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Key Takeaways YUM expects about $2.3 billion in net proceeds for debt repayment and potential share repurchases.Pizza Hut's sales and profit declines weighed on YUM, while transition services add execution risk.KFC posted 7% unit growth, while Taco Bell delivered 7% same-store sales and 19% profit growth. Yum! Brands, Inc. (YUM - Free Report) is preparing to exit Pizza Hut through transactions valued at $2.7 billion. The move could simplify the portfolio, release capital and place greater emphasis on KFC, Taco Bell and Habit Burger & Grill.

The strategic logic is clear, but the investment case still depends on closing the deals smoothly, reducing near-term borrowing pressure and proving that the remaining brands can support higher-quality growth.

YUM’s Pizza Hut Exit Sharpens Its Brand PortfolioLongRange Capital is set to acquire Pizza Hut outside Mainland China, while Yum China Holdings, Inc. (YUMC - Free Report) will purchase the Mainland China operations. The transactions are expected to separate a weaker-performing business from YUM’s faster-growing brands.

Pizza Hut’s second-quarter system sales declined 2% excluding foreign currency effects, same-store sales fell 1% and operating profit dropped 14% on the same basis. Removing that drag could make YUM’s operating profile easier to evaluate.

YUM Could Put $2.3 Billion of Proceeds to WorkManagement expects approximately $2.3 billion in net proceeds from the divestiture. Part of the cash is intended for repayment of revolver borrowings, while most of the remainder is expected to be reserved for share repurchases, subject to market conditions.

That plan gives YUM two potential uses of capital. Debt repayment could improve near-term flexibility, while repurchases could reduce the share count if completed at attractive prices.

Debt Reduction Could Strengthen YUM’s FlexibilityShort-term borrowings increased to $2.81 billion at June 30, 2026, from $38 million at the end of 2025. Total borrowings also rose to about $12.28 billion from $11.91 billion over that period.

Applying transaction proceeds to the revolver would reduce the concentration of near-term obligations. It could also give management more room to balance shareholder returns with investment in restaurant development, digital capabilities and brand support.

YUM Still Faces a Complicated Separation ProcessThe transaction does not remove Pizza Hut from YUM immediately. The company expects to provide enterprise technology and finance services after closing, with most transition services phased out during 2027.

Those arrangements create execution risk. Delays, added separation costs or weaker operating leverage after the services end could reduce the expected benefits of the portfolio change.

KFC and Taco Bell Must Lead YUM’s Next ChapterKFC delivered 7% unit growth and opened 660 gross new restaurants across 55 markets in the second quarter. Taco Bell generated 7% same-store sales growth and 19% operating profit growth, making both brands central to YUM’s post-separation outlook.

Domino’s Pizza, Inc. (DPZ - Free Report) offers a useful industry comparison because its largely franchised model also relies on brand strength, digital ordering and restaurant-level execution. For YUM, sustained comparable sales, franchisee economics and digital engagement will determine whether a streamlined portfolio produces better earnings quality.

YUM’s Scores Suggest Waiting for Deal ProgressThe Pizza Hut exit could improve YUM’s focus and capital allocation, but the benefits remain partly dependent on transaction completion and post-close execution. That balance supports monitoring deal progress rather than treating the announced sale as a fully realized catalyst.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of C is accompanied by a Value Score of D, Momentum Score of F and VGM Score of D. The Hold rank supports a measured stance, while the weaker Value, Momentum and combined VGM readings indicate that the stock does not currently offer a broadly favorable style profile.

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

Key Takeaways CNO beat Q2 earnings estimates as higher collected premiums and net investment income boosted results.CNO raised its 2026 operating EPS outlook to $4.60-$4.80 while reaffirming excess cash flow guidance.CNO returned $76.8 million via buybacks and dividends, with $300.4 million repurchase capacity remaining. CNO Financial Group, Inc. (CNO - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $1.26, which beat the Zacks Consensus Estimate by 27.3%. The bottom line rose from 87 cents a year ago.

Operating revenues of $1.3 billion advanced 13% year over year. The top line surpassed the consensus mark by 32%.

The strong quarterly results were supported by strong collected premiums from annuity, life and health products along with a notable rise in net investment income. Nevertheless, the upside was partly offset by a rise in total benefits and expenses as a result of higher insurance policy benefits.

CNO's Q2 PerformanceTotal insurance policy income rose 4.5% year over year to $680.7 million, higher than the Zacks Consensus Estimate of $660 million. The metric was aided by improved collected premiums from annuity, life and health products.

Net investment income was $597 million, which improved from the year-ago period of $483.7 million. General account assets grew 8.9% year over year to $411.9 million. Policyholder and other special-purpose portfolios totaled $185.1 million compared with the prior-year quarter’s $105.4 million.

Fee revenues and other income declined 36.4% year over year to $22.2 million.

Annuity collected premiums of $536 million rose 3% year over year, while health collected premiums increased 5.5% to $432 million. Collected premiums from life products totaled $249.3 million, which rose 1.5% year over year. The total collected premiums advanced 3.6% year over year to $1.2 billion.

New annualized premiums for health products rose 18.2% year over year, while the same for life products declined 3.8%. Annuity, Health and Life products accounted for 21.7%, 52.8% and 25.5%, respectively, of CNO's insurance margin.

Total benefits and expenses rose 8.9% year over year to $1.1 billion due to higher insurance policy benefits.

CNO’s Financial Update (As of June 30, 2026)CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $1.3 billion, which rose 68.4% from the 2025-end level.

Total assets of $39.9 billion rose 6.8% from the figure at 2025-end.

The debt-to-capital was 34% at the second-quarter end, which deteriorated 40 basis points (bps) from the 2025-end figure.

Total shareholders’ equity declined 1.8% from the 2025-end level to $2.6 billion.

Book value per common share was $27.96, which increased 0.1% from the figure at 2025-end.

Operating return on equity, excluding significant items, improved 190 bps year over year to 13.1% at the second-quarter end.

CNO Financial’s Share Repurchase & Dividend UpdateCNO Financial rewarded its shareholders with $60 million in the form of share buybacks and $16.8 million in dividends during the second quarter.

As of June 30, 2026, the company had a leftover repurchase capacity of $300.4 million.

CNO Revises 2026 GuidanceCNO Financial raised its full-year 2026 guidance, indicating confidence in the current operating trajectory. The company now expects operating EPS to be in the range of $4.60-$4.80, up from the previously guided range of $4.25-$4.45. The mid-point of which now indicates a 6.8% increase from the 2025 reported figure of $4.40.

For 2026, management still anticipates excess cash flow of $200-$250 million to the holding company.

The company now projects the expense ratio to be in the band of 18.8-19% for 2026. It estimates the effective tax rate to be around 21.5%. Management still aims to achieve leverage within the band of 25-28%.

CNO’s Zacks RankCNO currently has a Zacks Rank #4 (Sell).

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

How Did Peers Perform?Here are some stocks from the broader finance space that have also reported their quarterly results: RenaissanceRe Holdings Ltd. (RNR - Free Report) , Aon plc (AON - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) . Here's how they have performed:

RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%.  The bottom line also improved 5.1% year over year. Total operating revenues declined 6.7% year over year to $2.64 billion. The quarterly earnings benefited from lower expenses, higher net investment income and an improved total combined ratio. However, RNR’s upside was partly offset by lower net premiums earned, weaker underwriting results in the Casualty & Specialty segment and lower fee income.

Aon reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year. Total revenues of $4.2 billion grew 2% year over year. AON’s quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions.

Hartford delivered second-quarter fiscal 2026 earnings per share of $3.42, up 6% year over year and above the Zacks Consensus Estimate of $3.12 by 9.6%. Revenues came in at $5.23 billion, which improved 6.8% year over year. HIG’s quarterly results benefited from higher investment income, premium growth in Business Insurance and improving Personal Insurance profitability. Strong new business expansion in Small Business and favorable pricing trends supported results. However, the upside was partly offset by an increased expense level, higher catastrophe losses and weaker Employee Benefits profitability.

Key Takeaways IQV leverages proprietary data & analytics to strengthen its competitive position across healthcare markets.IQV grew R&D and Commercial Solutions revenue, supported by AI adoption and broad customer demand.IQV generates strong cash flow, but high debt and weak liquidity temper the long-term investment case. IQVIA Holdings Inc. (IQV - Free Report) is benefiting from stronger demand across clinical research and commercial services, supported by data assets that are difficult to replicate.

The investment case is less straightforward on the balance sheet. High debt, limited short-term liquidity and continued buybacks raise the financial risk, leaving investors to weigh durable competitive advantages against leverage and pricing pressure.

IQVIA’s Data Advantage Supports Long-Term GrowthIQVIA’s information platform includes roughly 61 petabytes of proprietary data and more than one billion non-identified patient records. Its healthcare-focused technology infrastructure and analytics capabilities allow customers to connect clinical, commercial and real-world information at scale.

That resource base serves more than 10,000 clients and creates a meaningful barrier to entry. Competitors can build software or research capacity, but matching the breadth of IQVIA’s data, industry expertise and established customer relationships would require substantial time and investment.

IQVIA’s Growth Engines Continue to ExpandResearch & Development Solutions revenues increased 8.8% year over year in the second quarter, while Commercial Solutions revenues rose 8.6%. Growth was broad-based, with patient solutions, commercial engagement, analytics and consulting contributing alongside increased adoption of artificial intelligence tools.

Those businesses address a market estimated at more than $330 billion. ICON plc (ICLR - Free Report) and Medpace Holdings Inc. (MEDP - Free Report) also reported positive second-quarter booking and revenue trends, underscoring healthy demand for outsourced clinical-development services while keeping competitive pressure in focus.

IQVIA’s Cash Flow Funds Heavy BuybacksSecond-quarter operating cash flow increased 26% to $558 million, while free cash flow rose 23.3% to $360 million. That cash generation gives IQVIA flexibility to invest in technology, acquisitions and shareholder returns.

IQVIA repurchased $398 million of stock during the quarter and $950 million in the first half of 2026. The company retained $2.82 billion of authorization at June 30, but the pace of future repurchases will depend on cash generation and other capital-allocation priorities.

IQVIA’s Debt and Liquidity Raise CautionDebt totaled about $16 billion at the end of the second quarter, with net debt of $14.09 billion. The net leverage ratio stood at 3.59 times trailing adjusted EBITDA, leaving the company exposed to interest costs and limiting room for operating setbacks.

The current ratio was about 0.71, below the cited industry level, as current assets of $6.23 billion trailed current liabilities of $8.82 billion. IQVIA does not currently plan to pay a dividend, so shareholder returns remain tied mainly to price appreciation and repurchases.

                                                                          Image Source: Zacks Investment Research

IQVIA’s Valuation Offers a Mixed SignalIQVIA trades at 13.02X trailing enterprise value to EBITDA. That is below its five-year median and the cited sub-industry multiple, but above the broader medical-sector comparison.

                                                                    Image Source: Zacks Investment Research

                                                                    Image Source: Zacks Investment Research

The discount to its historical valuation may look reasonable, yet it does not eliminate the leverage risk. Pricing pressure, backlog-conversion timing and recent share appreciation could make additional gains more dependent on sustained earnings and cash-flow execution.

IQVIA’s Hold Signal Fits the Trade-OffIQVIA’s data scale, diversified client base and improving segment growth support the long-term case. High leverage and weak short-term liquidity argue against treating those advantages as a reason for an aggressive entry at any price.

The stock currently carries a Zacks Rank #3 (Hold), which supports patience rather than a forceful buy call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IQV’s Value Score of B and VGM Score of B are constructive, while a Growth Score of C and Momentum Score of C point to a more balanced near-term profile.

The combination fits the broader trade-off. IQVIA has improving fundamentals and valuable assets, but investors may prefer to wait for continued debt management, cash-flow progress or a more favorable entry point before taking a larger position.

Key Takeaways Post Holdings likely benefited from resilient demand for value-added egg products despite lower egg prices.POST's Nutrish relaunch may have supported brand momentum through updated packaging, pricing and positioning.POST likely saw impact from higher manufacturing costs and weaker 9Lives performance. Post Holdings, Inc. (POST - Free Report) is set to unveil its third-quarter fiscal 2026 results on Aug. 6, after market close. Investors are eager to see if the company can beat market expectations.

The Zacks Consensus Estimate for revenues is pegged at $2 billion, implying 1.8% growth from the prior year.

Meanwhile, the consensus mark for earnings per share has been unchanged at $1.63 in the past seven days, suggesting a 19.7% decline from the year-ago period. POST has a trailing four-quarter earnings surprise of 19.3%, on average.

Key Factors to Observe for POST's Q3 EarningsPost Holdings saw resilient demand for value-added egg products, which might have supported the company’s performance in the quarter. Despite lower egg prices, customers, particularly larger foodservice operators, might have continued to value the labor savings, product consistency and food safety benefits offered by prepared egg products. This sticky customer adoption is likely to have helped sustain demand, while the relatively limited exposure to smaller independent operators may have reduced the risk of meaningful volume pressure.

The Nutrish brand relaunch is also expected to have supported performance in the to-be-reported quarter as the refreshed positioning, updated packaging and revised pricing continued to roll out across the market, particularly in the food channel. In the second quarter earnings call transcript, management highlighted encouraging early results at a major retailer where the rollout was complete, suggesting improving consumer reception. The relaunch is likely to have contributed to strengthening brand momentum in the fiscal third quarter.

That said, elevated manufacturing costs are likely to have remained a headwind in the to-be-reported quarter. Management had previously indicated that production-related expenses were running higher. These higher-than-expected manufacturing costs might have weighed on overall cost efficiency and profitability.

The 9Lives brand is likely to have continued to face headwinds in the quarter following earlier pricing actions across a portion of its functional product portfolio. Management had previously indicated that these price increases resulted in higher-than-expected consumer demand elasticity, contributing to softer sales trends. In addition, the loss of shelf placement with certain retail customers might have continued to pressure the brand's market presence and overall performance. These factors are likely to have remained a drag on the company's results in the quarter.

What the Zacks Model Says About POST’s Q3 EarningsOur proven model does not conclusively predict an earnings beat for POST this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.

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

Stocks With Favorable CombinationHere are three companies you may also want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.82% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2026 earnings per share is pegged at 53 cents, implying a 23.2% year-over-year decline. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which indicates a decrease of 3% from the figure reported in the prior-year quarter. KHC has a trailing four-quarter earnings surprise of 10.2%, on average.

US Foods Holding Corp. (USFD - Free Report) currently has an Earnings ESP of +1.10% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings per share is pegged at $1.37, implying a 15.1% year-over-year decline.

The Zacks Consensus Estimate for quarterly revenues is pegged at $10.5 billion, which indicates growth of 3.8% from the figure reported in the prior-year quarter. USFD has a trailing four-quarter earnings surprise of 1.4%, on average.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings per share is pegged at $1.51, implying a 2% year-over-year increase.

The Zacks Consensus Estimate for quarterly revenues is pegged at $21.9 billion, which indicates an increase of 3.7% from the figure reported in the prior-year quarter. SYY has a trailing four-quarter earnings surprise of 2.1%, on average.

Opendoor Technologies shares are powering higher. Why is OPEN stock up today? Opendoor Steps Into Q2 Earnings With a Profitability Milestone in ReachThe Street is looking for a loss of 7 cents per share against revenue of $666.54 million when the company reports after the bell, figures that would represent a meaningful step forward from where the business stood three months ago.

Opendoor Guidance: What Management Set Up in Q2When first-quarter results were released in May, management projected roughly 25% sequential revenue growth for the second quarter, a target that would land the outcome close to the current consensus. Equally important, the company projected adjusted EBITDA would reach breakeven territory for the quarter, a level that would mark the first time in recent memory Opendoor has achieved that threshold on a quarterly basis.

CEO Kaz Nejatian had said the company expects to sustain adjusted EBITDA profitability on a rolling 12-month basis beginning with the second quarter, a commitment that investors have likely been watching closely.

The first quarter provided a credible platform for those expectations. Revenue of $720 million came with a gross margin of 10%, a meaningful improvement from the 8.6% recorded in the comparable period a year earlier. Acquisition contracts crossed 5,000 during the quarter, twice the volume from the fourth quarter and the strongest showing since 2022, while the number of homes purchased expanded 45% from the prior period.

The Chart Says "Bounce," The Trend Says "Prove It"OPEN is trying to rebound, but it is doing so from a technically weak position. The stock is still below all major moving averages: 3% under the 20‑day, 7.6% under the 50‑day, 11.8% under the 100‑day and 24.5% under the 200‑day. Until it can reclaim the 50‑day area and hold it, any strength looks more like a short‑term pop than a real trend change.

RSI at 47.85 is neutral, which fits a stock trying to stabilize rather than break out. The moving‑average structure still leans bearish with the 20‑day below the 50‑day and the March death cross shaping the broader trend.

Key resistance: $4.51 — This is the first test for any rebound because it aligns with the 50‑day zone where sellers have stepped in before. Key support: $4.18 — This is the nearest floor buyers have defended. If it breaks, momentum can fade quickly in a stock that still needs to rebuild technical credibility. OPEN Shares Are Moving HigherOPEN Price Action: Opendoor shares were up 5.84% at $4.17 at the time of publication on Tuesday, according to Benzinga Pro.

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Key Takeaways Baker Hughes adds thermal, compression, carbon-capture and lifecycle-service capabilities through Chart.BKR targets $325 million in annual run-rate cost synergies by year three across nearly 300 initiatives.Baker Hughes' long-term debt rose to $15.48 billion, raising the stakes for integration and deleveraging. Baker Hughes Company (BKR - Free Report) completed its all-cash acquisition of Chart Industries in July 2026, adding a broader industrial technology platform and creating a third reporting segment. The deal expands Baker Hughes beyond traditional oilfield markets and increases its exposure to energy infrastructure and industrial applications.

The strategic case centers on a larger installed base, more recurring lifecycle revenues and sizable cost savings. The trade-off is higher leverage and a demanding integration program that must deliver on schedule.

BKR Adds a Broader Industrial Technology PlatformChart adds thermal management, air and gas handling, compression, carbon-capture and lifecycle-service capabilities. These technologies strengthen Baker Hughes’ position in gas infrastructure, industrial markets, data centers, geothermal and carbon capture.

The acquisition also broadens the company’s competitive frame. SLB (SLB - Free Report) is expanding digital, production and data-center infrastructure capabilities, while NVIDIA Corporation (NVDA - Free Report) is developing AI-factory systems that require coordinated power, cooling and control infrastructure. Chart gives Baker Hughes a wider set of tools for serving those converging markets.

Baker Hughes Targets Meaningful Cost SynergiesManagement expects annual run-rate cost synergies of $95 million in year one, $230 million in year two and $325 million in year three. The largest opportunities are expected from selling, general and administrative optimization, supply-chain efficiencies and facility optimization.

Execution will depend on eliminating duplicative costs, consolidating support functions and systems, capturing purchasing-scale benefits and improving manufacturing utilization. Baker Hughes has identified nearly 300 initiatives across procurement, corporate costs, systems, operations and footprint optimization.

BKR Sees New Aftermarket and Digital OpportunitiesThe combined installed base could expand aftermarket services, digital penetration and recurring lifecycle revenues. Baker Hughes plans to use its global service network to increase Chart’s aftermarket coverage and introduce iCenter, Cordant and Uptime solutions across the acquired base.

Cross-selling may add commercial upside beyond the stated cost targets. The company sees opportunities to combine its power-generation and liquefaction capabilities with Chart’s thermal management, cryogenic storage, gas handling and carbon-capture technologies.

Image Source: Baker Hughes Company

Baker Hughes Takes on Higher Financial RiskThe transaction materially increased balance-sheet risk. Baker Hughes issued $9.9 billion of long-term debt during the first half of 2026, and long-term debt reached $15.48 billion at June 30, compared with $5.40 billion at the end of 2025.

Management is prioritizing deleveraging and targets net debt to adjusted EBITDA of 1.0-1.5 times within 24 months of closing. Near-term capital returns may remain constrained as the company builds cash balances, reduces leverage and integrates Chart.

BKR’s Integration Timeline Becomes the Key TestThe acquisition is being managed through 18 integration workstreams. During the first 90 days, Baker Hughes is focusing on customer continuity, employee retention, operating performance and early synergy actions. The next phase emphasizes operating-model alignment, commercial integration and pilot customer solutions.

Chart will become Baker Hughes’ third reporting segment beginning in the third quarter of 2026. Delays in procurement savings, systems integration or aftermarket expansion could slow synergy capture, weaken financial flexibility and postpone a return to more substantial share repurchases.

Baker Hughes Signals Reward Execution DisciplineThe Chart deal gives Baker Hughes a broader growth platform, but the investment case now depends more heavily on integration discipline and debt reduction. Successful execution could improve the durability of earnings and cash flow, while delays would magnify the financial risk created by the all-cash transaction.

BKR currently carries a Zacks Rank #3 (Hold). Its Growth Score of B and Momentum Score of A point to favorable growth and price-trend characteristics, while its Value Score of C is more neutral. The VGM Score of B reflects a constructive overall style profile, but the Zacks Rank suggests a balanced near-term outlook rather than a clear directional signal. 

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

Key Takeaways Boot Barn ended Q1 fiscal 2027 with 566 stores and targets about 1,200 U.S. locations over time.BOOT expects fiscal 2027 sales growth of 14%-16% and EPS growth of 26%, supported by expansion.Boot Barn saw same-store sales rise 4.7%, while tariff refunds provided near-term margin support. Boot Barn Holdings, Inc. (BOOT - Free Report) continues to gain from store expansion, healthy comparable sales and rising earnings expectations, but investors must weigh those positives against near-term margin uncertainty, softer July traffic and the fading benefit from tariff refunds.

The investment case centers on whether Boot Barn’s long-term growth opportunity, supported by store whitespace and improving operating execution, can justify the valuation despite temporary earnings tailwinds. Management expects fiscal 2027 sales growth of 14% to 16% and earnings per share growth of 26%, while investors remain focused on how much margin expansion can continue after tariff-related benefits roll off.

BOOT's Store Runway Supports Durable GrowthBoot Barn’s store expansion remains a key driver of its long-term growth strategy. The company ended the first quarter of fiscal 2027 with 566 stores across 49 states after opening 27 locations during the quarter. Management continues to target approximately 1,200 U.S. stores over time, leaving significant room for geographic expansion.

The economics of new stores remain attractive. New locations are expected to generate roughly $3.2 million in first-year sales, require about $1.7 million of total net investment and deliver a payback period of approximately 1.8 years. Management also noted that new stores continue to perform ahead of expectations across the country.

With 70 new store openings planned for fiscal 2027, expansion should remain an important contributor to revenue growth. The company’s fiscal 2027 sales outlook of $2.58 billion to $2.63 billion reflects continued contributions from the expanding footprint.

Boot Barn's Comps Show Broad-Based DemandBoot Barn’s recent sales trends suggest growth is not dependent on store openings alone. First-quarter fiscal 2027 consolidated same-store sales increased 4.7%, including a 3.8% gain in retail store same-store sales and a 13.4% increase in e-commerce same-store sales.

The company benefited from broad category demand. Men’s Western boots posted mid-single-digit growth, men’s and women’s apparel increased at a high-single-digit pace led by denim, and work boots delivered high-single-digit growth for the fifth consecutive quarter. This category diversity reduces reliance on any single merchandise group.

Boot Barn’s omnichannel model is also supporting customer engagement. E-commerce growth was driven by double-digit gains at BootBarn.com, while store-based fulfillment helped expand inventory access and improve the shopping experience across digital and physical channels.

BOOT's Margin Gains Face Temporary TailwindsMargin improvement remains a key earnings driver, although investors need to separate structural gains from temporary benefits. First-quarter merchandise margin expanded 220 basis points, helped by 250 basis points from tariff refunds and 60 basis points of product-margin expansion, partly offset by freight pressures.

Excluding tariff refunds, product margin improved because of better buying economies of scale, discounted inventory purchases, stronger full-price selling and improved assortment execution. Management expects fiscal 2027 merchandise margin to expand approximately 60 basis points excluding refunds.

However, tariff refunds will not provide the same level of support throughout the year. The first quarter included a $14.7 million tariff refund benefit, contributing 38 cents to earnings per share. For fiscal 2027, management expects tariff refunds to add $17.8 million to merchandise margin and approximately 46 cents to earnings per share, with the benefit declining sharply after the first quarter.

At the same time, occupancy costs tied to new-store growth remain a near-term pressure point. Buying, occupancy and distribution center costs deleveraged by 90 basis points in the first quarter, primarily due to expenses associated with store expansion.

Boot Barn's Valuation Balances Growth and RiskBOOT’s valuation reflects expectations for continued earnings growth. The stock trades at a forward P/E multiple of 17.6X, while the company is expected to deliver double-digit sales growth and earnings growth above 20% in fiscal 2027.

Compared with broader apparel and footwear companies such as Levi Strauss & Co. (LEVI - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) , Boot Barn’s valuation reflects expectations for faster growth, supported by its store expansion opportunity, comparable sales momentum and focus on western and workwear categories.

Management’s outlook calls for fiscal 2027 earnings per share of $9.23, representing 26% growth, supported by merchandise margin expansion, SG&A leverage and continued sales growth.

The valuation debate depends on whether investors view Boot Barn as a retailer with a long runway for expansion or a business facing near-term normalization after unusually favorable margin conditions. Store growth, category momentum and estimate revisions support a premium valuation, while slower traffic trends and temporary tariff benefits could limit upside if execution weakens.

Image Source: Zacks Investment Research

BOOT's Signals Favor Selective OptimismBoot Barn’s Zacks indicators remain favorable. The stock currently carries a Zacks Rank #1 (Strong Buy), with a VGM Score of B, Value Score of B, Growth Score of B and Momentum Score of C. The lower Momentum Score of C indicates that recent share-price trends have been less supportive than the company’s fundamental outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The favorable Zacks Rank reflects improving earnings expectations, while the Style Scores provide additional insight into the stock’s valuation, growth characteristics and recent price trends. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum factors that can influence stock performance.

For BOOT, the combination of estimate revisions, store expansion and operating momentum supports a constructive view. Still, investors should monitor comparable sales trends, margin performance after tariff refunds fade and the pace of exclusive-brand growth. The company’s growth profile remains attractive, but near-term execution will determine whether the valuation continues to hold.

Key Takeaways Murphy Oil is expected to post Q2 revenues of $871M and EPS of $1.51, both up sharply year over year.Q2 production is projected at 161,000-169,000 Boep/d, with 94,300 Boep/d from domestic operations.Six Eagle Ford wells and four Kaybob Duvernay wells were planned to come online and support earnings. Murphy Oil Corporation (MUR - Free Report) is expected to report a year-over-year increase in both top and bottom lines when it reports second-quarter 2026 results on Aug. 5, after market close.

The Zacks Consensus Estimate for revenues is pinned at $871 million, indicating an increase of 25.33% from the year-ago reported figure. The consensus mark for earnings is pegged at $1.51 per share, indicating a massive year-over-year growth of 459.26%. The bottom-line estimate has gone up 36.04% over the past 60 days.

Image Source: Zacks Investment Research

What the Zacks Model UnveilsOur model predicts an earnings beat for MUR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here, as you can see below.

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

Earnings ESP: MUR has an Earnings ESP of +0.25%.

Zacks Rank: Murphy Oil currently holds a Zacks Rank #3.

Earnings Surprise by Others This SeasonSome other companies in the same sector also have the right combination of the two factors for an earnings beat this season are Calumet, Inc. (CLMT - Free Report) , Western Midstream Partners (WES - Free Report) and National Energy Services Reunited Corp. (NESR - Free Report) . CLMT, WES and NESR have an Earnings ESP of +169.57%, +0.33% and +7.80%, respectively and currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Major Drivers Behind MUR’s Q2 Earnings PerformanceMurphy Oil’s second-quarter total production (excluding NCI) is expected to be in the range of 161,000-169,000 barrels of oil equivalents per day (Boep/d). Nearly 94,300 Boep/d will come from Murphy Oil’s domestic operation in the Gulf of America and Eagle Ford shale.

Murphy Oil does not have any direct exposure to crude in the Middle East, which is likely to have allowed it to keep the volumes steady during the second quarter.

The company’s plan to bring 6 wells online in the Eagle Ford Shale and 4 wells in Kaybob Duvernay is expected to have an impact on second-quarter earnings.

Cipher Digital Inc. (CIFR) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Courtney Knight - Head of Investor Relations
Rodney Page - CEO & Director
Greg Mumford - Chief Financial Officer

Conference Call Participants

Stephen Byrd - Morgan Stanley, Research Division
Paul Golding - Macquarie Research
Bill Papanastasiou - Chardan Capital Markets, LLC, Research Division
Richard Choe - JPMorgan Chase & Co, Research Division
Jonathan Petersen - Jefferies LLC, Research Division
Michael Colonnese - H.C. Wainwright & Co, LLC, Research Division
Christopher Brendler - Rosenblatt Securities Inc., Research Division
Michael Chen - Needham & Company, LLC, Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Cipher Digital's Second Quarter 2026 Business Update Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Courtney Knight, Head of Investor Relations. Please go ahead.

Courtney Knight
Head of Investor Relations

Good morning, and thank you for joining us on this conference call to address Cipher Digital's business update for the second quarter of 2026. Joining me on the call today are Tyler Page, Chief Executive Officer; and Greg Mumford, Chief Financial Officer.

Please note that our press release and presentation can be found on the Investor Relations section of the company's website, where this conference call will also be simultaneously webcast. Please also note that this conference call is the property of Cipher Digital, and any taping or other reproduction is expressly prohibited without prior consent.

Before we start, I'd like to remind you that the following discussion as well as our press release and presentation contain forward-looking statements. These statements include, but are not limited to, Cipher's financial outlook, business plans and objectives and other future events and developments, including statements about the market potential of our business operations, potential competition and our goals

Key Takeaways Fluence Energy is expected to post a 5-cent loss on $761.9 million in fiscal Q3 revenues.Record backlog and nearly $2 billion in orders may support Fluence Energy's storage growth.Fluence Energy's services base expanded, while a weaker digital pipeline may have limited growth. Fluence Energy (FLNC - Free Report) is set to release fiscal third-quarter 2026 results on Aug. 5. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 5 cents on revenues of $761.9 million.

Let’s delve into the factors that might have influenced the clean energy company’s results in the September quarter. But it’s worth taking a look at FLNC’s previous-quarter performance first.

Highlights of Q2 Earnings & Surprise HistoryIn the last reported quarter, the Arlington, VA-basedprovider of battery energy storage systems, software and services for renewable and grid applications beat the consensus mark, backed by disciplined execution across projects and supply-chain operations.

FLNC had reported a loss per share of 16 cents, 2 cents narrower than the Zacks Consensus Estimate. However, revenues of $464.9 million came in 21.7% below the Zacks Consensus Estimate after roughly $80 million of shipments slipped into the third quarter because of customs delays in Vietnam and loading-equipment shortages in Spain.

Fluence Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters, met in one and missed in the other. This is depicted in the graph below:

Trend in Estimate RevisionThe Zacks Consensus Estimate for the fiscal third-quarter bottom line has remained unchanged over the past seven days. The estimated figure indicates a 600% decline year over year. The Zacks Consensus Estimate for revenues, however, suggests a 26.4% increase from the year-ago period.

Factors to ConsiderFluence's Energy Storage Products & Solutions business is likely to have been the primary growth driver in fiscal third-quarter 2026. Management reported order intake of nearly $2 billion through May 6, including more than $600 million booked during the third quarter to date, while backlog reached a record $5.6 billion. The company also reaffirmed fiscal 2026 revenue guidance of $3.2-$3.6 billion and indicated that production remained on plan, with roughly 70% of annual revenues expected in the second half. These factors could lift segment revenues. The Zacks Consensus Estimate for this segment's revenues is $636 million, above the year-ago sales of $584 million.

Fluence Energy's Services business is likely to have provided another source of support for fiscal third-quarter results through its expanding recurring revenue base. Assets under management increased to 6.3 GW, while contracted backlog rose 10% to 7.7 GW and the pipeline expanded 15% to 33.7 GW. A larger installed base generally supports higher maintenance and operational service activity, which could have contributed to revenue stability. The Zacks Consensus Estimate for Services revenues stands at $27.2 million compared to $16.9 million a year ago.

Fluence's Digital Applications & Solutions business is likely to have remained a modest headwind during the fiscal third quarter. Although contracted backlog improved 19% to 14.4 GW, the digital pipeline declined 16% to 53.5 GW, pointing to slower growth in future software opportunities. That softer pipeline could limit near-term revenue conversion and weigh on the segment's performance.

What Does Our Model Say?The proven Zacks model does not conclusively show that Fluence Energy is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

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

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -68.75%.

Zacks Rank: FLNC currently carries a Zacks Rank of 2.

Stocks to ConsiderWhile an earnings beat looks uncertain for Fluence Energy, here are some firms that you may want to consider on the basis of our model:

Calumet, Inc. (CLMT - Free Report) has an Earnings ESP of +169.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 7.

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

The Zacks Consensus Estimate for 2026 sales of Calumet indicates 6.3% growth. Valued at around $3.9 billion, CLMT has gained 173.2% in a year.

Alpha Cognition Inc. (ACOG - Free Report) has an Earnings ESP of +6.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 13.

The Zacks Consensus Estimate for 2026 sales of Alpha Cognition indicates 118.9% growth. Valued at around $180.3 million, ACOG is down 7.3% in a year.

Sky Harbour Group Corporation (SKYH - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 12.

Sky Harbour beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 84.8%. Valued at around $818.9 million, SKYH has gained 11.5% in a year.

Whirlpool Corporation (WHR) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Scott Cartwright - Head of Investor Relations
Marc Bitzer - Chairman & CEO
Juan Puente - Executive President of North America & Global Strategic Sourcing
Ludovic Beaufils - Executive President of KitchenAid Small Appliances, Latin America, Global Information Tech. & Design
Roxanne Warner - Executive VP & CFO

Conference Call Participants

David S. MacGregor - Longbow Research LLC
Sam Darkatsh - Raymond James & Associates, Inc., Research Division
Michael Dahl - RBC Capital Markets, Research Division
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Eric Bosshard - Cleveland Research Company LLC
Shaun Calnan - BofA Securities, Research Division
Edward Magi - BNP Paribas, Research Division
Jeffrey Stevenson - Loop Capital Markets LLC, Research Division

Presentation

Scott Cartwright
Head of Investor Relations

Good morning, and welcome to Whirlpool Corporation's Second Quarter 2026 Earnings Call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Roxanne Warner, our Chief Financial Officer; Juan Carlos Puente, our Executive President of North America and Global Strategic Sourcing; and Ludovic Beaufils, our Executive President of KitchenAid Small Appliances and Latin America.

Our remarks today track with a presentation available on our Investors section of our website at whirlpoolcorp.com. Before we begin, I want to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q, and other periodic reports.

We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe that these measures are important indicators of our operations as they exclude items that may not be

Jackson Financial Inc. (JXN) Q2 2026 Earnings Call August 4, 2026 10:00 AM EDT

Company Participants

Elizabeth Werner - Head of Investor Relations
Laura Prieskorn - CEO, President & Director
Don Cummings - Executive VP & CFO
Christopher Raub - EVP & President of Jackson National Life Insurance Company
Brian Walta - Senior Vice President

Conference Call Participants

Suneet Kamath - Jefferies LLC, Research Division
Taylor Scott - Barclays Bank PLC, Research Division
Thomas Gallagher - Evercore ISI Institutional Equities, Research Division
Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Operator

Good day, everyone. Welcome to the Jackson Financial Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded. If you have any objections, please disconnect at this time. I would now like to turn the call over to Liz Werner, Head of Investor Relations. Please go ahead.

Elizabeth Werner
Head of Investor Relations

Good morning, everyone, and welcome to Jackson's 2026 Second Quarter Earnings Call. Today's remarks may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events. Jackson's filings with the SEC provide details on important factors that may cause actual results or events to differ materially, except as required by law, Jackson is under no obligation to update any forward-looking statements. Today's remarks also refer to certain non-GAAP financial measures. The reconciliation of those measures to the most comparable U.S. GAAP figures is included in our earnings release, financial supplement and earnings presentation, all of which are available on the Investor Relations page of our website at investors.jackson.com.

Presenting on today's call are Jackson CEO, Laura Prieskorn; and CFO, Don Cummings; joining us in the room are our President of PPM America, our investment management subsidiary, Chris Raub; our Head of Planning and Asset Liability Management, Brian Walta; and our Head of Distribution of Jackson

Dorman Products, Inc. (DORM) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Alexander Whitelam
Kevin Olsen - Chairman, President & CEO
Charles Rayfield - Senior VP & Chief Financial Officer

Conference Call Participants

Scott Stember - ROTH Capital Partners, LLC, Research Division
Jeffrey Lick - Stephens Inc., Research Division
David Lantz - Wells Fargo Securities, LLC, Research Division
Bret Jordan - Jefferies LLC, Research Division
Tristan Thomas-Martin - BMO Capital Markets Equity Research

Presentation

Operator

Good morning. My name is Nikki, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dorman Products Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I will now turn the call over to Alex Whitelam, Vice President of Investor Relations. Please go ahead.

Alexander Whitelam

Thank you. Good morning, everyone. Welcome to Dorman's Second Quarter 2026 Earnings Conference Call. I'm joined by Kevin Olsen, Dorman's Chairman, President and Chief Executive Officer; and Charles Rayfield, Dorman's Chief Financial Officer. Kevin will begin with a high-level overview of the quarter and current business environment, along with our segment level performance and market trends. Charles will walk through our second quarter financial results in more detail, discuss cash flow and capital allocation as well as our updated guidance before turning it back to Kevin for closing remarks. After that, we'll open the call for questions.

By now, everyone should have access to our earnings release and earnings call presentation, which are available on our website at investors.dormanproducts.com. Before we begin, I would like to remind everyone that our prepared remarks, earnings release and investor presentation include forward-looking statements within the meaning of federal securities laws. We advise listeners to review the risk factors and cautionary statements in our most recent 10-Q, 10-K and

Key Takeaways Clean Harbors beat Q2 estimates as earnings rose 36.4% and revenues increased 12%. Higher disposal volumes, project work and re-refined product prices lifted profitability. Clean Harbors raised 2026 EBITDA guidance and won a 10-year, $600 million disposal contract. Clean Harbors, Inc. (CLH - Free Report) reported better-than-expected second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.

The earnings beat failed to impress the market, as the stock has dipped 4.7% since the release of the results on July 29.

CLH posted earnings of $3.22 per share, beating the consensus estimate of $2.74 by 17.5%. Revenues came in at $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%.

Earnings increased 36.4% year over year, while revenues rose 12%. The strong results reflected healthy disposal and recycling volumes, remediation and PFAS-related projects, strategic pricing initiatives and favorable market prices for re-refined products.

CLH’s Profitability Improves on Broad-Based GrowthClean Harbors generated net income of $170.5 million, up 34.3% from $126.9 million in the year-ago quarter.

Income from operations increased 27.9% year over year to $268.9 million. Gross profit rose 17.9% to $608.8 million, while the gross margin expanded to 35.1% from 33.3% a year earlier.

Adjusted EBITDA climbed 21.6% to $409 million. The adjusted EBITDA margin expanded 190 basis points to 23.6%, supported by stronger results across both operating segments. The company also maintained solid safety performance, with a year-to-date Total Recordable Incident Rate of 0.46.

Selling, general and administrative expenses increased to $214.6 million from $186.2 million. Higher incentive compensation, insurance expenses, acquisition-related costs and strategic investments contributed to the increase.

Clean Harbors’ ES Segment Gains From Disposal DemandEnvironmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter. Segment adjusted EBITDA increased 8% to $406.1 million, while the adjusted EBITDA margin improved 10 basis points to 27.9%.

Technical Services revenues rose 18%, driven by healthy demand for disposal and recycling services, project activity and acquisitions. A large-scale event contributed approximately $30 million to Technical Services revenues during the quarter.

Incinerator utilization, including the new Kimball facility, increased to 91% from 86% a year earlier. The improvement reflected strength in the base business and project volumes. Landfill volumes jumped 7% on continued project wins.

Safety-Kleen Environmental Services revenues advanced 11%, aided by pricing and higher volumes in containerized waste collection and vacuum services. Field Services revenues rose 3% despite a difficult year-over-year comparison that included major emergency-response projects.

The segment has now delivered year-over-year adjusted EBITDA margin expansion for 17 consecutive quarters.

CLH’s SKSS Business Benefits From Higher PricingSafety-Kleen Sustainability Solutions revenues surged 40.8% year over year to $278.4 million. The increase primarily resulted from a sharp rise in market prices for base and blended products amid global supply disruptions, along with higher charge-for-oil revenues.

Segment adjusted EBITDA jumped 142.8% to $93 million, while its margin expanded to 33.4% from 19.4% in the prior-year period. The supply-constrained environment widened the company’s re-refining spread and significantly strengthened profitability.

Clean Harbors collected 61 million gallons of waste oil compared with 64 million gallons a year earlier. Although collection volume declined, the company maintained a charge-for-oil rate that was considerably higher year over year.

Blended products represented 21% of total volumes sold, up from 19% a year ago and 16% in the first quarter. Direct blended sales increased to 11% of total volumes from 9% in the year-ago quarter, reflecting new customer wins and closed-loop arrangements.

The result significantly exceeded management’s expectations from the first-quarter earnings call, when it anticipated SKSS’ second-quarter growth to exceed 10% because of improving base oil prices.

Clean Harbors’ Cash Flow Remains HealthyCash provided by operating activities was $239.2 million, up from $208 million in the prior-year quarter. Adjusted free cash flow increased to $135.7 million from $133.2 million.

Capital expenditures, net of asset-sale proceeds, were $124 million compared with $87.3 million a year ago. Clean Harbors also repurchased $27.1 million of shares during the quarter, up from $12 million in the year-ago period.

The company ended June with $408.4 million in cash and cash equivalents and $108.4 million in short-term marketable securities. Its current and long-term debt totaled approximately $2.77 billion.

CLH Raises 2026 GuidanceFor the third quarter of 2026, Clean Harbors expects adjusted EBITDA to increase 24-28% year over year. Management anticipates continued strength across both operating segments, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products.

Following the strong first-half performance, the company raised the midpoint of its full-year adjusted EBITDA guidance by $110 million. Clean Harbors now expects adjusted EBITDA of $1.35-$1.41 billion, with a midpoint of $1.38 billion.

The company also increased the midpoint of its adjusted free cash flow outlook by $30 million. Adjusted free cash flow is now projected between $520 million and $580 million, with a midpoint of $550 million.

The outlook includes anticipated GAAP net income of $481-$531 million and net cash from operating activities of $890 million to $1.01 billion.

Clean Harbors carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings SnapshotWaste Connections, Inc. (WCN - Free Report) reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.

Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.

Equifax Inc. (EFX - Free Report) reported second-quarter 2026 adjusted earnings of $2.25 per share, up 12.5% year over year. The figure beat the Zacks Consensus Estimate of $2.21 by 1.8%.

Revenues increased 10.6% year over year to $1.7 billion and surpassed the consensus mark by a slight margin.

Imagine a company that reports eight straight quarters of 60% revenue growth, beats its earnings-per-share (EPS) estimates by 30%, and raises its next quarter guidance above Wall Street estimates. You might expect the stock to soar 20% following that release, right?

Well, that’s exactly what Reddit Inc. NYSE: RDDT reported to the market last week, and the stock didn’t gain 20%; it dropped 20% the following morning. The EPS and revenue figures masked a concerning decline in U.S. metrics, prompting a swift re-rating from both analysts and investors. Can Reddit stem this user deterioration without losing its monetization success?

Get Reddit alerts:

Headline Numbers Hide User Growth SlowdownReddit reported its Q2 2026 results on July 30 and beat EPS and revenue expectations in smashing fashion. Revenue grew 61% year-over-year (YOY) to a record $805 million, surpassing analysts’ consensus by nearly 10%. EPS of $1.25 also beat estimates by over 30%, and adjusted EBITDA margins reached 43%.

A clean top and bottom line beat, plus management forecasts another record quarter in Q3 with top-end revenue guidance of $870 million and 45% adjusted EBITDA margins.

Reddit Today

$160.08 +5.37 (+3.47%)

As of 02:42 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$119.27▼

$282.95P/E Ratio37.22

Price Target$220.90

The numbers under the hood also looked impressive. Advertising revenue jumped 64% to $762 million, and the number of global daily active unique users (DAUq) grew to 130.3 million, representing YOY growth of 18%. Operating cash flow also surpassed $1 billion on a trailing 12-month basis for the first time ever. And yet the stock dropped 22% following the report, so in the words of Ted Lasso: "Why the decline, Frankenstein?”

The key metric wasn’t global unique users, but U.S. users, which dipped slightly to 53.2 million in Q2 from 53.5 million in Q1. Reddit (for now) splits its user base into two categories: logged-in and logged-out. Logged-in users are the ones who download the app, create accounts, post, get into meme wars, and engage in other activities that can be monetized. Logged-out users come from search traffic (e.g., Google) and typically read an article or a comment chain before moving on. And despite total U.S. users growing from 50.3 million to 53.2 million YOY, the logged-in user base is flat:

Q2 2025: 22.9M logged in

Q3 2025: 23.1M logged in

Q4 2025: 23.0M logged in

Q1 2026: 23.2M logged in

Q2 2026: 23.1M logged in

Logged-in users growth has plummeted to 1% YOY, which is not the direction a management team with aspirations for 100 million daily U.S. users wants to see the numbers turn. This is also the last quarter management will report the logged-in/logged-out split.

Daily User Monetization Quantifies Bull CaseThe decision to retire the differentiated metrics might seem curious considering the slowdown in active user growth. The logged-in vs. logged-out difference is important because logged-in U.S. users are the most easily monetized group on Reddit. And if this group’s growth is stagnating, Reddit will need to increase the revenue it generates per user. The company earned $638 million in U.S. revenue in Q2 2026 from 53.2 million total DAUq, which puts U.S. average revenue per user (ARPU) at $11.85 in the period. And while logged-out users do create ad impressions, the majority of this revenue comes from the logged-in users.

Fortunately for Reddit, the decision to combine user metrics (which should be noted was announced months ago) appears prudent, given the company’s ability to monetize its most active users. Despite flat logged-in user growth, revenue continues to increase, which means Reddit is getting better at extracting dollars from its most dedicated users. Strip out the less valuable logged-out users, and U.S. ARPU rises to $27.62 in Q2 2026, up from $17.85 in Q2 2025, which shows faster revenue growth than the traditional per-user numbers. The monetization factor is the bull case moving forward, the reason management is combining user metrics, and the big caveat on the stock’s 22% drop.

Chart Shows Near-Term Bottom But Long Climb AheadReddit shares were already down on the year before the precipitous post-earnings drop, but had slowly been climbing out of their hole over the last few months. A death cross on the daily chart has scared bulls into hiding, and the latest earnings report coincided with a sharp price rejection at the 200-day moving average. The relative strength index (RSI) has bounced out of oversold territory following the stock’s 10% pop to open the week, but remains stuck in a bearish zone.

Analysts also noted the U.S. user growth slowdown, and the stock received several price target reductions following the Q2 report, including a $142 target from Wells Fargo, which is below the current price. But price target cuts from Oppenheimer, JPMorgan Chase, and Wedbush still have upside built under them, and the Q3 report will reveal whether monetization can keep outpacing engagement. For now, RDDT shares are likely stuck in another trading range, where the valuation has taken a hit, but upside catalysts are required to reignite the rally.

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

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Diversified Healthcare Trust (DHC) Q2 2026 Earnings Call August 4, 2026 10:00 AM EDT

Company Participants

Matt Murphy - Manager of Investor Relations
Christopher Bilotto - President, CEO & Managing Trustee
Anthony Paula - Vice President
Matthew Brown - CFO & Treasurer

Conference Call Participants

Michael Carroll - RBC Capital Markets, Research Division
John Massocca - B. Riley Securities, Inc., Research Division

Presentation

Operator

Good morning, and welcome to the Diversified Healthcare Trust Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the call over to Matt Murphy, Manager of Investor Relations. Please go ahead.

Matt Murphy
Manager of Investor Relations

Good morning. Joining me on today's call are Chris Bilotto, President and Chief Executive Officer; Matt Brown, Chief Financial Officer and Treasurer; and Anthony Paula, Vice President.

Today's call includes a presentation by management, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company.

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon DHC's beliefs and expectations as of today, Tuesday, August 4th, 2026. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than through filings with the Securities and Exchange Commission, or SEC.

In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO. net operating income, or NOI, and cash basis net operating income or cash basis NOI. A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website at www.dhcreit.com.

Key Takeaways SIMO began commercial production of MonTitan enterprise SSD controllers with two Tier 1 customers.Silicon Motion expects five more Tier 1 customers to begin production in the second half of 2026.SIMO is advancing PCIe Gen5 and Gen6 controllers to expand its AI and enterprise storage business. Artificial intelligence is reshaping the storage industry as hyperscale data centers, cloud providers and enterprise customers require faster, lower-latency storage solutions to support increasingly complex workloads. Silicon Motion Technology (SIMO - Free Report) , long known for its consumer NAND flash controllers, is leveraging this shift by expanding into enterprise SSD controllers, AI infrastructure and automotive storage markets.

The company's latest results suggest that this transformation is gaining traction. As enterprise products move into commercial production and new customer ramps begin, investors are evaluating whether AI-driven storage demand can support Silicon Motion's next phase of long-term growth.

Companies such as Western Digital (WDC - Free Report) and Marvell Technology (MRVL - Free Report) are also investing heavily in enterprise SSD controllers and AI storage solutions, underscoring the growing importance of advanced controller technology as hyperscale data centers and cloud infrastructure continue expanding.

SIMO's Enterprise Products Reach ProductionSilicon Motion's enterprise storage business reached an important milestone during the second quarter of 2026. Management announced that its MonTitan enterprise SSD controllers entered commercial production with two Tier 1 customers, marking the company's first meaningful commercial deployments in the enterprise SSD market. Another five Tier 1 customers are expected to begin production during the second half of 2026, significantly broadening the company's enterprise customer base. 

Management described the initial rollout as an exceptionally strong start following several years of investment in enterprise-class storage controllers. The first customer deployments are targeting AI compute storage applications that use TLC NAND to provide high-speed, low-latency storage located near GPUs and CPUs. Additional QLC-based enterprise SSD solutions are expected to begin ramping later this year as higher-capacity deployments expand.

Beyond MonTitan, Silicon Motion's Ferri automotive and enterprise Boot Drive storage products continue expanding across automotive, industrial and AI infrastructure applications, further diversifying the company's revenue base beyond traditional consumer storage markets.

How AI Is Expanding Silicon Motion's MarketArtificial intelligence is creating new storage requirements throughout the computing ecosystem. Large AI models require enormous amounts of high-performance storage capable of handling low-latency data movement between processors, accelerators and memory. Hyperscale cloud providers, enterprise data centers and edge computing platforms increasingly require enterprise SSD controllers designed for these demanding workloads.

Silicon Motion believes this trend significantly expands its addressable market. Management stated that the company is evolving from a consumer-focused NAND controller supplier into a diversified provider of storage controllers and solutions spanning AI infrastructure, enterprise storage and edge computing.

The company is also benefiting from structural changes within the NAND industry. As memory manufacturers devote more resources to high-bandwidth memory and other AI-related products, they are relying more heavily on third-party controller suppliers for embedded storage products. That dynamic has allowed Silicon Motion to continue gaining market share across embedded eMMC and UFS controllers despite softer smartphone demand.

At the same time, management continues expanding into automotive electronics, robotics, industrial systems and enterprise infrastructure, creating additional growth opportunities beyond smartphones and PCs.

Why PCIe Gen5 and Gen6 Matter for SIMONext-generation controller technology remains another important component of Silicon Motion's AI strategy. The company's PCIe Gen5 SSD controllers continue gaining customer adoption, particularly within higher-performance PC and enterprise applications. Although the transition from PCIe Gen4 has progressed more slowly than management anticipated, the company continues winning share across NAND manufacturers and module makers while benefiting from improving product mix and higher average selling prices.

Looking further ahead, Silicon Motion plans to complete the tape-out of its 4-nanometer PCIe Gen6 enterprise controller during 2026. Management has already secured multiple design wins with flash manufacturers and cloud service providers, positioning Gen6 controllers as an important long-term growth driver beginning around 2028.

Combined with expanding MonTitan deployments, these next-generation controller platforms could strengthen Silicon Motion's competitive position as enterprise storage demand continues growing alongside AI infrastructure investments.

Execution Will Determine the OpportunityWhile the long-term opportunity appears substantial, successful execution remains critical. Enterprise storage products typically require lengthy qualification cycles before moving into full-scale production. Revenue growth will depend on Silicon Motion completing customer validation, expanding production with additional Tier 1 customers and maintaining product leadership as enterprise deployments accelerate.

Supply conditions also remain an important consideration. Management expects higher NAND prices and constrained memory supply to continue affecting portions of the consumer electronics market, while rising component costs could slow smartphone demand during 2026.

The company's research report also highlights customer concentration, geopolitical uncertainty and memory cost inflation as risks that investors should continue monitoring even as enterprise opportunities expand.

If Silicon Motion executes successfully across these customer ramps while demand for AI infrastructure continues growing, enterprise storage could become a much larger contributor to future revenue.

How Ranking Signals Support the AI ThesisSilicon Motion currently sports a Zacks Rank #1 (Strong Buy), reflecting improving earnings estimate revisions following another quarter of revenue and earnings outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock also has a Momentum Score of A, indicating favorable earnings momentum and positive estimate trends that complement the improving business outlook. As the company expands further into enterprise storage and AI infrastructure, stronger earnings expectations continue supporting the bullish investment thesis.

At the same time, Silicon Motion carries a Value Score of F and a VGM Score of D, suggesting much of the company's anticipated growth has already been reflected in its share price. Those mixed Style Scores indicate that while the company's long-term AI opportunity appears increasingly attractive, investors should also recognize that the market is already assigning a premium valuation to those future growth expectations.

For investors with a long-term horizon, Silicon Motion's expanding enterprise portfolio, growing AI storage exposure and continued controller innovation position the company to benefit from one of the semiconductor industry's most important secular growth trends. The pace at which enterprise customer ramps translate into sustained revenue growth will likely determine whether the company ultimately establishes itself as a leading beneficiary of the AI storage cycle.

Key Takeaways FISV's Q2 revenues is projected at $5.1 billion, down 2.8% from the year-ago quarter's actual.Clover expansion may lift merchant solutions revenues, but operating income is expected to fall 13.4%.Financial solutions revenues may drop 6.3%, while segment operating income is forecast to slide 22%. Fiserv, Inc. (FISV - Free Report) is scheduled to release second-quarter 2026 results on Aug. 6, before market open.

FISV has outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average negative surprise of 0.4%.

Fiserv’s Q2 ExpectationsThe Zacks Consensus Estimate for revenues is $5.1 billion, relative to the year-ago quarter’s $5.2 billion. The consensus mark suggests a 2.8% fall from the year-ago quarter’s actual. While merchant solutions is expected to deliver slightly elevated revenues from the year-ago quarter, the top line is likely to have been weakened by the sharp fall in financial solutions’ revenues.

The consensus estimate for merchant solutions revenues is pinned at $2.6 billion, hinting at a marginal uptick from the year-ago quarter’s actual. We expect the primary growth factor to have been Clover platform expansion. Healthcare and Professional Services launched in March 2026 showed progress, which we anticipate to have continued in the second quarter of 2026 as well.

The Zacks Consensus Estimate for merchant solutions operating income is $791.4 million against the year-ago quarter’s $914 million. It reflects a sharp 13.4% year-over-year decline. Rising personnel costs, driven by client-facing workforce expansion and higher operating expenses incurred to fund investments, are the prominent reasons that are likely to have led to this cut.

For financial solutions, the consensus estimate for revenues is pegged at $2.4 billion, suggesting a 6.3% year-over-year decline. We anticipate non-recurring project and implementation fees to have led to this downturn.

The Zacks Consensus Estimate for the financial solutions segment’s operating income is pegged at $970.9 million, while it logged $1.2 billion in the year-ago quarter. This underscores a sizable 22% year-over-year slide from the year-ago quarter’s actual. Growing expenses associated with funding core improvements, Finxact infrastructure, Vision Next and CashFlow Central are likely to have affected the operating income.

The consensus estimate for earnings is pinned at $1.89 per share, suggesting a 23.5% year-over-year tailspin from the year-ago quarter’s actual of $2.47. Incremental expenses from investments fueling long-term client growth are expected to have affected the bottom line.

What Our Model Says About FISVOur proven model does not conclusively predict an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Fiserv has an Earnings ESP of -0.20% and a Zacks Rank of 4 (Sell) at present.

Stocks to ConsiderHere are some stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Thomson Reuters (TRI - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $1.9 billion, hinting at a 7.3% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at 96 cents per share, suggesting a 9.1% rally from the year-ago quarter’s reported number. Over the four trailing quarters, the company has an average earnings surprise of 3.1%.

TRI has an Earnings ESP of +2.35% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to announce second-quarter 2026 results on Aug. 5.

Dave Inc. (DAVE - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $169.8 million, suggesting a 28.9% jump from the year-ago quarter’s actual. For earnings, the consensus mark is $3.69 per share, indicating 17.5% growth. DAVE beat the consensus estimate for earnings in the trailing four quarters, with an average surprise of 45.8%.

DAVE has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 5.

Despite reporting record earnings per share and beating Wall Street estimates, Apple (AAPL +1.93%) stock fell hard after reporting its fiscal third-quarter 2026 results on July 30. Apple shares fell as much as 10% in the sell-off. So what triggered the investor negativity, and is this an opportunity or a red flag warning?

First, services revenue fell short of analysts' expectations at $30.7 billion. Secondly, and perhaps most concerning, management made it clear that there are serious constraints tied to DRAM and NAND memory. There is a shortage in the memory market, and that is causing the available supply to skyrocket in price.

This, in turn, means Apple will either have to absorb the additional costs and cut into its own margins or pass them on to consumers who are already constrained in their discretionary spending.

Analysts expected 12% revenue growth for the upcoming fourth quarter, but Apple's guidance is between 9% and 11%. This is largely what caused the big drop in stock price. So what should investors do now?

Image source: The Motley Fool.

Even with the significant price decline, Apple is still trading at a premium. For long-term investors, Apple's outlook is not exactly alarming. The memory shortage is affecting technology companies across the board, so it's not just an Apple-specific problem. Apple also has a very healthy business overall. Demand for the company's products remains strong and is likely to continue for the foreseeable future, even after CEO Tim Cook's departure this year.

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I'm bullish on Apple because it's taking a more conservative approach to artificial intelligence spending than its peers. The company's revenue still grew 16% year over year, and aside from the memory shortage, there isn't much slowing Apple down right now. It remains a great dividend-paying company.

Catie Hogan has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

Anthropic has signed a $10 billion, six-year deal for computing capacity with Volta Infra Holdings, a cloud infrastructure startup backed by Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), according to media reports citing people familiar with the matter, as the Claude maker moves to secure additional computing resources amid growing demand for its AI products.

Volta announced earlier Tuesday that it had secured a six-year, $10 billion agreement with an unnamed artificial intelligence company. The deal will be delivered in partnership with Bitdeer Technologies Group, a bitcoin miner that operates data centers, using a site in Norway.

The managed data center is expected to feature Nvidia’s next-generation Vera Rubin AI chips, according to details of the agreement. Volta was recently valued at $2.4 billion following a $300 million funding round.

Volta CEO Ricard Boada declined to identify the customer. Representatives for Anthropic and Bitdeer declined to comment.

The agreement adds to Anthropic’s efforts to expand its computing capacity as businesses and consumers increasingly use its Claude chatbot and other AI tools, particularly for coding and related tasks.

Anthropic has also entered computing agreements with SpaceX, Advanced Micro Devices and Akamai Technologies, while the company is reportedly in discussions to lease computing capacity from data centers operated by Meta Platforms.

In Brief

Posted:

8:38 AM PDT · August 4, 2026

Image Credits:Scott Olson / Getty Images Walmart announced on Tuesday that it has completed its acquisition of self-service streaming TV advertising platform Vibe.co. The acquisition, which was announced in June, brings Vibe.co into Walmart Connect, the retailer’s connected TV advertising platform.

The Wall Street Journal previously reported that Walmart was paying $1.4 billion for the acquisition.

Vibe.co’s platform enables small- and medium-sized brands to launch streaming TV campaigns across publishers. By combining Vibe.co’s platform with Walmart Connect, Walmart is expanding its connected TV advertising business and gaining new ways to reach customers.

“Vibe has built an exceptional platform that makes streaming TV advertising simple and accessible for businesses of all sizes,” said Ryan Mayward, GM and senior vice president of Walmart Connect, in a press release. “Together, we’ll build on that foundation to help advertisers connect with customers more seamlessly across streaming, shopping and the broader commerce journey while making advertising more measurable, effective and accessible.”

Walmart made its last major acquisition in 2024 when it purchased TV maker Vizio for $2.3 billion to strengthen its advertising business.

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Exxon Mobil (NYSE:XOM | XOM Price Prediction) posted its best underlying quarterly profit in four years, with shares hitting fresh highs. After a 30.9% year-to-date run, risk/reward looks stretched.

Our 24/7 Wall St. price target for Exxon is $139.86, implying 9.14% downside from current levels. The recommendation is hold with 90% confidence, reflecting strong operations colliding with a rich multiple.

24/7 Wall St. Price Target Summary Metric Value Current Price $153.94 24/7 Wall St. Price Target $139.86 Upside/Downside -9.14% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong on Exxon Our price target sits below current trading levels, and the bull argument is real. Golden Pass LNG Train 1 shipped its first cargo in April 2026, Guyana keeps beating schedule, and WTI is up 19.8% month over month to $84.25. If Brent stays elevated on Middle East risk, Exxon could easily exceed our target.

A Four-Year Profit Peak Meets a 44% Rally Exxon shares are up 43.65% over the past year and 14.06% in July alone, sitting just 5% below the 52-week high of $175.22.

Q1 2026 delivered adjusted EPS of $1.16 versus $1.01 expected, a 15.15% beat and the fourth straight quarter above consensus.

Underlying earnings hit $8.77 billion versus $7.58 billion a year earlier, the strongest underlying quarter in roughly four years, despite GAAP results dinged by $3.88 billion in unfavorable derivative mark-to-market timing and $706 million in Middle East disruption losses. CEO Darren Woods called it a “fundamentally stronger company”.

The Case for $164 and Higher Bulls cite a genuinely improved earnings engine. Cumulative structural cost savings since 2019 hit $15.6 billion, targeting $20 billion by 2030. Guyana crossed 900,000 barrels per day, Permian hit records, and advantaged assets grew to 59% of production.

Capital return is exceptional: $20 billion in 2026 buybacks planned and 43 consecutive years of dividend growth. Analyst consensus sits at $167.09, with bull-case scenarios reaching $164.10, a 6.6% return. If Brent holds near the EIA’s $106/b Q2 forecast, upside estimates look conservative.

What Could Send Shares Back to $125 The bear case starts with valuation. Exxon trades at a a premium trailing multiple, well above peers, and the 224.56% five-year rally already prices in significant upside.

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

Q1 free cash flow fell 61.74% to $2.70 billion as capex climbed, and the effective tax rate jumped to 40%. The EIA expects Brent to fall to $79/b in 2027 as Middle East supply returns. Our bear-case scenario points to $125.51, an 18.47% drop.

How Exxon Compares to Chevron and ConocoPhillips Chevron (NYSE:CVX) trades at a forward P/E of 14 versus Exxon’s 14, but its trailing P/E is 19 versus Exxon’s 26. Chevron’s analyst target of $215 implies meaningful upside, suggesting the Street sees Exxon’s premium as harder to justify.

ConocoPhillips (NYSE:COP) offers a pure upstream contrast. COP trades at a a lower forward multiple with a a lower PEG than Exxon. COP looks cheaper per unit of growth, reinforcing our view that Exxon’s target should sit closer to $140 than $167.

Model Verdict: Rich Multiple Meets Stronger Engine The 24/7 Wall St. price target is $139.86, recommendation hold, confidence 90%. Valuation tips the scale: this is a fundamentally stronger Exxon, but a premium trailing multiple and 5% from the 52-week high leaves little margin for error.

The setup improves if crude sustains above $90 and free cash flow reaccelerates in Q2. Downside risk grows if Brent slides toward the EIA’s 2027 forecast. The current dividend yield sits at 2.6%.

Here is where our model projects Exxon could trade, assuming current growth trajectories hold.

Year 24/7 Wall St. Price Target 2026 $148.65 2027 $145.00 2028 $150.00 2029 $155.00 2030 $141.83 These projections assume Exxon continues executing on cost savings and advantaged-asset growth. Significant upside or downside could come from sustained Middle East disruption or faster-than-expected energy transition.

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

Contact [email protected] for any questions or corrections.

For years, both Coca-Cola (KO -0.49%) and PepsiCo (PEP -0.74%) talked about the same shift: Consumers were pulling back from sugar and reaching for lighter, healthier drinks. Seeing a trend and getting ahead of it are two very different things, though. And the latest quarter makes clear that only one of these giants actually did the hard work early. And it's not close.

Coca-Cola got out in front The proof is in Coke's second-quarter results, and it runs right through its zero-sugar lineup. Coca-Cola Zero Sugar grew 16% globally, and not in one lucky region but across every geographic segment. Diet Coke and Coca-Cola Light added another 7%, led by North America and Asia. This is not a fluke. It is the payoff from investing earlier, more broadly, and more inventively in sugar-free and functional drinks.

Image source: Getty Images.

You can see that same instinct in what Coke is launching. It's rolling out Coca-Cola Zero Zero, a drink with zero sugar, zero calories, and zero caffeine, across Asia and Latin America. It introduced Bodyarmor Fit, a zero-sugar sparkling sports drink with electrolytes. Powerade volume jumped 8%. All that innovation helped drive a full 5% volume gain and 6% organic revenue growth for the quarter.

PepsiCo got caught flat-footed Pepsi's quarter told the opposite story. Its North American beverage volume fell 4%, and its North American food business saw organic revenue slip 2%. Core operating margin contracted to 16.8%, and overall organic revenue grew just 2.4%, well behind Coke's 6%.

The language from management was just as telling as the numbers. Pepsi cited the need to "restate certain global brands" and to invest in "affordability initiatives." Translated, that signals brand fatigue and pricing pressure, a company repositioning and discounting to win back shoppers rather than leading them somewhere new. Tellingly, Pepsi merely affirmed its full-year guidance instead of raising it. When one rival is accelerating and the other is playing defense, the gap speaks for itself.

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But is Coke's edge already priced in? Here's where it gets interesting for investors, because the market isn't blind. Everyone can see that Coke is winning, and the stock reflects it. Coca-Cola trades at a clear premium to PepsiCo, while Pepsi sits at a cheaper valuation with a noticeably higher dividend yield. So the real question is not which company is executing better, since that is plainly Coke. It's whether you're paying up for a story the whole market already knows.

That premium is the catch. A lot of Coke's operational edge is arguably baked into its price, which can mute future upside even if the business keeps humming. Pepsi, meanwhile, is the classic beaten-down value setup: cheaper, higher-yielding, and pushed by activist investors to fix its brands and sharpen its snacks and pricing. If that turnaround gains traction, the room for a positive surprise is larger simply because expectations are lower.

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My honest read is that these two stocks suit two different investors. Coca-Cola is the higher-quality business, clearly winning the health shift, and it deserves a premium, though that premium means you're buying momentum near full price rather than a bargain. PepsiCo is the cheaper, higher-income, higher-risk bet on a recovery that hasn't yet shown up in the numbers.

If I had to choose one to buy today, I would lean toward Coca-Cola, because paying a fair price for the clear winner of a durable trend tends to beat gambling on a laggard's fix. But I wouldn't dismiss Pepsi. Its low price and fat yield mean it doesn't need to win the health race to reward patient investors; it just needs to stop losing it. The trend is real, and for now, only Coke has truly gotten ahead of it.

Intel INTC shares have surged 10% on Tuesday.

The semiconductor company's stock has staged a dramatic comeback in 2026 – currently trading at more than 2x its price at the start of this year.

However, despite recent technological advancements and foundry wins, the company has yet to hit a significant operational milestone: achieving GAAP annual profitability.

For those sticking with INTC stock, though, the good news is that the semiconductor giant is now closer than ever to crossing that threshold.

In fact, experts now believe accelerating AI demand and expanding gross margins could see it post its first profitable year since 2023 as soon as next year.

Intel's headline GAAP loss of $11 billion in Q2 appears dramatic at first, but a closer examination reveals that the red ink stems primarily from non-cash accounting line items.

The dominant drag was a $12.5 billion non-cash, mark-to-market charge tied to escrowed shares set aside for the US government under its agreement with the Trump administration, an accounting adjustment rather than an outflow of cash.

Combined with Q1 non-cash goodwill impairments, these charges obscure Intel’s solid underlying performance across core business units.

Excluding these non-operational items, INTC actually recorded $2.2 billion in non-GAAP adjusted net income and generated $7 billion in operating cash flow during Q2 alone, powered by a 59% year-on-year increase in Data Center and AI revenue.

Reaching annual GAAP profitability in 2027 requires Intel to cover about $23 billion in projected annual operating expenses.

With GAAP gross margins expanding 100 basis points sequentially to 40.4% in the second quarter, and management guiding for 41% in the current quarter – the giant's revenue threshold for break-even sits near $56 billion annually.

And its current sales pace comfortably clears that mark, with first-half revenue reaching roughly $29.7 billion and Q3 revenue guidance set at $15.8 billion to $16.8 billion, implying an annualized run rate of nearly $65 billion.

While H1 accounting losses preclude full-year GAAP profitability in 2026, modest top-line growth of 5% to 10% next year against mid-$20 billion operating expenditures should comfortably yield several billion dollars in GAAP net profit.

While the operational path toward black ink in 2027 is clear, INTC's market cap of roughly $503 billion signals Wall Street has already priced in a significant portion of this recovery.

Trading at a rather stretched 90x forward earnings, investors must weigh near-term noise, such as further paper revaluations of government escrow shares or restructuring costs, against long-term execution on the 18A manufacturing node.

For new capital, chasing aggressive intraday rallies carries valuation risk; a more prudent approach is waiting for price consolidation or building positions on pullbacks.

Note that Wall Street currently rates Intel shares at Hold only, with the mean price target of about $114 indicating potential upside of nearly 15% from here.

LONDON, Aug 4 (Reuters) - Cloud computing giant Oracle Corp is on the cusp of a junk-grade credit rating and its shares have tanked as the artificial intelligence hyperscaler becomes the fall guy of investors' concerns over the sector's debt-fuelled spending binge.

The U.S. multinational is an outlier among top software firms racing to buy chips and build computing power to leapfrog the AI boom, forced by its limited cash reserves to borrow heavily and undertake massive long-term leases.

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The extent of the splurge came to light in June, when Oracle's results for the fiscal year ending in May 2026 showed its free cash flows ​were negative, the bulk of its revenue was spent on capital expenditure and it had signed roughly $260 billion of data centre leases, some starting next year.

The disclosures rattled investors and put Oracle squarely in the crosshairs of ratings agencies which have long warned about the company's ‌heavily leveraged balance sheet.

S&P Global Ratings was the first to move, lowering Oracle's credit rating to BBB-, one notch above junk, in July.

As per Oracle's reported numbers, its debt of $129.5 billion was roughly 4.3 times EBITDA, or earnings before expenses such as interest payments, depreciation, taxes and amortisation.

A debt-EBITDA ratio above 4 signals financial strains, but the ratio can vary with methods and metrics each analyst uses.

Oracle's peers Alphabet Inc. (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab, Microsoft Corp. (MSFT.O), opens new tab and Meta Platforms Inc. (META.O), opens new tab have ratios under 1.

Oracle's massive lease commitments, which it does not yet have to count as debt but which analysts include in estimates, paint an even more worrying picture.

"While multiple other hyperscaler providers are building out AI infrastructure, none are as leveraged or cash flow negative as ​Oracle entering into this build phase," Moody's Ratings said in its February note explaining its negative outlook on a Baa2 rating, one tick above S&P's.

Despite the scale and profitability of its software business, "leverage will increase materially in the near term and could approach 5x temporarily," Moody's said.

The ​funding needs are so large, Oracle will need to issue more debt despite its ratings being severely constrained, while it also cuts back on share buybacks and raises equity capital too, analysts said.

Oracle expects capital expenditures of up ⁠to $95 billion in fiscal 2027, though it expects repayments from customers for up to $25 billion of that.

Oracle declined comment for this article. In earnings calls, it said it remains committed to disciplined capital allocation and preserving its investment-grade credit rating.

S&P analyst Andrew Chang projects Oracle's debt-EBITDA, which per his estimate was 3.6 ​in May, peaking at 4.4 in the coming two fiscal years, given negative cash flows and high expenses, but his base-case scenario is the ratio will not exceed the 4.5 mark that will trigger another downgrade.

"We could downgrade Oracle if Oracle sustains leverage exceeding 4.5 times," Chang said.

Fitch rates Oracle BBB, the same level as ​Moody's, and said in February a sustained EBITDA leverage ratio above 3.5, or above 4 if rents were included, would trigger negative ratings action.

FALLEN ANGEL"There is a risk here that we might have two low BBB ratings for Oracle, maybe even by calendar year-end," Morgan Stanley credit analyst Lindsay Tyler said in a podcast on Friday.

"This has raised justifiable investor questions around fallen angel risk," she said, using a phrase for companies that fall from investment grade to junk.

"I think the fallen angel risk down to high yields is not immediate, but it is a medium-term risk just when you're considering execution and monetization."

Oracle has become a speed bump for the fevered AI sector, forcing investors to revalue the colossal ​spending and lofty growth promises that had driven outsized gains in the stock prices of chipmakers and AI businesses.

Its share price has halved since June to $129 and bonds have sold off, yanking yields up to the 7% to 8% range normally associated with debt below investment grade and compared to 2.5% to 3.5% ​for Alphabet and Amazon bonds.

AI boom worries“If you study Larry Ellison, you’ll see there’s a few times he’s bet the company," North Carolina State Treasurer Brad Briner, who chairs the state’s investment authority overseeing retirement funds for public employees, told Reuters.

"He’s been successful but it’s always uncomfortable for bond investors. We get the downside risks but don’t get as ‌much upside."

Oracle has pointed ⁠to a staggering growth in remaining performance obligations (RPOs), a measure of future revenue, of $638 billion, as expected return on the capital it is deploying.

"Is this visionary or expensive? The big four (Alphabet, Amazon, Meta, Microsoft) entered this cycle with leverage below 1x and are aggressive but defensible. Oracle is not," Algebris Investment said in a note in June on market intelligence platform AlphaSense.

According to Moody's Ratings senior account analyst David Gonzales, leases reduce upfront capital investment but impede financial flexibility because the data centres are not owned, hence cannot be sold or pledged to support additional borrowing.

Alex Haissl, head of software & cloud equity research at Rothschild & Co Redburn, has a sell recommendation on the stock.

"What is challenging is that the market still assumes that these data centers come online on time, that they get the revenues, that they get the profits," said Haissl.

"We're much more cautious about the economics," he said, highlighting the ambitious projections Oracle has made for its high-margin ​cloud services.

S&P's Chang said the mismatch between data centre leases for 15 to ​19 years and short-term customer deals up to five years is also ⁠an "absolutely key risk".

"You have to assume that multiple years out the AI demand is the same or hopefully better than today for this ecosystem to remain viable and for Oracle to meet their lease payments to data centre owners," he said.

Customer concentration is another risk, given almost half of the RPOs comprise contracts with AI firm OpenAI.

Colby Stilson, head of fixed income at Brown Advisory, is wary. "If our investment thesis is based on revenue yet to come, especially when ​it's revenue coming from companies that have a lot of risk associated with them or don't have positive free cash flow generation, that makes that investment even more tenuous," he said.

A LOT AT STAKEOracle's fiscal 2026 ​earnings report showed a robust record 17% revenue ⁠growth during the year.

A majority of analysts on LSEG still rate Oracle stock a buy. Funds such as T. Rowe Price and Neuberger Berman hold its bonds.

"While Oracle has the most strained balance sheet within the sector, we believe they are committed to investment-grade ratings and will manage their liabilities accordingly," said Neuberger's senior portfolio manager David Brown.

Yet, days before the S&P downgrade, Oracle's earnings report was explicit that changes to its credit rating "could negatively affect the value of both our debt and equity securities and increase the interest amounts" paid on outstanding or future debt.

A downgrade could also reduce access to or cost of short-term financing and affect the terms of ⁠long-term commitments including data ​centre leases, it said.

Indeed, funding for large-scale projects, such as the $14 billion debt issued by RD Michigan Property Owner data centre campus, and interest rates on another $10 billion revolving credit are ​explicitly linked to Oracle's rating.

In December, the Financial Times reported that Blue Owl Capital had backed out of funding a $10 billion Oracle data centre project intended to serve OpenAI due to concerns about Oracle’s spending commitments and rising debt levels. Blue Owl told Reuters the decision was unrelated to Oracle's debt.

Credit protection on Oracle, measured by 5-year credit default swaps , recently surged to an ​18-year high of 215 basis points, signaling bond markets are pricing risk much higher than its current credit rating merits. CDS for peers trade around 80 bps.

Additional reporting by Ross Kerber in New York; Editing by Alistair Bell

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

Vidya heads global finance & markets breaking news, overseeing dozens of reporters across the world who cover spot currency, bond, stock & crypto market developments and other fund flows, investor activity, govt policies and corporate actions that impact markets. She also writes and edits markets insights on emerging Asia, with a keen interest in China, and anchors the Cryptoverse column. Vidya has spent 3 decades covering markets, and was previously a trader at Societe Generale. She believes in life-long learning and training, and is now adding Gen AI courses to her masters degree in Physics, MBA and post-grad diploma in applied finance & securities markets.