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Stock to Watch: Henry Schein (HSIC - Free Report) Melville, NY-headquartered Henry Schein Inc. is a solutions company for health care professionals that combines distribution, technology, and value-added services. The company serves office-based dental, medical and animal health practitioners, dental laboratories, government as well as institutional health care clinics and other alternate-care sites. Presently, Henry Schein operates in 34 countries and offers a comprehensive selection of more than 300,000 branded products.
HSIC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. HSIC has a Momentum Style Score of B, and shares are up 2.5% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $5.32 per share. HSIC also boasts an average earnings surprise of +3.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HSIC should be on investors' short list.
Henry Schein NASDAQ: HSIC executives said the company is on track with its 2026 commitments and value-creation plan, while pointing to continued momentum in the U.S. dental market despite broader concerns about consumer confidence.
Speaking at a Stifel dental track event moderated by Stifel Managing Director Jon Block, Fred Lowery, who became Henry Schein’s chief executive officer in March, said his first roughly 100 days have been focused on “listening and learning” and organizing priorities into three areas: delivering on commitments, simplifying the business and scaling for growth.
Lowery said Henry Schein remains on track to deliver on its 2026 guidance and previously outlined value-creation initiatives. He also said the company has opportunities to simplify a decentralized business structure, including joint ventures and aspects of its commercial approach, while building on its technology, own-brand and distribution capabilities.
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Dental Demand Remains Steady Lowery said the dental market has remained relatively steady because a large portion of dental demand is tied less to consumer sentiment and more to employment and insurance coverage.
He described two major groups of patients: those who visit the dentist every six months, often with employer-provided insurance, and those who delay treatment until pain, discomfort or visible issues require care. Lowery said a smaller portion of the market is more discretionary, including cosmetic procedures.
“As long as people are working at a reasonable rate, and unemployment rates have been pretty steady, I think that bodes well for the market overall,” Lowery said.
Ron South, Henry Schein’s senior vice president and chief financial officer, said the company saw dental momentum improve through the first quarter, with February better than January and March better than February. He said that momentum continued into April and through the first part of May.
South said Henry Schein has not yet seen a direct correlation between recent weaker consumer confidence measures and its dental business. He attributed the company’s improvement in dental to momentum that began in the third quarter of last year, including promotional activity in mid-2025 that helped the company gain market share in the second half of that year.
South said Henry Schein has moved “a little more on offense” and is seeing benefits from hiring experienced sales representatives and emphasizing its role as a solutions provider rather than only a product provider.
Medical and International Trends Lowery said Henry Schein’s medical business faced pressure in the first quarter from diagnostic test kits tied to respiratory illness, primarily flu. Excluding that headwind, he said the underlying medical business grew at a mid-single-digit rate, and that trend has continued into the second quarter.
Lowery also highlighted strong growth in the company’s home solutions business.
On international markets, South said Germany has remained a steady market for Henry Schein in core dental and specialty. He also cited Canada as a strong business that has managed competitive challenges well.
Revenue Growth and New Products South said first-quarter overall revenue growth benefited by about three points from foreign exchange, a benefit he expects to diminish as the year progresses. He said the company expects to improve its internal growth rate after first-quarter headwinds from point-of-care diagnostic kits in medical and timing in the specialty business.
Lowery said Henry Schein continues to expect suppliers to invest in new products and views its distribution network as an attractive launch platform. He pointed to Curodont, which he said is being launched exclusively through Henry Schein’s distribution network, as an important product in the company’s portfolio.
Lowery also said Henry Schein is accelerating new capabilities in its technology business, including through internal artificial intelligence development and partnerships that can plug into its clinical workflow and practice management systems. He said investors should expect a “steady drumbeat” of new products and capabilities in technology, along with continued product launches in specialty products.
In implants, Lowery said Henry Schein became the majority owner of the S.I.N. U.S. distribution business in the first quarter. He described S.I.N. as a value implant business operating in a part of the U.S. market where growth is strong.
Value-Creation Plan Lowery said Henry Schein’s value-creation plan is broader than cost reduction and includes gross profit improvement and operating efficiency. He said the company is investing in analytics, tools and personnel to improve pricing visibility and make more targeted decisions on where to raise or lower prices.
He said Henry Schein is also focused on expanding its own brands and building shared-service capabilities for back-office functions with an outsourced partner. Lowery added that the company is developing systems, processes and personnel to better leverage its scale in indirect sourcing.
Lowery said the company has line of sight to a $125 million net run-rate operating income improvement by the end of 2026 and expects to deliver up to $200 million over the next few years.
South said the $125 million run-rate target supports the possibility of double-digit earnings growth in 2027, though he said it is too early to provide 2027 guidance.
Portfolio, Equipment and Capital Allocation Lowery said Henry Schein is comfortable with the current perimeter of its business, including the medical segment. He said the medical and dental businesses are integrated from a supply chain standpoint, with about 30% of SKUs overlapping between the two.
On dental equipment, South said Henry Schein’s U.S. equipment mix remains roughly two-thirds traditional equipment and one-third digital equipment. He said lower average selling prices for intraoral scanners may encourage more dental practices to adopt digital technology, potentially creating future opportunities for additional digital equipment sales.
Lowery said Henry Schein remains committed to a balanced and disciplined capital allocation strategy. He said share repurchases have been prioritized recently and are likely to remain a priority in the near term because he believes the stock is undervalued.
Lowery said the company also wants to maintain flexibility for strategic investments and would approach mergers and acquisitions in a disciplined way, focusing on assets that support customers, drive future organic growth, expand margins and generate appropriate shareholder returns.
About Henry Schein NASDAQ: HSICHenry Schein, Inc is a leading global distributor of healthcare products and services, primarily serving office-based dental, medical and animal health practitioners. The company operates through three principal segments—Schein Dental, Schein Medical and Animal Health—each offering a comprehensive portfolio of consumable products, equipment, instruments and related value-added services. With a focus on improving practice efficiency and patient care, Henry Schein provides everything from dental restorative materials and orthodontic appliances to vaccines, pharmaceuticals and diagnostic devices for physicians, as well as pet health products and veterinary equipment for animal health professionals.
In addition to its broad product offering, Henry Schein delivers a suite of technology and service solutions aimed at streamlining workflows and enhancing clinical outcomes.
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It has been about a month since the last earnings report for Henry Schein (HSIC - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Henry Schein due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Henry Schein Tops on Q1 Earnings and RevenuesHenry Schein, Inc. registered first-quarter 2026 adjusted earnings per share of $1.32, up 14.8% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 10.3%.
Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP earnings per share of 92 cents compared with the year-ago quarter’s 88 cents.
HSIC’s Revenues in Detail
Henry Schein reported first-quarter net sales of $3.37 billion, up 6.3% year over year. The metric also beat the Zacks Consensus Estimate by 1.15%.
Excluding 0.7% sales growth from acquisitions and a 3.1% increase from foreign currency exchange, internal sales growth was 2.5%.
HSIC’s Q1 Segmental Analysis
Sales in the Global Distribution and Value-Added Services segment was $2.84 billion, up 6.1% year over year on a reported basis and reflects 2.5% internal sales growth.Our model forecast was $2.77 billion.
Within this, Global Dental Distribution merchandise sales reflected 3% internal sales growth year over year, with continuing strong momentum in the United States.
Global Dental Distribution equipment sales witnessed 3.5% internal sales growth. Global Medical Distribution sales for the quarter saw 1.3% internal sales growth. Global Value-added Services sales highlighted 7.8% internal sales growth in the quarter.
The Global Specialty Products segment reported $397 million in sales, up 8.1% on a reported basis (1.7% internal sales growth). Our model forecast was $405.9 million.
Lastly, sales in Global Technology totaled $173 million, up 7% on a reported basis and reflected 6.9% internal sales growth. Our model projected $175.6 million for this segment.
HSIC’s Margin Performance
In the reported quarter, the gross profit totaled $1.07 billion, representing a 7% increase year over year. The gross margin expanded 20 basis points (bps) to 31.8% despite a 6% rise in the cost of sales.
SG&A expenses increased 9.6% to $809 million in the quarter under review. The adjusted operating profit was $261 million, down 0.4% year over year. The adjusted operating margin contracted 52 bps year over year to 7.7%.
Liquidity Position of HSIC
Henry Schein exited the first quarter of 2026 with cash and cash equivalents of $128 million compared with $156 million at the end of 2025.
Cumulative net cash used in operating activities at the end of the reported quarter was $97 million compared with cash inflow of $37 million a year ago.
During the reported quarter, HSIC repurchased nearly 1.6 million shares of its common stock at an average price of $77.64 per share for a total of approximately $125 million. At the end of the reported quarter, Henry Schein had $655 million authorized and available for future stock repurchases.
HSIC’s 2026 Guidance
The company continues to expect 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.69 billion, indicating 3.9% year-over-year growth.
Non-GAAP diluted earnings per share for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.30.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.
VGM ScoresAt this time, Henry Schein has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Henry Schein has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerHenry Schein is part of the Zacks Medical - Dental Supplies industry. Over the past month, West Pharmaceutical Services (WST - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
West Pharmaceutical reported revenues of $844.9 million in the last reported quarter, representing a year-over-year change of +21%. EPS of $2.13 for the same period compares with $1.45 a year ago.
For the current quarter, West Pharmaceutical is expected to post earnings of $2.08 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
West Pharmaceutical has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
Pre-Market Stock Futures: Futures are trading higher after a dreadful day on Wall Street, when all the major indices traded lower, and we saw the same pattern that has developed over the last week. The “Buy the Dip” traders come in, briefly get an uptick, and a move higher, and the sellers swarm in to hit bids that have moved higher. The song remains the same: the war with Iran, inflation (which saw the Consumer Price Index jump to 4.2%), yields moving higher, and rotation out of the AI/Datacenter trade continue to keep the sellers coming back for more. With the gigantic SpaceX IPO set to trade on Friday, some of the selling could be to raise cash to pay for allocations, which should be big for institutions, but the reality is we could be on the edge of a much bigger sell-off. The Nasdaq was the biggest loser on the day, falling 1.98% to close at 25,169, while the Dow Jones Industrial Average was not far behind, ending the session at 49,918, down 1.87%. The S&P 500 closed at 7,266, down 1.62%, and the Russell 2000 was last seen at 2,835, down 1.10%.
Treasury Bonds: Yields were higher across the Treasury curve, but the selling pressure wasn’t as severe as in equity markets. The huge CPI print, while the highest in 3 years, was expected, as that is where estimates were. Had the estimate been dramatically lower, we would have likely seen much more selling pressure. The 30-year-long bond closed the day at 5.03%, while the benchmark 10-year note finished the day at 4.55%.
Oil and Gas: Needless to say, with the possibility of the war with Iran ratcheting up, energy prices across the board moved higher on Wednesday. When the closing bell rang, Brent Crude’s final print was recorded at $94.60, up 3.44%, while West Texas Intermediate closed the session at $90.03, up 2.07%. Natural gas tagged along for the energy ride, finishing the day at $3.19, up 1.43%.
Gold: Gold had another tough day, and the trend for the precious metal is starting to look bad, as it hit its lowest level since last November. This selling trend follows reports that China bought +10 tonnes (a tonne is a metric reference, which is higher than the US ton) of gold in May, the largest monthly addition since January 2025. This follows +8 tonnes acquired in April, marking their 3rd consecutive monthly net purchase. China has now bought gold for 19 consecutive months, the longest streak since at least 2015, when its central bank began publishing more regular data on its gold reserves. The final trade for the precious metal on Wednesday came in at $4070.30, down 4.42%, while Silver was last seen at $62.25, down 2.95%.
Crypto: Cryptocurrencies endured a volatile Wednesday, with Bitcoin sliding to around $61,000 as the broader market grappled with a cooling AI sector and persistent institutional outflows. Although prices received an early lift from softer-than-expected U.S. inflation data, overall sentiment stayed firmly under pressure. At 8 AM EDT, Bitcoin was trading at $63,050, while Ethereum was trading at $1,665.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the Best Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, June 11, 2026.
Upgrades: Black Hills (NYSE: BKH | BKH Price Prediction) was upgraded to Buy from Neutral at Bank of America, which nudged their target price to $78 from $76. The company is merging with Northwestern Energy in an all-stock deal. CME Group (NYSE: CME) was raised to Buy from Neutral by Rothschild & Co Redburn, which bumped the target price for the shares to $323 from $316. General Dynamics (NYSE: GD) was upgraded to Buy from Hold at Jefferies, which raised the price target for the Defense giant to $400 from $380. Henry Schein (NASDAQ: HSIC) was upgraded to Buy from Neutral at BTIG, with a $100 target price. Intel (NASDAQ: INTC) was double upgraded to Buy from Underperform at Bank of America, which raised the target price for the legacy chip giant to $135 from $96. Downgrades: Chewy (NYSE: CHWY) was downgraded to Neutral from Buy at MoffettNathanson, without a price target. J.Jill (NYSE: JILL) was cut to Market Perform from Outperform at William Blair, without a price target. MarketAxess Holdings (NASDAQ: MKTX) was cut to Neutral from Buy at Rothschild & Co Redburn, which slashed the price target for the shares to $134 from $189. Procept Biorobotics (NASDAQ: PRCT) was downgraded to Market Perform from Outperform at Leerink, which cut the target price for the stock to $29 from $31. Initiations: Callaway Golf (NYSE: CALY) was assumed in coverage with a Neutral rating at Goldman Sachs, which has set a $17 target price. Danaher (NYSE: DHR) was initiated with a Neutral rating at Piper Sandler, with a $200 target price objective. SpaceX (NASDAQ: SPCX) was started with no rating, but a $165 target price at New Street. Oppenheimer initiated coverage of the shares with an Outperform rating and a $190 target price. The massive IPO will start trading on Friday at $135. Rocket Lab USA (NASDAQ: RKLB) was started with a Neutral rating at KGI Securities, with a $105 target price. Toast (NYSE: TOST) was assumed with an Overweight rating at Piper Sandler, with a $32 target price.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying HSIC stock? Here’s what analysts think:
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Healthcare AI stocks have been hammered in 2026, with several names down 30% to 65% year to date even as their underlying platforms keep maturing. That dislocation between share price and product progress is exactly the kind of setup retail investors should scan for: real revenue, real partnerships, and prices low enough that a successful multi-year execution path can plausibly deliver triple-digit returns. The $50 ceiling is the filter; the AI flywheel is the thesis.
With that in mind, here are seven healthcare AI stocks trading under $50 where the bull case is grounded in product, partnership, or platform data, not hype.
Tempus AI Tempus AI (NASDAQ: TEM | TEM Price Prediction) pairs genomic diagnostics with a massive healthcare data library that pharma partners license for AI-driven drug discovery. At around $43.93, shares are down 25.6% year to date and are well below the $67.20 analyst target price, with 10 Buy or Strong Buy ratings against one Sell.
Q4 2025 revenue grew 83% year over year to $367.21 million, adjusted EBITDA flipped positive at $12.89 million, and 2026 guidance calls for $1.59 billion in revenue and roughly $65 million in adjusted EBITDA. CEO Eric Lefkofsky said “network effects from our investments in AI continue to compound,” backed by deepening partnerships with Gilead, Merck, and Daiichi Sankyo. The risk is that an accumulated deficit of $2.4 billion, heavy stock-based comp, and the $460 million in convertible notes priced in May 2026 add dilution and execution risk. Still, the data flywheel keeps spinning.
Hims & Hers Health Hims & Hers Health (NYSE: HIMS) runs a direct-to-consumer telehealth platform that uses AI to personalize care across weight loss, dermatology, mental health, and sexual wellness. At about $25.05 a share, the stock is down 57.2% over one year, with a forward P/E near 48x.
FY2026 guidance was raised to $2.80 billion to $3.00 billion in revenue and $275 million to $350 million in adjusted EBITDA, and management is targeting $6.5 billion in revenue and $1.3 billion adjusted EBITDA by 2030. International revenue surged 969% to $78.19 million, and a $250 million buyback was authorized. CEO Andrew Dudum called 2026 “a defining year.” The bull case is based on subscriber growth, the Novo Nordisk branded GLP-1 partnership, and international scaling. Notably, Q1 2026 EPS missed consensus estimates by 396.74%, U.S. revenue declined, and ongoing FDA and securities lawsuits around compounded GLP-1s remain unresolved.
Doximity Doximity (NYSE: DOCS) operates the dominant professional network for U.S. physicians, now layered with Doximity GPT and clinical AI workflow tools. Trading at around $18.97, the stock is down 57.2% year to date, with a PEG ratio of 0.715 and a forward P/E near 16x.
The platform now reaches 800,000+ active prescribers, with nearly half using clinical AI and prompts per user nearly doubling between January and April 2026. FY2026 generated $644.86 million in revenue, $196.05 million in net income, and $317.50 million in free cash flow, and the company repurchased $431.7 million of stock. The triple-digit upside thesis depends on AI engagement converting into pharma ad pricing power. The risk here is that FY2027 revenue guidance of $664 million to $676 million implies meaningful growth deceleration, and stock-based comp doubled. The cash generation cushions the multi-year story.
Nurix Therapeutics Nurix Therapeutics (NASDAQ: NRIX) applies an AI and computational platform to targeted protein degradation, a next-generation drug modality. At about $15.86, shares are well below the $30.18 analyst target, with 17 Buy or Strong Buy ratings and zero Holds or Sells.
Lead asset bexobrutideg, a BTK degrader, is enrolling the Phase 2 DAYBreak CLL-201 study, with Phase 3 DAYBreak CLL-306 set to start mid-2026 and an IND submission planned in autoimmune indications. CEO Arthur Sands has positioned bex as a “potential best-in-class” CLL therapy. Active collaborations with Gilead, Sanofi, and Pfizer carry 50/50 U.S. profit-share opt-ins, and $540.73 million in cash may fund the runway through 2027 readouts. However, Q1 revenue collapsed 66.1% year over year as the Sanofi initial research term expired, and clinical trials can fail at any stage.
Schrödinger Schrodinger (NASDAQ: SDGR) combines physics-based simulation with AI in a drug discovery platform used by most major biopharma R&D groups. At around $11.95, the stock is down 33.2% year to date, with analysts targeting $20.88.
FY2026 guidance calls for ACV of $218 million to $228 million and drug discovery revenue of $55 million to $65 million, with the Bunsen agentic AI co-scientist launching in summer 2026. Lilly’s pending acquisition of co-founded Ajax Therapeutics for up to $2.3 billion validates the ecosystem; Schrodinger holds a 5.8% stake. CEO Ramy Farid said, “the biopharmaceutical funding environment is improving,” which matters since software revenue is mid-transition. Yet operating cash flow swung to negative $14.83 million from positive $144 million year over year, and cash burn is meaningful. If Bunsen lands, the multi-year setup is compelling.
Phreesia Phreesia (NYSE: PHR) sells AI-enabled patient intake and provider workflow software to thousands of healthcare practices. At about $8.77, the stock is down 65.9% over one year, with an analyst target of $15.39 and a forward P/E near 18x.
FY2026 delivered Phreesia’s first-ever positive GAAP net income year, with adjusted EBITDA above $100 million and free cash flow over $50 million. Q4 free cash flow set a record at $28.5 million, up 210%. CEO Chaim Indig said the “underlying platform is stronger than it has ever been.” The bull case is based on AI-driven margin expansion plus a depressed share price. Risk: FY2027 revenue guidance was cut to $510 million to $520 million on pharma manufacturer pullback in vaccines and GLP-1 categories, sending shares down roughly 25%. Profitability is durable; growth visibility is not.
AbCellera Biologics AbCellera Biologics (NASDAQ: ABCL) runs an AI and machine-learning antibody discovery platform, now also advancing its own internal pipeline. At around $4.09, the stock is up 102.5% over one year but well below the $10.14 analyst target, implying meaningful upside.
Q1 revenue grew 96.3% year over year to $8.31 million and EPS beat by 29%. Lead asset ABCL635, a non-hormonal antibody for vasomotor symptoms, posted positive Phase 1 interim data with about a 24-day half-life supporting monthly dosing; the addressable market is over $6 billion, with 12 million U.S. women suffering moderate-to-severe VMS. CEO Carl Hansen described the upcoming Q3 2026 Phase 2 readout as “highly de-risking,” followed by an ABCL575 Phase 1 readout in Q4 2026. With around $655 million in available liquidity, the balance sheet is strong. The risks are pre-revenue burn and binary trial outcomes.
The Takeaway A low share price by itself is never a reason to buy or avoid a stock. Each of these names carries real volatility, ongoing losses or dilution exposure, and execution risk that could materially change the thesis. Treat this list as a research starting point, dig into the latest filings, and size positions accordingly before acting.
Hims & Hers (NYSE:HIMS) is dominating headlines this week because the GLP-1 darling just delivered one of the ugliest quarters in the telehealth sector’s short history, and bargain hunters are circling the wreckage. But here’s what you should actually be watching.
The Q1 2026 release on May 11, 2026 was a fracture. EPS came in at -$0.40 against a $0.03 consensus, a 1,266% miss, with a net loss of $92.11 million versus net income of $49.48 million a year earlier. GAAP gross margin compressed to 65% from 73%, and adjusted EBITDA collapsed to a 7% margin. The U.S. business, the actual core, shrank 8% year over year. Shares fell 14.1% on the day to $25.03, capping a 54.66% one-year decline.
The valuation remains stretched even after the drop. Even after the fall, Hims trades at a trailing P/E of 57 and a forward P/E of 67, with an operating margin of -12.9%. Total liabilities ballooned 431% year over year to $1.82 billion, freighted with roughly $1 billion of convertible debt. The C-suite has voted with its feet: CEO Andrew Dudum disposed of 436,190 shares at $24.77 on April 13, and the CFO, COO, and Chief Legal Officer all dumped stock in the weeks before the earnings release.
The Redirect: A Profitable Physician Network The smarter rotation is Doximity (NYSE:DOCS | DOCS Price Prediction), the LinkedIn for U.S. physicians, now trading at $26.45 with a $3.54 billion market cap. Three reasons it deserves the attention HIMS is hogging.
One: real profits. Fiscal Q3 2026, reported February 5, 2026, delivered revenue of $185.05 million, up 9.8% year over year, with adjusted EBITDA of $111.40 million at a 60.2% margin and net income of $61.56 million. Compare that 60% margin to the 7% Hims just posted while burning $33 million on GLP-1 restructuring.
Two: platform engagement is compounding. Doximity now serves over 1 million quarterly active prescribers, 720,000 workflow users, and 300,000-plus AI product users, with AI Scribe and DoxGPT growing 50% quarter over quarter. That is durable, sticky physician utility, well removed from consumer GLP-1 churn at $80 a month with declining revenue per subscriber.
Three: capital discipline. The board authorized a $500 million share repurchase program. CEO Jeff Tangney summed it up plainly: “We’re proud to deliver another quarter of strong profits and record engagement.” Hims is issuing convertibles to fund acquisitions and stock-based comp. Doximity is buying its own shares back with cash from operations.
The peer set sharpens the point. Teladoc Health (NYSE:TDOC) still bleeds cash, with a $200 million FY2025 net loss and a stock down 94.9% over five years. Veeva Systems (NYSE:VEEV) is the blue-chip benchmark, profitable at a 28.4% profit margin, but already a $26 billion market cap. Doximity sits in the sweet spot: small enough to compound, profitable enough to defend.
For a retirement-focused portfolio, the lesson is the one this writer has watched play out a dozen times. Hype-cycle stocks lose 50% and still aren’t cheap. Cash-generative platforms with engagement moats are what survive the next downcycle. The wreckage at Hims warrants caution; Doximity belongs on the research list.
Dr Martens PLC (LSE:DOCS) shares stomped 6.5% higher to 68.5p as the bookmaker returned to profit growth last year, thanks to reduced discounting as part of a turnaround centred on higher-quality sales.
The FTSE 250-listed group reported an adjusted pre-tax profit of £55 million in the year to 29 March, up 61% on the year before, while revenue fell 2.9% to £764.9 million.
Gross margin increased to 66.2% from 65.0% as the company cut clearance activity across both its own stores and wholesale operations.
Shoes were the "current growth engine", with sales up 19%, while boots are "showing signs of stabilisation" as sales fell 8%, and bags remained "a long-term growth opportunity, with good early results" as sales grew 15%.
Group net debt excluding leases fell to £69.7 million from £94.1 million. The dividend was maintained at 2.55p.
The company has spent the past two years stabilising the business after weaker demand and excess inventory hurt profits, particularly in the US.
Management, led by chief executive Ije Nwokorie, is now shifting from a “channel-led” model to a “consumer-first” strategy, with greater focus on full-price sales, selective retail investment and wholesale partnerships.
Nwokorie, a former senior director in Apple's retail arm, said the group was now moving into the “scale phase” of the strategy in the new 2027 financial year, with a focus on retail store estate rather than opening new sites.
“There is still work to do in pivoting the business,” he said, adding that demand for the brand continued to strengthen, with growing interest from collaborators and wholesale partners.
The company said it expected “further strong” profit growth this year despite geopolitical uncertainty and weaker consumer confidence in some markets.
Analyst John Stevenson at Peel Hunt said PBT was ahead of his £52.3 million forecast, but also includes a restatement of the US tariff amount of circa £4 million, which leaves underlying PBT "broadly in line with our forecasts if we strip this out".
He noted "good progress" around the group, with US direct-to-consumer sales up 14%, wholesale back in growth and a "strong order book" for autumn/winter.
"There is a wide range to consensus, at £61-71 million FY27 PBT, with numbers likely to move towards the lower end, in our view, reflecting the challenging trading in EMEA."
** UPDATE: Adds share price and broker comments **
SAN FRANCISCO--(BUSINESS WIRE)--Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced that Jeff Tangney, co-founder and CEO, will present at the William Blair 46th Annual Growth Stock Conference on Tuesday, June 2, 2026 at 4:40 p.m. Central Time. About Doximity Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 85% of U.S. physicians across all specialties a.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or the "Company") (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity's management highlighted AI cost pressure, with the Company's vice president of investor relations citing gross margin impact "driven by AI compute costs" and CEO Jeff Tangney warning that higher AI investment will "weigh on near-term margins."
On this news, Doximity's stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Shares of the leading digital platform for medical professionals, Doximity (DOCS 1.14%), dropped again earlier in May after the company reported fourth-quarter earnings, and the stock is now down a staggering 56% in 2026.
The big issue on the market's mind is whether the company can survive the threat that AI's rise may pose to Doximity's operations. For instance, the company's Scribe product, which transcribes and generates notes during doctor visits, is a somewhat "common" feature in today's AI-powered world.
Similarly, its Ask solution is a large language model tailored for doctors -- but may not offer enough differentiation from the leading AI companies today.
Image source: Getty Images.
However, focusing solely on these software risks undermines Doximity's deeply entrenched ecosystem.
First, Doximity is used by more than 85% of U.S. physicians -- a massive network. Second -- and thanks to this access to doctors -- the company counts all of the top 20 pharmaceutical manufacturers as advertising customers. Third, Doximity also counts the top 20 hospitals and healthcare systems as customers, whether for advertising or for its workflow solutions (the potentially disruptive software mentioned earlier).
Simply put, I don't think AI can replicate Doximity's strong ecosystem. In fact, I'd argue that the revolutionary technology could actually make the company's platform even stronger as it continues to incorporate AI into many of its solutions. In the fourth quarter, roughly half of Doximity's 800,000 active prescribers utilizing its workflow solutions used an AI tool. Similarly, seven of the top 20 hospitals purchased the company's new clinical AI suite.
That said, margins dipped in Q4 as Doximity's costs rose amid its "AI investment year," so this is something investors need to focus on in upcoming quarters.
Today's Change
(
-1.14
%) $
-0.23
Current Price
$
20.01
Ultimately, I think the AI fears are overdone -- especially given that HIPAA compliance, strict regulations, and considerable legal ramifications make it incredibly difficult for a big tech company to just "vibe code" a better healthcare AI solution. Trading at just 15 times free cash flow (accounting for stock-based compensation and Doximity's $700 million cash balance), Doximity remains a top buy right now for me, as the cyclical pharma advertising industry should eventually rebound.
NEW YORK, May 26, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity’s management highlighted AI cost pressure, with the Company’s vice president of investor relations citing gross margin impact “driven by AI compute costs” and CEO Jeff Tangney warning that higher AI investment will “weigh on near-term margins.”
On this news, Doximity’s stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Curious about Doximity's potential in the evolving healthcare tech landscape? Tune in as our experts rate its business strength and future growth prospects!
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or the "Company") (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity's management highlighted AI cost pressure, with the Company's vice president of investor relations citing gross margin impact "driven by AI compute costs" and CEO Jeff Tangney warning that higher AI investment will "weigh on near-term margins."
On this news, Doximity's stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, June 02, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity’s management highlighted AI cost pressure, with the Company’s vice president of investor relations citing gross margin impact “driven by AI compute costs” and CEO Jeff Tangney warning that higher AI investment will “weigh on near-term margins.”
On this news, Doximity’s stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or the "Company") (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity's management highlighted AI cost pressure, with the Company's vice president of investor relations citing gross margin impact "driven by AI compute costs" and CEO Jeff Tangney warning that higher AI investment will "weigh on near-term margins."
On this news, Doximity's stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Doximity Inc. (NYSE: DOCS) breached their fiduciary duties to shareholders.
If you currently own Doximity stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
Why Your Participation Matters:
Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Halper Sadeh LLC
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, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or "the Company") (NYSE: DOCS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Doximity revealed its Q4 and full year 2026 financial results on May 13, 2026. The Company fell short of consensus estimates for full year revenue. The Company's CEO warned that increased investment in AI will "weigh on near-term margins." Based on this news, shares of Doximity fell by 23% on the next day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
DOCS Investors Have Opportunity to Join Doximity, Inc. Fraud Investigation with the Schall Law Firm PR Newswire
LOS ANGELES, June 8, 2026
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or "the Company") (NYSE: DOCS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Doximity revealed its Q4 and full year 2026 financial results on May 13, 2026. The Company fell short of consensus estimates for full year revenue. The Company's CEO warned that increased investment in AI will "weigh on near-term margins." Based on this news, shares of Doximity fell by 23% on the next day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
www.schallfirm.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/docs-investors-have-opportunity-to-join-doximity-inc-fraud-investigation-with-the-schall-law-firm-302793532.html
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. (“Doximity” or the “Company”) (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity’s management highlighted AI cost pressure, with the Company’s vice president of investor relations citing gross margin impact “driven by AI compute costs” and CEO Jeff Tangney warning that higher AI investment will “weigh on near-term margins.”
On this news, Doximity’s stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or the "Company") (NYSE: DOCS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results. Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million. Doximity's management highlighted AI cost pressure, with the Company's vice president of investor relations citing gross margin impact "driven by AI compute costs" and CEO Jeff Tangney warning that higher AI investment will "weigh on near-term margins."
On this news, Doximity's stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or "the Company") (NYSE: DOCS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Doximity revealed its Q4 and full year 2026 financial results on May 13, 2026. The Company fell short of consensus estimates for full year revenue. The Company's CEO warned that increased investment in AI will "weigh on near-term margins." Based on this news, shares of Doximity fell by 23% on the next day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
Urban Outfitters (URBN - Free Report) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +15.81%. A quarter ago, it was expected that this clothing and accessories retailer would post earnings of $1.24 per share when it actually produced earnings of $1.43, delivering a surprise of +15.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Urban Outfitters, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.48 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.73%. This compares to year-ago revenues of $1.33 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Urban Outfitters shares have lost about 8.5% since the beginning of the year versus the S&P 500's gain of 7.4%.
What's Next for Urban Outfitters?While Urban Outfitters has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Urban Outfitters was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.64 on $1.64 billion in revenues for the coming quarter and $5.84 on $6.7 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Abercrombie & Fitch (ANF - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 27.
This teen clothing retailer is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of -19.5%. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level.
Abercrombie & Fitch's revenues are expected to be $1.12 billion, up 2.2% from the year-ago quarter.
Analysts See Big Upside for These 3 Retail Stocks Urban Outfitters NASDAQ: URBN reported record first-quarter fiscal 2027 sales and earnings, with management pointing to broad strength across its retail brands, continued growth at Nuuly and a strong wholesale performance.
Chief Executive Officer Dick Hayne said net sales rose 11% to $1.5 billion for the three months ended April 30, 2026, while earnings per share increased 12% to $1.30. He said the quarter marked the company’s seventh consecutive quarter of record sales and profits.
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Lululemon Slips as Rivals Rally: 3 Stocks to Watch“All retail segment brands delivered positive comps with standout performance from Free People and FP Movement,” Hayne said.
Retail Brands Post Positive Comps Co-President and Chief Operating Officer Frank Conforti said total URBN sales growth was partly driven by a 6% increase in retail segment comparable sales, with digital comps slightly ahead of store comps. Four of the company’s five brands posted record first-quarter sales, he said.
Analysts See 180% Upside for Rent the Runway: Should You Buy?Anthropologie delivered a 2% retail segment comp, extending a streak of more than five years of positive comps, according to Conforti. He said the brand had a slow start as it cleared slower-moving winter products, but performance improved in March and April as spring merchandise arrived. Strength in women’s apparel, shoes and home offset weakness in accessories.
Tricia Smith, global CEO of The Anthropologie Group, said in the question-and-answer portion that the brand’s March and April performance returned to the “higher end” of its low-single-digit comp trend. She cited strength in pants, denim, dresses, shoes, beauty and full-price furniture sales. Smith said May month-to-date performance was more similar to the end of the first quarter than its beginning.
The Urban Outfitters brand also continued to improve. Conforti said total Urban Outfitters sales rose more than 11%, while the global retail segment comp increased 9%, with strength in both North America and Europe. In North America, digital comps outpaced stores, while in Europe, stores led digital. He cited positive comps in women’s apparel, accessories and home, along with strong regular-price sales.
Hayne later said May sales to date were “essentially in line” with the company’s second-quarter plans. On Europe, he said the market remains “reasonably soft,” particularly in Germany due in part to high energy prices, but demand for the Urban Outfitters and Free People brands in Europe was “quite brisk,” with comp store sales posting double-digit gains.
Free People and FP Movement Lead Growth Sheila Harrington, global CEO of the Urban Outfitters and Free People groups, said total Free People Group revenue increased 17% year-over-year, driven by both wholesale and retail growth. Wholesale revenue rose 26%, while the retail segment grew 14%. The group posted a 10% retail segment comp, marking its 24th consecutive quarter of positive retail segment comps.
The Free People brand delivered total revenue growth of 12%, including a 9% retail segment comp. FP Movement revenue increased 32%, supported by a 15% retail segment comp, non-comp growth, six new store openings and 48% wholesale growth.
Harrington said the group achieved record first-quarter profitability, with both Free People and FP Movement producing record low markdown rates. She attributed the performance to strong regular-price selling, product execution and marketing. Free People saw broad-based strength in tops, bottoms, intimates and accessories, while FP Movement benefited from emphasis on bottoms and bras.
Harrington also outlined a longer-term strategy to manage Free People and FP Movement as “two independent ecosystems,” rather than a parent brand and sub-brand. She said Free People’s priorities include international expansion, domestic store and wholesale modernization, brand elevation and digital platform development. For FP Movement, she highlighted consumer expansion, domestic store growth, international expansion and product innovation.
Nuuly and Wholesale Continue Double-Digit Growth Nuuly revenue grew 35% in the quarter, driven by a 33% increase in average active subscribers, or more than 110,000 additional average active subscribers compared with the prior-year quarter, Conforti said. He said Nuuly was “on the doorstep” of a half-million active subscribers.
Nuuly generated $10 million in operating profit, representing a 6% operating profit rate. Conforti said the improvement reflected operating leverage as the business scaled, partially offset by marketing investments to support subscriber growth.
The wholesale segment posted a 25% revenue increase, driven by growth across specialty and department store accounts, Conforti said.
Margins, Tariffs and Fuel Costs in Focus URBN’s gross profit dollars increased 11%, while the gross profit rate declined 16 basis points to 36.6%. Conforti said the rate decline reflected a $5 million, or 36-basis-point, one-time benefit in the prior year, partially offset by improved markdown rates at Free People and Urban Outfitters.
SG&A expense increased 12% and deleveraged by 5 basis points. Conforti noted that SG&A included a $7 million, or 47-basis-point, benefit from the favorable resolution of a legal matter. He said higher store payroll, marketing investments and technology investments contributed to the increase.
Conforti said the company is navigating higher inbound freight costs and delivery expenses tied to fuel surcharges associated with the conflict in the Middle East. He said the company is assuming those costs remain consistent for the rest of the year, with an estimated negative impact of about 45 basis points to initial merchandise markup from inbound costs and 25 basis points from outbound delivery and freight expenses.
On tariffs, Conforti said the company expects approximately $100 million in refunds from IEPA tariffs imposed last spring and plans to record the refunds as a one-time benefit in the second quarter. He said URBN is planning conservatively for a 15% across-the-board tariff on imports in the second half of the year, adding that if the estimate is “reasonably accurate,” the company expects a net favorable benefit to initial merchandise markup in the second half, after factoring in additional fuel costs.
During the quarter, URBN repurchased 4.6 million shares for approximately $300 million, reducing outstanding shares by 5%, Conforti said. Net income rose to $116 million, and operating income increased 9% to a first-quarter record of $140 million.
Company Guides for High-Single-Digit Sales Growth Chief Financial Officer Melanie Marein-Efron said URBN is planning for second-quarter total company sales growth in the high single digits. Retail segment comps are expected to grow in the mid-single digits, driven by high-single-digit positive comps at Urban Outfitters and the Free People Group and low- to mid-single-digit positive comps at Anthropologie. Nuuly revenue is expected to grow in the mid- to high-20% range, while wholesale revenue is expected to grow in the mid-teens.
For the full fiscal year, Marein-Efron said the company continues to believe it can deliver positive high-single-digit total sales growth, supported by mid-single-digit retail comps, mid-20% Nuuly revenue growth and high-single-digit wholesale growth. She said full-year gross profit margins could increase approximately 25 basis points versus last year, with second-half benefit to initial merchandise markup.
URBN plans fiscal 2027 capital expenditures of approximately $475 million, with about 35% allocated to retail store expansion and support, 50% to logistics investments and 15% to technology investments and home office expansion. Marein-Efron said the company expects to open approximately 54 new stores and close about 19 stores during the year, with net growth primarily driven by FP Movement, Free People and Anthropologie.
Hayne closed by emphasizing the company’s diversified portfolio, saying the consistency of URBN’s recent performance stems from diversification across brands, categories, geographies and channels. He said the company’s customer base has remained resilient despite macroeconomic volatility.
About Urban Outfitters NASDAQ: URBNUrban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city's historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.
The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways NVIDIA Grew Earnings 140%, Revenues by 85%URBN, ELF, INTU Outperform ExpectationsMarkets Soared on a Possible End to the War on Iran Wednesday, May 20th, 2026
Market indexes advanced strongly off a slightly higher open this morning, with news that a deal to end the war in Iran may be within reach. A “letter of intent” to end the war following 30 days of negotiations has sent a surge of positive sentiment through the stock market. The Dow gained +645 points, +1.31%, the S&P 500 grew by +79 points, +1.08%, the Nasdaq +399, +1.54%, and the small-cap Russell 2000 +70 points, a gaudy +2.56%.
Time will tell how this all transpires, and last we heard there are some real disagreements regarding uranium enrichment, the Strait of Hormuz, etc. that may well be sticking points somewhere within the 30 days. But this war, which dates back to late February, would be happily ended by both the U.S. and Iran at this stage.
NVIDIA Reports Another Record Revenue Quarter
The world’s largest company by market cap ($5.38 Trillion and counting), NVIDIA (NVDA - Free Report) once again outperformed its lofty expectations for Q1 after today’s close. Earnings of $1.87 per share surpassed estimates by a solid dime, and up +140% year over year from $0.81 in the year-ago quarter. Revenues surged to a new record: $81.6 billion in the first three months of the year, +85% from Q1 last year.
The AI infrastructure business, one might say, was booming last quarter. Data Center grew by +92% year over year to $75.2 billion, with Compute revenue +77% to $60.4 billion, +18% quarter over quarter. Data Center Networking rose +199% from a year ago to $14.8 billion, +35% quarter over quarter. The company also announced an $80 billion share repurchase program, and upped their dividend a penny to $0.25 per share.
CEO Jensen Huang called this “the largest infrastructure expansion in human history,” and by dollar amount he’s probably right. Next-quarter revenues are expected to jump to $91.0 billion (the Zacks consensus had been for $84.1 billion), and this doesn’t include whatever data center compute revenues they may obtain from China in the quarter. To quote Mel Brooks, “It’s good to be da king!”
Other Earnings Reports After the Close: URBN, ELF, INTU
Urban Outfitters (URBN - Free Report) reported a solid Q1 this afternoon, with earnings of $1.30 per share nicely above the $1.12 projected, and swinging to growth year over year. Revenues of $1.48 billion up +11.4% from the prior year quarter. Free People grew +9.8%, Urban Outfitters flagship brand was +9.3%, and Anthropologie gained +1.9%. Shares are not up on this news, however, as the specter of tariffs remain.
e.l.f. Beauty (ELF - Free Report) posted an impressive fiscal Q4 after today’s close, beating on earnings by 3 cents to $0.32 per share on $449.3 million, up +35% from the prior-year quarter. The rhode acquisition assisted the company’s revenue gains, and the company came out ahead on its yearly numbers. It also expects improved growth in the new fiscal year.
Intuit (INTU - Free Report) also performed better than expected in its fiscal Q3 after the close, with earnings of $12.80 up +10% year over year and ahead of the $12.48 per share in the Zacks consensus. Revenues also grew +10% from the prior year quarter to $8.6 billion, ahead of the $8.52 billion projected. Consumer revenues grew +8%, including +7% for Turbo Tax and +15% for Credit Karma.
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Urban Outfitters (URBN - Free Report) reported $1.48 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 11.4%. EPS of $1.30 for the same period compares to $1.16 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.46 billion, representing a surprise of +1.73%. The company delivered an EPS surprise of +15.81%, with the consensus EPS estimate being $1.12.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Urban Outfitters performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of stores - Retail Operations - Anthropologie: 256 versus 255 estimated by three analysts on average.Number of stores - Retail Operations - Free People: 276 versus 275 estimated by three analysts on average.Number of stores - Retail Operations - Urban Outfitters: 252 versus the three-analyst average estimate of 253.Number of stores - Total URBN: 801 compared to the 792 average estimate based on three analysts.Comparable store sales - Retail Operations - YoY change: 5.6% compared to the 5.2% average estimate based on two analysts.Net sales by brand- Free People: $411.7 million versus $395.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.6% change.Net sales by brand- Anthropologie: $589.07 million versus $596.67 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.4% change.Net sales by brand- Urban Outfitters: $304.73 million versus $294.7 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.Net sales- Retail operations: $1.22 billion compared to the $1.2 billion average estimate based on two analysts. The reported number represents a change of +8% year over year.Net sales by brand- Menus & Venues: $8.56 million versus $9.48 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.4% change.Net sales- Wholesale operations: $93.17 million compared to the $85.64 million average estimate based on two analysts. The reported number represents a change of +24.8% year over year.Net sales- Subscription operations: $167.26 million versus $167.6 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +34.5% change.View all Key Company Metrics for Urban Outfitters here>>>
Shares of Urban Outfitters have returned -7.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways URBN beat Q1 earnings and sales estimates on strong Retail, Wholesale and Nuuly growth.Nuuly revenues jumped 34.5% as average active subscribers climbed 33.3% y/y.Urban Outfitters expects high-single-digit fiscal 2027 sales growth across all segments. Urban Outfitters, Inc. (URBN - Free Report) reported strong first-quarter fiscal 2027 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record first-quarter sales and profits, marking its seventh consecutive quarter of record performance.
Management highlighted that broad-based momentum across the Retail, Subscription and Wholesale segments, along with disciplined execution and strong customer engagement, supported the quarter’s performance.
During the quarter, all Retail segment brands posted positive comparable sales growth, led by standout performances at FP Group and Urban Outfitters. Nuuly continued to scale rapidly with strong subscriber growth and improving profitability, while the Wholesale segment delivered robust gains, driven by specialty account strength. Management also noted that investments in AI initiatives, customer acquisition and platform diversification are supporting long-term growth opportunities.
URBN’s Quarterly PerformanceThis lifestyle specialty retailer delivered earnings per share of $1.30, rising 12.1% year over year and surpassing the Zacks Consensus Estimate of $1.20 by 8.3%.
Net sales increased 11.4% year over year to $1,481.3 million, beating the consensus mark of $1,456 million by 1.7%. Strength spanned Retail, Wholesale and Subscription, supported by positive comparable sales at all retail brands and continued subscriber growth at Nuuly.
URBN Delivers Record Revenues on Segment MomentumTotal Retail segment net sales rose 8% year over year to $1.22 billion, while comparable Retail segment sales increased 5.6%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. The Comparable Retail segment sales increased 9.8% at FP Group, 9.3% at Urban Outfitters and 1.9% at Anthropologie. We estimated the Retail segment’s sales to increase 5.8% year over year.
Within the FP Group, total sales increased 16.6% year over year to $411.7 million due to continued momentum across both Wholesale and Retail segments. Free People brand sales increased 12%, while FP Movement brand sales jumped 32% during the quarter.
The Wholesale segment posted net sales growth of 24.8% to $93.2 million, driven by a 26.2% increase in FP Group wholesale revenues due to higher sales to specialty customers.
Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 34.5% year over year to $167.3 million, driven by a 33.3% increase in average active subscribers from the prior-year quarter. We estimated the Nuuly segment’s sales to rise 29.5% year over year.
Urban Outfitters Sees Gross Margin Dip on Prior-Year BenefitGross profit rose 10.9% year over year to $542.6 million in the fiscal first quarter, mainly driven by higher net sales during the period. However, the gross margin declined 16 basis points year over year to 36.6%, which beat our estimate of 36.4%. This decrease was largely due to a one-time gain of $4.8 million, or 36 basis points, recognized in the prior-year quarter that did not repeat this quarter. Excluding this item, the underlying gross margin expanded by 20 basis points, supported by lower markdowns at FP Group and Urban Outfitters, partly offset by deleveraging in initial merchandise costs related to tariffs.
The Retail segment gross profit increased 7% year over year to $460.9 million, though the segment gross margin slipped 18 bps to 37.7%. The Wholesale segment’s gross profit rose 31% to $33.8 million, with the gross margin expanding 178 bps to 36.3%, driven by higher sales to regular-price customers. Subscription segment gross profit climbed 39% to $47.9 million, while the segment gross margin improved 85 bps to 28.7%.
Selling, general and administrative (SG&A) expenses increased 11.7% year over year to $402.9 million. The increase was primarily driven by higher store payroll expenses to support the Retail segment sales growth, increased marketing investments to support customer acquisition and sales growth in the Retail and Subscription segments, and higher technology investments tied to AI initiatives. Our model estimated SG&A expenses to increase 11.1% year over year in the fiscal first quarter.
As a percentage of net sales, SG&A expenses deleveraged 5 bps to 27.2%, which lagged our estimate of 27.8%. The quarter included a benefit of $6.9 million, or 47 bps, related to the reversal of a litigation accrual, partially offset by deleverage from higher marketing and technology spending.
URBN reported operating income of $139.7 million, up 8.9% from $128.2 million in the prior-year quarter. However, the operating margin contracted 22 bps year over year to 9.4%, reflecting SG&A deleverage despite higher gross profit dollars.
Urban Outfitters Showcases Store GrowthIn the first quarter of fiscal 2027, this Zacks Rank #2 (Buy) company opened 11 stores and closed three stores. Store openings included two Anthropologie, three Free People and six FP Movement stores, while closures included one Free People, one Urban Outfitters and one Menus & Venues location.
As of April 30, 2026, URBN operated 252 Urban Outfitters stores across North America and Europe, along with associated digital platforms. The company also operated 256 Anthropologie stores and 276 FP Group stores, including 94 FP Movement locations. In addition, URBN operated eight Menus & Venues restaurants, seven Urban Outfitters franchisee-owned stores and two Anthropologie franchisee-owned stores.
The company plans to open 54 stores and close around 19 stores in fiscal 2027. Net new store growth will be primarily driven by the expansion of FP Movement, Free People and Anthropologie locations. Specifically, the company intends to open 21 FP Movement, 12 Free People, 13 Anthropologie and eight Urban Outfitters stores in fiscal 2027.
Urban Outfitters’ Financial Health SnapshotAs of April 30, 2026, Urban Outfitters had cash and cash equivalents of $301.4 million compared with $189.4 million in the prior-year period. Total shareholders’ equity stood at $2.61 billion as of the quarter-end.
As of April 30, 2026, total inventory increased 9.5% from the prior-year period. The Retail segment’s inventory rose 10.6%, while comparable Retail segment inventory increased 10%. In contrast, the Wholesale segment’s inventory declined 1.2%. The increase in the Retail segment inventory was primarily driven by higher net sales and early inventory receipts aimed at mitigating potential shipping disruptions related to the Middle East conflict.
During the first quarter of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of April 30, 2026, 10 million common shares remained authorized for repurchase under the existing program.
URBN Lays Out Q2 TargetsUrban Outfitters’ management expects second-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.
The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit positive comparable sales growth at Urban Outfitters and FP Group, while Anthropologie is expected to deliver low to mid-single-digit positive comparable sales growth. Nuuly is expected to post mid to high-20% revenue growth on the back of continued subscriber momentum, while the Wholesale segment is projected to generate mid-teens growth.
For the fiscal second quarter, URBN expects the gross profit margin to be flat to decline 25 basis points year over year. The anticipated pressure primarily reflects lower initial merchandise margins due to higher tariffs than the last year, along with elevated fuel surcharge costs tied to the Middle East conflict.
Management noted that current oil surcharges are expected to remain in place for the remainder of fiscal 2027 and are estimated to create a 70-basis-point unfavorable impact per quarter through higher inbound freight and delivery expenses.
Management expects fiscal second-quarter SG&A growth to be at or slightly ahead of sales growth due to higher marketing investments across brands to support customer acquisition, along with increased technology and AI-related investments.
URBN’s FY27 OutlookFor fiscal 2027, management continues to expect positive high-single-digit total company sales growth. This outlook is expected to be supported by mid-single-digit Retail segment comparable sales growth, mid-20% revenue growth at Nuuly and high-single-digit growth in the Wholesale segment.
URBN expects the fiscal 2027 gross profit margin to increase by 25 basis points year over year, with the second half anticipated to benefit from improved initial merchandise margins. The company also expects to receive $100 million in tariff refunds in the fiscal second quarter related to previously imposed IEEPA tariffs, which management plans to record as a one-time benefit.
For the full year, SG&A growth is expected to be in line with sales growth, while inventory growth is projected to remain at or below the pace of sales growth as the company focuses on improving product turns.
Capital expenditure for fiscal 2027 is planned at approximately $475 million. About 35% of the spending is expected to support retail store expansion and store-related investments, nearly 50% will be allocated toward logistics investments and automation capabilities, while the remaining 15% will support technology initiatives and home office expansion.
Management also expressed confidence in the underlying health of the business, highlighting strong momentum at Free People and FP Movement, continued progress at Urban Outfitters in North America and Europe, improving trends at Anthropologie and Nuuly’s path toward its long-term $1 billion revenue opportunity. The company believes its diversified portfolio positions URBN for continued positive comparable sales growth, margin expansion and record profitability in fiscal 2027.
URBN Stock Past 3-Month Performance
Image Source: Zacks Investment Research
Shares of this company have gained 8.7% in the past three months against the industry’s 16.7% decline.
Other Stocks to ConsiderWe have highlighted three other top-ranked stocks, namely, Tapestry, Inc. (TPR - Free Report) , Victoria's Secret & Co. and Levi Strauss & Co. (LEVI - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and a decline of 13.2%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently has a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago reported numbers.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.
Urban Outfitters, Inc. (NASDAQ:URBN) stock is edging up Thursday after the company reported first-quarter earnings on Wednesday after the market closed. Here’s a rundown of the report.
URBN stock is trading in a tight range. What’s the outlook for URBN shares? Q1 HighlightsUrban reported earnings per share of $1.30, beating the consensus estimate of $1.16. In addition, it reported revenue of $1.48 billion, beating the consensus estimate of $1.44 billion and representing. 11.4% year-over-year increase.
Total Retail segment net sales increased 8.0%, while comparable Retail segment net sales rose 5.6%.
The company said the increase in comparable Retail segment net sales was driven by high single-digit growth in digital channel sales and mid single-digit growth in retail store sales.
Comparable Retail segment net sales increased 9.8% at FP Group, 9.3% at Urban Outfitters and 1.9% at Anthropologie.
Subscription segment net sales increased 34.5%, primarily driven by a 33.3% increase in average active subscribers compared to the prior-year quarter.
Wholesale segment net sales increased 24.8%, driven by a 26.2% increase in FP Group wholesale sales due to higher sales to specialty customers.
"We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps’ at all brands and impressive double-digit growth in both our Wholesale and Subscription segments," said CEO Richard A. Hayne.
"Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in URBN’s continued success," Hayne added.
As of April 30, total inventory increased 9.5% year-over-year to reflect higher sales levels and early receipts intended to reduce potential shipping delay risks tied to the Middle East conflict.
Urban also said it repurchased and retired 4.6 million shares for approximately $300 million during the quarter. As of April 30, 10 million shares remained available under the company's repurchase program.
Urban Shares Edge HigherURBN Price Action: At the time of publication, Urban shares are trading 0.99% higher at $72.38, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Urban Outfitters Inc (NASDAQ:URBN) reported better-than-expected earnings for the first quarter on Wednesday.
The company posted quarterly earnings of $1.30 per share which beat the analyst consensus estimate of $1.16 per share. The company reported quarterly sales of $1.481 billion which beat the analyst consensus estimate of $1.449 billion.
“We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps’ at all brands and impressive double-digit growth in both our Wholesale and Subscription segments,” said Richard A. Hayne, Chief Executive Officer. “Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in URBN’s continued success.”
Urban Outfitters shares fell 0.5% to trade at $71.30 on Thursday.
These analysts made changes to their price targets on Urban Outfitters following earnings announcement.
B of A Securities analyst Lorraine Hutchinson maintained the stock with a Buy and raised the price target from $85 to $90. JP Morgan analyst Matthew Boss maintained the stock with an Overweight rating and raised the price target from $94 to $97. Considering buying URBN stock? Here’s what analysts think:
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Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Urban Outfitters (URBN - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 0.9%, the stock of this clothing and accessories retailer is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. URBN meets this criterion too, as the stock gained 11.1% over the past 12 weeks.
Moreover, the momentum for URBN is fast paced, as the stock currently has a beta of 1.23. This indicates that the stock moves 23% higher than the market in either direction.
Given this price performance, it is no surprise that URBN has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped URBN earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, URBN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. URBN is currently trading at 0.99 times its sales. In other words, investors need to pay only 99 cents for each dollar of sales.
So, URBN appears to have plenty of room to run, and that too at a fast pace.
In addition to URBN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
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Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Founded in 1970 and based in Philadelphia, Pennsylvania, Urban Outfitters Inc. (URBN - Free Report) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gifts products. The company’s merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. The company has operations in the United States, Canada and Europe.
URBN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. URBN has a Momentum Style Score of A, and shares are up 9.4% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.14 to $5.97 per share. URBN also boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URBN should be on investors' short list.
Urban Outfitters (URBN) remains a buy as Q1 2027 demonstrates broad-based recovery and growth across all segments. UO's turnaround is now driven by regular-price sales, while FP Group and Nuuly are emerging as significant, high-quality growth drivers. Nuuly's subscription model is scaling profitably, contributing $10.1 million EBIT and nearing half a million active subscribers.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.98; value investors should take notice.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $5.97 per share. URBN boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URBN should be on investors' short list.
Urban Outfitters Inc. NASDAQ: URBN delivered a strong first quarter, posting record sales and earnings that topped Wall Street expectations. The results extended the retailer's recent run of strong quarters and highlighted continued strength across its brands.
Investors were pleased with the results, sending shares modestly higher following the earnings release. Since then, however, the stock has drifted lower. The pullback may reflect concerns about tariffs and freight costs, or perhaps some profit-taking after the stock hit an all-time high in January.
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Record Results Driven by Strength Across BrandsFor the first quarter of fiscal 2027, Urban Outfitters, whose portfolio includes retail brands such as Free People, Anthropologie, and Urban Outfitters, reported earnings of $1.30 per share, up from $1.16 a year ago and 18 cents ahead of Wall Street expectations. Revenue rose 11.4% year over year to $1.48 billion, beating estimates by nearly $17 million.
"Our teams delivered another outstanding quarter, exceeding our plans and setting new sales and operating profit records," Chief Operating Officer Frank Conforti said on the earnings call. "All our retail segment brands delivered positive retail segment comps, while four of our five brands posted record first quarter sales."
Free People and FP Movement were particularly strong performers during the quarter, with Free People delivering 12% revenue growth and FP Movement reporting a 32% increase in brand revenue. Together, the FP Group achieved record first-quarter profitability, benefiting from record-low markdown rates, strong store performance, and leverage within the wholesale channel.
The company's clothing rental subscription service, Nuuly, and its wholesale segment also delivered strong results, with revenue increasing 35% and 25%, respectively.
Company Could See High-Single-Digit Sales GrowthDuring the earnings call, Chief Financial Officer Melanie Marein-Efron said Urban Outfitters is off to a solid start in the second quarter and could achieve high-single-digit sales growth in both Q2 and the full fiscal year.
She cautioned, however, that Q2 gross margins could be flat to down about 25 basis points due to lower initial merchandise margins (IMU), higher tariffs, and fuel surcharges tied to the Middle East conflict.
Despite those headwinds, gross margins could expand by about 25 basis points for the full year, aided by an improvement in IMU during the second half. The outlook assumes tariffs remain at 10% through July before increasing to a blended rate of 15% in the second half of FY2027. It also incorporates a roughly 70-basis-point quarterly headwind from elevated fuel surcharges.
Stock Takes a Breather After Strong RunInvestors appeared to anticipate the strong quarter, as Urban Outfitters shares rose more than 4% ahead of the earnings release on higher-than-normal trading volume. The stock gained another nearly 3% in the session following the report, but has since given back those gains. At a recent price of $71.36, shares are trading roughly in line with their pre-earnings level.
Despite the recent pullback, Urban Outfitters has been a strong performer over the longer term. Shares have climbed more than 88% over the past five years as the company has continued to grow sales, expand profitability, and execute well across its brands.
That momentum helped drive the stock to an all-time intraday high of roughly $84 in January. Since then, shares have drifted lower. They are down about 5% year to date, though they remain up more than 8% over the past three months.
Analysts Still See UpsideUrban Outfitters Stock Forecast Today12-Month Stock Price Forecast:
$87.18
12.67% Upside
Moderate Buy
Based on 14 Analyst Ratings
Current Price$77.38High Forecast$100.00Average Forecast$87.18Low Forecast$72.00Urban Outfitters Stock Forecast Details
Following the earnings report, two analysts raised their price targets on the stock, while one reiterated a Hold rating and another lowered its price target.
Overall, Wall Street remains bullish on Urban Outfitters. The stock carries a Moderate Buy rating based on 15 analyst ratings, including eight Buys and seven Holds. The consensus price target of just over $87 implies 20% upside from current levels, with price targets ranging from $72 to $100.
Urban Outfitters trades at about 13X earnings, below the retail industry's average of roughly 16X. However, the stock is more expensive than some apparel retail peers. Abercrombie & Fitch Co. NYSE: ANF, whose shares rallied following a strong first-quarter earnings report, trades at about 7X earnings. American Eagle Outfitters Inc. NYSE: AEO, which fell sharply after reporting first-quarter results, trades at roughly 10X earnings.
Short Interest Remains ElevatedDespite Wall Street's generally bullish outlook, short interest remains elevated. Roughly 7.2 million shares, or 12.4% of the float, were sold short as of May 15. While it's still elevated, the figure has declined from the levels seen over much of the past year, when more than 15% of the float was shorted.
Urban Outfitters continues to execute well, posting record sales and earnings while extending its recent run of strong quarters. While tariffs, freight costs, and a premium valuation relative to some peers may be giving investors pause, analysts remain broadly bullish. If their forecasts prove accurate, the stock could still see meaningful upside from current levels.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.05, while its industry has an average P/E of 15.08. URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80, all within the past year.
Investors should also recognize that URBN has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.22. URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14, over the past year.
Finally, investors should note that URBN has a P/CF ratio of 10.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. URBN's current P/CF looks attractive when compared to its industry's average P/CF of 15. Within the past 12 months, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Urban Outfitters has a Zacks Rank of #2 (Buy), while Ermenegildo Zegna N.V. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that URBN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
URBN currently has a forward P/E ratio of 12.16, while ZGN has a forward P/E of 32.20. We also note that URBN has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZGN currently has a PEG ratio of 4.71.
Another notable valuation metric for URBN is its P/B ratio of 2.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZGN has a P/B of 5.01.
These metrics, and several others, help URBN earn a Value grade of A, while ZGN has been given a Value grade of D.
URBN stands above ZGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.
After reaching an important support level, Urban Outfitters (URBN - Free Report) could be a good stock pick from a technical perspective. URBN surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Over the past four weeks, URBN has gained 5.1%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account URBN's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting URBN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
After reaching an important support level, Urban Outfitters, Inc. (URBN - Free Report) could be a good stock pick from a technical perspective. URBN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
URBN has rallied 5.1% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates URBN could be poised for a breakout.
The bullish case solidifies once investors consider URBN's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 3 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Investors should think about putting URBNon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Urban Outfitters (URBN - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 9.5%, the stock of this clothing and accessories retailer is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. URBN meets this criterion too, as the stock gained 14% over the past 12 weeks.
Moreover, the momentum for URBN is fast paced, as the stock currently has a beta of 1.22. This indicates that the stock moves 22% higher than the market in either direction.
Given this price performance, it is no surprise that URBN has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped URBN earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, URBN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. URBN is currently trading at 0.99 times its sales. In other words, investors need to pay only 99 cents for each dollar of sales.
So, URBN appears to have plenty of room to run, and that too at a fast pace.
In addition to URBN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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Jazz Pharmaceuticals (JAZZ - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on May 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis drugmaker is expected to post quarterly earnings of $4.77 per share in its upcoming report, which represents a year-over-year change of +183.9%.
Revenues are expected to be $978.64 million, up 9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.51% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Jazz?For Jazz, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.87%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Jazz will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Jazz would post earnings of $6.62 per share when it actually produced earnings of $6.64, delivering a surprise of +0.30%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Jazz doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Medical - Biomedical and Genetics industry, Krystal Biotech, Inc. (KRYS - Free Report) , is soon expected to post earnings of $1.49 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +24.2%. Revenues for the quarter are expected to be $112.15 million, up 27.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Krystal Biotech has been revised 0.6% down to the current level. Nevertheless, the company now has an Earnings ESP of +2.18%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Krystal Biotech will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
April 30, 2026 08:00 ET | Source: Krystal Biotech, Inc.
PITTSBURGH, April 30, 2026 (GLOBE NEWSWIRE) -- Krystal Biotech, Inc. (the “Company”) (NASDAQ: KRYS) announced today that the Company will be presenting on multiple programs at upcoming scientific conferences being held in May and June.
Presentation details are outlined below.
American Society of Gene & Cell Therapy (ASGCT) 2026 Annual Meeting
Poster Presentation
Title: Evaluation of KB409 and KB410, two HSV-1-based gene therapy vectors for the treatment of primary ciliary dyskinesia (PCD)Presenter: Bruce Nmezi, PhDDate and Time: May 12, 2026 from 5:00PM to 6:30PM ET American Thoracic Society (ATS) International Conference 2026
Oral Presentation
Title: Interim results of the CORAL-1 trial of KB407 for the treatment of cystic fibrosisPresenter: Jorge Lascano, MD, Professor of Medicine, Associate Director of the Adult Cystic Fibrosis Program, and Director of the Cystic Fibrosis Therapeutics Development Center at the University of FloridaDate and Time: May 20, 2026 at 10:03AM ET 2026 American Society of Clinical Oncology (ASCO) Annual Meeting
Poster Presentation
Title: Inhaled delivery of KB707, a novel HSV-based immunotherapy, in combination with pembrolizumab in advanced non-small cell lung cancer: a phase 1/2 studyPresenter: Wen Wee Ma, MBBS, Enterprise Vice Chair for Research and Director of the Novel Cancer Therapeutics Center at Cleveland Clinic Cancer InstituteDate and Time: May 31, 2026 from 9:00AM to 12:00PM CT Additional presentation details will be available to conference attendees. Following completion of each conference, presentation slides or posters, as applicable, will also be available to view online on the Investor section of the Company’s website.
About Krystal Biotech, Inc.
Krystal Biotech, Inc. (NASDAQ: KRYS) is a fully integrated, commercial-stage, global biotechnology company focused on the discovery, development and commercialization of genetic medicines to treat diseases with high unmet medical needs. VYJUVEK®, the Company’s first commercial product, is the first-ever redosable gene therapy and the first genetic medicine approved in the United States, Europe, and Japan for the treatment of dystrophic epidermolysis bullosa. The Company is rapidly advancing a robust preclinical and clinical pipeline of investigational genetic medicines. Krystal Biotech is headquartered in Pittsburgh, Pennsylvania. Visit www.krystalbio.com to learn more or follow us on LinkedIn and X.
Kymera Therapeutics, Inc. (KYMR - Free Report) came out with a quarterly loss of $0.71 per share versus the Zacks Consensus Estimate of a loss of $0.89. This compares to a loss of $0.82 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.40%. A quarter ago, it was expected that this company would post a loss of $0.77 per share when it actually produced a loss of $0.97, delivering a surprise of -25.97%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Kymera Therapeutics, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $34.37 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 211.90%. This compares to year-ago revenues of $22.1 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kymera Therapeutics shares have added about 4.8% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Kymera Therapeutics?While Kymera Therapeutics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kymera Therapeutics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.91 on $11.02 million in revenues for the coming quarter and -$3.65 on $36.89 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Krystal Biotech, Inc. (KRYS - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 4.
This company is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +20.8%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
Krystal Biotech, Inc.'s revenues are expected to be $112.15 million, up 27.2% from the year-ago quarter.
$116.4 million in 1Q VYJUVEK global revenue and $846.7 million since launch
Enrollment complete in KB803 (corneal abrasions in DEB patients) registrational study
On track for KB803 and KB801 (NK) registrational data readouts in 2026
FDA grants platform technology designation for KB407 (CF) and KB111 (HHD)
Strong balance sheet, ending the quarter with $1.0 billion in cash and investments
PITTSBURGH, May 04, 2026 (GLOBE NEWSWIRE) -- Krystal Biotech, Inc. (the “Company”) (NASDAQ: KRYS) today reported financial results for the first quarter ending March 31, 2026 and provided a business update.
“Following a successful 2025, we are entering 2026 with strong momentum, including two potential registrational study readouts and continued global expansion for VYJUVEK,” said Krish S. Krishnan, Chairman and Chief Executive Officer of Krystal Biotech. “With three pipeline products receiving platform designation, each development milestone strengthens the regulatory dataset, which could accelerate future programs and potentially reduce development risk. This compounding advantage underscores the value of the platform model we have been building since day one.”
VYJUVEK® (beremagene geperpavec-svdt, or B-VEC)
for the Treatment of Dystrophic Epidermolysis Bullosa (DEB)
The Company recorded $116.4 million in VYJUVEK net product revenue for the first quarter of 2026, an increase of 32% compared to the prior year first quarter. Gross margin for the first quarter of 2026 was 95%.
In the United States, the Company has secured over 695 reimbursement approvals for VYJUVEK and continues to broaden the prescriber base across the country, with over 60 new prescribers in the first quarter of 2026 and over 570 unique prescribers since launch. The Company has also launched patient support initiatives that leverage the recent VYJUVEK label update and increased administration flexibility to help DEB patients and their families conveniently integrate VYJUVEK into lifelong wound healing routines as their standard of care.
Overseas, the Company estimates that over 140 patients in Germany, France and Japan have been prescribed VYJUVEK. Pricing discussions with German and French reimbursement authorities are ongoing. The Company expects negotiations to continue until at least 2H 2026 in Germany and 2027 in France. The Company is also advancing pricing discussions with reimbursement authorities in Italy to enable a potential launch in 2H 2026 and recently initiated pricing discussions with Spanish reimbursement authorities. Based on initial interactions with Spanish authorities, the Company now expects to launch in Spain in 2H 2026. The timing of launch in other European jurisdictions will depend on the cadence and outcomes of regulatory interactions and pricing negotiations.
Ophthalmology
Two registrational readouts anticipated in 2026
KB803 for the treatment and prevention of corneal abrasions in DEB patients
The Company’s registrational, intra-patient, double-blind, decentralized, placebo-controlled study (IOLITE) with crossover design evaluating KB803 for the treatment and prevention of corneal abrasions in DEB patients is now fully enrolled. A total of 16 patients have been enrolled in the study. The primary efficacy endpoint of IOLITE will be the change in the average number of days per month with corneal abrasion symptoms while receiving KB803 versus placebo. The Company estimates that, as enrolled, IOLITE has at least 90% power to detect an effect size of at least 25% reduction in symptom days, allowing for a dropout rate up to 20%. Powering assumptions are based on the average symptomatic days per month and standard deviation data from subjects enrolled in the natural history study who would be eligible for IOLITE. The Company expects to report top-line results in 4Q 2026. Details about the study can be found at www.clinicaltrials.gov under NCT identifier: NCT07016750.
KB801 for the treatment of neurotrophic keratitis (NK)
The Company continues to enroll in EMERALD-1, the Company’s registrational, 1:1 randomized, double-masked, multicenter, placebo-controlled study evaluating KB801 for the treatment of NK. The Company expects to complete full enrollment of 60 patients in EMERALD-1 and announce data before year end. Details about the study can be found at www.clinicaltrials.gov under NCT identifier: NCT06999733.
Respiratory
KB407 for the treatment of cystic fibrosis (CF)
In April, the United States Food and Drug Administration (FDA) granted platform technology designation to the genetically modified, non-replicating herpes simplex virus type 1 viral vector used in KB407, providing the program with the same potential development and manufacturing efficiencies previously granted to KB801. Potential benefits of the designation include shortening of preclinical and chemistry, manufacturing, and controls (CMC) review cycles during development for follow-on products, creating a compounding regulatory advantage.
Based on interactions with the FDA, the Company is initiating an open label, single-arm study to evaluate safety of repeat dose KB407 for 24 weeks in five patients with CF who are ineligible for, do not tolerate, or do not benefit from modulator therapy. Dosing is expected to start later this month. Details of the study can be found at www.clinicaltrials.gov under NCT identifier: NCT05504837. The Company expects to complete enrollment in 2Q 2026 and report results before year end.
Concurrently, the Company is working closely with the FDA and the Cystic Fibrosis Foundation (CFF) on an innovative registrational study design and statistical analysis plan that explores using prospectively collected natural history data from the CFF to supplement placebo control data for evaluation of KB407 treatment effect. The Company will share the design and associated statistical analysis of the registrational study following alignment with the FDA, which is anticipated in 2H 2026, and expects to initiate the registrational study in 2027.
Previously, in January, the Company announced the successful delivery and expression of wild-type cystic fibrosis transmembrane conductance regulator protein in the lungs of patients with CF treated with KB407.
KB408 for the treatment of alpha-1 antitrypsin deficiency (AATD) lung disease
The Company continues to enroll in repeat dose Cohort 2B of SERPENTINE-1, the Company’s open label dose escalation study evaluating KB408 in adult patients with AATD with a Pi*ZZ or a Pi*ZNull genotype and expects to report interim data for this cohort in 2026. Cohort 2B is designed to evaluate the safety and tolerability of repeat KB408 dosing at the same dose level that was previously shown to safely deliver SERPINA1 to the lungs of AATD patients after a single dose. Details of the study can be found at www.clinicaltrials.gov under NCT identifier NCT06049082.
Dermatology
KB111 for the treatment of Hailey-Hailey disease (HHD)
In April, the FDA also granted platform technology designation to the genetically modified, non-replicating herpes simplex virus type 1 viral vector used in KB111, providing the program with the same regulatory efficiencies available for KB801 and KB407. The Company is developing an HHD-specific severity scale necessary for the clinical evaluation of KB111 and expects to complete scale development and validation in 1H 2026. Later this month, the Company also expects to initiate HALITE-1, an open-label study evaluating the safety of repeat dose KB111, administered once weekly for 12 weeks, in approximately seven patients with HHD. The Company expects to report HALITE-1 study results in 2H 2026. The Company also plans to submit the results from HALITE-1 along with the registrational study design for discussions with the FDA in 2H 2026 to enable a potential registrational study start in 2027.
Oncology
Inhaled KB707 for the treatment of non-small cell lung cancer (NSCLC)
The Company is enrolling patients with advanced NSCLC in a dose expansion cohort of KYANITE-1 evaluating inhaled KB707 in combination with chemotherapy. KYANITE-1 is a Phase 1/2 open label, multi-center, dose escalation and expansion study evaluating inhaled KB707, either as monotherapy or in combination, in patients with locally advanced or metastatic solid tumors of the lung. The Company expects to report interim efficacy data and potential registrational study plans later this year. Details of the study can be found at www.clinicaltrials.gov under NCT identifier NCT06228326.
Intratumoral KB707 for the treatment of injectable solid tumors
The Company continues to follow patients previously enrolled in OPAL-1, the Company’s Phase 1/2 open label, multi-center, dose escalation and expansion study evaluating intratumoral KB707 in patients with locally advanced or metastatic solid tumor malignancies. The Company will update development plans for intratumoral KB707 as additional safety and efficacy data are collected from the study. Details of the study can be found at www.clinicaltrials.gov under NCT identifier NCT05970497.
Aesthetics
KB304 for the treatment of wrinkles of the décolleté
Jeune Aesthetics, Inc., a wholly owned subsidiary of the Company, expects to initiate a Phase 2 study of its lead program KB304 in 2027.
Financial Results for the Three Months Ended March 31, 2026:
Product revenue, net totaled $116.4 million and $88.2 million for the three months ended March 31, 2026 and March 31, 2025, respectively.Cost of goods sold totaled $6.3 million and $5.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively.Research and development expenses for the three months ended March 31, 2026 were $15.3 million, inclusive of $2.2 million of stock-based compensation, compared to $14.3 million, inclusive of stock-based compensation of $2.5 million for the three months ended March 31, 2025.Selling, general, and administrative expenses for the three months ended March 31, 2026 were $41.0 million, inclusive of stock-based compensation of $11.4 million, compared to $32.6 million, inclusive of stock-based compensation of $11.0 million, for the three months ended March 31, 2025.Net income for the three months ended March 31, 2026 was $55.9 million, or $1.91 per common share (basic) and $1.83 per common share (diluted). Net income for the three months ended March 31, 2025 was $35.7 million, or $1.24 per common share (basic) and $1.20 per common share (diluted).For additional information on the Company’s financial results for the three months ended March 31, 2026, please refer to the Form 10-Q filed with the SEC. Financial Guidance
($ in millions) FY 2026 GuidanceNon-GAAP Research and Development (“R&D”) and Selling, General and Administrative (“SG&A”) expense(1) $175.0 - $195.0 (1) Refer to Non-GAAP Financial Measures section below for additional information. Non-GAAP combined R&D and SG&A expense guidance does not include stock-based compensation as we are currently unable to confidently estimate Full Year 2026 stock-based compensation expense. As such, we have not provided a reconciliation from forecasted non-GAAP to forecasted GAAP combined R&D and SG&A Expense in the above. This could materially affect the calculation of forward-looking GAAP combined R&D and SG&A Expense as it is inherently uncertain.
Conference Call
The Company will host an investor webcast on May 4, 2026, at 8:30 am ET.
Investors and the general public can access the live webcast at:
https://www.webcaster5.com/Webcast/Page/3018/53916.
For those unable to listen to the live conference call, a replay will be available for 30 days on the Investors section of the Company’s website at www.krystalbio.com.
About VYJUVEK
VYJUVEK is a non-invasive, topical, redosable genetic medicine designed to deliver two copies of the COL7A1 gene when applied directly to DEB wounds. VYJUVEK was designed to treat DEB at the molecular level by providing the patient’s skin cells the template to make normal COL7 protein, thereby addressing the fundamental disease-causing mechanism. VYJUVEK is approved in the United States, Europe, and Japan.
U.S. INDICATION
VYJUVEK is a herpes-simplex virus type 1 (HSV-1) vector-based gene therapy indicated for the treatment of wounds in adult and pediatric patients with dystrophic epidermolysis bullosa with mutation(s) in the collagen type VII alpha 1 chain (COL7A1) gene.
IMPORTANT SAFETY INFORMATION
Adverse Reactions
The most common adverse drug reactions (incidence >5%) were itching, chills, redness, rash, cough, and runny nose. These are not all the possible side effects with VYJUVEK. Call your healthcare provider for medical advice about side effects.
To report SUSPECTED ADVERSE REACTIONS, contact Krystal Biotech, Inc. at 1-844-557-9782 or FDA at 1-800-FDA-1088 or http://www.fda.gov/medwatch.
Contraindications
None.
Warnings and Precautions
VYJUVEK gel may be applied by a healthcare provider, a caregiver, or the patient.
After treatment, patients and caregivers should be careful not to touch treated wounds and dressings until the next dressing change.
Wash hands and wear protective gloves when changing wound dressings. Disinfect bandages from the first dressing change with a virucidal agent, and dispose of the disinfected bandages in a separate sealed plastic bag in household waste. Dispose of the subsequent used dressings in a sealed plastic bag in household waste.
Patients should avoid touching or scratching wound sites or wound dressings.
In the event of an accidental exposure flush with clean water for at least 15 minutes.
For more information, see full U.S. Prescribing Information.
About Krystal Biotech, Inc.
Krystal Biotech, Inc. (NASDAQ: KRYS) is a fully integrated, commercial-stage, global biotechnology company focused on the discovery, development and commercialization of genetic medicines to treat diseases with high unmet medical needs. VYJUVEK®, the Company’s first commercial product, is the first-ever redosable gene therapy and the first genetic medicine approved in the United States, Europe, and Japan for the treatment of dystrophic epidermolysis bullosa. The Company is rapidly advancing a robust preclinical and clinical pipeline of investigational genetic medicines. Krystal Biotech is headquartered in Pittsburgh, Pennsylvania. Visit www.krystalbio.com to learn more or follow us on LinkedIn and X.
About Jeune Aesthetics, Inc.
Jeune Aesthetics, Inc., a wholly-owned subsidiary of Krystal Biotech, Inc., is a biotechnology company leveraging a clinically validated gene delivery platform to develop products to fundamentally address – and reverse – the biology of aging and/or damaged skin. For more information, please visit http://www.jeuneinc.com.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as statements that are not historical facts, including statements about, among other topics, our combined R&D and SG&A expense guidance; our commercial launch of VYJUVEK in the U.S., Europe, and Japan, including our expectations regarding timing of pricing discussions in Germany and France and pricing discussions with the reimbursement authorities in Italy and Spain and potential commercial launches in those countries in 2H 2026; and our expectations for our product pipeline, including our clinical trial plans, enrollment in our clinical trials, the timing of development and validation of an HHD-specific evaluation scale, and the timing of discussions with the FDA and data read-outs from our clinical trials may constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Undue reliance should not be placed on the forward-looking statements in this press release. These statements are not guaranties of future performance and actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including uncertainties associated with regulatory review of clinical trials and applications for marketing approvals; the availability and commercial potential of VYJUVEK or our product candidates; and such other important factors as are set forth under the caption “Risk Factors” in the Company’s annual and quarterly reports on file with the U.S. Securities and Exchange Commission. The Company is providing the information in this press release as of the date hereof and undertakes no duty to update this information unless required by law.
Non-GAAP Financial Measures
This press release includes forward-looking combined R&D and SG&A expense guidance that is not required by, or presented in accordance with, U.S. GAAP and should not be considered as an alternative to R&D and SG&A expense or any other performance measure derived in accordance with GAAP. The Company defines non-GAAP combined R&D and SG&A expense as GAAP combined R&D and SG&A expense excluding stock-based compensation expense. The Company cautions investors that amounts presented in accordance with its definition of non-GAAP combined R&D and SG&A expense may not be comparable to similar measures disclosed by competitors because not all companies calculate this non-GAAP financial measure in the same manner. The Company presents this non-GAAP financial measure because it considers this measure to be an important supplemental measure and believes it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in the Company’s industry. Management believes that investors’ understanding of the Company’s performance is enhanced by including this forward-looking non-GAAP financial measure as a reasonable basis for comparing the Company’s ongoing results of operations. Management uses this non-GAAP financial measure for planning purposes, including the preparation of the Company’s internal annual operating budget and financial projections; to evaluate the performance and effectiveness of the Company’s operational strategies; and to evaluate the Company’s capacity to expand its business. This non-GAAP financial measure has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for R&D and SG&A expense or other financial statement data presented in accordance with GAAP in the Company’s consolidated financial statements. The Company has not provided a quantitative reconciliation of forecasted non-GAAP combined R&D and SG&A expense to forecasted GAAP combined R&D and SG&A expense because the Company is unable, without making unreasonable efforts, to calculate the reconciling item, stock-based compensation expenses, with confidence. This item, which could materially affect the computation of forward-looking GAAP combined R&D and SG&A expense, is inherently uncertain and depends on various factors, some of which are outside of the Company’s control.
March 31,
2026 December 31,
2025(in thousands)(unaudited) Balance sheet data: Cash and cash equivalents$501,313 $496,304Short-term investments 322,092 331,487Long-term investments 193,485 128,066Total assets 1,396,967 1,333,794Total liabilities 120,238 114,234Total stockholders’ equity$1,276,729 $1,219,560 Condensed Consolidated Statements of Operations:
Three Months Ended March 31, 2026 2025 Change(in thousands, except per share data)(unaudited) Revenue Product revenue, net$116,357 $88,183 $28,174Operating Expenses Cost of goods sold 6,323 5,028 1,295Research and development 15,331 14,256 1,075Selling, general, and administrative 41,014 32,647 8,367Total operating expenses 62,668 51,931 10,737Income from operations 53,689 36,252 17,437Other income Interest and other income, net 7,753 7,345 408Income before income taxes 61,442 43,597 17,845Income tax expense (5,510) (7,864) 2,354Net income$55,932 $35,733 $20,199 Net income per common share: Basic$1.91 $1.24 Diluted$1.83 $1.20 Weighted-average common shares outstanding: Basic 29,288 28,815 Diluted 30,507 29,871
Krystal Biotech, Inc. (KRYS - Free Report) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +26.21%. A quarter ago, it was expected that this company would post earnings of $1.62 per share when it actually produced earnings of $1.7, delivering a surprise of +4.94%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Krystal Biotech, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $116.36 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.75%. This compares to year-ago revenues of $88.18 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Krystal Biotech shares have added about 7.9% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Krystal Biotech?While Krystal Biotech has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Krystal Biotech was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.62 on $118 million in revenues for the coming quarter and $7.58 on $535 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Vir Biotechnology, Inc. (VIR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +98.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Vir Biotechnology, Inc.'s revenues are expected to be $175.55 million, up 5693.8% from the year-ago quarter.
Key Takeaways KRYS beat Q1 estimates with EPS of $1.83 and revenues of $116.4M, up 32% year over year.Vyjuvek drove all revenues, with strong uptake and 695 U.S. reimbursement approvals boosting access.Shares gained ~8% post-earnings. Pipeline progress and multiple 2026 data readouts add momentum. Krystal Biotech (KRYS - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.83, which surpassed the Zacks Consensus Estimate of $1.45. The reported EPS was up from $1.20 in the year-ago quarter.
Revenues of $116.4 million rose 32% year over year in the reported quarter, beating the Zacks Consensus Estimate of $112 million. Revenues came in solely from Vyjuvek sales.
The FDA approved Krystal’s lead drug, Vyjuvek, the first-ever revocable gene therapy, in 2023 for the treatment of patients aged six months or older with dystrophic epidermolysis bullosa (DEB), a rare and severe monogenic disease that affects the skin and mucosal tissues. The drug has also been approved by the FDA for the treatment of DEB patients from birth, with authorization for at-home administration by patients or their caregivers.
The company secured more than 695 reimbursement approvals for Vyjuvek in the United States, supporting nationwide access. Internationally, robust patient demand continues to drive steady uptake following the launches in Germany, France and Japan, with more than 140 patients being prescribed the therapy across these markets.
Shares of KRYS rose nearly 8% on Monday, likely driven by the better-than-expected earnings results.
Year to date, shares of KRYS have risen 16.4% against the industry’s 3.2% decline.
Image Source: Zacks Investment Research
KRYS’ Q1 Earnings in DetailThe top line comprises product revenues from Krystal’s only marketed drug, Vyjuvek.
Krystalgenerated $116.4 million in product revenues from Vyjuvek, up from $88.2 million in the year-ago quarter, driven by strong patient uptake.
The gross margin in the reported quarter was 95%.
Research and development (R&D) expenses were approximately $15.3 million, including stock-based compensation, up 7.5% year over year. Selling, general and administrative (SG&A) expenses totaled approximately $41 million, including stock-based compensation, up 25.6% from the year-ago level. This increase was primarily due to increased headcount, legal and consulting services, and marketing costs to support the global launches of Vyjuvek.
As of March 31, 2026, cash, cash equivalents and investments totaled approximately $1 billion compared with $955.9 million as of Dec. 31, 2025.
2026 GuidanceKrystal Biotech reiterated its non-GAAP combined R&D and SG&A expense guidance of $175 million to $195 million for full-year 2026.
KRYS' Recent Pipeline UpdatesFor Vyjuvek, pricing negotiations with reimbursement authorities remain ongoing in Germany and France and are expected to continue through at least the second half of 2026 and 2027, respectively. The company expects to launch the drug in Spain in the second half of 2026.
Krystal is also advancing a robust clinical pipeline of investigational genetic medicines in the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics.
On the respiratory front, the company has two candidates in its pipeline — KB407 and KB408.
The company is evaluating KB407 for the treatment of cystic fibrosis (CF). Based on discussions with the FDA, Krystal is initiating an open-label study to test repeat-dose KB407 in CF patients who cannot use or benefit from existing therapies. Patient enrollment is expected to be completed in the second quarter of 2026 and results are anticipated by the end of the year.
Concurrently, Krystal is collaborating with the FDA and the Cystic Fibrosis Foundation on an innovative registrational study design that may use real-world patient data to support evaluation of KB407’s treatment effect. It plans to finalize and share the study design following FDA alignment in the second half of 2026, with the registrational study expected to begin in 2027.
KB408 is being evaluated for the treatment of alpha-1 antitrypsin deficiency (AATD) lung disease. Enrollment is ongoing in repeat-dose Cohort 2B of the SERPENTINE-1 study, with interim results expected in 2026.
In the ophthalmology space, another candidate, KB803, is being evaluated in IOLITE, a phase III randomized, placebo-controlled crossover study for the treatment and prevention of corneal abrasions in DEB patients. Patient enrollment has been completed, with top-line data anticipated in the fourth quarter of 2026.
Krystal is also evaluating KB801 for the treatment of patients with neurotrophic keratitis (NK). A registrational, randomized, double-masked, placebo-controlled study, EMERALD-1, is evaluating the safety and tolerability of topical ocular administration of KB801 in patients with NK. Patient enrollment is currently ongoing and top-line data from the study is expected in 2026.
On the oncology front, Krystal has a promising candidate, KB707, which is being developed for the treatment of solid lung tumors.
Krystal is currently enrolling patients in the dose-expansion cohort of its phase I/II KYANITE-1 study, which is evaluating inhaled KB707 as monotherapy and in combination with chemotherapy in patients with advanced lung tumors.
In the aesthetics space, the company’s wholly owned subsidiary, Jeune Aesthetics, is currently developing KB304 for the treatment of wrinkles of the décolleté. The company expects to initiate a mid-stage study in 2027.
KRYS’ Zacks Rank & Stocks to ConsiderKrystal Biotech currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are Castle Biosciences (CSTL - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy) and Catalyst Pharmaceuticals (CPRX - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.42 to $1.40. Over the same period, loss per share estimates for 2027 have also narrowed from 79 cents to 78 cents. CSTL shares have lost 34.4% year to date.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.03 to $3.26. Over the same period, EPS estimates for 2027 have risen from $3.40 to $3.57. INDV shares have risen 8.6% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have declined from $2.82 to $2.79. Over the same period, EPS estimates for 2027 have surged from $3.20 to $3.28. CPRX shares have gained 24% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
Krystal Biotech Inc (NASDAQ:KRYS) reported upbeat earnings for the first quarter on Monday.
The company posted quarterly earnings of $1.83 per share which beat the analyst consensus estimate of $1.39 per share. The company reported quarterly sales of $116.357 million which beat the analyst consensus estimate of $112.132 million.
Krystal Biotech shares fell 1% to trade at $284.01 on Tuesday.
These analysts made changes to their price targets on Krystal Biotech following earnings announcement.
Evercore ISI Group analyst Gavin Clark-Gartner maintained Krystal Biotech with an Outperform rating and raised the price target from $295 to $300. Citigroup analyst Yigal Nochomovitz maintained the stock with a Buy and raised the price target from $371 to $378. Considering buying KRYS stock? Here’s what analysts think:
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