Key Takeaways Nokia beat earnings estimates as comparable gross margin rose to 46% and operating margin reached 9%.NOK's AI and Cloud revenue more than doubled, led by Optical Networks and IP Networks growth.Nokia reaffirmed euro 2.1B-2.6B operating profit guidance despite negative quarterly cash flow. Nokia Corporation's (NOK - Free Report) latest quarterly results reflected both encouraging operational progress and ongoing industry challenges. The company reported earnings that exceeded expectations, supported by stronger margins and robust performance in several businesses, but revenue came in slightly below forecasts as telecom spending remained uneven across key markets. The quarter illustrates how Nokia is benefiting from growing demand for AI networking and cloud infrastructure while continuing to navigate restructuring efforts and cyclical carrier investment.
Key Takeaways From Nokia's Quarterly ResultsNokia's latest quarter demonstrated improving operational execution despite a mixed top-line performance. The company reported an earnings beat as stronger margins and disciplined cost management helped offset softer-than-expected revenue. Comparable gross margin increased to 46%, while comparable operating margin reached 9%, reflecting improved profitability even as reported results continued to be affected by restructuring-related charges. Management also reaffirmed its full-year comparable operating profit outlook, indicating confidence that underlying business trends remain on track.
The results suggest Nokia is making progress on improving the quality of its earnings rather than simply pursuing revenue growth. Higher-margin businesses and ongoing efficiency initiatives supported profitability, although uneven customer spending continued to weigh on overall sales performance.
Image Source: Zacks Investment Research
The Growth Drivers Behind Nokia's ResultsNetwork Infrastructure remained Nokia's strongest-performing segment, driven by continued momentum in Optical Networks and IP Networks as enterprises and hyperscale cloud providers expanded AI infrastructure investments. AI and Cloud revenues more than doubled from the prior-year period, highlighting the company's growing exposure to structural technology trends beyond traditional telecom spending.
Technology Licensing also remained an important contributor by generating recurring royalty income from Nokia's extensive patent portfolio. Regionally, the company saw encouraging performance across the Americas and EMEA, while results in APAC reflected a more mixed demand environment. Similar AI-driven networking opportunities are also supporting industry peers such as Cisco Systems (CSCO - Free Report) and Ciena Corporation (CIEN - Free Report) as cloud infrastructure investment continues to accelerate.
Why Cash Flow Deserves AttentionWhile profitability improved, cash flow remained an area investors should monitor. Nokia reported negative operating cash flow and free cash flow during the quarter, primarily reflecting working capital movements, restructuring-related cash payments and ongoing capital investments. These factors pressured near-term cash generation despite stronger operating performance.
Even so, the company continues to maintain a solid liquidity position, providing flexibility to fund strategic investments, restructuring initiatives and manufacturing expansion. Management expects cash flow to improve as working capital normalizes and operational efficiencies continue to take effect.
Image Source: Zacks Investment Research
What Nokia's Outlook Says About Future ResultsManagement reaffirmed its full-year comparable operating profit guidance of €2.1 billion to €2.6 billion and continues to expect solid free cash flow conversion over the course of the year. The company also anticipates continued strength in Network Infrastructure, supported by growing demand for Optical Networks and IP Networks tied to AI and cloud deployments.
Alongside these growth opportunities, Nokia continues investing in manufacturing capacity and technology development to support future demand. While telecom spending remains uneven, management believes expanding exposure to enterprise networking and AI infrastructure should help improve the company's long-term financial profile.
How NOK's Ratings Reflect the Financial PictureNokia currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of C, Momentum Score of A and VGM Score of B. These ratings reflect a company that is showing improving operational execution and strong momentum while still working through restructuring activities and uneven revenue trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, Nokia's latest financial results point to a business that is gradually strengthening its fundamentals. Margin improvement, Network Infrastructure growth and rising AI-related demand provide encouraging signs for the future, while cash flow execution and telecom market conditions remain important areas to watch. The current Hold rating reflects this balanced financial picture as the company's transformation continues.
SummaryAlibaba is rated bullish with a $203.29 target, implying 71% upside, driven by AI-led transformation and ecosystem integration.Qwen AI agent is deeply embedded in BABA’s e-commerce, enhancing customer engagement and merchant efficiency and driving token-based monetization.BABA’s Cloud+AI segment is now a core growth engine, with external revenue surpassing $5.3B and triple-digit AI growth for 11 straight quarters.SOTP valuation applies 18x P/E to e-commerce and 3x P/S to AI+Cloud, reflecting robust growth, but macro headwinds and high capex remain key risks.Editor's note: Seeking Alpha is proud to welcome Yudan Tian as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) because every quarter AI capex grows larger, and NVIDIA collects at each layer. Hyperscalers order racks, sovereigns order factories, enterprises order runtime. That is the conviction.
The Thesis in One Sentence NVIDIA monetizes today’s hardware cycle at rack scale while building the software and networking tollbooth for the next one. Jensen Huang framed it plainly on the last call: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” The custom thesis is the same one management executes: turnkey Blackwell racks proprietary NVLink interconnects capture today’s capex, then NIM microservices, CUDA, and NVLink Fusion fabric licensing turn one-time hardware sales into structural, compounding cash flow.
Three Reasons the Money Keeps Going Here First, operating leverage is delivering. Fiscal 2026 revenue landed at $215.9 billion, up from $130.5 billion the year prior, with net income of $120.1 billion and operating margin of 60.4%. SG&A fell from 9.0% of revenue in FY2023 to 2.1% in FY2026. Companies do not scale like this without pricing power.
Second, the current quarter confirms the story. Q1 FY2027 revenue hit $81.615 billion, beating consensus by 3.16% on non-GAAP EPS of $1.87, a fourth straight beat. Data Center revenue reached $75.246 billion, up 92% year over year, with networking growing 199%. Gross margin came in at 75.0%. Q2 guide points to $91.0 billion in revenue.
Third, valuation remains reasonable. Forward P/E sits at 23 with a PEG of 0.559. Return on equity is 114.3%. Management authorized an $80.0 billion repurchase and lifted the dividend from $0.01 to $0.25 per share. Retirement accounts get paid to wait.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Why Not the Obvious Alternatives The two names I get asked about are Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL). Broadcom’s CEO targets over $100 billion in AI revenue by 2027. That is a 2027 aspiration. NVIDIA already printed $75.2 billion in Data Center revenue in a single quarter. Marvell trades at 47x forward earnings, roughly double NVIDIA’s 23 forward multiple, for slower growth. I would rather own the platform every custom silicon design still has to interconnect with.
The Risk I Refuse to Wave Off China is the real risk. Huang called it out directly: “Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business.” The company took a $4.5 billion H20 inventory charge and shipped zero H20 units to China in Q1 FY2027. That is real money. It has not changed my thesis because NVIDIA grew Data Center 92% year over year with China effectively zeroed out, and total supply commitments now stand at $119.0 billion. The rest of the world is absorbing the capacity.
Why the Buy Button Stays Active Analyst consensus is 58 buys to 1 sell with a $302.31 target. This works as long as AI factories keep growing, software attach keeps rising, and NVLink remains the fabric everyone standardizes on. Every quarter so far, that is exactly what has happened. Until that pipeline changes, my money keeps going in.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Microsoft, Meta and Nvidia are among 25 tech organizations calling on U.S. policymakers to avoid placing “premature restrictions” on open-weight AI models or “sweeping restrictions” on distillation.
In an open letter dated Friday (July 24), the organizations pointed to the benefits of the open-source software movement that began in the 1980s and said that open-weight models make advanced artificial intelligence more accessible, adaptable and widely available.
The letter said open weights enable organizations to build on advanced AI models without having to train one from scratch, let them match the right model to the right job, allow competition that spurs innovation and drives down costs, enable customers to avoid being locked into a single provider, give defenders the tools they need to respond to cybersecurity attackers, and let a broad community improve the models.
“A strong AI ecosystem is not a foregone conclusion,” the letter said. “Policymakers have an important opportunity to act. This includes expanding access to compute for startups and researchers, investing in shared training assets (datasets, tools, evaluation frameworks), and keeping the frontier plural by avoiding premature restrictions on open models that stifle competition or drive innovation overseas. These measures must also look at how strong application layers can expand sovereign use of AI across the economy.”
The letter also addressed distillation, saying this is a widely used technique that reflects the open-source software movement’s tradition of learning from and building upon existing technologies. The letter added that the legitimate concerns raised by unlawful efforts to extract value from closed models should be addressed through targeted legal and commercial frameworks rather than “sweeping restrictions.”
“In shaping this ecosystem, policymakers should be careful not to conflate legitimate model-development techniques with misappropriation,” the letter said.
Together with Microsoft, Meta and Nvidia, the signers of the open letter include American Innovators Network, Andreessen Horowitz, Arcee AI, Arena, Black Forest Labs, Box, CrowdStrike, Dell Technologies, Emergence Capital, Hugging Face, IBM, The Linux Foundation, Mariana Minerals, Mistral, Mozilla, Palantir, Perplexity, Reflection, Replit, ServiceNow, Telnyx and Y Combinator.
Microsoft Chairman and CEO Satya Nadella shared the letter in a post on X and said: “Open-weight models are essential to a healthy AI ecosystem. Together with others across our industry, we are outlining a path for open-weight models to strengthen American competitiveness and expand economic opportunity, while protecting national security.”
Nvidia Founder and CEO Jensen Huang shared the letter in what he said was his first post on X, saying: “Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty. The world needs both frontier closed models and frontier open models.”
While OpenAI did not sign the letter, CEO Sam Altman shared Huang’s post in his own post on X and said: “I want the US to win in AI both in open source and proprietary models, and I am glad to see this.”
It was reported July 10 that the Trump administration’s recent restrictions on access to the most advanced U.S. AI models are accelerating enterprise interest in open-source models.
On Tuesday (July 21), it was reported that the White House will examine whether Chinese AI models have been distilled from their U.S. counterparts.
Item 1 of 3 NVIDIA logo and word "Artificial Intelligence" are seen in this illustration taken July 20, 2026. REUTERS/Dado Ruvic/Illustration
[1/3]NVIDIA logo and word "Artificial Intelligence" are seen in this illustration taken July 20, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
SummaryCompaniesTwo dozen companies, including Meta and IBM, sign letterThey urge lawmakers to avoid 'premature restrictions' on open-source AI modelsUS lawmakers propose AI model kill switches after a rogue OpenAI cyberattackSAN FRANCISCO, July 24 (Reuters) - Nvidia (NVDA.O), opens new tab, Microsoft (MSFT.O), opens new tab and other tech heavyweights made a public case to lawmakers on Friday in favor of open-source AI models, wading into a debate roiling the business and policy worlds over who controls the powerful technology.
In a letter posted on X and also signed by two dozen companies and groups including Meta Platforms (META.O), opens new tab and IBM , Nvidia CEO Jensen Huang said that lawmakers should avoid "premature restrictions on open models that stifle competition or drive innovation overseas."
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The letter adds to the growing debate about open-source models that are harder to regulate, such as Nvidia's own and those released in recent weeks by Chinese labs, and the closed-source models controlled by specific companies such as OpenAI and Anthropic.
In recent months, Silicon Valley business leaders have bristled at the cost of closed source models. The CEOs of Microsoft and defense contractor Palantir Technologies (PLTR.O), opens new tab have publicly argued that open-source models their customers can run inside their own data centers will help control AI costs.
Tech leaders have also chafed at controls that OpenAI and Anthropic build into their models. Hugging Face, the AI coding collaboration site that was hacked by a rogue OpenAI model, this week said that it had to use a Chinese open-source model to defend against the attack because closed-source models have restrictions on use for cybersecurity work.
At the same time, U.S. lawmakers alarmed by the rogue OpenAI cyberattack proposed legislation that would require a "kill switch" for AI models, and President Donald Trump's administration is weighing sanctions on Chinese open-source model makers over alleged theft of U.S. closed-source technology.
The letter from Nvidia and other companies acknowledged the concerns about technology theft but argued they should be addressed "through targeted legal and commercial frameworks rather than sweeping restrictions."
"Relying solely on closed models is not inherently safe: they can be breached, misused, or fail in ways that outsiders cannot detect," the letter said. "Open weight models, on the other hand, allow a broad community of researchers and developers to examine their behavior, identify vulnerabilities, develop safeguards, and improve them over time."
Reporting by Stephen Nellis in San Francisco; Editing by Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Shares in the Magnificent 7 tech stocks have slumped this week amid investors' concerns about massive spending by hyperscalers on artificial intelligence infrastructure amid uncertainty about the global economy due to the resumption of hostilities in the Iran war.
The so-called Magnificent Seven tech stocks experienced their biggest one-day drop in over a year on Thursday, with Bloomberg reporting that an index of the group fell 4.8% and erased about $787 billion in market value – the steepest single day decline since April 2025.
The report noted that as of Thursday's close, the Mag Seven index was down about 11% from the record high it reached in late May, with about $2 trillion in market cap wiped out.
As of Friday morning, six of the Mag Seven stocks were down over the last five days of trading, with Tesla down over 19%, while shares in Google parent Alphabet (-8.5%), Amazon (-6.3%), Meta (-6%), Microsoft (-1.3%) and Apple (-0.4%) were also down. By contrast, Nvidia shares are up about 1.9% in the last five days.
TESLA TOUTS 380,000 UNSUPERVISED ROBOTAXI MILES WITH 'ZERO NOTABLE INCIDENTS'
Traders work on the floor of the New York Stock Exchange (NYSE) in Lower Manhattan. (Michael Nagle/Bloomberg via Getty Images)
Tech stocks' slide steepened after Alphabet and Tesla released their earnings report after Wednesday's trading session, with both companies reporting large capital expenditures this year.
Alphabet announced plans to spend about $200 billion on capex this year, up from a prior estimate of $190 billion, with the higher spending on AI data centers and infrastructure contributing to the company's quarterly cash flow turning for the first time since Google went public, per Bloomberg's report.
"Alphabet's higher investment outlook helps reinforce our view that the AI infrastructure buildout remains a durable theme," said Edward Jones senior analyst Brian Therien. "However, the negative share-price reaction may indicate that investors are becoming more focused on returns generated on AI-related investments."
GOOGLE LAUNCHES GLOBAL STUDY OF MILLIONS OF AI CHATS TO UNDERSTAND HOW PEOPLE USE ARTIFICIAL INTELLIGENCE
Tesla CEO Elon Musk said that the company needs to spend as much as it can on capital expenditures without being wasteful. (Richard Bord/WireImage)
Tesla's profits came in well below the estimates of Wall Street analysts amid a ramp up in spending, with CEO Elon Musk saying on the company's earnings call that 2026 will be a "massive capex year" and that the company "should be spending on capex as fast as we can – spend as fast as we can without it being too wasteful."
The company's spending aims to enhance its AI capabilities as well as boosting production of Optimus humanoid robots, as well as robotaxis and autonomous vehicles.
ELON MUSK LOSES TRILLIONAIRE STATUS AFTER TECH SELL-OFF ERASES BILLIONS FROM FORTUNE
Ticker Security Last Change Change % NVDA NVIDIA CORP. 208.76 -3.30 -1.56% AAPL APPLE INC. 321.66 -4.23 -1.30% MSFT MICROSOFT CORP. 381.58 -8.76 -2.24% GOOGL ALPHABET INC. 317.69 -24.40 -7.13% AMZN AMAZON.COM INC. 233.66 -11.19 -4.57% META META PLATFORMS INC. 606.10 -21.07 -3.36% TSLA TESLA INC. 319.69 -54.32 -14.52% Ryan Lee, senior vice president of product and strategy at Direxion, said in a note that, "While Tesla continues to invest heavily in AI and robotics, monetization remains the central concern following the earnings miss."
"Tesla has become the physical AI story, with the potential to bring artificial intelligence into consumers' everyday lives through autonomous vehicles and robotics. The question is how quickly those investments can begin supporting the valuation," Lee added.
As calls for artificial intelligence regulation continue to pick up steam in Washington, D.C., a group of 25 prominent tech and AI companies have signed a joint letter urging lawmakers not to be overly restrictive, particularly regarding open-weight AI models.
Apparently, the movement is important enough for Nvidia CEO Jensen Huang to make the letter his first post on the social platform X.
Companies that signed onto the letter include Palantir, Microsoft, Meta, and Dell, among many other big hitters.
Open-weight AI models run on their own infrastructure and can be accessed and modified by anyone. The models can also become more sophisticated without training from the beginning or paying high prices.
Here’s why Huang and other prominent AI CEOs are pushing the letter so strongly.
Image source: Nvidia.
Winning the AI raceCurrently, the leading large language models developed by players like OpenAI and Anthropic are closed-loop and therefore proprietary.
Recently, however, open-weight models coming out of China have started to gain traction and release models that they believe are competitive with U.S. offerings.
A Chinese start-up called Moonshot AI released its Kimi K3 model, which it said can outperform several older models produced by Claude and ChatGPT.
What’s also interesting about this achievement is that China is not supposed to have access to Nvidia’s most advanced chips for training its LLMs, due to export restrictions.
Now, the White House has accused Moonshot of violating these restrictions and of distilling U.S. LLMs. The company has not responded to these allegations as of this writing.
Regardless, these events seem to have executives like Huang concerned that the U.S. may lose its dominance in AI, particularly if regulation is too tight.
“A strong AI ecosystem is not a foregone conclusion. Policymakers have an important opportunity to act. This includes expanding access to compute for startups and researchers, investing in shared training assets (datasets, tools, evaluation frameworks), and keeping the frontier plural by avoiding premature restrictions on open models that stifle competition or drive innovation overseas,” the letter stated.
The letter also acknowledged that open weight models do carry risk because once released, the original developer loses control, and model modifications are difficult to track or rectify.
The pros of open weight LLMs include increased competition and more broadly distributing the benefits of AI, “rather than concentrated in a few hands.”
Why investors should careWhether it’s due to concerns about AI-driven job losses, higher electricity costs, or data centers being built in communities, the topic of AI regulation continues to become more important.
Interestingly, the U.S. company Hugging Face, an open-source AI platform, recently used one of China’s open-weight models to counter a cyberattack launched by renegade OpenAI models.
The company said Claude’s most advanced models were not able to diagnose the attack because of the model’s barriers. However, it’s also easy to imagine how losing control over open-weight LLMs could be daunting.
Investors need to pay close attention to AI regulation for a few reasons.
For one, it could have a significant impact on closed-loop players like Anthropic and OpenAI, which are reportedly gearing up for massive initial public offerings later this year. While open-weight AI models may not necessarily outperform closed-loop ones, they would most likely eat into their margins.
I also think the fact that Huang and so many other executives are pushing this letter so hard also makes it clear that regulation is a big issue and potential risk to the AI trade.
Semiconductor stocks delivered a solid performance in 2025, and that momentum has carried into 2026, fueled by the relentless excitement surrounding artificial intelligence (AI), particularly generative AI.
While a recent market pullback has rattled investors, chipmakers tied to AI continue to attract strong interest as sustained demand keeps revenue growth on track.
Given the upbeat sentiment, investing in semiconductor funds such as Janus Henderson Global Technology and Innovation Fund (JNGTX - Free Report) , T. Rowe Price Science & Tech (PRSCX - Free Report) , and DWS Science and Technology A (KTCAX - Free Report) , stands out as an attractive opportunity.
AI Continues to Drive Semiconductor DemandSemiconductor stocks have surged in 2026 as companies ramp up spending on AI infrastructure. Investor enthusiasm is no longer limited to the largest chipmakers. With valuation concerns rising for some industry giants, more capital has flowed into companies specializing in networking hardware, data storage and other AI-related technologies, helping broaden the sector's rally.
NVIDIA Corporation (NVDA - Free Report) remains the dominant player in the industry by market value, while soaring demand for AI chips has also boosted memory-chip manufacturers like Micron Technology (MU - Free Report) and semiconductor equipment suppliers such as Applied Materials (AMAT - Free Report) .
Even so, elevated valuations have occasionally triggered profit-taking, leading to short-term declines despite the industry's favorable long-term outlook.
The Philadelphia Semiconductor Index (SOX) has climbed 74.2% so far this year. Meanwhile, the latest Semiconductor Industry Association (SIA) report showed that global semiconductor sales reached $298.5 billion in the first quarter, representing a 25% increase from the previous quarter.
The sector could receive another boost as agentic AI continues to gain traction, with leading technology companies investing billions of dollars in expanding AI infrastructure. Deloitte projects global semiconductor sales to hit $1 trillion in 2026, highlighting the industry's strong growth prospects as AI adoption accelerates.
Although the recent pullback has sparked some caution, the AI-driven growth story remains firmly in place. The current weakness appears to be a temporary correction rather than the end of the sector's broader upward trend.
3 Best ChoicesWe have, thus, selected three mutual funds with significant exposure to semiconductor producers. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain from the above factors. Moreover, these funds have encouraging three- and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Janus Henderson Global Technology and Innovation Fund aims for long-term growth of capital and specializes in technology. JNGTX invests the majority of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology.
Janus Henderson Global Technology and Innovation Fund has a track of positive total returns for over 10 years. Specifically, JNGTX’s returns over the three and five-year benchmarks are 35.6% and 17.4%, respectively. The annual expense ratio of 0.78% is lower than the category average of 0.97%. JNGTX has a Zacks Mutual Fund Rank #2.
To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here.
T. Rowe Price Science & Tech fund seeks to invest in long-term capital growth by investing at least 80% of net assets in common stocks of companies expected by T. Rowe Price to benefit from the development, advancement and use of science and technology. While most of PRSCX’s assets are invested in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures, and options, in keeping with the fund’s objectives.
T. Rowe Price Science & Tech has a track record of positive total returns for over 10 years. Specifically, PRSCX’s returns over the three and five-year benchmarks are 39.4% and 17.6%, respectively. PRSCX’s annual expense ratio of 0.80% is lower than the category average of 1.01%. PRSCX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
DWS Science and Technology A fund seeks growth of capital. Under normal circumstances, KTCAX invests at least 80% of net assets in common stocks of U.S. companies in the technology sector.
DWS Science and Technology A fund has a track of positive total returns for over 10 years. Specifically, KTCAX’s returns over the three and five-year benchmarks are 34.4% and 17.9%, respectively. The annual expense ratio of 0.88% is lower than the category average of 0.99%. KTCAX carries a Zacks Mutual Fund Rank #2.
To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
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American Airlines reported record Q2 revenue of $16.7 billion (+16% YoY), demonstrating successful premium service transition and commercial market recapture. The company faces a $3+ billion profit gap with legacy peers but is executing initiatives—like loyalty program growth—to close this gap. The airline forecasts a $6 billion boost in fuel prices in 2026, impacting short-term profit forecasts.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at JPMorgan Chase & Co. (JPM - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. JPMorgan Chase & Co. currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for JPM that show why this company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For JPM, shares are up 1.38% over the past week while the Zacks Financial - Investment Bank industry is up 0.22% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.41% compares favorably with the industry's 4.59% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of JPMorgan Chase & Co. have risen 11.71%, and are up 17.99% in the last year. In comparison, the S&P 500 has only moved 4.48% and 17.65%, respectively.
Investors should also pay attention to JPM's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. JPM is currently averaging 10,013,792 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with JPM.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost JPM's consensus estimate, increasing from $22.32 to $24.39 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that JPM is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep JPMorgan Chase & Co. on your short list.
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2026) - NovaRed Mining Inc. (CSE: NRED) (OTCQB: NREDF) ("NovaRed" or the "Company") is pleased to report a geological interpretation of a large, regional, high-intensity magnetic anomaly underlying the Wilmac Copper-Gold Project (the "Project"). This anomaly (see Figure 1) is interpreted to represent the western (i.e. South Princeton) portion of a large, composite batholith that includes the intrusive complex documented at the Copper Mountain Camp. This proposed composite batholith is interpreted to have been structurally segmented and vertically displaced across two regional-scale fault systems: the Boundary Fault and the Whipsaw Fault.
"The magnetic anomaly underlying the Wilmac Project is not a stand-alone feature," said Brian Goss, Chief Executive Officer of NovaRed Mining Inc. "It is interpreted to be the western segment of a much larger batholith that has been pulled apart and vertically displaced by two regional faults. The Copper Mountain Camp, actively producing copper and gold today, sits on the upthrown eastern block east of the Boundary Fault. The Wilmac anomaly sits on the downthrown western block — deeper, largely unexposed, and largely undrilled. The Whipsaw Fault represents an additional structural discontinuity that further segments the system to the west. What this means for exploration is significant: we may be looking at a single, laterally extensive magmatic system expressed in multiple fault blocks, each with independent potential to host porphyry copper-gold mineralization."
Geological Interpretation
High-resolution airborne and ground magnetic surveys, together with the Volterra 3DIP/AMT geophysical dataset acquired from the previous optionee (see News Release dated April 15, 2026), have enabled the development of a coherent regional geological interpretation of the large, high-intensity magnetic anomaly underlying the Project.
The Copper Mountain Mine and its associated intrusive complex are spatially associated with a large, broad, high-intensity magnetic anomaly east of the Boundary Fault. Geological mapping in the Copper Mountain camp documents a multi-phase intrusive complex at surface, comprising monzonite, syenite, diorite, gabbro and pyroxenite phases that collectively constitute a composite batholith. This batholith is the interpreted source of the intense magnetic anomaly in the Copper Mountain area and is the causative intrusive complex driving porphyry copper-gold mineralization currently being mined.
A comparably large, high-intensity magnetic anomaly underlies the Wilmac Project to the west, separated from the Copper Mountain anomaly by the regionally significant Boundary Fault. The Boundary Fault is a west-side-down structure, interpreted to have displaced the western block downward relative to the Copper Mountain block. The magnetic anomaly west of the Boundary Fault, underlying the Trojan-Condor Corridor of the Wilmac Project, is interpreted to represent a segment of the same batholith — now buried to greater depth on the downthrown western side of the Boundary Fault — with comparatively small intrusive exposures documented at surface across the Project (including pyroxenite, hornblendite, gabbro and diorite) interpreted to represent only the uppermost apophyses and cupolas of the underlying intrusive complex.
The Whipsaw Fault is interpreted to represent an additional, sub-parallel structural discontinuity that further segments the batholith comprising the primary South Princeton anomaly. Gabbro and diorite intrusions mapped along Whipsaw Creek — the "Whipsaw Stocks" — are interpreted as limited surface expressions of the intrusive complex in a fault block west of the Boundary Fault and east of the Whipsaw Fault. Soil geochemistry, IP chargeability, and AMT resistivity data from the Lamont and Trojan-Condor Corridor areas (see news releases dated May 11 and May 13, 2026) are broadly consistent with this interpretation, documenting anomalous copper, fertile magma signatures (Sr/Y), and transitional magma oxidation states (V/Sc) across multiple fault blocks.
Regional Context and Significance
Segmentation of a large composite batholith by regional faults is a well-documented geological phenomenon. In the Copper Mountain Camp, the intrusive complex is exposed at surface on the eastern, upthrown block. To the west, across the Boundary Fault, the equivalent intrusive complex is interpreted to be preserved at depth, shielded from erosion by its downthrown structural position and, in the eastern portion of the Project, partially covered by the Eocene Princeton Group cover sequence. This configuration is interpreted to have preserved deeper, potentially mineralized portions of the hydrothermal system that are believed to have been removed by erosion in the Copper Mountain block.
The existence of three structurally controlled segments of the batholith — the Copper Mountain block (east of the Boundary Fault), the Whipsaw block (west of the Boundary Fault and east of the Whipsaw Fault), and the Lamont block (west of the Whipsaw Fault) — implies that each segment may represent a spatially distinct target for porphyry copper-gold mineralization, with exploration potential interpreted to be largely independent across segments.
Figure 1 – Total Magnetic Intensity (TMI) map for the Wilmac Cu-Au Project and surrounding area. The area outlined in red is a previous operator's property boundary, within which the high-resolution airborne survey was flown. The results have been plotted with respect to regional TMI results available in the public domain. Note the segmented appearance of the intense magnetic anomaly evident to the southeast (the South Princeton and Copper Mountain Complex anomalies).
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9977/306501_898ab697b47db82b_002full.jpg
Next Steps
Building on this regional interpretation, the Company is advancing its 2026 field program, comprising four IP/AMT geophysical surveys across the North Lamont, West Lamont, Wilmac, and Plume grids, an expanded soil sampling campaign, and an initial drill program subject to receipt of an approved drill permit (see News Release dated June 17, 2026). The 2026 program is designed to systematically test the geophysical and geochemical response of the Lamont block, with the objective of defining drill targets that test the interpreted buried intrusive complex at depth.
Wilmac Copper-Gold Project Overview
The Wilmac Copper-Gold Project comprises 16,078 hectares of mineral tenures located within the Quesnel porphyry belt in the Similkameen Mining Division of British Columbia, southwest of Princeton. The Project is situated in a well-documented copper-gold porphyry belt and is interpreted to host potential for identification of one or more copper-gold alkalic porphyry occurrences similar in age and deposit type to those hosting the nearby Copper Mountain Mine, which currently hosts Proven and Probable Mineral Reserves of 345 million tonnes grading 0.26% copper and 0.12 g/t gold (Hudbay Minerals Inc., "Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions and Improved Three-Year Production Outlook," news release dated March 27, 2026; mineral reserves estimated in accordance with CIM Definition Standards incorporated by reference in NI 43-101).
The Project is separated from the Copper Mountain camp by the regionally significant Boundary Fault. Saleken (2013) interpreted the geological setting west of the fault to be analogous to that of the Copper Mountain Intrusive Complex, but at a shallower level of erosional exposure, with numerous small, high-level diorite, gabbro and pyroxenite intrusions interpreted to represent the uppermost portions of an underlying intrusive complex.
Located immediately west of Highway 3, the Project is road-accessible within a well-established mining district with existing infrastructure and support services.
References
Saleken, L. (2013). Compilation Report on the Tulameen Project Property, Whipsaw Target Area, Assessment Report 33,626A, filed January 31, 2013, 149 p.
Qualified Person
The scientific and technical information in this news release, including the geological interpretations described herein, has been reviewed and approved by Rick Walker, P.Geo., a Qualified Person as defined by National Instrument 43-101 ("NI 43-101"). Mr. Walker is not independent of the Company within the meaning of NI 43-101.
About NovaRed Mining Inc.
NovaRed Mining Inc. (CSE: NRED) (OTCQB: NREDF) is a mineral exploration company focused on the identification, acquisition, exploration and development of copper-gold porphyry projects in British Columbia, leveraging an artificial intelligence-enhanced geospatial technology platform that it developed to identify and evaluate prospective mineral properties. The Company's optioned Wilmac copper-gold project comprises 16,078 hectares located within the Quesnel porphyry belt in the Similkameen Mining Division, southwest of Princeton and approximately 10 kilometres west of Hudbay Minerals Inc.'s producing Copper Mountain Mine. For more information, visit novaredmining.com.
Readers are cautioned that the discussion of mineralization on adjacent or similar properties, including the Copper Mountain Mine, is not necessarily indicative of the mineralization or potential of the Wilmac copper-gold project. The Company has no interest in, or right to acquire any interest in, any such adjacent properties.
ON BEHALF OF NOVARED MINING INC.
Brian Goss
Chief Executive Officer
E: [email protected]
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the geological interpretation of the magnetic anomaly as representing the western portion of a large, composite batholith that includes the intrusive complex documented at the Copper Mountain Camp; the interpretation that the magnetic anomaly may indicate that there are three structurally controlled segments of the batholith that represent a spatially distinct target for porphyry copper-gold mineralization; the planned exploration program that the Company intends to undertake in 2026, subject to financing; and that the Company will be able to exercise its options respecting the claims comprising the Wilmac Project.
Forward-looking information is based on a number of assumptions that, while considered reasonable by the Company at the date of this news release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such assumptions include, without limitation, the availability of adequate funding in order to exercise the option agreements respecting the Wilmac Copper-Gold Project and complete the proposed exploration programs; receipt of all necessary permits and authorizations for planned exploration; the availability of qualified personnel and geophysical contractors; favourable weather and field conditions; access to the Project area; the accuracy of current geological interpretations; and the continued cooperation of the optionor under the terms of the option agreement.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking information. Important risk factors include, but are not limited to: the continued availability of capital and financing; the ability to satisfy option earn-in requirements on the timelines contemplated; adverse weather or terrain conditions that may delay or prevent fieldwork; risks inherent in mineral exploration activities; tenure grant, renewal and permitting outcomes, including under British Columbia's revised mineral tenure system; Indigenous and community consultation requirements; changes in applicable laws and regulations; the ability to retain key personnel and contractors; litigation; failure of counterparties to perform their contractual obligations; and general economic, market or business conditions. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306501
Source: NovaRed Mining Inc.
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Verizon (VZ) shares are rising after the company announced its Q2 earnings today. While the telecom giant reported a slight earnings per share (EPS) beat, reve
Verizon Communications (VZ) fell 0.36% premarket after reporting second-quarter adjusted earnings of $1.30 a share, ahead of the $1.28 analysts expected, while
U.S. stocks traded mixed midway through trading, with the Dow Jones index gaining more than 100 points on Friday.
The Dow traded up 0.20% to 51,815.71 while the NASDAQ declined 0.13% to 25,105.02. The S&P 500 also rose, gaining, 0.04% to 7,411.02.
Leading and Lagging Sectors
Real estate shares jumped by 2.3% on Friday.
In trading on Friday, information technology stocks fell by 0.8%.
Top Headline
Verizon Communications Inc. (NYSE:VZ) reported better-than-expected second-quarter earnings, while revenue narrowly missed expectations.
Adjusted earnings came in at $1.30 per share, above the analyst consensus estimate of $1.27, according to Benzinga Pro. Revenue totaled $34.25 billion, missing the $35.11 billion estimate. GAAP diluted earnings per share fell 22% year over year to 92 cents, while net income declined 22.9% to $3.9 billion.
Verizon raised its full-year adjusted EPS guidance to a range of $4.99 to $5.04 from its previous forecast of $4.95 to $4.99. The updated outlook is above the analyst consensus estimate of $4.96.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 4.3% to $88.26 while gold traded up 0.5% at $4,070.10.
Silver traded up 1.5% to $58.94 on Friday, while copper rose 0.2% to $6.3565.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 rose 0.5%, while Spain’s IBEX 35 Index gained 1.2% London’s FTSE 100 rose 0.6%, Germany’s DAX gained 0.8%, while France’s CAC 40 gained 0.4%.
Asia Pacific Markets
Asian markets closed lower on Friday, with Japan’s Nikkei 225 falling 2.73%, Hong Kong’s Hang Seng index falling 0.98%, China’s Shanghai Composite dipping 1.61% and India’s BSE Sensex falling 0.43%.
Economics
U.S. building permits declined 2.6% month-over-month to an annual rate of 1.374 million in June, above the preliminary reading of 1.367 million. The S&P Global composite PMI climbed to 53.6 in July from 51.9 in the previous month, recording its highest reading since November. The S&P Global manufacturing PMI slipped to 53.8 in July from 53.9 in June, down from market expectations of 54.3. Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways Verizon beat Q2 EPS estimates, delivered record adjusted EBITDA and raised 2026 guidance.VZ added 184,000 postpaid phone users and 348,000 broadband subscribers, led by wireless and fiber growth.VZ expanded adjusted EBITDA margin to 40.1% as stronger service revenues. Verizon Communications Inc. (VZ - Free Report) reported adjusted earnings of $1.30 per share for the second quarter of 2026, up 6.6% year over year and ahead of the Zacks Consensus Estimate of $1.27 by 2.4%. Revenues of $34.25 billion declined 0.7% year over year and missed the consensus estimate of $35.26 billion by 2.9%.
The quarter reflected continued strength in profitability and subscriber trends. Verizon delivered 184,000 retail postpaid phone net additions, 348,000 broadband net additions and record adjusted EBITDA while raising its full-year 2026 guidance for the second consecutive quarter.
VZ Revenue Mix Shows Service-Led GrowthMobility and broadband service revenues increased 2.8% year over year to approximately $23.4 billion, supported by continued wireless and broadband momentum. However, total operating revenues slipped to $34.25 billion as wireless equipment revenues declined sharply amid lower upgrade activity and the company's disciplined approach to promotional spending.
Management noted that equipment revenues fell nearly 20%, or more than $1.2 billion, primarily because customers are holding onto devices longer and Verizon is reducing device subsidy spending. The improvement in higher-quality service revenue continued to offset part of this pressure.
Verizon Expands Profitability Despite Revenue PressureAdjusted EBITDA climbed 7.2% year over year to a record $13.7 billion, while adjusted EPS increased 6.6% to $1.30. The adjusted EBITDA margin expanded to 40.1% from 37.1% a year ago, reflecting stronger operating leverage and disciplined execution.
Reported profitability, however, reflected sizable special items. Net income declined 22.9% year over year to $3.95 billion, while GAAP EPS fell to 92 cents from $1.18. The decline primarily stemmed from $1.8 billion of pretax special charges, including losses related to business dispositions, asset rationalization and severance expenses.
VZ Subscriber Trends Continue to ImproveVerizon posted 184,000 postpaid phone net additions during the quarter, marking its strongest consumer second-quarter performance in five years. Core prepaid net additions totaled 73,000, extending the company's streak of positive prepaid subscriber growth to eight consecutive quarters.
Broadband remained another bright spot. The company added 348,000 broadband subscribers, including 193,000 fixed wireless access customers and 155,000 fiber broadband customers. Verizon ended the quarter with approximately 17.1 million fixed wireless access and fiber broadband connections while generating more than 550,000 combined mobility and broadband net additions during the quarter.
Verizon Generates Strong Cash FlowCash generation remained robust during the first half of 2026. Cash flow from operations increased 9.9% year over year to $18.4 billion, while free cash flow rose 16.0% to $10.2 billion. Second-quarter cash flow from operations advanced 16.3%, and free cash flow climbed 24.4%, underscoring the company's improving earnings quality.
Capital expenditures totaled $8.2 billion through the first half as Verizon continued investing in network expansion. The company also completed $3.5 billion of share repurchases year to date and raised its full-year buyback target to as much as $4.5 billion. Net unsecured debt stood at $128.7 billion at quarter-end, with the net unsecured debt-to-adjusted EBITDA ratio at 2.5 times.
VZ Raises 2026 Earnings Outlook AgainEncouraged by strong second-quarter execution, Verizon raised its full-year adjusted EPS outlook to $4.99-$5.04, representing 6-7% annual growth compared with its prior expectation of approximately $4.90-$4.95. The company also increased its mobility and broadband service revenue growth outlook to 2.5-3% from the prior 2-3% range.
Management now expects total retail postpaid phone net additions to finish in the upper half of its 750,000 to 1 million range. Verizon reaffirmed its capital expenditure outlook of $16-$16.5 billion while projecting cash flow from operations growth of approximately 2-4% and free cash flow growth of 9-10% for 2026.
VZ’s Zacks RankVZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated (GLW - Free Report) is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.
Verizon Communications (VZ), the largest U.S. wireless provider, reported second-quarter earnings above analysts' expectations and raised parts of its full-year
Telecom Earnings Reveal a Sector That Finally Looks HealthierVerizon Communications NYSE: VZ raised its full-year 2026 outlook for mobility and broadband service revenue, adjusted earnings per share and free cash flow after reporting improved subscriber trends, lower churn and stronger operating leverage in the second quarter.
Chief Executive Officer Dan Schulman said the company’s customer-focused transformation was producing “a structural and meaningful inflection” in operating and financial performance. Verizon reported 184,000 postpaid phone net additions during the quarter, including its strongest consumer postpaid phone net-add result in five years. Total mobility and broadband net additions exceeded 550,000.
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No Space For Panic: T-Mobile Shrugs Off The Starlink ThreatThe company also reported 348,000 broadband net additions, comprising 193,000 fixed wireless access additions and 155,000 fiber additions. Verizon ended the quarter with more than 17.1 million broadband subscribers and said it remained on track to reach more than 32 million fiber passings by year-end.
Subscriber Growth and Churn Improvement Consumer postpaid phone churn was 0.84% in the second quarter, down from 0.90% in the first quarter and 0.95% in the fourth quarter of 2025. The result marked a six-basis-point improvement from a year earlier. Overall postpaid phone churn improved five basis points year over year.
SpaceX Achieves Escape Velocity With Nasdaq Fast-TrackSchulman said the company has begun growing both accounts and lines, with net new accounts positive for the past two months. During the question-and-answer session, he said Verizon expects positive new account growth in the third quarter as well.
Verizon also continued to grow its prepaid business. Prepaid net additions totaled 73,000, representing the company’s eighth consecutive quarter of positive prepaid additions. Prepaid revenue rose about $90 million, or nearly 5%, from the prior-year period.
The company attributed its improving customer economics partly to reduced promotional spending. Schulman said consumer promotional acquisition costs declined approximately 15% year over year, while promotional retention costs fell about 17%. Chief Financial Officer Tony Skiadas added that upgrade volumes declined nearly 27% from the prior year.
Financial Results and Higher Outlook Mobility and broadband service revenue totaled $23.4 billion in the second quarter, rising 2.8% year over year and improving from 1.6% growth in the first quarter. Wireless service revenue declined 0.7% to $20.8 billion, while total revenue fell 0.7% to $34.3 billion. Skiadas said lower equipment revenue, which declined by more than $1.2 billion, reflected the company’s lower upgrade volumes.
Adjusted EBITDA was $13.7 billion, up 7.2% year over year, and adjusted EBITDA margin reached 40.1%, which Skiadas said was Verizon’s highest reported level. Adjusted EPS increased 6.6% to $1.30.
Free cash flow was $6.4 billion in the quarter and $10.2 billion for the first half, up 16% from the prior-year period. Cash flow from operations for the first six months totaled $18.4 billion, up nearly 10%, while capital expenditures were $8.2 billion.
Verizon now expects:
Full-year mobility and broadband service revenue growth of 2.5% to 3%, the upper half of its prior 2% to 3% range. Third-quarter mobility and broadband service revenue growth approaching 3% year over year. Fourth-quarter mobility and broadband service revenue growth of approximately 4%. Full-year adjusted EPS growth of 6% to 7%. Free cash flow growth of 9% to 10%, up from its prior outlook of about 7% or more. Share repurchases of up to $4.5 billion for 2026, compared with its previous commitment of at least $3 billion. The company repurchased $1 billion of shares in the quarter, bringing year-to-date buybacks to $3.5 billion. It also paid $5.9 billion in dividends during the first half, for total year-to-date shareholder returns of $9.4 billion, according to Skiadas.
New Consumer Offers and Convergence Strategy In mid-June, Verizon introduced a loyalty program available to all customers, along with new Simplicity and Verizon One offerings. Simplicity is a $45 wireless plan that separates device subsidies from wireless pricing. Verizon One combines mobility and broadband for $70, including taxes and fees, on one bill.
Schulman said the new offers are designed to reduce complexity, improve customer retention and lower customer-acquisition costs. He said gross additions since the launch were about 16% above Verizon’s forecasts, while net new accounts were 31% above forecast. He also said migration from the existing base has been about one-third of what the company expected and that Simplicity has been average-revenue-per-account accretive.
Skiadas said app traffic grew by double digits after the launches, which he described as a potential leading indicator of improved churn. Verizon said its loyalty program is funded within its existing operating budget.
Fiber, AI Infrastructure and International Wireline Verizon said it sees an additional growth opportunity in AI infrastructure connectivity. The company recently signed an agreement valued at more than $1 billion with Google to use Verizon dark fiber to connect data centers. Schulman said other expected agreements could collectively represent multiple billions of dollars of revenue over the coming years.
The company said the contracts may involve either dark or lit fiber, depending on customer requirements, and that associated margins are expected to be equal to or greater than Verizon’s existing margin structure. Schulman said the AI infrastructure initiative is expected to begin contributing noticeably to revenue in 2027.
Verizon is also retrofitting certain central offices for inference edge computing. Schulman said a small initial trial of that capability sold out within 24 hours.
Separately, Verizon previously announced an agreement to form a 50-50 joint venture with BT Group plc combining their international wireline operations. The venture is expected to serve more than 3,000 joint enterprise customers and have roughly $4 billion in combined revenue at formation. Verizon expects the transaction to close in the second half of 2027 and generate approximately $200 million in annualized savings versus its current course and speed.
Verizon acquired 82 AWS-3 spectrum licenses for approximately $3.2 billion in FCC Auction 113. Skiadas said the spectrum complements Verizon’s existing holdings and can be deployed without additional capital investment once licenses are issued. The company also said it had paid off substantially all of Frontier’s debt six months ahead of schedule and ended the quarter with net unsecured debt-to-consolidated adjusted EBITDA of 2.5 times.
Finally, Verizon said its board extended Schulman’s employment contract through Dec. 31, 2028.
About Verizon Communications (NYSE:VZ)Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.
The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.
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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Qualcomm logo is displayed at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov Purchase Licensing Rights, opens new tab
July 24 (Reuters) - Smartphone chipmaker Qualcomm (QCOM.O), opens new tab has told customers it would raise prices by a percentage in the double digits due to rising costs, Bloomberg News reported on Friday, citing a letter sent to clients.
The San Diego, California-based company did not immediately respond to a Reuters request for comment. Its shares were trading down more than 1%.
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Here are some details:
The company sent the letter to customers on Friday, informing them that the price hike will go into effect for products shipped after September 1, the report said.
Reuters could not independently verify the report.
Qualcomm told customers that it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, the report said.
The report comes as Qualcomm grapples with mounting pressure in the smartphone market, squeezed by a memory chip shortage as investment is redirected toward AI infrastructure.
Qualcomm is set to report its third-quarter results on July 29.
Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
As of 11:31 AM ET, the Dow Jones Industrial Average (^DJI +0.32%) is up 0.72% to 52,082, the S&P 500 (^GSPC -0.02%) has gained 0.59% to 7,452, and the Nasdaq Composite (^IXIC -0.58%) is rising 0.09% to 25,161 as blue-chip stocks rebound from yesterday's heavy selling.
Gold is up 0.74% to $4,080.10 as of 11:31 AM ET and the 10-Year Treasury yield is up 0.04% to 4.71%.
Today's biggest movesIntel (INTC -6.14%) shares are falling 4% today as investors weigh heavy capital spending against an earnings beat, while Alphabet (GOOGL +0.42%) is seeing a modest recovery attempt. Space Exploration Technologies (SPCX -3.49%) is under pressure as space industry valuations soften today.
What this means for investorsSpaceX stock dropped to an all-time low today as investors continue to rerate the company’s valuation after its massive initial public offering (IPO) last month. Investors are focusing on buying blue-chip names today, as reports say Pakistan is considering a path to new peace negotiations between the U.S. and Iran.
Intel and Tesla are both slumping after recent earnings reports, leading to underperformance of the tech-heavy Nasdaq. Investors are growing increasingly concerned about the massive increase in capital expenditures among tech companies.
Oil prices and the conflict in the Middle East will likely continue to drive market sentiment into next week, but investors with a long-term outlook should consider using weakness to add to their favorite names.
Bank of America is an advertising partner of Motley Fool Money. Howard Smith has positions in Alphabet and Tesla. The Motley Fool has positions in and recommends Alphabet, Intel, and Tesla. The Motley Fool has a disclosure policy.
Intel (INTC) is experiencing pressure this morning despite posting impressive quarterly results and providing optimistic Q3 guidance. Investors seem to be balan
Intel Corp (NASDAQ:INTC, XETRA:INL) shares reversed sharply on Friday, falling more than 4% after an initial surge after Thursday’s bell as investors weighed a mixed picture from Wall Street analysts following the chipmaker's second-quarter results.
Intel beat expectations with $0.42 in pro-forma earnings per share, nearly double consensus estimates, on revenue that topped forecasts by 12%. Data center sales jumped 59% year-over-year, marking the company's best growth rate in 15 years, according to Bank of America. Third-quarter guidance of $16.3 billion also came in well above Street estimates.
Despite the beat, analysts were split on what it means for the stock.
Wedbush raised its price target by more than 50% to $98 but maintained a Neutral rating, citing valuation concerns. "We still struggle to justify Intel's valuation, particularly relative to its peers, and thus remain on the sidelines with regard to the stock," the firm wrote, noting that gross margins remain closer to historical lows despite favorable demand conditions.
Bank of America reiterated its Buy rating, raising 2026 through 2028 earnings estimates by 20% to 40%. The firm pointed to progress in Intel's foundry business and strength in server CPUs tied to the broader AI buildout as reasons for optimism, calling Intel's US-based manufacturing capacity and government backing "long-term competitive moats."
BofA flagged the need to fund rising capital expenditures as a risk, though it noted Intel has other levers available, including asset sales and customer prepayments.
Jefferies described the quarter as a "seventh consecutive beat and raise," driven by better pricing and record server revenue growth. The firm raised its 2026 EPS estimate by 34%. Jefferies said an increase in planned 2027 capital spending, layered on top of this year's raised $20 billion-plus budget, signals that external foundry customers are moving from evaluation toward firmer commitments.
Still, the firm cautioned that the outlook was "not thesis-changing" and pointed to a Q3 guide showing data center sales roughly flat quarter-over-quarter due to ongoing supply constraints.
All three firms highlighted supply as a limiting factor, with Wedbush noting that Intel compute remains among the hardest components to source in the server supply chain.
Management also pointed to progress on its 14A manufacturing process, telling analysts the company has hit milestones needed to deliver a key design kit in October and is stepping up investment ahead of planned production in 2027 and 2028.
Key Takeaways Intel is expanding AI across PCs, enterprise systems, edge computing and AI infrastructure.INTC ramped Intel 18A production while advancing 14A development and advanced packaging.Intel is growing AI infrastructure exposure through Xeon, networking, custom silicon and cloud partnerships. Artificial intelligence is reshaping the semiconductor industry, creating new opportunities across data centers, enterprise computing, networking and advanced manufacturing. For Intel Corporation (INTC - Free Report) , these trends are driving a broader transformation that extends well beyond its traditional PC business.
The company's ability to capitalize on AI infrastructure demand while executing its manufacturing roadmap will likely play a central role in determining its long-term growth trajectory.
Intel Pushes AI Beyond Traditional PCsIntel is expanding its AI strategy across commercial and consumer markets by integrating artificial intelligence capabilities into PCs, enterprise systems and edge computing platforms. The company has repositioned its client business around both traditional computing and physical AI applications, reflecting growing demand for local AI processing across a wider range of devices.
Beyond AI PCs, Intel continues investing in enterprise AI infrastructure, robotics and edge deployments. Its expanding portfolio enables customers to process AI workloads closer to where data is generated, supporting applications that require lower latency, enhanced security and improved real-time performance.
INTC Advances the Next Foundry CycleIntel's manufacturing roadmap continues to make measurable progress. The company has ramped Intel 18A into volume production for multiple products while reporting improving yields, higher factory output and better cycle times across its manufacturing network.
Looking ahead, Intel remains on track with Intel 14A development, including continued progress on process technology and customer engagement. At the same time, advanced packaging technologies such as EMIB-T and growing external foundry relationships highlight Intel's broader effort to transform its manufacturing business into a long-term competitive advantage serving both internal products and third-party customers.
Intel Benefits From AI Infrastructure DemandAI infrastructure demand is expanding well beyond graphics processors, creating opportunities across CPUs, networking, custom silicon and advanced packaging. Intel is benefiting from stronger adoption of Xeon processors as enterprises and hyperscale customers build increasingly sophisticated AI environments.
The company is also strengthening its position through networking products, purpose-built silicon, advanced packaging technologies and collaborations with enterprise customers and cloud providers. These initiatives support Intel's participation across multiple layers of AI infrastructure rather than concentrating on a single product category.
Advanced Micro Devices, Inc. (AMD - Free Report) continues expanding its presence in server processors and AI computing, while NVIDIA Corporation (NVDA - Free Report) remains the market leader in AI accelerators. Intel's diversified product portfolio and manufacturing capabilities provide an alternative competitive approach as enterprise AI deployments continue to broaden.
INTC Navigates Industry HeadwindsDespite favorable industry trends, Intel continues operating in a highly competitive and capital-intensive environment. Manufacturing execution remains essential as the company scales advanced process technologies while balancing production costs and customer commitments.
Broader industry challenges also remain. Supply constraints affecting leading-edge components, fluctuations in memory markets, aggressive competition across CPUs, GPUs, networking and application-specific integrated circuits, along with elevated capital spending requirements, could influence how effectively Intel converts emerging AI opportunities into sustained financial growth.
How Intel's Rating Reflects the Trend StoryIntel's strategic transformation is increasingly tied to long-term technology trends rather than the traditional PC replacement cycle. Continued execution across AI products, manufacturing and foundry services will remain critical as these opportunities evolve.
The stock currently carries a Zacks Rank #1 (Strong Buy), reflecting improving earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. However, its VGM Score of D indicates that its overall combination of value, growth and momentum characteristics remains relatively modest. The Value Score of F and Growth Score of C contrast with a stronger Momentum Score of B, suggesting the market currently places greater weight on Intel's improving operational momentum while investors continue to monitor whether long-term execution translates into stronger value and growth characteristics.
Key Takeaways Intel is expanding beyond PCs with AI, enterprise, edge computing, foundry and autonomous driving businesses.Intel's foundry utilization, yields and factory output improved, with narrower operating losses.INTC's growing AI adoption through Xeon, AI PCs, networking, packaging and cloud and enterprise partnerships. Intel Corporation (INTC - Free Report) is reshaping its business around artificial intelligence, enterprise infrastructure and advanced manufacturing as it reduces its reliance on the traditional PC market. The company's long-term investment case increasingly depends on its ability to execute across these strategic priorities while strengthening its manufacturing leadership.
Recent results suggest Intel is making progress. Stronger demand for AI infrastructure, improving foundry execution and expanding customer adoption across multiple product categories are helping reinforce confidence in its turnaround strategy.
Intel Expands Beyond the PC MarketIntel has steadily diversified beyond its legacy PC business by focusing on data-centric markets that include AI infrastructure, enterprise computing, edge computing and autonomous driving. Its operating structure now reflects this transition, with dedicated businesses serving client computing, data center and AI, manufacturing, networking and Mobileye's autonomous driving platform.
A major strategic shift has been the adoption of Intel's internal foundry operating model. By separating product development from manufacturing operations, the company aims to improve transparency, accountability and cost discipline while increasing manufacturing efficiency. The structure also supports Intel's broader ambition to become a leading foundry serving both internal products and third-party customers.
INTC Builds Momentum Across AI PlatformsArtificial intelligence has become a key growth driver across Intel's portfolio. Demand for Xeon processors continues to strengthen as enterprises and hyperscale customers expand AI infrastructure beyond graphics processors into CPUs, networking and purpose-built silicon. The company has also broadened its AI offerings with AI PCs, Arc Pro graphics solutions, networking products and advanced packaging technologies.
Intel is expanding customer adoption through partnerships spanning cloud providers, enterprise customers and industry-specific AI deployments. Continued investment in purpose-built silicon, physical AI and advanced packaging should further strengthen its position across data center, edge and enterprise workloads.
Competition remains intense from Advanced Micro Devices, Inc. (AMD - Free Report) , which continues expanding its presence in data center processors and AI accelerators. NVIDIA Corporation (NVDA - Free Report) also remains a dominant force in AI infrastructure through its GPU ecosystem, underscoring the importance of Intel's differentiated CPU, networking and manufacturing strategy.
Intel Foundry Becomes a Strategic Growth EngineIntel Foundry has become one of the company's most important long-term growth initiatives. The business reported improving factory utilization, better manufacturing yields and significantly higher factory output, while operating losses narrowed as production efficiency improved.
Management also highlighted meaningful reductions in Panther Lake wafer costs, continued progress on Intel 18A manufacturing and development milestones for Intel 14A. External customer engagement continues to expand alongside growing demand for advanced packaging services, reinforcing Intel's effort to establish foundry services as a meaningful long-term revenue driver.
INTC Faces Execution and Competitive RisksDespite encouraging progress, Intel still faces significant execution challenges. Manufacturing leadership depends on successfully ramping advanced process technologies while maintaining cost discipline and meeting customer commitments.
The competitive landscape also remains challenging across CPUs, GPUs, application-specific integrated circuits, networking and custom silicon. Elevated capital expenditures, ongoing industry supply constraints and geopolitical uncertainty could continue creating operational and financial headwinds as Intel scales its manufacturing investments.
How Intel's Rating Fits the Current ThesisIntel's long-term outlook increasingly depends on consistent execution across AI products, manufacturing and foundry services. Continued progress in these areas could strengthen its competitive positioning as enterprise AI adoption expands.
The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting improving earnings momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. However, its VGM Score of D suggests its overall combination of value, growth and momentum characteristics remains relatively weak. That weaker composite score largely reflects a Value Score of F and Growth Score of C, although the Momentum Score of B indicates comparatively stronger price and earnings momentum. Together, these measures suggest that while earnings expectations have improved, investors may still want to balance Intel's improving momentum against its more modest value and growth characteristics before making investment decisions.
Key Takeaways INTC posted 25% higher Q2 revenue and stronger profitability as manufacturing execution improved.Intel saw Data Center and AI revenue jump 59%, while foundry efficiency gains narrowed losses.INTC's outlook hinges on AI execution, foundry expansion and managing elevated capital spending. Intel Corporation (INTC - Free Report) has staged a remarkable recovery in 2026, fueled by improving financial performance and growing confidence in its artificial intelligence and manufacturing strategy. After such a sharp rally, investors are increasingly asking whether the company's operational momentum can continue supporting further upside.
While Intel is benefiting from stronger AI demand and improving execution, its long-term investment case still depends on successfully scaling its foundry business, expanding its product portfolio and managing elevated capital investments.
INTC Delivered Strong Quarterly ResultsIntel reported a strong second quarter, with revenue rising 25% year over year to $16.1 billion while adjusted earnings of $0.42 per share comfortably exceeded expectations. The company also posted meaningful improvements in profitability, with non-GAAP gross margin expanding to 41.8% as stronger manufacturing execution and improving product mix supported results.
Performance improved across the business. Client Computing and Physical AI revenue increased 13% year over year, while Data Center and AI revenue surged 59%, reflecting stronger demand for Xeon processors and enterprise AI infrastructure. Intel Foundry also delivered solid growth as higher factory output, improving yields and better operating efficiency narrowed losses and reinforced confidence in its manufacturing strategy.
Intel's Growth Drivers Continue to ExpandIntel's growth opportunities now extend well beyond traditional personal computers. The company continues expanding its AI PC portfolio while benefiting from stronger adoption of Xeon processors across enterprise, cloud and sovereign AI deployments.
Additional growth drivers include purpose-built silicon, networking products, Arc graphics processors and advanced packaging technologies. Intel is also broadening its foundry business by attracting external customers while advancing its Intel 18A and Intel 14A process technologies. Together, these initiatives create multiple potential revenue streams as AI infrastructure spending continues to expand.
Advanced Micro Devices, Inc. (AMD - Free Report) remains one of Intel's closest processor competitors, while NVIDIA Corporation (NVDA - Free Report) continues to dominate AI accelerator markets. Intel's strategy increasingly centers on competing through its combination of CPUs, advanced manufacturing, packaging capabilities and foundry services rather than relying on any single product category.
INTC Must Balance Growth With SpendingIntel's turnaround also requires substantial investment. The company continues increasing spending on manufacturing equipment, clean-room capacity, substrates and advanced process technologies to support anticipated demand across both products and foundry services.
Those investments have weighed on cash generation, with adjusted free cash flow remaining negative as capital expenditures stay elevated. Although management expects these investments to strengthen Intel's long-term competitive position, maintaining balance sheet discipline and delivering consistent manufacturing execution will remain important as the company scales production.
Intel's Valuation and Outlook in ContextIntel's improving fundamentals have been accompanied by a higher valuation following its strong share price recovery. Even so, the equity research outlook remains constructive, supported by continued earnings estimate revisions, stronger operating execution and an improving competitive position within the semiconductor industry.
Image Source: Zacks Investment Research
The stock maintains an Outperform recommendation with a 12-month price target of $115.50. That outlook assumes Intel continues executing on its AI roadmap, manufacturing improvements and foundry expansion while sustaining recent momentum across its product portfolio.
What Intel's Rating Signals for InvestorsFollowing its strong recovery, Intel appears better positioned than it was a year ago, but future returns will likely depend more on operational execution than multiple expansion. Delivering on manufacturing milestones, expanding AI adoption and improving foundry profitability remain central to the investment thesis.
The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. At the same time, its VGM Score of D indicates that its overall combination of value, growth and momentum characteristics remains mixed. The weaker Value Score of F and Growth Score of C are partially offset by a stronger Momentum Score of B, suggesting investors may benefit from balancing Intel's improving near-term momentum with a measured assessment of its valuation and long-term growth profile.
Brent closed at $100.69, the Mag 7 lost $938.7 billion, and Intel just flipped the after-hours script.
Two facts that should not feel comfortable together: oil crossed $100 while the market’s most expensive growth stocks absorbed nearly $1 trillion in lost value. That is what happens when an inflation shock collides with an AI spending bill that investors finally want explained.
The tape was not indiscriminately weak. Defense, industrials, health care, and utilities found buyers. Big Tech did not. Two markets in one, and the split is getting harder to ignore.
The Inflation Shock Met The AI Bill. The Tape Picked Sides.AI › The Capex Revolt Arrives
Alphabet fell 7.13% after lifting 2026 capital spending guidance to $195 billion to $205 billion. Cloud revenue grew 82%, but free cash flow was negative $5.9 billion. Investors did the math, then punished the entire complex: the Magnificent Seven lost roughly $938.7 billion in market value. AI demand is not the question anymore. The bill, the payback period, and the financing cost are.
Macro › Strong Labor Complicates The Fed
Initial jobless claims came in at just 187,000, another sign the labor market is not cracking. Pair that with $100 oil and a 4.706% 10-year yield, and the Fed enters next week with less room to sound relaxed. Rate expectations are shifting because the inflation and growth signals refuse to cooperate.
Defense › Backlogs Become The Signal
Lockheed Martin rose 10.54% after reporting $20.1 billion in sales and a backlog near $230 billion. RTX gained 7.33% with a $289 billion backlog. The geopolitical risk premium is now landing in signed demand, not just headlines.
Chips › Intel Flips The After-Hours Tape
Intel reported $16.13 billion in revenue and adjusted earnings of $0.42 per share, then guided third-quarter revenue above the Street’s midpoint. Shares jumped after hours. Big Tech sold off all day, but Intel reminded the market that expectations matter as much as the headline.
This Is A Rotation. Not A Liquidation.
A 2.15% Nasdaq drop feels broad until you look beneath it. Industrials gained 1.73%, health care added 1.24%, and utilities finished higher. Communication services and consumer discretionary took the hit.
Capital did not leave the market. It moved toward cash flow visibility, pricing power, and backlogs.
01 · The Tape Kept Picking
Lockheed and RTX rallied because multiyear backlogs convert uncertainty into revenue visibility. Utilities held because their cash flows look durable when growth multiples compress. This was not fear without discrimination. It was a repricing of what investors are willing to pay for distant earnings.
02 · The Discount Rate Moved
$100 oil feeds inflation risk. A 4.706% 10-year yield raises the hurdle rate. Heavy AI spending pushes more value into the future. Put those together and even excellent revenue growth can lose to a higher discount rate. A bounce is not a bottom when the math keeps getting harder.
03 · Next Week Is The Confirmation
The Federal Reserve meets while Microsoft, Meta, Amazon, and Apple report. That creates one clean test for the rotation. If yields stay elevated while megacap guidance fails to justify the spending, the market will keep rewarding current cash flow over distant promises. The tell is the 10-year yield. Watch it next week.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Intel (INTC) won broad support from Wall Street after delivering better-than-expected second-quarter results, but analysts remain divided on whether the company
"The Intel (INTC) story is largely over," argues Michael Robinson, pointing to the stock's stellar surge over recent months as a sign that "easy money" has already been made. Sean O'Hara adds that the AI spending story is real but would not put a big position on Intel due to its growth story taking time.
Intel (INTC -6.14%) stock dropped 4% through 1:25 p.m. ET Friday after reporting Q2 earnings last night. But here's the thing: Intel's news seemed pretty good.
Heading into the report, analysts expected Intel to earn $0.21 per share (pro forma) on sales of $14.3 billion. Intel actually earned twice what it was expected to -- $0.42 per share. Its sales also topped estimates at $16.1 billion.
Image source: Intel.
Intel Q2 earnings Intel grew its sales 25% year over year, the company's best performance in nearly 15 years. Earnings news was more mixed.
On the one hand, Intel beat estimates by 2x. On the other hand, these were only non-GAAP earnings -- not earnings calculated under generally accepted accounting principles (GAAP). When calculated under GAAP, Intel didn't earn a profit at all; it lost $2.16 per share, a result significantly worse than many investors may have expected after hearing Intel "beat earnings."
That's reason No. 1 why Intel stock might be down today.
Today's Change
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Current Price
$
94.08
Was Intel's news good or bad? Despite the GAAP loss, Intel's showing signs of improvement. Intel CEO Lip-Bu Tan says, "AI is driving unprecedented demand for compute" and improving margins. Gross profit margin for the quarter surged nearly 13 full percentage points to 40.4%, and GAAP operating margins flipped from negative to positive (11.1%).
That wasn't enough to produce a GAAP profit, but when turning to guidance, Intel confirmed that gross margins are continuing to improve, and should hit 41% in Q3, helping to deliver a GAAP profit of perhaps $0.31 per share this current quarter.
Best of all, free cash flow has turned positive again, with Intel reporting cash profits of $1.9 billion in Q2. Analysts are still predicting Intel will burn cash this year, but if Intel proves them wrong about that -- look out above!
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
American Express (AXP) shares declined despite reporting a Q2 earnings per share (EPS) that exceeded expectations. Investors are concerned that the company main
Gen Z is becoming American Express’ growth engine, with young customers driving faster spending growth and most new consumer account openings.
Dining is evolving into a loyalty platform, as Amex uses Resy, Tock and the proposed TheFork acquisition to connect reservations, benefits and payments.
Amex sees its closed-loop data as an AI advantage, giving it more context to verify customer intent, manage fraud and support agentic commerce.
American Express’ second-quarter earnings tell a spending story that stretches from restaurant tables to airport gates to corporate expense accounts, with artificial intelligence sitting somewhere in the middle.
Card spending rose 9% on an FX-adjusted basis in the second quarter, according to a Friday (July 24) earnings presentation. Travel and entertainment spending increased 10%, goods and services rose 9%, and consumer spending in the United States climbed 11%, its fastest growth since early 2018 excluding pandemic-distorted periods. Commercial spending, which has been considerably slower, accelerated to 5%.
The spending was broad-based across categories. Retail spending rose 13%, restaurant spending increased 10%, airlines were up 10%, and American Express travel bookings jumped 22%. Millennials and Generation Z remained the fastest-growing U.S. consumer cohorts and now account for the largest share of U.S. consumer spending on Amex cards.
CEO Stephen Squeri said during an analyst Q&A on a Friday conference call that the spending gains reflect more than new customer acquisition.
“Engagement has been really accelerated, and that’s driving a lot of the spending,” Squeri said, adding that “restaurant spend was up 10%, but when you look at Resy restaurant spend, it’s double that.”
The engagement is increasingly coming from young customers. Gen Z spending rose 40% year over year, compared with 14% for millennials, 10% for Generation X and 5% for baby boomers and older customers. Millennials and Gen Z together accounted for 38% of U.S. consumer-billed business. Meanwhile, 65% of new global consumer accounts came from those two generations.
The income story is more nuanced. Chief Financial Officer Christophe Le Caillec said during the call that young customers generally enter the Amex franchise with low income initially, but “we’re going to grow with them, and they’re going to grow with us.”
Restaurants Become More Than a Card Category Dining is also becoming a deliberate part of Amex’s strategy.
Restaurant spending is the company’s largest travel and entertainment category, and Amex is building infrastructure around that spending rather than simply collecting interchange when the check arrives. Its proposed acquisition of TheFork would add 50,000 restaurants across 11 European countries to a dining portfolio that already includes Resy and Tock.
Squeri said Amex is effectively creating smaller closed loops inside its larger payments network by connecting cardholders directly with restaurants. Amex cardholders also generate higher average tickets than non-cardholders. The platforms can additionally serve as acquisition channels by offering cardholders special access and benefits while remaining open to nonmembers.
The closed-loop argument becomes more consequential as commerce starts shifting toward AI agents.
Squeri said agentic commerce creates new questions around fraud, customer intent and AI hallucinations. Amex’s pitch is that it has information from both sides of a transaction.
“We know what the customer wanted to do, and we’ll also know what the merchant delivered,” he said during the call.
However, he cautioned against assuming agentic commerce is already mature.
“We’re sort of in the preseason,” Squeri said. “We’re not even … in the early innings.”
Amex is spending accordingly. Squeri said technology investment now includes agentic commerce initiatives that were not contemplated when the company established its original 2026 spending plans.
The business side is getting similar attention. Commercial billed business rose 5%, with U.S. small- to medium-sized businesses and large/global corporations growing at the same rate. Travel and entertainment spending among commercial customers rose 8%, twice the 4% increase in goods and services spending. Amex has also begun piloting a new expense management platform with middle-market customers, an area where management acknowledged competitive pressure from FinTech providers.
CFO Le Caillec said the stronger spending translated into 10% revenue growth, a rate that was below Wall Street’s expectations, and shares dipped 5% in early trading Friday. The company raised its full-year revenue growth forecast from a range of 9% to 10% to 10%.
American Express Company (AXP) Q2 2026 Earnings Call July 24, 2026 8:30 AM EDT
Company Participants
Kartik Ramachandran - Senior VP & Head of Investor Relations
Stephen Squeri - Chairman & CEO
Christophe Le Caillec - Chief Financial Officer
Conference Call Participants
Sanjay Sakhrani - Keefe, Bruyette, & Woods, Inc., Research Division
Ryan Nash - Goldman Sachs Group, Inc., Research Division
Donald Fandetti - Wells Fargo Securities, LLC, Research Division
Craig Maurer - Financial Technology Partners LP
Richard Shane - JPMorgan Chase & Co, Research Division
Mark DeVries - Deutsche Bank AG, Research Division
Terry Ma - Barclays Bank PLC, Research Division
Robert Wildhack - Autonomous Research US LP
Darrin Peller - Wolfe Research, LLC
Bill Carcache - Piper Sandler & Co., Research Division
Mihir Bhatia - BofA Securities, Research Division
Presentation
Operator
Welcome to the American Express Q2 2026 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded.
I will now turn the call over to Kartik Ramachandran, Head of Investor Relations. Please go ahead.
Kartik Ramachandran
Senior VP & Head of Investor Relations
Thank you, Dana, and thank you all for joining today's call. Today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC.
Today's discussion also contains non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials as well as the prior period earnings materials discussed today. All of these are posted on our website at ir.americanexpress.com. We will begin today with Stephen Squeri, Chairman and CEO; followed by Christophe Le Caillec, Chief Financial Officer. After their remarks, we'll move to Q&A.
Jeff Kagan talks about his outlook on the telecommunications industry after Verizon (VZ) showed strength in its earnings while Charter Communications (CHTR) sold off to a 12-year low. He notes key competitors like SpaceX (SPCX) entering the industry as a headwind but believes new tech brought by AI will help alleviate downside risks.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Phillips 66 (PSX - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Phillips 66 currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for PSX that show why this oil refiner shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For PSX, shares are up 9.82% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 9.82% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 20.5% compares favorably with the industry's 20.2% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Phillips 66 have risen 15.53%, and are up 66.49% in the last year. In comparison, the S&P 500 has only moved 4.48% and 17.65%, respectively.
Investors should also pay attention to PSX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PSX is currently averaging 2,574,860 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PSX.
Over the past two months, 5 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $18.26 to $21.96 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that PSX is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Phillips 66 on your short list.
Investors might want to bet on Phillips 66 (PSX - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Phillips 66 basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Phillips 66 imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Phillips 66For the fiscal year ending December 2026, this oil refiner is expected to earn $21.96 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Phillips 66. Over the past three months, the Zacks Consensus Estimate for the company has increased 44.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Phillips 66 to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Salesforce (CRM) rose 1.48% intraday after announcing that US Department of Veterans Affairs awarded it a $1.6 billion, three-year agreement to modernize care a
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying DOV stock? Here’s what analysts think:
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Three dividend-paying blue chips reported Q2 2026 earnings on the same morning, all beating EPS estimates: Verizon Communications (NYSE:VZ | VZ Price Prediction) at $45.03 looks attractive, American Express (NYSE:AXP) at $321.72 appears fairly valued, and NextEra Energy (NYSE:NEE) at $89.24 screens favorably.
Each revealed a different story beneath the headline beat, with sharply divergent market reactions.
Verizon: The Cheap Yield Story Just Got Cheaper Verizon posted adjusted EPS of $1.30 vs. $1.27 estimated, its sixth consecutive beat, and raised full-year guidance to $4.99 to $5.04 with free cash flow growth of 9% to 10%. Postpaid phone net adds swung from a loss of 9,000 to a gain of 184,000, and fiber connections jumped 43.3% to 10.9 million. Shares gained 2.76% on the report.
VZ trades at a forward P/E of 9 with a 6.24% dividend yield backed by 25+ years of uninterrupted payments and a hike to $0.7075 quarterly. The analyst target of $51.12, from 26 covering analysts with 11 Buys and 15 Holds, implies roughly 13% upside.
Bears cite $136.5 billion of unsecured debt and net debt/EBITDA of 2.5x, up from 2.2x. Free cash flow of $6.43B, up 27.12% YoY comfortably covers the payout.
At $45.03, Verizon looks attractive on valuation and yield. The stock has returned 13% YTD, ahead of the S&P 500’s 10% gain, and raised guidance plus expanded $4.5B buyback offer defensive yield and a credible growth path from emerging AI infrastructure revenue.
American Express: A Great Business at an Uncomfortable Moment AmEx beat EPS at $4.53 vs. $4.40 estimated on 9% Card Member spending growth, the fastest in three years. Revenue of $19.64B missed the $19.70B estimate grew while expenses rose 12% against 10% revenue growth, and the effective tax rate jumped to 23.6% from 18.7%. Management held EPS guidance at $17.30 to $17.90 and reinvested outperformance. Shares fell 5.61% on the earnings report.
Bulls note Platinum refresh is driving the fastest-growing portfolio in U.S. Consumer, accelerating Millennial and Gen-Z acquisition, and provisions dropped to $1.10B from $1.40B.
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The analyst target of $374.94, from 30 analysts with 14 Buys, 15 Holds, and 1 Sell, implies about 17% upside. AXP trades at a forward P/E of 20, a premium to its long-term average, and has lagged the S&P 500 with a 7.12% YTD decline.
At $321.72, American Express appears fairly valued. The franchise is intact and 11.61% one-year return shows the long-term compounder still works, but expenses outpacing revenue in a decelerating consumer environment is the wrong setup for fresh capital. Wait for a reset toward $285.29 52-week low or proof that reinvestment produces incremental revenue.
NextEra Energy: Power Demand and a Merger Catalyst NEE delivered adjusted EPS of $1.15 vs. $1.10 estimated, its fifth straight beat, with net income up 55% to $3.14B. FPL added 90,000+ customers, and NEER added 3.6 GW to a 35.1 GW backlog. Revenue of $7.53B missed the $8.15B estimate grew 12.45% YoY.
Management reaffirmed $3.92 to $4.02 adjusted EPS, targeting the high end, plus 8%+ compound EPS growth through 2032. The proposed Dominion Energy combination, expected to close H2 2027, would support 11% annual regulatory capital growth through 2032.
Shares are up 13.41% YTD and 26.86% over one year, both ahead of the S&P 500. Coverage runs 22 analysts, with 14 Buys, 7 Holds, and 1 Sell.
At $89.24, NextEra Energy screens favorably on growth and yield. Utilities rarely offer a 2.64% yield compounding near 10% annually alongside an accelerating regulatory capital base and a rerating catalyst. The analyst target of $98.80 implies roughly 11% upside and does not yet fully price the Dominion deal. Watch state and FERC approvals into 2027.
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NextEra Energy, Inc. (NEE) Q2 2026 Earnings Call July 24, 2026 9:00 AM EDT
Company Participants
Michael Dowling
John Ketchum - President, CEO & Chairman
Michael Dunne - CFO & Executive VP of Finance
Scott Bores - President & CEO
Brian Bolster - CEO & President
Conference Call Participants
Steven Fleishman - Wolfe Research, LLC
Julien Dumoulin-Smith - Jefferies LLC, Research Division
Nicholas Campanella - Barclays Bank PLC, Research Division
Jeremy Tonet - JPMorgan Chase & Co, Research Division
Carly Davenport - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Good day, and welcome to the NextEra Energy, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Michael Dowling, Director of Investor Relations. Please go ahead.
Michael Dowling
Good morning, everyone, and thank you for joining our second quarter 2026 financial results conference call for NextEra Energy. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunne, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Vice Chairman of NextEra Energy; Scott Bores, President and Chief Executive Officer of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy.
John will start with opening remarks, and then Mike will provide an overview of our results. Our executive team will then be available to answer your questions.
We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the
@LikeFolio's Landon Swan talks about Oracle (ORCL) and web trends surrounding the company. He points out that web visits for the firm are down 11% year-over-year while the stock has fallen 50% over that same time.
NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of First Solar, Inc. (NASDAQ: FSLR) between February 26, 2025 and February 24, 2026, inclusive (the “Class Period”), of the important August 24, 2026 lead plaintiff deadline.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Palantir Technologies Inc. (PLTR - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this company a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Palantir Technologies is 21.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 97.5% this year, crushing the industry average, which calls for EPS growth of 22.9%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Palantir Technologies is 665.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.4%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 50.9% over the past 3-5 years versus the industry average of 17.3%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Palantir Technologies have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.7% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Palantir Technologies a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Palantir Technologies well for outperformance, so growth investors may want to bet on it.
It has been about a month since the last earnings report for Micron (MU - Free Report) . Shares have lost about 18.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Micron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Micron Q3 Earnings Beat Estimates, Revenues Rise on AI Memory StrengthMicron reported third-quarter fiscal 2026 non-GAAP earnings of $25.11 per share, beating the Zacks Consensus Estimate by 17.39%. The company reported earnings of $1.91 per share in the year-ago quarter.
Revenues soared 345.7% year over year to $41.46 billion and surpassed the Zacks Consensus Estimate by 12.91%. Revenues jumped 73.7% sequentially. The upside was driven by robust AI-led memory demand, with data center revenues exceeding $25 billion, an annualized run rate of more than $100 billion.
Micron announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the reported quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.
The company expects approximately half or more of its revenues to eventually be under SCAs. Under the agreements signed so far, Micron projects $22 billion in cash deposits and related financial commitments, supporting longer-term supply visibility and financial predictability.
MU’s Q3 Top-Line DetailsMicron’s top-line growth benefited from tight DRAM and NAND supply, stronger pricing and accelerating demand tied to AI infrastructure. MU noted that industry demand for both DRAM and NAND continues to significantly exceed supply.
DRAM revenues were $31.3 billion, accounting for 76% of total revenues in the fiscal third quarter. DRAM revenues increased 67% sequentially, helped by low-single-digit bit shipment growth and a low-60s percentage increase in average selling price (ASP).
NAND revenues were $9.9 billion, representing 24% of total revenues. NAND revenues increased 99% sequentially, driven by a mid-single-digit increase in bit shipments and a mid-80s percentage rise in ASP.
MU’s Business Units Set RecordsCloud Memory Business Unit’s revenues were a record $13.77 billion, up 77.7% sequentially and 306.6% year over year.
Core Data Center Business Unit’s revenues were a record $11.52 billion, up 103% sequentially and 653.2% year over year.
Mobile and Client Business Unit’s revenues were a record $11.52 billion, up 49.4% sequentially and 254% year over year. The sequential revenue growth was driven by higher pricing.
Automotive and Embedded Business Unit’s revenues were a record $4.63 billion, up 71.1% sequentially and 311.2% year over year. The improvement reflected higher pricing and higher bit shipments.
MU’s Q3 Margins ExpandNon-GAAP gross margin was 84.9% in the reported quarter, up from 74.9% in the fiscal second quarter and 39% in the year-ago quarter.
Cloud Memory Business Unit’s gross margin expanded to 83% from 74% reported in the prior quarter, driven by higher pricing. The company reported Cloud Memory’s gross margin of 58% in the year-ago quarter. On a sequential basis, the core Data Center Business Unit’s gross margin improved to 87% from 74%, aided by higher pricing and a favorable mix. The company reported a Data Center gross margin of 38% in the year-ago quarter.
Mobile and Client Business Unit gross margin reached 87% compared with 79% in the prior quarter and 24% in the year-ago quarter. Automotive and Embedded Business Unit gross margin surged to 79% compared with 68% in the prior quarter and 26% in the year-ago quarter.
Non-GAAP operating expenses were $1.52 billion, up 6.8% year over year and 34% sequentially.
In the third quarter of fiscal 2026, non-GAAP operating income came in at $33.68 billion, a significant rise from $2.49 billion reported in the year-ago quarter and $16.46 billion reported in the previous quarter.
Micron’s Balance Sheet Shows Strong Liquidity LevelMU exited the quarter with $30.2 billion in cash, marketable investments and restricted cash. Liquidity was $32.2 billion at the end of the fiscal third quarter.
Micron generated $25.39 billion in operating cash flow in the quarter. Capital expenditures, net of proceeds from government incentives and asset sales, were $7.1 billion, resulting in adjusted free cash flow of $18.3 billion.
The company declared a quarterly dividend of 15 cents per share, payable on July 21, 2026 to shareholders of record as of July 6. Micron did not repurchase shares during the fiscal third quarter.
MU’s Guidance Points to More StrengthFor the fourth quarter of fiscal 2026, Micron expects revenues of $50 billion, plus or minus $1 billion. The company projects a non-GAAP gross margin of approximately 86%.
Non-GAAP operating expenses are expected to be approximately $1.65 billion. Adjusted earnings are projected at $31 per share, plus or minus $1, based on roughly 1.15 billion diluted shares.
Micron now expects supply-demand conditions for both DRAM and NAND to remain tight beyond calendar 2027. In DRAM, the company expects industry DRAM bit shipments in calendar 2026 to grow in the low to mid-20s percentage range, slightly above MU’s prior outlook. In NAND, Micron expects industry NAND bit shipments in calendar 2026 to grow approximately 20%, unchanged from its prior expectations.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 24.94% due to these changes.
VGM ScoresCurrently, Micron has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Micron has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Several semiconductor stocks lost ground Friday, reversing gains earlier in the week when big chip buyers pledged to spend more on AI.Many chip stocks have fallen from their highs in recent weeks amid a broader pullback in the AI trade. Get personalized, AI-powered answers built on 27+ years of trusted expertise.
Semiconductor stocks are resuming their recent slide.
Several semiconductor stocks lost ground Friday, reversing gains earlier in the week when big chip buyers Alphabet (GOOGL) and Tesla (TSLA) said they planned to invest heavily in AI. The PHLX Semiconductor index (SOX) was down 3% recently, as Broadcom (AVGO) and TSMC (TSM) fell 2% and Intel (INTC) tumbled more than 4% despite reporting quarterly results that blew past expectations on surging AI-related demand.
Shares of memory favorites Micron Technology (MU) and Sandisk (SNDK) were some of the biggest decliners in the S&P 500 Friday, with shares down 6% and 7%, respectively, on a day when the broader index gained. The Roundhill Memory ETF (DRAM) plunged 7%.
Why This Matters to Investors Friday’s slump could underscore weakening sentiment surrounding some of this year’s biggest AI beneficiaries amid worries about the sustainability of spending in the sector.
The moves could threaten to extend what’s been a tough few weeks for the sector amid a broader pullback in the AI trade, with the PHLX Semiconductor index’s recent slide leaving it nearly 20% off its June highs.
Gabelli Funds portfolio manager John Belton told CNBC in a televised interview Friday that the “reversion trade” pressuring some of this year’s best-performing stocks could underscore a “risk-off attitude” among investors, but that a string of strong earnings reports recently—including Intel’s—don’t justify Friday’s selloff.1
In emailed comments, Belton suggested investors may have been caught off guard by renewed tensions in the Middle East and rising Treasury yields, which tend to weigh on growth stocks as borrowing becomes more expensive. With fundamentals “potentially getting even stronger in the coming quarters,” Belton said he “would not be surprising to see a bit of a shift in sentiment” back in favor of AI stocks.
Even with Friday’s decline, Sandisk and Micron remain among the S&P 500’s strongest performers this year, with shares up some 500% and 200%, respectively for 2026. Intel shares have surged roughly 160%.
There isn't one “smoking gun” catalyst — but investors could be reacting to Chinese memory developments, Korean stock-market weakness and Intel's inability to sustain postearnings gains
New York, New York--(Newsfile Corp. - July 24, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of Class A or Class C common stock of Zillow Group, Inc. (NASDAQ: ZG) (NASDAQ: Z) between February 11, 2025 and May 7, 2026, both dates inclusive (the "Class Period"), of the important August 10, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.
SO WHAT: If you purchased Zillow common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 10, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306454
Source: The Rosen Law Firm PA
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NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN).
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Eli Lilly (NYSE:LLY | LLY Price Prediction) has accelerated despite its $1 trillion scale. Revenue grew 55.5% in Q1 2026, management raised full-year guidance by $2 billion, and the FDA cleared Foundayo, the first any-time-of-day oral GLP-1.
Our 24/7 Wall St. price target for Eli Lilly is $1,365.51, implying roughly 15% upside from the current $1,186.85. We rate LLY a buy with high (90%) confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $1,186.85 24/7 Wall St. Price Target $1,365.51 Upside ~15.1% Recommendation BUY Confidence 90% Foundayo Reset the Growth Story LLY is up 8.59% year-to-date and 50.84% over the trailing year, recovering from an April low of $903.99.
Q1 2026 delivered $19.80 billion in revenue, beating the $17.80 billion consensus, with non-GAAP EPS of $8.55 versus the $6.79 estimate. Mounjaro revenue jumped 125% to $8.66 billion and Zepbound climbed 80% to $4.16 billion.
Recent headlines mixed bullish coverage of the $6.3 billion Centessa acquisition and a $6.5 billion Houston manufacturing plant against a fresh Novo Nordisk lawsuit alleging deceptive GLP-1 comparison ads.
The Case for $1,429 and Higher Bulls argue Foundayo unlocks an oral obesity market that injectables never fully addressed. CEO Dave Ricks noted the drug can reach “over 1 billion people around the world with obesity and related conditions” with regulatory reviews underway in over 40 countries. Early launch data showed 80% of prescriptions were new-to-class.
Retatrutide, the next-gen triple agonist, delivered up to 37 pounds of weight loss in Phase 3. Morningstar flagged LLY as positioned for “industry-leading growth”. Our bull-case scenario carries the stock to $1,429.03, roughly 12.5% above current levels.
What Could Go Wrong Pricing pressures loom. Q1 realized prices fell 13%, offsetting a 65% volume gain, and Mounjaro’s inclusion on China’s National Reimbursed Drug List will pressure international prices. Novo Nordisk’s false-advertising lawsuit and emerging generic semaglutide competition add legal and competitive headwinds.
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Q1 carried $584 million in IPR&D charges plus $279 million in litigation and restructuring. Most charges reflect deliberate M&A spend (Centessa, Orna, Kelonia, Ajax) that expands the pipeline. Our bear scenario prices LLY at $1,123.10, an 11.6% drawdown.
How Eli Lilly Compares to Merck and Novo Nordisk Merck (NYSE:MRK) is the value counterpoint. Merck guided FY2026 revenue of $65.8 billion to $67 billion and non-GAAP EPS of $5.04 to $5.16, with Q1 growth of just 4.87%. That is a fraction of Lilly’s 55.5% pace, explaining why Lilly commands a forward P/E of 33x while Merck trades at mid-teens multiples. Growth still wins.
Novo Nordisk (NYSE:NVO) is the direct GLP-1 rival. Novo’s Q1 underlying adjusted sales fell 4% at constant currency, and management guided full-year growth to -4% to -12% CER after slashing Wegovy list prices by roughly 50% effective January 2027. Against that peer set, our LLY target looks reasonable.
Eli Lilly Price Prediction 2026-2030 Our 24/7 Wall St. price target of $1,365.51 reflects a buy rating with 90% confidence. Foundayo converts a large injectable-averse population into addressable demand.
The setup looks constructive if the Foundayo launch tracks to plan into Q3, and more cautious if realized prices deteriorate past mid-teens headwinds. Growth of this quality at this scale is rare.
Year 24/7 Wall St. Price Target 2026 $1,365.51 2027 $1,470 2028 $1,565 2029 $1,640 2030 $1,711.70 These projections assume Lilly executes on Foundayo, retatrutide, and pipeline acquisitions. Significant upside or downside could result from GLP-1 pricing regulation, Novo Nordisk competition, or acceleration of oral obesity adoption globally.
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Shares of ServiceNow (NYSE:NOW | NOW Price Prediction) are up 6% in Friday midday trading, changing hands at $97.36. Meanwhile, Salesforce (NYSE:CRM) stock is climbing 4% to $162.56 as a wave of federal AI deal flow lifts enterprise software after months of pain.
The bounce comes off a brutal run. ServiceNow stock is down 40% year to date (YTD), and Salesforce shares have shed 40.5% over the same span. Today’s session reads as an oversold rebound with two fresh, name-specific catalysts underneath it.
Both companies sit at the center of a rotation from AI infrastructure names back into application-layer software, where AI is finally translating into recurring revenue rather than raw capex.
ServiceNow’s Q2 Beat and Raise Lights the Fuse ServiceNow reported Q2 FY2026 results Wednesday after the close. The company’s subscription revenue climbed 24.5% to $3.88 billion year over year (YoY), and current remaining performance obligations (cRPO) rose 21% to $13.2 billion. AI annual contract value crossed $1 billion ahead of schedule, with agentic-AI production customers up ninefold in nine months.
CEO Bill McDermott stated in the release, “ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company.” ServiceNow’s management raised its FY26 subscription revenue guide to at least $15.755 billion, and security products landed in 16 of the 20 largest deals thanks to Armis, Veza, and the AI Control Tower stack.
Analysts’ reactions have been aggressive overall. Research reports from Bernstein (Outperform, $248), Evercore ISI ($160), JPMorgan (Overweight, $150), Cantor ($141), and Jefferies ($140) all lifted their ServiceNow stock price targets. Moreover, a fresh Bank of America (NYSE:BAC) research note flagged an “overlooked AI advantage” at a $130 Buy rating.
The bear case has weight, too. UBS cut ServiceNow stock to $110 and Neutral, noting that “demand remains mixed.” Notably, ServiceNow’s Q2 also benefited from federal on-premise revenue pulled forward from Q3, and the Q3 subscription guide of $3.975 to $3.98 billion sits below the $4 billion Street view. Additionally, ServiceNow’s gross margin slipped to 77.9% from 81%.
Salesforce Lands $1.6 Billion Veterans Affairs Deal Salesforce won a $1.6 billion, three-year Department of Veterans Affairs Agentic Enterprise License Agreement, deploying Missionforce, Agentforce Public Sector, and Agentforce Health across the agency. The stated goal is cutting veteran appointment scheduling from 28 days to minutes.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Salesforce didn't make the cut. Grab the names FREE today.
The award builds on Q1 FY2027 momentum for Salesforce. Agentforce ARR reached $1.2 billion, up 205% YoY, combined Agentforce and Data 360 ARR hit $3.4 billion, and Public Sector Industry Cloud ARR surpassed $2 billion, up 23% YoY. Salesforce CEO Marc Benioff emphasized, “Agentic AI is the biggest growth opportunity for our customers, and for Salesforce.”
The bears may counter that Salesforce stock still trades at a trailing 12-month P/E ratio of 18.85x with decelerating headline growth, and that the Informatica integration adds execution risk. Salesforce’s $25 billion accelerated share repurchase program has cushioned EPS, but organic acceleration in H2 FY27 is now the show-me story.
Software Sector Rides the Government Spending Wave The rally lifts the broader group. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) holds both ServiceNow and Salesforce among its top positions, giving the fund concentrated exposure to today’s tape. Concentration cuts both ways, amplifying gains on days like this and losses on drawdowns.
Oracle (NYSE:ORCL) recently secured an up-to-$6.99 billion Pentagon software deal, reinforcing the government-AI-spend theme running through the sector. Federal budget priorities are flowing directly into enterprise software order books, and today’s action suggests that investors are willing to pay for exposure again.
What to Watch Now Investors can watch for whether today’s midday gains hold into the Friday close and whether follow-through research notes extend the target-hike wave into next week. Volume and breadth across software names will signal whether this is a durable rotation or a one-day squeeze.
Salesforce’s Q2 FY2027 earnings report is expected in late August, and ServiceNow’s Q3 setup carries a pull-forward overhang that management will need to address. For beaten-down holders, today offers relief, but position sizing should reflect that both names are still deep in the red for the year.
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