The company reported adjusted earnings of $7.59, up from $6.84 a year ago, surpassing the Wall Street estimates of $7.02.
Adjusted EBITDA reached $4.027 billion, compared to $3.849 billion a year ago.
Admissions Growth And Medicaid Payments Support ResultsThe company also experienced positive factors including increased benefit from Medicaid Supplemental Payment Programs, growth in admissions, equivalent admissions and ER visits, and improved expense results.
Same facility admissions increased 2.5% and same facility equivalent admissions increased 2.7%. Same facility emergency room visits increased 3.6%.
Same facility inpatient surgeries declined 2.3%, and outpatient surgeries declined 3.4% in the quarter. Same facility revenue per equivalent admission increased 6.4%.
Surgical Volume And Payer Mix Weigh On PerformanceAs announced earlier, during the second quarter, the company experienced a payer mix shift driven by an increase in uninsured volume, primarily due to patients who lost coverage on the health insurance exchanges.
The company estimates this payer mix shift had an unfavorable impact on income before income taxes of approximately $400 million during the second quarter.
The amount includes an increase of approximately $75 million related to the company’s previous estimate of the first quarter health insurance exchange impact.
In addition, to a lesser degree, HCA Healthcare experienced a service mix shift primarily related to a decline in surgical volume.
HCA Reaffirms Full-Year 2026 OutlookHCA Healthcare reaffirmed fiscal 2026 earnings guidance of $28.70-$30.50 per share compared to the consensus of $29.70.
The company expects 2026 sales of $77 billion-$79.50 billion versus the consensus of $78.457 billion.
HCA Stock Price Activity: HCA Healthcare shares were up 3.62% at $390.12 at the time of publication on Friday, according to Benzinga Pro data.
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Healthcare Added 35,200 Jobs—3 Stocks Positioned to BenefitHCA Healthcare NYSE: HCA said its second-quarter performance reflected solid demand in several service lines and 11% growth in diluted earnings per share, but the company faced increased financial pressure as patients losing health insurance exchange coverage shifted largely into the uninsured population.
Chief Executive Officer Sam Hazen said the expiration of enhanced premium tax credits at the end of 2025 led more patients to lose exchange coverage than the company had anticipated. While HCA expected some individuals to move to other coverage options, Hazen said patients instead migrated “almost one for one” to uninsured status while continuing to require hospital care.
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The Aging of America Could Make HCA Healthcare a Long-Term Winner“The effects, as expected, were that many people became uninsured and still needed emergency care from hospitals,” Hazen said. He added that the impact in the first half of 2026 was greater than the company’s original estimates.
Payer Mix Shift Drives Updated Outlook Same-facility equivalent admissions among patients covered through health insurance exchanges declined 15% in the second quarter and year to date, according to Chief Financial Officer Mike Marks. Equivalent admissions among insured patients excluding exchange plans increased 3.2% in the second quarter, while total uninsured equivalent admissions rose 15%.
This ETF Is Proof That the Healthcare Rebound Is RealMarks said the exchange-related payer mix shift created an approximately $400 million unfavorable impact on adjusted EBITDA in the second quarter. That figure included about $75 million tied to a higher estimate of the first-quarter exchange impact.
The company now expects the full-year adjusted EBITDA impact from health insurance exchange changes to range from negative $1 billion to negative $1.2 billion. Marks said the updated outlook reflects the company’s conclusion that nearly all patients losing exchange coverage are becoming uninsured, compared with its prior assumption that 80% to 85% would do so. HCA also said its original expectation that uninsured patients would use fewer healthcare services did not materialize.
Three divisions—Gulf Coast, North Florida and South Atlantic—accounted for about half of the companywide exchange-related impact. Hazen said exchange adjusted admissions in those divisions declined between 25% and 28% in the first half.
HCA revised its full-year 2026 guidance to:
Revenue of $77 billion to $79.5 billion. Adjusted EBITDA of $15.4 billion to $16.1 billion. Net income attributable to HCA Healthcare of $6.3 billion to $6.7 billion. Diluted earnings per share of $28.70 to $30.50. Marks said the revised outlook is more consistent with HCA’s long-term adjusted EBITDA growth target of 4% to 6%, following moderation from the company’s 2025 growth rate and its initial 2026 assumptions.
Medicaid Programs Offset Pressure in the Quarter The company recognized approximately $400 million of incremental net benefit from Medicaid supplemental payment programs during the second quarter. That included a $540 million incremental net benefit related to a recently approved Florida program covering the period from Oct. 1, 2024, through June 30, 2026, or 21 months.
The Florida benefit was partly offset by retroactive payments received in the second quarter of 2025. HCA’s annual guidance assumes a net Medicaid supplemental-payment benefit of $300 million to $500 million, but Marks said the outlook implies a $100 million to $300 million headwind in the second half because prior program approvals and retroactive payments are expected to exceed the incremental benefit from the Florida program.
Hazen described Medicaid supplemental programs as important to supporting access to care for Medicaid patients, particularly as hospitals provide more uncompensated care to uninsured patients.
Demand Growth Continues, Though Surgeries Decline Same-facility admissions increased 2.5% in the second quarter, while equivalent admissions rose 2.7%. Emergency room visits increased 3.6%, with cardiac procedures and rehabilitation volumes also contributing to demand.
However, inpatient surgeries declined 2.3% and outpatient surgeries fell 3.4%. Hazen attributed much of the decline to reduced demand for elective procedures, including patients previously covered through exchange plans. He also cited physician feedback regarding affordability pressures affecting patients and the effect of Medicare inpatient rule changes that have shifted some cases from inpatient to outpatient settings.
Emergency inpatient surgeries, which account for about two-thirds of HCA’s inpatient surgical cases, increased 2% year over year through the first six months. By contrast, elective inpatient surgeries were down 6% this year, compared with a 2% decline in the prior year.
Despite the surgical weakness, Hazen said the company remains encouraged by demand and continues to expect long-term demand growth of 2% to 3%, supported by population growth and market trends in its communities.
Capital Investment and Cost Initiatives HCA has approved more than $7 billion of capital spending expected to come online over the next three years. The investments include 1,000 to 1,200 additional inpatient beds, new hospitals in certain markets, and additional outpatient facilities.
Hazen said the company had approximately 42,000 beds currently in operation, up from roughly 37,000 at the end of 2018. Occupancy increased to 75% from 71% over that period. HCA also had 5% more outpatient sites of care in the second quarter than a year earlier and expects another 250 to 300 outpatient facilities in its capital or acquisition pipeline to open later this year or early next year.
The company spent $1.2 billion on capital expenditures during the quarter, repurchased $2.1 billion of shares and paid $171 million in dividends. Cash flow from operations was $2.3 billion, down 45% year over year, primarily because of the timing of Florida Medicaid supplemental-payment cash flows and the prior-year deferral of federal income tax payments.
HCA maintained its planned 2026 capital expenditure range of $5 billion to $5.5 billion and said it currently expects to complete most of its existing share-repurchase authorization, subject to market conditions and other factors.
On costs, Marks said same-facility cost per equivalent admission, including the effect of Medicaid supplemental payment programs, was essentially flat from a year earlier and improved 1.4% sequentially. He said HCA’s financial resiliency program—which includes digital transformation, global capabilities and expanded shared services—is intended to produce multiyear efficiency benefits. Professional fees remained elevated, rising about 8.5% year over year in the quarter, primarily due to anesthesia and radiology costs.
About HCA Healthcare (NYSE:HCA)HCA Healthcare is a for‑profit operator of healthcare facilities headquartered in Nashville, Tennessee. Founded in 1968, the company owns and operates a network of hospitals and related healthcare facilities and has grown through organic expansion and acquisitions to become a large provider of inpatient and outpatient services.
The company's core activities include the operation of acute care hospitals, freestanding surgical and emergency centers, and outpatient clinics. HCA's services encompass inpatient care, surgical services, emergency medicine, diagnostic imaging and laboratory testing, and various outpatient and ambulatory care offerings.
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Key Takeaways HCA posted Q2 adjusted EPS of $7.59, beating estimates as revenues climbed 8.7% year over year.HCA saw higher admissions, revenue per admission and ER visits, while inpatient and outpatient surgeries fell.HCA narrowed revenue guidance but reduced adjusted EBITDA, net income and diluted EPS forecasts for 2026. HCA Healthcare, Inc. (HCA - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $7.59, which beat the Zacks Consensus Estimate of $7.57. The bottom line advanced 11% year over year.
Revenues rose 8.7% year over year to $20.2 billion. The top line was in line with the Zacks Consensus Estimate.
The quarterly results benefited from higher same-facility admissions, strong revenue per equivalent admission and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
HCA Healthcare, Inc. Price, Consensus and EPS SurpriseHCA’s Q2 DetailsSame-facility equivalent admissions grew 2.7% year over year in the second quarter, beating our growth estimate of 2%. Meanwhile, same-facility admissions increased 2.5%, also surpassing our growth estimate of 1.8%.
Same-facility revenue per equivalent admission rose 6.4% year over year but came in higher than our growth estimate of 4.2%.
Same-facility inpatient surgeries fell 2.3% year over year, while same-facility outpatient surgeries dipped 3.4%. Same-facility emergency room visits inched up 3.6% year over year in the quarter.
Salaries and benefits, supplies and other operating expenses increased 9.8% year over year to $16.2 billion. The metric came in higher than our estimate of $15.4 billion.
Adjusted EBITDA of $4 billion advanced 4.6% year over year, which marginally beat our estimate of $3.9 billion.
HCA Healthcare operated 190 hospitals and roughly 2,600 ambulatory sites of care across 19 states and the United Kingdom as of June 30, 2026.
HCA’s Q2 Financial UpdateHCA Healthcare exited the second quarter with approximately $1 billion in cash and cash equivalents, down 2.6% from the 2025-end level. It had approximately $3.1 billion of available capacity under its credit facilities at the end of the reported quarter.
Total assets of $63.3 billion increased 4.2% from 2025-end figure.
Long-term debt, excluding debt issuance costs and discounts, was $43.5 billion, up 4.4% from the figure as of Dec. 31, 2025. Short-term borrowings and long-term debt due within a year totaled $6.3 billion.
Capital expenditures, excluding acquisitions, amounted to $1.2 billion during the quarter.
HCA’s Cash FlowCash flows from operating activities declined 44.5% year over year to $2.3 billion in the second quarter of 2026.
HCA Healthcare’s Capital Deployment UpdateHCA bought back shares worth approximately $2.1 billion in the second quarter. It had about $7.2 billion remaining under its share repurchase authorization as of June 30, 2026. The board also declared a quarterly cash dividend of 78 cents per share, payable on Sept. 30, 2026, to shareholders of record as of Sept. 16, 2026.
HCA Revises 2026 GuidanceRevenue guidance has been revised to $77.0-$79.5 billion from the previous $76.5-$80.0 billion, raising the lower end by $0.5 billion and lowering the upper end by $0.5 billion. The midpoint of the revised range implies 3.5% growth from the 2025 reported figure.
Adjusted EBITDA guidance has been narrowed to $15.4-$16.1 billion from $15.55-$16.45 billion. The midpoint suggests about 1.2% growth from the 2025 reported figure.
Net income guidance was lowered to $6.3-$6.7 billion from $6.495-$7.035 billion. The midpoint implies about a 4.2% decline from the 2025 reported figure.
Diluted EPS guidance was lowered to $28.70-$30.50 from $29.10-$31.50. The midpoint implies about 4.5% growth from the 2025 reported figure.
Capital expenditures, excluding acquisitions, remain projected in the range of $5.0-$5.5 billion.
HCA’s Zacks Rank & Key PicksHCA currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Charles River Laboratories International, Inc. (CRL - Free Report) , CVS Health Corporation (CVS - Free Report) and Cencora, Inc. (COR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Charles River is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $2.72 per share, which has witnessed one upward revision and one downward revision over the past 30 days. The company beat on earnings in each of the trailing four quarters, with the average surprise being 9.3%. The consensus estimate for Charles River’s second-quarter revenues is pinned at $970.77 million.
CVS Health is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, indicating a 3.3% year-over-year increase. The company beat on earnings in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for CVS Health’s second-quarter revenues is pinned at $100.18 billion, indicating a 1.3% year-over-year increase.
Cencora is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $4.37 per share, indicating a 9.3% year-over-year increase. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 1.6%. The consensus estimate for Cencora’s second-quarter revenues is pinned at $84.89 billion, indicating a 5.2% year-over-year increase.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Houston, CenterPoint Energy (CNP - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 15.36%. Currently paying a dividend of $0.23 per share, the company has a dividend yield of 2.08%. In comparison, the Utility - Electric Power industry's yield is 3.1%, while the S&P 500's yield is 1.33%.
Looking at dividend growth, the company's current annualized dividend of $0.92 is up 4.5% from last year. Over the last 5 years, CenterPoint Energy has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.33%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CenterPoint's current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.
CNP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $1.91 per share, which represents a year-over-year growth rate of 8.52%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CNP presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
CenterPoint Energy (CNP - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for CenterPoint is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For CenterPoint, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for CenterPointFor the fiscal year ending December 2026, this energy delivery company is expected to earn $1.91 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for CenterPoint. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of CenterPoint to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Unum is expected to benefit from favorable persistency and stronger sales across its insurance businesses. UNM's key operating segments are likely to see growth from voluntary benefits, life and disability products. Unum is expected to face higher expenses, while continued share buybacks may support earnings. Unum Group (UNM - Free Report) is expected to register an improvement in its bottom line but a decline in the top line when it reports second-quarter 2026 results on July 28, after the closing bell.
The Zacks Consensus Estimate for UNM’s second-quarter revenues is pegged at $2.95 billion, indicating a 12.6% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.14 per share. The Zacks Consensus Estimate for UNM’s second-quarter earnings has moved south by 0.4% in the past 30 days. The estimate suggests a year-over-year increase of 3.3%.
What the Zacks Model Unveils for UNMOur proven model does not conclusively predict an earnings beat for Unum Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Unum Group has an Earnings ESP of -0.89%. This is because the Most Accurate Estimate of $2.13 is pegged lower than the Zacks Consensus Estimate of $2.14. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Unum Group currently carries a Zacks Rank #3.
Factors Likely to Shape Q2 Results of UNMFavorable persistency and better sales in the operating segments are likely to have favored premiums in the second quarter. Our estimate and the Zacks Consensus Estimate for premium income are both pegged at $2.6 billion.
Net investment income is likely to have increased due to higher invested assets and higher miscellaneous investment income. Our estimate for investment income is pegged at $297.3 million, suggesting a 47% decrease from the year-ago quarter. The Zacks Consensus Estimate is pegged at $269 million.
The performance of Unum U.S. and Colonial Life — two of the largest operating segments — is likely to have been driven by stable overall persistency in the voluntary benefits and dental and vision product lines, and higher prior period sales in the voluntary benefits product line, improved benefit experience across life, accident, sickness, and disability product lines, and in-force block growth.
Better performance in life and group disability is likely to aid Unum U.S. results.
Our estimate for Unum U.S. operating revenues is pegged at $2 billion, while the same for Colonial Life is pinned at $516.5 million.
Favorable results at group long-term disability, Group Life and Supplemental are likely to have favored Unum UK. This, combined with in-force block growth, sales and favorable overall persistency at Unum Poland, is likely to have benefited Unum International. Our estimate for Unum International’s operating revenues is pegged at $336.1 million.
Expenses are likely to have increased because of higher policy benefits, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses.
Continued share buybacks are likely to have contributed to the bottom line.
Stocks to ConsiderSome insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Aflac Incorporated (AFL - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 0.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AFL’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61, indicating a year-over-year decrease of 5.5%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23, indicating a year-over-year decrease of 1.8%.
AXS’s earnings beat estimates in each of the last four reported quarters.
Key Takeaways IQVIA's Q2 revenues are expected to rise 6.7% y/y to $4.3 billion, with EPS at $3.02.Commercial solutions growth is expected from drug launches, AI demand and Data-as-a-Service adoption.AI-led workflow gains and backlog conversion are expected to support research and development solutions. IQVIA Holdings Inc. (IQV - Free Report) is set to release second-quarter 2026 results on July 28, before market open.
IQV has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 1.6%.
IQVIA’s Q2 ExpectationsThe Zacks Consensus Estimate for revenues is pegged at $4.3 billion, implying 6.7% year-over-year growth. Growth in the top line is likely to have been stimulated by an efficient use of AI across its business lines.
Revenue gains in the commercial solutions segment are expected to have emanated extensively from rising drug launch activity. Surging demand for the company’s exclusive AI capabilities, tailored AI agents and AI-ready data foundations is anticipated to have added to the growth trajectory.
We expect the rapid adoption of Data-as-a-Service, resulting in multi-year client agreements and enterprise-wide platform adoptions, enhancing commercial intelligence and analytics, to have acted as a major catalyst to this segment’s growth.
For the research and development solutions segment, we expect IQVIA to have leveraged AI to optimize workflow, accelerate study execution and cut down errors, thus improving its revenues. Scheduled conversion of contracted backlogs into revenues over the upcoming months is likely to have contributed to the segment’s growth.
The consensus estimate for earnings per share is $3.02, implying 7.5% year-over-year growth. Enhancement in operational prowess springing from high-margin revenue growth across segments is anticipated to have benefited the bottom line.
What Our Model Says About IQVOur proven model does not conclusively predict an earnings beat for IQVIA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
IQV has an Earnings ESP of -2.98% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are a few stocks from the broader Medical sector, which, according to our model, have the right combination of elements to beat on earnings this time around.
Alcon (ALC - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $2.8 billion, indicating 7.3% year-over-year growth. For earnings, the consensus mark is pinned at 77 cents per share, moving up 1.3% from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 3.7%.
ALC carries an Earnings ESP of +3.13% and a Zacks Rank of 3 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 10.
Waters (WAT - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pinned at $1.6 billion, hinting at 3% year-over-year growth. For earnings, the consensus mark is pinned at $3.01 per share, improving 2% from the year-ago quarter’s reported figure. WAT beat the consensus estimate for earnings in the trailing four quarters, with an average surprise of 6%.
WAT has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 4.
Key Takeaways Liquidia's Yutrepia launch has driven strong sales, adoption and three straight profitable quarters. LQDA projects far faster 2026 revenue and EPS growth, backed by rising earnings estimates.United Therapeutics counters with a broad PAH portfolio and late-stage ralinepag pipeline. Liquidia Corporation (LQDA - Free Report) is a commercial-stage biopharmaceutical company focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
United Therapeutics (UTHR - Free Report) boasts six FDA-approved therapies that treat PAH, PH-ILD, and neuroblastoma, a rare pediatric cancer, in its portfolio.
Liquidia and United Therapeutics are locked in a fierce battle in the PAH market, with Liquidia's Yutrepia emerging as a challenger to United Therapeutics' blockbuster Tyvaso franchise. Their competition extends beyond commercial sales to patent disputes and a race to capture a larger share of the inhaled treprostinil market.
Given this backdrop, selecting one stock over the other can be difficult. We therefore evaluate their fundamentals, growth prospects, challenges and valuation metrics to help make an informed decision.
The Case for LQDALiquidia currently markets Yutrepia (treprostinil) inhalation powder, approved by the FDA in May 2025 and launched the following month commercially.
The company also generates revenues through a profit-sharing agreement with Sandoz for the promotion of its generic treprostinil injection in the United States.
Yutrepia is an inhaled dry-powder formulation of treprostinil developed using Liquidia's proprietary PRINT particle engineering technology. The platform is designed to enhance deep lung drug delivery, simplify administration through a low-effort dry-powder inhaler and enable higher dose levels than currently marketed inhaled treprostinil therapies.
The company supports commercialization through a specialized sales force focused on physicians treating PAH and PH-ILD, as well as stakeholders involved in reimbursement and drug distribution.
Since its launch in June 2025, Yutrepia has emerged as a strong growth driver, generating approximately $130 million in first-quarter 2026 sales. The therapy has demonstrated robust adoption, with more than 4,500 unique prescriptions, around 3,750 patients initiating treatment, and nearly 1,000 physicians prescribing the drug.
Its rapid uptake helped Liquidia post its third consecutive profitable quarter, highlighting Yutrepia's growing commercial success.
Beyond its commercial portfolio, Liquidia is advancing a pipeline of therapies for pulmonary vascular diseases. Its lead pipeline candidate, L606, is an investigational liposomal formulation of treprostinil administered twice daily via a next-generation nebulizer. L606 is being evaluated in an open-label study for PAH and PH-ILD, while a global pivotal placebo-controlled trial is underway in PH-ILD.
Liquidia also plans to expand Yutrepia into additional indications, including pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD), idiopathic pulmonary fibrosis (IPF), progressive pulmonary fibrosis (PPF) and Raynaud's phenomenon associated with systemic sclerosis.
The Case for UTHRUnited Therapeutics markets a broad PAH portfolio led by Tyvaso DPI, a dry-powder inhaled formulation of the prostacyclin analogue treprostinil, which was approved by FDA in May 2022 to improve exercise ability in patients with PAH and PH-ILD.
Its portfolio includes nebulized Tyvaso, a nebulized liquid inhaled formulation of treprostinil, approved by the FDA to improve exercise ability in patients with PAH and PH-ILD.
The company also markets Remodulin, a continuously infused treprostinil therapy for PAH administered subcutaneously or intravenously, supported by the user-friendly RemunityPRO infusion pump. Its PAH portfolio further includes Orenitram, an oral extended-release treprostinil tablet, and Adcirca (tadalafil), an oral PDE-5 inhibitor licensed from Eli Lilly through the end of 2026.
Sales of Tyvaso products continue to grow, driven by higher volumes and continued growth in commercialization utilization. Moreover, Orenitram offers a convenient oral treatment option that avoids the challenges associated with continuous infusion therapies, such as Remodulin, and inhaled therapies requiring multiple daily administrations.
The company remains focused on developing additional therapies for PAH and pulmonary fibrosis (PF).
Ralinepag, an investigational, highly selective and potent prostacyclin (IP) receptor, is one of United Therapeutics' most promising late-stage pipeline assets. The candidate is being developed in two formulations — an oral version and a DPI version (RAL-DPI).
Based on positive data from the pivotal phase III ADVANCE OUTCOMES study, United Therapeutics intends to submit a new drug application for ralinepag (to treat PAH) to the FDA by the second half of 2026.
If approved, oral ralinepag could strengthen United Therapeutics’ leadership in PAH and potentially offset future competitive pressure on older products.
Beyond the oral formulation, United Therapeutics is also developing inhaled dry-powder versions of ralinepag, RAL-DPI, in collaboration with MannKind Corporation. While initially targeting PAH, management sees opportunities for RAL-DPI in PH-ILD, IPF and PPF. Together, the oral and inhaled formulations position ralinepag as a potential cornerstone of United Therapeutics' future growth strategy.
Outside its PAH franchise, the company markets Unituxin for the treatment of high-risk neuroblastoma.
UTHR strengthened its long-term regenerative medicine strategy by acquiring preclinical stage biotech Thymmune Therapeutics for $140 million upfront, with up to $160 million in milestone payments. The deal adds THY-100, a stem cell-derived thymic cell therapy being developed for congenital athymia, and a platform with potential applications in organ transplantation, autoimmune diseases and immune deficiencies. The acquisition broadens United Therapeutics' pipeline beyond PAH.
A Look at Estimates: LQDA versus UTHRThe Zacks Consensus Estimate for LQDA’s 2026 sales implies a year-over-year increase of 315.77%, while that for earnings per share (EPS) suggests a year-over-year improvement of 477.5%. The Zacks Consensus Estimate for 2026 EPS has moved north to $3.02 from $2.97 and that for 2027 EPS has increased to $4.92 from $4.81 in the past 60 days.
LQDA’s Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UTHR’s 2026 sales implies a year-over-year increase of 1.46%, while that for EPS suggests a year-over-year decline of 4.41%. EPS estimates for 2026 have moved south to $26.63 in the past 60 days but those for 2026 have moved north to $31.66 from $31.09 during the said time frame.
UTHR’s Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of LQDA and UTHRFrom a price-performance perspective, LQDA has fetched better returns than UTHR so far in the year. Shares of LQDA have surged 158.2%, while those of UTHR have gained 8.7%. The industry has gained 1.4% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, LQDA is more expensive than UTHR. LQDA’s shares currently trade at 8.74X forward sales, higher than 6.50X for UTHR.
Image Source: Zacks Investment Research
Which Stock Is a Better Pick for Now?LQDA currently sports a Zacks Rank #1 (Strong Buy), while UTHR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Although United Therapeutics remains the established leader in PAH with a diversified portfolio, a robust late-stage pipeline and expansion into regenerative medicine, much of its growth appears incremental.
In contrast, Liquidia is in the early stages of a rapid commercial expansion, driven by the impressive launch of Yutrepia, expanding label opportunities and a promising pipeline. The company's superior revenue and earnings growth outlook, upward estimate revisions, stronger year-to-date share price performance and better Zacks Rank outweigh its premium valuation.
While UTHR remains a solid long-term holding, Liquidia offers the more compelling growth story and greater upside potential at current levels, making LQDA the better pick for investors seeking higher returns.
Signature Youth Initiative Anchors the Second Annual Impacting the Carolinas Campaign; First Horizon Bank Named Presenting Partner of Bee-Ball For All
, /PRNewswire/ -- The Charlotte Hornets have announced First Horizon Bank (NYSE: FHN or "First Horizon") as the presenting partner of Bee-Ball for All, the organization's signature youth engagement platform and cornerstone of the second annual Impacting the Carolinas initiative. Through Bee-Ball for All presented by First Horizon Bank, the Hornets will distribute 10,000 basketballs to youth through participating Boys & Girls Club locations across North and South Carolina, expanding access to the game while creating opportunities for mentorship, literacy, wellness and community engagement throughout the region.
First Horizon Bank and Charlotte Hornets Bee-Ball for All Event - Northridge Middle School, Charlotte NC To officially tip off the initiative, Hornets, First Horizon Bank and Boys & Girls Club leaders – along with Hornets Legend Muggsy Bogues – gathered at Northridge Middle School on Thursday, July 23 for a formal announcement and youth basketball clinic celebrating the launch of the two-state distribution effort. The event served as the beginning of a broader effort that will place 10,000 basketballs into the hands of children across North and South Carolina.
"This isn't just about giving away basketballs; it's about opening doors for youth development in multiple ways," said Justin Rutledge, Senior Vice President and Charlotte Market President for First Horizon Bank. Laura Bunn, Executive Vice President and Mid-Atlantic Regional President for First Horizon Bank added, "Sports also build teamwork, discipline and skills youth will carry through their lives. While we're proud to celebrate in Charlotte today, the mission reaches far beyond this community. Bee-Ball for All helps us connect with youth across the Carolinas, so opportunities aren't limited to one city, but shared across more than 200 Boys & Girls Clubs spanning North and South Carolina."
"Partnerships like this allow us to make a greater impact than we ever could alone. We are incredibly grateful to First Horizon Bank for sharing our commitment to investing in youth and strengthening communities throughout the Carolinas," said Hornets Sports & Entertainment Senior Vice President of Community Impact Betsy Mack. "Together, we are creating opportunities for young people to grow, learn, build confidence and connect through the game of basketball."
Launched in 2025, Impacting the Carolinas is designed to strengthen Hornets Sports & Entertainment's community impact and regional presence across North and South Carolina while reinforcing the organization's commitment to being the Team of the Carolinas.
About First Horizon
First Horizon Corp. (NYSE: FHN), with $84.4 billion in assets as of June 30, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
About Hornets Sports & Entertainment
Hornets Sports & Entertainment (HSE) owns the Charlotte Hornets and the Greensboro Swarm (NBA G League), and operates Spectrum Center, the premier destination for sports and entertainment in the Carolinas. Charlotte's first professional sports team, the Hornets joined the NBA in 1988 and are a member of the Eastern Conference's Southeast Division. HSE is committed to positively impacting the Carolinas through community programming and the Charlotte Hornets Foundation. Spectrum Center is celebrating its 20th anniversary and reopened following a two-phased renovation as a fully transformed world-class arena in the heart of Uptown Charlotte. Through the years, Spectrum Center has hosted nearly 2,500 events and has welcomed more than 25 million guests. Directly across from Spectrum Center, the state-of-the-art Novant Health Performance Center is being built to enhance player development and foster a culture of high performance.
For more information, please visit hornets.com, gsoswarm.com or spectrumcentercharlotte.com
Two hot tech stocks and a quieter healthcare mover take the attention of @Stockstotrade's Tim Bohen to close out the trading week. He sees Alphabet (GOOGL) tapping notable support as a tentative buy opportunity, expects Super Micro (SMCI) to make a similar bull run it saw earlier this week, and points to CVS Health (CVS) as a reliable, low beta stock.
First Hawaiian NASDAQ: FHB executives said the bank delivered loan growth, wider net interest margin and continued solid credit quality in the second quarter of 2026, while preparing for its proposed combination with TriCo Bancshares.
Chairman, President and CEO Bob Harrison said the company was “very excited” about the TriCo transaction, which is expected to close near the end of the year. He said First Hawaiian is focused on the work required to complete the deal and does not have additional information beyond what was presented during its July 23 investor call.
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Hawaii economy and loan growth Harrison pointed to relatively stable economic conditions in Hawaii. The statewide employment rate was 2.5% in May, compared with a national unemployment rate of 4.3%. Total visitor arrivals through May rose 2.9% from a year earlier, driven primarily by visitors from the U.S. mainland and Japan, while year-to-date visitor spending reached $9.7 billion, up 7.5% from 2025 levels.
Hawaii housing prices also remained firm. The median Oahu single-family home sales price was $1.2 million in June, up 10.4% year over year, while the median condo price was $528,000, up 3.5%.
Total loans increased $137 million during the quarter, representing annualized growth of about 3.6%. Growth was led by commercial and industrial, or C&I, lending and commercial real estate lending. C&I balances increased $98 million, primarily because of dealer-flooring growth and expansion in the company’s Hawaii corporate portfolio.
Completed construction projects resulted in the conversion of $95 million in construction loan balances into commercial real estate loans. Construction loan payoffs and lower residential balances partly offset the broader growth, as residential payoffs exceeded new production.
Harrison said management continues to see a “very robust pipeline” in C&I and commercial real estate, with construction activity representing a meaningful portion of commercial real estate opportunities. The bank also is working with some new customer relationships, he said. Residential lending, however, is expected to remain slow because of the interest-rate environment.
Deposits, margin and earnings outlook Total deposits declined $623 million in the second quarter, largely due to expected public-deposit outflows. Chief Financial Officer Jamie Moses said retail deposits were essentially flat, while commercial deposits fell about $156 million because of seasonal volatility. Public deposits declined $467 million, mainly in operating accounts, and public time deposits decreased by $115 million. The remaining public time-deposit balance was $9 million.
Moses said the declines did not reflect lost customer relationships. Municipal partners found other ways to invest certain balances off the bank’s balance sheet, he said, while First Hawaiian expects retail and commercial deposits to increase in the second half because of seasonal patterns. The company’s noninterest-bearing deposit ratio was 32%, and its total cost of deposits declined two basis points from the first quarter.
Net interest income increased $3.5 million sequentially to $171 million. Net interest margin rose six basis points to 3.25%, helped by deposit mix and repricing, higher loan and securities yields, and lower cash balances.
Management revised its full-year net interest margin outlook to a range of 3.24% to 3.25%, based on market expectations for one rate increase later this year. First Hawaiian expects third-quarter margin of about 3.27%. Moses said the company assumed a rate increase early in the fourth quarter in its outlook.
The balance sheet remains asset-sensitive, according to Harrison. Moses said roughly $6 billion of assets would reprice immediately following a rate increase based on SOFR, while approximately $3.5 billion to $4 billion of liabilities would also reprice to some degree.
Cash balances declined in the quarter primarily because of public-deposit outflows. Management expects to keep cash around the quarter-end level, approximately $1 billion, through the rest of the year, even as it anticipates further loan growth.
Fees, expenses and credit quality Noninterest income totaled $60.3 million, aided by higher bank-owned life insurance income, an excise tax refund and increased swap fees. Moses said the BOLI contribution reflected a component of the portfolio that is sensitive to market movements rather than a death benefit.
First Hawaiian maintained its full-year noninterest income outlook of about $220 million. Moses said the company generally views approximately $55 million per quarter as a baseline, though one-time or market-related items can cause quarterly variation.
Noninterest expense was $130.4 million, including $4.2 million in costs related to the TriCo transaction. The company expects more transaction costs in the second half as it moves toward closing and integration. Excluding TriCo-related costs, First Hawaiian expects reported expenses of $515 million to $520 million for the full year.
Moses said higher second-half expenses will reflect continued hiring to support loan growth, along with project-related salary, professional-services and information-technology costs.
Chief Risk Officer Lea Nakamura said credit performance and credit metrics remained healthy. The allowance for credit losses declined both in dollar terms and relative to coverage, primarily because of a material reduction in classified assets.
The company reported a return on average tangible assets of 1.28% and a return on average tangible equity of 16.34% for the quarter. Its effective tax rate was 22.9%.
TriCo transaction and capital plans Harrison said First Hawaiian did not repurchase shares during the second quarter and is unlikely to conduct buybacks for the remainder of the year while the TriCo deal proceeds through regulatory review, though he said that could change. The company’s common equity tier 1 ratio remained above 13%, according to an analyst’s question during the call.
Management reiterated a target of 25% cost savings from the TriCo transaction. Moses said the company remains comfortable with that objective and expects to achieve it through a variety of measures, but did not provide further detail.
Harrison said three TriCo executives—Richard Smith, Dan Bailey and Peter G. Wiese—are expected to join First Hawaiian’s senior management team. He said First Hawaiian intends to retain much of TriCo’s management team, describing the California bank as a well-run institution that First Hawaiian plans to support while learning from its operations.
About First Hawaiian (NASDAQ:FHB)First Hawaiian, Inc is the oldest and largest bank in Hawaii, operating as the bank holding company for First Hawaiian Bank. Established in 1858, the company offers a full suite of financial services to individual, business and institutional clients. Its product portfolio includes consumer and commercial lending, deposit accounts, treasury and cash management, foreign exchange and trade finance, as well as wealth management and trust services.
First Hawaiian serves customers through an extensive network of branches, ATMs and digital channels across the Hawaiian Islands, Guam, Saipan and American Samoa.
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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SouthState Bank NYSE: SSB reported second-quarter 2026 results marked by continued loan growth, stable net interest margin, low credit losses and ongoing investment in banker recruiting and artificial intelligence initiatives.
Chief Executive Officer John Corbett said the company generated a 1.36% return on assets and a 17.6% return on tangible common equity during the quarter. He said results reflected “solid balance sheet growth, stable margins, improving efficiency, and continued strength in credit quality.”
Over the past year, loans increased 8% and deposits rose 5%, both within the company’s previously issued guidance ranges. During the second quarter, loan growth totaled $1.35 billion, representing an 11% annualized rate. Average loan growth also ran at an 11% annualized pace.
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Corbett said growth was broad-based across SouthState’s footprint, with Florida leading the company in loan-growth dollars. Florida, Texas and South Carolina were the largest contributors by dollar amount, while Atlanta, Virginia and Alabama posted strong percentage growth, including commercial and industrial lending gains in Atlanta.
Recruiting Supports Growth Strategy SouthState has expanded its commercial banking sales force by more than 10% over the past three quarters as it seeks to capitalize on disruption in its markets. Corbett said the company had offered division presidents the opportunity to increase their commercial relationship manager teams by 15% to 20% over several years.
The newer hires have generated $600 million of loan production so far and have a $1.5 billion pipeline, according to Corbett. Texas has been the strongest market for sales-force expansion, with its commercial relationship manager count up 25%.
The company expects loan growth to remain in the mid- to upper-single-digit range. Corbett said SouthState sees a potential mix shift in the second half, with commercial and industrial lending expected to increase while planned commercial real estate payoffs, including multifamily projects, rise.
Construction lending increased during the quarter, driven partly by owner-occupied projects for commercial clients and multifamily construction. However, Corbett noted that the overall construction category remained about 10% below its level a year earlier.
Margin Outlook Remains Stable SouthState reported a net interest margin of 3.78%, down 1 basis point from the first quarter and within its 3.75% to 3.80% guidance range. Deposit costs were unchanged from the prior quarter at 1.76%, while loan yields declined 5 basis points to 5.91% due to lower purchase-accounting accretion income.
Excluding accretion, loan yields increased 1 basis point and net interest margin rose 4 basis points, the company said. Net interest income totaled $576 million, up $14 million from the first quarter.
Chief Strategy Officer Steve Young said management’s outlook assumes no interest-rate increases or reductions through 2027 and calls for net interest margin to remain within the 3.75% to 3.80% range. He said deposit costs could rise modestly as the company funds loan growth, but anticipated asset repricing should help support the margin.
SouthState said approximately 76% of quarterly loan production carried floating rates. The share of the overall loan portfolio in floating-rate loans has increased to 38%, from 32% a year earlier.
Management also pointed to future repricing opportunities, including roughly $6 billion of loans expected to reprice over the next year and about $1 billion of securities expected to cash flow and be reinvested. Young said legacy loans with coupons in the 3% to 4% range are being replaced at rates in the 6% range.
Credit Quality and Expenses Credit quality improved during the quarter. Nonperforming assets declined 14%, classified loans also decreased, and net charge-offs were 6 basis points. It was the eighth time in the past nine quarters that SouthState’s net charge-offs were below 10 basis points.
Provision expense was $16 million, primarily reflecting loan growth. Management said it expects modest downward pressure on reserve levels absent meaningful changes in Moody’s economic forecasts and other loss drivers. The company continues to use a more conservative weighting toward Moody’s pessimistic scenario than its traditional model weighting.
Noninterest income was $97 million, or 57 basis points of average assets, within the company’s 55- to 60-basis-point guidance range. The figure was $3 million below the first quarter, as higher deposit fees were offset by lower mortgage revenue. SouthState said it continues to expect correspondent banking revenue of roughly $25 million per quarter.
Noninterest expense totaled $358 million, slightly better than guidance. Management maintained its forecast for 4% noninterest expense growth in 2026. It expects compensation costs to rise in the second half as recently hired employees remain in the run rate and company merit increases take effect July 1.
Capital Returns and Technology Investment SouthState repurchased 1 million shares during the quarter at a weighted average price of $97.62, producing a 68% total payout ratio including dividends. Year-to-date repurchases totaled 2.5 million shares and the total payout ratio was 80%.
Corbett said the company repurchased nearly 5% of its outstanding shares over the past year while increasing its dividend and maintaining a common equity tier 1 capital ratio above 11%. CET1 ended the quarter at 11.1%, tangible common equity was 8.7%, and tangible book value per share was $58.72, up 13% from a year earlier.
Management reiterated its longer-term total capital return framework of 40% to 60%, saying recent higher repurchase activity is not expected to be sustained if the company continues to target mid- to high-single-digit loan growth while maintaining CET1 in an 11% to 12% range.
Corbett also highlighted artificial intelligence as a strategic priority. The company is using the technology in credit operations, fraud management and call-center support, as well as through an internally developed small language model. SouthState is also testing commodity-hedging and foreign-exchange offerings, though Young said those initiatives are expected to launch in 2027 rather than materially affect 2026 results.
About SouthState Bank (NYSE:SSB)SouthState Bank NYSE: SSB is a bank holding company headquartered in Winter Haven, Florida, that provides a range of commercial and retail banking services. Through its subsidiary, SouthState Bank, the company serves businesses, institutions and individuals with deposit, lending and treasury management solutions. Its core business lines include commercial and industrial loans, commercial real estate lending, consumer mortgages and home equity loans.
In addition to traditional lending and deposit products, SouthState Bank offers specialized services such as treasury and cash management, merchant services, payment solutions and online banking.
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SouthState Bank Corporation (SSB) Q2 2026 Earnings Call July 24, 2026 9:00 AM EDT
Company Participants
William Matthews - Senior Executive VP & CFO
John Corbett - CEO & Chairman
Stephen Young - Senior Executive VP & Chief Strategy Officer
Conference Call Participants
Stephen Scouten - Piper Sandler & Co., Research Division
John McDonald - Truist Securities, Inc., Research Division
Hannah Wynn - Keefe, Bruyette, & Woods, Inc., Research Division
Michael Rose - Raymond James & Associates, Inc., Research Division
Sun Young Lee - TD Cowen, Research Division
Gary Tenner - D.A. Davidson & Co., Research Division
Anthony Elian - JPMorgan Chase & Co, Research Division
Benjamin Gerlinger - Citigroup Inc., Research Division
David Chiaverini - Jefferies LLC, Research Division
David Bishop - Hovde Group, LLC, Research Division
Samuel Varga - UBS Investment Bank, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the SouthState Bank Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions]
I will now hand the conference call over to Will Matthews, Chief Financial Officer. Mr. Matthews, please go ahead.
William Matthews
Senior Executive VP & CFO
Good morning. This is Will Matthews, and welcome to SouthState's Second Quarter 2026 Earnings Call.
I'm here with John Corbett, Steve Young and Jeremy Lucas. We'll follow our typical pattern of brief prepared remarks and then move into Q&A. And I'll refer you to the Investor Relations tab of our website for the earnings materials.
Before we begin our remarks, I want to remind you that comments we make may include forward-looking statements within the meaning of the federal securities laws and regulations. Any such forward-looking statements we may make are subject to the safe harbor rules. Please review the forward-looking disclaimer and safe harbor language in the press release and presentation for more information about our forward-looking statements and risks and uncertainties, which may affect us.
PECO Pullback Presents a Retail REIT Worth Shopping ForPhillips Edison & Company, Inc. NASDAQ: PECO reported higher second-quarter funds from operations and same-center net operating income, citing sustained demand for space at its grocery-anchored shopping centers, record in-line occupancy and strong leasing spreads. The company also raised its 2026 outlook for earnings, same-center NOI growth and acquisitions.
Chairman and CEO Jeff Edison said the company generated 8.1% year-over-year growth in NAREIT FFO per share, 7.8% growth in Core FFO per share and 3.8% same-center NOI growth during the second quarter. He attributed the performance to occupancy gains, leasing activity, rent spreads and operating execution across the portfolio.
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“Our centers generated 2% year-over-year traffic growth in June and 2% traffic growth year-to-date,” Edison said, adding that consumers continued to make frequent trips to necessity-based retail destinations despite seeking value.
Occupancy and Leasing Reach New Highs President Bob Myers said second-quarter leasing activity reached a record number of leases, while retailer demand showed “no current signs of slowing.” Necessity-based categories such as quick-service and fast-casual restaurants, health and wellness, beauty, fitness, services and medical retail continued to drive activity. The company said 74% of its rent comes from necessity-based goods and services.
Portfolio leased occupancy was 97.3%. Leased anchor occupancy was 98.4%. Leased in-line occupancy reached a record 95.5%. Economic in-line occupancy reached a record 94.8%. Comparable renewal rent spreads were 21.2%. Comparable new rent spreads were 33.7%. Annual rent bumps on in-line renewal leases averaged a record 3.1%. Myers said the company retained roughly 90% of its tenants and spent less than $1 per square foot to retain them. He said Phillips Edison expects it can increase in-line occupancy by another 100 basis points over time and lift anchor occupancy by 50 to 60 basis points by year-end.
The company reported lower-than-expected bad debt of about 70 basis points of revenue in the quarter and reduced its full-year bad-debt outlook. Management now expects bad debt for 2026 to be in line with or slightly better than 2025.
FFO, NOI and Balance Sheet CFO John Caulfield said second-quarter NAREIT FFO rose to $93.7 million, or $0.67 per diluted share, while Core FFO increased to $95.5 million, or $0.69 per diluted share. Same-center NOI rose 3.8%, primarily because of higher average rents and economic occupancy.
Phillips Edison raised its full-year 2026 guidance for NAREIT FFO per share, Core FFO per share and same-center NOI growth. At the midpoint, the updated outlook implies 6.3% growth in NAREIT FFO per share from 2025, 6.2% growth in Core FFO per share and 3.7% same-center NOI growth.
Caulfield said the increased FFO outlook reflects strong first-half operations and healthy tenant credit trends. However, he noted that asset sales occurring ahead of reinvestment in acquisitions create a short-term cash-flow gap, while positioning the company for growth in 2027.
The company ended the quarter with $857 million of liquidity. Net debt to trailing 12-month annualized adjusted EBITDAre was 5.1 times at quarter-end and 5.0 times on a last-quarter annualized basis. Its debt had a 4.4% weighted average interest rate and a 5.6-year weighted average maturity, including extension options. Fixed-rate debt represented 95.9% of total debt, including Phillips Edison’s share of joint-venture debt.
Moody’s revised the company’s outlook to positive, which Caulfield said reflected operating performance, balance-sheet management and liquidity.
Acquisition Target Increased Management raised 2026 gross acquisition guidance to $500 million to $600 million, an increase of $100 million. Caulfield confirmed in response to an analyst question that the net acquisition outlook also increased by $100 million.
The company completed $278 million of acquisitions at its share year to date through the week of the call, including eight grocery-anchored shopping centers, three everyday retail centers, an outparcel and land for future development. It had more than $225 million of awarded or contracted assets expected to close in the second half.
Management said acquisitions have been funded through dispositions, equity issuance and the company’s revolving credit facility. Phillips Edison raised $92 million of equity during June and July, though Caulfield said the full-year guidance does not assume additional equity issuance.
The company continues to target unlevered internal rates of return of 9% for grocery-anchored centers and 10% for everyday retail centers. Myers said the acquisition pipeline consists of about 60% grocery-anchored properties and 40% everyday retail assets. He said the company has identified more than 50,000 potential everyday retail opportunities near leading grocers and has acquired 12 such assets to date, where it has increased occupancy by 450 basis points.
Phillips Edison also maintained 2026 disposition guidance of $100 million to $200 million. Edison said the company had sold nearly $100 million of properties at a 6.3% capitalization rate and with an IRR below 7.5%, intending to redeploy that capital into higher-return opportunities.
Development Pipeline and Grocery Outlook The company has 21 active development and redevelopment projects with estimated investment of about $82 million and estimated average yields of 9% to 12%. Eleven projects stabilized year to date, delivering more than 212,000 square feet and approximately $3.4 million of annual incremental NOI, according to Myers.
Management also discussed grocer industry developments, including Kroger’s announced acquisition of Giant Eagle. Edison called the transaction positive for Phillips Edison, which has 10 Giant Eagle-anchored centers. He said Kroger’s investment in brick-and-mortar stores signaled confidence in physical grocery locations as a channel for sales and fulfillment.
While Edison acknowledged that grocers are responding to consumer caution by investing in price and observing shifts toward private-label products, he said Phillips Edison has not seen a deterioration in portfolio traffic. The company plans to continue monitoring consumer behavior and retailer health while pursuing growth through leasing, development, acquisitions, joint ventures and portfolio recycling.
About Phillips Edison & Company, Inc. (NASDAQ:PECO)Phillips Edison & Company, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of grocery-anchored, necessity-based shopping centers. The company's investment strategy is centered on properties that benefit from everyday consumer demand, seeking to deliver stable cash flows through long-term, triple-net leases with national and regional tenants in the grocery, drugstore and essential retail sectors.
In addition to its core retail portfolio, Phillips Edison & Company provides integrated services covering property management, asset management, leasing, development and acquisition sourcing.
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Consumer-Driven Stocks Boost Buybacks, Including Visa's $20B PlanByline Bancorp NYSE: BY reported record second-quarter net income of $40.2 million, or $0.90 per diluted share, as revenue increased and expenses declined from the prior quarter. Adjusted earnings per share were $0.91, up 10% sequentially and 21% from a year earlier, President Alberto Paracchini said during the company’s earnings call.
The Chicago-based commercial bank posted a 1.63% return on average assets and a return on average common equity of just under 14.5%. Its pre-tax, pre-provision return on assets was 2.49%, marking the company’s 15th consecutive quarter above 2%, according to management.
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Could This Entertainment Stock be the Belle of the Gaming Ball?“We delivered net income of $40.2 million or $0.90 per diluted share,” Paracchini said. “Record net income and excellent profitability really stood out this quarter.”
Revenue Growth and Efficiency Improvement Revenue totaled $118 million, up 4.7% from the prior quarter, while non-interest expenses fell. The adjusted efficiency ratio improved to 46.5% from 49.8% in the first quarter, which Paracchini described as the company’s best result since becoming a public company in 2017.
Boyd Gaming stock: All signs point to a significant break higherNet interest income was $101 million, up modestly from the preceding quarter. Net interest margin declined 5 basis points to 4.28%, primarily reflecting higher funding costs associated with a maturing balance-sheet hedge and changes in earning-asset mix, CFO Tom Bell said.
Management emphasized that it prioritizes growth in net interest income dollars rather than managing to a particular margin target. Paracchini said the bank may accept lower spreads on high-quality, relationship-oriented business if it is accretive to earnings and supports long-term franchise value.
For the third quarter, Byline projected net interest income of $100 million to $102 million, non-interest income of $14 million to $15 million, and gain-on-sale revenue averaging about $5.5 million per quarter. The company maintained its full-year non-interest expense outlook of $59 million to $60 million per quarter.
Bell said second-half expenses are expected to rise due largely to employee-related costs, including health care benefits and commissions tied to production. Management also said potential opportunities to hire banking talent are included in its outlook.
Loans, Deposits and Rate Environment Total loans ended the quarter at $7.6 billion, increasing at a 4.2% annualized rate. New originations totaled $234 million, while payoffs were elevated at $339 million. Loan commitments rose slightly, and line utilization increased to 60% from 59% in the prior quarter.
Management expects full-year loan growth in the mid-single digits if payoff activity normalizes in the second half. Paracchini said the recent elevated payoff activity partly reflects the bank’s effort to recycle acquired loan portfolios into new customer relationships.
Total deposits reached $7.9 billion, rising at a 3.5% annualized rate. Growth in interest-bearing checking balances was partly offset by lower money-market balances. The loan-to-deposit ratio ended the quarter at 96%.
Byline said competition for both loans and deposits remains elevated. Paracchini said price competition has intensified in commercial real estate, particularly as larger institutions return to certain segments of that market. He cited multifamily and industrial properties as areas where more capital is competing for a reduced level of transaction activity.
Bell said the company remains focused on relationship deposits rather than more rate-sensitive funding. He added that commercial customers moving balances from money-market accounts to interest-bearing checking could indicate they anticipate uses for that capital.
Credit Trends Remain Favorable Credit costs were $7.2 million during the quarter, including $4.4 million of net charge-offs and a $2.8 million reserve build. Net charge-offs equaled 24 basis points of loans, down from 32 basis points in the first quarter.
Criticized loans declined to 3.9% of total loans from 4.5% both sequentially and from a year earlier. Nonperforming loans totaled $69.1 million, or 92 basis points of total loans, up marginally from the prior quarter and flat year over year. The allowance for credit losses rose to $112 million, or 1.48% of total loans.
Chief Credit Officer Mark Fucinato said the decline in criticized and classified loans reflected improved performance at several larger operating companies, as well as the resolution of a workout situation in which an operating company sold a mortgaged asset and repaid its exposure in full. The bank also recorded a recovery on a prior charge-off.
Paracchini said management’s near-term expectation for net charge-offs remains in the range of 30 to 40 basis points, although he expects that level may migrate lower over time as the SBA portfolio becomes a smaller part of Byline’s overall balance sheet.
Capital Returns and $10 Billion Threshold Byline ended the quarter with total assets of $9.9 billion. Tangible common equity rose to 11.4%, while the common equity tier 1 ratio reached 12.9%. Tangible book value per share increased 14% from a year earlier to $24.48.
During the quarter, the company repurchased about 275,000 shares for $9.1 million. Including dividends and buybacks, its total shareholder payout ratio was 36%.
The board also approved a 16.7% increase in the quarterly dividend to $0.14 per share. Paracchini said the increase reflects the company’s capital position and earnings profile.
Management said it continues preparing to cross the $10 billion asset threshold. Paracchini said the company is not currently constraining normal balance-sheet activity to stay below that level, but it could manage the balance sheet near year-end if doing so would delay the effects of the Durbin amendment until mid-2028.
On acquisitions, Paracchini described the environment for smaller-bank transactions as constructive. He said Byline would generally seek deals with tangible book value earn-backs within three years, while continuing to weigh acquisitions against organic growth, investments in the business and share repurchases.
About Byline Bancorp (NYSE:BY)Byline Bancorp, Inc is the bank holding company for Byline Bank, a full-service commercial bank headquartered in Chicago, Illinois. Established under its current name in 2016, the company operates as a community-focused financial institution offering a broad array of banking products and services to corporate, professional and consumer clients.
On the commercial banking side, Byline Bancorp serves small and midsize businesses, real estate developers, professional services firms and nonprofit organizations.
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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NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Finward Bancorp (NasdaqCM: FNWD) to First Financial Bancorp. (NasdaqGS: FFBC). Under the terms of the proposed transaction, shareholders of Finward will receive 1.35 shares of First Financial for each share of Finward that they own. KSF is seeking to determine whether this consideration and the.
Earnings DERBY, VT / ACCESS Newswire / July 24, 2026 / Community Bancorp. (NASDAQ:CMTV), the parent company of Community National Bank (the "Bank"), reported consolidated earnings for the second quarter ended June 30, 2026, of $4.7 million or $0.84 per share, an increase of $628,008 or 15.47% compared to $4.1 million or $0.72 per share reported for the second quarter of 2025. Earnings for the six months ended June 30, 2026, were $9.1 million, or $1.62 per share, also a significant increase of $1.5 million or 19.40% compared to $7.6 million or $1.34 per share in the same period in 2025.
Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
(Unaudited)
Six months Ended
Quarter Ended
Six months Ended
Quarter Ended
June 30, 2026
June 30, 2026
June 30, 2025
June 30, 2025
Return on average assets
1.47
%
1.53
%
1.29
%
1.38
%
Pre-tax, pre-provision net revenue return on average assets
1.96
%
2.11
%
1.67
%
1.81
%
Return on average shareholders' equity
15.63
%
15.83
%
15.05
%
15.62
%
Net Interest Margin
3.88
%
3.95
%
3.56
%
3.64
%
Efficiency Ratio
54.2
%
52.8
%
57.3
%
55.8
%
Noninterest expense to average assets
2.31
%
2.37
%
2.24
%
2.29
%
Dividend payout
30.86
%
29.76
%
35.82
%
33.33
%
Fully diluted tangible book value per common share (1)
$
19.51
$
19.51
$
16.63
$
16.63
Total capital to risk-weighted assets (2)
16.05
%
16.05
%
14.85
%
14.85
%
Total common equity tier 1 capital to risk-weighted assets (2)
14.79
%
14.79
%
13.60
%
13.60
%
Tier I Capital to Average Assets (2)
10.63
%
10.63
%
10.06
%
10.06
%
Tangible common equity to tangible assets (1)
9.41
%
9.41
%
8.21
%
8.21
%
Earnings per common share
$
1.62
$
0.84
$
1.34
$
0.72
Weighted average number of common shares
used in computing earnings per share
5,590,465
5,594,749
5,608,997
5,612,675
(1)
Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.
(2)
Represents Bank-only ratios. Current period capital ratios are preliminary subject to finalization of the Bank's June 30, 2026 FDIC Call Report.
Total assets for the Company at June 30, 2026, were $1.17 billion, a decrease of $114.8 million from year end 2025, but $6.2 million or 0.53% higher compared to $1.17 billion as of June 30, 2025. The year-to-date change primarily reflects annual maturities of municipal non arbitrage relationships and lower cash balances used to pay off two maturing advances totaling $25.0 million, as well as a cyclical decrease in deposit balances. Contributing to the Company's year-over-year growth in assets was growth in the Company's gross loan portfolio of $28.8 million, or 3.06%, compared to the 2025 period. Deposit balances increased $48.7 million, or 5.22%, compared to the same period in 2025 but decreased $89.0 million or 8.31% since year end 2025 reflecting cyclical changes. The year-over-year loan growth was primarily funded by a combination of cash, maturities of securities, as well as an increase in core deposits.
The Company's securities portfolio totaled $128 million as of June 30, 2026, an 11.45% decrease compared to $144.6 million as of December 31, 2025. The portfolio is classified as available-for-sale and is required to be reported at fair market value with the unrealized loss, net of a deferred tax adjustment, as an adjustment to total equity. Such unrealized losses reflect the interest rate environment, as current rates remain below the coupon rates on the securities, resulting in a fair market value lower than current book values. As of June 30, 2026, the adjustment to equity was $9.4 million, representing an improvement of $3.1 million from the adjustment to equity of $12.5 million on June 30, 2026 and $9.6 million as of December 31, 2025.
Total net interest income for the second quarter ended June 30, 2026, increased $1.4 million, or 13.68%, to $11.2 million, compared to $9.9 million for the same quarter in 2025. The quarter-over-quarter improvement reflects an increase of $1.1 million, or 7.72%, in interest and fees on loans due to strong loan growth and higher yields, partially offset by higher interest on deposits expense of $37,533, or 0.94%. Net interest income for the six months ended June 30, 2026, increased $2.9 million or 14.81%, to $22.2 million, compared to $19.3 million for the same period in 2025, reflecting the same trends.
The provision for credit losses for the second quarter ended June 30, 2026, was $720,967 compared to $407,046 for the same period in 2025. The year-to-date provision for credit losses was $1.1 million, compared to $732,100 for the same period in 2025. The $380,373 year-over-year increase was driven primarily by strong loan growth. The provision for credit losses for June 30, 2026, was determined under Accounting Standard No. 2016-13, Measurement of Credit Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses, or CECL.
Total non-interest income for the second quarter ended June 30, 2026, of $2.3 million increased $254,036, or 12.34%, compared to $2.1million for the same period in 2025. Total non-interest income for the six months ended June 30, 2026, grew to $4.1 million, compared to $3.6 million for the six months ended June 30, 2025, an increase of $420,767, or 11.57% year-over-year. Total non-interest expenses increased $497,838, or 7.47%, for the second quarter comparison period, and $1.1 million, or 7.98%, for the six months period year-over-year.
Equity capital increased to $120.9 million, with a book value per share of $21.58, as of June 30, 2026, compared to equity capital of $113.7 million and a book value per share of $20.36 as of December 31, 2025, and $106.3 million and book value per share of $18.69 as of June 30, 2025. This change includes a decrease of $237,432 in unrealized losses in the investment portfolio year-to-date and a decrease of $3.1 million year-over-year, due to changing bond rates, which increased the fair market value of the investment portfolio, as well as an increase of $6.3 million year-to-date and an increase of $12.8 million year-over-year in retained earnings. The unrealized loss position is considered temporary and does not impact the Company's regulatory capital ratios. In the fourth quarter of 2025, the Company completed the optional redemption of all fifteen of the Company's outstanding shares of its Series A Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. The preferred stock value of $1,500,000 was included in the Company's equity capital as of June 30, 2025.
President and CEO Christopher Caldwell commented on the Company's results: "Through the first half of 2026, the company continued its strong performance. Community banking thrives through relationship-based banking and this long-term approach to clients and our communities continues to serve us well. Our inclusion in both the ABA Nasdaq Community Bank Index and the Russell 2000 Index has increased the Company's visibility among investors and may support broader market awareness of our stock over time. Tangible book value per share increased by 17% for the year-to-date period compared to the same period of 2025. Year-to-date earnings per share increased 20% compared to the same period last year, and 16% for the second quarter compared to the same quarter of 2025. These results demonstrate the Company's commitment to serving our customers as Vermont's Community Bank. We are grateful for the trust that our communities, clients, and shareholders have placed in us."
As previously announced, the Company declared a quarterly cash dividend of $0.25 per share payable August 1, 2026, to shareholders of record as of July 15, 2026.
About Community Bancorp.
Community Bancorp. is the parent holding company for Community National Bank, headquartered in Derby, Vermont. Community National Bank is an independent bank that has been serving its communities since 1851, with retail banking offices located in Derby, Derby Line, Island Pond, Barton, Newport, Troy, St. Johnsbury, Montpelier, Barre, Lyndonville, Morrisville and Enosburg Falls as well as loan offices located in Burlington, Vermont and Lebanon, New Hampshire
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements about the Company's financial condition, capital status, dividend payment practices, business outlook and affairs. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Although these statements are based on management's current expectations and estimates, actual conditions, results, and events may differ materially from those contemplated by such forward-looking statements, as they could be influenced by numerous factors which are unpredictable and outside the Company's control. Factors that may cause actual results to differ materially from such statements include, among others, the following: (1) general national or regional economic conditions, national fiscal or monetary policies, or national or international tariff or trade conditions result in a deterioration of the credit quality of our loan portfolio or diminished demand for the Company's products and services; (2) changes in laws or government rules, or the way in which courts interpret those laws or rules, adversely affect the financial industry generally or the Company's business in particular, or may impose additional costs and regulatory requirements; (3) interest rates change in such a way as to reduce the Company's interest margins and its funding sources; and (4) competitive pressures increase among financial services providers in the Company's northern New England market area or in the financial services industry generally, including pressures from nonbank financial service providers, from increasing consolidation and integration of financial service providers and from changes in technology and delivery systems, and other factors that are listed from time to time in our financial filings with the SEC, including our Forms 10Q and 10K. The Company cautions you not to rely unduly on forward-looking statements because the assumptions, beliefs, expectations, and projections about future events may, and often do, differ materially from actual results or events. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law.
Use of Non-GAAP Financial Measures
In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as pre-tax, pre-provision income; fully diluted tangible book value per common share and tangible common equity to tangible assets. Management believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found at the end of this document.
Community Bancorp. And Subsidiary
Consolidated Balance Sheets (unaudited)
June 30,
December 31,
2026
2025
Assets
Cash and due from banks
$
19,772,554
$
11,802,391
Federal funds sold and overnight deposits
5,840,996
116,259,370
Total cash and cash equivalents
25,613,550
128,061,761
Securities available-for-sale (amortized cost $139,848,277
and $156,694,754 at 06/30/26 and 12/31/25, respectively
127,982,828
144,528,758
Restricted equity securities, at cost
1,918,950
2,933,050
Loans held-for-sale
813,332
138,000
Loans
970,535,252
965,285,662
Allowance for credit losses
(11,881,321
)
(10,864,983
)
Deferred net loan costs
940,423
786,604
Net loans
959,594,354
955,207,283
Bank premises and equipment, net
12,220,494
12,090,886
Accrued interest receivable
4,505,039
4,607,975
Bank owned life insurance
5,435,603
5,398,085
Goodwill
11,574,269
11,574,269
Other real estate owned
-
319,019
Other assets
23,090,295
22,699,860
Total assets
$
1,172,748,714
$
1,287,558,946
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Demand, non-interest bearing
$
204,738,374
$
218,842,543
Interest-bearing transaction accounts
278,551,211
299,636,739
Money market funds
125,665,889
187,132,921
Savings
146,071,626
142,543,291
Time deposits, $250,000 and over
48,195,437
46,913,997
Other time deposits
178431659
175,598,510
Total deposits
981,654,196
1,070,668,001
Repurchase agreements
35,019,257
41,498,171
Borrowed funds
10,975,022
35,975,022
Junior subordinated debentures
12,887,000
12,887,000
Accrued interest and other liabilities
11,319,225
12,843,774
Total liabilities
1,051,854,700
1,173,871,968
Shareholders' Equity
Common stock - $2.50 par value; 15,000,000 shares authorized,
5,902,267 shares issued at 06/30/26, 5,882,266 shares issued at 12/31/25
14,755,668
14,705,665
Additional paid-in capital
40,757,013
40,076,561
Retained earnings
79,287,690
73,021,908
Accumulated other comprehensive loss
(9,373,705
)
(9,611,137
)
Less: treasury stock, at cost; 300,409 shares at 06/30/26 and 299,399
shares at 12/31/25
(4,532,652
)
(4,506,019
)
Total shareholders' equity
120,894,014
113,686,978
Total liabilities and shareholders' equity
$
1,172,748,714
$
1,287,558,946
Book value per common share outstanding
$
21.58
$
20.36
Community Bancorp. and Subsidiary
Consolidated Statements of Income (unaudited)
Quarter Ended
Quarter Ended
June 30, 2026
June 30, 2025
Interest income
Interest and fees on loans
$
14,748,598
$
13,691,705
Interest on taxable debt securities
741,821
948,048
Interest on tax-exempt debt securities
80,411
80,411
Dividends
47,363
58,595
Interest on federal funds sold and overnight deposits
424,413
71,857
Total interest income
16,042,606
14,850,616
Interest expense
Interest on deposits
4,009,541
3,972,008
Interest on borrowed funds
301,838
444,596
Interest on repurchase agreements
262,376
298,057
Interest on junior subordinated debentures
221,045
241,413
Total interest expense
4,794,800
4,956,074
Net interest income
11,247,806
9,894,542
Credit loss expense
720,967
407,046
Net interest income after credit loss expense
10,526,839
9,487,496
Non-interest income
Service fees
988,219
969,775
Income from sold loans
89,692
96,705
Other income from loans
537,043
331,759
Income from investment in CFS Partners
579,795
548,307
Other income
117,998
112,165
Total non-interest income
2,312,747
2,058,711
Non-interest expense
Salaries and wages
2,632,767
2,392,661
Employee benefits
1,102,841
1,056,273
Occupancy expenses, net
779,462
794,451
Other expenses
2,650,168
2,424,015
Total non-interest expense
7,165,238
6,667,400
Income before income taxes
5,674,348
4,878,807
Income tax expense
986,564
819,031
Net income
$
4,687,784
$
4,059,776
Earnings per common share
$
0.84
$
0.72
Weighted average number of common shares
used in computing earnings per share
5,594,749
5,612,675
Dividends declared per common share
$
0.25
$
0.24
Six Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
Interest income
Interest and fees on loans
$
29,181,219
$
26,906,737
Interest on taxable debt securities
1,546,571
1,807,276
Interest on tax-exempt debt securities
160,823
160,823
Dividends
99,321
106,485
Interest on federal funds sold and overnight deposits
1,081,511
393,806
Total interest income
32,069,445
29,375,127
Interest expense
Interest on deposits
8,186,172
8,157,915
Interest on borrowed funds
687,788
815,574
Interest on repurchase agreements
556,106
584,016
Interest on junior subordinated debentures
443,692
484,758
Total interest expense
9,873,758
10,042,263
Net interest income
22,195,687
19,332,864
Credit loss expense
1,112,473
732,100
Net interest income after credit loss expense
21,083,214
18,600,764
Non-interest income
Service fees
1,924,696
1,856,557
Income from sold loans
159,237
166,082
Other income from loans
887,238
601,927
Income from investment in CFS Partners
822,234
797,658
Other income
264,682
215,096
Total non-interest income
4,058,087
3,637,320
Non-interest expense
Salaries and wages
5,211,603
4,712,727
Employee benefits
2,214,118
2,074,245
Occupancy expenses, net
1,554,443
1,576,307
Other expenses
5,242,433
4,807,731
Total non-interest expense
14,222,597
13,171,010
Income before income taxes
10,918,704
9,067,074
Income tax expense
1,861,817
1,481,843
Net income
$
9,056,887
$
7,585,231
Earnings per common share
$
1.62
$
1.34
Weighted average number of common shares
used in computing earnings per share
5,590,465
5,608,997
Dividends declared per common share
$
0.50
$
0.48
Community Bancorp. and Subsidiary
Earnings Per Share ("EPS") (unaudited)
(Dollars in thousands, except share data)
For the Quarter Ended June 30,
For the Six Months Ended June 30,
2026
2025
2026
2025
(In thousands, except per share data)
Net income
$
4,688
$
4,060
$
9,057
$
7,585
Less: dividends to preferred shareholders
-
$
28
-
$
56
Net income available to common shareholders
$
4,688
$
4,032
$
9,057
$
7,529
Weighted average number of common shares used in computing earnings per share
5,594,749
5,612,675
5,590,465
5,608,997
Earnings per common share
$
0.84
$
0.72
$
1.62
$
1.34
Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
Community Bancorp. and Subsidiary
(Dollars in thousands, except share data)
Quarter Ended
June 30, 2026
Computation of Pre-tax, pre-provision net revenue
Net interest income
$
11,247,806
Non-interest income
$
2,312,747
Less: Non-interest expense
$
7,165,238
Pre-tax, pre-provision net revenue
$
6,395,315
Computation of Pre-tax, pre-provision net revenue return on average assets
Pre-tax, pre-provision net revenue
$
6,395,315
Average Assets
$
1,228,309,434
Pre-tax, pre-provision net revenue return on average assets
2.11
%
As of
June 30, 2026
December 31, 2025
June 30, 2025
Computation of Fully Diluted Tangible Book Value per Common Share
Total shareholders' equity
$
120,894
$
113,687
$
106,343
Less:
Preferred Stock
-
-
$
1,500
Common shareholders' equity
$
120,894
$
113,687
$
104,843
Less:
Goodwill
$
11,574
$
11,574
$
11,574
Other Intangibles
-
-
-
Tangible common shareholders' equity
$
109,320
$
102,113
$
93,269
Common shares issued and outstanding
5,601,858
5,582,927
5,608,914
Fully Diluted Tangible Book Value per Common Share
$
19.51
$
18.29
$
16.63
As of
June 30, 2026
December 31, 2025
June 30, 2025
Computation of Tangible Common Equity to Tangible Assets
Common Equity
$
120,894
$
113,687
$
106,343
Less:
Goodwill
$
11,574
$
11,574
$
11,574
Other Intangibles
-
-
-
Tangible Common Equity
$
109,320
$
102,113
$
94,769
Total Assets
$
1,172,749
$
1,287,559
$
1,166,586
Less:
Goodwill
$
11,574
$
11,574
$
11,574
Other Intangibles
-
-
-
Tangible Assets
$
1,161,175
$
1,275,985
$
1,155,012
Tangible Common Equity to Tangible Assets
9.41
%
8.00
%
8.21
%
For more information, contact:
Investor Relations
[email protected]
WHITE PLAINS, N.Y., July 24, 2026 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), reported net income of $9.8 million, or $0.75 per basic share and $0.72 per diluted share, for the three months ended June 30, 2026 compared to net income of $11.2 million, or $0.85 per basic share and $0.82 per diluted share, for the three months ended June 30, 2025.
Key Takeaways Boston Beer's Q2 EPS fell 33% y/y to $3.65, while revenues declined 3.3% to $568 million.SAM's depletions dropped 6% as weakness across key brands offset growth in Sun Cruiser and Angry Orchard.SAM cut its 2026 capital spending forecast to $60-$80 million from $70-$90 million. The Boston Beer Company, Inc. (SAM - Free Report) reported lower-than-expected revenues and earnings in second-quarter 2026. The top and bottom lines also fell year over year. It posted second-quarter adjusted earnings per share (EPS) of $3.65, missing the Zacks Consensus Estimate of $4.77. The reported number decreased 33% from the year-ago figure.
Net revenues declined 3.3% to $568 million and missed the consensus estimate of $572 million by 0.7%. Higher advertising, promotional and selling expenses, along with lower volumes, weighed on results.
SAM Faces Weaker Volumes and Brand PressureDepletions dipped 6% in the quarter, while shipment volume declined 4.5% to about 2 million barrels. Lower shipments of Twisted Tea, Truly, Samuel Adams, Hard Mountain Dew and Dogfish Head more than offset growth in Sun Cruiser and Angry Orchard.
Year-to-date depletions through the 26-week period ended June 27, 2026, decreased roughly 5% from the comparable period in 2025.
Boston Beer said distributor inventories were appropriate at the quarter-end and averaged roughly four and a half weeks on hand, unchanged from the comparable 2025 period. Favorable product mix and pricing partly cushioned the impact of lower volumes.
Analysis of Boston Beer’s Q2 Margins & ExpensesSAM reported a gross margin of 50.4%, up 60 basis points (bps) from the second quarter of 2025, benefiting from price increases, a favorable product mix, procurement savings and enhanced brewery efficiencies. The gain was partly offset by inflationary, commodity and tariff costs. Gross margin also included $1.6 million of shortfall fees and non-cash expenses of third-party production pre-payments in total, which hurt the metric by nearly 28 bps on an absolute basis.
Advertising, promotional and selling expenses increased 16.4%, or $26.2 million, from the prior-year quarter. The increase included $17.5 million of higher brand, local marketing and point-of-sale investments.
Freight costs rose $8.6 million because of higher rates, partly offset by lower volumes. General and administrative expenses increased $3.1 million, mainly because of higher legal fees and salary and benefit costs.
SAM Maintains Liquidity and Returns Cash to HoldersBoston Beer ended the quarter with $265.5 million in cash and no debt. Net cash provided by operating activities totaled $117.6 million for the first 26 weeks of 2026, while capital expenditures were $22.9 million.
The company repurchased $54.1 million of Class A shares from Dec. 29, 2025, through July 17, 2026. About $174 million remained under its board-authorized $1.6 billion repurchase limit as of July 17.
SAM Updates 2026 GuidanceBoston Beer updated its full-year 2026 guidance while cautioning that results remain sensitive to volume trends, supply-chain execution, inflation, commodity costs and tariff policies. The company continues to expect depletions and shipments to decline in the low-single-digit to mid-single-digit range, with price increases of 1-2%. It raised the lower end of its gross margin outlook to 48.5% from 48%, while retaining the upper end at 50%. Tariff costs are still projected at $20-$30 million.
Management lowered its anticipated year-over-year increase in advertising, promotional and selling expenses to $0-$20 million from $20-$40 million expected earlier. It also revised the GAAP loss outlook to $6.23-$4.23 per share from a loss of $7.02-$5.02, reflecting a reduced litigation-related impact of $14.73 per share versus $15.52 previously. The adjusted tax rate forecast remains 29-30%, while adjusted earnings guidance was maintained at $8.50-$10.50 per share. Capital spending is now expected to be $60-$80 million, down from the prior projection of $70-$90 million.
The company continues to monitor commodity inflation, particularly energy costs, which affect freight and aluminum expenses. Supply-chain improvements implemented in 2025 have helped stabilize distributor inventory levels, though shipment timing is expected to influence second-half comparisons. Boston Beer anticipates shipments to decline in the low- to mid-single-digit range in the third quarter, followed by modest growth in the fourth quarter.
Gross margin improvement is expected to be most pronounced in the fourth quarter, aided by lower shortfall fees compared with the prior year. However, shortfall fees and non-cash expenses related to third-party production prepayments are still projected to reduce full-year gross margin by 40-60 basis points. Advertising investment is expected to decline year over year in the fourth quarter due to lower planned spending and a tough comparison with elevated production costs in the prior-year period.
This Zacks Rank #3 (Hold) company’s shares have declined 25.5% in the past three months, underperforming the industry’s 3.8% growth.
SAM Stock's Price Performance
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) operates as a franchise bottler of Coca-Cola trademark beverages worldwide. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX's current fiscal-year sales and earnings indicates growth of 17.3% and 131%, respectively. FMX delivered a trailing four-quarter negative earnings surprise of nearly 17%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, the company flaunts a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for COCO's current fiscal-year sales and earnings implies growth of 22.3% and 48.7%, respectively, from the year-ago actuals. COCO delivered a trailing four-quarter earnings surprise of 11.7%, on average.
Southern California Edison today announced that more than 12,000 participants have sought compensation directly through its [url="]Wildfire Recovery Compensati
Investors interested in Insurance - Multi line stocks are likely familiar with Radian (RDN) and Axa Sa (AXAHY). But which of these two stocks presents investors with the better value opportunity right now?
Sheryl Palmer, Taylor Morrison CEO, joins 'Squawk on the Street' to discuss the company's merger with Berkshire Hathaway, what to expect from housing demand and much more.
SEI Investments (SEIC - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this investment management firm is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for SEI Investments, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $1.59 per share for the current quarter, which represents a year-over-year change of +22.3%.
Over the last 30 days, four estimates have moved higher for SEI compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 6.01%.
Current-Year Estimate RevisionsThe company is expected to earn $6.20 per share for the full year, which represents a change of +10.1% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for SEI versus no negative revisions. This has pushed the consensus estimate 5.4% higher.
Favorable Zacks RankThanks to promising estimate revisions, SEI currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for SEI have attracted decent investments and pushed the stock 10% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Key Takeaways FICO's Q3 revenues are expected to rise 26.64%, with earnings projected to grow 40.26% year over year.Higher mortgage pricing, healthy originations and Score 10T adoption may support FICO's Scores growth.FICO Platform ARR rose 49% to $349 million on customer wins, broader use cases and migrations. Fair Isaac Corporation (FICO - Free Report) is set to report its third-quarter 2026 results on July 29.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $679.31 million, suggesting an increase of 26.64% from the reported figure in the year-ago quarter.
The consensus mark for third-quarter 2026 earnings is pegged at $12.02 per share, down by 0.25% over the past 30 days, while indicating 40.26% year-over-year growth.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.78%.
Let us see how things have shaped up prior to this announcement.
Factors Likely to Impact FICO’s Q3 PerformanceFICO's third-quarter 2026 performance is likely to have been driven by continued strength in its Scores business, supported by higher mortgage pricing and healthy origination activity. Mortgage origination revenues surged 127% year over year in the second quarter of 2026, reflecting the benefit of higher pricing and stronger volumes.
The rollout of FICO Score 10T is expected to have provided another growth tailwind in the to-be-reported quarter. During the second quarter of 2026, the company added 11 lenders to its Early Adopter Program, bringing the total to 55 lenders that represent more than $495 billion in annual serviceable mortgage originations. Three of the five largest mortgage resellers have signed up for the Direct Licensing Program, with the remaining two expected to join pending final regulatory approval. These developments are likely to have supported broader adoption of FICO Score 10T in the to-be-reported quarter.
Fair Isaac’s software business is also likely to have benefited from continued momentum in the FICO Platform. Total software ARR increased 10% year over year to $789 million in the second quarter of 2026, while Platform ARR jumped 49% to $349 million. Platform revenues grew 54%, supported by new customer wins, expanded use cases among existing customers and migrations to the platform. Management noted that software bookings are expected to be stronger in the second half of fiscal 2026 than in the first half, reflecting a healthy sales pipeline. This momentum is expected to have continued in the to-be-reported quarter as well.
FICO’s investments in explainable artificial intelligence (AI) and decisioning software are expected to remain a positive catalyst. The company highlighted that the FICO Platform is "agentic-by-design," with more than 150 customers using it across multiple use cases. Management noted that FICO has been issued 137 AI-related patents and continues to invest in explainable AI capabilities for highly regulated industries, strengthening its competitive positioning as enterprise AI adoption accelerates.
However, delays in regulatory approvals for the FICO Score 10T Direct Licensing Program and uncertainty regarding the timing of its commercial rollout could affect the pace of adoption in the to-be-reported quarter. Management continues to assume conservative mortgage volume trends, while macroeconomic conditions and housing market activity remain variables that could influence quarterly performance.
What Our Model Says About FICOPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
Fair Isaac currently has an Earnings ESP of -0.04% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases.
Amphenol (APH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol shares have gained 16.5% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.
ASE Technology (ASX - Free Report) has an Earnings ESP of +21.21% and a Zacks Rank #2 at present.
ASE Technology shares have surged 145.1% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.
Fortive (FTV - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.
Fortive shares have gained 9.8% in the year-to-date period. Fortive is set to report its second-quarter 2026 results on July 29.
Key Takeaways Liquidia is seeing rapid YUTREPIA adoption, rising referrals, more prescribers and market-share gains.Energy Transfer's 140,000-mile pipeline network supports stable fee-based revenue across key U.S. basins.PBF Energy may benefit as strong refinery utilization offsets high-oil-price input costs. Oil prices are climbing again as the Iran war intensifies. This is creating uncertainty, and the market will likely be volatile. With fears dominating the market, it is an ideal time for investors to increase their allocation to low-beta companies. Stocks that seem to be good bets now are Liquidia Corporation (LQDA - Free Report) , Energy Transfer LP (ET - Free Report) and PBF Energy Inc. (PBF - Free Report) .
What Does Beta of a Stock Measure?
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria Using Research Wizard:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1 (Strong Buy):Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are three of the 24 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical developments.
Energy Transfer
Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 140,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.
The partnership has offered a higher dividend yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 18.2%.
PBF Energy
PBF Energy is among the leading refiners in the United States. Strong refinery utilization in the United States to meet resilient demand is expected to continue to offset the negative impacts of elevated input costs, driven by high oil prices. This is possibly aiding PBF’s bottom line.
These 3 Cash-Flow Stocks Give Investors More Than Just Growth PotentialComfort Systems USA NYSE: FIX reported second-quarter 2026 revenue above $3 billion for the first time, as demand from technology and industrial customers helped drive higher bookings, record backlog and sharply improved profitability.
Chief Executive Officer Brian Lane said the company generated $3.3 billion in quarterly revenue and earned $12.53 per share, a 92% increase from the prior-year period. The company’s backlog reached a record $14.1 billion at quarter-end, supported by continued technology-sector demand and favorable project margins.
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Industrials Are Leading in 2026, But These ETFs Take Different Routes“We had a fantastic quarter with amazing execution by our teams,” Lane said. “Demand remains strong, especially in technology, as we continue to book work with good margins and favorable working conditions for our valuable people.”
Revenue, Profit and Cash Flow Rise Chief Financial Officer Bill George said second-quarter revenue increased by $1.1 billion from a year earlier, with same-store revenue up 44%. Electrical-segment revenue rose 81%, while mechanical-segment revenue increased 40%.
3 Infrastructure Stocks Fueling the Data Center Building BoomFor the first six months of 2026, same-store revenue grew 47%. The company expects full-year same-store revenue growth to finish in the mid- to high-30% range, George said.
Gross profit increased to $844 million from $510 million in the second quarter of 2025, while gross margin expanded to 25.9% from 23.5%. Mechanical gross margin rose to 25.6% from 22.9%, and electrical gross margin increased to 26.4% from 25.3%.
SG&A expense increased to $287 million from $210 million as the company invested in personnel and innovation, though SG&A as a percentage of revenue declined to 8.8% from 9.7%. Operating income rose 86% to $558 million, and operating margin increased to 17.1% from 13.8%.
Net income was $442 million, or $12.53 per share, compared with $231 million, or $6.53 per share, a year earlier. EBITDA increased 80% to $600 million, bringing trailing 12-month EBITDA to approximately $2 billion.
Free cash flow totaled $999 million in the quarter. George attributed the result partly to advanced customer cash, strong payment terms and broad-based project performance, rather than a single factor. He said the company expects cash flow over time to align with net income plus noncash expenses.
The company ended the quarter with a net cash position of more than $1.8 billion, despite acquisition spending and capital investments. It expects capital expenditures for the full year to equal approximately 5% of revenue, primarily supporting production facilities and modular capacity.
Backlog Expands as Technology Work Drives Demand President Trent McKenna said backlog increased by $1.6 billion sequentially, including a $1.4 billion same-store increase. Compared with a year earlier, total backlog increased $5.9 billion, or 73%, with $5.6 billion of the gain coming from same-store operations.
Same-store backlog entering the third quarter was 69% higher than a year earlier. McKenna said project pipelines remained at historically high levels, led by technology-sector construction and modular work.
Industrial customers accounted for 75% of first-half revenue. Technology, which is included within industrial, represented 58% of revenue, up from 40% in the prior year. Institutional markets, including education, healthcare and government, represented 17% of revenue. Commercial markets accounted for 8% of revenue. Construction represented 90% of revenue, while service represented 10%. New-building construction accounted for 75% of total revenue, including modular activity, while existing-building construction represented 15%. Modular revenue represented 17% of year-to-date revenue.
During the quarter, modular operations booked $510 million, enough to cover the business’s production activity and add roughly $500 million to backlog, according to George. The company said demand from customers remains consistent with its plans to expand modular manufacturing capacity.
Modular Capacity Plans Tied to Customer Commitments Comfort Systems USA has more than 3.5 million square feet of capacity dedicated to modular operations and expects to exceed 4 million square feet in production by year-end. It plans to reach approximately 5 million square feet of capacity by late summer 2027.
Management said the planned capacity expansion is principally intended to serve existing customers and existing orders. The company is pursuing pilot contracts with frontier labs and colocation providers, but said meaningful programmatic business from those newer customers would require additional manufacturing space.
George said the company will not add buildings solely on speculation and will expand only when customers provide meaningful multiyear commitments. He said recent capital investments have generated rapid returns, with projects producing what he described as full paybacks within one or two years.
Management said it does not see a slowdown in data-center demand despite public opposition and moratorium discussions in some markets. Lane said the company’s direct relationships with hyperscalers and key intermediaries provide visibility into customer plans, and that management sees “no letdown whatsoever” in their need to continue building capacity.
McKenna said much of the company’s current backlog consists of projects that were already planned and permitted. He added that modular capacity is more programmatic and can be directed toward customer locations as needed.
Acquisition and Capital Allocation The company also discussed its acquisition of Hunt Electric, a Utah-based electrical contractor that closed May 1. Lane said Hunt is expected to contribute approximately $250 million in annualized revenue.
McKenna said Hunt has begun pursuing opportunities jointly with Comfort Systems USA’s mechanical contractors in Utah and called it the premier electrical provider in that market.
Comfort Systems USA increased its quarterly dividend by $0.10 to $0.90 per share. George said capital allocation will continue to include investments in facilities, selective share repurchases and a patient approach to acquisitions.
Management also highlighted the longer-term service opportunity created by its growing data-center installed base. McKenna said service revenue increased 7% during the year and remains profitable, though the data-center service opportunity is expected to develop over time as newly constructed facilities move beyond warranty periods.
About Comfort Systems USA (NYSE:FIX)Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.
Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Comfort Systems USA Right Now?Before you consider Comfort Systems USA, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Comfort Systems USA wasn't on the list.
While Comfort Systems USA currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Associated Banc-Corp (ASB - Free Report) is headquartered in Green Bay, and is in the Finance sector. The stock has seen a price change of 17.47% since the start of the year. Currently paying a dividend of $0.24 per share, the company has a dividend yield of 3.17%. In comparison, the Banks - Midwest industry's yield is 2.51%, while the S&P 500's yield is 1.33%.
Looking at dividend growth, the company's current annualized dividend of $0.96 is up 3.2% from last year. Over the last 5 years, Associated Banc-Corp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.59%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Associated Banc-Corp's current payout ratio is 33%, meaning it paid out 33% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ASB for this fiscal year. The Zacks Consensus Estimate for 2026 is $2.91 per share, which represents a year-over-year growth rate of 5.05%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ASB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
New York, New York--(Newsfile Corp. - July 24, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Peabody Energy Corporation (NYSE: BTU) between October 14, 2024 to May 4, 2026, inclusive (the "Class Period"), of the important August 24, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Peabody Energy common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Peabody Energy class action, go to https://rosenlegal.com/cases/peabody-energy-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 24, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Peabody Energy's Centurion mine and the multitude of issues causing delays to the ramp-up and the return to full longwall production dates. On March 30, 2026, Peabody Energy issued a press release lowering guidance pertaining to Centurion mine's expected first quarter 2026 output ahead of Peabody Energy's full earnings release. In pertinent part, defendants announced that sales volume from the Centurion mine was expected to deliver approximately 250,000 tons in the first quarter due to mining commissioning challenges (compared to previous estimates of around 700,000 tons). When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Peabody Energy class action, go to https://rosenlegal.com/cases/peabody-energy-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306469
Source: The Rosen Law Firm PA
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AI, Satellites and Staples: Insiders Are Buying and Selling 3 Big NamesLamb Weston NYSE: LW reported higher fourth-quarter sales and continued volume growth in fiscal 2026, led by North America, while international operations faced pressure from weaker European demand, higher costs and disruption tied to the Middle East conflict.
Fourth-quarter net sales increased 6% from a year earlier, including a 7% increase in sales volume and a 2% favorable currency effect, partly offset by a 3% decline in price and mix. On a constant-currency basis, net sales rose 4%. The quarter marked Lamb Weston's sixth consecutive quarter of sales-volume growth.
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Frozen Out: Lamb Weston Beats Earnings, but the Stock Still Slides“We made meaningful progress as an organization in fiscal 2026,” President and CEO Mike Smith said, pointing to the stabilization of the company’s North American business, progress on cost savings and reduced capital spending.
North America drives quarterly performance North America net sales rose 9% in the fourth quarter, as volume increased 11%, supported by customer wins, share gains, retention and an extra week in the fiscal calendar. Price and mix declined 2%, with price investments and a shift toward lower-priced channels, including chains and private label, each contributing to the decline.
5 Under-the-Radar Consumer Staples Stocks With Pricing PowerNorth American segment EBITDA increased 17%, or $45 million, in the quarter. Smith said volume growth, modest price-and-mix investment and cost savings more than offset inflation. The segment ended the fiscal year with a 26% EBITDA margin, according to Smith.
U.S. restaurant traffic was flat during the quarter, based on Circana Crest data cited by Chief Financial Officer Jim Gray. Quick-service restaurant traffic was also flat, as 3% growth in quick-service chicken traffic was largely offset by a 4% decline in quick-service burger traffic.
Smith said the company extended several large customer contracts during the year, supported customer rollouts and introduced higher-margin limited-time offers. He also said Lamb Weston’s U.S. net promoter score rose from the prior year and was the highest among major competitors, according to the company’s proprietary research.
For the full fiscal year, North America net sales increased 3%, with a 9% volume increase partly offset by a 6% price-and-mix decline. The company said the 53rd week in fiscal 2026 added $86 million to annual North American sales.
International business faces EMEA headwinds International net sales declined 2% in the fourth quarter. Sales volume fell 2% and price and mix declined 4%, while currency provided a partial offset. Growth in Asia-Pacific and Latin America was more than offset by conditions in Europe, the Middle East and Africa, including shipment disruption and higher freight costs resulting from the Middle East conflict.
Gray said quick-service traffic declined 2% in the U.K. and France and 1% in Italy during the quarter, while traffic rose slightly in Germany and Spain. The company also faced higher raw potato costs, lower fixed-cost absorption amid slower European demand and higher freight expenses.
For the full year, international sales increased 1%, aided by a 5% currency benefit and 2% volume growth, particularly in Asia-Pacific and Latin America. Price and mix declined 6%. On a constant-currency basis, international sales declined 4%.
International EBITDA declined for the year due to lower organic sales in a competitive environment and higher manufacturing costs. The higher costs included write-offs of excess potatoes, lower utilization at international plants and startup expenses at the company’s Argentina facility.
Lamb Weston temporarily curtailed a line in the Netherlands during the fourth quarter and announced plans in June to close an older plant in Broekhuizenvorst, Netherlands. Smith said the facility represents about 10% of EMEA production capacity. He said the closure is expected to improve utilization by roughly 10 percentage points, moving utilization into the high-80% to low-90% range.
Executive Chair Jan Craps said the company is conducting a broader strategic review of its international footprint, evaluating country clusters, profit pools, resource allocation and potential roles for mergers and acquisitions, partnerships or divestitures. “Technically, everything is on the table,” Craps said in response to an analyst question, adding that more details are expected at an investor day planned for early calendar 2027.
Cash flow, cost savings and shareholder returns Full-year adjusted EBITDA declined 9%, as international challenges only partly offset gains in North America. The extra week added $29 million in adjusted EBITDA for the year.
The company generated $943 million of operating cash flow, up $75 million from the prior year, helped by $55 million of favorable working-capital changes. Capital expenditures fell by more than $240 million year over year to $410 million, resulting in free cash flow of $537 million.
Lamb Weston returned $321 million to shareholders during fiscal 2026, including $208 million in cash dividends and $113 million in share repurchases. The company repurchased $63 million of stock during the fourth quarter. It also declared a quarterly dividend of $0.38 per share, payable Sept. 4.
At year-end, the company had approximately $1.3 billion available under its revolving credit facility. Net debt was $3.8 billion, and its net debt-to-adjusted EBITDA leverage ratio was 3.4 times on a trailing 12-month basis.
Smith said the company exceeded its first-year cost-savings milestone under a program targeting at least $250 million in annualized run-rate savings by the end of fiscal 2028. The first-year target had been $100 million. Savings have come from supply-chain improvements, lower manufacturing cost per pound and reduced selling, general and administrative expenses, he said.
Fiscal 2027 outlook For fiscal 2027, Lamb Weston expects net sales ranging from flat to up 1% compared with a 52-week adjusted fiscal 2026 sales base of $6.5 billion. The company forecast adjusted operating income of $720 million to $800 million, adjusted EBITDA of $1.1 billion to $1.2 billion and adjusted earnings per share of $2.95 to $3.25, compared with adjusted EPS of $2.90 for the comparable 52-week fiscal 2026 period.
The outlook assumes flat global restaurant traffic. Gray said lower raw potato costs, further supply-chain savings, higher utilization and the absence of prior-year potato write-offs and Argentina startup costs are expected to be largely offset by inflation in other inputs.
North America sales are expected to range from flat to up low single digits on a comparable-week basis, with low-single-digit volume growth and a low-single-digit price-and-mix decline. International sales are expected to decline by low single digits, reflecting competitive conditions in EMEA, while international EBITDA is projected to improve 40% to 50% as prior-year charges are lapped. First-quarter fiscal 2027 sales are expected to be flat and EBITDA is expected to decline by the low teens before earnings growth accelerates through the remainder of the year. The company expects operating cash flow of $750 million to $800 million and capital expenditures of approximately $380 million to $410 million in fiscal 2027. On an accrual basis, it expects investments of up to $350 million as it applies tighter capital-allocation discipline.
About Lamb Weston (NYSE:LW)Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company's portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.
Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world's largest producers of frozen potato products.
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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Lamb Weston Holdings, Inc. (LW) Q4 2026 Earnings Call July 24, 2026 9:00 AM EDT
Company Participants
Debbie Hancock - Vice President of Investor Relations
Jan Eli B. Craps - Executive Chair
Mike Smith - President, CEO & Director
James Gray - Chief Financial Officer
Conference Call Participants
Andrew Lazar - Barclays Bank PLC, Research Division
Peter Galbo - BofA Securities, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
Max Andrew Gumport - BNP Paribas, Research Division
Scott Marks - Jefferies LLC, Research Division
Presentation
Operator
Good day, and welcome to the Lamb Weston Fourth Quarter and Full Year Fiscal 2026 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Debbie Hancock. Please go ahead.
Debbie Hancock
Vice President of Investor Relations
Thank you. Good morning, and thank you for joining us for Lamb Weston's Fourth Quarter and Full Year Fiscal 2026 Earnings Call. I'm Debbie Hancock, Lamb Weston's Vice President of Investor Relations. Earlier today, we issued our press release and posted slides that we will use for our discussion today. You will find both on our website at lambweston.com.
Please note that during our remarks, we will make forward-looking statements about the company's expected performance that are based on our current expectations. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements.
Some of today's remarks include non-GAAP financial measures. These non-GAAP financial measures should not be considered a replacement for and should be read together with our GAAP results. You can find the GAAP to non-GAAP reconciliations in our earnings release in the appendix to our presentation. Joining me today are Jan Craps, Executive Chair; Mike Smith, President and CEO; and Jim Gray, Chief Financial Officer.
Key Takeaways Lamb Weston's fiscal Q4 sales rose 6% as volume grew 7% for a sixth consecutive quarter.North America sales climbed 9% on contract wins, share gains, retention and an extra week.Fiscal 2027 sales are seen flat to up 1%, with adjusted EPS projected at $2.95-$3.25. Lamb Weston Holdings, Inc. (LW - Free Report) reported solid fourth-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals.
LW’s adjusted earnings were 87 cents per share, down 5% year over year. However, the bottom line beats the Zacks Consensus Estimate of 62 cents.
Net sales amounted to $1,770.1 million, beating the Zacks Consensus Estimate of $1,701 million. The top line increased 6% year over year, driven by a 7% increase in sales volume, a 2% favorable currency impact and the benefit of an extra week, partially offset by a 3% decline in price/mix. Sales volume increased for the sixth consecutive quarter. Our model suggested a volume increase of 1.9% in the quarter.
LW’s Quarterly Results: Key Metrics & InsightsAdjusted gross profit decreased 0.2% year over year to $342.9 million. The adjusted gross margin decreased 110 basis points (bps) to 19.4%. Our model projected adjusted gross margin contraction of about 220 basis points to 18.4%.
Adjusted SG&A expenses were up 11.1% to $163.5 million from $147.1 million reported in the year-ago quarter. As a percentage of sales, the same increased 40 bps to 9.2%.
Adjusted EBITDA declined 2% to $287.6 million, while adjusted EBITDA margin contracted 130 bps to 16.2%.
LW Provides Q4 Insights by SegmentNet sales for the North America segment increased 9% to $1,206.2 million compared with the prior-year quarter, driven by 11% sales volume growth, marking the sixth consecutive quarter of volume growth. This increase was fueled by customer contract wins, market share gains, strong customer retention and the benefit of an additional week. The segment’s price/mix declined 2%, reflecting modest pricing and trade support for customers, as well as an ongoing mix shift toward faster-growing chain customers and private-label products.
The North America segment adjusted EBITDA increased 17% to $304.7 million, driven by higher sales volumes and lower manufacturing costs per pound, reflecting operating leverage from cost savings initiatives and improved manufacturing efficiencies. These benefits more than offset inflationary pressures, unfavorable price/mix and higher operating expenses.
Net sales for the International segment declined 2% to $563.9 million, reflecting a 2% decrease in sales volume and a 4% decline in price/mix, partially offset by a favorable foreign currency impact. Growth in Asia Pacific and Latin America, along with the benefit of an additional week, was more than offset by challenging market conditions in EMEA, including the impact of the Middle East conflict that began early in the fourth quarter of fiscal 2026.
International segment adjusted EBITDA fell 81% to $11.8 million, primarily due to lower net sales, higher manufacturing costs per pound and increased operating expenses.
Lamb Weston’s Financial Health SnapshotThe company ended the quarter with cash and cash equivalents of $68.2 million, long-term debt and financing obligations (excluding the current portion) of $3,595.2 million and total shareholders’ equity of $1,824.9 million.
Lamb Weston generated $942.9 million as net cash from operating activities for fiscal 2026, wherein capital expenditures amounted to $410.1 million.
In the fourth quarter of fiscal 2026, Lamb Weston returned $116 million to its shareholders through cash dividends and stock repurchases.
On July 23, management declared a quarterly dividend of 38 cents per share, payable on Sept. 4, to its shareholders of record as of Aug. 7, 2026.
What to Expect From LW in FY27?For fiscal 2027, Lamb Weston expects net sales to be flat to 1% growth over the adjusted fiscal 2026 52-week base of $6.5 billion. The company expects adjusted EBITDA to be between $1.1 billion and $1.2 billion, while adjusted EPS is projected at $2.95 to $3.25, compared with $3.01 in fiscal 2026. Capital expenditures are expected to be $380 million to $410 million.
LW’s Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 13.5% in the past three months compared with the industry’s 5.8% growth.
Image Source: Zacks Investment Research
Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Hormel Foods Corporation (HRL - Free Report) develops, processes and distributes various meat, nuts and other food products to foodservice, convenience store and commercial customers in the United States and internationally. It carries a Zacks Rank of 2 at present. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
The Zacks Consensus Estimate for Hormel Foods’ current fiscal-year sales and earnings indicates growth of 1.4% and 9.5%, respectively, from the prior-year reported levels.
Key Takeaways AppFolio beat Q2 earnings and revenue estimates as Value Added Services and premium tiers grew.APPF raised 2026 revenue and non-GAAP operating margin guidance after a strong second quarter.AppFolio expanded premium-tier adoption, boosted cash flow and grew units under management to 9.6 million. AppFolio, Inc. (APPF - Free Report) reported second-quarter 2026 non-GAAP earnings of $1.71 per share, which increased 23.9% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.67 by 2.4%.
Revenues rose 19.3% to $281 million and beat the consensus mark of $277 million by 1.5%. Growth reflected strength in Value Added Services, premium-tier adoption and new customer wins. Units under management increased 8% to 9.6 million.
APPF's Q2 Revenue Mix StrengthensSubscription Services revenues increased 14% year over year to $59.8 million. Management attributed the gain to new customer additions, growth in units under management and continued upgrades to the Plus and Max premium tiers.
Value Added Services revenues advanced 21.8% to $219.5 million, led by FolioGuard risk mitigation services, FolioScreen offerings and online payments. Resident Onboarding Lift, Move-In Services through LiveEasy and Realm-X Performers also contributed a growing share. Other revenues declined 37.2% to $1.9 million.
AppFolio Expands Platform AdoptionAppFolio ended the quarter with 22,751 customers, up 6% from 21,403 a year earlier. Nearly one in three units was on a premium tier compared with approximately one in four previously, indicating deeper adoption of the company’s Plus and Max offerings.
The company expanded Realm-X Flows, its workflow orchestration layer, to five times the number of triggers and more than 1,000 conditional routing options. Among customers using Flows, runs grew at a triple-digit rate across lead nurturing, rental applications, move-ins, delinquency and renewals.
Leasing Performer was involved in roughly half of completed showings for customers that deployed it. Bluestone’s use of the product handled more than 10,000 leads, 55% of which arrived after hours, while delivering an average response time of less than nine seconds.
APPF Widens Operating MarginsNon-GAAP operating income grew 23.8% year over year to $76.2 million. The non-GAAP operating margin expanded 90 basis points to 27.1%, reflecting operating leverage as revenues grew faster than several expense categories.
GAAP operating income increased 30.8% to $53 million, while the corresponding margin improved 160 basis points to 18.8%. GAAP net income rose 15.5% to $41.5 million.
Non-GAAP cost of revenues, excluding depreciation and amortization, was 36% of revenues, up from 35%. Operating efficiencies were offset by the payments product mix and incremental data-center capacity supporting increased customer use of AI capabilities.
Research and development declined to 15% of revenues from 16%, aided by productivity gains from AI tools. Sales and marketing and general and administrative expenses remained at 14% and 7% of revenues, respectively. The workforce grew 3% to 1,732 employees.
AppFolio's Cash Flow and Balance SheetOperating cash flow totaled $87.6 million, up 66.4% from $52.6 million in the year-ago quarter. The measure represented 31.2% of revenues compared with 22.3% a year earlier, highlighting stronger cash conversion alongside profit growth.
APPF ended June with $217.4 million in cash and cash equivalents and $4.3 million in current investment securities. The company had no borrowings under its $150 million revolving credit facility and remained in compliance with its covenants.
The company did not repurchase shares during the second quarter after spending $125 million on buybacks in the first quarter. Management said its capital-allocation priorities remain focused on business investment, with repurchases conducted opportunistically.
APPF Raises 2026 OutlookAppFolio raised its 2026 revenue guidance to $1.117-$1.127 billion. The midpoint implies 18% growth, supported by premium-tier adoption, new business units and increased use of offerings, including agentic AI Performers and resident services. The Zacks Consensus Estimates for AppFolio’s revenues are pegged at $1.12 billion, implying a year-over-year increase of 17.5%.
The outlook assumes a more moderate pace of unit expansion among existing customers, while new customer acquisition and retention remain healthy. Management expects Subscription Services and Value Added Services seasonality to be broadly consistent with 2025.
The company also lifted its non-GAAP operating margin outlook to 26.5-28%. Management expects cost of revenues, excluding depreciation and amortization, to remain relatively flat as a percentage of revenues compared with 2025. Diluted weighted-average shares are projected at approximately 36 million.
The Zacks Consensus Estimate for AppFolio’s earnings in 2026 is pegged at $6.75, implying a year-over-year increase of 28%.
Zacks Rank and Stocks to ConsiderCurrently, TXN carries a Zacks Rank #3 (Hold).
Some better top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have rallied 69.6% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, down by a penny over the past seven days, indicating an increase of 59.4% year over year.
Shares of Applied Materials have skyrocketed 196.2% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by a penny over the past seven days, indicating a rise of 28.9% year over year.
Cisco Systems shares have surged 63.6% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year.
Key Takeaways CMCSA wireless added a record 448K lines as Connectivity & Platforms EBITDA beat estimates.Peacock's first EBITDA profit helped Media EBITDA beat estimates on sports and ad strength.Studios EBITDA beat estimates, while Theme Parks EBITDA missed on weaker attendance. Comcast (CMCSA - Free Report) reported second-quarter 2026 adjusted EPS of $1.04, which beat the Zacks Consensus Estimate by 7 cents and declined 16.7% year over year.
Revenues of $29.94 billion beat the consensus mark by 2.33% and declined 1.2% year over year, though pro forma revenues, which adjust for the Versant separation and the sale of Sky's German operations, increased 4.7%. (Read More: Comcast's Q2 Earnings Surpass Estimates, Revenues Decrease Y/Y)
The company ended the quarter with 10.2 million domestic wireless lines, up from 8.5 million in the prior year period. However, total domestic broadband customers declined to 28.5 million from 29 million. Adjusted EBITDA declined 13.4% to $8.9 billion, or 5.3% on a pro forma basis.
Wireless and Peacock Strength Drive Segment BeatsDomestic wireless line net additions of 448,000 marked the company's best quarterly result on record and beat the consensus estimate by 11.64%. Domestic broadband customer net losses of 167,000 came in worse than expected, missing the consensus mark by 3.43%, while domestic video customer net losses of 280,000 also missed estimates by 2.28%.
At Media, Peacock achieved quarterly profitability for the first time, generating EBITDA of $189 million compared with a loss of $101 million in the prior year period, on the back of the NBA playoffs, the FIFA World Cup and Love Island USA. Media Adjusted EBITDA of $708 million beat the Zacks Consensus Estimate by 34.63%.
Studios also outperformed, with Adjusted EBITDA of $202 million beating the consensus mark by 18.07%, supported by strong theatrical performance across the slate.
Connectivity & Platforms Beats While Theme Parks MissTotal Connectivity & Platforms Adjusted EBITDA of $7.96 billion declined year over year but beat the consensus estimate by 0.69%. Within the segment, Residential Connectivity & Platforms Adjusted EBITDA of $6.45 billion beat estimates by 0.25%, while Business Services Connectivity Adjusted EBITDA of $1.52 billion beat by 2.34%, aided by growth in enterprise solutions offerings.
Theme Parks Adjusted EBITDA of $609 million missed the Zacks Consensus Estimate by 6.72%, pressured by softening attendance in Orlando amid higher travel costs and weaker consumer sentiment, as well as continued China-related travel restrictions affecting the Osaka park.
Total Content & Experiences Adjusted EBITDA of $1.33 billion beat the consensus mark by 13.48%, as strength in Media and Studios more than offset the Theme Parks shortfall.
Broadband and Advertising Revenue Top EstimatesDomestic broadband revenues declined 5.5% to $6.28 billion, beating the Zacks Consensus Estimate by 0.45%, as lower average rates and a smaller customer base weighed on the top line despite the beat.
Media domestic advertising revenue rose 55% to $2.16 billion, beating the consensus mark by 12.24%, driven in part by incremental FIFA World Cup advertising along with stronger NBA and Peacock advertising demand.
Within Content & Experiences, Studios content licensing revenues declined slightly to $1.80 billion, missing the Zacks Consensus Estimate by 7.04%, as lower film studio licensing activity offset gains at the television studios.
Studios’ theatrical revenues, however, surged to $972 million from $284 million a year earlier, beating the consensus mark by 199.46%, powered by The Super Mario Galaxy Movie, Obsession and the international distribution of Michael.
Comcast generated free cash flow of $4.6 billion in the quarter and returned $2.1 billion to shareholders through dividends and share repurchases.
Zacks Rank & Stocks to ConsiderComcast currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Cimpress (CMPR - Free Report) , The Marcus (MCS - Free Report) and News Corporation (NWSA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Cimpress have returned 46.2% in the year-to-date period. Cimpress is slated to report fourth-quarter fiscal 2026 results on July 29.
Shares of The Marcus have returned 53.4% in the year-to-date period. The Marcus is slated to report second-quarter 2026 results on July 30.
Shares of News Corporation have returned 0.8% in the year-to-date period. News Corporation is slated to report its fourth-quarter fiscal 2026 results on Aug. 05.
Key Takeaways Cadence reports Q2 results on July 27, with EPS and revenues expected to rise more than 20%.Recurring revenues, an $8 billion backlog and rising EDA spending support Cadence's outlook.Macroeconomic uncertainty, U.S.-China tensions and stiff competition remain concerns. Cadence Design Systems, Inc. (CDNS - Free Report) will release results for the second quarter of 2026 on July 27.
The Zacks Consensus Estimate for second-quarter earnings is $2.05 per share, unchanged in the past 60 days. The consensus mark implies a 24.2% increase from the year-ago actual. The Zacks Consensus Estimate for revenues is pinned at $1.58 billion, indicating a nearly 23.6% uptick from the year-ago actual.
Management expects revenues to be $1.555-$1.595 billion for the second quarter. The company reported sales of $1.275 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.02 and $2.08. The company reported an EPS of $1.65 in the year-ago quarter. Non-GAAP operating margin is estimated to be between 44.5% and 45.5% in the second quarter.
Cadence has an impressive earnings surprise history. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.48%.
Price Performance
Image Source: Zacks Investment Research
CDNS stock has gained 2.7% in the past six months against the Computer-Software industry’s decline of 22.7%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 5.6% and 8.7%, respectively, in the same time frame.
Factors Shaping CDNS’ Q2 ResultsBroad-based momentum across electronic design automation (“EDA”), IP and System Design & Analysis (“SDA”), supported by robust bookings, improving pricing dynamics and sustained demand tied to AI-driven semiconductor complexity, remains a key catalyst.
AI has been driving a major transformation in semiconductor and system design and Cadence is deeply integrated into this shift. Design activity across several verticals, especially data centers, drones, robotics and automotive, has been robust, due to AI, hyperscale computing and 5G. The focus on Generative AI, Agentic AI and Physical AI has been leading to an exponential increase in computing demand and semiconductor innovation.
Rising customer R&D investments in AI-driven automation have been creating a favorable demand environment for Cadence. On the last earnings call, Management noted that EDA spending has now increased from approximately 7% to 11% of customer R&D budgets, and this is expected to rise further with AI-driven automation.
The launch of ChipStack AI Super Agent (February 2026), the industry’s first agentic AI workflow purpose-built for front-end silicon design and verification, bodes well. Cadence acquired Chipstack, which provides agentic AI solutions for chip verification, in November 2025. On the last earnings call, the company emphasized its agentic AI strategy, including the launch of AgentStack framework and new AI Super Agents (ViraStack and InnoStack) that are designed to automate more of the chip design workflow. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles.
Cadence’s ratable software model and high mix of recurring revenues are other positives. At the end of the first quarter of 2026, Cadence had a backlog of $8 billion.
The company has been collaborating with several tech giants, including Qualcomm and NVIDIA, on their next-generation AI designs across both training and inference. Expanding partnerships with its foundry partners, like Samsung, Taiwan Semiconductor Manufacturing, Intel and Arm Holdings, bodes well.
Ongoing uncertainty prevailing over global macroeconomic conditions, especially U.S.-China tech tensions, along with stiff competition in the EDA space and inflation, remains a concern ahead of the first-quarter earnings. China contributed to about 13% of first-quarter 2026 revenues and management expects 2026 contribution to be about the same percentage.
Taking a Look at SegmentsCore electronic design automation (“EDA”) business (which constitutes Custom IC, Digital IC and Functional Verification businesses) is likely to have gained from demand for the new hardware systems, especially among AI, automotive and high-performance computing clients. Uptake of solutions such as Cerebrus AI Studio, Virtuoso Studio, Xcelium, Verisium SimAI and ChipStack is likely to have cushioned the segment’s performance.
The SDA division is likely to have gained from the increasing demand for BETA CAE solutions, along with 3D-IC, Sigrity and Clarity.
The IP business has been gaining from an expanding silicon solutions portfolio and increasing demand for solutions in AI, HPC and automotive use cases. The company has been witnessing higher demand for its Star IP portfolio across interface, memory and foundation IP amid higher complexity of advanced node designs and chiplet-based architectures.
Earnings Whispers for CDNSOur proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
CDNS currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Celestica (CLS - Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celestica is scheduled to report quarterly earnings on July 27. The Zacks Consensus Estimate for CLS’ to-be-reported quarter’s earnings and revenues stands at $2.29 per share and $4.35 billion, respectively. Shares of Celestica have gained 96.7% in the past year.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #1 at present. STX is scheduled to report quarterly figures on July 28. The Zacks Consensus Estimate for Seagate Technology’s to-be-reported quarter’s earnings and revenues is pinned at $5.10 per share and $3.49 billion, respectively. Shares of Seagate Technology are up 505.3% in the past year.
Teradyne (TER - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on July 28. The Zacks Consensus Estimate for Teradyne’s to-be-reported quarter’s earnings and revenues is pinned at $2.04 per share and $1.22 billion, respectively. Shares of Teradyne are up 314.6% in the past year.
Paul Cunningham, Sr. Vice President of Cadence Design Systems, Inc. (CDNS +1.09%), sold 2,000 shares of common stock on July 15, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$767,000Shares sold2,000Post-transaction shares (directly held)125,586Post-transaction value$46.66 millionTransaction value based on SEC Form 4 weighted average sale price ($383.36); post-transaction value based on July 15, 2026 market close ($371.50).
Key questionsWhat is the current scale of the executive's remaining interest?
Paul Cunningham maintains 125,586 direct shares valued at $46.66 million, representing a 0.0455% insider ownership stake in the $91.0 billion company.What market context surrounded the timing of this disposition?
The sale occurred while the stock was priced at $371.50 at the July 15, 2026 market close, following a 17% one-year total return as of the transaction date.How does this transaction relate to the executive's equity compensation schedule?
The shares were acquired through the exercise of options that vested at a rate of 1/48th per month beginning in March 2021, with 8,328 derivative securities remaining in the executive's holdings.What are the fundamental indicators for the company at the time of filing?
Cadence Design Systems reported trailing twelve-month revenue of $5.5 billion and net income of $1.2 billion, supported by a workforce of 13,800 employees.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$364.65Market Capitalization$100.6 billionRevenue (TTM)$5.5 billionNet Income (TTM)$1.2 billionCompany SnapshotCadence Design Systems delivers a comprehensive portfolio of electronic design automation (EDA) software, specialized hardware platforms, professional services, and pre-designed integrated circuit building blocks that enable semiconductor and systems companies to design, verify, and manufacture advanced chips.The company generates revenue through software licensing, subscription-based services, hardware sales for emulation and prototyping platforms, and professional consulting services that support customers throughout the semiconductor design and verification lifecycle.Cadence serves semiconductor manufacturers, fabless design companies, and systems-on-chip developers globally, with particular strength in serving enterprise customers requiring advanced functional verification, simulation, and emulation capabilities for complex chip design.Cadence Design Systems is a global leader in electronic design automation with a market capitalization of $100.6 billion and TTM revenue of $5.5 billion, commanding a dominant position in the semiconductor design software market. The company's integrated platform approach—combining software tools such as JasperGold for formal verification and Xcelium for logic simulation with enterprise-grade hardware platforms including Palladium emulation and Protium prototyping systems—creates significant switching costs and customer lock-in. With 13,800 employees and a TTM net income of $1.2 billion, Cadence demonstrates strong operational leverage and profitability while maintaining strategic focus on next-generation chip design methodologies and artificial intelligence-driven design automation capabilities.
What this transaction means for investorsCunningham’s sale of Cadence shares likely should not concern investors.
It occurred under a Rule 10b5-1 trading plan, indicating it was a pre-planned sale driven by portfolio management rather than concerns about the company. Moreover, the fact that he sold around 2% of his direct holdings strongly indicates that he remains bullish on the tech stock.
This logic appears sound. As previously mentioned, Cadence stock has risen over the last year. Rising demand related to AI and high-performance computing (HPC) has helped boost revenue. Furthermore, it has made tech-related deals with companies such as Intel and Samsung.
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334.05
Additionally, it remains a leader in the electronic design automation (EDA), which is critical in the design, simulation, and manufacture of semiconductors.
Admittedly, considering its P/E ratio of 85, now may not be a great time to add shares. Still, considering the AI-driven growth in its industry, now is a good time to focus on holding the 98% of shares Cunningham chose to keep rather than the modest amount he sold.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cadence Design Systems and Intel. The Motley Fool has a disclosure policy.
Americké akciové trhy rostou díky naději na obnovení rozhovorů mezi USA a Íránem a zmírnění napětí na Blízkém východě.
Širší index S&P 500 posiluje o 0,41 % na 7438,47 bodu a index Dow Jones si připisuje 0,56 % na 52002,68 bodu. Technologie však mírně zaostávají, technologický Nasdaq Composite odepisuje 0,07 % na 25120,91 bodu. Pozitivní náladu na trhu podporuje také úspěšný start výsledkové sezóny, v níž většina firem překonává očekávání ziskovosti.
V rámci jednotlivých odvětví indexu S&P 500 vykazují nejsilnější růst reality o 2,6 %, následované základními materiály s nárůstem o 1,2 % a nezbytnou spotřebou, která si připisuje 0,8 %. Na druhé straně zaznamenávají jen mírné zisky zbytná spotřeba, informační technologie i utility, které shodně přidávají 0,1 %.
Mezi nejsilnější individuální akcie se řadí Digital Realty Trust (DLR) s prudkým růstem o 14 %. Výrazně posiluje také SLB (SLB) o 10 %, Smurfit Westrock (SW) o 7,9 %, Equinix (EQIX) o 6,3 % a International Paper (IP), která si připisuje 6,2 %. Na opačné straně trhu po výprodejích v technologickém a dodavatelském sektoru klesá Coherent Corp (COHR) o 7,8 %. Nedaří se ani firmám Sandisk Corp (SNDK) a CH Robinson Worldwide (CHRW), které shodně odepisují 7,5 %, Lumentum Holdings (LITE) s poklesem o 6,9 % a Robinhood Markets (HOOD), jež oslabuje o 6,1 %.
Zprávy o možném uklidnění situace na Blízkém východě tlačí dolů ceny energií. Severoamerická lehká ropa WTI klesá o 4,2 % na 88,31 dolaru za barel. Spotové zlato naopak mírně posiluje o 0,4 % na 4064,95 dolaru za unci. Americký dolar vykazuje stabilní vývoj, když k euru zůstává téměř bez změny na 1,1379 dolaru, britská libra mírně roste o 0,1 % na 1,3333 dolaru a japonský jen drží úroveň 163,76 jenu za dolar. Pokles cen ropy zmírňuje obavy z inflace, což vede ke poklesu výnosů desetiletých amerických vládních dluhopisů o tři bazické body na 4,66 %. Bitcoin reaguje na celkový vývoj poklesem o 1,9 % na 63850,84 dolaru.
Index Dow Jones +0,56 % na 52002,68 b.
S&P 500 +0,41 % na 7438,47 b.
Nasdaq Composite -0,07 % na 25120,91 b.
Index S&P 500 +0,41 % na 7438,47 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Reality +2,6 % Zbytná spotřeba +0,1 % Základní materiály +1,2 % Informační technologie +0,1 % Nezbytná spotřeba +0,8 % Utility +0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Digital Realty Trust (DLR) +14 % Coherent Corp (COHR) -7,8 % SLB (SLB) +10 % Sandisk Corp (SNDK) -7,5 % Smurfit Westrock (SW) +7,9 % CH Robinson Worldwide (CHRW) -7,5 % Equinix (EQIX) +6,3 % Lumentum Holdings (LITE) -6,9 % International Paper (IP) +6,2 % Robinhood Markets (HOOD) -6,1 %
Daniel Marván, Fio banka, a.s.
A month has gone by since the last earnings report for Paychex (PAYX - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Paychex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Paychex's Q4 Earnings:Paychex, Inc. reported solid fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues coming in line. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 10.9% from the year-ago quarter. Total revenues of $1.61 billion rose 12.5% year over year and beat the consensus estimate by a slight margin.
The earnings upside was backed by segment growth, Paycor contributions and disciplined expense performance. Management Solutions led the quarter, while PEO and Insurance Solutions, and client fund interest added further support.
PAYX's Management Solutions Powers GrowthManagement Solutions’ revenues increased 14% year over year to $1.18 billion in the fiscal fourth quarter. The segment benefited from higher product penetration and growth in client worksite employees within Human Resources Solutions.
Paycor, acquired in April 2025, contributed about 8 percentage points to Management Solutions revenue growth. The acquisition also supported price realization and higher revenues per client, reflecting Paycor’s upmarket client base.
Management noted that the quarter included a full period of Paycor revenues and expenses compared with a partial period in the prior-year quarter. That comparison helped drive the sharper contribution from the acquired business in the latest quarter.
Paychex's PEO & Client Funds Add SupportProfessional Employer Organization and Insurance Solutions revenues were $369.7 million, up 9% from the year-ago quarter. Growth in the number of average PEO worksite employees supported the segment’s performance.
PEO insurance revenues also increased during the quarter. Interest on funds held for clients rose 15% to $52.2 million, driven by higher average investment balances resulting from the Paycor acquisition.
Total service revenues came in at $1.55 billion, up 12% from the year-ago period. The broad advance across core services showed that growth was not confined to one operating line.
PAYX's Margin Profile Expands in Q4Total expenses were relatively flat year over year at $1 billion. Increases in compensation-related expenses, amortization of intangible assets, technology investments, selling initiatives and marketing spending were offset by lower acquisition-related compensation and professional service costs.
Operating income rose 40% to $604.7 million. The operating margin expanded to 37.7% from 30.2% a year earlier, while the adjusted operating margin improved to 42.1% from 40.4%.
Adjusted operating income increased 17% to $675.8 million. The adjusted figure excludes acquisition-related costs, which were lower than in the prior-year quarter.
Paychex's Profitability Shows Earnings LeverageNet income increased 41% year over year to $420.6 million in the fiscal fourth quarter. Diluted earnings were $1.17 per share, up 43% from the prior-year period.
Adjusted net income rose 10% to $474.6 million. EBITDA increased 39% to $719.1 million, while adjusted EBITDA advanced 17% to $729.7 million, reflecting revenue gains and reduced acquisition-related drag.
Interest expenses increased to $64.7 million from $63.7 million. Other income, net, declined to $14.2 million from $21.9 million due to lower average balances on corporate investments and higher share repurchases in fiscal 2026.
PAYX's Balance Sheet Remains SolidPaychex ended fiscal 2026 with cash, restricted cash and total corporate investments of $1.2 billion. Short-term and long-term borrowings, net of debt issuance costs, totaled $4.6 billion as of May 31, 2026.
Cash flow from operations was $2.6 billion for the fiscal year. The company paid out cumulative dividends of $4.43 per share, totaling $1.6 billion, and repurchased 5.6 million shares for $611 million.
Fiscal 2026 total revenues increased 17% to $6.51 billion. Adjusted diluted earnings advanced 11% to $5.51 per share, whereas adjusted operating income grew 19% to $2.81 billion.
Paychex's FY27 View Points to GrowthFor fiscal 2027, Paychex expects total revenues to grow 5-6%. Management Solutions’ revenues are also projected to rise 5-6%, while PEO and Insurance Solutions revenues are expected to increase 6-7%.
Interest on funds held for clients is expected to be $195-$205 million. The company anticipates an adjusted operating margin of 44%, an effective income tax rate of 24% and adjusted diluted earnings growth of 7-9%.
Paychex also highlighted the launch of WISE, its AI-powered intelligence engine, across HCM platforms and internal operations. Management said that the platform is designed to unlock insights from unstructured data, increase productivity and enhance client outcomes.
Adjusted earnings of 99 cents per share beat the Zacks Consensus Estimate by 4.2% and increased 8.8% on a year-over-year basis. Total revenues of $1.2 billion also beat the Zacks Consensus Estimate by 0.5% and increased 7.4% year over year.
Revenues in Detail
Revenues from Management Solutions segment increased 8% year over year to $895.3 million. The segment benefited from growth in the number of client employees served for human capital management (HCM) and additional worksite employees for HR Solutions. Also, improved revenue per client on price realization and higher product penetration, strong demand for HR Solutions, retirement, time and attendance solutions and expansion of HCM ancillary services acted as tailwinds.
Professional employer organization (“PEO”) and Insurance Solutions’ revenues were $273.3 million, up 4% from the year-ago quarter’s level. The uptick was owing to growth in the number of average worksite employees. Interest on funds held for clients increased 54% year over year to $21.7 million.
Operating Performance
Operating income increased 7% year over year to $472.3 million. EBITDA of $518.6 million increased 4.7% year over year.
Balance Sheet & Cash Flow
Paychex exited second-quarter fiscal 2022 with cash and cash equivalents of $1.1 billion compared with $1.18 billion reported at the end of the prior quarter. Long-term debt was $797.9 million compared with $797.8 million in the prior quarter. Cash provided by operating activities was $321.6 million in the reported quarter. During the reported quarter, PAYX paid out $284.7 million as dividends.
Fiscal 2023 View Tweaked
Paychex upped its adjusted earnings per share view with respect to year-over-year growth for fiscal 2023. Adjusted EPS is now expected to register 12-14% growth compared with the prior expectation of 11-12% growth. PAYX continues to expect total revenues to register 8% (prior view: 7-8%) growth. Management Solutions’ revenues are expected to grow 7-8% (prior view: 5-7%). PEO and Insurance Solutions’ revenues are expected to grow 5-7% (prior view: 8-10%).
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, Paychex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paychex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Key Takeaways GEHC is expected to post healthy Q2 revenue growth, backed by imaging, diagnostics, and services demand.GEHC faces margin pressure from inflation, freight, tariffs, and higher input costs despite pricing actions.GEHC expects stronger second-half performance as efficiencies, pricing, and new products gain traction. GE HealthCare Technologies Inc. (GEHC - Free Report) is scheduled to report second-quarter 2026 results on July 29, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of 99 cents missed the Zacks Consensus Estimate by 7.48%. The company beat on earnings in three of the trailing four quarters and missed once, delivering an average surprise of 2.90%.
Let’s check out the factors that might have shaped GEHC’s performance prior to the announcement.
Factors Likely to Have Driven GEHC’s Q2 PerformanceGE HealthCare is expected to have delivered another quarter of healthy revenue growth, supported by resilient global demand for imaging equipment, continued strength in Pharmaceutical Diagnostics (PDx), and robust services performance. On its first-quarter earnings call, management had maintained its full-year organic revenue growth outlook of 3-4%, citing healthy order trends, a record $21.8 billion backlog, strong book-to-bill, and improving commercial execution despite a cautious view on China.
However, profitability is likely to have remained under pressure from elevated inflation in memory chips, freight, oil and commodity costs, with management already guiding for low-single-digit adjusted EPS decline in the second quarter before improvement in the second half.
Following the organizational restructuring, the newly created Advanced Imaging Solutions business is likely to have benefited from sustained demand for CT, X-ray, ultrasound and visualization products. Imaging demand should have been supported by Revolution Vibe cardiac CT systems, while Advanced Visualization Solutions likely continued to benefit from adoption of products, such as Vivid Pioneer and other AI-enabled platforms. Although Photonova Spectra photon-counting CT generated encouraging customer interest after regulatory approvals, revenue contribution is unlikely before 2027 due to typical installation timelines.
Pharmaceutical Diagnostics is likely to have remained the company's strongest-performing business. Continued growth in contrast media, radiopharmaceuticals and molecular imaging, along with accelerating Flyrcado adoption and increasing Vizamyl demand driven by Alzheimer's imaging, likely supported another solid quarter. However, planned investments in the radiopharmaceutical pipeline and integration of recent acquisitions may have weighed on margin expansion.
Patient Care Solutions likely remained the weakest segment, although management expects gradual improvement later in the year as large monitoring installations convert from backlog and the premium anesthesia platform approaches regulatory clearance. Lower first-half volume and ongoing tariff-related costs probably continued to weigh on segment profitability.
On the margin front, the second quarter is expected to represent the peak impact from inflationary input costs, including memory chips and freight, while pricing actions and cost mitigation initiatives are likely to have provided only limited near-term relief because much of the second-quarter revenues probably originated from existing backlog. Adjusted EBIT margin and EPS are expected to have remained pressured, with a stronger recovery anticipated during the second half as pricing actions, operating efficiencies and new product momentum begin to offset inflationary pressures.
GEHC’s Estimate PictureFor second-quarter 2026, the Zacks Consensus Estimate for revenues is pegged at $5.25 billion, implying an improvement of 5% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $1.04, indicating a decrease of 1.9% from the prior-year period’s reported number.
What Our Model Suggests for GE HealthCarePer our proven model, 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: GE HealthCare has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
GEHC’s Share Price PerformanceSo far this year, GE HealthCare’s shares have lost 24.4% compared with the industry’s 22.5% decline. The S&P 500 has gained 9.2% during the said period.
Image Source: Zacks Investment Research
Stocks Worth a LookHere are some stocks from broader medical sector worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Aug. 11. You can see the complete list of today’s Zacks #1 Rankstocks here.
CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on Aug. 4.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS implies an improvement of 10.9% from the year-ago reported figure.
Agilent Technologies (A - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present.
A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS reflects an improvement of 8% from the year-ago reported figure.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Steven Madden (SHOO - Free Report) , which belongs to the Zacks Shoes and Retail Apparel industry, could be a great candidate to consider.
This footwear and accessories retailer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.75%.
For the most recent quarter, Steven Madden was expected to post earnings of $0.42 per share, but it reported $0.45 per share instead, representing a surprise of 7.14%. For the previous quarter, the consensus estimate was $0.46 per share, while it actually produced $0.48 per share, a surprise of 4.35%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Steven Madden. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Steven Madden has an Earnings ESP of +13.68% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 30, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways PHM beat Q2 earnings and revenue estimates, though both declined from the prior year.PHM's $131 target offers modest upside as shares trade above key homebuilding valuation benchmarks.Buybacks and low leverage support PHM, but 2026 earnings and revenues are projected to fall. PulteGroup, Inc. (PHM - Free Report) gave investors a mixed second-quarter readout. Earnings and revenues topped expectations, but both fell from the prior year as closings, pricing and margins weakened.
The investment case now rests on balance. PHM offers capital returns, a solid balance sheet and modest price-target upside, but growth estimates and margins remain under pressure.
PHM Beats Estimates Despite Lower EarningsAdjusted earnings were $2.48 per share, topping the Zacks Consensus Estimate of $2.38 by 4.2%. Total revenues of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1%.
The beat did not erase the year-over-year decline. Earnings fell 18.2% from $3.03 per share, while total revenues decreased 9.6% as lower closings and softer average selling prices weighed on results.
PulteGroup’s Valuation Offers Limited UpsidePHM’s $131 price target compares with a reported share price of $124.67, leaving only modest potential appreciation. That limits the valuation argument, even though the company continues to generate orders and return capital.
The stock traded at 11.85 times forward earnings, above the sub-industry’s 10.88 multiple and PHM’s five-year median of 8.33. It still traded well below the broader construction sector and the S&P 500, keeping the valuation picture mixed rather than clearly cheap.
D.R. Horton (DHI - Free Report) and Lennar Corporation (LEN - Free Report) remain relevant comparisons because both operate as national homebuilders facing similar affordability and margin pressures. D.R. Horton describes itself as the largest U.S. homebuilder by volume, while Lennar is commonly tracked alongside DHI and PHM in homebuilding comparisons.
PHM’s Forecasts Point to a Difficult 2026Current projections call for 2026 revenues of $16.404 billion, down from $17.312 billion in 2025. Expected earnings are $10.01 per share, compared with $11.44 in 2025.
Estimates point to improvement in 2027, with revenues projected at $17.045 billion and earnings at $11.09 per share. The timing and durability of that recovery are central to whether PHM’s valuation can become more appealing.
PulteGroup Returns Capital While Funding GrowthPHM repurchased 3.1 million shares for $373 million in the second quarter. First-half repurchases totaled 5.5 million shares, or roughly 3% of outstanding shares, for $681 million.
The company maintained a quarterly dividend of 26 cents per share and had $1.8 billion remaining under its repurchase authorization. It is also funding land investment, though first-half operating cash flow fell to $176.8 million from $421.7 million as inventories increased.
PHM’s Balance Sheet Limits Financial RiskPulteGroup ended June with $1.38 billion in cash, cash equivalents and restricted cash. Its debt-to-capital ratio was 12.3%, while net debt-to-capital was 3.3%, giving the company financial flexibility in a softer housing cycle.
The land pipeline also supports flexibility. PHM controlled about 228,000 lots, with 55% held through option agreements, limiting upfront ownership exposure when demand is uncertain.
PHM’s Scores Support a Selective ApproachThe bottom line is that PHM looks more balanced than broadly attractive. The earnings beat, buybacks and balance sheet help, but declining estimates and margin compression keep the risk-reward selective.
PHM currently carries a Zacks Rank #2 (Buy), with a Value Score of B, Momentum Score of B and VGM Score of B. Those grades provide positive near-term signals, while the Growth Score of D reflects weaker projected earnings and sales trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock may suit investors focused on disciplined capital returns and balance-sheet strength. Investors prioritizing immediate growth may need clearer evidence that earnings, revenues and margins are stabilizing.
Key Takeaways PulteGroup's wider community base lifted second-quarter net new orders 6.4% to 7,536 homes.Build-to-order homes rose to 45% of orders as PulteGroup cut spec homes in production 13%.PulteGroup's gross margin fell 200 basis points to 25.0% as incentives reached 10.4% of prices. PulteGroup (PHM - Free Report) is widening its community base to support orders across first-time, move-up and active-adult buyers. That broader reach is helping offset ofter affordability conditions.
The trade-off is clear. Closings, average selling prices and margins remain under pressure, making inventory discipline central to PHM’s near-term execution.
PulteGroup’s Community Growth Supports New OrdersSecond-quarter net new orders increased 6.4% year over year to 7,536 homes. The gain came as average community count rose 8% to 1,074.
Absorption slipped 1% to 2.3 homes per community per month. That suggests community expansion, rather than stronger demand at each location, remains the main volume driver.
PHM Shifts Back Toward Build-to-Order HomesPulteGroup is moving back toward its long-term mix of 60% build-to-order homes and 40% spec homes. Build-to-order properties represented 45% of second-quarter orders, up from 40% a year earlier.
The shift is helping reduce inventory risk. Spec homes in production declined 13% to 6,638, while finished spec inventory fell to about 1.3 homes per community.
PulteGroup Reaches Multiple Buyer SegmentsPulteGroup’s second-quarter orders were balanced across buyer groups: 39% first-time, 36% move-up and 25% active adult. That mix reduces reliance on one customer category.
Orders increased across all three groups. Active-adult orders rose 12%, while first-time and move-up orders advanced 5% and 4%, respectively.
PHM Uses Geographic Scale to Manage VolatilityOrders rose in every region except the West, led by 19% growth in Florida. Demand was also favorable in several Midwest markets, Greenville and the Coastal Carolinas.
This geographic breadth gives PulteGroup room to adjust incentives, inventory and capital by local market. Peers such as D.R. Horton (DHI - Free Report) and Lennar Corporation (LEN - Free Report) face similar affordability and pricing trade-offs, making local scale an important competitive lever across the homebuilding group.
PulteGroup Faces Persistent Margin PressureHome sale gross margin declined 200 basis points year over year to 25.0%. Incentives equaled 10.4% of gross selling prices, up from 8.7% a year earlier.
Lower closings and a softer average selling price weighed on revenues, while selling, general and administrative expenses rose as a percentage of home sale revenues. Higher lot costs also remain a risk, even if lower construction costs provide some offset.
PHM’s Ratings Reflect Balanced Near-Term SignalsThe bottom line is that PulteGroup is generating orders through broader market coverage and tighter inventory control, but affordability pressure is still limiting operating leverage. The setup is resilient, not risk-free.
PHM currently carries a Zacks Rank #2 (Buy), indicating a favorable short-term earnings-revision signal. The stock also has a Value Score of B, Momentum Score of B and VGM Score of B, which support a constructive near-term profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score of D keeps the outlook mixed. Projected declines in earnings and sales suggest investors should balance PHM’s order resilience against ongoing margin and demand pressure.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Huntington Ingalls (HII - Free Report) . This company, which is in the Zacks Aerospace - Defense industry, shows potential for another earnings beat.
When looking at the last two reports, this shipbuilder has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.52%, on average, in the last two quarters.
For the most recent quarter, Huntington Ingalls was expected to post earnings of $3.7 per share, but it reported $3.79 per share instead, representing a surprise of 2.43%. For the previous quarter, the consensus estimate was $3.72 per share, while it actually produced $4.04 per share, a surprise of 8.60%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Huntington Ingalls. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Huntington Ingalls currently has an Earnings ESP of +0.53%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 30, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
IMAX Corp (NYSE:IMAX) received a price target increase from Wedbush to $54 from $46, with the firm reiterating its Outperform rating as it expects continued growth from a stronger film pipeline, market share gains and global expansion.
The analysts wrote that IMAX remains on Wedbush’s Best Ideas List as the company benefits from an increase in the volume and quality of films produced for IMAX, a broader mix of local-language and global releases, expanded alternative content offerings and further international footprint growth.
“IMAX remains on Wedbush’s Best Ideas List given our view that it is benefitting from an uptick in volume and quality of filmed-for-IMAX titles in the second half of 2026 through 2028, which is driving market share gains,” the analysts wrote.
Wedbush highlighted IMAX’s second-quarter results as evidence of the strength of its business model, noting that the company exceeded expectations despite weaker Chinese box office performance and a modest domestic share decline during a quarter with a heavier focus on family films.
“IMAX’s results demonstrated the quality of its business model that handily beat expectations despite a shortfall in its Chinese box office and a modest domestic share loss in a quarter heavier on family fare,” the analysts wrote.
IMAX reported second-quarter revenue of $103 million, up 12% year over year and above Wedbush’s and consensus estimates of $94 million. Adjusted EBITDA came in at $45 million, ahead of Wedbush’s estimate of $39 million, driven by higher installations, improved margins and operating expense leverage.
The analysts wrote that additional installations during the quarter supported results and helped ease concerns around IMAX’s ability to reach its 2026 box office target of $1.4 billion, given the strength and diversity of its upcoming release slate.
Wedbush also highlighted IMAX’s profitability outlook, writing that the company’s target of achieving EBITDA margins above 45% in 2026 and surpassing 50% by 2028 now appear conservative.
“IMAX’s 45% plus EBITDA margin target for 2026 and guidance to surpass 50% EBITDA margins by 2028 now appear conservative,” the analysts wrote.
Looking ahead, Wedbush wrote that the next phase of IMAX’s growth story will focus on improving the timing and flow of major film releases. The analysts noted that while 2026 includes several major IMAX titles, including The Odyssey and Dune 3, a crowded release schedule has limited the ability of studios and IMAX to maximize overall box office performance.
“Focus will now shift to the next leg of IMAX’s growth story: better orchestrating the flow of the annual release slate,” the analysts wrote.
Wedbush wrote that the 2027 release schedule already appears less crowded, as IMAX has become an increasingly important partner for studios across genres, languages and geographies. The analysts added that improved release timing, market share gains and international expansion provide additional opportunities for growth.
The revised $54 price target is based on a 13 times enterprise value-to-EBITDA multiple applied to Wedbush’s updated 2028 EBITDA estimate, compared with a previous 12 times multiple. It also implies upside from current levels of about $45.
Wedbush also noted potential upside if IMAX were to attract acquisition interest, writing that the company’s combination of a globally recognized premium brand, an asset-light licensing model and a structurally expanding earnings profile could make it attractive to a potential buyer.
Key Takeaways Humana is expected to post strong Q2 revenue growth driven by higher premiums and Medicare expansion.HUM's rising Insurance and CenterWell operating income support earnings beat hopes.Higher opex, weaker investment income and a rising benefits expense ratio may partially offset positives. Humana Inc. (HUM - Free Report) is set to report second-quarter 2026 results on July 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.22 per share on revenues of $40.65 billion.
The second-quarter earnings estimate has witnessed three upward revisions and no movement in the opposite direction over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 0.8%. Yet, the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 25.5%.
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For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.60 billion, implying a rise of 25.3% year over year. However, the consensus mark for current-year EPS is pegged at $9.25, implying a plunge of around 46% on a year-over-year basis.
HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
Q2 Earnings Whispers for HUMOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Humana has an Earnings ESP of +1.71% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping HUM’s Q2 Results?The Zacks Consensus Estimate for HUM’s second-quarter premiums indicates a 25.6% increase from the prior-year quarter’s reported figure, whereas our model predicts 24% growth. We expect total Medicare to witness 26.6% growth in the quarter under review. Similarly, the consensus mark for service revenues signals a 22.3% increase from a year ago, whereas our model predicts a nearly 16% jump.
Also, the Zacks Consensus Estimate for insurance membership predicts a 18.2% year-over-year growth, whereas specialty membership is expected to rise 3.7%.
The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The same for the CenterWell unit predicts a 12.8% growth from the year-ago level. The above-mentioned factors are expected to have positioned the company for an earnings beat in the second quarter.
However, the consensus estimate indicates that Humana’s investment income will see a 13.5% drop from the year-ago level. We expect total operating costs to increase 24.4% in the second quarter, bringing the figure above $38.9 billion. This is likely to have led to a year-over-year decline in the bottom line.
The consensus mark for insurance benefits expense ratio is pegged at 91.3% for the to-be-reported quarter, deteriorating from 89.9% a year ago. These are likely to have partially offset the positives.
How Did Peers Perform?Several healthcare companies, including UnitedHealth Group Incorporated (UNH - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Elevance Health, Inc. (ELV - Free Report) , have already reported their financial results for the June quarter of 2026. Here’s how they performed:
UnitedHealth reported second-quarter 2026 adjusted EPS of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Its strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in UNH’s Optum Health, Optum Rx and declining risk-based membership partially offset the positives.
Molina reported second-quarter 2026 adjusted EPS of $1.51, which beat the Zacks Consensus Estimate by 10.2%. But the bottom line declined 72.4% from the year-ago period's level. MOH’s earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.
Elevance reported second-quarter 2026 adjusted EPS of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year.The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in ELV’s overall medical membership and an elevated expense level.
The Board of Directors of ArcBest (Nasdaq: ARCB) has declared a quarterly cash dividend of twelve cents ($0.12) per share to holders of record of its Common
Key Takeaways VLY reported Q2 adjusted EPS of 30 cents, missing the 31-cent estimate.Valley National posts 13.3% y/y revenue growth as NII and non-interest income climb.VLY sees loan and deposit growth, but rising expenses and higher non-performing assets remain concerning. Valley National Bancorp's (VLY - Free Report)
second-quarter 2026 adjusted earnings per share of 30 cents missed the Zacks Consensus Estimate by a penny. However, the bottom line compared favorably with earnings of 23 cents in the year-ago quarter.
Results were hampered by higher non-interest expenses. Higher net interest income (NII), increased non-interest income, lower provisions for credit losses, and growth in loan and deposit balances acted as tailwinds.
Results excluded certain non-core charges. Including those, net income available to common shareholders was $163.6 million, which jumped 29.6% from the year-ago quarter.
Valley National’s Revenues Improve, Expenses RiseTotal revenues (on an FTE basis) were $562.1 million, up 13.3% year over year. The top line beat the Zacks Consensus Estimate of $552.02 million.
NII (FTE basis) was $488.4 million, up 12.6% year over year. The net interest margin (FTE basis) was 3.2%, which expanded 19 basis points (bps).
Non-interest income jumped 17.7% to $73.7 million. The rise was driven by an increase in almost all fee income components, except fees from loan servicing, net gains on sale of loans, and bank-owned life insurance.
Non-interest expenses of $311.1 million increased 9.5% year over year. The rise was due to an increase in almost all cost components, except for FDIC insurance assessment costs and amortization of other intangible assets. Additionally, no loss on extinguishment of debt was reported this quarter.
The efficiency ratio was 52.11%, down from 55.20% in the prior-year quarter. A decline in the efficiency ratio indicates an improvement in profitability.
VLY’s Loans & Deposits RiseAs of June 30, 2026, total loans were $52.5 billion, up 6.2% year over year. This increase was driven by growth across all loan categories. Total deposits were $54.1 billion, up 6.7% year over year.
Valley National’s Credit Quality: A Mixed BagAs of June 30, 2026, total non-performing assets were $467.8 million, up 6.4% year over year, primarily due to higher non-accrual loans, partially offset by other real estate owned (OREO), and other repossessed assets.
However, allowance for credit losses as a percentage of total loans was 1.16%, down 4 bps year over year. In the second quarter of 2026, VLY reported total provision for credit losses of $29.2 million, a 22.8% year-over-year decline.
VLY’s Profitability Improves, Capital Ratios MixedAt the end of the second quarter, adjusted annualized return on average assets was 1.05%, up from 0.87% in the year-earlier quarter. Adjusted annualized return on average shareholders’ equity was 8.75%, up from 7.15%.
As of June 30, 2026, the tangible common equity to tangible assets ratio was 8.71%, up from 8.63% in the corresponding period of 2025. Tier 1 risk-based capital ratio was 11.37%, down from 11.57%. Also, the common equity tier 1 capital ratio of 10.71% was down from 10.85% as of June 30, 2025.
Valley National’s Share Repurchase UpdateIn the reported quarter, VLY repurchased 1.5 million shares at an average price of $13.4 under its ongoing stock buyback program.
Our Take on VLYRobust loan growth, stabilizing funding costs, and efforts to enhance fee income are expected to keep supporting Valley National’s top-line growth. However, elevated expenses and significant exposure to commercial real estate loans remain near-term headwinds.
Valley National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of VLY’s PeersHancock Whitney Corp.’s (HWC - Free Report) second-quarter 2026 earnings per share of $1.55 matched the Zacks Consensus Estimate. The bottom line rose 17.4% from the year-ago quarter.
HWC’s results were primarily aided by higher NII and non-interest income along with a decline in provisions. Also, a sequential increase in loans and deposit balances was positive. However, higher expenses were the undermining factor.
BankUnited, Inc.’s(BKU - Free Report) second-quarter 2026 earnings of 97 cents per share missed the Zacks Consensus Estimate of $1.02. However, the bottom line rose 6.6% from the prior-year quarter.
Results were primarily hurt by a rise in non-interest expenses. Also, sequential declines in loans and deposits were negatives. However, higher NII and fee income, along with lower provisions, provided some support to BKU’s performance.
Key Takeaways Regency Centers is expected to post higher Q2 revenues and FFO per share year over year.REG may benefit from strong leasing, resilient foot traffic and demand for grocery-anchored retail.Regency Centers maintained NOI growth guidance despite expecting softer Q2 same-property NOI growth. Regency Centers Corp. (REG - Free Report) is slated to report second-quarter 2026 results on July 29, after the closing bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust’s (REIT) NAREIT FFO per share of $1.20 missed the Zacks Consensus Estimate of $1.21. Results reflected a year-over-year improvement in same-property NOI driven by strong leasing.
Over the trailing four quarters, the company’s FFO per share exceeded the Zacks Consensus Estimate on two occasions and met on the other two, with the average beat being 0.69%. This is depicted in the graph below:
In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance.
US Retail Real Estate Market in Q2The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed.
Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory.
Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Even so, rents in the South advanced 3.3% year over year, the strongest growth among all regions.
Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4% excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories.
Factors at Play for RegencyConsidering the above scenario, Regency Centers’ second-quarter 2026 performance is likely to have benefited from its grocery-anchored portfolio, resilient foot traffic and strong tenant demand. First-quarter foot traffic rose 2.3% and accelerated to 3% in April, while bad debt remained near record lows. Demand from grocers, restaurants, health and wellness concepts, and off-price retailers is likely to have supported occupancy, rents and leasing spreads.
Regency’s more than $600 million development and redevelopment pipeline, carrying blended returns above 9%, may have boosted total NOI growth. The company maintained full-year same-property NOI growth guidance of 3.25%-3.75% and total NOI growth above 6%, backed by project deliveries, prior acquisitions and a strong balance sheet. However, management expected second-quarter same-property NOI growth to fall below the full-year range because of a tougher expense comparison.
The Zacks Consensus Estimate for REG’s second-quarter revenues is pegged at $404.99 million, indicating a 6.3% increase from the year-ago quarter.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The consensus mark for quarterly FFO per share has remained unchanged at $1.20 over the past three months. The figure implies growth of 3.45% from the prior-year quarter’s reported number.
What Our Quantitative Model Predicts for RegencyOur proven model predicts a surprise in terms of FFO per share for Regency this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Regency currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two other stocks from the retail REIT sector — Kimco Realty (KIM - Free Report) and Simon Property Group (SPG - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Kimco Realty, slated to release quarterly numbers on Aug. 4, has an Earnings ESP of +0.63% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
New class action for AeroVironment (AVAV) urges investors to seek recovery for alleged securities fraud violations – lead plaintiff deadline of 7/27/2026
