Track market-moving stories before they get noisy

@XDCNetwork closed August with the strongest month of on-chain activity in its history. The network processed 27.7 million transactions, a figure that represents a 50% increase over the prior six months, according to data shared by XDC Network and cited by Token Terminal analytics.

Validator Set Expands With Institutional Names The network's validator ecosystem grew roughly 26% over the quarter and now exceeds 320 active nodes. Three new institutional names joined during August. Hex Trust, a digital asset custodian active across APAC and the Middle East, joined as a Masternode Validator to verify transactions and contribute to network consensus. Clear Street, a regulated financial infrastructure firm headquartered in New York that serves more than 700 institutional clients and processes around 550 million shares in daily trading, also joined the validator set. Blockchain infrastructure provider LinkPool rounded out the August additions.

Clear Street CEO Robert Rutherford framed the move in capital markets terms, saying the firm wants to be "accountable for the next layer of capital markets" by helping to operate it. The broader validator roster already includes Deutsche Telekom, SBI Holdings, Animoca Brands, HashKey Cloud, and Republic, among others.

OrbitX Cards and the QAIX Alliance August also brought two product-level developments. The $XDC token went live on OrbitX corporate cards, extending its utility into everyday business payments. Separately, the network launched QAIX, a Quantum Computing and Artificial Intelligence Alliance built on XDC. The consortium brings together leaders across quantum computing, digital assets, financial infrastructure, and industrial robotics, with its main base in Manhattan and additional presence in Washington DC, Miami, and the San Francisco Bay Area.

The record transaction count sits against a broader push by XDC to position itself as a settlement layer for real-world assets, trade finance, and the emerging AI agent economy. The network is EVM-compatible and runs on XDPoS 2.0, a delegated proof-of-stake consensus mechanism, with support for up to 2,000 transactions per second.

Sources:
Finance Magnates: XDC Network Hits All-Time High in Monthly Transactions
Crypto Briefing: Clear Street Joins XDC Network as Institutional-Grade Validator
KuCoin: XDC Network Adds Hex Trust as Institutional Masternode Validator

They’re checking out.

Slumping sneaker seller Nike shuttered of a total of 11 of its U.S. stores in July alone, according to a report — including one location in a popular upscale shopping center in Northern California.

The closures impacted states across the country, including Texas, New Jersey, Illinois, North Carolina, Georgia, Florida, Missouri, Maryland, and Kentucky.

Nike closed 11 stores nationwide in the month of July alone, including a store in San Jose. Bloomberg via Getty Images In California, the brand permanently shuttered its location at the busy Santana Row mall in San Jose — a top shopping stop for minted tech workers.

Federal Realty, which operates the center, told the Silicon Valley Business Journal that the departure was “not a decision specific to this market or property” — and part of a broader shift, as the company tries to find the way forward.

Despite the closure, the Golden State still has the most Nike locations in the country with 39 stores.

The California Post reached out to Nike for comment on the closures.

The downsizing comes as Nike announced major global operations changes in April of this year — laying off approximately 1,400 employees working in global operations, mostly in the technology sector.

The company laid off 1,400 employees in April as part of a major change in global operations. Gado via Getty Images

Sales in Nike stores were down 7% in the fourth fiscal quarter of 2026, according to the company. Getty Images Download The California Post App, follow us on social, and subscribe to our newsletters California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
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The changes were designed to optimize the company’s supply chain footprint and modernize their use of technology to create “a more responsive, resilient, responsible, and efficient company,” according to Nike.

The iconic brand has been in a sales slump, with both footwear and equipment showing negative growth, revenue from Nike stores down 7%, and Converse revenue down 32%. Nike Direct revenue fell 9%, while Nike Digital was fell by 12%.

Niki President and CEO Elliot Hill acknowledged the company’s struggles in their June 2026 fourth-quarter earnings call.

“We know we’re not living up to our full potential,” said Hill.

Adobe on Thursday named Anil Chakravarthy as its next CEO, succeeding Shantanu Narayen, who announced he would step down earlier this year.

Chakravarthy, who most recently served as president of Adobe's customer experience orchestration and worldwide field operations, will take the helm Dec. 1, the company said. He will also join Adobe's board.

Narayen will become executive chair and "work closely" with Chakravarthy during the transition, Adobe said. Narayen said last March he would leave his role after joining the company in 1998 and serving as the head of Adobe for 18 years.

"Adobe's opportunity ahead is limitless with our track record in creating new market vategories and world-class products," Narayen said in a statement. "Anil is an experienced transformational leader who leads with values, integrity and a deep knowledge of our business."

Shares of Adobe fell about 2% in extended trading.

This is breaking news. Please refresh for updates.

Read more CNBC tech newsOpenAI begins rolling out Astra model after warning of its advanced cyber capabilitiesHugging Face approached Nvidia's Huang weeks ahead of $12.9B acquisition, CEO tells CNBCHow Meta will pull off massive changes to its social media appsAnthropic's distillation battle turns to the dark web as China concerns swell

Key Takeaways CAT and FieldAI are developing physical AI applications for inspections and workflow optimization.NVIDIA technologies will support digital twins to simulate and optimize complex physical environments.Komatsu is also advancing physical AI and autonomous equipment, intensifying competition. Caterpillar Inc. (CAT - Free Report) is accelerating its push into Artificial Intelligence-powered industrial operations through a collaboration with FieldAI. This highlights the growing importance of robotics, autonomy and digital technologies in reshaping construction, mining and manufacturing environments. The partnership aligns with Caterpillar's broader vision of creating safer, smarter and more productive job sites by combining its industry expertise and operational data with FieldAI's AI-enabled robotics platform.

A key focus of the collaboration is physical AI, which enables machines and robots to interpret real-world environments and convert real-time observations into actionable insights. Early applications include autonomous inspections, enhanced situational awareness, operational optimization and a virtual representation of job sites, facilities and equipment. These capabilities could help customers identify potential risks earlier, improve decision-making and optimize workflows while reducing dependence on manual processes.

The partnership also highlights the increasing role of NVIDIA (NVDA - Free Report) in the industrial AI ecosystem. Caterpillar and FieldAI plan to leverage NVIDIA accelerated computing and NVIDIA Omniverse technologies to develop high-fidelity digital twins using operational data. These technologies can enable the simulation of complex physical environments and workflows, allowing companies to test and optimize operations before deploying solutions in real-world settings. 

For Caterpillar, the FieldAI collaboration builds on decades of investment in autonomy. The company has already established a significant presence in autonomous mining and is now seeking to extend these capabilities into more complex and dynamic environments. CAT's vast installed base of connected equipment and operational data could provide an important advantage as AI models increasingly require real-world data to improve decision-making and machine performance.

Caterpillar's peer Komatsu (KMTUY - Free Report) is pursuing a similar technology-driven transformation, underscoring the intensifying competition in autonomous construction and mining equipment. 

Komatsu recently partnered with AIM Intelligent Machines to advance autonomous operation of bulldozers and hydraulic excavators, integrating physical AI with its Smart Construction platform. The initiative is designed to connect construction planning, equipment management and autonomous execution into a more seamless digital workflow. 

CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 90.9% in the past year, outperforming the industry's 75.3% growth.

Image Source: Zacks Investment Research

CAT is currently trading at a forward 12-month P/E of 25.60X, a premium compared with the industry’s 23.85X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 43.5%, while the 2027 estimate implies growth of around 20.2%. 

Image Source: Zacks Investment Research

Earnings estimates for both years have moved up over the past 60 days. 

Image Source: Zacks Investment Research

Caterpillar stock currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

If you were an Oracle (ORCL +5.69%) shareholder back in September 2025, you may have prematurely declared the company the winner of the AI boom. Since the stock skyrocketed to $345 last fall, the company's share price has shed roughly 55%. Amid volatility and the steep drop, is Oracle a buy again?

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Oracle's fundamentals are solid and, for the most part, continue to strengthen. The company's fiscal 2026 revenue grew 17% to over $67 billion. Net income rose 36% while Oracle's cloud infrastructure revenue jumped an impressive 75% year over year. The company's backlog totaled $638 billion at the end of the fiscal year, providing enormous future revenue visibility.

Oracle's valuation has fallen to a point that it almost looks oversold. The stock's forward P/E ratio has dropped to about 17, while the PEG ratio sits well below 1. For a rapidly growing tech company, this is more than reasonable; it's an opportunity.

Image source: The Motley Fool.

Of course, there are still many risks. Oracle is spending heavily on data centers, which has increased the company's debt and turned its free cash flow negative. These are also the reasons why the stock has plummeted in 2026.

If backlash around build-outs continues or demand weakens, Oracle would be left with a hefty bill. However, demand is still soaring, and the contracted backlog provides a level of safety that makes Oracle an enticing buy.

As of Sept. 2, Oracle is trading around $145 per share, $200 below its all-time high. The AI boom isn't slowing, and Oracle has been repriced. Potential Oracle investors have an attractive entry point here.

Catie Hogan has positions in Oracle. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.

Shore Capital has reiterated its sell recommendation on HSBC Holdings PLC (LSE:HSBA, NYSE:HSBC), warning the shares' punchy valuation more than reflects the bank's confident outlook.

Analyst Gary Greenwood kept his 1,335p target price, implying 13% downside from the current level.

The trading comment follows a roundtable hosted this morning by chief financial officer Pam Kaur, at which management said HSBC continues to trade well across most of its businesses.

Wealth client acquisition remains healthy and Trade Finance continues to gain share, with no evidence that recent Chinese regulatory measures are hitting customer behaviour or demand.

In the UK, management is prioritising relationship-led growth over pricing, pointing to HSBC's international banking franchise as a key differentiator.

Shore Capital said management's broader message was that the market may be underestimating the sustainability of earnings growth, citing a growing contribution from fee income and an enlarged $637 billion structural hedge that is reducing sensitivity to interest rates.

However, the broker cautioned that HSBC is currently benefiting from what management itself described as an optimal interest rate environment, with rates of 3% to 4% supportive of both economic activity and bank profitability.

Shore Capital said this backdrop remains unusually favourable and may prove difficult to replicate through the cycle.

The broker also flagged HSBC's capital allocation hierarchy, which places dividends first, growth second and buybacks third.

Prioritising a targeted 50% payout ratio ahead of buybacks suggests management does not view the shares as materially undervalued, Shore Capital said.

Returning around half of earnings to shareholders rather than reinvesting them also points to limited opportunities to deploy capital at returns materially above the cost of equity, the broker added.

On its estimates, HSBC shares trade on a 2026 forecast price to tangible net asset value of around 2.1 times for a return on tangible equity of about 18%, a valuation Shore Capital said assumes today's elevated profitability can be sustained over the long term.

While management is taking sensible steps to improve the durability of earnings, Shore Capital said it remains less convinced that cyclicality has disappeared from the business.

Even higher near-term returns would be required to compensate for periods of potentially lower future profitability, the broker said.

HSBC shares have risen 62% over the past 12 months, according to the note.

The bank reports third-quarter results on October 27.

Key Takeaways Stryker completed the first hip arthroscopy using SportSuite Vision on Apple Vision Pro at Duke Health.SYK's app is the first FDA-authorized surgical application for intraoperative use with Apple Vision Pro.Stryker's SportSuite Vision could support a more connected digital operating room in Sports Medicine. Stryker (SYK - Free Report) recently announced the successful completion of the first hip arthroscopy procedure using its SportSuite Vision application on Apple Vision Pro at Duke Health. The milestone follows the FDA's De Novo authorization for the application in July, making it the first surgical application approved for intraoperative use with Apple's mixed reality headset.

From an investor's perspective, the development reinforces Stryker's push to strengthen its digital surgery portfolio and expand innovation across its Sports Medicine business. Although the launch is unlikely to materially affect near-term revenue, it could enhance the company's competitive position, support wider adoption of its surgical ecosystem and create long-term growth opportunities as hospitals increasingly embrace advanced operating room technologies.

Likely Trend of SYK Stock Following the NewsFollowing the announcement, shares of SYK traded flat on Wednesday. Year to date, shares of the company have lost 11.1% compared with the industry’s 17% decline. However, the S&P 500 has risen 10.9% in the same timeframe.

In the long run, SportSuite Vision could strengthen Stryker's competitive moat by expanding its digital surgery ecosystem and making its Sports Medicine portfolio more integral to hospital workflows. As the first FDA-authorized intraoperative application for Apple Vision Pro, the platform gives Stryker an early-mover advantage in spatial computing, which could drive greater adoption at academic medical centers and high-volume orthopedic hospitals. Over time, this ecosystem approach may encourage repeat software and hardware purchases, deepen customer loyalty and support sustained growth across the company's surgical technologies business.

SYK currently has a market capitalization of $121.8 billion.

Image Source: Zacks Investment Research

Details of the NewsFollowing the FDA's De Novo authorization on July 17, SportSuite Vision became the first application cleared for intraoperative use with Apple Vision Pro, establishing a new regulatory benchmark for spatial computing in the operating room. The first live use of the technology took place during a hip arthroscopy at Duke Health, where orthopedic surgeon Chad Mather III performed the procedure, demonstrating the platform's transition from regulatory clearance to real-world clinical adoption at a nationally recognized academic medical center.

SportSuite Vision is designed for femoroacetabular impingement and labral repair hip arthroscopy procedures, combining arthroscopic video, HipCheck, HipMap FAI Analysis and CT imaging within a customizable spatial computing environment. The software allows surgeons to view these digital tools alongside the physical operating room through a video see-through augmented reality headset, while operating room staff continue using traditional monitors. According to Stryker, this integrated approach represents another step toward building a more connected digital operating room across its Sports Medicine franchise.

Benefits for SurgeonsThe new platform is designed to make hip arthroscopy more intuitive by keeping critical clinical information within the surgeon's line of sight throughout the procedure. Instead of repeatedly looking toward multiple monitors positioned around the operating room, surgeons can arrange key data based on their preferred workflow and access it within the sterile field. This setup can create a more comfortable and ergonomic operating environment, reduce unnecessary head movement and help streamline procedures by keeping essential information readily visible during surgery.

Industry Prospects Favoring the MarketGoing by the data provided by Research and Markets, the digital surgery technologies market size is expected to see exponential growth in the next few years. The market was valued at $1.48 billion in 2025 and is likely to reach beyond $5.36 billion by 2030 at a CAGR of 28.3%.

Growth in the forecast period can be attributed to the expansion of AI and big data in surgical workflows, growth of extended reality applications in surgery, increased adoption of software-based surgical navigation, development of advanced robotics control software and installation and maintenance services for digital surgical systems.

Other NewsRecently, SYK announced a definitive agreement to acquire ZuriMED, developer of the FiberLocker System, a commercialized technology designed for rotator cuff augmentation with increased biomechanical strength. The acquisition is aimed at strengthening Stryker’s shoulder portfolio and expanding its ability to support specialists across the continuum of shoulder care.

Per Stryker management, ZuriMED’s technology addresses an important unmet need for shoulder care.

SYK’s Zacks Rank & Key PicksCurrently, SYK has 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 The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways Coinbase launched regulated crypto, commodity and index futures in Canada for eligible traders.Coinbase says crypto-derivatives volume is about 4.4 times spot, expanding its addressable market.The Canada rollout could boost transaction revenues and serve as a blueprint for other global markets. Coinbase Global (COIN - Free Report) continues to advance its ambition of becoming the industry’s leading “everything exchange.” Its latest strategic initiative—the launch of regulated derivatives in Canada—expands the company’s addressable market, strengthens customer engagement and supports its evolution into a comprehensive financial platform.

Through Coinbase Financial Markets, Coinbase has become the first major crypto-native platform to offer direct access to native crypto futures in Canada. Eligible traders in Canada can access 23 perpetual and dated futures linked to assets such as Bitcoin, Ethereum and Solana. The offering also includes five commodity futures covering gold, silver and oil, along with index futures such as COIN50. Nano-sized contracts and leverage of up to 10 times make these products more capital-efficient and accessible to sophisticated investors.

The launch is strategically significant as derivatives account for a substantial share of global crypto trading. Coinbase estimates that crypto-derivatives volume is approximately 4.4 times that of the spot market. Establishing a presence in Canada’s derivatives market could therefore lift trading activity and transaction revenues while reducing Coinbase’s reliance on traditional spot-market volumes. A successful rollout could also serve as a blueprint for introducing regulated derivatives in other international markets.

Overall, the derivatives launch in Canada is a positive for Coinbase. It expands the company’s product portfolio, provides exposure to a considerably larger trading pool and reinforces its strategy of building a regulated global financial platform.

What About COIN’s Peers?Circle Internet Group’s (CRCL - Free Report) international expansion strengthened its position as a global fintech powerhouse. By expanding its footprint across Europe, Asia and Latin America, Circle has gained stronger access to regulated digital markets. By accelerating global USDC adoption, Circle positions itself for sustained growth and leadership in the rapidly evolving digital financial ecosystem.

Robinhood Markets’ (HOOD - Free Report) international expansion enables it to tap into rising global retail investing demand. By establishing operations in the United Kingdom and Asia, Robinhood broadens revenue streams and reduces reliance on U.S. markets. With strategic acquisitions and regional hubs, Robinhood is well-positioned for sustained growth and a stronger presence in the global fintech landscape.

COIN’s Price PerformanceShares of COIN have lost 15% in the year-to-date period, underperforming the industry.

Image Source: Zacks Investment Research

COIN’s Expensive ValuationCOIN trades at a price-to-earnings ratio of 73.06, significantly above the industry average of 16.52.

Image Source: Zacks Investment Research

Estimate Movement for COINThe Zacks Consensus Estimate for COIN’s third-quarter and fourth-quarter 2026 earnings per share (EPS) witnessed southbound movement in the last 30 days. The same holds true for 2026 and 2027.

Image Source: Zacks Investment Research

Key Takeaways Corning's Optical Communications sales rose 32% as AI infrastructure demand boosted growth.Corning's Amazon and NVIDIA deals expand optical connectivity capacity and data-center exposure.Smartphone weakness, China risks and customer concentration could temper Corning's growth prospects. Earnings estimates for Corning Incorporated (GLW - Free Report) for fiscal 2026 and fiscal 2027 have moved up 2.51% to $3.27 and 1.66% to $4.28, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.

Image Source: Zacks Investment Research

Strong AI-Related Demand, Diverse Portfolio are PositivesOptical Communications has emerged as Corning’s major growth engine. In the second quarter, the segment’s sales increased 32% year over year to $2.07 billion, while segment net income jumped 77% to $438 million. The uptick is backed by rapid AI infrastructure buildout.

Corning is expanding collaboration with some of the world’s largest tech companies. It has inked a multiyear, multibillion-dollar agreement with Amazon. Per the deal, Corning will provide optical fiber, cable and connectivity products for Amazon’s expanding U.S. data-center infrastructure. The company also announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%.

Corning’s Glass Innovations business is benefiting from its premium positioning and product innovation. The company expects Gorilla Glass sales to outperform the broader handheld market despite pressure from higher memory prices. TV manufacturers and panel makers are increasingly shifting towards larger and higher-priced televisions. This is likely to create a favorable opportunity for Corning’s Display Business.

Corning continues to enhance its financial profile under the Springboard initiative. The company has raised the ambition of its Springboard strategy, targeting an annualized sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Management expects sales to witness a 19% CAGR from the fourth quarter of 2026 through the fourth quarter of 2030, with earnings growing faster than sales.

Key ChallengesDemand softness in the handheld device market remains one of the key near-term challenges for the company. Management expects higher memory prices to push smartphone industry unit volumes down by a mid-teens percentage in 2026. Despite the company’s expectation of outperforming the market, demand for Gorilla Glass will likely be impacted by lower handset volume.

Corning maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff- related uncertainty. The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins, production efficiency and customer demand. Stiff competition can limit growth potential. Competition from companies such as Amphenol (APH - Free Report) and Ciena Corporation (CIEN - Free Report) may increase pressure on pricing.

Corning's growing AI infrastructure exposure enhances growth but increases reliance on a small number of large customers. In second-quarter 2026, contract liabilities totaled $2.7B and included a $1B customer deposit tied to a long-term AI infrastructure supply agreement, highlighting concentration risk even as it supports near-term visibility.

Price PerformanceCorning shares have gained 104% in the past year compared with the communications components industry’s growth of 157.1%. The stock has outperformed the S&P 500 indexduring this period.

Image Source: Zacks Investment Research

It has underperformed its competitor, Ciena, but outperformed Amphenol. Ciena has gained 179.1%, while Amphenol has declined 28.4%.

Key Valuation Metric of GLWFrom a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 36.51 forward 12-month earnings, higher than 35.16 for the industry.

Image Source: Zacks Investment Research

End NoteGrowing exposure to AI infrastructure and expanding optical content per AI system are major growth drivers for Corning. Focus on product diversification and exposure to various markets such as solar, automotive and display boost resiliency in the business model. Strong demand for Gorilla Glass is a positive. However, weakness in the smartphone market, high customer concentration risks and growing geopolitical volatility remain major concerns. With a Zacks Rank #3 (Hold), Corning seems to offer a balanced investment outlook, suggesting that investors may want to exercise caution when considering the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Achieves strong Q4 and FY26 revenue growth of 25% year over year
Generates Q4 and FY26 ARR growth of 25% year over year

SAN JOSE, Calif., Sept. 03, 2026 (GLOBE NEWSWIRE) -- Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its fiscal fourth quarter and fiscal year ended July 31, 2026.

“AI represents one of the most significant opportunities in Zscaler's history. By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companies both combat the threats created by agentic AI and securely deploy AI agents and models,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Our continued innovation across Zero Trust SASE, Agentic SecOps, Data Security, and Security for AI is driving increased platform adoption and creating new avenues for growth, as reflected in our strong Q4 results. As AI becomes foundational to how organizations operate, we are well positioned to extend our leadership as the cybersecurity platform for the AI era.”

“We delivered a strong fourth quarter, with revenue and ARR both growing 25% year over year, net new ARR growing 24%, and non-GAAP operating margin reaching a record 24%,” said Kevin Rubin, chief financial officer of Zscaler. “Our growth engine continues to broaden beyond users, with a strong contribution from non-seat-based solutions, continued Z-Flex momentum, record large-deal activity, and improving sales productivity. I am excited about our momentum as we enter fiscal 2027.”

Fourth Quarter Fiscal 2026 Results

Revenue: Grew 25% year over year to $898.2 million.ARR: Grew 25% year over year to $3,771 million, of which $246 million was net new ARR during the fourth quarter of fiscal 2026. Excluding the acquisition of Red Canary, which contributed ARR of $141 million, ARR grew 20% to $3,630 million and net new ARR grew 17%.Income (loss) from operations: GAAP loss from operations was $15.5 million, or 2% of revenue, compared to $32.2 million, or 4% of revenue, in the fourth quarter of fiscal 2025. Non-GAAP income from operations was $218.4 million, or a record 24% of revenue, compared to $158.9 million, or 22% of revenue, in the fourth quarter of fiscal 2025.Net income (loss): GAAP net loss was $3.4 million, compared to $17.6 million in the fourth quarter of fiscal 2025. Non-GAAP net income was $198.2 million, compared to $146.7 million in the fourth quarter of fiscal 2025.Net income (loss) per share, diluted: GAAP net loss per share, diluted, was $0.02, compared to $0.11 in the fourth quarter of fiscal 2025. Non-GAAP net income per share was $1.19, compared to $0.89 in the fourth quarter of fiscal 2025.Cash flow: Cash provided by operations was $279.3 million, or 31% of revenue, compared to $250.6 million, or 35% of revenue, in the fourth quarter of fiscal 2025. Free cash flow was $60.8 million, or 7% of revenue, compared to $171.9 million, or 24% of revenue, in the fourth quarter of fiscal 2025, reflecting capex and internal use software of $218.5 million in the fourth quarter of fiscal 2026 versus $78.7 million in the fourth quarter of fiscal 2025.Deferred revenue: Grew 19% year over year to $2,926 million as of July 31, 2026. Full Year Fiscal 2026 Results

Revenue: Grew 25% year over year to $3,353 million. Excluding the acquisition of Red Canary, Revenue grew 20% to $3,209 million.Income (loss) from operations: GAAP loss from operations was $133.3 million, or 4% of revenue, compared to $128.5 million, or 5% of revenue, in fiscal 2025. Non-GAAP income from operations was $767.1 million, or 23% of revenue, compared to $580.1 million, or 22% of revenue, in fiscal 2025.Net income (loss): GAAP net loss was $63.2 million, compared to $41.5 million in fiscal 2025. Non-GAAP net income was $704.2 million, compared to $534.8 million in fiscal 2025.Net income (loss) per share, diluted: GAAP net loss per share, diluted, was $0.39, compared to $0.27 in fiscal 2025. Non-GAAP net income per share was $4.21, compared to $3.28 in fiscal 2025.Cash flow: Cash provided by operations was $1,130 million, or 34% of revenue, compared to $972.5 million, or 36% of revenue, in fiscal 2025. Free cash flow was $779.1 million, or 23% of revenue, compared to $726.7 million, or 27% of revenue, in fiscal 2025. Change in Non-GAAP Measures Presentation

Beginning in fiscal 2026, we adopted a long-term projected non-GAAP tax rate of 21%, reduced from the previous rate of 23% which was applied to all prior periods. This adjustment aligns with the enactment of the One Big Beautiful Bill Act. The revised tax rate will apply prospectively. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations.

Financial Outlook

For the first quarter of fiscal 2027, the company expects:

Revenue of $935 million to $939 million, approximately 19% year-over-year growth.Non-GAAP gross margin of approximately 80%Non-GAAP income from operations of $215 million to $217 million, approximately 25% to 26% year-over-year growth, representing a 23% operating margin.Non-GAAP net income per share of approximately $1.15 to $1.16, assuming approximately 170 million fully diluted shares outstanding and a non-GAAP tax rate of 21%. For the full year fiscal 2027, the company expects:

ARR of $4.396 billion to $4.426 billion, growth of approximately 16.6% to 17.4%.Revenue of approximately $3.908 billion to $3.938 billion, growth of 16.6% to 17.5%.Non-GAAP gross margin of approximately 80%Non-GAAP income from operations of $924 million to $932 million, growth of approximately 21%.Non-GAAP net income per share of $4.86 to $4.90, assuming approximately 173 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.Free cash flow margin of approximately 23.0 to 23.5%. These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP income from operations and non-GAAP net income per share exclude, as applicable, stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets and amortization of debt issuance costs. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the "Explanation of Non-GAAP Financial Measures" section of this press release.

Conference Call and Webcast Information

Zscaler will host a conference call for analysts and investors to discuss its fourth quarter of fiscal 2026 and outlook for its first quarter of fiscal 2027 and full year fiscal 2027 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our financial outlook for the first quarter of fiscal 2027 and full year fiscal 2027. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission ("SEC"), including our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2026, filed on May 26, 2026, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

About Zscaler

Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across over 200 public data centers globally and thousands of private sites at the edge, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

Investor Relations Contacts

Kim Watkins
SVP, Investor Relations & Strategic Finance
[email protected] 

Nick Gonzalez
Media Relations Contact
[email protected] 

ZSCALER, INC.Condensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited)         Three Months Ended Year Ended July 31, July 31,  2026   2025   2026   2025 Revenue$898,185  $719,226  $3,352,523  $2,673,115 Cost of revenue(1) (2) (3) 208,964   172,240   777,629   618,178 Gross profit 689,221   546,986   2,574,894   2,054,937 Operating expenses:       Sales and marketing(1) (2)(3) 381,363   330,594   1,495,812   1,259,158 Research and development(1) (2) (3) 241,483   177,606   903,399   672,485 General and administrative(1)(3)(4) 81,867   71,028   308,950   251,754 Total operating expenses 704,713   579,228   2,708,161   2,183,397 Loss from operations (15,492)  (32,242)  (133,267)  (128,460)Interest income 35,042   33,175   136,132   125,364 Interest expense(5) (2,746)  (2,074)  (11,794)  (9,522)Other expense, net (1,900)  (762)  (8,210)  (5,673)Income (loss) before income taxes 14,904   (1,903)  (17,139)  (18,291)Provision for income taxes 18,273   15,675   46,040   23,187 Net loss$(3,369) $(17,578) $(63,179) $(41,478)Net loss per share, basic and diluted$(0.02) $(0.11) $(0.39) $(0.27)Weighted-average shares used in computing net loss per share, basic and diluted 161,872   156,496   160,219   154,404 
(1) Includes stock-based compensation expense and related payroll taxes:

Cost of revenue$22,978  $19,324  $87,469  $70,998 Sales and marketing 69,116   60,780   294,537   259,562 Research and development 93,176   69,149   341,880   257,663 General and administrative 29,938   31,542   117,762   97,311 Total$215,208  $180,795  $841,648  $685,534 
(2) Includes amortization expense of acquired intangible assets:

Cost of revenue$8,003  $3,655  $27,855  $14,975 Sales and marketing 4,277   425   15,613   1,700 Research and development —   —   —   145 Total$12,280  $4,080  $43,468  $16,820 
(3) Includes restructuring and other charges:

Cost of revenue$583  $138  $1,333  $138 Sales and marketing 3,692   —   6,501   — Research and development 617   4,783   1,799   4,783 General and administrative 627   —   627   — Total$5,519  $4,921  $10,260  $4,921                                 (4) Includes acquisition-related expenses:$923  $1,316  $5,000  $1,316                                 (5) Includes amortization of debt issuance costs:$2,045  $1,346  $8,166  $4,293 
ZSCALER, INC.Condensed Consolidated Balance Sheets(in thousands)(unaudited) July 31, July 31,  2026   2025 Assets   Current assets:   Cash and cash equivalents$928,354  $2,389,023 Short-term investments 2,545,797   1,183,386 Accounts receivable, net 1,149,073   992,181 Deferred contract acquisition costs 215,577   180,819 Prepaid expenses and other current assets 192,432   148,881 Total current assets 5,031,233   4,894,290 Property and equipment, net 753,001   543,377 Operating lease right-of-use assets 137,231   89,772 Deferred contract acquisition costs, noncurrent 402,423   328,722 Acquired intangible assets, net 214,355   47,323 Goodwill 1,218,098   417,730 Other noncurrent assets 110,373   98,674 Total assets$7,866,714  $6,419,888     Liabilities and Stockholders’ Equity   Current liabilities:   Accounts payable$47,972  $46,906 Accrued expenses and other current liabilities 133,304   93,984 Accrued compensation 234,640   181,807 Deferred revenue 2,480,501   2,054,417 Operating lease liabilities 64,894   52,497 Total current liabilities 2,961,311   2,429,611 Convertible senior notes 1,696,355   1,700,727 Deferred revenue, noncurrent 445,272   413,609 Operating lease liabilities, noncurrent 94,575   43,352 Other noncurrent liabilities 70,940   33,316 Total liabilities 5,268,453   4,620,615 Stockholders’ Equity   Common stock 163   159 Additional paid-in capital 3,874,379   2,980,591 Accumulated other comprehensive income (loss) (23,544)  8,081 Accumulated deficit (1,252,737)  (1,189,558)Total stockholders’ equity 2,598,261   1,799,273 Total liabilities and stockholders’ equity$7,866,714  $6,419,888 
ZSCALER, INC.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited)         Three Months Ended Year Ended July 31, July 31,  2026   2025   2026   2025 Cash Flows from Operating Activities       Net loss$(3,369) $(17,578) $(63,179) $(41,478)Adjustments to reconcile net loss to cash provided by operating activities:       Depreciation and amortization expense 42,933   30,260   148,544   104,361 Amortization expense of acquired intangible assets 12,280   4,080   43,468   16,820 Amortization of deferred contract acquisition costs 54,018   44,811   203,693   166,310 Amortization of debt issuance costs 2,045   1,346   8,166   4,293 Operating lease costs 22,487   15,102   82,934   62,998 Stock-based compensation expense 211,591   172,654   821,923   661,350 Accretion of investments purchased at a discount (87)  (2,061)  (4,655)  (15,923)Unrealized (gains) losses on hedging transactions, net 264   1,231   (772)  369 Deferred income taxes (20,713)  3,490   (20,387)  (14,351)Other 627   (72)  7,484   987 Changes in operating assets and liabilities, net of effects of business acquisitions:       Accounts receivable (420,031)  (376,516)  (139,989)  (256,010)Deferred contract acquisition costs (127,492)  (90,467)  (312,152)  (230,453)Prepaid expenses, other current and noncurrent assets 977   (29,390)  (28,076)  (41,572)Accounts payable 9,365   (11,415)  (10,627)  17,532 Accrued expenses, other current and noncurrent liabilities 18,243   12,213   36,417   5,180 Accrued compensation 54,003   26,690   44,590   20,997 Deferred revenue 445,776   483,041   379,873   573,052 Operating lease liabilities (23,632)  (16,815)  (67,601)  (62,009)Net cash provided by operating activities 279,285   250,604   1,129,654   972,453 Cash Flows from Investing Activities       Purchases of property, equipment and other assets (199,837)  (60,046)  (277,304)  (164,252)Capitalized internal-use software (18,684)  (18,637)  (73,207)  (81,508)Payments for business acquisitions, net of cash acquired (148,026)  —   (918,074)  (834)Purchase of strategic investments (6,171)  (38)  (10,413)  (824)Purchases of short-term investments (282,564)  (393,993)  (2,254,279)  (1,280,629)Proceeds from maturities of short-term investments 171,232   225,132   589,880   1,101,025 Proceeds from sale of short-term investments 113,097   —   290,665   — Net cash used in investing activities (370,953)  (247,582)  (2,652,732)  (427,022)Cash Flows from Financing Activities       Proceeds from issuance of common stock upon exercise of stock options —   84   3,984   3,581 Proceeds from issuance of common stock under the employee stock purchase plan 37,910   41,219   59,416   63,563 Payment of holdback amounts related to a business acquisition —   (352)  (110)  (792)Proceeds from issuance of the 2028 convertible senior notes —   1,725,000   —   1,725,000 Payments for issuance costs related to the 2028 convertible senior notes —   (24,150)  (684)  (24,150)Purchases of capped calls related to the 2028 convertible senior notes —   (196,650)  (197)  (196,650)Payments for settlement of the 2025 convertible senior notes —   (1,150,040)  —   (1,150,040)Net cash provided by financing activities 37,910   395,111   62,409   420,512 Net increase (decrease) in cash and cash equivalents (53,758)  398,133   (1,460,669)  965,943 Cash and cash equivalents at beginning of period 982,112   1,990,890   2,389,023   1,423,080 Cash and cash equivalents at end of period$928,354  $2,389,023  $928,354  $2,389,023 
ZSCALER, INC.Reconciliation of GAAP to Non-GAAP Financial Measures(in thousands, except percentages)(unaudited)         Three Months Ended Year Ended July 31, July 31,  2026   2025   2026   2025         Revenue$898,185  $719,226  $3,352,523  $2,673,115         Non-GAAP Gross Profit and Non-GAAP Gross Margin       GAAP gross profit$689,221  $546,986  $2,574,894  $2,054,937 Add:       Stock-based compensation expense and related payroll taxes(1) 22,978   19,324   87,469   70,998 Amortization expense of acquired intangible assets 8,003   3,655   27,855   14,975 Restructuring and other charges 583   138   1,333   138 Non-GAAP gross profit$720,785  $570,103  $2,691,551  $2,141,048 GAAP gross margin 77%  76%  77%  77%Non-GAAP gross margin 80%  79%  80%  80%        Non-GAAP Income from Operations and Non-GAAP Operating Margin       GAAP loss from operations$(15,492) $(32,242) $(133,267) $(128,460)Add:       Stock-based compensation expense and related payroll taxes(2) 215,208   180,795   841,648   685,534 Amortization expense of acquired intangible assets 12,280   4,080   43,468   16,820 Restructuring and other charges 5,519   4,921   10,260   4,921 Acquisition-related expenses 923   1,316   5,000   1,316 Non-GAAP income from operations$218,438  $158,870  $767,109  $580,131 GAAP operating margin(2)% (4)% (4)% (5)%Non-GAAP operating margin 24%  22%  23%  22%
(1) Includes acquisition-related stock-based compensation expense and related payroll taxes of $0.1 million for the fourth quarter of fiscal 2025, and $0.1 million and $0.2 million for fiscal 2026 and fiscal 2025, respectively. Acquisition-related stock-based compensation includes deferred merger consideration subject to post-combination service vesting conditions, performance stock awards, and acquisition replacement awards.

(2) Includes acquisition-related stock-based compensation expense and related payroll taxes of $19.8 million and $8.2 million for the fourth quarter of fiscal 2026 and fiscal 2025, respectively, and $57.4 million and $33.1 million for fiscal 2026 and fiscal 2025, respectively.

ZSCALER, INC.Reconciliation of GAAP to Non-GAAP Financial Measures(in thousands, except per share amounts)(unaudited)         Three Months Ended Year Ended July 31, July 31,  2026   2025   2026   2025 Non-GAAP Net Income per Share, Diluted       Net loss$(3,369) $(17,578) $(63,179) $(41,478)Add: GAAP provision for income taxes 18,273   15,675   46,040   23,187 GAAP income (loss) before income taxes 14,904   (1,903)  (17,139)  (18,291)Add:       Stock-based compensation expense and related payroll taxes(1) 215,208   180,795   841,648   685,534 Amortization expense of acquired intangible assets 12,280   4,080   43,468   16,820 Restructuring and other charges 5,519   4,921   10,260   4,921 Acquisition-related expenses 923   1,316   5,000   1,316 Amortization of debt issuance costs 2,045   1,346   8,166   4,293 Non-GAAP net income before income taxes 250,879   190,555   891,403   694,593 Non-GAAP provision for income taxes(2) 52,684   43,830   187,193   159,757 Non-GAAP net income$198,195  $146,725  $704,210  $534,836         GAAP provision for income taxes 18,273   15,675   46,040   23,187 Add: Income tax and other tax adjustments(2) 34,411   28,155   141,153   136,570 Non-GAAP provision for income taxes(2)$52,684  $43,830  $187,193  $159,757 Non-GAAP effective tax rate(2) 21%  23%  21%  23%        Non-GAAP net income$198,195  $146,725  $704,210  $534,836 Add: Non-GAAP interest expense, net of tax related to the convertible senior notes —   183   —   1,011 Numerator used in computing non-GAAP net income per share, diluted$198,195  $146,908  $704,210  $535,847         GAAP net loss per share, diluted$(0.02) $(0.11) $(0.39) $(0.27)Stock-based compensation expense and related payroll taxes(3) 1.29   1.09   5.04   4.20 Amortization expense of acquired intangible assets 0.07   0.02   0.26   0.10 Restructuring and other charges 0.03   0.03   0.06   0.03 Acquisition-related expenses 0.01   0.01   0.03   0.01 Amortization of debt issuance costs 0.01   0.01   0.05   0.03 Income tax and other tax adjustments(2) (0.21)  (0.17)  (0.84)  (0.84)Non-GAAP interest expense, net of tax related to the convertible senior notes —   —   —   0.01 Adjustment to total fully diluted earnings per share(4) 0.01   0.01   —   0.01 Non-GAAP net income per share, diluted$1.19  $0.89  $4.21  $3.28         Weighted-average shares used in computing GAAP net loss per share, diluted 161,872   156,496   160,219   154,404 Add: Outstanding potentially dilutive equity incentive awards 706   4,457   2,959   3,949 Add: Convertible senior notes 3,925   6,211   3,925   7,269 Less: Antidilutive impact of capped call transactions(5) —   (1,580)  —   (2,210)Weighted-average shares used in computing non-GAAP net income per share, diluted 166,503   165,584   167,103   163,412  (1) Includes acquisition-related stock-based compensation expense and related payroll taxes of $19.8 million and $8.2 million for the fourth quarter of fiscal 2026 and fiscal 2025, respectively, and $57.4 million and $33.1 million for fiscal 2026 and fiscal 2025, respectively.

(2) Beginning in fiscal 2026, we adopted a long-term projected non-GAAP tax rate of 21%, reduced from the previous rate of 23%, which was applied to all prior periods. This adjustment aligns with the enactment of the One Big Beautiful Bill Act. The revised tax rate will apply prospectively. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations.

(3) The dilutive impact of acquisition-related stock-based compensation expense and related payroll taxes was $0.12 and $0.05 per share for the fourth quarter of fiscal 2026 and fiscal 2025, respectively, and $0.34 and $0.20 per share for fiscal 2026 and fiscal 2025, respectively.

(4) The sum of the fully diluted earnings per share impact of individual reconciling items may not total to fully diluted non-GAAP net income per share due to the weighted-average shares used in computing the GAAP net loss per share differs from the weighted-average shares used in computing the non-GAAP net income per share, and due to rounding of the individual reconciling items. The GAAP net loss per share calculation uses a lower share count as it excludes potentially dilutive shares, which are included in calculating the non-GAAP net income per share.

(5) We exclude the in-the-money portion of the convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP but are expected to mitigate the dilutive effect of the convertible senior notes, and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

ZSCALER, INC.Reconciliation of GAAP to Non-GAAP Financial Measures(in thousands, except percentages)(unaudited)         Three Months Ended Year Ended July 31, July 31,  2026   2025   2026   2025 Free Cash Flow       Net cash provided by operating activities$279,285  $250,604  $1,129,654  $972,453 Less:       Purchases of property, equipment and other assets (199,837)  (60,046)  (277,304)  (164,252)Capitalized internal-use software (18,684)  (18,637)  (73,207)  (81,508)Free cash flow$60,764  $171,921  $779,143  $726,693         Free Cash Flow Margin       Net cash provided by operating activities, as a percentage of revenue 31%  35%  34%  36%Less:       Purchases of property, equipment and other assets, as a percentage of revenue(22)% (8)% (8)% (6)%Capitalized internal-use software, as a percentage of revenue(2)% (3)% (3)% (3)%Free cash flow margin 7%  24%  23%  27%                
ZSCALER, INC.
Explanation of Non-GAAP and Other Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (GAAP), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, as it has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of our historical non-GAAP financial measures to their most directly comparable financial measures stated in accordance with GAAP has been included in this press release. There is no GAAP measure that is comparable to ARR, so we have not reconciled the ARR data included to any GAAP measure. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business.

Expenses Excluded from Non-GAAP Measures

Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance. Acquisition-related expenses incurred with business acquisitions are excluded because these are not reflective of our ongoing operational performance. Restructuring and other charges includes severance and termination benefits in connection with a restructuring plan to streamline operations and to align people, roles and projects to our strategic priorities. These expenses are excluded because they fluctuate in amount and frequency and are not reflective of our core business operating performance.

Beginning in fiscal 2026, we adopted a long-term projected non-GAAP tax rate of 21%, reduced from the previous rate of 23% which was applied to all prior periods. This adjustment aligns with the enactment of the One Big Beautiful Bill Act. The revised tax rate will apply prospectively. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations.

Non-GAAP and Other Financial Measures

Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets and restructuring and other charges. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, restructuring and other charges and acquisition-related expenses. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue.

Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, restructuring and other charges, amortization of debt issuance costs, acquisition-related expenses and the non-GAAP provision for income taxes adjustment. We define non-GAAP net income per share, diluted, as non-GAAP net income plus the applicable non-GAAP interest expense related to the convertible senior notes divided by the weighted-average diluted shares outstanding. The weighted-average diluted shares outstanding includes the effect of potentially diluted common stock equivalents outstanding during the period and the anti-dilutive impact of the capped call transactions entered into in connection with the convertible senior notes.

Annual Recurring Revenue. ARR refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms.

Bookings. We define bookings as the total customer contract value over the entire duration of each such customer contract. This includes all recurring subscription fees committed for the full term of each such customer contract.

Free Cash Flow and Free Cash Flow Margin. We define free cash flow as net cash provided by operating activities less purchases of property, equipment and other assets and capitalized internal-use software. We define free cash flow margin as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property, equipment and other assets and capitalized internal-use software, can be used for strategic initiatives.

Key Takeaways Veeva Systems beat Q2 estimates, raised its fiscal 2027 outlook and advanced Vault CRM adoption.VEEV has more than 180 Vault CRM customers live, with commitments from 12 of the top 20 biopharmas.Veeva Systems' AI push is advancing, but market saturation and competition could constrain CRM growth. Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid second-quarter fiscal 2027 performance and CRM migrations, is expected to contribute further. However, market saturation remains a cause for concern.

This Zacks Rank #3 (Hold) company’s shares have gained 25.7% in the year-to-date period compared with 11.3% growth of the industry. The S&P 500 Composite has increased 10.8% during the said time frame.

The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $45.6 billion. The company anticipates 35% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 5.7%.

Reasons Favoring VEEV’s GrowthDiversified Platform Driving Durable Growth:Veeva Systems’ long-term growth story is increasingly tied to its position at the center of life sciences digital transformation. The company operates across a broad set of markets spanning clinical development, quality management, regulatory operations, safety, commercial engagement and data analytics. Veeva Systems’ Development Cloud portfolio is particularly well-positioned as pharmaceutical companies seek integrated platforms that connect clinical data, trial operations, quality processes and regulatory functions within a unified ecosystem.  

Growth is being fueled by newer product areas that remain in the early stages of penetration, including clinical data management, randomization and trial supply management, drug safety and laboratory information management systems. Management believes these businesses have a significant runway as customers increasingly favor end-to-end platforms over fragmented point solutions.

Enterprise CRM Migrations Expanding Account Footprint: Vault CRM adoption continued to advance in the second quarter of fiscal 2027, when Veeva Systems recorded its best CRM quarter and added two top-20 biopharma selections. Management said that Veeva Systems now has 12 of the top 20 CRM commitments, with two decisions remaining, up from 10 wins in the prior quarter.

More than 180 customers are live on Vault CRM, and one top-20 customer has enabled AI across its full field force. Commercial subscription revenues rose 13% year over year to $347.4 million, with management citing growth across CRM, content, data, Crossix and Ostro. The expanding live base supports ongoing migrations and creates opportunities to attach adjacent commercial applications as customers consolidate workflows on Vault.

Strong Q2 Results: Veeva Systems exited the second quarter of fiscal 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company also raised its fiscal 2027 outlook. Strong execution across Commercial Solutions and R&D and Quality Solutions, along with continued momentum in newer growth areas, remained encouraging.

Veeva Systems continued to make notable progress with Vault CRM. The platform recorded its best quarter ever, with more than 180 customers live, including five top 20 biopharmas. In August, two additional top 20 biopharmas and one large enterprise biopharma committed to Vault CRM, taking total top 20 commitments to 12 globally. A top 20 biopharma also deployed Vault CRM and Agentic Call Report across its entire U.S. field team during the quarter.

The company also advanced its AI strategy. Veeva Falcon, its agentic labor platform for clinical, regulatory and safety functions, now has five early adopters and remains on track for initial go-lives this year. Veeva Systems also acquired Copli and launched Veeva Falcon MLR to automate content reviews.

Vault AI added new standard agents, enhanced existing agents and introduced advanced tools for custom agent development in August. Management noted that customer interest in Falcon remains high, although product readiness and work with early adopters remain key near-term priorities.

Image Source: Zacks Investment Research

Factor That May Offset VEEV’s GainsMarket Saturation: The life sciences industry, Veeva Systems' primary market for its CRM solutions, is facing increasing saturation as digital transformation and CRM adoption have become widespread across pharmaceutical and biotech companies. Many large enterprises have already implemented Veeva Systems' CRM software or similar solutions, leaving fewer untapped opportunities for new customer acquisition.

Additionally, as smaller biotech firms and generics manufacturers enter the market, they may seek more cost-effective or niche CRM alternatives rather than Veeva Systems' premium offerings. This saturation, combined with heightened competition from both traditional CRM providers and emerging AI-powered platforms, could limit Veeva Systems' ability to maintain its historical CRM sales growth rates.          

Estimate TrendVeeva Systems is witnessing a positive estimate revision trend for fiscal 2027. In the past 30 days, the Zacks Consensus Estimate for fiscal 2027 earnings per share (EPS) has moved 17 cents north to $9.22.

The Zacks Consensus Estimate for third-quarter fiscal 2027 revenues is pegged at $933.8 million, indicating a 15.1% improvement from the year-ago quarter’s reported number. The consensus mark for fiscal third-quarter EPS is pegged at $2.33, implying a 14.2% improvement year over year.

Key PicksSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways American Water Works plans a $0.9M West Virginia upgrade, replacing 2,000 feet of aging water main.The West Virginia unit plans to invest $129M in infrastructure improvements across the state in 2026.AWK plans to invest $3.6B in 2026 and targets $19-$20B in infrastructure investment during 2026-2030. American Water Works (AWK - Free Report) announced that its West Virginia American Water unit plans to invest $0.9 million in infrastructure upgrades. The project involves replacing approximately 2,000 feet of aging water main with a new 6-inch PVC main.

West Virginia American Water continues to make regular investments to modernize its infrastructure and improve service reliability. The latest project forms part of the company’s plan to invest more than $129 million in infrastructure improvements across West Virginia in 2026.

The utility has consistently focused on upgrading and maintaining its water systems to provide reliable, high-quality service to customers. Over the past decade, West Virginia American Water has invested more than $805 million in infrastructure improvements, including the installation of approximately 168 miles of new water mains.

Importance of Investment for Aging InfrastructureInvestment in aging water and wastewater infrastructure strengthens system reliability and ensures the continued delivery of safe, high-quality services to customers. These upgrades reduce the risk of disruptions, improve operational efficiency and support smoother, more cost-effective system performance.

The U.S. water and wastewater infrastructure is deteriorating, with water main breaks occurring every two minutes, according to the American Society of Civil Engineers. The Environmental Protection Agency estimates that $1.25 trillion in investments will be needed over the next 20 years to maintain and expand water services.

 Regulated water utilities like American Water Works and others are making systematic investments to upgrade and expand infrastructure to provide reliable services to their customers. American Water Works plans to invest $3.6 billion in 2026 and target $19-$20 billion of investment during 2026-2030.

Utilities Step Up Investments in Infrastructure ModernizationApart from American Water Works, other regulated water utilities are also investing in infrastructure upgrades as per their financial capabilities. California Water Service Group (CWT - Free Report) aims to invest $627 million in 2026 and nearly $2 billion in the 2026-2028 period to upgrade its infrastructure.

Essential Utilities (WTRG - Free Report) invested $1.4 billion in 2025 and aims to invest $1.7 billion in 2026 for infrastructure development. This helps the company to provide safe and reliable service to customers and boost long-term growth.

Share Price Movement of AWKIn the past three months, American Water Works' shares have rallied 13.5% compared with the industry’s 7.2% growth.

Price Performance (three months)
Image Source: Zacks Investment Research

AWK’s Zacks Rank  American Water Works currently carries a Zacks Rank #3 (Hold).

A better-ranked stock to consider from the same industry is Global Water Resources (GWRS - Free Report) , which carries 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 2026 and 2027 earnings per share for GWRS has moved up 12.5% and 18.18%, respectively, in the past 60 days.

After last quarter's year-over-year revenue growth of 165.5% paired with the 12% (at the midpoint) increase in its already-impressive full-year revenue guidance, it's difficult to believe Bloom Energy (BE +8.36%) could dish out another pleasant surprise.

Except maybe it isn't. Despite economic headwinds like lingering inflation and weak consumer confidence, capital investments in artificial intelligence (AI) infrastructure are still being made in earnest.

Image source: Getty Images.

Bloom Energy manufactures electricity-generating fuel cells, by the way. Although the technology wasn't initially envisioned as a primary power source for AI data centers, as it's improved while data centers have become increasingly starved for electricity, it's become a viable option. Bloom Energy's solid-oxide fuel cells are particularly marketable in that -- unlike most other fuel cells -- they can use readily available natural gas to generate power.

The market is clearly embracing the solution, too, as evidenced by Q2's explosive revenue growth to just over $1.0 billion, versus Q1's top line of $751 million. That's why the company understandably expects to report total revenue of between $3.9 billion and $4.2 billion this year, up from April's guidance of a range between $3.4 billion and $3.8 billion.

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This upward-revised guidance may still ultimately be too conservative, though. As noted, demand for AI data center-capable power equipment -- all of it -- remains insatiable. Just last month, Bloom expanded its supply agreement with AI server manufacturer MiTAC Computing Technology. That follows April's announcement that its similar (but larger) partnership with Oracle is also being expanded, from 1.2 gigawatts to 2.8 gigawatts.

Connect the dots. Bloom Energy had already proven itself to be a capable power solutions provider. Now that it has, industries are looking for more of it simply because they're desperate, and Bloom can offer a workable solution right now. Don't be surprised to see more of the same kind of dealmaking before the end of the year.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Oracle. The Motley Fool has a disclosure policy.

The last two trading sessions have been particularly important for gold's price action in the short term. XAU/USD has gained more than 3.7% during this period, once again highlighting a meaningful bullish bias around the precious metal. For now, this recovery has been driven mainly by weakness in both the U.S. dollar and the bond market ahead of tomorrow's NFP release. Both markets remain important alternatives to gold, and their recent pullback appears to be allowing demand for the metal to recover. As long as this dynamic remains in place, buying pressure could continue to play an important role during the coming sessions.

How Is the Market Reacting Ahead of NFP?
Tomorrow, markets will focus on the release of the U.S. Non-Farm Payrolls (NFP) report, which measures changes in non-agricultural employment during August. Current expectations point to the creation of around 55,000 new jobs, a figure that would represent an improvement compared with July's reading, when approximately 23,000 jobs were lost.

However, beyond the headline number itself, what truly matters is the potential impact this report could have on the Federal Reserve's next monetary policy decision. At the moment, there is still no clear consensus regarding how the central bank will proceed at its mid-September meeting. While a more aggressive Fed was the dominant expectation just weeks ago, recent comments from policymakers have begun to support a more cautious approach.

Officials such as John Williams have indicated that they prefer to remain in a wait-and-see mode, highlighting that recent inflation data has been more encouraging. At the same time, Christopher Waller has suggested that he would support leaving rates unchanged if inflation continues to show signs of moderation.

This has increased uncertainty heading into the NFP report, as markets increasingly view the release as a potentially decisive factor for September's policy decision. In fact, CME Group probabilities currently show an almost evenly split scenario, with approximately 49% odds of rates remaining unchanged versus 51% odds of a rate increase. This reflects a decline in conviction around the idea of a clearly more hawkish Federal Reserve.

This uncertainty has already begun affecting markets that compete directly with gold. Both U.S. Treasuries and the dollar have reacted to recent Fed comments and to expectations surrounding the NFP release.

On one hand, 10-year Treasury yields have retreated from recent highs near the 4.8% area. On the other, the DXY Index, which measures the U.S. dollar against its major peers, has also moved back below the 99-point level. This highlights how sensitive both markets remain to monetary policy developments and suggests that investors are beginning to price in a less aggressive Fed scenario.

Source: Trading Economics

In this environment, the current dynamic remains particularly important for gold because weakness in alternative markets often supports a recovery in demand for the precious metal. This relationship becomes evident when comparing gold's performance with the DXY Index, where periods of dollar weakness continue to coincide with stronger price action in gold.

In addition, the correlation coefficient between both markets remains close to -0.93, reflecting a strong inverse relationship over the past 100 trading sessions. This suggests that continued dollar weakness may remain supportive of the recovery currently underway in gold. It is important to remember that correlation coefficients can change over time.

Source: TVC, StoneX, Tradingview

Against this backdrop, market attention will likely remain focused on how the Federal Reserve responds to tomorrow's labor market data. If job creation proves weaker than expected, the relative attractiveness of both bonds and the U.S. dollar could continue to decline, potentially extending buying pressure around XAU/USD. Conversely, if employment data shows significant strength, markets may begin reconsidering a more hawkish Fed outlook, which could push gold into a broader period of consolidation toward the end of the week.

Gold Technical Outlook

Source: StoneX, Tradingview

Trendline Continues Attempting to Hold: Recent gold price action continues to defend a long-term bullish trendline that remains one of the most important technical structures on the chart. As long as buying pressure remains stable and prices continue breaking through important technical barriers, a more established uptrend could begin to develop over the coming weeks.

 
RSI: The RSI has moved back above the neutral 50 level, signaling that average buying momentum is beginning to regain relevance within the market. If this dynamic continues to develop, the bullish bias could continue gaining importance in the short term.

 
MACD: However, it is also important to note that the MACD histogram continues to fluctuate near the neutral 0 line. This suggests that a degree of balance still exists within the average strength of short-term moving averages and indicates that the broader neutral environment has not disappeared completely from the chart.

 
Key Levels to Watch:

$4,530 – Critical Resistance: An important upside barrier that coincides with the 200-period Simple Moving Average. A sustained close above this level could begin to change the recent market structure and create room for stronger buying pressure during the coming sessions.

 
$4,332 – Nearby Barrier: An equilibrium area that has contained a large portion of price action over the last two weeks. It remains an important reference level for potential pullbacks and, as long as prices continue developing around this zone, a sideways environment could remain a relevant feature of the market.

 
$4,200 – Critical Support: This level coincides with the 50-period Simple Moving Average. Price action returning toward this area could begin to challenge the bullish structure that has developed recently and potentially open the door to a more dominant bearish bias in the weeks ahead.

 
Written by Julian Pineda, CFA, CMT – Market Analyst

Follow him on: @julianpineda25

Key Takeaways Teradyne stock lost 15.4% in a month amid customer concentration, timing, mobile and margin pressures. AI demand fueled more than 60% of Teradyne's Q2 revenues, strengthening data-center prospects. Teradyne expects Q3 revenues of $1.20-$1.30B and non-GAAP EPS of $1.85-$2.15. Teradyne (TER - Free Report) shares have plummeted 15.4% over the past month, underperforming the Zacks Computer & Technology sector and the Zacks Electronics - Miscellaneous Products industry’s 2.4% and 12.9% decreases, respectively.

TER shares have also underperformed its peers, which include Vertiv (VRT - Free Report) , Cohu (COHU - Free Report) and KLA Corporation (KLAC - Free Report) . The companies are also expanding their footprint in the AI infrastructure space. Vertiv, Cohu and KLA shares have lost 4.9%, 13.4% and 11.9%, respectively, over the past month.

The underperformance can be attributed to customer concentration, program timing, muted mobile demand, memory-driven margin dilution, higher operating spending and currency exposure.

TER Stock Performance
Image Source: Zacks Investment Research

Despite these headwinds, Teradyne is benefiting from strong AI-related demand, which is driving significant investments in cloud AI build-out as customers accelerate production of a wide range of AI accelerators, networking, memory and power devices. These factors are helping Teradyne fend off competitors such as Vertiv, Cohu and KLA.

Teradyne Rides on Strong Datacenter GrowthTeradyne is benefiting from accelerating AI-driven data-center investments, which are expanding demand across semiconductor test, networking, storage, product test and robotics. This momentum is strengthening Teradyne’s prospects in the broader data-center infrastructure ecosystem. More than 60% of Teradyne’s second-quarter 2026 revenues were AI-driven, underscoring the success of its wafer-to-AI-data-center strategy.

A key driver of Teradyne’s momentum is the acceleration in semiconductor capital expenditures, especially in wafer fabrication equipment (WFE). As WFE CapEx is forecasted to approach $250 billion by the end of the decade, this is expected to drive 5% to 10% annual growth in wafer production and 15% to 20% compound annual growth in total transistor production. The increase in wafer and transistor production directly boosts demand for automated test equipment.

Teradyne’s leadership in both SOC and memory test solutions, especially for high-bandwidth memory (HBM) and DRAM, ensures it is well-placed to capitalize on this growth. The company’s memory business also saw revenues exceed $200 million for the third consecutive quarter in the second quarter of 2026, driven by strong demand for HBM and DRAM and a revival in NAND testing.

Growth is being reinforced by Quantifi Photonics and the Multilane Test Products JV, which expand Teradyne’s exposure to optical and high-speed interconnect testing. The company expects the Co-Packaged Optics testing market alone to reach $300-$700 million by 2028. Robotics is also benefiting as AI data-center construction boosts automation demand in electronics manufacturing and semiconductor production.

Teradyne Rides on Strong UltraFLEXplus DemandTeradyne is benefiting from the growing demand for its UltraFLEXplus system, which has been specifically designed to address the complex testing requirements of high-performance processors and networking devices. UltraFLEXplus enables customers to reduce test development times, driving up high-efficiency volume production.

Teradyne’s expanding portfolio has been noteworthy. The company recently launched three new instruments for its UltraFLEXplus semiconductor test platform to address growing AI and data-center computing requirements. The UltraPin5000-EM offers expanded vector memory and faster pattern loading for complex AI devices, while UltraPort-PCIe6 supports PCIe Gen6 testing at 64 Gbps across 32 lanes.

The UltraVS64-HP delivers up to 1,280 amps per instrument to test increasingly power-intensive compute devices. Together, the products expand UltraFLEXplus capabilities across advanced digital, high-speed interface and power testing, supporting semiconductor manufacturers from wafer probe through final device validation.

TER Initiates Positive Q3 GuidanceTeradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth.

For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.27 billion, suggesting a 64.67% year-over-year increase.

For the third quarter, the company’s non-GAAP earnings are expected to be between $1.85 and $2.15 per share. The consensus mark for earnings is pegged at $2.03 per share, which has been unchanged over the past 30 days. This indicates growth of 138.82% on a year-over-year basis.

TER Trades at a PremiumTeradyne shares are currently overvalued, as suggested by its Value Score of D.

Teradyne stock is trading at a premium with a forward 12-month Price/Sales of 9.35X compared with the Computer & Technology sector’s 6.03X.

TER's Valuation
Image Source: Zacks Investment Research

What Should Investors Do With TER Stock?Teradyne’s robust, diversified portfolio, which meets the rising demand for AI-driven technologies, is consistently contributing to its growth prospects. These factors have justified its premium valuation.

TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Arm expects meaningful AGI CPU revenues in FY'28, accelerating to about $15B by FY'31.ARM says most CPU chips already rely primarily on its IP, supporting its position in the AGI CPU market.Arm does not expect the AGI CPU push to displace its existing IP and Compute Subsystems operations. Arm Holdings (ARM - Free Report) planned entry into the artificial general intelligence CPU market could become a major revenue catalyst. The opportunity began with demand from new customers, suggesting the market is pulling the initiative rather than ARM pushing it.

The company believes it holds a distinctive position because most CPU chips are already based primarily on its intellectual property. Meaningful AGI CPU revenues are expected to begin in fiscal 2028 before accelerating sharply to approximately $15 billion by fiscal 2031. That trajectory would establish a sizable new business within only a few years.

Crucially, management does not expect the AGI CPU push to displace Arm Holdings’ existing IP and Compute Subsystems operations. If that expectation holds, the planned CPU business could add a fresh revenue stream while preserving the economics of Arm Holdings’ established model. Execution will matter, since the forecast assumes a steep scale-up after meaningful sales begin.

How Do Two Computing Peers Compare?NVIDIA (NVDA - Free Report) is one peer investors may track as ARM’s CPU expansion takes shape. NVIDIA provides a computing reference point, but the supplied outlook offers no direct operating comparison. For ARM, the key measure versus NVIDIA will be whether customer demand develops into the projected fiscal 2031 revenue ramp.

Intel (INTC - Free Report) is another relevant peer as Arm moves closer to selling complete CPU products. Intel’s presence sharpens attention on execution, although the image does not provide peer-level forecasts. Arm’s progress relative to Intel will depend on reaching meaningful revenues in 2028 without weakening its current IP and CSS businesses during the planned ramp.

ARM’s Price Performance, Valuation and EstimatesThe stock has surged a massive 115% year to date, significantly outperforming the industry’s 24% rally.

                                                           Image Source: Zacks Investment Research

From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 35.78X, well above the industry’s 4.87X. It carries a Value Score of F.

                                                                    Image Source: Zacks Investment Research

The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has increased over the past 60 days.

ARM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways 10x Genomics shares rallied 84.1% in three months as consumables growth and Atera demand strengthened.TXG raised 2026 revenue guidance to $610M-$630M, with 2%-5% growth excluding patent settlements.10x Genomics' instrument revenue fell 47.2%, while its 11.9X forward sales multiple signals a premium. 10x Genomics, Inc. (TXG - Free Report) has surged 84% in the past three months, putting pressure on its fundamentals to keep pace with the stock. Consumables growth, Atera demand and a higher 2026 outlook provide support.

Weak instrument sales, operating losses and an elevated valuation leave less room for disappointment. Comparisons with genomics peers help frame whether TXG can sustain its recent lead.

TXG’s Consumables Momentum Strengthens the Growth CaseConsumables remain the steadier part of TXG’s business. Second-quarter 2026 consumables revenues increased 7% year over year, with Single Cell consumables up 3% as Flex Apex supported double-digit reaction-volume growth.

Spatial consumables rose 16%, primarily driven by Xenium. Recurring usage gives TXG a more durable revenue base than instrument placements, which remain sensitive to funding and capital-spending conditions.

Atera Could Extend TXG’s Spatial Biology OpportunityAtera adds another potential growth leg. Booked orders at the end of the second quarter already greatly exceeded TXG’s roughly 40-unit shipment plan for 2026, indicating strong early demand.

Near-term revenue conversion is constrained by manufacturing capacity, with most 2026 shipments expected in the fourth quarter. Customers are also moderating purchases of existing Spatial instruments before Atera arrives, creating a timing gap between demand and revenues.

How TXG Stacks Up Against ILMN and PACBIllumina, Inc. (ILMN - Free Report) offers a much larger-scale comparison. It reported second-quarter 2026 revenues of $1.16 billion, up 9.5% year over year, with a GAAP operating margin of 21.1%.

Pacific Biosciences of California, Inc. (PACB - Free Report) reported second-quarter revenues of $39.0 million compared with $39.8 million a year earlier, while consumables revenues increased to $20.1 million from $18.9 million. TXG’s recurring consumables growth stands out, but profitability and instrument demand remain key comparison points.

Image Source: Zacks Investment Research

TXG’s Raised Guidance Supports the RallyManagement raised 2026 revenue guidance to $610 million-$630 million from $600 million-$625 million. Excluding nonrecurring patent-settlement revenues in both periods, the updated range represents 2%-5% growth over 2025.

The outlook assumes the academic funding environment remains roughly consistent with recent conditions. The higher guidance therefore does not depend on a funding recovery, though better conditions could improve purchasing activity.

Image Source: Zacks Investment Research

Weak Instruments and Losses Keep Risk ElevatedSecond-quarter instrument revenues declined 47.2% year over year to $7.7 million. Single Cell instrument revenues fell 46.1%, while Spatial instrument revenues dropped 47.8%, reflecting fewer unit sales and the transition ahead of Atera.

TXG also recorded a $19.6 million operating loss despite gross margin reaching 74%. Stronger consumables demand has not yet translated into consistent operating leverage.

TXG’s Valuation Looks Demanding After the RallyTXG trades at 11.9X forward 12-month sales compared with 6.0X for its Zacks sub-industry and a five-year median of 6.3X. The stock therefore carries a sizable premium after its sharp advance.

That valuation raises the execution bar. Continued consumables growth and a smooth Atera ramp may be needed to support the premium as investors weigh TXG against ILMN and PACB.

Style Scores Favor Momentum More Than ValueThe bottom line is that TXG’s operating momentum has improved, but the 84.1% rally already reflects higher expectations. Atera demand and consumables trends provide support, while instrument weakness, losses and valuation limit the margin for error.

TXG currently carries a Zacks Rank #3 (Hold), with a Momentum Score of A, a Growth Score of B, a Value Score of F and a VGM Score of C. The scores favor momentum and growth characteristics more than value, while the Hold rank supports a balanced stance after the recent surge.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On-chain data for Kaspa ($KAS) is flashing an unusual signal: the gap between large private holders and exchange wallets has collapsed to levels not seen in at least a year, raising fresh questions about where big money is moving and why.

Supply Gap Narrows Sharply Wallets holding 10 million or more KAS have seen their combined balance fall to roughly 6.34 billion tokens, according to analysis flagged by @BSCNews. At the same time, exchange wallet balances have climbed to approximately 6.06 billion KAS, leaving a gap of only around 280 million units between the two cohorts. That is a dramatic compression from the roughly 4 billion unit difference recorded just one year ago.

The trend points to one of two dynamics, or a combination of both: large holders are moving tokens onto exchanges, potentially signalling an intent to sell, or exchange-held balances are being attributed to wallets that were previously counted in the large-holder tier. Either way, the structural shift is notable.

That context matters when interpreting what a shift in balances actually means for selling pressure.

What Whale Compression Can Signal However, the current data tells a more ambiguous story. The compression here is not obviously the result of broad redistribution to retail. Instead, it reflects large balances converging toward exchange wallets, which historically precedes increased selling activity.

The Kaspa community and analysts will be watching whether the narrowing gap translates into sustained exchange outflows or a broader distribution to smaller holders in the weeks ahead.

Kaspa operates as a proof-of-work, BlockDAG-based network.

Sources:
Who Really Owns Kaspa? On-Chain Data Reveals the Truth About Wallet Concentration (MEXC)
Kaspa Supply Distribution Table (Kaspalytics)
Kaspa Block Explorer (explorer.kaspa.org)

Key Takeaways Redwire's backlog hit $542.1M, up 64.5%, while 2026 revenue guidance remains $450M-$500M.Defense Tech revenue reached $61.9M as adjusted EBITDA improved to $14.1M from a $15M loss.RDW faces negative free cash flow, weak Space profitability and a 4.88X forward sales multiple. Redwire Corporation (RDW - Free Report) enters the second half of 2026 with faster Defense Tech growth, record backlog and a much stronger balance sheet. Those gains improve the growth case, but investors are still paying a premium sales multiple.

The decision depends on execution. Space profitability remains uneven and free cash flow is negative, leaving little room for disappointment if growth or margins slow.

RDW's Backlog Supports a Stronger Growth CaseContracted backlog reached $542.1 million as of June 30, 2026, up 64.5% year over year. Redwire also recorded more than $350 million of bookings during the first half, expanding funded demand for the back half.

Management reaffirmed full-year 2026 revenue guidance of $450 million to $500 million and said visibility to the midpoint had moved into the 90% range. That supports expectations for stronger second-half revenues if program timing and backlog conversion stay on track.

Redwire's Defense Tech Business Is Scaling FastDefense Tech revenues reached $61.9 million in the second quarter versus $5.1 million a year earlier. Segment adjusted EBITDA improved to $14.1 million from a $15 million loss, adding both scale and profit contribution.

Redwire received repeat Stalker orders, secured a high eight-figure multi-year Penguin Mk3 contract and delivered nearly 200 Octopus intelligence, surveillance and reconnaissance payloads year to date, up more than 15%. AeroVironment, Inc. (AVAV - Free Report) also develops autonomous and counter-uncrewed-aircraft systems, while Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) develops unmanned tactical aerial platforms. Both provide relevant context for investor interest in defense autonomy.

RDW Still Faces Uneven Profitability and Cash BurnSpace remains the weaker segment. First-half 2026 Space adjusted EBITDA was a $5.7 million loss compared with positive $8.5 million a year earlier, with higher research and development spending weighing on results.

Redwire reported negative free cash flow of $48 million for the first six months. First-half research and development expense rose to $25.1 million, and management indicated inventory would likely increase further in the third quarter to support faster uncrewed aerial system deliveries. Those investments may delay a cleaner cash-flow profile.

Redwire's Balance Sheet Improves but Dilution MattersTotal liquidity ended the second quarter at $607.8 million. Total debt fell 75% year over year to $48.9 million, reducing balance-sheet pressure and giving Redwire more flexibility to fund growth.

Common shares outstanding increased to 249.2 million as of June 30, 2026, from 191.9 million at the end of 2025, and the June at-the-market facility still had $350.4 million of unused capacity. Further equity issuance could extend the trade-off between funding flexibility and dilution.

RDW's Valuation Leaves Little Room for MisstepsRDW trades at 4.88X forward 12-month sales per share, above the Zacks sub-industry level of 2.38X and its five-year median of 1.38X. That premium raises the execution bar.

Backlog growth and Defense Tech profitability help support the valuation, but the multiple leaves less room for delays, weaker Space results or slower cash-flow improvement. Investors are paying for continued progress rather than a discounted recovery.

RDW's Neutral View Favors PatienceThe key question is whether Redwire can convert record backlog and Defense Tech momentum into more consistent consolidated profitability and free cash flow. The stronger balance sheet helps, but dilution and execution risks remain.

The stated Neutral view favors patience. Defense growth is encouraging, yet the premium sales multiple, weak Space profitability and ongoing cash burn argue for clearer evidence of sustained execution before the risk-reward improves.

RDW Stock Price MovementIn the past six months, Redwire shares have risen 11.3% against the industry’s decline of 17.3%.

Image Source: Zacks Investment Research

RDW’s Zacks RankRedwire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Aptiv PLC (APTV - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is APTIV PLC due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Aptiv PLC before we dive into how investors and analysts have reacted as of late.

Aptiv Q2 Earnings Beat EstimatesAptiv PLC reported mixed second-quarter 2026 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

APTV’s adjusted earnings of $1.63 per share topped the Zacks Consensus Estimate of $1.42 by 14.8% and increased 24.4% from the year-ago quarter, aided by stronger operating profitability, lower interest expense and a reduced share count.

Revenues of $3.27 billion missed the consensus mark of $3.32 billion by 1.4% but rose 2.3% year over year. Adjusted revenue growth was 2%, while non-automotive revenues increased 12%.

The company reported results excluding its Electrical Distribution (EDS) segment, which completed its spin-off into a new publicly traded company, Versigent, on April 1, 2026.

APTV’s Regional Growth MixNorth American adjusted revenues advanced 10% despite flat regional vehicle production. Asia-Pacific revenues grew 6%, including a 5% increase in China, even as Chinese vehicle production declined 3%.

Europe remained a headwind, with adjusted revenues falling 8% against a 1% production decline. Revenues in South America, Aptiv’s smallest region, decreased 4%. The regional results reflected strength in North America and Asia-Pacific, partly offset by weak European demand.

Aptiv’s Engineered Components Leads GrowthEngineered Components revenues increased 4.8% year over year to $1.80 billion. Adjusted revenue growth was 3%, with automotive revenues flat and non-automotive revenues up 11%. North American demand was the primary growth driver.

The segment’s adjusted EBITDA rose 17.5% to $403 million. Its adjusted EBITDA margin expanded to 22.4% from 21.4%, benefiting from higher volumes, operating execution and favorable timing of customer recoveries, despite stranded costs following the Electrical Distribution Systems spin-off.

APTV’s Intelligent Systems Stays FlatIntelligent Systems revenues were $1.50 billion, compared with $1.51 billion in the prior-year quarter. Adjusted revenues were flat as a 12% increase in non-automotive business and 10% growth in Software and Services were offset by a 3% decline in automotive revenues.

Adjusted EBITDA decreased 8.3% to $210 million, while the segment margin contracted to 14% from 15.2%. Increased engineering investments and stranded costs more than offset performance initiatives during the quarter.

Aptiv’s Margins ExpandAdjusted EBITDA increased 12.1% to $613 million. The adjusted EBITDA margin expanded 160 basis points to 18.7% on a continuing operations basis, supported by higher volumes and favorable foreign-currency effects, partly offset by increased commodity costs.

Adjusted operating income rose 15.4% to $473 million, and the corresponding margin improved to 14.4% from 12.8%. GAAP operating income increased to $367 million from $325 million. Interest expense declined to $62 million from $92 million, while tax expense increased to $52 million from $16 million.

APTV’s Product Expansion Gains PaceAptiv secured about $5 billion in new commercial awards, comprising $2.4 billion in Intelligent Systems and $2.5 billion in Engineered Components. The company won its first commercial Gen 8 Radar award and expanded into robotics through a perception-systems award.

Non-automotive progress included robotics, drones, energy storage and commercial vehicles. Aptiv also reported a commercial drone win in July and continued collaborating with NVIDIA on production-ready edge Artificial Intelligence platforms. Software and Services growth further supported the company’s diversification beyond automotive markets.

Aptiv’s Cash Flow & Capital MovesCash provided by continuing operations totaled $137 million, down from $326 million a year ago. Free cash flow was $12 million compared with $219 million, reflecting capital expenditures and costs associated with separating the EDS business.

Aptiv ended June with $761 million in cash and cash equivalents and $5.33 billion in long-term debt. The company repurchased 4.1 million shares for $250 million during the quarter, bringing first-half repurchases to $325 million. About $1.8 billion remained under its authorization.

APTV Trims Its Q3 & 2026 OutlookFor the third quarter, Aptiv expects revenues to be in the range of $3.12-$3.22 billion.

APTV’s adjusted earnings are projected to be between $1.25 and $1.35 per share. Its adjusted EBITDA is projected between $545 million and $575 million, with a margin of 17.7%.

For 2026, revenues are forecast at $12.6-$12.8 billion, below the prior range of $12.8-$13.2 billion.

Adjusted earnings are expected between $5.60 and $5.80 per share compared with the previous outlook of $5.70-$6.10.

Customer-mix pressures, particularly in China, production changes, launch delays and software timing prompted the revised forecast.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -16.2% due to these changes.

VGM ScoresCurrently, APTIV PLC has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise APTIV PLC has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerAPTIV PLC is part of the Zacks Technology Services industry. Over the past month, SLB (SLB - Free Report) , a stock from the same industry, has gained 16.5%. The company reported its results for the quarter ended June 2026 more than a month ago.

SLB reported revenues of $8.97 billion in the last reported quarter, representing a year-over-year change of +5%. EPS of $0.55 for the same period compares with $0.74 a year ago.

For the current quarter, SLB is expected to post earnings of $0.62 per share, indicating a change of -10.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SLB. Also, the stock has a VGM Score of C.

A month has gone by since the last earnings report for Healthpeak (DOC - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Healthpeak due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Healthpeak Q2 FFO Beat Estimates on Leasing & Senior Housing GainsHealthpeak Properties reported second-quarter 2026 FFO, as adjusted, of 46 cents per share, which topped the Zacks Consensus Estimate of 44 cents by 4.6%. The figure was unchanged year over year. Total revenues of $771.6 million rose 11.1% year over year and beat the consensus mark of $726.2 million by 6.3%.

The results reflected solid leasing across outpatient medical and lab properties, along with stronger senior housing operations. Combined new and renewal lease executions totaled 1.6 million square feet, while total same-store adjusted NOI increased 1.8%.

Leasing Activity Supports Portfolio DemandOutpatient medical leasing remained the largest contributor. New lease executions totaled 327,000 square feet, while renewal leases reached 916,000 square feet. Total outpatient medical occupancy improved 20 basis points sequentially to 90.7%.

Lab leasing also advanced, with 222,000 square feet of new leases and 159,000 square feet of renewal leases. Total lab occupancy increased 80 basis points sequentially to 78.5%.

Healthpeak also entered into additional leases after the second quarter-end and reported a substantial pipeline under signed letters of intent.

Same-Store Mix Shows Uneven TrendsOutpatient medical same-store adjusted NOI grew 2.5% year over year to $189.1 million. Same-store cash real estate revenues increased 3.2%, while same-store cash operating expenses rose 4.4%. Same-store occupancy was 91.9%, down 50 basis points year over year.

Lab same-store adjusted NOI declined 3.2% to $114.2 million as revenues fell 2.1%. Same-store occupancy was 90.3%, down 410 basis points.

Senior housing was the standout, with same-store adjusted NOI rising 19.2% to $32.1 million. Occupancy in that portfolio increased 260 basis points to 88.6%.

Segment Results Reflect Senior Housing GrowthOutpatient medical adjusted NOI slipped 1.8% to $198 million, while lab adjusted NOI was nearly flat at $142.6 million.

Senior housing adjusted NOI increased 25.4% to $45.9 million. Janus Living, Healthpeak’s senior housing spin-off, generated second-quarter revenues of $216 million, up 45%, while adjusted EBITDAre rose 34% to $79 million. Healthpeak owned a 73.6% equity interest in Janus Living as of June 30, 2026.

Costs Rise With Expanded OperationsProperty operating expenses increased 20.6% year over year to $333.1 million. Depreciation and amortization rose to $283.4 million from $265.9 million, while general and administrative expenses increased to $22.5 million from $20.8 million.

Interest expense climbed 22.9% to $92.3 million.

Healthpeak Advances Capital RecyclingThe largest transaction was the sale of a 49% interest in an 86-property outpatient medical portfolio to Brookfield in July 2026. The portfolio was valued at $2.1 billion, and the deal generated approximately $1.025 billion in proceeds. Healthpeak retained a 51% interest and will continue to provide asset and property management services.

After quarter-end, Healthpeak used the Brookfield transaction proceeds to repay $650 million of senior notes and around $375 million of commercial paper borrowings.

Healthpeak generated $1.4 billion of proceeds from outpatient medical recapitalizations, seller financing loan repayments and dispositions during the second quarter and through Aug. 3, bringing year-to-date proceeds to $1.75 billion.

Healthpeak Strengthens LiquidityAvailable liquidity totaled $4.13 billion as of June 30. Cash and cash equivalents were $1.63 billion, up from $467.5 million at the end of 2025. Net Debt to Adjusted EBITDAre improved to 4.7X from 5.4X in the preceding quarter.

Healthpeak Raises Its 2026 FFO OutlookManagement increased its 2026 FFO, as adjusted, guidance to $1.73-$1.77 per share from $1.71-$1.75.

Total same-store cash adjusted NOI growth is now expected between 0% and 1.5% compared with the prior range of a 1% decline to 1% growth.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresAt this time, Healthpeak has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerHealthpeak belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Welltower (WELL - Free Report) , has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Welltower reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.61 for the same period compares with $1.28 a year ago.

Welltower is expected to post earnings of $1.64 per share for the current quarter, representing a year-over-year change of +22.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Welltower has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

It has been about a month since the last earnings report for Zeta Global Holdings (ZETA - Free Report) . Shares have added about 12.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Zeta due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Zeta Q2 Earnings Beat EstimatesZeta Global Holdings reported impressive second-quarter 2026 results.

Earnings of 21 cents per share beat the Zacks Consensus Estimate of 20 cents by 5%. GAAP earnings improved to 3 cents per share as the company generated net income of $8.2 million compared with a net loss of $12.8 million a year ago.

Revenues surged 43.5% year over year to $442.8 million, surpassing the consensus estimate of $420.2 million by 5.4%. Growth reflected strong AI adoption, customer expansion and higher platform usage. Super-scaled customers and their average revenue per user each increased 17%.

The stock gained 6% since the earnings release on Aug. 4 in response to the better-than-expected results and as guidance was strong. For the third quarter of 2026, Zeta expects revenues between $469 million and $472 million, implying growth of 39-40%. The midpoint increased by $10 million from the prior outlook.

Adjusted EBITDA is projected between $115 million and $116 million, representing growth of 47-49%. The corresponding margin is expected between 24.4% and 24.7%.

Management raised its 2026 revenue guidance to $1.811-$1.824 billion from a prior midpoint of $1.785 billion. The revised range indicates growth of 39-40%, or 24-25% excluding M&A and political candidate revenues.

Adjusted EBITDA is now expected between $404.1 million and $406.3 million. Free cash flow guidance increased to $254.8-$255.8 million, while GAAP earnings guidance rose to 9-11 cents per share.

ZETA Benefits From Broad-Based Revenue GrowthSecond-quarter revenues increased from $308.4 million in the year-ago period. Excluding acquisitions, revenues rose 28%, marking the company’s 21st consecutive quarter of more than 20% growth after excluding M&A and political candidate revenues.

Demand was broad-based across industries. Eight of Zeta’s top 10 verticals posted more than 20% trailing-12-month growth. Consumer and retail, financial services, automotive and healthcare accelerated from the preceding quarter.

The total sales pipeline expanded more than 60% year over year and increased by more than $100 million over the past 90 days. Pipeline creation per seller more than doubled, while average contract values for deals won increased more than 40%.

Zeta’s Customer Metrics Exceed Long-Term ModelThe number of super-scaled customers, which generate at least $1 million in trailing-12-month revenues, reached 197. This compares with 168 a year earlier and 189 in the first quarter, marking seven consecutive quarters of sequential growth.

Super-scaled customer average revenue per user reached $1.8 million, up from $1.6 million a year ago. Both customer-count growth and ARPU growth exceeded the ranges in Zeta’s 2028 model.

Customers using more than one use case increased 90% year over year, while those employing at least five channels rose more than 50%. Cross-sell and upsell deals won advanced 43%, reflecting traction from the One Zeta sales initiative and Marigold cross-selling.

ZETA’s AI Adoption Supports Platform ExpansionMore than 40% of super-scaled customers became monthly active Athena users within 130 days of its enterprise launch. Among all customers, the 20% that comprehensively adopted Zeta’s AI tools generated roughly 70% of revenues.

Within the super-scaled group, the 50% of customers with comprehensive AI adoption accounted for 75% of revenues. These AI-intensive users grew four times faster than customers still in the early stages of adoption.

Athena engagement is increasingly voice-based, with 83% of customer interactions conducted through spoken commands. Management also noted that 90% of new code generated during the quarter was automated, helping accelerate product development.

Zeta Delivers Margin and Cash Flow GainsAdjusted EBITDA increased 56% year over year to $91.7 million. Adjusted EBITDA margin expanded 170 basis points to 20.7%, reflecting integration savings and restructuring benefits from Marigold.

Operating expenses totaled $425.8 million compared with $313.5 million a year ago. Cost of revenues was $181 million, while selling and marketing, general and administrative, and research and development expenses were $104 million, $75.9 million and $42.2 million, respectively.

Operating cash flow rose 65% to $69.2 million. Free cash flow advanced 73% to $58 million, while free cash flow margin improved 220 basis points to 13.1%.

Zeta ended the quarter with cash and cash equivalents of $310 million and long-term borrowings of $197.5 million. The company also repurchased $29.9 million of shares during the quarter.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

VGM ScoresAt this time, Zeta has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Zeta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways BioMarin will receive royalties on Yuviwel sales, turning a patent dispute into a royalty stream.BMRN gets 20% U.S. royalties and 18% in the EU, Brazil and South Korea through May 2030.Yuviwel reached 8 million euros in second-quarter revenue and enrolled more than 220 patients by July 31. For BioMarin Pharmaceutical (BMRN - Free Report) , the FDA approval of Ascendis Pharma’s (ASND - Free Report) Yuviwel in February had created a problem — a new entrant targeting the same achondroplasia market as Voxzogo, its key revenue driver. But a recent settlement between the two companies has changed the economics of that competition in a meaningful way.

Rather than continue fighting a competitor that had already entered the market, BioMarin has found a way to make the competitor pay it. Under the settlement, Ascendis will pay BioMarin royalties on Yuviwel sales in the United States, European Union, Brazil and South Korea, effectively giving BMRN an economic interest in a drug that could otherwise take share from Voxzogo.

BMRN Turns a Patent Dispute Into a Royalty StreamWhen Voxzogo secured FDA approval in 2021, it became the first FDA-approved therapy for achondroplasia, the most common form of dwarfism. The drug is a C-type natriuretic peptide (CNP) analog administered once daily as a subcutaneous injection. CNP is a naturally occurring signaling molecule involved in bone growth.

When Ascendis launched Yuviwel in April, its entry was a significant challenge for BioMarin, as Voxzogo had previously been the only approved treatment for achondroplasia. Like Voxzogo, Yuviwel is also a CNP therapy but is administered once weekly. The ASND drug is designed to provide continuous exposure to active CNP, potentially offering a more convenient dosing profile than the BMRN drug.

BioMarin had alleged that Yuviwel infringed its intellectual property covering CNP technology, triggering patent disputes across the United States, Brazil, Denmark, Germany and South Korea, including before the U.S. International Trade Commission. But instead of continuing to fight, both companies have settled their disputes with a licensing deal.

Per the settlement terms, BioMarin will grant Ascendis a non-exclusive, worldwide license to certain patents covering Yuviwel and related products, allowing Ascendis to research, develop, manufacture and commercialize the drug across current and potential indications.

In return, Ascendis will pay BioMarin royalties equal to 20% of annual net sales in the United States and 18% in the European Union, Brazil and South Korea, from the first commercial sale in each territory through May 20, 2030. The U.S. royalty is also applied retroactively to Yuviwel's first commercial sale. All pending lawsuits between the two companies will also be dismissed.

Competitive Threat for BMRN Still RemainsThe settlement changes the competitive equation for BioMarin. Previously, every dollar of Yuviwel sales represented a potential dollar of revenue at risk for Voxzogo. Under the new agreement, Yuviwel sales can also generate revenues for BioMarin through royalties. This means that while greater adoption of Yuviwel could still put pressure on Voxzogo, BMRN will now participate in the growth of its competitor.

The opportunity is becoming more meaningful as Yuviwel gains traction. Ascendis generated €8 million in Yuviwel revenues in the second quarter of 2026, its first quarter of launch, and had enrolled more than 220 patients through July 31. More than 100 healthcare providers had prescribed the drug, with more than 65% of enrollments approved for reimbursement. Ascendis is also preparing for further expansion, with its EU filings under review and additional studies underway.

Still, the settlement does not eliminate the competitive risk for BioMarin. Royalties are only a partial offset to any erosion in Voxzogo sales, and the economics will ultimately depend on how quickly Yuviwel penetrates the market and how much of that growth comes at Voxzogo’s expense.

BioMarin’s Voxzogo could have another potential competitor by this time next year. Recently, BridgeBio Pharma (BBIO - Free Report) has submitted a regulatory filing with the FDA for infigratinib, an FGFR3 inhibitor that could become the first approved oral therapy for achondroplasia. The company expects a U.S. launch in mid-2027, subject to approval.

The arrival of another potentially differentiated therapy underscores that BioMarin’s competitive challenge is unlikely to end with Yuviwel. The company may have found a clever way to monetize one threat, but it will still need to defend Voxzogo as the achondroplasia market becomes increasingly competitive.

BMRN’s Price Performance, Valuation & EstimatesShares of BioMarin have risen 13% year to date, significantly outperforming the industry’s 11% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 3.06 times forward 12-month sales per share, higher than the industry average of 1.94 times.

Image Source: Zacks Investment Research

Movements in EPS estimates for 2026 and 2027 have been mixed over the past 30 days.

Image Source: Zacks Investment Research

BioMarin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zuckerberg's Q2 message was blunt about AI transforming Meta's business, yet the stock sits more than 25% below its all-time high while legal storms and a historic capex surge squeeze free cash flow to a fraction of last year's levels.…

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Meta (NASDAQ:META | META Price Prediction) has spent 2026 climbing out of a hole. The stock is down 12.2% year to date and down 21.43% over the past year, but Mark Zuckerberg’s Q2 message was unambiguous: “AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities.”

With shares near $595.72 and the 52-week high sitting at $788.22, the question is whether AI monetization can carry META back to record territory.

Our 24/7 Wall St. price target for Meta is $790.61 over the next 12 months, implying 33.34% upside. Our recommendation is buy, with confidence at 90%, our high-conviction tier.

24/7 Wall St. Price Target Summary Metric Value Current Price $595.72 24/7 Wall St. Price Target $790.61 Upside 33.34% Recommendation BUY Confidence Level 90% Why the Stock Sold Off, and What Changed Meta’s Q2 2026 report was a mixed picture. Revenue of $60.80 billion rose 27.96% and beat consensus, but diluted EPS of $6.18 missed the $7.2214 estimate as $2.40 billion in legal charges and $1.18 billion in severance from an 8,000-employee reduction weighed on the quarter.

Operating margin compressed to 31%. The stock has clawed back 3.92% over the past month as investors refocus on ad growth: impressions rose 14% and average price per ad rose 12%, with Advantage Plus products crossing a $75 billion annual run rate.

Why Bulls See a Breakout Ahead The bull case rests on AI compounding across ad ranking, creative tools, and net-new revenue lines. Susan Li disclosed that user-understanding models, GEM ad ranking, and sequence learning together drove an 8.3% increase in ad clicks and a 15.7% uplift in conversions on Facebook.

Meta business agents are already used by more than 1 million businesses weekly, and Meta AI daily interactions jumped 60% after the MuseSpark integration.

Analyst enthusiasm is broad, with 47 Buy and 8 Strong Buy ratings. Our bull-case path reaches $858 .41, a new all-time high, if enterprise AI monetization and Ray-Ban Meta glass sales ramp faster than expected.

What Could Go Wrong The bear case starts with CapEx. Meta guided full-year 2026 capital spending to $130 to $145 billion, and Q2 free cash flow collapsed to $784 million from $8.55 billion a year earlier. That spending has to be absorbed by power, cooling, and networking suppliers on the other side of the trade (we profiled seven of them in a free report here: 7 Stocks Powering the AI Boom).

Long-term debt has climbed to $83.66 billion, and youth-related U.S. trials scheduled for 2026 could produce material losses. Bulls counter that FCF pressure reflects front-loaded infrastructure investment while unit economics remain intact; operating cash flow was still $31.86 billion. Our bear-case path lands at $693.77, still above today’s price.

How Meta Compares to Alphabet and Amazon Alphabet (NASDAQ:GOOGL) is the cleanest ad and AI comparison. Alphabet trades at a forward P/E of 17 with an analyst target of $428.07, meaningfully cheaper than Meta’s forward multiple. Meta commands the higher multiple because its ad growth of nearly 28% is outpacing Alphabet’s 24.2% quarterly revenue growth.

Amazon (NASDAQ:AMZN) shares the AI-infrastructure capex story. Amazon carries a forward P/E of 22 with an operating margin of just 13.7%, versus Meta’s Family of Apps margins that run north of 40% in normalized quarters. This peer set makes our 24/7 Wall St. price target look reasonable rather than aggressive.

Company Forward P/E Analyst Target Meta ~15 $754.77 Alphabet 17 $428.07 Amazon 22 $327.67 Bottom Line on Meta’s Setup Our 24/7 Wall St. price target is $790.61 with a buy recommendation and 90% confidence. The scale tips on AI-driven ad efficiency that is already translating into double-digit conversion lifts.

The bull thesis strengthens if Q3 revenue lands in the upper half of the $61 to $64 billion guide and CapEx growth flattens into 2027. The thesis weakens if legal charges recur next quarter and free cash flow fails to recover.

Year 24/7 Wall St. Price Target 2026 $649 2027 $809 2028 $948 2029 $1,087 2030 $1,218 These projections assume Meta continues executing on AI monetization while scaling its infrastructure buildout. Significant upside or downside could come from the pace of enterprise AI adoption and the outcome of pending youth-safety litigation.

Contact [email protected] for any questions or corrections.

Microsoft's Xbox unit said Thursday that it will impose monthly cloud gaming time limits for Game Pass subscribers after years of unlimited access, as the company seeks to find a better balance between usage and costs.

Players will be able to pay for additional hours beyond the caps, which go into effect in November.

Across product organizations, Microsoft executives have been devising ways to charge customers based on usage to better reflect rising costs. Demand is climbing for the software company's finite amount of computing power — not unlike its technology peers — and clients of artificial intelligence products such as GitHub Copilot and the Microsoft 365 Copilot increasingly pay based on how much they use.

"We're introducing this model because the cost of providing cloud gaming grows as more people use it and play for longer," Xbox said in a blog post. "Moving to monthly limits allows us to keep offering the service while continuing to invest in its reliability and performance. We understand that for some players the practical result is a higher cost."

Users with high-end Game Pass Ultimate subscriptions, which cost $22.99 per month, will have access to 15 hours of cloud gaming. Game Pass Premium account holders, who pay $14.99 per month, will have 10 hours of cloud-based playtime, while Game Pass Essential, which costs $9.99 a month, includes five hours, according to the blog post.

Inside Xbox, new CEO Asha Sharma has been busy evaluating business model changes to return the division to growth and boost profitability. In July, Xbox said it would test ad-supported game streaming.

Just 4% of Game Pass subscribers spend more time each month streaming games through the cloud, Microsoft said. The company did not specify fees for extra hours.

Those who don't subscribe to Game Pass will be able to buy cloud gaming time to stream games they already own, Xbox said.

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