Track market-moving stories before they get noisy

Electric utilities don't typically raise long-term demand forecasts by one-third unless something meaningful has changed. Yet that's exactly what NextEra Energy (NEE -0.28%) did earlier this year when it increased its forecast for large-load demand at Florida Power & Light (FPL) from 6 gigawatts to 8 gigawatts by 2032.

Interestingly, the primary driver here isn't population growth or new housing developments. It's hyperscale data centers and other large industrial customers that need enormous amounts of reliable electricity.

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So many gigawatts Artificial intelligence has created an unprecedented race among hyperscalers to secure power for massive data centers. And those facilities can consume hundreds of megawatts, with the largest campuses eventually requiring more than a gigawatt of capacity. Utilities capable of delivering power quickly and at competitive rates are becoming strategic partners in that build-out, and NextEra believes it's well positioned to benefit.

Management said it now has approximately 21 gigawatts of large-load interest at FPL, with 12 gigawatts already in advanced discussions. A portion of those projects could begin taking service as early as 2028, and the company expects to announce at least one major large-load agreement before the end of this year.

The economics are significant Management estimates that every gigawatt of new large-load demand represents roughly $2 billion in new infrastructure investment. Those projects become part of FPL's regulated business, allowing the company to earn its authorized 10.95% return on equity.

If NextEra ultimately serves the full 8 gigawatts it now expects by 2032, that would translate into roughly $16 billion of new infrastructure investment. Using FPL's authorized capital structure and 10.95% allowed return on equity, those projects could ultimately support more than $1 billion in annual pretax earnings for shareholders once they're fully built and earning regulated returns.

Image source: The Motley Fool.

Checking all the boxes To be sure, NextEra isn't pursuing growth at the expense of existing customers. As part of FPL's new four-year rate agreement, the company created a large-load tariff designed to ensure that hyperscalers and other large customers pay the cost of the infrastructure required to serve them rather than shifting those costs onto residential and business customers. That reduces one of the biggest concerns surrounding data center-driven electricity demand: who ultimately pays for the new transmission lines, substations, and generation capacity.

Worth noting: This extends far beyond just one utility. Electricity demand in the United States is accelerating after years of relatively flat growth. Utilities with available land, a constructive regulatory environment, and the ability to deliver reliable power quickly are likely to capture an outsize share of that investment. NextEra checks all three boxes.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.

Key Takeaways Amgen's Q2 sales and earnings estimates are $9.45 billion and $5.60 per share, respectively.AMGN may see volume-driven growth from key drugs, offset by pricing pressure and patent-related declines.Amgen investors will watch MariTide pipeline updates and trends in biosimilars and legacy product sales. We expect Amgen (AMGN - Free Report) to beat expectations when it reports second-quarter 2026 results on Aug. 4 after market close. In the last reported quarter, the company's earnings beat expectations by 8.88%. The Zacks Consensus Estimate for second-quarter sales and earnings is pegged at $9.45 billion and $5.60 per share, respectively.

Factors to Consider for AmgenIn the second quarter, Amgen’s product sales are expected to have been driven by strong volume growth of products like Repatha, Tezspire, Uplizna and Evenity, among others. However, price declines for some products and increases in 340B program utilization are likely to have offset some of the gains from volume increases.

The Zacks Consensus Estimate for Repatha, Tezspire, Uplizna and Evenity sales is pegged at $907.0 million, $483.0 million, $306 million and $636.0 million, respectively.

Sales of key drugs, Prolia and Xgeva, are likely to have declined as they have lost patent exclusivity.

Patents for Prolia and Xgeva expired in February 2025 in the United States, while the same expired in some European countries in November 2025. The erosion in their sales was in line with expectations in the first quarter. Accelerated sales erosion is expected over the remainder of 2026 as several biosimilars have been launched globally. The Zacks Consensus Estimate for Prolia and Xgeva is pegged at $728.0 million and $356.0 million, respectively.

Sales of some other drugs like Kyprolis, Vectibix, Nplate and Lumakras/Lumykras are likely to have risen in the quarter. Sales of new cancer drug Imdelltra (tarlatamab) are likely to have risen sequentially, driven by volume growth. The drug was approved by the name of Imdylltra in the EU in June.

In Amgen’s inflammation portfolio, Enbrel sales are likely to have declined due to declining prices. Otezla sales are likely to have been hurt by lower pricing in the United States and generic erosion in the EU.

The Zacks Consensus Estimate for Otezla is $562.0 million, while that for Enbrel is $466.0 million.

Amgen’s new biosimilar products like a biosimilar version of J&J’s Stelara called Wezlana and Regeneron’s (REGN - Free Report) Eylea called Pavblu are also likely to have contributed to sales growth like the past few quarters.  Wezlana’s sales are expected mostly from ex-U.S. markets while Pavblu’s sales are expected to have risen sequentially, driven by volume growth.

Lower revenues from oncology biosimilars (Kanjinti and Mvasi) due to increased competitive pressure are expected to have hurt the top line. Sales of legacy established products are also expected to have declined.

In the second quarter, adjusted operating margin is expected to be in line with the first-quarter operating margin of 45.3%.

Investors will look for updates on Amgen’s important pipeline candidate, MariTide (maridebart cafraglutide), a GIPR/GLP-1 receptor for obesity, on the second-quarter conference call.

AMGN’s Earnings Surprise HistoryThis large biotech’s performance has been strong, with earnings beating estimates in the trailing four quarters. The company delivered a four-quarter earnings surprise of 11.82%, on average.

Amgen’s stock has risen 18.4% so far this year compared with an increase of 2.8% for the industry.

Image Source: Zacks Investment Research

What Our Model Says for AMGNOur proven model predicts an earnings beat for Amgen this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.

Earnings ESP: Amgen’s Earnings ESP is +0.70%. The Zacks Consensus Estimate is pegged at $5.60 per share, while the Most Accurate Estimate is pegged higher at $5.64 per share. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Zacks Rank: Amgen has a Zacks Rank #3.

Other Stocks to ConsiderHere are two drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:

Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jazz stock has risen 52% so far this year. JAZZ beat estimates in three of the last four quarters while missing in one. The company has a four-quarter earnings surprise of 10.73%, on average. Jazz is scheduled to report second-quarter results on Aug. 3.

Pfizer (PFE - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.

Shares of Pfizer have risen 0.1% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 21.93%. Pfizer is scheduled to report second-quarter results on Aug. 4.

Key Takeaways GLW posted 17% revenue growth and 30% earnings growth, extending its multi-quarter momentum.GLW trades at 46.6X forward earnings after a 113.8% one-year rally, limiting room for missteps.Operating cash flow rose to $1.72B, while Solar lost $7M amid $30M of ramp-related costs. Corning Incorporated (GLW - Free Report) has become a clearer AI infrastructure story after another stronger-than-expected quarter. Growth in optical communications, improving cash flow and higher estimates support the bull case.

The harder question is valuation. GLW has already rallied sharply over the past year, leaving less room for missteps as the company ramps optical and solar capacity.

GLW’s Earnings Momentum Strengthens the Bull CaseCorning reported second-quarter 2026 core revenues of $4.74 billion, up 17% year over year, while core earnings rose 30% to 78 cents per share. Both figures topped the Zacks Consensus Estimate, with sales and earnings surprises of 2.9% and 2.6%, respectively.

The company has delivered at least eight consecutive quarters of year-over-year growth.

Management expects third-quarter core sales of $4.9 billion to $5 billion and core EPS of 85-89 cents, while the current fiscal-year earnings estimate has moved 1.7% higher over the past four weeks.

Corning’s Valuation Limits the Margin for ErrorThe stock’s premium is visible across several valuation measures. GLW trades at about 46.6X forward earnings, 6.9X trailing sales and 9.4X trailing book value, levels that already assume continued execution.

That matters after a major share-price move. GLW advanced 113.8% over the past year, although the stock fell 25.9% in the past three months. The pullback improves the entry debate, but it does not make the valuation inexpensive.

GLW’s Cash Flow and Margins Improve the QualityCash generation gives the growth story more support. Corning produced $1.72 billion in operating cash flow in the second quarter, up from $708 million a year earlier, and adjusted free cash flow reached $1.42 billion.

Margins also improved. Core operating margin expanded 190 basis points to 20.9%, while return on invested capital increased 180 basis points to 14.9%. Those gains matter as Corning funds capacity investments tied to Optical Communications and other growth platforms.

Corning’s Risks Keep the Setup From Looking EasyAI demand creates opportunity, but it also raises customer concentration risk. Contract liabilities totaled $2.7 billion and included a $1 billion customer deposit tied to a long-term AI infrastructure supply agreement, improving visibility while increasing delivery and timing pressure.

Other risks remain. Consumer electronics and automotive demand can be cyclical, China-related tariffs and supply-chain uncertainty could pressure margins, and the Solar segment posted a $7 million quarterly loss as maintenance, equipment upgrades and a power transition added about $30 million in costs.

GLW’s Price Target Frames a Measured Upside CaseThe $160 price target compares with the referenced share price of $135.22. That points to potential upside, but not enough to ignore valuation risk.

For that upside case to hold, Corning needs to keep converting AI optical demand into profitable growth and show that Solar can improve beginning in the third quarter. Continued margin expansion is central to justifying the stock’s premium.

Corning’s Scores Point to Selective OptimismGLW currently carries a Zacks Rank #3 (Hold), which supports a balanced stance rather than an aggressively bullish one. NVIDIA Corporation (NVDA - Free Report) remains a relevant comparison because its AI infrastructure ecosystem is tied to demand for high-speed optical connectivity. Meta Platforms (META - Free Report) is also relevant because its AI data-center ambitions directly align with Corning’s hyperscale optical opportunity.

The Momentum Score of A and Growth Score of B reflect stronger operating trends, while the Value Score of D shows limited valuation support. The VGM Score of B leaves GLW better suited to growth-oriented investors willing to underwrite execution risk than to deep-value buyers seeking a discounted stock.

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

Key Takeaways Dell benefits from enterprise PC refreshes, with one-third of installed devices at least four years old. AI-enabled commercial PCs and higher peripheral attach rates are supporting CSG growth and profitability. Memory shortages through 2027 may raise costs and push CSG operating margins toward roughly 6%. Dell Technologies’ (DELL - Free Report) Client Solutions Group (“CSG”) is benefiting from sustained commercial demand. Large enterprise customers continue to refresh aging PC fleets across all regions, while roughly one-third of the installed base still consists of devices that are four years or older, leaving meaningful room for additional upgrades. Commercial customers continue to represent the primary growth engine for CSG. Strong enterprise demand, higher attach rates for peripherals and improved scale helped lift CSG operating income 79% year over year, while profitability benefited from a richer commercial mix and improving consumer margins.

DELL highlighted continued innovation across its PC portfolio, including Dell Pro Max AI desktops supporting NVIDIA GB10 and GB300 platforms. Dell is positioning AI-enabled commercial PCs as part of its end-to-end AI strategy, enabling enterprises to run AI workloads locally while keeping sensitive data on-premises. These capabilities are expected to support premium PC demand over the coming quarters.

Although enterprise remains the key driver, Dell reported a third consecutive quarter of demand growth in consumer revenues, aided by ongoing strength in gaming systems. This provides incremental support to overall CSG revenues while diversifying growth beyond commercial PCs.

However, CSG is expected to suffer from a global memory shortage that is expected to continue through the end of 2027. This is likely to force PC vendors like Dell, Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) to contend with rising DRAM and NAND prices, limited system configurations and tighter product availability. IDC now forecasts global PC shipments to decline 11.3% in 2026, with conditions expected to worsen during the second half as memory shortages intensify. DELL expects CSG operating margins to moderate to roughly 6% in the upcoming quarter as the company balances customer demand, competitive pricing, market-share gains and profitability.

DELL Faces Tough Competition in PCDell is facing significant competition from the likes of HP and Lenovo in the PC space.

Lenovo is intensifying competition with Dell by strengthening its leadership in premium PCs, commercial devices and AI-enabled systems while consistently outgrowing the broader PC market. In the fourth quarter of fiscal 2026, Lenovo reported 26% year-over-year growth in PC revenues and achieved a record 24.4% global PC market share. Lenovo is also differentiating itself through AI PCs, premiumization and supply-chain execution. The company’s AI strategy includes the rollout of the QIRA personal AI assistant across PCs, tablets and smartphones and new AI-focused commercial desktops, such as the ThinkCentre Neo 50q.

HP remains a key challenger to Dell by leveraging strong momentum in its Personal Systems business, particularly in commercial PCs and premium AI-enabled devices. During the second quarter of fiscal 2026, Personal Systems revenues increased 13% year over year, with commercial revenues rising 14% and consumer revenues up 10%. HP highlighted continued share gains in premium PC categories, strong growth in AI PCs, Advanced Compute Solutions and Workforce Solutions, as well as higher-value unit placements that supported profitability. These initiatives directly compete with Dell's strategy of expanding its premium commercial PC portfolio. HP is further challenging Dell through its AI-at-the-edge strategy and expanding software ecosystem.

DELL’s Share Price Performance, Valuation & EstimatesDell’s shares have appreciated 221.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 6.9%.

DELL Stock Outperforms Sector
Image Source: Zacks Investment Research

The stock is trading at a premium, with a forward 12-month price/earnings of 19.49X compared with HP’s 9.13X and Lenovo’s 14.98X. Dell has a Value Score of C.

Valuation - DELL vs. HPQ
Image Source: Zacks Investment Research

Valuation - DELL vs. LNVGY
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 earnings is currently pegged at $18.80 per share, up 3 cents over the past 30 days, suggesting 82.52% growth from fiscal 2026’s reported figure.
 

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

Key Takeaways UNH stands out with diversified growth drivers, improving Optum margins and AI-led efficiency gains.UNH benefits from value-based care expansion, operational reforms and favorable earnings estimate revisions.Centene remains supported by Medicaid strength, but lower capital efficiency tempers its investment appeal. Rising healthcare utilization, evolving reimbursement policies and ongoing changes in government-sponsored healthcare programs continue to shape the outlook for U.S. managed care organizations. As insurers balance membership growth with medical cost pressures, investors are closely assessing business resilience, margin stability and long-term earnings potential.

UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) are two leading managed care companies with meaningful exposure to Medicare and Medicaid, making them closely watched peers in the sector. While both operate within the same industry, their business mix, scale and strategic priorities differ, offering distinct approaches to navigating regulatory changes and growth opportunities. UnitedHealth benefits from a diversified healthcare platform, providing multiple revenue streams and broader earnings support. Centene, by contrast, remains more focused on government-sponsored healthcare programs, with Medicaid serving as its primary growth driver and a greater reliance on efficient cost management and contract execution.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for UnitedHealthUnitedHealth's biggest competitive strength lies in its diversified healthcare platform, where its insurance business, UnitedHealthcare, is complemented by Optum's health services operations. In the second quarter of 2026, the company’s total revenues rose 0.4% year over year. Meanwhile, Medicare performance improved during the second quarter through pricing discipline, benefit design and care management initiatives. OptumHealth continued to regain momentum with its integrated value-based care model.

Optum remains a key long-term growth engine. It delivered stronger profitability, with its operating margin improving 160 basis points year over year, demonstrating improving operational efficiency across the platform. The business now supports more than 120 million consumers and continues to expand value-based care through primary care, ambulatory surgery and home health services. Clinical initiatives have already reduced hospitalizations by about 10% in the Western and Southern regions, while home health pilots improved timely care delivery by more than 20%. Rural care programs now reach nearly 90% of U.S. counties and are scheduled for broader rollout by the end of 2026.

Technology and AI are becoming increasingly embedded across UNH's operations. AI-based ambient listening tools are already available to roughly 70% of employed providers and are expected to exceed 90% by year-end. The company is also deploying AI across coding, care coordination, customer service and clinical decision support, helping reduce administrative work while improving patient access and provider efficiency.

UnitedHealth is also reshaping its healthcare delivery model through operational reforms designed to simplify the patient experience. The company plans to eliminate 30% of current prior authorization volume by the end of 2026, remove nearly two-thirds of pediatric prior authorization requirements and expand transparent pharmacy pricing through its fee-based PBM model. These initiatives, along with continued investments in digital services and affordability, position the company to improve efficiency while supporting sustainable long-term growth. UNH beat earnings in each of the past four quarters with an average surprise of 12.1%.

UnitedHealth Group Incorporated Price, Consensus and EPS SurpriseRegulatory scrutiny continues to cast a shadow over the company. Ongoing investigations involving Medicare billing practices and aspects of the Optum business could create headline risk and potentially increase compliance costs.

The Case for CenteneCentene continues to benefit from its strong presence in government-sponsored healthcare, particularly Medicaid, Medicare and the Marketplace business. Medicaid membership remained above 12.1 million during the second quarter, while stronger-than-expected state rate updates improved the company's expected composite Medicaid rate outlook from roughly 4.5% to approximately 5% for 2026. The favorable reimbursement environment, combined with disciplined medical cost management, continues to support earnings recovery.

In the second quarter of 2026, its revenues rose 9.9% year over year, along with 4.4% growth in premiums, benefiting from higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. CNC’s HBR improved 340 basis points year over year to 89.6% in the quarter under review. The bottom line went from a loss of 16 cents per share a year ago to earnings of $2.51.

Centene is sharpening its focus on businesses where it sees stronger long-term returns. The Medicare Advantage portfolio is being streamlined around dual-eligible beneficiaries, leveraging the company's Medicaid expertise to provide more integrated care. Over the past three reporting cycles, more than 90% of its core Medicaid clinical quality measures have improved through enhanced data capture, targeted provider incentives and scalable member engagement programs.

Technology transformation is becoming a larger part of Centene's long-term strategy. AI is already being used in forecasting, fraud detection and enterprise operations, while the company is investing in scalable data infrastructure, reusable AI capabilities and automated workflows across the organization. This measured approach is intended to improve operating efficiency, strengthen compliance in a highly regulated environment and create a more durable foundation for long-term earnings growth. The company beat earnings in each of the past four quarters with an average surprise of 151.3%.

Although reimbursement trends have improved, CNC still faces elevated costs from behavioral health, home health and high-cost specialty drugs. Its capital efficiency trails UNH. Centene's trailing 12-month return on invested capital stands at 4.5%, below UnitedHealth’s 6.2%. Also, CNC’s long-term debt-to-capital of 41.5% is higher than UNH’s 40.4%.

How Do Estimates Compare for UNH & CNC?For UnitedHealth, the Zacks Consensus Estimate forecasts 2026 EPS of $19.60, reflecting 19.9% year-over-year growth, followed by another 13.8% jump in 2027. For 2026, revenues are pegged at $446.6 billion, suggesting a 0.2% decline year over year. The top line is expected to improve 2.4% in 2027. It has witnessed 11 positive earnings estimate revisions over the past 30 days against no downward revisions.

Analysts anticipate a rebound in Centene’s 2026 earnings, with the Zacks Consensus Estimate standing at $3.82 per share, implying 83.7% year-over-year growth as its cost pressures ease. The same for 2027 indicates a 26.3% jump. The consensus mark for 2026 and 2027 revenues signals a decline of 0.4% and 1.5% year over year, respectively. It has witnessed two positive earnings estimate revisions over the past 30 days against no downward revisions.

Valuation: UNH vs. CNCUnitedHealth trades at a premium valuation relative to Centene, reflecting its superior earnings visibility, diversification and margin profile. Investors are willing to pay more for consistency and lower risk. UnitedHealth currently trades at a forward P/E of 19.95X, above Centene’s 15.16X and the industry’s 16.98.

Image Source: Zacks Investment Research

Price Performance ComparisonOver the past six months, UnitedHealth’s shares have gained 47.6%, outperforming Centene, the broader industry and the S&P 500’s growth of 42.2%, 41.9% and 4.2%, respectively. This contrast highlights improving investor confidence in UNH’s growth plan, cost containment and earnings visibility.

Price Performance – UNH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research

Price Target Outlook: UNH vs. CNCUNH currently trades below its average analyst price target of $481.52, implying a 14.5% potential upside from current levels. CNC also trades below its average analyst price target of $66.41, implying a 7.4% potential upside from current levels.

ConclusionUnitedHealth and Centene both offer exposure to the managed care industry, but they approach growth differently. CNC remains well positioned to benefit from its leadership in Medicaid and improving performance across its Marketplace and Medicare businesses. However, its heavier reliance on government-sponsored programs, lower profitability and relatively weaker capital efficiency make its earnings outlook more dependent on policy and reimbursement trends.

Meanwhile, UNH stands out with its diversified business model, where the combination of UnitedHealthcare and Optum provides multiple growth engines and stronger earnings resilience. Continued momentum in value-based care, expanding AI capabilities, operational reforms and a stronger balance of profitability support its long-term outlook.

Combined with favorable earnings estimate revisions, a larger implied upside to the average price target and a proven execution track record, UnitedHealth appears to be the better investment choice at current levels, even though both companies currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CNO Financial Group, Inc. (CNO) Q2 2026 Earnings Call July 31, 2026 11:00 AM EDT

Company Participants

Adam Auvil - Vice President of Investor Relations & Sustainability
Gary Bhojwani - CEO & Director
Paul McDonough - CFO & Executive VP
Eric Johnson - Chief Investment Officer

Conference Call Participants

Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division
Suneet Kamath - Jefferies LLC, Research Division
Joel Hurwitz - Dowling & Partners Securities, LLC
Videep Vemulapalli - Raymond James & Associates, Inc., Research Division
Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to CNO Financial Group's Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Adam Auvil. Please go ahead.

Adam Auvil
Vice President of Investor Relations & Sustainability

Good morning, and thank you for joining us on CNO Financial Group's Second Quarter 2026 Earnings Conference Call. Today's presentation will include remarks from Gary Bhojwani, Chief Executive Officer; and Paul McDonough, Chief Financial Officer. Following the presentation, we will also have other business leaders available for the question-and-answer period. During this conference call, we will be referring to information contained in yesterday's press release. You can obtain the release by visiting our website at cnoinc.com. This morning's presentation is also available on the Investors section of our website and was filed in a Form 8-K yesterday.

Let me remind you that any forward-looking statements we make today are subject to a number of factors, which may cause actual results to be materially different than those contemplated by the forward-looking statements. Today's presentation contains a number of non-GAAP measures, which should not be considered as substitutes for

AptarGroup NYSE: ATR reported second-quarter sales growth across each of its three segments and adjusted earnings per share above its guidance range, supported by stronger-than-expected performance in its Pharma business. The company also said President and CEO Stephan Tanda will retire later this year, with President and CEO Designate Gael Touya set to assume the CEO role on Sept. 1.

Reported second-quarter sales increased 6% to approximately $1 billion, a quarterly record, while core sales, which exclude currency effects and acquisitions, rose 1% from a year earlier. Adjusted EBITDA declined 3% to $213 million, and adjusted EBITDA margin fell to 20.7% from 22.6% in the prior-year period. Adjusted EPS was $1.42, compared with $1.68 a year earlier at comparable exchange rates.

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Chief Financial Officer Vanessa Kanu said the earnings decline reflected lower emergency medicine sales in Pharma, operating challenges in Beauty and Closures, higher depreciation and amortization related to investments and acquisitions, and higher interest expense.

Pharma Growth Excluding Emergency Medicine Pharma core sales rose 1% in the quarter, affected by an anticipated decline in emergency medicine sales. Aptar expects emergency medicine sales to decline by about $65 million during fiscal 2026. Kanu said roughly two-thirds of that headwind occurred during the first half, with most of it occurring in the second quarter. The remaining portion is expected primarily in the third quarter, with the year-over-year impact expected to abate by the fourth quarter.

Excluding emergency medicine, Pharma core sales rose 8%. Prescription core sales declined 7% overall but increased 8% excluding emergency medicine, driven by central nervous system treatments and asthma and COPD applications. Consumer healthcare core sales increased 15%, supported by demand for nasal decongestants, eye-care products, dermal solutions and tooling. Injectables core sales rose 9%, reflecting demand for elastomeric components used in GLP-1 therapies, biologics and vaccines.

Pharma’s adjusted EBITDA margin was 33.6%, down 180 basis points from the prior year, largely because of the mix effect from lower high-margin emergency medicine sales. Kanu said the segment’s margin would have improved year over year excluding emergency medicine.

Management also pointed to continued pipeline activity in Annex I compliance, GLP-1 and biologics projects. Touya said the company has completed its larger investment phase at its Congers, New York, injectable manufacturing site and that customer audits, inspections and validations are supporting growth.

The company highlighted several technology developments, including an approved U.S. patent application for N-Sorb, an active-material solution intended to address nitrosamine impurities in pharmaceutical products. Aptar also introduced a collaborative system framework for injectable therapies designed to provide customers with earlier information on the performance of assembled injection systems.

In respiratory delivery, Aptar noted regulatory approvals involving products that use its inhaler technologies. It also cited Chiesi’s U.K. approval for what Aptar described as the first pressurized metered-dose inhaler using HFA-152a, a next-generation lower-global-warming-potential propellant.

Beauty and Closures See Sales Growth, Margin Pressure Beauty core sales increased 1%, as demand for dispensing systems and higher input-cost pass-throughs offset lower tooling sales. Fragrance, facial skincare and color cosmetics sales grew 2%, led by prestige fragrance pumps and color cosmetics. Personal care sales were flat, as hair-care demand did not fully offset lower tooling sales.

Beauty’s adjusted EBITDA margin was 12.2%, down 190 basis points year over year, though it improved sequentially from the first quarter. Kanu attributed the year-over-year decline to lower volumes, unfavorable mix and the timing of resin and other inflationary pass-throughs. She said a delay in Beauty pricing pass-throughs reduced the segment’s quarterly margin by roughly 80 to 90 basis points and is expected to be resolved in the third quarter.

During the question-and-answer session, Tanda said Aptar had experienced weak sales in Brazil, where he said two major customers can shift market share. He said the company’s Beauty turnaround in Europe has reached its target range, while Asia is performing above that range, but the Americas have underperformed because of operational challenges in North America and market weakness in Brazil. Touya said he is reviewing the business with a “fresh perspective” and plans to engage with customers and operations teams before detailing further actions.

Closures core sales increased 4%. Food sales declined 1% due to lower tooling sales, partially offset by demand for sauce and condiment dispensing closures. Beverage sales rose 14%, driven by bottled water and functional sports drinks. The segment’s adjusted EBITDA margin was 14.9%, down 200 basis points, due to the ramp-up of new production lines and a maintenance initiative that management said is making sequential progress.

Cash Flow, Capital Returns and Outlook For the first six months of 2026, reported sales rose 8% and core sales increased 1%. Adjusted EBITDA was unchanged at $401 million, while adjusted EBITDA margin declined 170 basis points to 20%. Adjusted EPS fell 12% to $2.61.

Year-to-date free cash flow increased by $8 million to $99 million, consisting of $222 million in cash from operations less $123 million in capital expenditures, net of government grants. Aptar returned $212 million to shareholders through dividends and share repurchases during the first half, including the repurchase of 1.1 million shares for $150 million.

The company ended the quarter with $190 million in cash, $1.2 billion in net debt and a leverage ratio of 1.49 times. Kanu said Aptar expects third-quarter adjusted EPS of $1.45 to $1.53, based on an effective tax rate of 22.5% to 24.5% and a euro-to-U.S.-dollar exchange rate of $1.14. Full-year capital investments are expected to range from $260 million to $280 million, while depreciation and amortization expense is projected at $310 million to $320 million.

Touya said Aptar expects growth across all three segments, citing demand in Pharma, continued momentum in Closures and improving trends in Beauty. As he prepares to take over as CEO, Touya said his priorities will be to drive profitable growth, execute consistently and allocate capital thoughtfully.

About AptarGroup (NYSE:ATR)AptarGroup, Inc is a global provider of advanced dispensing, sealing and protection solutions for consumer and pharmaceutical markets. The company designs and manufactures a broad portfolio of products that enable the controlled delivery of liquids, gels, powders and aerosols. Its customer base spans beauty and personal care, home care, food and beverage, and pharmaceutical sectors, where innovation in packaging and drug‐delivery devices drives brand differentiation and regulatory compliance.

In the consumer markets, AptarGroup offers pumps, actuators, valves, closures and specialized bottles engineered for precision, convenience and sustainability.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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IonQ (IONQ +2.26%) just received final regulatory approval for one of its most important deals to date: the acquisition of SkyWater Technology. SkyWater is the largest exclusively U.S.-based semiconductor foundry and is recognized by the Department of Defense as a trusted foundry.

The deal gives IonQ full control of its supply chain. It now has a factory to manufacture its chips, eliminating the need to rely on outside suppliers. In light of this acquisition, it's a good time to consider where IonQ will be in a year.

Image source: The Motley Fool.

The numbers are trending up Financially, IonQ stands out among pure-play quantum computing companies. Revenue growth is accelerating, as IonQ reported sales of $64.7 million in the first quarter of 2026, a year-over-year increase of 755%. Its remaining performance obligations, meaning future contracted revenue not yet recorded on an income statement, hit a record $470 million. The results were good enough for IonQ to raise full-year revenue guidance to between $260 million and $270 million.

That's a stark difference from IonQ's main competitors: D-Wave Quantum, Rigetti Computing, and Quantum Computing. They all had revenue of less than $5 million in their most recent reported quarters. Multiple companies are dedicated to quantum computing systems, but only IonQ has achieved commercial success to date.

IonQ also has a solid balance sheet, with $3.1 billion in cash, cash equivalents, and investments. With plenty of cash reserves, substantial revenue growth, and now a major acquisition, IonQ has a strong bull case over the next year.

The risk could impact IonQ's upside While there's a lot to like about IonQ, it's still a high-risk investment. It's burning cash: Operating cash flow was negative $151 million in the first quarter, and management is guiding for a full-year adjusted EBITDA loss of $310 million to $330 million. The cash reserves give it a long runway, but this is a company that has had to spend heavily to keep scaling.

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IonQ stock is also expensive, trading at 55 times trailing sales as of July 29. That's in the same range as Palantir Technologies, the poster child for expensive stocks, but well below its competitors. D-Wave and Rigetti both trade at over 400 times trailing sales, for comparison. Still, high valuations often lead to a correction, which has already been happening this year, with quantum computing companies and tech stocks trading at a premium.

Wall Street analysts expect IonQ to perform well over the next 12 months, but there's a wide range of forecasts, with a per-share low of $48.50 and a high of $100. The average is $69.31, which would represent over 100% upside at IonQ's current share price.

I think there's a good chance IonQ will continue to exceed revenue expectations and deliver positive results for shareholders. With that in mind, this could be an opportunity to buy the dip on one of the top quantum computing stocks. However, IonQ will likely remain volatile, so size any investments in it accordingly.

Key Takeaways IDCC is expanding licensing beyond smartphones into streaming, cloud, automotive and IoT markets.InterDigital signed licensing deals with Amazon, a fintech company and KEBA to broaden recurring revenues.IDCC is investing in 6G, AI networking and video technologies to support future licensing opportunities. InterDigital, Inc. (IDCC - Free Report) has long been recognized for monetizing its wireless patent portfolio through smartphone licensing. However, the company is increasingly broadening its reach into adjacent markets, creating additional recurring revenue opportunities beyond its traditional handset business.

Its strategy now spans streaming services, cloud platforms, consumer electronics, automotive applications, Internet of Things (IoT) devices and next-generation communications technologies. This diversification aims to strengthen long-term licensing growth while reducing dependence on any single end market.

How IDCC Builds Revenue Through LicensingInterDigital generates most of its revenue from patent licensing, reflecting the strength of its intellectual property portfolio across wireless and video technologies. In addition to licensing royalties, the company also earns revenue from patent sales, technology solutions licensing, engineering services and product sales. It operates through a single business segment, allowing management to leverage its research investments across multiple end markets.

Its portfolio covers technologies used in cellular communications, video encoding and transmission, artificial intelligence, and connected devices. Continued participation in global technology standards helps InterDigital develop patents that can be licensed across a broad range of products rather than relying on any single device category.

Image Source: Zacks Investment Research

Companies such as QUALCOMM Incorporated (QCOM - Free Report) and Nokia Corporation (NOK - Free Report) also generate licensing revenue from extensive wireless patent portfolios, underscoring the importance of intellectual property ownership within the communications ecosystem.

Why InterDigital Is Diversifying Its BusinessWhile smartphones remain an important licensing market, InterDigital has expanded into streaming services, cloud platforms, consumer electronics, automotive applications and IoT devices. This broader strategy increases the number of industries that can benefit from the company's patented technologies.

Recent agreements illustrate that expansion. InterDigital reached a milestone licensing agreement with Amazon covering devices and services, including Prime Video, with final financial terms to be determined through binding arbitration. The company also signed new IoT licensing agreements with a leading fintech company for payment terminals and with KEBA covering electric vehicle chargers. These agreements expand recurring licensing opportunities beyond traditional handset manufacturers while supporting the company's long-term recurring revenue objectives.

How IDCC Is Positioning for Future TechnologiesInterDigital continues investing heavily in technologies expected to underpin future communications standards. Its research spans 6G, AI-native networking and advanced video technologies, helping position the company to create intellectual property for future licensing opportunities.

The company also maintains significant leadership within global standards organizations, strengthening its influence as next-generation wireless specifications are developed. Management believes these investments should support licensing opportunities across industries ranging from connected vehicles and industrial IoT to streaming platforms and consumer electronics. 

What Could Slow InterDigital's GrowthDespite its diversification strategy, several risks remain. Customer concentration continues to expose results to a relatively small group of major licensees, while revenue can fluctuate depending on the timing of licensing agreements and renewals.

The company also faces ongoing patent enforcement and litigation expenses as it protects its intellectual property portfolio. Sustaining technology leadership requires continued investment in research and development, and slower demand in certain consumer electronics or IoT markets could weigh on licensing activity over time.

How IDCC's Ratings Fit the Bigger PictureInterDigital's expansion beyond smartphones provides multiple avenues for future growth, but investors should also consider how the stock's quantitative ratings complement that business story.

The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.  However, its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of F suggest the shares may be less attractive for investors focused on valuation or recent price momentum. Rather than contradicting the company's business strengths, these Style Scores provide a different lens for evaluating the stock based on specific investing styles.

Key Takeaways Mattel is expected to benefit from Hot Wheels, partner brands and growing digital gaming revenue.MAT may see stronger sales from improving retailer orders and international market momentum.Mattel faces tariff, inflation and marketing cost pressures despite expected revenue growth. Mattel, Inc. (MAT - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4, after the closing bell.

MAT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average negative surprise being 1.6%.

Trend in the Estimate Revision of MATThe Zacks Consensus Estimate for second-quarter earnings per share is pegged at 3 cents, down 84.2% year over year.

For revenues, the consensus mark is pegged at $1.08 billion. The metric indicates a gain of 6% from the year-ago quarter’s figure.

Factors Likely to Shape Mattel’s Q2 ResultsMattel’s second-quarter 2026 top line is likely to have benefited from sustained strength in several high-performing brands and healthy consumer demand. Hot Wheels is expected to have remained a key growth engine, supported by continued momentum in vehicles, while UNO, Monster High, Masters of the Universe and the recently launched Mattel Brick Shop are likely to have contributed meaningfully.

Partner brands such as Toy Story and WWE, along with expanding digital game licensing revenue and the consolidation of Mattel163, are also expected to have provided incremental sales support. Management noted that consumer demand remained healthy, the toy industry continued to expand, and second-quarter sales trends had accelerated from the first quarter.

Another driver of second-quarter revenue is likely to have been the improving retailer ordering patterns in North America after prior disruptions, coupled with continued strength across international markets. The company expects North America to return to growth as retailer inventory movements normalize, while shipments are anticipated to have accelerated during the quarter. Upcoming entertainment releases, particularly the Masters of the Universe movie and related product launches, robust demand for Mattel Brick Shop, expanding action figures and games and ongoing investments in digital gaming and brand-led initiatives are also expected to have supported revenue growth.

Mattel’s bottom line in the second quarter is likely to have remained under pressure from elevated tariff-related costs, inflation and unfavorable foreign exchange movements, even though management expects sequential gross margin improvement. Higher spending on strategic growth initiatives, including digital games, technology and infrastructure, along with increased advertising and marketing investments tied to product launches and entertainment initiatives, may also have weighed on profitability. While cost-saving programs and tariff mitigation efforts should have provided some relief, margins are expected to have remained below the company's full-year target during the quarter.

What Our Model Unveils About MATOur proven model doesn’t conclusively predict an earnings beat for Mattel this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. That is not the case here.

Earnings ESP for MAT: Mattel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mattel’s Zacks Rank: The company has a Zacks Rank #3 at present.

Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

 Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +1.12% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Life Time Group is expected to register a 21.6% increase in earnings for the to-be-reported quarter. LTH reported better-than-expected earnings in each of the trailing four quarters, with the average surprise being 10.9%.

Marriott Vacations Worldwide Corporation (VAC - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank of 3.

Marriott Vacations earnings for the to-be-reported quarter are expected to increase 1%. VAC reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 0.7%.

Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +6.40% and a Zacks Rank of 3.

Cinemark’s earnings for the to-be-reported quarter are expected to increase 57.1%. CNK reported lower-than-expected earnings in each of the trailing four quarters, with the average negative surprise being 20.4%.

Key Takeaways Jacobs' Q3 revenues may rise on demand across AI infrastructure, water and energy markets.PA Consulting, and Infrastructure & Advanced Facilities are expected to post y/y growth.Jacobs' backlog is projected at $26.49 billion, suggesting a 16.7% y/y rise, supported by strong bookings. Jacobs Solutions, Inc. (J - Free Report) is slated to report third-quarter fiscal 2026 results on Aug. 04, after market close.

In the last reported quarter, the company’s adjusted earnings and gross revenues topped the Zacks Consensus Estimate by 6.7% and 13.8%, respectively. On a year-over-year basis, adjusted earnings and gross revenues grew 22.4% and 27%, respectively.

Jacobs’ earnings beat the consensus mark in the last four quarters, the average surprise being 4%.

How Are Estimates Placed for Jacobs Stock?For the fiscal third quarter, the Zacks Consensus Estimate for earnings per share has been unchanged at $1.84 over the past 30 days. The estimate indicates 13.6% year-over-year growth from $1.62.

The consensus mark for gross revenues is pegged at $3.54 billion, indicating an increase of 16.9% from the year-ago reported figure of $3.03 billion.

Factors to Note Ahead of Jacobs' Q3 ResultsRevenuesJacobs’ revenues in the fiscal third quarter are expected to have increased year over year because of sustained demand across AI infrastructure, data centers, transportation modernization, water, energy and advanced manufacturing markets. This growth is likely to have been reflected in increased contributions from the company’s Infrastructure & Advanced Facilities segment (which accounted for 90.3% of gross revenues in the second quarter of fiscal 2026).

Healthy demand for digital consulting, national security, public sector advisory and European defense-related work is expected to have supported the PA Consulting segment’s growth (which contributed 9.7% to fiscal second-quarter gross revenues) during the fiscal third quarter.

The Zacks Consensus Estimate for revenues from the Infrastructure & Advanced Facilities and PA Consulting segments is pegged at $3.2 billion and $366 million, indicating year-over-year growth from $2.7 billion and $333 million, respectively.

Strong bookings activity, record backlog levels and a favorable book-to-bill ratio, supported by demand across key infrastructure and advanced facilities markets, are expected to have driven backlog growth in the fiscal third quarter. The consensus mark for backlog during the quarter is pinned at $26.49 billion, suggesting 16.7% year-over-year growth.

Although ongoing geopolitical tensions and elevated inflation are likely to have been headwinds, resilient demand across the company’s end markets and solid project execution are expected to have supported revenue growth.

EarningsThe bottom line of Jacobs is likely to have grown in the fiscal third quarter because of healthy project execution, favorable business mix and strong operating discipline across its businesses. Margin expansion is also likely to have benefited from the company’s operational improvement initiatives, disciplined cost management and increasing contributions from higher-margin businesses, including PA Consulting.

The Zacks Consensus Estimate for operating profit of the Infrastructure & Advanced Facilities and PA Consulting segments is pegged at $262 million and $83 million, implying year-over-year growth of 11% and 15.3%, respectively.

What the Zacks Model Says for JacobsOur proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.

J’s Earnings ESP: Jacobs has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Jacobs’ Zacks Rank: The stock currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable CombinationHere are some stocks from the Zacks Construction sector, which, per our model, have the right combination of elements to deliver an earnings beat this time around.

Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present.

Boise Cascade’s earnings beat estimates in two of the last four quarters, missed on one occasion, and met on the remaining occasion, the average surprise being 40.8%. The company’s earnings for the second quarter of 2026 are expected to decline 25% year over year.

Amentum Holdings, Inc. (AMTM - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 3.

Amentum’s earnings beat estimates in the last four quarters, the average surprise being 4%. The company’s earnings for the second quarter of 2026 are expected to increase 12.5% year over year.

Limbach Holdings, Inc. (LMB - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank of 3 at present.

Limbach’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 37.3%. LMB’s earnings for the second quarter of 2026 are expected to rise 5.4% year over year.

Key Takeaways Broadridge's fiscal Q4 2026 revenues are expected to rise 5.3% year over year to $2.17 billion.AI investment, tokenization demand and digital communications are expected to support top-line growth.BR's fiscal Q4 earnings are projected to increase 5.6% year over year to $3.75 per share. Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report its fourth-quarter fiscal 2026 results on Aug. 4, before the opening bell.

The company has an impressive earnings surprise history. BR’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.5%.

Shares of BR have had a decent run over the past month. The stock has risen 9.8% against the industry’s 1% and the Zacks S&P 500 composite’s 2.7% decline.

Q4 Expectations for BRThe Zacks Consensus Estimate for revenues is pinned at $2.17 billion, suggesting a 5.3% rise from the fiscal fourth-quarter 2025 actuals.

A resilient recurring revenue model, increased investments in artificial intelligence (AI) and robust demand for tokenization and digital communications are collectively expected to have boosted the company’s top line in the June-end quarter of fiscal 2026.

The Zacks Consensus Estimate for net revenues at Investor Communication Solutions is pegged at $1.69 billion, suggesting a 5.8% year-over-year increase. The consensus estimate for net revenues in the Global Technology and Operations segment is pegged at $481.53 million, indicating a 3.6% year-over-year rise. Internal growth, new businesses and acquisitions are likely to have driven the expected growth.

The company continues to broaden shareholder engagement capabilities, enabling its governance business to drive growth. BR is also expanding institutional voting capabilities, helping asset managers manage proxy voting more independently through AI-enabled policy tools. The acquisition of Kyndryl's Securities Industry Services continues to support platform modernization in Canada and revenue generation in the wealth management business.

Broadridge recently launched a wealth platform for a major Canadian wealth manager and introduced a digital asset platform designed to support crypto assets and tokenized securities. These efforts are expected to have increased revenues and operating income across segments.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $3.75 per share, indicating a 5.6% year-over-year increase. We expect increasing collective operating income across segments to have benefited the bottom line in the quarter.

What Our Model Says About BROur proven model does not conclusively predict an earnings beat for Broadridge this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderHere are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.

AMD (AMD - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank of 2. The company is scheduled to report its second-quarter 2026 results on Aug. 4.

The Zacks Consensus Estimate for AMD’s second-quarter 2026 revenues is pegged at $11.32 billion, indicating year-over-year growth of 47.3%. For earnings, the consensus mark is pegged at $1.61 per share, implying a 235.4% increase from the year-ago quarter’s actual. AMD beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 6.5%.

Arista Networks, Inc. (ANET - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank of 2. The company is scheduled to announce its second-quarter 2026 results on Aug. 4.

The Zacks Consensus Estimate for ANET’s second-quarter 2026 revenues is pegged at $2.83 billion, indicating 28.5% year-over-year growth. The consensus estimate for earnings is pegged at 89 cents per share, implying a year-over-year increase of 21.9%. ANET beat the consensus estimate in each of the trailing four quarters, delivering an average earnings surprise of 8.3%.

A month has gone by since the last earnings report for FactSet Research (FDS - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FactSet due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for FactSet Research Systems Inc. before we dive into how investors and analysts have reacted as of late.

FactSet’s Q3 Earnings Beat EstimatesFactSet Research Systems Inc. has reported third-quarter fiscal 2026 adjusted earnings of $4.53 per share, beating the Zacks Consensus Estimate of $4.44 by 2%. The figure increased 6.1% from the year-ago quarter.

Revenues of $622.9 million surpassed the consensus mark of $617.2 million by 0.9% and rose 6.4% year over year. Organic revenues grew 7%, while organic ASV rallied 7.1% to $2.49 billion.

FDS’s Revenue Growth Gains TractionFactSet’s top line benefited from continued demand across institutional buy-side and wealth management clients. Organic revenues were $622.9 million, up from $582.2 million in the prior-year period.

The company’s revenue growth reflected stronger client engagement and expanding enterprise relationships. Management noted that clients continued to choose FactSet for differentiated content, analytics and workflow solutions.

FactSet’s ASV Momentum Remains HealthyAnnual Subscription Value, or ASV, was $2.48 billion as of May 31, 2026, compared with $2.34 billion a year ago. Organic ASV came in at $2.49 billion, increasing $165 million year over year.

Organic ASV increased $35.4 million over the past three months. FactSet’s annual ASV retention remained above 95%, while enterprise renewals in the quarter extended 30% in length on average.

FDS’ Regional Revenues Show Broad GrowthRevenues from the Americas were $407.2 million in the third quarter of fiscal 2026, up 7% on an organic basis from the year-ago quarter. The region remained FactSet’s largest revenue contributor, supported by an ASV base of $1.62 billion.

EMEA revenues were $152 million, with organic revenue growth of 5.3%. The Asia Pacific revenues rose 10.5% organically to $63.7 million, whereas organic ASV growth in the region was 10%, the strongest among FactSet’s reported regions.

FactSet’s Margins Reflect Cost PressureAdjusted operating income was $211.8 million, down 1.7% from the prior-year quarter. The adjusted operating margin contracted to 34% from 36.8% a year earlier.

The margin decline reflected higher compensation and technology-related expenses. The GAAP operating margin was 26.7%, down from 33.2% due to higher employee compensation costs, including one-time charges and CEO compensation costs.

FDS’ Cash Flow & Capital Returns ImproveFactSet generated $284.5 million in net cash from operating activities during the quarter, up 12.1% year over year. The free cash flow increased 11.1% to $254 million.

The company returned $243.4 million to shareholders in the quarter. This included $203.1 million in share repurchases and $40.3 million in dividends. FactSet also raised its quarterly dividend by 6 cents to $1.16 per share, marking its 27th consecutive year of dividend increases.

FactSet Reaffirms FY26 OutlookFDS has reaffirmed its fiscal 2026 guidance. The company continues to expect organic ASV growth of $130-$160 million and GAAP revenues of $2.45-$2.47 billion.

The adjusted operating margin is expected to be 34-35.5%. Adjusted diluted earnings are projected between $17.25 and $17.75 per share.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.

VGM ScoresCurrently, FactSet has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, FactSet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Ondo Perps Clears $300M in Daily Volume@OndoPerps, the perpetual futures exchange operated by @Ondo, has recorded $300 million in 24-hour trading volume, crossing the nine-figure mark in a single day. The platform is now approaching $70 million in total open interest, a notable figure given that it has been live for less than one month.

DeFiLlama data shows Ondo Perps has processed roughly $3 billion in perpetual futures volume over its first 30 days of operation, underlining the speed at which the platform has attracted on-chain activity.

What Ondo Perps OffersOndo Perps launched on July 7, 2026, billed as the first perpetual futures platform for equities and commodities that accepts tokenized securities as collateral alongside stablecoins. Available to non-U.S. investors, the platform offers up to 20x leverage across a range of underlying assets, including major U.S. stocks such as Apple, Nvidia, and Tesla, as well as ETFs, gold, silver, and oil.

The collateral design is a key differentiator. Most competing venues require traders to hold tokenized equities separately while posting stablecoins as margin, creating a capital efficiency problem. Ondo Perps allows traders to use tokenized equity holdings directly as margin, removing the need to maintain separate capital reserves.

The exchange operates on Ondo Network, a private, high-speed trading infrastructure that Ondo Finance unveiled in late July 2026. The network separates fast trade execution from settlement on public blockchains, an architecture aimed at matching the performance of centralised exchanges while retaining on-chain settlement guarantees.

The rapid scaling of the protocol points to concentrated demand for RWA-linked derivatives among on-chain market participants, a segment that has historically lacked a dedicated, capital-efficient venue. With open interest closing in on $70 million in its first weeks, @OndoPerps appears to be gaining traction as that gap narrows.

Sources:
Ondo Perps launch press release, PR Newswire
Ondo Perps volume data, DeFiLlama
Ondo Network infrastructure report, CoinDesk

Hyperliquid has traded within a descending channel since it faced rejection at $72 three weeks ago.

Over this period, all attempted rebounds have failed, reflecting sustained bearish pressure after every slight gain.

As of this writing, Hyperliquid traded around $54, up 0.65% on the daily chart. However, it remained down 7.3% weekly. The altcoin has continued to decline, largely driven by rising sell pressure from major investors.

Why are Hyperliquid whales selling? As Hyperliquid’s [HYPE] downtrend continued, some whales turned bearish and started selling.

According to Lookonchain, one whale returned to the market and unstaked its HYPE holdings. The whale unstaked 1.02 million HYPE, worth $57.6 million, and deposited it into FalconX and Coinbase Prime.

The investor purchased these tokens 17 months ago at an average price of $18.

Therefore, the position carried more than $39 million in unrealized profit before any confirmed sale.

Source: Arkham That was not all. The whale also unstaked 1.89 million HYPE, worth $105.9 million, from another wallet. The decision could reflect skepticism or asset reorganization. However, unstaking alone does not confirm an immediate sale.

The second tranche had not been deposited into any exchange at press time.

Even so, the whale activity captured the market’s attention and could spark fear among smaller traders.

Why are more investors unstaking? Notably, the whale was not an isolated case. Unstaking has become increasingly common among individual and institutional investors.

A week ago, AMBCrypto reported that 4.09 million HYPE, worth $241 million, was pending unstaking. Since then, that figure has more than doubled to 9.1 million HYPE, worth $496.6 million.

Source: Hyperscreener Additionally, Total Staked HYPE dropped from 438.7 million to 435.9 million. Rising pending unstakes and declining staked HYPE suggested that some long-term holders were reducing their exposure.

However, unstaking does not confirm that every holder intends to sell.

Could HYPE fall to $52? Investors were either selling unstaked HYPE or waiting after unstaking, adding uncertainty around future supply.

As a result, the Aroon Down line climbed to 92%, while the Aroon Up line declined to 28%. This setup indicated that HYPE formed lower lows more frequently than higher highs, reflecting strong downside pressure.

Source: TradingView The Relative Strength Index (RSI) also dropped deeper into bearish territory, reinforcing the weakness.

Together, both indicators suggested that the downtrend could continue. If selling pressure persists, Hyperliquid may drop toward the next support at $52.

Final Summary One whale deposited $57.6 million in HYPE into FalconX and Coinbase Prime. The same whale unstaked another $105.9 million, although those tokens had not reached exchanges.

Aster Opens Vault Product to All UsersAster DEX has confirmed that its Vault beta phase is complete, with the product now open to every user on the platform. The launch marks a notable expansion for the multi-chain perpetuals DEX, which runs across Ethereum, Arbitrum, Solana, and BNB Chain.

The Vault feature is designed to bridge the gap between active traders and passive investors. Users can deposit funds into a vault and share in its profits and losses based on their stake. Each vault is structured as a pooled account managed by a single trader who runs the deposited funds as one portfolio. The service supports deposits in USDT and USD1.

Three Vault Modes and Manager IncentivesAster offers three transparency settings to suit different preferences. Public vaults disclose both positions and performance, while private vaults hide positions but still disclose performance. Flexible vaults allow managers to switch between public and private modes.

Before depositing, users can review each vault's lock-up period and profit-sharing ratio. Funds can be withdrawn after the lock-up period ends, though some positions may be reduced or liquidated if needed to process withdrawal requests.

The structure also creates a clear path for skilled traders to monetize their edge. Managers can launch investable vaults, build a verifiable public track record, and earn a share of realized profits, turning strong performance into a sustainable revenue stream on-chain.

The Vault beta launched on 24 July 2026, expanding Aster's social trading features. The full rollout to all users signals that the beta testing phase met the team's requirements ahead of a broader release.

The move fits into a wider product push at Aster. Looking ahead, the second half of 2026 will focus on continuous product improvements and expanding the Aster ecosystem, including automated liquidity management vaults, real-world crypto payments, and institutional-grade block trading. The Vault product aligns directly with the copy-trading and managed-strategy direction the team has been signalling.

Sources:
Bloomingbit: Aster Launches Beta Vaults for Managed Trading Strategies
CoinMarketCap: Latest Aster News and Updates
Aster DEX: Official Roadmap

Dr. Kamilah Stevenson, a blockchain strategist known as The Wealth Doctor, has put forward a six-part upgrade package for the XRP Ledger aimed at making the public network more attractive to banks and corporations. These proposed changes focus on facilitating confidential transfers and improving compliance features, with the goal of addressing key concerns institutions face when considering public blockchains.

Confidential transfers and compliance focusDr. Stevenson emphasized that financial institutions and corporations have hesitated to use public blockchain networks for sensitive transactions, primarily because transaction data—including balances, counterparties, and timing—are visible to anyone with access to the network. She argues that this visibility compromises privacy and confidentiality, both of which are non-negotiable requirements for many enterprises operating under regulatory oversight.

The confidential transfers feature included in her proposal would conceal transaction amounts from public view while still allowing the ledger to validate the legitimacy of each transfer and ensure no improper creation of assets occurs. This privacy mechanism, according to Dr. Stevenson, is critical for enterprise adoption.

“When technology reaches ordinary people, it disappears,” Dr. Stevenson said, pointing out that consumers could use products built on the upgraded XRP Ledger without having to buy XRP or be aware that blockchain technology underpins the application.

Mini dictionary: XRP Ledger, also known as XRPL, is an open-source, decentralized blockchain widely used for fast, low-cost cross-border payments.

Additional upgrade featuresBeyond confidential transfers, the proposed upgrade package addresses several operational and technical needs. Batch transactions would permit multiple actions to be executed together, succeeding or failing as a single unit, enabling greater efficiency for corporate workflows. Permission delegation is envisioned to allow limited account authority, granting specific permissions to associates or automated processes without sharing full private key access.

The integration of Dynamic NFTs, which are tokens with properties that can be updated after issuance, could attract new enterprise and consumer applications. Additionally, node-performance improvements could yield up to 40% reductions in memory use, potentially lowering infrastructure costs for network participants.

FeaturePurposeIntended UsersConfidential transfersPrivacy for transaction detailsBanks, enterprisesBatch transactionsMultiple actions in one stepInstitutional usersPermission delegationControlled account accessCorporate accountsDynamic NFTsModifiable token featuresDevelopers, enterprisesNode-performance upgradesMemory efficiencyNetwork validatorsGovernance and upgrade processUnder the XRP Ledger’s governance model, any amendment or upgrade requires continuous support from at least 80% of validators over a two-week period. If validator backing falls below this threshold at any point, the activation timer resets. Dr. Stevenson described this conservative protocol as specifically designed to give stability and predictability to institutions evaluating long-term infrastructure investments.

Any proposed features must navigate the amendment process before becoming active on the XRP Ledger, and no set date or validator numbers for this upgrade package have been disclosed.

Since the features remain in the proposal stage, there are as yet no market price movements or adoption figures directly attributed to the potential upgrade. Implementation would ultimately rely on community support, validator consensus, and the resolution of any technical or compliance questions that arise during the approval process.

If these upgrades are adopted, the XRP Ledger could expand its appeal to regulated firms, but actual integration would depend on further alignment with compliance requirements and demonstrated enterprise demand.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Ethereum has turned 11, and the network’s birthday arrives with a very Ethereum-style contradiction: it is still one of the most important settlement layers in crypto, but its base-chain revenue has cooled sharply.

The validated July 31 notes show Ethereum hosting roughly $148.8 billion in stablecoins and around $15.5 billion in tokenized real-world assets. At the same time, daily mainnet revenue was reported near $330,000, with base-chain fees around $734,000 over a 24-hour period.

That combination tells the real story better than a birthday tribute would.

Ethereum is still deeply important. Stablecoins, DeFi, tokenized assets, Layer 2 settlement, and institutional infrastructure all continue to orbit around it. But the economics of the base chain are changing as activity moves across rollups, alternative chains, and cheaper execution environments.

Ethereum is not disappearing. Its revenue model is evolving.

For more details, visit the official Etherscan platform.

TL;DR Ethereum turned 11 on July 30, 2026. The network hosts about $148.8 billion in stablecoins and roughly $15.5 billion in tokenized real-world assets. Mainnet revenue has cooled, showing the trade-off between scaling and base-layer fee capture. Ethereum’s First Decade Was About Survival And Expansion Ethereum’s first 11 years have been unusually eventful.

The network launched as Frontier in July 2015. Since then, it has survived the DAO crisis, hard forks, congestion cycles, NFT manias, DeFi booms, stablecoin growth, competing Layer 1s, regulatory pressure, and the Merge to proof-of-stake.

It also became the default home for much of crypto’s financial experimentation.

Stablecoins grew on Ethereum. Lending markets scaled there. DEXs became serious there. Tokenized assets, DAOs, NFTs, and Layer 2 ecosystems all built around Ethereum’s developer base and security assumptions.

That is why the stablecoin figure matters.

A $148.8 billion stablecoin base is not just a vanity metric. It shows that Ethereum remains a major settlement environment for dollar-denominated crypto activity, even as cheaper networks compete for transaction volume.

The Fee Drop Is Not Automatically Bad Lower mainnet revenue can be read in two ways.

The bearish reading is that Ethereum is losing economic value. If users are paying less to transact on mainnet, ETH fee burn declines, validator economics change, and the network may capture less direct revenue from activity.

That matters.

But the more balanced reading is that Ethereum scaling is working in a way that changes where activity happens. Rollups and Layer 2 networks were designed to make transactions cheaper and move execution away from the congested base chain. If users can transact more cheaply, mainnet fees should fall.

That is the trade-off.

Ethereum wanted scaling. Scaling reduces fees. Lower fees reduce direct mainnet revenue. The question is whether Ethereum captures enough value through settlement, data availability, ETH monetary premium, and Layer 2 alignment to offset lower base-chain activity.

That is now one of Ethereum’s central debates.

Stablecoins Are The Anchor Stablecoins remain one of Ethereum’s strongest anchors.

Speculative applications come and go, but stablecoins have become core financial plumbing. Traders use them. Exchanges use them. DeFi protocols use them. Payment companies use them. Treasury desks and market makers use them.

If Ethereum continues to host a large share of stablecoin value, it remains strategically important even if some transaction execution migrates elsewhere.

The same is true for tokenized real-world assets.

A reported $15.5 billion RWA base is still small relative to traditional finance, but meaningful within crypto. Tokenized treasuries, credit products, funds, and other on-chain assets have become one of the more serious institutional narratives in the market.

Ethereum’s role is less about being the cheapest chain and more about being a trusted settlement layer with deep liquidity, developer tooling, and long-running infrastructure.

Layer 2s Changed The Revenue Conversation Ethereum’s Layer 2 strategy is both its strength and its complication.

On one hand, rollups make Ethereum more usable. They reduce congestion, lower transaction costs, and allow applications to scale without every user touching mainnet directly.

On the other hand, they fragment liquidity and reduce direct fee pressure on the base chain.

That creates a new valuation question for ETH.

In the old model, high demand for blockspace translated into high fees and more burn. In the newer model, activity may happen across many Layer 2s, while Ethereum earns through settlement and data-related demand. That can be healthier for users but harder for investors to model.

The network’s 11th birthday therefore comes at an important moment.

Ethereum is no longer proving that smart contracts matter. That battle was won years ago. Now it is proving that a modular scaling strategy can still support strong ETH economics.

Ethereum’s Next Chapter Is About Value Capture Ethereum’s position remains strong, but the easy narrative is gone.

It is not enough to say Ethereum has the most developers or the deepest DeFi history. Competitors are faster, cheaper, and more specialized. Layer 2s create both scale and fragmentation. Mainnet fees no longer tell the whole story.

The better question is where value ultimately settles.

If stablecoins, RWAs, DeFi collateral, and rollups continue depending on Ethereum security, then lower fees may be part of a successful scaling path. If too much activity and value drift away without returning economic benefit to ETH, the market will care.

That is why the current data is so interesting.

Ethereum at 11 is still foundational, but the business model of the base layer is being rewritten in real time.

This article is based on public Ethereum network data and July 2026 stablecoin, RWA, and fee metrics.

This article was written by the News Desk and edited by Samuel Rae.

Tether Posts Strong Q2 Performance, Generates $1.5B Net Operating Profit, Maintains $4.11B Reserve Buffer, and Expands Gold Holdings to More Than 146 Tons

Tether International, S.A. de C.V., today published its attestation for Q2 of 2026, prepared by BDO, a top-five global independent accounting firm. The report confirms the accuracy of Tether’s Financial Figures and Reserves Report and provides an overview of the assets backing USD₮ as of June 30, 2026.

USD₮ issuance increased, with approximately $184.6 billion in tokens issued at the end of Q2, around $446 million higher than at the end of Q1 despite a decrease in the industry’s total market cap. USD₮’s resilience extended its market share to over 60% of the total stablecoin market. The results demonstrate the strength and resilience of Tether’s reserve strategy through significant volatility across gold and Bitcoin. 

Tether’s reserves continue to be centered on short-duration, high-quality liquid assets. Its net operating profit, led by U.S. Treasury and repo, reached approximately $1.50 billion for the quarter. The majority of reserves remain in U.S. government-backed instruments and short-term liquidity facilities, providing the liquidity needed to manage redemptions across different market conditions. As a result, the Company remained one of the world’s largest buyers and holders of U.S. Treasuries.

At the end of the quarter, Tether’s reserves exceeded its liabilities by approximately $4.11 billion, demonstrating the resilience of the Company’s reserve structure through sharp market volatility. Tether also reduced its secured lending exposure by approximately $2.38 billion (15%).

The Management of the Company asserts the following as of June 30, 2026:

The Company’s total assets amount to US$ 187,751,426,411 The Company’s total liabilities amount to US$ 183,641,897,215, of which US$ 183,622,105,630 relate to digital tokens issued The Company’s assets exceed its liabilities by US$4,109,529,196 “Q2 demonstrated the strength of Tether’s reserve strategy under real market pressure,” said Paolo Ardoino, CEO of Tether. “The assets that back some of Tether’s reserves were tested directly during the quarter. Through all of the volatility, USD₮ remained fully backed with our reserves still exceeding liabilities by $4.11 billion. Our net operating profit for the quarter was $1.50 billion, led by a strong U.S Treasury portfolio and repo performance. We remained one of the world’s largest buyers of U.S. Treasuries, reduced secured lending by $2.38 billion, and added 14 tons of physical gold. At the same time, our global user base continued to grow by more than 30 million users. These results show that Tether has the liquidity, discipline, and scale to remain resilient across market cycles while continuing to serve hundreds of millions of users around the world.”

USD₮ continues to serve as financial infrastructure for people and businesses across global markets. Tether remains focused on maintaining a liquid and diversified reserve structure capable of supporting that demand at scale. During the quarter, the Big Four audit process continued alongside the development of Tether’s broader technology and financial infrastructure ecosystem.

For more information, please refer to the latest Financial Figures and Reserves Report here

Key Takeaways Coca-Cola is using premium beverages to target higher-value occasions and support long-term revenue growth.fairlife sales rose 18% y/y in the quarter as Coca-Cola expanded capacity ahead of further innovation.Mini cans, varied pack sizes and affordability efforts help KO balance premiumization with volume growth. The Coca-Cola Company's (KO - Free Report) premium beverage strategy is emerging as a meaningful driver of long-term revenue growth by enabling the company to capture higher-value consumption occasions while preserving affordability across its portfolio. In the second-quarter 2026 earnings call, management emphasized that its revenue growth management (RGM) framework is balancing premiumization with value offerings, allowing the company to address diverse consumer needs in an uneven macroeconomic environment.

The company continues to premiumize its portfolio through innovation and brand expansion. Management highlighted the global rollout of the redesigned Coca-Cola Zero Zero following encouraging demand in Europe, positioning the brand to capture evening consumption occasions — an underpenetrated opportunity. At the same time, premium brands such as fairlife remain powerful growth engines. The fairlife brand recorded 18% y/y sales growth in the quarter, with Coca-Cola expanding production capacity to improve product availability before introducing further innovations.

Premiumization is also supported by disciplined packaging and pricing strategies. In North America, Coca-Cola is leveraging mini cans and multiple pack sizes to serve different consumption occasions while maintaining premium positioning and value perception. Management stressed that today's consumers seek value rather than simply low prices, making the right product and package mix increasingly important.

Coca-Cola is not pursuing premiumization at the expense of volume growth. The company continues to balance affordability initiatives with premium offerings across markets, particularly in developing regions such as India, where investments are aimed at expanding the consumer base while simultaneously building premium brands for the future.

With a diversified portfolio, disciplined RGM execution and continued innovation, Coca-Cola appears well-positioned to leverage premium beverages as a key contributor to sustainable revenue and margin expansion in the long term.

Is Premiumization the Key for KO Peers: PEP & MNST?Premiumization has become a major growth lever across the beverage industry, with PepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) leveraging innovation and premium offerings to boost sales and profitability.

PepsiCo is strengthening its premiumization strategy by expanding functional, zero-sugar and experience-led beverage offerings to capture higher-value consumption occasions. The company highlighted strong momentum in functional hydration brands like Gatorade and Propel, continued gains in Pepsi Zero Sugar and new premium innovations such as Pepsi "House of Treats" crafted beverages. Alongside portfolio evolution, PepsiCo is investing in functional and permissible products while expanding away-from-home channels to support sustainable revenue growth and enhance brand value.

Monster Beverage is leveraging premiumization through product innovation, premium energy drinks and expanded consumption occasions to support revenue growth. Management highlighted strong performance from its Zero Sugar portfolio, Juice Monster and launches such as FLRT and Storm, while emphasizing a robust innovation pipeline that strengthens the core brand. The company also continues to balance premium offerings with affordable brands, broadening its appeal across consumer segments and global markets.

Zacks Rundown for Coca-ColaKO shares have rallied 12.7% in the past three months compared with the industry’s growth of 6.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 26.12X, higher than the industry’s 19.92X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 9% and 6.9%, respectively. Earnings estimates for 2026 and 2027 have moved up by a penny in the past seven days.

Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices (NASDAQ: AMD | AMD Price Prediction) has been one of the loudest AI stories of 2026. Even after a brutal week of profit taking, Wall Street is being too cautious.

AMD trades at $429.56 as of July 29, 2026, and our 24/7 Wall St. price target is $563.35, implying 31.15% upside over the next 12 months. Our recommendation is buy, with confidence at 90%.

  24/7 Wall St. Price Target Summary Metric Value Current Price $429.56 24/7 Wall St. Price Target $563.35 Upside 31.15% Recommendation BUY Confidence Level 90% A Wild Ride to a $700 Billion Market Cap AMD is up 100.58% year to date and 142.09% over the past year. The last week stripped out 22.23%, dropping the stock from $552.33 to 2%. Shares sit only $584.73 below the 52-week high. The recent Anthropic deal locking up 2 gigawatts of AI demand adds to catalysts including 6 gigawatts each with OpenAI and Meta.

Fundamentals validate the run. Q1 2026 revenue of $10.253 billion beat expectations by 3.41% and grew 37.85% year over year, with Data Center up 57% to $5.775 billion. Non-GAAP EPS of $1.37 beat by 5.88%, and management guided Q2 to roughly $11.2 billion, or 46% YoY growth.

The Case for $629 and Beyond Our bull case points to $629.11, a 46.45% return. Lisa Su told investors “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations”.

The pipeline backs her up: Meta’s 6 GW deployment with custom MI450 silicon, OpenAI’s 6 GW commitment, and Oracle’s 27,000-plus node cluster using MI355X. Free cash flow surged 252.96% YoY to $2.566 billion in Q1 alone. Prediction markets peg the odds of AMD beating next earnings at 82.5%.

What Could Go Wrong Our bear case lands at $434.63, barely above today’s price. AMD trades at a trailing P/E of 164 and a forward P/E of 69, both rich even for AI. Export controls on MI308 shipments to China created roughly $440 million in FY2025 net charges.

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TSMC dependency, tariffs, and NVIDIA’s entrenched AI GPU lead remain real risks. Most bear items are known, and AMD has beaten revenue every quarter over the last year while margins expanded 170 bps YoY.

How AMD Compares to NVIDIA and Intel NVIDIA (NASDAQ: NVDA) is the incumbent AI GPU king. NVIDIA trades at a trailing P/E of roughly 38 with Q1 FY2027 revenue of $81.6 billion, up 85.2% YoY. On a forward multiple basis NVIDIA is cheaper than AMD (69 forward P/E) despite higher growth. AMD trades on the second-derivative story: hyperscalers diversifying away from a single supplier. If MI450 ships on time, the multiple gap narrows quickly.

Intel (NASDAQ: INTC) is the direct x86 server competitor. Intel’s Q2 2026 revenue of $16.13 billion beat by 11.64%, but Data Center and AI at $6.26 billion still trails AMD despite Intel’s larger installed base. Intel Foundry lost $2.1 billion in the quarter. AMD’s fabless model and superior EPYC share momentum make the peer group look supportive at our $563 target.

I’d Be a Buyer Here Our 24/7 Wall St. price target of $563.35 reflects a buy at 90% confidence. The tipping factor is visibility Lisa Su called out: multi-gigawatt customer commitments stretch into 2027 and beyond.

I’d be a buyer if MI450 volume shipments arrive on schedule in H2 2026 and Data Center growth stays above 40% YoY. I’d stay on the sidelines if China export policy tightens or Q2 Data Center revenue slips below the $6.25 billion threshold that prediction markets price at 93% probability.

Year 24/7 Wall St. Price Target 2026 $563.35 2027 $655 2028 $755 2029 $845 2030 $932.91 These projections assume AMD executes on its MI450 and 6th Gen EPYC roadmap. Significant upside or downside could result from AI capex normalization, China export restrictions, or share shifts in the accelerator market.

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Contact [email protected] for any questions or corrections.

Key Takeaways AMD expects Q2 revenues of $11.2B, implying 46% year-over-year growth at the midpoint.Data Center growth is expected to reflect strong demand for EPYC processors and Instinct AI accelerators.A stretched valuation and competition from NVIDIA, Broadcom and Intel remain key concerns. Advanced Micro Devices (AMD - Free Report) is set to release its second-quarter 2026 results on Aug. 4.

AMD expects second-quarter 2026 revenues of $11.2 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of 46% and 9% sequential growth.

The Zacks Consensus Estimate for AMD’s second-quarter revenues is pegged at $11.32 billion, suggesting year-over-year growth of 47.3%. The consensus mark for second-quarter 2026 earnings is pegged at $1.61 per share, up by a penny over the past 30 days. The earnings estimate indicates growth of 235.42% on a year-over-year basis.

Consensus Estimate Trend
Image Source: Zacks Investment Research

AMD beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 6.5%.
 

Let’s see how things have shaped up for the upcoming earnings announcement.

Factors to Note Ahead of AMD’s Q2 ResultsAMD’s second-quarter 2026 results are expected to have been driven by continued strength in its Data Center business. Accelerating demand for EPYC server processors and Instinct AI accelerators is expected to have driven top-line growth. Strong inference workloads, increasing enterprise AI deployments and higher cloud spending likely boosted shipments of Instinct GPUs, while expanding adoption of fifth-generation EPYC processors across hyperscale and enterprise customers is expected to have supported server CPU revenues. AMD has highlighted improving customer engagement for the upcoming MI450 accelerator family and Helios AI rack platform, indicating robust AI infrastructure demand.

AMD is likely to have benefited from broader deployment across leading cloud providers during the quarter. Expanded EPYC-powered instances at AWS, Microsoft Azure, Google Cloud and Tencent, along with collaborations involving Meta, Samsung, Tata Consultancy Services, NAVER Cloud and Upstage, are expected to have strengthened AI infrastructure revenues. Meta’s planned deployment of AMD Instinct GPUs and adoption of next-generation EPYC processors, together with growing sovereign AI projects and strong MLPerf benchmark performance, likely reinforced customer confidence and accelerated design wins during the to-be-reported quarter.

AMD’s Client segment is expected to have benefited from sustained demand for Ryzen processors and expanding AI PC adoption. Commercial refresh cycles, enterprise deployments of Ryzen AI PRO processors and increasing Copilot+ PC launches are likely to have supported notebook and desktop processor shipments. Continued market share gains in premium consumer PCs, together with demand for high-end Ryzen X3D processors targeting gaming and creator workloads, are expected to have contributed to the revenue growth in the to-be-reported quarter. Meanwhile, Embedded revenues are likely to have remained stable as industrial and edge AI demand continued improving across multiple end markets.

However, AMD continues to face stiff competition from NVIDIA (NVDA - Free Report) , Broadcom (AVGO - Free Report) and a resurgent Intel (INTC - Free Report) . AMD continues to face intense competition in AI accelerators and server processors from NVIDIA in AI GPUs and Intel in CPUs. Intel is aggressively working to regain server market share through its expanding Xeon roadmap, Intel Foundry and advanced packaging technologies. Broadcom is increasing competitive pressure on AMD by strengthening its position in custom AI accelerators and high-performance networking for hyperscale customers. The intensifying competition is expected to have hurt AMD’s top-line growth and margin expansion prospects in the second quarter of 2026.

AMD Stock Outperforms Sector, Valuation StretchedAdvanced Micro Devices shares have surged 128.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 6.9%. The company’s shares have underperformed Intel but outperformed NVIDIA and Broadcom, YTD. Shares of Intel, Broadcom and NVIDIA have appreciated 150.5%, 12.1% and 4.8%, respectively.

AMD’s Share Price Performance
Image Source: Zacks Investment Research

The AMD stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month price/sales, AMD is currently trading at 12.35X, higher than the sector’s 6.01X, Broadcom’s 11.26X, NVIDIA’s 10.17X and Intel’s 7.01X.

AMD Stock’s Valuation
Image Source: Zacks Investment Research

AMD Rides on Strong Portfolio Amid Stiff CompetitionAMD's long-term growth outlook remains supported by its expanding Instinct GPU roadmap, including the MI450 series and Helios rack-scale AI systems. The company is increasingly offering full-stack AI infrastructure that combines CPUs, GPUs, networking and software, enabling it to compete for large AI clusters at hyperscalers and enterprise customers. Increasing cloud adoption, enterprise digital transformation, telecommunications infrastructure and edge computing are expected to provide sustained demand for AMD’s server CPU. The introduction of sixth-generation EPYC processors and expanding partnerships with major cloud providers should further strengthen AMD’s competitive position over the long term.

Beyond data centers, AMD is expanding AI capabilities across PCs, embedded computing, industrial automation, networking and telecommunications. The company’s growing portfolio of Ryzen AI processors, adaptive computing products and embedded AI solutions broadens its addressable market while reducing dependence on any single end market. Continued investments in AI software and ecosystem partnerships further enhance AMD’s long-term competitive position.

Nevertheless, AMD faces stiff competition, which keeps investors on edge. NVIDIA remains AMD’s biggest competitor in AI accelerators through its unmatched full-stack AI platform. The company continues to expand beyond GPUs by integrating Blackwell GPUs, Grace and upcoming Vera CPUs, NVLink networking, Spectrum-X Ethernet, InfiniBand and the CUDA software ecosystem into complete AI factory solutions. Broadcom focuses on custom XPUs, advanced networking silicon and long-term hyperscaler partnerships that enable customers to build AI infrastructure optimized for their own workloads. Intel is investing heavily in Intel 18A and 14A process technologies, EMIB-T advanced packaging and purpose-built AI silicon while leveraging its manufacturing scale to increase capacity.

ConclusionAMD enters its second-quarter 2026 earnings with strong momentum, supported by robust demand for EPYC server processors, Instinct AI accelerators and Ryzen AI PCs. Its expanding AI infrastructure portfolio, growing cloud partnerships and diversified presence across data centers, PCs, embedded computing and edge AI position the company well to capitalize on the long-term AI investment cycle. While fierce competition from NVIDIA, Broadcom and Intel is likely to remain a key challenge, AMD’s consistent execution, expanding product roadmap and strong customer adoption provide confidence in its long-term growth prospects.

AMD currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Altria expanded on! PLUS availability to 120,000 stores and highlighted smoke-free growth plans.MO raised 2026 adjusted EPS guidance to $5.61-$5.72 after strong first-half execution.Altria reported smokeable products adjusted OCI rose 2.4% with margin expanding to 64.8%. Altria Group, Inc. (MO - Free Report) used its second-quarter earnings call to highlight progress in smoke-free products, disciplined tobacco portfolio management and shareholder returns. Management narrowed its 2026 earnings outlook after strong first-half execution.

Executives focused on on! PLUS expansion, cigarette portfolio strategy and regulatory developments affecting nicotine categories. Analyst questions centered on consumer pressure, volume trends and the timing of second-half benefits.

MO Advances Smoke-Free PortfolioCEO Salvatore Mancuso said that Helix expanded on! PLUS availability to 120,000 stores nationwide and continued trial-generating activities. The company plans additional product extensions across nicotine strengths and flavors later in 2026.

Mancuso also said that nicotine pouches remain a key growth area, with the category representing nearly 60% of the oral tobacco category. He noted that on! retail share reached 8.6% in the second quarter.

Management also highlighted FDA actions affecting nicotine products. Mancuso said that increased regulatory clarity and enforcement against illicit products could support legal smoke-free alternatives.

Altria Balances Tobacco PortfolioAltria emphasized its total portfolio approach in smokeable products, using premium and discount brands to manage changing consumer behavior. Marlboro maintained its premium leadership while Basic gained traction among value-focused consumers.

The company reported smokeable products adjusted operating companies income increased 2.4% in the second quarter, supported by pricing and tax refund benefits. Adjusted OCI margin expanded to 64.8%.

Management said domestic cigarette volume declines moderated, with industry declines estimated at 5% after adjusting for trade inventory movements. Executives attributed the trend partly to reduced movement into illicit disposable e-vapor products.

MO Discusses Consumer PressuresDuring Q&A, a Stifel analyst asked about second-half expectations after Altria raised the lower end of guidance. Mancuso said that consumer financial pressure remains an important factor, including elevated inflation and gas prices.

Mancuso also addressed Cowboy Cut, saying the product provides another tool for engaging value-sensitive Marlboro smokers while supporting the broader revenue growth management strategy.

A Goldman Sachs analyst questioned cigarette volume trends and pricing dynamics. Management said that discount growth reflected consumer trade-down behavior, while premium remained the most profitable segment.

Altria Updates Financial OutlookAltria raised the lower end of its 2026 adjusted diluted EPS guidance range and now expects $5.61-$5.72, representing growth of 3.5-5.5% from the 2025 base.

Second-quarter adjusted EPS was $1.48, up 2.8% year over year, while revenues net of excise taxes increased 1.2% to $5.356 billion. The company’s adjusted EPS and revenues missed the Zacks Consensus Estimate of $1.5 and $5.362 billion, respectively.

CFO Heather Newman said that first-half performance reflected strong smokeable products execution and disciplined financial management. Altria returned nearly $3.9 billion to shareholders through dividends and share repurchases.

MO Highlights Capital AllocationMO continued shareholder returns during the quarter, including $1.8 billion in dividend payments and $55 million in share repurchases. The company had $665 million remaining under its current buyback authorization at quarter-end.

Management said that its balance sheet remained strong, with debt-to-EBITDA of 1.9X as of June 30. Executives reiterated their focus on maintaining shareholder value through capital returns.

Altria also discussed investment priorities, including increased capital expenditures tied to consolidating manufacturing operations. The company expects 2026 capital expenditures of $375-$450 million.

Altria Maintains Strategic FocusThe company’s leadership emphasized continued investment in smoke-free products while protecting profitability in traditional tobacco businesses. Management pointed to on! PLUS expansion and brand execution as key priorities.

Mancuso said competitive activity in nicotine pouches is increasing, but Helix is positioned with product differentiation and a broader portfolio. The company expects additional launches later in the year.

The quarter showed management balancing growth investments with near-term consumer challenges. Altria’s outlook reflects confidence in execution while recognizing pressure across nicotine categories.

MO’s Zacks SignalsMO carries Zacks Rank #2 (Buy) at present. The Zacks Rank is driven by earnings estimate revisions and is designed to help identify stocks with stronger potential performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a Value Score of C, a Growth Score of D, a Momentum Score of B and a VGM Score of D. The Zacks Style Score uses grades from A to F to measure value, growth, momentum and combined characteristics, with higher scores indicating stronger attributes.

The Zacks Rank and Style Score can change as analysts update earnings estimates and market conditions evolve following the latest results.

Ford Motor shares are under pressure. Why is F stock retreating? What Is Driving Ford’s Earnings Outlook?Ford’s latest update showed adjusted EPS of 42 cents beating expectations of 35 cents, even as revenue of $44.89 billion came in below the $45.81 billion consensus.

Management also lifted FY 2026 adjusted EBIT guidance to $10 billion-$11 billion (from $8.5 billion-$10.5 billion) and raised adjusted free cash flow guidance to $6 billion-$7 billion (from $5 billion-$6 billion).

Ford’s segment mix is part of the push-pull: Ford Blue revenue was $26.1 billion (up 1% YoY) while Model e revenue was $1 billion (down 56% YoY), and the quarter ended with $18.6 billion in cash and cash equivalents. The cash-flow picture was steadier, with $4.3 billion of cash flow from operations and $2.1 billion of adjusted free cash flow.details from the report.

Ford is also putting trade policy back on the tape, with CEO Jim Farley calling a revised USMCA "critical" and floating a "modest" 15% tariff lens aimed at improving competitiveness versus Japanese and South Korean automakers.

That policy angle matters for Ford because North American sourcing and cross-border parts flows can directly influence margin durability behind the company’s newly raised $10 billion-$11 billion EBIT guide.

Critical Price Levels To Watch For FordAt $14.47, the stock is trading 2% above its 20-day SMA ($14.22) but about 0.2% below its 50-day SMA ($14.53), a spot that often acts like a "decision zone" for trend traders. The bigger-picture trend still leans constructive with price 8.6% above the 100-day SMA ($13.35) and 8.7% above the 200-day SMA ($13.34).

Momentum looks more range-bound than stretched, with RSI at 53.66 sitting in neutral territory. RSI is a quick way to gauge whether buying or selling has become overdone, and this reading suggests neither side has clear control right now.

The moving-average structure is mixed: the 20-day SMA is below the 50-day SMA (a near-term bearish tilt), but the 50-day SMA remains above the 200-day SMA following the golden cross in June. From a level perspective, traders will likely watch whether the stock can reclaim the $15.00 area or whether dips start probing the $13.00 zone.

Key Resistance: $15.00 — a round-number area that sits just above the 50-day SMA ($14.53), where rebounds can stall Key Support: $13.00 — a nearby round-number level above the 200-day SMA ($13.34), where buyers may look to defend trend support Ford Stock Price Activity on FridayF Stock Price Activity: Ford Motor shares were down 2.49% at $14.49 at the time of publication on Friday, according to Benzinga Pro data.

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Key Takeaways McDonald's is expected to benefit from value offerings, menu innovation and promotional campaigns.MCD may see support from strong international sales, digital engagement and franchised operations.McDonald's carries a negative Earnings ESP ahead of its second-quarter earnings report. McDonald's Corporation (MCD - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4.

MCD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 0.7%.

Trend in the Estimate Revision of MCDThe Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $3.32, indicating a rise of 4.1% from $3.19 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $7.14 billion. The estimate suggests a rise of 4.3% from the year-ago quarter’s figure.

Factors Likely to Shape MCD’s Quarterly ResultsMcDonald's second-quarter 2026 revenues are likely to have benefited from the company's continued emphasis on value, which remained central to its growth strategy. The revamped McValue platform, featuring an everyday menu with items priced below $3 alongside affordable meal deals across multiple dayparts, is expected to have strengthened customer traffic, particularly among budget-conscious consumers. Management indicated that the enhanced value proposition was performing in line with expectations and was helping preserve market share despite a challenging consumer environment.

The company's marketing initiatives are also likely to have supported the top line. While April faced difficult comparisons against last year's successful Minecraft promotion, McDonald's entered the remainder of the quarter with a strong promotional calendar. Partnerships such as the Netflix-themed KPop Demon Hunters campaign and preparations for the FIFA-related activation are expected to have kept customer engagement high. These culturally relevant campaigns, combined with continued digital activation through the McDonald's app, likely helped sustain traffic across key markets.

Menu innovation may have been another important growth driver during the quarter. The nationwide rollout of McCafe beverages, including Refreshers and crafted sodas in the United States, alongside successful beverage platform launches in Germany and Canada, likely generated incremental demand. In addition, limited-time offerings across the beef and chicken categories, including the Big Arch burger and Hot Honey campaign, are expected to have maintained momentum in core menu categories. International markets such as the U.K., Germany and Australia are also likely to have contributed through disciplined execution of value, marketing and menu innovation, supporting comparable sales and market share gains.

Our model predicts total U.S. and International Operated Markets sales to increase 1.5% and 8.1% to $2.73 billion and $3.68 billion, year over year, respectively.

McDonald's bottom line in the second quarter is likely to have been supported by solid sales leverage, the resilience of its predominantly franchised business model and disciplined cost management. Management highlighted that restaurant margins remained strong, while supply-chain partnerships and hedging programs are expected to have cushioned against inflation in food, paper and energy costs. In addition, lower-than-anticipated financial support for the Extra Value Meals program, continued full-margin promotional offerings and favorable foreign currency translation are expected to have provided additional support to earnings during the quarter.

What Our Model Unveils About MCDOur proven model does not conclusively predict an earnings beat for McDonald’s this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.

Earnings ESP for MCD: McDonald’s has an Earnings ESP of -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

McDonald’s Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks Poised to Beat on EarningsHere are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +20.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.

Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank of 3.

In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 6.8%.

Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.

In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.