Key Takeaways Verizon's consumer strategy is driving user growth while reducing acquisition and retention costs.Verizon targets $9 billion in savings as adjusted EBITDA rose 7.2% to $13.7 billion in Q2.Verizon sees AI infrastructure potential, while high capex, debt and competition remain concerns. Verizon Communications Inc. (VZ - Free Report) has gained 23.3% year to date compared with the Wireless National industry’s growth of 118.2%. The stock has outperformed the Zacks Computer & Technology sector during this period.
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The company has outperformed its peers like AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Shares of AT&T have gained 4.4%, while T-Mobile has declined 7.8% during this period.
VZ Gains on Customer-Oriented Strategy, Cost Efficiency and AI FocusVerizon's new consumer strategy is driving user growth. The company introduced a broad loyalty program alongside its simplified Simplicity wireless plan. The strategy is designed to reduce customer friction, improve retention and attract new customer segments. The company has reported a 15% year-over-year decline in consumer promotional acquisition costs and a 17% reduction in promotional retention costs in the second quarter. Such an approach is expected to boost operating margin over time.
Verizon's transformation program is also improving profit. The company is targeting at least $9 billion in combined operating and capital expense savings. For that, VZ has taken several initiatives focused on lowering the cost to serve customers, improving productivity and streamlining customer interactions. The overall cost structure is already improving, backed by these initiatives. Second-quarter adjusted EBITDA increased 7.2% year over year to $13.7 billion, while the adjusted EBITDA margin reached 40.1%.
The company is increasing investment in improving its network to deliver reliable services. VZ is integrating AI to identify and resolve network issues. It recently acquired AWS-3 spectrum to enhance network capacity and customer experience.
Verizon's entry into the rapidly expanding AI infrastructure market will likely bring long-term benefits. The company is leveraging its extensive long-haul and metro fiber networks to serve hyperscalers, cloud providers and enterprises. VZ has already signed a dark-fiber agreement with Google worth more than $1 billion. The company expects to sign additional agreements in upcoming quarters.
Stiff Competition, Elevated Debt Burden are ConcernsVerizon operates in highly competitive wireless and broadband markets. Here, pricing, promotions, network quality and customer experience can significantly influence subscriber trends. The company faces competition from other major players, such as AT&T and T-Mobile.
Verizon's new Simplicity plans, Verizon One offering and expanded loyalty program are intended to improve customer retention without materially increasing promotional spending. However, aggressive responses from competitors could slow subscriber growth, pressure margins and reduce the benefits of Verizon's improving customer economics.
Verizon remains a capital-intensive business. The company expects 2026 capital expenditures of approximately $16-$16.5 billion, while continuing to invest in fiber, wireless infrastructure and spectrum. It also spent about $3.2 billion to acquire 82 AWS-3 spectrum licenses. High capex can impact free cash flow in the near term.
Its net unsecured debt-to-adjusted EBITDA ratio stood at 2.5 times at the end of the second quarter. At the end of second-quarter 2026, total unsecured debt stood at $136.5 billion, while net unsecured debt totaled $128.7 billion. Verizon is working to reduce leverage, but a substantial debt burden can limit financial flexibility.
Estimate Revision Trend of VZVZ’s earnings estimates for 2026 and 2027 have increased over the past 60 days.
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Key Valuation Metric of VZFrom a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry but trading above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 9.65, lower than 37.6 for the industry.
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End NoteVerizon's growth outlook is increasingly supported by a combination of improving wireless and broadband subscriber trends. Beyond its traditional telecom operations, the company's extensive fiber assets provide an opportunity to capitalize on the rapid buildout of AI infrastructure. Focus on cost optimization is a positive. However, despite an improving outlook, intense competition continues to impact margins. High debt burden remains a concern. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for McDonald's (MCD - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is McDonald's due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for McDonald's Corporation before we dive into how investors and analysts have reacted as of late.
McDonald's Q2 Earnings Beat on Franchised Margins, Sales MissMcDonald's reported second-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
McDonald's reported adjusted earnings per share (EPS) of $3.38, up 6% year over year, and beating the Zacks Consensus Estimate of $3.32 by 1.8%. Higher sales-driven franchised margins and other operating income supported the bottom line.
Revenues increased 4% year over year to $7.10 billion but missed the consensus mark of $7.14 billion by 0.5%. Global comparable sales rose with positive growth across all three operating segments.
MCD Posts Positive Comparable Sales Across SegmentsGlobal comparable sales increased 1.3% compared with 3.8% growth in the prior-year quarter. The United States recorded a 0.8% increase, driven by positive average check growth, including favorable product mix, partly offset by lower comparable guest counts.
International Operated Markets comparable sales rose 1.5%. Germany, Australia and the United Kingdom led the improvement, while France remained a drag. International Developmental Licensed Markets advanced 1.9%, supported by Japan and positive results across all geographic regions, partly offset by weakness in China.
McDonald’s Systemwide Sales Benefit From ScaleGlobal systemwide sales increased 5%, or 4% in constant currencies, to $37 billion. U.S. systemwide sales rose 2%, while International Operated Markets and International Developmental Licensed Markets increased 6% and 8%, respectively.
Loyalty remained an important demand driver. Across 70 loyalty markets, trailing 12-month systemwide sales to loyalty members increased more than 20% to $40 billion. The number of 90-day active loyalty users rose 13% to nearly 220 million at quarter-end.
MCD’s Q2 Revenue Growth Reflects Franchised StrengthRevenues from franchised restaurants increased 4% to $4.39 billion. U.S. franchised revenues rose 2%, International Operated Markets gained 5%, and International Developmental Licensed Markets and Corporate advanced 9%.
Sales from company-owned and operated restaurants increased 3% to $2.53 billion. U.S. sales declined 1%, while International Operated Markets rose 3%. Other revenues increased 6% to $182 million, reflecting contributions from technology-related fees and brand licensing arrangements.
McDonald’s Margins Rise Despite U.S. Cost PressureFranchised restaurant margins increased 4.3% to $3.71 billion and represented roughly 90% of total restaurant margin dollars. Growth reflected stronger sales across all segments and favorable currency translation in the international businesses.
Company-owned and operated restaurant margins rose 1.8% to $387 million. U.S. margins declined 6% to $91 million due primarily to ongoing inflationary cost pressures. International Operated Markets margins increased 3% to $285 million, as sales growth and currency benefits were partly offset by inflation.
MCD’s Operating Income Advances as SG&A ClimbsOperating income increased 3% to $3.34 billion, or 2% in constant currencies. Results included $52 million in pre-tax charges, primarily related to restructuring under the Accelerating the Organization initiative. Excluding current- and prior-year charges, operating income increased 4%.
Selling, general and administrative expenses increased 16.7% to $817 million. The rise primarily reflected higher employee costs, including incentive-based compensation, and expenses associated with the 2026 Worldwide Owner/Operator convention. Other operating income totaled $37 million compared with an expense of $29 million a year earlier, aided by higher gains on restaurant sales and excess properties.
MCD Maintains 2026 Expansion and Margin OutlookMcDonald’s expects net restaurant expansion to contribute about 2.5% to 2026 systemwide sales growth in constant currencies. The company continues to project a full-year operating margin in the mid-to-high 40% range and SG&A expenses of roughly 2.2% of systemwide sales.
Capital expenditures are expected between $3.7 billion and $3.9 billion. McDonald’s plans to open approximately 2,600 restaurants during 2026, generating about 2,100 net additions. Interest expense is projected to increase 4-6%, while the full-year effective tax rate is expected between 21% and 23%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, McDonald's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, McDonald's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMcDonald's is part of the Zacks Retail - Restaurants industry. Over the past month, Cheesecake Factory (CAKE - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
Cheesecake Factory reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.44 for the same period compares with $1.16 a year ago.
For the current quarter, Cheesecake Factory is expected to post earnings of $0.87 per share, indicating a change of +27.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cheesecake Factory. Also, the stock has a VGM Score of A.
Qualcomm plánuje v Japonsku otevřít Robotics Center pro rozvoj robotiky, fyzické AI a spolupráci s ekosystémem. Cílem je posílit expanzi mimo chytré telefony.
Key Takeaways Qualcomm plans a Japan Robotics Center to advance robotics, physical AI and ecosystem collaboration.QCOM's Snapdragon, automotive and AI expansion supports diversification beyond the smartphone market.Qualcomm faces margin pressure, falling estimates and revenue risks from Apple's in-house modem shift. Qualcomm Incorporated (QCOM - Free Report) is expanding its presence in Japan’s robotics and physical AI market through a new long-term investment initiative aimed at accelerating innovation, commercialization and global expansion.
As part of the initiative, the company plans to establish the Qualcomm Japan Robotics Center, which will support collaborative research, development and ecosystem engagement with startups, academic institutions and industry participants. The initiative is also expected to provide developers and robotics companies with access to Qualcomm’s products, technical expertise and enablement resources. In addition, the company plans to support flagship physical AI projects that demonstrate the potential of advanced robotics and intelligent automation.
The initiative should strengthen Qualcomm’s position in the fast-growing robotics, edge AI and industrial automation markets. Increased adoption of intelligent robotics could also drive demand for the company’s computing and AI platforms, supporting its diversification beyond the smartphone market over the long term.
Snapdragon, AI & Automotive: QCOM’s Key Growth DriversQualcomm envisions solid growth opportunities within the mobile space, driven by the strength of its Snapdragon portfolio. Leveraging processors with multi-core CPUs with cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms are fast with superb power efficiency, brilliant camera capabilities and state-of-the-art security solutions. Smartphones and mobile devices built with Snapdragon mobile platforms enable immersive augmented reality and virtual reality experiences, brilliant camera capabilities, superior 4G LTE and 5G connectivity, and state-of-the-art security solutions.
The company is also foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops. The strategy is aimed at moving beyond the slowing smartphone industry, which is its primary breadwinner. In addition to diversifying its revenue stream, this is likely to further extend QCOM’s AI footprint.
Qualcomm is gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, it has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as two-wheelers and roadside infrastructure. The company’s V2X chipsets offer production-ready standalone solutions that are purpose-built for global applications, resulting in direct communication becoming more pervasive.
Price PerformanceQCOM shares have gained 6.4% over the past year compared with the industry’s growth of 43.9%. It has underperformed peers like Hewlett Packard Enterprise Company (HPE - Free Report) and Broadcom Inc. (AVGO - Free Report) . While Broadcom is up 20%, Hewlett Packard has surged 123.8% over this period.
One-Year QCOM Stock Price Performance
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Waning Margins Hurt QCOMA combination of factors has led to the soft performance by the chip manufacturing firm. Qualcomm's margins have declined over the years due to high operating expenses and R&D (research & development) costs. The company expects softness in the handset market and a weaker overall mix of devices to continue in the near future. The shift in the share among original equipment manufacturers at the premium tier has reduced the near-term opportunity to sell integrated chipsets from the Snapdragon platform.
In addition, Qualcomm faces stiff competitive pressures from rivals Broadcom and Hewlett Packard. Aggressive competition from low-cost chip manufacturers and established players in the mobile phone chipset market is also likely to hurt Qualcomm's profits. Although the global smartphone market is expected to maintain its momentum over the next three to four years, a large share of this growth is likely to come from low-cost emerging markets, which may weigh on Qualcomm's margins.
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Apple’s In-House Modem Lowers Revenue ProjectionApple’s accelerating transition toward internally developed modems remains a major concern for Qualcomm. The company expects the faster-than-expected shift to in-house modems to lead to lower revenues from the fiscal fourth quarter. The resulting loss of premium handset chipset volumes is likely to weigh on QCT revenues and cash flows while increasing pressure on the company to offset the shortfall through Snapdragon gains at Android OEMs and continued expansion in automotive and IoT. Although Qualcomm’s licensing franchise provides some insulation, Apple’s vertical integration represents a meaningful long-term overhang on the company’s handset business.
Estimate Revision TrendEarnings estimates for Qualcomm for fiscal 2026 have moved down 11.1% to $10.54 over the past year, while the same for fiscal 2027 has declined 17.9% to $10.06. The downward estimate revision indicates that investors are bearish about the stock’s growth potential.
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End NoteQualcomm is likely to benefit from robust automotive and Snapdragon traction as it aims to build Japan’s open robotics ecosystem to accelerate edge AI innovations. A strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers.
However, with declining earnings estimates, the stock is witnessing negative investor sentiment. Moreover, stiff competition and softness in key end markets are likely to put pressure on the bottom-line growth. High R&D costs erode its profitability to a large extent. It also faces reduced chip orders and near-term uncertainty in memory supply.
With a Zacks Rank #3 (Hold), Qualcomm appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moderna získala schválení FDA pro mFlusiva, první sezónní mRNA vakcínu proti chřipce. GSK mezitím posouvá vlastního mRNA kandidáta do pozdní fáze vývoje.
Key Takeaways Moderna's mFlusiva is the first mRNA-based seasonal flu vaccine approved by the FDA.GSK's mRNA flu candidate targets HA and NA, generating higher immune responses in a phase II study.Moderna has time to establish mFlusiva before GSK's candidate potentially reaches the market. Moderna (MRNA - Free Report) recently secured FDA approval for mFlusiva, the first mRNA-based seasonal flu vaccine. The decision is a significant milestone for the company, which gets an opportunity to establish a foothold in another multibillion-dollar market while further diversifying its revenue base beyond COVID-19 vaccines.
However, even before Moderna has had much time to establish its newly approved vaccine in the market, a new competitive challenge has emerged. GSK plc (GSK - Free Report) recently announced plans to advance its investigational mRNA-based flu vaccine into late-stage development later this month, following positive phase II study results.
GSK’s Move Reinforces Confidence in Moderna’s mRNA PlatformModerna has recently undergone a significant shift in investor sentiment following the positive late-stage results for its personalized mRNA cancer therapy developed with partner Merck (MRK - Free Report) . The results have helped reinforce the potential of Moderna’s mRNA technology beyond infectious diseases, particularly oncology, providing another indication that the platform could support growth across multiple therapeutic areas.
GSK’s decision to advance an mRNA-based flu vaccine into phase III development could also be viewed as another sign that large pharmaceutical companies increasingly see mRNA as a viable next-generation technology. Rather than being viewed solely as a competitive development, GSK’s investment in the technology could further strengthen confidence in the broader mRNA platform and its potential across vaccine applications.
GSK’s Vaccine Could Also Raise the Competitive Bar for ModernaGSK’s candidate is important not simply because it uses mRNA, but because it is designed to target two proteins on the surface of the flu virus — hemagglutinin (HA) and neuraminidase (NA). HA helps the virus attach to and enter cells, while NA facilitates the spread of newly formed virus particles from infected cells. By targeting both proteins, GSK is pursuing a potentially broader approach to flu prevention.
That distinction matters for Moderna because, like most existing flu vaccines, mFlusiva is based on targeting HA. GSK’s advancement of the mRNA vaccine is supported by results from a phase II study, which showed that its flu vaccine generated higher immune responses than standard-dose vaccines in younger adults and high-dose vaccines in older adults.
This could potentially position GSK’s candidate as a differentiated competitor to Moderna once it reaches the market. However, GSK’s vaccine is still at least a couple of years away from reaching the market and is subject to phase III results, where its efficacy will be tested. This gives Moderna valuable time to establish mFlusiva in the market and build awareness before GSK potentially arrives.
Meanwhile, Moderna’s mFlusiva will compete for market share against established non-mRNA-based flu vaccines marketed by GSK, Sanofi (SNY - Free Report) and CSL Seqirus, all of which have a significant presence in the seasonal influenza market.
MRNA’s Price Performance, Valuation & EstimatesShares of Moderna have skyrocketed more than 400% year to date, significantly outperforming the industry’s 10% growth.
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From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 24.28 times forward 12-month sales, higher than the industry average of 1.94 times.
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Estimates for Moderna’s 2026 and 2027 loss per share have improved over the past 30 days.
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Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer soustředí svůj vývojový pipeline na obezitu a onkologii, aby obnovil růst po propadu tržeb z produktů proti COVID-19 a blížících se expiracích patentů. Berobenatide je ve fázi III a firma cílí na první možné schválení v roce 2028. K 4. srpnu 2026 měl Pfizer 95 programů v pipeline.
Key Takeaways Pfizer's 95-program pipeline is increasingly focusing on obesity and oncology to rebuild growth.Berobenatide is in phase III, with Pfizer targeting its first potential approvals in 2028.Oncology remains a key pipeline engine, with late-stage candidates spanning several cancer types. Pfizer’s (PFE - Free Report) R&D pipeline is becoming an increasingly important part of the investment story as the company is trying to revive growth after the sharp decline in COVID-19 product revenues and address several upcoming patent expirations. As of Aug. 4, 2026, Pfizer had 95 pipeline programs. The pipeline spans oncology, internal medicine, inflammation & immunology and vaccines. Though Pfizer's pipeline is broad, the most important assets are concentrated in obesity and oncology.
Let's break it down.
Berobenatide: Pfizer's Biggest New Growth OpportunityThe most important emerging asset in Pfizer's pipeline is arguably berobenatide, its monthly GLP-1 receptor agonist, added from last year’s Metsera acquisition. The candidate is being developed in phase III for chronic weight management.
Pfizer's earlier oral GLP-1 program, danuglipron, failed to establish the company as a major oral obesity player. Berobenatide represents a different approach. Berobenatide is a long-acting injectable peptide GLP-1, whereas danuglipron was an oral small-molecule GLP-1.
The currently available and highly popular weight loss GLP therapies, Eli Lilly’s (LLY - Free Report) Zepbound and Novo Nordisk’s (NVO - Free Report) Wegovy, are weekly injections. On the other hand, Pfizer’s berobenatide starts off as a weekly injection and then switches to a monthly injection. Berobenatide is designed for monthly maintenance dosing.
Pfizer plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028. Pfizer is also evaluating berobenatide in combination with an amylin-based therapy, PF'3945, in phase II studies.
Oncology Remains Pfizer's Strongest Pipeline EnginePfizer is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib (a selective CDK4 inhibitor for HR-positive/HER2-negative breast cancer), sigvotatug vedotin (an antibody-drug conjugate for first-line metastatic non-small cell lung cancer) and mevrometostat (an EZH2 inhibitor being developed in combination with enzalutamide for prostate cancer). A regulatory application seeking approval of sasanlimab for BCG-naïve, high-risk non-muscle invasive bladder cancer is also under review in the EU.
One of Pfizer's more strategically interesting oncology programs is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC, and additional phase II studies in small-cell lung cancer and gastroesophageal cancers. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types.
Dual PD-1/VEGF inhibitors have been designed to overcome the limitations of single-target cancer therapies like Merck’s (MRK - Free Report) blockbuster PD-L1 inhibitor, Keytruda.
Pfizer is also working on expanding the labels of approved cancer products like Padcev, Tuksya and Elrexfio, among others.
ConclusionThe 95-program pipeline provides plenty of shots on goal, but the key question for PFE investors is whether berobenatide plus the next generation of oncology drugs can generate enough new revenues to offset declining COVID sales, patent expirations and other portfolio pressures.
PFE’s Price Performance, Valuation and EstimatesPfizer stock has risen 16.6% so far this year compared with an increase of 14.6% for the industry.
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From a valuation standpoint, Pfizer appears attractive relative to the industry. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.84 forward earnings, significantly lower than 18.79 for the industry. However, the stock is trading above its five-year mean of 9.25.
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The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.96 to $2.98, while that for 2027 has risen from $2.85 to $2.94 over the past 30 days.
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Pfizer has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for Pfizer (PFE - Free Report) . Shares have added about 12.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pfizer due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Pfizer Inc. before we dive into how investors and analysts have reacted as of late.
Q2 Earnings & Sales Beat EstimatesPfizer reported second-quarter 2026 adjusted earnings per share of 77 cents, which beat the Zacks Consensus Estimate of 68 cents per share. Earnings were flat year over year.
Revenues came in at $15.03 billion, up 3% from the year-ago quarter on a reported basis and 1% on an operational basis. Total revenues beat the Zacks Consensus Estimate of $14.45 billion. Growth in Eliquis, Padcev, the Vyndaqel family and Lorbrena offset steep declines in COVID-19 products.
International revenues rose 3% on an operational basis to $6.18 billion. U.S. revenues were flat at $8.86 billion.
Excluding BioNTech-partnered Comirnaty and Paxlovid, revenues increased 5% operationally. Pfizer’s newly launched and acquired products delivered $3.2 billion in revenues and grew 18% operationally in the quarter. Excluding one-time items recorded in the second quarter of 2025, primarily related to the legacy Seagen in-line portfolio, this operational growth would have been 27%.
Adjusted selling, informational and administrative (SI&A) expenses declined 3% (operationally) in the quarter to $3.34 billion due to lower spending in corporate enabling functions. Adjusted R&D expenses rose 12% to $2.73 billion due to higher spending on oncology and obesity pipeline.
Segment DiscussionPfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. In first-quarter 2026, Pfizer created a new Hospital and Biosimilars Division within its Biopharma segment, moving certain off-patent brands, generic sterile injectables and biosimilars out of Specialty Care and Oncology.
Primary Care sales declined 2% on an operational basis to $5.5 billion. Oncology revenues rose 2% to $4.17 billion, while Specialty Care sales increased 7% to $3.35 billion. Hospital and Biosimilars revenues declined 2% to $1.64 billion.
Primary CareIn Primary Care, alliance revenues and direct sales from Eliquis increased 19% to $2.43 billion as higher demand trends globally were partially offset by price and generic erosion in some ex-U.S. markets. Eliquis sales beat the Zacks Consensus Estimate of $1.98 billion.
Global Prevnar family revenues declined 4% to $1.34 billion and missed the consensus estimate of $1.39 billion. U.S. sales fell 13%, more than offsetting a 10% increase in the international market. U.S. sales declined due to lower vaccination rates in the pediatric and adult indications. International sales rose due to continued increases in demand in both the adult and pediatric indications.
Direct sales and alliance revenues from partner BioNTech for Comirnaty were $261.0 million in the quarter, down 34% year over year, missing the consensus estimate of $278 million. The decrease reflected a smaller favorable adjustment to the returns provision and lower U.S. utilization following narrower vaccination recommendations.
Paxlovid revenues plunged 95% to $21 million due to lower COVID-19 infections and reduced government purchases in some international markets. Sales fell well short of the consensus estimate of $119 million.
Nurtec ODT/Vydura contributed $421.0 million in the quarter, up 17% year over year, driven by strong demand and prescription growth.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $208 million, up 43% on an operational basis, driven by launch uptake and favorable timing of deliveries in some international markets and favorable buying patterns in the United States.
OncologyIn Oncology, Ibrance revenues were flat at $1.06 billion, exceeding the Zacks Consensus Estimate of $1.05 billion.
Padcev sales climbed 23% to $667 million and surpassed the consensus estimate of $661 million. Padcev benefited from strong demand trends mainly due to market share gains in first-line metastatic urothelial cancer and launch momentum from the new muscle-invasive bladder cancer indication.
Xtandi alliance revenues declined 6% to $534 million. Lorbrena revenues rose 37% to $354 million, driven by market share gains in the first-line ALK-positive metastatic NSCLC treatment setting in the United States, China, and some other international countries. Adcetris sales fell 23% to $196 million. Inlyta revenues decreased 12% to $218 million. Braftovi/Mektovi revenues rose 23% to $223 million.
New drug, Elrexfio, generated sales of $89 million in the quarter, up 5% year over year.
Pfizer's Specialty Care and Hospital SalesVyndaqel family revenues increased 8% to $1.76 billion, slightly exceeding the Zacks Consensus Estimate of $1.75 billion. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues from Vyndamax in the United States and Vynmac in Japan. Growth reflected continued patient diagnosis and improved access in international markets, along with U.S. market expansion, which partially offset the impact of price erosion as a result of new payer contracts in the United States.
Xeljanz sales declined 23% to $251 million, while Enbrel revenues fell 10% to $142 million. Cibinqo sales rose 34% to $94 million.
Within Hospital and Biosimilars, oncology biosimilar sales increased 1% to $359 million, and Inflectra revenues rose 23% to $171 million.
2026 GuidancePfizer raised the lower end of its 2026 revenue guidance, backed by continued strong performance of its new and acquired products. The company now expects revenues between $60.5 billion and $62.5 billion, compared with the previous range of $59.5 billion to $62.5 billion. The range indicates a decline from 2025 revenues of $62.6 billion due to lower revenues from COVID products and loss of revenues from the upcoming patent cliff.
The revised outlook reflects approximately $1.5 billion of better-than-expected non-COVID product performance, partly offset by a $1 billion reduction in expected COVID-19 product revenues. Pfizer now expects around $4 billion from COVID-19 products in 2026, lower than the prior expectation of around $5 billion.
Paxlovid demand is expected to be limited due to low COVID infection levels. Meanwhile, most sales of Comirnaty are expected later in the year, in line with the seasonal vaccination period.
The adjusted earnings guidance was reaffirmed at $2.80-$3.00 per share. However, the guidance now absorbs a 10 cents per share charge related to its licensing deal with Chinese biotech Innovent Biologics that will be recorded in the third quarter of 2026.
Adjusted gross margin is expected to be in the mid-70s range, similar to the past several years. Adjusted R&D expenses are expected to be in the range of $10.5 billion to $11.5 billion in 2026, while adjusted SI&A spending is targeted between $12.5 billion and $13.5 billion. The adjusted effective tax rate is expected to be approximately 15% in 2026.
Pfizer also said it expects additional cost savings of $2.5 billion, which it expects to realize from 2027 through 2029.
Pfizer remains on track to achieve approximately $5.7 billion in net savings from its ongoing cost realignment program by the end of 2026 and has expanded the initiative with an additional $1 billion in expected SG&A savings through 2029, bringing total savings from the program to about $6.7 billion through 2029. Separately, the company has expanded its multi-year manufacturing optimization program, which is now expected to generate approximately $3 billion in cumulative cost-of-goods savings by 2029. Overall, Pfizer expects approximately $9.7 billion in total net savings from its productivity enhancement initiative through 2029.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.39% due to these changes.
VGM ScoresAt this time, Pfizer has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pfizer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPfizer is part of the Zacks Large Cap Pharmaceuticals industry. Over the past month, AbbVie (ABBV - Free Report) , a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended June 2026 more than a month ago.
AbbVie reported revenues of $16.99 billion in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $3.65 for the same period compares with $2.97 a year ago.
For the current quarter, AbbVie is expected to post earnings of $3.86 per share, indicating a change of +107.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
AbbVie has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Medicus Pharma získala od Pfizer exkluzivní globální licenci na vývoj, výrobu a komercializaci PF-08046031, přičemž Pfizer může získat milníkové platby přesahující 1 miliardu USD. Medicus zaplatila 12 milionů USD předem a dalších 15 milionů USD má uhradit k prvnímu výročí.
Medicus Pharma Ltd. (NASDAQ:MDCX) secured on Wednesday an exclusive, sublicensable global license from Pfizer Inc. (NYSE:PFE) to develop, manufacture, and commercialize PF-08046031 (CD228V), an early clinical-stage antibody-drug conjugate targeting melanotransferrin.
• Medicus Pharma stock is testing key support levels. What’s behind MDCX weakness?
Melanotransferrin is a protein that in humans, is encoded by the MF12 gene. The protein is a cell-surface glycoprotein found on melanoma (a type of skin cancer) cells.
The co-development agreement grants Medicus full rights to utilize CD228V for the treatment, prevention, diagnosis, control and maintenance of all human diseases and disorders.
Financial Commitments and Billion-Dollar MilestonesTo obtain the license, Medicus paid a $12 million non-refundable upfront fee to Pfizer and must pay another $15 million on the first anniversary.
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To support initial progress, Pfizer delivered a $2 million development funding payment to Medicus, which must be applied solely toward executing the CD228V development plan.
Pfizer stands to gain development, regulatory, and sales milestone payments exceeding $1 billion if all target benchmarks across multiple indications are achieved. The pharmaceutical company is also eligible for low double-digit tiered royalties on annual net sales of CD228V products throughout the royalty term.
Operational Roles and Licensing TermsAlthough Pfizer maintains patent ownership and participates in co-development oversight, Medicus retains sole authority and financial responsibility for manufacturing, regulatory approval, and commercialization efforts.
Pfizer holds the right to review budgets, receive progress reports, and elect to fund product development following the initiation of the first pivotal trial.
Additionally, Pfizer will receive a portion of specified proceeds in events involving sublicensing, strategic transactions, or a change of control at Medicus.
Unless terminated early, the contract remains effective on a product-by-product and country-by-country basis until the applicable royalty terms expire.
MDCX Stock Price Activity: Medicus Pharma shares were down 32.24% to 18 cents at the time of publication on Thursday, according to Benzinga Pro data.
UnitedHealth zlepšuje výsledky díky nižším zdravotním nákladům; upravený výhled EPS pro rok 2026 zvýšil na 19,50–20 USD. Optum ve 2. čtvrtletí zvýšil provozní zisk o 29 % na 4 mld. USD.
Key Takeaways UnitedHealth is recovering as lower medical costs help drive stronger margins and earnings.Optum's operating income rose 29% to $4 billion in the second quarter on better execution.UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20 despite ongoing risks. UnitedHealth Group, Inc. (UNH - Free Report) appears to be making meaningful progress toward recovering from the turbulence that weighed on its performance in 2025. After facing elevated medical costs, unfavorable utilization trends and pressure across government-sponsored businesses, the healthcare giant has entered 2026 with a stronger operating footing. In the first half of 2026, its total revenues rose 1.2% year over year along with 20.5% growth in adjusted earnings per share (EPS).
A key catalyst has been better control over medical expenses. UNH’s medical care ratio declined to 86.7% in the second quarter from 89.4% a year earlier, aided by improved pricing, benefit-design changes, member mix, medical-cost management and favorable prior-period reserve development. The improvement helped UnitedHealthcare’s operating margin expand to 4.6% from 2.4% in the prior-year quarter. Meanwhile, membership declined, particularly in Medicare Advantage, as UNH is currently prioritizing profitable growth over enrollment expansion, a strategy that could support healthier margins over time.
Optum is also contributing to the recovery. The segment benefited from improved operational execution, with operating income rising 29% year over year to $4 billion in the second quarter. Investments in technology, artificial intelligence and care-delivery capabilities are aimed at improving productivity and clinical efficiency, potentially creating additional opportunities for margin expansion.
The stronger results encouraged UnitedHealth to raise its 2026 adjusted EPS outlook to $19.50-$20. Still, elevated medical-cost trends, pressure in Medicaid and commercial benefits and membership declines remain risks. Therefore, sustained medical-cost discipline and continued improvement at Optum will be crucial for making the recovery durable.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana is focusing on pricing, network management and operating efficiencies to restore margins while navigating elevated medical costs and utilization across its Medicare Advantage business. In the first half of 2026, HUM’s adjusted revenues increased 24.9% year over year and adjusted EPS grew 0.3%.
Elevance is prioritizing medical cost management, operating efficiency and Carelon’s expansion while dealing with elevated medical costs and membership declines in government businesses. In the first half of 2026, operating revenues increased 1.2% year over year, while adjusted EPS declined 3.7%.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 28.7% in the past year compared with the industry’s growth of 24%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.46, above the industry average of 15.99. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merck ve 2. čtvrtletí zvýšil tržby o 5 % na 16,61 miliardy USD a upravená ztráta 13 centů na akcii byla menší, než čekal trh. Firma zároveň zvýšila výhled tržeb na rok 2026.
A month has gone by since the last earnings report for Merck (MRK - Free Report) . Shares have added about 18.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Merck due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Merck & Co., Inc. before we dive into how investors and analysts have reacted as of late.
Q2 Earnings & Sales Beat EstimatesMerck reported an adjusted loss of 13 cents per share for the second quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago quarter, the company reported adjusted earnings of $2.13 per share.
Including acquisition and divestiture-related costs, restructuring costs, income and losses from investments in equity securities and certain other items, loss was 54 cents per share in the second quarter versus earnings of $1.76 per share in the year-ago quarter.
Adjusted as well as reported earnings included a charge of $2.31 per share recorded in the quarter related to the acquisition of Terns Pharmaceuticals, which was completed during the period.
Revenues in the second quarter increased 5% year over year on a reported basis and 4% excluding foreign exchange (Fx) to $16.61 billion. Sales beat the Zacks Consensus Estimate of $16.33 billion. Higher sales of oncology drugs, including Keytruda and contributions from new products like Winrevair, Welireg and Capvaxive, and the Animal Health segment were partially offset by lower sales of Gardasil and some other vaccines.
Quarter in DetailThe Pharmaceutical segment generated revenues of $14.76 billion, up 5% year over year (4% excluding FX). Pharmaceutical segment revenues beat the Zacks Consensus Estimate of $14.28 billion.
All sales growth numbers discussed below exclude FX impact.
Oncology DrugsCombined sales of Keytruda and Keytruda Qlex increased 4% to $8.37 billion. The reported figure topped the Zacks Consensus Estimate of $8.06 billion.
Sales of Keytruda benefited from rapid uptake across earlier-stage indications and continued strong momentum in metastatic indications.
Keytruda sales in the second quarter included $463 million in sales of Keytruda Qlex, the subcutaneous formulation of Keytruda, compared to $128 million in the previous quarter as patient adoption has increased since the permanent J-code was established in April.
Merck is seeing an increase in usage of Keytruda in tumors that primarily affect women, including cervical and breast cancers, as well as Keytruda in combination with Padcev in first-line, locally advanced or metastatic urothelial cancer.
Merck said on the conference call that Keytruda’s U.S. growth will moderate as penetration peaks in several indications. The comparison will also be impacted by a $250 million wholesaler purchase benefit in the third quarter of 2025.
On the conference call, Merck’s CEO Robert Davis said that the Keytruda exclusivity transition will create a shallow decline followed by a fast return to growth.
Alliance revenues from Lynparza declined 2% to $365 million in the quarter. Lenvima alliance revenues increased 6% to $283 million, driven by higher U.S. demand, partly offset by lower net pricing.
Welireg sales surged 67% to $271 million, reflecting higher demand in the United States for certain previously treated advanced renal cell carcinoma patients and continued launch uptake across international markets, particularly Japan. Favorable wholesaler purchasing patterns in the United States also aided performance.
VaccinesIn vaccines, sales of HPV vaccines — Gardasil and Gardasil 9 — rose 3% to $1.17 billion. Higher demand in the Asia Pacific and Europe, along with favorable tender timing in Europe, supported the franchise. These gains were partly offset by lower demand and unfavorable timing of CDC purchases in the United States. Gardasil/Gardasil 9 sales missed the Zacks Consensus Estimate of $1.18 billion.
Combined sales of ProQuad, M-M-R II and Varivax declined 3% to $592 million, mainly due to lower demand in the United States.
Sales of the pneumococcal 15-valent conjugate vaccine Vaxneuvance declined 36% to $148 million due to lower demand in the United States and most international markets as well as unfavorable comparison to the prior year quarter, as public-sector activity in the United States increased sales in that period.
Capvaxive sales increased 40% to $184 million, driven by increased demand in the United States and continued launch uptake in some international markets.
Sales of the new RSV vaccine, Enflonsia, in the United States were $2 million in the second quarter of 2026 compared with $1 million in the first quarter.
Other DrugsIn the infectious disease portfolio, Bridion sales rose 8% to $497 million due to higher demand and pricing in the United States, partially offset by lower demand in most international markets due to generic competition. Bridion lost patent exclusivity in the United States in July 2026. However, Merck expects that U.S. sales will decline at a slower pace than previously expected due to lower-than-anticipated generic competition.
Prevymis sales increased 28% to $295 million, driven by higher demand in the United States and certain European markets.
Januvia/Janumet franchise sales fell 31% year over year to $429 million. Sales of the drug declined due to lower demand and net pricing in the United States due to competition, as well as lower demand in China and most other international markets amid ongoing generic competition.
Winrevair sales jumped 75% to $588 million, reflecting continued strong demand in the United States and early launch momentum across international markets, particularly Japan and Europe.
Ohtuvayre, added from the October 2025 acquisition of Verona Pharma, contributed $204 million in sales in the second quarter compared with $131 million in the previous quarter. Revenues in the second quarter benefitted from continued prescription demand as well as favorable timing of specialty pharmacy purchases. However, third-quarter revenues will be hurt by the unwinding of specialty pharmacy purchases. Merck is investing in salesforce expansion and patient support to drive accelerated growth in 2027.
Regarding its newly launched HIV pill, Idvynso, Merck said it is seeing encouraging early progress on access and reimbursement.
Merck’s Animal Health segment generated revenues of $1.78 billion, up 8% year over year on a reported basis and 5% excluding FX. This growth was driven by higher demand for livestock as well as companion animal products. Sales from this segment marginally beat the Zacks Consensus Estimate of $1.77 billion.
Sales of livestock products rose 6% to $1.04 billion, driven by higher demand for ruminant and poultry products. Sales of companion animal products rose 5% to $734 million, driven by new product launches.
Margin DiscussionAdjusted gross margin was 81.1%, down 110 basis points year over year due to higher inventory write-offs.
Adjusted selling, general and administrative expenses rose 10% to $2.89 billion, reflecting higher administrative and promotional spending.
Adjusted research and development expenses increased almost 144% to $9.74 billion in the quarter due to a significantly higher charge of $5.7 billion related to the Terns acquisition compared to a $200 million business development charge a year ago.
Excluding these business development charges, operating expenses grew 7% in the quarter.
2026 Sales Guidance Upped, EPS Range LoweredMerck raised its sales guidance for 2026 while lowering its adjusted EPS range to include acquisition costs.
The company now expects revenues to be in the range of $66.3-$67.3 billion, compared with the previous expectation of $65.8-$67.0 billion. The new range indicates year-over-year growth of 2% to 4%.
The company now expects adjusted earnings of $2.66-$2.76 per share, down from its previous guidance of $5.04-$5.16. The revised range includes a one-time charge of $2.43 per share related to the Terns acquisition.
The 2026 guidance represents a significant decline from adjusted EPS of $8.98 in 2025 due to higher charges related to business development transactions. In 2025, Merck recorded a one-time charge of 20 cents per share related to business development transactions.
The guidance includes a positive impact from Fx of approximately 1% on sales and around 15 cents on EPS.
The adjusted gross margin is expected to be around 81%, lower than the prior expectation of approximately 82% due to higher inventory reserves.
Adjusted operating expenses are now expected to be in the range of $42.0-$42.7 billion compared with the earlier projection of $36.0 billion to $36.8 billion. The adjusted tax rate guidance was raised to 35-36% compared with the previous guidance of 23.5-24.5%.
In 2026, Merck expects to buy back shares worth $3 billion.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresCurrently, Merck has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% 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.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Merck has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMerck is part of the Zacks Large Cap Pharmaceuticals industry. Over the past month, Novartis (NVS - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Novartis reported revenues of $14.41 billion in the last reported quarter, representing a year-over-year change of +2.5%. EPS of $2.41 for the same period compares with $2.42 a year ago.
For the current quarter, Novartis is expected to post earnings of $2.24 per share, indicating a change of -0.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Novartis. Also, the stock has a VGM Score of D.
Washington udělil 100letý pronájem 17 venezuelských ropných polí údajně s 65 miliardami barelů soukromé firmě North American Blue Energy Partners. Chevron mezitím dosáhl nového 52týdenního maxima v rámci samostatné dohody.
Washington just handed a 100-year lease on tens of billions of barrels of Venezuelan oil to a private company nobody has heard of, while Chevron quietly hit a 52-week high on a completely separate deal. The two stories are getting…
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Venezuela reportedly lays claim to over 300 billion barrels of proven oil reserves, and the U.S. has set its sights on more of them.
Bloomberg News correspondent Tyler Kendall reported from Caracas this week that the headline prize of Washington’s Venezuela deal, a 100-year lease on 17 strategic oil fields holding a claimed 65 billion barrels, went to a private, non-supermajor bidder: North American Blue Energy Partners, a private company that cannot develop the fields alone and has yet to sign on producing partners. Meanwhile, Chevron (NYSE:CVX | CVX Price Prediction) stock just printed a fresh 52-week high at $212.79 on a separate, parallel Venezuela commitment. The two developments deserve to be evaluated separately.
What Washington Actually Signed Kendall’s on-the-ground reporting laid out the mechanics. The US government is taking an equity stake in the private joint venture and securing the right to purchase 20% of the offtake at cost, below market, through a swap mechanism designed to help refill the Strategic Petroleum Reserve. US Energy Secretary Chris Wright told Bloomberg that Venezuelan production, already up 25%, with exports up 50%, could double by the end of this decade from the current 1.1 million barrels per day; that output is still far below the 3.5 million peak from nearly three decades ago.
The catch is that North American Blue Energy Partners cannot develop the 17 fields alone. It must bring in other producers, including some fields previously operated by Russian, Chinese, or smaller local companies. Constitutional questions surrounding Venezuela’s competitive-bidding requirements remain unresolved, although the State Department says the deal was fully vetted.
Chevron’s Separate Lane Chevron is executing a distinct, older track, separate from the 65-billion-barrel lease. On the Q2 2026 call, CEO Mike Wirth described Venezuela as one of Chevron’s “special situations,” revealing, “We’re in negotiations right now to try to improve the fiscal terms and enable more investment in Venezuela.”
Management also said the company operates three Venezuelan joint ventures and has bolstered production from those agreements from 40,000 to 250,000 barrels per day, with full debt recovery expected by early 2027. Chevron’s Q1 2026 growth-initiative slate specifically listed an agreement to expand its heavy oil interest in Petroindependencia and develop the adjacent Ayacucho 8 area, alongside its long-running Petropiar operations with PDVSA.
Wirth’s framing in the Q4 2025 8-K: “We have been a part of Venezuela’s past for more than a century. We remain committed to its present.” That century of ground presence is what separates Chevron’s exposure from the newer, splashier lease.
Economist Parallel Investors Should Weigh Not everyone is convinced. Bloomberg Economics’ Chris Kennedy compared the deal structure to the 1953 US-backed coup in Iran, warning it could rekindle nationalist and anti-American sentiment and affirming the view that “this was all about oil.” Iran’s oil was nationalized in 1979. Kennedy called a democratic transition in Venezuela “a matter of when, not if,” raising real questions about the durability of a 100-year lease under a future elected government. Wirth has emphasized contractual protections including dispute resolution and tax and royalty regime guarantees, though those provisions face a hostile-precedent problem.
What The Market Is Actually Pricing CVX is up 39.5% year to date and 35% over one year, backed by tangible Q2 2026 numbers: adjusted EPS of 6.06, revenue of $67.2 billion up 51.43% year over year, and free cash flow of $18.1 billion. The stock trades at a forward P/E of 15 with a 3.4% dividend yield backed by 39 consecutive annual increases.
Hess synergies, Permian scale, Guyana’s Stabroek block, and a 20-year Microsoft (NASDAQ:MSFT) power purchase agreement for 2.67 GW in West Texas are doing the heavy lifting. Venezuela is optionality on top of the core thesis. Investors pricing the 52-week high should separate the 65-billion-barrel headline from what Chevron actually holds itself.
Contact [email protected] for any questions or corrections.
A month has gone by since the last earnings report for Caterpillar (CAT - Free Report) . Shares have lost about 9.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Caterpillar due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Caterpillar Inc. before we dive into how investors and analysts have reacted as of late.
Caterpillar Q2 Earnings Beat Estimates on Higher Volume and PricingCaterpillar reported adjusted earnings of $8.17 per share for the second quarter of 2026, up 73% year over year. The figure surpassed the Zacks Consensus Estimate of $6.25 by 30.72%. Higher sales volume and favorable price realization supported the performance.
Including one-time items, Caterpillar’s earnings per share were $7.77 compared with $4.62 in the year-ago quarter.
Caterpillar's Q2 Revenues Powered by Volume, Reports Record BacklogSales and revenues increased 24% to $20.5 billion and topped the consensus estimate of $19.3 billion by 6.37%. The quarter marked Caterpillar’s first-ever revenue total above $20 billion. The increase primarily reflected $3.1 billion of higher sales volume and $595 million of favorable price realization. Currency movements added $199 million, while Financial Products revenues contributed another $67 million.
Higher sales of equipment to end users drove the volume increase. Sales rose across all three primary operating segments and every geographic region. Caterpillar’s order backlog surged 92% year over year to a record $72 billion.
Caterpillar's Margins Expand Sharply in Q2Cost of goods sold rose 18% to $12.781 billion. Gross profit was up 34.7% to $7.76 billion from the prior-year quarter. The gross margin expanded 300 basis points to 37.8% from the year-ago quarter.
Selling, general and administrative expenses increased 19% to $2 billion, while research and development expenses advanced 12% to $616 million. Operating profit increased 50% year over year to around $4.3 billion. The operating margin expanded to 20.9% from 17.3%, as the profit contribution from higher volume and pricing more than offset increased operating expenses.
Adjusted operating profit climbed 54% to around $4.5 billion, while the adjusted operating margin improved to 21.9% from 17.6%. The quarter included $392 million of expected International Emergency Economic Powers Act (IEEPA) tariff recoveries.
Segments Deliver Higher Sales and Improved ProfitsTotal Machinery, Power & Energy (MP&E) sales rose 24.9% year over year to around $19.6 billion. Operating profit was around $4.2 billion, up 51% year over year.
Construction Industries delivered the strongest segment sales growth. Revenues increased 35% to $8.3 billion, driven by $1.7 billion of higher volume and $309 million of favorable price realization. Segment profit advanced 57% to $1.9 billion, due to the higher sales volume. Margin widened to 23.3% from 20.1% in the prior-year quarter.
Resource Industries sales rose 20% to $4.6 billion, mainly reflecting higher equipment sales to end users. Segment profit increased 23% to $693 million. Margin edged up to 14.9% from 14.5%, as higher volume offset $158 million of unfavorable manufacturing costs.
Power & Energy sales increased 17% year over year to $8.2 billion. The improvement reflected $736 million of higher volume, $212 million of favorable pricing and a $200 million increase in intersegment sales. The segment reported sales growth in Power Generation (29%), followed by 9% growth in Industrial and Oil and Gas sectors. Segment profit rose 30% to $2 billion and segment margin expanded 250 basis points to 24.6%. Volume and pricing benefits outweighed $149 million of unfavorable manufacturing costs, mainly related to higher period manufacturing expenses.
Financial Products revenues advanced 10% to $1.1 billion on higher average earning assets. Segment profit increased 32% to $328 million, aided by earning-asset growth and improved Insurance Services results, partly offset by a higher provision for credit losses.
Caterpillar's Cash Flow and Outlook StrengthenMachinery, Power & Energy operating cash flow reached $5.7 billion, up 94% year over year. Free cash flow more than doubled to $5.1 billion. CAT returned $2.2 billion to shareholders through $1.5 billion of share repurchases and $700 million of dividends. Caterpillar ended the quarter with $6.7 billion in cash and equivalents.
Caterpillar's Expectations for Q3 & 2026Looking to third-quarter 2026, management expects strong growth in sales and revenues compared with the year-ago period. Tariff costs are expected to be in line with the year-ago quarter. CAT anticipates the adjusted operating margin to be higher year over year in the third quarter. For context, the adjusted operating margin was 17.5% in the third quarter of 2025.
For 2026, management expects sales and revenues to grow in the mid-to-high teens. Adjusted operating margin is projected near the bottom of its target range, excluding tariff recoveries. MP&E free cash flow is expected in the top half of the company’s target range. The company forecasts tariff costs of around $2.2 billion, excluding tariff recoveries.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 5.33% due to these changes.
VGM ScoresAt this time, Caterpillar has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Caterpillar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Společnosti Clorox ve 4. čtvrtletí fiskálního roku 2026 klesla hrubá marže o 520 bazických bodů na 41,3 % kvůli vyšší inflaci a nepříznivému mixu. Na fiskální rok 2027 čeká marži 42 %.
Key Takeaways Clorox's FY26 fourth-quarter gross margin fell 520 basis points y/y to 41.3%.Higher inflation and unfavorable mix more than offset Clorox's cost-saving benefits in the quarter.Clorox expects the FY27 gross margin of 42% as inflation and negative mix remain the key headwinds. The Clorox Company (CLX - Free Report) is leaning on productivity initiatives and cost savings to counter persistent inflationary pressure, but near-term margin protection remains challenging. In the fourth quarter of fiscal 2026, the gross margin contracted 520 basis points year over year to 41.3%. Management attributed the decline mainly to higher-than-normal inflation and unfavorable mix, which more than offset benefits from cost-saving initiatives. The comparison also included about 150 basis points of pressure from lower operating leverage related to the ERP transition and another 150 basis points from GOJO acquisition-related inventory step-up.
Clorox continues to strengthen its cost structure. In fiscal 2026, the company expanded its cost-saving programs and established infrastructure designed to improve operational efficiency and generate funds for reinvestment. With the ERP implementation now completed, management is shifting from stabilization to optimization, with a focus on capturing productivity benefits, removing costs and realizing the system’s full potential.
Still, inflation is likely to remain a significant headwind in fiscal 2027. Clorox expects volatility in energy and commodity markets, elevated logistics expenses, and supply-chain pressures to keep input-cost inflation sticky. The company projects fiscal 2027 gross margin of 42%, with stronger-than-normal inflation and negative mix expected to more than offset holistic margin-management benefits.
Thus, cost savings should provide an important cushion, but they may not fully offset inflation in the near term. Longer term, productivity gains, pricing actions and disciplined margin management could support a gradual margin recovery.
Zacks Rundown for CloroxCLX shares have risen 5.2% in the past three months compared with the industry and the Consumer Staples sector’s growth of 7.1% and 5.8%, respectively. The Zacks Rank #5 (Strong Sell) company has outpaced the S&P 500’s decline of 0.3% in the same period.
Clorox’s 3-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CLX is trading at a forward price-to-earnings ratio of 15.97X, lower than the industry’s 18.74X multiple.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Clorox’s fiscal 2027 and 2028 earnings implies year-over-year growth of 6% and 8.9%, respectively. Earnings estimates for fiscal 2027 and 2028 have moved down 2.8% and 1.7% in the past 30 days.
Image Source: Zacks Investment Research
Three Stocks Looking GoodThe Vita Coco Company Inc. (COCO - Free Report) is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the prior-year reported levels. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
National Vision Holdings, Inc. (EYE - Free Report) is a value-focused optical retailer in the United States. The company currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for National Vision’s current financial-year sales and earnings is expected to rise 3.8% and 22.5%, respectively, from the year-ago reported figures. EYE delivered a trailing four-quarter earnings surprise of 52.5%, on average.
Purple Innovation Inc. (PRPL - Free Report) designs and manufactures products which include mattresses, pillows and cushions, using its patented Hyper-Elastic Polymer. The company currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Purple Innovation’s current financial-year sales and earnings indicates growth of 0.4% and 20.8%, respectively, from the year-ago reported numbers. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.
MetLife ve 2. čtvrtletí 2026 zvýšila upravený zisk o 15 % na 1,6 miliardy USD a celkové pojistné o 5,8 %. Silná likvidita podporuje odkupy akcií i dividendy.
Key Takeaways MetLife's adjusted earnings rose 15% and total premium increased 5.8% in Q2 2026.MET is using AI, asset management and its New Frontier strategy to support scalable growth.MetLife's strong liquidity supports shareholder returns through share repurchases and dividend payouts. MetLife, Inc. (MET - Free Report) benefits from its diversified product portfolio, strong corporate relationships and global footprint, which support steady business volumes and premium growth. Its cost-cutting efforts, cash generation ability, strategic acquisitions and partnerships further support growth. Over the past year, shares of MET have grown 17.9%, outperforming the industry’s 4.6% rise.
MetLife — with a market capitalization of $62 billion — primarily provides protection and investment products to a range of individual and institutional customers. Beyond offering individual annuities, insurance and investment products, the company also delivers group insurance, as well as retirement and savings products and services. Its forward P/E of 9.30X is higher than the industry average of 9.17X.
Courtesy of solid prospects, MET currently carries a Zacks Rank #3 (Hold) and a Value Score of A.
MET’s Growth DriversMetLife continues to benefit from broad-based growth across its businesses, supported by stronger sales, favorable underwriting trends and improving operating momentum. Adjusted earnings rose 15% year over year to $1.6 billion in the second quarter of 2026, while total premium increased 5.8%.
Group Benefits remains an important contributor, supported by customer additions, broader product adoption and digital capabilities. MET continues to see strong opportunities in retirement and international markets. RIS-adjusted PFOs, excluding pension risk transfers, increased 19%, led by U.K. longevity reinsurance and structured settlement sales, while newer solutions such as U.K. FundedRe are broadening the platform. In Asia, sales climbed 17% on a constant-currency basis, helped by product launches and equity market tailwinds in Korea, while Latin America and EMEA sales rose 9% and 15%, respectively, creating additional room for expansion.
MET is also using technology and asset management to support scalable growth. AI-driven productivity gains are helping the company manage expenses while improving customer service and creating opportunities to apply data across policies, claims and service interactions. Meanwhile, MetLife Investment Management is expanding its role as the company grows its asset base and captures benefits from the integration of PineBridge.
MET’s New Frontier strategy combines capital-light and capital-driven businesses, leveraging its retirement origination, investment and risk-management capabilities to pursue growth while creating additional assets for its investment management platform. This model supports earnings diversification and more efficient capital deployment. The company also has flexibility to pursue additional growth through reinsurance, third-party capital and targeted acquisitions. Reinsurance can help MetLife originate more retirement business while creating additional assets for its investment management platform. The company is also evaluating selective opportunities in asset management and Group Benefits that can add complementary capabilities without requiring transformational deals.
MetLife’s robust liquidity position, evidenced by $19.3 billion in cash and cash equivalents as of June 30, 2026, far exceeds its short-term debt of $460 million. This financial strength supports shareholder returns through share repurchases and dividend payouts. The company bought back common shares worth $700 million in the second quarter of 2026. It pursued additional repurchases of roughly $225 million in July 2026. Its dividend yield of 2.5% remains higher than the industry’s average of 2.4%.
Where Do Estimates for MET Stand?The Zacks Consensus Estimate for MetLife’s 2026 earnings is pegged at $9.76 per share, indicating a 10.5% year-over-year rise, which has been revised upward over the past seven days. Furthermore, the consensus mark for revenues is pegged at $78.7 billion for 2026. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.7%.
MET Stock: Risks to WatchHowever, there are some factors that investors should keep a careful eye on.
MET’s variable investment income has been volatile in recent years and remained below target at $1.5 billion in 2025. The first quarter of 2026 produced $518 million of pre-tax variable investment income, but the second quarter fell to $231 million due to lower private equity returns, and real estate and other fund returns.
The company’s return on invested capital (ROIC) is 1.9%, below the industry average of 2%. This indicates relatively weaker capital efficiency and modest returns on its investments.
Better-Ranked PlayersSome better-ranked stocks in the insurance space are Hippo Holdings Inc. (HIPO - Free Report) , Slide Insurance Holdings, Inc. (SLDE - Free Report) and The Hanover Insurance Group, Inc. (THG - Free Report) , each sporting 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 Hippo Holdings’ current-year earnings is pinned at $2.46 per share and has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. HIPO beat earnings estimates in each of the trailing four quarters, with the average surprise being 521.8%. The consensus estimate for current-year revenues is pegged at $581.9 million, implying 24.2% year-over-year growth.
The Zacks Consensus Estimate for Slide Insurance Holdings’ current-year earnings is pinned at $3.79 per share and has witnessed two upward revisions in the past 60 days against one movement in the opposite direction. SLDE beat earnings estimates in each of the trailing four quarters, with the average surprise being 36.9%. The consensus estimate for current-year revenues is pegged at $1.5 billion, implying 29.5% year-over-year growth.
The Zacks Consensus Estimate for Hanover Insurance Group’s current-year earnings is pinned at $20.17 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for current-year revenues is pegged at $7 billion, implying 4.6% year-over-year growth.
Gilead ve 2. čtvrtletí zvýšil tržby o 10 % na 7,80 miliardy USD a zvedl celoroční výhled produktových tržeb i růstu v HIV. Akcie za měsíc přidaly asi 13,6 %.
A month has gone by since the last earnings report for Gilead Sciences (GILD - Free Report) . Shares have added about 13.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gilead due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Gilead Sciences, Inc. before we dive into how investors and analysts have reacted as of late.
GILD Q2 Earnings Beat on HIV and Trodelvy Growth, Product Sales Outlook Raised
Gilead Sciences reported a second-quarter 2026 adjusted loss of $6.75 per share, narrower than the Zacks Consensus Estimate of a loss of $7.07. In the year-ago quarter, GILD posted adjusted earnings of $2.01 per share.
The significant decline was due to acquired in-process research and development (IPR&D) expenses related to the acquisitions of Arcellx, Tubulis and Ouro Medicines.
Revenues increased 10% year over year to $7.80 billion, which beat the Zacks Consensus Estimate of $7.37 billion. Growth was driven by the HIV portfolio, along with Trodelvy and Livdelzi. Product sales, excluding Veklury, rose 10% to $7.60 billion.
GILD's HIV Franchise Drives Growth
HIV product sales increased 12% year over year to $5.69 billion, reflecting higher average realized prices and demand. The figure beat the Zacks Consensus Estimate of $5.4 billion and our model estimate of $5.35 billion.
Flagship HIV therapy Biktarvy sales rose 7% to $3.80 billion, driven by pricing, favorable inventory dynamics and higher demand. Sales surpassed the Zacks Consensus Estimate of $3.65 billion and our model estimate of $3.72 billion.
Biktarvy continues to lead as the regimen of choice for both naive and switch patients across major markets.
Descovy sales jumped 48% to $967 million, comfortably exceeding the Zacks Consensus Estimate of $750 million and our model estimate of $701 million. The increase reflected higher demand and realized prices, particularly in HIV prevention.
Incremental sales of newly approved Yeztugo (lenacapavir) for pre-exposure prophylaxis (PrEP) also boosted HIV product sales. Yeztugo generated sales of $232 million in the second quarter.
Driven by a $4 billion annualized PrEP business and the continued strong performance of Biktarvy, Gilead raised its full-year HIV sales growth guidance to 9-10% from the previous 8% forecast. GILD continues to expect Yeztugo sales of approximately $1 billion in 2026.
Gilead's Liver Disease Portfolio Sales Advance
Liver Disease portfolio sales increased 10% to $877 million. The figure topped the Zacks Consensus Estimate of $800 million and our model estimate of $787 million. Higher demand for Livdelzi, hepatitis B treatments and Hepcludex more than offset lower hepatitis C product sales.
GILD's Cell Therapy Sales Face Pressure
Cell Therapy sales declined 14% year over year to $417 million amid continued competitive headwinds. The figure matched the Zacks Consensus Estimate but came below our model estimate of $418.8 million.
Yescarta sales decreased 12% to $346 million due to competition. Tecartus sales fell 24% to $70 million because of in-class competition.
Gilead now expects full-year Cell Therapy sales to decline by a mid-teens percentage.
Trodelvy Boosts GILD’s Q2 Revenues
Trodelvy sales increased 26% year over year to $457 million, beating the Zacks Consensus Estimate of $448 million and our model estimate of $427 million. Growth reflected stronger demand across triple-negative and previously treated HR-positive/HER2-negative metastatic breast cancer.
The recent first-line metastatic triple-negative breast cancer approvals expand Trodelvy's addressable population. Management said adoption has broadened following regulatory approvals and treatment guideline updates.
Gilead's Costs Reflect Acquisition Charges
Adjusted product gross margin remained unchanged year over year at 86.9%. Adjusted research and development expenses declined 1% to $1.43 billion, as lower oncology clinical study activity offset costs associated with newly acquired businesses.
Adjusted selling, general and administrative expenses increased 12% to $1.52 billion, mainly due to higher HIV promotional spending. Acquired in-process research and development expenses totaled $11.2 billion, primarily related to the Arcellx, Tubulis and Ouro Medicines acquisitions.
As of June 30, 2026, Gilead's cash, cash equivalents and marketable debt securities totaled $3.2 billion, down from $10.6 billion as of Dec. 31, 2025. The decline was primarily due to $11.3 billion in acquisition-related cash outflows, $2.8 billion in debt repayments, $2.1 billion in dividend payments and $774 million in share repurchases.
These acquisition-related charges were the main reason for the adjusted quarterly loss. Excluding the acquisitions and nonrecurring other revenues, management indicated that adjusted earnings would have been $2.27 per share.
GILD Raises 2026 Base Business Outlook
Gilead now expects product sales of $30.10-$30.40 billion in 2026, up from the earlier expectation of $30.00-$30.40 billion. Product sales excluding Veklury are projected to be in the band of $29.80-$30.10 billion, up from the previous guidance of $29.40-$29.80 billion.
Veklury sales are now expected to be approximately $300 million, down from the earlier forecast of around $600 million, reflecting fewer COVID-19-related hospitalizations. Adjusted loss per share is projected to be between 30 cents and 65 cents compared with the previous loss guidance of 65 cents-$1.05.
The improved adjusted earnings outlook reflects stronger base-business sales.
Key Pipeline and Regulatory Updates From GILD
The FDA accepted Gilead's supplemental new drug application for Yeztugo (lenacapavir) 300 mg tablets as a potential once-weekly oral HIV PrEP regimen, with a target date of Feb. 2, 2027.
Gilead and partner Merck reported positive phase III results from the ISLEND-1 and ISLEND-2 studies, demonstrating the potential of the investigational once-weekly oral combination of islatravir and lenacapavir in virologically suppressed adults with HIV.
The FDA also granted accelerated approval to Hepcludex for the treatment of chronic hepatitis D virus (HDV) infection in adults without cirrhosis or with compensated cirrhosis, making it the first and only FDA-approved therapy for HDV in the United States.
Trodelvy received FDA approval for first-line metastatic triple-negative breast cancer (mTNBC), as a monotherapy for patients who are not candidates for PD-1/PD-L1 inhibitor-based therapy or in combination with Merck’s Keytruda (pembrolizumab) or Keytruda Qlex (pembrolizumab and berahyaluronidase alfa-pmph) for patients whose tumors express PD-L1 (CPS ≥10).
The European Commission approved Trodelvy monotherapy for first-line unresectable locally advanced or metastatic TNBC in patients ineligible for PD-1/PD-L1 therapy.
However, Gilead and partner Merck announced that the phase III EVOKE-03 study was discontinued. The study was evaluating Trodelvy plus Keytruda in first-line PD-L1-high metastatic non-small cell lung cancer after an independent review found the study was unlikely to meet its efficacy goals.
How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.
VGM ScoresCurrently, Gilead has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Gilead has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerGilead belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Bristol Myers reported revenues of $12.97 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $2.04 for the same period compares with $1.46 a year ago.
Bristol Myers is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +3.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.
W.W. Grainger ve 2. čtvrtletí překonal odhady zisku i tržeb a zvýšil celoroční výhled. Zisk na akcii (EPS) stoupl na 12,01 USD a tržby na 5,02 miliardy USD.
A month has gone by since the last earnings report for W.W. Grainger (GWW - Free Report) . Shares have lost about 0% in that time frame, outperforming the S&P 500.
Will the recent trend continue leading up to its next earnings release, or is W.W. Grainger due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for W.W. Grainger, Inc. before we dive into how investors and analysts have reacted as of late.
Grainger Beats Q2 Earnings Estimates on Margin Gains, Raises OutlookGrainger reported second-quarter 2026 earnings of $12.01 per share, up 20.5% year over year. The figure beat the Zacks Consensus Estimate of $11.28 by 6.47%, aided by strong sales growth, and wider gross and operating margins.
Quarterly sales increased 10.3% year over year to $5.02 billion and surpassed the consensus estimate of $4.95 billion by 1.35%. Daily sales advanced 10.3%, reflecting solid momentum across both operating segments. We predicted daily sales to increase 8.5%.
On a daily, organic constant currency basis, sales increased 13.7%. The comparison adjusts for foreign currency movements and the company’s exit from the U.K. market, including the divested Cromwell business and closed Zoro U.K. operations.
Grainger’s Q2 Segmental PerformanceThe High-Touch Solutions N.A. segment’s daily sales rose 11.9% year over year in the second quarter of 2026, reflecting strong volume growth and a healthy contribution from pricing. The Endless Assortment segment’s daily sales grew 13.5% year over year in the quarter, supported by strong performances at MonotaRO and Zoro.
GWW Expands Profitability in Q2Gross profit increased 13% year over year to $1.98 billion. The gross margin expanded 100 basis points to 39.5%, supported by improvement in both segments and benefits related to the U.K. market exit.
The quarter included $43 million in refunds on IEEPA tariffs for products directly imported by Grainger. These refunds reduced the cost of goods sold and provided a roughly 90-basis-point benefit to the gross margin. The cost of sales came in at $3.04 billion, 8.5% year over year.
Selling, general and administrative expenses rose 9.3% to $1.18 billion. Grainger’s operating earnings in the quarter increased 19% year over year to $807 million. The operating margin came in at 16.1% compared with 14.9% in the prior-year quarter.
Grainger Generates Solid Cash FlowThe company had cash and cash equivalents of $589 million as of June 30, 2026, compared with $585 million at the end of 2025. The cash flow from operating activities was $1.18 billion in the first six months of 2026 compared with $1.02 billion in the prior-year period.
Long-term debt was $2.41 billion as of June 30, 2026, compared with $2.36 billion as of Dec. 31, 2025. Grainger returned $341 million to shareholders through dividends and share repurchases during the quarter.
GWW Raises Its 2026 OutlookGrainger raised its 2026 net sales guidance to $19.4-$19.7 billion from $19.2-$19.6 billion. The company expects reported sales growth of 8.4-10% from the prior mentioned 6.7-9.1%.
The adjusted earnings guidance was increased to $45.50-$47.25 per share from $44.25-$46.25. Grainger also raised its operating margin outlook to 15.8-16.2% and the gross margin forecast to 39.3-39.6%. The updated outlook reflects strong first-half execution, improving MRO market demand and better top-line leverage.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
VGM ScoresAt this time, W.W. Grainger has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
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.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W.W. Grainger has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
, /PRNewswire/ -- Duke Energy Florida customers can expect lower rates beginning in January 2027, compared to December 2026, following a request the company filed today with the Florida Public Service Commission (FPSC).
What this means:
Duke Energy Florida's typical residential customers using 1,000 kilowatt-hours of energy per month should see a $0.71 decrease on their bills from December 2026 to January 2027. The company's commercial and industrial customers' bill reductions will range between 0.8% and 3.6% from December 2026 to January 2027, though the impact will vary depending on several factors. Our view:
"What matters to our customers matters to us, and right now, we know they're carefully watching every dollar," said Melissa Seixas, Duke Energy Florida state president. "While we're glad to start 2027 with a rate decrease, we'll remain focused on making smart, disciplined investments that allow us to keep our costs in check and continue delivering increasingly reliable service all year long."
How we got here:
Customer rates consist of several components that Duke Energy Florida adjusts annually to set the total bill for the year ahead, pending approval from the FPSC. Among other charges, it includes the price of fuel used to generate power, continued expansion of cost-effective renewable energy and ongoing infrastructure improvements that help reduce outages and allow for faster restoration after storms. Some costs, like fuel, are decreasing, while others, such as investments to strengthen the grid, are increasing slightly in 2027. However, a 2% increase in the base rate – another component of the total rate, set by the FPSC in 2024 – is being avoided altogether because of an innovative tax strategy recently implemented by the company to accelerate the delivery of $50 million in customer savings next year. Duke Energy Florida is always looking for creative ways to keep costs as low as possible for customers, such as developing more solar energy sites – which do not rely on fuel – and completing efficiency upgrades at its natural gas plants to enable them to produce more power with the same amount of fuel. Help is available:
Customers are encouraged to take advantage of the many energy efficiency and financial assistance programs offered by Duke Energy Florida, from free assessments of their home's energy use to flexible payment plans. For more information, please visit duke-energy.com/SummerSolutions or duke-energy.com/HereToHelp.
Duke Energy Florida
Duke Energy Florida, a subsidiary of Duke Energy, owns 12,500 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.
Duke Energy is executing an energy modernization strategy, keeping customer value at the forefront as it invests in electric grid upgrades and efficient generation resources to strengthen the system and serve growing energy needs.
More information is available at duke-energy.com. Follow Duke Energy on X, LinkedIn, Instagram, TikTok and Facebook for stories about the people and innovations powering its communities.
Contact: Aly Raschid
24-Hour: 800.559.3853
X: @DE_AlyRaschid
A month has gone by since the last earnings report for Duke Energy (DUK - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Duke Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Duke Energy Q2 Earnings Beat Estimates, Revenues Increase Y/Y
Duke Energy Corporation's second-quarter 2026 earnings of $1.43 per share surpassed the Zacks Consensus Estimate of $1.29 by 10.9%. The bottom line increased 14.4% from $1.25 reported in the year-ago quarter.
DUK’s RevenuesTotal operating revenues were $7.59 billion, which missed the Zacks Consensus Estimate of $7.72 billion by 1.6%. The top line increased 1% from $7.51 billion in the year-ago period.
Highlights of DUK’s Q2 ResultsOperating expenses amounted to $5.55 billion, down 2.4% year over year. The decrease was primarily due to lower cost of natural gas, operation, maintenance and other and lower property and other taxes.
The operating income totaled $2.05 billion compared with $1.83 billion in the year-ago quarter.
Interest expenses rose to $957 million from $897 million in the second quarter of 2025.
The average number of customers in its Electric Utilities and Infrastructure increased 1.4% year over year.
Total electric sales volume for the reported quarter went up 0.4% year over year to 64,442 gigawatt-hours.
DUK’s Segmental HighlightsElectric Utilities & Infrastructure: This segment’s adjusted earnings totaled $1.3 billion, up from $1.2 billion in the second quarter of 2025. This was primarily driven by the recovery of investments in infrastructure needed to reliably serve customers across its growing jurisdictions, partially offset by higher depreciation associated with an expanding asset base and increased interest expense.
Gas Utilities & Infrastructure: Adjusted earnings from this segment amounted to $10 million compared with $6 million in the second quarter of 2025. This was primarily driven by recovery of infrastructure investments to reliably serve customers in its growing jurisdictions, offset by lower earnings from the sale of Piedmont's Tennessee business.
Other: The segment includes corporate interest expenses not allocated to other business units, resulting from Duke Energy’s captive insurance company and other investments. On an adjusted basis, this segment incurred a loss of $204 million compared with a loss of $228 million in the second quarter of 2025. Higher quarterly results were primarily driven by higher returns on investments and lower interest expense.
Financial Condition of DUKAs of June 30, 2026, Duke Energy had cash & cash equivalents of $673 million compared with $245 million as of Dec. 31, 2025.
As of June 30, 2026, the long-term debt was $82.24 billion compared with $80.11 billion as of Dec. 31, 2025.
During the first six months of 2026, the company generated net cash from operating activities of $4.27 billion compared with $5.04 billion a year ago.
2026 Guidance by DUKDuke Energy expects to generate 2026 adjusted EPS in the range of $6.55-$6.80. The Zacks Consensus Estimate for 2026 earnings is pegged at $6.72, which is higher than the midpoint of the company’s projected range.
The company expects long-term adjusted EPS growth of 5-7% through 2030.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, Duke Energy has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Duke Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Campbell’s snížila čtvrtletní dividendu o 36 % na 0,25 USD na akcii a výhled na příští fiskální rok počítá s poklesem čistých tržeb o 2 až 4 % a upraveným ziskem na akcii v rozmezí 1,65 až 1,80 USD, což je pod odhady Wall Street. Akcie klesly o 9 % během poledního obchodování a stáhly dolů i General Mills a Kraft Heinz.
Campbell's just slashed its dividend and reset guidance well below Wall Street's bar, and the fallout is spreading fast to peers that haven't reported a single number yet.
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Packaged-food names are selling sharply Thursday even as the broader staples complex holds firm and the wider tape climbs. The Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) is flat at $85.57, while the S&P 500 tracking SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 1% to $772.73. The selling is inside center-store food, evidently.
The Campbell’s Company (NYSE:CPB | CPB Price Prediction) stock is down 9% to $21.53 at midday after the company cut its dividend and guided the coming fiscal year below Wall Street’s bar. Meanwhile, General Mills (NYSE:GIS) stock is falling 4% to $38.88 in sympathy with that guidance reset. Kraft Heinz (NASDAQ:KHC) stock is sliding 3% to $25.43 as the read-across extends to peers with similar U.S. center-store exposure.
Dividend Reset and Guide-Down Campbell’s board approved a quarterly dividend of $0.25 per share, down 36% from $0.39, payable November 2 to shareholders of record as of October 1, which takes the annualized payout to $1.00 per share from $1.56. Management framed the reset as a way to accelerate debt reduction, and CEO Mick Beekhuizen didn’t soften the message. “Our performance is not where it needs to be, and we are taking decisive action to improve it,” he stated.
For the coming fiscal year, Campbell’s guided net sales to decline 2% to 4% and adjusted earnings per share to a range of $1.65 to $1.80. That sits below analyst consensus, which had called for a Campbell’s net sales decline of 0.8% and adjusted EPS of $1.86. In other words, the outlook is a contributing factor to the CPB share-price decline.
Snacks Weakness Against Meals Strength For the fiscal fourth quarter ended August 2, Campbell’s net sales fell 8% to $2.14 billion, reflecting a seven-point impact from an extra week in the year-earlier period, with organic net sales down 1% and adjusted EPS of $0.39. The mix is what matters here. Campbell’s snacks segment organic net sales fell 6% on weakness in the salty portfolio, while meals and beverages posted 3% organic net sales growth.
Salty snacks are where the damage concentrates. That’s where Campbell’s new $500 million cost program, targeting savings by fiscal 2030 and replacing a prior $375 million initiative, is aimed, with plant closures and workforce reductions already underway. GAAP results also carried trademark impairments on the Cape Cod and Kettle Brand lines, underscoring how much rework the salty portfolio still requires.
Peer Read-Across and Session Scorecard General Mills and Kraft Heinz aren’t reporting today. However, the concerns extend to any large U.S. center-store player after Campbell’s just flagged inflation, salty-snack weakness, and a multi-year cost reset. Both peers enter this session carrying their own volume-mix pressure in North America.
Campbell’s entered the day down 10% year to date through the prior close and had climbed 6% over the past month, a rebound today’s move erases. Kraft Heinz was up 12% year to date, while General Mills was down 9%. Those three starting points mean today’s shared decline shows the market pricing read-across from one company’s guidance.
Stock Session Move YTD Through Prior Close CPB Down 9% to $21.53 Down 10% GIS Down 4% to $38.88 Down 9% KHC Down 3% to $25.43 Up 12% What to Watch A flat staples fund and a rising broad tape tell you this is a category story inside packaged food. Traders can watch for whether the group stabilizes as the Campbell’s call fades, or whether the guidance reset pulls sell-side estimates lower on General Mills and Kraft Heinz over coming sessions.
Holders of these names may want to right-size their exposure ahead of the next round of analyst notes. A single company’s guide-down can compress peer multiples for weeks, and the sector’s yields no longer offer the same cushion after Campbell’s just showed a payout can move (we cataloged the seven warning signs a big yield is about to be cut in a free report). Their position sizing should reflect that risk.
Contact [email protected] for any questions or corrections.
DaVita za poslední měsíc oslabila o 4,9 %, i když ve 2. čtvrtletí překonala odhady zisku i tržeb. Společnost zároveň potvrdila celoroční výhled zisku na 14,10–15,20 USD na akcii.
It has been about a month since the last earnings report for DaVita HealthCare (DVA - Free Report) . Shares have lost about 4.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DaVita HealthCare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
DaVita Q2 Earnings Beat Estimates, Margins DownDaVita Inc. (DVA - Free Report) delivered adjusted earnings per share from continuing operations of $4.02 in the second quarter of 2026, up 36.3% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%.
GAAP earnings per share from continuing operations for the quarter was also $4.02, reflecting an uptick of 55.8% year over year.
DaVita’s Revenues in DetailRevenues of $3.55 billion in the second quarter increased 5.2% year over year. The figure topped the Zacks Consensus Estimate by 0.6%.
RPT in the second quarter of 2026 was $415.9, up 2.8% year over year, but down 0.4% sequentially. Per management, the sequential decline reflected a lower commercial mix from declining Affordable Care Act enrollment and lower sequential revenue contribution from phosphate binders.
DVA’s Segment DetailsDaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $3.37 billion, up 4.9% year over year.
Other revenues were $187.7 million, up 8.7% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the second quarter were 7,226,600 or 92,649 per day, on average. This represents a per-day increase of 1.09% on a sequential basis. Normalized non-acquired treatment increased 0.3% year over year in the second quarter of 2026.
As of June 30, 2026, DaVita provided dialysis services to around 298,500 patients at 3,266 outpatient dialysis centers, of which 2,671 were U.S. centers while 595 were located across 14 other countries.
As of June 30, 2026, DVA had approximately 64,900 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.8 billion in annualized medical spend. The company also had an additional 5,700 patients in other integrated care arrangements.
DaVita’s Margin DetailsIn the quarter under review, DaVita’s gross profit increased 3.9% year over year to $1.16 billion. However, the gross margin contracted 38 basis points (bps) to 32.7%.
General & administrative expenses climbed 2.6% year over year to $423.5 million.
Adjusted operating profit totaled $738.6 million, reflecting a 4.7% increase from the prior-year quarter’s level. Adjusted operating margin in the second quarter contracted 8 bps to 20.8%.
DVA’s Financial PositionDaVita exited second-quarter 2026 with cash and cash equivalents and short-term investments of $688.9 million compared with $666.5 million at the end of the first quarter of 2026. Total debt (including the current portion) at the end of second-quarter 2026 was $10.78 billion compared with $10.63 billion at the end of the first quarter of 2026.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $810.9 million compared with $504.2 million a year ago.
During the three months ended June 30, 2026, DVA repurchased 2.2 million shares for $348 million. Subsequent to June 30, through Aug. 4, 2026, the company has repurchased 0.2 million shares of its common stock for $37 million.
DaVita’s GuidanceDaVita has revised its outlook for 2026.
For 2026, DVA continues to expect RPT to reflect growth of 1%-2%, while treatment volume is expected to be near the top end of the company’s previous guidance range of 25 to 50 bps.
Adjusted earnings per share from continuing operations for the full year remains expected in the range of $14.10-$15.20. The Zacks Consensus Estimate is currently pegged at $15.07.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.69% due to these changes.
VGM ScoresCurrently, DaVita HealthCare has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, DaVita HealthCare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerDaVita HealthCare is part of the Zacks Medical - Outpatient and Home Healthcare industry. Over the past month, Quest Diagnostics (DGX - Free Report) , a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
Quest Diagnostics reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $3.12 for the same period compares with $2.62 a year ago.
Quest Diagnostics is expected to post earnings of $2.85 per share for the current quarter, representing a year-over-year change of +9.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
Quest Diagnostics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Palantir ve 2. čtvrtletí zvýšil tržby o 92,83 % na 1,94 miliardy USD a zvýšil celoroční výhled na 8,150 až 8,158 miliardy USD. Akcie jsou ale stále 8 % pod historickým maximem.
Palantir just posted the kind of revenue growth that makes software investors stop mid-scroll, yet the stock sits 8% below its all-time high with insiders selling and a valuation that has skeptics reaching for antacids. Whether that tension resolves as…
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Palantir (NASDAQ:PLTR | PLTR Price Prediction) is closing in on a market cap of roughly $387 billion, and the trillion-dollar question is whether hyper-growth in U.S. commercial AI can justify the multiple. After a Q2 that CEO Alex Karp called “otherworldly”, our proprietary model still sees room to run.
The 24/7 Wall St. price target for Palantir is $219.66 over the next 12 months, an upside of 30.8% from the current $168.02. Our model signals meaningful upside with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $168.02 24/7 Wall St. Price Target $219.66 Upside 30.8% Directional Bias Constructive Confidence Level 90% A Melt-Up Month Meets a Volatile Session PLTR has been on a tear. Shares are up 46.21% over the past month and 4.16% over the past week, though today’s session opened weak with a 6.62% pullback from the prior close of $179.92. YTD, the stock is only 1.22% higher after a February drawdown, and it sits 8% below its 52-week high of $207.52.
The catalyst has been Q2 FY2026: revenue of $1.94 billion grew 92.83% year over year, EPS of $0.41 beat consensus by 46.43%, and U.S. commercial revenue rocketed 149%. Management raised full-year guidance to $8.150 to $8.158 billion, which they described as their “largest-ever full-year revenue guidance raise.”
Bull Case: $228 and Beyond Bulls have a straightforward thesis. Palantir’s Rule of 40 score hit 155%, net dollar retention reached 157%, and Total Contract Value grew 129% on a duration-weighted basis. Karp told investors he is “driving the business to grow at a rate equal or above to what we have in U.S. commercial for the next 18 months.”
Government exposure adds another leg: the FY2027 Department of War budget requests a historic $58.5 billion for AI investment, and Palantir’s trailing 12-month defense revenue is still less than 25 basis points of the Pentagon’s budget. Our bull-case one-year target is $228.06.
What Could Go Wrong The bear case starts with valuation. PLTR trades at a trailing P/E of 255 and a price-to-free-cash-flow of 197. Insider activity has skewed toward selling, and Polymarket’s near-term composite sentiment reads bearish at 39.55.
Stock-based comp of $265 million in Q2 is real dilution. Bulls will note that SBC funds the elite technical hiring driving the platform, and GAAP operating margin still expanded to 47%. Our bear-case one-year target is $182.48.
How Palantir Compares to ServiceNow and Snowflake ServiceNow (NYSE:NOW) is the closest scaled enterprise AI workflow peer. NOW posted Q2 FY2026 revenue of $3.99 billion, up 24%, with ServiceNow AI crossing $1 billion in ACV. Palantir grew nearly four times faster off a smaller base, which supports our premium target.
Snowflake (NYSE:SNOW) is the data-platform contrast. SNOW’s Q1 FY2027 revenue rose 33.5% to $1.39 billion, but the company remains unprofitable with a negative earnings yield of -1.2%. Palantir’s 62% adjusted operating margin makes the 24/7 Wall St. price target look reasonable relative to this peer set.
Palantir Price Prediction 2026-2030 The 24/7 Wall St. price target of $219.66 rests on one factor above all: Palantir is compounding growth and margin simultaneously at a scale nothing else in software matches.
The constructive case strengthens if U.S. commercial TCV keeps growing above 100%. The setup weakens if the Rule of 40 score slips below 100% or if government AI budgets stall. For now, the fundamentals support the premium multiple.
Year 24/7 Wall St. Price Target 2026 $219.66 2027 $258 2028 $298 2029 $330 2030 $362 These projections assume Palantir executes on its sovereign AI roadmap and defense pipeline. A recession-driven pause in enterprise AI budgets, or accelerated share dilution, could compress this trajectory materially.
Contact [email protected] for any questions or corrections.
It has been about a month since the last earnings report for Wayfair (W - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Wayfair due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Wayfair Inc. before we dive into how investors and analysts have reacted as of late.
Wayfair Q2 Earnings Beat Estimates on U.S. Demand, Market Share GainsWayfair reported second-quarter 2026 earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Net revenues for the second quarter of 2026 rose 7.5% year over year to $3.52 billion, surpassing the Zacks Consensus Estimate of $3.47 billion by 1.41%.
The outperformance was driven by accelerating U.S. demand, sustained market share gains and outsized growth from the company's specialty and luxury brands, including Perigold.
Last Twelve Months (LTM) net revenues per active customer increased 4.2% year over year to $596 as of June 30, 2026. The active customer base rose 3.3% year over year to 21.7 million.
Wayfair’s Q2 in DetailsNet revenues in the United States (88.8% of total net revenues) increased 8.7% year over year to $3.13 billion, the strongest growth the segment has posted in the post-pandemic period. International net revenues (11.2% of total net revenues) declined 1.3% year over year to $394 million. On a constant currency basis, international revenues declined 2% year over year.
Orders per customer (LTM orders delivered divided by active customers) were 1.89 for the quarter, up from 1.86 in the second quarter of 2025. The average order value expanded from $328 to $332 year over year.
Total orders delivered in the second quarter were 10.6 million, up 6% year over year. Repeat customers placed 8.5 million orders (80.2% of total orders delivered), representing an increase of 4.9% year over year compared with 80.7% of total orders in the second quarter of 2025. Mobile orders accounted for 64.1% of total orders delivered, up from 62.9% in the second quarter of 2025.
Operating Results of WayfairWayfair's second-quarter gross profit was $1.05 billion, representing a gross margin of 30%, which contracted 10 basis points year over year. Non-GAAP Contribution Profit was $539 million, or 15.3% of net revenues, representing a contribution margin improvement of 10 basis points year over year. Adjusted EBITDA was $242 million in the reported quarter, up 18% year over year, representing an adjusted EBITDA margin of 6.9%, which expanded 60 basis points year over year and marked the company's best margin performance since 2021.
Customer service and merchant fees represented 3.6% of net revenues. Advertising expenses represented 11.1% of net revenues, an improvement of roughly 30 basis points from the second quarter of 2025. Selling, operations, technology and general and administrative (SOT G&A) expenses were $361 million for the quarter, delivering 100 basis points of leverage against the prior-year period.
Wayfair reported a GAAP net loss of $1 million for the second quarter against GAAP net income of $15 million in the second quarter of 2025. GAAP loss per share was 1 cent versus earnings of 11 cents a year earlier. Second-quarter results included a $59 million loss on debt extinguishment tied to the repurchase of 2028 convertible notes.
Balance Sheet & Cash Flow of WayfairAs of June 30, 2026, cash and cash equivalents were $1.07 billion, and short-term investments were $78 million, bringing the combined total to $1.14 billion compared with $1.06 billion as of March 31, 2026. Total liquidity reached $1.6 billion, including availability under the revolving credit facility, up from $1.5 billion as of March 31, 2026.
Long-term debt as of June 30, 2026, was $2.8 billion compared with $2.93 billion as of March 31, 2026, reflecting the redemption of the remaining 2028 convertible notes, funded in part through the issuance of a $400 million high-yield note.
Net cash provided by operating activities was $360 million in the second quarter, up from $273 million in the second quarter of 2025. Non-GAAP free cash flow was $301 million, up more than 30% year over year and the strongest quarterly figure since the second quarter of 2020. Capital expenditures totaled $59 million for the quarter.
Q3 2026 GuidanceFor the third quarter of 2026, Wayfair expects revenues to grow in the high single digits year over year.
The company expects gross margin in the range of 29.5% to 30.5% of net revenues, with results likely landing toward the lower end as investment in the customer experience, including the loyalty program, continues.
Customer service and merchant fees are expected to be just below 4% of net revenues, while advertising is expected in the 10.5% to 11.5% range, also toward the low end. Together, this should yield a contribution margin in line with or slightly better than the second quarter. SOT G&A is expected to hold in the $360 million to $370 million range.
Adjusted EBITDA margin is guided in the 6% to 7% range for the third quarter.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 71.26% due to these changes.
VGM ScoresCurrently, Wayfair has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wayfair has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerWayfair is part of the Zacks Internet - Commerce industry. Over the past month, Carvana (CVNA - Free Report) , a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago.
For the current quarter, Carvana is expected to post earnings of $0.49 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.
Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Akcie Pinterest za měsíc od poslední výsledkové zprávy ztratily asi 9,2 %. Ve 2. čtvrtletí ale tržby vzrostly o 18 % na 1,18 miliardy USD a zisk na akcii překonal odhady.
A month has gone by since the last earnings report for Pinterest (PINS - Free Report) . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Pinterest due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Pinterest, Inc. before we dive into how investors and analysts have reacted as of late.
Pinterest's Q2 Earnings Top Estimates on AI-Led Ad Growth
Pinterest reported second-quarter 2026 non-GAAP earnings of 43 cents per share, beating the Zacks Consensus Estimate of 36 cents by 19.44%. The bottom line increased from the year-ago quarter’s adjusted earnings, while revenues climbed 18% year over year to $1.18 billion and topped the consensus estimate of $1.152 billion by 2.39%.
Results reflected continued momentum in AI-powered advertising, improving monetization and record user growth. Global monthly active users (MAUs) increased 11% year over year to 640 million, marking the company's 12th consecutive quarter of record users.
PINS Posts Another Quarter of User Growth
Pinterest ended the quarter with 640 million global MAUs, up 11% year over year, extending its streak of double-digit user growth. Growth remained broad-based across geographies, with U.S. and Canada MAUs increasing 4%, Europe rising 8% and Rest of World climbing 15%.
User engagement continued to benefit from AI-driven personalization. Management highlighted that Pinterest's proprietary Taste Graph is powered by more than 80 billion monthly searches and more than 16 billion user-created boards, helping deliver more relevant recommendations and strengthening the platform's position as a visual shopping destination.
Pinterest Expands Monetization Through AI
Pinterest generated revenues of $1.18 billion, up 18% year over year. Growth was led by stronger advertiser demand, particularly across conversion and consideration campaigns, supported by enhancements to the company's AI-powered advertising platform. Retail remained the largest contributor, while financial services, travel and health were among the fastest-growing verticals.
Geographically, U.S. and Canada revenues increased 18% to $880 million. Europe revenues rose 12% to $213 million, while Rest of World revenues surged 38% to $87 million. Ad impressions increased 16% year over year, while average ad pricing improved 1%, aided by stronger demand in the higher-priced U.S. and Canada market.
PINS Advances AI Products Across Platform
Artificial intelligence remained central to Pinterest's product strategy during the quarter. The company rolled out Pinterest Assistant to the vast majority of U.S. users, enabling conversational shopping experiences, product comparisons and personalized recommendations throughout the buying journey.
Pinterest also expanded its advertising capabilities. Smart Assembly was introduced to automatically optimize creative assets for advertisers without product catalogs, while Business Assistant entered beta to help advertisers improve campaign performance. Management also expanded testing of AI-powered bidding integrations and continued building out Pinterest Performance+ to automate campaign creation, targeting and optimization.
Pinterest Margins Improve Despite Investments
Pinterest continued to deliver profitability improvements as revenue growth outpaced spending. Adjusted EBITDA increased 24% year over year to $311 million, while adjusted EBITDA margin expanded to 26% from 25% in the prior-year period.
Cost of revenue increased 25% year over year to $245 million, reflecting higher GPU infrastructure investments and the full-quarter impact of tvScientific. Non-GAAP operating expenses rose 13%, driven primarily by higher sales and marketing spending tied to the company's new brand campaign and increased research and development investments supporting AI initiatives.
PINS Strengthens Cash Flow and Liquidity
Pinterest generated $293 million in operating cash flow and $270 million in free cash flow during the second quarter. The company ended the period with $1.3 billion in cash, cash equivalents and marketable securities. It also allocated $58 million toward share repurchases during the quarter and noted that it had repurchased more than $2 billion of stock year to date, retiring approximately 111 million shares.
The company also entered into a capped-call transaction for $99 million, increasing protection against dilution from its previously issued convertible notes up to a share price of $30.59. Management said the strong cash generation and balance sheet provide flexibility to continue investing in AI initiatives while returning capital to shareholders.
Pinterest Outlook Reflects Continued Growth
For the third quarter of 2026, Pinterest expects revenues between $1.19 billion and $1.21 billion, representing year-over-year growth of 13% to 15%. Adjusted EBITDA is projected in the range of $335 million to $355 million.
Management also raised its full-year adjusted EBITDA margin outlook to approximately 30% from the prior target of 29%, reflecting stronger-than-expected first-half execution. The company expects continued progress from AI-driven advertising, monetization initiatives and go-to-market improvements, although foreign exchange and the timing of Prime Day and World Cup-related advertising spending are expected to create modest headwinds in the third quarter.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted -5.74% due to these changes.
VGM ScoresAt this time, Pinterest has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pinterest has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPinterest is part of the Zacks Internet - Software industry. Over the past month, Meta Platforms (META - Free Report) , a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Meta Platforms reported revenues of $60.8 billion in the last reported quarter, representing a year-over-year change of +28%. EPS of $6.18 for the same period compares with $7.14 a year ago.
For the current quarter, Meta Platforms is expected to post earnings of $6.33 per share, indicating a change of -12.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Meta Platforms. Also, the stock has a VGM Score of C.
AMC spouští Leawood Films, která bude distribuovat malé a střední filmy bez financování jejich výroby. Ve 2. čtvrtletí upravená EBITDA vyskočila o 70 % meziročně na 321,4 mil. USD.
Key Takeaways AMC's Leawood Films will distribute movies without financing their production costs.AMC's Q2 adjusted EBITDA surged 70% YoY to $321.4M as attendance and per-patron spending strengthened.AMC's 69% YTD rally likely faces a test from elevated leverage and uneven full-year cash generation. AMC Entertainment Holdings, Inc. (AMC - Free Report) is attracting attention following the creation of Leawood Films, a distribution venture designed to bring more small and medium-sized movies to theaters. The initiative is expected to leverage AMC’s global exhibition network, marketing capabilities and industry relationships without requiring the company to finance film production.
The announcement builds on AMC’s record-breaking second-quarter results and historic attendance generated by The Odyssey and Spider-Man: Brand New Day. AMC shares have surged approximately 69.2% year to date, outperforming the Zacks Leisure and Recreation Services industry and the S&P 500.
AMC’s YTD Price Performance
Image Source: Zacks Investment Research
With operating momentum strengthening and Leawood Films opening another potential revenue channel, should investors chase AMC’s rally? Let’s analyze.
Leawood Films Expands AMC’s Growth StoryLeawood Films will focus primarily on distributing small and medium-sized releases that might otherwise struggle to secure theatrical backing. The venture will work only with completed films or projects whose production costs have already been fully financed by filmmakers. This structure limits AMC’s exposure to the development and production risks traditionally associated with movie studios.
AMC plans to use its ability to secure screens, market films and collaborate with other domestic and international exhibitors. The model builds on the company’s distribution experience with Taylor Swift: The Eras Tour, Renaissance: A Film by Beyoncé and Taylor Swift: The Official Release Party of a Showgirl.
The venture is intended to supplement rather than compete with content supplied by AMC’s major studio partners. It will also preserve a theatrical window of at least 45 days before premium video-on-demand availability and 90 days or more before subscription streaming. Leawood Films could help AMC utilize excess theater capacity while broadening the supply of theatrical content. Leawood Films has not selected its initial releases, and its first projects are not expected to reach theaters until sometime in 2027 or 2028.
Record Theater Momentum Strengthens AMC’s Investment CaseLeawood Films arrives as AMC’s core exhibition business shows meaningful improvement. More than 71 million guests visited AMC and ODEON theaters during the second quarter of 2026, up 13.5% year over year. Revenues increased 14.2% to approximately $1.6 billion, while adjusted EBITDA surged 70% to a company-record $321.4 million.
The adjusted EBITDA margin expanded 650 basis points to 20.1%. Approximately $200 million of incremental revenues generated $131.9 million of additional adjusted EBITDA, representing roughly 66% flow-through. Free cash flow reached $190.1 million, highlighting the operating leverage and cash-generation potential available when attendance growth combines with higher per-patron spending and cost discipline.
The momentum extended into the third quarter. From July 16 through July 26, The Odyssey generated AMC’s highest IMAX revenues through the first two weekends of any film in the company’s history. AMC operates approximately half of all IMAX screens in the United States, positioning the company to benefit from growing demand for immersive theatrical experiences.
The subsequent opening of Spider-Man: Brand New Day, together with continued demand for The Odyssey and other releases, drove AMC’s highest-revenue Wednesday-through-Sunday period in its 106-year history. More than 10.2 million guests visited AMC and ODEON locations, producing company records for admissions and food-and-beverage revenues.
AMC’s Premium Formats and Loyalty Support SpendingPremium viewing formats are strengthening AMC’s ability to monetize attendance. Premium large-format and XL auditoriums represented about 8% of AMC’s screen base but generated more than half of its ticket revenues from The Odyssey during the film’s opening weekend. AMC intends to continue expanding its IMAX, Dolby Cinema, Prime, iSense and XL footprint, which should support its premium-ticket mix and revenue per patron.
Loyalty and ancillary offerings provide additional support. AMC Stubs members represented slightly more than half of the company’s U.S. guest count in the second quarter, while the A-List subscription program exceeded 1.1 million members and accounted for approximately 20% of domestic patronage. Meanwhile, AMC expects its movie-themed merchandise business to generate more than $100 million in revenues during 2026.
AMC’s Valuation and Competitive LandscapeFrom a valuation standpoint, AMC stock appears inexpensive, trading at a forward 12-month price-to-sales ratio of 0.42X, substantially below the industry average of 2.71X. The stock also trades at a discount to Cinemark Holdings, Inc. (CNK - Free Report) and The Marcus Corporation (MCS - Free Report) , which carry respective forward sales multiples of approximately 1.12X and 1.04X.
Image Source: Zacks Investment Research
AMC faces strong competition from Cinemark and Marcus, both of which entered the second half of 2026 with solid operating momentum and stronger financial flexibility. Cinemark surpassed $1 billion in quarterly revenues for the first time and generated a record adjusted EBITDA of $294 million, a 27.1% margin and nearly $300 million in free cash flow. The company continues to see growth opportunities across premium formats, strategic pricing, concessions and loyalty, although the sustainability of its market-share gains will depend on film mix and a consistent box-office recovery. Marcus reported 16.6% growth in comparable theater admissions revenues and a nearly 37% increase in theater-adjusted EBITDA to $36.3 million. Its $44 million in free cash flow, 1.1X net leverage and hotel business provide added financial strength and earnings diversification, while premium screens at 84% of its theater locations position it to capture demand for higher-priced formats.
AMC’s competitive position is supported by its global scale, broad premium-format footprint and established loyalty base, with Leawood Films adding a new distribution opportunity. However, Cinemark’s stronger margin and free-cash-flow performance and Marcus’ lower leverage highlight areas where AMC still has room to strengthen its financial profile.
AMC’s Risk Factors and MitigationAMC’s performance remains closely tied to the timing and audience reception of theatrical releases. Film delays or weaker-than-expected box-office results could pressure attendance, ticket revenues and concession sales. Although AMC generated $190.1 million in free cash flow during the second quarter, it has not yet achieved positive free cash flow over a full 12-month period. The company estimates that the annual domestic industry box office will need to reach approximately $10.4 billion to meet that goal. AMC’s working-capital cycle typically has a negative cash impact in the first and third quarters, adding to quarterly cash-flow volatility.
The balance sheet remains another concern. AMC’s leverage has fallen below 6.5 times but remains well above its long-term target of approximately three times, while recent equity offerings have diluted existing shareholders.
ConclusionAMC’s Leawood Films initiative represents a strategically sensible extension of the company’s exhibition and marketing capabilities. Its limited production-risk structure, combined with AMC’s global screen network, could broaden theatrical content and generate incremental revenues over time. Record second-quarter results, historic blockbuster weekends and strong premium-format demand further demonstrate that the company’s operating recovery is gaining traction.
However, Leawood Films is not expected to be a near-term earnings driver. AMC also remains exposed to an unpredictable film slate, elevated leverage, potential shareholder dilution and uneven cash-flow generation. Moreover, the stock’s substantial year-to-date rally suggests that part of the operating recovery may already be reflected in its price.
Against this backdrop, existing shareholders may consider retaining AMC stock while prospective investors may prefer to wait for a better entry point. AMC currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amgen za poslední měsíc přidal asi 8,6 % po lepších výsledcích za 2. čtvrtletí. Firma zároveň zvýšila výhled tržeb pro rok 2026 na 38,2–39,4 miliardy USD.
A month has gone by since the last earnings report for Amgen (AMGN - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Amgen 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.
Q2 Earnings & Sales Beat EstimatesAmgen reported second-quarter 2026 adjusted earnings of $6.29 per share, up 4% year over year. Earnings beat the Zacks Consensus Estimate of $5.60 as higher revenues were partially offset by higher operating costs and higher taxes.
Total revenues increased 10% to $10.1 billion and surpassed the consensus estimate of $9.44 billion.
Total product sales increased 9% year over year to $9.54 billion, driven by higher volumes.
Other revenues were $517 million in the quarter, up 26.7% year over year.
Broad-based volume growth across Repatha, Evenity, Tezspire, Uplizna and oncology products more than offset biosimilar erosion for Prolia and Xgeva and weakness in mature brands like Otezla and Enbrel. New biosimilar products are also contributing to sales growth.
Twenty-two products achieved double-digit sales growth in the quarter.
Amgen’s key growth drivers, which include Repatha, Evenity, Tezspire and oncology and rare disease drugs, as well as biosimilar products, rose 26% year over year in the second quarter. These key growth drivers represented almost 70% of Amgen’s total product sales.
Bone and Heart Drugs Top ExpectationsRepatha sales surged 37% year over year to $953 million, exceeding the Zacks Consensus Estimate of $907 million. The increase was driven by volume growth. New-to-brand prescriptions in the United States rose more than 50%, supported by increased use in secondary prevention and high-risk primary prevention patients.
Evenity sales climbed 38% to $714 million, driven by solid volume growth. Evenity sales beat the Zacks Consensus Estimate of $636 million.
Prolia sales declined 32% to $759 million but exceeded the estimate of $728 million as multiple biosimilars affected volumes and pricing. Xgeva revenues fell 34% to $352 million, slightly missing the consensus mark of $356 million.
Patents for Prolia and Xgeva expired in 2025. Sales of these best-selling drugs are eroding significantly in 2026 as several biosimilars have been launched globally with more biosimilars expected.
Inflammation and Oncology Drugs’ Mix Performance
Tezspire sales rose 42% year over year to $486 million, marginally exceeding the Zacks Consensus Estimate of $483 million. Demand increased in severe uncontrolled asthma, while the uptake of its new indication of chronic rhinosinusitis with nasal polyps was encouraging.
Otezla sales declined 21% to $491 million, missing the consensus estimate of $562 million, due to lower pricing and volume.
Enbrel revenues decreased 4% to $580 million due to lower selling prices (including the impact from increased 340B program mix and Medicare Part D redesign), partially offset by favorable changes to estimated sales deductions. Enbrel sales topped the estimate of $466 million.
Nplate sales rose 17% year over year to $430 million.
In oncology, Blincyto sales increased 23% to $472 million, surpassing the consensus estimate of $457 million. Growth reflected broader prescribing in U.S. academic and community settings and strong international demand.
Kyprolis recorded sales of $314 million, down 17% year over year, due to lower volumes.
Vectibix revenues came in at $338.0 million, up 11% year over year. Lumakras/Lumykras sales rose 23% year over year to $111 million.
New cancer drug Imdelltra’s sales rose 11.6% sequentially to $288 million, supported by increased adoption in second-line small-cell lung cancer.
In oncology biosimilars, sales of Mvasi were $153 million in the quarter, down 20% year over year, due to lower selling prices and lower volume.
Rare Disease Drugs Sales RiseAmgen’s rare-disease portfolio generated $1.6 billion in quarterly revenues, up 21%, supported by international expansion, additional indications and pricing.
Uplizna revenues increased 90% year over year to $335 million, beating the Zacks Consensus Estimate of $306 million. Performance reflected sustained momentum across its three approved indications, aided by broader physician adoption and the drug’s twice-yearly maintenance dosing.
On the conference call, Amgen said that growth continues for Uplizna in IgG4-related while uptake for Uplizna in generalized myasthenia gravis or gMG is increasing across both bio-naive and switch patients.
Tepezza sales advanced 14% to $576 million, driven by higher volumes and pricing.
On the call, the company mentioned that uptake in Japan following last year's launch remains strong. The company has launched Tepezza in 13 countries and expects to launch it in six additional markets in the near term.
Krystexxa revenues rose 15% to $400 million driven by higher pricing, partially offset by lower inventory levels. Tavneos sales increased 36% to $150 million driven by volume growth.
Ultra-rare products generated revenues of $149.0 million in the quarter, down 19% year over year.
BiosimilarsTotal biosimilar sales were $855 million in the quarter, up 29% year over year.
Sales of Wezlana were $61 million, compared with $47 million in the previous quarter, entirely from ex-U.S. markets. Pavblu generated sales of $287 million in the quarter, up 2.5% sequentially, driven by increased adoption among retina specialists. Sales of Amjevita/Amgevita were $155 million in the quarter, up 17% year over year.
Established ProductsTotal sales of established products, which include Aranesp, Parsabiv and Neulasta, increased 19% year over year in the second quarter to $632 million.
Operating Margin DeclinesAdjusted operating margin declined 0.5 percentage points year over year to 48.4% in the second quarter.
Adjusted operating expenses increased 11% to $5.44 billion. R&D expenses rose 10% year over year to $1.85 billion, reflecting higher spending on late-stage clinical programs, particularly MariTide. SG&A expenses increased 4% to $1.72 billion, mainly due to higher general and administrative expenses and increased commercial product-related spending.
The adjusted tax rate was 15.6% in the quarter, up 1.4 points from the year-ago quarter.
Raises 2026 GuidanceAmgen raised its financial outlook for 2026 for the second time this year.
Amgen raised its total revenue guidance for 2026 to a range of $38.2 billion to $39.4 billion. The company previously expected revenues between $37.1 billion and $38.5 billion.
Adjusted earnings guidance was increased to $22.30-$23.50 per share from the prior range of $21.70-$23.10. The improved outlook reflects strong first-half execution and continued momentum across the company’s key growth products.
Other revenues are expected to be approximately $1.9 billion compared with the prior expectation of being in the range of $1.7 billion to $1.8 billion in 2026.
Adjusted R&D is expected to increase in a high single-digit range year over year in 2026. Amgen expects a meaningful sequential increase in operating expenses in the third quarter.
Adjusted operating margin is expected to be roughly 45% to 46% for 2026.
The adjusted tax rate is expected to be in the range of 15.0% to 16.5%. Capital expenditures are expected to be approximately $2.6 billion.
Share repurchases are expected not to exceed $3 billion in 2026.
Pipeline Update Amgen announced that it will discontinue further development of AMG 513, while its ongoing phase I obesity study will continue until all enrolled participants complete the study.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, Amgen has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Amgen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAmgen is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Krystal Biotech, Inc. (KRYS - Free Report) , a stock from the same industry, has gained 13.3%. The company reported its results for the quarter ended June 2026 more than a month ago.
Krystal Biotech reported revenues of $119.22 million in the last reported quarter, representing a year-over-year change of +24.1%. EPS of $1.79 for the same period compares with $1.29 a year ago.
Krystal Biotech is expected to post earnings of $1.91 per share for the current quarter, representing a year-over-year change of -28.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Krystal Biotech. Also, the stock has a VGM Score of D.
Broadcom staví svůj výhled pro AI na společnosti Anthropic, soukromé firmě, kterou retail investoři nemohou koupit. Cramer říká, že právě tato závislost je pro AVGO klíčová.
Jim Cramer says Broadcom's AI revenue forecast is the jaw-drop number of the year, but the customer driving it is a company no retail investor can actually own, and that hidden dependency may be the only thing that matters for…
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Jim Cramer walked onto CNBC’s Squawk on the Street Thursday morning with a warning that reframes the entire Broadcom AI trade. "This is now Anthropic. It’s Anthropic or bust… They need Anthropic to have a blockbuster IPO." The most important customer underwriting the biggest custom-silicon guide in semiconductor history is a company you cannot buy on any exchange.
I’ve been following Broadcom (NASDAQ:AVGO | AVGO Price Prediction) since the Avago days, and I have never seen a forward number quite like the one Hock Tan dropped after the close on Tuesday. The reaction the next morning was brutal.
Jaw-Drop Number Behind the Selloff Broadcom’s Q3 FY2026 was strong on its own. Revenue came in at $29.59 billion, up 85.5% year over year, with AI semiconductor revenue of $16.7 billion, growing 221% year over year and 54% sequentially. Non-GAAP EPS of $3.32 extended the beat streak to nine straight quarters.
Then Tan gave the number Cramer called the "jaw drop statement" of the call. Broadcom expects AI semiconductor revenue to reach approximately $115 billion in fiscal 2027, and then double again in fiscal 2028 to $230 billion. Tan added that Q3 demand "was simply hot and we’re just getting started" and that customer compute needs would "inflate even more in 2027 and 2028."
Investors sold it anyway. AVGO closed at $367.24 Wednesday and traded at $352.04 by Thursday midday, down 4%. The stock is now down 6% over the past month, even though it remains up 24% year over year.
Why Anthropic Is the Whole Story Tan named the customers behind the number. Anthropic is deploying one gigawatt of Ironwood in 2026, another five gigawatts of TPU v8i in 2027, and has line of sight to an incremental 10 gigawatts in 2028. Tan said Anthropic "is on track to become our largest XPU customer in 2027 and sustain that in 2028."
OpenAI is second on the list, with 1.3 gigawatts of Jalapeno planned for 2027 and line of sight for over 5 gigawatts in 2028. Google, Meta, and two unnamed customers round out the six. Broadcom’s own Q3 8-K filing lists "dependence on a limited number of significant customers for AI semiconductor demand" as a risk factor.
Here is the problem for a retail investor. Anthropic is private. If you want exposure to the customer that will supposedly drive Broadcom’s largest single revenue line to $230 billion in fiscal 2028, you cannot get it directly. Cramer’s point is that an Anthropic IPO becomes the clearing event that validates the entire chain.
NVIDIA Comparison Matters NVIDIA (NASDAQ:NVDA) sits on the other side of this same customer. Jensen Huang’s strategic partnership with OpenAI to deploy at least 10 gigawatts of NVIDIA systems, combined with the Anthropic scaling on NVIDIA infrastructure with an initial 1 gigawatt commitment, gives NVIDIA a diversified frontier-lab book. NVIDIA’s Q2 FY2027 revenue of $96.22 billion, up 105.8% year over year, and Q3 guidance of $108 billion spread that concentration across more customers and more geographies.
The market treated it accordingly Thursday. NVDA traded up 2% to $227.88 while Broadcom sold off. NVIDIA’s diversified customer base insulates it from the single-customer exposure weighing on Broadcom.
Anthropic Risk Layer One more wrinkle worth pricing in: Anthropic disclosed that foreign AI labs used 24,000 fraudulent accounts to distill its Claude models. Model-distillation risk is now a real line item for any lab preparing to go public.
What to Watch If you own Broadcom because you believe in the $230 billion fiscal 2028 AI number, you are effectively long an Anthropic IPO that has not been filed. Cramer’s framing is blunt, and the price action Thursday says the market heard him. Watch for two things: any formal Anthropic S-1 filing, and Broadcom’s fiscal Q4 report scheduled for December 9, 2026, where the customer mix behind that $115 billion FY27 setup gets its first real update. Cramer said Anthropic is the stock you cannot buy. For AVGO holders, it may be the only one that matters.
Data Sources Cramer’s CNBC Squawk on the Street appearance was the source for the "Anthropic or bust" framing and the "jaw drop" characterization of Tan’s fiscal 2028 guidance. Broadcom’s Q3 FY2026 earnings call transcript provided the customer-by-customer gigawatt roadmap and the $115B/$230B AI revenue trajectory. Broadcom’s Q3 FY2026 8-K filing supplied revenue, EPS, and the customer-concentration risk language. Intraday price performance for AVGO and NVDA came from public market data. Contact [email protected] for any questions or corrections.
Akcie Cummins po posledních výsledcích za měsíc klesly asi o 15,3 %, i když tržby ve 2. čtvrtletí vzrostly o 9,4 % na 9,46 miliardy USD. Firma zároveň zvýšila výhled tržeb pro rok 2026 na 10–13 %.
A month has gone by since the last earnings report for Cummins (CMI - Free Report) . Shares have lost about 15.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cummins due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cummins Inc. before we dive into how investors and analysts have reacted as of late.
Cummins Q2 Earnings Miss EstimatesCummins reported second-quarter 2026 adjusted earnings of $6.94 per share, which missed the Zacks Consensus Estimate of $7.33 by 5.3%. Higher incentive compensation, research and development spending, freight costs and product coverage expenses put pressure on profitability.
Revenues increased 9.4% year over year to $9.46 billion and topped the consensus mark of $9.33 billion by 1.38%. Growth was led by global power generation demand, international construction markets and improving North American truck activity.
Engine Margin Falls on Higher CostsEngine segment sales increased 6% year over year to $3.08 billion. Total engine shipments rose 9.7% to 161,200 units. North American revenues rose 1%, while international sales jumped 23%, primarily on stronger construction demand in China.
Segment EBITDA declined to $386 million from $400 million, while margin contracted to 12.5% from 13.8%. Higher research and development and freight costs outweighed benefits from stronger North American medium-duty truck volumes, China construction demand and improved tariff recovery.
Components Sales Gain on Truck DemandComponents segment sales advanced 7% to $2.89 billion. Revenues increased 6% in North America and 8% internationally, reflecting stronger truck demand in the United States and China.
Segment EBITDA decreased to $381 million from $397 million, with margin falling to 13.2% from 14.7%. Higher product coverage costs were partly offset by favorable pricing, stronger North American truck volumes and increased China on- and off-highway activity.
Distribution Margin Faces Cost PressureDistribution segment sales rose 9% to a record $3.33 billion. North American revenues climbed 13%, while international revenues increased 1%, driven by demand for power generation products, particularly for data center applications.
Segment EBITDA increased slightly to $451 million from $445 million, but margin declined to 13.6% from 14.6%. Higher incentive compensation and freight expenses more than offset increased power generation volumes. Slower parts growth relative to power generation also limited margin expansion.
Power Systems Delivers Margin ExpansionPower Systems sales surged 19% to a record $2.26 billion. Revenues increased 19% in both North America and international markets, supported by data center power demand in the United States, China and Asia Pacific.
Segment EBITDA climbed to $552 million from $430 million, while margin expanded to 24.5% from 22.8%. Strong global power generation volumes were the primary driver. Higher China joint venture earnings, favorable production efficiency and pricing boosted results. Power generation sales jumped to $1.54 billion from $1.21 billion, while industrial sales increased to $538 million.
Accelera Loss Narrows on Cost ActionsAccelera segment sales increased 38% to $145 million, driven by higher electrified powertrain and electrolyzer sales.
The segment posted a negative EBITDA loss of $69 million, narrowing from a loss of $100 million a year earlier. The improvement reflected targeted cost-reduction actions previously implemented as Cummins focused zero-emissions investments on its most promising opportunities.
Cash Flow Supports Capital ReturnsCummins generated record second-quarter operating cash flow of $1.5 billion, up from $785 million. Capital expenditures increased to $249 million from $231 million.
Cash, cash equivalents and marketable securities totaled $3.92 billion at quarter-end, compared with $3.61 billion at the end of 2025. Long-term debt declined to $6.74 billion from $6.79 billion. The company returned $501 million through $276 million in dividends and $225 million in share repurchases.
Cummins also increased its quarterly dividend to $2.20 per share from $2.00, marking its 17th consecutive annual dividend increase.
Cummins Raises 2026 OutlookCummins now expects full-year 2026 revenues to increase 10-13%, up from its prior projection of 8-11%. The revision reflects stronger demand in North American on-highway markets, China construction and power generation. Management expects the second half of 2026 to be stronger than the first half. The company raised the low end of its EBITDA margin outlook to 18%, resulting in a new range of 18.0-18.5%, excluding first-quarter fuel cell business sale charges.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 5.07% due to these changes.
VGM ScoresAt this time, Cummins has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cummins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
A month has gone by since the last earnings report for Archer Daniels Midland (ADM - Free Report) . Shares have added about 10.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ADM 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 drivers.
Archer Daniels Q2 Earnings Beat on Crushing and Ethanol StrengthArcher Daniels posted second-quarter 2026 adjusted earnings of $1.84 per share, up 98% year over year. The figure surpassed the Zacks Consensus Estimate of $1.42 by 29.6%. On a reported basis, earnings were $1.87 per share, substantially up from 45 cents in the year-ago quarter.
Revenues increased 7.1% to $22.68 billion and beat the consensus estimate of $22.38 billion. Results benefited from margin expansion in Ag Services and North American crushing and robust ethanol economics. Global oilseed volumes increased roughly 5% compared with the prior-year quarter.
Total segment operating profit increased 75% year over year to $1.5 billion, reflecting broad-based growth across all three operating segments.
Archer Daniels' Revenue Mix Shows AS&O StrengthAg Services and Oilseeds revenues increased 10.1% year over year to $17.9 billion. Carbohydrate Solutions revenues declined 1.3% to $2.8 billion, while Nutrition revenues fell 4.6% to $1.9 billion. Other Business revenues decreased 5.4% to $106 million. The Zacks Consensus Estimate for revenues is pegged at $17.5 billion for Ag Services and Oilseeds, $2.9 billion for Carbohydrate Solutions and $2 billion for Nutrition.
The company processed 9.5 million metric tons of oilseeds, up 4.7% from the prior-year quarter and surpassed the Zacks Consensus Estimate of 9.3 million metric tons. Corn processing volumes rose 2.6% to 4.7 million metric tons. Higher asset utilization supported the improvement in global oilseed volumes.
ADM's Oilseeds Profit More Than DoublesAg Services and Oilseeds operating profit surged 129% to $867 million. Results included roughly $100 million of net positive mark-to-market and timing impacts, mainly within Crushing. Margin expansion in Ag Services and North American crushing provided the primary lift.
Ag Services operating profit climbed 159% to $293 million as ADM leveraged its global asset network and benefited from increased soybean exports and the return of its Barcarena, Brazil, terminal to full operations. Crushing profit substantially jumped to $363 million from $33 million, supported by stronger biofuel margins, elevated energy prices and record meal exports from Brazil and the United States.
Archer Daniels Gains From Strong Ethanol MarginsCarbohydrate Solutions operating profit increased 22% year over year to $411 million. Robust North American ethanol margins, policy incentives, elevated energy prices and lower U.S. corn prices improved ethanol’s economics relative to competing blendstocks. These conditions supported higher domestic blend rates and favorable industry exports.
Starches and Sweeteners operating profit rose 7% year over year to $326 million as stronger wet-milling ethanol margins offset lower liquid sweetener volumes and margins. Vantage Corn Processors’ profit increased 158% year over year to $85 million, aided by strengthening dry-milling ethanol margins and effective risk management.
ADM's Nutrition Recovery Builds MomentumNutrition operating profit advanced 51% year over year to $172 million, with improvement across Human Nutrition and Animal Nutrition. Human Nutrition operating profit increased 51% to $139 million, driven by Flavors growth, seasonal momentum and continued progress at the Decatur East plant.
Animal Nutrition operating profit grew 50% to $33 million. The increase reflected operational improvements and benefits from portfolio actions completed during 2025. The segment’s performance extended ADM’s recovery beyond its commodity-processing businesses.
Archer Daniels’ Other FinancialsThe company ended the quarter with cash and cash equivalents of $1.1 billion, long-term debt, including current maturities, of $7.6 billion, and shareholders’ equity of $23.6 billion. As of June 30, 2026, ADM generated $1.3 billion in cash from operating activities. It paid dividends of $510 million in the reported quarter.
Archer Daniels Raises Its 2026 OutlookADM raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment.
Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 14.23% due to these changes.
VGM ScoresCurrently, ADM has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise ADM has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerADM belongs to the Zacks Agriculture - Operations industry. Another stock from the same industry, Corteva, Inc. (CTVA - Free Report) , has gained 14.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Corteva, Inc. reported revenues of $6.38 billion in the last reported quarter, representing a year-over-year change of -1.2%. EPS of $2.30 for the same period compares with $2.20 a year ago.
Corteva, Inc. is expected to post a loss of $0.42 per share for the current quarter, representing a year-over-year change of -82.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Corteva, Inc.. Also, the stock has a VGM Score of F.
Booking Holdings za poslední měsíc oslabil o 3,6 % po zveřejnění výsledků, i když ve 2. čtvrtletí překonal odhady zisku i tržeb. Společnost čeká ve 3. čtvrtletí růst počtu pokojonocí o 3 % až 5 %.
It has been about a month since the last earnings report for Booking Holdings (BKNG - Free Report) . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Booking Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Booking Holdings Q2 Earnings & Revenues Beat Estimates, Rise Y/YBooking Holdings reported second-quarter 2026 adjusted earnings of $2.54 per share, beating the Zacks Consensus Estimate by 3.67%. The figure increased 15% year over year.
Revenues of $7.35 billion surpassed the consensus estimate by 2.26% and increased 8% year over year and about 7% on a constant currency (cc) basis.
The company benefited from resilient travel demand, with room nights rising 5% year over year to 325 million. Gross bookings increased by 9% to $51.0 billion, supported by room-night growth, higher constant-currency average daily rates and contributions from other travel verticals.
BKNG Delivers Broad Travel GrowthBooking Holdings’ room-night growth reflected continued demand despite geopolitical pressures. Domestic room nights grew high single digits globally, while international room nights increased slightly as long-haul travel remained affected by indirect impacts from the Middle East conflict.
The company saw mid-single-digit room night growth in Europe, Asia and the Rest of World, while the U.S. grew high single digits. Alternative accommodation room nights at Booking.com increased 4% year over year, with the category representing approximately 37% of Booking.com room nights.
Booking Holdings Expands Strategic InitiativesBooking Holdings continued to build its Connected Trip strategy, which combines multiple travel services into a more integrated customer experience. Connected Trip transactions grew in the low double digits year over year and represented a low double-digit percentage of Booking.com’s total transactions.
The company also highlighted progress in loyalty and mobile engagement. Level 2 and Level 3 Genius members accounted for a high-50% share of room nights, while the mobile app mix of total room nights remained in the high-50% range, both increasing year over year.
BKNG’s Revenue Growth Benefits From PaymentsMerchant revenues were $5.13 billion (69.7% of total revenues), up 15% year over year. Agency revenues were $1.90 billion (25.9% of total revenues), down 6.9% year over year. Advertising & Other revenues were $322 million (4.4% of total revenues), up 8.4% year over year.
Revenue growth trailed gross bookings growth primarily due to elevated cancellations in March that affected second-quarter revenues. The company also noted that higher payment revenues supported revenue performance during the quarter.
BKNG’s Q2 Operating ResultsBooking Holdings maintained cost discipline during the quarter. Total operating expenses increased 7% year over year to $4.85 billion, slower than revenue growth. Marketing expenses increased 11% to $2.37 billion, while sales and other expenses rose 5% to $942 million.
Adjusted EBITDA increased 9% year over year to $2.65 billion, while adjusted EBITDA margin expanded 40 basis points year over year.
BKNG increased its expected annual run-rate savings from its Transformation Program to approximately $650 million, with the additional savings expected to be realized primarily in 2027. The company incurred approximately $30 million in transformation costs during the second quarter.
BKNG’s Q2 Balance Sheet & Cash FlowAs of June 30, 2026, the company's cash and cash equivalents totaled $17.21 billion, up from $16.02 billion as of March 31, 2026.
Booking Holdings had $18.18 billion of total long-term debt, up from $15.40 billion as of March 31, 2026.
The company generated $3.64 billion in free cash flow during the quarter, up 16% year over year. BKNG returned $4.1 billion to its shareholders, including $3.7 billion through share repurchases, marking its highest quarterly capital return amount in company history.
Booking Holdings’ Q3 & 2026 OutlookBooking Holdings expects third-quarter 2026 room nights to grow 3% to 5%, while gross bookings, revenues and adjusted EBITDA are each projected to increase 4% to 6% year over year. The outlook assumes stability in the broader travel environment and continued indirect impacts from the Middle East conflict.
For full-year 2026, the company expects gross bookings, revenues and adjusted EBITDA to increase in the high-single-digit range, while adjusted EPS growth is projected in the low-to-mid-teens range. Management continues to focus on Connected Trip, AI capabilities and expansion in key markets.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresCurrently, Booking Holdings has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Booking Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
A month has gone by since the last earnings report for Fidelity National Information Services (FIS - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fidelity National due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Fidelity National Information Services, Inc. before we dive into how investors and analysts have reacted as of late.
FIS Beats Q2 Earnings on Banking Solutions Strength, Cuts 2026 Outlook
Fidelity National reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year.
Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%.
The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses.
FIS’ Q2 PerformanceThe cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure.
Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives.
Q2 Segmental Update of Fidelity NationalRevenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix.
The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year.
The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million.
FIS’ Q2 Financial UpdateFidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025.
Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter.
Total equity of $16 billion increased from $13.9 billion at 2025-end.
Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year.
FIS’ Share Repurchase & Dividend UpdateThe company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments.
FIS’ Key Expectations for Q3’26Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62.
FIS Updates 2026 GuidanceRevenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth.
Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%).
Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 7.7% year-over-year growth from $5.75 reported in 2025.
Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, Fidelity National 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 grade of A on the value side, putting it in the top 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.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fidelity National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerFidelity National belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Visa (V - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Visa reported revenues of $11.63 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $3.32 for the same period compares with $2.98 a year ago.
Visa is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Visa. Also, the stock has a VGM Score of F.
Spotify za poslední měsíc přidal asi 16 % po zveřejnění výsledků za 2. čtvrtletí, kdy tržby vzrostly o 14 % na 5,55 mld. USD, ale zisk na akcii zaostal za odhady.
It has been about a month since the last earnings report for Spotify (SPOT - Free Report) . Shares have added about 16% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Spotify 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 latest earnings report in order to get a better handle on the important catalysts.
Spotify's Q2 EarningsSpotify Technology S.A. reported second-quarter 2026 earnings of $3.03 per share, missing the Zacks Consensus Estimate of $3.27 by 7.3%. The company had incurred a loss in the year-ago quarter. Higher marketing, cloud and artificial intelligence spending weighed on the bottom line.
Revenues of $5.55 billion increased 14% year over year on a reported basis and 15% at constant currency. The figure beat the consensus estimate by a slight margin. Premium subscribers reached 300 million, exceeding management’s guidance by one million.
SPOT's User Growth Reaches New HighsMonthly active users, or MAUs, increased 12% year over year and 2% sequentially to 777 million. Spotify added 16 million MAUs during the quarter, one million below its guidance. Growth was recorded across all regions, with notable strength in Europe and North America.
Premium subscribers rose 9% year over year and 2% from the prior quarter. Net additions totaled seven million, exceeding the company’s forecast by one million. Ad-supported MAUs advanced 14% year over year to 494 million, reflecting continued expansion of Spotify’s global audience.
Spotify's Premium Revenues Gain MomentumPremium revenues increased 15% year over year to €4.33 billion. On a constant-currency basis, revenues grew 16%, supported by subscriber gains and higher pricing. Premium average revenue per user increased 7% to €4.89, or 7.4% excluding currency effects.
The benefits of price increases were partly offset by product and geographic mix. Management also highlighted improving engagement, with active days among global subscribers increasing. The company continues to add value through services such as Reserved concert-ticket access, personalized podcasts and additional audiobook offerings.
SPOT's Margins Expand Despite SpendingGross profit increased 21% year over year to €1.60 billion. Gross margin expanded 193 basis points to a record 33.4%, topping management’s forecast of 33.1%. Premium gross margin reached 34.9%, helped by revenue growth outpacing music costs, net of marketplace programs, audiobook expenses and video-podcast costs.
Operating expenses increased 3% to €941 million. Excluding currency movements and social charges, expenses rose 19%, mainly because of temporary investments in marketing, cloud infrastructure and AI initiatives. Operating income climbed 61% to €655 million, while operating margin expanded to 13.7% from 9.7%.
Spotify's Ad Business Starts to StabilizeAd-supported revenues increased 1% year over year to €446 million, or 3% at constant currency. Growth in music-advertising impressions was partially offset by softer pricing. Podcast advertising benefited from sponsorship gains across Spotify’s owned and licensed portfolio.
Automated sales channels represented nearly 40% of ad-supported revenues, up from slightly more than 30% in the first quarter. Active advertisers increased 60% year over year. Management completed its price-optimization work and migrated ad inventory to an in-house ad server, supporting its expectation for double-digit advertising growth in the second half of 2026.
SPOT's Cash Flow Supports BuybacksFree cash flow increased 14% year over year to €797 million, marking a record second-quarter performance. The improvement reflected higher net income adjusted for noncash items, partly offset by working-capital movements. Trailing 12-month free cash flow reached €3.3 billion.
Spotify ended the quarter with €9.4 billion in cash, restricted cash and short-term investments. The company repurchased $662 million of shares through Aug. 3, 30% more than during the comparable 2025 period. It has bought back nearly 2.2 million shares since resuming repurchases in 2025.
Spotify Guides for Continued Q3 GrowthFor the third quarter of 2026, Spotify expects MAUs of 788 million, implying 11 million sequential additions. The outlook incorporates product optimization in emerging markets that is intended to improve free-to-paid conversion. Premium subscribers are projected to reach 305 million, representing five million net additions.
Revenues are forecast at approximately €5 billion, indicating 17% year-over-year growth. Spotify expects a gross margin of 32.9% and operating income of €670 million. Management continues to anticipate about €200 million of incremental marketing and AI-related operating expenses in 2026, while expecting full-year gross and operating margins to improve.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -12.06% due to these changes.
VGM ScoresCurrently, Spotify has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
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.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Spotify has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSpotify belongs to the Zacks Internet - Software industry. Another stock from the same industry, Palantir Technologies Inc. (PLTR - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Palantir Technologies reported revenues of $1.94 billion in the last reported quarter, representing a year-over-year change of +92.8%. EPS of $0.41 for the same period compares with $0.16 a year ago.
Palantir Technologies is expected to post earnings of $0.41 per share for the current quarter, representing a year-over-year change of +95.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Palantir Technologies. Also, the stock has a VGM Score of D.
Chubb zvýšil pojistný underwritingový zisk o 18,8 % na 1,94 miliardy USD a zlepšil combined ratio na 83,8 %. Čistý investiční výnos dosáhl rekordních 1,88 miliardy USD.
Key Takeaways Chubb's P&C underwriting income rose 18.8% to $1.94 billion, while its combined ratio improved to 83.8%.CB's adjusted net investment income reached a record $1.88 billion, up 11.4% year over year.Chubb returned $1.37 billion to shareholders in Q2, bringing first-half capital returns to $2.90 billion. Shares of Chubb Limited (CB - Free Report) are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 1.62X is higher than the industry average of 1.43X. However, it currently carries a Value Score of B.
The premium valuation reflects investors' confidence in Chubb's strong profitability, underwriting discipline and growth prospects. However, the higher multiple raises the question of whether the company's fundamentals are strong enough to justify the premium.
Image Source: Zacks Investment Research
Shares of some of its peers, like The Travelers Companies, Inc. (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and The Progressive Corporation (PGR - Free Report) , are trading at a multiple higher than the industry average.
CB’s Strong Return on EquityReturn on equity (ROE) for the trailing 12 months was 14.5%, significantly above the industry's 7.5%. Core operating return on tangible equity was 21.2% in the second quarter of 2026. Moreover, ROE has remained around 14% over the past three and five years, reflecting the company's consistent ability to generate returns from shareholders' funds.
CB Is an OutperformerChubb shares have gained 21.3% in the past year, outperforming the industry’s growth of 0.8%.
Shares of other insurers, including TRV, have gained 31.1%, while PGR and WRB have lost 11.1% and 6.5%, respectively, in the past year.
1-Year Price Performance: CB, TRV, WRB, PGR & Industry
Image Source: Zacks Investment Research
CB’s Growth Projection EncouragesThe Zacks Consensus Estimate for Chubb’s 2026 earnings per share (EPS) indicates a year-over-year increase of 10.3%. The consensus estimate for revenues is pegged at $64.34 billion, implying a year-over-year improvement of 7.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 5.6% and 4.1%, respectively, from the corresponding 2026 estimates. The expected long-term earnings growth is pegged at 7.7%.
Optimist Analyst Sentiment on CBThe company has witnessed 13 upward earnings estimate revisions for 2026 over the past 60 days, against no movement in the opposite direction. For 2027, it has witnessed five upward revisions against one downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings have moved up 2.7% and 0.2%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Factors That Benefit CB StockChubb's underwriting operations remain a major earnings driver. The company prioritizes profitability over premium growth by exiting inadequately priced business, particularly in large-account property insurance. P&C underwriting income increased 18.8% year over year to $1.94 billion in the second quarter of 2026, while the combined ratio improved to 83.8% from 85.6% in the prior-year quarter, reflecting strong underwriting profitability.
Chubb continues to benefit from broad-based premium growth across its businesses, supported by strong performance in its middle-market and international commercial businesses. Middle-market and small commercial premiums increased 8.9% in the second quarter, while overseas commercial insurance premiums rose 8.8%.
CB pursues strategic mergers and acquisitions to diversify its portfolio, add capabilities and synergies, and expand its geographic footprint. Acquisitions, including Catalyst Aviation Insurance and Liberty Mutual's operations in Thailand and Vietnam, have strengthened its product offerings, distribution network and presence in key international markets. Continued investments in AI, digital capabilities and distribution, along with strong broker relationships, are driving new business growth and improve renewal rates.
Higher investment income, supported by the company's fixed-income and alternative asset portfolios, provides an additional source of earnings growth alongside underwriting operations. Adjusted net investment income reached a record $1.88 billion in the second quarter of 2026, up 11.4% year over year.
Chubb's strong cash generation supports shareholder returns and continued capital deployment. The company returned $1.37 billion to shareholders in the second quarter of 2026 through dividends and share repurchases, bringing total capital returned in the first six months to $2.90 billion.
Chubb continues to generate strong growth in book value. As of 30 June 2026, tangible book value per share rose 17.1% to $131.93. The continued growth in book value and tangible book value reflects the company's strong earnings generation and supports the case for its valuation.
Risks for CBChubb remains exposed to catastrophe losses from hurricanes, wildfires, earthquakes and other severe events, which induce volatility in underwriting profitability and affect the combined ratio. Pretax catastrophe losses totaled $475 million in the second quarter of 2026.
Softening commercial insurance pricing remains a headwind for Chubb, as continued rate declines could weigh on premium growth and profitability.
ConclusionChubb is positioned to deliver continued earnings and book-value growth through strong underwriting profitability, middle-market and overseas commercial expansion, higher investment income and disciplined capital management. Favorable estimates, optimistic analyst sentiment and higher ROE are other positives. A VGM Score of A instils confidence.
While the premium valuation appears justified by Chubb's profitability and growth profile, continued earnings growth and underwriting discipline will be important to sustain the higher multiple. Catastrophe losses and softer commercial pricing remain risks. It is wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for Suncor Energy (SU - Free Report) . Shares have added about 8.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Suncor Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Suncor Energy Q2 Earnings & Revenues Beat Estimates, Rise Y/YSuncor Energy reported second-quarter 2026 adjusted operating earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.14 by 8.9%. Moreover, the bottom line increased significantly from the year-ago quarter’s reported figure of 51 cents. The outperformance was driven by stronger downstream margins, higher upstream price realizations and increased refined product sales volumes.
The Calgary, Alberta-based integrated oil and gas company’s operating revenues of $12.7 billion beat the Zacks Consensus Estimate of $10.3 billion by 22.4%. The top line also increased approximately 47.3% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads.
Suncor Energy’s board of directors declared a quarterly dividend of 60 Canadian cents per share for its common shareholders of record as of Sept. 4, 2026. The payout, which remains unchanged from the previous quarter, will be made on Sept. 25.
During the quarter, the company distributed a total of C$1.8 billion to its shareholders, including over C$1 billion in share repurchases and over C$700 million in dividends. It generated C$5.3 billion in adjusted funds from operations and C$4 billion in free cash flow.
During the second quarter, Suncor Energy delivered upstream production of 760,900 barrels per day (bbls/d), down from 808,100 bbls/d in the year-ago quarter. However, refining throughput reached a second-quarter record of 470,600 bbls/d, compared with 442,300 bbls/d a year earlier, while refined product sales rose to 654,800 bbls/d from 600,500 bbls/d in the prior-year period.
Segmental PerformanceUpstream: The company recorded a total production of 760,900 bbls/d, down from 808,100 bbls/d in the year-ago quarter. However, the figure beat the consensus estimate of 755,000 bbls/d.
Total Oil Sands production was 690,100 bbls/d, down from 748,400 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 815,200 bbls/d, compared with 860,800 bbls/d in the prior-year period. This decrease was caused by the planned turnaround at Firebag.
Net synthetic crude oil and diesel production increased to 482,200 bbls/d from 438,200 bbls/d a year earlier, driven by fewer maintenance activities in the current quarter. Non-upgraded bitumen production decreased to 207,900 bbls/d from 310,200 bbls/d, primarily due to increased upgrader availability and decreased bitumen production.
Oil Sands adjusted operating earnings were C$2.6 billion, up from C$926 million in the prior-year quarter, backed by increased price realizations.
Exploration and Production (E&P) production rose to 70,800 bbls/d from 59,700 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$465 million from C$165 million, primarily driven by higher sales volumes and stronger price realizations.
Downstream: The segment was the key driver of the quarter’s strength. Refining and Marketing adjusted operating earnings surged to C$2.1 billion from C$404 million in the prior-year quarter, primarily fueled by higher benchmark crack spreads, a FIFO inventory valuation gain and increased refinery production and sales volumes. Refinery utilization was 92%, up from 87% in the prior-year quarter, reflecting Suncor Energy’s increased refining network nameplate capacity of 511,000 bbls/d.
Refined product sales climbed to 654,800 bbls/d, a 9% increase from 600,500 bbls/d in the prior-year quarter, supported by global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels. Moreover, the figure beat the consensus estimate of 596,000 bbls/d.
Financial PositionTotal expenses increased 20% to C$12.6 billion from the prior-year quarter. The cost of purchases of crude oil and products increased to C$6.4 billion in the second quarter of 2026, compared with C$5.1 billion in the prior-year quarter. Operating, selling and general expenses increased 8.1% to C$3.4 billion from the prior-year quarter, and Exploration expenses increased to C$17 million compared with C$4 million in the previous-year quarter.
Suncor Energy generated C$5.3 billion in adjusted funds from operations, up from C$2.7 billion in the prior-year quarter. Free funds flow increased to almost C$4 billion from C$981 million. The company returned nearly C$1.8 billion to its shareholders, including C$1 billion in share repurchases and over C$700 million in dividends.
Capital expenditures totaled C$1.3 billion, decreasing from the year-ago quarter of C$1.6 billion. As of June 30, 2026, Suncor Energy had cash and cash equivalents of C$5.4 billion and long-term debt of C$9.2 billion. Its debt-to-capitalization was 16%.
Guidance and Shareholder ReturnsSuncor Energy’s 2026 corporate guidance targets total production of 840,000-870,000 bbl/d, including 785,000-810,000 bbl/d from Oil Sands and 55,000-60,000 bbl/d from Exploration and Production. Refinery throughput is expected at 460,000-475,000 bbl/d, with utilization of 90%-93% and refined product sales of 600,000-620,000 bbl/d. Capital expenditures are guided at C$5.6-C$5.8 billion, led by C$3.8-C$3.9 billion for Oil Sands. Cash operating costs are expected at C$26-C$29/bbl for Oil Sands operations, C$33-C$36/bbl at Fort Hills and C$34-C$37/bbl at Syncrude. The guidance assumes Brent at $87/bbl and WTI at $80/bbl, while the company highlights operational reliability, maintenance execution, commodity prices and infrastructure as key factors that could affect results.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 39.17% due to these changes.
VGM ScoresCurrently, Suncor Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Suncor Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSuncor Energy is part of the Zacks Oil and Gas - Integrated - Canadian industry. Over the past month, Cenovus Energy (CVE - Free Report) , a stock from the same industry, has gained 18.3%. The company reported its results for the quarter ended June 2026 more than a month ago.
Cenovus reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +41.4%. EPS of $1.11 for the same period compares with $0.33 a year ago.
Cenovus is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +59.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Cenovus has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Devon Energy za poslední měsíc přidala asi 16,5 % po silných výsledcích za 2Q, kdy upravený zisk i tržby překonaly odhady. Firma zároveň zvýšila čtvrtletní fixní dividendu o 33 % na 32 centů na akcii.
It has been about a month since the last earnings report for Devon Energy (DVN - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Devon Energy due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Devon Energy Corporation before we dive into how investors and analysts have reacted as of late.
Devon Q2 Earnings Surpass Estimates on Strong Oil Output and Pricing
Devon Energy Corporation reported second-quarter 2026 adjusted earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.30 by 20.77%.
GAAP earnings were $2.03 per share, up 44% from $1.41 a year ago.
Total RevenuesRevenues of $7.41 billion surpassed the consensus estimate of $6.29 billion by 17.81% and increased 73.1% year over year. Strong oil pricing and contributions from the Coterra Energy merger supported the results.
Oil, gas and natural gas liquids sales totaled $5.11 billion compared with $2.71 billion in the year-ago quarter. Marketing and midstream revenues increased to $1.90 billion from $1.34 billion.
Oil, gas and NGL derivatives generated revenues of $414 million compared with $236 million a year earlier. The latest figure included $530 million of positive derivative valuation changes, partly offset by $116 million of cash settlement losses.
Devon’s Production PerformanceTotal production averaged 1,359 thousand barrels of oil equivalent per day (MBoe/d), up 61.6% year over year from 841,000 Boe/d. Devon completed its merger with Coterra on May 7, meaning the quarterly figures included combined operations for part of the period. The production level was 1.6% higher than the midpoint of management’s guidance.
Oil production rose 30% year over year to 503,000 barrels per day. NGL output climbed 41.4% to 314,000 barrels per day, while natural gas production increased to 3,252 million cubic feet per day from 1,388 million cubic feet. Better-than-expected well performance in the Delaware Basin supported oil and gas volumes.
DVN Benefits From Strong Oil RealizationsRealized oil prices, including cash settlements, were up 39.9% year over year to $88.09 per barrel from $62.97 in the prior-year quarter. Excluding hedges, oil realizations were $95.10 per barrel.
Realized NGL prices increased to $22.70 per barrel from $17.82. However, realized natural gas prices, including cash settlements, declined to $1.05 per thousand cubic feet from $1.56. Regional Waha pricing was pressured by infrastructure constraints in the Delaware Basin.
Devon Keeps Capital Spending DisciplinedCapital expenditures were $1.27 billion, 2% below the midpoint of management’s guidance. The company placed 120 net operated wells online during the quarter, with an average lateral length of 10,800 feet.
The Permian accounted for $731 million of capital spending, followed by $196 million in the Rockies. Eagle Ford, Anadarko and Marcellus expenditures were $97 million, $129 million and $70 million, respectively. Devon acquired 16,300 net Delaware Basin acres for $2.6 billion, adding approximately 400 top-tier locations.
DVN Generates Robust Free Cash FlowNet cash from operating activities was $3.67 billion compared with $1.55 billion a year ago. Adjusted operating cash flow was $2.9 billion, while adjusted free cash flow totaled roughly $1.7 billion, excluding after-tax restructuring costs.
Devon returned $1.06 billion through dividends, share repurchases and debt retirement. It repurchased 4.3 million shares for $197 million and paid $366 million in dividends. The quarterly fixed dividend was raised 33% to 32 cents per share.
Devon Provides GuidanceFor the third quarter of 2026, total production is expected between 1,660 MBoe/d and 1,690 MBoe/d. Oil production is projected in the range of 550,000-560,000 barrels per day. Third-quarter capital expenditures are anticipated between $1.4 billion and $1.5 billion.
Devon maintained its full-year guidance, calling for total production of 1,364 MBoe/d to 1,398 MBoe/d and capital spending of $4.8-$5 billion. 2026 Oil production is expected to be in the range of 495,000-505,000 barrels per day. Natural gas production for 2026 is expected to be in the range of 3,300-3,400 million cubic feet per day.
Management remains on track to achieve at least $1 billion in annual pre-tax merger synergies on a run-rate basis by the end of 2027.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 9.24% due to these changes.
VGM ScoresCurrently, Devon Energy has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerDevon Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Range Resources (RRC - Free Report) , has gained 11.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Range Resources reported revenues of $795.3 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $0.79 for the same period compares with $0.66 a year ago.
Range Resources is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of +17.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Range Resources. Also, the stock has a VGM Score of B.
Expeditors International za poslední měsíc přidala 2,6 % po silných hospodářských výsledcích za 2. čtvrtletí 2026, kdy zisk na akcii stoupl na 2,03 USD a tržby na 3,50 miliardy USD.
It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Expeditors International 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.
EXPD Tops Q2 Earnings & Revenue EstimatesExpeditors International of Washington reported second-quarter 2026 earnings of $2.03 per share, up 51.5% year over year and 20.8% above the Zacks Consensus Estimate of $1.68. Revenues increased 32.1% to $3.50 billion, surpassing the consensus mark of $2.90 billion by 20.7%.
Results benefited from broad-based growth across most products, led by airfreight and customs-related services. Airfreight tonnage advanced 14% year over year, while ocean container volume was flat.
EXPD Gains From Strong Airfreight DemandAirfreight services revenues surged 57.1% year over year to $1.49 billion. The increase reflected higher volumes and elevated buy and sell rates as demand for air capacity exceeded available space, particularly late in the quarter.
Tonnage increased 16% sequentially, supported by Asia-U.S. and Asia-Europe trade lanes. Management also cited sustained demand from artificial intelligence hyperscalers, including customers requiring upper-deck freighter capacity for servers.
Expeditors Sees Better Ocean Freight TrendsOcean freight and ocean services revenues rose 5.2% to $710.9 million. Although quarterly container volume was unchanged from the prior-year period, volumes improved 7% from the first quarter of 2026.
Management noted that carriers carefully managed capacity amid market disruptions, supporting higher rates late in the quarter. Stronger demand and improved pricing also increased profitability per container, signaling some stabilization after an extended ocean-market downturn.
EXPD Benefits From Customs ComplexityCustoms brokerage and other services revenues climbed 26.6% to $1.30 billion. Customs, Transcon, Distribution and Order Management each delivered double-digit revenue growth for the second consecutive quarter.
Demand from AI hyperscalers and other high-value technology customers supported the increase. Tariff-related complexity, new customer wins and higher declarations from existing customers also lifted customs activity. A temporary surge in filings tied to the International Emergency Economic Powers Act contributed to higher pricing.
Expeditors Expands Profitability Despite CostsOperating income increased 41.1% year over year to $349.6 million. The operating margin improved to approximately 10% from 9.3% in the year-ago quarter, reflecting strong revenue growth and productivity gains.
Salaries and other operating expenses increased 13.1% to $735.9 million. The quarter included a $25 million pretax restructuring charge related to the Global Technology team, partly offset by a $16 million gain from the sale of an underutilized property.
EXPD Targets Lower Technology OverheadThe Global Technology restructuring is expected to reduce the company’s annual cost structure by approximately $50 million. Management said the savings equal nearly 10% of total corporate overhead expenses and should begin to benefit results after the restructuring actions are completed.
Expeditors plans to continue investing in artificial intelligence, technology talent and modernization initiatives. Operating efficiency reached 32.2% during the quarter despite the restructuring charge, while headcount remained essentially flat sequentially before the planned workforce reductions.
Expeditors Posts Broad Regional GrowthOperating income increased across most geographic regions. U.S. operating income rose 35.5% to $169.5 million, while South Asia operating income nearly doubled to $49.3 million.
Europe operating income climbed 34.9% to $33.8 million. The Middle East, Africa and India region generated operating income of $20.6 million, up sharply from $7.3 million a year earlier, despite geopolitical disruptions affecting freight capacity and routing.
EXPD Maintains Strong Shareholder ReturnsNet cash from operating activities totaled $178.6 million, nearly matching the $179.2 million generated in the prior-year quarter. Accounts receivable increased significantly as business activity and revenues expanded.
The company repurchased 2.3 million shares during the quarter at an average price of $151.50, spending $354.9 million. Including dividends, Expeditors returned $461 million to its shareholders in the quarter and $748 million during the first half of 2026.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 18.88% due to these changes.
VGM ScoresAt this time, Expeditors International has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Expeditors International has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Lucid Group po posledních výsledcích oslabil o 29,7 %. Ve 2. čtvrtletí vykázal ztrátu 3,30 USD na akcii, zatímco tržby vzrostly o 56,2 % na 405 milionů USD.
It has been about a month since the last earnings report for Lucid Group (LCID - Free Report) . Shares have lost about 29.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Lucid Group due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Lucid Group, Inc. before we dive into how investors and analysts have reacted as of late.
LCID Q2 Earnings MissLucid reported a second-quarter 2026 loss of $3.30 per share, wider than the year-ago loss of $2.80 as well as the Zacks Consensus Estimate of a loss of $2.72.
Revenues surged 56.2% year over year to $405 million and beat the consensus estimate of $323 million by 25.4%. Higher vehicle deliveries, improved product mix and increased regulatory credit sales supported the top line.
Deliveries and Product Mix Lift SalesLucid produced 4,774 vehicles during the quarter, up 24% year over year. Production declined 13% sequentially as management deliberately reduced output to align manufacturing with near-term demand and limit further inventory growth.
Deliveries rose to 3,953 vehicles, up 19% year over year and 28% sequentially. Lucid Gravity accounted for the majority of volumes. Revenues also benefited from a 3.7% sequential increase in average selling price and a $25 million increase in regulatory credit sales. Deliveries in the Middle East improved during the quarter.
Gross Margin Stays Deeply NegativeGross margin was negative 105%, compared with negative 110% in the first quarter and negative 105% a year ago. Lower production reduced fixed-cost absorption and raised conversion costs per vehicle, offsetting the benefits of higher revenues and improved pricing.
Results included roughly $300 million of inventory impairment charges, which reduced gross margin by 74 percentage points. The charge reflected a reassessment of inventory carrying values and expected demand. Lucid also reduced firm purchase commitments to lower future inventory obligations and cash requirements.
LCID Targets $1.4B in Cash Flow ImprovementsAdjusted EBITDA loss widened to $901.1 million from $632.1 million in the year-ago quarter. Operating expenses included $321.3 million of research and development costs, $300.4 million of selling, general and administrative expenses and $33.7 million of workforce-reduction charges.
Management identified $1.4 billion of cash flow improvements for 2026. The plan includes projected inventory savings of $600-$800 million, capital expenditure reductions of about $500 million and operating expense savings of roughly $200 million. Lucid’s U.S. workforce reduction and elimination of the second shift at its Arizona factory are expected to generate $158 million in annualized savings.
Lucid Advances Robotaxi and AMP-2 ProgramsLucid’s robotaxi program with Uber and Nuro moved deeper into testing and validation. The engineering fleet includes nearly 100 vehicles operating across the San Francisco Bay Area and Houston. Production-validation Gravity vehicles have begun reaching partners, with regular production expected in the fourth quarter and service launch targeted for late 2026.
The AMP-2 factory in Saudi Arabia has shifted from construction to industrialization. Manufacturing systems for stamping, body, paint and final assembly are being installed and tested. Lucid expects the facility to be ready for production in early 2027 and for midsize production in the second half of that year.
Balance Sheet and Liquidity PositionLucid ended the June quarter with $3 billion of total liquidity, including about $800 million of cash and investments and $2.2 billion of available borrowing capacity.
Free cash flow was negative $1.48 billion, compared with negative $1.01 billion a year earlier. Net cash used in operating activities totaled $1.22 billion, while capital expenditures were $253.8 million. Inventory increased to $1.38 billion from $1.11 billion at the end of 2025.
LCID Withholds GuidanceLucid did not provide quantitative financial guidance. Management expects third- and fourth-quarter production to remain below second-quarter levels as AMP-1 operates with one shift through year-end.
Deliveries are expected to exceed production during the second half as Lucid works down finished-vehicle inventory. Management anticipates sequential delivery growth consistent with normal seasonality, though at a more moderate pace than in the prior year. The company expects its current liquidity and operational measures to provide runway well into 2027.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted 5.97% due to these changes.
VGM ScoresCurrently, Lucid Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, Lucid Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerLucid Group is part of the Zacks Automotive - Domestic industry. Over the past month, Tesla (TSLA - Free Report) , a stock from the same industry, has gained 11%. The company reported its results for the quarter ended June 2026 more than a month ago.
Tesla reported revenues of $28.24 billion in the last reported quarter, representing a year-over-year change of +25.5%. EPS of $0.33 for the same period compares with $0.40 a year ago.
Tesla is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
Tesla has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
It has been about a month since the last earnings report for Upstart Holdings, Inc. (UPST - Free Report) . Shares have lost about 6.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Upstart due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Upstart Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Upstart Q2 Revenues Climb as Profitability ImprovesKey Highlights• Revenues: $364.7 million in second-quarter 2026, up 42% year over year.
• EPS: 16 cents, up 220% year over year from 5 cents in the prior-year quarter.
• Revenues from fees: $348 million, up 45% year over year, with platform/referral fees of $284.1 million, servicing/other fees of $54.8 million and loan sales fees of $9.1 million.
• GAAP net income: $16.5 million, up 195% year over year from $5.6 million in the prior-year quarter. Net income margin was 5% versus 2% a year earlier.
• Contribution profit: $193.1 million, up 37% year over year; contribution margin 55% compared to 58% in the prior-year quarter.
• Adjusted EBITDA: $76.9 million, up 45% year over year; adjusted EBITDA margin of 21% in second-quarter 2026.
• Originations: $4.2 billion, up 50% year over year; 558,014 loans originated, up 50% year over year.
Scale, Mix & Execution Drive Q2 ResultsTop-line growth was driven by higher marketplace originations, stronger fee revenues and continued expansion beyond core unsecured lending. Total originations rose to $4.2 billion, while fee-based revenues reached $348 million, as platform/referral fees, servicing/other fees and newly separated loan sales fees all contributed to the second quarter.
Profitability improved despite higher operating costs. GAAP net income increased to $16.54 million, adjusted EBITDA reached $76.9 million and adjusted EBITDA margin was 21%. Contribution profit reached an all-time high of $193.1 million, though contribution margin declined to 55% from 58% a year ago as product mix continued to include faster-growing secured products with lower current margins.
Unsecured Lending Remains the Core EngineUnsecured Lending, which includes personal loans, small-dollar loans and Cash Line, remained the largest contributor in the second quarter. Fee revenue rose 38% year over year to $326.3 million, while originations increased 38% year over year to $3.64 billion. Loan count reached 535,191 in the reported quarter.
Contribution profit in Unsecured Lending was $200.8 million compared with $147.3 million in prior-year quarter. Contribution margin was 62%, flat year over year and up six percentage points sequentially, supported by a larger mix of higher-margin core personal loans, lower customer acquisition costs as a percentage of originations and an expected seasonal pickup in demand.
Secured Products Continue to ScaleSecured products continued to grow rapidly, with fee revenue rising 465% year over year to $22 million. Secured originations reached $589 million, including $426 million from auto and $163 million from home products. Auto originations increased 264% year over year, while home originations rose 139%.
Margins in secured products remained negative but improved materially. Contribution margin was negative 35% compared with negative 176% in the prior-year quarter and negative 96% in the first quarter of 2026. Management attributed the improvement to better take rates, operational efficiencies, automation, funnel optimization and lower HELOC origination costs, which fell 15% sequentially.
Expenses Rise as Operating Leverage EmergesTotal operating expenses were $350.1 million, up 39% year over year and 11% sequentially. Management expects fixed expenses to grow at a low-single-digit sequential pace in the third and fourth quarters of 2026.
Funding & Balance Sheet TrendsUpstart ended the quarter with $456 million in cash and cash equivalents and $526.3 million in restricted cash. Loans at fair value totaled $1.06 billion, while beneficial interest assets were $545.9 million.
The balance sheet continued to reflect a capital-light marketplace model. Loans held on Upstart’s balance sheet accounted for just 5.9% of total outstanding loans, the lowest level in nearly two years.
Management Commentary & OutlookManagement maintained full-year 2026 guidance for total revenues of approximately $1.4 billion, fee revenues of about $1.3 billion and adjusted EBITDA of $294 million, implying a 21% margin.
Management highlighted progress in reaccelerating core personal loans, improving the profitability of Home and Auto, maintaining capital efficiency and driving a rebound in overall profitability. The company also received OCC conditional approval for its national bank charter in July 2026, with additional regulatory approvals and operational work; management’s targeted launch is in early 2027.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted -20.69% due to these changes.
VGM ScoresAt this time, Upstart has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Upstart has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerUpstart is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Moody's (MCO - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Moody's reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $4.68 for the same period compares with $3.56 a year ago.
Moody's is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moody's. Also, the stock has a VGM Score of C.
Na Wix.com byla podána hromadná žaloba kvůli údajným klamavým tvrzením o výkonnosti a nákladech na AI produkty. Žaloba tvrdí, že firma nadhodnotila jejich obchodní i finanční přínos.
NEW YORK, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Wix.com Ltd. (NASDAQ: WIX) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Wix securities between February 19, 2025 and May 12, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/WIX.
Wix Case Details
According to the Complaint, the Company made false and misleading statements to the market. Specifically, Defendants failed to disclose that:
(1) Wix had overstated the competitiveness and performance of its AI product offerings relative to competing products;
(2) the Company had understated the costs associated with developing and promoting its AI product offerings;
(3) as a result, Defendants overstated the commercial and financial benefits of Wix's AI product offerings; and
(4) accordingly, Defendants' public statements were materially false and misleading at all relevant times.
What's Next for Wix Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/WIX. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Wix you have until September 22, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Wix Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Wix Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Peretz Bronstein, Esq. or Nathan Miller
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Prior results do not guarantee similar outcomes.
Applied Materials čeká v roce 2026 růst tržeb z advanced packaging o více než 70 % a tržeb z DRAM, včetně HBM packaging, o 52 % meziročně ve fiskálním 3. čtvrtletí. Firma zároveň plánuje do roku 2028 zdvojnásobit čtvrtletní výrobu systémů.
Key Takeaways AMAT is positioned for AI-led WFE growth as advanced logic, DRAM and packaging drive 2026-27 demand.AMAT expects advanced packaging revenues to grow over 70% in 2026, with DRAM revenues up 52%.AMAT plans to double quarterly system output by 2028 as leading-edge fabs operate at full capacity. Applied Materials (AMAT - Free Report) is well positioned to capitalize on AI-driven semiconductor demand as leading-edge foundry-logic, DRAM and advanced packaging are expected to account for around 80% of wafer fab equipment (WFE) growth in 2026 and 2027. AMAT’s leadership in these areas, particularly HBM and 3D chiplet stacking, strengthens its exposure to rising AI computing requirements and fab capacity investments globally.
AMAT introduced six new chipmaking systems in the latest quarter, spanning DRAM and advanced packaging. Enhanced Centura Prime Epi targets faster, more power-efficient DRAM and HBM, while Producer Avila 2 supports higher-layer-count HBM. AMAT also introduced Opta Quad CMP, Nokota VMax 2 ECD and new eBeam systems addressing demanding packaging, plating, metrology and defect-analysis requirements for advanced architectures and yield optimization across fabs.
As the opportunity broadens beyond equipment sales, chipmakers race to increase output and yield, benefiting wafer fabrication equipment manufacturers like AMAT. Applied Materials expects advanced packaging revenues to grow more than 70% in 2026, while DRAM revenues, including HBM packaging, rose 52% year over year in the fiscal third quarter. Process diagnostics and control revenues are also expected to increase more than 50% this year overall through 2026.
Strong customer visibility further supports AMAT’s growth outlook. Most leading-edge logic and DRAM fabs are operating at full capacity, customers announced more than 10 new fab projects during the third quarter of fiscal 2026, and some forecasts extend to 2030. AMAT plans to double quarterly system output by 2028. Applied Materials’ fiscal fourth-quarter revenue guidance of $10.25 billion also signals accelerating momentum into 2027.
How Competitors Fare Against AMATAMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like KLA Corporation (KLAC - Free Report) and Lam Research (LRCX - Free Report) at bay.
KLA Corporation remains a dominant player in process control, wafer inspection and yield management solutions, while Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing.
The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power, helping it adapt amid the continuous competitive pressure of KLA Corporation and Lam Research.
AMAT’s Price Performance, Valuation and EstimatesApplied Materials shares have climbed 70.6% year to date, outperforming the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry’s appreciation of 16% and 24.2%, respectively.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
The rise in stock price has made AMAT stock trade at a premium. Currently, AMAT has a price-to-sales (P/S) multiple of 7.98X, which is much above the industry’s P/S of 4.88X. AMAT’s value score of D also suggests its overvaluation.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Applied Materials expects non-GAAP earnings of $4.02 per share (+/- 20 cents), indicating 85% year-over-year growth at the midpoint. The Zacks Consensus Estimate suggests year-over-year growth of 86.6%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Yum! Brands prodala Pizza Hut mimo pevninskou Čínu za zhruba 1,5 miliardy USD a celkem z odprodeje získá asi 2,7 miliardy USD. Firma se tím více soustředí na franchising a zpětný odkup akcií za asi 4 miliardy USD.
The fast-food industry is facing a severe reality check. Menu price hikes are pricing out the core lower-income demographic, causing a decline in foot traffic across the sector. Yet amid this crisis, one operator just executed a masterclass in corporate defense.
Yum! Brands Today
$152.23 +0.96 (+0.63%)
As of 01:53 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$137.33▼
$170.141.97%
19.17
$174.65
Yum! Brands NYSE: YUM successfully offloaded its underperforming Pizza Hut asset outside Mainland China for about $1.5 billion.
By allowing a private equity buyer to absorb the legacy brand's looming turnaround risk, Yum! Brands quietly transitions into a high-return, pure-play franchising model.
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With Yum! Brands shielding its remaining portfolio behind an approximately $4 billion stock buyback, investors are witnessing a strategic pivot deployed right at the onset of brutal macro headwinds.
Shedding the stagnant pizza chain fundamentally changes the business's financial trajectory, setting the stage for a shift in how Wall Street values Yum! Brands stock.
Addition by Subtraction: Cutting the CrustCorporate restructuring often looks messy on the surface, but the financial mechanics underneath reveal a clear path to value creation. The sale of the Pizza Hut brand to LongRange Capital serves as a textbook example of addition by subtraction. Factoring in the separate Mainland China transaction, the total Pizza Hut carve-out proceeds reach approximately $2.7 billion.
For years, Pizza Hut operated as a chronic drag on system-wide metrics, actively suppressing the growth generated by Taco Bell and KFC. Public markets historically penalize parent companies burdened by capital-intensive turnaround projects.
Investors saw this reflected in the numbers, with the return on equity for Yum! Brands recently dipping to -24.57%. That figure signals severe capital inefficiency prior to the asset sale. By transferring the operational weight of Pizza Hut to private equity, Yum! Brands protects its consolidated margin profile. Private equity buyers can pursue extensive operational restructuring without the immediate pressures of quarterly public-market reporting.
For Yum! Brands, removing this drag clears the path for a re-rating of its stock. The business is now heavily concentrated in higher-margin, faster-growing assets. Its streamlined franchising model will require less overhead, allowing management to deploy capital much more aggressively toward concepts that actually drive unit growth.
Starving the Crisis: Insulating Taco Bell and KFCInvestors should connect the macro environment to the catalyst to understand why this sale is so critical right now. The broader quick-service restaurant space is experiencing significant demand reduction. Fast-food operators long believed their business models were recession-resistant, leaning on aggressive pricing power to offset inflation. That strategy has hit a wall. Anecdotal channel checks reveal localized traffic drops, with some Taco Bell locations reporting foot traffic down by about half in late summer.
Coinciding with the ownership change, Pizza Hut chief executive officer Aaron Powell abruptly resigned, leaving Eduardo Luz to serve as interim chief executive. While executive transitions regularly accompany private equity buyouts, a sudden departure at a flagship property highlights the internal volatility and execution risk that legacy chains face. The consumer base is retreating. Short interest in Yum! Brands rose over 14% by mid-August as retail skepticism grew.
However, the retail panic misses the genius of the timing. Management pegged the demand trends early. Selling the pizza chain right as traffic falls off a cliff helps to insulate the surviving KFC and Taco Bell portfolios from the heaviest capital requirements. Yum! Brands traded an operational headache for a substantial influx of liquidity, passing the execution risk of a turnaround to LongRange Capital just as the broader consumer environment deteriorates.
Serving Up Yield: A $4B Capital DietYum! Brands' leaner operational model generates excess free cash flow, which management is routing back to shareholders. The board of directors recently authorized an approximately $4 billion share repurchase program. At current valuations, this provides the capacity to retire roughly 9.4% of outstanding equity.
93rd Percentile
Moderate Buy
14.9% Upside
Healthy
Strong
0.97 Selling Shares
7.86%
See Full Analysis
When a company shrinks its share count by nearly a tenth, it artificially boosts earnings per share, even if top-line revenue suffers. This buyback serves as a structural defense mechanism against current macro headwinds.
Income investors also gain a highly predictable asset. Yum! Brands maintains an eight-year consecutive dividend growth streak, boasting an 8.6% five-year annualized growth rate. Supported by a highly conservative payout ratio of 37%, the annual dividend provides a sustainable yield of near 2%. This capital return profile remains highly durable despite the broader industry volatility.
While retail traders and short sellers seem to be fixating on the executive departure and recent insider selling, institutional money is rotating into the stock. Recent filings show concentrated block buying by multiple institutions. These sophisticated allocations indicate a strong long-term appetite for Yum! Brands' streamlined corporate structure.
Digesting Yum! Brands New StrategyThe fast-food industry will likely face prolonged discounting wars as operators scramble to win back alienated customers. Margin compression across the sector appears inevitable as companies sacrifice pricing power for transaction volume. However, companies that proactively shed underperforming assets and aggressively shrink their equity float position themselves to survive the downturn and emerge significantly stronger.
Cautious investors may prefer to wait for a broader market pullback before taking a position, while those with a long-term horizon might consider adding Yum! Brands to their watchlists as the financial benefits of the streamlined franchising model take effect.
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Akcie společnosti Qualys po poslední výsledkové zprávě za měsíc oslabily o 6,8 %. Firma zároveň zvýšila celoroční výhled tržeb na 732–738 mil. USD a non-GAAP zisku na akcii na 7,74–7,88 USD.
A month has gone by since the last earnings report for Qualys (QLYS - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Qualys due for a breakout? 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.
Qualys Q2 Earnings Beat on Channel Strength, FY26 Guidance RaisedQualys reported second-quarter 2026 non-GAAP earnings of $1.98 per share, which rose 17.9% year over year and beat the Zacks Consensus Estimate by 11.24%. Revenues increased 11% to $182.2 million and surpassed the consensus mark of $179 million by 1.8%.
Results benefited from stronger partner-led execution and broader adoption of differentiated platform offerings. The net dollar expansion rate improved to 105% from 104% in the preceding quarter, signaling better upsell performance among existing customers.
QLYS Gains From Partner-Led GrowthThe channel accounted for 54% of total revenues, up from 49% in the year-ago quarter. Channel-partner revenues climbed 22% year over year, while direct revenues remained largely unchanged. The performance reflected Qualys’ continued emphasis on using partners to expand customer reach and support larger platform transactions.
International growth also outpaced the domestic business. Revenues outside the United States rose 15% compared with 8% growth in the United States. The geographic revenue mix remained 55% domestic and 45% international.
Qualys Broadens Its Platform Booking MixEnterprise TruRisk Management and CyberSecurity Asset Management together represented 12% of last-12-month total bookings, up from 9% a year earlier. The products also contributed 14% of new bookings versus 10% in the prior-year period.
Patch Management accounted for 9% of total bookings, up from 7%, and 16% of new bookings. TotalCloud remained at 5% of total bookings. Meanwhile, vulnerability management’s contribution declined to 49% from 54%, indicating a broader mix as customers adopted newer modules.
QLYS Advances Its AI-Native Risk StrategyQualys introduced InstaScan, powered by Agent Insta, to identify exposure findings within minutes of a vulnerability disclosure without requiring another scan. Findings can then move to Agent Val for exploit validation and immediate risk quantification.
The company also outlined autonomous remediation capabilities that select patches, controlled deployments or compensating controls based on asset risk. Management said live benchmarking reduced the exposure window from 21 days to minutes and automatically patched 60% of vulnerabilities.
Qualys Expands Security for AI WorkloadsTotalAI 2.0 extends visibility across employee AI activity, models, services, code and runtime environments. New capabilities are designed to uncover shadow AI usage and identify AI workloads operating across hybrid and multi-cloud infrastructure.
The platform also added posture-management coverage for Anthropic and OpenAI environments. It can evaluate Model Context Protocol tool exploits across more than 50 adversarial scenarios and prioritize AI-related risks through the TruRisk engine.
QLYS Sustains Strong Margin PerformanceGAAP gross profit rose 12% year over year to $151.9 million, while the gross margin expanded to 83% from 82%. GAAP operating income advanced 20% to $61.9 million, with the operating margin improving to 34% from 31%.
Non-GAAP operating income increased 16% to $81.4 million, and the related margin widened to 45% from 43%. Adjusted EBITDA grew 14% to $83.8 million, representing a margin of 46% compared with 45% a year ago.
Qualys Generates Cash and Returns CapitalThe company ended the second quarter with cash and marketable securities of $703.5 million. Operating cash flow surged 77% year over year to $59.6 million in the second quarter, representing 33% of revenues. Free cash flow totaled $55.9 million, with a margin of 31%. For the first six months of 2026, free cash flow reached $149.5 million, and the margin was 42%.
During the quarter, Qualys spent $76.8 million to repurchase 797,000 shares. The company had $229.8 million remaining under its share repurchase authorization at quarter-end.
QLYS Raises Its 2026 GuidanceManagement increased its full-year 2026 revenue guidance to $732-$738 million from $721-$727 million. The updated range implies growth of 9-10%. Non-GAAP earnings are now projected between $7.74 and $7.88 per share, up from the prior forecast of $7.44-$7.65.
For the third quarter, Qualys expects revenues of $185.5-$187.5 million, calling for 9-10% year-over-year growth. Non-GAAP earnings are projected in the range of $1.91-$1.98 per share. Management continues to expect an adjusted EBITDA margin in the mid-40% range and a free cash flow margin in the low-40% range for 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Qualys has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Qualys has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerQualys is part of the Zacks Security industry. Over the past month, Varonis Systems (VRNS - Free Report) , a stock from the same industry, has gained 7.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Varonis reported revenues of $180.02 million in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $0.04 for the same period compares with $0.03 a year ago.
For the current quarter, Varonis is expected to post earnings of $0.02 per share, indicating a change of -66.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Varonis. Also, the stock has a VGM Score of D.
Celanese po poslední výsledkové zprávě přidala asi 8,2 % a překonala S&P 500. Ve 2. čtvrtletí 2026 upravený zisk na akcii vzrostl na 2,45 USD a tržby na 2,75 miliardy USD.
A month has gone by since the last earnings report for Celanese (CE - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Celanese’s Q2 Earnings Beat Estimates on Pricing and ExecutionCelanese reported second-quarter 2026 adjusted earnings of $2.45 per share, up 71.3% from $1.43 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $2.21 by 10.9%.
Net sales rose 8.7% year over year to $2.75 billion and beat the consensus estimate of $2.65 billion by 3.7%. Strong pricing and mix, commercial execution and momentum in medical and electronics supported the results. Sequentially, sales increased 18%, reflecting a 4% volume gain and a 14% pricing increase.
Segment HighlightsEngineered Materials recorded net sales of $1.45 billion, up 9% sequentially. It beat our estimate of $1.42 billion. The segment generated an operating profit of $156 million and adjusted EBIT of $234 million. Operating profit declined from $164 million a year ago, while adjusted EBIT increased from $213 million.
The Acetyl Chain posted net sales of $1.33 billion, up 28% sequentially. It topped our estimate of $1.22 billion. The segment delivered an operating profit of $237 million, up from $153 million in the prior-year quarter. Adjusted EBIT increased to $321 million from $195 million.
FinancialsCelanese ended the second quarter with cash and cash equivalents of $1.36 billion. Long-term debt was $10.70 billion. Cash provided by operating activities totaled $209 million and free cash flow was $140 million.
OutlookCelanese expects third-quarter adjusted earnings in the range of $1.35-$1.75 per share. For 2026, the company continues to expect adjusted earnings of approximately $6 per share. Celanese also maintained its full-year free cash flow guidance of $700-$800 million.
Management expects growth initiatives and productivity, portfolio and footprint actions to support performance in 2026. These measures are also intended to create additional earnings growth opportunities in the years ahead while strengthening cash generation and supporting deleveraging.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.76% due to these changes.
VGM ScoresAt this time, Celanese has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Celanese has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
DICK'S Sporting Goods snížil výhled zisku na fiskální rok 2026 na 11–12 USD na akcii po slabším druhém čtvrtletí. Foot Locker dál tlačí na výsledky: tržby v prodejnách klesly o 3,6 %.
Key Takeaways DICK'S cut fiscal 2026 EPS guidance to $11-$12 after second-quarter earnings missed estimates.Foot Locker's 3.6% comparable sales decline reflects weaker footwear trends and softer launch performance.DICK'S posted 4.9% comparable sales growth as higher tickets and transactions lifted core results. DICK'S Sporting Goods, Inc. (DKS - Free Report) lowered its fiscal 2026 profit outlook after a softer-than-expected second quarter. Adjusted earnings of $3.53 per share missed the Zacks Consensus Estimate of $3.78, while revenues of $5.59 billion trailed the consensus mark of $5.63 billion.
The DICK'S Business still delivered 4.9% comparable sales growth, but pro forma comparable sales for the Foot Locker Business fell 3.6%. Rising promotions in athletic footwear and apparel, weaker Foot Locker product trends and higher costs drove a more cautious full-year view.
For fiscal 2026, DKS now expects adjusted earnings of $11.00-$12.00 per share, down from the prior $13.50-$14.50 range. Consolidated net sales are projected at $21.9-$22.2 billion compared with the earlier $22.1-$22.4 billion outlook.
Image Source: Zacks Investment Research
Foot Locker remains the largest pressure point. The business generated $1.74 billion in second-quarter revenues, but demand was hurt by weaker legacy footwear silhouettes, fewer product launches and softer consumer response to launches. DKS now expects Foot Locker to post an operating loss of $40-$80 million for fiscal 2026, reversing its prior expectation for $110-$150 million in operating profit. Its comparable sales outlook was reduced to a decline of 2% to flat.
Margin pressure is broadening beyond the acquired business. Consolidated adjusted gross profit was $1.9 billion, or 34.1% of sales, down 300 basis points year over year. Promotional activity, higher fuel and supply-chain costs and the Foot Locker mix weighed on profitability. Adjusted selling, general and administrative expenses rose 65% to $1.4 billion, including $477 million tied to Foot Locker, while DICK'S also invested in World Cup marketing, digital initiatives and in-store experiences.
The category backdrop remains uneven across major athletic brands. NIKE, Inc. (NKE - Free Report) reported fiscal fourth-quarter 2026 wholesale revenues up 4% year over year, while NIKE Direct revenues fell 7%. Under Armour, Inc. (UAA - Free Report) recently updated its fiscal 2027 revenue expectations amid what management described as a challenging consumer demand environment, while maintaining its full-year profitability outlook. Those mixed signals reinforce the importance of product freshness, channel discipline and full-price demand across the athletic marketplace.
The core DICK'S Business provides an offset. Its second-quarter comparable sales growth reflected higher average ticket, more transactions and broad-based gains across footwear, apparel and hardlines. Management also cited strong FIFA World Cup results and market-share gains. DKS continues to expand House of Sport and Field House locations and is investing in GameChanger and its loyalty ecosystem, even as those initiatives add near-term expense.
The bottom line is a split operating picture. The DICK'S Business is still producing positive comparable sales, but Foot Locker weakness and a more promotional market are taking a larger toll on earnings than management previously expected. DKS shares have lost 33.2% in the past six months compared with a 20.5% decline for its industry.
The stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DKS has a VGM Score of B and a Value Score of B, alongside a Growth Score of C and a Momentum Score of D. The stronger value-oriented readings do not override the Zacks Rank because the Style Scores are designed to complement the Rank. The current combination points to a weaker near-term setup despite some favorable valuation characteristics, keeping estimate trends and Foot Locker execution central to the stock's outlook.
ViaSat po poslední výsledkové zprávě za poslední měsíc odepsal asi 13,7 % a zaostal za S&P 500. Tržby ve 1. čtvrtletí klesly na 1,16 miliardy USD, ale upravený zisk na akcii činil 17 centů a překonal odhady.
A month has gone by since the last earnings report for ViaSat (VSAT - Free Report) . Shares have lost about 13.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ViaSat due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Viasat Inc. before we dive into how investors and analysts have reacted as of late.
Viasat reported mixed first-quarter fiscal 2027 results, with revenues missing the Zacks Consensus Estimate and earnings beating the consensus estimate.
The company reported a year-over-year revenue decline, reflecting ongoing headwinds in portions of its legacy commercial services portfolio and lower IP licensing revenues. However, its bottom line improved as reduced interest expense, driven by continued debt repayment, outweighed the impact of lower revenues.
Net Income
Viasat reported a net loss of $51.7 million or a loss of 38 cents per share compared with a net loss of $56.4 million or a loss of 43 cents per share in the prior-year quarter. The narrower loss was due to lower interest expense during the quarter.
Excluding non-recurring items, Viasat reported non-GAAP net income of $24.5 million or 17 cents per share compared with $23.1 million or 17 cents per share in the prior-year period. The bottom line beat the Zacks Consensus Estimate of 10 cents.
Revenues
Revenues declined to $1.16 billion from $1.17 billion. The figure missed the consensus estimate of $1.2 billion. Product revenues were $324.1 million, down from $344.7 million in the year-ago quarter. Service revenues increased to $832.4 million from $826.4 million a year ago.
Revenues from the Communication Services segment were $825.1 million, down from $827.4 million in the prior-year quarter. The marginal revenue decline reflected lower contributions from residential fixed broadband and maritime services, which offset continued growth in aviation and government Satellite Communications. The segment’s adjusted EBITDA decreased to $311.3 million from $321.5 million.
Revenues from the Defense and Advanced Technologies (DAT) segment were $331.5 million, down 4% year over year, primarily due to weaker contributions from Advanced Technologies & Other and Space and Mission Systems, despite strong Tactical Networking growth. Adjusted EBITDA decreased to $69.9 million from $86.9 million in the year-ago quarter.
Other Details
In the June quarter, Viasat reported an operating income of $47.3 million compared with $46.7 million in the prior-year quarter. Adjusted EBITDA was $381.1 million, down from $408.5 million in the year-ago quarter. The net contract awards increased to $1.3 billion from $1.18 billion a year ago, while the backlog increased 19% year over year to $4.22 billion.
Cash Flow & Liquidity
During the first quarter of fiscal 2027, Viasat generated an operating cash flow of $260.6 million compared with $258.5 million in the prior-year period. As of June 30, 2026, the company had $1.74 billion in cash and cash equivalents, with a net debt of $4.83 billion.
Outlook
For fiscal 2027, management expects mid-single-digit revenue growth and flat to slightly up adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s low single-digit year-over-year revenue performance, due to continued growth in aviation services, offset by a decline in FS&O. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong growth in information security and cyber defense, as well as space and mission systems and tactical networking.
Capital expenditure is expected to be between $950 million and $1 billion (including approximately $250-$300 million for Inmarsat-related capital expenditures). The company’s operating cash flow is expected to be flat year over year, and the free cash flow is anticipated to be approximately $180 million (excluding the benefit of the Ligado lump sum payments, as they are non-recurring).
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -13.33% due to these changes.
VGM ScoresCurrently, ViaSat has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, ViaSat has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerViaSat is part of the Zacks Wireless Equipment industry. Over the past month, Nokia (NOK - Free Report) , a stock from the same industry, has gained 2.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Nokia reported revenues of $5.6 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $0.08 for the same period compares with $0.05 a year ago.
Nokia is expected to post earnings of $0.08 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nokia. Also, the stock has a VGM Score of D.
It has been about a month since the last earnings report for Kratos (KTOS - Free Report) . Shares have lost about 13.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kratos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Kratos Defense Q2 Earnings and Revenues Outpace Estimates
Kratos Defense & Security Solutions, Inc. reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents.
Kratos Defense reported GAAP earnings of 2 cents per share, which came in line with the year-ago quarter.
KTOS’ Revenue Growth AcceleratesRevenues of $458.8 million beat the consensus estimate of $412 million by 11.4% and increased 30.5% year over year. Kratos Government Solutions led the growth, while total organic revenues advanced 19.1%.
Product sales climbed 33.5% year over year to $289.1 million. Service revenues increased 25.8% to $169.7 million.
Operational Update of Kratos DefenseSelling, general and administrative expenses jumped 35.5% to $73.3 million. Research and development expenses rose 33.3% to $13.6 million.
Amortization of intangible assets increased to $10.1 million from $2.8 million, while depreciation rose to $3.9 million from $3 million.
Kratos recorded an operating loss of $1.6 million against the operating income of $3.7 million a year earlier.
KTOS’ Segmental PerformanceUnmanned Systems: Revenues from this segment totaled $79.1 million compared with $73.2 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.
Kratos Government Solutions: Revenues from this segment amounted to $379.7 million compared with $278.3 million in the year-ago quarter. This rise was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2%, 43.3%, 29.5% and 8.7%, respectively, year over year.
Financial Details of KTOSAs of June 28, 2026, cash and cash equivalents totaled $1.44 billion, up from $0.56 billion as of Dec. 28, 2025.
The company reported other current liabilities of $19.9 million as of June 28, 2026 compared with $9 million recorded as of Dec. 28, 2025.
The net cash used in operating activities amounted to $38.4 million during the first six months of 2026 compared with $40.9 million in the same period of 2025.
KTOS’ Backlog Supports Demand VisibilityConsolidated bookings totaled $492.2 million in the second quarter, resulting in a book-to-bill ratio of 1.1. The last-12-month book-to-bill ratio was 1.3, with bookings of $1.99 billion.
Backlog increased to $2.08 billion as of June 28, 2026 from $2.05 billion at the end of the first quarter. Funded backlog was $1.57 billion, while unfunded backlog totaled $512.7 million. The bid and proposal pipeline expanded to $15 billion from $14.3 billion.
Kratos Defense’s GuidanceKTOS projects third-quarter 2026 revenues to be in the range of $460-$480 million. The Zacks Consensus Estimate for revenues is pegged at $460.3 million, which is at the lower end of the company’s guided range.
Kratos raised its full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion. The Zacks Consensus Estimate for revenues is pegged at $1.75 billion, which is at the lower end of the company’s guided range.
Kratos Defense now expects operating cash flows to be in the range of $30-$50 million and free cash flow to be in the band of $85-$105 million for 2026.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 21.43% due to these changes.
VGM ScoresCurrently, Kratos has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kratos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
It has been about a month since the last earnings report for Wynn Resorts (WYNN - Free Report) . Shares have lost about 9.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Wynn due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Wynn Resorts Q2 Earnings & Revenues Beat on Palace StrengthWynn Resorts reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Management highlighted healthy demand across the business, including a monthly Adjusted Property EBITDAR record in Las Vegas during May and strong performance in Macau. Wynn Palace led the quarter’s growth, with revenues rising 21.1% and Adjusted Property EBITDAR increasing 28.2% year over year.
WYNN’s Q2 Earnings & RevenuesIn the second quarter, the company reported adjusted earnings per share of $1.24, beating the Zacks Consensus Estimate of $1.01 by 22.8%. In the prior-year quarter, Wynn Resorts reported adjusted earnings of $1.09 per share.
Quarterly operating revenues of $1.86 billion surpassed the consensus mark of $1.84 billion by 0.9%. The top line increased 6.9% from $1.74 billion reported in the year-ago quarter.
Wynn Palace OperationsIn the second quarter, Wynn Palace’s operating revenues amounted to $653.4 million compared with $539.6 million in the prior-year quarter. Casino revenues increased 25.9% year over year to $564.4 million, while food and beverage revenues rose 4.4% to $31.8 million.
Rooms and entertainment, retail and other revenues declined 6% each to $36.2 million and $21.1 million, respectively. Adjusted Property EBITDAR increased to $201.5 million from $157.2 million, with the margin improving to 30.8% from 29.1%.
In the VIP segment, table games turnover declined 32% year over year to $2.77 billion. The VIP table games win rate was 2.97% compared with 2.86% in the prior-year quarter and remained below the property’s expected range of 3.1% to 3.4%.
Mass-market table drop increased 3% to $1.9 billion, while table games win rose 36.9% to $563.3 million. The mass-market table games win percentage improved to 29.7% from 22.3%. RevPAR declined 5.7% to $216, while occupancy was 98.9%.
WYNN’s Wynn Macau OperationsIn the second quarter, Wynn Macau generated operating revenues of $351.1 million compared with $343.8 million reported in the prior-year quarter. Casino revenues increased 2.5% to $300.7 million, while entertainment, retail and other revenues rose 8.7% to $12.7 million.
Rooms and food and beverage revenues declined 3.8% and 1.5% to $20.9 million and $16.8 million, respectively. Adjusted Property EBITDAR declined 1% to $95.5 million from $96.5 million.
VIP table games turnover fell 56.4% year over year to $428.1 million. The VIP win rate declined to 2.58% from 3.41% and remained below the expected range.
Mass-market table drop rose 8.3% to $1.75 billion, and table games win increased 6.9% to $300.2 million. Slot machine handle advanced 18%, while slot machine win climbed 38.6%. RevPAR declined 3.3% to $208.
Wynn Resorts’ Las Vegas OperationsIn the second quarter, operating revenues from Las Vegas Operations totaled $643.2 million compared with $638.6 million in the prior-year quarter. Casino revenues increased 6.5% to $158.1 million, while room revenues edged up 0.1% to $208.1 million.
Food and beverage revenues rose 0.4% to $195.7 million. Entertainment, retail and other revenues declined 6.9% to $81.2 million. Adjusted Property EBITDAR decreased 8.3% to $215.2 million, with the margin contracting to 33.5% from 36.8%.
Table drop increased 4.8% year over year to $638.2 million, while table games win rose 14.8% to $152.7 million. The table games win percentage improved to 23.9% from 21.8%.
RevPAR increased 2.5% to $501, while the average daily rate rose 4.9% to $575. Occupancy declined to 87.1% from 89.2% in the year-ago quarter.
WYNN’s Encore Boston HarborIn the second quarter, Encore Boston Harbor’s operating revenues amounted to $209.3 million compared with $215.7 million in the prior-year quarter. Casino revenues fell 5.9% to $152.1 million.
Rooms and food and beverage revenues increased 9.7% and 7.4% to $25.1 million and $20.1 million, respectively. Entertainment, retail and other revenues declined 3.9% to $12 million.
Adjusted Property EBITDAR decreased 12.2% to $56.1 million from $63.9 million. The table games win percentage fell to 18.1% from 21.3%.
RevPAR increased 9.6% to $412, while the average daily rate rose 9.9% to $445. Occupancy was 92.7% compared with 92.9% in the prior-year quarter.
Wynn Resorts’ Q2 Operating PerformanceIn the second quarter, Adjusted Property EBITDAR totaled $568.3 million compared with $552.4 million in the year-ago quarter. The consolidated margin declined to 30.6% from 31.8%.
Operating income increased to $297.6 million from $264.6 million reported in second-quarter 2025. Net income attributable to Wynn Resorts rose to $140.1 million from $66.2 million reported in the prior year quarter.
WYNN’s Cash Position and Capital ReturnsAs of June 30, 2026, cash and cash equivalents totaled $1.57 billion, excluding $527.4 million of short-term investments held by Wynn Macau. Total current and long-term debt outstanding was $10.72 billion.
The company repurchased 741,098 shares for $75 million during the quarter. Wynn Resorts also declared a cash dividend of 25 cents per share, payable Aug. 28, 2026. Wynn Al Marjan Island is expected to open in September 2027.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, Wynn has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Wynn has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
A month has gone by since the last earnings report for Essential Utilities (WTRG - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Essential Utilities due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
WTRG Q2 Earnings Meet Estimates, Revenues Beat on Water Growth
Essential Utilities Inc. reported second-quarter 2026 adjusted earnings of 38 cents per share, in line with the Zacks Consensus Estimate and reflecting no surprise.
GAAP earnings were 37 cents per share, down 2.6% from 38 cents a year ago, as merger-related costs weighed on results.
Total RevenuesQuarterly revenues of $530.9 million rose 3.1% year over year and beat the consensus estimate of $502 million by 5.76%.
WTRG Segment DetailsRegulated water segment revenues totaled $357.5 million, up from $332.3 million in the second quarter of 2025. Regulatory recoveries and increased volume were the largest contributors to the growth.
Regulated natural gas revenues declined to $169.3 million from $177.3 million a year ago. Higher rates and surcharges provided support, but lower purchased gas costs and reduced volumes due to warmer weather pressured the segment.
WTRG’s Operational HighlightsOperations and maintenance expenses increased 3.5% year over year to $153.6 million in the second quarter of 2026 from $148.5 million a year earlier. The rise was mainly due to higher employee-related costs, including annual merit increases and increased medical claims, along with higher water and wastewater production expenses.
Operating income reached $193.3 million, up 4.3% from $185.3 million a year earlier.
Net income, however, declined 1.9% to $105.7 million from $107.8 million, reflecting higher interest expense and other cost pressures.
WTRG Expands Capital and Rate Base SupportEssential invested $662.2 million in regulated water and natural gas infrastructure during the first six months of 2026. The company remains on track to invest $1.7 billion in infrastructure for the full year.
Rate awards and infrastructure surcharges secured so far in 2026 are expected to increase annual water revenues by $43.9 million and natural gas revenues by $12.7 million. Pending water and wastewater cases seek $79.7 million in incremental annual revenues, while a Pennsylvania natural gas case requests a $163.2 million increase.
WTRG’s Balance Sheet Supports Investment Plans
As of June 30, 2026, net property, plant and equipment totaled $14.75 billion, up from $14.26 billion at the end of 2025. Long-term debt, excluding the current portion, increased to $8.42 billion from $8.11 billion.
The company had $960 million available under its credit lines, while the weighted average cost of fixed-rate long-term debt was 4.16%. Essential also raised its quarterly dividend 5.25% to 36.06 cents per share, payable on Sept. 1, 2026, to shareholders of record as of Aug. 11.
Essential Maintains Growth and Merger OutlookThe company reaffirmed its expectation for adjusted earnings growth of 5% to 7% annually from adjusted 2024 earnings of $1.97 per share through 2027. Its guidance continues to incorporate signed municipal water and wastewater acquisitions, excluding the pending DELCORA transaction. The Zacks Consensus Estimate for earnings is currently pegged at $2.21 per share.
Essential also continues to expect its merger with American Water to close in the first quarter of 2027. The transaction has received regulatory approvals in Kentucky, Ohio and Virginia, while shareholders of both companies approved the merger-related proposals in February 2026.
How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM ScoresAt this time, Essential Utilities has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Essential Utilities has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerEssential Utilities belongs to the Zacks Utility - Water Supply industry. Another stock from the same industry, California Water Service Group (CWT - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
California Water Service Group reported revenues of $308.6 million in the last reported quarter, representing a year-over-year change of +16.5%. EPS of $0.93 for the same period compares with $0.71 a year ago.
California Water Service Group is expected to post earnings of $1.22 per share for the current quarter, representing a year-over-year change of +18.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -8.7%.
California Water Service Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
TransMedics za poslední měsíc přidala asi 10,2 % po zvýšení spodní hranice celoročního výhledu tržeb na 737 až 757 milionů USD. Ve 2. čtvrtletí tržby meziročně vzrostly o 20,7 % na 189,9 milionu USD, ale zisk na akcii zaostal za odhady.
A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TransMedics 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 drivers.
TransMedics Q2 Earnings Miss Estimates, Revenues Up Y/YTransMedics delivered earnings per share of 44 cents in the second quarter of 2026, down 52.2% year over year. The figure missed the Zacks Consensus Estimate by 12%.
TMDX Revenue Mix Shows Service StrengthRevenues rose 20.7% year over year to $189.9 million and surpassed the consensus estimate by 3.1%.
Net product revenues totaled $111.2 million, up 15.7% from the prior-year quarter. The improvement was led by higher organ utilization and increased OCS adoption, particularly across the liver and heart businesses.
Service revenues represented roughly 41% of total revenues and increased 28.6% to $78.8 million. Clinical service revenues rose 19.1% to around $36 million. The stronger service contribution reflected broader logistics adoption, pricing adjustments and higher aviation-fleet utilization.
Transplant Logistics’ services revenues for second-quarter 2026 were approximately $41 million, up 39% year over year. TransMedics operated 22 owned aircraft during the quarter and covered 86% of National OCS Program missions requiring air transportation, compared with 82% coverage in the first quarter of 2026. This growth resulted from the broader adoption of TransMedics’ logistics services, increased aviation-fleet utilization and improved operating efficiency.
TMDX’s Margin TrendIn the quarter under review, TransMedics’ gross profit increased 17.2% year over year to $113.2 million. The gross margin contracted 100 basis points (bps) to 60%.
Selling, general and administrative expenses rose 31.2% year over year to $57.8 million. Research, development and clinical trials expenses surged 98.5% year over year to $31.6 million. Total operating expenses of $89.5 million increased 49.1% year over year.
Adjusted operating profit totaled $25.8 million, reflecting a decline of 29.5% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 960 bps to 13.6%.
TransMedics’ Financial PositionTransMedics exited second-quarter 2026 with cash of $472.7 million compared with $461.7 million at the end of the first quarter. Total long-term debt at the end of second-quarter 2026 was $39.7 million compared with $44.5 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $41.8 million compared with $88.8 million a year ago.
TransMedics Raises Its Revenue OutlookTransMedics raised the lower end of its 2026 revenue guidance. Revenues are now expected to be between $737 million and $757 million, representing growth of approximately 22% to 25% from the 2025 level. The previous projection called for revenues of $727 million to $757 million.
The outlook excludes contributions from PAD Aviation and assumes no incremental revenues from the ENHANCE Part B and DENOVO clinical programs. Adjusted operating margin, excluding PAD Aviation, is expected to be between 12.5% and 14%, below the company’s prior expectation of approximately 16% because of accelerated OCS Kidney investments.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -31.5% due to these changes.
VGM ScoresAt this time, TransMedics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransMedics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerTransMedics is part of the Zacks Medical - Instruments industry. Over the past month, IQVIA Holdings (IQV - Free Report) , a stock from the same industry, has gained 11.8%. The company reported its results for the quarter ended June 2026 more than a month ago.
IQVIA reported revenues of $4.37 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $3.15 for the same period compares with $2.81 a year ago.
IQVIA is expected to post earnings of $3.25 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
IQVIA has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
IDEX ve 2. čtvrtletí 2026 zvýšil organické tržby HST o 12 % a objednávky o 47 %, což prodloužilo viditelnost backlogu až do roku 2027. Zároveň zvedl výhled organického růstu tržeb pro rok 2026 na 5–6 % z 3–4 %.
Key Takeaways IEX's HST organic sales rose 12%, while orders jumped 47%, extending backlog visibility into 2027.IDEX raised its 2026 organic sales growth outlook to 5-6% on stronger HST orders and industrial demand.Acquisitions added 1% to second-quarter sales, while dividends returned value to shareholders. IDEX Corporation (IEX - Free Report) is benefiting from sustained demand in data center power, semiconductor, space and defense markets. Accretive acquisitions and shareholder-friendly policies also bode well.
IEX currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: IDEX is benefiting from demand across data center, semiconductor, space and defense markets within the Health & Science Technologies (HST) segment, while municipal water and mining continue to support the Fluid & Metering Technologies (FMT) segment. In second-quarter 2026, HST organic sales rose 12% and organic orders increased 47%, extending backlog visibility into 2027. FMT organic sales increased 1% and orders rose 11%, with water and mining gains partly offset by energy, agriculture and chemical softness. The company raised its 2026 organic sales growth outlook to 5-6% from 3-4%, supported by a larger HST order book and improving demand in its industrial businesses. This mix of secular and industrial demand is expected to support IDEX’s growth beyond the latest quarter.
Accretive Acquisition: IDEX continues to undertake acquisitions to expand its technology portfolio and reach higher-value markets. In second-quarter 2026, acquisitions added 1% to consolidated sales growth and 2% to HST sales growth, reflecting Micro-LAM, acquired in July 2025. Consolidated organic sales also rose 5% in second-quarter 2026, alongside the 1% acquisition/divestiture contribution. Micro-LAM expands IDEX’s optics technology offerings within HST. The September 2024 acquisition of Mott for $1 billion added applied materials science capabilities and broadened the company’s exposure to semiconductor fabrication, medical technologies and water purification.
In the past year, the company’s shares have gained 36.2% against the industry‘s 0.7% decline.
Image Source: Zacks Investment Research
Rewards to Shareholders: IEX is committed to returning value to shareholders through dividend payments and share repurchases. In second-quarter 2026, the company paid about $54 million in dividends and repurchased $77 million of shares. For the first six months of 2026, dividend payments totaled $106.7 million compared with $105.9 million a year earlier, while cash paid for share repurchases increased to $153.4 million from $100 million.
Estimate Revisions: The Zacks Consensus Estimate for IEX’s 2026 earnings is pegged at $8.82 per share, indicating an increase of 3.9% from the 60-day-ago figure. The consensus estimate for 2027 earnings is pegged at $9.68 per share, indicating a rise of 24.6% in the same period.
Other Stocks to ConsiderSome other top-ranked companies from the same space are discussed below:
Generac Holdings Inc. (GNRC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter average earnings surprise of 13.7%. In the past 60 days, the consensus estimate for GNRC’s 2026 earnings has increased 8.5%.
Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.3%.
The Zacks Consensus Estimate for AIT’s fiscal 2027 earnings has increased 1.7% in the past 60 days.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO delivered a trailing four-quarter average earnings surprise of 13.1%.
In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 10.4%.
Recursion Pharmaceuticals rozšiřuje onkologické portfolio o REC-1245, REC-617, REC-3565, REC-4539 a REC-7735 a s FDA jedná o schvalovací cestě pro REC-4881 ve FAP. Genentech navíc přesunul první neurologický cíl ze své spolupráce do raného discovery programu.
Key Takeaways Recursion is advancing REC-4881 in FAP while pursuing a potential registrational pathway with the FDA.RXRX is expanding its oncology pipeline with REC-1245, REC-617, REC-3565, REC-4539 and REC-7735.Genentech has advanced a neuroscience target from its RXRX collaboration, further validating its platform. Recursion Pharmaceuticals (RXRX - Free Report) uses an AI-driven drug discovery platform, Recursion Operating System (OS), to identify and develop novel therapies across its pipeline. It is advancing several clinical-stage programs, with REC-4881 emerging as its most advanced internal candidate and multiple oncology assets providing additional pipeline diversification.
REC-4881, an allosteric MEK1/2 inhibitor, is being evaluated in a phase Ib/II TUPELO study for familial adenomatous polyposis (FAP), a rare inherited disorder characterized by the development of numerous colorectal polyps. Earlier clinical data showed rapid and durable reductions in polyp burden, which Recursion described as the first clinical validation of the Recursion OS. RXRX has initiated discussions with the FDA on a potential registrational pathway, while additional phase II safety and efficacy data from the TUPELO study are expected in November 2026.
Beyond REC-4881, Recursion is advancing several oncology candidates, including REC-1245 for biomarker-enriched solid tumors and lymphoma, REC-617 for advanced solid tumors and REC-3565 for B-cell malignancies, all of which are currently undergoing early-stage development. REC-4539, an LSD1 inhibitor, also entered clinical-stage development for solid tumors, with potential applicability in hematologic malignancies. Meanwhile, REC-7735, an AI-designed PI3Kα H1047R inhibitor, has received clinical-study clearance and is expected to enter a phase I/II study in the second half of 2026 for selected PIK3CA H1047R-mutant solid tumors, adding another potential catalyst to the pipeline.
Recursion is also advancing REC-102, an ENPP1 inhibitor for hypophosphatasia, following its acquisition of full rights to the program from Rallybio. The oral candidate is designed as a potential disease-modifying treatment for hypophosphatasia and expands Recursion's presence in rare diseases. In addition, Genentech (a wholly owned subsidiary of Roche) recently advanced the first neuroscience target from its collaboration with Recursion into an early discovery program, providing another potential validation of RXRX’s proprietary platform. With multiple clinical programs advancing and several potential catalysts ahead, Recursion’s expanding pipeline could strengthen its long-term growth prospects.
RXRX Faces Competitive Pressure in the TechBio IndustryIn the TechBio space, Relay Therapeutics (RLAY - Free Report) and Schrödinger (SDGR - Free Report) are emerging as strong competitors to Recursion Pharmaceuticals, using computationally driven platforms to discover and develop novel therapies.
RLAY is currently evaluating its lead candidate, zovegalisib (RLY-2608), a mutant-selective PI3Kα inhibitor, in the phase III ReDiscover-2 study in combination with fulvestrant in previously CDK4/6-treated, PIK3CA-mutated HR+/HER2- advanced breast cancer. It is also planning to initiate a separate late-stage frontline breast cancer study of the candidate, subject to regulatory feedback, while the phase I/II ReInspire study is evaluating zovegalisib in PIK3CA-driven vascular anomalies. Relay Therapeutics is also developing RLY-8161, an NRAS-selective inhibitor, in a phase I/II study for NRAS-mutant melanoma and other solid tumors. In addition, the company is advancing a preclinical, non-inhibitory chaperone program for Fabry disease, as well as early-stage discovery programs across both precision oncology and genetic diseases.
Schrödinger’s lead proprietary pipeline consists of SGR-1505, a MALT1 inhibitor in phase I for relapsed/refractory B-cell malignancies, and SGR-3515, a Wee1/Myt1 inhibitor undergoing phase I development for advanced solid tumors. Both programs were discovered using Schrödinger's computational capabilities, with SGR-3515 showing preliminary clinical activity and SGR-1505 demonstrating encouraging activity in B-cell malignancies in earlier updates. SDGR plans to complete its ongoing early-stage studies while seeking strategic partners to advance SGR-1505 and SGR-3515 beyond phase I.
RXRX’s Stock Price, Valuation & Estimate MovementsYear to date, RXRX shares have lost 17.4% against the industry’s 9.7% growth. During the same time frame, Recursion has also underperformed the S&P 500 and the overall medical sector, as seen in the chart below.
RXRX Mixed Stock PerformanceImage Source: Zacks Investment Research
Recursion is trading at a discount to the industry, as seen in the chart below. Going by the price/book value ratio, the company’s shares currently trade at 1.97, which is less than 3.97 for the industry. The stock is trading significantly below its five-year mean of 3.22.
RXRX Stock ValuationImage Source: Zacks Investment Research
Loss estimates for 2026 have narrowed from 99 cents per share to 92 cents over the past 30 days. During the same time frame, RXRX’s 2027 loss per share estimates have narrowed from 96 cents to 92 cents.
RXRX Estimate MovementImage Source: Zacks Investment Research
Recursion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Match Group za poslední měsíc přidala 11,2 % po zveřejnění výsledků, i když zisk na akcii i tržby za 2. čtvrtletí 2026 zaostaly za odhady. Hinge dál roste, zatímco Tinder a E&E zůstávají pod tlakem.
It has been about a month since the last earnings report for Match Group (MTCH - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Match Group due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Match Group Inc. before we dive into how investors and analysts have reacted as of late.
Match Group Q2 Earnings & Revenues Miss Estimates, Sales Decline Y/YMatch Group reported second-quarter 2026 earnings of 92 cents per share, missing the Zacks Consensus Estimate by 5.15%.
Revenues were $853 million, down 1% year over year, and lagging the Zacks Consensus Estimate of $856 million by 0.34%. The quarter reflected improving engagement trends at Tinder and continued expansion at Hinge.
MTCH’s Q2 Operating Metrics DetailsThe company’s key operating metrics showed mixed momentum, with total payers declining 6% year over year to 13.3 million, while revenue per payer (RPP) increased 6% to $21.13. Tinder’s user trends improved, while Hinge continued to deliver strong growth through product innovation and international expansion.
MTCH Improves Tinder Engagement TrendsTinder direct revenues were $457.5 million in the second quarter, down 1% year over year and down 2% on a foreign exchange-neutral basis.
Payers declined 5% to 8.5 million, while RPP increased 4% to $17.90. Adjusted EBITDA was $233 million, down 5% year over year, with a 50% margin.
The company continued investing in Tinder’s product turnaround. Management highlighted improvements in recommendation algorithms, Trust and Safety initiatives, and new features designed to create lower-pressure ways for users to connect. Tinder’s daily active users declined 4% year over year in the quarter, representing the best performance in 10 quarters.
Match Group Sees Hinge Growth ContinueHinge remained a major growth contributor, with direct revenues rising 22% year over year to $203.5 million. Revenues increased 20% on a foreign exchange-neutral basis, supported by a 17% increase in payers to 2 million and a 4% rise in RPP to $33.11.
Match Group noted that Hinge’s global monthly active users increased 13% year over year, driven by expansion markets. The company continued broadening Hinge’s international presence, entering six new European countries and four additional countries in Latin America during the quarter.
The business is still expected to reach $1 billion in revenues in 2027, with growth expected to come from product innovation, international expansion and additional monetization opportunities.
MTCH Reports Segment Pressure From E&EEveryone Everywhere (E&E) direct revenues were $178.9 million, down 17% year over year and down 17% on a foreign exchange-neutral basis. Payers declined 21% to 2.7 million, while RPP increased 4% to $22.24. Adjusted EBITDA was $54 million, up 69%, and at a 30% margin.
The company continued restructuring the portfolio, with E&E now including Azar and Pairs. Management said the segment is benefiting from shared capabilities across Match Group, including Trust and Safety, recommendation algorithms, centralized marketing and consumer research.
The company expects E&E revenue trends to remain pressured by the Azar app redesign while maintaining a focus on improving the long-term health of the portfolio.
Match Group’s Q2 Operating DetailsTotal operating expenses declined 9% year over year to $608 million in the second quarter. Cost of revenues decreased 16% year over year, helped by alternative payment savings, while general and administrative expenses declined 22%, driven by lower headcount-related costs and legal expenses.
Adjusted EBITDA was $331 million, up 14% year over year, representing an adjusted EBITDA margin of 39%, which expanded approximately 500 basis points from 33% in the year-ago quarter.
MTCH’s Balance Sheet and Cash FlowAs of June 30, 2026, Match Group had cash, cash equivalents and short-term investments of $584 million compared with $1.02 billion as of March 31, 2026. The decline primarily reflected the use of $424 million in cash to repay the company’s 0.875% exchangeable senior notes due in June 2026.
Long-term debt, including current maturities, stood at $3.6 billion as of June 30, 2026. Match Group ended the quarter with trailing twelve-month gross leverage of 2.7x and net leverage of 2.2x. The company’s $500 million revolving credit facility remained undrawn as of June 30, 2026.
Match Group generated $370 million in operating cash flow and $353 million in free cash flow in the second quarter. It also repurchased 7.3 million shares for $245 million and paid $91 million in dividends during the period.
MTCH Provides Q3 & 2026 OutlookFor the third quarter of 2026, Match Group expects revenues of $885 million to $895 million, representing a year-over-year decline of 2% to 3%. Adjusted EBITDA is projected at $330 million to $335 million, implying a 10% year-over-year increase at the midpoint.
For full-year 2026, management expects revenues to be near the midpoint of its previously issued guidance range on an as-reported basis and at or above the midpoint on a foreign exchange-neutral basis. Adjusted EBITDA is expected to be at or above the high end of prior guidance, with margin expected to exceed the company’s 37.5% target.
The company expects Tinder direct revenues to decline in the low-single-digit percentage range for the year, an improvement from its previous outlook. It also expects free cash flow to be at the high end of its prior guidance range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 11.67% due to these changes.
VGM ScoresCurrently, Match Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Match Group has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerMatch Group belongs to the Zacks Internet - Software industry. Another stock from the same industry, Automatic Data Processing (ADP - Free Report) , has gained 4.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
ADP reported revenues of $5.47 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.64 for the same period compares with $2.26 a year ago.
ADP is expected to post earnings of $2.78 per share for the current quarter, representing a year-over-year change of +11.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ADP. Also, the stock has a VGM Score of D.
