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Quest Diagnostics Incorporated (DGX) Q2 2026 Earnings Call Transcript

Michael Burry is warning about a market collision: rising oil prices, an artificial intelligence debt binge and mounting pressure in long-duration Treasuries.

"Watch the long bonds," Burry wrote on X Thursday. He cited AI’s "debt explosion," rising inflation volatility, a shaky Treasury basis trade and oil returning near $100. He concluded: "Not sure how much longer PE and PC can hold their breath," apparently referring to private equity and private credit markets.

Private equity and private credit, sectors that flourished when borrowing costs were low, could be particularly vulnerable to a sharp increase in inflation and interest rates. Higher bond-market yields could expose weak underwriting and debt structured for cheaper money.

Stubbornly High Yields Echo 2007The chart shared by Burry shows the 30-year Treasury yield has traded above 5% for 27 days in 2026. That compares with six days in 2025 and seven in 2023. The last comparable stretch came in 2007, in the run-up to the global financial crisis, when the yield spent 50 days above that threshold.

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) offers a liquid proxy for long-duration government bonds and generally falls when long-term yields rise.

AI spending adds another strain. Technology companies are tapping debt markets to finance data centers, chips, power and cooling. That issuance competes with heavy Treasury supply.

Oracle Corp. (NYSE:ORCL), a cloud and data-center spender, offers an equity-market gauge of the debt-funded AI buildout. Its financing shows the AI race is spilling into credit markets.

Bloomberg columnist Simon White argued that debt-fueled AI investment has driven long-term borrowing costs toward levels unseen since the financial crisis. A 5% risk-free rate could challenge projects dependent on distant, uncertain cash flows.

The Dangers of $100 OilBurry also flagged the Treasury basis trade, a leveraged strategy exploiting small pricing gaps between cash Treasuries and futures. Sudden volatility or tighter financing can force rapid deleveraging, amplifying moves in the Treasury market.

His message is less a precise crash call than a map of interconnected stress. Elevated oil and rising long yields could squeeze private-market borrowers as AI financing absorbs more capital.

For investors, the 30-year yield may rival the next AI earnings beat. Burry suggests bonds could determine how long the rally lasts.

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SummaryKKR is rated a cautious Buy at ~$95.53, with a fair value estimate of ~$107, reflecting discounted expectations for realized earnings.Valuation already prices in delayed realizations and private-credit concerns but does not fully account for robust recurring earnings growth from management fees, insurance, and infrastructure.Q2's critical test is sustained growth in recurring earnings—management fees, FRE, insurance, and Strategic Holdings—rather than volatile quarterly adjusted net income from investment realizations.Risks include persistent realization delays, slowing recurring growth, and sector-specific headwinds; continued share repurchases near current levels signal management’s confidence. Guido Mieth/DigitalVision via Getty Images

KKR & Co. Inc. (KKR) will report its second-quarter results before the market opens on July 30. Shares are currently down nearly 40% from their 52-week highs. The decline came from concerns around private-credit markets, wealthy

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Tariffs Rose: 1 Steelmaker Thrived, 1 Still StrugglesCleveland-Cliffs NYSE: CLF said it returned to positive free cash flow in the second quarter of 2026 and expects a substantially stronger second half of the year, driven by higher steel prices, improved automotive demand, lower costs and higher shipment volumes.

Chairman and CEO Lourenco Goncalves told analysts that the company’s second-quarter results showed “tangible evidence” of the earnings recovery management has been forecasting. Cleveland-Cliffs reported adjusted EBITDA of $286 million in the quarter, which President and CFO Celso Goncalves said was the company’s best quarterly result in two years. The figure was roughly triple the company’s first-quarter adjusted EBITDA, according to management.

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Cleveland-Cliffs Sinks After Earnings—Is the Selloff Overdone?“During the second quarter, we returned to positive free cash flow and tripled our adjusted EBITDA from the first quarter,” Lourenco Goncalves said. “While the second quarter represents meaningful progress, it still understates where this company is headed over the coming quarters.”

Company Guides for Sharp EBITDA Improvement in Third Quarter Cleveland-Cliffs issued third-quarter adjusted EBITDA guidance of approximately $575 million, which Celso Goncalves said would represent the company’s strongest quarter in three years. Management said the expected improvement reflects a convergence of higher prices, lower costs and increased shipping volumes.

Cleveland-Cliffs Breaks to New Highs on Earnings, More Upside?Second-quarter steel shipments were just over 4 million tons, down sequentially because of maintenance outages and stronger automotive demand, which management said carries longer lead times. Cleveland-Cliffs expects third-quarter shipments to exceed 4.3 million tons, citing a strong order book and extended backlogs.

Pricing also improved during the second quarter. Celso Goncalves said the company’s average selling price increased by $76 per ton from the prior quarter, helped by pricing lags beginning to flow through and a richer product mix tied to automotive demand. He said Cleveland-Cliffs expects its average selling price to rise by another $55 per ton in the third quarter.

On costs, management said maintenance outages and inventory lag lifted unit costs in the second quarter, but those headwinds are expected to ease. Celso Goncalves said unit costs are expected to decline by $10 per ton in the third quarter, while Lourenco Goncalves said further cost improvements are expected in the fourth quarter as production levels rise and mill schedules become more stable.

The company also said it expects fourth-quarter adjusted EBITDA to exceed third-quarter levels, assuming the current hot-rolled coil futures curve. Management said this expectation already factors in normal holiday-related seasonal slowdowns.

Automotive Demand Helps Lift Shipments and Product Mix Management highlighted improving automotive steel demand as a major contributor to the company’s outlook. Lourenco Goncalves said Cleveland-Cliffs’ shipments to automotive customers during the second quarter were the highest in two years. He also said finishing lines that had been running at suboptimal utilization levels over the last several years are now operating at healthier levels, with a favorable impact on costs.

Cleveland-Cliffs said it has received top supplier awards this year from both Toyota and General Motors. Lourenco Goncalves said the company remains “the supplier of choice for the automotive sector in the United States.”

During the question-and-answer session, Lourenco Goncalves said about half of the expected 300,000-ton shipment increase in the third quarter would come from the improved automotive market, with the other half coming from non-automotive flat-rolled steel.

Asked about the potential restart of the Dearborn blast furnace, Goncalves said the company has the capacity and technology to supply more automotive steel, but would need stronger conviction from automakers that production will remain in the United States. He said the Dearborn furnace represents “more than 2 million tons” of potential capacity.

Contract Resets Seen as 2027 EBITDA Opportunity Cleveland-Cliffs said upcoming fixed-price contract resets could provide a significant lift in 2027. Celso Goncalves said the company expects a $500 million year-over-year EBITDA improvement from resetting a large portion of its fixed-price contracts at higher levels.

Lourenco Goncalves said negotiations for non-automotive contracts begin in earnest in the second half of the year and typically conclude by late November or early December. He said last year’s contracts were negotiated against a much lower pricing backdrop, with prevailing prices around $800 per ton or less, compared with recent levels around $1,150 per ton or more.

“The expectation that these contracts will reset for much higher prices are just a foregone conclusion,” he said.

On automotive contracts, Goncalves said Cleveland-Cliffs plans to be more selective and seek higher prices, citing its position with U.S. automakers and tighter trade enforcement.

Debt Reduction Remains Capital Allocation Priority Celso Goncalves said Cleveland-Cliffs generated positive free cash flow in the second quarter after two years of negative free cash flow and expects the trend to continue. He said second-quarter working capital was a release of about $55 million, driven by reduced inventory and a slight build in accounts payable, partially offset by accounts receivable.

The company said it is now under contract on all major property sales, with earnest money in hand in each case. Cleveland-Cliffs expects the bulk of the $400 million in proceeds from those sales to arrive in the second half of 2026.

Management said debt paydown is the company’s top capital allocation priority. Celso Goncalves said free cash flow and asset-sale proceeds will be used to reduce debt, with the goal of reaching leverage below 2.5 times by this time next year if current market conditions hold.

“Until we get to our leverage target, we’re not going to prioritize any other type of capital allocation,” he said.

Trade Policy, Stelco and Strategic Discussions Lourenco Goncalves repeatedly emphasized the importance of U.S. trade policy, particularly Section 232, which he called “the single most effective industrial policy implemented in our country in a generation.” He credited trade enforcement with supporting domestic steel utilization, manufacturing investment and automotive reshoring.

The company also discussed Canada and Stelco, which Cleveland-Cliffs acquired. Lourenco Goncalves said Stelco’s results have improved and are contributing to the company’s second-half guidance. He said Canadian hot-rolled steel pricing has improved as the pricing gap with the U.S. has narrowed, but galvanized steel in Canada remains under pressure. He warned that the competitiveness of Stelco’s galvanizing lines in Hamilton could be at risk without further trade protections.

On strategic initiatives, Celso Goncalves said offers received for assets such as HBI and FPT have fallen short of Cleveland-Cliffs’ value threshold. He said discussions with POSCO remain friendly and ongoing, but Cleveland-Cliffs does not have a deadline and is not under pressure to complete a transaction.

The company also noted that it has begun negotiations with the United Steelworkers union to renew its collective bargaining agreement. Lourenco Goncalves said the process is off to “a constructive and productive start.”

Cleveland-Cliffs also announced that Celso Goncalves has been appointed to the company’s board of directors as president and CFO. Lourenco Goncalves said the move reflects the role Celso has already been playing and marks “the early stages of a transition in leadership,” while adding that he plans to continue leading the company for several more years.

About Cleveland-Cliffs (NYSE:CLF)Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.

The company's integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.

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

Should You Invest $1,000 in Cleveland-Cliffs Right Now?Before you consider Cleveland-Cliffs, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cleveland-Cliffs wasn't on the list.

While Cleveland-Cliffs currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

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The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.

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Martin Shkreli is taking aim at Hims & Hers Health (NYSE:HIMS), saying he is short the stock and blasting the company’s peptide products as illegitimate medicine

Shkreli, known as Pharma Bro, posted on X that he is "shorted $HIMS" and calling its peptides "fake medicine," adding that "we have come far in the last 70 years of medicine, let’s not go backwards."

FDA’s Stance on PeptidesStock Movement and Advisory VoteTechnical Analysis

Hims & Hers Health trades at $32.79, with a market cap of $7.33 billion. The stock is currently trading +8.43% above its 50-day simple moving average of $30.24 and +5.13% above its 200-day SMA of $31.19.

The stock’s largest one-day move was a 40.79% increase on March 9, 2026, and it has experienced a death cross since Dec. 8, 2025, when the 50-day SMA fell below the 200-day SMA.

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Collaboration with the FAA and MITRE allows Garmin Pilot users to obtain and cancel IFR clearances within the app at select U.S. airports

, /PRNewswire/ -- Garmin (NYSE: GRMN) today announced Mobile Clearance Delivery for Garmin Pilot™, giving Garmin Pilot Premium subscribers on iOS devices a more seamless way to obtain and cancel IFR clearances at select airports within the United States. Integrated into the new Flights page in Garmin Pilot, Mobile Clearance Delivery helps general and business aviation pilots reduce radio or phone communications with air traffic control, view textual clearances and move more efficiently from planning to departure. 

Garmin Pilot adds Mobile Clearance Delivery for streamlined IFR clearances "Mobile Clearance Delivery is another example of how Garmin continues to integrate the planning and flying experience in ways that are meaningful to pilots. By bringing clearance delivery directly into Garmin Pilot, we're helping reduce workload, improve clarity and save valuable time for both pilots and air traffic control."
–Carl Wolf, Garmin Vice President Aviation Sales, Marketing, Programs & Support 

For many instrument pilots, obtaining an IFR clearance typically requires contacting ATC by radio or phone, particularly at airports where Pre-Departure Clearance or Data Comm services are not available. Mobile Clearance Delivery streamlines that process by allowing Garmin Pilot Premium users to receive clearances electronically on the ground, helping reduce frequency congestion, minimize readback errors and improve efficiency for pilots and controllers alike.

After filing an IFR flight plan in Garmin Pilot, users operating from a Mobile Clearance Delivery-capable airport will see the feature appear in the Flights page within 30 minutes of departure. Pilots can start a Mobile Clearance Delivery session, receive their clearance from ATC, review it in the app and accept it with a "WILCO" response. Once accepted, the cleared route can be seamlessly overlaid on the Garmin Pilot map, and when properly equipped, may be sent to compatible avionics via Connext®.

The clearance remains available for review in Garmin Pilot, giving pilots a text-based reference that can help improve clarity throughout the flight. Before takeoff, the clearance is accessible from the Flights page and through a banner that persists across the app; after departure, pilots can continue to reference the clearance from the Flights page for 48 hours.

A future enhancement will allow Garmin Pilot users to cancel IFR directly in the app after landing at airports that support Mobile Clearance Delivery. This capability is especially useful at uncontrolled airports or Class D towered airports when the tower is closed, helping pilots avoid additional radio or phone calls while allowing other IFR operations to move more efficiently.

Garmin developed Mobile Clearance Delivery in collaboration with the Federal Aviation Administration and MITRE and the feature is still in its operational test and evaluation phase. Available in a limited capacity now, the feature will be rolled out nationwide in phases through 2028. Five airports are currently operational for testing and evaluation, including New Century AirCenter (KIXD), Garmin's home airport near its headquarters in Olathe, Kansas; Hooks Field (KDWH); Sugar Land Regional Airport (KSGR); Galveston Scholes International Airport (KGLS); and Appleton International Airport (KATW).

Pilots attending AirVenture Oshkosh and departing from Appleton on an IFR flight plan are encouraged to try the feature and share feedback on their experience. Additionally, all Garmin Pilot Premium users operating out of test and evaluation airports are invited to send feedback to [email protected]. For more information, visit Garmin.com/Aviation.

Garmin products and services have revolutionized flight and become essential to the lives of pilots and aircraft owners and operators around the world. A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world's first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog.

About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (NYSE: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin and Connext are registered trademarks and Garmin Pilot is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 27, 2025, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). Copies of such Form 10-K are available at https://www.garmin.com/en-US/investors/sec/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Media Contact:
Mikayla Rudolph
913-397-8200
[email protected] 

SOURCE Garmin International, Inc.

AIRO Group Holdings, Inc. (AIRO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for AIRO Group Holdings, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for AIRO Group Holdings, Inc. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for AIRO Group Holdings, Inc.This company is expected to earn -$0.58 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for AIRO Group Holdings, Inc.. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of AIRO Group Holdings, Inc. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Contrarian Alert: 5 Downgraded Stocks That May Reward Long-Term InvestorsTractor Supply NASDAQ: TSCO said its second-quarter results came in below expectations as unusually weak May trends offset positive comparable sales in April and June, prompting the rural lifestyle retailer to lower its fiscal 2026 outlook, withdraw its long-term financial framework and announce the closure of about 75 underperforming Petsense stores.

Chief Executive Officer Hal Lawton said the company’s “underlying business remains healthy,” but that the quarter was pressured by a combination of higher fuel prices during the spring selling season and persistent drought in key southeastern markets. Those factors weighed on discretionary and project-oriented categories, including big-ticket items and hardlines spring goods.

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3 Retail Winners Using Cash Flow to Stay Ahead“Performance in our big ticket categories and hard lines spring goods during May alone reduced our Q2 comp sales by approximately two percentage points,” Lawton said, adding that needs-based businesses remained resilient.

Sales rise, but comparable sales decline Net sales increased approximately 2% to $4.5 billion, driven by new store growth and partly offset by lower comparable store sales. Comparable sales declined approximately 1.5%, reflecting lower transaction counts, modest inflation and softer discretionary demand, particularly in big-ticket categories.

Tractor Supply’s 10% Culling: A Bruise, Not a BreakLawton said consumable, usable and edible categories remained positive during the quarter, while big-ticket sales declined in the mid-single digits, led by softness in spring and summer categories in May. Digital sales posted double-digit growth, supported by deliver-from-store performance, higher traffic and improved conversion.

Chief Financial Officer Kurt Barton said reported gross profit increased 2.6% to $1.68 billion, with gross margin expanding 11 basis points to 37.1%. On an adjusted basis, gross profit rose 3.0% to $1.69 billion, and adjusted gross margin expanded 24 basis points to 37.2% of net sales. Barton said disciplined product cost management and tariff refunds more than offset higher freight expense and investments in the company’s price-value position.

Reported SG&A expense increased 14.4% to $1.22 billion, including a $65.8 million charge tied to the Petsense business and $9.5 million in acquisition costs associated with VIP Petcare. Excluding those items, adjusted SG&A rose 7.3% and deleveraged by approximately 118 basis points as a percentage of sales, largely because of lower comparable sales. Adjusted operating income was $548.3 million, and adjusted diluted earnings per share were $0.81.

Company cuts 2026 outlook Tractor Supply updated its fiscal 2026 guidance to reflect year-to-date performance and expectations for the remainder of the year. The company now expects:

Net sales growth of approximately 2.5% to 3.5%. Comparable store sales in the range of negative 1% to flat. Adjusted operating margin of 8.5% to 8.8%. Adjusted diluted EPS of $1.90 to $2.00. Barton said the company’s base case assumes modest sequential improvement in comparable sales in the second half as recent actions take hold and comparisons ease. However, he said guidance also reflects the possibility that current pressures persist.

For the second half, Barton said gross margin is expected to be below the prior year, with greater pressure in the third quarter than the fourth. Freight costs, including fuel, are expected to remain elevated, while tariff refunds are expected to provide less benefit than they did in the second quarter. The company also plans to open its 11th distribution center early in the fourth quarter, with start-up costs beginning in the third quarter and continuing into the fourth.

Pet strategy remains a focus Lawton said pet performance remains below where the company wants it to be, though trends improved sequentially from the first quarter and Tractor Supply continues to hold share. He said category resets are complete, including more localized assortments, greater exposure to premium nutrition and a stronger exclusive brand portfolio.

The company’s Freshpet rollout was in approximately 250 stores at the end of the second quarter, and Tractor Supply remains on track to expand it to at least 700 stores by year-end. During the question-and-answer portion of the call, Chief Merchant Seth Estep said more than 40% of Freshpet buyers were either new pet food buyers at Tractor Supply or reactivated buyers.

Tractor Supply also completed its acquisition of VIP Petcare during the quarter. Lawton said the acquisition adds relationships with about 1 million pets annually through a network of 2,500 veterinarians across 39 states and helps connect veterinary services, prescriptions and products across physical and digital channels.

The company is also moving to improve its value proposition through its “unbeatable price” campaign, clearer everyday value messaging and targeted promotions. Estep said customer survey results showed a roughly 180-basis-point year-over-year improvement in customers’ price-value perception of Tractor Supply, with sequential improvement in June and stronger results in July.

Petsense closures and capital reallocation Tractor Supply said it will close approximately 75 underperforming Petsense stores following a review of the business. Lawton said in response to an analyst question that those locations have negative four-wall cash flow, and that closing them will allow the company to redeploy capital into the core business.

Lawton said the remaining Petsense business is expected to be “strong” and profitable, while complementing the broader pet ecosystem that includes Allivet and VIP Petcare. He also said Petsense is not directly connected to the core Tractor Supply business and that the closures should not affect the company’s pet re-acceleration efforts in Tractor Supply stores.

The company also said it plans to open approximately 85 to 90 new stores in 2027, compared with a previous expectation of 100 new stores. Lawton said capital will be redeployed toward Project Fusion remodels, store relocations and Final Mile delivery.

Lawton described Project Fusion as one of the company’s most important initiatives to improve the existing store base, citing localization and expanded pet wash as elements contributing to performance. He also said Final Mile delivery remains a strong growth opportunity, with Tractor Supply completing as many Final Mile deliveries in the first half of 2026 as it did in all of 2025.

Long-term framework withdrawn Tractor Supply withdrew the long-term financial framework it introduced at its December 2024 Investor Day. Barton said the prior targets reflected the operating environment and assumptions at that time, but several underlying conditions have changed, including softer farm and ranch markets and pressure across key end markets.

“We no longer believe it is appropriate to anchor investors to the long-term financial algorithm we previously outlined,” Barton said. The company plans to provide an updated long-term framework with its fourth-quarter 2026 earnings announcement.

Despite the revised outlook, Barton said Tractor Supply remains in a strong financial position, with healthy cash flow, a strong balance sheet and financial flexibility. He said share repurchase activity is expected to be toward the high end of the company’s original guidance range of $375 million to $450 million, and that Tractor Supply remains committed to returning capital to shareholders through a growing dividend.

About Tractor Supply (NASDAQ:TSCO)Tractor Supply Company NASDAQ: TSCO is a specialty retailer focused on products for the home, farm, ranch and outdoors. The company operates a network of physical retail locations complemented by an e-commerce platform, offering a one-stop source of supplies and equipment for customers with rural and suburban lifestyles. Its merchandise assortment targets a range of needs, from animal and livestock care to maintenance, outdoor power equipment, and seasonal products.

Product categories include animal feed and supplies, pet products, fencing and fencing supplies, equine equipment, lawn and garden tools, work clothing and footwear, and small agricultural and outdoor power equipment.

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

Should You Invest $1,000 in Tractor Supply Right Now?Before you consider Tractor Supply, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tractor Supply wasn't on the list.

While Tractor Supply currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cava Group (CAVA - Free Report) , which belongs to the Zacks Retail - Restaurants industry, could be a great candidate to consider.

This Mediterranean restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 25.49%.

For the last reported quarter, Cava came out with earnings of $0.2 per share versus the Zacks Consensus Estimate of $0.17 per share, representing a surprise of 17.65%. For the previous quarter, the company was expected to post earnings of $0.03 per share and it actually produced earnings of $0.04 per share, delivering a surprise of 33.33%.

Price and EPS Surprise

For Cava, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Cava has an Earnings ESP of +20.30% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

RESTON, Va.--(BUSINESS WIRE)--Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock”), a leading real estate company specializing in the development, acquisition, operation, and management of mixed-use, transit-oriented properties and data center developments, today announced that seven of its managed commercial properties have received 2026 Kingsley Excellence Awards, a prestigious recognition for delivering exceptional service to tenants and maintaining outstanding levels of overall tena.

When Space Exploration Technologies (SPCX +1.73%), also known as SpaceX, went public on June 12, only about 4.9% of its 13.2 billion shares were put up for sale, an unusually small public float.

But that percentage is set to more than double in August as many owners of pre-IPO shares will be partially released from the standard lock-up agreements.

This week, the space exploration, satellite, and artificial intelligence firm headed by Elon Musk announced that it will deliver its first earnings report as a public company on Aug. 4. As per the rules set out in the company's prospectus, two trading days later, pre-IPO shareholders will be able to sell some 911 million of their locked-up shares, bringing the float to about 12%. Even more shares will be released if the stock trades at 30% above its IPO price on five of the 10 trading days prior to the earnings release.

Image source: Getty Images.

Essentially, the 180-day lock-up agreement expires in tranches, with more shares set to be released in September, November, and December. Elon Musk and some other significant investors are subject to a one-year lock-up. Musk owns around 40% of SpaceX shares, though he controls more than 80% of the company's voting power through a dual-class share structure.

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And as SpaceX employees begin to liquidate their holdings to diversify out of the company's stock -- a normal occurrence after companies go public -- that selling could put downward pressure on the share price.

So, should you pick up a few SpaceX shares?

Well, that's a tricky question. After an initial bump in the first few days after the IPO, when investors bid the stock above $225, it has since retreated and now trades at around $121 a share, well below the $135 IPO price. Such price movement in an IPO stock is not unusual, but given that SpaceX is not yet profitable, it may take investors a while to regain their initial enthusiasm.

Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

MAPLETON, Utah, July 23, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced the opening of its newest community, Toll Brothers at Mapleton, in Mapleton, Utah. The community’s award-winning Kamas Farmhouse model home, recently featured in the 2026 Utah Valley Parade of Homes and honored with the prestigious Judge’s Choice award, is now open to the public, showcasing the elegance and craftsmanship for which Toll Brothers is known.

The Heights Collection at Toll Brothers at Mapleton is now open for sale, offering single-family homes with luxury designs ranging from approximately 4,000 to 5,200 square feet. These expertly crafted homes include 3 to 9 bedrooms, 2 to 7.5 bathrooms, and well-equipped kitchens. Select home designs offer optional walk-out basements and accessory dwelling unit (ADU) options, providing a separate private residence ideal for multigenerational living or rental income. Homes are priced from the upper $700,000s. The Crest Collection at Toll Brothers at Mapleton is anticipated to open for sale in fall 2026, with single-family homes from the low $900,000s.

Located in the heart of Mapleton, this community provides convenient access to outdoor recreation opportunities, Brigham Young University, and the city of Provo approximately 20 minutes away. Located within the desirable Nebo School District, Toll Brothers at Mapleton is surrounded by breathtaking views and a charming small-town atmosphere.

Toll Brothers customers will experience one-stop shopping at the Toll Brothers Design Studio. The state-of-the-art Design Studio allows home shoppers to choose from a wide array of selections to personalize their dream home with the assistance of Toll Brothers professional Design Consultants.

"The Kamas Farmhouse model home represents the pinnacle of Toll Brothers luxury and design," said Josh Clark, Division President of Toll Brothers in Utah. "We are thrilled to offer home shoppers the opportunity to tour this award-winning model home and discover the exceptional quality and personalization options available at Toll Brothers at Mapleton."

The Sales Center for Toll Brothers at Mapleton is located at 786 W Sugar Maple Drive in Mapleton. For more information on Toll Brothers at Mapleton, or to schedule a tour, call 800-289-8655 or visit TollBrothers.com/UT.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol “TOL.” Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.

Toll Brothers was named the #1 Most Admired Home Builder in Fortune magazine’s 2026 list of the World’s Most Admired Companies®, the ninth year the Company has achieved this honor. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

From Fortune, ©2026 Fortune Media IP Limited. All rights reserved. Used under license.

Contact: Andrea Meck | Toll Brothers, Senior Director, Public Relations & Social Media | 215-938-8169 | [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2638e3d6-3241-4b0a-b620-777c111f614f

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/736eb730-f080-428d-9b2e-877745aa18a8

Sent by Toll Brothers via Regional Globe Newswire (TOLL-REG)

After 15 years running Apple (AAPL -1.55%), Tim Cook will hand the CEO role to hardware chief John Ternus on Sept. 1, with Cook staying on as executive chairman. Ternus is a 25-year Apple veteran who helped launch the iPad and AirPods, so this is a carefully planned insider handoff, not a shake-up.

Here are three things Apple investors can reasonably expect from the leadership change.

Image source: Getty Images.

1. Continuity, not a revolution Apple did not hire an outsider with a mandate to tear things up. Ternus has spent his entire career inside Apple, and Cook will remain as executive chairman to smooth the transition. Expect the strategy, the disciplined supply chain, and the capital-return program to carry on largely unchanged in the near term.

Cook is an operations master; Ternus is an engineer who ran hardware for the iPhone, iPad, Mac, and Watch. That suggests a CEO with a sharper instinct for the products themselves, which could mean more aggressive bets on new hardware like foldable devices, smart glasses, and AI-infused gadgets.

2. Pressure to fix Apple's AI story This is the big one. Apple has been widely seen as lagging in artificial intelligence (AI), with Siri and Apple Intelligence both underwhelming users and investors. Ternus inherits the job of making Apple a credible AI player, likely by leaning on its strength in on-device AI and custom silicon. How he handles this will define his tenure.

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3. Steady shareholder returns Don't expect the cash machine to slow down. Apple's massive buybacks and growing dividend should continue, and the real profit engine, its high-margin services business, keeps expanding. In the near term, watch iPhone gross margins, which some view as a key signal of financial health.

Ternus takes over with the stock near all-time highs, but that cuts both ways. Expectations are elevated, so every early decision and product launch will face intense scrutiny, and the share price could be volatile as investors judge whether he can innovate or merely maintain. New CEOs are rarely given much patience.

The takeaway for investors The handoff from Cook to Ternus looks about as smooth as a leadership change at a multitrillion-dollar company can be, which should reassure long-term shareholders. The real questions are about the future, not the transition: Can Ternus close Apple's AI gap and reignite hardware innovation, while protecting the margins and cash returns that investors prize?

I would treat September as the start of a show-me period rather than a reason to buy or sell, and judge the new CEO by his products, not his first press release.

Meta CEO Mark Zuckerberg is pushing back against AI doomerism, sharing an assertively optimistic outlook on the future of the tech and arguing his company’s new tools will only aid its goal of connecting the world.

A Facebook video posted from his account takes aim at narratives that portray artificial intelligence as a danger to society, showing clips of fear-mongering headlines on a laptop – and then cutting to images of a child playing with a butterfly and friends sitting by a waterfall.

“Some people will have you believe AI will make us less connected. That it’s gonna leave us behind. We couldn’t disagree more,” a narrator says. “Call us optimists. Call us dreamers. Just as we’ve always done, we’re betting on people.”

Meta CEO Mark Zuckerberg on Thursday shared an emphatically optimistic outlook on the future of AI. Bloomberg via Getty Images “We bet on people when we connected you to the ones you lost touch with and again when we connected you to the ones you couldn’t be near,” the message continues. “Twenty-two years and 3.5 billion people later, we’re doubling down, because while technology will change, our intention behind it never will.”

The ad also promises to stay true to Meta’s mission of providing free, accessible access to social media – a notable pledge as major tech companies, including Meta, have tested potential subscription plans for AI chatbot users.

“Meta has always believed in giving people the power to share, connect, and shape your world in the ways you want,” Zuckerberg wrote in a caption for the video. 

“As we enter this next wave with AI, we continue to believe the future is for everyone. We’re focused on giving every person the tools to reach your full potential and making sure the benefits of technology are distributed to everyone.”

A Meta spokesperson confirmed the new video is just the first release as part of a broader campaign over the coming months to articulate Meta’s optimistic AI vision.

It’s a stark contrast to other industry bigwigs who have been sounding the alarm over potential threats, warning ultra-powerful chatbots could create an “AI doomsday” situation.

On Tuesday, OpenAI revealed that an experimental model it built went rogue during an internal cybersecurity test – hacking rival AI developer Hugging Face in an “unprecedented cyber incident.”

Meta pledged to stick to its mission of providing free, accessible access to social media. REUTERS During the stress test, researchers switched off many of the safeguards that typically prevent its AI from carrying out dangerous hacks, but the bot became “hyperfocused” on completing its assignment and went “to extreme lengths” to do so, the company said.

OpenAI said it has since tightened up its security measures for future testing, but AI safety advocates said the shocking hack should serve as a wake-up call for companies rushing to get the most powerful models to market the quickest.

Anthropic’s advanced Mythos chatbot also sparked fears in June after it reportedly sniffed out vulnerabilities in highly secure US government systems within just a few hours, though that does not necessarily mean the bot would be able to exploit those sensitives within that timeframe.

Some critics have dismissed the grim statements as marketing.

Others have railed against AI over concerns it could cause mass layoffs and displace droves of American workers, especially entry-level employees.

So far this year through June, nearly a third of all job cuts have hit the tech sector – and AI came in as the leading reason for layoffs in June for the fourth month in a row, according to the most recent report from Challenger, Gray & Christmas.

Since 2023, when AI first emerged as a driving force in layoffs, the new tech has been cited in 173,568 job cut announcements, according to Challenger.

Proponents of AI have said the new tech could temporarily lead to job displacement, but that it will also create new jobs in the long-term.

Tesla (TSLA) and Alphabet GOOGL shares led a broad market selloff on Thursday after investors reacted to higher artificial intelligence spending, sending the Nasdaq Composite down about 2.5% and the S&P 500 lower about 1.5%, while rising Middle East tensions pushed Brent crude close to $100 a barrel.

Tesla fell about 12% after reporting quarterly earnings that missed profit expectations despite stronger revenue, while Alphabet dropped roughly 7% after lifting its 2026 capital expenditure outlook to as much as $205 billion. The decline weighed on major indexes, with other large-cap technology stocks also trading lower.

Alphabet said it plans to increase spending on AI infrastructure as demand for computing capacity continues to grow. Separately, the company also faced a roughly $1 billion European Union fine tied to its search business, adding to investor concerns.

Oil prices extended recent gains after reports that Iran-backed Houthi forces attacked two Saudi oil tankers. Brent crude climbed more than 6% to nearly $100 per barrel, while U.S. benchmark West Texas Intermediate rose about 5%.

Higher energy prices also lifted Treasury yields as investors reassessed inflation and interest-rate expectations. The yield on the benchmark 10-year Treasury note rose to its highest level since January 2025, while traders increased expectations for potential Federal Reserve rate hikes over the coming months.

The silhouette of Elon Musk and Tesla logo are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesFrance cited safety concerns over Tesla FSD in its current formThe Netherlands provisionally approved FSD on Dutch roadsBelgium, Denmark, Estonia and Lithuania followed suit ahead ​of a possible EU vote this fallAMSTERDAM, July 23 (Reuters) - France opposes the use of Tesla's (TSLA.O), opens new tab Full Self-Driving (FSD) driver assistance software in its current form ​on roads in the European Union due to safety concerns, its transportation ​minister said.

The French stance on the FSD software is the ⁠first public rejection by an EU government of a Dutch-led initiative to approve ​the technology for use throughout Europe.

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In a video statement released on Wednesday, Philippe ​Tabarot pointed to worries over speeding and driver inattention.

"In France, we believe that, while this system brings a number of technological advances, the safety tradeoffs are not yet sufficient to ​justify authorisation in its current form," he said.

Tabarot added that other European ​countries shared France's concerns regarding the software, though he did not name them.

Reuters reported in June ‌that Sweden ⁠may also oppose approval.

Tesla's FSD is a driver assistance system that can accelerate, brake, and steer a car, while its human driver remains ready to intervene.

The Netherlands' road authority RDW approved the technology for use on Dutch roads on ​a provisional basis in ​April, prompting Belgium, ⁠Denmark, Estonia and Lithuania to do the same in advance of a possible bloc-wide vote on the plan this ​fall.

The RDW could not immediately be reached for comment on ​Thursday.

FSD software ⁠is seen as a selling point and revenue-generator for Tesla, whose European registrations are gradually recovering following a slump last year.

Responding to Tabarot's remarks in a statement on ⁠X, ​Tesla CEO Elon Musk wrote that "delaying the approval ​of FSD in France will cost lives".

Tabarot said France is continuing technical discussions with the Netherlands and ​other EU countries over the technology.

Reporting by Toby Sterling; Editing by Joe Bavier

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

Shares in the YieldMax TSLA Option Income Strategy ETF (TSLY -13.43%) declined by 14.2% at 11:30 am today. The decline correlated with the fall in Tesla (TSLA -13.97%) shares following the release of its second-quarter earnings report. Here's the lowdown.

Why YieldMax Tesla Option Income Strategy ETF declined As the name suggests, the ETF uses option strategies to deliver returns to investors based on the performance of Tesla's stock. It gains long exposure to the stock by buying call options and selling put options – both positions reward bullishness. At the same time, the ETF's managers also sell call options, which "generally have a strike price that is approximately 0%-15% above the then-current share price of the Underlying Security." This is a bearish strategy that rewards the ETF as long as the price of the stock doesn't rise significantly.

NYSEMKT: TSLYTidal Trust II - YieldMax Tsla Option Income Strategy ETF

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The combination of strategies gives the ETF significant income generation in long periods of relatively low volatility for Tesla stock, particularly when Tesla stock is gently rising, but can underperform Tesla stock in sharply rising periods due to selling call options.

It does not do well when the stock falls sharply, and that's what happened today.

It would be remiss to discuss the ETF without mentioning why Tesla stock fell today. Simply put, Tesla's gross and profit margins came in lower than expected due to rising costs (both for goods sold and operating expenses). More importantly, CEO Elon Musk's commentary on the robotaxi rollout made it abundantly clear that it will be a measured, safety-first rollout that is unlikely to scale massively until the latest version of full self-driving (FSD) software, v15, is validated and released.

Image source: The Motley Fool.

That dose of reality is likely causing previously overly optimistic investors to sell the stock. That's the bad news, but the good news is it might reset expectations for the rollout and ultimately allow long-term bulls to buy stock cheaper.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

ToplineElon Musk’s fortune was cut by more than $18 billion on Thursday amid the worst intraday selloff in Tesla shares in more than a year, following the automaker’s earnings report that disappointed Wall Street, as analysts called for Musk’s firm to bring “tangible” results for its robotics and robotaxi businesses.

The automaker reported earnings that disappointed Wall Street, with plans to spend billions more on AI.

Getty Images

Key FactsShares of Tesla plunged 14.1% as of Thursday afternoon, pacing what would be the largest single-day decline for the stock since June 5, 2025 (14.2%).

That drop in Tesla’s share price lowered Musk’s net worth by $18.6 billion to $731.7 billion, even as he remains the world’s richest person ahead of Google co-founder Larry Page ($263.8 billion) and Amazon’s Jeff Bezos ($245.4 billion).

Tesla's slump follows the company’s quarterly earnings report on Wednesday, in which the automaker reported $28.2 billion in revenue, beating consensus analyst estimates of $27.2 billion, according to FactSet, while posting earnings that fell well below projections of 55 cents at 33 cents.

Chief financial officer Vaibhav Taneja, during Tesla’s earnings call, reiterated plans for the automaker to spend $25 billion this year and more in the coming years.

That brought some criticism from Wall Street: Morgan Stanley analysts said in a note that while Tesla’s spending is a “necessary investment,” the company will need to present “tangible” milestones for its robotaxi and Optimus programs.

Canaccord Genuity analysts echoed that sentiment, writing the firm wanted to see meaningful robotaxi deployments over the next six months as Tesla ramped up its AI strategy.

surprising factCanaccord analysts noted they hoped to see momentum around a merger between Tesla and SpaceX. In Tesla’s earnings call, Musk deflected a question about a possible tie-up following months of speculation: “We can’t talk about, you know, combining companies and that kind of thing on an earnings call—it has got to be done with the appropriate process.” Musk did note there is “more and more overlap” between his two firms, pointing to Starlink’s integration in Cybertrucks, and TeraFab, a proposed AI chip manufacturing venture between Tesla, SpaceX and the former xAI, which is now a SpaceX subsidiary.

what to watch forSpaceX will launch its 13th test flight of the Starship rocket on Thursday, its first since the rocket maker’s initial public offering last month. An earlier launch scheduled for last week was aborted after Musk said some of the rocket’s engines failed to start. That pushed SpaceX shares down by more than 4%, lowering Musk’s net worth by more than $45 billion.

contraSpaceX shares were largely flat on the day, down only 0.1% as of around 1:45 p.m. EDT, having little impact on Musk’s fortune.

key backgroudnMusk’s fortune has fallen more than $700 billion from its peak, which came shortly after SpaceX’s IPO. A trading debut for his SpaceX made him a trillionaire, and surging shares in the rocket maker boosted him to a high of $1.45 trillion before a weekslong selloff that has since pushed his net worth below pre-IPO levels. The latest dip in Tesla shares followed speculation from shareholders about whether Musk would reveal updates for Tesla’s Optimus robotics or robotaxi plans, with submitted questions ahead of the automaker’s earnings asking why its robotaxi business had been “stalled.” Another question posed: “What is keeping Tesla back from accomplishing these short-term goals that they’ve set for themselves?”

further readingForbesMusk Says Tesla And SpaceX ‘Can’t Talk About’ Merging On Earnings Call—But Here’s What He Did SayBy Ty Roush

Tesla Inc. (NASDAQ:TSLA) shares are down sharply after the company’s earnings update, putting the stock on track for its worst session in more than a year.

Tesla was down 14% in the session, a move that would mark its worst day since June 2025.

Tesla’s Q2 Earnings MissThe decline follows a disappointing second-quarter earnings report. On Thursday, Tesla reported an adjusted earnings per share of 33 cents, falling short of the 50 cents expected by analysts.

Former Tesla president Jon McNeill noted that these discounts, combined with a significant drop in regulatory credit revenue, have squeezed margins.

Analysts Adjust Tesla Price TargetsTechnical Analysis

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Key Takeaways Coca-Cola is expected to report Q2'26 revenue and EPS growth, with results due on July 28.KO's all-weather strategy is supported by pricing actions, organic growth and global value share gains.KO faces volume pressure in North America and Europe as value-conscious consumers weigh on demand. The Coca-Cola Company (KO - Free Report) is slated to report second-quarter 2026 earnings on July 28, before the opening bell. The company is expected to register year-over-year top- and bottom-line growth when it posts second-quarter numbers.

The Zacks Consensus Estimate for revenues is pegged at $13.1 billion, implying 4.2% growth from the year-ago quarter's reported figure. The consensus estimate for earnings is pegged at 92 cents per share, indicating 5.6% growth from the prior-year quarter’s reported figure. The consensus mark for earnings has been unchanged in the past 30 days.

The Atlanta, GA-based company has been reporting steady earnings, as evidenced by its positive earnings surprise trend in the trailing 12 quarters. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.5%, on average. On the last reported quarter’s earnings call, the company registered an earnings surprise of 6.2%. Given its positive record, the question is, can KO maintain its momentum?

Q2 Earnings Whispers for Coca-ColaOur proven model does not conclusively predict an earnings beat for KO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Coca-Cola currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

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

Key Trends in Focus Ahead of KO's Q2 Earnings ReleaseCoca-Cola’s second-quarter 2026 results are expected to reflect the strength of its all-weather strategy and the resilience of its global portfolio. KO’s momentum has been fueled by solid organic revenue growth, effective pricing actions and continued gains in global value share across the non-alcoholic RTD category. The company’s ability to command premium pricing underscores the strength of its brand portfolio and execution discipline. Strategic revenue growth management and affordability initiatives are helping balance pricing with consumer retention.

Our model predicts organic revenue growth of 3.9% and comparable EPS to rise 6.5% year over year to 93 cents for the second quarter.

KO’s ongoing focus on innovation, digital transformation and marketing excellence further sharpens its competitive edge, with breakthrough product launches and culturally resonant campaigns elevating brand relevance. The company’s refreshed marketing model blends digital, live and in-store touchpoints to build stronger, more personalized consumer connections. Margin expansion, driven by productivity gains, easing inflation and disciplined revenue growth management, reinforces its financial durability.

Looking ahead, Coca-Cola expects to maintain strong margin discipline, supported by productivity gains, favorable price/mix dynamics and gradual easing of inflationary pressures. Our model predicts the adjusted operating margin to expand 30 bps year over year to 35% in the second quarter, led by a flat adjusted gross margin rate and a 40-bps improvement in the SG&A expense rate.

For second-quarter 2026, comparable revenues and EPS are expected to include currency tailwinds of 1% and 3%, respectively. Both metrics are also estimated to include a 1% headwind from acquisitions and divestitures.

However, Coca-Cola is expected to have faced notable volume pressure in key markets, reflecting evolving consumer behavior and economic challenges, particularly in North America and Europe. The company is witnessing soft volumes as low-income consumers remain value-conscious amid inflationary pressures. These widespread volume challenges signal waning consumer momentum, particularly in lower-income groups.

While Coca-Cola continues to rely on price/mix gains to support revenues, the persistence of volume softness raises concerns about sustained demand, making recovery efforts in lagging regions even more critical.

Coca-Cola’s Price Performance & ValuationKO shares have risen as much as 17.6% year to date. The stock has outpaced the broader industry and the Consumer Staples sector’s 10.9% and 8.4% growth, respectively. KO stock has also outperformed the S&P 500 index, which has risen 9.5% in the same period.

KO Stock’s YTD Performance
Image Source: Zacks Investment Research

Coca-Cola stock has outperformed its key competitor, PepsiCo Inc. (PEP - Free Report) , which has declined 5.4% year to date. Coca-Cola has also outpaced Keurig Dr Pepper Inc.’s (KDP - Free Report) growth of 7.9% but underperformed Monster Beverage Corporation’s (MNST - Free Report) rally of 24.8% in the same period.

From the valuation standpoint, KO trades at a forward 12-month P/E multiple of 24.3X, exceeding the industry average of 19.01X and the S&P 500’s average of 20.85X. Coca-Cola’s valuation appears quite pricey.

Image Source: Zacks Investment Research

KO undoubtedly commands a high valuation, reflecting its strong market positioning, brand power and long-term growth potential compared with other non-alcoholic beverage companies. However, we believe that its valuation is too stretched at this time.

Investment ThesisCoca-Cola remains a powerhouse in the beverage industry, commanding more than 40% of the global non-alcoholic beverage market. The company’s enduring success is driven by a formidable market presence, world-class marketing capabilities and a relentless focus on innovation. With a portfolio boasting more than 4,700 products and 500 brands, spanning sodas, juices, waters and energy drinks, Coca-Cola continues to reinforce its leadership.

KO’s dominant market share, broad product range and strategic emphasis on innovation and digital transformation position it well for sustained long-term growth. However, short-term headwinds, such as inflationary pressures, global macroeconomic uncertainties and unfavorable currency fluctuations, remain challenges to navigate.

ConclusionCoca-Cola enters its second-quarter earnings release with solid momentum, supported by pricing strength, organic revenue growth, productivity gains and disciplined margin management. Its powerful brand portfolio, innovation pipeline and global reach continue to reinforce long-term resilience. However, persistent volume weakness in North America and Europe, particularly among lower-income consumers, remains a key concern.

The stock’s strong year-to-date rally and premium valuation leave limited room for disappointment. Although Coca-Cola’s fundamentals remain sound, investors may prefer to wait for clearer evidence of volume recovery and sustained earnings momentum before considering fresh exposure at the current valuation levels following earnings.

Alphabet (GOOG -6.73%) (GOOGL -6.80%) stock tumbled 7.4% through 11:20 a.m. ET Thursday despite absolutely steamrolling analyst forecasts for Q2 earnings. Expected to earn just $2.88 per share on $116.5 billion in sales, Alphabet reported profits of $9.11, and sales of $119.8 billion -- both well ahead of expectations.

So why is Alphabet stock crashing in response?

Image source: Google.

Alphabet Q2 earnings Revenue ran ahead 24% year over year , led by Google Cloud growth of 84%. Google Services revenues were up only 15%, however, with Google Search up 17%, and YouTube Ads up 13%. Earnings roughly tripled year over year.

CEO Sundar Pichai credited "AI infrastructure and AI solutions" in the company's Cloud business for the performance. It's no surprise, therefore, that Alphabet plans to double down on what's working, and management says it will increase capital investment in AI to somewhere between $195 billion and $205 billion this year (about $15 billion beyond previous predictions) -- and then spend even more hiring AI computing capacity from third parties.

And that didn't please investors one bit.

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What it means for Alphabet stock Alphabet's tremendous cash outlays for AI may be delivering the revenue and GAAP profit growth investors like to see, but they're devastating the company's cash flow statement, which showed $5.8 billion in cash burn in Q2 -- versus $5.3 billion in positive FCF a year ago.

The "good" news is that if Alphabet invests "only" $205 billion in building out its AI business this year, then forecasts for $210 billion in cash from operations will return the company to about $5 billion in positive FCF by the end of the year.

The bad news: GAAP profit is expected to be $225 billion this year. And almost none of that will be backed up by real free cash flow.

Caveat investor.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

Investment Thesis

Negative FCF is only temporary

Image credit: Financial Times (Data: S&P Capital IQ, Bloomberg)

Consequently, in Q2 2026, GOOGL’s CapEx reached a record $44.9 billion, while growth to $50.4 billion is projected for the following quarter. At the same time, in one year, quarterly CapEx will reach $65.2 billion, whereas FCF will be -$1.2 billion.

Image credit: Author

Also, it’s worth noting that the company’s total debt increased from $90.5 billion to $112.7 billion. But this rise in debt is offset by an increase in cash reserves from $126.8 billion to $242.4 billion. However, this can hardly be called a positive development, since the increase in cash reserves was achieved by diluting shareholders’ equity. It is a significant shift for a company that frequently engages in share buybacks.

Image credit: Author

According to GOOGL’s CEO, though, no further stock offerings are expected. The next round of investments will be financed through operating cash flow, reserves, and debt. A big chunk of the investments is aimed at meeting the strong growth in demand for Google Cloud, which saw its order backlog increase from $460 billion to $514 billion.

Risks exist, but they will not alter the trajectory of development

The current upward revision to the CapEx forecast, though, is less a result of the need to scale the company’s AI infrastructure and more a result of rising prices for the equipment and components used to build the data centers themselves. The manufacturers of GPUs, TPUs, DRAM, optical and copper interconnects, as well as other components, are the beneficiaries of Alphabet’s latest report.

This means, for GOOGL, a definite increase in the cost of services and higher CapEx to expand the necessary AI infrastructure. Because of this, the company’s operating margin rose to 34%, even though many had predicted it would reach 40%. So, the temporary decline in business margins is not a hypothetical risk, it’s a real one.

Image credit: Author

Conclusion

Hence, key takeaways for investors include not only maintaining the “Buy” rating on GOOGL shares but also the emergence of a strong signal for the semiconductor and AI infrastructure markets. The shortage of components is driving up their prices, increasing margins for manufacturers. Therefore, a large portion of my portfolio consists of the aforementioned companies and other firms benefiting from the AI supercycle.

Analyst’s Disclosure: I have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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@ProsperTradingAcademy's Charles Moon talks all about tech for his Big 3 picks Thursday. He sees opportunity in Alphabet (GOOGL) as the stock sells off after earnings, compares SK Hynix's (SKHY) setup to the Mag 7 giant's earnings reaction, and sees IREN (IREN) as a high-risk, high-reward opportunity.

Key Takeaways Alphabet beat estimates, but rising AI capex overshadowed strong Cloud growth.Alphabet's Cloud revenues jumped 82% and operating income surged 212%.Alphabet lifted its 2026 capex outlook to $195-$205B, raising investor concerns. Alphabet (GOOGL - Free Report) came up with second-quarter 2026 earnings on July 22, after market close. Earnings of $9.11 per share surpassed the Zacks Consensus Estimate of $2.88 by a staggering 216.32%. The bottom line marked a remarkable improvement of 294.37% from earnings of $2.31 per share recorded in the same period last year.

The tech giant has a Zacks Rank #1 (Strong Buy) and a Momentum Score of A. As quoted on the tech giant’s earnings release, Alphabet and Google CEO Sundar Pichai described the June 2026 quarter as "amazing."

He also highlighted the growing adoption of Gemini Enterprise, noting that nearly 90% of the Fortune 100 companies are now using it. Pichai noted that Gemini models now process 22 billion API tokens per minute and the Gemini app boasts 950 million monthly active users.

However, GOOGL shares declined about 5% in pre-market trading on July 23. Despite delivering better-than-expected results, investors reacted negatively to the company's decision to raise its capital expenditure for 2026.

The move reinforces a broader trend across the technology sector, where investors have grown increasingly concerned about the escalating AI-related spending by Big Tech and increasing skepticism about the near-term payoff from AI investments. The tech giant's shares also came under pressure in pre-market trading amid investor concerns over reports of continued delays to its next flagship AI model, Gemini 3.5 Pro.

Snapshot of Q2 EarningsAlphabet posted revenues of $103.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $101.28 billion by 2.31%. This marked a substantial increase of 26.79% from the year-ago quarter.

Alphabet’s net income for the quarter saw a substantial surge of about 297.59% from the year-ago quarter to $112.11 billion. The tech giant’s operating income for the quarter was $40.77 billion, which marked an increase of 30.38% from the year-ago quarter.

Segment SnapshotsSecond-quarter revenues from Google advertising reached $81.63 billion, up 14.42% from the year-ago quarter. The segment includes Google Search & other, YouTube ads and Google Network. Revenues from Google Search & other, which reached $63.27 billion in the second quarter, marked a rise of 16.76% from $54.19 billion in the year-ago quarter, while YouTube ad revenues increased 12.85%, to reach $11.06 billion in the second quarter.

Revenues from Google Services, which includes Google advertising and Google subscriptions, platforms and devices, increased 14.53% from the year-ago quarter, reaching $94.54 billion. Operating income from the segment reached $39.54 billion for the quarter ended June 2026, marking an increase of 19.6% from the prior-year figure of $33.06 billion.

Alphabet’s Google Cloud business witnessed a substantial surge, with operating income increasing to $8.81 billion, an impressive 211.89% increase from the prior-year figure of $2.83 billion. Revenues from the Cloud segment also witnessed a substantial rise of 81.79% year over year to $24.77 billion. The segment’s revenues surpassed the Zacks Consensus Estimate of $22.77 billion by 8.77%.

The rise in Google Cloud’s revenues was driven by an increase in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services.

Capex Surge Remains a Key Investor ConcernAlphabet reported capital expenditures of $44.92 billion for the quarter ended June 2026, nearly doubling from $22.45 billion in the year-ago quarter. Through the first half of 2026, the company's capital expenditures totaled $80.59 billion.

As quoted on a Reuters article, according to the tech giant’s CFO Anat Ashkenazi, Alphabet also raised its full-year capital expenditure outlook. Speaking on a conference call with analysts, Ashkenazi stated that the company now forecasts capex of $195 billion to $205 billion this year, up from its previous guidance of $180 billion to $190 billion for 2026.

Ashkenazi reaffirmed that Alphabet expects another meaningful step-up in capital expenditures in 2027. According to the abovementioned Reuters article, despite being one of the best-performing Magnificent Seven stocks this year, Alphabet's shares have come under pressure since late April amid concerns over delays to Gemini, high-profile executive departures and rising regulatory scrutiny.

Alphabet’s Stock OutlookAlphabet currently has an average brokerage recommendation (ABR) of 1.25 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 55 brokerage firms. The current ABR compares to an ABR of 1.29 a month ago based on 55 recommendations.

Of the 55 recommendations deriving the current ABR, 46 are Strong Buy and four are Buy. Strong Buy and Buy, respectively, account for 83.64% and 7.27% of all recommendations. A month ago, Strong Buy made up 81.82%, while Buy represented 7.27%, indicating that the majority of the analysts remain bullish.

Based on short-term price targets offered by 51 analysts, the average price target for Alphabet comes to $434.82, ranging from a low of $365.00 to a high of $515.00. The average price target represents an increase of 27.11% from the last closing price of $342.09 (as of market close on July 22).

ETFs to Explore

Here, we have highlighted ETFs with heavy exposure to Alphabet.

Global X PureCap MSCI Communication Services ETF (GXPC - Free Report) has an exposure of 31.45% to GOOGL.

VanEck Communication Services TruSector ETF (TRUC - Free Report) has an exposure of 14.28% to GOOGL.

Vanguard Communication Services ETF (VOX - Free Report) has an exposure of 14.4% to GOOGL.

Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) has an exposure of 14.28% to GOOGL.

iShares Global Comm Services ETF (IXP - Free Report) has an exposure of 12.22% to GOOGL.

A woman walks by a giant screen displaying the Google logo at an event at the Paris Google Lab on the sidelines of the AI Action Summit in Paris, Feb. 9, 2025. Credit: AP Photo/Thibault Camus, File The European Union on Thursday hit Google with a fine of 890 million euros ($1 billion) after it said the technology behemoth broke digital antitrust regulations by setting up Google Play and its ubiquitous search engine to corral consumers towards its own services and apps to the detriment of competitors.

It was the latest major crackdown on Big Tech by Brussels, which has led the world in reining in some of the world's largest companies from Silicon Valley to Beijing.

Google had recently lost its appeal of a $4.5 billion antitrust fine imposed for throttling competition and reducing consumer choice through the dominance of its mobile Android operating system.

The European Commission, the bloc's executive branch, said it was acting in the interest of consumers.

"The best products should succeed because they're better, not because they're owned by the company running the search engine. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut," said Teresa Ribera, the commission's Executive Vice President for Clean, Just and Competitive Transition.

Google's President of Global Affairs Kent Walker blasted the fine as "product degradation driven by a small group of self-serving complainants" that will negatively impact European businesses and consumers.

He said that the EU's Digital Markets Act forces Google "to strip away real-time search features Europeans love—like instant pricing and direct availability for hotels, flights, and restaurants—and dismantle safety protections on Google Play."

"In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers," European Commission spokesperson Thomas Regnier said.

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