For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Raymond James Financial, Inc. (RJF - Free Report) Established in 1962, Raymond James Financial Inc. is a diversified company based in St. Petersburg, FL. The company along with its subsidiaries – Raymond James & Associates Inc. (RJ&A), Raymond James Financial Services Inc. (RJFS), Raymond James Financial Services Advisors Inc. (RJFSA), Raymond James Ltd. (RJ Ltd.), Eagle Asset Management Inc. (Eagle) and Raymond James Bank N.A. (RJ Bank) – provide financial services mainly in the United States and Canada.
RJF is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. RJF has a Growth Style Score of B, forecasting year-over-year earnings growth of 10.9% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $11.82 per share. RJF boasts an average earnings surprise of +2.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RJF should be on investors' short list.
Algert Global LLC raised its stake in Group 1 Automotive, Inc. (NYSE: GPI) by 365.9% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 63,980 shares of the company's stock after purchasing an additional 50,248 shares during the period.
, /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 253 dealerships located in the U.S. and U.K., today announced that it will release financial results for the first quarter ended March 31, 2026 on Thursday, April 30, 2026 before the market opens. Daryl Kenningham, Group 1's President and Chief Executive Officer, and the Company's senior management team will host a conference call to discuss the results later that morning at 10:00 a.m. ET.
The conference call will be simulcast live on the Internet at http://www.group1corp.com/events. A webcast replay will be available for 30 days. A copy of the Company's presentation will also be made available at http://www.group1corp.com/company-presentations.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic:
1-888-317-6003
International:
1-412-317-6061
Passcode:
3297324
A telephonic replay will be available following the call through May 7, 2026, by dialing:
Domestic:
1-855-669-9658
International:
1-412-317-0088
Replay Code:
9961441
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 253 automotive dealerships, 313 franchises, and 32 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto.
Investor contacts:
Terry Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
[email protected]
Media contacts:
Pete DeLongchamps
Senior Vice President, Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
[email protected]
Kimberly Barta
Head of Marketing and Communications
Group 1 Automotive, Inc.
[email protected]
The market expects Group 1 Automotive (GPI - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis auto dealer is expected to post quarterly earnings of $8.93 per share in its upcoming report, which represents a year-over-year change of -12.2%.
Revenues are expected to be $5.5 billion, down 0% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Group 1 Automotive?For Group 1 Automotive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.38%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Group 1 Automotive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Group 1 Automotive would post earnings of $9.36 per share when it actually produced earnings of $8.49, delivering a surprise of -9.29%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Group 1 Automotive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerLithia Motors (LAD - Free Report) , another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $7.07 for the quarter ended March 2026. This estimate points to a year-over-year change of -7.7%. Revenues for the quarter are expected to be $9.36 billion, up 2% from the year-ago quarter.
The consensus EPS estimate for Lithia Motors has been revised 3.2% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.31%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Lithia Motors will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Current quarter diluted earnings per common share from continuing operations of $10.82 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $8.66 Record quarterly U.K. gross profits of $230.6 million, a 6.3% increase over the comparable prior year quarter, driven by double digit same store parts and service and F&I growth. Repurchased approximately 1.7% of the Company's outstanding common shares in first quarter of 2026 , /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 253 dealerships located in the U.S. and U.K., today reported financial results for the first quarter of 2026 ("current quarter").
"The U.K. performed well in the first quarter of 2026," said Daryl Kenningham, Group 1's President and Chief Executive Officer. "Our U.K. business generated record revenues across nearly all major business lines and achieved record gross profit in used vehicles and parts and service. In the U.S., we saw a key bright spot in aftersales, with parts and service gross margin reaching a new quarterly high. Parts and service continues to be a key differentiator for us and our strength during this quarter is a testament to our relentless focus on operational excellence."
"The broader macro environment remains dynamic and challenging, with persistently high interest rates and elevated vehicle and gasoline prices weighing on affordability. To address these challenges, we have initiated several cost actions in the U.S. and U.K., including staffing reductions and discretionary expense reductions across our business."
Reconciliations for financial results, non-GAAP metrics and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.
Current Quarter Results Overview
Current quarter total revenues were $5.4 billion, compared to $5.5 billion for the first quarter of 2025 ("prior-year quarter"). Current quarter net income from continuing operations was $129.9 million, an increase of $2.1 million compared to $127.7 million for the prior-year quarter. Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $104.0 million, compared to $134.7 million for the prior-year quarter. Current quarter diluted earnings per common share from continuing operations was $10.82, an increase of $1.18 compared to $9.64 for the prior-year quarter. Current quarter diluted earnings per common share from continuing operations included a $2.87 per share benefit related to a gain on asset dispositions. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $8.66, compared to $10.17 for the prior-year quarter. First Quarter 2026
Key Performance Metrics
(year-over-year comparable period basis)
Consolidated
Same Store
(a non-GAAP
measure)
Reported:
1Q26
Change
1Q26
Change
Total revenues
$5.4B
(1.8) %
$5.2B
(1.2) %
Total gross profit ("GP")
$877.9M
(1.6) %
$844.7M
(1.4) %
NV units sold
52,398
(6.6) %
50,812
(5.2) %
NV GP per retail unit ("PRU")
$3,296
(2.5) %
$3,239
(4.8) %
Used vehicle ("UV") retail units sold
56,985
(4.4) %
55,128
(3.5) %
UV retail GP PRU
$1,540
(1.9) %
$1,544
(1.7) %
Parts & service ("P&S") GP
$400.0M
+5.0 %
$384.4M
+5.9 %
P&S Gross Margin ("GM")
56.8 %
+1.7 %
56.8 %
+0.8 %
Finance and Insurance ("F&I") revenues
$215.9M
(4.6) %
$208.7M
(4.9) %
F&I GP PRU
$1,974
+0.9 %
$1,970
(0.5) %
Adjusted F&I GP PRU (a non-GAAP measure)
$2,036
+4.1 %
$2,035
+2.7 %
Selling, General and Administrative ("SG&A") expenses as a % of GP
68.4 %
(79) bps
72.9 %
+339 bps
Adjusted SG&A expenses (a non-GAAP measure) as a % of GP
72.7 %
+319 bps
72.2 %
+325 bps
Corporate Development
During the current quarter, as part of Volkswagen Group's Ideal Network Plan, Group 1 acquired one Skoda and two Volkswagen dealerships in the U.K. This acquisition is expected to generate approximately $135 million in annual revenues. The Company remains focused on efficiently and effectively integrating acquisitions into existing operations to create value for shareholders.
During the current quarter, the Company also disposed of two Mercedes-Benz dealerships in California and one Volkswagen and one Skoda dealership in the U.K. These dealerships generated approximately $570 million in annual revenues.
Subsequent to the current quarter, Group 1 executed an agreement with a Chinese automaker, Geely, to expand the U.K. network through three new locations. Additionally, we are evaluating representation with two additional Chinese OEMs.
Share Repurchases
During the current quarter, the Company repurchased 205,190 shares, at an average price per common share of $353.08, for a total of $72.4 million, excluding excise taxes of $0.5 million.
As of March 31, 2026, the Company had an aggregate 11,900,611 outstanding common shares and unvested restricted stock awards. As of March 31, 2026, the Company had $306.3 million remaining in its Board authorized common share repurchase program.
Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations in the open market, pursuant to Rule 10b5-1 trading plans or in privately negotiated transactions, and subject to Board approval and covenant restrictions.
First Quarter Earnings Conference Call Details
Group 1's senior management will host a conference call today at 10:00 a.m. ET to discuss the first quarter 2026 financial results. The conference call will be simulcast live on the Internet at http://www.group1corp.com/events. A webcast replay will be available for 30 days. A copy of the Company's presentation will also be made available at http://www.group1corp.com/company-presentations.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic:
1-888-317-6003
International:
1-412-317-6061
Passcode:
3297324
A telephonic replay will be available following the call through May 7, 2026, by dialing:
Domestic:
1-877-344-7529
International:
1-412-317-0088
Replay Code:
9961441
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 253 automotive dealerships, 313 franchises, and 32 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the impacts of sustained levels of inflation, (c) developments in U.S. and global trade policy, including the imposition by the U.S. of significant tariffs on the import of automobiles and certain materials used in our parts and services business and the resulting consequences (including, but not limited to, retaliatory tariffs by non-U.S. nations, supply chain disruptions, vehicle and part cost increases and demand decreases, and potential recessions in the U.S. and U.K.), (d) the level of manufacturer incentives, (e) our ability to comply with extensive laws, regulations and policies applicable to our operations, including BEV mandates in the U.K., and their impact on new vehicle demand, (f) our ability to obtain an inventory of desirable new and used vehicles (including as a result of changes in the international trade environment), (g) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (h) our cost of financing and the availability of credit for consumers, (i) our ability to complete acquisitions and dispositions, on a timely basis, if at all and the risks associated therewith, (j) our ability to successfully integrate recent and future acquisitions and realize the expected benefits from consummated acquisitions, (k) foreign exchange controls and currency fluctuations, (l) the armed conflicts in Ukraine and the Middle East, (m) our ability to maintain sufficient liquidity to operate, and (n) a material failure in or breach of our vendors' information technology systems and other cybersecurity incidents. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES, SAME STORE DATA, AND OTHER DATA
In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, out-of-period adjustments, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted earnings per share, and constant currency. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors, and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than U.S. dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters.
Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.
Investor contacts:
Terry Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
[email protected]
Media contacts:
Pete DeLongchamps
Senior Vice President, Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
[email protected]
Kimberly Barta
Head of Marketing and Communications
Group 1 Automotive, Inc.
[email protected]
Less: Earnings allocated to participating securities
1.3
1.6
(0.3)
(16.6) %
Net income available to diluted common shares
$ 128.9
$ 126.5
$ 2.4
1.9 %
Diluted earnings per share from continuing operations
$ 10.82
$ 9.64
$ 1.18
12.2 %
Diluted earnings per share from discontinued operations
$ 0.03
$ 0.03
$ —
4.0 %
DILUTED EARNINGS PER SHARE
$ 10.85
$ 9.67
$ 1.18
12.2 %
Weighted average dilutive common shares outstanding
11.9
13.1
(1.2)
(9.2) %
Weighted average participating securities
0.1
0.2
—
(25.8) %
Total weighted average shares
12.0
13.2
(1.2)
(9.4) %
Effective tax rate on continuing operations
23.8 %
23.7 %
0.1 %
Group 1 Automotive, Inc.
Additional Information — Consolidated
(Unaudited)
March 31, 2026
December 31, 2025
Increase/(Decrease)
% Change
SELECTED BALANCE SHEET INFORMATION:
(In millions)
Cash and cash equivalents
$ 41.7
$ 32.5
$ 9.2
28.3 %
Inventories, net
$ 2,727.8
$ 2,741.3
$ (13.5)
(0.5) %
Floorplan notes payable, net (1)
$ 2,239.0
$ 1,915.8
$ 323.2
16.9 %
Total debt
$ 3,141.0
$ 3,699.5
$ (558.5)
(15.1) %
Total equity
$ 2,839.6
$ 2,789.1
$ 50.4
1.8 %
(1) Amounts are net of offset accounts of $149.7 and $504.2, respectively.
Three Months Ended March 31,
2026
2025
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
United States
66.2 %
67.4 %
United Kingdom
33.8 %
32.6 %
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Lexus
25.3 %
23.0 %
Volkswagen/Audi/Porsche/SEAT/SKODA
15.6 %
17.3 %
BMW/MINI
13.0 %
12.3 %
Mercedes-Benz/Sprinter/smart
9.6 %
9.3 %
Honda/Acura
8.0 %
8.0 %
Chevrolet/GMC/Buick
7.0 %
7.7 %
Ford/Lincoln
6.8 %
6.6 %
Hyundai/Kia/Genesis
5.5 %
5.1 %
Jaguar/Land Rover
3.6 %
3.0 %
Nissan
1.7 %
1.8 %
Subaru
1.5 %
2.8 %
Chrysler/Dodge/Jeep/RAM/Citroën/Leapmotor
1.3 %
1.8 %
Mazda
0.9 %
1.1 %
Other
0.1 %
0.1 %
100.0 %
100.0 %
March 31, 2026
December 31, 2025
March 31, 2025
DAYS' SUPPLY IN INVENTORY (1):
Consolidated
New vehicle inventory
38
46
29
Used vehicle inventory
32
36
33
U.S.
New vehicle inventory
51
44
38
Used vehicle inventory
26
29
26
U.K.
New vehicle inventory
19
52
16
Used vehicle inventory
42
55
47
(1) Days' supply in inventory is calculated based on inventory unit levels and 30-day total unit sales volumes, both at the end of each reporting period.
Group 1 Automotive, Inc.
Reported Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Currency
Impact on
Current
Period
Results
Constant
Currency %
Change
Revenues:
New vehicle retail sales
$ 2,562.4
$ 2,680.0
$ (117.6)
(4.4) %
$ 39.0
(5.8) %
Used vehicle retail sales
1,774.9
1,755.4
19.5
1.1 %
42.5
(1.3) %
Used vehicle wholesale sales
149.5
151.6
(2.1)
(1.4) %
3.4
(3.7) %
Total used
1,924.4
1,907.0
17.4
0.9 %
45.9
(1.5) %
Parts and service sales
704.4
692.1
12.4
1.8 %
11.6
0.1 %
F&I, net
215.9
226.2
(10.4)
(4.6) %
2.6
(5.7) %
Total revenues
$ 5,407.1
$ 5,505.3
$ (98.2)
(1.8) %
$ 98.9
(3.6) %
Gross profit:
New vehicle retail sales
$ 172.7
$ 189.6
$ (17.0)
(8.9) %
$ 3.1
(10.6) %
Used vehicle retail sales
87.7
93.5
(5.8)
(6.2) %
1.8
(8.2) %
Used vehicle wholesale sales
1.5
1.5
—
(0.2) %
(0.1)
5.8 %
Total used
89.3
95.1
(5.8)
(6.1) %
1.8
(8.0) %
Parts and service sales
400.0
381.0
19.0
5.0 %
6.6
3.3 %
F&I, net
215.9
226.2
(10.4)
(4.6) %
2.6
(5.7) %
Total gross profit
$ 877.9
$ 891.9
$ (14.1)
(1.6) %
$ 14.1
(3.2) %
Gross margin:
New vehicle retail sales
6.7 %
7.1 %
(0.3) %
Used vehicle retail sales
4.9 %
5.3 %
(0.4) %
Used vehicle wholesale sales
1.0 %
1.0 %
— %
Total used
4.6 %
5.0 %
(0.3) %
Parts and service sales
56.8 %
55.1 %
1.7 %
Total gross margin
16.2 %
16.2 %
— %
Units sold:
Retail new vehicles sold (1)
52,398
56,099
(3,701)
(6.6) %
Retail used vehicles sold (1)
56,985
59,618
(2,633)
(4.4) %
Wholesale used vehicles sold
15,402
16,354
(952)
(5.8) %
Total used
72,387
75,972
(3,585)
(4.7) %
Average sales price per unit sold:
New vehicle retail (1)
$ 52,415
$ 49,861
$ 2,554
5.1 %
$ 788
3.5 %
Used vehicle retail (1)
$ 31,204
$ 29,449
$ 1,755
6.0 %
$ 746
3.4 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,296
$ 3,381
$ (85)
(2.5) %
$ 59
(4.3) %
Used vehicle retail sales
$ 1,540
$ 1,569
$ (29)
(1.9) %
$ 32
(3.9) %
Used vehicle wholesale sales
$ 99
$ 93
$ 6
6.0 %
$ (6)
12.4 %
Total used
$ 1,233
$ 1,251
$ (18)
(1.5) %
$ 24
(3.4) %
F&I PRU
$ 1,974
$ 1,955
$ 19
0.9 %
$ 24
(0.3) %
Adjusted F&I PRU (2)
$ 2,036
$ 1,955
$ 81
4.1 %
$ 24
2.9 %
Other:
SG&A expenses
$ 600.6
$ 617.3
$ (16.7)
(2.7) %
$ 11.9
(4.6) %
Adjusted SG&A expenses (2)
$ 643.4
$ 620.3
$ 23.1
3.7 %
$ 11.9
1.8 %
SG&A as % gross profit
68.4 %
69.2 %
(0.8) %
Adjusted SG&A as % gross profit (2)
72.7 %
69.5 %
3.2 %
Operating margin %
4.5 %
4.2 %
0.2 %
Adjusted operating margin % (2)
3.9 %
4.4 %
(0.5) %
Pretax margin %
3.2 %
3.0 %
0.1 %
Adjusted pretax margin % (2)
2.5 %
3.2 %
(0.7) %
Floorplan expense:
Floorplan interest expense
$ 23.3
$ 26.9
$ (3.6)
(13.4) %
$ 0.5
(15.1) %
Less: Floorplan assistance (3)
20.1
20.4
(0.4)
(1.8) %
—
(1.8) %
Net floorplan expense
$ 3.2
$ 6.5
$ (3.2)
$ 0.5
(1) Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
(2) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
(3) Floorplan assistance is included within New vehicle retail Gross profit above and New vehicle retail Cost of sales in our Condensed Consolidated Statements of Operations.
Group 1 Automotive, Inc.
Reported Operating Data — U.S.
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Revenues:
New vehicle retail sales
$ 1,852.0
$ 1,968.7
$ (116.7)
(5.9) %
Used vehicle retail sales
1,117.5
1,144.3
(26.8)
(2.3) %
Used vehicle wholesale sales
94.6
92.0
2.6
2.8 %
Total used
1,212.1
1,236.3
(24.2)
(2.0) %
Parts and service sales
527.2
531.3
(4.1)
(0.8) %
F&I, net
172.6
185.5
(12.9)
(7.0) %
Total revenues
$ 3,763.8
$ 3,921.8
$ (157.9)
(4.0) %
Gross profit:
New vehicle retail sales
$ 114.9
$ 130.6
$ (15.8)
(12.1) %
Used vehicle retail sales
59.5
65.8
(6.2)
(9.5) %
Used vehicle wholesale sales
2.8
2.6
0.2
7.0 %
Total used
62.3
68.3
(6.0)
(8.8) %
Parts and service sales
297.5
290.5
7.0
2.4 %
F&I, net
172.6
185.5
(12.9)
(7.0) %
Total gross profit
$ 647.2
$ 675.0
$ (27.7)
(4.1) %
Gross margin:
New vehicle retail sales
6.2 %
6.6 %
(0.4) %
Used vehicle retail sales
5.3 %
5.7 %
(0.4) %
Used vehicle wholesale sales
2.9 %
2.8 %
0.1 %
Total used
5.1 %
5.5 %
(0.4) %
Parts and service sales
56.4 %
54.7 %
1.7 %
Total gross margin
17.2 %
17.2 %
— %
Units sold:
Retail new vehicles sold
34,666
37,835
(3,169)
(8.4) %
Retail used vehicles sold
36,097
38,613
(2,516)
(6.5) %
Wholesale used vehicles sold
9,868
10,217
(349)
(3.4) %
Total used
45,965
48,830
(2,865)
(5.9) %
Average sales price per unit sold:
New vehicle retail
$ 53,424
$ 52,034
$ 1,390
2.7 %
Used vehicle retail
$ 30,959
$ 29,636
$ 1,323
4.5 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,313
$ 3,453
$ (139)
(4.0) %
Used vehicle retail sales
$ 1,650
$ 1,703
$ (54)
(3.1) %
Used vehicle wholesale sales
$ 279
$ 252
$ 27
10.8 %
Total used
$ 1,355
$ 1,400
$ (44)
(3.2) %
F&I PRU
$ 2,439
$ 2,426
$ 13
0.5 %
Adjusted F&I PRU (1)
$ 2,535
$ 2,426
$ 109
4.5 %
Other:
SG&A expenses
$ 418.2
$ 447.4
$ (29.2)
(6.5) %
Adjusted SG&A expenses (1)
$ 461.4
$ 451.4
$ 10.0
2.2 %
SG&A as % gross profit
64.6 %
66.3 %
(1.7) %
Adjusted SG&A as % gross profit (1)
70.5 %
66.9 %
3.7 %
(1) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
Group 1 Automotive, Inc.
Reported Operating Data — U.K.
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Currency
Impact on
Current
Period
Results
Constant
Currency %
Change
Revenues:
New vehicle retail sales
$ 710.4
$ 711.2
$ (0.9)
(0.1) %
$ 39.0
(5.6) %
Used vehicle retail sales
657.4
611.1
46.3
7.6 %
42.5
0.6 %
Used vehicle wholesale sales
54.9
59.6
(4.7)
(7.9) %
3.4
(13.6) %
Total used
712.3
670.7
41.6
6.2 %
45.9
(0.6) %
Parts and service sales
177.3
160.8
16.4
10.2 %
11.6
3.0 %
F&I, net
43.3
40.8
2.6
6.3 %
2.6
(0.2) %
Total revenues
$ 1,643.3
$ 1,583.5
$ 59.7
3.8 %
$ 98.9
(2.5) %
Gross profit:
New vehicle retail sales
$ 57.8
$ 59.0
$ (1.2)
(2.0) %
$ 3.1
(7.3) %
Used vehicle retail sales
28.2
27.8
0.4
1.5 %
1.8
(5.1) %
Used vehicle wholesale sales
(1.2)
(1.0)
(0.2)
(17.6) %
(0.1)
(8.8) %
Total used
27.0
26.7
0.2
0.9 %
1.8
(5.7) %
Parts and service sales
102.5
90.5
12.1
13.3 %
6.6
6.0 %
F&I, net
43.3
40.8
2.6
6.3 %
2.6
(0.2) %
Total gross profit
$ 230.6
$ 217.0
$ 13.7
6.3 %
$ 14.1
(0.2) %
Gross margin:
New vehicle retail sales
8.1 %
8.3 %
(0.2) %
Used vehicle retail sales
4.3 %
4.5 %
(0.3) %
Used vehicle wholesale sales
(2.2) %
(1.8) %
(0.5) %
Total used
3.8 %
4.0 %
(0.2) %
Parts and service sales
57.8 %
56.3 %
1.6 %
Total gross margin
14.0 %
13.7 %
0.3 %
Units sold:
Retail new vehicles sold (1)
17,732
18,264
(532)
(2.9) %
Retail used vehicles sold (1)
20,888
21,005
(117)
(0.6) %
Wholesale used vehicles sold
5,534
6,137
(603)
(9.8) %
Total used
26,422
27,142
(720)
(2.7) %
Average sales price per unit sold:
New vehicle retail (1)
$ 49,916
$ 44,642
$ 5,274
11.8 %
$ 2,738
5.7 %
Used vehicle retail (1)
$ 31,630
$ 29,106
$ 2,524
8.7 %
$ 2,043
1.7 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,261
$ 3,231
$ 30
0.9 %
$ 174
(4.5) %
Used vehicle retail sales
$ 1,350
$ 1,322
$ 28
2.1 %
$ 88
(4.6) %
Used vehicle wholesale sales
$ (222)
$ (170)
$ (52)
(30.4) %
$ (17)
(20.7) %
Total used
$ 1,021
$ 985
$ 36
3.6 %
$ 66
(3.1) %
F&I PRU
$ 1,121
$ 1,038
$ 84
8.1 %
$ 68
1.5 %
Other:
SG&A expenses
$ 182.4
$ 169.8
$ 12.5
7.4 %
$ 11.9
0.4 %
Adjusted SG&A expenses (2)
$ 182.0
$ 168.9
$ 13.2
7.8 %
$ 11.9
0.7 %
SG&A as % gross profit
79.1 %
78.3 %
0.8 %
Adjusted SG&A as % gross profit (2)
78.9 %
77.8 %
1.1 %
(1) Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
(2) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
Group 1 Automotive, Inc.
Same Store Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Currency
Impact on
Current
Period
Results
Constant
Currency %
Change
Revenues:
New vehicle retail sales
$ 2,462.5
$ 2,569.2
$ (106.7)
(4.2) %
$ 38.2
(5.6) %
Used vehicle retail sales
1,708.3
1,685.5
22.8
1.4 %
41.8
(1.1) %
Used vehicle wholesale sales
140.8
138.1
2.6
1.9 %
3.1
(0.4) %
Total used
1,849.0
1,823.6
25.5
1.4 %
44.9
(1.1) %
Parts and service sales
677.3
647.9
29.4
4.5 %
11.4
2.8 %
F&I, net
208.7
219.4
(10.7)
(4.9) %
2.6
(6.1) %
Total revenues
$ 5,197.6
$ 5,260.1
$ (62.6)
(1.2) %
$ 96.9
(3.0) %
Gross profit:
New vehicle retail sales
$ 164.6
$ 182.4
$ (17.8)
(9.8) %
$ 3.0
(11.4) %
Used vehicle retail sales
85.1
89.8
(4.6)
(5.2) %
1.8
(7.2) %
Used vehicle wholesale sales
1.8
2.1
(0.2)
(10.8) %
(0.1)
(7.4) %
Total used
87.0
91.8
(4.9)
(5.3) %
1.7
(7.2) %
Parts and service sales
384.4
362.8
21.6
5.9 %
6.5
4.2 %
F&I, net
208.7
219.4
(10.7)
(4.9) %
2.6
(6.1) %
Total gross profit
$ 844.7
$ 856.5
$ (11.8)
(1.4) %
$ 13.8
(3.0) %
Gross margin:
New vehicle retail sales
6.7 %
7.1 %
(0.4) %
Used vehicle retail sales
5.0 %
5.3 %
(0.3) %
Used vehicle wholesale sales
1.3 %
1.5 %
(0.2) %
Total used
4.7 %
5.0 %
(0.3) %
Parts and service sales
56.8 %
56.0 %
0.8 %
Total gross margin
16.3 %
16.3 %
— %
Units sold:
Retail new vehicles sold (1)
50,812
53,625
(2,813)
(5.2) %
Retail used vehicles sold (1)
55,128
57,155
(2,027)
(3.5) %
Wholesale used vehicles sold
14,839
15,274
(435)
(2.8) %
Total used
69,967
72,429
(2,462)
(3.4) %
Average sales price per unit sold:
New vehicle retail (1)
$ 52,058
$ 49,948
$ 2,110
4.2 %
$ 799
2.6 %
Used vehicle retail (1)
$ 31,046
$ 29,494
$ 1,552
5.3 %
$ 760
2.7 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,239
$ 3,402
$ (163)
(4.8) %
$ 60
(6.5) %
Used vehicle retail sales
$ 1,544
$ 1,571
$ (26)
(1.7) %
$ 33
(3.8) %
Used vehicle wholesale sales
$ 123
$ 134
$ (11)
(8.2) %
$ (5)
(4.6) %
Total used
$ 1,243
$ 1,268
$ (25)
(2.0) %
$ 25
(3.9) %
F&I PRU
$ 1,970
$ 1,981
$ (10)
(0.5) %
$ 25
(1.8) %
Adjusted F&I PRU (2)
$ 2,035
$ 1,981
$ 54
2.7 %
$ 25
1.5 %
Other:
SG&A expenses
$ 615.5
$ 595.0
$ 20.5
3.4 %
$ 11.4
1.5 %
Adjusted SG&A expenses (2)
$ 614.5
$ 590.2
$ 24.2
4.1 %
$ 11.4
2.2 %
SG&A as % gross profit
72.9 %
69.5 %
3.4 %
Adjusted SG&A as % gross profit (2)
72.2 %
68.9 %
3.3 %
Operating margin %
3.8 %
4.4 %
(0.6) %
Adjusted operating margin % (2)
4.0 %
4.5 %
(0.5) %
(1) Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
(2) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
Group 1 Automotive, Inc.
Same Store Operating Data — U.S.
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Revenues:
New vehicle retail sales
$ 1,764.4
$ 1,898.8
$ (134.4)
(7.1) %
Used vehicle retail sales
1,060.5
1,113.7
(53.2)
(4.8) %
Used vehicle wholesale sales
89.6
85.0
4.6
5.4 %
Total used
1,150.1
1,198.7
(48.6)
(4.1) %
Parts and service sales
504.3
498.8
5.5
1.1 %
F&I, net
165.9
181.3
(15.4)
(8.5) %
Total revenues
$ 3,584.8
$ 3,777.6
$ (192.8)
(5.1) %
Gross profit:
New vehicle retail sales
$ 107.9
$ 127.0
$ (19.2)
(15.1) %
Used vehicle retail sales
57.4
64.4
(7.1)
(11.0) %
Used vehicle wholesale sales
2.7
2.4
0.3
12.1 %
Total used
60.1
66.9
(6.8)
(10.2) %
Parts and service sales
284.0
278.9
5.1
1.8 %
F&I, net
165.9
181.3
(15.4)
(8.5) %
Total gross profit
$ 617.9
$ 654.2
$ (36.3)
(5.5) %
Gross margin:
New vehicle retail sales
6.1 %
6.7 %
(0.6) %
Used vehicle retail sales
5.4 %
5.8 %
(0.4) %
Used vehicle wholesale sales
3.1 %
2.9 %
0.2 %
Total used
5.2 %
5.6 %
(0.4) %
Parts and service sales
56.3 %
55.9 %
0.4 %
Total gross margin
17.2 %
17.3 %
(0.1) %
Units sold:
Retail new vehicles sold
33,404
36,590
(3,186)
(8.7) %
Retail used vehicles sold
34,584
37,566
(2,982)
(7.9) %
Wholesale used vehicles sold
9,506
9,789
(283)
(2.9) %
Total used
44,090
47,355
(3,265)
(6.9) %
Average sales price per unit sold:
New vehicle retail
$ 52,820
$ 51,893
$ 927
1.8 %
Used vehicle retail
$ 30,665
$ 29,647
$ 1,019
3.4 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,229
$ 3,472
$ (243)
(7.0) %
Used vehicle retail sales
$ 1,658
$ 1,715
$ (57)
(3.3) %
Used vehicle wholesale sales
$ 288
$ 249
$ 38
15.4 %
Total used
$ 1,363
$ 1,412
$ (50)
(3.5) %
F&I PRU
$ 2,440
$ 2,445
$ (5)
(0.2) %
Adjusted F&I PRU (1)
$ 2,540
$ 2,445
$ 95
3.9 %
Other:
SG&A expenses
$ 440.9
$ 438.4
$ 2.5
0.6 %
Adjusted SG&A expenses (1)
$ 439.9
$ 434.6
$ 5.3
1.2 %
SG&A as % gross profit
71.4 %
67.0 %
4.3 %
Adjusted SG&A as % gross profit (1)
70.4 %
66.4 %
4.0 %
(1) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
Group 1 Automotive, Inc.
Same Store Operating Data — U.K.
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31,
2026
2025
Increase/
(Decrease)
% Change
Currency
Impact on
Current
Period
Results
Constant
Currency %
Change
Revenues:
New vehicle retail sales
$ 698.1
$ 670.4
$ 27.6
4.1 %
$ 38.2
(1.6) %
Used vehicle retail sales
647.8
571.8
76.0
13.3 %
41.8
6.0 %
Used vehicle wholesale sales
51.2
53.1
(1.9)
(3.6) %
3.1
(9.5) %
Total used
698.9
624.8
74.1
11.9 %
44.9
4.7 %
Parts and service sales
173.0
149.2
23.8
16.0 %
11.4
8.4 %
F&I, net
42.8
38.1
4.7
12.4 %
2.6
5.6 %
Total revenues
$ 1,612.8
$ 1,482.5
$ 130.3
8.8 %
$ 96.9
2.2 %
Gross profit:
New vehicle retail sales
$ 56.7
$ 55.4
$ 1.3
2.4 %
$ 3.0
(3.0) %
Used vehicle retail sales
27.8
25.3
2.4
9.7 %
1.8
2.5 %
Used vehicle wholesale sales
(0.9)
(0.4)
(0.5)
(134.1) %
(0.1)
(115.9) %
Total used
26.9
24.9
1.9
7.7 %
1.7
0.8 %
Parts and service sales
100.4
83.9
16.5
19.6 %
6.5
11.9 %
F&I, net
42.8
38.1
4.7
12.4 %
2.6
5.6 %
Total gross profit
$ 226.8
$ 202.3
$ 24.5
12.1 %
$ 13.8
5.3 %
Gross margin:
New vehicle retail sales
8.1 %
8.3 %
(0.1) %
Used vehicle retail sales
4.3 %
4.4 %
(0.1) %
Used vehicle wholesale sales
(1.8) %
(0.7) %
(1.0) %
Total used
3.8 %
4.0 %
(0.1) %
Parts and service sales
58.0 %
56.3 %
1.8 %
Total gross margin
14.1 %
13.6 %
0.4 %
Units sold:
Retail new vehicles sold (1)
17,408
17,035
373
2.2 %
Retail used vehicles sold (1)
20,544
19,589
955
4.9 %
Wholesale used vehicles sold
5,333
5,485
(152)
(2.8) %
Total used
25,877
25,074
803
3.2 %
Average sales price per unit sold:
New vehicle retail (1)
$ 50,198
$ 45,106
$ 5,091
11.3 %
$ 2,749
5.2 %
Used vehicle retail (1)
$ 31,691
$ 29,202
$ 2,489
8.5 %
$ 2,047
1.5 %
Gross profit per unit sold:
New vehicle retail sales
$ 3,258
$ 3,251
$ 7
0.2 %
$ 174
(5.1) %
Used vehicle retail sales
$ 1,352
$ 1,293
$ 59
4.6 %
$ 88
(2.3) %
Used vehicle wholesale sales
$ (169)
$ (70)
$ (99)
(140.8) %
$ (13)
(122.1) %
Total used
$ 1,039
$ 995
$ 44
4.4 %
$ 67
(2.4) %
F&I PRU
$ 1,128
$ 1,040
$ 88
8.5 %
$ 68
1.9 %
Other:
SG&A expenses
$ 174.6
$ 156.6
$ 18.0
11.5 %
$ 11.4
4.2 %
Adjusted SG&A expenses (2)
$ 174.6
$ 155.7
$ 18.9
12.2 %
$ 11.4
4.8 %
SG&A as % gross profit
77.0 %
77.4 %
(0.4) %
Adjusted SG&A as % gross profit (2)
77.0 %
76.9 %
— %
(1) Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
(2) See the section in this release titled "Reconciliation of Certain Non-GAAP Financial Measures" for the GAAP to non-GAAP reconciliation of these figures.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share and unit data)
Three Months Ended March 31, 2026
U.S.
GAAP
Non-
recurring
F&I
adjustment
Non-cash
gain on
interest
rate
swaps
Catastrophic
events
Dealership
and real
estate
transactions
Restructuring
charges
Legal items
and other
professional
fees
Asset
impairments
and
accelerated
depreciation
Non-
GAAP
adjusted
F&I, net
$ 215.9
$ 6.8
$ —
$ —
$ —
$ —
$ —
$ —
$ 222.7
Total gross profit
$ 877.9
$ 6.8
$ —
$ —
$ —
$ —
$ —
$ —
$ 884.7
SG&A expenses
$ 600.6
$ —
$ —
$ (0.7)
$ 43.8
$ —
$ (0.3)
$ —
$ 643.4
Depreciation and amortization expense
$ 31.1
$ —
$ —
$ —
$ —
$ —
$ —
$ (0.8)
$ 30.3
Asset impairments
$ 2.5
$ —
$ —
$ —
$ —
$ —
$ —
$ (2.5)
$ —
Restructuring charges
$ 1.0
$ —
$ —
$ —
$ —
$ (1.0)
$ —
$ —
$ —
Income (loss) from operations
$ 242.6
$ 6.8
$ —
$ 0.7
$ (43.8)
$ 1.0
$ 0.3
$ 3.4
$ 210.9
Other interest expense, net
$ 48.8
$ —
$ 0.8
$ —
$ —
$ —
$ —
$ —
$ 49.6
Income (loss) before income taxes
$ 170.5
$ 6.8
$ (0.8)
$ 0.7
$ (43.8)
$ 1.0
$ 0.3
$ 3.4
$ 138.0
Less: Provision (benefit) for income
taxes
40.6
1.6
(0.2)
0.2
(9.4)
0.4
0.1
0.8
34.1
Net income (loss) from continuing
operations
129.9
5.2
(0.6)
0.5
(34.5)
0.7
0.3
2.5
104.0
Less: Earnings (loss) allocated to
participating securities
1.3
0.1
—
—
(0.4)
—
—
—
1.1
Net income (loss) from continuing
operations available to diluted common
shares
$ 128.6
$ 5.1
$ (0.6)
$ 0.5
$ (34.1)
$ 0.7
$ 0.2
$ 2.5
$ 102.9
Diluted earnings (loss) per common
share from continuing operations
$ 10.82
$ 0.43
$ (0.05)
$ 0.04
$ (2.87)
$ 0.06
$ 0.02
$ 0.21
$ 8.66
Effective tax rate
23.8 %
24.7 %
F&I PRU (1)
$ 1,974
$ 2,036
SG&A as % gross profit (2)
68.4 %
72.7 %
Operating margin (3)
4.5 %
3.9 %
Pretax margin (4)
3.2 %
2.5 %
Same Store F&I, net
$ 208.7
$ 6.8
$ —
$ —
$ —
$ —
$ —
$ —
$ 215.5
Same Store F&I PRU (1)
$ 1,970
$ 2,035
Same Store Total gross profit
$ 844.7
$ 6.8
$ —
$ —
$ —
$ —
$ —
$ —
$ 851.5
Same Store SG&A expenses
$ 615.5
$ —
$ —
$ (0.7)
$ —
$ —
$ (0.3)
$ —
$ 614.5
Same Store SG&A as % gross profit (2)
72.9 %
72.2 %
Same Store income from operations
$ 197.5
$ 6.8
$ —
$ 0.7
$ —
$ —
$ 0.3
$ 2.8
$ 208.1
Same Store operating margin (3)
3.8 %
4.0 %
U.S. GAAP
Non-GAAP
adjustments
Non-GAAP
adjusted
Net income from discontinued operations
$ 0.3
$ —
$ 0.3
Less: Earnings allocated to participating securities
—
—
—
Net income from discontinued operations available to diluted common shares
$ 0.3
$ —
$ 0.3
Net income (loss)
$ 130.2
$ (25.9)
$ 104.3
Less: Earnings (loss) allocated to participating securities
1.3
(0.3)
1.1
Net income (loss) available to diluted common shares
$ 128.9
$ (25.7)
$ 103.2
Diluted earnings per common share from discontinued operations
$ 0.03
$ —
$ 0.03
Diluted earnings (loss) per common share from continuing operations
10.82
(2.16)
8.66
Diluted earnings (loss) per common share
$ 10.85
$ (2.16)
$ 8.69
(1) Adjusted F&I PRU excludes the impact of the non-recurring F&I adjustment.
(2) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
(3) Adjusted operating margin excludes the impact of the non-recurring F&I adjustment, SG&A reconciling items, accelerated depreciation expense, asset impairment charges and restructuring charges.
(4) Adjusted pretax margin excludes the impact of the non-recurring F&I adjustment, non-cash gain on interest rate swaps, SG&A reconciling items, accelerated depreciation expense, asset impairment charges and restructuring charges.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)
Three Months Ended March 31, 2025
U.S.
GAAP
Dealership
and real
estate
transactions
Severance
costs
Restructuring
charges
Acquisition
costs
Legal items
and other
professional
fees
Asset
impairments
and
accelerated
depreciation
Non-
GAAP
adjusted
SG&A expenses
$ 617.3
$ 7.8
$ (1.0)
$ —
$ (1.1)
$ (2.7)
$ —
$ 620.3
Depreciation and amortization expense
$ 29.3
$ —
$ —
$ —
$ —
$ —
$ (0.4)
$ 28.9
Asset impairments
$ 0.4
$ —
$ —
$ —
$ —
$ —
$ (0.4)
$ —
Restructuring charges
$ 11.1
$ —
$ —
$ (11.1)
$ —
$ —
$ —
$ —
Income (loss) from operations
$ 233.9
$ (7.8)
$ 1.0
$ 11.1
$ 1.1
$ 2.7
$ 0.8
$ 242.8
Income (loss) before income taxes
$ 167.5
$ (7.8)
$ 1.0
$ 11.1
$ 1.1
$ 2.7
$ 0.8
$ 176.4
Less: Provision (benefit) for income taxes
39.7
(1.7)
—
2.8
—
0.6
0.2
41.6
Net income (loss) from continuing operations
127.7
(6.1)
1.0
8.3
1.1
2.0
0.6
134.7
Less: Earnings (loss) allocated to participating
securities
1.6
(0.1)
—
0.1
—
—
—
1.7
Net income (loss) from continuing operations
available to diluted common shares
$ 126.2
$ (6.0)
$ 1.0
$ 8.2
$ 1.1
$ 2.0
$ 0.6
$ 133.1
Diluted earnings (loss) per common share from
continuing operations
$ 9.64
$ (0.46)
$ 0.08
$ 0.63
$ 0.08
$ 0.15
$ 0.05
$ 10.17
Effective tax rate
23.7 %
23.6 %
SG&A as % gross profit (1)
69.2 %
69.5 %
Operating margin (2)
4.2 %
4.4 %
Pretax margin (3)
3.0 %
3.2 %
Same Store SG&A expenses
$ 595.0
$ —
$ (1.0)
$ —
$ (1.1)
$ (2.7)
$ —
$ 590.2
Same Store SG&A as % gross profit (1)
69.5 %
68.9 %
Same Store income from operations
$ 230.8
$ —
$ 1.0
$ —
$ 1.1
$ 2.7
$ 3.1
$ 238.6
Same Store operating margin (2)
4.4 %
4.5 %
U.S. GAAP
Non-GAAP
adjustments
Non-GAAP
adjusted
Net income from discontinued operations
$ 0.4
$ —
$ 0.4
Less: Earnings allocated to participating securities
—
—
—
Net income from discontinued operations available to diluted common shares
$ 0.3
$ —
$ 0.3
Net income
$ 128.1
$ 7.0
$ 135.1
Less: Earnings allocated to participating securities
1.6
0.1
1.7
Net income available to diluted common shares
$ 126.5
$ 6.9
$ 133.4
Diluted earnings per common share from discontinued operations
$ 0.03
$ —
$ 0.03
Diluted earnings per common share from continuing operations
9.64
0.53
10.17
Diluted earnings per common share
$ 9.67
$ 0.53
$ 10.20
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
(2) Adjusted operating margin excludes the impact of SG&A reconciling items, accelerated depreciation expense, asset impairment charges and restructuring charges.
(3) Adjusted pretax margin excludes the impact of SG&A reconciling items, accelerated depreciation expense, asset impairment charges and restructuring charges.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — U.S.
(Unaudited)
(In millions, except unit data)
Three Months Ended March 31, 2026
U.S. GAAP
Non-
recurring
F&I
adjustment
Catastrophic
events
Dealership
and real
estate
transactions
Legal items
and other
professional
fees
Non-GAAP
adjusted
F&I, net
$ 172.6
$ 6.8
$ —
$ —
$ —
$ 179.4
F&I PRU (1)
$ 2,439
$ 2,535
Total gross profit
$ 647.2
$ 6.8
$ —
$ —
$ —
$ 654.0
SG&A expenses
$ 418.2
$ —
$ (0.7)
$ 44.2
$ (0.3)
$ 461.4
SG&A as % gross profit (2)
64.6 %
70.5 %
Same Store F&I, net
$ 165.9
$ 6.8
$ —
$ —
$ —
$ 172.7
Same Store F&I PRU (1)
$ 2,440
$ 2,540
Same Store Total gross profit
$ 617.9
$ 6.8
$ —
$ —
$ —
$ 624.7
Same Store SG&A expenses
$ 440.9
$ —
$ (0.7)
$ —
$ (0.3)
$ 439.9
Same Store SG&A as % gross profit (2)
71.4 %
70.4 %
Three Months Ended March 31, 2025
U.S.
GAAP
Dealership
and real
estate
transactions
Severance
costs
Acquisition
costs
Legal items
and other
professional
fees
Non-GAAP
adjusted
SG&A expenses
$ 447.4
$ 7.8
$ (1.0)
$ (0.1)
$ (2.7)
$ 451.4
SG&A as % gross profit (2)
66.3 %
66.9 %
Same Store SG&A expenses
$ 438.4
$ —
$ (1.0)
$ (0.1)
$ (2.7)
$ 434.6
Same Store SG&A as % gross profit (2)
67.0 %
66.4 %
(1) Adjusted F&I PRU excludes the impact of the non-recurring F&I adjustment.
(2) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — U.K.
(Unaudited)
(In millions)
Three Months Ended March 31, 2026
U.S. GAAP
Dealership and real
estate transactions
Non-GAAP Adjusted
SG&A expenses
$ 182.4
$ (0.3)
$ 182.0
SG&A as % gross profit (1)
79.1 %
78.9 %
Three Months Ended March 31, 2025
U.S. GAAP
Acquisition costs
Non-GAAP Adjusted
SG&A expenses
$ 169.8
$ (1.0)
$ 168.9
SG&A as % gross profit (1)
78.3 %
77.8 %
Same Store SG&A expenses
$ 156.6
$ (1.0)
$ 155.7
Same Store SG&A as % gross profit (1)
77.4 %
76.9 %
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
Group 1 Automotive (GPI - Free Report) came out with quarterly earnings of $8.66 per share, missing the Zacks Consensus Estimate of $8.93 per share. This compares to earnings of $10.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.00%. A quarter ago, it was expected that this auto dealer would post earnings of $9.36 per share when it actually produced earnings of $8.49, delivering a surprise of -9.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Group 1 Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $5.41 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.76%. This compares to year-ago revenues of $5.51 billion. The company has topped consensus revenue estimates two 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.
Group 1 Automotive shares have lost about 11.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Group 1 Automotive?While Group 1 Automotive 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 Group 1 Automotive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $10.67 on $5.75 billion in revenues for the coming quarter and $41.86 on $22.93 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, Automotive - Retail and Whole Sales is currently in the bottom 27% 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.
Titan Machinery (TITN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026.
This agriculture and construction equipment seller is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -5.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Titan Machinery's revenues are expected to be $493.22 million, down 17% from the year-ago quarter.
For the quarter ended March 2026, Group 1 Automotive (GPI - Free Report) reported revenue of $5.41 billion, down 1.8% over the same period last year. EPS came in at $8.66, compared to $10.17 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.5 billion, representing a surprise of -1.76%. The company delivered an EPS surprise of -3%, with the consensus EPS estimate being $8.93.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Group 1 Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Units sold - Retail new vehicles sold: 52,398 versus 54,145 estimated by four analysts on average.Units sold - Retail used vehicles sold: 56,985 versus 59,473 estimated by four analysts on average.Units sold - United States - Retail new vehicles sold: 34,666 versus the three-analyst average estimate of 37,063.Units sold - United States - Retail used vehicles sold: 36,097 versus the three-analyst average estimate of 38,194.Revenues- United States - New vehicle retail sales: $1.85 billion compared to the $1.92 billion average estimate based on three analysts. The reported number represents a change of -5.9% year over year.Revenues- United Kingdom - New vehicle retail sales: $710.4 million versus the three-analyst average estimate of $743.12 million. The reported number represents a year-over-year change of -0.1%.Revenues- United States - F&I, net: $172.6 million versus the three-analyst average estimate of $189.15 million. The reported number represents a year-over-year change of -7%.Revenues- United States - Parts and service sales: $527.2 million versus the three-analyst average estimate of $547.82 million. The reported number represents a year-over-year change of -0.8%.Revenues- New vehicle retail sales: $2.56 billion versus $2.62 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.4% change.Revenues- Finance, insurance and other, net: $215.9 million versus the four-analyst average estimate of $231.59 million. The reported number represents a year-over-year change of -4.6%.Revenues- Total Used vehicle: $1.92 billion versus $1.92 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.9% change.Revenues- Used vehicle wholesale sales: $149.5 million versus the four-analyst average estimate of $159.75 million. The reported number represents a year-over-year change of -1.4%.View all Key Company Metrics for Group 1 Automotive here>>>
Shares of Group 1 Automotive have returned +5.6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--The Presidio Group LLC (“Presidio”), an independent merchant banking firm focused on mergers and acquisitions, capital raising and investments in the automotive retail and consumer mobility sectors, exclusively advised Group 1 Automotive (NYSE: GPI) on the sale of Mercedes-Benz of Beverly Hills to Fletcher Jones Automotive Group (“Fletcher Jones”). The transaction closed March 30. “After significant acquisitions expanding Group 1's footprint and increasin.
Key Takeaways GPI Q1 EPS fell 14.8% to $8.66, missing estimates as revenues dipped 1.8% to $5.41B.Group 1 faced lower vehicle volumes, partly offset by higher pricing and resilient aftersales margins.GPI's parts and service gross profit rose 5%, while U.K. operations delivered record gross profit. Group 1 Automotive, Inc. (GPI - Free Report) reported first-quarter 2026 adjusted earnings of $8.66 per share, which declined 14.8% year over year and missed the Zacks Consensus Estimate of $8.93 by 3%. Total revenues were $5.41 billion, which decreased 1.8% year over year and came below the consensus mark of $5.50 billion by 1.76%.
Results reflected continued pressure on retail vehicle volumes, partly offset by steadier pricing and a resilient aftersales business. A key highlight was parts and service gross margin, which reached 56.8% in the quarter.
GPI’s Gross Profit Mix Leans on AftersalesGross profit totaled $877.9 million, edging down 1.6% from the year-ago quarter. The performance underscored how aftersales continues to stabilize results as vehicle retail activity normalizes.
Parts and service gross profit rose 5% year over year to $400 million, aided by a 170-basis-point improvement in parts and service gross margin to 56.8%.
Group 1 Sees Lower Volumes as Pricing Stays FirmOn the retail new-vehicle side, sales fell 4.4% from the prior-year quarter’s level to $2.56 billion, units sold fell 6.6% year over year to 52,398, while gross profit per retail unit slipped 2.5% to $3,296. The average selling price per new vehicle increased 5.1% to $52,415, partially cushioning the revenue impact from lower volumes.
Used-vehicle retail sales rose 1.1% from the year-ago period to $1.77 billion. Units sold declined 4.4% to 56,985, and used retail gross profit per unit decreased 1.9% to $1,540. Still, the average used-vehicle selling price rose 6% to $31,204, reflecting a higher price environment even as unit counts moderated.
Used-vehicle wholesale sales declined 1.4% year over year to $149.5 million. The unit generated gross profit of $1.5 million, flat year over year. In the Parts and Service business, the top line increased 1.8% to $704.4 million. Revenues from the Finance, Insurance and Other business were $215.9 million, down 4.6% from the year-ago quarter’s level.
GPI’s U.S. Operations Record Sales & Profit DeclineIn the reported quarter, revenues from the U.S. business segment fell 4% year over year to $3.76 billion. The segment’s gross profit declined 4.1% to $647.2 million. During the quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 34,666, 36,097 and 9,868, respectively.
Group 1’s U.K. Operations Post Record Quarterly Gross ProfitThe U.K. segment generated revenues of $1.64 billion, up 3.8% year over year, while gross profit increased 6.3% to a record $230.6 million in the quarter. Within the market, parts and service sales climbed 10.2% to $177.3 million, and parts and service gross profit rose 13.3% to $102.5 million, supporting the overall improvement. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 17,732, 20,888 and 5,534, respectively.
The strength across several U.K. business lines in the quarter, including progress in used vehicles and F&I on a same-store basis, alongside ongoing operational initiatives aimed at expanding service capacity and throughput, resulted in improvement.
Group 1 Targets Efficiency, Reshapes PortfolioIn the United States, the company implemented staffing reductions and discretionary expense actions, and expects to remove $50 million of annual costs from U.S. operations through headcount and contract-related savings.
The quarter also included portfolio activity. Group 1 acquired one Skoda and two Volkswagen dealerships in the United Kingdom, expected to add about $135 million in annual revenues, while disposing of two Mercedes-Benz dealerships in California and one Volkswagen and one Skoda dealership in the United Kingdom that collectively represented about $570 million in annual revenues. Subsequent to quarter-end, the company executed an agreement with Geely to expand its U.K. network through three new locations.
GPI’s Cash Flow, Liquidity and Leverage UpdateAs of March 31, 2026, Group 1’s cash and cash equivalents totaled $41.7 million, up from $32.5 million as of Dec. 31, 2025. Total debt was $3.14 billion at March 31, 2026, down from $3.70 billion as of Dec. 31, 2025, while floorplan notes payable (net) increased to $2.24 billion from $1.92 billion over the same period.
The company reported total liquidity of $714.3 million at quarter-end, comprising accessible cash and availability on the acquisition line, and noted a rent-adjusted leverage ratio of 3.09x. The quarter included $53 million of capital expenditures and $72.4 million of share repurchases, with $306.3 million remaining under the authorized buyback program as of March 31, 2026.
GPI currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto SpaceMobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
, /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 253 dealerships located in the U.S. and U.K., today announced its board of directors declared a quarterly dividend of $0.55 per share. The dividend is consistent with the Company's previously announced increase of 10% in its annualized dividend rate from $2.00 per share in 2025 to $2.20 per share in 2026.
The dividend is payable on June 15, 2026 to stockholders of record as of June 1, 2026.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 253 automotive dealerships, 313 franchises, and 32 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto.
FORWARD-LOOKING STATEMENTS
All statements in this press release related to future, not past, events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on our current expectations and assumptions regarding our business, the economy and other future conditions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Investor contacts:
Terry Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
[email protected]
Media contacts:
Pete DeLongchamps
Senior Vice President, Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
[email protected]
Kimberly Barta
Head of Marketing and Communications
Group 1 Automotive, Inc.
[email protected]
, /PRNewswire/ -- Group 1 Automotive (NYSE: GPI) ("Group 1" or the "Company") today announced the appointment of Daniel McHenry as President and CEO of its UK business, effective May 19, 2026.* Prior to becoming CFO for Group 1, Daniel spent 13 years in Group 1's UK Operations. He will lead the UK business while continuing in his CFO role, reporting to Daryl Kenningham, Group 1's President and CEO. McHenry replaces Mark Raban, who is leaving the Company after two years as the head of the UK business.
"Daniel is an exceptional talent, and his proven leadership and experience make him the right leader for our UK business. We believe he will have a very positive impact." said Mr. Kenningham. "This appointment gives Daniel valuable operational experience, a reflection of our commitment to talent development and succession planning."
"I am proud to take on this role," said McHenry, "and look forward to building on what Group 1 has already achieved in the UK. Our US and UK businesses have distinct strengths and drawing on those strengths and the broader resources of Group 1 presents a tremendous opportunity for our team and our shareholders."
A native of Belfast, Northern Ireland, McHenry holds a Bachelor's degree in Economics from Queen's University Belfast and a Master's degree in Accounting and Management Science from the University of Southampton. Prior to his 2020 appointment as CFO, he served as UK Finance Director for Group 1.
Mr. Kenningham concluded, "I would also like to thank Mark for his contributions to our UK business and wish him nothing but the best in the future."
*subject to formal regulatory approval
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 253 automotive dealerships, 313 franchises, and 32 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto
Investor contacts:
[email protected]
Media contacts:
Pete DeLongchamps
Senior Vice President, Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
[email protected]
Kimberly Barta
Head of Marketing, Brand and Communications
Group 1 Automotive, Inc.
[email protected]
On May 19, 2026, Group 1 Automotive Inc GPI shares fell 3.7% to a current price of $305.47. This decline is part of a broader downward trend, with the stock down 22.2% year-to-date and 30.4% over the past year. The shares have traded in a 52-week range of $292.44 to $488.39.
GF Value™ verdict: Current price of $305.47 is 28.0% below the GF Value™ estimate of $424.37.GF Score™ of 86/100 indicates a strong overall performance based on key financial metrics.Notable signal: No insider transactions have occurred in the last 3 months. Is GPI Overvalued or Undervalued? Group 1 Automotive Inc GPI appears to be undervalued according to the GF Value™ which estimates a fair value of $424.37. This suggests that the stock is currently trading at a significant discount of 28.0% compared to its intrinsic value. The margin of safety provided by this undervaluation may present a considerable opportunity for investors looking for growth in the automotive sector. However, potential investors should exercise caution as the undervaluation must be weighed against market conditions and the company's financial health. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Additionally, the GF Valuation label indicates that GPI is "Modestly Undervalued," further reinforcing the view that current pricing does not fully reflect the company's underlying value. Investors may find this an attractive entry point, though they should remain aware of market volatility and economic factors that could impact future performance.
How Does GPI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 11.7x 6.5x Forward P/E 7.2x N/A Currently, GPI's P/E ratio of 11.7x is 80% above its 5-year median P/E of 6.5x, suggesting that the stock is trading at a premium compared to its historical valuation. The forward P/E of 7.2x indicates a potential for earnings growth that may not be fully reflected in the current valuation. This P/E analysis aligns with the GF Value™ verdict, indicating that while the stock may be undervalued, it is also trading at higher multiples than its historical averages.
What Does GPI's GF Score™ Tell Us? Metric Rating GF Score™ 86 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 The GF Score™ of 86/100 indicates a strong overall performance for GPI based on the five key aspects of financial analysis. The strongest areas are Growth (9/10) and Profitability (8/10), suggesting that the company has strong potential for earnings and operational efficiency. However, the Financial Strength rating of 5/10 and the Momentum score of 4/10 highlight areas where the company may face challenges, particularly in maintaining stable financial health and positive stock price momentum.
What Are Insiders Doing with GPI Stock? In the last three months, there have been no insider transactions reported for Group 1 Automotive Inc. This lack of insider activity may suggest a neutral sentiment among insiders regarding the stock's current valuation and future potential. Absence of buying or selling can indicate that insiders are uncertain or do not find the current price appealing enough to act.
What This Means for Investors Based on the analysis, Group 1 Automotive Inc GPI is currently undervalued according to GF Value™, presenting a potential investment opportunity within the automotive sector. However, investors should consider the overall market conditions and the company's financial strength before making investment decisions.
For the complete analysis, visit the Group 1 Automotive Inc GPI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GPI's GF Score™?
GPI's GF Score™ is 86/100, indicating a strong overall performance based on key financial metrics that suggest potential for higher long-term returns.
Is GPI overvalued or undervalued?
GPI is currently undervalued with a GF Value™ of $424.37, which is 28.0% higher than its current price of $305.47.
What is GPI's P/E ratio?
GPI's P/E ratio (TTM) is 11.7x, which is significantly above its historical 5-year median P/E of 6.5x, suggesting that the stock is trading at a premium compared to its past valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 29, 2026, Group 1 Automotive Inc GPI shares fell 3.1% to a current price of $316.34. This decline continues a troubling trend, with the stock down 19.4% year-to-date and 25.0% over the past year, while trading within a 52-week range of $292.44 to $488.39.
GF Value™ verdict: Current price is $316.34, which is 25.6% below the GF Value™ estimate of $425.27.GF Score™ of 86/100 indicates a strong overall rating based on various factors.Most notable signal: No insider transactions have occurred in the last 3 months, suggesting a lack of insider confidence or activity. Is GPI Overvalued or Undervalued? Currently, Group 1 Automotive Inc GPI is trading at $316.34, which is significantly below its GF Value™ estimate of $425.27. This indicates that the stock is 25.6% undervalued, presenting potential opportunities for investors looking for bargains in the automotive sector. The GF Valuation label classifies GPI as modestly undervalued, suggesting that there is a margin of safety for potential investors. However, it is crucial to consider that a modest undervaluation does not guarantee immediate price appreciation, as market conditions and company performance can influence the stock's movement.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current undervaluation signals a potential opportunity, but caution should be exercised as market volatility and broader economic conditions can impact stock prices in the near term.
How Does GPI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.1x 6.5x (5-Year Median) Forward P/E 7.5x - The current P/E (TTM) ratio of 12.1x is substantially above the 5-year median P/E of 6.5x, indicating that GPI is trading at a higher valuation relative to its historical averages. This P/E analysis corroborates the GF Value™ verdict that GPI is undervalued, as the higher current P/E could suggest a market correction is needed to bring valuations in line with historical averages.
What Does GPI's GF Score™ Tell Us? Metric Rating GF Score™ 86/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 GPI's GF Score™ of 86/100 indicates a strong potential for long-term returns, with particularly high ratings in Growth (9/10) and Profitability (8/10). However, the Financial Strength score of 5/10 raises concerns about the company’s overall financial stability. Additionally, the low Momentum rank of 4/10 suggests that the stock may face headwinds in the short term, which could impact its price performance moving forward.
What Are Insiders Doing with GPI Stock? In the past three months, there have been no reported insider transactions for Group 1 Automotive Inc GPI . This lack of insider activity may suggest that company executives are either confident in the current valuation or are waiting for more favorable market conditions before making moves with their stock holdings. Without insider buying, it can be challenging to gauge the sentiment from those within the company regarding its future performance.
What This Means for Investors Based on the GF Value™ assessment, Group 1 Automotive Inc GPI is currently undervalued, offering a potential opportunity for investors looking to enter the stock at a discount. However, given the recent trends in price performance and the concerns around Financial Strength and Momentum, caution is warranted when considering investment in GPI.
For the complete analysis, visit the Group 1 Automotive Inc GPI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GPI's GF Score™?
GPI's GF Score™ is 86/100, indicating a strong overall rating based on multiple financial performance metrics.
Is GPI overvalued or undervalued?
GPI is currently undervalued, with a GF Value™ estimate of $425.27, which is 25.6% higher than the current market price of $316.34.
What is GPI's P/E ratio?
GPI's P/E (TTM) ratio is 12.1x, which is significantly above its 5-year median of 6.5x, suggesting a higher valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
, /PRNewswire/ -- Mercedes-Benz of Westwood, part of Houston-based Group 1 Automotive, Inc. ( NYSE: GPI ), will celebrate the grand opening of its newly renovated dealership on June 4, from 6 to 9 p.m. at 425 Providence Hwy in Westwood, Massachusetts. The event will feature food, drinks, entertainment, a ribbon-cutting ceremony, and remarks from Group 1 President and CEO Daryl Kenningham. CEO Adam Chamberlain of Mercedes-Benz USA will also be in attendance.
Guests can learn more about Mercedes-Benz of Westwood, explore current inventory, and schedule service at Mercedes-Benz of Westwood online.
The multi-phase renovation modernized approximately 35,320 square feet of the dealership and expanded the final building to approximately 67,617 square feet, including existing service and parts areas. The project introduced a larger showroom, an expanded service drive, AMG Performance Center displays, large-format digital vehicle stages, upgraded customer lounge spaces, and new vehicle delivery areas.
“Customers will notice the difference from the moment they arrive,” said Michael Espey, General Manager of Mercedes-Benz of Westwood. “The expanded showroom allows us to showcase our vehicles more effectively, the enhanced service drive improves efficiency and convenience, and the upgraded customer spaces create a more comfortable and welcoming environment. We look forward to welcoming guests to experience the dealership firsthand.”
Customer areas were also expanded and updated. The renovated dealership includes a larger customer lounge with a self-serve café, customer workstations, and retail display areas. Restroom improvements include individual stalls for added privacy. The expanded service drive accommodates more vehicles indoors, helping customers move through arrival and drop-off more efficiently.
“Mercedes-Benz of Westwood reflects Group 1 Automotive’s ongoing commitment to investing in modern retail facilities, elevating the customer experience, and supporting long-term operational excellence,” said Daryl Kenningham, President and Chief Executive Officer of Group 1 Automotive. “This renovation strengthens our ability to serve customers throughout the Greater Boston market while showcasing the innovation, luxury, and performance that define the Mercedes-Benz brand.”
$10,000 Donation to the Joe Andruzzi Foundation
In Group 1's tradition of giving back, Mercedes-Benz of Westwood will make a $10,000 donation to the Joe Andruzzi Foundation during the grand opening event. Joe and Jen Andruzzi will accept the donation on behalf of the foundation.
The Joe Andruzzi Foundation provides financial assistance and support to New England cancer patients and their families while they are undergoing treatment, helping ease the everyday financial burdens that often accompany a cancer diagnosis.
EVENT DETAILS
What: Mercedes-Benz of Westwood Grand Opening
When: Thursday, June 4, 6 to 9 p.m.
Where: Mercedes-Benz of Westwood, 425 Providence Hwy, Westwood, MA
Who: Mercedes-Benz of Westwood, Group 1 Automotive, customers, local guests, community partners, Joe and Jen Andruzzi, and Group 1 President and CEO Daryl Kenningham.
About Group 1 Automotive, Inc.
Group 1 owns and operates 250 automotive dealerships, 310 franchises, and 32 collision centers in the United States and the United Kingdom that offer 37 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. (Group 1 Automotive)
Media Contact:
Kimberly Barta
Head of Marketing, Brand and Communications
[email protected]
503-539-0756
Multi-phase renovation introduces expanded showroom, enhanced service drive, AMG Performance Center displays, EV infrastructure, and updated customer amenities
, /PRNewswire/ -- Mercedes-Benz of Westwood, part of Houston-based Group 1 Automotive, Inc. ( NYSE: GPI ), will celebrate the grand opening of its newly renovated dealership on June 4, from 6 to 9 p.m. at 425 Providence Hwy in Westwood, Massachusetts. The event will feature food, drinks, entertainment, a ribbon-cutting ceremony, and remarks from Group 1 President and CEO Daryl Kenningham and CEO Adam Chamberlain of Mercedes-Benz USA.
Guests can learn more about Mercedes-Benz of Westwood, explore current inventory, and schedule service at Mercedes-Benz of Westwood online .
The multi-phase renovation modernized approximately 35,320 square feet of the dealership and expanded the final building to approximately 67,617 square feet, including existing service and parts areas. The project introduced a larger showroom, an expanded service drive, AMG Performance Center displays, large-format digital vehicle stages, upgraded customer lounge spaces, new vehicle delivery areas, and EV infrastructure inside and outside the dealership.
"Customers will see the difference as soon as they arrive," said Michael Espey, General Manager of Mercedes-Benz of Westwood. "The new showroom gives us more room to present vehicles properly, the expanded service drive helps us welcome customers more efficiently, and the upgraded lounge and consultation areas create a more comfortable experience throughout the visit. We invite guests to visit the dealership or explore Mercedes-Benz of Westwood online to see what's new."
Customer areas were also expanded and updated. The renovated dealership includes a larger customer lounge with a self-serve café, customer workstations, and retail display areas. Restroom improvements include individual stalls for added privacy. The expanded service drive accommodates more vehicles indoors, helping customers move through arrival and drop-off more efficiently. EV infrastructure was added throughout the site to support both customer use and dealership operations.
"Mercedes-Benz of Westwood reflects Group 1's continued investment in modern dealership facilities and customer-focused design," said Daryl Kenningham, President and CEO of Group 1 Automotive. "This renovation gives our Westwood team a stronger platform to serve customers today while preparing for the continued growth of electric mobility and digital retail."
$10,000 Donation to the Joe Andruzzi Foundation
In Group 1's tradition of giving back, Mercedes-Benz of Westwood will make a $10,000 donation to the Joe Andruzzi Foundation during the grand opening event. Joe and Jen Andruzzi will accept the donation on behalf of the foundation.
The Joe Andruzzi Foundation provides financial assistance and support to New England cancer patients and their families while they are undergoing treatment, helping ease the everyday financial burdens that often accompany a cancer diagnosis.
EVENT DETAILS
What: Mercedes-Benz of Westwood Grand Opening
When: Thursday, June 4, 6 to 9 p.m.
Where: Mercedes-Benz of Westwood, 425 Providence Hwy, Westwood, MA
Who: Mercedes-Benz of Westwood, Group 1 Automotive, customers, local guests, community partners, Joe and Jen Andruzzi, and Group 1 President and CEO Daryl Kenningham.
About Group 1 Automotive, Inc.
Group 1 owns and operates 250 automotive dealerships, 310 franchises, and 32 collision centers in the United States and the United Kingdom that offer 37 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. (Group 1 Automotive)
Media Contact:
Kimberly Barta
Head of Marketing, Brand and Communications [email protected]
503-539-0756
View original content:https://www.prnewswire.com/news-releases/mercedes-benz-of-westwood-celebrates-grand-opening-of-newly-renovated-luxury-dealership-302790479.html
, /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), an international automotive retailer with operations in the U.S. and U.K., today announced that Melkeya McDuffie, Chief People Officer, has been named to Mogul's Top 100 People Leaders of 2026, joining a distinguished group of executives recognized for shaping culture, talent strategy, and the future of work; a cohort whose honorees represent a wide range of respected global organizations, including NIKE, The Walt Disney Company, The Coca-Cola Company, Netflix, and Procter & Gamble.
"This recognition is well deserved and reflects the impact Melkeya continues to have across our organization," said Daryl Kenningham, President and Chief Executive Officer of Group 1 Automotive. "She brings clarity, compassion, and discipline to the work of building a stronger culture for our people. Her leadership helps ensure that as Group 1 grows, we continue investing in the teams who make our business possible."
At Group 1, McDuffie leads the company's people strategy across a large and diverse automotive retail organization, supporting teams across the United States and United Kingdom. Her work includes advancing employee engagement, leadership development, talent acquisition, organizational effectiveness, and initiatives that strengthen the employee experience across Group 1's dealerships, collision centers, and corporate teams.
"I'm honored to be recognized by Mogul and to be included among so many talented people leaders," said McDuffie. "This recognition reflects the work of an incredible team and the commitment across Group 1 to listen, improve, and create an environment where our people can do their best work."
The full list of Mogul's Top 100 People Leaders of 2026 is available at onmogul.com/people-leaders.
About Group 1 Automotive, Inc.
Group 1 Automotive, Inc. is a leading automotive retailer with dealerships and collision centers in the United States and United Kingdom. Through its dealerships, Group 1 offers new and used vehicle sales, financing, service, parts, and collision repair. The company is committed to delivering exceptional customer experiences while supporting the people and communities it serves.
Media Contact:
Kimberly Barta
Head of Marketing, Brand and Communications
[email protected]
503-539-0756
, /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), an international automotive retailer with operations in the U.S. and U.K., today announced the promotion of Bob Andersen to Vice President, Corporate Development & Pre-Owned Operations.
In this expanded role, Andersen will lead Group 1's U.S. corporate development initiatives, including acquisitions and dispositions, while retaining responsibility for the Company's pre-owned business. Andersen joined Group 1 in 2023 and previously served in multiple C-level roles in both the franchise and independent space with a proven track record in both revenue and rooftop growth. Most recently, Andersen was Group 1's National Director of Pre-Owned Operations.
"Bob has consistently demonstrated strong leadership, sharp strategic insight, and a deep understanding of our business," said Daryl Kenningham, Group 1's President and Chief Executive Officer. "His ability to work effectively across our organization and with external partners makes him well-suited to lead our corporate development efforts."
Andersen will be supported by Group 1's Corporate Development, Transactions, and Real Estate team, which brings together expertise in deal strategy, pipeline development, financial diligence, valuation, transaction execution, real estate coordination, and cross-functional partnership. The team-based approach supports Group 1's ability to evaluate opportunities with discipline and navigate transactions effectively.
"Acquisitions continue to play an important role in Group 1's long-term growth strategy," said Andersen. "Our focus is on scaling in our existing regional markets where we can further leverage the Group 1 brand, while also evaluating new markets that bring meaningful opportunity. Group 1 offers sellers a strong path forward by aligning their local presence with enterprise-grade innovation and tailwinds."
Since 2004, Group 1 has grown total revenue from $5.4 billion to $22.6 billion, with acquisitions serving as a meaningful accelerator in key years. The announcement reinforces Group 1's continued focus on disciplined growth, operational excellence, and long-term value creation.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 Automotive, Inc. is a leading automotive retailer with dealerships and collision centers in the United States and United Kingdom. Through its dealerships, Group 1 offers new and used vehicle sales, financing, service, parts, and collision repair. The company is committed to delivering exceptional customer experiences while supporting the people and communities it serves.
Media Contact:
Kimberly Barta
Head of Marketing, Brand and Communications
[email protected]
503-539-0756
Shares of DigitalOcean Holdings (DOCN 0.86%) spiked on Tuesday after the cloud computing provider highlighted the torrid growth in its artificial intelligence (AI)-focused offerings.
Image source: Getty Images.
A cloud for AI agents DigitalOcean's revenue jumped 22% year over year to $258 million in the first quarter. Its earnings before interest, taxes, depreciation, and amortization (EBITDA), in turn, leaped 21% to $105 million.
DigitalOcean's AI-related gains were stunning. Its AI customer annual run rate revenue (ARR) soared 221% to $170 million.
Today's Change
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Current Price
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With the launch of its AI-Native Cloud in April, DigitalOcean is positioning itself as a leading platform for AI agents. Its new Inference Engine is helping to reduce the costs of using AI models to make decisions and predictions.
DigitalOcean also acquired Katanemo Labs last month to further bolster its agentic AI capabilities.
"The Inference and agentic era needs its own cloud," CEO Paddy Srinivasan said. "DigitalOcean built it, and our record Q1 results demonstrate the strength of our platform."
Accelerating growth These encouraging results drove DigitalOcean to lift its full-year guidance. Management now sees revenue rising by roughly 26% to $1.14 billion in 2026.
Better still, DigitalOcean expects its revenue growth to accelerate to over 50% in 2027.
"We continue to invest in what we believe is a generational market opportunity, adding approximately 60 MW [megawatts] of incremental committed data center capacity that will come online throughout 2027 to support growing customer demand," Srinivasan said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DigitalOcean. The Motley Fool has a disclosure policy.
DigitalOcean reported adjusted earnings per share of 44 cents, beating the consensus estimate of 27 cents. In addition, it reported revenue of $257.90 million, beating the consensus estimate of $249.74 million.
DigitalOcean raised its fiscal-year 2026 adjusted earnings per share guidance from between 75 cents and $1.00 to between $1.10 and $1.20, versus the consensus estimate of $1.02. Furthermore, it raised its fiscal-year 2026 revenue guidance from between $1.07 billion and $1.10 billion to between $1.13 billion and $1.14 billion, versus the consensus estimate of $1.09 billion.
The company anticipates second-quarter adjusted earnings per share between 20 cents and 23 cents, versus the consensus estimate of 24 cents. It sees revenue of between $272 million and $274 million, versus the consensus estimate of $260.75 million.
DigitalOcean shares rose 3.3% to trade at $157.73 on Wednesday.
These analysts made changes to their price targets on DigitalOcean following earnings announcement.
Barclays analyst Raimo Lenschow maintained the stock with an Overweight rating and raised the price target from $105 to $183. Piper Sandler analyst James Fish maintained DigitalOcean with a Neutral and raised the price target from $98 to $155. Morgan Stanley analyst Josh Baer maintained the stock with an Overweight rating and raised the price target from $75 to $175. Considering buying DOCN stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Digital Ocean NYSE: DOCN is an AI infrastructure play potentially beyond compare. It not only owns and operates a network of high-performance data centers but also has the software stack to support them. It is a cloud computing solution for small and medium-sized businesses, enabling them access and scalability alongside ease of use, and the business is gaining traction. Plans include expanding its footprint over the coming year, driven by a rising tide of AI demand; the question for investors is how high this AI play can go.
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DigitalOcean Accelerates, Outperforms, and Raises GuidanceDigitalOcean had a solid Q1 earnings report, with revenue growth topping 22%, accelerating sequentially and compared to the prior year.
DigitalOcean Today
$172.44 -2.32 (-1.32%)
As of 09:44 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$25.56▼
$184.46P/E Ratio75.51
Price Target$146.36
Revenue outpaced the consensus by a substantial margin, indicating a fundamental misunderstanding of the growth opportunity, and is expected to continue accelerating in the upcoming quarters. Growth was driven by large clients and AI demand, with annual run-rate revenue (ARR) from large clients up by 180% and AI-related ARR up by 221%.
Margin news was mixed, with margin contracting in some comparisons and expanding in others. The critical details are that the core business is profitable, profitability improves with scale, and weaknesses are tied to spending increases. Spending increases aim to increase capacity and underpin management's decision to increase guidance. They now expect at least 50% revenue growth in the subsequent fiscal year and may be cautious in the estimate. The company is already expanding its footprint, and pricing is a factor to consider as well. Demand for GPU capacity is driving rental prices through the roof, and DigitalOcean is exposed to the market.
Strong Market Getting Stronger, But Upside May Be LimitedThe MACD indicator suggests that this rally is just getting started. It is a measure of market momentum and can be used to gauge whether a market is strengthening or weakening. In this case, the convergence between the MACD peak and price action suggests the market is strengthening and likely to continue higher over the long term, with periodic corrections aside.
Analysts, institutions, and valuation suggest the upside may be limited, but they are not the only factors in play. Analysts rate the stock as a conviction Moderate Buy with 75% Buy-side bias, but price action has outpaced the consensus price target. The likely outcome is that DOCN stock price corrects at some point, touching base with the consensus level before continuing its advance in the longer term. Additionally, institutions were selling heavily in late 2025 and early 2026, which presents a headwind for the market and could amplify any correction that forms.
Valuation is the biggest concern, as the stock trades at over 125X its current-year earnings forecast. The market is pricing in a robust outlook, but even so, valuation is expected to fall only slightly over the next few years, leaving the stock highly valued relative to its forecasts and tech peers. The worst-case scenario is that this company fails to meet its outlook, leading to a market reset and a massive stock price correction, but that is unlikely given the recent Q1 results and the guidance update.
2 Catalysts for DOCN Price Action May StrengthenWhile analysts and institutions limit the upside potential, they also provide support for this market. The market has outrun the consensus price target, but the trend remains positive, with recent revisions leading it into the high end of the range. Those revised price targets would be sufficient for more than 30% upside from the $150 level, where the DOCN stock price surged following the report. Institutions, on the other hand, sold heavily in early 2026 but reverted to buying in early Q2 and may continue to accumulate as the quarter progresses.
Catalysts for this stock include its aggressive expansion. The plans include more than tripling total capacity by early 2028, potentially driving revenue growth into the triple-digit range and sustaining it for several quarters. Risks include the cost of buildout, including a nearly-$1 billion equity raise, and the threat of dilution. As it stands, the share count is up approximately 10% at the end of Q1, and though the company is well-capitalized, additional funding is not out of the question. Delays, missteps, and cost-overruns will be reflected in the stock price.
DigitalOcean is leaning on debt to fund its expansion, and its balance sheet can handle the load. Highlights at Q1’s end include increased cash, current and total assets, with long-term debt and liabilities declining, equity improving, a net-cash position, and low total leverage. The likely outcome is that cash flow will enable debt reduction as the buildout progresses, with cash flow increasing over time and equity rising alongside it.
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Key Takeaways DOCN topped Q1 2026 estimates: revenue $258M ( 22%), non-GAAP EPS 44 despite y/y drop.DigitalOcean AI Customer ARR reached $170M, up 221% YoY; AI-Native Cloud debuted at Deploy 2026.DOCN lifted 2026 revenue outlook to $1.130B-$1.145B as committed data center capacity rose to ~135MW. DigitalOcean Holdings (DOCN - Free Report) posted a sizable first-quarter 2026 earnings beat, even as profitability moved lower from the year-ago period. Non-GAAP earnings came in at 44 cents, down 21.4% year over year, but the figure beat the Zacks Consensus Estimate by 63%.
Revenue was $258.0 million, up 22.4% year over year and beat the consensus by 3.1%. The quarter’s outperformance was supported by retention and expansion in larger customer cohorts, with Annual Run-Rate Revenues (ARR) ending the period at $1.032 billion, up 22% year over year. AI Customer ARR was $170 million, which jumped 221% year over year.
DOCN shares rose 5.4% to close at $160.99 on May 6, following the results.
DOCN’s Larger Customer Cohorts Drove the UpsideDOCN’s release underscored that growth continues to be led by its biggest customers. Revenue from $1 million-plus customers rose 179% year over year to $183 million in ARR, and that cohort now represents 18% of total revenues.
Momentum was also visible one tier down. Revenues from $500,000-plus customers climbed 132% year over year and represents 21% of total revenues, while revenues from $100,000-plus customers rose 73% and now represent 30% of total revenues. Management tied the quarter’s revenue beat to strong retention in top Digital Native Enterprise cohorts and continued expansion among top cloud and AI-native customers.
DOCN’s AI-Native Cloud Push Expanded the Platform StoryDigitalOcean positioned the quarter around product breadth, highlighting the launch of its AI-Native Cloud at Deploy 2026. The company said it delivered more than 15 product launches across five integrated layers: infrastructure, core cloud, inference, data and managed agents.
The company has highlighted recent AI-native wins, including Cursor, Ideogram and Higgsfield AI, as examples of customers building production inference and related workloads on the platform, with AI customer ARR now generated primarily from non-bare metal services.
DOCN’s Margins Mixed as Operating Costs RoseDOCN’s cost structure showed clear investment alongside solid operating profitability. Gross profit was $144.7 million, translating to a gross margin of 56.1%, down from 61.5% in the year-ago quarter.
Operating expenses increased across the board. Research and development expense climbed to $48.8 million from $39.6 million, while sales and marketing rose to $21.7 million from $19.4 million. General and administrative expense increased to $37.6 million from $32.8 million.
On a non-GAAP basis, adjusted operating income was $64 million with a 25% margin (contracted from 30% reported in the year-ago quarter), while adjusted EBITDA was $104.6 million and the adjusted EBITDA margin held at 41% (unchanged year over year).
DigitalOcean’s Cash Flow Shifted as Investment AcceleratedThe balance sheet expanded sharply following the company’s follow-on offering, with cash, cash equivalents and restricted cash ending the quarter at $741.5 million. Net proceeds from the follow-on public offering were $888.8 million, and the company repaid $500.0 million of its term loan facility principal while also drawing $120.0 million during the quarter.
DigitalOcean generated $46.9 million of net cash from operating activities in the first quarter, down from $64.1 million a year earlier, reflecting working capital movement and higher cash interest costs. Capital spending remained meaningful, with $40 million of property and equipment expenditures and $4.7 million of internal-use software development.
Adjusted free cash flow was positive but modest at $2.2 million, compared with negative $0.8 million in the year-ago quarter.
DOCN Raised Its 2026 Outlook as Capacity Plans ExpandedDOCN guided second-quarter revenue to $272 million-$274 million, implying 24%-25% year-over-year growth. The company expects an adjusted EBITDA margin of 37%-38% and non-GAAP earnings between 20 cents per share and 23 cents per share.
For 2026, DigitalOcean raised its revenue outlook to $1.130 billion-$1.145 billion, calling for 25%-27% year-over-year growth, alongside an adjusted EBITDA margin of 37%-39% and an adjusted free cash flow margin of 9%-12%. Non-GAAP earnings are expected to be $1.10-$1.20 per share.
Management also pointed to incremental committed data center capacity of about 60 megawatts, bringing total committed capacity to roughly 135 megawatts, and said it now expects 2027 revenue growth to exceed 50%, with 2027 revenues projected to exceed $1.7 billion.
Zacks Rank & Stocks to ConsiderDigitalOcean currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Docebo (DCBO - Free Report) , Cisco Systems (CSCO - Free Report) and Keysight Technologies (KEYS - Free Report) . Docebo and Keysight Technologies sport a Zacks Rank #1 (Strong Buy) each at present, while Cisco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Docebo is set to report its quarterly results on May 8, while both Cisco and Keysight Technologies are set to report their quarterly results on May 13. Year to date, shares of Cisco and Keysight Technologies have returned 18.8% and 80.4%, respectively, while Docebo has dropped 10%.
DigitalOcean (DOCN 0.86%) is a cloud computing company that provides hundreds of services to small and medium-sized businesses (SMBs), enabling them to thrive in the digital age. The company is investing aggressively in artificial intelligence (AI) infrastructure to help its customers deploy this revolutionary technology in a simple and cost-effective way.
On May 5, DigitalOcean released its first-quarter 2026 operating results. The report was so strong that its stock blasted higher by 40%, to close at $152.77 on the day. According to The Wall Street Journal, even the most bullish analyst on Wall Street had predicted the stock would reach just $121 over the next 12 months.
Were analysts underestimating DigitalOcean, or is it simply overvalued now?
Image source: Getty Images.
DigitalOcean continues to expand its AI product portfolio The cloud industry is dominated by trillion-dollar giants like Amazon and Microsoft, but they mostly target large enterprises because they have the highest spending potential. This leaves the SMB cloud market wide open for providers like DigitalOcean. It captures these customers by offering affordable pricing, highly personalized support, and a simple dashboard to make deploying services easy.
In the first quarter, the company launched a new platform, DigitalOcean AI-Native Cloud, comprising five distinct layers. The bottom (and most important) layer is infrastructure, which includes 20 data centers fitted with the latest AI chips from suppliers like Nvidia and Advanced Micro Devices. DigitalOcean rents the computing capacity to its SMB customers, which can use it to deploy AI applications.
The other four layers work together to help SMBs turn all of that computing power into working AI software, whether they want to build data analysis tools, chatbots, or agents. The platform offers access to the latest AI foundation models from leading start-ups like OpenAI, which can help customers accelerate their development goals.
DigitalOcean allows customers to start with one chip and scale up as needed, which is perfect for running small AI workloads like web-based customer-service chatbots or agents. And the company is staying true to its original cloud business model, allowing customers to pay as they go with no lock-in contracts.
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DigitalOcean just significantly raised its revenue growth forecast DigitalOcean ended the first quarter with $1.03 billion in annual run-rate revenue (ARR), a 22% increase from the year-ago period. It was the third consecutive quarter of accelerating growth, highlighting the company's incredible momentum.
AI customers, specifically, accounted for $170 million of DigitalOcean's ARR at the end of the first quarter, and that figure soared by an eye-popping 221% year over year. Simply put, products like the AI-Native Cloud are quickly becoming the growth engine for the entire company, and that's likely to continue, as demand for computing capacity outstrips supply.
For that reason, DigitalOcean raised $800 million from investors in March, which will go toward building more AI data centers. As more capacity comes online, revenue growth is likely to accelerate further. In fact, management just raised its 2027 growth forecast from 30% to 50%, which is a big reason why DigitalOcean stock rocketed higher on May 5.
DigitalOcean stock is no longer cheap Based on DigitalOcean's trailing-12-month revenue, its stock is trading at a price-to-sales (P/S) ratio of 17, which is twice its long-term average of 8.1. If we assume the company grows its revenue by more than 50% in 2027, its forward P/S ratio is around 9.2.
Data by YCharts.
From that perspective, there probably isn't much upside left in the tank in the short term. In my opinion, the stock would be a good buy right now if the company could maintain a similar rate of revenue growth in 2028 and beyond, but management hasn't provided any long-term guidance just yet.
In light of DigitalOcean's spectacular first-quarter report, the stock has blown past even the most bullish price targets on Wall Street, and I expect many analysts to raise their forecasts soon. However, since the stock certainly isn't cheap, investors who buy it today need to maintain a long-term view of at least three years (but preferably more) to maximize their chances of earning a positive return. That time frame will give DigitalOcean time to grow into its valuation.
DigitalOcean Holdings, Inc. (DOCN) shares rise 279% since last year’s first institutional outlier signal.
DOCN is a cloud computing infrastructure company benefitting from the AI build-out; it operates in the U.S., Netherlands, Germany, Canada, Singapore, and other locations, and just introduced an AI-native cloud. In its first-quarter fiscal 2026 earnings, DOCN reported revenue of $258 million (a 22% year-over-year gain), adjusted EBITDA of $105 million (41% margin), and raised annual revenue guidance to a high point of $1.145 billion.
It’s no wonder DOCN shares are up 213% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
DigitalOcean Brings in Big Money Institutional volumes reveal plenty. In the last year, DOCN has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in DOCN shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with DigitalOcean.
DigitalOcean Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DOCN has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +37.9%.
Now it makes sense why the stock has been generating Big Money interest. DOCN has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
DigitalOcean has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s up 279% since its first appearance on the rare Outlier 20 report in October 2025. The blue bars below show when DOCN was a top pick…institutional inflows drive gains:
Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
DigitalOcean Price Prediction The DOCN action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in DOCN at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
Nvidia (NVDA +0.64%) remains the center of the artificial intelligence boom, but the stock is up just 15% in 2026, both because investors worry the current pace of AI spending is unsustainable and because they question the durability of Nvidia's dominance in the AI infrastructure market.
Meanwhile, DigitalOcean (DOCN 0.86%) is a little-known cloud computing company whose aggressive expansion into AI services has led to tremendous shareholder returns. The stock is up 240% this year, and most Wall Street analysts say it's still undervalued. The median target price of $177 per share implies 8% upside from its current share price of $164.
Here's what investors should know about these AI stocks.
Image source: Getty Images.
Nvidia: The dominant supplier of AI infrastructure Nvidia dominates the artificial intelligence infrastructure. The company is best known for its GPUs, chips that accelerate AI workloads, but its greatest competitive strength lies in vertical integration. Nvidia builds rack-scale AI systems comprising chips and networking, and it supplements its hardware with an unmatched software ecosystem of developers.
That full-stack strategy affords Nvidia a durable competitive moat. The company has nearly 90% market share in AI accelerators, and it captures over 40% of AI data center spending. Nvidia may lose some market share in the coming years as custom chips (e.g., Alphabet's TPU) become more popular, but it will almost certainly remain the dominant supplier of AI infrastructure.
"Our pace of innovation, particularly at our scale, is unmatched, fueled by an annual R&D budget approaching $20 billion and our ability to extreme co-design across compute and networking across chips, systems, algorithms, and software," CFO Colette Kress recently told analysts. "We intend to deliver x-factor leaps in performance per watt every generation and extend our leadership position over the long term."
Nvidia has an important catalyst on the horizon in the upcoming launch of its Vera Rubin platform, which brings together Rubin GPUs and Vera CPUs. It works with Groq 3 LPUs (language processing units) to speed up inference tasks. When paired with LPUs, Rubin GPUs deliver up to 35 times more throughput per watt than the previous generation of Blackwell GPUs.
Wall Street estimates Nvidia's adjusted earnings will increase at 53% annually through the fiscal year ending in January 2028. That makes the current valuation of 45 times adjusted earnings look quite reasonable. It's not too late for patient investors to buy Nvidia.
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DigitalOcean: The cloud company simplifying AI services DigitalOcean provides cloud infrastructure and platform services to small and medium-sized businesses, particularly those in the technology sector. Hyperscalers like Amazon and Microsoft undoubtedly have broader portfolios, but their products are built for large customers with complex needs, deep pockets, and large IT departments.
By comparison, DigitalOcean offers fewer and less advanced services, but its platform is designed to simplify cloud computing. Its intuitive user interface with click-and-go options lets developers spin up servers and deploy applications quickly, often in just a few minutes. DigitalOcean also provides no-cost 24/7 technical support to all customers.
The number of inference tokens processed daily is projected to grow over tenfold by 2030, meaning demand for AI infrastructure is expected to increase substantially. DigitalOcean hopes to capitalize on this boom with its AI-Native Cloud, which brings together the servers and software needed for agentic workloads. CEO Paddy Srinivasan called it the "most significant product launch" in company history.
DigitalOcean reported solid first-quarter financial results. Revenue increased 22% to $258 million, driven by exceptionally strong sales growth among AI customers. Non-GAAP net income dropped 21% to $0.44 per diluted share, but that was due to significant spending on AI infrastructure. "We beat every financial target we shared in our last call," Srinivasan told analysts.
DigitalOcean also gave very encouraging guidance, bolstered by what Srinivasan sees as a "generational market opportunity" in AI. The company says revenue growth will hit 26% in 2026, before accelerating to over 50% in 2027. Management previously predicted revenue would grow 30% next year, but the company recently secured 60 megawatts of additional compute capacity that will boost sales.
Wall Street estimates DigitalOcean's adjusted earnings will grow at 23% annually through 2028. That makes the current valuation of 81 times adjusted earnings look expensive. The market is excited by the upward revision to revenue guidance, and the stock has climbed more than 50% since the company reported earnings on May 5. I think investors should wait for a pullback before buying shares, or at least keep any purchases very small.
On May 12, 2026, DigitalOcean Holdings Inc DOCN shares fell 5.0% today, closing at $155.72. This decline comes despite a remarkable performance over the past year, with the stock soaring 392.6%. DOCN has experienced a 52-week high of $164.77 and a low of $25.56, highlighting significant volatility.
GF Value™ verdict: Current price of $155.72 is 250.0% overvalued compared to the GF Value™ of $44.49.GF Score™ of 75/100 indicates that DOCN is above average in overall quality and performance.Notable signal: Insiders sold $63.1 million in shares over the past three months, with no buying activity reported. Is DOCN Overvalued or Undervalued? According to the GF Value™, DigitalOcean is significantly overvalued at its current price of $155.72. The estimated fair value of $44.49 indicates a substantial 250.0% downside risk. This overvaluation suggests that the stock may be trading at a premium compared to its intrinsic value, making it less attractive for potential investors. The significant gap between the current price and the GF Value™ underscores the need for caution, as the potential for a price correction exists if market sentiment shifts.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current overvaluation, investors might consider the risks associated with holding or entering a position in DOCN at this price level.
How Does DOCN's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)68.0x41.6x (5-Year Median) Forward P/E138.7xN/A The current P/E ratio of 68.0x is significantly above its 5-year median of 41.6x, indicating that DOCN is trading at a premium compared to its historical valuation. Moreover, the forward P/E of 138.7x further emphasizes the high expectations that the market has for the company's future earnings. This P/E analysis aligns with the GF Value™ verdict of overvaluation, suggesting that the stock may not be justified at its current price based on historical earnings metrics.
What Does DOCN's GF Score™ Tell Us? MetricRating GF Score™75/100 Financial Strength6/10 Profitability5/10 Growth10/10 Valuation1/10 Momentum6/10 The GF Score™ of 75/100 indicates that DigitalOcean is above average in terms of overall quality and performance. Its strongest aspect is growth, rated at 10/10, reflecting the company’s robust revenue expansion and market position. However, the valuation rank of 1/10 is concerning, highlighting the stock's significant overvaluation relative to its intrinsic value. The financial strength and profitability ranks suggest moderate stability, but they do not compensate for the valuation concerns. Overall, while there are positive growth prospects, the valuation remains a critical weakness.
What Are Insiders Doing with DOCN Stock? In the last three months, insiders at DigitalOcean have sold a substantial $63.1 million worth of shares, with no buying activity reported. This pattern of selling may indicate a lack of confidence from those closest to the company regarding its current valuation or future performance. High insider selling can often be a red flag for potential investors, suggesting that insiders may believe that the stock price is stretched or that they foresee challenges ahead.
What This Means for Investors Based on the GF Value™ assessment, DigitalOcean Holdings Inc DOCN is currently overvalued. With a current price significantly exceeding the estimated fair value, potential investors may want to exercise caution. The high P/E ratio and substantial insider selling further reinforce the concerns regarding the stock's valuation, indicating a potential risk for those considering an investment at this time.
For the complete analysis, visit the DigitalOcean Holdings Inc DOCN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is DOCN's GF Score™?
DOCN has a GF Score™ of 75/100, suggesting that it is above average in terms of quality and performance potential.
Is DOCN overvalued or undervalued?
DOCN is currently overvalued, with a significant discrepancy between its market price and the GF Value™ of $44.49.
What is DOCN's P/E ratio?
DOCN's P/E ratio is 68.0x, which is 64% above its 5-year median of 41.6x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Shares of cloud computing company DigitalOcean (DOCN 0.86%) shot up by 40% on May 5 after the company released terrific results for the first quarter of 2026, and anyone following the company's business model may not be entirely surprised by this big pop.
In fact, it was just a few days ago that I predicted DigitalOcean stock could become a multibagger by the end of 2026. So, it was easy to see why investors piled into this cloud stock after it posted a significant surge in AI revenue last quarter and raised its 2027 guidance.
Let's take a closer look at what's working for DigitalOcean and check if this high-flying tech stock has room for more upside.
Image source: Getty Images.
AI has supercharged DigitalOcean's growth DigitalOcean operates an on-demand cloud computing platform, primarily serving start-ups, developers, and small businesses. The company's focus on making it simpler and cheaper for smaller enterprises to deploy and scale AI applications in the cloud explains why demand for its AI offerings is growing.
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DigitalOcean's annual run rate revenue (ARR) from its AI customers soared 221% year over year in Q1 to $170 million. This was well above the 22% growth in its overall ARR last quarter. DigitalOcean's focus on offering an end-to-end cloud computing platform for running agentic artificial intelligence (AI) and inference applications in a more cost-effective, simpler way is resonating with customers.
DigitalOcean customers can rent cloud computing infrastructure, including compute, storage, and networking, from the company. At the same time, its software-as-a-service (SaaS) solutions enable them to build, deploy, and scale AI applications. It is worth noting that DigitalOcean's inference services are proving hugely popular. The company's ARR for its inference services increased by a whopping 487% year over year in Q1.
DigitalOcean's management is confident that the growing adoption of AI inference applications will be a long-term tailwind for the company. This explains why DigitalOcean is building more data centers to capture the available end-market opportunity. The company plans to add 31 megawatts (MW) of data center capacity this year, followed by another 60 MW in 2027 and 2028.
This new capacity should help accelerate DigitalOcean's growth, especially considering that its revenue backlog is now growing at a healthy pace. The company reported a 17.3x increase in its remaining performance obligations (RPO) last quarter to $243 million, which was well above the 22% increase in revenue to $258 million.
RPO is the total value of contracts that a company has yet to fulfill at the end of a period. The exponential growth in this metric suggests that DigitalOcean's growth is poised to accelerate, which explains why it has significantly upgraded its guidance.
DigitalOcean now expects 26% revenue growth in 2026, up from its earlier estimate of 21%. However, it sees a significant jump of more than 50% in revenue in 2027, well above the 30% growth it guided for in February this year. But will this upgraded forecast be enough for it to deliver more gains?
Investors can still expect substantial upside DigitalOcean stock is already up 223% in 2026 as of this writing. However, it can continue to climb, as its guidance clearly suggests stronger growth is in the cards for the company. This explains why analysts have significantly upgraded their revenue growth expectations.
Data by YCharts
Don't be surprised if DigitalOcean ends up exceeding Wall Street's growth expectations. But even if it achieves $2.47 billion in revenue in 2028 and trades at even 10 times sales at that time, a discount to its current price-to-sales ratio of 18.6, its market cap could jump to $25 billion. That suggests potential gains of 47% over its current market cap.
Of course, I have assumed that DigitalOcean will trade at a premium to the U.S. tech sector's average of 7.5 after three years, but this can be justified by the company's ability to grow revenue much faster than analysts' expectations. So, you can still consider adding this cloud stock to your portfolio as it is primed to deliver more upside.
BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud, purpose-built for inference and agentic workloads, today announced that Chief Executive Officer Paddy Srinivasan and Chief Financial Officer Matt Steinfort will participate in a fireside chat at JP Morgan's Global Technology, Media and Communications Conference on Tuesday May, 19 at 11:15 a.m. (PT) / 2:15 p.m. (ET). A live webcast will be available at https://jpmorgan.metameetings.net/events/tmc26.
BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean (NYSE: DOCN) today announced that Hippocratic AI's Polaris system has reached 10 million patient calls at a 99.9% clinical safety score, running on NVIDIA HGX™ B300 GPUs on DigitalOcean's AI-Native Cloud, a five-layer, integrated stack purpose built for production AI. This milestone is the result of DigitalOcean engineering its inference platform for the latency, reliability, and concurrency demands of safety-critical healthcare workloads, delive.
DigitalOcean (NYSE: DOCN) today announced that Hippocratic AI's Polaris system has reached 10 million patient calls at a 99.9% clinical safety score, running on NVIDIA HGX™ B300 GPUs on DigitalOcean's AI-Native Cloud, a five-layer, integrated stack purpose built for production AI. This milestone is the result of DigitalOcean engineering its inference platform for the latency, reliability, and concurrency demands of safety-critical healthcare workloads, delivering 2× prefill speedup and ~30% higher per-node throughput, developed in close collaboration with both NVIDIA and Hippocratic AI. The results demonstrate why an increasing number of production AI workloads are choosing DigitalOcean's AI-Native Cloud as the purpose-built home for inference at scale.
Hippocratic AI's Polaris system has reported a 99.9% clinical safety score and an average patient rating of 8.95 out of 10 across more than 10 million real patient calls, supported by human evaluation involving more than 7,500 clinical staff. With more than 180 million patient interactions to date across chronic disease management, medication adherence, care gap closure, and clinical scheduling, Hippocratic AI is operating at a scale where the line between infrastructure performance and patient safety disappears.
"Polaris is built for the realities of clinical care: long sessions, real human conversations, zero room for error. With DigitalOcean and NVIDIA, we have early access to NVIDIA HGX™ B300 and the optimization techniques it unlocks, including NVFP4 quantization,” said Debajyoti Datta, Co-Founder, Hippocratic AI. “That is what allows us to hold a 400-millisecond time-to-first-token at production scale, on the clinical conversations our patients depend on."
Engineered to Support Safety-Critical Inference
Production healthcare AI breaks the assumptions most inference stacks are built on. Sessions are long. Tokens are time-sensitive. A dropped connection in the middle of a care plan retrieval is not a UX bug. It is a clinical interruption. Meeting that bar requires deep platform engineering and reliability at scale, the kind that off-the-shelf GPU access cannot provide and that only a purpose-built inference cloud can deliver.
Over the past year, the engineering teams at DigitalOcean worked in close collaboration with Hippocratic AI to optimize every layer of the inference stack. DigitalOcean engineered its AI-Native Cloud with hardware-aware scheduling, optimized inference runtimes, and platform-level scaling tuned for sustained high-concurrency workloads. Hippocratic AI's model team contributed proprietary inference work, including FP8 and NVFP4 quantization, KV-cache optimization, custom MoE kernels, and a cache-aware routing architecture that maximizes KV-cache hit rate and context reuse across long-horizon clinical sessions. NVIDIA provided early access to next-generation HGX™ B300 hardware, alongside engineering collaboration on Hopper and Blackwell architecture.
The combined result, on long-context clinical sessions, is approximately 30% higher per-node throughput and a 2× reduction in prefill latency, compared to a prior-generation stateless serving configuration. These gains build on the production efficiency Hippocratic AI announced earlier this month at DigitalOcean Deploy, where the company reported 2× production inference throughput and a 40% reduction in end-to-end P99 latency on the AI-Native Cloud.
"What Hippocratic AI has built in healthcare AI is remarkable, hundreds of millions of real patient interactions across some of the most complex and sensitive moments in people's lives,” said Paddy Srinivasan, Chief Executive Officer, DigitalOcean. “Delivering that at 99.9% clinical safety is what production AI looks like when it matters most. This is what purpose-built inference delivers, and it's what our AI-Native Cloud makes possible. Hippocratic AI's results are the proof."
Among the First Production Customers on NVIDIA HGX™ B300
Having Hippocratic AI among the first production customers on NVIDIA HGX™ B300 GPUs, made available through DigitalOcean's early work with NVIDIA, means DigitalOcean is validating its inference platform against one of the most demanding real-world workloads, not synthetic benchmarks. For workloads where every token affects clinical experience, Blackwell Ultra unlocks a step-change in capacity per node, allowing Hippocratic AI to support more concurrent sessions at the same latency targets and to extend context windows on long-horizon clinical conversations.
"The demands of safety-critical AI workloads are fundamentally different from consumer applications,” said Dave Salvator, Director of Accelerated Computing Products, NVIDIA. “DigitalOcean and Hippocratic AI are demonstrating how tightly integrated infrastructure and inference optimization, built on NVIDIA Hopper and Blackwell architecture, can deliver both performance and reliability at scale."
A Different Bar for Healthcare AI Infrastructure
The infrastructure requirements of safety-critical AI are not the requirements of consumer or enterprise AI scaled up. They are different in kind. Latency translates directly into clinical workflow quality. Reliability is measured in successful patient interactions, not nine-fives uptime. Cost efficiency determines whether a healthcare AI workload can scale to serve a population, not just a pilot.
In healthcare AI, infrastructure is not just about performance. It is foundational to patient safety. The Hippocratic AI deployment on the DigitalOcean AI-Native Cloud reflects this shift, and the platform engineering behind it shows what production AI looks like when infrastructure, model optimization, and hardware are designed together for outcomes that matter.
Read the full customer case study, including a video interview with Hippocratic AI Co-Founder Debajyoti Datta, at digitalocean.com/customers/hippocratic-ai.
About DigitalOcean
DigitalOcean is the AI-Native Cloud purpose-built for the inference and agentic era. Its five-layer integrated platform - spanning infrastructure, core cloud, inference, data, and managed agents - is open throughout with no vendor lock-in, giving builders everything they need to start fast, scale production AI workloads, and improve unit economics. More than 650,000 customers globally trust DigitalOcean to build, ship, and scale their applications. Learn more at digitalocean.com.
About Hippocratic AI
Hippocratic AI has developed the safest generative AI Agents for healthcare. The company believes that generative AI has the ability to bring healthcare abundance to every person in the world. The company focuses on building non-diagnostic patient-facing clinical AI agents and does not allow its agents to be used to prescribe or diagnose. Hippocratic AI has received a total of $404 million in funding and is backed by leading investors, including Andreessen Horowitz, General Catalyst, Kleiner Perkins, Avenir, NVIDIA's NVentures, Premji Invest, SV Angel, Google’s CapitalG, and numerous health systems. Learn more at https://hippocraticai.com/.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260527711308/en/
BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud, purpose-built for inference and agentic workloads, today announced that Chief Financial Officer Matt Steinfort and SVP of Corporate Development and Investor Relations Radu Patrichi will participate in a fireside chat at the Bank of America Global Technology Conference on Wednesday June, 3 at 2:00 p.m (PT) / 5:00 p.m (ET). A live webcast will be available at https://bofa.veracast.com/webcasts/bofa/.
It has been about a month since the last earnings report for DigitalOcean Holdings, Inc. (DOCN - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is DigitalOcean due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for DigitalOcean Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
DOCN Q1 Earnings Beat Estimates, Revenues Up AI-Native Customer DemandDigitalOcean posted a sizable first-quarter 2026 earnings beat, even as profitability moved lower from the year-ago period. Non-GAAP earnings came in at 44 cents, down 21.4% year over year, but the figure beat the Zacks Consensus Estimate by 63%.
Revenue was $258.0 million, up 22.4% year over year and beat the consensus by 3.1%. The quarter’s outperformance was supported by retention and expansion in larger customer cohorts, with Annual Run-Rate Revenues (ARR) ending the period at $1.032 billion, up 22% year over year. AI Customer ARR was $170 million, which jumped 221% year over year.
DOCN’s Larger Customer Cohorts Drove the UpsideDOCN’s release underscored that growth continues to be led by its biggest customers. Revenue from $1 million-plus customers rose 179% year over year to $183 million in ARR, and that cohort now represents 18% of total revenues.
Momentum was also visible one tier down. Revenues from $500,000-plus customers climbed 132% year over year and represents 21% of total revenues, while revenues from $100,000-plus customers rose 73% and now represent 30% of total revenues. Management tied the quarter’s revenue beat to strong retention in top Digital Native Enterprise cohorts and continued expansion among top cloud and AI-native customers.
DOCN’s AI-Native Cloud Push Expanded the Platform StoryDigitalOcean positioned the quarter around product breadth, highlighting the launch of its AI-Native Cloud at Deploy 2026. The company said it delivered more than 15 product launches across five integrated layers: infrastructure, core cloud, inference, data and managed agents.
The company has highlighted recent AI-native wins, including Cursor, Ideogram and Higgsfield AI, as examples of customers building production inference and related workloads on the platform, with AI customer ARR now generated primarily from non-bare metal services.
DOCN’s Margins Mixed as Operating Costs RoseDOCN’s cost structure showed clear investment alongside solid operating profitability. Gross profit was $144.7 million, translating to a gross margin of 56.1%, down from 61.5% in the year-ago quarter.
Operating expenses increased across the board. Research and development expense climbed to $48.8 million from $39.6 million, while sales and marketing rose to $21.7 million from $19.4 million. General and administrative expense increased to $37.6 million from $32.8 million.
On a non-GAAP basis, adjusted operating income was $64 million with a 25% margin (contracted from 30% reported in the year-ago quarter), while adjusted EBITDA was $104.6 million and the adjusted EBITDA margin held at 41% (unchanged year over year).
DigitalOcean’s Cash Flow Shifted as Investment AcceleratedThe balance sheet expanded sharply following the company’s follow-on offering, with cash, cash equivalents and restricted cash ending the quarter at $741.5 million. Net proceeds from the follow-on public offering were $888.8 million, and the company repaid $500.0 million of its term loan facility principal while also drawing $120.0 million during the quarter.
DigitalOcean generated $46.9 million of net cash from operating activities in the first quarter, down from $64.1 million a year earlier, reflecting working capital movement and higher cash interest costs. Capital spending remained meaningful, with $40 million of property and equipment expenditures and $4.7 million of internal-use software development.
Adjusted free cash flow was positive but modest at $2.2 million, compared with negative $0.8 million in the year-ago quarter.
DOCN Raised Its 2026 Outlook as Capacity Plans ExpandedDOCN guided second-quarter revenue to $272 million-$274 million, implying 24%-25% year-over-year growth. The company expects an adjusted EBITDA margin of 37%-38% and non-GAAP earnings between 20 cents per share and 23 cents per share.
For 2026, DigitalOcean raised its revenue outlook to $1.130 billion-$1.145 billion, calling for 25%-27% year-over-year growth, alongside an adjusted EBITDA margin of 37%-39% and an adjusted free cash flow margin of 9%-12%. Non-GAAP earnings are expected to be $1.10-$1.20 per share.
Management also pointed to incremental committed data center capacity of about 60 megawatts, bringing total committed capacity to roughly 135 megawatts, and said it now expects 2027 revenue growth to exceed 50%, with 2027 revenues projected to exceed $1.7 billion.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in fresh estimates.
The consensus estimate has shifted -5.88% due to these changes.
VGM ScoresCurrently, DigitalOcean has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook DigitalOcean has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerDigitalOcean belongs to the Zacks Internet - Software industry. Another stock from the same industry, Spotify (SPOT - Free Report) , has gained 14.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Spotify reported revenues of $5.3 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $4.04 for the same period compares with $1.13 a year ago.
Spotify is expected to post earnings of $3.31 per share for the current quarter, representing a year-over-year change of +789.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Spotify. Also, the stock has a VGM Score of B.
BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean (NYSE: DOCN), the AI-Native Cloud purpose-built for inference and agentic workloads, today announced three additions to its executive leadership team: Kevin Van Gundy as Chief Revenue Officer, Leo Leung as Chief Marketing Officer, and Brady Mickelsen as Chief Legal & Administrative Officer. The appointments come weeks after DigitalOcean unveiled its AI-Native Cloud at Deploy, the company's developer and customer conference, and positioned the.
TORONTO, May 14, 2026 (GLOBE NEWSWIRE) -- Summit Royalties Ltd. (TSXV: SUM, OTC QX: SUMMF ) (the "Corporation" or "Summit") announces that effective today, its common shares have qualified to trade on the OTCQX® Best Market (“OTCQX”) in the United States under the ticker “SUMMF”. The Company's common shares will continue to trade on the TSX-V under the symbol “SUM”.
Vancouver, British Columbia--(Newsfile Corp. - May 19, 2026) - Summit Royalties (TSXV: SUM) holds a growing portfolio of 47 royalty interests tied to gold and silver mines across multiple jurisdictions. With projects in production, development, and expansion, the company provides investors exposure to mining revenue without the operating costs of running mines.
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June 01, 2026 07:00 ET | Source: Summit Royalties Ltd.
TORONTO, June 01, 2026 (GLOBE NEWSWIRE) -- Summit Royalties Ltd. (TSXV: SUM, OTCQB: SUMMF) (the "Corporation" or "Summit") is pleased to announce, further to its news release dated March 12, 2026 and entitled "Summit Royalties Announces Agreement to Acquire Royalty on Newmont's Saddle North Deposit", that it has completed the acquisition (the "Acquisition") of an existing 1.0% net smelter return royalty (the "NSR royalty") on the Saddle North Deposit owned by Newmont Corporation for C$5 million in shares at a deemed price of C$1.765 per share.
The 1.0% NSR royalty held by Summit is subject to a buy-back right in favour of Newmont Corporation, which permits Newmont Corporation to repurchase 50% of Summit's 1.0% NSR royalty for a cash payment of C$750,000 at any time during the five-year period commencing on the date Saddle North is put into commercial production.
About Summit Royalties Ltd.
Summit Royalties Ltd. is a precious metals royalty and streaming company. Its current portfolio is anchored by cash-flowing production with additional royalties on advanced development- and exploration-stage properties. Summit intends to become the fastest growing royalty and streaming company by executing actionable, accretive acquisitions that increase production and drive cash flow growth. The Corporation has no debt and has sufficient cash on hand for future acquisitions. The Corporation's registered office is located at One First Canadian Place, Suite 3400, Toronto, ON, M5X 1A4.
ON BEHALF OF THE BOARD OF DIRECTORS OF SUMMIT ROYALTIES LTD.
Drew Clark
President and Chief Executive Officer
Summit Royalties Ltd.
Certain statements contained in this news release may be deemed "forward‐looking statements" within the meaning of applicable Canadian securities laws. These forward‐looking statements, by their nature, require the Corporation to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐looking statements. Forward‐looking statements are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward‐looking statements. Information contained in forward‐looking statements, including with respect to, any exercise of the buy-back option on the NSR royalty, the Corporation's objectives, anticipated growth and ability to execute acquisitions that increase production and drive cash flow growth, and the Corporation having sufficient cash on hand for future acquisitions, are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, current information available to the management of the Corporation, as well as other considerations that are believed to be appropriate in the circumstances. The Corporation considers its assumptions to be reasonable based on information currently available, but cautions the reader that its assumptions regarding future events, many of which are beyond the control of the Corporation, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Corporation and its businesses.
For additional information with respect to these and other factors and assumptions underlying the forward‐looking statements made in this news release concerning the Corporation, see the section entitled "Risks and Uncertainties" in the most recent management discussion and analysis of Summit which is filed with the Canadian securities commissions and available electronically under the Corporation's issuer profile on SEDAR+ (www.sedarplus.ca). The forward‐looking statements set forth herein concerning the Corporation reflect management's expectations as at the date of this news release and are subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Brixmor Property Group is downgraded to 'Hold' as shares approach a fair value of $29–$31 after a strong run. BRX benefits from durable grocery-anchored open-air centers, strong leasing momentum, and a financially sound, diversified tenant base. 2024 FFO guidance of $2.33–$2.37 aligns with expectations; dividend coverage is robust at ~1.9x, supporting continued dividend growth.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Brixmor Property (BRX - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of 12.01% since the start of the year. Currently paying a dividend of $0.62 per share, the company has a dividend yield of 4.19%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4.12%, while the S&P 500's yield is 1.41%.
Looking at dividend growth, the company's current annualized dividend of $1.23 is up 7% from last year. Over the last 5 years, Brixmor Property has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.56%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Brixmor's current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, BRX expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.35 per share, representing a year-over-year earnings growth rate of 4.44%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BRX is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Massachusetts Financial Services Co. MA reduced its position in shares of Brixmor Property Group Inc. (NYSE:BRX – Free Report) by 4.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 7,691,972 shares of the real estate investment trust’s stock after selling 399,100 shares during the period. Massachusetts Financial Services Co. MA owned 2.51% of Brixmor Property Group worth $201,684,000 at the end of the most recent quarter.
Several other hedge funds also recently modified their holdings of the company. Parallel Advisors LLC boosted its stake in shares of Brixmor Property Group by 17.4% during the 3rd quarter. Parallel Advisors LLC now owns 2,681 shares of the real estate investment trust’s stock worth $74,000 after purchasing an additional 398 shares during the last quarter. Quadrant Capital Group LLC boosted its stake in shares of Brixmor Property Group by 2.5% during the 3rd quarter. Quadrant Capital Group LLC now owns 19,283 shares of the real estate investment trust’s stock worth $534,000 after purchasing an additional 465 shares during the last quarter. Park Avenue Securities LLC boosted its stake in shares of Brixmor Property Group by 1.3% during the 3rd quarter. Park Avenue Securities LLC now owns 36,195 shares of the real estate investment trust’s stock worth $1,002,000 after purchasing an additional 478 shares during the last quarter. GAMMA Investing LLC boosted its stake in shares of Brixmor Property Group by 7.4% during the 3rd quarter. GAMMA Investing LLC now owns 7,003 shares of the real estate investment trust’s stock worth $194,000 after purchasing an additional 485 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Brixmor Property Group by 43.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,835 shares of the real estate investment trust’s stock worth $48,000 after purchasing an additional 557 shares during the last quarter. 98.43% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several research firms recently issued reports on BRX. Weiss Ratings reissued a “buy (b-)” rating on shares of Brixmor Property Group in a research report on Monday, December 22nd. Piper Sandler raised their target price on shares of Brixmor Property Group from $31.00 to $34.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 17th. UBS Group raised their target price on shares of Brixmor Property Group from $29.00 to $31.00 and gave the stock a “buy” rating in a research report on Thursday, January 8th. Scotiabank raised their target price on shares of Brixmor Property Group from $29.00 to $33.00 and gave the stock a “sector outperform” rating in a research report on Tuesday, March 24th. Finally, Wells Fargo & Company raised their target price on shares of Brixmor Property Group from $28.00 to $32.00 and gave the stock an “equal weight” rating in a research report on Thursday, March 19th. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Brixmor Property Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $31.55.
Get Our Latest Research Report on Brixmor Property Group
Brixmor Property Group Trading Down 0.0% Shares of BRX stock opened at $29.70 on Monday. The stock has a market cap of $9.11 billion, a price-to-earnings ratio of 23.57, a price-to-earnings-growth ratio of 2.67 and a beta of 1.06. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 1.83. Brixmor Property Group Inc. has a fifty-two week low of $23.38 and a fifty-two week high of $30.70. The firm’s 50 day moving average price is $29.22 and its two-hundred day moving average price is $27.39.
Brixmor Property Group (NYSE:BRX – Get Free Report) last announced its quarterly earnings results on Monday, February 9th. The real estate investment trust reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.57 by $0.01. The firm had revenue of $353.75 million for the quarter, compared to analysts’ expectations of $347.42 million. Brixmor Property Group had a net margin of 28.16% and a return on equity of 13.00%. Brixmor Property Group’s revenue was up 7.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.53 earnings per share. Brixmor Property Group has set its FY 2026 guidance at 2.330-2.370 EPS. On average, analysts anticipate that Brixmor Property Group Inc. will post 2.22 EPS for the current year.
Brixmor Property Group Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Thursday, April 2nd will be given a dividend of $0.3075 per share. This represents a $1.23 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Thursday, April 2nd. Brixmor Property Group’s payout ratio is 97.62%.
Insiders Place Their Bets In other Brixmor Property Group news, Director Julie Bowerman sold 8,000 shares of Brixmor Property Group stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $29.03, for a total transaction of $232,240.00. Following the transaction, the director directly owned 18,400 shares of the company’s stock, valued at $534,152. The trade was a 30.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.91% of the stock is currently owned by company insiders.
About Brixmor Property Group (Free Report)
Brixmor Property Group is a publicly traded real estate investment trust (REIT) focused on the ownership, management and development of open-air shopping centers across the United States. The company acquires and leases retail properties that feature everyday, necessity-based tenants such as grocery stores, discount retailers, and service providers. Brixmor’s core strategy centers on generating stable, long-term income streams through tenant relationships and targeted property enhancements.
The company’s main business activities include proactive leasing, property upkeep and capital improvement projects designed to maximize occupancy and tenant satisfaction.
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, /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company") announced today its operating results for the three months ended March 31, 2026. For the three months ended March 31, 2026 and 2025, net income attributable to Brixmor Property Group Inc. was $0.41 per diluted share and $0.23 per diluted share, respectively.
Key highlights for the three months ended March 31, 2026 include:
Executed 1.3 million square feet of new and renewal leases, with rent spreads on comparable space of 27.0%, including new lease rent spreads on comparable space of 41.8% and record renewal lease rent spreads on comparable space of 21.3% Realized total leased occupancy of 95.1%, anchor leased occupancy of 96.5%, and small shop leased occupancy of 92.1% Commenced $12.0 million of annualized base rent Leased to billed occupancy spread totaled 370 basis points Total signed but not yet commenced new lease population represented 2.8 million square feet and $66.7 million of annualized base rent Reported an increase in same property NOI of 6.4%, including a contribution from base rent of 410 basis points Reported Nareit FFO of $179.6 million, or $0.58 per diluted share Stabilized $77.8 million of reinvestment projects at an average incremental NOI yield of 9%, with the in process reinvestment pipeline totaling $302.4 million at an expected average incremental NOI yield of 10% Completed $107.9 million of dispositions Executed forward sale contracts to issue 3.9 million shares under the Company's at-the-market ("ATM") equity offering program at a weighted-average offering price of $29.85 per share and anticipated proceeds of $116.0 million, before commissions and fees Subsequent events:
Completed $11.3 million of dispositions Updated previously provided Nareit FFO per diluted share expectations for 2026 to $2.34 - $2.37 from $2.33 - $2.37 and same property NOI growth expectations for 2026 to 4.75% - 5.50% from 4.50% - 5.50% "The Brixmor team is off to a strong start to 2026 as demonstrated by sustained leasing demand, record renewal spreads, and continued execution of our accretive reinvestment plan during the first quarter," commented Brian T. Finnegan, Chief Executive Officer and President. "Our increased 2026 outlook reflects the strength of our platform, the durability of our underlying cash flows, and the unparalleled visibility on growth in what continues to be a positive environment for grocery-anchored open-air shopping centers."
FINANCIAL HIGHLIGHTS
The following table summarizes the Company's net income attributable to Brixmor Property Group Inc. and Nareit FFO: (Unaudited, dollars in millions, except per share amounts)
Three Months Ended
3/31/2026
3/31/2025
Net income attributable to Brixmor Property Group Inc.
$127.8
$69.7
Net income attributable to Brixmor Property Group Inc. per diluted
share
$0.41
$0.23
Nareit FFO
$179.6
$171.1
Nareit FFO per diluted share
$0.58
$0.56
Same Property NOI Performance
For the three months ended March 31, 2026, the Company reported an increase in same property NOI of 6.4% versus the comparable 2025 period. Dividend
The Company's Board of Directors declared a quarterly cash dividend of $0.3075 per common share (equivalent to $1.23 per annum). The dividend is payable on July 15, 2026 to stockholders of record on July 2, 2026. PORTFOLIO AND INVESTMENT ACTIVITY
Value Enhancing Reinvestment Opportunities
During the three months ended March 31, 2026, the Company stabilized four value enhancing reinvestment projects with a total aggregate net cost of approximately $77.8 million at an average incremental NOI yield of 9% and added ten new reinvestment projects to its in process pipeline with a total aggregate net estimated cost of approximately $43.7 million at an expected average incremental NOI yield of 10%. The following table summarizes the Company's in process reinvestment pipeline as of March 31, 2026: (Dollars in millions)
Number of Projects
Net Estimated Costs
Expected NOI Yield
Anchor space repositioning
15
$77.0
7% - 14%
Outparcel development
12
21.5
12 %
Redevelopment
12
203.9
11 %
Total
39
$302.4
10 %
An in-depth review of a redevelopment project which highlights the Company's reinvestment capabilities, The Davis Collection (Sacramento-Roseville-Folsom, CA CBSA), can be found at this link: https://www.brixmor.com/blog/davis-community-retailers-city. Follow Brixmor on LinkedIn for video updates on reinvestment projects at https://www.linkedin.com/company/brixmor. Acquisitions
During the three months ended March 31, 2026, the Company did not complete any acquisitions. Dispositions
During the three months ended March 31, 2026, the Company generated $107.9 million of gross proceeds on the disposition of four shopping centers. Subsequent to March 31, 2026, the Company generated approximately $11.3 million of gross proceeds on the disposition of one shopping center. CAPITAL STRUCTURE
During the three months ended March 31, 2026, the Company executed forward sale contracts under its ATM equity offering program through which it is expected to issue 3.9 million shares of common stock at a weighted-average offering price per share of $29.85, before commissions and fees. Anticipated proceeds from the forward sale contracts are approximately $116.0 million, before commissions and fees, and are expected to be used for general corporate purposes. At March 31, 2026, the Company had $1.8 billion in liquidity. At March 31, 2026, the Company's net principal debt to adjusted EBITDA, current quarter annualized was 5.3x and net principal debt to adjusted EBITDA, trailing twelve months was 5.4x. GUIDANCE
The Company has updated its previously provided Nareit FFO per diluted share expectations for 2026 to $2.34 - $2.37 from $2.33 - $2.37 and its same property NOI growth expectations for 2026 to 4.75% - 5.50% from 4.50% - 5.50%. Revenues deemed uncollectible is expected to total 75 - 100 basis points of total expected revenues in 2026. 2026 expectations do not include any additional items that impact FFO comparability, which include gain or loss on extinguishment of debt, net and transaction expenses, net, or any other one-time items. The following table provides a reconciliation of the range of the Company's 2026 estimated net income attributable to Brixmor Property Group Inc. to Nareit FFO: (Unaudited, dollars in millions, except per share amounts)
2026E
2026E Per
Diluted Share
Net income attributable to Brixmor Property Group Inc.
$355 - $365
$1.16 - $1.19
Depreciation and amortization related to real estate
417
1.35
Gain on sale of real estate assets
(52)
(0.17)
Nareit FFO
$720 - $730
$2.34 - $2.37
CONNECT WITH BRIXMOR
For additional information, please visit https://www.brixmor.com; Follow Brixmor on: LinkedIn at https://www.linkedin.com/company/brixmor Facebook at https://www.facebook.com/Brixmor Instagram at https://www.instagram.com/brixmorpropertygroup; and YouTube at https://www.youtube.com/user/Brixmor. CONFERENCE CALL AND SUPPLEMENTAL INFORMATION
The Company will host a teleconference on Tuesday, April 28, 2026 at 10:00 AM ET. To participate, please dial 877.704.4453 (domestic) or 201.389.0920 (international) within 15 minutes of the scheduled start of the call. The teleconference can also be accessed via a live webcast at https://www.brixmor.com in the Investors section. A replay of the teleconference will be available through May 12, 2026 by dialing 844.512.2921 (domestic) or 412.317.6671 (international) (Passcode: 13758788) or via the web through April 28, 2027 at https://www.brixmor.com in the Investors section.
The Company's Supplemental Disclosure will be posted at https://www.brixmor.com in the Investors section. These materials are also available to all interested parties upon request to the Company at [email protected] or 800.468.7526.
NON-GAAP PERFORMANCE MEASURES
The Company presents the non-GAAP performance measures set forth below. These measures should not be considered as alternatives to, or more meaningful than, net income (calculated in accordance with GAAP) or other GAAP financial measures, as an indicator of financial performance and are not alternatives to, or more meaningful than, cash flow from operating activities (calculated in accordance with GAAP) as a measure of liquidity. Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental financial results to those calculated in accordance with GAAP. The Company's computation of these non-GAAP performance measures may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from these non-GAAP performance measures are relevant to understanding and addressing financial performance. A reconciliation of net income to these non-GAAP performance measures is presented in the attached tables.
Nareit FFO
Nareit FFO is a supplemental, non-GAAP performance measure utilized to evaluate the operating and financial performance of real estate companies. Nareit defines FFO as net income (calculated in accordance with GAAP) excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from the sale of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated joint ventures calculated to reflect FFO on the same basis. Considering the nature of its business as a real estate owner and operator, the Company believes that Nareit FFO is useful to investors in measuring its operating and financial performance because the definition excludes items included in net income (calculated in accordance with GAAP) that do not relate to or are not indicative of the Company's operating and financial performance, such as depreciation and amortization related to real estate, and items which can make periodic and peer analyses of operating and financial performance more difficult, such as gains and losses from the sale of certain real estate assets and impairment write-downs of certain real estate assets.
Same Property NOI
Same property NOI is a supplemental, non-GAAP performance measure utilized to evaluate the operating performance of real estate companies. Same property NOI is calculated (using properties owned for the entirety of both periods and excluding properties under development and completed new development properties that have been stabilized for less than one year) as total property revenues (base rent, expense reimbursements, adjustments for revenues deemed uncollectible, ancillary and other rental income, percentage rents, and other revenues) less direct property operating expenses (operating costs and real estate taxes). Same property NOI excludes (i) lease termination fees, (ii) straight-line rental income, net, (iii) accretion of below-market leases, net of amortization of above-market leases and tenant inducements, (iv) straight-line ground rent expense, net, (v) income or expense associated with the Company's captive insurance company, (vi) depreciation and amortization, (vii) impairment of real estate assets, (viii) general and administrative expense, and (ix) other income and expense (including interest expense and gain on sale of real estate assets). Considering the nature of its business as a real estate owner and operator, the Company believes that NOI is useful to investors in measuring the operating performance of its portfolio because the definition excludes various items included in net income that do not relate to, or are not indicative of, the operating performance of the Company's properties, such as lease termination fees, straight-line rental income, net, income or expense associated with the Company's captive insurance company, accretion of below-market leases, net of amortization of above-market leases and tenant inducements, straight-line ground rent expense, net, depreciation and amortization, impairment of real estate assets, general and administrative expense, and other income and expense (including interest expense and gain on sale of real estate assets). The Company believes that same property NOI is also useful to investors because it further eliminates disparities in NOI by only including NOI of properties owned for the entirety of both periods presented and excluding properties under development and completed new development properties that have been stabilized for less than one year and therefore provides a more consistent metric for comparing the operating performance of the Company's real estate between periods.
Net Principal Debt to Adjusted EBITDA, current quarter annualized & Net Principal Debt to Adjusted EBITDA, trailing twelve months
Net principal debt to adjusted EBITDA, current quarter annualized and net principal debt to adjusted EBITDA, trailing twelve months are supplemental non-GAAP measures utilized to evaluate the performance of real estate companies in relation to outstanding debt. Net principal debt is calculated as Debt obligations, net (calculated in accordance with GAAP) excluding net unamortized premium or discount and deferred financing fees less cash, cash equivalents, and restricted cash. Adjusted EBITDA is calculated as the sum of net income (calculated in accordance with GAAP) before non-controlling interests excluding (i) interest expense, (ii) federal and state taxes, (iii) depreciation and amortization, (iv) gains and losses from the sale of certain real estate assets, (v) gains and losses from change in control, (vi) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, (vii) gain (loss) on extinguishment of debt, net, and (viii) other items that the Company believes are not indicative of the Company's operating performance. Net principal debt to adjusted EBITDA, current quarter annualized and net principal debt to adjusted EBITDA, trailing twelve months are calculated as net principal debt divided by quarterly annualized adjusted EBITDA or trailing twelve month adjusted EBITDA, respectively. Considering the nature of its business as a real estate owner and operator, the Company believes that net principal debt to adjusted EBITDA, current quarter annualized and net principal debt to adjusted EBITDA, trailing twelve months are useful to investors in measuring its operating performance because they exclude items included in net income (calculated in accordance with GAAP) that do not relate to or are not indicative of the operating performance of the Company's real estate, are widely known and understood measures of performance, independent of a company's capital structure and items which can make periodic and peer analyses of performance more difficult, and can provide investors with a more consistent basis by which to compare the Company with its peers.
ABOUT BRIXMOR PROPERTY GROUP
Brixmor (NYSE: BRX) owns and operates a high-quality, national portfolio of open-air shopping centers. The Company's 344 retail centers comprise approximately 62 million square feet of prime retail space in established trade areas. Brixmor's properties reflect its vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a valued partner to a broad range of retailers, including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.
Brixmor announces material information to its investors in SEC filings and press releases and on public conference calls, webcasts and the "Investors" page of its website at https://www.brixmor.com. The Company also uses social media to communicate with its investors and the public, and the information Brixmor posts on social media may be deemed material information. Therefore, Brixmor encourages investors and others interested in the Company to review the information that it posts on its website and on its social media channels.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under the sections entitled "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at https://www.sec.gov. These factors include (1) changes in national, regional, and local economies, due to global events such as international geopolitical conflicts, international trade disputes, a foreign debt crisis, foreign currency volatility, or due to domestic issues, such as government policies and regulations, tariffs, energy prices, market dynamics, general economic contractions, ongoing levels of inflation and interest rates, unemployment, or limited growth in consumer income or spending; (2) local real estate market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in our Portfolio (defined hereafter); (3) competition from other available properties and e-commerce; (4) disruption and/or consolidation in the retail sector, the financial stability of our tenants, and the overall financial condition of large retailing companies, including their ability to pay rent and/or expense reimbursements that are due to us; (5) in the case of percentage rents, the sales volumes of our tenants; (6) increases in property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, which are relatively inflexible and generally do not decrease if revenue or occupancy decrease; (7) increases in the costs to repair, renovate, and re-lease space; (8) earthquakes, wildfires, tornadoes, hurricanes, damage from rising sea levels due to climate change, other natural disasters, epidemics and/or pandemics, civil unrest, terrorist acts, or acts of war, any of which may result in uninsured or underinsured losses; (9) changes in laws and governmental regulations, including those governing usage, zoning, the environment, privacy, data security, intellectual property rights, and taxes; and (10) cybersecurity incidents or other disruptions to information technology systems used by us, our tenants, or our vendors, which could compromise data or impair business operations. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except to the extent otherwise required by law.
CONSOLIDATED BALANCE SHEETS
Unaudited, dollars in thousands, except share information
As of
As of
3/31/2026
12/31/2025
Assets
Real estate
Land
$ 1,837,739
$ 1,849,779
Buildings and tenant improvements
9,313,530
9,296,849
Construction in progress
55,108
92,129
Lease intangibles
538,888
548,740
11,745,265
11,787,497
Accumulated depreciation and amortization
(3,636,118)
(3,588,646)
Real estate, net
8,109,147
8,198,851
Cash and cash equivalents
323,934
334,422
Restricted cash
100,633
27,108
Marketable securities
20,480
21,283
Receivables, net, including straight-line rent receivables of $244,075 and $237,837, respectively
302,774
315,128
Deferred charges and prepaid expenses, net
170,538
169,326
Real estate assets held for sale
5,290
4,551
Other assets
70,595
62,468
Total assets
$ 9,103,391
$ 9,133,137
Liabilities
Debt obligations, net
$ 5,496,071
$ 5,494,753
Accounts payable, accrued expenses and other liabilities
570,407
628,328
Total liabilities
6,066,478
6,123,081
Equity
Common stock, $0.01 par value; authorized 3,000,000,000 shares;
315,963,609 and 315,231,761 shares issued and 306,836,617 and 306,104,769
shares outstanding
3,068
3,061
Additional paid-in capital
3,424,070
3,437,853
Accumulated other comprehensive income
9,409
1,722
Distributions in excess of net income
(399,883)
(432,822)
Total stockholders' equity
3,036,664
3,009,814
Non-controlling interests
249
242
Total equity
3,036,913
3,010,056
Total liabilities and equity
$ 9,103,391
$ 9,133,137
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited, dollars in thousands, except per share amounts
Three Months Ended
3/31/2026
3/31/2025
Revenues
Rental income
$ 354,337
$ 337,241
Other revenues
482
271
Total revenues
354,819
337,512
Operating expenses
Operating costs
41,914
39,211
Real estate taxes
45,403
44,893
Depreciation and amortization
105,202
105,597
General and administrative
28,192
28,173
Total operating expenses
220,711
217,874
Other income (expense)
Dividends and interest
3,205
1,706
Interest expense
(59,392)
(54,084)
Gain on sale of real estate assets
52,097
3,070
Other
(2,261)
(593)
Total other expense
(6,351)
(49,901)
Net income
127,757
69,737
Net income attributable to non-controlling interests
(7)
(8)
Net income attributable to Brixmor Property Group Inc.
$ 127,750
$ 69,729
Net income attributable to Brixmor Property Group Inc. per common share:
Basic
$ 0.42
$ 0.23
Diluted
$ 0.41
$ 0.23
Weighted average shares:
Basic
307,024
306,766
Diluted
307,679
307,252
FUNDS FROM OPERATIONS (FFO)
Unaudited, dollars in thousands, except per share amounts
Three Months Ended
3/31/2026
3/31/2025
Net income attributable to Brixmor Property Group Inc.
$ 127,750
$ 69,729
Depreciation and amortization related to real estate
103,919
104,448
Gain on sale of real estate assets
(52,097)
(3,070)
Nareit FFO
$ 179,572
$ 171,107
Nareit FFO per diluted share
$ 0.58
$ 0.56
Weighted average diluted shares outstanding
307,679
307,252
Items that impact FFO comparability
Transaction expenses, net
$ (49)
$ (21)
Total items that impact FFO comparability
$ (49)
$ (21)
Items that impact FFO comparability, net per share
$ (0.00)
$ (0.00)
Additional Disclosures
Straight-line rental income, net
$ 7,939
$ 7,481
Accretion of below-market leases, net of amortization of above-market leases and tenant inducements
4,109
2,515
Straight-line ground rent expense, net (1)
(160)
(134)
Dividends declared per share
$ 0.3075
$ 0.2875
Dividends declared
$ 94,352
$ 87,991
Dividend payout ratio (as % of Nareit FFO)
52.5 %
51.4 %
(1) Straight-line ground rent expense, net is included in Operating costs on the Consolidated Statements of Operations.
SAME PROPERTY NOI ANALYSIS
Unaudited, dollars in thousands
Three Months Ended
3/31/2026
3/31/2025
Change
Same Property NOI Analysis
Number of properties
338
338
-
Percent billed
91.3 %
90.0 %
1.3 %
Percent leased
95.0 %
94.3 %
0.7 %
Revenues
Base rent
$ 237,855
$ 228,427
Expense reimbursements
79,138
75,837
Revenues deemed uncollectible
(1,572)
(2,372)
Ancillary and other rental income / Other revenues
8,335
5,592
Percentage rents
4,980
3,943
328,736
311,427
5.6 %
Operating expenses
Operating costs
(39,614)
(37,490)
Real estate taxes
(43,648)
(43,325)
(83,262)
(80,815)
3.0 %
Same property NOI
$ 245,474
$ 230,612
6.4 %
NOI margin
74.7 %
74.1 %
Expense recovery ratio
95.0 %
93.8 %
Percent Contribution to Same Property NOI Performance:
Change
Percent Contribution
Base Rent
$ 9,428
4.1 %
Revenues deemed uncollectible
800
0.3 %
Net expense reimbursements
854
0.4 %
Ancillary and other rental income / Other revenues
2,743
1.2 %
Percentage rents
1,037
0.4 %
6.4 %
Reconciliation of Net income attributable to Brixmor Property Group Inc. to Same Property NOI
Net income attributable to Brixmor Property Group Inc.
$ 127,750
$ 69,729
Adjustments:
Non-same property NOI
(8,510)
(8,823)
Lease termination fees
(1,630)
(4,111)
Straight-line rental income, net
(7,939)
(7,481)
Accretion of below-market leases, net of amortization of above-market leases and tenant inducements
(4,109)
(2,515)
Straight-line ground rent expense, net
160
134
Depreciation and amortization
105,202
105,597
General and administrative
28,192
28,173
Total other expense
6,351
49,901
Net income attributable to non-controlling interests
7
8
Same Property NOI
$ 245,474
$ 230,612
EBITDA & RECONCILIATION OF DEBT OBLIGATIONS, NET TO NET PRINCIPAL DEBT
Unaudited, dollars in thousands
Three Months Ended
3/31/2026
3/31/2025
Net income
$ 127,757
$ 69,737
Interest expense
59,392
54,084
Federal and state taxes
939
707
Depreciation and amortization
105,202
105,597
EBITDA
293,290
230,125
Gain on sale of real estate assets
(52,097)
(3,070)
EBITDAre
$ 241,193
$ 227,055
EBITDAre
$ 241,193
$ 227,055
Transaction expenses, net
49
21
Adjusted EBITDA
$ 241,242
$ 227,076
Adjusted EBITDA
$ 241,242
$ 227,076
Straight-line rental income, net
(7,939)
(7,481)
Accretion of below-market leases, net of amortization of above-market leases and tenant inducements
(4,109)
(2,515)
Straight-line ground rent expense, net (1)
160
134
Total adjustments
(11,888)
(9,862)
Cash Adjusted EBITDA
$ 229,354
$ 217,214
(1) Straight-line ground rent expense, net is included in Operating costs on the Consolidated Statements of Operations.
Reconciliation of Debt Obligations, Net to Net Principal Debt
As of
3/31/2026
Debt obligations, net
$ 5,496,071
Less: Net unamortized premium
(9,613)
Add: Deferred financing fees
31,995
Less: Cash, cash equivalents and restricted cash
(424,567)
Net Principal Debt
$ 5,093,886
Adjusted EBITDA, current quarter annualized
$ 964,968
Net Principal Debt to Adjusted EBITDA, current quarter annualized
5.3x
Adjusted EBITDA, trailing twelve months
$ 940,281
Net Principal Debt to Adjusted EBITDA, trailing twelve months
Brixmor Property (BRX - Free Report) came out with quarterly funds from operations (FFO) of $0.58 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to FFO of $0.56 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +1.17%. A quarter ago, it was expected that this owner and operator of shopping centers would post FFO of $0.57 per share when it actually produced FFO of $0.58, delivering a surprise of +1.75%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Brixmor, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $354.82 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.91%. This compares to year-ago revenues of $337.51 million. 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 FFO expectations will mostly depend on management's commentary on the earnings call.
Brixmor shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 4.7%.
What's Next for Brixmor?While Brixmor has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO 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 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 estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Brixmor was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.59 on $351.54 million in revenues for the coming quarter and $2.35 on $1.41 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, REIT and Equity Trust - Retail is currently in the top 26% 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.
American Assets Trust (AAT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 28.
This real estate investment trust is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -1.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
American Assets Trust's revenues are expected to be $108.86 million, up 0.2% from the year-ago quarter.
Brixmor Property (BRX - Free Report) reported $354.82 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 5.1%. EPS of $0.58 for the same period compares to $0.23 a year ago.
The reported revenue represents a surprise of +1.91% over the Zacks Consensus Estimate of $348.18 million. With the consensus EPS estimate being $0.57, the EPS surprise was +1.17%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Brixmor performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Other revenues: $0.48 million versus $0.43 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +77.9% change.Revenues- Rental income: $354.34 million versus the four-analyst average estimate of $346.36 million. The reported number represents a year-over-year change of +5.1%.Income (loss) attributable to common stockholders- Diluted: $0.41 versus $0.26 estimated by three analysts on average.View all Key Company Metrics for Brixmor here>>>
Shares of Brixmor have returned +6.9% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Brixmor Property Group offers compelling value and income, outperforming the S&P 500 with a 17% total return since January. BRX's grocery-anchored, necessity-based retail centers drive resilient NOI growth, with Q1'26 same-property NOI up 6.4% and leasing spreads at record highs. Structural tailwinds, limited new retail supply, and strong tenant demand underpin BRX's forward NOI growth guidance of 4.75%-5.5%.
, /PRNewswire/ -- Brixmor Property Group Inc. (NYSE: BRX) ("Brixmor" or the "Company") announced today that its operating partnership, Brixmor Operating Partnership LP (the "Operating Partnership"), priced an offering of $400 million aggregate principal amount of 5.375% Senior Notes due 2036 (the "Notes"). The Notes will be issued at 99.628% of par value with a coupon of 5.375%. Interest on the Notes is payable semi-annually on June 15 and December 15 of each year, beginning December 15, 2026. The Notes will mature on June 15, 2036. The offering is expected to close on May 5, 2026, subject to the satisfaction of customary closing conditions.
The Operating Partnership intends to use the net proceeds from this offering for general corporate purposes, which may include repayment of outstanding indebtedness, including some or all of the outstanding 4.125% Senior Notes due 2026. J.P. Morgan Securities LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering.
The Operating Partnership has filed an effective registration statement (including a prospectus supplement and accompanying base prospectus) with the Securities and Exchange Commission (the "SEC") relating to the offering to which this communication relates. Before making an investment in the Notes, potential investors should read the prospectus supplement, the accompanying prospectus and the other documents that the Company and the Operating Partnership have filed with the SEC for more complete information about us and the offering. Potential investors may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from: J.P. Morgan Securities LLC by calling 1-212-834-4533, PNC Capital Markets LLC by calling 1-855-881-0697, Scotia Capital (USA) Inc. by calling 1-800-372-3930 and TD Securities (USA) LLC by calling 1-855-495-9846.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Notes in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer or sale of the Notes will be made only by means of a prospectus supplement relating to the offering of the Notes and the accompanying prospectus.
ABOUT BRIXMOR PROPERTY GROUP
Brixmor (NYSE: BRX) owns and operates a high-quality, national portfolio of open-air shopping centers. The Company's 344 retail centers comprise approximately 62 million square feet of prime retail space in established trade areas. Brixmor's properties reflect its vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a valued partner to a broad range of retailers, including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.
Brixmor announces material information to its investors in SEC filings and press releases and on public conference calls, webcasts and the "Investors" page of its website at https://www.brixmor.com. The Company also uses social media to communicate with its investors and the public, and the information Brixmor posts on social media may be deemed material information. Therefore, Brixmor encourages investors and others interested in the Company to review the information that it posts on its website and on its social media channels.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under the sections entitled "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at https://www.sec.gov. These factors include (1) changes in national, regional, and local economies, due to global events such as international geopolitical conflicts, international trade disputes, a foreign debt crisis, foreign currency volatility, or due to domestic issues, such as government policies and regulations, tariffs, energy prices, market dynamics, general economic contractions, ongoing levels of inflation and interest rates, unemployment, or limited growth in consumer income or spending; (2) local real estate market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in our portfolio; (3) competition from other available properties and e-commerce; (4) disruption and/or consolidation in the retail sector, the financial stability of our tenants, and the overall financial condition of large retailing companies, including their ability to pay rent and/or expense reimbursements that are due to us; (5) in the case of percentage rents, the sales volumes of our tenants; (6) increases in property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, which are relatively inflexible and generally do not decrease if revenue or occupancy decrease; (7) increases in the costs to repair, renovate, and re-lease space; (8) earthquakes, wildfires, tornadoes, hurricanes, damage from rising sea levels due to climate change, other natural disasters, epidemics and/or pandemics, civil unrest, terrorist acts, or acts of war, any of which may result in uninsured or underinsured losses; (9) changes in laws and governmental regulations, including those governing usage, zoning, the environment, privacy, data security, intellectual property rights, and taxes; and (10) cybersecurity incidents or other disruptions to information technology systems used by us, our tenants, or our vendors, which could compromise data or impair business operations. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except to the extent otherwise required by law.
