Key Takeaways Charter reported Q2 EPS of $10.66, topping estimates, while revenues fell 1.7% year over year.CHTR grew mobile revenues 18.9% as video and Internet revenues declined amid customer losses.Charter added 406,000 mobile lines, while improved video trends reflected simplified pricing and packaging. Charter Communications (CHTR - Free Report) has reported second quarter 2026 diluted earnings of $10.66 per share, which beat the Zacks Consensus Estimate of $9.96 by 7.03%. The reported figure increased 16.1% year over year from $9.18 in the year-ago quarter.
Revenues of $13.5 billion declined 1.7% year over year, primarily driven by lower residential video revenues. The reported figure exceeded the Zacks Consensus Estimate of $13.518 billion by a marginal 0.06%. Excluding advertising sales revenue and costs allocated to programmer streaming applications and netted within video revenue, total revenue declined 0.8% year over year.
CHTR has shown weak performance, missing the Zacks Consensus Estimate in all the trailing four quarters, with an average negative surprise of 6.95%.
CHTR’s Segmental DetailsResidential revenues totaled $10.4 billion, down 3.5% year over year due to a decline in residential customers of 1.8% and a decrease in monthly residential revenue per residential customer of 1.8%. Excluding costs allocated to programmer streaming applications and netted within video revenues, residential revenues declined 1.8% year over year.
Internet revenues declined 3.2% year over year to $5.8 billion, driven by a decline in Internet customers year over year and pricing and packaging mix within the customer base, partly offset by more favorable bundled revenue allocation.
Mobile service revenues increased 18.9% year over year to $1.1 billion, driven by mobile line growth and rate adjustments.
Video revenues totaled $3.1 billion in the second quarter, a decrease of 9.7% year over year, driven by a higher mix of lower priced video packages, $251 million of costs allocated to programmer streaming applications and netted within video revenue versus $67 million in the year ago period, more unfavorable bundled revenue allocation and a decline in video customers, partly offset by promotional rate step ups and video rate adjustments.
Voice revenues decreased 4.5% year over year to $331 million, driven by a decline in wireline voice customers, partly offset by voice rate adjustments.
Commercial revenues increased 1.5% year over year to $1.9 billion, driven by mid market and large business revenue growth of 2.8% and an increase in small business revenue of 0.7%.
Mid market and large business revenues excluding wholesale increased 3.5% year over year, mostly reflecting primary service unit growth.
Second-quarter advertising sales revenues of $416 million increased 12.3% year over year, primarily driven by higher political revenues. Excluding political revenues in both periods, advertising sales revenues decreased 4.6% year over year, reflecting lower linear advertising revenues, partly offset by higher streaming advertising revenues.
Other revenues totaled $894 million in the second quarter, an increase of 7.1% year over year, primarily driven by higher mobile device sales, partly offset by a $45 million one-time benefit in the year-ago period.
CHTR’s Subscriber StatisticsSecond quarter total customer relationships declined 1.7% year over year to 31.5 million. Total connectivity customers decreased 1.3% year over year to 30.4 million.
Total Internet customers decreased by 172,000 in the second quarter of 2026, compared with a decline of 116,000 in the year-ago period. As of June 30, 2026, Charter served 29.4 million total Internet customers, down 1.7% year over year.
The company added 406,000 total mobile lines in the second quarter compared with 491,000 in the year-ago quarter. As of June 30, 2026, it served 12.5 million mobile lines, up 15.5% year over year.
Total video customers decreased 21,000 in the second quarter of 2026 compared with a decline of 80,000 in the year-ago quarter. As of June 30, 2026, Charter served 12.5 million total video customers, down 0.8% year over year. The year-over-year improvement in video net losses was driven by simplified pricing and packaging and benefits from the inclusion of programmer streaming applications in Spectrum's expanded basic video packages.
Total wireline voice customers declined by 178,000 in the second quarter of 2026 compared with a decline of 220,000 in the year-ago quarter. As of June 30, 2026, Charter served 5.7 million total wireline voice customers.
Charter activated 127,000 subsidized rural passings in the second quarter of 2026. Within the subsidized rural footprint, total customer relationships increased by 47,000.
CHTR’s Operating DetailsTotal operating costs and expenses were flat year over year at $8.1 billion, driven by lower programming costs offset by higher other costs of revenue and higher transition expenses.
Second quarter programming costs decreased 9.7% year over year, reflecting $251 million of costs allocated to programmer streaming applications and netted within video revenues versus $67 million in the year ago period, a higher mix of lower cost packages and fewer video customers, partly offset by contractual programming rate increases and renewals.
Other costs of revenues increased 11.3% year over year, primarily driven by higher mobile device sales, higher mobile service direct costs and higher advertising sales costs, given higher political revenues.
Field and technology operations expenses increased 1.6% year over year, primarily driven by higher vehicle fuel costs and medical expenses.
Customer operations expenses increased 1.1% year over year, driven by medical expenses.
Marketing and residential sales expenses decreased 3.1% year over year, due to lower marketing expenses from cost savings despite higher marketing activity.
Transition expenses of $65 million represent incremental costs incurred to prepare for the integration of the previously announced Cox Communications transaction. There were no comparable transition expenses in the year ago quarter.
Capital expenditures totaled $2.9 billion in the second quarter, down 0.1% year over year, with lower line extension spend offset by higher upgrade and rebuild spend related primarily to network evolution. Charter continues to expect full year 2026 capital expenditures, excluding impacts from the previously announced Cox transaction, to total approximately $11.4 billion.
Balance Sheet & Cash FlowAs of June 30, 2026, the total principal amount of debt was $93.8 billion, and Charter's credit facilities provided approximately $3.7 billion in additional liquidity in excess of Charter's $509 million cash position.
During the second quarter of 2026, Charter repurchased $1.2 billion in aggregate principal amount of Charter Communications Operating, LLC and CCO Holdings, LLC notes under an open market repurchase program for $1 billion in cash.
Free cash flow in the second quarter of 2026 totaled $969 million, a decrease from $1.4 billion in the first quarter of 2026.
In the second quarter of 2026, Charter purchased 4 million shares of Charter Class A common stock for $838 million compared with 4.3 million shares for $963 million in the first quarter of 2026.
Zacks Rank & Stocks to ConsiderCHTR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Cimpress (CMPR - Free Report) , The Marcus (MCS - Free Report) and News Corporation (NWSA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Cimpress have returned 46.2% in the year-to-date period. Cimpress is slated to report fourth-quarter of fiscal 2026 results on July 29.
Shares of The Marcus have returned 53.4% in the year-to-date period. The Marcus is slated to report second-quarter 2026 results on July 30.
Shares of News Corporation have returned 0.8% in the year-to-date period. News Corporation is slated to report fourth-quarter of fiscal 2026 results on Aug. 05.
The market expects Chevron (CVX - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil company is expected to post quarterly earnings of $5.79 per share in its upcoming report, which represents a year-over-year change of +227.1%.
Revenues are expected to be $57.53 billion, up 28.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 21.89% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Chevron?For Chevron, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Chevron will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Chevron would post earnings of $0.92 per share when it actually produced earnings of $1.41, delivering a surprise of +53.26%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Chevron doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Exxon Mobil (NYSE:XOM | XOM Price Prediction) and Chevron (NYSE:CVX) both reported Q1 2026 results on May 1, 2026, right as the war with Iran reshaped global crude flows. With the Strait of Hormuz effectively closed and Brent recently near $90 per barrel, the two American majors are running the same playbook with very different exposure maps.
How the Quarter Landed for Each Business Exxon posted adjusted EPS of $1.16 versus $1.01 expected on revenue of $85.14 billion, a solid beat despite $706 million in direct Middle East losses and a $3.88 billion mark-to-market drag on unsettled derivatives. Upstream volumes hit 4.6 million oil-equivalent barrels per day, and CEO Darren Woods framed the quarter bluntly: “Events in the Middle East tested that strength with the safety of our people remaining our top priority.”
Chevron’s beat was larger but messier. Adjusted EPS came in at $1.41 versus $0.97 expected, though revenue of $47.56 billion missed by 9.76% and free cash flow flipped to negative $1.55 billion. Curtailments hit its Tamar and Leviathan operations in Israel, and Mike Wirth leaned on the Hess integration and record U.S. throughput to carry the story.
Cash Machine vs. Hemisphere Hedger Lens XOM CVX Core Bet LNG, Guyana, Permian scale Hess, Gulf of America, Venezuela Middle East Exposure Physical shipment losses Israel field curtailments 2026 Buyback Pace $20B planned $2.5B quarterly Exxon is engineered to convert $100 oil into raw cash. Golden Pass LNG Train 1 shipped its first cargo in April, Guyana output topped 900,000 gross barrels per day, and cumulative structural cost savings since 2019 reached $15.6 billion. Chevron is trading pure upside for geographic insurance. Talks around a $366 billion Iraq-to-Syria pipeline revival aim to bypass Hormuz entirely, and new plays in Libya, Uruguay, and Venezuela widen its Western Hemisphere footprint.
The Next Test Is How Long Brent Stays Elevated The EIA now expects Brent around $106 per barrel in May and June before easing to $89 by 4Q26, with 10.75 million barrels per day of Middle East production shut in. WTI last traded at $80.77, already off May highs. I will be watching whether Exxon’s LNG cargoes and Permian barrels keep compounding, and whether Chevron’s Hess-era production growth of 15% year over year can offset those Israeli curtailments.
Why I Lean Toward Exxon on This Setup For me, Exxon is the cleaner Iran-war trade. The 47.24% one-year return against Chevron’s 32.29% reflects tighter operating leverage to crude, and the $20 billion buyback is a real floor. Investors focused on lower operational supply risk and unique Venezuela and Israel optionality may find Chevron’s profile more appealing, especially with a $1.78 quarterly dividend backed by 39 straight years of increases. The key variable for both names is whether Hormuz reopens faster than the EIA expects.
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Key Takeaways NEM maintained 2026 production guidance of 5.3 million attributable gold ounces.Newmont returned more than 80% of quarterly free cash flow for a second consecutive quarter.NEM advanced Cadia recovery and Red Chris plans while managing costs and project investments. Newmont Corporation (NEM - Free Report) maintained its 2026 outlook as stronger portfolio execution and elevated gold prices supported substantial cash generation despite rising fuel costs and disruptions at Cadia.
Management’s central message was that operating discipline, a strong balance sheet and a repeatable capital allocation framework can sustain project investment and shareholder returns through changing market conditions.
NEM Maintains Full-Year Production GuidancePresident and chief executive officer Natascha Viljoen said Newmont remains on track to produce approximately 5.3 million attributable gold ounces in 2026. Second-quarter production totaled 1.3 million ounces.
Production modestly exceeded management’s April expectations because Yanacocha and Lihir delivered about 50,000 ounces earlier than planned. That timing shifted the expected annual production split to 49% in the first half and 51% in the second half.
Viljoen expects third-quarter production to remain broadly in line with the second quarter. The fourth quarter should be the year’s strongest as Lihir completes maintenance and Ahafo North reaches its full operating rate.
Newmont Faces Higher Near-Term Unit CostsExecutive vice president and chief financial officer Brian Tabolt said third-quarter unit costs should rise moderately as sustaining capital increases by approximately $150 million sequentially.
Oil and diesel remain important pressure points. Tabolt told a Jefferies analyst that every $10-per-barrel change in oil carries an estimated $60 million full-year impact, while higher freight could affect explosives, cyanide and grinding media.
Management nevertheless retained its 2026 guidance of $1,055 per ounce for gold by-product costs applicable to sales and $1,680 per ounce for all-in sustaining costs. Viljoen cited reduced equipment use, lower contractor reliance and site-level productivity programs as offsets.
NEM Targets a Fourth-Quarter Production PickupViljoen said second-half growth should come primarily from Boddington, Tanami, Lihir, Cerro Negro and Brucejack. Ahafo North is expected to increase sequentially through the year.
During the analyst discussion, a Goldman Sachs representative asked how Newmont intends to rebuild annual production toward 6 million ounces.
Viljoen said the path is not heavily dependent on Cadia’s new caves. She pointed to Ahafo North, higher-grade areas at Boddington and Lihir, and expansion opportunities at Cerro Negro and Tanami as additional contributors.
Newmont Advances Cadia Recovery and Red ChrisThe two operating caves at Cadia returned to production in mid-June after the April seismic event. Development work has resumed, although regulatory approval is still required to restart cave establishment at PC1-2 and PC2-3.
Viljoen told a CIBC analyst that mature caves had returned to background seismicity. Newmont is updating models and safety controls before restarting development activities that carry greater seismic exposure.
At Red Chris, major regulatory approvals are now in place. Management expects capital requirements to exceed earlier Newcrest estimates but said design improvements have reduced project risk and strengthened economics ahead of a potential year-end board decision.
NEM Keeps Returning Excess CashTabolt said Newmont generated $2.2 billion of free cash flow and returned more than 80% of quarterly free cash flow for a second consecutive quarter.
The company repurchased $1.7 billion of shares since its previous earnings call, including more than $600 million in July. Approximately $4.3 billion remains under the current authorization.
Repurchases have reduced the share count by more than 100 million shares, or approximately 9%, over two years. Tabolt said the lower count could support a quarterly dividend of 27 cents at the next annual review, subject to board approval.
Newmont Balances Investment and Financial FlexibilityManagement retained sustaining and development capital guidance of $1.95 billion and $1.4 billion, respectively. Spending is weighted toward the second half as work accelerates at Cadia, Lihir, Tanami, Red Chris and Cerro Negro.
Newmont ended the quarter with $3.4 billion of net cash, above the upper end of its targeted range. Excess cash is directed toward repurchases after sustaining investment, dividends, development projects and balance-sheet priorities are funded.
Adjusted earnings of $2.1 per share exceeded the Zacks Consensus Estimate of $2.05. Revenues of $6.12 billion fell short of the $6.35 billion consensus.
NEM’s Priorities After the CallManagement’s tone was confident on full-year delivery but guarded about energy inflation, third-quarter costs and the timing of regulatory approvals.
The operating focus remains on consistent production, Cadia’s safe recovery, productivity improvements and disciplined project development. Capital allocation continues to emphasize financial flexibility and ratable shareholder returns.
Zacks Signals Present a Conflicted ProfileNEM currently carries a Zacks Rank #4 (Sell), indicating an unfavorable earnings-estimate revision trend. That signal takes precedence over an otherwise strong Growth and VGM Score of A each and a Value Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Momentum Score of F adds another weak element to the near-term setup. The Zacks Rank can change as analysts revise estimates following the newly reported results, so the current combination should not be viewed as permanent.
I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because the crowd screaming “SaaSpocalypse” is looking at a stock chart while I am looking at a receipts book. The stock is down 34.05% year to date while the S&P 500 is up 8.82%, and every time the gap widens, I add more shares. My cost basis keeps working in my favor, and the business underneath keeps compounding.
The Receipts Behind My Conviction Start with what actually happened last quarter. Salesforce delivered EPS of $3.88 against a consensus of $3.1271, a 24.08% beat and the fifth consecutive quarter of exceeding estimates. Revenue landed at $11.13 billion, up 13.27% year over year. Net income jumped 36.73%. These are the numbers of a compounder that the market has decided to price like a melting ice cube.
Then there is the AI receipt in plain view. Agentforce and Data 360 combined ARR reached nearly $3.4 billion, up over 200% year over year. Agentforce alone crossed $1.2 billion in ARR, growing 205%. Customers delivered 3.8 billion Agentic Work Units, and more than 50% of new Agentforce bookings came from existing customers. That is real recurring revenue from enterprises paying to have agents do work inside their systems of record. Industry surveys show over 60% of CIOs prefer upgrading incumbent SaaS vendors rather than replacing them with raw models, citing SOC2 compliance and audit trails that startups cannot match. That is the moat.
The capital return finishes the case. Salesforce executed a $25 billion accelerated share repurchase, taking diluted share count from 970 million to 871 million in a year. Total returned in the quarter: $27.5 billion. With a P/E of 19, a free cash flow yield of 10.12%, and a 1.11% dividend that was raised 5.8% this year, I am buying growth at a value multiple.
Why Not the Obvious Alternatives Readers ask about ServiceNow (NYSE:NOW) and HubSpot (NYSE:HUBS). ServiceNow is down 51% from its 52-week high, and CLSA just initiated with an underperform rating and a $72 price target implying 31% downside. HubSpot got cut by Wells Fargo from Overweight to Equal Weight with the target sliced from $300 to $225 on AI transition uncertainty. Salesforce already carries the average Wall Street target of $254.42 against a stock trading at $173.79. Same fear, better fundamentals, cheaper entry.
The Risk I Own Noncurrent debt jumped from $10.4 billion to $39.3 billion to fund the buyback, and Informatica integration is a real execution project. Interest coverage of 27.5x and net debt to EBITDA of 0.78 tell me the balance sheet absorbs it. I am fine with management leaning into a cheap stock.
Marc Benioff called this “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow” and set a $63 billion FY30 revenue target. I will keep buying while the market sells me a compounder at a value multiple.
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Key Takeaways SAP highlighted its Autonomous Enterprise strategy, AI push and strong demand for Business AI solutions.SAP reported cloud backlog of EUR22.9B, with cloud revenues up 22% and Cloud ERP Suite revenues up 25%.SAP adjusted 2026 operating profit outlook after Dremio and Prior Labs acquisition impacts. SAP SE (SAP - Free Report) used its second-quarter earnings call to emphasize accelerating adoption of its Autonomous Enterprise strategy, with management focusing on artificial intelligence, cloud momentum and disciplined investment. Executives highlighted strong demand for cloud ERP migrations while acknowledging near-term margin pressure from acquisitions and AI-related spending.
The discussion centered on how SAP plans to combine enterprise data, applications and AI agents while maintaining operating leverage. Management also addressed investor concerns around profitability, guidance and the pace of AI monetization.
SAP Advances Autonomous Enterprise StrategyCEO Christian Klein said SAP’s second quarter showed continued momentum in its AI transformation, driven by the launch of the Autonomous Enterprise vision and increased customer interest in Business AI solutions. He highlighted that AI and SAP Business Data Cloud were embedded in more than 90% of the company’s 50 largest deals.
Klein explained that SAP’s AI platform is built around three areas: development tools for creating agents, data and context capabilities to support accurate decisions, and governance features to manage compliance and security. The company is integrating acquisitions such as Dremio, Reltio and Prior Labs into this strategy.
SAP also said customer interest in its new platform offerings has been strong, with beta programs for its platform, suite and Joule Work product receiving significant participation. Management expects to release additional assistants and expand autonomous agents across its portfolio.
SAP SE Maintains Cloud Growth FocusSAP SE reported a current cloud backlog of €22.9 billion, up 27% year over year and 26% at constant currencies. Cloud revenues increased 22% year over year to €6.3 billion, while Cloud ERP Suite revenues rose 25%.
Management said cloud growth benefited from continued customer migrations from on-premise systems to cloud ERP solutions. CFO Dominik Asam noted that SaaS and PaaS growth remained strong, with Cloud ERP Suite accounting for 88% of total cloud revenues.
The company also highlighted regional strength, with cloud revenues performing particularly well in Asia Pacific and Japan and Europe, the Middle East and Africa. Management cited strong execution despite ongoing macroeconomic uncertainty.
SAP Addresses Profitability and Investment BalanceThe company’s second-quarter operating profit rose 8% under IFRS and 7% on a non-IFRS basis, while the non-IFRS operating margin was 27.8%. Management attributed slower profit growth to increased research and development investments, higher marketing spending tied to the Autonomous Enterprise launch, and acquisition impacts.
Asam said SAP remains committed to its operating leverage framework while prioritizing AI investments and protecting revenue growth. He emphasized that the quarter included several temporary factors and should be viewed within the broader first-half performance.
The company reported second-quarter earnings per share of $1.85, which missed the Zacks Consensus Estimate of $2. However, revenues of $11.48 billion exceeded the Zacks Consensus Estimate of $11.41 billion by 0.7%.
SAP Updates 2026 OutlookSAP maintained its cloud revenue outlook for 2026 at €25.8-€26.2 billion at constant currencies, representing growth of 23% to 25%. It also kept its cloud and software revenue forecast of €36.3 billion to €36.8 billion.
The company adjusted its non-IFRS operating profit outlook to €11.8 billion to €12.2 billion at constant currencies from the previous €11.9 billion to €12.3 billion range. Management said the revision reflects the dilutive impact of the Dremio and Prior Labs acquisitions.
SAP continued to expect approximately €10 billion in free cash flow for 2026 and said current cloud backlog growth is expected to slightly decelerate through the year.
SAP Faces Analyst Questions on AI ReturnsA Morgan Stanley analyst asked about the lower operating profit outlook and whether SAP’s investment priorities had shifted toward growth rather than margin expansion. Asam responded that SAP continues to operate within its expense discipline framework and that AI transformation investments are intended to support long-term productivity.
A Goldman Sachs analyst questioned the visibility into cloud revenue growth and the timing of AI monetization. Klein said the post-Sapphire pipeline improved, with customers increasingly recognizing the need for ERP modernization alongside AI adoption.
Management also emphasized that customers are seeking enterprise AI solutions with governance, cost control and data quality, areas SAP believes differentiate its platform strategy.
SAP SE Prioritizes AI Transformation ExecutionSAP’s leadership reiterated that the company’s focus for the second half of 2026 is sustaining cloud momentum, delivering operating leverage and expanding AI capabilities. Management pointed to internal AI adoption efforts, workforce reskilling, and developer productivity improvements as important parts of the transformation.
The company continues to balance investment in AI products with profitability goals. Executives said recent acquisitions and AI initiatives are designed to strengthen SAP’s position in enterprise automation while preserving financial discipline.
Zacks Rank and Style Scores SAP has a Zacks Rank #4 (Sell) at present. The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with stronger or weaker potential performance over the next one to three months. The rank can change as analysts revise earnings expectations following new company developments.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SAP’s Style Scores include a Value Score of C, Growth Score of B, Momentum Score of D and VGM Score of C. The Style Scores evaluate characteristics such as value, growth and momentum, with higher grades indicating more favorable attributes. The combination of Zacks Rank and Style Scores provides additional context for evaluating a stock’s potential performance characteristics.
Key Takeaways SAP Q2 revenue jumped 9% as cloud revenue rose 22% and cloud backlog grew 27% year over year.SAP cut its 2026 operating profit outlook after acquisitions but reaffirmed cloud revenue targets.SAP expanded AI adoption and enterprise cloud wins across industries, supporting future growth visibility. SAP SE (SAP - Free Report) reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.
Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.
AI strategy is becoming a major competitive advantage for SAP. Management emphasized its Autonomous Enterprise strategy, which combines Business AI with enterprise applications. SAP is embedding AI directly into finance, procurement, supply chain, HR and customer operations. The company's strategy revolves around two major pillars –Autonomous Suite and Business AI Platform. SAP believes customers increasingly value AI solutions that operate using trusted enterprise data while maintaining governance and compliance.
This positioning gives SAP a competitive edge because its AI capabilities are built on decades of customer business processes and transactional data rather than disconnected AI models. As AI adoption expands across enterprises, SAP is well-positioned to monetize AI through higher cloud subscriptions rather than relying solely on standalone AI products.
Cloud Business Continues to Be SAP's Growth EngineCurrent cloud backlog reached €22.9 billion in the quarter, representing 27% year-over-year growth (26% at cc). This metric is important because it reflects contracted future cloud revenue, giving investors visibility into future growth.
On a non-IFRS basis, the Cloud and software segment (89.6% of total revenues) registered revenues of €8.9 billion, rising 11% year over year (up 13% at cc).
Cloud revenue increased 22% year over year (24% at cc) to €6.3 billion, on a non-IFRS basis, demonstrating that enterprise customers continue to migrate mission-critical workloads to SAP's cloud ecosystem. SAP's Cloud ERP Suite, where revenue increased 25% (27% at cc) to €5.5 billion, is equally encouraging. Software licenses and support revenues totaled €2.6 billion, representing a 9% decrease (down 8% at cc) year over year.
Services business (10.4% of total revenues) posted revenues of €1 billion, down 3% year over year (down 2% at cc).
Expanding Clientele Bodes WellIn the second quarter, organizations worldwide continued to adopt the “RISE with SAP” program to support their comprehensive business transformations. Notable adopters included ACCIONA, AIRBUS, City of Osnabrück, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma and Vonovia.
“GROW with SAP” was implemented by Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, and Techem.
Major global brands across various industries, including AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich and Vale, chose SAP's AI and data solutions.
SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP and TEAG went live on SAP solutions during the quarter.
SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore.
Margin DetailsNon-IFRS gross profit of €7.3 billion increased 9% from the year-ago quarter (up 11% at cc).
Non-IFRS cloud gross profit increased 22% year over year to €4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%.
SAP's non-IFRS operating profit rose 7% (up 9% at cc) to €2.7 billion, while margin decreased to 27.8%.
Balance Sheet & Cash FlowAs of June 30, 2026, SAP had cash and cash equivalents of €11.6 billion compared with €10.1 billion as of March 31, 2026.
In the second quarter, the company generated operating cash of €3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to €3 billion during the quarter.
SAP also continues returning capital to shareholders. Its newly authorized €10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately €2.6 billion.
SAP’s 2026 Guidance Reaffirmed Despite Lower Profit OutlookThe company lowered its non-IFRS operating profit outlook from €11.9–€12.3 billion to €11.8–€12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding €100 million during 2026.
Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between €25.8 billion and €26.2 billion, cloud and software revenue between €36.3 billion and €36.8 billion and approximately €10 billion in free cash flow.
Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth.
Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations.
SAP’s Zacks RankSAP currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent PerformancesAmerica Movil, S.A.B. de C.V. (AMX - Free Report) reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.
BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.
Iridium Communications (IRDM - Free Report) reported EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million.
Linde (LIN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis gas supplier is expected to post quarterly earnings of $4.49 per share in its upcoming report, which represents a year-over-year change of +9.8%.
Revenues are expected to be $8.96 billion, up 5.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.55% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Linde?For Linde, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.09%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Linde will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Linde would post earnings of $4.27 per share when it actually produced earnings of $4.33, delivering a surprise of +1.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Linde doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Chemical - Specialty industry, Quaker Chemical (KWR - Free Report) , is soon expected to post earnings of $1.68 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -1.8%. This quarter's revenue is expected to be $511.83 million, up 5.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Quaker Chemical has been revised 1.5% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.67%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Quaker Chemical will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street analysts expect Agnico Eagle Mines (AEM - Free Report) to post quarterly earnings of $2.89 per share in its upcoming report, which indicates a year-over-year increase of 49%. Revenues are expected to be $3.86 billion, up 37.2% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 16.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Agnico metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Revenue from mine operations- Quebec- LaRonde' stands at $427.61 million. The estimate indicates a change of +79.6% from the prior-year quarter.
Analysts forecast 'Revenue from mine operations- Quebec- Canadian Malartic' to reach $667.02 million. The estimate suggests a change of +34.2% year over year.
Analysts expect 'Revenue from mine operations- Quebec- Goldex' to come in at $143.17 million. The estimate indicates a year-over-year change of +24.2%.
It is projected by analysts that the 'Revenue from mine operations- Nunavut- Meliadine' will reach $436.35 million. The estimate suggests a change of +23.1% year over year.
The consensus among analysts is that 'Payable production - Gold (ounces) - Total Gold' will reach $838926.4 ounces. Compared to the current estimate, the company reported $866029.0 ounces in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Payable production - Gold (ounces) - Quebec - LaRonde' should arrive at $87086.3 ounces. The estimate is in contrast to the year-ago figure of $69778.0 ounces.
According to the collective judgment of analysts, 'Payable production - Gold (ounces) - Quebec - Canadian Malartic' should come in at $148272.2 ounces. Compared to the current estimate, the company reported $172531.0 ounces in the same quarter of the previous year.
Analysts' assessment points toward 'Payable production - Gold (ounces) - Quebec - Goldex' reaching $30351.6 ounces. Compared to the present estimate, the company reported $33118.0 ounces in the same quarter last year.
The average prediction of analysts places 'Payable production - Gold (ounces) - Nunavut - Meliadine' at $95419.5 ounces. The estimate is in contrast to the year-ago figure of $90263.0 ounces.
Analysts predict that the 'Payable production - Gold (ounces) - Nunavut - Meadowbank' will reach $104982.5 ounces. The estimate compares to the year-ago value of $101935.0 ounces.
The collective assessment of analysts points to an estimated 'Payable production - Gold (ounces) - Finland - Kittila' of $52694.2 ounces. The estimate compares to the year-ago value of $50357.0 ounces.
The combined assessment of analysts suggests that 'Payable production - Gold (ounces) - Ontario - Detour Lake' will likely reach $172249.1 ounces. The estimate compares to the year-ago value of $168272.0 ounces.
View all Key Company Metrics for Agnico here>>>
Over the past month, Agnico shares have recorded returns of -7.5% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #5 (Strong Sell), AEM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Baidu Inc. (BIDU - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Baidu Inc. currently has an average brokerage recommendation (ABR) of 1.62, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.62 approximates between Strong Buy and Buy.
Of the 21 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 71.4% and 4.8% of all recommendations.
Brokerage Recommendation Trends for BIDU
Check price target & stock forecast for Baidu Inc. here>>>
The ABR suggests buying Baidu Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is BIDU a Good Investment?Looking at the earnings estimate revisions for Baidu Inc., the Zacks Consensus Estimate for the current year has declined 21.2% over the past month to $6.82.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
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 #5 (Strong Sell) for Baidu Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Baidu Inc with a grain of salt.
Key Takeaways Dow's Q2 EPS beat estimates, with revenues of $12.09B and self-help benefits above $300M.Dow's Packaging & Specialty Plastics sales rose 27% as higher polyethylene prices boosted results.Dow expects Q3 EBITDA of about $1.7B while self-help actions add roughly $130M in sequential benefits. Dow Inc. (DOW - Free Report) used its second-quarter earnings call to emphasize cost actions, portfolio changes and disciplined execution as management focuses on improving earnings durability. The company highlighted stronger pricing, margin recovery and cash generation while acknowledging continued market volatility.
Management also provided a cautious third-quarter outlook, pointing to polyethylene margin pressure and seasonal factors while expecting additional benefits from restructuring and productivity initiatives.
DOW Advances Cost and Portfolio ActionsCEO Karen Carter said that Dow is focused on three priorities: targeted growth, improving portfolio competitiveness and maintaining balanced capital allocation. Carter emphasized using the company’s global assets and customer relationships to strengthen long-term competitiveness.
DOW reported second-quarter operating EPS of $1.44, beating the Zacks Consensus Estimate of $1.25. Revenues of $12.09 billion slightly surpassed the Zacks Consensus Estimate of $12.04 billion.
The company said self-help efforts generated more than $300 million of benefits during the quarter. Management increased expected in-year benefits from these actions to more than $1.3 billion.
Dow Sees Strength in Key MarketsDow’s second-quarter sales increased 20% year over year, supported by higher prices across regions. Operating EBITDA was $2.3 billion, while operating EBIT improved significantly from the prior-year period.
The company’s Packaging & Specialty Plastics segment was a major contributor, with sales rising 27% year over year to $6.4 billion. Dow attributed this improvement to higher polyethylene prices and stronger integrated margins.
Dow noted that data center demand remains a growth area, particularly for thermal management solutions and Industrial Solutions products. Carter highlighted opportunities in electronics, mobility and specialty applications.
DOW Details Third-Quarter OutlookCFO Jeffrey Tate said that Dow expects third-quarter EBITDA of approximately $1.7 billion. The outlook indicates anticipated polyethylene margin compression following June price changes and typical seasonal patterns after strong second-quarter demand.
Management expects about $130 million of sequential benefits from self-help actions during the third quarter. These gains are expected to offset planned maintenance and the absence of certain second-quarter benefits.
Dow also highlighted risks from geopolitical tensions, logistics constraints and uneven regional demand. The company said market conditions remain volatile, particularly due to ongoing disruptions affecting energy and feedstock markets.
Dow Builds Specialty Growth PlatformsDow said it is reshaping the silicones business by reducing higher-cost upstream capacity and expanding downstream opportunities. The company expects the Barry, U.K. siloxanes shutdown to provide a $60 million EBITDA uplift in the second half of 2026.
Management said specialty silicones investments are focused on faster-growing markets, including electric vehicles, consumer electronics, healthcare and data centers. Carter noted that these downstream markets are expected to deliver stronger returns.
The company also discussed its Dow Coolant Care Network, which supports data center thermal management needs. Management views the offering as a way to expand both revenue opportunities and service capabilities.
DOW Addresses Analyst ConcernsA Morgan Stanley analyst asked about the Alberta project and whether Dow could bring in a partner. Carter said that the company remains focused on completing the project while staying disciplined on returns.
A JPMorgan analyst questioned the timing of cost savings and capital allocation priorities. Tate said that debt reduction remains the first priority, with share repurchases not expected during 2026.
Analysts also questioned polyethylene assumptions. Carter said that improving oil prices, declining inventories and stronger order activity could provide upside if current market conditions continue.
Dow Focuses on Financial FlexibilityDow confirmed that it is prioritizing balance sheet strength, maintaining approximately $14 billion in liquidity and directing excess cash toward deleveraging. Management noted that there are no substantive debt maturities until 2029.
The company expects working capital actions to release more than $500 million in the second half of 2026. Management also confirmed progress from restructuring efforts, including implemented role reductions and site transformation initiatives.
Carter said that Dow’s approach remains centered on improving productivity, strengthening its asset base and focusing investment on attractive markets. The company continues to position its actions around longer-term competitiveness.
Zacks Signals Point to a Mixed SetupDOW carries a Zacks Rank #3 (Hold), indicating that the stock’s earnings estimate revision trends are currently consistent with a neutral outlook. The Zacks Rank can change as analysts update earnings expectations following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of B and VGM Score of B, while its Growth Score is C and Momentum Score is F. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with stronger scores indicating more favorable attributes.
12:15pm: Welcome to X, Mr Huang Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) CEO Jensen Huang posted on X for the first time on Friday, sharing a multi-company letter that defends open-weight AI models as essential to US technology leadership.
Huang, who joined the platform last month but had not posted until now, used his debut message to promote a letter signed by Nvidia and roughly 20 other organizations, including Meta, Microsoft and Palantir.
The letter argues that open models strengthen safety, accelerate innovation and support national AI sovereignty, and that US leadership should not rest on a single frontier model alone.
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.
AI will transform every industry, power every company, and be built by every country.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C
— Jensen Huang (@JensenHuang) July 24, 2026 11:00am: Inflation still Fed's primary concern The US labour market continues to show little sign of meaningful deterioration despite softer hiring in June, according to Bank of America, leaving inflation as the Federal Reserve's primary concern ahead of next week's policy meeting.
The bank noted that while June payroll growth came in below expectations, the broader picture remains solid. The three-month average of job gains is still comfortably above the level needed to keep pace with population growth, while the unemployment rate has held steady at 4.2%.
More recent indicators have also remained encouraging. Bank of America said ADP private payroll growth has eased in recent weeks, but suggested that slowdown likely reflects a normalization after unusually strong hiring earlier this year. At the same time, weekly jobless claims continue to point to a stable labour market.
"Bottom line: the labor market appears healthy heading into the July FOMC meeting, leaving the focus squarely on inflation risks," analysts wrote.
10am: Mixed open It's another mixed open on Wall Street, with the Dow adding around 100 points, or 0.2%, while the S&P 500 was flat and the Nasdaq Composite started down 0.2% as technology shares seemed to be extending yesterday's selloff.
Charter Communications was the biggest Nasdaq 100 faller, sliding 6% after earnings, while other fallers include Marvell, Lumentum, Micron, Western Digital, ARM, Seagate and Intel, all down over 3.8%.
American Express has dropped 4.8%, the biggest Dow faller, but Verizon tops the leaderboard with a 3.5% gain, followed by Salesforce and IBM.
8am: Dow called higher but tech to remain a drag Wall Street is set for a tentative recovery on Friday after the previous session's technology selloff wiped roughly $800 billion from the market value of the so-called Magnificent Seven tech giants, with the world also waking to a new US tariff regime.
Dow Jones futures were up 199 points or 0.4%, while S&P 500 was expected to add 0.2% and Nasdaq futures were broadly flat, having surrendered an earlier gain of around 0.25%.
The day before, the Nasdaq had tumbled 2.2% to 25,138 due to the worst session for the Mag 7 since the original "tariff tantrum" day. The S&P 500 fell 1.2% to 7,408, while the Dow shed 507 points, or 1%, to close at 51,712.
Investors dumped technology stocks after results from Tesla and Alphabet failed to ease concerns about surging AI spending. Higher oil prices also reignited inflation worries and pushed Treasury yields to their highest levels of the year.
After WTI crude reached a seven-week high of $93.5 a barrel the previous afternoon, prices eased to $89.8 on Friday morning.
Security concerns remain elevated after strikes in the Red Sea, which led some tanker operators to reroute vessels onto even longer journeys.
Meanwhile, Donald Trump confirmed new tariffs covering more than 99% of US goods imports under Section 301 rules.
The levies, ranging from 10% to 12.5%, take effect Friday and are designed to enforce restrictions on "forced labour" imports, the White House said.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," US Trade Representative Jamieson Greer said.
Yale Budget Lab estimates the measures will lift the average statutory tariff rate to 12.8%.
In company news, Intel Corp (NASDAQ:INTC) gained 3% in premarket trading after beating second-quarter expectations and issuing a stronger outlook.
American Express Company (NYSE:AXP) has fallen 2.3% despite an earnings beat, while Verizon Communications Inc (NYSE:VZ, XETRA:BAC) is down 1.3% and NextEra Energy Inc (NYSE:NEE) has slipped 0.7% following mixed quarterly updates.
Elsewhere, a senior Korean official said Samsung and SK Hynix are expected to announce “very large-scale” contracts with leading US technology companies during President Lee Jae-myung’s visit to Silicon Valley, which starts today.
NextEra Energy (NEE - Free Report) reported $7.53 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.5%. EPS of $1.15 for the same period compares to $1.05 a year ago.
The reported revenue represents a surprise of -5.76% over the Zacks Consensus Estimate of $7.99 billion. With the consensus EPS estimate being $1.09, the EPS surprise was +5.51%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how NextEra performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Revenues- NextEra Energy Resources (NEER): $2.53 billion versus the two-analyst average estimate of $3.27 billion. The reported number represents a year-over-year change of +32.3%.Operating Revenues- Florida Power & Light (FPL): $4.9 billion versus the two-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +4%.Operating Income (Loss)- Florida Power & Light (FPL): $1.82 billion compared to the $2 billion average estimate based on two analysts.Operating Income (Loss)- Corporate & Other: $-103 million versus the two-analyst average estimate of $-38.5 million.Operating Income (Loss)- NextEra Energy Resources (NEER): $519 million versus the two-analyst average estimate of $1.53 billion.View all Key Company Metrics for NextEra here>>>
Shares of NextEra have returned +2.4% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
NextEra Energy (NEE -0.30%) reported its second-quarter financial results on June 24. The utility giant generated robust earnings growth, as its adjusted earnings per share surged 9.5%. The company is benefiting from strong power demand growth from AI data centers and other catalysts.
Here’s a closer look at that report and whether investors should buy the utility stock right now.
Image source: The Motley Fool.
Another strong showingNextEra Energy reported $2.4 billion, or $1.15 per share of adjusted earnings, in the second quarter, up 9.5% compared to the year-ago period. Both the utility’s businesses, FPL and Energy Resources, delivered strong results.
The company’s regulated electric utility in Florida, FPL, generated $1.4 billion in net income, up nearly 11% year over year. It continues to benefit from Florida’s economic growth, adding more than 90,000 customers over the past year. That’s driving heavy capital spending ($12 billion to $13 billion this year) to support the state's growing power demand. FPL is seeing robust demand from data center developers and other large customers.
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Meanwhile, its clean energy infrastructure development platform, NextEra Energy Resources, reported earnings growth of more than 18% to about $1.3 billion. It placed 1.1 gigawatts (GW) of new projects into service over the past three months to support growing power demand from other utilities and large customers. The company also energized a new 137-mile transmission line in New Mexico to strengthen grid reliability in the state.
Powerful growth still aheadNextEra Energy believes it will continue growing briskly for years to come. Its baseline expectation is to deliver more than 8% compound annual adjusted earnings per share growth through 2032, with a target to maintain that same growth rate from 2032 to 2035. It has multiple growth catalysts. FPL has roughly 21 GW of large-load interest from data center developers and other large power users, including 12 GW in advanced discussions that could begin delivery as soon as 2028. Meanwhile, NextEra Energy Resources has 35.1 GW in its backlog, most of which it expects to deliver by the end of the decade. It also remains on track to restart its Duane Arnold nuclear power plant by 2029 to support Google’s growing power demand and was selected to develop two large-scale transmission projects in Illinois.
While NextEra already has robust growth in its existing businesses, it aims to further enhance its strong growth profile by combining with Dominion. That $67 billion deal will create the world’s largest regulated electric utility. NextEra expects the deal will accelerate its earnings growth rate to more than 9% annually through 2032, with a target of maintaining that rate through 2035. Dominion’s electric utility in Virginia is benefiting from strong power demand growth from data centers, and the combined company would be better positioned to support it.
NextEra’s robust growth has helped power its stock, which is up more than 22% over the past year. As a result, it currently trades at more than 22 times forward earnings, which is higher than its peers (19 to 21 times range) and the S&P 500 (21.5x).
However, that’s still a fairly attractive value to pay for this leading utility stock. It’s the largest player in the space and growing faster than most of its peers. It could generate double-digit average annual total returns from here by adding its growth rate to its current dividend yield (2.8%). That’s a strong return from a lower-risk investment, making NextEra still look like a compelling buy after its earnings report.
NextEra Energy NYSE: NEE reported second-quarter 2026 adjusted earnings per share of $1.15, while adjusted EPS for the first six months of the year rose 9.8% from a year earlier. Chairman, President and CEO John Ketchum said the results reflected continued execution at Florida Power & Light Co. and NextEra Energy Resources amid rising electricity demand.
Experian today announced that Fastly (NASDAQ: FSLY), a leading global edge cloud platform, has joined the growing Experian Agent Trust⢠ecosystem. Together,
Oracle (ORCL) won a $7 billion contract with the U.S. Department of War. Shares of the cloud giant didn't move much ahead of Friday's open as the stock stalls near 52-week lows.
Key Takeaways Digital Realty beat Q2 estimates as revenues rose 28.9% and core FFO per share increased 13.9% year over year.DLR posted record signed lease backlog and strong bookings, with renewal rental rates rising sharply.DLR raised 2026 core FFO and revenue guidance after expanding capacity through acquisitions and land buys. Digital Realty Trust, Inc. (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate of $1.98 by 7.6%.
Total operating revenues rose 28.9% year over year to $1.92 billion and beat the consensus mark of $1.66 billion. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter. The company raised its 2026 core FFO guidance.
As a result, the stock was trading almost 3% higher during the pre-market session today.
DLR's Bookings Reflect Broad-Based DemandDigital Realty signed bookings expected to generate $307 million of annualized GAAP base rent at 100% share. At DLR's share, bookings totaled $208.5 million, with the 0-1-megawatt category contributing $87.8 million and interconnection adding $20.5 million.
Digital Realty Builds Record Revenue VisibilityThe backlog of signed but not yet commenced leases reached a record $1.9 billion of annualized GAAP base rent at 100% share. Digital Realty's share was $1.4 billion.
The weighted-average lag between new lease signing and contractual commencement was nine months. In July, the company also signed two hyperscale leases representing $410 million of annualized GAAP base rent at 100% share, or $205 million at DLR's share.
DLR Benefits From Strong Renewal PricingDigital Realty signed renewal leases representing $262 million of annualized cash rental revenues. Rental rates increased 25.4% on a cash basis and 32% on a GAAP basis, reflecting a favorable pricing environment. Portfolio occupancy ended the quarter at 90.2%, up from 89.7% a year earlier.
DLR Expands Capacity Through InvestmentsDigital Realty acquired Kansas City-area land for about $475 million to support up to 2 gigawatts of utility power. It also purchased a 64% stake in three fully leased Northern Virginia data centers containing 288 megawatts of IT capacity at a gross value of about $7.8 billion.
Other investments included two Malaysian data centers and adjacent land for about $134 million, Marseille land for $53.1 million and Atlanta-area land for $20 million. The global portfolio ended June with roughly 3.1 gigawatts of in-place IT capacity and 8.5 gigawatts of buildable capacity.
Digital Realty Maintains Financial FlexibilityTotal debt stood at roughly $18.6 billion at quarter-end. Net debt to Adjusted EBITDA remained at 4.7 times, while fixed-charge coverage improved to 5.2 times from 4.7 times a year ago.
From the prior earnings release through June 30, DLR sold about 6.2 million shares through its at-the-market program for net proceeds of approximately $1.2 billion. Year-to-date proceeds totaled about $2.5 billion from 13.5 million shares.
DLR Raises 2026 OutlookDigital Realty raised its 2026 core FFO per share outlook, excluding net promote, to $8.15-$8.20 from $8.00-$8.10. The revised range stands above the current Zacks Consensus Estimate of $8.04.
The company also lifted its revenue outlook, excluding promote income, to $6.85-$6.95 billion from $6.65-$6.75 billion. Adjusted EBITDA is now projected at $3.75-$3.85 billion, while development capital expenditures, net of partner contributions, are expected at $4.25-$4.75 billion.
Currently, DLR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings ReleasesWe now look forward to the earnings releases of other REITs like Regency Centers (REG - Free Report) and Ventas (VTR - Free Report) , both slated to report on July 29.
The Zacks Consensus Estimate for Regency Centers’ second-quarter 2026 FFO per share is pegged at $1.20, implying a 3.45% year-over-year increase. REG currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Ventas’ second-quarter 2026 FFO per share is pegged at 96 cents, calling for a 10.3% year-over-year jump. VTR currently carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Key Takeaways FDX posted 12.5% revenue growth in fiscal 2026's fourth quarter, led largely by B2B services. FedEx appears more attractive than UPS based on valuation, pricing and financial leverage. FedEx targets $2 billion in cost savings by end-2027 and up to $1 billion in 2026 share buybacks. United Parcel Service (UPS - Free Report) and FedEx (FDX - Free Report) , with market capitalizations of $98.46 billion and $75.95 billion, respectively, are leading players in the Zacks Transportation-Air Freight and Cargo industry. These well-established companies are synonymous with parcel delivery and logistics.
Delivery trucks from both companies have become a common sight, reflecting their dominance in handling the bulk of parcel shipments. With that backdrop, let’s take a closer look at their financial performance, growth prospects and ongoing challenges. As a result, let's find out which transportation heavyweight might be the smarter investment for now.
The Case for UPSUPS has been facing prolonged revenue pressure, as geopolitical instability and persistent inflation continue to dampen consumer confidence and economic growth expectations. Uncertainty related to tariffs and geopolitical woes has further intensified these challenges.
UPS’ decision to scale back business with Amazon (AMZN - Free Report) is expected to have kept near-term volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network.
UPS is now focusing on improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.
The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to aid its per-package revenues. Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to keep performing well.
The De Minimis exemption expired last year. The trade exemption allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. This development has hurt the International segment volumes in recent quarters by diverting volumes away from the China-U.S. trade lane.
Moreover, UPS’ dividend payout ratio stands at 97, raising questions about its long-term ability to maintain current dividend levels. The company’s elevated dividend payout is hurting its operational flexibility.
The Case for FDXIn the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter.
In the quarter, the majority of the revenue growth was driven by business-to-business (B2B) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.
To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.
Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.
Despite ongoing headwinds, FedEx benefits from a strong brand and an extensive logistics network capable of generating stable long-term cash flows. Strategic investments continue to enhance the service offerings and strengthen its competitive position.
FedEx spun off its struggling Freight division in June 2026, thereby focusing on the core operations. The erstwhile segment of FDX was suffering due to the continued weakness in U.S. industrial production, which dampened demand across the less-than-truckload industry.
FDX’s dividend payout ratio currently stands at 24%, much lower than UPS’. So FDX, unlike UPS, does not face concerns about its long-term ability to maintain current dividend levels.
Taking a Look at the Two Companies’ Price Performance and ValuationIn a year, FDX’s shares have performed much better than those of UPS
One-Year Price ComparisonImage Source: Zacks Investment Research
UPS is trading at a forward sales multiple of 1.05X, whereas FDX’s forward sales multiple sits at 0.79X, suggesting that the former’s shares are pricier.
Image Source: Zacks Investment Research
Leverage ComparisonFDX’s lower debt-to-capital ratio implies that it relies less on debt financing and has a stronger equity position.
Image Source: Zacks Investment Research
End NoteAgreed that both FedEx and UPS continue to experience revenue pressure amid sluggish demand conditions. To navigate the challenging environment, each company is pursuing cost-reduction initiatives.
From a valuation as well as pricing standpoint, FDX appears more attractive than UPS. FedEx also maintains an edge over UPS in terms of financial leverage. Dividend sustainability concerns are not present in FDX, unlike UPS.
Taking all these factors into account, FDX appears to be the more compelling choice than UPS, even though both stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm , a national shareholder rights litigation firm, reminds investors of a class action lawsuit against First Solar, Inc. (“First Solar” or “the Company”) (NASDAQ: FSLR) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between February 26, 2025 and February 24, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 24, 2026.
Enbridge (ENB - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil and natural gas transportation and power transmission company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -8.5%.
Revenues are expected to be $10.85 billion, up 0.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.5% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Enbridge?For Enbridge, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.59%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Enbridge will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Enbridge would post earnings of $0.69 per share when it actually produced earnings of $0.71, delivering a surprise of +2.90%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Enbridge doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerEnbridge (ENB - Free Report) , another stock in the Zacks Oil and Gas - Production and Pipelines industry, is expected to report earnings per share of $0.43 for the quarter ended June 2026. This estimate points to a year-over-year change of -8.5%. Revenues for the quarter are expected to be $10.85 billion, up 0.9% from the year-ago quarter.
The consensus EPS estimate for Enbridge has been revised 2.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.59%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Enbridge will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
A common question among income investors is on the better investment between Realty Income NYSE:O and Schwab US Dividend Equity ETF (SCHD), two of the most common dividend assets.
Realty Income has become a $60 billion behemoth and a dividend aristocrat after hiking dividends for over 31 consecutive years. It has no expense ratio and has a dividend yield of 5%.
SCHD ETF has recently hit $100 billion in assets under management (AUM) and a tiny expense ratio of 0.03%. So, which is a better investment?
Realty Income is a top company in the real estate investment trust (REIT) industry. Its business model is relatively simple. It acquires freestanding commercial properties and then leases them to tenants across various creditworthy clients. Its top clients are companies like Dollar General, 7-Eleven, Walgreens, Family Dollar, and Life Time Group.
The company uses a net lease structure that lets its clients handle everything related to the properties, including taxes, insurance, and maintenance. At the same time, it has rent escalation clauses, enabling it to have a good revenue visibility in the future.
Realty Income uses long-term debt, equity, and retained cash flow to fund its property acquisitions. This approach helps it to have low financing costs over time. For example, its 2035 bonds are yielding 5.4%, slightly higher than the government bond yield of 4.7%.
Realty Income is known for its trademarked phrase “The Monthly Dividend Company” in that it pays dividends each month. This makes it a popular company among people in fixed income.
The company has expanded both organically and through acquisitions. It bought Spirit Realty in 2023 in a $9.3 billion deal and Encore Boston Harbor in a $1.7 billion deal. It also bought CIM Real Estate Finance Trust, American Realty Capital, and VEREIT.
Realty Income has moved to expand its business to other areas. Most recently, it formed a joint venture with Cloud Capital to invest in hyperscale data centers in a deal worth $6 billion. It will invest $1.4 billion and have a 45% equity stake in three assets in Northern Virginia.
SCHD, on the other hand, is one of the largest dividend ETFs in the world with over $100 billion in assets. This fund invests in companies that have consistently paid and increased their dividends.
It invests in companies across most industries and excludes REITs. Some of its top firms in the fund are Abbott Laboratories, Merck, UnitedHealth, Amgen, Procter & Gamble, and Home Depot.
The fund has added billions of dollars in the past few months, and this trend may continue because it is widely seen as an anti-AI fund.
SCHD and Realty Income are different assets and target different investors. In terms of returns, SCHD has been a better investment by far. Its total return this year was 22%, higher than Realty Income’s 17.8%.
The same happened in the last five years. SCHD jumped by 55%, while Realty Income soared by 22% in this period. It is also a more diversified fund, with losers being offset by gainers. Realty Income, on the other hand, is an individual company that may be exposed to risks in the real estate industry.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.87, which compares to its industry's average of 12.54. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29, all within the past year.
We also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's PEG compares to its industry's average PEG of 0.78. Over the last 12 months, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
Another notable valuation metric for CF is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.40. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors should note that CF has a P/CF ratio of 6.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.60. Over the past year, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
Value investors will likely look at more than just these metrics, but the above data helps show that CF Industries is likely undervalued currently. And when considering the strength of its earnings outlook, CF sticks out as one of the market's strongest value stocks.
Wall Street expects a year-over-year increase in earnings on higher revenues when LyondellBasell (LYB - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis oil refiner and chemical company is expected to post quarterly earnings of $3.56 per share in its upcoming report, which represents a year-over-year change of +474.2%.
Revenues are expected to be $8.9 billion, up 16.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 21.38% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for LyondellBasell?For LyondellBasell, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.07%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that LyondellBasell will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that LyondellBasell would post earnings of $0.31 per share when it actually produced earnings of $0.49, delivering a surprise of +58.06%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
LyondellBasell doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Chemical - Diversified industry, Eastman Chemical (EMN - Free Report) , is soon expected to post earnings of $1.8 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +12.5%. This quarter's revenue is expected to be $2.37 billion, up 3.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Eastman Chemical has been revised 4.9% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.93%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Eastman Chemical will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
AbbVie earns a buy rating, supported by accelerating top and bottom-line growth and a compelling valuation at 18x forward P/E. ABBV offers a 2.7% forward dividend yield, outperforming peers by 68%, and maintains a 12-year streak of dividend growth. Dividend growth remains central to ABBV's shareholder-friendly capital allocation, with a payout ratio of 59% and consensus expectations for continued increases.
The market expects AbbVie (ABBV - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis drugmaker is expected to post quarterly earnings of $3.66 per share in its upcoming report, which represents a year-over-year change of +23.2%.
Revenues are expected to be $16.81 billion, up 9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.11% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AbbVie?For AbbVie, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.01%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AbbVie would post earnings of $2.62 per share when it actually produced earnings of $2.65, delivering a surprise of +1.15%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AbbVie doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Palantir Technologies Inc. (PLTR - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Palantir Technologies currently has an average brokerage recommendation (ABR) of 1.77, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.77 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 20 are Strong Buy, representing 66.7% of all recommendations.
Brokerage Recommendation Trends for PLTR
Check price target & stock forecast for Palantir Technologies here>>>
While the ABR calls for buying Palantir Technologies, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is PLTR a Good Investment?Looking at the earnings estimate revisions for Palantir Technologies, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $1.48.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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 #2 (Buy) for Palantir Technologies. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Palantir Technologies may serve as a useful guide for investors.
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Nvidia CEO Jensen Huang, seen here via video link alongside Microsoft CEO Satya Nadella, said the world needs open-weight AI models. Jeffrey Dastin/Reuters In his first-ever post on X, Nvidia CEO Jensen Huang called attention to how some of the biggest names in AI and tech are rallying together to defend the future of open-weight AI models.
"AI will transform every industry, power every company, and be built by every country," Huang wrote on X. "Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty."
On Friday, Nvidia, Microsoft, Meta, Mistral, and others signed an open letter that urges US policymakers not to crack down on open-weight AI models.
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.
AI will transform every industry, power every company, and be built by every country.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C
— Jensen Huang (@JensenHuang) July 24, 2026 Their statement amounts to a full-throated endorsement of open-weight AI models at a time when top Trump administration officials have suggested they might take action against Moonshot AI, the creator of the Kimi K3, the world's most powerful open-weight AI model.
"Our AI leadership will be judged not by one frontier AI model, but by whether the United States builds a strong, open ecosystem that diffuses into every sector," the signatories wrote in the letter.
The two biggest absences in the list are OpenAI and Anthropic, widely viewed as the world leaders in the frontier AI model race. Unlike Anthropic's Fable 5 and OpenAI's GPT-5.6-Sol, Kimi K3 as an open-source model will soon be available for download and customization. Both companies would stand to gain if the US government either directly blocks or significantly impedes China-based open model makers like Moonshot AI. Google also did not sign the letter.
OpenAI CEO Sam Altman later said he was "glad to see" the support for open weight models.
"i want the US to win in AI both in open source and proprietary models," Altman wrote on X.
While SpaceX is not listed as a signatory, Elon Musk later signaled his support for the message.
"This has my full support," Musk wrote on X, quoting Huang's tweet. "Jensen is right."
While the letter does not mention Moonshot specifically, its authors portray the broader development of open AI models as akin to how open software revolutionized computing in the 1980s.
"Open source did more than lower the cost of software; it created a shared foundation of knowledge on which generations of American engineers and entrepreneurs built their institutional sovereignty," they wrote.
China has thus far dominated the development of open-weight AI models, despite the US' legendary reputation in the creation of open-source software. Two of the biggest modern names in open software, Mozilla and the Linux Foundation, also signed onto the letter.
In the US, Nvidia's Nemotron model is one of the largest open weight models, though its performance pales in comparison to rivals like Kimi K3. Alexandr Wang, chief AI officer of Meta, has said that his Meta Superintelligence Labs team remains committed to open models and is developing an open variant of its Muse Spark model. Reflection AI, a startup founded by former Google DeepMind researchers, is also preparing its own open model.
On Wednesday, Michael Kratsios, director of the White House Office of Science and Technology Policy, publicly accused Moonshot of developing Kimi K3 by distilling the model from Anthropic's Fable 5. Distillation, the process of training a less powerful model on the outputs of a more powerful one, is a controversial but commonly used practice in AI development. At the same time, companies like Anthropic have accused their Chinese counterparts of abusing the distillation process to the point of essentially ripping off their intellectual property.
Earlier this week, Treasury Secretary Scott Bessent suggested that the US could sanction companies that engage in such distillation, which he compared to theft.
The letter defends the distillation process more broadly, but does open the door to the possibility that companies like Nvidia, Microsoft, and Meta would support a crackdown on those proven to be bad actors.
"Unlawful efforts to extract value from closed models raise legitimate concerns," they wrote. "Those concerns should be addressed through targeted legal and commercial frameworks rather than sweeping restrictions on techniques that play an important role in AI innovation."
In total, a combination of 25 companies, organizations, and platforms signed on to the letter. They are the American Innovators Network, Andreessen Horowitz, Arcee AI, Arena, Black Forest Labs, Box, CrowdStrike, Dell Technologies, Emergence Capital, Hugging Face, IBM, The Linux Foundation, Mariana Minerals, Meta, Microsoft, Mistral, Mozilla, Nvidia, Palantir, Perplexity, Reflection, Replit, ServiceNow, Telnyx, and Y Combinator.
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Brent D. Griffiths You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.
Shares of Palantir Technologies Inc. (PLTR - Free Report) have gained 15% over the past four weeks to close the last trading session at $123.37, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $193.48 indicates a potential upside of 56.8%.
The mean estimate comprises 27 short-term price targets with a standard deviation of $35.16. While the lowest estimate of $90.00 indicates a 27.1% decline from the current price level, the most optimistic analyst expects the stock to surge 106.7% to reach $255.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for PLTR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why PLTR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 0.7% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, PLTR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PLTR could gain, the direction of price movement it implies does appear to be a good guide.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Micron (MU - Free Report) .
Micron currently has an average brokerage recommendation (ABR) of 1.32, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 41 brokerage firms. An ABR of 1.32 approximates between Strong Buy and Buy.
Of the 41 recommendations that derive the current ABR, 32 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 78.1% and 12.2% of all recommendations.
Brokerage Recommendation Trends for MU
Check price target & stock forecast for Micron here>>>
The ABR suggests buying Micron, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MU a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 20.3% over the past month to $73.85.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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 #1 (Strong Buy) for Micron. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Micron may serve as a useful guide for investors.
Easy come, easy go. Micron (MU -4.90%) stock closed up 3.2% Thursday evening, but it's giving all those gains back this morning, with shares down 5.7% through 10 a.m. ET.
And yet, the news for Micron today is actually pretty good.
Image source: Micron.
Citi says "buy chip stocks" Let's start with the news from Wall Street, where Citigroup is calling the recent broad-based sell-off in semiconductor stocks a buying opportunity for investors. Insatiable data center demand is driving sales of AI chips and memory chips from companies such as Micron to support them, says Citi. Roughly 34% of semiconductor demand comes from this direction, and Citi sees demand continuing to outstrip supply through 2030.
Automotive and industrial chips demand makes up 21% of the market, and is growing as well. Really, the only market for chips that's weakening is in PCs, mobile phones, and consumer electronics. That's 42% of the market -- a big chunk -- but it's only weakening because memory costs so much, and there's not enough supply!
Suffice it to say, all of this sounds pretty bullish for Micron, which supplies the memory and reaps the high prices.
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Intel proves demand is strong On top of this good news, Intel (INTC -4.77%) just reported a big earnings beat -- pro forma profits of $0.42 per share that were twice what Wall Street expected -- and sales growing 25% to $16.1 billion, beating estimates and showing Intel's fastest revenue growth in nearly 15 years.
Intel CEO Lip-Bu Tan says "AI is driving unprecedented demand for compute," with notable growth in sales of Intel Xeon processors for inference solutions (i.e., answering questions). That's a segment of the artificial intelligence market known to require especially large amounts of memory chips to function.
These are all reasons to buy Micron stock -- not sell it.
Citigroup is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Micron Technology. The Motley Fool has a disclosure policy.
SK Hynix (NASDAQ:SKHY) ADRs are down 6% in Friday morning trading to $158.56 as a Korea-led memory selloff pulls the entire chip complex lower. Micron Technology (NASDAQ:MU | MU Price Prediction) stock is off 6% to $929, SanDisk (NASDAQ:SNDK) shares are down 9% to $1,467, and Western Digital (NASDAQ:WDC) stock is trading 6% lower at $523.48.
The Roundhill Memory ETF (CBOE:DRAM) is down 7% to $54, confirming a broad group retreat rather than a single-name story. The NASDAQ 100 is down 1% and has now fallen for a third straight session to a one-month low, so today’s memory weakness is riding on top of a broader tech pullback.
The move caps a volatile stretch for the memory/storage group after a huge run higher, and the pullback still leaves the sector deeply in the green for the year.
Korea-Led Selloff Sparks Sympathy Move The catalyst traces to an overnight KOSPI selloff in South Korea led by Samsung and SK Hynix. U.S. memory names have become increasingly bundled with the KOSPI given its heavy weighting to those two, so weakness in Seoul is flowing straight through to Micron, SanDisk, and Western Digital shares.
Layered on top is a broader tech pullback. The NASDAQ has fallen three sessions in a row after results from Alphabet‘s (NASDAQ:GOOGL) Google and Tesla (NASDAQ:TSLA), with U.S.-Iran escalation adding pressure.
Notably, Micron is falling even after Tesla CEO Elon Musk praised the company’s “very significant allocation” of memory chips to Tesla on Thursday’s earnings call. That underscores today’s action as a group and macro move, not a Micron-specific problem.
Pullback Inside a Massive Rally Today’s drop lands inside one of the sharpest sector runs in years. Micron stock is up 227% year to date (YTD), SanDisk shares have gained 526% YTD, and Western Digital stock is up 209% YTD, all fueled by AI memory demand and blowout earnings.
Micron’s fiscal Q3 2026 revenue landed at $41.46 billion, up 345.7% year over year (YoY), with non-GAAP EPS of $25.11 against a $20.28 consensus. Micron guided Q4 revenue to $50 billion plus or minus $1 billion and EPS to $31, and CEO Sanjay Mehrotra highlighted “the strategic value of memory in the AI era.”
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
SanDisk’s most recent quarter posted revenue of $5.95 billion with EPS of $23.41, and Western Digital delivered $3.34 billion in revenue with non-GAAP EPS of $2.72. None of those numbers explain today’s drop, which is why the DRAM ETF’s decline is a cleaner read on the sector rotation.
Micron stock now trades at a forward P/E ratio of 6x, and analyst price targets sit near $1,507, meaningfully above current levels. SanDisk shares carry a heavier trailing P/E ratio of 55x, which helps explain why the highest-multiple names in the group are giving back the most today.
Sentiment and Prediction Markets Flash Caution Polymarket traders are pricing a 97% probability that Micron stock closes lower today, with the week likely settling near $920. Longer-dated markets show only a 12% probability that Micron shares finish July above $1,100, suggesting limited near-term bounce conviction.
Reddit sentiment on Micron cooled from a bullish reading of 62 earlier in the week to a neutral 54, mirroring the fade in retail enthusiasm. The VIX has jumped to 18.7, up 12.4% on the day, though it remains inside its normal range.
What to Watch SK Hynix reports earnings on July 29, and pre-print positioning may explain part of today’s Korea-side pressure. Intel (NASDAQ:INTC) stock is also weak at $97, suggesting that the softness extends beyond memory into the broader semiconductor complex.
Investors can watch for whether Micron and SanDisk shares hold their recent breakout levels into the close, and whether any updates from the next Korean session shift the tone. The DRAM ETF’s top three holdings, Samsung, SK Hynix, and Micron, account for 72% of the fund’s net assets, so investors should consider keeping their position sizes modest given that concentration and today’s volatility.
The AI memory super cycle thesis remains intact on the earnings side, but sentiment has clearly rotated. Traders may want to watch for whether today’s lows hold or give way as the session moves toward Friday’s close.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
SummaryMicron Technology, Inc. remains a leading beneficiary of AI infrastructure growth, as expanding memory requirements increase the TAM across HBM, DRAM and NAND.Next-generation frontier models like Kimi K3 are becoming more compute efficient, yet larger parameters, longer context windows and expanding agentic context stores drive substantially higher memory intensity.Lower inference costs allow increased usage within constrained token spend budgets, while making previously uneconomical AI applications viable across new industries and use cases.Greater token usage and broader AI adoption compound the inherently higher memory requirements of larger frontier models, accelerating bit-demand growth that could be additive to Micron's fundamental outlook. JHVEPhoto/iStock Editorial via Getty Images
Renewed market concerns about compute oversupply and AI overspending on the heels of a new round of tech earnings and AI spending updates have added pressure on broader memory industry multiples. Despite being one
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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.
Key Takeaways BlackBerry raised fiscal 2027 revenue guidance after first-quarter revenues climbed 26% to $152.9 million.QNX revenues rose 26% to $72 million, supported by the strong development licenses performance.Secure Communications revenues grew 24% to $74 million on government demand, retention and recurring sales. BlackBerry (BB - Free Report) kicked off fiscal 2027 on a strong note, delivering better-than-expected first-quarter results and raising its fiscal year outlook. The performance was anchored by strong QNX and Secure Communications businesses, but the key question remains whether this momentum can sustain.
Quarterly revenues came in at $152.9 million, marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million.
QNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.
Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.
Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and driving backlog. While still early, management remains positive about securing a design win within the current fiscal year.
Secure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.
Encouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier.
The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction. However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance.
In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.
Let’s Take a Look at BB’s PeersWithin the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pureplay companies. CRWD entered fiscal 2027 with strong momentum, with the fiscal first quarter revenues rising 26% year over year to $1.39 billion and ARR reaching $5.51 billion (up 24%), alongside record net new ARR of $256 million (up 32%). Management emphasized that as enterprises rapidly adopt AI, cybersecurity has become a critical component, creating a massive demand pipeline.
CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion. CRWD raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint
Aptiv PLC (APTV - Free Report) Intelligent Systems segment is seeing increased activity around next-generation ADAS, user experience and vehicle architecture solutions. However, in the near-term Aptiv is navigating a volatile macro backdrop amid OEM and auto industry disruptions and inflationary pressure. For the second quarter of 2026, Aptiv expects revenues (excluding its EDS segment, which spun-off into a new publicly traded company, Versigent) to be between $3.2 billion and $3.4 billion.
APTV has only about 25% of its business outside automotive. The company is seeking to increase penetration in markets such as commercial aerospace and telecom and remains focused on accelerating product development and go-to-market activities.
BB Price Performance, Valuation & EstimatesShares of BlackBerry have lost 16.5% in the past month against the Internet-Software industry’s growth of 11%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 6.74, higher than the industry’s multiple of 4.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm , a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Zillow Group, Inc. (“Zillow” or “the Company”) (NASDAQ: Z) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between February 11, 2025 and May 7, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 10, 2026.
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.
Occidental Petroleum (OXY -0.89%), the oil and gas giant more commonly known as Oxy, set a 52-week high of $67.45 per share on March 31. That year-to-date gain of nearly 60% was mainly fueled by the Middle East conflict's impact on global oil prices.
But after hitting a four-year high of $112.25 per barrel in May, WTI crude oil has dropped back to about $92 per barrel. Oxy's stock now trades at about $58. However, if oil climbs above $100 again and stays there, it could easily rise at least 20% by the end of 2026.
Image source: Getty Images.
Why is Oxy's stock pegged to oil prices? Oxy is less diversified than vertically integrated energy giants like Chevron (CVX +0.06%), which owns a balanced mix of upstream, midstream, and downstream businesses. It generates most of its revenue from its upstream business, with a smaller share from its midstream business. It divested its downstream business, OxyChem, at the beginning of 2026.
Upstream exploration and extraction companies are generally more sensitive to oil prices than midstream infrastructure operators and downstream refineries and petrochemical producers. When oil prices are high, upstream companies can grow their revenue faster than their expenses. But when they drop below breakeven levels, their expenses grow faster than their revenue.
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To maintain its current capex and dividends, Oxy needs oil to remain above its breakeven range of $40- $45 per barrel. Its free cash flow (FCF) also grows rapidly at above $60 per barrel. WTI crude oil hasn't traded below $45 per barrel since the worst days of the pandemic in 2020, so Oxy should remain safely above its breakeven levels for the foreseeable future.
What would $100 per barrel oil mean for Oxy? Last month, the price of WTI crude dropped below $70 per barrel as the U.S. and Iran agreed to a ceasefire and peace talks. But since then, the conflict has resumed, and the Strait of Hormuz -- which handles about a quarter of all maritime oil trade -- remains closed.
As oil prices rise again, Oxy is integrating its assets from CrownRock (which it acquired in 2024) to shorten drilling times, cut structural costs, and boost free cash flow. It's also expanding its STRATOS direct air capture (DAC) plant and commercializing its carbon dioxide removal services for large companies.
Therefore, if oil rises above $100 again, Oxy's stock could easily rise about 20% to a new 52-week high of $70. Even at $70, Oxy would still be a bargain at 18 times next year's earnings -- so it could head even higher if elevated oil prices drive more investors back to its stock.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm , a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Regeneron Pharmaceuticals, Inc. (“Regeneron” or “the Company”) (NASDAQ: REGN) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between August 1, 2025 and May 15, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before September 14, 2026.
New York, New York--(Newsfile Corp. - July 24, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Regeneron securities between August 1, 2025 and May 15, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/REGN.
Regeneron Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:
the preliminary statistical assumptions underlying Regeneron's Phase III Fianlimab-Libtayo study were fundamentally flawed; the study's active treatment arm was not demonstrating meaningful clinical differentiation from standard therapies; the study was unlikely to achieve statistical significance with respect to its primary endpoint, even absent overperformance by the control arm; and as a result, the Company's statements regarding the study's design, progress, and prospects were materially false and/or misleading at all relevant times.What's Next for Regeneron Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/REGN, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Regeneron you have until September 14, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Regeneron Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Regeneron Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305583
Source: Bronstein, Gewirtz & Grossman, LLC
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Key Takeaways JNJ, ABT, and GM have all recently raised guidance. Each has seen post-earnings strength, with near-term momentum supported by the updated outlooks. Guidance upgrades are a solid indicator of fundamental business strength. The 2026 Q2 earnings season will continue at a rapid pace in the coming weeks, with many notable companies on the reporting docket. The big banks helped kick the period off positively, though post-earnings reactions haven’t been great for all that have reported.
But General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) have been nice standouts so far, all raising guidance and seeing strength post-earnings.
Guidance upgrades are generally one of the most bullish things to watch for in earnings season, as renewed outlooks can often lead to positive EPS revisions, the strongest driver of a stock’s near-term movement.
General Motors Raises AgainGeneral Motors posted a double-beat relative to our consensus expectations, with EPS reflecting a positive surprise of 14%. Sales of $48.0 billion came in 3% above our consensus sales estimate.
The company raised its full-year 2026 EBIT adjusted guidance for the second time this year, with adjusted EPS guidance also getting raised. And for the cherry on top, it also lifted its automotive operating cash flow outlook, overall reflecting a rock-solid release.
EPS revisions for its current fiscal year got an additional boost from the lifted outlook, with the trend overall remaining positive for the entire last year. The profitability picture of automotive players is always the key driver behind sentiment, and the updated guidance across key profitability metrics remains a huge positive for GM’s share momentum overall.
Image Source: Zacks Investment Research
Abbott Laboratories Bounces BackAbbott Laboratories similarly posted a double-beat relative to our consensus expectations, with adjusted EPS of $1.31 reflecting a 2.3% beat while sales of $12.6 billion came in roughly 1% ahead of expectations.
The company lifted its adjusted EPS guidance to $5.45-$5.60, modestly higher than the previous $5.38-$5.58 per share range. It also reaffirmed its current-year comparable sales guidance, now expecting accelerating revenue and earnings growth in the second half of the year.
The stock has had a rough YTD performance overall, but the release has helped keep momentum going in a positive direction. Importantly, it reflects the first instance of the stock seeing positive gains over the last four quarters.
The EPS revisions picture for its current fiscal year has finally started to show positive momentum following the release, with the more recent revisions definitely holding more weight from a near-term perspective. Continued positivity on the revisions front will support further share momentum, with the current 17.3X forward 12-month earnings multiple trading at a significant discount to the 23.3X five-year median.
Image Source: Zacks Investment Research
Johnson & Johnson Keeps Cruising Johnson & Johnson beat on both the top and bottom line in its recent release, continuing a streak of earnings excellence. In fact, the company has posted a double-beat in nine consecutive quarters.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
EPS revisions for its current fiscal year have followed the upgrade, continuing the bullish trend established over the past year. The stock overall reflects a highly defensive investment given its consistent revenue-generating nature throughout many economic cycles.
Image Source: Zacks Investment Research
Bottom Line
Guidance upgrades are always a bullish development to watch for in earnings releases, commonly leading to positive post-earnings share reactions. While it isn’t a guarantee that a stock will pop just because it raised its outlook, it still remains a favorable factor from a fundamental standpoint. Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors.
All three stocks above - General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) – have recently upped their outlooks. While they may not be as flashy as high-flying tech stocks amid the AI craze, their improving business fundamentals can’t be overlooked.
Key Takeaways LLY's TRIUMPH-2 study showed retatrutide drove up to 20.8% weight loss and A1C reductions at 80 weeks.TRIUMPH-3 showed LLY's retatrutide delivered up to 22.6% weight loss in severe obesity at 80 weeks.LLY said the latest data will support filings for retatrutide in the United States in Q1 2027. Eli Lilly (LLY - Free Report) announced positive top-line data from two late-stage studies evaluating its next-generation, experimental triple-acting incretin, retatrutide, in patients with obesity or those who are overweight as well as some of its most serious complications – type II diabetes and established cardiovascular disease.
The phase III TRIUMPH-2 study is under a basket design evaluating the safety and efficacy of once weekly retatrutide versus placebo in participants with type II diabetes and obesity or those who are overweight. Patients in the study were randomized in a 1:1:1:1 ratio to receive retatrutide (4 mg, 9 mg, 12 mg) or placebo over a period of 80 weeks.
Meanwhile, the phase III TRIUMPH-3 study is evaluating the safety and efficacy of once-weekly retatrutide versus placebo in participants with severe obesity and established cardiovascular disease. Patients in this study were randomized in a 1:1:2 ratio to receive retatrutide 9 mg, 12 mg, or placebo over a period of 80 weeks.
Year to date, Lilly’s shares have risen 10.7% compared with the industry’s 11.8% rally.
Image Source: Zacks Investment Research
LLY’s Retatrutide Scores Big in Latest Obesity StudiesData from the TRIUMPH-2 study showed that treatment with all doses of retatrutide (4 mg, 9 mg, 12 mg) led to substantial weight loss and improved glycemic control at 80 weeks in adults with type II diabetes and obesity or overweight. Treatment with retatrutide 4 mg, 9 mg, and 12 mg led to an average weight loss of 29.8 lbs (12.7%), 45.4 lbs (19.1%), and 49.6 lbs (20.8%), respectively, in the given patient population, at 80 weeks.
Data from the TRIUMPH-3 study showed that treatment with retatrutide (9 mg, 12 mg) led to an average weight loss of up to 55.8 lbs (22.6%) at 80 weeks in patients with severe obesity and established cardiovascular disease.
Importantly, treatment with retatrutide meaningfully reduced certain cardiovascular risk factors, with the highest dose (12mg) delivering average reductions of 37% in triglycerides, 16.5% in non-HDL cholesterol, 9.3 mmHg in systolic blood pressure, 7.5 in (19.0 cm) in waist circumference, and 51.2% in high-sensitivity C-reactive protein (hsCRP) in the TRIUMPH-3 study.
LLY’s Previous Phase III Wins With RetatrutideWe remind investors that the success of the phase III TRIUMPH-2 and TRIUMPH-3 obesity studies marks the fourth and fifth positive phase III data readout for Eli Lilly’s retatrutide.
In May 2026, Lilly announced that the phase III TRIUMPH-1 study, which evaluated the efficacy and safety of three doses (4 mg, 9 mg and 12 mg) of retatrutide for 80 weeks against placebo in adults with obesity or overweight, met its primary endpoint.
In March 2026, Eli Lilly reported that the late-stage TRANSCEND-T2D-1 study of once-weekly retatrutide in adults with T2D and inadequate glycemic control met its primary endpoint.
In late 2025, Eli Lilly reported meeting all primary and key secondary endpoints in the late-stage TRIUMPH-4 study, which evaluated the candidate in adults with obesity or overweight and knee osteoarthritis, without diabetes.
Retatrutide is being evaluated in several phase III studies for obesity and overweight with at least one weight-related medical problem, T2D, knee osteoarthritis pain, moderate-to-severe obstructive sleep apnea (OSA), chronic low back pain, cardiovascular and renal outcomes and metabolic dysfunction-associated steatotic liver disease.
Importantly, with the latest results from the TRIUMPH-2 and TRIUMPH-3 studies, Lilly now has the data package that will support global regulatory filings for retatrutide as a potential treatment for obesity, knee osteoarthritis pain and OSA.
The company plans to submit a biologics license application for retatrutide to the FDA in the first quarter of 2027. However, the timeline seems a little delayed from the prior expectation of filing retatrutide for obesity and knee osteoarthritis pain in 2026. If approved, retatrutide could become another multibillion-dollar product.
Retatrutide represents a new generation of “triple-action” therapy targeting three biological pathways — GLP-1, GIP and glucagon — potentially offering greater weight-loss and metabolic benefits than existing medicines, which mostly act on one or two biological pathways. LLY’s approved obesity drug Zepbound targets GLP-1 and GIP, while Novo Nordisk’s (NVO - Free Report) blockbuster obesity drug Wegovy activates only GLP-1.
LLY’s Competition in the Obesity SpaceEli Lilly and Novo Nordisk presently dominate the obesity market.
Novo Nordisk gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. In early April 2026, Lilly gained FDA approval for its once-daily oral GLP-1 pill Foundayo (orforglipron) for treating obesity.
Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Zacks RankEli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shareholders in biotechnology, life sciences, and diagnostics solutions company Danaher (DHR -0.58%) have had an interesting week. Their stock crashed early in the week on the release of its second-quarter earnings, only to recover somewhat through the week and start Friday morning having declined 12.1% on the week.
Danaher mixed earnings report Investors can be forgiven for wondering why the stock declined after the company's second-quarter earnings beat estimates and management raised its full-year earnings per share (EPS) guidance to $8.45-$8.60 from a $8.35-$8.55 previously.
Today's Change
(
-0.58
%) $
-1.11
Current Price
$
191.39
The answer lies in the fact that $0.07 to $0.08 of the increase in guidance comes from the earlier-than-expected acquisition of the medical technology company Masimo. In addition, Danaher reduced its full-year core sales growth expectations in its highest margin business, biotechnology.
Full-Year Core Sales Growth Guidance
At April
At July
Second Quarter Adjusted Operating Profit Margin
Biotechnology
6%
Up mid-single-digit
41%
Life Sciences
Up slightly
3%-4%
21%
Diagnostics
Up low-single-digits
Up slightly
24.5%
Total Company
3%-6%
Up mid-single-digit
27.1%
Data source: Company presentations. Table by the author.
What the guidance change means It's not a huge change in overall company sales growth expectations. Still, the reduction in growth expectations for the biotechnology could impact full-year profit margin expectations.
The disappointing news in biotechnology came down to consumables sales coming in "below our expectations as a few large shipments for programs at our commercial customers moved out of the quarter. To give you some additional color, this was a shift in shipment timing at a few large commercial drug manufacturers for molecules that were specced into" according to CEO Rainer Blair on the earnings call.
Image source: Getty Images.
Analysts were quick to ask why the shipments wouldn't simply move to the third and fourth quarters, with Blair outlining that a few chromatography resin shipments had moved out of the year.
There's a good reason to believe the shipments will proceed, as shipments can be lumpy in biotechnology. The sell-off appears to be a significant overreaction to an otherwise positive report. If you like the stock long-term, then it could be a good time to pick some up.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Danaher. The Motley Fool has a disclosure policy.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Texas Instruments (TXN - Free Report) Headquartered in Dallas, TX, Texas Instruments, Inc. is an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.
TXN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TXN has a Growth Style Score of B, forecasting year-over-year earnings growth of 43.7% for the current fiscal year.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $7.83 per share. TXN boasts an average earnings surprise of +8.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TXN should be on investors' short list.
Honeywell Technologies (NASDAQ: HON) today announced that its Board of Directors has declared a quarterly dividend payment of $0.70 per share on the Company's
Key Takeaways Honeywell outlines its next phase as a focused automation company after portfolio actions.HON reports stronger orders, 4% organic sales growth and a 9% backlog increase.Honeywell raises 2026 outlook with margin expansion and stronger second-half growth expectations. Honeywell International Inc. (HON - Free Report) used its second-quarter earnings call to outline the next phase of its transformation into a pure-play automation company, with management emphasizing portfolio simplification, stronger orders and improving growth trends.
The company raised its 2026 outlook after stronger-than-expected execution across key businesses, while analysts focused on demand trends, acquisitions, margins and end-market opportunities.
HON Advances Pure-Play Automation StrategyCEO Vimal Kapur said HON has entered a new phase following the separation of Honeywell Aerospace and the completion of portfolio actions designed to create a more focused automation business.
Management highlighted 4% organic sales growth and 16% organic orders growth in the quarter, with stronger demand across segments supporting a 9% increase in ending backlog.
The company said its strategy centers on expanding its installed base and increasing monetization through services, software and outcome-based solutions.
Honeywell Raises 2026 OutlookHoneywell increased its full-year expectations, including organic sales growth of 3% to 4%, segment margin expansion of 250 to 290 basis points and adjusted EPS of $8.05 to $8.35.
Management also expects second-half organic growth of 4% to 6%, supported by improving trends in Process
Automation and Technology and Industrial Automation.
The company maintained its free cash flow outlook of approximately $2 billion for 2026, with management expecting stronger cash conversion in the second half.
HON Sees Broad Demand MomentumHON reported adjusted EPS of $1.95, above the Zacks Consensus Estimate of $1.80, while revenue of $5.19 billion exceeded the Zacks Consensus Estimate of $4.98 billion.
Management pointed to broad-based order strength, noting that short-cycle orders grew double digits across all segments during the quarter.
Building Automation remained a key contributor, with organic sales growth of 9% and margin expansion driven by volume leverage and pricing actions.
Honeywell Expands Growth PlatformsHoneywell completed the acquisition of Johnson Matthey’s Catalyst Technologies business, which management expects to strengthen its Process Automation and Technology portfolio.
Kapur said the deal expands Honeywell’s capabilities across refining, petrochemicals and renewable fuels while increasing its installed base.
Management also discussed opportunities tied to data centers, including building automation, process automation applications and sensing technologies supporting liquid cooling systems.
HON Addresses Segment RecoveryHON said Process Automation and Technology is positioned for a stronger second half, supported by LNG demand, backlog conversion and improving catalyst shipments.
Industrial Automation showed improving momentum, with management citing stronger orders, operational improvements and demand across regions, including China and Europe.
During Q&A, a Wolfe Research analyst asked about the drivers behind the improved outlook, and management pointed to stronger orders trends and confidence entering the second half.
Honeywell Fields Investor QuestionsHoneywell faced questions about Middle East exposure, with management saying collection issues had been modest and that business conditions remained stable under current assumptions.
A Bank of America analyst asked about Process Automation demand outside the Middle East, and management highlighted LNG projects and investment diversification across regions.
Management also addressed Industrial Automation improvements, citing progress in delivery performance, new products and operational execution as drivers of continued recovery.
HON Focuses On Long-Term ExecutionHON entered the post-separation period with management focused on delivering margin expansion, higher recurring revenue exposure and growth from targeted markets.
Executives emphasized that portfolio actions, acquisitions and operational improvements are intended to support long-term financial targets while maintaining focus on automation opportunities.
The company’s near-term priorities remain improving execution, converting backlog and expanding growth in higher-value automation markets.
Zacks Rank And Style Scores SignalsHON carries a Zacks Rank #5 (Strong Sell), indicating that earnings estimate revision trends are currently unfavorable under the Zacks Rank methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F. Zacks Style Scores are designed to evaluate characteristics such as value, growth and momentum, with higher grades indicating stronger relative attributes.
The Zacks Rank can change as analysts update earnings estimates following new company developments and quarterly results.
Key Takeaways AB InBev is expected to post Q2 revenues of $16.3B and EPS of $1.09, both rising y/y.Premium brands, pricing and product mix are expected to have supported growth despite mixed regional volumes.China softness, currency swings, and elevated marketing and input costs may limit margin expansion. Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is slated to release second-quarter 2026 earnings on July 30, before the opening bell. The leading alcohol beverage company is likely to register year-over-year growth in its top and bottom lines when it reports quarterly numbers.
The Zacks Consensus Estimate for AB InBev’s quarterly revenues is pegged at $16.3 billion, indicating 8.6% growth from the year-ago quarter’s reported number. For second-quarter earnings, the consensus mark is pegged at $1.09 per share, suggesting 11.2% growth from the prior-year reported figure. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the company’s earnings per share beat the Zacks Consensus Estimate by 7.8%. It has a trailing four-quarter average earnings surprise of 4.6%.
Factors Likely to Impact BUD’s Q2 ResultsAB InBev’s second-quarter 2026 results are expected to have benefited from disciplined revenue management, continued premiumization and strong brand momentum. The company’s focus on increasing revenue per hectoliter through pricing actions and a favorable product mix, supported by its portfolio of mega brands, is likely to have driven top-line growth. Sustained investments in marketing and brand building, coupled with major global events, are also expected to have strengthened consumer engagement and supported sales in the quarter.
The company’s premium and super-premium portfolio is anticipated to have remained a key growth catalyst. Strong demand for brands such as Corona and Michelob Ultra, along with continued expansion in higher-margin categories, is likely to have supported an improved price mix. The ongoing shift toward premium offerings, complemented by innovation-led product launches, may have helped sustain revenue growth despite mixed volume trends across certain regions.
AB InBev’s expanding presence in the Beyond Beer and non-alcoholic beverage categories is also likely to have contributed to second-quarter performance. These segments continue to gain traction amid evolving consumer preferences and increased demand for differentiated beverage options. Management’s efforts to scale these faster-growing categories are expected to have generated incremental revenues while strengthening the company’s long-term growth prospects.
On the cost front, productivity initiatives and an efficient operating model are expected to have supported profitability. Continued cost-saving measures and operational efficiencies may have partly offset pressures from foreign exchange volatility and elevated input costs. However, increased sales and marketing spending, particularly on global events and brand activations, could have constrained margin expansion during the quarter.
Meanwhile, persistent macroeconomic pressures and region-specific challenges are likely to have weighed on the company’s performance. Volume softness in select markets remains concerning, particularly in China, where inventory adjustments and channel realignment may have pressured revenues. Currency fluctuations and shifting consumer demand patterns could also have affected near-term performance, especially in markets facing uncertain economic conditions.
Q2 Earnings Whispers for BUD StockOur proven model conclusively predicts an earnings beat for AB InBev this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
AB InBev presently has an Earnings ESP of +1.60% and a Zacks Rank #3.
BUD’s Valuation Picture & Stock PerformanceThe stock has a forward 12-month price-to-earnings of 17.53X compared with the five-year high of 22.58X and the Beverages - Alcohol industry’s average of 15.53X.
Image Source: Zacks Investment Research
The recent market movements show that BUD shares have risen 25.6% in the year-to-date period compared with the industry's 15.9% return. The stock has also underperformed the Zacks Consumer Staples sector and the S&P 500’s growth of 9.4% and 9.2%, respectively.
BUD Stock's Price Performance
Image Source: Zacks Investment Research
Other Stocks With the Favorable CombinationHere are some other companies that, according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
Fomento Economico Mexicano (FMX - Free Report) currently has an Earnings ESP of +37.42% and sports a Zacks Rank #1. The company is likely to register growth in the top and bottom lines when it reports second-quarter 2026 numbers. The consensus mark for revenues is pegged at $12.9 billion, which indicates a rise of 19.3% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX’s quarterly earnings per share of 82 cents implies a surge of 95.2% from the year-ago quarter’s actual. The consensus mark has moved down 10.9% in the past 30 days. FMX has a trailing four-quarter negative earnings surprise of 17%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank #3. The company is likely to register growth in the top and bottom lines when it reports second-quarter 2026 numbers. The consensus mark for revenues is pegged at $2.4 billion, which indicates growth of 14.5% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share of 59 cents implies a rise of 13.5% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. MNST has a trailing four-quarter earnings surprise of 9.6%, on average.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank #3. The company is likely to register an increase in the top line when it reports second-quarter 2026 numbers. The Zacks Consensus Estimate for MDLZ’s quarterly EPS is pegged at 67 cents, down 8.2% from the year-ago period. The consensus mark has been unchanged in the past 30 days.
The consensus estimate for Mondelez International’s quarterly revenues is pegged at $9.2 billion, which implies an increase of 2.5% from the prior-year quarter. MDLZ has a trailing four-quarter earnings surprise of 5.4%, on average.
RTX Corp. (NYSE:RTX) on Thursday reported upbeat second-quarter results and raised its full-year financial outlook.
The company reported adjusted earnings of $1.89 per share, beating analysts’ estimate of $1.66 per share, according to Benzinga Pro. Sales increased 14% year over year to $24.71 billion, ahead of estimates of $22.89 billion. Organic sales grew 16%.
RTX raised its full-year adjusted earnings forecast to a range of $7.10 to $7.25 per share from its prior outlook of $6.70 to $6.90 per share. The new guidance is above analysts’ estimate of $6.92 per share.
The company also increased its sales forecast to $95 billion to $96 billion from $92.5 billion to $93.5 billion. Analysts were expecting $94.09 billion. RTX now expects organic sales growth of 8% to 9%, up from its previous forecast of 5% to 6%.
RTX shares gained 2.1% to trade at $213.50 on Friday.
These analysts made changes to their price targets on RTX following earnings announcement.
Wells Fargo analyst David Strauss maintained the stock with an Equal-Weight rating and raised the price target from $200 to $230. Susquehanna analyst Charles Minervino maintained the stock with a Positive and raised the price target from $235 to $245. Considering buying RTX stock? Here’s what analysts think:
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RTX Corporation delivered a robust Q2 2026, with 16% organic sales growth, $2.9B free cash flow, and a record $289B backlog. I raised RTX's full-year sales outlook by $2.5B and EPS guidance by 5.5%, driven by strength in Raytheon, Pratt aftermarket, and Collins OE. Execution risks remain—supply chain capacity, inventory absorption, and margin pressures—but the diversified growth and backlog provide substantial revenue visibility.
Key Takeaways RTX beat Q2 estimates as adjusted sales rose 14% and backlog reached a record $289 billion.RTX lifted 2026 sales, organic growth, adjusted EPS, and free cash flow guidance.RTX saw broad growth across Collins, Pratt & Whitney, and Raytheon with expanding margins. RTX (NYSE: (RTX - Free Report) reported better-than-expected second-quarter 2026 results, with strong execution across its commercial aerospace and defense businesses driving double-digit sales and earnings growth. The aerospace and defense giant also raised its full-year guidance for sales, adjusted earnings per share (EPS), and free cash flow, reflecting robust demand, record backlog, and improved operating performance.
The company posted adjusted EPS of $1.89, which exceeded the consensus estimate of $1.66. Revenues amounted to $24.71 billion, surpassing the consensus mark of $22.88 billion. Adjusted sales increased 14% year over year, or 16% organically, supported by double-digit growth in commercial aftermarket and defense operations.
Commercial Aerospace and Defense Continue to Drive GrowthChairman and CEO Chris Calio said the company delivered another quarter of strong operational execution as demand remained robust across both commercial aerospace and defense markets. RTX ended the quarter with a record $289 billion backlog, up 22% from a year ago.
On the defense side, Raytheon secured nearly $20 billion in awards during the quarter, including more than $5 billion of Patriot GEM-T interceptor orders, over $4 billion of classified awards, and $1.8 billion in AMRAAM missile contracts. Commercial aerospace also remained healthy, with more than $20 billion in original equipment and aftermarket orders.
Pratt & Whitney Makes Progress on GTF RecoveryManagement highlighted continued progress in its geared turbofan (GTF) fleet management plan.
Aircraft-on-ground (AOG) counts for the PW1100 engine family declined another quarter and are now down 25% year to date, supported by a 40%+ increase in MRO output and a 23% reduction in turnaround times.
Pratt & Whitney also received certification for its next-generation GTF Advantage engine and began deliveries to Airbus. The upgraded engine is expected to double time-on-wing performance, with full production transition anticipated in 2028.
Raytheon Capacity Expansion Supports Long-Term DemandRTX continues investing aggressively to meet accelerating global defense demand.
Raytheon announced an additional $100 million investment to expand Patriot GEM-T production and LTAMDS radar testing capacity while also working with NATO partners to broaden the European supplier base for AMRAAM components. At the same time, Pratt & Whitney is investing more than $100 million to expand GTF maintenance capacity across multiple U.S. facilities.
Management also emphasized that the proposed U.S. defense budget and strong international demand continue to support long-term growth, with international awards exceeding $10 billion during the first half of the year.
Segment Performance Remains Broad-BasedCollins Aerospace generated $8.21 billion in revenues, up 8%, benefiting from strong commercial OE, aftermarket, and defense demand.
Pratt & Whitney reported $8.89 billion in revenues, rising 16% year over year as commercial aftermarket sales surged 25% and military sales increased 23%.
Raytheon delivered another standout quarter, with revenues climbing 18% year over year, driven by higher production of Patriot, Standard Missile, and AMRAAM systems. Operating margins expanded across all three business segments.
RTX Raises Full-Year OutlookReflecting strong first-half execution and sustained demand, RTX raised its 2026 financial guidance.
The company now expects:
Adjusted sales of $95.00 billion to $96.0 billion, up from $92.5-93.5 billion.Organic sales growth of 8-9% versus the previous 5-6%.Adjusted EPS of $7.10-$7.25 compared with the previous guidance of $6.70-$6.90.Free cash flow of $8.50-$8.75 billion, with the lower end of the range raised by $250 million.The company now expects:
Adjusted sales of $95.0 billion to $96.0 billion, up from $92.5-$93.5 billion.
Organic sales growth of 8-9% versus the previous 5-6%.
Adjusted EPS of $7.10-$7.25 compared with the prior guidance of $6.70-$6.90.
Free cash flow of $8.50-$8.75 billion, with the lower end of the range increased by $250 million.
The company now expects:
Adjusted sales of $95.0 billion to $96.0 billion, up from $92.5-$93.5 billion.
Organic sales growth of 8-9% versus the previous 5-6%.
Adjusted EPS of $7.10-$7.25 compared with the prior guidance of $6.70-$6.90.
Free cash flow of $8.50-$8.75 billion, with the lower end of the range increased by $250 million.
Management Sees Persistent Strong MomentumDuring the analyst Q&A, executives reiterated confidence that both commercial aerospace and defense markets remain supportive.
Management noted that supply-chain performance continues improving, defense demand remains exceptionally strong both domestically and internationally, and Raytheon's growing mix of mature international programs should continue supporting margin expansion. Executives also indicated that framework defense agreements currently under negotiation are not yet included in backlog, representing additional upside potential if finalized.
Zacks Rank & Key MetricsRTX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of D, Growth Score of B, Momentum Score of A, and an overall VGM Score of B.
Bank of Nova Scotia raised its position in ServiceNow, Inc. (NYSE:NOW – Free Report) by 53.3% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 1,018,036 shares of the information technology services provider’s stock after acquiring an additional 353,749 shares during the period. Bank of Nova Scotia owned approximately 0.10% of ServiceNow worth $106,436,000 as of its most recent filing with the SEC.
Other institutional investors also recently modified their holdings of the company. Brighton Jones LLC grew its holdings in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares during the last quarter. United Bank lifted its position in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock valued at $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. lifted its position in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC boosted its stake in ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after purchasing an additional 609 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.
ServiceNow Stock Performance Shares of NOW stock opened at $92.15 on Friday. The firm has a market cap of $95.00 billion, a price-to-earnings ratio of 57.59, a P/E/G ratio of 1.60 and a beta of 0.96. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $210.20. The firm’s 50-day simple moving average is $104.70 and its two-hundred day simple moving average is $107.77.
ServiceNow (NYSE:NOW – Get Free Report) last released its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.63%. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the prior year, the firm earned $0.81 EPS. The company’s revenue was up 24.0% compared to the same quarter last year. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.33 earnings per share for the current year.
Analyst Ratings Changes NOW has been the subject of a number of recent research reports. Raymond James Financial decreased their price objective on ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Bank of America started coverage on ServiceNow in a report on Monday, May 18th. They set a “buy” rating and a $130.00 price target for the company. Argus lowered their price target on ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a research report on Friday, April 24th. Jefferies Financial Group restated a “buy” rating and set a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday. Finally, Weiss Ratings downgraded shares of ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $143.39.
Read Our Latest Stock Analysis on ServiceNow
Insider Activity at ServiceNow In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 19,144 shares of company stock worth $1,730,097. Insiders own 0.34% of the company’s stock.
Key ServiceNow News Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: ServiceNow beat Q2 earnings and revenue estimates, showing that demand for its workflow and AI products remains healthy. Positive Sentiment: The company raised its annual subscription revenue forecast again, which signals management confidence in continued growth. Positive Sentiment: AI-related momentum was a major highlight, with AI contract value topping $1 billion and multiple reports saying customers are adopting ServiceNow’s AI platform more aggressively. Positive Sentiment: Several analysts turned more constructive after earnings, including price-target increases and reaffirmed buy/overweight ratings. Neutral Sentiment: New partnerships and customer wins, including Experian, Leidos, TeamViewer, and Exclusive Networks, support the long-term platform story but are less likely to move the stock immediately. Article Title Negative Sentiment: Some investors remain worried that new AI tools from OpenAI and others could pressure legacy enterprise software, which has created volatility even after the earnings beat. ServiceNow Company Profile (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
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