Track market-moving stories before they get noisy

Eastman Chemical (EMN - Free Report) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.6 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.44%. A quarter ago, it was expected that this specialty chemicals maker would post earnings of $1.07 per share when it actually produced earnings of $1.09, delivering a surprise of +1.87%.

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

Eastman Chemical, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $2.51 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.16%. This compares to year-ago revenues of $2.29 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Eastman Chemical shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Eastman Chemical?While Eastman Chemical has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Eastman Chemical was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.81 on $2.38 billion in revenues for the coming quarter and $6.30 on $9.06 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Tronox (TROX - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This producer of titanium ore and titanium dioxide is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -39.3%. The consensus EPS estimate for the quarter has been revised 35% lower over the last 30 days to the current level.

Tronox's revenues are expected to be $848.78 million, up 16.1% from the year-ago quarter.

MasTec (MTZ - Free Report) came out with quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $2.19 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.37%. A quarter ago, it was expected that this utility contractor would post earnings of $0.98 per share when it actually produced earnings of $1.39, delivering a surprise of +41.84%.

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

MasTec, which belongs to the Zacks Building Products - Heavy Construction industry, posted revenues of $4.37 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.81%. This compares to year-ago revenues of $3.54 billion. The company has topped consensus revenue estimates four times over the last four quarters.

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

MasTec shares have added about 32.2% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for MasTec?While MasTec has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for MasTec was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.15 on $5.09 billion in revenues for the coming quarter and $9.58 on $18.44 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Heavy Construction is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Tutor Perini (TPC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This construction company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -3.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Tutor Perini's revenues are expected to be $1.56 billion, up 13.7% from the year-ago quarter.

In the latest trading session, Cava Group (CAVA - Free Report) closed at $66.44, marking a +1.65% move from the previous day. This move lagged the S&P 500's daily gain of 1.66%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 2.78%.

Prior to today's trading, shares of the Mediterranean restaurant chain had lost 18.08% lagged the Retail-Wholesale sector's gain of 0.61% and the S&P 500's loss of 1.49%.

Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. The company's earnings report is set to go public on August 11, 2026. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $353.31 million, reflecting a 25.91% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.49 billion, which would represent changes of 0% and +26.08%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% decrease. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 120.37. This indicates a premium in contrast to its industry's Forward P/E of 20.7.

It's also important to note that CAVA currently trades at a PEG ratio of 4.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 24% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

For the quarter ended June 2026, Camden (CPT - Free Report) reported revenue of $392.94 million, down 0.9% over the same period last year. EPS came in at $1.68, compared to $0.74 in the year-ago quarter.

The reported revenue represents a surprise of +0.33% over the Zacks Consensus Estimate of $391.65 million. With the consensus EPS estimate being $1.67, the EPS surprise was +0.6%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

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

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

Rental revenues: $348.7 million versus $390.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.1% change.Non-property income- Total: $15.86 million versus the three-analyst average estimate of $3.6 million.Non-property income- Interest and other income: $0.13 million versus the three-analyst average estimate of $0.68 million.Net Earnings per Share (Diluted): $0.18 versus the three-analyst average estimate of $0.14.Non-property income- Fee and asset management: $3.13 million versus the three-analyst average estimate of $2.3 million.Non-property income- Income/(loss) on deferred compensation plans: $12.6 million versus $0.92 million estimated by two analysts on average.View all Key Company Metrics for Camden here>>>

Shares of Camden have returned +0.6% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Apple says it has now topped 1.5 billion subscribers for its services business, up from 1 billion in January 2025. However, this segment of Apple’s business, which includes the Apple Store, AppleCare, music, video, and cloud services, was the only miss in what was otherwise a record-breaking quarter for the company’s hardware sales.

In Apple’s fiscal third quarter, the company reported $30.74 billion in services revenue, falling short of the $31.22 billion Wall Street analysts had expected. Combined with a miss in China, Apple’s stock tumbled over 4% in after-hours trading.

When asked to dive into what led to the decline in services revenue, Apple CFO Kevan Parekh pointed to several factors. Most notable, however, were the impacts on Apple’s cash cow, the App Store.

One factor contributing to the App Store’s performance in the quarter was a slowdown in mobile gaming. It also called out the App Store business model changes in certain countries, including the U.S.

The latter is a reference to Apple being under a court order that requires it to now allow app developers to process customer payments outside the App Store — and outside the reach of Apple’s commission. While Apple didn’t say to what extent this specific issue had impacted App Store revenue, it did remind investors that the matter will be heard by the Supreme Court for a final decision.

The company didn’t fully blame App Store issues for the services revenue miss. Other factors included foreign exchange, which Apple claimed was the main driver, as well as a comparison to prior quarters where Apple was raking in money from the success of its “F1” theatrical release.

Overall, the App Store still set a June quarter revenue record, Apple noted, but that total figure also includes revenue from Apple Ads, which have become a more significant part of Apple’s business, and recently expanded to Apple Maps.

Despite these issues — and other “headwinds” attributed to foreign exchange rates — Apple touted the potential for growing its services business in the future.

It noted the segment set an all-time revenue record in developed markets and a June quarter record in emerging markets. It also said the total services business saw double-digit revenue in the “vast majority” of markets Apple tracks.

“Our services continue to attract more customers, and we have now surpassed one and a half billion in paid subscriptions. Both transacting and paid accounts reached new all-time highs in the quarter, with double-digit growth for both in emerging markets,” said Parekh.

The company also shared that specific segments were doing particularly well, including Apple Ads, App Store, AppleCare, Apple Music, and Apple TV, which saw June quarter records, as well as cloud and payment services, which hit all-time highs. Apple TV additionally saw its viewership reach an all-time high in the quarter.

Apple also reminded investors of potential new services revenue streams, including the newer Creator Studio subscriptions and the upcoming bill-splitting features in Apple Cash, which could deepen customers’ engagement with Apple’s payments ecosystem.

This week’s launch of the Apple Upgrade program, in partnership with Klarna, could drive other increases in services revenue too, especially if it drives more people to buy an iPhone or other Apple device, adding services to their bill.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.

As the generative AI boom drives steep demand for hardware components, Apple and other hardware makers are facing what outgoing CEO Tim Cook calls “a hundred-year flood [on] memory pricing,” which is severely impacting the cost of producing iPhones, MacBooks, and other devices.

Apple described its recent earnings report as its “strongest June quarter ever,” with iPhone and Mac sales performing better than expected, growing 22% and 29%, respectively, year-over-year. Yet the company is bracing for memory shortages, known as RAMageddon, to get even worse. Apple’s biggest challenge is securing the advanced memory nodes used in its Apple silicon chips, which power the A-Series and M-Series processors used in iPhones and Macs.

“We continue to expect high levels of demand. However, with less flexibility in supply chain, we expect the impact from the supply constraints to increase significantly sequentially,” Cook said on Apple’s quarterly earnings call. “We’re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.”

Apple is evidently worried enough about supply shortages that it reported $11.1 billion in inventory, nearly double the $5.7 billion it reported last September. This marks a break from Cook’s long-held supply chain approach, which has emphasized minimizing how much inventory Apple has on hand.

These constraints led Apple to “reluctantly” raise the price of Macs and iPads last month, Cook added. Other companies that have raised hardware prices include Meta, Samsung, Microsoft, and Sony.

“We’re going to be scrambling on the supply side, essentially,” Cook said.

For the upcoming quarter, Apple is predicting revenue growth between 9% and 11% year-over-year. But in the last several quarters, Apple has maintained about 16% year-over-year growth. Of course, that worries investors — Apple stock dropped 6% in after-hours trading.

When Senior VP of Hardware Engineering John Ternus steps into the CEO role in September, the company could be facing a rough patch, but at least Apple isn’t alone in its supply struggles.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Amanda Silberling is a senior writer at TechCrunch covering the intersection of technology and culture. She has also written for publications like Polygon, MTV, the Kenyon Review, NPR, and Business Insider. She is the co-host of Wow If True, a podcast about internet culture, with science fiction author Isabel J. Kim. Prior to joining TechCrunch, she worked as a grassroots organizer, museum educator, and film festival coordinator. She holds a B.A. in English from the University of Pennsylvania and served as a Princeton in Asia Fellow in Laos.

You can contact or verify outreach from Amanda by emailing [email protected] or via encrypted message at @amanda.100 on Signal.

Amazon (AMZN - Free Report) came out with quarterly earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.83 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.73%. A quarter ago, it was expected that this online retailer would post earnings of $1.6 per share when it actually produced earnings of $1.56, delivering a surprise of -2.5%.

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

Amazon, which belongs to the Zacks Internet - Commerce industry, posted revenues of $200.61 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.77%. This compares to year-ago revenues of $167.7 billion. The company has topped consensus revenue estimates four times over the last four quarters.

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

Amazon shares have lost about 1.8% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Amazon?While Amazon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Amazon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.00 on $204.16 billion in revenues for the coming quarter and $8.93 on $826.27 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, MercadoLibre (MELI - Free Report) , is yet to report results for the quarter ended June 2026.

This operator of an online marketplace and payments system in Latin America is expected to post quarterly earnings of $8.69 per share in its upcoming report, which represents a year-over-year change of -15.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

MercadoLibre's revenues are expected to be $9.77 billion, up 43.9% from the year-ago quarter.

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Amazon CEO Andy Jassy. Andrej Sokolow/picture alliance via Getty Images Amazon's earnings on Thursday highlighted a surprising idea gaining traction across Silicon Valley: You don't need the best models to win in AI.

The company reported blockbuster results, including a 37% jump in revenue from Amazon Web Services. Those gains came from the cloud giant running many different AI models from leading providers such as Anthropic and OpenAI.

In contrast, Amazon's efforts to build its own models are in somewhat of a mess, as Business Insider reported earlier this week.

On Thursday, Amazon CEO Andy Jassy suggested this isn't a problem. During a call with analysts he said there won't be a single AI model that dominates the industry.

Instead, Jassy explained, customers increasingly want to use multiple leading models, a trend that's helped fuel the rapid growth of Amazon Bedrock, the company's platform for accessing foundation models.

"AWS and Amazon can have a wildly successful business without its own frontier model," Jassy said. "There is not going to be one model to rule the world."

This is a big change from what's been guiding much of the AI market since it exploded in 2022 on the back of ChatGPT. Companies have raced to develop the most powerful models, spending huge sums of money on training and other expensive development techniques.

Now, though, the race has evolved to be less about raw performance and more about building and running efficient models, so-called intelligence per dollar. This potentially suits Amazon more than some other AI rivals.

Amazon has never prioritized its own models. It did develop in-house offerings via the Nova range of models, but they struggled to come close to frontier.

More recently, the company has been overhauling its AI strategy, winding down most of the existing Nova line while shifting resources toward a new frontier-model initiative, Business Insider reported earlier this week.

Jassy's remarks suggest the company's long-term strategy is not to rely exclusively on its own models, but to make AWS the platform where customers can access the industry's leading AI systems — whether to not those come from Amazon.

Rather than trying to win solely on model performance, Amazon has focused on making Bedrock the centerpiece of it AI strategy. Last year, Jassy said AWS was "building Bedrock to be the biggest inference engine in the world" and predicted the service could eventually rival EC2, AWS's flagship cloud computing business.

During Thursday's call, Jassy said companies building AI applications want access to a wide range of models because different systems will surpass one another over time and excel at different tasks. That dynamic, he said, gives Bedrock a competitive advantage.

"If you're a company that's building important AI applications, you want to make sure that you have the ability to use all the available models," Jassy said. "They're going to each leapfrog each other at different times."

At the same time, Jassy made clear Amazon remains committed to developing its own AI models.

He said having a leading model would give the company greater control over costs for both its own consumer applications and AWS customers, while allowing Amazon to prioritize features important to customers and move faster without relying on outside providers.

Alexa, for example, has been reducing its reliance on Anthropic's costly models in favor of Amazon's own AI models to lower costs, Business Insider previously reported.

Jassy predicted that within the next few years there will be "at least a half dozen models that are comparably good to each other."

"They'll all be on Bedrock," he said, "and one of them will be ours."

Have a tip? Contact this reporter via email at [email protected] or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Eugene Kim You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals

Amazon Artificial Intelligence

Microsoft's new Xbox chief is looking to push the gaming unit's margin back in line with its rivals by next year and beat them on profitability by mid-2030.

"We will not live on past successes or be trapped by past failures," CEO Asha Sharma wrote in a Thursday message to staff members that CNBC viewed. "We will learn from both and put our energy into creating what players will love for decades."

Sharma, a former Instacart and Meta executive, replaced Phil Spencer as Xbox CEO in February. She has since appointed new leaders, lowered Game Pass subscription prices and announced layoffs and divestitures of four development studios. Sharma has put more emphasis on exclusive titles for the Xbox console, delighting gamers who have seen the subsidiary bring franchises to Sony's PlayStation.

On Wednesday, Xbox turned in a 10% quarterly revenue decline — the most sluggish performance since 2022 — even as its parent surpassed consensus in cloud infrastructure and productivity software. Microsoft stock spiked almost 16% on Thursday in its strongest session since 2008.

Sharma and Matt Booty, Xbox's chief content officer, said last month that they anticipated a 3% internal margin. Sony reported a 9.9% operating margin from game and network services in the latest fiscal year, while Nintendo's approached 16%.

The Xbox Series X and Series S consoles have lagged behind the Nintendo Switch and Sony PlayStation 5 in terms of shipments.

Sharma wrote in her Thursday memo that Xbox will make every function and studio responsible for the gaming group getting back to growth in terms of number of players and revenue in the new fiscal year that ends in June 2027.

"We will build long-term plans for our biggest franchises across film, television, consumer products, sponsorship, live experiences, and form new partnerships globally, including China," she wrote.

Read more CNBC tech newsAmazon posts 'booming' cloud growth, hikes 2026 capex to $220 billionApple earnings: Revenue tops estimates, but supply constraints weigh on guidanceChina's open-weight model lead exposes America's AI blind spotNew details in the OpenAI Hugging Face hack show how far agents will go: 'It's now remarkably easy'Sharma also said she wants to see Xbox gain share in casual games, partly through Activision Blizzard's King, which puts out Candy Crush Saga games.

Microsoft placed a giant bet on gaming with the $75.4 billion acquisition of Call of Duty publisher Activision Blizzard in 2023. The deal boosted revenue, but the subsidiary became overextended. Consumers got to try new high-value Call of Duty releases for short periods through Game Pass for a small fee and leave without paying full price. Game Pass now excludes the first-person shooter titles.

Microsoft CEO Satya Nadella told analysts on the software maker's Wednesday earnings call that in gaming, the company is "making the necessary decisions required across our content portfolio, platform and operations to reset the business for long-term growth."

In 2014, Microsoft acquired Mojang, the developer of block-building game Minecraft, for $2.5 billion. It surpassed Tetris as the world's best-selling game five years later.

Sharma told employees in her note that the company would "invest in Minecraft more than ever before, strengthening the experiences players love while expanding the tools that help people create, share, build audiences, and earn."

Sharma wrote that revenue growth must speed up in the 2028 and 2029 fiscal years.

"By FY30, our ambition is to be halfway to our long-term daily-player goal with sustained double-digit growth in players and engagement and industry leading margins," she wrote.

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Phillips 66 (PSX - Free Report) closed at $210.60 in the latest trading session, marking a +1.83% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.66% for the day. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 2.78%.

The stock of oil refiner has risen by 18.52% in the past month, leading the Oils-Energy sector's gain of 5.33% and the S&P 500's loss of 1.49%.

Analysts and investors alike will be keeping a close eye on the performance of Phillips 66 in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. The company is expected to report EPS of $7.68, up 222.69% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $36.17 billion, indicating a 7.91% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $22.43 per share and a revenue of $146.24 billion, representing changes of +248.29% and +7.09%, respectively, from the prior year.

Any recent changes to analyst estimates for Phillips 66 should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 17.68% rise in the Zacks Consensus EPS estimate. At present, Phillips 66 boasts a Zacks Rank of #2 (Buy).

With respect to valuation, Phillips 66 is currently being traded at a Forward P/E ratio of 9.22. This signifies a premium in comparison to the average Forward P/E of 8.31 for its industry.

Meanwhile, PSX's PEG ratio is currently 0.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Refining and Marketing industry had an average PEG ratio of 0.21.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 19, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Earning the title of Dividend King puts you in elite company, as not every company has the financial stability to have increased its dividend payouts for 50 or more consecutive years. Some companies in that class are household names, like Coca-Cola and Walmart.

Enbridge (ENB +0.53%) isn't a household name, nor is it a Dividend King. But with 31 years of consecutive dividend hikes, it's on the path to becoming one, making it a name for investors seeking income to familiarize themselves with.

Image source: Getty Images.

Different energy resources, one powerful strategy Energy companies are sometimes overlooked as income investments, as stocks in the sector can be known for volatile price swings tied to commodity prices. That said, that's still a broad categorization of energy stocks.

Enbridge's all-of-the-above approach offsets some of the risk of being singularly focused on one energy solution through its broader portfolio. It also locks in long-term contracts, which helps it avoid commodity price swings.

Within that portfolio are its four main businesses: renewable energy, gas utilities and storage, natural gas pipelines, and liquid pipelines.

That helps it meet more specific needs, like it is doing with Meta Platforms. Meta has been working with Enbridge to power its data centers with solar energy, signing a 2025 contract to use all the solar energy produced by one of its facilities under construction in Texas. That relationship is also expanding, as Enbridge announced in May that it is working on a solar and battery energy storage project for another one of Meta's data centers in Wyoming.

With natural gas, Enbridge has over 50 potential opportunities with data centers on its radar. It's expected to pick which opportunities it wants to pursue in 2026 and 2027, so it'll be worth watching upcoming quarterly reports for updates. Its 2026 second-quarter earnings results are expected on July 31.

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Reliability as a dividend payer Enbridge provides critical energy services across North America, and establishing a crucial role helps ensure cash keeps flowing in to pay dividends. Not only is 30% of the crude oil produced in North America transported by Enbridge, but about 20% of the natural gas consumed in the U.S. is also transported by Enbridge.

One criticism often brought up about Enbridge, however, is that its large debt load could become increasingly expensive to service. The money that would usually go toward dividend payouts would instead possibly need to be used to pay lenders if Enbridge got into a financial crunch. But as often as the debt levels are mentioned when reviewing it as a dividend payer, it has still managed not only to pay a dividend for more than 70 years but also to increase it for 31 years. As of this writing, that dividend payout yields a favorable 5.1%.

One thing to note quickly is that Enbridge is based in Canada, so anyone analyzing it further should note that it reports in Canadian dollars. Also, the tax implications of holding Enbridge in a U.S. brokerage account differ and warrant research before making an investment decision.

Japan’s Crypto Overhaul Could Open the Door to a Wave of Institutional MoneyCoinbase Global NASDAQ: COIN executives said the company is pursuing growth through a broader product lineup, stablecoin partnerships, subscriptions and infrastructure initiatives, while maintaining its focus on trusted custody and expanding its Base blockchain ecosystem.

During the company’s second-quarter 2026 earnings call on X, Co-Founder and CEO Brian Armstrong and Chief Financial Officer Alesia Haas discussed U.S. crypto legislation, the renewal of Coinbase’s agreement with Circle, product cross-selling and the competitive landscape for blockchain networks.

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CLARITY Act Outlook Visa’s Open USD Push Puts Circle’s Stablecoin Moat Under PressureArmstrong said he remains optimistic that the CLARITY Act will receive a full vote in the U.S. Senate, citing ongoing negotiations and the approaching August recess as a potential catalyst for lawmakers to reach an agreement.

“There’s a lot of last-minute negotiations happening, which to me is a sign that everyone is invested in getting something over the line,” Armstrong said. He also credited Stand With Crypto advocates for sending more than 1 million emails and making phone calls to representatives.

As Stablecoins Keep Growing, These 2 Stocks BenefitStill, Armstrong said Coinbase would likely continue operating normally even if the legislation does not pass. He said the company already follows many practices that could be required under the proposed legislation. He also pointed to public statements from SEC Chair Paul Atkins and CFTC Chairman Michael Selig indicating that the agencies are prepared to develop clearer rules regardless of the bill’s outcome.

Armstrong said legislation would nevertheless provide greater durability across future administrations and support longer-term investment decisions. In his view, consumers would be more negatively affected than Coinbase if the act fails to become law.

Circle Agreement and Multi-Stablecoin Strategy Haas said Coinbase has met the conditions for its Circle contract to renew on the same terms. She said the company will continue working with Circle to expand the USDC ecosystem.

Coinbase’s participation in Open USD does not alter its support for USDC, Armstrong said. Instead, he described Coinbase as a “multi-stablecoin platform” that aims to offer the stablecoins customers want to use while pursuing economic arrangements with major issuers and networks.

The company already supports stablecoins including PayPal USD and Tether’s USDT, according to Armstrong. He said supporting additional stablecoins can create business and revenue opportunities, including in foreign-exchange trading.

Haas also addressed the company’s relationship with Hyperliquid, saying Coinbase wants institutional and retail customers to hold USDC on its platform and participate in available rewards programs. She said sharing economics with ecosystem participants can promote network effects and broader USDC adoption.

Armstrong said USDC is already the leading stablecoin by transaction volume and the largest regulated stablecoin globally. He said Coinbase intends to continue investing in USDC and sharing economics where appropriate in an effort to expand its position relative to other stablecoins.

Product Adoption, Marketing and Coinbase One Haas said Coinbase’s strategy begins with secure storage of customer assets, arguing that customers who store assets on the platform are more likely to transact and adopt additional services. The company’s growth marketing efforts are currently focused on products showing market demand, including prediction markets, crypto trading and newer derivatives offerings.

According to Haas, Coinbase generally targets a one-year payback period on growth marketing spending and has recently outperformed that benchmark. She said early data indicate that users engaging with prediction markets are also increasing spot trading activity, rather than shifting activity away from spot markets.

Armstrong said the company seeks to keep “all the shelves stocked” as it builds what he called an “everything exchange.” He cited prediction markets, perpetual futures, stock trading and potential future stock-options offerings as areas contributing to a more diverse trading-fee business.

On the subscription side, Haas said Coinbase recorded an all-time high in paid Coinbase One subscribers during the quarter, despite weaker crypto trading volumes. She said Coinbase One users tend to be highly engaged and use a wider range of company products and services.

Haas said Coinbase One subscribers, on average, trade more and generate higher unit economics than non-members. While zero-fee trading may shift revenue away from traditional trading-fee categories, she said subscribers also contribute through staking, card usage and other services. She characterized the overall customer relationship as accretive, supported by stronger retention and engagement.

Base, AI Agents and Competition Armstrong said Coinbase is preparing for a future in which artificial-intelligence agents increasingly function as customers and participants in financial markets. He said such agents will consider price and transaction speed but will also value reliable, secure, liquid and compliant infrastructure.

He said Base provides settlement for less than one cent and in under one second, while adding that Coinbase intends to “roll out the red carpet” for AI agents. Armstrong said the majority of agentic-finance transactions using USDC, Base and the x402 protocol are occurring through Coinbase’s ecosystem, although he said the company has no specific forecasts to share.

Addressing competition from companies developing their own blockchain networks, including Robinhood and Stripe, Armstrong said emerging markets often experience fragmentation before eventual consolidation. He compared the current blockchain landscape with stablecoins, where numerous new offerings have been introduced but USDC and Tether have retained the overwhelming share of the market.

Armstrong said Base remains the largest Ethereum layer-2 network and described it as a leader in spot-market liquidity, stablecoin transfer activity and agentic finance. He said Base processed roughly $32 trillion in stablecoin transfer volume over the prior 12 months. Coinbase will continue investing in Base and pursuing a path toward greater decentralization, he said.

Coinbase also sees demand for pre-initial-public-offering perpetual futures, Armstrong said. The company has begun offering the products to non-U.S. traders, with SpaceX as the first underlying private company. U.S. access is on the roadmap, though Armstrong did not provide a timetable.

About Coinbase Global (NASDAQ:COIN)Coinbase Global, Inc is a U.S.-based company that operates one of the largest cryptocurrency exchange platforms. Founded in 2012 by Brian Armstrong and Fred Ehrsam and headquartered in San Francisco, Coinbase provides technology and infrastructure to buy, sell, store and use a broad range of digital assets. The company became a public company through a direct listing on the NASDAQ in April 2021 and offers services tailored to both retail and institutional customers.

Coinbase's product portfolio includes its consumer trading platform, a self-custody mobile wallet, and institutional services such as custody, prime brokerage and execution tools.

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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Upstart Holdings, Inc. (UPST - Free Report) closed the most recent trading day at $27.03, moving +1.6% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.66% for the day. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 2.78%.

Shares of the company have depreciated by 25.57% over the course of the past month, underperforming the Finance sector's gain of 1.93%, and the S&P 500's loss of 1.49%.

Investors will be eagerly watching for the performance of Upstart Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. In that report, analysts expect Upstart Holdings, Inc. to post earnings of $0.58 per share. This would mark year-over-year growth of 61.11%. Meanwhile, our latest consensus estimate is calling for revenue of $354.89 million, up 37.93% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.25 per share and revenue of $1.43 billion, indicating changes of +29.31% and +36.53%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Upstart Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Upstart Holdings, Inc. holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Upstart Holdings, Inc. has a Forward P/E ratio of 11.81 right now. This signifies a premium in comparison to the average Forward P/E of 11.19 for its industry.

It's also important to note that UPST currently trades at a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.93.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Rivian Automotive (RIVN - Free Report) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.65. This compares to a loss of $0.8 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +27.69%. A quarter ago, it was expected that this a manufacturer of motor vehicles and passenger cars would post a loss of $0.6 per share when it actually produced a loss of $0.55, delivering a surprise of +8.33%.

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

Rivian Automotive, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $1.66 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.25%. This compares to year-ago revenues of $1.3 billion. The company has topped consensus revenue estimates four times over the last four quarters.

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

Rivian Automotive shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Rivian Automotive?While Rivian Automotive has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Rivian Automotive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.65 on $1.96 billion in revenues for the coming quarter and -$2.37 on $7.19 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Xos, Inc. (XOS - Free Report) , has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of +34.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Xos, Inc.'s revenues are expected to be $12.14 million, down 34% from the year-ago quarter.

Neurocrine Biosciences (NBIX - Free Report) came out with quarterly earnings of $2.85 per share, beating the Zacks Consensus Estimate of $2.26 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +26.11%. A quarter ago, it was expected that this biopharmaceutical company would post earnings of $1.68 per share when it actually produced earnings of $1.94, delivering a surprise of +15.48%.

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

Neurocrine, which belongs to the Zacks Medical - Drugs industry, posted revenues of $959 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.37%. This compares to year-ago revenues of $687.5 million. The company has topped consensus revenue estimates four times over the last four quarters.

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

Neurocrine shares have added about 27.5% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Neurocrine?While Neurocrine has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Neurocrine was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.47 on $1.01 billion in revenues for the coming quarter and $9.09 on $3.77 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Theravance Biopharma (TBPH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.

This biopharmaceutical company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +337.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Theravance Biopharma's revenues are expected to be $19.79 million, down 24.4% from the year-ago quarter.

Weyerhaeuser (WY - Free Report) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +116.67%. A quarter ago, it was expected that this timber and paper products company would post earnings of $0.04 per share when it actually produced earnings of $0.11, delivering a surprise of +175%.

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

Weyerhaeuser, which belongs to the Zacks Building Products - Wood industry, posted revenues of $1.87 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.03%. This compares to year-ago revenues of $1.88 billion. The company has topped consensus revenue estimates two times over the last four quarters.

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

Weyerhaeuser shares have added about 3.2% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Weyerhaeuser?While Weyerhaeuser has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Weyerhaeuser was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $1.76 billion in revenues for the coming quarter and $0.29 on $6.91 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Louisiana-Pacific (LPX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This home construction supplier is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -41.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Louisiana-Pacific's revenues are expected to be $683 million, down 9.5% from the year-ago quarter.

Uniti Group NASDAQ: UNIT reported record fiber infrastructure bookings and accelerated fiber construction in the second quarter of 2026, as management pointed to rising demand from hyperscalers, neocloud providers and other customers deploying artificial intelligence-related infrastructure.

Chief Executive Officer Kenny Gunderman said total fiber revenue increased 10% from a year earlier, while fiber infrastructure revenue rose 6%, in line with company expectations. He described the quarter as a record for new fiber infrastructure bookings, exceeding the prior record by nearly 30%.

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Management said demand was broad-based across its wholesale customer base. During the quarter, approximately 20% of fiber infrastructure bookings came from neocloud customers, 18% from superscalers, 10% from hyperscalers and 6% from fiber-to-the-home providers.

AI Demand Drives Wholesale Activity Gunderman said AI adoption is expanding the need for high-bandwidth, low-latency connectivity, with near-term applications including customer-service automation, cybersecurity and corporate-function automation. He said future uses such as robotics, autonomous driving and scientific research could require still greater network capacity.

Uniti is seeing increased demand for both dark fiber and lit wave services. More than half of second-quarter fiber infrastructure bookings were for waves, or lit capacity, rather than dark fiber. Gunderman said wave services were the largest individual product contributor to the company’s record booking level.

The company highlighted two large wave packages sold during the quarter: a 20-terabit package connecting a neocloud customer from a Tier 2 market data center to a large metro area, and an 18-terabit package sold to a superscaler from another Tier 2 market data center. Together, those transactions represented 96 400-gigabit waves, according to management.

Gunderman said Uniti’s current waves sales funnel represents roughly 1.3 petabytes of traffic, with most of that opportunity involving relatively new customers. He also said nearly 80% of the company’s hyperscaler business uses all or part of Uniti’s preexisting network, contributing to blended anchor lease-up cash yields of 37%, the company’s highest level to date.

During the question-and-answer session, Gunderman said hyperscaler projects generally involve new fiber construction, route interconnections or overbuilds and tend to emphasize dark fiber. By contrast, neocloud and superscaler customers are increasingly using lit capacity for inference workloads and compute services.

He said large dark-fiber agreements generally run for 10 to 20 years, while lit and wave contracts are typically shorter, often in the three- to five-year range and closer to three years in many cases. The company is focused on customer credit quality as it pursues these newer categories of customers, he said.

Kinetic Expands Fiber Footprint At Kinetic, Uniti’s consumer fiber business, the company passed an additional 141,000 homes with fiber during the quarter, its highest quarterly level on record. Kinetic ended the period with about 2.1 million homes passed with fiber, representing 46% of its consumer footprint.

Kinetic added 38,000 net fiber subscribers in the quarter, also a record, ending with 603,000 fiber subscribers. Total fiber subscribers increased 25% from the prior-year period, while consumer fiber revenue rose 19% year over year.

Fiber penetration reached 29%, up 90 basis points from a year earlier. Chief Financial Officer Paul Bullington said newer customer cohorts are achieving stronger penetration rates than earlier cohorts did at comparable stages, supporting management’s view that its 40% terminal penetration target is achievable and potentially conservative.

Uniti raised its 2026 target for incremental fiber homes passed by 25,000 and now expects to construct 475,000 to 525,000 new fiber homes during the year. The company expects to end 2026 with 2.33 million to 2.38 million homes passed with fiber, or more than 50% of the Kinetic footprint, and with 675,000 to 700,000 fiber subscribers.

Management expects Kinetic consumer fiber revenue of $635 million to $655 million for 2026, representing growth of roughly 25% to 30% from the prior year.

ARPU Pressure and Capital Spending Consumer fiber average revenue per user was affected during the quarter by new-customer volume, the timing of rate-plan adjustments and retention efforts, Bullington said. Uniti expects fiber ARPU to decline by low single digits year over year in the third quarter before stabilizing and rising by low single digits in the fourth quarter.

Kinetic President John Harrobin said the company’s longer-term forecast still calls for 2% to 3% annual ARPU growth beginning in 2027. He said Kinetic faces large cable competitors in less than 60% of its fiber territory, compared with a mid-80% to low-90% exposure cited for certain peers. The company is using different pricing tiers and customer cohorts to respond to competitive promotions while maintaining subscriber growth, he said.

Uniti increased its Kinetic net capital expenditure outlook by $100 million to approximately $1.27 billion at the midpoint. Bullington said the higher spending does not solely reflect the 25,000 additional homes in the 2026 construction target, as a substantial portion is being pulled forward to support 2027 expansion.

Harrobin said the company expects a modest increase in fiber-material costs beginning around mid-2027, which could place its cost per passing toward the upper end of its previously communicated range. However, he said Uniti does not expect to be affected by customer-premises-equipment memory-chip constraints because of long-term supply contracts, scale and flexibility across equipment models.

Outlook and Capital Structure On a pro forma basis, Uniti said second-quarter consolidated revenue declined 5% year over year and adjusted EBITDA fell 10%, primarily because of declines in Uniti Solutions and legacy copper and TDM services. Kinetic fiber-based revenue, including consumer and wholesale services, grew 12%, while fiber infrastructure revenue and adjusted EBITDA increased 10% and 20%, respectively.

For 2026, Uniti maintained midpoint expectations for Kinetic revenue of $2.145 billion and contribution margin of $905 million. It raised fiber infrastructure midpoint guidance to $1 billion of revenue and $575 million of contribution margin, citing strong hyperscale and AI-related activity.

The company expects Uniti Solutions to generate $700 million in revenue and $320 million in contribution margin at the midpoint. Consolidated guidance calls for approximately $3.655 billion of revenue, $1.475 billion of adjusted EBITDA and $1.525 billion of net capital expenditures.

Bullington cautioned that large dark-fiber sales can be uneven between quarters. Uniti expects limited large-deal contribution in the third quarter, with a significant portion anticipated in the fourth quarter, though some transactions could shift into early 2027 due to the timing of major construction projects.

Separately, Bullington said Uniti recently completed its second Kinetic asset-backed securities transaction, which is intended to help fund fiber construction over the next year and could support repayment of up to $500 million of secured debt through ongoing asset sale offers. The company also said it sees potential to monetize $500 million to $1 billion of non-core assets over the next 12 to 36 months, with minimal expected impact on adjusted EBITDA because many of those assets are underutilized or generate little cash flow.

About Uniti Group (NASDAQ:UNIT)Uniti Group Inc is a real estate investment trust that owns, operates and acquires communications infrastructure assets across the United States. Established in September 2015 through a spin-off from Windstream Holdings, Uniti Group focuses on leasing fiber, small cell networks, cell towers and related infrastructure to service providers, wireless carriers and other enterprises requiring high-capacity connectivity. The company's assets are designed to support the growing data demands of residential, business and governmental customers, with an emphasis on long-term contractual lease arrangements.

Uniti's portfolio encompasses an extensive fiber network that spans metropolitan and rural markets, as well as a portfolio of wireless towers and small cell nodes that facilitate mobile network densification and help carriers deploy 5G services.

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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Merit Medical (MMSI - Free Report) reported $418.84 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 9.5%. EPS of $1.19 for the same period compares to $1.01 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $404.67 million, representing a surprise of +3.5%. The company delivered an EPS surprise of +23.96%, with the consensus EPS estimate being $0.96.

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

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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

Geographic Sales- International: $166.79 million compared to the $165.5 million average estimate based on two analysts. The reported number represents a change of +7.3% year over year.Geographic Sales- United States: $252.05 million compared to the $239.59 million average estimate based on two analysts. The reported number represents a change of +11% year over year.Revenue- Therapeutic: $137.88 million compared to the $132.99 million average estimate based on five analysts.Revenue- Foundational: $280.96 million versus $271.69 million estimated by five analysts on average.View all Key Company Metrics for Merit Medical here>>>

Shares of Merit Medical have returned +16.4% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Edison International (EIX - Free Report) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +50.98%. A quarter ago, it was expected that this electric power provider would post earnings of $1.32 per share when it actually produced earnings of $1.42, delivering a surprise of +7.58%.

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

Edison International, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $4.36 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.65%. This compares to year-ago revenues of $4.54 billion. The company has topped consensus revenue estimates three times over the last four quarters.

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

Edison International shares have added about 31% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Edison International?While Edison International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Edison International was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.96 on $5.52 billion in revenues for the coming quarter and $6.13 on $18.98 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, NRG Energy (NRG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This power company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of -1.2%. The consensus EPS estimate for the quarter has been revised 2.5% higher over the last 30 days to the current level.

NRG Energy's revenues are expected to be $5.89 billion, down 12.6% from the year-ago quarter.

CompaniesJuly 30 (Reuters) - U.S. utility Alliant Energy (LNT.O), opens new tab beat Wall Street expectations for second-quarter adjusted profit on Thursday, as higher rates ​in Iowa and Wisconsin and demand from ‌data centers outweighed higher costs and effects of warmer weather.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

U.S. power consumption, which hit its second straight annual record high in ​2025, will rise further in 2026 and ​2027, the Energy Information Administration said.

U.S. electric utilities ⁠have been seeking to raise customer power bills, ​mainly to pay for power infrastructure upgrades, as the ​country's grid faces an onslaught of extreme weather and ballooning demand from the electrification of industries and data-center build out.

Regulated utilities ​use rate-case proceedings to determine the amount that ​customers need to pay for electricity, natural gas, private water ‌and ⁠steam services.

Alliant serves roughly 1 million electric and 427,000 natural gas customers in Iowa and Wisconsin.

The company expects 60% load growth by 2031; large customer load ​expected to materialize ​as forecast ⁠in 2026.

It affirmed 2026 earnings guidance range of $3.36 per share to $3.46 per share.

However, ​its total operating expenses rose to $786 million, ​while ⁠interest costs rose 15.3% to $143 million.

The company reported second-quarter earnings of 65 cents per share for the quarter ⁠ended ​June 30, compared with analysts' ​expectations of 59 cents per share, according to data compiled by LSEG.

Reporting ​by Varun Sahay in Bengaluru; Editing by Sahal Muhammed

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Q2'26 net sales of $532.6 million, an increase of 10% Y/Y Q2'26 net income of $26.8 million and earnings per diluted share of $1.55 Sales volumes increased 7% Y/Y primarily driven by new business wins across all segments Q2'26 non-GAAP net income of $37.9 million and non-GAAP earnings per diluted share of $2.19, a 28% increase Y/Y Delivered Q2'26 adjusted EBITDA of $85.2 million, a 13% increase Y/Y Increased quarterly dividend by approximately 4.3% and repurchased $24.2 million of shares in Q2'26; announced new $250 million stock repurchase program , /PRNewswire/ -- Quaker Houghton ("the Company") (NYSE: KWR), the global leader in industrial process fluids, announced its second quarter 2026 results today. 

Three Months Ended
June 30,

Six Months Ended
June 30,

($ in thousands, except per share data)

2026

2025

2026

2025

Net sales

$       532,550

$       483,400

$   1,013,029

$      926,314

Net income (loss) attributable to Quaker Chemical Corporation

26,835

(66,580)

46,504

(53,658)

Net income (loss) attributable to Quaker Chemical Corporation
common shareholders – diluted

1.55

(3.78)

2.68

(3.04)

Non-GAAP net income *

37,903

30,000

66,277

58,029

Non-GAAP earnings per diluted share *

2.19

1.71

3.82

3.29

Adjusted EBITDA *

85,166

75,479

157,696

144,527

*

Refer to the Non-GAAP Measures and Reconciliations section below for additional information

Second Quarter 2026 Consolidated Results

Net sales in the second quarter of 2026 were $532.6 million, an increase of 10% compared to $483.4 million in the second quarter of 2025. This increase was primarily driven by an increase in sales volumes of 7%, a favorable impact from foreign currency translation of 2%, and an improvement in selling price and product mix of 1%. The increase in sales volumes compared to the prior year was primarily the result of net new business wins across all segments.

The Company reported net income in the second quarter of 2026 of $26.8 million, or $1.55 per diluted share, compared to a net loss of $66.6 million, or $3.78 loss per diluted share, in the second quarter of 2025. Excluding non-recurring and non-core items in each period, the Company's non-GAAP net income and non-GAAP earnings per diluted share were $37.9 million and $2.19, respectively, in the second quarter of 2026 compared to $30.0 million and $1.71, respectively, in the second quarter of 2025. The Company generated adjusted EBITDA of $85.2 million in the second quarter of 2026, an increase of approximately 13% compared to $75.5 million in the second quarter of 2025, primarily driven by the increase in net sales, partially offset by higher SG&A expenses. See the Non-GAAP Measures and Reconciliations section below for additional information.

Joe Berquist, Chief Executive Officer and President, commented, "We achieved our fourth consecutive quarter of year-over-year profitability growth in Q2 2026, resulting in record adjusted EBITDA. Net sales increased 10% against prior year, driven by strong share gains and pricing during a period of significant raw material inflation. Volume growth reflected new business wins across all regions that exceeded the high end of our target range, while underlying markets were flat to slightly positive. Demand has remained steady against the backdrop of the conflict in the Strait of Hormuz, and we have observed selective areas of market growth. We experienced modest pre-buy activity from our customers early in the period in reaction to the conflict, with normal seasonal patterns returning by the end of the quarter. I'm proud of our team's ability to maintain reliable supply to our customers despite heightened volatility.

Looking ahead, we expect stable demand trends entering the third quarter with flat to slightly positive end markets throughout the remainder of the year. We anticipate gross margin percentage to stabilize in the third quarter in the range of second quarter gross margins as we work through the timing of raw material cost inflation, inventory movements and price recovery actions. Our pricing and cost initiatives have kept us on track to exit the year within our target gross margin range. We anticipate meaningful revenue and adjusted EBITDA growth in 2026 supported by continued share gains, disciplined cost management, and the resilience of our global network."

Second Quarter 2026 Segment Results

The Company's second quarter of 2026 operating performance for each of its three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific, is further described below. 

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net Sales *

Americas

$      236,513

$      221,062

$      450,241

$      434,773

EMEA

158,436

139,923

300,519

269,201

Asia/Pacific

137,601

122,415

262,269

222,340

Total net sales

$      532,550

$      483,400

$   1,013,029

$      926,314

Segment operating earnings *

Americas

$       57,241

$       58,976

$      111,188

$      117,438

EMEA

32,740

24,995

58,301

48,388

Asia/Pacific

36,559

28,715

70,835

54,645

Total segment operating earnings

$      126,540

$      112,686

$      240,324

$      220,471

*

Refer to the Segment Measures and Reconciliations section below for additional information

The following table summarizes the sales variances by reportable segment and consolidated operations in the second quarter of 2026 compared to the second quarter of 2025:

Sales volumes

Selling price &
product mix

Foreign
currency

Acquisition &
other

Total

Americas

4 %

1 %

2 %

— %

7 %

EMEA

7 %

4 %

2 %

— %

13 %

Asia/Pacific

10 %

1 %

1 %

— %

12 %

Consolidated

7 %

1 %

2 %

— %

10 %

Net sales in the Asia/Pacific segment increased 12% in the second quarter of 2026 compared to the same period in 2025, as a result of an increase in sales volumes, an increase in selling price and product mix, and a favorable impact of foreign currency translation. Net sales in the EMEA segment increased 13% in the second quarter of 2026 compared to the same period in 2025, due to an increase in sales volumes, an increase in selling price and product mix, and a favorable impact of foreign currency translation. Net sales in the Americas segment in the second quarter of 2026 increased 7% compared to the same period in 2025, due to an increase in sales volumes, an increase in selling price and product mix, and a favorable impact of foreign currency translation.

Underlying end market activity in the second quarter of 2026 was similar to prior year levels, while strong new business wins across all segments led to year-over-year volume growth compared to the prior year quarter. The increase in selling price and product mix in the second quarter of 2026 compared to the same period in 2025 reflects pricing actions taken to offset higher raw material costs, as well as changes in the mix of products and services, and the impact of our index-based customer contracts.

Consolidated net sales increased approximately 11% compared to the first quarter of 2026, driven by an increase in sales volumes and an increase in selling price and product mix across all segments.

Segment operating earnings increased in the EMEA and Asia/Pacific segments in the second quarter of 2026 compared to the prior year period primarily due to the improvement in net sales and an improvement in segment operating margins, partially offset by an increase in SG&A expenses. Segment operating earnings decreased in the Americas segment in the second quarter of 2026 compared to the prior year due to higher raw material costs and SG&A expenses, partially offset by an increase in net sales. Segment operating earnings increased in all three segments in the second quarter of 2026 compared to the first quarter of 2026, primarily driven by an increase in net sales in all three segments and improved operating margins in the EMEA segment, partially offset by a decrease in operating margins in the Asia/Pacific and Americas segments.

Cash Flow and Liquidity Highlights

Net cash provided by operating activities was $33.2 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $38.5 million for the same period in 2025. The Company's decrease in operating cash flow year-over-year primarily reflects higher net cash outflows from working capital, partially offset by improved operating performance and lower outflows from restructuring activities.

As of June 30, 2026, the Company's total gross debt was $876.1 million and its cash and cash equivalents was $155.1 million, which resulted in net debt of approximately $721.0 million. The Company's net debt divided by its trailing twelve months adjusted EBITDA was approximately 2.3x.

In the second quarter of 2026, the Company announced a new share repurchase program authorizing the Company to repurchase up to an aggregate of $250 million of Quaker Chemical Corporation common stock, which replaced the 2024 Share Repurchase Plan and has no expiration date. In the second quarter of 2026, the Company repurchased 170,568 shares for approximately $24.2 million.

Non-GAAP Measures and Reconciliations

The information in this press release includes non-GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, taxes on income before equity in net income of associated companies – adjusted, non-GAAP net income and non-GAAP earnings per diluted share. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they enhance a reader's understanding of the financial performance of the Company, facilitate a comparison among fiscal periods, and exclude items that management believes are not indicative of future operating performance or considered core to the Company's operations. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with GAAP. In addition, our definitions of EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, taxes on income before equity in net income of associated companies – adjusted, non-GAAP net income, and non-GAAP earnings per diluted share, as discussed and reconciled below to the most comparable GAAP measures, may not be comparable to similarly named measures reported by other companies. 

The Company presents EBITDA, which is calculated as net income attributable to the Company before depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies. The Company also presents adjusted EBITDA, which is calculated as EBITDA plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. In addition, the Company presents non-GAAP operating income, which is calculated as operating income plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. The Company also presents non-GAAP gross profit, which is calculated as gross profit plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. Additionally, the Company presents non-GAAP Adjusted EBITDA margin, non-GAAP operating margin, and non-GAAP gross margin, which are calculated as the percentage of adjusted EBITDA, non-GAAP operating income, and non-GAAP gross profit to consolidated net sales, respectively. The Company believes these non-GAAP measures provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry, as well as by management in assessing the operating performance of the Company on a consistent basis.

Additionally, the Company presents non-GAAP net income and non-GAAP earnings per diluted share as additional performance measures. Non-GAAP net income is calculated as adjusted EBITDA, defined above, less depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies, in each case adjusted, as applicable, for any depreciation, amortization, interest or tax impacts resulting from the non-core items identified in the reconciliation of net income attributable to the Company to adjusted EBITDA. Non-GAAP earnings per diluted share is calculated as non-GAAP net income per diluted share as accounted for under the "two-class share method." The Company believes that non-GAAP net income and non-GAAP earnings per diluted share provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry as well as by management in assessing the performance of the Company on a consistent basis.

As it relates to future projections for the Company as well as other forward-looking information contained in this press release, the Company has not provided guidance for comparable GAAP measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP measure because it is unable to determine with reasonable certainty the ultimate outcome of certain significant items necessary to calculate such measures without unreasonable effort. These items include, but are not limited to, certain non-recurring or non-core items the Company may record that could materially impact net income. These items are uncertain, depend on various factors, and could have a material impact on the U.S. GAAP reported results for the guidance period. 

The Company's reference to trailing twelve months adjusted EBITDA within this press release refers to the twelve-month period ended June 30, 2026 adjusted EBITDA of $312.4 million, which consists of (i) the six months ended June 30, 2026 adjusted EBITDA of $157.7 million, as presented in the non-GAAP reconciliations below, and (ii) the twelve months ended December 31, 2025 adjusted EBITDA of $299.2 million, as presented in the non-GAAP reconciliations included in the Company's fourth quarter and full year 2025 results press release dated February 23, 2026, less (iii) the six months ended June 30, 2025 adjusted EBITDA of $144.5 million, as presented in the non-GAAP reconciliations below. 

Certain of the prior period non-GAAP financial measures presented in the following tables have been adjusted to conform with current period presentation. The following tables reconcile the Company's non-GAAP financial measures (unaudited) to their most directly comparable GAAP (unaudited) financial measures (dollars in thousands unless otherwise noted, except per share amounts):

Non-GAAP Gross Profit and Margin Reconciliations

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Gross profit

$   189,204

$   171,723

$   365,939

$   332,983

Acquisition-related step-up inventory amortization

—

6,022

—

6,022

Gain on inventory and other adjustments

—

(3,604)

—

(3,604)

Non-GAAP gross profit

$   189,204

$   174,141

$   365,939

$   335,401

Non-GAAP gross margin (%)

35.5 %

36.0 %

36.1 %

36.2 %

Non-GAAP Operating Income and Margin Reconciliations

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Operating income (loss)

$     40,603

$   (52,510)

$     74,192

$    (24,886)

Acquisition-related step-up inventory amortization

—

6,022

—

6,022

Restructuring and related charges, net

8,116

8,793

15,497

23,383

Acquisition-related expenses

219

803

934

4,133

Gain on inventory and other adjustments

—

(3,927)

—

(3,927)

Business transformation costs

4,113

—

5,772

—

Impairment charges

—

88,840

—

88,840

Duplicate headquarter lease costs

564

—

886

—

Acquisition-related depreciation and amortization

1,586

1,681

3,194

1,681

Other charges

86

939

161

1,165

Non-GAAP operating income

$     55,287

$     50,641

$    100,636

$     96,411

Non-GAAP operating margin (%)

10.4 %

10.5 %

9.9 %

10.4 %

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and
Non-GAAP Net Income Reconciliations

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net income (loss) attributable to Quaker Chemical Corporation

$     26,835

$   (66,580)

$     46,504

$    (53,658)

Depreciation and amortization (a)

25,595

23,921

51,465

44,751

Interest expense

9,873

12,779

19,752

22,324

Taxes on income before equity in net income of associated
companies (b)

11,172

5,472

18,317

13,014

EBITDA

73,475

(24,408)

136,038

26,431

Equity income in a captive insurance company

(3,028)

(2,075)

(3,635)

(2,746)

Acquisition-related step-up inventory amortization

—

6,022

—

6,022

Restructuring and related charges, net

8,116

8,793

15,497

23,383

Acquisition-related expenses

219

803

934

4,133

Gain on inventory and other adjustments

—

(3,927)

—

(3,927)

Business transformation costs

4,113

—

5,772

—

Pension and postretirement benefit costs, non-service components

326

449

577

882

Impairment charges

—

88,840

—

88,840

Product liability claim reimbursement

(1,000)

—

(1,000)

—

Currency conversion impacts of hyper-inflationary economies

584

652

755

1,187

(Gain) loss on acquisition-related hedges

—

(592)

—

1,351

Gain on sale of assets

—

(357)

—

(2,534)

Debt modification and extinguishment costs

1,711

—

1,711

—

Duplicate headquarter lease costs

564

—

886

—

Other charges

86

1,279

161

1,505

Adjusted EBITDA

$     85,166

$     75,479

$    157,696

$    144,527

Adjusted EBITDA margin (%)

16.0 %

15.6 %

15.6 %

15.6 %

Adjusted EBITDA

$     85,166

$     75,479

$    157,696

$    144,527

Less: Depreciation and amortization (a)

25,595

23,921

51,465

44,751

Less: Interest expense

9,873

12,779

19,752

22,324

Less: Taxes on income before equity in net income of
associated companies - adjusted (b)

13,381

10,460

23,396

21,104

Plus: Acquisition-related depreciation and amortization

1,586

1,681

3,194

1,681

Non-GAAP net income

$     37,903

$     30,000

$     66,277

$     58,029

Three Months Ended
June 30,

Six Months Ended
June 30,

Non-GAAP Earnings per Diluted Share Reconciliations

2026

2025

2026

2025

GAAP earnings (loss) per diluted share attributable to Quaker
     Chemical Corporation common shareholders

$          1.55

$         (3.78)

$          2.68

$         (3.04)

Equity income in a captive insurance company

(0.18)

(0.12)

(0.21)

(0.16)

Acquisition-related step-up inventory amortization

—

0.25

—

0.25

Restructuring and related charges, net

0.34

0.38

0.66

1.00

Acquisition-related expenses

0.01

0.05

0.04

0.19

Gain on inventory and other adjustments

—

(0.16)

—

(0.16)

Business transformation costs

0.18

—

0.25

—

Pension and postretirement benefit costs, non-service components

0.01

0.02

0.02

0.04

Impairment charges

—

4.91

—

4.91

Product liability claim reimbursement

(0.04)

—

(0.04)

—

Currency conversion impacts of hyper-inflationary economies

0.03

0.04

0.04

0.07

(Gain) loss on acquisition-related hedges

—

(0.02)

—

0.06

Gain on sale of assets

—

(0.02)

—

(0.11)

Debt modification and extinguishment costs

0.08

—

0.08

—

Duplicate headquarter lease costs

0.03

—

0.04

—

Other charges

0.01

0.04

0.01

0.04

Discrete tax items

0.10

0.05

0.12

0.13

Acquisition-related depreciation and amortization

0.07

0.07

0.13

0.07

Non-GAAP earnings per diluted share

$          2.19

$          1.71

$          3.82

$          3.29

a.

Depreciation and amortization for the three and six months ended June 30, 2026 and 2025 each includes approximately $0.2 million and $0.5 million, respectively, of amortization expense recorded within equity in net income of associated companies in the Company's Condensed Consolidated Statements of Operations. This is attributable to the amortization of the fair value purchase accounting step-up in connection with the acquisition of the Company's 50% equity interest in Korea Houghton Corporation.

b.

Taxes on income before equity in net income of associated companies – adjusted includes the Company's tax expense adjusted for the impact of any current and deferred income tax expense (benefit), as applicable, of the reconciling items presented in the reconciliation of Net income attributable to Quaker Chemical Corporation to adjusted EBITDA, above, determined utilizing the applicable rates in the taxing jurisdictions in which these adjustments occurred, subject to deductibility. This caption also includes the impact of specific tax charges and benefits for the three and six months ended June 30, 2026 and 2025.

Segment Measures and Reconciliations

Segment operating earnings for each of the Company's reportable segments are comprised of the segment's net sales less directly related product costs and other segment items. Operating expenses not directly attributable to the net sales of each respective segment, such as certain corporate and administrative costs and restructuring charges, are not included in segment operating earnings. Other items not specifically identified with the Company's reportable segments include Interest expense and Other income (expense), net. 

The following table presents information about the performance of the Company's reportable segments (dollars in thousands):

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net Sales

Americas

$      236,513

$      221,062

$      450,241

$      434,773

EMEA

158,436

139,923

300,519

269,201

Asia/Pacific

137,601

122,415

262,269

222,340

Total net sales

$      532,550

$      483,400

$   1,013,029

$      926,314

Segment operating earnings

Americas

$       57,241

$       58,976

$      111,188

$      117,438

EMEA

32,740

24,995

58,301

48,388

Asia/Pacific

36,559

28,715

70,835

54,645

Total segment operating earnings

126,540

112,686

240,324

220,471

Restructuring and related charges, net

(8,116)

(8,793)

(15,497)

(23,383)

Impairment charges

—

(88,840)

—

(88,840)

Non-operating and administrative expenses

(60,203)

(50,860)

(115,290)

(101,577)

Depreciation of corporate assets and amortization

(17,618)

(16,703)

(35,345)

(31,557)

Operating income (loss)

40,603

(52,510)

74,192

(24,886)

Other income (expense), net

406

(653)

383

(1,362)

Interest expense

(9,873)

(12,779)

(19,752)

(22,324)

Income (loss) before taxes and equity in net income of
associated companies

$       31,136

$      (65,942)

$       54,823

$      (48,572)

Forward-Looking Statements

This press release contains "forward-looking statements" that fall under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Act of 1933, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. We have based these forward-looking statements on assumptions, projections and expectations about future events that we believe are reasonable based on currently available information, including statements regarding the potential effects of economic downturns; tariffs, including retaliatory tariffs, "trade wars" and uncertainty surrounding changes in tariffs; inflation and global supply chain constraints on the Company's business, results of operations, and financial condition; our expectation that we will maintain sufficient liquidity and remain in compliance with the terms of the Company's credit facility; expectations about future demand and raw material costs; and statements regarding the impact of increased raw material costs and pricing initiatives. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, intentions, financial condition, results of operations, future performance, and business, which may differ materially from our actual results, including but not limited to the potential benefits of acquisitions and divestitures, the impacts on our business as a result of global supply chain constraints and other macroeconomic stresses and uncertainties, including political and geopolitical events, civil disturbances and endemics/pandemics or extreme weather events and other natural disasters that may adversely affect regional economic conditions, and our current and future results and plans and statements that include the words "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "outlook," "target," "possible," "potential," "plan" or similar expressions. Such statements include information relating to current and future business activities, operational matters, capital spending, and financing sources. A major risk is that demand for the Company's products and services is largely derived from the demand for its customers' products, which subjects the Company to uncertainties related to downturns in a customer's business and unanticipated customer production slowdowns and shutdowns. Other major risks and uncertainties include, but are not limited to, inflationary pressures, including increases in raw material costs; supply chain constraints and the impacts of economic downturns; customer financial instability; high interest rates and their impact on our and our customers' business operations; the impacts from acts of war, terrorism and military conflicts, including those in Ukraine and the Middle East as well as economic and political actions taken by various government organizations; economic and political disruptions globally and the possibility of regime changes; the possibility of economic recession; legislative and regulatory developments including changes to existing laws and regulations, or the way they are interpreted, applied or enforced; tariffs, trade restrictions, and the economic and other sanctions imposed by other nations on Russia and Belarus and/or other government organizations; suspensions of activities in Russia by many multinational companies; foreign currency fluctuations; significant changes in applicable tax rates and regulations and the potential impacts therefrom, including those arising from H.R.1, commonly known as the "One Big Beautiful Bill Act"; other acts of violence; the impacts of consolidation in our industry, including loss or consolidation of a major customer; the effects of climate change, fires, or other natural disasters; and the potential occurrence of cyber-security breaches, cyber-security attacks and other technology outages and security incidents. Furthermore, the Company is subject to the same business cycles as those experienced by our customers in the steel, automobile, aircraft, industrial equipment, aluminum and durable goods industries. Our forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its operations that are subject to change based on various important factors, some of which are beyond our control. These risks, uncertainties, and possible inaccurate assumptions relevant to our business could cause our actual results to differ materially from expected and historical results. All forward-looking statements included in this press release, including expectations about future periods, are based upon information available to the Company as of the date of this press release, which may change. Therefore, we caution you not to place undue reliance on our forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, refer to the Risk Factors section, which appears in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent reports filed from time to time with the Securities and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

Conference Call

As previously announced, the Company's investor conference call to discuss its second quarter of 2026 performance is scheduled for Friday, July 31, 2026 at 8:30 a.m. ET. A live webcast of the conference call, together with supplemental information, can be accessed through the Company's Investor Relations website at investors.quakerhoughton.com. You can also access the conference call by dialing 877-269-7756. 

About Quaker Houghton

Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers include thousands of the world's most advanced and specialized steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process knowledge and customized services. With approximately 4,700 employees, including chemists, engineers and industry experts, we partner with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker Houghton is headquartered in Conshohocken, Pennsylvania, located near Philadelphia in the United States. Visit quakerhoughton.com to learn more.

Quaker Chemical Corporation

Condensed Consolidated Statements of Operations

(Unaudited; Dollars in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net sales

$      532,550

$      483,400

$   1,013,029

$      926,314

Cost of goods sold

343,346

311,677

647,090

593,331

Gross profit

189,204

171,723

365,939

332,983

Selling, general and administrative expenses

140,485

126,600

276,250

245,646

Impairment charges

—

88,840

—

88,840

Restructuring and related charges, net

8,116

8,793

15,497

23,383

Operating income (loss)

40,603

(52,510)

74,192

(24,886)

Other income (expense), net

406

(653)

383

(1,362)

Interest expense

(9,873)

(12,779)

(19,752)

(22,324)

Income (loss) before taxes and equity in net income of
associated companies

31,136

(65,942)

54,823

(48,572)

Taxes on income before equity in net income of associated
companies

11,172

5,472

18,317

13,014

Income (loss) before equity in net income of associated
companies

19,964

(71,414)

36,506

(61,586)

Equity in net income of associated companies

6,849

4,851

10,049

7,940

Net income (loss)

26,813

(66,563)

46,555

(53,646)

Less: Net (loss) income attributable to noncontrolling interest

(22)

17

51

12

Net income (loss) attributable to Quaker Chemical Corporation

$       26,835

$      (66,580)

$       46,504

$      (53,658)

Per share data:

Net income (loss) attributable to Quaker Chemical Corporation
common shareholders – basic

$          1.56

$         (3.78)

$          2.69

$         (3.04)

Net income (loss) attributable to Quaker Chemical Corporation
common shareholders – diluted

$          1.55

$         (3.78)

$          2.68

$         (3.04)

Basic weighted average common shares outstanding

17,109,417

17,572,447

17,217,771

17,605,920

Diluted weighted average common shares outstanding

17,199,666

17,592,971

17,299,282

17,630,541

Quaker Chemical Corporation

Condensed Consolidated Balance Sheets

(Unaudited; Dollars in thousands, except par value)

June 30,
2026

December 31,
2025

ASSETS

Current assets

Cash and cash equivalents

$      155,093

$      179,829

Accounts receivable, net

463,603

417,157

Inventories

304,110

265,776

Prepaid expenses and other current assets

68,242

58,428

Total current assets

991,048

921,190

Property, plant and equipment, net

314,596

313,423

Right-of-use lease assets

53,650

38,737

Goodwill

503,721

501,720

Other intangible assets, net

829,479

873,540

Investments in associated companies

105,906

106,915

Deferred tax assets

12,737

12,128

Other non-current assets

39,979

30,283

Total assets

$    2,851,116

$   2,797,936

LIABILITIES AND EQUITY

Current liabilities

Short-term borrowings and current portion of long-term debt

$        15,654

$       35,657

Accounts payable

234,319

198,929

Dividends payable

8,744

8,804

Accrued compensation

41,280

41,192

Accrued restructuring

8,807

8,351

Accrued pension and postretirement benefits

2,120

2,126

Other accrued liabilities

92,473

85,097

Total current liabilities

403,397

380,156

Long-term debt

857,790

834,901

Long-term lease liabilities

37,628

22,759

Deferred tax liabilities

131,314

140,814

Non-current accrued pension and postretirement benefits

20,159

20,615

Other non-current liabilities

20,229

22,192

Total liabilities

1,470,517

1,421,437

Equity

Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding

     June 30, 2026 – 17,212,963 shares; December 31, 2025 – 17,331,779 shares

17,213

17,332

Capital in excess of par value

855,896

874,826

Retained earnings

625,554

596,616

Accumulated other comprehensive loss

(121,488)

(115,661)

Total Quaker shareholders' equity

1,377,175

1,373,113

Noncontrolling interest

3,424

3,386

Total equity

1,380,599

1,376,499

Total liabilities and equity

$    2,851,116

$   2,797,936

Quaker Chemical Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited; Dollars in thousands)

Six Months Ended
June 30,

2026

2025

Cash flows from operating activities

Net income (loss)

$       46,555

$      (53,646)

Adjustments to reconcile net income (loss) to net cash provided by operating activities

Depreciation and amortization

51,011

44,278

Equity in undistributed earnings of associated companies, net of dividends

(3,596)

(44)

Deferred income taxes

(11,730)

(15,634)

Share-based compensation

6,888

6,903

Impairment charges

—

88,840

Restructuring and related charges, net

15,497

23,383

Inventory step-up amortization

—

6,022

Loss (gain) on disposal of property, plant and equipment and other assets

121

(2,108)

Other adjustments

(1,877)

(5,228)

Increase (decrease) in cash from changes in current assets and current liabilities, net of
     acquisitions:

Accounts receivable

(47,628)

3,022

Inventories

(40,685)

(11,826)

Prepaid expenses and other current assets

(10,450)

(3,943)

Accrued restructuring

(11,340)

(15,946)

Accounts payable and accrued liabilities

40,476

(25,551)

Net cash provided by operating activities

33,242

38,522

Cash flows from investing activities

Investments in property, plant and equipment

(21,018)

(20,289)

Payments related to acquisitions, net of cash acquired

—

(164,078)

Proceeds from disposition of assets

—

2,950

Other investing activities

2,249

697

Net cash used in investing activities

(18,769)

(180,720)

Cash flows from financing activities

Payments of long-term debt

(629,685)

(17,205)

Proceeds from long-term debt

800,000

—

Borrowings on revolving credit facilities

197,307

283,000

Payments on revolving credit facilities

(356,305)

(67,000)

Payments on other debt

—

(101)

Financing-related debt issuance costs

(6,232)

—

Dividends paid

(17,627)

(17,146)

Shares purchased under share repurchase programs

(24,181)

(32,693)

Other stock related activity

(1,755)

(1,301)

Net cash (used in) provided by financing activities

(38,478)

147,554

Effect of foreign exchange rate changes on cash

(731)

7,682

Net (decrease) increase in cash and cash equivalents

(24,736)

13,038

Cash and cash equivalents at the beginning of the period

179,829

188,880

Cash and cash equivalents at the end of the period

$      155,093

$      201,918

SOURCE Quaker Chemical Corporation

Q2'26 Banner Image , /PRNewswire/ --

"In a world of endless screens and AI-generated everything, the one thing that can't be copied is being there. More artists are on the road than ever — and fans keep choosing to be in the room with them, driving the strongest concert ticket sales we've ever seen. More than 143 million tickets have sold through mid-July, over 14 million ahead of last year's pace, with mid-teens ticket sales growth across all large venue types: stadiums, arenas, and amphitheaters.

None of this happens without the artists — they make these moments, and we're grateful to every artist and crew who trust us with their tours. This was a quarter of milestones: nearly 49 million fans attended our shows, Ticketmaster grew adjusted operating income 14%, and all-time-high deferred revenue points to a strong second half. The first-quarter legal accrual will weigh on reported operating income, but we remain on track for double-digit adjusted operating income growth this year — and to compound at that level for years to come."   –Michael Rapino, President and CEO

GLOBAL DEMAND FOR LIVE EVENTS DRIVES RECORD FAN GROWTH (2Q26 vs. 2Q25)

Revenue of $7.7 billion, up 9% Operating income of $522 million, up 7% Adjusted operating income (AOI) of $817 million, up 2% Concerts revenue grew 8%, while AOI reflected the timing of shows and continued investments in venues and festivals Ticketmaster results surpassed expectations, with AOI up 14% and 90 million fee-bearing tickets sold, up 8% Sponsorship AOI increased 13%, fueled by the international expansion of venues and festivals International markets powered growth across all segments: Drove attendance growth of 10%, adding approximately five million fans to a record 49 million globally Contributed 70% and 80% of Ticketmaster and Sponsorship AOI growth for the quarter, respectively ARTIST ACTIVITY GLOBALLY DRIVES HIGHEST 2Q CONCERTS ATTENDANCE (2Q26 vs. 2Q25 unless otherwise noted)

Revenue of $6.4 billion, up 8% Fan count of 49 million, up 10% International attendance at stadiums, arenas, and festivals all up over 20% U.S. attendance at amphitheaters and arenas up double digits, while stadium attendance declined due to show timing Underlying demand trends remain robust: Sell through rates across all U.S. large venue types remain at or above prior-year levels for shows through the end of 2Q Cancellation rates remain at historical levels Affordability remains a key priority, with low- to mid-single-digit price increases across stadiums, arenas, and amphitheaters, and U.S. get-in ticket price increases continuing to trail inflation over the past five years AOI of $310 million was down 14% due to the timing of stadium shows, venue pre-opening costs, and new international festivals Q2 ended with record event-related deferred revenue of $6.4 billion, up 25%, pointing to accelerating stadium and amphitheater activity in the second half Full-year fan attendance is now projected to grow 10%, with expected attendance at operated venues up double digits and third-party venues up high single digits For the full year, Concerts remains on track to deliver double-digit AOI growth, with the majority of the year-over-year improvement occurring in Q4, and continued margin expansion VENUE NATION DELIVERING MORE SHOWS AND ENHANCED HOSPITALITY FOR FANS GLOBALLY

Year-to-date, onsite food and beverage spending increased high single digits year-over-year at large U.S. amphitheaters and across European arenas and theaters Investments in premium experiences are driving strong returns: at newly opened amphitheaters, Morton and Mystic Lake, enhanced offerings are driving premium revenue nearly 75% higher than comparable amphitheaters Venue Nation on track to host close to 75 million fans in 2026, up double digits year-over-year, driven by an increase in show count from higher utilization of our existing venues and adding new venues 2026 pre-opening costs for all venues under development expected to be approximately $50 million, with current projects on track to achieve 20%+ IRRs Current pipeline of more than 25 large (over 3,000 seats) venues expected to open through the end of 2027, adding capacity for an incremental 15 million fans on a run rate basis LIVE EVENTS CONTINUE TO ATTRACT GROWING BRAND INVESTMENTS (2Q26 vs. 2Q25 unless otherwise noted)

Revenue of $383 million, up 12%, led by the strength of our international markets, up 17% AOI of $257 million, up 13% Brand demand remains broad-based, driven by our expanding venue portfolio and global festivals, which contributed 70% of the growth Number of strategic partners (over $1 million in revenue per year) increased over 20%, with associated revenue up double digits New ticket access partnership with Spotify's Reserved leverages Ticketmaster's platform to help more fans access tickets Sponsorship AOI expected to grow double digits for the year, with 95% of sponsorship commitments booked for 2026 Margins expected to be similar to last year DEMAND FOR CONCERTS FUELS HIGHEST 2Q FOR TICKETMASTER (2Q26 vs. 2Q25 unless otherwise noted)

Revenue of $852 million, up 15% AOI of $331 million, up 14% 90 million fee-bearing tickets sold, up 8% Concerts remained the primary growth driver with tickets sold up 11%, accounting for 90% of the ticket volume growth International markets sold 39 million tickets, up 12% with Gross Transaction Value (GTV) up 20% led by strong growth in South America North America secondary ticket volume was flat as growth in sports GTV offset a decline in concerts activity; this business now accounts for low double-digit portion of GTV, reflecting ongoing efforts to reduce scalper and bot activity Reported fee-bearing GTV up 15% to over $10 billion, led by concerts accounting for 90% of the growth 16 million net new tickets added year-to-date, with 85% from international markets as venues continue to choose Ticketmaster globally Q2 ended with deferred GTV of $5.2 billion, up 16%, and deferred service fee revenue of $390 million, up 23% Ticketmaster AOI positioned to grow mid-single digits for the full year, led by strong concert activity and expanding global client base Margins expected to be similar to last year CAPITAL ALLOCATION SUPPORTS VENUE EXPANSION AND LONG-TERM GROWTH 

Full year capital expenditures now projected to be $1.1 billion, toward the lower end of our initial range due to timing of projects: $800 million of total capital expenditures is for venue expansion and enhancement projects Approximately $200 million from funding by joint-venture partners, sponsorship agreements, and other sources will reduce venue cash requirements Additional capital expenditures focused on our ticketing and sponsorship growth initiatives, as well as ongoing maintenance at our venues Full year AOI to free cash flow—adjusted conversion expected to be in line with or higher than 2025 Free cash ended at approximately $2 billion compared to $1.7 billion last quarter, providing ample liquidity to invest in high-return projects FULL-YEAR INCOME STATEMENT DETAILS (vs. 2025)

Depreciation and amortization expected to grow 12-15% Net interest expense is expected to be approximately $280 million Corporate / Other and Eliminations expense expected to increase in line with AOI growth Income tax expense is expected to be 15-20% of AOI, with cash taxes projected to be 80% of that amount Below the line items: Noncontrolling interest expense is expected to be approximately $325 million for the full year and its growth will follow the timing of AOI growth. This projection may be further impacted by mark-to-market revaluations of investments with no impact to earnings per share, as any impact will be offset in other income and expenses Accretion expense is projected to be one-third of last year's, with continued strong performance at OCESA and other acquisitions 2026 share count not expected to change materially from 2025 Compare Our Operating Results to Past Quarters In The Trended Results Grid:
https://investors.livenationentertainment.com/financial-information/financial-results

The company will webcast a teleconference today, July 30, 2026, at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the "News / Events" section of the company's website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the "Financial Info" section of the website. A replay of the webcast will also be available on the Live Nation website. The link to the 2Q26 Trended Results Grid is provided above for convenience and such grid is not a part of, or incorporated into, this press release or any SEC filings that include this press release.

Notice Regarding Financial Statements
The company has provided certain financial statements at the end of this press release for reference. These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 to be filed with the Securities and Exchange Commission today and available on the SEC's website at sec.gov.

About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com.

FINANCIAL HIGHLIGHTS – SECOND QUARTER

(unaudited; $ in millions)

Q2 2026
Reported

Q2 2025

Reported

Change

Q2 2026
Currency
Impacts

Q2 2026 at
Constant
Currency

Change at
Constant
Currency

Revenue

Concerts

$     6,444.4

$       5,946.4

8 %

$     (56.3)

$     6,388.1

7 %

Ticketing

852.2

742.7

15 %

(14.6)

837.6

13 %

Sponsorship & Advertising

383.0

340.6

12 %

(6.4)

376.6

11 %

Other and Eliminations

(12.7)

(23.1)

*

0.0

(12.7)

*

$     7,666.9

$       7,006.6

9 %

$     (77.3)

$     7,589.6

8 %

Consolidated Operating Income

$        521.9

$         486.7

7 %

$     (12.9)

$        509.0

5 %

Adjusted Operating Income (Loss)

Concerts

$        309.6

$         358.7

(14) %

$       (5.0)

$        304.6

(15) %

Ticketing

331.0

290.1

14 %

(8.3)

322.7

11 %

Sponsorship & Advertising

256.9

227.6

13 %

(3.4)

253.5

11 %

Other and Eliminations

(5.7)

(6.8)

*

0.0

(5.7)

*

Corporate

(74.8)

(71.2)

(5) %

0.0

(74.8)

(5) %

$        817.0

$         798.4

2 %

$     (16.7)

$        800.3

0.2 %

* Percentages are not meaningful

FINANCIAL HIGHLIGHTS – SIX MONTHS

(unaudited; $ in millions)

6 Months
2026

Reported

6 Months
2025

Reported

Change

6 Months
2026

Currency
Impacts

6 Months
2026
Constant
Currency

Change at
Constant
Currency

Revenue

Concerts

$     9,219.9

$     8,430.5

9 %

$    (146.2)

$     9,073.7

8 %

Ticketing

1,617.2

1,437.4

13 %

(33.6)

1,583.6

10 %

Sponsorship & Advertising

641.6

556.6

15 %

(18.7)

622.9

12 %

Other and Eliminations

(18.8)

(35.7)

*

0.0

(18.8)

*

$    11,459.9

$    10,388.8

10 %

$    (198.5)

$    11,261.4

8 %

Consolidated Operating Income

$        151.4

$        601.4

(75) %

$       (0.2)

$        151.2

(75) %

Adjusted Operating Income (Loss)

Concerts

$        312.4

$        365.3

(14) %

$        4.0

$        316.4

(13) %

Ticketing

586.6

543.2

8 %

(14.9)

571.7

5 %

Sponsorship & Advertising

421.4

363.6

16 %

(12.8)

408.6

12 %

Other and Eliminations

(9.7)

(12.7)

*

(0.1)

(9.8)

*

Corporate

(122.7)

(119.9)

(2) %

0.0

(122.7)

(2) %

$     1,188.0

$     1,139.5

4 %

$     (23.8)

$     1,164.2

2 %

* Percentages are not meaningful

Reconciliation of Operating Income to Adjusted Operating Income

(unaudited; $ in millions)

Q2 2026

Q2 2025

6 Months 2026

6 Months 2025

Operating Income

$            521.9

$            486.7

$            151.4

$            601.4

Acquisition expenses

30.9

79.2

100.3

109.0

Amortization of non-recoupable ticketing contract advances

22.2

20.7

48.2

45.4

Depreciation and amortization

188.5

159.0

357.8

308.5

Gain on sale of operating assets

(8.5)

(0.9)

(14.5)

(3.1)

Astroworld loss contingencies

—

(7.8)

—

(7.8)

Governmental Investigations and Litigation

—

—

450.0

—

Stock-based compensation expense

62.0

61.5

94.8

86.1

Adjusted Operating Income

$            817.0

$            798.4

$          1,188.0

$          1,139.5

Reconciliations of Certain Non-GAAP Measures to Their Most Directly Comparable GAAP Measures

(unaudited; $ in millions)

Reconciliation of Free Cash Flow — Adjusted to Net Cash Provided by Operating Activities

($ in millions)

Q2 2026

Q2 2025

Net cash provided by operating activities

$              419.3

$              223.4

Changes in operating assets and liabilities (working capital)

281.4

387.8

Changes in accrued liabilities for Astroworld loss contingencies

—

(7.8)

Free cash flow from earnings

$              700.7

$              603.4

Less: Maintenance capital expenditures

(34.1)

(34.2)

          Distributions to noncontrolling interests

(150.7)

(131.1)

Free cash flow — adjusted

$              515.9

$              438.1

Net cash used in investing activities

$             (459.5)

$             (275.0)

Net cash provided by (used in) financing activities

$              190.6

$             (325.3)

Reconciliation of Free Cash Flow — Adjusted to Net Cash Provided by Operating Activities

($ in millions)

6 Months 2026

6 Months 2025

Net cash provided by operating activities

$               2,758.1

$               1,544.7

Changes in operating assets and liabilities (working capital)

(2,264.7)

(668.8)

Changes in accrued liabilities for Astroworld loss contingencies

—

(7.8)

Governmental Investigations and Litigation

450.0

—

Free cash flow from earnings

$                  943.4

$                  868.1

Less: Maintenance capital expenditures

(64.1)

(49.1)

          Distributions to noncontrolling interests

(188.7)

(164.8)

Free cash flow — adjusted

$                 690.6

$                 654.2

Net cash used in investing activities

$                (877.2)

$                (492.4)

Net cash provided by (used in) financing activities

$                 308.1

$                (498.5)

Reconciliation of Free Cash to Cash and Cash Equivalents

($ in millions)

June 30,
2026

June 30,
2025

Cash and cash equivalents

$               9,071.9

$               7,057.0

Short-term investments

65.6

57.6

Client cash

(1,927.3)

(1,703.2)

Deferred revenue — event-related

(6,411.8)

(5,140.3)

Accrued artist fees

(336.8)

(339.0)

Collections on behalf of others

(141.1)

(123.0)

Prepaid expenses — event-related

1,613.3

1,290.5

Free cash

$               1,933.8

$               1,099.6

Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to statements regarding deferred revenue pointing to a strong second half of 2026; expectations for full year adjusted operating income growth in 2026 as well as the expected growth level for years to come; anticipated accelerating stadium and amphitheater activity in the second half of 2026; projections for full year fan attendance in the company's Concerts business; anticipated adjusted operating income growth and margin expansion in the company's Concerts business for 2026; anticipated fan attendance for Venue Nation in 2026; anticipated 2026 pre-opening costs for all venues under development as well as anticipated IRRs for these projects; the company's current pipeline for Venue Nation and projected fan additions on a run rate basis; projected adjusted operating income growth and margin expectations for Ticketmaster in 2026; projected adjusted operating income growth and margin expectations for the company's Sponsorship business in 2026; capital allocation supporting venue expansion and long-term growth; projected full year 2026 capital expenditures; projected full year 2026 adjusted operation income to free cash flow—adjusted conversion; projected full year 2026 levels of depreciation and amortization, net interest expense, corporate / other and eliminations expense, income tax expense and cash taxes, noncontrolling interest expense and its timing; accretion expense, and share count.

Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company's plans, the risk that the company's markets do not evolve as anticipated, the potential impact of any economic slowdown and operational challenges associated with selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K, and Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided herein.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that we define as operating income (loss) before certain acquisition expenses (including ongoing legal costs stemming from the Ticketmaster merger, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. Due to the significant and non-recurring nature of the matters, we also exclude from AOI the impact of realized liabilities for settlements and expenses for regulatory compliance matters associated with the provision for losses arising from certain significant governmental investigations and litigations under ASC 450 - Contingencies, which are described under the heading "Governmental Investigations and Litigation" in Note 6 of the Notes to the Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Except as described above, ongoing legal costs associated with defense of these claims, such as attorney fees, are not excluded from AOI. We use AOI to evaluate the performance of our operating segments. We believe that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

AOI margin is a non-GAAP financial measure that we calculate by dividing AOI by revenue. We use AOI margin to evaluate the performance of our operating segments. We believe that information about AOI margin assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI margin is not calculated or presented in accordance with GAAP. A limitation of the use of AOI margin as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI margin should be considered in addition to, and not as a substitute for, operating income (loss) margin, and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI margin as presented herein may not be comparable to similarly titled measures of other companies.

Constant Currency is a non-GAAP financial measure when applied to a GAAP financial measure. We calculate currency impacts as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior period's currency exchange rates. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.

Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less changes in operating assets and liabilities, less maintenance capital expenditures, less distributions to noncontrolling interest partners. We use FCF among other measures, to evaluate the ability of operations to generate cash that is available for purposes other than maintenance capital expenditures. We believe that information about FCF provides investors with an important perspective on the cash available to service debt, make acquisitions, and for revenue generating capital expenditures. FCF is not calculated or presented in accordance with GAAP. A limitation of the use of FCF as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of our ability to fund our cash needs. Accordingly, FCF should be considered in addition to, and not as a substitute for, net cash provided by (used in) operating activities and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, FCF as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that we define as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and cash collected on behalf of others, plus event-related prepaids. We use free cash as a proxy for how much cash we have available to, among other things, optionally repay debt balances, make acquisitions and fund revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

June 30,
2026

December 31,
2025

(in thousands)

ASSETS

Current assets

    Cash and cash equivalents

$          9,071,949

$          7,094,200

    Accounts receivable, less allowance of $92,267 and $73,912, respectively

2,885,249

2,009,055

    Prepaid expenses

2,534,952

1,453,732

    Other current assets

463,499

417,405

Total current assets

14,955,649

10,974,392

Property, plant and equipment, net

3,963,993

3,415,771

Operating lease assets

1,866,814

1,869,753

Intangible assets

    Definite-lived intangible assets, net

1,205,988

1,078,453

    Indefinite-lived intangible assets, net

368,967

369,015

Goodwill

3,063,726

2,889,178

Long-term advances

743,830

631,071

Other long-term assets

2,011,859

1,684,900

Total assets

$        28,180,826

$        22,912,533

LIABILITIES AND EQUITY

Current liabilities

    Accounts payable, client accounts

$          2,254,652

$          1,941,389

    Accrued expenses and accounts payable

4,728,351

3,555,811

    Deferred revenue

7,334,511

4,461,959

    Current portion of long-term debt, net

2,968,381

587,630

    Other current liabilities

277,360

482,061

Total current liabilities

17,563,255

11,028,850

Long-term debt, net

6,233,084

7,612,018

Long-term operating lease liabilities

2,081,247

2,036,974

Other long-term liabilities

484,075

415,844

Commitments and contingent liabilities

Redeemable noncontrolling interests

1,063,602

924,472

Stockholders' equity

    Common stock

2,335

2,328

    Additional paid-in capital

1,389,093

1,455,925

    Accumulated deficit

(1,136,636)

(1,041,978)

    Cost of shares held in treasury

(30,396)

(30,396)

    Accumulated other comprehensive loss

(142,066)

(114,872)

Total Live Nation stockholders' equity

82,330

271,007

Noncontrolling interests

673,233

623,368

Total equity

755,563

894,375

Total liabilities and equity

$        28,180,826

$        22,912,533

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(in thousands except share and

per share data)

Revenue

$     7,666,858

$     7,006,641

$   11,459,887

$   10,388,758

Operating expenses:

Direct operating expenses

5,724,216

5,210,756

8,202,674

7,465,693

Selling, general and administrative expenses

1,134,965

1,003,344

2,096,484

1,782,266

Depreciation and amortization

188,459

159,025

357,755

308,480

Gain on disposal of operating assets

(8,516)

(856)

(14,538)

(3,058)

Corporate expenses

105,817

147,719

666,111

233,955

Operating income

521,917

486,653

151,401

601,422

Interest expense

97,230

72,048

187,752

152,391

Interest income

(42,709)

(37,893)

(82,176)

(71,954)

Equity in losses (earnings) of nonconsolidated affiliates

4,459

(4,268)

7,342

(4,747)

Other expense (income), net

(55,664)

36,380

(68,015)

39,333

Income before income taxes

518,601

420,386

106,498

486,399

Income tax expense

115,717

117,645

83,632

137,356

Net income

402,884

302,741

22,866

349,043

Net income attributable to noncontrolling interests

108,438

59,330

117,524

82,429

Net income (loss) attributable to common stockholders of Live Nation

$       294,446

$       243,411

$       (94,658)

$       266,614

Basic net income (loss) per common share available to common stockholders of Live Nation

$           1.06

$           0.41

$          (0.78)

$           0.09

Diluted net income (loss) per common share available to common stockholders of Live Nation

$           1.05

$           0.41

$          (0.78)

$           0.09

Weighted average common shares outstanding:

Basic

232,838,912

231,845,412

232,621,161

231,534,852

Diluted

244,036,331

234,417,428

232,621,161

234,658,608

Reconciliation to net income (loss) available to common stockholders of Live Nation:

Net income (loss) attributable to common stockholders of Live Nation

$       294,446

$       243,411

$       (94,658)

$       266,614

Accretion of redeemable noncontrolling interests

(46,544)

(147,801)

(87,823)

(245,895)

Net income (loss) available to common stockholders of Live Nation—basic

$       247,902

$        95,610

$      (182,481)

$        20,719

Convertible debt interest, net of tax

8,467

—

—

—

Net income (loss) available to common stockholders of Live Nation—diluted

$       256,369

$        95,610

$      (182,481)

$        20,719

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Six Months Ended June 30,

2026

2025

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$          22,866

$         349,043

Reconciling items:

Depreciation

221,063

183,804

Amortization of definite-lived intangibles

136,692

124,676

Amortization of non-recoupable ticketing contract advances

48,240

45,443

Deferred income taxes

7,537

25,129

Amortization of debt issuance costs and discounts

11,291

8,131

Stock-based compensation expense

94,808

86,097

Unrealized changes in fair value of contingent consideration

14,238

9,304

Equity in losses of nonconsolidated affiliates, net of distributions

14,167

8,774

Provision for uncollectible accounts receivable

18,974

13,539

Loss (gain) on mark-to-market of investments in nonconsolidated affiliates and crypto assets

(66,465)

133

Loss (gain) on forward currency exchange contracts

(15,167)

31,584

Other, net

(14,866)

(9,730)

Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:

Increase in accounts receivable

(855,217)

(622,765)

Increase in prepaid expenses and other assets

(1,215,956)

(822,523)

Increase in accrued expenses, accounts payable and other liabilities

1,507,529

225,791

Increase in deferred revenue

2,828,374

1,888,292

Net cash provided by operating activities

2,758,108

1,544,722

CASH FLOWS FROM INVESTING ACTIVITIES

Advances of notes receivable

(8,602)

(19,156)

Collections of notes receivable

8,085

17,784

Investments made in nonconsolidated affiliates

(42,223)

(14,492)

Purchases of property, plant and equipment

(598,502)

(434,207)

Cash paid for acquisition of right-of-use assets

—

(20,800)

Cash paid for acquisitions, net of cash acquired

(242,567)

(50,090)

Proceeds from sale of intangible assets

—

20,040

Other, net

6,600

8,495

Net cash used in investing activities

(877,209)

(492,426)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from debt, net of debt issuance costs

1,021,866

62,764

Payments on debt including extinguishment costs

(237,478)

(103,625)

Contributions from noncontrolling interests

27,829

11,264

Distributions to noncontrolling interests

(188,735)

(164,819)

Purchases of noncontrolling interests, net

(236,759)

(206,112)

Proceeds from exercise of stock options

5,057

3,443

Taxes paid for net share settlement of equity awards

(64,111)

(86,585)

Payments for deferred and contingent consideration

(18,552)

(14,399)

Other, net

(1,014)

(383)

Net cash provided by (used in) financing activities

308,103

(498,452)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(124,361)

409,647

Net increase in cash, cash equivalents and restricted cash

2,064,641

963,491

Cash, cash equivalents and restricted cash at beginning of period

7,106,986

6,106,109

Cash, cash equivalents and restricted cash at end of period

$       9,171,627

$       7,069,600

SOURCE Live Nation Entertainment

, /PRNewswire/ -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the third quarter of fiscal 2026.

"We continue to execute against our full-year objectives, and we are building momentum across several of our key growth areas," said Kevin Yeaman, President and CEO, Dolby Laboratories. "We are expanding our total addressable market and creating new opportunities with content partners through the Video Distribution Program and Dolby OptiView, and we continue to bring Dolby Atmos and Dolby Vision to more experiences from live sports, to music in the car, to user-generated content on mobile devices and more."

Third Quarter Fiscal 2026 Financial Highlights

Total revenue was $305 million, compared to $316 million for the third quarter of fiscal 2025. GAAP net income was $29 million or $0.30 per diluted share, compared to GAAP net income of $46 million or $0.48 per diluted share for the third quarter of fiscal 2025. On a non-GAAP basis, third quarter net income was $65 million or $0.69 per diluted share, compared to $76 million or $0.78 per diluted share for the third quarter of fiscal 2025. Dolby repurchased 1.2 million shares of its common stock for approximately $65 million. A complete listing of Dolby's non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release. 

Recent Business Highlights

The 2026 FIFA World Cup was shown in Dolby Atmos and/or Dolby Vision across broadcast, streaming, and pay TV, including Peacock and Comcast in the U.S., Bell TV in Canada, and TV GLOBAL in Brazil. On TVs, Dolby Vision 2 is now in market with some Hisense TVs, and by the end of this calendar year, TCL and Philips will also be shipping TVs with Dolby Vision 2.  RayNeo, the leading provider of augmented reality glasses, launched the RayNeo GT Max, the first AR smart glasses supporting Dolby Vision. Insta360, a leader in the action and panoramic cameras segments, launched the Luna Ultra, which supports Dolby Vision capture. Google announced support for Dolby Atmos through Android Auto with partners including BMW, Genesis, Mahindra, Mercedes, Renault, and Skoda. Roberts Communications Network, the largest horse racing streaming provider in the U.S., is using Dolby OptiView for ultra-low latency video streaming for horse racing. Access Advance announced that Meta Platforms, Inc., one of the world's largest distributors of video content, joined the VDP program as a licensee. Dividend

Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on August 19, 2026, to stockholders of record as of the close of business on August 11, 2026.

Stock Repurchase Program

Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $427 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.

Financial Outlook

Dolby's financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing herein due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby's future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see "Forward-Looking Statements" in this press release for a description of certain risks that Dolby faces, and the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, to be filed on or around the date hereof.

Dolby is providing the following estimates for its fourth quarter of fiscal 2026:

Total revenue is expected to range from $362 million to $392 million. Licensing revenue is expected to range from $335 million to $365 million.  Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis. Operating expenses are anticipated to range from $227 million to $237 million on a GAAP basis and from $195 million to $205 million on a non-GAAP basis. Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis. Diluted earnings per share is anticipated to range from $0.78 to $0.93 on a GAAP basis and from $1.13 to $1.28 on a non-GAAP basis. Dolby is providing the following estimates for the full year of fiscal 2026:

Total revenue is expected to range from $1.41 billion to $1.44 billion. Licensing revenue is expected to range from $1.31 billion to $1.34 billion.  Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis. Operating expenses are anticipated to range from $937 million to $947 million on a GAAP basis and from $785 million to $795 million on a non-GAAP basis. Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis. Effective tax rate is anticipated to be around 24% on a GAAP basis and around 21% on a non-GAAP basis. Diluted earnings per share is anticipated to range from $2.62 to $2.77 on a GAAP basis and from $4.25 to $4.40 on a non-GAAP basis. Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 30, 2026.

The conference call can be accessed by registering online at Dolby Laboratories Q3 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.

A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.

Non-GAAP Financial Information

To supplement Dolby's financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby's management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:

Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.

Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.

Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.

Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.

Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business, including

as a means to evaluate period-to-period comparisons. Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.

Forward-Looking Statements

Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2026 and full year fiscal 2026, Dolby's ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are "forward-looking statements" that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby's business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby's revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby's receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby's ability to develop, maintain, and strengthen relationships with industry participants; Dolby's ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby's ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

About Dolby

Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.

Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.

DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

June 26,
2026

June 27,
2025

June 26,
2026

June 27,
2025

Revenue:

  Licensing

$          282,351

$          289,905

$          974,367

$          966,390

  Products and services

22,644

25,641

72,964

75,716

Total revenue

304,995

315,546

1,047,331

1,042,106

Cost of revenue:

  Cost of licensing

22,718

21,713

67,523

62,508

  Cost of products and services

17,601

22,289

60,735

58,105

Total cost of revenue

40,319

44,002

128,258

120,613

Gross profit

264,676

271,544

919,073

921,493

Operating expenses:

  Research and development

65,749

65,982

198,477

194,327

  Sales and marketing

85,071

86,163

272,786

270,191

  General and administrative

75,585

72,307

221,783

212,814

  Restructuring charges/(credits)

3,955

(547)

16,605

8,879

Total operating expenses

230,360

223,905

709,651

686,211

Operating income

34,316

47,639

209,422

235,282

Other income/(expense):

  Interest income/(expense), net

3,453

4,111

12,595

10,316

  Other income, net

6,033

3,766

13,086

16,219

Total other income

9,486

7,877

25,681

26,535

Income before income taxes

43,802

55,516

235,103

261,817

 Provision for income taxes

(14,588)

(8,974)

(56,754)

(54,979)

Net income including noncontrolling interest

29,214

46,542

178,349

206,838

 Less: net income attributable to noncontrolling interest

(612)

(471)

(1,505)

(1,152)

Net income attributable to Dolby Laboratories, Inc.

$           28,602

$           46,071

$          176,844

$          205,686

Net income per share:

Basic

$              0.30

$              0.48

$              1.86

$              2.14

Diluted

$              0.30

$              0.48

$              1.84

$              2.11

Weighted-average shares outstanding:

Basic

94,242

95,897

94,975

95,947

Diluted

94,518

96,900

95,859

97,537

DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)

June 26,
2026

September 26,
2025

ASSETS

Current assets:

 Cash and cash equivalents

$          669,394

$          701,893

 Restricted cash

69,492

91,468

 Short-term investments

652

703

 Accounts receivable, net

285,148

331,096

 Contract assets, net

206,881

180,804

 Inventories, net

30,768

30,424

 Prepaid expenses and other current assets

63,706

51,873

Total current assets

1,326,041

1,388,261

 Long-term investments

86,437

80,205

 Property, plant, and equipment, net

459,115

470,608

 Operating lease right-of-use assets

42,401

33,204

 Goodwill and intangible assets, net

910,777

926,957

 Deferred taxes

213,171

214,361

 Other non-current assets

118,660

114,164

Total assets

$        3,156,602

$        3,227,760

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 Accounts payable

$           12,470

$           17,840

 Accrued liabilities

360,407

369,256

 Income taxes payable

—

8,928

 Contract liabilities

33,593

31,382

 Operating lease liabilities

9,859

10,384

Total current liabilities

416,329

437,790

 Non-current contract liabilities

23,463

29,687

 Non-current operating lease liabilities

37,591

28,494

 Other non-current liabilities

86,504

99,843

Total liabilities

563,887

595,814

Stockholders' equity:

 Class A common stock

52

54

 Class B common stock

40

40

 Retained earnings

2,598,923

2,634,980

 Accumulated other comprehensive loss

(15,468)

(12,517)

Total stockholders' equity – Dolby Laboratories, Inc.

2,583,547

2,622,557

 Noncontrolling interest

9,168

9,389

Total stockholders' equity

2,592,715

2,631,946

Total liabilities and stockholders' equity

$        3,156,602

$        3,227,760

DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)

Fiscal Year-To-Date Ended

June 26,
2026

June 27,
2025

Operating activities:

Net income including noncontrolling interest

$          178,349

$          206,838

Adjustments to reconcile net income to net cash provided by operating activities:

  Depreciation and amortization

70,842

65,829

  Stock-based compensation

98,883

97,462

  Amortization of operating lease right-of-use assets

7,889

8,193

  Provision for credit losses

4,244

2,582

  Deferred income taxes

1,542

(9,146)

  Share of net income of equity method investees, net of cash distributions

(7,602)

1,845

  Other non-cash items affecting net income

(1,289)

(429)

  Changes in operating assets and liabilities:

 Accounts receivable, net

1,489

15,234

 Contract assets, net

(28,442)

(6,902)

 Inventories

6,512

4,020

 Operating lease right-of-use assets

(17,547)

(1,717)

 Prepaid expenses and other assets

(31,999)

28,003

 Accounts payable and accrued liabilities

35,611

(48,979)

 Income taxes, net

(2,771)

1,895

 Contract liabilities

1,620

(1,061)

 Operating lease liabilities

9,036

(8,237)

 Other non-current liabilities

(11,600)

(6,063)

Net cash provided by operating activities

314,767

349,367

Investing activities:

 Proceeds from sales of marketable securities

—

15,911

 Proceeds from sale of assets held for sale

—

16,881

 Purchases of property, plant, and equipment

(28,681)

(20,104)

 Business combinations, net of cash and restricted cash acquired, and other related payments

—

(1,362)

 Purchases of intangible assets

(42,575)

—

 Proceeds from sale of intangible assets

16,623

—

Net cash provided by/(used in) investing activities

(54,633)

11,326

Financing activities:

 Proceeds from issuance of common stock

24,685

38,681

 Repurchase of common stock

(200,001)

(89,990)

 Payment of excise tax on repurchase of common stock

—

(261)

 Payment of cash dividend

(102,659)

(95,010)

 Distributions to noncontrolling interest

(1,640)

(1,449)

 Shares repurchased for tax withholdings on vesting of restricted stock

(33,113)

(35,154)

Net cash used in financing activities

(312,728)

(183,183)

 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash

(1,881)

1,302

Net increase/(decrease) in cash, cash equivalents, and restricted cash

(54,475)

178,812

Cash, cash equivalents, and restricted cash at beginning of period

793,361

577,752

Cash, cash equivalents, and restricted cash at end of period

$          738,886

$          756,564

Licensing Revenue by Market
(unaudited)

The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands,
except percentage amounts):

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

Market

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Broadcast

$  106,579

38 %

$  111,286

38 %

$  326,041

33 %

$  321,297

33 %

Mobile

51,010

18 %

56,295

19 %

220,199

23 %

217,942

23 %

CE

31,506

11 %

28,071

10 %

118,057

12 %

115,668

12 %

PC

28,343

10 %

33,589

12 %

116,523

12 %

123,247

13 %

Other

64,913

23 %

60,664

21 %

193,547

20 %

188,236

19 %

Total licensing revenue

$  282,351

100 %

$  289,905

100 %

$  974,367

100 %

$  966,390

100 %

GAAP to Non-GAAP Reconciliations

(unaudited)

The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third
 quarters of fiscal 2026 and fiscal 2025:

Net income:

Fiscal Quarter Ended

(in thousands)

June 26,
2026

June 27,
2025

GAAP net income attributable to Dolby Laboratories, Inc.

$         28,602

$         46,071

Stock-based compensation (1)

30,964

30,728

Amortization of acquisition-related intangibles (2)

9,705

10,016

Restructuring charges/(credits)

3,955

(547)

Income tax adjustments

(8,077)

(10,606)

Non-GAAP net income attributable to Dolby Laboratories, Inc.

$         65,149

$         75,662

(1) Stock-based compensation included in above line items:

  Cost of products and services

$            440

$            420

  Research and development

9,695

9,188

  Sales and marketing

10,293

10,589

  General and administrative

10,536

10,531

(2) Amortization of acquisition-related intangibles included in above line items:

  Cost of licensing

$          6,590

$          6,610

  Cost of products and services

768

753

  Sales and marketing

352

340

  General and administrative

1,554

1,872

  Other income, net

441

441

Diluted earnings per share:

Fiscal Quarter Ended

June 26,
2026

June 27,
2025

GAAP diluted earnings per share

$           0.30

$           0.48

Stock-based compensation

0.33

0.32

Amortization of acquisition-related intangibles

0.10

0.10

Restructuring charges/(credits)

0.04

(0.01)

Income tax adjustments

(0.08)

(0.11)

Non-GAAP diluted earnings per share

$           0.69

$           0.78

Weighted-average shares outstanding - diluted (in thousands)

94,518

96,900

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of
fiscal 2026 and full year fiscal 2026 included in this release:

Gross margin:

Q4 2026

Fiscal 2026

GAAP gross margin

88.0 %

88.0 %

Stock-based compensation

0.1 %

0.1 %

Amortization of acquisition-related intangibles

1.9 %

1.9 %

Non-GAAP gross margin

90.0 %

90.0 %

Operating expenses (in millions):

Q4 2026

Fiscal 2026

GAAP operating expenses (low - high end of range)

$227 - $237

$937 - $947

Stock-based compensation

(30)

(127)

Amortization of acquisition-related intangibles

(2)

(8)

Restructuring charges

—

(17)

Non-GAAP operating expenses (low - high end of range)

$195 - $205

$785 - $795

Operating margin:

Fiscal 2026

GAAP operating margin

21% +/-

Stock-based compensation

9 %

Amortization of acquisition-related intangibles

3 %

Restructuring charges

1 %

Non-GAAP operating margin

34% +/-

Effective tax rate:

Q4 2026

Fiscal 2026

GAAP effective tax rate

23.0 %

24.0 %

Stock-based compensation (low - high end of range)

(2%) - 1%

(2%) - 0%

Amortization of acquisition-related intangibles (low - high end of
range)

(1%) - 0%

(1%) - 0%

Non-GAAP effective tax rate

21.0 %

21.0 %

Diluted earnings per share:

Q4 2026

Fiscal 2026

Low

High

Low

High

GAAP diluted earnings per share (low - high end of range)

$           0.78

$         0.93

$           2.62

$         2.77

Stock-based compensation  (low - high end of range)

0.32

0.32

1.33

1.33

Amortization of acquisition-related intangibles (low - high end of
range)

0.10

0.10

0.41

0.41

Restructuring charges (low - high end of range)

—

—

0.18

0.18

Income tax adjustments (low - high end of range)

(0.07)

(0.07)

(0.29)

(0.29)

Non-GAAP diluted earnings per share (low - high end of range)

$           1.13

$         1.28

$           4.25

$         4.40

Weighted-average shares outstanding - diluted (in thousands)

93,600

93,600

95,200

95,200

Investor Contact:
Peter Goldmacher
415-254-7415
[email protected]

Media Contact:
[email protected]

SOURCE Dolby Laboratories, Inc.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.

Summary of Financial Results - Second Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  3,502

$  2,787

$    450

$    510

$    948

$    892

$    1.74

$    1.95

Net (gains) on divestitures

(8)

(6)

(6)

(5)

(8)

(6)

(0.02)

(0.02)

Acquisition integration

—

—

84

30

113

41

0.33

0.12

Workforce and lease termination

—

—

30

28

40

37

0.11

0.11

Acquisition related adjustments

—

—

49

25

70

50

0.19

0.09

Amortization of intangible assets

—

—

218

130

—

—

0.84

0.50

Levelized foreign currency translation

–

1

—

(7)

—

(9)

—

(0.03)

Brokerage, as adjusted

3,494

2,782

825

711

1,163

1,005

3.19

2.72

Risk Management, as reported

453

392

57

43

96

75

0.22

0.16

Acquisition integration

—

—

1

1

1

2

–

0.01

Workforce and lease termination

—

—

1

3

2

4

0.01

0.01

Acquisition related adjustments

—

—

2

1

2

1

0.01

—

Amortization of intangible assets

—

—

5

5

—

—

0.02

0.02

Levelized foreign currency translation

—

5

—

1

—

1

—

—

Risk Management, as adjusted

453

397

66

54

101

83

0.26

0.20

Corporate, as reported

—

—

(183)

(185)

(98)

(111)

(0.71)

(0.71)

Transaction-related costs

—

—

10

24

12

29

0.04

0.09

Legal, tax and benefit plan related

—

—

16

—

21

—

0.06

—

Corporate, as adjusted

—

—

(157)

(161)

(65)

(82)

(0.61)

(0.62)

Total Company, as reported

$  3,955

$  3,179

$    324

$    368

$     946

$     856

$    1.25

$    1.40

Total Company, as adjusted

$  3,947

$  3,179

$    734

$    604

$  1,199

$  1,006

$    2.84

$    2.30

Total Brokerage & Risk Management, as reported

$  3,955

$  3,179

$    507

$    553

$  1,044

$     967

$    1.96

$    2.11

Total Brokerage & Risk Management, as adjusted

$  3,947

$  3,179

$    891

$    765

$  1,264

$  1,088

$    3.45

$    2.92

For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.

(1 of 20)

"We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%. Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution. Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.

"In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust. Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders."

Summary of Financial Results - Six-Months ended June 30

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  7,795

$  6,101

$  1,363

$  1,326

$  2,510

$  2,243

$    5.25

$    5.08

Net (gains) on divestitures

(15)

(12)

(11)

(9)

(15)

(12)

(0.04)

(0.04)

Acquisition integration

—

—

149

63

200

85

0.57

0.24

Workforce and lease termination

—

—

50

42

67

55

0.19

0.16

Acquisition related adjustments

—

—

88

50

120

80

0.34

0.19

Amortization of intangible assets

—

—

419

282

—

—

1.62

1.09

Effective income tax rate impact

—

—

—

1

—

—

—

—

Levelized foreign currency translation

—

58

—

6

—

10

—

0.03

Brokerage, as adjusted

7,780

6,147

2,058

1,761

2,882

2,461

7.93

6.75

Risk Management, as reported

881

766

107

84

182

147

0.41

0.32

Acquisition integration

—

—

2

2

2

4

0.01

0.01

Workforce and lease termination

—

—

2

6

3

7

0.01

0.02

Acquisition related adjustments

—

—

6

1

8

1

0.02

—

Amortization of intangible assets

—

—

10

9

—

—

0.04

0.04

Levelized foreign currency translation

—

12

—

2

—

2

—

0.01

Risk Management, as adjusted

881

778

127

104

195

161

0.49

0.40

Corporate, as reported

(5)

—

(323)

(333)

(189)

(233)

(1.25)

(1.28)

Transaction-related costs

—

—

16

44

19

52

0.06

0.17

Legal, tax and benefit plan related

—

—

17

—

39

—

0.07

—

Clean energy-related

5

—

3

—

5

—

0.01

—

Corporate, as adjusted

—

—

(287)

(289)

(126)

(181)

(1.11)

(1.11)

Total Company, as reported

$  8,671

$  6,867

$  1,147

$  1,077

$  2,503

$  2,157

$    4.41

$    4.12

Total Company, as adjusted

$  8,661

$  6,925

$  1,898

$  1,576

$  2,951

$  2,441

$    7.31

$    6.04

Total Brokerage & Risk Management, as reported

$  8,676

$  6,867

$  1,470

$  1,410

$  2,692

$  2,390

$    5.66

$    5.40

Total Brokerage & Risk Management, as adjusted

$  8,661

$  6,925

$  2,185

$  1,865

$  3,077

$  2,622

$    8.42

$    7.15

For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.

(2 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Base Commissions and Fees

Commissions and fees, as reported

$      3,180

$         2,387

$      7,095

$         5,256

Less commissions and fees from acquisitions, divested operations and other

(775)

(80)

(1,712)

(144)

Levelized foreign currency translation

—

1

—

51

Organic base commissions and fees

$      2,405

$         2,306

$      5,383

$         5,163

Organic change in base commissions and fees

4 %

4 %

Supplemental Revenues

Supplemental revenues, as reported

$        141

$           103

$        321

$           217

Less supplemental revenues from acquisitions, divested operations and other

(17)

—

(63)

—

Levelized foreign currency translation

—

—

—

2

Organic supplemental revenues

$        124

$           103

$        258

$           219

Organic change in supplemental revenues

20 %

18 %

Contingent Revenues

Contingent revenues, as reported

$          91

$            73

$        206

$           166

Less contingent revenues from acquisitions, divested operations and other

(24)

—

(43)

—

Levelized foreign currency translation

—

—

—

1

Organic contingent revenues

$          67

$            73

$        163

$           167

Organic change in contingent revenues

(8 %)

(2 %)

Total reported commissions, fees, supplemental revenues and contingent revenues

$      3,412

$         2,563

$      7,622

$         5,639

Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other

(816)

(80)

(1,818)

(144)

Levelized foreign currency translation

—

1

—

54

Total organic commissions, fees, supplemental revenues and contingent revenues

$      2,596

$         2,482

$      5,804

$         5,549

Total organic change

5 %

5 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed *

6

9

14

19

Estimated annualized revenues acquired (in millions)

$           58

$         291

$         107

$         354

*

In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions.

(3 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$     2,017

$     1,526

$     4,228

$     3,143

Acquisition integration

(53)

(20)

(90)

(48)

Workforce and lease termination related charges

(29)

(36)

(53)

(52)

Acquisition related adjustments

(70)

(50)

(120)

(80)

Levelized foreign currency translation

—

8

—

37

Compensation expense, as adjusted

$     1,865

$     1,428

$     3,965

$     3,000

Reported compensation expense ratios using reported revenues on pages 1 and 2

*

57.6 %

54.8 %

54.2 %

51.5 %

Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2

**

53.4 %

51.3 %

51.0 %

48.8 %

*

Reported second quarter 2026 compensation expense ratio was 2.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher integration costs, partially offset by lower workforce termination costs and savings from headcount controls.

**

Adjusted second quarter 2026 compensation expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$       537

$       369

$     1,057

$       715

Acquisition integration

(60)

(21)

(110)

(37)

Workforce and lease termination related charges

(11)

(1)

(14)

(3)

Levelized foreign currency translation

—

2

—

11

Operating expense, as adjusted

$       466

$       349

$       933

$       686

Reported operating expense ratios using reported revenues on pages 1 and 2

*

15.3 %

13.2 %

13.6 %

11.7 %

Adjusted operating expense ratios using adjusted revenues on pages 1 and 2

**

13.3 %

12.5 %

12.0 %

11.2 %

*

Reported second quarter 2026 operating expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by higher integration and technology costs. This ratio was also impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.

**

Adjusted second quarter 2026 operating expense ratio was 0.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher technology costs.

(4 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$       450

$       510

$     1,363

$     1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

948

892

2,510

2,243

Net (gains) on divestitures

(8)

(6)

(15)

(12)

Acquisition integration

113

41

200

85

Workforce and lease termination related charges

40

37

67

55

Acquisition related adjustments

70

50

120

80

Levelized foreign currency translation

—

(9)

—

10

EBITDAC, as adjusted

$     1,163

$     1,005

$     2,882

$     2,461

Net earnings margin, as reported using reported revenues on pages 1 and 2

12.9 %

18.3 %

17.5 %

21.7 %

EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2

*

33.3 %

36.1 %

**

37.0 %

40.0 %

*

Second quarter 2025 adjusted EBITDAC includes approximately $144 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in second quarter adjusted EBITDAC margin by approximately 3.9%.

**

Adjusted EBITDAC for the six-month period ended June 30, 2025 includes approximately $287 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in adjusted EBITDAC margin for the six-month period ended June 30, by approximately 3.4%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Fees

$        438

$           382

$        853

$           745

International performance bonus fees

7

1

12

3

Fees as reported

445

383

865

748

Less fees from acquisitions, divestitures and other

(11)

(1)

(24)

(2)

Levelized foreign currency translation

—

5

—

12

Organic fees

$        434

$           387

$        841

$           758

Organic change in fees

12 %

11 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed

1

—

2

1

Estimated annualized revenues acquired (in millions)

$              5

$            —

$            15

$            38

 (5 of 20)

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$       274

$       244

$       538

$       475

Acquisition integration

—

(1)

—

(2)

Workforce and lease termination related charges

(2)

(3)

(3)

(6)

Acquisition related adjustments

(2)

(1)

(8)

(1)

Levelized foreign currency translation

—

4

—

9

Compensation expense, as adjusted

$       270

$       243

$       527

$       475

Reported compensation expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

60.5 %

62.2 %

61.1 %

62.0 %

Adjusted compensation expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

59.6 %

61.2 %

59.8 %

61.1 %

*

Reported and adjusted second quarter 2026 compensation expense ratios were 1.7 pts and 1.6 pts lower, respectively,  than second quarter 2025. Both ratios were primarily impacted by savings related to headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$         83

$         73

$       161

$       144

Acquisition integration

(1)

(1)

(2)

(2)

Workforce and lease termination related charges

—

(1)

—

(1)

Levelized foreign currency translation

—

—

—

1

Operating expense, as adjusted

$         82

$         71

$       159

$       142

Reported operating expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

18.3 %

18.6 %

18.3 %

18.8 %

Adjusted operating expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

18.1 %

18.2 %

18.1 %

18.2 %

*

Reported and adjusted second quarter 2026 operating expense ratios were 0.3 pts and 0.1 pts lower, respectively, than second quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$         57

$     43

$       107

$         84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

96

75

182

147

Acquisition integration

1

2

2

4

Workforce and lease termination related charges

2

4

3

7

Acquisition related adjustments

2

1

8

1

Levelized foreign currency translation

—

1

—

2

EBITDAC, as adjusted

$       101

$     83

$       195

$       161

Net earnings margin, as reported using reported revenues
  (before reimbursements) on pages 1 and 2

12.6 %

11.0 %

12.2 %

11.0 %

EBITDAC margin, as adjusted using adjusted revenues
  (before reimbursements) on pages 1 and 2

22.3 %

20.9 %

22.1 %

20.7 %

(6 of 20)

Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

2nd Quarter

2026

2025

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Components of Corporate Segment, as reported

Interest and banking costs

$         (169)

$    44

$        (125)

$         (159)

$    41

$        (118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs (1)

(18)

3

(15)

(34)

6

(28)

Corporate (2)

(79)

37

(42)

(76)

39

(37)

Reported 2nd quarter

(268)

85

(183)

(271)

86

(185)

Adjustments

Transaction-related costs (1)

12

(2)

10

29

(5)

24

Legal and tax related (4)

13

(3)

10

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(169)

44

(125)

(159)

41

(118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs

(6)

1

(5)

(5)

1

(4)

Corporate (2)

(58)

32

(26)

(76)

39

(37)

Adjusted 2nd quarter

$         (235)

$    78

$        (157)

$         (242)

$    81

$        (161)

Six Months

Components of Corporate Segment, as reported

Interest and banking costs

$         (327)

$    85

$        (242)

$         (318)

$    83

$        (235)

Clean energy-related

(9)

3

(6)

(4)

1

(3)

Acquisition costs (1)

(28)

5

(23)

(60)

9

(51)

Corporate (2)

(155)

103

(52)

(171)

127

(44)

Reported six months

(519)

196

(323)

(553)

220

(333)

Adjustments

Clean energy-related (3)

5

(2)

3

—

—

—

Transaction-related costs (1)

19

(3)

16

52

(8)

44

Legal and tax related (4)

31

(20)

11

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(327)

85

(242)

(318)

83

(235)

Clean energy-related

(4)

1

(3)

(4)

1

(3)

Acquisition costs

(9)

2

(7)

(8)

1

(7)

Corporate (2)

(116)

81

(35)

(171)

127

(44)

Adjusted six months 

$         (456)

$  169

$        (287)

$         (501)

$  212

$        (289)

(1)

Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.

(2)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(25) million in second quarter 2025. There was no net impact of unrealized foreign exchange remeasurement in second quarter 2026. Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in the six-month period ended June 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(48) million in the six-month period ended June 30, 2025.

(3)

Adjustments in the six-month period ended June 30, 2026 include the write-down of a clean energy-related investment.

(4)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with legal and tax matters.

(5)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

(7 of 20)

Interest, banking costs and debt - At June 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $1,365 million of borrowings under its line of credit facility. In addition, Gallagher had $134 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.

Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.

Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.

Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rates for the quarters ended June 30, 2026 and 2025 were 21.7% and 22.3%, respectively.

AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion. 

Share Repurchases - In the second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

(8 of 20)

Information Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

(9 of 20)

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes.

Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:

Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure. Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems. Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation. Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce. Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space. Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date. Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges. The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year. Effective income tax rate impact, which levelized the prior year for the change in current year tax rates. Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment. Legal and tax related, which represents the impact of adjustments in second quarter 2026 related to costs associated with legal and tax matters. Benefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

(10 of 20)

Non-GAAP Earnings Measures

EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis. EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Brokerage Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

738

579

1,530

1,199

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

90

224

173

462

Total revenues

3,502

2,787

7,795

6,101

Compensation

2,017

1,526

4,228

3,143

Operating

537

369

1,057

715

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

Expenses

2,898

2,101

5,965

4,316

Earnings before income taxes

604

686

1,830

1,785

Provision for income taxes

154

176

467

459

Net earnings

450

510

1,363

1,326

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           450

$           510

$         1,362

$         1,321

EBITDAC

Net earnings

$           450

$           510

$         1,363

$         1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

$           948

$           892

$         2,510

$         2,243

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(12 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Risk Management Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Fees

$           445

$           383

$           865

$           748

Interest income and other income

8

9

16

18

Revenues before reimbursements

453

392

881

766

Reimbursements

48

43

90

82

Total revenues

501

435

971

848

Compensation

274

244

538

475

Operating

83

73

161

144

Reimbursements

48

43

90

82

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

Expenses

423

377

825

734

Earnings before income taxes

78

58

146

114

Provision for income taxes

21

15

39

30

Net earnings

57

43

107

84

Net earnings attributable to noncontrolling interests

—

—

—

—

Net earnings attributable to controlling interests

$            57

$            43

$           107

$            84

EBITDAC

Net earnings

$            57

$            43

$           107

$            84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

$            96

$            75

$           182

$           147

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(13 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Corporate Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Other loss

$            —

$             —

$             (5)

$             —

Total revenues

—

—

(5)

—

Compensation

39

34

80

83

Operating

59

77

104

150

Interest

168

158

326

316

Depreciation

2

2

4

4

Expenses

268

271

514

553

Loss before income taxes

(268)

(271)

(519)

(553)

Benefit for income taxes

(85)

(86)

(196)

(220)

Net loss

(183)

(185)

(323)

(333)

Net loss attributable to noncontrolling interests

—

—

—

—

Net loss attributable to controlling interests

$          (183)

$          (185)

$          (323)

$          (333)

EBITDAC

Net loss

$          (183)

$          (185)

$          (323)

$          (333)

Benefit for income taxes

(85)

(86)

(196)

(220)

Interest

168

158

326

316

Depreciation

2

2

4

4

EBITDAC

$           (98)

$          (111)

$          (189)

$          (233)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(14 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Total Company

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

1,183

962

2,395

1,947

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

98

233

184

480

Revenues before reimbursements

3,955

3,179

8,671

6,867

Reimbursements

48

43

90

82

Total revenues

4,003

3,222

8,761

6,949

Compensation

2,330

1,804

4,846

3,701

Operating

679

519

1,322

1,009

Reimbursements

48

43

90

82

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

Expenses

3,589

2,749

7,304

5,603

Earnings before income taxes

414

473

1,457

1,346

Provision for income taxes

90

105

310

269

Net earnings

324

368

1,147

1,077

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           324

$           368

$         1,146

$         1,072

Diluted net earnings per share

$          1.25

$          1.40

$          4.41

$          4.12

Dividends declared per share

$          0.70

$          0.65

$          1.40

$          1.30

EBITDAC

Net earnings

$           324

$           368

$         1,147

$         1,077

Provision for income taxes

90

105

310

269

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

EBITDAC

$           946

$           856

$         2,503

$         2,157

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(15 of 20)

Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)

June 30, 2026

Dec 31, 2025

Cash and cash equivalents

$            1,386

$            1,396

Fiduciary assets (includes fiduciary cash of $7,947 in 2026 and $7,142 in 2025)

37,183

26,899

Accounts receivable, net

6,076

5,175

Other current assets

807

886

Total current assets

45,452

34,356

Fixed assets - net

765

789

Deferred income taxes

43

43

Other noncurrent assets

1,732

1,602

Right-of-use assets

578

598

Goodwill

23,026

22,593

Amortizable intangible assets - net

10,212

10,684

Total assets

$          81,808

$          70,665

Fiduciary liabilities

$          37,183

$          26,899

Accrued compensation and other current liabilities

3,548

4,017

Deferred revenue - current

788

737

Premium financing debt

134

226

Corporate related borrowings - current

1,520

640

Total current liabilities

43,173

32,519

Corporate related borrowings - noncurrent

11,955

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

497

515

Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025)

2,259

2,025

Total liabilities

58,061

47,318

Stockholders' equity:

Common stock - issued and outstanding

256

257

Capital in excess of par value

17,567

17,783

Retained earnings

6,588

5,806

Accumulated other comprehensive loss

(694)

(525)

Total controlling interests stockholders' equity

23,717

23,321

Noncontrolling interests

30

26

Total stockholders' equity

23,747

23,347

Total liabilities and stockholders' equity

$          81,808

$          70,665

(16 of 20)

Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)

OTHER INFORMATION

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Basic weighted average shares outstanding (000s)

256,649

256,260

256,884

255,540

Diluted weighted average shares outstanding (000s)

258,685

260,435

259,260

259,929

Number of common shares outstanding at end of period (000s)

256,341

256,363

Workforce at end of period (includes acquisitions):

Brokerage

56,202

*

44,909

Risk Management

11,254

10,584

Total Company

73,329

*

59,291

*

The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2026

Brokerage, as reported

$          604

$      154

$     450

$             —

$           450

$       1.74

Net (gains) on divestitures

(8)

(2)

(6)

—

(6)

(0.02)

Acquisition integration

113

29

84

—

84

0.33

Workforce and lease termination

40

10

30

—

30

0.11

Acquisition related adjustments

66

17

49

—

49

0.19

Amortization of intangible assets

294

76

218

—

218

0.84

Brokerage, as adjusted

$        1,109

$      284

$     825

$             —

$           825

$       3.19

Risk Management, as reported

$            78

$        21

$      57

$             —

$            57

$       0.22

Acquisition integration

1

—

1

—

1

–

Workforce and lease termination

2

1

1

—

1

0.01

Acquisition related adjustments

2

—

2

—

2

0.01

Amortization of intangible assets

7

2

5

—

5

0.02

Risk Management, as adjusted

$            90

$        24

$      66

$             —

$            66

$       0.26

Corporate, as reported

$         (268)

$       (85)

$    (183)

$             —

$          (183)

$      (0.71)

Transaction-related costs

12

2

10

—

10

0.04

Legal, tax and benefit plan related

21

5

16

—

16

0.06

Corporate, as adjusted

$         (235)

$       (78)

$    (157)

$             —

$          (157)

$      (0.61)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(17 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2025

Brokerage, as reported

$       686

$     176

$        510

$             —

$          510

$       1.95

Net (gains) on divestitures

(6)

(1)

(5)

—

(5)

(0.02)

Acquisition integration

41

11

30

—

30

0.12

Workforce and lease termination

37

9

28

—

28

0.11

Acquisition related adjustments

33

8

25

—

25

0.09

Amortization of intangible assets

174

44

130

—

130

0.50

Levelized foreign currency translation

(10)

(3)

(7)

—

(7)

(0.03)

Brokerage, as adjusted

$       955

$     244

$        711

$             —

$          711

$       2.72

Risk Management, as reported

$        58

$       15

$         43

$             —

$            43

$       0.16

Acquisition integration

2

1

1

—

1

0.01

Workforce and lease termination

4

1

3

—

3

0.01

Acquisition related adjustments

1

–

1

—

1

—

Amortization of intangible assets

6

1

5

—

5

0.02

Levelized foreign currency translation

1

—

1

—

1

—

Risk Management, as adjusted

$        72

$       18

$         54

$              –

$            54

$       0.20

Corporate, as reported

$      (271)

$     (86)

$       (185)

$             —

$         (185)

$      (0.71)

Transaction-related costs

29

5

24

—

24

0.09

Corporate, as adjusted

$      (242)

$     (81)

$       (161)

$              –

$         (161)

$      (0.62)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(18 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

6 Mths Ended June 30, 2026

Brokerage, as reported

$     1,830

$     467

$      1,363

$              1

$        1,362

$       5.25

Net (gains) on divestitures

(15)

(4)

(11)

—

(11)

(0.04)

Acquisition integration

200

51

149

—

149

0.57

Workforce and lease termination

67

17

50

—

50

0.19

Acquisition related adjustments

119

31

88

—

88

0.34

Amortization of intangible assets

565

146

419

—

419

1.62

Brokerage, as adjusted

$     2,766

$     708

$      2,058

$              1

$        2,057

$       7.93

Risk Management, as reported

$       146

$       39

$        107

$             —

$          107

$       0.41

Acquisition integration

2

—

2

—

2

0.01

Workforce and lease termination

3

1

2

—

2

0.01

Acquisition related adjustments

8

2

6

—

6

0.02

Amortization of intangible assets

14

4

10

—

10

0.04

Risk Management, as adjusted

$       173

$       46

$        127

$             —

$          127

$       0.49

Corporate, as reported

$      (519)

$    (196)

$       (323)

$             —

$         (323)

$      (1.25)

Transaction-related costs

19

3

16

—

16

0.06

Legal, tax and benefit plan related

39

22

17

—

17

0.07

Clean energy-related

5

2

3

—

3

0.01

Corporate, as adjusted

$      (456)

$    (169)

$       (287)

$             —

$         (287)

$      (1.11)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(19 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

6 Mths Ended June 30, 2025

Brokerage, as reported

$     1,785

$     459

$      1,326

$              5

$        1,321

$       5.08

Net (gains) on divestitures

(12)

(3)

(9)

—

(9)

(0.04)

Acquisition integration

85

22

63

—

63

0.24

Workforce and lease termination

55

13

42

—

42

0.16

Acquisition related adjustments

66

16

50

—

50

0.19

Amortization of intangible assets

378

96

282

—

282

1.09

Effective income tax impact

—

(1)

1

—

1

—

Levelized foreign currency translation

7

1

6

—

6

0.03

Brokerage, as adjusted

$     2,364

$     603

$      1,761

$              5

$        1,756

$       6.75

Risk Management, as reported

$       114

$       30

$         84

$             —

$            84

$       0.32

Acquisition integration

4

2

2

—

2

0.01

Workforce and lease termination

7

1

6

—

6

0.02

Acquisition related adjustments

1

—

1

—

1

—

Amortization of intangible assets

12

3

9

—

9

0.04

Levelized foreign currency translation

2

—

2

—

2

0.01

Risk Management, as adjusted

$       140

$       36

$        104

$             —

$          104

$       0.40

Corporate, as reported

$      (553)

$    (220)

$       (333)

$             —

$         (333)

$      (1.28)

Transaction-related costs

52

8

44

—

44

0.17

Corporate, as adjusted

$      (501)

$    (212)

$       (289)

$             —

$         (289)

$      (1.11)

See "Information Regarding Non-GAAP Measures" on page 9 of 20.

Contact: 
Sara Walsh
630-285-3593 or [email protected] 

(20 of 20)

SOURCE Arthur J. Gallagher & Co.