Track market-moving stories before they get noisy

Synaptics (SYNA - Free Report) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.9 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +8.35%. A quarter ago, it was expected that this maker of touch-screen technology would post earnings of $1.15 per share when it actually produced earnings of $1.21, delivering a surprise of +5.22%.

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

Synaptics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $294.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.41%. This compares to year-ago revenues of $266.6 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.

Synaptics shares have added about 44.9% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Synaptics?While Synaptics has outperformed 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 Synaptics 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 $1.13 on $302.04 million in revenues for the coming quarter and $4.45 on $1.19 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, Electronics - Semiconductors is currently in the top 23% 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, Broadcom Inc. (AVGO - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.

This chipmaker is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +51.9%. The consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level.

Broadcom Inc.'s revenues are expected to be $22.04 billion, up 46.9% from the year-ago quarter.

Synaptics Incorporated (SYNA) Q3 2026 Earnings Call Transcript

May 12, 2026 16:30 ET  | Source: Synaptics Incorporated

SAN JOSE, Calif., May 12, 2026 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq:

SYNA) announced its plans for COMPUTEX Taipei 2026, June 2–5, at the Taipei Nangang Exhibition Center, where it will showcase how its AI-native compute, connectivity, and sensing solutions are helping accelerate the next wave of Edge IoT applications.

As Edge AI continues to move from concept to deployment, Synaptics is enabling developers to bring more intelligence, responsiveness, privacy, and efficiency directly onto devices. At COMPUTEX, Synaptics will demonstrate how its latest innovations, including Synaptics Astra™ AI-native embedded compute, next-generation wireless connectivity, and multimodal sensing, work together to support real-world AI experiences across smart home, industrial automation, physical AI, and smart enterprise applications.

Synaptics’ technology showcase will demonstrate how its compute, connectivity, and sensing solutions are used to power more context-aware smart home devices, from intelligent control and presence detection to robust wireless connectivity. It will also highlight how Edge compute and multimodal sensing support emerging physical AI applications, including more natural human-machine interaction, and vision- and voice-enabled robotics applications. For industrial and enterprise environments, Synaptics will showcase how on-device and on-premise Edge AI can enable applications such as assembly line monitoring and optimization, fleet and infrastructure management, intelligent public safety, and enhanced docking and workspace solutions.

Together, these demonstrations underscore an emerging industry shift: Edge AI is becoming increasingly important for applications that require real-time decision-making, lower latency, greater privacy, and dependable operation without constant cloud reliance. Synaptics’ tightly integrated approach to compute, connectivity, and sensing helps developers and design engineers reduce system complexity and accelerate time to market for differentiated AI-enabled devices.

Join Synaptics at COMPUTEX 2026, to experience the latest in Edge AI innovations and meet with experts shaping the future of intelligent IoT.

Where: Hall 2 (TaiNEX 2) Semiconductors & Hospitality Suites X0022 | Taipei, Taiwan
When: June 2-5, 2026

To schedule customer meetings, contact your local Synaptics Sales Representative. For media appointments, please email: [email protected].

About Synaptics Incorporated
Synaptics (Nasdaq:

SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, Facebook, Instagram, and YouTube, or visit www.synaptics.com.

Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding product capabilities, performance, power efficiency, availability, and potential applications of Synaptics’ technologies, as well as industry trends and the adoption of Edge AI technologies. These statements are based on current expectations, estimates, and projections and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Risks and uncertainties include, but are not limited to: changes in customer demand; the pace of adoption of Edge AI technologies; supply chain constraints; manufacturing and yield challenges; competitive product offerings and technological developments; and delays in product development or commercialization. For more information regarding these and other risks, please refer to the “Risk Factors” sections of Synaptics’ most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. Synaptics undertakes no obligation to update any forward-looking statements, except as required by law.

Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

For further information, please contact:

Media Contact
Synaptics Incorporated
Neeta Shenoy
[email protected]

Danielle Smith
Comms Lead
Pretzl
[email protected]

On May 13, 2026, Synaptics Inc SYNA shares rose 9.6% to a current price of $131.06. This increase reflects a significant price performance, particularly considering the stock has fluctuated between a 52-week low of $57.54 and a high of $134.27 over the past year.

GF Value™ verdict: The current price is $131.06, compared to a GF Value™ of $86.77, indicating that the stock is 51.0% overvalued.GF Score™: 78/100, which is considered above average.Most notable signal: Insiders sold $1.2 million in the last three months, with no buying activity reported. Is SYNA Overvalued or Undervalued? With a current price of $131.06, Synaptics Inc is significantly above its GF Value™ of $86.77, suggesting that the stock is overvalued by 51.0%. This overvaluation indicates a lack of margin of safety for potential investors, as the stock price exceeds what the intrinsic value calculations would suggest is reasonable. The GF Valuation label categorizes SYNA as significantly overvalued, which presents risks for current shareholders and potential buyers, as market corrections could lead to a decline in stock price.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given that SYNA’s stock is trading substantially above its GF Value™, it may be prudent to monitor the stock's performance closely, as any adverse developments in the market could lead to a swift reassessment of its value.

How Does SYNA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.3x 23.0x Currently, Synaptics Inc is trading at a forward P/E of 25.3x, which is above its 5-year median P/E of 23.0x. This suggests that the stock is trading at a higher valuation compared to its historical averages. The P/E analysis corroborates the GF Value™ verdict, indicating that SYNA is overvalued based on its historical performance metrics.

What Does SYNA's GF Score™ Tell Us? Metric Rating GF Score™ 78 Financial Strength 5/10 Profitability 6/10 Growth 6/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 78/100 indicates a solid performance in various key areas, particularly momentum, which is rated at 8/10. However, the financial strength and valuation ranks at 5/10 suggest that there are weaknesses in the company's overall financial health and valuation metrics. Growth and profitability are rated at 6/10, indicating a balanced but not exceptional performance in these categories.

What Are Insiders Doing with SYNA Stock? In the last three months, insiders of Synaptics Inc have sold approximately $1.2 million worth of shares, without any reported buying activity. This pattern of insider selling could suggest a lack of confidence among executives regarding the stock's future performance, which may be a red flag for investors. Lack of insider buying also diminishes the perception of strong internal belief in the company's growth potential at current valuations.

What This Means for Investors Based on the analysis of GF Value™, Synaptics Inc is currently overvalued. With a significant disparity between the current stock price and intrinsic value, potential investors should exercise caution and thoroughly evaluate the risks involved in entering a position at this level.

For the complete analysis, visit the Synaptics Inc SYNA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SYNA's GF Score™?

SYNA's GF Score™ is 78/100, indicating an above-average ranking that suggests strong potential for long-term returns.

Is SYNA overvalued or undervalued?

SYNA is currently overvalued, with a GF Value™ of $86.77 compared to its current price of $131.06.

What is SYNA's P/E ratio?

SYNA's forward P/E ratio is 25.3x, which is above its 5-year median P/E of 23.0x, reinforcing the view of overvaluation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

SAN JOSE, Calif., May 19, 2026 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) and Google Research will spotlight Edge AI use cases on the recently announced Synaptics Coralboard™ at Google I/O 2026. The Coralboard is designed to help developers move faster from prototyping to real-world Edge AI product development. Powered by the Synaptics Astra™ SL2610 product line with the Synaptics Torq™ NPU and Coral NPU technology from Google Research, the development board offers an open, feature-rich and standards-based platform for bringing multimodal on-device AI experiences to life.

Designed for always-on, power-efficient Edge AI, this version of the Coralboard combines a compact developer-ready design with a rich set of interfaces supporting rapid prototyping. Powered by the 2GHz Synaptics Astra SL2619 dual-core SoC with 2GB DDR4 DRAM and a 1 TOPS CNN and transformer capable NPU subsystem, the board supports CSI camera input, DSI display connectivity, RGB LEDs, microphones, and a buzzer. Optional add-ons expand platform capability via an M.2 module for Wi-Fi®/Bluetooth® connectivity, SD card support, USB peripherals, and mikroBUS-, and Qwiic-compatible sensors.

At Google I/O 2026, Synaptics is partnering with Google on “Jellectronica”, a live AI-powered music experience enabled by the Coralboard. In the pre-show installation, an NPU-accelerated YOLOv8 object detection model running on the Coralboard tracks movement of jellyfish from the Monterey Bay Aquarium via a live stream, turning motion data into control signals for a generative music performance powered by Google DeepMind’s Lyria Realtime model. The experience demonstrates how developers can combine vision and real-time inference at the Edge using an accessible developer platform like Coralboard.

Google I/O attendees can participate in an on-site experience for the opportunity to take home a Coralboard with an out-of-box developer experience that’s engineered to reduce setup time and speed up prototyping. With built-in support for hardware-accelerated Gemma™ 3 270M, together with the open-source MLIR-based Synaptics Torq™ toolchain, developers can build, optimize, deploy, and iterate on vision, audio, and generative AI workloads using a consistent workflow. The result is a practical platform for AI and ML engineers, system architects and OEMs building next-generation Edge AI products.

"Edge AI is evolving as a frontier for innovation. Coralboard gives developers a powerful new way to turn breakthrough AI into real-world experiences at the Edge,” said Yossi Matias, Vice President & Head of Google Research.

“We are very excited to put the Synaptics Coralboard directly into developers’ hands at Google I/O,” said Billy Rutledge, Director, Google Research. “Coralboard makes it dramatically easier to bring advanced AI to the Edge. By pairing efficient, AI-native hardware with an open software stack, this platform lowers the barrier to building private, always-on experiences that run all day in power-constrained environments. Our collaboration reflects a shared commitment to accessible, secure Edge AI for developers everywhere.”

“Gemma helps developers bring capable generative AI to smaller, efficient devices. With the Coralboard, developers can quickly test, tune, and deploy Gemma-based experiences for real-world Edge AI use cases,” said Olivier Lacombe, Product Director, Google DeepMind.

“We’re at a tipping point where AI is moving out of the cloud and into everyday devices. The Coralboard is designed to accelerate that shift—giving developers and OEMs a fast path to build and deploy real-time, multimodal AI products for the Edge at scale. Together with Google, we’re helping enable a new class of intelligent, always-on systems where performance, power efficiency, and on-device intelligence define the user experience,” said Vikram Gupta, SVP & GM, Edge Compute & Connectivity Solutions Division, Synaptics.

“We designed this platform to remove friction for developers. It is compact, feature-rich, and easy to extend, so teams can spend less time setting up hardware and more time building differentiated Edge AI applications,” said Robert Otreba, CEO, Grinn Global.

Synaptics and Google Research will showcase the limited edition Synaptics Coralboard at the Gemma pavilion during Google I/O 2026.

Stay tuned for more updates on upcoming additions to the Synaptics Coralboard family.

About Synaptics Incorporated
Synaptics (Nasdaq:

SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, Facebook, Instagram, and YouTube, or visit www.synaptics.com.

About Grinn
Grinn is a full-cycle technology company specializing in the design and development of advanced IoT, embedded solutions and System-on-Modules. From initial concept through production, Grinn offers comprehensive services in hardware design, embedded software development, mechanical engineering, and manufacturing support. Grinn specializes in Edge AI solutions for IoT, robotics, industrial systems, HMI, computer vision, security, and high-performance AI applications, enabling intelligent, real-time decision-making at the device level. Through strong partnerships with global semiconductor leaders and a commitment to engineering excellence, Grinn delivers innovative, scalable, and market-ready solutions for organizations across the globe.

To learn more, visit: www.grinn-global.com

Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected features, performance, power efficiency, cost advantages, availability, and potential applications of Synaptics’ Coralboard™ and related technologies, as well as the anticipated benefits and impact of Edge AI technologies. These statements are based on current expectations, estimates, and projections and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Risks and uncertainties include, but are not limited to: changes in customer demand; the pace of adoption of Edge AI technologies; supply chain constraints; manufacturing and yield challenges; competitive product offerings and technological developments; and delays in product development, qualification, sampling, or commercialization. For more information regarding these and other risks, please refer to the “Risk Factors” sections of Synaptics’ most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. Synaptics undertakes no obligation to update any forward-looking statements, except as required by law.

Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

For further information, please contact:
Media Contact
Neeta Shenoy
Synaptics Incorporated
[email protected]

On May 22, 2026, Synaptics Inc SYNA shares rose 8.6% today, bringing the current price to $143.69. This increase is part of a remarkable upward trend, with the stock experiencing a 52-week range between $57.54 and $144.23.

GF Value™ verdict: The current price is $143.69, compared to a GF Value™ of $86.96, indicating the stock is 65.2% overvalued.GF Score™: A score of 74/100, which is considered above average.Most notable signal: Insider activity shows that insiders sold $1.3M in the last 3 months, with no buying reported. Is SYNA Overvalued or Undervalued? Based on the GF Value™, Synaptics Inc is currently overvalued with a price of $143.69 compared to the estimated fair value of $86.96. This suggests that the stock is trading at a significant premium, with a margin of safety that is unfavorable for potential investors. The GF Valuation label classifies Synaptics as "Significantly Overvalued," which raises concerns about the sustainability of the current price level. Investors should be cautious, as overvaluation indicates a risk of potential price corrections in the future.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current overvaluation and the associated risks, it may be prudent for potential investors to reconsider their positions in SYNA.

How Does SYNA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.5x 22.9x Currently, Synaptics Inc's forward P/E ratio stands at 27.5x, which is significantly higher than its 5-year median P/E of 22.9x. This indicates that the stock is trading above its historical valuation levels, which aligns with the GF Value™ verdict of being overvalued. The P/E analysis reinforces the notion that SYNA may be overpriced compared to its historical performance, suggesting potential caution for investors.

What Does SYNA's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 5/10 Profitability 6/10 Growth 6/10 Valuation 3/10 Momentum 10/10 The GF Score™ of 74/100 indicates that Synaptics Inc has an above-average ranking, with strengths in momentum (10/10) and moderate scores in profitability and growth (both 6/10). However, the valuation score of 3/10 suggests that the stock is not favorably positioned in terms of its current price compared to its intrinsic value. This discrepancy between the strong momentum and weaker valuation highlights a potential area of concern for investors.

What Are Insiders Doing with SYNA Stock? In the last three months, insider activity at Synaptics Inc indicates a selling trend, with insiders selling $1.3 million worth of stock and no reported purchases. This pattern of selling may signal a lack of confidence in the stock's current valuation among company insiders, which could be a red flag for potential investors. When insiders are selling rather than buying, it often raises questions about the company’s future prospects.

What This Means for Investors Based on the current analysis and the GF Value™ assessment, Synaptics Inc is considered overvalued. The substantial difference between the current price and the GF Value™ indicates potential risks for investors, especially in light of recent insider selling and high valuation multiples. Caution is advised when considering an investment in SYNA at this time.

For the complete analysis, visit the Synaptics Inc SYNA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SYNA's GF Score™?

SYNA has a GF Score™ of 74/100, indicating an above-average ranking based on key financial metrics that have been shown to correlate with higher long-term returns.

Is SYNA overvalued or undervalued?

SYNA is currently overvalued, with a significant difference between its current price of $143.69 and a GF Value™ of $86.96, suggesting potential risks for investors.

What is SYNA's P/E ratio?

SYNA's forward P/E ratio is 27.5x, which is above its 5-year median P/E of 22.9x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

On June 08, 2026, Synaptics Inc SYNA shares rose 10.9% today, bringing the current price to $136.10. This price sits within a 52-week range of $58.28 to $149.11, reflecting significant volatility and growth in the stock over the past year.

GF Value™ verdict: Current price $136.10 vs GF Value™ of $87.26 indicates the stock is 56.0% overvalued.GF Score™: 77/100, which is considered above average and suggests potential for positive long-term returns.Most notable signal: Insider activity shows that insiders sold $2.6M worth of shares in the last 3 months, indicating a lack of buying interest. Is SYNA Overvalued or Undervalued? According to the GF Value™, Synaptics Inc is currently overvalued. The current trading price of $136.10 significantly exceeds the GF Value™ estimate of $87.26. This suggests a margin of safety that is negative, as the stock is trading at a premium of 56.0% over its intrinsic value. The GF Valuation label indicates that SYNA is significantly overvalued, which presents risks for potential investors. High overvaluation may lead to price corrections in the future if earnings do not meet market expectations, thereby putting shareholders at risk of losses.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. In this context, the high valuation relative to the intrinsic value points to the necessity for caution in investment decisions.

How Does SYNA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.8x 22.6x Currently, Synaptics Inc is trading at a forward P/E of 25.8x, which is above its 5-year median P/E of 22.6x. This indicates that the stock is trading at a premium compared to its historical valuation, aligning with the GF Value™ verdict that suggests SYNA is overvalued. The P/E analysis supports the notion of caution regarding the stock's current valuation.

What Does SYNA's GF Score™ Tell Us? Metric Rating GF Score™ 77 Financial Strength 5/10 Profitability 6/10 Growth 6/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 77/100 indicates that Synaptics Inc is positioned for above-average long-term returns. The strongest aspect of the score is the momentum rank of 10/10, suggesting that the stock has experienced significant price increases recently. However, the financial strength rating of 5/10 indicates areas for concern, as it does not suggest robust financial health. Similarly, the valuation rank of 5/10 corroborates the notion that the stock is overvalued according to GF Value™ methodology.

What Are Insiders Doing with SYNA Stock? In the last three months, insiders at Synaptics Inc have sold a total of $2.6 million worth of shares, with no reported buying activity. This trend of selling may suggest that insiders lack confidence in the stock's current valuation or future performance, which could be a signal for potential investors to take note of. The absence of insider buying during this time may reflect a cautious outlook on the company's prospects.

What This Means for Investors Based on the GF Value™ assessment, Synaptics Inc is currently overvalued. The current price of $136.10 is significantly higher than the estimated intrinsic value of $87.26, highlighting potential risks for investors looking at SYNA as a viable investment option.

For the complete analysis, visit the Synaptics Inc SYNA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SYNA's GF Score™?

SYNA has a GF Score™ of 77/100, indicating that it is positioned for above-average long-term returns based on historical performance metrics.

Is SYNA overvalued or undervalued?

According to the GF Value™ assessment, SYNA is overvalued, trading significantly above its estimated intrinsic value of $87.26.

What is SYNA's P/E ratio?

SYNA has a forward P/E ratio of 25.8x, which is higher than its 5-year median P/E of 22.6x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

It has been about a month since the last earnings report for Teradyne (TER - Free Report) . Shares have added about 22.7% in that time frame, outperforming the S&P 500.

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

Teradyne Q1 Earnings Beat Estimates, Revenues Increase Y/YTeradyne delivered first-quarter 2026 non-GAAP earnings of $2.56 per share, up 241.3% year over year and beating the Zacks Consensus Estimate by 21.43%.

Revenue climbed 86.9% from the year-ago quarter to $1.282 billion, beating the Zacks Consensus Estimate by 5.15%.

Results were powered by AI-related demand strength across compute segments, with management estimating about 70% of quarterly revenue tied to AI. The company also set a new companywide quarterly revenue record and said all three business groups posted strong year-over-year growth.

TER Delivers Record Revenue Led by Semiconductor TestSemiconductor Test remained the clear volume driver, notably generating $1.111 billion (86.7% of total revenues) of quarterly revenue. Robotics contributed $91 million (7.1%), while Product Test added $80 million (6.2%), underscoring that demand strength was not confined to a single end market.

The mix highlights how Teradyne’s “wafer-to-AI data center” strategy is translating into broad-based shipment momentum. In particular, the Semiconductor Test scale advantage left the company well positioned to capture elevated test intensity tied to advanced compute and memory deployments.

Teradyne Sees Sequential Margin ExpansionIn the first quarter, Teradyne reported a non-GAAP gross margin of 60.9%, which expanded 40 basis points (bps) year over year.

In the reported quarter, selling and administrative expenses increased 6% year over year to $166.7 million. As a percentage of revenues, selling and marketing expenses were 13%, down 990 bps year over year.

Engineering and development expenses increased 14.7% year over year to $135.6 million. As a percentage of revenues, engineering and development expenses were 10.6%, down 670 bps year over year.

Non-GAAP operating income increased 241.2% year over year to $480.4 million. As a percentage of revenues, the operating margin rose to 37.5% in the first quarter of 2026 from 20.5% in the year-ago quarter.

TER’s Balance Sheet & Cash FlowAs of March 29, 2026, Teradyne’s cash and cash equivalents (including marketable securities) were $245.5 million, down from $321.9 million as of Dec. 31, 2025.

In the reported quarter, net cash provided by operating activities was $265 million.

TER’s 2Q26 OutlookFor the second quarter of 2026, Teradyne expects revenues in the range of $1.150-$1.250 billion. Non-GAAP earnings are projected to be in the range of $1.86-$2.15.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 12.6% due to these changes.

VGM ScoresAt this time, Teradyne has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.

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

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teradyne has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Key Takeaways MU, CRDO and TER qualified from more than 7,685 stocks using profitability screens. Micron posted a 41.5% net profit margin and expects 619.8% earnings growth this year. Credo projects 371.4% earnings growth this year with a 31.8% net profit margin. June trading kicked off on an upbeat note despite the ongoing geopolitical tensions and inflationary pressure, with major stock indexes touching record highs in the first trading session of the month. The positive momentum should encourage astute investors to place their bets on stocks that offer strong upside potential. 

In doing so, investors should focus on companies that deliver strong returns after covering both operating and non-operating expenses. Consequently, businesses with consistent profits tend to be more attractive than loss-making firms.  

To assess profitability, investors often rely on accounting ratios that measure a company’s bottom-line performance. On that note, Micron Technology, Inc. (MU - Free Report) , Credo Technology Group Holding Ltd (CRDO - Free Report) and Teradyne, Inc. (TER - Free Report) stand out as the top profitable picks, supported by strong net income ratios and considerable upside potential.   

Net Income Ratio Explained in Simple Terms The net income ratio indicates a company's profitability. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness at covering operating and non-operating expenses with revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively. 

Using Research Wizard to Find Winning Stocks The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy. 

Zacks Rank Equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well. 

Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability. 

Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy. 

These few parameters have narrowed the universe of more than 7,685 stocks to only 19. 

Here are three of the 19 stocks that qualified for the screening: 

Micron Technology Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 41.5%. The company’s expected earnings growth rate for the current year is 619.8% (read more: 2 AI Memory Stocks Outperforming NVIDIA With Big Upside Ahead). 

Credo Technology  Credo Technology offers high-speed connectivity solutions for Ethernet and PCIe applications worldwide. The 12-month net profit margin of CRDO is 31.8%. The company’s expected earnings growth rate for the current year is 371.4%. 

Teradyne Teradyne develops automated test systems and robotics solutions for global markets. The 12-month net profit margin of TER is 22.6%. The company’s expected earnings growth rate for the current year is 79%.  

An updated edition of the April 14, 2026 article.

A wide moat describes companies with durable competitive advantages that shield them from competitors, much like a moat protects a castle. Popularized by Warren Buffett, this strategy focuses on businesses capable of maintaining strong long-term profitability through strengths such as unique market positions, powerful brand loyalty, cost efficiencies, network effects and regulatory protections.

Among the companies that exemplify wide economic moats are The Estee Lauder Companies Inc. (EL - Free Report) , Teradyne, Inc. (TER - Free Report) , Lam Research Corporation (LRCX - Free Report) and ASML Holding N.V. (ASML - Free Report) . These companies compete in industries with significant barriers to entry, which safeguard their market positions and promote consistent revenue growth by reducing the risk of new competitors.

Wide-moat companies typically derive their advantage from factors such as strong brand recognition, network effects, high customer switching costs, regulatory hurdles and economies of scale. These elements create formidable challenges for new or existing rivals attempting to gain market share. Consequently, these firms often benefit from solid pricing power, stable profit margins, and the capacity to reinvest in their businesses, further reinforcing their long-term competitive edge.

The attraction of investing in wide-moat businesses stems from their ability to deliver steady, long-term returns. In contrast to companies in highly competitive industries where profits are more vulnerable to pricing pressure and intense rivalry, wide-moat firms tend to show greater stability during economic downturns and market turbulence. Their solid market positions and robust balance sheets enable them to weather challenges that might severely impact less well-protected competitors.

Investing in wide-moat companies provides a solid strategy for building long-term wealth, as these businesses typically produce steady cash flows and deliver shareholder value through dividend payments and stock price growth. While no investment is entirely risk-free, companies with strong economic moats provide a level of durability that many investors seek in an ever-changing market. Our Wide Moat Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

Estee Lauder is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. Its strategy centers on strengthening its core brands, including Estee Lauder, Clinique, La Mer and MAC, while sharpening its focus on skincare, which remains the most resilient and margin-accretive segment of beauty.

EL is focused on rebuilding profitability through its expanded Profit Recovery and Growth Plan (“PRGP”), which aims to restore margins while supporting sustainable sales growth. The PRGP is a pivotal initiative designed to address the company's current profitability challenges and drive future growth. It focuses on three primary benefit areas — accelerating margin expansion, fueling growth with targeted investments and simplifying processes to enhance agility.

Estee Lauder’s "Beauty Reimagined" is an ambitious strategic vision designed to restore sustainable sales growth and achieve a solid double-digit adjusted operating margin in the coming years. This initiative aims to position the company as the leading consumer-centric prestige beauty brand. The company is undergoing a significant transformation of its operating model to become leaner, faster and more agile, while taking decisive actions to expand consumer reach, accelerate innovation and increase investments in consumer-facing areas.

Estee Lauder’s online business continues to be a core route to incremental consumers as it rebalances away from slower brick-and-mortar doors. In the third quarter of fiscal 2026, EL reported double-digit online organic sales growth, supported by stronger performance on platforms such as Douyin, Tmall and Coupang, and broader brand reach on Amazon Premium Beauty and TikTok Shop. With online described as close to one-third of global sales and nearing 40% in the United States, continued investment in content, data and omnichannel infrastructure remains central to conversion and personalization over time. EL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Teradyne is positioning itself as a key player in the artificial intelligence (AI)-driven semiconductor testing market. Several factors are expected to drive Teradyne’s core semiconductor test business, driven by growing demand for AI accelerators, networking, memory and power devices. The company’s UltraFLEXplus system is specifically designed for high-performance processors and networking devices, which are critical for AI applications. UltraFLEXplus enables customers to reduce test development times, driving up high-efficiency volume production.

Teradyne’s strong demand for its UltraFLEXplus test platform has been a major growth driver. Over the past nine months, Teradyne has more than doubled its UltraFLEXplus shipments, a testament to both the strength of customer demand and the company’s operational agility. This surge in shipments has been achieved while maintaining 12-16 week lead times, reflecting Teradyne’s effective multi-source manufacturing strategy. The platform’s flexibility is shown by its role in introducing new products, like the Photon 100. In March 2026, Teradyne announced the launch of the Photon 100, an integrated opto-electric test platform built on UltraFLEXplus.

Acquisition has also played an important role in expanding TER's footprint in the semiconductor test market. In April 2026, Teradyne acquired TestInsight, a provider of semiconductor test development, validation, and conversion software, to strengthen its automated test equipment capabilities. The deal enhances Teradyne’s ability to support AI and data center device development by accelerating test solution creation and reducing time to market. The acquisition helps customers achieve earlier test readiness amid increasing chip complexity. TestInsight will continue supporting existing customers and maintaining its partner ecosystem. TER currently sports a Zacks Rank #1.

Lam Research benefits from its leadership position in wafer fabrication equipment, specializing in etch and deposition technologies critical to semiconductor manufacturing. Its deep expertise, long-term customer relationships and the enormous capital requirements of its industry form a powerful competitive moat. Technology inflections in the semiconductor industry, including 3D device scaling, multiple patterning, process flow, and advanced packaging chip integration, are expected to continue driving sustainable growth and increasing LRCX’s served market for its products and services in the deposition, etch and clean businesses.

Lam Research has high exposure to the memory segment, which is likely to see tremendous growth in the long run. The semiconductor memory market is being driven by the growing proliferation of AI, Machine Learning, Blockchain, cloud computing, big data, mobile devices and the Internet of Things. The huge explosion of data as a result of these advanced technologies requires it to be stored, processed and analyzed to increase efficiency and drive the growth of the business. This has been leading to increased demand for memory chips. In addition, the increasing adoption of semiconductor components across various industries, including automotive, consumer electronics, and IT & telecom, still acts as a tailwind.

LRCX is witnessing strong momentum in wafer fabrication equipment (WFE) demand as accelerating AI infrastructure investments drive higher semiconductor capital spending across memory, foundry and logic markets. During the third-quarter fiscal 2026 earnings call, the company raised its 2026 WFE outlook to $140 billion from the prior estimate of $135 billion, citing stronger customer spending trends and continued hyperscale AI infrastructure expansion. Rising WFE spending is driving Lam Research’s financial performance.

LRCX’s biggest strength lies in etch and deposition intensity tied to advanced AI chips and high-bandwidth memory. With AI-driven investments accelerating, Lam Research’s leading position in etch and deposition makes it a key beneficiary of the ongoing semiconductor spending cycle. These factors position this Zacks Rank #2 (Buy) stock as a key enabler of next-generation AI chips.

ASML Holding, a vital supplier to the semiconductor industry, possesses one of the strongest technological moats in the world. Its technological leadership in lithography equipment makes it indispensable to the semiconductor industry. The company maintains a near-monopoly on extreme ultraviolet (EUV) lithography, which is essential for producing advanced chips at 3nm and below. Its EUV systems are crucial for leading chipmakers, positioning ASML as a key enabler of cutting-edge semiconductor manufacturing. The company’s technological superiority ensures high barriers to entry, giving it a competitive moat.

ASML Holding’s High-NA EUV technology represents the next frontier in chip manufacturing. Designed for sub-2nm nodes, these advanced systems will be critical for the industry’s future. As chipmakers ramp up production of smaller, more powerful chips, ASML’s High-NA EUV tools will play a pivotal role, driving sustained demand. With EUV technology being essential for advanced semiconductor fabrication, ASML Holding’s dominance remains intact, supporting its long-term growth outlook.

ASML Holding, a Zacks Rank #2 stock, is well-positioned to capitalize on the AI revolution, which is driving massive demand for advanced semiconductors. With AI workloads requiring cutting-edge graphics processing units (GPUs), high-bandwidth memory and AI accelerators, the demand for smaller and more powerful chips is rising. This trend plays directly into ASML’s hands, as its EUV and High-NA EUV machines are vital for manufacturing these advanced chips. As cloud providers, data centers and tech giants expand their AI infrastructure, ASML Holding’s lithography tools will be in greater demand.

NORTH READING, Mass.--(BUSINESS WIRE)---- $TER #semiconductor--Teradyne announces an integrated test cell solution for known good device screening for data center devices, developed in collaboration with TEL.

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Key Takeaways Teradyne is seeing strong semiconductor test growth as AI demand reached nearly 70% of Q1 revenues. Teradyne's Photon 100 targets AI data centers and supports a $300M-$700M annual TAM opportunity. Teradyne expects Q2 2026 revenues between $1.150 billion and $1.250 billion amid AI demand strength. Teradyne (TER - Free Report) is benefiting from the growing demand for AI infrastructure, which is driving robust growth across its semiconductor test division. Growth is largely attributed to the accelerating demand for AI and data center technologies, with AI-related demand accounting for nearly 70% of Teradyne’s revenues in the first quarter of 2026, up from about 60% in the previous quarter.

The company’s product innovation is supporting its growth. The company’s introduction, like the Photon 100 platform for silicon photonics and co-packaged optics testing and the Omnyx production board test platform, addresses critical needs in AI data center build-outs. The Photon 100 is expected to contribute to a TAM expansion opportunity that could reach $300 million to $700 million per year over the midterm.

Further expanding its portfolio, Teradyne recently announced a known good device screening test cell solution. This solution was developed in partnership with Tokyo Electron (TEL) for AI and data center semiconductor applications. It combines Teradyne’s UltraFLEXplus test platform with TEL’s Prexa SDP prober. This combination allows for high-quality device screening across advanced packaging flows.

The solution is designed for chiplet-based 2.5D and 3D architectures. It helps improve yield, boost reliability and lower integration risks in high-volume manufacturing. Its open ecosystem architecture provides flexibility for integration with various probe cards, manipulators and interface technologies.

Teradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth. For the second quarter of 2026, Teradyne expects revenues in the range of $1.150-$1.250 billion.

Teradyne Suffers From Stiff CompetitionTeradyne is facing stiff competition from companies such as Advantest Corporation (ATEYY - Free Report) and Cohu (COHU - Free Report) . Both Advantest and Cohu are expanding their footprint in the AI space.

In April 2026, Advantest launched Pin Scale 5000B for its V93000 EXA Scale Platform, boosting vector memory and high-bandwidth testing up to 5 Gbps for advanced AI and HPC chips. The solution improves chiplet testing, structural coverage, core-level visibility and test efficiency while remaining compatible with Pin Scale 5000.

In May 2026, Cohu secured approximately $5 million in orders for its DiamondX semiconductor test platform from a leading chip manufacturer to support the development and production of next-generation gallium nitride (GaN) power devices for AI data center power architectures.

TER’s Share Price Performance, Valuation, and EstimatesTeradyne shares have surged 90.8% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 17.2% and the Zacks Electronics - Miscellaneous Products increase of 52.9%.

TER Stock Performance
Image Source: Zacks Investment Research

TER stock is trading at a premium with a forward 12-month Price/Sales of 11.73X compared with the Electronics - Miscellaneous Products industry’s 10.29X. TER has a Value Score of F.

TER's Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $7.09 per share, which has been unchanged over the past 30 days. This suggests 79.04% year-over-year growth.

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

NOVI, Mich.--(BUSINESS WIRE)---- $TER #AI--Moving past conceptual hype, the company will showcase deployable physical AI solutions - from electronics manufacturing to logistics at Automate 2026.

Rocket Lab, Nebius, CoreWeave Stocks Jump After Major Nasdaq-100 Shakeup Summary

Several technology and growth companies rallied after securing spots in the Nasdaq-100 index

Nasdaq (NDAQ) said it will add CoreWeave CRWV , Nebius NBIS , Rocket Lab RKLB , Astera Labs ALAB and Teradyne (TER) to the Nasdaq-100 index, a move that is likely to prompt fresh buying from index-tracking funds, according to a Wednesday exchange notice.

The changes will take effect before the market opens on June 22 as part of Nasdaq's quarterly rebalance. The index, which holds 100 of the largest non-financial companies listed on the exchange, is reviewed regularly to keep its membership in line with eligibility rules.

Shares of CoreWeave, Nebius, Rocket Lab, Astera Labs and Teradyne jumped in after-hours trading after the news. CoreWeave edged higher 4%, while Nebius climbed about 5%, Rocket Lab rose nearly 9%, Astera Labs surged more than 11% and Teradyne added about 10%.

Companies leaving the Nasdaq-100 are Charter Communications, Cognizant Technology, Insmed, Verisk Analytics and Zscaler. Being added to the Nasdaq-100 can lift trading volume because funds and ETFs that track Nasdaq (NDAQ) often adjust holdings to match the new lineup.

Howmet (HWM - Free Report) reported $2.31 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.1%. EPS of $0.86 for the same period compares to $0.86 a year ago.

The reported revenue represents a surprise of +3.41% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $1.11, the EPS surprise was -22.4%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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

Total Sales- Engine Products: $1.26 billion versus the two-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of +25.8%.Total Sales- Fastening Systems: $471 million versus $470.99 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.3% change.Total Sales- Engineered Structures: $302 million versus $295.78 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6% change.End Market Revenue- Commercial Transportation: $346 million versus $317.6 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +13.4% change.End Market Revenue- Aerospace- Commercial: $1.22 billion versus $1.19 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +19.6% change.End Market Revenue- Aerospace- Defense: $366 million versus $369.38 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.Total Sales- Forged Wheels: $295 million compared to the $264.6 million average estimate based on two analysts. The reported number represents a change of +17.1% year over year.Adjusted EBITDA- Engine Products: $458 million versus $419.85 million estimated by two analysts on average.Adjusted EBITDA- Forged Wheels: $90 million versus the two-analyst average estimate of $75.41 million.Adjusted EBITDA- Engineered Structures: $66 million versus $65.08 million estimated by two analysts on average.Adjusted EBITDA- Fastening Systems: $150 million versus $148.85 million estimated by two analysts on average.View all Key Company Metrics for Howmet here>>>

Shares of Howmet have returned +7.3% over the past month versus the Zacks S&P 500 composite's +11% 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.

, /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) announced today that John C. Plant, Executive Chairman and Chief Executive Officer, will speak at Bernstein's 42nd Annual Strategic Decisions Conference (SDC) on Wednesday, May 27th, 2026, at 8:00 AM ET.

A real-time webcast of the event will be available on the "Investors/Events and Presentations" section of www.howmet.com, where a webcast replay will be available for 90 days following the presentation.

About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.

Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.

SOURCE Howmet Aerospace Inc.

Key Takeaways Howmet commercial aerospace revenues rose 20% in Q1, accounting for 53% of sales.HWM Engine Products revenues jumped 29% on aerospace and gas turbine market strength.Boeing and Airbus production growth is supporting continued demand for Howmet products. The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is the persistent strength in its commercial aerospace market. In the first quarter of 2026, the company’s revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion), which accounted for 53% of its quarterly sales. Strong air travel activities have been positive for the company, as the increased usage of aircraft has driven spending on parts and products that it provides.

This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. Driven by strength across the commercial and defense aerospace markets, revenues from the Fastening Systems segment also increased 14% year over year.

Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, HWM is poised to maintain strong demand momentum in the quarters ahead.

HWM’s Peers in the Commercial Aerospace MarketGE Aerospace (GE - Free Report) is benefiting from the solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. Revenues from the company’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines.

Improving commercial air passenger traffic has been benefiting Textron Inc.’s (TXT - Free Report) Aviation business unit. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting first quarter) for the Aviation segment.

HWM's Price Performance, Valuation and EstimatesShares of Howmet have gained 9.2% in the past three months against the industry’s decline of 11.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 55.36X, above the industry’s average of 32.24X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NVIDIA is benefiting from sustained AI infrastructure demand despite higher rates and slower growth.NVDA reported Q4 data-center revenues of $62.3B, up 75% year over year amid AI expansion.Howmet Aerospace raised 2026 guidance as defense spending and aircraft demand strengthen backlogs. Wall Street entered the second quarter of 2026 expecting rate cuts, but by late April and especially after the May inflation data, those expectations have weakened materially. Inflation has remained sticky, labor markets are still resilient and geopolitical tensions have pushed energy prices higher again.

As a result, investors are no longer chasing every growth theme indiscriminately. Capital is now concentrated in sectors that can either sustain earnings growth in a high-rate environment or benefit directly from inflationary and geopolitical pressures.

Against this backdrop, two sectors have become the primary focus of investors — AI-driven Technology and Energy/Defense with stocks like NVIDIA (NVDA - Free Report) and Howmet Aerospace (HWM - Free Report) attracting strong institutional inflows due to earnings visibility, pricing power and long-term demand resilience. Let’s delve deeper.

Sticky CPI, Stable Labor Market Drive Q2 Sector FocusAccording to the U.S. Bureau of Labor Statistics (BLS), consumer inflation accelerated in April 2026, with headline CPI (Consumer Price Index) rising 3.8% year over year compared with 3.3% in March. Energy inflation surged 17.9%, becoming one of the biggest factors behind renewed pricing pressure.

At the same time, the labor market has remained firmer than expected. The U.S. economy added 115,000 jobs in April, significantly above economists’ consensus forecasts of roughly 62,000 (Reuters), while unemployment held steady at 4.3%. March payrolls were also revised upward to 185,000. Although hiring has moderated from prior years, labor conditions remain sufficiently stable to prevent the Fed from pivoting aggressively toward monetary easing.

Financial markets reacted sharply after April inflation came in hotter than Reuters’ consensus estimates. U.S. headline CPI rose 3.8% year over year versus economists’ expectations of 3.7%, reinforcing concerns that the Federal Reserve may keep interest rates elevated for longer.

2 AI and Defense Stocks Gaining Focus in Q2
Image Source: Zacks Investment Research

AI-focused technologyremains one of the strongest themes in the second quarter of 2026, with NVIDIA continuing to attract investors seeking earnings resilience in a volatile macro backdrop. Unlike many cyclical technology companies, NVIDIA is benefiting from structural AI spending that remains largely unaffected by elevated interest rates and slowing economic growth. Hyperscalers, sovereign governments and enterprises are still aggressively expanding AI infrastructure, creating sustained demand for advanced GPUs and AI networking systems.

In its last-reported fiscal fourth-quarter 2026 release, NVIDIA reported data-center revenues of $62.3 billion, up 75% year over year. Management also highlighted growing adoption of agentic AI and introduced its next-generation Rubin AI platform, supporting long-term demand visibility. Strong partnerships with Microsoft, Amazon, Meta and OpenAI further position NVIDIA as a direct beneficiary of ongoing global AI-capex expansion.

This Zacks Rank #2 (Buy) stock has gained 28.5% since April 1. In the second quarter of fiscal 2027 (ending July 2026), the company is projected to report earnings growth of 82.9% over the year-ago reported number.

Image Source: Zacks Investment Research

Defense and Energy stocks are also gaining momentum in the April to June quarter, with Howmet Aerospace emerging as a strong beneficiary of rising global aircraft and defense demand. Persistent geopolitical tensions, expanding defense budgets and accelerating commercial-aircraft production have improved long-term order visibility across the aerospace supply chain. Unlike many industrial companies exposed to weaker consumer spending, Howmet benefits from long-cycle aerospace programs and sustained demand for high-performance engine components and fastening systems.

In its first-quarter 2026 earnings release, Howmet raised its full-year guidance after reporting strong growth across both commercial aerospace and defense markets. The company expects continued strength in jet-engine demand and robust aerospace backlog trends, indicating that defense modernization and aircraft-production expansion could continue supporting earnings growth through 2026.

This Zacks Rank #2 stock has gained 14.2% since April 1. In the second quarter of fiscal 2026 (ending June 2026), the company is projected to report earnings growth of 30.8% over the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Image Source: Zacks Investment Research

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Howmet (HWM - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this maker of engineered products for the aerospace and other industries is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Howmet is 40%, investors should actually focus on the projected growth. The company's EPS is expected to grow 29% this year, crushing the industry average, which calls for EPS growth of 12.5%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.3%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.2%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Howmet. The Zacks Consensus Estimate for the current year has surged 9.9% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Howmet a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

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

This combination indicates that Howmet is a potential outperformer and a solid choice for growth investors.

Howmet Aerospace (HWM) is upgraded to Buy as earnings power and growth momentum strengthen, despite a demanding valuation. Q1 2026 saw revenue up 19% y/y, adj. EBITDA up 32% y/y, and adj. EPS up 42% y/y, driven by commercial aero spares and IGT. Commercial aero spares now comprise a larger, higher-margin revenue share, providing more durable growth less tied to new aircraft production.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Howmet (HWM - Free Report) .

Howmet currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.

Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79.2% and 4.2% of all recommendations.

Brokerage Recommendation Trends for HWM

Check price target & stock forecast for Howmet here>>>

While the ABR calls for buying Howmet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is HWM a Good Investment?Looking at the earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 10.4% over the past month to $4.96.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.

Key Takeaways Howmet's defense aerospace revenues increased 10% year over year in first-quarter 2026.HWM's Engine Products segment posted 29% revenue growth, aided by defense aerospace demand.Strong defense funding and military-aircraft programs support Howmet's growth outlook. Howmet Aerospace Inc. (HWM - Free Report) is benefiting from strong momentum in its defense aerospace market. After experiencing growth of 21% in 2025, revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.

This solid momentum is significantly benefiting Howmet’s Engine Products segment, which reported 29% year-over-year revenue growth in the first quarter. With a solid pipeline of military-aircraft programs and a robust defense budget, HWM is poised to maintain strong demand momentum in the quarters ahead.

It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.

The robust military funding enhances Howmet’s ability to secure new contracts. Backed by favorable geopolitical developments and consistent government support, the company’s defense aerospace market is well-placed for growth in the quarters ahead.

Segment Snapshot of HWM’s PeersHoneywell International Inc. (HON - Free Report) is benefiting from strong momentum in its defense and space business. In the first quarter of 2026, organic sales from Honeywell’s defense and space business increased 4% on a year-over-year basis. The increase in Honeywell’s revenues was fueled by stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate.

GE Aerospace (GE - Free Report) is benefiting from solid momentum in its Defense & Propulsion Technologies segment. In first-quarter 2026, GE Aerospace clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in the first quarter.

HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 21.3% in the year-to-date period against the industry’s decline of 3.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.31X, above the industry’s average of 32.07X. Howmet carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 9% over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) is sitting on a 34% one-year gain heading into June, with shares at roughly $235 and $13.5 billion in net assets. Two events in the next four weeks will largely decide whether ITA keeps running: the Pentagon’s FY2027 budget moving through Congress, and the June 29 Honeywell Aerospace spin-off that reshuffles the fund’s holdings. Both belong on the radar of any ITA holder.

What the fund actually owns ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index at a 0.38% net expense ratio. GE Aerospace (NYSE:GE | GE Price Prediction) alone is 19% of net assets, with RTX at roughly 17% and Boeing (NYSE:BA) at nearly 9%. That top trio is roughly 44% of the portfolio. Adding General Dynamics and Lockheed Martin lifts the top five to roughly 54%. When people buy ITA, they are really buying GE, RTX, and Boeing, with a defense overlay.

The macro factor: the $1.45 trillion FY2027 budget The single biggest driver over the next 12 months is the $1.45 trillion FY2027 Department of War budget request, a roughly 42% increase over the FY2026 enacted level. Procurement is set to jump from $163.6 billion to $257.6 billion, with RDT&E moving to $218.8 billion. The request specifically funds $18 billion for Golden Dome and over $74 billion for drone and counter-drone systems, plus next-generation programs like the F-47 and B-21.

Watch appropriations markup language and any continuing resolution that delays procurement obligations past October 1. The data lives on the House and Senate Armed Services Committee pages and on Comptroller.defense.gov. Check monthly through summer markup, then weekly through September. Lockheed already telegraphed how this flows through, signing multi-year framework agreements for Patriot, THAAD, and PrSM that target 3 to 4 times current production rates. If the budget passes near the request, ITA’s defense primes get multi-year visibility. A CR that runs deep into FY2027 would extend that visibility.

The fund-specific factor: the June 29 Honeywell split Honeywell completes its aerospace spin-off on June 29, 2026, creating a separately traded Honeywell Aerospace under the ticker HONA. Honeywell does not currently appear in ITA’s March 31 snapshot, but the new pure-play HONA is a near-certain index addition at the next reconstitution. The Aerospace Technologies segment generated $4.32 billion in Q1 revenue at a 1.1x book-to-bill, so this is a meaningful new constituent.

For holders, watch the iShares website for the index methodology notice and the post-spin holdings file, typically posted within two trading days of an event. If HONA prices weakly out of the gate, ITA’s NAV absorbs that on the add. The opportunity is that a clean aerospace pure-play arrives just as GE Aerospace is guiding FY2026 EPS to $7.10 to $7.40 on a $170 billion commercial services backlog, validating the aftermarket thesis HONA will be sold on.

The supporting cast and one warning Howmet Aerospace (NYSE:HWM) raised FY2026 guidance to $4.88 to $5.00 in adjusted EPS after Engine Products grew 29%, though CEO John Plant flagged Iranian-conflict risk to engine spares demand. General Dynamics reported a 2-to-1 book-to-bill and $188.4 billion in estimated contract value. The warning sign is Lockheed: $125 million in F-16 charges compressed segment margins to about 10% from nearly 12%, and the stock is down 5% since earnings while the S&P rose nearly 7%. If C-130, CH-53K, or Seahawk charges repeat in Q2, that roughly 4.58% LMT position becomes a persistent drag.

What to watch in one line If Congress passes FY2027 defense appropriations near the $1.45 trillion request before October 1, ITA’s defense weighting carries another year of upside. The fund-specific signal is the post-June 29 holdings file: confirm HONA’s weight and watch whether GE Aerospace stays above 18%, because that single position drives the index more than any macro headline.

Posted by Defense World Staff on Apr 7th, 2026

Huron Consulting Group Inc. (NASDAQ:HURN – Get Free Report) Director Ekta Singh-Bushell sold 126 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $126.93, for a total value of $15,993.18. Following the transaction, the director owned 14,089 shares of the company’s stock, valued at approximately $1,788,316.77. This trade represents a 0.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Huron Consulting Group Price Performance HURN stock opened at $130.37 on Tuesday. The stock has a 50-day moving average price of $139.06 and a two-hundred day moving average price of $155.96. The stock has a market cap of $2.16 billion, a PE ratio of 22.29 and a beta of 0.19. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.93. Huron Consulting Group Inc. has a 1 year low of $116.12 and a 1 year high of $186.77.

Huron Consulting Group (NASDAQ:HURN – Get Free Report) last released its earnings results on Tuesday, February 24th. The business services provider reported $2.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.94 by $0.23. Huron Consulting Group had a return on equity of 28.20% and a net margin of 6.18%.The firm had revenue of $441.96 million during the quarter, compared to analysts’ expectations of $433.57 million. During the same quarter in the prior year, the company earned $1.90 EPS. The company’s revenue was up 10.7% on a year-over-year basis. Huron Consulting Group has set its FY 2026 guidance at 8.350-9.150 EPS. Equities analysts forecast that Huron Consulting Group Inc. will post 6.1 EPS for the current fiscal year.

Analyst Ratings Changes A number of equities analysts have recently commented on HURN shares. Wedbush increased their price objective on shares of Huron Consulting Group from $165.00 to $200.00 and gave the stock an “outperform” rating in a research note on Monday, January 12th. Weiss Ratings restated a “buy (b)” rating on shares of Huron Consulting Group in a research note on Thursday, January 22nd. Benchmark increased their price objective on shares of Huron Consulting Group from $180.00 to $215.00 and gave the stock a “buy” rating in a research note on Wednesday, December 24th. Wall Street Zen downgraded shares of Huron Consulting Group from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. Finally, Barrington Research raised their target price on shares of Huron Consulting Group from $190.00 to $207.00 and gave the company an “outperform” rating in a research note on Monday, January 5th. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $215.50.

View Our Latest Stock Analysis on Huron Consulting Group

Institutional Investors Weigh In On Huron Consulting Group Several hedge funds have recently bought and sold shares of the stock. CWM LLC lifted its position in Huron Consulting Group by 14.9% during the fourth quarter. CWM LLC now owns 464 shares of the business services provider’s stock worth $80,000 after acquiring an additional 60 shares during the last quarter. California State Teachers Retirement System lifted its position in Huron Consulting Group by 0.5% during the second quarter. California State Teachers Retirement System now owns 16,396 shares of the business services provider’s stock worth $2,255,000 after acquiring an additional 76 shares during the last quarter. Richardson Financial Services Inc. lifted its position in Huron Consulting Group by 68.1% during the third quarter. Richardson Financial Services Inc. now owns 195 shares of the business services provider’s stock worth $29,000 after acquiring an additional 79 shares during the last quarter. Wedbush Securities Inc. lifted its position in Huron Consulting Group by 4.8% during the fourth quarter. Wedbush Securities Inc. now owns 1,861 shares of the business services provider’s stock worth $322,000 after acquiring an additional 85 shares during the last quarter. Finally, Truist Financial Corp lifted its position in Huron Consulting Group by 1.4% during the fourth quarter. Truist Financial Corp now owns 6,485 shares of the business services provider’s stock worth $1,121,000 after acquiring an additional 87 shares during the last quarter. 93.90% of the stock is currently owned by institutional investors and hedge funds.

Huron Consulting Group Company Profile (Get Free Report)

Huron Consulting Group (NASDAQ:HURN) is a global professional services firm that advises organizations across a range of industries on strategy, operations and technology. Founded in 2002 and headquartered in Chicago, the company helps clients address complex business challenges such as performance improvement, digital transformation and organizational change. Huron’s consultants work alongside executive leadership teams to develop and implement tailored solutions that drive growth, increase efficiency and manage risk.

Huron’s service offerings encompass business and financial advisory, healthcare performance improvement, life sciences consulting, higher education and research lifecycle support, as well as legal and regulatory consulting.

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