Track market-moving stories before they get noisy

Key Takeaways BRO is targeting $8B in revenues after reaching $5.9B in the most recent year.Brown & Brown has completed 725 acquisitions since 1993, expanding its market reach and offerings.BRO grew Q1 Retail revenues 33.4% and Specialty Distribution revenues 40% year over year. Shares of Brown & Brown, Inc. (BRO - Free Report) have lost 43.7% in the past year compared with the industry’s 39.2% decline.

Flat organic growth, margin pressure, valuation compression and earnings estimate cuts are pushing the stock down. Despite these factors, the company's strong client retention, new business generation and acquisitions remain intact, and recovery depends on improving earnings growth, stronger insurance market conditions and margin stabilization.

Shares of other insurers like Aon plc. (AON - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) and Willis Towers Watson Public Limited Company (WTW - Free Report) have lost 5.5%, 31.3% and 12.4%, respectively, over the past year.

1 Year Price Performance - BRO, AON, AJG, WTW, Industry & S&P 500
Image Source: Zacks Investment Research

BRO’s ValuationShares of Brown & Brown are trading at a discount compared with the Zacks Brokerage Insurance industry. Its forward price-to-earnings multiple of 12.86X is lower than the industry average of 14.91X. It currently carries a Value Score of B.

Image Source: Zacks Investment Research

BRO’s Growth ProjectionThe Zacks Consensus Estimate for Brown & Brown’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.9%. The consensus estimate for revenues is pegged at $7.13 billion, implying a year-over-year improvement of 20.9%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 8.3% and 5.2%, respectively, from the corresponding 2026 estimates.

Earnings have grown 19.2% in the past five years, better than the industry average of 13.9%.

The Zacks Consensus Estimate for 2026 and 2027 earnings moved 0.6% and 1.8% south, respectively, in the last 60 days.

BRO’s Average Target Price Suggests UpsideBased on short-term price targets offered by 17 analysts, the Zacks average price target is $74.18 per share. The average suggests a potential 25.5% upside from the last closing price.

Image Source: Zacks Investment Research

Factors That Benefit BROCommissions and fees, the main component of the top line, benefit from increasing new business, strong retention and ongoing rate rises across most lines of coverage. These factors support recurring revenues and earnings visibility. The company met its intermediate annual revenue goal of $4 billion in 2024 and now targets $8 billion in revenues. Last year, its revenues reached $5.9 billion.

Brown & Brown’s strategic buyouts help it capitalize on growing market opportunities, strengthen its products and service portfolio, expand global reach and accelerate growth rate. From 1993 through the first quarter of 2026, Brown & Brown acquired 725 insurance intermediary operations.

The company operates across Retail and Specialty Distribution businesses, providing broad exposure to multiple insurance markets. Revenues from the retail segment have contributed a lion’s share to the company’s total revenues. In the first quarter of 2026, Retail revenues increased 33.4% year over year, while Specialty Distribution revenues rose 40%. The balanced contribution from multiple business lines reduces reliance on any single product line.

The strength of its operating model and diversity of businesses ensures strong cash conversion. It generated operating cash flow of $262 million in the first quarter, up 23% from a year ago. The company effectively deploys cash into acquisitions, capital expenditure and wealth distribution for shareholders via dividend increases.  The company has an annualized dividend growth rate of 13.2% over the past five years. The current dividend yield is 1.1%.

HeadwindsBrown & Brown has been experiencing rising expenses due to higher employee compensation and benefits, amortization, changes in estimated acquisition earn-out payables, as well as other operating expenses and interest expense. These factors are creating pressure on margins despite revenue growth.

BRO's expanding international operations expose it to foreign currency, regulatory and economic risks across global markets. Additionally, rising debt levels from acquisition-driven growth are increasing interest expenses. Its total debt to EBITDA of 2.9% is above the industry average of 2.4%.

Profitability metrics also lag industry levels. Brown & Brown’s return on equity is 12.9%, well below the industry average of 18.8%.

ConclusionNew business, strong retention, strategic buyouts, diversified brokerage platform and impressive dividend history position the company well for growth. Robust capital position and cheap valuation are other positives. However, international expansion risks, unfavorable ROE, rising expenses, and debt levels are the headwinds.

Therefore, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Posted by Defense World Staff on Mar 30th, 2026

Regal Rexnord Corporation (NYSE:RRX – Get Free Report) has earned a consensus rating of “Moderate Buy” from the ten research firms that are presently covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $228.50.

Several equities research analysts have recently weighed in on the company. Citigroup increased their price objective on Regal Rexnord from $180.00 to $230.00 and gave the company a “buy” rating in a report on Monday, February 9th. Zacks Research raised shares of Regal Rexnord from a “strong sell” rating to a “hold” rating in a report on Tuesday, December 30th. Barclays upped their price target on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an “overweight” rating in a research report on Monday, March 23rd. JPMorgan Chase & Co. raised their price objective on shares of Regal Rexnord from $190.00 to $230.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th. Finally, Jefferies Financial Group lowered shares of Regal Rexnord from a “buy” rating to a “hold” rating and dropped their price objective for the company from $170.00 to $160.00 in a research note on Wednesday, December 10th.

View Our Latest Stock Analysis on RRX

Regal Rexnord Stock Down 0.0% RRX opened at $183.35 on Friday. Regal Rexnord has a one year low of $90.56 and a one year high of $229.30. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.10 and a current ratio of 2.15. The stock has a market capitalization of $12.21 billion, a P/E ratio of 43.66, a price-to-earnings-growth ratio of 1.70 and a beta of 1.05. The business’s 50-day simple moving average is $193.26 and its 200-day simple moving average is $161.20.

Regal Rexnord (NYSE:RRX – Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $2.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.47 by $0.04. The firm had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The business’s revenue was up 4.3% on a year-over-year basis. During the same period in the prior year, the firm earned $2.34 EPS. Analysts anticipate that Regal Rexnord will post 9.95 EPS for the current year.

Regal Rexnord Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 14th. Investors of record on Tuesday, March 31st will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 0.8%. The ex-dividend date is Tuesday, March 31st. Regal Rexnord’s payout ratio is 33.33%.

Insider Buying and Selling In other Regal Rexnord news, Director Curtis W. Stoelting sold 4,500 shares of the stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $180.00, for a total transaction of $810,000.00. Following the completion of the sale, the director directly owned 15,617 shares of the company’s stock, valued at approximately $2,811,060. This trade represents a 22.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Cheryl Lewis sold 2,262 shares of Regal Rexnord stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $215.73, for a total value of $487,981.26. Following the completion of the transaction, the executive vice president owned 13,219 shares in the company, valued at $2,851,734.87. This trade represents a 14.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 53,451 shares of company stock valued at $11,386,689 in the last quarter. 0.63% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Regal Rexnord A number of hedge funds and other institutional investors have recently bought and sold shares of RRX. Covestor Ltd increased its stake in Regal Rexnord by 81.6% in the 4th quarter. Covestor Ltd now owns 178 shares of the company’s stock valued at $25,000 after buying an additional 80 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of Regal Rexnord by 135.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock worth $25,000 after acquiring an additional 127 shares during the period. Aster Capital Management DIFC Ltd purchased a new stake in shares of Regal Rexnord in the third quarter valued at about $27,000. Garner Asset Management Corp purchased a new stake in shares of Regal Rexnord in the fourth quarter valued at about $27,000. Finally, IFP Advisors Inc increased its stake in shares of Regal Rexnord by 34.0% during the fourth quarter. IFP Advisors Inc now owns 193 shares of the company’s stock worth $27,000 after acquiring an additional 49 shares during the period. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

About Regal Rexnord (Get Free Report)

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.

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The biggest names in energy and technology are all in the same room this week—and the conversation isn't about oil prices. It's about electricity. And that distinction matters.

Often dubbed the "Super Bowl of energy," CERAWeek is the world’s premier annual energy conference, where the big players convene in Houston, Texas, to discuss global energy markets, geopolitics, and technology.

This year, speakers from Amazon Web Services NASDAQ: AMZN, Alphabet's Google NASDAQ: GOOGL, Microsoft NASDAQ: MSFT, NVIDIA NASDAQ: NVDA, and Meta NASDAQ: META are sharing the stage with legacy energy producers, and the dominant theme is power demand.

Get stock market alerts:

Altimetry Research’s Joel Litman and Rob Spivey are focused on one major theme emerging from the conference: the United States is not energy-independent when it comes to electricity, and the AI-driven buildout could take five to ten years. That creates a specific, investable opportunity—and a few traps worth avoiding.

U.S. Electricity Demand Is Outpacing the Grid For roughly 15 years, electricity usage in the United States barely moved, even as GDP grew. But that changed around 2022.

Even before the latest geopolitical concerns in the Middle East, power demand was already rising. Reindustrialization, data center proliferation, and the rise of AI computing have sent power consumption sharply higher. Data center electricity demand alone could account for as much as 10% of total U.S. usage, and the infrastructure to support it simply doesn't exist yet.

That's the tension at CERAWeek this year. Energy producers and AI hyperscalers are negotiating who builds what—and who pays for it. Residential electricity rates still exceed commercial rates on a per-kilowatt-hour basis, a dynamic that could become politically explosive heading into November's elections. Companies that need power may increasingly be forced to source it at market prices or off-grid entirely, which only accelerates total demand.

3 Stocks Positioned to Profit From the AI Power Buildout 1. MasTec: The Builder Behind the Buildout MasTec Today

$362.24 +3.74 (+1.04%)

As of 12:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$159.77▼

$441.43P/E Ratio63.49

Price Target$459.28

MasTec NYSE: MTZ is the engineering, procurement, and construction firm that physically builds power plants, lays fiber-optic cable, and constructs data centers. The company's client list reads like a who's who of the energy-AI convergence: Kinder Morgan NYSE: KMI, Duke Energy NYSE: DUK, AT&T NYSE: T, IBM NYSE: IBM, and Microsoft.

What makes the case compelling is what standard financial reporting misses.

According to Altimetry, MasTec is roughly twice as profitable as reported metrics suggest. The company carries an approximately $19 billion backlog—a figure that gives it years of revenue visibility.

Management guided for $17 billion in 2026 revenue, representing 19% growth, and adjusted earnings per share (EPS) of $8.40. The record $18.96 billion 18-month backlog gives that guidance unusual credibility.

The market, however, is pricing MasTec for a normal economic cycle. It's not pricing a multi-year infrastructure supercycle. That disconnect is the opportunity.

Altimetry's research on "doubles that double again" found that in the middle of a bull market, stocks that have already doubled carry a roughly 50% chance of doubling again, and uniform accounting filters push that probability closer to 60%.

2. Regal Rexnord: Solving the Power Problem Inside the Data Center Regal Rexnord Today

RRX

Regal Rexnord

$211.79 +0.55 (+0.26%)

As of 12:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$127.96▼

$236.35Dividend Yield0.66%

P/E Ratio49.26

Price Target$232.25

Regal Rexnord NYSE: RRX tells a different story. This legacy industrial company—historically known for motors, machine parts, and HVAC components—has moved up the value chain into data center power management, and the market hasn't fully caught on.

The key product is the E-Pod, a modular, plug-and-play power management system roughly the size of a shipping container. It steps down and manages the electrical load coming into a data center so high-value chips from NVIDIA and Micron NASDAQ: MU don't fry.

In Q4 2025, the company secured orders worth approximately $735 million for multiple E-Pod projects. The broader data center business could reach $1 billion in revenue over the next two years, up from roughly $120 million today.

Regal Rexnord's return on assets has climbed by about a third over the past few years as it shifted toward higher-margin solutions. But reported metrics don't capture the transformation. Recent stock volatility—driven partly by geopolitical jitters and recurring "AI spending is over" scares—may actually offer a more attractive entry point.

The distinction Altimetry draws is worth repeating: the current AI investment cycle is nothing like the dot-com bubble. In 1998 and 1999, capital flowed to companies with no revenue, let alone profits. Today, the spending is coming from massively cash-rich hyperscalers with demand they can't yet fulfill. Microsoft's Satya Nadella has said publicly that Azure would generate more revenue if the company simply had more power and more data centers.

3. EQT: The Natural Gas Bridge That Funds the Future EQT Today

$51.98 +0.78 (+1.52%)

As of 12:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$48.47▼

$68.24Dividend Yield1.27%

P/E Ratio9.86

Price Target$68.83

EQT NYSE: EQT is the largest natural gas exploration and production company in the United States, and Altimetry calls it the essential near-term cog in the AI power story.

The logic is straightforward: while nuclear and renewables generate long-term excitement, natural gas is the only viable baseload power source that can be deployed at scale in the next five years.

Solar doesn't run at night. Wind can't operate when it's too calm or too windy. Battery storage extends capacity for two to four hours, far short of overnight demand. If the United States needs to rapidly build new power plants for data centers, those plants will run on natural gas.

EQT holds nine years of reserves without drilling a single new well and 12 years of proven reserves if it ramps up. The company's vertical integration makes it one of the country's lowest-cost gas producers at $2 per MMBtu.

Management guided for 2026 adjusted EBITDA of about $6.5 billion and free cash flow of $3.5 billion. The company is also completely unhedged for 2026—a deliberate bet by management that natural gas prices will move higher.

The dual catalyst here is domestic power demand and LNG exports. Geopolitical disruption in the Middle East is reinforcing the case for U.S. energy exports, giving EQT upside on both sides of the ledger. Stock volatility reflects short-term geopolitical skittishness, not a fundamental problem. It could even represent a buying opportunity.

2 AI Power Plays That Look More Like Hype Than Opportunity 1. CoreWeave: The WeWork of AI? CoreWeave Today

$104.43 +8.69 (+9.07%)

As of 12:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$63.80▼

$187.00Price Target$131.52

Now for the names to avoid. The first is CoreWeave NASDAQ: CRWV, and the comparison Altimetry draws is blunt: CoreWeave is the WeWork of the AI boom.

The pitch sounds compelling on the surface: CoreWeave builds and operates data centers for AI workloads. But Altimetry argues the company is functionally a data center REIT with a slicker brand, and claims it has never generated a dime of actual profitability. The company posted a negative 22.74% profit margin and a negative 50.27% return on equity.

Yet the market is pricing CoreWeave for return on assets north of 25%, roughly five times what comparable data center operators typically achieve. The company carries a $29.8 billion debt load with a 0.46 current ratio and 16.5% short interest. Even as revenue surges, capital expenditures are expected to more than double in 2026, constraining any path to near-term profitability.

Altimery believes that while metrics may try to suggest profitability, the underlying economics tell a different story. CoreWeave's economic profit has been negative since it went public, and Altimetry doesn't see a reason for that to change soon.

2. Oklo: A Cool Idea Still Years Away From Reality Oklo Today

$57.55 -0.31 (-0.54%)

As of 12:45 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$44.88▼

$193.84Price Target$82.78

Altimetry's critique isn't about nuclear energy broadly—it's about Oklo NYSE: OKLO specifically.

The small modular reactor company captured investor imagination with a partnership with Meta and backing from Sam Altman. But it is behind at least two competitors (NuScale NYSE: SMR and BWXT NYSE: BWXT on the technology curve. And, more importantly, the business model is misunderstood. Oklo doesn't plan to sell reactors. It plans to build them and lease the power, making it fundamentally a leasing business with cost-of-capital-level returns.

The math doesn't work at current pricing. New-build nuclear power costs roughly $200 to $250 per megawatt hour. Hyperscalers are currently contracting power in the mid-hundreds of dollars per megawatt hour.

The market, meanwhile, is pricing Oklo for $400 to $500 million in earnings when the company is currently losing $100 million per year. Oklo has around $1.2 billion in cash and marketable securities, which provides runway, but a cash cushion doesn't change the economics of a leasing model that may never reach the return profile investors are pricing in.

If the SMR thesis does play out, Altimetry suggests watching BWXT. The company already manufactures key components for the U.S. Navy's nuclear reactors and has decades of proven technology, is generating revenue today, and carries less speculative premium.

Where Power Meets Profit The through-line across all five names is the same: the AI power buildout is real, it's massive, and it's early.

But not every company riding the narrative deserves investor capital. The companies with proven demand, deep backlogs, and underappreciated profitability—MasTec, Regal Rexnord, and EQT—look positioned to capture years of growth. The ones trading on hype and venture capital packaging—CoreWeave and Oklo—could leave investors holding expensive lessons.

The real signal from CERAWeek isn't about any single stock. It's that the convergence of energy and AI is now the defining investment theme of this cycle, and the companies that physically build, power, and fuel that infrastructure may be the smartest way to play it.

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MILWAUKEE, April 22, 2026 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX) announced today that its Board of Directors has appointed Aamir Paul to serve as Chief Executive Officer (CEO) commencing no later than July 1, 2026, upon the conclusion of his responsibilities with his current employer, Schneider Electric SE. The Board has also determined that Mr.

On April 30, 2026, Regal Rexnord Corp (RRX) shares rose 5.5% to a current price of $215.03. The stock has experienced significant movement over the past year, w

, /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX)

1Q Highlights

Daily Orders Up 8.5% Versus PY Backlog Up 6.7% Sequentially At The Enterprise Level And Up In All Segments AMC Orders Up Over 34% Versus PY On Broad-Based Growth, Up 28% Excluding Data Center IPS Orders Accelerated In Short Cycle Distribution And OEM, Net Of Headwinds In Long Cycle Projects Sales Of $1,479.1 Million, Up 4.3% Versus PY, Up 1.6% On An Organic Basis GAAP Net Income Of $64.3 Million Versus PY Of $57.5 Million, Up $6.8 Million Or 11.8% Versus PY Adjusted EBITDA Of $304.4 Million Versus PY Of $309.5 Million Diluted EPS Of $0.96, Up 11.6% Versus PY; Adjusted Diluted EPS Of $2.17, Up 0.9% Versus PY Re-Affirming 2026 Adjusted Earnings Per Share Guidance Announced Aamir Paul As Next Chief Executive Officer CEO Louis Pinkham commented, "Our growth outlook continued to strengthen during the first quarter, with enterprise daily orders up 8.5% versus the prior year. Our AMC segment led the way, with orders up over 34%, aided by growth across all markets, but particularly in aerospace & defense, discrete automation, data center and medical. Our IPS business also saw order acceleration in its distribution business and high single digit growth in its short cycle OEM business, consistent with improving industrial macro metrics, such as the ISM. PES orders were down as expected, but less severely, as residential HVAC markets show tentative signs of normalizing. We also saw continued strength in commercial HVAC, primarily driven by data center demand. While some of the enterprise order strength is tied to improving industrial and automation markets, our growth investments are also paying off, and our cross-sell initiatives continue to contribute nicely."

"Beyond orders, the first quarter evidences solid execution by our teams. Organic sales growth was positive and margins were resilient in the face of headwinds from mix and tariffs. We also continued to make strategic growth investments where we see attractive returns. Adjusted EPS for the quarter was up versus prior year and ahead of our guidance."

"Looking forward, we are optimistic that our strong momentum on orders will continue to result in accelerating organic sales growth. We also have line of sight to higher margins and free cash flow as the year unfolds, aided by stronger volumes, improving mix, achieving margin neutrality on tariffs, and synergies."

Mr. Pinkham concluded, "Reflecting on my tenure as Regal Rexnord's CEO, I am thankful for the opportunity to have led this great organization, and extremely proud of all that our team has accomplished transforming Regal into a higher performing enterprise. I am also extremely excited about Regal Rexnord's future under the leadership of our newly appointed CEO, Aamir Paul. By leveraging his strong commercial orientation, and a long track record driving growth through innovation and a focus on customer needs, I believe Aamir can help our team capitalize on all that we have built to accelerate profitable growth and create tremendous value for all of our key stakeholders."

Segment Performance

Segment results for the first quarter of 2026 versus the same period of the prior year are summarized below:

Automation & Motion Control net sales were $457.1 million, an increase of 15.3%, or an increase of 12.1% on an organic basis. Growth was broad-based, but with particular strength in the data center and discrete automation markets, as well as signs of recovery in the food & beverage market. Adjusted EBITDA margin was 18.2% of net sales. Industrial Powertrain Solutions net sales were $648.2 million, an increase of 5.8%, or an increase of 2.8% on an organic basis. Growth was broad-based, but with particular strength in the general industrial market. Adjusted EBITDA margin was 25.0% of net sales. Power Efficiency Solutions net sales were $373.8 million, a decrease of 8.6%, or a decrease of 10.3% on an organic basis due to expected weakness in the residential HVAC market, which was partially offset by growth in the commercial HVAC markets in North America and Asia Pacific. Adjusted EBITDA margin was 15.8% of net sales. Conference Call

Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Thursday, May 7, 2026. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord's Investor website: https://investors.regalrexnord.com. To listen by phone or to ask the presenters a question, dial 1-877-264-6786 (U.S. callers) or 1-412-317-5177 (international callers) and enter 1646001# when prompted. Participants on the call will include Louis Pinkham, CEO, Rob Rehard, EVP & CFO, and Rakesh Sachdev, Non-Executive Chairman of the Board.

A webcast replay will be available at the link above, and a telephone replay will be available at 1-855-669-9658 (U.S. callers) or 1-412-317-0088 (international callers), using a replay access code of 7993994#. Both replays will be accessible for three months after the earnings call.

Supplemental Materials

Supplemental materials and additional information for the quarter ended March 31, 2026 will be accessible before the conference call on May 7, 2026 on Regal Rexnord's Investor website: https://investors.regalrexnord.com. The Company intends to disseminate important information about the Company to its investors on the Investors section of its website: https://investors.regalrexnord.com. Investors are advised to look at Regal Rexnord's website for future important information about the Company. The content of the Company's website is not incorporated by reference into this document or any other report or document Regal Rexnord files with the Securities and Exchange Commission.

About Regal Rexnord

Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.

The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace & defense, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.

Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.

Forward Looking Statements

All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "would," "could," "should," and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 ("Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra"); the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; dependence on key suppliers and the potential effects of supply disruptions; fluctuations in commodity prices and raw material costs; any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects; unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs; the Company's ability to retain key executives and employees and risks associated with the transition and integration of a successor CEO; uncertainties regarding our ability to execute restructuring plans within expected costs and timing or at all; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; actions taken by competitors and our ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence; dependence on significant customers and distributors; risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values; risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts and rapidly evolving sustainability regulations; changes to and uncertainty in trade policy, including tariffs on imports into the US from Canada, Mexico, China, and other countries, and retaliatory tariffs and import/export restrictions, including Chinese export restrictions on certain rare earth minerals, or other trade restrictions imposed by the US or other governments; risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts; issues and costs arising from the integration of acquired companies and businesses; prolonged declines in one or more markets, including disruptions caused by labor disputes or other labor activities, natural disasters, terrorism, acts of war, international conflicts, pandemics and political and government actions; risks associated with excess or obsolete inventory charges including related write-offs or write-downs; economic changes in global markets, such as reduced demand for products, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, import/export regulations, immigration, customs, border actions and the like, and other external factors that the Company cannot control; product liability, asbestos and other litigation, or claims by end users, government agencies or others that products or customers' applications failed to perform as anticipated; the Company's ability to identify and execute on future mergers and acquisitions ("M&A") opportunities or other strategic transactions; the impact of any such M&A transactions on the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions; unanticipated costs or expenses that may be incurred related to product warranty issues; infringement of intellectual property by third parties, challenges to intellectual property, and claims of infringement on third party technologies; risks related to foreign currency fluctuations or changes in global commodity prices or interest rates; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; costs and unanticipated liabilities arising from rapidly evolving laws and regulations, including data privacy laws, labor and employment laws, environmental laws and regulations, and tax laws and regulations; risks associated with stock price volatility; and other factors that can be found in our filings with the SEC, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 

Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)

We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered "non-GAAP" financial measures. This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in accordance with GAAP.

In this release, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), free cash flow, adjusted income before taxes, adjusted provision for income taxes, and adjusted effective tax rate. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed are primarily used to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. This release also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of this non-GAAP financial measure would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided.

In addition to these non-GAAP measures, we use the term "organic sales growth" to refer to the increase in our sales between periods that is attributable to organic sales. "Organic sales" refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any sales from business divested/to be exited recorded prior to the first anniversary of the exit and excluding the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period's organic sales using the currency exchange rates that were in effect during the prior year periods.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(Dollars in Millions, Except per Share Data)

Three Months Ended

Mar 31,
2026

Mar 31,
2025

Net Sales

$       1,479.1

$       1,418.1

Cost of Sales

929.2

890.5

Gross Profit

549.9

527.6

Operating Expenses

397.2

367.9

Income from Operations

152.7

159.7

Interest Expense

80.5

90.2

Interest Income

(4.6)

(4.2)

Other Expense, Net

0.3

0.7

Income before Taxes

76.5

73.0

Provision for Income Taxes

12.2

15.5

Net Income

64.3

57.5

Less: Net Income Attributable to Noncontrolling Interests

—

0.2

Net Income Attributable to Regal Rexnord Corporation

$           64.3

$           57.3

Earnings Per Share Attributable to Regal Rexnord Corporation:

   Basic

$           0.97

$           0.86

   Assuming Dilution

$           0.96

$           0.86

Cash Dividends Declared Per Share

$           0.35

$           0.35

Weighted Average Number of Shares Outstanding:

   Basic

66.5

66.3

   Assuming Dilution

66.8

66.5

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(Dollars in Millions)

Mar 31, 2026

Dec 31, 2025

ASSETS

Current Assets:

Cash and Cash Equivalents

$            401.0

$            521.7

Trade Receivables, Less Allowances of $13.3 Million and $10.5 Million as of March 31, 2026 and
December 31, 2025, Respectively

577.3

524.2

Inventories

1,378.4

1,321.7

Prepaid Expenses and Other Current Assets

393.1

344.7

Total Current Assets

2,749.8

2,712.3

Net Property, Plant and Equipment

884.0

911.8

Operating Lease Assets

146.7

145.2

Goodwill

6,577.2

6,611.3

Intangible Assets, Net of Amortization

3,309.7

3,418.4

Deferred Income Tax Benefits

35.9

36.2

Other Noncurrent Assets

77.5

85.8

Total Assets

$         13,780.8

$         13,921.0

LIABILITIES AND EQUITY

Current Liabilities:

Accounts Payable

$            627.5

$            607.3

Dividends Payable

23.3

23.2

Accrued Compensation and Benefits

183.5

205.5

Accrued Interest

84.0

84.0

Other Accrued Expenses

282.6

281.7

Current Operating Lease Liabilities

40.1

38.5

Current Maturities of Long-Term Debt

23.8

24.1

Total Current Liabilities

1,264.8

1,264.3

Long-Term Debt

4,682.6

4,764.6

Deferred Income Taxes

732.3

752.6

Pension and Other Post Retirement Benefits

102.7

106.0

Noncurrent Operating Lease Liabilities

115.4

114.0

Other Noncurrent Liabilities

68.1

66.2

Equity:

Regal Rexnord Corporation Shareholders' Equity:

Common Stock, $0.01 par value, 150.0 Million Shares Authorized, 66.6 Million and 66.4 Million
Shares Issued and Outstanding as of March 31, 2026 and December 31, 2025, Respectively

0.7

0.7

Additional Paid-In Capital

4,685.7

4,688.5

Retained Earnings

2,271.3

2,230.3

Accumulated Other Comprehensive Loss

(152.1)

(75.4)

Total Regal Rexnord Corporation Shareholders' Equity

6,805.6

6,844.1

Noncontrolling Interests

9.3

9.2

Total Equity

6,814.9

6,853.3

Total Liabilities and Equity

$         13,780.8

$         13,921.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

Unaudited

(Dollars in Millions)

Three Months Ended

Mar 31, 2026

Mar 31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income

$              64.3

$             57.5

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of
Acquisitions and Divestitures):

Depreciation

37.3

40.1

Amortization

86.6

85.4

Noncash Lease Expense

11.7

10.9

Share-Based Compensation Expense

8.0

9.5

Financing Fee Expense

2.4

3.3

Loss (Gain) on Sale of Assets

0.5

(6.0)

Benefit from Deferred Income Taxes

(14.2)

(18.5)

Other Non-Cash Changes

0.7

0.7

Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures

Receivables

(58.4)

(0.6)

Inventories

(63.4)

(41.8)

Accounts Payable

23.0

41.6

Other Assets and Liabilities

(83.6)

(79.8)

Net Cash Provided by Operating Activities

14.9

102.3

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to Property, Plant and Equipment

(17.4)

(16.8)

Proceeds Received from Sales of Property, Plant and Equipment

—

10.3

Proceeds Received from Sale of Businesses, Net of Cash Transferred

—

3.0

Net Cash Used in Investing Activities

(17.4)

(3.5)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings Under Revolving Credit Facility

558.4

411.5

Repayments Under Revolving Credit Facility

(390.6)

(389.7)

Proceeds from Long-Term Borrowings

850.0

—

Repayments of Long-Term Borrowings

(1,101.3)

(185.9)

Dividends Paid to Shareholders

(23.3)

(23.2)

Shares Surrendered for Taxes

(15.0)

(5.6)

Proceeds from the Exercise of Stock Options

6.4

0.4

Net Cash Used in Financing Activities

(115.4)

(192.5)

EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS

(2.8)

5.5

Net Decrease in Cash and Cash Equivalents

(120.7)

(88.2)

Cash and Cash Equivalents at Beginning of Period

521.7

393.5

Cash and Cash Equivalents at End of Period

$             401.0

$            305.3

ADJUSTED DILUTED EARNINGS PER SHARE

Unaudited

Three Months Ended

Mar 31,
2026

Mar 31,
2025

GAAP Diluted Earnings Per Share

$              0.96

$             0.86

Intangible Amortization

0.98

0.97

Restructuring and Related Costs (a)

0.12

0.18

Share-Based Compensation Expense

0.04

0.13

Transaction and Integration Related Costs (b)

0.06

0.08

Loss (Gain) on Sale of Assets

0.01

(0.07)

Adjusted Diluted Earnings Per Share

$              2.17

$             2.15

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs.

2026 ADJUSTED ANNUAL GUIDANCE

Unaudited

Minimum

Maximum

GAAP Diluted Earnings Per Share

$                  5.18

$                  5.98

Intangible Amortization

3.91

3.91

Share-Based Compensation Expense

0.46

0.46

Restructuring and Related Costs (a)

0.41

0.41

Transaction and Integration Related Costs (b)

0.23

0.23

Loss on Sale of Assets

0.01

0.01

Adjusted Diluted Earnings Per Share

$                10.20

$                11.00

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

Primarily relates to integration costs associated with the Altra Transaction.

ORGANIC SALES GROWTH

Unaudited

(Dollars in Millions)

Three Months Ended

March 31, 2026

Automation &
Motion Control

Industrial
Powertrain
Solutions

Power Efficiency
Solutions

Total Regal
Rexnord

Net Sales Three Months Ended Mar 31, 2026

$          457.1

$          648.2

$          373.8

$        1,479.1

Impact from Foreign Currency Exchange Rates

(12.8)

(19.2)

(6.9)

(38.9)

Organic Sales Three Months Ended Mar 31, 2026

$          444.3

$          629.0

$          366.9

$        1,440.2

Net Sales Three Months Ended Mar 31, 2025

$          396.3

$          612.7

$          409.1

$        1,418.1

Net Sales from Businesses Divested

—

(0.6)

—

(0.6)

Adjusted Net Sales Three Months Ended Mar 31, 2025

$          396.3

$          612.1

$          409.1

$        1,417.5

Three Months Ended Mar 31, 2026 Net Sales Growth %

15.3 %

5.8 %

(8.6) %

4.3 %

Three Months Ended Mar 31, 2026 Foreign Currency Impact %

3.2 %

3.1 %

1.7 %

2.7 %

Three Months Ended Mar 31, 2026 Divestitures %

— %

(0.1) %

— %

— %

Three Months Ended Mar 31, 2026 Organic Sales Growth %

12.1 %

2.8 %

(10.3) %

1.6 %

ADJUSTED EBITDA

Unaudited

(Dollars in Millions)

Three Months Ended

Automation &
Motion Control

Industrial
Powertrain
Solutions

Power Efficiency
Solutions

Total Regal
Rexnord

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

GAAP Income from Operations

$   31.6

$   35.1

$   79.2

$   81.7

$   41.9

$   42.9

$ 152.7

$ 159.7

Restructuring and Related Costs (a)

1.2

1.2

5.7

12.9

3.4

1.3

10.3

15.4

Transaction and Integration Related Costs (b)

1.1

1.4

3.2

4.1

0.7

1.4

5.0

6.9

Loss on Sale of Accounts Receivable (c)

1.0

—

1.5

—

1.3

—

3.8

—

Accounts Receivable Securitization Transaction Costs

—

—

0.1

—

—

—

0.1

—

Operating Lease Asset Step Up

—

—

0.2

0.2

—

—

0.2

0.2

(Gain) Loss on Sale of Assets

—

—

—

(6.0)

0.5

—

0.5

(6.0)

Adjusted Income from Operations

$   34.9

$   37.7

$   89.9

$   92.9

$   47.8

$    45.6

$ 172.6

$  176.2

Amortization

$   34.7

$   33.9

$   51.3

$   49.9

$    0.6

$    1.6

$ 86.6

$   85.4

Depreciation

11.5

11.6

16.9

18.6

8.9

8.9

37.3

39.1

Amortization of Internal Use Software

—

—

0.2

—

—

—

0.2

—

Share-Based Compensation Expense

2.5

3.4

3.7

3.8

1.8

2.3

8.0

9.5

Other Income (Expense), Net

(0.2)

(0.1)

0.1

(0.3)

(0.2)

(0.3)

(0.3)

(0.7)

Adjusted EBITDA

$   83.4

$   86.5

$ 162.1

$ 164.9

$   58.9

$   58.1

$ 304.4

$ 309.5

GAAP Operating Margin %

6.9 %

8.9 %

12.2 %

13.3 %

11.2 %

10.5 %

10.3 %

11.3 %

Adjusted Operating Margin %

7.6 %

9.5 %

13.9 %

15.2 %

12.8 %

11.1 %

11.7 %

12.4 %

Adjusted EBITDA Margin %

18.2 %

21.8 %

25.0 %

26.9 %

15.8 %

14.2 %

20.6 %

21.8 %

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs.

(c)

Represents charges associated with the Securitization Facility.

ADJUSTED GROSS MARGIN

Unaudited

(Dollars in Millions)

Three Months Ended

Automation &
Motion Control

Industrial
Powertrain
Solutions

Power Efficiency
Solutions

Total Regal
Rexnord

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

Mar 31, 2026

Mar 31, 2025

Gross Margin

$ 161.8

$ 158.1

$ 274.7

$ 257.5

$ 113.4

$ 112.0

$ 549.9

$ 527.6

Restructuring and Related Costs (a)

0.2

0.6

4.1

8.8

3.3

0.6

7.6

10.0

Operating Lease Asset Step Up

—

—

0.2

0.2

—

—

0.2

0.2

Adjusted Gross Margin

$  162.0

$  158.7

$  279.0

$  266.5

$  116.7

$  112.6

$ 557.7

$ 537.8

Gross Margin %

35.4 %

39.9 %

42.4 %

42.0 %

30.3 %

27.4 %

37.2 %

37.2 %

Adjusted Gross Margin %

35.4 %

40.0 %

43.0 %

43.5 %

31.2 %

27.5 %

37.7 %

37.9 %

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

NET INCOME TO ADJUSTED EBITDA

Unaudited

(Dollars in Millions)

Three Months Ended

Mar 31,
2026

Mar 31,
2025

Net Income

$         64.3

$         57.5

Plus: Income Taxes

12.2

15.5

Plus: Interest Expense

80.5

90.2

Less: Interest Income

(4.6)

(4.2)

Plus: Depreciation

37.3

39.1

Plus: Amortization

86.6

85.4

EBITDA

$        276.3

$        283.5

Plus: Restructuring and Related Costs (a)

10.3

15.4

Plus: Share-Based Compensation Expense

8.0

9.5

Plus: Transaction and Integration Related Costs (b)

5.0

6.9

Plus: Loss on Sale of Accounts Receivable (c)

3.8

—

Plus: Accounts Receivable Securitization Transaction Costs

0.1

—

Plus: Operating Lease Asset Step Up

0.2

0.2

Plus: Amortization of Internal Use Software

0.2

—

Plus: Loss (Gain) on Sale of Assets

0.5

(6.0)

Adjusted EBITDA

$        304.4

$        309.5

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs.

(c)

Represents charges associated with the Securitization Facility.

DEBT TO EBITDA

Unaudited

(Dollars in Millions)

Last Twelve Months

Mar 31, 2026

Net Income

$                         287.7

Plus: Income Taxes

68.4

Plus: Interest Expense

339.5

Less: Interest Income

(24.1)

Plus: Depreciation

151.6

Plus: Amortization

347.3

EBITDA

$                       1,170.4

Plus: Restructuring and Related Costs (a)

41.8

Plus: Share-Based Compensation Expense

35.9

Plus: Transaction and Integration Related Costs (b)

23.0

Plus: Loss on Sale of Accounts Receivable (c)

13.3

Plus: Accounts Receivable Securitization Transaction Costs

1.2

Plus: CEO Transition Costs

7.0

Plus: Operating Lease Asset Step Up

0.8

Plus: Amortization of Internal Use Software

0.2

Plus: Loss on Sale of Businesses

4.5

Plus: Loss on Sale of Assets

3.9

Adjusted EBITDA (d)

$                       1,302.0

Current Maturities of Long-Term Debt

23.8

Long-Term Debt

4,682.6

Total Gross Debt

$                       4,706.4

Cash and Cash Equivalents

(401.0)

Net Debt

$                       4,305.4

Gross Debt/Adjusted EBITDA

3.61

Net Debt/Adjusted EBITDA (d)

3.31

Interest Coverage Ratio (d)(e)

4.13

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

Primarily relates to integration costs associated with the Altra Transaction.

(c)

Represents charges associated with the Securitization Facility.

(d)

Synergies expected to be realized in the future are included in the calculation of EBITDA that serves as the basis for financial covenant compliance for certain of the Company's debt.  The impact of the synergies the Company expects to realize within 18 months is as follows:

Adjusted EBITDA

$                      1,302.0

Synergies to be Realized Within 18 Months

38.0

Adjusted EBITDA (including synergies)

$                      1,340.0

Net Debt/Adjusted EBITDA (including synergies)

3.21

Interest Expense

$                        339.5

Interest Income

(24.1)

Net Interest Expense

$                        315.4

Interest Coverage Ratio (including synergies)(1)

4.25

(1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense

(e)

Computed as Adjusted EBITDA/Net Interest Expense

FREE CASH FLOW

Unaudited

(Dollars in Millions)

Three Months Ended

Mar 31,
2026

Mar 31,
2025

Net Cash Provided by Operating Activities

$         14.9

$        102.3

Additions to Property Plant and Equipment

(17.4)

(16.8)

Free Cash Flow

$         (2.5)

$         85.5

ADJUSTED EFFECTIVE TAX RATE

Unaudited

(Dollars in Millions)

Three Months Ended

Mar 31,
2026

Mar 31,
2025

Income before Taxes

$       76.5

$       73.0

Provision for Income Taxes

12.2

15.5

Effective Tax Rate

15.9 %

21.2 %

Income before Taxes

$       76.5

$       73.0

Intangible Amortization

86.6

85.4

Restructuring and Related Costs (a)

10.3

15.4

Share-Based Compensation Expense

8.0

9.5

Transaction and Integration Related Costs (b)

5.0

6.9

Accounts Receivable Securitization Transaction Costs

0.1

—

Operating Lease Asset Step Up

0.2

0.2

Loss (Gain) on Sale of Assets

0.5

(6.0)

Adjusted Income before Taxes

$      187.2

$      184.4

Provision for Income Taxes

$       12.2

$       15.5

Tax Effect of Intangible Amortization

21.2

20.9

Tax Effect of Restructuring and Related Costs

2.5

3.6

Tax Effect of Share-Based Compensation Expense

5.3

1.1

Tax Effect of Transaction and Integration Related Costs

1.2

1.6

Tax Effect of Loss (Gain) on Sale of Assets

0.1

(1.4)

Discrete Tax Items

—

0.1

Adjusted Provision for Income Taxes

$       42.5

$       41.4

Adjusted Effective Tax Rate

22.7 %

22.5 %

(a)

Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.

(b)

For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs.

SOURCE Regal Rexnord Corporation

Regal Rexnord (RRX - Free Report) reported $1.48 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 4.3%. EPS of $2.17 for the same period compares to $2.15 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.43 billion, representing a surprise of +3.37%. The company delivered an EPS surprise of +3.09%, with the consensus EPS estimate being $2.11.

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 Regal Rexnord performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenues- Automation & Motion Control (AMC): $457.1 million versus the three-analyst average estimate of $418.07 million. The reported number represents a year-over-year change of +15.3%.Revenues- Industrial Powertrain Solutions (IPS): $648.2 million compared to the $637.09 million average estimate based on three analysts. The reported number represents a change of +5.8% year over year.Revenues- Power Efficiency Solutions (PES): $373.8 million versus the three-analyst average estimate of $374.91 million. The reported number represents a year-over-year change of -8.6%.Adjusted EBITDA- Industrial Powertrain Solutions (IPS): $162.1 million versus $162.95 million estimated by three analysts on average.Adjusted EBITDA- Automation & Motion Control (AMC): $83.4 million versus $87.46 million estimated by three analysts on average.Adjusted EBITDA- Power Efficiency Solutions (PES): $58.9 million versus $48.99 million estimated by three analysts on average.View all Key Company Metrics for Regal Rexnord here>>>

Shares of Regal Rexnord have returned +19.8% over the past month versus the Zacks S&P 500 composite's +10.3% 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.

Regal Rexnord Corporation (RRX) Q1 2026 Earnings Call Transcript

Regal Rexnord Corporation (RRX) Presents at Oppenheimer 21st Annual Industrial Growth Virtual Conference Transcript

On May 26, 2026, Regal Rexnord Corp (RRX) shares rose 4.5% today, reaching a current price of $209.85. Over the past 52 weeks, the stock has traded between $127

DexCom is now rated a 'Buy' as improved fundamentals and a 15% lower stock price present a more attractive entry. Q1/26 results showed 15% revenue growth, and 90.9% operating income growth and raised 2026 guidance for both revenue and margins. Key growth drivers include international expansion, increased U.S. coverage for type 2 diabetics, and a $1B share buyback in 2026.

SAN DIEGO--(BUSINESS WIRE)--DexCom, Inc. (Nasdaq: DXCM), the global leader in glucose biosensing, announced today through ongoing quality and accounting reviews it recently identified certain lots of Dexcom G7 sensors originally designated as scrap and intended for destruction were stolen during the destruction process, then sold by third parties.

Scrapping limited amounts of sensors that do not meet Dexcom standards is a routine part of the company’s quality control process. Sensors identified as scrap are sent to a third-party vendor for destruction and recycling.

At this time, Dexcom has identified two lots of Dexcom G7 sensors (1725204004 and 1725069002) that were stolen, sold and used by some customers.

“Nothing matters more to Dexcom than the safety of our users and maintaining the trust of the diabetes community,” said Jake Leach, president and CEO of Dexcom. “We are treating this matter with the utmost seriousness and are working closely with regulators and other authorities to ensure user safety, determine exactly how this product was stolen and hold the perpetrators fully accountable for their crimes.”

Dexcom traced sales of this stolen product back to Pharmsource, LLC, who is not an authorized Dexcom distributor but supplies some independent pharmacies and DME distributors in the United States. Pharmacies that purchased product from Pharmsource should take extra care to review their inventory.

Dexcom is notifying customers directly across numerous communication channels. This issue primarily impacts the US, therefore communication to US customers will precede communication to OUS customers.

Users with sensors from affected Dexcom G7 lots (1725204004 and 1725069002) should not use those sensors and can call Dexcom Customer Support in the US at 1-844-478-1600 to request replacements. More information on how to determine if sensors are from an affected lot and what action to take is available at www.dexcom.com/theft-check. Dexcom is working to update this website with resources for users outside the US and will notify those users as soon as it is updated.

Dexcom's authorized distributors provide Dexcom G7 sensors to the largest pharmacy retailers and medical distributors in the United States and around the world. Pharmacy retailers and medical distributors who receive Dexcom product from authorized Dexcom distributors are not impacted. Educational samples are also not impacted. The authorized US Dexcom distributor list can be found at www.dexcom.com/dexcom-suppliers.

Potential harm associated with stolen product

Lot 1725204004: Dexcom G7 sensors that are not properly sterilized have an increased risk of skin infection.

Lot 1725069002: Dexcom G7 sensors from a lot with an elevated internal testing failure rate have an increased risk of having no sensor readings available.

There have been no reported severe adverse events associated with the stolen product.

About DexCom, Inc.

Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.

Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com

More News From DexCom, Inc.

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Health technology startup Signos announced a $20 million funding round on Wednesday, growing its foothold in the GLP-1-fueled weight loss market and expanding its partnership with medical device giant Dexcom.

GV, formerly known as Google Ventures, Dexcom and Blue Cross Blue Shield of Alabama invested in this latest round, which includes a new distribution deal to put Signos' subscription plans on Dexcom's direct-to-consumer site.

"Dexcom's investment really reflected the shared belief in the future of glucose biosensing beyond diabetes management," Signos CEO Sharam Fouladgar-Mercer told CNBC. "Their biosensor provides glucose data. We translate that into actual guidance."

Signos makes an artificial intelligence-powered glucose monitoring system designed to help with healthy weight management, the first of its kind to be cleared by the Food and Drug Administration. It was approved in 2025.

It uses Dexcom's off-the-shelf continuous glucose monitor to measure how a user's real-time lifestyle choices can affect their health, like meal choices, sleep and stress levels. From there, the platform gives personalized recommendations to build healthier habits.

"Nobody wants to have a PhD in statistics to figure out their own body, and so we're really helping translate these glucose insights into actual recommendations, and then the pattern recognition's designed to support healthier habits and sustainable weight management," Fouladgar-Mercer told CNBC.

The startup declined to comment on its valuation following the round.

Read more CNBC tech newsBezos opens up about AI startup Prometheus after $12 billion raise: 'We're not being secretive'DoorDash lets customers use photos, prompts to order food and book reservations in latest AI pushAs OpenAI leans into enterprise business, Apple and Google set sights on the massesPalantir's Karp says businesses are 'unhappy' with the frontier AI labsThe fresh funding will go toward expanding its predictive AI features, like meal scoring, where a user's data is used to warn them about whether a specific food could spike their glucose levels before they eat it.

Fouladgar-Mercer said the real opportunity with AI is translating biology into "practical guidance people can actually use."

"So you can take a photo of the food and the AI will detect the entity and figure out the macros and all of that, and also the activities, but really it's how do you take that and determine how your body responds in real time to give you that feedback to help drive behavior change," he said.

The service is meant either for those who want to complement their GLP-1 drug treatments or as a standalone weight management system, Fouladgar-Mercer said.

Signos' new partnership with Dexcom could bring the startup greater visibility in the booming weight loss market, as demand for pricey GLP-1 drugs like Novo Nordisk's Wegovy and Eli Lilly's Zepbound continues to skyrocket.

Nearly 74% of Americans are obese or overweight, according to government data. Estimates from JP Morgan predict that roughly 25 million Americans will be on a GLP-1 by 2030, more than double the number of patients in 2025.

While Fouladgar-Mercer said the company doesn't share metrics around revenue or customer count, he said both revenue and user base grew tenfold over the past six months. He added that "tens of thousands" have participated in clinical studies.

"Just tracking outputs — like steps or heart rate — are fine, but if we can't track the metabolic input and the response, then we can't help people as effectively as we want," Fouladgar-Mercer said.

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SAN DIEGO--(BUSINESS WIRE)--Dexcom, Inc., the global leader in glucose biosensing, today released its inaugural Customer Advisory Council Report, detailing candid feedback from users, caregivers, healthcare professionals and community leaders, along with clear, actionable company commitments to further elevate product performance and user experience. Building on its position as the manufacturer of the most accurate CGM systems1, Dexcom continues to listen, innovate and act on customer insights to strengthen its technology and reinforce its leadership as the premier choice for people with diabetes, globally.

Formed in January 2026, the Dexcom Customer Advisory Council brings together a diverse group of stakeholders – people with Type 1 and Type 2 diabetes, caregivers, diabetes educators, healthcare professionals and community advocates from around the world – to create a direct and ongoing dialogue with the people who depend on Dexcom products every day.

"Dexcom has pioneered and set the global standard for continuous glucose monitoring, and we are deeply committed to continually raising that standard to meet the evolving needs of our community," said Jake Leach, president and chief executive officer of Dexcom. "This council represents our belief that the best path forward is through listening – truly hearing what's working and what isn't. We will continue to be transparent, responsive and relentless in our pursuit of earning and maintaining the trust of our users every day."

Through independent moderation by Vital Findings, council members reinforced that Dexcom remains a life-changing, essential technology that has improved millions of lives. They also identified opportunities to improve product reliability, customer service and communication, prompting six concrete commitments outlined in the report:

Delivering the best possible product by continuously improving the performance of every Dexcom sensor. Making sure product replacements are easier, replacing any sensor confirmed as a product failure without limit and offering self-service ways to request replacements. Raising the bar for customer service, making the experience more human, informed and responsive. Making the Customer Advisory Council a permanent part of how Dexcom does business. Communicating more clearly and transparently, including product updates, company news and issues (good or bad). Creating a new content series that demystifies the science and technology behind CGM. The council will continue to meet throughout 2026, with regular public updates on progress against commitments. The full Customer Advisory Council Community Commitment Report, including in-depth discussions on accuracy, connectivity, adhesives and more, is available at dexcom.com/about-dexcom.

Toward the end of 2026, Dexcom will announce the format and approach for the continuation of the Customer Advisory Council in 2027 and beyond.

About Dexcom

Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.

Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.

1 Dexcom, Data on File, 2025

SAN DIEGO--(BUSINESS WIRE)--DexCom, Inc. (NASDAQ:DXCM) will present new clinical findings, product advancements and strategic business initiatives reinforcing its commitment to improving care for people with all types of diabetes and ushering in a new era of early stage CGM intervention and preventative care at the American Diabetes Association’s Scientific Sessions in New Orleans, June 5-8, 2026.

“Dexcom has built a legacy of innovation within the diabetes space and as we look to the future, expanding access and developing new CGM solutions to better support early-stage intervention and preventative care are top priorities,” said Jake Leach, president and CEO at Dexcom. “Through clinical research like the CONNECT study, upcoming launch of reimagined Stelo app and the acquisition of Nutrisense, Dexcom is building an even more accessible and connected ecosystem designed to help as many people as possible better understand their glucose health and manage it with real time insights, personalized support and coaching.”

CONNECT study will demonstrate Dexcom CGM benefits for adults with Type 2 diabetes not using insulin

Co-author of the CONNECT study, Thomas W. Martens, MD, from the International Diabetes Center, will present findings from the randomized controlled trial showcasing the clinical benefits of Dexcom CGM use by adults with Type 2 diabetes not on insulin therapy. This RCT study has the potential to have considerable impact to future standards of care for the Type 2 non-insulin using patient population1. The presentation will take place on Saturday, June 6 at 1:45 p.m. CDT in the Ernest N. Morial Convention Center, La Nouvelle Orleans C (Level 2).

Reimagined Stelo app receives FDA clearance and will define a new era of glucose tracking for all people not on insulin seeking better health

On June 5, select Stelo users will be offered the opportunity for early access to a completely reimagined app experience, which received FDA clearance last month. Stelo will now provide all people not on insulin seeking better health a smarter, more intuitive way to understand their metabolism. The redesigned app will launch with a suite of new features including pattern recognition, proactive AI coaching and personalized daily and weekly summaries. These new features make it even easier for users to track and understand their body over time, revealing connections between glucose patterns and how they feel. The full rollout of the new Stelo app experience is expected later this summer.

Nutrisense acquisition will enhance nutrition capabilities within the Dexcom ecosystem

Dexcom has entered into an agreement to acquire Nutrisense, with the transaction anticipated to close in the coming weeks, subject to customary closing conditions and regulatory approvals. With this acquisition, Dexcom will further expand its ability to support users beyond glucose data alone by incorporating access to registered dietitians, personalized nutrition guidance and behavior-change support. The acquisition strengthens Dexcom’s ability to provide personal nutrition education and guidance linking food choices to glucose responses.

Together, these announcements at the ADA Scientific Sessions reflect Dexcom’s continued investment in evidence-based, technology-enabled solutions designed to expand access to CGM, support earlier intervention and offer more personalized diabetes and metabolic health management.

For a detailed overview of Dexcom’s presence at ADA this year, visit: dexcom.events/2026-ADA.

About Dexcom

Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.

Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.

Category: IR

1. Oser T, et al. CGM for Adults with Type 2 Diabetes Not on Insulin: The CONNECT Randomized Controlled Trial. Presented at ADA 2026.

Diabetes management is evolving rapidly as the industry innovates to treat the more than 40 million Americans with type 1 or type 2 diabetes. Deciding between two leaders in monitoring and treatment, DexCom (DXCM 0.45%) and Insulet (PODD +0.51%), requires a close look at their growth and valuation.

DexCom focuses on continuous glucose monitoring, while Insulet specializes in wearable insulin pumps. Both companies are leaders in their respective niches, but they address different aspects of the same chronic condition. This comparison evaluates their financials and market positions to determine which stock offers a more compelling opportunity today.

The case for DexComDexCom focuses on continuous glucose monitoring (CGM) systems that allow people with diabetes to track glucose levels in real time without frequent fingersticks. The company operates within the broader healthcare sector and sells its products in approximately 52 countries. Certain distribution agreements accounted for 10% or more of total revenue in 2025, and such customer concentration adds a layer of risk to the business.

In FY 2025, revenue reached nearly $4.7 billion, up 15.6% from the previous year. The company reported net income of approximately $836.3 million for 2025, up $168.8 million from the prior year. This resulted in a net margin of  17.9%, which measures how much profit a company kept from every dollar of total sales.

The company has a debt-to-equity ratio of roughly 0.5x, which compares total debt to shareholders’ equity. Free cash flow for the year was nearly $1.1 billion, calculated by subtracting capital expenditures from cash generated by operations. That’s nearly enough to pay off its $1.38 billion in total debt if management wanted to.

The case for InsuletInsulet specializes in the Omnipod system, a tubeless insulin pump that simplifies insulin delivery for people with diabetes via a wearable pod. The company serves more than 600,000 global customers and has successfully expanded its presence into approximately 25 countries. It relies on three major distributors, each accounting for 10% or more of revenue, and customer concentration like this adds a layer thiof risk to the business.

During FY 2025, the company generated revenue of just over $2.7 billion, representing a 30.9% increase. Net income for the fiscal year was approximately $354.4 million, despite the competitive nature of the medical technology market. This produced a net margin of close to 10.4% for the period, reflecting its current operational scale.

Insulet maintains a relatively conservative debt-to-equity ratio of approximately 0.8x. As of its December 2025 balance sheet, the current ratio is roughly 2.8x, a measure of the company's ability to cover its short-term debts with its short-term assets. Free cash flow for FY 2025 reached close to $377.7 million, providing the company with capital for further product development.

Risk profile comparisonDexCom faces intense competition from large medical technology firms like Abbott Laboratories and Medtronic. The company is also navigating a March 2025 FDA warning letter concerning manufacturing and quality management system non-conformities at certain facilities. Additionally, the rising popularity of GLP-1 drugs could potentially reduce the overall demand for glucose monitoring sensors.

Insulet depends heavily on its single Omnipod product platform, making it vulnerable to shifts in consumer preferences or technical failures. The company relies on agreements with DexCom and Abbott Laboratories to integrate sensors into its pods, meaning the loss of these partnerships would impair product functionality. It also competes directly with Medtronic and Tandem Diabetes Care in the insulin delivery market.

Valuation comparisonInsulet appears to be the more attractively valued option for investors seeking a lower P/S ratio and a lower Forward P/E relative to future earnings estimates.

MetricDexComInsuletSector BenchmarkForward P/E28.4x22.0x27.1xP/S ratio6.1x3.6xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

While there are general fears that the rise of GLP-1 treatments for diabetes will erode the market for both DexCom and Insulet’s products, the fact of the matter is that millions of people continue to live with diabetes. Many of those are looking for better ways to monitor and treat themselves.

DexCom holds the leadership position for glucose monitoring systems in the United States. It remains a growth market, with management expecting double-digit growth in 2026. The company periodically introduces updated versions of its continuous glucose monitoring device, attracting new users and prompting upgrades from a sizable portion of its existing customer base.

Similarly, Insulet is a leader in automated insulin delivery systems. The Omnipod is a small, wearable device that users can cover with sleeves if they want.

For 2026, Insulet gets the nod for its combination of relative value compared to DexCom, with lower price-to-earnings and price-to-sales ratios, along with the fact that Insulet’s market has plenty of upside.

Insulet management estimates that only 40% to 45% of patients with type 1 diabetes use automated treatment devices. The market for type 2 diabetes treatment has even more potential: just 5% of those patients use an automated device, and the number of type 2 diabetes sufferers is about 30 times the amount of Type 1. Insulet’s current device, Omnipod 5, was only approved to treat Type 2 in 2024, meaning there is plenty of customer education to be done.

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Dexcom sponsored CONNECT randomized controlled trial expected to help establish new standard of care for CGM use by people with Type 2 diabetes not using insulin around the world.Showed use of Dexcom G7 led to clinically and statistically significant reduction in HbA1c and improvement in quality of glucose control, including time in range and level 1 and 2 hyperglycemia.1Demonstrated additional clinically significant improvement in A1C reduction across study participants using Dexcom G7 in combination with various diabetes medications, including metformin, GLP-1s and SGLT2s.1 SAN DIEGO--(BUSINESS WIRE)--DexCom, Inc. (NASDAQ:DXCM) announced today results from the CONNECT randomized controlled trial, demonstrating the use of Dexcom G7 leads to clinically and statistically significant reduction in A1C and improvement in glucose control among people with Type 2 diabetes not using insulin compared with a routine care control group using self-monitoring of blood glucose.1 Researchers presented these results today as an oral presentation at the 2026 Scientific Sessions of the American Diabetes Association in New Orleans.

“The CONNECT study released today is the first and only level A evidence demonstrating strong benefit of CGM for the Type 2 non-insulin using population,” said Roy Beck, MD, PhD, medical director of the JAEB Center for Health Research and senior author of the study. “Level A evidence, the highest level of evidence graded by the ADA, has historically driven meaningful changes in standards of care.”

CONNECT demonstrated clinically significant benefit for all adult Type 2 non-insulin using patients regardless of age, gender, ethnicity, baseline A1C, body mass index, education level, income and insurance coverage.1 The study also showed an additional clinically significant reduction in A1C when using Dexcom G7 with various combinations of current standards of care diabetes medication, including metformin, GLP-1s and SGLT2s.1

“We anticipate these results will help establish a new standard of care in the US and around the world,” said Jake Leach, president and CEO of Dexcom. “This is the third Dexcom sponsored randomized controlled trial that has, or will drive, Dexcom CGM to be the standard of care in people with Type 2 diabetes.”

All CONNECT study participants were provided diabetes education on diet and exercise at the start of the study, given a blood glucose meter, and pre-study glucose lowering medications were continued. Half of the study participants were put on Dexcom G7 and half of them used self-monitoring of blood glucose. The CONNECT study initially screened 440 participants across 22 primary care practices throughout the United States, of which 283 eligible participants were randomized to Dexcom G7 or routine care, with 265 completing the 26-week study and analyzed for the key outcomes reported at ADA.

Key outcomes from the study include1:

Average 1.6% A1C reduction with Dexcom G7 from baseline mean A1C of 8.8%. Participants using Dexcom G7 experienced on average a 1.6% A1C reduction at 26 weeks, representing a 0.9% greater A1C reduction compared to the control group. Participants using Dexcom G7 with an initial A1C >10% experienced on average a 3.1% A1C reduction, representing a 2.1% greater A1C reduction compared to the control group. 82% of participants had a clinically and statistically significant lower A1C of at least 0.5%. 68% of participants using Dexcom G7 reached <7.5% A1C at 26 weeks and 46% reached < 7.0% A1C at 26 weeks, demonstrating both clinically and statistically significant reductions. The use of Dexcom G7 alone lowered A1C more than any other medication treatment group with a 2.4% reduction in A1c compared to 1.5% in the control group. The use of Dexcom G7 had an additive effect in lowering A1C across all medication groups. In participants using GLP-1s, using Dexcom G7 resulted in a 1.4% reduction in A1C compared to 0.2% in the control group. In participants using SGLT2s, using Dexcom G7 resulted in a 1.8% reduction in A1C compared to 0.7% in the control group. Time in the glucose target range of 70 to 180 mg/dL was five hours per day greater for participants using Dexcom G7 compared to the control group. Those using Dexcom G7 observed overall a clinically significant time in range improvement as early as 1-4 weeks and sustained it through 26 weeks. On average at the end of 26 weeks, participants using Dexcom G7 achieved 62% time in range compared to 41% in the control group. Participants using Dexcom G7 reported a greater satisfaction with the use of Dexcom CGM compared to those using self-monitoring of blood glucose and reduced diabetes distress and disease burden. There was a median Dexcom G7 daily usage of 97% throughout the 26-week study. A six-month extension phase of the CONNECT randomized controlled trial is currently being conducted, which will provide further data on the sustainable benefits of Dexcom G7 up to 12 months.

The CONNECT study is of similar magnitude to previous randomized controlled trials, such as JDRF, DIAMOND and MOBILE, which demonstrated the benefits of CGM use among insulin using people with diabetes and helped define CGM as the standard of care for people with Type 1 and Type 2 diabetes on intensive and basal insulin.

Expanded CONNECT study outcomes will be presented in conjunction with the 2026 Scientific Sessions of the American Diabetes Association satellite symposium on Sunday, June 7 from 6:45-8:15 p.m. CDT at the Hilton New Orleans Riverside in the St. Charles Ballroom. Outcomes of the study will also be intermittently presented throughout the day, Sunday, June 7, in the Dexcom booth at the 2026 Scientific Sessions of the American Diabetes Association in the main exhibit hall of the Ernest N. Morial Convention Center in New Orleans.

For a detailed overview of Dexcom’s presence at ADA 2026 and more information on the CONNECT study, visit: dexcom.events/2026-ADA.

About Dexcom

Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.

Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.

Category: IR

More News From DexCom, Inc.

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[url="]DexCom, Inc.[/url] (NASDAQ: DXCM) announced today results from the CONNECT randomized controlled trial, demonstrating the use of Dexcom G7 leads to clini

Key Takeaways DexCom reported that CONNECT data showed G7 improved HbA1c and time in range in Type 2 diabetes.DexCom's trial delivered Level A evidence for CGM use in adults with Type 2 diabetes not on insulin.DexCom said that G7 users saw higher treatment satisfaction and about five extra hours in target range daily. DexCom, Inc. (DXCM - Free Report) recently announced positive results from its CONNECT randomized controlled trial, demonstrating that use of the Dexcom G7 continuous glucose monitoring (CGM) system significantly improved glycemic control among adults with Type 2 diabetes not using insulin. The findings were presented at the 2026 Scientific Sessions of the American Diabetes Association.

The study showed that participants using Dexcom G7 achieved clinically and statistically significant reductions in HbA1c levels and improvements in timing range compared with those using routine blood glucose monitoring. Management believes the results could help expand CGM adoption and support a new standard of care for the large Type 2 non-insulin diabetes population.

Likely Trend of DXCM Stock Following the NewsShares of DXCM have traded flat since the announcement of the news. In the year-to-date period, shares of the company have gained 9.8% against the industry’s 15.8% decline. However, the S&P 500 has risen 8.1% during the same timeframe.

The CONNECT study strengthens DexCom’s long-term growth prospects by providing high-quality clinical evidence supporting the use of CGM in people with Type 2 diabetes who do not use insulin — one of the largest and least penetrated segments of the diabetes market.

The positive results could support future updates to treatment guidelines, improve payer reimbursement decisions and encourage broader physician adoption of Dexcom G7. Expanded access and utilization within this sizable patient population could significantly increase DexCom’s addressable market and drive sustained revenue growth over the long term.

DXCM currently has a market capitalization of $28.11 billion.

Image Source: Zacks Investment Research

More on the NewsThe CONNECT study is the first randomized controlled trial to provide Level A evidence — the highest evidence classification recognized by the American Diabetes Association — supporting continuous glucose monitoring (CGM) use in adults with Type 2 diabetes who do not use insulin. The trial enrolled 283 eligible participants across 22 U.S. primary care practices, with 265 completing the 26-week study. Participants were randomized to either Dexcom G7 or routine self-monitoring of blood glucose, while continuing their existing diabetes medications and receiving standardized diet and exercise education.

Results showed that participants using Dexcom G7 achieved an average HbA1c reduction of 1.6% from a baseline level of 8.8%, representing a 0.9% greater reduction than the control group. The benefit was even more pronounced among participants with baseline HbA1c levels above 10%, who experienced an average 3.1% reduction.

Notably, 82% of Dexcom G7 users achieved at least a 0.5% reduction in HbA1c, while 68% reached HbA1c levels below 7.5% and 46% achieved levels below 7.0% by week 26. The study also demonstrated that Dexcom G7 delivered meaningful glycemic improvements both as a standalone intervention and when used alongside commonly prescribed diabetes therapies.

Beyond HbA1c improvements, Dexcom G7 users experienced substantial gains in overall glucose management. Time in the target glucose range of 70-180 mg/dL was approximately five hours per day higher than that of the control group, with benefits emerging within the first four weeks and persisting throughout the study period. Participants using Dexcom G7 also reported greater treatment satisfaction, lower diabetes-related distress and reduced disease burden.

Device engagement also remained exceptionally high, with median daily usage of 97% during the study. Dexcom is currently conducting a six-month extension phase to evaluate the durability of these benefits over a full 12-month period.

Industry Prospects Favoring the MarketGoing by the data provided by Grand View Research, the CGM devices market was valued at $15.47 billion in 2026 and is expected to witness a CAGR of 15.1% through 2033.

Factors like the growing cases of diabetes, the increasing adoption of CGM devices, growing clinical needs, technological innovation and shifting care models are boosting the market’s growth.

Other NewsAt the recent Investor Day event, DexCom unveiled its next-generation CGM, the Dexcom G8 system, which is expected to launch in late 2027 or early 2028. Features include step change improvement in glucose performance, a 50% smaller form factor than Dexcom G7 and advanced sensing capabilities.

DXCM’s Zacks Rank & Key PicksCurrently, DXCM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Drug wholesaler Pharmsource LLC said it was unaware the Dexcom glucose sensors ​it bought from licensed distributors had been ‌slated for destruction, after the device maker warned some units were stolen during disposal and ​resold.

Posted by Defense World Staff on Apr 26th, 2026

Arizona State Retirement System trimmed its holdings in Keurig Dr Pepper, Inc (NASDAQ:KDP – Free Report) by 6.0% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 354,203 shares of the company’s stock after selling 22,605 shares during the quarter. Arizona State Retirement System’s holdings in Keurig Dr Pepper were worth $9,921,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. AustralianSuper Pty Ltd bought a new position in Keurig Dr Pepper in the third quarter worth approximately $1,217,000. Bank of New York Mellon Corp grew its holdings in Keurig Dr Pepper by 2.9% in the third quarter. Bank of New York Mellon Corp now owns 7,927,144 shares of the company’s stock worth $202,221,000 after purchasing an additional 223,160 shares during the last quarter. Candriam S.C.A. grew its holdings in Keurig Dr Pepper by 50.9% in the third quarter. Candriam S.C.A. now owns 377,667 shares of the company’s stock worth $9,634,000 after purchasing an additional 127,389 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Keurig Dr Pepper by 69.9% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 105,015 shares of the company’s stock worth $2,660,000 after purchasing an additional 43,223 shares during the last quarter. Finally, Elo Mutual Pension Insurance Co grew its holdings in Keurig Dr Pepper by 83.7% in the third quarter. Elo Mutual Pension Insurance Co now owns 204,935 shares of the company’s stock worth $5,228,000 after purchasing an additional 93,374 shares during the last quarter. 93.99% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Keurig Dr Pepper Here are the key news stories impacting Keurig Dr Pepper this week:

Positive Sentiment: Q1 results topped estimates: KDP reported EPS above consensus and ~9–11% organic net sales growth led by U.S. refreshment/cold beverages, which underpins near‑term revenue momentum. PR: Q1 Results Positive Sentiment: Acquisition closed: KDP completed the JDE Peet’s deal (April 1), expanding coffee exposure and supporting long‑term revenue mix diversification. This strategic move is being viewed favorably despite near‑term integration work. MSN: Acquisition Closed Positive Sentiment: Wall Street lift: JPMorgan raised its price target to $33 and kept an Overweight rating, giving the stock additional analyst support. TickerReport: JPMorgan PT Raise Positive Sentiment: Institutional buying and option activity: Oakmark’s Bill Nygren disclosed an increased stake, and high call‑option volume suggests speculative bullish positioning that can amplify intraday moves. 247WallSt: Nygren Bought Options Activity Neutral Sentiment: Guidance reaffirmed: Management reaffirmed FY‑2026 outlook for constant‑currency net sales and adjusted EPS, which stabilizes expectations but offers limited upside surprise potential. PR: Guidance Reaffirmed Negative Sentiment: Profit pressure and execution risks: Margins were under pressure from higher costs; analysts and commentaries flag persistent inflation, integration/execution risk from JDE Peet’s and the planned company split, and at least one note saying FY sales guidance is below estimates. These are downside catalysts if costs or integration drag on results. SeekingAlpha: Guidance Below Estimates WSJ: Cost Pressure Wall Street Analyst Weigh In Several research firms have issued reports on KDP. UBS Group lifted their price target on shares of Keurig Dr Pepper from $32.00 to $34.00 and gave the stock a “buy” rating in a report on Friday. BNP Paribas Exane raised shares of Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price target on the stock in a report on Wednesday. Barclays cut their price target on shares of Keurig Dr Pepper from $32.00 to $28.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 14th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Keurig Dr Pepper in a report on Wednesday, January 28th. Finally, Wells Fargo & Company cut their price target on shares of Keurig Dr Pepper from $40.00 to $37.00 and set an “overweight” rating on the stock in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $31.43.

Get Our Latest Report on Keurig Dr Pepper

Keurig Dr Pepper Trading Up 2.4% NASDAQ KDP opened at $29.22 on Friday. The company has a market capitalization of $39.70 billion, a PE ratio of 21.64, a P/E/G ratio of 1.44 and a beta of 0.35. The company has a fifty day moving average of $27.51 and a 200 day moving average of $27.66. Keurig Dr Pepper, Inc has a 1 year low of $24.88 and a 1 year high of $35.94. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.31 and a quick ratio of 0.43.

Keurig Dr Pepper (NASDAQ:KDP – Get Free Report) last posted its earnings results on Thursday, April 23rd. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The company had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $7.23 billion. Keurig Dr Pepper had a net margin of 10.81% and a return on equity of 10.51%. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 earnings per share. Research analysts forecast that Keurig Dr Pepper, Inc will post 2.27 earnings per share for the current year.

Keurig Dr Pepper Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were given a dividend of $0.23 per share. The ex-dividend date was Friday, March 27th. This represents a $0.92 dividend on an annualized basis and a yield of 3.1%. Keurig Dr Pepper’s payout ratio is currently 60.13%.

Keurig Dr Pepper Company Profile (Free Report)

Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.

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On April 27, 2026, Keurig Dr Pepper Inc (KDP) shares fell 3.7% today, closing at $28.15. The stock's performance has been mixed over the past year, trading with

Key Takeaways Coca-Cola's non-carbonated drinks grew 5% y/y in Q1'26, outpacing sparkling soft drinks' 2%.Coca-Cola Zero Sugar jumped 13%, while tea rose 8% and sports drinks increased 3% in Q1'26.Juice, value-added dairy and plant-based beverages fell 1%, as higher costs and marketing spend loom. The Coca-Cola Company’s (KO - Free Report) evolving beverage portfolio underscores its transition from a traditional soda company to a broader “total beverage” player. While sparkling soft drinks still delivered 2% volume growth in first-quarter 2026, the company is increasingly leaning on faster-growing categories like water, sports drinks, coffee and tea, which collectively grew 5% in the period. This shift reflects changing consumer preferences toward healthier and more diverse beverage options.

The company’s performance highlights this balancing act. Coca-Cola Zero Sugar rose 13%, signaling strong demand for low or no-sugar alternatives within its core soda lineup. At the same time, growth in categories like tea (up 8%) and sports drinks (up 3%) indicates that non-carbonated beverages are becoming increasingly important contributors to overall volume expansion. However, not all segments are firing equally — juice, value-added dairy and plant-based beverages declined 1%, showing that diversification alone does not guarantee consistent growth.

Strategically, Coca-Cola is pairing portfolio diversification with targeted innovation and marketing. The company is leveraging premium packaging, digital engagement and localized campaigns to drive at-home and away-from-home consumption occasions, while also expanding offerings across price points. These efforts aim to attract consumers and sustain growth beyond its legacy soda base.

However, challenges remain. Higher input costs, increased marketing investments and uneven segment performance could pressure margins even as revenues rise. The key question is whether Coca-Cola’s expanding portfolio can consistently offset slowing growth in traditional categories. While early signs are encouraging, execution across diverse beverage segments will be critical to sustaining long-term growth.

KO’s Peers, PEP & KDP’s Beverage Portfolio in FocusCoca-Cola’s peers, PepsiCo Inc. (PEP - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) , are sharpening their beverage portfolios, pivoting beyond traditional sodas to capture growth in functional, low-sugar and premium drink categories.

PepsiCo is accelerating its shift beyond soda by investing in functional and on-trend beverages. Growth in hydration brands like Gatorade and Propel, alongside expansion into energy (Alani Nu) and prebiotic drinks, highlights this pivot. While Pepsi Zero Sugar supports core soda demand, innovation in health-focused and functional offerings is driving portfolio evolution. Still, volume pressures in parts of the beverage segment show the transition remains uneven.

Keurig Dr Pepper is advancing beyond soda by expanding into high-growth beverage segments like energy, sports hydration and better-for-you offerings. Strong momentum in brands such as GHOST, Bloom and Electrolit, alongside double-digit growth in zero-sugar CSDs, reflects this shift. While carbonated drinks remain core, innovation in functional and wellness-focused beverages is driving growth. Continued investment in emerging categories positions KDP to capture evolving consumer preferences.

Zacks Rundown for Coca-ColaKO shares have risen 4.7% in the past three months compared with the industry’s growth of 2.1%.

Image Source: Zacks Investment Research

From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 22.83X, higher than the industry’s 18.47X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 7.7% and 7.3%, respectively. Earnings estimates for 2026 have declined by a penny in the past 30 days. The EPS estimate for 2027 has edged down 0.6% in the past 30 days.

Image Source: Zacks Investment Research

New findings show younger generations are reshaping the category by choosing drinks that signal identity, emotion and intent

, /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today released its State of Beverages 2026 Trend Report, highlighting how beverage consumption is evolving in an era of more choice than ever. Released in celebration of National Beverage Day, the report shows Gen Alpha and Gen Z (Gen A/Z) leading a shift toward more expressive and experience-driven beverage choices. In fact, 58% say they choose beverages that reflect their identity.

Keurig Dr Pepper 2026 State of Beverages Trend Report

Keurig Dr Pepper 2026 State of Beverages Trend Report

Keurig Dr Pepper 2026 State of Beverages Trend Report Experience the full interactive Multichannel News Release here: https://www.multivu.com/keurig-dr-pepper/9395451-en-keurig-dr-pepper-2026-state-of-beverages-trend-report

"The beverage industry has always been dynamic, but Gen Z and Gen Alpha are driving a more profound shift in the role of beverages in everyday life," said Tim Cofer, CEO of Keurig Dr Pepper. "Increasingly, beverage choices signal identity, mood and values. As a result, occasions are becoming more social and intentionally curated, with drinks helping to define experiences, express individuality and bring people together in new ways."

The data also reveals that younger consumers are rotating across more flavors, functions and categories, reflecting greater exploration and higher expectations for beverages that meet different emotional and functional needs.

"Younger consumers don't think in terms of a single 'go to' drink anymore," said Katie Webb, Senior Vice President of Marketing Transformation, Innovation & Insights at Keurig Dr Pepper. "Younger generations are exploring more unique flavors, switching between beverages throughout the day and seeking options that can balance both function and feel-good."

The report highlights these five big trends in beverages:

Drinks as Self-Expression
For younger consumers, what's in their cup is becoming a statement of identity. Nearly six in ten Gen A/Z consumers say their drink reflects who they are (58% vs. 41% of Millennials+), and they're twice as likely to choose brands that signal something about them. That's fueling a surge in exploration, with strong interest from younger generations in unexpected flavors (58%), globally inspired options (57%) and limited-edition drops (56%). Drinks Are Setting the Mood
Beverages are no longer just part of the moment – they're helping define it. Gen A/Z consumers are 58% more likely to choose drinks based on mood or occasion. Their moments are more social and on-the-go, with Gen A/Z more likely than Millennials+ to enjoy beverages with food (65% vs. 57%), with others (59% vs. 50%) and away from home (42% vs. 30%). As beverages increasingly shape the moment, 63% of Gen A/Z want beverages that feel entertaining or inspiring (vs. 54% Millennials+). Go-To Drinks Are Out. Rotation Is In.
One go-drink no longer does it all. Gen A/Z have more emotional and functional needs per drink occasion (5 vs. 4 Millennials+) and rotate across more categories each week (6 vs. 5). Flavor is a major draw, with strong preferences from younger generations for fruity or juicy options (81%), sweet or indulgent choices (75%), citrus-forward flavors (72%) and bold profiles (64%). Even coffee is evolving, with nearly three-quarters of Gen A/Z coffee occasions including flavor – almost double that of older generations. A New Definition of Wellness
Among Gen A/Z, wellness is less about restriction and more about what drinks can deliver, with 71% looking for function-forward beverages. By contrast, Millennials+ are 48% more focused on reducing sugar and 51% more focused on managing intake. Younger generations are especially drawn to options that support mental focus and sustained energy and over-index across functional and performance categories, including being 60% more likely to consume enhanced water in the past day, 50% more likely to consume protein beverages weekly, 2x more likely to consume energy drinks weekly and 75% more likely to consume sports drinks weekly compared with Millennials+. Social Media Is the New Beverage Aisle
Digital channels are playing a larger role in trial and discovery. 63% of Gen A/Z say what they see friends, creators and social feeds drinking influences their choices (vs. 48% Millennials+). They're also nearly twice as likely to buy from brands that personalize recommendations (51% vs. 29% Millennials+), signaling rising expectations for curated, algorithm-driven choices. Cofer continued: "At KDP, we're not just tracking the evolution of the category, we're helping define it. That means designing brands that invite expression, fuel discovery, expand the idea of wellness beyond health claims and show up in moments that go far beyond the physical shelf."

Methodology
The KDP State of Beverages 2026 Trend Report was derived from a variety of quantitative and qualitative data sources, including national surveys from YouGov, Ipsos and Morning Consult, as well as KDP's own proprietary data. For the purposes of this report, generations are grouped as Gen A/Z (ages 13–29) and Millennials+ (ages 30+).

Explore the Full Report
Discover the full findings, including additional data, insights and detailed methodology, here: https://www.keurigdrpepper.com/state-of-beverages.

About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single-serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet's, L'OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.

Contacts:

Investors:

Keurig Dr Pepper
Investor Relations
T: 888-340-5287 / [email protected]

Media:

Keurig Dr Pepper
Katie Gilroy
T: 781-418-3345 / [email protected]

SOURCE Keurig Dr Pepper

Key Takeaways KDP's U.S. Refreshment Beverages sales rose 11.9% in Q1, led by CSDs, energy and sports hydration.U.S. Coffee sales fell 2.3%, but management expects profitability to improve in the second half of 2026.JDE Peet's deal and a planned split aim to sharpen focus and unlock about $400 million in synergies. Keurig Dr Pepper’s (KDP - Free Report) strong momentum in beverages is helping offset temporary weakness in its coffee business, positioning the company for steady growth in 2026. KDP’s U.S. Refreshment Beverages segment continued to deliver robust results in the first quarter, supported by strong demand for carbonated soft drinks, energy drinks and sports hydration products. Management also highlighted healthy category trends, market-share gains and strong consumer response to innovation launches like Canada Dry Fruit Splash and Dr Pepper Creamy Coconut.

KDP’s beverage segment delivered impressive numbers in first-quarter 2026. U.S. Refreshment Beverages’ net sales jumped 11.9%, while operating income increased 9.8%. Volume/mix contributed 7.2 percentage points to sales growth, reflecting strong consumer demand and distribution gains. The company’s energy portfolio, including GHOST and Bloom, continued gaining market share, while zero-sugar beverages posted double-digit growth. Overall company sales rose 8.1% year over year to $3.98 billion, beating expectations.

Meanwhile, the coffee business remains under pressure due to elevated green coffee costs, tariffs and temporary trade inventory adjustments. U.S. Coffee segment sales declined 2.3%, while operating income fell 21.3% in the quarter. However, management believes these pressures are temporary and expects profitability trends to improve meaningfully in the second half of 2026 as commodity costs moderate and innovation initiatives gain traction. KDP is also investing heavily in long-term coffee growth through launches like Keurig Coffee Collective and the upcoming Keurig Alta system.

Importantly, KDP’s transformation strategy could strengthen its long-term outlook. The recently completed JDE Peet’s acquisition expands the company’s global coffee presence and is expected to generate roughly $400 million in synergies over time. At the same time, KDP plans to separate its beverage and coffee operations into two independent companies, allowing sharper strategic focus. With strong beverage momentum, improving coffee visibility and multiple growth initiatives underway, KDP appears well-positioned to navigate near-term headwinds while building long-term shareholder value.

Keurig Dr Pepper’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have dropped 2% in the past three months compared with both the industry and the broader Consumer Staples sector, which fell 2.3% and 5.8%, respectively. However, the stock lagged the S&P 500, which rose 9.9% in the same time period.

KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research

Is KDP a Value Play Stock?Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 12.22X, lower than the industry average of 19.03X and the sector average of 16.81X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

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

Stocks to ConsiderWe have highlighted three better-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , B&G Foods (BGS - Free Report) and Krispy Kreme, Inc. (DNUT - Free Report) .

Vita Coco develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for COCO’s 2026 sales and EPS indicates growth of 21.4% and 47.9% from the previous year’s reported figures. Vita Coco delivered a trailing four-quarter average earnings surprise of 11.7%.

B&G Foods manufactures, sells and distributes a portfolio of shelf-stable and frozen foods and household products in the United States, Canada and Puerto Rico. It presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.

Krispy Kreme produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT has a Zacks Rank of 2.

The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing negative four-quarter earnings surprise of 6.3%, on average.