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Brown & Brown, Inc.

DAYTONA BEACH, Fla., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE: BRO) today announced that the board of directors has declared a regular quarterly cash dividend of $0.18 per share. The dividend is payable on November 11, 2026, to shareholders of record on November 4, 2026. The dividend represents a 9% increase from the previous regular quarterly cash dividend of $0.165 per share and is Brown & Brown’s 33rd consecutive annual dividend increase.

About Brown & Brown, Inc.

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm delivering comprehensive and customized insurance solutions and specialization since 1939. With a global presence spanning 700+ locations and a team of approximately 23,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at BBrown.com.

For more information:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770

The upcoming report from Principal Financial (PFG - Free Report) is expected to reveal quarterly earnings of $2.46 per share, indicating an increase of 17.1% compared to the year-ago period. Analysts forecast revenues of $4.31 billion, representing an increase of 10.6% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 2.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation 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 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.

In light of this perspective, let's dive into the average estimates of certain Principal Financial metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Total revenues- Fees and other revenues' will reach $1.15 billion. The estimate suggests a change of +2.1% year over year.

According to the collective judgment of analysts, 'Total revenues- Net investment income' should come in at $1.29 billion. The estimate indicates a change of +7.8% from the prior-year quarter.

Analysts forecast 'Total revenues- Premiums and other considerations' to reach $1.86 billion. The estimate points to a change of +21.6% from the year-ago quarter.

The combined assessment of analysts suggests that 'Total operating revenues- Principal Asset Management Segment- Fees and other revenues' will likely reach $556.53 million. The estimate suggests a change of +1.7% year over year.

Based on the collective assessment of analysts, 'Total operating revenues- Principal Asset Management Segment- Net investment income' should arrive at $156.81 million. The estimate suggests a change of -12.6% year over year.

Analysts' assessment points toward 'Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Fees and other revenues' reaching $8.04 million. The estimate suggests a change of -4.3% year over year.

The average prediction of analysts places 'Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Premiums and other considerations' at $876.44 million. The estimate suggests a change of +4.7% year over year.

Analysts expect 'Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Net Investment Income' to come in at $57.14 million. The estimate points to a change of +11.4% from the year-ago quarter.

Analysts predict that the 'Total operating revenues- Benefits and Protection Segment-Specialty Benefits' will reach $941.62 million. The estimate suggests a change of +5% year over year.

The consensus among analysts is that 'Total operating revenues- Benefits and Protection Segment-Life Insurance- Fees and other revenues' will reach $115.30 million. The estimate suggests a change of +2.2% year over year.

The collective assessment of analysts points to an estimated 'Assets under management (AUM) - International Pension' of $164.33 billion. The estimate compares to the year-ago value of $150.70 billion.

The consensus estimate for 'Assets under management (AUM) - Investment Management' stands at $593.01 billion. The estimate compares to the year-ago value of $601.60 billion.

View all Key Company Metrics for Principal Financial here>>>

Principal Financial shares have witnessed a change of -5% in the past month, in contrast to the Zacks S&P 500 composite's +1% move. With a Zacks Rank #3 (Hold), PFG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

WD-40 (WDFC - Free Report) came out with quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -4.51%. A quarter ago, it was expected that this maintenance and cleaning product company would post earnings of $1.58 per share when it actually produced earnings of $2.33, delivering a surprise of +47.47%.

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

WD-40, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $176.78 million for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 3.99%. This compares to year-ago revenues of $163.47 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

WD-40 shares have added about 2.3% since the beginning of the year versus the S&P 500's gain of 12.7%.

What's Next for WD-40?While WD-40 has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

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

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

Ahead of this earnings release, the estimate revisions trend for WD-40 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.24 on $166.6 million in revenues for the coming quarter and $6.47 on $718.1 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, BBB Foods (TBBB - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 2.

This discount retailer is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +77.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

BBB Foods' revenues are expected to be $1.61 billion, up 48.3% from the year-ago quarter.

The upcoming report from Selective Insurance (SIGI - Free Report) is expected to reveal quarterly earnings of $1.91 per share, indicating an increase of 9.1% compared to the year-ago period. Analysts forecast revenues of $1.35 billion, representing an increase of 0.1% year over year.

The consensus EPS estimate for the quarter has been revised 0.9% 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.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain Selective Insurance metrics that are commonly tracked and forecasted by Wall Street analysts.

According to the collective judgment of analysts, 'Revenues- Net premiums earned' should come in at $1.19 billion. The estimate indicates a year-over-year change of -1.3%.

It is projected by analysts that the 'Revenues- Other income' will reach $8.94 million. The estimate suggests a change of +2.7% year over year.

Based on the collective assessment of analysts, 'Revenues- Net investment income earned' should arrive at $155.23 million. The estimate suggests a change of +11.9% year over year.

Analysts' assessment points toward 'Revenues- Excess and Surplus Lines- Net Premiums Earned' reaching $160.75 million. The estimate indicates a year-over-year change of +3.1%.

Analysts predict that the 'Revenues- Standard Commercial Lines- Net Premiums Earned' will reach $935.64 million. The estimate points to a change of -1.2% from the year-ago quarter.

The consensus estimate for 'Revenues- Standard Personal Lines- Net Premiums Earned' stands at $96.65 million. The estimate points to a change of -4.8% from the year-ago quarter.

The combined assessment of analysts suggests that 'Underwriting expense ratio' will likely reach 31.2%. Compared to the current estimate, the company reported 30.6% in the same quarter of the previous year.

The average prediction of analysts places 'Combined ratio' at 100.0%. Compared to the present estimate, the company reported 98.6% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Loss and loss expense ratio' of 73.8%. Compared to the present estimate, the company reported 67.9% in the same quarter last year.

The consensus among analysts is that 'Standard Personal Lines - Combined Ratio' will reach 108.0%. Compared to the present estimate, the company reported 110.1% in the same quarter last year.

Analysts expect 'Standard Commercial Lines - Combined Ratio' to come in at 106.1%. The estimate is in contrast to the year-ago figure of 101.1%.

Analysts forecast 'Excess and Surplus Lines - Combined Ratio' to reach 87.3%. The estimate is in contrast to the year-ago figure of 76.2%.

View all Key Company Metrics for Selective Insurance here>>>

Over the past month, shares of Selective Insurance have returned +2% versus the Zacks S&P 500 composite's +1% change. Currently, SIGI 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 >>>> .

, /PRNewswire/ -- Fulton Financial Corporation (NASDAQ: FULT) ("Fulton" or the "Corporation") reported net income available to common shareholders of $114.1 million, or $0.59 per diluted share, for the third quarter of 2026, an increase of $14.2 million, or $0.07 per diluted share, in comparison to the second quarter of 2026. Operating net income available to common shareholders for the three months ended September 30, 2026 was $119.8 million(1), or $0.62 per diluted share(1), an increase of $3.9 million, or $0.02 per diluted share, in comparison to the second quarter of 2026. 

2026 Q3 Net income available to common shareholders for the nine months ended September 30, 2026 was $306.1 million, or $1.62 per diluted share, an increase of $21.2 million, or $0.07 per diluted share in comparison to the nine months ended September 30, 2025. Operating net income available to common shareholders for the nine months ended September 30, 2026, was $335.3 million(1), or $1.77 per diluted share(1), an increase of $37.9 million, or $0.15 per diluted share, in comparison to the nine months ended September 30, 2025.

"During the quarter, we achieved record financial results while successfully completing the Blue Foundry Bank integration and delivering solid growth in the customer base and customer funding," said Curtis J. Myers, Fulton Chairman, CEO and President. "Our ongoing strong performance reflects robust demand for our community banking model and the steadfast dedication of our team members to deliver a personalized experience. The sustained commitment to executing our strategic priorities is generating long-term value for our shareholders."

Financial Highlights

Third quarter of 2026 operating results of $0.62 per diluted share(1) were impacted by the following items:

Net interest margin remained solid at 3.58%, representing a two basis point decrease from the prior quarter. Non-interest income decreased $2.1 million to $77.2 million compared to $79.3 million in the prior quarter. The decrease was primarily attributable to $6.9 million of income recognized from an equity method investment that was sold in the prior quarter. Non-interest expense decreased $12.4 million to $218.5 million compared to $231.0 million in the prior quarter. Operating non-interest expense increased $0.6 million to $211.2 million(1) compared to $210.6 million in the prior quarter. Provision for credit losses was $4.1 million resulting in an allowance for credit losses attributable to net loans of $375.6 million, or 1.45% of total net loans as of September 30, 2026.  Common equity Tier 1 capital ratio(2) was 12.2% as of September 30, 2026.  During the third quarter of 2026, 2,325,000 shares of the Corporation's common stock were repurchased under the 2026 Repurchase Program(3) at a cost of $56.1 million or an average of $24.14 per share. As of September 30, 2026, the Corporation repurchased 4,062,650 shares of the Corporation's common stock at a cost of $91.8 million or an average of $22.58 per share, under the 2026 Repurchase Program . The following items highlight notable changes in the components of net income in the third quarter of 2026 compared to the second quarter of 2026:

Net interest income increased $5.8 million to $290.0 million driven by a $6.1 million increase in interest income on net loans, a $4.3 million increase in interest income on investment securities, a $2.3 million increase in interest income on other interest-earning assets, and a $2.1 million decrease in interest expense on borrowings and other interest-bearing liabilities, partially offset by a $9.0 million increase in interest expense on deposits. Purchase loan mark accretion from loans acquired in the Republic Transaction(4) was $8.3 million in the third quarter of 2026 compared to $9.9 million in the prior quarter. Purchase loan mark accretion from loans acquired in the Blue Foundry Bancorp Transaction(5) was $4.6 million in the third quarter of 2026 compared to $5.2 million in the prior quarter. The decrease in interest expense on borrowings and other interest-bearing liabilities was partially due to $2.4 million of interest expense recognized in the second quarter of 2026 from the Corporation's $195.0 million aggregate principal amount of outstanding 3.250% Fixed-to-Floating Rate Subordinated Notes due 2030 that were redeemed on June 15, 2026. Non-interest income before investment securities gains (losses) was $77.2 million compared to $79.3 million in the prior quarter. The $2.1 million decrease was primarily attributable to a $6.3 million decline in income from equity method investments, reflected in other income, mainly due to $6.9 million of income recognized from an equity method investment that was sold in the prior quarter. Compared to the prior quarter, wealth management revenues increased by $2.1 million.  Non-interest expense was $218.5 million compared to $231.0 million in the prior quarter. The $12.4 million decrease was primarily attributable to a $12.1 million decrease in acquisition-related expenses. Salaries and employee benefits expense increased $5.6 million mainly due to a $3.9 million increase in incentive compensation expense, a $0.8 million increase in base salary expense from one additional calendar day in the third quarter and a $0.8 million increase in recruiting expenses. Other non-interest expense for the second quarter included a $2.1 million charge incurred related to combining two employee pension plans and $0.8 million of debt extinguishment costs.  Balance Sheet Summary

Total net loans increased $43.6 million to $26.0 billion compared to $25.9 billion as of June 30, 2026. The increase was due to a $107.0 million increase in consumer loans(6), partially offset by a $63.3 million decrease in commercial loans(6).  Deposits totaled $28.8 billion, a $571.0 million increase compared to $28.3 billion as of June 30, 2026. The increase was attributable to increases of $601.0 million in savings deposits, $324.1 million in interest-bearing demand deposits and $120.3 million in time deposits, partially offset by decreases of $428.5 million in brokered deposits and $45.8 million in noninterest-bearing demand deposits. The increase in deposits was driven by solid commercial deposit growth and seasonal trends in the municipal deposit portfolio. Provision for Credit Losses and Asset Quality

The provision for credit losses totaled $4.1 million in the third quarter of 2026 compared to $4.9 million in the second quarter of 2026. The allowance for credit losses attributable to net loans was $375.6 million, or 1.45% of total net loans as of September 30, 2026, compared to $382.6 million, or 1.48% of total net loans as of June 30, 2026.  Non-performing assets were $179.4 million, or 0.52% of total assets, as of September 30, 2026, in comparison to $187.1 million, or 0.54% of total assets, as of June 30, 2026.  Annualized net charge-offs for the third quarter of 2026 were 0.14% of total average loans in comparison to 0.34% in the prior quarter.  Additional information on Fulton is available at www.fultonbank.com.

(1)

Financial measure derived by methods other than generally accepted accounting principles ("GAAP"). Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of the press release.

(2)

Regulatory capital ratios as of September 30, 2026 are preliminary estimates and prior periods are actual. 

(3)

The 2026 Repurchase Program represents the authorization, commencing on January 1, 2026 and expiring on January 31, 2027, to repurchase up to $150 million, excluding fees, commissions, excise tax and other ancillary expenses, of the Corporation's common stock. Under this authorization, up to $25 million of the $150 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes. As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases may be made from time to time under the 2026 Repurchase Program in open market or privately negotiated transactions, including without limitation, through accelerated share repurchase transactions. The 2026 Repurchase Program may be discontinued at any time.

(4)

On April 26, 2024, Fulton Bank, National Association ("Fulton Bank"), acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank, doing business as Republic Bank ("Republic Bank"), from the Federal Deposit Insurance Corporation (the "FDIC"), as receiver for Republic Bank (the "Republic Transaction"), pursuant to the terms of the Purchase and Assumption Agreement - Whole Bank, All Deposits, effective as of April 26, 2024 among the FDIC, as receiver of Republic Bank, the FDIC and Fulton Bank.

(5)

On April 1, 2026, the Corporation completed the acquisition of Blue Foundry Bancorp (the "Blue Foundry Bancorp Transaction") and Blue Foundry Bancorp's wholly owned subsidiary, Blue Foundry Bank, became a wholly owned subsidiary of the Corporation. On July 11, 2026, Blue Foundry Bank merged with and into the Corporation's wholly owned subsidiary Fulton Bank, with Fulton Bank continuing as the surviving bank.

(6)

Consumer loans include increases of $81.1 million in real estate - residential mortgage loans, $19.9 million in real estate - home equity loans, $4.8 million in consumer loans and $1.2 million in residential construction loans, reflected in real estate - construction. Commercial loans include decreases of $66.4 million in commercial construction loans, reflected in real estate - construction and $12.4 million in commercial and industrial loans, partially offset by an increase of $14.7 million in leases and other loans and $0.8 million in real estate - commercial mortgage. 

Note: Some numbers contained in this document may not sum due to rounding.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the Corporation's financial condition, results of operations and business. Forward-looking statements are any statement that does not relate to historical or current facts and can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends," "projects," the negative of these terms and other comparable terminology. These forward-looking statements may include projections of, or guidance on, the Corporation's future financial performance, expected levels of future expenses, including future credit losses, anticipated growth strategies, descriptions of new business initiatives and anticipated trends in the Corporation's business or financial results.

Forward-looking statements are neither historical facts, nor assurance of future performance. Instead, the statements are based on current beliefs, expectations and assumptions regarding the future of the Corporation's business, plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Corporation's control, and actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date when made. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Numerous factors could cause the Corporation's actual results to differ materially from those described in the forward-looking statements, including, but not limited to, the following: the impact of adverse conditions in the economy and financial markets; trade policies and the imposition of tariffs and retaliatory tariffs; the impacts of events affecting the financial services industry; the effects of actions by the federal government, including those of the Board of Governors of the Federal Reserve System and other government agencies, that impact the money supply and market interest rates; the effects of market interest rates and the relative balances of interest rate-sensitive assets to interest rate-sensitive liabilities on net interest margin and net interest income; the composition of the Corporation's loan portfolio and potential exposure to increased credit risk; the effects of changes in interest rates; investment securities gains and losses, including declines in the fair value of securities; disruptions in liquidity markets; capital and liquidity strategies; the Corporation's ability to generate capital internally or raise capital on favorable terms; the effects of competition; possible goodwill impairment charges; the impact of operational risks; the loss of, or failure to safeguard, confidential or proprietary information; the Corporation's failure to identify and promptly address cybersecurity risks; the impact of failures of the Corporation's third-party vendors to perform in accordance with contractual arrangements; the effects of concerns about other financial institutions on the Corporation; potential losses in connection with repurchase and indemnification payments related to sold loans; the effects of climate change on the Corporation's business and results of operations; the effects of increases in non-performing assets; the determination of the allowance for credit losses; the effects of the extensive level of regulation and supervision to which the Corporation and Fulton Bank are subject; changes in law, regulation and government policy; the continuing impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; potential negative consequences resulting from regulatory violations, investigations and examinations; the effects of adverse outcomes in litigation and governmental or administrative proceedings; the effects of changes in U.S. federal, state or local tax laws; the effects of the significant amounts of time and expense associated with regulatory compliance and risk management; the Corporation's ability to realize anticipated reductions in non-interest expense and increases in revenue from strategic initiatives implemented from time to time; risks related to the acquisition of Blue Foundry Bancorp; completed and potential future acquisitions may affect costs and the Corporation may not be able to successfully integrate the acquired business or realize the anticipated benefits from such acquisitions; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, military conflicts, wars and other international hostilities; public health crises and pandemics; the Corporation's ability to achieve its growth plans; the Corporation's ability to attract and retain talented personnel; the effects of competition from financial service companies and other companies offering bank services; the Corporation's ability to keep pace with technological changes; the Corporation's reliance on its subsidiaries for substantially all of its revenues; and the effects of negative publicity on the Corporation's reputation. For additional information about factors that could cause actual results to differ materially from those described in forward-looking statements, refer to the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and other current and periodic reports, which have been, or will be, filed with the Securities and Exchange Commission (the "SEC") and are, or will be, available in the Investor Relations section of the Corporation's website (www.fultonbank.com) and on the SEC's website (www.sec.gov).

Non-GAAP Financial Measures

The Corporation uses certain financial measures in this press release that have been derived from methods other than GAAP. These non-GAAP financial measures are reconciled to the most comparable GAAP measures in tables at the end of this press release. 

FULTON FINANCIAL CORPORATION

SUMMARY CONSOLIDATED FINANCIAL INFORMATION
(UNAUDITED)

(dollars in thousands, except per share and shares data)

Three months ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Ending Balances

Investment securities(1)

$   5,321,773

$    5,122,759

$   4,861,967

$   4,833,744

$   5,045,270

Net loans

25,977,924

25,934,293

24,266,345

24,144,884

24,041,489

Total assets

34,775,370

34,556,720

32,237,438

32,118,400

31,995,086

Deposits

28,821,365

28,250,342

26,768,335

26,589,407

26,332,490

Shareholders' equity

3,686,752

3,815,813

3,505,283

3,490,447

3,413,598

Average Balances

Investment securities(1)

5,250,831

4,983,015

4,785,276

4,921,669

5,025,072

Net loans

25,973,093

25,883,823

24,225,655

24,053,089

24,020,322

Total assets

34,836,627

34,193,608

31,999,228

32,013,163

31,924,038

Deposits

28,770,984

28,014,666

26,451,094

26,537,659

26,298,680

Shareholders' equity

3,807,728

3,788,421

3,543,911

3,464,539

3,361,368

Income Statement

Net interest income

290,035

284,252

262,023

266,042

264,198

Provision for credit losses

4,059

4,897

14,442

2,948

10,245

Non-interest income

77,225

79,306

69,841

69,980

70,407

Non-interest expense

218,517

230,954

200,294

212,986

196,574

Income before taxes

144,684

127,707

117,128

120,088

127,786

Net income available to common shareholders

114,095

99,852

92,199

96,408

97,892

Per Share

Net income available to common shareholders (basic)

$0.60

$0.52

$0.51

$0.53

$0.54

Net income available to common shareholders (diluted)

$0.59

$0.52

$0.51

$0.53

$0.53

Operating net income available to common shareholders(2)

$0.62

$0.60

$0.55

$0.55

$0.55

Cash dividends

$0.19

$0.19

$0.19

$0.19

$0.18

Common shareholders' equity

$18.46

$18.92

$18.52

$18.33

$17.81

Common shareholders' equity (tangible)(2)

$15.14

$15.61

$15.12

$14.92

$14.39

Weighted average shares (basic)

190,642

191,386

179,720

180,405

181,658

Weighted average shares (diluted)

192,234

192,997

181,655

182,197

183,349

(1)Includes related unrealized holding gains (losses) for available for sale ("AFS") securities

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release

Three months ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Asset Quality

Net charge-offs to average loans (annualized)

0.14 %

0.34 %

0.25 %

0.24 %

0.18 %

Non-performing loans to total net loans

0.67 %

0.70 %

0.72 %

0.76 %

0.83 %

Non-performing assets to total assets

0.52 %

0.54 %

0.55 %

0.58 %

0.63 %

ACL - loans(1) to total loans

1.45 %

1.48 %

1.51 %

1.51 %

1.57 %

ACL - loans(1) to non-performing loans

216 %

211 %

209 %

198 %

189 %

Profitability

Return on average assets

1.33 %

1.20 %

1.20 %

1.23 %

1.25 %

Operating return on average assets(2)

1.40 %

1.39 %

1.30 %

1.27 %

1.29 %

Return on average common shareholders' equity

12.52 %

11.14 %

11.16 %

11.69 %

12.26 %

Operating return on average common
shareholders' equity (tangible)(2)

15.94 %

15.71 %

14.76 %

14.86 %

15.79 %

Net interest margin

3.58 %

3.60 %

3.58 %

3.59 %

3.57 %

Efficiency ratio(2)

56.8 %

57.3 %

56.7 %

60.0 %

56.5 %

Non-interest expense to total average assets

2.49 %

2.71 %

2.54 %

2.64 %

2.44 %

Operating non-interest expense to total
average assets(2)

2.41 %

2.47 %

2.42 %

2.53 %

2.38 %

Capital Ratios(3)

Tangible common equity ratio ("TCE")(2)

8.4 %

8.8 %

8.6 %

8.5 %

8.3 %

Tier 1 leverage ratio

9.9 %

10.0 %

9.9 %

9.7 %

9.6 %

Common equity Tier 1 capital ratio

12.2 %

12.2 %

11.9 %

11.8 %

11.6 %

Tier 1 risk-based capital ratio

12.9 %

12.9 %

12.7 %

12.6 %

12.4 %

Total risk-based capital ratio

16.0 %

16.0 %

15.2 %

15.2 %

15.0 %

(1) "ACL - loans" relates to the allowance for credit losses ("ACL") specifically on "Net Loans" and does not include the ACL related to off-balance-sheet

       ("OBS") credit exposures

(2) Non-GAAP financial measure. Refer to the calculation on the page titled "Reconciliation of Non-GAAP Measures" at the end of this press release

(3) Regulatory capital ratios as of September 30, 2026 are preliminary estimates and prior periods are actual

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED ENDING BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

ASSETS

Cash and due from banks

$     272,674

$     325,259

$     311,796

$     271,463

$     307,267

Other interest-earning assets

969,295

1,076,395

871,066

911,155

643,111

Loans held for sale

16,044

33,902

11,887

16,316

19,875

Investment securities

5,321,773

5,122,759

4,861,967

4,833,744

5,045,270

Net loans

25,977,924

25,934,293

24,266,345

24,144,884

24,041,489

Less: ACL - loans(1)

(375,635)

(382,580)

(367,489)

(364,462)

(376,258)

      Loans, net

25,602,289

25,551,713

23,898,856

23,780,422

23,665,231

Net premises and equipment

181,019

186,184

168,941

175,240

178,644

Accrued interest receivable

123,664

121,220

112,083

113,698

114,003

Goodwill and intangible assets

627,923

633,485

607,647

612,996

618,361

Other assets

1,660,689

1,505,803

1,393,195

1,403,366

1,403,324

    Total Assets

$ 34,775,370

$ 34,556,720

$ 32,237,438

$ 32,118,400

$ 31,995,086

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$ 28,821,365

$ 28,250,342

$ 26,768,335

$ 26,589,407

$ 26,332,490

Borrowings

1,232,869

1,713,976

1,252,579

1,297,375

1,471,961

Other liabilities

1,034,384

776,589

711,241

741,171

777,037

    Total Liabilities

31,088,618

30,740,907

28,732,155

28,627,953

28,581,488

Shareholders' equity

3,686,752

3,815,813

3,505,283

3,490,447

3,413,598

    Total Liabilities and Shareholders' Equity

$ 34,775,370

$ 34,556,720

$ 32,237,438

$ 32,118,400

$ 31,995,086

LOANS, DEPOSITS AND BORROWINGS DETAIL:

Loans, by type:

Real estate - commercial mortgage

$ 10,915,582

$ 10,914,813

$  9,985,368

$  9,820,944

$  9,734,156

Commercial and industrial

4,547,315

4,559,732

4,494,031

4,539,060

4,437,905

Real estate - residential mortgage

7,332,034

7,250,949

6,735,338

6,669,993

6,617,017

Real estate - home equity

1,355,940

1,336,068

1,253,192

1,242,831

1,214,399

Real estate - construction

881,493

946,654

876,498

970,298

1,134,748

Consumer

574,893

570,093

565,041

564,349

566,291

Leases and other loans(2)

370,667

355,984

356,877

337,409

336,973

Total Net Loans

$ 25,977,924

$ 25,934,293

$ 24,266,345

$ 24,144,884

$ 24,041,489

Deposits, by type:

Noninterest-bearing demand

$  5,199,747

$  5,245,586

$  5,334,920

$  5,256,096

$  5,136,210

Interest-bearing demand

8,470,142

8,146,057

7,823,683

7,970,188

8,035,393

Savings

9,878,185

9,277,215

8,875,256

8,512,829

8,417,678

     Total demand and savings

23,548,074

22,668,858

22,033,859

21,739,113

21,589,281

Brokered

546,707

975,204

715,850

855,042

709,667

Time

4,726,584

4,606,280

4,018,626

3,995,252

4,033,542

Total Deposits

$ 28,821,365

$ 28,250,342

$ 26,768,335

$ 26,589,407

$ 26,332,490

Borrowings, by type:

Federal Home Loan Bank advances

$              —

$     552,500

$     200,000

$     250,000

$     450,000

Senior debt and subordinated debt

469,876

469,668

367,720

367,637

367,557

Other borrowings

762,993

691,808

684,859

679,738

654,404

Total Borrowings

$  1,232,869

$  1,713,976

$  1,252,579

$  1,297,375

$  1,471,961

(1) "ACL - loans" relates to the ACL specifically on "Net Loans" and does not include the ACL related to OBS credit exposures

(2) Includes equipment lease financing, overdraft and net origination fees and costs

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share and share data)

Three months ended

Nine months ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Sep 30

2026

2026

2026

2025

2025

2026

2025

Net Interest Income:

Interest income

$ 440,908

$ 428,154

$ 390,056

$ 403,416

$ 411,006

$ 1,259,118

$ 1,213,458

Interest expense

150,873

143,902

128,033

137,374

146,808

422,809

443,153

    Net Interest Income

290,035

284,252

262,023

266,042

264,198

836,309

770,305

Provision for credit losses

4,059

4,897

14,442

2,948

10,245

23,397

32,749

    Net Interest Income after Provision

285,976

279,355

247,581

263,094

253,953

812,912

737,556

Non-Interest Income:

Wealth management

25,257

23,139

24,496

23,879

22,639

72,891

66,705

Commercial banking:

   Merchant and card

7,298

7,496

6,343

6,847

7,327

21,137

21,294

   Cash management

8,890

8,817

8,363

8,374

8,335

26,070

24,510

   Capital markets

3,675

3,530

3,614

3,730

2,908

10,819

8,264

   Other commercial banking

5,113

4,979

4,486

5,162

4,595

14,578

13,857

Total commercial banking

24,976

24,822

22,806

24,113

23,165

72,604

67,925

Consumer banking:

  Card

8,673

8,596

7,887

8,366

8,246

25,156

23,748

  Overdraft

4,265

3,858

3,798

4,109

4,153

11,921

11,265

  Other consumer banking

2,722

2,891

2,491

2,967

2,775

8,104

7,757

Total consumer banking

15,660

15,345

14,176

15,442

15,174

45,181

42,770

Mortgage banking

5,110

4,938

3,955

3,636

3,711

14,003

10,841

Other

6,222

11,062

4,408

2,910

5,718

21,693

18,547

Non-interest income before investment securities
(losses) gains

77,225

79,306

69,841

69,980

70,407

226,372

206,788

Investment securities (losses) gains, net

—

—

—

—

—

—

(2)

    Total Non-Interest Income

77,225

79,306

69,841

69,980

70,407

226,372

206,786

Non-Interest Expense:

Salaries and employee benefits

125,764

120,184

109,917

121,632

111,265

355,865

321,914

Data processing and software

20,898

20,419

18,662

19,695

18,535

59,979

55,396

Net occupancy

18,714

17,841

18,229

17,554

15,954

54,784

50,571

Other outside services

15,370

14,999

12,750

13,105

12,951

43,119

36,797

Intangible amortization

5,561

5,910

5,349

5,365

5,368

16,821

17,097

FDIC insurance

4,465

4,430

4,249

4,540

5,089

13,144

15,638

Equipment 

3,832

4,086

3,924

4,001

3,926

11,842

12,175

Marketing

3,636

2,818

2,331

1,694

2,470

8,785

7,595

Professional fees

3,229

2,342

2,239

2,088

2,320

7,809

3,405

Acquisition-related expenses

1,740

13,839

2,644

802

—

18,223

380

Other

15,308

24,086

20,000

22,510

18,696

59,393

57,877

    Total Non-Interest Expense

218,517

230,954

200,294

212,986

196,574

649,764

578,845

    Income Before Income Taxes

144,684

127,707

117,128

120,088

127,786

389,520

365,497

Income tax expense

28,027

25,293

22,367

21,118

27,332

75,687

72,858

    Net Income

116,657

102,414

94,761

98,970

100,454

313,833

292,639

Preferred stock dividends

(2,562)

(2,562)

(2,562)

(2,562)

(2,562)

(7,686)

(7,686)

     Net Income Available to Common  Shareholders

$ 114,095

$   99,852

$   92,199

$   96,408

$   97,892

$ 306,147

$ 284,953

Three months ended

Nine months ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Sep 30

2026

2026

2026

2025

2025

2026

2025

PER SHARE:

Net income available to common shareholders:

Net income available to common shareholders (basic)

$0.60

$0.52

$0.51

$0.53

$0.54

$1.63

$1.57

Net income available to common shareholders (diluted)

$0.59

$0.52

$0.51

$0.53

$0.53

$1.62

$1.55

Cash dividends

$0.19

$0.19

$0.19

$0.19

$0.18

$0.57

$0.54

Weighted average shares (basic)

190,642

191,386

179,720

180,405

181,658

187,289

182,030

Weighted average shares (diluted)

192,234

192,997

181,655

182,197

183,349

188,977

183,718

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

Three months ended

September 30, 2026

June 30, 2026

September 30, 2025

Average

Yield/

Average

Yield/

Average

Yield/

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS

Interest-earning assets:

Net loans(2)

$ 25,973,093

$ 380,564

5.82 %

$ 25,883,823

$ 374,426

5.80 %

$ 24,020,322

$ 358,443

5.93 %

Investment securities(3)

5,537,868

51,940

3.75 %

5,233,693

47,661

3.64 %

5,330,905

49,442

3.70 %

Other interest-earning assets

1,228,130

12,711

4.11 %

997,586

10,377

4.17 %

622,832

7,557

4.83 %

Total Interest-Earning Assets

32,739,091

445,215

5.41 %

32,115,102

432,464

5.40 %

29,974,059

415,442

5.51 %

Noninterest-earning assets:

Cash and due from banks

314,436

310,904

312,578

Premises and equipment

184,787

189,791

181,116

Other assets

1,985,950

1,978,494

1,837,179

Less: ACL - loans(4)

(387,637)

(400,683)

(380,894)

Total Assets

$ 34,836,627

$ 34,193,608

$ 31,924,038

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:

Demand deposits

$ 8,318,136

$   33,302

1.59 %

$ 8,279,932

$   32,443

1.57 %

$ 7,876,227

$   36,369

1.83 %

Savings deposits

9,706,048

53,922

2.20 %

9,128,400

47,299

2.08 %

8,391,379

48,237

2.28 %

Brokered deposits

812,556

8,110

3.96 %

887,546

8,589

3.88 %

694,486

7,689

4.39 %

Time deposits

4,712,221

40,427

3.40 %

4,540,334

38,406

3.39 %

4,097,195

37,942

3.67 %

Total Interest-Bearing Deposits

23,548,961

135,761

2.29 %

22,836,212

126,737

2.23 %

21,059,287

130,237

2.45 %

Borrowings and other interest-bearing
liabilities

1,566,225

15,112

3.83 %

1,744,871

17,165

3.95 %

1,564,996

16,571

4.20 %

Total Interest-Bearing Liabilities

25,115,186

150,873

2.38 %

24,581,083

143,902

2.35 %

22,624,283

146,808

2.57 %

Noninterest-bearing liabilities:

Demand deposits

5,222,023

5,178,454

5,239,393

Other liabilities

691,690

645,650

698,994

Total Liabilities

31,028,899

30,405,187

28,562,670

Total Deposits

28,770,984

1.87 %

28,014,666

1.81 %

26,298,680

1.96 %

Total interest-bearing liabilities and
non-interest bearing deposits (cost of
funds)

30,337,209

1.97 %

29,759,537

1.94 %

27,863,676

2.09 %

Shareholders' equity

3,807,728

3,788,421

3,361,368

Total Liabilities and Shareholders'
Equity

$ 34,836,627

$ 34,193,608

$ 31,924,038

Net interest income/net interest margin
(fully taxable equivalent)

294,342

3.58 %

288,562

3.60 %

268,634

3.57 %

Tax equivalent adjustment

(4,307)

(4,310)

(4,436)

Net Interest Income

$ 290,035

$ 284,252

$ 264,198

(1)Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances

(2) Average balances include non-performing loans

(3)Average balances include amortized historical cost for AFS securities; the related unrealized holding gains (losses) are included in other assets

(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)

Three months ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Loans, by type:

Real estate - commercial mortgage

$ 10,906,964

$ 10,887,986

$ 9,930,713

$ 9,785,717

$ 9,721,395

Commercial and industrial

4,572,754

4,602,800

4,522,694

4,473,522

4,494,662

Real estate - residential mortgage

7,301,234

7,189,941

6,696,646

6,646,318

6,560,413

Real estate - home equity

1,324,822

1,298,632

1,235,977

1,223,293

1,191,465

Real estate - construction

918,036

962,625

926,026

1,014,343

1,125,130

Consumer

593,202

592,106

576,852

577,136

590,658

Leases and other loans(1)

356,081

349,733

336,747

332,760

336,599

Total Net Loans

$ 25,973,093

$ 25,883,823

$ 24,225,655

$ 24,053,089

$ 24,020,322

Deposits, by type:

Noninterest-bearing demand

$ 5,222,023

$ 5,178,454

$ 5,120,028

$ 5,243,390

$ 5,239,393

Interest-bearing demand

8,318,136

8,279,932

7,774,121

7,984,980

7,876,227

Savings

9,706,048

9,128,400

8,684,478

8,519,075

8,391,379

     Total demand and savings

23,246,207

22,586,786

21,578,627

21,747,445

21,506,999

Brokered

812,556

887,546

856,823

803,755

694,486

Time

4,712,221

4,540,334

4,015,644

3,986,459

4,097,195

Total Deposits

$ 28,770,984

$ 28,014,666

$ 26,451,094

$ 26,537,659

$ 26,298,680

Borrowings, by type:

Federal funds purchased

$            —

$            —

$            —

$            54

$            —

Federal Home Loan Bank advances

241,032

475,983

221,039

237,880

484,022

Senior debt and subordinated debt

469,787

509,493

367,679

367,598

367,517

Other borrowings and other interest-bearing liabilities

855,406

759,395

770,395

740,305

713,456

Total Borrowings

$ 1,566,225

$ 1,744,871

$ 1,359,113

$ 1,345,837

$ 1,564,995

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

(dollars in thousands)

Nine months ended September 30, 

2026

2025

Average

Yield/

Average

Yield/

Balance

Interest(1)

Rate

Balance

Interest(1)

Rate

ASSETS

Interest-earning assets:

Net loans(2)

$      25,367,258

$   1,096,831

5.78 %

$      23,975,693

$   1,055,558

5.88 %

Investment securities(3)

5,259,513

144,372

3.66 %

5,307,436

146,147

3.67 %

Other interest-earning assets

1,001,295

30,833

4.11 %

698,727

24,919

4.76 %

Total Interest-Earning Assets

31,628,066

1,272,036

5.37 %

29,981,856

1,226,624

5.46 %

Noninterest-Earning assets:

Cash and due from banks

308,524

297,491

Premises and equipment

182,637

186,414

Other assets

1,954,038

1,850,254

Less: ACL - loans(4)

(386,382)

(383,776)

Total Assets

$      33,686,883

$      31,932,239

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-Bearing liabilities:

Demand deposits

$        8,126,056

$        94,782

1.56 %

$        7,810,681

$      105,303

1.80 %

Savings deposits

9,176,718

145,884

2.13 %

8,195,790

140,800

2.30 %

Brokered deposits

852,146

24,908

3.91 %

761,952

25,222

4.43 %

Time deposits

4,425,284

112,729

3.41 %

4,112,258

118,998

3.87 %

Total Interest-Bearing Deposits

22,580,204

378,303

2.24 %

20,880,681

390,323

2.50 %

Borrowings and other interest-bearing liabilities

1,557,497

44,505

3.82 %

1,691,351

52,830

4.18 %

Total Interest-Bearing Liabilities

24,137,701

422,808

2.34 %

22,572,032

443,153

2.62 %

Noninterest-Bearing liabilities:

Demand deposits

5,173,875

5,317,851

Other liabilities

660,987

735,460

Total Liabilities

29,972,563

28,625,343

Total Deposits

27,754,079

1.82 %

26,198,532

1.99 %

Total interest-bearing liabilities and non-interest
bearing deposits (cost of funds)

29,311,576

1.93 %

27,889,883

2.12 %

Shareholders' equity

3,714,320

3,306,896

Total Liabilities and Shareholders' Equity

$      33,686,883

$      31,932,239

Net interest income/net interest margin (fully taxable
equivalent)

849,228

3.58 %

783,471

3.49 %

Tax equivalent adjustment

(12,919)

(13,166)

Net Interest Income

$      836,309

$      770,305

(1)  Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowances.

(2) Average balances include non-performing loans.

(3) Average balances include amortized historical cost for AFS; the related unrealized holding gains (losses) are included in other assets.

(4) ACL - loans relates to the ACL for net loans and does not include the ACL related to OBS credit exposures, which is included in other liabilities.

FULTON FINANCIAL CORPORATION

AVERAGE LOANS, DEPOSITS AND BORROWINGS DETAIL (UNAUDITED)

(dollars in thousands)

Nine months ended September 30, 

2026

2025

Loans, by type:

Real estate - commercial mortgage

$            10,573,385

$              9,676,574

Commercial and industrial

4,571,800

4,543,967

Real estate - residential mortgage

7,064,822

6,459,649

Real estate - home equity

1,286,802

1,177,209

Real estate - construction

935,413

1,197,159

Consumer

587,447

601,877

Leases and other loans(1)

347,589

319,258

Total Net Loans

$            25,367,258

$            23,975,693

Deposits, by type:

Noninterest-bearing demand

$              5,173,875

$              5,317,851

Interest-bearing demand

8,126,056

7,810,681

Savings

9,176,718

8,195,790

   Total demand and savings

22,476,649

21,324,322

Brokered

852,146

761,952

Time

4,425,284

4,112,258

Total Deposits

$            27,754,079

$            26,198,532

Borrowings, by type:

Federal funds purchased 

$                            —

$                         366

Federal Home Loan Bank advances

312,758

634,370

Senior debt and subordinated debt

449,361

367,438

Other borrowings and other interest-bearing liabilities

795,378

689,177

Total Borrowings

$              1,557,497

$              1,691,351

(1) Includes equipment lease financing, overdraft and net origination fees and costs.

FULTON FINANCIAL CORPORATION

ASSET QUALITY INFORMATION (UNAUDITED)

(dollars in thousands)

Three months ended 

Nine months ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

Sep 30

Sep 30

2026

2026

2026

2025

2025

2026

2025

Allowance for credit losses related to net loans:

Balance at beginning of period

$ 382,580

$ 367,489

$ 364,462

$ 376,258

$ 377,337

$ 364,462

$ 379,156

Initial allowance for credit losses on purchased loans 

—

30,993

3,351

—

—

34,344

—

Loans charged off:

       Real estate - commercial mortgage

(5,839)

(10,789)

(4,102)

(14,104)

(3,906)

(20,730)

(22,414)

       Commercial and industrial

(2,107)

(12,015)

(10,545)

(5,295)

(5,847)

(24,667)

(15,492)

       Real estate - residential mortgage

(2,347)

(121)

(391)

(58)

(394)

(2,859)

(995)

       Consumer and home equity

(1,936)

(2,119)

(2,164)

(2,212)

(2,527)

(6,219)

(6,605)

       Real estate - construction

—

—

—

—

(5,286)

—

(5,387)

       Leases and other loans(1)

(1,100)

(966)

(1,116)

(1,140)

(1,479)

(3,180)

(4,495)

       Total loans charged off

(13,329)

(26,010)

(18,318)

(22,809)

(19,439)

(57,655)

(55,388)

Recoveries of loans previously charged off:

       Real estate - commercial mortgage

309

1,629

701

633

4,307

2,639

4,814

       Commercial and industrial

2,566

1,280

740

6,592

3,205

4,586

11,785

       Real estate - residential mortgage

170

197

72

230

33

439

410

       Consumer and home equity

495

484

584

861

726

1,561

2,285

       Real estate - construction

—

—

884

—

47

884

228

       Leases and other loans(1)

332

404

429

146

192

1,165

633

    Total recoveries of loans previously charged off

3,872

3,994

3,410

8,462

8,510

11,274

20,155

Net loans charged off

(9,457)

(22,016)

(14,908)

(14,347)

(10,929)

(46,381)

(35,233)

Provision for credit losses(2)

2,761

6,308

14,584

2,551

9,850

23,653

32,335

Other 

(249)

(194)

—

—

—

(443)

—

Balance at end of period

$ 375,635

$ 382,580

$ 367,489

$ 364,462

$ 376,258

$ 375,635

$ 376,258

Net charge-offs to average loans(3)

0.14 %

0.34 %

0.25 %

0.24 %

0.18 %

0.24 %

0.20 %

Provision for credit losses related to OBS Credit Exposures

Provision for credit losses(2)

$    1,298

$ (1,411)

$   (142)

$      397

$      395

$   (256)

$      414

NON-PERFORMING ASSETS:

Non-accrual loans

$ 136,053

$ 146,457

$ 142,035

$ 153,872

$ 150,137

Loans 90 days past due and accruing

37,710

34,815

33,816

29,924

48,597

    Total non-performing loans

173,763

181,272

175,851

183,796

198,734

Other real estate owned

5,645

5,791

1,648

1,365

2,305

Total non-performing assets

$ 179,408

$ 187,063

$ 177,499

$ 185,161

$ 201,039

NON-PERFORMING LOANS, BY TYPE:

Commercial and industrial

$  38,162

$  39,466

$  47,759

$  47,756

$  48,817

Real estate - commercial mortgage

62,779

66,445

64,890

74,981

87,789

Real estate - residential mortgage

54,771

56,821

47,826

45,569

44,689

Consumer and home equity

14,427

12,387

12,339

11,875

12,658

Real estate - construction

3,613

6,135

3,000

2,267

3,461

Leases and other loans(1)

11

18

37

1,348

1,320

Total non-performing loans

$ 173,763

$ 181,272

$ 175,851

$ 183,796

$ 198,734

(1) Includes equipment lease financing, overdrafts and net origination fees and costs.

(2) The sum of these amounts are reflected in the provision for credit losses in the Condensed Consolidated Statements of Income.

(3) Quarterly results are annualized.

FULTON FINANCIAL CORPORATION

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

(dollars in thousands, except per share and share data)

Explanatory note:

This press release contains supplemental financial information, as detailed below, that has been derived by methods other than GAAP. The
Corporation has presented these non-GAAP financial measures because it believes that these measures provide useful and comparative
information to assess trends in the Corporation's results of operations and financial condition. Presentation of these non-GAAP financial
measures is consistent with how the Corporation evaluates its performance internally and these non-GAAP financial measures are frequently
used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management
believes that these non-GAAP financial measures, in addition to GAAP measures, are also useful to investors to evaluate the Corporation's
results. Investors should recognize that the Corporation's presentation of these non-GAAP financial measures might not be comparable to
similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis
measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure follow:

Three months ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Operating net income available to common shareholders

Net income available to common shareholders

$      114,095

$       99,852

$       92,199

$       96,408

$       97,892

Less: Other (1)  

—

—

—

(4,989)

(738)

Plus: Core deposit intangible amortization

5,467

5,816

5,255

5,255

5,255

Plus: Acquisition-related expense

1,740

13,839

2,644

802

—

Plus: FDIC special assessment

—

—

—

(95)

—

Plus: FultonFirst implementation and asset disposals

15

(189)

1,556

2,795

(207)

Plus: Debt extinguishment costs

—

787

—

—

—

Less: Tax impact of adjustments

(1,517)

(4,253)

(1,985)

(791)

(905)

Operating net income available to common shareholders (numerator)

$      119,800

$     115,852

$       99,669

$       99,385

$     101,297

Weighted average shares (diluted) (denominator)

192,234

192,997

181,655

182,197

183,349

Operating net income available to common shareholders, per share
(diluted)

$           0.62

$          0.60

$          0.55

$          0.55

$          0.55

Common shareholders' equity (tangible), per share

Shareholders' equity

$   3,686,752

$  3,815,813

$  3,505,283

$  3,490,447

$  3,413,598

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(627,923)

(633,485)

(607,647)

(612,996)

(618,361)

Tangible common shareholders' equity (numerator)

$   2,865,951

$  2,989,450

$  2,704,758

$  2,684,573

$  2,602,359

Shares outstanding, end of period (denominator)

189,285

191,461

178,843

179,895

180,865

Common shareholders' equity (tangible), per share

$          15.14

$         15.61

$         15.12

$         14.92

$         14.39

(1) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the
provision for credit losses related to a loan acquired in the Republic Transaction.

Three months ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Operating return on average assets

Net income

$      116,657

$     102,414

$       94,761

$       98,970

$     100,454

Less: Other (1)

—

—

—

(4,989)

(738)

Plus: Core deposit intangible amortization

5,467

5,816

5,255

5,255

5,255

Plus: Acquisition-related expense

1,740

13,839

2,644

802

—

Plus: FDIC special assessment

—

—

—

(95)

—

Plus: FultonFirst implementation and asset disposals

15

(189)

1,556

2,795

(207)

Plus: Debt extinguishment costs

—

787

—

—

—

Less: Tax impact of adjustments

(1,517)

(4,253)

(1,985)

(791)

(905)

Operating net income (numerator)

$      122,362

$     118,414

$     102,231

$     101,947

$     103,859

Total average assets 

$  34,836,627

$ 34,193,608

$ 31,999,228

$ 32,013,163

$ 31,924,038

Less: Average net core deposit intangible

(61,185)

(66,665)

(54,629)

(60,726)

(65,999)

Total operating average assets     (denominator)

$  34,775,442

$ 34,126,943

$ 31,944,599

$ 31,952,437

$ 31,858,039

Operating return on average assets(2)

1.40 %

1.39 %

1.30 %

1.27 %

1.29 %

Operating return on average common shareholders' equity (tangible)

Net income available to common shareholders

$      114,095

$       99,852

$       92,199

$       96,408

$       97,892

Less: Other (1)

—

—

—

(4,989)

(738)

Plus: Intangible amortization

5,561

5,910

5,349

5,365

5,368

Plus: Acquisition-related expense

1,740

13,839

2,644

802

—

Plus: FDIC special assessment

—

—

—

(95)

—

Plus: FultonFirst implementation and asset disposals

15

(189)

1,556

2,795

(207)

Plus: Debt extinguishment costs

—

787

—

—

—

Less: Tax impact of adjustments

(1,536)

(4,273)

(2,005)

(814)

(929)

Adjusted net income available to common shareholders (numerator)

$      119,875

$     115,926

$       99,743

$       99,472

$     101,386

Average shareholders' equity

$   3,807,728

$  3,788,421

$  3,543,911

$  3,464,539

$  3,361,368

Less: Average preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Average goodwill and intangible assets

(630,639)

(635,278)

(610,262)

(615,600)

(620,986)

Average tangible common shareholders' equity (denominator)

$   2,984,211

$  2,960,265

$  2,740,771

$  2,656,061

$  2,547,504

Operating return on average common shareholders' equity (tangible)(2)

15.94 %

15.71 %

14.76 %

14.86 %

15.79 %

Tangible common equity to tangible assets (TCE Ratio)

Shareholders' equity

$   3,686,752

$  3,815,813

$  3,505,283

$  3,490,447

$  3,413,598

Less: Preferred stock

(192,878)

(192,878)

(192,878)

(192,878)

(192,878)

Less: Goodwill and intangible assets

(627,923)

(633,485)

(607,647)

(612,996)

(618,361)

Tangible common shareholders' equity (numerator)

$   2,865,951

$  2,989,450

$  2,704,758

$  2,684,573

$  2,602,359

Total assets

$  34,775,370

$ 34,556,720

$ 32,237,438

$ 32,118,400

$ 31,995,086

Less: Goodwill and intangible assets

(627,923)

(633,485)

(607,647)

(612,996)

(618,361)

Total tangible assets (denominator)

$  34,147,447

$ 33,923,235

$ 31,629,791

$ 31,505,404

$ 31,376,725

Tangible common equity to tangible assets

8.39 %

8.81 %

8.55 %

8.52 %

8.29 %

(1) Includes loan recovery adjustments of $5.0 million and $0.6 million in the fourth quarter of 2025 and the third quarter of 2025, respectively, reflected in the
provision for credit losses related to a loan acquired in the Republic Transaction.

(2) Results are annualized.

Three months ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2026

2026

2026

2025

2025

Efficiency ratio

Non-interest expense

$      218,517

$     230,954

$     200,294

$     212,986

$     196,574

Less: Acquisition-related expense

(1,740)

(13,839)

(2,644)

(802)

—

Less: FDIC special assessment

—

—

—

95

—

Less: FultonFirst implementation and asset disposals

(15)

189

(1,556)

(2,795)

207

Less: Intangible amortization

(5,561)

(5,910)

(5,349)

(5,365)

(5,368)

Less: Debt extinguishment costs

—

(787)

—

—

—

Operating non-interest expense (numerator)

$      211,201

$     210,607

$     190,745

$     204,119

$     191,413

Net interest income

$      290,035

$     284,252

$     262,023

$     266,042

$     264,198

Tax equivalent adjustment

4,307

4,310

4,303

4,416

4,436

Plus: Total non-interest income

77,225

79,306

69,841

69,980

70,407

Less: Other revenue

—

—

—

11

(138)

Plus: Investment securities (gains) losses, net

—

—

—

—

—

Total revenue (denominator)

$      371,567

$     367,868

$     336,167

$     340,449

$     338,903

Efficiency ratio

56.8 %

57.3 %

56.7 %

60.0 %

56.5 %

Operating non-interest expense to total average assets

Non-interest expense

$      218,517

$     230,954

$     200,294

$     212,986

$     196,574

Less: Intangible amortization

(5,561)

(5,910)

(5,349)

(5,365)

(5,368)

Less: Acquisition-related expense

(1,740)

(13,839)

(2,644)

(802)

—

Less: FDIC special assessment

—

—

—

95

—

Less: FultonFirst implementation and asset disposals

(15)

189

(1,556)

(2,795)

207

Less: Debt extinguishment costs

—

(787)

—

—

—

Operating non-interest expense (numerator)

$      211,201

$     210,607

$     190,745

$     204,119

$     191,413

Total average assets (denominator)

$  34,836,627

$ 34,193,608

$ 31,999,228

$ 32,013,163

$ 31,924,038

Operating non-interest expenses to total average assets(1)

2.41 %

2.47 %

2.42 %

2.53 %

2.38 %

(1) Results are annualized.

Nine months ended 

Sep 30

Sep 30

2026

2025

Operating net income available to common shareholders

Net income available to common shareholders

$      306,147

$     284,953

Less: Other (1)

—

(869)

Plus: Core deposit intangible amortization

16,537

16,756

Plus: Acquisition-related expense

18,223

380

Plus: FultonFirst implementation and asset disposals

1,382

(524)

Plus: Debt extinguishment costs

787

—

Less: Tax impact of adjustments

(7,755)

(3,306)

Operating net income available to common shareholders (numerator)

$      335,321

$     297,390

Weighted average shares (diluted) (denominator)

188,977

183,718

Operating net income available to common shareholders, per share
(diluted)

$           1.77

$          1.62

(1) Includes a loan recovery adjustment of $0.6 million for the nine months ended September 30, 2025, reflected in the provision for credit losses related to a
loan acquired in the Republic Transaction.

Media Contact: Lacey Dean (717) 735-8688
Investor Contact: Rick Kraemer (717) 327-2567

SOURCE Fulton Financial Corporation

Pinnacle Financial (PNFP - Free Report) came out with quarterly earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $2.27 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.07%. A quarter ago, it was expected that this regional bank operator would post earnings of $2.46 per share when it actually produced earnings of $2.5, delivering a surprise of +1.63%.

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

Pinnacle Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $1.31 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.36%. This compares to year-ago revenues of $544.8 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

Pinnacle Financial shares have lost about 0.1% since the beginning of the year versus the S&P 500's gain of 12.7%.

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

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

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

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $1.31 billion in revenues for the coming quarter and $10.20 on $5.03 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Stock Yards Bancorp (SYBT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026.

This holding company for Stock Yards Bank & Trust Co. is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of +8.9%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level.

Stock Yards Bancorp's revenues are expected to be $118.82 million, up 16.9% from the year-ago quarter.

In its upcoming report, Eastern Bankshares, Inc. (EBC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.49 per share, reflecting an increase of 32.4% compared to the same period last year. Revenues are forecasted to be $308.79 million, representing a year-over-year increase of 27.9%.

The current level reflects a downward revision of 0.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

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.

Bearing this in mind, let's now explore the average estimates of specific Eastern Bankshares metrics that are commonly monitored and projected by Wall Street analysts.

Analysts forecast 'Efficiency ratio (GAAP)' to reach 52.6%. The estimate is in contrast to the year-ago figure of 58.2%.

Analysts predict that the 'Net interest margin (FTE)' will reach 3.6%. The estimate compares to the year-ago value of 3.5%.

The average prediction of analysts places 'Average Balance - Total interest-earning assets' at $28.89 billion. The estimate is in contrast to the year-ago figure of $23.49 billion.

According to the collective judgment of analysts, 'Total Noninterest Income' should come in at $50.03 million. Compared to the current estimate, the company reported $41.30 million in the same quarter of the previous year.

Analysts expect 'Net Interest Income' to come in at $257.88 million. Compared to the present estimate, the company reported $200.20 million in the same quarter last year.

It is projected by analysts that the 'Net Interest Income (FTE)' will reach $264.14 million. Compared to the present estimate, the company reported $205.40 million in the same quarter last year.

View all Key Company Metrics for Eastern Bankshares here>>>

Eastern Bankshares shares have witnessed a change of +0.5% in the past month, in contrast to the Zacks S&P 500 composite's +1% move. With a Zacks Rank #3 (Hold), EBC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Joby Aviation (JOBY -0.21%) has had a dismal year on Wall Street.

How bad has it been exactly? Try a roughly 68% drop since the start of the year. Indeed, since this time last October, the stock has lost nearly 75% of its value.

$4.64-$0.01 (-0.21%)

NYSE · As of 4:00 PM ET 10/21/26

Things don't seem to be getting better for it, either. Already trading near its 52-week low, the stock continues to lose investors' confidence, even as the company gets closer to achieving its biggest milestone yet: carrying its first paying passengers.

The mismatch between Joby stock's performance and the company's progress makes it an interesting investment to consider. Indeed, for investors with a high tolerance for risk, I think this eVTOL (electric vertical takeoff and landing) company could be one of the more compelling speculative investments to make. Here's why.

In three years, Joby will likely be taxiing paying passengers
Currently, Joby is in a good position. It has shown the world that its eVTOL aircraft can fly, including demonstrations in major metropolitan areas like New York City, San Francisco, and Dallas-Fort Worth.

It is also working through the fifth and final stage of the FAA type certification, while beginning real-world flights through the White House-backed eVTOL Integration Pilot Program (eIPP). With the help of this program, Joby could put paying passengers in the air before the end of 2026.

Meanwhile, the manufacturing of eVTOLs has also been picking up. Thanks to help from its partner Toyota (TM -0.85%), Joby is targeting production of four aircraft per month in 2027. Assuming it hits those production targets, Joby could manufacture 48 aircraft annually, leaving it with a sizable fleet by 2029. And if most, or even some, of those aircraft were flying in major metropolitan areas, the visibility could bolster confidence in the company -- a one-two punch for the stock.

Image source: Joby Aviation.

So, what will Joby be worth in three years?
By October 2029, I predict Joby will have returned to the price it started at in 2026 -- about $13 a share. That could turn a $10,000 investment today into about $28,000 in three years.

The main reason behind this prediction is revenue growth. Within three years, Joby is likely going to quadruple its revenue, probably even more. Indeed, many analysts are expecting more than $400 million in annual revenue from Joby in two years, as the chart below demonstrates.

Data by YCharts

What's not shown above is revenue from Joby's planned acquisition of Resonant Sciences. Over the past 12 months, Resonant Sciences has generated more than $100 million in revenue, growing about 40% year over year. If that growth continues, Resonant could become a significant source of revenue for Joby in 2029.

All in all, this year's sell-off of Joby has helped reset expectations around the stock, but I don't think it has made Joby a worse investment. As long as it can put paying passengers in the air as it plans, investors buying at today's price could be handsomely rewarded over the next three years.

New Colorado facility strengthens domestic 3D printing production capabilities for aerospace, defense, and semiconductor equipment manufacturers while advancing supply chain resilienceAdds 50,000 sq. foot of production and office space at Littleton, CO. campusIncreases opportunities for workforce development in Colorado region
ROCK HILL, S.C., Oct. 21, 2026 (GLOBE NEWSWIRE) -- 3D Systems (NYSE: DDD) today announced the grand opening of its new Industrial Technology Center in Littleton, Colorado, expanding the company's ability to help aerospace, defense, and semiconductor equipment manufacturers accelerate the development, qualification, and production of mission-critical components using 3D printing.

The addition of approximately 50,000 square feet of manufacturing and office space increases the 3D Systems’ advanced manufacturing capacity to approximately 270,000 square feet across Europe and US, creating one of the industry’s most comprehensive additive manufacturing offerings. The expanded facility in Colorado strengthens domestic manufacturing capacity, enhances supply chain resilience, and supports growing demand for qualified U.S.-based production.

"Customers today need more than manufacturing capacity. They need a trusted partner that can help them develop applications, qualify processes, and scale production with confidence," said Reji Puthenveetil, Executive Vice President, Additive Solutions, 3D Systems. "The expansion of our Littleton campus allows us to rapidly scale production while leveraging the same validated processes, quality systems, and manufacturing expertise that customers depend upon for their most critical applications."

From Left: Joe Zuiker, 3D Systems. Reji Puthenveetil, 3D Systems. Representative Sheila Lieder, Colorado Assembly. Jeff Graves, CEO, 3D Systems. US Senator John Hickenlooper. Phyllis Nordstorm, 3D Systems. Merrill Stillwell, Councilmember City of Littleton​, CO. Trista Borrego​, Littleton CO. Business Chamber.

Supporting America's Industrial Base

The Littleton campus now serves as a strategic hub for customers seeking to accelerate adoption of additive manufacturing while reducing development risk and shortening time to production.

The expansion reflects increasing demand for domestic manufacturing solutions across aerospace, defense, and semiconductor equipment markets, where secure supply chains, production readiness, and manufacturing flexibility are becoming increasingly important.

Combined with the company's expertise in additive manufacturing hardware, materials, software, and application engineering, the facility provides customers with a pathway from concept development through qualified production.

Built for Qualified Production

The Littleton facility maintains certifications and registrations required to support highly regulated and mission-critical applications, including:

ISO9001 / AS9100D CertifiedITAR RegisteredJCP Registered / eJCP in-process (DD2345s)CMMC Level 2 compliant (CUI) These capabilities enable customers to move more efficiently from application development and qualification to repeatable, production-scale manufacturing.

Expanding from a Proven Foundation

The Industrial Technology Center builds upon decades of manufacturing experience in regulated healthcare applications. The Littleton campus has developed extensive expertise in process validation, quality management, and production of highly demanding applications, capabilities that are increasingly valuable to aerospace, defense, and semiconductor customers.

"The opening of the Industrial Technology Center not only expands our industrial manufacturing capabilities but also creates additional opportunities for the continued growth of our healthcare manufacturing operations," said Dr. Jeffrey Graves, President and CEO of 3D Systems. "This investment reinforces our commitment to advanced manufacturing in the United States while creating new opportunities for engineers, technicians, and manufacturing professionals in Colorado."

Creating a Unique Domestic Additive Manufacturing Ecosystem

Upon completion of planned investments, 3D Systems will offer one of the industry's most comprehensive domestic metal additive manufacturing ecosystems, encompassing:

Metal additive system development in California of the multi-phase U.S. Air Force sponsored programLarge-format printer manufacturing in South CarolinaApplication development, qualification, and certified parts production in Colorado This integrated approach positions the company to support customers seeking secure, domestic supply chains while accelerating the adoption of advanced manufacturing technologies.

"With validated facilities, certified quality systems, advanced applications expertise, and scalable production capacity already in place, we are uniquely positioned to help customers move from concept to qualified production faster and with less risk," said Dr. Graves. "Our goal is simple: help customers innovate more quickly while strengthening the resilience of critical American manufacturing supply chains."

About 3D Systems

For 40 years Chuck Hull’s curiosity and desire to improve the way products were designed and manufactured gave birth to 3D printing, 3D Systems, and the additive manufacturing industry. Since then, that same spark continues to ignite the 3D Systems team as we work side-by-side with our customers to change the way industries innovate. As a full-service solutions partner, we deliver industry-leading 3D printing technologies, materials and software to high-value markets such as medical and dental; aerospace, space and defense; transportation and motorsports; AI infrastructure; and durable goods. Each application-specific solution is powered by the expertise and passion of our employees who endeavor to achieve our shared goal of Transforming Manufacturing for a Better Future. More information on the company is available at www.3dsystems.com.

Forward-Looking Statements

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding the timing of product launches, regulatory approvals, market opportunities, expected revenue impact, and shareholder value. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward-looking statements can be identified by terms such as "believes," "belief," "expects," "may," "will," "estimates," "intends," "anticipates" or "plans" or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions, and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not, be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as of the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

Investor Contact: [email protected] 

Media Contact: [email protected] 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0c9259ac-7599-4b5a-b394-ae2c95aa57b4

HARTSVILLE, S.C., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a Mid-cap Value global packaging company, today reported financial results for the third quarter ended September 27, 2026.

Summary:

Net sales in the third quarter were $2.0 billion. Excluding divestitures, net sales were essentially flatReported GAAP net loss of $(732) million, or $(7.36) diluted earnings per share, reflecting a non-cash goodwill impairment charge of $(829) million attributable to the Consumer EMEA/APAC and Industrial APAC businesses, compared to GAAP net income of $123 million, or $1.23 diluted earnings per share, in the same period in 2025Third quarter adjusted net income was $167 million or $1.67 per adjusted diluted share, compared to $191 million or $1.92 per adjusted diluted share in the same period in 2025Generated operating cash flow of $285 million in the third quarter, and provided $218 million of operating cash flow year-to-date, which was net of approximately $103 million in one-time taxes paid in 2026 on gains from the sales of the divested TFP and ThermoSafe businesses in 2025 Third Quarter 2026 Consolidated Results    (Dollars in millions except per share data)              Three Months Ended Nine Months Ended GAAP ResultsSeptember
27, 2026September
28, 2025Change September
27, 2026September
28, 2025Change Net sales1$2,042 $2,131(4.2)% $5,604 $5,751(2.6)% Net sales related to discontinued operations —  —   —  321  Operating (loss)/profit1 (638) 195(427.2)%  (318) 497(163.9)% Operating profit related to discontinued operations —  —   —  664  Net (loss)/income attributable to Sonoco (732) 123(695.6)%  (560) 671(183.4)% EPS (diluted) (7.36) 1.23(698.4)%  (5.63) 6.74(183.5)%            Three Months Ended Nine Months Ended Non-GAAP Results2September
27, 2026September
28, 2025Change September
27, 2026September
28, 2025Change Adjusted operating profit1$268$308(13.1)% $711$768(7.4)% Adjusted EBITDA 352 386(9.0)%  952 1,052(9.5)% Adjusted net income attributable to Sonoco 167 191(12.5)%  437 464(5.8)% Adjusted EPS (diluted) 1.67 1.92(13.0)%  4.38 4.66(6.0)% 1Excludes results of discontinued operations. 2See the Company’s definitions of non-GAAP financial measures, explanations as to why they are used, and reconciliations to the most directly comparable GAAP financial measures later in this release. Third quarter 2026 net sales of $2.0 billion were down (4.2)% compared to the corresponding prior-year quarter, driven primarily by the November 3, 2025 divestiture of the ThermoSafe business. Net sales benefited from higher selling prices implemented to offset the effects of inflation and tariffs, which was partially offset by lower volume/mix. GAAP operating loss for the third quarter was $(638) million, which includes non-cash goodwill impairment charges of $(802) million and $(27) million, attributable to the Consumer Packaging segment’s EMEA/APAC businesses and the Industrial Paper Packaging segment’s APAC business, respectively, for a total non-cash goodwill impairment charge of $(829) million. In addition to this charge, solid productivity savings stemming from fixed cost reduction initiatives and procurement savings were more than offset by significant price/cost headwinds and lower volume/mix.Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were (6.4)% and 24.6%, respectively, in the third quarter, compared to 6.0% and 22.9%, respectively, in the same period in 2025.
“During the third quarter, our businesses faced a combination of external challenges. Drought conditions across parts of Europe and the U.S. impacted crop yields and pressured food can demand, while the impact of inflation on raw materials, freight, energy, and other operating costs exceeded our expectations. Through strong productivity initiatives and rigorous cost control, our teams were able to mitigate a significant portion of this impact and deliver resilient operating results,” said Howard Coker, President and Chief Executive Officer.

“Our Industrial Paper Packaging segment delivered another strong quarter, with results essentially in line with the second quarter despite a challenging operating environment. Productivity improvements remained a key driver of performance, while North America URB trade ton sales increased 10% year over year and mill utilization remained strong at 94%. Segment volume/mix was modestly positive, and additional URB pricing realized in September positions us to further offset inflationary pressures.”

“Results in Consumer Packaging fell short of expectations, as volume/mix declined 3% year over year due primarily to adverse weather conditions and unfavorable price/cost dynamics. Encouragingly, international paper can operations performed well, with double-digit volume growth year over year driven by sustained demand for snack products across emerging markets.”

Paul Joachimczyk, Sonoco’s Chief Financial Officer, added, “Our businesses once again generated strong operating cash flow in the third quarter, delivering $285 million despite seasonal working capital headwinds. Year-to-date operating cash flow includes $103 million of one-time tax payments related to gains on our 2025 divestitures. We continued to strengthen our balance sheet during the quarter, reducing total debt and net debt by $162 million and $176 million, respectively, while successfully refinancing an $800 million term loan. The refinancing extends our maturity profile and enhances our financial flexibility, positioning us well to continue executing our capital allocation priorities while maintaining our investment grade credit ratings.”

Third Quarter 2026 Segment Results
(Dollars in millions except per share data)

Sonoco reports its financial results in two reportable segments: Consumer Packaging (“Consumer”) and Industrial Paper Packaging (“Industrial”).

As previously announced, effective January 1, 2026, results of the Company’s industrial and specialty plastics business (“Industrial Plastics”), the only business remaining in the All Other group of businesses following the November 2025 divestiture of ThermoSafe, are now included in the Industrial segment. Therefore, the Company no longer provides results of the All Other group of businesses.

  Three Months Ended Nine Months Ended Consumer September
27, 2026 September
28, 2025Change September
27, 2026 September
28, 2025Change            Net sales1$1,396  $1,438 (2.9)% $3,735  $3,732 0.1% Segment operating profit1$179  $209 (14.6)% $456  $510 (10.6)% Segment operating profit margin1 12.8%  14.5%   12.2%  13.7%  Segment Adjusted EBITDA1, 2$237  $260 (8.8)% $620  $663 (6.4)% Segment Adjusted EBITDA margin1, 2 17.0%  18.0%   16.6%  17.8%  Consumer segment net sales were down (2.9)%, as adverse weather conditions impacted seasonal vegetable harvests in EMEA and Americas reducing metal cans volumes. This headwind more than offset pricing actions implemented to recover inflation and tariff-related costs, along with the negative impact of foreign exchange.Segment operating profit and adjusted EBITDA declined as strong productivity savings and cost containment actions were more than offset by inflation-driven price/cost headwinds and the previously described negative volume/mix.   Three Months Ended Nine Months Ended Industrial September
27, 2026 September
28, 2025Change September
27, 2026 September 28,
2025Change            Net sales3$646  $614 5.2% $1,869  $1,819 2.7% Segment operating profit3$88  $94 (6.2)% $247  $256 (3.7)% Segment operating profit margin 13.6%  15.3%   13.2%  14.1%  Segment Adjusted EBITDA2, 3 $122  $127 (4.6)% $344  $354 (2.9)% Segment Adjusted EBITDA margin2  18.8%  20.8%   18.4%  19.4%  Industrial segment net sales increased 5.2% to $646 million, primarily due to successful pricing actions implemented to help offset rising costs.Segment operating profit and adjusted EBITDA declined as pricing actions and productivity initiatives were more than offset by rising raw material, freight and energy costs. Operating margin remained resilient at 13.6%, compared with the second quarter but down from a record 2025 third quarter, while adjusted EBITDA margin was 18.8%. 1 Excludes results of discontinued operations.
2 Segment adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company’s reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.
3 Net sales, segment operating profit, and segment adjusted EBITDA for the three months ended September 28, 2025 include results from Industrial Plastics of $29 million, $4 million, and $5 million, respectively, previously included in All Other, to provide clearer year-over-year comparisons.

Balance Sheet and Cash Flow Highlights

The Company maintained strong liquidity of $1.3 billion at September 27, 2026, consisting of $1.1 billion of available borrowing capacity under its revolving credit facility and cash on hand.Cash and cash equivalents were $183 million as of September 27, 2026, compared to $378 million, as of December 31, 2025.Total debt and net debt were $4.3 billion and $4.1 billion, respectively, as of September 27, 2026, primarily reflecting seasonal working capital requirements within the Company's metal packaging business.Year-to-date cash flow from operating activities for the period ended September 27, 2026 provided $218 million, compared to $277 million in the same period of 2025. The main drivers of the year-over-year change in operating cash flow were a one-time payment of taxes in 2026 on the gains from the 2025 divestitures of the TFP and ThermoSafe businesses and the seasonal need for working capital for the Company’s metal packaging business.Capital expenditures, net of proceeds from sales of fixed assets, for 2026 were $175 million, compared to $248 million last year.Free Cash Flow for the period ended September 27, 2026 improved to $43 million compared to $29 million in the same period in 2025, reflecting the factors impacting operating cash flow discussed above.The Company returned $159 million to shareholders through dividends during the first nine months of 2026, compared to $156 million in the prior year period.On September 25, 2026, Sonoco amended a credit agreement, resulting in the addition of $800 million in new term loan facilities. The Company drew $500 million from the new facilities to refinance an existing $500 million term loan which was to mature in 2028. The Company retained $300 million in delayed-draw term loan capacity, which it can use within 12 months. Guidance(1)         

Revised Full-Year 2026

Net Sales: $7.20 billion to $7.40 billionAdjusted EPS(2): Targeting diluted earnings per share between $5.30 to $5.50Adjusted EBITDA(2): Targeting $1.20 billion to $1.25 billionCash flow from operating activities: Guidance adjusted to $600 million to $650 million, including the effect of payments of prior year taxes on gains from divestitures and restructuring costs Commenting on Sonoco’s outlook, Howard Coker said, “While our third-quarter performance fell short of our expectations, we are taking targeted actions through our Profitability Performance Plan to further reduce costs, improve productivity and address the impact of inflationary pressures. We believe these efforts will better position the Company when market conditions improve. We remain confident in our value-added packaging strategy, our market-leading portfolio of industrial and consumer assets, and the ability of our customer- and quality-focused employees to execute through economic cycles.”

Joachimczyk added, “In the fourth quarter of 2026, we expect continued strong performance from our Industrial segment, supported by continued robust URB demand in North America. We also anticipate more stable performance from our Consumer segment, driven by continued growth in international paper cans and a more balanced performance in aerosol and food can volumes. Finally, recovering raw material, freight, energy, and other operating costs remains a key priority as we close out 2026 and head into 2027.”

(1)Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company’s effective tax rate, as well as other risks and uncertainties, including those related to the integration of Eviosys and those described below, actual results could vary substantially. Further information can be found in the section entitled “Forward-looking Statements” in this release.

(2) Full year 2026 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company’s future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.        

About Sonoco
Sonoco (NYSE: SON) is a Mid-cap Value global packaging company. With sales of $7.5 billion from continuing operations in 2025, the Company has approximately 22,000 employees working in 265 operations in 37 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. A Fortune 500 company, Sonoco was proudly named one of the World’s Most Admired Companies by Fortune in 2026 as well as one of America’s Most Trustworthy and Responsible Companies by Newsweek and USA Today’s Climate Leaders in 2025. For more information on the Company, visit our website at www.sonoco.com. 

Forward-looking Statements

Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward- looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “achieve,” “anticipate,” “believe,” “can,” “continue,” “continuing,” “could,” “deliver,” “enhance,” “expect,” “forecast,” “focus,” “future,” “goal,” “guidance,” “improvement,” “likely,” “may,” “might,” “ongoing,” “outlook,” “plan,” “position,” “projected,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” “working,” or the negative thereof, and similar expressions identify forward-looking statements.

Forward-looking statements in this communication include statements regarding, but not limited to: the Company’s future operating and financial performance, including full year 2026 outlook and the anticipated drivers thereof and cash flow in 2026; the expected benefits of refinancing debt, including the Company’s ability to continue executing on its capital allocation priorities while maintaining its investment grade credit ratings; the Company’s ability to reduce costs, improve productivity and address the impact of inflationary pressures, including through its profitability performance plan, and the expected benefits thereof; the Company’s ability to execute through economic cycles, including as a result of its packaging strategy, its portfolio of industrial and consumer assets, and the ability of its customer- and quality-focused employees; the continued strong performance of the Company’s Industrial segment in the fourth quarter of 2026 and the anticipated drivers thereof; the performance of the Company’s Consumer segment and the anticipated drivers thereof; the continued focus on recovering raw material, freight, energy and other operating costs; and the effects of the changing macroeconomic and geopolitical environment, including trade policies and tariffs, market conditions, inflation and interest costs on the Company, its supply chain and its customers, and the Company’s ability to manage risks related thereto.

Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.

Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements.

Such risks, uncertainties and assumptions include, without limitation, those related to: the Company’s ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management’s attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; lower-than-projected financial performance of the Company’s European business, including as a result of loss or reduction in business from key customers, changes in our pricing model, or adverse changes in the macroeconomic or competitive environment in European markets; risks related to the impairment of goodwill and other intangibles; the operation of new manufacturing capabilities; the Company’s ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and in the Middle East, the potential escalation of tensions between China and Taiwan and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations; fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the impact of changing laws and regulations, in the United States, on the Company; the Company’s ability to meet its environmental, sustainability and similar goals and other social and governance goals, including challenges in implementation thereof; natural disasters, severe weather events, and other unexpected disruptions to facility operations; and the other risks, uncertainties and assumptions discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.

References to our Website Address

References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission’s rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.

Earnings Conference Call Webcast
Sonoco’s management will host a conference call to discuss its third quarter 2026 results on Thursday, October 22, 2026, at 8:00 a.m. Eastern Time. The Company will provide prepared remarks, a presentation and host a question-and-answer session during the call. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at https://investor.sonoco.com/. A webcast replay will be available on the Company’s website for at least 30 days following the call.

  Time:Thursday, October 22, 2026, at 8:00 a.m. Eastern Time
  AudienceTo listen via telephone, please register in advance at:Dial-In:https://events.q4inc.com/analyst/818434126?pwd=xd1mxKQr 
   After registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.  Webcast Link:https://events.q4inc.com/attendee/616781198  Contact Information: 
Roger Schrum
Head of Investor Relations and Communications
[email protected] 
843-339-6018

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(Dollars and shares in thousands except per share data)         Three Months Ended Nine Months Ended  September
27, 2026 September
28, 2025 September
27, 2026 September
28, 2025Net sales $2,041,575  $2,131,108  $5,603,502  $5,750,777 Cost of sales  1,636,255   1,663,757   4,460,177   4,523,462 Gross profit  405,320   467,351   1,143,325   1,227,315 Selling, general and administrative expenses  186,841   220,966   588,626   648,804 Restructuring/Asset impairment charges, net  856,435   48,388   873,501   71,721 (Loss)/Gain on divestiture of business  —   (3,031)  775   (9,297)Operating (loss)/profit  (637,956)  194,966   (318,027)  497,493 Non-operating pension costs  2,749   3,054   8,165   9,157 Interest expense  46,665   61,243   136,637   181,637 Interest income  5,223   4,634   17,938   16,104 Other expense, net  (8,271)  (7,541)  (26,770)  (20,617)(Loss)/Income from continuing operations before income taxes  (690,418)  127,762   (471,661)  302,186 Provision for income taxes  44,138   7,717   93,199   68,364 (Loss)/Income before equity in earnings of affiliates  (734,556)  120,045   (564,860)  233,822 Equity in earnings of affiliates, net of tax  2,689   3,020   5,642   7,211 Net (loss)/income from continuing operations  (731,867)  123,065   (559,218)  241,033 Net income from discontinued operations  —   —   —   429,720 Net (loss)/income  (731,867)  123,065   (559,218)  670,753 Net (income)/loss from continuing operations attributable to noncontrolling interests  (235)  (147)  (389)  17 Net (loss)/income attributable to Sonoco $(732,102) $122,918  $(559,607) $670,770          Weighted average common shares outstanding – diluted  99,502   99,648   99,432   99,519          Diluted (loss)/earnings from continuing operations per common share $(7.36) $1.23  $(5.63) $2.42 Diluted earnings from discontinued operations per common share  —   —   —   4.32 Diluted (loss)/earnings attributable to Sonoco per common share $(7.36) $1.23  $(5.63) $6.74 Dividends per common share $0.54  $0.53  $1.61  $1.58  CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited)(Dollars and shares in thousands except per share data)     Three Months
Ended Nine Months
Ended September
28, 2025 September
28, 2025    Net sales$— $320,678Cost of sales —  250,854Gross profit —  69,824Selling, general, and administrative expenses —  31,607Restructuring/Asset impairment charges, net —  426Gain on divestiture of business —  625,773Operating profit —  663,564Other expense, net —  182Interest expense —  24,911Interest income —  281Income from discontinued operations before income taxes —  638,752Provision for income taxes —  209,032Net income from discontinued operations —  429,720Net income from discontinued operations attributable to noncontrolling interests —  —Net income attributable to discontinued operations$— $429,720Weighted average common shares outstanding – diluted 99,648  99,519Diluted earnings from discontinued operations per common share$— $4.32 FINANCIAL SEGMENT INFORMATION (Unaudited)(Dollars in thousands)     Three Months Ended Nine Months Ended  September
27, 2026 September
28, 2025 September
27, 2026 September
28, 2025Net sales:        Consumer Packaging$1,396,012  $1,438,246  $3,734,926  $3,731,872  Industrial Paper Packaging 645,563   613,611   1,868,576   1,818,804  Total reportable segments 2,041,575   2,051,857   5,603,502   5,550,676  All Other —   79,251   —   200,101  Net sales$2,041,575  $2,131,108  $5,603,502  $5,750,777                  Operating profit:        Consumer Packaging$178,563  $208,985  $455,917  $510,109  Industrial Paper Packaging 87,973   93,773   246,598   256,038  Segment operating profit 266,536   302,758   702,515   766,147  All Other —   14,386   —   29,511  Corporate        Restructuring/Asset impairment charges, net (856,435)  (48,388)  (873,501)  (71,721) Amortization of acquisition intangibles (45,633)  (49,034)  (135,523)  (135,188) Gain/(Loss) on divestiture of business —   (3,031)  775   (9,297) Acquisition, integration, and divestiture-related costs (2,161)  (9,318)  (10,582)  (47,745) Other operating charges, net (263)  (12,407)  (1,711)  (34,214) Operating (loss)/profit$(637,956) $194,966  $(318,027) $497,493  2025 consolidated “net sales,” “operating profit,” and Consumer Packaging “segment operating profit” do not include results of the Company’s Thermoformed and Flexibles Packaging business and global Trident business (collectively, “TFP”), which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollars in thousands)   Nine Months Ended September 27,
2026 September 28,
2025    Net (loss)/income$(559,218) $670,753 Net loss/(gain) on divestiture of business, disposition of assets, and asset impairments 842,991   (601,304)Depreciation and amortization 390,982   382,623 Pension and postretirement plan contributions, net of non-cash expense (5,309)  (3,589)Changes in working capital (304,721)  (299,650)Changes in tax accounts (93,987)  127,412 Other operating activity (53,190)  651 Net cash provided by operating activities 217,548   276,896     Purchases of property, plant and equipment, net (174,905)  (248,251)Proceeds from the sale of business, net1 (13,076)  1,814,899 Cost of acquisitions, net of cash acquired2 —   16,528 Net debt repayments (50,598)  (1,938,409)Cash dividends (159,182)  (155,767)Payments for share repurchases (7,192)  (10,580)Other (outflow)/inflow, including effects of exchange rates on cash (7,892)  47,490 Net decrease in cash and cash equivalents (195,297)  (197,194)Cash and cash equivalents at beginning of period 378,398   443,060 Cash and cash equivalents at end of period$183,101  $245,866 12026 includes payments of $15,211 and $1,865 to the buyers of TFP and ThermoSafe, respectively, for final net working capital settlements on these 2025 divestitures.22025 includes a cash receipt of $16,528 for the final net working capital settlement related to the 2024 acquisition of Eviosys. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollars in thousands) September 27,
2026 December 31,
2025Assets   Current Assets:    Cash and cash equivalents$183,101 $378,398 Trade accounts receivable, net of allowances 1,117,958  842,810 Other receivables 152,736  178,755 Inventories, net 1,204,570  1,121,009 Prepaid expenses 149,661  125,352  Total Current Assets 2,808,026  2,646,324Property, plant and equipment, net 2,658,234  2,797,800Goodwill 1,646,258  2,511,611Other intangible assets, net 2,485,874  2,683,474Right of use asset-operating leases 307,740  307,450Deferred income taxes and other assets 228,809  215,675  Total Assets$10,134,941 $11,162,334Liabilities and Equity   Current Liabilities:    Payable to suppliers, accrued expenses and other payables$1,803,816 $1,861,904 Notes payable and current portion of long-term debt 510,041  537,952 Accrued taxes 69,218  128,821  Total Current Liabilities 2,383,075  2,528,677Long-term debt, net of current portion 3,781,625  3,788,973Noncurrent operating lease liabilities 263,779  263,192Pension and other postretirement benefits 166,115  177,976Deferred income taxes and other liabilities 721,084  771,684  Total Liabilities 7,315,678  7,530,502  Total Equity 2,819,263  3,631,832  Total Liabilities and Equity$10,134,941 $11,162,334 NON-GAAP FINANCIAL MEASURES

The Company’s results, determined in accordance with U.S. generally accepted accounting principles, are referred to as “as reported” or “GAAP” results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP (referred to as “non-GAAP financial measures”) to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term “Adjusted” (for example, “Adjusted Operating Profit,” “Adjusted Net Income Attributable to Sonoco,” and “Adjusted Diluted EPS”), reflect adjustments to the Company’s GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to:

restructuring/asset impairment charges1;acquisition, integration and divestiture-related costs;gains or losses from the divestiture of businesses;losses from the early extinguishment of debt;non-operating pension costs;amortization expense on acquisition intangibles;changes in last-in, first-out (“LIFO”) inventory reserves;certain income tax events and adjustments;derivative gains/losses;other non-operating income and losses; andcertain other items, if any.
1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company’s restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.

The Company’s management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.

In addition to the “Adjusted” results described above, the Company also uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, and Net Debt. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Segment Adjusted EBITDA is defined as segment operating profit plus depreciation and amortization expense and equity in earnings of affiliates, net of tax. Segment Adjusted EBITDA Margin is defined as Segment Adjusted EBITDA divided by segment net sales. Net Debt is defined as the total of the Company’s short and long-term debt less cash and cash equivalents.

Segment Adjusted EBITDA is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.

Segment results, which are reviewed by the Company’s management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments, except for costs related to discontinued operations.

The Company’s non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles.

The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.

Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.

To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company’s results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure.

References to 2025 consolidated “adjusted operating profit” and “segment adjusted EBITDA” in the following tables do not include results of TFP, which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.

QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the three-month periods ended September 27, 2026 and September 28, 2025.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

 For the three-month period ended September 27, 2026Dollars in thousands, except per share dataOperating
(Loss)/Profit (Loss)/Income
from
Continuing
Operations
Before Income
TaxesProvision
for Income
Taxes Net
(Loss)/Income
Attributable
to SonocoDiluted
EPSAs Reported (GAAP)$(637,956)$(690,418)$44,138 $(732,102)$(7.36)Acquisition, integration and divestiture-related costs1 2,161  2,161  318  1,843  0.01 Amortization of acquisition intangibles 45,633  45,633  9,938  35,695  0.36 Restructuring/Asset impairment charges, net2 856,435  856,435  6,839  849,694  8.54 Non-operating pension costs —  2,749  712  2,037  0.02 Net gains from derivatives (106) (106) (26) (80) — Other adjustments3 1,874  1,874  (8,237) 10,111  0.10 Total adjustments 905,997  908,746  9,544  899,300  9.03 Adjusted$268,041 $218,328 $53,682 $167,198 $1.67 Due to rounding, individual items may not sum appropriately.    1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys.
2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively.
3 Other adjustments include discrete tax items primarily related to provision-to-return adjustments for the TFP and ThermoSafe divestitures and a retroactive U.S. tax election.

 For the three-month period ended September 28, 2025Dollars in thousands, except per share dataOperating
ProfitIncome from
Continuing
Operations
Before Income
TaxesProvision
for Income
TaxesNet Income
Attributable
to SonocoDiluted
EPSAs Reported (GAAP)$194,966$127,762$7,717 $122,918 $1.23 Acquisition, integration and divestiture-related costs1 9,318 9,318 2,377  6,941  0.07 Amortization of acquisition intangibles 49,034 49,034 10,581  38,453  0.39 Restructuring/Asset impairment charges, net 48,388 48,388 11,117  37,221  0.37 Loss/(Gain) on divestiture of business2 3,031 3,031 27,569  (24,538) (0.25)Non-operating pension costs — 3,054 631  2,423  0.02 Net losses from derivatives 2,035 2,035 502  1,533  0.02 Other adjustments3 1,568 1,568 (4,652) 6,220  0.07 Total adjustments 113,374 116,428 48,125  68,253  0.69 Adjusted$308,340$244,190$55,842 $191,171 $1.92 Due to rounding, individual items may not sum appropriately.    1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.
2 Loss/(Gain) on divestiture of business includes the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.
3 Other adjustments include an adjustment to deferred taxes from the post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.

Adjusted EBITDA1   Three Months EndedDollars in thousandsSeptember 27,
2026September 28,
2025Net (loss)/income attributable to Sonoco$(732,102)$122,918 Adjustments:  Interest expense 46,665  61,243 Interest income (5,223) (4,634)Provision for income taxes 44,138  7,717 Depreciation and amortization 134,857  131,656 Non-operating pension costs 2,749  3,054 Net income attributable to noncontrolling interests 235  147 Restructuring/Asset impairment charges, net 856,435  48,388 Loss on divestiture of business —  3,031 Acquisition, integration and divestiture-related costs 2,161  9,318 Net (gain)/loss from derivatives (106) 2,035 Other non-GAAP adjustments 1,874  1,568 Adjusted EBITDA$351,683 $386,441  1 For the three-month period ended September 28, 2025, adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

Segment Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Three Months Ended September 27, 2026        Dollars in thousandsConsumerIndustrialCorporateTotalSegment and Total Operating Profit/(Loss)1$178,563 $87,973 $(904,492)$(637,956)Adjustments:    Depreciation and amortization2 58,048  31,176  45,633  134,857 Other expense, net3 —  —  (8,271) (8,271)Equity in earnings of affiliates, net of tax 217  2,472  —  2,689 Restructuring/Asset impairment charges, net4 —  —  856,435  856,435 Acquisition, integration and divestiture-related costs5 —  —  2,161  2,161 Net gain from derivatives6 —  —  (106) (106)Other non-GAAP adjustments —  —  1,874  1,874 Segment Adjusted EBITDA$236,828 $121,621 $(6,766)$351,683      Net Sales$1,396,012 $645,563   Segment Operating Profit Margin 12.8% 13.6%  Segment Adjusted EBITDA Margin 17.0% 18.8%   1As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $40,576 and the Industrial segment of $5,057.
3These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
4Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $835,670 and the Industrial segment of $20,196.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $433 and the Industrial segment of $7.
6Included in Corporate are net gains from derivatives associated with the Consumer segment of $3 and the Industrial segment of $(109).

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Three Months Ended September 28, 2025Excludes results of discontinued operations     Dollars in thousandsConsumerIndustrialAll OtherCorporateTotalSegment and Total Operating Profit$208,985 $93,773 $14,386 $(122,178)$194,966 Adjustments:     Depreciation and amortization1 50,419  30,896  1,307  49,034  131,656 Other expense, net2 —  —  —  (7,541) (7,541)Equity in earnings of affiliates, net of tax 190  2,830  —  —  3,020 Restructuring/Asset impairment charges, net3 —  —  —  48,388  48,388 Acquisition, integration and divestiture-related costs4 —  —  —  9,318  9,318 Loss on divestiture of business5 —  —  —  3,031  3,031 Net loss from derivatives6 —  —  —  2,035  2,035 Other non-GAAP adjustments —  —  —  1,568  1,568 Segment Adjusted EBITDA$259,594 $127,499 $15,693 $(16,345)$386,441       Net Sales$1,438,246 $613,611 $79,251   Segment Operating Profit Margin 14.5% 15.3% 18.2%  Segment Adjusted EBITDA Margin 18.0% 20.8% 19.8%   1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $43,397, the Industrial segment of $5,485, and the All Other group of businesses of $152.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $35,027 and the Industrial segment of $11,181.
4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $1,293 and the Industrial segment of $97.
5Included in Corporate is a loss on divestiture of business of $31 associated with the Industrial segment related to the sale of a recycling operation in Asheville, North Carolina, and a $3,000 charge related to the divestiture of ThermoSafe, previously part of the All Other group of businesses.
6Included in Corporate are net losses from derivatives associated with the Consumer segment of $196, the Industrial segment of $1,760, and the All Other group of businesses of $79.

YEAR-TO-DATE RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the nine-month periods ended September 27, 2026 and September 28, 2025.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

 For the nine-month period ended September 27, 2026Dollars in thousands, except per share dataOperating
(Loss)/Profit(Loss)/Income
from
Continuing
Operations
Before Income
TaxesProvision
for Income
TaxesNet
(Loss)/Income
Attributable
to SonocoDiluted
EPSAs Reported (GAAP)$(318,027)$(471,661)$93,199 $(559,607)$(5.63)Acquisition, integration and divestiture-related costs1 10,582  10,582  1,665  8,917  0.09 Changes in LIFO inventory reserves 5,521  5,521  1,367  4,154  0.04 Amortization of acquisition intangibles 135,523  135,523  29,738  105,785  1.06 Restructuring/Asset impairment charges, net2 873,501  873,501  10,344  863,267  8.68 Gain on divestiture of business, net3 (775) (775) (188) (587) (0.01)Other expense, net4 —  6,592  —  6,592  0.07 Non-operating pension costs —  8,165  2,106  6,059  0.06 Net losses from derivatives 61  61  15  46  — Other adjustments 4,901  4,901  2,450  2,451  0.02 Total adjustments 1,029,314  1,044,071  47,497  996,684  10.01 Adjusted$711,287 $572,410 $140,696 $437,077 $4.38 Due to rounding, individual items may not sum appropriately.    1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the November 2025 divestiture of ThermoSafe.
2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively.
3 Gain on divestiture of business, net reflects the gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, partially offset by a charge of $1,865 from the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.
4 Amount relates to certain pre-acquisition liabilities related to the Sonoco Metal Packaging EMEA business.

 For the nine-month period ended September 28, 2025Dollars in thousands, except per share dataOperating
ProfitIncome
from
Continuing
Operations
Before Income
TaxesProvision
for Income
TaxesNet
Income
Attributable
to SonocoDiluted
EPSAs Reported (GAAP)1$497,493$302,186$68,364 $670,770 $6.74 Acquisition, integration and divestiture-related costs2 47,745 47,745 11,134  46,277  0.47 Changes in LIFO inventory reserves 1,755 1,755 433  1,322  0.01 Amortization of acquisition intangibles 135,188 135,188 29,586  105,389  1.06 Restructuring/Asset impairment charges, net 71,721 71,721 16,514  55,109  0.55 Loss/(Gain) on divestiture of business3 9,297 9,297 28,455  (443,706) (4.46)Non-operating pension costs — 9,157 2,190  6,967  0.07 Net losses from derivatives 1,240 1,240 306  934  0.01 Other adjustments4 3,562 3,562 (14,456) 21,064  0.21 Total adjustments 270,508 279,665 74,162  (206,644) (2.08)Adjusted$768,001$581,851$142,526 $464,126 $4.66 Due to rounding, individual items may not sum appropriately.    1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $663,564, $638,752, and $209,032, respectively.
2 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.
3 Loss/(Gain) on divestiture of business primarily consists of the gain on the sale of TFP, included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income, and the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.
4 Other adjustments include discrete tax items primarily related to tax rate changes, an adjustment to deferred taxes from post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.

Adjusted EBITDA1   Nine Months EndedDollars in thousandsSeptember 27,
2026September 28,
2025   Net (loss)/income attributable to Sonoco$(559,607)$670,770 Adjustments:  Interest expense 136,637  206,548 Interest income (17,938) (16,385)Provision for income taxes 93,199  277,396 Depreciation and amortization 390,982  382,623 Non-operating pension costs 8,165  9,157 Non-operating other expense 6,592  — Net income/(loss) attributable to noncontrolling interests 389  (17)Restructuring/Asset impairment charges, net 873,501  72,147 Changes in LIFO inventory reserves 5,521  1,755 Gain on divestiture of business (775) (616,476)Acquisition, integration and divestiture-related costs 10,582  60,421 Net loss from derivatives 61  1,240 Other non-GAAP adjustments 4,901  2,949 Adjusted EBITDA$952,210 $1,052,128    Net Sales$5,603,502 $5,750,777 Net sales related to discontinued operations$— $320,678  1For the nine-month period ended September 28, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to segment adjusted EBITDA.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Nine Months Ended September 27, 2026Excludes results of discontinued operationsDollars in thousandsConsumer Industrial CorporateTotalSegment and Total Operating Profit/(Loss)1$455,917 $246,598 $(1,020,542)$(318,027)Adjustments:    Depreciation and amortization2 163,673  91,786  135,523  390,982 Other expense, net3 —  —  (20,178) (20,178)Equity in earnings of affiliates, net of tax 491  5,151  —  5,642 Restructuring/Asset impairment charges, net4 —  —  873,501  873,501 Changes in LIFO inventory reserves5 —  —  5,521  5,521 Acquisition, integration and divestiture-related costs6 —  —  10,582  10,582 Gain on divestiture of business7 —  —  (775) (775)Net loss from derivatives8 —  —  61  61 Other non-GAAP adjustments —  —  4,901  4,901 Segment Adjusted EBITDA$620,081 $343,535 $(11,406)$952,210      Net Sales$3,734,926 $1,868,576   Segment Operating Profit Margin 12.2% 13.2%  Segment Adjusted EBITDA Margin 16.6% 18.4%   1 As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $120,451 and the Industrial segment of $15,072.
3 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within the Consumer segment.
4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $844,607 and the Industrial segment of $27,392.
5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $4,996 and the Industrial segment of $525.
6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $3,707 and the Industrial segment of $159.
7 Included in Corporate is a gain of $2,640 from the sale of a recycling facility in Savannah, Georgia, part of the Industrial segment, partially offset by a charge of $1,865 from the final net working capital settlement related to the divestiture of ThermoSafe, previously part of the All Other group of businesses.
8 Included in Corporate are net losses from derivatives associated with the Consumer segment of $7 and the Industrial segment of $54.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Nine Months Ended September 28, 2025Excludes results of discontinued operationsDollars in thousandsConsumer Industrial All OtherCorporateTotalSegment and Total Operating Profit$510,109 $256,038 $29,511 $(298,165)$497,493 Adjustments:     Depreciation and amortization1 152,175  90,764  4,807  135,188  382,934 Other expense, net2 —  —  —  (20,617) (20,617)Equity in earnings of affiliates, net of tax 309  6,902  —  —  7,211 Restructuring/Asset impairment charges, net3 —  —  —  71,721  71,721 Changes in LIFO inventory reserves4 —  —  —  1,755  1,755 Acquisition, integration and divestiture-related costs5 —  —  —  47,745  47,745 Loss on divestiture of business6 —  —  —  9,297  9,297 Net loss from derivatives7 —  —  —  1,240  1,240 Other non-GAAP adjustments —  —  —  3,562  3,562 Segment Adjusted EBITDA$662,593 $353,704 $34,318 $(48,274)$1,002,341       Net Sales$3,731,872 $1,818,804 $200,101   Segment Operating Profit Margin 13.7% 14.1% 14.7%  Segment Adjusted EBITDA Margin 17.8% 19.4% 17.2%   1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $118,232, the Industrial segment of $16,405, and All Other of $551.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $37,736, the Industrial segment of $31,907, and All Other of $10.
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,755.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $22,502 and the Industrial segment of $528.
6Included in Corporate are net losses from the divestiture of businesses within the Industrial segment of $6,297, including a loss of $2,114 from the sale of a recycling facility in Asheville, N.C. and losses totaling $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.
7Included in Corporate are net gains from derivatives associated with the Consumer segment of $120, the Industrial segment of $1,072, and All Other of $48.

FREE CASH FLOW

The Company uses the non-GAAP financial measure of “Free Cash Flow,” which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations.

The reconciliation of the GAAP measure “Net cash provided by operating activities” to the non-GAAP measure “Free Cash Flow” is set forth in the table below:

 Nine Months Ended September 27,
2026 September 28,
2025    Net cash provided by operating activities$217,548  $276,896 Purchases of property, plant and equipment (188,664)  (253,411)Proceeds from the sale of assets, net 13,759   5,160 Net capital expenditures (174,905)  (248,251)Free cash flow$42,643  $28,645      NET DEBT

The reconciliation of the GAAP measure “Total Debt” to the non-GAAP measure of “Net Debt” is set forth in the table below:

 September 27,
2026    Total Debt$4,291,666 Less: Cash and cash equivalents 183,101 Net Debt$4,108,565  This press release was published by a CLEAR® Verified individual.

Financial and Operating Highlights

Net income attributable to common stockholders of $1.01 per share for the third quarter of 2026 as compared to net income of $0.34 per share for the same period in 2025.Funds from operations ("FFO") of $1.59 per share for the third quarter of 2026 as compared to FFO of $1.58 per share for the same period in 2025.The Company is increasing its previously announced 2026 FFO guidance range for the year ending December 31, 2026 from $5.60-$5.90 per share to $6.50-$6.70 per share, which reflects $1.10 per share of incremental income from the sale of a 20% joint venture interest in an entity related to the Company's food and beverage hospitality operations, offset by $0.25 per share attributable to the higher interest rate environment. The Company is also increasing its previously announced 2026 net income guidance range from $0.20-$0.50 per share to $0.40-$0.60 per share. Signed 38 Manhattan office leases totaling 591,108 square feet in the third quarter of 2026 and 142 Manhattan office leases totaling 1,965,533 square feet for the first nine months of 2026. The mark-to-market on signed Manhattan office leases was 13.6% higher for the third quarter and 15.7% higher for the first nine months than the previous fully escalated rents on the same spaces.Manhattan same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, increased 5.0% for the third quarter of 2026 and 4.2% for the first nine months of 2026, excluding lease termination income, as compared to the same periods in 2025.Manhattan same-store office occupancy increased to 95.0% as of September 30, 2026, inclusive of leases signed but not yet commenced. Investing Highlights

Entered into a contract to sell 110 Greene Street for total consideration of $226.0 million. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, and generate approximately $216.0 million of net cash proceeds.Closed on the previously announced sale of 10 East 53rd Street for total consideration of $312.2 million. The Company received net cash proceeds of $99.0 million.Deployed $100.7 million of the $1.3 billion SLG Opportunistic Debt Fund (the "Fund") during the third quarter and $359.0 million to date in 2026, bringing total Fund deployment to $643.1 million, of which $528.8 million has been funded, and $18.9 million of which has since been repaid.In October, closed on the sale of a 20% joint venture interest in an entity related to the Company's food and beverage hospitality operations at a gross valuation of $200.0 million. The transaction generated proceeds to the Company of $40.0 million.In October, closed on the sale of the 26,000 square foot office condominium at 185 Broadway for $9.0 million. The Company received net cash proceeds of $8.7 million.     Financing Highlights

In October, together with our joint venture partner, closed on a $2.0 billion refinancing of 245 Park Avenue. The five-year, fixed-rate financing was priced at a spread of 147 basis points above the U.S. Treasury index, resulting in an interest rate of 6.52%. SL Green hedged its share of the financing to an effective interest rate of 6.37%. NEW YORK, Oct. 21, 2026 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported net income attributable to common stockholders for the quarter ended September 30, 2026 of $72.2 million, or $1.01 per share, as compared to net income of $24.9 million, or $0.34 per share, for the same period in 2025.

The Company reported net loss attributable to common stockholders for the nine months ended September 30, 2026 of $38.7 million, or $0.56 per share, as compared to net loss of $7.3 million, or $0.12 per share, for the same period in 2025.

The Company reported FFO for the quarter ended September 30, 2026 of $122.1 million, or $1.59 per share, as compared to FFO of $120.4 million, or $1.58 per share, for the same period in 2025.

The Company reported FFO for the nine months ended September 30, 2026 of $296.3 million or $3.85 per share as compared to FFO of $351.4 million, or $4.60 per share, for the same period in 2025, which included $71.6 million, or $0.94 per share, of income, excluding interest income, related to the repayment of the commercial mortgage investment at 522 Fifth Avenue.

All per share amounts are presented on a diluted basis.

Operating and Leasing Activity

Manhattan same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, increased by 5.0% for the third quarter of 2026 and 4.2% for the first nine months of 2026, excluding lease termination income, as compared to the same periods in 2025.

During the third quarter of 2026, the Company signed 38 office leases in its Manhattan office portfolio totaling 591,108 square feet. The average rent on the Manhattan office leases signed in the third quarter of 2026 was $105.75 per rentable square foot, with an average lease term of 10.7 years and average tenant concessions of 8.2 months of free rent with a tenant improvement allowance of $85.20 per rentable square foot. Twenty-eight leases comprising 449,076 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $110.88 per rentable square foot, representing a 13.6% increase over the previous fully escalated rents on the same office spaces.

During the nine months ended September 30, 2026, the Company signed 142 office leases in its Manhattan office portfolio totaling 1,965,533 square feet. The average rent on the Manhattan office leases signed in 2026 was $102.61 per rentable square foot with an average lease term of 9.1 years and average tenant concessions of 8.6 months of free rent with a tenant improvement allowance of $89.88 per rentable square foot. Ninety-four leases comprising 1,424,546 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $109.99 per rentable square foot, representing a 15.7% increase over the previous fully escalated rents on the same office spaces.

Occupancy in the Company's Manhattan same-store office portfolio increased to 95.0% as of September 30, 2026, inclusive of leases signed but not yet commenced, as compared to 92.9% at the end of 2025.

Significant leasing activity in the third quarter includes:

New lease with Legora, Inc. for 98,420 square feet at 11 Madison Avenue;Early renewal with IMG Worldwide LLC for 90,202 square feet at 304 Park Avenue South;New lease with Landesbank Baden-Württemberg for 58,332 square feet at 1185 Avenue of the Americas;New lease with Nearwater Management, LLC for 37,563 square feet at 245 Park Avenue;New expansion lease with Greenberg Traurig LLP for 33,477 square feet at One Vanderbilt Avenue;New lease with OceanSound Partners, LP for 32,032 square feet at 450 Park Avenue;Early renewal with Haworth, Inc. for 30,365 square feet at 125 Park Avenue. Earnings Guidance

The Company is increasing its previously announced 2026 FFO guidance range for the year ending December 31, 2026 from $5.60-$5.90 per share to $6.50-$6.70 per share, which reflects $1.10 per share of incremental income from the sale of a 20% joint venture interest in an entity related to the Company's food and beverage hospitality operations, offset by $0.25 per share attributable to the higher interest rate environment. The Company is also increasing its previously announced 2026 net income guidance range from $0.20-$0.50 per share to $0.40-$0.60 per share.

Investment Activity

In September, the Company entered into a contract to sell 110 Greene Street for total consideration of $226.0 million. The transaction, which is expected to close in the fourth quarter of 2026, subject to customary closing conditions, will generate net cash proceeds to the Company of approximately $216.0 million that will be used for corporate debt repayment.

In August, the Company closed on the previously announced sale of 10 East 53rd Street for total consideration of $312.2 million. The Company received net cash proceeds of $99.0 million.

During the third quarter, the Company deployed $100.7 million of the $1.3 billion Fund and $359.0 million to date in 2026, bringing total Fund deployment to $643.1 million, of which $528.8 million has been funded, and $18.9 million of which has since been repaid.

In October, the Company closed on the sale of a 20% joint venture interest in an entity related to the Company's food and beverage hospitality operations, at a gross valuation of $200.0 million. The transaction generated proceeds to the Company of $40.0 million.

In October, the Company closed on the sale of the 26,000 square foot office condominium at 185 Broadway for $9.0 million. The Company received net cash proceeds of $8.7 million.

Financing Activity

In October, the Company and its joint venture partner closed on a $2.0 billion refinancing of 245 Park Avenue. The five-year, fixed-rate financing was priced at a spread of 147 basis points above the U.S Treasury index, resulting in an interest rate of 6.52%. SL Green hedged its share of the financing to an effective interest rate of 6.37%. The single-asset, single-borrower (SASB) CMBS execution was agented by world-class institutions led by JPMorgan Chase Bank, N.A., with participation from Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Société Générale and Citibank. The new financing replaces the property's previous $1.768 billion of mortgage and mezzanine financing.

Institutional Investor Conference

The Company will host its Annual Institutional Investor Conference on Monday, December 7, 2026 beginning at 9:00 a.m. ET. The event will be held in-person, by invitation only. The presentation will be available online via audio webcast, in listen-only mode, and the accompanying presentation materials can be accessed in the Investors section of the SL Green Realty Corp. website at www.slgreen.com on the day of the conference. An audio replay of the presentation will be available in the Investors section of the SL Green Realty Corp. website following the conference.

For more information about the event, please email [email protected]. 

Dividends

In the third quarter of 2026, the Company declared:

A quarterly ordinary dividend on its outstanding common stock of $0.6175 per share, which was paid in cash on October 15, 2026, and is the equivalent of an annualized dividend of $2.47 per share;A quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period July 15, 2026 through and including October 14, 2026, which was paid in cash on October 15, 2026, and is the equivalent of an annualized dividend of $1.625 per share. Conference Call and Audio Webcast

The Company's executive management team, led by Marc Holliday, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, October 22, 2026, at 2:00 p.m. ET to discuss the financial results.

Supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Financial Reports.”

The live conference call will be webcast in listen-only mode and a replay will be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Presentations & Webcasts.”

Research analysts who wish to participate in the conference call must first register at https://register-conf.media-server.com/register/BI6e8d3796e9b044fbb7f0dca147720564.

Company Profile

SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of September 30, 2026, SL Green held interests in 53 buildings totaling 30.3 million square feet, which included ownership interests in 28.9 million square feet and 1.4 million square feet securing debt and preferred equity investments, excluding fund investments, and managed 5 buildings totaling 1.3 million square feet owned by third parties.

To obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at [email protected]. 

Disclaimers

Non-GAAP Financial Measures
During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found in this release and in the Company’s Supplemental Package.

Forward-looking Statements
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as our earnings guidance, future capital expenditures, dividends, acquisitions and dispositions (including the amount and nature thereof and the expected timing, closing and use of proceeds of pending dispositions), financing and refinancing transactions and hedging activities, development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," “target,” “plan,” “guidance,” “outlook,” or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
[email protected]  

SL GREEN REALTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
     Three Months Ended Nine Months Ended September 30, September 30,Revenues:
 2026   2025   2026   2025        Rental revenue, net$165,552  $149,672  $503,393  $441,725 Escalation and reimbursement revenues 20,381   18,864   61,298   55,067 SUMMIT Operator revenue 34,655   32,883   90,306   86,424 Investment income 2,615   4,356   7,618   26,809 Interest income from real estate loans held by consolidated securitization vehicles 14,687   10,838   44,079   47,868 Fee income 30,596   23,296   70,037   47,787 Other income 4,539   4,908   13,375   20,899 Total revenues 273,025   244,817   790,106   726,579 Expenses:       Operating expenses, including related party expenses of $0 and $6 in 2026 and $6 and $9 in 2025 58,700   57,673   180,407   164,840 Real estate taxes 42,190   37,627   126,537   112,594 Operating lease rent 6,898   6,106   20,740   18,317 SUMMIT Operator expenses 42,936   35,959   93,398   82,570 Interest expense, net of interest income 50,026   47,235   154,946   138,234 Amortization of deferred financing costs 2,480   1,724   7,438   5,153 SUMMIT Operator tax expense 616   1,279   2,424   2,781 Interest expense on senior obligations of consolidated securitization vehicles 14,687   10,838   44,079   45,827 Depreciation and amortization 63,629   63,216   200,659   187,874 Loan loss and other investment reserves, net of recoveries —   —   —   (71,326)Transaction related costs 228   13,129   529   13,601 Marketing, general and administrative 23,253   23,701   68,820   67,004 Total expenses 305,643   298,487   899,977   767,469         Equity in net income (loss) from unconsolidated joint ventures 26,692   (9,287)  20,860   (30,892)Income from debt fund investments, net 2,166   1,176   10,634   1,776 Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate —   86,872   (814)  84,926 Purchase price and other fair value adjustments 4,261   11,138   14,106   (8,090)Gain (loss) on sale of real estate, net 91,445   (1,068)  103,902   (1,717)Depreciable real estate reserves (2,275)  —   (37,435)  (8,546)Gain on sale of marketable securities —   —   —   10,232 Net income 89,671   35,161   1,382   6,799 Net income (loss) attributable to noncontrolling interests:       Noncontrolling interests in the Operating Partnership (5,797)  (1,737)  3,036   503 Noncontrolling interests in other partnerships (5,688)  (2,658)  (25,194)  3,079 Preferred units distributions (2,256)  (2,154)  (6,713)  (6,461)Net income (loss) attributable to SL Green 75,930   28,612   (27,489)  3,920 Perpetual preferred stock dividends (3,738)  (3,738)  (11,213)  (11,213)Net income (loss) attributable to SL Green common stockholders$72,192  $24,874  $(38,702) $(7,293)Earnings Per Share (EPS)       Basic earnings (loss) per share$1.01  $0.35  $(0.56) $(0.12)Diluted earnings (loss) per share$1.01  $0.34  $(0.56) $(0.12)        Funds From Operations (FFO)       Basic FFO per share$1.63  $1.62  $3.93  $4.72 Diluted FFO per share$1.59  $1.58  $3.85  $4.60         Basic ownership interest       Weighted average REIT common shares for net income per share 70,441   70,443   70,598   70,435 Weighted average partnership units held by noncontrolling interests 4,610   3,875   4,814   3,998 Basic weighted average shares and units outstanding  75,051   74,318   75,412   74,433         Diluted ownership interest       Weighted average REIT common share and common share equivalents 71,967   72,553   72,189   72,442 Weighted average partnership units held by noncontrolling interests 4,610   3,875   4,814   3,998 Diluted weighted average shares and units outstanding  76,577   76,428   77,003   76,440          SL GREEN REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands, except per share data)
     September 30, December 31,  2026   2025 Assets   Commercial real estate properties, at cost:   Land and land interests$1,534,127  $1,699,215 Building and improvements 4,068,129   4,012,305 Building leasehold and improvements 1,496,428   1,448,112   7,098,684   7,159,632 Less: accumulated depreciation (2,333,095)  (2,306,377)  4,765,589   4,853,255 Assets held for sale 224,249   — Cash and cash equivalents 186,439   155,747 Restricted cash 199,507   180,748 Investment in marketable securities 21,166   23,666 Tenant and other receivables 64,072   45,524 Related party receivables 17,195   16,293 Deferred rents receivable 255,497   266,678 Debt and preferred equity investments, net of discounts and deferred origination fees of $2 and $14 in 2026 and 2025, respectively, and allowances of $300 and $454 in 2026 and 2025, respectively 113,087   168,358 Investments in unconsolidated joint ventures 2,886,984   2,819,778 Debt fund investments, at fair value 434,219   152,958 Deferred costs, net 121,668   129,019 Right-of-use assets - operating leases 940,495   864,430 Real estate loans held by consolidated securitization vehicles, at fair value 1,003,918   1,023,877 Other assets 551,576   577,299  Total assets$11,785,661  $11,277,630     Liabilities   Mortgages and other loans payable$2,216,799  $2,154,499 Revolving credit facility 930,000   640,000 Unsecured term loan 1,150,000   1,150,000 Deferred financing costs, net (29,965)  (13,063)Total debt, net of deferred financing costs 4,266,834   3,931,436 Accrued interest payable 17,016   15,221 Accounts payable and accrued expenses 142,846   134,621 Deferred revenue 158,252   147,419 Lease liability - financing leases 109,182   108,183 Lease liability - operating leases 886,515   805,192 Dividend and distributions payable 48,910   2,536 Security deposits 66,859   68,276 Liabilities related to assets held for sale 866   — Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities 100,000   100,000 Senior obligations of consolidated securitization vehicles, at fair value 1,003,918   1,023,877 Other liabilities (includes $166,736 and $244,941 at fair value as of September 30, 2026 and December 31, 2025, respectively) 513,358   587,779  Total liabilities 7,314,556   6,924,540     Commitments and contingencies   Noncontrolling interests in Operating Partnership 273,718   241,371 Preferred units and redeemable equity 203,508   199,271     Equity   SL Green stockholders' equity:   Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 and 9,200 issued and outstanding at both September 30, 2026 and December 31, 2025 221,932   221,932 Common stock, $0.01 par value 160,000 shares authorized, 70,945 and 71,159 issued and outstanding at September 30, 2026 and December 31, 2025, respectively 708   711 Additional paid-in capital 4,213,109   4,212,590 Accumulated other comprehensive income (loss) 28,201   (22,198)Retained deficit (964,016)  (741,880)Total SL Green Realty Corp. stockholders’ equity 3,499,934   3,671,155 Noncontrolling interests in other partnerships 493,945   241,293  Total equity 3,993,879   3,912,448 Total liabilities and equity$11,785,661  $11,277,630          SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
     Three Months Ended Nine Months Ended September 30, September 30,Funds From Operations (FFO) Reconciliation: 2026   2025   2026   2025         Net income (loss) attributable to SL Green common stockholders$72,192  $24,874  $(38,702) $(7,293)Add:       Depreciation and amortization 63,629   63,216   200,659   187,874 SLG's share of unconsolidated joint ventures depreciation and amortization 72,964   127,170   217,701   247,874 Net income (loss) attributable to noncontrolling interests 11,485   4,395   22,158   (3,582)Less:       Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate —   86,872   (814)  84,926 Purchase price and other fair value adjustments 477   9,652   7,953   (5,291)Gain (loss) on sale of real estate, net 91,445   (1,068)  103,902   (1,717)Depreciable real estate reserves (2,275)  —   (37,435)  (8,546)Depreciable real estate reserves in unconsolidated joint venture —   —   —   (1,780)Depreciation on non-rental real estate assets 1,478   1,628   4,483   4,312 Noncontrolling interests in consolidated joint ventures 7,071   2,186   27,451   1,526 FFO attributable to SL Green common stockholders and unit holders$122,074  $120,385  $296,276  $351,443          SL GREEN REALTY CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited and in thousands, except per share data)
     Three Months Ended Nine Months Ended September 30, September 30,Operating income and Same-store NOI Reconciliation: 2026   2025   2026   2025         Net income$89,671  $35,161  $1,382  $6,799         Depreciable real estate reserves 2,275   —   37,435   8,546 (Gain) Loss on sale of real estate, net (91,445)  1,068   (103,902)  1,717 Purchase price and other fair value adjustments (4,261)  (11,138)  (14,106)  8,090 Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate —   (86,872)  814   (84,926)Gain on sale of marketable securities —   —   —   (10,232)Depreciation and amortization 63,629   63,216   200,659   187,874 SUMMIT Operator tax expense 616   1,279   2,424   2,781 Amortization of deferred financing costs 2,480   1,724   7,438   5,153 Interest expense, net of interest income 50,026   47,235   154,946   138,234 Interest expense on senior obligations of consolidated securitization vehicles 14,687   10,838   44,079   45,827 Operating income 127,678   62,511   331,169   309,863         Equity in net (income) loss from unconsolidated joint ventures (26,692)  9,287   (20,860)  30,892 Income from debt fund investments, net (2,166)  (1,176)  (10,634)  (1,776)Marketing, general and administrative expense 23,253   23,701   68,820   67,004 Transaction related costs 228   13,129   529   13,601 Loan loss and other investment reserves, net of recoveries —   —   —   (71,326)SUMMIT Operator expenses 42,936   35,959   93,398   82,570 Investment income (2,615)  (4,356)  (7,618)  (26,809)Interest income from real estate loans held by consolidated securitization vehicles (14,687)  (10,838)  (44,079)  (47,868)SUMMIT Operator revenue (34,655)  (32,883)  (90,306)  (86,424)Non-building revenue (26,955)  (20,271)  (59,524)  (40,406)Net operating income (NOI) 86,325   75,063   260,895   229,321         Equity in net income (loss) from unconsolidated joint ventures 26,692   (9,287)  20,860   (30,892)SLG's share of unconsolidated JV depreciable real estate reserves —   —   —   1,780 SLG's share of unconsolidated JV depreciation and amortization 68,880   66,616   207,074   194,844 SLG's share of unconsolidated JV amortization of deferred financing costs 4,101   3,558   12,519   9,856 SLG's share of unconsolidated JV interest expense, net of interest income 74,059   67,628   216,017   194,883 SLG's share of unconsolidated JV gain on early extinguishment of debt —   (57,187)  4,796   (57,187)SLG's share of unconsolidated JV investment income (554)  (3,963)  (1,759)  (13,940)SLG's share of unconsolidated JV loan loss and other investment reserves, net of recoveries —   —   —   14,531 SLG's share of unconsolidated JV non-building revenue (2,153)  (1,645)  (5,599)  (5,219)NOI including SLG share of unconsolidated JVs 257,350   140,783   714,803   537,977         NOI from other properties/affiliates (73,925)  30,394   (185,804)  (36,758)Same-Store NOI 183,425   171,177   528,999   501,219         Straight-line and free rent (3,462)  693   (10,052)  1,844 Amortization of acquired above and below-market leases, net 266   146   1,082   389 Operating lease straight-line adjustment 1,532   204   1,893   611 SLG's share of unconsolidated JV straight-line and free rent (14,003)  (10,396)  (32,949)  (33,788)SLG's share of unconsolidated JV amortization of acquired above and below-market leases, net (6,718)  (6,268)  (20,394)  (18,498)Same-store cash NOI$161,040  $155,556  $468,579  $451,777         Lease termination income (387)  (270)  (1,128)  (4,875)SLG's share of unconsolidated JV lease termination income (1,001)  (3,189)  (7,333)  (5,421)Same-store cash NOI excluding lease termination income$159,652  $152,097  $460,118  $441,481                  SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES

Funds from Operations (FFO)

FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of Nareit in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including the Company's ability to make cash distributions.

Funds Available for Distribution (FAD)

FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line operating lease rent, non-cash deferred compensation, and pro-rata adjustments for these items from the Company's unconsolidated JVs, less straight line rental income, free rent net of amortization, second generation tenant improvement and leasing costs, and recurring capital expenditures.

FAD is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure with respect to liquidity. Because all companies do not calculate FAD the same way, the presentation of FAD may not be comparable to similarly titled measures of other companies. FAD does not represent cash flow from operating, investing and finance activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of Nareit in September 2017 defines EBITDAre as net income (loss) (computed in accordance with GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.

The Company presents EBITDAre because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Net Operating Income (NOI) and Cash NOI

NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and the amortization of acquired above and below-market leases from NOI, while adding operating lease straight-line adjustment and the allowance for straight-line tenant credit loss.

The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating the Company's properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. None of these measures is an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.

Coverage Ratios

The Company presents fixed charge and debt service coverage ratios to provide a measure of the Company’s financial flexibility to service current debt amortization, interest expense and operating lease rent from current cash net operating income. These coverage ratios represent a common measure of the Company’s ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).

SLG-EARN

Meta creates a new stock class to keep Zuckerberg in control

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Meta wants to continue its "founder-led model" — so it's creating a new stock class.

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Meta's board wants Mark Zuckerberg to stick around.

The company announced a new category of non-voting Class C stock in its third-quarter earnings report. It listed several reasons for creating the new class — one of which is to keep the CEO in control.

A Special Committee established by Meta's board determined that Zuckerberg was the best fit to lead the company into its future, and highlighted the CEO's creative vision and management abilities.

"The creation of the Class C common stock will continue the founder-led model that has driven the company's success since its inception," Meta said.

The stock class will also provide Meta the ability to finance its growth, the earnings report said. Meta is spending big on AI and the data centers needed to power it. The company reported $34.91 billion in third-quarter capital expenditures.

Meta's press release said the distribution would effectively amount to a two-for-one stock split for existing shareholders. Susan Li, Meta's chief financial officer, said that the stock will be distributed to existing shareholders.

Other tech companies have issued stock to access new capital without diluting their CEO's voting power. Google performed a stock split in 2012 for a similar reason. Semafor was first to report the new stock class.

Zuckerberg has long been the face of Meta. He's strengthened his leadership through the AI boom, going "startup mode" and getting hands-on with the tech. He even moved his desk closer to the AI team.

The success of Muse, Meta's AI agent, has raised the profile of another Meta executive: Alexandr Wang. The chief AI officer has joined Zuckerberg for podcasts and spoken onstage at keynotes.

A Financial Times profile last week touted Wang as a "potential successor to Zuckerberg." It's clear the board wants Zuckerberg there for the long haul.

Read next

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Henry Chandonnet

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Henry Chandonnet is a senior reporter on the Business News desk. He writes about tech culture, from Silicon Valley's startup class to the everyday AI user. He also closely covers Big Tech and the workplace. Henry previously wrote for Fast Company, where he covered trending tech news. He's written for The Daily Beast, People Magazine, and Vulture.Email Henry at [email protected], reach him on Signal at henrychand.30, or follow him on X @HenryChandonnet. 

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Tesla has started production of its Optimus humanoid robot at its factory in Fremont, California, in a manufacturing space once dedicated to making electric vehicles, the company announced Wednesday.

“The bots coming off this line are the first production-quality bots that we have manufactured,” Tesla wrote in its third-quarter letter to shareholders. “While we will continue to iterate on the hardware and manufacturing process, we have proven that the current manufacturing process for Optimus is suitable for a commercial product.”

Tesla CEO Elon Musk said on a conference call that he considers this “early production,” and that the ramp will be an slow and “somewhat bumpy because it is such a radically new product.” He nonetheless claimed Tesla will be able to make 20,000 of them per week by the end of 2027.

“There’s still some things we need to tweak about the design, because you need to deliver a robot that is that is safe and reliable and has long duration, so it can’t like, wear out after a month,” he said. “And there’s still quite a lot of work to do with regard to the AI and the robot for it to be truly useful for open-ended tasks.”

That fordward-looking development wasn’t enough to lift the company’s otherwise middling third-quarter earnings, results that typify a company at the midpoint of a major bet. Tesla’s revenue was flat and its expenses skyrocketed as it pressed the accelerator on its Optimus robots, AI, and autonomous driving. The end result was a 43% drop in profits.

The company’s revenue was largely driven by EV sales, which were flat year-over-year at $20 billion. Tesla delivered 486,532 vehicles in the third quarter, about 6,000 more than the previous quarter, but fewer than in the same period last year. 

Tesla’s total third-quarter revenue was $28.04 billion, a skosh below the $28.09 billion it generated in the third quarter of 2025. Tesla’s third-quarter revenue was also about $200 million lower than the previous quarter’s haul of $28.23 billion.

Tesla saw a 16% year-over-year drop in its solar and energy storage business to $2.8 billion, which it blamed on tariff-related customer refunds. There was some positive revenue growth in its services business, a category that includes customer subscriptions to its Full Self-Driving advanced driver-assistance software. Tesla’s services business grew 33% year-over-year, bringing in $4.6 billion. 

None of this was enough to outpace Tesla’s spending on artificial intelligence projects and its Optimus robot, which took a big bite out of profits.

The company reported $787 million in net income, a 43% drop from the same period in 2025 when it earned $1.37 billion. Lower regulatory credit sales also put pressure on its profitability. The company stayed in the black in large part because of a big boost from its “services and other” segment, which accounted for a record $734 million in gross profit for the quarter.

This story has been updated with information from Tesla’s quarterly conference call.

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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.

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Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.

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Amazon.com Inc (NASDAQ:AMZN) could strengthen its retail margins through warehouse automation and an expanding logistics network, as investments in fulfillment capacity and third-party parcel delivery create new opportunities, according to Jefferies. 

Following a discussion with a logistics industry expert, the broker said automation remains a key long-term competitive advantage for Amazon, helping reduce its exposure to labour shortages and wage inflation even if immediate cost savings prove limited. 

Amazon has deployed more than 1 million robots, but the expert estimates only 40% to 45% of its US small-sortable fulfillment centers are highly automated, suggesting considerable room for further adoption. 

Newer facilities can process around 1 million units on peak days with approximately 1,000 workers, compared with 2,500 to 3,000 historically. A US$1 hourly increase in warehouse and driver wages would add an estimated US$1.1 billion to operating expenses, highlighting the value of reducing labor dependency. 

Jefferies also sees renewed investment in retail logistics, with gross logistics space additions rising from 56 million square feet in 2025 to 81 million in 2026. Amazon has around US$27 billion in visible capital expenditure planned over the next couple of years, covering automated fulfillment centers, inbound cross-docks and delivery infrastructure. 

The broker identified third-party parcel delivery as another potential growth area. Amazon could expand its US delivery stations from approximately 575 to 950 by 2030, allowing it to handle more shipments currently managed by UPS and the US Postal Service. 

Early trials reportedly show 20% to 25% savings for business-to-consumer shippers, partly because Amazon avoids some residential, weekend and package surcharges charged by established carriers. However, execution during peak shopping periods remains a key test. 

Grocery presents a more difficult challenge. Delivery costs of US$10 to US$12 per order make smaller baskets challenging to profitably serve. 

Jefferies sees potential in Amazon's planned Illinois hybrid retail and fulfillment concept, expected in 2028, which would combine large-format shopping with automated rapid delivery. 

The broker remains constructive on Amazon's margin outlook, expecting fulfillment efficiencies and AWS operating leverage to offset the structural challenges of its retail business. 

, /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.32 per share, payable on December 24, 2026 to shareholders of record as of December 4, 2026.

The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on January 25, 2027 to shareholders of record as of January 11, 2027.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts. 

Investors may contact
Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]

Reporters may contact
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected] 

SOURCE Bank of America Corporation

Walmart is embracing agentic commerce with the launch of its own Agent Gateway to manage transactions and other new features aimed at customers using AI agents, the retailer announced on Wednesday. The move comes shortly after Walmart’s top competitor, Amazon, began blocking AI agents from making purchases on behalf of online shoppers.

The company’s embrace of AI technology differentiates it from other online businesses, including not only Amazon but also various travel and booking sites, which have responded to the growing consumer adoption of AI agents by locking them out of their websites completely. Walmart, on the other hand, had already announced a partnership with a leading agent in the space, Meta’s Muse, and offers integrations with popular AI apps like ChatGPT, Gemini, and others.

Now, it’s expanding on those efforts with more technology to prepare for a world where AI agents become mainstream, said Walmart President and CEO John Furner, speaking at the Masters of Scale Summit in San Francisco on Wednesday. The technology will support agentic shopping from both Walmart and the company’s discount warehouse, Sam’s Club.

It starts with Walmart’s Agent Gateway, the company’s new MCP server, which is designed to help approved agents connect to Walmart over the model context protocol (MCP). The protocol, originally created by Anthropic, allows AI agents to connect to external data sources, tools, and other workflows. In this case, it lets an AI agent search across Walmart’s online inventory and make purchases on behalf of the agent’s user.

What’s more, the retailer says that its Agent Gateway will be able to help customers shop for their usual brands or items without having to share their personal information or purchase history directly with the agent.

The company has also developed new technology to differentiate an agent’s purchases from those initiated directly by the customer, and to give shoppers more control over what their agents can and cannot do.

With Agent Profiles, rolling out next month, customers will be able to authorize each AI agent they use with a dedicated profile in their account, allowing them to see the agent’s purchases separately from their own. Plus, customers will be in control of how purchases get approved by either requiring approval for each transaction or by authorizing transactions within a certain spending limit they set.

The retailer says these controls are similar to adding someone as an authorized user on your credit card, where their transactions are identified, and you can cap their spending.

The Agent Profiles will be created the first time you use a given agent to shop through the Walmart Agent Gateway, the company notes. To get started, you’ll authorize and link the Agent Profile to your Walmart account, then set your controls or spending limits. You can also delete an Agent Profile at any time. Agent support is available for anyone with a Walmart account; a Walmart+ membership is not necessary.

Alongside these technologies, Walmart is introducing special “terms” for AI agents, which specify how they must operate and what rights they have to transact on its site. Of note, Walmart says that its returns process applies, including when an agent doesn’t act as intended. That’s a customer-friendly condition that could sway consumers who were worried about being an early tester of agentic commerce, as they won’t fear ending up with products they don’t want because of a misbehaving agent.

Walmart also says that agents can’t take actions beyond what the shopper intends, can’t access the customers’ payment information, and can only access the information they need for the given task. Agents that don’t comply with the terms will be blocked from accessing Walmart’s site.

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

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Analysts on Wall Street project that Verizon Communications (VZ - Free Report) will announce quarterly earnings of $1.27 per share in its forthcoming report, representing an increase of 5% year over year. Revenues are projected to reach $34.81 billion, increasing 2.9% from the same quarter last year.

The consensus EPS estimate for the quarter has been revised 0.1% 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.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation 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 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.

In light of this perspective, let's dive into the average estimates of certain Verizon metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts forecast 'Operating Revenues- Wireless equipment revenues' to reach $5.45 billion. The estimate indicates a change of -3% from the prior-year quarter.

It is projected by analysts that the 'Operating Revenues- Service revenues and other' will reach $29.29 billion. The estimate suggests a change of +3.9% year over year.

The consensus among analysts is that 'Operating revenues- Consumer' will reach $26.90 billion. The estimate suggests a change of +3% year over year.

The average prediction of analysts places 'Operating revenues- Business' at $7.19 billion. The estimate points to a change of +0.7% from the year-ago quarter.

Analysts' assessment points toward 'Operating revenues- Consumer- Other' reaching $2.40 billion. The estimate suggests a change of +140.1% year over year.

The consensus estimate for 'Operating revenues- Consumer- Wireless equipment' stands at $4.71 billion. The estimate indicates a year-over-year change of -1.2%.

According to the collective judgment of analysts, 'Wireless - Retail Prepaid Connections' should come in at 19.40 million. The estimate compares to the year-ago value of 19.06 million.

Analysts predict that the 'Wireless - Retail postpaid Connections' will reach 126.85 million. The estimate is in contrast to the year-ago figure of 125.91 million.

Analysts expect 'Wireless - Retail Connections - End of Period' to come in at 147.27 million. The estimate compares to the year-ago value of 146.12 million.

The collective assessment of analysts points to an estimated 'Operating Income (Loss)- Business' of $969.00 million. Compared to the present estimate, the company reported $637.00 million in the same quarter last year.

The combined assessment of analysts suggests that 'Operating Income (Loss)- Consumer' will likely reach $8.04 billion. Compared to the present estimate, the company reported $7.66 billion in the same quarter last year.

View all Key Company Metrics for Verizon here>>>

Shares of Verizon have demonstrated returns of -4.1% over the past month compared to the Zacks S&P 500 composite's +1% change. With a Zacks Rank #3 (Hold), VZ 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 >>>> .

Exceeded expectations with accelerated revenue growth led by Software and Infrastructure; Raises outlook for full-year free cash flow

, /PRNewswire/ -- IBM (NYSE: IBM) today announced third-quarter 2026 earnings results.

"Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow. Our clients are now deploying Super Intelligence in ways that transform entire operating models, instead of simply addressing narrow or novel problems. IBM's technology and expertise are helping organizations drive growth and serve customers with greater speed, precision and efficiency than ever before," said Arvind Krishna, IBM chairman, president and chief executive officer. "For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year."

Third-Quarter Highlights

Revenue
- Revenue of $17.1 billion, up 5 percent, up 6 percent at constant currency
- Software revenue up 8 percent, up 9 percent at constant currency
- Consulting revenue flat, up 2 percent at constant currency
- Infrastructure revenue up 4 percent, up 5 percent at constant currency
Profit
- Gross Profit Margin: GAAP: 56.8 percent, down 50 basis points; Operating (Non-GAAP): 58.5 percent, down 20 basis points
- Pre-Tax Income Margin: GAAP: 14.6 percent, down 30 basis points; Operating (Non-GAAP): 19.3 percent, up 70 basis points
Cash Flow
- Year to date, net cash from operating activities of $11.8 billion; free cash flow of $7.8 billion

THIRD-QUARTER 2026 INCOME STATEMENT SUMMARY

 
Revenue

 
Gross

Profit

 
 
Gross

Profit

Margin

 
 
Pre-tax

Income

 
Pre-tax

Income

Margin

 
Net

Income

 
Diluted

Earnings

Per Share

GAAP from
Continuing
Operations

$ 17.1 B

 
 
$  9.7  B

 
 
56.8

%

 
$  2.5  B

 
 
14.6

%

 
$  2.2  B

 
 
$   2.31

 

Year/Year

5

% (1)

 
4

%

 
(0.5)

Pts

 
3

%

 
(0.3)

Pts

 
26

%

 
26

%

Operating

(Non-GAAP)

 
 
 
$ 10.0 B

 
 
58.5

%

 
$  3.3  B

 
 
19.3

%

 
$  2.8  B

 
 
$   2.95

 

Year/Year

 
 
 
4

%

 
(0.2)

Pts

 
9

%

 
0.7

Pts

 
12

%

 
11

%

(1)  6% at constant currency.

"Demand across our portfolio combined with strong operational execution led to accelerated growth and solid operating pre-tax margin expansion in the quarter," said James Kavanaugh, IBM senior vice president and chief financial officer. "Just as we are helping clients extract value from their operations with Super Intelligence, we are driving tangible returns through our productivity initiatives inside IBM. This approach fuels profit and free cash flow growth and enables us to continue to invest in our business while returning value to shareholders through our dividend."

Segment Results for Third Quarter

Software — revenues of $7.8 billion, up 8 percent, up 9 percent at constant currency
- Hybrid Cloud (Red Hat) up 11 percent
- Automation down 3 percent
- Data up 19 percent, up 20 percent at constant currency
- Transaction Processing up 9 percent, up 10 percent at constant currency
Consulting — revenues of $5.3 billion, flat, up 2 percent at constant currency
- Strategy and Technology up 2 percent, up 4 percent at constant currency
- Intelligent Operations down 2 percent, flat at constant currency
Infrastructure — revenues of $3.7 billion, up 4 percent, up 5 percent at constant currency
- Hybrid Infrastructure up 8 percent, up 9 percent at constant currency
      -- IBM Z down 20 percent, down 19 percent at constant currency
      -- Distributed Infrastructure up 31 percent, up 32 percent at constant currency
- Infrastructure Support down 3 percent, down 2 percent at constant currency
Financing — revenues of $0.2 billion, down 4 percent, down 3 percent at constant currency

Cash Flow and Balance Sheet

In the third quarter, the company generated net cash from operating activities of $4.0 billion, up $0.9 billion year to year. IBM's free cash flow was $3.0 billion, up $0.7 billion year to year. The company returned $1.6 billion to shareholders in dividends in the third quarter.

For the first nine months of the year, the company generated net cash from operating activities of $11.8 billion, up $2.6 billion year to year. IBM's free cash flow was $7.8 billion, up $0.6 billion year to year.

IBM ended the third quarter with $11.1 billion of cash, restricted cash and marketable securities, down $3.4 billion from year-end 2025. The company invested $11.4 billion in acquisitions this year. Debt, including IBM Financing debt of $12.7 billion, totaled $63.8 billion, up $2.6 billion year to date.

Full-Year 2026 Expectations

Revenue: The company continues to expect full-year constant currency revenue growth in the range of four-to-five percent. At current foreign exchange rates, currency is expected to be neutral to growth for the year
Free cash flow: The company now expects full-year free cash flow to increase by more than $1 billion year-over-year

Dividend Declaration

The IBM board of directors approved a regular quarterly cash dividend of $1.69 per common share, to stockholders of record on November 10, 2026. With payment of the December 10, 2026 dividend, IBM will have paid consecutive quarterly dividends every year since 1916.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company's innovation initiatives; damage to the company's reputation; risks from investing in growth opportunities; failure of the company's intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company's ability to successfully manage acquisitions, alliances and divestitures, including integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company's failure to meet growth and productivity objectives; ineffective internal controls; the company's use of accounting estimates; impairment of the company's goodwill or amortizable intangible assets; the company's ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product and service quality issues; the development and use of AI, including the company's increased AI solutions and use of AI technologies; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data protection considerations; adverse effects related to climate change and other environmental matters; tax matters; legal proceedings and investigatory risks; the company's pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company's Form 10-Qs, Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

In an effort to provide investors with additional information regarding the company's results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
net cash from operating activities excluding IBM Financing receivables;
adjusted EBITDA;
adjusted EBITDA margin.

The rationale for management's use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM's regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-3q26. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:      IBM
                    Tim Davidson, 914-844-7847
                    [email protected]

                    Erin McElwee, 347-920-6825
                    [email protected]

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; $ in millions except per share amounts)

 

 
Three Months Ended
September 30,

 
 
Nine Months Ended
September 30,

 

 
2026

 
 
2025

 
 
2026

 
 
2025

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$        7,804

 
 
$        7,209

 
 
$       22,617

 
 
$       20,932

 

Consulting

5,335

 
 
5,324

 
 
15,934

 
 
15,706

 

Infrastructure

3,707

 
 
3,559

 
 
10,868

 
 
10,586

 

Financing

192

 
 
200

 
 
598

 
 
557

 

Other

66

 
 
38

 
 
165

 
 
68

 

TOTAL REVENUE

17,103

 
 
16,331

 
 
50,182

 
 
47,849

 

 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT

9,714

 
 
9,360

 
 
28,571

 
 
27,369

 

 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 
 
 
 
 
 
 

Software

82.5

%

 
83.1

%

 
82.6

%

 
83.5

%

Consulting

27.4

%

 
29.3

%

 
27.9

%

 
28.0

%

Infrastructure

56.7

%

 
57.2

%

 
57.4

%

 
57.7

%

Financing

40.7

%

 
45.6

%

 
42.2

%

 
45.7

%

 
 
 
 
 
 
 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

56.8

%

 
57.3

%

 
56.9

%

 
57.2

%

 
 
 
 
 
 
 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 

SG&A

4,620

 
 
4,748

 
 
14,691

 
 
14,661

 

R&D

2,378

 
 
2,082

 
 
6,863

 
 
6,129

 

Intellectual property and custom development income

(164)

 
 
(219)

 
 
(501)

 
 
(687)

 

Other (income) and expense

(109)

 
 
(173)

 
 
(296)

 
 
(376)

 

Interest expense

491

 
 
492

 
 
1,451

 
 
1,457

 

TOTAL EXPENSE AND OTHER INCOME

7,217

 
 
6,931

 
 
22,208

 
 
21,184

 

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

2,497

 
 
2,430

 
 
6,363

 
 
6,185

 

Pre-tax income margin

14.6

%

 
14.9

%

 
12.7

%

 
12.9

%

Provision for/(benefit from) income taxes

298

 
 
686

 
 
782

 
 
1,193

 

Effective tax rate

11.9

%

 
28.2

%

 
12.3

%

 
19.3

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$        2,199

 
 
$        1,744

 
 
$         5,581

 
 
$         4,992

 

 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income from discontinued operations, net of taxes

(10)

 
 
0

 
 
(10)

 
 
1

 

 
 
 
 
 
 
 
 
 
 
 
 

NET INCOME

$        2,190

 
 
$        1,744

 
 
$         5,571

 
 
$         4,993

 

 
 
 
 
 
 
 
 
 
 
 
 

EARNINGS PER SHARE OF COMMON STOCK

 
 
 
 
 
 
 
 
 
 
 

Assuming dilution

 
 
 
 
 
 
 
 
 
 
 

Continuing operations

$          2.31

 
 
$          1.84

 
 
$           5.86

 
 
$           5.27

 

Discontinued operations

$         (0.01)

 
 
$          0.00

 
 
$          (0.01)

 
 
$           0.00

 

TOTAL

$          2.30

 
 
$          1.84

 
 
$           5.85

 
 
$           5.27

 

 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
 
 
 
 
 
 
 
 
 

Continuing operations

$          2.33

 
 
$          1.87

 
 
$           5.93

 
 
$           5.36

 

Discontinued operations

$         (0.01)

 
 
$          0.00

 
 
$          (0.01)

 
 
$           0.00

 

TOTAL

$          2.32

 
 
$          1.87

 
 
$           5.92

 
 
$           5.36

 

 
 
 
 
 
 
 
 
 
 
 
 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES

OUTSTANDING (M's)

 
 
 
 
 
 
 
 
 
 
 

Assuming dilution

953.5

 
 
948.9

 
 
953.0

 
 
947.4

 

Basic

944.4

 
 
933.9

 
 
941.4

 
 
930.9

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

($ in millions)

 
At September 30,
2026

 
At December 31,
2025

ASSETS:

 
 
 
 

Current assets:

 
 
 
 

Cash and cash equivalents

 
$                 9,233

 
$              13,587

Restricted cash

 
48

 
54

Marketable securities

 
1,825

 
830

Notes and accounts receivable - trade, net

 
5,794

 
8,112

Short-term financing receivables

 
 
 
 

  Held for investment, net

 
5,638

 
7,344

  Held for sale

 
774

 
1,131

Other accounts receivable, net

 
1,673

 
1,052

Inventories

 
1,945

 
1,220

Deferred costs

 
1,177

 
1,084

Prepaid expenses and other current assets

 
3,083

 
2,530

Total current assets

 
31,192

 
36,944

 
 
 
 
 

Property, plant and equipment, net

 
6,043

 
5,899

Operating right-of-use assets, net

 
3,114

 
3,129

Long-term financing receivables, net

 
6,844

 
7,708

Prepaid pension assets

 
7,715

 
7,544

Deferred costs

 
808

 
825

Deferred taxes

 
8,827

 
8,610

Goodwill

 
74,916

 
67,717

Intangibles, net

 
13,603

 
11,391

Investments and sundry assets

 
1,950

 
2,112

Total assets

 
$             155,011

 
$            151,880

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 
$                 1,867

 
$                2,347

Short-term debt

 
7,013

 
6,424

Accounts payable

 
4,491

 
4,756

Compensation and benefits

 
3,668

 
4,114

Deferred income

 
15,164

 
16,101

Operating lease liabilities

 
749

 
800

Other liabilities

 
3,534

 
4,116

Total current liabilities

 
36,485

 
38,658

 
 
 
 
 

Long-term debt

 
56,804

 
54,836

Retirement-related obligations

 
8,452

 
9,018

Deferred income

 
4,318

 
4,271

Operating lease liabilities

 
2,574

 
2,547

Other liabilities

 
10,172

 
9,810

Total liabilities

 
118,805

 
119,139

 
 
 
 
 

EQUITY:

 
 
 
 

IBM stockholders' equity:

 
 
 
 

Common stock

 
65,137

 
63,318

Retained earnings

 
156,576

 
155,648

Treasury stock - at cost

 
(171,191)

 
(170,605)

Accumulated other comprehensive income/(loss)

 
(14,985)

 
(15,713)

Total IBM stockholders' equity

 
35,537

 
32,648

 
 
 
 
 

Noncontrolling interests

 
669

 
93

Total equity

 
36,206

 
32,740

 
 
 
 
 

Total liabilities and equity

 
$             155,011

 
$            151,880

INTERNATIONAL BUSINESS MACHINES CORPORATION

STATEMENT OF CASH FLOWS

(Unaudited)

 

 
 
Three Months Ended
September 30,

 
Nine Months Ended
September 30,

($ in millions)

 
2026

 
2025 (1)

 
2026

 
2025 (1)

Cash flows from operating activities:

 
 
 
 
 
 
 
 

Net income

 
$     2,190

 
$     1,744

 
$     5,571

 
$     4,993

Adjustments to reconcile net income to cash provided by operating

activities:

 
 
 
 
 
 
 
 

Depreciation (2)

 
550

 
583

 
1,638

 
1,698

Amortization of capitalized software and acquired intangible assets

 
828

 
699

 
2,363

 
2,027

Stock-based compensation

 
535

 
444

 
1,539

 
1,285

Net (gain)/loss on divestitures, asset sales and other

 
(47)

 
(6)

 
(124)

 
(46)

Changes in operating assets and liabilities, net of

acquisitions/divestitures

 
(31)

 
(383)

 
804

 
(804)

Net cash provided by operating activities

 
4,025

 
3,081

 
11,791

 
9,153

 
 
 
 
 
 
 
 
 

Cash flows from investing activities:

 
 
 
 
 
 
 
 

Payments for property, plant and equipment

 
(332)

 
(255)

 
(793)

 
(709)

Proceeds from disposition of property, plant and equipment/other

 
29

 
7

 
60

 
118

Investment in software

 
(154)

 
(162)

 
(467)

 
(476)

Purchases of marketable securities and other investments

 
(1,898)

 
(1,169)

 
(4,769)

 
(8,910)

Proceeds from disposition of marketable securities and other

investments

 
640

 
1,199

 
3,763

 
6,162

Acquisition of businesses, net of cash acquired

 
(884)

 
(58)

 
(11,364)

 
(7,903)

Divestiture of businesses, net of cash transferred

 
28

 
-

 
30

 
(1)

Net cash provided by/(used in) investing activities

 
(2,570)

 
(437)

 
(13,539)

 
(11,719)

 
 
 
 
 
 
 
 
 

Cash flows from financing activities:

 
 
 
 
 
 
 
 

Proceeds from new debt

 
1,978

 
6

 
9,415

 
8,391

Payments to settle debt

 
(120)

 
(1,114)

 
(7,261)

 
(3,679)

Short-term borrowings/(repayments) less than 90 days - net

 
2

 
0

 
3

 
(29)

Common stock repurchases for tax withholdings

 
(352)

 
(414)

 
(817)

 
(851)

Proceeds from issuance of shares

 
143

 
134

 
562

 
535

Noncontrolling interest transactions (3)

 
575

 
-

 
557

 
(15)

Financing - other (3)

 
(24)

 
(54)

 
(98)

 
(93)

Cash dividends paid

 
(1,596)

 
(1,569)

 
(4,762)

 
(4,681)

Net cash provided by/(used in) financing activities

 
607

 
(3,012)

 
(2,402)

 
(423)

 
 
 
 
 
 
 
 
 

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

cash

 
3

 
(59)

 
(209)

 
429

Net change in cash, cash equivalents and restricted cash

 
2,064

 
(426)

 
(4,359)

 
(2,561)

 
 
 
 
 
 
 
 
 

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

 
7,217

 
12,026

 
13,640

 
14,160

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

 
$     9,282

 
$   11,600

 
$     9,282

 
$   11,600

____________________

(1) Reclassified to align with the Consolidated Statement of Cash Flows presentation.

(2) Includes operating lease right-of-use assets amortization.

(3) Prior-year amounts have been reclassified to conform to the change in 2026 presentation.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 

 
 
Three Months Ended

September 30,

 
Nine Months Ended

September 30,

($ in billions)

 
2026

2025

Yr/Yr

 
2026

2025

Yr/Yr

Net income as reported (GAAP)

 
$   2.2

$   1.7

$  0.4

 
$   5.6

$   5.0

$  0.6

Less: income from discontinued operations, net of tax

 
0.0

0.0

0.0

 
0.0

0.0

0.0

Income from continuing operations

 
2.2

1.7

0.5

 
5.6

5.0

0.6

Provision for/(benefit from) income taxes from continuing ops.

 
0.3

0.7

(0.4)

 
0.8

1.2

(0.4)

Pre-tax income from continuing operations (GAAP)

 
2.5

2.4

0.1

 
6.4

6.2

0.2

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 

Acquisition-related charges (1)

 
0.7

0.6

0.1

 
2.1

1.7

0.3

Non-operating retirement-related costs/(income)

 
0.1

0.0

0.1

 
0.3

0.1

0.2

 
 
 
 
 
 
 
 
 

Operating (non-GAAP) pre-tax income from continuing ops.

 
3.3

3.0

0.3

 
8.7

8.0

0.7

 
 
 
 
 
 
 
 
 

Net interest expense

 
0.4

0.3

0.1

 
1.1

0.9

0.2

Depreciation/amortization of non-acquired intangible assets

 
0.7

0.7

0.0

 
2.1

2.1

0.0

Stock-based compensation

 
0.5

0.4

0.1

 
1.5

1.3

0.3

Workforce rebalancing charges

 
0.0

0.0

0.0

 
0.4

0.4

0.0

Corporate (gains) and charges (2)

 
0.0

0.0

0.0

 
(0.2)

0.0

(0.2)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 
$   4.9

$   4.6

$  0.3

 
$ 13.7

$ 12.7

$  1.0

 
 
 
 
 
 
 
 
 

Revenue

 
$ 17.1

$ 16.3

5 %

 
$ 50.2

$ 47.8

5 %

GAAP net income margin

 
12.8 %

10.7 %

2.1pts

 
11.1 %

10.4 %

0.7pts

Adjusted EBITDA margin

 
28.7 %

28.0 %

0.6pts

 
27.2 %

26.5 %

0.8pts

____________________

(1) Primarily consists of amortization of acquired intangible assets.

(2) Primarily consists of unique corporate actions such as gains on divestitures and asset sales.

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 

 
 
Three Months Ended September 30, 2026

 

 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 
Software

 
 
Consulting

 
 
Infrastructure

 
 
Financing

 

Revenue

 
$         7,804

 
 
$         5,335

 
 
$            3,707

 
 
$           192

 

Segment profit

 
$         2,734

 
 
$            653

 
 
$               715

 
 
$           108

 

Segment profit margin

 
35.0

%

 
12.2

%

 
19.3

%

 
56.1

%

Change YTY revenue

 
8.2

%

 
0.2

%

 
4.2

%

 
(3.9)

%

Change YTY revenue - constant currency

 
8.7

%

 
1.8

%

 
4.9

%

 
(3.3)

%

 

 
 
Three Months Ended September 30, 2025

 

 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 
 Software

 
 
Consulting

 
 
Infrastructure

 
 
Financing

 

Revenue

 
$         7,209

 
 
$         5,324

 
 
$            3,559

 
 
$           200

 

Segment profit

 
$         2,374

 
 
$            686

 
 
$               644

 
 
$           123

 

Segment profit margin

 
32.9

%

 
12.9

%

 
18.1

%

 
61.6

%

 

 
 
Nine Months Ended September 30, 2026

 

 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 
Software

 
 
Consulting

 
 
Infrastructure

 
 
Financing

 

Revenue

 
$        22,617

 
 
$        15,934

 
 
$          10,868

 
 
$           598

 

Segment Profit

 
$          7,335

 
 
$          1,858

 
 
$            2,074

 
 
$           334

 

Segment Profit Margin

 
32.4

%

 
11.7

%

 
19.1

%

 
55.9

%

Change YTY Revenue

 
8.1

%

 
1.5

%

 
2.7

%

 
7.3

%

Change YTY Revenue - Constant Currency

 
7.0

%

 
1.2

%

 
1.9

%

 
5.7

%

 

 
 
Nine Months Ended September 30, 2025

 

 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 
 Software

 
 
Consulting

 
 
Infrastructure

 
 
Financing

 

Revenue

 
$        20,932

 
 
$        15,706

 
 
$          10,586

 
 
$           557

 

Segment Profit

 
$          6,517

 
 
$          1,807

 
 
$            1,857

 
 
$           371

 

Segment Profit Margin

 
31.1

%

 
11.5

%

 
17.5

%

 
66.5

%

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

 

 
Three Months Ended September 30, 2026

 

 
Continuing Operations

 

 
GAAP

 
 
Acquisition-

Related

Adjustments (1)

 
 
Retirement-

Related

Adjustments (2)

 
 
Tax

Reform

Impacts

 
 
Operating

(Non-

GAAP)

 

Gross profit

$  9,714

 
 
$                   289

 
 
$                     —

 
 
$         —

 
 
$       10,004

 

Gross profit margin

56.8

%

 
1.7

pts

 
—

pts

 
—

pts

 
58.5

%

SG&A

$  4,620

 
 
$                 (428)

 
 
$                     —

 
 
$         —

 
 
$         4,193

 

Other (income) & expense

(109)

 
 
0

 
 
(91)

 
 
—

 
 
(200)

 

Total expense & other (income)

7,217

 
 
(418)

 
 
(91)

 
 
—

 
 
6,708

 

Pre-tax income from continuing operations

2,497

 
 
707

 
 
91

 
 
—

 
 
3,295

 

Pre-tax margin from continuing operations

14.6

%

 
4.1

pts

 
0.5

pts

 
—

pts

 
19.3

%

Provision for/(benefit from) income taxes (3)

$     298

 
 
$                  166

 
 
$                    20

 
 
—

 
 
$            483

 

Effective tax rate

11.9

%

 
2.5

pts

 
0.3

pts

 
—

pts

 
14.7

%

Income from continuing operations

$  2,199

 
 
$                  542

 
 
$                    71

 
 
$         —

 
 
$         2,812

 

Income margin from continuing operations

12.9

%

 
3.2

pts

 
0.4

pts

 
—

pts

 
16.4

%

Diluted earnings per share: continuing

operations

$    2.31

 
 
$                 0.57

 
 
$                 0.07

 
 
$         —

 
 
$           2.95

 

 

 
Three Months Ended September 30, 2025

 

 
Continuing Operations

 

 
GAAP

 
 
Acquisition-

Related

Adjustments (1)

 
 
Retirement-

Related

Adjustments (2)

 
 
Tax

Reform

Impacts

 
 
Operating

(Non-

GAAP)

 

Gross profit

$  9,360

 
 
$                   231

 
 
$                     —

 
 
$         —

 
 
$         9,591

 

Gross profit margin

57.3

%

 
1.4

pts

 
—

pts

 
—

pts

 
58.7

%

SG&A

$  4,748

 
 
$                 (354)

 
 
$                     —

 
 
$         —

 
 
$         4,394

 

Other (income) & expense

(173)

 
 
(6)

 
 
(13)

 
 
—

 
 
(191)

 

Total expense & other (income)

6,931

 
 
(359)

 
 
(13)

 
 
—

 
 
6,559

 

Pre-tax income from continuing operations

2,430

 
 
590

 
 
13

 
 
—

 
 
3,033

 

Pre-tax margin from continuing operations

14.9

%

 
3.6

pts

 
0.1

pts

 
—

pts

 
18.6

%

Provision for/(benefit from) income taxes (3)

$     686

 
 
$                   136

 
 
$                       3

 
 
$      (309)

 
 
$            516

 

Effective tax rate

28.2

%

 
(1.0)

pts

 
0.0

pts

 
(10.2)

pts

 
17.0

%

Income from continuing operations

$  1,744

 
 
$                   454

 
 
$                     10

 
 
$       309

 
 
$         2,517

 

Income margin from continuing operations

10.7

%

 
2.8

pts

 
0.1

pts

 
1.9

pts

 
15.4

%

Diluted earnings per share: continuing

operations

$    1.84

 
 
$                  0.48

 
 
$                  0.01

 
 
$      0.33

 
 
$           2.65

 

____________________

(1) Includes amortization of acquired intangible assets and acquisition-related charges such as in-process research and development, transaction

     costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

     financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

     curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

 

 
Nine Months Ended September 30, 2026

 

 
Continuing Operations

 

 
GAAP

 
 
Acquisition-

Related

Adjustments (1)

 
 
Retirement-

Related

Adjustments (2)

 
 
Tax

Reform

Impacts

 
 
Operating

(Non-

GAAP)

 

Gross Profit

$ 28,571

 
 
$                   813

 
 
$                     —

 
 
$        —

 
 
$    29,384

 

Gross Profit Margin

56.9

%

 
1.6

pts

 
—

pts

 
—

pts

 
58.6

%

SG&A

$ 14,691

 
 
$              (1,257)

 
 
$                     —

 
 
$        —

 
 
$    13,435

 

Other (Income) & Expense

(296)

 
 
1

 
 
(283)

 
 
—

 
 
(578)

 

Total Expense & Other (Income)

22,208

 
 
(1,256)

 
 
(283)

 
 
—

 
 
20,669

 

Pre-tax Income from Continuing Operations

6,363

 
 
2,069

 
 
283

 
 
—

 
 
8,715

 

Pre-tax Margin from Continuing Operations

12.7

%

 
4.1

pts

 
0.6

pts

 
—

pts

 
17.4

%

Provision for/(Benefit from) Income Taxes (3)

$      782

 
 
$                  470

 
 
$                    43

 
 
$         (6)

 
 
$      1,290

 

Effective Tax Rate

12.3

%

 
2.5

pts

 
0.1

pts

 
(0.1)

pts

 
14.8

%

Income from Continuing Operations

$   5,581

 
 
$               1,598

 
 
$                  240

 
 
$          6

 
 
$      7,425

 

Income Margin from Continuing Operations

11.1

%

 
3.2

pts

 
0.5

pts

 
0.0

pts

 
14.8

%

Diluted Earnings Per Share: Continuing

Operations

$     5.86

 
 
$                 1.68

 
 
$                 0.25

 
 
$     0.01

 
 
$        7.79

 

 

 
Nine Months Ended September 30, 2025

 

 
Continuing Operations

 

 
GAAP

 
 
Acquisition-

Related

Adjustments (1)

 
 
Retirement-

Related

Adjustments (2)

 
 
Tax

Reform

Impacts

 
 
Operating

(Non-

GAAP)

 

Gross Profit

$ 27,369

 
 
$                   657

 
 
$                     —

 
 
$        —

 
 
$    28,025

 

Gross Profit Margin

57.2

%

 
1.4

pts

 
—

pts

 
—

pts

 
58.6

%

SG&A

$ 14,661

 
 
$              (1,055)

 
 
$                     —

 
 
$        —

 
 
$    13,606

 

Other (Income) & Expense

(376)

 
 
(7)

 
 
(61)

 
 
—

 
 
(444)

 

Total Expense & Other (Income)

21,184

 
 
(1,066)

 
 
(61)

 
 
—

 
 
20,058

 

Pre-tax Income from Continuing Operations

6,185

 
 
1,723

 
 
61

 
 
—

 
 
7,968

 

Pre-tax Margin from Continuing Operations

12.9

%

 
3.6

pts

 
0.1

pts

 
—

pts

 
16.7

%

Provision for/(Benefit from) Income Taxes (3)

$   1,193

 
 
$                  396

 
 
$                      0

 
 
$     (307)

 
 
$      1,282

 

Effective Tax Rate

19.3

%

 
0.8

pts

 
(0.2)

pts

 
(3.9)

pts

 
16.1

%

Income from Continuing Operations

$   4,992

 
 
$               1,326

 
 
$                    61

 
 
$      307

 
 
$      6,686

 

Income Margin from Continuing Operations

10.4

%

 
2.8

pts

 
0.1

pts

 
0.6

pts

 
14.0

%

Diluted Earnings Per Share: Continuing

Operations

$     5.27

 
 
$                 1.40

 
 
$                 0.06

 
 
$     0.32

 
 
$        7.06

 

____________________

(1) Includes amortization of acquired intangible assets, and acquisition-related charges such as in-process research and development, transaction 

     costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

     financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

     curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION

(Unaudited)

 

 
 
Three Months Ended
September 30,

 
Nine Months Ended
September 30,

($ in millions)

 
2026

 
2025

 
2026

 
2025

Net cash provided by operating activities per GAAP

 
$     4,025

 
$     3,081

 
$   11,791

 
$     9,153

 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 
541

 
298

 
2,805

 
905

 
 
 
 
 
 
 
 
 

Net cash from operating activities excl. IBM Financing receivables

 
3,484

 
2,783

 
8,986

 
8,248

 
 
 
 
 
 
 
 
 

Capital expenditures, net

 
(457)

 
(410)

 
(1,200)

 
(1,067)

 
 
 
 
 
 
 
 
 

Free cash flow

 
$     3,027

 
$     2,373

 
$     7,787

 
$     7,181

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 

 
 
Three Months Ended
September 30,

 
Nine Months Ended
September 30,

($ in billions)

 
2026

 
2025

 
2026

 
2025

Net cash provided by operating activities

 
$   4.0

 
$   3.1

 
$ 11.8

 
$   9.2

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 
0.4

 
0.3

 
1.1

 
0.9

Provision for/(benefit from) income taxes from continuing operations

 
0.3

 
0.7

 
0.8

 
1.2

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 
0.5

 
0.3

 
2.8

 
0.9

Net (gain)/loss on divestitures, assets sales and other (1)

 
0.0

 
0.0

 
(0.1)

 
0.0

Other assets and liabilities/other, net (1,2)

 
(0.7)

 
(0.8)

 
(2.6)

 
(2.2)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 
$   4.9

 
$   4.6

 
$ 13.7

 
$ 12.7

 
 
 
 
 
 
 
 
 

Revenue

 
$ 17.1

 
$ 16.3

 
$ 50.2

 
$ 47.8

Net cash provided by operating activities margin

 
23.5 %

 
18.9 %

 
23.5 %

 
19.1 %

Adjusted EBITDA margin

 
28.7 %

 
28.0 %

 
27.2 %

 
26.5 %

____________________

(1) Reclassified to align with the presentation of similar line items in the Statement of Cash Flows.

(2) Mainly consists of Changes in operating assets and liabilities, net of acquisitions/divestitures in the Statement of Cash Flows chart,

      workforce rebalancing charges, non-operating impacts, and corporate (gains) and charges, less the change in Financing receivables.

SOURCE IBM