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Super Micro Computer (SMCI) logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 21 (Reuters) - Super Micro Computer (SMCI.O), opens new tab said on Tuesday it had secured ​more than $60 billion in new orders in ‌the fourth quarter, and now expects gross margin to exceed its previous forecast, sending its shares surging 17.5% in extended ​trading.

Artificial-intelligence infrastructure firms have seen demand accelerate ​as tech companies and cloud providers ramp up ⁠investments in data centers to support large language ​models and other AI applications.

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The AI server maker expects ​gross margins in the range of 15% to 17% for the quarter ended June 30, well above its earlier forecast of ​8.2% to 8.4%, "primarily due to a favorable customer ​and product mix."

Super Micro's backlog grew to "record levels" at the ‌end ⁠of fiscal year 2026, it said in a preliminarily statement of results.

It expects quarterly revenue near the low end of its $11 billion to $12.5 billion forecast range. ​Analysts expect revenue ​of $11.67 billion, ⁠according to data complied by LSEG.

The company is set to post quarterly results ​on August 11.

Super Micro had said in ​June ⁠it would raise $7 billion through a series of equity and equity-linked financing transactions and use the proceeds to fulfill ⁠orders ​worth about $39 billion for its ​advanced AI servers from more than 20 customers.

Reporting by Juby Babu in ​Mexico City; Editing by Shailesh Kuber and Shilpi Majumdar

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

Webster Financial (WBS - Free Report) came out with quarterly earnings of $1.6 per share, missing the Zacks Consensus Estimate of $1.61 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -0.62%. A quarter ago, it was expected that this holding company for Webster Bank would post earnings of $1.53 per share when it actually produced earnings of $1.57, delivering a surprise of +2.61%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Webster Financial, which belongs to the Zacks Banks - Northeast industry, posted revenues of $739.99 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.25%. This compares to year-ago revenues of $715.84 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Webster Financial shares have added about 19.7% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Webster Financial?While Webster Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Webster Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.69 on $766.56 million in revenues for the coming quarter and $6.57 on $3.03 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Northeast Community Bancorp (NECB - Free Report) , is yet to report results for the quarter ended June 2026.

This bank holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of -6.1%. The consensus EPS estimate for the quarter has been revised 2.4% lower over the last 30 days to the current level.

Northeast Community Bancorp's revenues are expected to be $25.76 million, down 0.7% from the year-ago quarter.

1 in the industry in year-to-date on-time performance

Expanded international service to include transatlantic flights from Seattle to Rome, London, Reykjavík

Achieved single passenger service system for Alaska and Hawaiian and recognized employees with 75k Atmos Points for major integration milestone

Q3 RASM expected to have double digit growth year-over-year

, /PRNewswire/ -- Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2026.

"Our second quarter results were defined by a fuel spike outside our control - but underneath it, this company is executing better than ever," said CEO Ben Minicucci. "We led the industry in on-time performance for the first half of the year, completed the last major technical milestone of our Hawaiian integration, launched service to Europe, and returned to profitability in June. Absent the fuel headwind, we would have delivered a solidly profitable quarter. I have never been more confident in our people, our plan, and the long-term earnings power of Alaska Air Group."

Quarter in Review:

Air Group reported second quarter Generally Accepted Accounting Principles (GAAP) pretax margin of (5.3)% and GAAP net loss of $76 million, or $0.68 per share. Air Group's second quarter adjusted pretax margin was (4.3)% and adjusted net loss was $102 million, or $0.92 per share.

Q2 2026 Results

Prior Expectation

Actual Results

Capacity (ASMs) % change versus 2025

Up ~1%

Up 1.0%

RASM % change versus 2025

Up high single digits

Up 8.6%

CASMex % change versus 2025

Up high single digits

Up 6.5%

Economic fuel cost per gallon

$4.50

$4.43

Adjusted loss per share

~($1.00)

($0.92)

Second quarter total revenue grew 10% year-over-year to $4.1 billion on capacity growth of 1%, with unit revenue up 8.6%. Yields strengthened through the quarter, with June producing double digit unit revenue growth and double digit pretax profit margins.  

Our revenue performance was impacted by historic rainstorms in Hawai'i in March which had a meaningful impact on April spring break travel and reduced system unit revenue by approximately 3 points in the quarter, modestly above the 2 points originally expected. Outside of Hawai'i, demand remained resilient across the network and our diversified revenue streams continue to outpace system growth: premium revenue increased 15%, cargo revenue increased 21%, and managed corporate revenue accelerated 30% year-over-year respectively. Loyalty performance was also robust, with loyalty cash remuneration up 19%.

Non-fuel unit costs increased 6.5% year-over-year on 1% capacity growth, better than prior guidance. The year-over-year increase reflects 2.5 points of transitory factors, including a one-time employee recognition award tied to achieving a single passenger service system, a year-over-year headwind from prior-year aircraft sale gains, and crew training costs for our international widebody ramp. Outside of these transitory items, core cost management was strong, gaining momentum moving into the second half of the year.  

Second quarter economic fuel cost was $4.43 per gallon, an increase of 85% year-over-year, resulting in $600 million of incremental fuel cost for the period. In response to the elevated and unpredictable fuel price environment, we proactively raised $1 billion in financing during the quarter, deliberately bolstering liquidity to the top end of our target range of 15% to 25% of trailing-12-month revenue. As the fuel environment stabilizes and our earnings profile improves, we expect to put excess liquidity towards paying down debt and bring liquidity back to the midpoint of our target range.

Third Quarter Forecast Information:

With a strong demand backdrop and an improving unit cost trajectory, we expect a widening spread between unit revenue and unit costs in Q3. Coupled with continued execution on our strategic initiatives, we expect a meaningful inflection in financial performance beginning in Q3.

Third quarter capacity is expected to be up approximately 2% to 3% year-over-year, with nearly all growth coming from long-haul international flying out of Seattle, while capacity within North America will be essentially flat year-over-year.

Unit revenue is expected to improve sequentially from the second to third quarter to low double-digit growth year-over-year, supported by strong yields and demand. While Hawai'i remains a 2-3 point unit revenue headwind in the third quarter, loads are recovering and new bookings are coming in at system level yields, showing demand returning to historical levels in September.

Third quarter non-fuel unit costs are expected to increase in the low to mid single digits year-over-year, a meaningful step-down from the first half of the year, as transitory cost items are behind us and productivity improvements compound. While fuel prices remain volatile, economic fuel cost is expected to come down from second quarter levels as refining margins have recently moderated. Our guidance assumes a fuel price of $3.75 per gallon in the third quarter, reflecting July fuel costs of $3.60 per gallon, and average spot prices of $3.85 for August and September.   

Q3 2026 Expectation

Capacity (ASMs) % change versus 2025

Up 2% to 3%

RASM % change versus 2025

Up low double digits

CASMex % change versus 2025

Up low to mid single digits

Economic fuel cost per gallon

$3.75

Adjusted earnings (loss) per share(a)

$0.00 to $1.00

(a) Q3 earnings per share guidance assumes non-operating expense of approximately $60 million, a tax rate of approximately 35%, and shares outstanding of approximately 113.5 million.

Operational Updates:

Led the industry in year-to-date on-time performance. Transitioned to a single passenger service system (PSS), marking a key integration milestone that consolidates reservation and customer service platforms across Alaska and Hawaiian, and delivers a more streamlined guest experience. Launched new transatlantic service from Seattle with flights to Rome, London, and Reykjavik, further expanding our international network and reinforcing our position as the fourth-largest global airline in the U.S. Took delivery of six 737-8 aircraft, two E175 aircraft, and added one E175 under CPA with SkyWest. Announced agreement to add four 737-800 freighter aircraft to Alaska's cargo fleet, effectively doubling the cargo fleet's capacity. The aircraft are expected to enter service in the first half of 2027. Completed the 737 cabin retrofits, adding expanded first and premium class seating and refreshed cabin interiors. Announced expansions in our domestic route network, including the addition of new routes from Santa Rosa, the return of service between Seattle and Long Beach, new service from Honolulu to Burbank, Spokane, and Boise, and increased service between Honolulu and Las Vegas. Commercial Updates:

Hawaiian Airlines joined the oneworld alliance, connecting Hawai'i to over 900 global destinations across more than 170 territories. Opened the newest Alaska Lounge at Portland International Airport, which is twice the size of the previous Portland lounge and underscores our continued investment in premium travel. Announced plans for a new world-class Alaska Lounge in Seattle. The new lounge is set to open in 2027 and will span across two floors, featuring showers, premium bars, à la carte dining, and chef-curated seasonal menus. Liquidity Updates:

Generated $606 million of operating cash flow during the first six months of 2026. Held $3.8 billion in available liquidity, including unrestricted cash, marketable securities, and undrawn credit facilities. Total liquidity includes $1 billion in financing completed in the second quarter, comprising $500 million of 6.5% senior unsecured notes and $500 million in term loans secured by assets associated with the Atmos™ Rewards program. Had approximately $20 billion of unencumbered assets at June 30, 2026, including 131 aircraft and the unencumbered portion of our loyalty program assets. Other Highlights:

Elected Shane Tackett as President and Chief Financial Officer of Alaska Airlines. Appointed Mike Sievert, Vice Chairman and former CEO of T-Mobile, to Air Group's board of directors. Celebrated our employees' efforts in achieving a single PSS and dedication throughout the Alaska-Hawaiian integration by awarding 75,000 Atmos Rewards points to all Alaska, Hawaiian, and Horizon employees. Opened new premium check-in experience in Seattle for business class Suites guests and Atmos Titanium members. CEO Ben Minicucci named Executive of the Year - North America at FlightGlobal's 2026 Airline Strategy Awards. Hawaiian Airlines named "Most Comfortable Airline" on WalletHub's 2026 Best Airlines list.   Alaska Airlines and Hawaiian Airlines were recognized with APEX Best Awards for Best Cabin Service and Best Wi‑Fi, respectively. Alaska Airlines recognized by the Port of Seattle's Sustainable Century Awards for Environmental Performance and Innovation and Greatest Use of Ground Power and Pre‑Conditioned Air Systems. A conference call regarding the second quarter results will be streamed online at 11:30 a.m. EDT/ 8:30 a.m. PDT on July 22, 2026. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

References in this update to "Air Group," "Company," "we," "us," and "our" refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.

This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-looking statements, assumptions or beliefs. For a discussion of risks and uncertainties that may cause our forward-looking statements to differ materially, see Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Some of these risks include competition, labor costs, relations and availability, general economic conditions, increases in operating costs including fuel, uncertainties regarding the ability to successfully integrate operations following the acquisition of Hawaiian Holdings, Inc. and the ability to realize anticipated cost savings, synergies, or growth from the acquisition, inability to meet cost reduction and other strategic goals, seasonal fluctuations in demand and financial results, supply chain risks, events that negatively impact aviation safety and security, cybersecurity risks, and changes in laws and regulations that impact our business. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed in our most recent Form 10-K and in our subsequent SEC filings. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements made today to conform them to actual results. Over time, our actual results, performance or achievements may differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, assumptions or beliefs and such differences might be significant and materially adverse.

Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. With oneworld and our additional global partners, guests can earn and redeem points for travel to over 1,000 worldwide destinations with Atmos Rewards. Learn more about what's happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Alaska Air Group, Inc.

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share amounts)

2026

2025

Change

2026

2025

Change

Operating Revenue

Passenger revenue

$    3,644

$     3,355

9 %

$    6,564

$     6,163

7 %

Loyalty program other revenue

258

210

23 %

485

417

16 %

Cargo and other revenue

163

139

17 %

316

261

21 %

Total Operating Revenue

4,065

3,704

10 %

7,365

6,841

8 %

Operating Expenses

Wages and benefits

1,239

1,165

6 %

2,481

2,292

8 %

Variable incentive pay

65

61

7 %

95

123

(23) %

Aircraft fuel

1,305

700

86 %

2,101

1,381

52 %

Aircraft maintenance

256

240

7 %

472

460

3 %

Aircraft rent

64

64

— %

125

126

(1) %

Landing fees and other rentals

305

278

10 %

596

520

15 %

Contracted services

158

146

8 %

309

291

6 %

Selling expenses

115

105

10 %

214

205

4 %

Depreciation and amortization

207

199

4 %

411

393

5 %

Food and beverage service

107

97

10 %

202

182

11 %

Third-party regional carrier expense

68

69

(1) %

124

133

(7) %

Other

302

247

22 %

605

508

19 %

Special items - operating

42

56

(25) %

77

147

(48) %

Total Operating Expenses

4,233

3,427

24 %

7,812

6,761

16 %

Operating Income (Loss)

(168)

277

(161) %

(447)

80

NM

Non-operating Income (Expense)

Interest income

21

22

(5) %

40

48

(17) %

Interest expense

(86)

(66)

30 %

(162)

(132)

23 %

Interest capitalized

13

9

44 %

23

21

10 %

Other - net

6

(4)

NM

15

(12)

NM

Total Non-operating Expense

(46)

(39)

18 %

(84)

(75)

12 %

Income (Loss) Before Income Tax

(214)

238

(531)

5

Income tax expense (benefit)

(138)

66

(262)

(1)

Net Income (Loss)

$       (76)

$       172

$     (269)

$          6

Basic Earnings (Loss) Per Share

$     (0.68)

$      1.45

$     (2.39)

$      0.05

Diluted Earnings (Loss) Per Share

$     (0.68)

$      1.42

$     (2.39)

$      0.05

Weighted Average Shares Outstanding used for computation:

Basic

111.127

118.847

112.702

120.979

Diluted

111.127

120.930

112.702

123.183

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

Alaska Air Group, Inc.

(in millions, except share amounts)

June 30,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$     1,064

$       627

Restricted cash

33

28

Marketable securities

1,598

1,496

Receivables - net

681

565

Inventories and supplies - net

253

203

Prepaid expenses

261

278

Other current assets

46

69

Total Current Assets

3,936

3,266

Property and equipment - net of accumulated depreciation and amortization of $5,205 and $4,945

12,009

11,857

Operating lease assets

1,345

1,268

Goodwill

2,723

2,723

Intangible assets - net of accumulated amortization of $102 and $74

787

815

Other noncurrent assets

446

432

Total Noncurrent Assets

17,310

17,095

Total Assets

$    21,246

$    20,361

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

$       403

$       324

Accrued wages, vacation and payroll taxes

727

881

Air traffic liability

2,398

1,689

Other accrued liabilities

1,217

1,055

Deferred revenue

1,778

1,722

Current portion of long-term debt and finance leases

452

721

Current portion of operating lease liabilities

217

197

Total Current Liabilities

7,192

6,589

Long-term debt and finance leases, net of current portion

5,783

4,834

Operating lease liabilities, net of current portion

1,164

1,141

Deferred income taxes

739

1,004

Deferred revenue

1,752

1,711

Obligation for pension and post-retirement medical benefits

349

369

Other liabilities

597

595

Total Noncurrent Liabilities

10,384

9,654

Shareholders' Equity

Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding

—

—

Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2026 - 147,087,872 shares; 2025 - 145,115,659 shares, Outstanding: 2026 - 111,566,970 shares; 2025 - 115,530,889 shares

1

1

Capital in excess of par value

1,034

961

Treasury stock (common), at cost: 2026 - 35,520,902 shares; 2025 - 29,584,770 shares

(1,951)

(1,701)

Accumulated other comprehensive loss

(175)

(173)

Retained earnings

4,761

5,030

Total Shareholders' Equity

3,670

4,118

Total Liabilities and Shareholders' Equity

$    21,246

$    20,361

SUMMARY CASH FLOW (unaudited)

Alaska Air Group, Inc.

(in millions)

Six Months Ended
June 30, 2026

Three Months Ended
March 31, 2026(a)

Three Months Ended
June 30, 2026(b)

Cash Flows from Operating Activities:

Net Loss

$               (269)

$               (193)

$                (76)

Adjustments to reconcile net loss to net cash provided by operating activities

453

229

224

Changes in working capital

422

385

37

Net cash provided by operating activities

606

421

185

Cash Flows from Investing Activities:

Property and equipment additions

(523)

(338)

(185)

Other investing activities

(112)

169

(281)

Net cash used in investing activities

(635)

(169)

(466)

Cash Flows from Financing Activities:

472

(428)

900

Net increase (decrease) in cash and cash equivalents

443

(176)

619

Cash, cash equivalents, and restricted cash at beginning of period

684

684

508

Cash, cash equivalents, and restricted cash at end of the period

$              1,127

$                508

$              1,127

Reconciliation of cash, cash equivalents, and restricted cash:

Cash and cash equivalents

$              1,064

$                451

Restricted cash

33

27

Restricted cash included in Other noncurrent assets

30

30

Total cash, cash equivalents, and restricted cash at end of the period

$              1,127

$                508

(a) As reported in Form 10-Q for the first quarter of 2026.

(b) Cash flows for the three months ended June 30, 2026 can be calculated by subtracting cash flows from the three months ended March 31, 2026 from the six months ended June 30, 2026.

OPERATING STATISTICS (unaudited)

A manual recalculation of certain figures using rounded amounts may not agree directly to the actual figures presented in the table below.

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

Change

2026

2025

Change

Consolidated Operating Statistics:(a)

Revenue passengers (000)

15,056

15,234

(1.2) %

28,388

28,393

— %

RPMs (000,000) "traffic"

20,011

20,179

(0.8) %

37,311

37,436

(0.3) %

ASMs (000,000) "capacity"

24,306

24,058

1.0 %

45,876

45,277

1.3 %

Load factor

82.3 %

83.9 %

(1.6) pts

81.3 %

82.7 %

(1.4) pts

Yield

18.21¢

16.62¢

9.6 %

17.59¢

16.46¢

6.9 %

PRASM

14.99¢

13.94¢

7.5 %

14.31¢

13.61¢

5.1 %

RASM

16.72¢

15.39¢

8.6 %

16.06¢

15.11¢

6.3 %

CASMex(b)

11.40¢

10.70¢

6.5 %

11.85¢

11.14¢

6.4 %

Fuel cost per gallon(c)

$4.43

$2.39

85.4 %

$3.74

$2.49

50.2 %

Fuel gallons (000,000)(c)

295

293

0.7 %

562

556

1.1 %

ASMs per gallon

82.4

82.0

0.5 %

81.6

81.5

0.1 %

Departures (000)

139.0

139.6

(0.4) %

264.5

263.5

0.4 %

Average full-time equivalent employees (FTEs)

31,726

31,299

1.4 %

31,596

30,536

3.5 %

Operating fleet(d)

422

409

13 a/c

422

409

13 a/c

(a) 

Except for FTEs, data includes activity under a capacity purchase agreement with a third-party regional carrier.

(b) 

See a reconciliation of this non-GAAP measure and Note A for a discussion of the importance of this measure to investors in the accompanying pages.

(c) 

Excludes operations under the Air Transportation Services Agreement (ATSA) with Amazon.

(d) 

Includes owned and leased aircraft as well as aircraft operated under a capacity purchase agreement with a third-party regional carrier.

GAAP TO NON-GAAP RECONCILIATIONS (unaudited)
Alaska Air Group, Inc.

We are providing reconciliations of reported non-GAAP financial measures to their most directly comparable financial measures reported on a GAAP basis. Amounts in the tables below are rounded to the nearest million. As a result, a manual recalculation of certain figures using these rounded amounts may not agree directly to the amounts presented. These reconciliations include adjustments intended to improve comparability and provide a clearer view of the Company's core operating performance.

Losses (gains) on foreign debt and other primarily reflect unrealized and realized gains or losses resulting from changes in foreign currency exchange rates on certain debt. In 2025, these expenses also included mark-to-market fuel hedge adjustments.

Special items - operating primarily relate to costs associated with the integration of Hawaiian Airlines, including employee-related costs, technology costs, and other merger-related expenses. In 2025, these expenses also included costs related to changes in Alaska flight attendants' sick leave benefits pursuant to a collective bargaining agreement ratified in the first quarter of 2025.

Pretax Income (Loss), Net Income (Loss), and Earnings (Loss) per Share, adjusted

Three Months Ended June 30,

2026

2025

(in millions, except per share amounts)

Loss
Before
Income
Tax

Income
Tax

Net
Loss

Per
Share

Income 
Before
Income
Tax

Income
Tax

Net
Income

Per
Share

GAAP

$         (214)

$  (138)

$    (76)

$  (0.68)

$ 238

$     66

$    172

$   1.42

Adjusted for:

Losses (gains) on foreign debt and other

(4)

1

Special items - operating

42

56

Total adjustments

$   38

$     64

$    (26)

$  (0.24)

$   57

$     14

$     43

$   0.36

Adjusted

$         (176)

$    (74)

$  (102)

$  (0.92)

$ 295

$     80

$    215

$   1.78

GAAP pretax margin

(5.3) %

6.4 %

Adjusted pretax margin

(4.3) %

8.0 %

Six Months Ended June 30,

2026

2025

(in millions, except per share amounts)

Loss
Before
Income
Tax

Income
Tax

Net
Loss

Per
Share

Income
Before
Income
Tax

Income
Tax

Net
Income

Per
Share

GAAP

$         (531)

$  (262)

$  (269)

$  (2.39)

$    5

$     (1)

$      6

$   0.05

Adjusted for:

Losses (gains) on foreign debt and other

(7)

3

Special items - operating

77

147

Total adjustments

$   70

$     95

$    (25)

$  (0.22)

$ 150

$     36

$    114

$   0.92

Adjusted

$         (461)

$  (167)

$  (294)

$  (2.61)

$ 155

$     35

$    120

$   0.97

GAAP pretax margin

(7.2) %

0.1 %

Adjusted pretax margin

(6.3) %

2.3 %

CASMex Reconciliation

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except unit metrics)

2026

2025

2026

2025

Total operating expenses

$        4,233

$        3,427

$        7,812

$        6,761

Less the following components:

Aircraft fuel

1,305

700

2,101

1,381

Freighter costs

52

48

104

89

Performance-based pay

64

49

92

101

Special items - operating

42

56

77

147

Adjusted operating expenses

$        2,770

$        2,574

$        5,438

$        5,043

ASMs

24,306

24,058

45,876

45,277

CASMex

          11.40¢

          10.70¢

          11.85¢

          11.14¢

Adjusted Capital Expenditures Reconciliation

Six Months Ended June 30,

(in millions)

2026

2025

Aircraft, aircraft purchase deposits, and other flight equipment

$            415

$            613

Other property and equipment

108

128

Capital expenditures

523

741

Adjusted for:

Property and equipment acquired through the issuance of debt

48

69

Proceeds from sales of aircraft and other equipment

(7)

(62)

Adjusted capital expenditures

$            564

$            748

Debt-to-capitalization, including leases

(in millions)

June 30, 2026

December 31, 2025

Long-term debt and finance leases, net of current portion

$                 5,783

$                 4,834

Operating lease liabilities, net of current portion

1,164

1,141

Adjusted debt, net of current portion

6,947

5,975

Shareholders' equity

3,670

4,118

Total Invested Capital

$               10,617

$                10,093

Debt-to-capitalization ratio, including leases

65 %

59 %

Adjusted net debt to earnings before interest, taxes, depreciation, amortization, fixed portion of operating lease expense, and special items

(in millions)

June 30, 2026

December 31, 2025

Long-term debt and finance leases

$                    6,235

$                    5,555

Operating lease liabilities

1,381

1,338

Adjusted debt

7,616

6,893

Less: Total unrestricted cash and marketable securities

2,662

2,123

Adjusted net debt

$                    4,954

$                    4,770

(in millions)

Twelve Months Ended
June 30, 2026

Twelve Months Ended
December 31, 2025

Operating Income (Loss)(a)

$                     (224)

$                      303

Adjusted for:

Special items - operating

180

250

Gains on foreign debt and other

(13)

(3)

Depreciation and amortization

813

795

Fixed portion of operating lease expense

279

279

EBITDAR

$                    1,035

$                    1,624

Adjusted net debt to EBITDAR

4.8x

2.9x

(a) 

Operating income (loss) can be reconciled using the trailing twelve month operating income as filed quarterly with the SEC.

Note A: Pursuant to Regulation G, we provide reconciliations of reported non-GAAP financial measures to the most directly comparable GAAP financial measures. We believe these non-GAAP measures provide meaningful supplemental information to investors for the following reasons:

Pretax income (loss), net income (loss), and earnings (loss) per share are presented on an adjusted basis. Adjustments are made for special charges that are unusual or nonrecurring in nature, as well as for gains and losses on foreign debt, as these adjustments enhance comparability of our core operations to prior periods and to the rest of the airline industry. CASMex is a key measure used by management and the Air Group Board of Directors to evaluate cost performance. It is also commonly used by industry analysts to compare airlines. Because U.S. carriers are generally similarly affected by changes in jet fuel prices over the long run, aircraft fuel costs are excluded to focus on more controllable, company-specific cost drivers. Costs related to freighter aircraft operations, including those incurred under the ATSA with Amazon, are excluded to enhance comparability with carriers that do not operate freighter aircraft. Performance‑Based Pay (PBP) expense is excluded as it is dependent on the Company's achievement of annually established financial and operational goals. Certain special charges are excluded as they are unusual or nonrecurring in nature. Adjusted capital expenditures includes certain amounts that are not classified as investing cash outflows within our consolidated statements of cash flows, but are viewed by management and other stakeholders as significant long-term investments in the business. Management believes these adjustments provide a more complete view of capital expenditures during the year. Liquidity and leverage measures, including debt-to-capitalization and adjusted net debt to EBITDAR, are presented to provide insight into the Company's financial position and flexibility. In 2026, we made adjustments to the calculation of these metrics to enhance comparability with our peers. The debt-to-capitalization ratio now excludes the current portion of operating and finance lease liabilities, with prior periods recast for consistency. Additionally, EBITDAR was adjusted to reflect the fixed portion of operating leases rather than total aircraft rent to better reflect performance, with prior periods recast accordingly. GLOSSARY OF TERMS

Adjusted debt - long-term debt, plus operating and finance lease liabilities

Adjusted net debt - long-term debt, plus operating and finance lease liabilities, less unrestricted cash and marketable securities

Adjusted net debt to EBITDAR - represents adjusted net debt divided by EBITDAR (trailing twelve months earnings before interest, taxes, depreciation, amortization, fixed portion of operating leases, and special items)

ASMs - available seat miles, or "capacity"; represents total seats available across the fleet multiplied by the number of miles flown

CASMex - operating costs excluding fuel, freighter costs, Performance-Based Pay (PBP), and special items per ASM, or "unit cost"

Debt-to-capitalization ratio - represents adjusted debt, net of current portion, divided by total equity plus adjusted debt, net of current portion

Diluted Earnings per Share - represents earnings per share (EPS) using fully diluted shares outstanding

Diluted Shares - represents the total number of shares that would be outstanding if all possible sources of conversion, such as stock options, were exercised

Freighter Costs - operating expenses directly attributable to the operation of B737 freighter aircraft and A330-300 freighter aircraft exclusively performing cargo missions

Load Factor - RPMs as a percentage of ASMs; represents the number of available seats that were filled with revenue passengers

PRASM - passenger revenue per ASM, or "passenger unit revenue"

RASM - operating revenue per ASMs, or "unit revenue"; operating revenue includes all passenger revenue, freight & mail, loyalty program revenue, and other ancillary revenue; represents the average total revenue for flying one seat one mile

RPMs - revenue passenger miles, or "traffic"; represents the number of seats that were filled with revenue passengers; one passenger traveling one mile is one RPM

Yield - passenger revenue per RPM; represents the average passenger revenue for flying one passenger one mile

SOURCE Alaska Air Group

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the second quarter of 2026.

"Pega Infinity™ 26 uniquely deploys the power of AI with predictable outcomes and predicable costs by applying agents at design time to optimize run-time token use,” said Alan Trefler, founder and CEO, Pega. "Letting language models do everything is risky and expensive, and using AI to write mountains of code creates significant barriers to the ongoing change that enterprise clients require. Pega structures business applications in a way that makes sense to business and IT to Build for Change®.”

"Pega generated record first-half cash flow and returned substantial capital to shareholders,” said Ken Stillwell, COO and CFO, Pega. “As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega’s strengths, and we remain confident in our strategy to capitalize on the opportunity ahead.”

Financial and performance metrics (1)

Unprecedented changes in the AI market caused clients to delay their purchasing decisions. As a result, our ACV growth rate significantly slowed during the six months ended June 30, 2026, as compared to the same period last year. These factors may continue to adversely affect the ACV growth rate for the rest of the year.

Reconciliation of ACV and Constant Currency ACV

(in millions, except percentages)

June 30, 2025

June 30, 2026

1-Year Change

ACV

$

1,514

$

1,620

7

%

Impact of changes in foreign exchange rates

—

10

Constant currency ACV

$

1,514

$

1,630

8

%

  Note: Constant currency ACV is calculated by applying the June 30, 2025 foreign exchange rates to current period shown.

Cash Flow Growth

As a result of the factors discussed under ACV above, our cash flow generation may continue to be adversely affected for the rest of the year.

  (Dollars in thousands,

except per share amounts)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

Change

2026

2025

Change

Total revenue

$

420,716

$

384,512

9

%

$

850,689

$

860,145

(1

)%

Net income - GAAP

$

13,334

$

30,077

(56

)%

$

46,098

$

115,499

(60

)%

Net income - non-GAAP

$

59,533

$

50,151

19

%

$

142,601

$

190,693

(25

)%

Diluted earnings per share - GAAP

$

0.08

$

0.17

(53

)%

$

0.26

$

0.63

(59

)%

Diluted earnings per share - non-GAAP

$

0.35

$

0.28

25

%

$

0.81

$

1.04

(22

)%

  (Dollars in thousands)

Three Months Ended

June 30,

Change

Six Months Ended

June 30,

Change

2026

2025

2026

2025

Pega Cloud

$

213,934

51

%

$

166,743

43

%

$

47,191

28

%

$

418,965

49

%

$

317,866

37

%

$

101,099

32

%

Maintenance

74,528

18

%

79,271

21

%

(4,743

)

(6

)%

149,845

18

%

155,639

18

%

(5,794

)

(4

)%

Subscription services

288,462

69

%

246,014

64

%

42,448

17

%

568,810

67

%

473,505

55

%

95,305

20

%

Subscription license

82,028

19

%

80,674

21

%

1,354

2

%

176,880

21

%

268,395

31

%

(91,515

)

(34

)%

Subscription

370,490

88

%

326,688

85

%

43,802

13

%

745,690

88

%

741,900

86

%

3,790

1

%

Consulting

50,226

12

%

57,824

15

%

(7,598

)

(13

)%

104,999

12

%

118,245

14

%

(13,246

)

(11

)%

Total revenue

$

420,716

100

%

$

384,512

100

%

$

36,204

9

%

$

850,689

100

%

$

860,145

100

%

$

(9,456

)

(1

)%

Quarterly conference call

A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, July 22, 2026.

Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (833) 461-5787 (domestic) or 1 (626) 884-3620 (international) and using Conference ID 421269211, or via https://events.q4inc.com/attendee/421269211 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.

Discussion of non-GAAP financial measures

Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

Forward-looking statements

Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements about the growth and development of our business and market.

Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, positions, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.

Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:

our future financial performance and business plans; the adequacy of our liquidity and capital resources; the successful execution of investments in artificial intelligence; the timing of revenue recognition; variation in demand for our products and services; reliance on key personnel; potential legal and financial liabilities, as well as damage to our reputation, due to cyber-attacks; security breaches and security flaws; our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims, and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us; our ongoing litigation with Appian Corp. and associated legal proceedings; our client retention rate; and management of our growth. These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025, and other filings we make with the SEC.

Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.

Any forward-looking statements in this press release represent our views as of July 21, 2026.

About Pegasystems

Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI with proven architecture to keep mission-critical operations governed, scalable, and continuously adaptable. Since 1983, the world's largest organizations have trusted Pega to turn transformation ambition into durable results. Learn more at www.pega.com.

All trademarks are the property of their respective owners.

(1) Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

  PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

  Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenue

Subscription services

$

288,462

$

246,014

$

568,810

$

473,505

Subscription license

82,028

80,674

176,880

268,395

Consulting

50,226

57,824

104,999

118,245

Total revenue

420,716

384,512

850,689

860,145

Cost of revenue

Subscription services

53,941

41,510

103,390

79,638

Subscription license

267

364

738

752

Consulting

53,821

67,700

110,655

131,634

Total cost of revenue

108,029

109,574

214,783

212,024

Gross profit

312,687

274,938

635,906

648,121

Operating expenses

Selling and marketing

165,408

147,131

321,011

285,200

Research and development

84,168

78,784

166,215

153,070

General and administrative

43,740

31,788

92,313

65,616

Restructuring

2,735

(44

)

2,582

(33

)

Total operating expenses

296,051

257,659

582,121

503,853

Income from operations

16,636

17,279

53,785

144,268

Foreign currency transaction (loss) gain

(1,364

)

(14,008

)

486

(19,333

)

Interest income

2,500

3,248

5,454

8,583

Interest expense

(45

)

(1

)

(89

)

(1,028

)

(Loss) on capped call transactions

—

—

—

(223

)

Other income (loss), net

786

18,729

(1,418

)

19,290

Income before provision for (benefit from) income taxes

18,513

25,247

58,218

151,557

Provision for (benefit from) income taxes

5,179

(4,830

)

12,120

36,058

Net income

$

13,334

$

30,077

$

46,098

$

115,499

Earnings per share

Basic

$

0.08

$

0.18

$

0.28

$

0.67

Diluted

$

0.08

$

0.17

$

0.26

$

0.63

Weighted-average number of common shares outstanding

Basic

165,613

170,776

167,206

171,287

Diluted

171,765

182,160

175,294

185,477

  PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

  June 30, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$

185,110

$

212,447

Marketable securities

176,797

213,352

Total cash, cash equivalents, and marketable securities

361,907

425,799

Accounts receivable, net

143,213

264,713

Unbilled receivables, net

154,029

166,478

Other current assets

102,559

121,305

Total current assets

761,708

978,295

Long-term unbilled receivables, net

77,947

102,544

Goodwill

81,265

81,506

Long-term deferred income taxes

176,903

175,472

Other long-term assets

286,220

294,027

Total assets

$

1,384,043

$

1,631,844

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

52,964

$

12,924

Accrued expenses

92,295

44,847

Accrued compensation and related expenses

87,583

148,797

Deferred revenue

462,532

509,275

Other current liabilities

23,886

21,935

Total current liabilities

719,260

737,778

Long-term operating lease liabilities

56,996

60,825

Other long-term liabilities

47,403

45,860

Total liabilities

823,659

844,463

Total stockholders’ equity

560,384

787,381

Total liabilities and stockholders’ equity

$

1,384,043

$

1,631,844

  PEGASYSTEMS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

  Six Months Ended

June 30,

2026

2025

Net income

$

46,098

$

115,499

Adjustments to reconcile net income to cash provided by operating activities

Non-cash items

125,635

123,170

Change in operating assets and liabilities, net

126,492

51,827

Cash provided by operating activities

298,225

290,496

Cash provided by investing activities

25,832

212,995

Cash (used in) financing activities

(349,030

)

(646,316

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(2,299

)

7,407

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

(27,272

)

(135,418

)

Cash, cash equivalents, and restricted cash, beginning of period

216,360

341,529

Cash, cash equivalents, and restricted cash, end of period

$

189,088

$

206,111

  PEGASYSTEMS INC.

RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES

(in thousands, except percentages and per share amounts)

  Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

Change

2026

2025

Change

Net income - GAAP

$

13,334

$

30,077

(56

)%

$

46,098

$

115,499

(60

)%

Stock-based compensation (1)

36,226

36,730

82,041

78,155

Legal fees

17,950

6,409

37,914

12,953

Amortization of intangible assets

237

675

1,020

1,376

Restructuring

2,735

(44

)

2,582

(33

)

Foreign currency transaction loss (gain)

1,364

14,008

(486

)

19,333

Interest on convertible senior notes

—

—

—

394

Capped call transactions

—

—

—

223

Other

(700

)

(18,729

)

1,533

(19,480

)

Income taxes (2)

(11,613

)

(18,975

)

(28,101

)

(17,727

)

Net income - non-GAAP

$

59,533

$

50,151

19

%

$

142,601

$

190,693

(25

)%

Diluted earnings per share - GAAP

$

0.08

$

0.17

(53

)%

$

0.26

$

0.63

(59

)%

non-GAAP adjustments

0.27

0.11

0.55

0.41

Diluted earnings per share - non-GAAP

$

0.35

$

0.28

25

%

$

0.81

$

1.04

(22

)%

Diluted weighted-average number of common shares outstanding - GAAP

171,765

182,160

(6

)%

175,294

185,477

(5

)%

Capped call transactions

—

—

—

(2,412

)

Diluted weighted-average number of common shares outstanding - non-GAAP

171,765

182,160

(6

)%

175,294

183,065

(4

)%

Our non-GAAP financial measures reflect the following adjustments:

Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation. Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance. Amortization of intangible assets: We have excluded the amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates in amount and frequency and is significantly affected by the timing and size of acquisitions. Investors should note that intangible assets contributed to our revenues recognized during the periods presented and are expected to contribute to future revenues. Amortization of intangible assets is likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods. Restructuring: We have excluded restructuring from our non-GAAP financial measures. Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as these amounts are not representative of our core business operations and ongoing operational performance. Foreign currency transaction loss (gain): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by foreign exchange market rates. Foreign currency transaction gains and losses are likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods. Interest on convertible senior notes: In February 2020, we issued convertible senior notes (the “Notes”), due March 1, 2025, in a private placement. The Notes accrued interest at an annual rate of 0.75%, paid semi-annually in arrears on March 1 and September 1. The outstanding Notes were repaid in their entirety at maturity. We believe that excluding the amortization of issuance costs provides a useful comparison of our operational performance in different periods. Capped call transactions: We have excluded gains and losses related to our capped call transactions held at fair value under U.S. GAAP. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance. Other: We have excluded gains and losses from our venture investments and other one-time, non-operating items. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance. Diluted weighted-average number of common shares outstanding: Capped call transactions: In periods of GAAP net income, the shares calculated by applying the if-converted method related to our Notes are included in the diluted weighted-average shares outstanding if they are dilutive. The capped call transactions were expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the Notes. We believe that including the expected impact of the capped call transactions in our non-GAAP financial measures provides a useful comparison of our operational performance in different periods. (1) Stock-based compensation:

Three Months Ended

June 30,

Six Months Ended

June 30,

(Dollars in thousands)

2026

2025

2026

2025

Cost of revenue

$

6,752

$

7,288

$

14,628

$

15,111

Selling and marketing

14,555

14,378

33,009

30,159

Research and development

7,943

7,490

17,962

15,875

General and administrative

6,976

7,574

16,442

17,010

$

36,226

$

36,730

$

82,041

$

78,155

Income tax benefit

$

(7,091

)

$

(566

)

$

(16,255

)

$

(1,153

)

(2) Effective income tax rates:

Six Months Ended

June 30,

2026

2025

GAAP

21

%

24

%

non-GAAP

22

%

22

%

Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility.

  PEGASYSTEMS INC.

RECONCILIATION OF FREE CASH FLOW (1) AND OTHER METRICS

(in thousands, except percentages)

  Six Months Ended

June 30,

Change

2026

2025

Cash provided by operating activities

$

298,225

290,496

3

%

Investment in property and equipment

(9,967

)

(4,015

)

Free cash flow (1)

$

288,258

$

286,481

1

%

Supplemental information (2)

Legal fees

$

9,188

$

10,020

Restructuring

11,449

1,354

Interest paid on convertible senior notes

—

1,754

Other

(689

)

—

Income taxes, net of refunds

10,842

(702

)

$

30,790

$

12,426

  PEGASYSTEMS INC.

ANNUAL CONTRACT VALUE

(in thousands, except percentages)

  Annual contract value (“ACV”) - ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.

  June 30, 2026

June 30, 2025

Change

Constant Currency Change

Pega Cloud

$

926,290

$

761,051

$

165,239

22

%

22

%

Maintenance

271,328

301,375

(30,047

)

(10

)%

(9

)%

Subscription services

1,197,618

1,062,426

135,192

13

%

13

%

Subscription license

422,316

451,591

(29,275

)

(6

)%

(6

)%

$

1,619,934

$

1,514,017

$

105,917

7

%

8

%

  PEGASYSTEMS INC.

BACKLOG

(in thousands, except percentages)

  Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:

As of June 30, 2026:

  Subscription services

Subscription license

Consulting

Total

Pega Cloud

Maintenance

1 year or less

$

704,447

$

198,492

$

42,537

$

47,220

$

992,696

49

%

1-2 years

393,855

82,004

1,546

3,747

481,152

24

%

2-3 years

222,052

50,070

7,583

899

280,604

14

%

Greater than 3 years

241,679

20,480

958

1,062

264,179

13

%

$

1,562,033

$

351,046

$

52,624

$

52,928

$

2,018,631

100

%

% of Total

77

%

17

%

3

%

3

%

100

%

Change since June 30, 2025

$

240,835

$

(45,683

)

$

(21,826

)

$

9,976

$

183,302

18

%

(12

)%

(29

)%

23

%

10

%

As of June 30, 2025:

Subscription services

Subscription license

Consulting

Total

Pega Cloud

Maintenance

1 year or less

$

603,683

$

220,954

$

62,222

$

39,798

$

926,657

51

%

1-2 years

334,586

79,345

4,262

2,846

421,039

23

%

2-3 years

172,513

49,587

746

252

223,098

12

%

Greater than 3 years

210,416

46,843

7,220

56

264,535

14

%

$

1,321,198

$

396,729

$

74,450

$

42,952

$

1,835,329

100

%

% of Total

72

%

22

%

4

%

2

%

100

%

  PEGASYSTEMS INC.

RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG

(in millions, except percentages)

  June 30, 2025

June 30, 2026

1 Year Growth Rate

Backlog - GAAP

$

1,835

$

2,019

10

%

Impact of changes in foreign exchange rates

—

20

Constant currency backlog

$

1,835

$

2,039

11

%

  Note: Constant currency backlog is calculated by applying the June 30, 2025 foreign exchange rates to current period shown.

More News From Pegasystems Inc.

-

LANCASTER, Pa.--(BUSINESS WIRE)--Armstrong World Industries, Inc. (NYSE:AWI), an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including ceilings, specialty walls and exterior metal solutions, announced today that its Board of Directors has approved an additional $800 million authorization to repurchase shares under the Company's existing share repurchase program, increasing the total authorized amount under the program to $2.5 billion, and extending the program through Dec. 31, 2029.

In addition, the Board of Directors has declared a cash dividend of $0.339 per share of common stock. The dividend will be paid on Aug. 19, 2026, to shareholders on record as of the close of business on Aug. 5, 2026.

"I'm pleased to announce the Board’s approval of this $800 million increase in our share repurchase authorization which, along with our quarterly dividend, reflects the fundamental strength of our business model and its ability to consistently generate strong Adjusted Free Cash Flow," said Chris Calzaretta, SVP and CFO of Armstrong World Industries. "With our consistent approach to capital allocation and a healthy balance sheet, we are well-positioned for continued long-term shareholder value creation."

Pursuant to the share repurchase program, the Company may purchase shares of its common stock at times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. Repurchases under the program may be made through open market, block and privately-negotiated transactions, including Rule 10b5-1 plans. The expanded program, unless otherwise determined by the Board of Directors, does not obligate the Company to purchase any particular amounts of common stock and may be suspended or discontinued at any time without notice. The declaration and payment of future dividends and capital allocations will be at the discretion of the Board of Directors and will be dependent upon, among other things, the company's financial position, results of operations and cash flow.

About Armstrong

Armstrong World Industries, Inc. (AWI) is an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including ceilings, specialty walls and exterior metal solutions. For more than 165 years, Armstrong has delivered products and capabilities that enable architects, designers and contractors to transform building design and construction with elevated aesthetics, acoustics and sustainable attributes. With $1.6 billion in revenue in 2025, AWI has approximately 4,000 employees and a manufacturing network of 24 facilities, plus seven facilities dedicated to its WAVE joint venture.

More News From Armstrong World Industries, Inc.

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MarketBeat Week in Review – 04/06 - 04/10 East West Bancorp NASDAQ: EWBC reported record second-quarter 2026 revenue, net interest income and non-interest income, supported by new highs in loans and deposits, executives said on the company’s earnings call.

Chairman and Chief Executive Officer Dominic Ng said end-of-period deposits grew 8% year over year, with strength across all deposit product categories. He said demand deposits accounted for more than two-thirds of the quarter’s total increase, while non-interest-bearing deposits rose 19% from a year earlier.

Get East West Bancorp alerts:

East West Bancorp: Confronting the Risks With Record Results “A continued focus on providing solutions to our customers helped drive” the growth in non-interest-bearing deposits, Ng said.

End-of-period loans increased 7% year over year, with growth in residential mortgage and commercial-and-industrial lending helping further diversify the loan portfolio, Ng said. He added that credit quality remained strong, with non-performing assets, criticized loans and net charge-off levels “broadly stable.”

Deposits Shift Toward Core Demand Accounts Chief Financial Officer Chris Del Moral-Niles said end-of-period deposits rose by $1.2 billion across more than 700,000 customer accounts during the quarter. Demand deposits increased $875 million, representing most of the growth. Average demand deposit accounts were up 15% year over year.

Del Moral-Niles attributed the increase to small business checking campaigns and positive flows from tariff refunds across hundreds of accounts. He said East West’s demand deposit mix rose to 26% of total deposits as the company emphasized core relationship growth and moved away from certificates of deposit, wholesale deposits and public funds deposits.

That shift helped support the net interest margin and control deposit costs, he said. Period-end deposit costs declined by six basis points in the quarter. Over the past year, interest-bearing deposit costs fell 49 basis points against a backdrop of 75 basis points of cuts in the federal funds target rate.

During the question-and-answer session, Del Moral-Niles estimated that roughly $200 million to $250 million of period-end balances reflected net excess tariff-related inflows. He said most of that amount had already moved out after quarter-end, though additional tariff deposits were still expected under refund programs into August.

Asked about upcoming CD maturities, Del Moral-Niles said $13 billion of CDs would roll off in the third quarter. He said the bank was proactively pricing at 3.60% for six-month CDs and 3.75% for 12-month CDs, while continuing to evaluate pricing as the quarter progresses.

Loan Growth Led by Residential Mortgage and C&I East West reported more than $300 million of net growth in residential mortgage loans during the quarter. Del Moral-Niles said the company maintained a conservative underwriting approach, with an average portfolio loan-to-value ratio of 52% in its residential mortgage book.

C&I loan balances also increased by more than $300 million in the second quarter. Del Moral-Niles cited growth in lending to financial services, equipment finance and lessors, and manufacturers and wholesalers. Non-depository financial institution balances rose by only $24 million, reflecting expected paydowns in private equity loans and consumer credit portfolios.

Overall, C&I loans were up 11% year over year, representing more than $2 billion of net growth over that period. Given 7% loan growth in the first half of 2026 and the pipeline heading into the third quarter, East West raised its full-year end-of-period loan growth guidance to a range of 6% to 8%.

In response to an analyst question, Del Moral-Niles said the bank remains focused on moving toward a portfolio mix of roughly one-third C&I, one-third residential mortgage and one-third commercial real estate over time. He said C&I represented 34% of total loans, while commercial real estate stood at 37%, above the company’s long-term vision but still a portfolio with which management is “very comfortable.”

Net Interest Income Guidance Raised Quarterly net interest income rose to a record $685 million. East West’s net interest margin was 3.43%, down in line with the effect of one fewer day in the quarter but up eight basis points from a year earlier.

Del Moral-Niles said the company now expects full-year net interest income growth of 7% to 9%, up from its prior guidance of 6% to 8%. The updated outlook assumes a flat federal funds rate through the end of the year.

Asked about margin trends in a flat rate environment, Del Moral-Niles said management expects the margin to remain “relatively stable.” He acknowledged some pressure on loan yields from mix and prior-quarter one-time items but said the company expects to drive stronger net interest income through balance sheet growth.

On rate sensitivity, Del Moral-Niles said East West is “modestly asset sensitive.” He said a 25-basis-point rate hike or cut would likely affect net interest income by about $2 million per month, with roughly a 45-day lag.

Fee Income and Expenses Quarterly fee income increased 19% year over year to $96 million. Del Moral-Niles said total fee income declined by $3 million from the first quarter, largely reflecting record wealth management results in the prior period and a slight decline in some derivatives activity.

Loan- and deposit-related fees rose 14% year over year. Del Moral-Niles said East West remains on track to deliver double-digit year-over-year fee income growth in 2026. He also highlighted wealth management as a growth area, noting during the Q&A that wealth management fees were up 71% year over year for the first six months of the year, according to the company’s press release tables.

Total operating non-interest expenses were $268 million in the second quarter. Compensation and benefits costs were flat sequentially, and Del Moral-Niles said those costs are expected to moderate in the second half of the year. He cited deferred compensation expenses and changes related to vacation pay as factors affecting the quarter’s compensation line.

East West reported a second-quarter efficiency ratio of 36.7%, consistent with prior periods, and an operating non-interest expense to average asset ratio of 1.29%. The company narrowed its full-year expense growth guidance to 8% to 9% versus last year.

Credit and Capital Remain Strong Chief Risk Officer Irene Oh said asset quality metrics remained broadly stable. Non-performing assets rose slightly by three basis points quarter over quarter to 29 basis points as of June 30, 2026. Net charge-offs were 19 basis points, or $27 million, compared with nine basis points, or $12 million, in the first quarter.

East West reaffirmed its full-year net charge-off guidance of 15 to 25 basis points. The company recorded a provision for credit losses of $33 million, compared with $36 million in the first quarter. The allowance for credit losses increased $6 million to $842 million, or 1.43% of total loans, reflecting loan growth and portfolio mix shift.

Oh said all regulatory capital ratios remained well above requirements for well-capitalized institutions. East West’s common equity Tier 1 capital ratio was 15.4%, and its tangible common equity ratio was 10.4%. The company had $117 million of repurchase authorization remaining and distributed about $111 million to shareholders through quarterly dividends.

Ng closed the call by thanking employees and said the company remains focused on creating long-term value.

About East West Bancorp (NASDAQ:EWBC)East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.

Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.

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].

Should You Invest $1,000 in East West Bancorp Right Now?Before you consider East West Bancorp, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and East West Bancorp wasn't on the list.

While East West Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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This news release constitutes a “designated news release” for the purposes of the prospectus supplement dated November 19, 2025 to the short form base shelf prospectus of Brookfield Infrastructure Corporation and Brookfield Infrastructure Partners L.P. dated January 29, 2025

BROOKFIELD, News, July 21, 2026 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) (“BIP”) and Brookfield Infrastructure Corporation (NYSE: BIPC; TSX: BIPC) (“BIPC”, and together with BIP, “Brookfield Infrastructure”) today announced that it has approved plans to simplify its corporate structure (the “Simplification”) by converting BIP and BIPC into one publicly traded corporation, Brookfield Infrastructure Partners Inc. (“BIP Inc.”).  

“We are proud to mark the next chapter in Brookfield Infrastructure Partners’ evolution as a public company,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “The simplification is designed to broaden our investor base, support increased index demand and make Brookfield Infrastructure easier to own through a traditional corporate structure. This transaction is expected to drive long-term value for all securityholders.”

Benefits of a Simplified Structure

Brookfield Infrastructure expects the Simplification to be tax-deferred for Canadian and U.S. investors and completed without any meaningful cost to the business, while providing securityholders with the following benefits, among others:

Improved consolidated trading liquidity through a single listed security;Increased demand from current indices and potential additional index inclusion;Stronger alignment with long-term capital allocation trends toward indexable and ETF-eligible corporate securities;Simplified investor analysis, screening, and benchmarking through a single listed reporting entity;Broader access to a larger pool of investors who prefer corporate structures;Enhanced governance framework and voting rights for public securityholders; andFor BIP unitholders, elimination of onerous partnership tax reporting forms and preferential dividend tax rates for many Canadian and U.S. taxable investors. Corporate Simplification Details

Under the terms of the Simplification, upon receipt of approval from BIP unitholders, all outstanding limited partnership units of BIP, other than preferred units, will, together with certain related exchangeable securities, be exchanged on a one-for-one basis for newly issued shares of BIP Inc.

BIPC shareholders will separately be asked to approve the Simplification, pursuant to which their class A exchangeable subordinate voting shares in BIPC (the “BIPC exchangeable shares”) will be exchanged for new shares of BIP Inc. on a one-for-one basis. If BIPC shareholders vote in favor of the Simplification, the exchange can also be completed on a tax-deferred basis. If BIPC shareholders do not approve the Simplification, the BIPC exchangeable shares will remain outstanding and become exchangeable, on a one-for-one basis, for newly issued shares of BIP Inc., rather than being exchangeable for units of BIP as they are today.

Completion of the exchange of BIP limited partnership units for shares of BIP Inc. is not conditional on BIPC shareholder approval.

Special meetings of BIP unitholders and BIPC shareholders will be held on October 14, 2026, and securityholders of record as of the close of business on August 21, 2026 will be entitled to vote at the applicable meeting. The Simplification will be implemented by way of a court-approved plan of arrangement and will be subject to customary regulatory approvals for a transaction of this nature, including approval for the listing of BIP Inc.’s shares on the New York Stock Exchange and Toronto Stock Exchange. Following securityholder approval, Brookfield Infrastructure expects to complete the Simplification in the fourth quarter of 2026.

There will be no change to Brookfield’s ownership of Brookfield Infrastructure as a result of the Simplification. BIP’s preferred units and public debt will remain outstanding and unaffected by the Simplification.

Brookfield Asset Management’s management fee and incentive distribution arrangements will continue in a manner consistent with Brookfield Infrastructure’s existing arrangements.

The Board of Directors of each of BIP and BIPC, based in part on the unanimous recommendations of their respective special committees (consisting entirely of independent directors) and the fairness opinions received from Scotiabank, unanimously determined that the Simplification is in the best interests of BIP and BIPC, respectively, and have unanimously resolved to approve the Simplification and recommend that BIP unitholders and BIPC shareholders vote in favor of the Simplification.

Torys LLP is acting as legal advisor to Brookfield Infrastructure for the Simplification.

Scotiabank is acting as independent financial advisor and Goodmans LLP is acting as independent legal counsel to the special committees of each of BIP and BIPC in connection with the Simplification.

Further information regarding the Simplification, including details on the votes that will be required and the other conditions for closing, will be contained in a joint management information circular of BIP and BIPC.

Copies of the joint management information circular, the arrangement agreement, the plan of arrangement and certain related documents will be filed with the applicable Canadian securities regulators and with the United States Securities and Exchange Commission and will be available on SEDAR+ at https://sedarplus.ca and on EDGAR at https://sec.gov.

About Brookfield Infrastructure

Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. We are focused on assets that have contracted and regulated revenues that generate predictable and stable cash flows. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further information is available at https://bip.brookfield.com.

Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager, headquartered in New York with over $1 trillion of assets under management. For more information, go to https://brookfield.com.

Contact Information

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Any securities to be issued in the transaction will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States, and any securities issued in connection with the transaction are anticipated to be issued in reliance upon the exemption from the registration requirements of the U.S. Securities Act provided for by Section 3(a)(10) thereof and in accordance with applicable state securities laws.

Cautionary Statement Regarding Forward-looking Statements

This news release may contain “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws. The words “will”, “target”, “future”, “growth”, “expect”, “believe”, “may”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements or information in this news release include statements with respect to the Simplification and the special meetings of the unitholders of BIP and the shareholders of BIPC.

Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure, and the completion of the Simplification, are subject to a number of known and unknown risks and uncertainties, which could cause actual results to differ materially from those contemplated or implied by the forward-looking statements or information in this news release. Such risks and factors are described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under “Risk Factors” in the most recent Annual Report on Form 20-F of BIP and in the most recent Annual Report on Form 20-F of BIPC, and other risks and factors that are described therein. Certain risks and uncertainties specific to the proposed Simplification will be further described in the joint management information circular of BIP and BIPC to be delivered to security holders in advance of the special meetings. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

Any statements contained herein with respect to tax consequences are of a general nature only and are not intended to be, nor should they be construed to be, legal or tax advice to any person, and no representation with respect to tax consequences is made. Unitholders and shareholders are urged to consult their tax advisors with respect to their particular circumstances.

Oklo stock is charging ahead with explosive momentum. What’s driving OKLO stock higher? Oklo, X-Energy To Join Power Plant ProgramOklo and X-Energy will join Microsoft and Nvidia in a Trump administration-led effort to accelerate the construction of new power plants for AI data centers, according to a Bloomberg report citing a document reviewed by Bloomberg News.

The $200 million program reportedly aims to address mounting concern that the data center buildout fueling the AI boom has pushed up electricity prices across the country.

The report indicates that an official announcement could come as soon as Wednesday.

Nuclear power has emerged as one of the more compelling answers to AI’s soaring electricity demand, largely because it provides large amounts of around-the-clock baseload power without producing direct carbon emissions. That combination has driven a wave of activity, from tech companies signing long-term deals to restart or contract existing plants to growing investment in small modular reactors.

OKLO, XE Shares Rise After the BellAt the time of publication, Oklo shares were up 6.31% at $46.50 in after-hours, and X-Energy shares were up 7.22% at $16.79, according to Benzinga Pro.

Image: Shutterstock.com

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Apple is raising prices on Apple Music subscriptions as well as certain Apple One plans as the company faces higher licensing costs.

The tech giant last week hiked prices for Apple Music plans across subscription tiers. Individual plans will rise by $1 a month to $11.99, while student plans will increase by the same amount to $6.99 a month.

Prices for the Apple Music family plan are also rising by $3 per month to a new monthly rate of $19.99.

The company also hiked prices for some tiers of Apple One – the company's bundle that allows consumers to subscribe simultaneously to Apple TV, Music, iCloud+, Arcade, Fitness+ and News+ or the first four services.

APPLE RAISES IPAD AND MACBOOK PRICES AS MEMORY CHIP COSTS SURGE

Apple raised prices on Apple Music plans as well as some Apple One packages. (CFOTO/Future Publishing via Getty Images)

Prices for the Apple One family tier are set to rise by $2 to a new total of $27.95 per month. Family plans may be shared with up to five people and have up to 200 gigabytes of iCloud storage, though they don't include News+ or Fitness+ in the package.

The individual Apple One subscription, which includes the same four services but with 50 gigabytes of iCloud storage, is unchanged at $19.95 a month.

Apple One's Premier package, which includes all six of the company's subscription services with up to 2 terabytes of storage and may be shared among five people, will rise in price by $2 to $39.95 per month.

APPLE BRIEFLY OVERTAKES NVIDIA AS WORLD'S MOST VALUABLE COMPANY AMID AI INVESTMENT DOUBTS

Ticker Security Last Change Change % AAPL APPLE INC. 327.74 +1.15 +0.35% The price increases apply to consumers in the U.S. as well as other countries around the world.

The moves weren't announced by Apple, which adjusted the prices for the various subscriptions and tiers on its website on Friday. Apple told 9to5Mac, "As a result of rising licensing costs, Apple Music is increasing its subscription price beginning today."

FOX Business reached out to Apple for comment.

APPLE HIT WITH LAWSUIT CLAIMING ICLOUD+ PRIVACY TOOL COULD EXPOSE USERS' REAL EMAILS TO WEBSITES

Apple's subscription price hikes follow higher iPad and MacBook prices. (Apple)

In late June, Apple announced price hikes for its iPad tablets and MacBook laptops amid rising memory chip costs.

The company raised the price of the MacBook Air by $200 to a new total of $1,299, while the budget Neo laptop price rose from $599 to $699. The price of a MacBook Pro with 1 terabyte of storage rose $300 to $1,999, while the iPad Air with 128 gigabytes of storage rose from $599 to $749.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Apple said at the time that it has "never seen a component price increase this much, this quickly," adding that it had "shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products."

HomeStock IdeasLong IdeasTech 

SummaryMicrosoft Corporation is shifting from seat-based software subscriptions to consumption-driven AI monetization across its ecosystem.MSFT’s record $190B capital expenditure is backed by confirmed demand, with Azure capacity still lagging customer needs and $627B in contracted obligations.Copilot and GitHub Copilot adoption is accelerating, with usage-based pricing driving scalable, recurring revenue and deepening enterprise integration.At 23x forward earnings and 15-21% projected EPS growth, MSFT’s risk/reward profile is highly attractive despite near-term margin pressure. tupungato/iStock Editorial via Getty Images

Microsoft Corporation's (MSFT) recent correction has been caused almost exclusively by fears of its record-breaking capital expenditures on AI. I think the market is making the same mistake it did during the initial Azure

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MSFT over 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.

Verizon (VZ +0.59%) spent last week doing what it has done all year under CEO Dan Schulman: getting smaller. The telecom giant said it will sell 274 company-owned retail stores to franchise operators and cut about 500 corporate positions, moves that affect roughly 3,000 employees in total. The changes take effect in mid-August and come on top of the more than 13,000 job cuts Verizon announced in November.

Headlines like these can spook income investors. But does it make sense to be fearful? At the stock's current price near $44, shares yield about 6.5% -- one of the largest payouts among major U.S. companies.

So, with second-quarter earnings due Friday morning, July 24, is a dividend this big still safe at a company this focused on cutting?

I believe it is. If anything, the restructuring is part of why.

Image source: Getty Images.

Shrinking by design Schulman took over in October and has moved quickly to build a leaner company. The November restructuring was Verizon's largest-ever round of layoffs, and it included handing 179 stores to franchisees.

Last week's move extends the same strategy, leaving Verizon with about 1,000 corporate-owned stores. Most of the affected retail employees' jobs shift to the franchise operators taking over their locations rather than disappearing outright.

So far, the approach has coincided with better results, not worse. First-quarter revenue rose 2.9% year over year to $34.4 billion, and cash flow from operations came in at $8 billion. And adjusted earnings per share climbed 7.6% to $1.28 -- an acceleration the company said was its best quarterly growth on that measure since 2021.

The subscriber trends have turned as well. Verizon added 55,000 postpaid phone customers in the first quarter, its first positive result on that metric in a first quarter since 2013. Broadband remained a growth engine, adding 341,000 net customers, including 214,000 fixed wireless access connections.

Additionally, management raised its full-year guidance, now calling for adjusted earnings-per-share growth of 5% to 6%.

Today's Change

(

0.59

%) $

0.26

Current Price

$

43.76

A dividend is only as safe as the cash flow behind it. And Verizon's cash flow is heading in the right direction.

Verizon generated $3.8 billion of free cash flow during the period, up 4% year over year. For the full year, management guided for free cash flow of at least $21.5 billion, or growth of about 7%, even while spending $16 billion to $16.5 billion on capital expenditures.

The dividend costs Verizon a little over $11 billion a year. The company paid $11.2 billion in cash dividends in 2024, for instance. In other words, guided free cash flow covers the payout nearly twice over.

That's a comfortable cushion. It's also what lets a company keep raising its dividend straight through a restructuring -- Verizon has increased its payout for 20 consecutive years, a streak management extended in January.

And the valuation adds another layer of support. Shares trade at about 10 times earnings and about 9 times consensus earnings-per-share estimates for the next 12 months. Even measured against earnings rather than cash flow, the payout ratio sits near two-thirds -- elevated for most companies, but ordinary for a telecom. Nobody is paying a premium here for growth that doesn't exist.

There is an important caveat, though: growth is thin. Mobility and broadband service revenue rose just 1.6% year over year in the first quarter, growth management said was dented by a January network outage.

Of course, cost cuts can fund a dividend for a long time. But they can't grow one forever. Eventually, the leaner Verizon has to deliver sustained subscriber and revenue gains, not just a smaller expense base.

That's what makes Friday's report worth watching. The items I'd check first are free cash flow, postpaid phone additions against the company's full-year target of 750,000 to 1 million (management expects the upper half of that range), and service revenue growth with the outage noise gone.

Unless those numbers crack, the dividend looks well protected. A payout covered nearly twice over by free cash flow, backed by improving subscriber trends and a management team attacking the cost base, is not a payout in danger.

For income investors, I think the dividend stock remains a solid option at today's price. Collect the 6.5% yield, and let Schulman keep shrinking the company into better shape.

Key Takeaways WELL is expected to report Q2 revenues and normalized FFO growth on July 27 after market close.Senior housing demand, muted new supply and long-term leases may support Welltower's results.High interest expenses could weigh on Welltower, while investment and development efforts continue. Welltower, Inc. (WELL - Free Report) is slated to report second-quarter 2026 results on July 27, after market close. The quarterly results are likely to reflect year-over-year growth in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this Toledo, OH-based healthcare real estate investment trust (REIT) witnessed a normalized FFO per share of $1.47, beating the Zacks Consensus Estimate of $1.45. Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the senior housing operating (SHO) portfolio.

Over the preceding four quarters, Welltower’s normalized FFO per share beat the Zacks Consensus Estimate on all occasions, with the average beat being 2.52%. The graph below depicts this surprising history:

Factors at Play for WELLWelltower owns a diversified portfolio in the healthcare real estate industry across the major, high-growth markets of the United States, Canada and the United Kingdom. During the second quarter, the company’s SHO portfolio is likely to have continued to benefit from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is usually higher than that of the general population. In addition, muted new supply is expected to have provided a favorable operating environment for this portfolio.

Further, Welltower’s long-term leases with its healthcare management companies or operators are anticipated to have led to stable revenue generation, boosting its top line.

The Zacks Consensus Estimate for quarterly total revenues is pegged at $3.43 billion, suggesting an increase of 34.5% from the prior-year period’s reported number.

We expect WELL to have continued its investment and development activities during the to-be-reported quarter, supported by its solid balance sheet position and capital-recycling efforts.

WELL’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for second-quarter normalized FFO per share has been revised a cent upward to $1.55 over the past month. The figure suggests an increase of 21.1% from the year-ago reported number.

However, high interest expenses are likely to have been a spoilsport for Welltower during the to-be-reported quarter.

What Our Quantitative Model Predicts for WELLOur proven model does not conclusively predict a surprise in terms of FFO per share for Welltower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Welltower currently has an Earnings ESP of -0.72% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

BXP, which is scheduled to report second-quarter 2026 results on July 28, has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties is slated to report second-quarter 2026 results on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

, /PRNewswire/ -- The Board of Directors of Albemarle Corporation (NYSE: ALB) today announced that it declared a quarterly common stock dividend of $0.41 per share. The dividend, which has an annualized rate of $1.64, is payable Oct. 1, 2026, to shareholders of record at the close of business as of Sept. 11, 2026.

About Albemarle
Albemarle Corporation (NYSE: ALB) is a world leader in transforming essential resources into critical ingredients for mobility, energy, connectivity and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at Albemarle.com.

Albemarle regularly posts information to Albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, U.S. Securities and Exchange Commission filings and other information regarding the company, its businesses and the markets it serves.

Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, including, without limitation, statements related to future dividends and results, which may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from the views expressed. Factors that could cause actual results to differ materially from the statements expressed or implied in any forward-looking statement include, without limitation: changes in economic and business conditions; potential expected market pricing of bromine, lithium and spodumene and other underlying assumptions and our 2026 outlook considerations; adverse changes in liquidity or financial or operating performance; changes in the demand for our products or the end-user markets in which our products are sold and the other factors detailed from time to time in the reports we file with the U.S. Securities and Exchange Commission, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release. We assume no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Investor Relations Contact: +1 (980) 308-6194, [email protected]
Media Contact: Courtney St. Onge, +1 (980) 308-6310, [email protected] 

SOURCE Albemarle Corporation

Palo Alto Networks Inc. PANW is emerging as one of Wall Street's preferred cybersecurity plays as concerns over increasingly powerful artificial intelligence models drive demand for security products and services.

The view follows comments from International Business Machines (IBM), which said last week that enterprise customers are placing greater emphasis on cybersecurity as more advanced AI models enter the market.

In a research note published Monday, William Blair named Palo Alto Networks its top pick in the cybersecurity sector, arguing that AI is creating more demand for cybersecurity solutions rather than reducing it.

Palo Alto shares fell about 3% to $338.19 on Tuesday after declining 2.8% in the previous session.

Despite the recent pullback, the stock has gained 83% this year and has posted gains in each of the past four months.

William Blair said discussions with private companies, resellers, industry participants and thought leaders pointed to strong cybersecurity spending during the second quarter.

The firm attributed the trend to increasing concerns surrounding Anthropic's Mythos AI model, demand for firewalls ahead of expected price increases and broader worries about AI-driven cyber threats.

Analyst Jonathan Ho wrote, "We are seeing a dramatic shift in prioritization as customers rush to purchase firewalls ahead of expected price increases and as supply chain challenges loom in the background."

The firm also said cybersecurity has become a higher priority following the release of Anthropic's Mythos model and Nvidia's next-generation Blackwell AI architecture.

According to William Blair, spending has been particularly strong for companies offering firewall products and vulnerability management services.

"We believe the strong near-term performance in security stocks following last quarter’s declines suggests that cybersecurity is now perceived as a beneficiary of AI," Ho wrote.

The report noted that vulnerability management has become a leading concern for customers, while spending on AI security and zero-trust projects has temporarily taken a back seat as organizations focus on addressing immediate risks associated with new AI models.

Palo Alto remains William Blair's top cybersecurity pickWilliam Blair maintained an Outperform rating on Palo Alto Networks, citing its competitive position and favorable demand trends.

"We believe Palo Alto continues to take share in the market and benefits from customers deciding to pull the trigger early as the perception is that price increases are coming and backlog/lead times are building," Ho wrote.

The firm said stronger firewall demand should support growth in both annual recurring revenue and product revenue, although rising hardware firewall component costs could weigh on margins.

William Blair also believes AI presents a long-term growth opportunity for established cybersecurity companies.

"AI offers a significant opportunity longer term, as platform vendors appear best positioned from a trust perspective to bring security for AI to customers," Ho wrote.

He added that it was "unlikely" that frontier AI model developers would replace traditional cybersecurity providers.

Palo Alto has also received a series of higher price targets from other Wall Street firms in recent weeks.

Tigress Financial Partners raised its target price to $430, citing the strength of the company's AI-driven platform following its third-quarter results.

Evercore ISI increased its target to $415 after positive channel checks and expectations for future free cash flow generation.

Needham also lifted its price target to $425, pointing to optimism surrounding the company's fiscal 2027 growth outlook following discussions with management.

The Trade Desk (Trade Desk Inc (NASDAQ:TTD))'s upcoming print does not look compelling in either direction, according to analysts at Jefferies, who warned that structural challenges are likely to persist regardless of the outcome of the company's dispute with Publicis.

The brokerage said it is modeling second-quarter revenue growth of 8% year-over-year, in line with Street estimates, though it would not rule out a typical beat of around 2%.

Jefferies noted the second-quarter guide likely already reflects a full quarter of impact from the Publicis dispute, which began in mid-March, and that 8% year-over-year growth implies just 9% quarter-over-quarter growth, well below the 13%, 19% and 21% quarter-over-quarter growth Trade Desk posted in the second quarters of 2025, 2024 and 2023, respectively.

For the third quarter, Jefferies is modeling 9% year-over-year growth, also in line with the Street, and called the guide a possible swing factor given the Publicis resolution and new go-to-market leadership. The firm said Street estimates for the third quarter imply 7% quarter-over-quarter growth, consistent with typical seasonality, and that the Publicis resolution along with modest political ad spend could drive upside.

At the same time, Jefferies said it has limited visibility into the concessions made to secure the Publicis resolution and is watching whether recent leadership hires, including a new chief business development officer, chief commercial officer and vice president of client strategy, create near-term disruption to the go-to-market organization.

Looking further out, Jefferies said Street estimates for 2027 revenue growth of 9.4%, roughly stable versus 9.8% in 2026, look aggressive given ongoing structural headwinds, including potential take-rate pressure, risk of incremental share loss and a tougher comparison against this year's political spending tailwind. The firm said stable growth is harder to sustain on a larger revenue base, with two-year growth trends yet to find a floor.

Jefferies pointed to competitive pressure from Amazon as a continuing risk, citing potential take-rate compression and share loss at a time when overall brand budget growth is slowing and spending continues to shift toward performance channels.

The firm also cited reports of declining open web publisher traffic as a potential structural headwind to Trade Desk's non-CTV business, and said it views competitive and operational pressures as stickier than management's more cyclical characterization.

Jefferies lowered its 2027 revenue estimate by 2% and its 2027 EBITDA estimate by 3% to approximately $1.4 billion, in line with the Street.

ToplineNorthrop Grumman CEO Kathy Warden on Tuesday appeared to avoid a question about whether the defense contractor’s robotic spacecraft—scheduled for an evening launch by SpaceX—could be weaponized, suggesting she would “leave it up to the U.S. government.”

“I will leave it up to the U.S. government,” CEO Kathy Warden said during an earnings call.

Copyright 2026 The Associated Press. All rights reserved.

Key FactsNorthrop Grumman’s Mission Robotic Vehicle (MRV) is scheduled to launch on Tuesday barring a weather delay, Warden said during the firm’s earnings call, with a roughly four-hour launch window opening at 5:15 p.m. EDT.

Northrop Grumman has pitched its MRV as the first robotic spacecraft capable of repairing, relocating and upgrading satellites in orbit, and Warden indicated the MRV will become operational in 2027 after orbital positioning and testing.

When asked by Melius Research analyst Scott Mikus whether there was a market for an “offensive version” of the MRV that could disable other satellites, Warden replied: “I will leave it up to the U.S. government to decide how that capability might fulfill mission objectives.”

big number$105 billion. That’s the size of Northrop Grumman’s backlog, a record, the company reported Tuesday. The defense contractor raised its sales outlook for the year to up to $44.25 billion, above consensus Wall Street estimates of just below $44 billion, according to FactSet. Earnings through Northrop Grumman’s latest quarter came at $4.86 per share and revenue hit $44.8 billion, well above projections of $2.96 per share and $35.7 billion, respectively.

tangentTesla CEO Elon Musk said in April the automaker’s humanoid robot Optimus “will not just be Tesla’s biggest product ever, but probably the biggest product ever.” Tesla unveiled its robotics project in 2021, as Musk said the company’s goal is to “make a useful humanoid robot as quickly as possible.”

key backgroundNorthrop Grumman has positioned space as one of its major strategic business targets in recent years, landing a series of contracts with the U.S. military. The defense contractor has also expanded into servicing satellites through its SpaceLogistics subsidiary, which developed the MRV. Northrop Grumman’s space segment accounted for 15% of all of its revenue through the latest quarter in addition to a backlog exceeding $16 billion.

further readingForbesTesla Beats First-Quarter Expectations Amid Pivot To Robotics, AIBy Alicia Park

, /PRNewswire/ -- EQT Corporation (NYSE: EQT) today announced financial and operational results for the second quarter of 2026.

Second Quarter 2026 Results:

Production: Sales volume of 634 Bcfe, above the high-end of guidance due to strong well performance, system pressure optimization and lower-than-expected price related curtailments Capital Expenditures: $666 million, 9% below the low-end of guidance, benefiting from operational efficiency gains and lower-than-expected infrastructure spending Realized Pricing: Differential of $(0.67), favorable to guidance despite widening basis during the quarter due to benefits from marketing optimization and curtailment strategy Operating Costs: Total per unit operating costs of $1.03 per Mcfe, at the low end of guidance driven by lower-than-expected SG&A, transmission and LOE expenses Cash Flow: Net cash provided by operating activities of $1,048 million; generated free cash flow attributable to EQT(1) of $330 million Balance Sheet: Exited the quarter with $5.7 billion total debt and $5.5 billion net debt,(1) inclusive of $101 million of working capital usage(2) during the quarter; subsequent to the quarter end, repaid $115 million of 2026 debentures Second Quarter 2026 and Recent Highlights:

Record-Setting Operations: Drilled the longest lateral in the history of shale development at more than 29,000' while staying 100% in zone; set new basin-wide 24-hour drilling record and new EQT 48-hour drilling record in the process Raising Production Guidance: Raising 2026 production guidance by ~90 Bcfe due to better-than-expected benefits from compression investments improving both existing and new wells and shallowing decline rates; full-year capital spending guidance reduced by $25 million Premium Power Supply Deal: Signed 10-year definitive agreement with Competitive Power Ventures (CPV) to supply 325,000 Dth/d of natural gas to the CPV Shay Energy Center in Doddridge County, WV; pricing linked to PJM power prices, providing a substantial uplift relative to in-basin pricing Accelerating MVP Southgate: Secured all key regulatory approvals; electing to accelerate $85 million of capital contributions to de-risk and complete construction by year-end 2026 LNG Offtake SPA: Signed 5-year offtake agreement with a large Asian integrated energy company for 0.5 million tonnes per annum of LNG sourced from various Gulf Coast LNG facilities beginning in 2028; deal is expected to increase 2028 free cash flow(1) by ~$45 million at recent strip pricing Blackline Midstream Acquisition: Closed on the $77 million acquisition of Blackline Midstream, consisting of two propane storage and distribution terminals in New England; advances vertical integration strategy at an attractive valuation with significant synergy potential and minimal capital requirements President and CEO Toby Z. Rice stated, "EQT delivered outstanding operational and financial performance in the second quarter, driven by record-setting execution and strong well productivity that resulted in production well above the high end of guidance. Due to the sustained production outperformance resulting from our compression investments, we are raising 2026 production guidance by 90 Bcfe, while lowering our full-year CapEx guidance by $25 million. These results further demonstrate the strength of our low-cost operating model and our ability to consistently create value for shareholders."

Rice continued, "We also announced another long-term gas supply agreement supporting a new 2-gigawatt power generation facility in the heart of West Virginia, further validating our view that the next wave of natural gas demand growth is emerging in our backyard. This agreement provides EQT a substantial premium over in-basin pricing and is another example of how EQT is converting growing regional demand into durable shareholder value. As power generators and data center developers increasingly look to secure reliable, long-term energy supply, EQT has become the partner of choice in Appalachia, leveraging our scale, infrastructure footprint and commercial capabilities to capture an outsized share of this demand growth."

(1)

A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.

(2)

Represents the decrease in changes in other assets and liabilities as derived from the Statements of Condensed Consolidated Cash Flows to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Second Quarter 2026 Financial and Operational Performance

Three Months Ended

June 30,

2026

2025

Change

(Millions, unless otherwise noted)

Total sales volume (Bcfe)

634

568

66

Average realized price ($/Mcfe)

$             2.65

$             2.81

$            (0.16)

Net income attributable to EQT

$              211

$              784

$            (573)

Adjusted net income attributable to EQT (a)

$              244

$              273

$              (29)

Diluted income per share (EPS)

$             0.34

$             1.30

$            (0.96)

Adjusted EPS (a)

$             0.39

$             0.45

$            (0.06)

Net income

$              281

$              857

$            (576)

Adjusted EBITDA (a)

$            1,203

$            1,158

$                45

Adjusted EBITDA attributable to EQT (a)

$            1,067

$            1,033

$                34

Net cash provided by operating activities

$            1,048

$            1,242

$            (194)

Adjusted operating cash flow (a)

$            1,149

$              918

$              231

Adjusted operating cash flow attributable to EQT (a)

$            1,014

$              794

$              220

Capital expenditures

$              666

$              554

$              112

Capital contributions to equity method investments

$                29

$                24

$                 5

Free cash flow (a)

$              454

$              340

$              114

Free cash flow attributable to EQT (a)

$              330

$              240

$                90

(a)

A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.

Per Unit Operating Costs
The following table presents certain of the Company's consolidated operating costs on a per unit basis.(a)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

($/Mcfe)

Gathering

$          0.09

$          0.08

$          0.09

$          0.08

Transmission

0.40

0.45

0.41

0.45

Processing

0.12

0.15

0.12

0.15

Lease operating expense (LOE)

0.10

0.09

0.09

0.08

Production taxes

0.06

0.07

0.08

0.08

Operating and maintenance (O&M)

0.09

0.10

0.09

0.09

Selling, general and administrative (SG&A)

0.17

0.14

0.16

0.15

Operating costs

$          1.03

$          1.08

$          1.04

$          1.08

Production depletion

$          0.95

$          0.95

$          0.93

$          0.95

(a)

References in this release to the "Company" refer to EQT Corporation together with its consolidated subsidiaries. As used throughout this release, per unit operating costs reflect, for each period presented, the consolidated amount of such operating cost for the Company (aggregated irrespective of business segment) divided by total sales volume (Mcfe).

Gathering expense per Mcfe increased for the three months ended June 30, 2026 compared to the same period in 2025 due primarily to higher volumes gathered by third parties from wells turned-in-line in the first quarter of 2026.

Transmission expense per Mcfe decreased for the three months ended June 30, 2026 compared to the same period in 2025 due primarily to higher sales volume.

Processing expense per Mcfe decreased for the three months ended June 30, 2026 compared to the same period in 2025 due primarily to decreased production of gas that requires processing and higher sales volume.

Selling, general and administrative expense increased for the three months ended June 30, 2026 compared to the same period in 2025 due primarily to higher long-term incentive compensation costs and higher professional service costs.

Liquidity
As of June 30, 2026, the Company had $52 million of borrowings outstanding under EQT Corporation's $3.5 billion revolving credit facility. Total liquidity, excluding available capacity under Eureka Midstream, LLC's (Eureka) revolving credit facility, as of June 30, 2026 was approximately $3.6 billion.

As of June 30, 2026, total debt and net debt(1) were $5.7 billion and $5.5 billion, respectively, compared to $7.8 billion and $7.7 billion, respectively, as of December 31, 2025.

(1)

A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.

Blackline Midstream Acquisition
On July 21, 2026, the Company completed its acquisition of all of the operating subsidiaries of Blackline Midstream, LLC (Blackline). Blackline owns and operates two strategically located propane storage and distribution terminals in New England, representing the largest propane facilities in the region with rail, waterborne and retail access. Collectively, the assets provide 46 million gallons of storage capacity, with the Company currently supplying ~60% of Blackline's propane volumes. The assets provide optionality for EQT's propane production, improve flow assurance, enhance the Company's ability to optimize pricing and create additional commercial opportunity through domestic and international supply channels. The $77 million purchase price equates to a ~20% free cash flow yield.(1)

(1)

EQT expects the Blackline assets to generate average annual free cash flow over the next five years of approximately $15 million. The free cash flow yield referred to in this news release is derived by dividing the Blackline assets' projected 2027 – 2031 average annual free cash flow by the purchase price (assuming no adjustments thereto). Free cash flow and free cash flow yield are non-GAAP financial measures. See the Non-GAAP Disclosures section of this news release for important information regarding these non-GAAP financial measures.

Third Quarter 2026 Outlook
The Company is raising its full-year 2026 total sales volume guidance to 2,375 – 2,450 Bcfe, reflecting strong performance to date. The Company expects total sales volume of 570 – 620 Bcfe in the third quarter of 2026. The Company now expects its full-year 2026 maintenance capital expenditures to total $2,040 – $2,190 million, inclusive of $510 – $580 million in the third quarter of 2026. The Company expects growth capital expenditures of $200 – $240 million in the third quarter of 2026. The Company plans to turn-in-line (TIL) 34 – 50 net wells in the third quarter of 2026.

2026 Guidance

Production

Q3 2026

Full Year 2026

Total sales volume (Bcfe)

570 – 620

2,375 – 2,450

Liquids sales volume, excluding ethane (Mbbl)

3,400 – 3,700

14,200 – 15,000

Ethane sales volume (Mbbl)

1,750 – 1,900

7,700 – 8,100

Total liquids sales volume (Mbbl)

5,150 – 5,600

21,900 – 23,100

Btu uplift (MMBtu/Mcf)

1.050 – 1.060

1.050 – 1.060

Average Differential ($/Mcf, including basis hedges)

($0.75) – ($0.65)

($0.55) – ($0.35)

Resource Counts

Top-hole rigs

2 – 3

2 – 3

Horizontal rigs

2 – 3

2 – 3

Frac crews

2 – 3

2 – 3

Third-party Midstream Revenue ($ Millions)

$130 – $155

$600 – $700

Per Unit Operating Costs ($/Mcfe)

Gathering

$0.09 – $0.11

$0.09 – $0.11

Transmission

$0.42 – $0.44

$0.41 – $0.44

Processing

$0.11 – $0.13

$0.11 – $0.13

LOE

$0.11 – $0.13

$0.10 – $0.12

Production taxes

$0.06 – $0.08

$0.07 – $0.09

O&M

$0.10 – $0.12

$0.09 – $0.11

SG&A

$0.20 – $0.22

$0.18 – $0.20

Operating costs

$1.09 – $1.23

$1.05 – $1.20

Equity Method Investments and Midstream JV Noncontrolling Interest ($ Millions)

Distributions from equity method investments (a)

$60 – $70

$220 – $250

Distributions to PipeBox LLC (the Midstream JV) noncontrolling interest (b)

$110 – $125

$430 – $470

Capital Expenditures and Capital Contributions ($ Millions)

Upstream maintenance

$385 – $435

$1,600 – $1,700

Midstream maintenance

$70 – $80

$220 – $250

Corporate and capitalized costs

$55 – $65

$220 – $240

Total maintenance capital expenditures

$510 – $580

$2,040 – $2,190

Growth capital expenditures

$200 – $240

$580 – $640

Capital contributions to equity method investments (c)

$60 – $70

$150 – $170

(a)

Includes distributions from Series A of Mountain Valley Pipeline, LLC for MVP Mainline and Laurel Mountain Midstream, LLC (LMM).

(b)

Assumes Midstream JV cash distributions of 60% to third-party noncontrolling interest.

(c)

Includes capital contributions to Mountain Valley Pipeline, LLC (the MVP Joint Venture), including to Series A of Mountain Valley Pipeline, LLC for MVP Mainline, Series B of Mountain Valley Pipeline, LLC for MVP Southgate and Series C of Mountain Valley Pipeline, LLC for MVP Boost, and LMM.

Second Quarter 2026 Earnings Webcast Information
The Company's conference call with securities analysts begins at 10:00 a.m. ET on Wednesday July 22, 2026 and will be broadcast live via webcast. An accompanying presentation is available on the Company's investor relations website, www.ir.eqt.com, under "Events & Presentations." To access the live audio webcast, visit the Company's investor relations website. A replay will be archived and available for one year in the same location after the conclusion of the live event.

Hedging (as of July 14, 2026)
The following table summarizes the approximate volume and prices of the Company's NYMEX hedge positions. The difference between the fixed price and NYMEX price is included in average differential presented in the Company's price reconciliation.

Q3 2026 (a)

Q4 2026

Q1 2027

Q2 2027

Q3 2027

Q4 2027

Hedged Volume (MMDth)

125

108

62

138

140

47

Hedged Volume (MMDth/d)

1.4

1.2

0.7

1.5

1.5

0.5

Swaps – Short

Volume (MMDth)

—

—

—

65

66

22

Avg. Price ($/Dth)

$           —

$           —

$           —

$       3.16

$       3.16

$       3.16

Calls – Short

Volume (MMDth)

125

108

62

73

74

25

Avg. Strike ($/Dth)

$       4.94

$       5.13

$       5.77

$       4.51

$       4.51

$       4.51

Puts – Long

Volume (MMDth)

125

108

62

73

74

25

Avg. Strike ($/Dth)

$       3.50

$       3.72

$       3.65

$       3.00

$       3.00

$       3.00

Puts – Short

Volume (MMDth)

—

—

25

73

74

25

Avg. Strike ($/Dth)

$           —

$           —

$       2.50

$       2.50

$       2.50

$       2.50

(a)

July 1 through September 30.

The Company also entered into derivative instruments to hedge basis. The Company may use other contractual agreements to implement its commodity hedging strategy from time to time.

Non-GAAP Disclosures
This news release includes the non-GAAP financial measures described below. These non-GAAP measures are defined and reconciled to the most directly comparable GAAP measure. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income attributable to EQT Corporation, diluted EPS, net income, net cash provided by operating activities, total Upstream operating revenues, total debt, or any other measure calculated in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital, tax structure, and historic costs of depreciable assets.

Adjusted Net Income Attributable to EQT and Adjusted EPS
Adjusted net income attributable to EQT is defined as net income attributable to EQT Corporation, excluding loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EPS is defined as adjusted net income attributable to EQT divided by diluted weighted average common shares outstanding.

The Company's management believes that adjusted net income attributable to EQT and adjusted EPS provide useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted net income attributable to EQT and adjusted EPS reflect only the impact of settled derivative contracts; thus, the measures exclude the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement.

The table below reconciles adjusted net income attributable to EQT and adjusted EPS with net income attributable to EQT Corporation and diluted EPS, respectively, the most comparable financial measures calculated in accordance with GAAP, each as derived from the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands, except per share amounts)

Net income attributable to EQT Corporation

$     211,425

$     784,147

$   1,698,654

$   1,026,286

Add (deduct):

Loss on sale/exchange of long-lived assets

3,577

2,990

3,552

3,221

Impairment and expiration of leases

6,232

3,254

10,055

5,915

(Gain) loss on derivatives

(44,640)

(719,964)

193,629

(41,045)

Net cash settlements received (paid) on derivatives

72,614

(101,364)

(231,048)

(193,350)

Other expenses (a)

3,884

147,105

6,620

153,731

Loss on debt extinguishment

341

5,889

29,869

17,569

Tax impact of non-GAAP items (b)

(9,903)

151,016

(2,987)

13,956

Adjusted net income attributable to EQT

$     243,530

$     273,073

$   1,708,344

$     986,283

Diluted weighted average common shares outstanding

629,049

602,924

629,070

602,896

Diluted EPS

$          0.34

$          1.30

$          2.70

$          1.70

Adjusted EPS

$          0.39

$          0.45

$          2.72

$          1.64

(a)

Consists primarily of transaction costs associated with acquisitions and other strategic transactions as well as costs related to exploring new venture opportunities. In addition, other expenses for both the three and six months ended June 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.

(b)

The tax impact of non-GAAP items represents the incremental tax expense/benefit that would have been incurred by the Company had these items been excluded from net income attributable to EQT Corporation. This approach resulted in a blended tax rate of 23.6% and 22.8% for the three months ended June 30, 2026 and 2025, respectively, and 23.6% and 25.9% for the six months ended June 30, 2026 and 2025, respectively. The blended tax rates differ from the Company's statutory tax rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits.

Adjusted EBITDA, Adjusted EBITDA Attributable to Noncontrolling Interests and Adjusted EBITDA Attributable to EQT
Adjusted EBITDA is defined as net income excluding net interest expense, income tax expense, depreciation, depletion and amortization, loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EBITDA attributable to EQT is defined as adjusted EBITDA less adjusted EBITDA attributable to noncontrolling interests. Adjusted EBITDA attributable to noncontrolling interests is defined as the proportionate share of adjusted EBITDA attributable to the third-party ownership interests in the Non-Wholly Owned Consolidated Subsidiaries (defined below).

The Company's management believes that these measures provide useful information to investors regarding the Company's financial condition and results of operations because they help facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted EBITDA reflects only the impact of settled derivative instruments and excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. In addition, adjusted EBITDA includes the impact of distributions received from equity method investments, which excludes the impact of depreciation included within equity earnings from equity method investments and helps facilitate comparisons of the core operating performance of the Company's equity method investments.

The table below reconciles adjusted EBITDA and adjusted EBITDA attributable to EQT with net income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands)

Net income

$     281,448

$     856,656

$   1,835,378

$   1,172,074

Add (deduct):

Interest expense, net

75,452

105,668

172,229

223,237

Income tax expense

84,933

235,615

518,285

314,283

Depreciation, depletion and amortization

689,592

623,471

1,344,384

1,244,246

Loss on sale/exchange of long-lived assets

3,577

2,990

3,552

3,221

Impairment and expiration of leases

6,232

3,254

10,055

5,915

(Gain) loss on derivatives

(44,640)

(719,964)

193,629

(41,045)

Net cash settlements received (paid) on derivatives

72,614

(101,364)

(231,048)

(193,350)

Other expenses (a)

3,884

147,105

6,620

153,731

Income from investments

(44,732)

(67,174)

(122,241)

(93,636)

Distributions from equity method investments

74,289

66,319

121,323

132,881

Loss on debt extinguishment

341

5,889

29,869

17,569

Adjusted EBITDA

1,202,990

1,158,465

3,882,035

2,939,126

Deduct: Adjusted EBITDA attributable to noncontrolling interests (b)

(135,958)

(125,164)

(268,041)

(261,964)

Adjusted EBITDA attributable to EQT

$   1,067,032

$   1,033,301

$   3,613,994

$   2,677,162

(a)

Consists primarily of transaction costs associated with acquisitions and other strategic transactions as well as costs related to exploring new venture opportunities. In addition, other expenses for both the three and six months ended June 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.

(b)

A non-GAAP financial measure. See below for a reconciliation of this non-GAAP financial measure to the most comparable financial measure as calculated in accordance with GAAP.

The Company consolidates its controlling equity interests in the Midstream JV and Eureka Midstream Holdings, LLC (Eureka Holdings and, together with the Midstream JV, the Non-Wholly Owned Consolidated Subsidiaries). The table below reconciles adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries and adjusted EBITDA attributable to noncontrolling interests with net income of the Non-Wholly Owned Consolidated Subsidiaries, the most comparable financial measure as calculated in accordance with GAAP. The Company's management believes that adjusted EBITDA attributable to noncontrolling interests provides useful information to investors regarding the impact of the third-party ownership interest in the Non-Wholly Owned Consolidated Subsidiaries on the Company's financial condition and results of operations.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands)

Non-Wholly Owned Consolidated Subsidiaries:

Net income

$     168,558

$     164,435

$     369,790

$     342,878

Add (deduct):

Interest expense, net

3,434

3,381

6,781

7,272

Depreciation and amortization

31,944

30,842

65,075

61,844

Loss on sale/exchange of long-lived assets

724

302

724

349

Income from investments

(42,954)

(40,711)

(97,986)

(83,574)

Distributions from equity method investments

70,921

58,724

114,187

124,511

Adjusted EBITDA

232,627

216,973

458,571

453,280

Deduct: Adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT (a)

(96,669)

(91,809)

(190,530)

(191,316)

Adjusted EBITDA attributable to noncontrolling interests

$     135,958

$     125,164

$     268,041

$     261,964

(a)

Adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT is calculated based on EQT Corporation's current 40% Class A Unitholder share of available cash flow distributions from the Midstream JV and 60% ownership interest in Eureka Holdings. The Company believes that using its distribution share from the Midstream JV in the calculation of adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT best reflects the economic impact of the Company's investment in the Midstream JV on adjusted EBITDA and earnings trends.

Adjusted Operating Cash Flow, Adjusted Operating Cash Flow Attributable to EQT, Free Cash Flow, Free Cash Flow Attributable to EQT and Free Cash Flow Yield
Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets and liabilities. Adjusted operating cash flow attributable to EQT is defined as adjusted operating cash flow less adjusted EBITDA attributable to noncontrolling interests excluding net interest expense attributable to noncontrolling interests. Free cash flow is defined as adjusted operating cash flow less accrual-based capital expenditures and capital contributions to equity method investments. Free cash flow attributable to EQT is defined as adjusted operating cash flow attributable to EQT less accrual-based capital expenditures and capital contributions to equity method investments excluding the proportionate share of accrual-based capital expenditures and capital contributions to equity method investments attributable to the third-party ownership interests in the Non-Wholly Owned Consolidated Subsidiaries. Free cash flow yield is defined as free cash flow divided by market capitalization.

The Company's management believes that these measures provide useful information to investors regarding the Company's liquidity, including the Company's ability to generate cash flow in excess of its capital requirements and return cash to shareholders.

The tables below reconcile adjusted operating cash flow, adjusted operating cash flow attributable to EQT, free cash flow and free cash flow attributable to EQT with net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP, as derived from the Statements of Condensed Consolidated Cash Flows to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands)

Net cash provided by operating activities

$   1,048,012

$   1,241,699

$   4,103,059

$   2,982,866

Decrease (increase) in changes in other assets and liabilities

100,617

(323,821)

(373,651)

(398,220)

Adjusted operating cash flow (a)

1,148,629

917,878

3,729,408

2,584,646

Deduct:

Capital expenditures

(666,258)

(553,559)

(1,274,094)

(1,051,003)

Capital contributions to equity method investments

(28,637)

(24,101)

(56,520)

(42,047)

Free cash flow (a)

$      453,734

$      340,218

$   2,398,794

$   1,491,596

(a)

Adjusted operating cash flow and free cash flow for the three and six months ended June 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands)

Net cash provided by operating activities

$   1,048,012

$   1,241,699

$   4,103,059

$   2,982,866

Decrease (increase) in changes in other assets and liabilities

100,617

(323,821)

(373,651)

(398,220)

Adjusted operating cash flow (a)

1,148,629

917,878

3,729,408

2,584,646

(Deduct) add:

Adjusted EBITDA attributable to noncontrolling interests (b)

(135,958)

(125,164)

(268,041)

(261,964)

Net interest expense and other attributable to noncontrolling interests

1,268

1,028

2,205

2,280

Adjusted operating cash flow attributable to EQT (a) (c)

1,013,939

793,742

3,463,572

2,324,962

(Deduct) add:

Capital expenditures

(666,258)

(553,559)

(1,274,094)

(1,051,003)

Capital contributions to equity method investments

(28,637)

(24,101)

(56,520)

(42,047)

Capital expenditures attributable to noncontrolling interests

9,410

9,907

23,937

20,089

Capital contributions to equity method investments attributable to noncontrolling interests

1,212

13,587

4,272

23,123

Free cash flow attributable to EQT (a) (c)

$      329,666

$      239,576

$   2,161,167

$   1,275,124

(a)

Adjusted operating cash flow, adjusted operating cash flow attributable to EQT and free cash flow attributable to EQT for the three and six months ended June 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.

(b)

A non-GAAP financial measure. See above for a reconciliation of this non-GAAP financial measure to the most comparable financial measure as calculated in accordance with GAAP.

(c)

Adjusted operating cash flow attributable to EQT and free cash flow attributable to EQT are calculated based on EQT Corporation's current 40% Class A Unitholder share of available cash flow distributions from the Midstream JV and 60% ownership interest in Eureka Holdings. The Company believes that using its distribution share from the Midstream JV in the calculation of these measures best reflect the economic impact of the Company's investment in the Midstream JV on adjusted operating cash flow, free cash flow and earnings trends.

In this news release, the Company has disclosed certain projections of free cash flow, including the average annual free cash flow expected to be generated by the Blackline assets during 2027 – 2031. The Company has not provided projected net cash provided by operating activities or reconciliations of projected free cash flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy without unreasonable efforts such as predicting the timing of its payments and its customers' payments, with accuracy to a specific day, months in advance. Furthermore, the Company does not provide guidance with respect to its average realized price, among other items, that impact reconciling items between net cash provided by operating activities and free cash flow. Natural gas prices are volatile and out of the Company's control, and the timing of transactions and the income tax effects of future transactions and other items are difficult to accurately predict. Therefore, the Company is unable to provide projected net cash provided by operating activities, or the related reconciliations of projected free cash flow to projected net cash provided by operating activities, without unreasonable effort.

Upstream Adjusted Operating Revenues
Upstream adjusted operating revenues (also referred to as total natural gas and liquids sales, including cash settled derivatives and previously referred to as Production adjusted operating revenues) is defined as total Upstream operating revenues, less the revenue impact of changes in the fair value of derivative instruments prior to settlement and Upstream other revenues. The Company's management believes that this measure provides useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods. Upstream adjusted operating revenues reflects only the impact of settled derivative contracts; thus, the measure excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. The measure also excludes Upstream other revenues because it is unrelated to the revenue from the Company's natural gas and liquids production.

The table below reconciles Upstream adjusted operating revenues with total Upstream operating revenues, the most comparable financial measure calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands, unless otherwise noted)

Total Upstream operating revenues

$   1,663,633

$   2,420,542

$   4,870,072

$   3,989,825

(Deduct) add:

Upstream (gain) loss on derivatives

(44,640)

(719,964)

193,629

(41,045)

Net cash settlements received (paid) on derivatives

72,614

(101,364)

(231,048)

(193,350)

Upstream other revenues

(8,979)

(79)

(13,752)

(3,554)

Upstream adjusted operating revenues

$   1,682,628

$   1,599,135

$   4,818,901

$   3,751,876

Total sales volume (MMcfe)

634,474

568,227

1,252,173

1,138,978

Average sales price ($/Mcfe)

$          2.54

$          2.99

$          4.03

$          3.46

Average realized price ($/Mcfe)

$          2.65

$          2.81

$          3.85

$          3.29

Net Debt
Net debt is defined as total debt less cash and cash equivalents. Total debt includes the Company's current portion of debt, revolving credit facility borrowings and senior notes. The Company's management believes that net debt provides useful information to investors regarding the Company's financial condition and assists them in evaluating the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt.

The table below reconciles net debt with total debt, the most comparable financial measure calculated in accordance with GAAP, as derived from the Condensed Consolidated Balance Sheets to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

June 30, 2026

December 31, 2025

(Thousands)

Current portion of debt (a)

$           114,959

$           507,119

Revolving credit facility borrowings (b)

324,000

360,000

Senior notes

5,216,755

6,933,209

Total debt

5,655,714

7,800,328

Deduct: Cash and cash equivalents

(112,863)

(110,795)

Net debt

$         5,542,851

$         7,689,533

(a)

As of June 30, 2026, the current portion of debt included EQT Corporation's 7.75% debentures. As of December 31, 2025, the current portion of debt included EQT Corporation's 3.125% senior notes and 7.75% debentures.

(b)

As of June 30, 2026 and December 31, 2025, revolving credit facility borrowings included $272 million and $285 million, respectively, of borrowings outstanding under Eureka's revolving credit facility.

Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
[email protected]

About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas company with upstream and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do.

EQT management speaks to investors from time to time and the analyst presentation for these discussions, which is updated periodically, is available via EQT's investor relations website at https://ir.eqt.com.

Cautionary Statements Regarding Forward-Looking Statements
This news release contains, and certain statements made during the above referenced conference call will be, forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release or made during the above referenced conference call specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of EQT Corporation (EQT) and its consolidated subsidiaries (collectively, the Company), including guidance regarding the Company's strategy to develop its reserves; drilling plans and programs (including the number and type of drilling rigs and the number of frac crews to be utilized by the Company, the projected amount of wells to be turned-in-line and the timing thereof); projected natural gas prices, basis and average differential; the impact of commodity prices on the Company's business; total resource potential; projected production and sales volumes, including projected strategic curtailments and the timing, duration and volume thereof; projected capital expenditures and per unit operating costs; the amount and timing of distributions to and from the Company's joint venture arrangements; the projected timing of development of MVP Southgate; the Company's ability to successfully implement and execute its operational and organizational initiatives, the timing thereof and the Company's ability to achieve the anticipated results of such initiatives; the Company's plans, objectives, expectations, goals and projections relating to the Company's LNG offtake and tolling agreements and growth projects, including statements relating to the anticipated in-service dates, volume, duration, cost, anticipated impacts to free cash flow and investment returns thereof; the Company's ability to achieve the intended operational, financial and strategic benefits from any proposed and recently completed strategic transactions, and the timing thereof, including the Company's acquisition of all of the operating subsidiaries of Blackline Midstream, LLC and related financial projections associated with such acquisition; the amount and timing of any redemptions, repayments or repurchases of EQT's common stock, the Company's outstanding debt securities or other debt instruments; the Company's ability to reduce its debt and the timing of such reductions, if any; projected free cash flow; liquidity and financing requirements, including funding sources and availability; the Company's hedging strategy and projected margin posting obligations; the Company's tax position and projected effective tax rate; and the expected impact of changes in laws.

The forward-looking statements included in this news release or made during the above referenced conference call involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by the Company. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond the Company's control. These risks and uncertainties include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; the Company's ability to appropriately allocate capital and other resources among its strategic opportunities; access to and cost of capital; the Company's hedging and other financial contracts; inherent hazards and risks normally incidental to drilling for, producing, transporting, storing and processing natural gas, natural gas liquids (NGLs) and oil; operational risks and hazards incidental to the gathering, transmission and storage of natural gas as well as unforeseen interruptions; cyber security risks and acts of sabotage; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and pipe, sand and water required to execute the Company's exploration and development plans, including as a result of inflationary pressures or tariffs; risks associated with operating primarily in the Appalachian Basin; the ability to obtain environmental and other permits and the timing thereof; construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties related to the development and construction by the Company or its joint ventures of pipeline and storage facilities and transmission assets and the optimization of such assets; the Company's ability to renew or replace expiring gathering, transmission or storage contracts at favorable rates, on a long-term basis or at all; risks relating to the Company's joint venture arrangements; government regulation or action, including regulations pertaining to methane and other greenhouse gas emissions; negative public perception of the fossil fuels industry; increased consumer demand for alternatives to natural gas; environmental and weather risks, including the possible impacts of climate change; and disruptions to the Company's business due to recently completed or pending divestitures, acquisitions and other significant strategic transactions. These and other risks and uncertainties are described under the "Risk Factors" section and elsewhere in EQT's Annual Report on Form 10-K for the year ended December 31, 2025 and other documents EQT subsequently files from time to time with the Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it.

Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, EQT does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands, except per share amounts)

Operating revenues:

Sales of natural gas, natural gas liquids and oil

$   1,610,014

$   1,700,499

$   5,049,949

$   3,945,226

Gain (loss) on derivatives

44,640

719,964

(193,629)

41,045

Pipeline and other

155,286

137,256

332,356

311,298

Total operating revenues

1,809,940

2,557,719

5,188,676

4,297,569

Operating expenses:

Transportation and processing

385,017

389,116

785,356

767,325

Production

100,316

91,518

215,494

179,956

Operating and maintenance

60,220

53,983

115,088

101,280

Selling, general and administrative

106,438

81,586

202,189

173,050

Depreciation, depletion and amortization

689,592

623,471

1,344,384

1,244,246

Loss on sale/exchange of long-lived assets

3,577

2,990

3,552

3,221

Impairment and expiration of leases

6,232

3,254

10,055

5,915

Other operating expenses

64,510

177,763

82,560

192,288

Total operating expenses

1,415,902

1,423,681

2,758,678

2,667,281

Operating income

394,038

1,134,038

2,429,998

1,630,288

Income from investments

(44,732)

(67,174)

(122,241)

(93,636)

Other income

(3,404)

(2,616)

(3,522)

(3,239)

Loss on debt extinguishment

341

5,889

29,869

17,569

Interest expense, net

75,452

105,668

172,229

223,237

Income before income taxes

366,381

1,092,271

2,353,663

1,486,357

Income tax expense

84,933

235,615

518,285

314,283

Net income

281,448

856,656

1,835,378

1,172,074

Less: Net income attributable to noncontrolling interests

70,023

72,509

136,724

145,788

Net income attributable to EQT Corporation

$      211,425

$      784,147

$   1,698,654

$   1,026,286

Income per share of common stock attributable to EQT Corporation:

Basic:

Weighted average common stock outstanding

625,962

599,221

625,549

598,574

Net income attributable to EQT Corporation

$          0.34

$           1.31

$          2.72

$          1.71

Diluted:

Weighted average common stock outstanding

629,049

602,924

629,070

602,896

Net income attributable to EQT Corporation

$          0.34

$           1.30

$          2.70

$          1.70

EQT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2026

December 31, 2025

(Thousands)

ASSETS

Current assets:

Cash and cash equivalents

$           112,863

$           110,795

Accounts receivable (less allowance for credit losses: $3,844 and $3,088)

835,140

1,457,959

Derivative instruments, at fair value

138,943

202,390

Prepaid expenses and other

90,881

124,007

Total current assets

1,177,827

1,895,151

Property, plant and equipment

49,741,567

48,472,497

Less: Accumulated depreciation and depletion

16,188,972

14,914,689

Net property, plant and equipment

33,552,595

33,557,808

Investments in unconsolidated entities

3,946,497

3,630,577

Net intangible assets

193,100

200,486

Goodwill

2,062,462

2,062,462

Other assets

388,359

446,390

Total assets

$       41,320,840

$       41,792,874

LIABILITIES AND EQUITY

Current liabilities:

Current portion of debt

$           114,959

$           507,119

Accounts payable

1,166,963

1,367,431

Derivative instruments, at fair value

50,106

137,299

Accrued interest

103,785

137,505

Other current liabilities

314,466

335,487

Total current liabilities

1,750,279

2,484,841

Revolving credit facility borrowings

324,000

360,000

Senior notes

5,216,755

6,933,209

Deferred income taxes

3,963,965

3,472,010

Asset retirement obligations and other liabilities

1,202,444

1,182,666

Total liabilities

12,457,443

14,432,726

Equity:

Common stock, no par value,

shares authorized: 1,280,000, shares issued: 625,513 and 624,076

19,529,362

19,517,761

Retained earnings

5,731,287

4,237,089

Accumulated other comprehensive loss

(1,773)

(2,173)

Total common shareholders' equity

25,258,876

23,752,677

Noncontrolling interests in consolidated subsidiaries

3,604,521

3,607,471

Total equity

28,863,397

27,360,148

Total liabilities and equity

$       41,320,840

$       41,792,874

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)

Six Months Ended

June 30,

2026

2025

(Thousands)

Cash flows from operating activities:

Net income

$   1,835,378

$   1,172,074

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

Deferred income tax expense

491,617

304,878

Depreciation, depletion and amortization

1,344,384

1,244,246

Loss on sale/exchange of long-lived assets

3,552

3,221

Impairment and expiration of leases

10,055

5,915

Income from investments

(122,241)

(93,636)

Loss on debt extinguishment

29,869

17,569

Share-based compensation expense

42,381

28,535

Distributions from equity method investments

121,323

132,881

Other

10,509

3,358

Loss (gain) on derivatives

193,629

(41,045)

Net cash settlements paid on derivatives

(231,048)

(193,350)

Changes in other assets and liabilities:

Accounts receivable

629,685

295,699

Accounts payable

(209,653)

10,253

Income tax receivable and payable

25,320

97,378

Other current assets

8,611

(1,459)

Other items, net

(80,312)

(3,651)

Net cash provided by operating activities

4,103,059

2,982,866

Cash flows from investing activities:

Capital expenditures

(1,248,676)

(1,049,289)

Cash paid for acquisitions

—

(100,167)

Net cash received (paid) for sale/exchange of assets

91

(6,284)

Cash paid for acquisitions of additional interests in equity method investments

(216,209)

—

Capital contributions to equity method investments

(56,520)

(42,047)

Other investing activities

(2,221)

(245)

Net cash used in investing activities

(1,523,535)

(1,198,032)

Cash flows from financing activities:

Proceeds from revolving credit facility borrowings

2,461,000

2,234,000

Repayment of revolving credit facility borrowings

(2,497,000)

(2,422,800)

Debt issuance costs

—

(7,238)

Repayment and retirement of debt

(2,122,944)

(813,017)

Net premiums paid on debt extinguishment

(22,631)

(24,802)

Dividends paid

(206,278)

(188,372)

Contribution from noncontrolling interests

98,357

—

Distributions to noncontrolling interests

(238,031)

(151,954)

Cash paid for taxes to net settle share-based incentive awards

(46,135)

(53,253)

Other financing activities

(3,794)

(3,999)

Net cash used in financing activities

(2,577,456)

(1,431,435)

Net change in cash and cash equivalents

2,068

353,399

Cash and cash equivalents at beginning of period

110,795

202,093

Cash and cash equivalents at end of period

$      112,863

$      555,492

EQT CORPORATION AND SUBSIDIARIES

PRICE RECONCILIATION

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(Thousands, unless otherwise noted)

NATURAL GAS

Sales volume (MMcf)

596,984

534,441

1,178,311

1,070,779

NYMEX price ($/MMBtu)

$       2.89

$       3.43

$       3.91

$       3.54

Btu uplift

0.16

0.20

0.21

0.19

Natural gas price ($/Mcf)

$       3.05

$       3.63

$       4.12

$       3.73

Basis ($/Mcf) (a)

$      (0.67)

$      (0.75)

$      (0.15)

$      (0.38)

Cash settled basis swaps ($/Mcf)

—

—

(0.16)

(0.04)

Average differential, including cash settled basis swaps ($/Mcf)

(0.67)

(0.75)

(0.31)

(0.42)

Average adjusted price ($/Mcf)

2.38

2.88

3.81

3.31

Cash settled derivatives ($/Mcf)

0.13

(0.19)

(0.03)

(0.13)

Average natural gas price, including cash settled derivatives ($/Mcf)

$       2.51

$       2.69

$       3.78

$       3.18

Natural gas sales, including cash settled derivatives

$ 1,499,693

$ 1,438,682

$ 4,448,390

$ 3,400,873

LIQUIDS

NGLs, excluding ethane:

Sales volume (MMcfe) (b)

20,751

22,475

41,309

43,347

Sales volume (Mbbl)

3,459

3,745

6,885

7,224

NGLs price ($/Bbl)

$      39.29

$      35.86

$      38.77

$      40.02

Cash settled derivatives ($/Bbl)

(0.80)

(0.22)

(0.11)

(0.70)

Average NGLs price, including cash settled derivatives ($/Bbl)

$      38.49

$      35.64

$      38.66

$      39.32

NGLs sales, including cash settled derivatives

$   133,121

$   133,488

$   266,153

$   284,023

Ethane:

Sales volume (MMcfe) (b)

13,934

9,432

26,638

20,602

Sales volume (Mbbl)

2,322

1,573

4,439

3,434

Ethane price ($/Bbl)

$       7.33

$       6.85

$       9.71

$       8.69

Ethane sales

$    17,021

$    10,775

$    43,089

$    29,829

Oil:

Sales volume (MMcfe) (b)

2,805

1,879

5,915

4,250

Sales volume (Mbbl)

468

313

986

708

Oil price ($/Bbl)

$      70.14

$      51.70

$      62.15

$      52.45

Oil sales

$    32,793

$    16,190

$    61,269

$    37,151

Total liquids sales volume (MMcfe) (b)

37,490

33,786

73,862

68,199

Total liquids sales volume (Mbbl)

6,249

5,631

12,310

11,366

Total liquids sales

$   182,935

$   160,453

$   370,511

$   351,003

TOTAL

Total natural gas and liquids sales, including cash settled derivatives (c)

$ 1,682,628

$ 1,599,135

$ 4,818,901

$ 3,751,876

Total sales volume (MMcfe)

634,474

568,227

1,252,173

1,138,978

Average realized price ($/Mcfe)

$       2.65

$       2.81

$       3.85

$       3.29

(a)

Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with the Company's firm transportation agreements, and the NYMEX natural gas price.

(b)

NGLs, ethane and oil were converted to Mcfe at a rate of six Mcfe per barrel.

(c)

Also referred to herein as Upstream adjusted operating revenues, a non-GAAP supplemental financial measure.

SOURCE EQT Corporation (EQT-IR)