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The upcoming report from Bath & Body Works (BBWI - Free Report) is expected to reveal quarterly earnings of $0.29 per share, indicating a decline of 40.8% compared to the year-ago period. Analysts forecast revenues of $1.36 billion, representing a decline of 4.2% year over year.

The consensus EPS estimate for the quarter has been revised 3.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Bath & Body Works metrics that are commonly monitored and projected by Wall Street analysts.

Analysts expect 'Geographic Net Sales- Stores - U.S. and Canada' to come in at $1.07 billion. The estimate indicates a year-over-year change of -4%.

The consensus among analysts is that 'Geographic Net Sales- International' will reach $68.08 million. The estimate indicates a change of +6.4% from the prior-year quarter.

The average prediction of analysts places 'Geographic Net Sales- Direct - U.S. and Canada' at $228.33 million. The estimate indicates a change of -8.7% from the prior-year quarter.

The consensus estimate for 'Total Company-Operated Stores - Total Bath & Body Works - Total - Stores (EOP)' stands at 1,931 . The estimate compares to the year-ago value of 1,900 .

Based on the collective assessment of analysts, 'Total Company-Operated Stores - Total Bath & Body Works - Canada - Stores (EOP)' should arrive at 113 . The estimate is in contrast to the year-ago figure of 113 .

Analysts predict that the 'Company-operated U.S. Store Data - Average Store Size (selling square feet)' will reach 2.85 million. Compared to the present estimate, the company reported 2.85 million in the same quarter last year.

According to the collective judgment of analysts, 'Company-operated U.S. Store Data - Total Selling Square Feet' should come in at 5.17 million. Compared to the current estimate, the company reported 5.08 million in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Total Company-Operated Stores - Total Bath & Body Works - United States - Stores (EOP)' will likely reach 1,819 . The estimate is in contrast to the year-ago figure of 1,787 .

Analysts forecast 'Total Partner-Operated Stores - Total International - International - Stores (EOP)' to reach 549 . Compared to the current estimate, the company reported 489 in the same quarter of the previous year.

Analysts' assessment points toward 'Total Partner-Operated Stores - Total International - Total - Stores (EOP)' reaching 586 . The estimate compares to the year-ago value of 524 .

The collective assessment of analysts points to an estimated 'Total Partner-Operated Stores - Total International - International - Travel Retail - Stores (EOP)' of 37 . Compared to the current estimate, the company reported 35 in the same quarter of the previous year.

View all Key Company Metrics for Bath & Body Works here>>>

Bath & Body Works shares have witnessed a change of -17.8% in the past month, in contrast to the Zacks S&P 500 composite's +4.6% move. With a Zacks Rank #4 (Sell), BBWI is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Delivers Q1 net sales and adjusted earnings per share results above guidanceFirst quarter net sales of $1.4 billion, down 3%. Earnings per diluted share of $0.90; Adjusted earnings per diluted share of $0.32Reaffirms full-year 2026 guidance of net sales down 4.5% to down 2.5%, earnings per diluted share of $3.00 to $3.25; and adjusted earnings per diluted share of $2.40 to $2.65 Chief Financial Officer Eva Boratto to step down June 12; Company appoints interim CFO with active search in progress COLUMBUS, Ohio, May 27, 2026 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) today reported first quarter 2026 results.

Daniel Heaf, chief executive officer of Bath & Body Works, commented, “Our first-quarter results exceeded guidance, but remain below the standard our brand is capable of delivering. That reality reinforces the urgency with which we are executing the Consumer First Formula. Our efforts to strengthen our hero categories, modernize the brand, and expand our reach are beginning to resonate with consumers, and we are encouraged by the early proof points we are seeing.”

“We believe that the foundation we are building will drive improved performance over time, with the impact expected to build through the balance of 2026 and more meaningfully into 2027, as we position the company to return to sustainable, durable growth.”

First Quarter 2026 Results

The company reported net sales of $1,378 million for the quarter ended May 2, 2026, a decrease of 3% compared to net sales of $1,424 million for the quarter ended May 3, 2025.

Earnings per diluted share were $0.90 for the first quarter of 2026, compared to $0.49 last year. First quarter operating income was $231 million compared to $209 million last year, and net income was $183 million compared to $105 million last year.

Reported first quarter 2026 results included an $88 million pre-tax gain ($66 million after tax), net of legal fees, related to favorable settlements of payment card interchange fee litigation, aggregate pre-tax costs of $8 million ($6 million after tax) associated with business transformation activities, an $8 million pre-tax loss ($6 million after tax) related to the extinguishment of outstanding debt, a $3 million pre-tax gain ($3 million after tax) related to the sale of a non-core asset and a $62 million tax benefit due to the resolution of certain tax matters. Excluding these items, adjusted earnings per diluted share for the first quarter of 2026 was $0.32, adjusted operating income was $151 million and adjusted net income was $65 million.

At the conclusion of this press release is a reconciliation of reported‐to‐adjusted results, including a description of the adjusted items.

2026 Guidance

The company is maintaining its full-year 2026 guidance of net sales to decline between 4.5% to 2.5% compared to $7,291 million in fiscal 2025. The company is also maintaining its full-year 2026 earnings per diluted share guidance of between $3.00 and $3.25 compared to $3.11 in fiscal 2025 and full-year 2026 adjusted earnings per diluted share guidance of between $2.40 and $2.65, compared to adjusted earnings per diluted share of $3.21 in 2025. There are no share repurchases or tariff refunds assumed in our outlook. In fiscal 2026, we expect to generate free cash flow of approximately $600 million.

For the second quarter of 2026, the company is forecasting net sales to decline between 5% to 3% compared to $1,549 million in the second quarter of 2025. Second quarter 2026 earnings per diluted share is expected to be between $0.20 and $0.25, compared to earnings per diluted share of $0.30 and adjusted earnings per diluted share of $0.37 in the second quarter of 2025.

At the conclusion of this press release is a reconciliation of our guidance-to-adjusted guidance, including a description of the adjusted items.

For a reconciliation of our reported GAAP to adjusted non-GAAP earnings per diluted share for fiscal 2025 and the second quarter of 2025, refer to our Annual Report on Form 10-K, filed with the SEC on March 12, 2026, and our Quarterly Report on Form 10-Q, filed with the SEC on August 28, 2025, respectively.

Chief Financial Officer Transition

Chief Financial Officer Eva Boratto will step down from her role effective June 12 to pursue another professional opportunity. The company has initiated a comprehensive search process, supported by a leading executive search firm, to identify its next Chief Financial Officer.

Tom Javitch has been appointed Interim Chief Financial Officer effective upon Boratto’s departure. Javitch has been with Bath & Body Works for more than 16 years and L Brands for 25 years. He has held a number of senior finance leadership roles across the organization, including Executive Vice President of Brand Finance of Bath & Body Works.

Daniel Heaf said, “We are grateful to Eva for her leadership and many contributions to Bath & Body Works during an important period for the company. We thank her for her partnership and wish her continued success in her next chapter. While we search for a successor, I’m confident in Tom Javitch’s interim leadership, deep understanding of Bath & Body Works and expertise across the business—from product to store operations to supply chain.”

Boratto said, “It has been a pleasure to serve on the leadership team at Bath & Body Works, and I would like to thank Daniel, my colleagues in the finance organization, the Board and all of our associates for the support during my time at this remarkable company. I leave with confidence in Daniel’s leadership and the strategy he has put in place, and I look forward to watching as Bath & Body Works continues to regain momentum in the marketplace.”  

Earnings Call and Additional Information

Bath & Body Works, Inc. will conduct its first quarter earnings call at 8:30 a.m. ET on May 27th. To listen, call 877-407-9219 (international dial-in number: 412-652-1274). For an audio replay, call 877-660-6853 (international replay number: 201-612-7415); access code 13760165 or log onto www.BBWInc.com. A slide presentation has been posted on the company’s Investor Relations website that summarizes certain information in the company‘s prepared remarks from the earnings call as well as some additional facts and figures regarding the company’s operating performance and guidance.

ABOUT BATH & BODY WORKS
Bath & Body Works is a global leader in personal care and home fragrance, driven by the belief that everybody deserves to feel good.

The brand’s beloved and iconic scents are expertly crafted for exceptional performance and a luxury fragrance experience. Formulated with thoughtfully chosen ingredients, Bath & Body Works’ body care products are available in multiple forms including fine fragrance mist, body cream, lotion, eau de parfum, body wash, hand soap, sanitizer and more. The brand’s famous 3-wick candles are made with rich, high quality fragrance oils layered throughout a premium soy wax base, for up to 45 hours of room-filling fragrance.

Consumers can shop Bath & Body Works anytime and anywhere they choose, from welcoming, in-store experiences at more than 1,900 stores in the U.S. and Canada, 500-plus international locations, online at bathandbodyworks.com and on Amazon.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our Company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “target,” “goal” and any similar expressions may identify forward-looking statements. There are risks, uncertainties and other factors that in some cases have affected and, in the future, could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this report or otherwise made by the Company or our management. These factors can be found in Item 1A. Risk Factors in our 2025 Annual Report on Form 10-K and our subsequent filings.

We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

We announce material financial and operational information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about the Company, our business and our results of operations may also be announced by posts on our accounts on social media channels, including the following: Facebook, Instagram, X, LinkedIn, Pinterest, TikTok and YouTube.  The information that we post through these social media channels and on our website may be deemed material. As a result, we encourage investors, the media and others interested in the Company to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. The list of social media channels we use may be updated from time to time on our investor relations website. 

For further information, please contact:

Bath & Body Works, Inc.:
Luke Long
[email protected]

Media Relations
Emmy Beach
[email protected]

BATH & BODY WORKS, INC.
First Quarter 2026 Total Sales (In millions):
  First Quarter  2026  2025 % ChangeStores - U.S. and Canada (a)$1,062 $1,110 (4.3%)Direct - U.S. and Canada 246  250 (1.5%)International and Other (b) 70  64 9.0%Total Bath & Body Works$1,378 $1,424 (3.2%)__________        (a) Results include fulfilled buy online pick up in store orders.(b) Results include royalties associated with franchised stores, as well as international and domestic wholesale sales.  Total Company-operated Stores:

 Stores     Stores 1/31/2026 Opened Closed 5/2/2026United States1,814 13 (17) 1,810Canada113 — —  113Total Bath & Body Works1,927 13 (17) 1,923          Total Partner-operated Stores:

 Stores     Stores 1/31/2026 Opened Closed 5/2/2026International536 8 (2) 542International - Travel Retail37 — —  37Total International (a)573 8 (2) 579__________        (a) Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations.  BATH & BODY WORKS, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In millions, except per share amounts)     First Quarter  2026   2025 Net Sales$1,378  $1,424 Costs of Goods Sold, Buying and Occupancy (791)  (778)Gross Profit 587   646 General, Administrative and Store Operating Expenses (356)  (437)Operating Income 231   209 Interest Expense (69)  (71)Other Income, Net 4   8 Income Before Income Taxes 166   146 Benefit (Provision) for Income Taxes 17   (41)Net Income$183  $105     Net Income per Diluted Share$0.90  $0.49     Weighted Average Diluted Shares Outstanding 202   215          BATH & BODY WORKS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In millions)  May 2,
2026 May 3,
2025ASSETS   Current Assets:   Cash and Cash Equivalents$820  $636 Accounts Receivable, Net 98   103 Inventories 782   869 Easton Assets Held for Sale 81   97 Other 118   115 Total Current Assets 1,899   1,820 Property and Equipment, Net 1,106   1,111 Operating Lease Assets 974   970 Goodwill 628   628 Trade Name 165   165 Deferred Income Taxes 110   133 Other Assets 81   54 Total Assets$4,963  $4,881 LIABILITIES AND EQUITY (DEFICIT)   Current Liabilities:   Accounts Payable$557  $452 Accrued Expenses and Other 513   495 Current Operating Lease Liabilities 206   201 Income Taxes 101   146 Total Current Liabilities 1,377   1,294 Deferred Income Taxes 115   23 Long-term Debt 3,613   3,886 Long-term Operating Lease Liabilities 894   895 Other Long-term Liabilities 95   233 Total Equity (Deficit) (1,131)  (1,450)Total Liabilities and Equity (Deficit)$4,963  $4,881          BATH & BODY WORKS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)  First Quarter  2026   2025 Operating Activities:   Net Income$183  $105 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:   Depreciation of Long-lived Assets 61   64 Share-based Compensation Expense 8   10 Gain on Sale of Non-core Asset (3)  — Loss on Extinguishment of Debt 8   — Tax Benefit from Resolution of Certain Tax Matters (62)  — Changes in Assets and Liabilities:   Accounts Receivable 82   103 Inventories (83)  (134)Accounts Payable, Accrued Expenses and Other 34   14 Income Taxes Payable 29   34 Other Assets and Liabilities (13)  (8)Net Cash Provided by (Used for) Operating Activities 244   188     Investing Activities:   Capital Expenditures (49)  (37)Proceeds from Sale of Non-core Asset 8   — Other Investing Activities (1)  (2)Net Cash Used for Investing Activities (42)  (39)    Financing Activities:   Payments for Long-term Debt (289)  — Repurchases of Common Stock —   (136)Dividends Paid (40)  (43)Tax Payments related to Share-based Awards (3)  (4)Other Financing Activities (3)  (5)Net Cash Used for Financing Activities (335)  (188)    Effects of Exchange Rate Changes on Cash and Cash Equivalents —   1 Net Decrease in Cash and Cash Equivalents (133)  (38)Cash and Cash Equivalents, Beginning of Year 953   674 Cash and Cash Equivalents, End of Period$820  $636          BATH & BODY WORKS, INC.ADJUSTED FINANCIAL INFORMATION(Unaudited)(Dollars in millions, except per share amounts)     First Quarter  2026   2025Reconciliation of Reported Operating Income to Adjusted Operating IncomeReported Operating Income$231  $209Interchange Fee Settlements (88)  —Business Transformation Activities 8   —Adjusted Operating Income$151  $209    Reconciliation of Reported Net Income to Adjusted Net IncomeReported Net Income$183  $105Interchange Fee Settlements (88)  —Business Transformation Activities 8   —Loss on Extinguishment of Debt 8   —Gain on Sale of Non-core Asset (3)  —Tax Effect of Adjustments 19   —Tax Benefit from Resolution of Certain Tax Matters (62)  —Adjusted Net Income$65  $105    Reconciliation of Reported Net Income per Diluted Share to Adjusted Net Income per Diluted ShareReported Net Income per Diluted Share$0.90  $0.49Interchange Fee Settlements (0.43)  —Business Transformation Activities 0.04   —Loss on Extinguishment of Debt 0.04   —Gain on Sale of Non-core Asset (0.02)  —Tax Effect of Adjustments 0.09   —Tax Benefit from Resolution of Certain Tax Matters (0.31)  —Adjusted Net Income per Diluted Share$0.32  $0.49        See Notes to Adjusted Financial Information.

BATH & BODY WORKS, INC.FORECASTED ADJUSTED FINANCIAL INFORMATION(Unaudited)(In millions, except per share amounts)     Full-Year  2026 Reconciliation of Forecasted Net Income Per Diluted Share to Forecasted Adjusted Net Income per Diluted Share Low HighForecasted Net Income per Diluted Share$3.00  $3.25 Interchange Fee Settlements (0.43)  (0.43)Business Transformation Activities 0.04   0.04 Loss on Extinguishment of Debt 0.04   0.04 Gain on Sale of Non-core Asset (0.02)  (0.02)Tax Effect of Adjustments 0.09   0.09 Tax Benefit from Resolution of Certain Tax Matters (0.31)  (0.31)Forecasted Adjusted Net Income Per Diluted Share$2.40  $2.65        Full-YearReconciliation of Forecasted Net Cash Provided by Operating Activities to Forecasted Free Cash Flow  2026 Forecasted Net Cash Provided by Operating Activities  $870 Forecasted Capital Expenditures   (270)Forecasted Free Cash Flow  $600        See Notes to Adjusted Financial Information.

BATH & BODY WORKS, INC.
NOTES TO ADJUSTED FINANCIAL INFORMATION
(Unaudited)

The adjusted financial information should not be construed as an alternative to the results determined in accordance with generally accepted accounting principles. Further, the company’s definitions of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted financial information is useful for the assessment of the operations of the company because the adjusted items are not indicative of the company’s ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures for the purpose of evaluating performance internally. The adjusted financial information should be read in conjunction with the company’s historical financial statements and notes thereto contained in the company’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K.

The “Adjusted Financial Information” provided in the attached reflects the following non-GAAP financial measures:

Fiscal 2026

In the first quarter of 2026, adjusted results exclude the following:

An $88 million pre-tax gain ($66 million after tax), included as a reduction to General, Administrative and Store Operating Expenses, related to cash proceeds received, net of legal fees, for favorable settlements of payment card interchange fee litigation;Aggregate pre-tax costs of $8 million ($6 million after tax), primarily included in General, Administrative and Store Operating Expenses, resulting from business transformation activities in connection with the Consumer First Formula;An $8 million pre-tax loss ($6 million after tax), included in Other Income, Net, related to the repurchase and early extinguishment of outstanding debt;A $3 million pre-tax gain ($3 million after tax), included in Other Income, Net, related to the sale of a non-core asset; andA $62 million tax benefit associated with the resolution of certain tax matters.
Full-year 2026 Forecasted Adjusted Net Income per Diluted Share excludes the adjustments referenced above.

Fiscal 2025

There were no adjustments to results in the first quarter of 2025.

Forecasted Free Cash Flow

Our Forecasted Free Cash Flow is defined as Forecasted Net Cash Provided by Operating Activities less our Forecasted Capital Expenditures. Our Forecasted Free Cash Flow is a non-GAAP financial measure which we believe is useful to analyze our anticipated ability to generate cash. Our Forecasted Free Cash Flow calculation may not be comparable to similarly-titled measures reported by other companies. Our Forecasted Free Cash Flow should be evaluated in addition to, and not considered a substitute for, other GAAP financial measures.

Bath & Body Works (BBWI - Free Report) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.80%. A quarter ago, it was expected that this owner of Victoria's Secret, Bath & Body Works and other chain stores would post earnings of $1.77 per share when it actually produced earnings of $2.05, delivering a surprise of +15.82%.

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

Bath & Body Works, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $1.38 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $1.42 billion. The company has topped consensus revenue estimates two 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.

Bath & Body Works shares have lost about 11.7% since the beginning of the year versus the S&P 500's gain of 9.8%.

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $1.49 billion in revenues for the coming quarter and $2.61 on $7.09 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 - Miscellaneous is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Build-A-Bear (BBW - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on May 28.

This toy retailer is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of -35%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Build-A-Bear's revenues are expected to be $130.11 million, up 1.3% from the year-ago quarter.

Bath & Body Works, Inc. just reported its Q1, and the results came in ahead of expectations. The struggling personal-care retailer is in the midst of an operational turnaround in an effort to return the business to growth. Today's BBWI results show progress, though there is clearly still a journey ahead.

For the quarter ended April 2026, Bath & Body Works (BBWI - Free Report) reported revenue of $1.38 billion, down 3.2% over the same period last year. EPS came in at $0.32, compared to $0.49 in the year-ago quarter.

The reported revenue represents a surprise of +1.01% over the Zacks Consensus Estimate of $1.36 billion. With the consensus EPS estimate being $0.29, the EPS surprise was +10.8%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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 Bath & Body Works performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Company-Operated Stores - Total Bath & Body Works - Total - Stores (EOP): 1,923 compared to the 1,931 average estimate based on four analysts.Total Company-Operated Stores - Total Bath & Body Works - United States - Stores (EOP): 1,810 versus the three-analyst average estimate of 1,819.Total Company-Operated Stores - Total Bath & Body Works - Canada - Stores (EOP): 113 versus the three-analyst average estimate of 113.Total Partner-Operated Stores - Total International - International - Travel Retail - Stores (EOP): 37 compared to the 37 average estimate based on two analysts.Total Partner-Operated Stores - Total International - Total - Stores (EOP): 579 compared to the 586 average estimate based on two analysts.Total Partner-Operated Stores - Total International - International - Stores (EOP): 542 versus the two-analyst average estimate of 549.Geographic Net Sales- Stores - U.S. and Canada: $1.06 billion compared to the $1.07 billion average estimate based on three analysts. The reported number represents a change of -4.3% year over year.Geographic Net Sales- International: $70 million versus $68.08 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.4% change.Geographic Net Sales- Direct - U.S. and Canada: $246 million compared to the $228.33 million average estimate based on three analysts. The reported number represents a change of -1.6% year over year.View all Key Company Metrics for Bath & Body Works here>>>

Shares of Bath & Body Works have returned -7.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Bath & Body Works Inc (NYSE:BBWI) jumped 12.8% in Wednesday morning trading after the retailer posted first-quarter results above both its own guidance and Wall Street estimates, while reaffirming its full-year outlook, easing concerns about the trajectory of the business.

Adjusted EPS of $0.32 beat consensus of $0.29 and topped the guided range of $0.24 to $0.30. Net sales of $1.38 billion, down 3.2% year-over-year, came in ahead of the $1.36 billion consensus and the company's guided range of down 4% to 6%. Adjusted operating income of $151 million significantly topped estimates of $141 million.

The company reaffirmed full-year 2026 guidance for net sales down 4.5% to 2.5%, adjusted EPS of $2.40 to $2.65, and free cash flow of approximately $600 million.

For Q2, it guided net sales down 5% to 3% and adjusted EPS of $0.20 to $0.25, with the midpoint coming in ahead of the $0.21 consensus.

CEO Daniel Heaf said the results exceeded guidance but remained below the standard the brand is capable of delivering. "That reality reinforces the urgency with which we are executing the Consumer First Formula," he said. "Our efforts to strengthen our hero categories, modernize the brand, and expand our reach are beginning to resonate with consumers."

By segment, US and Canada store sales fell 4% year-over-year, international rose 9%, and e-commerce declined 2%.

Jefferies called the quarter a beat on both sales and earnings and said it would be listening on the call for updates on strategic initiatives, the $250 million cost savings plan, and early reads on the company's Amazon launch.

Bath & Body Works also said CFO Eva Boratto will step down on June 12 to pursue another opportunity. Tom Javitch, who has more than 16 years at the company, has been named interim CFO while a permanent search gets underway.

Shares of Bath & Body Works (BBWI +3.86%) rebounded on Wednesday after the purveyor of personal care and home fragrance products reported higher-than-expected profits.

Image source: Getty Images.

Strengthening the foundation Bath & Body Works' net sales declined 3% year over year to $1.4 billion in its fiscal first quarter, which ended on May 2.

The specialty retailer closed 17 underperforming company-operated stores in the U.S. during the quarter and opened 13 new locations. That brought its total company-operated store count to 1,923.

During the same time, Bath & Body Works opened eight partner-operated stores in international markets and closed two, bringing its total to 579.

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All told, Bath & Body Works generated $195 million in free cash flow, up from $151 million in the year-ago period.

"We are simplifying the business, removing unnecessary complexity, and reallocating resources toward the areas that most directly impact the consumer," CEO Daniel Heaf said during a conference call with analysts. "These efforts are helping fund investment in product innovation, brand relevance, and digital acceleration while maintaining a strong financial foundation."

Value territory Looking ahead, management reaffirmed its full-year free cash flow target of about $600 million in fiscal 2026.

"We believe that the foundation we are building will drive improved performance over time, with the impact expected to build through the balance of 2026 and more meaningfully into 2027, as we position the company to return to sustainable, durable growth," Heaf said.

Even after today's gains, if Bath & Body Works can return to growth, its current price to forecasted free cash flow of roughly 6.5 could prove to be a bargain.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Bath & Body Works Inc. NYSE: BBWI posted another quarter of declining sales in its Q1 2026 earnings report—and investors cheered anyway.

Bath & Body Works Today

BBWI

Bath & Body Works

$18.78 +0.66 (+3.64%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$14.27▼

$33.96Dividend Yield4.26%

P/E Ratio5.28

Price Target$21.93

The cheers came courtesy of a double beat and the fact that the company maintained its full-year guidance. BBWI surged over 16% in early trading after the report, closing the day up about 10%. That price action came on about twice the stock’s normal volume.

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Bath & Body Works earnings report was more of the same story that’s been viewed skeptically by investors.

That is, declining year-over-year revenue, particularly in same-store sales. But, as the post-earnings lift in BBWI seems to show, it's likely that the worst is already priced in.

Why Bath & Body Works Is Winning in the MarketplaceIf investors want to be cautious about Bath & Body Works earnings report, here’s the data point to consider. In the quarter, the company generated 77% of its revenue from in-store sales in the United States and Canada. That includes buy-online-pick-up-in-store (BOPIS). Specifically, that meant $1.1 billion. However, the number was down 4.3% year over year.

The news was only slightly better regarding online sales. The company reported $246 million in revenue from that channel. That was “only” down about 1.5% year-over-year.

It’s important to understand how BOPIS figures into these channels. BOPIS represents about 20% of total online sales. However, these are recorded as store net sales.

BOPIS is core to the company’s "Win in the Marketplace" pillar—making Bath & Body Works accessible "anytime and anywhere." The fact that approximately 20% of digital demand is fulfilled in-store also drives store traffic, reduces shipping costs, and can prompt incremental in-store purchases.

Support for that thesis came when management normalized for a free shipping threshold change. During the quarter, Bath & Body Works lowered its minimum from $100 to $50—digital and store channels performed comparably, suggesting the underlying omnichannel strategy is gaining traction.

The Amazon Effect Makes the Rally SustainableThe third bucket in which Bath & Body Works attributes revenue is labeled International and Other. The category only accounted for $70 million in revenue, but that was up 9% YOY. A big reason for that is the company’s new partnership with Amazon.com Inc. NASDAQ: AMZN that launched in February 2026.

Consumers can now order BBWI products on Amazon.com. Bath & Body Works records only the wholesale revenue (what Amazon pays them), not the full retail price the consumer pays. That's why CFO Boratto noted they "do not record full retail sales as revenue." This is the same accounting model the company would use selling into a retailer like Ulta Beauty NASDAQ: ULTA or Target NYSE: TGT—it's a distribution play, not a digital one, and it won't show up in the company's direct channel figures.

That said, the company is citing strong week-over-week sales from Amazon. How big could it get? Here’s where investors should be patient.

On the earnings call, management noted that expanded distribution (of which Amazon is one part) is expected to contribute about $50 million within its full-year 2026 revenue outlook. That’s a fraction of the forecasted $7.3 billion in full-year revenue. CEO Daniel Heaf described the Amazon launch as still in the early days but expects it to have a "meaningful financial impact" as the channel ramps, leaving room for upward estimate revisions if momentum builds.

Has BBWI Reversed Course?The post-earnings rally has pushed BBWI near its consensus price target of $21.21. But even if the stock were to reach the consensus price target, it would still be trading in the middle of its 52-week range, which could signal more upside.

What could be notable is that the rally arrested the drop in BBWI and took the 52-week low made in November 2025 off the table. In that case, investors may find it constructive to start building, or adding to, a position.

Investors See Value in BBWIIf investors now believe the worst is over for Bath & Body Works, it means they could start to focus on valuation. That’s where BBWI makes a strong case. The stock is trading for around 6x forward earnings. That’s a significant discount to the S&P 500, the broad retail and secondary retail averages, and the company’s own historical average.

Plus, Bath & Body Works pays an attractive, stable dividend with a yield of 4.1%. That’s well above the rate of inflation, even if it remains persistent or even inches higher.

Should You Invest $1,000 in Bath & Body Works Right Now?Before you consider Bath & Body Works, you'll want to hear this.

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Bath & Body Works, Inc. (BBWI) Q1 2027 Earnings Call Transcript

Kuehn Law Encourages Investors of Bath and Body Works, Inc. to Contact Law Firm PR Newswire NEW YORK, June 1, 20

© Christian Petersen / Getty Images News via Getty Images

Founded in 1986, Bright Horizons Family Solutions (NYSE:BFAM | BFAM Price Prediction) is a leading provider of early education and childcare, and just beat fourth-quarter earnings estimates, but the market’s reaction told a different story. The stock dropped roughly 19% in a single day after management revealed plans to close 45 to 50 centers in 2026, nearly double the original estimate of 25 to 30. Shares have since recovered slightly but remain down 24.6% year-to-date and 39.67% over the past year.

The Beat That Didn’t Matter Looking deeper into the numbers, the company announced its adjusted EPS came in at $1.15, above the $1.12 estimate, while revenue of $733.7 million beat expectations of $728.77 million. But GAAP net income collapsed 25% year-over-year to $21.74 million, weighed down by $45.1 million in impairment and lease termination costs tied to the full-service center segment. Adjusted EBITDA rose 12% to $123.45 million, but investors focused on what the closures signal about the underlying business.

Why So Many Centers Are Closing As for why so many centers are closing, CFO Elizabeth Boland described the closures as a mix of lease expirations, chronic underperformance, and unworkable economics. “The decision to close centers has been influenced by several factors, including some centers being within one to three years of the end of their lease, underperformance, falling enrollment, and the overall economics of operations that do not justify the fixed costs,” In some cases, conditions were severe enough to exit even with years remaining on a lease: “There are also situations where the underperformance is so significant that we chose to cease operations, even if the lease has several more years to run.”

The biggest concern focuses on centers operating below 40% occupancy, which declined from 16% to 12% of the portfolio between Q4 2024 and Q4 2025, and, after early 2026 closures, has since fallen to approximately 70 centers. Overall occupancy remains in the mid-60s, and management does not expect it to exceed that level by year-end 2026. The closures carry a roughly 200-basis-point headwind to full-service revenue growth in 2026.

Back-Up Care Carries the Weight While center-based care is being trimmed, back-up care continues to outperform. Full-year 2025 back-up care revenue exceeded $725 million, and the segment posted a 37% operating margin in Q3 2025. CEO Stephen Kramer framed the strategy around this strength: “We will continue to operate in locations that are important to our client partners, are strategic in delivering back-up care, and in areas with strong supply-demand dynamics.”

Legal Pressure and the Buyback Signal The closure announcement triggered securities fraud investigations from multiple law firms, including Bronstein, Gewirtz & Grossman and Pomerantz LLP, citing the near-doubling of closure estimates and the resulting stock decline.

A New York Times report from February 4, 2026 alleging issues at certain facilities added further scrutiny. Against that backdrop, Bright Horizons authorized a new $600 million share repurchase program on March 9, 2026, replacing a prior $500 million program. The analyst consensus target is $97.11, against a current price of $76.46, with a forward P/E of roughly 15x.

For 2026, management has indicated it expects guided revenue between $3.075 billion and $3.125 billion and adjusted EPS of $4.90 to $5.10. Whether the leaner portfolio delivers the promised margin improvement, or whether the closures reflect a structural retreat from center-based care, is the question investors will be watching over the rest of the year.

Data Sources

Bright Horizons Q4 2025 earnings data and segment results from Fuse API stock data and earnings endpoints Earnings call transcript quotes from CFO Elizabeth Boland and CEO Stephen Kramer via Alpha Vantage earnings call transcript data Securities fraud investigation details and buyback announcement from Alpha Vantage news sentiment data (February-March 2026) Stock price performance metrics from Fuse API price performance data as of March 16, 2026

Posted by Defense World Staff on Mar 29th, 2026

Bright Horizons Family Solutions Inc. (NYSE:BFAM – Get Free Report) has earned an average rating of “Hold” from the ten ratings firms that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and four have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $107.1111.

Several equities research analysts have commented on BFAM shares. BMO Capital Markets cut their price objective on Bright Horizons Family Solutions from $124.00 to $100.00 and set an “outperform” rating for the company in a research note on Tuesday, February 17th. The Goldman Sachs Group lowered their price target on Bright Horizons Family Solutions from $130.00 to $112.00 and set a “buy” rating on the stock in a research note on Friday, February 13th. Wall Street Zen cut Bright Horizons Family Solutions from a “buy” rating to a “hold” rating in a research report on Sunday, November 30th. Robert W. Baird set a $100.00 price objective on Bright Horizons Family Solutions in a research note on Friday, February 13th. Finally, Zacks Research lowered Bright Horizons Family Solutions from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 30th.

View Our Latest Analysis on BFAM

Hedge Funds Weigh In On Bright Horizons Family Solutions Several hedge funds and other institutional investors have recently modified their holdings of the business. Signaturefd LLC raised its holdings in Bright Horizons Family Solutions by 34.4% in the 4th quarter. Signaturefd LLC now owns 426 shares of the company’s stock valued at $43,000 after acquiring an additional 109 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings in shares of Bright Horizons Family Solutions by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 18,128 shares of the company’s stock worth $1,968,000 after purchasing an additional 110 shares during the last quarter. Cibc World Market Inc. boosted its holdings in shares of Bright Horizons Family Solutions by 2.2% during the 3rd quarter. Cibc World Market Inc. now owns 6,504 shares of the company’s stock worth $706,000 after purchasing an additional 137 shares during the last quarter. Xponance LLC grew its position in shares of Bright Horizons Family Solutions by 3.9% in the fourth quarter. Xponance LLC now owns 3,686 shares of the company’s stock valued at $374,000 after purchasing an additional 137 shares in the last quarter. Finally, Inspire Advisors LLC grew its position in shares of Bright Horizons Family Solutions by 2.3% in the third quarter. Inspire Advisors LLC now owns 6,582 shares of the company’s stock valued at $715,000 after purchasing an additional 147 shares in the last quarter.

Bright Horizons Family Solutions Stock Performance BFAM opened at $78.02 on Friday. The company has a quick ratio of 0.52, a current ratio of 0.52 and a debt-to-equity ratio of 0.56. The company has a market cap of $4.30 billion, a price-to-earnings ratio of 23.22, a PEG ratio of 1.49 and a beta of 1.42. Bright Horizons Family Solutions has a 52-week low of $63.68 and a 52-week high of $132.99. The firm’s fifty day simple moving average is $80.69 and its two-hundred day simple moving average is $94.73.

Bright Horizons Family Solutions (NYSE:BFAM – Get Free Report) last released its earnings results on Thursday, February 12th. The company reported $1.15 EPS for the quarter, topping analysts’ consensus estimates of $1.13 by $0.02. The business had revenue of $733.70 million during the quarter, compared to analysts’ expectations of $727.44 million. Bright Horizons Family Solutions had a net margin of 6.58% and a return on equity of 17.41%. The company’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.98 earnings per share. Bright Horizons Family Solutions has set its FY 2026 guidance at 4.900-5.100 EPS. Equities analysts anticipate that Bright Horizons Family Solutions will post 3.61 earnings per share for the current fiscal year.

About Bright Horizons Family Solutions (Get Free Report)

Bright Horizons Family Solutions, Inc (NYSE: BFAM) is a leading provider of employer-sponsored child care and early education services, offering a range of solutions designed to support working families and organizations. Through a network of on-site, near-site and center-based programs, the company partners with corporate and nonprofit clients to deliver infant, toddler, preschool and school-age care. Services emphasize age-appropriate curriculum, developmental milestones and community engagement to ensure high-quality learning experiences.

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Investors interested in stocks from the Business - Services sector have probably already heard of Bright Horizons Family Solutions (BFAM - Free Report) and APi (APG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Bright Horizons Family Solutions is sporting a Zacks Rank of #2 (Buy), while APi has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BFAM likely has seen a stronger improvement to its earnings outlook than APG has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BFAM currently has a forward P/E ratio of 16.51, while APG has a forward P/E of 27.12. We also note that BFAM has a PEG ratio of 1.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. APG currently has a PEG ratio of 2.71.

Another notable valuation metric for BFAM is its P/B ratio of 3.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, APG has a P/B of 5.55.

These are just a few of the metrics contributing to BFAM's Value grade of B and APG's Value grade of C.

BFAM has seen stronger estimate revision activity and sports more attractive valuation metrics than APG, so it seems like value investors will conclude that BFAM is the superior option right now.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

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

Our proprietary system currently recommends Bright Horizons Family Solutions (BFAM - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this child care and early education services provider a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Bright Horizons is 31.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11.6% this year, crushing the industry average, which calls for EPS growth of 10.1%.

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

Right now, year-over-year cash flow growth for Bright Horizons is 20.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.5%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.5% over the past 3-5 years versus the industry average of 9.5%.

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

There have been upward revisions in current-year earnings estimates for Bright Horizons. The Zacks Consensus Estimate for the current year has surged 1.2% over the past month.

Bottom LineBright Horizons has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

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

This combination positions Bright Horizons well for outperformance, so growth investors may want to bet on it.

NEWTON, Mass.--(BUSINESS WIRE)--As employers reset priorities for spring planning and performance reviews, data from EdAssist by Bright Horizons (NYSE:BFAM) shows that skills gaps, particularly around artificial intelligence, are emerging as one of the biggest constraints on productivity and workforce confidence. According to the 2025 EdAssist by Bright Horizons Education Index, conducted by The Harris Poll among more than 2,000 U.S. employees, AI is reshaping roles faster than workers feel pre.

On April 23, 2026, Bright Horizons Family Solutions Inc (BFAM) shares fell 3.9% today, closing at $81.70. The stock has fluctuated within a 52-week range of $63

Investors interested in Business - Services stocks are likely familiar with Bright Horizons Family Solutions (BFAM) and APi (APG). But which of these two stocks is more attractive to value investors?

For the quarter ended March 2026, Bright Horizons Family Solutions (BFAM - Free Report) reported revenue of $712.22 million, up 7% over the same period last year. EPS came in at $0.82, compared to $0.77 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $711.5 million, representing a surprise of +0.1%. The company delivered an EPS surprise of +3.37%, with the consensus EPS estimate being $0.79.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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

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

Number of Centers EOP (education and child care): 988 million versus the two-analyst average estimate of 992.5 million.Revenue- Full service center-based child care: $540.63 million versus the two-analyst average estimate of $539.22 million. The reported number represents a year-over-year change of +5.9%.Revenue- Educational advisory and other services: $26.92 million versus the two-analyst average estimate of $27.16 million. The reported number represents a year-over-year change of +2.1%.Revenue- Back-up care: $144.67 million compared to the $144.05 million average estimate based on two analysts. The reported number represents a change of +12.5% year over year.Adjusted income from operations- Full service center-based child care: $36.91 million compared to the $34.4 million average estimate based on two analysts.Adjusted income from operations- Educational advisory and other services: $2.47 million versus $1.63 million estimated by two analysts on average.Adjusted income from operations- Back-up care: $25.57 million compared to the $25.21 million average estimate based on two analysts.View all Key Company Metrics for Bright Horizons here>>>

Shares of Bright Horizons have returned -4.2% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Bright Horizons Family Solutions Inc. (BFAM) Q1 2026 Earnings Call Transcript

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P SmallCap 600 effective prior to the opening of trading on Thursday, May 14:

Bright Horizons Family Solutions Inc. (NYSE: BFAM) will replace Tri Pointe Homes Inc. (NYSE: TPH). Sumitomo Forestry Group (TSE: 1911) is acquiring Tri Pointe Homes in a deal expected to close soon, pending final closing conditions. Remitly Global Inc. (NASD: RELY) will replace Apellis Pharmaceuticals Inc. (NASD: APLS). S&P 500 constituent Biogen Inc. (NASD: BIIB) is acquiring Apellis Pharmaceuticals in a deal expected to close soon, pending final closing conditions. Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective Date

Index Name      

Action

Company Name

Ticker

GICS Sector

May 14, 2026

S&P SmallCap 600

Addition

Bright Horizons Family Solutions

BFAM

Consumer Discretionary

May 14, 2026

S&P SmallCap 600

Deletion

Tri Pointe Homes

TPH

Consumer Discretionary

May 14, 2026

S&P SmallCap 600

Addition

Remitly Global

RELY

Financials

May 14, 2026

S&P SmallCap 600

Deletion

Apellis Pharmaceuticals

APLS

Health Care

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NEW YORK & BURLINGTON, Mass.--(BUSINESS WIRE)--KKR and CIRCOR International (“CIRCOR” or the “Company”), a global manufacturer of flow control products for industrial, naval, and aerospace markets, today announced the signing of a definitive agreement to sell CIRCOR Aerospace, the Company's aerospace division, to Parker Hannifin Corporation (NYSE:PH), the global leader in motion and control technologies, for $2.55 billion. Funds managed by KKR first acquired CIRCOR for $1.8 billion in 2023 and.

Key Takeaways KKR's AUM grew from $252B in 2020 to $758B in Q1 2026, reflecting an 18% CAGR.KKR expanded into credit, infrastructure and insurance to diversify fee-generating growth.KKR targets $1T in AUM by 2030, supported by acquisitions and private wealth expansion. KKR & Co. Inc.’s (KKR - Free Report) $758 billion in assets under management (“AUM”) in the first quarter of 2026 highlights its transformation into a scaled, diversified global investment platform. Its AUM is spread across Credit & Liquid Strategies, Private Equity and Real Assets, showing that growth is no longer dependent on traditional private equity alone. This broad mix gives KKR multiple channels to raise capital, deploy funds and generate management fees across different market cycles. 

In its May 2026 Investor Presentation, KKR noted that AUM has grown rapidly. Its AUM witnessed a compound annual growth rate (“CAGR”) of 18% from 2010 to first-quarter 2026. Meanwhile, management fees rose at a CAGR of 26% from 2020 to first quarter 2026. These figures suggest that KKR’s scale is translating into recurring earnings power, not just larger asset totals. 

AUM Growth Trend

Image Source: KKR & Co.

KKR is diversifying across infrastructure, real estate, private credit, asset-based finance and insurance-linked investments to drive AUM growth toward its $1 trillion target by 2030. The acquisition of Arctos Partners expanded KKR’s reach across private markets, while its insurance platform, Global Atlantic and private wealth push further strengthen long-term growth prospects.

Private credit concerns may moderately slow KKR’s near-term AUM growth amid weaker investor sentiment and rising sector redemptions. However, KKR’s diversified AUM base, recurring fee streams, acquisitions and expanded distribution support its long-term growth strategy. AUM growth should remain key to the earnings trajectory, with projections to rise 23.5% over the next three to five years, above the industry’s 6.03% average.

AUM Performance of KKR’s PeersApollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first quarter of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.

The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo expects the total AUM to reach $1.5 trillion by scaling its private equity business.

Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), total AUM and fee-earning AUM have recorded a CAGR of 15.6% and 14.4%, respectively. 

Blackstone’s robust AUM base supports the long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.

KKR Price Performance & Zacks RankThe company’s shares have gained 2.8% in the past three months compared with the industry’s 2.4% rise. 
 

Price Performance

Image Source: Zacks Investment Research

Currently, KKR carries a Zacks Rank #4 (Sell). 

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

Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab

CompaniesROME, May 28 (Reuters) - KKR & Co (KKR.N), opens new tab said on Thursday it would open ​an office in Milan as ‌the U.S. private equity firm looks to expand its presence in Italy after significant ​investments in the telecoms ​and energy sectors.

Over the past two ⁠years, a KKR-led consortium ​bought Telecom Italia's (TLIT.MI), opens new tab fixed-line network for €19 ​billion ($22 billion), while KKR took a 30% stake in Eni's (ENI.MI), opens new tab biofuel unit Enilive ​for around €3.6 billion.

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

The new ​office will cover KKR's activities across private ‌equity, ⁠real assets, credit and insurance, as well as its private wealth business in Italy, the firm ​said in ​a ⁠statement.

It will be led by Marco Fontana, a ​partner in KKR's infrastructure ​team. ⁠Nicolo Della Casa, a director in the private equity team, will ⁠lead ​the firm's private ​equity activities in Italy.

($1 = 0.8616 euros)

Writing by ​Alvise Armellini, editing by Giulia Segreti

Our Standards: The Thomson Reuters Trust Principles., opens new tab

KKR & Co. Inc. (KKR) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

Shares in KKR, Blackstone and other sector peers tumbled on Wednesday after Switzerland's Partners Group moved to restrict investor withdrawals from one of its funds, stoking fresh fears over private market valuations.

Shares in Carlyle Group and KKR dropped more than 5% and 4%, respectively. Blackstone and Ares Management each slipped around 4%, while Blue Owl Capital shed more than 3%.

Shares in Partners Group — the Swiss asset management giant active in private equity, private credit, infrastructure and real estate markets — plunged more than 16%, reaching a 52-week low on Wednesday.

Partners Group.

The Zurich-listed firm has moved to curb investor redemptions in its Global Value ‌SICAV ⁠fund, an $8.6 billion so-called 'evergreen' private equity vehicle, at 5% of net asset value, after redemption requests hit 9.8%, according to a Bloomberg report.

The fund represents about 4.8% of Partners Group's total asset base.

David Layton, Partners Group CEO, told Bloomberg that the redemption pressure seen in private credit is now spreading into other asset classes.

The cap chimes with similar measures taken by several U.S. private equity outfits in recent months, where firms have halted or restricted investors from pulling out their money, amid a growing rush for the exits.

Retail investors have sought to redeem their money amid growing concerns over liquidity mismatches and deteriorating asset quality in private fund structures.