Track market-moving stories before they get noisy

Kimberly-Clark (KMB - Free Report) reported $4.19 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.6%. EPS of $1.80 for the same period compares to $1.92 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.23 billion, representing a surprise of -1.02%. The company delivered an EPS surprise of -10%, with the consensus EPS estimate being $2.00.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Kimberly-Clark performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales - North America (NA) - Volume impact - YoY change: -0.3% compared to the -0.4% average estimate based on two analysts.Net Sales - North America (NA) - Net Price impact - YoY change: -0.7% versus -0.1% estimated by two analysts on average.Net Sales - North America (NA) - Mix/Other impact - YoY change: 0.2% compared to the 0.3% average estimate based on two analysts.Net Sales - North America (NA) - Currency Translation - YoY change: 0.1% versus the two-analyst average estimate of 0.1%.Net Sales - North America (NA) - Organic - YoY change: -0.7% versus -0.2% estimated by two analysts on average.Net Sales - International Personal Care (IPC) - Volume impact - YoY change: 0.3% versus the two-analyst average estimate of 1.3%.Net Sales - Consolidated - Organic - YoY change: -0.1% compared to the 0.6% average estimate based on two analysts.Net Sales - International Personal Care (IPC) - Currency Translation - YoY change: 3.1% versus the two-analyst average estimate of 1.7%.Net Sales - International Personal Care (IPC) - Organic - YoY change: 1% versus the two-analyst average estimate of 2%.Net Sales - Consolidated - Currency Translation - YoY change: 1.1% versus the two-analyst average estimate of 0.6%.Net Sales- International Personal Care (IPC): $1.49 billion compared to the $1.49 billion average estimate based on two analysts. The reported number represents a change of +4.1% year over year.Net Sales- North America (NA): $2.7 billion compared to the $2.72 billion average estimate based on two analysts. The reported number represents a change of -1.2% year over year.View all Key Company Metrics for Kimberly-Clark here>>>

Shares of Kimberly-Clark have returned -4.8% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

UPS (UPS +2.10%), one of the world's largest shipping couriers, trades at just 14 times forward earnings and pays a forward dividend yield of 6.4%. Does that make it the best dividend stock in the industrial sector right now, or does it face too many unpredictable headwinds?

Image source: UPS.

Has UPS finally stabilized its business? UPS' stock has risen about 26% over the past 12 months. But it remains 44% below its all-time high of $192.88, which it reached on Feb. 2, 2022.

Today's Change

(

2.10

%) $

2.25

Current Price

$

109.12

UPS' stock stumbled as delivery volumes pulled back from pandemic-era levels and margins shrank. Inflation, intense competition from FedEx and other couriers, a new contract with the Teamsters union to avert a strike, and an intentional reduction in Amazon's (AMZN -1.82%) lower-margin orders exacerbated that pressure.

To stabilize its business, UPS focused on securing higher-margin orders from small- to medium-sized businesses and healthcare customers as it continued to decouple from Amazon. It also trimmed its workforce and automated more tasks. So while UPS' total package volume and revenue continued to decline, its average revenue per piece rose, its adjusted operating margins stabilized, and its adjusted EPS finally grew again in 2025.

Metric

2021

2022

2023

2024

2025

Average Daily Package Volume

25.25M

24.29M

22.29M

22.42M

20.85M

Average Revenue Per Piece

$12.32

$13.38

$13.62

$13.60

$14.50

Total Revenue

$97.29B

$100.34B

$90.96B

$91.07B

$88.66B

Adjusted Operating Margin

13.5%

13.8%

10.9%

9.8%

9.8%

Adjusted EPS

$12.13

$12.94

$8.78

$7.72

$7.16

Data source: UPS.

For 2026, UPS expects its revenue to rise 3% to $91.2 billion as its adjusted earnings grows 1% to $7.22 per share. Those growth rates might seem anemic, but they would mark the first time its revenue and adjusted EPS rose in tandem since 2022. They also counter the bearish notion that its macro, competitive, and labor-related challenges would crush its business.

Is UPS a reliable dividend stock? UPS' adjusted EPS estimate for 2026 will easily cover its forward dividend rate of $6.56 per share. Analysts also expect its revenue and adjusted EPS to grow 4% and 12%, respectively, in 2027 as it integrates more AI features, automates its logistics, and faces fewer headwinds in a warmer macro environment. That stabilization should give it ample room to raise its dividend.

UPS isn't an exciting stock, but its future looks much brighter than it did two years ago. If it continues to grow, it could become one of the best dividend plays in the industrial sector.

Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

Micron Technology shares MU surged more than 8% on Tuesday after Bank of America reaffirmed its bullish stance on the memory-chip maker, arguing that the recent weakness in semiconductor stocks presents an "enhanced buying opportunity" rather than a deterioration in the company's long-term outlook.

The rally also reflected improving sentiment across Wall Street, with the S&P 500 climbing about 1.5% to a fresh record after upbeat earnings from companies including Palantir Technologies and Caterpillar, while easing oil prices further boosted investor appetite for risk assets.

The brokerage maintained its Buy rating on Micron and reiterated a price target of $1,550, implying more than 72% upside from current trading levels.

AI demand remains the key driverIn a note to clients, Bank of America analyst Vivek Arya said investors have become overly focused on the possibility of future pricing pressure in the memory market, even though current fundamentals continue to improve.

Arya acknowledged that memory prices and profit margins are likely to normalize eventually as additional supply enters the market between mid-2027 and 2028.

However, he argued that the recent sell-off reflects investor positioning ahead of a potential downturn rather than any meaningful deterioration in demand.

"Hyperscaler spending continues to rise despite higher component costs, suggesting semis/memory pricing power," Arya wrote.

According to the brokerage, the ongoing wave of artificial intelligence investments by major cloud providers continues to support demand for advanced memory products, particularly high-bandwidth memory used in AI servers.

Bank of America also noted that GPU rental rates remain close to record highs, while none of the major hyperscale cloud companies has indicated that memory availability is limiting AI deployments.

That, Arya said, suggests pricing power across the semiconductor memory industry remains intact.

Earnings outlook remains resilientThe brokerage's bullish thesis is underpinned by its earnings expectations.

Bank of America projects Micron could generate earnings per share of roughly $150 in fiscal 2028.

Even under a bearish scenario in which DRAM and NAND prices decline in line with previous industry downturns, the brokerage believes earnings could still remain near $100 per share.

That would be substantially higher than Micron's previous cycle peak of around $12 per share recorded in 2018.

According to the brokerage, the stock is currently valued at only about eight to nine times its projected bear-case earnings, suggesting investors are assigning little value to the company's AI-related businesses, including its high-bandwidth memory segment.

Bank of America also pointed to the increasing use of long-term supply agreements, which it expects could eventually account for between 50% and 70% of industry capacity.

While such agreements cannot eliminate cyclical downturns, they could reduce pricing volatility compared with previous memory cycles.

Micron has faced significant volatility in recent weeks as investors questioned whether aggressive AI spending by hyperscale cloud companies would eventually slow and whether rising competition from China could erode the company's market position.

Concerns intensified after Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, completed its initial public offering and reports emerged that the company was considering building a second DRAM fabrication facility in Beijing.

CXMT has rapidly expanded its presence in the global memory market.

According to Counterpoint Research, the company held an 8% share of the global DRAM market in the first quarter, compared with just 3% a year earlier.

BofA argued China's CXMT is still "not a threat in AI," as it primarily serves commodity DRAM rather than high-bandwidth memory.

Samsung Electronics, SK Hynix and Micron together still account for nearly 90% of the global DRAM market and continue to dominate the advanced high-bandwidth memory segment used in AI applications.

While investors remain wary of future industry supply increases, Bank of America believes the current pullback has created an attractive entry point for long-term investors betting on continued AI infrastructure spending and sustained demand for advanced memory chips.

Micron stock surged after Bank of America reaffirmed its Buy rating, citing strong AI demand, a resilient earnings outlook, and limited threat from China's CXMT.

HSBC Holdings PLC's (LSE:HSBA, NYSE:HSBC) return to share buybacks was deemed a bit on the small side, despite the Asia-focused lender's stronger-than-expected quarter and improving business momentum.

The FTSE 100's largest company announced a $1 billion buyback alongside a 60% rise in second-quarter pre-tax profit to $10.1 billion.

It was the first buyback since HSBC paused repurchases to fund its acquisition of the remaining shares in Hang Seng Bank in October.

Jefferies analyst Joseph Dickerson called it a "modestly lower buyback than we expected", which "may underwhelm". He had pencilled in $2 billion, a figure he said appeared to match investor expectations, although there was no formal consensus forecast.

UBS had also expected $2 billion. Analyst Jason Napier said he was "surprised" the return was not bigger given the strength of HSBC's first-half performance.

The disappointment looks more about restrained ambition than weak trading, the analysts suggested.

Second-quarter profit excluding notable items beat company-compiled consensus by 5%, as income came in ahead of expectations and operating costs remained in line.

Loans increased 5% at constant currency, led by corporate and institutional banking and the UK business. Wealth income excluding net interest income rose 21%, while net new money increased 8%.

"The direction of travel for consensus estimates looks to be slightly upwards following a 6% PBT beat in Q2 with notable balance sheet growth," Dickerson said.

HSBC also raised expected savings from its restructuring to $2 billion from $1.5 billion. However, management flagged higher variable pay in the second half and investment intended to support revenue growth in 2027.

The bank strengthened its interest income guidance only slightly, from "around" $46 billion to "at least" $46 billion, while leaving its longer-term targets unchanged.

UBS retained its 'neutral' rating and 1,520p target, noting that HSBC is already valued at 2.2 times tangible book value.

Napier said: "In short, HSBC is performing better than consensus forecasts but didn’t deliver the Banking NII or buyback we’d forecast and, with targets unchanged and higher costs flagged won’t, we think, force a market rethink on the financial outlook today."

By PYMNTS  |  August 4, 2026

 | 

Highlights

FIS says its issuing strategy is gaining traction with large financial institutions as renewals, new client wins and cross-selling reinforce the rationale behind the Total Issuing Solutions acquisition.

Banks continue spending on payments, fraud prevention, data and modernization projects even as broader technology budgets remain under scrutiny, according to management.

A lower Capital Markets outlook, driven by slower sales and delayed backlog conversion rather than weakening demand, overshadowed another solid quarter for Banking Solutions.

FIS management spent much of Tuesday morning (Aug. 4) talking about banking, issuing and payments growth.

Although the company’s Banking Solutions business continued to outperform expectations, investors pushed the stock lower in early trading on Tuesday, down 7%, after management reduced its full-year outlook for Capital Markets, citing weaker-than-expected sales, slower implementation of existing backlog and softer professional services activity. On a second quarter earnings call, executives repeatedly described those issues as execution problems rather than weakening customer demand.

FIS lowered its full-year revenue outlook Tuesday after reducing expectations for its Capital Markets business, overshadowing another quarter of steady growth in Banking Solutions, where payments, issuing and recurring software revenue continued to expand.

The company now expects full-year revenue growth of 4.5% to 5%, down from its previous forecast of 5.1% to 5.7%. FIS maintained its Banking outlook while reducing expected Capital Markets growth to 3% to 3.5% from 5.5%, citing lower professional services sales, slower implementation of signed business and weaker recurring revenue growth than previously anticipated.

Banking Solutions remained the stronger of the company’s operating segments during the quarter. Banking revenue increased 5.6% on a pro forma basis, Payments grew 6.4% and total Banking Solutions revenue rose 6.1%. Recurring revenue increased 5%, while recurring sales were up 14%. The segment also expanded margins through product mix, cost savings and integration synergies.

“Our total issuing solutions acquisition thesis is playing out as expected with real client wins and revenue growth across the portfolio,” Chief Executive Officer and President Stephanie Ferris said during the conference call with analysts.

Issuing was a focus throughout both the prepared remarks and the analyst question-and-answer session. Management noted that since the beginning of 2025, FIS has renewed approximately one-third of its issuing revenue, with 72% of the portfolio now under contract through 2029 and beyond. Enterprise-wide annual contract value sold to joint FIS and Total Issuing Solutions customers increased 35% during the first half of the year, according to comments on the Tuesday call. Ferris later told analysts that FIS has converted approximately 30 million accounts during the past year, including one of the largest portfolio migrations she has seen in the industry.

“We are the only known processor that can convert accounts at scale and size. We’ve never had a failed … migration,” she said.

Analysts noted that Payments has become the company’s largest business. Ferris said Total Issuing Solutions is growing in line with the overall Payments segment, while Chief Financial Officer James Kehoe said FIS expects Payments to continue growing at roughly current mid-single-digit levels and to outpace the Banking software business over the longer term.

Management also described continued customer demand for payments modernization, fraud prevention, data management and lending technology.

Ferris said banks continue investing in payment capabilities for consumers, commercial customers and small businesses, while demand remains strong for fraud tools, data platforms and modernization projects. She added that FIS has not seen customers delay technology decisions in the areas where it competes.

The discussion with analysts also highlighted changes in how banks are approaching core modernization.

Rather than replacing core systems outright, Ferris said large financial institutions are increasingly looking at orchestration layers, ledgers and customer-master capabilities that can modernize existing infrastructures.

AI as Operating Tool Artificial intelligence was presented on the call as an operating initiative rather than a standalone product announcement.

The company said it now has 10 AI products in market, more than 200 live customers and a pipeline of more than 500 opportunities. Internally, FIS reported AI engineering throughput has increased by 1.5 to two times while software defects have declined approximately 30%.

On cybersecurity, Ferris said AI is helping security teams identify and remediate vulnerabilities more quickly.

“Cyber is one of our biggest technology spends. It has been and it continues to be,” she told analysts, adding that AI is improving productivity within the company’s cyber operations.

Despite lowering its 2026 expectations, management said it expects recurring revenue growth in Capital Markets to improve as customer attrition moderates and delayed implementations move into production.

During its second-quarter earnings call on Tuesday, Spotify again teased the upcoming release of a new product that will allow music fans to leverage AI to make covers and remixes of artists’ music, with the artists’ consent.

The company also announced that Merlin, a licensing partner for independent labels and distributors, has now joined Universal Music Group (UMG) on the new AI music effort. The deal brings more than 30,000 labels from Merlin’s network to the product, which will allow fan-made covers and remixes by artists who agree to participate.

Spotify has positioned its AI music product as being significantly different from the more controversial AI music startups that have been used to create fully artificial songs. Instead, Spotify co-CEO Gustav Söderström told investors on Tuesday’s call that the company’s AI music product will be about “real artists, not fake artists.”

“We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art,” added co-CEO Alex Norström. “We also obviously want to give them credit. And last but not least…we not only have the consent and give credit, but we also drive the compensation for this. So, really, we’re talking about the first legal way to partake in this AI tailwind that we see coming for interactive music,” he said.

AI music has flooded streaming services. Music streamer Deezer recently noted that more than 50% of daily track uploads were generated with AI, up from 10% in January 2025.

The company told investors that a research preview of the fan remix and covers product would initially be made available to a subset of users. Spotify also noted that it would not require a full music catalog to get started. The company did not say when the preview would arrive.

The new tool will launch as a paid add-on, creating an additional revenue stream for artists, Spotify previously said.

“Our remix and covers I think is an incredibly exciting product again because there is no one else that can really do this,” Söderström said. “Normal generative music will happen with or without us. This product will not happen without us, and it needs to exist so that existing artists can participate in this.”

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

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Key Takeaways Iridium shares rose 23.2% in three months on growth programs, recurring revenues and two major deals.Service revenues grew 4%, made up 72% of sales and supported a recurring base as subscribers rose 6%.Premium valuation, weaker earnings and transaction risks could test Iridium's rally after its recent gains. Iridium Communications Inc. (IRDM - Free Report) shares have gained 23.2% in the past three months as investors assessed expanding growth programs, recurring service revenues and two major corporate transactions.

The advance has support from improving top-line trends and a broader service portfolio. Yet weaker earnings, premium valuation and transaction-related risks leave the next move less clear.

What May Be Supporting IRDM's Three-Month GainSecond-quarter 2026 revenues increased 4% year over year to $225.2 million. Service revenues also rose 4% and represented 72% of total revenues, giving Iridium a sizable recurring base while total billable subscribers expanded 6%.

Image Source: Zacks Investment Research

Commercial Internet of Things data revenues grew 5% as subscribers increased 9%. Progress in aviation safety, positioning, navigation and timing services and direct-to-device connectivity may also have improved sentiment, though these developments cannot be isolated as the cause of the stock's gain.

Iridium's Growth Engines Still Have Room to RunThe Iridium 9604 module combines satellite connectivity, low-power cellular access and global navigation satellite system positioning in one compact platform. Iridium NTN Direct, planned for later in 2026, could extend standardized satellite links to low-cost Internet of Things and consumer devices.

The commercially available positioning, navigation and timing application-specific integrated circuit broadens potential uses in infrastructure, communications and transportation. Aireon adds space-based aviation surveillance and is expected to contribute at least $100 million in annual service revenues. Rocket Lab Corporation (RKLB - Free Report) could eventually add launch and satellite manufacturing capabilities if its pending acquisition of Iridium closes.

Valuation Could Limit IRDM's Next Leg HigherIRDM trades at 5.9X trailing sales, above the 2.3X sub-industry multiple. That premium indicates that investors already assign substantial value to future service expansion and the expected contribution from Aireon.

The multiple remains below Iridium's five-year median of 6.2X, so the stock is not expensive relative to its own history. Still, recent reductions in earnings estimates make a further rerating harder to justify without clearer profit improvement.

Execution Risks Could Test Iridium's MomentumCommercial broadband revenues declined 8% in the second quarter, while broadband average revenue per unit fell 7% to $243. Equipment costs rose to $13.5 million from $11.3 million. Net income dropped to $9.7 million from $22 million, primarily because of higher transaction costs.

The Aireon purchase increased financial obligations through a $100 million revolver draw and assumed credit-facility debt. The Rocket Lab transaction adds merger expenses, closing uncertainty and exposure to Rocket Lab's share price because the stock consideration adjusts within a pricing collar. Globalstar, Inc. (GSAT - Free Report) is also expanding satellite Internet of Things and direct-to-device capabilities, underscoring the competition for connected-device applications.

IRDM's Mixed Signals Temper the Rally CaseThe stock's gains and growth initiatives support a constructive long-term view, but the valuation, earnings pressure and deal-related uncertainties limit the case for chasing the three-month rally.

IRDM currently carries a Zacks Rank #3 (Hold), consistent with a balanced stance. Its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of F show that favorable characteristics are not broad-based. The weak Momentum and VGM scores suggest limited near-term confirmation for another sustained advance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Viatris to report Q2 results on Aug. 6 with revenue and EPS estimates of $3.68B and 62 cents, respectively.VTRS may see Developed and Emerging Markets growth, partly offset by the Indore import alert and competition.Viatris could benefit from cost-saving efforts, with gross margin expected to remain stable. Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter 2026 results on Aug. 6, before the opening bell.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.68 billion, while the same for earnings is pinned at 62 cents per share.

VTRS Q2 Earnings: Factors to ConsiderThe company reports under four segments based on geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (“JANZ”) and Greater China.

Developed Markets sales are expected to rise, though growth in North America may be tempered by the Indore manufacturing facility import alert. Solid growth in EpiPen, Creon and Viatris’ thrombosis portfolio is likely to have enabled it to partially absorb the anticipated competition for Dymista. Incremental revenues from new products, such as iron sucrose, are likely to have boosted the quarterly top line.

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024. The import alert affected 11 actively distributed products, including lenalidomide and everolimus. The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $2.18 billion.

Sales from Emerging Markets are expected to have experienced growth, driven by branded business in Turkey, Mexico and certain Asian markets. The generic business is likely to have seen growth due to the stabilization of supply for certain lower-margin ARB products. The Zacks Consensus Estimate for revenues from this geography is pegged at $558.5 million.

Viatris shares have surged 41.6% year to date against the industry’s 1.1% decline.

Image Source: Zacks Investment Research

Sales in JANZ are likely to have been adversely impacted by lower net sales of existing products in Japan and Australia due to government price reductions and additional competition. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $285.1 million.

Sales in Greater China might have increased due to strong growth across multiple channels, including e-commerce, retail and private hospitals, as a result of higher marketing and selling efforts. The Zacks Consensus Estimate for revenues from this geography is pegged at $631.7 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

The brand business comprises the majority of the company’s portfolio. Brand performance is likely to have benefited from strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.

However, the generics business is likely to have been negatively impacted by inspection at the Indore facility and competition for Wixela, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets, and slight volume growth in JANZ.

On the profitability front, gross margin is likely to have been stable. Total operating expenses in the second quarter of 2026 are likely to have declined as a result of the planned cost-saving initiatives.

VTRS’ Impeccable Earnings Surprise HistoryViatris’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.04%. In the last reported quarter, VTRS beat on earnings by 13.46%.

What Our Model Predicts for ViatrisOur proven model does not conclusively predict an earnings beat for VTRS 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. That is not the case here, as you will see below.

Earnings ESP:Viatris has an Earnings ESP of -0.81% as the Most Accurate Estimate of 61 cents per share is just shy of the Zacks Consensus Estimate of 62 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank:VTRS currently carries a Zacks Rank #4 (Sell).

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

Stocks to ConsiderHere are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2 at present.

Shares of ACAD have lost 4.1% year to date. The company’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 20.83%. Acadia is scheduled to report second-quarter results on Aug. 4, after market close.

Arcutis Biotherapeutics (ARQT - Free Report) has an Earnings ESP of +52.94% and a Zacks Rank #2 at present.

Shares of ARQT have lost 10.7% year to date. The company’s earnings beat estimates in three of the trailing four quarters but missed in the remaining quarter, delivering an average surprise of 42.78%. ARQT is scheduled to report second-quarter results on Aug. 5.

BridgeBio Pharma (BBIO - Free Report) has an Earnings ESP of +13.69% and a Zacks Rank #3 at present.

Shares of BBIO have risen 4.5% year to date. BridgeBio Pharma’s earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 18.94%.

Key Takeaways LRCX stock fell 15.6% in a month as chip-equipment peers also faced broad selling pressure.AI demand is lifting advanced packaging, HBM, etch and deposition equipment opportunities.Lam Research's Q4'26 revenues hit a record $6.72B, while non-GAAP EPS rose 37% to $1.82. Lam Research Corporation (LRCX - Free Report) shares have plunged 15.6% over the past month, underperforming the Zacks Computer and Technology sector’s 4.4% decline. At first glance, such a sharp decline may worry investors. However, Lam Research is not the only semiconductor equipment company experiencing selling pressure.

The entire wafer fabrication equipment space has been under pressure. Peers such as ASML Holding (ASML - Free Report) , Applied Materials (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) have also struggled during the same period. Shares of ASML Holding, Applied Materials and KLA Corporation have tanked 10%, 12.7% and 21.6%, respectively. This broad weakness suggests that investors are trimming exposure to semiconductor stocks across the board rather than losing confidence in Lam Research specifically.

Lam Research One-Month Price Return Performance
Image Source: Zacks Investment Research

The recent weakness stems from two key concerns. First, investors have started questioning whether hyperscalers' massive AI investments will generate enough returns to justify the spending. Second, semiconductor stocks enjoyed a strong rally earlier in 2026, pushing valuations higher and encouraging investors to lock in profits.

Even so, Lam Research's long-term story has not changed. The recent decline looks more like a sentiment-driven correction than a deterioration in the company's business. That makes the stock worth buying at current levels.

AI Chip Demand Continues to Power Lam Research's GrowthLam Research plays a critical role in the AI semiconductor supply chain. Rather than designing chips, it provides the advanced manufacturing equipment used by foundries such as Taiwan Semiconductor Manufacturing and Samsung to produce leading-edge semiconductors.

This gives Lam Research direct exposure to one of the strongest technology trends today. As AI chips become more advanced, demand for technologies such as advanced packaging, high-bandwidth memory (HBM) and next-generation chip architectures continues to rise. All of these require sophisticated etch and deposition equipment, where Lam Research has built a strong competitive position.

The company is also expanding its technology leadership. Its ALTUS ALD system improves manufacturing efficiency through molybdenum-based deposition, while its Aether platform enables customers to build smaller, denser and more powerful chips. As semiconductor complexity increases, these innovations should become even more valuable.

Management expects advanced packaging revenues to grow more than 70% in 2026 after posting strong growth in 2025. Emerging technologies like backside power distribution and dry-resist processing are also expected to create new growth opportunities over the coming years.

The demand trends are already showing up in the numbers. Lam Research has generated more than $5 billion in revenues for five straight quarters, including a record $6.72 billion in the fourth quarter of fiscal 2026. This reflects healthy spending by the world's leading chip manufacturers despite broader market concerns.

LRCX’s Strong Financial Results Reinforce the Bull ThesisLam Research is not just benefiting from AI demand, it is performing exceptionally well.

In the fourth quarter of fiscal 2026, revenues increased 30% year over year to $6.72 billion, beating the Zacks Consensus Estimate by 0.7%. Growth was driven by strong performance across both its Systems business and Customer Support Business Group. Non-GAAP earnings climbed 37% year over year to $1.82 per share, surpassing estimates by 7.7%.

Lam Research also delivered stronger profitability despite geopolitical uncertainty, tariffs and a challenging macro environment. Non-GAAP gross margin expanded 170 basis points year over year to 35%, supported by better pricing, operating efficiencies, scale benefits and a favorable product mix. Meanwhile, non-GAAP operating margin improved 400 basis points to 38.4%, aided by higher gross margins, a broader manufacturing footprint across Asia and disciplined cost management.

These results reinforce the view that Lam Research's growth is not solely dependent on short-term AI enthusiasm. The company continues to improve its operations while delivering strong revenue and earnings growth.

Wall Street also expects the momentum to continue. The Zacks Consensus Estimate projects fiscal 2027 and 2028 revenues to increase 25.4% and 31.1%, respectively. Earnings per share are expected to grow 53% in fiscal 2027 and another 29% in fiscal 2028, highlighting the company's attractive long-term earnings potential.

Strong AI Tailwinds Support Lam Research's Higher MultipleFrom a valuation perspective, Lam Research does not look cheap. The stock carries a Zacks Value Score of F, indicating a premium valuation.

Based on forward 12-month earnings, LRCX trades at 32.04X, well above the sector average of 20.74X. While that premium may appear expensive at first, it reflects the company's strong earnings outlook, AI-driven growth opportunities and consistent execution.

Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

Among its closest peers, Lam Research trades at a higher multiple than ASML Holding but remains cheaper than both KLA Corporation and Applied Materials. ASML, KLA and Applied Materials currently trade at forward 12-month P/E multiples of 30.94X, 33.08X and 34.02X, respectively. This suggests Lam Research's valuation remains reasonable when viewed against its direct competitors.

Investment Verdict: Buy Lam Research SharesThe recent sell-off appears to be driven more by market sentiment than by any weakness in Lam Research's business. The company remains one of the biggest beneficiaries of the ongoing AI infrastructure buildout, while its leadership in etch and deposition equipment gives it a durable competitive edge.

The demand for advanced packaging continues to accelerate, and the company is introducing new manufacturing technologies to tap the opportunity. Its financial performance remains strong. Combined with healthy earnings growth and solid execution, these factors strengthen the long-term investment case.

Currently, Lam Research sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Wheaton Precious Metals to report Q2'26 results on Aug. 6, with sales and earnings expected to grow y/y.WPM has a positive 3.20% Earnings ESP, while estimates point to higher prices boosting results.Wheaton Precious Metals projects stronger 2026 output, supported by Antamina and new development projects. Wheaton Precious Metals (WPM - Free Report) is scheduled to report second-quarter 2026 results on Aug. 6, after market close.

The Zacks Consensus Estimate for Wheaton Precious Metals’ second-quarter sales is pegged at $877 million, indicating 74% growth from the prior-year quarter’s reported figure. The consensus mark for WPM’s earnings is pegged at $1.11 per share, suggesting year-over-year growth of 76.1%. Earnings estimates have moved down 7.5% in the past 60 days.

Image Source: Zacks Investment Research

WPM’s Earnings Surprise HistoryWheaton Precious Metals’ earnings have outpaced the consensus estimate in the trailing four quarters, the average surprise being 14.1%.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for Wheaton Precious MetalsOur model predicts an earnings beat for Wheaton Precious Metals 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 precisely the case here.

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

Earnings ESP: Wheaton Precious Metals has an Earnings ESP of +3.20%.

Zacks Rank: WPM currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped WPM’s Q2 PerformanceWheaton Precious Metals is likely to have delivered a strong performance in the first quarter of 2026, building on the robust momentum seen in the first quarter of the year.

Wheaton Precious Metals projects an attributable production of 860,000-940,000 gold-equivalent ounces (GEOs) for 2026. The mid-point of the range indicates a 30% year-over-year increase in production. This outlook reflects higher attributable production from Antamina, the start-up of several development projects (Blackwater, Goose, Mineral Park and Platreef) and a stable forecast for Salobo production.

Our model projects WPM’s total attributable production of 201,920 GEOs for the second quarter of 2026, indicating a 6.2% year-over-year increase. The production figure includes attributable gold production of 98,995 ounces (a 6.6% year-over-year increase).

Our model projects a 0.6% year-over-year rise for the second quarter at Salobo, attributable to gold production of 69,815 ounces. Gold production at Sudbury is expected to be 0.2% higher year over year at 5,416 ounces. At Constancia, attributable gold production is projected to be 82.9% lower at 1,573 ounces due to decreased gold grades.

Our model projects WPM’s second-quarter gold sales volume of 97,181 ounces, indicating an 1.8% year-over-year dip. Gold realized prices are expected to be $4,534 per ounce, suggesting a 36.7% year-over-year rise.

The company’s second-quarter 2026 total gold sales are projected at $441 million, implying a 34.2% year-over-year rise. Gold sales are expected to have contributed 52% to WPM’s total sales.

Our model projects 5.88 million ounces of total attributable silver production (up 5.1% year over year). A 18.9% rise at Penasquito is expected to offset the 29.4% decline in Constancia and a 15.3% year-over-year decrease at Antamina.

Wheaton Precious Metals’ silver sales volume is expected to be 5.27 million ounces. Silver realized prices are expected to be $73.49 per ounce, suggesting 115.8% year-over-year growth. This is likely to lead to silver sales of $387 million, indicating a 133.7% year-over-year rise. Silver sales are expected to contribute 45.7% to the total sales.

Attributable production of palladium is projected at 2,548 ounces (up 4.6% year over year), while production for cobalt is expected at 799 thousand pounds (up 23.5%). Other metals’ production is projected at 5,099 GEOs for the second quarter.

Our model projects Wheaton Precious Metals to sell 162,858 GEOs in the second quarter, 10.9% lower than the prior-year quarter’s actual. Overall, the company’s second-quarter results are expected to reflect the gains of higher gold and silver prices.

Wheaton Precious Metals Stock’s Price PerformanceWPM shares have gained 17.4% over the past year compared with the industry's 39% growth.

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Other Stocks to ConsiderHere are some other stocks with the right combination of elements to also post an earnings beat in their upcoming releases.

Avient Corporation (AVNT - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 6, has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for earnings for Avient for the second quarter of 2026 is 89 cents per share, indicating an 11.2% year-over-year increase. Avient has a trailing four-quarter average earnings surprise of 2.1%.

Materion (MTRN - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 5, has an Earnings ESP of +5.39% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Materion’s earnings for the second quarter of 2026 is pegged at $1.55 per share, indicating 13% growth from the year-ago quarter's reported figure. Materion has a trailing four-quarter average earnings surprise of 4.96%.

Albemarle Corporation (ALB - Free Report) , scheduled to release second-quarter earnings on Aug. 5, currently has an Earnings ESP of +2.21% and a Zacks Rank #3.

The Zacks Consensus Estimate for Albemarle’s earnings for the second quarter is pegged at $3.35, indicating a surge from earnings of 11 cents reported in the year-ago quarter. Albemarle has a trailing four-quarter average earnings surprise of 74%.

Key Takeaways IQV reported Q2 earnings and revenue above estimates, driven by Commercial and R&D Solutions growth.IQV raised 2026 revenue and earnings guidance after record R&D bookings and a larger contracted backlog.IQV trades below its five-year EV/EBITDA median, while leverage and recent gains raise the execution bar. IQVIA Holdings Inc. (IQV - Free Report) shares climbed 13% in a week as investors weighed better-than-expected quarterly results, stronger bookings and a raised full-year outlook.

The move reflects improving operating momentum, but its durability depends on whether bookings convert into revenue and earnings while leverage remains elevated. After a 29% gain in six months, further upside may require consistent execution rather than another short-term rerating.

IQVIA’s Rally Follows a Strong Earnings BeatSecond-quarter adjusted earnings increased 12.1% year over year to $3.15 per share. Revenues rose 8.7% to $4.36 billion, supported by growth in both Commercial Solutions and Research & Development Solutions.

Earnings exceeded the Zacks Consensus Estimate by 4.3%, while revenues topped the consensus mark by 1.6%. Those results strengthened the investment case, although they should be viewed as one contributor to the weekly price move rather than its sole cause.

IQVIA’s Bookings Improve Revenue VisibilityResearch & Development Solutions generated record net new bookings of $3.15 billion, up 19% year over year, with a book-to-bill ratio of 1.22. Trailing-12-month net new bookings reached $11.3 billion, up 13%.

Contracted backlog totaled $34.2 billion at June 30, with about $9.2 billion expected to convert into revenue over the next 12 months. That pipeline improves visibility into future clinical research activity, though conversion timing remains important.

ICON plc (ICLR - Free Report) , another clinical research organization, reported second-quarter net business wins of $3.12 billion and a 1.51 book-to-bill ratio. Fortrea Holdings Inc. (FTRE - Free Report) also competes in outsourced clinical development, making peer booking trends relevant when judging whether IQVIA’s momentum is company-specific or industrywide.

IQVIA’s Raised Outlook Supports MomentumIQVIA raised its 2026 revenue guidance to $17.28 billion-$17.48 billion from $17.15 billion-$17.35 billion. Adjusted earnings guidance increased to $12.80-$13 per share from $12.65-$12.95.

The new revenue midpoint implies 6.5% growth, compared with 5.8% previously. Management incorporated roughly 100 basis points of stronger organic growth and 50 basis points of additional acquisition contribution, partly offset by an 80-basis-point unfavorable change in foreign exchange assumptions.

IQVIA’s Valuation May Limit Further UpsideIQVIA trades at 13.02X trailing enterprise value to EBITDA, below its five-year median of 14.14X. That discount suggests the stock is not stretched relative to its own history and Industry.

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The comparison is less reassuring after the recent rally. Shares have advanced 29% in six months, while net debt stood at $14.09 billion and the net leverage ratio was 3.59. Additional appreciation may therefore depend on earnings growth, cash generation and steady backlog conversion.

IQVIA’s Mixed Scores Temper the RallyThe operating picture supports continued interest, but the weekly surge should not be treated as an unqualified bullish signal. Bookings and guidance improved, while leverage and the size of the recent advance raise the execution bar.

IQVIA currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of B and VGM Score of B add support for investors focused on valuation and a blended style profile.

The Growth Score of C and Momentum Score of C are less decisive. Together, the scores suggest that the stock’s prospects are balanced, with further gains likely to depend on sustained operating progress rather than the recent price move alone.

Wall Street expects a year-over-year increase in earnings on higher revenues when Super Micro Computer (SMCI - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 11. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis server technology company is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +65.9%.

Revenues are expected to be $11 billion, up 91.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.71% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Super Micro?For Super Micro, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -15.56%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Super Micro will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Super Micro would post earnings of $0.63 per share when it actually produced earnings of $0.84, delivering a surprise of +33.33%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Super Micro doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Fortive's second-quarter core revenues rose 6.7%, with pricing and volume both contributing.Adjusted EBITDA climbed 12% to $323.1 million, as margin expanded 110 basis points to 29.5%.Free cash flow jumped 50.3%, but leverage, product mix and valuation favor a patient approach. Fortive Corporation (FTV - Free Report) is entering the second half of 2026 with faster organic growth, wider adjusted EBITDA margins and stronger cash generation. Those gains improve the investment case after the separation of its former Precision Technologies businesses.

The question is whether the operating progress offers enough upside at the current price. Product mix, leverage and a valuation close to Fortive’s historical norm argue for a more selective approach.

Fortive’s Core Growth Strengthens the Bull CaseSecond-quarter core revenues increased 6.7%, taking first-half core growth to 6.1%. Pricing and volume both contributed, showing that the improvement was not dependent on a single lever.

Intelligent Operating Solutions delivered 7.4% core growth, supported by professional instrumentation, facilities and asset lifecycle solutions and gas detection. Advanced Healthcare Solutions grew 5.3% as consumables, services, software and modest capital-equipment demand supported the segment.

FTV’s Margin Gains Face Mix PressureAdjusted EBITDA rose 12% to $323.1 million, while the adjusted EBITDA margin expanded 110 basis points to 29.5%. Operating leverage, productivity and structural cost savings more than offset growth investments and higher employee costs.

The quality of the margin improvement was uneven. Adjusted gross margin fell 100 basis points to 63% because of product mix, while the healthcare segment’s adjusted EBITDA margin contracted 80 basis points to 26.1%.

Fortive’s Cash Flow Supports Capital ReturnsQuarterly free cash flow climbed 50.3% to $270.6 million. Trailing-12-month free cash flow reached $1.04 billion, giving Fortive meaningful capacity to fund organic investment and return capital.

The company repurchased about $200 million of stock in the second quarter. Buybacks over the preceding four quarters totaled roughly $2 billion and covered about 38 million shares, or nearly 11% of diluted shares outstanding at the start of that period.

FTV’s Valuation Leaves Less Room for ErrorFortive trades at 18.9X forward earnings, below 25.6X for its subindustry, 20.7X for its sector and 20.3X for the S&P 500. The discount is useful, but the stock remains close to its five-year median multiple of 19.4X rather than at an unusually low historical valuation.

Keysight Technologies (KEYS - Free Report) provides design, simulation and test solutions across communications, aerospace, automotive and semiconductor markets. AMETEK, Inc. (AME - Free Report) is a diversified producer of electronic instruments and electromechanical devices, making both relevant comparison points for Fortive’s instrumentation and industrial technology exposure.

Fortive’s Leverage and Execution Risks MatterFortive ended the quarter with $3.53 billion of gross debt and net leverage of 2.4 times adjusted EBITDA. Refinancing included $600 million of 4.75% notes due 2031 and $500 million of 5.25% notes due 2036, contributing to higher interest expense.

Additional risks include uncertain tariff-refund timing, uneven regional demand, healthcare product mix and bolt-on integration. These factors could limit further margin expansion or reduce flexibility if commercial conditions weaken.

FTV’s Signals Favor Patience With Selective OptimismFortive’s improving growth, margin and cash profile supports a constructive view, but the valuation and execution risks leave limited room for disappointment. Current holders have reasons to stay patient, while prospective buyers may prefer a more favorable entry point.

The stock carries a Zacks Rank #2 (Buy), and the Zacks Consensus Estimate for current-fiscal-year earnings has risen 1.5% in the past month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Momentum Score of B reinforces the near-term case, but the Value Score of C, Growth Score of D and VGM Score of D point to a less balanced setup. The signals support selective optimism rather than an unqualified bullish stance.

Key Takeaways Columbia Banking Q2 NIM widened to 3.93% and expects it to reach or exceed 4% in the third quarter. COLB is redirecting capital to higher-return loans while allowing inherited transactional balances to run off.COLB returned capital through dividends and share buybacks, but higher expenses temper the near-term outlook. Columbia Banking System, Inc. (COLB - Free Report) is benefiting from a wider net interest margin (NIM), rising fee income and sustained capital returns. Those strengths are being offset by a larger expense base, planned balance-sheet contraction and uneven credit trends.

The central question is whether improving core profitability and a modest valuation discount justify accepting near-term execution risks. For now, the evidence favors patience rather than a new position.

COLB’s Margin Recovery Supports Core EarningsNIM reached 3.93% in the second quarter of 2026, up 18 basis points year over year. The cost of interest-bearing deposits fell 56 basis points to 1.96%, while the cost of total deposits declined to 1.32%.

Management expects the margin to reach or exceed 4% in the third quarter. Lower funding costs, asset repricing and a shift toward higher-return relationship loans should support core earnings, although competitive deposit pricing could limit further improvement.

Columbia Banking Faces a Larger Cost BaseSecond-quarter non-interest expenses rose 34.9% year over year to $375 million. Salaries and employee benefits increased 26.5%, occupancy and equipment costs advanced 38.3%, and intangible amortization climbed 46.2%.

Pacific Premier acquisition synergies were essentially complete by June 30, with savings exceeding the original target by $5 million. Even so, management expects third-quarter expenses excluding core deposit intangible amortization of $330-$335 million. Faster operating leverage depends on those savings outpacing ongoing compensation, occupancy and reinvestment costs.

COLB’s Loan Remix Trades Growth for QualityColumbia is running off inherited transactional loans rather than rebuilding that portfolio. Balances declined by about $270 million in the second quarter, and management expects reductions of roughly $250 million or slightly more per quarter over the next several quarters.

Capital is being redirected toward commercial and industrial loans and owner-occupied commercial real estate, which can generate deposits and fee income. Commercial loans, including owner-occupied real estate, grew at a 5% annualized rate. The trade-off is restrained total loan growth until around mid-2027.

Columbia Banking’s Valuation Offers a Mixed SignalCOLB trades at 9.96X forward 12-month price-to-earnings, below the industry’s 10.66X but above its five-year median of 9.11X. The discount is modest rather than decisive, especially with the 2026 earnings estimate recently revised lower.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

COLB trades at a discount to its peer, East West Bancorp (EWBC - Free Report)  based on its P/E multiple of 12.05X, while trading at a slight premium to Zions Bancorporation (ZION - Free Report) , which has a P/E multiple of 9.95X.

COLB’s Capital Returns Strengthen the CaseCapital remains a clear support. Columbia ended June 30, 2026 with a common equity Tier 1 ratio of 11.6% and a total risk-based capital ratio of 13.4%. The company pays quarterly dividend of 37 cents per share. In the past five years, COLB hiked its dividend three times and has a dividend yield of 4.7%. East West Bancorp has a dividend yield of 2.4% while Zions Bancorporation has a dividend yield of 2.6%.

The company also repurchased 6.6 million shares for $199 million in the second quarter and guided to $150-$200 million of third-quarter buybacks. Those returns improve per-share economics, but preserving flexibility matters if credit costs or post-integration pressures stay elevated.

COLB’s Weak Ratings Favor a Wait-and-See ApproachThe bottom line is that margin recovery, fee growth and capital returns improve the longer-term case, but the expense burden, loan runoff and competitive pricing limit near-term upside.

Over the past six months, COLB shares gained 3.4%, lagging the S&P 500 as well as East West Bancorp and Zions Bancorporation.

Price Performance

Image Source: Zacks Investment Research

COLB currently carries a Zacks Rank #5 (Strong Sell). Its Value Score of C suggests the valuation is only middle-of-the-pack, while the Growth Score of D, Momentum Score of D and VGM Score of D point to weak near-term support across key investment styles. The combination favors a wait-and-see approach until earnings revisions and operating leverage improve.

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

Shares of Coherent COHR surged on Tuesday after a report said the Trump administration is drafting restrictions on imports of new Chinese data center components, a move that could benefit US optical networking suppliers as cloud providers seek alternative vendors.

Coherent shares climbed as much as 12% in trading following the Reuters report.

Fellow optical networking company Lumentum gained more than 5%, while Applied Optoelectronics also rallied. Meanwhile, Amazon.com shares fell more than 1.7% in trading.

According to Reuters, the Federal Communications Commission (FCC) is preparing a proposal that would prohibit imports of new Chinese optical transceivers, components that enable high-speed data transmission across fiber-optic cables inside AI data centers.

The report said the proposal could be published later this year, although it has not been finalized and could still be modified or withdrawn.

The proposed restrictions are aimed at protecting US AI infrastructure from potential cybersecurity risks.

A ban on new Chinese optical transceivers could force American cloud providers, including Amazon Web Services, to source more equipment from domestic manufacturers such as Coherent and Lumentum.

Reuters reported that the proposed restrictions would likely target Zhongji Innolight, one of the world's largest optical transceiver manufacturers. The company was added to the Pentagon's list of alleged Chinese military-backed companies in June.

The report said the restrictions are intended to reduce the risk of Chinese-made networking hardware being used to steal data, install malware or disrupt operations at US AI data centers.

China's embassy in Washington criticized the proposed measures and urged the United States to stop targeting Chinese companies.

"China will take all necessary measures in response to any action that causes material harm to its interests," it added.

Coherent has already strengthened its position in the AI infrastructure supply chain through partnerships with Nvidia.

The chipmaker signed multi-year agreements with both Coherent and Lumentum in March, including billions of dollars in procurement commitments and a $2 billion investment in each company to secure production capacity for next-generation co-packaged optics technology.

The agreements position both companies as strategic suppliers for the growing AI data center market, where demand for high-speed optical networking equipment continues to increase.

Supply chain implications remain in focusAccording to Counterpoint Research, Zhongji Innolight controls approximately 27% of the global data center transceiver market.

Reuters reported that Coherent and Lumentum offer competing technologies but currently lack the manufacturing scale to fully replace Chinese suppliers. Innolight also generates about 90% of its revenue outside China.

The FCC has previously introduced similar restrictions targeting Chinese drones, routers, robots and power inverters through its Covered List framework.

The report said that the agency is considering a similar approach for optical transceivers by banning imports of new Chinese models while exempting many non-Chinese suppliers.

While the proposal remains under review, investors responded positively to the possibility that tighter restrictions on Chinese networking equipment could increase demand for US-based optical component manufacturers, sending Coherent shares sharply higher.

Key Takeaways Wendy's is expected to benefit from Project Fresh, menu upgrades and digital sales growth.WEN may see support from international expansion and AI-powered app enhancements.Wendy's faces traffic, inflation and labor cost pressures ahead of its Q2 earnings report. The Wendy's Company (WEN - Free Report) is scheduled to report second-quarter 2026 results on Aug. 7, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 20%.

WEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.6%.

WEN’s Q2 EstimatesThe Zacks Consensus Estimate for earnings is pegged at 16 cents per share, indicating a 44.8% decline from a year ago.

The consensus mark for revenues is pinned at $564.6 million, implying a 0.7% increase from the year-ago quarter.

Factors to Note Ahead of WEN’s Q2 ResultsWendy's second-quarter 2026 revenues are likely to have benefited from the continued rollout of its Project Fresh turnaround strategy. The company strengthened its value proposition through the Biggie Deals platform, upgraded the core hamburgers with new buns and improved condiments, and introduced an enhanced spicy chicken sandwich. These menu improvements, along with a stronger promotional calendar featuring the Minions & Monsters collaboration and the planned return of the Pretzel Bacon Pub Cheeseburger, are expected to have supported customer traffic and average spending.

The top line is also likely to have been aided by growth in digital sales and continued international expansion. AI-powered recommendations in the mobile app, improved digital capabilities and better restaurant execution are expected to have enhanced customer engagement. Expansion in markets like the Philippines and Mexico, coupled with the new China development agreement, is also expected to have provided support to systemwide sales growth.

However, revenues are likely to have been pressured by continued weakness in U.S. traffic, particularly among lower-income consumers, soft breakfast demand and the impact of restaurant footprint and operating-hour optimization. Management also projected a mid-single-digit decline in global systemwide sales for the second quarter before expecting a recovery in the back half of the year.

Wendy's second-quarter 2026 bottom line is likely to have been pressured by persistent commodity inflation, particularly elevated beef costs, along with labor inflation. The company is also likely to have incurred higher investments in product quality, brand revitalization, expanded field support teams and digital capabilities under its Project Fresh strategy. Additionally, lower franchise royalty revenues and the financial impact of restaurant system optimization initiatives are anticipated to have weighed on profitability, although these pressures are likely to have been partly offset by labor efficiencies and a higher average check.

What Does the Zacks Model Unveil for WEN?Our proven model doesn’t predict an earnings beat for Wendy’s 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.

Earnings ESP: WEN has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: WEN currently has a Zacks Rank #4 (Sell).

Stocks Poised to Beat on EarningsHere are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +20.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.

Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.

In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.8%.

Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.

In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.

3 Stocks to Own If Gas Prices Keep RisingDiamondback Energy NASDAQ: FANG said its second-quarter operational performance and view of global oil inventories support a potential path toward low-single-digit organic production growth in 2027, while management emphasized it intends to retain flexibility amid commodity-market volatility.

Chief Executive Officer Kaes Van’t Hof said the company increased its production outlook by roughly 3% to 4% versus its original 2026 plan after responding to oil-price signals in March. Production is now approximately 4% above its level at the start of the year, he said.

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Insider Selling: CRWV, DELL & FANG See +$100M in 2026 Sales Looking ahead, Van’t Hof said Diamondback is weighing whether to maintain production at elevated third-quarter levels or grow from that base. At present, the company’s model supports low-single-digit organic growth while maintaining capital efficiency and operating five frac crews consistently through the year.

“Our bet is that these global inventories, including SPRs, are going to need to be refilled,” Van’t Hof said, referring to strategic petroleum reserves. He said oil and product inventories have been drawing down and that, absent permanent demand destruction, the market will need additional supply to meet global demand and replenish inventories.

Operations and Well Productivity Diamondback Sees Resilient Demand Despite Cautious GuidanceManagement highlighted continued operational improvements across well construction, targeting and completions. Van’t Hof described the company’s progress as a “stacked innovation” effort, citing incremental advances that have improved drilling and completion performance over time.

Chief Engineer Al Barkmann said Diamondback has used larger tubulars that allow more aggressive flowback, while changes in stimulation design, stage architecture, perforating and well targeting have contributed to recent well outperformance. Management said its objective is to maximize the combination of wells per section, production per well and low well costs to generate the highest net present value per section and acre.

The company also discussed completion efficiency. Chief Operating Officer Danny Wesson said Diamondback averaged more than 21 hours of pumping per day during the first full quarter of continuous pumping. While the company sees potential to continue improving, Wesson said maintenance requirements and the cost of equipment redundancy create practical tradeoffs.

Diamondback is targeting average completion performance of 5,000 feet per day across its crews, after some pads surpassed that level, according to Wesson. The company is also using electric frac fleets, which management said have helped mitigate fuel-cost inflation.

On oilfield service costs, Wesson said Diamondback is seeing some inflation in consumables, particularly casing in the second half of 2026. He estimated the impact at slightly more than 1% of total well costs, adding that the company expects to offset much of that pressure through efficiency gains. Management said a quarterly capital run rate of roughly $1 billion to slightly more than $1 billion could be reasonable to hold production flat based on current conditions.

Gas, Power and Data Center Strategy Van’t Hof said improved gas pricing at Waha during July, following the start-up of new pipelines, provided near-term relief after weak second-quarter conditions. He said Diamondback views natural gas as an additive component of its oil-focused strategy and intends to secure more contracted transportation capacity to Gulf Coast markets, where gas demand could come from LNG exports, power generation and data centers.

The company said gas production has exceeded expectations. Wesson attributed much of that outperformance to improved local gas marketing, including maturing gathering and processing systems, additional redundancy and strategic split connections. Barkmann said a growing role for Barnett development could cause gas volumes to increase further over time.

Chief Financial Officer Jere Thompson provided an update on a proposed power project at Diamondback’s approximately 30,000-acre Bryant Ranch site near Midland, Texas. The project is being developed with an independent power producer and is intended to provide a bridge-to-grid power solution using behind-the-meter reciprocating units.

Management said the site has distributed generation, remediated land, and dedicated natural gas and water access. The initial phase could deliver first gas as soon as the second half of 2027, according to Thompson. Diamondback is also pursuing grid-connected power as early as 2028 through ERCOT’s Batch Zero process. The company was awaiting ERCOT’s determination on project eligibility following an August 20 meeting. Thompson said Diamondback has set aside 200 million to 250 million cubic feet per day of natural gas for the project. He described a potential in-basin feed-gas solution as the project’s largest value driver, with additional possible benefits from Diamondback’s 30% interest in water infrastructure company Deep Blue and potential land-related proceeds.

Management said it would provide a broader update after signing definitive documentation with a hyperscale customer. Van’t Hof stressed that Diamondback does not plan to become a power or data center operator, but intends to provide molecules, surface acreage, water and industry knowledge.

Capital Allocation and Balance Sheet Van’t Hof said Diamondback has moved away from a formulaic minimum free-cash-flow return commitment in favor of a more flexible capital-allocation approach. The company repurchased some shares in the second quarter and continued buying stock in the third quarter, he said, while also reducing net debt by $1.6 billion during the second quarter.

Van’t Hof estimated that the debt reduction represented $5.60 per share of value moving from the debt side of the capital structure to equity. He said Diamondback intends to use buybacks opportunistically rather than pursue procyclical repurchases.

The company also plans to build enough cash to address debt callable in 2026 and prepare for 2027 maturities, while potentially accumulating cash for maturities due between 2029 and 2032. Van’t Hof said cash accumulation is not intended to fund large cash acquisitions.

Barnett, EOR and Portfolio Development Diamondback said it continues to expand and consolidate its Barnett position, including through leasing activity with Double Eagle. The company’s first four-well Spanish Trail pad has been drilled and is expected to be completed in coming months. Management said it expects full-section results around year-end or early 2027.

Van’t Hof said Barnett drilling costs are approaching $400 per foot, with some wells already below that level. The company expects to achieve costs around $400 per foot or less consistently as it builds scale in the play.

The company is also testing surfactant-based enhanced oil recovery techniques. Barkmann said Diamondback completed a 12-well project during the quarter and was flowing back the wells, with initial results described as positive. Management said results have varied widely across earlier work, with some wells showing no uplift and others producing three to four times more than before treatment.

Van’t Hof said the average earlier result involved wells producing roughly 150 to 200 barrels per day gaining an additional 100 to 150 barrels per day, though the company is still determining which rock types and reservoir conditions respond best. Diamondback is also incorporating the approach into new-well pads, with control and surfactant-treated portions of certain sections.

Management said it sees artificial intelligence and automation as early-stage tools for improving artificial lift optimization, reducing downtime and lowering operating costs. The company’s lease operating expense fell below $6 per barrel during the quarter, primarily because of higher production volumes, though management said it expects costs to remain around that level or somewhat higher in the second half.

About Diamondback Energy (NASDAQ:FANG)Diamondback Energy, Inc NASDAQ: FANG is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.

Diamondback's activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.

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

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Key Takeaways Old Dominion's Q2 earnings rose 32.3% as revenues climbed 10.4% despite weaker freight volumes. ODFL's pricing gains offset declines in LTL tons per day and daily shipments in the second quarter. ODFL held $283.9 million in cash against $20 million in current debt maturities, supporting flexibility. Old Dominion Freight Line (ODFL - Free Report) combines improving earnings, disciplined pricing and exceptional margins with a valuation that leaves limited room for disappointment. Investors must decide whether strengthening fundamentals justify paying a premium for the stock.

ODFL's Earnings Momentum StrengthensSecond-quarter earnings rose 32.3% to $1.68 per share and beat the consensus estimate by 10.5%. Revenues increased 10.4% to $1.55 billion as stronger yields offset weaker freight volumes.

Old Dominion Still Trades at a PremiumODFL trades at 33.77 times forward 12-month earnings, above the transportation sector and S&P 500 multiples. The valuation is also close to its five-year median of 33.81 times, suggesting investors already expect meaningful execution. ODFL's valuation is higher than fellow truck operators, ArcBest Corporation (ARCB - Free Report) and Covenant Logistics Group (CVLG - Free Report) .

ODFL's Pricing Power Offsets Volume WeaknessLTL revenue per hundredweight increased 15.2%, while the measure excluding fuel surcharges rose 5.5%. That pricing strength helped counter a 4.1% decline in LTL tons per day and a 5.7% drop in daily shipments.

Old Dominion's Balance Sheet Adds FlexibilityODFL ended the second quarter with $283.9 million in cash and only $20 million in current debt maturities. Its financial position supports capital investment, dividends and share repurchases despite continued freight-market uncertainty.

ODFL's Signals Favor Momentum Over ValueODFL currently sports a Zacks Rank #1 (Strong Buy), which supports a favorable near-term earnings-revision outlook, while the Momentum Style Score of A reinforces the positive setup. However, the Value Score of F, Growth Score of C and VGM Score of D highlight the trade-off between operating quality and a demanding valuation. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Middleby (MIDD - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on August 11, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis food preparation equipment company is expected to post quarterly earnings of $2.28 per share in its upcoming report, which represents a year-over-year change of -3%.

Revenues are expected to be $836.82 million, down 14.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.23% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Middleby?For Middleby, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.37%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Middleby will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Middleby would post earnings of $1.94 per share when it actually produced earnings of $2.16, delivering a surprise of +11.34%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Middleby doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Manufacturing - General Industrial industry, Helios Technologies (HLIO - Free Report) , is soon expected to post earnings of $0.8 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +35.6%. This quarter's revenue is expected to be $230.36 million, up 8.4% from the year-ago quarter.

The consensus EPS estimate for Helios Technologies has been revised 4.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.84%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Helios Technologies will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

IPG Photonics (IPGP - Free Report) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.3 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +45.00%. A quarter ago, it was expected that this high-powered laser maker would post earnings of $0.32 per share when it actually produced earnings of $0.29, delivering a surprise of -9.38%.

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

IPG, which belongs to the Zacks Lasers Systems and Components industry, posted revenues of $278.58 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $250.72 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

IPG shares have added about 21.8% since the beginning of the year versus the S&P 500's gain of 11%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for IPG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $277.13 million in revenues for the coming quarter and $1.66 on $1.11 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Lasers Systems and Components is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Computer and Technology sector, Inseego (INSG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This holding company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -250%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Inseego's revenues are expected to be $40.1 million, down 0.3% from the year-ago quarter.

DigitalOcean Holdings, Inc. (DOCN) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Radu Patrichi
Padmanabhan Srinivasan - CEO & Director
Matt Steinfort - Chief Financial Officer

Conference Call Participants

Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Jason Ader - William Blair & Company L.L.C., Research Division
Mark Zhang - Citigroup Inc., Research Division
Wamsi Mohan - BofA Securities, Research Division
Sanjit Singh - Morgan Stanley, Research Division
Thomas Blakey - Cantor Fitzgerald & Co., Research Division
Jackson Ader - KeyBanc Capital Markets Inc., Research Division
Radi Sultan - UBS Investment Bank, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the DigitalOcean Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Radu Patrichi, Head of Investor Relations. Radu, please go ahead.

Radu Patrichi

Thank you, and good morning. Thank you all for joining us today to review DigitalOcean's Second Quarter 2026 Results. Joining me on the call today are Paddy Srinivasan, our Chief Executive Officer; and Matt Steinfort, our Chief Financial Officer.

For those of you following along, an accompanying slide presentation is available on the webcast. Before we begin, let me remind you that certain statements made on today's call may be considered forward-looking, which reflect management's best judgment based on currently available information. Our actual results may differ materially from those projected in these forward-looking statements, including our financial outlook. I direct your attention to the risk factors contained in our SEC filings as well as those referenced in today's press release that is posted on our website.

DigitalOcean expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements made today. Additionally, non-GAAP financial measures will be discussed on this conference call. Reconciliations to the most comparable GAAP financial measures can be

Golub Capital BDC NASDAQ: GBDC reported improved fiscal third-quarter results for the period ended June 30, 2026, as lower realized and unrealized losses offset continued credit stress across the direct-lending market.

Adjusted net income was $0.22 per share, compared with an adjusted loss of $0.18 per share in the preceding quarter. Adjusted net investment income remained unchanged sequentially at $0.34 per share, while adjusted net realized and unrealized losses narrowed to $0.12 per share from $0.52 per share in the prior quarter.

Chief Executive Officer David Golub described the performance as “much better than last quarter, not as good as we’d like, and better than it looks.” He said the quarter’s losses were primarily related to a small number of junior debt and equity investments rather than the company’s core debt portfolio.

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Income, NAV and Distribution Adjusted net investment income of $0.34 per share translated to an annualized adjusted NII return on equity of 9.5%, according to the company. The company paid a $0.33-per-share distribution during the quarter, and its board declared another $0.33-per-share distribution for the fourth fiscal quarter of 2026.

Net asset value per share declined to $14.25 at June 30 from $14.35 at March 31. The company said net investment income fully covered the quarterly distribution, while share repurchases contributed $0.01 per share of NAV accretion. Net realized and unrealized losses reduced NAV by $0.12 per share.

Investment income yield increased about 20 basis points sequentially to 9.9% on an annualized basis. Chief Operating Officer Tim Topicz said the increase reflected stable portfolio spreads and reference rates, as well as some accelerated fee recognition and discount accretion associated with loan payoffs.

GBDC’s annualized borrowing cost rose about 10 basis points to 5.3%, producing an annualized net investment spread of 4.6%. Topicz said the company’s borrowing cost remained among the lowest in the listed BDC peer group.

Credit Performance and Portfolio Activity The company said approximately 87% of its portfolio at fair value remained in its two highest internal performance-rating categories. Non-accrual investments rose slightly to 1.9% of investments at fair value, with the number of non-accrual positions increasing to 20 from 19 in the prior quarter.

Topicz said approximately $0.08 per share of unrealized losses came from markdowns on junior debt and equity positions in two portfolio companies that were taken to non-accrual status or remained on non-accrual during the quarter. The company also recorded approximately $0.04 per share of net realized losses, principally related to the restructurings of RWAM Holdco and Dolphis Meig. Those realized losses were more than offset by reversals of unrealized losses in the same investments, according to management.

GBDC also recognized $4 million of net realized gains from the exit of equity investments in two portfolio companies.

At June 30, the company’s portfolio totaled $8.2 billion across 424 borrowers and 51 industry subsectors. Its top 10 investments accounted for 13% of the portfolio, while software remained its largest industry exposure at 26%.

During the quarter, GBDC made $13 million in new investment commitments, reflecting slow repayments and management’s preference for accretive share repurchases. Of those commitments, 94% were senior secured debt investments. New investments carried a weighted average rate of 8.9%, including a 5.2% weighted average spread.

Across Golub Capital, the investment team originated nearly $3 billion of commitments during the second calendar quarter. The firm closed on 1.5% of reviewed deals, with a weighted average loan-to-value ratio of roughly 45%, according to Senior Managing Director Rob Tuchscherer.

Software Review and AI Exposure Management said it completed a credit-by-credit re-underwriting of its software portfolio to assess potential disruption from artificial intelligence. The review considered factors including revenue models, product criticality, data moats, regulatory complexity and customer switching costs.

GBDC also retained a third-party consulting firm, at the manager’s expense, to assess product-displacement and end-user-workflow risks. The company’s internal assessment found that less than 10% of its software portfolio faced elevated AI disruption risk, while the consultant concluded that fewer than 3% faced elevated risk.

Golub said AI was not the sole factor behind challenged software credits, citing potential issues such as acquisition integrations. However, he said AI would continue to be a meaningful factor in separating stronger and weaker software companies.

Balance Sheet, Repurchases and Market Outlook GBDC ended the quarter with $4.6 billion of debt, $3.7 billion of net assets and net debt-to-equity leverage of 1.23 times, down slightly from the previous quarter. The company reported approximately $2 billion of liquidity, including unrestricted cash and undrawn revolver capacity.

In May, the company issued $500 million of five-year unsecured notes that were swapped to a rate of SOFR plus 218 basis points. After quarter-end, GBDC extended the maturity of its syndicated corporate revolver to July 2031. The facility retained about $2 billion of commitments and includes an accordion provision that could increase capacity to $3 billion.

During the quarter, GBDC repurchased 1.1 million shares at a weighted average price of $12.90 per share, which management said represented an approximately 10% discount to March 31 NAV. The Golub Capital Employee Grant Program Trust also bought about $31 million, or 2.4 million shares, for incentive compensation purposes. Golub Capital affiliates now hold roughly 8% of shares outstanding.

Looking ahead, Golub said the direct-lending market has become more lender-friendly since the start of the year, though private equity-backed M&A activity remained below normal levels. He said spreads on new deals were generally 25 to 50 basis points higher, with some improvement in terms and leverage levels.

Golub also said he expects elevated credit stress to remain an industrywide headwind and lead to greater dispersion among private-credit managers. He said the company expects increased loan repayments to give it more flexibility to pursue new investments while continuing share repurchases and maintaining leverage objectives.

About Golub Capital BDC (NASDAQ:GBDC)Golub Capital BDC NASDAQ: GBDC is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.

The company's core business activities center on originating and managing bespoke financing arrangements for U.S.

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

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Key Takeaways ARW is set to report Q2 2026 earnings on Aug. 6, with revenues expected to rise 24.67% year over year.Arrow Electronics expanded supplier ties, AI initiatives and Motorola Solutions distribution during Q2.ARW faces softer ECS sales guidance despite recovering components demand and ongoing share repurchases. Arrow Electronics (ARW - Free Report) is scheduled to report second-quarter 2026 earnings on Aug. 6.

For the second quarter of 2026, sales are estimated between $9.15 billion and $9.75 billion. The Zacks Consensus Estimate for ARW’s second-quarter 2026 revenues is pegged at $9.45 billion, indicating a 24.67% increase from the year-ago quarter’s reported figure.

ARW anticipates GAAP earnings of $3.91-$4.11 per share and non-GAAP earnings of $4.32-$4.52 per share.

The consensus mark for earnings is pegged at $4.45 per share, unchanged over the past 30 days. The figure indicates an 83.13% increase from the year-ago quarter’s reported figure.

ARW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 33.71%.

Factors Likely to Shape ARW’s Q2 ResultsArrow Electronics enters its second-quarter 2026 results against a backdrop of guidance that already points to a moderating pace of growth after an outsized first quarter.

Within Global Components, supplier and distribution relationships expanded through the second-quarter as Arrow Electronics continued broadening its line card across power, electrification, and industrial categories, activity consistent with management's commentary on capturing recovering unit demand across geographies and end markets.

Within Global ECS, Arrow Electronics signed an EMEA-wide distribution agreement with Motorola Solutions in early May, adding Avigilon's video security and access control technologies to its cybersecurity and cloud portfolio. The segment also continued expanding AI enablement initiatives for channel partners through the ArrowSphere platform and new AI-focused hubs introduced during the quarter, aimed at helping partners build and monetize AI-driven solutions, an area management has flagged as central to ECS' software-weighted, less cyclical revenue mix.

On the catalyst side, the broad-based cyclical recovery in components that spanned the Americas, EMEA and Asia-Pacific in the first quarter, alongside improving book-to-bill ratios and a building backlog, appears to have carried into the second quarter, with components guided to sales of $6.8 billion to $7.2 billion. Demand rebuilding from customers replenishing depleted buffer inventories, rather than speculative ordering, together with continued expansion of higher-margin value-added services such as supply chain and engineering support, are among the factors likely to have supported profitability during the period.

Headwinds appear equally relevant. Global ECS sales were guided down sequentially to $2.35 billion to $2.55 billion, reflecting the absence of the extra shipping days and the hyperscaler-driven data center build that lifted first-quarter ECS billings, along with the lingering effect of a charge tied to an underperforming multiyear purchase obligation that pressured segment margins. Continued share repurchases under the newly authorized $1 billion buyback program, effective mid-May, and ongoing costs tied to restructuring and the search for a permanent chief executive also remain relevant considerations for the quarter's results.

Given these mixed signals against a still-building components recovery, investors may find it prudent to hold existing positions or await a clearer post-earnings entry point before adding fresh exposure to the stock.

What Our Model Says About ARW StockOur proven model does not predict an earnings beat for Arrow Electronics 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, which is exactly the case here.

ARW currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

 Sandisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

 The Zacks Consensus Estimate for Sandisk’s fiscal fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days.

 Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.

 The Zacks Consensus Estimate for Western Digital’s fiscal fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days.

 MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.

 The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.

© Courtesy of GE via Facebook

The artificial intelligence investment boom has created an unexpected reality: building the world’s fastest chips is no longer the hardest part of expanding AI infrastructure. Finding enough electricity to power those chips has become the new challenge. 

Utilities are racing to expand generation, electricity prices are climbing in many regions, and communities are pushing back against the rapid construction of power-hungry data centers. New York even became the first state to impose a one-year moratorium on new data center construction. 

As investors look for the next phase of the AI buildout, the companies supplying electricity — not semiconductors — may offer a bigger opportunity.

AI’s Biggest Constraint Isn’t Chips — It’s Power Morgan Stanley believes U.S. data centers will require another 68 gigawatts (GW) of electricity between 2026 and 2028. Yet the investment bank estimates projects already under construction account for only 15 GW, while another 15 GW is covered through available or contracted grid capacity. That leaves a 38 GW gap before any alternative solutions are considered.

To put that into perspective, GPUs sitting in idle data centers generate no revenue. AI infrastructure only produces returns when electricity is available to run it. Power has become the scarce resource.

Morgan Stanley modeled several ways the industry could narrow that gap:

Solution Estimated Capacity Natural gas turbines 15 GW to 20 GW Fuel cells 5 GW to 8 GW Co-located nuclear plants 3 GW to 5 GW Repurposed Bitcoin mining sites 10 GW to 19 GW Even after assigning probabilities to each solution, Morgan Stanley’s base case still leaves a 1 GW to 11 GW supply deficit through 2028.

That matters because even a narrow shortfall means some planned AI deployments will likely face delays, higher construction costs, or cancellation. It also points to tighter regional electricity markets, higher wholesale power prices, greater demand for behind-the-meter generation, and a faster shift toward facilities that already have grid access.

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Why GE Vernova Has The Strongest Position Every company helping solve this bottleneck stands to benefit, but not every solution carries the same weight.

Morgan Stanley’s analysis identifies natural gas turbines as the largest contributor toward closing the power gap. That makes GE Vernova (NYSE:GEV | GEV Price Prediction) the clearest beneficiary because it dominates the market for large-frame gas turbines and already has a multiyear order backlog driven in part by data center demand.

Other companies also fit the theme.

Company Why It Benefits Bloom Energy (NYSE:BE) Fuel cells can be deployed faster than waiting years for grid interconnections. Constellation Energy (NYSE:CEG), Vistra (NYSE:VST), Talen Energy (NYSE:TALO) Existing nuclear fleets make co-location with hyperscale data centers possible. Core Scientific (NASDAQ:CORZ), IREN (NASDAQ:IREN), Cipher Mining (NASDAQ:CIFR) Existing grid connections at Bitcoin mining facilities can be converted to AI computing campuses. Ironically, some of the biggest AI infrastructure winners may not be AI companies at all. Owners of existing power assets suddenly possess something every hyperscaler desperately needs: electricity that can be delivered today instead of years from now.

Key Takeaway In short, Morgan Stanley’s research suggests the AI industry’s biggest obstacle has shifted from semiconductor supply to electricity supply. Even if every practical solution is deployed, the U.S. could still face a 1 GW to 11 GW power shortage through 2028, enough to delay portions of planned AI capacity and increase the value of companies that already control power generation or fast-to-market energy solutions.

Granted, Bloom Energy, Constellation, Vistra, Talen, Core Scientific, IREN, and Cipher Mining all have ways to capitalize on this trend. But the numbers point most directly toward GE Vernova. Natural gas turbines represent the largest lever for closing the projected capacity gap, and GE Vernova already leads that market with years of demand sitting in its backlog. 

As the AI buildout moves from buying chips to finding electricity, GE Vernova looks positioned to capture one of the most durable opportunities of the next phase of the AI revolution.

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Aptiv PLC (APTV) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Betsy Frank - Vice President of Investor Relations
Kevin P. Clark - Chairman, CEO & President of Intelligent Systems
Varun Laroyia - Executive VP & CFO

Conference Call Participants

Itay Michaeli - TD Cowen, Research Division
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Emmanuel Rosner - Wolfe Research, LLC
Joseph Spak - UBS Investment Bank, Research Division
Colin Langan - Wells Fargo Securities, LLC, Research Division
James Picariello - BNP Paribas, Research Division
Gautam Narayan - RBC Capital Markets, Research Division
Rajat Gupta - JPMorgan Chase & Co, Research Division

Presentation

Operator

Good day, and welcome to the Aptiv Q2 2026 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Betsy Frank, Vice President, Investor Relations. Please go ahead.

Betsy Frank
Vice President of Investor Relations

Thank you, Shelly. Good morning, and thank you for joining Aptiv's Second Quarter 2026 Earnings Conference Call. The press release and slide presentation can be found on the Investor Relations portion of our website at aptiv.com. Today's review of our financials exclude amortization, restructuring and other special items and reflect the continuing operations of Aptiv as of June 30, reflecting the treatment of our EDS segment as a discontinued operation for the second quarter 2025.

The reconciliations between GAAP and non-GAAP measures are included at the back of the slide presentation and the earnings press release. Unless stated otherwise, all references to growth rates are on a pro forma adjusted year-over-year basis. During today's call, we will be providing certain forward-looking information that reflects Aptiv's current view of future financial performance and may be materially different for reasons that we cite in our Form 10-K and other SEC filings.

Joining us today are Kevin