Deere & Co. NYSE: DE delivered a Q2 2026 earnings report that didn’t hide the ball. That transparency makes it easy to understand why DE dropped nearly 5% after the report’s release. The industrial giant posted a double-beat, including a 15% beat on adjusted earnings per share (EPS). But the company’s report showed that the heavy lifting (no pun intended) is being done by its Construction and Forestry business.
Deere & Company Today
DE
Deere & Company
$577.05 +8.41 (+1.48%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$433.00▼
$674.19Dividend Yield1.12%
P/E Ratio32.69
Price Target$639.58
That dovetails nicely with the blockbuster report from NVIDIA Corp. NASDAQ: NVDA that showed data center demand continues to grow and is likely to continue for several years.
Get Deere & Company alerts:
But Deere's report also showed weakness in its Production and Precision Agriculture business. That’s been the golden goose for Deere, and for now it’s a little tarnished.
Plus, while the construction demand is likely to be in play for several quarters, that isn’t likely to do a heavy lift on earnings. In fact, Deere reiterated its full-year earnings guidance.
That suggests that any artificial intelligence (AI) tailwind will simply help earnings from deteriorating, rather than driving further growth.
Farmers Continue to Face HeadwindsIt’s not easy being a farmer under good conditions. But the last few years have been particularly cruel to the industry. Inflation for farmers is about more than fuel. It’s fertilizer, seeds, and the elevated costs for heavy equipment like tractors and combines. All of these are on the rise, mostly due to the conflict with Iran that has brought traffic in the Strait of Hormuz to a standstill.
That's why net sales in the Production and Precision Agriculture business were down 14% in the quarter, and Deere guided to a full-year loss between 5% and 10%. The company also forecasted a lower operating margin between 11% and 13%, down from 15.4% on a year-over-year basis.
For investors who are familiar with Deere’s revenue mix, one item in the report that stood out was the projected 15% net sales decline for the company’s Ag business in South America and softness in Asia and Europe as well.
The company generates about 40% of its revenue outside the United States. It has a particularly strong presence in Latin America, which accounts for over $5.5 billion in annual sales. That's helped it weather softness in the U.S. dollar. But that advantage won’t matter if revenue declines.
The industry got potentially good news from the U.S.-China summit, with the White House estimating that China will buy an additional $17 billion in American farm goods annually. That would extend beyond the country’s initial commitment to buy soybeans.
AI to the Rescue?As challenging as the situation in the company’s core business looks, a diversified business model has its advantages. Deere posted strong gains in its Construction and Forestry business, highlighted by strong data center demand. The company forecasted net sales growth of 20% for the year, with an operating margin between 10% and 12%, above today’s 9%.
Deere also forecasts growth in its Small Ag and Turf business. This includes the company’s specialty, utility, and compact tractors that are used for commercial mowing, golf course maintenance, and utility vehicles. It sometimes gets lumped in with the Precision Ag business, but it would be a mistake for investors not to break apart the two sectors right now.
DE Is Still a Stock to HoldAt 30x earnings, DE is still trading at a slight premium to the S&P 500 and its own historical average. But that valuation has come down from recent readings of about 32x earnings. The same is true of the company’s price-to-sales (P/S) and price-to-book (P/B) ratios.
The bottom line is that Deere has earned that premium because of its pivot into AI, which is likely to pay off in the long term. The company has become part of the larger connectivity story, as evidenced by its inclusion in the SpaceX S-1 filing, where Deere is listed as a Starlink customer.
That alone is enough reason to hold DE and to consider buying the stock on this dip, which is now about 20% in the last three months. But if the company is right about its profit outlook, there could be some choppiness before the payoff. The company’s safe dividend that yields 1.2% won’t be confused for a high-yield dividend, but it is well capitalized and does provide shareholder value while the company’s fortunes reverse.
That’s still the belief of analysts who had a consensus price target of $655.45 on DE heading into earnings. With the post-earnings dip, that would equal more than 20% upside, which would grow if the pullback continues.
For now, momentum is on the bearish side. However, DE is now approaching oversold territory, which could mean that sellers are getting exhausted. That's supported by the lighter-than-average volume following the earnings release.
Should You Invest $1,000 in Deere & Company Right Now?Before you consider Deere & Company, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Deere & Company wasn't on the list.
While Deere & Company currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.
Deere is rated Buy, viewed as undervalued, with strong AI-driven and cyclical tailwinds supporting double-digit growth and potential benchmark outperformance. DE posted its fifth consecutive double-beat, with small ag & turf and construction & forestry segments delivering 16% and 29% YoY sales growth, respectively. Management anticipates 15–20% sales growth in key segments and margin expansion, while share repurchases and debt reduction remain priorities.
The stock market simply isn't going to go up all the time. Even during the best of times, the broader market will have an off week or month; you just never know. Volatility isn't fun for anyone, but it's how long-term investors can get a leg up on the market.
You see, when the tide goes out and the broader market declines, blue chip stocks, the best companies on Earth, often go down, too. That's a huge opportunity for investors because there may not be anything wrong with the business itself -- it's just the market doing what the market does.
The recent pullback has created some solid buying opportunities. Here are two blue chip industrial stocks that currently look like two of the best buys you can make.
Image source: Getty Images.
1. Lockheed Martin The world's largest defense manufacturer, Lockheed Martin (LMT 1.52%), isn't a get-rich-quick stock, but it's a blue chip company in every sense of the term. History has shown that the world seldom remains peaceful for long. As unfortunate as that is, it creates a steady demand for the various weapons, vehicles, aircraft, and other technologies Lockheed Martin sells to the U.S. and its military allies.
The ongoing war in the Middle East has depleted arsenals, prompting the U.S. Department of Defense to sign a multi-year agreement to triple and quadruple production of various missiles. Lockheed Martin also produces the F-35 Lightning II fighter jet, the most expensive aircraft program in modern history, and a core revenue driver going forward as it continues to bring new aircraft into service and rack up maintenance and repair services.
Today's Change
(
-1.52
%) $
-8.35
Current Price
$
540.33
While Lockheed Martin's backlog did shrink slightly from the prior quarter, it remains very healthy at $186 billion after the first quarter of 2026. The Trump Administration has made it clear that the government aims to continue spending heavily on defense over the next few years, so it wouldn't be a surprise to see the backlog grow again in the near future.
Analysts estimate the company will grow its earnings by an average of 18% annually over the next three to five years, which should translate to capital gains and healthy dividend increases. Lockheed Martin stock currently trades well below its 52-week high, which, in this case, has priced shares at an attractive valuation at under 18 times 2026 earnings estimates. Plus, investors get a solid 2.6% dividend yield at the current share price.
2. Deere & Co Farming is the backbone of a growing global population. Deere & Co (DE +1.55%) is an industry titan known primarily for its famous John Deere machinery brand. Today, Deere designs and manufactures machines for farming, forestry, and construction. It also sells complementary products and services, such as software and aftermarket support. Its financial segment, which finances machinery purchases for customers, has also become a tremendous profit center.
Tractors and other machines are expensive purchases, so Deere's business fluctuates with farmers' financial health. Deere's business is in a somewhat in-between place right now. Forestry and construction have been relatively resilient, driven by commercial construction activity. However, the agricultural business has struggled as farmers grapple with lower commodity prices, higher input costs, and higher interest rates, which have reduced income and increased financing costs.
Today's Change
(
1.55
%) $
8.84
Current Price
$
577.48
Deere's top and bottom lines are lower than during the agriculture boom a few years ago. This weakness has weighed on the stock as well. Yet, Deere trades at a price-to-earnings ratio of 29 times 2026 earnings estimates. That might seem high, but this often happens with cyclical stocks, where depressed earnings, the denominator in the P/E ratio, drive the stock's valuation higher.
Often, it's smart to buy cyclical companies during industry downturns, because their stocks tend to recover when business picks up again. There are still many growth opportunities in the artificial intelligence age, including increasingly autonomous and intelligent machinery that can help increase farm output with fewer people. Analysts see Deere growing earnings by an average of more than 15% annually over the next three to five years, making Deere a blue chip stock to buy on its current weakness.
Recognition reflects John Deere's highest supplier rating, highlighting Thoughtworks' role in delivering high-quality digital solutions for manufacturing
, /PRNewswire/ -- Thoughtworks, a global technology consultancy that integrates design, engineering and AI to drive digital innovation, today announced it has been recognized by Deere & Company (NYSE: DE) as a Partner-level supplier in the company's Achieving Excellence Program.
The Achieving Excellence Program, established by Deere to foster long-term collaboration and operational excellence across its global supplier network, evaluates suppliers annually against a rigorous performance criteria. Partner-level status is Deere's highest supplier rating, awarded to organizations that demonstrate exceptional performance in areas such as quality, delivery, value creation and relationship management, along with a strong commitment to continuous improvement.
The recognition reflects Thoughtworks' role supporting Deere's digital transformation across multiple lines of business including Aftermarkets & Customer Success, Manufacturing, Data & AI, Enterprise Infrastructure and Operations.
"John Deere is one of the world's most respected manufacturers, with a long-standing reputation for innovation, quality and customer focus," said Manish Sateeja, SVP and head of automotive and manufacturing for North America at Thoughtworks. "Achieving Partner-level status reflects the strength of our relationship and our shared focus on delivering meaningful outcomes for Deere's customers. By aligning our engineering excellence with Deere's industry leadership, we are helping modernize critical digital experiences to support Deere's long-term growth and continued success."
Thoughtworks' recognition underscores its deep expertise in the manufacturing sector, where it partners with leading organizations to modernize legacy systems, unlock data-driven decision-making, and create differentiated customer experiences at scale.
Supporting Resources:
Learn more about Thoughtworks' Manufacturing and Engineering industry expertise. Learn more about Thoughtworks' agentic development platform, AI/works™. About Thoughtworks
Thoughtworks is a global technology consultancy that integrates design, engineering and AI to drive digital innovation. We are over 10,000 people strong across 47 offices in 18 countries. For 30+ years, we've delivered extraordinary impact together with our clients by helping them solve complex business problems with technology and culture as the differentiator.
Media contact:
Marsh Abraham
Head of Public Relations for Americas
Email: [email protected]
Momentum Dips Amid Changing TrendsThe stock’s short-term and medium-term price trends have shifted into downward trajectories, reflecting a nearly 8.77% decline over the past month.
Despite this immediate technical weakness, the company‘s Benzinga Edge Stock Rankings‘ trend for the long-term remains positive.
Analysts Point To Structural ResilienceWhile short-term momentum fades, institutional sentiment provides a stabilizing counterweight. Freedom Broker reiterated its “Hold” rating for the heavy machinery manufacturer and raised its price target from $570 to $590, projecting an 11.49% upside from the current level.
According to the analyst firm, 2026 marks the cyclical trough for large agricultural equipment. However, Freedom Broker noted that Deere is generating higher structural profitability at this cycle low compared to previous cycles.
This elevated profitability is largely driven by increased demand for construction equipment and ongoing technology monetization.
Macro Headwinds Cloud Agricultural OutlookThe divergence between Deere’s fading momentum and analyst optimism is unfolding against a backdrop of complex macroeconomic pressures. Although Deere reported strong second-quarter earnings—delivering $6.55 per share against estimates of $5.73—management warned of continued weakness.
The company expects the large agriculture markets in the U.S. and Canada to decline by 15% to 20% this year. High interest rates and soaring input costs are actively suppressing farmer sentiment.
Specifically, the conflict in Iran is driving up global fuel and fertilizer prices, placing heavy financial burdens on growers worldwide. Nevertheless, Deere's core fundamentals maintain stability, supported by a strong Benzinga edge growth ranking of 84.33.
DE Stock Gains In 2026DE shares have risen by 13.66% on a year-to-date basis, and it is higher by 8.60% in the six months. Meanwhile, the Nasdaq Composite index was up 13.38% YTD.
Over the last year, DE has advanced by 2.62%; however, it was lower by 8.77% over the month. It has traded in a 52-week range of $433.00 to $674.19, and it was higher by 0.57% in premarket on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
Thoughtworks Recognized as John Deere Partner-Level Supplier in 2026 Achieving Excellence Program PR Newswire
CHICAGO, May 27, 2026
Recognition reflects John Deere's highest supplier rating, highlighting Thoughtworks' role in delivering high-quality digital solutions for manufacturing
, /PRNewswire/ -- Thoughtworks, a global technology consultancy that integrates design, engineering and AI to drive digital innovation, today announced it has been recognized by Deere & Company (NYSE: DE) as a Partner-level supplier in the company's Achieving Excellence Program.
The Achieving Excellence Program, established by Deere to foster long-term collaboration and operational excellence across its global supplier network, evaluates suppliers annually against a rigorous performance criteria. Partner-level status is Deere's highest supplier rating, awarded to organizations that demonstrate exceptional performance in areas such as quality, delivery, value creation and relationship management, along with a strong commitment to continuous improvement.
The recognition reflects Thoughtworks' role supporting Deere's digital transformation across multiple lines of business including Aftermarkets & Customer Success, Manufacturing, Data & AI, Enterprise Infrastructure and Operations.
"John Deere is one of the world's most respected manufacturers, with a long-standing reputation for innovation, quality and customer focus," said Manish Sateeja, SVP and head of automotive and manufacturing for North America at Thoughtworks. "Achieving Partner-level status reflects the strength of our relationship and our shared focus on delivering meaningful outcomes for Deere's customers. By aligning our engineering excellence with Deere's industry leadership, we are helping modernize critical digital experiences to support Deere's long-term growth and continued success."
Thoughtworks' recognition underscores its deep expertise in the manufacturing sector, where it partners with leading organizations to modernize legacy systems, unlock data-driven decision-making, and create differentiated customer experiences at scale.
Supporting Resources:
Learn more about Thoughtworks' Manufacturing and Engineering industry expertise.Learn more about Thoughtworks' agentic development platform, AI/works™.About Thoughtworks
Thoughtworks is a global technology consultancy that integrates design, engineering and AI to drive digital innovation. We are over 10,000 people strong across 47 offices in 18 countries. For 30+ years, we've delivered extraordinary impact together with our clients by helping them solve complex business problems with technology and culture as the differentiator.
Media contact:
Marsh Abraham
Head of Public Relations for Americas
Email: [email protected]
View original content to download multimedia:https://www.prnewswire.com/news-releases/thoughtworks-recognized-as-john-deere-partner-level-supplier-in-2026-achieving-excellence-program-302782477.html
Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this agricultural equipment manufacturer have returned -6.2%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has lost 5.3%. 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.
For the current quarter, Deere is expected to post earnings of $5.01 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.
The consensus earnings estimate of $18.05 for the current fiscal year indicates a year-over-year change of -2.4%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $22.99 indicates a change of +27.4% from what Deere 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, Deere 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
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Deere, the consensus sales estimate of $10.85 billion for the current quarter points to a year-over-year change of +4.7%. The $41.03 billion and $44.62 billion estimates for the current and next fiscal years indicate changes of +5.4% and +8.8%, respectively.
Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.
Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere 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 Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
MOLINE, Ill., May 27, 2026 /PRNewswire/ -- The Deere & Company (NYSE: DE) Board of Directors today declared a quarterly dividend of $1.62 per share payable August 10, 2026, to stockholders of record on June 30, 2026.
On June 02, 2026, we present a detailed DCF analysis for Deere & Co DE , a company that has shown a year-to-date price increase of 16.9% and a 1-year price increase of 8.6%. Despite recent fluctuations, the stock remains a topic of interest for investors.
DCF Earnings-based intrinsic value of $566.57 vs current price of $542.43 (margin of safety: 1.7%) DCF FCF-based intrinsic value of $160.30 vs current price (second opinion indicating significant overvaluation) GF Score™ of 91/100, indicating high reliability of the DCF inputs What Is DE Worth? DCF Earnings-Based Model The DCF earnings-based model for Deere & Co utilizes a two-stage approach to estimate its intrinsic value. The first stage considers a high growth phase lasting 10 years, where we expect earnings per share (EPS) to grow at a rate of 20.4% annually. The second stage reflects a terminal growth phase where growth slows to 4% for the subsequent 10 years. The discount rate applied to both stages is 11%, derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $17.65 10-Year Growth Rate 20.4% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 20.4%, discounted at 11% $283.59 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $282.98 Intrinsic Value Growth + Terminal $566.57 When comparing the current price of $542.43 to the intrinsic value of $551.56, we find that Deere & Co is fairly valued with a margin of safety of 1.7%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow.
For further details, visit the DE DCF Calculator.
What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the free cash flow (FCF) DCF model yields an intrinsic value of $160.30. This significant disparity when compared to the earnings-based valuation suggests that the FCF model indicates that Deere & Co is significantly overvalued, with a margin of safety of -238.4%. This divergence highlights the importance of considering multiple valuation perspectives when assessing a stock's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Deere & Co is calculated at $379.87, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. In this case, all three models present differing views on valuation, with the earnings-based model suggesting fair value, the FCF model indicating significant overvaluation, and the GF Value™ suggesting the stock is overvalued. For more information, visit the GF Value™ page.
What Does DE's GF Score™ Tell Us? The GF Score™ for Deere & Co is an impressive 91/100, indicating strong potential for long-term returns based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns, making this score a valuable indicator for investors.
Metric Rating GF Score™ 91/100 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 10/10 With a predictability rank of 3/5 stars, this indicates that the DCF model is reasonably reliable for Deere & Co. For more insights, visit the DE stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings-based model, the DCF FCF model, and the GF Value™, we conclude that Deere & Co is currently fairly valued according to the earnings-based model, significantly overvalued according to the FCF model, and overvalued based on the GF Value™. This mixed consensus suggests a cautious approach for investors considering this stock.
For the full DCF analysis, visit the DE DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is DE's intrinsic value based on DCF?
earnings-based $551.56, FCF-based $160.30
Is DE overvalued or undervalued?
Based on the DCF earnings model, DE is fairly valued; however, the FCF model indicates it is significantly overvalued, and GF Value™ suggests it is overvalued as well.
How reliable is the DCF model for DE?
With a predictability rank of 3/5 stars, the DCF model is reasonably reliable for DE.
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].
As the market faces more and more concentration risk from the dominance of just a few AI hyperscalers, investors are on the lookout for ETF tools to diversify their portfolios while still chasing upside. Thematic ETFs may provide one such toolset, a notable ETF segment for many years – in particular disruptive versions of thematic ETFs can help meet that goal, with Fidelity Investments offering particularly useful options.
Key Takeaways:
The ETF wrapper’s flexibility and easy tradability makes ETFs powerful portfolio building blocks. Fidelity Investments’ disruptive ETF suite uses flexible, in-depth, active ETFs to target areas like tech, automation, and more. That focus could make the ETF suite a solid option to give investors bespoke allocations that fit their plans. The firm, for example, offers the Fidelity Disruptive Technology ETF (FDTX). FDTX charges a 50 basis point (bps) fee to actively invest in disruptive technologies. Specifically, the fund actively invests in innovative firms engaged in segments like big data, AI, cybersecurity, e-commerce, and more.
That has helped FDTX return 46.3% over the last 12-month period, according to ETF Database data. The ETF offers exposure to the key names that investors want, while also rising disruptive names that could prove important differentiators in tech overall.
See More: Get Enhanced International Equities Exposure in FENI Perhaps the most useful funds out there are those offering to disrupt other categories. Automation, for example, represents massive potential to benefit from AI advancements. The Fidelity Disruptive Automation ETF (FBOT) charges the same 50 bps fee and applies a similar approach to disruptors in automation.
FBOT invests in key names like Nvidia (NVDA) as well as key machinery names like Deere & Company (DE). The strategy has returned 53.6% over the last 12-month period. It has produced strong numbers over the last month, as well. The strategy invests in firms with the potential to displace incumbents or disrupt important market segments over time. That includes segments like robotics, pneumatic systems, autonomous driving, and AI firms.
Fidelity also offers communications, financials, medicine, and overall disruptors through thematic ETFs within the suite. Overall, that can help investors calibrate their desired type of equities exposure. Rather than try to find the one perfect fund, stacking together disruptive ETFs can offer greater flexibility — and potentially upside.
For more news, information, and strategy, visit the ETF Investing Content Hub.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this agricultural equipment manufacturer have returned -2%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has remained unchanged. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
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.
For the current quarter, Deere is expected to post earnings of $4.82 per share, indicating a change of +1.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $18.1 points to a change of -2.2% from the prior year. Over the last 30 days, this estimate has changed +0.5%.
For the next fiscal year, the consensus earnings estimate of $22.83 indicates a change of +26.1% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.8%.
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, Deere 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
Revenue Growth ForecastEven 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 Deere, the consensus sales estimate of $10.78 billion for the current quarter points to a year-over-year change of +4.1%. The $41.13 billion and $44.69 billion estimates for the current and next fiscal years indicate changes of +5.7% and +8.7%, respectively.
Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.
Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere 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.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Alphabet's cybersecurity unit Mandiant and Google Threat Intelligence Group said Thursday they had identified an active compromise and extortion campaign targeting Oracle's PeopleSoft enterprise software, which they attributed to the hacking group ShinyHunters.
The market sold off Oracle Corporation's $70 billion CapEx guide for FY27 (plus $20B-$25B of prepayments), but my real concern is whether Oracle can turn that spend into revenue on time. I can live with weak free cash flow in a buildout, but I need clean signs that ORCL's prepayments, shipments, and revenue timing are holding together. I see increasing risks of broader datacenter delays in the U.S. If this risk affects Oracle (a big if), it may delay its RPO conversion targets.
Oracle (ORCL 0.02%), an enterprise software and cloud services provider, closed Thursday at $184.10, down 8.53%. The stock dropped after its fiscal Q4 earnings beat was overshadowed by guidance for sharply higher AI-related capital spending and negative free cash flow. Trading volume reached 63.1 million shares, about 128% above its three-month average of 27.6 million shares. Oracle IPO'd in 1986 and has grown 290,861% since going public.
How the markets moved todayThe S&P 500 rose 1.73% to finish Thursday at 7,393, while the Nasdaq Composite gained 2.54% to close at 25,810. Within software and infrastructure names, Microsoft closed at $390.34, down 1.77%, and Salesforce finished at $166.49, falling 2.59%, outperforming Oracle’s steeper decline.
What this means for investorsBy most measures, Oracle’s Q4 results were excellent:
sales grew 21%adjusted EPS increased 20%remaining performance obligations nearly quintupledmanagement guided for 34% sales growth in 2027However, Oracle also announced that it would have to spend heavily on capex to help fund its booming AI business. Management announced it would be spending $70 billion in net cash on capex in 2027 -- compared to the $32 billion it earned in cash from operations this year.
To help fill this funding gap, the company stated it plans to raise $20 billion from debt and $20 billion from at-the-market equity offerings, which could slightly dilute shareholder value, further prompting today’s decline.
While this soaring capex amplifies Oracle’s risk, it’s more or less the cost of doing business in today’s AI-focused world, so investors need to determine if that factor will keep them from investing in a given technology stock or not.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Oracle, and Salesforce. The Motley Fool has a disclosure policy.
"It's not the print, it's the spending that continues to concern investors," says Daniel Newman of Futurum when discussing Oracle's (ORCL) earnings. The cloud company posted an earnings beat and massive backlog totaling more than $630 billion but is doing so through raising more debt funding.
Oracle reported "record" results while guiding to further margin deterioration; the stock sank more than 10% the next morning.
, /PRNewswire/ -- Investors in Oracle Corp. (NYSE: ORCL) over 10% of their holdings after the Company's Q4 FY 2026 earnings release on June 10, 2026, revealed a gap between the headline numbers management emphasized and the underlying financial picture. Shareholders who suffered a loss are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
Oracle reported "record" fourth quarter and full year 2026 earnings. However, company announced plans to increase CapEx to up to $95 billion in fiscal 2027, compared with $55.66 billion in fiscal 2026 and against analyst expectations for shy of 68 billion. As a result of this increased spend, management further revealed that "2027 gross margin will step down," adding to the existing "around 5 points" reduction in margins reported for fiscal 2026.
To support this continued AI buildout, Oracle further announced plans to raise another $40 billion for fiscal 2027 against a projected revenue of only $70 billion for the year full year.
If you purchased Oracle shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
SueWallSt -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the ORCL Investigation
Q: Who is eligible to participate in the ORCL investigation?A: Investors who purchased ORCL stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Oracle made materially false or misleading statements regarding its financial performance, margin deterioration, and need to raise further capital. When the full financial picture emerged, the stock price declined sharply.
Q: What do ORCL investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What happens after I contact SueWallSt?A: An attorney will review your trading history at no cost and provide an initial assessment of your potential recovery.
Q: What if I already sold my ORCL shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought ORCL and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Oracle has discovered a vulnerability in some of its PeopleSoft software that is remotely exploitable without authentication and can result in remote code execution if exploited by hackers, the company said in a Wednesday (June 10) security alert.
The vulnerability (CVE-2026-35273) is in Oracle PeopleSoft PeopleTools and may affect Oracle PeopleSoft Enterprise Applications, according to the security alert.
“We consider implementation of the recommended mitigations to be a high-priority risk reduction measure and strongly recommend immediate action to address the identified exposure,” the security alert said. “Oracle always recommends that customers remain on actively-supported versions and apply all Critical Patch Updates, Critical Security Patch Updates and Security Alerts without delay.”
Mandiant and Google Threat Intelligence Group (GTIG) addressed the exploit in a Thursday (June 11) blog post, saying they identified an active compromise and extortion campaign targeting the Oracle PeopleSoft application infrastructure.
The companies said they notified more than 100 global organizations that could be vulnerable to this exploit and found that most were in the United States and 68% were within the higher education sector.
They also said they found data leaks of stolen organization data published on a hacking group’s site on Tuesday (June 9).
Advertisement: Scroll to Continue
Mandiant and GTIG also shared in their blog post a post from the hacking group’s website in which the group claimed to have stolen billing and payment records, credit card and payment details, student finance data and other sensitive data.
TechCrunch reported Thursday that the hacking group claimed to have breached more than 100 organizations that use PeopleSoft servers.
These reports follow several other recent data breaches and other cyberattacks.
Toymaker Hasbro reported in April that it had uncovered a breach, had taken some of its systems offline, and believed it could take weeks to resolve the cyberattack.
It was reported in February that 12.4 million records of customer data were stolen from car shopping site CarGurus and posted by a hacking group.
In October 2025, it was reported that a hacking group claimed to have stolen 1 billion records from cloud databases hosted by Salesforce and was attempting to extort Salesforce and the companies to which that data belonged.
Cleo Capital Managing Director Sarah Kunst delivered a pointed warning on CNBC on Thursday, June 11, saying that with the mood around Oracle (NYSE:ORCL | ORCL Price Prediction), “I feel like it’s 1999 again. We’ve got the Knicks and the Spurs in the final. We have Oracle being sort of the name on the street. But it’s not going to end like last time, right?” Kunst was framing Oracle as an AI infrastructure trade that may be running out of steam.
Her comments landed as Oracle shares opened sharply lower the morning after fiscal Q4 results. The stock closed the day at $184.10, an 8.53% drop from the prior close of $201.26, capping a 12.62% weekly slide. Kunst noted the stock is down more than 47% from its 52-week high in September, when it peaked at over $340.
The OpenAI Overhang Kunst zeroed in on Oracle’s deep entanglement with OpenAI as one of the biggest risk factors hanging over the stock today. “They went from being sort of the front runner into kind of the dark horse of this unholy trinity of IPOs. And so I think that the OpenAI weakness is going to continue to have a not-great effect on Oracle,” she said.
Oracle’s backlog is heavily levered to OpenAI exposure, and Remaining Performance Obligations (RPOs) swelled to $638 billion, up 363% YoY, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Funding that buildout is expensive: free cash flow turned negative by $23.69 billion in FY2026 against CapEx of $55.66 billion, and management plans to raise roughly $40 billion in FY2027 through debt and a $20 billion at-the-market equity program. Total liabilities now sit at $218.7 billion versus shareholders’ equity of just $43.1 billion.
The SaaSpocalypse Thesis Kunst’s second argument moves beyond Oracle’s balance sheet to the broader software cycle. “I think that people are looking at this terrible consumer sentiment, gas prices, and midterms coming up, and they are looking for places to cut costs. And so it’s a good time to go dig around your SaaS spend receipts and say, can we tighten our belts a little bit?”
The macro backdrop supports the call. University of Michigan Consumer Sentiment registered 49.8 in April 2026, below the recessionary threshold of 60, while WTI crude sits at $95.00 per barrel, in the 81st percentile of its 12-month range.
In Oracle’s report, Kunst noted that legacy software sales declined by about 2%, cloud software underperformed expectations, and combined software revenues grew by only about 2%. That tepid software growth, sitting alongside Cloud Infrastructure growth of 84% in Q3 and 93% in Q4, points to a business increasingly dependent on a small set of hyperscale AI contracts.
What to Watch with Oracle Oracle still trades at a premium multiple for a company of its size, with a forward P/E of 27. The company’s Q4 results showed EPS of $2.11 on revenue of $19.18 billion, with management guiding for $90 billion in revenue for FY2027 and non-GAAP EPS of $8.05.
Wall Street remains broadly bullish, with 36 buy or strong buy ratings against just one sell and an average price target of $255.18. Kunst’s structural warning runs the other way. If OpenAI’s commercial trajectory wobbles or enterprise SaaS budgets contract, Oracle’s RPO conversion story becomes the variable that matters most. Investors should keep an eye on cloud bookings disclosure, the pace of the $40 billion financing plan, and any further softness in software license revenue as the FY2027 narrative gets tested.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Oracle’s NYSE: ORCL price action has been under pressure in 2026 and may remain so indefinitely. However, there are forces in play suggesting this company is metamorphosing from its legacy self.
Once an important but niche player in tech, it is transforming into a blue-chip tech leader central to AI infrastructure. Investors know the firm is becoming central to AI; the next catalyst for share prices is likely to be the business ramp it drives.
Get Oracle alerts:
Oracle's Explosive Growth Is Back-EndedOracle’s AI revenue surge is back-ended. While 2026 results are arguably tepid relative to other AI plays, its backlog continues to swell.
Oracle Today
$184.01 -0.09 (-0.05%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$134.57▼
$345.72Dividend Yield1.09%
P/E Ratio31.56
Price Target$268.27
Like “The Blob” of old-school science fiction, this company is digesting long-term contracts, some with front-loaded payments for GPU hardware, and is about to grow exponentially. Most contracts begin delivering revenue in 2027; backlog conversion will accelerate by year’s end and again in the subsequent year, underpinning robust revenue, cash flow, and earnings growth for Oracle.
As it stands, the company’s remaining performance obligation (RPO) grew by 15% sequentially to nearly $640 billion. Up 363% compared to last year, the RPO amounts to seven years' revenue at the projected FY2027 pace and is just the tip of the iceberg. Backlog is expected to grow in subsequent quarters, driving renewals as contracts expire and laying the groundwork for years of highly visible, accelerating growth.
Oracle Outperforms, Guides for AccelerationOracle had a solid quarter, with revenue growing by 20.8%, 60 basis points better than expected. Weakness in the Software segment was overlooked, as it was expected and ultimately due to the same trends that are increasing cloud business. Legacy customers are shifting to cloud-based services, which now account for 51.5% of the business and are gaining share quarter over quarter. Cloud business grew by 47%, underpinned by a 47% increase in infrastructure services. Software-as-a-Service (SaaS) grew by 10% and is likely to continue improving as inference and automation gain traction.
Margin was another strength. Oracle’s margin was pressured by increased spending tied to its datacenter buildout, but by far less than anticipated, and not enough to offset newly gained revenue leverage and operational efficiencies. The net result was record earnings per share, both GAAP and adjusted, accompanied by a 54% increase in full-year operating income.
The only bad news was that free cash flow was negative, but that is a near-term problem that will sort itself out over time. Negative cash flow is being caused by the datacenter buildout, which is driven by backlog; buildout will slow in subsequent quarters as backlog converts to revenue. The only question is the exact timing of ballooning RPO recognition, and it gets closer by the quarter.
Guidance was another near-term headwind for stock price action. While bullish, including a forecast for sequential growth, year-over-year acceleration, and better-than-expected Q1 earnings, the full-year forecast aligned with expectations, triggering a sell-the-news event.
Cautious Analysts Point to Long-Term OpportunityOracle Stock Forecast Today12-Month Stock Price Forecast:
$268.27
47.89% Upside
Moderate Buy
Based on 40 Analyst Ratings
Current Price$181.40High Forecast$400.00Average Forecast$268.27Low Forecast$160.00Oracle Stock Forecast Details
The initial analyst response was muted, with many stating concern over spending plans and debt.
The company plans to raise an additional $40 billion in capital this year, including debt and equity, nearly doubling the capital raised in fiscal year 2026.
However, analysts are looking ahead to RPO recognition and visibility, leaving ratings and price targets unchanged.
Trends are positive, including increased coverage, a 78% Buy-side bias to the Moderate Buy rating, and a 50% upside at the consensus.
The consensus target would put this market near record levels; the trends point to an above-consensus price topping out at $400, representing 100% upside.
Market action following the earnings release reflected the impact of near-term headwinds, with the price falling nearly 10% in after-hours trading. The question is what happens next—and a rebound looks likely. The setup suggests ORCL is in the midst of a reversal, underpinned by its AI outlook.
ORCL shares may take a little time to regain traction, but a rebound is likely by summer’s end. Results from other hyperscalers, including Alphabet NASDAQ: GOOGL, Microsoft NASDAQ: MSFT, and Amazon NASDAQ: AMZN, are due by the end of July, and all are expected to reaffirm datacenter and AI spending plans. Longer-term, the 5x P/E multiple versus the 10-year earnings forecast suggests a 500% stock price increase is possible, relative to June’s support target.
Oracle’s biggest risk this year is execution. Backlog is one thing, but converting it into revenue takes time and capital. The capital is a risk on its own, offset to some degree, but still a headwind for profitability this year. Delays and missteps will be reflected in the stock’s price, and the resulting price movements may be exaggerated. Institutions and analysts provide support, but institutional activity has been only modestly bullish over the trailing 12 months and may evaporate in the face of financial distress signals.
Should You Invest $1,000 in Oracle Right Now?Before you consider Oracle, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Oracle wasn't on the list.
While Oracle currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Shares of Oracle (NYSE:ORCL | ORCL Price Prediction) took a major hit on Thursday, with shares stumbling close to 9% after reporting reasonable sales growth. Undoubtedly, the big headlines weren’t the quarterly results themselves, but news that the firm is going to spend even more on AI infrastructure.
Undoubtedly, hefty spending has been a big weight on the firm’s shoulders. And, to the distaste of most investors, it’s about to become that much heavier, with the firm disclosing plans to raise another $40 billion from debt and equity issuance in 2027. Indeed, there’s already a lot of debt sitting on the balance sheet. Combined with the shareholder dilution worries to ponder, it certainly feels like selling now and asking questions later is the move.
Oppenheimer’s new target entails a 50% gain after Thursday’s dip Even after a tough number, Oppenheimer’s reiteration of its outperform rating, I think, has to be encouraging at a time like this. It’s been a brutal pivot, but it’s one that could ultimately pay off. At the time of this writing, Oppenheimer sports a $275.00 price target on Oracle shares.
That represents a huge 50% gain from Thursday’s closing price. And the real opportunity could lie in how much more selling there will be in the days to follow. In any case, I think Oppenheimer analyst Timothy Horan is right to stay upbeat about the company as its fundamentals continue to improve.
OCI is a serious player in AI infrastructure, and the growth (up 93% year over year) from the latest quarter was difficult to look past. In time, OCI is going to contribute a growing slice of the pie, and as AI demand stays off the charts, there’s every reason to stay the course with Oracle, even as the stakes get higher.
Apart from massive RPO numbers and evidence of improved operating efficiencies, the company seems to be generating explosive RPOs relative to the CapEx it’s spent so far. Of course, there’s a big difference between RPOs and actual sales. But given the caliber of big-name customers that look good for the money, and the unprecedented “Mad Max” turn in the AI infrastructure boom, I certainly wouldn’t discount the RPO growth as much as the market is.
Oracle’s going to be investing more in AI — and that’s a good thing In my view, the $40 billion fundraising plan really shouldn’t be anything all that surprising when you consider how invested the company is in getting a front-row seat to that AI revolution. The company has already swam to great lengths to give its new growth engine (and its future) in Oracle Cloud Infrastructure (OCI) its all.
And when you consider that some of the other hyperscalers, including the likes of Alphabet‘s (NASDAQ:GOOG) Google, are already looking to raise more capital to fund AI, I think it’s actually a positive that Oracle is committing more, even though it’s going to make some investors even more woozy. At the end of the day, Oracle has been a riskier play on the rise of next-generation AI infrastructure.
And, in my humble opinion, it shouldn’t look to pull punches, especially when you consider the soaring backlog and its position to be a heftier provider of AI compute as the market shifts gears from semiconductors and AI chips to the token providers. That encompasses more than just AI chips, including energy, which are the real chokepoints of the boom.
The bottom line With shares on the descent again, wiping out the big gains posted back in late May, I do think there’s an opportunity to get more AI aggression for a lower price of admission. It’s either you’re all aboard the AI pivot or you’re not. And after the post-earnings sell-off, I do think a lot of those who were on the fence have now made up their minds.
As shares move lower and the implied upside on Oppenheimer’s $275.00 price target swells further, I think it might be time to go against the grain with the hyper-volatile name while it’s still misunderstood. Oppnehimer’s Timothy Horan reaffirmed Oracle because its quarter was solid and the fundamentals are improving. He’s right on the money.
As for the spending to come, I’d say that’s a good thing, given the trajectory of RPOs, and that’s regardless of how most other investors are taking it.
Artificial intelligence is reshaping nearly every corner of the technology industry, but it is also transforming corporate finance. Companies are no longer just competing for customers or market share. They are competing for computing power, data centers, semiconductors, and energy infrastructure.
Building that foundation requires enormous amounts of capital, and the U.S.’s largest technology companies are increasingly turning to the bond market to get it. The numbers coming out of 2026 suggest this investment cycle is unlike anything investors have seen before.
Big Tech’s Borrowing Spree Is Breaking Records According to Dealogic data, five of the largest technology companies in the world — Alphabet (NASDAQ:GOOG | GOOG Price Prediction), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Oracle (NYSE:ORCL) — have already issued a combined $159 billion in corporate bonds through the first five months of 2026.
That figure exceeds the entire 2025 total by $51 billion, or 47%, despite the year not yet reaching its halfway point. The Wall Street Journal says that’s even larger as a percentage of the economy than the 1850’s railroad expansion.
The pace becomes even more striking when viewed over a longer timeframe.
Period Total Debt Issued 2020-2024 Combined ~$150 Billion 2025 ~$108 Billion 2026 (So Far) $159 Billion In other words, these five companies have already borrowed more in five months than they did during the entire five-year period from 2020 through 2024.
That’s not normal corporate financing activity. It’s evidence of a massive investment cycle underway.
AI Is Driving the Demand for Capital Here is where much of this money is going. Alphabet, Amazon, Meta, Microsoft, and Oracle are all racing to build AI infrastructure. That includes data centers, networking equipment, advanced processors, and power generation capacity.
Recent earnings reports from these companies have already pointed to soaring capital expenditures. Amazon alone expects capital spending to approach $200 billion this year, while Microsoft, Alphabet, and Meta are each committing hundreds of billions more to AI-related projects.
Oracle stands out as perhaps the clearest example of the trend. The company has issued $43 billion in debt since last September, and it just announced plans to raise $40 billion more through debt and equity financing — including a $20 billion share sale announced earlier.
That borrowing reflects Oracle’s aggressive push into cloud computing and AI infrastructure, areas where it is attempting to gain ground against larger rivals such as Amazon Web Services and Microsoft’s Azure platform.
Surprisingly, investors appear comfortable funding this expansion despite higher interest rates than those that prevailed during much of the last decade.
The Bond Market Is Betting on AI’s Future Morgan Stanley expects global AI-related debt issuance to exceed $570 billion in 2026, more than double previous records.
That forecast highlights an important point for investors: this borrowing surge is not isolated to a handful of companies. It reflects a broader belief that AI will generate returns large enough to justify today’s spending.
Granted, higher debt levels always introduce risk. If AI adoption slows or expected returns fail to materialize, companies could face pressure from rising interest expenses and slower cash-flow growth.
That said, these aren’t heavily indebted businesses scrambling for financing. Alphabet, Microsoft, Amazon, and Meta collectively generate hundreds of billions of dollars in annual operating cash flow. They are borrowing from a position of financial strength, not weakness, though Oracle did report negative free cash flow for the year.
The bond market appears to recognize that distinction.
Key Takeaway In short, Big Tech’s record-breaking debt issuance is perhaps less a warning sign than a measure of the AI arms race currently underway. Debt tends to be less risky than equity. The credit markets are viewing the hyperscalers as a safe bet as the situation would have to significantly deteriorate before they lose money
For investors, the key question isn’t whether these companies are borrowing more. The real question is whether the AI infrastructure being built today generates enough revenue tomorrow to justify the spending.
So far, both management teams and bond investors appear confident the answer is yes. Investors, though, may want to be more circumspect.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Oracle Corporation faces structurally lower margins from its new data center and AI inference business lines. Reliance on OpenAI-related RPO is considered highly risky, as we OpenAI's value as zero. Oracle's sharply deteriorating debt trajectory poses an existential risk to the company.
I am reiterating a “buy” rating on Oracle (ORCL) despite a 10% post-earnings selloff, as its backlog surged 363% YoY to $638B, surpassing all hyperscalers. FY27 capex is projected at $90-95B, requiring $40B in new debt and equity, diluting shareholders on top of growing leverage. But, this is necessary investment to accelerate backlog conversion. OCI revenue is accelerating, with FY27 guidance for 120% growth to $34B and total cloud revenue expected to expand 58–64% YoY in Q1, demonstrating no slowdown in sight.
Key Takeaways Oracle stock fell 8-105 after Q4 despite record $19.2B revenue and strong cloud growth.ORCL's $55.7B capex and $23.7B negative free cash flow raised investor concerns.Oracle plans $40B financing, while margins face pressure from data center ramp timing. Oracle (ORCL - Free Report) shares took a sharp hit on June 11, 2026, tumbling between 8% and 10% in a single session following the release of fourth-quarter fiscal 2026 results the previous evening. Shares of Oracle have lost 2.3% in the past six-month period.
The stock, which closed at approximately $201 before the earnings announcement, slid toward the $180-$184 range as investors reacted negatively to the company's aggressive capital spending plans and a large equity fundraise that raised dilution concerns. The pullback dragged the stock further from its 52-week high of $345.72, though it remains above its 52-week low of $134.57. The selloff, coming despite a broad-based earnings beat, underscores a market that is increasingly scrutinizing the cost of Oracle's AI ambitions rather than celebrating the revenue momentum.
ORCL’s 6-Month Performance
Image Source: Zacks Investment Research
ORCL’s Q4 Results: A Beat With CaveatsOracle posted record fourth-quarter total revenues of $19.2 billion, up 21% in USD, driven by record cloud revenues of $9.9 billion, up 47%. Within the cloud, infrastructure revenues surged 93% to $5.8 billion, while cloud applications grew 10% to $4.1 billion. GAAP EPS rose 21% to $1.45, and non-GAAP EPS climbed 24% to $2.11. For the full fiscal year, total revenues reached a record $67.4 billion, up 17%, with cloud revenues rising 39% to $34.0 billion. On the AI front, Oracle disclosed that the Oracle Multicloud AI Database grew 404% in the fiscal fourth quarter, making it the company's fastest-growing business ever.
Beyond revenues, Oracle reported a significant AI engagement milestone. Remaining Performance Obligations ended the quarter at $638 billion, up 363% year over year and $85 billion sequentially from the end of the fiscal third quarter. On the product side, Oracle's June 2026 OCI AI update highlighted new capabilities, including the addition of Cohere Rerank 4 and expanded multimodal support, as well as expanded OCI Enterprise AI availability in the UAE Central (Abu Dhabi) region, signaling continued geographic buildout of its cloud infrastructure.
Capex Overshoot and Negative Free Cash Flow Are Real HeadwindsThe headline numbers, however, were overshadowed by a financial structure that alarmed investors. Oracle reported $23.7 billion in negative free cash flow for fiscal 2026, with capital expenditures jumping 162% to $55.7 billion — exceeding the company's own $50 billion projection for the year. In the fiscal fourth quarter alone, the company spent $15.9 billion on capital expenditures. Adding to investor unease, Oracle announced plans to raise approximately $40 billion through a combination of debt and equity financing in fiscal 2027, including a previously announced $20 billion at-the-market equity issuance. The prospect of meaningful share dilution, layered on top of already deeply negative free cash flow, is a near-term overhang that investors cannot easily dismiss.
Compounding the concern, management flagged during the earnings call that gross margins will step down due to the timing for the ramp-up of data center projects into their full revenue contribution. This signals that profitability pressure will linger into fiscal 2027 before the contracted backlog begins converting meaningfully into earnings.
Forward Guidance: Growth Intact Amid Execution RiskOracle's guidance for the first quarter of fiscal 2027 calls for total revenue growth of 27-29% and total cloud revenue growth of 57-63% in constant currency, with non-GAAP EPS of $1.72-$1.76. For the full fiscal year, Oracle confirmed prior revenue guidance of $90 billion and raised non-GAAP EPS guidance to $8.05, representing 18% growth. The $90 billion revenue target implies a significant step-up from the $67.4 billion reported in fiscal 2026 and meeting it will require flawless execution across data center ramp-ups, GPU procurement and customer delivery timelines. Oracle also confirmed plans to bring almost one gigawatt of computing power online in the current quarter — roughly equivalent to the total for all of fiscal 2026.
The Zacks Consensus Estimate for ORCL's fiscal 2027 earnings is pegged at $8 per share, marking an upward revision of 0.1% over the past 30 days. The earnings figure suggests 0.83% decline over the figure reported in fiscal 2026.
The $638 billion RPO is a genuine long-term catalyst. However, a significant portion of it involves large-scale AI contracts where customers prepaid for GPU purchases or supplied their own GPUs to Oracle, which alters the traditional economics of how that backlog translates into free cash flow and earnings per share. Investors eyeing a near-term re-rating will need to wait for evidence that the backlog converts cleanly.
Valuation and Competitive LandscapeFrom a valuation standpoint, ORCL stock is currently trading at a premium with a trailing 12-month Price/Earnings ratio of 31.05x, which is higher than the Zacks Computer - Software industry average of 24.37x. Oracle carries a Value Score of D.
ORCL’s Premium Valuation Raises Concern
Image Source: Zacks Investment Research
Against this backdrop, Oracle faces intensifying competition from three hyperscalers who are simultaneously its cloud rivals and, in some cases, its infrastructure partners. Amazon (AMZN - Free Report) is aggressively pursuing AI vertical integration through AWS, while Microsoft (MSFT - Free Report) reported strong Azure momentum and confirmed capital expenditures of approximately $190 billion for 2026. Alphabet (GOOGL - Free Report) -owned Google Cloud is pushing a full-stack AI approach built on custom TPUs, with Gemini Enterprise recording 40% quarter-over-quarter growth in paid monthly active users and processing more than 16 billion tokens per minute via direct API use. Amazon has expanded Bedrock with Titan Ultra 2, featuring a two-million-token context window, while Microsoft launched Azure Confidential AI with hardware-backed enclaves, reinforcing its position in regulated industries like finance and healthcare. Google Cloud's growing TPU-as-a-service offering, Amazon's recent $50 billion OpenAI commitment that expands AW' AI model access through Bedrock, and Microsoft Azure's deeply embedded Copilot ecosystem collectively represent formidable competition that could challenge Oracle's ability to win new workloads beyond its existing customer base.
ConclusionOracle's record fourth-quarter results confirm that the AI infrastructure opportunity is real and the demand is substantial. However, with deeply negative free cash flow, rising equity dilution, compressing near-term margins and an expensive valuation relative to peers, ORCL warrants a Hold stance for now. Investors should monitor how efficiently Oracle converts its record $638 billion backlog into sustainable earnings before adding exposure. ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways The earnings revisions trend remains positive, similar to what we experienced in the last two quarters.Energy has seen the largest set of upward earnings revisions, with Tech and Basic Materials also benefiting. Q2 earnings are currently expected to be up 22.2% on 10.9% higher revenues YoY. Oracle (ORCL - Free Report) shares were down following very strong quarterly results that showed impressive cloud momentum and steady customer diversification beyond OpenAI in its AI-centric backlog.
The negative market reaction reflected its ever-rising capital intensity, with capex for the year raised once again, pushing Oracle’s free cash flows further into negative territory. Oracle plans to raise about $40 billion to fund its capex this year through a combination of debt and equity instruments, with dilution risk becoming a bigger risk for the stock. Management expects peak capex outlays through the following fiscal year, with the pace declining in the outer years as the installed base matures.
Unlike the dramatic AI-driven acceleration in Oracle’s quarterly numbers, Adobe's (ADBE - Free Report) report showed the company monetizing AI through higher engagement, greater user retention, and premium features, in contrast to many free competing offerings that lack enterprise controls, licensing protections, and workflow integration.
Adobe shares have lost more than two-thirds of their value over the last two years, as many in the market are skeptical of the company’s ability to maintain profitability in the coming AI world. Uncertainty around leadership transition adds to these headwinds.
The Oracle report was for its fiscal quarter ending in May, which we count as part of the June-quarter tally. We now have five S&P 500 members, including Oracle and Adobe, that have reported such fiscal May-quarter results. The others are Costco, AutoZone, and Lennar. By the time the big banks report in mid-July, we will have seen Q2 results from almost two dozen index members with fiscal quarters ending in May, including Jabil, CarMax, and Accenture this week.
Looking at 2026 Q2 as a whole, total S&P 500 earnings are expected to increase by +22.2% from the same period last year on +10.9% higher revenues.
The chart below shows Q2 earnings and revenue growth expectations in the context of growth over the preceding four quarters and what is expected over the next three quarters.
Image Source: Zacks Investment Research
The revisions trend remains positive, similar to what we experienced in the last two quarters as well. Aggregate earnings estimates for the S&P 500 index have steadily moved higher since the quarter got underway in April, as the chart below shows.
Image Source: Zacks Investment Research
Q2 earnings estimates have increased for 5 of the 16 Zacks sectors since the quarter began, offsetting negative revisions in the remaining 11 sectors.
The Energy sector has enjoyed the most obvious earnings outlook upgrade, with aggregate earnings estimates for the sector up more than +80% since the start of April. Earnings for the Zacks Energy sector are currently expected to increase by +116.4% from the year-earlier period. Other sectors enjoying favorable estimate revisions include Tech, Basic Materials, Utilities, and Business Services.
Excluding the positive revisions to either the Energy or Tech sectors, the aggregate Q2 revisions trend would have been negative.
Of the 11 sectors whose estimates have been under pressure since the start of April, the ones experiencing the most negative revisions are Transportation, Medical, Consumer Discretionary, Autos, and Construction.
The chart below shows the overall earnings picture on a calendar-year basis.
Image Source: Zacks Investment Research
In terms of index ‘EPS’, the above growth rates imply $319.96 per index ‘share’ in 2026, up $264.38 in 2025.
The revisions trend for full-year 2026 is even more positive than we noted in the case of 2026 Q2, with estimates for 11 of the 16 Zacks sectors going up since the start of March 2026. The Energy, Tech, and Basic Materials sectors are the most notable beneficiaries of the improving earnings outlook, but estimates have increased across the board.
The sectors that have suffered negative estimate revisions since the start of March are Transportation, Autos, Consumer Discretionary, Consumer Staples, and Medical.
The chart below shows how full-year 2026 aggregate earnings estimates have evolved over the past year.
Image Source: Zacks Investment Research
2026 Q2 Earnings Season Scorecard
We are in that part of the reporting cycle when the preceding earnings season (2026 Q1, in this case) has not yet fully ended, even as the coming earnings season (2026 Q2) has already begun, as we noted earlier.
Through Friday, June 12th, we have seen fiscal May-quarter results from 5 S&P 500 members – Oracle, Adobe, Costco, AutoZone, and Lennar. Total earnings for these 5 companies are up +18.6% from the same period last year on +11.5% higher revenues, with 80% beating EPS estimates and 60% beating revenue estimates.
The comparison charts below put the growth rates for the companies that have reported with what we had seen from this same group of companies in other recent periods.
Image Source: Zacks Investment Research
The comparison charts below put the Q1 EPS and revenue beats percentages for this group of companies relative to what we had seen from them in other recent periods.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>2026 Q2 Earnings Season Preview: What to Expect
Every year in late June, the largest U.S. banks get the results of their stress tests, which are designed by the Federal Reserve to determine the capital strength of a bank in the event of a recession or some other economic shock or stress.
The tests were put in place via the Dodd-Frank bill following the 2007-2009 financial crisis to make sure that banks could navigate a similar economic meltdown.
The results of the tests determine how much of a capital buffer that banks should build into their finances -- called the stress capital buffer.
Image source: Getty Images.
To summarize, Dodd-Frank established a minimum amount of capital that large banks must have through the Common Equity Tier 1, or CET1, ratio. If the bank loses a lot of capital during the annual hypothetical stress tests, then the Fed imposes a higher stress capital buffer on top of the minimum requirements so that it can better handle such a scenario. If the bank performed well and handled the stress test, it would get a lower stress capital buffer add-on.
Investors should know that this is a key time for bank stocks, as the stress tests could provide a boost for the stock, or detract from it. This year is particularly interesting for a few reasons.
Bank stocks surged last year on strong stress test results Last year the major banks passed the stress test with flying colors, with the stress capital buffers of the largest banks decreasing significantly from 2024. It may have had something to do with a stress test that was considered easier and less rigorous than those in the past.
Of the biggest banks, Bank of America (BAC +1.46%), JPMorgan Chase (JPM +2.28%), and Wells Fargo (WFC +1.61%) all saw their buffers drop to the bare minimum of 2.5%. Wells Fargo saw the biggest drop, from 3.70%, while JPMorgan Chase and Bank of America fell from 3.30% and 3.20%, respectively. Morgan Stanley (MS +0.65%), Goldman Sachs (GS +2.62%), and Citigroup (C +1.27%) also saw declines, but not to the bare minimum.
This brought down the CET1 ratios for the banks, which had immediate benefits. One, it shows that the bank is healthy; two, it means that less needs to be locked up as an equity cushion so that money could be allocated elsewhere; and three, it allows banks to return more capital to shareholders via dividend increases or buybacks.
Today's Change
(
2.28
%) $
7.16
Current Price
$
320.65
Last year, all of the banks boosted their dividends in the third quarter of 2025, except JPMorgan Chase, which did it in Q4. Also, several large banks did share buybacks following the stress tests. These are favorable events for investors.
The banks generally saw their stock prices jump following the stress tests, and they finished the year strong. The six largest banks posted stock price returns of more than 25% in 2025, with Citigroup leading the way at 66%.
What to expect this year This year, the test is considered tougher than last year's, meaning the Fed concocted a more adverse scenario in which unemployment spikes to 10%.
However, the Fed voted back in February to freeze the buffers for 2026, so the numbers won't change, no matter how badly a bank fails or how fantastically it succeeds. The reason? The Fed is taking public feedback on new calculations models for the tests. Among the potential changes is a rolling two-year average to smooth out the potential for volatility. The freeze is in place until 2027 as these changes to the model are finalized.
So, in a way, this is good because the reduced buffers from last year remain in place, meaning the banks won't have to raise their capital cushions. That, in turn, frees up funding to reward shareholders with dividend increases. Since 2020, Goldman Sachs, Bank of America, Wells Fargo, and Morgan Stanley have boosted their dividends in the third quarter, while Citigroup and JPMorgan Chase have done so since 2022.
However, if the stress test results aren't great for a bank, those results will be known when the Fed releases them by June 30. And even if the buffers don't change, investors will know that the bank is at a higher risk than it was the previous year. That could potentially put a damper on dividends and buybacks.
Last year, the results were released on Friday, June 27. This year, look for them around June 25 or 26.
One difference is that most large bank stocks are down year to date this year and trading at lower valuations compared to last year. If stress test results are strong, the lower valuations could be an additional catalyst for these stocks.
SAN FRANCISCO--(BUSINESS WIRE)--For many Americans, buying a home is the largest financial commitment they will ever make. But with the annual homebuying season kicking into full gear, a new Wells Fargo quiz reveals a troubling knowledge gap: most would-be buyers don’t understand some basic facts about purchasing a home.
Developed by Wells Fargo and conducted nationwide by Ipsos, the Ipsos survey tested more than 2,000 aspiring first-time homebuyers on fundamental mortgage topics including budgeting, interest rates, and the homebuying process. The findings reveal a stark disconnect: almost seven in 10 participants said they felt knowledgeable about buying a home—but out of the twelve questions asked on the quiz, 75% of respondents answered only four questions, or fewer, correctly.
In fact, of the 2,012 respondents who identified as prospective homeowners, only one person answered all the questions correctly. This knowledge gap could have real-life financial consequences as small misunderstandings can lead to higher monthly payments, delayed purchases, or missed opportunities.
“Homebuying isn’t just a milestone—it’s a long‑term financial commitment with implications that can last decades,” said Serhat Oztop, head of Home Lending, Wells Fargo. “When buyers overestimate what they know, they’re more likely to make decisions that cost them time, money, or both. This quiz highlights just how important clear, trusted guidance is before moving forward with this financial decision.”
Key Knowledge Gaps With Real‑World Impact
The quiz revealed critical gaps in basic homebuying knowledge:
Just 25% of respondents knew when to apply for a mortgage. Nearly 90% of respondents didn’t understand what’s involved in closing costs (the largest blind spot in the quiz). 88% of respondents were not clear on the first steps to take when beginning the homebuying process. 80% of respondents would make a critical mistake when submitting a competitive offer on a home, such as sharing a pre-approval letter for the maximum approval amount with a seller. Where Buyers Are Getting Information and What That Means
When asked where they turn for homebuying guidance, most participants said they rely primarily on friends and family, real estate websites, online listings, and search engines, while only a third of respondents chose lenders or financial professionals.
Younger prospective buyers were especially likely to cite social media, influencers, and AI tools, while older participants leaned more on banks, lenders, and financial advisors. The findings raise questions about the quality, consistency, and completeness of the information many potential buyers are using to guide critical homebuying decisions.
A Wake‑Up Call, Not a Deterrent
Despite the knowledge gaps, the quiz experience itself appeared to resonate. Nearly two‑thirds of participants said it left them feeling motivated, encouraged, or more aware of what they still need to learn.
For many, the results served as a reality check—underscoring both the complexity of the homebuying process and the value of accessible, easy‑to‑understand education before making one of life’s biggest financial decisions.
“This quiz wasn’t about passing or failing,” added Oztop. “It was about helping people see where they might be vulnerable—and giving them the confidence that comes from being truly prepared.”
About the 2026 Wells Fargo Home Lending Quiz
The Wells Fargo Home Lending Quiz was conducted online by Ipsos from March 5–13, 2026, among 2,012 U.S. adults ages 18–65 who have never owned a home, are considering buying within the next five years, and report some level of financial readiness. Final data was not weighted.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.2 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com
LinkedIn: https://www.linkedin.com/company/wellsfargo
For many Americans, buying a home is the largest financial commitment they will ever make. But with the annual homebuying season kicking into full gear, a new Wells Fargo quiz reveals a troubling knowledge gap: most would-be buyers don’t understand some basic facts about purchasing a home.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260603271682/en/
Developed by Wells Fargo and conducted nationwide by Ipsos, the Ipsos survey tested more than 2,000 aspiring first-time homebuyers on fundamental mortgage topics including budgeting, interest rates, and the homebuying process. The findings reveal a stark disconnect: almost seven in 10 participants said they felt knowledgeable about buying a home—but out of the twelve questions asked on the quiz, 75% of respondents answered only four questions, or fewer, correctly.
In fact, of the 2,012 respondents who identified as prospective homeowners, only one person answered all the questions correctly. This knowledge gap could have real-life financial consequences as small misunderstandings can lead to higher monthly payments, delayed purchases, or missed opportunities.
“Homebuying isn’t just a milestone—it’s a long‑term financial commitment with implications that can last decades,” said Serhat Oztop, head of Home Lending, Wells Fargo. “When buyers overestimate what they know, they’re more likely to make decisions that cost them time, money, or both. This quiz highlights just how important clear, trusted guidance is before moving forward with this financial decision.”
Key Knowledge Gaps With Real‑World Impact
The quiz revealed critical gaps in basic homebuying knowledge:
Just 25% of respondents knew when to apply for a mortgage.
Nearly 90% of respondents didn’t understand what’s involved in closing costs (the largest blind spot in the quiz).
88% of respondents were not clear on the first steps to take when beginning the homebuying process.
80% of respondents would make a critical mistake when submitting a competitive offer on a home, such as sharing a pre-approval letter for the maximum approval amount with a seller.
Where Buyers Are Getting Information and What That Means
When asked where they turn for homebuying guidance, most participants said they rely primarily on friends and family, real estate websites, online listings, and search engines, while only a third of respondents chose lenders or financial professionals.
Younger prospective buyers were especially likely to cite social media, influencers, and AI tools, while older participants leaned more on banks, lenders, and financial advisors. The findings raise questions about the quality, consistency, and completeness of the information many potential buyers are using to guide critical homebuying decisions.
A Wake‑Up Call, Not a Deterrent
Despite the knowledge gaps, the quiz experience itself appeared to resonate. Nearly two‑thirds of participants said it left them feeling motivated, encouraged, or more aware of what they still need to learn.
For many, the results served as a reality check—underscoring both the complexity of the homebuying process and the value of accessible, easy‑to‑understand education before making one of life’s biggest financial decisions.
“This quiz wasn’t about passing or failing,” added Oztop. “It was about helping people see where they might be vulnerable—and giving them the confidence that comes from being truly prepared.”
About the 2026 Wells Fargo Home Lending Quiz
The Wells Fargo Home Lending Quiz was conducted online by Ipsos from March 5–13, 2026, among 2,012 U.S. adults ages 18–65 who have never owned a home, are considering buying within the next five years, and report some level of financial readiness. Final data was not weighted.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.2 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at [url="]www.wellsfargo.com [/url]
LinkedIn: https://www.linkedin.com/company/wellsfargo
View source version on businesswire.com: https://www.businesswire.com/news/home/20260603271682/en/
Wells Fargo & Co (NYSE:WFC, XETRA:NWT)'s recent share price underperformance may have created an attractive entry point for investors, according to Bank of...
Wells Fargo & Co (NYSE:WFC, XETRA:NWT)'s recent share price underperformance may have created an attractive entry point for investors, according to Bank of America, which argued that the bank's valuation has fallen more sharply than its underlying fundamentals would suggest.
The firm noted that Wells Fargo shares are down about 15% year-to-date, compared with a roughly 4% gain for its peer group. Shares traded at about $79 on Wednesday afternoon.
Bank of America wrote that the stock's de-rating appears to reflect increasing investor skepticism over management's ability to achieve its long-term profitability targets.
According to the firm, Wells Fargo is currently trading at approximately 10.1 times estimated 2027 earnings and 1.7 times projected 2027 tangible book value, below the roughly 2.2 times tangible book value multiple the bank reached last December, when investors were more fully pricing in management's goal of generating a 17% to 18% return on tangible common equity (ROTCE).
Bank of America maintained that a path to an 18% ROTCE, potentially by 2028, remains achievable through a combination of operational and financial initiatives rather than reliance on a single catalyst.
The analysts outlined several factors that could support higher profitability, including capital optimization, expansion across investment banking, credit cards and wealth management, redeployment of expenses toward revenue-generating activities, balance sheet repricing, and improved branch productivity.
They also argued that Wells Fargo compares favorably with larger regional and money-center peers, noting that banks such as JPMorgan Chase, PNC Financial Services and US Bancorp currently operate at higher profitability levels. Bank of America wrote that it sees no structural reason why Wells Fargo should continue to lag those institutions, citing the bank's scale advantages and manageable capital requirements.
The bank’s analysts further suggested that recent investor concerns surrounding credit quality and potential merger and acquisition activity may be overstated. Bank of America characterized recent credit issues as largely idiosyncratic rather than systemic and wrote that the likelihood of a large, dilutive acquisition remains low.
Looking ahead, the firm indicated that Wells Fargo's second-quarter results could help rebuild investor confidence, assigning the stock a $95 price objective, which it estimated represents roughly 20% upside from current levels.
Wells Fargo (WFC - 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 biggest U.S. mortgage lender have returned -2.2%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Financial - Investment Bank industry, which Wells Fargo falls in, has gained 1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Wells Fargo is expected to post earnings of $1.71 per share, indicating a change of +11% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.84 points to a change of +8.9% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $7.78 indicates a change of +13.7% from what Wells Fargo is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Wells Fargo.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Wells Fargo, the consensus sales estimate of $21.65 billion for the current quarter points to a year-over-year change of +4%. The $87.56 billion and $92.63 billion estimates for the current and next fiscal years indicate changes of +4.6% and +5.8%, respectively.
Last Reported Results and Surprise HistoryWells Fargo reported revenues of $21.45 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $1.56 for the same period compares with $1.27 a year ago.
Compared to the Zacks Consensus Estimate of $21.73 billion, the reported revenues represent a surprise of -1.3%. The EPS surprise was -1.27%.
Over the last four quarters, Wells Fargo surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
Wells Fargo 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 Wells Fargo. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Bank of America (BAC +1.46%), a major provider of banking and financial services, closed Thursday at $54.17, up 3.38%. The stock moved higher during Thursday’s regular session as investors responded to plans to launch cross-border real-time payments next quarter and are watching how this initiative supports growth in transaction banking.
How the markets moved todayS&P 500 (^GSPC +0.50%) added 0.41% to finish Thursday at 7,584.31, while the Nasdaq Composite (^IXIC +0.31%) slipped 0.09% to 26,830.96. Among diversified banks, industry peers JPMorgan Chase (JPM +2.28%) closed at $310.89 (up 3.34%) and Wells Fargo (WFC +1.61%) finished at $81.62 (up 3.74%), reflecting broad strength in large financials.
What this means for investorsBank of America shares increased alongside other major banks, supported by the company’s announcement of a cross-border real-time payments service launching next quarter. This service will accelerate international payments through BofA’s Swift and CashPro channels, offering corporate and financial institution clients an additional option for cross-border transactions.
The rollout may enhance Bank of America’s competitiveness in global transaction banking, though overall earnings remain driven by net interest income and market activity. In the first quarter, the bank reported $8.6 billion in net income and $1.11 in diluted earnings per share. CEO Brian Moynihan expects second-quarter trading revenue to increase by about 15% year over year. Investors will be watching whether the payments service achieves corporate client adoption as core banking trends continue to support earnings.
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
The largest U.S. banks are building their own blockchain payment network, a direct response to crypto firms that are pushing deeper into core banking territory under a crypto-friendly Trump administration.
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other major commercial banks plan to launch a tokenized deposit network in the first half of 2027. The network will be operated by The Clearing House, the real-time payment company co-owned by the same banks. A blockchain vendor has not yet been chosen.
The Clearing House CEO David Watson told The Wall Street Journal the industry faces a “radically different” future around on-chain payments and finance, calling the move “a big move for the banks.”
The network will connect traditional payment rails with digital asset infrastructure, allowing tokenized deposits to settle instantly across a blockchain around the clock. The Clearing House expects large multinational corporations to be the primary early adopters, with use cases spanning programmable treasury operations, real-time liquidity management and cross-border payments.
Banks have been bracing for stablecoin competition for some time, particularly as pending legislation left room for interest-like structures on stablecoins, which is a feature banks oppose. Tokenized deposits offer a path around that threat. Unlike stablecoins, tokenized deposits are simply traditional bank deposits represented as digital tokens. They carry the same credit-risk profile, regulatory treatment and accounting standards as conventional deposits, and they keep funds inside the banking system.
Citi’s head of services, Shahmir Khaliq, said the network represents “another step that effectively cements” the role banks play in financing, money management and capital markets.
Advertisement: Scroll to Continue
Not everyone is treating this as an urgent market need. Bank of America’s head of global payments solutions, Mark Monaco, acknowledged that clients aren’t necessarily “beating down the door” for tokenized deposits, but said the network would ensure banks are positioned when demand builds. “With any sort of new adoption, it takes time,” Monaco said.
JPMorgan already runs an internal tokenized deposit system called JPM Coin and recently extended a version of that product to Base, a public blockchain connected to Coinbase, for institutional clients. The new Clearing House network would put that capability in reach of banks across the U.S.
The banks have not ruled out issuing stablecoins if demand emerges. For now, the tokenized deposit network is the industry’s answer — and its opening move in a payments landscape that is changing faster than anyone expected.
As volatility again rattles large swathes of the cryptocurrency market, the largest financial institutions in the United States are moving ahead with plans for a shared tokenized deposit network.
The network will be operated by The Clearing House and is backed by JPMorganChase, Bank of America, Citi, Wells Fargo and other major banks. It’s targeted for launch in the first half of 2027.
The timing is notable because for many years, stablecoins dominated conversations about a digital dollar. Policymakers debated regulatory frameworks. Payment providers and FinTechs rushed to establish positions.
Yet as PYMNTS CEO Karen Webster wrote in January, the long-term winner may not be stablecoins at all, but tokenized deposits that preserve the regulatory structure and economics of commercial banking while delivering the programmability and around-the-clock settlement capabilities associated with blockchain-based money.
The recent developments surrounding TCH and the participating banks envision a platform capable of supporting programmable treasury operations, liquidity management and cross-border payments using tokenized deposits that remain inside the regulated banking system. Unlike stablecoins, tokenized deposits remain bank liabilities and continue to reside on bank balance sheets. They would be a central determinant of why banks are investing.
Webster wrote that tokenized deposits are not an alternative form of money but rather a modernization of money already held within commercial banks. They maintain existing ownership, compliance and supervisory frameworks while allowing institutions to move money across blockchain infrastructure.
Advertisement: Scroll to Continue
JPMorganChase has already expanded its Kinexys tokenized deposit capabilities, while Citi has advanced tokenized treasury initiatives and HSBC has introduced tokenized deposit services for corporate clients.
A Familiar Divide Emerges As tokenized deposits gain traction, we may tread some familiar ground, reminiscent of the structural divide that characterized the rollout of real-time payments.
When TCH launched the RTP® network in 2017, adoption initially centered on large financial institutions. The Federal Reserve’s subsequent launch of the FedNow® Service in 2023 broadened access across the banking ecosystem and gave small institutions another route into instant payments.
As for the echoes of the past, as far as tokenized deposits are concerned, TCH and its bank-owned tokenized deposit initiative seemingly have an initial target market of large institutions, multinational corporations and complex treasury operations.
In addition, there is FIS and its newly launched Lyriq platform.
FIS described Lyriq as infrastructure that enables regulated financial institutions to issue, manage and settle digital money while keeping deposits on their own balance sheets. The platform supports tokenized deposits and integrates with existing banking systems while providing continuous settlement capabilities.
In a conversation with Webster published Monday (June 1), FIS Co-President of Banking Solutions Jim Johnson said banks increasingly need payment infrastructure that operates in real time and supports new forms of programmable money. He specifically cited stablecoins and tokenized deposits as examples of instruments that traditional payment systems are not designed to accommodate.
That framing could be extended to some of the key concerns that dominated the early years of real-time payments.
The difference is that this time, the conversation centers on digital money itself rather than simply payment speed.
Who Serves the Rest of the Market? The crucial question is whether tokenized deposits become concentrated among the largest institutions or spread broadly across regional banks, community banks and FinTech platforms.
The RTP-FedNow experience suggests the answer will ultimately be both.
Large-bank networks are often first to market because they can aggregate transaction volume and justify infrastructure investment. Broader adoption typically requires platforms capable of serving institutions with different operating models, technology stacks and customer bases.
Johnson told Webster that banks increasingly risk losing visibility into payment flows if they fail to modernize issuer and processing infrastructure. Payment rails are becoming strategic assets rather than back-office utilities.
Tokenized deposits may follow the same path as real-time payments. The largest institutions will establish the initial network effects, while technology providers extend access across the rest of the banking ecosystem.
The industry’s debate would shift away from whether banks should embrace stablecoins and toward how quickly banks can redesign deposits for a world in which settlement, liquidity management and treasury operations increasingly operate around the clock.
That is why the most important developments in digital money may not be happening in crypto markets at all. They may be unfolding inside the banking system.
For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.
Key Takeaways Major U.S. banks are building a tokenized deposits network via the Clearing House for a 2027 launch.BAC, JPM and WFC explore stablecoin entry while backing tokenized deposits for faster 24/7 settlement.C plans to explore stablecoin issuance alongside tokenized deposit infrastructure. A consortium of major U.S. banks, including JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and Wells Fargo (WFC - Free Report) , is preparing to launch a shared tokenized deposit network. The move is likely to reshape the future of digital payments and banking infrastructure.
The initiative, expected to go live in the first half of 2027, will be operated by The Clearing House. It is designed to bring traditional bank deposits onto blockchain-based payment rails while keeping them within the regulated banking system.
The planned network will allow tokenized deposits, digital representations of conventional bank deposits, to move across blockchain infrastructure with near-instant settlement and 24/7 availability. Unlike stablecoins issued by private crypto companies, tokenized deposits remain liabilities of regulated banks and continue to operate under existing banking, accounting and compliance frameworks. This marks a critical advantage for banks, enabling innovation without introducing the regulatory uncertainties often associated with crypto-native payment products.
Here’s Why This Shift Matters for Banks’ FutureThe move comes as banks face growing competition from stablecoin issuers and blockchain-based financial platforms. Lately, stablecoins have gained traction for cross-border payments, treasury management and on-chain transactions, raising concerns among traditional lenders that customer deposits could gradually migrate away from the banking sector. By offering a blockchain-enabled alternative, JPMorgan, Bank of America, Citigroup, Wells Fargo and other large banks aim to deliver the speed, efficiency and programmability of digital assets while keeping customer funds within the regulated financial system.
Several major banks have already signaled deeper interest in digital assets. Citigroup is exploring the possibility of issuing its stablecoin while also investing in tokenized deposit infrastructure and digital asset services. JPMorgan has expanded its blockchain initiatives, building on years of experience with proprietary digital payment systems. Bank of America has also indicated that it may enter the stablecoin market when regulatory conditions and customer demand support such a move.
Banks’ push into tokenized deposits is not just a defensive response to crypto-native competition; it is also an opportunity to modernize core financial infrastructure. A tokenized deposit network could enable faster settlement, lower processing costs and more efficient cross-border payments, particularly for corporate clients that routinely move large sums across markets.
Strategically, tokenized deposits could help banks remain central to the emerging tokenization economy, wherein deposits, securities and other financial assets increasingly move on blockchain-based networks. As institutional blockchain adoption expands, banks are positioning tokenized deposits as a link between traditional finance and digital assets, helping them preserve their roles in payments, lending and capital markets.
Road Ahead for Banks & BlockchainAlthough demand for tokenized deposits is still developing, major banks appear determined to build the infrastructure ahead of broader adoption. For JPMorgan, Wells Fargo, Bank of America and Citigroup, the goal is not simply to follow a crypto trend. It is to protect the foundation of their business.
Deposits remain the backbone of banking, while payments continue to be a critical source of customer relationships and revenues. By creating a shared tokenized deposit network, large banks can respond to stablecoin competition without giving up their central role in the financial system.
If successful, tokenized deposits could become an important bridge between traditional finance and blockchain technology. They may not replace stablecoins, but they could give banks a powerful alternative like faster payments, regulated deposits and a stronger foothold in the next generation of financial infrastructure.
Wells Fargo (WFC - Free Report) closed the most recent trading day at $80.96, moving -1.2% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.86%.
The biggest U.S. mortgage lender's stock has climbed by 8.33% in the past month, exceeding the Finance sector's gain of 1.34% and the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is scheduled to release its earnings on July 14, 2026. The company is forecasted to report an EPS of $1.71, showcasing a 11.04% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $21.65 billion, reflecting a 3.98% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.84 per share and revenue of $87.56 billion, which would represent changes of +8.92% and +4.62%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Wells Fargo is currently a Zacks Rank #3 (Hold).
Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 11.97. For comparison, its industry has an average Forward P/E of 13.39, which means Wells Fargo is trading at a discount to the group.
We can additionally observe that WFC currently boasts a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 0.96 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
A Wells Fargo bank logo is pictured through glass in New York City, U.S., June 4, 2025. REUTERS/Kylie Cooper Purchase Licensing Rights, opens new tab
June 9 (Reuters) - U.S. banking giant Wells Fargo's (WFC.N), opens new tab net interest income will see a "step up" in the current quarter, Chief Financial Officer Mike Santomassimo said at an investor conference on Tuesday.
The forecast is likely to be welcomed by investors worried whether lenders can continue to grow interest income as expectations for rate cuts by the U.S. Federal Reserve have faded. Its stock was last up 1.2% in morning trading.
Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Although higher rates typically bolster lending margins, a prolonged period of elevated borrowing costs risks slowing loan growth and economic activity, creating fresh challenges for banks.
"This quarter, you're obviously going to see a step up in NII," Santomassimo said, adding that the bank remained "very confident" it would achieve its full-year forecast of about $50 billion in net interest income.
"Loan growth (is) performing well," Santomassimo said at the Morgan Stanley U.S. Financials Conference. "That is looking like it's going to be potentially a little bit better than what we had modeled as we go through the year, but we'll see."
He added that consumers remain very resilient and stable.
Analysts on average expect the bank's net interest income to increase about 5.6% to $12.36 billion in the second quarter, according to estimates compiled by LSEG.
The bank's NII - the difference between what it earns on loans and pays out on deposits - rose 5% to $12.1 billion in the first quarter.
GROWTH OPPORTUNITIESA string of blockbuster IPOs, buoyant equity markets and improving corporate sentiment are expected to drive a surge in fees for banks this year.
Traditionally more known for its lending and consumer banking operations than investment banking, Wells Fargo has spent the past several years expanding the business to compete with other Wall Street titans on big-ticket deals.
"We're continuing to see that market share increase each year, but still more to do there," Santomassimo said. "When you look at it by product, certainly the equity capital markets and advisory side are places that we know we can do better. We have a strong debt capital markets business."
Among its investment banking wins this quarter is a spot on the underwriting syndicate for SpaceX's IPO, which is expected to raise a record $75 billion.
"There should be opportunity really across the product set, but we're really excited about what we can do in the commercial banking client base," Santomassimo said.
Reporting by Manya Saini in Bengaluru and and Nupur Anand in New York; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Manya covers the most influential U.S. financial institutions, from Wall Street’s largest banks and card networks to leading asset managers and fintech companies. She also reports on late-stage venture capital fundraises, initial public offerings on U.S. exchanges and regulatory developments shaping the cryptocurrency industry. Her work appears across the finance, markets, business and future of money sections of the Reuters website. She holds a bachelor’s degree in political science from the University of Delhi and a master’s in journalism from the Symbiosis Institute of Media and Communication.
Nupur Anand is a U.S. banking correspondent at Reuters in New York. She focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand covered banking and finance in India for more than a decade, chronicling the collapse of major lenders and turmoil at digital banks and cryptocurrencies. She has a degree in English literature from Delhi University and a postgraduate diploma in journalism from the Indian Institute of Journalism & New Media in Bangalore. Anand is also an award-winning fiction writer.
Wells Fargo Chief Financial Officer Mike Santomassimo said Tuesday (June 9) that the bank’s net interest income (NII) will increase this quarter and that the bank will achieve its full-year forecast of about $50 billion in NII, Reuters reported Tuesday.
“This quarter, you’re obviously going to see a step up in NII,” Santomassimo told an investor conference, according to the report. He added that Wells Fargo is “very confident” it will achieve the NII that it forecasts.
Santomassimo added that loan growth is performing well and that consumers remain resilient, per the report.
Wells Fargo said in its latest earnings release, which was issued April 14, that its net interest income increased by 5% year over year during the first quarter.
The bank said the increase was driven by “higher deposit balances and lower deposit costs, improved results in our Markets business, higher loan and investment securities balances, and fixed rate asset repricing, partially offset by the impact of lower interest rates on floating rate assets.”
In a presentation released at the time, Wells Fargo said its expected 2026 net interest income of about $50 billion was unchanged from its previous guidance. The bank added that its NII performance would be determined by “the absolute level of rates and the shape of the yield curve; deposit balances, mix and pricing; and loan demand.”
Advertisement: Scroll to Continue
PYMNTS reported June 1 that the Federal Deposit Insurance Corp.’s Quarterly Banking Profile for the first quarter found that the banking industry’s net interest income declined by 0.8% from the prior quarter while its noninterest income rose 5.8%.
The FDIC said that net interest margin declined to 3.31%, down eight basis points from the previous quarter. Asset yields fell more quickly than funding costs, compressing the spread between what banks earn on loans and securities and what they pay for deposits and other funding sources, the report said.
FDIC Chairman Travis Hill said during a press briefing about the Quarterly Banking Profile: “This quarter, the earnings growth was driven by noninterest income, which grew particularly at the largest banks due to market volatility, which was partly due to the conflict in Iran.”
Key Takeaways WFC shares gained nearly 1.3% after the CFO highlighted a stronger Q2'26 NII outlook.WFC expects a "step up" in Q2 and reaffirmed a $50B full-year NII target.WFC sees loan growth and stable deposits supporting its interest income trajectory. Shares of Wells Fargo & Company (WFC - Free Report) rose nearly 1.3% after its chief financial officer (CFO), Mike Santomassimo, expressed confidence in the company’s net interest income (NII) outlook at the Morgan Stanley U.S. Financials Conference on Tuesday.
Providing an update on the company’s NII outlook, Santomassimo stated that NII will see a “step up” in the second quarter of 2026 and reiterated Wells Fargo’s expectation of generating approximately $50 billion of NII for the full year. Management also noted that the full-year outlook remains largely unchanged despite shifts in the interest-rate environment since the beginning of the year.
The company highlighted that loan growth continues to perform well and could be modestly better than previously anticipated through the remainder of the year. Management also noted favorable deposit trends, driven by growth in interest-bearing deposits and stable noninterest-bearing deposit balances.
The outlook reflects continued momentum from the first quarter of 2026, when NII increased 5.2% year over year to $12.09 billion. As such, the Zacks Consensus Estimate for second-quarter NII is pegged at $12.36 billion, suggesting a 5.6% increase from the prior-year quarter.
How Are Other Firms' Likely to Fare in Terms of NII?Two of the other financial firms with visible NII momentum are PNC Financial Services (PNC - Free Report) and Fifth Third Bancorp (FITB - Free Report) .
PNC Financial expects continued benefits from fixed-rate asset repricing and loan growth to support spread income in 2026. Stabilizing funding costs, along with strong loan growth, are likely to further support NII in the upcoming period. Management anticipates NII to rise nearly 3% sequentially in the second quarter of 2026. For 2026, PNC Financial expects NII to increase nearly 14.5% year over year, reflecting steady underlying momentum.
Fifth Third Bancorp expects NII to be in the range of $2.20–$2.25 billion in the second quarter of 2026 compared with $1.94 billion in the first quarter of 2026, supported by higher earning assets, lower funding costs and disciplined balance sheet management. The upside also reflects benefits from the Comerica acquisition and an expanding earning asset base. For 2026, adjusted NII is projected to be in the range of $8.7–$8.8 billion compared with $6 billion reported in 2025.
WFC’s Price Performance & Zacks RankShares of Wells Fargo have gained 9.5% in the past year compared with the industry’s growth of 26.9%.
Image Source: Zacks Investment Research
Wells Fargo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Justice Department has sent subpoenas to several of America’s largest banks as part of an investigation into alleged politically motivated debanking of clients, The Wall Street Journal reported Wednesday (June 10), citing unnamed sources.
Recipients of the subpoenas include Bank of America, JPMorganChase and Wells Fargo, according to the report.
Reached by PYMNTS, Wells Fargo declined to comment on the report.
Neither the Justice Department, Bank of America nor JPMorganChase immediately replied to PYMNTS’ request for comment.
According to the WSJ report, the subpoenas are “far-ranging” and request information about whether the banks improperly closed accounts for political reasons.
The Justice Department is looking into whether banks may have violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989, which covers bank-related fraud, or other laws, the report said.
Advertisement: Scroll to Continue
Some of the subpoenas were sent last year, per the report.
President Donald Trump signed an executive order on debanking in August 2025, saying he aimed to guarantee fair banking for all Americans.
The order requires federal banking regulators to review financial institutions for past or current policies encouraging debanking and to take remedial actions. It also requires them to review supervisory and complaint data for instances of debanking based on religion and to refer any such cases to the Attorney General, according to a White House fact sheet released along with the order.
Trump sued JPMorganChase and CEO Jamie Dimon for $5 billion in January, alleging that the financial institution debanked him and some of his companies for political reasons in 2021.
Fox Business reported at the time that the lawsuit accuses the defendants of “trade libel, violating Florida’s unfair and deceptive trade practices act, declaratory relief, and breach of implied covenant of good faith and fair dealing.”
JPMorganChase said in a Jan. 22 statement about the lawsuit that it believes the suit has no merit and that the bank will defend itself in court.
“Our company does not close accounts for political or religious reasons,” the statement said. “We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so.”
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in San Francisco, Wells Fargo (WFC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -12.05%. Currently paying a dividend of $0.45 per share, the company has a dividend yield of 2.2%. In comparison, the Financial - Investment Bank industry's yield is 1.24%, while the S&P 500's yield is 1.46%.
Looking at dividend growth, the company's current annualized dividend of $1.80 is up 5.9% from last year. Over the last 5 years, Wells Fargo has increased its dividend 4 times on a year-over-year basis for an average annual increase of 36.70%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Wells Fargo's current payout ratio is 27%, meaning it paid out 27% of its trailing 12-month EPS as dividend.
WFC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.84 per share, which represents a year-over-year growth rate of 8.92%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, WFC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
PITTSBURGH--(BUSINESS WIRE)--Wells Fargo today announced a $1 million donation to support skilled trades, training and workforce development in Pennsylvania through its ongoing partnership with the mikeroweWORKS Foundation. U.S. Senator Dave McCormick (R-PA) was on hand at an event at Community College of Allegheny County (CCAC) to show his support, underscoring the importance of continued philanthropic investment in workforce development across the state. “Pennsylvania's future depends on a st.
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
Trending News All MarketBeat Instant News Alerts Sort By
Time Frame
Alert Type
Keywords
Page 1 of 327
Get 30 Days of MarketBeat All Access for Free
Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools.
Start Your 30-Day Trial
Sign in to your free account to enjoy these benefits
In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer.
All donations will support the FIFA Global Citizen Education Fund, building on MetLife Foundation’s $9 million commitment
NEW YORK--(BUSINESS WIRE)--Today, MetLife and Global Citizen announced Footwork for Futures, a global soccer-themed social media challenge that supports children’s access to quality education and sports to foster more confident and resilient communities.
Footwork for Futures invites people to share a short video of themselves juggling – or attempting to juggle – a soccer ball on Instagram, LinkedIn, X, TikTok, or Facebook and include the hashtag #FootworkForFutures, or by submitting a video through the Global Citizen app. For each eligible video submission, MetLife will donate $5 to the FIFA Global Citizen Education Fund, up to $100,000, to help support access to quality education and sports for children through grants to community-based organizations around the world.
This social campaign builds upon MetLife Foundation’s $9 million contribution as a founding donor of the FIFA Global Citizen Education Fund. The fund gives grants to organizations in communities around the world that offer educational and sports programs. Footwork for Futures uses the excitement of this summer’s FIFA World Cup 2026™ to help organizations grow their initiatives, aiming to boost children’s confidence and strengthen communities.
“The FIFA Global Citizen Education Fund is proof of what’s possible when we unite the world’s love of football with the power of education to strengthen our communities,” said Nuria Garcia, Head of Global Sustainability, MetLife, and Chair, MetLife Foundation. “Footwork for Futures helps make that mission fun, real and accessible. Every video submitted is a meaningful step toward building more confident futures for young people around the world.”
Participation in Footwork for Futures is open to all individuals, regardless of skill, ability or experience, allowing each person to showcase their own approach to keeping a soccer ball in motion. The initiative runs from May 12 to July 19, 2026, or until donations reach $100,000. Submissions received after this period will be shared; however, they will not contribute to additional donations. Participants are encouraged, but not required, to nominate friends and family to join in.
All videos must follow the rules of the respective social media platforms and the campaign’s Terms & Conditions. To be eligible, each video must clearly display a real person safely and responsibly juggling (or attempting to juggle) a soccer ball. Global Citizen reserves the right to disqualify any entry that fails to meet these standards. For more information on how to participate visit: Footwork for Futures.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.
About MetLife Foundation
At MetLife Foundation, we are committed to driving inclusive economic mobility. We collaborate with nonprofit organizations and provide grants aligned to three strategic focus areas – economic empowerment, financial health and resilient communities – while engaging MetLife employee volunteers to help drive impact. MetLife Foundation was established in 1976 and for 50 years has continued MetLife’s long tradition of community engagement and involvement. Since its inception, MetLife Foundation has contributed over $1 billion to strengthen communities where MetLife has a presence. To learn more about MetLife Foundation, visit www.metlife.org.
About Global Citizen
Global Citizen is the world’s largest movement to end extreme poverty. Powered by a worldwide community of everyday advocates raising their voices and taking action, the movement is amplified by campaigns and events that convene leaders in music, entertainment, public policy, media, philanthropy and the private sector. Since the movement began, more than $50 billion in commitments announced on Global Citizen platforms has been deployed, impacting 1.3 billion lives. Established in Australia in 2008, Global Citizen operates in the US, the UK, France, Germany, Spain, Switzerland, Brazil, Canada, Australia, South Africa, Nigeria, Ghana, Rwanda, the UAE, and across Asia. Join the movement at globalcitizen.org, download the Global Citizen app, and follow Global Citizen on TikTok, Instagram, YouTube, Facebook, X and LinkedIn.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Bank of Montreal?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Bank of Montreal (BMO - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $2.47 a share 13 days away from its upcoming earnings release on May 27, 2026.
Bank of Montreal's Earnings ESP sits at +1.51%, which, as explained above, is calculated by taking the percentage difference between the $2.47 Most Accurate Estimate and the Zacks Consensus Estimate of $2.43. BMO is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
BMO is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at MetLife (MET - Free Report) as well.
Slated to report earnings on August 5, 2026, MetLife holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.46 a share 83 days from its next quarterly update.
For MetLife, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.45 is +0.11%.
Because both stocks hold a positive Earnings ESP, BMO and MET could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
NEW YORK--(BUSINESS WIRE)--MetLife, Inc. (NYSE: MET) today announced that it has declared the following preferred stock dividends:
Quarterly dividend of $0.31190376 per share on the company’s floating rate non-cumulative preferred stock, Series A, with a liquidation preference of $25 per share (NYSE: MET PRA). Quarterly dividend of $351.5625 per share on the company’s 5.625% non-cumulative preferred stock, Series E, with a liquidation preference of $25,000 per share, represented by depositary shares each representing 1/1,000th interest in a share of the preferred stock, holders of which will receive $0.3515625 per depositary share (NYSE: MET PRE). Quarterly dividend of $296.875 per share on the company’s 4.75% non-cumulative preferred stock, Series F, with a liquidation preference of $25,000 per share, represented by depositary shares each representing 1/1,000th interest in a share of the preferred stock, holders of which will receive $0.296875 per depositary share (NYSE: MET PRF). The above dividends will be payable June 15, 2026, to shareholders of record as of Friday, May 29, 2026, due to the record date occurring on Sunday, May 31, 2026.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, using words such as “will,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it does not undertake any obligation to publicly correct or update any of these statements.
