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HARTSVILLE, S.C., July 22, 2026 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a Mid-cap Value global packaging company, today reported financial results for the second quarter ended June 28, 2026.

Summary:

Net sales in the second quarter were $1.9 billion Industrial Paper Packaging segment results exceeded expectations as North America uncoated recycled paperboard (URB) trade ton sales volume grew 6%EMEA/APAC paper cans sales volume up 9% Reported GAAP net income of $105 million, or $1.05 diluted earnings per share, compared to $493 million, or $4.96, in the same period in 2025, which included a gain from the sale of the Thermoformed and Flexibles Packaging and global Trident (“TFP”) business totaling $425 millionImproved quarterly adjusted net income by 10.6% to $151 million compared to the same period in 2025, and reported adjusted diluted earnings per share of $1.51Reported GAAP operating profit of $193 million in the second quarter of 2026, compared with $176 million in the same period in 2025Second quarter adjusted operating profit of $242 million and adjusted EBITDA of $324 millionGenerated a second quarter record operating cash flow of $301 million, and used $(67) million of operating cash flow year-to-date, which included approximately $103 million in one-time taxes paid in 2026 on gains from the sales of the divested TFP and ThermoSafe businesses in 2025 2026 Guidance:

Reaffirming full-year 2026 guidance for sales, adjusted EBITDA, adjusted earnings per share and operating cash flow as reported with our April first quarter results. *Note: References in today’s news release to 2025 consolidated “net sales,” “operating profit,” and “adjusted operating profit,” and Consumer Packaging “segment operating profit” and “segment adjusted EBITDA,” do not include results of TFP, which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale. “GAAP” refers to U.S. generally accepted accounting principles.

     Second Quarter2026Consolidated Results
 (Dollars in millions except per share data)
           Three Months Ended Six Months Ended GAAP ResultsJune 28, 2026June 29, 2025Change June 28, 2026June 29, 2025Change Net sales1 $1,885$1,910(1.3)% $3,562$3,620(1.6)% Net sales related to discontinued operations — —NM  — 321NM Operating profit1 193 1769.8%  320 3035.8% Operating profit related to discontinued operations — 626NM  — 664NM Net income attributable to Sonoco 105 493(78.7)%  172 548(68.5)% EPS (diluted) 1.05 4.96(78.8)%  1.73 5.51(68.6)%           Three Months Ended Six Months Ended Non-GAAP Results2June 28, 2026June 29, 2025Change June 28, 2026June 29, 2025Change Adjusted operating profit1$242$247(1.8)% $443$460(3.6)% Adjusted EBITDA 324 328(1.2)%  601 666(9.8)% Adjusted net income attributable to Sonoco 151 13610.6%  270 273(1.1)% Adjusted EPS (diluted) 1.51 1.3710.2%  2.71 2.74(1.1)% NM = Not Meaningful        1Excludes results of discontinued operations. 2See the Company’s definitions of non-GAAP financial measures, explanations as to why they are used, and reconciliations to the most directly comparable GAAP financial measures later in this release.   Second quarter 2026 net sales of $1.9 billion were down (1.3)% compared to the corresponding prior-year quarter, driven primarily by the November 3, 2025 divestiture of the ThermoSafe business. Additionally, net sales benefited from higher prices implemented to offset the effects of inflation and tariffs and from the favorable impact of foreign exchange rates, partially offset by lower volume/mix. GAAP operating profit for the second quarter was up 9.8% to $193 million compared to the corresponding prior-year quarter, due to productivity savings from fixed cost reduction initiatives and procurement savings. These positive factors were offset by the absence of operating profit from the divested ThermoSafe business and lower volume/mix. Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were 27.8% and 23.8%, respectively, in the second quarter, compared to 37.3% and 25.6%, respectively, in the same period in 2025. “Our Sonoco team delivered solid second quarter results that met our expectations and exceeded consensus estimates as productivity and cost control initiatives helped offset global inflation headwinds stemming from higher logistics, chemicals, resins and other raw material costs,” said Howard Coker, President and Chief Executive Officer. “Results from our Industrial Paper Packaging segment exceeded expectations with operating profit up 4% during the period and up 29% from the first quarter. The Industrial segment improvement was primarily driven by productivity gains which more than offset price/cost headwinds. North America URB trade tons grew 6% which boosted mill utilization to 95%, while the segment’s volume/mix was flat. Our Consumer Packaging segment operating profit declined approximately 5% during the period but was up 22% sequentially from the first quarter. Productivity and cost containment initiatives boosted Consumer segment results. Paper can volumes were up 9% in EMEA/APAC due to rising snack demand, but overall segment volumes were down 1.8% driven primarily by lower metal aerosol cans and adhesive and sealant tube demand.”

Paul Joachimczyk, Sonoco’s Chief Financial Officer, added, “Our businesses continue to demonstrate tremendous cash-generating capabilities, delivering a record second-quarter operating cash flow of $301 million and free cash flow of $237 million, increases of 56% and 139%, respectively, compared to the prior year. These results reflect disciplined working capital management and the earnings power of our portfolio. Year-to-date operating cash flow includes approximately $103 million of one-time tax payments related to gains from our 2025 divestitures, highlighting that our underlying cash flow performance is strong and supports our confidence in reaffirming full-year guidance.”

Second Quarter 2026 Segment Results
(Dollars in millions except per share data)

Sonoco reports its financial results in two reportable segments: Consumer Packaging (“Consumer”) and Industrial Paper Packaging (“Industrial”).

As previously announced, effective January 1, 2026, results of the Company’s industrial and specialty plastics business (“Industrial Plastics”), the only business remaining in the All Other group of businesses following the November 2025 divestiture of ThermoSafe, are now included in the Industrial segment. Therefore, the Company no longer provides results of the All Other group of businesses.

  Three Months Ended Six Months Ended ConsumerJune 28, 2026 June 29, 2025Change June 28, 2026 June 29, 2025Change            Net sales1$1,242  $1,227 1.2% $2,339  $2,294 2.0% Segment operating profit1$152  $160 (5.4)% $277  $301 (7.9)% Segment operating profit margin1 12.2%  13.1%   11.9%  13.1%  Segment Adjusted EBITDA1, 2$207  $213 (3.1)% $383  $403 (4.9)% Segment Adjusted EBITDA margin1, 2 16.6%  17.4%   16.4%  17.6%  Consumer segment net sales grew 1.2%, reflecting successful pricing actions to recover inflation and tariff-related costs, along with favorable foreign exchange. Volume trends remained below prior-year levels.Solid manufacturing productivity improvements and disciplined cost management helped mitigate the impact of softer volumes on segment operating profit and adjusted EBITDA.   Three Months Ended Six Months Ended IndustrialJune 28, 2026 June 29, 2025Change June 28, 2026 June 29, 2025Change            Net sales3$643  $617 4.2% $1,223  $1,205 1.5% Segment operating profit3$89  $86 4.0% $159  $162 (2.2)% Segment operating profit margin 13.9%  13.9%   13.0%  13.5%  Segment Adjusted EBITDA2, 3$122  $119 2.9% $222  $226 (1.9)% Segment Adjusted EBITDA margin2 19.0%  19.2%   18.1%  18.8%  Industrial segment net sales increased 4.2% to $643 million, reflecting successful pricing actions and favorable foreign exchange.Segment operating profit margin remained resilient at 13.9%, consistent with the prior year, while adjusted EBITDA margin of 19.0% benefited from strong productivity initiatives related to procurement savings and fixed cost reduction that helped offset higher raw material, freight and other operating costs. 1 Excludes results of discontinued operations.
2 Segment adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company’s reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.
3 Net sales, segment operating profit, and segment adjusted EBITDA for the three months ended June 29, 2025 include results from Industrial Plastics of $29 million, $5 million, and $6 million, respectively, previously included in All Other, to provide clearer year-over-year comparisons.

Balance Sheet and Cash Flow Highlights

The Company maintained strong liquidity of $1.3 billion at June 28, 2026, consisting of $1.1 billion of available borrowing capacity under its revolving credit facility and cash on hand.Cash and cash equivalents were $169 million as of June 28, 2026, compared to $378 million, as of December 31, 2025.Total debt and net debt were $4.5 billion and $4.3 billion, respectively, as of June 28, 2026, primarily reflecting seasonal working capital requirements within the Company's metal packaging business.Cash flow from operating activities for the period ended June 28, 2026 was a use of $(67) million, compared to a use of $(15) million in the same period of 2025. The main drivers of the year-over-year change in operating cash flow were a one-time payment of taxes in 2026 on the gains from the 2025 divestitures of the TFP and ThermoSafe businesses and the seasonal need for working capital for the Company’s metal packaging business.Capital expenditures, net of proceeds from sales of fixed assets, for 2026 were $124 million, compared to $186 million last year.Free Cash Flow for the period ended June 28, 2026 improved to $(191) million compared to $(201) million in the same period in 2025, reflecting the factors impacting operating cash flow discussed above.The Company returned $106 million to shareholders through dividends during the first half of 2026, compared to $104 million in the prior year period. Guidance(1)         

Full-Year 2026

Net Sales: $7.25 billion to $7.75 billion, in line with previous guidanceAdjusted EPS(2): Maintaining annual adjusted EPS guidance of $5.80 to $6.20 per diluted share and continuing to expect results toward the low end of the rangeAdjusted EBITDA(2): Guidance of $1.25 billion to $1.35 billion is unchanged from previous guidanceCash flow from operating activities: Guidance remains unchanged at $700 million to $800 million, including the effect of payments of prior year taxes on gains from divestitures and restructuring costs Commenting on Sonoco’s outlook, Howard Coker said, “Entering the second half of the year we are encouraged that several key indicators are strengthening in our favor as we begin our busiest period of the year. Demand for our URB in North America is very strong as a result of entering new markets, such as saturating URB for laminated products, along with share gains that have expanded our backlogs and require that we import paper from our Europe and Latin America mills through the third quarter. In our Consumer segment, projected paper can growth in Europe, Asia, and South America has us exploring additional capacity expansion plans while customer promotions and new product launches are projected to lift both paper and metal can volumes as we enter the important seasonal pack season in both the U.S. and EMEA. While we remain mindful of external macroeconomic risks, we are confident in our strategy, portfolio and ability to execute through economic cycles.”

Joachimczyk added, “As pricing actions and contract resets take effect, we expect improved margin performance across our portfolio. Combined with ongoing productivity initiatives, disciplined cost management and execution of our profitability performance plan, we remain confident in achieving our long-term goal of improving margins by 200 basis points by the end of 2028.”

(1)Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company’s effective tax rate, as well as other risks and uncertainties, including those related to the integration of Eviosys and described below, actual results could vary substantially. Further information can be found in the section entitled “Forward-looking Statements” in this release.

(2) Full year 2026 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company’s future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance and net debt/Adjusted EBITDA targets to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.        

Earnings Conference Call Webcast
Sonoco’s management will host a conference call to discuss its second quarter 2026 results on Thursday, July 23, 2026, at 8:00 a.m. Eastern Time. The Company will provide prepared remarks, a presentation and host a question-and-answer session during the call. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at https://investor.sonoco.com/. A webcast replay will be available on the Company’s website for at least 30 days following the call.

  Time:Thursday, July 23, 2026, at 8:00 a.m. Eastern Time
  Audience
Dial-In:To listen via telephone, please register in advance at:
https://events.q4inc.com/analyst/818434126?pwd=xd1mxKQrAfter registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.

  Webcast Link:https://events.q4inc.com/attendee/818434126  Contact Information: 
Roger Schrum
Head of Investor Relations and Communications
[email protected]        
843-339-6018

About Sonoco
Sonoco (NYSE: SON) is a Mid-cap Value global packaging company. With sales of $7.5 billion from continuing operations in 2025, the Company has approximately 22,000 employees working in 265 operations in 37 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. A Fortune 500 company, Sonoco was proudly named one of the World’s Most Admired Companies by Fortune in 2026 as well as one of America’s Most Trustworthy and Responsible Companies by Newsweek and USA Today’s Climate Leaders in 2025. For more information on the Company, visit our website at www.sonoco.com.

Forward-looking Statements
Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward- looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “achieve,” “believe,” “can,” “continue,” “continuing,” “could,” “deliver,” “enhance,” “expect,” “forecast,” “focus,” “future,” “goal,” “guidance,” “improvement,” “likely,” “may,” “might,” “ongoing,” “outlook,” “plan,” “projected,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” “working,” or the negative thereof, and similar expressions identify forward-looking statements.

Forward-looking statements in this communication include statements regarding, but not limited to: the Company’s future operating and financial performance, including full year 2026 outlook and the anticipated drivers thereof and cash flow in 2026; the Company’s ability to improve its competitive position and drive cost savings, including through its profitability performance plan; price/cost, customer demand and volume outlook; the continued focus on planned structural and operational savings actions to achieve long-term margin improvement goals; the effectiveness of and expected benefits from the Company’s strategy and strategic initiatives, including with respect to sustainable growth, margin improvement, and capital allocation, and focused metal and paper packaging portfolio; the effects of the changing macroeconomic and geopolitical environment, including trade policies and tariffs, market conditions, inflation and interest costs on the Company, its supply chain and its customers, and the Company’s ability to manage risks related thereto; and the Company’s ability to execute through economic cycles.

Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.

Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements.

Such risks, uncertainties and assumptions include, without limitation, those related to: the Company’s ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management’s attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; lower-than-projected financial performance of the Company’s European business, including as a result of loss or reduction in business from key customers, changes in our pricing model, or adverse changes in the macroeconomic or competitive environment in European markets; risks related to the impairment of goodwill and other intangibles; the operation of new manufacturing capabilities; the Company’s ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and in the Middle East, the potential escalation of tensions between China and Taiwan and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations; fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the impact of changing laws and regulations, in the United States, on the Company; the Company’s ability to meet its environmental, sustainability and similar goals and other social and governance goals, including challenges in implementation thereof; natural disasters, severe weather events, and other unexpected disruptions to facility operations; and the other risks, uncertainties and assumptions discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.

References to our Website Address

References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission’s rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(Dollars and shares in thousands except per share data)         Three Months Ended Six Months Ended  June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025Net sales $1,885,485  $1,910,441  $3,561,927  $3,619,669 Cost of sales  1,493,108   1,504,164   2,823,922   2,859,705 Gross profit  392,377   406,277   738,005   759,964 Selling, general and administrative expenses  200,247   218,775   401,785   427,838 Restructuring/Asset impairment charges, net  1,933   9,752   17,066   23,333 Gain/(Loss) on divestiture of business  2,640   (2,083)  775   (6,266)Operating profit  192,837   175,667   319,929   302,527 Non-operating pension costs  2,920   2,982   5,416   6,103 Interest expense  45,478   64,367   89,972   120,394 Interest income  4,064   4,122   12,715   11,470 Other expense, net  (6,191)  (6,559)  (18,499)  (13,076)Income from continuing operations before income taxes  142,312   105,881   218,757   174,424 Provision for income taxes  39,551   39,500   49,061   60,647 Income before equity in earnings of affiliates  102,761   66,381   169,696   113,777 Equity in earnings of affiliates, net of tax  2,263   2,270   2,953   4,191 Net income from continuing operations  105,024   68,651   172,649   117,968 Net income from discontinued operations  —   424,548   —   429,720 Net income  105,024   493,199   172,649   547,688 Net (income)/loss from continuing operations attributable to noncontrolling interests  (130)  224   (154)  164 Net income attributable to Sonoco $104,894  $493,423  $172,495  $547,852          Weighted average common shares outstanding – diluted  99,781   99,539   99,748   99,453          Diluted earnings from continuing operations per common share $1.05  $0.69  $1.73  $1.19 Diluted earnings from discontinued operations per common share  —   4.27   —   4.32 Diluted earnings attributable to Sonoco per common share $1.05  $4.96  $1.73  $5.51 Dividends per common share $0.54  $0.53  $1.07  $1.05   CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited)(Dollars and shares in thousands except per share data)       Three Months Ended Six Months Ended  June 29, 2025 June 29, 2025     Net sales$— $320,678Cost of sales —  250,854Gross profit —  69,824Selling, general, and administrative expenses —  31,607Restructuring/Asset impairment charges, net —  426Gain on divestiture of business 625,773  625,773Operating profit 625,773  663,564Other expense, net —  182Interest expense —  24,911Interest income —  281Income from discontinued operations before income taxes 625,773  638,752Provision for income taxes 201,225  209,032Net income from discontinued operations 424,548  429,720Net income from discontinued operations attributable to noncontrolling interests —  —Net income attributable to discontinued operations$424,548 $429,720Weighted average common shares outstanding – diluted 99,539  99,453Diluted earnings from discontinued operations per common share$4.27 $4.32  FINANCIAL SEGMENT INFORMATION (Unaudited)(Dollars in thousands)       Three Months Ended Six Months Ended   June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025Net sales:        Consumer Packaging$1,241,839  $1,227,033  $2,338,914  $2,293,626  Industrial Paper Packaging 643,646   617,661   1,223,013   1,205,193  Total reportable segments 1,885,485   1,844,694   3,561,927   3,498,819  All Other —   65,747   —   120,850  Net sales$1,885,485  $1,910,441  $3,561,927  $3,619,669                    Operating profit:        Consumer Packaging$151,705  $160,353  $277,354  $301,124  Industrial Paper Packaging 89,379   85,934   158,625   162,265  Segment operating profit 241,084   246,287   435,979   463,389  All Other —   8,406   —   15,125  Corporate        Restructuring/Asset impairment charges, net (1,933)  (9,752)  (17,066)  (23,333) Amortization of acquisition intangibles (45,570)  (44,193)  (89,890)  (86,154) Gain/(Loss) on divestiture of business 2,640   (2,083)  775   (6,266) Acquisition, integration, and divestiture-related costs (2,083)  (11,161)  (8,421)  (38,427) Other operating charges, net (1,301)  (11,837)  (1,448)  (21,807) Operating profit$192,837  $175,667  $319,929  $302,527   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollars in thousands)       Six Months Ended   June 28, 2026 June 29, 2025      Net income$172,649  $547,688 Net loss/(gain) on divestiture of business, disposition of assets, and asset impairments 4,248   (612,543)Depreciation and amortization 256,125   250,967 Pension and postretirement plan contributions, net of non-cash expense (2,556)  (1,727)Changes in working capital (301,117)  (263,420)Changes in tax accounts (98,182)  142,031 Other operating activity (98,475)  (77,649)Net cash used by operating activities (67,308)  (14,653)      Purchases of property, plant and equipment, net (123,873)  (186,393)Proceeds from the sale of business, net1 (13,076)  1,814,930 Cost of acquisitions, net of cash acquired2 —   16,528 Net debt proceeds/(repayments) 116,078   (1,668,876)Cash dividends (105,790)  (103,558)Payments for share repurchases (7,011)  (10,576)Other (outflow)/inflow, including effects of exchange rates on cash (8,770)  39,338 Net decrease in cash and cash equivalents (209,750)  (113,260)Cash and cash equivalents at beginning of period 378,398   443,060 Cash and cash equivalents at end of period$168,648  $329,800 12026 includes payments of $15,211 and $1,865 to the buyers of TFP and ThermoSafe, respectively, for final net working capital settlements on these 2025 divestitures.22025 includes a cash receipt of $16,528 for the final net working capital settlement related to the 2024 acquisition of Eviosys.  CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollars in thousands)   June 28, 2026 December 31, 2025Assets   Current Assets:    Cash and cash equivalents$168,648 $378,398 Trade accounts receivable, net of allowances 1,011,392  842,810 Other receivables 184,121  178,755 Inventories, net 1,255,419  1,121,009 Prepaid expenses 167,778  125,352  Total Current Assets 2,787,358  2,646,324Property, plant and equipment, net 2,707,744  2,797,800Goodwill 2,463,738  2,511,611Other intangible assets, net 2,533,392  2,683,474Right of use asset-operating leases 302,699  307,450Deferred income taxes and other assets 179,152  215,675  Total Assets$10,974,083 $11,162,334Liabilities and Equity   Current Liabilities:    Payable to suppliers, accrued expenses and other payables$1,794,492 $1,861,904 Notes payable and current portion of long-term debt 968,752  537,952 Accrued taxes 38,583  128,821  Total Current Liabilities 2,801,827  2,528,677Long-term debt, net of current portion 3,484,464  3,788,973Noncurrent operating lease liabilities 259,244  263,192Pension and other postretirement benefits 169,527  177,976Deferred income taxes and other liabilities 660,498  771,684  Total Liabilities 7,375,560  7,530,502  Total Equity 3,598,523  3,631,832  Total Liabilities and Equity$10,974,083 $11,162,334 NON-GAAP FINANCIAL MEASURES

The Company’s results, determined in accordance with U.S. generally accepted accounting principles, are referred to as “as reported” or “GAAP” results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP (referred to as “non-GAAP financial measures”) to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term “Adjusted” (for example, “Adjusted Operating Profit,” “Adjusted Net Income Attributable to Sonoco,” and “Adjusted Diluted EPS”), reflect adjustments to the Company’s GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to:

restructuring/asset impairment charges1;acquisition, integration and divestiture-related costs;gains or losses from the divestiture of businesses;losses from the early extinguishment of debt;non-operating pension costs;amortization expense on acquisition intangibles;changes in last-in, first-out (“LIFO”) inventory reserves;certain income tax events and adjustments;derivative gains/losses;other non-operating income and losses; andcertain other items, if any. 1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company’s restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.

The Company’s management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.

In addition to the “Adjusted” results described above, the Company also uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, and Net Debt. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Segment Adjusted EBITDA is defined as segment operating profit plus depreciation and amortization expense and equity in earnings of affiliates, net of tax. Segment Adjusted EBITDA Margin is defined as Segment Adjusted EBITDA divided by segment net sales. Net Debt is defined as the total of the Company’s short and long-term debt less cash and cash equivalents.

Segment Adjusted EBITDA is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.

Segment results, which are reviewed by the Company’s management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments, except for costs related to discontinued operations.

The Company’s non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles.

The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.

Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.

To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company’s results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure.

Free Cash Flow

The Company uses the non-GAAP financial measure of “Free Cash Flow,” which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations.

QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the three-month periods ended June 28, 2026 and June 29, 2025.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

 For the three-month period ended June 28, 2026Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPSAs Reported (GAAP)$192,837 $142,312 $39,551 $104,894 $1.05 Acquisition, integration and divestiture-related costs1 2,083  2,083  (199) 2,282  0.02 Changes in LIFO inventory reserves 1,154  1,154  285  869  0.01 Amortization of acquisition intangibles 45,570  45,570  10,038  35,532  0.36 Restructuring/Asset impairment charges, net 1,933  1,940  17  1,930  0.02 Gain on divestiture of business2 (2,640) (2,640) (650) (1,990) (0.02)Non-operating pension costs —  2,920  749  2,171  0.02 Net losses from derivatives 254  254  63  191  — Other adjustments 1,231  1,231  (3,417) 4,648  0.05 Total adjustments 49,585  52,512  6,886  45,633  0.46 Adjusted$242,422 $194,824 $46,437 $150,527 $1.51 Due to rounding, individual items may not sum appropriately.    1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys.
2 Gain on divestiture of business reflects the gain of $2,640 from the sale of a recycling facility in Savannah, Georgia.

   For the three-month period ended June 29, 2025Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPSAs Reported (GAAP)1$175,667$105,881$39,500 $493,423 $4.96 Acquisition, integration and divestiture-related costs2 11,161 11,161 2,120  9,041  0.09 Changes in LIFO inventory reserves 1,193 1,193 291  902  0.01 Amortization of acquisition intangibles 44,193 44,193 9,401  34,792  0.35 Restructuring/Asset impairment charges, net 9,752 9,752 2,197  7,173  0.07 Loss/(Gain) on divestiture of business 2,083 2,083 514  (422,979) (4.25)Non-operating pension costs — 2,982 761  2,221  0.02 Net losses from derivatives 2,154 2,154 548  1,606  0.02 Other adjustments3 735 735 (9,201) 9,936  0.10 Total adjustments 71,271 74,253 6,631  (357,308) (3.59)Adjusted$246,938$180,134$46,131 $136,115 $1.37 Due to rounding, individual items may not sum appropriately.    1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $625,773, $625,773 and $201,225, respectively.
2 Acquisition, integration and divestiture-related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and the divestiture of TFP, which was completed on April 1, 2025.
3 Other adjustments include discrete tax items primarily related to tax rate changes on accumulated other comprehensive income (“AOCI”) and rate differences between non-US jurisdictions related to acquisitions/divestitures.

   Adjusted EBITDA1   Three Months EndedDollars in thousandsJune 28, 2026June 29, 2025Net income attributable to Sonoco$104,894 $493,423 Adjustments:  Interest expense 45,478  64,367 Interest income (4,064) (4,122)Provision for income taxes 39,551  240,725 Depreciation and amortization 131,096  129,475 Non-operating pension costs 2,920  2,982 Net income/(loss) attributable to noncontrolling interests 130  (224)Restructuring/Asset impairment charges, net 1,933  9,752 Changes in LIFO inventory reserves 1,154  1,193 Gain on divestiture of business (2,640) (623,690)Acquisition, integration and divestiture-related costs 2,083  11,161 Net loss from derivatives 254  2,154 Other non-GAAP adjustments 1,231  735 Adjusted EBITDA$324,020 $327,931  1 For the three-month period ended June 29, 2025, adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

 Segment Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Three Months Ended June 28, 2026        Dollars in thousandsConsumerIndustrialCorporateTotalSegment and Total Operating Profit1$151,705 $89,379 $(48,247)$192,837 Adjustments:    Depreciation and amortization2 54,675  30,851  45,570  131,096 Other expense, net3 —  —  (6,191) (6,191)Equity in earnings of affiliates, net of tax 276  1,987  —  2,263 Restructuring/Asset impairment charges, net4 —  —  1,933  1,933 Changes in LIFO inventory reserves5 —  —  1,154  1,154 Acquisition, integration and divestiture-related costs6 —  —  2,083  2,083 Gain on divestiture of business7 —  —  (2,640) (2,640)Net loss from derivatives8 —  —  254  254 Other non-GAAP adjustments —  —  1,231  1,231 Segment Adjusted EBITDA$206,656 $122,217 $(4,853)$324,020      Net Sales$1,241,839 $643,646   Segment Operating Profit Margin 12.2% 13.9%  Segment Adjusted EBITDA Margin 16.6% 19.0%   1As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $40,507 and the Industrial segment of $5,063.
3These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
4Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $(170) and the Industrial segment of $1,237.
5Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,143 and the Industrial segment of $11.
6Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $2,631and the Industrial segment of $152.
7Included in Corporate is a gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, part of the Industrial segment.
8Included in Corporate are net losses from derivatives associated with the Consumer segment of $12 and the Industrial segment of $242.

 Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Three Months Ended June 29, 2025Excludes results of discontinued operations     Dollars in thousandsConsumerIndustrialAll OtherCorporateTotalSegment and Total Operating Profit$160,353 $85,934 $8,406 $(79,026)$175,667 Adjustments:     Depreciation and amortization1 52,801  30,711  1,770  44,193  129,475 Other expense, net2 —  —  —  (6,559) (6,559)Equity in earnings of affiliates, net of tax 170  2,100  —  —  2,270 Restructuring/Asset impairment charges, net3 —  —  —  9,752  9,752 Changes in LIFO inventory reserves4 —  —  —  1,193  1,193 Acquisition, integration and divestiture-related costs5 —  —  —  11,161  11,161 Loss on divestiture of business6 —  —  —  2,083  2,083 Net loss from derivatives7 —  —  —  2,154  2,154 Other non-GAAP adjustments —  —  —  735  735 Segment Adjusted EBITDA$213,324 $118,745 $10,176 $(14,314)$327,931       Net Sales$1,227,033 $617,661 $65,747   Segment Operating Profit Margin 13.1% 13.9% 12.8%  Segment Adjusted EBITDA Margin 17.4% 19.2% 15.5%   1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $38,333, the Industrial segment of $5,655, and the All Other group of businesses of $205.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $1,479, the Industrial segment of $8,228, and a gain in the All Other group of businesses of $5.
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,193.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $1,137 and the Industrial segment of $213.
6Included in Corporate is a loss on divestiture of business of $2,083 associated with the Industrial segment related to the sale of a recycling operation in Asheville, North Carolina.
7Included in Corporate are net losses from derivatives associated with the Consumer segment of $208, the Industrial segment of $1,864, and the All Other group of businesses of $82.

YEAR-TO-DATE RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the six-month periods ended June 28, 2026 and June 29, 2025.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

 For the six-month period ended June 28, 2026Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPSAs Reported (GAAP)$319,929 $218,757 $49,061 $172,495 $1.73 Acquisition, integration and divestiture-related costs1 8,421  8,421  1,347  7,074  0.07 Changes in LIFO inventory reserves 5,521  5,521  1,367  4,154  0.04 Amortization of acquisition intangibles 89,890  89,890  19,800  70,090  0.70 Restructuring/Asset impairment charges, net 17,066  17,066  3,505  13,573  0.14 Gain on divestiture of business, net2 (775) (775) (188) (587) (0.01)Other expense, net3 —  6,592  —  6,592  0.07 Non-operating pension costs —  5,416  1,394  4,022  0.04 Net loss from derivatives 167  167  41  126  — Other adjustments4 3,027  3,027  10,687  (7,660) (0.07)Total adjustments 123,317  135,325  37,953  97,384  0.98 Adjusted$443,246 $354,082 $87,014 $269,879 $2.71 Due to rounding, individual items may not sum appropriately.    1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the November 2025 divestiture of ThermoSafe.
2 Gain on divestiture of business, net reflects the gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, partially offset by a charge of $1,865 from the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.
3 Amount relates to certain pre-acquisition liabilities related to the SMP EMEA business.
4 Other adjustments to the provision for income taxes include a benefit of $14,232 related to a provision-to-return adjustment for a retroactive U.S. tax election.

   For the six-month period ended June 29, 2025Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPSAs Reported (GAAP)1$302,527 $174,424 $60,647 $547,852 $5.51 Acquisition, integration and divestiture-related costs2 38,427  38,427  8,757  39,336  0.40 Changes in LIFO inventory reserves 1,755  1,755  433  1,322  0.01 Amortization of acquisition intangibles 86,154  86,154  19,005  66,936  0.67 Restructuring/Asset impairment charges, net 23,333  23,333  5,397  17,888  0.18 Loss/(Gain) on divestiture of business3 6,266  6,266  886  (419,168) (4.21)Non-operating pension costs —  6,103  1,559  4,544  0.05 Net gains from derivatives (795) (795) (196) (599) (0.01)Other adjustments4 1,994  1,994  (9,804) 14,844  0.14 Total adjustments 157,134  163,237  26,037  (274,897) (2.77)Adjusted$459,661 $337,661 $86,684 $272,955 $2.74 Due to rounding, individual items may not sum appropriately.    1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $663,564, $638,752, and $209,032, respectively.
2 Acquisition, integration and divestiture related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.
3 Loss/(gain) on divestiture of business primarily consists of the gain on the sale of the Company’s Thermoformed and Flexibles Packaging business, included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income.
4 Other adjustments include discrete tax items primarily related to tax rate changes on AOCI and rate differences between non-U.S. jurisdictions related to acquisitions/divestitures.

   Adjusted EBITDA1   Six Months EndedDollars in thousandsJune 28, 2026June 29, 2025   Net income attributable to Sonoco$172,495 $547,852 Adjustments:  Interest expense 89,972  145,305 Interest income (12,715) (11,751)Provision for income taxes 49,061  269,679 Depreciation and amortization 256,125  250,967 Non-operating pension costs 5,416  6,103 Non-operating other expense 6,592  — Net income/(loss) attributable to noncontrolling interests 154  (164)Restructuring/Asset impairment charges, net 17,066  23,759 Changes in LIFO inventory reserves 5,521  1,755 Gain on divestiture of business (775) (619,507)Acquisition, integration and divestiture-related costs 8,421  51,103 Other income, net —  — Net loss/(gain) from derivatives 167  (795)Other non-GAAP adjustments 3,027  1,381 Adjusted EBITDA$600,527 $665,687     1For the six-month period ended June 29, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to segment adjusted EBITDA.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Six Months Ended June 28, 2026Excludes results of discontinued operationsDollars in thousandsConsumerIndustrialCorporateTotalSegment and Total Operating Profit1$277,354 $158,625 $(116,050)$319,929 Adjustments:    Depreciation and amortization2 105,625  60,610  89,890  256,125 Other expense, net3 —  —  (11,907) (11,907)Equity in earnings of affiliates, net of tax 274  2,679  —  2,953 Restructuring/Asset impairment charges, net4 —  —  17,066  17,066 Changes in LIFO inventory reserves5 —  —  5,521  5,521 Acquisition, integration and divestiture-related costs6 —  —  8,421  8,421 Gain on divestiture of business7 —  —  (775) (775)Net loss from derivatives8 —  —  167  167 Other non-GAAP adjustments —  —  3,027  3,027 Segment Adjusted EBITDA$383,253 $221,914 $(4,640)$600,527      Net Sales$2,338,914 $1,223,013   Segment Operating Profit Margin 11.9% 13.0%  Segment Adjusted EBITDA Margin 16.4% 18.1%   1 As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $79,875 and the Industrial segment of $10,015.
3 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within the Consumer segment.
4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $8,937 and the Industrial segment of $7,196.
5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $4,996   and the Industrial segment of $525.
6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $3,274 and the Industrial segment of $152.
7 Included in Corporate is a gain of $2,640 from the sale of a recycling facility in Savannah, Georgia, part of the Industrial segment, partially offset by a charge of $1,865 from the final net working capital settlement related to the divestiture of ThermoSafe, previously part of the All Other group of businesses.
8 Included in Corporate are net losses from derivatives associated with the Consumer segment of $4 and the Industrial segment of $163.

 Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin ReconciliationFor the Six Months Ended June 29, 2025Excludes results of discontinued operationsDollars in thousandsConsumerIndustrialAll OtherCorporateTotalSegment and Total Operating Profit$301,124 $162,265 $15,125 $(175,987)$302,527 Adjustments:     Depreciation and amortization1 101,756  59,868  3,500  86,154  251,278 Other expense, net2 —  —  —  (13,076) (13,076)Equity in earnings of affiliates, net of tax 119  4,072  —  —  4,191 Restructuring/Asset impairment charges, net3 —  —  —  23,333  23,333 Changes in LIFO inventory reserves4 —  —  —  1,755  1,755 Acquisition, integration and divestiture-related costs5 —  —  —  38,427  38,427 Loss on divestiture of business6 —  —  —  6,266  6,266 Net gains from derivatives7 —  —  —  (795) (795)Other non-GAAP adjustments —  —  —  1,994  1,994 Segment Adjusted EBITDA$402,999 $226,205 $18,625 $(31,929)$615,900       Net Sales$2,293,626 $1,205,193 $120,850   Segment Operating Profit Margin 13.1% 13.5% 12.5%  Segment Adjusted EBITDA Margin 17.6% 18.8% 15.4%   1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $74,835, the Industrial segment of $10,920, and All Other of $399.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $2,709, the Industrial segment of $20,726, and All Other of $10.
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,755.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $21,209 and the Industrial segment of $431.
6Included in Corporate are net losses from the divestiture of businesses within the Industrial segment of $6,266, including a loss of $2,083 from the sale of a recycling facility in Asheville, N.C. and losses totaling $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.
7Included in Corporate are net gains from derivatives associated with the Consumer segment of $(76), the Industrial segment of $(688), and All Other of $(31).

FREE CASH FLOW

The reconciliation of the GAAP measure “Net cash used by operating activities” to the non-GAAP measure “Free cash flow” is set forth in the table below:

 Six Months Ended June 28, 2026 June 29, 2025    Net cash used by operating activities$(67,308) $(14,653)Purchases of property, plant and equipment (125,756)  (187,483)Proceeds from the sale of assets, net 1,883   1,090 Net capital expenditures (123,873)  (186,393)Free cash flow$(191,181) $(201,046)    

NEW YORK, July 22, 2026 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced that at a meeting held on July 20, 2026 its Board of Directors (the "Board") resolved to suspend the Company's future quarterly cash dividend. The Board's determination reflects its ongoing review of the Company's capital-allocation priorities and its focus on deploying capital to support long-term value creation for shareholders, including reducing debt, minimizing related interest expense and strengthening financial flexibility.

July 22, 2026 16:05 ET  | Source: Oddity Tech Ltd.

NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (NASDAQ: ODD) today announced that it will release its second quarter 2026 financial results before the market open on Wednesday, September 9, 2026, to be followed by a conference call at 8:30 a.m. Eastern Time.

Conference Call Details:

To participate in the conference call, please dial 1-877-407-9208 (US) or 1-201-493-6784 (international). To access the call, please reference the company name and call title: ODDITY Second Quarter 2026 Earnings Call. A webcast of the call will be accessible on the Investors section of ODDITY’s website at https://investors.oddity.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial 1-844-512-2921 (US) or 1-412-317-6671 (international). The access code for the replay is 13761986. An archive of the webcast will be available on the Investors section of ODDITY’s website for seven days following the call.

About ODDITY

ODDITY is a consumer tech company that builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company serves approximately 68 million users with its AI-driven online platform, deploying data science to identify consumer needs, and developing solutions in the form of beauty and wellness products. ODDITY owns IL MAKIAGE, SpoiledChild and METHODIQ. The company operates with business headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston.

Contacts

Press:

[email protected]

Investor:

[email protected]

2026 Office Leasing Volume Reaches 1.5M Square Feet July 22, 2026 16:10 ET  | Source: SL Green Realty Corp

NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that a leading AI tenant has signed a new 10-year lease covering 98,420 square feet for the entire 11th floor at 11 Madison Avenue, demonstrating the on-going demand for premier office space in Midtown South.

With this transaction, SL Green has signed office leases totaling 1,478,673 square feet to date in 2026, while maintaining a current pipeline of over 900,000 square feet.

“We are excited to welcome another premier tenant to the already impressive tenant roster at 11 Madison Avenue which includes SONY, UBS, Jim Beam Brands, WME and Pinterest,” said Steven Durels, Executive Vice President, Director of Leasing and Real Property at SL Green. “This new lease is testament to the building’s status as one of the most prominent properties in the exciting Midtown South neighborhood and further evidence of the incremental demand that AI and technology tenants are bringing to an already strong leasing market.”

11 Madison Avenue is fully leased after signing an additional nearly 300,000 square feet of office leases from the beginning of 2025 to other AI and technology tenants which include Pinterest, Tempus AI and Clay Labs. SL Green’s One Madison Avenue, adjacent to 11 Madison Avenue, introduced approximately 1.4 million square feet of new office inventory to the Madison Square area and is also fully leased with industry-leading AI and technology tenants including Harvey AI, IBM, Palo Alto Networks, and Sigma Computing.

The tenant was represented by Justin Haber and Kyle Riker of JLL. SL Green was represented by Brian Waterman, Brent Ozarowski and Eric Harris of Newmark.

About SL Green Realty Corp.

SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of June 30, 2026, SL Green held interests in 54 buildings totaling 30.6 million square feet, which included ownership interests in 29.2 million square feet and 1.4 million square feet securing debt and preferred equity investments, excluding fund investments, and managed 4 buildings totaling 0.9 million square feet owned by third parties.

Forward Looking Statement

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
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SLG-LEAS

Alstom SA (ALSMY) Q1 2027 Sales/Trading Call Transcript

TORONTO--(BUSINESS WIRE)--Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.35 U.S. per common share of the Company. The regular quarterly cash dividend will be paid on August 20, 2026 to shareholders of record at the close of business on August 6, 2026. The Board intends to review the quarterly dividend each October, with a long-term objective of increasing the amount o.

By PYMNTS  |  July 22, 2026

 | 

Apple reportedly wants to overhaul its Mac line as consumers seek artificial intelligence (AI)-powered computers.

The company plans to introduce new versions of every Mac product it sells, Bloomberg News reported Wednesday (July 22), citing unnamed sources with knowledge of the matter.

This will include long-awaited updates to the company’s desktops, several laptops and a revamped version of the MacBook Pro, all scheduled to roll out this fall and into 2027, the sources said.

The launches will begin with an updated low-end 14-inch MacBook Pro that will be among the first Macs to include a new M6 chip and the first new iMacs in two years, the sources added.

PYMNTS has contacted Apple for comment but has not yet received a reply.

Bloomberg noted that the Mac has seen a resurgence of late, with sales forecast to increase for the third straight year. These devices have become popular with people who run computing-intensive AI agents. At the same time, a dearth of memory chips strained manufacturing, causing Apple to increase prices, the report added.

Supply issues are such that new orders on some Mac mini and Mac Studio models won’t ship for at least three months, the report said, challenging Apple to introduce new models with its usual level of inventory, the report said.

Apple CEO Tim Cook had said in April that he thinks it could take “several months” for those machines to achieve supply demand balance, Bloomberg added. Apple raised prices on several products—though not its iPhone—in June.

A report earlier this month by Kiplinger said those price increases could lead to a years-long era of costlier electronics. Cook has blamed the price hikes on soaring memory chip costs, saying he’s never experienced anything like it in 40 years.

“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook told the Wall Street Journal last month.

Bloomberg had reported Tuesday (July 21) that the company was readying a leasing program known as Apple Upgrade. Set to launch next week, this service will reportedly support most iPhone, Mac, iPad and Apple Watch models and work like a subscription.

“Users can pay off devices early in their term, upgrade earlier to newer models, or keep the original device until the leasing period ends,” PYMNTS wrote in a report on the program. “As with a car lease, the device could be returned when the term is up.”

For all PYMNTS AI and digital transformation coverage, subscribe to the daily AI and Digital Transformation Newsletters.

Apple (AAPL -0.44%) stock has quietly been one of 2026's top-performing stocks. It's up around 20% so far this year, outperforming many other big tech peers. In fact, it isn't that far away from retaking the title of world's largest company from Nvidia (NVDA +2.39%). Currently, Nvidia is a $4.9 trillion company, while Apple sits at $4.8 trillion. However, there's a hidden risk with Apple's stock that nobody is talking about: valuation.

Most of Apple's share price growth in recent years has come from investors being willing to pay more for its sales and earnings, not from actual improvements in its business performance. This could be a major issue, because Apple may have some emerging problems on its hands.

Image source: The Motley Fool.

Apple's stock is expensive Apple has a track record of being one of the most consistently performing companies in the market, which should earn its shares a bit of a premium price tag. However, how much is too much? Apple shares trade for nearly 40 times trailing earnings, and 37 times forward earnings.

AAPL PE Ratio data by YCharts.

For comparison, the S&P 500 (^GSPC -0.14%) trades at 25.5 times trailing earnings and 21.5 times forward earnings. That means from a forward earnings standpoint, investors are paying nearly twice as much for Apple as they are for the average stock. Those are huge expectations to live up to, and there are reasons for investors to worry about whether it can.

Apple is about to face one of its biggest crises in recent memory: soaring commodity prices. The data center build-out has eaten up the production capacities of many of the companies that also make components for Apple's products. For example, there's now a shortage of memory chips, and their prices have soared dramatically as a result.

To compensate for its higher costs, Apple may have no choice but to start raising its iPhone prices, which may be poorly received among a consumer base that's already stretched financially thin. This could make maintaining margins difficult. Meanwhile, the company is also dealing with poor sales growth. The combination of all these factors may cause Apple's profits to fall, which would make Apple's already-pricey stock look even more expensive.

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I think this is a precarious setup for shareholders. Apple's stock is priced for perfection in a business where the environment is starting to worsen. There are many big tech stocks that are growing faster than Apple and trading at premiums far lower.

Take Nvidia, for example. The peak of the AI build-out still hasn't hit yet, and the chipmaker is still growing its revenue at an 85% year-over-year pace and trading at just 22.6 times forward earnings. Apple's stock has gotten far too expensive, and it's a risk that investors must know about, because they could get burned.

A Florida teen suing social-media platforms over claims their design led to mental health issues dropped his lawsuit against Meta Platforms ahead of a trial slated to begin next week in Los Angeles.

4:15pm: Earnings loom US stocks ended mostly lower on Wednesday as investors took a breather after two strong sessions, with rising oil prices and caution ahead of a wave of closely watched earnings keeping buying in check.

The Dow Jones finished little changed, slipping 6 points to 52,219. The S&P 500 fell 10 points, or 0.1%, to 7,499, while the Nasdaq underperformed, dropping 146 points, or 0.6%, to 25,691.

Trading was uneven throughout the session as investors stepped back from the artificial intelligence and semiconductor stocks that had powered the market's recent rebound. After two days of solid gains, traders appeared content to lock in profits while waiting for the next major catalyst.

Attention now shifts to a busy slate of earnings due after the closing bell, led by Tesla and Alphabet, whose results are expected to provide fresh insight into both AI spending and consumer demand. IBM, ServiceNow, Southwest Airlines and Wyndham Hotels & Resorts are also scheduled to report, adding to what is shaping up to be one of the busiest weeks of the earnings season.

Meanwhile, higher oil prices added another layer of caution to the market, raising concerns that persistent strength in energy could complicate the inflation outlook.

3:40pm: Proactive news headlines Custom Health Holdings Inc (TSX:CHLT) signed a binding letter of intent to acquire Evergreen Pharmacy in a US$3.5 million deal expected to add more than US$78 million in annual revenue. Varon Corp (OTCID:OZSC) announced that its Ballislife Drink joint venture signed a multi-year exclusive agreement to distribute Ballislife HYDRO Sports Drink across Canada, beginning with a C$100,000 purchase order. Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) has launched new drilling programs at its Berenguela project in Peru and its Challacollo project in Chile to expand copper, silver and gold mineralization. Snail Inc (NASDAQ:SNAL) said it will attend Gamescom 2026 in Germany, where it plans to showcase its growing game portfolio and unveil a previously undisclosed title. TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) announced that Altius Minerals increased its strategic stake in the company by purchasing an additional 7.435 million shares, bringing its total holdings to about 30.94 million shares. 2:30pm: Market movers Super Micro Computer Inc (NASDAQ:SMCI) shares surged about 20% after the AI server maker reported stronger-than-expected preliminary fourth-quarter gross margins and a record order backlog. AT&T Inc (NYSE:T, XETRA:SOBA) shares rose 4.3% after the telecom company reported second-quarter earnings that beat expectations, supported by strong postpaid phone and broadband subscriber growth. Oatly Group (NASDAQ:OTLY) shares jumped 29% after the oat drink maker reported stronger second-quarter revenue, improved margins, progress toward profitability and raised its full-year revenue outlook. Pegasystems shares fell about 15% after the enterprise software company reported second-quarter earnings and revenue that missed Wall Street expectations. GE Vernova shares declined about 6.4% after widening losses in its wind business overshadowed better-than-expected quarterly revenue and record order growth. Custom Health Holdings Inc (TSX:CHLT) signed a binding letter of intent to acquire Evergreen Pharmacy in a US$3.5 million deal expected to add more than US$78 million in annual revenue. Rocket Lab USA Inc (NASDAQ:RKLB) shares gained about 3% after the company secured a US$266 million contract from the US Air Force and US Space Force to provide suborbital launch services. Varon Corp (OTCID:OZSC) announced that its Ballislife Drink joint venture signed a multi-year exclusive agreement to distribute Ballislife HYDRO Sports Drink across Canada, beginning with a C$100,000 purchase order. Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) has launched new drilling programs at its Berenguela project in Peru and its Challacollo project in Chile to expand copper, silver and gold mineralization. 1:00pm: And then there's Alphabet Alphabet Inc (NASDAQ:GOOG) (Alphabet Inc (NASDAQ:GOOG)) reports second-quarter results after Wednesday's close, with Wall Street bracing for a print that could either validate the company's AI spending spree or intensify investor unease about it.

Bank of America is firmly in the bullish camp, reiterating its Buy rating and raising earnings estimates ahead of the print. The bank projects revenue of $102.1 billion and EPS of $8.38, both well above Street consensus of $101 billion and $2.90.

Much of that EPS gap traces to an estimated $80 billion boost to operating income from the revaluation of Alphabet's stake in Anthropic, whose valuation climbed from $380 billion in the first quarter to $965 billion in the second.

Capital spending remains the swing factor. Alphabet already guided full-year 2026 capex to $180 billion to $190 billion, and Bank of America thinks that range could climb another 5%, to $190 billion to $200 billion, given accelerating AI demand and rising memory costs.

12:05pm: Tesla's question mark Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) reports second-quarter results after the bell Wednesday, and the numbers investors already have in hand tell a split story: a blowout on deliveries, a question mark on spending.

The bigger debate on the call is likely to center on what Tesla is doing with its money, and its robots. The company set aside a $25 billion capital budget for 2026 to fund AI infrastructure and Optimus development, a spending pace analysts expect to push free cash flow to roughly negative $3.25 billion for the quarter.

Shares were flat Wednesday heading into the release.

11:00am: Supermicro surges Super Micro Computer Inc (NASDAQ:SMCI) (Super Micro Computer Inc (NASDAQ:SMCI)) shares opened about 20% higher on Tuesday after the company released preliminary fourth quarter fiscal 2026 results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance.

The AI server maker said revenue for the quarter ended June 30 is expected to be near the lower end of its previously issued guidance range of $11.0 billion to $12.5 billion. Wall Street analysts had been expecting revenue of about $11.73 billion.

The company also reported receiving more than $60 billion in new orders during the quarter, lifting its backlog to a record level at the end of fiscal 2026. Supermicro said the orders are expected to be delivered over future quarters.

10am: Dow opens higher, Nasdaq hit by semis selling There has been another uneven open on Wall Street, with investors selling out of technology stocks ahead of key earnings from Alphabet and Tesla after the close.

The Dow Jones has opened up 225 points, or 0.4%, while the Nasdaq fell 0.2%, with the S&P 500 oscillating around the flatline. 

Industrial and defensive names led the Dow gains, with Honeywell, Verizon, 3M and Chevron the top risers.

Meanwhile, the Nasdaq's fall resulted from declines in semiconductor and AI-linked stocks, with AppLovin, SanDisk, Workday, Palantir and Lam Research leading falls as investors take profits after the rally yesterday.

An exception is Super Micro Computer, which jumped over 20% after the company released preliminary results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance.

8.10am: Tech stocks to see Wall Street open lower  Wall Street stocks looked set for a weaker open on Wednesday as investors lock in profits in technology stocks ahead of crucial earnings from Google owner Alphabet and Tesla, while escalating tensions in the Middle East push oil prices to six-week highs.

Dow Jones futures were down 0.2%, while the S&P 500 was called 0.4% lower and the hardest hit is expected to be the Nasdaq, where futures have dropped 1%, with chipmakers leading the pre-market declines after a sharp rebound in the previous session.

The cautious mood follows a strong rally the day before, when the Dow Jones rose 380 points, or 0.7%, to 52,443, the S&P 500 gained 0.9% to 7,546, and the Nasdaq climbed 1.3% to 29,316, helped by a powerful recovery in semiconductor stocks after weeks of heavy selling.

Earnings from Alphabet and Tesla are due after the bell, with analysts seeing these as key tests for the artificial intelligence trade.

Markets will be watching Alphabet for updates on AI-related capital spending and monetisation, while Tesla's results are expected to provide fresh detail on autonomous driving, robotics and vehicle demand.

Results from Texas Instruments, IBM and ServiceNow will also be closely watched in the evening, while Philip Morris, GE Vernova and AT&T report before the opening bell.

Chip stocks were under pressure in pre-market trading as investors took profits following a 5.5% jump in the sector the previous session.

Semiconductor stocks have been under heavy pressure in recent weeks as hedge funds aggressively unwound crowded AI trades, driving the sector around 25% below its early June peak.

Tuesday's rebound came as "the Momo guys [momentum traders] ran out of stock to sell, so the pressure was off," said market strategist Kenny Polcari at Slatestone Wealth, suggesting the wave of forced selling may have largely run its course.

Meanwhile, Brent crude traded above $94 a barrel after another night of US strikes on Iranian targets and renewed threats to shipping routes in the Middle East from Yemen. 

The stronger oil price has revived concerns that inflation could prove more persistent, complicating the Federal Reserve's policy outlook just as investors had begun to scale back expectations of further interest-rate increases.

"10 straight days of US strikes and continued attacks on military targets have kept a geopolitical premium firmly embedded in oil prices and that will become more of an issue next month and the months after," said Polcari. 

There is little in the way of economic data due on Wednesday, putting more of the onus on corporate earnings and developments in the Middle East.

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Last updated 24 mins ago

Tesla Q2 results live: Investors look to Elon Musk's earnings call after automaker posts cash burnOur Standards: The Thomson Reuters Trust Principles., opens new tab

Vanessa Balintec is a Live Page Journalist based in Toronto, Ontario. She helps create and curate multimedia posts for Reuters’ Live Pages — a scrolling feed of multimedia posts for some of the biggest stories of the day. She previously worked at various bureaus for CBC News. Contact: [email protected]

Had you purchased Tesla (TSLA -1.29%) 10 years ago and held one, you'd have reaped a monster 2,380% return (as of July 21). That's a nearly 25-fold gain, something any investor would be ecstatic about.

It now has a market cap of $1.4 trillion, so there is certainly not as much upside potential in its future as there was in its past. But could buying this "Magnificent Seven" stock today eventually give you a 10x return?

Image source: The Motley Fool.

The potential of Robotaxi and Optimus Tesla is still primarily an electric vehicle company, but its bull case rests more on its ability to bring artificial intelligence capabilities to the physical world at scale.

One area this will show up is autonomous driving technology. Tesla is currently operating its self-driving Robotaxis service with unsupervised rides in four U.S. cities. Clearly, it will have a lot of work to do to get it up and running at scale in markets around the world. But if it can compete successfully against the other players in the self-driving and ride-share spaces, there's a chance it could result in a sizable high-margin revenue stream.

Its Optimus humanoid robot is another initiative that provides the business with optionality. Tesla began preparations for its first large-scale Optimus factory in Q2. The ultimate goal is to sell these machines both to enterprise clients and consumers. 

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Expectations are sky-high Tesla is working on ambitious projects. Yet even if it finds success with Robotaxi and Optimus, it's hard to know if shareholders will be happy.

That's because the company's sky-high valuation introduces a notable headwind to further share price appreciation. The stock trades today at a price-to-earnings ratio of 353. Even with flawless execution on Tesla's part, the optimism already baked into the stock might leave it with little to gain from rising earnings and revenues. With that in mind, investors should not expect another 10x gain from the stock. It's also worth repeating that retail investors should not put all of their eggs in one basket, nor all of their portfolio in one stock. So if you buy Tesla shares today, even in the unlikely event that the company does increase in value tenfold from here, that would not 10x your net worth. 

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Tesla reported negative free cash flow in the second quarter for the first time in more than two years as the Elon Musk-led EV maker accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing.

The company is selling more cars, but the company's profit was down because of price cuts and higher expenses.

Tesla Inc (NASDAQ:TSLA) reported second-quarter financial results after market close Wednesday.

Here are the highlights.

Tesla Q2 EarningsTesla reported second-quarter revenue of $28.24 billion. The total beat a Street consensus estimate of $25.71 billion, according to data from Benzinga Pro.

Second-quarter earnings of 33 cents per share missed a Street consensus estimate of 50 cents per share.

Tesla previously reported second-quarter deliveries of 480,126 vehicles, up 25% year-over-year. The total beat a Street estimate of 406,000.

The company said it hit $100 billion in trailing twelve-month revenue for the first time in history in the second quarter.

Active FSD subscriptions hit 1.48 million in the second quarter, up 56% year-over-year and up from the 1.28 million reported in the first quarter.

Tesla ended the quarter with digital assets worth $674 million, made up primarily of Bitcoin (CRYPTO:BTC) holdings. This marks a significantly lower figure than the $786 million in the first quarter, with the leading cryptocurrency trading lower this year.

What’s Next for TeslaThe company said its first-generation production lines for Optimus Bot are being installed in anticipation of production in 2026, with the company saying production will happen "soon."

The Cybercab is listed as in production, an improvement from the company saying it expected volume production "this year" last quarter. Tesla said the vehicle began production in the quarter.

The Tesla Semi is listed as "commissioning" and the company said it remains on track for volume production this year.

"We are focused on maximum capacity utilization at our factories," the company said.

Tesla said deliveries and deployments will depend on demand.

"Tesla is in its largest and most exciting period of investment."

The company said it has "never been more optimistic about the future."

Tesla Stock Price ActionTesla stock is down 2.8% to $363.42 in after-hours trading Wednesday versus a 52-week trading range of $297.82 to $498.83.

Image via Shutterstock

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Tesla is no longer planning to reach “volume production” of three of its newest products – the Cybercab, the Tesla Semi, and its Megapack 3 commercial energy storage solution – in 2026, according to a second-quarter shareholder letter published Wednesday. The company also removed language from its first-quarter letter about its Optimus robot reaching “volume production.”

The company said Wednesday that it’s trying to increase battery production, specifically around the company’s 4680 cell, in order to start building the Cybercab and Tesla Semi at scale. It did not offer a reason for pushing back volume production of the new Megapack, or say whether there are any holdups around Optimus.

Tesla started making the first production Cybercabs at its factory in Austin, Texas earlier this year, but said in the letter that it’s still building out the manufacturing lines for the Semi and Optimus. The company had said as recently as January that the Cybercab, Semi, and Megapack 3 would reach “volume production” this year.

The pullback comes as the company plows money into its next generation of products while attempting to shift from an EV maker to an AI and robotics company. Tesla’s results, which showed net income falling 5% year-over-year to $1.1 billion, capital expenditures more than doubling, and negative free cash flow, were slightly buoyed by an uptick in revenue. 

Still that revenue boost wasn’t enough to offset the cost of business and Tesla’s push to develop and launch new products, which Tesla CFO Vaibhav Taneja previously said would lead to negative cash flow for the remainder of the year.

The company reported revenue of $28.2 billion, a 26% increase from the $22.5 billion it generated in the second quarter of 2025. Tesla’s second-quarter revenue also grew from the previous quarter’s haul of $22.38 billion.

The bulk of its revenue came from selling and leasing its EVs — and those results improved significantly this quarter.

The company reported automotive revenue of $20.5 billion in the second quarter, compared to $16.6 billion in the same-year ago period. Tesla delivered more than 480,000 vehicles in the second quarter, an increase of more than 120,000 from the first quarter.

It was Tesla’s best result for overall sales since the third quarter of last year, when it delivered nearly 500,000 vehicles. The increase was driven by record sales in several markets outside of the U.S., including South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Slovenia and Lithuania, the company said in its shareholder letter.

Tesla’s second-quarter revenue results improved from a year ago when the company suffered from a combination of falling EV sales, lower average selling prices, less cash from regulatory credits, and a drop in solar and energy revenue. 

Sales of energy storage and solar also proved to be a standout, improving 13% to $3.1 billion. And subscriptions to Tesla’s advanced driver assistance system, known as Full Self-Driving (Supervised) continue to rise. The company reported 1.48 million subscriptions, a 56% increase from the same period last year.

Tesla’s bottom line, however, slipped as it poured money into new products and saw its gross margins squeezed.

Tesla reported net income of $1.1 billion, a 5% decrease from the same period a year ago. At the same time, its operating expenses ballooned by 47% to $4.3 billion. Meanwhile, Tesla had negative free cash flow of $1 billion in the second quarter, a stark change from the $1.44 billion in positive free cash flow it reported last quarter and the $146 million it had in the same period last year. 

The company’s operating income was $398 million, a 57% drop from the $932 million it reported in the same period last year. 

A year ago, Tesla called the second quarter of 2025 a “seminal point” in the company’s history and the beginning of its transition from a company that sells electric vehicles, solar, and energy storage to one that leads in “AI, robotics and related services.”

That transition is still underway and Tesla CEO Elon Musk has said the company would boost spending to achieve its goal. Tesla said its capital expenditure will be $25 billion in 2026, about three times more than it historically has spent.

This spring, the company ended production of its flagship Model S sedan and Model X SUV vehicles at its Fremont, California factory to make way for its Optimus humanoid robot. It is also bringing its Tesla Robotaxi service to new cities, albeit with a limited number of vehicles. And it’s still pushing to sell owners on Full Self-Driving (Supervised), and eventually make that product capable enough to handle all driving without the need of a human. 

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.

You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.

Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.

You can contact or verify outreach from Sean by emailing [email protected] or via encrypted message at okane.01 on Signal.

"All eyes are clearly going to be on cloud revenue as well as CapEx numbers," says Angelo Zino as he discusses expectations for Alphabet (GOOGL) earnings. He notes a very high bar for the stock with Wall Street eyeing 20% growth.

YouTube ad revenue increased 13% in the second quarter compared with the same period a year ago, helping to pace parent Alphabet‘s financial performance.

Total revenue rose 24% in the quarter to hit $119.8 billion, while earnings per share nearly quadrupled to $9.11. Both metrics were ahead of Wall Street expectations.

YouTube pulled in $11.06 billion in ad revenue, showing double-digit growth that has eluded its traditional media rivals in recent years. Along with its deep well of creator content, YouTube is increasingly looking to cross over into traditional entertainment, landing rights to the Academy Awards and NFL football games.

RELATED: The NFL Wants To Attract Younger Fans; YouTube Blitzed Super Bowl LX To Try To Make That Happen

In the company’s earnings release, Google and Alphabet CEO Sundar Pichai flagged YouTube’s popularity as a way for people to keep current. “Month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup,” he wrote.

Debate about the stocks of Alphabet and the other “magnificent seven” tech giants (Nvidia, Apple, Amazon, Meta, Tesla and Microsoft) preceded the earnings release. Some Wall Streeters fret about a recent divergence between the “mag seven” and semiconductor shares, given that chipmakers have slumped recently despite their key role in the AI boom.

RELATED: UK Government Unveils Plan For Midnight Social Media Curfew For Older Teens

Google, initially a laggard in AI, has moved the head of the sector during the past few quarters, though it also faces questions about strategic plans for Gemini and other tools.

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Stock Market Rally Defies Rising Oil, Bond Yields; Chips Lead As Seagate, Micron Make Bullish Moves Google stock fell late Wednesday despite parent Alphabet (GOOGL) posting second-quarter earnings and revenue that topped Wall Street's targets thanks to better-than-expected growth in cloud computing. Meanwhile, Google's internet search ad revenue only met expectations. The internet giant reported Q2 results after the market close on Wednesday. Google earnings popped to $9.11 per share for the quarter ended June 30,…

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Alphabet stock is trending. Where are GOOG shares going? Alphabet Q2 Earnings HighlightsAlphabet posted second-quarter revenue of approximately $119.80 billion, beating analyst estimates of $116.82 billion, according to Benzinga Pro.

The Google parent company reported second-quarter earnings of $9.11 per share, which may not compare to estimates. Alphabet said earnings were up 294% year-over-year.

Total revenue was up 24% on a year-over-year basis, driven by strong performance across the business. Here’s a breakdown of revenue by category.

Google Search: $63.27 billion, up from $54.19 billion year-over-year YouTube Advertising: $11.06 billion, up from $9.80 billion year-over-year Google Cloud: $24.77 billion, up from $13.62 billion year-over-year Google Advertising: $81.63 billion, up from $71.34 billion year-over-year “Our AI investments are redefining what’s possible across every part of our business,” said Sundar Pichai, CEO of Alphabet.

“Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it.”

Alphabet noted Gemini models now process 22 billion API tokens per minute and the Gemini app now has 950 million monthly active users.

Alphabet ended the quarter with approximately $242.47 billion in cash, cash equivalents and marketable securities.

Alphabet executives will further discuss the company’s quarterly results on an earnings call at 4:30 p.m. ET.

GOOG Shares Move Higher After the BellGOOG Price Action: Alphabet shares were up 1.39% in after-hours on Wednesday, trading at $346.67 at the time of publication, according to Benzinga Pro.

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Alphabet Inc (NASDAQ:GOOG) reported second quarter results that exceeded Wall Street expectations, driven by accelerating growth in Google Cloud and continued strength across its search and advertising businesses.

The company reported revenue of $119.8 billion for the quarter ended June 30, up 24% from a year earlier and ahead of analysts' consensus estimate of approximately $116.8 billion.

Earnings per share came in at $9.11, well above the roughly $2.87 analysts had expected. The result was boosted by a significant unrealized gain on the company's equity investments, with other income totaling $98 billion during the quarter.

Google Cloud was a key driver of the outperformance, with revenue rising 82% year over year to $24.8 billion, surpassing the Street estimate of $22.3 billion. The company attributed the growth to demand for Google Cloud Platform across enterprise AI solutions, enterprise AI infrastructure, and its core cloud services.

Google Services revenue increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% growth in subscriptions, platforms and devices, and 13% growth in YouTube advertising. YouTube advertising revenue totaled $11.06 billion, ahead of the $10.8 billion analysts had forecast.

Alphabet's operating income rose 30% from a year earlier, while operating margin expanded by two percentage points to 34%.

The company said the quarter marked its 12th consecutive period of double-digit revenue growth.

"Our AI investments are redefining what's possible across every part of our business," Alphabet CEO Sundar Pichai said in the earnings release.

"Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It's great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it."

Pichai added that the company's AI initiatives continued to gain traction across its businesses.

"We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost-efficient performance at the frontier. And month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026,” Pichai said.

"These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers, and our partners globally."

Shares of Alphabet traded down about 1% post-earnings. 

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Google CEO Sundar Pichai. Bloomberg/Getty Images Google's Gemini is nearing the big One Billion.

The company said on Wednesday that the Gemini AI app now has 950 million monthly active users. On the earnings call, CEO Sundar Pichai also said that daily active users have tripled in the past year.

That puts it close behind OpenAI's ChatGPT, which has around 1 billion monthly users per recent data from Sensor Tower.

To track Google's trajectory here, it said in October that the Gemini app was seeing around 650 million monthly active users. In February, reporting its Q4 2025 earnings, Google said that figure had risen to over 750 million.

Google has been rolling out more cost-friendly and faster models. This week, it rolled out three models, including its Gemini 3.6 Flash model, which the company said is better at tasks such as coding than its predecessor while using fewer tokens, making it more cost-effective.

Google's new frontier 3.5 Pro model is still delayed, even as Google this week teased that early work on Gemini 4 had started. These latest user numbers on Gemini suggest that it's still scooping up users quite nicely.

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