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If you have $1,000 that you can afford to invest in the stock market, dividend stocks can help make the most of your money, specifically those that are trading at low valuations. While buying Nvidia and investing in hot tech stocks can be alluring, they can also be volatile investments. You can set yourself up for safer returns by targeting much more reasonably priced options instead.

Three excellent dividend stocks that can make for more practical investments right now include PepsiCo (PEP +0.38%), AT&T (T +2.35%), and Pfizer (PFE +0.10%). Let's take a close look at these businesses and why these stocks look undervalued today.

Image source: Getty Images.

PepsiCo PepsiCo is a leader in the soft drink and snack market. Although it hasn't generated much growth of late, this is still a highly stable company to invest in. In each of the past three years, its revenue has been in excess of $90 billion, and earnings have been north of $8 billion.

This is also the 54th consecutive year that the company has increased its payout, which puts it in the category of a Dividend King. Not many stocks belong to the illustrious club, which features many of the safest income stocks to own. At 4.2%, PepsiCo also already offers a fairly high yield as it is; it's four times that of the S&P 500 average, which is just over 1%.

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While PepsiCo's stock has declined this year, it's an intriguing option to hold on to for the long term, given the value it possesses. Currently, it's trading at a forward price-to-earnings (P/E) multiple of 16, which is based on analysts' expectations of its future earnings.

AT&T Another excellent dividend stock to consider is AT&T. The telecom giant pays 4.5%, which is an even higher payout than PepsiCo. While the company hasn't raised its dividend in years, with AT&T's financials looking strong of late, it may only be a matter of time before it gets back to growing its payout. This year, the company projects its free cash flow to total at least $18 billion, which is far higher than the roughly $8.2 billion that it issues in dividends over the course of 12 months.

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At a forward P/E of just 11, the stock is incredibly cheap when compared to the average S&P 500 stock, which trades at 22 times its expected future earnings. With some great value and a high dividend, AT&T looks to be an underrated buy right now. This is a low-volatility investment you can safely hold on to, even amid uncertainty in the markets.

Pfizer Arguably, one of the best dividend stocks to own right now is Pfizer. At 6.7%, it's hard to find a payout this high without taking on high risk. The stock's payout ratio is over 100%, which is likely to spook investors, but that doesn't tell the whole story. This past year, the company incurred not only one-time acquisition-related expenses but also restructuring costs as it made its operations leaner and more efficient. Without those items, its financials would look much better, and the dividend would appear more sustainable.

Investors are, however, also concerned about what lies ahead for Pfizer due to patent cliffs around multiple drugs, which could weigh on its top line and thus result in an even worse bottom line. But with investments into growing its pipeline and adding valuable assets to expand its growth opportunities (hence the acquisitions), I believe the company is doing what is necessary to combat the challenges ahead.

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While its results remain stable right now, investors may be looking for further proof that the business is on the right track before buying the healthcare stock. But with it trading at a forward P/E of just under nine, there's some solid margin of safety that comes with this investment, which can make it worth the risk.

, /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its second-quarter 2026 (ending June 13) financial results and other related information on Thursday, July 9, 2026 by posting the following materials and links on the company's website at: www.pepsico.com/investors.

Form 10-Q, Press Release, Prepared Management Remarks at approximately 6:00 a.m. EDT Live question and answer session for analysts with Ramon Laguarta, Chairman and Chief Executive Officer, and Steve Schmitt, Chief Financial Officer at 8:15 a.m. EDT About PepsiCo 

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

SOURCE PepsiCo, Inc.

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Replacing $36,000 a year in income is roughly equivalent to generating the cash flow from a maximum Social Security benefit for a single retiree, or about $3,000 a month before taxes. A 66-year-old with $850,000 in a taxable brokerage account can build that income stream using five Dividend Aristocrats, relying on companies with decades-long records of raising dividends rather than reaching for yield through covered-call strategies, mortgage REITs, or other higher-risk income vehicles.

The math is straightforward: generating $36,000 annually from an $850,000 portfolio requires a blended yield of about 4.2%. That target falls comfortably within the conservative income tier and does not require exotic investments or aggressive assumptions.

The Five-Name Basket Each position is roughly $170,000, equal-weighted. The current yields, paired with the consecutive-increase streaks that earn each name its Aristocrat or Dividend King label:

Coca-Cola (NYSE:KO | KO Price Prediction) yields 2.6% with a 60-plus year streak. The quarterly payout just stepped up from $0.51 to $0.53. PepsiCo (NASDAQ:PEP) yields 3.9% after its 54th consecutive annual hike, a 4% raise that takes the quarterly to $1.42. Johnson & Johnson (NYSE:JNJ) yields 2.3%, a 64th straight increase, and FY 2025 free cash flow of $19.7 billion covering a $12.4 billion dividend bill 1.6 times over. Chevron (NYSE:CVX) yields 3.8% at $1.78 quarterly and has now returned over $5 billion to shareholders for 16 straight quarters. Altria (NYSE:MO) yields 5.8%, the high-yielder of the group, with FY 2026 EPS guided to $5.56 to $5.72. An equal-weighted blend lands near 3.5%, which on $850,000 produces closer to $30,000. Tilting the basket modestly toward Chevron, PepsiCo, and Altria (each held to roughly 20% of the portfolio, with Altria capped there because tobacco yield reflects real secular headwinds) pushes the blended yield to the 4.2% needed to clear $36,000. Every name carries a payout ratio screen of roughly 65% or below on free cash flow.

What the Other Yield Tiers Cost You The conservative path above requires the most capital. Step up the yield and the capital requirement drops fast.

Moderate tier (5% to 7%): preferred shares, REITs, covered-call equity funds. $36,000 divided by 0.06 equals $600,000. Dividend growth largely stalls and several of these vehicles cap your upside. Aggressive tier (8% to 14%): business development companies, mortgage REITs, leveraged option-income funds, high-yield bond funds. $36,000 divided by 0.10 equals $360,000. Distributions can be cut, principal often erodes, and the income rarely keeps pace with inflation. CPI just printed +0.6% month-over-month, so flat payouts lose ground in real terms. The Trade Most Retirees Underweight A portfolio yielding 3.5% and growing its income stream by 8% annually can double that income in roughly nine years. By contrast, a portfolio yielding 12% with no growth remains at the same income level and may ultimately produce less if distributions are reduced and net asset value declines over time. Coca-Cola’s quarterly dividend has increased from $0.35 in 2016 to $0.53 today, while Johnson & Johnson’s quarterly payout has risen from $0.75 to $1.34 over the same period. With the 10-year Treasury yielding about 4.5%, a basket of Dividend Aristocrats still offers a compelling combination of current income, dividend growth, and long-term capital appreciation that many static high-yield strategies struggle to match over a decade.

Three Things to Do Before You Build the Position Calculate your actual annual spending, not your salary. Many retirees discover they need to replace less than $36,000 once mortgage and payroll taxes drop off. Compare the 10-year total return of this Aristocrat basket against a 10% high-yield covered-call fund. JNJ alone returned 163% over ten years and CVX returned 176%; high-distribution funds rarely match that on total return. Hold the basket in a taxable account so the dividends qualify for the 15% to 20% rate. Most high-yield option-income products distribute ordinary income, which can cost a retiree in the 22% bracket several thousand a year versus this five-name approach.

PepsiCo has 41 trucks on the road in Arizona, Texas and Arkansas, bringing the technology into the mainstream.

PepsiCo is rated a strong buy, offering a 30% upside and a compelling 4.2% starting yield at current valuations. Recent quarters show accelerating organic growth, improved operating margins, and broad-based segment contributions despite prior underperformance. PEP trades at a discounted forward P/E of 15.4–16.3, well below its historical mean, while consensus EPS expectations continue to rise.

Pilot program integrates collaborations across industry partners to offset farmer investments in soil conservation practices

, /PRNewswire/ -- Compeer Financial is teaming up with PepsiCo (NASDAQ: PEP) and other industry partners to offer a pilot leasing program for strip-till equipment, helping offset upfront financial costs for farmers implementing soil conservation practices on their farms. Through RegenLend, Compeer Financial will lease the equipment to farmers, and PepsiCo will cover two annual lease payments to share the cost of investment with farmers. The Environmental Defense Fund (EDF) aided in the development of this program, and the Soil and Water Outcomes Fund (SWOF) are operational partners in its management and operations.

Through RegenLend equipment will be leased to farmers. PepsiCo will cover two annual lease payments to share the cost of investment with the farmers.

PepsiCo and Compeer Financial launch new pilot leasing program for farmers. "As a leading farm lender, we listen to the priorities and concerns of farmers we serve. Soil conservation practices continue to evolve and opportunities abound for farmers to learn about and improve soil health. RegenLend is a program designed to use supply chain incentives to help bridge the financial investment in soil health technology, such as new strip tillage systems, that can be a burden to farmers' bottom line," said Bryan Stanek, managing director of new markets with Compeer Financial. "We are proud to work with PepsiCo in creating unique programs like RegenLend as they are committed to supporting our farmers in their journey to realizing the long-term gains their land and operations can experience from improved soil health."

Strip-till can be an initial steppingstone for farmers exploring soil conservation practices to improve soil health on their farms. Strip tillage can improve soil health and contribute to long-term yield and water retention enhancements. The practice also can deliver fuel and labor cost savings on the farm through reduced trips across the field, improved efficiency in preparing the seedbed for planting and more precise fertilizer placement.

However, strip-till also comes with an upfront investment in equipment that can present a barrier to many farmers. The new RegenLend program addresses this barrier by leveraging a unique collaboration between the farmer, an ag lender and the food value chain.

"We are constantly looking for ways to collaborate with companies across the value chain to support farmers' efforts in producing a sustainable food supply. The RegenLend program is one example of how we are collaborating on unique programs that help farmers navigate rising costs and weather challenges so together we can build a more resilient food system," said Caitlin Colegrove, PepsiCo's sustainable agriculture lead for North America.

"Every farmer's conservation journey is different, and they need a variety of solutions to succeed," said Vincent Gauthier, senior manager of agriculture at EDF. "Financing that helps farmers invest in conservation equipment and technology is a critical part of that toolbox."

Using its expertise in innovative market-based sustainability solutions, EDF collaborated with Compeer Financial, SWOF and PepsiCo to develop the RegenLend pilot program to unlock investments and help farmers navigate the transition to conservation farming practices.

Dan Yeoman, managing director of SWOF, said, "Farmers are increasingly looking to practices like strip-till that improve soil health, reduce erosion, and preserve their land for the next generation. Innovative programs like RegenLend provide new, scalable pathways to support farmers through that transition — delivering long-term benefits for their operations, their watersheds, and the food supply chain."

In its initial pilot year, the RegenLend program is available to farmers interested in leasing strip-till equipment to implement soil conservation practices on at least 600 acres. More information is available at compeer.com/RegenLend.

Media Contact:
Rachel Kent
[email protected] 

About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $36.1 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.

Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About Soil and Water Outcomes Fund
The Soil and Water Outcomes Fund (SWOF) partners with public and private organizations to support farmer adoption of conservation practices that deliver measurable environmental outcomes within priority watersheds and partner supply sheds. Since 2020, SWOF has enrolled more than 3 million acres across 20 states, generating over 2.5 million metric tons of CO2e reductions and removals, over 20 million pounds of nitrogen runoff reductions, and 1.5 million pounds of phosphorus reductions. SWOF is a subsidiary of the Iowa Soybean Association.

About Environmental Defense Fund
With more than 3 million members, Environmental Defense Fund creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships to turn solutions into action. edf.org

Compeer Financial is an equal opportunity employer and provider, and an equal credit opportunity lender. This is not a commitment to lend, lease or extend credit. There is no guarantee that all applicants will qualify. Other restrictions, program and underwriting criteria apply. Terms, conditions and programs are subject to change without notice.

Contact:
Jill Carlson, Public Relations Strategist
[email protected] or (309) 502-2805

SOURCE PepsiCo, Inc.

Hilton Worldwide Holdings Inc. (HLT) Q1 2026 Earnings Call Transcript

Comerica Bank lessened its holdings in Hilton Worldwide Holdings Inc. (NYSE: HLT) by 38.8% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 40,991 shares of the company's stock after selling 25,950 shares during the period. Comerica Bank's

MCLEAN, Va.--(BUSINESS WIRE)--Hilton Worldwide Holdings Inc. (NYSE: HLT) (“Hilton”) announced today that its indirect subsidiary Hilton Domestic Operating Company Inc. (the “Issuer”) intends to offer $1 billion aggregate principal amount of the Issuer's Senior Notes due 2031 (the “Notes”). The Issuer intends to use the net proceeds of the offering to repay $450 million of borrowings under the Issuer's senior secured revolving credit facility, and the remainder for general corporate purposes. Th.

As Americans hit the road during the country’s 250th anniversary, Hilton is celebrating all summer long. Next week, Hilton is kicking off Hilton Honors America Experiences with a dozen unexpected and unforgettable road trip experiences for only 250 Hilton Honors Points per trip, Hampton by Hilton stays and gas included.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260518794144/en/

Hampton by Hilton is the perfect travel partner for any road trip. In fact, when traveling on major U.S. highways, the nearest Hampton hotel is no more than 30 minutes away on average.

These road trip packages, available on a first-come, first-served basis, will drop on the Hilton Honors Experiences platform starting on May 26th. From gazing at the starry sky in Utah or spectacular fireworks over the nation’s capital to joining quirky fan festivals for UFO or pickle enthusiasts to discovering America during an ultimate two-week open road adventure – 2026 Jeep® Grand Cherokee included – new Hilton Honors America Experiences will be added throughout the summer.

“In this milestone year celebrating America’s 250th anniversary, the open road feels especially meaningful – and Hilton Honors is proud to put our members at the center of it,” said Mark Weinstein, chief marketing officer, Hilton. “Through Hilton Honors America Experiences, we’re offering once-in-a-lifetime moments for just 250 Points, honoring the timeless American tradition of road trips, shared discovery, and the kind of spontaneous adventures that happen when you pile into the car and see where the journey takes you – with a great stay along the way that helps you focus on what matters most.”

Hilton Honors, the award-winning guest loyalty program, is free to join, and 250 Points can be earned with just a single night’s stay at a Hampton, allowing nearly anyone the opportunity to redeem their Points for these limited Hilton Honors America Experiences.

With nearly 2,400 locations in the United States, Hampton is the perfect travel partner for any road trip and a natural fit for the Hilton Honors America Experiences. In fact, when traveling on major U.S. highways, the nearest Hampton hotel is no more than 30 minutes away on average.

“For generations of travelers, Hampton has offered a reliable, trusted home base that families – including their four-legged companions – can count on at the end of a long drive,” said Shruti Gandhi Buckley, senior vice president and global brand leader, Hampton by Hilton. “As the country marks its 250th anniversary, we are proud to play a role in a once-in-a-lifetime event that feels authentic to Hampton’s legacy as a trusted stop on the road. Wherever the road leads this summer, Hampton is here to provide the comfort, convenience and welcoming service that make every mile easier.”

Here’s a preview of some of the adventures hitting the Hilton Honors Experiences platform in the coming weeks:

The Ultimate “Pursuit of Happiness” Open Road Adventure
A 14-day, build-your-own journey that brings the classic American road trip to life, including a 2026 Jeep® Grand Cherokee and free bp fuel for a year*. Combine bucket-list landmarks with blink-and-you’ll-miss-it roadside stops and unexpected detours along the way with the help of GetYourGuide. With stays at roadside-favorite Hampton along your chosen route, this adventure offers new ways to explore both iconic destinations and lesser-known gems from sea to shining sea.

Flora-Bama Fishing Rodeo
For one unforgettable summer weekend in early June, all eyes (and lines) are on the Flora‑Bama Fishing Rodeo. One of the largest fishing tournaments in the country, it draws crowds by the thousands – think big catches, bigger personalities and stories that get better with every retelling. Guests will have the opportunity to chase their own headline-worthy catch in Flora-Bama for the daily weigh-ins, where every fish feeds the frenzy and every moment feels like part of the show.

The Great American Outdoor Adventure
This scenic road trip through Zion and Bryce Canyon delivers peak Southwest stunners – towering cliffs, endless vistas, and views that demand a camera roll clear-out this summer. The grand finale? A private, astronomer-led stargazing session under some of the darkest skies in the country, where the stars absolutely steal the show.

VIP (Very Important Pickle) at the Picklesburgh Festival
Get ready to relish every moment. For one unforgettable mid‑July weekend, Pittsburgh goes full brine as Picklesburgh transforms the city into a pickle lover’s playground – complete with pickle beer, pickle ice cream, pickle cocktails and more creative crunch than anyone saw coming. Enjoy VIP access to the festival’s most sought-after events, including a pickle tasting, entry into “if you dare” contests like pickle bobbing and pickle juice drinking and even a spin on the legendary mechanical pickle. Capped off with a year’s supply of festival‑favorite pickles, this getaway is a big dill.

Celebrating America’s Birthday
For those who love a celebration, Washington D.C. will turn into the world’s largest birthday party on July 4th This Hilton Honors America Experience will give elevated access to the Great American State Fair, which transforms the National Mall in Washington, D.C., into the country’s biggest celebration of all things Americana with food, exhibits and cultural showcases from all 50 states. From coast-to-coast flavors to hometown traditions, it’s the ultimate mash-up of what makes America, America, served up in one unforgettable setting. The next day, enjoy early access seating for the 4th of July fireworks extravaganza, a star-spangled‑way to celebrate Independence Day right where history happens.

The American Coaster Fast Lane Road Trip
Built for thrill seekers who measure vacations in first drops and final loops, this high-adrenaline Hilton Honors America Experience takes riders on a four-day sprint through some of the country’s most legendary amusement parks this summer. Guests will conquer record-breaking coasters and follow an enthusiast-level itinerary curated by American Coaster Enthusiasts (ACE), receive an ACE membership and a hands-free action camera to capture those adrenaline-filled days.

Roswell UFO Festival
Things get a little extraterrestrial in Roswell, N.M., where VIP access to the Roswell UFO Festival unlocks VIP fun at the International UFO Museum & Research Center and unforgettable moments at the can’t-miss drone show this July. The guest will dive headfirst into the action, serving as judge for the Pet and Human Costume Contests and then proudly joining the UFO parade.

Every trip includes accommodations at Hampton by Hilton hotels, a Hampton-themed road trip starter kit and a $250 bp fuel card.

How Hilton Honors America Experiences Work
Hilton Honors America Experiences will drop this summer on the Hilton Honors Experiences website, and when they do, they won’t last long. Members can visit Hilton Honors Experiences to explore upcoming experiences. To be among the first to know when new experiences go live, members can download the Hilton Honors app and enable push notifications. Drop announcements will also be shared across Hilton social channels. Terms and conditions apply.

Enrollment in the award-winning Hilton Honors program is free and immediately unlocks access to exclusive benefits, such as member-only discounts, Points toward free night stays, no blackout dates and access to once-in-a-lifetime experiences like these. The latest evolution of Hilton Honors makes earning status even more achievable and rewarding, opening the door for more travelers to enjoy added recognition, perks and flexibility on every stay. Members can also reach elite status faster, now making Hilton Honors Gold status the most valuable mid-tier, all while keeping the benefits Gold and Diamond members appreciate the most.

Hilton Celebrates America’s 250th Anniversary All Summer Long
Hilton is celebrating the nation’s 250th anniversary all summer long through a range of activations that highlight the joy of travel. In addition to the Hilton Honors America Experiences, Hilton is also bringing the milestone to life through on‑property activations and programming across its portfolio, creating meaningful moments that honor the people, places and stories that shape the thrill of travel from coast to coast.

*A year’s worth of bp® fuel, provided as a $5,000 bp® gift card(s), to be used toward fuel purchases at participating bp locations.

About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 27 world-class brands comprising more than 9,200 properties and over 1.3 million rooms, in 144 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 4 billion guests in its more than 100-year history. Named as the No. 1 World’s Best Workplace by Great Place to Work and Fortune, Hilton aims to create the best culture for its 500,000 team members around the world. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 250 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on Facebook, LinkedIn, Instagram and YouTube.

About Hilton Honors
Hilton Honors is the award-winning guest loyalty program for Hilton’s world-class brands comprising 9,200 properties in 144 countries and territories, with more than 250 million members. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits – from the Points & Money slider and exclusive member discounts to no blackout dates and the Fifth Night Free perk on reward stays booked with all Points. Members can earn and redeem Points for free nights, purchases on Amazon, exclusive experiences and charitable contributions, including through select co-branded credit cards. Members also have access to contactless technology exclusively through the industry-leading Hilton Honors app, where they can check in, choose and access their room using Digital Key. The next evolution of the Hilton Honors program makes earning elite status even more achievable and rewarding and includes the introduction of the new Diamond Reserve tier. Hilton Honors is free to join, and travelers can enroll online at hiltonhonors.com. Learn more about the program at stories.hilton.com/hiltonhonors, and follow Hilton Honors on Facebook, X and Instagram.

About Hampton by Hilton
As the No. 1 ranked lodging franchise for the last 17 years by Entrepreneur®, Hampton by Hilton — including Hampton Inn by Hilton and Hampton Inn & Suites by Hilton — serves quality-driven and value-conscious travelers at more than 3,200 properties in 46 countries and territories around the globe. The brand continues to lead its segment by providing guests with high quality, thoughtfully designed accommodations and amenities, such as modern, spacious rooms and free hot breakfast featuring the signature Hampton Waffle. Hampton by Hilton is committed to delivering an exceptionally friendly and authentic service, all backed by the 100% Hampton Guarantee™. Experience a best-in-class stay at Hampton by Hilton by booking at hampton.com or through the industry-leading Hilton Honors app. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits. Learn more about Hampton by Hilton at stories.hilton.com/hampton, and follow the brand on Facebook, Instagram and X.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260518794144/en/

Republican California gubernatorial candidate Steve Hilton discusses the tight race, the Trump administration's crackdown on fraud, the state's energy policies and addresses Google's map imagery update. 00:00 California Gubernatorial Race: Hilton vs.

Hilton Worldwide (HLT) reported earnings 30 days ago. What's next for the stock?

HARDEEVILLE, S.C.--(BUSINESS WIRE)-- #DST--LRT Company, a land acquisition and real estate investment firm that specializes in land entitlements and ground lease financing, and sponsors 1031 exchange offerings, announced today that it has launched LRT Hardeeville Multifamily 1 DST. The all-cash, Delaware statutory trust private placement seeks to raise $21 million in equity. The offering is LRT's fifth Delaware statutory trust of a property ground-leased for development; the company's four prior DST o.

California gubernatorial candidate Steve Hilton joins 'Varney & Co.' to discuss his early lead in the governor's race and why he believes voters are ready for change after years of Democratic control.

HONOLULU--(BUSINESS WIRE)--Hilton Hawaiian Village Waikiki Beach Resort today announced the completion of the highly-anticipated renovation of its legendary Rainbow Tower, marking a major milestone during the resort's 65th anniversary year. An enduring symbol of Waikiki and one of Hawai‘i's most recognizable landmarks, the Rainbow Tower has been reimagined with refreshed guest rooms, locally inspired design, and curated artwork that celebrates the islands' rich culture, offering families and tra.

U.S. PayPal users traveling in China will soon be able to complete payments at tens of millions of Weixin Pay merchants across China by scanning QR codes.

PayPal Holdings, Inc. (PYPL) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

Starting in March 2026, Enrique Lores started his new role as PayPal's President and CEO. He was quick in announcing new rationalization efforts targeting $1.5 billion in annual run-rate savings. Management reiterated its previous guidance released last February, with adjusted free cash flows and share repurchases both expected at around $6.0 billion in 2026. Based on PYPL's current market capitalization of $39.0 billion, this represents a ~15% free cash flow yield, which is the highest in my coverage universe at the moment.

Everyone loves a good rebound stock, especially investors who’ve hung around long enough to benefit from a big bounce-back share price.

Exhibit A is Apple, which saw its stock fall to below $1.00 per share in 1997, mostly due to floundering financials, toxic management, near-bankruptcy, and a huge stock selloff purportedly engineered by co-founder Steve Jobs.

After Jobs reclaimed the big seat and streamlined the company’s product line and laid the groundwork for the iPod, iPhone, and Mac, AAPL’s stock took off on a nearly 30-year resurgence, and it’s trading at $312 today and boasts a $4.57 trillion market cap.

The lesson for investors is clear-cut. Truly elite rebound stocks often share common characteristics: strong brands, loyal customers, solid balance sheets and management teams capable of adapting when markets assume the worst.

Here are three companies that look primed for just that kind of rebound.

Internally, Globant’s C-suite is showing quiet confidence in the company.

Trading at $39 per share in late May, analyst consensus on GLOB is highly bullish at $60 per share, indicating 52.4% upside, which should steer plenty of investors into buy mode on Global SA stock soon enough.

PayPalThat’s evident in the current stock price, which stands at $44.00 per share heading into June. That’s down 23.4% for the year and down 36.4% over the last year. Yet a rally may be brewing with PayPal. Option calls have outpaced puts this month, and implied volatility has slid below its 52-week minimum.

So what does the smart money know about PayPal stock that Main Street investors don’t?

Benzinga has a consensus price target of $65 for the stock, based on a review of 41 Wall Street analysts. RBC Capital analyst Daniel Perlin is on board, issuing a Buy call on the stock and pegging the stock’s price target at $59 per share, noting the company’s restructuring efforts could stabilize operations.

For contrarian investors, the setup resembles other large-cap tech recoveries, where a once-dominant stock is regaining Wall Street’s confidence in mid-2026. For rebound-minded investors looking for a big brand name to buy at a discount, PayPal is making a good case for itself. 

The Next Major Catalyst Hits June 6. Are You Reading the Right Signals?

NikeMore broadly, the stock has fallen sharply again in 2026, down 26% year to date, with some analysts calling the current environment one of the most difficult stretches Nike has faced in decades. Yet several Wall Street firms believe Nike may finally be approaching a bottom, as the stock has returned 5.5% in May alone.

Barclays concurs with that assessment, recently upgrading the stock to “Overweight,” noting Nike likely reached a “fundamental bottom” after the massive selloff. The firm raised its price target to $73, citing operational improvements and more disciplined management execution under CEO Elliott Hill.

Why Rebound Stocks Are Up Off the Mat In 2026No doubt, investor focus has locked in on AI winners and mega-cap momentum trades in 2026. No surprise there, except that environment has left many out-of-favor companies trading at historically cheap valuations.

There’s also a decent case to be made that not every beaten-down stock recovers. Some laggards deserve their steep declines.

Yet companies with durable brands, strong balance sheets and viable long-term growth drivers often become attractive precisely when investor sentiment turns overwhelmingly negative. Sure, Globant, PayPal and Nike each face different risks. Yet all three still control major competitive advantages in large global markets.

If economic conditions stabilize, corporate spending improves, and investor appetite broadens beyond the narrow AI trade we’re seeing right now, this trio of stocks should turn heads as the most intriguing rebound candidates heading into the second half of 2026.

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PayPal NASDAQ: PYPL President and CEO Enrique Lores outlined a broad operational and technology reset for the payments company at Bernstein's 46th Annual Strategic Decisions Conference, saying the company has substantial opportunities to simplify its structure, modernize its technology platform and reinvest savings into growth.

Paypal (PYPL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this technology platform and digital payments company have returned -10.3%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Financial Transaction Services industry, which Paypal falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Paypal is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.2%.

For the current fiscal year, the consensus earnings estimate of $5.3 points to a change of -0.2% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $5.78 indicates a change of +9.1% from what Paypal is expected to report a year ago. Over the past month, the estimate has changed -0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Paypal.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Paypal, the consensus sales estimate for the current quarter of $8.5 billion indicates a year-over-year change of +2.6%. For the current and next fiscal years, $34.26 billion and $35.71 billion estimates indicate +3.3% and +4.2% changes, respectively.

Last Reported Results and Surprise HistoryPaypal reported revenues of $8.35 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.33 a year ago.

Compared to the Zacks Consensus Estimate of $8.11 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +5.51%.

Over the last four quarters, Paypal surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Paypal is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paypal. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Paypal (PYPL) reported earnings 30 days ago. What's next for the stock?

PayPal Holdings, Inc. has shifted from a growth story to a deep value play, with top-line acceleration hopes dashed. Intense competition and market saturation have led to muted revenue and margin growth, but the stock trades at just 7.7x earnings. Management is targeting at least $1.5 billion in cost savings over 2–3 years, leveraging AI and aggressive share repurchases as key catalysts.

PYPL declines 8.6% in three months as weak 2026 guidance, macro headwinds and competition weighed, even as Venmo and AI commerce efforts expand.

Total revenue of $140 million in the first quarter of 2026 Pfizer agreement announced in January for non-exclusive license to utilize Matrix-M® in two infectious disease areas  In April, Novavax signed a new MTA with a top 10 leading pharmaceutical company and leader in oncology to explore Matrix-M in multiple oncology and infectious disease targets In April, Novavax expanded an existing partnership with a new MTA, providing access to Matrix-M for exploration in up to nine additional identified infectious diseases In February, Novavax expanded an existing MTA with a major global pharmaceutical company to explore an additional field and signed a new MTA with an oncology company Sanofi announced positive results from the Phase 4 COMPARE study, a head-to-head study comparing Nuvaxovid™ and Moderna's mNEXSPIKE that reinforces Nuvaxovid's well established and differentiated reactogenicity profile Novavax's C. difficile vaccine candidate prioritized with potential to enter the clinic as early as 2027 Reiterates 2026 Revenue Framework and Combined R&D and SG&A expense guidance , /PRNewswire/ -- Novavax, Inc. (Nasdaq: NVAX) today announced its financial results and operational highlights for the first quarter ended March 31, 2026.

"Novavax continued to make significant progress executing our corporate strategy, which is comprised of partnering our technology, capital-efficient R&D innovation and a lean operating platform. In 2026, we signed a new, Matrix-M license with Pfizer for up to two vaccine candidates and secured four additional MTAs with a growing list of large pharmaceutical and innovative biotech companies," said John C. Jacobs, President and Chief Executive Officer, Novavax. "With these agreements in place, our partners have the right to evaluate Matrix in over 30 unique fields of experimentation targeting more than 50% of the projected over $100 billion market for infectious disease and oncology vaccines and immuno-therapeutics. In addition, Novavax continued to advance our own R&D efforts with the selection of our C. difficile vaccine candidate as our next potential asset to advance to the clinic as early as 2027."

First Quarter 2026 and Recent Highlights

Key Business Highlights

In January 2026, Novavax entered into a license agreement with Pfizer for use of Novavax's Matrix-M adjuvant in vaccine development. Under the terms of the agreement, Pfizer was granted a non-exclusive license for Matrix-M use in two infectious disease areas.  Novavax received an upfront payment of $30 million in the first quarter of 2026 and has the potential for up to $500 million in additional development and sales milestones.  In addition, Novavax is eligible to receive high-mid-single digit percentage royalties on sales from products incorporating Matrix-M.  Pfizer will be solely responsible for the development and commercialization of its products utilizing Matrix-M, and Novavax will be responsible for the supply of Matrix-M.  This partnership has the potential to generate billions of dollars of revenue for Novavax over the life of the agreement.  In 2026, Novavax continued to expand its Matrix-M partnering efforts with global pharmaceutical companies and innovative biopharma companies. In April, Novavax signed a new material transfer agreement (MTA) with a top ten global pharmaceutical company who is also a global leader in oncology to explore Matrix-M in a broad array of oncology targets, as well as antibiotic resistant bacterial infections and other infectious diseases. In April, Novavax signed a new MTA with an existing pharmaceutical partner for evaluation of Matrix-M in nine additional, identified disease areas. In February, Novavax expanded an existing MTA with a major global pharmaceutical company to explore an additional field and signed a new MTA with an innovative oncology company. In total, Novavax now has MTA collaborations and/or license agreements with four of the top ten global pharmaceutical companies and a number of innovative biotech companies who, collectively, have the right to explore Matrix-M in over 30 unique fields of experimentation across both infectious diseases and oncology. The goal of Novavax's MTA collaborations is to enable exploration of Matrix-M with the intent of entering into deeper partnership via formal license agreements, that in turn results in the advancement of a partner's research and development (R&D) clinical work toward the potential commercialization of innovative vaccines. The broad utility of Novavax's technology has resulted in several companies exploring Matrix-M for application in the same high-potential markets, including infectious disease areas such as cytomegalovirus, Epstein-Barr Virus,  pneumococcal and respiratory syncytial virus (RSV); and also includes overlap in oncology areas such as colorectal cancer, head and neck cancer and pancreatic cancer. Existing partners under license and MTA agreements, have the right to address fields of experimentation that cover over 50% of the global market opportunity for infectious disease and oncology vaccines and immuno-therapeutics, which is projected to grow to over $100 billion by the early 2030s. In April, Sanofi announced positive Phase 4 results from the COMPARE study, a head-to-head study showing that Nuvaxovid™ demonstrated statistically significant lower side effects compared to Moderna's mNEXSPIKE across all pre-specified endpoints, reinforcing Nuvaxovid's well-established and differentiated reactogenicity profile ahead of the fall season. Continued to progress Novavax R&D innovation in support of its growth strategy.   Clostridioides difficile colitis (C. difficile) vaccine candidate prioritized as potential next asset to enter the clinic as early as 2027. Preliminary preclinical data generated by Novavax on its varicella-zoster virus (shingles) and RSV early-stage assets were positive and provide path forward for informing the Company's future antigen design and adjuvant work. Ongoing adjuvant research is intended to expand the utility of its technology by creating new adjuvants tailored to foster specific differentiated immune properties for certain diseases that may require unique immune responses. Novavax continued to progress its cost reduction program to create a more lean and agile organization.  Targeting full year Non-GAAP combined R&D and Selling, General and Administrative (SG&A) expenses of $325 million for full year 2026 and $225 million for full year 2027, each period at the midpoint of the guidance range. Improving the 2028 target for full year Non-GAAP combined R&D and SG&A expenses to between $150 million and $200 million. This reflects an anticipated expense reduction of over $200 million and over 50% when compared to full year 2025. First Quarter 2026 Total Revenue

First quarter 2025 Nuvaxovid sales included $603 million of non-cash sales related to the close-out of two Advance Purchase Agreements (APA). 

First Quarter

$ in millions

Q1 2026

Q1 2025

Change

%

Nuvaxovid Sales1

$10

$608

($598)

(98 %)

Supply Sales 2

33

14

19

139 %

Product Sales

42

622

(579)

(93 %)

Sanofi3

49

40

9

21 %

Pfizer

Takeda

30

0

30

NM

Serum

7

4

3

65 %

Other Partners 4

11

0

11

NM

Licensing, Royalties and
Other Revenue

97

45

52

116 %

Total Revenue

$140

$667

($527)

(79 %)

Notes 

1.

Nuvaxovid Sales reflects product sales where Novavax is the commercial market lead and records revenue related to the sales and distribution of its COVID-19 vaccine.

2.

Supply Sales includes sales of finished product, adjuvant and other supplies from Novavax to its license partners.

3.

Sanofi includes revenue recognized under the license agreement including upfront payments, milestones, royalties and transition services reimbursement.

4.

Other Partners include upfront payments, royalties and milestone revenue under licensing agreements including Takeda and SK bioscience.

First Quarter 2026 Financial Results

Total revenue for the first quarter of 2026 was $140 million, a 79% decrease compared to $667 million in the same period in 2025. Higher Nuvaxovid product sales for the first quarter of 2025 were primarily due to $603 million of non-cash sales revenue recognized with the close-out of two APAs. Licensing Royalties and Other revenue of $97 million in the first quarter of 2026 included $30 million related to the Pfizer Matrix-M agreement signed in January 2026. Cost of sales for the first quarter of 2026 was $31 million, compared to $14 million in the same period in 2025. R&D expenses for the first quarter of 2026 were $95 million, compared to $89 million in the same period in 2025. The higher R&D costs were primarily associated with COVID-19 postmarketing commitment studies and annual strain change activities. R&D expenses reimbursed by partners in the first quarter of 2026 were $28 million. Non-GAAP R&D expenses, net of partner reimbursement, were $68 million in the first quarter of 2026, a 13% decrease when compared to $78 million in the same period in 2025. The lower Non-GAAP R&D expenses were driven by the ongoing Novavax cost reduction program as it streamlines operations to make targeted R&D investments. SG&A expenses for the first quarter of 2026 were $29 million, a 40% decrease compared to $48 million for the same period in 2025. The decrease was primarily due to the transition of lead commercial activities to Sanofi and the elimination of commercial infrastructure plus the ongoing general administrative cost reduction program. Net Loss for the first quarter of 2026 was $9 million, compared to net income of $519 million in the same period in 2025. First quarter of 2025 net income benefited from $603 million of non-cash sales related to the close-out of two APA agreements.  Cash, cash equivalents, marketable securities and restricted cash (Cash) were $795 million as of March 31, 2026, compared to $751 million as of December 31, 2025. In February 2026, Novavax announced a $330 million credit facility with MidCap Financial, including an initial capital draw of $50 million. The credit facility was put in place to further strengthen Novavax's balance sheet and provide access to non-dilutive capital as Novavax advances its growth strategy. Financial Framework

Reiterates Full Year 2026 Financial Guidance

Novavax reiterates its Full Year 2026 Financial Guidance for Combined R&D and SG&A Expenses and Non-GAAP Combined R&D and SG&A Expenses and expects to achieve the following results:

$ in millions

Full Year 2026

(as of May 6, 2026)

Combined R&D and SG&A Expenses

$380 - $420

Less: R&D Reimbursements

($70 - $80)

Non-GAAP Combined R&D and SG&A Expenses

$310 - $340

Non-GAAP Combined R&D and SG&A Expenses exclude R&D Reimbursements, which are amounts reimbursed by Novavax's license partners. See "Non-GAAP Financial Measures" below. R&D Reimbursements are recorded as revenue under Licensing, Royalties and Other Revenue. 

Reiterates Full Year 2026 Revenue Framework

For 2026, Novavax reiterates its 2026 Revenue Framework and expects to achieve Adjusted Total Revenue4 of between $230 million and $270 million. Novavax transitioned lead commercial responsibility of Nuvaxovid beginning with the 2025-2026 COVID-19 vaccination season to Sanofi for select markets. Since Novavax is reliant on Sanofi's sales forecasts for certain revenue components, these are not included in the Full Year 2026 Revenue Framework.

$ in millions

Full Year 2026

(as of May 6, 2026)

Nuvaxovid Product Sales1

$35 - $45

Adjusted Supply Sales2

$40 - $50

Adjusted Licensing, Royalties and Other Revenue3

$155 - $175

Adjusted Total Revenue4

$230 - $270

Sanofi Supply Sales, Sanofi Royalties and Sanofi Milestones

No guidance

Revenue Category

Revenue Framework Footnotes

Nuvaxovid Product Sales1

$35 million to $45 million in Nuvaxovid Product Sales by Novavax under existing APA and commercial agreements. 

Adjusted Supply Sales2

$40 million to $50 million in Adjusted Supply Sales associated with collaborations with the Serum Institute on R21/Matrix-M and collaboration partners for COVID-19 vaccine, including Serum and Takeda. 

Adjusted Licensing, Royalties and Other Revenue3

$70 million to $80 million in R&D Reimbursement. Under the Sanofi co-exclusive licensing agreement (CLA), Novavax is eligible to receive reimbursement for costs incurred related to select R&D and technology transfer activities during the transition performance period.    $50 million to $60 million in Other Partner related revenue including royalties and milestones from Pfizer, Serum on R21/Matrix-M and collaboration partners for COVID-19 vaccine, including Serum and Takeda. Includes a $30 million upfront payment under the Pfizer agreement received in the first quarter of 2026. $35 million amortization related to the $500 million Upfront Payment and the $50 million Database Lock Milestone. Revenue recognition will occur over the transition performance period. Adjusted Total Revenue4

Adjusted Total Revenue is a Non-GAAP Financial Measure. Adjusted Total Revenue is total revenue excluding Sanofi Supply Sales, Sanofi Royalties and Sanofi Milestones. See "Non-GAAP Financial Measures." Components of Revenue excluded from the Full Year 2026 Revenue Framework are described below.

Sanofi Supply Sales

Novavax will sell Nuvaxovid commercial supply to Sanofi for the 2026-2027 COVID-19 vaccination season and the reimbursement for this supply will be recorded as product sales. Sanofi Royalties

Sanofi will lead commercial activities for the 2026-2027 COVID-19 vaccination season in select markets, including the U.S. Novavax is eligible to receive royalties in the high teens to low twenties percent on Sanofi sales. Sanofi Milestones

Novavax is eligible to receive a $75 million milestone payment related to the completion of the technology transfer of the Nuvaxovid manufacturing process to Sanofi. Novavax is eligible to receive up to $350 million in Phase 3 development and commercial launch milestone payments associated with Sanofi influenza-COVID-19 combination products. For each new vaccine using Matrix-M, Novavax is eligible to receive up to $200 million in launch and sales milestones and mid-single digit sales royalties for 20 years. Conference Call
Novavax will host its quarterly conference call today at 8:30 a.m. Eastern Time (ET). To join the call without operator assistance, you may register and enter your phone number at https://registrations.events/easyconnect/1309751/reczqKfVCuLMAhd3l/ to receive an instant automated call back. You may also dial direct to be entered into the call by an operator. The dial-in numbers for the conference call are (888) 880-3330 (Domestic) or (+1) (646) 357-8766 (International). Participants will be prompted to request to join the Novavax, Inc. call. A replay of the conference call will be available starting at 11:30 a.m. ET on May 6, 2026, until 11:59 p.m. ET on May 13, 2026. To access the replay by telephone, dial (800) 770-2030 (Domestic) or (+1) (609) 800-9909 (International) and use passcode 1309751#.

A webcast of the conference call can also be accessed on the Novavax website at ir.novavax.com/events. A replay of the webcast will be available on the Novavax website until June 6, 2026.

About Novavax
Novavax, Inc. (Nasdaq: NVAX) tackles some of the world's most pressing health challenges with its scientific expertise in vaccines and its proven technology platform, including its Matrix-M adjuvant and protein-based nanoparticles. The Company's corporate growth strategy is designed to deliver value via three key strategic pillars: partnering its technology, capital-efficient R&D innovation and a lean and efficient operating model. This includes maximizing impact through partnerships for its marketed products (Nuvaxovid, R21/Matrix-M™), Matrix technology and R&D assets. Please visit novavax.com and LinkedIn for more information.

Non-GAAP Financial Measures
The Company presents the following non-GAAP financial measures in this press release: Non-GAAP Combined R&D and SG&A Expenses, Adjusted Total Revenue and Adjusted Licensing, Royalties and Other Revenue. Non-GAAP financial measures refer to financial information adjusted from financial measures prepared in accordance with accounting principles generally accepted in the United States (GAAP). The Company believes that the presentation of these adjusted financial measures is useful to investors as they provide additional information on comparisons between periods by including certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes and to consider underlying trends of its business. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Our use of non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. The Company is unable to reconcile these revenue forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable effort because the Company is reliant on Sanofi sales forecasts for certain revenue categories, which are not available.

Forward-Looking Statements
This press release contains forward-looking statements relating to the future of Novavax, its mission; its corporate strategy and operating plans, objectives and prospects; its value drivers and strategic priorities; its partnerships, including expectations with respect to potential partner product sales and royalties, milestones and other commercial objectives, and cost reimbursement, Matrix-M's potential utility in partners' vaccine portfolios and plans for additional potential partnering activities; the development of Novavax's clinical and preclinical product candidates and pipeline advancement opportunities the conduct, timing and potential results from clinical trials, conducted by Novavax or its partners, and other preclinical and postmarketing commitment (PMC) studies; expectations as to the timing and outcome of future and pending regulatory filings and actions; full year 2026 financial guidance and revenue framework; and Novavax's future financial or business performance. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, Novavax's ability to successfully and timely obtain and maintain full U.S. FDA licensure or foreign regulatory approvals necessary to manufacture, market, distribute, or deliver its COVID-19 vaccine; the impact of delays in obtaining regulatory approval, including regulatory decisions impacting labeling, approval or authorization, including the scope of the indicated population, product dosage, manufacturing processes, shelf life, safety, for our product candidates; challenges in conducting the PMC study, our ability to obtain adequate additional funding to maintain our current level of operations and fund the further development of our vaccine candidates; challenges related to Novavax's partnership with Sanofi, including collaboration on the Nuvaxovid PMC, and in pursuing additional partnership opportunities; challenges satisfying, alone or together with partners, various safety, efficacy, and product characterization requirements, including those related to process qualification, assay validation and stability testing, necessary to satisfy applicable regulatory authorities; challenges or delays in conducting clinical trials or studies for its product candidates; manufacturing, distribution or export delays or challenges; Novavax's substantial dependence on Serum Institute of India Pvt. Ltd. and Serum Life Sciences Limited for co-formulation and filling Novavax's COVID-19 vaccine and the impact of any delays or disruptions in their operations; the impact of potential legislative, regulatory, or policy changes under the current presidential administration, including any adverse impact funding for vaccine research and development, reimbursement for vaccines and their administration, vaccine mandates and recommendations, and public perception of vaccine importance; uncertainty with respect to pricing, third-party reimbursement and healthcare reform; uncertainty in the regulatory pathway for Novavax's COVID -19 Vaccine; the impact of any new or changes in interpretations of existing trade measures, including tariffs, embargoes, sanctions, import restrictions, and export licensing requirements; difficulty obtaining scarce raw materials and supplies including for its proprietary adjuvant; resource constraints, including human capital and manufacturing capacity; constraints on Novavax's ability to pursue planned regulatory pathways, alone or with partners, in multiple jurisdictions simultaneously, leading to staggering of regulatory filings, and potential regulatory actions; Novavax's ability to timely deliver doses; challenges in obtaining commercial adoption and market acceptance of its COVID-19 vaccine or any COVID-19 variant strain containing formulation, or for its CIC vaccine candidates, stand-alone influenza vaccine candidates or other candidates; challenges meeting contractual requirements under agreements with multiple commercial, governmental, and other entities, including requirements to deliver doses that may require Novavax to refund portions of upfront and other payments previously received or result in reduced future payments pursuant to such agreements; challenges related to the seasonality of vaccinations against COVID-19; challenges related to the demand for vaccinations against COVID-19 or influenza; challenges in identifying and successfully pursuing innovation expansion opportunities; Novavax's expectations as to expenses and cash needs may prove not to be correct for reasons such as changes in plans or actual events being different than its assumptions; and those other risk factors identified in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Novavax's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission (SEC). We caution investors not to place considerable reliance on forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and www.novavax.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

NOVAVAX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share information)

Three Months Ended March 31,

2026

2025

(unaudited)

Revenue:

Product Sales

42,200

621,678

Licensing, royalties and other

97,314

44,977

Total revenue

139,514

666,655

Expenses

Cost of Sales

30,695

14,115

Research and Development

95,472

88,937

Selling, general, and administrative

28,777

48,090

Total expenses

154,944

151,142

Income (loss) from operations

(15,430)

515,513

Other income (expense):

Interest expense

(4,901)

(5,723)

Other income, net

11,825

10,056

Income (loss) before income tax expense

(8,506)

519,846

Income tax expense

985

1,200

Net income (loss)

(9,491)

518,646

Net income (loss) per share

Basic

(0.06)

3.22

Diluted

(0.06)

2.93

Weighted average number of common shares outstanding

Basic

163,276

161,049

Diluted

163,276

177,625

SELECTED CONSOLIDATED BALANCE SHEET DATA

(in thousands)

March 31, 2026

December 31, 2025

(unaudited)

Cash and cash equivalents

228,363

240,634

Marketable securities

561,969

494,450

Total restricted cash

4,562

15,418

Total current assets

850,816

978,276

Working capital

508,355

518,326

Total assets

1,043,162

1,176,512

Convertible notes payable

291,039

244,213

Total stockholder's deficit

(144,762)

(127,753)

NOVAVAX, INC.

Reconciliation of GAAP to NON-GAAP Financial Results

(unaudited)

($ in millions)

Three Months Ended

March 31,

2026

2025

Total Revenue

139.5

666.7

Adjustments:

Sanofi Supply Sales Adjustment

17.1

1.2

Sanofi Royalties Adjustment

3.5

0

Adjusted Total Revenue

$                   118.9

$                   665.5

R&D Expenses

95.5

88.9

Adjustments:

R&D Reimbursement

27.7

11.3

Non-GAAP R&D Expenses

$                     67.8

$                     77.6

Combined R&D and SG&A Expenses

124.3

137.0

Adjustments:

R&D Reimbursement

27.7

11.3

Non-GAAP Combined R&D and SG&A Expenses

$                     96.6

$                   125.7

Contacts:

Investors
Jim Kelly
844-668-2829
[email protected]

Media
Yvonne Sprow
844-264-8571
[email protected]

SOURCE Novavax, Inc.