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Conference Call to be Held on June 5, 2026, at 8:30 AM (ET) May 22, 2026 08:00 ET  | Source: ABM Industries Incorporated

NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced that it will release its fiscal second quarter 2026 financial results on Friday, June 5, 2026, before market open.

ABM will host its quarterly conference call for all interested parties on Friday, June 5, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the ‘Investors’ section of the Company’s website, www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.

A supplemental presentation will accompany the webcast on the Company’s website.

A replay will be available approximately three hours after the webcast through June 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID # 13759986. A replay link of the webcast will also be archived on the ABM website for 90 days.

ABOUT ABM

ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience.

ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.

For more information, visit www.abm.com.

Contact:
Investor Relations:
Paul Goldberg
212-297-9721
[email protected]

Revenue increased 8.4% to a second quarter record of $2.3 billion, including organic growth of 6.1% and acquisition growth of 2.3%Record first half new sales bookings of $1.2 billionNet income improved to $43.1 million, or $0.73 per diluted share, as compared to $42.2 million, or $0.67, in the prior year Adjusted net income was $52.9 million, or $0.90 per diluted share, versus $54.1 million, or $0.86, in the prior yearAdjusted EBITDA increased to $131.7 million, versus $125.9 million last yearOperating cash flow was $66.2 million and free cash flow totaled $22.4 million, both well above the prior year NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal second quarter ended April 30, 2026.

"Our second quarter performance was highlighted by organic revenue growth of 6.1% and record first half new sales bookings of $1.2 billion," said Scott Salmirs, President and Chief Executive Officer. "Organic growth was especially strong in Technical Solutions ("ATS") and Aviation. Manufacturing & Distribution's ("M&D") robust growth was driven by healthy organic demand, further boosted by our recent WGNSTAR acquisition, which is performing well and contributing meaningfully to growth. The investments we have made in organic growth and acquisitions, along with our healthy backlog and constructive end-market conditions, have positioned us well for a strong second half."

Mr. Salmirs continued, "Beyond the top line, we executed well in the quarter, resulting in improved margin on a sequential basis and continued solid free cash flow generation, which was up significantly in the first half versus last year. Looking to the second half, we expect meaningfully higher volume in ATS and M&D, as well as improved service mix, especially within ATS. We also expect to benefit from our ongoing cost savings and pricing initiatives. Combined, these factors are expected to drive significant improvement in earnings and margin in the back half of the year."

Mr. Salmirs concluded, "We are encouraged by constructive demand trends across the majority of our end markets, and remain focused on executing with discipline as the broader macroeconomic environment continues to evolve. As such, our fiscal 2026 outlook remains unchanged."

Second Quarter Fiscal 2026 Results

Revenue increased 8.4% year over year to a second quarter record of $2.3 billion, including 6.1% organic growth and 2.3% growth from acquisitions. Revenue growth was led by ATS and Aviation, which grew 27% and 20%, respectively. ATS benefited from strong demand for battery energy storage systems and datacenter-related services, as well as contributions from its recent acquisition, while Aviation’s growth reflected healthy domestic air travel trends and the continued ramp of new contracts, including the recently won London Heathrow contract. M&D increased 17%, driven by acquisitions, recent client wins and ongoing expansions, while Education delivered growth of 2%, benefiting from price escalations. Business & Industry (“B&I”) was essentially flat, as strong growth in its UK operations was largely offset by the exit of certain clients.

Net income was $43.1 million, or $0.73 per diluted share, compared to $42.2 million, or $0.67 per diluted share, in the prior year period. The increase in net income primarily reflects lower tax expense and reduced corporate costs, partially offset by higher interest and amortization expense related to the WGNSTAR acquisition. EPS growth was further driven by the Company’s share repurchase activities earlier in the year. Net income margin was 1.9% versus 2.0% in the prior year.

Segment operating margin was 7.3% compared to 7.9% last year. The change in segment operating margin was driven mainly by the impact of newer contracts that came online last year in M&D and B&I, as well as by weather-related and ramp-up cost inefficiencies in Aviation.

Adjusted net income was $52.9 million, or $0.90 per diluted share, compared to $54.1 million, or $0.86 per diluted share in the prior year period. The year-over-year change primarily reflects the factors discussed above, with per share results benefiting from the Company's share repurchase activities.

Adjusted EBITDA increased to $131.7 million versus $125.9 million last year.

Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.

Net cash provided by operating activities was $66.2 million, and free cash flow was $22.4 million, compared to $32.3 million and $15.2 million, respectively, in the prior year period. The improvement year over year primarily reflects strong working capital management and ongoing advancements in the Company’s enterprise resource planning (“ERP”) implementation during the quarter. A reconciliation of net cash provided by (used in) operating activities to free cash flow can be found in the “Reconciliation of Non-GAAP Financial Measures” table.

Leverage & Liquidity

At the end of the second quarter, the Company’s total indebtedness stood at $1.9 billion, including $23.5 million in standby letters of credit, resulting in a total leverage ratio of 3.2x, as defined by the Company's credit facility. Available liquidity was $613.8 million, including $94.9 million in cash and cash equivalents. The Company expects its total leverage ratio to be below 3.0x by fiscal year-end.

Quarterly Cash Dividend

After the quarter’s close, the Board declared a cash dividend of $0.29 per common share, payable on August 3, 2026, to shareholders of record on July 2, 2026.

Outlook

The Company is reaffirming its fiscal 2026 outlook with the following updates. The Company now expects organic revenue growth toward the top end of the 3% to 4% range and total revenue growth toward the top end of the 4% to 5% range. Segment operating margin, defined as total segment operating profit divided by total revenue, is projected toward the low end of the 7.8% to 8.0% range, and adjusted EPS is still expected to be in the range of $3.85 to $4.15. This outlook now reflects the Company's updated approach to providing full year adjusted EPS guidance, which no longer excludes the impact of any prior-year self-insurance adjustments.

Interest expense is now forecast to be approximately $110 million, and the normalized tax rate is expected to be between 29% and 30%, excluding discrete and non-taxable items.

The Company cannot provide a reconciliation of forward-looking non-GAAP segment operating margin or adjusted EPS to the corresponding GAAP measure without unreasonable effort due to the uncertainty of timing and the magnitude of items such as acquisition and integration related costs, legal costs and other settlements. These items are inherently difficult to forecast and may result in a GAAP range that is too large and variable to be meaningful.

Conference Call Information

ABM will host its quarterly conference call for all interested parties on Friday, June 5, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the “Investors” section of the Company's website, located at www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time. 

A supplemental presentation will accompany the webcast on the Company's website.

A replay will be available approximately three hours after the webcast through June 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID #13759986. A replay link of the webcast will also be archived on the ABM website for 90 days.

About ABM

ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.

ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.

For more information, visit www.abm.com

Cautionary Statement under the Private Securities Litigation Reform Act of 1995

This press release contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our strategic initiatives, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could have an effect on our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we may not realize the growth opportunities and synergies that are anticipated from the WGNSTAR acquisition; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements.

Use of Non-GAAP Financial Information

To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and first six months of fiscal years 2026 and 2025. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM’s operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and first six months of fiscal years 2026 and 2025. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. The Company also presents total segment operating profit, which is the sum of the segment operating profit of each of its segments, and total segment operating margin, defined as total segment operating profit divided by total revenue, because management believes they are useful as they represent the aggregate value of income/profit created by its segments and exclude items not directly related to the segments for performance evaluation purposes. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31.

Contact: Investor Relations:Paul Goldberg (212) 297-9721 [email protected]   ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

 Three Months Ended April 30,  (in millions, except per share amounts) 2026   2025  Increase / (Decrease)Revenues$2,290.0  $2,111.7  8.4%Operating expenses 2,013.0   1,841.0  9.3%Selling, general and administrative expenses 171.1   175.1  (2.3)%Restructuring and related expenses 3.1   —  NM*Amortization of intangible assets 15.9   13.2  20.5%Operating profit 86.9   82.3  5.5%Income from unconsolidated affiliates 1.0   1.4  (28.6)%Interest expense (28.1)  (23.9) (17.6)%Income before income taxes 59.7   59.8  (0.1)%Income tax provision (16.6)  (17.6) 5.3%Net income$43.1  $42.2  2.1%Net income per common share     Basic$0.73  $0.67  9.0%Diluted$0.73  $0.67  9.0%Weighted-average common and common equivalent shares outstanding     Basic 58.9   62.6   Diluted 59.1   62.9   Dividends declared per common share$0.290  $0.265             *Not meaningful (due to variance greater than or equal to +/-100%)  ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)

 Six Months Ended April 30,  (in millions, except per share amounts) 2026   2025  Increase / (Decrease)Revenues$4,533.5  $4,226.6  7.3%Operating expenses 3,996.5   3,696.1  8.1%Selling, general and administrative expenses 340.9   344.1  (1.0)%Restructuring and related expenses 6.8   —  NM*Amortization of intangible assets 27.9   26.5  5.2%Operating profit 161.6   159.9  1.1%Income from unconsolidated affiliates 2.4   2.1  12.8%Interest expense (52.1)  (46.8) (11.4)%Income before income taxes 111.9   115.2  (2.9)%Income tax provision (30.0)  (29.5) (1.9)%Net income$81.8  $85.8  (4.6)%Net income per common share     Basic$1.37  $1.37  —%Diluted$1.37  $1.36  0.7%Weighted-average common and common equivalent
shares outstanding     Basic 59.6   62.7   Diluted 59.9   63.1   Dividends declared per common share$0.580  $0.530             *Not meaningful (due to variance greater than or equal to +/-100%)
                    ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

 Three Months Ended April 30,(in millions) 2026   2025 Net cash provided by operating activities$66.2  $32.3 Additions to property, plant and equipment (43.8)  (17.1)Purchase of businesses, net of cash acquired (242.5)  — Other 0.5   — Net cash used in investing activities$(285.8) $(17.1)Proceeds from issuance of share-based compensation awards, net 1.2   1.1 Repurchases of common stock, including excise taxes (3.0)  — Dividends paid (17.0)  (16.5)Deferred financing costs paid (1.3)  (8.0)Borrowings from debt 722.5   338.9 Repayment of borrowings from debt (488.2)  (327.0)Changes in book cash overdrafts 2.1   (5.5)Repayment of finance lease obligations (1.2)  (1.1)Net cash provided by (used in) financing activities$215.1  $(18.1)Effect of exchange rate changes on cash and cash equivalents (0.9)  2.7          ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)

 Six Months Ended April 30,(in millions) 2026   2025 Net cash provided by (used in) operating activities$128.2  $(73.9)Additions to property, plant and equipment (57.0)  (33.8)Purchase of businesses, net of cash acquired (242.1)  1.9 Other 0.7   0.4 Net cash used in investing activities$(298.4) $(31.6)Taxes withheld from issuance of share-based compensation awards, net (9.9)  (9.6)Repurchases of common stock, including excise taxes (94.7)  (21.3)Dividends paid (34.2)  (32.9)Deferred financing costs paid (1.3)  (8.0)Borrowings from debt 1,077.0   918.8 Repayment of borrowings from debt (779.2)  (700.0)Changes in book cash overdrafts 4.7   (46.0)Repayment of finance lease obligations (2.3)  (2.2)Net cash provided by financing activities$159.9  $98.7 Effect of exchange rate changes on cash and cash equivalents 1.1   1.0          ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)

(in millions)April 30, 2026 October 31, 2025ASSETS   Current assets   Cash and cash equivalents$94.9 $104.1Trade accounts receivable 1,517.2  1,471.1Costs incurred in excess of amounts billed 174.7  193.7Prepaid expenses 169.9  91.2Other current assets 77.2  78.6Total current assets 2,034.0  1,938.7Other investments 30.9  48.6Property, plant and equipment 209.7  177.2Right-of-use assets 90.0  95.1Other intangible assets, net of accumulated amortization 350.0  243.2Goodwill 2,738.4  2,591.1Other noncurrent assets 194.1  175.5Total assets$5,647.0 $5,269.5LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities   Current portion of long-term debt, net$41.8 $29.4Trade accounts payable 416.5  401.2Accrued compensation 217.0  195.0Accrued taxes—other than income 47.9  48.1Deferred Revenue 99.8  74.7Insurance claims 206.8  200.8Income taxes payable 3.8  4.0Current portion of lease liabilities 28.3  28.2Other accrued liabilities 329.7  324.1Total current liabilities 1,391.6  1,305.7Long-term debt, net 1,821.6  1,537.1Long-term lease liabilities 78.7  83.7Deferred income tax liability, net 71.5  39.9Noncurrent insurance claims 472.2  459.3Other noncurrent liabilities 59.1  54.3Noncurrent income taxes payable 4.1  3.9Total liabilities 3,898.7  3,483.8Total stockholders’ equity 1,748.4  1,785.6Total liabilities and stockholders’ equity$5,647.0 $5,269.5       ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

 Three Months Ended April 30, Increase/ (Decrease)(in millions) 2026   2025  Revenues     Business & Industry$1,015.8  $1,015.5  —%Manufacturing & Distribution 463.8   398.1  16.5%Aviation 310.8   260.1  19.5%Education 232.2   227.8  1.9%Technical Solutions 267.3   210.2  27.2%Total Revenues$2,290.0  $2,111.7  8.4%Operating profit     Business & Industry$76.7  $83.0  (7.6)%Manufacturing & Distribution 40.6   39.9  1.9%Aviation 16.3   16.5  (0.9)%Education 16.4   13.8  18.8%Technical Solutions 16.8   13.4  25.0%Segment operating profit$166.9  $166.6  0.1%Segment operating margin 7.3%  7.9%  Corporate (79.0)  (82.9) 4.7%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.0)  (1.4) 28.6%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions —   (0.1) 33.6%Total operating profit 86.9   82.3  5.5%Income from unconsolidated affiliates 1.0   1.4  (28.6)%Interest expense (28.1)  (23.9) (17.6)%Income before income taxes 59.7   59.8  (0.1)%Income tax provision (16.6)  (17.6) 5.3%Net income$43.1  $42.2  2.1%            ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES

REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)

 Six Months Ended April 30, Increase/ (Decrease)(in millions) 2026   2025  Revenues     Business & Industry$2,080.9  $2,038.4  2.1%Manufacturing & Distribution 886.1   792.4  11.8%Aviation 608.5   530.2  14.8%Education 460.9   453.2  1.7%Technical Solutions 497.1   412.4  20.5%Total Revenues$4,533.5  $4,226.6  7.3%Operating profit     Business & Industry$156.4  $162.4  (3.7)%Manufacturing & Distribution 77.0   79.3  (2.9)%Aviation 28.9   28.7  0.6%Education 38.0   27.8  36.6%Technical Solutions 25.2   30.0  (15.9)%Segment operating profit$325.4  $328.2  (0.8)%Segment operating margin 7.2%  7.8%  Corporate (160.9)  (166.1) 3.1%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (2.4)  (2.1) (12.8)%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.6)  (0.1) NM* Total operating profit 161.6   159.9  1.1%Income from unconsolidated affiliates 2.4   2.1  12.8%Interest expense (52.1)  (46.8) (11.4)%Income before income taxes 111.9   115.2  (2.9)%Income tax provision (30.0)  (29.5) (1.9)%Net income$81.8  $85.8  (4.6)%            *Not meaningful (due to variance greater than or equal to +/-100%)

ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(in millions, except per share amounts)

 Three Months Ended April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Income to Adjusted Net Income       Net income$43.1  $42.2  $81.8  $85.8 Items impacting comparability (a)(b)       Restructuring and related (c) 3.1   —   6.8   — Legal costs and other settlements (0.3)  0.3   (0.3)  5.1 Acquisition and integration related costs (d) 5.5   3.4   8.2   6.8 Transformation initiative costs (e) 5.3   10.7   14.2   19.0 Other (f) —   2.2   0.7   2.2 Total items impacting comparability 13.7   16.6   29.7   33.0 Income tax impact (g) (3.8)  (4.7)  (8.2)  (9.4)Items impacting comparability, net of taxes 9.9   11.9   21.5   23.6 Adjusted net income$52.9  $54.1  $103.3  $109.4                   Three Months Ended April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Income to Adjusted EBITDA       Net Income$43.1  $42.2  $81.8  $85.8 Items impacting comparability 13.7   16.6   29.7   33.0 Income taxes provision 16.6   17.6   30.0   29.5 Interest expense 28.1   23.9   52.1   46.8 Depreciation and amortization 30.2   25.7   55.9   51.6 Adjusted EBITDA$131.7  $125.9  $249.5  $246.6 Net Income margin as a % of revenues 1.9%  2.0%  1.8%  2.0%                  Three Months Ended April 30, Six Months Ended April 30, 2026
 2025
 2026
 2025
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share       Net income per diluted share$0.73 $0.67 $1.37 $1.36Items impacting comparability, net of taxes 0.17 $0.19  0.36  0.37Adjusted net income per diluted share$0.90 $0.86 $1.72 $1.73Diluted shares 59.1  62.9  59.9  63.1              Three Months Ended April 30, Six Months Ended April 30,  2026   2025   2026   2025 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow       Net cash provided by (used in) operating activities$66.2  $32.3  $128.2  $(73.9)Additions to property, plant and equipment (43.8)  (17.1)  (57.0)  (33.8)Free cash flow$22.4  $15.2  $71.2  $(107.8)                 (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company.

(b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures, including adjusted net income, adjusted earnings per share, and adjusted EBITDA, to no longer exclude the positive or negative impact of “prior year self-insurance adjustments”. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers’ compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to second quarter 2026 and first six months of 2026 results and retroactively to all presented periods to ensure comparability.

(c) Represents costs associated with restructuring program to further streamline our operations and improve the efficiency of our support functions.

(d) Represents acquisition and integration related costs associated with recent acquisitions.

(e) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives.

(f) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years.

(g) The Company's tax impact is calculated using the federal and state statutory rate of 27.72% and 28.11% for FY2026 and FY2025, respectively. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding.

Cintas’ $5.2B UniFirst Bid Ignites the Battle for Route DominanceABM Industries NYSE: ABM reported stronger second-quarter fiscal 2026 revenue growth and record first-half new sales bookings, while management maintained its full-year adjusted earnings outlook and said it expects a stronger margin performance in the second half of the year.

President and Chief Executive Officer Scott Salmirs said ABM had “a strong quarter,” citing 6.1% organic revenue growth and first-half new sales bookings of $1.2 billion, which he called a new record for the company. Growth was led by ABM Technical Solutions and Aviation, while Manufacturing and Distribution benefited from both underlying demand and the WGNSTAR acquisition.

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ABM Industries Stock: A Dividend King at a Discount“As we look ahead to the second half, the setup is compelling,” Salmirs said, pointing to expected volume growth in Technical Solutions and Manufacturing and Distribution, an improving service mix in Technical Solutions, and cost discipline and pricing actions.

Revenue rises to second-quarter record Executive Vice President and Chief Financial Officer David Orr said revenue increased 8.4% year over year to a second-quarter record of $2.3 billion. That included 6.1% organic growth and a 2.3% contribution from acquisitions, primarily WGNSTAR.

Dividend King ABM Industries is on Track for New HighsOrr said consolidated organic growth was the strongest ABM has delivered since the third quarter of 2022. By segment, Technical Solutions revenue grew 27%, Aviation rose 20%, Manufacturing and Distribution increased 17%, Education grew 2%, and Business & Industry was essentially flat.

Net income for the quarter was $43.1 million, or $0.73 per diluted share, compared with $42.2 million, or $0.67 per diluted share, in the prior-year period. Adjusted net income was $52.9 million, or $0.90 per diluted share, compared with $54.1 million, or $0.86 per diluted share, last year. Orr said the year-over-year changes primarily reflected higher interest and amortization expense, offset by lower tax expense and corporate costs, while per-share results were helped by recent share repurchases.

Adjusted EBITDA increased $5.8 million from the prior year to $131.7 million. Segment operating margin improved 20 basis points sequentially to 7.3%, but was down 60 basis points from a year earlier. Orr attributed the year-over-year decline mainly to the impact of contracts that came online last year in Manufacturing and Distribution and Business & Industry, as well as higher amortization expense tied to WGNSTAR.

Segment trends show strength in Technical Solutions, Aviation and M&D In Business & Industry, revenue was essentially flat at $1 billion. Orr said strength in ABM’s U.K. markets was partially offset by the mid-quarter exit of a large U.K.-based client and other client exits, particularly on the West Coast. Operating profit was $76.7 million and margin was 7.6%, down from $83 million and 8.2% a year earlier.

During the question-and-answer portion of the call, Salmirs said West Coast office markets remain pressured, particularly in technology-heavy cities such as Los Angeles, San Francisco and Seattle. He said competitors have made pricing and margin decisions that do not meet ABM’s thresholds. Orr said the exit of the large U.K. client would account for about 300 basis points of growth impact for Business & Industry in the second half.

Aviation revenue increased 20% to $310.8 million, supported by healthy travel demand and new contract wins, particularly a Heathrow contract. Operating profit was $16.3 million, with a margin of 5.3%, compared with $16.5 million and 6.3% last year. Orr cited weather-related costs, contract scope changes, TSA-driven operational disruptions and ramp-up costs for Heathrow as pressures on profit and margin.

Manufacturing and Distribution revenue rose 17% to $463.8 million, including 7% organic growth and 9% growth from WGNSTAR. Operating profit was $40.6 million and margin was 8.8%, compared with $39.9 million and 10% last year. Orr said margin was affected by the mix of newer contracts and $4 million of incremental amortization expense related to WGNSTAR. Excluding that incremental amortization, he said margin was 9.6%.

Education revenue grew 2% to $232.2 million, primarily from escalations. Operating profit increased 19% to $16.4 million, and margin expanded 100 basis points to 7%, driven by labor efficiency and escalation management.

Technical Solutions revenue grew 27% to $267.3 million, including 22% organic growth. Orr said the segment benefited from data center activity, battery energy storage system work and HVAC projects. Operating profit was $16.8 million, with margin of 6.3%, compared with $13.4 million and 6.4% last year.

WGNSTAR expands semiconductor reach Salmirs said the WGNSTAR acquisition has strengthened ABM’s position in semiconductor fabrication environments and is “performing well.” He said ABM secured tens of millions of dollars in new business during the quarter and delivered high double-digit organic revenue growth across its semiconductor market.

Responding to an analyst question, Salmirs said ABM previously had a strong presence in semiconductor facilities outside the fabrication area, while WGNSTAR operates inside the fabrication environment. He described the combination as making ABM a more seamless provider for semiconductor clients.

Salmirs said ABM has more than 60 semiconductor clients and operates at more than 300 sites. He added that ABM is working with 75% of U.S. and European fab makers by capacity and with seven of the 10 major OEMs. “We see in semiconductor space, double-digit growth continuing for a while,” he said.

Cash flow improves, leverage reduction remains priority ABM ended the quarter with total indebtedness of $1.9 billion, including $23 million in standby letters of credit. Total debt to pro forma adjusted EBITDA was 3.2 times. Available liquidity was $614 million, including $95 million in cash and cash equivalents.

Orr said the WGNSTAR acquisition pushed leverage above three times, as expected, and ABM expects to reduce leverage below three times by the end of the fiscal year. He said near-term capital allocation priority is debt repayment, though the company will remain flexible if value-creation opportunities arise.

Second-quarter cash flow from operations was $66.2 million, and free cash flow was $22.4 million. For the first six months, cash flow from operations was $128.2 million and free cash flow was $71.2 million, compared with a use of cash of $73.9 million and negative free cash flow of $107.8 million in the prior-year period. Orr said the approximately $180 million year-over-year improvement reflected working capital management and progress on ERP stabilization.

Full-year outlook maintained ABM maintained its fiscal 2026 adjusted earnings per share outlook of $3.85 to $4.15. Orr said ABM now expects organic revenue growth to be toward the high end of its 3% to 4% range. The WGNSTAR acquisition is expected to add about one additional point of revenue growth, bringing total growth to the high end of ABM’s 4% to 5% range.

Segment operating margin is expected to be toward the low end of the company’s 7.8% to 8% range, with margin expansion weighted toward the second half of the year. Orr said the improvement is expected to be driven primarily by better mix and volume in Technical Solutions.

Interest expense is now forecast at approximately $110 million because of higher-than-expected interest rates, which Orr said ABM plans to offset with additional cost actions. The company continues to expect free cash flow of about $250 million in 2026 before transformation and integration costs, the final RavenVolt earn-out and any incremental restructuring.

Salmirs said ABM’s end markets remain “largely constructive,” though the company is monitoring macroeconomic uncertainty and the potential impact of rising fuel costs on airline clients. He said ABM remains focused on deleveraging, disciplined capital allocation and margin improvement in the second half.

About ABM Industries NYSE: ABMABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company's core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.

Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ABM Industries Incorporated (ABM) Q2 2026 Earnings Call Transcript

Key Takeaways ABM kept FY26 adjusted EPS at $3.85-$4.15 while lifting growth outlook toward the high end.ABM expects back-half margin lift from higher ATS volume and a shift toward design & engineering work.ABM flagged B&I pressure from client exits and West Coast offices, but expects a cleaner margin profile. ABM Industries Incorporated (ABM - Free Report) used its fiscal second-quarter call to make a forward-looking case centered less on the quarter’s headline growth and more on what management sees as a stronger second half.

Executives pointed to a healthier mix in Technical Solutions, continued momentum in Manufacturing & Distribution, and improving cash flow as the main reasons they left full-year adjusted earnings guidance unchanged.

ABM Leans on Back-Half SetupPresident and chief executive officer Scott Salmirs said organic revenue growth of 6.1% and record first-half bookings of $1.2 billion showed that demand remained solid across much of the portfolio. He put particular emphasis on Technical Solutions, Aviation and the contribution from the WGNSTAR acquisition.

Salmirs also made the second half the focal point of the call. He said ATS and M&D should see meaningfully higher volume, while ATS should also benefit from a better service mix as project execution moves toward more design and engineering work.

That framing mattered because ABM’s quarter showed strong sales growth but still left investors watching margin progression closely. Management’s core message was that mix, pricing and cost actions are expected to do more of the earnings work later in the year.

ABM Industries Keeps Full-Year OutlookExecutive vice president and chief financial officer David Orr said ABM still expects adjusted earnings per share of $3.85 to $4.15 for fiscal 2026, while organic revenue growth is now expected toward the high end of the 3% to 4% range and total growth toward the high end of 4% to 5%.

Orr also said segment operating margin should land toward the low end of the 7.8% to 8.0% range. He tied that view to a stronger back-half ATS mix and volume, while noting that higher interest rates pushed projected interest expense to about $110 million.

That combination left the call balanced in tone. Management raised its growth posture within the range, but not its earnings range, signaling that improved operating execution still needs to offset financing pressure and earlier margin drag.

ABM Sees ATS and M&D Doing MoreTechnical Solutions was central to the call. Revenues rose 27% in the quarter, helped by data center work, battery energy storage systems and HVAC project activity, but profitability was held back by a heavier equipment and infrastructure mix.

In a Q&A with William Blair, Orr said large battery storage projects supported growth but carried lower margins because of their equipment-heavy profile. Salmirs added that the back half should include more design and engineering work, which he said has a stronger margin profile.

Manufacturing & Distribution also remained a key support. Orr said the segment posted 17% revenue growth, including 7% organic growth and 9% from WGNSTAR, while management continued to describe semiconductor demand and client expansions as meaningful tailwinds.

ABM Industries Addresses B&I PressureBusiness & Industry was the clearest soft spot on the call. Salmirs said flat organic performance reflected the exit of a large U.K. client and pressure in West Coast office markets, where ABM has been unwilling to match uneconomic competitive pricing.

In response to a Truist Securities question, Orr said the TfL exit alone would account for about 300 basis points of B&I growth impact in the back half. Management nevertheless argued that the client exits should help margins improve as lower-quality work rolls off.

That exchange gave investors more clarity on the second-half growth slowdown embedded in the outlook. ABM is accepting weaker B&I revenues in exchange for a cleaner margin profile.

ABM Highlights Cash Flow and LeverageCash flow was another area of emphasis. Orr said second-quarter operating cash flow reached $66.2 million and free cash flow totaled $22.4 million, while first-half operating cash flow improved by roughly $180 million from the prior year period.

Management linked that improvement to working capital discipline and ERP stabilization. Orr said leverage rose to 3.2 times after the WGNSTAR deal, but the company still expects to finish the fiscal year below 3 times.

Near-term capital allocation remains shaped by that goal. In Q&A, management said debt reduction is the priority, even as it continues to monitor the acquisition pipeline for later in the year or early next year.

ABM Industries Clarifies Risk and DirectionOne of the more important clarifications came around self-insurance adjustments. Orr said ABM now believes operational changes in the insurance program have improved predictability enough for those effects to be included in full-year guidance, a shift Salmirs said reduces a key fourth-quarter concern for investors.

Management also used the call to reinforce its strategic posture. Salmirs pointed to semiconductors, data centers, airport modernization and microgrids as the company’s most attractive growth lanes, while stressing discipline on pricing, contract selection and leverage.

The quarter’s financial results supported that backdrop without fully defining it. ABM posted adjusted earnings of $0.9, missing the Zacks Consensus Estimate of $0.92 by 2.05%. Revenues of $2.29 billion topped the Zacks Consensus Estimate of $2.22 billion, beating the consensus mark by 2.95%.

ABM’s Zacks SignalsABM carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. Within the Zacks framework, a Zacks Rank #3 can still be held, while a stronger Style Score indicates more attractive value and growth characteristics than momentum at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The VGM Score of A is favorable because it combines value, growth and momentum factors, but the Zacks Rank remains the primary signal in the system. That rank can change as earnings estimates are revised after the quarter, making post-report estimate trends the key factor to watch.

Key Takeaways ABM stock jumped 10.9% on June 5 after Q2 EPS of 90 cents missed estimates despite a revenue beat.Technical Solutions revenues rose 27.2% and Aviation 19.5%, helped by data centers and the Heathrow win.The free cash flow was $22.4M; leverage 3.2X with plan to drop below 3.0X by the fiscal year-end. ABM Industries Incorporated (ABM - Free Report) reported mixed second-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.

Despite the lower-than-expected earnings results, the stock rallied 10.9% following the earnings release on June 5.

ABM posted adjusted earnings of 90 cents per share in the second quarter of fiscal 2026, up 4.7% from the year-ago period but missing the Zacks Consensus Estimate of 92 cents by 2.2%.

Quarterly revenues rose 8.4% year over year to $2.29 billion and beat the consensus mark of $2.22 billion by 2.9%. Performance was supported by record first-half sales bookings, with strength led by Technical Solutions and Aviation.

ABM Shows Solid Top-Line Momentum Despite ExitsABM Industries delivered organic revenue growth of 6.1% in the quarter, with acquisitions adding 2.3% to reported growth. Management pointed to healthy demand across several end markets, including energy infrastructure, semiconductors and airport modernization, alongside steady recurring work that supports the company’s baseline revenue profile.

Business & Industry was flat organically, pressured by the exit of a large U.K. client during the quarter and additional customer exits, particularly on the West Coast. Management framed some of the exits as intentional, citing a focus on walking away from accounts that do not meet profitability thresholds.

ABM Industries Leans on ATS & Aviation for GrowthBy segment, Technical Solutions revenues climbed 27.2% year over year to $267.3 million, supported by data center activity, battery energy storage systems and contributions from recent acquisitions. Aviation revenues increased 19.5% to $310.8 million, reflecting healthy travel demand and the increase in the latest wins, including the London Heathrow contract.

Manufacturing & Distribution revenues rose 16.5% to $463.8 million, aided by client expansions and the WGNSTAR acquisition, while Education revenues improved 1.9% to $232.2 million on price escalations. Business & Industry revenues were essentially unchanged at $1.02 billion, as strength in U.K. operations was largely offset by client exits.

ABM Sees Mixed Profitability as Mix Shifts

Adjusted EBITDA improved to $131.7 million from $125.9 million a year ago, reflecting higher volume and improved execution in parts of the business. Still, the segmental operating margin declined to 7.3% from 7.9% last year, as newer contracts in Manufacturing & Distribution and Business & Industry weighed on profitability, and Aviation absorbed inefficiencies tied to weather-related costs and contract dynamics.

Within Technical Solutions, operating profit increased year over year, but the margin held near the prior-year level as the quarter skewed toward equipment-intensive infrastructure work. Management emphasized that project mix mattered, noting that a heavier “turning the wrenches” phase can carry lower margins than design-and-engineering work, with mix expected to improve later in the year.

ABM Industries Offsets Headwinds With Operating FocusOn a GAAP basis, net income rose to $43.1 million, or 73 cents per diluted share, from $42.2 million, or 67 cents per share, in the prior-year quarter. The company cited lower tax expenses and reduced corporate costs as positives, partially offset by higher interest expenses and amortization tied to the WGNSTAR acquisition.

In Aviation, profit was pressured by incremental weather-related costs, TSA-driven disruptions and ramp-up costs associated with Heathrow. In Business & Industry, the margin declined year over year due to contract mix shifts and increased sales investments, though management expects the margin to benefit in the back half as the impact of exited, lower-return work flows through.

ABM Highlights Cash Improvement & Deleveraging PathCash generation improved versus last year, with the operating cash flow of $66.2 million and a free cash flow of $22.4 million in the quarter. Management credited working-capital discipline and continued progress on enterprise resource planning implementation for the year-over-year improvement.

ABM ended the quarter with total indebtedness of $1.9 billion and available liquidity of $613.8 million, including $94.9 million in cash and equivalents. Leverage stood at 3.2X, and management reiterated an expectation to bring leverage below 3X by the end of the fiscal year, positioning debt repayment as the near-term capital allocation priority.

ABM Industries Reaffirms Outlook as Growth Skews to Back HalfABM maintained its adjusted earnings outlook for fiscal 2026 at $3.85-$4.15. The midpoint ($4) of the guided range is higher than the consensus estimate for earnings of $3.94.

The company projects organic revenue growth at the higher end of 3-4%, with total revenue growth toward the high end of 4-5%, including acquisition contributions.

Management expects margin expansion to be weighted to the second half, driven by improved volume and service mix in Technical Solutions and continued price escalation and cost actions. ABM also updated its guidance approach to include the impacts of prior-year self-insurance adjustments and forecast interest expenses of $110 million, with a normalized tax rate of 29-30%.

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

Earnings SnapshotRepublic Services, Inc. (RSG - Free Report) delivered solid first-quarter 2026 results, with EPS of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.

Revenues rose 2.6% year over year to $4.11 billion and marginally surpassed the consensus mark of $4.10 billion.

Corpay, Inc. (CPAY - Free Report) delivered a strong first-quarter 2026, with adjusted earnings of $5.80 per share, rising 28.6% year over year and surpassing the Zacks Consensus Estimate by 5.5%. Revenues of $1.26 billion increased 25.4% year over year and beat estimates by 4.4%.

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On April 23, 2026, ACI Worldwide Inc (ACIW) shares fell 4.6% today, closing at $42.21. The stock has experienced a 52-week range between $38.05 and $55.45, refl

By PYMNTS  |  April 26, 2026

 | 

ACI Worldwide and JPMorgan Chase have launched a partnership to combat payment fraud.

The collaboration, announced Friday (April 24), will see JPMorgan integrate its Kinexys Liink’s Confirm application into ACI Worldwide’s Fraud and Financial Crime solution. 

According to an ACI news release, the integration embeds account and payee verification right into payment workflows, allowing banks to help prevent fraud, protect customers, and support safer, faster payments at scale.

With this collaboration, financial institutions (FIs) get a “robust account validation capability, supporting a broad range of payment types and geographies,” the release added. 

“By unifying account and payee verification within an enterprise fraud platform, banks can apply consistent controls across payment rails, simplify compliance with evolving requirements, and strengthen protection as payment volumes continue to grow.”

Unlike traditional payments, transactions sent via instant rails are irreversible, the release continued. Once funds have been transmitted, they can’t be recalled, leaving institutions with no recovery window and making post‑transaction monitoring insufficient by itself.

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As fraud volumes keep climbing, there is a rising call across the industry for more robust account/payee verification for certain payments. The focus is increasingly on authenticating payment details upfront, so institutions can identify fraud before funds leave the account.

“At the same time, heightened consumer awareness, higher reimbursement pressures, and increased operational risk are leading banks to embed stronger verification controls directly into the payment flow as a standard feature of modern payments infrastructure,” the release added.

Despite fraud concerns around instant payments, legacy payment methods such as checks remain a leading source of fraud risk, as PYMNTS wrote earlier this year.

Checks are 16 times more likely to be lost, stolen or altered compared to electronic transfers, according to U.S. government data, while more than 50% of the businesses that suffered fraud last year still use checks. 

“Despite this, many organizations continue to view checks as safer than instant payment methods because of their physical nature, even as evidence suggests greater fraud exposure,” that report added.

By contrast, real-time payment rails are showing stronger security performance. Many institutions using instant payments say they’ve seen limited or no operational fraud impact, supported by ongoing monitoring, transaction-level visibility and quicker detection. As experience grows, perceptions are changing, with 37% of businesses pointing to security as a top benefit of embracing instant payments. This figure is up from 25% one year earlier.

“Still, confidence depends on readiness. FIs increasingly view fraud-prevention tools as essential to scaling instant payments,” PYMNTS added. “This view underscores the need to invest in monitoring, governance and exception handling as volumes grow.”

See More In: ACI Worldwide, B2B, B2B Payments, instant payments, JPMorgan Chase, Kinexys, News, PYMNTS News, real time payments, What's Hot, What's Hot In B2B

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

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OMAHA, Neb.--(BUSINESS WIRE)--Peru, Chile and Argentina are entering a decisive stage of their real‑time payments modernization journeys, with adoption expected to drive economic growth and financial inclusion across the region, according to the Real-Time Payments: Economic Impact and Financial Inclusion report. The study was commissioned by ACI Worldwide, and conducted by the Cebr (Centre for Economics and Business Research), a leading economic think tank.* By 2028, real-time payments are fore.

ACI Worldwide (ACIW - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +35.56%. A quarter ago, it was expected that this maker of software for electronic payments would post earnings of $1.05 per share when it actually produced earnings of $0.9, delivering a surprise of -14.29%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

ACI Worldwide, which belongs to the Zacks Computer - Software industry, posted revenues of $425.75 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $394.57 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

ACI Worldwide shares have lost about 9.5% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for ACI Worldwide?While ACI Worldwide has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for ACI Worldwide was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $429.7 million in revenues for the coming quarter and $3.19 on $1.89 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Descartes Systems (DSGX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.

This logistics provider is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +29.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Descartes Systems' revenues are expected to be $191.7 million, up 13.6% from the year-ago quarter.

OMAHA, Neb.--(BUSINESS WIRE)--ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, today announced that company management will participate in the following investor conferences: J.P. Morgan 2026 Global Technology, Media and Communications Conference, May 18 in Boston (President and CEO Thomas Warsop, CFO Bobby Leibrock, and SVP John Kraft) Baird 2026 Global Consumer, Technology & Services Conference, June 4 in New York City (CFO Bobby Leibrock and SVP John Kra.

Aristotle Capital Boston cut its stake in ACI Worldwide (ACIW +0.61%) by 105,810 shares in the first quarter, an estimated $4.44 million trade based on quarterly average pricing, according to a May 15, 2026, SEC filing.

What happenedAristotle Capital Boston disclosed in a May 15, 2026, SEC filing that it sold 105,810 shares of ACI Worldwide during the first quarter. The estimated value of this reduction, based on the average closing price for the period, was approximately $4.44 million. The stake’s quarter-end market value decreased by $9.56 million, a figure that includes both share sales and changes in the stock price.

What else to knowThe fund reduced its position in ACI Worldwide, which now represents 1.68% of its reported 13F assets under management.Top holdings after the filing:NASDAQ:AEIS: $48.88 million (3.04% of AUM)NASDAQ:MTSI: $45.84 million (2.85% of AUM)NYSE:HASI: $37.71 million (2.34% of AUM)NYSE:AER: $34.54 million (2.14% of AUM)NYSE:AGI: $33.85 million (2.10% of AUM)As of May 14, 2026, ACI Worldwide shares were priced at $40.87, down 15% over the past year and underperforming the S&P 500, which is instead up about 25%.Company OverviewMetricValuePrice (as of market close 2026-05-14)$40.87Market Capitalization$4.15 billionRevenue (TTM)$1.79 billionNet Income (TTM)$226.7 millionCompany SnapshotACI Worldwide offers digital payments software and platforms, including merchant management, payment processing, real-time payments engines, fraud management, and digital banking solutions.The firm generates revenue through software licensing, transaction processing fees, and value-added services for digital payments and electronic bill presentment.It serves banks, merchants, billers, and organizations in sectors such as consumer finance, insurance, healthcare, utilities, and government worldwide.ACI Worldwide, Inc. is a global provider of software solutions focused on digital payments and real-time transaction processing. The company leverages a broad product suite and cloud-based platforms to address the evolving needs of financial institutions and merchants. Its scale and deep expertise in payment infrastructure position it as a key enabler of secure, efficient, and innovative payment experiences across diverse industries.

What this transaction means for investorsEven with solid operating momentum, ACI shares have struggled to keep pace with the broader market, and some investors may simply be reallocating toward faster-moving areas of fintech and AI infrastructure, which seems like it could be the case here.

What makes the timing interesting is that ACI’s underlying business actually improved last quarter. First-quarter revenue rose 8% to $426 million, while adjusted EBITDA climbed 12% to $105 million. The company also raised full-year guidance after reporting strong growth in real-time payments and merchant solutions, both of which expanded more than 20%.

Meanwhile, management said annual recurring revenue bookings increased 39%, while recurring revenue climbed to nearly $313 million. ACI also repurchased $65 million worth of stock during the quarter and still has roughly $391 million remaining under its authorization.

Still, it remains unclear whether or how soon ACI can translate steady payments infrastructure demand into sustained earnings acceleration. The business appears healthier than the stock chart suggests, but investors likely still want proof that growth can consistently outpace legacy payments peers.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AerCap. The Motley Fool recommends the following options: long January 2027 $60 calls on AerCap. The Motley Fool has a disclosure policy.

As Europe’s payments industry enters a decisive phase marked by sovereignty pressures, new regulatory requirements and the rise of AI‑driven commerce, the industry’s most influential players will convene in London later this month to debate who controls the rails, bears the risk and shapes the future. ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, today announced Payments Unleashed EMEA, a two‑day, invitation‑only gathering of senior payments leaders taking place 29-30 June 2026. The event brings together executives from ACI Worldwide, Mastercard, Santander, Amazon, NVIDIA, PayPal, Rabobank and Nationwide, alongside regulators, analysts and fintech leaders, with a keynote from renowned fintech author Dr. Leda Glyptis.

Across Europe, policymakers are pushing to reduce dependence on non‑European payment infrastructure through initiatives such as the digital Euro and Wero, while new reimbursement rules are shifting fraud losses decisively onto banks. At the same time, AI agents are beginning to move from recommending purchases to executing them, raising unresolved questions around authentication, liability and who owns the customer relationship when software becomes the buyer.

Against that backdrop, Payments Unleashed EMEA will focus on four questions now shaping board‑level decisions across the industry:

Who controls the rails in a world of sovereignty mandates and global scale? Who pays for fraud as real‑time payments and reimbursement rules collide? Can cards survive the rise of pay‑by‑bank and instant account‑to‑account payments? What happens when AI starts buying things? The mainstage session opens with Dr. Leda Glyptis, author of Bankers Like Us and Beyond Resilience, whose work has become essential reading for leaders navigating payments modernisation. “Payments is no longer about keeping systems running; it’s about deciding who controls value, risk and trust in a real‑time world. Those choices are being made now, and they will define the industry for the next decade,” Glyptis said.

The mainstage sessions focus on three make‑or‑break questions for payments leaders: where to place bets as instant payments and fraud costs accelerate; whether Europe can reclaim payments sovereignty without breaking scale; and how AI is crossing from optimisation into execution as agentic systems begin to transact. Together, the sessions frame the decisions now redefining control, risk and value across the payments ecosystem.

“The biggest questions in payments are no longer technical, they’re strategic,” said Thomas Warsop, president and CEO of ACI Worldwide. “Who owns the rails? How do we manage fraud in a real‑time world? And what happens when AI becomes an active participant in commerce? These are no longer abstract debates; they are live decisions that will determine who leads and who follows. Payments Unleashed is where those decisions get tested.”

Confirmed speakers include Paul Horlock, chief payments officer at Santander, Otto Benz, director of customer technology and payments at Nationwide, Philip Bruno, chief strategy and growth officer, ACI Worldwide and senior leaders from Mastercard, Discover, Checkout.com, NVIDIA, PayPal, Nium, Fnality, Solaris and Rabobank, alongside analysts from Celent.

Payments Unleashed EMEA opens with a welcome reception on the evening of 29 June at 12th Knot rooftop bar at Sea Containers London, followed by a full day of keynotes, panels and executive roundtables on 30 June at the Hilton London Bankside, with dedicated banking and merchant tracks.

With places limited, senior payments leaders may request to attend at: Payments Unleashed EMEA

About ACI Worldwide

ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.

Copyright ACI Worldwide, Inc. 2026

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260609295828/en/

Key Takeaways McDonald's Q1 likely saw gains from value meals, menu innovation and pricing, despite weather hit.Shake Shack sales likely rose on menu innovation and openings, but margins faced cost pressures.Papa John's growth tied to promotions and digital strength, with weak North America trends weighing. The restaurant industry’s top line in first-quarter 2026 likely benefited from steady consumer demand for convenience-driven dining, particularly across quick-service and fast-casual segments. Value meals, limited-time offers and menu innovation likely helped sustain traffic, even as consumers remained selective with discretionary spending. Digital ordering channels and delivery platforms continued to support sales growth, while loyalty programs are likely to have enhanced repeat visits. Additionally, improving mobility and a gradual normalization of workplace routines in many regions might have supported dine-in occasions, especially during weekdays.

Another key contributor to revenue growth in the quarter is likely to have been pricing. Menu prices, which were raised over the past year to offset inflation, are likely to have remained elevated, driving higher average ticket sizes. Many operators also leaned into premium offerings and combo deals to boost per-customer spending. International markets might have provided an added lift, supported by stable demand trends and improved travel activity in certain regions. Overall, a mix of stable traffic and pricing carryover is likely to have helped sustain industry-wide revenue growth in the quarter.

On the bottom line, easing commodity inflation, particularly in select food inputs, is likely to have provided some margin relief in first-quarter 2026. Restaurants also continued to focus on cost discipline through simplified menus, improved labor scheduling and greater use of technology to enhance efficiency. These measures, combined with prior pricing actions, are likely to have helped offset still-high wage costs. Larger players, in particular, might have benefited from scale efficiencies and stronger supply-chain management, supporting profitability.

That said, some pressures are likely to have remained in the quarter. Consumer spending among lower-income groups might have stayed constrained, impacting traffic in certain segments. Labor and occupancy costs are likely to have remained elevated, while increased discounting and promotional activity to drive demand might have weighed on margins for some operators.

Companies in the broader Retail-Wholesale sector, such as McDonald's Corporation (MCD - Free Report) , Shake Shack Inc. (SHAK - Free Report) and Papa John's International, Inc. (PZZA - Free Report) , are set to report their first-quarter earnings on May 7.

Sneak Peek Into Upcoming Earnings ReleasesAmid a number of stocks, to identify those with the potential to beat earnings estimates, the following Zacks methodology can be used. The Zacks model suggests that a company needs to have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

McDonald's is scheduled to report first-quarter 2026 before the opening bell.

The company’s first-quarter performance is likely to have benefited from continued traction in value offerings, marketing initiatives and menu innovation. In the United States, McValue and the relaunch of Extra Value Meals are likely to have aided first-quarter performance. Management noted that McValue remains the foundation of its 2026 value strategy, while Extra Value Meals continued to support value and affordability perceptions. Momentum from nationally price-pointed offerings, including the $5 Sausage McMuffin with Egg meal and the $8 two-Snack Wrap meal in January, is expected to have supported traffic in the to-be-reported quarter.

International markets are likely to have remained supportive, albeit with some moderation. Management cited solid January momentum in International Operated Markets, backed by value, menu and marketing execution. However, growth is likely to have decelerated sequentially due to weather-related pressures across several European markets. Our model predicts first-quarter revenues from total international operated markets to rise 5.8% year over year to $3 billion.

However, weather disruption is expected to have hurt first-quarter sales. Management stated that severe weather in the United States beginning in late January pressured industry traffic, affected McDonald’s traffic and led several restaurants to close or reduce hours. The company estimated the weather impact at about 100 basis points for the full quarter.

The Zacks Consensus Estimate for MCD’s first-quarter 2026 revenues is pegged at $6.49 billion, indicating growth of 8.9% from the year-ago figure. Earnings per share (EPS) are pegged at $2.75, indicating growth of 3% from $2.67 reported in the year-ago quarter.

The company has an Earnings ESP of -0.44% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shake Shack is scheduled to report results before the opening bell.

The company’s top line is likely to have benefited from menu innovation and store openings. An emphasis on digital initiatives and licensed business bodes well. Marketing efforts aimed at increasing brand awareness are also likely to have supported sales momentum.

However, bottom-line performance is likely to have been pressured by elevated input costs, particularly in beef, alongside continued investments in marketing, digital capabilities and infrastructure. Higher labor and administrative expenses, along with potential weather-related disruptions in key regions, might have further weighed on margins despite steady revenue growth.

The Zacks Consensus Estimate for SHAK’s first-quarter 2026 revenues is pegged at $371.4 million, indicating growth of 15.8% from the year-ago figure. Earnings per share are pegged at 11 cents, indicating a decline of 21.4% from 14 cents reported in the year-ago quarter.

The company has an Earnings ESP of +19.41% and a Zacks Rank #3.

Papa John's is scheduled to report results before the opening bell.

For first-quarter 2026, Papa John's is likely to have benefited from strong brand-building initiatives, targeted value promotions and robust digital engagement through its loyalty program. Continued product innovation and technology upgrades that improved ordering convenience are likely to have supported traffic and customer frequency. Additionally, solid international momentum and unit expansion are likely to have provided some support to overall revenues.

However, performance is likely to have been pressured by weak North America trends amid a cautious consumer environment. Elevated promotional intensity, lower transaction volumes and a shift toward value offerings are likely to have weighed on comparable sales and margins.
The Zacks Consensus Estimate for PZZA’s first-quarter 2026 revenues is pegged at $483.5 million, indicating a decline of 6.7% from the year-ago figure. Earnings per share are pegged at 40 cents, indicating growth of 11.1% from 36 cents reported in the year-ago quarter.

The company has an Earnings ESP of -10.31% and a Zacks Rank #3.

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa Johns Announces First Quarter 2026 Financial Results.

Papa John's (PZZA - Free Report) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -20.28%. A quarter ago, it was expected that this pizza chain would post earnings of $0.33 per share when it actually produced earnings of $0.34, delivering a surprise of +3.03%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Papa John's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $478.61 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $518.31 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Papa John's shares have lost about 12.2% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Papa John's?While Papa John's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Papa John's was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $488.8 million in revenues for the coming quarter and $1.53 on $1.92 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Red Robin (RRGB - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 19.

This casual restaurant chain is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Red Robin's revenues are expected to be $378.16 million, down 3.6% from the year-ago quarter.

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For the quarter ended March 2026, Papa John's (PZZA - Free Report) reported revenue of $478.61 million, down 7.7% over the same period last year. EPS came in at $0.32, compared to $0.36 in the year-ago quarter.

The reported revenue represents a surprise of -1.01% over the Zacks Consensus Estimate of $483.48 million. With the consensus EPS estimate being $0.40, the EPS surprise was -20.28%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Papa John's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Number of Restaurants - System-wide: 6,020 versus 6,035 estimated by five analysts on average.Number of Restaurants - Total Franchised(Franchised North America+International Franchised): 5,550 versus the five-analyst average estimate of 5,561.Number of Restaurants - Franchised North America: 3,030 compared to the 3,020 average estimate based on five analysts.Number of Restaurants - Papa John's - Company-owned - Domestic: 457 versus the five-analyst average estimate of 463.Number of Restaurants - International Franchised: 2,520 compared to the 2,542 average estimate based on five analysts.Number of Restaurants - International: 2,533 versus the four-analyst average estimate of 2,552.Number of Restaurants - Total North America: 3,487 compared to the 3,481 average estimate based on four analysts.Revenues- Franchise royalties and fees: $47.58 million versus $47.34 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -1% change.Revenues- Advertising funds revenue: $43.47 million versus $41.68 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -0.5% change.Revenues- Other revenues: $21.79 million compared to the $22.69 million average estimate based on five analysts. The reported number represents a change of -8.3% year over year.Revenues- Commissary revenues: $222.64 million versus the five-analyst average estimate of $226.6 million. The reported number represents a year-over-year change of -2.8%.Revenues- Company-owned restaurant sales: $143.13 million compared to the $145.62 million average estimate based on five analysts. The reported number represents a change of -17.7% year over year.View all Key Company Metrics for Papa John's here>>>

Shares of Papa John's have returned -4.5% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

ATLANTA--(BUSINESS WIRE)--As recent airline uncertainty has left many travelers clutching expired boarding passes and loyalty points that were rendered useless, Papa Johns is offering a soft landing. Introducing Skies to Pies, a limited‑time offer that transforms Spirit Airlines' unusable loyalty program into something reliable: hot Papa Johns pizza. “Loyalty points don't mean much if you can't use them,” said Shivram Vaideeswaran, SVP of Brand Marketing at Papa Johns. “While we can't fix cance.

With the heights of earnings season finally past, investors and analysts are turning to analyzing what the first-quarter results say about the market and the economy. Chief among these messages? Most of the major tech companies involved in artificial intelligence (AI) are still firing on all cylinders.

However, evidence of the so-called "K"-shaped economy continues to mount. Subprime credit card specialist Capital One Financial's (COF 0.06%) Q1 earnings miss, for example, suggests that the average consumer is under increasing financial strain.

And it's not just Capital One saying it.

Image source: Getty Images.

Red flags for some Capital One turned $15.2 billion in revenue into an adjusted per-share profit of $4.42 during the three months ending in March, down 2% from the year-earlier top line, when the company reported earnings of $4.06 per share. Worse, analysts were expecting sales of $15.4 billion and a bottom line of $4.55 per share.

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Perhaps the real red flag in Capital One's Q1 numbers, however, is the portion of its loan portfolio that the company expects to sour. The credit card issuer's loan-loss provision came in at $4.07 billion versus estimates of only $3.77 billion, well up from the year-ago comparison of $2.37 billion. Charge-offs also jumped from $2.74 billion in Q1 2025 to $3.85 billion for the first quarter of this year.

Cardholders are spending more, but even more of this spending is ultimately turning into bad debt.

Body of evidence If this had been just a one-time stumble from only Capital One, it might be dismissible.

It's not just a one-off, though. This is the second consecutive quarter that Capital One missed analysts' earnings expectations. Pizza powerhouse Papa John's (PZZA +0.37%) also missed last quarter's revenue and earnings estimates, with a domestic same-store sales dip of 6.4% indicating that not even the usually resilient pizza business is immune to the economy's current challenges.

Although it topped last quarter's expectations, McDonald's (MCD +0.43%) relied heavily on its value meals during this stretch. CEO Chris Kempczinski made a point of saying that the current economic backdrop is "certainly not improving," adding that "it may be getting a little bit worse."

We're seeing the same message in other areas, too. Credit bureau TransUnion, for instance, reports that the number of credit card holders 90 or more days late on their payments inched up to nearly a two-year high of 2.53% in Q1. That's still not catastrophic. But, with total credit card balances at a record high of $1.12 trillion at a time when average per-borrower credit card balances have grown for four consecutive years, consumers are arguably at their breaking point.

Not all, but enough It's not every consumer, for the record. Rival card company American Express (AXP +0.35%) reported 15% earnings growth on a 9% improvement in last quarter's billed business. This is largely because it serves more affluent consumers who remain in a position to spend more, and to service their debts. Notably, AmEx's loss provisions aren't suddenly soaring.

Just don't lose sight of the bigger picture. All businesses eventually sell goods and services to consumers, or sell goods and services to consumer-facing companies. If enough consumers are sidelined, it will affect all corporations' top and bottom lines sooner or later.

American Express is an advertising partner of Motley Fool Money. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool recommends Capital One Financial and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Investment firm Irth Capital is working with Papa John's International's largest U.S. franchisee, who controls ​around 10% of the pizza chain's domestic restaurants, to take the company private, three sources told Reuters.

Papa Johns today announced the launch of four Papa Johns Pizza Planet experiences as part of their global collaboration celebrating Disney and Pixar’s upcoming June 19 theatrical release, Toy Story 5. Inspired by the legendary sci‑fi pizzeria first introduced in Toy Story in 1995, the activations reimagine the setting for today — bringing a familiar fan-favorite location off the big screen and into the real world.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260527093027/en/

Rendering of the Papa Johns Pizza Planet in Los Angeles

Opening on select dates throughout June across major cities including London, Seoul, Madrid and Los Angeles, each Papa Johns Pizza Planet pop-up will fully transport fans into the Toy Story universe, featuring all the elements synonymous with the iconic movie series. Designed as retro‑inspired pizza arcades, the spaces invite fans to step into an immersive world shaped by playtime and imagination as they reconnect over pizza.

The experiences will feature limited‑time‑only Toy Story 5 pizzas - Space Ranger Roni, Sheriff’s Roundup and Reach for the Pie - alongside exclusive packaging, collectibles, and merch created for pizza lovers and Toy Story fans alike. Guests can expect surprises around every corner, with gifting from adidas, Belkin and more up for grabs through giveaways.

For fans who can’t make it to a Papa Johns Pizza Planet, the adventure continues in Papa Johns restaurants and on the app around the world. From May 26 to July 19, Papa Johns will offer this limited‑edition Toy Story 5 menu globally, giving fans everywhere the chance to relive the magic. Papa Johns is also launching the first ever in-app game, Operation Pizza, that unlocks Papa Rewards perks for Papa Rewards members. The game will be available only in the U.S. to Papa Rewards members for one month, starting June 1, 2026.

Jenna Bromberg, Chief Marketing Officer at Papa Johns, said: “For so many, movie nights and pizza nights are one and the same and Toy Story has been a part of that experience for three decades — at the movie theater or around the table, sharing stories and slices. Bringing Papa Johns Pizza Planet to life lets us celebrate those moments, past and present, and recreate the feeling of coming together as a family over something familiar, comforting and fun.”

Chris Lyn‑Sue, SVP, General Manager of International at Papa Johns, added: “Toy Story is a franchise that has spanned generations, continuing to hold a special place in people’s hearts around the world — much like pizza does around the table. Papa Johns Pizza Planet is a place many fans will recognize and feel a connection. Bringing it to life today allows fans — old and new — to sit down, enjoy great pizza and make new memories together.”

“As excitement builds for the release of Toy Story 5, we’re thrilled to collaborate with Papa Johns on a campaign that brings this iconic experience off the big screen and into fans’ everyday lives,” said Lylle Breier, EVP, Partnerships & Events at The Walt Disney Studios. “Toy Story has always been about friendship, imagination, and the moments we share together, and Papa Johns Pizza Planet pop -ups give fans a chance to step inside that world and create new memories together.”

Fans can head to their local Papa Johns to find out more about the Toy Story 5 menus on offer and visit the links below for information Papa Johns Pizza Planet in their region:

Los Angeles:

8180 Melrose Ave., Los Angeles, CA 90046

June 12, 2026 12 p.m. – 7 p.m. local time Reserve your timed ticket here – tickets available starting Friday May 29 12p.m. ESTLondon:

471-473 The Arches, Dereham Place, London EC2A 3HJ, England

June 13 and 14, 2026 Noon – 8 p.m. local time Reserve your timed ticket hereSeoul:

72 Seongsu-ro, Seongdong-gu, Seoul, South Korea

June 12, 13, 14, 2026 11a.m. – 7 p.m. local time No tickets required Madrid:

203 Calle de Serrano, Madrid, Spain

June 16 through June 21, 2026 1p.m. – midnight local time No tickets required For more information or to order, visit papajohns.com or go to the Papa Johns app.

ABOUT PAPA JOHNS

Papa John’s International, Inc. (Nasdaq: PZZA) opened its doors in 1984 with one goal in mind:BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in Atlanta, Ga. and Louisville, Ky. and is the world’s third-largest pizza delivery company with more than 6,000 restaurants in approximately 50 countries and territories. For more information about the Company or to order pizza online, visit www.papajohns.com or download the Papa Johns mobile app for iOS or Android.

ABOUT DISNEY AND PIXAR’S TOY STORY 5

The toys are back in Disney and Pixar’s Toy Story 5, and this time it’s Toy meets Tech. Woody (voice of Tom Hanks), Buzz Lightyear (voice of Tim Allen), Jessie (voice of Joan Cusack) and the rest of the gang's jobs are challenged when they come face-to-face with Lilypad (voice of Greta Lee), a brand-new tablet device that arrives with her own disruptive ideas about what is best for their kid, Bonnie. Will playtime ever be the same? Toy Story 5 is directed by Academy Award® winner Andrew Stanton, co-directed by Kenna Harris, produced by Lindsey Collins, p.g.a., and written by Stanton and Harris. The film features an original score by Oscar® winner Randy Newman, who returns to score his fifth Toy Story feature. Toy Story 5 releases exclusively in theaters June 19, 2026. Rated PG.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260527093027/en/

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NEW YORK, June 1, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Papa John's International, Inc. (NASDAQ: PZZA) on behalf of the company's shareholders.  The investigation seeks to determine whether Papa John's International's directors breached their fiduciary duties in connection with recent corporate actions.

If you are a shareholder of Papa John's International and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/papa-johns-international-inc/

You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000.  One of our attorneys will personally speak with you about the case at no cost or obligation.

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SOURCE Purcell & Lefkowitz LLP

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An American favorite pizza chain is quietly disappearing from communities across the country.

Papa Johns is following through on its plan to close about 300 North American stores, with dozens of locations shuttering in the first quarter – primarily in core Sun Belt states.

A recent analysis of Papa Johns financial filings by Fast Company found that 44 stores closed across 17 states, with the highest concentration of closures in Texas, California, Florida and Arizona.

Multiple location closures have also been identified in Michigan, North Carolina and Virginia.

A Papa John’s restaurant is seen on Feb. 27, 2026, in Austin, Texas. Getty Images The pizza brand first announced in February that hundreds of underperforming restaurants would cease operations by the end of 2027, describing the locations as being primarily franchise-owned, more than a decade old and generating less than $600,000 in annual sales volumes (AUVs).

“We believe these closures will further strengthen the system, increasing AUVs by at least 3 percent and improve franchisee health by allowing franchisees to reallocate resources towards operational excellence in their remaining restaurants and open units in priority markets,” Papa Johns CFO Ravi Thanawala previously said.

Papa Johns pepperoni pizza for pan pizza taste test photographed Feb. 13, 2026. The Washington Post via Getty Images He also said that the majority of the company’s restaurants worldwide have “performed well over the years and delivered strong returns for both corporate and franchise owners,” and that the strategic closure of underperforming restaurants is “among the most impactful actions we can take to improve restaurant profitability and fleet health.”

However, shares of Papa Johns International were down roughly 21 percent year to date through Wednesday’s close. Over the past five years, shares of Papa Johns International have fallen more than 69 percent.

In addition to the Q1 store closures, filings showed that Papa Johns laid off 7 percent of its corporate workforce.

Pizza boxes stacked in a Papa John’s restaurant on Feb. 27, 2026, in Austin, Texas. Getty Images Not only are franchisees across the fast-food industry facing severe headwinds from inflation, supply chain expenses and labor costs, but pizzerias nationwide are facing stiff competition.

A recent Wall Street Journal report found that pizza restaurants are now outnumbered by Mexican restaurants and coffee shops.

Other pizza chain competitors have made strategic moves amid weakening demand, including rival Pizza Hut closing hundreds of locations and its parent company, Yum! Brands, reportedly looking into a potential sale of the chain.