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Ready Capital's Series E Preferreds trade at a 54% discount to their redemption value, offering a 14% current yield. RC's common shares have suffered severe losses and dividend cuts, making them unattractive for income investors despite a steep 79% discount to book value. RC maintains sufficient liquidity, with $207.8 million in cash and $8 million in annual preferred coupon obligations, supporting continued preferred payments.

May 01, 2026 16:15 ET  | Source: Ready Capital Corporation

NEW YORK, May 01, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (the “Company”) today announced that the Company will release its first quarter 2026 financial results after the New York Stock Exchange closes on Thursday, May 7, 2026. Management will host a webcast and conference call on Friday, May 8, 2026 at 8:30 a.m. Eastern Time to provide a general business update and discuss the financial results for the quarter ended March 31, 2026. 

Webcast:
The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

Dial-in:
The conference call can be accessed by dialing 877-407-0792 (domestic) or 201-689-8263 (international).

Replay:
A replay of the call will also be available on the Company’s website approximately two hours after the live call through May 22, 2026.  To access the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international). The replay pin number is 13759490.

About Ready Capital Corporation

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs over 400 professionals nationwide.

Contact
Investor Relations
Ready Capital Corporation
212-257-4666
[email protected] 

Ready Capital (RC - Free Report) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -153.85%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.11 per share when it actually produced a loss of $0.09, delivering a surprise of +18.18%.

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

Ready Capital, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of -$15.1 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 217%. This compares to year-ago revenues of $14.5 million. The company has not been able to beat consensus revenue estimates 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.

Ready Capital shares have lost about 6.4% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Ready Capital?While Ready Capital 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 Ready Capital 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 -$0.12 on $13.93 million in revenues for the coming quarter and -$0.47 on $53.48 million 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, REIT and Equity Trust is currently in the bottom 37% 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.

Another stock from the broader Zacks Finance sector, Nu Holdings Ltd. (NU - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Nu Holdings Ltd.'s revenues are expected to be $4.97 billion, up 53% from the year-ago quarter.

Norwegian Cruise Line Cuts Outlook as Headwinds BuildReady Capital NYSE: RC said its first-quarter 2026 results reflected continued pressure from a balance sheet repositioning plan aimed at raising liquidity, reducing leverage and addressing underperforming commercial real estate assets.

Chief Executive Officer Thomas Capasse said the company has generated $1.4 billion in cash year to date from loan sales and liquidations, allowing it to pay down more than $1.1 billion of warehouse debt and create $270 million of net liquidity. That liquidity was used in part to retire $184 million of corporate debt.

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Comparing 3 Cruise Stocks: Which Has the Most Upside in 2026?Capasse said the company’s liquidity plan, first outlined in the fourth quarter of 2025, is expected to span four quarters. Ready Capital began the year with $650 million of corporate debt across four 2026 maturities. It retired a $117 million, 5.75% senior unsecured bond in February and a $67 million, 6.2% senior unsecured bond in April, leaving $450 million of maturities due in the fourth quarter of 2026.

“We are continuing to resolve non- and sub-performing positions to reduce earnings drag and facilitate recycling into current market-yielding opportunities,” Capasse said. He added that Ready Capital is moving toward “a lower leverage, more capital-efficient platform” intended to support long-term earnings growth.

Loan sales and runoff drive liquidity plan 5 Baby Boomer Stock Favorites Now Trading at a DiscountCapasse said Ready Capital’s year-to-date liquidity has come from two primary sources: the sale of 48 loans with approximately $1 billion of unpaid principal balance across four transactions, producing $177 million of net liquidity, and $550 million of portfolio runoff, producing $93 million of net liquidity. The loan sales consisted of 66% performing loans and 30% non- and sub-performing loans, according to management.

Looking ahead, Capasse said the company’s plan contemplates an additional $400 million of liquidity from the sale and runoff of $2 billion to $2.5 billion of commercial real estate loans and real estate owned assets through year-end. He said current projections indicate those actions, together with current liquidity, should be sufficient to retire the remaining 2026 maturities and meet future cash flow needs.

After completion of the liquidity plan and repayment of fourth-quarter debt maturities, Ready Capital expects its remaining legacy CRE portfolio to total about $2 billion. Capasse said that portfolio is expected to include $800 million to $900 million of sub- and non-performing loans and REO assets. Management believes those assets have better net present value through “aggressive asset management strategies” rather than sales at current market discounts.

Capasse said that sub-portfolio currently creates a quarterly earnings drag of approximately $0.06 per share and cash outflows of $9.3 million per quarter. He said the company expects leverage to stabilize around 2.5 times after the repositioning plan is completed.

First-quarter losses reflect asset sales, reserves and lower revenue Chief Financial Officer Andrew Ahlborn said Ready Capital reported a GAAP loss from continuing operations of $1.25 per common share for the first quarter. Distributable earnings were a loss of $1.00 per common share, or a loss of $0.33 per common share excluding realized losses on asset sales.

Book value per share was $7.43 at quarter-end, down from $8.79 at year-end. Ahlborn said the decline was primarily due to a $0.42 per share loss on loan sales settled during the quarter, a $0.47 per share loss from additional CECL reserves and valuation allowances, and a $0.36 per share loss from operations.

Recurring revenue was $16.2 million, compared with $41.5 million in the prior quarter. Ahlborn said the decline was driven by a $28.5 million reduction in net interest income, partly offset by a $3 million increase in other income. The lower net interest income reflected the liquidation of approximately $1.8 billion of loans over the past two quarters, reduced cash receipts on nonaccrual loans and timing differences between asset liquidations and corporate debt paydowns.

“We expect net interest income to be negative as we move through this transition period,” Ahlborn said, citing expected improvement from reductions in nonaccrual loans and REO, lower asset-level and corporate debt financing, and the recycling of capital into market yields.

Operating expenses increased $7.8 million from the prior quarter to $67.7 million. Ahlborn said the increase was primarily due to $6.7 million of non-recurring advance payments made to servicers after the collapse of the company’s remaining CLOs and a $3.9 million decrease in tax benefit.

Ready Capital ended the quarter with $200 million of liquidity and $730 million of unencumbered assets. Ahlborn said first-quarter liability actions included collapsing three CLOs totaling $900 million of collateral, adding a new $500 million CRE warehouse facility and renewing two additional facilities. Current total leverage was 3 times.

Company plans narrower business focus Capasse said Ready Capital intends to simplify its business model through greater integration with external manager Waterfall Asset Management and a renewed focus on two core areas: middle-market CRE debt investing and SBA 7(a) lending.

During a period of constrained investing, Capasse said the company can generate fee income in place of net interest margin by originating loans for Waterfall, where it has funded $172 million year to date, and for third parties, including through a new $1 billion flow arrangement.

Capasse said Ready Capital expects to focus future investment activity on CRE sectors where it sees the best relative value, with average investment size expected to double from its historical average of $17 million. He also said the company expects its financing strategy to be “more opportunistic and less securitization driven,” referring later in the call to CRE CLOs rather than SBA securitizations.

Ready Capital also plans to increase capital allocation to its small business lending platform, which Capasse said is expected to represent 20% of company capital going forward. He said the platform has historically provided 300 to 500 basis points of core return on equity alongside CRE net interest margin.

SBA securitization expected to support second-half production Capasse said lower SBA 7(a) originations in the first quarter reflected the prioritization of capital toward debt repayment, which limited new SBA deployment to existing warehouse capacity. He said the pending launch of a $158 million SBA 7(a) securitization is expected to generate capacity for $500 million of incremental go-forward volume.

Management expects SBA production in the second half of the year to move toward historical levels. Capasse cited 2024 production of $1.1 billion.

In response to a question from KBW’s Jade Rahmani about deferred tax assets, Ahlborn said Ready Capital had a deferred tax asset of $201.6 million and a tax receivable of $16.7 million. He said management believes the deferred tax asset has value, while acknowledging its magnitude, and pointed to expected growth in the SBA business as warehouse capacity opens.

Management addresses St. Regis asset and credit trends Capasse also provided an update on the St. Regis property, which he said remains Ready Capital’s largest single equity allocation at 18% of stockholders’ equity. The company has sold 43 condominium units and has four additional units under contract, which would bring the sellout to 36% of the 132 total units.

The average selling price for the 32 condos sold year to date was $745 per square foot, compared with $900 per square foot for all condos sold. Capasse described the pricing as a deliberate strategy to build momentum toward a full sellout at higher average prices. Hotel occupancy rose 5% year over year to 46%, while average daily rate increased 1% to $482 and revenue per available room rose 13% to $221.

During the question-and-answer session, Ladenburg Thalmann analyst Christopher Nolan asked about an increase in non-performing assets. Capasse said traditional metrics such as loans 60-plus days delinquent are becoming less central as Ready Capital executes asset sales and asset-management strategies intended to improve sale prices. Chief Credit Officer Dominick Scali said part of the increase reflected credit migration, but the majority was tied to a denominator effect as the company sold performing loans.

Ahlborn said Ready Capital recorded an additional provision of just under $71 million in the quarter. He said future reserve changes could include marginal increases on remaining non- and sub-performing loans, but the larger remaining effect is expected to be tied to execution of planned sales in the $2 billion to $2.5 billion portfolio.

When asked about the company’s eventual size, Ahlborn said total assets, currently about $6.3 billion, are expected to decline closer to $4 billion after the planned loan portfolio reduction.

About Ready Capital NYSE: RCReady Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.

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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What happenedAccording to a recent SEC filing dated February 17, 2026, Concorde Financial Corp disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it sold out its entire stake in Howard Hughes Holdings (HHH +0.99%), liquidating 52,047 shares in an estimated $4.28 million trade based on quarterly average pricing.

What else to knowConcorde Financial Corp sold out its entire Howard Hughes Holdings stake. As of February 16, 2026, shares of Howard Hughes Holdings were priced at $82.15, up 9.5% over the past year, underperforming the S&P 500 by 2.3 percentage points. The position was previously 2.4% of the fund’s assets under management as of the prior quarter.

Top holdings after the filing:

NYSE:JPM: $9.16 million (7.1% of AUM)NYSE:XOM: $8.03 million (6.2% of AUM)NASDAQ:EXE: $7.45 million (5.8% of AUM)NYSE:ET: $7.39 million (5.7% of AUM)NYSE:ABBV: $7.04 million (5.5% of AUM)Company overviewMetricValuePrice (as of market close February 13, 2026)$82.15Revenue (TTM)$1.47 billionNet income (TTM)$123.9 million1-year price change8.6%Company snapshotHoward Hughes Holdings develops, owns, and manages a diversified portfolio of real estate assets, including retail, office, multifamily, and master planned communities; also operates landmark properties in New York City’s Seaport district.

It generates revenue primarily through property leasing, land sales, and development fees, leveraging long-term community development and recurring rental income streams.

Howard Hughes Holdings serves homebuilders, commercial tenants, and residential buyers in major U.S. growth markets such as Las Vegas, Houston, and Phoenix.

What this transaction means for investorsHoward Hughes Holdings is built around a long-cycle real estate development model. The company controls large land positions in fast-growing markets such as Las Vegas, Houston, and Phoenix, where population growth and housing demand can increase land values over time before much of that land is fully developed.

Howard Hughes Holdings monetizes its communities in stages. It starts by selling residential land parcels to homebuilders, then introduces retail, office, and mixed-use properties as population and demand grow. This approach provides revenue from land sales and long-term cash flow as communities require shopping, workplaces, and entertainment options.

For investors, the key question is whether Howard Hughes can consistently convert land ownership into higher land values and stable commercial income. When housing demand and migration trends are strong, the model can generate long-term value. However, results may be more cyclical and less predictable than those of stabilized property owners, since outcomes will also depend on development timing, homebuilder demand, and local economic conditions.

JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Howard Hughes, and JPMorgan Chase. The Motley Fool has a disclosure policy.

THE WOODLANDS, Texas, April 13, 2026 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (“the Company” or “Howard Hughes”) announced today that the Company will release 2026 first quarter earnings on Thursday, May 7, 2026, after the market closes and will hold its first quarter conference call on Friday, May 8, 2026, at 10:00 AM Eastern Time. The Company's earnings release will be posted to the Investors section of the Company's website prior to the conference call.

Please visit the Howard Hughes website to listen to the earnings call via a live webcast. Listeners who wish to participate in the question and answer session may do so via telephone by pre-registering on HHH’s earnings call registration webpage. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company’s website immediately following the conclusion of the live call for a period of one year.

About Howard Hughes Holdings Inc.
Howard Hughes Holdings Inc. (HHH) is a holding company focused on growing long-term shareholder value. Through its real estate platform, Howard Hughes Communities, HHH owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including The Woodlands®, Bridgeland® and The Woodlands Hills® in Greater Houston; Summerlin® in Las Vegas; Teravalis™ in Greater Phoenix; Ward Village® in Honolulu; and Merriweather District in Columbia, Maryland. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com.

Media Relations:

Cristina Carlson
Howard Hughes
[email protected]
646-822-6910

Francis McGill
Pershing Square
[email protected]
212-909-2455

Investor Relations:

[email protected]
281-929-7700

Posted by Defense World Staff on Apr 24th, 2026

Shares of Howard Hughes Holdings Inc. (NYSE:HHH – Get Free Report) have been given an average rating of “Hold” by the five analysts that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $83.3333.

Separately, Weiss Ratings lowered Howard Hughes from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 6th.

Get Our Latest Report on Howard Hughes

Howard Hughes Stock Down 0.9% NYSE:HHH opened at $64.11 on Tuesday. The company’s 50-day simple moving average is $67.60 and its 200-day simple moving average is $77.29. The company has a debt-to-equity ratio of 1.73, a quick ratio of 1.19 and a current ratio of 1.19. Howard Hughes has a fifty-two week low of $61.01 and a fifty-two week high of $91.07. The stock has a market capitalization of $3.82 billion, a P/E ratio of 30.38 and a beta of 1.28.

Howard Hughes (NYSE:HHH – Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.21). Howard Hughes had a return on equity of 5.54% and a net margin of 8.40%.The firm had revenue of $624.45 million for the quarter. During the same period in the previous year, the business posted $3.25 EPS. The firm’s quarterly revenue was down 36.5% compared to the same quarter last year. On average, equities analysts anticipate that Howard Hughes will post 4.06 earnings per share for the current fiscal year.

Insider Transactions at Howard Hughes In other Howard Hughes news, General Counsel Joseph Valane purchased 1,260 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was bought at an average cost of $64.45 per share, for a total transaction of $81,207.00. Following the completion of the purchase, the general counsel owned 29,209 shares in the company, valued at $1,882,520.05. This represents a 4.51% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 48.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Howard Hughes Large investors have recently bought and sold shares of the company. Global Retirement Partners LLC acquired a new stake in shares of Howard Hughes in the third quarter worth $31,000. Signaturefd LLC lifted its position in Howard Hughes by 41.5% during the fourth quarter. Signaturefd LLC now owns 423 shares of the company’s stock valued at $34,000 after purchasing an additional 124 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in Howard Hughes by 191.5% in the second quarter. EverSource Wealth Advisors LLC now owns 516 shares of the company’s stock valued at $35,000 after purchasing an additional 339 shares during the last quarter. Huntington National Bank boosted its holdings in Howard Hughes by 134.1% in the fourth quarter. Huntington National Bank now owns 494 shares of the company’s stock valued at $39,000 after purchasing an additional 283 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in Howard Hughes during the 4th quarter worth about $43,000. Hedge funds and other institutional investors own 93.83% of the company’s stock.

Howard Hughes Company Profile (Get Free Report)

Howard Hughes Holdings Inc, together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona.

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THE WOODLANDS, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company,” “HHH,” “Howard Hughes,” or “we”) today reported first quarter 2026 results, highlighting higher MPC land sales, steady growth in recurring Operating Assets NOI, and progress on the Company’s transition to a diversified holding company. The financial statements, exhibits, and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as available through the Investors section of our website, provide further detail of these results.

“Howard Hughes is building on the strength of its cash-generative real estate platform as we transform the Company into a diversified holding company focused on compounding intrinsic value per share,” said Bill Ackman, Executive Chairman of Howard Hughes. “Our pending acquisition of Vantage is a key step in that evolution, adding a second engine of long-duration earnings alongside our communities. Vantage is a specialty insurance and reinsurance business that we believe will broaden our earnings base, add a complementary source of long-duration capital, and expand our opportunity set as we allocate capital across multiple platforms while preserving the value creation embedded in our real estate business. Everything is still on track to close this transaction during the second quarter and commence this new growth phase for the company.”

First Quarter 2026 Highlights:

Net income attributable to common stockholders decreased to $8.2 million in the current quarter, compared to $10.5 million in the prior-year period.Total Operating Assets Net Operating Income (NOI) was $73.1 million, an increase of $1.6 million or 2% compared to the prior-year period, reflecting modest increases across all property types and continued growth from strong leasing activity in both office and multifamily.Master Planned Communities (MPC) EBT totaled $84 million, up $21 million or 33% from the prior-year period, primarily due to increased residential acres sold in Bridgeland.Closed the final six units at Ulana Ward Village and commenced construction on The Launiu.Maintained a strong liquidity position with $1.8 billion of cash and cash equivalents, $515 million of undrawn capacity on its Secured Bridgeland Notes, $1.1 billion of undrawn lender commitments available for property development, subject to certain restrictions, and limited near-term debt maturities as of March 31, 2026.Closing of the previously announced agreement to acquire 100% of Vantage Group Holdings Ltd. (Vantage), a privately held leading specialty insurance and reinsurance company, for approximately $2.1 billion, is expected to occur during the second quarter of 2026. “2026 is a pivotal year for Howard Hughes. Our communities are delivering strong land sales, healthy net new home demand, and continued leasing growth, and we are adding a second engine of long-duration earnings with Vantage,” said David R. O’Reilly, Chief Executive Officer of Howard Hughes. “MPC land sales increased 39% and net new home sales rose 11% in the quarter compared to last year, reinforcing the depth and durability of demand across our communities. At Ward Village, we completed Ulana and broke ground on The Launiu, which is already 74% pre-sold for delivery in 2028. As we close the Vantage acquisition, we are repositioning Howard Hughes as a diversified holding company built on recurring cash flows and disciplined capital allocation, designed to compound intrinsic value per share over decades, not quarters.”

Financial Highlights

MPC

MPC revenue increased to $112.3 million, a 33% increase from the prior-year period.MPC EBT totaled $84.4 million, up $21.1 million or 33% compared to the prior-year period, primarily driven by strong residential land sales at Bridgeland.All MPC’s had an increase in net new home sales during the quarter compared to the prior-year period, with Bridgeland achieving a 12% increase, Summerlin a 6% increase, and The Woodlands Hills a 38% increase compared to the first quarter of 2025.
Operating Assets

Operating Assets revenue increased to $119.2 million from $114.0 million in the prior-year period, and Total Operating Assets NOI increased to $73.1 million from $71.6 million.The year-over-year increase was primarily driven by 3% growth in Multifamily NOI and 2% growth in Office NOI. Strategic Developments

The final six units at Ulana Ward Village closed during the quarter; however, condominium sales net of cost of sales remained flat because Ulana is a workforce tower and closed at a breakeven gross margin as expected.The Company also commenced construction on The Launiu in the first quarter of 2026. Financing Activity

In February 2026, Howard Hughes Corporation (HHC), the Company’s wholly owned subsidiary, issued $500.0 million of 5.875% senior unsecured notes due 2032 and $500.0 million of 6.125% senior unsecured notes due 2034. HHC used the net proceeds to redeem its outstanding $750.0 million 5.375% senior unsecured notes due 2028, including premiums, accrued and unpaid interest and related expenses, and will use the remaining proceeds for general corporate purposes.Closed on a $300.0 million new five-year mortgage secured by Downtown Summerlin and a related interest rate swap resulting in a fixed interest rate of 5.52%.10285 Lakefront Medical Office exercised the first extension option to extend its maturity from March 2026 to March 2027.
Redesigned Supplemental Information Report

As Howard Hughes transitions into a diversified holding company, we expect our reporting framework to evolve. To that end, we are introducing a redesigned Supplemental Information report this quarter that will be posted to our website. The intent of the redesigned report is to better align our public disclosure with how management evaluates the business and to provide new metrics that help bridge the gap between company results and underlying value.

Following the anticipated closing of the Vantage transaction, our earnings base will include both real estate and insurance platforms, each with distinct economic drivers. As a result, we intend to move from supplemental annual guidance to longer-term objectives for each platform that better reflect how we allocate capital and manage the business through cycles.

Conference Call & Webcast Information

Howard Hughes Holdings Inc. will host its first quarter 2026 earnings conference call on Friday, May 8, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). A presentation accompanying this earnings release has been posted to the Investors section of the Company's website. Management will use this presentation during the call.

Please visit the Howard Hughes website to listen to the earnings call via a live webcast. For listeners who wish to participate in the question-and-answer session via telephone, please preregister using HHH’s earnings call registration webpage. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company’s website immediately after the call for a period of one year.

We are primarily focused on creating shareholder value by increasing our per-share value creation and long-term cash generation. Often, the nature of our business results in short-term volatility in our net income due to the timing of MPC land sales, recognition of condominium revenue and operating business pre-opening expenses, and, as such, we believe the following metrics summarized below are most useful in tracking our progress towards net asset value creation.

 Three Months Ended March 31,$ in thousands 2026  2025 $ Change% ChangeOperating Assets NOI (1)      Office$33,712 $32,903 $809 2%Retail 13,964  13,810  154 1%Multifamily 16,288  15,763  525 3%Other 1,695  1,542  153 10%Operating Assets NOI 65,659  64,018  1,641 3%Company's share of NOI from unconsolidated ventures 7,490  7,548  (58)(1)%Total Operating Assets NOI$73,149 $71,566 $1,583 2%       MPC      Acres Sold - Residential 87  70  17 24%Acres Sold - Commercial 6  —  6 NMPrice Per Acre - Residential$984 $991 $(7)(1)%Price Per Acre - Commercial$613 $— $613 NMMPC EBT$84,376 $63,264 $21,112 33%       Strategic Developments      Condominium rights and unit sales$3,134 $342 $2,792 NM NM - Not Meaningful

(1)See the accompanying appendix for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.   About Howard Hughes Holdings Inc.

Howard Hughes Holdings (HHH) is a holding company focused on growing long-term shareholder value. Through its real estate platform, Howard Hughes Communities, HHH owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including The Woodlands®, Bridgeland® and The Woodlands Hills® in Greater Houston; Summerlin® in Las Vegas; Teravalis™ in Greater Phoenix; Ward Village® in Honolulu; and Merriweather District in Columbia, Maryland. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com. 

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). All statements other than statements of historical fact included in this press release are forward-looking statements. We claim the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, or business. You can identify forward-looking statements by the fact that they do not relate strictly to current or historical facts. These statements may include words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “will,” “would,” and other statements of similar expression. Forward-looking statements should not be relied upon. They give our expectations about the future and are not guarantees. Forward-looking statements are not a guaranty of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict. Some of the risks, uncertainties and other important factors that may affect future results or cause actual results to differ materially from those expressed or implied by forward-looking statements include: (i) our ability to realize the anticipated benefits of the transactions with Pershing Square and our new strategy of becoming a diversified holding company; (ii) our ability to identify and consummate transactions as part of our new strategy of becoming a diversified holding company; (iii) risks inherent in acquiring or making investments in operating companies, especially companies in industries unrelated to our existing real estate business; (iv) our ability to satisfy the conditions to closing and consummate the proposed acquisition of Vantage (Vantage Transaction), integrate it into our operations, and realize the financial benefits currently anticipated from such acquisition; (v) our ability to realize the anticipated benefits of the spinoff of Seaport Entertainment Group Inc. that we completed in 2024; (vi) macroeconomic conditions such as volatility in capital markets, unstable economic and political conditions within the U.S. and foreign jurisdictions, geopolitical conflicts, and a prolonged recession in the national economy, including any adverse business or economic conditions in the homebuilding, condominium-development, retail, and office sectors; (vii) changes in trade policies, including tariffs or duties on construction or homebuilding materials, potential retaliatory actions by other countries, and related impacts on market conditions and business activity; (viii) our inability to obtain operating and development capital for our properties, including our inability to obtain or refinance debt capital from lenders and the capital markets; (ix) interest rate volatility and inflation; (x) the availability of debt and equity capital; (xi) our ability to compete effectively, including the potential impact of heightened competition for tenants and potential decreases in occupancy at our properties; (xii) general inflation, including core and wage inflation; commodity and energy price and currency volatility; as well as monetary, fiscal and policy interventions in anticipation of our reaction to such events, including changes in interest rates; (xiii) mismatch of supply and demand, including interruptions of supply lines; (xiv) extreme weather conditions or climate change, including natural disasters, that may cause property damage or interrupt business; (xv) the impact of water and electricity shortages; (xvi) contamination of our property by hazardous or toxic substances; (xvii) terrorist activity, acts of violence, or breaches of our or our vendors’ data security; (xviii) losses that are not insured or exceed the applicable insurance limits; (xix) our ability to lease new or redeveloped space; (xx) our ability to obtain the necessary governmental permits for the development of our properties and necessary regulatory approvals pursuant to an extensive entitlement process involving multiple and overlapping regulatory jurisdictions, which often require discretionary action by local governments; (xxi) increased construction costs exceeding our original estimates, delays or overruns, claims for construction defects, or other factors affecting our ability to develop, redevelop or construct our properties; (xxii) regulation of the portion of our business that is dedicated to the formation and sale of condominiums, including regulatory filings to state agencies, additional entitlement processes, and requirements to transfer control to a condominium association’s board of directors in certain situations, as well as potential defaults by purchasers on their obligations to purchase condominiums; (xxiii) fluctuations in regional and local economies, the impact of changes in interest rates on residential housing and condominium markets, local real estate conditions, tenant rental rates, and competition from competing retail properties and the internet; (xxiv) inherent risks related to disruption of information technology networks and related systems, including cyber security attacks; (xxv) our ability to attract and retain key personnel; (xxvi) our ability to collect rent and attract tenants; (xxvii) our indebtedness, including our $650,000,000 4.125% senior unsecured notes due 2029, $650,000,000 4.375% senior unsecured notes due 2031, $500,000,000 5.875% senior unsecured notes due 2032, and $500,000,000 6.125% senior unsecured notes due 2034, contain restrictions that may limit our ability to operate our business; (xxviii) our directors’ involvement or interests in other businesses, including real estate activities and investments; (xxix) our inability to control certain of our properties due to the joint ownership of such property and our inability to successfully attract desirable strategic partners; (xxx) our dependence on the operations and funds of our subsidiaries, including The Howard Hughes Corporation; (xxxi) catastrophic events or geopolitical conditions, such as international armed conflicts, or the occurrence of epidemics or pandemics; and (xxxii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the SEC. The Company refers you to the section entitled “Risk Factors” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission. Copies of each filing may be obtained from the Company or the Securities and Exchange Commission. The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the Company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

Financial Presentation

As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. Non-GAAP financial measures should not be considered independently, or as a substitute, for financial information presented in accordance with GAAP. A non-GAAP financial measure used throughout this release is net operating income (NOI). We provide a more detailed discussion about this non-GAAP measure and a reconciliation to the most directly comparable GAAP measure in the appendix to this earnings release.

Contacts

Media Relations:
Cristina Carlson
Howard Hughes
[email protected] 
646-822-6910

Francis McGill
Pershing Square
[email protected] 
212-909-2455

Investor Relations:
[email protected] 
281-929-7700

HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
   Three Months Ended March 31,thousands except per share amounts 2026   2025 REVENUES   Condominium rights and unit sales$3,134  $342 Master Planned Communities land sales 99,573   71,642 Rental revenue 113,549   108,413 Other revenues 10,979   9,644 Builder price participation 8,682   9,287 Total revenues 235,917   199,328     EXPENSES   Condominium rights and unit cost of sales 3,134   242 Master Planned Communities cost of sales 34,742   25,214 Operating costs 53,033   50,789 Rental property real estate taxes 16,228   15,299 Provision for (recovery of) doubtful accounts (59)  (156)General and administrative 25,758   22,436 Depreciation and amortization 48,640   45,139 Other 3,892   4,797 Total expenses 185,368   163,760     OTHER   Gain (loss) on sale or disposal of real estate and other assets, net —   13,729 Other income (loss), net 127   (1,367)Total other 127   12,362     Operating income (loss) 50,676   47,930     Interest income 14,663   6,118 Interest expense (41,790)  (41,094)Gain (loss) on extinguishment of debt (10,226)  — Equity in earnings (losses) from unconsolidated ventures (2,640)  1,320 Income (loss) before income taxes 10,683   14,274 Income tax expense (benefit) 2,618   3,436 Net income (loss) 8,065   10,838 Net (income) loss attributable to noncontrolling interests 161   (305)Net income (loss) attributable to common stockholders$8,226  $10,533     Basic income (loss) per share$0.14  $0.21 Diluted income (loss) per share$0.14  $0.21          HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED
    thousands except par values and share amounts March 31, 2026 December 31, 2025ASSETS   Master Planned Communities assets$2,653,161  $2,635,077 Buildings and equipment 4,100,037   4,028,862 Less: accumulated depreciation (1,124,704)  (1,082,124)Land 307,625   307,625 Developments 1,569,667   1,477,615 Net investment in real estate 7,505,786   7,367,055 Investments in unconsolidated ventures 167,815   170,122 Cash and cash equivalents 1,835,829   1,468,507 Restricted cash 653,454   628,651 Accounts receivable, net 131,559   134,122 Municipal Utility District (MUD) receivables, net 532,689   459,729 Deferred expenses, net 166,082   160,966 Operating lease right-of-use assets 5,074   5,231 Other assets, net 249,827   245,078 Total assets$11,248,115  $10,639,461     LIABILITIES   Mortgages, notes, and loans payable, net$5,791,296  $5,109,828 Operating lease obligations 4,773   4,868 Deferred tax liabilities, net 166,143   164,472 Accounts payable and other liabilities 1,435,994   1,518,047 Total liabilities 7,398,206   6,797,215     EQUITY   Preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued —   — Common stock: $0.01 par value; 150,000,000 shares authorized, 66,226,325 issued, and 59,630,969 outstanding as of March 31, 2026, 65,910,640 shares issued, and 59,370,353 outstanding as of December 31, 2025 662   659 Additional paid-in capital 4,462,910   4,458,838 Retained earnings (accumulated deficit) (53,870)  (62,096)Accumulated other comprehensive income (loss) (2,381)  (1,827)Treasury stock, at cost, 6,595,356 shares as of March 31, 2026, and 6,540,287 shares as of December 31, 2025 (624,521)  (620,118)Total stockholders' equity 3,782,800   3,775,456 Noncontrolling interests 67,109   66,790 Total equity 3,849,909   3,842,246 Total liabilities and equity$11,248,115  $10,639,461          Segment Earnings Before Taxes (EBT)

The Company has three business segments, Operating Assets, MPC, and Strategic Developments. EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments.

 Three Months Ended March 31,thousands except percentages 2026   2025  $ ChangeOperating Assets Segment EBT     Total revenues$119,202  $114,002  $5,200 Total operating expenses (50,925)  (48,817)  (2,108)Segment operating income (loss) 68,277   65,185   3,092 Depreciation and amortization (45,578)  (43,123)  (2,455)Interest income (expense), net (33,507)  (34,218)  711 Other income (loss), net 19   (196)  215 Equity in earnings (losses) from unconsolidated ventures 5,877   4,643   1,234 Gain (loss) on sale or disposal of real estate and other assets, net —   9,979   (9,979)Operating Assets segment EBT$(4,912) $2,270  $(7,182)      Master Planned Communities Segment EBT     Total revenues$112,281  $84,454  $27,827 Total operating expenses (47,877)  (38,205)  (9,672)Segment operating income (loss) 64,404   46,249   18,155 Depreciation and amortization (65)  (111)  46 Interest income (expense), net 21,712   16,786   4,926 Other income (loss), net 1,860   —   1,860 Equity in earnings (losses) from unconsolidated ventures (3,535)  (3,410)  (125)Gain (loss) on sale or disposal of real estate and other assets, net —   3,750   (3,750)MPC segment EBT$84,376  $63,264  $21,112       Strategic Developments Segment EBT     Total revenues$4,407  $854  $3,553 Total operating expenses (8,089)  (4,366)  (3,723)Segment operating income (loss) (3,682)  (3,512)  (170)Depreciation and amortization (2,057)  (1,158)  (899)Interest income (expense), net 4,974   4,646   328 Other income (loss), net (889)  (1,262)  373 Equity in earnings (losses) from unconsolidated ventures (4,982)  87   (5,069)Strategic Developments segment EBT$(6,636) $(1,199) $(5,437)             Appendix – Reconciliation of Non-GAAP Measures

Below are GAAP to non-GAAP reconciliations of certain financial measures, as required under Regulation G promulgated by the Securities and Exchange Commission. Non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

Net Operating Income (NOI)

We define NOI as operating revenues (rental income, tenant recoveries, and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing, and other property expenses). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other income (loss); depreciation and amortization; development-related marketing costs; gain on sale or disposal of real estate and other assets, net; loss on extinguishment of debt; provision for impairment; and equity in earnings from unconsolidated ventures. This amount is presented as Operating Assets NOI throughout this document. Total Operating Assets NOI represents NOI as defined above with the addition of our share of NOI from unconsolidated ventures.

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets segment because it provides a performance measure that reflects the revenues and expenses directly associated with owning and operating real estate properties. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as rental and occupancy rates, tenant mix, and operating costs have on our operating results, gross margins, and investment returns.

A reconciliation of segment EBT to NOI for Operating Assets is presented in the table below:

 Three Months Ended March 31,thousands 2026   2025  $ ChangeOperating Assets Segment     Total revenues$119,202  $114,002  $5,200 Total operating expenses (50,925)  (48,817)  (2,108)Segment operating income (loss) 68,277   65,185   3,092 Depreciation and amortization (45,578)  (43,123)  (2,455)Interest income (expense), net (33,507)  (34,218)  711 Other income (loss), net 19   (196)  215 Equity in earnings (losses) from unconsolidated ventures 5,877   4,643   1,234 Gain (loss) on sale or disposal of real estate and other assets, net —   9,979   (9,979)Operating Assets segment EBT (4,912)  2,270   (7,182)Add back:     Depreciation and amortization 45,578   43,123   2,455 Interest (income) expense, net 33,507   34,218   (711)Equity in (earnings) losses from unconsolidated ventures (5,877)  (4,643)  (1,234)(Gain) loss on sale or disposal of real estate and other assets, net —   (9,979)  9,979 Impact of straight-line rent (2,622)  (1,160)  (1,462)Other (15)  189   (204)Operating Assets NOI 65,659   64,018   1,641       Company's share of NOI from equity investments 2,172   1,943   229 Distributions from Summerlin Hospital investment 5,318   5,605   (287)Company's share of NOI from unconsolidated ventures 7,490   7,548   (58)Total Operating Assets NOI$73,149  $71,566  $1,583              Same Store NOI - Operating Assets Segment

The Company defines Same Store Properties as consolidated and unconsolidated properties that are acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented. Same Store Properties exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as in-service for that property to be included in Same Store Properties.

We calculate Same Store Net Operating Income (Same Store NOI) as Operating Assets NOI applicable to Same Store Properties. Same Store NOI also includes the Company's share of NOI from unconsolidated ventures and the annual distribution from a cost basis investment. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other companies may not define Same Store NOI in the same manner as we do; therefore, our computation of Same Store NOI may not be comparable to that of other companies. Additionally, we do not control investments in unconsolidated properties and while we consider disclosures of our share of NOI to be useful, they may not accurately depict the legal and economic implications of our investment arrangements.

 Three Months Ended March 31,thousands 2026   2025  $ ChangeSame Store Office     Houston, TX$21,285  $21,933  $(648)Columbia, MD 6,620   5,585   1,035 Las Vegas, NV 6,051   5,385   666 Total Same Store Office 33,956   32,903   1,053       Same Store Retail     Houston, TX 3,171   2,807   364 Columbia, MD 1,147   1,546   (399)Las Vegas, NV 6,627   5,956   671 Honolulu, HI 2,920   3,502   (582)Total Same Store Retail 13,865   13,811   54       Same Store Multifamily     Houston, TX 9,157   9,735   (578)Columbia, MD 3,943   3,357   586 Las Vegas, NV 3,213   2,671   542 Company's share of NOI from unconsolidated ventures 1,967   1,721   246 Total Same Store Multifamily 18,280   17,484   796       Same Store Other     Houston, TX 1,207   1,201   6 Columbia, MD 91   (48)  139 Las Vegas, NV 356   365   (9)Honolulu, HI 41   24   17 Company's share of NOI from unconsolidated ventures 5,523   5,827   (304)Total Same Store Other 7,218   7,369   (151)Total Same Store NOI 73,319   71,567   1,752       Non-Same Store NOI (170)  (1)  (169)Total Operating Assets NOI$73,149  $71,566  $1,583 

Howard Hughes Holdings (HHH - Free Report) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +75.00%. A quarter ago, it was expected that this land developer would post earnings of $0.31 per share when it actually produced earnings of $0.1, delivering a surprise of -67.74%.

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

Howard Hughes Holdings, which belongs to the Zacks Real Estate - Development industry, posted revenues of $235.92 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 9.67%. This compares to year-ago revenues of $199.33 million. The company has topped consensus revenue estimates three 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.

Howard Hughes Holdings shares have lost about 19.6% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Howard Hughes Holdings?While Howard Hughes Holdings 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 Howard Hughes Holdings 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 #5 (Strong 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 $0.79 on $533.67 million in revenues for the coming quarter and $3.01 on $1.67 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, Real Estate - Development is currently in the bottom 12% 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 broader Zacks Finance sector, Accelerant Holdings (ARX - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.

This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +433.3%. The consensus EPS estimate for the quarter has been revised 2.5% lower over the last 30 days to the current level.

Accelerant Holdings' revenues are expected to be $247.39 million, up 39% from the year-ago quarter.

Howard Hughes Holdings rolled out a new set of metrics to more accurately value the real estate business. This framework, when adding in the new Vantage insurance business, estimates HHH's current value at $104/share and projects $211/share by 2030. Even without Vantage, HHH looks like a bargain considering the value of unsold land in the Master Planned Communities, along with income from condo sales and leasing activities.

What happenedAccording to a SEC filing disclosed May 15, 2026, Landmark Investment Partners L.P sold 80,107 shares of Howard Hughes Holdings (HHH +0.99%),  during the first quarter. The holding's quarter-end valuation decreased by $7.01 million, a figure that incorporates both the sale and share price movement.

What else to knowLandmark Investment Partners reduced its HHH position, which now accounts for 1.7% of 13F assets under management

Top holdings after the filing:

NYSE:HLT: $12.80 million (13.2% of AUM)NYSE:AIV: $10.40 million (10.7% of AUM)NYSE:CNS: $10.05 million (10.4% of AUM)NYSE:CBRE: $8.53 million (8.8% of AUM)NYSE:DEI: $7.18 million (7.4% of AUM)As of May 14, 2026, shares were priced at $64.66, down 8.9% over one year. The position was previously 4.4% of the fund's AUM as of the prior quarter.

Company OverviewMetricValuePrice (as of market close 2026-05-14)$64.66Revenue (TTM)$1.51 billionNet Income (TTM)$121.59 millionOne-Year Price Change-8.94%Company SnapshotHoward Hughes Holdings is a leading U.S. real estate development and management company with a focus on large-scale, master planned communities and diversified operating assets.

The company develops and operates diversified real estate assets including retail, office, multi-family, and master planned communities, with additional exposure to hospitality and entertainment properties. The company generates revenue primarily through property leasing, land sales, and development fees across residential, commercial, and mixed-use projects in major U.S. markets.

It leverages its expertise in community design and mixed-use development to create long-term value across multiple geographies. Its integrated approach and portfolio diversification provide resilience and strategic flexibility in changing real estate markets.

Howard Hughes Holdings serves homebuilders, commercial tenants, retail operators, and residential buyers seeking high-quality, integrated communities and destination properties.

What this transaction means for investorsHoward Hughes Holdings builds value by developing large master-planned communities. Land sales in these areas can lead to future demand for apartments, retail, office space, and other properties. Examples like Bridgeland, Summerlin, Ward Village, and The Woodlands give the company land it can use for years, rather than relying only on collecting rent. In the first quarter, Howard Hughes reported stronger land sales and steady leasing growth, keeping its community-focused business central to its investment story.

That model can be powerful, but it is not always smooth. Land sales, condominium closings, and development milestones can make results uneven from quarter to quarter, while operating assets provide a steadier base as communities mature. The better read is whether Howard Hughes continues to deepen the value of its communities through land demand, leasing activity, and disciplined development, rather than treating any single quarter as a clean run rate.

For investors, the pending Vantage acquisition raises the importance of capital allocation. Howard Hughes is trying to pair its real estate platform with specialty insurance and reinsurance through a roughly $2.1 billion deal expected to close in the second quarter of 2026. That could broaden the company beyond real estate development, but it also asks shareholders to value two different engines under one strategy.

Annie Dean, Chief Strategy Officer at CBRE, is a member of The Motley Fool’s board of directors. Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Howard Hughes. The Motley Fool has a disclosure policy.

Speaking at a recent All-In Podcast live event, Ackman highlighted the investment methods used by Buffett to build value for Berkshire Hathaway over time.

Ackman said Buffett was really the first to focus on the asset side more than the liability side of the insurance sector. The investor added that Buffett was able to build a compounding, tax-efficient machine by writing the risks on insurance, taking premiums, and then investing that money up front.

"Buffett started with a crappy textile company," Ackman said

For Ackman, he's attempting to start with Howard Hughes Holdings (NYSE:HHH), a publicly traded commercial and residential real estate company.

"The market doesn't like this thing."

Ackman said that Wall Street hasn't cared about Howard Hughes stock for a long time and now investors can buy the company at a discount to liquidation value.

"We're going to build this into a compounding machine over the next 50 years. It's something I've always wanted to do."  

Ackman highlighted the current assets of Howard Hughes and said the insurance side of the business is minimal, but growing.

"I think we can build a really profitable insurance company."

Ackman said his goal is to build the company into a $1 trillion valued company over time.

Investing Alongside AckmanAckman warned investors that this is not a get-rich-quick move.

He also said that successful investors would likely avoid trying to accomplish what Buffett did, without a sharp understanding of the insurance business, something he said he's confident in.

Asked about how investors can invest in the future success of Ackman and the building of the next Berkshire Hathaway, the investor said there are three ways:

Ackman has years of success building Pershing Square through passive and activist stakes that saw him push for changes at companies to unlock shareholder value.

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LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) (“PSH”) today announced the completion of its subscription for $1 billion of non-voting exchangeable perpetual preferred stock issued by Howard Hughes Holdings Inc. (NYSE: HHH) (“HHH”) (the “PSH Preferred Stock”) in connection with the completion of HHH's acquisition by its subsidiary Howard Hughes Insurance Holdings, LLC (“InsuranceCo”) of Vantage Group Holdings, Ltd. (“Vantage”), a privately held specialty insurance an.

Bill Ackman’s Pershing Square has closed the book on one of its most ambitious activist campaigns. According to CNBC reporting based on The Wall Street Journal, the firm sold its entire stake in Universal Music Group (OTC:UMGNF) following two failed takeover attempts, sending UMG shares down 7% on the news. Shares have since rebounded, but are down 6% across the past week.

On CNBC this morning, Andrew Ross Sorkin captured the paradox: “Here’s the end of a saga, the end of a soap opera. It’s a soap opera that didn’t work for him and worked for him at the same time.”

The Exit and the Scorecard When an activist with takeover ambitions walks away, the message is usually clear: the value-unlock thesis (a sale, a breakup, or a strategic overhaul) is no longer achievable within a reasonable timeline. Per the WSJ-sourced CNBC reporting, UMG itself repurchased more than 14 million of Pershing’s shares for roughly $290 million, a transaction that lets the company use its balance sheet to facilitate the activist’s exit while signaling confidence in standalone value.

Financially, the campaign was a win. A $600 million profit on a $1.5 billion-plus position is a strong outcome even without the takeover, and it reflects the re-rating activist involvement often creates. Strategically, the goal was different, and on that score the campaign came up short.

Why UMG Fell 7% The drop reflects the removal of takeover optionality. When a deep-pocketed activist publicly pushes for a sale, part of the share price reflects the probability of a premium acquisition. Ackman’s exit prices that probability out. The buyback partially cushions the move by signaling management confidence in the standalone plan.

Pershing Square’s playbook (concentrated, long-duration, often activist) is on full display with Howard Hughes Holdings (NYSE:HHH | HHH Price Prediction). Pershing invested $900 million in 2025 (stake has increased to $1.7 billion as of the end of April) to convert the master-planned community developer into a Berkshire-style diversified holding company. The pending $2.1 billion acquisition of specialty insurer Vantage Group Holdings is meant to add what CEO David O’Reilly calls “a second engine of long-duration earnings.”

Q1 2026 supported the thesis: EPS of $0.14 beat the $0.08 estimate, and revenue of $235.92 million rose 18.4% year over year, with MPC land sales jumping 33% to $112.28 million. The market has yet to reward the transformation. HHH is down 20.48% year to date at $63.43, with an analyst target price of $90.33.

The Takeaway Activist involvement adds a takeover premium to a stock, and that premium evaporates when the activist exits. UMG holders are learning that today. Howard Hughes holders are watching a different version of the same playbook: concentrated capital, long duration, and a willingness to either win the campaign or take the money and move on. With roughly $1.5 billion in proceeds to redeploy, where Ackman lands next is worth watching.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Cencora, Inc. ("Cencora" or the "Company") (NYSE: COR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Cencora and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 6, 2026, Cencora released its second quarter 2026 financial results, including revenue of $78.3 billion, missing consensus estimates by $2.68 billion, and reducing full year 2026 revenue growth guidance to 4% to 6% (from 7% to 9%).  In the accompanying earnings call, management revealed, among other things, that "manufactured list price reductions . . . represented a $2 billion revenue headwind in the quarter." 

On this news, Cencora's stock price fell $53.16 per share, or 17.4%, to close at $252.74 per share on May 6, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

LOS ANGELES, May 18, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Cencora, Inc. (“Cencora” or “the Company”) (NYSE: COR) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Cencora released its Q2 2026 financial results on May 6, 2026. The Company missed consensus estimates for the quarter and lowered its full year guidance. The Company claimed that "manufactured list price reductions . . . represented a $2 billion revenue headwind in the quarter." Based on this news, shares of Cencora fell by 17.4% on the same day.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

CONTACT:

The Schall Law Firm 
Brian Schall, Esq. 
310-301-3335
[email protected]

www.schallfirm.com

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Cencora, Inc. ("Cencora" or the "Company") (NYSE: COR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Cencora and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 6, 2026, Cencora released its second quarter 2026 financial results, including revenue of $78.3 billion, missing consensus estimates by $2.68 billion, and reducing full year 2026 revenue growth guidance to 4% to 6% (from 7% to 9%).  In the accompanying earnings call, management revealed, among other things, that "manufactured list price reductions . . . represented a $2 billion revenue headwind in the quarter." 

On this news, Cencora's stock price fell $53.16 per share, or 17.4%, to close at $252.74 per share on May 6, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected] 
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

U.S. drug distributor Cencora on Thursday raised the lower end of its fiscal ​2026 earnings forecast citing recent ‌share repurchases, and also approved a new $2 billion stock buyback plan.

NEW YORK, May 26, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cencora, Inc. (“Cencora” or the “Company”) (NYSE: COR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Cencora and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 6, 2026, Cencora released its second quarter 2026 financial results, including revenue of $78.3 billion, missing consensus estimates by $2.68 billion, and reducing full year 2026 revenue growth guidance to 4% to 6% (from 7% to 9%).  In the accompanying earnings call, management revealed, among other things, that “manufactured list price reductions . . . represented a $2 billion revenue headwind in the quarter.” 

On this news, Cencora’s stock price fell $53.16 per share, or 17.4%, to close at $252.74 per share on May 6, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Key Takeaways Cardinal Health raised FY2026 EPS guidance after Q3 revenues rose 11% and EPS climbed 35%.CAH expects specialty sales above $50B in FY2026, fueled by MSO and care expansion.Cencora reaffirmed FY2026 guidance despite slower GLP-1 growth and brand headwinds. Cardinal Health (CAH - Free Report) and Cencora (COR - Free Report) remain central players in pharmaceutical distribution, but their growth strategies are increasingly defined by specialty expansion and higher-margin health care services.

Cardinal Health’s momentum is being driven by its Pharmaceutical and Specialty Solutions business, MSO platform expansion, and growing exposure to faster-growing verticals such as Nuclear and Precision Health, at-Home Solutions, and logistics. Cencora, meanwhile, continues to capitalize on specialty pharmaceuticals, digital transformation, and oncology-focused MSOs. Both companies appear positioned for continued growth in 2026, albeit with different risk-reward dynamics.

Cardinal Health posted another solid quarter for third-quarter fiscal 2026, reporting 11% revenue growth to $61 billion and a 35% increase in adjusted EPS, fueled by Pharmaceutical and Specialty Solutions and expanding higher-margin businesses.

Management raised fiscal 2026 EPS guidance to $10.70-$10.80 and expressed confidence in continued momentum into fiscal 2027. Cencora delivered more measured growth in the second quarter of fiscal 2026, with revenues increasing 4% and adjusted EPS growing 7.5%, while reaffirming confidence in fiscal 2026 guidance despite near-term headwinds from slower GLP-1 growth and brand conversions.

Price Performance

So far this year, Cardinal Health has lost 2.5% compared with Cencora’s decline of 19.8%. While the broader Medical sector declined 5.4%, the S&P 500 Index was up 9.6% in the same period.

YTD Price Chart CAH vs COR

Image Source: Zacks Investment Research

Case for CAHCardinal Health’s strongest advantage lies in the accelerating growth of its Pharmaceutical and Specialty Solutions segment and the increasing interconnectedness of its specialty ecosystem. Specialty revenues continue to grow more than 20%, with management expecting specialty sales to exceed $50 billion in fiscal 2026. The company is expanding its MSO footprint through Specialty Alliance, integrating Solaris, and pursuing tuck-in acquisitions in autoimmune, urology, and gastroenterology to strengthen physician relationships and enhance patient access.

Beyond specialty drugs, CAH is broadening into high-growth verticals that could support sustained earnings expansion. At-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics posted 31% revenue growth and 34% profit growth in the fiscal third quarter, supported by secular tailwinds such as theranostics, home-based care, and supply-chain optimization. The company’s Actinium-225 investments and growing synergies between Nuclear and Specialty further strengthen its long-term outlook.

Challenges remain, particularly around tariff exposure in GMPD and evolving Inflation Reduction Act (IRA) pricing impacts. However, management emphasized stronger operational execution and continued growth in Cardinal Health brand products, which have now outpaced the market for five consecutive quarters.

CAH’s Consensus Estimate Movement

Image Source: Zacks Investment Research

Case for CORCencora’s core strength continues to be specialty pharmaceuticals and its pharmaceutical-centric strategy. The company is deepening its position in oncology and specialty care through MSOs such as OneOncology and RCA, while strengthening specialty logistics and physician support services. Management highlighted increasing collaboration across MSO platforms and improving performance in global specialty logistics, which delivered a second consecutive quarter of operating income growth.

COR is also investing heavily in digital transformation, AI-supported customer tools, and end-to-end specialty solutions through Accelerate Pharmacy Solutions, reinforcing its role in specialty pharmaceutical distribution. Additionally, the acquisition of OneOncology is expected to contribute more meaningfully in the back half of fiscal 2026 as synergies ramp.

COR faces several near-term challenges. Revenue guidance was lowered due to slower-than-expected GLP-1 growth, manufacturer price reductions, and faster brand conversions at a large mail-order customer. The company continues to navigate lost oncology customer volumes and weather-related disruptions to physician visits.

COR’s Consensus Estimate Movement

Image Source: Zacks Investment Research

Valuation AppealCardinal Health’s improving fundamentals, coupled with its ongoing transformation, position it as an attractive valuation opportunity with potential for multiple expansion as execution continues to strengthen. Accelerating earnings growth and margin recovery further support a favorable risk-reward profile.

The company currently trades at a Price to Earnings Forward 12 months (P/E F12M) ratio of 16.95, above the industry average of 15.75. CAH carries a Value Score of B.

CAH’s P/E F12M Chart

Image Source: Zacks Investment Research

Cencora, on the other hand, commands a premium valuation, reflecting its long-standing execution consistency and dominant position in pharmaceutical distribution and MSO services. This premium, however, may limit near-term upside relative to COR. The company currently trades at P/E F12M ratio of 14.25, below the industry average of 14.6. COR also carries a Value Score of B.

COR’s P/E F12M Chart

Image Source: Zacks Investment Research

ConclusionBoth Cardinal Health and Cencora are leveraging specialty pharmaceuticals and MSO platforms to drive long-term growth, making each a credible beneficiary of rising specialty drug demand. However, Cardinal Health currently appears to offer the more attractive investment case. Its accelerating specialty growth, expansion into multiple high-growth verticals, raised guidance, and improving execution create a stronger combination of upside and resilience. While Cencora remains a dependable operator with long-term potential, Cardinal Health’s broader growth runway makes it the better healthcare distributor stock to own right now.

While Cardinal Health currently carries a Zacks Rank #2 (Buy), Cencora has a Zacks Rank #3 (Hold). CAH carries a VGM score of A compared to C for COR, implying better growth potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Cencora today announced an agreement with Kite, a Gilead Company, to support the distribution of Kite's U.S. Food and Drug Administration (FDA)-approved CAR T-cell therapies, Yescarta® (axicabtagene ciloleucel) and Tecartus® (brexucabtagene autoleucel). The collaboration is designed to support efficient access to the cell therapies at the increasing number of authorized treatment centers in the U.S., including health systems and community oncology practices.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Cencora, Inc. ("Cencora" or the "Company") (NYSE: COR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Cencora and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 6, 2026, Cencora released its second quarter 2026 financial results, including revenue of $78.3 billion, missing consensus estimates by $2.68 billion, and reducing full year 2026 revenue growth guidance to 4% to 6% (from 7% to 9%).  In the accompanying earnings call, management revealed, among other things, that "manufactured list price reductions . . . represented a $2 billion revenue headwind in the quarter." 

On this news, Cencora's stock price fell $53.16 per share, or 17.4%, to close at $252.74 per share on May 6, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

It has been about a month since the last earnings report for Cencora (COR - Free Report) . Shares have added about 5.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cencora 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 catalysts for Cencora, Inc. before we dive into how investors and analysts have reacted as of late.

COR Q2 Earnings & Revenue Miss, FY26 EPS View RaisedCencora reported second-quarter fiscal 2026adjusted earnings per share (EPS) of $4.75, which missed the Zacks Consensus Estimate of $4.80 by 1%. The bottom line improved 7.5% year over year.

GAAP EPS was $8.40 compared with $3.68 in the year-ago period. The company’s second-quarter fiscal 2026 EPS included a $1.1 billion remeasurement gain related to the OneOncology acquisition.

Revenue DetailsRevenues totaled $78.4 billion, up 3.8% year over year. The top line missed the Zacks Consensus Estimate by 3%.

Segmental AnalysisU.S. Healthcare Solutions

Revenues in this segment totaled $68.8 billion, up 2.9% on a year-over-year basis. This improvement was driven by overall market growth on increased unit volume, including improved sales of GLP-1 drugs and specialty products. The revenue growth was partially offset by a decline in manufacturer prices related to certain brand pharmaceutical products, lower large mail order customers due to brand conversions, and loss of an oncology customer and a grocery customer last year.

Segmental operating income totaled $998.3 million, up 5.6% year over year. Higher gross profit (as a result of increased product sales and the February 2026 acquisition of OneOncology) contributed to the upside, partly offset by increased operating expenses and the loss of an oncology customer in 2025.

International Healthcare Solutions

This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.

Revenues amounted to $7.6 billion, up 13% year over year. The top line increased 7.2% at constant currency (cc).

Operating income totaled $175.8 million, up 13.7% on a reported basis and 12.9% at cc. The growth was driven by higher operating income at the European distribution business and the global specialty logistics business.

Other

Revenues in the Other segment amounted to $2.1 billion, reflecting an increase of 5.1% year over year. The growth at Profarma and MWI Animal Health businesses was partially offset by lower sales at the consulting services businesses.

Operating income totaled $91.6 million, down 1.3% due to lower operating income at the consulting services businesses, offset in part by an increase in operating income at the MWI Animal Health business.

Margin AnalysisCencora reported an adjusted gross profit of $3.37 billion, up 15.7% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 4.31%, up 45 basis points (bps) year over year.

The company recorded an adjusted operating income of $1.26 billion, up 6% year over year. As a percentage of revenues, the adjusted operating margin was 1.61%, which expanded 3 bps from the year-ago quarter’s level.

Financial UpdateCOR exited the fiscal second quarter with cash and cash equivalents worth $2.18 billion compared with $1.75 billion in the previous quarter.

Cumulative net cash used in operating activities totaled $966.5 million against cumulative net cash provided by operating activities of $632.5 million a year ago.

FY26 GuidanceThe company updated its outlook for fiscal 2026 earnings and revenues.

Adjusted EPS is now estimated to be in the $17.65-$17.95 range versus the earlier outlook of $17.45-$17.75.

Total revenues are now projected to rise 4-6%, lower than the previous guidance of 7-9%. Sales at the U.S. Healthcare Solutions segment are anticipated to grow in the range of 4-6% (previously 7-9%). For the International Healthcare solutions business, revenues are projected to rise 8-10% reportedly and 6-8% at cc (previously 7-9% reportedly and 6-8% at cc).

Adjusted operating income is expected to improve 12-14% for fiscal 2026 (previously 11.5-13.5%).

Operating income for the U.S. Healthcare Solutions segment is expected to improve 14-16%, while the International Healthcare Solutions segment is still estimated to grow 5-8%, reportedly as well as at cc.

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

VGM ScoresAt this time, Cencora has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a score of B on the value side, putting it in the second 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 Cencora has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerCencora is part of the Zacks Medical Services industry. Over the past month, Solventum (SOLV - Free Report) , a stock from the same industry, has gained 15%. The company reported its results for the quarter ended March 2026 more than a month ago.

Solventum reported revenues of $2.01 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $1.48 for the same period compares with $1.34 a year ago.

Solventum is expected to post earnings of $1.92 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.9%.

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

Shares of Cencora (COR +0.03%) and Stevanato Group (STVN 0.64%) are down more than 17% and 5%, respectively, so far this year. This is despite solid first-quarter earnings and steady business models.

Cencora, formerly known as AmerisourceBergen, is one of the dominant forces in the global pharmaceutical supply chain. Together with McKesson and Cardinal Health, it forms an effective triopoly that distributes roughly 90% of all medicines in the United States.

Italian-based Stevanato is a dominant company in the drug containment and delivery systems sector. The healthcare conglomerate manufactures prefilled syringes, vials, cartridges, and complex autoinjectors used by major pharmaceutical companies.

A few reasons to buy each stock:

Image source: Getty Images.

Cencora just upgraded its 2026 earnings guidance Cencora reported its second-quarter results on May 6, and a few weeks later, raised its full-year fiscal 2026 adjusted diluted earnings per share (EPS) guidance to a range of $17.70 to $17.90, up from the previous $17.65 to $17.90.

In the second quarter, Cencora reported revenue of $78.4 billion, up 3.8% year over year, primarily thanks to a 13% increase in its International Healthcare Solutions revenue and a 2.9% rise in U.S. Healthcare Solutions segment revenue.

EPS rose 128% over the same quarter a year ago, to $8.40, though much of that was an accounting gain related to the company's $7.4 billion purchase of OneOncology in February. A more accurate indication of profitability in this case would be its adjusted EPS of $4.75, which is still up 7.5% year over year.

Today's Change

(

0.03

%) $

0.09

Current Price

$

281.56

The company is taking advantage of its reduced share price The company has paid down its debt, and that is allowing it to reward shareholders with stock buybacks. It is on track to repurchase $1 billion in shares by the end of calendar 2026 and authorized an additional $2 billion share buyback in late May.

These buybacks reduce the overall share count, providing a structural lift to EPS and demonstrating management's high conviction in the stock's undervaluation.

The stock is undervalued considering its high-margin growth The biggest knock on traditional pharmaceutical wholesalers is their notoriously razor-thin profit margins, which usually hover around 1%. However, Cencora has been aggressively expanding into high-margin specialty pharmaceutical distribution and services, including its purchase of OneOncology, which provides higher-margin oncology treatments. In the most recent quarter, its gross profit margin climbed 45 basis points year over year to 4.31%.

The stock trades at a forward price-to-earnings (P/E) ratio of roughly 15.5, discounting it against its direct peers and even the broader healthcare sector, which is lower at 17.8  than it is historically.

Stevanato benefits as a pick-and-shovel GLP-1 company The biggest growth engine in global pharmaceuticals right now is the explosion of GLP-1 weight-loss and diabetes treatments such as Wegovy and Zepbound. While investors often crowd into the drugmakers themselves, Stevanato Group represents an exceptionally stable play on this multibillion-dollar market.

In the first quarter, GLP-1 products accounted for 21% to 22% of Stevanato's total revenue. Because these complex biologics require highly precise, specialized glass cartridges and automated assembly devices, Stevanato has secured multi-year medical devices supply agreements with the world's leading pharmaceutical companies, providing strong long-term revenue visibility.

Today's Change

(

-0.64

%) $

-0.11

Current Price

$

17.18

The company has found a path to higher margins Stevanato has moved beyond its base of glass vials and is seeing higher margins from growth in its High-Value Solutions segment, which includes proprietary, specialized containment systems such as its signature EZ-fill pre-fillable syringes and next-gen cartridges. Driven by the biologics boom, its HVS segment grew 17% year over year to account for 47% of the company's revenue. The company also expanded its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin by 150 basis points to 23.9% in its latest quarter, showing that it is becoming more profitable as it scales.

In the quarter, overall revenue was up 7% over the same period a year ago, to 273.6 million euros, while EPS was flat at 0.10 euros, thanks to heavy spending on upgrading its manufacturing plants in Indiana, Italy, and Germany. Now that those improvements are mostly complete, the company stands to benefit from greater efficiency.

With full-year 2026 guidance projecting revenue of up to 1.29 billion euros and adjusted EPS of 0.63 euros, up from 1.186 billion euros and 0.54 euros in 2025, the stock offers a highly attractive entry point as its massive manufacturing investments begin paying off.

Two good choices, neither of them wrong Neither one of these stocks is a flashy hyper-growth tech stock. They are highly defensive, stable healthcare companies with expansive economic moats. Cencora is seeing margin gains from its OneOncology purchase, but those gains haven't yet been reflected in investor sentiment.

Stevanato, as the lesser-known company, at least in the U.S., is being overlooked more and represents a better buy than Cencora, considering Stevanato's likely growth prospects from GLP-1 injectables.