Track market-moving stories before they get noisy

Wall Street expects a year-over-year increase in earnings on higher revenues when Ametek (AME - 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 4. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis maker of electronic instruments and electromechanical devices is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of +11.8%.

Revenues are expected to be $1.96 billion, up 10% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.49% 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 Ametek?For Ametek, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.39%.

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

So, this combination indicates that Ametek will most likely 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 Ametek would post earnings of $1.9 per share when it actually produced earnings of $1.97, delivering a surprise of +3.68%.

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.

Ametek appears 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.

Graphic Packaging (GPK - 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis packaging company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -73.8%.

Revenues are expected to be $2.19 billion, down 0.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 11.47% lower 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 Graphic Packaging?For Graphic Packaging, 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 -3.99%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Graphic Packaging 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 Graphic Packaging would post earnings of $0.06 per share when it actually produced earnings of $0.09, delivering a surprise of +50.00%.

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.

Graphic Packaging 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 Containers - Paper and Packaging industry, Avery Dennison (AVY - Free Report) , is soon expected to post earnings of $2.47 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +2.1%. This quarter's revenue is expected to be $2.29 billion, up 3.1% from the year-ago quarter.

The consensus EPS estimate for Avery Dennison has been revised 0.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.44%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Avery Dennison 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.

PJT Partners (PJT - Free Report) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +19.39%. A quarter ago, it was expected that this investment bank would post earnings of $1.51 per share when it actually produced earnings of $1.54, delivering a surprise of +1.99%.

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

PJT Partners, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $486.29 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.77%. This compares to year-ago revenues of $406.88 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.

PJT Partners shares have added about 1% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for PJT Partners?While PJT Partners has underperformed 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 PJT Partners 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 $1.72 on $452 million in revenues for the coming quarter and $7.50 on $1.9 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, Financial - Miscellaneous Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, MidCap Financial Investment (MFIC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This investment company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -7.7%. The consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level.

MidCap Financial Investment's revenues are expected to be $66.93 million, down 17.6% from the year-ago quarter.

The market expects Primoris Services (PRIM - Free Report) 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 is important in assessing the company's earnings picture, but a powerful factor that might influence 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 4. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis construction contractor is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -120.8%.

Revenues are expected to be $1.7 billion, down 10.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 30.05% lower 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

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 Primoris Services?For Primoris Services, 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 -50.00%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Primoris Services 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 Primoris Services would post earnings of $0.87 per share when it actually produced earnings of $0.59, delivering a surprise of -32.18%.

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.

Primoris Services 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.

BOSTON, July 28, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a global leader in AI-powered managed cybersecurity operations, today announced the general availability of Rapid7 Cyber GRC, expanding the Rapid7 Command Platform with native governance, risk, and compliance (GRC) capabilities. The new offering helps organizations continuously understand cyber risk, validate control effectiveness, and simplify compliance by connecting GRC workflows with live security operations data. This shared data foundation gives security and compliance teams a unified, continuously updated view of control performance, active threats, and organizational risk.

With Rapid7 Cyber GRC, Rapid7 becomes the first major security operations platform to unify SecOps and GRC, extending its Preemptive Security strategy across risk, controls, and compliance.

Security operations and governance have historically evolved as separate disciplines, leaving organizations to reconcile security findings, compliance evidence, and business risk across disconnected systems. This fragmentation consumes valuable resources, slows decision-making, and leaves leaders without a current view of whether controls are working. Rapid7 Cyber GRC brings these functions together on a common operational foundation, uniting security operations and governance to support continuous assurance.

Rapid7 Cyber GRC closes that gap by connecting governance workflows directly to live security telemetry. By tying internal controls to current attack-surface visibility, Rapid7 gives security, risk, and compliance teams a shared view of control effectiveness, active threats, and organizational risk.

With Rapid7 Cyber GRC, organizations can:

Continuously validate security controls using live platform telemetry to identify control deficiencies and drift between formal assessments.Automate audit readiness by collecting evidence and mapping controls across multiple compliance frameworks.Streamline third-party risk management with an AI Assessment Assistant that accelerates vendor questionnaires and reviews.Connect security action to measurable risk reduction by bringing active threats, exposures, and findings into year-round compliance workflows. The Cyber GRC also uses AI-powered assistants for compliance workflows and third-party assessments. These capabilities support policy management, third-party risk management, risk registers, audit-ready reporting, and optional PCI Approved Scanning Vendor scanning.

“Preemptive security goes beyond detecting and responding to threats. Organizations need to continuously understand where risk exists, whether controls are working, and where action is needed before gaps become incidents,” said Corey Thomas, Executive Chairman of Rapid7. “By bringing GRC into our platform, Rapid7 Cyber GRC connects what teams detect, what they fix, and what they can prove, turning compliance from a point-in-time exercise into an active part of security operations.”

Since launching Cyber GRC in early access in May 2026, Rapid7 has advanced the offering through customer validation, commercial adoption, and an expanding assurance partner ecosystem. Early customers included GetWell Networks and SelectQuote Insurance Services, demonstrating demand among organizations seeking to connect security operations with continuous compliance.

"What excites me most about Rapid7 Cyber GRC is the ability to use the wealth of security data, asset inventories, and API connectivity already available to us to produce more accurate, timely, and defensible risk reporting,” said Bill Theissen, Managing Partner and Vice President of Consulting Services at Cyber Watch. “Just as important, the platform helps bridge the divide between security engineering and GRC teams through a shared view of risk and a common language for communicating it."

Rapid7 is also building an ecosystem of audit, assurance, and GRC partners that extends continuous assurance beyond the platform. Partners including HITRUST, Insight Assurance, and 360 Advanced help organizations support certification and compliance programs across frameworks such as SOC 2, ISO 27001, HITRUST, CMMC, and FedRAMP.

Cyber GRC is one of four platform innovations Rapid7 is showcasing at Black Hat USA 2026 as part of its broader Preemptive Security strategy, alongside:

AI-Accelerated Exposure Discovery & Visibility, which applies natural language querying and AI-generated summaries to help teams surface exposures faster, identify software risk across the full technology stack, and communicate risk posture clearly to the business.Preemptive MDR Alerts, which surface high-confidence threats before they escalate into incidentsAgentic SOC, which applies AI agents to accelerate investigations and guide response while preserving analyst control over high-impact decisions. Together, these innovations extend Rapid7’s vision for Preemptive Security; helping organizations anticipate risk, continuously validate defenses, and disrupt attacks before they become incidents.

Attendees can experience live demonstrations and expert-led sessions at Rapid7 Booth #2445 in the Black Hat USA Business Hall, as well as at the company’s private space at Border Grill in Mandalay Bay. Join Rapid7 at Black Hat 2026.

About Rapid7
Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

Media Contact
Christine Nurnberger
SVP Global Marketing and Growth
[email protected]
(857) 216-7804

Rapid7 Investor Contact
Matt Wells
Vice President, Investor Relations
[email protected]
(617) 865-4277

Whirlpool Today

$39.10 +1.47 (+3.91%)

As of 11:16 AM Eastern

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

52-Week Range$35.45▼

$96.57P/E Ratio13.25

Price Target$51.22

Options markets are currently pricing an aggressive 11% swing for Whirlpool NYSE: WHR ahead of the delayed Aug. 3 earnings report. While the scheduling shift stems from CEO Marc Bitzer's recovery from a minor bicycle accident, the outsized volatility premium reflects deeper structural uncertainty in consumer durables and a housing market in stagnation.

By looking at the pricing of at-the-money straddles expiring just after the report release, investors can see market makers are bracing for severe turbulence. Whirlpool sits at the direct intersection of consumer credit health and real estate velocity.

Get Whirlpool alerts:

As a leading proxy for new home builds and extensive renovations, the upcoming guidance update will heavily dictate market sentiment for the broader housing and home improvement sectors. Understanding the underlying metrics driving this implied move turns this specific earnings report into one of the most critical macro tells of the quarter.

Pouring the Foundation: Appliances and Home SalesIn the consumer durables sector, appliance revenues historically lag existing home turnover by three to six months. With annualized existing home sales stagnating near 4.09 million units through mid-2026, the frozen real estate market is translating directly into a dormant replacement cycle.

High interest rates have trapped homeowners in their current mortgages, a phenomenon that severely limits the organic turnover naturally driving big-ticket discretionary purchases. A consumer moving into a newly purchased existing home often initiates a remodeling cycle by upgrading the kitchen suite or laundry machines.

When transaction velocity drops, that cascading effect on consumer durables creates a measurable revenue vacuum.

Management recently compared the 10% first-quarter industry demand drop directly to conditions during the global financial crisis. The delayed August earnings report will capture the severity of the real estate freeze experienced earlier this year, moving the narrative from theoretical macro headwinds to quantifiable margin compression.

Structural Flaws: Debt Loads and Margin DecayLooking closely at the underlying financials reveals severe distress beneath the surface. Whirlpool is trading down roughly 47% year to date, hovering near its 52-week low of $35.45. While the trailing price-to-earnings ratio is 12.79, the forward price-to-earnings ratio of 32.67 signals market expectations of a sharp earnings contraction. The price-to-book ratio is at a low of 0.78, reflecting a deep discount on Whirlpool's assets by institutional investors.

Profitability metrics highlight the operational strain. Net margins are heavily compressed at 1.08%, with pre-tax margins of 2.15% and a return on equity of 7.68%. S&P Global recently downgraded the corporate credit rating to BB, projecting adjusted leverage will remain elevated near 4.9x through the end of the year. This heavy debt load, combined with a half-billion-dollar inventory glut, restricts free cash flow and operational flexibility.

To preserve capital and ensure survival, Whirlpool officially suspended dividends in May 2026, pivoting aggressively to prioritize paying down over $900 million in debt and to shift to an asset-based revolver. Reeling from the invalidation of emergency tariffs and multiyear inflationary pressures, the manufacturer implemented a 10% price hike in April, followed by a planned 4% list-price increase in July.

Goldman Sachs recently downgraded the stock to neutral, citing a 15% collapse in discretionary appliance purchases and forecasting North American shipments to decline an additional 4% for the full year. Raising prices into a collapsing demand curve rarely expands margins. It typically accelerates volume decay. Consumers are opting to repair rather than replace large units, a shift evident in the isolated 13.5% growth forecast within Whirlpool's small domestic appliances and spare parts divisions.

Remodeling the Boardroom: Appaloosa Steps InThe 11% implied options move is not entirely driven by macroeconomic uncertainty. Idiosyncratic risks are heavily polluting the volatility premium. Appaloosa Management, led by billionaire David Tepper, initiated a hostile public campaign against Whirlpool earlier in 2026. The activist fund criticized board governance and capital allocation, noting a 52% total shareholder loss under current executive tenure and condemning recent recapitalization strategies as highly dilutive.

Activist investors target durable goods manufacturers when they spot fixable inefficiencies in cash flow generation. In an effort to bypass traditional retail bottlenecks and improve margins, Whirlpool is accelerating its direct-to-consumer marketing push through a new collaboration with GrowthLoop. While building a direct sales channel offers long-term higher-margin potential, it requires significant upfront capital expenditure at a time when the balance sheet is already under severe duress. The options market is pricing in balance-sheet survival just as much as it reflects broader real estate velocity.

Whirlpool Corporation (WHR) Price Chart for Tuesday, July, 28, 2026

Collateral Damage: Downstream Retail ContagionDistress at the original equipment manufacturer level rarely stays contained. If Whirlpool fails to clear its backlog despite recent cost-cutting measures, it becomes a direct headwind for major distribution partners. A downward guidance revision from Whirlpool will serve as an immediate warning shot for home improvement giants like Home Depot NYSE: HD and Lowe's NYSE: LOW.

These retailers rely heavily on big-ticket replacements to drive seasonal revenue and support operating margins. When consumers defer large purchases, retailers lose the high-value transactions that pad quarterly earnings, along with the lucrative installation and extended warranty attachments that accompany them. The appliance backlog at the manufacturing level signals imminent margin compression for these downstream players, making Whirlpool's inventory health a leading indicator for broader retail contraction.

Final Walkthrough: Navigating the Implied MoveNavigating an aggressive double-digit implied move requires separating company-specific balance sheet maneuvers from broader macroeconomic signals. The underlying demand metrics provided during the upcoming call will offer a clear read on distressed consumers.

Cautious investors might monitor Whirlpool's forward guidance on Aug. 3 as a health check before adjusting exposure to the broader housing and home remodeling sectors. If management confirms sustained demand compression and an inability to pass costs on to consumers, it could trigger a reassessment of valuations across homebuilders and home improvement retailers. Those tracking the structural shifts in the physical economy can use this data point to map the trajectory of consumer discretionary spending heading into the fall.

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Enlight Renewable Energy Ltd. (ENLT - Free Report) is expected to deliver a year-over-year increase in earnings on higher 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 4, 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 company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +600%.

Revenues are expected to be $188.39 million, up 39.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.94% lower 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 Enlight Renewable Energy Ltd.?For Enlight Renewable Energy Ltd., 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 -42.75%.

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

So, this combination makes it difficult to conclusively predict that Enlight Renewable Energy Ltd. 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 Enlight Renewable Energy Ltd. would post earnings of $0.07 per share when it actually produced earnings of $0.08, delivering a surprise of +14.29%.

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.

Enlight Renewable Energy Ltd. 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 PlayerCrescent Energy (CRGY - Free Report) , another stock in the Zacks Alternative Energy - Other industry, is expected to report earnings per share of $0.59 for the quarter ended June 2026. This estimate points to a year-over-year change of +37.2%. Revenues for the quarter are expected to be $1.23 billion, up 37.2% from the year-ago quarter.

The consensus EPS estimate for Crescent Energy has been revised 18.4% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -8.94%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Crescent Energy 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.

Key Takeaways Sprouts Farmers' Q2 revenues are projected to rise 4.9% to $2.33 billion.Health-focused products, loyalty gains and new stores may support Sprouts Farmers' sales growth.Consumer caution, pricing investments and fuel costs may pressure Sprouts Farmers' margins. With Sprouts Farmers Market, Inc. (SFM - Free Report) set to announce its second-quarter 2026 earnings results on July 29, after the market closes, investors are faced with a critical question: Can SFM continue its streak of surprising results, or will challenges in the grocery sector temper growth?

The Zacks Consensus Estimate for second-quarter revenues stands at $2,329 million, indicating a 4.9% increase from the prior-year reported figure. On the earnings front, the consensus estimate has remained stable at $1.35 per share over the past 30 days, matching the year-ago figure.

Sprouts Farmers has a trailing four-quarter earnings surprise of 5%, on average. In the last reported quarter, this Phoenix, AZ-based company surpassed the Zacks Consensus Estimate by 2.4%.

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What the Zacks Model Indicates for SFM’s Q2 EarningsAs investors prepare for Sprouts Farmers’ second-quarter results, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Sprouts Farmers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprouts Farmers has a Zacks Rank #3 and 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.

Factors Likely to Have Shaped Sprouts Farmers' Q2 OutcomeSprouts Farmers’ second-quarter performance is likely to have benefited from continued demand for differentiated health and wellness products, which remain central to its merchandising strategy. Management has emphasized that innovation and product discovery continue to resonate with customers, supported by a strong pipeline of emerging brands and a growing portfolio of Sprouts-branded offerings. The company has also been strengthening its position in organic and attribute-driven categories while expanding affordable meal solutions, helping reinforce customer loyalty and support basket growth. These initiatives are likely to have contributed to top-line performance.

The company has been leveraging its loyalty program to deepen relationships with shoppers through more personalized offers and targeted promotions. Management indicated that customer response to the enhanced loyalty platform has been encouraging, with stronger engagement from core shoppers and growing participation from newer members. At the same time, the retailer has continued refining its pricing strategy by selectively lowering prices on key everyday items and testing promotional initiatives designed to improve value perception while encouraging repeat visits and larger baskets.

Sprouts Farmers has continued investing in its supply chain, including the expansion of its self-distribution capabilities, which are intended to improve inventory management, product availability and long-term efficiency. The company has also highlighted strong performance from recently opened stores, supported by disciplined site selection and effective local marketing. Alongside these efforts, investments in store operations, employee training and technology are expected to have enhanced execution, improved the in-store shopping experience and positioned the business for sustainable long-term growth.

On the other hand, second-quarter results are likely to be tempered by a still-cautious consumer environment and ongoing pressure on discretionary spending. Management has noted that less-engaged shoppers remained under pressure, with customers continuing to trim the final items from their baskets. Margin performance may also have faced headwinds from continued investments in loyalty rewards and targeted pricing actions aimed at improving affordability, along with higher fuel-related transportation costs. These factors, coupled with continued pressure from lower comparable sales at mature stores, are likely to have weighed on profitability during the quarter. We expect second-quarter gross margin and adjusted EBIT margins to contract by 30 and 80 basis points year over year, respectively.

SFM Stock Price PerformanceShares of Sprouts Farmers have jumped 8.1% over the past three months compared with the industry’s 18.8% rise.

Sprouts Farmers has trailed Grocery Outlet Holding Corp. (GO - Free Report) but outpaced The Kroger Co. (KR - Free Report) . While shares of Kroger have declined 13.5%, Grocery Outlet has surged 22.5%.

Image Source: Zacks Investment Research

Does SFM Present a Strong Case for Value Investing?SFM’s valuation remains elevated relative to the industry. Sprouts Farmers currently trades at a forward 12-month price-to-sales (P/S) multiple of 0.73, which positions it at a premium compared to the industry’s average of 0.21. At the same time, SFM is trading below its 12-month median P/S of 0.81.

This premium positioning is especially notable when compared to peers like Grocery Outlet (with a forward 12-month P/S ratio of 0.20) and Kroger (0.23).

Image Source: Zacks Investment Research

Final Words on SFMSprouts Farmers enters its second-quarter earnings release with a balanced mix of strengths and challenges. Continued momentum in health and wellness products, loyalty initiatives, innovation, and supply-chain improvements is expected to have supported the business, but ongoing consumer caution and margin pressures from value investments could have limited the upside. With the Zacks model not signaling a likely earnings beat, investors may prefer to wait for the quarterly results and management's outlook before taking fresh positions. Existing shareholders can continue holding the stock, while prospective investors should monitor whether the company delivers sustained traffic improvement and margin stability before becoming more constructive on the shares.

Space names are under heavy pressure Tuesday morning as a broad-based sector selloff swamps positive company-specific news. SpaceX (NASDAQ:SPCX | SPCX Price Prediction) shares are down 3% to $109.96, extending a slide that now runs 30% since the June 12 IPO. Plus, SpaceX’s peers are sliding harder despite fresh catalysts.

Rocket Lab (NASDAQ:RKLB) stock is down 9% to $60.63, reversing Monday’s gain. AST SpaceMobile (NASDAQ:ASTS) shares are down 7% to $54.09. The Procure Space ETF is off 2% to $43.03, indicating that the weakness is theme-wide.

The pain is arriving in the same session six members of Congress disclosed SpaceX purchases, an unusual buying signal against a red tape. Those positions are already underwater as SpaceX stock has traded below its $135 IPO price for eight straight sessions.

SpaceX Overhang Drags the Sector Sentiment on SpaceX stock has soured on valuation concerns and a reported first lockup expiration around August 6, which could unlock insider selling. Options positioning reflects that caution: the full-chain put/call ratio sits at 1.07, with the September 18 expiration at 5.52.

Six representatives disclosed SpaceX purchases totaling $182,000 to $480,000 combined, five Republicans and one Democrat, including Reps. Lisa McClain, John James, Daniel Meuser, William Timmons, John McGuire, and Gilbert Cisneros. Several sit on committees touching SpaceX’s military contracts or Starlink. A partial congressional stock-trading ban passed the House last week but isn’t expected to clear the Senate.

The prediction markets are leaning bearish on SpaceX today. Polymarket assigns a 56% probability of a lower close, and the crowd assigns only a 54% probability of the stock holding above $110 into month-end.

Good News Isn’t Helping Peers Rocket Lab announced its largest contract ever on Monday, a $266 million U.S. Space Force award covering 12 suborbital launches with an option for six more, tied to missile defense and a new Kodiak, Alaska launchpad. Citizens reiterated a Market Outperform rating with a $130 price target on RKLB stock. Rocket Lab’s Q1 FY2026 revenue hit a record $200.3 million, up 63.5% year over year (YoY), with a $2.2 billion backlog.

Rocket Lab CEO Peter Beck stated that the company has been “selected to support the Department of War’s Space Based Interceptor program under Golden Dome for America in partnership with Raytheon.” That partner is Raytheon, a unit of RTX (NYSE:RTX). RTX stock is holding up well, as it’s up 20.5% year to date (YTD), a clear contrast to the pure-play space names.

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Rocket Lab’s pending $8 billion all-stock acquisition of Iridium Communications (NASDAQ:IRDM) adds IoT, direct-to-device, and L-band spectrum. Iridium shares are down around 3% to $44.45, and the deal is expected to close mid-2027.

AST SpaceMobile plans to launch BlueBird satellites 11, 12, and 13 aboard a SpaceX Falcon 9 on August 5 from Cape Canaveral, following June’s successful BlueBird 8-10 launch. The new satellites offer nearly double the peak download speeds and position AST SpaceMobile for beta services later this year. There’s an irony worth noting: AST SpaceMobile relies on SpaceX for launch even as SpaceX drags the sector lower.

The Procure Space ETF (NASDAQ:UFO) has no direct SpaceX exposure, but the ETF is still trading lower. It holds Rocket Lab at 5% of net assets and AST SpaceMobile at 3.5%, so the fund’s concentration in beaten-down names is worth noting here.

What to Watch The next setup is calendar-driven. The reported SpaceX lockup date around August 6 could trigger more supply, though a clean pass may relieve the overhang. AST SpaceMobile’s Falcon 9 launch on August 5 is a hard checkpoint, and Rocket Lab’s Neutron debut is targeted for Q4 2026.

The bullish case rests on Rocket Lab’s backlog, real government wins, and AST SpaceMobile’s satellite cadence. Meanwhile, the bearish case highlights lockup mechanics, stretched valuations, and thematic ETF selling that pulls all space names together on down days. Investors should consider keeping their position sizes modest given the volatility on display today.

For now, investors can watch for whether space names find support later in today’s trading session, and whether Congress’s SpaceX stock buying starts to look prescient or premature.

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Key Takeaways Levi Strauss grew e-commerce 17% organically as traffic, conversion and pricing improved digital sales.LEVI added nearly 3 million loyalty members, lifting global enrollment to almost 50 million.Levi Strauss is modernizing core systems to improve inventory visibility and support AI-driven operations. Levi Strauss & Co. (LEVI - Free Report) is reshaping its operating model through digital commerce, loyalty data, technology modernization and automation.

These initiatives support faster decision-making, better inventory visibility and more personalized consumer engagement. Over time, they could also strengthen margin potential as Levi Strauss expands its direct-to-consumer business.

LEVI Turns E-Commerce Into a Growth DriverLevi Strauss’ e-commerce business increased 17% organically in the second quarter of fiscal 2026. The gain was supported by stronger traffic, better conversion, higher units per transaction and average unit retail growth.

The quality of that growth is important. Levi Strauss reduced promotional activity on its site, indicating that digital momentum was not dependent on heavier discounting.

That gives the company a stronger base for profitable digital expansion. A more productive e-commerce channel can help LEVI control pricing, improve merchandising and deepen consumer data across owned channels.

Levi Strauss Builds a Data-Rich Consumer BaseLevi Strauss added nearly 3 million loyalty members in the quarter, bringing global enrollment to almost 50 million.

A larger first-party customer base can support more personalized communication, better product recommendations and stronger retention. It also gives Levi Strauss more direct insight into shopping behavior across stores and online channels.

This matters in a competitive apparel market. American Eagle Outfitters, Inc. (AEO - Free Report) sells men’s and women’s jeans, tops, bottoms, activewear and related apparel through its American Eagle platform, making it relevant to LEVI’s digital and denim-led strategy. Abercrombie & Fitch Co. (ANF - Free Report) is a global omnichannel specialty retailer of apparel and accessories, making it another useful comparison for lifestyle-brand execution.

LEVI Modernizes Its Global Technology PlatformLevi Strauss is upgrading its enterprise resource planning platform, a core system used to manage business data and operations. Asia and Beyond Yoga have migrated to the new platform, following North America.

Europe and the remaining Latin American markets are expected to move to the platform by mid-2027. Once completed, Levi Strauss should operate with a more unified global system.

That can reduce complexity across regions and channels. It can also improve reporting, planning and execution as the company grows across direct-to-consumer, wholesale and international markets.

Levi Strauss Lays the Groundwork for AIThe global enterprise resource planning platform is intended to improve inventory visibility and speed up decision-making. Those capabilities matter as Levi Strauss manages demand across product categories, stores, regions and digital channels.

Management also sees the platform as a foundation for broader artificial intelligence and automation initiatives. These tools can support faster allocation, improved inventory management and more efficient operations.

For a DTC-first retailer, better data is strategic. It can help Levi Strauss match inventory with demand, improve fulfillment and create more relevant consumer engagement.

LEVI Streamlines Its Distribution NetworkLevi Strauss completed its European omni-channel distribution-network transition, consolidating e-commerce fulfillment into distribution centers in Germany.

The company is also shifting its U.S. distribution network to Maersk. The goal is to improve service levels and eventually eliminate duplicated costs.

The transition is not without friction. The U.S. process has taken longer than originally planned, requiring parallel operations and duplicate expenses until consolidation is completed.

Image Source: Zacks Investment Research

LEVI’s Trend Exposure Carries Mixed SignalsThe bottom line is that digital growth, loyalty data, enterprise resource planning modernization and automation are becoming central to Levi Strauss’ next phase. These investments can support a faster, more responsive and more profitable operating model over time.

The stock currently carries a Zacks Rank #3 (Hold), which points to a balanced near-term setup. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

LEVI’s Value Score of B is a favorable composite signal across value, growth and momentum characteristics, but the company still needs to turn technology and digital progress into durable earnings gains.

© William Potter / Shutterstock.com

With AI capex dominating market sentiment, tech leaders are tempting the bulls. Speaking at the RAISE Summit, Lumentum CEO Michael Hurlston warned that the next AI infrastructure bottleneck is indium phosphide (InP), a niche semiconductor material. The shortage, he said, will be worse than what the memory industry faces.

“Between the two of us, I don’t think we can service the demand that NVIDIA and others are now putting on us to solve this resistance problem in the data center. And so, the shortage of indium phosphide, I think, will become even more acute than what we see from the memory guys,” Hurlston said.

Why InP, and Why Now While chip stocks dominate the headlines, the lesser-known story is what keeps data moving between them. InP is a compound semiconductor that emits light. “it’s basically something that can emit light. It’s a property, a material that can emit light, and we have five indium phosphide fabs that we’re trying to ramp to scale,” the Lumentum chief further explained. Just about every laser inside an AI datacenter transceiver, every pump laser feeding an optical amplifier, and every co-packaged optics (CPO) engine next to a GPU relies on it.

To keep traders guessing, scale change differs from prior optical cycles. “The numbers of lasers that those kind of customers (telecom) would deploy are in the hundreds, right? Now we’re talking about hundreds of millions,” Hurlston said. Ramping from thousands of wafers to millions of wafers in a non-silicon material is, in his words, “no small feat.”

The Numbers Back Him Up Lumentum (NASDAQ:LITE | LITE Price Prediction) posted Q3 FY2026 revenue of $808.4 million, up 90.1% year over year, with non-GAAP operating margin expanding 700 basis points sequentially to 32.2%. On the earnings call, Hurlston quantified the gap: “The supply-demand imbalance is probably even higher than we reported in our last call, somewhere greater than 30%.” Pump laser constraints are now “probably the biggest issue and were somewhat unanticipated” and key components are “effectively sold out for the foreseeable future.”

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Q4 guidance calls for net revenue in the range of $960 million to $1.01 billion alongside an operating margin of 35% to 36%. Pricing power continues to drive performance.

Who Else Sits in the Path Hurlston highlighted that NVIDIA (NASDAQ:NVDA) invested in Lumentum and in “one of our largest competitors, who also has incredible indium phosphide manufacturing capability.” That competitor is Coherent (NYSE:COHR), which received a $2 billion R&D investment from NVIDIA. Coherent is on track to double internal InP output by year-end 2026 and more than double again by 2027. Datacenter and Communications now accounts for 75% of revenue, up from 41% a year ago.

AXT (NASDAQ:AXTI) is the substrate play. CEO Morris Young closed a $632.5 million capital raise to fund InP capacity at Tongmei and warned that “capacity will become a critical enabler.” Applied Optoelectronics (NASDAQ:AAOI) is the transceiver name, with Q1 datacenter revenue of $81.4 million, more than double year over year.

While the cohort has been rallying YTD, all four stocks sold off sharply in the last month. LITE is down 22.3%, COHR down 37.6%, AXTI down 39.9%, and AAOI down 35.7%. If Hurlston’s shortage call is right, fundamentals are moving opposite the tape.

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Redwood Trust NYSE: RWT reported a second-quarter GAAP net loss of $3 million, or $0.03 per share, while its mortgage banking platforms continued to generate returns above 20% and the company advanced efforts to reduce its legacy investment portfolio.

Chief Executive Officer Chris Abate said Redwood exceeded $8 billion in mortgage banking volume for the second consecutive quarter and completed more than 20 securitizations in the first half of 2026. The company ended the quarter by pricing three securitizations in one week, representing each of its operating platforms: Sequoia, Aspire and CoreVest.

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Management emphasized technology, product expansion, bank relationships and capital reallocation as central elements of its strategy amid elevated mortgage rates and weak housing activity. Abate said Redwood is building what he described as an “AI-native housing finance platform,” using internally developed systems to support activities including seller financial reviews, guideline comparisons and contract analysis.

Technology and operating efficiency Redwood said direct expenses represented 64 basis points of production volume in the first half of 2026, a 28% improvement from full-year 2025. Annualized time savings from AI-enabled automation initiatives reached about 23,600 hours, more than 50% above the first-quarter baseline, according to management.

Chief Technology Officer Abhinav Asthana said the company is seeking to redesign operating processes rather than simply adding AI tools to existing workflows. He said the technology platforms are intended to accommodate growing volume at greater efficiency.

Chief Financial Officer Brooke Carillo said the company expects the next 10 to 15 basis points of expense improvement to be driven more substantially by technology and continued platform scalability. Total operating expenses declined 21% sequentially, while general and administrative expenses fell to $38 million from $49 million. About $7 million of the reduction reflected restructuring charges recorded in the first quarter, management said.

Mortgage banking platforms maintain profitability Redwood’s core segments generated $34 million in earnings available for distribution, or EAD, during the quarter, equating to an 18.5% annualized return on equity. In contrast, legacy investments generated a $14 million EAD loss.

Aggregate mortgage banking net revenue was essentially unchanged from the prior quarter despite a roughly 6% decline in production, as margins held steady to improved and direct expenses declined. Redwood’s operating platforms produced a 33% annualized return on average capital, while average capital required per dollar of production decreased to about 2.6% in the first half from roughly 3% a year earlier.

Sequoia: Lock volume totaled $5.6 billion. Gain-on-sale margins were 92 basis points, compared with 96 basis points in the first quarter. The platform completed nine securitizations and $1.2 billion of whole-loan sales, nearly all to banks. More than 65% of Sequoia production was purchase-money loans. Aspire: Record lock volume increased 31% sequentially to $2.1 billion. GAAP net income rose to $7 million from $2 million in the first quarter, while gain-on-sale margins climbed to 101 basis points from 73 basis points as securitization spreads normalized and hedge performance improved. CoreVest: Loan funding totaled $410 million, down about 5% from the first quarter. The segment reported $1 million of GAAP net income, compared with a $3 million loss in the prior quarter that included about $5 million of restructuring charges. President Dash Robinson said newly launched Sequoia products accounted for more than 30% of quarterly lock volume. The company also introduced a HELOC product within Sequoia and expanded its Medical Professionals loan program, which completed a second securitization in July that priced inside its inaugural issuance.

Aspire completed its second and third securitizations under its shelf during the quarter. Redwood said 60-plus-day delinquencies in Aspire’s securitized population were below 10 basis points as of June 30. Subsequent to quarter-end, the company executed definitive documentation for a dedicated joint venture with Crayhill Capital Management that could have purchasing power of up to $8 billion of loans over time.

Legacy portfolio wind-down remains a priority Redwood continued reallocating capital away from its legacy investment segment, which accounted for 12% of overall capital at quarter-end, down from 15% at March 31 and 63% below the level one year earlier. The company said it began formally marketing a substantial portion of its remaining legacy bridge loans early in the third quarter and priced a financing arrangement for the remainder of its home equity investment portfolio.

Robinson said the financing transaction is expected on a pro forma basis to reduce capital allocated to legacy investments below 10%. Redwood continues to target reducing the segment to below 5% of capital by the end of 2026.

Legacy investments generated a $23 million GAAP loss, including $12 million of negative fair-value changes, primarily related to bridge loans. Carillo said each $100 million of capital redeployed from the legacy portfolio could improve consolidated EAD return on equity by approximately 200 to 400 basis points through reinvestment in operating platforms or potentially through share repurchases at suitable levels.

Balance sheet and market outlook Book value per common share was $6.90 at June 30, down 3% from $7.12 at the end of the first quarter. Management attributed the decline primarily to mark-to-market changes and carrying costs in legacy investments, as well as the company’s $0.18 common dividend. During the question-and-answer session, management said book value had recovered approximately 1% quarter-to-date.

Redwood ended the quarter with $192 million of unrestricted cash, about $100 million of unencumbered assets and $3.7 billion of excess warehouse capacity. Recourse debt declined by about $150 million to $4.5 billion, while recourse leverage declined modestly to five times.

Management said Redwood adopted a more cautious posture during the volatile early portion of the second quarter but increased activity in June, when it generated about 40% of quarterly volume. Robinson said July had been a relatively strong month for mortgage banking, though the company remains attentive to higher rates and broader market conditions.

About Redwood Trust (NYSE:RWT)Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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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The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.

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Texas Power Play: Hut 8 Sparks a $9.8B AI Infrastructure DealCore Scientific NASDAQ: CORZ said it has entered a commercial partnership with AMD covering up to 2.5 gigawatts of data center capacity, beginning with approximately 530 megawatts across five campuses under 15-year agreements.

Chief Executive Officer Adam Sullivan said the initial agreements represent more than $14 billion of base contracted revenue and include 2.5% annual escalators. The company now has about 1.1 gigawatts of total contracted billable capacity, representing more than $24 billion of base contracted revenue, according to management.

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How TeraWulf’s Anthropic Deal Booted Up a $19B AI EmpireThe AMD commitment includes roughly 380 megawatts delivered directly to AMD through triple-net leases at Core Scientific's Pecos, Hunt and Muskogee sites. The remaining approximately 150 megawatts at the Auburn and Dalton campuses will support an unnamed Neocloud customer through modified gross leases, with AMD providing full credit support for the 15-year terms.

Sullivan said the AMD credit support arrangements do not include equity step-in rights, which he said protects Core Scientific's equity investments in the projects. The company also issued AMD a warrant with a strike price reflecting current market levels, subject to certain commercial conditions.

Expansion rights and development plans These 3 Bitcoin Miner Stocks Are Riding the AI Data Center BoomAMD has exclusive reservation rights, at specified times and under specified conditions, to lease as much as an additional 2 gigawatts of capacity. Core Scientific said it believes it can make that capacity available through additional grid-connected power, capacity progressing through load studies and behind-the-meter power solutions at Pecos, Hunt and Muskogee.

Management did not provide specific timing for the additional capacity. Sullivan told analysts that the company would work closely with AMD on future requirements and would not discuss capacity covered by the reservation agreement with other prospective customers.

The company said Pecos and Muskogee each have the potential to support up to 1 gigawatt of leasable capacity through a combination of additional grid power and behind-the-meter solutions. During the question-and-answer session, management said behind-the-meter development timelines could be driven by lateral pipeline construction and equipment availability, depending on the site. The company is considering technologies including turbines, fuel cells, linear generators and other alternatives.

Separately, Core Scientific said it has identified a pipeline of more than 2 gigawatts of potential incremental power at new sites, with initial capacity potentially available from late 2028 through 2030. The company said it intends to selectively acquire powered land and develop new locations while continuing to execute contracted projects.

Construction milestones and delivery schedule Chief Operating Officer Matt Brown said Core Scientific is currently billing for 437 megawatts of capacity, having substantially completed four of five CoreWeave campuses ahead of its prior timeline. The company had expected to substantially complete those sites before the end of summer.

Dalton Phase Two, the fifth and final CoreWeave campus, is expected to begin delivering its remaining 150 megawatts at the end of 2026 and be completed in early 2027, Brown said.

For AMD, Pecos is expected to be the first location to begin delivery, with initial megawatts scheduled for the first half of 2027. Management said about half of the 530-megawatt commitment is expected to be delivered in 2027, with the balance delivered in 2028.

Brown said vertical construction is underway at Pecos, major infrastructure equipment is arriving, and the building shell for the first 185 megawatts is nearing completion. Hunt, Auburn, Muskogee and Dalton Phase Three are advancing through design, procurement, site preparation and construction.

Management said the company had begun developing several AMD-related locations before customer contracts were signed. It had secured long-lead equipment, released capital for substation construction at multiple sites and engaged general contractors and labor resources. Sullivan said the company has equipment secured and contractors on site across the five campuses.

Core Scientific expects all-in construction costs of approximately $11 million to $12 million per megawatt for high-density AI infrastructure. Brown said that estimate includes construction labor, owner-furnished equipment such as transformers, switchgear, generators and cooling systems, as well as engineering, permitting, utility interconnection, insurance, testing and other soft costs.

He said higher costs relative to the earlier CoreWeave program reflect increases in equipment and labor costs, supply-chain constraints, tariffs and differences in site design. Management said labor availability remains a significant construction cost driver in competitive U.S. markets.

Second-quarter financial and funding update Chief Financial Officer Jim Nygaard said second-quarter GAAP colocation revenue rose sequentially to $137 million, aided by the increase in billable capacity. He said the company expects another meaningful increase in colocation revenue during the third quarter.

Under GAAP accounting, revenue from the CoreWeave contracts is recognized on a straight-line basis over the 12-year lease terms, effectively recognizing contractual escalators earlier in reported revenue, Nygaard said.

Core Scientific continued to wind down its Bitcoin mining operations during the quarter. The company ended June with nearly 30% fewer miners online than at the end of the first quarter and was self-mining at only two sites. Nygaard said mining activity is expected to continue declining through the remainder of 2026 as the business is operated primarily to offset contractual power costs.

Second-quarter cash selling, general and administrative expense was about $36 million, up $4 million sequentially, primarily due to one-time professional fees related to recent debt financing. Nygaard said the company views the low-$30 million range as a reasonable quarterly SG&A baseline, though expenses may vary as it supports growth.

Core Scientific ended the second quarter with approximately $1.8 billion in liquidity. The company estimates the initial AMD build-out will require about $6 billion of capital and expects to finance it through project-level bonds. It also said it is prepared to invest up to approximately $1 billion to advance roughly 500 megawatts of initial future capacity ahead of customer contracts.

Nygaard said the company expects to use project-bond structures similar to those used for its CoreWeave projects. He added that the direct AMD leases and the Neocloud leases backed by AMD credit support would have distinct contractual structures but would be financed through similar project-level vehicles.

About Core Scientific (NASDAQ:CORZ)Core Scientific, Inc NASDAQ: CORZ is a leading provider of large-scale blockchain infrastructure and digital asset mining services. The company develops, owns and operates high-performance data centers optimized for the mining of Bitcoin and other proof-of-work cryptocurrencies. In addition to its core mining operations, Core Scientific offers colocation, hosting and managed services designed to support institutional clients and enterprise users in deploying and scaling blockchain nodes and computing hardware.

Core Scientific's service portfolio includes hardware procurement, deployment and maintenance, real-time monitoring, power management and network connectivity.

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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Apple (NASDAQ:AAPL | AAPL Price Prediction) enters its July 30 earnings report with eight consecutive EPS beats and its strongest revenue growth in years. The business recently became the most valuable company on Earth, overtaking Nvidia. A new $100 billion buyback, record Services revenue, and management’s outlook for 14% to 17% June-quarter growth give investors 3 clear reasons to watch the stock.

Reason #1: Apple Just Authorized Another $100 Billion Buyback Apple’s board just authorized a fresh $100 billion share repurchase program and lifted the dividend 4% to $0.27 per share. In the March Q2 quarter alone, the company returned $15 billion to shareholders, including $11 billion in buybacks that retired 42 million shares. Since the program’s inception, Apple has returned over $1 trillion to shareholders.

Reason #2: Revenue Growth Is Accelerating Second, growth is accelerating. Q2 FY26 revenue climbed 16.6% year over year to $111.18 billion, with iPhone revenue up 22% on the iPhone 17 launch. Services set another all-time record at $30.98 billion, carrying a 76.7% gross margin against a 2.5 billion-device installed base. This gives Apple a recurring, high-margin income stream investors pay a premium for.

Reason #3: July 30 Q3 Earnings Could Extend the Momentum Third, management guided for this quarter to see 14-17% revenue growth and gross margin of 47.5-48.5%. Prediction markets assign an 81% probability to iPhone revenue clearing $52 billion in this quarter.

The Big Advantage Apple Has Over Alphabet Alphabet’s (NASDAQ:GOOGL) Q2 2026 free cash flow was negative $5.86 billion after capital expenditures hit $44.92 billion, and the company’s stock buyback program was suspended in Q2 2026. Alphabet raised roughly $70 billion in combined debt and equity to fund its AI compute.

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On the other hand, Apple has been able to sit out the massive AI infrastructure spending that many other Mag-7 stocks are participating in. While Alphabet and others issue debt and equity, Apple continues to buy back stock.

China Has Become a Growth Engine Again China remains an important risk, but Apple’s recent results point toward renewed strength rather than deterioration. Greater China revenue reached a record $20.50 billion in the March quarter, rising 28%, while first-half regional growth reached 33%.

Apple now combines accelerating revenue, record high-margin Services sales, and a fresh $100 billion buyback. The July 30 report will show whether that momentum can continue through the June quarter and support another year of substantial shareholder returns.

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Contact [email protected] for any questions or corrections.

Reddit (RDDT -2.21%) isn't sure that its current agreement with Alphabet (GOOG -0.02%)(GOOGL +0.08%) makes sense anymore. According to a report from the Wall Street Journal, the social media giant is contemplating a significant move: not making its content available for chatbots.

While Alphabet's Google Search does drive a lot of traffic to Reddit, it has also been declining, with users turning more to artificial intelligence (AI) chatbots such as OpenAI's ChatGPT or Alphabet's Gemini for answers. And those chatbots have been trained with online content, including Reddit's popular online message boards.

A possible change in strategy for Reddit would be a bold move, but I believe it's the right one.

Image source: Getty Images.

Reddit's revenue growth remains strong, but AI could pose a serious threat Reddit has a strong brand, with its communities being known for often offering balanced, two-sided arguments on common questions. Unlike a typical search query, which may just provide a direct answer, Reddit can offer more value to people seeking deeper analysis and thought. Due to its popularity, the social media giant has been experiencing significant growth in recent years, with ad revenue accounting for the lion's share of its top line.

RDDT Revenue (Quarterly YoY Growth) data by YCharts

The problem with AI chatbots, however, is that they can significantly impact traffic to Reddit if users get more complex answers without visiting the site's forums.

In 2024, Reddit and Google reached a $60 million-per-year deal that would allow Google to train its AI on Reddit's content. However, that may not be worth the long-term risk that it runs to Reddit's business, and it's a small fraction of the $2.5 billion in revenue the company has generated over the past four quarters. Reddit is reportedly considering not renewing its licensing deal.

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Is Reddit's stock worth buying right now? Reddit is right to question whether its AI deal makes sense. It should consider a far more lucrative agreement with Google to compensate it for the current and future traffic losses it may experience. It may simply be that a deal can't be reached, but it needs to protect its business and brand; if users can find the same types of answers from a chatbot, there may no longer be a need to visit Reddit's online communities.

Overall, Reddit's brand still appears strong, and the company does have leverage given the value and wealth of information it offers AI chatbots; I think it would be premature to worry about its business right now. With the stock down more than 20% this year, now may be a good time to buy it on the dip.

Alphabet had long been Wall Street's favorite hyperscaler due to its expertise in converting high capital expenditures into revenue.

But investors expressed displeasure with company's plans, announced on Wednesday along with second-quarter earnings, to boost its 2026 capex forecast, as the internet giant rushes to open new data centers for artificial intelligence.

Shares of Google's parent slid 7% on Thursday, and Amazon, Meta and Microsoft all fell as well, underscoring increased scrutiny of infrastructure investments that are resulting in dwindling cash piles with uncertain returns. The three megacaps are set to report quarterly results this week.

In recent quarters, investors cheered capital spending hikes, interpreting them as proof of healthy demand and a maturing revenue backlog. Alphabet received the best reception on Wall Street — the stock is up about 70% over the past year — because its cloud infrastructure business has been growing faster than rivals and its Gemini models and services have gained traction in a market dominated by OpenAI and Anthropic.

But if last week's report is a guide, Google is no longer getting the benefit of the doubt. And Mark Mahaney, head of internet research at Evercore ISI, wrote in a note Wednesday that Alphabet's capex boost "increases the odds of similar behavior" from Amazon and Microsoft.

Microsoft and Meta will be next in testing investor appetite, when they report after the close on Wednesday. Amazon follows on Thursday.

In April, Microsoft projected $190 billion worth of capex and finance leases for the year, including $25 billion from higher component prices, as AI chip demand eats up memory supply.

"If they raise capex again, based on what we saw in the reaction of Google [last week], it's probably going to lead to selling pressure in the stock," Cowen analyst Derrick Wood told CNBC in an interview. Analysts polled by Visible Alpha expect $190.1 billion from Microsoft.

Following Alphabet's report, the consensus for Amazon crept up almost $2 billion to $207.4 billion, according to Visible Alpha.

'Growing AI fatigue'Amazon in February guided to $200 billion in capex for 2026, the highest among the group until Alphabet lifted the top end of its forecast to $205 billion. The company maintained that forecast in April, with CEO Andy Jassy telling investors at the time that its "plan is largely the same."

Several analysts wrote in research notes earlier this month that they expect Amazon to lift its capex guide for the year, as the company boosts investments in AI, custom chips and other costly bets like its nascent satellite internet service, and given higher memory prices.

Jake Dollarhide, CEO of Longbow Asset Management, whose top holding is Amazon, wrote in an email that the online retailer could struggle to impress investors "in this environment of growing AI fatigue, the sudden questioning of meteoric capex budget increases and Silicon Valley and the Mag 7 taking on noticeable levels of debt in order to fund the massive data center buildout."

Amazon's long-term debt shot up 81% to $119 billion from Dec. 31 to March 31. Alphabet's rose 111% to $98 billion during the first six months of 2026, while the company, long viewed as a money-printing machine, turned cash flow negative in the second quarter for the first time.

Amazon, Meta, Microsoft stock chart

Wedbush analysts wrote in a Thursday note that Alphabet's report suggested capacity remains constrained in the face of strong demand, and that there's a "willingness to spend." But they don't view a potential capex boost from Amazon as a complete negative.

"We view the trade-off as worthwhile given AWS's re-acceleration and Amazon's expanding platform advantages across Bedrock, Alexa and its logistics network," wrote the analysts, who recommend buying Amazon stock.

While Google's cloud has been growing faster, Amazon Web Services still leads the cloud infrastructure market, with Microsoft second. Google's cloud was 30% the size of AWS in 2020 and nearly 50% in the first quarter of 2026. Its cloud business recorded 82% expansion in the second quarter, the fastest growth since at least 2020, after increasing 63% in the prior period.

AWS revenue rose 28% in the first quarter, and analysts surveyed by FactSet expect nearly 32% for the second quarter. Revenue from Microsoft's Azure and other cloud services grew 40% in the first quarter, with FactSet's second-quarter consensus at 39%.

Read more CNBC tech newsSam Altman to meet with Trump administration, Senators this week. Here's what he plans to sayNvidia, SpaceX, Microsoft launch AI safety initiative as OpenAI cyberattack fallout continuesFrom Silicon Valley to DC, the tech world is suddenly obsessed with one concept in AI: DistillationSpaceX launches massive Starship rocket in first test flight since IPOMahaney wrote that cloud "demand appears relentless," but he noted that it's "hard to see anyone matching" Google's cloud growth rate during the quarter.

Meta, the lone hyperscaler that doesn't have an established cloud business, is expected to record capex this year of $138.9 billion and told investors in April that the number could reach $145 billion. The company is now looking to sell computing power to third parties.

For now, Meta is still throwing off cash. Analysts surveyed by FactSet expect Microsoft's free cash flow to go negative in the fourth quarter for the first time since at least 2001.

Amazon's free cash flow flipped into the red in the first quarter, and analysts surveyed by FactSet forecast it will stay there for the full year. The company last had negative free cash flow in 2021 and 2022 as it doubled its warehouse footprint in response to a pandemic-driven surge in e-commerce demand.

"I think that patience is required for these names because I do think that these will be AI winners over sort of the medium and longer term," said Tiffany Wade, a fund manager at Columbia Threadneedle, which held positions in Alphabet, Amazon and Microsoft at the end of June.

On Alphabet's earnings call, CEO Sundar Pichai contended that his company's strategy of calling in outside vendors for extra computing power to meet cloud demand will yield attractive margins within years, despite the cost.

"I think that's probably the right thing to do," Wade said. "You don't want to be turning away customers because you don't have capacity."

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Ford Motor Company (NYSE:F) will release its second quarter earnings report after the closing bell on Tuesday, July 28.

Analysts expect the Dearborn, Michigan-based company to report quarterly earnings of 34 cents per share, down from 37 cents per share in the year-ago period. The consensus estimate for Ford’s quarterly revenue is $45.26 billion. It reported $46.94 billion last year, according to Benzinga Pro.

The company has beaten analyst estimates for earnings per share of seven of the last 10 quarters, including the most recently reported first quarter.

Ford shares gained 2.2% to close at $14.68 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying F stock? Here’s what analysts think:

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Paypal (PYPL - Free Report) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.4 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +7.81%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.27 per share when it actually produced earnings of $1.34, delivering a surprise of +5.51%.

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

Paypal, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $8.68 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.02%. This compares to year-ago revenues of $8.29 billion. 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.

Paypal shares have lost about 4% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Paypal?While Paypal has underperformed 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 Paypal 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 $1.34 on $8.61 billion in revenues for the coming quarter and $5.32 on $34.3 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, Financial Transaction Services is currently in the bottom 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.

Another stock from the same industry, Corpay (CPAY - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This provider of fuel card and payment products for businesses is expected to post quarterly earnings of $6.58 per share in its upcoming report, which represents a year-over-year change of +28.3%. The consensus EPS estimate for the quarter has been revised 0% lower over the last 30 days to the current level.

Corpay's revenues are expected to be $1.3 billion, up 18.1% from the year-ago quarter.

The company logo for Hormel Foods is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 9, 2019. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab

CompaniesJuly 28 (Reuters) - Hormel Foods (HRL.N), opens new tab on Tuesday named insider and industry veteran John Ghingo as CEO, as the ​Skippy peanut-butter maker looks to drive growth ‌and modernize operations amid a challenging consumer spending environment.

Ghingo, 53, has more than 25 years of leadership experience across the consumer ​packaged goods industry, and would succeed interim executive Jeffrey ​Ettinger, who returned last year after former CEO ⁠and president James Snee retired.

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Here are some details:

Ghingo, ​who will take over the role from October 26, ​has served as Hormel's president and board member since July 2025 and previously led the company's retail business, its ​largest segment by sales.

As president, Ghingo also oversees ​the company's food service and international business segments, along with ‌supply ⁠chain and global operations among others.

Ghingo has held leadership roles at various consumer packaged goods companies including at Applegate Farms, a subsidiary of Hormel Foods, ​Mondelez International ​and WhiteWave ⁠Foods.

Ettinger, who served as CEO of Hormel Foods from 2005 to 2016, will ​continue to serve on the company's ​board.

Hormel ⁠Foods beat second-quarter results estimates in May and said demand for food has remained resilient, mainly with ⁠growth ​in protein, where its portfolio ​is "well positioned" despite weak consumer sentiment.

Reporting by Shania S Thomas and ​Anuja Bharat Mistry in Bengaluru; Editing by Arun Koyyur

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

Key Takeaways Enbridge is set to report second-quarter 2026 results on July 31 before the opening bell.Enbridge's second-quarter revenues are projected to increase 0.9% year over year to $10.85 billion.ENB's stable contracted business may be offset by higher financing costs in the quarter. Enbridge Inc. (ENB - Free Report) is set to report second-quarter 2026 results on July 31, before the opening bell.

Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, Enbridge’s adjusted earnings of 71 cents per share beat the Zacks Consensus Estimate of 69 cents, primarily driven by higher adjusted EBITDA contributions from its Gas Transmission, and Gas Distribution and Storage business segments. Lower adjusted EBITDA contributions from the Liquids Pipelines segment slightly offset the positives.

Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same once, delivering an average surprise of 1.79%. This is depicted in the graph below.

Estimate TrendThe Zacks Consensus Estimate for second-quarter earnings per share of 43 cents has witnessed two downward and no upward revisions in the past seven days. The estimated figure suggests a decline of 8.5% from the prior-year reported figure.

The Zacks Consensus Estimate for revenues of $10.85 billion indicates a 0.9% increase from the year-ago recorded figure.

Factors to Consider for ENBAs a leading midstream energy firm, Enbridge serves more than 75% of North American refineries, supplies roughly 20% of the continent's natural gas and reaches more than 7 million utility customers. Backed by long-term contracts and low exposure to commodity price volatility, the company's low-risk business model is expected to deliver stable earnings for the to be-reported quarter.

Despite the stable nature of its business model, ENB’s performance in the to-be-reported quarter is anticipated to have been affected by increased financing costs, which is likely to have weighed on its overall profitability and dampened Enbridge’s quarterly performance.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for ENB this time. 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 not the case here, as you will see below.

Earnings ESP: Enbridge has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

ENB’s Zacks Rank: ENB currently carries a Zacks Rank #4 (Sell). 

Key Picks From the Energy SectorSome better-ranked stocks from the energy sector are NOV Inc. (NOV - Free Report) , Cactus, Inc. (WHD - Free Report) and Western Midstream Partners, LP (WES - Free Report) . NOV, Cactus and Western Midstream currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

NOV has an Earnings ESP of +19.69%. The company is scheduled to release second-quarter 2026 earnings on July 28, 2026.

The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, indicating a 44.8% decline from the prior-year reported figure.

Cactus has an Earnings ESP of +7.04%. The company is scheduled to release second-quarter 2026 earnings on July 29, 2026.

The Zacks Consensus Estimate for WHD’s earnings is pegged at 71 cents per share, suggesting a 7.6% improvement from the prior-year reported figure.

Western Midstream  has an Earnings ESP of +1.19%.The partnership is scheduled to release second-quarter 2026 earnings on Aug. 5, 2026.

The Zacks Consensus Estimate for WES’ earnings is pegged at 90 cents per share, suggesting a 3.4% improvement from the prior-year reported figure.

Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) trades at $356.83, while the average Wall Street price target sits at $484.40. That leaves roughly a 36% gap between current price and Street consensus.

Intuitive builds the da Vinci robotic surgery platform and the Ion lung biopsy system, dominating soft tissue surgical robotics. Wall Street has debated whether that moat holds amid tariffs, softer U.S. procedure growth, and da Vinci 5 margin questions.

Bernstein, the most bullish analyst on the name, targets $685, implying almost 92% upside from here.

The Selloff That Broke a Compounder ISRG has fallen 37% year to date, from $566.36 at the end of 2025 to today’s level. That drawdown well exceeds 30% while the underlying business kept growing.

Q2 2026 was a clean beat. Revenue came in at $2.89 billion, up 18.54% year over year, and non-GAAP EPS of $2.80 topped the $2.5037 consensus. It was the fifth consecutive quarter of beating estimates. Shares still dropped 11.25% the day after earnings.

The guide spooked investors. Management guided full-year da Vinci procedure growth to 13.5% to 15.5%, down from 18% in 2025. U.S. da Vinci growth decelerated from 14% in Q1 to 12% in Q2, with CEO Dave Rosa citing ACA premium dynamics, high-single-digit declines in bariatric cases from GLP-1 usage, and China tender softness. Tariff exposure across Mexico, Germany, and China manufacturing compressed the multiple hard.

Why Bernstein Still Sees a Double Bernstein maintains an Outperform rating and cut its target from $750 to $685 to account for near-term procedure volatility and multiple compression. Even after the trim, it remains the most optimistic shop on the Street. The thesis rests on three pillars: a da Vinci 5 upgrade cycle multiplier, recurring revenue durability, and an international monopolistic moat.

Q2 data supports each leg. Da Vinci 5 placements hit 246 of 468 total placements, with U.S. placements up 24% as customers upgrade from Xi. Recurring revenue was $2.47 billion, roughly 85% of the total. International procedures grew 21%, with Europe and Asia both at 20%. Non-GAAP gross margin expanded to 70.0%, aided by a $36 million tariff refund but still up meaningfully year over year.

Consensus remains constructive. Ratings break out to 22 Buy, 9 Hold, and 2 Sell, and CEO commentary has been consistently positive through recent quarters. The bull case ties recovery to procedure growth reacceleration in 2027 as deferred cases return, ongoing da Vinci 5 mix shift lifting system ASPs (already $1.6 million versus $1.5 million prior year), and the Extended Use Program on ENDORIST instruments broadening adoption in cost-constrained markets.

Peers Held Up While ISRG Slid This selloff is largely idiosyncratic. Nearest large-cap med device peers have declined far less.

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Medtronic (NYSE:MDT) is down 10.83% year to date at $84.22, with its Hugo robotic surgery platform now FDA cleared and Cardiac Ablation growing 78%. Analyst posture skews Buy with modest single-digit implied upside to consensus.

Stryker (NYSE:SYK) sits at $336.74, off just 3.67% year to date after a Q1 cyber incident. The Mako orthopedic robotics platform and Inari vascular deal have kept analysts constructive, with Buy ratings dominant and mid-teens implied upside.

The largest analyst-implied upside in this peer group sits with ISRG by a wide margin. This is a single-name reset.

What the Numbers Actually Say At $356.83 against a consensus target of $484.40, implied upside runs roughly 36%. Bernstein’s $685 stretches that to nearly 92%.

ISRG is down 37% year to date and 28.04% over the past year, while the S&P 500 is up 8.38% year to date and 16.01% over 12 months. Shares trade at a P/E of roughly 39, compressed from 2025 premium multiples.

Cash on the balance sheet is $8.6 billion, and the company repurchased $379 million of stock in Q2 at an average price of $439. Management is buying above current levels.

The Verdict on a $130 Billion Reset The bull case for Intuitive Surgical holds if the procedure growth deceleration is a 2026 pothole rather than a new normal. Recovery runs through da Vinci 5 mix continuing to lift ASPs and service revenue, ACA-related patient deferrals unwinding as coverage stabilizes, and tariff impacts staying within the 100 basis points already baked into guidance. Recurring revenue at 85% of the total is a hard base to break.

The bear case takes over if U.S. procedure growth stalls in the low double digits, if China competition and pricing pressure escalate beyond current tender softness, or if further tariffs blow through management’s guardrails. A 39x P/E on a business growing procedures 13% to 15% leaves little room for another guide down.

On balance, lean constructive. The peer set remains committed to surgical robotics, the balance sheet is fortress, and management is repurchasing above current price. Bernstein’s $685 is aspirational, but consensus at $484 looks achievable if the 2027 comp resets even modestly favorably.

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Contact [email protected] for any questions or corrections.

Revenue of $4.30 billion, increased +6.1% as organic growth accelerated to +4.5%Operating income of $1.15 billion grew +7.4% marking the most profitable quarter in company historyOperating margin of 26.7% expanded 40 bps, as enterprise initiatives contributed 120 bpsGAAP EPS of $2.84 increased +10.1%Operating cash flow of $723 million and free cash flow of $631 million; an increase of +41%Full Year 2026 guidance raised; organic revenue raised +1.5%-pts to new midpoint of 3.5% and GAAP EPS raised +$0.15 to new midpoint of $11.45 GLENVIEW, Ill., July 28, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2026 results and raised full year 2026 guidance.

“The ITW team delivered a strong operational and financial performance in the second quarter highlighted by organic growth of 4.5 percent, operating margin of 26.7 percent, and a 10 percent increase in GAAP earnings per share to $2.84,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

“Our results reflect a meaningful acceleration in our capex-related segments, led by double-digit organic growth in Welding and Test & Measurement and Electronics, alongside strong performance in Polymers & Fluids. As we advance our enterprise strategy priorities, we remain well-positioned to drive consistent, above-market organic growth powered by increased contribution to revenue growth from Customer-Back Innovation while further expanding profitability and margins. As a result of our strong operational momentum, we are raising both top- and bottom-line guidance for the full year,” O’Herlihy concluded.

Second Quarter 2026 Results

Second quarter revenue of $4.30 billion increased by 6.1 percent. Organic revenue growth was 4.5 percent, led by 6.4 percent growth in North America. Foreign currency translation increased revenue by 1.4 percent and an acquisition added 0.2 percent.

GAAP EPS grew 10.1 percent to $2.84, while operating income increased 7.4 percent to $1.15 billion, marking the most profitable quarter in the history of the company. Operating margin expanded by 40 basis points to 26.7 percent as enterprise initiatives contributed 120 basis points. In the quarter, price increases more than offset higher raw material costs in dollar terms, though timing lags between inflation and price adjustments modestly diluted margins. Operating cash flow was $723 million, and free cash flow was $631 million, a 41 percent increase representing a 77 percent conversion of net income. During the quarter, the company returned over $1.2 billion to shareholders through dividends and share repurchases of $750 million. The effective tax rate for the quarter was 24.4 percent.

2026 Guidance

ITW is raising its full year 2026 GAAP EPS guidance by $0.15 to a narrowed range of $11.35 to $11.55 per share, representing 9 percent growth at the midpoint. Based on current demand levels and prevailing foreign exchange rates, the company is raising revenue growth guidance to a new range of 4 to 5 percent and raising organic growth guidance to 3 to 4 percent, a 1.5 percentage point increase at the midpoint.

Operating margin is projected to be in the range of 26.5 to 27.5 percent, with enterprise initiatives contributing more than 100 basis points. Free cash flow is projected to exceed 100 percent of net income, and the company expects to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is 23 to 24 percent.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the potential impact of tariffs, the company’s projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, and the company’s 2026 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the company’s expectations include those that are detailed in ITW’s Form 10-K for 2025 and subsequent reports filed with the SEC.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com.

    ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)
     Three Months Ended Six Months Ended June 30, June 30,In millions except per share amounts2026 2025 2026 2025Operating Revenue$4,301  $4,053  $8,317  $7,892 Cost of revenue 2,403   2,271   4,659   4,432 Selling, administrative, and research and development expenses 735   693   1,457   1,399 Amortization and impairment of intangible assets 16   21   34   42 Operating Income 1,147   1,068   2,167   2,019 Interest expense (79)  (74)  (152)  (142)Other income (expense) 12   4   32   16 Income Before Taxes 1,080   998   2,047   1,893 Income Taxes 265   243   464   438 Net Income$815  $755  $1,583  $1,455         Net Income Per Share:       Basic$2.85  $2.58  $5.51  $4.97 Diluted$2.84  $2.58  $5.50  $4.95         Cash Dividends Per Share:       Paid$1.61  $1.50  $3.22  $3.00 Declared$1.61  $1.50  $3.22  $3.00         Shares of Common Stock Outstanding During the Period:       Average 286.4   292.3   287.3   292.9 Average assuming dilution 287.0   292.9   288.1   293.7                  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)    In millionsJune 30, 2026 December 31, 2025Assets   Current Assets:   Cash and equivalents$839  $851 Trade receivables 3,564   3,227 Inventories 1,756   1,659 Prepaid expenses and other current assets 441   463 Total current assets 6,600   6,200     Net plant and equipment 2,235   2,230 Goodwill 5,074   5,098 Intangible assets 558   591 Deferred income taxes 489   519 Other assets 1,538   1,510  $16,494  $16,148     Liabilities and Stockholders' Equity   Current Liabilities:   Short-term debt$3,145  $2,286 Accounts payable 636   522 Accrued expenses 1,592   1,636 Cash dividends payable 457   465 Income taxes payable 123   217 Total current liabilities 5,953   5,126     Noncurrent Liabilities:   Long-term debt 6,549   6,683 Deferred income taxes 162   154 Other liabilities 935   959 Total noncurrent liabilities 7,646   7,796     Stockholders' Equity:   Common stock 6   6 Additional paid-in-capital 1,838   1,771 Retained earnings 30,812   30,150 Common stock held in treasury (28,004)  (26,875)Accumulated other comprehensive income (loss) (1,758)  (1,827)Noncontrolling interest 1   1 Total stockholders' equity 2,895   3,226  $16,494  $16,148          ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
 Three Months Ended June 30, 2026Dollars in millionsTotal RevenueOperating IncomeOperating MarginAutomotive OEM$857 $185 21.6 %Food Equipment 692  188 27.1 %Test & Measurement and Electronics 769  193 25.2 %Welding 549  178 32.4 %Polymers & Fluids 476  140 29.3 %Construction Products 494  151 30.6 %Specialty Products 468  148 31.5 %Intersegment (4) — — %Total Segments 4,301  1,183 27.5 %Unallocated —  (36)— %Total Company$4,301 $1,147 26.7 %           Six Months Ended June 30, 2026Dollars in millionsTotal RevenueOperating IncomeOperating MarginAutomotive OEM$1,677 $358 21.3 %Food Equipment 1,329  345 26.0 %Test & Measurement and Electronics 1,484  357 24.1 %Welding 1,056  341 32.3 %Polymers & Fluids 928  266 28.7 %Construction Products 952  286 30.0 %Specialty Products 899  283 31.4 %Intersegment (8) — — %Total Segments 8,317  2,236 26.9 %Unallocated —  (69)— %Total Company$8,317 $2,167 26.1 %           ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
 Q2 2026 vs. Q2 2025 Favorable/(Unfavorable)Operating
RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOrganic(0.4)%— %10.0 %13.9 %7.3 %2.0 %1.6 %4.5 %Acquisitions/
Divestitures— %— %1.3 %— %— %— %— %0.2 %Translation1.7 %1.6 %0.8 %0.8 %1.5 %2.3 %1.4 %1.4 %Operating
Revenue1.3 %1.6 %12.1 %14.7 %8.8 %4.3 %3.0 %6.1 %                          Q2 2026 vs. Q2 2025 Favorable/(Unfavorable)Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOperating Leverage(10) bps—250 bps220 bps140 bps40 bps20 bps90 bpsChanges in Variable
Margin & OH Costs20 bps(60) bps—(250) bps40 bps(40) bps(150) bps(50) bpsTotal Organic10 bps(60) bps250 bps(30) bps180 bps—(130) bps40 bpsAcquisitions/
Divestitures——(20) bps—————Restructuring/Other20 bps—10 bps(40) bps(20) bps(20) bps20 bps—Total Operating
Margin Change30 bps(60) bps240 bps(70) bps160 bps(20) bps(110) bps40 bps         Total Operating
Margin % *21.6%27.1%25.2%32.4%29.3%30.6%31.5%26.7%         * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets20 bps10 bps120 bps—80 bps10 bps20 bps40 bps **** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.04) on GAAP earnings per share for the second quarter of 2026.  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED) H1 2026 vs. H1 2025 Favorable/(Unfavorable)Operating
RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOrganic(0.6)%(1.3)%7.4 %10.0 %4.6 %0.4 %(1.5)%2.5 %Acquisitions/
Divestitures— %— %1.5 %— %— %— %— %0.3 %Translation3.4 %2.9 %2.0 %1.0 %2.5 %3.5 %2.6 %2.6 %Operating
Revenue2.8 %1.6 %10.9 %11.0 %7.1 %3.9 %1.1 %5.4 %                          H1 2026 vs. H1 2025 Favorable/(Unfavorable)Change in
Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITWOperating Leverage(10) bps(20) bps200 bps160 bps90 bps20 bps(30) bps50 bpsChanges in Variable
Margin & OH Costs70 bps(100) bps20 bps(180) bps80 bps(10) bps(40) bps(10) bpsTotal Organic60 bps(120) bps220 bps(20) bps170 bps10 bps(70) bps40 bpsAcquisitions/
Divestitures——(40) bps—————Restructuring/Other40 bps10 bps20 bps(30) bps(10) bps(10) bps30 bps10 bpsTotal Operating
Margin Change100 bps(110) bps200 bps(50) bps160 bps—(40) bps50 bps         Total Operating
Margin % *21.3%26.0%24.1%32.3%28.7%30.0%31.4%26.1%         * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets20 bps—130 bps—90 bps10 bps20 bps40 bps  **** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.09) on GAAP earnings per share for the first half of 2026.  ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

     Three Months Ended Six Months Ended June 30, June 30,Dollars in millions2026 2025 2026 2025Numerator:       Net Income$815  $755  $1,583  $1,455 Discrete tax benefit related to the first quarter 2026 —   —   (34)  — Discrete tax benefit related to the first quarter 2025 —   —   —   (21)Interest expense, net of tax (1) 59   56   115   108 Other (income) expense, net of tax (1) (9)  (3)  (24)  (12)Operating income after taxes$865  $808  $1,640  $1,530         Denominator:       Invested capital:       Cash and equivalents$839  $788  $839  $788 Trade receivables 3,564   3,320   3,564   3,320 Inventories 1,756   1,710   1,756   1,710 Net plant and equipment 2,235   2,177   2,235   2,177 Goodwill and intangible assets 5,632   5,596   5,632   5,596 Accounts payable and accrued expenses (2,228)  (2,157)  (2,228)  (2,157)Debt (9,694)  (8,937)  (9,694)  (8,937)Other, net 791   714   791   714 Total net assets (stockholders' equity) 2,895   3,211   2,895   3,211 Cash and equivalents (839)  (788)  (839)  (788)Debt 9,694   8,937   9,694   8,937 Total invested capital$11,750  $11,360  $11,750  $11,360         Average invested capital (2)$11,650  $10,996  $11,548  $10,741         Net income to average invested capital (3) 28.0 %  27.4 %  27.4 %  27.1 %After-tax return on average invested capital (3) 29.7 %  29.4 %  28.4 %  28.5 %                 (1) Effective tax rate used for interest expense and other (income) expense for the three months ended June 30, 2026 and 2025 was 24.4% in both periods. Effective tax rate used for interest expense and other (income) expense for the six months ended June 30, 2026 and 2025 was 24.3% and 24.2%, respectively.

(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

(3) Returns for the three months ended June 30, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 4. Returns for the six months ended June 30, 2026 and 2025 were converted to an annual rate by multiplying the calculated return by 2.

A reconciliation of the tax rate for the six month period ended June 30, 2026, excluding the first quarter 2026 discrete tax benefit of $34 million primarily related to the resolution of a U.S. tax audit, is as follows:

 Six Months Ended June 30, 2026Dollars in millionsIncome Taxes
 Tax RateAs reported$464  22.6 %Discrete tax benefit related to the first quarter 2026 34  1.7 %As adjusted$498  24.3 %        A reconciliation of the tax rate for the six month period ended June 30, 2025, excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

 Six Months Ended June 30, 2025Dollars in millionsIncome Taxes Tax RateAs reported$438  23.1 %Discrete tax benefit related to the first quarter 2025 21  1.1 %As adjusted$459  24.2 %        AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
   Twelve Months EndedDollars in millionsDecember 31, 2025Numerator: Net income$3,066 Net discrete tax benefit related to the third quarter 2025 (27)Discrete tax benefit related to the first quarter 2025 (21)Interest expense, net of tax (1) 222 Other (income) expense, net of tax (1) (32)Operating income after taxes$3,208   Denominator: Invested capital: Cash and equivalents$851 Trade receivables 3,227 Inventories 1,659 Net plant and equipment 2,230 Goodwill and intangible assets 5,689 Accounts payable and accrued expenses (2,158)Debt (8,969)Other, net 697 Total net assets (stockholders' equity) 3,226 Cash and equivalents (851)Debt 8,969 Total invested capital$11,344   Average invested capital (2)$10,959   Net income to average invested capital 28.0 %After-tax return on average invested capital 29.3 %     (1) Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2025 was 23.9%.

(2) Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.

A reconciliation of the 2025 effective tax rate, excluding the third quarter 2025 net discrete tax benefit of $27 million, which included a favorable discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit, and excluding the first quarter 2025 discrete tax benefit of $21 million related to the reversal of a valuation allowance on net operating loss carryforwards, is as follows:

 Twelve Months Ended December 31, 2025Dollars in millionsIncome Taxes
 Tax RateAs reported$900  22.7 %Net discrete tax benefit related to the third quarter 2025 27  0.7 %Discrete tax benefit related to the first quarter 2025 21  0.5 %As adjusted$948  23.9 %        FREE CASH FLOW (UNAUDITED)

      Three Months Ended Six Months Ended June 30, June 30,Dollars in millions2026 2025 2026 2025Net cash provided by operating activities$723  $550  $1,346  $1,142 Less: Additions to plant and equipment (92)  (101)  (187)  (197)Free cash flow$631  $449  $1,159  $945         Net income$815  $755  $1,583  $1,455         Net cash provided by operating activities to net income conversion rate 89 %  73 %  85 %  78 %Free cash flow to net income conversion rate 77 %  59 %  73 %  65 %                 Investor Relations & Media Contact:                                               
Erin Linnihan
Tel: 224.661.7431 
[email protected] | [email protected]                     

Fortinet (NASDAQ:FTNT | FTNT Price Prediction) heads into Wednesday’s Q2 earnings report with a record few cybersecurity companies can match: 24th consecutive quarter without an earnings miss. The business is generating record free cash flow, and is running a buyback program large enough to function as a de facto dividend. Here are 3 reasons this cybersecurity giant looks appealing ahead of earnings:

Product Revenue Just Accelerated 41% Fortinet’s Product revenue reaccelerated to +41% YoY in Q1, and billings jumped 31%, signaling the firewall refresh cycle around FortiOS 8.0 and the FortiGate G Series is live.

In addition, management raised FY26 guidance to $7.71B–$7.87B revenue and $3.10–$3.16 in non-GAAP EPS. The company’s Q1 earnings report drove a +28.17% 30-day move against the S&P 500’s +0.75%, which demonstrates how a strong report on Wednesday could elicit a meaningful market reaction.

Fortinet’s $10.25 Billion Share Buyback In Q1 alone, Fortinet repurchased $823 million of stock. These purchases have proven to be well timed, as the stock has since raced forward, and they show the business’s capability to return capital to shareholders.

Today, the company sits on a $10.25 billion total share repurchase authorization after a $1.0 billion board raise, and produced record free cash flow of $1.006 billion (+26.32% YoY) to fund it. The company’s net debt to EBITDA sits at -0.67, so the balance sheet has ample room to fund the buybacks directly.

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Fortinet’s Valuation Looks Reasonable Compared to Palo Alto Cybersecurity companies are known for trading at high multiples, but Fortinet looks reasonably valued compared to peers. The stock trades at a forward P/E of 52x against a business compounding at roughly 15% YoY revenue growth with a 31.3% operating margin and a 27.5% net margin. A competitor, Palo Alto Networks (NASDAQ:PANW), trades at a forward P/E of 78x with a TTM operating margin of -2.47%.

Strong Execution Is Offsetting Supply-Chain Pressure The bear case is valuation and lingering supply-chain risk. Both were the exact concerns cited by the last analyst downgrade, and both were answered in the same quarter Fortinet posted 41% product revenue growth and $1.01 billion of free cash flow. CEO Ken Xie framed it directly, noting the company’s “direct operations, manufacturing model and strong execution turn supply chain challenges into opportunities to gain market share.”

If the firewall refresh cycle continues, Fortinet can use its growing cash flow and $10.25 billion authorization to repurchase more shares. That combination gives long-term investors two potential return drivers: continued business growth and a steadily declining share count.

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Contact [email protected] for any questions or corrections.

Carrier Global (CARR - Free Report) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.61%. A quarter ago, it was expected that this company would post earnings of $0.5 per share when it actually produced earnings of $0.57, delivering a surprise of +14%.

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

Carrier Global, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $6.35 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.47%. This compares to year-ago revenues of $6.11 billion. 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.

Carrier Global shares have added about 31.2% since the beginning of the year versus the S&P 500's gain of 8.3%.

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $5.77 billion in revenues for the coming quarter and $2.79 on $22.17 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, Building Products - Air Conditioner and Heating is currently in the top 19% 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.

Fortune Brands Innovations (FBIN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This maker of products for the home, like faucets, cabinets, windows and doors is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -19%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Fortune Brands Innovations' revenues are expected to be $1.16 billion, down 3.4% from the year-ago quarter.

Corning (GLW - Free Report) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.63%. A quarter ago, it was expected that this specialty glass maker would post earnings of $0.7 per share when it actually produced earnings of $0.7, delivering no surprise.

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

Corning, which belongs to the Zacks Communication - Components industry, posted revenues of $4.74 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.94%. This compares to year-ago revenues of $4.05 billion. The company has topped consensus revenue estimates four 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.

Corning shares have added about 63.7% since the beginning of the year versus the S&P 500's gain of 8.3%.

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $4.8 billion in revenues for the coming quarter and $3.18 on $18.62 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, Communication - Components is currently in the top 20% 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.

Ooma (OOMA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026.

This internet phone service provider is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +39.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Ooma's revenues are expected to be $81.68 million, up 23.1% from the year-ago quarter.