Key Takeaways Johnson & Johnson's Innovative Medicine sales rose 6.8% operationally to $16.38 billion in Q2 2026.JNJ's growth was led by Darzalex, Tremfya, Erleada and newer drugs despite Stelara's sharp decline.Johnson & Johnson expects key drugs and new launches to support above-market growth through 2026. Johnson & Johnson (JNJ - Free Report) , via its Innovative Medicine segment, markets a broad portfolio of blockbuster therapies across key areas, including neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
J&J’s Innovative Medicines/Pharma segment is the company’s primary growth engine, clearly outperforming its MedTech segment, despite the impact of biosimilar and generic competition on sales of some key drugs like Stelara, Remicade and Zytiga.
J&J’s Innovative Medicine Segment’s Q2 PerformanceJ&J’s Innovative Medicine segment delivered another quarter of healthy operational growth in the second quarter as sales rose 6.8% on an operational basis (excluding the impact of currency) to $16.38 billion.
On an organic basis, sales rose 6.9% despite the loss of exclusivity (“LOE”) of the multi-billion-dollar product, Stelara.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Zytiga.
Sales of blockbuster multiple myeloma treatment, Darzalex, rose 18.9% to $4.21 billion in the quarter. Tremfya remained another key growth driver, with sales rising 72.5% to $2.05 billion. Erleada sales increased 9.5% to $995 million.
Stelara’s sales fell 55.2% to $740 million. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 760 basis points and total revenues by 460 basis points in the second quarter.
J&J’s Innovative Medicine Segment’s Outlook for H2J&J expects its Innovative Medicine segment to remain a key growth driver in the second half of 2026. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada, as well as increased contribution from new launches like Icotyde, Rybrevant and Inlexzo, which can offset the ongoing impact of Stelara biosimilar competition. On the second-quarter conference call, J&J said that it is seeing strong launches of all these new drugs, Inlexzo, Icotyde and Imaavy.
However, other than the Stelara LOE impact, J&J expects generic impact for both Simponi and Opsumit to begin in 2026 as the drugs lose patent protection.
Overall, J&J expects continued above-market growth for the Innovative Medicine segment through the remainder of 2026. In fact, Innovative Medicine is expected to remain J&J's primary growth engine for the foreseeable future.
J&J Key CompetitorsImmunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen (AMGN - Free Report) , Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.
JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 26.7% this year compared with 11.8% appreciation of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.07 forward earnings, higher than 18.72 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.65 per share over the past 30 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
Image Source: Zacks Investment Research
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Signage is seen outside of the Food and Drug Administration headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 24 (Reuters) - The U.S. Food and Drug Administration on Friday approved a nonprescription, fixed-dose pill that combines Kenvue's (KVUE.N), opens new tab Tylenol with the nonsteroidal anti-inflammatory drug naproxen for up to 12 hours of pain relief.
Here are some details:
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The pill can be used by adults and children aged 12 and older for headaches, back pain, muscle aches, toothaches, menstrual cramps and minor arthritis pain.
The FDA said the approval aligns with Trump's "The Great Healthcare Plan," a federal effort to make more verified safe pharmaceutical drugs available for over-the-counter purchase.
Each pill contains 325 milligrams of Tylenol and 110 milligrams of naproxen sodium.
Tylenol has been under scrutiny after U.S. health officials raised concerns about an alleged link between Tylenol use during pregnancy and autism. There is no firm scientific evidence of such a link.
The debate has also triggered legal action, as Texas sued Kenvue over alleged failures to warn pregnant consumers, and a U.S. appeals court this month revived more than 500 private lawsuits making similar claims.
Kenvue agreed last November to be acquired by Kleenex tissue maker Kimberly-Clark (KMB.O), opens new tab for more than $40 billion. The transaction is expected to close this year.
Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Walt Disney (DIS - Free Report) .
Disney currently has an average brokerage recommendation (ABR) of 1.48, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.48 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71.9% and 12.5% of all recommendations.
Brokerage Recommendation Trends for DIS
Check price target & stock forecast for Disney here>>>
While the ABR calls for buying Disney, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is DIS a Good Investment?In terms of earnings estimate revisions for Disney, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.85.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Disney. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Disney.
The past few years have been great for Walt Disney (DIS +2.98%), but not necessarily its shareholders. Despite delivering five consecutive fiscal years of growing revenue -- on widening adjusted net margins in each of the last four -- the stock has lost nearly half of its value in that time.
Even the past year of modestly accelerating revenue growth, box office domination, and skeptics-defying gains at its theme parks hasn't translated to a winning stock chart. Disney shares have fallen 20% over the past 12 months.
The bears may have momentum, but it might not be that way for long. Let's delve into three bearish knocks on Disney, and how the company is better positioned than you might think to bounce back on all fronts. Sit back, pass the popcorn, and let's roll.
Image source: Disney.
1. Hooray for Hollywood Bear thesis: Did you see Moana bomb at the multiplex earlier this month? Disney needs to stop making these sequels and live-action reboots of animated classics and start focusing on original properties.
Bull reality: Moana had a disappointing opening weekend, and it will likely result in a one-time charge down the line. It doesn't mean that the blueprint is toast. Last year's live-action remake was Lilo & Stitch; it was one of just four movies to top $1 billion in worldwide ticket sales.
Disney won't always hit it out of the park. It currently has the country's highest-grossing movie of the year in Toy Story 5, but its next-biggest year-to-date ticket seller is sixth. There are still plenty of major releases in the pipeline at the House of Mouse, including Marvel's Avengers: Doomsday in December, which should be the top draw among 2026 theatrical releases.
There were seven movies in 2024 and 2025 that cleared $1 billion in box office receipts. Disney put out six of them. As an aside, they were all sequels or live-action reboots of existing properties (even the seventh film, China's Ne Zha 2). Disney won't have the same global dominance in 2026, but it's still an indisputable hit factory.
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2. As the turnstiles turn Bear thesis: A theme park vacation isn't for the weak of wallet. Inflationary pressures and factors weighing on international travel can't help in the near term. Didn't you see Comcast warning about softness for its gated attractions in this week's earnings report?
Bull reality: Comcast did warn that it was experiencing softness at its theme parks in June and that weak trend has carried over into the first few weeks of this quarter. Disney and Comcast compete in the same two U.S. markets of Central Florida and Southern California. The situation could pose some near-term challenges, but Disney isn't Comcast.
Comcast may have opened Epic Universe in Orlando last year, but in the process, it has neglected its legacy parks. It's now been a little over five years since it added a major, well-received attraction (Velocicoaster at Islands of Adventure in June 2021) at its three older Universal Orlando destinations.
Disney is marching to a different beat. Its theme parks held up well over the past year, even when many figured the arrival of Epic Universe would crush the industry leader. With Disney and Comcast currently undergoing major additions in their Florida resorts, the long-term prospects remain strong. Expect Disney to make some major theme park announcements at its D23 expo next month, its first fan event since new CEO Josh D'Amaro took over.
3. Historical value Bear thesis: Disney stock's fall in recent years reflects its weakening fundamentals and difficult operating environment for media conglomerates.
Bull reality: The rebuttal here starts with a simple chart, showing how cheap Disney stock has become.
Disney's business has improved dramatically in recent years. It posted a double-digit net margin in fiscal 2025, something that it hadn't done in six years. Between Disney+ turning profitable two years ago and the swift recovery of its consumer experiences business, Disney is faring much better than its meandering stock chart suggests.
The chart above tracks two earnings-based valuation multiples. The orange line is the P/E ratio for the fiscal year 2026, which ends in two months. The purple line looks out to the new fiscal year that starts in October. Did you know Disney was trading for less than 14 times this year's earnings and just 12 times next year's multiple?
It's a story that isn't really being told. Estimates have inched higher since just before it posted its fiscal second-quarter results in May. Before you argue that analysts are being too optimistic, keep in mind that they have underestimated Disney's earnings in each of its last quarterly updates.
Reels, wheels, and deals? Disney is ready to bounce back in the final five months of 2026.
Lockheed Martin (NYSE:LMT | LMT Price Prediction) reported Q2 EPS of $7.94 versus $7.199 expected, revenue of $20.06 billion, and a record $230.42 billion backlog.
Shares ripped 10.54% in a single session and are up 18.95% year to date. Can LMT push through to $700 per share by 2027?
What Was Holding Lockheed Back Coming into 2026, LMT was the sick man of large-cap defense. Q1 was a miss, EPS $6.44 versus $6.70 expected, and the stock dropped 4.62% on the report. F-35 deliveries collapsed to 19 from 50 a year earlier, and unfavorable adjustments on Heavy Lift ($65 million) and Seahawk ($50 million) reinforced fixed-price program risk eating margins.
Peers ran ahead. General Dynamics hit an all-time high of $381.18 while LMT sat roughly 12% below its 52-week high of $687.50. Analysts at TD Cowen and Jefferies flagged margin pressure and a sector that had gone “out of favor.” With a beta of just 0.113, LMT grinds rather than bounces hard, capping enthusiasm.
Wall Street Sees 6.7% Upside. I Think That’s Too Cautious The Street consensus target sits at $606.68, with 2 Strong Buys, 4 Buys, 14 Holds, and 1 Sell. Our base case model lands at $619.24, an 8.91% upside, with a bull case of $660.34 and confidence rated 0.9, or high.
Both figures anchor to 29% bullish analyst sentiment and 67% neutral. Morgan Stanley raised the firm’s price target on Lockheed Martin to $690 from $653 and keeps an Equal Weight rating on the shares
Management raised full-year EPS guidance to $29.95 to $30.65 and free cash flow to $7 billion to $7.2 billion. Fourteen Holds today is a stale rating.
The Path to $700 Per Share Reaching $700 from today’s price of $568.59 would require a gain of 23.1%. With forward EPS of $31.39, a price of $700 implies a forward P/E of 22x. Our base case of $619.24 already implies 21x means the bold target requires only 1.3x of additional multiple expansion.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lockheed Martin didn't make the cut. Grab the names FREE today.
That is achievable if guidance keeps moving up. CEO Jim Taiclet said the quarter reflected “a $35 billion multi-year contract with the Missile Defense Agency for THAAD” and raised guidance to “accelerated year-over-year sales growth of approximately 8%, driving 28% higher segment operating profit.”
New wins keep landing: a 12-year logistics deal with U.S. Special Operations Command worth up to $10.5 billion and a $1.6 billion F-35 spares order for the U.S. Navy. The primary risk is renewed fixed-price program charges that reset earnings lower.
Where Lockheed Trades Today Versus Its Earnings Power At $568.59 against forward EPS of $31.39, LMT trades at roughly 18x forward earnings. For a business compounding backlog to $230 billion with $2.9 billion of quarterly free cash flow, that is cheap.
Shares sit between the 52-week low of $401.69 and high of $687.50, and the stock has returned 189.98% over ten years. The valuation reset from the Q1 miss has largely been erased, but the multiple has not caught up to the new earnings power the raised guidance implies.
Is $700 Realistic? $700 by 2027 requires a 23.1% gain and about 1.3x of multiple expansion on top of our base case.
Three things need to go right: guidance drifts higher on THAAD, PAC-3, and Precision Strike Missile ramps; F-35 deliveries stabilize and Aeronautics stops absorbing loss adjustments; the pending Ultra Maritime acquisition closes cleanly. A congressional continuing resolution delaying procurement funding would derail it fastest. We’ve outlined the blueprint for how Lockheed Martin could reach $700 in 2027.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lockheed Martin didn't make the cut. Grab the names FREE today.
Exxon Mobil Holdings (XOM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil and natural gas company is expected to post quarterly earnings of $3.79 per share in its upcoming report, which represents a year-over-year change of +131.1%.
Revenues are expected to be $95.8 billion, up 17.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 14.72% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Exxon?For Exxon, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.01%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Exxon will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Exxon would post earnings of $1.07 per share when it actually produced earnings of $1.16, delivering a surprise of +8.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Exxon doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Ford faces lower Q2 sales and EV weakness, but cost controls, product mix and valuation support its long-term case as investors await clearer guidance.
ToplineFord on Friday issued a recall involving more than half a million of its Bronco SUVs, citing a wiring defect that could start a fire in the engine, according to a regulatory filing—another large-scale recall for the legacy automaker in recent months following a record-setting number of notices last year.
The legacy automaker has recalled more vehicles in the U.S. than any other this year.
Getty Images
Key FactsFord’s recall covers Bronco models manufactured between 2021 and 2026, including some of its Bronco Raptors, according to a National Highway Traffic Safety Administration filing on Friday.
The vehicles may include a defect that may cause a short in the engine compartment’s wiring harness, potentially creating heat or a spark that could result in fire, Ford disclosed to regulators.
Regulators said drivers with affected vehicles may notice smoke in their air vents or a cluster warning message before seeing flames from the passenger side engine compartment area.
Ford said it is aware of at least 15 incidents indicating evidence of a fire originating from the engine compartment wiring harness, though the automaker said it was not aware of any reports of accidents or injuries related to the defect.
Owners will be notified about the recall on Aug. 24, according to regulators, and Ford said they would install a new covering of the wiring compartment for free.
big number60. That’s how many recalls Ford has issued in 2026, by far the most of any automaker, ranking ahead of Chrysler (24), General Motors (19) and Hyundai (19). Ford issued 153 recalls in 2025, the most ever in a single year, involving 12.9 million vehicles, according to federal data. That was more than the next four automakers, including Chrysler (53), Forest River (36), General Motors (28) and International Motors (26), combined.
key backgroundFord's record-setting pace of recall notices has continued into 2026. The automaker recalled more than 4 million vehicles in February, marking one of the largest-ever in U.S. history, over a software glitch in its top-selling F-series trucks. Another 1.4 million F-150s were recalled in April for a defect that may cause the vehicles to downshift unexpectedly, which regulators said could increase the risk of a crash.
further readingForbesFord Recalls 1.4 Million Top-Selling F-150s Over Downshifting IssueBy Ty Roush
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
For the quarter ended June 2026, Verizon Communications (VZ - Free Report) reported revenue of $34.25 billion, down 0.7% over the same period last year. EPS came in at $1.30, compared to $1.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $35.31 billion, representing a surprise of -3%. The company delivered an EPS surprise of +2.36%, with the consensus EPS estimate being $1.27.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Retail postpaid ARPA: $168.35 versus the three-analyst average estimate of $162.64.Wireless - Retail Prepaid Connections: 19.35 million versus the three-analyst average estimate of 19.34 million.Churn rate - Total Wireless - Postpaid Phone: 0.9% versus 0.9% estimated by three analysts on average.Wireless - Retail postpaid Connections: 126.62 million compared to the 126.72 million average estimate based on three analysts.Operating Revenues- Wireless equipment revenues: $5.02 billion versus $6.16 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -19.7% change.Operating Revenues- Service revenues and other: $29.23 billion versus the four-analyst average estimate of $29.06 billion. The reported number represents a year-over-year change of +3.5%.Total reportable segments operating revenues: $34.25 billion versus the four-analyst average estimate of $34.98 billion.Operating revenues- Consumer: $26.24 billion versus the four-analyst average estimate of $27.38 billion. The reported number represents a year-over-year change of -1.5%.Operating revenues- Business: $7.16 billion versus $7.45 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change.Operating revenues- Business- Other: $2.58 billion versus the three-analyst average estimate of $2.77 billion.Operating revenues- Business- Wireless equipment: $846 million versus the three-analyst average estimate of $908.48 million.Operating revenues- Consumer- Mobility and broadband service: $19.64 billion versus the three-analyst average estimate of $19.5 billion.View all Key Company Metrics for Verizon here>>>
Shares of Verizon have returned -4.9% over the past month versus the Zacks S&P 500 composite's +0.6% 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.
SummaryVerizon Communications Inc. delivered mixed Q2 results, with revenue missing expectations but record adjusted EBITDA and EPS exceeding forecasts.VZ's dividend remains well-covered, with a Q2 free cash flow payout ratio of 45% and strong operating cash flow supporting ongoing distributions.Despite a significant debt load rising to $165 billion, the net debt-to-adjusted EBITDA ratio stands at 2.5x, which is standard for the sector.Looking ahead, VZ expects 2026 service revenue growth of 2.5-3.0%, adjusted EPS growth of 6.0-7.0%, and free cash flow up 9-10%.Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More » RiverNorthPhotography/iStock Unreleased via Getty Images
This season's Q2 earnings cycle is officially underway. Having already reviewed several major financial institutions that traditionally kick off the reporting period, we are now entering the thick of the season. Today, we turn our attention to our
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Verizon Communications Inc. (VZ) Q2 2026 Earnings Call July 24, 2026 8:30 AM EDT
Company Participants
Colleen Ostrowski - Senior Vice President of Investor Relations
Daniel Schulman - Director & CEO
Anthony Skiadas - Executive VP & CFO
Conference Call Participants
Sean Diffley - Morgan Stanley, Research Division
Michael Rollins - Citigroup Inc., Research Division
John Hodulik - UBS Investment Bank, Research Division
Michael Ng - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Good morning, and welcome to Verizon's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.
I would now like to turn the call over to Colleen Ostrowski, Senior Vice President, Investor Relations.
Colleen Ostrowski
Senior Vice President of Investor Relations
Thanks, Brad. Good morning, and welcome to our second quarter 2026 earnings call. I'm Colleen Ostrowski, and on the call with me this morning are our Chief Executive Officer, Dan Schulman; and Tony Skiadas, our CFO.
Before we begin, I'd like to point you to our safe harbor statement, which can be found in the earnings presentation and on our Investor Relations website. Our comments this morning may include forward-looking statements, which are subject to risks and uncertainties. Factors that may affect future results are discussed in our SEC filings. This presentation also contains non-GAAP financial measures, and you can find reconciliations of these measures in the materials on our website.
As a reminder, on June 29, 2026, we filed an 8-K with the Securities and Exchange Commission, which disclosed our agreement to form a joint venture with BT Group plc to combine our international wireline businesses. As such, the net assets that Verizon will contribute to the JV are now classified as assets and liabilities held for sale and have been moved from Verizon Business Group to Corporate and
(Kitco News) - Gold's inability to hold gains above $4,100 an ounce continues to highlight near-term downside risks. However, an expert at the world’s largest asset manager continues to recommend investors maintain some exposure to the precious metal.
In his latest note on gold, Russ Koesterich, Portfolio Manager for BlackRock Global Allocation Strategy, said that although gold has fallen out of favor among investors who are now focused on strong earnings and cash flow, the long-term case for holding the precious metal remains intact.
Koesterich noted that after a strong start to the year, gold prices have fallen about 25% from their all-time high in January and are down about 7% for the year. He explained that gold’s historic rally at the start of the year reshaped its role in investors' portfolios. Because of its strong momentum, gold became less of a safe-haven asset.
“Rather than providing downside protection, gold added risk to a portfolio,” he said.
However, he added that the eventual shift in momentum only partly explains the sharp, months-long correction.
He pointed out that the primary driver behind gold’s decline has been renewed strength in the U.S. dollar.
“Despite increasing chatter of a ‘debasement trade,’ the dollar has rallied sharply since the January lows, with the Dollar Index (DXY) up more than 6%. Concerns over a global energy shock, a resilient U.S. stock market and a dramatic reversal in expected Federal Reserve policy have all led to a stronger dollar,” he said. “As the dollar has risen, so have long-term interest rates, especially real or inflation-adjusted rates. Real 10-year yields, derived from the TIPS market, have gone from around 1.65% in early March to 2.20% today. This shift in the rate regime has been another obstacle for gold.”
He added that another important headwind is the fact that gold “is not an AI stock.”
“Even within the stock market, performance has increasingly been driven by an increasingly small set of AI companies experiencing outsized earnings growth. As an asset with no earnings, investors are treating gold the same way they’re treating slow-growth, stable companies, by basically ignoring it,” he said.
Despite these headwinds, Koesterich said the precious metal still plays an important role in diversified portfolios.
“The structural reasons to hold gold remain intact. Debt and deficits remain at historic levels, debasement remains a long-term risk and while gold did not work in March, geopolitics have not become any more stable. All of which still argues for maintaining a modest gold position in portfolios,” he said.
Gold is looking to end the week with modest gains as it continues to consolidate near critical support levels. Spot gold last traded at $4,074.70 an ounce, up 1.45% from last Friday’s close.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
In its upcoming report, Starbucks (SBUX - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.66 per share, reflecting an increase of 32% compared to the same period last year. Revenues are forecasted to be $9.44 billion, representing a year-over-year decrease of 0.2%.
The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Starbucks metrics that are commonly monitored and projected by Wall Street analysts.
The consensus among analysts is that 'Net Revenues- Company-operated stores' will reach $7.52 billion. The estimate indicates a change of -3.7% from the prior-year quarter.
Analysts forecast 'Net Revenues- Licensed stores' to reach $1.24 billion. The estimate points to a change of +12.3% from the year-ago quarter.
The consensus estimate for 'Net Revenues- Other' stands at $624.43 million. The estimate indicates a change of +16.1% from the prior-year quarter.
Analysts' assessment points toward 'Net Revenues- Channel Development' reaching $558.27 million. The estimate indicates a change of +15.4% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Revenues- North America' will likely reach $7.29 billion. The estimate indicates a change of +5.3% from the prior-year quarter.
The average prediction of analysts places 'Net Revenues- Company-operated stores- International' at $920.14 million. The estimate points to a change of -39.7% from the year-ago quarter.
According to the collective judgment of analysts, 'Net Revenues- Licensed stores- International' should come in at $535.29 million. The estimate indicates a year-over-year change of +15.1%.
Analysts predict that the 'Net Revenues- Licensed stores- North America' will reach $649.92 million. The estimate points to a change of +1.5% from the year-ago quarter.
It is projected by analysts that the 'Total Stores' will reach 39,717 . The estimate is in contrast to the year-ago figure of 41,097 .
Based on the collective assessment of analysts, 'Total Stores - International' should arrive at 22,912 . Compared to the current estimate, the company reported 22,363 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Total Company-operated stores EOP' of 15,643 . Compared to the present estimate, the company reported 21,730 in the same quarter last year.
Analysts expect 'Total Licensed stores EOP' to come in at 23,660 . Compared to the present estimate, the company reported 19,367 in the same quarter last year.
View all Key Company Metrics for Starbucks here>>>
Over the past month, shares of Starbucks have returned +0.1% versus the Zacks S&P 500 composite's +0.6% change. Currently, SBUX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SBUX heads into Q3 earnings with improving traffic, loyalty momentum and product innovation, while investors await greater clarity on near-term growth.
Colgate-Palmolive (CL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis consumer products maker is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +3.3%.
Revenues are expected to be $5.35 billion, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Colgate-Palmolive?For Colgate-Palmolive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.78%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Colgate-Palmolive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Colgate-Palmolive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Consumer Products - Staples industry, Procter & Gamble (PG - Free Report) , is soon expected to post earnings of $1.41 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -4.7%. This quarter's revenue is expected to be $21.36 billion, up 2.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for P&G has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.23%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
For most of the AI boom, investors have sorted semiconductor companies into neat categories.
NVIDIA Corp. (NASDAQ:NVDA) dominated AI accelerators.
Qualcomm Inc. (NASDAQ:QCOM) stayed trapped in the “smartphone chipmaker” bucket.
Citrini Research argues that classification may soon become outdated. The business underneath Qualcomm is turning into something else.
• Qualcomm stock is showing weakness. Why is QCOM stock trading lower?
Qualcomm Is Trying To Attack AI’s “Memory Wall”In the latest edition of its Citrini Semis Substack, Citrini Research highlighted that Qualcomm’s transformation extends far beyond smartphones.
The firm said the company is making a credible push into AI infrastructure — a market many investors still aren’t pricing in.
Instead, it’s attempting to solve one of artificial intelligence’s biggest bottlenecks: the exploding cost of moving data between memory and processors.
The investment thesis doesn’t revolve around another AI accelerator.
It revolves around architecture.
Citrini argues that today’s AI infrastructure faces a growing “memory wall,” where processors have become dramatically faster while memory bandwidth struggles to keep up.
High-bandwidth memory has become the industry’s preferred solution, but soaring costs are creating incentives to pursue alternative architectures.
“HBM isn’t an immutable requirement, it’s just the industry’s current answer to the cost of moving enormous amounts of data back and forth between memory and the accelerator,” Citrini wrote.
The firm believes Qualcomm’s newly introduced High Bandwidth Compute (HBC) architecture could become one of those alternatives.
Instead of relying on traditional HBM packaging, Qualcomm places compute directly beneath LPDDR memory, reducing data movement while avoiding expensive advanced packaging technologies.
According to Qualcomm executive Tony Pialis, the architecture delivers significantly higher bandwidth efficiency while reducing power consumption.
If successful, Qualcomm wouldn’t simply be selling another AI chip.
It would be attacking one of AI infrastructure’s largest cost centers.
Why Investors Should Focus On 2029, Not Next QuarterSkeptics argue that Qualcomm’s data center business remains years away from contributing meaningful revenue.
Citrini acknowledges that point but says investors are focusing on the wrong timeline.
Citrini acknowledges that production timelines remain early, with AI200 systems arriving this year and larger hyperscaler deployments expected later this decade.
Semiconductor stocks are routinely valued years ahead of realized earnings, and the firm said 2028 and 2029 are “precisely the year we are putting multiples on this.”
Qualcomm does not need billions in AI revenue today. It needs investors to believe those revenues are becoming credible.
The pieces have been bought rather than built.
Qualcomm closed a $2.3 billion acquisition of Alphawave in December and agreed in June to buy AI software firm Modular for roughly $3.9 billion.
Where Does Wall Street Stand?According to Benzinga Analyst Ratings, the consensus on Qualcomm is Neutral, with an average price target of $207.93. That implies roughly 22% upside from the July 22 close of $171.11, with targets running from $100 to a Street-high $300.
Qualcomm reports fiscal third-quarter results on July 29.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Analysts on Wall Street project that Qualcomm (QCOM - Free Report) will announce quarterly earnings of $2.22 per share in its forthcoming report, representing a decline of 19.9% year over year. Revenues are projected to reach $9.71 billion, declining 6.3% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Qualcomm metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenues- QCT' stands at $8.26 billion. The estimate indicates a change of -8.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- QTL' should arrive at $1.25 billion. The estimate suggests a change of -5.3% year over year.
Analysts forecast 'Revenues- QCT- Automotive' to reach $1.49 billion. The estimate points to a change of +51.4% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- QCT- Handsets' reaching $4.92 billion. The estimate points to a change of -22.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- QCT- IoT (internet of things)' of $1.83 billion. The estimate indicates a change of +9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Reconciling items' will likely reach $141.00 million. The estimate points to a change of +161.1% from the year-ago quarter.
Analysts expect 'Income / (loss) before taxes- QTL' to come in at $854.11 million. Compared to the present estimate, the company reported $942.00 million in the same quarter last year.
Analysts predict that the 'Income / (loss) before taxes- QCT' will reach $1.99 billion. Compared to the current estimate, the company reported $2.67 billion in the same quarter of the previous year.
View all Key Company Metrics for Qualcomm here>>>
Shares of Qualcomm have experienced a change of -16.5% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), QCOM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Moderna (MRNA - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis biotechnology company is expected to post quarterly loss of $1.97 per share in its upcoming report, which represents a year-over-year change of +7.5%.
Revenues are expected to be $126.65 million, down 10.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 16.85% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Moderna?For Moderna, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Moderna will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Moderna would post a loss of$3.02 per share when it actually produced a loss of -$1.18, delivering a surprise of +60.93%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Moderna doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Medical - Biomedical and Genetics industry, Bristol Myers Squibb (BMY - Free Report) , is soon expected to post earnings of $1.59 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.9%. This quarter's revenue is expected to be $11.67 billion, down 4.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Bristol Myers has been revised 1.1% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.51%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Bristol Myers will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Live Coverage Updates appear automatically as they are published.
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The market’s tone improved Friday as oil prices backed off and investors latched onto signs that U.S.-Iran diplomacy may not be dead. The Nasdaq Composite is up 0.28%, while the S&P 500 rose 0.6% and the Dow Jones Industrial Average gained 333 points, or 0.7%, helped by a 3% jump in Apple (Nasdaq: AAPL) stock.
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The White House kept tariff risk in the market’s path, extending a 10% baseline on imports from nearly 60 countries and the EU, according to Bloomberg. The move keeps trade friction front and center just as investors are already weighing higher oil, rising yields, and mixed tech earnings.
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Intel’s (Nasdaq: INTC) earnings landed as a stronger turnaround signal than expected. Revenue jumped 25% to $16.1 billion, ahead of the $14.42 billion estimate and marking the company’s fastest quarterly growth in 15 years. Adjusted EPS of $0.42 doubled expectations, and guidance also came in above Wall Street’s bar, though the stock gave back its initial post-earnings pop during Friday trading. YTD shares are up 163.5%.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite hovered near the flatline Friday as the market tried to steady itself after Thursday’s tech-led selloff. The S&P 500 was roughly flat, while the Dow Jones Industrial Average added 89 points, or 0.2%. All three major averages remained on track for a losing week.
Oil prices remain volatile. Brent crude eased 3% to roughly $97 per barrel after topping $100 earlier this week for the first time since late May, while WTI slipped 2% to trade above $89. The pullback took some pressure off a market that had been wrestling with a fresh spike in Middle East risk, higher energy prices, and rising yields.
Tech earnings are now moving through the tape, and the early read is mixed: Google (Nasdaq: GOOGL) is spending aggressively to stay ahead in AI, while Tesla (Nasdaq: TSLA) gave investors another reason to question the near-term profit story.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Here’s a look at where things stand as of early morning trading:
Dow Jones Industrial Average: 51,766 Up 0.11%
Nasdaq Composite: 25,000 Down 0.55%
S&P 500: 7,403 Down 0.07%
Market Movers Nvidia (Nasdaq: NVDA) CEO Jensen Huang made an appearance on X, using his first post to back open AI models, arguing that AI will transform every industry and be built by every country. He framed open models as a safety, cybersecurity, innovation, and sovereignty issue, adding that “the world needs both frontier closed models and frontier open models.”
Google and Verizon (NYSE: VZ) signed a $1 billion data center infrastructure agreement aimed at expanding AI and cloud capacity. The deal gives Google another enterprise-scale infrastructure partner while Verizon gets a clearer lane into the AI data center buildout.
SpaceX (Nasdaq: SPCX) has become one of the biggest casualties in a space-stock selloff that started before its June 12 debut. The Procure Space ETF (Nasdaq: UFO) peaked in late May, and Bespoke Investment Group recently called the move a “violent crash in space-related stocks.” SpaceX rallied out of the gate, but it entered the public market after the sector’s momentum had already cracked.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
HomeIndustriesTech StocksTech StocksThe company is impressing analysts with its profit performanceJuly 24, 2026, 10:10 a.m. ET
Intel just posted its strongest revenue growth in 15 years — and perhaps that wasn’t even the biggest highlight from its report, according to one analyst.
Seaport Research’s Jay Goldberg wrote that the “standout feature,” in his view, was Intel’s profitability. Pro-forma gross margins topped 40% for the first time since the start of 2024, he said. And Intel’s INTC pro-forma operating margin of 17% was its highest since early 2022, demonstrating to Goldberg that the company’s “high fixed-cost model” has “considerable operating leverage.”
Intel (NASDAQ: INTC) delivered one of its strongest earnings beats in years on July 24, prompting some analysts to revise their Intel stock price targets.
For instance, Seaport Global Securities has raised its Intel stock prediction 2026 from $90 to $125 while reiterating a “Buy” rating, citing strong quarterly results and an improving outlook.
Specifically, the brokerage highlighted that Intel’s return to gross margins were above 40% for the first time in two years, which is seen as a key sign that the company’s turnaround is gaining traction.
Seaport also pointed to management’s decision to increase capital expenditure forecast for 2026 and likely 2027, arguing the chipmaker would not commit without securing meaningful customer demand. Intel’s confirmation that its 14A manufacturing process remains on track seems to support this.
Intel share price YTD. Source: Finbold DA Davidson raises INTC stock price target to $100 DA Davidson also raised its price target on Intel, lifting it from $77 to $100 while maintaining a “Neutral” rating. Analysts noted that the latest quarterly results exceeded Wall Street expectations on both revenue and earnings, which shows the growing importance of the firm’s CPU business.
“We maintain our NEUTRAL rating and raise our price target to $100 from $77 on INTC following strong 2Q26 earnings that were highlighted by a significant beat on top and bottom-line expectations,” DA Davidson wrote.
Moreover, DA Davidson pointed to increased capital expenditure plans as a sign that leadership is continuing to attract new customers as demand for domestic semiconductor manufacturing accelerates in the United States.
Cantor Fitzgerald cuts Intel stock price target Conversely, Cantor Fitzgerald lowered its Intel share price forecast from $150 to $125, albeit while reiterating a “Neutral” rating and stating that the long-term outlook still remains promising.
On the more cautious end, Cantor pointed to uncertainty surrounding Intel’s client computing business, server CPU market share losses, and lack of new customer announcements. In addition, the brokerage also noted ongoing speculation that Intel could pursue an equity raise.
Nonetheless, the firm remains constructive on Intel, especially thanks to its ties to Taiwan Semiconductor Manufacturing (NYSE: TSM), which could strengthen both the company and the U.S. semiconductor industry.
Overall, Cantor concluded that investors are likely not going to be more bullish until Intel shows greater revenue potential in its front- and back-end manufacturing operations.
Featured image via Shutterstock
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Key Takeaways Intel reported Q2 revenue of $16.1B, up 25% year over year, with Data Center and AI revenue up 59%.INTC increased 2026 capital spending to more than $20 billion amid stronger customer demand signals.Intel Foundry revenue reached $5.8 billion as yields, factory scale and Intel 18A production improved. Intel Corporation (INTC - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating demand for AI infrastructure, improving manufacturing execution and increased investment to expand capacity. Management highlighted stronger-than-expected execution while pointing to supply constraints as the key near-term challenge.
The company also raised its capital spending outlook as executives detailed progress across CPUs, foundry operations, advanced packaging and purpose-built silicon.
INTC Expands AI Infrastructure FocusCEO Lip-Bu Tan said Intel is seeing strong demand across products and foundry operations, with AI-driven businesses growing more than 70% year over year. He emphasized that the company’s x86 CPU franchise, packaging technology and wafer network remain central assets.
Tan highlighted improving execution at Intel Foundry, noting that Intel 18A production exceeded internal targets due to better yields, cycle times and wafer starts. He also discussed progress toward Intel 14A development and future customer adoption.
Management positioned advanced packaging and purpose-built silicon as additional growth areas. The company said its design services business revenue nearly tripled year over year, supported by expanding AI-related opportunities.
Intel Sees Strong Server DemandIntel reported second-quarter revenue of $16.1 billion, up 25% year over year, while non-GAAP EPS came in at $0.42 versus the Zacks Consensus Estimate of $0.21. Revenue exceeded the Zacks Consensus Estimate of $14.41 billion.
Data Center and AI revenue reached $6.3 billion, up 59% year over year, driven by hyperscale and enterprise demand. CFO David Zinsner said server demand is outpacing available supply.
The company cited Xeon 6 momentum and expanding demand for AI infrastructure as important contributors. Management said capacity expansion remains critical to meeting customer requirements.
INTC Pushes Foundry Investment PlansZinsner said Intel is increasing 2026 capital expenditures to more than $20 billion due to stronger customer demand signals. Investments will focus largely on manufacturing tools, advanced nodes and packaging capacity.
The company said Intel Foundry revenue was $5.8 billion in the quarter, while operating losses improved sequentially as yields and factory scale increased.
Management stressed that spending decisions remain tied to customer commitments and expected returns. Executives said future investments will be aligned with demand visibility rather than capacity expansion alone.
Intel Navigates Supply ConstraintsIntel said industry-wide shortages in wafers, memory and substrates continue to limit supply. Management expects supply improvements later in the year but noted that demand remains ahead of production capacity.
The company expects third-quarter 2026 revenue of $15.8 billion to $16.8 billion, with non-GAAP EPS of $0.38 and non-GAAP gross margin of 42% at the midpoint.
Executives also noted pressure in the PC market, citing memory constraints and weaker second-half consumption trends. Edge AI deployments and improving product availability provide offsets.
INTC Addresses Analyst ConcernsA Morgan Stanley analyst asked about server market share and competition. Tan said Intel is focused on strengthening its server roadmap through products including Clearwater Forest, Diamond Rapids and Coral Rapids.
A Bernstein analyst questioned client strength and margin impacts. Zinsner explained that pricing, product mix and higher-end demand supported client revenue, while inventory actions affected segment profitability.
A Wells Fargo analyst asked about ASIC growth. Management said the business is approaching a $2 billion run rate and expects further expansion supported by AI-related demand and Intel’s design capabilities.
Intel Sets Path for TransformationIntel’s leadership emphasized continued progress in its operational transformation, with greater focus on execution, customer relationships and manufacturing discipline. Management said the company is building capabilities across computing, foundry and packaging.
The company highlighted collaborations involving Google Cloud, SambaNova and Fortinet as part of its broader AI strategy. These efforts are aimed at expanding Intel’s role in emerging AI workloads.
Executives maintained that supply expansion, technology execution and customer engagement remain the central priorities. The call reflected a strategy focused on scaling AI-related opportunities while improving manufacturing performance.
Zacks Rank and Style Scores SignalsIntel carries a Zacks Rank #1 (Strong Buy), indicating the strongest ranking category in the Zacks Rank system. The Zacks Rank is driven by earnings estimate revisions and can change after analysts update their expectations following reported results.You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has a Value Score of F, Growth Score of C, Momentum Score of B and VGM Score of D. The Style Scores complement the Zacks Rank by evaluating value, growth and momentum characteristics, with higher scores generally representing stronger attributes.
Intel (INTC) posted stronger-than-expected earnings as AI strengthens the company's tech backbone. The stock still fell following Friday's opening bell.
The importance of an earnings report has become almost overstated. However, it’s hard to understate what Intel Corporation NASDAQ: INTC faced heading into its Q2 2026 earnings report. The PHLX Semiconductor Index had fallen roughly 19% from its June 22 peak. Every constituent was in the red. Nearly $2 trillion in sector value had been erased.
Intel Today
$95.51 -4.72 (-4.71%)
As of 12:25 PM Eastern
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52-Week Range$18.97▼
$142.35Price Target$105.30
The sell-off happened because investors questioned whether AI infrastructure spending can justify the current multiples being assigned to chip stocks. Investors needed Intel's results to answer one question: Is this a healthy reset, or early proof that demand is cracking?
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The headline numbers from the report were encouraging. Revenue hit $16.1 billion, up 25% year-over-year, roughly $1.8 billion above the midpoint of guidance. It was also Intel's fastest growth rate since 2011.
Adjusted earnings per share (EPS) of 42 cents doubled the 21 cents analysts expected. Gross margin expanded to 41.8%, nearly 280 basis points above management's own guide. The stock jumped as much as 12-13% after hours, briefly touching levels above $112.
For a sector trading on fear all month, the earnings report seems to demand a repricing. But the details underneath still leave room for caution.
Data Center Demand Looks Real, Not a Rebound StoryThe clearest signal was in the company’s Data Center and AI Group segment. Revenue jumped 59% year-over-year to $6.3 billion. Management said AI-linked businesses grew more than 70% year-over-year and now make up roughly 70% of total revenue.
Chief financial officer (CFO) David Zinsner told analysts that server CPU demand has improved since last quarter. He pointed to double-digit industry unit growth through 2028. Intel also disclosed 10 long-term supply agreements with customers. Some customers want to lock in pricing. Others are focusing purely on securing volume.
Here's why that matters. Intel said demand is still outstripping available supply. It cited industry-wide shortages of substrates and memory that are expected to persist into next year. That's a different story than the bear case behind July's sell-off, which centered on fears that hyperscalers might pull back AI capital spending. Intel's numbers argue that the bottleneck is hardware supply, not fading demand.
Margins Are Recovering, But Foundry Still Isn't Fully ProvenMargin recovery is another pillar of the bull case, and it's real. Non-GAAP gross margin came in at 41.8% compared to just 29.7% a year ago. For a chip company, that happens because of scale, a richer product mix, and disciplined pricing.
Foundry is where caution still belongs. Intel Foundry revenue rose 31% to $5.8 billion. 18A wafer output grew more than 50% quarter-over-quarter, with yields ahead of internal targets. But external Foundry revenue was just $293 million, which was about 5% of the segment's total. The Foundry operating loss narrowed to roughly $2.1 billion but remains substantial.
Intel landed Fortinet NASDAQ: FTNT as a named foundry customer this week. That's on an older node, though, not the leading-edge 18A business investors need validated. Until a marquee customer commits real volume to 18A or 14A, Foundry will still be a story of internal progress, not proven outside demand.
Guidance Suggests the Beat Wasn't a One-Quarter FlukeIntel guided Q3 revenue to $15.8-$16.8 billion. It guided non-GAAP EPS to 38 cents. Both figures came in well above Wall Street's roughly $15.1 billion and 27 cents estimates. Management also raised its 2026 capital expenditure (CapEx) outlook from $18 billion to more than $20 billion, with 2027 spending set to climb further.
This marks Intel's seventh straight quarter of beating its own outlook. That looks like a management team that has recalibrated expectations lower than what it can actually deliver.
The Tougher Comp Problem AheadIntel has now strung together two quarters of exceptional, AI-fueled growth. The Data Center and AI segment's 59% year-over-year jump follows strong growth last quarter. That makes the next few comparisons much harder.
However, beating a 25% growth quarter against an easy prior-year base is one thing. Beating it again against a quarter that grew 25% is another. Some deceleration in year-over-year growth rates should be expected over the next two or three quarters, even if the underlying business stays healthy. That's not necessarily a red flag, but it does raise the bar for future beats.
Buy the Dip, or Stay Cautious?This report was bullish for INTC. Demand strength, margin recovery, and raised guidance all point to real AI-driven growth. The main unresolved risk is specific to its Foundry business. In that regard, Intel remains a story stock until external 18A customers show up.
Valuation is an interesting wrinkle. Even if the stock pops in the sessions following earnings, Intel wouldn't look expensive against its new earnings power. If anything, shares look modestly undervalued relative to the growth just reported. That's a reasonable setup for patient buyers, but not necessarily one to chase into strength.
Given tougher comps ahead, this looks like a hold rather than a chase. A pullback toward more attractive levels would offer a better entry point. That's not a bearish call on the business. It's a preference for a better price on a company that's proven it can execute.
Intel Corporation (INTC) Price Chart for Friday, July, 24, 2026
For the broader chip dip, Intel's results support the bullish read on demand. Supply constraints, long-term agreements, and raised CapEx all argue the AI buildout isn't stalling. But Intel is one data point in a 30-stock index. The sharpest damage has concentrated in memory and hyper-growth momentum names that don't share Intel's specific demand mix.
Investors reacting to this print have a reasonable case for treating Intel as attractive on a pullback. Diversified semiconductor ETF exposure remains a sensible way to play the broader recovery. Intel's strength doesn't automatically clear every beaten-down chip name of the concerns that drove this sell-off.
Should You Invest $1,000 in Intel Right Now?Before you consider Intel, you'll want to hear this.
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Intel (NASDAQ:INTC | INTC Price Prediction) just delivered its strongest revenue growth in more than 15 years, and our model sees more room to run. The stock trades at $100.23 after a stunning 171.63% year-to-date rally.
Our 24/7 Wall St. price target for Intel is $130.66, implying 30.36% upside over the next 12 months. That earns a buy rating with a 90% confidence level. This is a high-conviction call anchored to a genuine earnings inflection.
Metric Value Current Price $100.23 24/7 Wall St. Price Target $130.66 Upside 30.36% Recommendation BUY Confidence Level 90% The Rally Has Legs After a Blowout Q2 Intel reported Q2 fiscal 2026 on July 23, 2026, and the numbers reframed the story. Revenue hit $16.13 billion, up 25.4% year over year, beating estimates by 11.64%. Non-GAAP EPS came in at $0.42 versus a $0.10 estimate, a 320% surprise. The Data Center and AI segment surged 59% to $6.26 billion, and CEO Lip-Bu Tan called it “our strongest revenue growth in more than fifteen years.”
The stock has cooled off recently, down 24.23% over the past month from a peak of $142.35, but shares are up 326.69% over the past year. That pullback has compressed the valuation multiple relative to peers.
Why Bulls See a Breakout Ahead The bull case rests on three pillars:
AI demand for server CPUs is broadening, and Intel’s Xeon 6 was selected as the host CPU for NVIDIA DGX Rubin NVL8 Intel 18A-P entered risk production on schedule, and Panther Lake is in high-volume manufacturing using ASML High NA EUV tools Intel raised 2026 CapEx to over $20 billion, signaling management confidence echoed by ecosystem partners The $5 billion NVIDIA equity investment and $2 billion SoftBank investment add strategic ballast. If Q3 lands at the high end of guidance ($16.8 billion) with 42% non-GAAP gross margin, a bull-case path to $138.44 becomes credible.
Morgan Stanley analyst Joseph Moore raised the firm’s price target on Intel to $84 from $75 and keeps an Equal Weight rating on the shares.
The Risks Worth Watching The GAAP net loss of $11.03 billion looks ugly, driven by a $12.53 billion non-cash charge on CHIPS Act escrow shares, not operating deterioration. Operating income actually rose 156.55% year over year.
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Intel Foundry is running roughly $2.1 billion in quarterly operating losses, and management flagged that Intel 14A could be paused if customer demand is insufficient. A bear case with Foundry misses and export-control friction points toward the model’s downside scenario of $96.58.
How Intel Compares to AMD and Qualcomm AMD (NASDAQ:AMD) is the natural x86 rival. AMD posted Q1 fiscal 2026 revenue of $10.25 billion, up 37.9%, with Data Center up 57% to $5.78 billion. The stock trades at a trailing P/E of 203 with a market cap of $880 billion. Intel’s forward P/E of 119 looks defensible against that.
Qualcomm (NASDAQ:QCOM) trades at a trailing P/E of 33 with an operating margin of 27.9%. Intel is nowhere near that on profitability yet, but its growth is now double Qualcomm’s. On balance, the peer set makes our $130.66 target look reasonable rather than aggressive.
Company Forward/Trailing P/E Latest Revenue Growth Intel 119x fwd +25.4% AMD 203x ttm +37.9% Qualcomm 33x ttm -3.5% Intel Price Prediction 2026-2030 The 24/7 Wall St. price target is $130.66, the recommendation is buy, and confidence is high. The Q2 earnings inflection combined with sustained AI CPU demand tips the scale. The thesis strengthens if Q3 revenue lands above $16.3 billion with gross margin holding near 42%. The thesis weakens if Foundry losses widen materially or 18A yields disappoint.
Here is where our model projects Intel could trade in the coming years, extending base-case growth assumptions.
Year 24/7 Wall St. Price Target 2026 $130 2027 $148 2028 $170 2029 $192 2030 $214 These projections assume Intel executes on 18A and 14A ramps and Foundry losses narrow steadily. Significant upside could come from anchor foundry customers signing multi-year commitments. Downside would come from a stalled 14A roadmap.
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Key Takeaways Management targets 4-6% revenue growth and 10-12% adjusted operating income growth.FedEx Freight's revenue rose 4.8% as revenue per shipment climbed 11.5% despite lower volumes.Technology and network investments aim to improve freight efficiency, service and connectivity. FedEx Freight ((FDXF - Free Report) ) is entering public markets as a pure-play less-than-truckload carrier at a time when volume growth remains uneven. The company’s investment case now rests on whether pricing, freight mix and internal efficiency can offset softer shipment activity.
That makes FDXF a useful test of the current LTL cycle. Demand may be under pressure, but management is leaning on revenue quality, network density, and technology to protect margins.
FedEx Freight Is Leaning Into Revenue per ShipmentFourth-quarter revenues rose 4.8% year over year to $2.4 billion even as average daily shipments fell 5.9% to 86.7 thousand. The offset came from stronger revenue per shipment, which increased 11.5% to $415.22.
Weight per shipment rose 3% to 948 pounds, while revenue per hundredweight increased 8.2% to $43.79. Those metrics matter because heavier shipments and better yield can help support revenues when freight counts remain under pressure.
FDXF Margin Expansion Depends on Network OptimizationManagement expects medium-term revenue growth of 4-6% and adjusted operating income growth of 10-12%. That gap implies the company is targeting faster profit growth than revenue growth, driven by operating improvements rather than just better demand.
Capital discipline will be central to that plan. The company expects its capital-expenditure-to-revenue ratio to be around 5%, while investments are being directed toward the network, technology and freight-focused operations. Old Dominion Freight Line ((ODFL - Free Report) ), another major LTL carrier, remains a key benchmark for investors watching service quality, pricing discipline and terminal productivity across the category.
FedEx Freight Faces a Cyclical LTL Demand BackdropFDXF serves manufacturers, retailers, distributors and other businesses, leaving it exposed to manufacturing activity, industrial production and business spending. In a slower economy, customers may ship fewer loads, creating pressure on volumes, pricing and margins.
Risks also include inflation, tariff-related uncertainty, geopolitical tension and supply-chain disruption. United Parcel Service ((UPS - Free Report) ), a broad transportation and logistics company, gives investors a wider freight and parcel comparison point when assessing how business spending and trade flows move through the transport sector.
FDXF Technology Spending Could Reshape Freight EfficiencyTechnology is a key part of the standalone strategy. FedEx Freight expects to benefit from technology investments and optimized operations tailored specifically to freight customers.
The opportunity is operational as well as commercial. Dedicated technology spending could improve freight movement, customer service, network planning and supply-chain connectivity. As an independent company, FedEx Freight can focus capital on LTL priorities rather than competing internally with parcel and express operations.
FedEx Freight Ratings Temper the Emerging Trend StoryThe bottom line is that FDXF has a clear margin-improvement path, but the path depends on execution in a cyclical freight market. Pricing and mix helped the latest quarter, while lower shipments show that demand remains a constraint.
The stock currently carries a Zacks Rank #3 (Hold), which reflects a neutral near-term earnings-revision signal. The VGM Score of D and Momentum Score of F point to weak current market characteristics, while the Value Score of C and Growth Score of C suggest a more balanced profile on those two style measures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For investors, the combination argues for patience rather than a one-sided view. FedEx Freight has standalone advantages, scale and a targeted operating plan, but weak momentum and a neutral Rank indicate that earnings-revision support is not yet strong enough to fully validate the margin-growth story.
For the quarter ended June 2026, American Express (AXP - Free Report) reported revenue of $19.64 billion, up 10% over the same period last year. EPS came in at $4.53, compared to $4.08 in the year-ago quarter.
The reported revenue represents a surprise of +0.01% over the Zacks Consensus Estimate of $19.64 billion. With the consensus EPS estimate being $4.41, the EPS surprise was +2.72%.
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 American Express performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Network volumes: $516.80 billion versus the four-analyst average estimate of $520.90 billion.Book value per common share: $48.42 compared to the $49.31 average estimate based on two analysts.Billed business - Total: $455.80 billion versus the two-analyst average estimate of $459.77 billion.Total non-interest revenues: $14.99 billion compared to the $15.04 billion average estimate based on five analysts.Net Interest Income: $4.65 billion compared to the $4.67 billion average estimate based on five analysts.Non-interest revenues- Discount revenue: $10.16 billion compared to the $10.09 billion average estimate based on four analysts.Non-interest revenues- Net card fees: $2.86 billion compared to the $2.92 billion average estimate based on four analysts.Non-interest revenues- Service fees and other revenue: $1.96 billion compared to the $1.99 billion average estimate based on four analysts.Total Interest Income: $6.61 billion compared to the $6.69 billion average estimate based on four analysts.View all Key Company Metrics for American Express here>>>
Shares of American Express have returned -0.5% over the past month versus the Zacks S&P 500 composite's +0.6% 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.
Shares of American Express (AXP -5.08%) are down 6.5% at 10:25 a.m. ET. The payment card veteran reported Q2 2026 results last night, beating Wall Street's bottom-line expectations but falling just short of analyst consensus on revenues. The market's focus on a slight revenue miss seems odd, given that management also raised its full-year revenue guidance.
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Q2 by the numbers American Express posted 10% year-over-year revenue growth, landing at $19.64 billion. The average analyst was looking for $19.69 billion. Earnings rose 11% to $4.53 per diluted share. Here, the Street consensus pointed to $4.40 per share.
CEO Stephen Squeri called Q2 "another excellent quarter" with better-than-expected member spending growth. The company raised its full-year revenue growth guidance from 9-10% to 10%. It's a small boost, but half a percent makes a difference when you're managing $456 billion of card charges in a single quarter.
Image source: The Motley Fool.
Growth now, profits later So why are American Express shares plunging today, despite a solid earnings surprise and raised full-year revenue guidance? Well, the additional sales dollars will not trickle down to the bottom line. Management is reinvesting the extra capital into growth-oriented moves.
That's already going on. For example, higher fees for the Platinum Card contributed to the double-digit revenue growth in the first half, but the same program also lifted operating expenses by 12%. That's the cost of offering card perks that customers actually use.
Credit quality remains solid. Provisions for credit losses dropped to $1.1 billion from $1.4 billion a year ago, and the net write-off rate held flat at 2%. Card Member spending growth of 9% marked the highest rate in three years on a currency-adjusted basis.
At 15.9 times forward earnings, with credit quality strengthening and spending growth accelerating, this drop looks like a chance to buy a premium business at a discount. Use cash, not a credit card.
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in American Express. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
American Express AXP stock is in focus this morning after the credit card company reported its fiscal Q2 earnings that told a familiar story of premium strength.
AMEX came in ahead of Street estimates with an 11% year-on-year increase in earnings per share (EPS) to $4.53, while the firm's overall revenue went up 10% in the recent quarter to $19.6 billion.
However, underneath the glittering headline figures lies an increasingly costly structural evolution, one that’s weighing rather significantly on American Express stock on Friday morning.
AMEX added 3 million new proprietary cards during Q2 – with over three-quarters signing up for high-margin, fee-based accounts.
A massive slice of those additions continues to be Gen Z and Millennial consumers.
Yet, as younger cardholders flock to the brand, their enthusiastic adoption of “premium benefits” is turning into a double-edged sword for the company's operational margins.
Note that American Express shares are currently down over 13% versus the start of this year (2026)
American Express’s aggressive push to court younger demographics through refreshed Platinum and Gold card offerings has yielded millions of tech-savvy, lifestyle-focused customers.
However, Gen Z and Millennial cardholders operate differently than legacy members; they actively maximize every credit, travel pass, and dining stipend attached to their accounts.
This drove total quarterly operating expenses up 12% year-over-year.
Customer engagement and variable reward costs surged as airport lounge visits, hotel credits, and lifestyle perks were claimed at record volumes.
The average card member spent $6,759 in the second quarter – up from $6,393 last year – showing high engagement.
However, fulfilling those lifestyle promises requires huge capital. AMEX has successfully hooked a new generation, but funding their premium lifestyle is proving significantly more expensive than anticipated.
Despite beating quarterly profit expectations, AMEX shares dropped more than 5% following the announcement as investors focused heavily on the 12% expense hike.
The read for investors was simple: in a market where financial firms are expected to tighten belts, American Express is actually “accelerating” expenditure to defend its turf against competitors like JPMorgan Chase and Capital One.
Sure, the net write-offs remained comfortably low in the second quarter at 2%, proving credit health remains pristine – but narrowing margins due to a 50% increase in “Card Member Services” costs is becoming harder to ignore.
Market participants are concerned that if younger consumers continue rinsing the perk allowances while broader macroeconomic spending cools, expense growth could persistently beat transaction volume gains.
The ultimate fallout from this costly acquisition strategy was felt in AMEX’s forward guidance.
Strong first-half momentum prompted management to raise its full-year revenue growth outlook to about 10%.
Yet, notably, executives refused to raise the profit target, leaving EPS outlook frozen at $17.30 to $17.90.
That said, Wall Street hasn’t thrown in the towel on AMEX stock, though. Heading into the earnings print, the consensus rating on American Express stood at Overweight with a bullish $378 average price target.
Key Takeaways American Express beat Q2 EPS estimates as revenues rose 10% on stronger Card Member spending and fee growth.AXP reported 9% network volume growth, while credit loss provisions fell 23% due to a reserve release.AXP expects 2026 revenue growth of 10% and reaffirmed EPS guidance of $17.30-$17.90. American Express Company (AXP - Free Report) reported second-quarter 2026 earnings per share (EPS) of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year.
Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. The top line beat the consensus mark by a whisker.
The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
AXP’s Q2 Operational PerformanceNetwork volumes grew 9% year over year in the second quarter to $516.8 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.9 billion. Total interest income of $6.6 billion rose 5% year over year but missed the consensus mark of $6.7 billion. Provision for credit losses came in at $1.1 billion, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 12% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members, the refresh of the U.S. Platinum Card, greater use of Card Member benefits, and higher operating costs.
AXP’s Q2 Segmental PerformancesThe U.S. Consumer Services segment recorded pre-tax income of $2.1 billion, which grew 23% year over year and beat the Zacks Consensus Estimate by 27%. Total revenues, net of interest expenses, improved 11% year over year to $9.5 billion but marginally missed the Zacks Consensus Estimate. An expanding Gen-Z and Millennials’ customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $970 million rose 7% year over year in the second quarter but fell short of the Zacks Consensus Estimate of $972.8 million. Total revenues, net of interest expense, grew 7% year over year to $4.5 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $477 million, which rose 3% year over year but missed the Zacks Consensus Estimate of $908.8 million. Total revenues, net of interest expense, climbed 12% year over year to $3.6 billion but missed the consensus mark of $3.9 billion.
The Global Merchant and Network Services segment’s pre-tax net income of $1.1 billion advanced 7% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 8% year over year to $2.1 billion but came in lower than the consensus mark by 1.2%.
Corporate and Other incurred a pre-tax loss of $569 million in the second quarter, wider than the prior-year quarter’s loss of $550 million.
Balance Sheet (As of June 30, 2026)American Express exited the second quarter with cash & cash equivalents of $45.2 billion, which fell 5.3% from the 2025-end level. Total assets of $308.2 billion increased 2.7% from the figure at the end of 2025.
Long-term debt amounted to $57 billion, up 1.1% from the figure as of Dec. 31, 2025. Short-term borrowing was $2 billion.
Shareholders’ equity of $34.3 billion rose 2.4% from the 2025-end level. Return on average common equity remained flat year over year at 37.8% in the quarter under review.
Capital Deployment UpdateAmerican Express bought back 7 million common shares in the second quarter of 2026 for $2.2 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 OutlookAmerican Express now expects 2026 revenues to increase to 10% from the 2025 level. Management continues to estimate EPS in the range of $17.30-$17.90, the midpoint of which indicates an improvement of 14.4% from the 2025 figure.
AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are Victory Capital Holdings, Inc. (VCTR - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and Newmark Group, Inc. (NMRK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Victory Capital’s current-quarter earnings of $1.81 per share has witnessed five upward revisions in the past 30 days against none in the opposite direction. VCTR’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 6.9%. The consensus estimate for current-quarter revenues is pegged at $386 million, suggesting a 9.9% year-over-year jump.
The consensus estimate for Acadian Asset Management’s current-quarter earnings is pegged at $1.05 per share, which signals 64.1% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-quarter revenues of $179.4 million implies 43.7% year-over-year growth.
The consensus estimate for Newmark Group’s current-quarter earnings is pegged at 39 cents per share, which has witnessed one upward revision in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.1%. The consensus estimate for NMRK’s current-quarter revenues is pegged at $881 million, which implies a 16.1% year-over-year rise.
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For the quarter ended June 2026, Charter Communications (CHTR - Free Report) reported revenue of $13.53 billion, down 1.7% over the same period last year. EPS came in at $10.66, compared to $9.18 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $13.52 billion, representing a surprise of +0.06%. The company delivered an EPS surprise of +7.03%, with the consensus EPS estimate being $9.96.
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.
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 Charter performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Internet - Total Net Additions/Losses: -172 thousand versus -129.68 thousand estimated by three analysts on average.Video - Total Net Additions/Losses: -21 thousand versus -61.82 thousand estimated by three analysts on average.Video - Small Business - Net Additions/Losses: -10 thousand versus -5.15 thousand estimated by three analysts on average.Residential - Video - Net Additions/Losses: -11 thousand versus the three-analyst average estimate of -56.67 thousand.Revenues- Residential- Total: $10.35 billion versus $10.42 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.Revenues- Commercial- Total: $1.87 billion versus $1.85 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Revenues- Other: $894 million versus the five-analyst average estimate of $836.81 million. The reported number represents a year-over-year change of +6.6%.Revenues- Advertising sales: $416 million compared to the $382.47 million average estimate based on five analysts. The reported number represents a change of +12.1% year over year.Revenues- Residential- Voice: $331 million versus the four-analyst average estimate of $313.86 million. The reported number represents a year-over-year change of -4.3%.Revenues- Residential- Internet: $5.78 billion versus the four-analyst average estimate of $5.85 billion. The reported number represents a year-over-year change of -3.2%.Revenues- Connectivity: $6.87 billion versus the four-analyst average estimate of $6.9 billion.Revenues- Residential- Mobile service: $1.1 billion versus the four-analyst average estimate of $1.05 billion. The reported number represents a year-over-year change of +18.9%.View all Key Company Metrics for Charter here>>>
Shares of Charter have returned -2.4% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Charter Communications has suffered severe share price declines due to intensifying broadband competition, subscriber losses, and persistent debt overhang. CHTR's Q2 results showed ongoing broadband attrition, falling revenue, but resilient cash generation and aggressive buybacks, with leverage stable at 4.2x. Despite cap-ex normalization and a free cash flow yield above 16%, market sentiment remains negative until broadband losses stabilize and debt concerns ease.
Charter Communications, Inc. (CHTR) Q2 2026 Earnings Call July 24, 2026 8:00 AM EDT
Company Participants
Stefan Anninger - Vice President of Investor Relations
Christopher Winfrey - President, CEO & Director
Jessica Fischer - Chief Financial Officer
Conference Call Participants
Craig Moffett - MoffettNathanson LLC
Vikash Harlalka - New Street Research LLP
Steven Cahall - Wells Fargo Securities, LLC, Research Division
Walter Piecyk - LightShed Partners, LLC
Presentation
Operator
Hello, and welcome to Charter Communications Second Quarter 2026 Investor Conference Call. [Operator Instructions] Also as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.
I will now turn the call over to Stefan Anninger.
Stefan Anninger
Vice President of Investor Relations
Thanks, operator, and welcome, everyone. The presentation that accompanies this call can be found on our website, ir.charter.com. I would like to remind you that there are a number of risk factors and other cautionary statements contained in our SEC filings, and we encourage you to read them carefully. Various remarks that we make on this call concerning expectations, predictions, plans and prospects constitute forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results.
Any forward-looking statements reflect management's current view only, and Charter undertakes no obligation to revise or update such statements. As a reminder, all growth rates noted on this call and in the presentation are calculated on a year-over-year basis, unless otherwise specified.
On today's call, we have Chris Winfrey, our President and CEO; and Jessica Fischer, our CFO. With that, let's turn the call over to Chris.
Christopher Winfrey
President, CEO & Director
Thanks, Stefan. During the second quarter, we added over 400,000 Spectrum Mobile lines, making that 1.7 million lines over the last 12 months for growth of 16%. We now have
Charter Communications lost more internet and video subscribers over the second quarter. (Courtesy Charter Communications)
Charter Communications stock was dropping on Friday after the cable operator said more subscribers exited their contracts last quarter, piling on the misery to close out a miserable week for the industry.
Key Takeaways Charter reported Q2 EPS of $10.66, topping estimates, while revenues fell 1.7% year over year.CHTR grew mobile revenues 18.9% as video and Internet revenues declined amid customer losses.Charter added 406,000 mobile lines, while improved video trends reflected simplified pricing and packaging. Charter Communications (CHTR - Free Report) has reported second quarter 2026 diluted earnings of $10.66 per share, which beat the Zacks Consensus Estimate of $9.96 by 7.03%. The reported figure increased 16.1% year over year from $9.18 in the year-ago quarter.
Revenues of $13.5 billion declined 1.7% year over year, primarily driven by lower residential video revenues. The reported figure exceeded the Zacks Consensus Estimate of $13.518 billion by a marginal 0.06%. Excluding advertising sales revenue and costs allocated to programmer streaming applications and netted within video revenue, total revenue declined 0.8% year over year.
CHTR has shown weak performance, missing the Zacks Consensus Estimate in all the trailing four quarters, with an average negative surprise of 6.95%.
CHTR’s Segmental DetailsResidential revenues totaled $10.4 billion, down 3.5% year over year due to a decline in residential customers of 1.8% and a decrease in monthly residential revenue per residential customer of 1.8%. Excluding costs allocated to programmer streaming applications and netted within video revenues, residential revenues declined 1.8% year over year.
Internet revenues declined 3.2% year over year to $5.8 billion, driven by a decline in Internet customers year over year and pricing and packaging mix within the customer base, partly offset by more favorable bundled revenue allocation.
Mobile service revenues increased 18.9% year over year to $1.1 billion, driven by mobile line growth and rate adjustments.
Video revenues totaled $3.1 billion in the second quarter, a decrease of 9.7% year over year, driven by a higher mix of lower priced video packages, $251 million of costs allocated to programmer streaming applications and netted within video revenue versus $67 million in the year ago period, more unfavorable bundled revenue allocation and a decline in video customers, partly offset by promotional rate step ups and video rate adjustments.
Voice revenues decreased 4.5% year over year to $331 million, driven by a decline in wireline voice customers, partly offset by voice rate adjustments.
Commercial revenues increased 1.5% year over year to $1.9 billion, driven by mid market and large business revenue growth of 2.8% and an increase in small business revenue of 0.7%.
Mid market and large business revenues excluding wholesale increased 3.5% year over year, mostly reflecting primary service unit growth.
Second-quarter advertising sales revenues of $416 million increased 12.3% year over year, primarily driven by higher political revenues. Excluding political revenues in both periods, advertising sales revenues decreased 4.6% year over year, reflecting lower linear advertising revenues, partly offset by higher streaming advertising revenues.
Other revenues totaled $894 million in the second quarter, an increase of 7.1% year over year, primarily driven by higher mobile device sales, partly offset by a $45 million one-time benefit in the year-ago period.
CHTR’s Subscriber StatisticsSecond quarter total customer relationships declined 1.7% year over year to 31.5 million. Total connectivity customers decreased 1.3% year over year to 30.4 million.
Total Internet customers decreased by 172,000 in the second quarter of 2026, compared with a decline of 116,000 in the year-ago period. As of June 30, 2026, Charter served 29.4 million total Internet customers, down 1.7% year over year.
The company added 406,000 total mobile lines in the second quarter compared with 491,000 in the year-ago quarter. As of June 30, 2026, it served 12.5 million mobile lines, up 15.5% year over year.
Total video customers decreased 21,000 in the second quarter of 2026 compared with a decline of 80,000 in the year-ago quarter. As of June 30, 2026, Charter served 12.5 million total video customers, down 0.8% year over year. The year-over-year improvement in video net losses was driven by simplified pricing and packaging and benefits from the inclusion of programmer streaming applications in Spectrum's expanded basic video packages.
Total wireline voice customers declined by 178,000 in the second quarter of 2026 compared with a decline of 220,000 in the year-ago quarter. As of June 30, 2026, Charter served 5.7 million total wireline voice customers.
Charter activated 127,000 subsidized rural passings in the second quarter of 2026. Within the subsidized rural footprint, total customer relationships increased by 47,000.
CHTR’s Operating DetailsTotal operating costs and expenses were flat year over year at $8.1 billion, driven by lower programming costs offset by higher other costs of revenue and higher transition expenses.
Second quarter programming costs decreased 9.7% year over year, reflecting $251 million of costs allocated to programmer streaming applications and netted within video revenues versus $67 million in the year ago period, a higher mix of lower cost packages and fewer video customers, partly offset by contractual programming rate increases and renewals.
Other costs of revenues increased 11.3% year over year, primarily driven by higher mobile device sales, higher mobile service direct costs and higher advertising sales costs, given higher political revenues.
Field and technology operations expenses increased 1.6% year over year, primarily driven by higher vehicle fuel costs and medical expenses.
Customer operations expenses increased 1.1% year over year, driven by medical expenses.
Marketing and residential sales expenses decreased 3.1% year over year, due to lower marketing expenses from cost savings despite higher marketing activity.
Transition expenses of $65 million represent incremental costs incurred to prepare for the integration of the previously announced Cox Communications transaction. There were no comparable transition expenses in the year ago quarter.
Capital expenditures totaled $2.9 billion in the second quarter, down 0.1% year over year, with lower line extension spend offset by higher upgrade and rebuild spend related primarily to network evolution. Charter continues to expect full year 2026 capital expenditures, excluding impacts from the previously announced Cox transaction, to total approximately $11.4 billion.
Balance Sheet & Cash FlowAs of June 30, 2026, the total principal amount of debt was $93.8 billion, and Charter's credit facilities provided approximately $3.7 billion in additional liquidity in excess of Charter's $509 million cash position.
During the second quarter of 2026, Charter repurchased $1.2 billion in aggregate principal amount of Charter Communications Operating, LLC and CCO Holdings, LLC notes under an open market repurchase program for $1 billion in cash.
Free cash flow in the second quarter of 2026 totaled $969 million, a decrease from $1.4 billion in the first quarter of 2026.
In the second quarter of 2026, Charter purchased 4 million shares of Charter Class A common stock for $838 million compared with 4.3 million shares for $963 million in the first quarter of 2026.
Zacks Rank & Stocks to ConsiderCHTR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Cimpress (CMPR - Free Report) , The Marcus (MCS - Free Report) and News Corporation (NWSA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Cimpress have returned 46.2% in the year-to-date period. Cimpress is slated to report fourth-quarter of fiscal 2026 results on July 29.
Shares of The Marcus have returned 53.4% in the year-to-date period. The Marcus is slated to report second-quarter 2026 results on July 30.
Shares of News Corporation have returned 0.8% in the year-to-date period. News Corporation is slated to report fourth-quarter of fiscal 2026 results on Aug. 05.
The market expects Chevron (CVX - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil company is expected to post quarterly earnings of $5.79 per share in its upcoming report, which represents a year-over-year change of +227.1%.
Revenues are expected to be $57.53 billion, up 28.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 21.89% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Chevron?For Chevron, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Chevron will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Chevron would post earnings of $0.92 per share when it actually produced earnings of $1.41, delivering a surprise of +53.26%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Chevron doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Exxon Mobil (NYSE:XOM | XOM Price Prediction) and Chevron (NYSE:CVX) both reported Q1 2026 results on May 1, 2026, right as the war with Iran reshaped global crude flows. With the Strait of Hormuz effectively closed and Brent recently near $90 per barrel, the two American majors are running the same playbook with very different exposure maps.
How the Quarter Landed for Each Business Exxon posted adjusted EPS of $1.16 versus $1.01 expected on revenue of $85.14 billion, a solid beat despite $706 million in direct Middle East losses and a $3.88 billion mark-to-market drag on unsettled derivatives. Upstream volumes hit 4.6 million oil-equivalent barrels per day, and CEO Darren Woods framed the quarter bluntly: “Events in the Middle East tested that strength with the safety of our people remaining our top priority.”
Chevron’s beat was larger but messier. Adjusted EPS came in at $1.41 versus $0.97 expected, though revenue of $47.56 billion missed by 9.76% and free cash flow flipped to negative $1.55 billion. Curtailments hit its Tamar and Leviathan operations in Israel, and Mike Wirth leaned on the Hess integration and record U.S. throughput to carry the story.
Cash Machine vs. Hemisphere Hedger Lens XOM CVX Core Bet LNG, Guyana, Permian scale Hess, Gulf of America, Venezuela Middle East Exposure Physical shipment losses Israel field curtailments 2026 Buyback Pace $20B planned $2.5B quarterly Exxon is engineered to convert $100 oil into raw cash. Golden Pass LNG Train 1 shipped its first cargo in April, Guyana output topped 900,000 gross barrels per day, and cumulative structural cost savings since 2019 reached $15.6 billion. Chevron is trading pure upside for geographic insurance. Talks around a $366 billion Iraq-to-Syria pipeline revival aim to bypass Hormuz entirely, and new plays in Libya, Uruguay, and Venezuela widen its Western Hemisphere footprint.
The Next Test Is How Long Brent Stays Elevated The EIA now expects Brent around $106 per barrel in May and June before easing to $89 by 4Q26, with 10.75 million barrels per day of Middle East production shut in. WTI last traded at $80.77, already off May highs. I will be watching whether Exxon’s LNG cargoes and Permian barrels keep compounding, and whether Chevron’s Hess-era production growth of 15% year over year can offset those Israeli curtailments.
Why I Lean Toward Exxon on This Setup For me, Exxon is the cleaner Iran-war trade. The 47.24% one-year return against Chevron’s 32.29% reflects tighter operating leverage to crude, and the $20 billion buyback is a real floor. Investors focused on lower operational supply risk and unique Venezuela and Israel optionality may find Chevron’s profile more appealing, especially with a $1.78 quarterly dividend backed by 39 straight years of increases. The key variable for both names is whether Hormuz reopens faster than the EIA expects.
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Key Takeaways NEM maintained 2026 production guidance of 5.3 million attributable gold ounces.Newmont returned more than 80% of quarterly free cash flow for a second consecutive quarter.NEM advanced Cadia recovery and Red Chris plans while managing costs and project investments. Newmont Corporation (NEM - Free Report) maintained its 2026 outlook as stronger portfolio execution and elevated gold prices supported substantial cash generation despite rising fuel costs and disruptions at Cadia.
Management’s central message was that operating discipline, a strong balance sheet and a repeatable capital allocation framework can sustain project investment and shareholder returns through changing market conditions.
NEM Maintains Full-Year Production GuidancePresident and chief executive officer Natascha Viljoen said Newmont remains on track to produce approximately 5.3 million attributable gold ounces in 2026. Second-quarter production totaled 1.3 million ounces.
Production modestly exceeded management’s April expectations because Yanacocha and Lihir delivered about 50,000 ounces earlier than planned. That timing shifted the expected annual production split to 49% in the first half and 51% in the second half.
Viljoen expects third-quarter production to remain broadly in line with the second quarter. The fourth quarter should be the year’s strongest as Lihir completes maintenance and Ahafo North reaches its full operating rate.
Newmont Faces Higher Near-Term Unit CostsExecutive vice president and chief financial officer Brian Tabolt said third-quarter unit costs should rise moderately as sustaining capital increases by approximately $150 million sequentially.
Oil and diesel remain important pressure points. Tabolt told a Jefferies analyst that every $10-per-barrel change in oil carries an estimated $60 million full-year impact, while higher freight could affect explosives, cyanide and grinding media.
Management nevertheless retained its 2026 guidance of $1,055 per ounce for gold by-product costs applicable to sales and $1,680 per ounce for all-in sustaining costs. Viljoen cited reduced equipment use, lower contractor reliance and site-level productivity programs as offsets.
NEM Targets a Fourth-Quarter Production PickupViljoen said second-half growth should come primarily from Boddington, Tanami, Lihir, Cerro Negro and Brucejack. Ahafo North is expected to increase sequentially through the year.
During the analyst discussion, a Goldman Sachs representative asked how Newmont intends to rebuild annual production toward 6 million ounces.
Viljoen said the path is not heavily dependent on Cadia’s new caves. She pointed to Ahafo North, higher-grade areas at Boddington and Lihir, and expansion opportunities at Cerro Negro and Tanami as additional contributors.
Newmont Advances Cadia Recovery and Red ChrisThe two operating caves at Cadia returned to production in mid-June after the April seismic event. Development work has resumed, although regulatory approval is still required to restart cave establishment at PC1-2 and PC2-3.
Viljoen told a CIBC analyst that mature caves had returned to background seismicity. Newmont is updating models and safety controls before restarting development activities that carry greater seismic exposure.
At Red Chris, major regulatory approvals are now in place. Management expects capital requirements to exceed earlier Newcrest estimates but said design improvements have reduced project risk and strengthened economics ahead of a potential year-end board decision.
NEM Keeps Returning Excess CashTabolt said Newmont generated $2.2 billion of free cash flow and returned more than 80% of quarterly free cash flow for a second consecutive quarter.
The company repurchased $1.7 billion of shares since its previous earnings call, including more than $600 million in July. Approximately $4.3 billion remains under the current authorization.
Repurchases have reduced the share count by more than 100 million shares, or approximately 9%, over two years. Tabolt said the lower count could support a quarterly dividend of 27 cents at the next annual review, subject to board approval.
Newmont Balances Investment and Financial FlexibilityManagement retained sustaining and development capital guidance of $1.95 billion and $1.4 billion, respectively. Spending is weighted toward the second half as work accelerates at Cadia, Lihir, Tanami, Red Chris and Cerro Negro.
Newmont ended the quarter with $3.4 billion of net cash, above the upper end of its targeted range. Excess cash is directed toward repurchases after sustaining investment, dividends, development projects and balance-sheet priorities are funded.
Adjusted earnings of $2.1 per share exceeded the Zacks Consensus Estimate of $2.05. Revenues of $6.12 billion fell short of the $6.35 billion consensus.
NEM’s Priorities After the CallManagement’s tone was confident on full-year delivery but guarded about energy inflation, third-quarter costs and the timing of regulatory approvals.
The operating focus remains on consistent production, Cadia’s safe recovery, productivity improvements and disciplined project development. Capital allocation continues to emphasize financial flexibility and ratable shareholder returns.
Zacks Signals Present a Conflicted ProfileNEM currently carries a Zacks Rank #4 (Sell), indicating an unfavorable earnings-estimate revision trend. That signal takes precedence over an otherwise strong Growth and VGM Score of A each and a Value Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Momentum Score of F adds another weak element to the near-term setup. The Zacks Rank can change as analysts revise estimates following the newly reported results, so the current combination should not be viewed as permanent.
I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because the crowd screaming “SaaSpocalypse” is looking at a stock chart while I am looking at a receipts book. The stock is down 34.05% year to date while the S&P 500 is up 8.82%, and every time the gap widens, I add more shares. My cost basis keeps working in my favor, and the business underneath keeps compounding.
The Receipts Behind My Conviction Start with what actually happened last quarter. Salesforce delivered EPS of $3.88 against a consensus of $3.1271, a 24.08% beat and the fifth consecutive quarter of exceeding estimates. Revenue landed at $11.13 billion, up 13.27% year over year. Net income jumped 36.73%. These are the numbers of a compounder that the market has decided to price like a melting ice cube.
Then there is the AI receipt in plain view. Agentforce and Data 360 combined ARR reached nearly $3.4 billion, up over 200% year over year. Agentforce alone crossed $1.2 billion in ARR, growing 205%. Customers delivered 3.8 billion Agentic Work Units, and more than 50% of new Agentforce bookings came from existing customers. That is real recurring revenue from enterprises paying to have agents do work inside their systems of record. Industry surveys show over 60% of CIOs prefer upgrading incumbent SaaS vendors rather than replacing them with raw models, citing SOC2 compliance and audit trails that startups cannot match. That is the moat.
The capital return finishes the case. Salesforce executed a $25 billion accelerated share repurchase, taking diluted share count from 970 million to 871 million in a year. Total returned in the quarter: $27.5 billion. With a P/E of 19, a free cash flow yield of 10.12%, and a 1.11% dividend that was raised 5.8% this year, I am buying growth at a value multiple.
Why Not the Obvious Alternatives Readers ask about ServiceNow (NYSE:NOW) and HubSpot (NYSE:HUBS). ServiceNow is down 51% from its 52-week high, and CLSA just initiated with an underperform rating and a $72 price target implying 31% downside. HubSpot got cut by Wells Fargo from Overweight to Equal Weight with the target sliced from $300 to $225 on AI transition uncertainty. Salesforce already carries the average Wall Street target of $254.42 against a stock trading at $173.79. Same fear, better fundamentals, cheaper entry.
The Risk I Own Noncurrent debt jumped from $10.4 billion to $39.3 billion to fund the buyback, and Informatica integration is a real execution project. Interest coverage of 27.5x and net debt to EBITDA of 0.78 tell me the balance sheet absorbs it. I am fine with management leaning into a cheap stock.
Marc Benioff called this “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow” and set a $63 billion FY30 revenue target. I will keep buying while the market sells me a compounder at a value multiple.
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Key Takeaways SAP highlighted its Autonomous Enterprise strategy, AI push and strong demand for Business AI solutions.SAP reported cloud backlog of EUR22.9B, with cloud revenues up 22% and Cloud ERP Suite revenues up 25%.SAP adjusted 2026 operating profit outlook after Dremio and Prior Labs acquisition impacts. SAP SE (SAP - Free Report) used its second-quarter earnings call to emphasize accelerating adoption of its Autonomous Enterprise strategy, with management focusing on artificial intelligence, cloud momentum and disciplined investment. Executives highlighted strong demand for cloud ERP migrations while acknowledging near-term margin pressure from acquisitions and AI-related spending.
The discussion centered on how SAP plans to combine enterprise data, applications and AI agents while maintaining operating leverage. Management also addressed investor concerns around profitability, guidance and the pace of AI monetization.
SAP Advances Autonomous Enterprise StrategyCEO Christian Klein said SAP’s second quarter showed continued momentum in its AI transformation, driven by the launch of the Autonomous Enterprise vision and increased customer interest in Business AI solutions. He highlighted that AI and SAP Business Data Cloud were embedded in more than 90% of the company’s 50 largest deals.
Klein explained that SAP’s AI platform is built around three areas: development tools for creating agents, data and context capabilities to support accurate decisions, and governance features to manage compliance and security. The company is integrating acquisitions such as Dremio, Reltio and Prior Labs into this strategy.
SAP also said customer interest in its new platform offerings has been strong, with beta programs for its platform, suite and Joule Work product receiving significant participation. Management expects to release additional assistants and expand autonomous agents across its portfolio.
SAP SE Maintains Cloud Growth FocusSAP SE reported a current cloud backlog of €22.9 billion, up 27% year over year and 26% at constant currencies. Cloud revenues increased 22% year over year to €6.3 billion, while Cloud ERP Suite revenues rose 25%.
Management said cloud growth benefited from continued customer migrations from on-premise systems to cloud ERP solutions. CFO Dominik Asam noted that SaaS and PaaS growth remained strong, with Cloud ERP Suite accounting for 88% of total cloud revenues.
The company also highlighted regional strength, with cloud revenues performing particularly well in Asia Pacific and Japan and Europe, the Middle East and Africa. Management cited strong execution despite ongoing macroeconomic uncertainty.
SAP Addresses Profitability and Investment BalanceThe company’s second-quarter operating profit rose 8% under IFRS and 7% on a non-IFRS basis, while the non-IFRS operating margin was 27.8%. Management attributed slower profit growth to increased research and development investments, higher marketing spending tied to the Autonomous Enterprise launch, and acquisition impacts.
Asam said SAP remains committed to its operating leverage framework while prioritizing AI investments and protecting revenue growth. He emphasized that the quarter included several temporary factors and should be viewed within the broader first-half performance.
The company reported second-quarter earnings per share of $1.85, which missed the Zacks Consensus Estimate of $2. However, revenues of $11.48 billion exceeded the Zacks Consensus Estimate of $11.41 billion by 0.7%.
SAP Updates 2026 OutlookSAP maintained its cloud revenue outlook for 2026 at €25.8-€26.2 billion at constant currencies, representing growth of 23% to 25%. It also kept its cloud and software revenue forecast of €36.3 billion to €36.8 billion.
The company adjusted its non-IFRS operating profit outlook to €11.8 billion to €12.2 billion at constant currencies from the previous €11.9 billion to €12.3 billion range. Management said the revision reflects the dilutive impact of the Dremio and Prior Labs acquisitions.
SAP continued to expect approximately €10 billion in free cash flow for 2026 and said current cloud backlog growth is expected to slightly decelerate through the year.
SAP Faces Analyst Questions on AI ReturnsA Morgan Stanley analyst asked about the lower operating profit outlook and whether SAP’s investment priorities had shifted toward growth rather than margin expansion. Asam responded that SAP continues to operate within its expense discipline framework and that AI transformation investments are intended to support long-term productivity.
A Goldman Sachs analyst questioned the visibility into cloud revenue growth and the timing of AI monetization. Klein said the post-Sapphire pipeline improved, with customers increasingly recognizing the need for ERP modernization alongside AI adoption.
Management also emphasized that customers are seeking enterprise AI solutions with governance, cost control and data quality, areas SAP believes differentiate its platform strategy.
SAP SE Prioritizes AI Transformation ExecutionSAP’s leadership reiterated that the company’s focus for the second half of 2026 is sustaining cloud momentum, delivering operating leverage and expanding AI capabilities. Management pointed to internal AI adoption efforts, workforce reskilling, and developer productivity improvements as important parts of the transformation.
The company continues to balance investment in AI products with profitability goals. Executives said recent acquisitions and AI initiatives are designed to strengthen SAP’s position in enterprise automation while preserving financial discipline.
Zacks Rank and Style Scores SAP has a Zacks Rank #4 (Sell) at present. The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with stronger or weaker potential performance over the next one to three months. The rank can change as analysts revise earnings expectations following new company developments.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SAP’s Style Scores include a Value Score of C, Growth Score of B, Momentum Score of D and VGM Score of C. The Style Scores evaluate characteristics such as value, growth and momentum, with higher grades indicating more favorable attributes. The combination of Zacks Rank and Style Scores provides additional context for evaluating a stock’s potential performance characteristics.
Key Takeaways SAP Q2 revenue jumped 9% as cloud revenue rose 22% and cloud backlog grew 27% year over year.SAP cut its 2026 operating profit outlook after acquisitions but reaffirmed cloud revenue targets.SAP expanded AI adoption and enterprise cloud wins across industries, supporting future growth visibility. SAP SE (SAP - Free Report) reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.
Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.
AI strategy is becoming a major competitive advantage for SAP. Management emphasized its Autonomous Enterprise strategy, which combines Business AI with enterprise applications. SAP is embedding AI directly into finance, procurement, supply chain, HR and customer operations. The company's strategy revolves around two major pillars –Autonomous Suite and Business AI Platform. SAP believes customers increasingly value AI solutions that operate using trusted enterprise data while maintaining governance and compliance.
This positioning gives SAP a competitive edge because its AI capabilities are built on decades of customer business processes and transactional data rather than disconnected AI models. As AI adoption expands across enterprises, SAP is well-positioned to monetize AI through higher cloud subscriptions rather than relying solely on standalone AI products.
Cloud Business Continues to Be SAP's Growth EngineCurrent cloud backlog reached €22.9 billion in the quarter, representing 27% year-over-year growth (26% at cc). This metric is important because it reflects contracted future cloud revenue, giving investors visibility into future growth.
On a non-IFRS basis, the Cloud and software segment (89.6% of total revenues) registered revenues of €8.9 billion, rising 11% year over year (up 13% at cc).
Cloud revenue increased 22% year over year (24% at cc) to €6.3 billion, on a non-IFRS basis, demonstrating that enterprise customers continue to migrate mission-critical workloads to SAP's cloud ecosystem. SAP's Cloud ERP Suite, where revenue increased 25% (27% at cc) to €5.5 billion, is equally encouraging. Software licenses and support revenues totaled €2.6 billion, representing a 9% decrease (down 8% at cc) year over year.
Services business (10.4% of total revenues) posted revenues of €1 billion, down 3% year over year (down 2% at cc).
Expanding Clientele Bodes WellIn the second quarter, organizations worldwide continued to adopt the “RISE with SAP” program to support their comprehensive business transformations. Notable adopters included ACCIONA, AIRBUS, City of Osnabrück, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma and Vonovia.
“GROW with SAP” was implemented by Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, and Techem.
Major global brands across various industries, including AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich and Vale, chose SAP's AI and data solutions.
SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP and TEAG went live on SAP solutions during the quarter.
SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore.
Margin DetailsNon-IFRS gross profit of €7.3 billion increased 9% from the year-ago quarter (up 11% at cc).
Non-IFRS cloud gross profit increased 22% year over year to €4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%.
SAP's non-IFRS operating profit rose 7% (up 9% at cc) to €2.7 billion, while margin decreased to 27.8%.
Balance Sheet & Cash FlowAs of June 30, 2026, SAP had cash and cash equivalents of €11.6 billion compared with €10.1 billion as of March 31, 2026.
In the second quarter, the company generated operating cash of €3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to €3 billion during the quarter.
SAP also continues returning capital to shareholders. Its newly authorized €10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately €2.6 billion.
SAP’s 2026 Guidance Reaffirmed Despite Lower Profit OutlookThe company lowered its non-IFRS operating profit outlook from €11.9–€12.3 billion to €11.8–€12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding €100 million during 2026.
Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between €25.8 billion and €26.2 billion, cloud and software revenue between €36.3 billion and €36.8 billion and approximately €10 billion in free cash flow.
Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth.
Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations.
SAP’s Zacks RankSAP currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent PerformancesAmerica Movil, S.A.B. de C.V. (AMX - Free Report) reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
Iridium Communications (IRDM - Free Report) reported EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million.
Linde (LIN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis gas supplier is expected to post quarterly earnings of $4.49 per share in its upcoming report, which represents a year-over-year change of +9.8%.
Revenues are expected to be $8.96 billion, up 5.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.55% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Linde?For Linde, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.09%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Linde will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Linde would post earnings of $4.27 per share when it actually produced earnings of $4.33, delivering a surprise of +1.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Linde doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Chemical - Specialty industry, Quaker Chemical (KWR - Free Report) , is soon expected to post earnings of $1.68 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -1.8%. This quarter's revenue is expected to be $511.83 million, up 5.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Quaker Chemical has been revised 1.5% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.67%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Quaker Chemical will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street analysts expect Agnico Eagle Mines (AEM - Free Report) to post quarterly earnings of $2.89 per share in its upcoming report, which indicates a year-over-year increase of 49%. Revenues are expected to be $3.86 billion, up 37.2% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 16.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Agnico metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Revenue from mine operations- Quebec- LaRonde' stands at $427.61 million. The estimate indicates a change of +79.6% from the prior-year quarter.
Analysts forecast 'Revenue from mine operations- Quebec- Canadian Malartic' to reach $667.02 million. The estimate suggests a change of +34.2% year over year.
Analysts expect 'Revenue from mine operations- Quebec- Goldex' to come in at $143.17 million. The estimate indicates a year-over-year change of +24.2%.
It is projected by analysts that the 'Revenue from mine operations- Nunavut- Meliadine' will reach $436.35 million. The estimate suggests a change of +23.1% year over year.
The consensus among analysts is that 'Payable production - Gold (ounces) - Total Gold' will reach $838926.4 ounces. Compared to the current estimate, the company reported $866029.0 ounces in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Payable production - Gold (ounces) - Quebec - LaRonde' should arrive at $87086.3 ounces. The estimate is in contrast to the year-ago figure of $69778.0 ounces.
According to the collective judgment of analysts, 'Payable production - Gold (ounces) - Quebec - Canadian Malartic' should come in at $148272.2 ounces. Compared to the current estimate, the company reported $172531.0 ounces in the same quarter of the previous year.
Analysts' assessment points toward 'Payable production - Gold (ounces) - Quebec - Goldex' reaching $30351.6 ounces. Compared to the present estimate, the company reported $33118.0 ounces in the same quarter last year.
The average prediction of analysts places 'Payable production - Gold (ounces) - Nunavut - Meliadine' at $95419.5 ounces. The estimate is in contrast to the year-ago figure of $90263.0 ounces.
Analysts predict that the 'Payable production - Gold (ounces) - Nunavut - Meadowbank' will reach $104982.5 ounces. The estimate compares to the year-ago value of $101935.0 ounces.
The collective assessment of analysts points to an estimated 'Payable production - Gold (ounces) - Finland - Kittila' of $52694.2 ounces. The estimate compares to the year-ago value of $50357.0 ounces.
The combined assessment of analysts suggests that 'Payable production - Gold (ounces) - Ontario - Detour Lake' will likely reach $172249.1 ounces. The estimate compares to the year-ago value of $168272.0 ounces.
View all Key Company Metrics for Agnico here>>>
Over the past month, Agnico shares have recorded returns of -7.5% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #5 (Strong Sell), AEM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
