Dolby Laboratories (DLB 0.78%) stock tumbled 9.8% through 9:45 a.m. ET Friday despite beating on top and bottom lines in its fiscal Q2 2026 earnings report last night.
Heading into the report, analysts forecast the audio tech powerhouse would earn $1.33 per share on quarterly sales of $385.8 million. In fact, Dolby earned $1.37 per share, pro forma, on $396 million in sales.
Image source: Getty Images.
Dolby Q2 earnings The news wasn't quite as good as that makes it sound -- actual earnings per share, as calculated under generally accepted accounting principles (GAAP), were only $0.99, and the "$1.37" figure was non-GAAP. But even so, Dolby beat expectations, growing sales 8% year over year and earnings 5% year over year.
The news certainly could have been worse.
Unfortunately, the news on guidance was worse.
Today's Change
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-0.78
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-0.41
Current Price
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52.32
What's next for Dolby stock A lot worse.
Dolby wrapped up its earnings report with a warning that non-GAAP profit will be only about $0.63 per share in Q3 (which is already underway) -- about a third less than the $0.98 per share Wall Street was anticipating. Full-year earnings could still hit the mark, with Dolby forecasting total 2026 non-GAAP profit between $4.30 and $4.45 per share, slightly ahead of Wall Street estimates.
Still, when measured under GAAP, Dolby expects to earn no more than $0.34 per share in Q3 and no more than $2.81 per share for the year. That's a steep sequential decline for the quarter, and for the year, it values Dolby stock at least 20 times earnings -- and possibly even higher.
For a stock growing sales and earnings only in the mid-single digits, that sounds like too high a price to pay.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dolby Laboratories. The Motley Fool has a disclosure policy.
Dolby Labs is rated a 'BUY' with a conservative $80/share price target, reflecting 17–25% annualized upside potential through 2028. DLB trades at a rare sub-15x P/E, supported by robust patent-driven recurring revenue, high margins, and a net cash balance exceeding $500M. Despite cyclical end-market exposure and recent earnings volatility, DLB's technology leadership and dominant licensing position underpin long-term revenue security.
SAN FRANCISCO, May 19, 2026 /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE:DLB) today announced that management will present at the following investor conferences: Kevin Yeaman, President and CEO, will host a presentation at the William Blair 46th Annual Growth Stock Conference in Chicago, Illinois on Wednesday, June 3, 2026, at 10:00 AM CT (11:00 AM ET). Robert Park, Senior Vice President and Chief Financial Officer, will host a presentation at the Baird Global Consumer, Technology and Services Conference in New York, New York on Thursday, June 4, 2026 at 9:40 AM ET.
SAN FRANCISCO, May 20, 2026 /PRNewswire/ -- Dolby Laboratories (NYSE: DLB), a leader in immersive entertainment, has earned two of the automotive industry's most prestigious supplier honors from General Motors: the 2025 Supplier of the Year and the Overdrive Award — GM's highest supplier recognition. It marks the first time Dolby has received either distinction, a milestone that reflects the company's leadership in redefining the in-car entertainment experience through innovations like Dolby Atmos.
/PRNewswire/ -- Dolby Laboratories (NYSE: DLB), a leader in immersive entertainment, and rednote, the leading lifestyle interest community, today announced
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The Zacks Audio Video Production industry is facing quite a few challenges. Hardware demand remains cyclical and sensitive to consumer spending. Global macroeconomic uncertainty amid escalating trade tensions, tariffs and associated inflationary pressure is likely to keep consumer spending in check. This does not bode well for the participants. A highly promotional environment and stiff competition from importers of comparatively low-priced devices are denting margins. Online accessibility of recording equipment and the availability of distribution channels on the Internet are additional headwinds.
Nonetheless, participants like Sony Group Corporation (SONY - Free Report) , Dolby Laboratories, Inc. (DLB - Free Report) , and Sonos Inc. (SONO - Free Report) are likely to benefit from investments in cutting-edge technology solutions that drive enhanced communication experiences. The industry is moving into a phase that is marked by the convergence of content creation, immersive media (spatial audio, AR/VR and 3D video) and AI-driven workflows. Streaming, creator content, gaming, spatial audio and AI-powered tools are reimagining value creation across the industry. Rapid technological advances, such as 4K, 8K and immersive audio formats, are boosting the demand for new devices, which bodes well for participants like Dolby. The players also stand to gain as they increase focus on direct-to-customer sales channels.
Industry Description The Zacks Audio Video Production industry comprises television, speaker, video player and camcorder manufacturers. It includes companies that offer gaming consoles, drones and high-end cameras for individuals and industrial markets. These firms provide state-of-the-art audio, imaging and voice technologies that enhance entertainment and communication experiences. Some industry participants develop audio and imaging products, including digital cinema servers and products for film production and entertainment industries. Apart from providing theatrical and television production services for cinema exhibitions, broadcast and home entertainment, these companies work with film studios, content creators, broadcasters and video game designers. Some prominent players are present in the music and image-based software markets worldwide.
4 Trends Shaping the Future of the Audio-Video Production Industry Technological Advancement to Spur Growth: From rapid technological advances like 4K, 8K and immersive audio formats, the demand for high-resolution visual and audio experiences is a major growth driver. The rise of streaming or OTT platforms is fueling this trend, as consumers and businesses seek to recreate a cinematic atmosphere at home. Gaming is another catalyst, as PC and console gamers now seek enhanced visuals and immersive sound design. The rise of the creator economy is also fueling the demand for enhanced cameras and editing tools. Industry players like GoPro are benefiting from this trend, as its cameras are popular among creators. Automotive audio represents another lucrative opportunity as vehicles become more software-driven and experience-focused.
Increasing Demand for Premium Entertainment: The industry performed well despite drastic changes in how media is consumed and distributed. The rise in demand for premium entertainment from record labels, TV producers and advertisers is likely to stoke profitable growth. Strong demand across all regions with a more direct-to-consumer, subscription-centric model bodes well for industry participants.
Macroeconomic Headwinds Likely to Hurt Consumer Demand: The global macroeconomic uncertainty amid escalating trade tensions and tariffs, and associated inflationary pressures, is likely to keep consumer spending, especially discretionary purchases, in check. While companies keep investing in market share gains and supply-chain resilience, a shortage of critical hardware components due to the disruption in the supply chain could hurt revenues in the near term. Fluctuations in commodity pricing for different components are additional concerns. Elevated promotional activity to boost sales amid weak spending is also affecting the performance of these industry participants.
Aggressive Competition: In the United States, smart-connected televisions, microphones and speaker enclosures are the most popular electronic devices among customers. However, U.S.-based manufacturers of audio and video systems face intense competition from importers of comparatively low-priced devices, particularly from China, Vietnam and Mexico. These firms face stiff competition across all end markets, often leading to intense price wars and margin contraction.
Zacks Industry Rank Indicates Bleak Prospects The Zacks Audio Video Production industry is housed within the broader Zacks Consumer Discretionary sector. It currently has a Zacks Industry Rank of #177, placing it in the bottom 28% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than two to one.
Before we present a few audio-video production stocks you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry Lags the Sector & the S&P 500 The Zacks Audio Video Production industry lags the broader Zacks Consumer Discretionary sector and the S&P 500 composite in the past year.
The industry has lost 14.8% over this period against the S&P 500’s 26.6% return. The broader sector has edged down 12.7% over the same timeframe.
One-Year Price Performance
Industry's Current Valuation Price-to-earnings is commonly used for valuing audio-video production stocks. The industry has a forward 12-month P/E of 16.45X compared with the S&P 500’s 21.43X. It is below the sector’s forward 12-month P/E of 16.8X.
In the past five years, the industry has traded as high as 23.92X and as low as 15.43X, with a median of 19.95X, as the chart below shows.
Price-to-Earnings Forward Ratio (Past Five Years)
3 Audio Video Production Stocks to Watch Sony Group Corporation: The Japan-based conglomerate designs, manufactures, and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors.
Strategic focus on entertainment and intellectual property continues to support Sony’s long-term growth strategy. Sony continues to expand its ecosystem through PlayStation, Crunchyroll, Music and Pictures while leveraging cross-platform collaborations. Crunchyroll surpassed 21 million paid subscribers by March 2026 and now offers more than 50,000 episodes in multiple languages.
Sony’s G&NS segment continues to benefit from higher user engagement and recurring digital revenues despite softer hardware demand. Monthly active users on PlayStation reached 125 million in March 2026, while total gameplay time increased year over year. Fiscal 2025 G&NS operating income increased 12% to ¥463.3 billion despite large Bungie-related impairment charges. Growth in network services, third-party software sales and favorable forex dynamics supported profitability. For fiscal 2026, Sony expects segment operating income to rise further to ¥600 billion as it focuses on long-term user monetization and service expansion.
Sony faces intense competition in each of its product lines, including television, gaming platform and smartphone, around the world. Tariff uncertainty, weak hardware demand and execution risks in newer investments could continue limiting the company’s upside potential in the near term.
At present, SONY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal 2026 bottom line is pegged at $1.28 per share, down 2 cents in the past seven days. Shares have plunged 17.8% in the past year.
Price & Consensus: SONY
Dolby: San Francisco-based Dolby develops audio and imaging technologies that revolutionize entertainment for user-generated content, TV shows, films, music and gaming. Dolby continues to see strong engagement across its ecosystem of creators, distributors and device OEMs for its Dolby Atmos and Dolby Vision technologies. For fiscal 2026, management continues to expect Dolby Atmos, Dolby Vision and imaging patents to grow about 15% and represent nearly half of licensing revenues.
Dolby is extending its presence in the automotive market, driven by strong demand from OEMs to elevate in-car entertainment quality. It also previously announced a collaboration with Qualcomm to integrate Dolby Atmos and Dolby Vision into the latter’s Gen 5 Snapdragon Automotive platform. Integrations like these are aimed at expanding its footprint into the auto ecosystem.
Dolby is also building new revenue streams. The video distribution program, a patent licensing pool for imaging patents for content streamers, continues to gain traction with 40 licensors onboarded. At the same time, Dolby OptiView represents an emerging opportunity in personalized sports streaming, with early customer wins such as Genius Sports and William Hill.
Dolby maintained its full-year fiscal 2026 guidance, indicating stable business trends. The company expects total revenues in the range of $1.4 billion to $1.45 billion.
However, Dolby expects the PC segment to decline, primarily due to lower unit sales in the broader PC market. Macroeconomic uncertainties, including inflation, changes in consumer spending, volatility in memory pricing, and broader supply chain dynamics, remain concerns.
At present, DLB carries a Zacks Rank #3.The Zacks Consensus Estimate for its fiscal 2026 bottom line is pegged at $4.31 per share, unchanged in the past seven days. Shares have plunged 28.1% in the past year.
Price & Consensus: DLB
Sonos: Headquartered in Santa Barbara, CA, Sonos operates as a consumer electronics company that is primarily involved in the manufacturing of speakers with immersive sound experiences.Product innovation is reaccelerating after a deliberate pause, with launches in the pipeline for the second half of fiscal 2026. The company is benefiting from a strong product pipeline, including new launches such as Sonos Play and Era 100 SL, which are designed both to attract new customers and deepen engagement within its existing installed base. The company is also planning Amp Multi for the professional installer channel later in fiscal 2026 and describes an active pipeline across both hardware and software.
Sonos is also refining its go-to-market strategy while expanding geographically to tap underpenetrated international markets. In the fiscal second quarter, APAC revenue grew 25% year over year, EMEA jumped 21% and the Americas grew 2%.
Management guided third-quarter fiscal 2026 revenues of $355 million to $375 million and adjusted EBITDA of $20 million to $48 million, reinforcing its view that the second half will be stronger than the first.
Management has called out higher memory costs as a cause for gross margin risk as the industry shifts supply toward newer memory standards. In the fiscal second quarter, higher memory costs were about a 200-basis-point drag on gross margin. Management expects roughly a 400-basis-point year-over-year drag in its third-quarter fiscal 2026 gross margin outlook. It expects second-half gross margin to run below the prior year level, even as it pursues mitigation actions.
At present, SONO carries a Zacks Rank #3. The Zacks Consensus Estimate for its fiscal 2026 bottom line is pegged at $1.20 per share, unchanged in the past 30 days. The company’s shares have gained 52.6% in the past year.
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After the market closed tonight, Fluence Energy (NASDAQ: FLNC) dropped its fiscal Q2 2026 results, and the earnings report is a study in contrasts. Revenue badly missed, but the bottom line beat, backlog hit a record, and the company landed master supply agreements with two hyperscalers. Shares had already closed up 6.86% at $13.56 before the release.
They’re up another 27% in after-hours trading. Let’s dive into why Fluence shares are soaring even after the company badly missed revenue targets last quarter.
Hyperscalers Walk Through the Door Fluence is a leading company providing ‘intelligent energy storage.’ As many data centers go ‘behind the meter’ for their power needs, demand for battery storage systems is booming. Fluence shares soared throughout 2025 on optimism sales would boom amidst the AI buildout, but plummeted after the company reported earnings in February and issued disappointing guidance.
Yet, the inflection point investors have been hoping for may have begun tonight, even if last quarter was disappointing.
Backlog tells the same story. Total backlog hit a record $5.6 billion as of March 31, 2026, and YTD order intake doubled to roughly $2.0 billion. The energy storage pipeline expanded to 41.3 GW (up 16%) and 147.0 GWh (up 20%). Add the first Smartstack delivery reaching substantial completion and affirmed access to U.S. domestic content, and the commercial momentum is looking strong.
The Revenue Whiff Revenue of $464.89 million missed consensus of $622.31 million by 25.3%, even though it grew 7.7% year over year.
Most stocks with a miss this size would see shares absolutely crash the next day. Yet, investors knew Fluence’s near-term would be disappointing. The stock already crashed during its last report thanks to disappointing guidance. They’re willing to overlook results from last quarter and are instead focused on the master supply agreements with two hyperscalers, backlog growth, and order intake numbers reported this quarter.
Margins Quietly Climb Key figures from the quarter:
Diluted EPS: -$0.16 (vs. -$0.18 expected); beat by 11.41% Revenue: $464.89M (vs. $622.31M expected); up 7.7% YoY Adjusted EBITDA: -$9.44M (vs. -$30.41M YoY) Net Loss: $29.2M (narrowed from $41.9M) GAAP Gross Margin: 10.0% (vs. 9.9% YoY); adjusted 11.1% (vs. 10.4%) Liquidity: ~$900M As you can see, results are improving despite the company missing Wall Street’s expected revenue figures. Adjusted EBITDA is improving, and losses are narrowing. Wall Street expects revenue to jump from $3.36 billion this year up to more than $4 billion in Fiscal 2027.
CEO Leans Into the Pipeline CEO Julian Nebreda said the company is “beginning to see the benefit of our pipeline growth with an acceleration of orders over the past few months and backlog reaching another record level.” On the hyperscaler wins, he added that “our customer expansion strategy is gaining momentum” and that the first order should convert soon. Tone: confident, with execution as the proof point.
Watch Tomorrow Morning’s Conference Call Fluence’s conference call doesn’t start until tomorrow at 8:30 a.m. With investors mostly focused on announcements around their hyperscaler master supply agreements, I’d expect no shortage of questions from Wall Street trying to pry at the nature of these agreements. If Fluence’s management team projects a lot of confidence, today’s earnings could be the beginning of a rebound that sends Fluence shares back to where they traded before their February crash.
Fluence Energy, Inc. (FLNC - Free Report) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.71%. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced a loss of $0.34, delivering a surprise of -88.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Fluence Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $424.73 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 28.5%. This compares to year-ago revenues of $431.62 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Fluence Energy shares have lost about 35.8% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Fluence Energy?While Fluence Energy has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Fluence Energy was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $1.08 billion in revenues for the coming quarter and -$0.22 on $3.4 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
XPLR Infrastructure (XIFR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This limited partnership for clean-energy projects is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -155.6%. The consensus EPS estimate for the quarter has been revised 27.3% higher over the last 30 days to the current level.
XPLR Infrastructure's revenues are expected to be $264.35 million, down 6.3% from the year-ago quarter.
While the top- and bottom-line numbers for Fluence Energy (FLNC) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Three NASDAQ names are rocketing higher on Thursday, May 7, in moves that stand out even in a strong tape. Himax Technologies (NASDAQ:HIMX) stock is up 45% intraday to $17.88, Fluence Energy (NASDAQ:FLNC) stock is up 33% to around $18, and Datadog (NASDAQ:DDOG | DDOG Price Prediction) stock is up roughly 30% to $186.50.
That’s three different industries (semiconductors, energy storage, and cloud software) all delivering the kind of single-session rallies investors usually see one at a time. The macro backdrop is constructive: the S&P 500 ETF SPY has climbed 11% over the past month, and the VIX sits at 17.39, comfortably inside of its normal range. For more context on recent market action, see our latest market movers coverage.
Yet, macro tailwinds alone don’t produce 30%-plus prints in multiple large, liquid names. Each of these stocks has its own catalyst, and all three landed on the same morning.
Himax Earnings Beat Sparks Parabolic Move Himax Technologies posted its Q1 2026 results before the bell, with revenue of $199.01 million topping the $195.01 million consensus and EPS of $0.046 against a $0.03 estimate. Gross margin landed at 30%, at the high end of company guidance.
Inside the quarter, large display driver ICs at Himax jumped 12% sequentially to $24.2 million on high-end TV restocking, and operating margin expanded to 5% from 3% a quarter earlier. The board also declared an annual dividend of $0.252 per ADS.
The bigger driver is forward guidance. Himax sees Q2 revenue rising 10% to 13% sequentially with gross margin near 32%, and CEO Jordan Wu pointed to automotive mass-production ramps in the second half plus traction in smart glasses, ultralow power AI and co-packaged optics (CPO).
The risk is that Himax remains a small cap with cyclical end markets, and revenue was still down 8% year over year. A 45% one-day print can produce sharp follow-through volatility in either direction.
Fluence Energy Rebounds on Record Backlog Fluence Energy reported after Wednesday’s close. Q2 FY26 revenue of $464.89 million missed the $622.31 million consensus, but EPS of -$0.16 beat the -$0.18 estimate, and management reaffirmed FY26 revenue guidance of $3.2 billion to $3.6 billion.
The bullish read on Fluence is the order book. Year-to-date order intake doubled to roughly $2 billion, backlog reached a record $5.6 billion, and the company signed master supply agreements with two hyperscalers, with a first order expected in Q3 FY26. Adjusted EBITDA also improved to -$9.44 million from -$30.41 million a year earlier.
Today’s rally still leaves Fluence Energy stock down 11% year to date. The recovery narrative depends on hyperscaler-driven demand showing up in shipped revenue, and the headline top-line miss is a reminder that quarterly execution remains lumpy.
Datadog Raises FY26 Guidance Datadog delivered Q1 2026 revenue of $1.01 billion, up 32% year over year, with non-GAAP EPS of $0.60 against a $0.51 consensus. It marks the company’s fourth consecutive quarterly beat.
The catalyst is the raised outlook. Datadog now expects FY26 revenue of $4.3 billion to $4.34 billion and non-GAAP EPS of $2.36 to $2.44, with $100K-plus annual recurring revenue (ARR) customer count up 21% to roughly 4,550. CEO Olivier Pomel stated the company is “helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions.”
Datadog also pushed MCP Server, Bits AI Security Analyst, and GPU Monitoring to general availability during the quarter. Free cash flow reached $289 million, and GAAP operating income swung to a $7.33 million profit from a year-earlier loss.
The pushback for Datadog is valuation. The stock trades at a premium cloud-software multiple, and a 30% gap up compresses forward returns while amplifying any future earnings disappointment.
What to Watch The shared thread is AI demand. Himax is leaning into co-packaged optics and smart glasses, Fluence is selling utility-scale storage into hyperscaler power footprints, and Datadog is monetizing AI workload observability through GPU monitoring and Bits AI. Three different sectors, one underlying buyer.
Single-day moves of this size tend to be followed by elevated volatility as fast money rotates and longer-term holders reset positions. Watch for whether the HIMX, FLNC, and DDOG rallies hold into the close, whether sell-side analysts raise targets within 24 hours, and whether peer names in display drivers, energy storage, and observability software trade in sympathy.
For prudent investors eyeing HIMX, FLNC, or DDOG stock, the key question is durability. The earnings reports and guidance raises are real, but chasing 30%-plus daily prints rarely rewards entry timing, and position sizing matters more than ever after a move like this. The next directional cue arrives with analyst notes overnight and the first full trading session after digestion on Friday.
ARLINGTON, Va. , May 12, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. ("Fluence") (NASDAQ: FLNC), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced the commencement of an underwritten public offering of an aggregate of 20,000,000 shares of its Class A common stock by certain controlling stockholders of Fluence.
ARLINGTON, Va., May 13, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence”) (NASDAQ: FLNC), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, announced today the pricing of an underwritten public offering of an aggregate of 20,000,000 shares of its Class A common stock by certain controlling stockholders of Fluence at a public offering price of $21.00 per share. The selling stockholders have also granted the underwriters a 30-day option to purchase an additional 3,000,000 shares of Class A common stock on the same terms and conditions. Fluence is not selling any of its shares of Class A common stock in the offering and will not receive any of the proceeds from the sale of shares by the existing stockholders. The offering is 100% secondary with the respective selling stockholders receiving the proceeds. The offering is expected to close on May 15, 2026, subject to the satisfaction of customary closing conditions.
The AI buildout is colliding with a power supply problem, and capital is rotating into companies that can solve it. Fluence Energy (NASDAQ:FLNC) just illustrated the appetite: shares closed at $24.16 on May 8, 2026, up 98.2% in a single week after the company disclosed master supply agreements with two hyperscalers and a record $5.6 billion backlog. That run took FLNC out of bargain territory, but four peers in grid software, baseload generation, and nuclear fuel still trade under $20.
Four AI-exposure energy names under $20 worth considering: STEM, AXIA Energia, Uranium Energy, and Babcock & Wilcox.
STEM (NYSE:STEM) STEM (NYSE:STEM) is an AI-enabled clean energy software company managing utility-scale storage and solar through its PowerTrack platform. Shares are down roughly 39% year to date, leaving this micro-cap in turnaround territory. Q1 2026 delivered positive adjusted EBITDA of $2.0 million, the fourth consecutive quarter in the black, with non-GAAP gross margin expanding to 52%. CEO Arun Narayanan said “the operational discipline and margin profile we established in 2025 are proving durable.” PowerTrack manages 37.5 GW of solar AUM with ARR guided to $65 million to $70 million by year-end. The risk is balance-sheet stress: stockholders’ equity of -$265.88 million and cash of just $36.59 million. The EBITDA inflection is the key variable to track, balanced against balance-sheet volatility.
AXIA Energia (NYSE:AXIA) AXIA Energia (NYSE:AXIA), the rebranded former Eletrobras, is Brazil’s largest electric utility with a 100% renewable generation portfolio of 43,872 MW. Shares trade at $11.99, up 30.9% year to date and 112.39% over one year. Trailing PE is 13x, with three buy ratings and a $13.70 analyst target. Q1 2026 delivered IFRS net revenue of R$12.71 billion (+22.1%) and adjusted regulatory EBITDA of R$8.60 billion (+60%), swinging to a R$3.71 billion profit from a year-ago loss. AXIA is positioning baseload renewable capacity for Brazilian data center growth, with R$12 to R$14 billion in annual investments planned through 2027. The risk: R$46 billion of net debt at 1.8x LTM EBITDA and uncontracted energy exposure of 26% to 43% in 2027. AXIA pairs utility-style valuations with exposure to a global AI-power story.
Uranium Energy (NYSE:UEC) Uranium Energy (NYSE:UEC) holds the largest U.S. uranium resource base and brought Burke Hollow online in April 2026, the first new U.S. ISR uranium mine in over a decade. Shares closed at $15.16, up 29.79% year to date and 171.68% over one year. The balance sheet shows $818 million in liquid assets and zero debt. Analyst consensus is Moderate Buy with a $19.17 average target. CEO Amir Adnani said the company is “uniquely positioned to scale production and respond quickly to evolving U.S. policy initiatives.” Nuclear is the cleanest baseload option for AI data centers, uranium was added to the USGS Critical Minerals List in November 2025, and a Section 232 status report is due July 13, 2026. The risk: an unhedged sales strategy exposes UEC to spot price swings, and the company is not yet profitable. UEC offers concentrated exposure to AI’s nuclear baseload thesis.
Babcock & Wilcox (NYSE:BW) Babcock & Wilcox (NYSE:BW) makes industrial power generation equipment and is pivoting into AI data center baseload. Shares closed at $14.54, up 129.34% year to date. The headline is a $2.4 billion design-build contract with Base Electron for 1.2 GW of natural gas-fired power, which drove backlog up 470% to $2.8 billion. Management guided 2026 core adjusted EBITDA to $70 million to $85 million, roughly 80% YoY growth, excluding any data center upside. CEO Kenneth Young, CFO Cameron Frymyer, and the General Counsel all bought stock in March 2026, with Young acquiring 250,000 shares at $10.51. Base Electron is evaluating another 1.2 GW option, and the global pipeline exceeds $12 billion. The risk is the legacy balance sheet, including stockholders’ equity of -$131.5 million and a 6.50% note refinancing due 2026. The cluster of insider buying signals management conviction in the AI pivot.
Trading under $20 is not by itself a reason to buy. Each carries real balance-sheet, execution, or regulatory risk that the AI narrative does not erase. Investors should pair this list with their own due diligence, position sizing, and risk tolerance before acting.
Fluence Energy earns a Strong Buy rating, driven by its evolution into an AI infrastructure leader with proprietary sub-100ms power-conditioning technology and major hyperscaler supply agreements. FLNC's de-risked domestic supply chain and regulatory moat (OBBBA/PFE shield) protect double-digit gross margins from Asian competition and deflationary battery pricing. A $57 million IEEPA tariff refund, a 12 GW hyperscaler pipeline, and a coiled-spring H2-FY2026 revenue ramp (~$2.5B expected) set up a sharp swing to positive FCF.
Industrial companies form the backbone of the U.S. economy. That's even more true as the U.S. ramps up data center construction. The artificial intelligence (AI) revolution is driving a massive demand for infrastructure and energy, making this sector more important than ever.
In addition to the AI-driven growth, the U.S. government is encouraging greater investment in domestic manufacturing, seeking to reduce reliance on foreign energy sources. It's also significantly increasing defense and aerospace spending, providing a powerful backdrop for industrial operators.
If you're a long-term investor looking to capitalize on these strong tailwinds, three industrial stocks stand out today: GE Vernova (GEV +3.00%), BWX Technologies (BWXT +1.46%), and Fluence Energy (FLNC +3.93%). Here's why.
Image source: Getty Images.
1. Robust demand for energy from data centers has been a powerful tailwind for GE Vernova When it comes to powering the next generation of AI data centers, GE Vernova is emerging as a massive winner. The company spun off from General Electric (now GE Aerospace) in 2024, and it specializes in designing, manufacturing, and servicing energy solutions for power, grid reliability, and renewable energy. As a global leader in electric power infrastructure, its technology provides roughly 25% of the world's electricity.
GE Vernova benefits massively from the growing demand from hyperscalers for its power solutions, notably its gas turbines. These are particularly appealing to data center operators because they allow them to bring their own power and avoid straining the power grid, which is becoming a more contentious issue as more data centers go online and consumers' power bills rise.
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GE Vernova's backlog exceeds $163 billion across its power and electrification segments, and its gas turbine queue is over 100 gigawatts (GW). Its backlog represents long-term contracts and reservation agreements, and its capacity is sold out for years as hyperscalers pay an up-front premium to reserve slots years in advance.
One caution for GE Vernova is that its valuation is elevated. The stock has surged 126% over the past year and is priced at 35.5 times its projected 2026 earnings per share (EPS) of $29.21. The high valuation exposes it to volatility but also reflects strong growth prospects. Analysts covering the company project EPS could surge to $44.49 by 2029, representing a four-year compound annual growth rate of 25%.
The stock isn't cheap, but the company continues to see robust demand for its products well into the future. Its gas turbine business is crushing it, and the company also has a longer-term upside from its development of small modular nuclear reactors. As AI data centers continue to grow, GE Vernova is a stock that can ride this wave higher.
2. Growing support for nuclear energy provides a strong backdrop for BWX Technologies Nuclear is one source of energy that could help meet the growing demand for electricity with no carbon emissions. Nuclear energy is regaining favor, and the U.S. aims to aggressively quadruple its nuclear capacity by 2050. An expansion this large would require massive investment and a huge build-out of nuclear energy infrastructure and its components.
That's where BWX Technologies has its growth opportunity. The company doesn't mine uranium or own nuclear power plants. But it does provide specialized, complex, high-precision equipment used in nuclear reactors, including steam generators, reactor pressure vessels, and piping.
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While the nuclear energy build-out provides upside for BWX, the company also generates a steady revenue stream from its role as the sole nuclear fuel provider to the U.S. Navy. For over 70 years, the company, through its subsidiary Nuclear Fuel Services, has been the exclusive supplier for Navy aircraft carriers and submarines. Because of the complexity and sensitivity of military-grade reactor cores, it's difficult to knock BWX off its perch, giving the company a robust competitive advantage.
BWX Technologies has a resilient backlog that will provide cash flow for years to come. The company is also expanding into the small modular reactor (SMR) market, uranium enrichment, and medical isotopes, providing multiple avenues for growth. For investors bullish on the future nuclear energy expansion, BWX Technologies is another excellent industrial stock to own today.
3. Demand from data centers for reliable energy should give Fluence Energy a boost Building on the theme of data center power demands, Fluence Energy operates at the intersection of renewable energy and reliable power solutions. The company provides grid-scale energy storage solutions (batteries) that help stabilize the electric grid and ensure reliable energy flow alongside intermittent wind and solar energy.
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Investors have viewed Fluence as a utility-scale clean energy provider, but it is increasingly seen as a solutions provider for hyperscalers facing grid capacity bottlenecks. To meet this demand, Fluence is developing dedicated battery systems to help keep data centers online and will earn revenue through a mix of product sales from its energy solutions and service fees for managing, maintaining, and supporting its batteries over the long term.
The company has consistently lost money since its 2021 initial public offering (IPO), but that could change with the surging demand from hyperscalers. The company's total order backlog is a record $5.6 billion, and earlier this month, it secured master supply agreements with two hyperscalers. With momentum building for its energy solutions, Fluence Energy is another industrial energy stock to own as it benefits from AI tailwinds going forward.
Munich-headquartered Siemens says its had developed a DSX Vera Rubin-aligned reference design in collaboration with Nvidia (NVDA) and Fluence Energy FLNC.
The firm’s announcement of a deployable, industrialized electrical, power, and control architecture purpose-built for hyperscalers, colocation providers, and specialized cloud infrastructure operators sent FLNC up some 40% on June 1st.
Despite its meteoric run this morning, Fluence Energy stock remains a muted investment for 2026, still down roughly 18% versus its year-to-date high.
Disciplined investors should treat the massive surge in FLNC shares today as an opportunity to cut exposure rather than initiating a new position.
Why? For starters, the Siemens/Nvidia announcement is a “reference architecture” – a blueprint of what data centers could look like – not a firm purchase order or exclusive supply deal.
In other words, markets may price in revenue that isn’t yet contracted.
Importantly, in this partnership, Fluence isn’t even the star of the show – Siemens and Nvidia are. FLNC’s role is just battery storage within a broader system.
If hyperscalers adopt the reference design selectively – taking Siemens’ electrical architecture but sourcing storage elsewhere – Fluence’s actual revenue uplift could be rather limited.
Caution is warranted in playing Fluence Energy shares at current levels also because the company missed topline expectations in its fiscal Q2, with the filing highlighting international exposure to tariffs, shifting commodity costs, and logistics headaches.
The Nasdaq-listed firm concluded its latest reported quarter with nearly $465 million in revenue, significantly below the $622 million that analysts had called for.
FLNC’s strong backlog and reaffirmed full-year guidance (2026) are prominent talking points, but a backlog is only as good as its conversion rate – and the company’s revenue miss shows execution risk remains real.
Simply put, the backlog isn’t new revenue yet, and that’s concerning given Fluence Energy Inc is currently trading at a rather stretched 9x price-to-book (P/B) ratio.
Investors must also note the high short interest as a potential catalyst, meaning today’s spike in the FLNC stock may partly be a short squeeze rather than a fundamental re-rating.
Even from a technical perspective, the battery storage specialist isn’t particularly attractive – given the firm’s relative strength index (RSI) now sits near 70, indicating it’s approaching “overbought” conditions that often trigger a pullback.
And it’s not like Fluence Energy pays a healthy dividend to incentivize ownership despite the above-mentioned risks. Crucially, Wall Street analysts also view the rally as “overdone”.
Consensus rating on the Nasdaq-listed firm sits at “hold” only, with the mean price target of about $18.47 signaling potential downside of more than 30% from the current price over the next 12 months.
Listen to the audio version of this article (generated by AI).
In 1945, an engineer named Percy Spencer was tinkering with a radar magnetron, a device built to spot enemy aircraft, when the chocolate bar in his pocket turned to mush. Most people would have cursed the dry-cleaning bill. Spencer saw a fortune. Within a few years, that same wartime component was humming on kitchen counters as the microwave oven.
Here’s the thing about markets: the biggest money often gets made when a technology built for one war gets drafted into another. The hardware was already there. It just needed a new battlefield. I’m watching that exact pattern play out across the AI infrastructure buildout right now, and it’s minting winners faster than most investors can update their watchlists.
The catch? For every honest reinvention story that runs, there’s a hype trade wearing the same costume. Telling them apart is the whole game. This week on Being Exponential, we walked through five stocks that show you both sides of that coin. Four I really like. One I wouldn’t touch with your money, let alone mine.
There’s Marvell Technology Inc. (MRVL), which we see carving a genuine path toward a $1 trillion valuation as custom silicon and connectivity become the twin bottlenecks of the AI buildout. There’s Dell Technologies Inc. (DELL), still filed under boring PC maker, whose AI server revenue grew 757% year over year on $24.4 billion in fresh orders and a $51.3 billion backlog. There’s Fluence Energy Inc. (FLNC), a left-for-dead battery story now growing 48% as its storage technology finds new life inside power-starved data centers. And there’s Redcat Holdings Inc. (RCAT), a tiny drone maker with revenue climbing 274% as Washington warms to the dronification of modern warfare.
The fifth name, a fund trading as VCX, is the one to leave alone, even though it remains the only public doorway to one of the most coveted private companies in the world. The full podcast explains why the math refuses to work, and the single price that would change his answer.
Watch the latest episode of Being Exponential With Luke Lango below:
Let’s start with Marvell stock…
Nvidia Corp. (NVDA) CEO Jensen Huang name-checked it on stage, and the stock jumped 20% to 30% in a day. Marvell sits in two of the most important bottlenecks in all of AI: custom silicon and connectivity. Nvidia’s GPUs own training. For inference, the day-to-day running of these models, custom chips win on economics.
Marvell and Broadcom Inc. (AVGO) are the two big dogs building that silicon alongside the hyperscalers. And all those AI clusters have to talk to each other in real time, which is where Marvell’s connectivity gear comes in.
If they hold, the company’s 42% revenue growth can hold too. Push that forward and you get $50 billion in revenue, $25 billion in earnings, and at a 40 times multiple, a $1 trillion valuation, the fourth chip stock to join that club next to Nvidia, Broadcom, and Micron Technology Inc. (MU). I love it long term, but it’s overbought now, so I’d wait for a pullback toward $200.
Then there’s Fluence Energy stock, the clearest reinvention story of the bunch. This was a $40 stock that collapsed into the single digits when its grid-storage dream stalled out. Now it’s roaring back, because the batteries it built for the grid are exactly what power-starved data centers are desperate for.
We’ve seen this movie before. Bloom Energy Corp. (BE) went from a mid-teens stock to north of $300 by pointing its fuel cells at data centers. The money everyone wrote off as wasted spend on electric vehicles and renewables is suddenly the answer to the AI power gap.
Fluence’s data center pipeline jumped 30% sequentially, it’s signed supply agreements with two major hyperscalers, and it’s guiding toward an estimated 48% revenue growth this year while trading at just 1.4 times revenue. I like it from $30 to $40 near term.
Speaking of reinvention, look at Dell stock. Everybody still files it under “boring PC company.” The golden goose is the server business. When you build an AI data center, the Nvidia chips have to go into something, and increasingly they go into Dell’s full-rack solutions.
Last quarter, Dell’s AI-optimized server revenue grew 757% year over year. Total revenue climbed roughly 88%. The company booked $24.4 billion in AI orders, exited with a $51.3 billion backlog, and raised its full-year AI server target toward $60 billion. Some of that came from rival Super Micro Computer Inc. (SMCI), which was beating Nvidia in 2023 and 2024 before accounting problems and federal investigations made it untouchable for many hyperscalers. Those orders found a sticky new home at Dell. The stock’s run hot, so I’d expect a retreat toward the $300 area. Dell is becoming the premier AI server play in the market.
Now the one to avoid. There’s a Fundrise fund trading as VCX that hands ordinary investors a public doorway to private AI darlings, with roughly 20% in Anthropic plus stakes in OpenAI, SpaceX, Anduril, Databricks, and Ramp. It’s the only public wrapper on Anthropic, and I get the appeal.
You can buy OpenAI and SpaceX exposure elsewhere. Anthropic, you cannot. Here’s the problem, and it’s just arithmetic. VCX trades at roughly 10 times its net asset value. Run the optimistic case where Anthropic, OpenAI, and SpaceX all balloon into $10 trillion companies, and the fund’s underlying value still wouldn’t clear $100 a share. It’s been trading around double that, propped up by a liquidity-starved hype trade.
The day Anthropic IPOs, that premium evaporates, and I could see VCX falling toward $50 or $60. That’s where it gets interesting. Not today. And never buy options on this thing. It has swung from $20 to $500 and back to the low hundreds in months. That’s how you lose your shirt.
Finally, Redcat Holdings Inc., a high-torque pure play on the dronification of modern warfare. We’ve watched it in Ukraine and the Middle East, where cheap, consumable drones now dominate the fighting. Redcat has graduated from a niche hopeful to a legitimate U.S. defense supplier, with a flagship Black Widow drone tied to a U.S. Army reconnaissance program.
And Washington is reportedly weighing direct stakes in drone makers. That’s a convergence, and I love a convergence: geopolitical, technological, and company-specific tailwinds all arriving at once. Revenue is expected to surge 274% to $152 million this year.
The enterprise value sits around $2 billion, so you’re paying roughly 10 times next year’s sales, but defense primes like Lockheed Martin and Northrop Grumman command rich multiples. If Redcat executes, this could grow into a $20 billion to $40 billion company. The execution risk is enormous. So is the prize.
One last thing, and it matters. Most of these names are small, fast, and high-beta. That tells you where we are in this bull market: deep into the late innings.
The market reaches for this kind of high-torque, speculative stock as a cycle matures, and the names that are trending are a tell about the moment we’re in.
So play accordingly. You ride these while the music plays, and the band probably keeps going another year or two. You don’t marry them until 2030. Size your positions like you know which game you’re playing.
Want every chart, every price target, and the full case on all five? Watch this week’s episode of Being Exponential. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content.
The artificial intelligence (AI) revolution runs on two things: silicon and electricity. While the market remains fixated on the semiconductor designers, the physical constraints of the world's power grids present a far more immediate bottleneck to hyper-scaling AI.
The staggering power density and volatile load profiles of next-generation AI data centers threaten to overwhelm legacy infrastructure. This creates a structural demand for a new class of enabling hardware, and the market is rapidly re-pricing the companies providing the picks and shovels for this build-out.
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AI's Dirty Secret: The Power BottleneckA standard data center is built for predictable, steady-state power consumption. An AI factory, by contrast, operates at extreme computational intensity, causing massive, dynamic power spikes that can destabilize a local grid.
This is not a problem that can be solved by simply building more power plants; it requires sophisticated, on-site power management and energy storage to smooth loads, stabilize voltage, and provide uninterrupted, clean power to racks of multi-million-dollar GPUs.
Fluence Energy NASDAQ: FLNC has abruptly shifted from a conventional renewable energy storage provider to a mission-critical AI infrastructure supplier within this critical niche. Fluence Energy's recent 44% single-day stock price jump was not a speculative move. It was the market digesting a fundamental re-rating of the business, driven by a powerful endorsement from the heart of the AI ecosystem.
How Siemens Put Fluence on the MapThe catalyst that forced this re-evaluation was the unveiling of a new reference architecture by industrial giant Siemens OTCMKTS: SIEGY. The blueprint details the complete electrical and power infrastructure for a 136-megawatt AI data center built specifically to house the NVIDIA NASDAQ: NVDA DSX Vera Rubin NVL72 AI supercomputer. This design is not a theoretical whitepaper; it is an industrial-grade template for the global deployment of hyperscale AI facilities.
Fluence Energy Today
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Within this critical blueprint, Fluence Energy's SmartStack Battery Energy Storage System is named as the prescribed solution. The system is designed to provide the essential load-smoothing and frequency-ride-through capabilities needed to manage the intense power demands of AI workloads.
The integration specifies battery duration of up to two or three hours, a significant increase from the industry-standard one hour, signaling the unique demands of AI compute.
This endorsement embeds Fluence Energy directly into the technical sales process for NVIDIA's most advanced systems, fundamentally altering its market position and competitive moat.
Following the Institutional FootprintsWhile the narrative is compelling, Fluence Energy's recent financials require a nuanced view. Fluence Energy reported second-quarter fiscal year 2026 revenue of $464.9 million. While this marked an 8% year-over-year increase, it fell short of the analyst consensus of $622 million. However, the market has chosen to look past this top-line miss, focusing instead on Fluence's forward-looking pipeline.
Overall MarketRank™42nd Percentile
Analyst RatingHold
Upside/Downside19.8% Downside
Short Interest LevelHealthy
Dividend StrengthN/A
News Sentiment1.08 Insider TradingSelling Shares
Proj. Earnings GrowthGrowing
See Full Analysis
The bullish case rests on a record $5.6 billion backlog and a newly disclosed 12-gigawatt-hour pipeline specifically for data center projects. This backlog provides significant revenue visibility and suggests that commercial traction is accelerating. Further validating this demand, Fluence Energy has already secured two Master Supply Agreements with major, unnamed hyperscalers, indicating that the need for its BESS technology is both immediate and bankable.
Fluence Energy's dramatic price action was also amplified by technical factors. Prior to the announcement, Fluence Energy had a significant short interest, with 25.19 million shares, or 13.76% of the public float, sold short. The news from Siemens and NVIDIA triggered a short squeeze as bears scrambled to cover their positions, adding mechanical fuel to the rally.
Perhaps most telling is the activity of institutional investors. The stock boasts approximately 53% institutional ownership, and recent 13F filings reveal significant accumulation by sophisticated asset managers. This smart money accumulation signals a high degree of conviction in Fluence Energy's strategic pivot.
Valuing the Gatekeepers of AI PowerThe core of the investment thesis is the market's re-categorization of the business. Fluence Energy is no longer being valued solely as a cyclical clean-energy hardware vendor. With a forward price-to-earnings multiple now above 100x, the equity is trading at a premium typically reserved for high-growth technology companies providing critical infrastructure.
Investors must, however, remain pragmatic. The Siemens reference design is a powerful engineering endorsement, but it is not a binding, exclusive purchase order. Management now faces the critical task of converting this technical validation and its broader pipeline into recognized revenue. Execution risk remains the primary headwind.
Nonetheless, the combination of a technical moat blessed by NVIDIA, tangible demand confirmed by hyperscaler supply agreements, and a massive backlog provides a robust foundation for the new valuation. Fluence Energy appears poised to directly monetize one of the most significant and durable tailwinds of the next decade: the build-out of the power grid for artificial intelligence.
For investors, the recent price surge, which pushed the 14-day relative strength index above 70, an overbought level, suggests a period of consolidation may be healthy. Investors bullish on the long-term AI infrastructure theme might view Fluence Energy as a key holding to watch, focusing on the ability to execute on its backlog. The key metric moving forward will be the conversion of its pipeline into tangible, profitable growth, proving it can fulfill its new role as a foundational supplier to the AI revolution.
Should You Invest $1,000 in Fluence Energy Right Now?Before you consider Fluence Energy, you'll want to hear this.
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ARLINGTON, Va., June 09, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence”) (NASDAQ: FLNC), a global market leader delivering intelligent energy storage systems, services, and asset optimization software, today announced results from an independent review conducted by DNV, the independent energy expert and assurance provider, confirming 99.3% availability across Fluence’s reviewed operating battery energy storage fleets of 50 MW and above.
DNV reviewed Fluence-provided fleet-level availability data, the calculation methodologies incorporated into the company’s contracts, and operational data for select projects. The assessment validated Fluence’s internal findings of 98.7% MW-weighted availability across the reviewed Fluence global fleet of energy storage projects.
“Customers invest in energy storage to deliver power exactly when it is needed, and every minute of downtime represents lost revenue and grid vulnerability,” said John Zahurancik, Chief Customer Success Officer, Fluence. “We worked with DNV to establish a validated benchmark that Fluence customers can count on. Fluence systems are delivering availability among the best-performing power assets in the world, including thermal generation, renewable power, and other energy storage, maximizing the return on investment.”
The DNV review was designed to provide greater transparency into how Fluence systems perform at operating scale throughout the last year. The study assessed fleet-level availability using operational data, applied a consistent methodology across markets and operating environments, and included independent evaluation of the underlying assumptions, methodology, and results.
Across the energy storage industry, availability figures of 95% to 98% are often promoted. However, definitions and measurement approaches vary, which can make it difficult for customers, investors, and asset owners to compare performance across suppliers. Customers experience performance in practical terms, by a system’s operational availability to deliver energy on demand. To guarantee this reliability, they require clear, third-party validated metrics.
“As batteries take on a larger role in ensuring grid reliability, there is increasing need for greater confidence in how performance is measured and understood. Transparent, consistent availability metrics are key to unlocking further investment and grid reliability to meet the increased load growth,” said Marion Hill, Executive Vice President and Region Director, Energy Systems North America at DNV. “DNV worked with Fluence to confirm that their availability methodology is applied consistently and provides clear, comparable insight into fleet level performance.”
The commercial impact of availability can be significant. Even small differences in availability can affect project revenue, operating costs, and long-term asset value, particularly as storage assets operate across different markets, duty cycles, and conditions.
The review represents one of the industry’s more comprehensive independent assessments of fleet-level battery storage availability. As power demand grows from electrification, industrial load, and AI data centers, independently reviewed operating data can help customers distinguish which storage assets are built to deliver dependable, flexible capacity at scale.
The information presented herein is a limited excerpt from a broader report and should not be relied upon as a complete representation of the underlying analysis or conclusions. The full report contains material information, including methodology, assumptions, limitations, and additional findings, necessary for a complete understanding of the results. Access to the full report may be requested through Fluence, subject to Fluence’s approval and DNV’s Important Notice and Disclaimer.
About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise, DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.
Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline, or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.
Driven by its purpose, to safeguard life, property, and the environment, DNV helps its customers seize opportunities and tackle the risks arising from global transformations. DNV is a trusted voice for many of the world’s most successful and forward-thinking companies.
DNV in the Energy Industry
DNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services. As the world’s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.
dnv.com
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company’s solutions and operational services are helping to create a more resilient grid, from powering the next generation of AI-driven data centers to unlocking the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.
For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence’s Full Potential Blog.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements related to operational performance of Fluence systems, anticipated future availability of Fluence systems, and Fluence customers’ financial and operational impact from projected and actual availability of Fluence systems and operational performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “seeks,” “expects,” “plans,” “anticipates,” “grows,” “could,” “intends,” “targets,” “projects,” “contemplates,” "commits", “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements are subject to a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, events and incidents relating to storage, delivery, installation, operation, maintenance, and shutdowns of products; and other important factors set forth in filings we make with the Securities and Exchange Commission from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
Media Contact
Shayla Ebsen, Director of Communications
Email: [email protected]
Phone: +1 (605) 645-7486
Analyst Contact
Chris Shelton, Vice President of Investor Relations and Sustainability
Email: [email protected]
ARLINGTON, Va., June 11, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. ("Fluence") (NASDAQ: FLNC), a global market leader delivering intelligent energy storage systems, services, and asset optimization software, today released its fiscal year 2025 Sustainability Report (the “Report”), covering the period from October 1, 2024, to September 30, 2025.
Now in its fourth year of publication, the Report outlines Fluence’s progress across a wide range of environmental, social, and governance (ESG) initiatives and presents the Company’s sustainability roadmap, which includes plans to strengthen transparency, improve environmental performance across its value chain, and advance responsible and resilient business practices.
“Our mission to transform the way we power our world has never been more urgent, as the need for reliable, flexible, and resilient grids grows stronger every day,” said Julian Nebreda, President and Chief Executive Officer. “Energy storage is playing an increasingly pivotal role in meeting new power demands across global markets, including from the digital infrastructure driving artificial intelligence. We are helping our customers address mission-critical requirements for power quality, reliability, and cybersecurity, while delivering solutions that support faster grid integration, greater energy efficiency, and more sustainable outcomes for the communities we serve.”
Highlights from the 2025 Sustainability Report include:
Establishment of Fluence’s first baseline for Scope 1 and 2 greenhouse gas emissions, creating a clear metric for the Company’s operational climate progress.Completion of Fluence’s second report aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”), offering stakeholders greater insight into the Company’s climate strategy and long-term resilience.Recognition in Fluence’s first EcoVadis assessment with a Commitment Badge for demonstrated progress and transparency across its sustainability program.Recognition by Corporate Knights, which named Fluence the #1 most sustainable corporation in the U.S. and ranked the Company #4 worldwide. Fluence’s sustainability strategy supports several United Nations Sustainable Development Goals and is prepared in alignment with globally recognized frameworks, including the Global Reporting Initiative (“GRI”), the Sustainability Accounting Standards Board (“SASB”), and TCFD. The Company also maintains its ongoing annual commitment to the United Nations Global Compact (UNGC).
To download the Fluence Fiscal Year 2025 Sustainability Report, visit Fluence’s website.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid, from powering the next generation of AI-driven data centers to unlocking the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.
For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our future business expectations, plans and objectives and our sustainability plans, goals, initiatives, and programs. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. The forward-looking statements contained herein are based on our current expectations and beliefs, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, regulatory changes in jurisdictions in which we operate and other factors set forth in filings we make with the Securities and Exchange Commission from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
Media Contact
Shayla Ebsen, Director of Communications
Email: [email protected]
Phone: +1 (605) 645-7486
Analyst Contact
Chris Shelton, Vice President of Investor Relations and Sustainability
Email: [email protected]
Supporting his choice, the company disclosed on June 1 that its Data Center Solutions Business Unit generated $302.7 million in revenue for calendar year 2025.
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Kyndryl Holdings, Inc. faces a critical Q4 earnings report amid ongoing SEC-related issues and executive departures. KD is expected to post weak results, with revenue and EPS likely missing estimates, continuing a trend of underperformance since the IBM spinoff. Implied volatility is high, suggesting large price swings; options writers may benefit, but the unpredictability and potential for outsized moves warrant caution.
Kyndryl Holdings, Inc. (KD - Free Report) closed the most recent trading day at $13.82, moving -1.14% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the company have appreciated by 8.79% over the course of the past month, outperforming the Business Services sector's gain of 6.91%, and lagging the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Kyndryl Holdings, Inc. in its upcoming release. The company plans to announce its earnings on May 6, 2026. The company's upcoming EPS is projected at $0.43, signifying a 17.31% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.83 billion, indicating a 0.68% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.71 per share and a revenue of $15.15 billion, representing changes of +43.7% and +0.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kyndryl Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kyndryl Holdings, Inc. presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Kyndryl Holdings, Inc. is at present trading with a Forward P/E ratio of 6.27. This expresses a discount compared to the average Forward P/E of 16.05 of its industry.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Revenues for the quarter ended March 31, 2026 total $3.8 billion, pretax income is $132 million, net income is $17 million, adjusted EBITDA is $688 million, and adjusted pretax income is $162 million Fiscal year 2026 revenues total $15.1 billion, pretax income is $414 million, net income is $198 million, adjusted EBITDA is $2.7 billion, and adjusted pretax income is $581 million Company provides fiscal year 2027 outlook , /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for its 2026 fiscal year and the quarter ended March 31, 2026, the fourth quarter of its 2026 fiscal year.
"With our mission-critical engineering expertise, we continue to support our customers' most complex IT environments while taking disciplined actions to strengthen our business," said Kyndryl Chairman and Chief Executive Officer Martin Schroeter. "Enterprises are turning to Kyndryl for our high-value services across agentic AI, IT modernization, public and private cloud and cybersecurity to help them modernize at scale, strengthen resilience and unlock greater business value."
"As we move into fiscal 2027, we are focused on consistent execution and improving business fundamentals to drive profitability and cash flow and support our multi-year objectives."
Results for the Fiscal Year Ended March 31, 2026
For the fiscal year ended March 31, 2026, Kyndryl reported revenues of $15.1 billion, flat on a reported basis year-over-year and a decrease of 3% on a constant currency basis. The Company reported pretax income of $414 million, compared to a pretax income of $435 million in fiscal year 2025. The income tax expense was $215 million, an increase from $184 million in the prior-year period, reflecting a non-recurring, non-cash tax accrual from the refinement of certain tax positions recorded in the fourth quarter, and the jurisdictional mix of our earnings. Net income was $198 million, or $0.85 per diluted share, in the year, compared to net income of $252 million, or $1.05 per diluted share, in the prior year. Cash flow from operations was $948 million, compared to $942 million in fiscal year 2025.
Adjusted pretax income was $581 million, a 21% increase compared to adjusted pretax income of $482 million in the prior-year period. Adjusted net income was $341 million, or $1.46 per diluted share, compared to adjusted net income of $285 million, or $1.19 per diluted share in the prior-year period. Adjusted EBITDA was $2.7 billion, a 6% year-over-year increase. Free cash flow was $406 million in fiscal year 2026, compared to $419 million in fiscal year 2025. See "Non-GAAP Metric Definitions and Reconciliations."
Signings for fiscal year 2026 were $13.5 billion, including 38 contracts in excess of $50 million led by the United States segment. Among these large deals, more than 30% consisted of new scope and new logos, doubling from approximately 15% in the prior year period. Kyndryl's signings performance, including new scope over the last few years, better positions the Company to drive toward its multi-year objectives.
Results for the Fiscal Fourth Quarter Ended March 31, 2026
For the fourth quarter, Kyndryl reported revenues of $3.8 billion, a year-over-year decrease of 1% on a reported basis and a year-over-year decrease of 5% in constant currency. The Company reported pretax income of $132 million, a 12% increase compared to pretax income of $118 million in the fourth quarter of fiscal 2025. The income tax expense was $115 million, an increase from $50 million in the prior-year period, reflecting a non-recurring, non-cash tax accrual from the refinement of certain tax positions. Net income was $17 million, or $0.08 per diluted share, in the quarter, compared to net income of $68 million, or $0.28 per diluted share, in the prior-year period. Cash flow from operations was $499 million, compared to $581 million in the fourth quarter of fiscal 2025.
Adjusted pretax income was $162 million, compared to adjusted pretax income of $185 million in the prior-year period. Adjusted net income was $40 million, or $0.18 per diluted share, compared to adjusted net income of $126 million, or $0.52 per diluted share, in the prior-year period. Adjusted EBITDA was $688 million, compared to adjusted EBITDA of $698 million in the prior-year period. Free cash flow was $388 million in the quarter, compared to $353 million in the fourth quarter of fiscal 2025. See "Non-GAAP Metric Definitions and Reconciliations."
Share Repurchases
The Company repurchased 11.6 million shares of its common stock at a cost of $304 million in fiscal 2026, of which 3.3 million were purchased in the fourth quarter at a cost of $49 million. Since the authorization of its share repurchase program in November 2024, the Company has bought back 14.3 million shares for $398 million, or 6% of its shares outstanding with approximately $302 million of capacity remaining under the program.
Fiscal Year Highlights
Hyperscaler-related revenue – In fiscal 2026, Kyndryl recognized $1.9 billion in hyperscaler-related revenue, a 59% increase year-over-year, exceeding its $1.8 billion target for the full year. Kyndryl Consult revenue – In fiscal 2026, Kyndryl Consult revenues were $3.5 billion, a year-over-year increase of 18%, with signings of $4 billion for fiscal 2026. Strong projected margin on signings – Projected pretax margin associated with fiscal 2026 signings was in the high-single-digit range, demonstrating the Company's ability to build expected profit into its services contracts. Incremental contribution from three-A's initiatives – The Company's Advanced Delivery initiative, focused on AI-enabled automation through our Kyndryl Bridge operating platform, and its Accounts initiative to address relationships with substandard margins continued to drive earnings growth and margin expansion in fiscal 2026. Artificial intelligence – During fiscal 2026, the Company launched the Kyndryl Agentic AI Framework, enabling customers to adopt and scale agentic AI across on-premises, cloud and hybrid environments. Building on this foundation, Kyndryl introduced agentic AI services for workforce readiness, Agentic AI Digital Trust to govern and secure deployments, agentic AI services for the mainframe to accelerate modernization, and most recently launched Agentic Service Management to enable autonomous IT operations at scale. Fiscal Year 2027 Outlook
Kyndryl is providing the following outlook for its fiscal year 2027:
Adjusted pretax income of $600 to $700 million Consistent with our definition of adjusted pretax income since fiscal 2025, this includes workforce rebalancing charges Free cash flow of $400 to $500 million Constant-currency revenue flat to down 2% See "Non-GAAP Metric Definitions and Reconciliations."
Earnings Webcast
Kyndryl's earnings call for the fourth fiscal quarter is scheduled to begin at 8:30 a.m. ET on May 6, 2026. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl's investor relations website. A slide presentation will be made available on Kyndryl's investor relations website before the call on May 6, 2026. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance.
The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the Company's reputation and impact on the Company and our stock price resulting from negative publicity; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; the Company's ability to refinance maturing debt on favorable terms in a timely manner, or at all, and risks related to the Company's access to capital and credit markets; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements and changes in laws, regulations and policies in the U.S. and countries where the Company and its customers do business, including with respect to tariffs, taxes and other controls on imports or exports; adverse effects from tax matters; risks related to legal and regulatory claims, suits, investigations, proceedings and other matters, and consequences relating thereto; the Company's ability to remediate, and the timing and costs related to the remediation of, material weaknesses in internal control over financial reporting, as well as the Company's ability to maintain effective controls in the future; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and quarterly report on Form 10-Q for the quarter ended December 31, 2025, as such factors may be updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of April 2026.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, free cash flow, adjusted free cash flow and adjusted operating cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The Company's non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions and additional information about our calculation of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.
A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.
Investor Contact:
[email protected]
Media Contact:
[email protected]
Table 1
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
Three Months Ended
Year Ended
March 31,
March 31,
2026
2025
2026
2025
Revenues
$
3,769
$
3,800
$
15,092
$
15,057
Cost of services
$
2,920
$
2,975
$
11,803
$
11,914
Selling, general and administrative expenses
678
640
2,654
2,591
Workforce rebalancing charges
(1)
23
60
114
Transaction-related costs (benefits)
3
2
41
(125)
Interest expense
29
23
89
100
Other expense (income)
8
18
32
27
Total costs and expenses
$
3,637
$
3,682
$
14,678
$
14,622
Income before income taxes
$
132
$
118
$
414
$
435
Provision for income taxes
115
50
215
184
Net income
$
17
$
68
$
198
$
252
Earnings per share data
Basic earnings per share
$
0.08
$
0.30
$
0.87
$
1.09
Diluted earnings per share
0.08
0.28
0.85
1.05
Weighted-average basic shares outstanding
224.8
231.4
228.3
231.5
Weighted-average diluted shares outstanding
228.0
241.7
233.8
239.1
Table 2
SEGMENT RESULTS
AND SELECTED BALANCE SHEET INFORMATION
(dollars in millions)
Three Months Ended March 31,
Year-over-Year Growth
As
Constant
Segment Results
2026
2025
Reported
Currency
Revenue
United States
$
1,016
$
969
5 %
5 %
Japan
556
605
(8 %)
(5 %)
Principal Markets
1,281
1,273
1 %
(7 %)
Strategic Markets
916
953
(4 %)
(12 %)
Total revenue
$
3,769
$
3,800
(1 %)
(5 %)
Adjusted EBITDA
United States
$
239
$
228
Japan
122
102
Principal Markets
206
231
Strategic Markets
147
161
Corporate and other
(26)
(24)
Total adjusted EBITDA
$
688
$
698
Year Ended March 31,
Year-over-Year Growth
As
Constant
Segment Results
2026
2025
Reported
Currency
Revenue
United States
$
3,784
$
3,876
(2 %)
(2 %)
Japan
2,284
2,358
(3 %)
(4 %)
Principal Markets
5,399
5,206
4 %
(2 %)
Strategic Markets
3,625
3,617
0 %
(5 %)
Total revenue
$
15,092
$
15,057
0 %
(3 %)
Adjusted EBITDA
United States
$
835
$
725
Japan
486
390
Principal Markets
834
886
Strategic Markets
622
606
Corporate and other
(105)
(90)
Total adjusted EBITDA
$
2,672
$
2,516
March 31,
March 31,
Balance Sheet Data
2026
2025
Cash and equivalents
$
2,623
$
1,786
Debt (short-term and long-term)
4,089
3,172
Table 3
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in millions)
Year Ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$
198
$
252
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
Depreciation of property, equipment and capitalized software
762
660
Depreciation of right-of-use assets
289
327
Amortization of transition costs and prepaid software
1,239
1,278
Amortization of capitalized contract costs
458
420
Amortization of acquisition-related intangible assets
27
30
Stock-based compensation
64
100
Deferred taxes
(24)
(1)
Net (gain) loss on asset sales and other
115
(152)
Change in operating assets and liabilities:
Right-of-use assets and liabilities (excluding depreciation)
(330)
(314)
Workforce rebalancing liabilities
(19)
(25)
Current accounts receivable
84
284
Lease and other receivables
(212)
5
Accounts payable
(93)
(89)
Taxes
107
(1)
Deferred transition costs and prepaid software (excluding amortization)1
Proceeds from disposition of property and equipment
65
83
Acquisitions and divestitures, net of cash acquired
1
139
Other investing activities, net
(19)
(20)
Net cash used in investing activities
$
(561)
$
(404)
Cash flows from financing activities:
Debt repayments
$
(146)
$
(148)
Proceeds from borrowings under the revolving credit facility
1,000
—
Common stock repurchases
(304)
(93)
Common stock repurchases for tax withholdings
(94)
(45)
Other financing activities, net
1
—
Net cash provided by (used in) financing activities
$
457
$
(286)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
$
(9)
$
(16)
Net change in cash, cash equivalents and restricted cash
$
836
$
235
Cash, cash equivalents and restricted cash at beginning of period
$
1,789
$
1,554
Cash, cash equivalents and restricted cash at end of period
$
2,626
$
1,789
Supplemental data
Income taxes paid, net of refunds received
$
151
$
149
Interest paid on debt
$
115
$
119
_____________________________
1
Includes $826 million non-cash offsetting increases in deferred costs and other liabilities related to an extended and amended multi-year software license in the year ended March 31, 2026.
Table 4
NON-GAAP METRIC DEFINITIONS AND RECONCILIATIONS
(dollars in millions, except signings)
We report our financial results in accordance with GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.
Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.
Adjusted pretax income is defined as pretax income excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.
Adjusted EBITDA is defined as net income excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Adjusted net income is defined as adjusted pretax income less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income, and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income by revenue.
Adjusted earnings per share (EPS) is defined as adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted earnings per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Free cash flow is defined as cash flows from operating activities (GAAP), less net capital expenditures. Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments (collectively referred to as adjusted operating cash flow), less net capital expenditures. Management uses free cash flow and adjusted free cash flow as measures to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt. We believe these metrics are useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt. Free cash flow, adjusted free cash flow and adjusted operating cash flow are financial measures that are not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP. As part of the Company's ongoing cash and commercial management strategy with customers and suppliers and as previously disclosed, the Company's standard practice since the time of the Company's spin-off from International Business Machines Corporation is to actively manage the Company's working capital, including accounts receivables and accounts payables. This includes optimizing payment terms and conditions, accelerating certain cash receipts and delaying certain cash payments (including deferring vendor payments quarter to quarter), and undertaking other discretionary cash and working capital management initiatives. The magnitude of these practices (including deferrals) has varied from quarter to quarter and impacted the Company's cash flows (and related non-GAAP financial measure of adjusted free cash flow), including positively in certain periods. The effects of these practices have been and are reflected in the Company's accounts payable, accounts receivable and cash flow balance, which are accounted for in accordance with GAAP. The Company's working capital and cash flows have also reflected the impact of accrued contract costs in certain periods due to the timing of vendor billings. The Company may, from time to time, revise or adapt the Company's cash and working capital management practices as it deems appropriate. Free cash flow, adjusted free cash flow, adjusted operating cash flow for the three and twelve months ended March 31, 2026 and 2025, as well as the free cash flow guidance and adjusted free cash flow targets included in this press release or the Company's other earnings materials, reflect the historical and expected application of these practices.
Signings are defined by Kyndryl as an initial estimate of the value of a customer's commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer's commitment. We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings to monitor the performance of the business, as a measure of customer engagement and our ability to drive growth.
Reconciliation of net income
to adjusted pretax income,
adjusted EBITDA, adjusted net
Three Months Ended
Year Ended
income and adjusted EPS
March 31,
March 31,
(in millions, except per share amounts)
2026
2025
2026
2025
Net income (GAAP)
$
17
$
68
$
198
$
252
Provision for income taxes
115
50
215
184
Pretax income (GAAP)
$
132
$
118
$
414
$
435
Charges related to ceasing to use leased/fixed
assets and lease terminations
—
19
—
48
Transaction-related costs (benefits)1
3
2
41
(125)
Stock-based compensation expense (benefit)
(10)
22
64
100
Amortization of acquisition-related intangible
assets
7
7
27
30
Other adjustments2
30
17
36
(6)
Adjusted pretax income (non-GAAP)
$
162
$
185
$
581
$
482
Interest expense
29
23
89
100
Depreciation of property, equipment and
capitalized software
185
186
762
656
Amortization of transition costs and prepaid
software
312
304
1,239
1,278
Adjusted EBITDA (non-GAAP)
$
688
$
698
$
2,672
$
2,516
Net income margin
0.5 %
1.8 %
1.3 %
1.7 %
Adjusted EBITDA margin
18.3 %
18.4 %
17.7 %
16.7 %
Adjusted pretax income (non-GAAP)
$
162
$
185
$
581
$
482
Provision for income taxes (GAAP)
(115)
(50)
(215)
(184)
Tax effect of non-GAAP adjustments
(7)
(9)
(25)
(14)
Adjusted net income (non-GAAP)
$
40
$
126
$
341
$
285
Diluted weighted average shares outstanding for
calculating adjusted EPS
228.0
241.7
233.8
239.1
Diluted earnings per share (GAAP)
$
0.08
$
0.28
$
0.85
$
1.05
Adjusted earnings per share (non-GAAP)
$
0.18
$
0.52
$
1.46
$
1.19
_____________________________
1
Kyndryl's reported results for the year ended March 31, 2025 include a transaction-related gain of $145 million pretax ($138 million after-tax) related to the Company's divestiture of its Securities Industry Services platform in Canada. Kyndryl's reported results for the year ended March 31, 2026 include a transaction-related loss of $38 million pretax ($28 million after-tax) related to an interim arbitration decision on a pre-spin (2006) matter.
2
Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries.
Three Months Ended
Year Ended
Reconciliation of cash flows from operations
March 31,
March 31,
to free cash flow (in millions)
2026
2025
2026
2025
Cash flows from operating activities (GAAP)
$
499
$
581
$
948
$
942
Less: Net capital expenditures1
(111)
(228)
(543)
(522)
Free cash flow (non-GAAP)2
$
388
$
353
$
406
$
419
_____________________________
1
Net capital expenditures consists of capital expenditures less proceeds from dispositions of property and equipment.
2
See "Non-GAAP Metric Definitions and Reconciliations" for more information about our calculation of free cash flow.
Reconciliation of cash flows from operations
Year Ended
to adjusted operating cash flow and
March 31,
adjusted free cash flow (in millions)
2026
2025
Cash flows from operating activities (GAAP)
$
948
$
942
Plus: Transaction-related payments (benefits)
2
(14)
Plus: Workforce rebalancing payments related to
charges incurred prior to March 31, 2024
—
25
Plus: Significant litigation payments
12
15
Adjusted operating cash flow (non-GAAP)1
$
963
$
968
Less: Net capital expenditures
(543)
(522)
Adjusted free cash flow (non-GAAP)1
$
420
$
446
_____________________________
1
See "Non-GAAP Metric Definitions and Reconciliations" for more information about our calculation of adjusted operating cash flow and adjusted free cash flow.
Three Months Ended
Year Ended
March 31,
March 31,
Signings (in billions)
2026
2025
2026
2025
Signings1
$
3.6
$
5.5
$
13.5
$
18.2
_____________________________
1
Currency movements favorably impacted the year‑over‑year change by approximately two points in the three‑ and twelve‑month periods ended March 31, 2026, respectively.
Kyndryl Holdings, Inc. (KD - Free Report) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -58.14%. A quarter ago, it was expected that this company would post earnings of $0.6 per share when it actually produced earnings of $0.52, delivering a surprise of -13.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Kyndryl Holdings, Inc., which belongs to the Zacks Technology Services industry, posted revenues of $3.77 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.49%. This compares to year-ago revenues of $3.8 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kyndryl Holdings, Inc. shares have lost about 44.7% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Kyndryl Holdings, Inc.?While Kyndryl Holdings, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kyndryl Holdings, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $3.72 billion in revenues for the coming quarter and $2.23 on $15.03 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, GDS Holdings (GDS - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of +120.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
GDS Holdings' revenues are expected to be $440.69 million, up 17.4% from the year-ago quarter.
CompaniesMay 6 (Reuters) - Software provider Kyndryl (KD.N), opens new tab said it would cut jobs as part of a new cost-saving plan and forecast annual pretax profit below Wall Street estimates on Wednesday.
Shares of the company fell over 12% in early trading.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
The company, which was spun off from IBM (IBM.N), opens new tab in 2021, has been restructuring a number of low- or no-margin contracts it inherited from the tech giant to improve profitability.
The company said the plan would help reduce annual operating costs by about $400 million to $500 million in fiscal 2028.
It expects to record about $200 million in related charges, mostly for severance and employee benefits.
The cuts come after the software provider delayed the filing of its October-December report, made several management changes, and launched an accounting review over "potential weaknesses" found in its internal controls.
The company had about 73,000 employees as of March 31, 2025. Kyndryl did not disclose how many jobs would be affected by the move.
Kyndryl expects adjusted pretax income between $600 and $700 million in fiscal 2027, including workforce rebalancing charges. The midpoint of this range came in below analysts' average estimate of $672.7 million, according to data compiled by LSEG.
Despite the challenges, the company has benefited from a resilient demand environment. Businesses have prioritized spending on essential software and IT services amid macroeconomic uncertainty driven by U.S. President Donald Trump's ongoing global trade negotiations.
That trend has helped shield companies such as Kyndryl, whose services support day‑to‑day business operations and enable the integration of artificial intelligence technologies across enterprise systems.
Fourth-quarter revenue came in at $3.77 billion, beating estimates of $3.75 billion. Adjusted profit plunged to 18 cents per share, compared with estimates of 45 cents.
Reporting by Kritika Lamba and Anhata Rooprai in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Stocks are closing in on records for a second consecutive day, driven by AI chip enthusiasm and a sharp drop in oil prices tied to reports of a potential U.S.-Iran peace deal. Advanced Micro Devices (AMD +5.30%) surged 17% on strong earnings, while Intel (INTC +4.40%) added 2.7% after yesterday’s big run. The Nasdaq rose more than 2%, with the S&P 500 and Dow both up as well. Positive results from Disney (DIS 0.28%) and Uber (UBER 2.01%) added to the momentum.
AMD’s earnings catalyst: AMD’s 17% jump signals that investors see the AI chip trade as far from over — and peers like Intel are riding the same wave. Oil math doesn’t help drivers yet: Brent and U.S. crude fell 7%+ on Iran peace hopes, but gas prices hit $4.54/gallon — the highest since July 2022 and up from under $3 when the war began. Elon Musk Wants the World’s Biggest Chip Factory 3:35 pm
Elon Musk’s Terafab chip ambitions just got a price tag: $55 billion to start, up to $119 billion all-in. SpaceX is already asking Grimes County, Texas, for a property tax break — a public hearing is set for June 3. Intel (INTC +4.40%) is signed on to help build chips using its 14A process for Tesla (TSLA 0.52%) and friends.
Why not just call TSMC? Musk’s companies can’t get priority at Taiwan Semiconductor Manufacturing (TSM +0.61%) — so he’s building his own foundry. One analyst calls it a "15-year strategy." SpaceX IPO subplot: SpaceX filed confidentially for an IPO in April post-xAI merger — Terafab’s ambitions could loom large in that prospectus. Cash is Still King At Berkshire 3:04 pm — BRKB +0.66%
By Buck Hartzell
Greg Abel took the stage as CEO of Berkshire Hathaway (BRKB +0.02%) for the first time. Berkshire reported a very nice quarter too. Operating earnings grew 17.6% YoY to $11.346 billion. Berkshire has been a net seller of stocks for 14 consecutive quarters now. They hold nearly $380 billion in cash. That’s 30% of total assets in cash or about double the historical average. Yes, stocks are surprisingly expensive today. Abel explained how he will be disciplined in deploying capital. I’m hopeful he will decentralize allocation a bit more. Berkshire is a good alternative to an index fund.
Upstart Grows Fast, Spends Faster, and Margins Take a Hit 2:48 pm — UPST -8.50%
Upstart (UPST 3.40%) delivered a blowout top line — $308.2 million in Q1 revenue, up 44%, crushing estimates. Loan originations surged 61% to $3.4 billion. The catch? Sales and marketing costs nearly doubled, blowing out margins and widening the GAAP operating loss. The stock shed more than 8%.
The Spend That Stung: Marketing hit $104.4 million — management called it an "investment in digital channels," but investors called it a sell-off. Silver Lining Ahead: Full-year guidance held firm at $1.4 billion in revenue and $294 million in adjusted EBITDA, with management promising a stronger second half. Metric (GAAP unless noted)Q1 2026Q1 2025Y/Y changeEPS (diluted)($0.07)($0.03)(133.3%)Revenue (millions)$308$213+44.6%Contribution Profit (millions)$137$102+34.3%Adjusted EBITDA1(millions)$40.5$42.6-4.9%Transaction Volume (billions)$3.4$2.1+61.5% Can Vertical Video Save Disney's Streaming? 1:20 pm -- DIS +6.6%
New Walt Disney (DIS 0.28%) CEO Josh D’Amaro, who took the helm in March, has unveiled a strategic shift centered on high-tech storytelling and aggressive streaming monetization. Following a 6% stock jump, D’Amaro outlined a three-pillar growth plan focused on intellectual property, global consumer engagement, and artificial intelligence. While the company is scrapping a $1 billion investment in OpenAI's discontinued Sora platform, it is doubling down on internal AI to drive efficiencies in content production and theme park operations. This strategy follows a milestone quarter where streaming revenue growth hit double digits, buoyed by the "Verts" vertical video feed and rate adjustments that have Disney targeting 10% streaming growth for the full year.
Franchise Synergy: The massive $1.9 billion box office for Zootopia 2 serves as a blueprint for D'Amaro’s vision, as the hit is already being leveraged across Disney+ streaming, cruise lines, and theme park retail. Streamlining Success: By halting the proposed ESPN spinoff and exploring a unified "Super App," Disney aims to resolve digital fragmentation and boost user retention through a seamless ecosystem. Musk and Anthropic: A $900B AI Alliance? 1:15 pm
Anthropic has secured a massive compute deal with Elon Musk’s SpaceX, gaining exclusive access to the 300-megawatt Colossus 1 data center in Memphis. This partnership is a surprising pivot given Musk’s public criticism of the startup, which is currently seeking a $900 billion valuation. The agreement aims to bolster capacity for Claude Pro users and includes a futuristic proposal to develop gigawatts of compute capacity in space. While Anthropic battles a Pentagon blacklist and ongoing litigation with the Trump administration, it is now utilizing infrastructure built by its primary rival, xAI, which was absorbed by SpaceX earlier this year.
Environmental Friction: The Memphis facility utilizes dozens of natural gas turbines that have sparked local protests over air pollution, presenting a potential ESG hurdle for Anthropic's backers. The Orbiting Brain: The "interest" in space-based development suggests a strategic move to bypass terrestrial power constraints, potentially leveraging the Starlink network from Alphabet (GOOG +1.25%) and SpaceX partners to scale future models. Visa Flexes Its Moat and Earnings Power 12:15 pm -- V -1.2%
By Buck Hartzell
Visa (V +1.85%) reported excellent Q2 2026 earnings. Global payments volume jumped 9% to $3.7 trillion. Revenue grew 17% YoY to $11.2 billion. EPS grew 20% to $3.31. Visa bought back another $7.9 billion of their own shares (largest buyback in company history). Visa is moving big into agentic commerce and micro transactions. They are also working hard to become the connector between stablecoins/blockchain and the real world. Visa now supports 160 stablecoin-linked card programs globally. Visa's vast network and scale make them a key partner for fintech players, not someone that's easily displaced.
Novo Nordisk Hunts for New Deals 12:35 pm -- NVO +2.0%
Novo Nordisk (NVO +1.07%) is shifting into offensive mode as CEO Mike Doustdar announced the pharmaceutical giant is "more active than ever" in pursuing acquisitions to broaden its pipeline. While the company pioneered the GLP-1 market with Ozempic and Wegovy, it has recently lost market share to rival Eli Lilly (LLY 0.70%). To counter analyst skepticism regarding its long-term growth, Novo is accelerating development of CagriSema and zenagamtide. This aggressive deal-making stance follows a strong first quarter where Wegovy pill sales topped expectations, prompting the company to raise its full-year profit guidance.
Winning the Oral Race: While Lilly leads in weekly injections, Novo has secured an early advantage in the emerging weight-loss pill category, a shift that could define the next phase of the obesity market. Internal Optimism: Doustdar hints at undisclosed high-conviction assets currently under development, challenging investors to look beyond current competition to a "broader" future portfolio.
Today's Change
(
1.07
%) $
0.47
Current Price
$
44.43
Nvidia and Corning's Light-Speed Deal 11:40 am -- GLW +13.9%
Corning (GLW +0.98%) shares jumped 10% Wednesday following a massive partnership with Nvidia (NVDA +0.39%) to build three dedicated U.S. manufacturing plants. The deal allows Nvidia to invest up to $2.7 billion in the glassmaker, including warrants for 15 million shares, as the chip giant moves to replace traditional copper wiring with fiber optics. This "co-packaged optics" shift aims to increase data speeds while slashing power consumption by up to 20 times. For Corning, which is already a key supplier for Apple (AAPL 1.41%) and Meta Platforms (META 0.56%), this 10-fold capacity increase cements its role as a premier AI infrastructure play.
Efficiency Unleashed: Replacing the 5,000 copper cables in Nvidia’s "Vera Rubin" racks with optical glass reduces signal loss and allows data to move at the speed of light. Domestic Dominance: The expansion adds 3,000 jobs across North Carolina and Texas, leveraging Corning’s 1970 invention of optical fiber to de-risk the AI supply chain.
Today's Change
(
0.98
%) $
1.73
Current Price
$
178.28
SharkNinja's Global Push Pays Off 11:15 am -- SN -3.6%
By Sanmeet Deo
Team Rule Breakers
SharkNinja (SN 0.40%) delivered a genuinely strong Q1 2026. Net sales grew 15.3% to $1.41 billion, adjusted EPS of $1.09 blew past the $1.02 consensus, and management raised full-year guidance on revenue, earnings, and EBITDA. Oh, and international sales surged 31.6% -- accelerating sharply from 13% just a year ago. On paper, this looks like a company firing on all cylinders.
So why is the stock down more than 5% as I write this?
The culprit is a combination of elevated expectations and an ugly gross margin print.
Software Giant Kyndryl Cuts Workforce 10:15 am -- KD -10.2%
Kyndryl (KD +0.58%) shares plummeted over 12% Wednesday after the IBM (IBM 0.78%) spinoff announced a major workforce reduction and issued fiscal 2027 profit guidance that trailed Wall Street estimates. While quarterly revenue of $3.77 billion narrowly beat expectations, adjusted profit of 18 cents per share missed the 45-cent mark by a mile. The company is aggressively restructuring low-margin contracts inherited during the 2021 split, aiming to slash up to $500 million in annual costs by 2028. This pivot follows recent management turnover and an internal accounting review, adding a layer of risk for investors despite resilient demand for IT integration.
Cleaning the Slate: The restructuring involves $200 million in severance charges as Kyndryl attempts to transition away from the "no-margin" legacy debt left behind by its former parent company. Essential Service Moat: Despite the bottom-line misses, the enterprise remains a vital partner for corporations navigating trade-driven uncertainty, as businesses prioritize spending on the day-to-day IT infrastructure required to run artificial intelligence. Opening Bell 9:35 am -- AMD +19.4%, INTC +3.4%
Markets are rallying this Wednesday as the Dow climbed over 500 points on optimism surrounding a potential end to the U.S.-Iran conflict. While President Trump cautioned that a deal is not guaranteed, the "Project Freedom" pause sent West Texas Intermediatefutures down 5% to $96. Tech is leading the charge, sparked by Advanced Micro Devices (AMD +5.30%), which soared 16% after beating estimates and issuing a stellar second-quarter forecast. This earnings strength is lifting the broader VanEck Semiconductor ETF (SMH +1.22%) and helping Intel (INTC +4.40%) extend its recent record-breaking run.
Market indexes
S&P 500
0.75%
Nasdaq
0.87%
Dow
0.86%
Top of the Morning 9:20 am -- AMD +14.3% in pre-market trading
By Emily Flippen, CFA
Team Rule Breakers
AMD's (AMD +5.30%) first quarter earnings report just blew expectations out of the water, and in my opinion, justifies not just the strong nearly 20% pre-market pop but also warrants a change in the way investors think about this chip business. Investors have always been cautious with AMD since to many it felt like the business was playing catch-up to Nvidia (NVDA +0.39%), capturing the remaining tailwinds of a GPU tide that is being driven by its larger competitor. But this quarter showed that AMD's lead in CPUs can be just as beneficial to its growth trajectory as its improving competitive position in GPUs.
Today's Change
(
5.30
%) $
25.91
Current Price
$
514.36
Today's Breakfast News 9:15 am -- AMD +14.7% in pre-market trading
Advanced Micro Devices (AMD +5.30%) jumped 17% in pre-market trading after beating expectations in the first quarter of fiscal 2026 – on a day when chip stocks pushed the S&P 500 and Nasdaq to new record highs. The chipmaker – beating the S&P 500 by 55% since its 2024 Stock Advisor recommendation by Team Rule Breakers – saw revenue surge 38% in the quarter year over year (YOY), with non-GAAP earnings per share (EPS) up 43%.
"Accelerating demand for AI infrastructure across our portfolio": CEO Lisa Su spoke of the driving force behind AMD's stunning start to the year, describing the quarter as "a clear inflection in our growth trajectory and a structural shift in our business." AMD's partnership with Meta (META 0.56%) should see the deployment of 6 gigawatts of Instinct graphics processing units (GPUs). Guidance for Q2 revenue to reach $11.2 billion: Management predicts a 9% revenue rise between this quarter and the next, which would mean a YOY increase of 46% in Q2.
This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Buck Hartzell has positions in Alphabet, Apple, Berkshire Hathaway, and Walt Disney. Emily Flippen, CFA has no position in any of the stocks mentioned. Sanmeet Deo, CFA has positions in Alphabet, Berkshire Hathaway, Eli Lilly, SharkNinja, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Berkshire Hathaway, Corning, Intel, International Business Machines, Kyndryl, Meta Platforms, Nvidia, SharkNinja, Taiwan Semiconductor Manufacturing, Tesla, Uber Technologies, Upstart, Visa, and Walt Disney. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
Self-proclaimed "world's largest IT infrastructure services provider" Kyndryl Holdings (KD +0.58%) stock got a little less large after missing on its Q4 2026 earnings report this morning.
Analysts had expected Kyndryl to earn $0.49 per share on sales of just under $4 billion for the quarter. Instead, Kyndryl earned only $0.08 per share, and its sales were less than $3.8 billion -- and so now, Kyndryl stock is down 9.4% through 1:20 p.m. ET Wednesday.
Image source: Getty Images.
Kyndryl Q4 earnings Kyndryl's news wasn't horrible, exactly. Sales for the final quarter of the year declined less than 1% year over year, and full-year fiscal 2026 sales were actually up a small fraction of 1%. Despite the tiny changes in sales, however, Kyndryl's profits plummeted dramatically.
For the quarter, Kyndryl's $0.08 per share profit represented a 71% year-over-year decline. For the year, Kyndryl's $0.85 per share profit fell 19%.
Why did the numbers decline? Mainly because Kyndryl operates on such thin margins that almost anything "bad" can upset them. In this case, higher income taxes and a small increase in spending on selling, general, and administrative expenses were enough to upset the apple cart.
Today's Change
(
0.58
%) $
0.07
Current Price
$
11.35
What's next for Kyndryl? The good news is that, as bad as earnings may look right now, Kyndryl is still generating plenty of cash -- $406 million in positive free cash flow in fiscal 2026, down only 3% from last year. The better news is that Kyndryl expects to generate between $400 million and $500 million in fiscal 2027 -- as much as a 23% improvement.
If you ask me, that's simply not bad enough news to justify selling off Kyndryl stock by more than 9%. Wall Street made a mistake today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kyndryl. The Motley Fool has a disclosure policy.
Patented Kyndryl Bridge feature identifies IT issues which AI agents can then resolve, driving savings by avoiding incidents and eliminating costly planned maintenance
, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today unveiled a new patented capability in Kyndryl Bridge – the Company's Al-powered, open integration platform – that is enabling customers to automatically detect and resolve IT risks before they escalate into business-impacting outages.
Kyndryl's prediction and prevention capability has been deployed on Kyndryl Bridge and is providing AI agent-assisted support to the more than 1,400 customers using Kyndryl Bridge. Kyndryl Bridge generates more than 16 million AI insights each month, has demonstrated a reduction in IT incidents by up to 50% and drives an aggregate $3 billion in annual customer savings from avoided impact events and planned maintenance costs.
"By embedding AI agents in Kyndryl Bridge for proactive risk detection, we are transforming IT operations from reactive outage recovery to proactive, evidence-based prevention," said Xerxes Cooper, Global Leader, Kyndryl Delivery. "Correlating millions of observability signals across applications and deep infrastructure helps our customers see and resolve issues before they ever feel them."
This proactive approach is powered by AI-agent assisted root cause analysis within Kyndryl Bridge, enabled across more than 200,000 customer devices to identify the underlying conditions that commonly precede outages. By accelerating analysis that once required extensive manual investigation, the platform enables teams to surface actionable insights faster – supporting earlier intervention and reducing the impact of complex incidents across hybrid and multi-vendor environments.
At scale, this advanced capability radically reduces the time required to complete root-cause analysis of major IT incidents, allowing organizations to complete reports in hours instead of weeks. Kyndryl experts review and validate the generated insights for operational context and alignment with customer environments.
Predictive Detection and Prevention of Failures
Kyndryl's new prediction and prevention feature brings evidence-based intelligence to enable predictive failure detection within IT operations by extending unified observability across a customer's full IT landscape.
The patented feature dynamically identifies patterns that matter and validates causal relationships between application slowdowns, infrastructure contention, configuration changes, and operational events. It does so by analyzing and delivering insights into how small anomalies accumulate and propagate across IT layers. This transforms IT operations from reactive recovery to proactive prevention, enabling teams to intervene early and reduce downtime across complex, multi-vendor environments.
Customer Impact & Availability
Customer engagements show encouraging results with accelerated detection and improved accuracy of issue prevention that may have led to business downtime. This capability handles early detection at scale for 10 million-plus incidents annually and has demonstrated upwards of a 90% reduction in mission-critical production outages for certain customers.
This Kyndryl Bridge patented capability is now fully available to Kyndryl customers.
Learn more about Kyndryl Bridge and how it continues to strengthen its position as the industry's leading platform for proactive IT operations and innovation.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. All statements other than statements of historical fact, including without limitation statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, are forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, including those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K and quarterly report on Form 10-Q for the quarter ended December 31, 2025, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.
The renewal reinforces Arizona's trust in Kyndryl's ability to deliver advanced and innovative motor vehicle services at scale
, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission‑critical enterprise technology services, and the State of Arizona Department of Transportation Motor Vehicle Division (AZ MVD) today announced an expansion of their long-standing systems modernization collaboration. Kyndryl will continue to deliver new capabilities for MVD's statewide services delivery — including expanded mobile and remote services, enhanced end-to-end field office operations, and streamlined transactions for residents and communities.
This expanded agreement with Arizona MVD furthers Kyndryl's commitment to asserting its leadership in the delivery of advanced infrastructure technology services that are enabling DMVs across the United States to transform and modernize their operations and provide enhanced solutions to citizens.
"This renewal reflects AZ MVD's confidence in Kyndryl as a long-term strategic partner," said Mike Cryderman, Motor Vehicle Division Director, Arizona Department of Transportation. "Together, we are modernizing services that millions of Arizonans rely on – reducing friction, expanding access, and supporting residents in completing essential transactions reliably whether they live in urban centers or rural communities. Our work with Kyndryl is essential to delivering timely, resilient and convenient services that meet the needs of a growing state."
"Kyndryl is proud to continue our work with AZ MVD as it expands modern, accessible services to communities across the state," said Anita Mikus, Managing Director, U.S. State and Local Government, Kyndryl. "Arizona was the first state to deploy the MAX platform, and this renewal underscores our continued role in helping lead the next generation of DMV modernization — combining stability, innovation and deep operational expertise to support residents today and into the future."
As part of the extended collaboration, Kyndryl will support the digitization of AZ MVD's mail‑based operations, service desk, and expansion of B2B services including dealers, fleets, motor carriers and insurance companies. This transformation will help the Division deliver more efficient, accessible services to residents, businesses and partners statewide.
Kyndryl will continue to manage and evolve AZ MVD's field office technology, kiosks, payment systems, application support and cloud infrastructure operations, as well as the expansion of the TeleMVD program which enables AZ MVD to extend services beyond traditional field offices and reach communities where access has historically been a challenge. Additionally, in rural areas, Kyndryl is helping AZ MVD improve service delivery by enabling reliable, high-speed connectivity and security to help reach underserved areas across the large geography of Arizona.
Learn more about how Kyndryl is optimizing DMV experiences.
About ADOT MVD:
Provides highway infrastructure and transportation services while safely connecting Arizonans and empowering our economy. The Arizona Department of Transportation Motor Vehicle Division processed 15 million transactions during the previous fiscal year, nearly half of those were online through azmvdnow.gov, getting you out of the line and safely on the road.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission‑critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
MarketBeat Week in Review – 02/17 - 02/21Kyndryl NYSE: KD reported flat full-year fiscal 2026 revenue on a reported basis and outlined a fiscal 2027 outlook that reflects continued pressure from longer sales cycles and changes in how customers buy IBM-related technology, while management emphasized margin expansion, cash generation and growth in consulting and hyperscaler-related services.
Chairman and Chief Executive Officer Martin Schroeter said the company delivered adjusted pretax income growth, margin expansion and more than $400 million in free cash flow during the year ended March 31, 2026. He said the results came despite an environment that “continued to extend sales cycles and weigh on our revenue and signings performance.”
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Kyndryl Soars on AI, Cybersecurity Growth—What’s Next?“Customers are telling us that they are eager to embrace innovative solutions and modernization strategies, yet they are increasingly thoughtful and deliberate in their IT decision-making,” Schroeter said, citing data sovereignty, artificial intelligence and cyber preparedness as factors influencing customer decisions.
Fiscal 2026 Revenue Flat on Reported Basis Kyndryl generated $15.1 billion in fiscal 2026 revenue, flat from the prior year on a reported basis and down 3% in constant currency. Total signings were $13.5 billion. Adjusted EBITDA was $2.7 billion, and adjusted pretax income was $581 million.
MarketBeat Week in Review – 9/25 - 9/29Management said adjusted EBITDA margin rose 100 basis points year over year, while adjusted pretax margin increased 60 basis points. The improvement reflected a shift toward higher-margin post-spin signings flowing through the profit and loss statement.
Harsh, speaking during the company’s prepared remarks, said Kyndryl’s “three-A’s” initiatives remained a source of margin expansion. Through alliances, Kyndryl generated $1.9 billion in hyperscaler-related revenue in fiscal 2026, up 59% from the prior year and ahead of the 50% growth target the company had expected at the start of the year. Advanced Delivery has generated roughly $1 billion in cumulative annual savings, while the Accounts initiative has produced $1 billion in cumulative annualized profit savings from focus accounts.
Free cash flow was $406 million for fiscal 2026, which management said was about $50 million above the midpoint of the company’s February guidance range of $325 million to $375 million. Kyndryl ended the year with $2.6 billion in cash, including $1 billion drawn under its revolving credit facility. Management said net leverage was 0.5 times adjusted EBITDA.
Consulting and Hyperscaler Revenue Remain Growth Areas Schroeter said Kyndryl Consult delivered double-digit revenue growth for the third consecutive year. He said Consult signings exceeded revenue for the year, positioning the business for another year of growth.
Schroeter also highlighted hyperscaler-related revenue, which reached nearly $2 billion in fiscal 2026. He said that revenue stream was “essentially zero” four years ago. In addition to hyperscalers, Kyndryl is also expanding relationships with partners including Broadcom, Dell and Hewlett Packard Enterprise as private cloud demand becomes a more important growth factor.
The company said 80% of fiscal 2027 revenue is expected to come from post-spin, higher-margin signings. Kyndryl signed 38 deals larger than $50 million in fiscal 2026, with more than 30% consisting of new scope or new logos. Over the past three years, the company has signed more than 125 large deals.
AI and Modernization Central to Customer Demand Schroeter said customer conversations are increasingly centered on agentic AI, including return on investment, cybersecurity, workforce implications and compliance in regulated industries. He said modernization has become a requirement as customers contend with technology debt and rising operational costs.
Within Kyndryl’s own delivery operations, Schroeter said AI agents embedded in the Kyndryl Bridge platform are improving productivity. He cited incidents being resolved 70% to 90% faster, root cause analysis cycles becoming approximately 75% faster and dependence on people’s time being reduced by 50% to 70%.
Schroeter also described customer examples involving a large European bank, a global insurance company and U.S. state government agencies. In those cases, he said Kyndryl is applying agentic AI and modernization services to hybrid cloud, mainframe transformation and digital public-sector platforms.
IBM Buying Shift Weighs on Revenue, Not Profit Management repeatedly addressed the evolving relationship with IBM. Harsh said customers have changed how they consume Kyndryl’s services and IBM innovation, especially in the second half of fiscal 2026. He said those changes do not affect the scope or margin of Kyndryl’s services, but they do affect signings size and revenue over time.
At the time of Kyndryl’s spin-off, Harsh said the company’s annualized run rate of spend with IBM was nearly $4 billion. By the end of fiscal 2026, that run rate was less than $2 billion.
In response to a question from Susquehanna analyst Jamie Friedman, Schroeter said the IBM dynamic has evolved differently than the company expected, including compared with assumptions made at its Investor Day and at the start of the prior year.
“It is only on the revenue side,” Schroeter said. “We have zero ability to mark up IBM’s content within our deals.” He said customers’ choices affect signings, backlog and revenue, but not profit.
Fiscal 2027 Outlook and 2028 Targets For fiscal 2027, Kyndryl expects adjusted pretax income of $600 million to $700 million. The outlook includes about $200 million of charges tied to workforce rebalancing actions, expected primarily in the first quarter. Management said related savings should largely offset those charges during fiscal 2027 and generate annualized savings of $400 million to $500 million in fiscal 2028.
The company expects fiscal 2027 free cash flow of $400 million to $500 million, with cash taxes estimated at about $200 million. Revenue is expected to be flat to down 2% in constant currency. Management said Kyndryl Consult and alliance-related revenue should continue to grow, while the IBM-related headwind is expected to remain similar to recent experience. Second-half revenue is expected to be stronger than first-half revenue.
Schroeter said Kyndryl remains focused on its fiscal 2028 targets of more than $1.2 billion in adjusted pretax income and more than $1 billion in free cash flow. He said those targets can be achieved with low single-digit constant currency revenue growth in fiscal 2028.
During the Q&A, Schroeter said sales cycles are likely to remain complex because of the mission-critical nature of Kyndryl’s work, customer choice, regulatory considerations and sovereignty concerns. He said the company’s pipeline entering fiscal 2027 is larger than it was a year earlier and noted that some deals expected in March closed in April.
Kyndryl also said it continues to address previously disclosed material weaknesses in internal controls. Schroeter said the issues did not affect previously issued financial statements and that the company expects design, implementation and testing of controls to be completed when it files its fiscal 2027 Form 10-K next year.
About Kyndryl NYSE: KDKyndryl NYSE: KD is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM's Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl's core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.
With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.
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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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Kyndryl Holdings, Inc. (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced that Chairman and Chief Executive Officer Martin Schroeter will speak at the J.P.Morgan Global Technology, Media and Communications Conference on Monday, May 18, 2026 at 2:50 p.m. ET. During the event, Mr. Schroeter will discuss information regarding Kyndryl's business and/or financial performance.
To listen to the live webcast, please visit Kyndryl's investor relations website at investors.kyndryl.com. A replay of the webcast will be available approximately 24 hours after the live presentation.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
KYNDRYL TO SPEAK AT J.P.MORGAN INVESTOR CONFERENCE ON MAY 18 PR Newswire
NEW YORK, May 13, 2026
, /PRNewswire/ -- Kyndryl Holdings, Inc. (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced that Chairman and Chief Executive Officer Martin Schroeter will speak at the J.P.Morgan Global Technology, Media and Communications Conference on Monday, May 18, 2026 at 2:50 p.m. ET. During the event, Mr. Schroeter will discuss information regarding Kyndryl's business and/or financial performance.
To listen to the live webcast, please visit Kyndryl's investor relations website at investors.kyndryl.com. A replay of the webcast will be available approximately 24 hours after the live presentation.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/kyndryl-to-speak-at-jpmorgan-investor-conference-on-may-18-302771035.html
New York, May 29, 2026 (GLOBE NEWSWIRE) -- The Insight Partners published its latest market intelligence report on the Global Digital Twin Market. The study finds the market, valued at US$ 13,739.99 million in 2024, is projected to reach US$ 140,938.14 million by 2031, registering a compound annual growth rate (CAGR) of 40% over the 2025 - 2031 forecast period. Research draws on primary interviews with C-suite executives, OEM engineers, procurement heads, and policy analysts across more than 15 countries, augmented by proprietary databases and third-party validation.
Market Overview
The Digital Twin market comprises software platforms and virtual simulation technologies that create real-time digital replicas of physical assets, systems, processes, and infrastructure. Key application areas include manufacturing, automotive, aerospace, energy, healthcare, smart cities, and industrial equipment monitoring. Demand is underpinned by three structural tailwinds: accelerating Industry 4.0 adoption, rapid expansion of IoT-connected devices, and growing enterprise focus on predictive maintenance and operational efficiency.
The US government is also taking various measures to boost the adoption of digital twin technology in the country. In May 2024, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry.
latest research on the Digital Twin Market, covering market size forecasts, growth drivers, regulatory trends, and competitive insights. You may access the Sample document here: https://www.theinsightpartners.com/sample/TIPRE00017045
Key Market Findings
Regional Leader: North America is forecast to account for over 35% of global market share by 2031, led by the US and Canada.Europe: Europe holds the second-largest share at over 30%, with the UK market projected to grow at a 40.8% CAGR through 2031.Dominant Segment: Asset Twins retains the largest product segment share globally.Fastest-Growing Segment: Large Enterprises registers the fastest CAGR at 39.2%%, driven by rising digital twin technology investments.Healthcare Growth: Healthcare digital twins are witnessing rapid adoption as healthcare providers increasingly seek data-driven, scalable, and cost-efficient solutions for personalized treatment, predictive care, and operational optimization. Primary Growth Driver: Increasing Adoption of IoT Devices
The Internet of Things (IoT) describes an extensively broad network of interconnected devices along with technologies that enable communications between these devices and the cloud. Recently, there has been a huge surge in the adoption of IoT technologies due to advancements in mobile and wireless connectivity technologies, and a gradual drop in the cost of sensors and other components. Several industries are using IoT to improve efficiency and reduce the costs of their operations. According to Finance Online, there were approximately 14.76 billion connected IoT devices as of November 2023, and this figure is expected to rise to ~25.44 billion by 2030. As per a forecast by IoT Analytics, 75% of the total devices in use would be IoT by 2030. Furthermore, FinleyUSA estimated the global IoT spending at US$ 1.1 trillion in 2023. The use of digital twins is increasing with the surging adoption of IoT. Digital twins require a continuous flow of data to accurately replicate their physical counterparts. IoT devices can fulfill this requirement with built-in sensors. These sensors facilitate real-time data collection from the environment, human interactions, or objects’ functions.
Manufacturing: A High-Value End-Market
The manufacturing industry has pioneered the use of digital twins. Digital twins have become ubiquitous in every stage of manufacturing, ranging from the design phase to the finishing stages. The complex operations of the manufacturing industry make it an ideal industry for implementing digital twins, as they can help manufacturers enhance product quality, improve efficiency, and lower costs. Moreover, with the emergence of smart manufacturing and Industry 4.0, digital twin technology has gained huge traction in the manufacturing sector. By creating a virtual replica connected to the physical asset, digital twins provide smart manufacturers with real-time insights to make quick production decisions. Using digital twins enables smart manufacturers to predict the quality of their end products.
Segment Analysis
Large Enterprises - Market-Leading Product Segment
The large enterprises segment is expected to grow at the highest rate during the forecast period due to an upsurge in investments by large enterprises in digital twin technology and the burgeoning adoption of IoT devices, with an inclination toward remote working augment the use of digital twins in large enterprises. For large enterprises from sectors such as construction, manufacturing, automotive, healthcare, and utilities, the implementation of digital twins is a crucial strategy to enhance operational efficiency, optimize maintenance and operations, and drive innovation.
Healthcare- Fastest-Growing at 42.0% CAGR
Digital twins in healthcare refer to the computer representations of a system, from patients to hospitals, both physical entities and processes. The technology is being increasingly used to evaluate the progress and success of processes such as organ donation and surgical training, along with procedure derisking. Digital twin systems are also developed to simulate the movement of patients through hospitals, identify potential infection hotspots, and monitor contact-related risks.
SMEs - Significant-Growing Enterprise
SMEs have lagged in the adoption of digital twins due to more dynamic and less structured environments. The deployment of digital twins is expected to increase in SMEs with the rise in competitiveness; the technology has the potential to reinforce manufacturing capabilities. and application-driven technology designs.
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Regional Analysis
Asia Pacific - Fastest-Growing Market
Asia Pacific is projected to grow at over 40% CAGR by 2031. Enterprises in the region are increasingly adopting digital twin solutions. The growing need for digital twin solutions across various industries and the rising focus of organizations on enhancing business sustainability are a few of the factors driving the digital twin market growth in the Asia Pacific. According to the Equinix Global Tech Trends Survey 2023, approximately half of IT decision-makers in the Asia Pacific are already using digital twins for operational performance optimization and quality control management. Technologies, including AI and digital twins, are gaining huge traction in the region. All such factors boost the digital twin market growth in the Asia Pacific.
North America - Sustained by Federal Investment
The North America digital twin market is segmented into the US, Canada, and Mexico. In terms of revenue, North America dominated the global digital twin market share in 2024. The region has witnessed huge adoption of technologies such as machine learning (ML), artificial intelligence (AI), and blockchain in the past three years across all the major industry verticals. With the rising penetration of digitization in various industries, the digital twin has become a vital component of business. In addition, the region is home to a majority of key market players such as IBM Corporation, Oracle; Microsoft; ANSYS, Inc; and PTC, leading to the North America digital twin market growth.
Market Dynamics: Key Opportunities and Challenges
Rising Number of Smart City Projects: The reliance on technology for a more comfortable living is increasing with the evolving lifestyles of consumers and communities worldwide. Smart cities have gained huge traction in the last few decades as they can potentially facilitate a new way of living with optimized city functions, in turn enabling economic growth and improved quality of life for consumers by using smart technologies and data analysis. According to TWI Ltd., 54% of the world’s population lives in cities, and the number is expected to rise to 66% by 2050.
High Development Costs: The average cost of digital twin development typically ranges between US$45,000 and US$60,000. However, the final investment can vary significantly based on several factors, including the size and complexity of the enterprise, the level of advanced features and integrations required, the choice of technology stack and coding language, as well as scalability, real-time analytics capabilities, and ongoing maintenance needs.
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Recent Industry Developments (2025 - 2026)
Built on Microsoft Foundry, Kyndryl’s solution helps enterprises predict, prevent and resolve technology disruptions
In April 2026, Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, announced the Kyndryl Digital Twin for the Workplace, a new AI-powered capability designed to help organizations avoid workflow disruption by anticipating and resolving technology issues. Built on Microsoft Foundry, the solution combines predictive intelligence, automation, and operational insight to address one of the most critical challenges of the digital workplace — improving the employee experience through automated IT service operations.
PTC to Accelerate the Design and Simulation of AI Infrastructure and Complex Products with NVIDIA
In July 2025, PTC (NASDAQ: PTC) announced that it is expanding the scope of its collaboration with NVIDIA, the world leader in accelerated computing. PTC is integrating NVIDIA Omniverse technologies into its Creo® computer-aided design (CAD) and Windchill® product lifecycle management (PLM) solutions to transform how manufacturers and product companies design, simulate, and collaborate on complex products — including the foundational hardware of AI infrastructure, such as high-performance PCBs, advanced cooling systems, and large-scale data center equipment. In addition, PTC has joined the Alliance for OpenUSD (AOUSD), reinforcing its commitment to the OpenUSD open and interoperable 3D data standards.
Leading Digital Twin Companies
CompanyProfileGeneral ElectricIndustrial technology leader and early pioneer in Digital Twin applications for aviation, power, and industrial asset performance managementMicrosoftMajor cloud and AI provider offering the Azure Digital Twins platform for smart buildings, manufacturing, and connected infrastructureSiemens AGGlobal industrial automation leader with comprehensive Digital Twin capabilities across manufacturing, energy, and smart infrastructureDassault SystèmesLeading provider of virtual twin experiences through the 3DEXPERIENCE platform for aerospace, automotive, and life sciencesPTC Inc.Industrial software company specializing in IoT-enabled Digital Twin and product lifecycle management (PLM) solutionsRobert Bosch GmbHGerman engineering and technology company leveraging Digital Twins for smart manufacturing, mobility, and industrial automation.IBM CorporationEnterprise AI and hybrid cloud provider delivering Digital Twin solutions for asset optimization and predictive maintenanceOracle CorporationCloud infrastructure and enterprise software provider supporting Digital Twin applications in supply chain and smart operationsAnsys Inc.Engineering simulation leader enabling physics-based Digital Twins for aerospace, automotive, and industrial systems.Autodesk Inc.Design and engineering software company supporting Digital Twin adoption in architecture, construction, and infrastructure projects. About The Insight Partners
The Insight Partners is a globally recognized market research and management consulting firm specializing in technology, media, telecommunications, healthcare, and industrial sectors. Research methodology integrates primary data collection, including executive interviews, OEM surveys, and channel partner analyses, with proprietary secondary research databases and econometric modeling. Reports are used by Fortune 500 companies, private equity firms, government agencies, and institutional investors to inform strategic planning, M&A, and capital allocation decisions. The firm maintains research coverage across 50+ industries and 100+ countries.
Travelers are stuck in a traffic jam as people hit the road before the busy Thanksgiving Day weekend in Chicago, Illinois, U.S., November 21, 2017. REUTERS/Kamil Krzaczynski Purchase Licensing Rights, opens new tab
CompaniesWASHINGTON, June 3 (Reuters) - Major automakers backed the U.S. Environmental Protection Agency proposal to delay for two years enforcement of a regulation requiring significant cuts in air pollution from vehicles, but want the agency to move quickly to rewrite the rules.
The Alliance for Automotive Innovation, a trade group representing General Motors (GM.N), opens new tab, Toyota Motor (7203.T), opens new tab, Volkswagen (VOWG.DE), opens new tab, Ford (F.N), opens new tab, Stellantis (STLAM.MI), opens new tab and Hyundai (005380.KS), opens new tab, said at a public hearing that the delay is needed and called for "a reasonable, workable path forward" and for the agency to "establish realistic and durable long-term standards."
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Environmental groups criticized the delay, saying it would lead to an increase in preventable illness and premature deaths.
The EPA last month estimated that delaying former President Joe Biden's anti-pollution rule would save automakers $1.7 billion. The proposal would delay compliance deadlines for light- and medium-duty vehicles, citing the decline in U.S. sales of electric vehicles, which it said made the more stringent pollution rules unattainable for manufacturers.
The automaker group said the decline in EV sales "has already stranded billions of dollars in investments."
In April 2024, Biden's EPA finalized a rule requiring significant reductions in so-called criteria pollutants emitted from passenger and commercial vehicles from the 2027 through 2032 model years.
Environmental Defense Fund fellow Rishab Jagetia said a two-year delay will result in billions of dollars in health harms, including more serious heart and lung diseases and early deaths. "Vehicle standards save lives," he said.
The Biden rules require a 50% reduction through 2032 for light vehicles and a 58% cut for medium-duty vehicles in the six criteria pollutants: ozone, particulate matter, carbon monoxide, nitrogen dioxide, sulfur dioxide and lead.
In 2024, EPA estimated $13 billion in annualized benefits due to reduced emissions of the pollutants that contribute to the formation of soot and smog.
The Trump administration has taken a series of steps to roll back vehicle regulations.
In February, it finalized its repeal of the "endangerment finding" for vehicles, a 2009 determination that greenhouse gas emissions endanger human health, which gave the EPA authority to regulate emissions from vehicles.
In December, the Transportation Department proposed significantly reducing the fuel economy requirements from model years 2022 to 2031, requiring 34.5 miles per gallon on average by 2031, down from 50.4 miles per gallon.
Reporting by David Shepardson in Washington Editing by Bill Berkrot
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New Kyndryl Agentic AI Framework capability designed to fuel more responsive supply chains and personalized customer experiences across retail, CPG, travel and transportation industries
, /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission‑critical enterprise technology services, today announced Kyndryl AI Orchestration for Business, a new capability built with the Kyndryl Agentic AI Framework designed to move enterprises beyond experimentation and siloed workflows to enterprise-wide AI impact.
As organizations in retail, consumer packaged goods (CPG), travel and transportation, and other industries struggle to leverage AI to meet customer expectations around personalized experiences, real-time responsiveness and seamless fulfillment, Kyndryl AI Orchestration for Business helps to address this challenge. The capability autonomously interacts with AI agents across supply chains, commerce, finance, IT and customer operations to enable seamless coordination, cross-functional alignment and controlled execution at scale – supporting governed, policy-driven AI agent functionality.
"Enterprises are moving fast to embrace AI, but most are stuck in isolated pilots that don't change or improve their daily operations," said Rachel Calhoun, Vice President and Global Retail, CPG, and Travel and Transportation Leader at Kyndryl. "Kyndryl AI Orchestration for Business helps companies bring order and clarity to AI complexity – coordinating how AI agents act across business functions, with clear guardrails and human oversight. That means fewer disruptions, faster decisions and the ability to protect and grow revenue and customer loyalty as AI becomes part of how the business runs."
Kyndryl AI Orchestration for Business combines data, events and AI agents from across the enterprise to support role-based decision making and real-time action. Instead of reacting to issues after they occur, leaders and frontline teams receive proactive alerts, recommended actions and embedded agentic workflows that allow them to augment their own workstreams to intervene or approve automated actions before disruptions impact customers or revenue.
Kyndryl AI Orchestration for Business supports agentic workflows for use cases across store and enterprise operations, including:
Agentic Commerce: Connects supply chain, pricing, promotions and customer engagement – allowing organizations to anticipate demand shifts, manage disruptions and personalize customer experiences without sacrificing control. Proactive supply chain disruption management: Identifies supply risks, impacted SKUs and financial exposure in real time, prompting planners and managers to act before stock‑outs reach stores or customers. Role‑based operational orchestration: Delivers alerts, recommendations and actions to the right roles – such as demand planners, supply chain leaders and pricing teams – enabling faster, more coordinated decisions across functions. Policy‑driven execution and auditability: Embeds operational, regulatory and business rules directly into agent workflows at the reasoning level using policy as code, with full transparency into how decisions are made and executed. Coordinated commerce and customer experience enablement: Aligns supply, inventory, pricing and fulfillment decisions in real time to reduce disruptions, protect revenue and deliver a more consistent customer experience. Kyndryl Consult experts will help customers design, deliver and deploy AI Orchestration for Business, while leveraging the full Kyndryl Agentic AI Framework and the company's deep experience running mission-critical systems across hybrid cloud, on-premises and edge environments. The capability is cloud and large language model-agnostic, integrates with existing enterprise platforms and can operate with or without managed services tools – giving organizations the flexibility to modernize at their own pace.
Kyndryl is uniquely positioned to be the orchestration partner of choice for these industries, recognizing that achieving enterprise-scale process transformation requires targeted modernization across varied technology landscapes. Kyndryl accelerates this journey through a catalog of workflows and AI-native industry architectures that deliver speed, consistency and quality at scale. From unlocking legacy data and transactions across mainframe and distributed environments, to re-architecting applications to enable Model Context Protocol servers and power agentic workflows, Kyndryl leverages its comprehensive services to drive efficient end-to-end transformation.
Learn more information about Kyndryl AI Orchestration for Business.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. All statements other than statements of historical fact, including without limitation statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, are forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties, including those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.
In the latest close session, Kyndryl Holdings, Inc. (KD - Free Report) was down 2.43% at $11.25. The stock trailed the S&P 500, which registered a daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
Prior to today's trading, shares of the company had gained 0.44% outpaced the Business Services sector's gain of 0.29% and the S&P 500's loss of 0.03%.
The upcoming earnings release of Kyndryl Holdings, Inc. will be of great interest to investors. On that day, Kyndryl Holdings, Inc. is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 54.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.69 billion, down 1.42% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.98 per share and a revenue of $14.76 billion, indicating changes of +35.62% and -2.19%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Kyndryl Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 7.38% fall in the Zacks Consensus EPS estimate. Kyndryl Holdings, Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Kyndryl Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 5.83. This denotes a discount relative to the industry average Forward P/E of 16.5.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KD in the coming trading sessions, be sure to utilize Zacks.com.
Baxter International (NYSE:BAX – Get Free Report) and Zynex (NASDAQ:ZYXI – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Insider and Institutional Ownership 90.2% of Baxter International shares are held by institutional investors. Comparatively, 29.7% of Zynex shares are held by institutional investors. 0.2% of Baxter International shares are held by company insiders. Comparatively, 49.3% of Zynex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation This table compares Baxter International and Zynex”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Baxter International $11.24 billion 0.77 -$957.00 million ($1.85) -9.01 Zynex $108.20 million 0.04 $2.99 million ($2.43) -0.05 Zynex has lower revenue, but higher earnings than Baxter International. Baxter International is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of recent recommendations for Baxter International and Zynex, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Baxter International 2 9 2 0 2.00 Zynex 1 2 1 0 2.00 Baxter International currently has a consensus price target of $19.90, suggesting a potential upside of 19.36%. Zynex has a consensus price target of $4.90, suggesting a potential upside of 3,820.00%. Given Zynex’s higher possible upside, analysts plainly believe Zynex is more favorable than Baxter International.
Profitability This table compares Baxter International and Zynex’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Baxter International -8.51% 16.95% 5.62% Zynex -68.35% -804.30% -36.67% Risk & Volatility Baxter International has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Summary Baxter International beats Zynex on 8 of the 13 factors compared between the two stocks.
About Baxter International (Get Free Report)
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories. It also provides administrative sets; adhesion prevention products; inhaled anesthesia; drug compounding; chronic and acute dialysis therapies and services, including peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapies (CRRT), and other organ support therapies. The company’s products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors’ offices, and patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic products; and a collaborative research agreement with Miromatrix Medical Inc. aiming to advance care for patients with acute liver failure. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.
About Zynex (Get Free Report)
Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.
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Shares of Baxter International Inc. (NYSE:BAX – Get Free Report) have been assigned a consensus rating of “Hold” from the thirteen analysts that are presently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $19.80.
Several equities analysts have recently weighed in on BAX shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Baxter International in a report on Wednesday, January 21st. The Goldman Sachs Group dropped their price objective on shares of Baxter International from $21.00 to $17.00 and set a “neutral” rating on the stock in a report on Friday, February 13th. Citigroup dropped their price objective on shares of Baxter International from $21.00 to $19.00 and set a “neutral” rating on the stock in a report on Wednesday, March 11th. Wells Fargo & Company dropped their price objective on shares of Baxter International from $21.00 to $19.00 and set an “equal weight” rating on the stock in a report on Friday, December 12th. Finally, Evercore dropped their price objective on shares of Baxter International from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday.
Check Out Our Latest Stock Report on BAX
Institutional Investors Weigh In On Baxter International A number of institutional investors and hedge funds have recently made changes to their positions in BAX. Greenhaven Associates Inc. acquired a new stake in shares of Baxter International in the 3rd quarter worth about $143,186,000. Dodge & Cox raised its holdings in shares of Baxter International by 10.1% in the 3rd quarter. Dodge & Cox now owns 57,396,370 shares of the medical instruments supplier’s stock worth $1,306,915,000 after acquiring an additional 5,274,750 shares during the last quarter. SG Americas Securities LLC raised its holdings in shares of Baxter International by 477.6% in the 4th quarter. SG Americas Securities LLC now owns 1,725,251 shares of the medical instruments supplier’s stock worth $32,970,000 after acquiring an additional 1,426,547 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Baxter International by 7.8% in the 4th quarter. Geode Capital Management LLC now owns 13,510,205 shares of the medical instruments supplier’s stock worth $257,174,000 after acquiring an additional 972,891 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in shares of Baxter International by 35.6% in the 4th quarter. Russell Investments Group Ltd. now owns 3,410,689 shares of the medical instruments supplier’s stock worth $65,216,000 after acquiring an additional 894,761 shares during the last quarter. Institutional investors and hedge funds own 90.19% of the company’s stock.
Baxter International Price Performance BAX stock opened at $16.62 on Wednesday. The company’s fifty day simple moving average is $18.87 and its 200 day simple moving average is $19.71. Baxter International has a 12-month low of $15.73 and a 12-month high of $32.68. The firm has a market cap of $8.58 billion, a price-to-earnings ratio of -8.98, a PEG ratio of 1.18 and a beta of 0.62. The company has a quick ratio of 1.56, a current ratio of 2.31 and a debt-to-equity ratio of 1.55.
Baxter International (NYSE:BAX – Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The medical instruments supplier reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.09). Baxter International had a negative net margin of 8.51% and a positive return on equity of 16.95%. The company had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same quarter in the prior year, the company posted $0.58 EPS. Baxter International’s revenue for the quarter was up 8.0% on a year-over-year basis. Baxter International has set its FY 2026 guidance at 1.850-2.050 EPS. On average, analysts expect that Baxter International will post 2.48 earnings per share for the current year.
Baxter International Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, February 27th were issued a dividend of $0.01 per share. The ex-dividend date was Friday, February 27th. This represents a $0.04 annualized dividend and a dividend yield of 0.2%. Baxter International’s dividend payout ratio is currently -2.16%.
Baxter International Company Profile (Get Free Report)
Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company’s primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter’s offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.
In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.
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DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a leading global medtech company, will host a conference call to discuss its first-quarter 2026 financial results on Thursday, April 30, 2026 at 7:30 a.m. Central Time. To participate in this conference call please follow this link https://registrations.events/direct/Q4I946023356 to pre-register for the call and receive the call information. This call is also being webcast and can be accessed through Baxter's website at www.
DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, is highlighting recent additions to its Global Surgical Solutions and Patient Support Systems portfolios, as well as its broad Advanced Surgery portfolio of hemostatic and sealing agents, at the Association of periOperative Registered Nurses (AORN) Global Surgical Conference & Expo, taking place April 11-14, 2026 in New Orleans. New offerings include the AAT XR spine surgical table and the Dynam.
