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Revenues of $2.5 billion, up 8.2% YoY

Net income of $130.4 million; Diluted EPS of $5.84, up 3.7% YoY

Adjusted net income of $171.0 million; Adjusted diluted EPS of $7.66, up 11.8% YoY

EBITDA of $328.8 million and EBITDA margin of 13.3%

Contract awards of $4.8 billion and book-to-bill of 2.0x

Raising fiscal year 2027 guidance for Revenue, Adjusted net income, and Adjusted EPS;
reaffirming guidance for other financial metrics

, /PRNewswire/ -- CACI International Inc (NYSE: CACI) announced results today for its fiscal first quarter ended September 30, 2026.

"Our first quarter results represent a strong start to fiscal year 2027, highlighted by revenue and EBITDA growth, strong EBITDA margin, and healthy free cash flow. We also delivered a 2.0x book-to-bill and another quarter of double-digit funded backlog growth. Our mission proximity, software-defined approach, ability to invest ahead of customer need, and superior execution continue to differentiate CACI and drive our performance," said John Mengucci, CACI President and Chief Executive Officer. "Based on our results, large and growing backlog, and healthy pipeline, we are raising our fiscal year 2027 revenue and earnings profit outlook while reaffirming guidance for other financial metrics. We remain confident in our ability to drive long-term growth in free cash flow per share and deliver exceptional value for our customers and shareholders."

First Quarter Results

Three months ended

(in millions, except earnings per share and DSO)

9/30/2026

9/30/2025

     % Change1     

Revenues

$     2,474.6

$     2,287.6

8.2 %

Income from operations

$        247.5

$        212.3

16.6 %

Net income

$        130.4

$        124.8

4.5 %

Adjusted net income, a non-GAAP measure2

$        171.0

$        151.7

12.7 %

Diluted earnings per share

$          5.84

$          5.63

3.7 %

Adjusted diluted earnings per share, a non-GAAP measure2

$          7.66

$          6.85

11.8 %

Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure2

$        328.8

$        268.6

22.4 %

Net cash provided by operating activities excluding MARPA, a non-GAAP measure2

$        144.8

$        160.0

(9.5) %

Free cash flow, a non-GAAP measure2

$        133.5

$        143.0

(6.6) %

Days sales outstanding (DSO)3

59

56

(1)

Percentages are calculated using the underlying whole dollar amounts. Some percentages may vary slightly due to rounding.

(2)

This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information

regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release. 

(3)

The DSO calculations for three months ended September 30, 2026 and 2025 exclude the impact of the Company's Master Accounts Receivable Purchase Agreement

(MARPA), which was 7 days for both periods.

Revenues in the first quarter of fiscal year 2027 increased 8.2% year-over-year, including 2.1% organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share were driven by higher income from operations, partially offset by higher interest expense and a higher tax provision. The decrease in cash from operations, excluding MARPA, was driven primarily by higher working capital.

First Quarter Contract Awards
Contract awards in the first quarter totaled $4.8 billion, with approximately 61% for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity contracts. Some notable awards during the quarter were:

CACI was awarded a one-year plus four option periods award to support U.S. Central Command (USCENTCOM) and its mission partners across a demanding and rapidly changing mission environment. The award has a ceiling of $1.5 billion, of which CACI recognized $1.2 billion of award and backlog value based on current requirements in the first quarter of fiscal year 2027. Through Apollo, CACI will help USCENTCOM make faster decisions and coordinate more effectively across commands and partners. The company's capabilities will enhance planning, analysis, information integration, and mission execution across the command's area of responsibility. CACI will help commanders turn information into actionable insight and operate with greater confidence in contested or denied territories, allowing warfighters to out-compete adversaries in the information environment.
CACI was awarded a five-year, $1.6 billion task order to continue to help the U.S. Army Special Operations Command (USASOC) stay ahead of emerging threats across every domain. CACI recognized $1.2 billion of award and backlog value based on current requirements in the first quarter of fiscal year 2027. Through the Special Operations Forces Emerging Threats, Operations, and Planning Support 2 (SOFETOPS 2) program, CACI will continue providing critical operational planning and support that strengthens USASOC's ability to act decisively and work seamlessly with its strategic partners wherever the mission requires.
CACI was awarded a five-year task order valued at up to $281 million by the U.S. Navy's Naval Surface Warfare Center (NSWC) Crane to support in strengthening and advancing next-generation electromagnetic warfare capabilities across the Department of War (DoW).
CACI was awarded a 12-month extension to provide information technology system development, sustainment, and modernization to a government customer.
CACI was awarded a five-year task order valued at up to $185 million to support the U.S. Army's Program Manager Expeditionary Energy and Sustainment Systems (PM E2S2). CACI will develop and integrate technologies that help soldiers sustain operations in contested and austere environments.
CACI was awarded a task order ceiling increase valued at up to $153 million to continue providing unmanned systems support to the U.S. Army Combat Capabilities Development Command (DEVCOM) – Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center to enable warfighter rapid response to current and emerging threats.
CACI was awarded a five-year task order to modernize financial management systems for a federal customer.
CACI was awarded a three and a half-year contract to provide communications sustainment and modernization for a government customer.
CACI was awarded a four-year task order valued at up to $146 million to support the Naval Surface Warfare Center Carderock Division (NSWCCD) in advancing next-generation maritime capabilities for the U.S. Navy.
CACI was awarded a five-year contract to sustain and modernize financial management systems for a Department of War customer.

Total backlog as of September 30, 2026, was $34.0 billion compared with $33.9 billion a year ago, an increase of 0.3%. Funded backlog as of September 30, 2026, was $6.2 billion compared with $5.4 billion a year ago, an increase of 14.8%.

Additional Highlights

CACI was selected as one of 15 awardees to deliver technology that will defend U.S. interests against adversarial threats for the U.S. Space Force. Under the National Space Test and Training Complex (NSTTC) Innovative Technology & Engineering – Space Test and Range (NITE‑STAR) contract, CACI will deliver critical technology advancements that strengthen and modernize the test and training architectures required for realistic operations.
CACI officially opened the CACI Manufacturing Center of Excellence for Defense Electronics in the Greater Rochester, New York, area, marking the next chapter in the company's long-term investment in the region and continued transformation into a technology-first national security company. The additional 61,000-square-foot facility increases CACI's manufacturing space by more than 300% and will serve as a hub for the development, test, assembly, and delivery of advanced electronic warfare technologies that give U.S. forces a decisive advantage in contested environments.
CACI announced that Marcie Small has been appointed Executive Vice President and Chief Human Resources Officer. Small succeeds Angie Combs, who retired from the company after more than seven years of service. With more than 25 years of leadership experience in human capital management, Small has a proven track record of modernizing talent strategies, developing leaders, and building high-performing workforces.
CACI announced the launch of Good Dogs for Great Americans, the company's signature philanthropy program dedicated to helping veterans regain independence through specially trained service dogs. In partnership with the Washington Capitals and America's VetDogs, the program turns defense on the ice into life-changing support for those who defended our nation.

Fiscal Year 2027 Guidance
The table below summarizes our fiscal year 2027 guidance and represents our views as of October 21, 2026.

(in millions, except earnings per share)

Fiscal Year 2027

Current guidance

Prior guidance

Revenues

$10,700 - $10,900

$10,650 - $10,850

Adjusted net income, a non-GAAP measure1

$740 - $760

$735 - $755

Adjusted diluted earnings per share, a non-GAAP measure1

$33.18 - $34.08

$32.96 - $33.86

Diluted weighted average shares

22.3

22.3

Free cash flow, a non-GAAP measure2

At least $900

At least $900

(1)

Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding

intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for

measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and

reconciliation to the GAAP measure included below in this release.

(2)

Free cash flow is defined as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. This non-GAAP

 measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.

Conference Call Information
We have scheduled a conference call for 8:00 a.m. Eastern time Thursday, October 22, 2026, during which members of our senior management will be making a brief presentation focusing on first quarter results and operating trends, followed by a question-and-answer session. You can listen to the webcast and view additional information provided in the accompanying slide exhibits on CACI's investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI's investor relations website at http://investor.caci.com/. 

About CACI
CACI International Inc (NYSE: CACI) is a technology-first national security company that expands the limits of national security through innovation, discipline, and operational excellence. We deliver advanced technologies that help our customers move faster, operate more efficiently, and anticipate and defeat evolving threats. Our 27,000 talented employees and strong culture drive our success and have earned CACI recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 500™, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit caci.com.

There are statements made herein that do not address historical facts and, therefore, could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics; legal, regulatory, and political change from successive presidential administrations that could result in economic uncertainty; changes in U.S. federal agencies, current agreements with other nations, foreign events, or any other events which may affect the global economy, including the impact of global pandemics; the results of government audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other governmental entities with cognizant oversight; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.

Corporate Communications and Media:  

Investor Relations:

Gino Bona, Executive Vice President, Corporate Communications          

George Price, Senior Vice President, Investor Relations

(571) 597-2787, [email protected]

(703) 841-7818, [email protected]

CACI International Inc

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

Three months ended

     9/30/2026     

     9/30/2025     

     % Change     

Revenues

$ 2,474,597

$ 2,287,623

8.2 %

Costs of revenues:

Direct costs

1,597,689

1,547,194

3.3

Indirect costs and selling expenses

550,113

473,856

16.1

Depreciation and amortization

79,267

54,298

46.0

Total costs of revenues

2,227,069

2,075,348

7.3

Income from operations

247,528

212,275

16.6

Interest expense and other, net

73,240

46,173

58.6

Income before income taxes

174,288

166,102

4.9

Income taxes

43,921

41,292

6.4

Net income

$   130,367

$   124,810

4.5 %

Basic earnings per share

$         5.90

$         5.67

4.1 %

Diluted earnings per share

$         5.84

$         5.63

3.7 %

Weighted-average basic shares outstanding

22,100

21,994

0.5 %

Weighted-average diluted shares outstanding               

22,316

22,166

0.7 %

CACI International Inc

 Consolidated Balance Sheets (Unaudited)

(in thousands)

     9/30/2026     

     6/30/2026     

ASSETS

Current assets:

Cash and cash equivalents

$      279,389

$      191,756

Accounts receivable, net

1,722,873

1,705,087

Prepaid expenses and other current assets

428,943

364,502

Total current assets

2,431,205

2,261,345

Goodwill

6,486,111

6,484,456

Intangible assets, net

2,018,764

2,072,991

Property, plant, and equipment, net

386,547

397,161

Operating lease right-of-use assets

390,617

381,980

Supplemental retirement savings plan assets

103,874

104,878

Other assets

130,417

116,833

Total assets

$  11,947,535

$  11,819,644

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$       46,750

$       46,750

Accounts payable

463,031

521,669

Accrued compensation and benefits

263,877

284,602

Other accrued expenses and current liabilities

732,931

670,911

Total current liabilities

1,506,589

1,523,932

Long-term debt, net of current portion

4,789,313

4,854,759

Supplemental retirement savings plan obligations, net of current portion          

118,734

119,233

Deferred income taxes

407,454

376,580

Operating lease liabilities

447,236

431,769

Other liabilities

51,518

50,674

Total liabilities

7,320,844

7,356,947

Total shareholders' equity

4,626,691

4,462,697

Total liabilities and shareholders' equity

$  11,947,535

$  11,819,644

CACI International Inc

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

Three months ended

     9/30/2026     

     9/30/2025     

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$      130,367

$      124,810

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

Depreciation and amortization

79,267

54,298

Amortization of deferred financing costs

1,241

1,196

Stock-based compensation expense

21,711

14,691

Deferred income taxes

26,445

22,273

Other

3,077

—

Changes in operating assets and liabilities, net of effect of business acquisitions:

Accounts receivable, net

(17,797)

(15,967)

Prepaid expenses and other assets

(67,263)

(41,587)

Accounts payable and other accrued expenses

10,698

63,747

Accrued compensation and benefits

(20,346)

(41,443)

Income taxes

4,648

(11,456)

Operating lease liabilities, net

(9,725)

(1,418)

Long-term liabilities

(1,009)

1,921

Net cash provided by operating activities

161,314

171,065

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(11,359)

(17,014)

Acquisitions of businesses, net of cash acquired

5,000

15,800

Net cash used in investing activities

(6,359)

(1,214)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

1,211,500

541,000

Principal payments on borrowings

(1,278,188)

(682,688)

Proceeds from employee stock purchase plans

4,031

3,796

Repurchases of common stock

(4,406)

(4,085)

Payment of taxes for equity transactions

(71)

(261)

Net cash used in financing activities

(67,134)

(142,238)

Effect of exchange rate changes on cash and cash equivalents

(188)

(774)

Net change in cash and cash equivalents

87,633

26,839

Cash and cash equivalents, beginning of period

191,756

106,181

Cash and cash equivalents, end of period

$      279,389

$      133,020

Revenues by Customer Type (Unaudited)

Three months ended

(in thousands)

9/30/2026

9/30/2025

$ Change

  % Change  

Department of War

$ 1,354,257

54.8 %

$ 1,179,626

51.5 %

$   174,631

14.8 %

Intelligence Community

611,977

24.7

596,429

26.1

15,548

2.6

Federal civilian agencies

396,398

16.0

411,730

18.0

(15,332)

(3.7)

Commercial and other

111,965

4.5

99,838

4.4

12,127

12.1

Total

$ 2,474,597

100.0 %

$ 2,287,623

100.0 %

$   186,974

8.2 %

Revenues by Contract Type (Unaudited)

Three months ended

(in thousands)

9/30/2026

9/30/2025

$ Change

  % Change  

Cost-plus-fee

$ 1,306,307

52.8 %

$ 1,382,630

60.5 %

$   (76,323)

(5.5) %

Fixed-price

821,826

33.2

611,493

26.7

210,333

34.4

Time-and-materials        

346,464

14.0

293,500

12.8

52,964

18.0

Total

$ 2,474,597

100.0 %

$ 2,287,623

100.0 %

$   186,974

8.2 %

Revenues by Prime or Subcontractor (Unaudited)

Three months ended

(in thousands)

9/30/2026

9/30/2025

$ Change

  % Change  

Prime Contractor            

$ 2,209,244

89.3 %

$ 2,076,899

90.8 %

$   132,345

6.4 %

Subcontractor

265,353

10.7

210,724

9.2

54,629

25.9

Total

$ 2,474,597

100.0 %

$ 2,287,623

100.0 %

$   186,974

8.2 %

Revenues by Technology or Expertise (Unaudited)

Three months ended

(in thousands)               

9/30/2026

9/30/2025

$ Change

  % Change  

Technology

$ 1,449,336

58.6 %

$ 1,300,732

56.9 %

$   148,604

11.4 %

Expertise

1,025,261

41.4

986,891

43.1

38,370

3.9

Total

$ 2,474,597

100.0 %

$ 2,287,623

100.0 %

$   186,974

8.2 %

Contract Awards (Unaudited)

Three months ended

(in thousands)

9/30/2026

9/30/2025

$ Change

  % Change  

Contract awards                            

$             4,828,329

$             4,998,684

$   (170,355)

(3.4) %

Note: Some percentages may vary slightly due to rounding.

Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited)

Adjusted net income and adjusted diluted EPS are non-GAAP performance measures. We define adjusted net income and adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Three months ended

(in thousands, except per share data)                                        

9/30/2026

9/30/2025

% Change

Net income, as reported

$  130,367

$  124,810

4.5 %

Intangible amortization expense

54,313

36,033

50.7

Tax effect of intangible amortization1

(13,723)

(9,104)

50.7

Adjusted net income

$  170,957

$  151,739

12.7 %

Three months ended

9/30/2026

9/30/2025

% Change

Diluted EPS, as reported

$      5.84

$      5.63

3.7 %

Intangible amortization expense

2.43

1.63

49.1

Tax effect of intangible amortization1

(0.61)

(0.41)

48.8

Adjusted diluted EPS

$      7.66

$      6.85

11.8 %

FY27 guidance range

(in millions, except per share data)

Low end

High end

Net income

$       579

---

$       599

Intangible amortization expense

215

---

215

Tax effect of intangible amortization1

(54)

---

(54)

Adjusted net income

$       740

---

$       760

FY27 guidance range

Low end

High end

Diluted EPS

$     25.96

---

$     26.86

Intangible amortization expense

9.64

---

9.64

Tax effect of intangible amortization1

(2.42)

---

(2.42)

Adjusted diluted EPS

$     33.18

---

$     34.08

(1)      Calculation uses an assumed full year statutory tax rate of 25.3% on non-GAAP tax deductible adjustments for

           September 30, 2026 and 2025.

Note:  Numbers may not sum due to rounding.

Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)

The Company views EBITDA and EBITDA margin, both of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company's performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider EBITDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets and amortization of intangible assets primarily recognized in business combinations, which we do not believe are indicative of our operating performance. EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Three months ended

(in thousands)

9/30/2026

9/30/2025

     % Change     

Net income, as reported

$                 130,367

$                 124,810

4.5 %

Plus:

Income taxes

43,921

41,292

6.4

Interest income and expense, net

73,240

46,173

58.6

Depreciation and amortization expense, including amounts within direct costs

81,300

56,338

44.3

EBITDA

$                 328,828

$                 268,613

22.4 %

Three months ended

(in thousands)

9/30/2026

9/30/2025

     % Change     

Revenues, as reported

$              2,474,597

$              2,287,623

8.2 %

EBITDA

328,828

268,613

22.4

EBITDA margin

13.3 %

11.7 %

Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited)

The Company defines net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI's MARPA for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $350.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines free cash flow as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe these measures allow investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

Three months ended

(in thousands)

     9/30/2026     

     9/30/2025     

Net cash provided by operating activities, as reported

$   161,314

$   171,065

Cash provided by MARPA

(16,466)

(11,091)

Net cash provided by operating activities excluding MARPA                                                                                     

144,848

159,974

Capital expenditures

(11,359)

(17,014)

Free cash flow

$   133,489

$   142,960

FY27 guidance

(in millions)

Current

Prior

Net cash provided by operating activities

$     1,015

$     1,015

Cash provided by MARPA

—

—

Net cash provided by operating activities excluding MARPA

1,015

1,015

Capital expenditures

(115)

(115)

Free cash flow

$        900

$        900

SOURCE CACI International Inc

PLANO, Texas, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE: ITGR) (“Integer” or the “Company”) and Armstrong Parent, Inc. (“Parent”) today announced that, in connection with Parent’s proposed acquisition of the Company (the “Transaction”) contemplated by their Agreement and Plan of Merger, dated as of August 2, 2026 (the “Merger Agreement”), the stockholders of the Company have voted in favor of (1) the proposal to adopt the Merger Agreement and the Merger (the “First Proposal”) and (2) the proposal to approve, on an advisory (non-binding) basis, the compensation that will or may be paid or become payable to Integer’s named executive officers that is based on or otherwise related to the Transaction as contemplated in the Merger Agreement (the “Second Proposal”) at a special meeting of stockholders held on October 21, 2026 (the “Special Meeting”).

At the Special Meeting, (1) approximately 99.95% of the shares voted on the First Proposal were cast in favor of the First Proposal, representing approximately 76.66% of the total outstanding shares of Integer common stock as of the record date, September 8, 2026 (the “Record Date”), and (2) the Second Proposal was approved by a majority of the votes cast at the Special Meeting. The Company will provide a full report of the voting results from the Special Meeting in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”).

The Transaction is anticipated to close by the end of 2026, subject to the satisfaction or waiver of customary closing conditions specified in the Merger Agreement, including the receipt of required regulatory approvals.

About Integer®

Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device contract development and manufacturing organizations (CDMOs) in the world, serving the cardio and vascular, neuromodulation, and cardiac rhythm management markets. As a strategic partner of choice, we advance the goals of our medical device customers through industry-leading engineering and manufacturing, with a relentless commitment to quality, service, and innovation. The Company’s brands include Greatbatch Medical® and Lake Region Medical®. Additional information is available at www.integer.net.

Contacts

Integer
Media Relations:
Misty Tippen
[email protected]
469-536-6702

Investor Relations:
Kristen Stewart
[email protected]
551-337-3973

Cautionary Statement Regarding Forward-Looking Statements

Some of the statements contained in this communication and other written and oral statements made from time to time by us and our representatives are not statements of historical or current fact. As such, they are “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, and these statements are subject to known and unknown risks, uncertainties and assumptions. Forward-looking statements include, but are not limited to, statements relating to: the completion of the Transaction on anticipated terms and timing, or at all, including obtaining regulatory approvals and satisfying other conditions to the completion of the Transaction; potential litigation relating to the Transaction that could be instituted against the parties to the Merger Agreement or their respective directors, managers, or officers, including the effects of any outcomes related thereto; our goals, plans, and strategic initiatives; long-term growth prospects; maximizing value for our stockholders; and other events, conditions or developments that will or may occur in the future; and timing of any of the foregoing. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “forecast,” “outlook,” “assume,” “potential” or “continue” or variations or the negative counterparts of these terms or other comparable terminology. These statements are only predictions and are no guarantee of future performance, and investors should not place undue reliance on forward-looking statements as predictive of future results. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary factors and to others contained throughout this communication.

Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the transactions contemplated by the Transaction. All such forward-looking statements are based upon current plans, estimates, expectations, opportunities and ambitions that are subject to risks, uncertainties, assumptions, and other important factors, many of which are beyond the control of the Company, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals; the occurrence of any event, change or other circumstances that could give rise to the termination of the Transaction; the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Transaction; the risk that any announcements relating to the Transaction could have adverse effects on the market price of the Company’s common stock; the risk that the Transaction and its announcement could have an adverse effect on the parties’ business relationships and business generally, including the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, regulatory and other stakeholder approvals and support; the risk of unexpected future capital expenditures; the risk of potential litigation relating to the Transaction that could be instituted against the Company or its directors and/or officers; the risk associated with third-party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the Transaction which are not waived or otherwise satisfactorily resolved; significant costs, or expenses incurred in connection with the Transaction; Parent’s ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the Transaction; certain restrictions contained in the Merger Agreement that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the risk of various events that could disrupt operations, including pandemics, epidemics or other public health crises or severe weather (such as droughts, floods, avalanches and earthquakes), cybersecurity attacks, security threats and governmental response to them, and technological changes; the risks of labor disputes, changes in labor costs and labor difficulties; and the risks resulting from other effects of industry, market, economic, legal or legislative, political or regulatory conditions outside of the Company’s control. All such factors are difficult to predict and are beyond our control, including those detailed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 23, 2026, the Company’s quarterly report on Form 10-Q for the fiscal quarter ended July 3, 2026, which was filed with the SEC on August 4, 2026 and other documents subsequently filed by the Company with the SEC. The Company’s forward-looking statements are based on assumptions that the Company believes to be reasonable but that may not prove to be accurate. Other unpredictable factors not discussed in this communication could also have material adverse effects on forward-looking statements. The Company does not assume an obligation to update any forward-looking statements, except as required by applicable law. These forward-looking statements speak only as of the date hereof.

Quarter Highlights

Net Income Attributable to Common Stockholders of $1.46 Per Diluted Share for Third Quarter 2026 Compared to $1.26 Per Diluted Share for Third Quarter 2025 Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.45 Per Diluted Share for Third Quarter 2026 Compared to $2.27 Per Diluted Share for Third Quarter 2025, an Increase of 7.9% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 5.3% on a Straight-Line Basis and 7.1% on a Cash Basis for Third Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 97.3% Leased and 96.5% Occupied as of September 30, 2026; Average Month-End Occupancy of Operating Portfolio was 96.1% for Third Quarter 2026 as Compared to 95.7% for Third Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 36.3% on a Straight-Line Basis Entered into Forward Equity Sale Agreements for Approximately $486 Million at an Initial Weighted Average Forward Price of $202.06 Per Share Transferred a 100% Leased Development Project in Orlando Containing 113,000 Square Feet to the Operating Portfolio Started Construction of Four Development Projects and One Redevelopment Project Totaling 998,000 Square Feet with Projected Total Costs of Approximately $162 Million Signed 11 Leases on Active Development and First Generation Development Properties From July 1, 2026 through October 20, 2026, Totaling Approximately 503,000 Square Feet Acquired Two Operating Properties Containing 531,000 Square Feet and 107 Acres of Development Land for Approximately $164 Million Subsequent to Quarter-End, Acquired Three Operating Properties Containing 1,031,000 Square Feet and 25 Acres of Development Land for Approximately $262 Million Declared 187th Consecutive Quarterly Cash Dividend: Increased the Dividend by $0.20 Per Share (12.9%) to $1.75 Per Share , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us", "our" or "EastGroup") announced today the results of its operations for the three and nine months ended September 30, 2026.

Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "The team and the portfolio performed ahead of expectations this quarter and so far this year. The leasing environment has been much more stable than headlines would lead one to expect. This activity is exciting as we begin to turn the page into 2027. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."

Reid Dunbar, President, added, "Continued leasing momentum gave us the confidence to raise our development starts again, to $390 million for the year, and attractive opportunities allowed us to increase our acquisition guidance to $360 million. Supported by our strong balance sheet, we remain focused on deploying capital with discipline and creating long-term value for our shareholders."

EARNINGS PER SHARE

Three Months Ended September 30, 2026
On a diluted per share basis, earnings per common share ("EPS") were $1.46 for the three months ended September 30, 2026, compared to $1.26 for the same period of 2025. The increase in EPS was primarily due to the following:

The Company's property net operating income ("PNOI") was $147,890,000 ($2.75 per diluted share) for the three months ended September 30, 2026, as compared to $134,374,000 ($2.52 per diluted share) for the same period of 2025, which was an increase of $0.23 per diluted share. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the three months ended September 30, 2026. There were no land sales during the three months ended September 30, 2025. The increase in EPS was partially offset by the following:

Depreciation and amortization expense was $58,206,000 ($1.08 per diluted share) for the three months ended September 30, 2026, as compared to $54,131,000 ($1.02 per diluted share) for the same period of 2025, which was an increase of $0.06 per diluted share. Interest expense was $9,617,000 ($0.18 per diluted share) for the three months ended September 30, 2026, as compared to $7,685,000 ($0.14 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. Weighted average shares outstanding increased by 580,000 shares on a diluted basis for the three months ended September 30, 2026, as compared to the same period of 2025. Nine Months Ended September 30, 2026
EPS for the nine months ended September 30, 2026 were $4.63 per diluted share, as compared to $3.60 per diluted share for the same period of 2025. The increase in EPS was primarily due to the following:

PNOI was $430,826,000 ($8.02 per diluted share) for the nine months ended September 30, 2026, as compared to $389,736,000 ($7.41 per diluted share) for the same period of 2025, which was an increase of $0.61 per diluted share. EastGroup recognized gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the nine months ended September 30, 2026. There were no sales during the nine months ended September 30, 2025. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the nine months ended September 30, 2026. There were no land sales during the nine months ended September 30, 2025. The increase in EPS was partially offset by the following:

Depreciation and amortization expense was $170,109,000 ($3.17 per diluted share) for the nine months ended September 30, 2026, as compared to $159,663,000 ($3.03 per diluted share) for the same period of 2025, which was an increase of $0.14 per diluted share. Interest expense was $27,686,000 ($0.52 per diluted share) for the nine months ended September 30, 2026, as compared to $23,400,000 ($0.44 per diluted share) for the same period of 2025, which was an increase of $0.08 per diluted share. Weighted average shares outstanding increased by 1,100,000 shares on a diluted basis for the nine months ended September 30, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME

Three Months Ended September 30, 2026
For the three months ended September 30, 2026, both funds from operations attributable to common stockholders ("FFO") and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $2.45 per diluted share compared to $2.27 per diluted share during the same period of 2025, an increase of 7.9%.

PNOI increased by $13,516,000, or 10.1%, during the three months ended September 30, 2026, compared to the same period of 2025. PNOI increased $6,809,000 due to same property operations (based on the same property pool), $4,156,000 due to newly developed and value-add properties, and $3,213,000 due to 2025 and 2026 acquisitions. PNOI decreased $634,000 due to operating properties sold in 2025 and 2026.

Same PNOI, Excluding Income from Lease Terminations, increased 5.3% on a straight-line basis for the three months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 7.1%.  Same property average occupancy was 96.9% for the three months ended September 30, 2026, compared to 96.7% for the same period of 2025. The same property average rental rate was $9.46 for the three months ended September 30, 2026, compared to $8.99 per square foot for the same period of 2025.

On a straight-line basis, rental rates on new and renewal leases signed during the three months ended September 30, 2026 (representing 4.6% of the operating portfolio's square footage) increased an average of 36.3%.

Nine Months Ended September 30, 2026
FFO for the nine months ended September 30, 2026, were $7.15 per diluted share compared to $6.64 per diluted share during the same period of 2025, an increase of 7.7%.

FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $7.11 per diluted share for the nine months ended September 30, 2026, compared to $6.61 per diluted share for the same period of 2025, an increase of 7.6%.

PNOI increased by $41,090,000, or 10.5%, during the nine months ended September 30, 2026, compared to the same period of 2025. PNOI increased $23,236,000 due to same property operations (based on the same property pool), $10,426,000 due to newly developed and value-add properties, and $8,836,000 due to 2025 and 2026 acquisitions. PNOI decreased $1,677,000 due to operating properties sold in 2025 and 2026.

Same PNOI, Excluding Income from Lease Terminations, increased 6.3% on a straight-line basis for the nine months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.2%. Same property average occupancy was 97.0% for the nine months ended September 30, 2026, compared to 96.4% for the same period of 2025. The same property average rental rate was $9.36 per square foot for the nine months ended September 30, 2026, compared to $8.81 per square foot for the same period of 2025.

On a straight-line basis, rental rates on new and renewal leases signed during the nine months ended September 30, 2026 (representing 12.3% of the operating portfolio's square footage) increased an average of 35.6%.

The same property pool for the three and nine months ended September 30, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through September 30, 2026; this pool is comprised of properties containing 58,047,000 square feet. Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026). The same property average rental rate calculated on a straight-line basis represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026).

FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release.  Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."

ACQUISITIONS AND DISPOSITIONS

As previously announced, in July 2026, EastGroup acquired Airgate Mesa Corporate Center in Phoenix for $27,688,000. The 143,000 square foot industrial building was developed in 2022 and is 100% leased to a single tenant. Also in July 2026, as previously announced, the Company acquired Harris Ridge Business Center in Austin for $82,268,000. The property is comprised of 5 buildings containing 388,000 square feet and is currently 95% leased to 10 tenants.

In August 2026, as previously announced, the Company acquired 69.5 acres of development land in the Northeast Dallas submarket for $38,049,000. The land, known as Frisco Park 121 Phase 2 Land, is adjacent to the Company's previously acquired Frisco Park 121 Land and expands the existing development plan from 4 buildings totaling approximately 350,000 square feet to 11 buildings totaling approximately 1,000,000 square feet.

Also as previously announced, in September 2026, EastGroup acquired 30.3 acres of development land, known as Crossroads Logistics Park Phase 2 Land, for $13,266,000. This land acquisition expands EastGroup's existing park located in the East Tampa submarket, increasing the existing development plan from three buildings totaling approximately 500,000 square feet to five buildings totaling approximately 850,000 square feet.

Also, in September 2026, the Company acquired 7.5 acres of development land in the space coast market in Melbourne, FL, known as Crane Creek Commerce Center Land, for $2,781,000. This site is expected to accommodate the future development of a 69,000 square foot building.

Subsequent to September 30, 2026, EastGroup closed on the acquisition of a property in the Northeast submarket of Dallas for approximately $89,000,000. The property, which was constructed in 2025, includes three business distribution buildings containing 375,000 square feet, which are currently 91% leased to three tenants.

Also in October 2026, the Company closed on the acquisition of a business distribution building containing 202,000 square feet in the Dallas-Fort Worth International Airport submarket for approximately $30,000,000. The building, subject to a ground lease, was built in 2023 and is 100% leased to a single tenant.

Also subsequent to September 30, 2026, EastGroup closed on the acquisition of three business distribution buildings in the North Denver submarket for approximately $95,000,000. The buildings, which contain 454,000 square feet, were constructed in 2025 and are 100% leased to four tenants.

Also in October 2026, the Company acquired 24.9 acres of development land in Miami for approximately $48,000,000. This site is expected to accommodate the future development of two buildings containing approximately 371,000 square feet.

As previously announced, in July 2026, the Company sold a 6.9 acre parcel of land in Miami for $14,250,000. A gain of $4,709,000 was recognized during the three months ended September 30, 2026; this gain is excluded from FFO.

DEVELOPMENT AND VALUE-ADD PROPERTIES

During the third quarter of 2026, EastGroup began construction of four development projects and one redevelopment project totaling 998,000 square feet, with projected total costs of $162,200,000. The development and redevelopment projects started during the nine months ended September 30, 2026 are detailed in the table below:

Development and Redevelopment Projects Started
During the Nine Months Ended September 30, 2026

Location

Size

Anticipated
Transfer Date

Projected
Total Costs

(Square feet)

(In thousands)

Country Club 5 Expansion (1)

Tucson, AZ

101,000

05/2027

$

9,800

Crossroads 3

Tampa, FL

156,000

10/2027

26,900

Oak Creek 1 (2)

Tampa, FL

222,000

10/2027

4,200

Grand West Crossing 3 & 4

Houston, TX

128,000

02/2028

18,900

World Houston 48

Houston, TX

191,000

03/2028

18,800

Skyway 3

Charlotte, NC

156,000

04/2028

20,400

Brightstar 100

Atlanta, GA

196,000

05/2028

21,700

Miramar Business Center

San Diego, CA

60,000

05/2028

53,100

Schertz Summit Park 1 & 2

San Antonio, TX

202,000

07/2028

27,700

Basswood 6 & 7

Fort Worth, TX

294,000

09/2028

40,600

Bell Creek 1 & 2

Tampa, FL

226,000

10/2028

42,600

   Total Development Projects Started

1,932,000

$

284,700

(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.

(2) Represents a redevelopment project.

Subsequent to September 30, 2026, the Company began construction of Gateway Interchange C, D & E in Phoenix, which is anticipated to accommodate the future development of three buildings containing approximately 295,000 square feet, with projected total costs of $54,300,000.

At September 30, 2026, EastGroup's development and value-add program consisted of 21 projects (4,061,000 square feet) in 14 markets. The projects, which were collectively 25% leased as of October 20, 2026, have a projected total cost of $636,700,000, of which $251,460,000 remained to be invested as of September 30, 2026.

During the third quarter of 2026, EastGroup transferred one project in Orlando to the operating portfolio. The Company transfers projects to the operating portfolio at the earlier of 90% occupancy or one year after completion. The project contains 113,000 square feet and was 100% leased as of October 20, 2026.

The development projects transferred to the operating portfolio during the nine months ended September 30, 2026 are detailed in the table below:

Development, Redevelopment and Value-
Add Properties Transferred to the
Operating Portfolio During the Nine
Months Ended September 30, 2026

Location

Size

Transfer Date

Cumulative Cost
as of 9/30/26

Percent Leased
as of 10/20/26

(Square feet)

(In thousands)

Denton 35 Exchange 1 & 2

Dallas, TX

244,000

02/2026

$

33,604

100

%

Skyway 1 & 2

Charlotte, NC

318,000

03/2026

38,781

79

%

Grand West Crossing 2

Houston, TX

97,000

04/2026

11,854

100

%

Texas Avenue 1 & 2

Austin, TX

129,000

04/2026

21,772

83

%

World Houston 46

Houston, TX

181,000

04/2026

17,047

100

%

Dominguez (1)

Los Angeles, CA

262,000

06/2026

7,867

100

%

Horizon West 9

Orlando, FL

113,000

08/2026

14,819

100

%

   Total Projects Transferred

1,344,000

$

145,744

94

%

Projected Stabilized Yield (2)

9.4 %

(1) Represents a redevelopment project.

(2) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs. The projected stabilized yield excluding the redevelopment project is 7.7%.

DIVIDENDS

EastGroup declared a cash dividend of $1.75 per share of common stock in the third quarter of 2026, which represented a 12.9% increase over the previous quarter's dividend. The third quarter dividend, which was paid on October 15, 2026, was the Company's 187th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 34 consecutive years and has increased it 31 years over that period, including increases in each of the last 15 years. The annualized dividend rate of $7.00 per share represents a dividend yield of 3.5% based on the closing stock price of $201.25 on October 20, 2026.

FINANCIAL STRENGTH AND FLEXIBILITY

EastGroup continues to maintain a strong and flexible balance sheet.  Debt-to-total market capitalization was 14.6% at September 30, 2026.  The Company's interest and fixed charge coverage ratio was 14.7x and 14.9x for the three and nine months ended September 30, 2026, respectively. The Company's annualized ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.2x and 3.3x for the three and nine months ended September 30, 2026, respectively. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.

During the three months ended September 30, 2026, the Company entered into forward equity sale agreements with respect to 2,402,931 shares of common stock with an initial weighted average forward price of $202.06 per share totaling approximately $485,531,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of October 20, 2026, EastGroup had 3,443,388 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from February 2027 to February 2028, for anticipated net sales of approximately $685,234,000, based on a weighted average forward price of $199.00 per share.

Subsequent to September 30, 2026, EastGroup repaid a $100,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.98%.

OUTLOOK FOR 2026

We now estimate EPS for 2026 to be in the range of $5.99 to $6.05 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.62 to $9.68. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.

EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.

The following table presents the guidance range for 2026:

Low Range

High Range

Q4 2026

Y/E 2026

Q4 2026

Y/E 2026

(In thousands, except per share data)

Net income attributable to common stockholders

$

74,230

322,757

77,464

325,991

Depreciation and amortization

60,019

230,220

60,019

230,220

Gain on sales of real estate investments and non-operating

   real estate

—

(34,783)

—

(34,783)

Funds from operations attributable to common stockholders*

$

134,249

518,194

137,483

521,428

Weighted average shares outstanding — Diluted

54,394

53,892

54,394

53,892

Per share data (diluted):

   Net income attributable to common stockholders

$

1.36

5.99

1.42

6.05

   Funds from operations attributable to common stockholders*

2.47

9.62

2.53

9.68

*This is a non-GAAP financial measure. Please refer to Definitions.

The following assumptions were used for the mid-point:

Metrics

Revised Guidance
for Year 2026

July Earnings
Release Guidance
for Year 2026

Actual for Year
2025

FFO per share for the year

(see Q4 projections in the table above)

$9.62 - $9.68

$9.52 - $9.66

$8.98

FFO per share increase over prior year

7.5 %

6.8 %

7.5 %

FFO per share, excluding gain on involuntary conversion and
business interruption claims

$9.58 - $9.64

$9.48 - $9.62

$8.95

FFO per share increase over prior year, excluding gain on
involuntary conversion and business interruption claims

7.4 %

6.7 %

7.7 %

Same PNOI growth: cash basis (1)

7.2% - 7.8% (2)

6.3% - 7.3% (2)

6.7 %

Average month-end occupancy — Operating portfolio

95.6% - 96.2% (3)

95.3% - 96.1%

95.9 %

Average month-end occupancy — Same property pool

96.7% - 97.3% (2)

96.3% - 97.1% (2)

96.5 %

Development starts:

     Square feet

2.5 million

2.2 million

1.4 million

     Projected total investment

$390 million

$325 million

$179 million

Operating property acquisitions

$360 million

$215 million

$143 million

Operating property dispositions

(Potential gains or losses on dispositions are not included in the projections)

$44 million

$75 million

$4 million

Gross capital proceeds (4)

$625 million (5)

$300 million

$517 million

General and administrative expense

$26.8 million

$26.7 million

$24.0 million

(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.

(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,047,000 square feet.

(3) Represents estimated average month-end operating portfolio occupancy from January-December 2026.

(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on unsecured bank credit facilities.

(5) Assumes issuance of approximately 3,000,000 shares under the continuous common equity program, including direct common stock issuance and settlement of outstanding forward equity agreements, during the three months ended December 31, 2026.

DEFINITIONS

Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.  

FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit").  Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.

PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup may refer to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land, buildings and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, additional rent charged when a tenant remains in occupancy after lease expiration, and amounts paid by tenants for operating expenses above the levels established in their leases. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.

FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions.  PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs.  Investors should be aware that items excluded from or included in FFO are significant components in understanding and assessing the Company's financial performance.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.

Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its annualized EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.

The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.

CONFERENCE CALL

EastGroup will host a conference call and webcast to discuss the results of its third quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, October 22, 2026, at 10:00 a.m. Eastern Time.  A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net.  If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, October 22, 2026.  The telephone replay will be available through Thursday, October 29, 2026, and can be accessed by dialing 1-888-660-6345 (access code 87577#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.

SUPPLEMENTAL INFORMATION

Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.

COMPANY INFORMATION

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina.  The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range).  The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets.  The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 68.3 million square feet.  EastGroup Properties, Inc. press releases are available at www.eastgroup.net.

The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the Company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.

FORWARD-LOOKING STATEMENTS

The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends are subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:

international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or an inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of armed conflicts in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.

The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.

CONTACT

[email protected]

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

REVENUES

Income from real estate operations

$

199,400

182,089

582,926

531,989

Other revenue

37

47

98

1,882

199,437

182,136

583,024

533,871

EXPENSES

Expenses from real estate operations

51,818

48,004

153,025

143,127

Depreciation and amortization

58,206

54,131

170,109

159,663

General and administrative

6,251

5,607

21,074

18,851

Indirect leasing costs

251

199

707

633

116,526

107,941

344,915

322,274

OTHER INCOME (EXPENSE)

Interest expense

(9,617)

(7,685)

(27,686)

(23,400)

Gain on sales of real estate investments

—

—

30,074

—

Other income

5,086

447

8,030

1,510

NET INCOME

78,380

66,957

248,527

189,707

Net income attributable to noncontrolling interest in joint ventures

—

(14)

—

(42)

NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS

78,380

66,943

248,527

189,665

Other comprehensive income (loss) — Interest rate swaps

9,527

(2,139)

14,932

(13,202)

TOTAL COMPREHENSIVE INCOME

$

87,907

64,804

263,459

176,463

BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

$

1.46

1.26

4.64

3.61

Weighted average shares outstanding — Basic

53,675

53,159

53,599

52,544

DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

$

1.46

1.26

4.63

3.60

Weighted average shares outstanding — Diluted

53,844

53,264

53,724

52,624

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS

$

78,380

66,943

248,527

189,665

Depreciation and amortization

58,206

54,131

170,109

159,663

Company's share of depreciation from unconsolidated investment

31

31

93

93

Depreciation and amortization attributable to noncontrolling interest

—

(2)

(1)

(4)

Gain on sales of real estate investments

—

—

(30,074)

—

Gain on sales of non-operating real estate

(4,709)

—

(4,709)

—

FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON
STOCKHOLDERS*

131,908

121,103

383,945

349,417

Gain on involuntary conversion and business interruption claims

—

—

(1,950)

(1,763)

FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN
ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION
CLAIMS*

$

131,908

121,103

381,995

347,654

NET INCOME

$

78,380

66,957

248,527

189,707

Interest expense (1)

9,617

7,685

27,686

23,400

Depreciation and amortization

58,206

54,131

170,109

159,663

Company's share of depreciation from unconsolidated investment

31

31

93

93

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION ("EBITDA")

146,234

128,804

446,415

372,863

Gain on sales of real estate investments

—

—

(30,074)

—

Gain on sales of non-operating real estate

(4,709)

—

(4,709)

—

EBITDA FOR REAL ESTATE ("EBITDAre")*

$

141,525

128,804

411,632

372,863

Debt

$

1,806,556

1,479,819

1,806,556

1,479,819

Debt-to-EBITDAre ratio* (Annualized)

3.2

2.9

3.3

3.0

EBITDAre*

$

141,525

128,804

411,632

372,863

Interest expense (1)

9,617

7,685

27,686

23,400

Interest and fixed charge coverage ratio*

14.7

16.8

14.9

15.9

DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES,
INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

$

1.46

1.26

4.63

3.60

FFO attributable to common stockholders*

$

2.45

2.27

7.15

6.64

FFO attributable to common stockholders, excluding gain on involuntary conversion
and business interruption claims*

$

2.45

2.27

7.11

6.61

Weighted average shares outstanding for EPS and FFO purposes — Diluted

53,844

53,264

53,724

52,624

(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.

*This is a non-GAAP financial measure. Please refer to Definitions.

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)

(IN THOUSANDS)

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

NET INCOME

$

78,380

66,957

248,527

189,707

Gain on sales of real estate investments

—

—

(30,074)

—

Gain on sales of non-operating real estate

(4,709)

—

(4,709)

—

Gain on involuntary conversion and business interruption claims

—

—

(1,950)

(1,763)

Interest income

(100)

(174)

(539)

(683)

Other

(37)

(47)

(98)

(119)

Indirect leasing costs

251

199

707

633

Depreciation and amortization

58,206

54,131

170,109

159,663

Company's share of depreciation from unconsolidated investment

31

31

93

93

Interest expense (1)

9,617

7,685

27,686

23,400

General and administrative expense (2)

6,251

5,607

21,074

18,851

Noncontrolling interest in PNOI of consolidated joint ventures

—

(15)

—

(46)

PROPERTY NET OPERATING INCOME ("PNOI")*

147,890

134,374

430,826

389,736

PNOI from 2025 and 2026 acquisitions

(4,253)

(1,040)

(9,876)

(1,040)

PNOI from 2025 and 2026 development and value-add properties

(7,803)

(3,647)

(19,142)

(8,716)

PNOI from 2025 and 2026 operating property dispositions

—

(634)

(363)

(2,040)

Other PNOI

244

216

660

929

SAME PNOI (Straight-Line Basis)*

136,078

129,269

402,105

378,869

Lease termination fee income from same properties

(69)

(101)

(164)

(833)

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS
(Straight-Line Basis)*

136,009

129,168

401,941

378,036

Straight-line rent adjustments for same properties

(1,702)

(3,489)

(4,537)

(9,875)

Acquired leases — Market rent adjustment amortization for same properties

(1,287)

(1,466)

(3,979)

(4,553)

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash
Basis)*

$

133,020

124,213

393,425

363,608

(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.

(2) Net of capitalized development costs of $2,644 and $1,716 for the three months ended September 30, 2026 and 2025, respectively; and $6,768 and $5,387 for the nine months ended September 30, 2026 and 2025, respectively.

*This is a non-GAAP financial measure. Please refer to Definitions.

SOURCE EastGroup Properties

SAN JOSE, Calif., Oct. 21, 2026 (GLOBE NEWSWIRE) -- QuantumScape Corporation (NASDAQ: QS), a global leader in next-generation solid-state lithium-metal battery technology, today announced its business and financial results for the third quarter of 2026, which ended September 30.

The company posted a letter to shareholders on its Investor Relations website, ir.quantumscape.com, that details third-quarter financial results and provides a business update.

QuantumScape will host a live webcast today at 2 p.m. Pacific Time (5 p.m. Eastern Time), accessible via its IR Events page.

An archive of the webcast will be available shortly after the call for 12 months.

About QuantumScape Corporation

QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.

For Investors
[email protected]

For Media
[email protected]

-

LOWELL, Ark.--(BUSINESS WIRE)--J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) announced today that its Board of Directors has declared a regular quarterly dividend on its common stock of $ 0.45 (forty five cents) per common share. The dividend is payable to stockholders of record on November 6, 2026 and will be paid on November 20, 2026.

About J.B. Hunt

J.B. Hunt’s vision is to create the most efficient transportation network in North America. The company’s industry-leading solutions and mode-neutral approach generate value for customers by eliminating waste, reducing costs and enhancing supply chain visibility. Powered by one of the largest company-owned fleets in the country and third-party capacity through its J.B. Hunt 360°® digital freight marketplace, J.B. Hunt can meet the unique shipping needs of any business, from first mile to final delivery, and every shipment in-between. Through disciplined investments in its people, technology and capacity, J.B. Hunt is delivering exceptional value and service that enable long-term growth for the company and its stakeholders.

J.B. Hunt Transport Services Inc. is an S&P 500 company and a component of the Dow Jones Transportation Average. Its stock trades on NASDAQ under the ticker symbol JBHT. J.B. Hunt Transport Inc. is a wholly owned subsidiary of JBHT. The company’s services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, transload and more. For more information, visit www.jbhunt.com.

More News From J.B. Hunt Transport Services, Inc.

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India's festival Gold buying peaks with Dhanteras on November 6 and Diwali on November 8, 2026. Last year's season already showed buyers shifting from jewelry to bullion as prices climbed, and this year's opens with a 15 percent import duty and a weaker rupee.

India's jewelry demand fell 24 percent in 2025 to 430.5 tonnes, according to the World Gold Council (WGC), while bar and coin demand climbed 17 percent to 280.4 tonnes. Gold had gained about 73 percent in rupee terms by late December, so the same budget bought far less metal in jewelry form.

The festival quarter widened the gap. Jewelry volumes fell 23 percent to 145.3 tonnes in Q4 even with wedding demand, and bar and coin demand rose 26 percent to 96 tonnes. Jewelry sales still rose 26 percent in rupee terms, so value and volume moved in opposite directions.

Retailers adapted. A bullion dealer cited in Commerzbank's note said jewelers had stocked small coins and bars ahead of Dhanteras and Diwali, and dealer premiums on Gold reached $25 an ounce, up from $15 a week earlier.

What changed in 2026In mid-May, India raised its import duty on Gold from 6 percent to 15 percent, which one analysis called the largest increase on record, to narrow a trade deficit that was weighing on the rupee. Prime Minister Narendra Modi also urged citizens to pause Gold purchases for a year.

Jewelry demand fell 15 percent year on year to 75.1 tonnes in April to June, while bar and coin demand rose 9 percent to 50.3 tonnes. First-half bar and coin buying reached about 113 tonnes, the highest in 13 years.

Source: Gold.orgReuters reported that dealers moved from discounts of up to $6 an ounce to premiums of up to $7 in mid-October, the first premium in more than three months, as the price pullback lifted jewelry purchases. A WGC and Kantar survey of 1,963 consumers (May 22 to June 3) found stronger purchase intent for investment Gold than for jewelry, yet one bullion merchant told Reuters that investors were still holding back as prices fall.

Supply data are mixed. India's September Gold imports fell to $1.8 billion from $9.6 billion a year earlier, trade ministry data showed, and a Mumbai dealer told Reuters the shortfall is tightening domestic supply, while the WGC's second-quarter report called supply adequate.

Why it matters for XAU/USD and the RupeeIndia accounted for 27 percent of global jewelry demand and 16 percent of global bar and coin demand in the second quarter, according to the WGC, so festival buying is a visible input to the physical market behind XAU/USD. Spot Gold trades near $4,170 an ounce, about a quarter below its January record.

The rupee is the other channel. Importers sell rupees to buy the dollars that pay for Gold, and Gold and silver made up about 11 percent of India's imports against 22 percent for oil, according to Money Metals Exchange analysis. In the second quarter, the LBMA Gold price was 37 percent higher than a year earlier while the domestic price was 59 percent higher, a gap the WGC tied to the duty hike and rupee depreciation.

What to watch through November 8Dealer premiums are the first reading. Commerzbank expected last year's premium spike to fade after the holidays, so a premium that holds after Diwali would say more than one during the festival.

October import data will show whether restocking came before the festivals or after. Several large Indian mutual funds also suspended bulk subscriptions to Gold ETFs in mid-October at the market regulator's nudge, Reuters reported, so ETF access is worth tracking too.

A weaker rupee lifts domestic prices even when spot Gold is flat, and the WGC noted that both price dips and price stability have supported purchases. Metals Focus has observed that Indian consumers tend to delay purchases after sharp price increases and then adjust, which would make the winter wedding season a second test of this year's demand. No single reading above predicts the festival total.

Skydance shares are staging a sharp recovery while the rest of the media sector slides, and the reason traces back to a warrant split that may not be done rattling the stock.

A sharp retracement is lifting Skydance (NYSE:SKYD) after its warrants began trading separately. This bounce is coming while the rest of the media group drifts lower. Skydance shares are up 10% to $7.84 in afternoon trading, a move that wins back some of the ground lost once Skydance stock and its warrants separated.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.7% to $774.25, so the broad market is giving stocks a supportive backdrop. By contrast, the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) is down 0.7% to $109.43, leaving media and internet names behind the overall market. That gap between the two funds marks Skydance’s gain as a stand-alone move.

Meanwhile, Spotify Technology (NYSE:SPOT | SPOT Price Prediction) stock is down 0.6% to $523.14, a modest slip that puts it on the opposite side of Skydance’s rally. Walt Disney (NYSE:DIS) shares are slipping, down 0.2% to $111.49, which leaves the entertainment heavyweight slightly lower while Skydance posts its sharp gain. Neither peer is moving anywhere near as much as Skydance, which keeps the focus on the warrant story.

The Warrant Split Behind the Selloff
Skydance completed its acquisition of Warner Bros. Discovery earlier this month, then distributed long-dated warrants to shareholders last week. The company released details on the separate trading of its SKYD Class B shares and warrants, and Skydance stock fell once the two securities split, as part of each holder’s value moved into the warrants.

Even with the bounce, Skydance shares sit 16% below the $9.28 level where they started trading on the NYSE, so the rebound retraces only part of that markdown.

What the Peer and Fund Figures Show
Spotify, Disney and the communication services fund are all moving lower while Skydance climbs. That divergence marks the gain as a Skydance-specific retracement.

Within the Communication Services fund, Disney held a 4.5% weight as of June 30, while Skydance sat at just 0.4%. That weighting means the fund’s dip reflects Disney and larger media names far more than any swing in Skydance.

Skydance now combines the Paramount and Warner Bros. film studios, streaming services including Paramount+ and HBO Max, and television networks such as CBS and CNN, and Paramount+ alone counted 81.6 million subscribers in its most recent reported quarter. Disney pairs streaming with theme parks, while Spotify sells audio subscriptions, so neither faces the merger integration and warrant questions hanging over Skydance.

The bull case for Skydance rests on scale, with two major studios and two streaming platforms under one roof feeding a deeper content library. Skeptics point to Skydance’s integration risk and the warrants themselves, since a second security trading alongside the Class B shares can weigh on Skydance stock until the overhang clears.

Skydance’s First Combined Quarter Is the Next Proof Point
On November 9, Skydance is scheduled to post Q3 2026 results, its first report as the combined company. Skydance’s earnings report could show whether the merged studios and streaming services are working together. Management’s commentary on how the two studios and two streaming platforms fit could shape how Skydance stock trades afterward.

The open variable is how fast the warrant overhang clears. Wide gaps between the Class B shares and the warrants could keep Skydance stock volatile in the near term.

Skydance faces a stretch where warrant pressure and integration work overlap, and the combined company hasn’t posted a full quarter as one business yet. Investors weighing their SKYD stock exposure should calibrate their holdings carefully while the picture clears.

Contact [email protected] for any questions or corrections.

AST SpaceMobile (ASTS -0.97%) sank to a 52-week low of $39.02 on Oct. 20, just 12 days after SpaceX (SPCX +7.00%) agreed to acquire Grain Management's nationwide 800 MHz low-band spectrum portfolio for $8 billion. Let's see why that announcement torpedoed AST's stock -- and why investors might be overreacting to the news.

Why did SpaceX's move crush AST's stock?
AST SpaceMobile develops low Earth orbit (LEO) satellites for direct-to-cell connections. Its top customers include AT&T (T -5.64%) and Verizon (VZ -2.03%), and its satellites expand their cellular networks to remote areas that their terrestrial towers can't reach.

Image source: Getty Images.

AST has launched 13 of its BlueBird satellites so far, but it can't deliver stable cellular connections and generate recurring commercial revenue until it expands that constellation to at least 45 satellites. It expects to reach that target by early 2027, and gradually expand its constellation to 248 satellites over the long term. In addition to AT&T and Verizon, AST is working with dozens of other carriers to reach over 3 billion wireless subscribers worldwide.

In the past, AST and its clients didn't directly compete against SpaceX, which provided first-party satellite internet and broadband services through Starlink. But satellite signals can't penetrate walls and windows very easily, so Starlink relies on mid-band spectrum partners like T-Mobile (TMUS -2.78%) to reach those indoor dead zones.

By purchasing Grain's 800 MHz spectrum -- which previously belonged to T-Mobile -- and combining it with a constellation of over 10,000 active satellites (which are smaller than AST's satellite arrays), Starlink can evolve into a fully independent wireless carrier. That could spell trouble for AT&T and Verizon's slower-moving plans with AST SpaceMobile.

$40.73-$0.40 (-0.97%)

NASDAQ · As of 3:03 PM ET 10/21/26

Why was that sell-off an overreaction?
It made sense for AT&T and Verizon to get crushed by the news, but AST's decline is less rational. If AT&T, Verizon, and other carriers want to counter Starlink's latest move, they'll need to ramp up their spending on AST SpaceMobile's BlueBird satellites. They could also increase their investments in the company to accelerate those efforts.

Moreover, SpaceX isn't positioning Starlink as a competitor to AST. Instead, it will likely drive more carriers to partner with AST to expand their own satellite networks.

Therefore, I think AST's pullback was mainly due to overheated valuations rather than an existential threat to its business. Even after its recent decline, it still trades at 74 times this year's sales and 21 times next year's sales.

Analysts still expect AST's revenue to surge from $168 million in 2026 to $1.73 billion in 2028. If you believe it can hit those targets as it expands its constellation and gains new partners, it might be smarter to accumulate this volatile stock rather than sell the news.

Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

AMD Stock Gains as New India AI Project Fuels Optimism Ahead of Nov. 3 Earnings

Summary

AMD shares gained as a major AI infrastructure project in India and a higher Wall Street price target boosted investor interest ahead of earnings

Advanced Micro Devices AMD shares climbed about 2% in morning trading Wednesday as a new AI infrastructure project in India and a higher price target from Susquehanna added to investor interest.

Cloud infrastructure provider Vultr plans to deploy AMD's Instinct MI355X graphics processors in a 20-megawatt supercluster in Chennai. The facility is expected to serve AI developers, startups, enterprises and research institutions. Vultr also plans to expand its AI computing capacity in 2027.

Susquehanna analyst Christopher Rolland raised his price target on AMD to $620 from $550 while maintaining a Positive rating. The firm expects modest upside for semiconductor companies' third-quarter results and fourth-quarter guidance, although it sees potential weakness in second-half client processor performance as PC builds trail expectations.

AMD is scheduled to report third-quarter results on Nov. 3. The semiconductor sector also advanced as recent updates from Super Micro Computer and SpaceX bolstered optimism around AI infrastructure spending. However, investors remained attentive to upcoming economic data for signals about the Federal Reserve's next interest-rate decision, which could influence borrowing costs and demand for growth stocks.

Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Netflix NFLX faces a question that one disappointing earnings outlook cannot fully explain: does Hollywood’s biggest entertainment budget still buy a durable competitive advantage?

NFLX shares are down some 4% this morning after the streaming giant lowered its 2026 ads sales guidance to $3 billion at most, as Q3 revenue came in up 11.8% - marking the slowest growth in nearly three years.

Speaking on CNBC, industry mogul Tom Rogers argued that changes in how entertainment is made and consumed threaten a spending advantage that has long underpinned Netflix’s success.

Netflix’s model depends on a reinforcing cycle: fund compelling entertainment, attract subscribers, strengthen pricing power, and reinvest the proceeds into more programming.

Rogers questioned whether that engine can keep delivering the same results as cheaper alternatives capture viewers’ attention.

“Having the biggest entertainment budget is not necessarily going to be the decisive factor” – he noted.

Creator videos represent one challenge because their appeal doesn’t really depend on Hollywood production costs. Rogers pointed to YouTube’s growing engagement as evidence that expensive programming no longer has the audience’s undivided attention.

He also identified artificial intelligence-generated entertainment as a potential competitive threat, arguing that it could eventually deliver premium programming at substantially lower costs.

That remains his assessment of the technology’s potential, rather than proof that “AI productions” already match Netflix’s slate commercially.

Tom Rogers sees another complication for Netflix shares – the company may need more sports to improve engagement, but securing those rights could weaken the very spending advantage it wants to protect.

“Sports programming is very expensive,” he argued on CNBC.

Spending more on live rights would leave a smaller share of the programming budget available for films and series, unless Netflix increased overall spending.

Its budget would consequently begin to resemble those of rivals already balancing entertainment against substantial sports commitments.

“My guess is they’re going to go heavier on sports,” Rogers added.

He identified potential NFL rights opportunities linked to Paramount’s change of control as an area to watch.

For investors, the question would be whether additional engagement and ads justify the acquisition costs.

Crucially, Rogers’ argument was not that NFLX's business is broken. He drew a distinction between its American engagement challenges and the strength of its overseas programming.

“They are doing something very right,” he said of the international operation.

According to Rogers, non-English international content now accounts for about a third of Netflix’s overall viewing.

He highlighted successful programming across markets including India, Japan, Mexico and the Nordic countries, alongside profitability that he described as substantially ahead of rival streamers.

That creates a more nuanced investment debate. NFLX stock retains an international engine that competitors would struggle to reproduce, even if its domestic content strategy needs improvement.

The implication of Rogers’ analysis is that investors should judge future spending by the engagement and financial returns it produces.

A larger budget alone offers less reassurance when viewers have increasingly attractive alternatives.

Johnson and Johnson has raised its dividend every single year for 64 years straight, yet a plain S&P 500 index fund still beat it handily over the past decade. Understanding why reveals something surprising about what actually kept long-term shareholders…

Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) spent the past decade rebuilding itself and raised its dividend every year. Say you put $1,000 into the stock 10 years ago and reinvested every payout. You would have $2,957.10 today, and about $703 of that came from dividends.

From Baby Powder to a Pharma and MedTech Powerhouse A decade ago, J&J was a conglomerate with three divisions. In August 2023, it spun off consumer health as Kenvue (NYSE:KVUE), leaving two divisions: Innovative Medicine and MedTech. Then it went shopping. It bought Abiomed in 2022, Shockwave Medical in 2024, and Intra-Cellular Therapies in April 2025. It also plans to spin off its orthopedics business.

Talc lawsuits hung over all of it. In the third quarter of 2026, charges of about $7 billion for a proposed talc settlement and two deals cut reported EPS to $0.09. Adjusted EPS was $2.59.

Your $1,000 Nearly Tripled, With Dividends Doing Heavy Lifting 1-Year Return

Initial Investment: $1,000 Current Value: $1,349.40 (price only: $1,319.69) Total Return: 34.94% S&P 500 (same period): $1,145.30 (14.53%) 5-Year Return

Initial Investment: $1,000 Current Value: $1,798.60 (price only: $1,564.57) Total Return: 79.86% Annualized Return: 12.46% S&P 500 (same period): $1,695.00 (69.5%) 10-Year Return

Initial Investment: $1,000 Current Value: $2,957.10 (price only: $2,253.61) Total Return: 195.71% Annualized Return: 11.45% S&P 500 (same period): $3,593.10 (259.31%) The S&P 500 figures leave out dividends, so the market’s real 10-year lead is bigger than shown. Over five years, dividends made the difference. On price alone, J&J returned 56.46% and trailed the index. Holding on also took patience. The stock fell 23.63%, from $186.01 in April 2022 to $142.06 in January 2025. During that slump, reinvested dividends bought shares cheaply, and the past year’s rally paid that off.

Growth Engines vs. the Talc Bill: What Decides the Next Decade The case for Johnson & Johnson rests on new drugs continuing to offset STELARA’s decline. It struggles if lawsuit and deal costs start crowding out the dividend.

Bull case: Oncology sales grew about 17% last quarter, and TREMFYA rose 68.2%. The company expects $21 billion in free cash flow this year. CEO Joaquin Duato says there is “a clear path to double-digit growth by the end of the decade.” J&J reports 64 straight years of dividend increases. The payment history we checked supports that: the quarterly payout rose every year, from $0.18 in 2002 to $1.34 today.

Bear case: The biggest risk to the dividend is cash. Net debt is about $28 billion. Two recent deals, Firefly Bio and the Cell BioMedicines collaboration, are expected to cut 2027 adjusted EPS by $1.36. Talc settlement payments come on top of that. If they eat into free cash flow, dividend increases could shrink to small amounts.

The record favors patient investors who reinvest their dividends. With shares up 25.52% this year, the easy gains may already be behind it. I’d still expect dividends to keep doing much of the work.

Contact [email protected] for any questions or corrections.

General Motors (GM.N) plans to offer “eyes-off” autonomous driving on its ​highest-selling, most profitable vehicles — big pickup trucks and SUVs — as it seeks fresh revenue streams from heavy technology investments.

Last year, ‌GM said it would offer autonomous highway driving in 2028 on its pricey but light-selling Cadillac Escalade IQ, an electric SUV. On Wednesday, the automaker said it would expand the service to its pickup trucks and other large SUVs, without specifying a timeframe.

Many assisted-driving systems control steering and speed in certain settings —sometimes hands-free — but require the driver ​to remain attentive. Those include Tesla’s Full Self-Driving (Supervised) system and GM’s Super Cruise feature, which debuted about a decade ago.

Only a ​few automakers have introduced eyes-off systems, including Mercedes-Benz (MBGn.DE), with service typically limited to small geographic areas at low speeds, ⁠such as in stop-and-go traffic.

Some industry executives have said eyes-off driving that exchanges control back and forth from the car to the driver raises thorny ​safety and liability questions, and might not interest enough car shoppers.

Sterling Anderson, GM’s chief product officer who previously worked at autonomous-truck company Aurora, said GM ​is building "an autonomous system that operates safely on highways that actually gives you your time back.” He said GM will eventually expand the service to other roads.

NEW SOFTWARE BRAIN
GM is developing a new software backbone for future vehicles to deliver the automated-driving system and other digital features, expecting drivers will be willing to pay for them. ​GM executives outlined the plans during an event in New York on Wednesday.

A central computer will serve as the vehicle brain, allowing the car ​to receive remote updates like a smartphone. Tesla, Rivian and many Chinese automakers have jumped ahead of traditional automakers in designing the ability to beam software updates ‌remotely to ⁠vehicles.

Anderson said inside GM, he refers to the new vehicles as “robots.”

“We're thinking a lot about the ways your life can be better … because your vehicle just knows what you need before you need it,” he told Reuters.

GM’s plan to transform cars into rolling, updatable computers is crucial to compete with Chinese automakers and EV-only brands such as Tesla, said Sam Abuelsamid, vice president of market research at Telemetry, an automotive research firm. If not, “they will ​fall even further behind the competitors.”

One ​reason traditional automakers have struggled ⁠with software is that they have long outsourced much of that work to suppliers, car executives and analysts have said. Anderson said GM is developing its new “central compute” model in-house, giving the company more control over updates ​and functionality.

“The world opens up when you control the software across the system in a way that it ​never was when ⁠various suppliers controlled” the car’s digital connections, Anderson said.

TARGETING HIGHER PROFIT MARGINS
Automakers reap average profit margins of around 10% selling vehicles. Software-related services can reach 30% to 40% margins, according to analysis firm PwC.

In a report last month, UBS estimated GM’s digital revenue will increase to $9.6 billion by 2036, from $3.2 billion this ⁠year. The ​bank called GM’s digital capabilities “an underappreciated and undervalued opportunity.”

Ed Nightingale, GM’s vice president of digital ​products, said GM aims to offer car owners appealing features, because it can’t start “charging for something as part of the core experience that you've always had.”

GM said it will introduce ​an AI assistant on the Cadillac Lyriq SUV in the coming months.

Electronic Arts is planning to close BioWare, the developer of the "Mass Effect" series ​of games, and lay off employees ‌to focus on more lucrative projects, the company said on Wednesday in an email to employees.

Here ​are some details:

EA said it would cancel an ​early-stage "Mass Effect" project and close BioWare's ⁠studio in Edmonton, Canada, marking the end ​of the developer known for role-playing game franchises ​such as "Dragon Age"

EA is planning to cut around 400 jobs, about 3% of its total staff, including ​roughly 50 at BioWare, Bloomberg News ​reported on Wednesday, citing a person familiar with the ‌company’s ⁠plans

The videogame publisher said it would concentrate on fewer large-scale action-adventure games, while continuing development of "Marvel's Iron Man" and the next "Star Wars ​Jedi" game

EA ​also said it ⁠was restructuring the team behind skateboarding simulation "skate." into a smaller, more focused ​studio

The company said it would help affected ​employees ⁠explore other opportunities within EA

EA was taken private in a $55 billion deal led by ⁠Saudi ​Arabia's Public Investment Fund, Silver ​Lake and Affinity Partners, which closed in August

In the case of United Parcel Service (UPS +1.72%), it's all about adjusted operating profit margin. This key number lies at the heart of the company's transformational strategy, which entails reducing less-profitable Amazon deliveries in favor of higher-margin e-commerce deliveries, particularly in targeted markets such as healthcare and small and medium-sized businesses (SMBs).

At the same time, UPS's investments in smart facilities and automation are intended to improve productivity and, ultimately, margins. Everything points to margin expansion, but is it working out like that for UPS right now? Let's find out.

UPS changes guidance In the fourth-quarter earnings presentation in January, management forecast full-year revenue of $89.7 billion and an adjusted operating profit margin of 9.6%, implying $8.611 billion in adjusted operating profit. The headline guidance was maintained on the first-quarter earnings call in April. Still, on the second-quarter earnings call, management increased its full-year revenue guidance to $91.2 billion and specifically said that adjusted operating profit would be about $8.65 billion.

UPS United Parcel Service$100.21+$1.69 (+1.72%)

NYSE · As of 2:47 PM ET 10/21/26

Why the guidance change isn't good news Superficially, it's an increase in revenue guidance and also an increase over the implied guidance of $8.611 billion I calculated above. However, there are two key considerations for investors, and they matter a lot for the upcoming results of a company with a near-7% dividend yield.

First, the new guidance implies an adjusted operating margin of 9.48%, down from the 9.6% initially forecast. Second, it's important to understand the nuance of the guidance change. As previously discussed, due to rising fuel costs, UPS raised fuel surcharges by $1.173 billion in the first half. Bearing in mind that the increase in full-year revenue guidance was $1.5 billion to $91.2 billion, it's reasonable to expect a large chunk of the revenue increase is due to the fuel surcharge.

Turning to the difficult question of how much profit UPS is making from the fuel surcharges, its fuel cost and third-party costs increased by $744 million, resulting in a net difference of $429 million -- a figure slightly more than the increase in adjusted operating profit guidance.

Image source: Getty Images.

To be clear, management's position is that the fuel surcharge is intended solely to cover increased fuel costs, and there are associated costs related to fuel disruptions as well. Moreover, CFO Brian Dykes argued that "the net impact to consolidated operating profit dollars was modest" on the second-quarter earnings call.

In the absence of knowing exactly what kind of figure "modest" implies, it could be argued that the combination of a positive contribution from fuel surcharges over fuel cost -- something not likely to prove sustainable -- actually implies a significant decrease in adjusted operating profit margin if the impact of fuel is taken out.

The key metric to look out for As noted, this is the year when UPS should start to build on margin improvement, not least because it finished the so-called "glide down" of Amazon deliveries by 50% (volume) from the start of 2025 to the middle of 2026. That's why investors are so focused on margin, particularly the expected adjusted operating profit margin in the U.S. domestic package segment.

I've replicated what the Wall Street consensus, according to S&P Global Market Intelligence, is expecting for the segment, and the company's total adjusted operating margins will be below. As is often the case with Wall Street estimates, the full-year U.S. Domestic Package margin guidance mirrors management's 7.5% guidance given on the last earnings call.

Adjusted Operating Profit

Q1 2026

Q2 2026

Q3 2026 Est

Q4 2026 Est

Full Year 2026 Est

U.S. Domestic Package

4%

7.96%

6.98%

10.56%

7.53%

Total company

6.24%

9.21%

8.92%

12.65%

9.4%

Data source: S&P Global Market Intelligence.

Watch UPS's margin guidance All told, in the absence of management disclosing the exact figure, it's hard to know exactly how much fuel surcharges are adding to the blue chip stock's profitability. However, management has guided to a full-year U.S. Domestic Package adjusted operating profit margin of 7.5%, and the implied total company adjusted operating margin guidance is 9.48%.

Any failure to maintain those figures or meet the Wall Street analyst consensus in the table in the third quarter would suggest its margin trajectory isn't quite what most hope for. That said, if UPS beats both expectations, the margin expansion story will support the case for the stock.

4 Stocks With Demand So Sticky That the AI Sell-Off Barely Touched Them at AllMicron Technology NASDAQ: MU outlined a technology and product roadmap centered on rising artificial-intelligence memory and storage requirements, including plans for next-generation DRAM, high-bandwidth memory, NAND and advanced packaging technologies.

During the company’s technology and product leadership webinar, President and Chief Technology and Products Officer Scott DeBoer said AI is changing the role of memory from a supporting component to a central constraint on system performance, capacity and cost per token. He said Micron aims to advance memory, storage and compute together through higher bandwidth, larger capacities, improved power efficiency and closer product collaboration with customers.

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DRAM roadmap and 3D transition The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance AnywayDeBoer said Micron’s 1-gamma DRAM node is in high-volume manufacturing and will serve as the foundation for products introduced over the coming 12 months. The company expects its 1-delta DRAM node to enter volume production in the second half of 2027, targeting a mid-20% percentage improvement in bit density while optimizing the technology for AI-oriented products including HBM5, vertical HBM and vertical edge inference memory.

Micron also described work on 1-epsilon, 1-zeta and eta-generation technologies, including wafer bonding, High-NA EUV, new materials and other process innovations. DeBoer said the company has confidence in several additional generations of planar DRAM scaling before introducing 3D DRAM.

MarketBeat Week in Review – 10/12 - 10/16While Micron has 3D DRAM on its roadmap, DeBoer said deployment timing will depend on cost, complexity and device-performance considerations. He pushed back on the view that 4F² DRAM architectures inherently provide a density advantage over 6F² designs, saying capacitor pitch is the foundational determinant of DRAM bit density.

“When we look out from Micron’s point of view as the leading-edge technology company, when we look at scaling 4F² beyond where we’re sitting today, it’s physics,” DeBoer said during the question-and-answer session. “There’s fundamental problems with 4F² scaling, that ultimately will lead to 3D DRAM coming in instead of 4F².”

HBM expansion and vertical memory Micron said it is in high-volume manufacturing with HBM4 and is developing both standard and customized HBM products. The company expects custom HBM designs to incorporate customer-specific memory and logic intellectual property into the base die, while standard HBM products will remain part of the market.

The company also described a future category called vertical HBM, in which memory is integrated directly on top of processing units. DeBoer said the architecture is intended primarily to deliver substantially greater bandwidth, while capacity will scale at a different pace because of thermal-management challenges.

Advanced packaging and hybrid bonding will be increasingly important to those products, according to Micron. DeBoer said hybrid bonding is necessary as interconnect pitches tighten, and he cited both bandwidth and thermal benefits. The company is also developing higher-stack HBM designs and thermal technologies, including heat spreaders positioned over hotter areas of an HBM base die.

Micron said it will use foundry nodes for future standard and custom HBM base dies. DeBoer said HBM4 did not require more advanced CMOS for Micron to achieve its power and performance objectives, but HBM4E will require more advanced CMOS to meet speed and power requirements.

New DRAM and NAND products Micron highlighted several forthcoming DRAM offerings. LPDDR6 is expected to provide 35% better power performance than LPDDR5, with greater improvement on some densities, according to the company. Micron also said it is working with customers on DDR6, which it described as offering twice the bandwidth of DDR5, and plans a 1-terabyte RDIMM following its recently sampled 512-gigabyte DDR5 RDIMM.

On NAND, Micron said its Generation 11 technology will ramp in the second half of 2027. The company said G11 will more than double bit density compared with its Generation 9 NAND, target 1.5 times the I/O speed and reduce data-transfer energy. The node will use wafer-on-wafer bonding and have more than 400 layers.

Micron is also pursuing what it calls AI-class NAND in two areas:

High-IOPS, SLC-based NAND designs using small blocks for ultra-fast storage products. High-bandwidth NAND using TSV-stacked NAND and logic dies positioned closer to compute resources. DeBoer said the company will determine the appropriate designs in collaboration with customers, given different performance and cost requirements across data center, automotive and edge applications.

AI tools, investment and customer collaboration Micron said it is using AI internally to speed product development and manufacturing execution. DeBoer cited a data center controller design that moved from silicon to tape-out in half the time of the prior generation, as well as a data center SSD development effort completed with 60% less time than the preceding generation.

The company also pointed to longer-term investments, including expanded Micron Ventures activity, work at Albany NanoTech on advanced lithography and a previously announced $10 billion, 10-year commitment to Micron Research Labs. DeBoer said the company is collaborating with partners ranging from startup Liqid to Meta, with Micron and Meta recently publishing a white paper focused on optimizing LPDDR6 for data centers.

In response to questions about AI system design, DeBoer said memory configurations will vary across training, inference, edge and rack-scale deployments. However, he said the underlying principle remains that more memory content and bandwidth improve system performance. He added that Micron does not expect memory supply to come into balance over the next two years, citing prior comments by company leadership.

About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.

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

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Coinbase shares have been cut nearly in half over the past year, yet one staggering market projection sits at the heart of the bull case and could justify a dramatic reversal if it plays out.

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Our 24/7 Wall St. price target for Coinbase (NASDAQ:COIN | COIN Price Prediction) is $228.27 over the next 12 months. From the current price of $169.27, that means 34.86% upside. Our model rates the stock a buy with moderate confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $169.27 Price Target from 24/7 Wall St. $228.27 Upside/Downside 34.86% Recommendation BUY Confidence Level 50% That target may look high for a stock with back-to-back GAAP losses. The bull case rests on one very big number: a stablecoin market that Coinbase expects to grow from $300B to $3T by 2030. Through USD Coin (CRYPTO:USDC) economics and its Base blockchain, Coinbase sits close to the center of that market.

A Steep One-Year Slide Meets Multi-Year-Low Volatility Shares fell 5.32% over the past week and 12.07% over the past month. They are down 24.47% year to date and 49.17% over one year, inside a 52-week range of $139.11 to $373.25.

Second-quarter revenue came in at $1.22B, down 18.5% year over year and short of the $1.29B consensus. EPS was -$1.36, missing the -$0.2278 estimate, as spot volume fell 25% from the prior quarter.

There were bright points, though. Trading market share reached an all-time high of 10.3%, and adjusted EBITDA of $207.8M was positive for the 14th consecutive quarter.

Why Bulls See $341 Ahead Our bull case reaches $341.59. Stablecoins do much of the work.

CEO Brian Armstrong said Base processed about “$32 trillion in the last 12 months of stablecoin transfer volume,” and average USDC held in Coinbase products hit $20B. Tokenized real-world assets, which Coinbase projects could grow to $16T by 2030, add a second path to growth.

Prediction markets topped $100M annualized, and Coinbase One “passed a million subscribers.” CFO Alesia Haas pointed out that subscriber growth happened “during a down market.” Among analysts, 4 rate the stock Strong Buy and 19 rate it Buy.

What Could Go Wrong for Coinbase Our bear case is $197.35, but a retest of the 52-week low is a real risk. Transaction revenue tracks volatility, and Q3 transaction revenue through July 26 was only about $130M. Rate cuts squeeze stablecoin income, and long-term debt has climbed to $7.2B.

One analyst rates the stock Sell and 1 rates it Strong Sell. There is a counterpoint: much of the Q1 loss came from $482.4M in losses on crypto held for investment, which were largely non-cash. Cash also stands at $8.61B.

Coinbase vs. Robinhood, Interactive Brokers and CME Group Company Forward P/E Quarterly Revenue Growth (YoY) Coinbase N/A -18.5% Robinhood 45x 32.3% Interactive Brokers 28x 13.5% CME Group 22x 0.8% Robinhood Markets (NASDAQ:HOOD) competes directly with Coinbase for retail crypto and stock investors. It is valued at $88.89B, compared with Coinbase’s $38.02B, which shows what the market pays for multi-asset growth.

Interactive Brokers (NASDAQ:IBKR) is a brokerage with steadier growth, and its 1.37 beta contrasts sharply with Coinbase’s.

CME Group (NASDAQ:CME) lists crypto futures, which makes it the benchmark for Coinbase’s derivatives ambitions through Deribit. CME earns a 63.4% profit margin. Next to these peers, our target looks reasonable if transaction revenue recovers.

BUY Rating Rests on Stablecoin Scale The 24/7 Wall St. price target of $228.27 carries a buy rating at 50% confidence. What tips the scale is subscription and services revenue, now 48% of net revenue.

I’d grow more constructive if crypto volatility comes back while USDC balances keep rising. I’d stay cautious if the next earnings report shows another quarter of shrinking transaction revenue. The stablecoin opportunity outweighs the cyclical risk overall.

Here is where our model projects Coinbase could trade if current growth trends and market conditions hold over the longer term.

Year Base Case Bull Case 2026 $179.50 $207.42 2027 $237.29 $333.50 2028 $285.68 $522.93 2029 $313.37 $687.60 2030 $394.06 $857.39 These projections hinge on Coinbase continuing to carry out its Everything Exchange strategy. Results could land well above or below these figures depending on stablecoin adoption, crypto volatility and the outcome of the Clarity Act.

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Ondo Finance tokenized instruments reached 166,723 active addresses over 30 days, up 100.16% in three months, passing PayPal's PYUSD stablecoin in active users.

Ondo Finance's tokenized instruments have doubled their on-chain user base in three months, according to on-chain data. The products recorded 166,723 active addresses over the last 30-day period, a 100.16% increase from 83,295 active addresses three months earlier.

The figure puts Ondo's on-chain presence ahead of the active user base of PayPal's dollar stablecoin, $PYUSD, which has a market capitalization of $2.86 billion.

What is driving Ondo's growthOndo began by tokenizing U.S. Treasuries and now offers a wider range of products. Ondo Finance said the total value locked across its products has crossed $4 billion, a milestone driven by growth in tokenized stocks and exchange-traded funds (ETFs). The company said more than $1.3 billion of that total now sits in tokenized stocks and ETFs, and that its products have drawn more than 1 million cumulative holders.

Ondo's Treasury business is also expanding. Crypto Briefing reported, citing Token Terminal data, that Ondo added $41.6 million in market cap over seven days, ahead of Superstate at $34.2 million. The same report said Ondo crossed $3 billion in tokenized U.S. Treasury assets on October 13, 2026, with its USDY product accounting for about $2.328 billion of that total.

Ondo's reach across networks may also be helping user numbers. According to a KuCoin News summary of Ondo's disclosure, Ondo Stocks can be transferred permissionlessly on Solana, Ethereum and BNB Chain.

How PYUSD comparesPayPal USD is a regulated stablecoin. CoinMarketCap describes $PYUSD as issued by Paxos Trust Company and backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents. Its market capitalization has hovered near the $2.8 billion to $2.9 billion range in recent weeks, according to market data aggregators such as Bybit, which listed $2.84 billion as of October 20, 2026.

The comparison is limited. Active addresses measure wallet activity, not the amount of capital held, and the two products serve different purposes. PYUSD is a payments-oriented stablecoin, while Ondo's instruments are investment products such as tokenized Treasuries and stocks. Address counts can also vary depending on the data provider and how activity is measured.

Even so, the jump in active addresses points to growing demand for tokenized real-world assets (RWAs), as issuers expand from Treasuries into equities and other asset classes.

SourcesOndo Finance Says Total Value Locked Has Topped $4 Billion (Yahoo Finance)
Ondo and Superstate lead weekly growth in tokenized US T-bill market (Crypto Briefing)
PayPal USD price and statistics (CoinMarketCap)