaid income taxes  17,646   14,239 Prepaid expenses  37,103   33,206 Total current assets  291,235   491,377 Investments of deferred compensation plans held in trust  148,153   129,560 Properties and equipment, at cost less accumulated depreciation  208,499   202,281 Lease right of use asset  142,535   131,948 Identifiable intangible assets less accumulated amortization  78,601   87,360 Goodwill  699,398   666,996 Other assets  11,164   8,325 Total Assets $1,579,585  $1,717,847 Liabilities      Current liabilities      Accounts payable $84,713  $50,864 Accrued insurance  72,455   66,888 Accrued compensation  63,794   54,688 Short-term lease liability  41,277   43,700 Other current liabilities  57,607   47,746 Total current liabilities  319,846   263,886 Deferred income taxes  15,050   12,703 Deferred compensation liabilities  146,986   127,699 Long-term debt  140,000   - Long-term lease liability  113,516   101,861 Other liabilities  13,677   13,213 Total Liabilities  749,075   519,362 Stockholders' Equity      Capital stock  37,613   37,593 Paid-in capital  1,617,125   1,576,165 Retained earnings  3,073,331   2,831,540 Treasury stock, at cost  (3,900,000)  (3,249,115)Deferred compensation payable in Company stock  2,441   2,302 Total Stockholders' Equity  830,510   1,198,485 Total Liabilities and Stockholders' Equity $1,579,585  $1,717,847         CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)         For the Six Months Ended June 30,  2026
 2025
Cash Flows from Operating Activities      Net income $134,005  $124,250 Adjustments to reconcile net income to net cash provided      by operating activities:      Depreciation and amortization  33,859   32,277 Stock option expense  18,302   18,307 Benefit for deferred income taxes  (4,262)  (13,243)Noncash long-term incentive compensation  3,633   3,273 Noncash directors' compensation  1,191   1,123 Legal settlements  548   - Amortization of debt issuance costs  163   160 Changes in operating assets and liabilities, excluding      amounts acquired in business combinations:      Increase in accounts receivable  (6,716)  (13,466)Increase in inventories  (87)  (955)Increase in prepaid expenses  (10,285)  (7,232)Increase/(decrease) in accounts payable and      other current liabilities  9,174   (12,449)Change in current income taxes  (8,985)  (10,764)Net change in lease assets and liabilities  292   (72)(Increase)/decrease in other assets  (9,489)  48,426 Increase in other liabilities  11,191   1,521 Other sources  498   194 Net cash provided by operating activities  173,032   171,350 Cash Flows from Investing Activities      Business combinations, net of cash acquired  (33,540)  (225)Capital expenditures  (32,639)  (29,088)Proceeds from sale of fixed assets  422   480 Other uses  (270)  (322)Net cash used by investing activities  (66,027)  (29,155)Cash Flows from Financing Activities      Proceeds from revolving line of credit  491,480   - Payments on revolving line of credit  (351,480)  - Purchases of treasury stock  (287,521)  (76,168)Change in cash overdrafts payable  23,305   309 Dividends paid  (16,049)  (14,542)Proceeds from exercise of stock options  2,731   27,152 Capital stock surrendered to pay taxes on stock-based compensation  (1,482)  (8,484)Debt issuance costs  (1,349)  - Other (uses)/sources  (933)  1,092 Net cash used by financing activities  (141,298)  (70,641)(Decrease)/increase in Cash and Cash Equivalents  (34,293)  71,554 Cash and cash equivalents at beginning of year  74,515   178,350 Cash and cash equivalents at end of period $40,222  $249,904         CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025(in thousands)(unaudited)        Chemed  VITAS Roto-Rooter Corporate Consolidated2026 (a)            Service revenues and sales $443,341  $229,910  $-  $673,251 Cost of services provided and goods sold  337,691   114,089   -   451,780 Selling, general and administrative expenses  26,105   67,373   21,725   115,203 Depreciation  5,781   8,474   12   14,267 Amortization  27   2,692   -   2,719 Other operating expense  28   50   -   78 Total costs and expenses  369,632   192,678   21,737   584,047 Income/(loss) from operations  73,709   37,232   (21,737)  89,204 Interest expense  (54)  (185)  (1,550)  (1,789)Intercompany interest income/(expense)  6,480   4,575   (11,055)  - Other income—net  66   10   3,838   3,914 Income/(loss) before income taxes  80,201   41,632   (30,504)  91,329 Income taxes  (19,290)  (9,719)  5,383   (23,626)Net income/(loss) $60,911  $31,913  $(25,121) $67,703              2025 (b)            Service revenues and sales $396,201  $222,597  $-  $618,798 Cost of services provided and goods sold  320,644   113,461   -   434,105 Selling, general and administrative expenses  25,085   60,536   14,702   100,323 Depreciation  5,314   8,363   12   13,689 Amortization  26   2,545   -   2,571 Other operating expense/(income)  55   (29)  -   26 Total costs and expenses  351,124   184,876   14,714   550,714 Income/(loss) from operations  45,077   37,721   (14,714)  68,084 Interest expense  (47)  (129)  (267)  (443)Intercompany interest income/(expense)  5,454   3,970   (9,424)  - Other income—net  61   23   3,390   3,474 Income/(loss) before income taxes  50,545   41,585   (21,015)  71,115 Income taxes  (12,326)  (9,671)  3,375   (18,622)Net income/(loss) $38,219  $31,914  $(17,640) $52,493                           The "Footnotes to Financial Statements" are integral parts of this financial information.             CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025(in thousands)(unaudited)                  Chemed  VITAS Roto-Rooter Corporate Consolidated2026 (a)            Service revenues and sales $863,358  $467,406  $-  $1,330,764 Cost of services provided and goods sold  663,157   230,372   -   893,529 Selling, general and administrative expenses  52,213   135,302   42,009   229,524 Depreciation  11,693   16,853   24   28,570 Amortization  53   5,236   -   5,289 Other operating expense/(income)  80   (9)  (1)  70 Total costs and expenses  727,196   387,754   42,032   1,156,982 Income/(loss) from operations  136,162   79,652   (42,032)  173,782 Interest expense  (104)  (321)  (1,876)  (2,301)Intercompany interest income/(expense)  12,717   9,088   (21,805)  - Other income—net  161   25   8,502   8,688 Income/(loss) before income taxes  148,936   88,444   (57,211)  180,169 Income taxes  (35,818)  (20,747)  10,401   (46,164)Net income/(loss) $113,118  $67,697  $(46,810) $134,005              2025 (b)            Service revenues and sales $803,600  $462,141  $-  $1,265,741 Cost of services provided and goods sold  633,451   231,184   -   864,635 Selling, general and administrative expenses  51,624   123,184   31,102   205,910 Depreciation  10,509   16,601   24   27,134 Amortization  52   5,091   -   5,143 Other operating expense/(income)  119   (42)  -   77 Total costs and expenses  695,755   376,018   31,126   1,102,899 Income/(loss) from operations  107,845   86,123   (31,126)  162,842 Interest expense  (95)  (261)  (416)  (772)Intercompany interest income/(expense)  10,750   7,900   (18,650)  - Other income—net  110   32   4,577   4,719 Income/(loss) before income taxes  118,610   93,794   (45,615)  166,789 Income taxes  (30,361)  (21,936)  9,758   (42,539)Net income/(loss) $88,249  $71,858  $(35,857) $124,250                           The "Footnotes to Financial Statements" are integral parts of this financial information.                           CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THREE MONTHS ENDED JUNE 30, 2026 AND 2025(in thousands)(unaudited)        Chemed  VITAS Roto-Rooter Corporate Consolidated2026            Net income/(loss) $60,911  $31,913  $(25,121) $67,703 Add/(deduct):            Interest expense  54   185   1,550   1,789 Income taxes  19,290   9,719   (5,383)  23,626 Depreciation  5,781   8,474   12   14,267 Amortization  27   2,692   -   2,719 EBITDA  86,063   52,983   (28,942)  110,104 Add/(deduct):            Intercompany interest expense/(income)  (6,480)  (4,575)  11,055   - Interest income  (66)  (10)  (138)  (214)Stock option expense  -   -   9,052   9,052 Long-term incentive compensation  -   -   2,248   2,248 Legal settlements  548   -   -   548 Acquisition expense  8   60   -   68 Adjusted EBITDA $80,073  $48,458  $(6,725) $121,806              2025            Net income/(loss) $38,219  $31,914  $(17,640) $52,493 Add/(deduct):            Interest expense  47   129   267   443 Income taxes  12,326   9,671   (3,375)  18,622 Depreciation  5,314   8,363   12   13,689 Amortization  26   2,545   -   2,571 EBITDA  55,932   52,622   (20,736)  87,818 Add/(deduct):            Intercompany interest expense/(income)  (5,454)  (3,970)  9,424   - Interest income  (61)  (23)  (2,472)  (2,556)Stock option expense  -   -   9,216   9,216 Long-term incentive compensation  -   -   853   853 Adjusted EBITDA $50,417  $48,629  $(3,715) $95,331              The "Footnotes to Financial Statements" are integral parts of this financial information.             CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025(in thousands)(unaudited)           Chemed  VITAS Roto-Rooter Corporate Consolidated2026            Net income/(loss) $113,118  $67,697  $(46,810) $134,005 Add/(deduct):            Interest expense  104   321   1,876   2,301 Income taxes  35,818   20,747   (10,401)  46,164 Depreciation  11,693   16,853   24   28,570 Amortization  53   5,236   -   5,289 EBITDA  160,786   110,854   (55,311)  216,329 Add/(deduct):            Intercompany interest expense/(income)  (12,717)  (9,088)  21,805   - Interest income  (162)  (25)  (917)  (1,104)Stock option expense  -   -   18,302   18,302 Long-term incentive compensation  -   -   3,753   3,753 Legal settlements  548   -   -   548 Acquisition expense  8   226   -   234 Adjusted EBITDA $148,463  $101,967  $(12,368) $238,062 2025            Net income/(loss) $88,249  $71,858  $(35,857) $124,250 Add/(deduct):            Interest expense  95   261   416   772 Income taxes  30,361   21,936   (9,758)  42,539 Depreciation  10,509   16,601   24   27,134 Amortization  52   5,091   -   5,143 EBITDA  129,266   115,747   (45,175)  199,838 Add/(deduct):            Intercompany interest expense/(income)  (10,750)  (7,900)  18,650   - Interest income  (110)  (33)  (4,489)  (4,632)Stock option expense  -   -   18,307   18,307 Long-term incentive compensation  -   -   3,510   3,510 Adjusted EBITDA $118,406  $107,814  $(9,197) $217,023              The "Footnotes to Financial Statements" are integral parts of this financial information.              CHEMED CORPORATION AND SUBSIDIARY COMPANIESRECONCILIATION OF ADJUSTED NET INCOME(in thousands, except per share data)(unaudited)                    Three Months Ended June 30, Six Months Ended June 30,  2026
 2025
 2026
 2025
Net income as reported $67,703  $52,493  $134,005  $124,250 Add/(deduct) pre-tax cost of:            Stock option expense  9,052   9,216   18,302   18,307 Amortization of reacquired franchise rights  2,352   2,352   4,704   4,704 Long-term incentive compensation  2,248   853   3,753   3,510 Legal settlements  548   -   548   - Acquisition expense  68   -   234   - Add/(deduct) tax impacts:            Tax impact of the above pre-tax adjustments (1)  (2,377)  (2,143)  (4,626)  (4,462)Excess tax expenses/(benefits) on stock compensation  445   (50)  501   (513)Adjusted net income $80,039  $62,721  $157,421  $145,796              Diluted Earnings Per Share As Reported            Net income $5.13  $3.57  $9.97  $8.43 Average number of shares outstanding  13,199   14,703   13,442   14,733              Adjusted Diluted Earnings Per Share            Adjusted net income $6.06  $4.27  $11.71  $9.90 Average number of shares outstanding  13,199   14,703   13,442   14,733              (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.             The "Footnotes to Financial Statements" are integral parts of this financial information.              CHEMED CORPORATION AND SUBSIDIARY COMPANIESOPERATING STATISTICS FOR VITAS SEGMENT(unaudited) Three Months Ended June 30,  For the Six Months Ended June 30,OPERATING STATISTICS2026
 2025
  2026
 2025
Net revenue ($000) (c)            Homecare$391,348  $358,042   $762,438  $709,608 Inpatient 35,673   33,023    71,599   67,045 Continuous care 19,396   23,640    37,530   48,276 Other 6,206   5,747    11,783   11,092 Subtotal$452,623  $420,452   $883,350  $836,021 Room and board, net (3,938)  (3,892)   (7,196)  (7,417)Contractual allowances (4,844)  (3,984)   (9,921)  (6,304)Medicare cap allowance (500)  (16,375)   (2,875)  (18,700)Net Revenue$443,341  $396,201   $863,358  $803,600 Net revenue as a percent of total before Medicare cap allowance            Homecare 86.5%  85.2%   86.4%  84.9%Inpatient 7.9   7.9    8.1   8.0 Continuous care 4.3   5.6    4.2   5.8 Other 1.3   1.3    1.3   1.3 Subtotal 100.0   100.0    100.0   100.0 Room and board, net (0.9)  (0.9)   (0.9)  (0.9)Contractual allowances (1.1)  (0.9)   (1.1)  (0.8)Medicare cap allowance (0.1)  (3.9)   (0.3)  (2.2)Net Revenue 97.9%  94.3%   97.7%  96.1%Days of care            Homecare 1,792,360   1,662,455    3,483,979   3,295,024 Nursing home 303,053   307,158    597,871   614,266 Respite 12,307   11,440    23,182   21,435 Subtotal routine homecare and respite 2,107,720   1,981,053    4,105,032   3,930,725 Inpatient 29,703   28,213    60,177   57,917 Continuous care 18,094   21,647    35,382   44,267 Total 2,155,517   2,030,913    4,200,591   4,032,909              Number of days in relevant time period 91   91    181   181 Average daily census ("ADC") (days)            Homecare 19,697   18,269    19,249   18,205 Nursing home 3,330   3,375    3,303   3,394 Respite 135   126    128   118 Subtotal routine homecare and respite 23,162   21,770    22,680   21,717 Inpatient 326   310    333   320 Continuous care 199   238    195   244 Total 23,687   22,318    23,208   22,281              Total Admissions 19,125   17,545    38,519   35,684 Total Discharges 18,167   17,845    36,704   35,583 Average length of stay (days) 101.2   137.1    101.9   127.9 Median length of stay (days) 16.0   20.0    15.0   18.0              ADC by major diagnosis            Cerebro 44.2%  44.4%   44.4%  44.6%Neurological 11.1   12.1    11.2   12.2 Cancer 9.5   9.7    9.5   9.6 Cardio 16.6   16.2    16.5   16.1 Respiratory 8.0   7.5    7.8   7.3 Other 10.6   10.1    10.6   10.2 Total 100.0%  100.0%   100.0%  100.0%Admissions by major diagnosis            Cerebro 27.3%  26.7%   27.1%  27.6%Neurological 7.1   7.2    7.0   6.8 Cancer 24.7   26.6    24.1   25.6 Cardio 15.2   14.9    15.5   15.0 Respiratory 11.8   10.7    12.1   11.1 Other 13.9   13.9    14.2   13.9 Total 100.0%  100.0%   100.0%  100.0%             Estimated uncollectible accounts as a percent of revenues 0.7%  1.0%   1.1%  0.8%             Accounts receivable --            Days of revenue outstanding-excluding unapplied Medicare payments39.7   37.5    n.a.  n.a.Days of revenue outstanding-including unapplied Medicare payments26.9   26.9    n.a.  n.a.              CHEMED CORPORATION AND SUBSIDIARY COMPANIESFOOTNOTES TO FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025(unaudited)              (a)Included in the results of operations for 2026 are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):               Three Months Ended June 30, 2026   VITAS Roto-Rooter Corporate Consolidated               Stock option expense $-  $-  $(9,052) $(9,052) Amortization of reacquired franchise agreements  -   (2,352)  -   (2,352) Long-term incentive compensation  -   -   (2,248)  (2,248) Legal settlements  (548)  -   -   (548) Acquisition expense  (8)  (60)  -   (68) Pretax impact on earnings  (556)  (2,412)  (11,300)  (14,268) Excess tax expenses on stock compensation  -   -   (445)  (445) Income tax benefit on the above  135   562   1,680   2,377  After-tax impact on earnings $(421) $(1,850) $(10,065) $(12,336)                 Six Months Ended June 30, 2026   VITAS Roto-Rooter Corporate Consolidated               Stock option expense $-  $-  $(18,302) $(18,302) Amortization of reacquired franchise agreements  -   (4,704)  -   (4,704) Long-term incentive compensation  -   -   (3,753)  (3,753) Legal settlements  (548)  -   -   (548) Acquisition expense  (8)  (226)  -   (234) Pretax impact on earnings  (556)  (4,930)  (22,055)  (27,541) Excess tax expenses on stock compensation  -   -   (501)  (501) Income tax benefit on the above  135   1,149   3,342   4,626  After-tax impact on earnings $(421) $(3,781) $(19,214) $(23,416)              (b)Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):               Three Months Ended June 30, 2025   VITAS Roto-Rooter Corporate Consolidated               Stock option expense $-  $-  $(9,216) $(9,216) Amortization of reacquired franchise agreements  -   (2,352)  -   (2,352) Long-term incentive compensation  -   -   (853)  (853) Pretax impact on earnings  -   (2,352)  (10,069)  (12,421) Excess tax benefits on stock compensation  -   -   50   50  Income tax benefit on the above  -   546   1,597   2,143  After-tax impact on earnings $-  $(1,806) $(8,422) $(10,228)                 Six Months Ended June 30, 2025   VITAS Roto-Rooter Corporate Consolidated               Stock option expense $-  $-  $(18,307) $(18,307) Amortization of reacquired franchise agreements  -   (4,704)  -   (4,704) Long-term incentive compensation  -   -   (3,510)  (3,510) Pretax impact on earnings  -   (4,704)  (21,817)  (26,521) Excess tax benefits on stock compensation  -   -   513   513  Income tax benefit on the above  -   1,091   3,371   4,462  After-tax impact on earnings $-  $(3,613) $(17,933) $(21,546)                            (c)VITAS has 13 large (greater than 450 ADC), 24 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 22 provider numbers have a Medicare cap cushion of greater than 10%, seven provider numbers have a Medicare cap cushion between 0% and 10%, and four provider numbers have a Medicare cap liability.  

, /PRNewswire/ -- As global threats become more complex, contested and fast-moving, U.S. airmen need timely intelligence that is trusted and operationally relevant. Leidos (NYSE: LDOS) has been awarded a new task order by the U.S. Air Force's Air Combat Command (ACC) Acquisition Management and Integration Center (AMIC) to continue delivering intelligence, surveillance and reconnaissance (ISR) operations support for ACC.

The task order has a total potential value of approximately $717 million if all options are exercised. It includes a one-year base period with four one-year options. Work will be performed at more than 35 locations in the United States and overseas, positioning Leidos personnel alongside U.S. Air Force mission partners at the point of need and reinforcing the company's role as an embedded partner in day-to-day mission execution.

Leidos has supported this mission as the prime contractor since 2019. The new task order extends that partnership at a time when military leaders need accurate, timely information to assess threats and support operations across air, space, cyber and intelligence missions.

"Airmen operate in an environment where decisions often depend on the speed, quality and clarity of intelligence," said Jason McCarthy, Leidos senior vice president, Airborne & Mission Solutions. "Since 2019, our team has worked alongside Air Combat Command to provide mission-focused ISR support, training and analysis. This next phase of work builds on that foundation with the insight and operational expertise needed to help Airmen assess threats, prepare for missions and support operations around the world."

Under the task order, Leidos will provide subject matter expertise, intelligence analysis, threat mitigation, ISR operations support, training, and mission support services for ACC headquarters, subordinate Numbered Air Forces, centers, and wings. This work reflects Leidos' NorthStar 2030 commitment to helping Department of War customers maintain combat-ready forces and defeat evolving global threats.

Headquartered at Joint Base Langley-Eustis in Hampton, Virginia, ACC is one of the U.S. Air Force's major commands and serves as a primary provider of combat air, space, cyber and intelligence capabilities to America's warfighting commands. ACC AMIC provides acquisition services that support mission-focused capabilities across the command.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

Forward-Looking Statements

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. Several factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact:

Brandon Ver Velde
[email protected]
(571) 526-6257

SOURCE Leidos Holdings, Inc.

, /PRNewswire/ -- The Board of Directors of Truist Financial Corporation (NYSE: TFC) declared a regular quarterly cash dividend of $0.52 per common share, payable on September 1, 2026, to shareholders of record at the close of business on August 14, 2026.

The Board also declared regular cash dividends on the following series of preferred stock:

Series of Preferred Stock

Dividend per
Share 

Dividend per
Depositary
Share 

Record

Date

Payment

Date

Series I Non-Cumulative Perpetual Preferred Stock (CUSIP 89832Q810) 

$1,138.74533(1)

$0.28469(1)

Aug. 14

Sep. 15

Series J Non-Cumulative Perpetual Preferred Stock (CUSIP 86800XAA6) 

$1,168.13422(1)

$11.68134(1)

Aug. 14 (2)

Sep. 15

Series N Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock

(CUSIP 89832QAD1)

$833.625

$33.345

Aug. 14

Sep. 1(3)

Series O Non-Cumulative Perpetual Preferred Stock (CUSIP 89832Q745)

$328.125

$0.328125

Aug. 14

Sep. 1

Series Q Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock

(CUSIP 89832QAF6)

$637.50

$25.50

Aug. 14

Sep. 1(3)

Series R Non-Cumulative Perpetual Preferred Stock (CUSIP 89832Q695)

$296.875

$0.296875

Aug. 14

Sep. 1

Series S Non-Cumulative Perpetual Preferred Stock (CUSIP 89832QAK5)

$520.83333(1,4)

$20.83333(1,4)

Aug. 17

Sep. 15(4)

Notes:
(1) In the table, dividends per share and dividends per depositary share for Series I, Series J, and Series S are rounded to the hundred-thousandths position for the convenience of the reader.
(2) In accordance with the Amended and Restated Declaration of Trust of SunTrust Preferred Capital I, the record date for the Preferred Purchase Securities representing fractional interests in shares of Series J preferred stock will be August 31, 2026.
(3) Dividends per share and dividends per depositary share for Series N and Series Q are declared and paid semiannually.
(4) The dividend per share and dividend per depositary share for Series S reflect the initial dividend period that began on May 15, 2026, the original issuance date, and ends immediately prior to the September 15, 2026 dividend payment date. For a regular quarterly dividend period prior to the first reset date, dividends on Series S would be $390.625 per share and $15.625 per depositary share.

About Truist
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina, Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Truist is a top-10 commercial bank with total assets of $556 billion as of June 30, 2026. Truist Bank, Member FDIC. Equal Housing Lender. Learn more at Truist.com.

SOURCE Truist Financial Corporation

Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) is at a potential inflection point as concerns around prediction market competition begin to fade, according to Jefferies analysts, who highlighted improving online sports betting trends and potential new sources of profitability.

Jefferies wrote that the market’s focus on prediction markets cannibalising online sports betting had driven a 65% decline in Flutter’s share price since last summer and contributed to a valuation de-rating from 15 times enterprise value to EBITDA to 8 times.

The analysts argued that the narrative around prediction market disruption is beginning to change, with online sports betting handle growth recovering and limited evidence that prediction markets are taking meaningful share in states where online sports betting is legal.

“The powerful, but misplaced narrative that PMs will cannibalise OSB has started to unravel,” Jefferies wrote, adding that prediction markets could instead provide incremental opportunities for Flutter through market-making activity, FanDuel Predicts and regulatory leverage.

Jefferies identified market-making as the largest potential opportunity, estimating a $340 million annual EBITDA contribution if Flutter captures a 25% share of Kalshi parlays.

The analysts noted that this opportunity is significant compared with Flutter’s $970 million fiscal 2026 US EBITDA guidance, while consensus estimates currently assume no positive contribution from prediction markets and instead reflect around a $300 million investment.

The firm also highlighted potential upside from FanDuel Predicts, which Jefferies estimated could contribute an additional $150 million in EBITDA over the coming years. The analysts also pointed to potential regulatory benefits, including the ability for prediction markets to support broader online sports betting regulation and limit state tax increases.

Jefferies estimated that prediction markets would need to reduce online sports betting handle by around 50% before becoming a net negative for Flutter, given the potential incremental profitability opportunities.

Ahead of Flutter’s Q2 results, Jefferies expects the company could deliver its first US EBITDA beat in a year, improving confidence around the second half of 2026. The analysts forecast Q2 US EBITDA of $126 million, which it said would be 21% above company guidance and 24% above consensus expectations, driven by online sports betting performance and market-making.

A stronger Q2, alongside improved visibility into prediction market opportunities, could help address investor concerns around the expected second-half earnings step-up, Jefferies wrote.

“If FLUT was de-rated for reasons that turn out to be wrong (PM cannibalisation), we would expect a commensurate re-rating as that understanding evolves,” Jefferies wrote.

The analysts added that if prediction markets create incremental total addressable market and profitability opportunities, Flutter could support a higher valuation multiple.

Shares of Flutter traded up 3% at $109 on Tuesday afternoon, down almost 50% so far in the year to date.

Sun Communities, Inc. (SUI) Q2 2026 Earnings Call July 28, 2026 11:00 AM EDT

Company Participants

Charles Young - CEO & Director
John McLaren - President & COO
Fernando Castro-Caratini - CFO, Executive VP, Secretary & Treasurer
Aaron Weiss - Executive VP & Chief Investment Officer

Conference Call Participants

Jana Galan - BofA Securities, Research Division
James Feldman - Wells Fargo Securities, LLC, Research Division
Eric Wolfe - Citigroup Inc., Research Division
Brad Heffern - RBC Capital Markets, Research Division
Michael Goldsmith - UBS Investment Bank, Research Division
Steve Sakwa - Evercore ISI Institutional Equities, Research Division
John Kim - BMO Capital Markets Equity Research
Haendel St. Juste - Mizuho Securities USA LLC, Research Division
Jason Wayne - Barclays Bank PLC, Research Division
Adam Kramer - Morgan Stanley, Research Division
Wesley Golladay - Robert W. Baird & Co. Incorporated, Research Division
Peter Abramowitz - Deutsche Bank AG, Research Division
David Segall
Jesse Lederman - Zelman & Associates LLC

Presentation

Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sun Communities Second Quarter 2026 Earnings Conference Call. The press release and supplemental financial information can be found on the Investor Relations section of the company's website.

At this time, management would like me to inform you that certain statements made during this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. During today's call, management may discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable to GAAP measures are included in the press release and supplemental financial information.

Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the company can provide no assurance that its expectations will be achieved. Factors and risks that could cause actual results to differ materially from expectations are detailed in

Element Solutions Forming Flat Base After Q2 Earnings Element Solutions NYSE: ESI reported record second-quarter revenue, adjusted EBITDA and adjusted earnings per share as demand tied to artificial intelligence infrastructure and high-performance computing drove broad growth across its electronics portfolio.

The company said organic net sales increased 15% year over year in the second quarter, while constant-currency adjusted EBITDA rose 33%. Adjusted EPS increased 27%, according to Chief Executive Officer Ben Gliklich. Excluding pass-through metals, adjusted EBITDA margin expanded 120 basis points from a year earlier to 27.8%.

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“Our organic path has tremendous momentum,” Gliklich said, pointing to a third consecutive quarter of double-digit organic sales growth and margin expansion excluding pass-through metals.

Electronics growth led by semiconductors and AI demand Electronics segment organic sales rose 20%, with each vertical recording double-digit growth. Semiconductor Solutions grew 31% organically, Assembly Solutions increased 18%, and Circuitry Solutions advanced 15%.

Management attributed the performance to sustained spending on AI infrastructure, data centers and other high-performance computing applications. The company cited demand for semiconductor packaging, advanced printed circuit board chemistries, thermal interface materials, engineered assembly materials and power-electronics applications.

Chief Financial Officer Carey Dorman said volume growth accounted for roughly 60% to two-thirds of the semiconductor business’s more than 30% organic growth during the quarter, with the remainder coming from price and mix, including higher precious-metal prices affecting certain products.

Semiconductor Solutions benefited from improved order patterns in power electronics, momentum in thermal-interface materials for high-power AI GPUs and CPUs, and demand for advanced packaging solutions from outsourced semiconductor assembly and test providers in Asia. Dorman said both the power-electronics and wafer-plating businesses recorded volume growth in the high teens.

Gliklich said Element Solutions is seeing high utilization and capacity additions among customers in advanced portions of the electronics supply chain, including leading-edge semiconductor foundries, circuit-board fabricators, device assemblers and electronics manufacturing services providers.

“At the more advanced end, we’re seeing very high utilization rates,” Gliklich said. “That is supporting substantial capacity additions at all of our major customers.”

Investment continues in Cuprion and acquired businesses The company is increasing investment in Cuprion, its active copper technology intended to address customer needs in thermal management, power delivery and copper plating on difficult substrates. Element Solutions said its initial Fremont, California, plant is sampling and qualifying material with customers.

During the quarter, the company identified opportunities to increase output from the initial facility and expanded plans for a second Fremont site. It also progressed work toward a third site in Connecticut. Gliklich said the company’s expected active-copper capacity by the end of 2027 increased materially during the second quarter.

While management did not quantify expected 2027 Cuprion revenue, Gliklich said customer demand should translate into material revenue and profit contribution that year, with a more substantial outlook for 2028 based on planned capacity.

Recent acquisitions also contributed to results. Micromax added approximately $130 million in reported quarterly sales, about two-thirds of which was metals-related, though it is excluded from the company’s organic-growth calculation. Management said the business is performing ahead of its plan, supported by volume and pricing, but expects some modest sequential softening in the second half as it takes a more conservative view of its earnings cadence.

EFC Gases & Advanced Materials contributed $16 million of second-quarter revenue. Management described the business as lumpier than Element Solutions’ other operations but said commercial activity remains healthy and it expects a substantially larger second half. Gliklich said the company has greater confidence than it did a quarter earlier in EFC’s ability to generate $30 million for the full year.

Specialty segment navigates mixed conditions In the Specialty segment, Industrial Solutions grew organic sales 3%, aided by a modest return to growth in European industrial markets, global surcharges and price increases tied to rising raw-material costs. The business has been restructuring its go-to-market and supply-chain strategy over the past year.

Offshore Energy Solutions grew organic sales 1%, slower than the first quarter, due to timing effects and disruption associated with the war in Iran, management said.

Raw-material and logistics inflation remains a consideration for the second half. Dorman said pressure has primarily come from oil-derived materials, including ethylene- and propylene-based products, particularly affecting industrial and offshore operations. Gliklich said the company does not have a major concentration in any single non-metal raw material.

Management said lower metals prices would not be expected to have a material effect on profit dollars because the company generally does not earn margins on metals.

Guidance raised as company targets lower leverage Element Solutions raised its full-year adjusted EBITDA outlook to a range of $690 million to $710 million. The guidance reflects first-half trends and execution of company initiatives, while accounting for one-time metal-hedge gains recognized in the first half of 2026 that were associated with costs recorded in the second half of 2025.

The company expects third-quarter adjusted EBITDA of approximately $180 million. Management expects demand conditions to remain sequentially similar to the first half, offset by potential pressure from raw-material and logistics inflation that may not be immediately recovered through pricing and sourcing actions.

For the fourth quarter, Element Solutions expects normal seasonal effects and fewer operating days around holidays to result in a modest decline from third-quarter levels. The company now expects full-year adjusted EPS growth of approximately 20%.

Adjusted free cash flow was $74 million in the second quarter. Capital expenditures totaled $28 million during the quarter and more than $50 million year to date. The company increased its full-year capital expenditure expectation to roughly $100 million, at the high end of its prior range, to support projects including Cuprion, thermal interface materials, plant consolidation and Industrial Solutions supply-chain initiatives.

Net leverage stood at 2.9 times on a pro forma basis including Micromax and EFC. Dorman said Element Solutions expects to reduce leverage to roughly 2.5 times by year-end, supported by earnings growth and anticipated cash generation.

Solstice transaction remains subject to approvals Management also reiterated its rationale for the proposed merger with Solstice Advanced Materials, which remains subject to shareholder and regulatory approvals and customary closing conditions. The company declined to take analyst questions on the transaction.

Gliklich said the combination would expand the companies’ electronics capabilities across chip and printed-circuit-board fabrication, packaging and assembly, while creating a broader offering in thermal management and front-end copper interconnect formation. He said the companies have identified more than $180 million in potential cost synergies and have begun integration planning.

He acknowledged that Element Solutions’ stock reaction to the announcement had been disappointing, saying the companies must demonstrate that they can execute operationally and culturally on the opportunity.

About Element Solutions (NYSE:ESI)Element Solutions Inc is a global specialty chemicals company that develops and supplies highly engineered chemistries to performance-driven end markets. The company's solutions serve customers across the electronics, energy, transportation, consumer and industrial sectors, with a particular emphasis on electronics chemicals, metal plating, and industrial coatings additives.

In the electronics market, Element Solutions provides a range of plating and surface-treatment chemistries used in the manufacture of printed circuit boards, semiconductor devices, and advanced display technologies.

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

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, /PRNewswire/ -- The board of directors of the general partner of MPLX LP (NYSE: MPLX) has declared a quarterly cash distribution of $1.0765 per common unit for the second quarter of 2026, or $4.31 on an annualized basis. The distribution will be paid on Aug. 14, 2026, to common unitholders of record as of Aug. 7, 2026.

Qualified Tax Notice

Concurrent with this announcement we are providing qualified notice to brokers and nominees that hold MPLX units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of the Partnership's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, the Partnership's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees, and not MPLX, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of non-U.S. investors.

About MPLX LP 

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com.

Investor Relations Contacts: (419) 421-2071
Brian Worthington, Vice President, Investor Relations
Isaac Feeney, Director, Investor Relations
Evan Heminger, Analyst, Investor Relations

Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager

SOURCE MPLX LP

Apple has become only the second company to pass the $5tn valuation mark, as it benefited from investors fleeing AI and semiconductor stocks amid a wider tech sell-off.

The iPhone maker’s shares hit a session high ⁠of $342.89 on Tuesday, giving it a market ⁠capitalisation of $5.04tn (£3.78tn), then eased back to 0.8% up at $339.68 – around the $4.99tn mark.

Apple became the world’s most valuable company earlier this month, overtaking the chip giant Nvidia, which had been ⁠at the top since June 2025 and became the first company ever to breach the $5tn threshold last October.

The US consumer electronics company’s rally has been driven ⁠as much by strong demand for its products as its decision to sit out the ​AI spending race that is sapping cash ‌flows at big tech ‌rivals.

Its fresh valuation high came amid an intensifying sell-off of AI stocks around the world driven by rising concerns about AI companies’ borrowing to fund datacentre expansion.

US chip stocks extended their recent losses when Wall Street opened on Tuesday, with Intel, Advanced Micro Devices, Sandisk, Western Digital and Seagate Technology all down by more than 4%.

The Nasdaq 100 index of leading tech stocks fell by as much as 1.8% at one point, meaning since its early June record high it had fallen more than 10% – the technical definition of a market correction.

Meanwhile South Korea’s stock market slid to its lowest level since mid-April, with semiconductor companies SK Hynix and Samsung Electronics falling by more than 10%.

Analysts attributed the sell-off to renewed worries over AI investment spending, and competition from cheaper Chinese companies, after a report by the Information that China had begun mass production of homegrown deep ultraviolet (DUV) chip-making tools.

Apple’s decision to hold iPhone prices steady, despite increases last month for MacBooks and iPads, has bolstered demand. Photograph: Lucas Jackson/ReutersInvestors may also be growing jittery about the “circular funding” at the heart of the AI industry, through which artificial intelligence companies finance one another.

They have also been spooked by the announcement by Google last week that it was further increasing capital spending this year to as much as $205bn to fund its AI plans, while reporting negative free cashflow for ​the first time in its history, burning through $5.9bn in the three months to the end of June.

Apple has been shielded somewhat by being somewhat of an AI laggard. Its difficulties in developing in-house models meant it has instead relied on Google’s ‌technology to power new services such as a revamped Siri. That has spared it the hefty infrastructure costs that have left big tech investors wary.

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Apple’s decision to hold iPhone prices steady last month when it announced increases for MacBooks and iPads has also bolstered demand as buyers scooped up the company’s flagship device ahead of expected ‌price hikes later this year, analysts have said.

To aid demand, Apple on Tuesday also launched a device leasing programme in the US through the payments ​firm Klarna, under which monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.

“Apple has resisted the AI spending race, betting that customer experience – not infrastructure investment – will ultimately determine the winners,” said Dipanjan Chatterjee, a vice-president and principal analyst at Forrester. “The ⁠new leasing programme is a clever response: it doesn’t reduce the price ​of an iPhone, but ​it changes how consumers perceive the cost ​by replacing sticker shock with a predictable monthly payment.”

Including session gains, Apple ​stock has jumped ‌24% so far this year, ​widely outperforming the ​other six of the “Magnificent Seven” cohort of US technology stocks.

Apple is to report its third-quarter earnings after the market close on Thursday, with analysts expecting a more than 15% jump in revenue for the period compared with a year earlier.

Reuters contributed to this report

© Fritz Jorgensen / iStock Editorial via Getty Images

At $593.87, Meta (NASDAQ:META | META Price Prediction) is a Hold heading into its July 29 earnings report. Options markets are pricing in an approximately 8% binary move, or a $49 swing, which makes buying the day before the report a bet on event risk rather than the business.

Meta runs the largest advertising franchise on the internet through Facebook, Instagram, WhatsApp, Threads, and Messenger, alongside Reality Labs. The stock has been range-bound for months as investors weigh a booming ad engine against rapidly escalating AI infrastructure costs. Shares are down 8.05% in the past week and 16.4% over the last year, setting up a report that could break either direction.

Why the Ad Engine Justifies a Bid Q1 2026 was strong. Revenue jumped 33.08% year over year to $56.31 billion, with ad impressions up 19% and price per ad up 12%. Family of Apps daily actives reached 3.56 billion. Operating cash flow of $32.23 billion funds the AI buildout without straining the balance sheet.

Valuation looks reasonable. Meta trades at 21x trailing earnings and 19x forward earnings, well below most mega-cap peers. Polymarket traders assign a 94.7% probability that Meta beats Q2 consensus, and July 31 call open interest is running nearly 2.5x put open interest.

Why the CapEx Bill Could Sink the Stock Meta raised full-year capital expenditure guidance to $125 billion to $145 billion, up from a prior $115 to $135 billion range, citing higher component pricing and more data center capacity. Q1 capex alone rose 46.8% year over year, and total expenses climbed 35%. Reality Labs continues to bleed roughly $4.03 billion per quarter.

The market has already punished a good report. After the Q1 blowout, shares fell from $671.77 at filing to $608.75 the next day. Q3 2025 fell 11.33% on earnings day despite a beat, and Q1 2026 dropped 8.55%. Youth-related litigation trials scheduled for 2026 add another overhang.

Why Patience Beats Conviction Right Now The fundamentals support holding, and the setup argues for patience. Ad revenue is compounding at a 30%-plus clip, but every dollar of upside is being reinvested into GPUs and data centers whose returns are unproven. Reddit sentiment swung from bearish 22 mid-week to bullish 72 by earnings eve, signaling uncertainty.

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The trigger to reassess is the Q2 earnings report itself. Any further capex revision above $145 billion, or Q3 revenue guidance below the current $58 billion to $61 billion Q2 range, likely delivers a dip. A clean beat with steady spending discipline flips the verdict to Buy.

What the Targets Show Meta currently trades at $593.87 against a consensus analyst target of $825.84, implying 28.6% upside if targets are met. Coverage is heavily positive with 8 Strong Buy, 49 Buy, 6 Hold, and 0 Sell ratings.

The stock is off 9.88% year to date while the S&P 500 proxy SPY has moved from $718.66 at Meta’s Q1 filing to roughly $739.09 currently, meaning Meta has meaningfully underperformed the broader market. Shares sit below both the 50-day moving average of $606.07 and the 200-day at $638.07.

Why Waiting Is the Right Call At $593.87, Meta is a Hold. The July 29 earnings report is a binary event with a pre-priced $49 swing. Buyers today absorb the risk that management raises the $125 to $145 billion capex band again. Every quarter over the last year, capex guidance has ratcheted higher, and the Q1 stock reaction of negative 8.55% shows how the market treats those revisions even when earnings crush estimates.

A pullback into the $540 to $560 zone would compress the forward multiple to roughly 17x and restore a margin of safety consistent with prior post-earnings entry points. A capex revision above $150 billion combined with deceleration in ad pricing would materially change the risk profile. Both will be knowable when the earnings report lands.

Patience risks missing a possible 8% gap higher. Impatience risks buying the top of a range that has held for a full year. Waiting one week to see the earnings report and the capex line specifically offers the clearest read on risk versus reward at this price.

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Contact [email protected] for any questions or corrections.

Key Takeaways NIKE's weak demand in Sportswear, Jordan and digital channels continues to weigh on revenues. NKE is advancing its "Win Now" strategy through innovation, inventory discipline and wholesale partnerships. Performance categories are gaining traction, but lifestyle weakness remains a near-term earnings challenge. NIKE, Inc. (NKE - Free Report) has been facing demand headwinds, with weakening consumer demand for its products weighing on sales. NIKE highlighted that consumers are becoming more cautious about discretionary spending amid an uncertain macroeconomic environment, leading to lower store traffic and slower retail sales trends.

Consequently, NIKE’s fourth-quarter revenues fell 4% on a currency-neutral basis. Revenues for the NIKE Brand were flat on a reported basis and down 3% on a currency-neutral basis. The weakness was mainly due to declines in Greater China and EMEA, somewhat offset by growth in North America. NIKE Direct revenues declined 7% on a reported basis, owing to a 12% decline in NIKE Brand Digital and a 7% fall in NIKE-owned stores.

The company also continues to face weak demand for its Sportswear and Jordan Streetwear businesses, where sell-through remains soft and promotional activity is elevated. Management cited that Sportswear and Jordan Streetwear are expected to continue to be negative in fiscal 2027, with improvement likely in the back half. Although performance categories such as Running, Training and Global Football are gaining momentum, these gains are not yet sufficient to offset weakness in the larger lifestyle categories.

Although NIKE expects these demand headwinds to continue weighing on revenue growth in the near term, it is focusing on product innovation, marketplace enhancements and stronger consumer engagement to revive demand and support growth. NIKE is streamlining inventory, reducing promotional activity and investing in its wholesale network. It is executing its "Win Now" turnaround strategy, which focuses on strengthening culture, accelerating product innovation, reinforcing brand strength and enhancing consumer engagement.

Looking ahead, investors will closely monitor whether NIKE's turnaround initiatives, including innovation, a stronger sport-focused strategy and an enhanced consumer experience, can revive demand. While these investments may pressure near-term earnings due to higher spending, they are expected to strengthen brand engagement, restore healthier demand, improve full-price sales and support sustainable earnings growth.

NKE’s Competitionlululemon athletica inc. (LULU - Free Report) continues to benefit from the progress with its Power of Three X2 growth strategy. LULU remains focused on its long-term growth strategy, which centers on continuous product innovation, enhancing the guest experience and expanding its international presence to drive sustainable growth. lululemon is experiencing robust international momentum, with China and other global markets driving faster growth.

adidas AG (ADDYY - Free Report) is focused on strengthening its brand appeal through continuous product innovation, operational excellence and strategic growth initiatives. ADDYY remains committed to enhancing profitability and long-term competitiveness by maintaining inventory discipline, improving operational efficiency and advancing its sustainability efforts. In addition, adidas is expanding its global footprint through localized market strategies, increased digital investments and an ongoing expansion of its retail store network.

NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 32.7% in the past six months compared with the industry’s decline of 27.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 22.94X compared with the industry’s average of 19.96X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 10.1% and 35.1%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past 30 days.

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Key Takeaways ExxonMobil is due to report Q2 results July 31, with EPS seen up nearly 136% year over year.Higher liquid prices may lift XOM's upstream earnings by $3.5B-$3.9B sequentially.XOM has outpaced its industry, but its 10.23x EV/EBITDA exceeds the 6.71x industry average. ExxonMobil Holdings Corporation (XOM - Free Report) is set to report second-quarter 2026 results on July 31, before the opening bell.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.87 per share, implying a surge of almost 136% from the year-ago reported number. It has witnessed one downward estimate revision in the past seven days. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $95.8 billion, suggesting a roughly 18% rise from the year-ago actuals.

XOM beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 6.04%. This is depicted in the graph below:  

Image Source: Zacks Investment Research

Q2 Earnings Whispers for XOMOur proven model doesn’t predict an earnings beat for XOM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That isn’t the case here.

The leading integrated energy player has an Earnings ESP of -2.40%. XOM currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

XOM’s Factors to NoteIn its latest 8-K SEC filings, XOM stated that it is likely to see a sequential improvement in the June quarter upstream earnings by $3.5 billion to $3.9 billion due to an increase in liquid prices.

To have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.

A constructive oil-price backdrop due to the Iran war aided the company’s exploration and production businesses in the June quarter of this year, similar to BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) .

XOM added that stronger margins from its Energy Products segment are likely to have provided a $2.0 billion to $2.4 billion sequential benefit.

XOM’s Price Performance & ValuationXOM's stock has jumped 37.2% over the past year, outperforming the industry’s 35.6% surge. BP has gained 28.4% over the same time frame, while Chevron has rallied 21%.

One-Year Price Chart

Image Source: Zacks Investment Research

While XOM’s stock price has outperformed the industry, the company appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) is 10.23x, reflecting that it is trading at a premium compared with the industry average of 6.71x. Both BP and CVX are valued lower at 3.15x and 9.85x, respectively.

Image Source: Zacks Investment Research

Investment Thesis of XOMExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.

According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.

With West Texas Intermediate (“WTI”) crude oil trading above the $80-per-barrel mark, significantly above the shut-in prices, it makes sense for XOM to continue production in the wells. Although the upstream business seems lucrative now, the high oil price is hurting the company’s refining operations, since the input costs have jumped. Also, with a significant proportion of earnings being generated from upstream activities, the company’s business is highly vulnerable to the volatility in commodity prices.

Last WordGiven the backdrop, it might not be wise for investors to bet on the integrated energy giant ahead of earnings because of its overvaluation. However, those who have already invested may hold on to the stock.

On Thursday, we’ll get a clearer picture of how the turnaround story at Starbucks (SBUX -0.52%) is progressing. The coffee slinger is scheduled to publish its fiscal third-quarter results after market close tomorrow (Wednesday, July 29).

So far this year, the stock is up by more than 23%, crushing the 8% growth of the bellwether S&P 500 index. That’s made it expensive in terms of valuations. The upcoming earnings report will show whether the company can maintain momentum while its “Back to Starbucks” strategy is still brewing.

Image source: The Motley Fool.

Caffeinated numbersCollectively, analysts expect Starbucks to post just over $9.1 billion in revenue and $0.65 per share in net income. That’s nearly 4% below the company’s third-quarter fiscal 2025 figure (although this will likely be due mainly to changes in the China business; more on that in a moment). On the flip side, that bottom-line projection would be a sweet 30% improvement over the year-ago number.

Back to Starbucks, the return-to-growth strategy that’s been the defining feature of CEO Brian Niccol’s tenure, has been producing results lately. At least, that’s according to the company, which attributed its solid second-quarter performance to the initiative.

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Personally, I’ve seen at least a few of the program’s goals — more comfortable and welcoming interiors, quicker order implementation, etc. — in effect at several of my local cafes in California. So I think Back to Starbucks is a sensible program, and the company is executing it effectively.

While I doubt it’s the only reason for the improvements the company posted in the second quarter, growth was impressive. That period saw Starbucks increase net revenue by nearly 9% year over year (to over $9.5 billion) on the back of a 7% rise in comparable sales. Both growth rates rose steadily across the last four quarters. Meanwhile, net earnings not under generally accepted accounting principles (non-GAAP, or adjusted) raced 22% higher to $0.50 per share.

Management also raised certain full-year 2026 guidance items. Its “comps” were adjusted to at least 5% over the 2025 tally, from the previous forecast of more than 3%. Adjusted earnings per share (EPS) are now expected to land at $2.25 to $2.45, compared to the preceding guidance of $2.15 to $2.40.

Increasingly dependent on domestic businessThere was much to like in Starbucks’ second quarter, and there should be some encouraging numbers in the subsequent frame. To me, though, there are areas of concern I think all Starbucks-watchers should keep an eye on.

One is international sales. Much of the company’s second-quarter growth came from its North America outlets, where same-cafe growth was over 7%, fueled by a 4.4% rise in number of transactions and a 2.7% improvement in average “ticket” (i.e., customer spend per purchase). The numbers for international cafes were notably lower, at a respective 2.6%, 2.1%, and 0.5%. Worse, Starbucks’ once-great hope for its business abroad, China, posted 0.5%, 2.1%, and a decline of 1.6%, respectively.

Starbucks is letting go of China to some extent; in early April, it completed the shift of its business there to a 60/40 joint venture, majority-owned by the private equity firm Boyu Capital. The U.S. company will no longer book register sales as part of its overall revenue; instead, it’ll earn royalty fees and a 40% share of net profit. So beware — certain China figures starting in the third quarter will be notably lower.

That leaves the North America business as more of a core for the company than it’s been in many years. And, if anything, Starbucks has been closing locations rather than opening new ones (it boasted only 11 net new stores worldwide in the second quarter, for a total of 41,129).

Meaning that it’s in a position where it has to squeeze growth from a store base that will expand only modestly, at best. There are only so many operational efficiencies and improvements that can be made to effect this; ditto for price increases in an era of increasing consumer price consciousness. So it feels to me that those recently increasing growth numbers might wither or even go negative before long.

A high price to payMy impression of the current state of Starbucks, then, is that it’s a mature business with a huge footprint that has little room to grow. The Back to Starbucks program has produced results, but I don’t envision those efficiency-fueled gains to continue at the recent pace. Meanwhile, the stock is priced for hot growth, with a forward P/E of almost 35, which I doubt will be matched by leaps in profitability.

Starbucks could very well meet or exceed its winning second quarter, but I still wouldn’t feel like it’s a solid, long-term growth story. I’m not enthusiastic about the stock now, and even an estimates-beating third frame isn’t going to sway me.

Key Takeaways INTC partnered with Lens Technology to develop advanced glass substrate chip packaging.INTC will pair advanced packaging expertise with Lens Technology's glass manufacturing capabilities.Intel will explore AI PCs, data centers, robotics, industrial equipment and edge computing. Intel Corporation (INTC - Free Report) has partnered with Lens Technology to develop advanced glass substrate packaging for semiconductor chips. The collaboration aims to improve chip performance and power efficiency while supporting the growing demand for artificial intelligence (AI), data center and high-performance computing applications.

Under the agreement, Intel will leverage its expertise in semiconductor architecture and advanced packaging, while Lens Technology will contribute its capabilities in precision glass processing and large-scale manufacturing. By combining their complementary strengths, the companies plan to accelerate the development of glass substrate-based packaging solutions for next-generation computing platforms.

The partnership aligns with the semiconductor industry's increasing focus on advanced packaging as chip designs become more complex. Intel is expanding its efforts in glass substrate technology, which is expected to enable more efficient integration of chip components while meeting the performance requirements of future computing systems.

In addition, both companies will explore opportunities across AI PCs, data center infrastructure, robotics, industrial equipment and edge computing. These initiatives are likely to strengthen Intel's position in AI-driven markets while supporting its long-term growth strategy.

How Are Competitors Performing in Advanced Packaging?Intel faces competition from Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . Qualcomm is expanding its focus on advanced packaging to support its AI and data center business. The company is developing multi-chiplet processors that use advanced packaging to improve performance, power efficiency and scalability. Qualcomm is enhancing its packaging capabilities to support end-to-end silicon development, accelerate time-to-market and minimize integration risk.

Advanced packaging is a key part of AMD's semiconductor strategy, helping it to improve chip performance, power efficiency and scalability. The company uses chiplet-based designs and advanced packaging technologies to integrate multiple computing components into a single processor. AMD continues to invest in packaging innovations to support growing demand for AI, data center and high-performance computing applications.

INTC’s Price Performance, Valuation & EstimatesShares of Intel have skyrocketed 343.3% over the past year compared with the industry’s growth of 23.7%.

Image Source: Zacks Investment Research

Going by the price/book ratio, the company's shares currently trade at 4.47 book value, lower than the industry average of 20.61.

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INTC’s earnings estimates for 2026 have increased 1.9% to $1.07 per share, while those for 2027 have increased 4.2% to $1.50 over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways SAP plans nearly 50 AI assistants by Q3-end and over 400 Autonomous Suite agents for workflows by year-end.SAP expects usage- and value-based models to drive cloud growth by 2030 as seat revenue steadies.AI migration tools can cut costs by up to 30%, but acquisitions dilute 2026 profit by over 100M euros. SAP SE (SAP - Free Report) is leaning into agentic AI as enterprise software shifts from record-keeping systems toward autonomous workflows. Its strategy ties AI assistants, trusted business data and cloud ERP migration tools into one operating model.

The opportunity is long dated. By 2030, management expects cloud growth to rely more on consumption, usage and value-based pricing than traditional seat expansion.

SAP Scales Agentic AI Across Enterprise WorkflowsSAP plans to release nearly 50 AI assistants by the end of the third quarter. It also expects to support more than 400 Autonomous Suite agents by year-end, giving customers a broader automation layer inside core business processes.

The company is embedding AI across finance, procurement, supply chain, human resources and customer operations. The goal is not a standalone chatbot layer, but AI that works within applications that already hold business context, transaction history and governance controls.

SAP Shifts Toward Usage-Based Cloud RevenueManagement expects SAP’s cloud revenue mix to shift meaningfully by 2030. Consumption-based and non-seat-based models are expected to drive most incremental cloud growth as AI and data adoption increase.

That would mark a different growth model from conventional software seats. Seat-based revenue is expected to stabilize, while value- and usage-driven pricing becomes a larger contributor as customers use more AI, data and automation inside SAP’s cloud suite.

SAP Data Deals Strengthen the AI PlatformSAP’s recent data moves support that strategy. Dremio adds data lakehouse capabilities that enable real-time analytics across SAP and non-SAP data without requiring data movement or conversion.

Reltio and Prior Labs address different layers of the same problem. Reltio strengthens master-data governance and semantic data models, while Prior Labs adds tabular AI capabilities for structured business data. Together, these assets help SAP ground AI agents in cleaner, more connected enterprise data.

SAP ERP Tools Could Lower Migration FrictionERP migration remains one of the biggest barriers to cloud adoption. SAP says its AI-powered ERP migration toolchain is helping customers accelerate deployments, shorten time to value and reduce migration costs by up to 30%.

The company also plans to introduce three additional ERP migration assistants with 10 underlying agents later this quarter. If these tools work as intended, they could make RISE with SAP and GROW with SAP easier to adopt for customers moving legacy workloads into the cloud.

SAP Trends Carry Margin and Macro RisksAI scale is not free. SAP has to keep investing in product development, acquisitions and platform capacity while competing with large providers such as Oracle Corporation (ORCL - Free Report) , whose Fusion Cloud Applications also embed AI agents across enterprise workflows.

Near-term dilution is another concern. SAP lowered its 2026 non-IFRS operating profit outlook to €11.8-€12.2 billion, reflecting more than €100 million of expected impact from Dremio and Prior Labs. Operating expenses for 2027 are projected to rise at 80-90% of revenue growth.

Enterprise AI adoption also carries timing risk. Long sales cycles, complex license transactions, cybersecurity exposure, geopolitical tension and customer budget shifts could weigh on demand. Salesforce, Inc. (CRM - Free Report) , through Agentforce, adds another major competitive reference point in enterprise agentic software.

SAP Signals Show Momentum Still Needs RepairSAP’s agentic AI and cloud ERP strategy gives it a credible path to broader enterprise automation, but the stock’s near-term setup is less supportive. Product momentum must still translate into firmer earnings revisions and better market timing.

SAP currently carries a Zacks Rank #4 (Sell). Its Growth Score of C recognizes underlying expansion potential, but its Value Score of D, Momentum Score of F and VGM Score of D point to weaker valuation, timing and blended style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The rank and Style Scores suggest investors should separate the long-term AI platform story from the stock’s current earnings-momentum profile. SAP’s trends through 2030 remain worth tracking, but execution risk and timing still matter.

Key Takeaways SAP's cloud ERP and AI strategy targets autonomous workflows across core business functions.SAP Business Data Cloud reached about 2B euros in contract value, with AI in over 90% of top deals.SAP expects about 10B euros in 2026 free cash flow, while legacy declines and integration costs weigh. SAP SE (SAP - Free Report) is tying cloud ERP migration to embedded AI, enterprise data and workflow automation. The strategy is meant to move customers from legacy systems into a cleaner cloud model that can support more autonomous business processes.

The investor debate is straightforward. Cloud and AI demand are improving SAP’s growth profile, but software license and services revenues are still declining as the business model shifts.

SAP Builds Around the Autonomous EnterpriseSAP’s AI strategy centers on the Autonomous Suite and Business AI Platform. The company is embedding AI across finance, procurement, supply chain, human resources and customer operations, using enterprise applications as the operating layer.

Joule Studio forms the build layer for creating and extending AI agents. SAP Business Data Cloud supplies business context, while the run-and-govern layer helps customers deploy, manage and govern agents at scale.

SAP Business Data Cloud Gains Early TractionSAP Business Data Cloud generated approximately €2 billion in total contract value within its first year. That early adoption supports the case that customers want AI tied to governed enterprise data, not disconnected models.

More than 90% of SAP’s 50 largest second-quarter deals included AI and SAP Business Data Cloud. That mix gives management confidence in second-half demand as Business AI reaches more customers.

SAP Cash Flow Funds Innovation and BuybacksSAP reaffirmed its expectation for approximately €10 billion in 2026 free cash flow. That cash generation gives the company room to invest in product innovation, acquisitions and business development while navigating the cloud transition.

Image Source: Zacks Investment Research

Capital returns remain part of the story. SAP announced a €10 billion share repurchase program running through the end of 2027, and as of June 30, had repurchased more than 16.28 million shares for approximately €2.6 billion.

SAP Faces Migration and Execution RisksThe shift away from legacy software still has costs. Second-quarter software license revenues declined 32% year over year to €0.13 billion; services revenues fell 3% to €1 billion and cloud backlog growth is expected to moderate as the business scales.

Acquisition-related dilution also tempers the outlook. SAP expects Dremio and Prior Labs to reduce 2026 operating profit by more than €100 million, while competition remains intense from providers such as Oracle Corporation (ORCL - Free Report) , which also embeds AI agents into cloud applications.

Regulated enterprise deals can take longer to negotiate, deploy and ramp. Salesforce, Inc. (CRM - Free Report) , through Agentforce, adds another competitive reference point in enterprise AI, particularly where customers evaluate agent platforms tied to workflow automation.

Geopolitical uncertainty, cybersecurity exposure, pricing pressure and changing customer budgets remain risks. SAP also noted that its outlook assumes a near-term de-escalation of tensions in the Middle East.

SAP Signals Point to a Cautious Near-Term ViewSAP’s long-term growth case rests on a clear shift toward cloud ERP, trusted data and AI-enabled workflows. The near-term stock setup is less supportive because estimated momentum and share-price timing remain weak.

SAP currently carries a Zacks Rank #4 (Sell), which points to an unfavorable one-to-three-month earnings outlook. Its Value Score of D, Growth Score of C,  Momentum Score of F and VGM Score of D reinforce a selective stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The scores do not erase SAP’s cloud and AI progress. They do suggest investors should separate long-term platform potential from weaker current valuation, momentum and estimate-revision signals.

Key Takeaways Honeywell faces pressure from automation weakness, high costs and lower earnings estimates after its spin-off.ROK is gaining from strength across automation markets, pricing actions and growing data center investments.Rockwell offers stronger earnings growth prospects than Honeywell despite trading at a higher valuation. Honeywell Technologies (HON - Free Report) and Rockwell Automation, Inc. (ROK - Free Report) are two familiar names operating in the industrial sector. As rivals, both companies compete in multiple industries with significant overlap in the industrial automation and process control markets.

These companies are poised to benefit from significant growth prospects in industrial and process automation sectors, supported by technological upgrades and higher demand for automation solutions. But which company is better positioned to deliver upside in 2026? Let’s compare their fundamentals, growth prospects and challenges to see which stock stands out now.

The Case for HoneywellSolid demand for its products and solutions, led by increasing building projects in North America, India and the Middle East, is driving the Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it. In the second quarter, the segment’s organic revenues increased 9% year over year. Also, healthy growth in orders across the sensing and industrial measurement business bodes well for the Industrial Automation segment. The segment’s organic revenues increased 4% year over year in the second quarter.

However, Honeywell has been witnessing persistent weakness in the Process Automation and Technology segment. The segment’s organic revenues decreased 1% on a year-over-year basis in second-quarter 2026 following a decline of 6% in the first quarter. This decline was attributable to softness in the aftermarket business owing to lower refining catalyst shipments. However, growth in orders across LNG and automation projects bodes well.

The company has also been dealing with the adverse impact of rising cost of sales and operating expenses. In the second quarter, the company’s total cost of sales (including the Honeywell Aerospace business) was about $6.07 billion, up 7.2% year over year. The operating income margin declined to 17.9% from 19.8% in the year-ago period.

Its worth noting that on June 29, 2026, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies. Recently, HON also completed the divestment of its warehouse and workflow solutions business to American Industrial Partners.

The Case for RockwellThe company continues to see broad-based demand across discrete, hybrid and process markets. Discrete markets posted mid-teens growth in fiscal second-quarter 2026 (ended March 2026), led by Automotive, e-Commerce & Warehouse, and Semiconductor. Within e-Commerce, customers continue to prioritize upgrades and retrofits within existing warehouses over new greenfield builds and the company’s fiscal 2026 guidance factors in a 20% rise in e-Commerce & Warehouse Automation sales.

Automotive is expected to be up mid-single digits while semiconductor is expected to be up around 10%, backed by AI and data center-driven investment. In hybrid markets, Food & Beverage remains strong, reflecting customer investments in healthier products. In the fiscal second quarter, Food & Beverage sales grew high-single digits and are projected to be up in mid-single digits for fiscal 2026.  Life Sciences is projected to be up mid-single digits, backed by new capacity projects in North America and the Asia Pacific.

Rockwell continues to drive productivity and pricing to support margins as demand shifts. Management expects pricing actions to fully recover tariff costs in fiscal 2026 and is also using supply-chain optimization to mitigate tariff exposure. For fiscal 2026, ROK raised its reported and organic sales growth outlook to 5-9% and lifted its adjusted EPS range to $12.50-$13.10.

The company continues to build momentum through new customer engagements across its end markets. Recent project awards in industrial automation and infrastructure underscore sustained demand for its solutions. Meanwhile, data centers remain a key growth driver, with customers investing in facility upgrades and new capacity to improve operational reliability, energy efficiency and deployment speed.

However, the Lifecycle Services segment has continued to face weak organic demand, as customers delay larger capital projects while maintaining focus on smaller productivity improvements and modernization initiatives.

The Zacks Consensus Estimate for HON & ROKThe Zacks Consensus Estimate for HON’s 2026 earnings per share (EPS) implies a year-over-year decline of 58%. Honeywell’s EPS estimates for both 2026 and 2027 have plunged over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for ROK’s fiscal 2026 EPS implies year-over-year growth of 24%. The EPS estimates for both fiscal 2026 and fiscal 2027 have been raised over the past 60 days.

Image Source: Zacks Investment Research

Price Performance and Valuation of HON & ROKPost spin-off of its Aerospace business, Honeywell shares have gained 7.9%, while Rockwell stock has lost 3.4% over the same time frame.

Image Source: Zacks Investment Research

Honeywell is trading at a forward 12-month price-to-earnings ratio of 27.06X, above its median of 19.85X over the past year. Rockwell’s forward earnings multiple sits at 32.41X, close to its median of 31.46X over the same time frame.

Image Source: Zacks Investment Research

Final Take on HON & ROKHoneywell Technologies’ market leadership position and diversified product portfolio, weakness in the Process Automation and Technology unit and rising operating expenses pose a threat to its near-term catalysts. The spin-off of the Aerospace business will also likely weigh on its top and-bottom-line results in the quarters ahead. The downward estimate revision activity in earnings warrants a cautious approach for existing investors.

In contrast, Rockwell’s steady demand across discrete, hybrid and process markets, along with its productivity measures and pricing actions, will likely drive its long-term performance. Despite its steeper valuation, ROK seems to be a better pick due to strong estimates and better prospects for sales and profit growth.

While ROK currently carries a Zacks Rank #3 (Hold), HON has a Zacks Rank #5 (Strong Sell).

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

Bowie, MD, July 28, 2026 (GLOBE NEWSWIRE) -- Blink Charging Co. (NASDAQ: BLNK) (“Blink” or the “Company”), a leading global owner, operator, and provider of electric vehicle (EV) charging equipment and services, today announced that it has received formal notice from The Nasdaq Stock Market LLC ("Nasdaq") on July 28, 2026, granting the Company an additional 180 calendar day period, through January 25, 2027, to regain compliance with Nasdaq's minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).

As previously disclosed, the Company requested an extension for additional Nasdaq compliance period on July 7, 2026, as the Company continued the listing requirement for market value of publicly held shares and all other applicable requirements for initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement. There can be no assurance that Nasdaq will grant the requested extension or that the Company will regain compliance within the applicable compliance period. Blink will continue to monitor its compliance status and will provide updates as appropriate.

###

About Blink Charging

Blink Charging Co. (Nasdaq: BLNK) is a global leader in electric vehicle (EV) charging equipment and services, enabling drivers, hosts, and fleets to easily transition to electric transportation through innovative charging solutions. Blink’s principal line of products and services include Blink’s EV charging network (“Blink Network”), EV charging equipment, and EV charging services. The Blink Network uses proprietary, cloud-based software that operates, maintains, and tracks the EV charging stations connected to the network and the associated charging data. Blink has established key strategic partnerships for rolling out adoption across numerous location types, including parking facilities, multifamily residences and condos, workplace locations, health care/medical facilities, schools and universities, airports, auto dealers, hotels, mixed-use municipal locations, parks and recreation areas, religious institutions, restaurants, retailers, stadiums, supermarkets, and transportation hubs.

For more information, please visit https://blinkcharging.com/

Forward-Looking Statements 

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should” or other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of Blink Charging and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including achieving projected revenue, adjusted EBITDA and gross margin targets as described in Blink Charging’s periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Blink Charging undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

  Blink Investor Relations Contact
Vitalie Stelea

[email protected] Blink Media Contact
Felicitas Massa
[email protected]

Prince Al Waleed bin Talal Al Saud, a member of the Saudi royal family, has purchased a 5% stake in Lucid Motors, increasing the Kingdom’s overall ownership of the electric vehicle company.

A new filing with the U.S. Securities and Exchange Commission published Tuesday shows that the billionaire prince recently purchased a little more than 19 million shares. In a post on X, he wrote that his investment office made the purchase when Lucid’s market cap was below $2 billion.

That happened on July 14, when an electric vehicle blog published a report claiming that Lucid was considering either filing for bankruptcy protection or being taken private by Saudi Arabia’s sovereign wealth fund. Lucid strenuously denied the reports, and the company’s stock price has since rebounded.

“We don’t comment on individual investments, but we are aware and appreciate the independent vote of confidence,” Lucid Motors’ chief communications officer Nick Twork said in a statement to TechCrunch.

The share purchase comes in the middle of a major restructuring effort kicked off by Lucid’s newly appointed CEO, Silvio Napoli, who cut 18% of the workforce in June in an effort to “simplify the company.” That followed a similarly large layoff earlier this year before Napoli took over.

Lucid Motors has been majority-owned by the wealth fund — known as the Public Investment Fund, or PIF — since its initial investment in 2018. That investment came after Saudi Arabia considered, but ultimately abandoned, plans to take Tesla private. The PIF has owned roughly 60% of Lucid Motors since the EV maker merged with a special purpose acquisition company in 2021, a transaction that brought it to public markets and raised $4 billion.

The Saudis have remained a major source of financial support for Lucid Motors since it went public, buying up shares and lending billions of dollars as the company has struggled to reach a mass market of EV buyers in the U.S. and abroad.

Prince Al Waleed bin Talal has a history of investing in U.S. tech. Through his holding company, he was a major shareholder of Twitter when it was still public. In 2022, he initially balked at Elon Musk’s attempt to buy the social media company. But he quickly reversed course and cozied up to Musk and became the second-largest shareholder of Twitter after Musk took it private. (It’s unclear whether he has retained that stake through the company’s evolution into X and its subsequent merger with xAI, and now into SpaceX.)

He also owns stakes in Snap and Deezer and is often referred to as the “Arabian Warren Buffett,” according to his website.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.

You can contact or verify outreach from Sean by emailing [email protected] or via encrypted message at okane.01 on Signal.

JetBlue Airways Corporation (JBLU) Q2 2026 Earnings Call July 28, 2026 10:00 AM EDT

Company Participants

Koosh Patel - Director of Investor Relations
Joanna Geraghty - CEO & Director
Martin St. George - President
Ursula Hurley - Chief Financial Officer

Conference Call Participants

Michael Linenberg - Deutsche Bank AG, Research Division
Jamie Baker - JPMorgan Chase & Co, Research Division
John Godyn - Citigroup Inc., Research Division
Brandon Oglenski - Barclays Bank PLC, Research Division
Duane Pfennigwerth - Evercore ISI Institutional Equities, Research Division
Savanthi Syth - Raymond James & Associates, Inc., Research Division
Catherine O'Brien - Goldman Sachs Group, Inc., Research Division
Ravi Shanker - Morgan Stanley, Research Division
Thomas Fitzgerald - TD Cowen, Research Division
Scott Group - Wolfe Research, LLC
Andrew Didora - BofA Securities, Research Division
Atul Maheswari - UBS Investment Bank, Research Division

Presentation

Operator

Good morning, everyone. My name is Alexandra. I'd like to welcome everyone to the JetBlue Airways Second Quarter 2026 Earnings Conference Call. As a reminder, today's call is being recorded. [Operator Instructions] I would now like to turn the call over to JetBlue's Director of Investor Relations, Koosh Patel. Please go ahead, sir.

Koosh Patel
Director of Investor Relations

Thanks, Alexandra. Good morning, everyone, and thank you for joining us for our second quarter 2026 earnings call. This morning, we issued our earnings release and a presentation that we will reference during this call. All of those documents are available on our website at investor.jetblue.com and on the SEC's website at www.sec.gov.

In New York to discuss our results are Joanna Geraghty, our Chief Executive Officer; Marty St. George, our President; and Ursula Hurley, our Chief Financial Officer. During today's call, we will make forward-looking statements about our outlook, strategy and future performance. These statements are based on our current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release and

Chipotle Mexican Grill (CMG +1.22%) reports second-quarter results after the market closes on Wednesday, July 29, with its earnings call set for 4:30 p.m. ET.

At about $33 as of this writing, shares sit about 30% below their 52-week high of $46.61, and about 18% above their 52-week low. Meanwhile, the 35 analysts covering the burrito chain carry an average price target of about $43 -- roughly 30% above the stock.

The market, in other words, is priced as if the growth stock's best days are behind it. But the analysts, on average, don't seem to believe that. Wednesday's report should say a lot about which side has it right, and the answer arguably hinges on two lines deep in the release: transactions and restaurant-level margin.

Image source: The Motley Fool.

The number to watch is transactions For most of 2025, Chipotle's problem was that fewer people came. Comparable restaurant sales fell 4% year over year in the second quarter of 2025, driven by a 4.9% drop in transactions. The fourth quarter was better but still negative, with comparable sales down 2.5% on a 3.2% transaction decline.

For the full year, comparable sales fell 1.7%, with transactions down 2.9%, even as a higher average check offset part of the decline.

The first quarter of 2026 broke the pattern. Comparable sales rose 0.5%, and the growth came from traffic. Transactions increased 0.6%, while the average check slipped 0.1%.

It's a modest number, but I'd argue it's the right kind -- more customers, not just higher prices. CEO Scott Boatwright said the quarter "exceeded expectations" as the company advanced its "Recipe for Growth" strategy.

Worth noting, too: the quarter Chipotle is about to report laps that minus-4% period from a year ago, the softest comparison on the calendar. If transactions can't grow against that bar, the recovery case weakens considerably.

The rest of the growth machine never stopped, either. First-quarter revenue rose 7.4% year over year to $3.1 billion. The company opened 49 restaurants during the period, 42 of them with a Chipotlane drive-through lane, bringing its base to about 4,090 company-owned locations. And digital orders ran at 38.6% of food and beverage revenue.

Full-year guidance calls for 350 to 370 new locations, including 10 to 15 run by international partners. That works out to nearly a new restaurant a day.

What the recovery is costing Traffic is coming back at a price, though. Chipotle's adjusted restaurant-level operating margin (the profitability of the restaurants themselves, before corporate costs) was 23.7% in the first quarter, down from 26.2% a year earlier. Operating margin fell to 12.9% from 16.7%. And non-GAAP (adjusted) earnings per share declined 17.2% year over year to $0.24.

So Wednesday's report has to show two things moving the right way at once. A second consecutive quarter of positive transactions would show the traffic turn is holding. And an adjusted restaurant-level margin near the first quarter's 23.7%, rather than another step down, would show the company isn't simply buying its customers back.

Guidance matters, too. Management's current outlook calls for about flat comparable sales in 2026. Holding that line, or nudging it higher, would say the first quarter wasn't a fluke.

Meanwhile, the valuation bar the stock has to clear is not demanding.

Today's Change

(

1.22

%) $

0.41

Current Price

$

33.61

At about 29 times earnings, Chipotle trades at about the same multiple as the S&P 500, and at about 27 times forward earnings estimates. At its 52-week high, the market paid nearly $47 for this business. It now pays about $33.

Of course, a cheaper-than-usual Chipotle isn't automatically a buy. Restaurant margins are still sliding, and the traffic recovery is, so far, exactly one quarter old. A single quarter could easily prove to be noise.

So, should investors buy ahead of the report? I personally wouldn't. At a market multiple, Chipotle doesn't need a heroic quarter, just confirmation. But with the whole case resting on one quarter of positive traffic, waiting a day for proof seems like a fair trade. If transactions hold positive and the margin stops sliding, I'd get interested, even at a somewhat higher price. If traffic flips negative again, the market's skepticism will have been right, and a better entry point could follow.

Wednesday afternoon, the transaction line is the first number I'll check.