Shares of CBIZ, Inc. (NYSE:CBZ – Get Free Report) have earned an average recommendation of “Hold” from the seven research firms that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $41.3333.
CBZ has been the subject of a number of recent analyst reports. Zacks Research upgraded shares of CBIZ from a “strong sell” rating to a “hold” rating in a research report on Friday, March 27th. Weiss Ratings reiterated a “sell (d+)” rating on shares of CBIZ in a research report on Wednesday, January 21st. BMO Capital Markets started coverage on shares of CBIZ in a research report on Monday, March 30th. They set an “outperform” rating and a $33.00 price target for the company. Stephens started coverage on shares of CBIZ in a research report on Friday, April 10th. They set an “equal weight” rating and a $31.00 price target for the company. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of CBIZ in a research report on Monday, January 12th. They set a “hold” rating and a $60.00 price target for the company.
View Our Latest Research Report on CBZ
Insider Activity In related news, CFO Brad S. Lakhia purchased 12,775 shares of CBIZ stock in a transaction dated Friday, March 13th. The stock was bought at an average cost of $25.97 per share, for a total transaction of $331,766.75. Following the transaction, the chief financial officer owned 148,480 shares in the company, valued at approximately $3,856,025.60. The trade was a 9.41% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 4.10% of the company’s stock.
Institutional Investors Weigh In On CBIZ A number of hedge funds and other institutional investors have recently modified their holdings of CBZ. AQR Capital Management LLC lifted its position in shares of CBIZ by 6.2% during the 1st quarter. AQR Capital Management LLC now owns 11,725 shares of the business services provider’s stock valued at $889,000 after acquiring an additional 682 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of CBIZ by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,294 shares of the business services provider’s stock valued at $2,222,000 after acquiring an additional 1,318 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of CBIZ by 5.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 143,270 shares of the business services provider’s stock valued at $10,868,000 after acquiring an additional 7,676 shares during the period. Jane Street Group LLC lifted its position in shares of CBIZ by 96.1% during the 1st quarter. Jane Street Group LLC now owns 41,240 shares of the business services provider’s stock valued at $3,128,000 after acquiring an additional 20,214 shares during the period. Finally, Prudential Financial Inc. lifted its position in shares of CBIZ by 80.4% during the 2nd quarter. Prudential Financial Inc. now owns 6,637 shares of the business services provider’s stock valued at $492,000 after acquiring an additional 2,957 shares during the period. 87.44% of the stock is currently owned by institutional investors and hedge funds.
CBIZ Price Performance Shares of NYSE:CBZ opened at $29.68 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.79. The company has a market cap of $1.63 billion, a P/E ratio of 16.77, a PEG ratio of 0.57 and a beta of 0.93. CBIZ has a 52 week low of $24.29 and a 52 week high of $77.91. The company has a 50-day moving average price of $28.00 and a 200 day moving average price of $42.14.
CBIZ (NYSE:CBZ – Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The business services provider reported ($0.70) EPS for the quarter, missing analysts’ consensus estimates of ($0.66) by ($0.04). The firm had revenue of $542.66 million during the quarter, compared to analyst estimates of $578.02 million. CBIZ had a net margin of 4.19% and a return on equity of 12.23%. CBIZ’s revenue for the quarter was up 17.9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.20) EPS. CBIZ has set its FY 2026 guidance at 3.750-3.850 EPS. Research analysts predict that CBIZ will post 3.78 earnings per share for the current year.
About CBIZ (Get Free Report)
CBIZ, Inc (NYSE: CBZ), founded in 1996 and headquartered in Cleveland, Ohio, is a leading provider of professional business services in the United States. Since its inception, the company has grown through both organic expansion and strategic acquisitions to deliver a broad spectrum of financial, tax and advisory solutions tailored to the needs of small to mid-market organizations.
Through its Financial & Advisory Services segment, CBIZ offers accounting, tax preparation and compliance, audit support, and wealth management services.
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YoY Growth in Revenue, Earnings, and Cash Flow
Increased Adjusted Diluted EPS Outlook for Completed Share Repurchases
Executing on Capital Allocation Priorities
First-Quarter Financial Highlights:
Total revenue of $849M, up 1.3%; Financial Services revenue up 2.1%Net income of $162M, up 31.6%; GAAP EPS of $2.63, up 37.7%Adjusted EBITDA of $244M, up 1.5%; Adjusted diluted EPS of $2.50, up 7.3%Operating cash flow up 71.1%; Free cash flow up 69.5%Repurchased ~2M shares for ~$63M through end of April; net leverage decreased 0.5x YoY2026 outlook continues to contemplate low to mid-single digit revenue growth, improved earnings and strong free cash flow conversion over prior year CLEVELAND, April 29, 2026 (GLOBE NEWSWIRE) -- CBIZ, Inc., (NYSE: CBZ) (“CBIZ” or the “Company”), a leading national professional services advisor, today announced first quarter results for the period ended March 31, 2026.
Management Commentary:
Jerry Grisko, CBIZ President and Chief Executive Officer, said, “We entered 2026 with clear strategic priorities and executed with discipline in the first quarter. We achieved year-over-year growth in revenue, earnings, and free cash flow, while returning capital to shareholders through highly accretive share repurchases. Our organic growth improved throughout the quarter and is up sequentially compared to the fourth quarter. Reflecting our solid performance and the impact of the share repurchases, we are increasing our adjusted EPS outlook and reaffirming our other previously communicated targets.”
Grisko continued, “As we look ahead, we are encouraged by the momentum building across the business and the strong performance of our teams during our first busy season as a fully integrated organization. We remain focused on investing in our people, strengthening our brand, deepening our industry specialization, and enhancing the breadth and depth of services provided to our clients. We believe our strategy and continued execution position CBIZ to drive attractive growth and deliver long-term value for our clients and shareholders.”
Business Highlights:
Named a Top Workplace in the nation by USA Today for the sixth consecutive yearElevated Peter Scavuzzo, one of the leading voices on technology and AI in our industries, to Chief Information and Technology Officer to bring Enterprise IT, Business Transformation and Innovation all under one strategic leaderCBIZ team members continue to be recognized by the market as among the most highly regarded leaders in a number of industry groups, including Construction, Real Estate, Consumer and Industrial Products, Tech and Life Science and Private EquityAttracted new senior professional hires with strong retention levels across the businessDriving cross-serve and new logo wins through industry groups, increasing share of wallet and pipeline conversion across key verticals, such as Private Equity, Construction and Alternative InvestmentsExpanding breadth and depth of services through integrated delivery, collaborating across practices and geographies to support large, multi-service engagements, including cross-border tax, transaction advisory and technology-led workAchieved meaningful progress in deploying an agentic AI platform to drive productivity, consistency, and quality across operationsAccelerating our access to global capabilities to expand capacity and improve efficiency; on track to achieve 2026 target of 10% of total tax and attest hours completed by global resourcesAdvanced integration milestones during the quarter and on track to realize $12M in additional operational synergies in 2026 - continue to expect greater than $50M cumulativelyLaunched spring national brand campaign, featuring targeted, nationally televised ads across key markets to raise brand awareness
2026 Financial Outlook:
MetricPrevious 2026 OutlookUpdated 2026 OutlookTotal Revenue~$2.8B to $2.9B~$2.8B to $2.9BAdjusted EBITDA~$450M to $460M~$465M to $475MAdjusted Diluted EPS~$3.75 to $3.85~$4.00 to $4.10Free Cash Flow~$270M to $290M~$270M to $290M 2026 Financial Outlook Additional Support:
Revenue outlook represents approximately 2% to 5% growthIncreased Adjusted EBITDA and Adjusted Diluted EPS outlook ranges to reflect a stock-based compensation adjustment and share repurchases through end of AprilEffective tax rate of approximately 28.5%Weighted average fully diluted share count of approximately 60.5 million shares, down from approximately 62 million shares in previous outlookFree Cash Flow represents approximately 60% conversion of Adjusted EBITDA Conference Call
CBIZ will host a conference call today at 5 p.m. (ET) to discuss its first quarter results. The call will be webcast, and an archived replay will be available at https://cbiz.gcs-web.com/investor-overview. Participants can register for the conference call at https://dpregister.com/sreg/10208405/103d3539954.
About CBIZ
CBIZ, Inc. (NYSE: CBZ) is a leading professional services advisor to middle market businesses nationwide. With industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers actionable insights to help clients anticipate what is next and discover new ways to accelerate growth. CBIZ has more than 9,500 team members across 23 major markets coast to coast. For more information, visit www.cbiz.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact included in this release, including, without limitation, our “2026 Financial Outlook,” our financial position, business strategy, plans and objectives for future performance, are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are commonly identified by the use of such terms and phrases as “will,” “could,” “can,” “may,” “strive,” “hope,” “intend,” “believe,” “estimate,” “continue,” “plan,” “expect,” “project,” “anticipate,” “outlook,” “foreseeable future,” “seek” and words or phrases of similar import in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated services, sales efforts, expenses, and financial results.
From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. Any or all of our forward-looking statements in this release and in any other public statements that we make are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to: payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible; our business could be adversely affected if the non-attest business assets we acquired, or the attest assets CBIZ CPAs acquired, from Marcum LLP (“Marcum”) do not perform to our expectations or we underestimate the liabilities we have assumed; we are dependent on the services of our executive officers, and other key employees, the loss of any of whom may have a material adverse effect on our business, financial condition and results of operations; our profitability could suffer if we are not able to effectively utilize our employees, maintain operational efficiencies or manage our cost structure; restrictions imposed by independence requirements and conflict of interest rules, as well as the nature and terms of our current administrative service agreements, limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients; our goodwill and other intangible assets could become impaired, which could lead to material non-cash charges against earnings and a material impact on our results of operations and financial condition; certain liabilities resulting from acquisitions are estimated and could lead to a material impact on our results of operations; we may fail to realize the anticipated benefits of acquisitions, or they may prove disruptive and could result in the combined business failing to meet our expectations; claims or adverse publicity could harm our brand, reputation and ability to compete and attract and retain clients, talent and future acquisition targets; we may not be able to acquire and finance additional businesses, which could limit our ability to pursue our business strategy; we will incur transaction, integration, and restructuring costs in connection with our acquisition program; governmental regulations and interpretations are subject to changes, which could have a material adverse effect on our financial condition; uncertainty in the current economic and geopolitical environment could lead to declines in demand for certain of our services; changes in the United States healthcare environment, including new healthcare legislation, may adversely affect the revenue and margins in our healthcare benefit business; we are subject to risks relating to processing customer transactions for our payroll and other transaction processing businesses; cyberattacks or other security breaches involving our computer systems or the systems of one or more of our vendors could materially and adversely affect our business; we are subject to risk as it relates to software that we license from third parties; we are reliant on information processing systems and any failure or disruptions of these systems could have a material adverse effect on our business, financial condition and results of operations; we could be held liable for errors and omissions; the business services industry is competitive and fragmented, if we are unable to compete effectively, our business, financial condition and results of operations could be negatively impacted; failure to maintain our reputation and brand could impact our ability to attract and retain clients, employees and future acquisition targets, and may have a material adverse effect on our business, financial condition and results of operations; we are dependent on our existing client base and our ability to retain and expand our relationships with those clients; our clients may terminate our engagements with little or no notice and without penalty, which may result in unexpected declines in our revenue or unexpected costs; given our levels of share-based compensation, our tax rate may vary significantly depending on our stock price; we may be subject to the actions of activist stockholders; rapid technological changes could significantly impact our competitive position, client relationships and operating results and our ability to realize the anticipated benefits of our acquisition of the non-attest business assets and liabilities of Marcum and CBIZ CPAs P.C.’s purchase from Marcum of substantially all of Marcum’s attest business assets (the “Transaction”); the widespread outbreak of a communicable illness or any other public health crisis could adversely affect our business, financial condition and results of operations; we require a significant amount of cash for interest payments on our debt and to expand our business as planned; terms of our amended and restated credit agreement (the “2024 Credit Facilities”) providing for $2.0 billion in senior secured credit facilities, consisting of a $1.4 billion term loan and $600 million revolving credit facility, could adversely affect our ability to run our business and/or reduce stockholder returns; our failure to satisfy covenants in our debt instruments could cause a default under those instruments; our increased leverage following the Transaction may adversely impact our business; we may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock; the significant number of shares issuable as the stock consideration in the Transaction may adversely impact our stock price; the future issuance of additional shares could adversely affect the price of our common stock; there is volatility in our stock price; and the price of our common stock could be adversely impacted if we do not perform to expectations following the Transaction.
Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Should one or more of these risks materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or implied. Consequently, no forward-looking statement can be guaranteed. Our actual future results may vary materially. All forward looking statements made in this release are made only as of the date hereof, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are advised, however, to consult any further disclosures we make on related subjects in the current, quarterly, periodic and annual reports we file with the Securities and Exchange Commission (“SEC”). Also note that we provide a cautionary discussion of the risks, uncertainties and possibly inaccurate assumptions relevant to our businesses in “Item 1. Business” and “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. These are factors that we think could cause our actual results to differ materially from expected and historical results. Other factors besides those described here could also adversely affect our operating or financial performance.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), we also present Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (“EPS”), Adjusted EBITDA, and Free Cash Flow, which are non-GAAP measures. These non-GAAP measures are adjusted to exclude the impact of the Transaction, integration costs, amortization of acquired intangible assets, and other significant non-operating related gains and losses management does not consider ongoing in nature. The presentation of non-GAAP financial information is designed to supplement the Company’s financial information presented in accordance with GAAP, is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making, and to evaluate results relative to employee compensation targets. We believe that these non-GAAP financial measures provide meaningful supplemental information to stockholders, debt holders, and other interested parties in assessing our performance. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance by excluding significant acquisition expenses, certain one-time non-recurring items, and gains and losses that management does not consider ongoing in nature. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making and (2) they are used by our stockholders and analyst community to determine the health of our business. These non-GAAP measures may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such non-GAAP measures, which may include exclusions of non-recurring items, should not be construed as an inference that the Company's future results will be unaffected by other non-recurring items. Management provides specific information regarding the GAAP amounts excluded from or included in these non-GAAP financial measures. Additionally, management provides reconciliations of these non-GAAP financial measures to their most comparable financial measures presented in accordance with GAAP. Please see the schedules captioned “GAAP Reconciliation” at the end of this release for additional information and the applicable reconciliations. The Company does not reconcile its forward-looking non-GAAP financial measures to the most comparable financial measure presented in accordance with GAAP, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible without unreasonable efforts. For example, the Company may be unable, without unreasonable efforts, to predict with reasonable certainty the timing or amount of integration costs, amortization of acquired intangible assets and certain other significant non-operating related gains and losses on a forward-looking basis. The significance of this unavailable information could have a material impact on the Company’s GAAP results. The Company provides forward-looking non-GAAP financial measures that it believes will be achieved; however, it cannot accurately predict all of the components of the most directly comparable financial measures presented in accordance with GAAP, and the GAAP measures may be materially different than the non-GAAP measures.
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(In thousands, except percentages and per share data)
Three Months Ended March 31, 2026 % 2025 %Revenue$848,579 100.0% $838,014 100.0%Operating expenses(1) 622,562 73.4 609,912 72.8 Gross margin 226,017 26.6 228,102 27.2 Corporate general and administrative expenses(1) 29,568 3.5 28,070 3.3 Operating income 196,449 23.1 200,032 23.9 Other (expense) income: Interest expense (23,916) (2.8) (25,156) (3.0)Gain from acquisition related adjustment, net 57,955 6.8 — — Other expense, net(1) (2) (4,016) (0.5) (1,966) (0.2)Total other income (expense), net 30,023 3.5 (27,122) (3.2)Income before income tax expense 226,472 26.7 172,910 20.6 Income tax expense 64,860 50,137 Net income$161,612 19.0% $122,773 14.7% Diluted earnings per share$2.63 $1.91 Diluted weighted average common shares outstanding 61,537 64,142 Other data: Adjusted EBITDA(3)$244,343 28.8% $240,725 28.7%Adjusted Diluted EPS(3)$2.50 $2.33 (1) We sponsor a Non-qualified Deferred Compensation Plan (the "deferred compensation plan"), under which a CBIZ employee’s compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. The activities related to the deferred compensation plan are recorded in "Corporate and Other" for segment reporting purposes. Gains and losses resulting from the adjustments to the fair value of the invested assets in the deferred compensation plan are recorded as an increase or decrease to the "Other income (expense), net", directly offset by the same adjustments as an increase or decrease to compensation expense (recorded as "Operating expense" or "Corporate general and administrative expense") in the accompanying Unaudited Condensed Consolidated Statements of Comprehensive Income. The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share.
Income and expenses related to the deferred compensation plan for the three months ended March 31, 2026, and 2025, are as follows (in thousands, except percentages):
Three Months Ended March 31,Income statement line items: 2026 % of Revenue 2025 % of RevenueOperating expense $(3,069) (0.4)% $(2,432) (0.3)%Corporate general and administrative income (319) —% (119) —%Other expense, net 3,388 0.4% 2,551 0.3% Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended March 31, 2026, and 2025, are as follows (in thousands, except percentages):
Three Months Ended March 31, 2026 2025 As
Reported Deferred Compensation Plan Adjusted % of
Revenue As
Reported Deferred Compensation Plan Adjusted % of
RevenueGross margin$226,017 $(3,069) $222,948 26.3% $228,102 $(2,432) $225,670 26.9%Operating income 196,449 (3,388) 193,061 22.8% 200,032 (2,551) 197,481 23.6%Other expense, net (4,016) 3,388 (628) (0.1)% (1,966) 2,551 585 0.1%Income before income tax expense 226,472 — 226,472 26.7% 172,910 — 172,910 20.6% (2) Included in "Other expense, net" for the three months ended March 31, 2026, and 2025, is expense of $0.2 million and $0.5 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ's prior acquisitions.
(3) Refer to the schedules reconciling Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable GAAP financial measures at the end of this release and for additional information as to the usefulness of the non-GAAP financial measures to stockholders and investors.
CBIZ, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SELECT SEGMENT DATA
(In thousands)
Three Months Ended March 31, 2026 2025 Revenue Financial Services(1)$740,330 $725,038 Benefits and Insurance Services 108,249 112,976 Total Revenue$848,579 $838,014 Gross Margin Financial Services(1)$209,560 $204,280 Benefits and Insurance Services 23,015 27,618 Operating expenses - unallocated(2): Other expense (9,627) (6,228)Deferred compensation 3,069 2,432 Total Gross Margin$226,017 $228,102 As a % of Revenue 26.6% 27.2% (1) During the three months of March 31, 2026, the National Practice practice was combined with the Financial Service practice group to better align with internal management and reporting structure. As a result, the Financial Services revenue and gross margin for the three months ended March 31, 2025 was adjusted to reflect this change.
(2) Represents operating expenses not directly allocated to individual businesses, including stock-based compensation, consolidation and integration charges, and certain advertising expenses. "Operating expenses - unallocated" also includes gains or losses attributable to the assets held in a rabbi trust associated with the Company's deferred compensation plan. These gains or losses do not impact "Income before income tax expense" as they are directly offset by the same adjustment to "Other income (expense), net" in the Consolidated Statements of Comprehensive Income. Net gains or losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded as compensation expense (income) in "Operating expenses" and “Corporate, general and administrative expenses,” and offset in "Other income (expense), net."
CBIZ, INC.
SELECT CASH FLOW DATA (UNAUDITED)
(In thousands)
Three Months Ended March 31, 2026 2025 Net income$161,612 $122,773 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 23,750 24,791 Bad debt expense, net of recoveries 1,409 417 Adjustments to contingent earnout liability, net 195 502 Deferred income taxes 7,530 5,639 Stock-based compensation expense 14,660 4,320 Amortization of deferred financing fees 1,349 1,298 Other, net 837 (289)Changes in assets and liabilities, net of acquisitions and divestitures: Accounts receivable, net (214,671) (201,258)Other assets 2,910 (8,990)Accounts payable (4,191) 11,985 Income taxes payable 49,791 45,626 Accrued personnel costs (77,295) (84,642)Other liabilities 6,599 (10,438)Net cash used in operating activities (25,515) (88,266)Net cash used in investing activities (2,919) (4,961)Net cash provided by (used in) financing activities (12,578) 55,363 Net decrease in cash, cash equivalents and restricted cash (41,012) (37,864)Cash, cash equivalents and restricted cash at beginning of year 218,090 187,170 Cash, cash equivalents and restricted cash at end of period$177,078 $149,306 Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet:Cash and cash equivalents$28,718 $8,850 Restricted cash 40,622 40,777 Cash equivalents included in funds held for clients 107,738 99,679 Total cash, cash equivalents and restricted cash$177,078 $149,306 CBIZ, INC.
GAAP RECONCILIATION
Operating Cash Flow to Free Cash Flow(1)
(Unaudited. Amounts in thousands, except per share data)
Three Months Ended March 31, 2026 2025 Net cash used in operating activities$(25,515) $(88,266)Less: Additions to property and equipment (3,000) (5,177)Free Cash Flow$(28,515) $(93,443) (1) This table reconciles Free Cash Flow to the most directly comparable GAAP financial measure of net cash provided by operating activities. Free Cash Flow is a non-GAAP measure that management believes provides a more complete understanding of the factors and trends affecting our cash flows. This information is useful to investors, as it offers a measure of cash generated from our business that can be used for our strategic business objectives.
CBIZ, INC.
SELECT FINANCIAL DATA AND RATIOS (UNAUDITED)
(In thousands, except percentages, DSO, and per share data)
March 31, 2026 December 31, 2025Cash and cash equivalents$28,718 $18,290 Restricted cash 40,622 38,234 Accounts receivable, net 769,442 555,995 Other current assets 77,639 79,693 Current assets before funds held for clients 916,421 692,212 Funds held for clients 152,862 207,037 Goodwill and other intangible assets, net 2,856,166 2,869,790 Total assets 4,629,960 4,409,528 Current liabilities before client fund obligations, excluding short-term debt 427,781 462,484 Client fund obligations 152,951 206,738 Current portion, Term Loan(1) 78,750 70,000 Revolver Facility(1) 239,000 142,400 Long-term portion, Term Loan(1) 1,233,750 1,260,000 Total liabilities 2,735,784 2,647,461 Treasury stock (1,110,111) (1,078,521) Total stockholders' equity 1,894,176 1,762,067 Debt to equity 69.3% 75.5%Days sales outstanding (DSO)(2) 99 71 Shares outstanding 54,299 54,380 Basic weighted average common shares outstanding 61,424 62,909 Diluted weighted average common shares outstanding 61,537 63,240 (1) Reflects the gross debt for the Term Loan and Revolving Credit Facility excluding the associated unamortized deferred debt issuance costs totaling $15.1 million and $16.5 million, respectively, as of March 31, 2026 and December 31, 2025.
(2) DSO is provided for continuing operations and represents accounts receivable, net, at the end of the period, divided by trailing twelve-months daily revenue. The Company has included DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of the Company's ability to collect on receivables in a timely manner. DSO should not be regarded as an alternative or replacement to any measurement of performance under GAAP. DSO on March 31, 2025, was 96.
CBIZ, INC.
GAAP RECONCILIATION
Net Income (Loss) and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin(1)
(Unaudited. Amounts in thousands, except per share data)
Three Months Ended March 31, 2026 Financial
Services Benefits and
Insurance
Services Corporate &
Other Consolidated EPSNet income (loss)$208,687 $23,390 $(70,465) $161,612 $2.63 Adjustments: Amortization of acquired intangible assets 17,135 1,519 — 18,654 0.30 Integration costs related to acquisitions(2) 14,800 23 9,046 23,869 0.39 Gain from acquisition related adjustment, net(3) — — (57,955) (57,955) (0.94)Stock-based compensation(4) 658 — 3,649 4,307 0.07 Income tax effect related to adjustments — — 3,186 3,186 0.05 Adjusted net income (loss)$241,280 $24,932 $(112,539) $153,673 $2.50 Interest expense — — 23,916 23,916 Income tax expense — — 64,860 64,860 Tax effect related to the adjustments above — — (3,186) (3,186) Depreciation(5) 3,184 507 1,389 5,080 Adjusted EBITDA$244,464 $25,439 $(25,560) $244,343 As a % of Revenue 33.0% 23.5% N/A 28.8% Three Months Ended March 31, 2025 Financial
Services Benefits and
Insurance
Services Corporate &
Other Consolidated EPSNet income (loss)$204,465 $27,945 $(109,637) $122,773 $1.91 Adjustments: Amortization of acquired intangible assets 16,890 1,776 — 18,666 0.29 Integration costs related to acquisitions(2) 2,513 156 13,023 15,692 0.24 Litigation costs — — 796 796 0.01 Stock-based compensation(4) — — 2,309 2,309 0.04 Income tax effect related to adjustments — — (10,863) (10,863) (0.16)Adjusted net income (loss)$223,868 $29,877 $(104,372) $149,373 $2.33 Interest expense — — 25,156 25,156 Income tax expense — — 50,137 50,137 Tax effect related to the adjustments above — — 10,863 10,863 Depreciation(5) 3,558 549 1,089 5,196 Adjusted EBITDA$227,426 $30,426 $(17,127) $240,725 As a % of Revenue 31.4% 26.9% N/A 28.7% (1) This table reconciles Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin to the most directly comparable GAAP financial measures. Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin exclude the impact of the Transaction and other significant non-operating related gains and losses that management does not consider on-going in nature. Please refer to the 'Non-GAAP Financial Measures' section for further management discussion.
(2) These costs include, but are not limited to, certain consulting, technology, personnel, as well as other integration costs related to the Transaction.
(3) Gain related the finalization of working capital and related purchase price adjustments associated with the Transaction.
(4) Stock-based compensation expense reported for the three months ended March 31, 2026 and 2025 excluded $3.2 million and $3.3 million, respectively, of stock-based compensation expense reported as “Integration costs related to acquisitions” above.
(5) Depreciation expense reported for the three months ended March 31, 2026 and 2025 excluded $16 thousand and $0.9 million, respectively, of depreciation expense reported as “Integration costs related to acquisitions” above. The accelerated depreciation was associated with certain technology assets from the Transaction.
CBIZ (CBZ - Free Report) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +9.72%. A quarter ago, it was expected that this provider of outsourced business services would post a loss of $0.66 per share when it actually produced a loss of $0.7, delivering a surprise of -6.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
CBIZ, which belongs to the Zacks Consulting Services industry, posted revenues of $848.58 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $838.01 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
CBIZ shares have lost about 35.6% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for CBIZ?While CBIZ 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 CBIZ 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 $0.80 on $700.08 million in revenues for the coming quarter and $3.78 on $2.84 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, Consulting Services is currently in the top 40% 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.
Hackett Group (HCKT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This consulting company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -14.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Hackett Group's revenues are expected to be $71.65 million, down 6% from the year-ago quarter.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CBIZ (CBZ - Free Report) . CBZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.83, which compares to its industry's average of 14.87. CBZ's Forward P/E has been as high as 30.87 and as low as 13.83, with a median of 20.19, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBZ has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.3.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CBIZ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBZ feels like a great value stock at the moment.
Shares of CBIZ (CBZ - Free Report) have gained 10.5% over the past four weeks to close the last trading session at $30.5, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $41 indicates a potential upside of 34.4%.
The mean estimate comprises four short-term price targets with a standard deviation of $13.24. While the lowest estimate of $31.00 indicates a 1.6% increase from the current price level, the most optimistic analyst expects the stock to surge 96.7% to reach $60.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in CBZ. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CBZ Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 8.6%.
Moreover, CBZ currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CBZ could gain, the direction of price movement it implies does appear to be a good guide.
On May 6, 2026, GatePass Capital, LLC disclosed a new position in CBIZ (CBZ 0.76%), acquiring 98,163 shares in an estimated $3.46 million trade based on the quarterly average price.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 6, 2026, GatePass Capital, LLC initiated a new position in CBIZ, purchasing 98,163 shares. The estimated transaction value was approximately $3.46 million, calculated using the average unadjusted closing price for the first quarter of 2026. The quarter-end value of the position was $2.64 million, reflecting both trading activity and share price movement.
What else to knowThis was a new position for GatePass Capital, LLC, representing 1.23% of its reportable assets under management as of March 31, 2026.
Top five holdings after the filing:
CINF: $15.30 million (7.4% of AUM)SHV: $7.86 million (3.8% of AUM)SPY: $7.59 million (3.7% of AUM)MINT: $7.38 million (3.6% of AUM)STEW: $7.36 million (3.6% of AUM)As of May 5, 2026, CBIZ shares were priced at $31.30, down 56.5% over the past year, and underperforming the S&P 500 by 85.0 percentage points.
Company overviewMetricValueRevenue (TTM)$2.77 billionNet income (TTM)$154.28 millionPrice (as of market close May 5, 2026)$31.30One-year price change(56.5%)Company snapshotOffers accounting, tax, financial advisory, valuation, risk consulting, employee benefits, payroll, insurance, and IT consulting services across three primary business segments.Generates revenue through a diversified service model, providing recurring and project-based solutions to businesses and individuals in financial, insurance, and advisory domains.Serves small and medium-sized businesses, individuals, governmental entities, and not-for-profit organizations in the United States and Canada.CBIZ is a leading provider of professional services, leveraging a multi-segment platform to deliver financial, insurance, and advisory solutions. Its scale and breadth of offerings allow it to address a wide range of client needs, supporting organizations through complex regulatory and operational environments. CBIZ's diversified client base and recurring revenue streams provide resilience and growth opportunities within the specialty business services sector.
What this transaction means for investorsGatePass Capital, an Ohio-based investment advisor, recently disclosed the purchase of $2.6 million worth of CBIZ stock (CBZ) during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.
To begin, CBIZ stock has struggled recently. Shares have declined in value by around 55% over the past year. The company delivered a disappointing first-quarter earnings report. Revenue came in below consensus analyst expectations, and management lowered guidance, citing demand uncertainty.
All that said, some investors may be intrigued by the stock’s newfound affordability. Shares now trade at a price-to-sales (P/S) ratio of around 0.7x. That’s far below the stock’s 10-year average P/S ratio of 1.5x, and it’s close to the 10-year low of 0.6x, recorded earlier this year.
In summary, CBIZ stock has come under pressure due to disappointing results and lowered guidance. However, value-minded investors may want to give the stock a closer look due to its low valuation.
Cleveland, May 14, 2026 (GLOBE NEWSWIRE) -- CBIZ, Inc. (NYSE: CBZ), a leading national professional services advisor, today released the latest quarterly edition of its Mid-Market Pulse Report . The study reveals that while mid-market organizations are ambitious, resilient, and focused on growth, execution is increasingly challenged by rising costs, workforce constraints, and ongoing economic and policy uncertainty.
Investors in CBIZ, Inc. (CBZ - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 17, 2026 $60 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for CBIZ shares, but what is the fundamental picture for the company? Currently, CBIZ is a Zacks Rank #3 (Hold) in the Consulting Services industry that ranks in the Bottom 23% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 80 cents per share to 75 cents in that period.
Given the way analysts feel about CBIZ right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Economic strength, encouraging service activities, and the success of the work-from-home trend enable Zacks Consulting Services industry players to meet demand.
Driven by these positives, investors interested in the industry would do well to consider stocks like Stantec Inc. (STN - Free Report) , CBIZ, Inc. (CBZ - Free Report) and Charles River Associates (CRAI - Free Report) in their portfolios.
About the Industry Companies grouped under the Consulting Services category offer professional advice in management, IT, human resources, environmental regulations, logistics, marketing and real estate, serving multiple end markets. The space includes prominent names such as Accenture and Gartner. The industry focuses on channeling money and efforts toward more effective operational components, such as technology, digital transformation and data-driven decision-making. To position themselves suitably in the post-pandemic era and better utilize the opportunities that an economic recovery will bring, service providers are increasing their efforts to formulate and reassess strategic initiatives, identify sources of demand and target end markets.
What's Shaping the Future of the Consulting Services Industry? Exponential Growth: This multi-billion-dollar industry has entered a trajectory of exponential expansion since the 2008 financial crisis, fueled by digital transformation and innovation-driven efficiencies. The trend has sustained steady revenues, profits and cash-flow growth, enabling most industry players to distribute stable dividends.
Economic Recovery: The sector is a major beneficiary of the broader economy and increasingly digital-driven service activities. According to the second estimate released by the Bureau of Economic Analysis, the economy remained resilient, with GDP growing 1.6% in the first quarter of 2026 against a 0.5% increase in the fourth quarter of 2025. Non-manufacturing activities remained strong, as reflected in the April Services PMI, which stayed above the 50% threshold for the 22nd consecutive month.
Strong Demand Environment: The consulting services industry remains among the least disrupted by recent global uncertainties. Even in volatile conditions, organizations seek extensive guidance on safeguarding their workforce while strengthening ties with consumers and shareholders. The industry was an early pioneer of remote collaboration, now embedded in the new normal. Its work model allows players to operate efficiently, increasingly powered by AI-driven insights, digital platforms and agile delivery frameworks.
Zacks Industry Rank Indicates Weak Near-Term Prospects The Consulting Services industry, which is housed within the broader Business Services sector, currently carries a Zacks Industry Rank of #190. This rank places it in the bottom 23% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term growth prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and current valuation.
Industry's Price Performance The Consulting Services industry has underperformed the S&P 500 composite and the broader sector over the past 12 months.
The industry has declined 40.6% against the S&P 500 composite’s growth of 31.1%. The broader sector has declined 21.8% in the said time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is a commonly used multiple for valuing consulting services companies, we see that the industry is currently trading at 14.67X, below the S&P 500’s 22.23X and the sector’s 17.38X.
Over the past five years, the industry has traded as high as 31.53X and as low as 14.39X, with a median of 26.15X, as the charts below show.
Price to Forward 12 Months P/E Ratio
3 Consulting Services Stocks to Consider Stantec: The company provides professional services in infrastructure and facilities. It remains well-positioned for continued success, supported by industry resilience and effective internal strategies. STN benefits from strong macroeconomic and structural drivers while maintaining sharp execution on its projects, enabling margin expansion and earnings growth.
Stantec operates in a resilient sector shaped by long-term global needs, including water security, aging infrastructure, climate change response, advanced manufacturing and emerging technologies. These trends are expected to sustain strong project demand across regions.
Stantec’s consistent focus on high-quality project execution and addressing clients’ most urgent infrastructure and sustainability challenges supports steady growth. This disciplined approach continues to drive margin improvement and robust earnings performance.
The Zacks Consensus Estimate for the company’s 2026 EPS has increased 0.5% in the past 60 days to $4.50. STN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: STN
Charles River Associates: Technologically advanced analytic techniques continue to raise both complexity and safety expectations, and Charles Riveris well-positioned to capitalize on these shifts. With a highly educated employee base and in-depth industry knowledge, the company delivered growth with high-quality analytical and strategic consulting services across diverse industries.
Presence across North America and Europe has been benefiting the company for long-term growth. This international footprint also fosters collaboration with leading professionals globally, further solidifying its expertise and appeal. Its Forensic Services practice continued to see strong demand across cybersecurity, fraud investigations, trade-secret disputes and litigation support. The Legal and Regulatory Services and Energy and Life Sciences Services are also witnessing strong growth, while the Finance practice remains a significant revenue generator across corporate governance disputes, mergers, bankruptcy matters, securities litigation, insurance cases, and international arbitration.
The Zacks Consensus Estimate for the company’s 2026 EPS has increased 1.1% in the past 60 days to $8.52. CRAI also currently carries a Zacks Rank #3.
Price and Consensus: CRAI
CBIZ: With its service breadth and specialized expertise, this provider of financial, insurance and advisory services has established itself as one of the largest professional services providers for middle-market businesses, solidifying its competitive edge and long-term growth potential.
CBIZ is entering a strong growth phase, fueled by strategic expansion and a reinforced market position. The integration of Marcum has unlocked new synergies, enhanced service offerings, and strengthened relationships with clients and stakeholders. The Marcum transaction significantly expands CBIZ’s capabilities and client base, positioning the firm for broader market reach and cross-selling opportunities.
The Zacks Consensus Estimate for the company’s 2026 EPS has increased 7.7% in the past 60 days to $4.07. CBIZ currently carries a Zacks Rank #3.
Draganfly (NASDAQ: DPRO - Get Free Report) and ASGN (NYSE: ASGN - Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations. Analyst Ratings This is a breakdown of
RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #AI--Apex Systems, a leading global technology solutions firm and one of seven ASGN brands that will be unifying under the new Everforth brand (NYSE: ASGN), today announced the latest evolution of its partnership with Databricks, the Data and AI company, by reaching the Silver Tier in the Brickbuilder Partner Network. Through the partnership with Databricks, Apex Systems helps enterprise clients implement and scale data engineering, collaborative data science, full li.
RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #AI--Apex Systems, a leading global technology solutions firm and one of seven ASGN brands that will be unifying under the new Everforth brand (NYSE: ASGN), today announced that it has been named a 2026 Infor Partner Award Network (IPN) winner for Americas Source and Co-Sell Partner of the Year. This award recognizes Apex's achievements in delivering value and innovation to customers through its partnership with Infor. IPN Awards highlight outstanding partners for the.
SG Americas Securities LLC cut its position in shares of ASGN Incorporated (NYSE:ASGN – Free Report) by 44.7% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 40,483 shares of the business services provider’s stock after selling 32,741 shares during the period. SG Americas Securities LLC owned about 0.09% of ASGN worth $1,950,000 as of its most recent filing with the Securities & Exchange Commission.
Several other hedge funds have also made changes to their positions in ASGN. New South Capital Management Inc. increased its stake in shares of ASGN by 46.0% during the third quarter. New South Capital Management Inc. now owns 456,116 shares of the business services provider’s stock valued at $21,597,000 after buying an additional 143,696 shares during the period. Tudor Investment Corp ET AL purchased a new stake in ASGN in the third quarter worth about $8,030,000. Congress Asset Management Co. purchased a new stake in ASGN in the third quarter worth about $4,065,000. Reinhart Partners LLC. grew its holdings in ASGN by 5.2% during the 3rd quarter. Reinhart Partners LLC. now owns 1,072,427 shares of the business services provider’s stock worth $50,780,000 after acquiring an additional 53,021 shares in the last quarter. Finally, SummerHaven Investment Management LLC bought a new position in ASGN during the 3rd quarter worth about $797,000. 95.36% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades Several equities research analysts have recently commented on ASGN shares. BMO Capital Markets restated an “outperform” rating and issued a $65.00 price target on shares of ASGN in a report on Friday, February 6th. Wall Street Zen downgraded shares of ASGN from a “buy” rating to a “hold” rating in a research note on Sunday, March 22nd. Robert W. Baird set a $62.00 price objective on shares of ASGN in a report on Thursday, February 5th. Wells Fargo & Company upped their target price on ASGN from $49.00 to $54.00 and gave the stock an “equal weight” rating in a report on Thursday, February 5th. Finally, Truist Financial increased their target price on ASGN from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday, January 27th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $54.71.
Get Our Latest Stock Analysis on ASGN
ASGN Stock Down 0.1% Shares of ASGN stock opened at $39.03 on Monday. ASGN Incorporated has a fifty-two week low of $34.59 and a fifty-two week high of $62.76. The firm has a market capitalization of $1.61 billion, a PE ratio of 14.95 and a beta of 0.89. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.16 and a current ratio of 2.16. The stock’s 50-day simple moving average is $42.67 and its 200-day simple moving average is $45.47.
ASGN (NYSE:ASGN – Get Free Report) last released its earnings results on Wednesday, February 4th. The business services provider reported $1.15 EPS for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.03). ASGN had a return on equity of 10.94% and a net margin of 2.85%.The firm had revenue of $980.10 million for the quarter, compared to analyst estimates of $979.05 million. During the same period last year, the firm earned $1.28 EPS. The company’s revenue for the quarter was down .5% compared to the same quarter last year. ASGN has set its Q1 2026 guidance at 0.930-1.020 EPS. Equities analysts expect that ASGN Incorporated will post 5.15 earnings per share for the current year.
ASGN Profile (Free Report)
ASGN Incorporated (NYSE:ASGN) is a leading provider of specialized staffing and professional services, delivering tailored solutions across information technology, digital transformation, engineering and scientific disciplines. Through its diversified portfolio of brands, ASGN connects clients—ranging from life sciences and healthcare firms to technology enterprises and government agencies—with highly skilled consultants, project teams and permanent personnel. The company’s model emphasizes both temporary staffing and long-term consulting engagements to address complex talent and project needs.
ASGN’s service offerings are organized into two main business segments.
Featured Stories Five stocks we like better than ASGN Want to see what other hedge funds are holding ASGN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ASGN Incorporated (NYSE:ASGN – Free Report).
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RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #earnings--ASGN Incorporated (NYSE: ASGN) announced today that it will be changing its legal name to Everforth, Inc., effective April 24, 2026. That same day, the Company will cease trading under the New York Stock Exchange ticker symbol “ASGN” and begin trading under “EFOR”. These changes are part of the Company's transformation announced on November 20, 2025, and reflect its commitment to a unified brand identity. There is no action required by the Company's stockholders.
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RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #EFOR--ASGN Incorporated (NYSE: ASGN), a leading provider of IT solutions to the commercial and government sectors, soon to be renamed Everforth, Inc., reported financial results for the quarter ended March 31, 2026. Highlights First Quarter 2026 Revenues were $968.3 million Net income was $5.5 million Adjusted EBITDA (a non-GAAP measure) was $83.6 million (8.6 percent of revenues) Operating cash flows were $18.5 million and Free Cash Flow (a non-GAAP measure) was $9.1.
ASGN Inc came out with quarterly earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -29.59%. A quarter ago, it was expected that this staffing company would post earnings of $1.18 per share when it actually produced earnings of $1.15, delivering a surprise of -2.54%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
ASGN Inc, which belongs to the Zacks Computers - IT Services industry, posted revenues of $968.3 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $968.3 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ASGN Inc shares have lost about 15.8% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for ASGN Inc?While ASGN Inc has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ASGN Inc was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $1.03 billion in revenues for the coming quarter and $5.03 on $4.04 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, Computers - IT Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Cerence (CRNC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This automotive artificial intelligence developer is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -60.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cerence's revenues are expected to be $60.92 million, down 21.9% from the year-ago quarter.
Pre-Market Stock Futures: Futures are trading lower on this Thursday, but what a difference a month makes: 30 days ago, the worries over inflation and the spiraling situation in Iran were weighing heavily on the stock market. On Wednesday, the Nasdaq Composite and S&P 500 hit new all-time highs, driven by hopes for an extended U.S.-Iran ceasefire and strong corporate earnings. While the Nasdaq set an intraday record for the fifth time in six sessions and the S&P 500 finished at a record, the Dow Jones Industrials and the Russell 2000 did not print all-time highs, but both finished the session strongly at 49,490 and 2,780, respectively. The Nasdaq closed Wednesday’s trading at 24,657, up 1.64%, while the venerable S&P 500 was last seen at 7,137, up 1.05%, as the duo printed those new records.
Treasury Bonds: Just like Tuesday, with stocks rallying higher, the sellers emerged again, as yields were modestly higher over the belly and long end of the Treasury market on Wednesday. Analysts cited resurgent inflation concerns and escalating tensions in the Middle East, with oil prices climbing, prompting markets to reassess how quickly the Federal Reserve may cut interest rates. Investors are increasingly focused on the risk of stubborn inflation, driving bond yields higher as they demand greater compensation for holding longer-duration debt. The 30-year bond closed at 4.91%, while the 10-year note was last at 4.31%.
Oil and Gas: While some across the energy complex welcomed President Trump’s extension of the ceasefire, the ongoing instability in the Strait of Hormuz, which remains effectively shut, has kept sellers leaning on the major oil benchmarks. Brent Crude closed Wednesday at $101.40, up 2.99%, while West Texas Intermediate finished the session at $92.56, up 3.22%. Natural gas had another solid day, closing at $2,71, up 0.51%.
Gold: Gold had another positive day, consolidating near $4,800. This comes as Chris Mancini, a portfolio manager for the Gabelli Gold Fund, put forth the proposition that Gold will become the primary alternative to the U.S. dollar, and they see a continued rise to the $6,000 level. The final trade on Wednesday was posted at $4, 737 up 0.39%, while the last print for Silver came in at $77.54, up 1.31%.
Crypto: The Cryptocurrency sector continued its strong rally, with Bitcoin surging over 2% to top $78,000, reaching its highest level in more than 10 weeks. Analysts cited the extension of the ceasefire and some potential short covering as Bitcoin continues to try and break out from a months-long trading range. At the same time, the broader market also saw significant gains, with the CoinDesk MemeCoin Index rising 3.4% and tokens like DOGE adding 3.8%. At 8 AM EDT, Bitcoin was quoted at $77,716, while Ethereum was trading at $2,331.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, April 23, 2026.
Upgrades: Boston Scientific (NYSE: BSX | BSX Price Prediction) was upgraded to Buy from Hold at Nephron Research, which has an $85 target price for the company. McDonald’s (NYSE: MCD) was upgraded to Neutral from Sell at Rothschild Redburn & Co, which lifted the target price for the fast-food giant to $306 from $260. Murphy USA (NYSE: MUSA) was raised to Neutral from Underperform at Bank of America, which launched the target price for the shares to $550 from $350. On Semiconductor (NASDAQ: ON) was upgraded to Buy from Neutral at B. Riley, which raised the target price for the shares to $115 from $64. Texas Instruments (NYSE: TXN) was upgraded to Equal Weight from underweight at Barclays, which raised the target price for the legacy tech company to $250 from $175. Downgrades: ASGN (NYSE: ASGN) was downgraded to Hold from Buy at Truist Financial, which slashed the target price for the stock to $33 from $60. CSX (NYSE: CSX) was downgraded to Hold from Buy at Vertical Research, with a $44 target price. Deckers Outdoor (NYSE: DECK) was cut to Outperform from Strong Buy at Raymond James, which has a $133 target price for the shares. Madison Square Garden Entertainment (NYSE: MSGS) was cut to Neutral from Buy at Citigroup, which bumped the target price for the shares to $355 from $337. TE Connectivity (NYSE: TEL) was downgraded to Hold from Buy at HSBC, with a $234 target price. Initiations: Datadog (NASDAQ: DDOG) was initiated with a Buy rating at Rothschild Redburn & Co, which has set a $170 target price for the shares. Dynatrace (NYSE: DT) was started with a Neutral rating at Rothschild Redburn & Co, which has a $40 target price Oklo (NYSE: OKLO) was initiated with a Buy rating at HSBC, with a $96 target price for the stock. Palantir Technologies (NASDAQ: PLTR) was initiated with a Buy rating at DZ Bank, with a $175 target price objective.
Sterling Infrastructure (NASDAQ: STRL) was started with an Overweight rating at KeyBanc, with a $572 target price.
SAN DIEGO, April 23, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of investors of ASGN Incorporated (NYSE: ASGN). The investigation focuses on ASGN’s executive officers and whether investor losses may be recovered under federal securities laws.
What if I purchased ASGN securities?
If you purchased ASGN securities and suffered losses on your investment, join our investigation now: Click here to join the investigation.
Or for more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.
Background of the investigation
On April 22, 2026, ASGN reported its first quarter 2026 financial results, which reflected lower-than-expected earnings and declining margins. Following this disclosure, the Company’s stock price declined significantly.
In light of this disclosure, Johnson Fistel is investigating whether ASGN complied with the federal securities laws, including whether the Company’s prior disclosures regarding its business operations and financial outlook were adequate. If you suffered losses from your investment in ASGN stock, contact Johnson Fistel.
About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits and also assists foreign investors who purchased shares on U.S. exchanges. To learn more, visit www.johnsonfistel.com.
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James Baker, Investor Relations – or – Frank J. Johnson, Esq.
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Everforth, formerly ASGN Incorporated, is a U.S.-based IT consulting and professional services provider facing significant recent share price decline. I previously rated ASGN (now EFOR) a Buy in May 2023 due to strong fundamentals and technical oversold signals, resulting in a substantial rally. A subsequent downgrade to hold was driven by execution issues and macroeconomic pressures outweighing apparent valuation discounts.
ASGN Inc. (NYSE:ASGN) shares jumped on Friday as traders reassessed the fallout from a recent earnings miss and soft guidance amid improving tech-led risk appetite.
ASGN will change its name to Everforth, Inc. on April 24, 2026, and begin trading under the ticker "EFOR."
The move reflects its rebranding strategy, with no action required from shareholders and no change to its NYSE listing or CUSIP.
Post-Earnings Selloff And MissThe stock had previously dropped more than 25% after reporting first-quarter EPS of 69 cents, missing the 98-cent consensus estimate, and revenue of $968.3 million, slightly below expectations.
ASGN expects second-quarter revenue of $970 million to $1 billion, with net income of $8.0 million to $13.7 million and adjusted EBITDA of $85 million to $95 million, assuming stable end markets.
ASGN Technical Outlook: Oversold And Below Key AveragesThe company is currently trading within its 52-week range, having a low of $19.31 and a high of $60.75. The stock is trading significantly below its 20-day simple moving average (SMA) of $37.66 and its 50-day SMA of $39.20, suggesting a bearish short-term trend.
Additionally, the stock is trading 46.5% below its 100-day SMA of $44.10, suggesting continued weakness in the intermediate term.
The relative strength index (RSI) is at 18.14, which is considered oversold, suggesting the stock may be under pressure but could also signal a potential rebound.
Key Resistance: $25.00 — This level may act as a barrier for upward movement. Key Support: $20.00 — This level could provide a floor for the stock if it declines further. ASGN Earnings Preview And Analyst ExpectationsASGN is slated to provide its next financial update on July 22, 2026 (estimated).
EPS Estimate: $1.28 (Up from $1.17) Revenue Estimate: $1.02 billion (Flat compared to $1.02 billion) Valuation: P/E of 8.7x (Indicates value opportunity) Analyst Consensus & Recent Actions: The stock has a Hold rating and an average price target of $34.40. Recent analyst moves include:
UBS: Sell (Lowers Target to $35.00) (April 23) Truist Securities: Downgraded to Hold (Lowers Target to $33.00) (April 23) Wells Fargo: Equal-Weight (Lowers Target to $33.00) (April 23) ASGN Shares Rise In Premarket TradingASGN Stock Price Activity: ASGN shares were up 2.92% at $20.10 at last check on Friday, according to Benzinga Pro data.
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Shares of leading customizable HVAC (heating, ventilation, and air conditioning) equipment provider AAON (AAON +6.21%) are up 45% this week after the company delivered expectation-smashing first-quarter earnings earlier this week. Sales and earnings per share grew by 54% and 37% in Q1, far surpassing analysts' hopes. And that's just the start of the good news.
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Alongside these headline figures, AAON:
raised its 2026 revenue outlook to 40% to 45% growth delivered 42% growth from its core AAON-branded sales reported 72% sales growth from its booming BASX unit, which focuses on serving data centers saw its backlog grow 107% to $2.1 billion -- BASX backlog up 160% maintained a companywide book-to-bill ratio above 1 saw a book-to-bill ratio above 2 for its BASX unit projected for margins and capacity to improve in 2026 with new facilities incoming
Image source: Getty Images.
Simply put, AAON is firing on all cylinders. Its 2021 acquisition of BASX for roughly $200 million now looks like an absolute masterstroke, as the young unit just grew sales by 105% to reach $135 million in Q1 revenue. As the hyperscalers pile money into data centers for AI compute at a hard-to-fathom rate, AAON's premium, customizable HVAC equipment and solutions are becoming an indispensable part of the AI revolution's build-out.
That said, as awesome as this news is for AAON right now, investors need to beware that the hyperscaler's blistering expansion plans will likely not last forever -- or, at a minimum, will lead to brutal cyclicality at some point. However, there haven't been any hints yet that the data center build-out is slowing, so I'm not going to say AAON's good times are soon to end. It's impossible to tell how long this cycle will (or won't) last.
Trading at 61 times forward earnings, AAON's valuation isn't outrageous if its outsize sales growth continues -- which isn't a stretch given its booming backlog and BASX unit's book-to-bill ratio of over 2. I'm fascinated by AAON and will be keeping a close eye on it, as it looks like a promising picks-and-shovels play to the AI revolution.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aaon. The Motley Fool has a disclosure policy.
AAON, Inc. is downgraded to a soft Sell due to extreme valuation despite strong operational performance and data center-driven growth. Q1 revenue surged 54.3% to $496.9M, with backlog doubling year-over-year to $2.13B, supporting management's 40–45% revenue growth guidance for 2026. All segments, especially BASX, delivered robust top-line growth, but rising raw material costs compressed gross margins from 26.8% to 25.1%.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Aaon (AAON - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Aaon currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for AAON that show why this maker of air conditioning and heating equipment shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For AAON, shares are up 49.23% over the past week while the Zacks Building Products - Air Conditioner and Heating industry is down 1.07% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 51.49% compares favorably with the industry's 6.08% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Aaon have increased 40.24% over the past quarter, and have gained 35.43% in the last year. In comparison, the S&P 500 has only moved 7.12% and 32.44%, respectively.
Investors should also take note of AAON's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now AAON is averaging 1,385,903 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with AAON.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAON's consensus estimate, increasing from $2.02 to $2.23 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that AAON is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Aaon on your short list.
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Aaon (AAON - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. AAON is quite a good fit in this regard, gaining 30.1% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 42.5% over the past four weeks ensures that the trend is still in place for the stock of this maker of air conditioning and heating equipment.
Moreover, AAON is currently trading at 82.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in AAON may not reverse anytime soon.
In addition to AAON, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Aaon is one of 89 individual stocks in the Construction sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAON's full-year earnings has moved 12.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that AAON has returned about 75.3% since the start of the calendar year. In comparison, Construction companies have returned an average of 14.6%. This shows that Aaon is outperforming its peers so far this year.
Construction Partners (ROAD - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.9%.
In Construction Partners' case, the consensus EPS estimate for the current year increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 7 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 44.4% so far this year, so AAON is performing better this group in terms of year-to-date returns.
Construction Partners, however, belongs to the Building Products - Miscellaneous industry. Currently, this 33-stock industry is ranked #141. The industry has moved +2.2% so far this year.
Aaon and Construction Partners could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
Investors might want to bet on Aaon (AAON - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this maker of air conditioning and heating equipment, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Aaon, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $0.50 per share for the current quarter represents a change of +127.3% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Aaon has increased 5.59% because one estimate has moved higher while one has gone lower.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $2.23 per share, representing a year-over-year change of +65.2%.
The revisions trend for the current year also appears quite promising for Aaon, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.48%.
Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Aaon because of its solid estimate revisions, as evident from the stock's 53% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
, /PRNewswire/ -- AAON, Inc. (NASDAQ: AAON) ("AAON" or the "Company"), today announced that its Board of Directors has declared the Company's next regular quarterly cash dividend of $0.10 per share (or $0.40 annually), payable on June 26, 2026 to stockholders of record as of the close of business on June 5, 2026.
About AAON
Aerial View of AAON Tulsa (PRNewsfoto/AAON) Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit https://aaon.com/investors.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions.
Contact Information
Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone (617) 877-6346
Email: [email protected]
Key Takeaways Comfort Systems backlog surged 80.8% year over year to a record $12.45B as of Q1 2026.FIX Q1 revenues jumped 56.8% while EPS climbed 121.3% on strong tech demand trends.Comfort Systems cited robust bookings and expanding modular capacity as growth drivers. Comfort Systems USA, Inc. (FIX - Free Report) entered 2026 with extraordinary momentum, but investors are now asking whether its record-breaking backlog can continue fueling its rapid expansion. After posting another stellar quarter, the mechanical and electrical contracting leader ended the first quarter of 2026 with backlog reaching an all-time high of $12.45 billion, up 80.8% year over year from $6.89 billion.
The surge reflects persistent demand across advanced technology and industrial markets, especially data center construction. Management noted that technology-related work represented more than half of quarterly revenues, while industrial projects accounted for roughly 75% of overall business activity. The company also reported exceptionally strong bookings during the first quarter of 2026, suggesting demand remains robust despite broader macroeconomic uncertainty. Importantly, Comfort Systems continues to convert backlog into profitable growth at an impressive pace. First-quarter revenues jumped 56.8% year over year to $2.87 billion, while EPS was up 121.3% to $10.51. Margin expansion has also become a defining strength, supported by disciplined execution, favorable project mix and growing modular construction capabilities.
Still, sustaining this momentum may not be easy. FIX faces tougher year-over-year comparisons in the second half of 2026, while labor availability, project timing and customer spending patterns remain key variables. In addition, an elevated backlog does not always guarantee flawless revenue conversion in large-scale construction markets.
Even so, Comfort Systems appears well-positioned. With strong pipelines, expanding modular capacity and durable demand from hyperscale technology customers, the company’s massive backlog could remain a powerful driver of growth and profitability for several quarters ahead.
Comfort Systems, AAON & Carrier Global: Backlog Wars Heat UpComfort Systems, alongside its close peers, AAON, Inc. (AAON - Free Report) and Carrier Global Corporation (CARR - Free Report) , is benefiting from strong HVAC and data center infrastructure demand, though each company is leveraging different growth drivers.
AAON capitalizes on the demand for energy-efficient HVAC systems and customized cooling solutions increasingly required in mission-critical facilities such as data centers. Its focus on high-performance equipment and healthy order trends supports steady backlog growth and pricing power.
On the other hand, Carrier Global offers the broadest global platform among the three, benefiting from commercial HVAC demand, aftermarket services and energy-efficiency upgrades. While its backlog profile is less construction-driven than Comfort Systems', Carrier Global gains from recurring service revenues and long-term sustainability trends, providing more balanced exposure across economic cycles.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 95.6% year to date, significantly outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 39.8, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $42.74 and $50.89 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 48% and 19.1%, respectively.
Image Source: Zacks Investment Research
Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- AAON, Inc. (NASDAQ: AAON) a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, announced today that Matt Tobolski, President and CEO, and Andy Cheung, CFO and Treasurer, will participate in the upcoming William Blair Growth Stock Conference.
Aerial View of AAON Tulsa (PRNewsfoto/AAON) They will speak at 11:00 a.m. EDT on Tuesday, June 2, 2026. The live audio of the event will be accessible on the AAON website at http://investors.aaon.com/events. An archive of the audio recording will also be available on the website following the event.
About AAON
Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.
Contact Information
Joseph Mondillo
Director of Investor Relations
Phone: (617) 877-6346
Email: [email protected]
Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Aaon (AAON - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. AAON is quite a good fit in this regard, gaining 54% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 52.5% over the past four weeks ensures that the trend is still in place for the stock of this maker of air conditioning and heating equipment.
Moreover, AAON is currently trading at 92.3% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in AAON may not reverse anytime soon.
In addition to AAON, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Aaon is one of 88 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for AAON's full-year earnings has moved 12.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AAON has gained about 83.9% so far this year. Meanwhile, stocks in the Construction group have gained about 13.2% on average. This shows that Aaon is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Cardinal (CDNL - Free Report) . The stock has returned 114.6% year-to-date.
For Cardinal, the consensus EPS estimate for the current year has increased 11.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aaon is a member of the Building Products - Air Conditioner and Heating industry, which includes 7 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 37.7% this year, meaning that AAON is performing better in terms of year-to-date returns.
Cardinal, however, belongs to the Engineering - R and D Services industry. Currently, this 22-stock industry is ranked #66. The industry has moved +37.9% so far this year.
Investors with an interest in Construction stocks should continue to track Aaon and Cardinal. These stocks will be looking to continue their solid performance.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Aaon (AAON - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Aaon currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if AAON is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of air conditioning and heating equipment holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For AAON, shares are up 4.16% over the past week while the Zacks Building Products - Air Conditioner and Heating industry is up 2.29% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 50.88% compares favorably with the industry's 0.47% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Aaon have risen 53.5%, and are up 47.4% in the last year. In comparison, the S&P 500 has only moved 10.8% and 30.05%, respectively.
Investors should also pay attention to AAON's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. AAON is currently averaging 1,504,652 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AAON.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAON's consensus estimate, increasing from $2.02 to $2.23 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that AAON is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Aaon on your short list.
Russell 2000 Stocks: Too Early or Finally Interesting?AAON NASDAQ: AAON executives outlined expectations for continued growth in both light commercial HVAC and data center markets during a William Blair presentation, while also addressing recent production challenges, margin pressure and ongoing efforts to scale the company’s operations.
CEO Matt Tobolski said AAON operates through two primary brands: the legacy AAON brand, focused largely on semi-custom and custom rooftop units for light commercial customers, and BASX, which serves data center customers. Both businesses are built around customized solutions intended to improve total cost of ownership, he said.
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AAON Doubles Down: Dividend Raise & Share Buyback PlanTobolski said AAON has expanded rapidly in recent years, growing from under 2 million square feet of factory space to more than 4 million square feet, and from about 2,000 employees to 7,000 employees over roughly four years. He said the company’s recent focus has been on building the operating platform needed to support that scale.
Light Commercial Market Showing Signs of Recovery Asked by William Blair’s Ryan Merkel about the light commercial outlook for 2026, Tobolski said the market is showing signs of improvement. He said AAON’s 2025 volumes were down, but not nearly as much as the broader market, which he described as evidence of outperformance.
“As we exited 2025 ... we’ve continued to see more and more conversations in our traditional transactional type business,” Tobolski said. He added that in the first quarter, those conversations began translating into stronger bookings.
Tobolski said he expects 2026 to be “a good, strong recovery year” for the AAON brand and said the company is continuing to gain share in light commercial markets. He highlighted national account opportunities in healthcare, big-box retail, warehouse and distribution centers as areas where AAON has invested over the past two years.
Production Issues Eased, but Outsourcing Still Weighs on Margins Tobolski also addressed production issues that affected AAON in 2025 and into early 2026. He said 2025 included “a lot of noise,” including the EPA-mandated refrigerant transition, supply chain constraints related to new components and disruption from an ERP implementation that affected coil production at the company’s Longview site.
He said those issues affected Longview and also reduced throughput in Tulsa because Tulsa relies on Longview for internal coil supply. By the first quarter of 2026, however, Tobolski said AAON’s Oklahoma operations were running at record rates.
Margin pressure remains a focus. Tobolski said about 200 basis points of margin pressure in the first quarter came from outsourcing coil production. He said AAON prioritized internal coil capacity for BASX products because data center customers have tighter quality requirements and qualifying additional vendors takes time.
Tobolski said pricing actions have already been put in place to address price-cost dynamics identified late last year. However, he said coil outsourcing will continue in the near term because the company’s consolidated growth rate is expected to be 40% year over year, and internal coil capacity is not ramping as quickly as demand.
For the long term, Tobolski said AAON is targeting gross margins in the mid- to high-30% range for the AAON business, while the BASX business has a target margin profile around 30%. He said BASX margins are being pressured by the pace of growth, with the business doubling last year, expected to double this year and having doubled the year before that.
Data Center Demand Remains Broad-Based On data centers, Tobolski said demand remains strong and that AAON has raised its data center outlook to $1 billion. He emphasized that the company has been careful not to overcommit capacity as it brings new production online, particularly at its Memphis facility.
The Memphis site added 800,000 square feet under roof and represents a major step-up in AAON’s manufacturing footprint, Tobolski said. He said management waited to gain more runtime and confidence in the ramp before taking on more orders.
Tobolski said demand is not limited to liquid cooling. He said AAON continues to see strong demand for traditional airside products, which are used in both cloud and AI data centers. Even liquid-cooled data centers still require 30% to 40% of capacity through air, he said.
For the first quarter, Tobolski said backlog growth was relatively balanced among airside products, chiller products and liquid cooling products, “kind of in that order.”
He also said BASX has more than $2 billion of revenue capacity across its manufacturing fleet, though he cautioned that capacity is not available “like a light switch” and must be ramped. Oregon is close to capacity at roughly $300 million, Longview still has lines and shifts that can be added, and Memphis has four production lines currently vacant that can be turned on over time, he said.
On liquid cooling competition, Tobolski said AAON is not focused on commoditized 500-kilowatt coolant distribution units. Instead, he said the company targets customized, large-capacity systems for hyperscale customers, including 2-, 4-, 5- and 6-megawatt CDUs. He named Motivair, Modine and Vertiv as companies AAON sees in parts of that market.
ERP Rollout Paused as Growth Accelerates Tobolski said AAON is pausing additional ERP go-lives because of the company’s higher growth outlook. Longview and Memphis are currently live on the system, while Oregon would be the next intended site, followed by Tulsa. However, he said no dates have been assigned for those locations.
The company is instead focusing on making sure the system supports higher velocity at Longview and Memphis and adding enhancements that management now views as essential to how AAON wants to operate.
Rooftop Business, Heat Pumps and Operational Discipline In the rooftop business, Tobolski said AAON’s price premium is about 10% relative to closer competitors with more comparable catalog products, though some lower-featured products may be 20% to 30% cheaper. He said AAON sells against competitors based on energy efficiency, cabinet durability, indoor air quality configuration and product life cycle.
Tobolski also discussed AAON’s Alpha Class heat pump platform, which includes ECO, PRO and EXTREME series products. He said the ECO series provides heat pump heating down to about 37 degrees Fahrenheit, the PRO series down to zero degrees and the EXTREME series down to negative 20 degrees. That range allows national account customers with locations across different climates to use a right-sized platform rather than a single product for all sites, he said.
Management also emphasized internal changes designed to support AAON’s growth. Tobolski said AAON has built a professional supply chain organization, added strategic sourcing and vendor scorecards, and increased its focus on lean manufacturing. He said a series of eight Kaizen events on the company’s high-volume 30-ton line in Tulsa increased volume by 20% while reducing work on the line.
In the finance discussion, management said AAON is investing in people, training and processes to improve efficiency, optimization, cash generation and risk management as the company scales.
About AAON NASDAQ: AAONAAON, Inc NASDAQ: AAON is a U.S.-based designer and manufacturer of heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. The company's product portfolio focuses on rooftop packaged units, water-source heat pumps, chillers and custom-engineered solutions that cater to a wide array of building types, from office complexes and schools to data centers and healthcare facilities.
AAON's core offerings include rooftop units available in gas, electric and dual-fuel configurations, precision air-conditioning systems for temperature- and humidity-sensitive environments, and modular chillers suited for both indoor and outdoor installations.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in AAON Right Now?Before you consider AAON, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AAON wasn't on the list.
While AAON currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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On June 02, 2026, AAON Inc (AAON) shares rose 3.4% to $143.50. The stock has experienced significant price fluctuations over the past year, with a 52-week range
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
AAON, Inc. (AAON - Free Report) : This air conditioning and heating equipment company has seen the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.
The Gorman-Rupp Company (GRC - Free Report) : This pumps and pump systems company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.1% over the last 60 days.
ARKO Petroleum Corp. (APC - Free Report) : This fuel distributor in North America has seen the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.
Dell Technologies Inc. (DELL - Free Report) : This information technology solutions, products and services company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.
National Bankshares, Inc. (NKSH - Free Report) : This bank holding company for the National Bank of Blacksburg has seen the Zacks Consensus Estimate for its current year earnings increasing 15.3% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways APPS is one of five stocks highlighted for recent price strength after a 117.8% four-week surge.VPG shares jumped 104.4% in four weeks, backed by a 100% expected earnings growth rate. AAON climbed 50.8% in four weeks. It has an expected earnings growth rate of 65.2% for the current year. Last month, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 3%, 5% and 8%, respectively. Currently, all three major stock indexes are trading at their all-time intraday and closing highs.
This rally was primarily driven by a solid first-quarter 2026 earnings season, continuation of artificial intelligence (AI) trade and expectations of a near-term solution to the Middle East geopolitical conflicts.
As a result, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.
Five such stocks are — Digital Turbine Inc. (APPS - Free Report) , Vishay Precision Group Inc. (VPG - Free Report) , AAON Inc. (AAON - Free Report) , Helios Technologies Inc. (HLIO - Free Report) and ASE Technology Holding Co. Ltd. (ASX - Free Report) .
If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria narrowed down the search from over 7,700 stocks to 15.
Let’s discuss five out of those 15 stocks here:
Digital Turbine offers products and solutions for mobile operators, device OEMs and third parties. APPS operates primarily in Berlin, Singapore and Sydney. APPS operates through two segments, On Device Solutions and App Growth Platform.
APPS’ products include DT Ignite, a mobile device management solution with targeted app distribution capabilities, DT IQ, a customized user experience and app discovery tool, DT Marketplace, an application and content store and DT Pay, a content management and mobile payment solution.
The stock price of Digital Turbine has soared 117.8% over the past four weeks. The company has expected earnings growth of 50% for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 9.1% over the last seven days.
Vishay Precision Group is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications. VPG provides vertically integrated products and solutions for multiple growing markets in the areas of stress measurement, industrial weighing, and manufacturing process control.
VPG’s product portfolio includes: Bulk Metal foil resistors and sensors, strain gages and instruments, load cells, modules and PhotoStress products. VPG also provides systems to control process weighing in food, chemical, and pharmaceutical plants, force measurement systems used to control web tension in paper mills, roller force in steel mills, and cable tension in winch controls, on-board weighing systems installed in logging and waste-handling trucks, and special scale systems used for aircraft weighing and portable truck weighing.
The stock price of Vishay Precision Group has jumped 104.4% over the past four weeks. The company has an expected earnings growth rate of 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.9% over the last 30 days.
AAON is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. AAON’s products serve the new construction and replacement markets.
AAON has successfully gained market share through its semi-custom product lines, which offer the customer value, quality, function, serviceability and efficiency. AAON operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX.
The stock price of AAON has climbed 50.8% over the past four weeks. The company has an expected earnings growth rate of 65.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the last 30 days.
Helios Technologies is benefiting from sustained order momentum, expanding market reach and improving profitability. HLIO has delivered double-digit order growth for more than a year, with backlog also rising. Growth across both Hydraulics and Electronics segments is driven by infrastructure-related demand, OEM strength and recovery in select end markets.
New product launches are broadening HLIO’s addressable markets, including newer applications such as data center thermal management. At the same time, margin recovery is gaining traction through volume leverage and operational efficiencies. HLIO’s solid cash generation and lower leverage provide flexibility to invest, pursue selective acquisitions and enhance shareholder returns.
The stock price of Helios Technologies has surged 21.9% over the past four weeks. The company has an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 30 days.
ASE Technology is a provider of semiconductor manufacturing services in assembly and testing. ASX operates through Packaging, Testing, and EMS. ASX operates primarily in Taiwan, China, South Korea, Japan, Singapore, Malaysia, Mexico, the United States and Europe.
ASX develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing as well as IC packaging, materials and electronic manufacturing services.
The stock price of ASE Technology has rallied 16.8% over the past four weeks. It has an expected earnings growth rate of 84.2% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 36.4% over the last 30 days.
The Zacks Building Products - Air Conditioner & Heating industry remains supported by strong secular growth drivers, including data-center-focused cooling solutions, rising demand for energy-efficient HVAC systems and advanced climate-control technologies. Sustainability initiatives, electrification trends and policy incentives continue to encourage investments in retrofits and smart building solutions. Companies such as Comfort Systems USA (FIX - Free Report) , AAON, Inc. (AAON - Free Report) , SPX Technologies (SPXC - Free Report) and Tecogen Inc. (TGEN - Free Report) are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.
At the same time, the industry faces near-term headwinds from housing market softness, elevated interest rates and tariff-related cost pressures. These factors may affect residential construction activity, project timelines and customer spending decisions, creating some demand volatility. Nevertheless, expanding data center investments, green infrastructure development and the ongoing replacement cycle for aging HVAC systems are expected to drive sustained demand. Strong exposure to commercial, industrial and service markets positions the industry to benefit from durable growth opportunities in the years ahead.
Industry Description The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.
4 Trends Shaping the Future of the Air Conditioner & Heating Industry Data Centers & Specialized Cooling Needs: The data center boom, driven by AI, cloud computing and high-performance computing, is fueling demand for specialized HVAC solutions. Cooling systems for these facilities must deliver precise, reliable performance, which has spurred investment in advanced technologies like liquid cooling and modular units. This segment is becoming a major growth driver for HVAC companies, offering high-margin opportunities and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Meanwhile, technology upgrades and strategic acquisitions are driving growth across the industry. Companies are enhancing customer experience through digital platforms and investing in R&D, distribution, and marketing. Acquisitions are expanding product lines and geographic reach. Meanwhile, service-related revenues—such as maintenance and repair—offer steady income, cushioning against construction market volatility. Also, electrification remains one of the most powerful structural tailwinds for the industry in 2026. Heat pumps continue to gain share versus traditional gas furnaces as performance in colder climates improves and total lifecycle economics become more attractive.
Regulatory-Driven Efficiency Upgrades and Premiumization: Stricter efficiency standards and the transition to low-global-warming-potential refrigerants are driving a new upgrade cycle. Aging equipment and higher efficiency standards are prompting homeowners to upgrade to high-SEER air conditioners, advanced heat pumps and smart thermostats that cut energy use while meeting stricter emissions rules. Federal and state incentives and rebates are further accelerating this trend by offsetting the cost of high-efficiency units. The commercial HVAC market has been experiencing a rebound and transformation, thereby driving fresh HVAC needs. Overall, the HVAC replacement activity remains resilient.
Housing Market Volatility, Tariff and Trade Policy Risks: The broader housing and remodeling market remains uncertain. Higher interest rates, economic fluctuations and shifts in consumer spending patterns can impact renovation and construction activity.
Proposed and evolving U.S. tariff policies have emerged as a growing concern for the air conditioning and heating industry, particularly for refrigerants and imported HVAC components. One area of concern is refrigerants such as R-32, which have become increasingly important following the industry's transition to lower-global-warming-potential refrigerants. Additional tariffs on refrigerants or related supply-chain inputs could raise equipment and servicing costs, potentially leading to higher prices for contractors and end users. While manufacturers are implementing pricing actions and supply-chain adjustments to offset these impacts, the industry expects tariff-related cost pressures to remain a headwind throughout 2026.
Labor Shortages, Supply Chain Constraints, Regulations: The U.S. HVAC industry has been grappling with labor shortages, ongoing supply chain bottlenecks and rising regulatory costs. Limited technician availability is pushing up wages and slowing project timelines, while material shortages and tariffs are driving equipment prices higher. Compliance with low-GWP refrigerant rules and tougher SEER2 standards is adding further manufacturing and training expenses. These pressures are tightening margins and complicating execution, while competition and seasonal demand swings add to overall risk.
Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #31, which places it in the top 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. 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.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since March 2026, the industry’s earnings estimates for 2026 have increased to $4.90 per share (from $4.67).
We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.
Industry Outperforms Sector & S&P 500 The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.
In the same time frame, the industry has gained 34.6% compared with the broader sector’s 20.4% rise. Meanwhile, the Zacks S&P 500 Composite has gained 31.7% during the period.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 29.14X compared with the S&P 500’s 22.17X and the sector’s 21.53.
Over the past five years, the industry has traded as high as 30.37X, as low as 15.87X and at a median of 24.02X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
4 Air Conditioner and Heating Stocks to Buy Now Below, we have discussed four stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.
Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems has been benefiting from robust demand across data centers, semiconductor manufacturing, life sciences, healthcare, and advanced manufacturing projects. The company continues to benefit from AI-driven digital infrastructure investments, with technology projects remaining its largest source of pipeline activity and backlog. Onshoring trends are creating additional opportunities in industrial construction, while expanding modular construction capabilities improve efficiency, productivity and project execution. A broad national footprint, skilled workforce and growing service operations further strengthen its competitive position. The company is also investing in capacity expansion and pursuing disciplined acquisitions, which should support sustained growth and reinforce its leadership in large-scale mechanical and electrical contracting markets.
Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 270.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $43.05 from $42.74 over the past seven days. The estimated figure indicates 49.1% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 39.3%. Again, Comfort Systems’ trailing 12-month return on equity of 51.7% is better than its peer group average of 16.2%. You can see the complete list of today’s Zacks #1 Rank stocks here. .
Price and Consensus: FIX
AAON: Headquartered in Tulsa, OK, AAON designs, manufactures and sells commercial air conditioning, heating and ventilation equipment across the United States and Canada. The company is benefiting from strong demand across both its traditional HVAC and data-center cooling businesses. AAON continues to gain market share through its highly engineered, customizable solutions, while expanding production capacity across multiple facilities to meet rising customer demand. The data-center thermal management market remains a major growth catalyst, driving robust order activity and a growing backlog. AAON is also benefiting from increased adoption of its heat-pump offerings and improving demand in its transactional rooftop HVAC business. Management expects ongoing investments in manufacturing capacity, supply-chain capabilities and operational efficiency to support higher production throughput, stronger execution and long-term margin expansion, positioning the company for sustained growth.
AAON currently sports a Zacks Rank #1. The stock has surged 56.3% over the past year. AAON has seen an upward estimate revision for 2026 EPS to $2.23 from $2.00 over the past 30 days. The estimated figure indicates 65.2% year-over-year growth in 2026. AAON surpassed earnings estimates in two of the trailing four quarters and missed on the other two, with the average surprise being 6.2%. Again, AAON’s trailing 12-month return on equity is 13.7%.
Price and Consensus: AAON
SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies has been benefiting from strong demand across its HVAC and Detection & Measurement businesses. The company is benefiting from accelerating data center investments, which are driving demand for advanced cooling, air-handling and air-movement solutions. Ongoing capacity expansions are expected to enhance its ability to serve customers and support future growth. Beyond data centers, healthy demand from healthcare, pharmaceuticals, power, industrial and aftermarket markets provides additional momentum. SPX Technologies is also advancing innovative software and utility-location solutions that improve customer efficiency and safety. Furthermore, recent acquisitions, a robust acquisition pipeline and continued new product introductions position the company for sustained organic and inorganic growth in the coming years.
SPX Technologies currently carries a Zacks Rank #2 (Buy). The stock has surged 49.8% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $7.98 from $7.95 over the past 30 days. The estimated figure indicates 18.1% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 9.7%. Again, SPXC’s trailing 12-month return on equity is 17%.
Price and Consensus: SPXC
Tecogen: Based in North Billerica, MA, Tecogen designs, manufactures and services cogeneration and clean energy systems for residential, commercial and industrial customers across the United States. Tecogen’s growth prospects are increasingly tied to rising demand for its dual-power-source chiller technology, which is gaining traction in both data center and non-data-center markets. The company is benefiting from growing concerns around power constraints, grid reliability and the need for uninterrupted cooling, making its hybrid cooling solutions more attractive. Management highlighted expanding engagement with major data center operators, ongoing product demonstrations and a strengthening relationship with Vertiv, which could support broader market adoption. Beyond data centers, demand from healthcare and commercial customers is accelerating as energy and infrastructure challenges intensify. Tecogen is also investing in manufacturing capacity, product development and operational efficiency to support future growth and scalability.
Tecogen currently carries a Zacks Rank #2. The stock has gained 28.2% over the past year. Loss per share estimate for TGEN’s 2026 bottom line has narrowed to 25 cents from 27 cents over the past 30 days. The estimated figure for 2026 indicates a year-over-year improvement from the year-ago loss of 26 cents per share.
Key Takeaways ACGL net premiums earned may rise 2.3% on rate increases, new business growth and stronger underwriting. Underwriting profitability may improve with better pricing, exposure growth & favorable catastrophe backdrop. Mortgage segment weakness and higher expenses may weigh, while share buybacks could support the bottom line. Arch Capital Group Ltd. (ACGL - Free Report) is expected to register an improvement in both top and bottom lines when it reports first-quarter 2026 results on April 28, after the closing bell.
The Zacks Consensus Estimate for ACGL’s first-quarter revenues is pegged at $4.67 billion, indicating 2.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.45 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved south 1.2% in the past 30 days. The estimate suggests a year-over-year rise of 59.1%.
What the Zacks Model Unveils for ACGLOur proven model predicts an earnings beat for Arch Capital this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Arch Capital has an Earnings ESP of +0.63% at present. This is because the Most Accurate Estimate of $2.46 is pegged higher than the Zacks Consensus Estimate of $2.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arch Capital currently carries a Zacks Rank #3.
Factors Likely to Shape Q1 Results of ACGLRate increases, new business opportunities and growth in existing accounts, product innovation, market expansion and strong underwriting performance, combined with strategic investments, are likely to have favored net premiums earned.
The Zacks Consensus Estimate for net premiums earned is pegged at $4.2 billion. We expect net premiums earned to increase 2.3% to $4.3 billion.
The Mortgage segment is likely to have declined due to the lower gross premiums written and expenses related to tender offers of certain Bellemeade Re mortgage insurance-linked notes.
Net investment income is likely to have benefited from solid net cash flow from operating activities, which is expected to have increased the invested asset base. We expect net investment income to be $378.2 million. The Zacks Consensus Estimate for investment income is pegged at $418 million.
The top line is likely to have gained from improved earned premiums and higher net investment income.
Expenses are expected to have increased in the to-be-reported quarter due to higher losses and loss adjustment expenses, acquisition costs, other operating expenses, amortization of intangible assets, corporate expenses and interest expenses. We expect total expenses to be $3.7 billion.
Prudent underwriting, combined with better pricing and increased exposure, is likely to have improved underwriting profitability. A not-so-active catastrophe environment is expected to have added to the upside, leading to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 83, and our estimate is pinned at 83.2.
Share buybacks are likely to have added upside to the bottom line.
Other Stocks to ConsiderHere are three other P&C insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.
AXS’ earnings beat estimates in each of the last four quarters.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $11.07, indicating a year-over-year increase of 842.95%.
RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Arizona State Retirement System lowered its stake in shares of Arch Capital Group Ltd. (NASDAQ:ACGL – Free Report) by 7.8% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 102,264 shares of the insurance provider’s stock after selling 8,673 shares during the quarter. Arizona State Retirement System’s holdings in Arch Capital Group were worth $9,809,000 at the end of the most recent quarter.
Several other large investors have also recently modified their holdings of ACGL. Bridges Investment Management Inc. purchased a new position in shares of Arch Capital Group during the 3rd quarter valued at approximately $1,413,000. Allianz Asset Management GmbH boosted its stake in shares of Arch Capital Group by 12.5% during the 3rd quarter. Allianz Asset Management GmbH now owns 192,567 shares of the insurance provider’s stock valued at $17,472,000 after buying an additional 21,323 shares during the last quarter. High Ground Investment Management LLP boosted its stake in shares of Arch Capital Group by 3.5% during the 3rd quarter. High Ground Investment Management LLP now owns 1,714,668 shares of the insurance provider’s stock valued at $155,572,000 after buying an additional 58,151 shares during the last quarter. WCM Investment Management LLC boosted its stake in shares of Arch Capital Group by 1.3% during the 3rd quarter. WCM Investment Management LLC now owns 13,525,402 shares of the insurance provider’s stock valued at $1,214,987,000 after buying an additional 171,693 shares during the last quarter. Finally, Cooke & Bieler LP purchased a new position in shares of Arch Capital Group during the 3rd quarter valued at approximately $210,856,000. Institutional investors own 89.07% of the company’s stock.
Wall Street Analysts Forecast Growth Several research firms have recently commented on ACGL. Weiss Ratings upgraded Arch Capital Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, February 4th. The Goldman Sachs Group reissued a “sell” rating and set a $93.00 price target (up from $84.00) on shares of Arch Capital Group in a research report on Wednesday, January 7th. Wells Fargo & Company upped their price target on Arch Capital Group from $106.00 to $109.00 and gave the company an “overweight” rating in a research report on Wednesday, February 11th. Evercore set a $100.00 price target on Arch Capital Group and gave the company an “in-line” rating in a research report on Wednesday, January 7th. Finally, Keefe, Bruyette & Woods upped their price target on Arch Capital Group from $104.00 to $105.00 and gave the company a “market perform” rating in a research report on Tuesday, April 7th. Nine analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $108.93.
View Our Latest Stock Analysis on Arch Capital Group
Arch Capital Group Stock Performance ACGL stock opened at $96.19 on Friday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.53 and a current ratio of 0.53. The stock has a market capitalization of $34.27 billion, a price-to-earnings ratio of 8.28, a PEG ratio of 4.88 and a beta of 0.41. Arch Capital Group Ltd. has a 1 year low of $82.44 and a 1 year high of $103.39. The stock’s fifty day moving average is $96.64 and its two-hundred day moving average is $94.15.
Arch Capital Group (NASDAQ:ACGL – Get Free Report) last posted its earnings results on Monday, February 9th. The insurance provider reported $2.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.34 by $0.64. The company had revenue of $4.93 billion for the quarter, compared to analysts’ expectations of $3.94 billion. Arch Capital Group had a return on equity of 16.73% and a net margin of 22.07%.During the same period last year, the business posted $2.26 earnings per share. On average, research analysts predict that Arch Capital Group Ltd. will post 9.34 EPS for the current year.
Insider Buying and Selling In other news, Director Brian S. Posner sold 3,000 shares of the firm’s stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $17.11, for a total transaction of $51,330.00. Following the transaction, the director directly owned 2,000 shares of the company’s stock, valued at approximately $34,220. This trade represents a 60.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Nicolas Papadopoulo sold 21,930 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $96.31, for a total value of $2,112,078.30. Following the transaction, the chief executive officer directly owned 871,594 shares in the company, valued at $83,943,218.14. This trade represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 78,267 shares of company stock valued at $7,291,637. 3.30% of the stock is owned by corporate insiders.
Arch Capital Group Profile (Free Report)
Arch Capital Group Ltd. (NASDAQ: ACGL) is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.
Arch’s product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.
See Also Five stocks we like better than Arch Capital Group
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Several large-cap stocks across tech and financials recently announced massive buyback authorizations.
The world’s largest name in creative software has seen its stock price tank. Its new $25 billion buyback plan suggests it sees significant value in shares. Meanwhile, large but under-covered financial stocks are poised to continue reducing their share counts, providing a tailwind for per-share metrics.
Get Adobe alerts:
Adobe Buyback Capacity Soars to 24% of Its Market CapitalizationThe market has battered shares of software giant Adobe NASDAQ: ADBE over the past year. Overall, the stock is down more than 40% from its 52-week high and is down more than 30% in 2026. Artificial intelligence (AI) disruption fears have been the primary driver of the stock’s decline, with the market questioning the company’s future growth. Specifically, investors see tools like “Claude Design” as competitive threats to Adobe.
Adobe Today
$218.24 -15.14 (-6.49%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$218.09▼
$416.39P/E Ratio12.71
Price Target$297.69
Still, Adobe’s growth is holding up right now, with the company posting revenue increases of between 10% and 12% over the past several quarters. This is generally in line with growth seen in 2023 and 2024.
With shares down significantly, Adobe just announced a massive $25 billion share buyback program. The company notes this program is a “direct expression of confidence” in its cash flow generation and underscores its long-term optimism ahead. This program is equal to a whopping 24% of Adobe’s market capitalization, which has now fallen to around $103 billion.
In relation to company value, buyback programs of this size are rare, especially for huge names like Adobe.
With this, the company is making a statement, likely seeing the drawdown in its share price as overdone. Still, it's unlikely the market will move to reflect Adobe’s view quickly. The firm will need to prove the resilience of its business over time to change this.
Synchrony’s Huge Buyback Authorization Can Lower Share Count Even FurtherOn the other hand, Synchrony Financial NYSE: SYF has performed admirably. The stock has delivered a total return of about 20% since the start of 2025, essentially in line with the S&P 500 Index. The company has become a significant player in the branded credit card space. This involves working with brands to develop their own credit cards, which provide rewards to consumers.
Synchrony Financial Today
SYF
Synchrony Financial
$72.46 +2.90 (+4.16%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$59.46▼
$88.77Dividend Yield1.66%
P/E Ratio7.49
Price Target$86.05
Notably, Synchrony’s purchase volume hit $43 billion in Q1 2026, a first-quarter record for the company. The credit quality of consumers who use Synchrony’s cards is also improving. Net charge-offs, or the percentage of the company’s loans that it will not recover, fell by nearly 100 basis points to 5.42%. This is the fourth quarter in a row of net charge-off improvement, showing that consumers continue to pay off a greater percentage of their loans.
Synchrony has also returned capital to shareholders at a prolific pace. Overall, the firm has spent $25.2 billion on buybacks and dividends since 2016. This has allowed the firm to lower its outstanding share count by nearly 60%. The company is strongly indicating that this trend will continue, recently announcing a $6.5 billion buyback program. This is equal to just under 25% of its approximately $26 billion market capitalization.
Arch Capital: Unique Insurance Provider Boosts Authorization to $3.1 BillionLast up is Arch Capital NASDAQ: ACGL. Shares have delivered a modest return near 5% since the start of 2025 and are essentially flat in 2026. The firm provides specialty insurance, reinsurance, and mortgage insurance. Specialty insurance focuses on providing coverage outside of common areas, such as life, home, or cars. Examples may include medical malpractice insurance or customized insurance for unique situations.
Arch Capital Group Today
ACGL
Arch Capital Group
$91.13 -0.18 (-0.20%)
As of 06/11/2026 04:00 PM Eastern
52-Week Range$82.44▼
$103.39P/E Ratio7.00
Price Target$106.81
Because fewer insurance companies compete in these markets, Arch can potentially generate higher margins by offering coverage. Their value proposition rests on being able to underwrite these unique risks well, capturing demand in less-competitive areas of the market.
The firm put up some impressive metrics in its latest quarter, with after-tax operating income rising by 26% to $1.1 billion. Its full-year 2025 after-tax operating income of $3.7 billion was a record high.
The company also spent $1.9 billion on buybacks in 2025, a significant figure compared to its market capitalization near $34 billion. Now, the company has added more firepower to its buyback chest, increasing its authorization to $3.1 billion. This is equal to around 9% of the company’s market capitalization. Although not as massive as that of Adobe and Synchrony, this program is still very large compared to most authorizations. It gives the firm substantial ability to continue lowering its outstanding share count, which has fallen approximately 5% over the past year.
Adobe: Analysts Remain Optimistic, But Targets Are Moving in the Wrong DirectionAmong this group, Adobe is the most interesting name going forward and may be one of the more intriguing stocks in the market. The company has long been a dominant force in creative design software. If the firm can prove that AI disruption fears are overblown, there could be significant value in Adobe stock.
Wall Street analysts have a generally positive outlook. The MarketBeat consensus price target near $340 implies more than 40% upside in shares. However, targets fell meaningfully after the company’s last earnings report. Updated targets average approximately $322.
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MIAMI, April 27, 2026 (GLOBE NEWSWIRE) -- Arch Capital Management (“Arch”), a new working capital and asset-based lending platform, today announced its official launch, expanding the team’s commitment to helping growth-oriented businesses access practical, flexible credit solutions. Built by the operators behind Cirrus Capital Partners, Arch was created to meet a growing need in the market: dependable revolving facilities that help companies convert assets, invoices, and purchase orders into usable liquidity.
Its parent, Cirrus Capital Partners, has established itself as a debt capital markets advisor for SMBs, scaleups, and lower-middle market companies, facilitating credit across SaaS, CPG, B2B services, construction, logistics, manufacturing, and other sectors. The Cirrus platform highlights more than $1.3 billion in successful transactions across its team and a broad network of 500+ credit investors. Arch represents a natural extension of that experience, shifting from advisory placement to a direct, relationship-driven capital solution for companies that need working capital they can actually use.
Arch will focus initially on accounts receivable financing, factoring facilities, and asset-based lending facilities for B2B businesses with commercial receivables or tangible operating assets. The firm is designed for companies that are growing, fulfilling larger orders, managing uneven cash conversion cycles, or seeking a more responsive alternative to conventional bank financing.
“Arch was built around a simple idea: strong businesses should not be held back by timing gaps between orders, invoices, collections, and inventory,” said Ryan Ridgway, Co-Founder of Arch Capital Management. “Through Cirrus, we have seen firsthand how many companies are fundamentally healthy but constrained by working capital. Arch gives us a platform to step in directly with structured, practical credit products that support growth without forcing founders or owners to give up equity.”
Unlike long-form term debt that may not match day-to-day operating needs, Arch’s revolving facilities are intended to scale alongside collateral and business activity. By advancing against eligible receivables and other business assets, Arch seeks to help companies reduce cash flow friction, fund fulfillment, manage seasonality, and pursue new customer demand with greater confidence.
The launch comes as founders, operators, and finance leaders continue to evaluate alternatives to dilution, rigid bank underwriting, and fragmented private credit options. Arch aims to bring a more thoughtful and commercially fluent approach to factoring and ABL facilities, combining credit discipline with an operator-first understanding of how growing businesses actually move cash through their supply chains.
“From potential, to growth. Together.” will serve as Arch’s guiding philosophy. The firm intends to work closely with borrowers, referral partners, and institutional capital relationships to design financing structures that are clear, scalable, and aligned with real business objectives.
Arch Capital Management is now actively reviewing opportunities across business services, consumer products, food and beverage, logistics, wholesale, manufacturing, construction, staffing, and other B2B sectors where working capital, invoice factoring, factoring facilities, and asset-based lending can create meaningful operating leverage.
About Arch Capital Management
Arch Capital Management is a working capital and asset-based lending platform providing flexible credit solutions to growing B2B companies. Arch focuses on accounts receivable financing, invoice factoring, and ABL facilities designed to help companies manage cash flow, fund growth, and convert business assets into scalable liquidity. Website: https://arch.inc
About Cirrus Capital Partners
Cirrus Capital Partners is a debt capital markets advisor helping companies access non-dilutive capital across a broad range of industries and financing products. Through a tech-enabled platform and extensive credit investor network, Cirrus supports founders, operators, and finance teams seeking tailored capital solutions with speed, clarity, and optionality.
Website: https://www.cirruscap.com/
Contact
Co-Founder, Managing Partner
Ryan Ridgway
Arch Capital Management d/b/a Arch [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ec57d467-5616-4019-acb4-1d27e3bbefec.
PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:
Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter. After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million. Favorable development in prior year loss reserves, net of related adjustments, of $200 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter. Share repurchases of $783 million. Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025. “We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”
All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:
(U.S. Dollars in millions)
Three Months Ended March 31,
2026
2025
% Change
Gross premiums written
$
6,425
$
6,463
(0.6)
Net premiums written
4,348
4,515
(3.7)
Net premiums earned
3,986
4,188
(4.8)
Underwriting income (1)
728
417
74.6
Underwriting Ratios
% Point Change
Loss ratio
52.4%
61.8%
(9.4)
Underwriting expense ratio (2)
29.3%
28.3%
1.0
Combined ratio
81.7%
90.1%
(8.4)
Combined ratio excluding catastrophic activity and prior year development (1)
82.3%
81.0%
1.3
The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):
(U.S. Dollars in millions, except per share data)
Three Months Ended
March 31,
2026
2025
Net income available to Arch common shareholders
$
1,037
$
564
Net realized (gains) losses (1)
87
(3)
Equity in net (income) of investments accounted for using the equity method
(160)
(53)
Net foreign exchange (gains) losses
(21)
27
Transaction costs and other
18
10
Income tax expense (benefit) (2)
(60)
42
After-tax operating income available to Arch common shareholders
$
901
$
587
Diluted per common share results:
Net income available to Arch common shareholders
$
2.88
$
1.48
Net realized (gains) losses (1)
0.24
(0.01)
Equity in net (income) of investments accounted for using the equity method
(0.44)
(0.14)
Net foreign exchange (gains) losses
(0.06)
0.07
Transaction costs and other
0.05
0.03
Income tax expense (benefit) (2)
(0.17)
0.11
After-tax operating income available to Arch common shareholders
$
2.50
$
1.54
Weighted average common shares and common share equivalents outstanding — diluted
359.7
381.9
Beginning common shareholders’ equity
$
23,376
$
19,990
Ending common shareholders’ equity
23,358
20,715
Average common shareholders’ equity
$
23,367
$
20,353
Annualized net income return on average common equity
17.8%
11.1%
Annualized operating return on average common equity
15.4%
11.5%
Segment Information
The following section provides analysis on the Company’s 2026 first quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated March 31, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).
Insurance Segment
Three Months Ended March 31,
(U.S. Dollars in millions)
2026
2025
% Change
Gross premiums written
$
2,697
$
2,645
2.0
Net premiums written
1,906
1,933
(1.4)
Net premiums earned
1,871
1,860
0.6
Other underwriting income
11
3
266.7
Underwriting income
$
66
$
(2)
3,400.0
Underwriting Ratios
% Point Change
Loss ratio
60.2%
66.0%
(5.8)
Underwriting expense ratio
36.3%
34.1%
2.2
Combined ratio
96.5%
100.1%
(3.6)
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums
4.2%
9.5%
(5.3)
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact
(0.7)%
(0.9)%
0.2
Underwriting expense ratio impact
0.3%
0.4%
(0.1)
Total impact
(0.4)%
(0.5)%
0.1
Combined ratio excluding catastrophic activity and prior year development
92.7%
91.1%
1.6
Gross premiums written by the insurance segment in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, while net premiums written were 1.4% lower than in the 2025 first quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 1.1% compared to the same quarter one year ago. Net premiums earned in the 2026 first quarter were 0.6% higher than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.
The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 first quarter, compared to 0.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.
The underwriting expense ratio was 36.3% in the 2026 first quarter, compared to 34.1% in the 2025 first quarter. In the 2025 first quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 1.9 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. The 2026 first quarter also included higher compensation costs compared to the 2025 first quarter and transitional expenses associated with the MCE Acquisition.
Reinsurance Segment
Three Months Ended March 31,
(U.S. Dollars in millions)
2026
2025
% Change
Gross premiums written
$
3,414
$
3,494
(2.3)
Net premiums written
2,176
2,316
(6.0)
Net premiums earned
1,831
2,028
(9.7)
Other underwriting income
37
39
(5.1)
Underwriting income
$
441
$
167
164.1
Underwriting Ratios
% Point Change
Loss ratio
51.7%
66.9%
(15.2)
Underwriting expense ratio
24.2%
24.9%
(0.7)
Combined ratio
75.9%
91.8%
(15.9)
Catastrophic activity and prior year development:
Current accident year catastrophic events, net of reinsurance and reinstatement premiums
5.2%
18.3%
(13.1)
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact
(8.3)%
(5.9)%
(2.4)
Underwriting expense ratio impact
0.9%
1.4%
(0.5)
Total impact
(7.4)%
(4.5)%
(2.9)
Combined ratio excluding catastrophic activity and prior year development
78.1%
78.0%
0.1
Gross premiums written by the reinsurance segment in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, while net premiums written were 6.0% lower than in the 2025 first quarter. The lower level of net premiums written this quarter was primarily due to a reduction in property catastrophe business written at January 1, amplified by a lower level of reinstatement premiums relative to the 2025 first quarter, which included reinstatement premiums related to the California wildfires. Net premiums earned in the 2026 first quarter were 9.7% lower than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.
The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 8.3 points in the 2026 first quarter, compared to 5.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.
The underwriting expense ratio was 24.2% in the 2026 first quarter, compared to 24.9% in the 2025 first quarter. The 2025 first quarter amount included a lower level of contingent commissions on ceded business, primarily due to the impact of the California wildfires.
Mortgage Segment
Three Months Ended March 31,
(U.S. Dollars in millions)
2026
2025
% Change
Gross premiums written
$
316
$
326
(3.1)
Net premiums written
266
266
—
Net premiums earned
284
300
(5.3)
Other underwriting income
11
11
—
Underwriting income
$
221
$
252
(12.3)
Underwriting Ratios
% Point Change
Loss ratio
5.3%
1.1%
4.2
Underwriting expense ratio
17.0%
15.0%
2.0
Combined ratio
22.3%
16.1%
6.2
Prior year development:
Net (favorable) adverse development in prior year loss reserves, net of related adjustments
Loss ratio impact
(19.2)%
(20.4)%
1.2
Underwriting expense ratio impact
(0.7)%
(1.4)%
0.7
Total impact
(19.9)%
(21.8)%
1.9
Combined ratio excluding prior year development
42.2%
37.9%
4.3
Gross premiums written by the mortgage segment in the 2026 first quarter were 3.1% lower than in the 2025 first quarter, driven by lower U.S. monthly premium business. Net premiums written were flat compared to the 2025 first quarter, reflecting lower cessions on U.S. primary business.
Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.2 points, compared to 20.4 points in the 2025 first quarter. Such amounts were primarily related to better than expected cure rates. The 2026 first quarter loss ratio reflected a modestly higher level of delinquencies than in the 2025 first quarter.
The underwriting expense ratio was 17.0% in the 2026 first quarter, compared to 15.0% in the 2025 first quarter. The increase was primarily due to higher gross acquisition expenses and lower ceding and profit commissions on U.S. primary business. The 2026 first quarter ratio also reflected the impact of a lower level of net premiums earned.
Corporate
The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.
Investment returns were as follows:
(U.S. Dollars in millions, except per share data)
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
Pre-tax net investment income
$
408
$
434
$
378
Per share
$
1.13
$
1.18
$
0.99
Equity in net income of investments accounted for using the equity method
$
160
$
155
$
53
Per share
$
0.44
$
0.42
$
0.14
Pre-tax investment income yield, at amortized cost (1)
3.99%
4.22%
4.16%
Total return on investments (2)
0.10%
1.36%
2.02%
Net investment income for the 2026 first quarter, compared to the 2025 first quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $87 million for the 2026 first quarter, compared to net realized gains of $3 million in the 2025 first quarter, and were primarily the result of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.
Corporate expenses for the 2026 first quarter were $31 million, compared to $50 million for the 2025 first quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 first quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.
Amortization of intangible assets was $30 million for the 2026 first quarter, compared to $49 million for the 2025 first quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition.
On a pre-tax basis, net foreign exchange gains were $21 million for the 2026 first quarter, compared to net foreign exchange losses of $27 million for the 2025 first quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.
The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 8.6% for the 2026 first quarter, compared to 17.4% for the 2025 first quarter. The decrease in the effective tax rate was primarily driven by tax law changes in Bermuda and the United Kingdom. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 14.8% for the 2026 first quarter, compared to 11.7% for the 2025 first quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.
Income from operating affiliates for the 2026 first quarter was $36 million, or $0.10 per share, compared to $17 million, or $0.04 per share, for the 2025 first quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.
Conference Call
The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on April 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.
Please refer to the Company’s Financial Supplement dated March 31, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.
Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.
Comments on Non-GAAP Financial Measures
Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance.
This presentation includes the use of “after-tax operating income or loss available to Arch common shareholders,” which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.
The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.
The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.
Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.
The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.
The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.
Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.
In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’
Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.
The following tables summarize the Company’s results by segment for the 2026 first quarter and 2025 first quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:
(U.S. Dollars in millions)
Three Months Ended
March 31, 2026
Insurance
Reinsurance
Mortgage
Total
Gross premiums written (1)
$
2,697
$
3,414
$
316
$
6,425
Premiums ceded (1)
(791)
(1,238)
(50)
(2,077)
Net premiums written
1,906
2,176
266
4,348
Change in unearned premiums
(35)
(345)
18
(362)
Net premiums earned
1,871
1,831
284
3,986
Other underwriting income (2)
11
37
11
59
Losses and loss adjustment expenses
(1,126)
(948)
(15)
(2,089)
Acquisition expenses
(375)
(347)
(8)
(730)
Other operating expenses
(315)
(132)
(51)
(498)
Underwriting income (loss)
$
66
$
441
$
221
728
Net investment income
408
Net realized gains (losses)
(87)
Equity in net income of investments accounted for using the equity method
160
Other income (loss)
(5)
Corporate benefit (expenses) (3)
(31)
Transaction costs and other (3)
(18)
Amortization of intangible assets
(30)
Interest expense
(37)
Net foreign exchange gains (losses)
21
Income (loss) before income taxes and income (loss) from operating affiliates
1,109
Income tax benefit (expense)
(98)
Income (loss) from operating affiliates
36
Net income (loss) available to Arch
1,047
Preferred dividends
(10)
Net income (loss) available to Arch common shareholders
$
1,037
Underwriting Ratios
Loss ratio
60.2%
51.7%
5.3%
52.4%
Acquisition expense ratio
20.0%
19.0%
2.9%
18.3%
Other operating expense ratio (4)
16.3%
5.2%
14.1%
11.0%
Combined ratio
96.5%
75.9%
22.3%
81.7%
Net premiums written to gross premiums written
70.7%
63.7%
84.2%
67.7%
(1)
Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)
‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)
Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)
The ‘Other operating expense ratio’ includes ‘Other underwriting income.’
(U.S. Dollars in millions)
Three Months Ended
March 31, 2025
Insurance
Reinsurance
Mortgage
Total
Gross premiums written (1)
$
2,645
$
3,494
$
326
$
6,463
Premiums ceded (1)
(712)
(1,178)
(60)
(1,948)
Net premiums written
1,933
2,316
266
4,515
Change in unearned premiums
(73)
(288)
34
(327)
Net premiums earned
1,860
2,028
300
4,188
Other underwriting income (2)
3
39
11
53
Losses and loss adjustment expenses
(1,228)
(1,356)
(3)
(2,587)
Acquisition expenses
(343)
(417)
(4)
(764)
Other operating expenses
(294)
(127)
(52)
(473)
Underwriting income (loss)
$
(2)
$
167
$
252
417
Net investment income
378
Net realized gains (losses)
3
Equity in net income of investments accounted for using the equity method
53
Other income (loss)
(2)
Corporate benefit (expenses) (3)
(50)
Transaction costs and other (3)
(10)
Amortization of intangible assets
(49)
Interest expense
(35)
Net foreign exchange gains (losses)
(27)
Income (loss) before income taxes and income (loss) from operating affiliates
678
Income tax benefit (expense)
(121)
Income (loss) from operating affiliates
17
Net income (loss) available to Arch
574
Preferred dividends
(10)
Net income (loss) available to Arch common shareholders
$
564
Underwriting Ratios
Loss ratio
66.0%
66.9%
1.1%
61.8%
Acquisition expense ratio
18.5%
20.6%
1.3%
18.3%
Other operating expense ratio (4)
15.6%
4.3%
13.7%
10.0%
Combined ratio
100.1%
91.8%
16.1%
90.1%
Net premiums written to gross premiums written
73.1%
66.3%
81.6%
69.9%
(1)
Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.
(2)
‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.
(3)
Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.
(4)
The ‘Other operating expense ratio’ includes ‘Other underwriting income.’
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.
Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”), and include:
the Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets; acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds; the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations; the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein; general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates; competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors; developments in the world’s financial and capital markets and the Company’s access to such markets; the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business; the loss and addition of key personnel; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting; greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries; the adequacy of the Company’s loss reserves; severity and/or frequency of losses; greater frequency or severity of unpredictable natural and man-made catastrophic events; claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations; availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance; the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company; the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company; the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments; changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; the effect of climate change on the Company’s business; the effect of contagious diseases or a pandemic on the Company’s business; acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans; the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies; changes in accounting principles or policies or in the Company’s application of such accounting principles or policies; changes in the political environment of certain countries in which the Company operate or underwrite business; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Arch Capital Group (ACGL - Free Report) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.45 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.16%. A quarter ago, it was expected that this property and casualty insurer would post earnings of $2.49 per share when it actually produced earnings of $2.98, delivering a surprise of +19.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Arch Capital, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $4.39 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 6.11%. This compares to year-ago revenues of $4.56 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.
Arch Capital shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Arch Capital?While Arch Capital 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 Arch Capital 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 $2.44 on $4.69 billion in revenues for the coming quarter and $9.34 on $18.71 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, Insurance - Property and Casualty is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
NMI Holdings (NMIH - 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 30.
This mortgage insurance company is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -4.7%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
NMI Holdings' revenues are expected to be $182.83 million, up 5.5% from the year-ago quarter.
Arch Capital Group (ACGL - Free Report) reported $4.39 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 3.8%. EPS of $2.50 for the same period compares to $1.54 a year ago.
The reported revenue represents a surprise of -6.11% over the Zacks Consensus Estimate of $4.67 billion. With the consensus EPS estimate being $2.45, the EPS surprise was +2.16%.
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.
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 Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio - Total: 81.7% versus 83.1% estimated by four analysts on average.Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment: 14.1% versus the four-analyst average estimate of 16.2%.Loss Ratio - Total: 52.4% compared to the 54.5% average estimate based on four analysts.Expense Ratio - Total Acquisition Expense Ratio: 18.3% compared to the 18.4% average estimate based on four analysts.Revenues- Other income (loss): $-5 million compared to the $9 million average estimate based on four analysts. The reported number represents a change of +150% year over year.Revenues- Net investment income: $408 million versus the four-analyst average estimate of $417.66 million. The reported number represents a year-over-year change of +7.9%.Revenues- Net premiums earned- Reinsurance Segment: $1.83 billion compared to the $1.98 billion average estimate based on four analysts. The reported number represents a change of -9.7% year over year.Revenues- Net premiums earned- Insurance Segment: $1.87 billion compared to the $1.97 billion average estimate based on four analysts. The reported number represents a change of +0.6% year over year.Revenues- Net premiums earned: $3.99 billion versus the four-analyst average estimate of $4.24 billion. The reported number represents a year-over-year change of -4.8%.Revenues- Other underwriting income (loss): $59 million versus $39.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Revenues- Net premiums earned- Mortgage Segment: $284 million versus the four-analyst average estimate of $288.77 million. The reported number represents a year-over-year change of -5.3%.Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $160 million versus $92.39 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +201.9% change.View all Key Company Metrics for Arch Capital here>>>
Shares of Arch Capital have returned +0.8% over the past month versus the Zacks S&P 500 composite's +12.8% 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.
