Track market-moving stories before they get noisy

Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) is expected to report second quarter results that come in slightly ahead of expectations, with Wedbush analysts pointing to strong revenue trends and continued demand for advanced semiconductor technologies as potential drivers for a stronger outlook.

Wedbush reiterated its ‘Outperform’ rating ahead of TSMC’s earnings, writing that the company’s monthly revenue figures indicate it likely exceeded the firm’s prior second-quarter top-line estimate by around 1%, similar to the previous quarter’s performance.

The analysts expect gross margins to have at least reached the midpoint of TSMC’s prior guidance range, noting that results appeared to track closely with expectations throughout the quarter.

Looking ahead, Wedbush expects TSMC could provide an improved revenue outlook for the full year. The company previously guided for sales growth of more than 30% in US dollar terms, while revenue growth has been tracking in the high-30% range year-to-date. Wedbush wrote that the ramp of TSMC’s 2-nanometer process technology in the second half of 2026 could support at least mid-30% annual sales growth.

The analysts added that such an outcome could lead to higher 2026 estimates and reduce the magnitude of the slowdown they currently model for 2027.

Wedbush also highlighted gross margins as a key area to monitor, with the firm and consensus forecasts currently expecting some pressure in the second half of the year due to the 2nm launch and expanded overseas manufacturing capacity. The analysts wrote that third-quarter guidance should provide more visibility into how those factors will affect profitability, while recent currency movements could provide some benefit.

Capital spending will also be closely watched, with Wedbush writing that sustained demand for advanced nodes could prompt TSMC to raise its annual capex outlook again. The analysts noted that this would further support the view that current 2027 revenue growth expectations may be too conservative.

Wedbush wrote that TSMC remains one of its preferred hardware investments, citing the company’s position in advanced semiconductor manufacturing and packaging as a key beneficiary of the ongoing AI data center build-out and future edge AI opportunities across areas including optics, robotics, automotive technology and electronic design automation.

Shares of TSMC traded hands at $417 on Wednesday afternoon, having gained more than 37% so far this year.

JPMorgan believes the new Hyperliquid partnership will weigh on earnings for both firms, yet says pro-crypto legislation backed by President Donald Trump‘s administration could ultimately prove to be the more important story for investors.

Hyperliquid Changes The EconomicsCoinbase and Circle announced in May that Hyperliquid would adopt USDC as its preferred stablecoin, a move designed to deepen the token’s presence across one of crypto’s fastest-growing decentralized exchanges.

The catch? JPMorgan says the revised arrangement significantly changes how the two companies split the economics.

Coinbase will now classify USDC held on Hyperliquid as “on-platform,” allowing it to earn reserve income before paying 90% of that revenue back to Hyperliquid. The firm estimates roughly $6 billion of USDC, or about 8% of the circulating supply, now sits on the platform.

The result is a near-term revenue headwind for both companies, prompting JPMorgan to lower earnings estimates. The brokerage now expects the full impact of the revised economics to become more visible during the second half of 2026, alongside a softer crypto trading environment marked by lower volumes, weaker digital asset prices and declining DeFi activity.

The Prisoner’s DilemmaJPMorgan argues the Hyperliquid deal highlights a broader challenge for the Coinbase-Circle partnership.

Rather than simply sharing the benefits of USDC adoption, both companies are incentivized to compete for distribution partners. Winning those relationships could increasingly require giving away a larger share of the economics, creating what the analysts describe as a classic “prisoner’s dilemma.”

In other words, USDC adoption may continue to grow while the value each company captures from that growth gradually shrinks.

Washington May Be The Bigger CatalystThat’s why JPMorgan believes investors shouldn’t lose sight of the bigger picture.

The firm continues to view U.S. digital asset market structure legislation as a potential turning point for the industry, even as the path to passage becomes more uncertain with the Senate’s legislative calendar narrowing ahead of its August recess.

Clearer crypto rules could encourage greater institutional participation, improve market confidence and accelerate development across the digital asset ecosystem—all of which could expand demand for USDC.

JPMorgan also expects higher interest rates to support reserve income through 2027, particularly for Coinbase, even after trimming its forecasts for USDC balances.

For investors, Hyperliquid may explain the next few quarters. But if Trump’s crypto agenda succeeds in creating a clearer regulatory framework, the long-term winner may not be the company that negotiated the better deal—it could be the one serving a much larger stablecoin market.

Photo: Skorzewiak on Shutterstock.com

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A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have lost about 17.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Dave & Buster's Entertainment, Inc. before we dive into how investors and analysts have reacted as of late.

Dave & Buster's Q1 Earnings & Revenues Miss EstimatesDave & Buster's reported weak first-quarter fiscal 2026 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. Both metrics also declined on a year-over-year basis.

The quarter was primarily weighed down by weaker customer demand at existing locations, as reflected in lower comparable-store sales. This softness, particularly in the company's core entertainment segment, contributed to an overall decline in revenues. At the same time, profitability came under pressure due to higher labor, administrative and depreciation-related expenses, which compressed operating margins.

Despite a challenging quarter, Dave & Buster's highlighted several encouraging developments. Management noted that its back-to-basics strategy is gaining traction, with improvements across food and beverage offerings, marketing initiatives and the refreshed remodel program contributing to a stronger guest experience. The company continued to execute on its growth strategy through new store openings, remodel activities and international franchise expansion.

Dave & Buster’s Q1 Earnings & RevenuesFor the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 22 cents, which missed the consensus mark of 37 cents by 40.5%. In the year-ago quarter, it had reported an adjusted EPS of 76 cents.

Quarterly revenues of $559.2 million missed the consensus estimate of $571 million by 2.1% and declined 1.5% year over year. The top line was pressured by a $29.2 million decline in comparable store revenues, partly offset by an $18.1 million increase in noncomparable store revenues.

Dave & Buster’s Sales Mix Shows DivergenceFood and Beverage revenues (38.3% of total revenues in the reported quarter) increased 6.5% year over year to $214.1 million. The company cited eat-and-play combo enhancements and menu changes made in the second half of fiscal 2025 as factors supporting higher food attach rates and check growth. Our estimate was $202.5 million.

Entertainment revenues (61.7%) fell 5.9% year over year to $345.1 million. Our estimate was $373.1 million.

Comparable store sales (including Main Event-branded locations) declined 5.4% year over year. Management attributed the decline in comparable store revenues to a reduction in walk-in business relative to the prior-year period.

Dave & Buster’s Q1 Operating HighlightsOperating income totaled $46.9 million compared with $63.2 million in the year-ago quarter. Operating margin declined to 8.4% from 11.1% reported in the first quarter of fiscal 2025. Our estimate for operating income was $43 million.

Adjusted EBITDA came in at $123.2 million compared with $136.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 22% from 24%, reflecting softer sales leverage and higher operating cost pressure.

Dave & Buster’s Balance Sheet and Cash FlowCash and cash equivalents were $19.6 million as of May 5, 2026, compared with $16.6 million as of Feb. 3, 2026. Long-term debt, net, was $1.50 billion compared with $1.52 billion at fiscal 2025-end. The company ended the quarter with $499.1 million of available liquidity, consisting of cash and availability under its $650 million revolving credit facility.

Net cash provided by operating activities improved to $113.8 million from $95.8 million in the prior-year period, mainly due to working-capital timing, partly offset by lower net income. Capital expenditures were $105.3 million, down from $154.6 million. Adjusted free cash flow was positive $25.3 million against negative $58.8 million in the year-ago quarter.

PLAY’s Store Growth and OutlookThe company opened one new domestic store in the first quarter and has opened three additional domestic stores in the second quarter. It has completed remodels of six Dave & Buster’s stores so far in fiscal 2026 and expects to complete two more during the remainder of the year.

International franchise growth also continued. Dave & Buster’s opened its fifth international franchise store in May and sixth in June, and expects at least one more opening during the remainder of fiscal 2026. Management said its back-to-basics strategy is gaining traction across food and beverage, marketing and remodels, and reiterated confidence in generating more than $100 million in free cash flow in fiscal 2026.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -22.22% due to these changes.

VGM ScoresCurrently, Dave & Buster's has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Dave & Buster's has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerDave & Buster's is part of the Zacks Retail - Restaurants industry. Over the past month, Cracker Barrel Old Country Store (CBRL - Free Report) , a stock from the same industry, has gained 22%. The company reported its results for the quarter ended April 2026 more than a month ago.

Cracker Barrel reported revenues of $797.37 million in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.29 for the same period compares with $0.58 a year ago.

For the current quarter, Cracker Barrel is expected to post a loss of $0.33 per share, indicating a change of -144.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.7% over the last 30 days.

Cracker Barrel has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

A broad selloff hit AI-linked hardware and chip stocks on Wednesday as investors locked in gains from a months-long rally and questioned how long red-hot demand for AI infrastructure can support current valuations.

Dell Technologies Inc (NASDAQ:DELL) fell as much as 12%, touching a session low of $397.69, after a report that Meta Platforms is developing plans to lease out surplus AI training and inference capacity to enterprise customers. The news stoked concern that hyperscale cloud providers may have over-built data center infrastructure, a development that could slow future server orders for system integrators such as Dell.

Rising memory costs added to the pressure on Dell's margins, given that AI-optimized servers already carry lower gross margins than the company's traditional hardware lines. GF Securities recently downgraded the stock to "Hold" from "Buy," citing a stretched valuation after shares had rallied roughly 200% and traded near 34 times forward earnings. Extensive insider selling, totaling about $1.56 billion over three months with no offsetting purchases, has also weighed on sentiment.

Micron Technology Inc (NASDAQ:MU) dropped about 9%, extending losses as investors weighed reports that Washington is considering tighter unilateral restrictions on exports of high-bandwidth memory products, a step that would carry direct implications for the chipmaker's international revenue. Competition from Chinese memory manufacturers has also been cited as a growing longer-term threat to Micron's pricing power.

SanDisk (NASDAQ:SNDK) shares slid sharply after a research firm cut its near-term outlook for the NAND flash market, pointing to average selling prices falling faster than previously expected. That shift reinforced concern that the memory industry's supply-demand balance is tipping toward a surplus as capacity expansions across the sector outpace demand from enterprise and consumer electronics customers.

Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) shares also fell, caught up in the broader retreat across semiconductor and memory names. The stock has been especially sensitive to swings in sentiment after more than doubling year-to-date on optimism around its EPYC server processors and Instinct AI accelerators, leaving it vulnerable to profit-taking once the mood in AI hardware shifted.

The declines mark the latest bout of volatility in a sector that has posted extraordinary gains through 2026 on the back of surging AI infrastructure spending. Traders and analysts described Wednesday's moves largely as a valuation reset rather than a sign of a broader breakdown in AI demand, though the Meta capacity report and renewed scrutiny of hardware margins have added a fresh layer of uncertainty heading into the next round of quarterly earnings.

Key Takeaways Cenovus targets production above 1 million BOE/d by 2028 through multiple growth projects. Christina Lake North's redevelopment well program began ahead of schedule and should lift output this year.Cenovus' integrated assets and pipeline access help secure better pricing during market volatility. Cenovus Energy (CVE - Free Report) is an integrated energy company based in Canada, with its operations spanning the upstream and downstream segments. CVE’s upstream production is primarily supported by its oil sands assets, which are characterized by a low cost of production and a long reserve life. Following the acquisition of MEG Energy, Christina Lake North has emerged as one of Cenovus' most important growth assets, strengthening its long-term production outlook.

In its first quarter earnings call, CVE mentioned that the redevelopment well program at Christina Lake North started ahead of schedule and is expected to deliver a meaningful production increase throughout the rest of the year. Cenovus is also pursuing other key growth projects, including the Foster Creek optimization, Sunrise optimization and the West White Rose project, which are expected to contribute to its target of producing more than 1 million barrels of oil equivalent per day (BOE/d) by 2028. With multiple growth projects under development and a portfolio of long reserve-life assets, Cenovus is well positioned to deliver sustainable production growth and generate meaningful cash flows over the long term.

The company's upstream business also stands to benefit from the current strength in crude prices, driven by the escalating geopolitical tensions in the Middle East. Cenovus’ production mostly comprises heavy crude, which is typically priced against the Western Canadian Select (“WCS”) benchmark. While WCS usually trades at a discount to the West Texas Intermediate (WTI), the overall commodity price environment currently remains favorable for upstream players.

Moreover, CVE’s access to downstream infrastructure and pipeline capacity allows it to mitigate the risk of heavy crude price dislocations by gaining access to premium markets and realizing better pricing. The integrated nature of its business supports its profitability during volatile times.

Other Canadian Integrated Energy CompaniesSuncor Energy (SU - Free Report) is a leading Canadian integrated energy player whose operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. The company’s integrated business model, spanning upstream production and downstream refining, provides resilience across commodity cycles, supporting profitability and cash flow generation.

Imperial Oil Limited (IMO - Free Report) is another leading integrated energy company headquartered in Canada. IMO’s operations span across exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil Corporation holds an approximately 71% stake in the Canadian operator.

CVE’s Price Performance, Valuation & EstimatesShares of CVE have jumped 102% over the past year compared with the 73.5% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.79X. This is below the broader industry average of 7.15X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CVE’s 2026 earnings has seen downward revisions over the past seven days.

Image Source: Zacks Investment Research

SU and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CVE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Columbia Sportswear expects mid-single-digit global wholesale growth in the second half of 2026.Women's business and footwear orders grew double digits, while Amaze and ROC orders more than doubled."Engineered for Whatever" and digital campaigns are strengthening engagement and brand positioning. Columbia Sportswear Company’s (COLM - Free Report) ACCELERATE strategy is showing encouraging signs of traction as its investments in product innovation and brand engagement begin to resonate with consumers. Early indicators suggest that newer products and marketing initiatives are resonating well with shoppers, while retailer demand for ACCELERATE products is strengthening.

In the first-quarter 2026 earnings call, Columbia Sportswear highlighted its improving Fall 2026 order book as an important sign of the strategy’s progress. The company expects mid-single-digit global wholesale growth in the second half of 2026, with the U.S. order book coming in stronger than initially anticipated. The company said stronger demand for ACCELERATE products helped boost its Fall 2026 order book.

The strategy is also reshaping Columbia Sportswear’s product portfolio. The company reported double-digit growth in women's business and footwear orders, while premium product platforms such as Titanium and Omni-Heat Arctic continue to gain traction. New product franchises, including Amaze and ROC, have more than doubled orders from the prior year, reflecting growing acceptance of the refreshed product lineup.

Marketing remains another key pillar of the ACCELERATE strategy. The "Engineered for Whatever" campaign and digital initiatives are helping strengthen consumer engagement and reinforce Columbia Sportswear’s refreshed brand positioning. The company also highlighted growing momentum in its Performance Fishing Gear business, supported by targeted marketing efforts and strong demand for products such as the Bahama shirt and Dry Tortuga Boot.

Overall, Columbia Sportswear’s ACCELERATE strategy appears to be gaining traction through stronger product innovation, encouraging retailer response and deeper consumer engagement, reflecting early progress in its efforts to elevate the Columbia brand and attract younger, more active consumers.

Columbia Sportswear’s Zacks Rank & Share Price PerformanceThis Zacks Rank #2 (Buy) stock has gained 8.2% in the past three months against the broader Consumer Discretionary sector and the industry’s decline of 5.8% and 1.2%, respectively. COLM has also outperformed the S&P 500, which gained 6.8% during the same period.

COLM Stock's Past 3 Months' Performance
Image Source: Zacks Investment Research

Is COLM a Value Play Stock?Columbia Sportswear currently trades at a forward 12-month P/E ratio of 15.21, above the industry’s average of 14.93. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.

COLM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Other Key PicksDuluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DLTH’s current fiscal-year EPS indicates growth of 39.5% from the year-ago number. Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average.

Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. At present, the company holds a Zacks Rank of 2. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average.

The Zacks Consensus Estimate for VNCE’s current fiscal-year EPS indicates growth of 34.1% from the year-ago number.

Ralph Lauren Corporation (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2. RL delivered a trailing four-quarter earnings surprise of 9.1%, on average.

The Zacks Consensus Estimate for Ralph Lauren’s fiscal-year EPS indicates growth of 10.5% from the year-ago number.

Key Takeaways CRUS expects another year of strong PC growth in fiscal 2027 after share gains across all PC categories.Cirrus Logic sees SDCA designs contributing nearly 80% of PC revenue in fiscal 2027 as adoption grows.CRUS guided Q1 fiscal 2027 revenue of $430M-$490M, implying 13% year-over-year growth at midpoint. Cirrus Logic, Inc.'s (CRUS - Free Report) PC business is emerging as an important growth driver, and management expects this momentum to continue into fiscal 2027. During fiscal 2026, the company delivered strong year-over-year revenue growth in its PC segment, supported primarily by share gains across all PC categories. Cirrus Logic expanded its product portfolio by introducing new amplifiers and codecs designed for a broader range of platforms, including mainstream and AI-enabled PCs.

The company also highlighted that voice will play an increasingly important role in enabling agentic interactions across edge devices, including PCs, and plans to leverage its expertise in audio and high-performance mixed-signal technologies to enhance AI-driven user experiences. With robust design momentum across its PC portfolio, management expects increased adoption of the SoundWire Device Class Audio (SDCA) interface and higher content per device to support another year of strong PC business growth in fiscal 2027.

On the last earnings call, management stated that the PC business grew from revenue in the low tens of millions of dollars in fiscal 2025 to the $40 million range in fiscal 2026. The company exited fiscal 2026 with strong momentum and is now shipping products to the top six laptop vendors. Cirrus Logic identified the ongoing transition from the legacy HDA audio interface to SDCA as a key growth driver. During fiscal 2026, SDCA-related revenue tripled and accounted for nearly 60% of total PC revenue after passing an important inflection point. The company expects SDCA-based designs to contribute nearly 80% of its PC revenue in fiscal 2027, reflecting continued customer adoption of the newer interface.

The company also noted that its penetration into mainstream PC devices continues to improve. While this segment represented only a small portion of revenue in previous years, Cirrus Logic expects more than half of its PC revenue in fiscal 2027 to come from mainstream devices. Management stated that customer design activity remains strong and believes the company can deliver another year of solid PC growth even if the broader PC market experiences some moderation. Cirrus Logic added that its focus on leading OEMs and higher-tier devices provides confidence in the continued expansion of its PC business during fiscal 2027.

For the first quarter of fiscal 2027, the company expects revenues between $430 million and $490 million, implying 3% sequential increase and 13% year-over-year growth at the midpoint of the guidance range.

Taking a Look at CRUS’ CompetitorsQualcomm Incorporated (QCOM - Free Report) continues to pivot from a handset-centric model toward a broader connected processor portfolio. Solid traction in the automotive business augurs well, with more than 1 million cars operating ADAS and autonomy on Snapdragon Ride processors. Higher content per vehicle on the Snapdragon Digital Chassis, broader edge AI adoption across devices and data center traction are positives. The Alphawave buyout adds high-speed wired connectivity IP and custom silicon capabilities to help accelerate its expansion into data centers. For the third quarter of fiscal 2026, Qualcomm guided revenues of $9.2-$10.0 billion and non-GAAP earnings of $2.10-$2.30, reflecting expected softness tied to the same memory-driven OEM behavior that shaped the March quarter.

Skyworks Solutions, Inc. (SWKS - Free Report) is gaining momentum in Broad Markets, helped by Wi-Fi 7 adoption, automotive infotainment wins and timing products tied to higher data center data rates. Management cited nine consecutive quarters of Broad Markets growth and expects the segment to rise modestly sequentially in the June quarter. In Mobile, a multi-generational design win with a leading Android OEM extends the premium pipeline and supports a steadier content outlook beyond the next seasonal cycle. For the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million. Management anticipates mobile to decline low single digits sequentially, consistent with typical seasonality, while Broad Markets is expected to rise modestly sequentially and represent about 43% of sales, up high single digits year over year.

CRUS Price Performance, Valuation and EstimatesShares of CRUS have lost 14.6% in the past month compared with the Electronics-Semiconductors industry’s decline of 4.6%.

Image Source: Zacks Investment Research

CRUS is trading at a forward 12-month price/earnings ratio of 16.76, lower than the Electronic-Semiconductors sector’s multiple of 32.13.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRUS’ earnings for fiscal 2027 has been revised up marginally over the past 60 days.

Image Source: Zacks Investment Research

CRUS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TE Connectivity (TEL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis electronics maker is expected to post quarterly earnings of $2.85 per share in its upcoming report, which represents a year-over-year change of +25.6%.

Revenues are expected to be $4.95 billion, up 9.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for TE Connectivity?For TE Connectivity, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.18%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that TE Connectivity will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that TE Connectivity would post earnings of $2.7 per share when it actually produced earnings of $2.73, delivering a surprise of +1.11%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TE Connectivity appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerVicor (VICR - Free Report) , another stock in the Zacks Electronics - Miscellaneous Components industry, is expected to report earnings per share of $0.62 for the quarter ended June 2026. This estimate points to a year-over-year change of -31.9%. Revenues for the quarter are expected to be $138.7 million, down 1.7% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Vicor has been revised 4.2% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Vicor will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways SharkNinja is using AI to enhance innovation, marketing, operations and consumer insights.SharkNinja's AI initiative includes company-wide training, Hack Week and a $1 million prize fund.SN reported 15.6% first-quarter net sales growth and increased its full-year 2026 sales growth outlook. SharkNinja, Inc. (SN - Free Report) is making artificial intelligence (AI) a cornerstone of its long-term growth strategy, viewing the technology as a catalyst to transform every aspect of its business. On its first-quarter 2026 earnings call, the company said that AI will reshape consumer insights, product development, marketing, demand generation, supply chain management and its omnichannel strategy. Management believes AI will help employees automate routine tasks, improve decision-making and devote more time to strategic innovation.

To accelerate adoption, SharkNinja launched JailBreak SharkNinja, a company-wide AI initiative designed to encourage experimentation across the organization instead of limiting AI access to select teams. The program provides AI tools and training to employees at every level, enabling them to develop AI-powered solutions for real business challenges. More than 150 employee submissions have already been received, with participants rewarded for ideas that generate measurable business impact. The company has also committed a $1 million prize fund to recognize breakthrough AI innovations.

The initiative recently culminated in JailBreak Live, a global Hack Week during which employees dedicated an entire week to AI-driven innovation. Teams worked on 20 cross-functional projects spanning product development, quality, commercial operations, revenue growth, supply chain and manufacturing, while more than 400 departmental AI projects engaged thousands of employees worldwide. SharkNinja is also investing in company-wide AI training to develop employees from beginners to advanced level users while actively recruiting the next generation of AI talent to build long-term institutional capabilities.

According to the company, AI is already improving product innovation through deeper consumer insights, enhancing marketing effectiveness by optimizing content creation and media spending, delivering productivity gains across operations and unlocking business intelligence that was previously inaccessible. SharkNinja believes this broad-based AI adoption aligns with its culture of rapid experimentation and continuous innovation, strengthening its ability to respond quickly to evolving consumer needs.

The AI strategy complements SharkNinja's strong financial momentum. The company reported first-quarter 2026 net sales of $1.41 billion, up 15.6% year over year, while international sales increased 31.6%. Encouraged by its operational performance and AI initiatives, SharkNinja raised its full-year 2026 outlook, projecting net sales growth of 11.5-12.5%. Management believes its combination of AI adoption, continuous product innovation and global expansion will strengthen its competitive position and support the company's next phase of profitable growth.

SN’s Price Performance, Valuation & EstimatesShares of SharkNinja have gained 30.5% over the past three months compared with the industry’s 11.7% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, SN trades at a trailing price-to-sales ratio of 3.24X, below the industry’s average of 6.78X. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SharkNinja’s fiscal 2026 earnings implies a year-over-year decline of 15.9%, while the same for fiscal 2027 indicates an uptick of 15.1%. Estimates for fiscal 2026 and 2027 have been remained unchanged and revised upward by 3 cents, respectively, over the past seven days.

Image Source: Zacks Investment Research

SharkNinja currently carries a Zacks Rank #2 (Buy).

Other Key PicksInterparfums, Inc. (IPAR - Free Report) is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Interparfums’ current fiscal-year earnings and sales suggests a decline of 8% and 0.1%, respectively, from the year-ago actuals. IPAR delivered a trailing four-quarter average earnings surprise of 8%.

Sally Beauty Holdings, Inc. (SBH - Free Report) is a specialty retailer and distributor of professional beauty supplies headquartered in Plano, Texas. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings and sales suggests growth of 8.4% and 0.9%, respectively, from the year-ago actuals. SBH delivered a trailing four-quarter average earnings surprise of 10.8%.

Tapestry, Inc. (TPR - Free Report) is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.5% and 13.9%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.

Grupo Aeroportuario Del Pacifico NYSE: PAC said second-quarter 2026 earnings improved despite weaker passenger traffic, as tariff adjustments, directly operated commercial businesses and the initial consolidation of Cross Border Xpress helped offset declines across parts of its airport network.

Chief Executive Officer Raul Revuelta said total passenger traffic across GAP’s 14 airports fell 5.6% from the second quarter of 2025. Even so, revenue excluding construction services rose 4.9%, EBITDA increased 8.4% to MXN 6 billion, and EBITDA margin expanded 230 basis points to 69.3%.

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“While we are not satisfied with the current traffic performance, this quarter demonstrates that GAP is increasingly capable of protecting earnings and generating growth through multiple complementary revenue streams,” Revuelta said.

Traffic Pressured by Jamaica, Puerto Vallarta and Airfare Trends Revuelta attributed the passenger decline to several factors in both Mexico and Jamaica. In Jamaica, he said the company continues to feel the impact of Hurricane Melissa, with hotel capacity along the main tourist corridor still below pre-storm levels. He said hotel reopenings point to an extended recovery through the second half of the year.

In Mexico, Revuelta said airlines managed capacity in response to economic conditions, while rising jet fuel costs pressured airfares. He also cited security concerns affecting international leisure demand for certain beach destinations, including Puerto Vallarta, where international passenger traffic fell 27% during the quarter. GAP is working with airlines and regional tourism stakeholders to rebuild connectivity and travel confidence, he said.

Guadalajara was an exception during the quarter. The city hosted four of five FIFA World Cup matches in June, and Revuelta said Guadalajara Airport successfully handled additional charter flights, national teams, delegations and fans while maintaining normal operations. Traffic at the airport rose 6%, though he said that was partly offset by temporary softness at other GAP airports during the tournament.

Commercial Businesses Drive Non-Aeronautical Growth Aeronautical revenue declined 3.2%, primarily because of lower passenger traffic in Mexico and Jamaica and a 10.9% appreciation of the Mexican peso, which negatively affected the translation of U.S. dollar revenue and international passenger charges. Revuelta said the decline was partly offset by the gradual implementation of maximum tariffs approved for the 2025-2029 regulatory period in Mexico.

Non-aeronautical revenue rose 23.9%, helped by growth in businesses operated directly by GAP and the consolidation of Cross Border Xpress, or CBX, beginning May 1. Excluding CBX, directly operated business lines increased 17% despite lower passenger traffic.

Cargo and bonded warehouse operations grew 22%. Advertising increased 58%. Hotel operations rose 27%. Convenience stores grew 11%. Parking increased 9%. Revuelta said the results show GAP’s commercial strategy “does not solely depend on passengers volume.” He said duty-free and VIP lounges, which are more exposed to international leisure traffic and foreign exchange, remained under pressure but should improve as international traffic recovers.

CBX generated MXN 168 million in revenue during May and June, with more than 626,000 passengers using the facility in both directions. Revuelta said that represented average revenue of $42.8 per passenger, in line with company expectations. He said CBX traffic remained below the prior year but that pricing and the commercial model were resilient.

Guidance Updated for 2026 GAP updated its annual outlook to reflect the CBX consolidation, internalization of technical assistance services, current traffic trends and investment progress. The company now expects passenger traffic to range from a 3% decline to flat growth for 2026. Revuelta said the forecast assumes gradual improvement in the second half but does not assume all airports return to growth at the same time or that Puerto Vallarta and Montego Bay fully recover this year.

The company expects aeronautical revenue to increase 1% to 4%, supported by approved tariffs in Mexico. Non-aeronautical revenue is expected to grow 21% to 24%, driven by GAP-operated businesses and CBX. EBITDA is expected to rise 10% to 12%, with an EBITDA margin of about 67%, plus or minus one percentage point. Revuelta said CapEx is expected to be around MXN 4 billion.

In response to analyst questions, Revuelta said June traffic was affected by higher airfares during the World Cup and by substitution of typical business and leisure travelers with tournament-related passengers. He said some domestic leisure demand appeared to shift into July, and additional seats and route openings should support the second half.

Management Addresses Tariffs, FIBRA and 2027 Outlook Asked about tariff compliance, Revuelta said GAP reached 90% fulfillment of the maximum tariff in the first six months and expects to be around 95% by year-end. He said tariffs changed again on July 1 at Los Cabos and Puerto Vallarta, with domestic passenger charges increasing an additional 7%.

Revuelta said it is still early to provide a 2027 traffic growth range. He cited oil prices and the war in Iran as factors that could affect airline costs and capacity, as well as uncertainty around the proposed Viva and Volaris merger. Still, he said GAP expects growth in coming years and noted that Jamaica hotel capacity is trending toward normalization by the end of 2026.

Chief Financial Officer Saul Villarreal said the company is continuing the approval process for FIBRA GAP, a vehicle intended to subscribe a minority equity interest in the 12 Mexican airport concession areas. Villarreal said the structure is expected to be tax transparent at the Mexican airport level, but GAP would continue paying taxes as a regular company. He said management does not expect a permanent change in GAP’s effective tax rate, though there could be a temporary decrease during 2026 and 2027 due to the tax shield of interest.

Villarreal also said GAP expects to make two dividend distributions this year, with one potentially in the current quarter and another in the final quarter. The shareholders meeting approved a distribution of MXN 0.2080 per ordinary share, he said.

Asked whether GAP would offer broad concessions or discounts to airlines to support traffic, Revuelta said the company is not considering general discounts. He said GAP may provide specific support on a case-by-case basis when routes face low load factors or when airport connectivity is at risk.

About Grupo Aeroportuario Del Pacifico NYSE: PACGrupo Aeroportuario del Pacífico, SAB. de C.V. NYSE: PAC, commonly known as GAP, is a leading airport operator in Mexico. Established in 1998 as part of the federal government’s airport privatization program, GAP holds long‐term concession agreements—typically 50 years—to manage, develop and operate airports under a public–private partnership model. Through these concessions, the company undertakes terminal expansions, runway maintenance and the modernization of navigation and security systems.

The company’s portfolio comprises 12 airports across Mexico’s Pacific and western regions, including major hubs such as Guadalajara, Tijuana, Los Cabos, Puerto Vallarta and Mazatlán, as well as regional facilities in Aguascalientes, Morelia and La Paz.

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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The New Year's eve ball ascends on the day of SpaceX's initial public offering (IPO) in New York City, U.S., June 12, 2026. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab

CompaniesJuly 15 (Reuters) - SpaceX shares dropped below their initial public offering price on Wednesday, a first for the company, just over a month after a frenzy over the rockets-to-AI firm powered the biggest ​IPO ever and made Elon Musk the world's first trillionaire.

Its shares (SPCX.O), opens new tab slid 2.7% to $132.5, falling ‌below the $135 apiece IPO price and well below the all-time high of $225.64, which propelled the company's market valuation briefly above those of Silicon Valley giants Microsoft (MSFT.O), opens new tab and Amazon (AMZN.O), opens new tab.

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Many contended the stock's rally was likely vulnerable to reversals, given ​SpaceX's $4.9 billion in net losses last year and the uncertainty over the firm's prospects as ​well as the stock valuations that might hold across the market at a ⁠time when inflation has been rising, putting the Fed's policymakers on notice.

The decline leaves investors who ​bought into the company at the IPO price sitting on paper losses for the first time, potentially ​testing confidence in the stock.

It also offers a reminder that Wall Street enthusiasm can cool quickly, even for a company with the size and scale of SpaceX, which raised around $85.7 billion and fetched a valuation of around $2.1 trillion at ​the end of its first trading day.

It is not uncommon for a stock to fall below ​the IPO price, especially during periods of broader market stress.

Wall Street's main indexes have been under pressure in recent ‌weeks due ⁠to uncertainty around the U.S. Federal Reserve's interest rate path and concerns about the durability of the rally powered by AI winners such as chipmakers.

Still, the drop may bolster critics who had argued that SpaceX's valuation was stretched, as the company was unprofitable and many of its ambitious bets were still untested.

Investors ​would find better entry points ​after the first ⁠wave of excitement had faded, some analysts had warned before the IPO.

The reversal also underscores the risks of chasing momentum, and the limits of a ​valuation driven more by narrative than near-term fundamentals.

The stock's addition to prestigious indexes, ​such as ⁠the tech-heavy Nasdaq 100 (.NDX), opens new tab, did little to reignite the buying. SpaceX's shares have dropped nearly 13% since they were included in the Nasdaq 100.

The focus now shifts to the company's first results after listing. SpaceX has not ⁠yet disclosed ​when it plans to do it, but has said they ​will be released only through its website and its social media account on X, and not through wire distribution services.

Reporting by ​Niket Nishant, Shashwat Chauhan and Johann M Cherian in Bengaluru; Editing by Sriraj Kalluvila and Pooja Desai

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

Key Takeaways Tesla delivered 480,126 vehicles in Q2, up 25% year over year and above our model estimate.Energy storage deployments hit 13.5 GWh, up 40% year over year, led by Megapack and Powerwall demand.Tesla's high valuation, $25B capex plan and uncertain AI and robotaxi timelines weigh on its appeal. Tesla (TSLA - Free Report) is slated to release second-quarter 2026 results on July 22, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 47 cents per share and $24.7 billion, respectively.

The earnings estimate for the to-be-reported quarter has been revised upward by 2 cents over the past 30 days. The bottom-line projection indicates year-over-year growth of 17.5%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 10%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for TSLA’s revenues is pegged at $102 billion, implying a rise of 7.6% year over year. The consensus mark for 2026 EPS is pegged at $2.11, suggesting an uptick of around 27% on a year-over-year basis.

In the trailing four quarters, this electric vehicle (EV) and technology giant topped EPS estimates on three occasions and missed once, with the average negative earnings surprise being 5.48%.

Image Source: Zacks Investment Research

Earnings Whispers for TSLA

Our proprietary model predicts an earnings beat for Tesla this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TSLA has an Earnings ESP of +16.52% and a Zacks Rank #3.

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

Factors Shaping Tesla’s Q2 ResultsIn the second quarter, Tesla delivered 480,126 vehicles (including 467,762 Model 3/Y and 12,364 other models), beating our model estimate of 400,133 units. Deliveries increased 34% sequentially and 25% on a year-over-year basis. It was Tesla’s strongest quarter for EV sales since the third quarter of 2025. Back then, sales got a similar lift when U.S. buyers rushed to purchase before federal EV tax credits expired, prompting Tesla and other automakers to see a temporary surge in demand.

Second-quarter deliveries were largely driven by high gas prices amid the Middle East conflict, which likely pushed consumers toward EVs. Demand trends strengthened across key international markets like Europe and China.Although Tesla doesn’t break down sales by region, Europe was a key catalyst, where sales momentum has been robust in recent months. In China, where Tesla commands a huge presence, retail deliveries rebounded strongly in May, snapping a two-month run of year-over-year sales declines. Despite softer U.S. demand, robust international performance helped offset the weakness.

Tesla’s smaller pure-play EV peers—Rivian Automotive (RIVN - Free Report) and Lucid Group (LCID - Free Report) —came up with contrasting second-quarter delivery reports. While Rivian delivered 12,194 vehicles, topping estimates and its own prior guidance, Lucid fell short of expectations, delivering just 3,953 vehicles. 

Coming back to Tesla, we expect the company’s automotive revenues and gross margins to improve year over year on the back of strong deliveries. We forecast second-quarter total automotive revenues and gross margins at $17 billion (up over 2% year over year) and $3.2 billion (up 11% year over year).

The company’s energy business revenues are also expected to increase as Tesla deployed 13.5 GWh of energy storage in the second quarter, reflecting an uptick of 53% and 40% on a sequential and year-over-year basis, respectively. The number also came ahead of our model projection of 12.66 GWh. The outperformance was driven by stronger-than-expected demand for Megapack and Powerwall.

Tesla Price Performance & ValuationOver the past year, shares of Tesla have risen 23%, outperforming the industry.

Image Source: Zacks Investment Research

Tesla stock is quite overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 13.68, way higher than the industry as well as its own 5-year average.

Image Source: Zacks Investment Research

How to Play TSLA Stock NowYes, Tesla's delivery trends are improving, but deliveries are no longer the company's central growth story. Its energy storage business is also performing well, though it still accounts for a relatively small portion of overall revenues.

Tesla has aggressively pivoted toward autonomous vehicles (AVs) and artificial intelligence (AI). The problem is these are long-cycle bets with uncertain timelines. The company operates unsupervised robotaxi service in Austin, Dallas, Houston and Miami and supervised service in the San Fransico Bay Area. Still, it has a lot of catching up to do with Alphabet’s (GOOGL - Free Report) Waymo, which is the frontrunner in this space. CEO Elon Musk has already pushed back the robotaxi timeline. The story with Optimus is also not much different. On the first-quarter earnings call, Musk admitted production will be “quite slow” and said it’s “literally impossible to predict” output this year. 

On top of that, Tesla lifted its 2026 capital expenditure forecast from $20 billion to $25 billion. Management has warned that free cash flow could turn negative as it ramps up spending on AI and autonomous-driving initiatives.

Tesla does possess a powerful brand, industry-leading technology capabilities, and multiple long-term growth platforms. Tesla’s next chapter could be transformational, but it is capital-intensive, high-risk, and likely years away from delivering material financial returns. Until then, execution and valuation risks remain concerning. As such, from a broader perspective, this may not be the right entry point for new investors, even if Tesla beats second-quarter earnings expectations.

Amazon (AMZN +3.44%) is a company that's done a terrific job of expanding its business over the years. Not only is it an e-commerce giant, but many companies rely on its cloud business, Amazon Web Services (AWS), and that has become a major source of profit for the entire company. Amazon has also gotten involved in robotaxis, grocery stores, and healthcare.

One of its most promising new opportunities, however, could involve selling artificial intelligence (AI) chips.

Image source: Getty Images.

Why selling chips could be a huge part of Amazon's business in the future Amazon's top AI chip, Trainium, was built with a heavy focus on efficiency and scale. It's effectively built by a company that needs to scale AI efficiently, making it ideal for tech companies looking to reduce costs and improve the profitability of their AI ventures.

CEO Andy Jassy stated in the company's letter to shareholders that "there's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future." Jassy estimates that the annual run rate for a theoretical chip business could be around $50 billion. That total includes the revenue that the stand-alone business would generate from AWS, but it's nonetheless a positive sign of the type of growth that Amazon is seeing from this area of its operations.

Last year, Amazon reported $717 billion in revenue. If the company generated an extra $50 billion in cash, that would represent growth of 7%. But with a large chunk of that likely related to AWS, the true growth rate would likely be far more modest. However, if the company prioritized that area of its operations, it could become a major growth catalyst in the future.

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Amazon's stock looks undervalued It's a bit surprising that Amazon's stock isn't doing much better given the opportunities in AI. In just the past 12 months, it's risen by around 10% -- far below the S&P 500's 20% gain over that stretch. It's lagged the market, despite the business continuing to grow and expand.

For investors, now may be an ideal time to buy the stock, as it's trading at a price-to-earnings multiple of around 30, which is extremely low when compared to the average stock in the Technology Select Sector SDPR ETF, which trades at a multiple of 38.

Amazon is a beast in the tech sector, and it can be a fantastic stock to just buy and hold for the long term, as it continually reminds investors that it isn't running out of growth opportunities anytime soon.

Microsoft MSFT stock rose about 3% on Wednesday as Wall Street analysts reaffirmed their bullish outlook on the software giant despite trimming some price targets ahead of the company's fiscal fourth-quarter earnings report later this month.

Shares gained after Evercore ISI raised its price target on Microsoft to $525 from $510 while maintaining an Outperform rating.

The brokerage expects Microsoft to deliver double-digit revenue and operating income growth in fiscal 2027, supported by continued investment in artificial intelligence and improving momentum across its cloud business.

The firm said Microsoft shares have remained range-bound as investors wait for greater clarity on Azure cloud revenue acceleration and the monetization of Microsoft Copilot.

Evercore ISI expects Azure growth to strengthen in the second half of the year while Copilot adoption continues to improve.

The brokerage also forecasts fiscal 2027 cash capital expenditures of about $210 billion, above the Street estimate of roughly $180 billion.

According to Evercore ISI, capital expenditure growth could begin to normalize in 2027 after the current investment cycle while providing a catalyst for improving investor sentiment.

Analysts remain optimistic despite price target cutsWhile Evercore ISI became more optimistic, several other brokerages reduced their price targets ahead of Microsoft's earnings release without changing their positive recommendations.

Citi Research lowered its target price to $570 from $620 but maintained a Buy rating.

The revised target still represents substantial upside from Microsoft's recent trading levels.

"We remain positive on MSFT," Citi analyst Tyler Radke wrote Wednesday, adding that the company is "increasingly strategically positioned in an era of optimizing token spend and AI efficiency."

The brokerage expects Microsoft to report a strong fiscal fourth quarter but said investors should prepare for higher artificial intelligence spending in fiscal 2027.

"We think MSFT will be able to demonstrate stronger returns with accelerating growth rates in flagship franchises (Azure + M365 CoPilot) as we move into FY27, which would ultimately drive accelerating overall revenue/EPS growth through FY30," Radke wrote.

Wells Fargo also maintained a constructive stance despite highlighting mixed expectations for the fourth quarter.

The firm pointed to concerns surrounding Microsoft's cloud market share and capital spending but said stronger Azure growth, AI adoption and operating expense discipline could support a stronger fiscal 2027 outlook.

Mizuho also lowered its price target, cutting it to $490 from $550 as part of a broader revision across software stocks.

However, the brokerage said its channel checks remained positive overall, with public cloud demand staying strong and AI adoption remaining robust.

AI investment and earnings remain key focusMicrosoft's continued investment in artificial intelligence remains a central theme for investors ahead of earnings.

Evercore ISI said Azure acceleration, Copilot momentum and moderating capital expenditure growth could help improve sentiment during the second half of calendar 2026.

The company is scheduled to report fiscal fourth-quarter earnings on July 29.

Consensus estimates compiled by Fiscal AI project earnings of $4.24 per share on revenue of $86.66 billion.

Analyst sentiment remains overwhelmingly positive ahead of the results.

According to Koyfin data, 53 of the 56 analysts covering Microsoft rate the stock as a Buy or stronger recommendation, while the remaining analysts maintain Hold ratings.

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Two Wall Street firms trimmed their price targets on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) ahead of the software giant’s fiscal Q4 report, but neither pulled its bullish rating. Citi lowered its target to $570 from $620 while keeping a Buy rating, and Mizuho analyst Gregg Moskowitz cut his target to $490 from $515 while maintaining an Outperform rating. The message to long-term investors: Wall Street is getting more cautious on price and capex digestion without losing conviction on the underlying business.

Ticker Company Firm Action Old Rating New Rating Old Target New Target MSFT Microsoft Citi Price target cut Buy Buy $620 $570 MSFT Microsoft Mizuho Price target cut Outperform Outperform $515 $490 The Analyst’s Case Citi stays positive after constructive channel checks on Copilot and views Microsoft as increasingly well positioned for optimizing token spend and AI efficiency. The firm expects strong Q4 results but flags that investors will need to digest higher capex spending in Q1.

Mizuho’s cut came as part of a broader large-cap software Q4 earnings preview. Moskowitz described channel checks as good, public cloud data points as strong, and AI adoption as robust. He noted that SaaS remains resilient, but multiples are pressured by investor concerns about AI-led disruption. The common thread is capex intensity, the same concern that has weighed on the Microsoft stock story for months.

Company Snapshot Microsoft’s most recent quarter reinforced the bull case. Revenue reached $82.89 billion, up 18.3% year over year, with EPS of $4.27 beating the consensus of $4.09. Azure and other cloud services grew 40%, and CEO Satya Nadella noted the AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year. Commercial remaining performance obligations sit at $627 billion, up 99%.

The catch is spending. Capital expenditures hit $30.88 billion in Q3, an 84.4% year-over-year increase, with Forbes estimating roughly $190 billion in capex for 2026.

Why the Move Matters Now Microsoft shares last traded at $397.05, with the Microsoft stock down 20.05% year to date and 22.86% over the past year. Microsoft reports fiscal Q4 2026 results on July 29, after market close. With both firms flagging capex digestion as the near-term overhang, guidance commentary matters as much as the headline numbers. Analyst consensus still points to 54 Buy ratings, 3 Hold, and 0 Sell (a report like 7 Stocks Powering the AI Boom puts this AI infrastructure debate in wider context).

What It Means for Your Portfolio The analyst price target cuts are a recalibration, not a rejection. Both firms concede that Copilot uptake, Azure momentum, and enterprise AI adoption are tracking well. Their caution centers on when the return on $30.88 billion quarterly capex shows up in reported earnings. For retirement-focused investors, that translates to a familiar tradeoff: durable franchise, sizable long-term option value in AI, and a stock that may trade choppily until capex intensity peaks. The July 29 fiscal Q4 report is the next stress test for the thesis.

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Alibaba's US-listed shares rose more than 6% on Wednesday after the Chinese technology giant confirmed that its Qwen artificial intelligence model will power Apple Intelligence features for users in China.

This marks a major milestone in Apple's long-delayed AI rollout in the country.

Apple shares also gained about 1.8%, while Baidu's US-listed stock climbed roughly 2.8% after the company separately confirmed it was also collaborating with Apple on AI features for Chinese iPhone users.

The announcement came after China's cyberspace regulator approved Apple Intelligence for use on iPhones in China, removing one of the biggest regulatory hurdles that had delayed the launch since Apple first unveiled the AI platform in 2024.

China requires all large language models and generative AI services to obtain regulatory approval before they can be offered to the public.

Apple Intelligence and Samsung's Galaxy AI were the only foreign AI services approved in the latest batch.

Domestic smartphone makers Huawei, Oppo, Vivo, Xiaomi and ZTE also received approvals, with ByteDance serving as ZTE's AI partner.

The approval follows months of discussions between Apple and Chinese authorities as geopolitical tensions between Washington and Beijing have intensified over artificial intelligence and advanced technology.

An Alibaba spokesperson confirmed to CNBC that the company's AI model would become part of Apple's ecosystem in China.

"Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and visionOS for users in China," the spokesperson said.

According to Bloomberg, Qwen will enable capabilities including text generation, image generation, and image understanding across Apple's devices without requiring users to switch between separate applications.

"The Apple-Qwen integration gives users the ability to access the model's capabilities, like text and image understanding and generation, without needing to jump between tools," the Alibaba spokesperson added.

Alongside Alibaba, Apple is also collaborating with Baidu to develop AI features tailored for Chinese users.

A Baidu representative told the South China Morning Post that the company was working with Apple on Apple Intelligence features for the Chinese market.

Reuters also reported that Baidu would contribute to Apple's localized AI services.

The dual partnerships underscore Apple's strategy of working with domestic AI leaders to comply with China's regulatory framework while expanding Apple Intelligence outside Western markets.

The announcement comes amid growing competition between Chinese and US artificial intelligence companies.

Earlier this month, Alibaba prohibited employees from using Anthropic's AI models, while US lawmakers have been exploring ways to curb adoption of Chinese AI systems by American companies.

Separately, reports indicated that Meta had been forced to unwind its planned $2 billion acquisition of Chinese AI startup Manus following intervention by Beijing.

The development also coincides with Apple's efforts to improve on-device AI capabilities.

CNBC reported on Tuesday that Apple is in discussions with Silicon Valley startup PrismML, which claims it can compress advanced AI models sufficiently to run directly on iPhones.

PrismML, a Caltech spinout backed by Khosla Ventures, recently released compressed versions of Alibaba's open-source Qwen model, reducing its size from roughly 54 GB to less than 4 GB, allowing the full 27-billion-parameter model to operate on an iPhone 15 or newer device.

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Netflix co-CEO Ted Sarandos and YouTube CEO Neal Mohan. Noam Galai/JP Yim/Getty Images. Can Netflix become YouTube before YouTube can become Netflix?

The two apps are starting to look a lot more alike as Netflix chases creator content, podcasts, and short-form video, and YouTube pitches itself as a destination for TV advertisers and Emmy-worthy shows. They are also both diving into live sports.

The top streamers are all trying to create a "super app," said Scott Purdy, a media sector leader at the consulting firm KPMG US.

"They're just trying to pick off the best things, whether that's creator-driven stuff, whether that's games, whether that's better customization around advertising, to create an ecosystem that you never have to leave," he said.

The pair is even dueling over awards shows — Netflix is streaming The Actor Awards (formerly the Screen Actors Guild Awards), while YouTube is set to host the Oscars beginning in 2029.

The battle for attention doesn't come cheap.

Netflix and YouTube are spending billions of dollars a year on content, either through production and licensing deals or advertising-revenue sharing, as they duke it out for the top spot in Nielsen's monthly ranking of US TV viewership.

As content becomes less differentiated, the companies that do a better job at customizing the viewing experience will have an edge, said Frank Albarella, a US media and telecommunications leader at KPMG US.

"What do you see when you fire up your homepage?" he said. "Are they doing a good job at pointing it to certain things? That's always important."

Price will matter too, he added.

Right now, that's a key difference between paid Netflix and free YouTube. (Though YouTube has a paid, ad-free version, and there are periodic rumblings in the analyst community that Netflix should launch a free tier.) There's also the fact that Netflix pays money up front for content, while YouTube splits ad revenue with creators.

These differences have led Netflix to own higher-budget, scripted TV, while YouTube dominates influencer content and the long tail.

Both have been signaling their desire to make inroads into each other's traditional turf, however — though the extent to which they'll be successful remains to be seen.

The streaming wars are now a head-to-head fightA decade ago, few would have guessed that Netflix and YouTube would be the final showdown in the streaming wars. Netflix's co-CEO Ted Sarandos said in 2013 that the company's goal was "to become HBO faster than HBO can become us."

Back then, Netflix didn't have an advertising business. Today, it knows its biggest task is to drive watch time. The company's North Star has shifted to "engagement," which it has called the "best proxy for customer satisfaction."

Sarandos told investors last year that the streamer is the best place for premium content "as defined by fans," not critics. It isn't HBO tastemakers that are driving the bulk of TV viewing. Many spend their time in social feeds, watching influencers bake bread or do trick shots on basketball courts. Just under half of Gen Z and millennial viewers consider watching social media videos to be the same as watching TV, according to a Deloitte report from last year.

To win, Netflix is looking to offer a mix of cable TV, TikTok, and YouTube-style fare. It's not alone. Other streamers seem to be realizing they need to offer more in their apps to compete. Disney and Paramount are exploring short-form video feeds and free tiers to expand their audiences and drive up engagement.

"These streaming platforms and the social platforms are moving towards the same center of gravity," Albarella said. "We call it a battle for audience attention or engagement, and almost like a new category called creator-driven television."

This month, Netflix said it's adding three to 20-minute videos from the likes of Bon Appétit, Variety, and Cosmopolitan — the type of short content that people binge-watch on YouTube. It's adding new videos from YouTube creators The Stokes Twins, Rhett and Link, the food influencer Meredith Hayden, and other social stars like Salish and Jordan Matter.

YouTube, meanwhile, is now letting creators organize their videos in TV-style series, offering seasons and episodes for viewers to burn through. The company said more users watch YouTube on television than on computers or phones, and it's pitching shows from top creators like Kareem Rahma to advertisers as TV buys.

Ultimately, all the media and social platforms have the same goal: to keep us watching.

"There's only so many hours in a day, and everyone is competing for amounts of attention," Purdy said. "They're all trying to figure out how to monetize that attention effectively."

The biggest question mark is the future of prestige scripted content. YouTube has traditionally struggled in this area, but if younger generations spend less time watching it, that might cease to be such an edge for Netflix.

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This Dividend ETF Choice Could Shape Your Income Strategy Through 2026Johnson & Johnson NYSE: JNJ raised its full-year 2026 outlook after reporting second-quarter sales growth that management said was supported by strength in Innovative Medicine, new product launches and a broad portfolio that helped offset continued pressure from STELARA biosimilar competition.

Chairman and Chief Executive Officer Joaquin Duato said the company delivered a “Q2 beat on the top and bottom line and raised guidance,” describing 2026 as a year of accelerated growth for Johnson & Johnson. The company reported worldwide quarterly sales of $25.3 billion, up 5.6% operationally. Excluding STELARA, Duato said Johnson & Johnson grew double digits in the quarter.

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3 Stocks Doing the Heavy Lifting in Healthcare’s ReboundRyan Kurz, Vice President of Investor Relations, said U.S. sales rose 7.3%, while sales outside the U.S. increased 3.4%. Net earnings were $5.5 billion, and diluted earnings per share were $2.27, compared with $2.29 a year earlier. Adjusted net earnings were $7.1 billion, with adjusted diluted EPS of $2.90, up 4.7% from the second quarter of 2025.

Innovative Medicine Leads Growth Innovative Medicine sales totaled $16.4 billion, up 6.8% operationally, despite what Kurz described as an approximately 760-basis-point headwind from STELARA. The division posted 8.9% growth in the U.S. and 3.6% growth outside the U.S.

3 Dividend Kings That Earn Their Crown Every QuarterDuato said the Innovative Medicine business had eight brands growing double digits. In oncology, DARZALEX remained the company’s largest product, with quarterly sales of more than $4 billion and growth of 17.6%, driven by share gains and market growth in multiple myeloma. CARVYKTI grew 47.7%, TECVAYLI grew 56.1% and TALVEY grew 62.6%.

In lung cancer, RYBREVANT plus LAZCLUZE grew 61.6%, supported by launch uptake across regions and share gains in first- and second-line settings. ERLEADA grew 7.6% in prostate cancer, with share gains and market growth partly offset by unfavorable patient mix and inventory dynamics.

In immunology, TREMFYA delivered 71% growth. Duato said it remains the fastest-growing advanced therapy in both Crohn’s disease and ulcerative colitis. STELARA declined 55.7%, reflecting biosimilar competition, adoption of newer treatment classes and unfavorable patient mix.

Jennifer Taubert, Executive Vice President and Worldwide Chairman, Innovative Medicine, said during the question-and-answer session that TREMFYA reached its first $2 billion quarter. She said the product is leading new patient starts, or induction share, among IL-23 therapies in both ulcerative colitis and Crohn’s disease.

Launches Gain Traction Management highlighted early momentum for ICOTYDE, INLEXZO and other newer products. Duato said more than 10,000 patients had initiated therapy on ICOTYDE since launch, citing demand for a once-daily oral psoriasis treatment. In the Q&A, Taubert updated that figure to 11,000 patients, with more than 18,000 prescriptions written and 6,000 unique prescribers. She said commercial coverage had surpassed 50% within 90 days, ahead of company projections.

Taubert said ICOTYDE is being positioned as a first-choice systemic treatment for psoriasis patients moving beyond topical therapy, while TREMFYA is being positioned as a first-choice biologic, particularly for patients with or at risk of psoriatic arthritis. John Reed, Executive Vice President, Innovative Medicine Research and Development, said pivotal data for ICOTYDE in psoriatic arthritis are expected later this year, with phase 3 studies in ulcerative colitis and Crohn’s disease underway.

For INLEXZO in bladder cancer, Duato said nearly one in three eligible patients started on an INLEXZO regimen during the second quarter, and new patient insertions grew about 75% from the prior quarter. Taubert said the product is outperforming recent competitive launches in the U.S. and more than doubled sales from the first quarter, though the company is not yet reporting quarterly sales for the product.

MedTech Growth Slows in Cardiovascular MedTech sales were $8.9 billion, up 3.6% operationally, with growth across cardiovascular, surgery and vision. Kurz said cardiovascular grew 3.1%, below recent trends, due mainly to headwinds in electrophysiology and Abiomed.

Electrophysiology grew 3.1%, supported by procedure growth, commercial execution and new products, but partially offset by competitive pressure in pulsed field ablation and an estimated 400-basis-point negative impact from China inventory. Duato said VARIPULSE, the company’s pulsed field ablation platform for atrial fibrillation, has treated more than 85,000 patients worldwide.

Abiomed declined 2% as U.S. procedure pressures weighed on heart recovery. Tim Schmid, Executive Vice President and Worldwide Chairman, MedTech, said in the Q&A that the slowdown followed a neutral clinical trial in the U.K. focused on high-risk PCI, which led physicians to become more selective. Schmid characterized the issue as behavioral rather than structural and said the company is engaging with physicians while awaiting PROTECT IV data expected in 2027.

Surgery grew 2.3%, vision grew 5.6% and orthopedics grew 4.2%. Schmid said three of the four MedTech businesses — surgery, vision and orthopedics — accelerated in the quarter and performed above expectations. He also said the company is not seeing evidence of a broad-based slowdown in procedure volumes across its portfolio.

Guidance Raised for 2026 Chief Financial Officer Joe Wolk said Johnson & Johnson ended the quarter with about $21 billion in cash and marketable securities and about $49 billion of debt, resulting in a net debt position of about $28 billion. Year-to-date free cash flow totaled approximately $8.7 billion, and Wolk said the company remains on track for full-year free cash flow approaching $21 billion.

Wolk raised full-year operational sales growth guidance by $400 million, now expecting growth of 6.5% to 7.1%, with a midpoint of $100.6 billion. Including currency, reported sales growth is expected to be 7.0% to 7.6%, with a midpoint of $101.1 billion. The company’s 2026 calendar includes a 53rd week, which Wolk said provides an approximately 100-basis-point benefit.

Adjusted operational EPS is now expected to range from $11.50 to $11.65, an $0.18 increase at the midpoint. Reported EPS is projected at $11.60 to $11.75. Wolk said the updated outlook reflects second-quarter performance, uptake of new launches, operating efficiencies and anticipated reduction and recoupment of certain tariff-related costs.

Wolk also said the company’s outlook does not include the impact of pending acquisitions such as Firefly Bio, which Johnson & Johnson expects to close in the third quarter. Duato said the planned acquisition would add another antibody platform and strengthen the company’s next-generation oncology pipeline.

Pipeline and Portfolio Updates Management pointed to several second-half catalysts, including potential FDA approval of IMAAVY for warm autoimmune hemolytic anemia and data readouts for TECVAYLI with TALVEY, pasritamig, J&J 6143, INLEXZO, ICOTYDE and CAPLYTA. In MedTech, expected catalysts include launches tied to electrophysiology, Shockwave catheters, the OTTAVA robotic surgical system, ETHICON 4000 and vision products.

Wolk said the company continues to evaluate separation options for DePuy Synthes and remains on track for a mid-2027 separation. Duato closed the call by saying Johnson & Johnson’s growth momentum is expected to carry into the second half of 2026 and 2027, with the company maintaining its ambition for double-digit growth by the end of the decade.

About Johnson & Johnson NYSE: JNJJohnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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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Key Takeaways HPE is benefiting from AI infrastructure demand and triple-digit server order growth.HPE entered Q3 with a $5.9 billion AI Systems backlog led by enterprise and sovereign customers.HPE is strengthening AI infrastructure with Juniper and record campus networking demand. Hewlett Packard Enterprise (HPE - Free Report) is benefiting from the modernization of traditional IT infrastructure and huge capex investment in artificial intelligence. HPE’s foray beyond traditional server architecture to accommodate compute, networking, storage, security, private cloud, virtualization, software for AI data centers and AI fabs is enabling it to monetize at a rapid pace.

Simultaneously, the demand for traditional servers, led by the end of the server technology cycle, has emerged as a major growth driver, with orders increasing by triple digits year over year. Enterprises are replacing aging infrastructure while also investing in servers for AI inferencing. These two tailwinds caused a multiplier effect, driving the second quarter of fiscal 2026 revenues to reach $10.7 billion.

Looking ahead, as AI moves into production, millions of enterprises will need infrastructure to run inference close to their proprietary data and applications. HPE is also benefiting directly from AI systems demand, entering the third quarter with $5.9 billion in AI Systems backlog, primarily from enterprise and sovereign customers. Juniper acquisition has also strengthened HPE in campus networking, data-center switching, routing and security.

HPE is uniquely positioned as it is one of the few companies that provide networking solutions as part of a wider AI infrastructure support. HPE’s self-driving networking capabilities, powered by agentic AI, further differentiate the portfolio.

Furthermore, HPE’s Campus and Branch orders reached record levels, Wi-Fi 7 sales increased more than sevenfold, data-center switching orders rose nearly 20%, and routing orders increased nearly 30% on a normalized basis in the second quarter of fiscal 2026. HPE is also benefiting from disruption in virtualization, with VM Essentials customer count increasing 43% during the first half of fiscal 2026.

How Competitors Fare Against HPE StockHPE competes with Super Micro Computer (SMCI - Free Report) and Dell Technologies (DELL - Free Report) in the AI infrastructure market. However, HPE’s ability to package compute, storage, networking and services into pre-configured solutions can reduce deployment complexity for enterprises and sovereign customers while giving it an edge over its competitors.

Super Micro Computer is on track to scale rack production capacity to more than 6,000 AI racks per month by the end of fiscal 2026, including 3,000 direct liquid cooling racks monthly.  SMCI is already shipping 150kW AI racks in volume and preparing 250kW and 500kW rack solutions to support future high-density AI training and inference workloads. Dell Technologies is a major supplier of servers and storage systems, with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts.

HPE’s Price Performance, Valuation and EstimatesHPE has gained 106.4% in the year-to-date period. However, the company has underperformed the Zacks Computer - Integrated Systems industry, which has returned 115.4% in the same time frame.

HPE YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, HPE trades at a forward price-to-sales ratio of 1.35, below the industry’s 6.08. The discounted valuation is also reflected by the Zacks Value Score of A.

HPE Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HPE’s fiscal 2026 margin indicates year-over-year growth rate of 75.8%. Estimates have remained unchanged for the past 30 days.

Image Source: Zacks Investment Research

HPE currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways TRV is expected to benefit from pricing, renewal strength and premium growth across its business segments. TRV's investment income is projected to rise on higher fixed-maturity investments and long-term yields. Severe U.S. storms may pressure the combined ratio despite prudent underwriting. The Travelers Companies, Inc. (TRV - Free Report) is expected to register a decline in its bottom line but an improvement in its top line when it reports second-quarter 2026 results on July 17, before the opening bell.

The Zacks Consensus Estimate for TRV’s second-quarter revenues is pegged at $12.28 billion, indicating 1.3% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $5.14 per share. The Zacks Consensus Estimate for TRV’s second-quarter earnings has moved north 5.5% in the past 30 days. The estimate suggests a year-over-year decrease of 21%.

What the Zacks Model Unveils for TRVOur proven model predicts an earnings beat for Travelers this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

TRV’s Earnings ESP: Travelers has an Earnings ESP of +6.09%. This is because the Most Accurate Estimate of $5.45 is pegged higher than the Zacks Consensus Estimate of $5.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TRV’s Zacks Rank: The stock carries a Zacks Rank #3 at present.

Factors to ConsiderBetter performances across all three segments are likely to aid Travelers’ second-quarter results.

Premiums are likely to have benefited from better pricing, a solid renewal rate change, strong retention and exposure growth. The Zacks Consensus Estimate is currently pegged at $10.9 billion, indicating an increase of 0.3% from the year-ago reported number.

A higher average level of fixed maturity investments and higher long-term average yields are likely to aid investment results in the to-be-reported quarter. Management estimates fixed income NII, including earnings from short-term securities, of approximately $810 million after tax in the second quarter. The Zacks Consensus Estimate is currently pegged at $1 billion, implying an increase of 9.5% from the year-ago reported number.

The Personal Insurance segment is likely to have benefited from strong retention rates, increased new business premiums and positive renewal premium change, particularly in the Homeowners business. The Zacks Consensus Estimate is currently pegged at $4.1 billion, indicating a decrease of 4% from the year-ago reported number.

The Bond & Specialty Insurance segment is likely to have benefited from strong retention rates, positive renewal premium changes and increased new business premiums, as well as increases in the United Kingdom and broader Europe. The Zacks Consensus Estimate is currently pegged at $1 billion, indicating an increase of 5.9% from the year-ago reported number.

Strong retention rates, positive renewal premium changes and increased new business premiums are likely to have aided premiums at Business Insurance. The Zacks Consensus Estimate is currently pegged at $5.7 billion, indicating an increase of 2.3% from the year-ago reported number.

An increase in net written premiums, coupled with higher net investment income and other revenues, is likely to have aided the top line in the to-be-reported quarter.

Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is expected to have led to an improvement in the combined ratio. However, losses from severe convective storms in the United States are likely to have affected the insurer. The Zacks Consensus Estimate is currently pegged at 96, indicating a deterioration of 600 basis points from the year-ago reported number.

However, expenses are expected to have risen due to higher claims and claim adjustment expenses, amortization of deferred acquisition costs, general and administrative expenses, and interest expenses.

Continued share buybacks are anticipated to have provided an additional boost to the bottom line.

Other Stocks to ConsiderHere are three other P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +8.84% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CINF’s earnings beat estimates in each of the last four reported quarters.

Chubb Limited (CB - Free Report) has an Earnings ESP of +4.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $6.60, indicating a year-over-year increase of 7.4%.

CB’s earnings beat estimates in each of the last four reported quarters.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +23.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92, indicating a year-over-year decrease of 17.1%.

ALL’s earnings beat estimates in each of the last four reported quarters.

FG: TSX-V

, /PRNewswire/ - Falcon Gold Corp. (TSXV: FG) (FSE: 3FA) (OTC Pink: FGLDF) ("Falcon" or the "Company") is pleased to announce that it has commenced the drill tender process for its fully permitted Central Canada Gold Project located near Atikokan, Ontario.

"Central Canada continues to emerge as one of the most exciting exploration opportunities in Falcon's portfolio," said Karim Rayani, Chief Executive Officer of Falcon Gold Corp. "With a fully permitted drill program, encouraging results from our previous drilling campaigns and more than a century of historic exploration to build upon, we believe we are well positioned to advance this project toward its next significant discovery."

The Company recently received approval for a diamond drilling program consisting of up to 20 drill holes totaling approximately 2,500 metres. Falcon has invited a number of experienced Canadian diamond drilling contractors to submit tenders for the upcoming exploration program, with contractor selection expected to be completed in the coming weeks.

The planned drill program is designed to follow up on Falcon's previously identified high-grade gold mineralization while testing additional priority targets generated through the integration of historical exploration, diamond drilling, geological mapping, geophysics and structural interpretation.

Exploration and development at the Central Canada Gold Project dates back to the early 1900s, when the property was the site of shaft sinking, underground development and limited historic gold production. During the 1930s, Central Canada Mines Ltd. further advanced the property through underground development and exploration, establishing the project as one of the historic gold occurrences within the Atikokan Gold Camp.

To date, Falcon has successfully completed two phases of diamond drilling at the Central Canada Gold Project. These programs confirmed the presence of high-grade, structurally controlled gold mineralization, including highlights of 10.17 g/t Au over 3.0 metres, including 18.6 g/t Au over 1.0 metre with visible gold, and 2.8 g/t Au over 7.5 metres. These results have significantly enhanced the Company's geological understanding of the project and refined several priority drill targets.

The upcoming drill program will focus on expanding and testing the historic Central Canada Mine Trend (J.J. Walshe Mine Trend) together with several additional prospective gold-bearing structures identified across the property, including the Sugar Shear, Monte Zone, No. 2 Vein, Honey Zone and Hoist Zone. Collectively, these targets represent a broad, district-scale mineralized system that remains only partially evaluated by modern exploration despite more than a century of intermittent exploration.

In addition to advancing the Central Canada Gold Project, Falcon continues to strengthen its strategic position within the Atikokan-Hammond Reef Gold District through the recent acquisition of the West Hammond Contact Property, providing shareholders with exposure to a growing portfolio of highly prospective gold projects in one of Ontario's premier exploration districts.

Following completion of the tender process, the Company expects to award a drilling contract and announce the commencement of the program. Mobilization will be subject to financing, contractor availability and customary operational scheduling.

The Company will continue to provide updates as exploration activities progress.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Mike Kilbourne, P.Geo., a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Kilbourne is an independent consulting geologist and is at arms length to the Company. 

ON BEHALF OF THE BOARD OF DIRECTORS
Karim Rayani
Chief Executive Officer
Falcon Gold Corp.
[email protected]
+1 604 716 0551

About Falcon Gold Corp.

Falcon Gold Corp. is a Canadian mineral exploration company focused on the acquisition, exploration, and advancement of precious and battery metals opportunities across the Americas, with a portfolio spanning established mining camps and emerging exploration districts. Its flagship asset, the Central Canada Gold Project, is located approximately 20 kilometres southeast of Agnico Eagle's Hammond Reef Gold Deposit in northwestern Ontario. The project lies within the highly prospective Quetico Fault Zone, a major regional structural corridor interpreted as a key control on gold mineralization in the district. The Hammond Reef deposit is associated with a northeast-trending structural system linked to this broader regional framework, highlighting the significance of the geological setting. The Central Canada property has a documented exploration and development history spanning more than a century. Early work between 1901 and 1907 included shallow shaft development and small-scale production from high-grade material processed through stamp milling. Between 1930 and 1935, Central Canada Mines Ltd. further advanced the project with deeper underground development, crosscutting, and the installation of a small-scale gold mill. Subsequent exploration programs have included diamond drilling campaigns that returned multiple high-grade gold intercepts, supporting the presence of significant mineralization within the system. Beyond its flagship project, Falcon Gold maintains a diversified portfolio of Canadian exploration assets. This includes a 49% interest in the Burton Gold Property in partnership with IAMGOLD near Sudbury, Ontario, exploration-stage gold targets in British Columbia through the Spitfire and Sunny Boy claims, and the Great Burnt Copper-Gold Project in central Newfoundland.

Cautionary Language and Forward-Looking Statements

This news release may contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including but not limited to statements relating to the timing and content of future work programs, including planned drilling programs, geological interpretations, receipt of property titles, and other corporate and technical matters. Forward-looking statements are based on assumptions, expectations, estimates, and projections as of the date of this news release and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied herein. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "intend," "expect," "plan," "anticipate," "believe," "estimate," "project," "potential," or "continue," or the negative of these terms, or other comparable terminology. Forward-looking statements in this news release may include, but are not limited to, statements regarding planned drilling activities on the Central Canada Gold Project, which is currently permitted for up to 20 drill holes, and the interpretation and potential extension of mineralization along structural trends within the project area. There can be no assurance that the Company's exploration programs will proceed as currently contemplated or that they will achieve their intended objectives. Forward-looking statements are inherently subject to significant business, economic, competitive, and geological uncertainties and contingencies. Actual results may differ materially from those currently anticipated. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that plans, assumptions, or expectations will prove to be accurate.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Falcon Gold Corp.

The share price of Oracle (ORCL +2.79%) has plunged more than 60% from its 52-week high, and the stock currently trades at $136. This reflects investor concerns around the heavy capital spending to support the company's data center build-out, but it's difficult to overlook the level of demand in Oracle's cloud business.

Cloud revenue growth has accelerated from 28% year over year in the August-ending fiscal first quarter to 47% growth in the fiscal fourth quarter. Demand for artificial intelligence (AI) services drove a 93% increase in the cloud infrastructure business last quarter. While there are risks, the disconnect between cloud growth and its stock price presents a compelling opportunity for investors.

Image source: The Motley Fool.

Oracle's cloud advantage Oracle's momentum reflects a key competitive advantage in the cloud market: data security. Enterprises want to use AI to boost productivity, but it's also essential that they keep their data private and secure when using AI models from OpenAI, Anthropic, and others.

Its cloud infrastructure is differentiated from other hyperscalers through its secure data-isolation architecture. This separates the cloud control computers from the customer's compute nodes. This allows an enterprise to control its data behind its own firewall, which seems to be a key selling point driving greater demand for Oracle's cloud business.

Oracle provides the data center infrastructure for AI training and inference, along with industry expertise for running enterprise software. It essentially serves as the customer's digital hub.

CEO Mike Sicilia hinted at a huge opportunity for Oracle: "We're on the front end of one of the most interesting times in the technology business." Oracle's cloud revenue trajectory in recent quarters suggests that customers are moving past the testing stage of AI and actively implementing it to run their businesses.

Today's Change

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131.51

Growth and value outweigh the risks Building data centers is capital-intensive. Oracle's capital expenditures are growing faster than the cash it is generating from operations. It has also issued more debt to fund its data center build-out. Its total debt has increased by $57 billion over the last year, while its free cash flow has tanked to negative $23.7 billion on a trailing 12-month basis.

The lower free cash flow and higher debt load have raised concerns around Oracle's financial health. However, the company's debt-to-equity ratio has declined from 5.3 to 3.9. This shows Oracle shifting from a debt-heavy business to an asset-heavy one focused on owning data center infrastructure for an AI-driven economy.

Importantly, Oracle is not spending without contracts in place. Remaining performance obligations, which are contracted revenue, ended the quarter at $638 billion. Once the data center infrastructure is in place and Oracle fulfills this demand, earnings and free cash flow should grow significantly.

The stock's forward price-to-earnings multiple has dropped to 17, while analysts have raised their earnings growth estimates to 28% annually over the next few years. The stock looks undervalued, but, of course, the shares could hit new lows before rebounding.

A slowdown in data center spending is a risk that would likely pressure the stock. But from a long-term perspective, the company's advantages in the cloud market and lower valuation could deliver outstanding compounding returns for investors.

Key Takeaways MetLife is embedding AI across core operations to improve efficiency and customer experiences.MET invested $3.2 billion in technology over five years to support enterprise-wide AI adoption.MET's Q1 2026 adjusted EPS rose 23.5% YoY, while its direct expense ratio improved to 11.9%. MetLife, Inc. (MET - Free Report) is increasingly embedding artificial intelligence (AI) across its business as part of its New Frontier strategy, with the goal of improving efficiency, enhancing customer experiences and supporting long-term growth. Rather than treating AI as a standalone initiative, the insurer is integrating the technology into core operations, from underwriting and claims to customer service and decision-making. This approach is helping the company simplify workflows while positioning it to compete more effectively in an evolving insurance market.

MetLife has invested more than $3.2 billion over the past five years to modernize its technology infrastructure. These investments are enabling broader AI adoption across the enterprise. AI tools are helping employees make faster decisions, reduce operational friction and deliver more personalized customer interactions. MetLife continues to emphasize responsible AI deployment through robust governance and risk management practices.

The company's AI investments are already supporting stronger operating performance. In the first quarter of 2026, adjusted earnings per share (EPS) increased 23.5% year over year to $2.42. At the same time, MetLife's direct expense ratio, excluding total notable items related to direct expenses and PRT, improved to 11.9% from 12% a year ago, reflecting continued productivity gains and disciplined cost management.

AI is becoming more than an operational tool for MetLife — it is evolving into a strategic differentiator. By combining technology-driven efficiency with disciplined execution and a diversified business model, the company is positioning itself to improve productivity, strengthen customer relationships and build a sustainable competitive advantage over the long run.

How Are Competitors Faring?Some of MET’s competitors adopting AI to improve operations include American International Group, Inc. (AIG - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) .

AIG is expanding its use of AI to improve underwriting accuracy, automate claims handling and strengthen risk assessment. American International Group is also using generative AI to support employees and streamline workflows, helping improve operational efficiency while delivering faster and more personalized customer service.

CNO Financial is adopting AI and advanced analytics to modernize customer engagement, automate routine processes and improve agent productivity. CNO is also investing in digital capabilities that simplify policy servicing and support more personalized insurance solutions, strengthening its long-term operating efficiency.

MET’s Price Performance, Valuation & EstimatesIn the year-to-date period, MET’s shares have risen 17.3% compared with the industry’s growth of 4.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, MET trades at a forward price-to-earnings ratio of 8.80, above the industry average of 8.27. MetLife carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MET’s 2026 earnings implies 13% growth from the year-ago period.

Image Source: Zacks Investment Research

MetLife currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HomeStock IdeasLong IdeasTech 

SummaryPalantir generated 85% revenue growth while operating expenses rose only 32%, driving 60% adjusted operating margins and 57% free cash flow margins.Stable stock-based compensation alongside rapidly growing revenue is allowing earnings and free cash flow to compound much faster than sales.Remaining performance obligations surged 134% to $4.5 billion, while 150% net dollar retention highlights expanding customer spending after deployment.Although Palantir trades near 38x forward sales, its long-term economics increasingly resemble software infrastructure rather than traditional enterprise software. South_agency/iStock via Getty Images

My earlier Palantir Technologies (PLTR) thesis was that the market mistakenly viewed AI as a threat to Palantir, whereas I believed it would become one of the key platforms enabling enterprise AI deployment. While I

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Key Takeaways AMC refinanced $400M of 12.75% debt with a $425M loan at 10.5%, extending maturity to 2031.AMC's $155.8 million note conversion lowers long-term debt to about $3.9 billion and removes covenants.AMC ended the first quarter of 2026 with $339 million in cash, excluding $42 million of restricted cash. AMC Entertainment Holdings, Inc. (AMC - Free Report) is advancing its balance-sheet restructuring through a combination of refinancing, debt conversion and liquidity enhancement. The company refinanced $400 million of debt carrying a 12.75% interest rate and maturing in 2027 with a new $425 million first-lien term loan carrying a 10.5% rate and maturing in 2031. The transaction extends the maturity by four years while lowering annual cash interest expense.

The refinancing materially reduces AMC’s near-term maturity burden. Following the transaction, the company’s only remaining debt maturity before 2029 is $125.5 million of 6.25% unsecured notes due in 2027. This longer maturity runway gives AMC greater flexibility to evaluate future refinancing opportunities based on market conditions rather than near-term funding requirements.

AMC is also converting approximately $155.8 million of senior secured exchangeable notes due in 2030 into equity. The company emphasized that the conversion lowers long-term debt to roughly $3.9 billion, compared with more than $5 billion before the pandemic. The removal of the exchangeable notes also eliminates associated covenants, providing additional flexibility to address the remaining debt structure.

Liquidity remains an important component of the broader balance-sheet strategy. AMC ended the first quarter of 2026 with $339 million in cash, excluding $42 million of restricted cash. The company also raised approximately $101 million through its at-the-market equity program and the sale of Hycroft Mining shares, supporting liquidity while preserving investment capacity for its core theater operations.

Looking ahead, AMC’s refinancing strategy remains closely connected to its operating execution. The interest rate on roughly $2.9 billion of debt declines as leverage improves, creating a direct link between EBITDA growth and lower borrowing costs. With near-term maturities largely contained, continued execution across pricing, premium-format expansion, loyalty programs, food-and-beverage initiatives and theater-portfolio optimization could support EBITDA growth, lower leverage, improve future refinancing terms and strengthen financial flexibility.

AMC’s Price Performance, Valuation & EstimatesShares of AMC have declined 38.4% in the past year compared with the industry’s 8.8% fall. In the same time frame, other industry players like Cinemark Holdings, Inc. (CNK - Free Report) have inched up 0.1%, while The Marcus Corporation (MCS - Free Report) has gained 30.2%.

AMC’s One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, AMC trades at a forward price-to-sales (P/S) multiple of 0.32, below the industry’s average of 2.65. Cinemark and Marcus have P/S ratios of 0.97 and 0.82, respectively.

AMC’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AMC’s 2026 loss per share has narrowed from 31 cents to 23 cents over the past 60 days.

EPS Trend of AMC Stock
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AMC’s 2026 loss per share suggests a 76% year-over-year improvement. Conversely, industry players like Cinemark and Marcus are likely to witness growth of 108.7% and 188.2%, respectively, year over year in 2026 earnings.

AMC’s Zacks RankAMC stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.