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Posted by Defense World Staff on Apr 5th, 2026

Shares of DT Midstream, Inc. (NYSE:DTM – Get Free Report) have received a consensus rating of “Hold” from the twelve research firms that are presently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $144.10.

A number of brokerages have recently issued reports on DTM. Citigroup boosted their price objective on shares of DT Midstream from $130.00 to $156.00 and gave the company a “buy” rating in a research report on Tuesday, February 24th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of DT Midstream in a report on Wednesday, January 21st. Wall Street Zen downgraded DT Midstream from a “hold” rating to a “sell” rating in a research report on Saturday, March 28th. UBS Group boosted their price target on DT Midstream from $128.00 to $152.00 and gave the company a “buy” rating in a report on Friday, February 20th. Finally, Jefferies Financial Group set a $148.00 price target on DT Midstream and gave the stock a “buy” rating in a research report on Friday, February 20th.

Get Our Latest Analysis on DTM

Insider Buying and Selling In other news, CFO Jeffrey A. Jewell bought 185 shares of the firm’s stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $136.33 per share, for a total transaction of $25,221.05. Following the purchase, the chief financial officer owned 89,583 shares in the company, valued at approximately $12,212,850.39. The trade was a 0.21% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On DT Midstream Hedge funds have recently modified their holdings of the company. NewEdge Wealth LLC raised its position in shares of DT Midstream by 2.4% during the 4th quarter. NewEdge Wealth LLC now owns 3,613 shares of the company’s stock valued at $432,000 after purchasing an additional 85 shares during the period. Covestor Ltd boosted its holdings in DT Midstream by 11.2% in the 4th quarter. Covestor Ltd now owns 897 shares of the company’s stock worth $107,000 after buying an additional 90 shares during the period. Richardson Financial Services Inc. increased its stake in DT Midstream by 62.7% in the 4th quarter. Richardson Financial Services Inc. now owns 244 shares of the company’s stock worth $29,000 after buying an additional 94 shares in the last quarter. VestGen Investment Management increased its stake in DT Midstream by 1.2% in the 4th quarter. VestGen Investment Management now owns 7,698 shares of the company’s stock worth $921,000 after buying an additional 94 shares in the last quarter. Finally, Pathstone Holdings LLC raised its holdings in DT Midstream by 0.3% during the third quarter. Pathstone Holdings LLC now owns 28,322 shares of the company’s stock valued at $3,215,000 after acquiring an additional 97 shares during the period. 81.53% of the stock is currently owned by institutional investors.

DT Midstream Price Performance Shares of NYSE:DTM opened at $134.08 on Friday. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $13.68 billion, a PE ratio of 31.11, a price-to-earnings-growth ratio of 2.77 and a beta of 0.75. The firm’s 50 day moving average price is $134.01 and its 200-day moving average price is $121.87. DT Midstream has a twelve month low of $83.30 and a twelve month high of $143.67.

DT Midstream (NYSE:DTM – Get Free Report) last announced its earnings results on Thursday, February 19th. The company reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.11 by ($0.03). DT Midstream had a net margin of 35.48% and a return on equity of 9.13%. The business had revenue of $317.00 million for the quarter, compared to the consensus estimate of $320.07 million. During the same quarter last year, the firm posted $0.94 earnings per share. Equities research analysts expect that DT Midstream will post 3.8 EPS for the current year.

DT Midstream Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Monday, March 16th will be issued a $0.88 dividend. The ex-dividend date of this dividend is Monday, March 16th. This represents a $3.52 annualized dividend and a yield of 2.6%. This is a positive change from DT Midstream’s previous quarterly dividend of $0.82. DT Midstream’s payout ratio is currently 81.67%.

About DT Midstream (Get Free Report)

DT Midstream Inc (NYSE: DTM) is a midstream energy company that owns and operates infrastructure for gathering, processing and treating hydrocarbons and produced water. Its core business activities encompass natural gas gathering, cryogenic processing, natural gas liquids (NGL) fractionation, and produced-water handling services. These integrated operations enable the company to capture and transport multiple hydrocarbon streams from wellhead to market and to provide essential water management solutions.

The company’s asset footprint is concentrated in the Delaware Basin in West Texas and southeastern New Mexico, where it serves a diverse range of exploration and production customers.

Further Reading Five stocks we like better than DT Midstream

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DETROIT, April 16, 2026 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (NYSE: DTM) plans to announce first quarter 2026 financial results before the market opens on Thursday, April 30, 2026.

DT Midstream has scheduled a conference call to discuss results for 9:00 a.m. ET (8:00 a.m. CT) the same day. Investors, the news media and the public may listen to a live internet broadcast of the call at this link. The participant toll-free telephone dial-in number in the U.S. and Canada is 888.596.4144, and the toll number is 646.968.2525; the passcode is 7282929. International access numbers are available here.

The webcast will be archived on the DT Midstream website at investor.dtmidstream.com.

About DT Midstream

DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. For more information, please visit the DT Midstream website at www.dtmidstream.com.

Investor Relations

Todd Lohrmann, DT Midstream, 313.774.2424
[email protected]

The S&P 500 printed an all-time high. Then a war, an oil shock and a geopolitical gut-punch erased nearly 10% in 30 days. Then, in even less time, the index roared back above 7,000 and set a new record. Gold is hovering near $4,820 an ounce. Oil is swinging between $85 and $110 a barrel on every Strait of Hormuz headline. Inflation just printed 3.3%, the biggest monthly jump since June 2022.

That's the setup. All-time highs during a fragile ceasefire that expires April 22, with the safe-haven trade screaming in the background.

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For buy-and-hold investors, it feels like whiplash. For traders who know how to read the data, it's the environment that produces the cleanest setups of the decade.

Volatility Doesn't Kill Signals—It Multiplies ThemThe core reframe from Tradesmith CEO Keith Kaplan is this: Rapid, dramatic price swings don't erase repeatable patterns in market data. They force the tape into rare configurations that only surface a handful of times per decade, and those configurations carry the highest historical accuracy and the biggest potential gains.

It's the Jim Simons playbook, pulled into a post-2020 market. Simons averaged 66% annual returns for four decades by ignoring long-term fundamentals and hunting short-term, repeatable mathematical patterns. Kaplan's team has built a machine-learning system that scans roughly 2,500 stocks each morning for those exact fingerprints, then scores each signal against current market conditions.

That matters because the same signal doesn't behave the same way in every tape. Context is the filter.

Three names cleared the filter this week.

United Airlines Stock: A High-Quality Mean Reversion SetupFirst on the list is United Airlines Holdings Inc. NASDAQ: UAL. Kaplan's system flagged UAL with a bullish pivot signal, which is Tradesmith's language for a mean reversion setup, and scored it 98.82 out of 100 on quality.

United Airlines Today

UAL

United Airlines

$112.17 -0.44 (-0.39%)

As of 09:54 AM Eastern

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

52-Week Range$71.55▼

$119.21P/E Ratio10.05

Price Target$134.59

The historical accuracy on this specific fingerprint is 92.41%, with an average return of 6.66% and an average hold time of just over half a month. Annualize that, and the math gets interesting fast.

The key point, and this is what separates signal-based trading from conventional analysis: the setup has nothing to do with fuel costs, booking trends or the latest earnings print. It's a pattern in the price data that has paid out roughly nine times out of 10 when it has fired in the past. The target exit is an 8% move, meaningful for a stock like UAL.

DT Midstream Stock: An Oversold Signal in a Small-Cap NameThe second name is DT Midstream Inc. NYSE: DTM, a natural gas pipeline and storage operator with a market cap just under $14 billion that has only traded publicly since July 2021.

DT Midstream Today

DTM

DT Midstream

$142.96 +2.63 (+1.88%)

As of 09:54 AM Eastern

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

52-Week Range$98.06▼

$152.88Dividend Yield2.46%

P/E Ratio31.42

Price Target$154.46

DTM saw a streak of progressively lower closes in March and early April, one of the more reliable oversold fingerprints in Kaplan's system. Quality score: 95.63. Average return when this signal has fired: 8.85%. Historical max loss: under 4%. Win rate: just over nine in 10.

The median win comes in around 10.5%, and the exit is either signal-based or time-based, with a hard stop around a month.

The risk is the one every small-cap trader already knows. Lower float means lower liquidity, so position sizing matters more here than with a name like UAL.

The upside is a clean, oversold setup in a sector that most traders aren't watching right now.

Astera Labs Stock: A Speculative Sprint SignalThe third name is the speculative one. Astera Labs Inc. NASDAQ: ALAB has run hard since its March 2024 debut, and the system tagged it with what Tradesmith calls a sprint category signal. The idea is simple: momentum carrying further.

Astera Labs Today

$363.34 -4.13 (-1.12%)

As of 09:54 AM Eastern

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

52-Week Range$84.78▼

$390.99P/E Ratio249.93

Price Target$233.75

Quality score on ALAB came in near 100. Historical win rate is almost nine in 10 when this signal has fired, with an average return of 27.22%. The max loss on record is close to 6%, and one prior fire produced a 50% gain.

The wrinkle is that ALAB sold off roughly 5% on the day of filming. Kaplan reads that pullback as a gift, a second entry on top of an already-strong signal.

The risk is obvious, since the last few fires on this specific pattern actually closed at losses. Size accordingly.

What the NASDAQ's Streak Is Telling TradersZoom out and the backdrop gets more interesting. The Nasdaq Composite just saw a streak of consecutively higher closes, its longest winning streak since July 2009.

History suggests these streaks tend to be followed by short-term volatility and longer-term strength. The setup is exactly the kind of repeatable pattern Kaplan's system is built to read, and it flashed right as the Iran ceasefire headed into a make-or-break week.

Expect turbulence. Expect signals. The setup favors traders who are paying attention.

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Posted by Defense World Staff on Apr 23rd, 2026

Cwm LLC raised its position in shares of DT Midstream, Inc. (NYSE:DTM – Free Report) by 518.0% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 34,544 shares of the company’s stock after purchasing an additional 28,954 shares during the period. Cwm LLC’s holdings in DT Midstream were worth $4,134,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. V Square Quantitative Management LLC purchased a new position in shares of DT Midstream during the 4th quarter valued at about $28,000. Richardson Financial Services Inc. lifted its position in DT Midstream by 62.7% in the 4th quarter. Richardson Financial Services Inc. now owns 244 shares of the company’s stock worth $29,000 after buying an additional 94 shares during the last quarter. Mather Group LLC. purchased a new stake in DT Midstream in the third quarter worth approximately $30,000. Centerpoint Advisors LLC boosted its stake in DT Midstream by 198.9% in the third quarter. Centerpoint Advisors LLC now owns 269 shares of the company’s stock worth $30,000 after buying an additional 179 shares in the last quarter. Finally, First Horizon Corp bought a new position in DT Midstream during the third quarter valued at approximately $32,000. Institutional investors own 81.53% of the company’s stock.

DT Midstream Price Performance Shares of DT Midstream stock opened at $131.79 on Thursday. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.07 and a quick ratio of 1.07. DT Midstream, Inc. has a one year low of $94.15 and a one year high of $143.67. The business’s 50 day simple moving average is $135.70 and its two-hundred day simple moving average is $123.88. The stock has a market capitalization of $13.44 billion, a P/E ratio of 30.58, a price-to-earnings-growth ratio of 2.70 and a beta of 0.75.

DT Midstream (NYSE:DTM – Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The company reported $1.08 earnings per share for the quarter, missing analysts’ consensus estimates of $1.11 by ($0.03). DT Midstream had a net margin of 35.48% and a return on equity of 9.13%. The company had revenue of $317.00 million for the quarter, compared to analysts’ expectations of $320.07 million. During the same period last year, the company posted $0.94 EPS. Analysts forecast that DT Midstream, Inc. will post 4.63 EPS for the current year.

DT Midstream Increases Dividend The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, March 16th were given a dividend of $0.88 per share. This represents a $3.52 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Monday, March 16th. This is an increase from DT Midstream’s previous quarterly dividend of $0.82. DT Midstream’s dividend payout ratio is currently 81.67%.

Wall Street Analysts Forecast Growth DTM has been the topic of several research reports. Barclays lifted their price target on shares of DT Midstream from $119.00 to $141.00 and gave the stock an “equal weight” rating in a research note on Thursday, March 5th. The Goldman Sachs Group increased their target price on shares of DT Midstream from $111.00 to $127.00 and gave the company a “sell” rating in a report on Monday. Mizuho lifted their target price on shares of DT Midstream from $108.00 to $129.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 17th. Weiss Ratings reissued a “buy (b)” rating on shares of DT Midstream in a research note on Wednesday, January 21st. Finally, Stifel Nicolaus set a $137.00 price target on shares of DT Midstream and gave the company a “hold” rating in a research report on Monday, February 23rd. Six research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $144.91.

Check Out Our Latest Analysis on DT Midstream

Insiders Place Their Bets In other news, CFO Jeffrey A. Jewell purchased 185 shares of the business’s stock in a transaction on Wednesday, February 25th. The shares were acquired at an average price of $136.33 per share, with a total value of $25,221.05. Following the acquisition, the chief financial officer directly owned 89,583 shares in the company, valued at approximately $12,212,850.39. The trade was a 0.21% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.54% of the stock is owned by insiders.

DT Midstream Company Profile (Free Report)

DT Midstream Inc (NYSE: DTM) is a midstream energy company that owns and operates infrastructure for gathering, processing and treating hydrocarbons and produced water. Its core business activities encompass natural gas gathering, cryogenic processing, natural gas liquids (NGL) fractionation, and produced-water handling services. These integrated operations enable the company to capture and transport multiple hydrocarbon streams from wellhead to market and to provide essential water management solutions.

The company’s asset footprint is concentrated in the Delaware Basin in West Texas and southeastern New Mexico, where it serves a diverse range of exploration and production customers.

Featured Articles Five stocks we like better than DT Midstream Want to see what other hedge funds are holding DTM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for DT Midstream, Inc. (NYSE:DTM – Free Report).

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DETROIT, April 30, 2026 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (NYSE: DTM) today announced first quarter 2026 reported net income of $130 million, or $1.27 per diluted share. For the first quarter of 2026, Operating Earnings were $130 million, or $1.27 per diluted share. Adjusted EBITDA for the quarter was $308 million.  

Reconciliations of Operating Earnings and Adjusted EBITDA (non-GAAP measures) to reported net income are included at the end of this news release.

The company also announced that the DT Midstream Board of Directors declared a $0.88 per share dividend on its common stock payable July 15, 2026 to stockholders of record at the close of business June 15, 2026.

“Our first quarter results give us a great start to the year,” said David Slater, Executive Chairman and CEO. “And I am pleased that we were able to advance new interstate pipeline growth projects.”

Slater noted the following significant business updates:

DTM has approved investment in the Vector Pipeline 2028 expansion project and the Millennium Pipeline R2R projectSuccessfully completed non-binding open seasons for an expansion of Midwestern Gas Transmission and an additional expansion of Vector Pipeline; both open seasons received customer interest exceeding the offered capacityPlaced into service a new power plant lateral from Midwestern Gas Transmission “Our first quarter results place us on track to deliver our financial goals for 2026,” said Jeff Jewell, Executive Vice President and CFO.

The company has scheduled a conference call to discuss results for 9:00 a.m. ET (8:00 a.m. CT) today. Investors, the news media and the public may listen to a live internet broadcast of the call at this link. The participant toll-free telephone dial-in number in the U.S. and Canada is 888.596.4144, and the toll number is 646.968.2525; the passcode is 7282929. International access numbers are available here. The webcast will be archived on the DT Midstream website at investor.dtmidstream.com.

About DT Midstream

DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. For more information, please visit the DT Midstream website at www.dtmidstream.com.

Why DT Midstream Uses Operating Earnings, Adjusted EBITDA and Distributable Cash Flow

Use of Operating Earnings Information – Operating Earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DT Midstream management believes that Operating Earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses Operating Earnings as the primary performance measurement for external communications with analysts and investors. Internally, DT Midstream uses Operating Earnings to measure performance against budget and to report to the Board of Directors.

Adjusted EBITDA is defined as GAAP net income attributable to DT Midstream before expenses for interest, taxes, depreciation and amortization, and loss from financing activities, further adjusted to include the proportional share of net income from equity method investees (excluding interest, taxes, depreciation and amortization), and to exclude certain items the company considers non-routine. DT Midstream believes Adjusted EBITDA is useful to the company and external users of DT Midstream’s financial statements in understanding operating results and the ongoing performance of the underlying business because it allows management and investors to have a better understanding of actual operating performance unaffected by the impact of interest, taxes, depreciation, amortization and non-routine charges noted in the table below. We believe the presentation of Adjusted EBITDA is meaningful to investors because it is frequently used by analysts, investors and other interested parties in the midstream industry to evaluate a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending on accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. DT Midstream uses Adjusted EBITDA to assess the company’s performance by reportable segment and as a basis for strategic planning and forecasting.

Distributable Cash Flow (DCF) is calculated by deducting earnings from equity method investees, depreciation and amortization attributable to noncontrolling interests, cash interest expense, maintenance capital investment (as defined below), and cash taxes from, and adding interest expense, income tax expense, depreciation and amortization, certain items we consider non-routine and dividends and distributions from equity method investees to, Net Income Attributable to DT Midstream. Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings. We believe DCF is a meaningful performance measurement because it is useful to us and external users of our financial statements in estimating the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and making maintenance capital investments, which could be used for discretionary purposes such as common stock dividends, retirement of debt or expansion capital expenditures.

In this release, DT Midstream provides 2026 and 2027 Adjusted EBITDA guidance. The reconciliation of net income to Adjusted EBITDA as projected for full-year 2026 and 2027 is not provided. DT Midstream does not forecast net income as it cannot, without unreasonable efforts, estimate or predict with certainty the components of net income. These components, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these components could significantly impact such financial measures. At this time, DT Midstream is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, DT Midstream is not able to provide a corresponding GAAP equivalent for Adjusted EBITDA.

Forward-looking Statements

This release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, business prospects, outcomes of regulatory proceedings, market conditions, and other matters, based on what we believe to be reasonable assumptions and on information currently available to us.

Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident,” “may,” and other words of similar meaning. The absence of such words, expressions or statements, however, does not mean that the statements are not forward-looking. In particular, express or implied statements relating to future earnings, cash flow, results of operations, uses of cash, tax rates and other measures of financial performance, future actions, conditions or events, potential future plans, strategies or transactions of DT Midstream, and other statements that are not historical facts, are forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of DT Midstream including, but not limited to, the following: changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure constraints and changes in competition; changes in global trade policies and tariffs; global and domestic supply chain disruptions; actions taken by third-party operators, producers, processors, transporters and gatherers; changes in expected production from Expand Energy and other third parties in our areas of operation; demand for natural gas gathering, transmission, storage, transportation, sand mining, and water services; the availability and price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully and timely implement our business plan; our ability to complete organic growth projects on time and on budget; our ability to finance, complete, or successfully integrate acquisitions; our ability to realize the anticipated benefits from acquisitions and our ability to manage the risks associated with acquisition activity; the price and availability of debt and equity financing; restrictions in our existing and any future credit facilities and indentures; the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyber attacks on United States critical infrastructure; changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; operating hazards, environmental risks, and other risks incidental to gathering, storing and transporting natural gas; geologic and reservoir risks and considerations; natural disasters, adverse weather conditions, casualty losses and other matters beyond our control; the impact of outbreaks of illnesses, epidemics and pandemics, and any related economic effects; the impacts of geopolitical events, including the conflicts in Ukraine and the Middle East; labor relations and markets, including the ability to attract, hire and retain key employee and contract personnel; large customer defaults; changes in tax status, as well as changes in tax rates and regulations; the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act and the One Big Beautiful Bill Act; changes in environmental laws, regulations or enforcement policies, including laws and regulations relating to pipeline safety, climate change and greenhouse gas emissions; changes in laws and regulations or enforcement policies, including those relating to construction and operation of new interstate gas pipelines, ratemaking to which our pipelines may be subject, or other non-environmental laws and regulations; our ability to qualify for federal income tax credits; ability to develop low carbon business opportunities and deploy greenhouse gas reducing technologies; changes in insurance markets impacting costs and the level and types of coverage available; the timing and extent of changes in commodity prices; the success of our risk management strategies; the suspension, reduction or termination of our customers’ obligations under our commercial agreements; disruptions due to equipment interruption or failure at our facilities, or third-party facilities on which our business is dependent; the effects of future litigation; and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2025 and our reports and registration statements filed from time to time with the SEC.

The above list of factors is not exhaustive. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under the section entitled “Risk Factors” in our Annual Report for the year ended December 31, 2025, filed with the SEC on Form 10-K and any other reports filed with the SEC. Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put undue reliance on any forward-looking statements.

Any forward-looking statements speak only as of the date on which such statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

DT Midstream, Inc.
Reconciliation of Reported to Operating Earnings (non-GAAP, unaudited)

                     Three Months Ended   March 31, December 31,    2026  2025   Reported Earnings Pre-tax Adjustments Income
Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income
Taxes (1) Operating Earnings   (millions) Adjustments  $— $—     $— $—   Net Income Attributable to DT Midstream$130 $— $— $130 $111 $— $— $111                     Three Months Ended   March 31, March 31,    2026  2025   Reported Earnings Pre-tax Adjustments Income
Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income
Taxes (1) Operating Earnings   (millions) Adjustments   —  —      —  —   Net Income Attributable to DT Midstream$130 $— $— $130 $108 $— $— $108                   (1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments
                                      DT Midstream, Inc.
Reconciliation of Reported to Operating Earnings per diluted share (1) (non-GAAP, unaudited)

                     Three Months Ended   March 31, December 31,    2026  2025   Reported Earnings Pre-tax Adjustments Income
Taxes (2) Operating Earnings Reported Earnings Pre-tax Adjustments Income
Taxes (2) Operating Earnings   (per share) Adjustments  $— $—     $— $—   Net Income Attributable to DT Midstream$1.27 $— $— $1.27 $1.08 $— $— $1.08                     Three Months Ended   March 31, March 31,    2026  2025   Reported Earnings Pre-tax Adjustments Income
Taxes (2) Operating Earnings Reported Earnings Pre-tax Adjustments Income
Taxes (2) Operating Earnings   (per share) Adjustments   —  —      —  —   Net Income Attributable to DT Midstream$1.27 $— $— $1.27 $1.06 $— $— $1.06                   (1) Per share amounts are divided by Weighted Average Common Shares Outstanding — Diluted, as noted on the Consolidated Statements of Operations
 (2) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments
                                         DT Midstream, Inc.
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP, unaudited)         Three Months Ended  March 31, December 31, March 31,   2026   2025   2025 Consolidated(millions)Net Income Attributable to DT Midstream$130  $111  $108 Plus: Interest expense 40   41   40 Plus: Income tax expense 36   40   35 Plus: Depreciation and amortization 69   67   63 Plus: EBITDA from equity method investees (1) 78   70   73 Less: Interest income (1)  —   (1)Less: Earnings from equity method investees (43)  (37)  (37)Less: Depreciation and amortization attributable to noncontrolling interests (1)  (1)  (1)Other —   2   — Adjusted EBITDA$308  $293  $280        (1) Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:
  Three Months Ended  March 31, December 31, March 31,   2026   2025   2025   (millions)Earnings from equity method investees$43  $37  $37 Plus: Depreciation and amortization attributable to equity method investees 21   19   22 Plus: Interest expense attributable to equity method investees 14   14   14 EBITDA from equity method investees$78  $70  $73                       DT Midstream, Inc.
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Pipeline Segment (non-GAAP, unaudited)         Three Months Ended  March 31, December 31, March 31,   2026   2025   2025 Pipeline(millions)Net Income Attributable to DT Midstream$108  $93  $92 Plus: Interest expense 14   13   13 Plus: Income tax expense 30   34   30 Plus: Depreciation and amortization 29   28   28 Plus: EBITDA from equity method investees (1) 78   70   73 Less: Interest income (1)  —   (1)Less: Earnings from equity method investees (43)  (37)  (37)Less: Depreciation and amortization attributable to noncontrolling interests (1)  (1)  (1)Adjusted EBITDA$214  $200  $197        (1) Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:
  Three Months Ended  March 31, December 31, March 31,   2026   2025   2025   (millions)Earnings from equity method investees$43  $37  $37 Plus: Depreciation and amortization attributable to equity method investees 21   19   22 Plus: Interest expense attributable to equity method investees 14   14   14 EBITDA from equity method investees$78  $70  $73                       DT Midstream, Inc.
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Gathering Segment (non-GAAP, unaudited)         Three Months Ended  March 31, December 31, March 31,   2026  2025  2025 Gathering(millions) Net Income Attributable to DT Midstream$22 $18 $16 Plus: Interest expense 26  28  27 Plus: Income tax expense 6  6  5 Plus: Depreciation and amortization 40  39  35 Other —  2  — Adjusted EBITDA$94 $93 $83                      DT Midstream, Inc.
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP, unaudited)           Three Months Ended   March 31, December 31, March 31,    2026   2025   2025  Consolidated(millions) Net Income Attributable to DT Midstream$130  $111  $108  Plus: Interest expense 40   41   40  Plus: Income tax expense 36   40   35  Plus: Depreciation and amortization 69   67   63  Less: Earnings from equity method investees (43)  (37)  (37) Less: Depreciation and amortization attributable to noncontrolling interests (1)  (1)  (1) Plus: Dividends and distributions from equity method investees 56   48   48  Less: Cash interest expense —   (76)  —  Less: Cash taxes (2)  (2)  2  Less: Maintenance capital investment (1) (11)  (29)  (8) Distributable Cash Flow$274  $162  $250          (1) Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings.
                

The Iran War has turned energy stocks from laggards to leaders, but the rally in this sector appears to be getting a little long in the tooth.

Now that AI and semiconductors have retaken control of the market, the energy sector is looking vulnerable, and many stocks are triggering overbought signals.

Today, we'll look at five stocks that are flashing overbought signals on key technical indicators, such as Bollinger Bands, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicator.

Each of these technical tools measures momentum in a different fashion, and they are frequently used together to identify momentum changes (or continuation patterns).

Here are five high-flying energy stocks that look ripe for profit-taking.

Earlier this year, Bloom Energy (NYSE:BE) looked like it was struggling to repeat its 2025 performance. The stock gained nearly 300% last calendar year, but spent most of 2026 trading in a tight range between $130 and $160.

But when the market turned in late March, Bloom Energy's stock got back on the bullish train. BE shares have more than doubled in the last month alone, and now are up more than 200% year-to-date (YTD).

The company absolutely crushed its Q1 2026 earnings report on April 28, posting EPS and revenue figures well above analysts' projections with total sales up more than 130% year-over-year (YOY). Management also now expects full-year 2026 guidance of $3.4 to $3.8 billion, following record revenue of over $2 billion in 2025.

Bloom Energy's partnership with Brookfield to provide power to data centers provides it with durable, sustainable revenue for years to come, thereby maintaining the long-term growth story.

However, the stock is looking incredibly overbought following its impressive month, and investors are getting signals that it’s time to take profits. The share price has reached the upper Bollinger Band following a very volatile few trading sessions, and the RSI reading of 77 shows a highly susceptible rally. 

Kodiak Gas Services Inc.The stock has gone parabolic in the first four months of 2026, returning more than 80% YTD thanks to soaring energy prices and domestic demand. But a quick look under the hood shows a company that still needs to justify its current valuation.

The stock trades at nearly 80 times earnings, and the company has missed EPS projections in six of the last seven quarters. Kodiak Gas Services is scheduled to report its Q1 2026 results on May 15, and another miss after this stock run-up could result in a swift reversal.

KGS shares are trading near the upper Bollinger Band, and the RSI is deep into overbought territory at 82. With a pricey valuation, overbought technicals, and another earnings report on deck, taking profits here is likely a wise decision.

Tenaris S.A.Tenaris (NYSE:TS) is a Luxembourg-based manufacturer of steel pipes and tubes used in a variety of industrial applications, but its products are especially prominent in the oil and gas industry.

The company has a market cap of $32 billion and generated nearly $12 billion in sales in 2025. Despite being a consistent earnings winner with a reasonable valuation, Tenaris shares are looking very overbought at the moment and could be hit by profit-taking in the near future.

The stock had been a steady but unspectacular compounder, growing from $20 per share to $40 per share between 2022 and 2026. But now the stock has soared from $40 to $63 in just 4 months, despite little change in the company's earnings growth trajectory. 

Tariff relief is likely a significant driver of the 2026 rally, as Tenaris's products faced stiff import tariffs under the Trump administration's previous policies. While the new Section 232 tariffs have revived some of these taxes, the stock's relief rally continues.

However, technical signals indicate waning momentum in the uptrend. The Bollinger Bands and RSI both highlight an overextended rally, and the MACD indicator shows that buying pressure is beginning to weaken. Tenaris reports earnings on May 5, and will likely need to crush estimates to keep this momentum going.

DT Midstream Inc.However, management only reaffirmed its full-year 2026 guidance and also decided to keep the dividend payout flat despite record quarterly revenue. Analysts at Barclays raised their price target to $143 following the earnings release, but this is still below the current market price.

The post-earnings move actually took the stock price outside the upper range of the Bollinger Bands, which is often considered a bearish reversal signal. An overbought RSI also confirms the potential trend shift, and a pullback to the $135 area wouldn't be surprising from here.

Enerflex Ltd.The Bollinger Bands have widened drastically during the stock's run-up, highlighting the volatility of the uptrend. A large gap between the deviations is often a red flag that reversion to the mean is coming, and the RSI is extremely high, over 77.

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Key Takeaways: On a year-over-year basis, 96.0% of the Alerian Midstream Energy Index (AMNA) by weighting have grown their dividends. MLPs largely drove sequential growth in payouts for 1Q26, while most corporations kept their dividends
steady. No AMNA constituent has cut its regular dividend since July 2021. Midstream indexes have seen a strong 2026 thus far, generating robust total returns of over 20% year-to-
date through May 15 that handily outpace the broader market. For the first quarter of 2026, most of the constituents in the broad Alerian Midstream Energy Index (AMNA) maintained their payouts, with a handful of MLPs and select C-Corps providing sequential growth. The vast majority of midstream companies have increased their dividends within the last year, with further growth expected this year. Learn more below about 1Q26 MLP/midstream dividends and why dividend growth is just one of multiple tailwinds for this space.

1Q26 Payouts: Notable Increases From MLPs & C-Corps Dividend announcements for 1Q26 included increases from steady growers, as well as a few notable hikes from names that typically increase their payouts once a year. The largest sequential percentage increase was from C-Corp Targa Resources (TRGP), which raised its dividend by 25% to $1.25 per share, consistent with management’s guidance from November 2025. Notably, DT Midstream (DTM) increased its 1Q26 dividend by 7.3% as announced in February. Pembina (PPL CN) and Kinder Morgan (KMI), which typically raise their payouts annually for the first quarter, increased their dividends by 3.5% and 1.7%, respectively.

Sunoco (SUN) had one of the more notable increases among MLPs for 1Q26, raising its quarterly distribution by 6.25% sequentially. The increase, comprising a one-time 5% step-up and a 1.25% quarterly increase, aligns with the company’s target of at least 5% multi-year distribution growth. Besides SUN, other sequential increases came from MLPs with a track record of growing their payout each quarter: Energy Transfer (ET), Hess Midstream (HESM), Global Partners (GLP), and Delek Logistics Partners (DKL). Western Midstream (WES) grew its payout 2.2% and Star Group, which is only in the Alerian MLP Index (AMZ), increased by 6.8%.

The pie charts below show quarter-over-quarter changes to dividends for AMNA, AMZ, and the Alerian MLP Infrastructure Index (AMZI) by comparing 1Q26 payouts to those made for 4Q25. To be clear, 1Q26 dividends refer to dividends paid in 2Q26 based on operational performance in 1Q26.

Year-Over-Year Comparison Highlights Widespread Dividend Growth With many companies only increasing their payouts once each year, a year-over-year comparison can provide a clearer picture of dividend trends. The pie charts below show a clear bias towards rising payouts. Over 80% of AMZ and almost 90% of AMZI by weighting have increased their distributions within the last year. For AMNA, 96.0% of the index by weighting has grown payouts relative to 1Q25. Looking at the absolute numbers, the majority of constituents in each index have grown their dividends.

Midstream companies that prefer annual hikes typically make those announcements for 4Q or 1Q payouts. That could lead to a quieter 2Q26; however, companies are expected to continue prioritizing dividend growth. MPLX (MPLX) management expects to continue 12.5% annual distribution growth for 2026 and 2027. Cheniere (LNG) is committed to growing dividends by ~10% annually through the end of the decade. Additionally, both Hess Midstream (HESM) and Sunoco (SUN) are targeting multi-year distribution growth of at least 5% annually, with HESM’s outlook extending through 2028. EBITDA growth (read more) and ongoing free cash flow generation (read more) continue to drive a constructive outlook for midstream/MLP payouts.

Midstream/MLPs Enjoying Strong Performance in 2026 Dividend growth has been just one tailwind for the midstream/MLP space this year. Energy equities have seen broad strength with oil prices rallying and ongoing supply disruptions in the Middle East. Midstream also continues to benefit from the tailwinds related to growing natural gas demand in North America, with companies enjoying robust opportunities for natural gas infrastructure. The space broadly saw a strong 1Q26 earnings season, with many companies beating expectations and raising their financial guidance for the year.

Year-to-date through May 15, AMNA has gained 27.6%, AMZ has gained 25.1%, and AMZI is up 25.0% on a total-return basis. Even with these gains, yields remain healthy, particularly for the MLP indexes AMZ and AMZI. As of May 15, AMZ and AMZI were yielding 6.4% and 6.8% respectively, while AMNA was yielding 4.2%. Energy infrastructure’s capital appreciation, paired with the compelling, stable income it provides, has delivered robust returns so far this year.

Bottom Line Midstream/MLP dividend growth remains a reliable tailwind, reinforced by 1Q26 announcements. Consistent dividend growth supports generous yields and provides attractive returns for investors. Complementing this payout growth are equity repurchases, which will be discussed in detail next week. Stay tuned.

Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.

For more news, information, and analysis, visit the Energy Infrastructure Content Hub

Related Research:

Broad-Based Growth in 4Q25 Midstream/MLP Dividends

2026 EBITDA Guidance Reinforces Midstream Stability

3Q25 Midstream/MLP Dividends: Payouts Stay Strong

Breaking Down MLP Distribution Outlooks With AMZI

Midstream/MLP Free Cash Flow Yields Still Strong

2Q25 MLP/Midstream Dividend Recap: MLPs Deliver Growth

AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMZ is the underlying index for the JPMCFC Alerian MLP Index ETN (AMJB), the ETRACS Alerian MLP Index ETN Series B (AMUB), and the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR). 

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMJB, AMUB, MLPR, AMLP, and MLPB, for which it receives an index licensing fee. However, AMJB, AMUB, MLPR, AMLP, and MLPB are not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of AMJB, AMUB, MLPR, AMLP, and MLPB.

CARLSBAD, Calif.--(BUSINESS WIRE)-- #5G--MaxLinear's new Trinity platform helps operators scale 5G backhaul with cloud management, AI-based optimization, and up to 10Gbps performance.

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MaxLinear is undergoing a major transformation as high‑margin AI optical products—Keystone, Rushmore, and Washington—begin replacing its legacy broadband revenue base. Management commentary suggests multiple product ramps across several hyperscalers, while current analyst estimates appear to model only a single program. The key milestones to watch are a Q2 step‑function in optical revenue, gross margin expansion toward the high end of guidance, and continued diversification across hyperscalers through module‑maker wins.

CARLSBAD, Calif.--(BUSINESS WIRE)-- #broadband--MaxLinear and Edgecore collaborate to deliver scalable, intellegent edge network infrastructure for next-generation enterprise and SMB applications.

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GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.

Key Takeaways MaxLinear and Edgecore Networks formed an alliance to accelerate AI-driven networking solutions.MXL's platform supports XGS-PON, Ethernet and Wi-Fi with sustained 10Gbps throughput.MaxLinear and Edgecore aim to deliver scalable, intelligent and reliable edge networks. The enterprise campus and edge networking market is expected to grow approximately 7%-11% annually, driven by increasing data demands, device proliferation and the rise of localized intelligence. Against this backdrop, MaxLinear, Inc.’s (MXL - Free Report) latest strategic alliance is viewed as a powerful alignment of silicon innovation and system-level expertise. The company teamed up with Edgecore Networks to accelerate the development of AI-driven networking solutions for enterprise and service provider markets.

As part of the collaboration, Edgecore brings industry-leading open infrastructure, including its Full Stack OpenWiFi solution, OpenLAN switching and gateway platforms, and cloud-based management via CloudSDK. Its Edge AI Box platform further extends compute capabilities to the network edge, enabling real-time intelligence and AI-powered service delivery.

MaxLinear’s multi-interface WAN solutions platform — consisting of XGS-PON, Ethernet and Wi-Fi — enables uninterrupted operations with sustained 10Gbps throughput across all packet sizes to meet the performance requirements of data-intensive applications. The platform’s integrated hardware acceleration engines provide line-rate encryption and intrusion prevention, ensuring strong security without compromising performance.

Both partners share a similar view of the convergence of AI and high-speed connectivity at the network edge. MaxLinear’s technology roadmap is aligned with this trend, enabling operators and enterprises to address evolving next-generation network demands, driven by the migration of AI workloads closer to the user. For Edgecore Networks, this partnership marks a natural next step.

Together, the companies seek to deliver an integrated ecosystem that enables enterprises and service providers to deploy scalable, intelligent and highly reliable networks.

MXL’s Peer UpdatesBroadcom Inc. (AVGO - Free Report) announced its collaboration with Samsung Electronics Co., Ltd. on a new, broadband-optimized reference platform for the global fixed wireless access (FWA) market, integrating Broadcom's BCM6776 Wi-Fi 8 System-on-Chip (SoC) with Samsung's B1320 5G Modem. Designed for mass-market scalability, the platform provides a high-performance, cost-competitive blueprint, enabling mobile operators to offer fiber-level broadband to accelerate service innovation and ecosystem growth.

Marvell Technology, Inc. (MRVL - Free Report) introduced Marvell Teralynx T100, the industry’s first 102.4 Tbps switch silicon purpose-built for the AI era. In contrast to the legacy switching platforms designed for traditional enterprise and cloud data centers, the Teralynx T100 was architected from the ground up for AI, enabling the industry’s lowest power consumption and lowest latency at this bandwidth tier to address critical bottlenecks in today’s large AI clusters.

MXL’s Price Performance, Valuation & EstimatesYear to date, MaxLinear shares have surged 394.7% compared with the industry’s 65.4% growth. 

Image Source: Zacks Investment Research

In terms of valuation, MXL trades at a forward, five-year Price/Sales (P/S) of 10.94X compared with its 2.81X median and the industry average of 10.69X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MaxLinear’s 2026 and 2027 earnings has shown an upward trend for the past 60 days.

Image Source: Zacks Investment Research

MaxLinear currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways MXL shares have surged 353.3% YTD, far outpacing industry and broader market gains.MXL Q1 revenues rose 43% YoY, with infrastructure surging over 130% and earnings beating estimates.MXL growth is driven by optical data center demand, PAM4 DSP ramps, and a growing backlog. Following a steep decline in 2025, MaxLinear (MXL - Free Report) has staged a remarkable recovery this year. Shares of the company have rallied 353.3% year to date, far above its industry’s 57.7% growth and the broader sector’s 16.2% rise. The S&P 500 composite has returned 8.2% in the same time frame. MaxLinear’s performance also compares favorably to that of its peers MACOM Technology Solutions Inc. (MTSI - Free Report) and Broadcom Inc. (AVGO - Free Report) , whose shares have gained 110.9% and 14.6%, respectively.

MXL Stock’s YTD Performance
Image Source: Zacks Investment Research

At current levels, MXL stock is trading above its 90-day and 200-day moving averages, signaling a sustained bullish trend.

MXL Technical Indicator
Image Source: Zacks Investment Research

The company’s investments in data center, optical interconnects, wireless infrastructure, PON broadband access, Wi-Fi 7, Ethernet and storage accelerator products are helping expand customer traction and content opportunities, supporting continued growth in 2026. CEO Kishore Seendripu said that the first quarter marked the beginning of a multi-year growth phase for the company, driven by accelerating momentum in optical data center connectivity.

MaxLinear’s Q1 HighlightsIn the first quarter of 2026, the company’s revenues grew 43% year over year and exceeded the Zacks Consensus Estimate by 1.6%. Growth was driven by strong execution, increasing adoption of newer products, improved visibility and bookings, and ongoing strength across infrastructure programs. Infrastructure was a stand-out in the quarter, growing more than 130% to become the company’s largest revenue category, led by robust production ramps in optical data center-oriented platforms.

On the margins side, MaxLinear posted adjusted gross margin of 59.5%, up 40 basis points year over year. Adjusted operating income was 16% of net revenues, reflecting a sharp improvement from a loss of 2% in the year-ago quarter. This strength also translated into the bottom-line, with adjusted earnings per share (EPS) of 22 cents, surpassing the consensus estimate by 22.2%. The result marked a significant improvement from a reported loss of 5 cents per share in the year-ago quarter.

The company exited the quarter with approximately $89.9 million in cash, cash equivalents and restricted cash, after making a substantial prepayment for wafers to support rising demand for the data center low-node geometry products. Management noted an increasing order backlog building in the second half of the year.

What’s Shaping MaxLinear’s Growth Story?With hyperscale customers rapidly scaling AI-centric architectures, growth momentum in the company’s optical data center business is likely to continue. The Keystone PAM4 DSP optical transceiver platform is ramping up at major hyperscale customers across the United States and Asia, supporting 400-gig and 800-gig deployments, both for scale-up and scale-out applications. This is expected to drive a significant increase in data center revenues beginning in the second quarter.

MaxLinear’s next phase of data center optical architectures is set to be backed by the Rushmore 200 gigabit per lane PAM4 DSP family, slated to begin production ramps in late 2026. Beyond PAM4-based optical and electrical interconnects, the company secured its first XGS-PON design win at a U.S. hyperscale data center through a Tier 1 OEM partner and also won USB bridge controller designs with two major hyperscalers for rack-level AI system management.

Within infrastructure, the Panther hardware storage accelerator SoC family continues to gain design win traction with Tier 1 network appliance and cloud service providers. Based on current engagement, MaxLinear expects storage accelerator revenues to at least double in 2026 compared with 2025 levels. In addition, higher carrier capital expenditure is expected to drive sustained wireless infrastructure demand through 2026 and beyond, as the need for cloud and edge AI functionality keeps growing. 

MaxLinear’s Sierra single-chip radio SoCs are now deployed with multiple North American operators as 5G networks continue to evolve. In broadband and connectivity, the company is deploying its single-chip fiber PON and Wi-Fi 7 gateway platforms with a second major Tier 1 service provider in North America, with additional ramps expected in Europe later this year.

The company also recently introduced the Trinity platform, reinforcing its capabilities in the highly integrated system-on-chip solutions for wireless backhaul. It is designed to help operators expand 5G coverage while lowering deployment and operational costs through automation and real-time network intelligence.

How Valuation Metrics Look for MXLBased on the forward five-year, price/sales (P/S) ratio, MXL trades at 10.02, higher than its own median but slightly below the industry average. A premium valuation usually signals strong market optimism surrounding a company’s growth prospects. Meanwhile, MACOM currently has a P/S of 18.07X while Broadcom is at 13.35X.

MXL’s 5-Year P/S
Image Source: Zacks Investment Research

ConclusionMaxLinear’s strong focus on execution and innovation is shaping 2026 into a pivotal year. This is already evident with the company’s first-quarter earnings and revenues beating analyst expectations. Year to date, the stock’s performance has surpassed broader benchmarks and close peers, with accelerating momentum in its optical data center business providing support. Several other high-value products also remain in the early stages of their market ramp, providing additional growth opportunities. Given its discounted valuation relative to peers and the broader industry, we believe MaxLinear presents an attractive investment opportunity for investors seeking exposure to the semiconductor sector.

MXL carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways MXL launches Trinity platform enabling up to 10Gbps wireless backhaul for 5G networks.MaxLinear's Trinity uses URX850 SoC and cloud-native APIs to enable AI-optimized, automated backhaul.MXL Trinity is available now with URX850 and a backhaul software kit for OEM customers. As global mobile data consumption continues to rise and 5G networks expand into underserved regions, operators are increasingly seeking wireless backhaul solutions that are easier to deploy, lower in cost and more autonomously managed. Legacy approaches often rely on manual provisioning and limited visibility, resulting in slower rollouts and higher costs. Against this backdrop, MaxLinear (MXL - Free Report) recently introduced the Trinity platform, a carrier-grade solution offering bidirectional wireless backhaul speeds of up to 10Gbps. 

Trinity is based on the company’s URX processor family. It pairs the URX850 SoC with a purpose-built cloud-native API framework that integrates with MaxLinear’s millimeter and microwave modems. The platform enables cloud-managed, AI-optimized backhaul infrastructure, which means that operators can expand 5G coverage while simultaneously lowering deployment and operational costs through automation and real-time network intelligence.

The launch also positions MaxLinear to capitalize on the growing millimeter wave technology opportunity. As stated by the company, the market is expected to expand from roughly $3 billion in 2024 to more than $7 billion by 2029, representing about 20% annual growth, driven in part by the demand for scalable, cloud-managed and AI-enabled telecom infrastructure.

For the company’s Original Equipment Manufacturercustomers, Trinity represents a major advancement as it now handles functions that previously required multiple components, including switching and quality-of-service (QoS) functionality, aggregation of multiple wireless links, high-speed data encryption and precise timing for carrier-grade networks.

At present, the Trinity platform is available with URX850, and the associated backhaul software kit is available now. OEM products based on Trinity are expected to launch in the first half of 2027.

Updates From MXL Peers — QRVO & QCOMQorvo (QRVO - Free Report) has introduced an X-band radar front-end solution that enables defense system designers to achieve higher performance without increasing size, weight or prime power. Designed for modern phased array and multifunction sensors, the Qorvo QPF5012 combines transmit power, efficiency and receive sensitivity in a single compact module, addressing key challenges in next-generation radar design.

Qualcomm Technologies, Inc. (QCOM - Free Report) recently introduced the Snapdragon C Platform, a new entry-tier processor designed to make modern personal computing more accessible to students, families and small businesses. The platform is engineered for power-efficient everyday computing experiences people rely on in entry-level laptops without sacrificing portability or all-day battery life.

The Zacks Rundown for MXL StockOver the past year, MaxLinear shares have surged 483% compared with the industry’s 78% growth. 

Image Source: Zacks Investment Research

In terms of valuation, MXL trades at a forward, five-year Price/Sales (P/S) of 9.09X compared with its 2.74X median and the industry average of 10.30X. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MaxLinear’s 2026 and 2027 earnings has been trending upward for the past 60 days. 

Image Source: Zacks Investment Research

MaxLinear currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PLANTATION, Fla.--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, has released its financial results for the first quarter of fiscal year 2026 ended May 3, 2026. Fiscal Q1 2026 Highlights: Net sales of $3.36 billion increased 7.7 percent year over year Gross margin of 30.1 percent increased 50 basis points year over year Net income of $94.8 million, including share-based compensation expense and related taxes of $73.4 million N.

June 10, 2026 Tuesday's MarketsS&P 500
7,387 (-0.26%)Nasdaq
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50,872 (+0.17%)Bitcoin
$62,003 (-1.94%)

Source: Image created by Jester AI.

1. Casey's Posts EPS Jump, Predicts Slowing Growth Casey's General Stores (CASY 1.25%) – recommended in Stock Advisor by Team Rule Breakers as a 'Cautious' investment – reported a record fiscal year with fourth-quarter earnings yesterday, with EPS soaring 66.2% year over year (YoY). The company raised its quarterly dividend 14%, for the 27th consecutive year of increases.

"Our team closed out the three-year strategic plan on an extremely high note": CEO Darren Rebelez also spoke of "$714 million of net income and nearly $1.5 billion in EBITDA." Management expects profit growth to moderate in the current fiscal year, guiding for 2% to 5% growth in same-store inside sales. The stock gained around 1% in pre-market trading. "Casey's has a great business model that really, in many ways, it couldn't be simpler": Fool contributing analyst Dan Caplinger recently noted the simplicity of Casey's business model: "Sell gas, sell pizza, sell some other convenience store goods, and focus on areas where there just aren't going to be that many alternatives." 2. Apple Cozies up With Google Apple (AAPL 1.27%) has announced plans to collaborate with Alphabet's (GOOG 0.47%) Google and Nvidia (NVDA 0.44%) to expand its Private Cloud Compute (PCC). Currently restricted to in-house data centers, the move will expand Apple's AI offerings to run on Google Cloud. Nvidia, Intel (INTC +2.06%), and Google silicon will provide the power.

"PCC set a new bar for AI privacy in the cloud": Stressing customer data security, an Apple blog post told us PCC on Google Cloud "incorporates PCC's exceptional security and privacy properties at every stage." "Apple is looking more dependent than ever on Google": Parmy Olson at Bloomberg highlighted Apple's deepening relationship with its major competitor, suggesting "In some respects Apple is becoming a wrapper around Google's capabilities." The new Gemini-powered Siri, meanwhile, will not initially launch in the European Union or China due to regulatory issues. 3. Volatility Hits Nasdaq and Chip Stocks S&P 500 futures dipped close to 1% this morning as geopolitical stability fractured in the Middle East, with Nasdaq futures down more than 1.4%. This follows a volatile session for chip stocks yesterday, as anticipation of Friday's SpaceX IPO builds. By early afternoon, the Philadelphia Semiconductor Index had slumped nearly 9% on the day, before a late rally saw tech stocks recover much of their early losses.

A "sign of excessive speculation": In a recent client note from head of U.S. equity Savita Subramanian, strategists at Bank of America (BAC +0.67%) pointed to stocks on high P/E ratios significantly outperforming lower P/E stocks, noting 7 of their 10 bear-market signals have been triggered in the past few months. "Investors are more pessimistic after their home country loses in the World Cup knockout round": Here's one for the soccer fans, as Mark Hulbert at MarketWatch observed that if a country loses in the elimination stage, its stock market dips the next day on average. The USMNT takes on Paraguay on Friday... SpaceX IPO day! 4. Today's Earnings You Won't Want to Miss Oracle (ORCL 1.59%) is due to report fourth-quarter earnings after today's closing bell, in a week that saw OpenAI file documentation ahead of its planned IPO. The company hasn't decided on timing, but its reliance on Oracle Cloud Infrastructure gives investors something extra to watch.

Cloud Infrastructure revenue growth of 91% expected: Ambitious Wall Street guidance suggests Oracle will build on Q3 cloud revenue growth of 44% YoY, when management set a full-year revenue target of $90 billion. Chewy (CHWY 2.61%) –recommended by Team Rule Breakers – reported 7.7% net sales growth YoY in Q1 this morning, with nearly 200,000 net customer additions, and saw gross and net margins improve. The stock rose over 5% in a pre-market response. 5. Today's Take: Is It a Bargain – Or Just Cheap?

A cheap stock is when the investment thesis relies on other investors to pay a higher multiple. A stock is a bargain when the management team is actively converting the cheap valuation into an opportunity through share repurchases, asset sales, spinoffs, or even an outright sale of the company.-- Anthony Schiavone

I tend to start out assuming the market's got it right and the stock is cheap for a reason. The key is figuring out the reason. Is it company-specific or more market-related? Does leadership continue to move the goal posts? I look to identify the catalyst(s) that will turn things around.-- Jason Moser Team Rule Breakers

6. Your Take Which, if any, positions have you sold all or some of from your portfolio in the last month, and why?

Share with friends and family, or become a member to hear what your fellow Fools are saying!

This image and 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. Bank of America is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Alphabet, Apple, Chewy, Intel, Nvidia, and Oracle. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy.

Chewy (CHWY - Free Report) came out with quarterly earnings of $0.43 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +0.51%. A quarter ago, it was expected that this online pet store would post earnings of $0.28 per share when it actually produced earnings of $0.27, delivering a surprise of -3.57%.

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

Chewy, which belongs to the Zacks Internet - Commerce industry, posted revenues of $3.36 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $3.12 billion. The company has topped consensus revenue estimates four times over the last four quarters.

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

Chewy shares have lost about 38.3% since the beginning of the year versus the S&P 500's gain of 7.9%.

What's Next for Chewy?While Chewy 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 Chewy 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 #4 (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 $0.40 on $3.36 billion in revenues for the coming quarter and $1.61 on $13.62 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 39% 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 broader Zacks Retail-Wholesale sector, Levi Strauss (LEVI - Free Report) , has yet to report results for the quarter ended May 2026.

This jeans maker is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.

Levi Strauss' revenues are expected to be $1.52 billion, up 4.8% from the year-ago quarter.

For the quarter ended April 2026, Chewy (CHWY - Free Report) reported revenue of $3.36 billion, up 7.7% over the same period last year. EPS came in at $0.43, compared to $0.35 in the year-ago quarter.

The reported revenue represents a surprise of +0.15% over the Zacks Consensus Estimate of $3.35 billion. With the consensus EPS estimate being $0.43, the EPS surprise was +0.51%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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

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

Active customers: 21,497 compared to the 21,612 average estimate based on six analysts.Net sales per active customer: $597.00 compared to the $597.19 average estimate based on four analysts.Net Sales- Hardgoods: $394.8 million compared to the $384.06 million average estimate based on three analysts. The reported number represents a change of +15.4% year over year.Net Sales- Consumables: $2.29 billion versus $2.31 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change.View all Key Company Metrics for Chewy here>>>

Shares of Chewy have returned -10.9% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Pet retail has been written off as a low‑growth corner of consumer spending, but the market is missing a major shift in how recurring revenue and logistics efficiency are reshaping the industry. Chewy's latest quarter shows a clear break from the past: stabilizing demand, rising Autoship penetration, and disciplined cost control are finally translating into real operating leverage. With margins inflecting, EBITDA scaling, and the stock still priced for stagnation, Chewy now offers a mispriced setup where improving fundamentals aren't reflected in today's valuation.

Chewy, Inc. (CHWY) Q1 2027 Earnings Call Transcript

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Chewy (CHWY - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Chewy currently has an average brokerage recommendation (ABR) of 1.52, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.52 approximates between Strong Buy and Buy.

Of the 27 recommendations that derive the current ABR, 19 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70.4% and 7.4% of all recommendations.

Brokerage Recommendation Trends for CHWY

Check price target & stock forecast for Chewy here>>>

While the ABR calls for buying Chewy, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in CHWY?Looking at the earnings estimate revisions for Chewy, the Zacks Consensus Estimate for the current year has declined 2.4% over the past month to $1.61.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Chewy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Chewy with a grain of salt.

Chewy (CHWY 2.61%) stock has been stumbling since the company reported its fiscal first-quarter 2026 earnings on June 10. Chewy reported gains in revenue, earnings per share, and net margin, but the stock still slipped after guidance projected a challenging sales environment.

Then Chewy continued its fall today following a series of analyst downgrades, losing another 5%. The fall is the latest in a series of declines in Chewy stock, which is now down 43% this year and 84% off its all-time highs set during the COVID-19 pandemic.

Considering Chewy is seeing increased sales and improved margins, are investors overreacting to the guidance? Let's take a closer look at what's happening.

Image source: The Motley Fool.

About Chewy stock Chewy, based in Florida, is an online pet retailer that sells food, toys, treats, supplements, and other supplies. The business caters to the estimated 56.3 million U.S. households that own dogs and 43.1 million that own cats, providing a large base of potential customers.

But shares have been falling consistently over the last year, sinking 58.1% in the last 12 months versus a 21% gain in the benchmark S&P 500. And the drop is not industrywide: Petco Health & Wellness (WOOF +0.00%), another pet retailer with both brick-and-mortar and online sales, gained 4% in the same period.

Despite the sell-off, Chewy stock trades at a forward price-to-earnings ratio of 12.5, which is only slightly below Petco's 13.1 multiple.

CHWY PE Ratio (Forward) data by YCharts

Chewy's earnings were good, but the guidance was not Quarterly net sales for the period ending May 3 were $3.36 billion, up 7.7% from a year ago. Net income was $94.8 million, up from $62.4 million, and the company's net margin increased 80 basis points to 2.8%. Earnings were $0.43 per share, up from $0.35 per share

CEO Sumit Singh said the company was confident in its ability to gain market share and deliver more growth, but he raised red flags when speaking to analysts about challenges facing the U.S. consumer.

"Pet remains a resilient category, driven by recurring nondiscretionary needs and strong emotional attachment," he said. "At the same time, consumers are growing more discerning, driven in part by elevated fuel prices and broader macroeconomic pressures."

The company's updated guidance, he said, reflects "a more appropriately conservative view of the consumer environment and broader category growth assumptions for the balance of the year."

The company is now projecting full-year sales of $13.4 billion to $13.55 billion, representing growth of 6.3% to 7.5%. But it is projecting that customer additions will be toward the lower end of its previously stated range of 150,000 to 250,000.

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What are analysts saying about Chewy stock? Several analysts have lowered their projections for the company since Chewy's fiscal Q1 report. Morgan Stanley dropped its price target from $43 to $42, citing the weak macroeconomic environment. Bank of America maintained a "Buy" rating, but cut its price target from $33 to $31. Piper Sandler kept its "Overweight" rating, but cut its price target from $48 to $30. And MoffettNathanson downgraded the stock from a "Buy" to "Neutral," saying it can no longer maintain a bullish thesis on Chewy.

Is Chewy stock a buy? Chewy is growing its revenue base and market share, planning to operate 60 veterinary clinics by the end of the year, and using artificial intelligence to generate cost savings estimated at at least $50 million by next year. Those are all reasons why Chewy should not be overlooked.

But at the same time, management is acknowledging that customer acquisitions will be at the low end of its forecast, and that growing inflation and the possibility of higher interest rates will continue to pinch household budgets of potential customers. I am sitting on the sidelines for Chewy stock and don't expect a significant turnaround any time soon.

Key Takeaways Chewy reports Q1 sales growth of 7.7%, driven by higher Autoship customer sales.CHWY expands gross margin and EBITDA margin through ads growth, mix and operating discipline.CHWY lowers fiscal 2026 sales guidance amid softer consumer trends and cautious assumptions. Chewy, Inc. (CHWY - Free Report) reported solid first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate, and the bottom line met the same. Both metrics showed year-over-year growth.

Chewy noted that while the overall pet category remains resilient, the consumer environment has become more challenging since the company established its initial fiscal 2026 outlook. In response to these evolving conditions, management is updating its full-year sales outlook to reflect softer consumer trends and more conservative internal assumptions. As a result, shares of CHWY lost 2.1% in yesterday’s trading session.

CHWY’s Quarterly Performance: Key Metrics and InsightsChewy posted adjusted earnings of 43 cents per share, which came in line with the Zacks Consensus Estimate. The figure increased from 35 cents in the prior-year period.

The company reported net sales of $3,357.2 million, surpassing the Zacks Consensus Estimate of $3,352 million. The figure increased 7.7% from $3,116 million posted in the year-ago period.

The Autoship subscription program remained a cornerstone of Chewy’s model. Autoship customer sales grew 10.5% year over year to $2,832.6 million from $2,562.7 million, outpacing overall net sales growth. The metric represented 84.4% of total net sales.

The company ended the quarter with 21.5 million active customers, increasing 3.6% year over year. The metric missed the Zacks Consensus Estimate of $21.6 million.

Chewy’s net sales per active customer reached $597, meeting the Zacks Consensus Estimate. The metric reflects a 2.4% year-over-year increase from $583.

CHWY’s Margin & Cost PerformanceChewy’s gross profit increased 3.6% year over year to $1,011.4 million from $923.8 million. The gross margin expanded by 50 basis points (bps) year over year to 30.1%, driven primarily by continued growth in sponsored ads, favorable category mix and operating discipline.

Adjusted SG&A expenses reached $593 million in the fiscal first quarter. As a percentage of net sales, this metric declined 90 basis points year over year to 17.7%, due to lower variable costs from productivity improvements and AI-led efficiencies.

Advertising and marketing expenses for the fiscal first quarter were $206.1 million compared with $193.8 million in the prior-year period. As a percentage of sales, advertising and marketing expenses were 6.1%.

The adjusted EBITDA increased 31.3% year over year to $253.1 million from $192.7 million. The adjusted EBITDA margin increased 130 bps year over year to 7.5% from 6.2%, driven by adjusted EBITDA flow-through of greater than 25%. This level of profitability expansion reflects the structural strengthening of Chewy's earnings model.

CHWY’s Financial Health SnapshotCHWY ended the quarter with approximately $485.2 million in cash, cash equivalents and $34.9 million in marketable securities. Total shareholders’ equity stood at $424.2 million.

The company generated net cash provided by operating activities of $108.5 million and free cash flow of $70.8 million for the quarter, up 45.4% from the prior-year period. Capital expenditures were $37.7 million, consistent with ongoing investment needs across the network.

Capital allocation remained active. The company repurchased $200 million of common stock during the quarter, reflecting continued emphasis on returning cash to shareholders alongside strategic investments.

What to Expect From CHWY in the Future?Chewy revised its full-year fiscal 2026 net sales outlook, with expectations between $13.4 billion and $13.55 billion compared with the previous guidance range of $13.6 billion to $13.75 billion. The updated outlook includes expected net sales contributions of approximately $80 million from SmartPak and approximately $70 million from Modern Animal during fiscal 2026.

Adjusted EBITDA margin is expected to be in the range of 6.6-6.8%, roughly a 100 bps year-over-year increase at the midpoint. This outlook reflects a more conservative view of consumer spending patterns and category growth assumptions. Management emphasized that the change was tied to slower expected net sales per active customer expansion, driven by weaker discretionary attachment and premiumization.

For the second quarter of fiscal 2026, the company expects net sales in the range of $3.3-$3.33 billion, reflecting 6-7% year-over-year growth. The outlook assumes a generally stable operating environment and consumer trends compared with the end of the first quarter. The company continues to see healthy customer engagement, strength in Autoship and ongoing market share gains. However, near-term pressure remains on discretionary attachment and premiumization behavior. Management is also introducing quarterly adjusted EBITDA margin guidance to provide greater transparency amid varying profitability drivers.

Chewy expects second-quarter adjusted EBITDA margin to be between 6.3% and 6.4%, representing approximately 50 basis points of year-over-year expansion at the midpoint. Profitability is expected to face pressure from tougher gross margin comparisons due to prior-year nonrecurring MAP pricing benefits and elevated fuel surcharge costs. However, ongoing SG&A discipline and operational efficiency improvements are expected to support margin performance during the quarter.

This Zacks Rank #4 (Sell) stock has lost 22.3% in the past three months against the industry’s gain of 8.3%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Carvana Co. (CVNA - Free Report) operates an e-commerce platform for buying and selling used cars, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CVNA delivered a negative trailing four-quarter earnings surprise of 71.6%, on average. The Zacks Consensus Estimate for CVNA’s current financial-year sales implies growth of 35.7%, and the same for earnings implies a decline of 6.5% from the year-ago reported numbers.

Global-e Online Ltd. (GLBE - Free Report) provides a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce. It currently carries a Zacks Rank of 2 (Buy).

GLBE delivered a trailing four-quarter earnings surprise of 57%, on average. The Zacks Consensus Estimate for Global-e Online’s current financial-year sales and earnings implies growth of 30.5% and 187.2%, respectively, from the year-ago reported numbers.

Commerce.com, Inc. (CMRC - Free Report) provides an artificial intelligence-driven commerce ecosystem in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. CMRC currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 187.9%, on average.

The Zacks Consensus Estimate for CMRC’s current financial-year sales and earnings indicates growth of 2.7% and 57.7%, respectively, from the year-ago reported numbers.