4:15pm: SpaceX launches into public markets Wall Street wrapped up the week on a positive note Friday, with investors cheering the blockbuster stock market debut of SpaceX.
The Dow Jones Industrial Average climbed 354 points, or 0.7%, to close at 51,202, while the S&P 500 gained 37 points, or 0.5%, to finish at 7,431. The Nasdaq Composite added 79 points, or 0.3%, ending the session at 25,889.
The day's biggest story was SpaceX, which surged 19% in its first day of trading after one of the most anticipated IPOs in market history. The stock closed near $161, well above its offering price, giving the company a market valuation of roughly $2.1 trillion and underscoring strong investor appetite for high-growth technology and space-related businesses.
The strong debut helped lift broader market sentiment and offset lingering concerns about volatility in the technology sector. By the closing bell, all three major indexes had posted gains, capping off a solid week for equities as investors embraced risk and welcomed a landmark addition to the public markets.
2:15pm: SpaceX keeps gaining SpaceX stock peaked around $175 a share just hours into trading but lost a little bit of ground during the afternoon, now sitting just below $170.
It still is the largest IPO ever, though.
1:05pm: Adobe beat overshadowed by CFO departure Adobe Inc (NASDAQ:ADBE) shares fell 6.7% on Friday after the software company cut its organic annual recurring revenue growth guidance, announced a surprise CFO departure, and signaled a shift toward freemium AI products that analysts say leaves key monetization questions unanswered.
The company reported fiscal second-quarter revenue of $6.62 billion, up 12.7% year-over-year and ahead of its guidance range, with non-GAAP earnings per share of $5.96 also beating forecasts.
But the results were overshadowed by a reduction in organic ARR growth guidance and the abrupt departure of CFO Dan Durn, who is leaving to become CFO of Marvell Technology.
"While the push for customer acquisition is likely the right strategy, it adds to the list of transition items and leaves AI monetization unanswered," Jefferies wrote, noting valuation is depressed but that it sees no near-term catalyst.
12:10pm: SpaceX opens at $150 SpaceX’s closely watched public debut is off to a flying start.
The stock, trading under $SPCX, opened at $150 after pricing its IPO at $135 — already signaling strong demand right out of the gate. Before the open, CNBC reported indications of a $175 launch price, underscoring just how heated expectations had become heading into the listing.
Since trading began, momentum has stayed firm. The shares have climbed to about $159.18, up roughly 18% in the first stretch of trading as investors pile into what is shaping up to be one of the most closely followed IPOs in years.
It’s a volatile but upbeat start, with early price action suggesting the market is still trying to find equilibrium after a heavily anticipated debut.
12:00pm: Risks to mega-IPOs: Holmes Three of the world’s most valuable private companies—SpaceX, Anthropic and OpenAI—are preparing to enter public markets in what could become one of the largest IPO waves in history.
“I’ve witnessed a lot of IPO cycles over my decadeslong career, and there are some risks,” U.S. Global Investors CEO Frank Holmes wrote earlier this week.
“(C)onsider that the companies bringing these IPOs to market, and the investment banks underwriting them, have every incentive to price them at the upper bound of what investors will pay. The runway for publicly-funded growth has to justify the valuation already baked in the price.
“For SpaceX specifically, that means believing not just in Starlink’s subscriber trajectory—which is genuinely impressive—but also in technologies that don’t exist yet, such as orbital data centers and Mars colonization. I look forward to seeing Elon Musk execute on two these fronts, but for now, the timeline is up in the air.”
Read more of what Holmes has to say about these trillion-dollar IPOs here.
11:00am: SpaceX indicative price auction The indicative opening price of SpaceX is falling, but still well above the $135 issue price.
Trading may begin around 12:30pm ET, some are saying, or maybe earlier, as the auction to decide the opening price continues.
Shares were recently indicated to open at around $162.5 each.
First indications were for a price of $174, then $171, then $170, then $168.75 before a bigger drop.
Don't forget, index and tracker funds for Nasdaq, Russell and FTSE indices have a 15-day deadline to buy shares.
An extra nugget within the SpaceX story is that Elon Musk, who owns about 42% of SpaceX, now looks like he is going to become the first dollar trillionaire.
10am: Whipsaw open after new Trump post on 'dishonest' Iran US stocks opened higher but solid gains were immediately wiped out after confusion emerged about the purported Iran peace deal.
The Nasdaq has whipsawed down 0.5%, the S&P is down 0.2% and the Dow Jones is up 0.1%, having opened up around 0.6% higher in initial trades.
President Donald Trump posted on social media just minutes after the opening bell: "The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing."
He says Tehran's statement is "dishonourable" and "bears no relation to the truth" and that "they better get their act together, and FAST".
Oil prices have also spiked back to where they were at midnight, with Brent back up to $89 a barrel.
In other news, SpaceX shares have been indicated to open at $171 in their Nasdaq debut, up from the $135 IPO price. An auction will take place before investors can trade the shares on the open market.
8am: US stock futures rise Wall Street is heading for a firmer open on Friday, with futures ticking higher as investors weigh President Donald Trump’s sudden shift on Iran and turn attention to a blockbuster market debut.
Dow futures are up 0.6%, while those for the S&P 500 and the Nasdaq futures are up 0.5%, extending Thursday’s strong gains. That rally came after Trump said planned US military strikes on Iran were cancelled and suggested a peace deal could be close, with the Nasdaq jumping 2.5%, the Dow up 1.9% and the S&P 500 gaining 1.8% as risk appetite returned.
Today, though, geopolitics looks set to fade into the background. All eyes are on the long-awaited IPO of SpaceX (NASDAQ:SPCX), which is expected to dominate trading.
Interactive Investor’s Richard Hunter said markets had already been buoyed by easing Middle East tensions, but added: “For the US there is only one show in town today.”
He pointed to an unusual listing process, including a fixed $135 share price, unusually broad retail access and a heavily marketed offering. The IPO is set to raise around $75 billion, valuing the company at roughly $1.75 trillion.
There is also likely to be structural demand from index funds. The Nasdaq has adjusted its rules to allow fast-track inclusion, meaning tracker funds will be forced buyers once the stock enters the benchmark. Hunter said that will create “significant additional buying pressure” as investors assess how large a weighting SpaceX will carry from day one.
Meanwhile, other global markets have joined in on the rally on hopes that a peace deal between the US and Iran could be sealed this weekend.
In London, the FTSE 100 is off its early highs but is still 1.2% firmer. In Frankfurt, the DAX has gained 1.7%, while the Paris CAC 40 is up 1.9%.
In Asia, Tokyo's Nikkei 225 rose 2.8%, Hong Kong's gained 1.9%, and Shanghai's SSE Composite added 1.1%. Seoul's Kospi jumped 4.6% as foreign investors tucked into South Korean shares, including Samsung Electronics (KRX:005930) and SK Hynix, after a 35-day absence. Sydney's ASX 200 closed 2% higher.
US stock-index futures rose on Friday as traders moved back into risk assets, encouraged by hopes that a Middle East deal may ease the oil shock and by anticipation around SpaceX’s market debut.
The mood was still fragile, with Iran yet to give final approval to any agreement and investors alert to whether a record listing from Elon Musk’s space, satellite and AI group will absorb liquidity from other parts of the market.
Lower crude prices also helped push Federal Reserve rate-hike expectations further out, giving equities some relief after a volatile week shaped by geopolitics and stretched technology valuations.
1. Futures point to a stronger open
S&P 500 and Nasdaq-100 futures rose about 0.6% each, while Dow futures climbed 300 points, or 0.6%, pointing to a stronger open on Wall Street.
The move extended a global rebound after investors took Trump’s latest comments as a sign that the Middle East conflict may be close to a diplomatic turning point.
2. Oil retreat eases the inflation scare
Brent crude fell back below $90 a barrel after Trump said the US and Iran could sign a peace agreement as soon as this weekend, potentially reopening the Strait of Hormuz to shipping.
Tehran has said a final decision has not been made, leaving markets exposed to another reversal if talks stall.
Still, the drop in oil was enough to cool some inflation anxiety. Traders pushed expectations for the next Fed rate increase towards December, after earlier pricing had pointed to October.
That shift matters for equities because higher energy costs had threatened to keep price pressures elevated for longer.
3. SpaceX debut dominates the session
SpaceX is expected to begin trading on Nasdaq under the ticker SPCX after pricing shares at $135 each and raising $75 billion, the largest IPO on record.
The deal values the company at roughly $1.75 trillion to $1.77 trillion, putting it immediately among the most valuable listed US companies.
Investor demand has been intense, but the structure also raises questions.
4. Space trade gets a premarket lift
The listing has already pushed money into listed space names. Rocket Lab and Intuitive Machines each rose about 7% in premarket trading, while Planet Labs gained nearly 4%.
Funds with exposure to SpaceX also advanced. The enthusiasm reflects investor appetite for anything linked to rockets, satellites, defence technology and orbital data infrastructure.
5. Adobe slips after CFO exit
Adobe was the main large-cap drag in premarket trading, falling more than 5% after Chief Financial Officer Dan Durn’s planned departure overshadowed an improved annual forecast.
The reaction underlined how sensitive software investors remain to leadership changes and AI-related strategy questions.
Airlines moved the other way, with Alaska Air and Delta gaining as lower fuel prices improved the margin outlook.
US stocks opened higher on Friday as investors welcomed signs of a potential peace agreement between the United States and Iran.
Meanwhile, attention turned to the highly anticipated market debut of Elon Musk’s SpaceX, which is expected to become the largest public listing in Wall Street history.
The Dow Jones Industrial Average gained 257 points, or 0.51%, while the S&P 500 rose 0.12%.
The Nasdaq Composite on the other hand fell by 0.11%.
The gains followed reports that a draft memorandum of understanding between the US and Iran could pave the way for the reopening of the Strait of Hormuz and the lifting of US oil sanctions on Iran.
According to Iranian state media, the proposed agreement includes commitments from both sides, although Tehran indicated that a final decision has yet to be made.
A separate report from Bloomberg said a peace deal could be signed in Switzerland as early as Sunday.
The prospect of easing tensions in the Middle East helped boost investor confidence after weeks of market volatility driven by concerns over energy supplies and geopolitical risks.
The improving outlook for the Middle East lifted equity markets around the world.
Japan’s Nikkei 225 surged 2.8%, South Korea’s Kospi jumped 4.6%, and India’s Nifty 50 gained 1.3%. China’s Shanghai Composite advanced more than 1%, while Europe’s Stoxx 600 climbed 1.7%.
The positive mood followed Thursday’s strong rally on Wall Street, when major indexes gained after President Donald Trump said planned military strikes against Iran had been canceled and suggested a diplomatic agreement was nearing completion.
Oil prices also retreated after Trump's remarks.
Earlier concerns about a disruption to energy supplies had pushed crude prices sharply higher, contributing to inflation concerns and uncertainty about the Federal Reserve’s interest-rate outlook.
Following the decline in oil prices, traders pushed back expectations for the next Federal Reserve rate hike to December from October, according to CME Group's FedWatch tool.
Investor attention is also firmly focused on SpaceX, which is expected to begin trading on the Nasdaq under the ticker symbol SPCX.
The company has priced its shares at $135 each, implying a valuation of approximately $1.77 trillion.
SpaceX plans to sell 555.6 million shares, raising a record $75 billion in what would be the largest initial public offering ever completed in the United States.
Reuters reported that the offering was nearly four times oversubscribed despite only about 3% to 4% of the company’s shares being available for public trading.
Despite enthusiasm surrounding the IPO, some market participants have expressed concerns about the impact such a large offering could have on broader markets.
Some analysts believe recent weakness in technology stocks and last week's sharp decline in bitcoin may partly reflect investors raising cash ahead of the SpaceX debut.
Wells Fargo Investment Institute cautioned that large IPOs can create temporary market disruptions.
“History indicates that large IPO issuance occurs during periods of strong equity market sentiment, but the added equity supply can cause some indigestion. Household equity exposure already sits close to an all-time high, which suggests they may sell existing holdings to fund these new positions,” wrote global equity strategist Douglas Beath.
He added: “We remain favorable on the AI theme and the Information Technology sector but would not chase this run up.”
While investors assess the implications of the record-breaking IPO, markets appear to be ending the week on a stronger footing as hopes for a diplomatic breakthrough in the Middle East offset concerns about inflation, energy prices, and equity valuations.
U.S. stocks traded mixed this morning, with the Dow Jones index gaining over 150 points on Friday.
Following the market opening Friday, the Dow traded up 0.33% to 51,016.60 while the NASDAQ fell 0.13% to 25,777.22. The S&P 500 also rose, gaining, 0.11% to 7,402.62.
Leading and Lagging Sectors
Materials shares jumped by 1% on Friday.
In trading on Friday, consumer discretionary stocks fell by 0.7%.
Top Headline
Adobe announced that CFO and Executive VP Dan Durn will depart the company on June 15. Steve Day, Senior VP of Corporate Finance and CFO of Adobe's Customer Experience Orchestration business unit, will serve as interim CFO.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 2.9% to $85.13 while gold traded up 2.4% at $4,212.00.
Silver traded down 4.1% to $66.60 on Friday, while copper rose 1.4% to $6.3625.
Euro zone
European shares were higher today. The eurozone's STOXX 600 gained 1.1%, while Spain's IBEX 35 Index rose 1.7%. London's FTSE 100 rose 0.9%, Germany's DAX gained 1.1%, while France's CAC 40 rose 1.4%.
Asia Pacific Markets
Asian markets closed higher on Friday, with Japan's Nikkei 225 gaining 2.81%, Hong Kong's Hang Seng Index rising 1.93%, China's Shanghai Composite rising 1.12% and India's BSE Sensex climbing 2.30%.
Economics
The Michigan consumer sentiment index will be released today.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Wall Street had one job Friday: watch Space Exploration Technologies (NASDAQ: SPCX) take off.
The Dow Jones Industrial Average (^DJI +0.70%) rose 0.4% by noon ET, while the S&P 500 (^GSPC +0.50%) added 0.1%. The Nasdaq Composite (^IXIC +0.31%) index dipped 0.1%, weighed down by some familiar names making room for the new kid on the block.
The indexes bounced around in the morning but never strayed far from flat. The real action was elsewhere. And even a new $2 trillion player rising 23% (as of this writing at 12:19 p.m. ET -- probably some other figure by the time you read this) wasn't able to lift a Nasdaq index dominated by titans in the $4 trillion club.
^IXIC data by YCharts
All eyes on SpaceX Friday's Wall Street feels a lot like rocket-launch days at Cape Canaveral. Everything stood still, awaiting the majestic launch of a massive spaceship. None of the top indexes moved more than 1.2% in the morning, and they all trended back toward breakeven around noon.
SpaceX, for its part, delivered the drama. The official launch price was $135 per share, but trading opened at $168. That's a 22% jump, maxing out at a $2.2 trillion market cap. Elon Musk's combined space exploration and AI business is worth more than Walmart (WMT +0.44%) and Berkshire Hathaway (BRKA +0.76%) (BRKB +0.71%) combined, roughly matching the gross domestic products of Canada or Brazil.
It's the largest public offering ever, and Friday's pop suggests investors wanted in even at that lofty price. And the SpaceX IPO shuffled how deep-pocketed investors allocate their funds today. Mega-caps Amazon (AMZN 1.24%) and Microsoft (MSFT +0.11%) are down modestly on above-average trading volume, slicing $55 billion and $21 billion off their market caps, respectively. I can't prove this thesis, but I expect a significant portion of these tech titan investments simply moved over to SpaceX.
SpaceX's successful debut bodes well for OpenAI and Anthropic, both of which are expected to go public later this year. If investors will pay $2 trillion for rockets and Starlink, they'll probably show up for chatbots and AI security systems, too.
Today's Change
(
19.17
%) $
25.88
Current Price
$
160.88
Iran deal: maybe, maybe not It took me this long to get into today's geopolitics, because the SpaceX launch seems to have dampened everything else. Again, none of the major indexes is making a big move, and their top components neither soared nor crashed, either.
But there's still plenty of news to share from the Persian Gulf. Oil prices have bounced around today, with the United States Oil Fund (USO 2.64%) currently down 2.1%. Some sources say that the Iranian conflict should end soon, though the Trump administration condemns Iran's recent drone strikes. Conflicting media reports make it difficult to guess what the final peace agreement will look like, or when it will be signed. But investors see hope in the ongoing talks, so oil prices are trending down.
Image source: Getty Images.
Friday was SpaceX day and the normally headline-minting market indexes were more of an afterthought. The rotation out of Microsoft and Amazon is worth watching. If SpaceX's gain is just recycled Magnificent Seven money, the net effect on portfolios is a wash. If it's fresh capital entering the market, that's a different story.
SpaceX just proved that investors will show up for a $1.77 trillion debut and bid it even higher. OpenAI and Anthropic are taking notes.
Anders Bylund has positions in Amazon and Walmart. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Microsoft, and Walmart. The Motley Fool has a disclosure policy.
US stocks closed higher on Friday as investors welcomed signs of progress toward a potential peace agreement between the United States and Iran, while SpaceX's blockbuster market debut added to positive sentiment across Wall Street.
The Dow Jones Industrial Average rose 353.51 points, or 0.7%, to close at 51,202.26.
The S&P 500 gained 0.5% to finish at 7,431.46, while the Nasdaq Composite added 0.31% to end at 25,888.84.
Investor optimism was supported by reports suggesting that negotiations between Washington and Tehran were moving closer to a resolution.
A senior US administration official said a draft proposal had been agreed upon by both sides, while Iranian state media reported that a draft memorandum of understanding included a US commitment to lift oil sanctions and an Iranian commitment to reopen the Strait of Hormuz.
Bloomberg reported that a peace deal could be signed in Switzerland as soon as Sunday.
Much of Friday's market focus centered on Elon Musk's SpaceX, which made its long-awaited debut on the Nasdaq under the ticker symbol SPCX.
The stock opened at $150 per share, above its initial public offering price of $135.
Shares surged more than 20% shortly after trading began and ultimately closed up 19% at $160.95.
The strong debut valued SpaceX at more than $2 trillion and cemented its position among the largest publicly traded companies in the United States.
Analysts noted that only about 3% to 4% of SpaceX shares are expected to be available for trading, contributing to intense investor demand.
Market sentiment also improved as investors assessed developments surrounding a possible end to the conflict between the United States and Iran.
"The reported progress in peace talks helped to lift sentiment," said Jake Dollarhide, chief executive officer of Longbow Asset Management.
"There's still hope for a peace deal. Trump called off the attacks ... Third parties are confirming a peace deal is happening."
Dollarhide added that easing geopolitical tensions could reduce concerns about inflation and interest rates by placing downward pressure on oil prices.
Oil prices remained lower on Friday, with West Texas Intermediate crude futures trading roughly 3% lower at around $84 per barrel.
Later in the session, Pakistan Prime Minister Shehbaz Sharif said that a “final, agreed upon text” of a deal had been reached, helping major indexes recover from earlier weakness.
Investors are now turning their attention toward next week's Federal Reserve policy meeting, which will be the first chaired by Kevin Warsh.
While technology stocks delivered mixed performances, several AI-related names remained in focus.
Advanced Micro Devices gained 4%, while Alphabet added 1%. Nvidia was little changed, while Broadcom, Amazon, Microsoft and Palantir Technologies finished lower.
Despite concerns earlier in the week about technology-sector weakness and fund outflows, Friday's gains reflected renewed investor confidence driven by both geopolitical developments and one of the largest public market debuts in history.
, /PRNewswire/ -- Monday, June 1, is the official start of the six-month Atlantic hurricane season. Florida Power & Light Company (FPL) prepares year-round by building a stronger, more storm-resilient electric grid to serve customers. And our crews are ready to respond if a storm should hit. We plan for this and urge our customers to make their emergency plans for the season as well.
What can you do to prepare for hurricane season? Here are some tips to consider, whether you are a longtime Floridian or new to the state:
Make an emergency plan and share it with your family. If you have a generator, read the instruction manual to get a complete understanding of how to operate it safely during a potential outage. Be sure to keep yourself and your tools at least 10 feet away from power lines and never trim vegetation near power lines yourself. Have a qualified line-clearing professional trim trees near your home. Check radios, flashlights and stock up on batteries to be prepared for potential power outages. Consider whether you will shelter in place at your home or evacuate, as well as where you would go and whether you need a separate plan for pets. Have a plan ready – including evacuation or backup generation – for any family members who rely on medically necessary devices that require electricity. Make safety a part of your plan: Stay far away from and do not touch any downed power lines or flooded and debris-laden areas that may be hiding downed power lines. Call 911 and 1-800-4-OUTAGE (1-800-468-8243) if you see downed power lines or damaged electrical equipment. Bookmark FPL.com, download the FPL Mobile App and save 1-800-4-OUTAGE (1-800-468-8243) to your cell phone to report and check the status of your restoration. How does FPL prepare for hurricane season? FPL strengthens the electric grid with undergrounding and hardening and enhances it with innovative designs and technologies. And our entire company participates in a week-long annual storm drill. Preparing the electric grid to be more storm-resilient includes:
Hardening the electric system with resilient designs – such as steel, concrete and reinforced wooden power poles. Approximately 97% of all transmission structures serving FPL customers throughout Florida are either steel or concrete. The transmission system is critical to delivering reliable electricity from FPL's power plants to communities throughout the state. Undergrounding power lines in neighborhoods strategically with the Storm Secure Underground Program, which targets areas based on reliability and power outage data to improve resiliency systemwide, while also improving efficiency during storm restoration. To date, about 2,000 miles of neighborhood power lines have been converted underground through FPL's Storm Secure Underground Program. Installing smart grid technology that helps customers avoid some outages altogether and enables FPL to restore power faster following hurricanes and severe weather. During the three landfalling hurricanes in 2024 – Debby, Helene and Milton – smart grid devices helped avoid approximately 824,000 customer outages. Maintaining trees and other vegetation around thousands of miles of FPL's power lines. FPL leverages "smart trimming technology," including Light Detection and Ranging (LiDAR) imagery, to help company arborists efficiently manage vegetation around electrical equipment, reducing a leading cause of outages during hurricanes and severe weather. FPL's storm-hardening investments help customers get their power back faster following hurricanes and severe weather, but no electric grid is 100% stormproof. That's why it's important to have your emergency plan in place before a storm, including how you will respond to potential power outages. A word from Scott Bores, FPL president and CEO: "Despite forecasts predicting a below-average hurricane season this year, we know all it takes is one landfalling hurricane to severely impact the lives of our customers — and we cannot afford to be complacent. At FPL, we stand ready to weather these storms and serve our customers, and we urge all Floridians to share this commitment by taking the time now to make their emergency plans."
Where can customers go for more hurricane preparedness information? For tips and advice on developing emergency plans, visit FPL.com/Storm. This site includes checklists, suggestions and resources for Floridians preparing their homes and/or businesses for hurricane season.
Please visit FPL Newsroom's Digital Library for video and images of FPL storm response, technology and more.
About Florida Power & Light Company
Florida Power & Light Company is America's largest electric utility, delivering reliable power to more than 6 million customer accounts — serving approximately 12 million people across Florida. By leveraging a diverse energy mix, including nuclear, natural gas, solar and battery storage, FPL operates one of the most fuel- and cost-efficient power generation fleets in the U.S. and has earned the ReliabilityOne® National Reliability Award for eight of the last 11 years. FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE), which is one of the largest electric power and energy infrastructure companies in North America and is a leading provider of electricity to American homes and businesses. NextEra Energy is also the parent company of NextEra Energy Resources, LLC, which, together with its affiliated entities, is advancing America's energy future with one of the largest and most diverse portfolios of power generation and infrastructure solutions. For more information about NextEra Energy companies, visit these websites:
www.NextEraEnergy.com www.FPL.com www.NextEraEnergyResources.com SOURCE Florida Power & Light Company
NextEra Energy (NEE - Free Report) closed the most recent trading day at $83.66, moving -3.85% from the previous trading session. This change lagged the S&P 500's 0.26% gain on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.
The stock of parent company of Florida Power & Light Co. has fallen by 10.25% in the past month, lagging the Utilities sector's loss of 2.55% and the S&P 500's gain of 6.32%.
The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is predicted to post an EPS of $1.13, indicating a 7.62% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.97 billion, indicating a 18.96% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.01 per share and a revenue of $31.87 billion, indicating changes of +8.09% and +16.27%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. NextEra Energy presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 21.7. This signifies a premium in comparison to the average Forward P/E of 18.01 for its industry.
One should further note that NEE currently holds a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NEE's industry had an average PEG ratio of 2.64 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways NEE has gained 5.3% YTD, beating the electric power utility industry's 4% rise.NEE plans nearly $94.2B of 2025-2030 investment, including $57.38B for FPL upgrades.NEE targets 76.6-107.6 GW of new renewables in 2026-2032 and has a backlog above 33 GW. Shares of NextEra Energy (NEE - Free Report) have gained 5.3% in the year to date period compared with the Zacks Utility - Electric Power industry’s rally of 3.9%. The company has also outperformed the Zacks Utilities sector’s return of 3.9%.
NextEra Energy’s share price has advanced on the strength of solid operational execution and a consistently growing customer base, which continues to support rising demand for its services. Additionally, easing interest rates are expected to lower financing costs, enhancing the outlook for this capital-intensive utility.
Price Performance (YTD Period)
Image Source: Zacks Investment Research
Another utility, The Southern Company (SO - Free Report) , has a well-chalked-out capital investment plan to support clean power generation and grid modernization to support load growth. In the year-to-date period, Southern Company gained 3.8%, underperforming its industry.
Should NextEra Energy be added to your portfolio purely on the back of price strength? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio.
What’s Driving NextEra Energy’s Consistent Stock Performance?NextEra Energy continues to invest aggressively to strengthen and expand its operations. The company expects to deploy nearly $94.2 billion between 2025 and 2030 to support infrastructure growth and enhance long-term value creation. Of this amount, approximately $57.38 billion is earmarked for Florida Power & Light (“FPL”) to fund new generation resources, transmission and distribution enhancements, and grid modernization initiatives, while about $36 billion will be invested in NextEra Energy Resources to further expand its clean-energy portfolio.
NextEra Energy Resources remains focused on building its renewable energy platform through sustained investments in clean-energy assets. The company projects the addition of approximately 76.6-107.6 GW of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. Leveraging operational excellence, economies of scale and strategically positioned projects, NextEra Energy continues to benefit from one of the lowest cost structures in the utility sector, supporting strong profitability and competitive positioning.
A robust Florida economy is creating favorable growth opportunities for NextEra Energy by driving rising electricity demand. The company is well-equipped to capitalize on this trend through ongoing investments in infrastructure expansion and grid modernization. Additionally, FPL maintains residential electricity rates that remain well below the national average, strengthening its ability to attract new customers and retain existing ones while supporting sustained growth.
NextEra Energy benefits from one of the lowest-cost operating models in the utility sector, backed by strong operational performance, renewable energy scale advantages and strategically located assets. These factors support healthy profit margins and strengthen the company's competitive standing.
Nearly 89% of NextEra Energy’s customers are residential, while commercial and industrial users account for the balance. The company’s scale, technological expertise and operational efficiency enable it to generate consistently strong returns. Additionally, NextEra Energy’s broad service territory and expanding renewable energy portfolio enhance its market position and provide a durable competitive advantage.
NextEra Energy’s Earnings Estimates Moving UpThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates an increase of 0.25% and 0.23%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Another utility, Duke Energy Corporation (DUK - Free Report) , is also making smart capital investments to expand its clean energy generation assets. DUK’s 2026 and 2027 earnings per share remained unchanged in the past 60 days.
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.09%.
Image Source: Zacks Investment Research
Duke Energy’s ROE is currently pegged at 9.73%, which is lower than its industry returns.
NextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 20.34X compared with the industry average of 15.29X.
Image Source: Zacks Investment Research
The Southern Company is currently trading at 16.16X, also a premium to its industry.
NextEra Energy Increases Shareholders ValueNextEra Energy has authorization in place to repurchase as many as 180 million shares over an unspecified duration. The company also aims to increase its dividend by nearly 10% annually through at least 2026, followed by approximately 6% yearly growth from the end of 2026 through 2028, pending board approval.
NEE’s current quarterly dividend is 62.32 cents per share, while the dividend yield of 2.95% remains higher than 1.43% of the S&P 500 composite.
Wrapping UpNextEra Energy continues to deliver stable performance, supported by increasing demand for clean energy across its service areas. To meet this growing demand, the company is consistently expanding its renewable energy portfolio. Additionally, Florida’s strong economic growth is creating favorable conditions for further customer and load expansion.
Given the positive trend in earnings estimate revisions and solid return on equity, investors may consider maintaining their positions in this Zacks Rank #3 (Hold) utility stock. However, with NEE currently trading at a premium valuation, prospective investors may be better served waiting for a more attractive entry point before initiating or adding to positions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) closed at $84.01 in the latest trading session, marking a -2.13% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.86%.
Heading into today, shares of the parent company of Florida Power & Light Co. had lost 7.8% over the past month, lagging the Utilities sector's loss of 4.28% and the S&P 500's gain of 1.92%.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. On that day, NextEra Energy is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 7.62%. In the meantime, our current consensus estimate forecasts the revenue to be $7.97 billion, indicating a 18.96% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.01 per share and a revenue of $31.87 billion, signifying shifts of +8.09% and +16.27%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 21.41. Its industry sports an average Forward P/E of 18.2, so one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 2.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.65 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
NextEra Energy (NEE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this parent company of Florida Power & Light Co. have returned -10.3%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Utility - Electric Power industry, which NextEra falls in, has lost 1.6%. 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 EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
NextEra is expected to post earnings of $1.13 per share for the current quarter, representing a year-over-year change of +7.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The consensus earnings estimate of $4.01 for the current fiscal year indicates a year-over-year change of +8.1%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.37 indicates a change of +8.9% from what NextEra is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, NextEra is rated Zacks Rank #3 (Hold).
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.
In the case of NextEra, the consensus sales estimate of $7.97 billion for the current quarter points to a year-over-year change of +19%. The $31.87 billion and $34.71 billion estimates for the current and next fiscal years indicate changes of +16.3% and +8.9%, respectively.
Last Reported Results and Surprise HistoryNextEra reported revenues of $6.7 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.09 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $7.21 billion, the reported revenues represent a surprise of -7.01%. The EPS surprise was +11.22%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
NextEra is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe 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 NextEra. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
New Mexico Renewable Energy Transmission Authority NextEra Energy Transmission's newest transmission line in New Mexico is projected to reduce residential electric bills by approximately $13 a month
, /PRNewswire/ -- NextEra Energy Transmission, LLC, a subsidiary of NextEra Energy, Inc. (NYSE: NEE) and New Mexico Renewable Energy Transmission Authority today announced the energization of a 137-mile, 345-kilovolt transmission line in New Mexico that will strengthen grid reliability and help power homes, businesses and industries across the region.
Why it matters: Delivered ahead of schedule, the Crossroads-Hobbs-Roadrunner Transmission Line connects substations across Roosevelt and Lea counties to meet rising electricity demand, increase access to low-cost energy and support local economic growth. The line is projected to reduce the typical residential electric bill in the area by about $13 per month.
Track record of success: It is the third consecutive transmission project NextEra Energy Transmission has completed on time and on budget for the Southwest Power Pool grid. This is the second of three transmission projects the New Mexico Renewable Energy Transmission Authority has facilitated for New Mexico's electric grid since 2021.
A word from Matt Valle, president of NextEra Energy Transmission: "At a time when America needs more electricity, needs it affordably, and needs it now, this project shows what's possible when transmission developers, strong collaboration, community engagement and disciplined execution come together. This is speed-to-power at its finest and the kind of infrastructure that will power communities well into the future."
A word from New Mexico Governor Michelle Lujan Grisham: "The Crossroads project demonstrates New Mexico's leadership in building the infrastructure that drives economic development and affordability for everyday New Mexicans. Together, we are building energy, transmission and jobs that will power our workforce and economy, reliably and affordably, for generations to come."
A word from New Mexico State Land Commissioner Stephanie Garcia Richard: "The Crossroads project is a great example of the power of collaboration. Working with NextEra and nonprofit partners, we are conserving a 40 square-mile habitat for the lesser prairie chicken while delivering much-needed electricity to keep the lights on in southern New Mexico. These efforts will ensure we are meeting the dual mandate of the land office pairing protections for the species with historic renewable revenue for New Mexico's school kids. This is a win-win for everybody and will only add to the unprecedented $15 billion the State Land Office has earned for public education during my time in office."
A word from Lynn Mostoller, Executive Director of the New Mexico Renewable Energy Transmission Authority: "RETA was founded to spur economic development in New Mexico by unlocking the renewable energy potential of New Mexico through transmission. There is no better example than the Crossroads project. We are proud to have co-developed this project and commend NextEra Energy Transmission Southwest for the remarkable accomplishment of building Crossroads from concept to completion in five years."
Collaboration delivers conservation results: The collaborative work of this project also resulted in approximately 40 square miles set aside for lesser prairie chicken habitat preservation in New Mexico.
About NextEra Energy Transmission
NextEra Energy Transmission, LLC, one of North America's leading competitive transmission companies. NextEra Energy Transmission has more than 3,200 miles of transmission lines in development and operation in 19 states and Canada and a strong track record of delivering complex projects that benefit communities, NextEra Energy Transmission is a subsidiary of NextEra Energy, Inc. (NYSE: NEE), the largest electric power and energy infrastructure company in North America and a leading provider of electricity to American homes and businesses. For more information about NextEra Energy Transmission, please visit https://www.nexteraenergytransmission.com/.
About RETA
RETA's role is to encourage and facilitate the development of new transmission and storage infrastructure needed to enable critical development of New Mexico's extensive renewable energy resources. RETA is committed to working with developers, utilities, state/local officials, tribes, military installations and the public to achieve a brighter future with renewable energy. For more information, visit https://nmreta.com.
SOURCE NextEra Energy Transmission; New Mexico Renewable Energy Transmission Authority
NextEra Energy Transmission's newest transmission line in New Mexico is projected to reduce residential electric bills by approximately $13 a month
, /PRNewswire/ -- NextEra Energy Transmission, LLC, a subsidiary of NextEra Energy, Inc. (NYSE: NEE) and New Mexico Renewable Energy Transmission Authority today announced the energization of a 137-mile, 345-kilovolt transmission line in New Mexico that will strengthen grid reliability and help power homes, businesses and industries across the region.
Why it matters: Delivered ahead of schedule, the Crossroads-Hobbs-Roadrunner Transmission Line connects substations across Roosevelt and Lea counties to meet rising electricity demand, increase access to low-cost energy and support local economic growth. The line is projected to reduce the typical residential electric bill in the area by about $13 per month.
Track record of success: It is the third consecutive transmission project NextEra Energy Transmission has completed on time and on budget for the Southwest Power Pool grid. This is the second of three transmission projects the New Mexico Renewable Energy Transmission Authority has facilitated for New Mexico's electric grid since 2021.
A word from Matt Valle, president of NextEra Energy Transmission: "At a time when America needs more electricity, needs it affordably, and needs it now, this project shows what's possible when transmission developers, strong collaboration, community engagement and disciplined execution come together. This is speed-to-power at its finest and the kind of infrastructure that will power communities well into the future."
A word from New Mexico Governor Michelle Lujan Grisham: "The Crossroads project demonstrates New Mexico's leadership in building the infrastructure that drives economic development and affordability for everyday New Mexicans. Together, we are building energy, transmission and jobs that will power our workforce and economy, reliably and affordably, for generations to come."
A word from New Mexico State Land Commissioner Stephanie Garcia Richard: "The Crossroads project is a great example of the power of collaboration. Working with NextEra and nonprofit partners, we are conserving a 40 square-mile habitat for the lesser prairie chicken while delivering much-needed electricity to keep the lights on in southern New Mexico. These efforts will ensure we are meeting the dual mandate of the land office pairing protections for the species with historic renewable revenue for New Mexico's school kids. This is a win-win for everybody and will only add to the unprecedented $15 billion the State Land Office has earned for public education during my time in office."
A word from Lynn Mostoller, Executive Director of the New Mexico Renewable Energy Transmission Authority: "RETA was founded to spur economic development in New Mexico by unlocking the renewable energy potential of New Mexico through transmission. There is no better example than the Crossroads project. We are proud to have co-developed this project and commend NextEra Energy Transmission Southwest for the remarkable accomplishment of building Crossroads from concept to completion in five years."
Collaboration delivers conservation results: The collaborative work of this project also resulted in approximately 40 square miles set aside for lesser prairie chicken habitat preservation in New Mexico.
About NextEra Energy Transmission
NextEra Energy Transmission, LLC, one of North America's leading competitive transmission companies. NextEra Energy Transmission has more than 3,200 miles of transmission lines in development and operation in 19 states and Canada and a strong track record of delivering complex projects that benefit communities, NextEra Energy Transmission is a subsidiary of NextEra Energy, Inc. (NYSE: NEE), the largest electric power and energy infrastructure company in North America and a leading provider of electricity to American homes and businesses. For more information about NextEra Energy Transmission, please visit https://www.nexteraenergytransmission.com/.
About RETA
RETA's role is to encourage and facilitate the development of new transmission and storage infrastructure needed to enable critical development of New Mexico's extensive renewable energy resources. RETA is committed to working with developers, utilities, state/local officials, tribes, military installations and the public to achieve a brighter future with renewable energy. For more information, visit https://nmreta.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/critical-new-power-line-boosts-new-mexicos-grid-reliability-economic-growth-and-access-to-affordable-energy-302797140.html
SOURCE NextEra Energy Transmission; New Mexico Renewable Energy Transmission Authority
NEW YORK, May 12, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company (“Clorox” or the “Company”) (NYSE: CLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook. Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period. In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company’s prior expectation at the low end of a 50 to 100 basis point decline range. During the Company’s earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization.
On this news, Clorox’s stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
As the market indexes hover near all-time highs, investors appear optimistic, as stocks tied to areas such as artificial intelligence (AI) continue moving higher.
Nonetheless, such moves may worry long-term investors. The Shiller price-to-earnings (P/E) ratio, which averages earnings over a 10-year period adjusted for inflation, is now at around 42. The only other time it reached that level was during the dot-com boom, and as many long-term investors know, that gave way to a dot-com bust.
That history has me concerned. Although I'm not giving up on the stock market, I'm making three moves that I think will protect me should the worst happen.
Image source: Getty Images.
1. Let winners keep winning Leaving my highfliers alone may seem counterintuitive. I own AMD (AMD +4.91%), whose P/E ratio is over 140 at recent prices, and Shopify (SHOP 1.99%), whose P/E ratio is pushing 100 even amid concerns that AI threatens the business models of many software companies.
However, I still believe in the long-term theses of these underlying businesses. With regard to AMD, the company's growth prospects appear to support investors' enthusiasm, as its revenue growth rate closely approximates the 35% annual target over the next three years. In Shopify's case, it has built a nearly comprehensive e-commerce ecosystem. Thus, it will probably take more than an AI application to disrupt that business.
Moreover, history shows that holding to such beliefs over the long term. Perhaps one of the better examples is Amazon (AMZN 1.24%). Although it's up by almost 279,000% since its 1997 IPO, it lost more than 90% of its value during the dot-com bust before its comeback, bringing massive returns that more than make up for any failed investments.
Although enduring those sell-offs can be difficult emotionally, history shows that it pays to keep the faith in a solid investment thesis.
2. Stay liquid Second, I'm keeping significant liquidity on hand. That includes cash and iShares Gold Trust (IAU +0.08%), a gold-tracking stock that I hold as an inflation hedge and can convert to cash quickly.
Here I'm following the example of Berkshire Hathaway (BRKA +0.76%) (BRKB +0.71%). As Warren Buffett was getting ready to retire as CEO, he built a record liquidity position now topping $397 billion, more than the company's current $329 billion in reported holdings.
Buffett spoke of the virtues of buying in down markets. In such times, holding a massive liquidity position may mean that Berkshire, now run by Greg Abel, is gearing up for such an opportunity.
Assuming a downturn occurs, investors will be able to buy bear market stocks at a significant discount. Ultimately, we have no way of knowing when the next bear market will arrive or how severe it will be. That doesn't mean one will find Amazon selling at a 90% discount again, but a sell-off should make more of the market's top businesses trade at attractive prices.
More importantly, investors should remember that every previous bear market eventually ended. That positions long-term investors to benefit because the bear market occurred, and investors should probably position themselves to reap such rewards.
3. Seek bargains, always Despite the high valuations, investors can find stocks to buy in this market. Many stocks don't move with the economy, so they can make great investments at the height of a bull market and could rise even as the overall market plunges.
For example, there's my contrarian take on Clorox (CLX 1.51%). I see it as a high-yield dividend stock with a cash return of around 5.6%, far above the 1.1% average for the S&P 500. It also has a history of annual payout increases, and its P/E ratio of 14 is less than half of the average 32 P/E ratio.
Today's Change
(
-1.51
%) $
-1.48
Current Price
$
96.82
Admittedly, no individual stock is risk-free, and Clorox -- whose revenue has grown at an annualized rate around 2% over the past decade -- is not for everyone. Nonetheless, it serves as a reminder that investors should always be on the lookout for a buying opportunity.
Investing in today's market environment The market is near record levels, and that leaves some investors wondering what to do. While history shows that bear markets happen eventually, we don't know how long the current bull market will continue.
However, an impending bear market is not a reason to give up on the stock market. As long as investors let winners win, hold some available cash, and always looks for opportunities, they can be in a position to win in the long term, no matter what happens next in the market.
LOS ANGELES, May 13, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Clorox Company (“Clorox” or “the Company”) (NYSE: CLX) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Clorox reported its Q3 2026 financial results on April 30, 2026. The Company revealed that its gross margin decreased for the quarter compared to the prior-year period. The Company also lowered its full-year gross margin outlook. The company further disclosed during its earnings call that its gross margin shortfalls were due to supply chain costs and delayed cost savings. Based on this news, shares of Clorox fell by more than 9.6% on May 1, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced that Chair and Chief Executive Officer Linda Rendle and Chief Financial Officer Luc Bellet will participate in a fireside chat at the dbAccess Global Consumer Conference on Wednesday, June 3, in Paris.
A live webcast of the presentation will begin at 12:00 p.m. CEST (6:00 a.m. ET and 3:00 a.m. PT) and can be accessed on the company's website. A replay of the webcast will be available following the event.
About The Clorox Company
The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, Pine-Sol® and Purell® as well as international brands such as Chux®, Clorinda® and Poett®. Visit thecloroxcompany.com to learn more.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company ("Clorox" or the "Company") (NYSE: CLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook. Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period. In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company's prior expectation at the low end of a 50 to 100 basis point decline range. During the Company's earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization.
On this news, Clorox's stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company (“Clorox” or the “Company”) (NYSE: CLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook. Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period. In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company’s prior expectation at the low end of a 50 to 100 basis point decline range. During the Company’s earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization.
On this news, Clorox’s stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
New collaboration brings a playful twist to everyday trash routines, turning a household chore into a moment of humor and personality.
, /PRNewswire/ -- Glad®, the nation's leading brand of trash bags and food wraps* is bringing Sesame Street's Oscar the Grouch to limited-edition Glad trash bag packaging, now available exclusively at Walmart. Featuring the iconic character who famously loves trash, the new packs add humor, personality, and a playful twist, bringing a bit of joy to an otherwise mundane task.
Glad® Features Sesame Street’s Oscar the Grouch in new Limited-Edition Packaging.
Glad® Features Sesame Street’s Oscar the Grouch in new Limited-Edition Packaging. Why Sesame Street's Oscar the Grouch?
Following Glad's December revival of its iconic "Don't Get Mad. Get Glad." campaign featuring Sesame Street's Oscar the Grouch in a remix of the classic "I Love Trash" song, the collaboration now evolves from screen to shelf. By bringing Sesame Street's Oscar the Grouch directly onto Glad packaging, the brand continues its playful messaging while reinforcing that trash doesn't have to feel like a chore.
"We're always looking for ways to bring a little more joy to everyday routines," said Ericka Santos, Associate Director of Marketing at Glad. "Bringing Sesame Street's Oscar the Grouch to our packaging is a fun way to turn a routine chore into something that can make people smile, while staying true to our 'Don't Get Mad. Get Glad.' campaign."
What's the Collaboration About?
This Walmart-exclusive launch introduces limited-edition Glad packaging featuring Sesame Street's Oscar the Grouch, blending nostalgia into the everyday trash aisle. By pairing Glad's trusted household essentials with one of pop culture's most lovable trash enthusiasts, the collaboration creates a lighthearted moment for families.
"Sesame Street has always found ways to bring humor and heart to everyday moments," said Gabriela Arenas, Senior Vice President, Global Licensing at Sesame Workshop, the global nonprofit behind Sesame Street. "Oscar is a natural fit when it comes to a playful and unique way to celebrate trash."
Beyond Walmart: There's More Where That Came From!
While Walmart marks the first phase of the rollout, the collaboration is set to expand to Target and Dollar General stores beginning in July. At Target, Glad will further build on the momentum through a back-to-school sweepstakes, extending the campaign into another key seasonal shopping moment.
Beyond delighting shoppers, the limited-edition packaging also provides retailers with fresh in-store merchandising opportunities, with incremental displays already secured across major retailers.
Wait, Haven't Glad and Sesame Street's Oscar the Grouch Teamed Up Before?
If this collaboration feels familiar, that's because it builds on Glad's December 2025 campaign, where Sesame Street's Oscar the Grouch was featured in the relaunch of "Don't Get Mad. Get Glad." through a Broadway-inspired musical number celebrating trash. The new packaging program marks the next chapter in that collaboration, bringing the same humor and personality directly into consumers' homes.
Where to Find It
Glad ForceFlex with Gain limited-edition Sesame Street's Oscar the Grouch packs are available now exclusively at Walmart, with Target and Dollar General launches beginning in July.
About Glad
The Glad Products Company, the nation's leading household waste solutions company, specializes in kitchen and outdoor trash bags as well as food protection products. By providing innovative and trusted solutions, Glad brings unquestioned dependability to an unpredictable world. Glad is a member of The Clorox Company (NYSE: CLX) family of brands. For more information, go to Glad.com. CLX-B.
About Sesame Workshop
Sesame Workshop is the global nonprofit behind Sesame Street and so much more. For over 50 years, we have worked at the intersection of education, media, and research, creating joyful experiences that enrich minds and expand hearts, all in service of empowering each generation to build a better world. Our beloved characters, iconic shows, outreach in communities, and more bring playful early learning to families in more than 190 countries and advance our mission to help children everywhere grow smarter, stronger, and kinder. Learn more at www.sesame.org and follow Sesame Workshop on Instagram, TikTok, Facebook, and X.
*based on Circana, U.S. multi‑outlet dollar sales data for Trash Disposal and Food Wraps, 52 weeks ending April 26, 2026
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company ("Clorox" or the "Company") (NYSE: CLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook. Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period. In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company's prior expectation at the low end of a 50 to 100 basis point decline range. During the Company's earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization.
On this news, Clorox's stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Are you seeking stability or value in the household goods market? Comparing Procter & Gamble (PG +0.86%) and Clorox (CLX 1.51%) reveals two distinct paths for conservative investors today.
Procter & Gamble is a global behemoth with a massive portfolio of diverse household brands, while Clorox focuses on specialized cleaning and wellness products with a smaller footprint. Both are defensive stalwarts, yet their scale and balance sheet health vary significantly.
The case for Procter & GambleProcter & Gamble operates through ten distinct categories, including grooming, health care, and beauty. Its products reach consumers in over 180 countries, making it one of the largest consumer staples companies by market cap. While its global reach is wide, the company depends heavily on Walmart for approximately 16% of its sales. Customer concentration like this adds a layer of risk to the business, as any change in shelf space or pricing terms could impact results.
In its 2025 fiscal year, ended June 30, revenue reached $84.3 billion, representing a slight growth of 0.3% compared to the prior year. Net income for the period was $15.7 billion, yielding a net margin of 19%. This margin, which measures the percentage of revenue remaining after all expenses are paid, indicates how much profit is generated from each dollar of sales.
As of the June 2025 balance sheet, the debt-to-equity ratio was 0.7x. This metric compares total debt to shareholder equity, indicating how much of the company is funded by lenders versus owners. The current ratio, which measures the ability to pay short-term debts with liquid assets, was 0.7x. Free cash flow for the year was $14 billion, representing cash from operations minus money spent on capital expenditures.
The case for CloroxThe Clorox Company maintains a portfolio focused on cleaning, wellness, and household convenience. Its brands, such as Pine-Sol, Glad, and Burt's Bees, are staples in many homes and professional settings. Like its larger peer, the company faces significant customer concentration, with Walmart accounting for nearly 27% of fiscal 2025 sales. Such heavy reliance on a single retailer can make the business vulnerable to changes in purchasing patterns or retail floor-space allocations.
During its 2025 fiscal year, which also ended June 30, revenue was $7.1 billion, reflecting a modest growth of about 0.2% over the previous year. Net income for the fiscal period reached $810.0 million, compared to just $280.0 million in the prior year. This performance led to a net margin of 11.4%, which measures how efficiently the firm turns revenue into profit after taxes and costs.
Based on its June 2025 financial report, the debt-to-equity ratio was 9.0x. This indicates a high level of debt relative to shareholder equity, which is a common point of analysis for capital-intensive companies. The current ratio stood at 0.8x, a metric that helps investors assess short-term liquidity and the ability to cover immediate bills. Free cash flow for the year was $761.0 million, calculated as operating cash flow minus expenditures on physical assets.
Risk profile comparisonProcter & Gamble faces intense competition from global rivals such as Unilever. These competitors often battle for shelf space and consumer loyalty through aggressive marketing and pricing. The company also deals with geopolitical instability and trade controls, which can disrupt global manufacturing networks. Furthermore, cyber-attacks or IT failures pose a constant threat to its complex international operations.
Clorox deals with heavy competition from both name brands and lower-priced private label products. Larger competitors such as Colgate-Palmolive may have more financial resources to capture market share. The company is also exposed to supply chain volatility, particularly regarding the cost of raw materials like resin and energy. Geopolitical conflicts and inflation also threaten to squeeze profitability if higher costs cannot be passed to consumers.
Valuation comparisonClorox currently trades at a lower P/S ratio relative to both its larger rival and its expected Forward P/E.
MetricThe Procter & GambleThe CloroxSector BenchmarkForward P/E20.8x17.4x25.5xP/S ratio4.0x1.6xSector benchmark uses the SPDR XLP sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Choosing to invest in Procter & Gamble or Clorox is a good move to add defensive stocks to a portfolio. However, neither is a high-growth company, so investors would be buying primarily for their dividend income.
From that perspective, Procter & Gamble offers a robust dividend yield of 2.9% as of May 28. Clorox provides a far higher dividend yield of 5.1%, which makes it appear to be the better buy. But there’s an important consideration here.
The ability to pay dividends is determined based on available free cash flow (FCF). Procter & Gamble generates robust FCF. In its latest fiscal quarter, ended March 31, the company produced adjusted FCF of $3.0 billion, an increase over the prior year’s $2.8 billion. Rising FCF is a good sign that Procter & Gamble can not only maintain its dividend, but afford to raise it as well.
Clorox generates much lower FCF, but it grew FCF to $761 million in fiscal year 2025 compared to $483 million in 2024. The company is also undertaking initiatives to reduce its expenditures and streamline operations, which point to the potential for further improvements in FCF.
But given Procter & Gamble‘s far greater FCF amount, it would be my choice to invest in over Clorox, even though the latter has the higher dividend yield.
Chair and CEO Linda Rendle to Step Down Following Appointment of New CEO
, /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced that Chair and Chief Executive Officer Linda Rendle has asked the Board of Directors to initiate a CEO search process, as she has made the decision to step down for health reasons. Rendle will remain Chair and CEO while the search is conducted and until the new CEO is appointed. Rendle will also serve in an advisory role for a period following the appointment to drive business performance and a smooth leadership transition. The search will be comprehensive, led by an independent CEO search committee of the Board with the support of a leading executive search firm.
"Linda has been an exceptional CEO for Clorox, steering the company through a period of significant transformation and volatility," said Matthew J. Shattock, lead independent director of The Clorox Company Board of Directors. "She has helped make the company stronger, more agile and better positioned for the future. Linda has modernized our digital and operational foundation, sharpened the portfolio toward faster-growing health and hygiene categories, and accelerated innovation while continuing to invest in our brands, people and growth. While we are saddened by her decision, we are grateful that she will remain in place during the search and as an advisor for a period after the new CEO is appointed. We fully respect and support her personal decision and are confident that the process we are putting in place will result in a strong leader who is well positioned to lead Clorox into its next chapter of growth and value creation."
"Serving as CEO of Clorox for the past six years—and being part of this special company for more than two decades—has truly been the privilege of my career," said Rendle. "This was an incredibly difficult and deeply personal decision but after thoughtful reflection, I believe now is the right time to begin working toward a leadership transition so I can focus more fully on my health and family once a successor is appointed.
I remain fully committed to leading Clorox in the coming months through this transition and ensuring a smooth handoff to the company's next leader. I'm proud of what our team has accomplished during one of the most consequential periods in the company's history. Our experienced management team remains fully focused on strengthening execution, advancing innovation and delivering superior customer value as we continue to restore profitable growth and market share. While the operating environment remains challenging, I'm confident the actions we are executing today are positioning Clorox for long-term success."
Rendle posted a personal message regarding her decision on the company's website.
Rendle and Chief Financial Officer Luc Bellet will participate in a fireside chat at the dbAccess Global Consumer Conference on Wednesday, June 3, in Paris at 12pm CEST. The webcast can be accessed here.
About The Clorox Company
The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, Pine-Sol® and Purell® as well as international brands such as Chux®, Clorinda® and Poett®. Visit thecloroxcompany.com to learn more.
Clorox Healthcare launches two new innovative products designed to help close a critical compliance gap in daily disinfection: Clorox Healthcare Quat Alcohol Disinfecting Wipes, featuring a 1-minute contact time and 40% less alcohol*, and Clorox Healthcare HyperOxi Disinfecting Wipes a bleach-free sporicidal wipe powered by Quanticare Technology that is easy to use and gentle on surfaces.
Clorox Healthcare unveils an expanded healthcare portfolio designed to advance infection prevention with a quat alcohol-based daily disinfecting wipe and a bleach-free sporicidal disinfecting wipe. Wipes innovations help address emerging pathogen threats, burdens and support compliance in fast-paced healthcare environments where contact time protocols can be difficult to maintain. New products include Clorox Healthcare Quat Alcohol Disinfecting Wipes and Clorox Healthcare HyperOxi Disinfecting Wipes. , /PRNewswire/ -- Clorox Healthcare today announced two new innovative products designed to address critical challenges in infection prevention: Clorox Healthcare Quat Alcohol Disinfecting Wipes and Clorox Healthcare HyperOxi Disinfecting Wipes. These new wipes are designed to address critical needs in healthcare environments, helping improve workflow efficiency and compliance.
Clorox Healthcare Quat Alcohol Disinfecting Wipes
Clorox Healthcare HyperOxi Disinfecting Wipes New Clorox Healthcare Quat Alcohol Disinfecting Wipes Address Infection Prevention Challenges
The innovations come at a time of rapid change in infection prevention, as facilities face staffing pressures, escalating microbial threats—like C. auris—and increasing operational demands. Most existing quat alcohol wipes have contact times of two minutes or longer and contain high levels of alcohol, creating a compliance challenge: either staff cannot keep surfaces wet for the required contact time, or they must re-wipe surfaces to do so, resulting in added time and labor costs.
Clorox Healthcare Quat Alcohol Disinfecting Wipes are formulated with 40% less alcohol* to help keep surfaces wet for the full contact time and support compliant and efficient workflows. The patent-pending, triple-active formula gives healthcare facilities a new daily disinfecting option that delivers fast efficacy and built-in compliance.
Expanding Clorox Healthcare's Sporicidal Portfolio with a Bleach-Free Alternative
While Clorox has provided trusted, bleach-based solutions to healthcare and commercial facilities for more than 100 years, it is now introducing its first-ever bleach-free sporicidal wipes with Clorox Healthcare HyperOxi Disinfecting Wipes powered by Quanticare Technology. The non-bleach formula is designed to deliver broad-spectrum efficacy, eliminating C. difficile spores in 4 minutes and other pathogens—including TB, C. auris, and Norovirus—in 1 minute or less, while offering broad surface compatibility and a comfortable user experience.
Offering a non-bleach scent and minimal surface residue, the ready-to-use Clorox Healthcare HyperOxi Disinfecting Wipes provide sporicidal efficacy, without tradeoffs.
Expanded Portfolio Designed to Meet All Healthcare Disinfection Needs
Together, the introduction of Clorox Healthcare Quat Alcohol Disinfecting Wipes and Clorox Healthcare HyperOxi Disinfecting Wipes reflects Clorox Healthcare's commitment to developing cleaning and disinfecting solutions to meet the broad range of healthcare disinfection needs and solve real-world challenges. This expanded portfolio of ready-to-use wipes and sprays helps infection prevention and environmental services teams disinfect with greater confidence. Paired with Purell hand hygiene solutions, healthcare facilities gain access to a trusted portfolio of products, services and education across the infection prevention category to help improve patient safety.
Industry Leadership Perspective
"Infection prevention teams are under increasing pressure to do more with less and disinfection solutions must be designed for the realities of today's healthcare environments," said Alec Frisch, General Manager, CloroxPro. "With Clorox Healthcare Quat Alcohol Disinfecting Wipes and Clorox Healthcare HyperOxi Disinfecting Wipes, we're delivering innovations designed for real-world compliance—helping teams meet required contact times without added steps or slowdowns, while providing options that make sporicidal disinfection more comfortable for everyday use."
Availability
The new Clorox Healthcare Quat Alcohol Disinfecting Wipes and Clorox Healthcare HyperOxi Disinfecting Wipes will be available in small and large wipe sizes later this year through major healthcare distributors.
Pending full regulatory approvals. Contact your Clorox Healthcare representative for current availability information.
*vs. PDI Super-Sani Cloth Wipes
About Clorox Healthcare
Building on a century-long legacy in cleaning and disinfecting, Clorox Healthcare continues to advance infection prevention by offering a wide range of innovative products to help stop the spread of infection in healthcare facilities. Clorox Healthcare is committed to delivering trusted solutions that support the evolving needs of the healthcare community. For more information, visit www.CloroxHealthcare.com and follow CloroxPro on LinkedIn.
About Clorox Purell
Clorox Purell, formerly GOJO, is the leading global producer of skin health and hygiene solutions. As the inventors of PURELL Hand Sanitizer, Clorox Purell is committed to bringing innovative hygiene products, smart dispensing solutions and compliance-building programs that help improve the well-being of patients and healthcare workers. Its scale and reach expanded in 2026, when the enterprise joined The Clorox Company (NYSE: CLX). Clorox Purell is headquartered in Akron, Ohio and manufactures products in Northeast Ohio. For more information, visit www.gojo.com and follow Clorox Purell on LinkedIn.
About The Clorox Company
The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita, Burt's Bees, Clorox, Fresh Step, Glad, Hidden Valley, Kingsford, Liquid-Plumr, Pine-Sol and now Purell as well as international brands such as Chux, Clorinda and Poett. Visit thecloroxcompany.com to learn more.
Clorox managed to keep its sales flat YoY and improve its EPS slightly, despite contracting gross margins, due to elevated energy prices. Based on a dividend discount model, assuming 2% growth in perpetuity and a 7.7% required rate of return, the upside from the current price levels seems to be limited. For these reasons, I upgrade CLX to hold.
Key Takeaways Fastly's security revenues rose 47% YoY to $38.8M, hitting 22% of total revenues in Q1. Next-Gen WAF led, but DDoS Protection, Bot Management and API Discovery gained traction with new customers. Seven-figure security deals and smaller wins supported growth as AI bot traffic and shadow API risks rose. Fastly, Inc. (FSLY - Free Report) delivered a strong first-quarter 2026 performance in its security business, with security revenues increasing 47% year over year to $38.8 million. Security accounted for 22% of total revenues in the quarter, reaching record levels for the company. The segment also grew 9% sequentially, marking the fourth straight quarter of accelerating security revenue growth.
Fastly’s security momentum is becoming stronger. Its Next-Gen WAF remained a core driver, but newer products also gained traction. These include DDoS Protection, Bot Management, and API Discovery and Inventory. Among instances of security products sold to new customers in the quarter, almost half came from these newer offerings. This indicates that Fastly’s security portfolio is expanding beyond one flagship product and gaining relevance across a wider set of customer needs.
Customer activity also supported the security growth story. Fastly closed multiple seven-figure deals that included security, while smaller wins also contributed. This suggests the quarter’s growth was not associated with just one isolated transaction.
AI-related traffic and security risks are also adding to the relevance of Fastly’s tools. ContentGuard was added by a long-standing media customer facing daily malicious AI bot traffic, while API security tools were positioned to help address shadow API risks as AI speeds up code delivery.
Fastly’s security business is becoming a more meaningful part of the company’s revenue mix. With stronger adoption across both established and newer security products, the segment’s momentum reflects improving product depth, broader customer engagement and a clearer role for security within Fastly’s platform strategy.
NET and AKAM Benefit From Rising Security and AI DemandCloudflare, Inc. (NET - Free Report) reported fourth-quarter 2025 revenues of $614.5 million, up nearly 34% year over year, while full-year revenues increased about 30% to $2.17 billion. Management highlighted strong demand related to AI, enterprise security and connectivity workloads. Cloudflare also noted that large customer revenues grew 42% year over year and accounted for 73% of total revenues. NET continues to see traction across its Zero Trust, application security and Cloudflare Workers offerings.
Akamai Technologies, Inc. (AKAM - Free Report) also reported steady security momentum in its latest quarter. Akamai Technologies’ fourth-quarter 2025 revenues increased 7% year over year to $1,095 million. Akamai Technologies’ security revenues rose 11% year over year to $592 million, while Guardicore Segmentation and API Security revenues jumped 36% to $90 million. These figures show that AKAM continues to see demand for cybersecurity, API protection and segmentation offerings.
FSLY Stock Price Performance, Valuation & EstimatesShares of Fastly have surged a whopping 314.3% over the past year against the industry’s decline of 8%.
FSLY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, FSLY trades at a forward price-to-sales ratio of 6.69, higher than the industry’s average of 3.8.
FSLY Valuation Compared to Industry
Image Source: Zacks Investment Research
Fastly (FSLY 1.75%), a real-time content delivery network provider, closed Thursday at $19.50, down 38.23%. The stock sank after record Q1 results and raised 2026 guidance failed to ease concerns about slowing core networking services growth. Trading volume reached 47.1 million shares, about 208% above its three-month average of 15.3 million shares. Fastly IPO'd in 2019 and has fallen 19% since going public.
How the markets moved todayThe S&P 500 slipped 0.38% to 7,337, while the Nasdaq Composite eased 0.13% to finish at 25,806. Industry peers Akamai Technologies closed at $116.69 (-4.34%) and Cloudflare ended at $257.05 (+3.40%), underscoring mixed reactions to recent earnings.
What this means for investorsFastly grew sales by 20% in Q1 and delivered profitability on an adjusted EPS basis, beating Wall Street’s estimates. However, while it raised 2026 guidance to include 15% sales growth, the market sold the stock off on the prospect that sales growth would decelerate, and Fastly’s core Network Services segment grew revenue by only 11%.
While this deceleration was disappointing, management noted this 11% growth was still double the market’s rate. Meanwhile, its nascent Security and Compute units -- which account for roughly one-fourth of Fastly’s sales now -- delivered revenue growth of 67% and 47%, respectively.
However, trading at 71 times forward earnings after its stock tripled over the last year, I’m just going to watch Fastly for now, especially as management believes its infrastructure capex (as a percentage of revenue) will more than double in 2026.
Josh Kohn-Lindquist has positions in Cloudflare. The Motley Fool has positions in and recommends Cloudflare and Fastly. The Motley Fool recommends Akamai Technologies. The Motley Fool has a disclosure policy.
Shares of Fastly (NYSE:FSLY) just earned a strong endorsement from Raymond James, which upgraded the edge cloud platform to Outperform from Market Perform with a $23 price target. The call lands in the wake of a 38% one-day decline that followed an in-line quarter, making this a clearly contrarian view. Raymond James argues the market overreacted and that an AI-driven traffic inflection is the dominant longer-term theme.
The split with peers is the story. Piper Sandler reiterated a Hold on Fastly stock the same week, framing the quarter as a thesis crack rather than a setup. For broader context on how analysts are positioning around AI infrastructure names, see our recent coverage of AI infrastructure analyst upgrades.
Ticker Company Firm Action Old Rating New Rating Old Target New Target FSLY Fastly Raymond James Upgrade Market Perform Outperform n/a $23 The Analyst’s Case Raymond James believes Fastly has reached an “inflection” in operational performance, with rising demand for its network capacity and security products. The firm sees AI-driven traffic increases continuing to benefit delivery networks with more advanced capabilities.
Crucially, the analyst points to structure. Fastly’s network runs through major interconnected data centers positioned to capture incremental AI and inference-related traffic as those workloads scale, an architectural moat the firm is willing to underwrite at $23.
Company Snapshot Fastly operates an edge cloud platform spanning Network Services, Security, and Compute & Observability. In Q1 2026, revenue grew 20% year over year to $173.02 million, with Security up 47% and Compute & Observability up 67%.
CEO Kip Compton stated that Fastly delivered “record revenue, gross margin, and RPO” in the quarter. Management raised full-year guidance to $710 million to $725 million in revenue, with non-GAAP EPS of $0.27 to $0.33.
Why the Move Matters Now Fastly stock closed at $19.50 on May 7 after the post-earnings selloff, well below its 52-week high of $34.82. The Raymond James $23 target sits just above the $22.75 consensus analyst target, reframing the post-earnings drawdown as opportunity rather than damage.
The bull case rests on CDN economics shifting in an AI-heavy traffic environment. Inference traffic is more compute-intensive than static content delivery, which favors Fastly’s edge compute and security stack. RPO of $369 million grew 63% year over year, and net retention ticked up to 113%.
What It Means for Your Portfolio For prudent investors, Fastly stock now sits at the center of a genuine analyst debate. The bear case from Piper Sandler centers on volume softness and pricing pressure in core delivery, alongside competition from hyperscaler-affiliated CDN alternatives. Customer concentration also remains elevated, with the top 10 customers representing 34% of revenue.
The bull case is the one Raymond James is buying: durable growth from AI traffic, edge compute monetization, and security cross-sell. With shares up 98% year to date despite the recent drop, position sizing matters.
When two reputable firms split this sharply on the same name in the same week, the narrative is in flux. Investors comfortable with usage-based volatility may find the risk/reward attractive at current levels, while more conservative readers might wait for the next quarter to settle the inflection question.
Key Takeaways FSLY posted Q1 2026 non-GAAP EPS of 13 on $173M revenue, up 19.8% year over year.FSLY security revenues rose 47% to $38.8M; RPO jumped 63% to $369M, signaling stronger commitments. FSLY lifted 2026 guidance to $710-$725M revenue, citing AI tailwinds in security & compute. Fastly (FSLY - Free Report) reported first-quarter 2026 non-GAAP earnings of 13 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 5 cents per share in the year-ago quarter.
Revenues were $173 million, up 19.8% year over year, and edged past the consensus mark by 0.76%. The quarterly results reflected strong execution across the platform, highlighted by accelerating security momentum and rising compute demand tied to increasingly complex edge workloads. Remaining performance obligations (RPO) ended the quarter at $369 million, up 63% year over year, pointing to improved upfront customer commitments.
FSLY Revenue Mix Highlights Platform BreadthFSLY’s first-quarter growth leaned on continued share gains in core delivery, alongside faster expansion in newer products. Network Services revenues rose 11% year over year to $126.2 million, supported by performance-driven wins in use cases where speed and reliability matter.
Security remained the standout, growing 47% year over year to $38.8 million and reaching record levels in both dollars and mix. The “Other” category, which includes Compute and Observability, jumped 67% year over year to $8 million, reflecting a meaningful step-up in compute adoption versus the year-ago quarter.
Fastly Expands Customer Base and CommitmentsFastly ended the quarter with 634 large customers, defined as those producing more than $100,000 in annualized revenues in the quarter. Management noted it is placing greater emphasis on large customer acquisition as a more meaningful gauge of go-to-market progress.
Retention also improved, with trailing 12-month net retention rising to 113% from 110% in the prior quarter. The company highlighted that retention gains are extending beyond the very largest accounts into a broader range of customers, aligning with a platform approach that supports upsell and cross-sell across network, security and compute.
FSLY Lifts Margins on Efficiency and Accounting ShiftProfitability improved sharply in the quarter as the company continued to emphasize traffic engineering and platform efficiency. Non-GAAP gross margin reached 65.1%, up from 57.3% reported in the year-ago quarter.
Operating expenses increased 15% year over year to $132.1 million.
FSLY’s non-GAAP operating income came in at $19.1 million against an operating loss of $5.85 million.
Fastly Generates Cash Despite Higher Infrastructure SpendFSLY ended the quarter with approximately $330 million in cash, cash equivalents and investments. Management highlighted a $31 million sequential decline in cash, primarily driven by the retirement of $39 million of long-term debt that came due in March 2026.
Fastly produced $28.9 million of cash flow from operations in the reported quarter, up from $17.3 million in the year-ago period.
Free cash flow was $4.1 million, though down from $8.2 million a year earlier as infrastructure spending increased year over year.
FSLY Raises 2026 Outlook, Sees AI as TailwindFor the second quarter of 2026, FSLY guided revenues to $170-$176 million and non-GAAP earnings to 5-8 cents per share.
The company also raised 2026 revenue guidance to $710-$725 million and expects non-GAAP earnings of 27-33 cents per share, reflecting improved profitability expectations as the business scales.
Management framed AI-driven demand as a meaningful tailwind, citing stronger interest in security and compute as customers work to secure and scale automated and agent-driven traffic.
Fastly is seeing agentic-related volume tailwinds in network services and more pronounced security attach as customers protect AI workloads. The company also noted that pricing dynamics in Network Services remain similar to recent quarters as customers unlock volume discounts under existing contracts.
Zacks Rank & Upcoming Earnings to ConsiderFastly currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Cisco Systems (CSCO - Free Report) , Applied Materials (AMAT - Free Report) and Keysight Technologies (KEYS - Free Report) . Keysight Technologies sports a Zacks Rank #1 (Strong Buy) at present, while Cisco and Applied Materials carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco, Applied Materials and Keysight Technologies are set to report their respective quarterly results on May 13, May 14 and May 19. Year to date, shares of Cisco, Applied Materials and Keysight Technologies have returned 19.7%, 59.9% and 74.8%, respectively.
Fastly (FSLY) is rated a buy, with a fair value estimate of $30 versus a current price of $20.50, driven by accelerating growth and robust fundamentals. FSLY posted Q1 2026 revenue of $173M (+20% YoY), security revenue up 47% YoY, net retention rate at 113%, and RPO up 63% YoY to $369M. Management raised 2026 revenue guidance to $710–$725M and EPS guidance by 15%, signaling fundamental earnings model reset and durable growth trajectory.
Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketBeat
MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
NASDAQ:MKTX
Read Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of Stock
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Fastly (FSLY - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Fastly basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Fastly, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for FastlyFor the fiscal year ending December 2026, this cloud software developer is expected to earn $0.29 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Fastly. Over the past three months, the Zacks Consensus Estimate for the company has increased 24.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Fastly to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Fastly posted record Q1 revenues of $173M, up 20% year over year, extending late-2025 acceleration.Security revenues climbed 47% to $38.8M, while compute-driven Other revenues surged 67% to $8M.LTM net retention rose to 113%, and remaining performance obligations hit a record $369M, up 63%. Fastly, Inc. (FSLY - Free Report) entered 2026 with strong momentum, as first-quarter revenues increased 20% year over year to a record $173 million. Rising demand across edge cloud, security and compute services helped the company sustain one of its strongest growth phases in recent years.
The performance followed 23% revenue growth in the fourth quarter of 2025, showing that Fastly has largely held on to the acceleration seen over the past several quarters. Quarterly growth had earlier remained in single digits through much of 2024 before rebounding sharply in late 2025, making the latest 20% increase notable.
The composition of growth remains important. Network Services revenues, still the company’s largest business, increased 11% year over year to $126.2 million. Security revenues climbed 47% to $38.8 million and represented 22% of total revenues, while Other revenues, primarily driven by compute products, surged 67% to $8 million. This mix shows that Fastly’s growth is being supported by both its core delivery business and faster-growing newer categories.
Fastly also benefited from expansion within its customer base. LTM net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader mix of customers. The company also reported record remaining performance obligations of $369 million, up 63% year over year, indicating stronger contracted revenue visibility.
Even so, the pace may gradually normalize from recent highs. Second-quarter 2026 revenue guidance of $170-$176 million implies 16% year-over-year growth at the midpoint, while full-year 2026 guidance of $710-$725 million points to a 15% increase. This indicates that while growth is expected to cool from the recent peak, Fastly still sees a mid-teens revenue trajectory for 2026.
NET & AKAM Benefit From AI-Driven Revenue MomentumCloudflare, Inc. (NET - Free Report) posted first-quarter 2026 revenues of $639.8 million, up 34% year over year, driven by strong adoption of its AI, developer and security offerings. NET also highlighted accelerating enterprise traction, with large customer revenues rising 38% year over year. Cloudflare further noted that AI-driven and agentic workloads are becoming a major growth catalyst, with management calling AI the “biggest tailwind” in the company’s history.
Akamai Technologies, Inc. (AKAM - Free Report) generated first-quarter 2026 revenues of $1,074 million, reflecting 6% year-over-year growth. AKAM continued benefiting from strong momentum in cloud infrastructure and security services, with cloud infrastructure services revenues jumping 40% year over year. Akamai Technologies also emphasized growing AI-related demand and signed a landmark $1.8 billion cloud infrastructure deal during the quarter.
FSLY Stock Price Performance, Valuation & EstimatesShares of Fastly have surged 139.7% over the past year against the industry’s decline of 14.6%.
FSLY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, FSLY trades at a forward price-to-sales ratio of 4.11, higher than the industry’s average of 3.75.
FSLY Valuation Compared to Industry
Image Source: Zacks Investment Research
Key Takeaways FSLY's Q1 2026 security revenues rose 47% to $38.8M, reaching 22% of total revenues. FSLY is selling beyond Next-Gen WAF into DDoS, Bot Management and API Discovery, driving new wins.FSLY net retention improved to 113% from 100%, as customers expand into broader multi-product deployments. Fastly, Inc. (FSLY - Free Report) is increasingly demonstrating that its cross-selling strategy is becoming a meaningful growth driver as the company expands customer adoption across its network, security and compute portfolio. The first quarter of 2026 showed that FSLY is not only adding products to its platform but also turning customer relationships into broader multi-product deployments.
The trend became particularly visible in the first quarter as Fastly’s broader security stack gained traction alongside its core web application firewall business. Security revenues jumped 47% year over year to $38.8 million and accounted for 22% of total revenues. The growth was supported by new customer wins as well as expansion within the existing customer base.
Fastly is now seeing enterprises adopt multiple security products simultaneously rather than entering through a single offering. Demand expanded beyond the company’s flagship Next-Gen WAF into newer products such as DDoS Protection, Bot Management and API Discovery and Inventory. Almost half of the security product instances sold to new customers during the quarter came from these newer offerings.
The strategy is also translating into larger deal sizes and broader deployments. A leading digital payment conglomerate expanded its relationship with Fastly by adding 10 new products and services, while a global social media corporation selected Fastly in a cross-sell security win tied to securing global API traffic.
Customer expansion trends continued to strengthen. Fastly’s trailing 12-month net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader range of customers. The latest quarter indicates that Fastly’s broader platform is helping deepen customer adoption, with security cross-sell, multi-product deployments and improved net retention pointing to stronger wallet-share capture across its customer base.
What Do the Latest Metrics Say About Fastly?Fastly, which competes with Akamai Technologies, Inc. (AKAM - Free Report) and Cloudflare, Inc. (NET - Free Report) , has seen its shares rally 120.7% over the past year against the industry’s decline of 12.4%. Shares of Akamai Technologies and Cloudflare have gained 89% and 33.6%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Fastly's forward 12-month price-to-sales ratio stands at 3.4, lower than the industry’s 3.81. The company is trading at a discount to AKAM (with a forward 12-month P/S ratio of 4.57) as well as NET (24.44).
Fastly is delivering robust growth and margin expansion, driven by AI-native products like Fastly Compute and strong security offerings. FSLY's consumption-based pricing model shields it from SaaS sector headwinds, supporting rising net retention rates even in a challenging macro environment. Security products now comprise 22% of revenue, growing nearly 50% y/y, further diversifying FSLY's growth drivers beyond AI compute.
A month has gone by since the last earnings report for Fastly (FSLY - Free Report) . Shares have added about 2.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Fastly due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
FSLY Q1 Earnings Beat Estimates on Security and Compute GrowthFastly reported first-quarter 2026 non-GAAP earnings of 13 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 5 cents per share in the year-ago quarter.
Revenues were $173 million, up 19.8% year over year, and edged past the consensus mark by 0.76%. The quarterly results reflected strong execution across the platform, highlighted by accelerating security momentum and rising compute demand tied to increasingly complex edge workloads. Remaining performance obligations (RPO) ended the quarter at $369 million, up 63% year over year, pointing to improved upfront customer commitments.
FSLY Revenue Mix Highlights Platform BreadthFSLY’s first-quarter growth leaned on continued share gains in core delivery, alongside faster expansion in newer products. Network Services revenues rose 11% year over year to $126.2 million, supported by performance-driven wins in use cases where speed and reliability matter.
Security remained the standout, growing 47% year over year to $38.8 million and reaching record levels in both dollars and mix. The “Other” category, which includes Compute and Observability, jumped 67% year over year to $8 million, reflecting a meaningful step-up in compute adoption versus the year-ago quarter.
Fastly Expands Customer Base and CommitmentsFastly ended the quarter with 634 large customers, defined as those producing more than $100,000 in annualized revenues in the quarter. Management noted it is placing greater emphasis on large customer acquisition as a more meaningful gauge of go-to-market progress.
Retention also improved, with trailing 12-month net retention rising to 113% from 110% in the prior quarter. The company highlighted that retention gains are extending beyond the very largest accounts into a broader range of customers, aligning with a platform approach that supports upsell and cross-sell across network, security and compute.
FSLY Lifts Margins on Efficiency and Accounting ShiftProfitability improved sharply in the quarter as the company continued to emphasize traffic engineering and platform efficiency. Non-GAAP gross margin reached 65.1%, up from 57.3% reported in the year-ago quarter.
Operating expenses increased 15% year over year to $132.1 million.
FSLY’s non-GAAP operating income came in at $19.1 million against an operating loss of $5.85 million.
Fastly Generates Cash Despite Higher Infrastructure SpendFSLY ended the quarter with approximately $330 million in cash, cash equivalents and investments. Management highlighted a $31 million sequential decline in cash, primarily driven by the retirement of $39 million of long-term debt that came due in March 2026.
Fastly produced $28.9 million of cash flow from operations in the reported quarter, up from $17.3 million in the year-ago period.
Free cash flow was $4.1 million, though down from $8.2 million a year earlier as infrastructure spending increased year over year.
FSLY Raises 2026 Outlook, Sees AI as TailwindFor the second quarter of 2026, FSLY guided revenues to $170-$176 million and non-GAAP earnings to 5-8 cents per share.
The company also raised 2026 revenue guidance to $710-$725 million and expects non-GAAP earnings of 27-33 cents per share, reflecting improved profitability expectations as the business scales.
Management framed AI-driven demand as a meaningful tailwind, citing stronger interest in security and compute as customers work to secure and scale automated and agent-driven traffic.
Fastly is seeing agentic-related volume tailwinds in network services and more pronounced security attach as customers protect AI workloads. The company also noted that pricing dynamics in Network Services remain similar to recent quarters as customers unlock volume discounts under existing contracts.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresAt this time, Fastly has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Fastly has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerFastly belongs to the Zacks Internet - Software industry. Another stock from the same industry, DigitalOcean Holdings, Inc. (DOCN - Free Report) , has gained 20% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
DigitalOcean reported revenues of $257.9 million in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $0.44 for the same period compares with $0.56 a year ago.
DigitalOcean is expected to post earnings of $0.26 per share for the current quarter, representing a year-over-year change of -55.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DigitalOcean. Also, the stock has a VGM Score of F.
New Fastly Research Reveals Rapidly Growing AI Traffic is Reshaping the Internet, Driving Need for Machine Traffic Strategies
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leading global edge cloud platform, today released new research showing that AI-generated traffic is emerging as a distinct layer of internet activity, requiring organizations to rethink how they manage automated requests, protect infrastructure, and capture value from machine interactions.
Analysis of traffic across Fastly's global network found that AI requests grew approximately 30% between January and May 2026, which is about 6.5 times faster than human traffic during the same period. While AI traffic continues to grow in importance, Fastly's research suggests the more significant shift is how AI systems interact with digital infrastructure.
The findings point to a new reality for businesses: while stopping bad bots remains important, organizations increasingly need to think and act strategically to capture the growing value from automated interactions.
Fastly's research highlights several emerging trends:
Organizations are making increasingly strategic decisions about AI traffic management, balancing content protection, visibility, customer acquisition, and digital distribution, which can influence whether AI systems discover, reference, and surface their content and ultimately how customers find and engage with their business. Machine traffic now represents a significant share of internet activity, including AI crawlers, AI fetchers, bots, agents, and API-driven systems. AI traffic takes many forms, with crawlers and fetchers showing different patterns, purposes, and demands on infrastructure. AI fetchers and agents are becoming increasingly important, as AI assistants retrieve real-time information to answer questions, compare options, validate facts, and complete tasks on behalf of users. "AI traffic is fundamentally changing how the internet operates," said Artur Bergman, Founder and Chief Technology Officer at Fastly. "Businesses are moving beyond a world where humans are the primary users of digital experiences. The challenge is no longer simply blocking bots, it's understanding which machine interactions should be accelerated, managed, challenged, or stopped."
The research also identified two distinct categories of AI traffic – AI crawlers and AI fetchers. AI crawlers systematically gather information from the web to build and update AI models, while AI fetchers retrieve information in response to specific user requests through AI assistants and emerging agentic applications. Based on May 2026 data, these workloads also place different demands on infrastructure, with more than half (51%) of AI requests requiring origin access compared to less than 9% for human requests. Fastly also observed AI traffic growing at an exceptional rate, with Claude-related traffic increasing by more than 555% compared with its January 2026 baseline.
The findings suggest that AI traffic management is evolving from a security and infrastructure concern into a broader business strategy. As organizations evaluate how AI systems interact with their content, applications, and APIs, visibility and control are becoming increasingly important.
Fastly's analysis also highlights a growing divergence in how organizations are responding to AI traffic. In one case, a large company instituted a hard block against a sudden spike in AI fetcher traffic, most likely to maintain content authority. Another large company chose not to block AI agents, resulting in an increase in fetcher volume over multiple months and potentially greater visibility with AI-powered services. These examples illustrate how decisions about AI traffic can influence not only access to content, but also customer engagement in an increasingly agent-driven internet.
The research points to three foundational elements of an effective machine traffic strategy: visibility into which AI systems are interacting with digital properties, context around how those systems behave and whether they create business value, and the precision to respond differently based on intent and impact. Fastly helps customers execute that machine traffic strategy at the edge. In the path of every request, Fastly delivers the visibility, context, and precision required to balance performance, security, bot management, and origin access with real-time intelligence.
To get more detailed insights, read our blogs at fastly.com.
About Fastly
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at a global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.
Forward-looking statements
This press release contains “forward-looking” statements that are based on Fastly’s beliefs and assumptions and on information currently available to Fastly. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause its actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, those regarding expectations regarding the future growth, velocity, and composition of AI and automated traffic; the adoption rates and scale of agentic workloads and AI assistants; the behavioral patterns of AI crawlers and fetchers; the impacts of automated requests on web infrastructure; and the performance, capabilities, and expectations regarding customer experiences with Fastly’s products and services, including Fastly Bot Management. Except as required by law, Fastly assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Intelligent Solution Brings Agent Identity and Payment Infrastructure to the Edge Cloud, Turning Autonomous AI Traffic into Trusted E-Commerce Opportunities
SAN FRANCISCO--(BUSINESS WIRE)--Fastly (NASDAQ: FSLY), a leader in global edge cloud platforms, and Skyfire, the agentic commerce platform providing identity and payment infrastructure for AI agents, today announced a new partnership that enables trusted agentic commerce at the edge. Skyfire has integrated its identity and payment-backed credentials into Fastly’s programmable edge cloud platform so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure.
As AI agents increasingly browse, negotiate, and complete transactions autonomously, businesses face a fundamental challenge: they must distinguish trusted, revenue-generating agents from malicious automation, in real time for billions of transactions. Together, Fastly and Skyfire can transform AI agent traffic from a potential security risk into an accountable, monetizable channel. This innovative solution uses enhanced intelligence to verify the AI agents, which can save customers valuable development time, while also automatically identifying which agents to trust and which to block.
Skyfire verifies the identity and the ability to pay for valid non-human requests while providing a resilient, secure and high-performance platform where decisions are made and enforced in real time and at global scale. Its developer-friendly, programmable architecture ensures that organizations have the flexible infrastructure that can adapt to business necessities. Additionally, it provides the open protocol and payment infrastructure designed specifically for AI agents and is complementary to Fastly’s AI Bot Management and Application Security (AppSec) solutions.
“AI agents are rapidly becoming autonomous consumers of APIs, content, and commerce,” said Amir Sarhangi, CEO of Skyfire. “The question for enterprises isn’t whether agents will show up – it is whether they can identify them and build sustainable business models around them. Our mission with Fastly is to integrate our verified agent identity and payment-backed credentials directly into the edge layer, transforming agent traffic from anonymous automation into accountable economic activity.”
With Skyfire’s protocol identity and payment-backed credentials and Fastly’s global distributed edge network, identity verification and payment validation can occur in milliseconds at the edge, making the solution faster, more reliable, and secure. This intelligent architecture enables enterprises to:
Identify who is behind every agent request with verified, tokenized Know Your Customer (KYC) credentials with real-time decisioning. Apply identity-based policies, limits, and pricing dynamically with programmable control over agent behavior without backend redesign. Maintain global scalability and resilience for high-concurrency agent traffic. Ensure compatibility with existing APIs, authentication systems, and checkout flows. "Many enterprises running on Fastly’s network are already seeing autonomous agents show up in their traffic, and those gaining an advantage are the ones treating that traffic as an economic signal, not just a security event,” said Jeff Alpen, Vice President of Global Partner Ecosystems at Fastly. “Our open platform enables us to deliver practical, immediate value by supporting key ecosystem integrations, such as Skyfire’s identity and payment capabilities. Together with Fastly’s AI Bot Management and Application Security solutions, the end result is customers being able to verify who's behind an agent request and attach real commercial value to it without rearchitecting their existing architecture."
About Fastly
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at a global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.
About Skyfire
Skyfire is the complete agentic commerce platform for AI agents and businesses. The platform provides everything agents need to securely access, transact, and pay across websites, APIs, and digital services, including tokenized Know Your Agent (KYA) identity, programmable payments, stablecoin wallets, and tokenized credit cards. Skyfire enables enterprises to transform AI agents from anonymous automation into trusted participants in the digital economy, unlocking new revenue streams while maintaining security and compliance. Learn more at https://skyfire.xyz.
Fastly and Skyfire Partner to Enable Trusted Agentic Commerce with Verified Identity at the Edge Fastly (NASDAQ: FSLY), a leader in global edge cloud platforms, and Skyfire, the agentic commerce platform providing identity and payment infrastructure for AI agents, today announced a new partnership that enables trusted agentic commerce at the edge. Skyfire has integrated its identity and payment-backed credentials into Fastly’s programmable edge cloud platform so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure.
As AI agents increasingly browse, negotiate, and complete transactions autonomously, businesses face a fundamental challenge: they must distinguish trusted, revenue-generating agents from malicious automation, in real time for billions of transactions. Together, Fastly and Skyfire can transform AI agent traffic from a potential security risk into an accountable, monetizable channel. This innovative solution uses enhanced intelligence to verify the AI agents, which can save customers valuable development time, while also automatically identifying which agents to trust and which to block.
Skyfire verifies the identity and the ability to pay for valid non-human requests while providing a resilient, secure and high-performance platform where decisions are made and enforced in real time and at global scale. Its developer-friendly, programmable architecture ensures that organizations have the flexible infrastructure that can adapt to business necessities. Additionally, it provides the open protocol and payment infrastructure designed specifically for AI agents and is complementary to Fastly’s AI Bot Management and Application Security (AppSec) solutions.
“AI agents are rapidly becoming autonomous consumers of APIs, content, and commerce,” said Amir Sarhangi, CEO of Skyfire. “The question for enterprises isn’t whether agents will show up – it is whether they can identify them and build sustainable business models around them. Our mission with Fastly is to integrate our verified agent identity and payment-backed credentials directly into the edge layer, transforming agent traffic from anonymous automation into accountable economic activity.”
With Skyfire’s protocol identity and payment-backed credentials and Fastly’s global distributed edge network, identity verification and payment validation can occur in milliseconds at the edge, making the solution faster, more reliable, and secure. This intelligent architecture enables enterprises to:
Identify who is behind every agent request with verified, tokenized Know Your Customer (KYC) credentials with real-time decisioning. Apply identity-based policies, limits, and pricing dynamically with programmable control over agent behavior without backend redesign. Maintain global scalability and resilience for high-concurrency agent traffic. Ensure compatibility with existing APIs, authentication systems, and checkout flows. "Many enterprises running on Fastly’s network are already seeing autonomous agents show up in their traffic, and those gaining an advantage are the ones treating that traffic as an economic signal, not just a security event,” said Jeff Alpen, Vice President of Global Partner Ecosystems at Fastly. “Our open platform enables us to deliver practical, immediate value by supporting key ecosystem integrations, such as Skyfire’s identity and payment capabilities. Together with Fastly’s AI Bot Management and Application Security solutions, the end result is customers being able to verify who's behind an agent request and attach real commercial value to it without rearchitecting their existing architecture."
About Fastly
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at a global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.
About Skyfire
Skyfire is the complete agentic commerce platform for AI agents and businesses. The platform provides everything agents need to securely access, transact, and pay across websites, APIs, and digital services, including tokenized Know Your Agent (KYA) identity, programmable payments, stablecoin wallets, and tokenized credit cards. Skyfire enables enterprises to transform AI agents from anonymous automation into trusted participants in the digital economy, unlocking new revenue streams while maintaining security and compliance. Learn more at https://skyfire.xyz.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260610660439/en/
Fastly trades at 4.3x EV/NTM revenue despite 20% revenue growth—the peer floor for comparable growth names is 5.5-6x, making the discount hard to justify on fundamentals alone. NRR accelerated from 100% to 113% in four consecutive quarters while RPO surged 63% YoY—both metrics signal the platform strategy is working, not hoping. Security revenue grew 47% YoY for the fourth straight quarter and now represents 22% of total revenue, directly driving a 9-point gross margin expansion since Q1 2025.
Deere DE shares are experiencing a significant decline following its fiscal Q2 earnings report, despite exceeding expectations on both revenue and earnings. Investors are worried about ongoing weakness in demand for large agricultural equipment and declining profitability in the Production & Precision Ag segment.
Key highlights from the earnings report include:
Total net sales and revenues rose 5% year-over-year to $13.37 billion, with Equipment Operations net sales increasing 5.4% to $11.78 billion, surpassing the FactSet consensus estimate of $11.55 billion. Diluted earnings per share (EPS) reached $6.55, exceeding the consensus estimate of $5.70, although it was slightly lower than the $6.64 reported in the same period last year. Production & Precision Agriculture net sales fell 14% year-over-year to $4.50 billion, with operating profit dropping to $706 million from $1.15 billion due to reduced farm demand and challenging crop economics. Deere maintained its forecast for a 15-20% decline in U.S. and Canada large agricultural industry volumes for FY26, highlighting ongoing softness in the farm equipment cycle. Small Agriculture & Turf net sales increased 16% year-over-year to $3.49 billion, with operating profit at $574 million, driven by healthy demand despite rising production costs. The Construction & Forestry segment showed impressive growth, with net sales jumping 29% year-over-year to $3.79 billion and operating profit rising to $561 million from $379 million last year. Deere raised its FY26 Construction & Forestry sales growth outlook to approximately 20% from the previous 15%, reflecting strong trends in infrastructure and compact construction demand. Operating margin guidance for FY26 in Production & Precision Ag was maintained at 11-13%, below the FY25 level of 15.4%, while Construction & Forestry margins are projected at 10-12%. Dealer inventory levels remained stable, particularly for combines, indicating prudent management of channel inventories by Deere.Analysts note that DE's performance was better than expected, primarily driven by strong results in the Construction & Forestry segment and resilient demand in Small Ag. The reaffirmation of full-year earnings guidance amidst pressures in large agricultural markets suggests that the downturn may be stabilizing. Additionally, the raised growth outlook for Construction & Forestry is a positive sign, although challenges in Production & Precision Ag persist due to lower crop prices and weaker cash flows impacting large equipment purchases. Stable dealer inventories and improving retail trends in certain areas further support the notion that agricultural conditions are becoming more manageable. Overall, DE is demonstrating solid cost discipline and operational resilience while capitalizing on increasing infrastructure-related demand.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Deere & Company (NYSE:DE, XETRA:DCO) reported quarterly results that came in ahead of Wall Street expectations for both sales and profit, even as weakness in agricultural equipment demand continued to weigh on its core farm machinery business.
For the fiscal second quarter ended May 3, the company posted earnings per share of $6.55, slightly below $6.64 in the same period a year earlier but above analyst expectations of $5.70.
Net income was $1.77 billion, compared with $1.80 billion a year ago.
Worldwide net sales and revenues rose 5% to $13.37 billion, also ahead of consensus estimates of $11.56 billion.
Despite the stronger-than-expected performance, Deere left its annual net income forecast unchanged, signaling it still anticipates a challenging environment in the second half of the year.
Sales of large farm equipment declined 14% during the quarter, reflecting continued pressure in the agricultural sector. Weak crop prices and elevated input costs, including fertilizer, fuel and other production expenses, have reduced farm incomes and weighed on demand for tractors, combines and related machinery.
On a segment basis, Deere said strength in its Small Agriculture & Turf and Construction & Forestry businesses helped offset softness in its large agriculture equipment division. The company’s Production & Precision Agriculture unit remained under pressure amid the broader downturn in row-crop demand.
Shares of Deere traded down almost 8% post-earnings.
“Our performance in the current market environment demonstrates the strength of our diversified portfolio,” Deere CEO John May said in a statement. “As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth.”
Key Takeaways Deere posted Q2 EPS of $6.55, topping estimates as equipment sales rose 5.4% y/y.DE's Construction & Forestry sales jumped 29%, while Small Ag & Turf sales climbed 16%.Deere maintained fiscal 2026 net income guidance of $4.5-$5B despite weaker ag demand. Deere & Company (DE - Free Report) reported second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.
Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top-line beat the Zacks Consensus Estimate of $11.44 billion.
Total net sales and revenues (including Financial Services and other income) rose 5% year over year to $13.37 billion. Top-line growth was driven by higher shipment volumes and favorable currency translation in key segments, partly offset by softer Production & Precision Ag volumes and higher production costs.
Deere’s Profits Decline in Q2On a consolidated basis, cost of sales increased 8.6% year over year to $8.27 billion, outpacing the 5% rise in net sales. Research and development expenses grew 6.2% to $583 million, while selling, administrative and general expenses inched up 1% to $1.21 billion.
Total operating profit decreased 3.1% year over year to $2.237 billion.
DE’s Segmental Performances in Q2The Production & Precision Agriculture segment’s net sales declined 14% year over year to $4.50 billion due to lower shipment volumes, partially offset by favorable foreign currency translation. Segment operating profit fell 39% from the year-ago quarter to $706 million, reflecting lower shipment volumes and higher production costs, partially offset by favorable foreign currency exchange.
Small Agriculture & Turf net sales increased 16% year over year to $3.49 billion on higher shipment volumes and favorable foreign currency translation. Operating profit rose 25% year over year to $719 million, driven mainly by higher shipment volumes and favorable price realization.
Construction & Forestry net sales were $3.79 billion, up 29% year over year, primarily on higher shipment volumes and favorable foreign currency translation. Operating profit improved 48% year over year to $561 million, aided by higher shipment volumes and favorable price realization, partially offset by higher production costs.
Revenues in Deere’s Financial Services division were $1.37 billion in the quarter, down 1% year over year. The segment’s operating profit increased 21% year over year to $251 million. Net income for Financial Services climbed 18% year over year to $190 million in the fiscal second quarter.
Deere’s Q2 Cash PositionBalance sheet and cash-flow metrics were supportive. Cash and cash equivalents were $7.905 billion as of May 3, 2026, and inventories were $8.188 billion. For the first six months of fiscal 2026, net cash provided by operating activities was $1.04 billion, up from $0.57 billion in the prior-year period, reinforcing Deere’s financial flexibility through a choppier demand environment.
DE Maintains 2026 Profit ViewDeere maintained its forecast for net income attributable to the company for fiscal 2026 at $4.5-$5 billion.
Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Sales of Small Agriculture & Turf are expected to rise 15%. Sales of Construction & Forestry are projected to increase 20%. The Financial Services segment’s net income is expected to be $860 million.
Deere’s Share Price PerformanceShares of the company have gained 10.3% in the past year compared with the industry’s 7.2% growth.
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DE’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Look at Deere’s Peer PerformancesLindsay Corporation (LNN - Free Report) delivered earnings per share of $1.15 in second-quarter fiscal 2026 (ended Feb. 28, 2026, missing the Zacks Consensus Estimate of $1.60. The bottom line decreased 53% year over year.
Lindsay generated revenues of $158 million, down from $187 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $165 million.
AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.
Farm machinery demand stayed weak as Deere posted $1.77 billion in quarterly net income and maintained full-year guidance. Summary
Agriculture weakness offset strong construction and forestry growth.
Deere DE shares came under pressure after investors looked past stronger-than-expected fiscal second-quarter earnings and focused instead on a farm equipment market that still looks soft across North America. The world's largest farm machinery maker kept its full-year net income outlook unchanged at $4.5 billion to $5 billion, while second-quarter net income reached $1.77 billion, ahead of the $1.54 billion estimate. The stock fell as much as 4.4% in New York, touching its lowest level since February, as investors weighed whether the agriculture downturn may take longer to recover.
The core issue remains farmer demand. Deere's production and precision agriculture segment saw net sales fall 14% in the quarter, with lower shipment volumes and higher production costs pressuring profit in the farming business. Deere still expects sales in the US and Canada to fall 15% to 20% for the year, while its South America outlook worsened to a 15% decline from a previous expectation for only a 5% drop. That matters because Deere had previously signaled that 2026 could mark the bottom of the US farm economy's down cycle, but higher fuel and fertilizer costs tied to the Iran war could possibly complicate that recovery path.
There was still a stronger pocket inside the business. Deere's construction and forestry sales rose 29% from a year earlier, helped by higher shipment volumes and pricing, while small agriculture and turf sales climbed 16%. The company also benefited from $272 million in tariff refund claims, and the AI-driven construction boom could be supporting demand for equipment in that segment. For investors, the setup is mixed: Deere is still profitable and holding its outlook, but the weak agriculture cycle, higher input costs, and a worse South America forecast suggest the recovery may remain uneven.
HIVE Weaponizes Power for an AI PivotDeere & Company NYSE: DE reported higher second-quarter sales and maintained its full-year profit outlook, as strength in construction equipment and Small Ag & Turf helped offset continued weakness in large agriculture markets.
On the company’s earnings call, Director of Investor Relations Chris Seibert said Deere delivered year-over-year net sales growth of 5% and an equipment operations margin of 16.9%, reflecting “solid execution and a strong, diversified portfolio of businesses spanning multiple industries and geographies.”
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Dollar at a 3-Year Low: 3 Exporters Quietly Printing MoneyFor the quarter, Deere reported net sales and revenues of $13.369 billion, up 5% from the prior year. Equipment operations net sales rose 5% to $11.778 billion. Net income attributable to Deere & Company was $1.773 billion, or $6.55 per diluted share.
The company maintained its fiscal 2026 net income forecast of $4.5 billion to $5 billion. Deere also continues to expect equipment operations cash flow of $4.5 billion to $5.5 billion. Its effective tax rate guidance is now 24% to 26%.
Tariff Refunds Boost Quarterly Margins 3 Agriculture Stocks to Buy as Food Inflation Stays Elevated in 2026A notable item in the quarter was a $272 million recovery tied to refund claims related to IEPA tariffs. Josh Beal, Deere’s director of investor relations, said the refund benefited production costs and lifted margins by nearly 2.5 percentage points in the quarter.
Beal said Deere’s direct tariff exposure remains approximately $1.2 billion on a full-year basis, or about a 3 percentage point margin headwind. Net of the refunds, the company’s forecast includes about $900 million of tariff costs for the year.
Chief Financial Officer Brent Norwood said Deere has not introduced tariff surcharges for customers and is instead focused on mitigation efforts including resourcing, reshoring, exemption submissions and USMCA compliance. Norwood said Deere’s implied net price realization for equipment operations is between 1.5% and 2% for the year, in line with general inflation excluding tariffs.
Norwood also highlighted Deere’s domestic manufacturing footprint, saying about 80% of John Deere’s U.S. complete goods sales are produced at U.S. facilities, and roughly 75% of components used at those facilities are sourced from U.S.-based suppliers.
Segment Results Show Diverging Cycles Deere’s Production and Precision Agriculture segment remained under pressure. Net sales fell 14% year over year to $4.503 billion, primarily due to lower shipment volumes, partially offset by favorable currency translation. Operating profit was $706 million, resulting in a 15.7% operating margin.
Small Ag & Turf posted stronger results, with net sales rising 16% to $3.485 billion, driven by higher shipment volumes and favorable currency translation. Operating profit rose to $719 million, and the segment delivered a 20.6% operating margin.
Construction & Forestry was the strongest growth segment in the quarter. Net sales increased 29% to $3.79 billion, supported by higher shipment volumes and favorable currency translation. Operating profit rose to $561 million, producing a 14.8% operating margin.
Norwood said Deere’s business segments are at different points in the cycle, with large agriculture operating below trough levels, Small Ag & Turf progressing toward mid-cycle and Construction & Forestry slightly above mid-cycle. Despite that, he said Deere is delivering double-digit margins across all segments and expects to grow its top line by more than 5% this year.
Market Outlook: Construction Strength Offsets Ag Weakness Deere continues to expect large agriculture equipment industry sales in the U.S. and Canada to decline 15% to 20%, citing elevated input costs and ongoing global market uncertainty. However, Seibert said robust commodity demand, potential tightening supply and U.S. government programs are providing some support for farmers.
The company lowered its South America outlook, now expecting tractor and combine industry sales to decline about 15%. Beal said the change reflects incremental softness in Brazil, where high interest rates, higher input costs and a stronger Brazilian real are pressuring grower profitability. He said the situation in Iran is affecting Brazilian growers at a sensitive point as they prepare to plant a new crop in September.
In the U.S. and Canada, Deere expects Small Ag & Turf industry demand to range from flat to up 5%. The company also expects European agricultural equipment demand to be flat to up 5%, while industry sales in Asia are projected to be roughly flat year over year.
Construction demand remains robust, Norwood said, supported by infrastructure spending, rental activity and accelerating data center investments. Deere now expects Construction & Forestry net sales to rise approximately 20% for the full year, and it increased the segment’s operating margin forecast to 10% to 12%.
Norwood said Deere’s U.S. and Canada construction order book has increased more than 60% since November and is at its highest level since April 2024, with more than 80% of production slots filled for the year.
Inventory Progress and Technology Investment Deere said it has continued to make progress managing inventories in large agriculture. Beal said new inventory levels for North American high-horsepower tractors and combines are down more than 50% from their mid-2024 peak, with inventory-to-sales ratios in line with historical averages.
Used inventories have also improved. Beal said North American used combine inventories are down by the mid-teens from their March 2024 peak, while used high-horsepower tractor inventories are also down by the mid-teens from the cycle peak. Used sprayer inventories are down approximately 30%, and planter inventories are down roughly 50% from recent peak levels.
Deere also emphasized ongoing investment in precision agriculture and new products. Beal highlighted new 8R and 8RX tractor models, ExactDepth and FurrowVision planting technologies, and expanded See & Spray capabilities for crops including wheat, barley and canola.
Beal said Deere has sold more than 12,500 JDLink Boost kits since launching its Starlink-supported satellite connectivity solution in the second half of 2024, with 25% growth in the latest quarter. He also said monthly active digital users have reached nearly 440,000.
Norwood said Deere returned $635 million to shareholders during the quarter through share repurchases and dividends. He said the company remains focused on disciplined capital allocation while continuing to invest through the cycle in products and technologies intended to help customers reduce inputs and improve productivity.
About Deere & Company NYSE: DEDeere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.
The company's principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.
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Key Takeaways DE topped Q2 estimates with $1.773B net income on $11.78B sales, but large ag stayed pressuredDE booked a $272M IEEPA tariff refund, yet still expects about $900M of tariff costs this yearDE says 2026 is the ag-cycle bottom; N.A. high-hp tractor/combine inventories down 50% from mid-2024 peaks Deere & Company (DE - Free Report) used its second-quarter call to argue that portfolio balance, not a turn in large agriculture, is carrying the year. Management kept full-year net income guidance intact even as Brazil weakened and tariffs remained a material drag.
That steadiness mattered because the call centered less on the quarter’s headline beat and more on what executives said about demand, pricing, inventories and the path into 2027.
DE Keeps Net Income Guide IntactDE reported second-quarter net income of $1.773 billion, or $6.55 a share, on net sales of $11.78 billion. That topped the Zacks Consensus Estimate of $5.81 for earnings and $11.44 billion for revenues, producing surprise percentages of 12.74% and 2.98%, respectively.
Management did not frame the quarter as a broad-based acceleration. Instead, executives emphasized that the company is operating through different cycle positions across its businesses, with large agriculture still under pressure, while Small Ag & Turf and Construction & Forestry supported the enterprise.
Director of Investor Relations Christopher Seibert said equipment operations margin reached 16.9%, while management kept fiscal 2026 net income guidance at $4.5 billion to $5.0 billion. That unchanged outlook was a central message throughout the call.
Deere Sees Different Cycles Across UnitsCFO Brent Norwood said large agriculture is running below trough levels, Small Ag & Turf is moving toward mid-cycle and Construction & Forestry is slightly above mid-cycle. That framing helped explain why Deere kept stressing resilience rather than recovery.
Production & Precision Agriculture remained the weak point. Segment sales fell 14% to $4.503 billion and operating margin compressed to 15.7% from 22.0% a year ago, reflecting lower shipment volumes and higher production costs.
The offset came from the other segments. Small Ag & Turf posted 16% sales growth and a 20.6% operating margin, while Construction & Forestry delivered 29% sales growth and a 14.8% operating margin. Management repeatedly pointed to diversification as the reason the company can absorb ongoing agricultural softness.
DE Faces Same Tariff Burden After RefundA major swing factor in the quarter was a $272 million recovery tied to IEEPA tariff refund claims accepted by U.S. Customs and Border Protection. Josh Beal, director of investor relations, said that lifted equipment margins by nearly 2.5 points in the quarter.
Even so, management said the full-year direct tariff exposure is effectively unchanged at about $1.2 billion, or roughly a 3% margin headwind. Net of the refund, the company now expects about $900 million of tariff costs for the year.
Norwood’s tone on pricing was disciplined rather than aggressive. He said DE is not using tariff surcharges and expects implied equipment price realization of 1.5% to 2% for the year, in line with general inflation excluding tariffs. The mitigation plan centers on sourcing changes, exemptions, compliance work and cost actions.
Deere Gets More Constructive on DemandDeere raised its Construction & Forestry sales outlook to about 20% growth for fiscal 2026 and lifted that segment’s operating margin range to 10% to 12%. Norwood said order books in the United States and Canada are up more than 60% since November, with more than 80% of production slots filled.
Management tied that strength to infrastructure spending, rental fleet replacement, data center projects and roadbuilding demand. The company also said nearly all production slots for its new Deere-designed excavator are already spoken for.
Agriculture was more mixed. Seibert said the South American tractor and combine market is now expected to decline about 15%, versus the prior down 5% view, because Brazil is facing higher input costs, high interest rates and a stronger real. Outside South America, agriculture guides were largely unchanged.
DE Q&A Focuses on Inventory and 2027Analyst questions repeatedly tested whether the company is truly at the bottom of the ag cycle. In response, management sounded measured but consistent, saying fiscal 2026 still represents the bottom and that some recovery is expected in 2027.
Beal backed that view with inventory data. North American new inventories for high-horsepower tractors and combines are down more than 50% from mid-2024 peaks, while used combine and used tractor inventories are down by the mid-teens from peak levels.
Questions from Jefferies, Morgan Stanley and Raymond James also pressed on pricing and farmer behavior. Management acknowledged pressure from fertilizer and other inputs, especially in Brazil, but said dealer feedback and improving used inventory conditions support the company’s baseline recovery view for next year.
Deere Leans on Tech and DisciplineAnother theme was through-cycle investment. Management highlighted new 8R and 8RX tractor models, ExactShot and FurrowVision planting tools, and broader crop coverage for See & Spray as evidence that Deere is still investing heavily despite the ag downturn.
Executives also pointed to digital adoption. DE said engaged acres in Operations Center rose about 10% year over year, monthly active digital users reached nearly 440,000 and more than 12,500 JDLink Boost kits have been sold since the Starlink-based connectivity launch.
Capital allocation remained active as well. Norwood said the company returned $635 million to shareholders in the quarter through buybacks and dividends, while maintaining a posture centered on execution, investment and balance-sheet flexibility.
Zacks Rank and Style SignalsDE carries a Zacks Rank #3 (Hold) with a Value Score of D, Growth Score of D, Momentum Score of B and VGM Score of D. A Zacks Rank #3 points to a more neutral near-term earnings revision profile than the stronger #1 or #2 ranks. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores add a mixed overlay. Momentum stands out as the strongest factor, while the weaker Value, Growth and VGM scores imply a less favorable setup on those measures. Under the Zacks framework, stronger combinations usually come from stocks with a Zacks Rank #1 or #2 and Style Scores of A or B. The rank can also change as estimate revisions adjust after the latest results.
