Track market-moving stories before they get noisy

Corient Private Wealth LP bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 5,476,562 shares of the software giant’s stock, valued at approximately $2,042,837,000. Microsoft comprises about 1.5% of Corient Private Wealth LP’s investment portfolio, making the stock its 13th largest position. Corient Private Wealth LP owned about 0.07% of Microsoft at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Punch & Associates Investment Management Inc. purchased a new position in Microsoft in the 2nd quarter valued at approximately $16,082,000. Palestra Capital Management LLC acquired a new position in shares of Microsoft in the second quarter worth $28,969,000. Palogic Value Management L.P. acquired a new position in shares of Microsoft in the second quarter worth $7,867,000. Ausdal Financial Partners Inc. purchased a new stake in shares of Microsoft during the second quarter worth $20,998,000. Finally, Axim Planning & Wealth purchased a new stake in shares of Microsoft during the second quarter worth $902,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Microsoft Trading Down 0.3% Shares of NASDAQ:MSFT opened at $531.87 on Wednesday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company’s 50 day moving average is $506.64 and its two-hundred day moving average is $443.46. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a market cap of $3.95 trillion, a PE ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the business earned $3.65 EPS. Equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year. Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 20.27%.

Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth MSFT has been the topic of several analyst reports. Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and increased their price objective for the company from $530.00 to $575.00 in a research note on Tuesday, September 22nd. Jefferies Financial Group boosted their target price on Microsoft from $575.00 to $650.00 and gave the stock a “buy” rating in a research note on Wednesday, October 14th. Tigress Financial boosted their target price on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Piper Sandler restated an “overweight” rating on shares of Microsoft in a report on Tuesday. Finally, Morgan Stanley lowered Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday, October 5th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $592.15.

View Our Latest Analysis on MSFT

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Microsoft Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Featured Stories Five stocks we like better than Microsoft Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Parvin Asset Management LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 5,645 shares of the software giant’s stock, valued at approximately $2,106,000. Microsoft comprises approximately 1.7% of Parvin Asset Management LLC’s portfolio, making the stock its 8th largest position.

Several other hedge funds have also recently added to or reduced their stakes in MSFT. Bank of America Corp DE purchased a new position in shares of Microsoft during the 2nd quarter worth approximately $27,338,370,000. Auto Owners Insurance Co raised its position in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the last quarter. Legal & General Group Plc acquired a new position in shares of Microsoft during the 2nd quarter worth approximately $18,306,443,000. Amundi raised its position in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth A number of research firms recently issued reports on MSFT. Wolfe Research lowered Microsoft from an “outperform” rating to a “hold” rating in a research note on Wednesday, September 23rd. Needham & Company LLC initiated coverage on Microsoft in a research report on Wednesday, September 23rd. They set a “buy” rating for the company. Tigress Financial raised their price target on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. UBS Group boosted their price target on Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Finally, Oppenheimer upped their price objective on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research report on Tuesday, September 22nd. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $592.15.

View Our Latest Research Report on MSFT Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short. Insider Activity at Microsoft In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance Shares of NASDAQ MSFT opened at $531.87 on Wednesday. The company has a 50-day simple moving average of $506.64 and a 200-day simple moving average of $443.46. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market cap of $3.95 trillion, a PE ratio of 29.61, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 earnings per share. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is currently 20.27%.

Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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Recent events suggest funding is getting harder to come by for some artificial intelligence (AI) companies. Two weeks ago, Australian data center company, Firmus, cancelled its initial public offering (IPO) due to a lack of investor demand. Moreover, financing costs are soaring for data center operators like CoreWeave. To top things off, Anthropic could face a $500 billion reduction to its expected valuation when it eventually goes public.

This is all bad news for the semiconductor industry, because it could reduce demand for data center chips and components. As a result, Advanced Micro Devices (AMD -0.61%) stock plunged by 13% last week alone, as investors started pricing in a potential slowdown in sales growth.

But AMD is scheduled to release its operating results for the third quarter of 2026 (ended Sept. 30) after the market closes on Nov. 3, and if the company puts some of the recent concerns to bed, its stock could stage a powerful recovery. So, should investors buy the recent dip ahead of the report?

Image source: The Motley Fool.

AMD faces explosive demand, but will it last? AMD launched its first data center graphics processing unit (GPU) for AI workloads in 2023, and it was called the MI300X. It wasn't quite as powerful as Nvidia's (NVDA -0.29%) original H100 GPU, but customers like Oracle, Microsoft, and Meta Platforms deemed it a worthy alternative, particularly in the face of supply constraints across the industry.

AMD has since launched several new GPUs. The latest MI450 chips can be 15% more powerful and 30% more energy efficient than anything else on the market when paired with the company's Helios integrated data center rack. In other words, it appears AMD has officially closed the performance gap to Nvidia.

Anthropic and OpenAI are expected to be two of the largest buyers of MI450 GPUs (along with hyperscalers like Microsoft and Meta). But if Anthropic attracts a lower valuation than expected for its upcoming IPO, it might not raise as much money as it originally hoped, leaving it with less cash to buy chips.

OpenAI has postponed its IPO entirely, suggesting it doesn't feel confident about its ability to attract funding in the public markets. OpenAI has agreed to deploy 6 gigawatts' worth of computing capacity over the next few years using AMD's chips, starting with the MI450, and those plans could be at risk if the start-up doesn't receive significantly more funding.

Lisa Su's guidance on Nov. 3 will be key AMD generated $21.8 billion in revenue during the first six months of 2026 (to June 27), a 44% increase from the year-ago period. The data center business alone accounted for $12.5 billion of that total, and it grew at a much faster pace of 81%.

AMD's guidance suggests data center revenue likely grew at a "very strong double-digit" pace yet again in the third quarter. But looking ahead, chief executive Lisa Su thinks data center sales will more than double in 2027. Moreover, in a series of remarks earlier this month, Su revealed plans to substantially increase GPU supply next year, suggesting AMD might be targeting a higher market share.

Investors will be looking for updated commentary from Su on Nov. 3. If she maintains or even increases her 2027 outlook, it might put some of the recent jitters across the AI industry to rest -- at least temporarily. On the flipside, AMD stock could plummet even further if she tempers her previous expectations.

AMD stock is not cheap heading into Nov. 3 AMD generated adjusted (non-GAAP) earnings of $5.76 per share over its last four reported quarters, placing its stock at a price-to-earnings (P/E) ratio of 91.8 (based on its closing stock price last Friday, Oct. 16). That means it's more than three-times as expensive as its closest rival, Nvidia, which has a P/E ratio of 27.1.

$534.74-$3.31 (-0.61%)

NASDAQ · As of 4:00 PM ET 10/20/26

Therefore, AMD is basically priced for perfection heading into its Nov. 3 report, which doesn't seem appropriate given the uncertainty plaguing the AI industry. Even if we value its stock based on Wall Street's average 2027 earnings estimate of $15.76 per share (provided by Yahoo! Finance), its forward P/E ratio is still a hefty 33.5. In other words, if AMD stock did absolutely nothing until the end of next year, it would still be more expensive than Nvidia is today.

To make matters worse, Wall Street's earnings estimate might be too ambitious if funding conditions worsen for AI companies, because they might have to postpone or cancel some of their existing semiconductor orders.

As a result, while it's entirely possible AMD delivers another blockbuster quarterly report on Nov. 3, I'm not convinced its stock will rally given its elevated valuation. That's why I personally wouldn't buy it today.

News Summary:

NVIDIA introduces DSX POD, a reference design for complete Vera Rubin AI factories built by partners in modular containers, integrated and validated before delivery.Factory-built units reduce deployment time at a prepared site from six months to as little as 14 days, helping customers begin generating production tokens and earning revenue sooner.A global ecosystem of computing and infrastructure partners are working with NVIDIA to deliver modular AI factories worldwide in early 2027. BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- GTC Berlin -- NVIDIA today introduced DSX POD, a reference design for complete NVIDIA Vera Rubin AI factories built by partners inside modular containers, integrated and validated before delivery. The units arrive ready to connect out of the box to a prepared site’s power, cooling, networking and other supporting infrastructure, reducing deployment time from six months to as little as 14 days.

DSX POD moves the integration and installation of computing, networking, cabling, rack-level power and liquid cooling to the manufacturing facility, reducing the extensive planning, construction, specialized labor and logistics of a traditional onsite build. Factory-tested containers reduce exposure to component delays and costly, error-prone onsite work, creating a shorter path to model training and production inference so customers can begin generating tokens and earning revenue sooner.

“An AI factory creates value when it starts producing tokens — not when construction is complete,” said Jensen Huang, founder and CEO of NVIDIA. “With NVIDIA DSX POD, we’re bringing factory-built precision and speed to AI infrastructure construction — reducing deployment time from months to weeks so customers can scale capacity and bring revenue-generating production online faster.”

Factory-Built Infrastructure
NVIDIA DSX POD brings Vera Rubin systems together with the infrastructure needed to operate them in repeatable, factory-built, containerized designs that partners can manufacture and deliver at scale.

It carries forward the design philosophy of the broader NVIDIA DSX™ infrastructure platform, with a distinct architecture that integrates and validates systems in purpose-built containers before transport and deployment. Partners complete rack-to-rack cabling, wiring, piping and functional validation before shipment. This work takes place separately from site preparation, further shortening the time needed to bring new capacity online.

That earlier start to production is the link between deployment speed and economics. Time to first token marks when a new AI factory begins running models to serve production workloads, giving operators the opportunity to put their infrastructure to work for customers sooner.

Global Partner Ecosystem and Availability
NVIDIA is working with Anduril, Armada, Bull, Crusoe, DayOne, Dell Technologies, Delta, Eaton, Foxconn (Ingrasys), GIGABYTE, HPE, Lenovo, Pegatron, Quanta Cloud Technology (QCT), Schneider Electric, Vertiv and Wistron to deliver DSX POD AI factories worldwide in early 2027.

Watch the GTC Berlin keynote from Huang and explore sessions.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, including DSX POD’s ability to accelerate AI factory deployment and production inference and support customers’ AI capacity, profitability and revenue growth; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing product and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d8efda66-775f-4fec-838f-aa669d9f1c93

NVIDIA DSX POD NVIDIA introduces DSX POD, a reference design for complete Vera Rubin AI factories built by partners...

News Summary:

The NVIDIA OpenShell Reference Architecture delivers enterprise governance, isolation and security for building, containing, observing and enforcing safe agents across enterprise infrastructure and edge systems.Built on the foundation of NVIDIA OpenShell secure runtime software, the architecture brings together NVIDIA Vera Rubin infrastructure for model inference, NVIDIA Vera CPUs for agent harnesses and tool use, and NVIDIA BlueField-4 DPUs running NVIDIA Sentry for in-silicon enforcement. The OpenShell Reference Architecture extends to the edge with NVIDIA RTX Spark, NVIDIA DGX Spark and NVIDIA DGX Station systems.The OpenShell Reference Architecture runs on leading enterprise operating systems, including Canonical, Red Hat, and Microsoft Windows and Microsoft Execution Containers.Anthropic, AWS, Cisco, CrowdStrike, Dassault Systèmes, Dell Technologies, Google Cloud, HPE, IBM, Meta, Microsoft, OpenAI, Palo Alto Networks, Perplexity, SAP, ServiceNow, Siemens, SpaceX Super Intelligence and others are among those working with the OpenShell Reference Architecture to enhance the security of agent deployments. BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- GTC Berlin -- NVIDIA today announced the NVIDIA OpenShell Reference Architecture, which enables building, containing, observing and enforcing safe agents on enterprise infrastructure and edge systems.

The OpenShell Reference Architecture builds on the foundation of NVIDIA OpenShell™ secure runtime software, extending it into full-stack, industrial-scale infrastructure for agent development and operations.

It includes NVIDIA Vera Rubin infrastructure for running enterprise workloads, including closed and open models built with NVIDIA Nemotron™; NVIDIA Vera CPUs for operating agent harnesses; open source NVIDIA OpenShell software; and NVIDIA BlueField® DPUs for running the NVIDIA Sentry unified security software framework that provides continuous out-of-band monitoring of agent behavior and in-silicon policy enforcement.

The OpenShell Reference Architecture is extensible to agents running at the edge across industries such as retail, healthcare, manufacturing, robotics, software development and telecommunications with NVIDIA RTX Spark™, NVIDIA DGX Spark™ and NVIDIA DGX Station™ systems.

“AI capability and safety must advance together,” said Jensen Huang, founder and CEO of NVIDIA. “As enterprises prepare to deploy billions of AI agents, safety and control must be built into the computing architecture. NVIDIA created OpenShell to give agents the freedom to do useful work within clearly defined boundaries — contained, monitored and under control. With the OpenShell Reference Architecture, agents can think on Rubin, act on Vera and be governed on BlueField.”

Full-Stack Infrastructure Built for Agents
The OpenShell Reference Architecture features NVIDIA accelerated computing paired with software for secure agent operations.

NVIDIA Vera Rubin, with NVIDIA Vera Rubin NVL72 infrastructure at its core, is fungible across pretraining, post-training and inference. For agentic workloads, NVIDIA Vera Rubin NVL72 systems deliver 30x higher throughput per megawatt.NVIDIA Vera CPUs deliver 2x the performance of x86 processors with greater energy efficiency and run NVIDIA OpenShell, which provides a secure runtime boundary for autonomous agents.NVIDIA BlueField-4 DPUs continuously monitor agent behavior with NVIDIA Sentry, built on NVIDIA DOCA™ software. BlueField and NVIDIA Sentry together provide in-silicon security enforcement — if an agent attempts to move outside its software boundary, NVIDIA Sentry quarantines and stops it in milliseconds. NVIDIA Sentry, powered by DOCA and running on BlueField-4, boosts agent capacity by up to 20%.
NVIDIA Partners Building Secure Agent Deployments With OpenShell
NVIDIA is working with industry leaders building infrastructure, models and software to enable industries to safely deploy agents in production.

The OpenShell Reference Architecture runs on leading enterprise operating systems and container orchestration layers, including Linux and Kubernetes infrastructure powered by Canonical, SUSE and Red Hat, as well as Microsoft Windows using Microsoft Execution Containers (MXC). It can run on cloud operating systems from Amazon Web Services, Google Cloud and Microsoft Azure.

Enterprises can run agents from model builders including Anthropic, Cohere, Google, Meta, OpenAI, Perplexity, Reflection and SpaceX Super Intelligence on OpenShell infrastructure. NVIDIA is also working with model builder partners on OpenShell deployments for advanced model research.

Cybersecurity leaders 1Password, Check Point, CrowdStrike, Cisco, F5, Fortinet, Microsoft, Okta, Palo Alto Networks, TrendAI and Zscaler are integrating support for the OpenShell Reference Architecture into their agent security solutions.

Leading banks — including Europe’s BBVA and Santander — are working with NVIDIA to explore the OpenShell Reference Architecture as a framework for strengthening agent safety, security and governance.

Enterprise software leaders Cadence, Dassault Systèmes, IBM, SAP, Siemens and Synopsys are working with OpenShell to build agent software platforms. Palantir and NVIDIA are working with customers to deploy secure agents in production.

SAP is integrating the NVIDIA OpenShell Reference Architecture with Joule Studio runtime, part of SAP Business AI Platform, connecting business governance with secure agent execution.

ServiceNow today announced the general availability of ServiceNow Arc, a personal long-running AI agent with actions governed at runtime by the ServiceNow Super Intelligence Control Tower and enforced by NVIDIA OpenShell. In addition, ServiceNow’s recently announced AI Passport authority layer carries those policies to NVIDIA OpenShell and NVIDIA Sentry, so enterprises can revoke an AI agent’s access across software and hardware within seconds.

NVIDIA system manufacturers Dell Technologies, Cisco, HPE, Lenovo and Supermicro are among those building infrastructure with the OpenShell Reference Architecture.

NVIDIA is also working with cloud service providers including CoreWeave, Crusoe, Firebird, Firmus, GMI Cloud, IREN, Lambda, Nebius, Nscale, Oracle Cloud Infrastructure and Vultr to deploy OpenShell-ready infrastructure.

Inference and post-training service providers including Baseten, Deepinfra, Fireworks and Together AI are building OpenShell Reference Architecture integrations into their model development pipelines.

Availability
The NVIDIA OpenShell Reference Architecture is now available.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners, and related deployments, availability and timing; expectations with respect to technology developments, and related trends and drivers; expectations with respect to enterprise adoption and deployment of AI agents and related safety, governance and control; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

Many of the products and features described herein remain in various stages and will be offered on a when-and-if-available basis. The statements above are not intended to be, and should not be interpreted as a commitment, promise, or legal obligation, and the development, release, and timing of any features or functionalities described for our products is subject to change and remains at the sole discretion of NVIDIA. NVIDIA will have no liability for failure to deliver or delay in the delivery of any of the products, features or functions set forth herein.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/077e35f0-622d-4f90-8402-6f2bce21a913

NVIDIA OpenShell Reference Architecture NVIDIA today announced the NVIDIA OpenShell Reference Architecture, which enables building, containi...

 News Summary:

NVIDIA and the UW Medicine Institute for Protein Design debut RFD4-Proteina, a new open model that combines programmable protein design with search capabilities, unlocking new frontiers in biology.Siemens Healthineers is advancing the next generation of adaptive radiotherapy, using NVIDIA intelligence to increase access to life-saving cancer care with agentic co-planning, patient-specific simulation and robotic control.Automata, Benchling, Biolevate, Boltz, Danaher, Hologen and Therna Biosciences are using the NVIDIA BioNeMo open platform to develop scientific agents that connect drug design, autonomous laboratories and biological discovery, helping researchers move from hypothesis to experiments faster. BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- GTC Berlin—NVIDIA today announced collaborations with leading global healthcare and research organizations to advance protein design — including through a newly released open model, RFD4-Proteina — accelerate drug discovery and bring greater precision to cancer care.

Life sciences researchers must search vast biological design spaces and aim to shorten the cycle between computational design and laboratory testing to discover new medicines. Cancer care teams face a different challenge: translating complex imaging and treatment data into precise plans for each patient.

NVIDIA open models, accelerated computing and physical intelligence can help experts evaluate more possibilities faster, from designing new proteins to planning adaptive radiotherapy.

“Agentic and physical AI are opening new possibilities across medicine, from designing proteins and powering autonomous laboratories to improving personalized cancer care,” said Kimberly Powell, vice president of healthcare at NVIDIA. “Together with healthcare and life science leaders, we’re accelerating scientific discovery and advancing more precise, accessible care around the world.”

NVIDIA and the UW Institute for Protein Design Introduce RFD4-Proteina
Proteins are molecular tools that perform many of life’s essential tasks, and designing new versions could open paths to new medicines, diagnostics and industrial applications. But finding a protein capable of performing a designed function requires searching an immense range of possible designs.

NVIDIA and the UW Medicine Institute for Protein Design are debuting RFD4-Proteina, a new NVIDIA BioNeMo™ open model that combines programmable protein design with search capabilities.

The model generates targeted protein designs, enabling scientists and agents to search and refine designs using molecular inputs, constraints and scoring objectives. Potential applications include designing proteins to interrupt disease processes or detect signs of disease in diagnostic tests.

In testing reported in the research draft, RFD4-Proteina achieved higher computational design success rates and generation throughput than the evaluated baselines across four benchmark suites: protein binding, small-molecule binding, enzyme scaffolding and DNA binding. The model helps researchers explore and prioritize candidates for laboratory testing, where experiments establish how a design performs under tested conditions.

“We are moving from an era of discovering the proteins nature has made to one in which we can design entirely new ones,” said David Baker, 2024 Nobel Laureate in chemistry and director of the Institute for Protein Design at the University of Washington. “RFD4-Proteina expands what scientists can create, from proteins that could advance drug discovery to enzymes that break down pesticides. Making the model open will allow researchers around the world to build on these capabilities and pursue solutions once beyond the reach.”

RFD4-Proteina is available today through partners including Amazon Bio Discovery, Anthropic’s Claude Science, Benchling, Databricks, Google Cloud, Hugging Face, Nebius, OpenAI and Tamarind Bio, enabling researchers and developers to integrate the open protein design model into agent, cloud and scientific computing workflows.

Siemens Healthineers Advances Cancer Care With NVIDIA
Siemens Healthineers and NVIDIA are collaborating to develop the next generation of adaptive radiotherapy with agentic and robotic intelligence, combining imaging and oncology expertise with accelerated computing and simulation to simplify workflows and expand access to care.

By 2050, approximately 35 million people worldwide are projected to be diagnosed with cancer each year. Care teams face growing pressure to deliver precise, personalized treatment while managing limited specialist capacity. Greater efficiency can help expand access to care while maintaining the precision needed to deliver prescribed doses to tumors and protect surrounding healthy tissue.

Siemens Healthineers is working with NVIDIA to further develop adaptive radiotherapy through agentic co-planning, patient-specific simulation and real-time computing. NVIDIA Nemotron™ open foundation models are being explored to power agentic co-planning, with the aim of helping oncologists evaluate and refine personalized treatment strategies. The models could then be combined with NVIDIA CUDA®-accelerated dose calculation for rapid patient-specific simulation and the NVIDIA Holoscan platform to connect live sensor data with AI and simulation to support adaptive treatment.

“Adaptive radiotherapy is built on a single principle: treatment should adapt to the patient, not the other way around,” said Arthur Kaindl, head of Varian, the Siemens Healthineers cancer-care business. “We’ve made important advances in precision and adaptation — most recently, with the launch of the Accela system. Our collaboration with NVIDIA builds on that progress, exploring how AI and real-time computing could give clinicians greater speed and insight to make informed decisions, adapt treatment with greater confidence and deliver personalized care to more patients.”

Scientific Agents Advance Drug Discovery and Development
Life sciences is one of the world’s most important scientific frontiers, with global scientific R&D reaching $3.8 trillion and annual pharmaceutical budgets approaching $300 billion.

Scientific agents and autonomous laboratories can help turn more of that investment into evidence, insight and, ultimately, new treatments by connecting design, experimentation and learning in a continuous cycle.

To accelerate discovery and free up scientists for work only they can do, research and laboratory technology companies are using NVIDIA BioNeMo — an open development platform that enables AI-driven biology and drug discovery — alongside Nemotron and other NVIDIA technologies to develop scientific agents and the specialized models and tools that connect drug design, scientific data and laboratory workflows:

Benchling is grounding agents in experimental data, research context and connected scientific workflows.Biolevate is connecting biological data, specialized scientific tools and agentic reasoning across drug discovery and development.Boltz is developing specialized models and tools that scientific agents can use to predict molecular structures and design and evaluate candidates. It is also previewing a scientific agent to plan workflows, apply the right models and interpret results to guide the next experiment.Automata is connecting scientific agents with automated laboratory infrastructure so they can initiate experiments and capture structured, contextualized results through workflows.Genedata’s AI co-scientist will coordinate protein design and testing in the protein design foundry within Danaher’s autonomous lab. The workflow will incorporate RFD4-Proteina, helping scientists use experimental results to guide the next round of designs.Hologen is combining its large medicine models with NVIDIA Nemotron to build AI clinical scientists that help researchers turn imaging and clinical data into insights about patient outcomes to inform clinical trial design.Therna Biosciences is using large language model reasoning to connect experimental evidence and RNA medicine design, helping scientists turn biological insights into therapeutic candidates.  NVIDIA Open Models Streamline Hospital Operations, Expand Access to Specialized Care
Healthcare systems across Europe are working to expand access to specialized care while reducing the administrative demands on already-stretched care teams.

Avelios, Corti, Dedalus, Dawn Health and Sword are also building on NVIDIA Nemotron, powering everything from AI scribes and AI-assisted clinical care to personalized patient support services.

PolyAI is building on NVIDIA Agent Toolkit to speed the path to care through its multilingual dialog deployment with medical software provider Corilus, which has a network spanning more than 70,000 healthcare professionals across Belgium and France.

Apian and VitVio are extending this into the physical world, using NVIDIA Cosmos™ world models and NVIDIA Omniverse™ libraries to build digital twins that monitor and improve hospital operations.

Watch the GTC Berlin keynote from NVIDIA founder and CEO Jensen Huang and explore sessions.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Janette Ciborowski
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; expectations with respect to advances in medicine and life sciences through AI and accelerated computing, including connecting design and experimentation and improving patient care; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

Many of the products and features described herein remain in various stages and will be offered on a when-and-if-available basis. The statements above are not intended to be, and should not be interpreted as a commitment, promise, or legal obligation, and the development, release, and timing of any features or functionalities described for our products is subject to change and remains at the sole discretion of NVIDIA. NVIDIA will have no liability for failure to deliver or delay in the delivery of any of the products, features or functions set forth herein.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08f24e71-de40-4aed-86e2-5e17b88d93bd

Healthcare and Life Sciences Leader Build on NVIDIA NVIDIA today announced collaborations with leading global healthcare and research organizations to a...

News Summary: 

Agile Robots announces Agile ONE SN, a humanoid reference platform built on NVIDIA Isaac GR00T and NVIDIA Jetson Thor with planned integration of the NVIDIA Halos safety stack, giving developers and researchers a complete platform for frontier humanoid development and validation.NVIDIA Isaac platform adds new Isaac OS runtime, Isaac Lab 3.0 for robot learning and open source reference workflows that combine ChatGPT Astra with NVIDIA Isaac and Cosmos on NVIDIA DGX Station to accelerate robot data generation, training and evaluation.Europe’s robotics ecosystem, including leaders like ABB Robotics, Flexion, Hexagon Robotics, Humanoid, KUKA, NEURA Robotics, Sereact and Universal Robots, is building on NVIDIA’s open robotics platform to advance autonomous robotic systems.  BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- GTC Berlin—NVIDIA today announced a major expansion of the NVIDIA Isaac™ open robotics development platform, adding a reference humanoid, datasets and runtime, along with updates to its robot learning framework.

Together, these technologies give developers an integrated path from data to deployment to bring general-purpose robots to the real-world faster.

“General-purpose robotics is advancing at extraordinary speed — the ChatGPT moment for robotics is fast approaching,” said Jensen Huang, founder and CEO of NVIDIA. “With NVIDIA Isaac, our full-stack open robotics platform, we are giving developers the models, data, simulation tools and computing systems to bring physical AI to the world’s largest industries.”

Agile ONE SN — A Frontier Humanoid Reference Platform for Research
Agile Robots announced Agile ONE SN, a full-stack reference humanoid preconfigured with NVIDIA Isaac GR00T and powered by the NVIDIA Jetson Thor™ edge AI platform.

Robotics researchers and developers often struggle to integrate the separate simulation, training and deployment tools needed to take robot skills from development to the physical world. Agile ONE SN unifies these tools and workflows on a single platform, cutting setup time from weeks to days.

Agile ONE SN features:

Agile ONE S humanoid body, standing 1.40 meters (4.59 feet tall) and weighing 40 kilograms (88 pounds), with 31 degrees of freedom and a 3-kilogram payload per arm.Dual WUJI Hand 2 five-finger hands, each offering 20 degrees of freedom, 1kHz force control and tactile sensing for dexterous manipulationNVIDIA Jetson Thor onboard compute, delivering 2,070 FP4 teraflops of compute and 128GB of unified memory for onboard reasoning and real-time control.Multimodal sensing, including head and wrist cameras, lidar sensors and inertial measurement units to help the robot perceive and interact with its surroundings.NVIDIA Isaac GR00T platform, which comprises the GR00T foundation model, a full workflow from data capture to deployment and whole-body control for coordinated movement.Safety capabilities, with planned integration of on-robot safety protocols with the NVIDIA Halos full-stack safety system for robotics. “The breakthrough for humanoids is usefulness at scale: one adaptable machine that learns many skills and works across environments built for people,” said Zhaopeng Chen, founder and CEO of Agile Robots. “Today, Agile Robots introduced Agile ONE SN, a full-stack, open reference humanoid built on NVIDIA Isaac GR00T, powered by Jetson Thor, giving developers a ready system to create, train and validate the capabilities needed to put humanoids to work.”

Scheduled to be available in early 2027, Agile ONE SN is designed to advance frontier humanoid research and development, with interest from leading institutions such as Stanford University and ETH Zurich.

New NVIDIA Technology Accelerate Robot Learning — From Data to Deployment
New NVIDIA technologies help developers generate training data, scale robot learning, build simulation environments and deploy robot applications, reducing time to solution.

SimReady Central Library offers more than 2,000 simulation-ready robotics and factory assets, while the Human 1M Dataset includes diverse human activities, synchronized three-view video and 3D hand tracking. Both are available on Hugging Face, with the full Human 1M Dataset accessible to Cosmos Coalition partners.NVIDIA Isaac Lab 3.0 is now generally available, providing an open source, agent-ready learning framework training and refining robot policies from desktop to data center using multi-GPU workflows and physics engines including Newton and NVIDIA PhysX™.NVIDIA Isaac OS, an open source runtime framework built on NVIDIA Holoscan, connects AI, sensors, controls and robot hardware for deterministic, real-time performance from simulation to physical robots.NVIDIA is releasing three open source reference workflows for NVIDIA DGX Station™ that help developers refine GR00T 1.7 models with reinforcement learning, train dexterous manipulation skills in NVIDIA Isaac Lab and post-train NVIDIA Cosmos™ world models for synthetic data generation using ChatGPT Astra.NVIDIA Halos provides a full-stack safety platform built on NVIDIA IGX Thor™ to help move autonomous vehicles and robots from development to safer real-world deployment at scale. SimReady Central Library on Hugging Face includes simulation-ready assets from Comau, FANUC, ForgeCAD, Franka Robotics, LG Electronics, Palatial, Robotiq, Standard Bots, Universal Robots and Vertiv.

NVIDIA’s open source robot learning reference workflows running on DGX Station will be supported by solutions from 1X, Agile Robots, Humanoid, Maven Robotics, Mentee, MicroAGI, Rhoda, Sereact and Skild AI.

Robotics partners are integrating NVIDIA Halos within their safety architectures, including Agile Robots, Agility, Dexory, FORT Robotics and KION for warehouse robot safety. SICK is evaluating Halos to advance dynamic safety for industrial robots, helping them respond to changing conditions beyond fixed zones.

Advantech and NexCOBOT are developing NVIDIA IGX-based industrial computing platforms, while Reynolds & Moore, Accenture and TÜV SÜD are accelerating the certification process for the safe deployment of industrial physical AI.

European Robotics Leaders Build on NVIDIA Open Technologies
ABB Robotics is integrating NVIDIA Omniverse™ libraries with RobotStudio HyperReality to simulate and virtually commission robotic systems before installation across a wide range of industries. KUKA Group is using Omniverse libraries in its Visual Components FactoryLens to add real-time rendering for factory simulation workflows. Sereact is using Isaac GR00T with Cosmos Transfer to train and post-train its Cortex platform for goods handling, running on Universal Robots industrial robot arms.

Using Jetson Thor, Holoscan Sensor Bridge, Halos and NVIDIA Isaac OS, Humanoid is developing and validating robot behaviors before industrial pilots, Hexagon Robotics is building AEON perception capabilities including teleoperation video, localization, mapping and object pose detection, and Bear Robotics is accelerating KR1 perception and model execution while post-training Isaac GR00T through Kino-2 for warehouse, returns and industrial workflows.

Toyota Material Handling Europe and SoftServe use Omniverse and the NVIDIA Isaac Sim™ framework to develop autonomous material-handling solutions, reducing deployment time by up to 50%. Idealworks is using NVIDIA open models and Jetson to develop memory capabilities for autonomous mobile robots in factories. Analog Devices Inc. (ADI) is using NVIDIA Jetson AGX Orin™ and the cuVSLAM library to build autonomous mobile robots.

Hugging Face and Pollen Robotics are using NVIDIA Isaac Lab, Isaac Sim and Newton to build Microduck, a small, open source robot designed to help developers and students train, modify and share new physical behaviors. Franka Robotics is using NVIDIA NIM™ microservices and Isaac Sim to turn natural-language requests into actions on its Franka FR3 Duo robot system. Bellboy is using Jetson and GR00T to power Billie, its first robot teammate built on Bellboy’s physical AI infrastructure, already deployed at hotels operated by Marriott, Hilton, IHG and OYO.

Flexion is using Isaac Lab and Newton to scale learning for Reflect, its unified robot intelligence model combining reasoning and whole-body movement for complex manipulation across robot bodies. Schaeffler is contributing its actuator technology as an exclusive foundational component for Newton, helping accelerate humanoid robot development with NVIDIA Isaac Lab and Isaac Sim.

NEURA Robotics is using Isaac Sim and Isaac Lab to generate synthetic training data and train robot skills in simulation for Neuron AI, its multimodal foundation model.

Watch the GTC Berlin keynote from Huang and explore sessions.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Paris Fox
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; expectations with respect to advances in general-purpose robotics and the adoption and deployment of physical AI across industries; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

Many of the products and features described herein remain in various stages and will be offered on a when-and-if-available basis. The statements above are not intended to be, and should not be interpreted as a commitment, promise, or legal obligation, and the development, release, and timing of any features or functionalities described for our products is subject to change and remains at the sole discretion of NVIDIA. NVIDIA will have no liability for failure to deliver or delay in the delivery of any of the products, features or functions set forth herein.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/daef9262-990d-4455-b650-dcbe1e2c3cfd

NVIDIA Advances Isaac Platform for General-Purpose Robotics NVIDIA today announced a major expansion of the NVIDIA Isaac open robotics development platform, add...

Self-driving truck company Einride (X3Wy.F) said on Wednesday it would broaden its partnership with Nvidia (NVDA.O) by testing the chipmaker's ​AI reasoning model, Alpamayo, in its self-driving vehicles, ‌aiming to speed up the expansion of autonomous freight services while lowering development costs.

Alpamayo is Nvidia's vision language action model, which can ​interpret driving environments, recommend vehicle actions and explain ​its reasoning.

The Swedish company said it plans to become ⁠the first trucking operator to deploy Alpamayo, adapting the ​model using data collected from its commercial freight operations

Einride said ​the technology could help shorten development cycles and make it easier to extend autonomous driving capabilities to new vehicle types and routes, with ​a live road evaluation planned for the second half ​of 2027

The partnership builds on a broader Nvidia tie-up announced in September ‌covering ⁠autonomous driving, safety systems and AI model training

The companies will initially test Alpamayo in "shadow mode", where the model runs alongside existing systems without controlling the vehicle, allowing its decisions ​to be ​compared with those ⁠of Einride's driving software and human driver

The announcement follows Einride's September rollout of what it ​said was the first cab-less autonomous truck operating ​in ⁠regular service on public roads in Germany, transporting goods for supermarket chain Lidl

Einride was among several European mobility companies highlighted ⁠by ​Nvidia on Wednesday as showcasing autonomous ​vehicle applications on the Nvidia Hyperion platform, alongside Mercedes-Benz, Volkswagen Commercial Vehicles and ​Bolt

AT&T added more than 1 million Advanced Connectivity customers for a second consecutive quarter, driven by net adds across fiber, fixed wireless and postpaid phone

AT&T updates outlook to reflect higher 2026 adjusted EPS* and lower long-term capital investment while remaining on track to reach more than 60 million locations with fiber by end of 2030

, /PRNewswire/ -- AT&T Inc. (NYSE: T) reported third-quarter results, extending the momentum of its investment-led strategy as it delivers advanced connectivity to more consumers and businesses. The Company achieved a record quarter for Advanced Connectivity internet net adds and grew its base of high-value converged relationships by approximately 350,000. The results demonstrate the value of AT&T's differentiated fiber and 5G portfolio as it continues to accelerate growth in consolidated service revenue and improve operating efficiency, driving durable long-term profitability.  

"We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless," said John Stankey, AT&T Chairman and CEO. "Our asset base positions us well for the AI era, with a leading position in fiber – the best technology available. We're building the nation's strongest network, backed by America's Best Guarantee, to deliver faster, more reliable and more accessible connectivity."

Third-Quarter 2026 Consolidated Financial Results1

Revenues totaled $32.3 billion, up 5.3% year over year
Diluted EPS from continuing operations was $0.13, which includes a non-cash impairment charge associated with the Company's held-for-sale Mexico wireless business as well as employee separation charges, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment; adjusted EPS* was $0.65, versus $0.54 in the year-ago quarter
Operating income was $4.1 billion; adjusted operating income* was $7.6 billion
Income from continuing operations was $1.3 billion; adjusted EBITDA* was $12.5 billion, up 5.4% year over year
Cash from operating activities from continuing operations was $10.5 billion, versus $10.2 billion in the year-ago quarter
Capital expenditures related to continuing operations were $5.1 billion; capital investment* was $5.6 billion
Free cash flow* was $5.0 billion, versus $4.9 billion in the year-ago quarter

Third-Quarter 2026 Highlights

Second consecutive quarter with over 1 million Advanced Connectivity customer additions, driven by accelerated internet net adds and solid postpaid phone net adds
Advanced Connectivity service revenue of $23.9 billion, up 6.1% year over year
Advanced Connectivity operating income of $7.6 billion, up 18.9% year over year, with EBITDA* of $12.3 billion, up 7.3%
42.8% of households with AT&T's advanced home internet services also chose AT&T wireless2 
769,000 total consumer and business Advanced Connectivity internet net adds, a record quarter, including 442,000 fiber and 327,000 fixed wireless
379,000 postpaid phone net adds with postpaid phone churn of 0.92%
Reached more than 39 million total consumer and business locations with fiber; the Company remains on track to reach over 40 million total fiber locations by the end of 2026 and more than 60 million locations by the end of 20303 
Returned approximately $4.8 billion to shareholders, including $2.8 billion in common share repurchases

Financial Outlook and Capital Allocation Plan

AT&T is increasing its outlook for 2026 adjusted EPS* and lowering its long-term outlook for capital investment. AT&T maintains its long-term outlook for improved growth in adjusted EBITDA* and adjusted EPS* and higher free cash flow* through 2028, its plans to return $45 billion+ to shareholders during 2026-2028 through dividends and share repurchases, and an expectation that its net debt-to-adjusted EBITDA ratio* will return to a level consistent with its target in the 2.5x range during 2029.

AT&T's long-term outlook is presented on a continuing operations basis and, for 2027-2028, excludes AT&T Mexico, which it has agreed to sell to Grupo Televisa and Fintech Holdings.

The Company's long-term outlook for 2026-2028 includes4:

Service revenue growth in the low-single-digit range annually

Advanced Connectivity service revenue growth in the mid-single-digit range annually, including expected growth of 5%+ in 2026
Legacy service revenue decline of 20%+ in 2026 and be immaterial by the end of 2029

Adjusted EBITDA* growth in the upper portion of the 3% to 4% range in 2026, improving to 5% or better in 2028

Advanced Connectivity EBITDA* growth in the mid-to-high-single-digit range annually, including expected growth of 6%+ in 2026
Legacy EBITDA* expected to turn negative after 2027, until AT&T has substantially eliminated direct costs associated with operating its copper-based network5

Adjusted EPS* in the $2.40 range in 2026 with a double-digit 3-year CAGR through 2028
Capital investment* in the $23 billion to $24 billion range in 2026 and in the $22 billion to $23 billion range annually in 2027 and 2028
Free cash flow* of $18 billion+ in 2026, $19 billion+ in 2027, and $21 billion+ in 2028
Strong capital returns, including plans to maintain its current annualized common stock dividend of $1.11 per share and $24 billion+ of share repurchases, including approximately $10 billion during 2026

Note: AT&T's third-quarter 2026 earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, October 21, 2026. The webcast and related materials, including financial highlights, will be available at investors.att.com.

Detailed Third-Quarter 2026 Consolidated Financial Results

Revenues for the third quarter totaled $32.3 billion, versus $30.7 billion in the year-ago quarter, up 5.3%. This was largely due to growth in Advanced Connectivity wireless service and equipment revenues, and fiber revenues, which include the impact of the Company's first-quarter acquisition of Lumen's mass markets fiber business. Operating revenues in Latin America were also higher due to favorable foreign exchange impacts and growth in postpaid revenues. Offsetting the increases were lower Legacy revenues from lower demand for services as the Company continues to decommission its copper-based network.
Operating expenses were $28.2 billion, versus $24.6 billion in the year-ago quarter. Operating expenses increased primarily due to a non-cash impairment charge associated with the Company's held-for-sale Mexico wireless business of $2.6 billion, employee separation charges, increased wireless equipment costs, as well as higher advertising and higher bad debt expenses driven by subscriber growth. The increase was also due to incremental customer costs related to the acquired mass markets fiber business. These increases were partially offset by cost reductions from transformation initiatives and apportioned legal settlements in the prior-year period. Depreciation expense was also lower year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives.
Operating income was $4.1 billion, versus $6.1 billion in the year-ago quarter. Adjusted operating income* was $7.6 billion, versus $6.6 billion in the year-ago quarter.
Income from continuing operations was $1.3 billion, versus $9.7 billion in the year-ago quarter.
Income from continuing operations attributable to common stock was $0.9 billion, versus $9.3 billion in the year-ago quarter. Earnings per diluted common share from continuing operations was $0.13, versus $1.29 in the year-ago quarter, which included a gain recognized on the sale of the DIRECTV investment. Adjusting for $0.52, which includes a non-cash impairment charge associated with the held-for-sale Mexico wireless business, employee separation charges, and other items, adjusted earnings per diluted common share* was $0.65, versus $0.54 in the year-ago quarter.
Adjusted EBITDA* was $12.5 billion, versus $11.9 billion in the year-ago quarter.
Cash from operating activities from continuing operations was $10.5 billion, versus $10.2 billion in the year-ago quarter, which included voluntary pension plan contributions. The increase also reflects timing of working capital payments.
Capital expenditures related to continuing operations were $5.1 billion, versus $4.9 billion in the year-ago quarter. Capital investment* totaled $5.6 billion, versus $5.3 billion in the year-ago quarter. Cash payments for vendor financing totaled $0.5 billion, versus $0.4 billion in the year-ago quarter.
Free cash flow* was $5.0 billion, versus $4.9 billion in the year-ago quarter.
Total debt was $159.6 billion at the end of the third quarter and net debt* was $149.8 billion, both reflecting a sequential increase related to the closing of the EchoStar spectrum transaction.

AT&T Third-Quarter 2026 Segment Results6

Advanced Connectivity service revenues grew 6.1% year over year, driving growth in operating income of 18.9% and EBITDA* of 7.3%. Internet net adds were 769,000 – comprised of 442,000 fiber and 327,000 fixed wireless – and postpaid phone net adds were 379,000.

Advanced Connectivity

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues

$            29,481

$            27,503

7.2

%

Service

23,902

22,529

6.1

%

Wireless Service

17,764

16,926

5.0

%

Advanced Home Internet

2,975

2,411

23.4

%

Business Fiber and Advanced Connectivity

1,992

1,832

8.7

%

Business Transitional and Other

1,023

1,198

(14.6)

%

Other Service

148

162

(8.6)

%

Equipment

5,579

4,974

12.2

%

Operating Expenses

21,853

21,086

3.6

%

Operating Income

7,628

6,417

18.9

%

Operating Income Margin

25.9

%

23.3

%

260

BP

EBITDA*

$            12,330

$           11,493

7.3

%

EBITDA Margin*

41.8

%

41.8

%

—

BP

Advanced Connectivity segment revenues grew 7.2% year over year, driven by service revenue growth of 6.1% and higher equipment revenue. Wireless service revenue increased due to growth in retail wireless subscribers in underpenetrated categories and converged accounts, and pricing actions that were partially offset by promotional discounts on wireless subscriber additions. Advanced home internet revenue growth, which included an impact from the acquired mass markets fiber business that closed in the first quarter, reflects increases in fiber and AT&T Internet Air revenues. Business fiber and advanced connectivity revenues increased largely due to higher fiber and fixed wireless revenues. Business transitional and other revenues decreased due to lower demand for virtual private network and wholesale services.

Operating expenses were up 3.6% year over year, due to increased wireless equipment costs, higher advertising expense, incremental customer costs related to the acquired mass markets fiber business, and higher bad debt expenses driven by subscriber growth. These increases were partially offset by cost reductions from transformation initiatives. Additionally, depreciation expense decreased year over year from fully depreciated legacy assets, partially offset by ongoing capital spending for strategic initiatives. 

Operating income was $7.6 billion, up 18.9% year over year. EBITDA* was $12.3 billion, up $837 million year over year.

Legacy revenues continued to decline year over year in line with AT&T's goal to decommission the large majority of its copper-based network by the end of 2029.

Legacy

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues

$             1,519

$              2,013

(24.5)

%

Operating Expenses

1,021

1,334

(23.5)

%

Operating Income

498

679

(26.7)

%

Operating Income Margin                            

32.8

%

33.7

%

(90)

BP

EBITDA*

$                498

$                 679

(26.7)

%

EBITDA Margin*

32.8

%

33.7

%

(90)

BP

Legacy segment revenues were down 24.5% year over year, primarily due to lower demand for services as the Company continues to decommission its copper-based network. Operating expenses, which represent direct operating costs, were $1.0 billion, down 23.5% year over year. Expense declines were primarily driven by lower personnel and other costs resulting from the decommissioning of the copper-based network, and lower fulfillment cost amortization, partially offset by favorable vendor settlements in the prior-year period. Operating income and EBITDA* were $498 million, down $181 million year over year.

On October 13, 2026, AT&T entered into an agreement to sell its Mexico wireless business, which is the entirety of the Latin America segment. AT&T applied held-for-sale accounting in continuing operations as of September 30, 2026, and recorded a non-cash impairment charge of $2.6 billion at Corporate and Other that did not impact third-quarter segment results. AT&T will continue to present results within the Latin America segment.

Latin America

Dollars in millions

Third Quarter

Percent

Unaudited

2026

2025

Change

Operating Revenues                                         

$                1,240

$                     1,095

13.2 %

 Service

798

696

14.7 %

 Equipment

442

399

10.8 %

Operating Expenses

1,195

1,073

11.4 %

Operating Income

45

22

— %

EBITDA*

236

199

18.6 %

Latin America segment revenues were up 13.2% year over year, primarily driven by favorable foreign exchange rates and postpaid wireless subscriber growth. Operating expenses were up 11.4% year over year due to unfavorable foreign exchange rates, higher bad debt expenses, and higher equipment costs. Operating income was $45 million, up $23 million year over year. EBITDA* was $236 million, up $37 million year over year.

* Further clarification and explanation of non-GAAP measures and reconciliations to the most comparable GAAP measures can be found in the "Non-GAAP Measures and Reconciliations to GAAP Measures" section of the release and at investors.att.com.

1 With the closing of the acquisition of substantially all of Lumen's Mass Markets fiber business on February 2, 2026, the fiber customer relationships were retained by AT&T and are included in the Company's quarterly results. The recently acquired fiber network assets, including certain fiber network build capabilities, were placed in a wholly owned subsidiary, Forged Fiber 37, which is classified as held-for-sale and reflected as discontinued operations. Upon acquisition, AT&T initially sought an equity partner to co-invest in Forged Fiber 37 and has since agreed to sell a controlling interest in the business.

2 Advanced home internet connections with AT&T wireless is defined as AT&T Fiber and AT&T Internet Air connections that are also primary wireless account holders that subscribe to consumer postpaid phone service. AT&T refers to these customers as converged customers. Convergence rate represents the ratio of converged customers to advanced home internet connections. This 3Q26 convergence metric is presented based on available information and is subject to revision.

3 Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which represent locations served from the recently acquired mass markets fiber business, Gigapower, and other commercial open access providers.

4 The Company's long-term outlook for 2026-2028 is presented on a continuing operations basis and excludes discontinued operations related to Forged Fiber 37. AT&T's long-term outlook for 2027-2028 excludes the held-for-sale Mexico wireless business.

5 The strategy to remove legacy fixed costs across a geography is tied to the decommissioning of infrastructure after all customers have been upgraded to newer services. Gaining approvals could delay this decommissioning beyond 2029.

6 Effective with the Company's first-quarter 2026 reporting, AT&T revised its operating segments to reflect the evolution of its business model to focus on delivering converged advanced connectivity services.

About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

Non-GAAP Measures and Reconciliations to GAAP Measures
Schedules and reconciliations of non-GAAP financial measures cited in this document to the most comparable financial measures under generally accepted accounting principles (GAAP) can be found at investors.att.com and in our Form 8-K dated October 21, 2026. Adjusted EPS, adjusted operating income, EBITDA, EBITDA margin, adjusted EBITDA, free cash flow, and net debt are non-GAAP financial measures frequently used by investors and credit rating agencies. The information below refers only to AT&T's continuing operations and does not include discussion of balances or activity related to discontinued operations.

Adjusted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Non-operational items arising from asset acquisitions and dispositions include the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate; in these cases, we use the actual tax expense or combined marginal rate of approximately 25%.

For 3Q26, adjusted EPS of $0.65 is diluted EPS from continuing operations of $0.13 adjusted for $0.41 impairment charge associated with the held-for-sale Mexico wireless business, $0.09 employee separation charges, and $0.02 for benefit-related, transaction, legal and other items. For 3Q25, adjusted EPS of $0.54 is diluted EPS of $1.29 minus $0.79 gain on the sale of the DIRECTV investment, plus $0.04 benefit-related, transaction, legal and other items. Transaction, legal and other costs include certain legal reserves and settlements that cover extended historical periods, novel theories of liability, and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries.

The Company expects adjustments to 2026 reported diluted EPS from continuing operations to include acquisition-related amortization of approximately $0.3 billion (based on preliminary information), a non-cash mark-to-market benefit plan gain/loss and other items. The Company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. AT&T's projected adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, the Company cannot provide a reconciliation between this projected non-GAAP metric and the most comparable GAAP metric without unreasonable effort.

Adjusted operating income is operating income adjusted for revenues and costs the Company considers non-operational in nature, including items arising from asset acquisitions or dispositions. For 3Q26, adjusted operating income of $7.6 billion is calculated as operating income of $4.1 billion, plus adjustments of $3.5 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For 3Q25, adjusted operating income of $6.6 billion is calculated as operating income of $6.1 billion, plus $435 million of adjustments. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026, and include transaction, legal, and other costs as discussed above.

EBITDA is income from continuing operations plus income tax, interest, and depreciation and amortization expenses minus equity in net income (loss) of affiliates and other income (expense) – net. Adjusted EBITDA is calculated by excluding from EBITDA certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairments, benefit-related gains and losses, employee separation, and other material gains and losses. Adjustments include transaction, legal, and other costs as discussed above.

For 3Q26, adjusted EBITDA of $12.5 billion is calculated as income from continuing operations of $1.3 billion, plus income tax expense of $1.4 billion, plus interest expense of $2.0 billion, plus equity in net income (loss) of affiliates of $(10) million, minus other income (expense) – net of $0.6 billion, plus depreciation and amortization of $5.0 billion, plus adjustments of $3.4 billion, which includes the impairment charge associated with the held-for-sale Mexico wireless business. For 3Q25, adjusted EBITDA of $11.9 billion is calculated as income from continuing operations of $9.7 billion, plus income tax expense of $1.0 billion, plus interest expense of $1.7 billion, plus equity in net income (loss) of affiliates of $(20) million, minus other income (expense) – net of $6.3 billion, plus depreciation and amortization of $5.3 billion, plus adjustments of $425 million. Adjustments for all periods are detailed in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated October 21, 2026.

At the segment level, EBITDA is operating income before depreciation and amortization. EBITDA margin is EBITDA divided by total revenues. For 3Q26, Advanced Connectivity EBITDA of $12.3 billion is operating income of $7.6 billion plus depreciation and amortization of $4.7 billion. For 3Q25, Advanced Connectivity EBITDA of $11.5 billion is operating income of $6.4 billion plus depreciation and amortization of $5.1 billion.

Adjusted EBITDA, Advanced Connectivity EBITDA, and Legacy EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics without unreasonable effort.

Free cash flow for 3Q26 of $5.0 billion is cash from operating activities from continuing operations of $10.5 billion, minus capital expenditures of $5.1 billion and cash paid for vendor financing of $0.5 billion. For 3Q25, free cash flow of $4.9 billion is cash from operating activities of $10.2 billion, minus capital expenditures of $4.9 billion and cash paid for vendor financing of $0.4 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.

Capital investment provides a comprehensive view of cash used to invest in our networks, product developments, and support systems. In connection with capital improvements, we have favorable payment terms of 120 days or more with certain vendors, referred to as vendor financing, which are excluded from capital expenditures and reported as financing activities. Capital investment includes capital expenditures and cash paid for vendor financing ($0.5 billion in 3Q26, $0.4 billion in 3Q25). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the Company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metric without unreasonable effort.

Net debt of $149.8 billion at September 30, 2026, is calculated as total debt (debt maturing within one year and long-term debt) of $159.6 billion, plus debt classified as held-for-sale related to the Mexico wireless business of $1.2 billion, less cash and cash equivalents of $10.8 billion and time deposits (i.e., deposits at financial institutions that are greater than 90 days) of $0.3 billion. Net debt-to-adjusted EBITDA is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.

Discussion and Reconciliation of Non-GAAP Measures 

We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).

On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). Upon acquisition, we initially sought an equity partner to co-invest in Forged Fiber and have since agreed to sell a controlling interest in the business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.

Free Cash Flow

Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

Free Cash Flow and Free Cash Flow Dividend Payout Ratio

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Net Cash Provided by Operating Activities from Continuing Operations

$      10,519

$       10,152

$      28,915

$       28,964

Less: Distributions from DIRECTV classified as operating activities

—

—

—

(1,926)

Less: Cash taxes paid on DIRECTV

—

—

—

251

Less: Capital expenditures

(5,061)

(4,887)

(15,638)

(14,061)

Less: Payment of vendor financing

(505)

(400)

(1,148)

(823)

Free Cash Flow

4,953

4,865

12,129

12,405

Less: Dividends paid

(1,950)

(2,033)

(5,923)

(6,168)

Free Cash Flow after Dividends

$        3,003

$         2,832

$        6,206

$         6,237

Free Cash Flow Dividend Payout Ratio

39.4

%

41.8

%

48.8

%

49.7

%

Cash Paid for Capital Investment

In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems. 

Cash Paid for Capital Investment

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Capital expenditures

$          (5,061)

$          (4,887)

$         (15,638)

$         (14,061)

Payment of vendor financing

(505)

(400)

(1,148)

(823)

Cash paid for Capital Investment

$          (5,566)

$          (5,287)

$         (16,786)

$         (14,884)

EBITDA

Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.

These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.

There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.

EBITDA and Adjusted EBITDA

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Income from Continuing Operations

$            1,306

$            9,677

$          10,563

$          19,230

Additions:

     Income Tax Expense

1,390

976

3,353

3,512

     Interest Expense

1,979

1,700

5,675

5,013

     Equity in Net (Income) Loss of Affiliates

10

20

80

(1,905)

     Other (Income) Expense - Net

(590)

(6,254)

(1,880)

(7,476)

     Depreciation and amortization

4,978

5,317

14,910

15,758

EBITDA

9,073

11,436

32,701

34,132

     Transaction, legal and other costs

44

487

339

615

     Benefit-related (gain) loss 

16

(62)

(60)

(126)

     Asset impairments and abandonments and restructuring

3,372

—

3,658

504

Adjusted EBITDA1

$          12,505

$          11,861

$          36,638

$          35,125

1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items.

Segment EBITDA and EBITDA Margin

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Advanced Connectivity Segment

Operating Income

$        7,628

$         6,417

$      21,826

$       18,495

  Add: Depreciation and amortization

4,702

5,076

14,094

15,084

EBITDA

$      12,330

$       11,493

$      35,920

$       33,579

Total Operating Revenues

$      29,481

$       27,503

$      86,567

$       82,192

Operating Income Margin

25.9

%

23.3

%

25.2

%

22.5

%

EBITDA Margin

41.8

%

41.8

%

41.5

%

40.9

%

Legacy Segment

Operating Income

$           498

$            679

$        1,633

$         2,657

  Add: Depreciation and amortization

—

—

—

—

EBITDA

$           498

$            679

$        1,633

$         2,657

Total Operating Revenues

$        1,519

$         2,013

$        4,919

$         6,583

Operating Income Margin

32.8

%

33.7

%

33.2

%

40.4

%

EBITDA Margin

32.8

%

33.7

%

33.2

%

40.4

%

Latin America Segment

Operating Income

$             45

$              22

$           103

$            111

  Add: Depreciation and amortization

191

177

580

482

EBITDA

$           236

$            199

$           683

$            593

Total Operating Revenues

$        1,240

$         1,095

$        3,637

$         3,120

Operating Income Margin

3.6

%

2.0

%

2.8

%

3.6

%

EBITDA Margin

19.0

%

18.2

%

18.8

%

19.0

%

Adjusting Items

Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and that those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.

The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.   

Adjusting Items

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Operating Expenses

Transaction, legal and other costs1

$                 44

$               487

$               339

$               615

  Benefit-related (gain) loss

16

(62)

(60)

(126)

Asset impairments and abandonments and restructuring

3,372

—

3,658

504

Adjustments to Operations and Support Expenses

3,432

425

3,937

993

   Amortization of intangible assets

80

10

221

28

Adjustments to Operating Expenses

3,512

435

4,158

1,021

Other

 Equity in net income of DIRECTV

—

—

—

(1,926)

  Gain on sale of DIRECTV

—

(5,479)

—

(5,479)

  Benefit-related (gain) loss, impairments of investments and other

(10)

(99)

(71)

(224)

Adjustments to Income from Continuing Operations Before

Income Taxes

3,502

(5,143)

4,087

(6,608)

Tax impact of adjustments

(34)

67

106

(266)

Tax-related items

—

177

365

177

Adjustments to Income From Continuing Operations

$            3,536

$          (5,387)

$            3,616

$          (6,519)

  Preferred stock redemption gain

—

—

—

(90)

Adjustments to Income From Continuing Operations

Attributable to Common Stock

$            3,536

$          (5,387)

$            3,616

$          (6,609)

1  Includes certain legal reserves and settlements that cover extended historical periods, novel theories of liability and/or are unpredictable in
both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of
expected insurance recoveries and are primarily associated with legacy legal matters and cybersecurity events. 

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.

Adjusted Operating Income, Adjusted Operating Income Margin,

Adjusted EBITDA and Adjusted EBITDA Margin

Dollars in millions

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Operating Income

$        4,095

$        6,119

$      17,791

$       18,374

Adjustments to Operating Expenses

3,512

435

4,158

1,021

Adjusted Operating Income

$        7,607

$        6,554

$      21,949

$       19,395

EBITDA

$        9,073

$      11,436

$      32,701

$       34,132

Adjustments to Operations and Support Expenses

3,432

425

3,937

993

Adjusted EBITDA

$      12,505

$      11,861

$      36,638

$       35,125

Total Operating Revenues

$      32,322

$      30,709

$      95,386

$       92,182

Operating Income Margin

12.7 %

19.9 %

18.7 %

19.9 %

Adjusted Operating Income Margin

23.5 %

21.3 %

23.0 %

21.0 %

Adjusted EBITDA Margin

38.7 %

38.6 %

38.4 %

38.1 %

Adjusted Diluted EPS

Third Quarter

Nine-Month Period

2026

2025

2026

2025

Diluted Earnings Per Share (EPS) From Continuing

Operations

$          0.13

$              1.29

$          1.34

$              2.51

     Gain on sale of DIRECTV

—

(0.79)

—

(0.79)

     Equity in net income of DIRECTV

—

—

—

(0.21)

     Restructuring and impairments

0.50

—

0.53

0.05

     Benefit-related, transaction, legal and other items

0.02

0.04

0.04

0.04

     Tax-related items

—

—

(0.05)

—

Adjusted EPS

$          0.65

$              0.54

$          1.86

$              1.60

Year-over-year growth - Adjusted

20.4

%

16.3

%

Weighted Average Common Shares Outstanding with

Dilution (000,000)

6,844

7,169

6,938

7,203

Net Debt to Adjusted EBITDA

Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by adding debt classified as held-for-sale related to our Mexico wireless business and subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt.

Net Debt to Adjusted EBITDA - 2026

Dollars in millions

Three Months Ended

Dec. 31,

March 31,

June 30,

Sept. 30,

Four

Quarters

20251

20261

20261

2026

Adjusted EBITDA

$          11,236

$          11,795

$          12,338

$          12,505

$          47,874

End-of-period current debt

9,483

End-of-period long-term debt

150,144

Total End-of-Period Debt

159,627

Add: Mexico held-for-sale finance leases

1,209

Less: Cash and Cash Equivalents

10,767

Less: Time Deposits

250

Net Debt Balance

149,819

Annualized Net Debt to Adjusted EBITDA Ratio

3.13

 1 As reported in AT&T's Form 8-K filed July 22, 2026.

Net Debt to Adjusted EBITDA - 2025

Dollars in millions

Three Months Ended

Dec. 31,

March 31,

June 30,

Sept. 30,

Four

Quarters

20241

20251

20251

20251

Adjusted EBITDA

$          10,791

$          11,533

$          11,731

$          11,861

$          45,916

End-of-period current debt

11,378

End-of-period long-term debt

128,090

Total End-of-Period Debt

139,468

Less: Cash and Cash Equivalents

20,272

Less: Time Deposits

350

Net Debt Balance

118,846

Annualized Net Debt to Adjusted EBITDA Ratio

2.59

1 As reported in AT&T's Form 8-K filed July 22, 2026.

© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

SOURCE AT&T

NEW YORK, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that it is investigating Barry Diller’s bid to buy MGM Resorts International (NYSE:MGM). MGM is incorporated in Delaware.

Barry Diller is a member of MGM’s board of directors. People, Inc. (“People,” f/k/a/ IAC, Inc.), a company that Diller founded and controls, is MGM’s largest single stockholder. On June 1, 2026, People made an unsolicited bid to buy the remaining MGM stock for $48.30 per share.

If you are a current shareholder of MGM, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/mgm-resorts-investigation.

Key Details of the MGM ($MGM) Investigation:

Investigation Overview: Breaches of Fiduciary Duty in connection with Barry Diller’s offer to acquire the remaining stock of MGM for $48.30 per shareAction: Contact BFA Law to discuss your rights Why is the MGM Transaction being Investigated?

As a director, Diller owes fiduciary duties to MGM and its stockholders. People also recently entered a governance agreement with MGM that gave People the right to designate two MGM directors going forward. Because Diller “stands on both sides” of the proposed deal, and because other MGM fiduciaries could potentially receive benefits that other stockholders do not receive, these facts create a create conflicts of interest under Delaware law. If MGM and Diller reach an agreement, they must comply with Delaware’s strict requirements for “cleansing” these conflicts and ensuring the deal is fair to MGM’s stockholders.

In a news release on June 1, MGM stated that the board of directors “will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders.”  

BFA is investigating whether the potential agreement complies with Delaware law.

Click here for more information:

https://www.bfalaw.com/cases/mgm-resorts-investigation

What Can You Do?

If you are a current holder of MGM stock, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/mgm-resorts-investigation

Or contact:

Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/mgm-resorts-investigation

Attorney advertising. Past results do not guarantee future outcomes.

New platform enables customers and partners to easily and securely create, extend, deploy, and manage industry-specific AI agents and teams of agents across the enterprise

AUSTIN, Texas, /PRNewswire/ -- Oracle today announced Oracle AI Agent Studio1 for Industry Applications, a no-code and low-code environment for creating, testing, orchestrating, deploying, and managing AI agents and workflows for industry-specific business processes. Building on Oracle AI Agent Studio for Fusion Applications, the new offering enables customers and partners to build and extend agents, leveraging existing application data, tools, and business processes, and embed these agents into daily workflows to reduce manual effort and improve productivity.

"AI agents create value when they can work within the processes, data, and controls that define how an industry operates," said Simon de Montfort Walker, executive vice president, Industry Applications, Oracle. "Oracle AI Agent Studio for Industry Applications gives customers and partners the building blocks for those processes, along with the flexibility to adapt, test, and manage agents for their own needs. This approach helps organizations focus their time and effort on areas that will help them grow their business and serve their customers more effectively."

Building and operating AI agents around business outcomes

Oracle AI Agent Studio for Industry Applications helps accelerate agent development with prebuilt agents, workflows, templates, and reusable tools designed around industry-specific business processes. With the platform, customers and partners can adapt these capabilities to their business needs and configure agents around their own data, decisions, roles, and policies. Users can also test and debug agents before deployment and monitor execution, performance, and AI-unit consumption as adoption grows.

The platform provides customers and partners with:

Reusable industry foundations: Build upon prebuilt industry agents, workflows, templates, and tools to accelerate agent development and reduce the need to create each use case from scratch.

Natural-language and visual authoring: Create and extend agents using natural language instructions and visual workflow editing, including defining roles, goals, tools, policies, and operating context.

Cross-application orchestration: Coordinate supported agents, tools, and services across Oracle Industry and Oracle Fusion Cloud Applications to support multi-step business processes and workflows across applications.

Model Context Protocol (MCP) support: Connect agents to approved Oracle Industry Application tools and capabilities through MCP servers for reuse across multiple use cases.

Choice of generative AI models: Select from supported models available through Oracle Cloud Infrastructure (OCI) Enterprise AI based on the requirements of a particular agent or use case.

Testing and debugging: Test agent responses, actions, and tool use before deployment. Trace workflow execution, inspect inputs and outputs, evaluate results, identify issues, and retest changes.

Enterprise security controls: Apply guardrails and help ensure agents operate within configured permissions, policies, and organizational roles, while managing access to applications, data, and tools.

Deployment and lifecycle management: Move agents from development and testing toward production and manage them throughout their lifecycle, with deployment and runtime-management capabilities available for supported use cases.

Monitoring and observability: Monitor agent execution metrics, performance, reliability, usage, and AI-unit consumption to manage adoption with greater visibility and control.

"As organizations continue to operationalize AI across their enterprise, the challenge is AI agents are only as useful as the data, tools, and approvals they can reach, and connecting all three reliably is where most efforts stall," said Eric Newmark, GVP and General Manager of Enterprise Business Applications, IDC.  "Oracle AI Agent Studio for Industry Applications goes after that friction directly. It lets teams build, test, and manage agents inside the industry workflows they already run. That is what turns adoption from a pilot into something practical, and something that scales."

Delivering industry AI agents designed around specific business processes

Designed to work with Oracle Industry Applications, Oracle Fusion Applications, and OCI, Oracle AI Agent Studio for Industries coordinates agents and multi-agent workflows across supported applications and connects them with relevant application data, tools, services and pre-built agents for supported use case. This integrated approach helps reduce the need to move data or build point-to-point integrations for individual supported use cases, while enabling agents to operate within configured access controls and policies.

Oracle AI Agent Studio for Industry Applications supports a broad range industry-specific use cases, including engineering and construction, retail, finance, restaurants, government, utilities, communications, and hospitality.

For example, a construction and engineering firm can use the platform to identify risks to schedule milestones, determine related field issues, and propose specific mitigation steps for project teams to execute, helping teams take action earlier to protect project timelines.

Likewise, a retail customer or partner can leverage Oracle's retail industry applications and agents to extend and customize areas such as images,  product information, and product and catalog management. And financial services customers and partners can leverage and extend agents in areas such as payments, affordability, analysis, and customer preferences.

What partners have to say:

"Across sectors, we're seeing growing demand for AI agents that reflect the unique realities of an industry, its processes, data and operating environment. As organizations move from AI experimentation to value realization, industry context will be critical," said Nick Yoko, Oracle AI Lead at KPMG. "Oracle AI Agent Studio for Industry Applications reflects an important shift toward more industry-specific AI, creating opportunities for clients to apply agents to the business challenges and opportunities that matter most."

"For organizations to realize the value of AI agents, they need confidence in how those agents make decisions, access data, and operate within business controls," said Kevin Sullivan, Global and US Oracle Alliance Leader, PwC. "Oracle AI Agent Studio for Industry Applications brings industry context together with testing, monitoring, and configured access controls, helping organizations build governance into their workflows as they expand AI adoption."

Learn more at: https://www.oracle.com/industries/ai-agent-studio/

1: Oracle Industries AI Agent Studio is planned to be available within the next 12 months, in the U.S. with expansion to all supported OCI Enterprise AI regions planned over time.

About Oracle

Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

Trademarks

Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company--ushering in the new era of cloud computing.

SOURCE Oracle

Separation will unlock potential of both companies to pursue distinct growth and value-creation strategies The new Nutrition company will be a global leader in the rapidly growing healthy nutrition market, with a portfolio of iconic, category-leading brands, including Similac, PediaSure, Pedialyte, Glucerna and Ensure Abbott will have accelerated sales growth and an expanded margin profile Abbott intends to separate its Nutrition business through a tax-free distribution to Abbott shareholders Separation expected to be completed by the end of 2027 , /PRNewswire/ -- Abbott (NYSE: ABT), the global healthcare leader, today announced its intention to separate its Nutrition business into an independent, publicly traded company that will be a global leader in the rapidly expanding healthy nutrition market with approximately $8.5 billion in annual sales and a portfolio of iconic brands.

"As we continue to shape Abbott for the future, this separation will benefit both companies, setting each one up for maximum success in its respective market," said Robert B. Ford, chairman and chief executive officer, Abbott. "Our Nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities. At the same time, Abbott's core higher-growth, innovation-driven portfolio of medical devices, diagnostics and established medicines has compelling growth opportunities to improve the health and lives of people around the world."

With different investment identities and requirements, growth profiles, and innovation cycles, both companies will benefit from resource and capital allocation strategies aligned to their distinct business models.

Nutrition: A leading healthy nutrition company
The Nutrition company will be a global leader in healthy nutrition with approximately $8.5 billion in annual sales. With about 16,000 employees and 14 manufacturing sites, it will have scale across developed and emerging markets and will be well positioned to capitalize on consumer health and nutrition trends, including metabolic health, prevention and wellness.

As an independent company, it will be better positioned to focus its resources more strategically across innovation, commercial activities and key initiatives that advance performance and long-term value creation.

Its portfolio of iconic global brands with leadership positions across infant, pediatric, medical and adult nutrition is highly differentiated in its competitive set and backed by evidence-based scientific research and healthcare professional recommendation, which drives durable organic growth at scale across channels. Abbott's Nutrition portfolio is anchored by category-leading brands, including Ensure, the world's No. 1 adult nutrition supplement drink; PediaSure, the world's No. 1 pediatric nutrition supplement; Glucerna, the world's No. 1 diabetes management nutrition brand; and Similac, the No. 1 infant formula brand in the U.S.

The Nutrition business has continued to innovate its portfolio – underpinned by consumer preferences and trends – with 10 product launches in the first half of 2026, including a high-protein Ensure shake featuring 42 grams of protein, the first and only ready-to-feed liquid infant formula made with whole milk in the U.S. under the Similac brand, and dye-free Pedialyte products.

Daniel Salvadori, executive vice president and group president, Established Pharmaceuticals and Nutritional Products, will become chief executive officer of the new Nutrition company. Mr. Salvadori joined Abbott in 2014 and has successfully led complex international businesses, as senior vice president, Established Pharmaceuticals, Latin America and executive vice president of Nutritional Products before being appointed to his current position in 2021. Prior to Abbott, he held leadership roles at CFR Pharmaceuticals and Sandoz.

Abbott: A fast-growing global health leader
Abbott will remain one of the largest, fastest growing and most diversified healthcare companies with unique breadth and scale. After the transaction, Abbott will have sales of approximately $42 billion and market-leading positions in cardiovascular and neuromodulation devices; biowearables; laboratory, point-of-care and cancer diagnostics; and established medicines. Abbott's portfolio helps people manage a range of conditions and enable informed and earlier clinical decision making.

The company remains aligned with evolving and durable healthcare trends, including an aging population, growing prevalence of chronic disease, personalized treatment and greater demand for earlier diagnosis so people can stay and get healthy. Abbott will maintain a balanced portfolio of products and payors with a strong presence across both developed and emerging markets.

Transaction Details
Abbott intends to separate the Nutrition business through a distribution of shares of the independent Nutrition company to Abbott shareholders. Upon completion of the separation, Abbott shareholders will own shares in both Abbott and the independent Nutrition company.

Abbott expects the combined dividend to be paid by Abbott and the new Nutrition company to be equal to Abbott's dividend at the time of separation. The transaction is intended to qualify as a tax-free separation for U.S. federal income tax purposes.

Abbott expects to complete the transaction by the end of 2027, subject to customary conditions, including regulatory approvals, the effectiveness of a registration statement on Form 10 and final approval by the Abbott Board of Directors.

The planned separation will not impact Abbott's guidance for 2026 or the guidance for 2027 that Abbott plans to provide in January. Abbott expects to incur one-time charges related to the transaction during the periods preceding the separation, to be quantified at a later date.

The Nutrition business will continue to operate as part of Abbott throughout the separation process.

Goldman Sachs & Co. LLC is serving as financial advisor to Abbott, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Abbott.

Abbott Conference Call
Abbott will discuss the transaction on its third-quarter earnings conference call today at 8 a.m. Central time (9 a.m. Eastern time). The webcast will be accessible through Abbott's Investor Relations website at www.abbottinvestor.com. An archived edition of the call will be available later today.

Frequently Asked Questions

Why is Abbott intending to separate its nutrition business?
Abbott has a successful history of shaping the company through internal and external actions that deliver on evolving growth opportunities.

We regularly examine the makeup of the company, and it is clear that the Nutrition business has a unique opportunity to capitalize on consumer preferences and trends in healthy nutrition. As an independent company, it will be better positioned to focus its resources more strategically across innovation, commercial activities and key initiatives that advance performance and long-term value creation. At the same time Abbott will focus on its core higher-growth, innovation-driven portfolio of medical devices, biowearables, diagnostics and established pharmaceuticals, which has compelling opportunities to expand health impact for people around the world.

With different investment identities and requirements, growth profiles and innovation cycles, both companies will benefit from resource and capital allocation strategies aligned to their distinct business models.

What will the profile of the new Nutrition company be after the separation?
The new Nutrition company will be a global leader in healthy nutrition with approximately $8.5 billion in annual sales, about 16,000 employees and 14 manufacturing sites. It will have a portfolio of household brands across infant, pediatric, medical and adult nutrition, including Similac, PediaSure, Pedialyte, Glucerna and Ensure. The new Nutrition company will be differentiated by its product offerings, which are backed by evidence-based scientific research and healthcare professional recommendation, as well as its presence and scale across both developed and fast-growing emerging markets.

What will Abbott look like after the separation? 
Abbott remains one of the largest, fastest growing and most diversified healthcare companies with unique breadth and scale. It will have sales of approximately $42 billion, about 106,000 employees and market-leading positions in cardiovascular and neuromodulation devices; biowearables; laboratory, point-of-care and cancer diagnostics; and established medicines. This portfolio helps people stay and get healthy, manage chronic conditions and enable informed and earlier clinical decision making.

When will the separation be complete?
Abbott expects to complete the transaction by the end of 2027, subject to customary conditions, including regulatory approvals, the effectiveness of a registration statement on Form 10 and final approval by the Abbott Board of Directors.

About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X, and YouTube.

Private Securities Litigation Reform Act of 1995 — A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995, including statements regarding the planned separation of the Nutrition business from Abbott and the expected financial results and prospects of Abbott and the new Nutrition company following the separation. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements, and there is no assurance as to the timing of the planned separation or whether it will be completed. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2025, and are incorporated herein by reference. Additional factors relating to the planned separation, including the ability to satisfy the conditions necessary to complete the transaction, obtain applicable regulatory approvals and tax rulings, successfully separate the businesses, and realize the expected benefits of the transaction, may also cause actual results to differ materially from those indicated in the forward-looking statements. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

SOURCE Abbott

, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced results for the third quarter 2026.  All results in this release reflect only continuing operations and period-to-period comparisons are year-over-year unless otherwise noted.

Key Third Quarter 2026 Results

Net earnings were $1.2 billion, or $1.71 per diluted common share, up 34.5% year-over-year.
Non-GAAP adjusted diluted net earnings per common share grew 11.5% to $2.11.
Revenues increased 8.5% year-over-year to $6.6 billion.
Non-GAAP core revenue excluding respiratory revenue increased 5.5% year-over-year and non-GAAP core revenue increased 3.0% year-over-year.
Operating cash flow was $1.9 billion and non-GAAP free cash flow was $1.6 billion.

Julie Sawyer Montgomery, President and Chief Executive Officer, stated, "We delivered better-than-expected third quarter revenue, earnings and cash flow, and are encouraged by the improving trends we saw across our end markets.  The continued acceleration in core revenue growth excluding respiratory revenue, together with DBS-driven execution drove double-digit adjusted EPS growth and underscored our ability to convert improving demand into strong financial performance."

Ms. Sawyer Montgomery continued, "Danaher has built a strong foundation, and the time I've spent with our teams and customers during my transition into the CEO role has only reinforced my conviction in the opportunities ahead.  Looking forward, the opportunity for Danaher is clear: to become the defining leader in Life Sciences and Diagnostics–a company that unambiguously gains share, delivers sustainable profitable growth, and helps our customers improve outcomes for patients around the world."

Fourth Quarter and Full Year 2026 Outlook

Danaher Corporation (the "Company") does not reconcile non-GAAP forecasted core sales growth, adjusted operating profit margin and adjusted diluted net earnings per common share to their respective, comparable measure prepared in accordance with U.S. generally accepted accounting principles (GAAP) because (except for estimated amortization of acquisition-related intangible assets of $0.5 billion for the fourth quarter and $1.9 billion for the year ending December 31, 2026 and the estimated impact of foreign currency on sales, which is estimated to be flat in the fourth quarter and increase sales by 1.0% in the full year, assuming the currency exchange rates in effect as of September 25, 2026) the additional elements that would be reflected in any such GAAP measures (such as the impact of currency exchange rates on profitability, future acquisitions, divested product lines, discrete tax adjustments, impairments, gains and losses on investments and the outcome of legal proceedings) are difficult to predict and estimate and are often dependent on future events that may be uncertain or outside of our control.  The impact of these additional elements could be material to our results computed in accordance with GAAP.

For the fourth quarter 2026, the Company anticipates that non-GAAP core revenue excluding respiratory revenue will increase in the 4.0% to 5.0% range year-over-year.  We expect respiratory revenue to be an approximately 150 basis point headwind, resulting in core revenue growth of approximately 3.0%.

For full year 2026, the Company is increasing its full year adjusted diluted net earnings per common share guidance to a range of $8.57 to $8.62 versus previous guidance of $8.45 to $8.60.

Conference Call and Webcast Information

Danaher will discuss its third quarter results and financial guidance for the fourth quarter and full year 2026, including as applicable key assumptions with respect thereto, during its investor conference call today starting at 8:00 a.m. ET.  The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations."  A replay of the webcast will be available in the same section of Danaher's website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.

The conference call can be accessed by dialing 800-267-6316, within the U.S. or +1 203-518-9783 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (Conference ID: DHRQ326).  A replay of the conference call will be available shortly after the conclusion of the call and until November 4, 2026.  You can access the replay dial-in information on the "Investors" section of Danaher's website under the subheading "Events & Presentations."

ABOUT DANAHER

Danaher is a leading global life sciences, diagnostics and biotechnology innovator committed to advancing the power of science and technology to improve human health. Through a connected ecosystem of industry-leading businesses, the Company works closely with customers to solve many of their most complex scientific challenges by accelerating discovery, development and the delivery of life-changing therapies. Powered by the Danaher Business System and 60,000 associates worldwide, the Company strives for continuous improvement, operational excellence and Innovation at the Speed of Life. Explore more at www.danaher.com.

NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS

In addition to the financial measures prepared in accordance with GAAP, this earnings release also contains non-GAAP financial measures.  Calculations of these measures, explanations of what these measures represent and the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, where applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Danaher's website (www.danaher.com).

FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION

Statements in this release that are not strictly historical, including the statements regarding the Company's anticipated financial results for the fourth quarter and full year 2026, the Company's expectations regarding business trends, opportunities, market share gains, sustainable profitable growth and improved patient outcomes and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws.  There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements.  These factors include, among other things: the impact of the tariffs and related actions implemented by the U.S. and other countries, the impact of our debt obligations (including debt we incurred to finance the acquisition of Masimo Corporation)  on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, the impact of global health crises, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (in each case, including with respect to our acquisition of Masimo Corporation), including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, security breaches or other disruptions of our information technology systems or violations of data privacy laws, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation, regulatory proceedings and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government with respect to our production capacity in times of national emergency or with respect to intellectual property/production capacity developed using government funding, risks relating to product, service or software defects, product liability and recalls, risks relating to our manufacturing operations, the impact of climate change, legal or regulatory measures to address climate change and other sustainability topics and our ability to address regulatory requirements or stakeholder expectations relating to climate change and other sustainability topics, risks relating to fluctuations in the cost and availability of the supplies we use (including commodities) and labor we need for our operations, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, the impact of deregulation on demand for our products and services, labor matters and our ability to recruit, retain and motivate talented employees, U.S. and non-U.S. economic, political, geopolitical, legal, compliance, social and business factors (including the impact of elections, regulatory and policy changes or uncertainty, government shutdowns and  military conflicts such as the conflict in the Middle East), disruptions and other impacts relating to man-made and natural disasters, inflation and the impact of our By-law exclusive forum provisions.  Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2026.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

This press release may include descriptions of certain products and/or devices that have applications submitted and pending for certain regulatory approvals, or are available only in certain markets.

DANAHER CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

($ and shares in millions, except per share amounts)

(unaudited)

Three-Month Period Ended

Nine-Month Period Ended

September 25, 2026

September 26, 2025

September 25, 2026

September 26, 2025

Sales

$           6,554

$           6,053

$          18,770

$          17,730

Cost of sales

(2,717)

(2,530)

(7,731)

(7,173)

Gross profit

3,837

3,523

11,039

10,557

Operating costs:

Selling, general and administrative
expenses

(2,159)

(1,991)

(6,091)

(6,209)

Research and development
expenses

(433)

(378)

(1,232)

(1,160)

Operating profit

1,245

1,154

3,716

3,188

Nonoperating income (expense):

Other income (expense), net

(9)

(14)

(85)

(135)

Interest expense

(135)

(67)

(305)

(210)

Interest income

31

3

119

17

Earnings before income taxes

1,132

1,076

3,445

2,860

Income taxes

75

(168)

(339)

(443)

Net earnings from continuing operations

1,207

908

3,106

2,417

Earnings from discontinued operations,
net of income taxes

28

—

28

—

Net earnings

$           1,235

$              908

$           3,134

$           2,417

Net earnings per common share from
continuing operations:

Basic

$             1.71

$             1.28

$             4.40

(a)

$             3.38

Diluted

$             1.71

$             1.27

$             4.38

(a)

$             3.37

Net earnings per common share from
discontinued operations:

Basic

$             0.04

$                —

$             0.04

$                —

Diluted

$             0.04

$                —

$             0.04

$                —

Net earnings per common share:

Basic

$             1.75

$             1.28

$             4.44

(a)

$             3.38

(a)

Diluted

$             1.75

$             1.27

$             4.42

(a)

$             3.37

(a)

Average common stock and common
equivalent shares outstanding:

Basic

703.8

710.7

705.7

714.5

Diluted

706.8

713.7

708.5

717.9

(a)

Net earnings per common share amounts for the relevant three-month periods do not add to the nine-month period amount due to rounding.

This information is presented for reference only.  A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website (www.danaher.com).

DANAHER CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Diluted Net Earnings Per Common Share from Continuing Operations and Adjusted Diluted Net Earnings Per
Common Share from Continuing Operations

Three-Month Period Ended

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Diluted Net Earnings Per Common Share From
Continuing Operations (GAAP)

$           1.71

$           1.27

$           4.38

$           3.37

Amortization of acquisition-related intangible
assets A

0.73

0.61

1.99

1.77

Fair value net (gains) losses on investments B

0.02

0.02

0.14

0.21

Acquisition-related items C

0.12

—

0.29

—

Impairments D

0.07

0.14

0.07

0.76

Special equity awards compensation expense E

0.02

—

0.02

—

Settlement of acquisition-related contingency F

(0.01)

—

(0.01)

—

Gain on a product line disposition G

—

—

—

(0.01)

Tax effect of the above adjustments H

(0.17)

(0.15)

(0.43)

(0.54)

Discrete tax adjustments I

(0.37)

—

(0.34)

0.02

Rounding

(0.01)

—

—

(0.01)

Adjusted Diluted Net Earnings Per Common
Share From Continuing Operations (Non-GAAP)

$           2.11

$           1.89

$           6.11

$           5.57

Notes to Reconciliation of GAAP to Non-GAAP Financial Measures

A 

Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above):

Three-Month Period Ended

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Pretax

$            513

$            433

$          1,410

$          1,269

After-tax

426

359

1,170

1,053

B

Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above):

Three-Month Period Ended

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Pretax

$             13

$             15

$             97

$            149

After-tax

10

12

74

113

C

Fair value adjustments to inventory in the three and nine-month periods ended September 25, 2026 ($84 million and $130 million pretax as reported in this line item, $67 million and $103 million after-tax, respectively), transaction costs deemed significant and pre-acquisition share-based and change-in-control payments in each case related to the acquisition of Masimo Corporation in the nine-month period ended September 25, 2026 ($79 million pretax as reported in this line item, $74 million after-tax).  The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company's larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period.

D

Impairment charges related to a facility in the Biotechnology segment recorded in both the three and nine-month periods ended September 25, 2026 ($52 million pretax as reported in this line item, $39 million after-tax), technology and other intangible assets in the Biotechnology segment recorded in both the three and nine-month periods ended September 26, 2025 ($86 million pretax as reported in this line item, $58 million after-tax), a trade name in the Diagnostics segment recorded in both the three and nine-month periods ended September 26, 2025 ($15 million pretax as reported in this line item, $12 million after-tax), a trade name in the Life Sciences segment recorded in the nine-month period ended September 26, 2025 ($432 million pretax as reported in this line item, $328 million after-tax) and a facility in the Biotechnology segment recorded in the nine-month period ended September 26, 2025 ($15 million pretax as reported in this line item, $11 million after-tax).

E

Compensation expense in the three and nine-month periods ended September 25, 2026 related to special long-term growth equity awards granted to the Company's founders, certain executive officers and other key leaders in the third quarter of 2026 ("special equity awards") ($14 million pretax as reported in this line item, $14 million after-tax).  These awards have vesting terms and amounts that differ from the Company's typical annual equity grants.

F

Settlement of an acquisition-related contingency in the Life Sciences segment in the three and nine-month periods ended September 25, 2026 ($8 million pretax as reported in this line item, $6 million after-tax).

G

Gain on a product line disposition in the nine-month period ended September 26, 2025 ($9 million pretax as reported in this line item, $7 million after-tax).

H

This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table.  In addition, the footnotes above indicate the after-tax amount of each individual adjustment item.  Danaher estimates the tax effect of each adjustment item by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

I

Discrete tax adjustments and other tax-related adjustments for the three-month period ended September 25, 2026, include the impact of net discrete tax benefits of $263 million related primarily to the release of reserves for uncertain tax positions resulting from audit settlements.  Discrete tax adjustments and other tax-related adjustments for the nine-month period ended September 25, 2026, include the impact of net discrete tax benefits of $242 million related primarily to the release of reserves for uncertain tax positions resulting from audit settlements and the expiration of statutes of limitations during the nine-month period, partially offset by changes in estimates associated with prior period uncertain tax positions.  There were no net discrete tax adjustments for the three-month period ended September 26, 2025, as a valuation allowance recorded on certain foreign operating losses was offset by benefits from the remeasurement of deferred taxes in a jurisdiction which enacted a tax rate change.  Discrete tax adjustments and other tax-related adjustments for the nine-month period ended September 26, 2025, include the impact of net discrete tax charges of $12 million related primarily to a valuation allowance recorded on certain foreign operating losses and changes in uncertain tax positions, partially offset by the remeasurement of deferred taxes in a jurisdiction which enacted a tax rate change and the release of reserves for uncertain tax positions due to the expiration of statutes of limitations.

Sales Growth by Segment, Core Sales Growth (Decline) by Segment and Core Sales Growth Excluding
Respiratory Testing

% Change Three-Month Period Ended September 25, 2026 vs. Comparable 2025
Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

8.5 %

0.5 %

4.0 %

17.0 %

Impact of:

Acquisitions/divestitures

(6.5) %

— %

— %

(16.5) %

Currency exchange rates

— %

0.5 %

0.5 %

— %

Tariff refunds to customers

1.0 %

4.0 %

— %

— %

Core sales growth (non-GAAP)

3.0 %

5.0 %

4.5 %

0.5 %

Impact of respiratory testing

2.5 %

6.5 %

Core sales growth excluding respiratory
testing (non-GAAP)

5.5 %

7.0 %

% Change Nine-Month Period Ended September 25, 2026 vs. Comparable 2025 Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

6.0 %

5.0 %

4.5 %

7.5 %

Impact of:

Acquisitions/divestitures

(3.0) %

— %

— %

(7.0) %

Currency exchange rates

(1.5) %

(1.5) %

(1.0) %

(1.0) %

Tariff refunds to customers

0.5 %

1.0 %

— %

— %

Core sales growth (decline) (non-GAAP)

2.0 %

4.5 %

3.5 %

(0.5) %

Impact of respiratory testing

2.5 %

5.5 %

Core sales growth excluding respiratory
testing (non-GAAP)

4.5 %

5.0 %

Note: Beginning with the Company's Quarterly Report on Form 10-Q for the third quarter of 2026, the Company is excluding from core sales growth and core sales excluding respiratory testing the impact, if any, of tariff refunds received by the Company (related to tariff payments made in prior periods) that are returned or to be returned to customers ("tariff refunds to customers").

Non-GAAP Forward-Looking Information

% Change Three-
Month Period Ending
December 31, 2026
vs. Comparable 2025
Period

% Change Year
Ending December 31,
2026 vs. Comparable
2025 Period

Core sales growth (non-GAAP)

Biotechnology

+Mid-single digit

+Mid-single digit

Life Sciences

+4.0% - +5.0%

+3.0% - +4.0%

Diagnostics

+Up slightly

~Flat

Total Company

~+3.0%

~+2.5%

Impact of respiratory testing

~+150 basis points

+Low-single digit

Core sales growth excluding respiratory testing (non-GAAP)

+4.0% - +5.0%

+Mid-single digit

Note: For the impact of respiratory testing, a positive amount represents a year-over-year headwind to core sales growth, and a negative amount represents a year-over-year tailwind to core sales growth.

Three-Month Period
Ending

December 31, 2026

Year Ending

December 31, 2026

Adjusted operating profit margin (non-GAAP)

 ~29.5  %

Adjusted diluted net earnings per common share from continuing operations
(non-GAAP)

$8.57 - $8.62

Other Forward-Looking Information

Three-Month Period
Ending

December 31, 2026

Year Ending

December 31, 2026

Impact of currency exchange rates on sales J

~Flat

~+1.0%

Amortization of acquisition-related intangible assets ($ in millions)

~$(500)

~$(1,900)

Corporate expense K ($ in millions)

~$(90)

~$(355)

Interest expense, net L ($ in millions)

~$(120)

~$(305)

Effective tax rate

 ~17.0  %

 ~17.0  %

Average adjusted diluted shares (in millions)

~707

~708

J

Impact of currency exchange rates on sales for the fourth quarter and full year 2026 assumes the currency exchange rates in effect as of September 25, 2026.

K

Corporate expense represents the operating profit (GAAP) for the Company's Other segment, which consists of unallocated corporate costs and other costs not considered part of management's evaluation of reportable segment operating performance, less approximately $200 million in both periods of stock-based compensation expense associated with the special equity awards, which is inclusive in both periods of a $185 million charge related to certain of the special equity awards that have been canceled.

L

Interest expense, net is defined as interest expense net of interest income.  This line item is an assumption rather than a forecast.  The estimated interest expense, net is calculated assuming the currency exchange rates in effect as of September 25, 2026 are to prevail throughout the remainder of the period indicated and no change in the amount of commercial paper outstanding.

Historical Sales (Decline) Growth, Core Sales Growth and Core Sales Growth Excluding Respiratory Testing

% Change Three-Month Period Ended vs. Comparable 2024
Period

% Change
Year Ended
December 31,
2025 vs.
Comparable
2024 Period

% Change Three-Month Period
Ended vs. Comparable 2025
Period

March 28, 2025

June 27, 2025

September 26,
2025

December 31,
2025

March 27, 2026

June 26, 2026

Total sales (decline)
growth (GAAP)

(1.0) %

3.5 %

4.5 %

4.5 %

3.0 %

3.5 %

5.5 %

Impact of:

Acquisitions
/divestitures

(0.5) %

— %

— %

0.5 %

— %

— %

(1.5) %

Currency
exchange rates

1.5 %

(2.0) %

(1.5) %

(2.5) %

(1.0) %

(3.0) %

(1.0) %

Core sales growth
(non-GAAP)

— %

1.5 %

3.0 %

2.5 %

2.0 %

0.5 %

3.0 %

Impact of
respiratory testing

1.0 %

0.5 %

(0.5) %

1.5 %

0.5 %

2.5 %

1.5 %

Core sales growth
excluding
respiratory testing
(non-GAAP)

1.0 %

2.0 %

2.5 %

4.0 %

2.5 %

3.0 %

4.5 %

Note: For the impact of respiratory testing, a positive amount represents a year-over-year headwind to core sales growth, and a negative amount represents a year-over-year tailwind to core sales growth.

Historical and Forward-Looking Respiratory Testing Sales

($ in millions)

 Three-Month Period Ended

Year
Ended
December
31, 2025 M

Three-Month Period Ended

Three-
Month
Period
Ending
December
31, 2026

Year
Ending
December
31, 2026

March 28,
2025

June 27,
2025

September 26,
2025

December 31,
2025

March 27,
2026

June 26,
2026

September 25,
2026

Respiratory
testing
sales N

~$650

~$300

~$500

~$500

~$1,900

~$500

~$250

~$350

~$400

~$1,500

M

Respiratory testing sales amounts for the relevant three-month periods may not add to the year-to-date period amount due to rounding.

N

Actual respiratory testing sales are rounded to the nearest $50 million.

Cash Flow from Continuing Operations, Free Cash Flow from Continuing Operations and Related Measures

($ in millions)

Three-Month Period Ended

Year-over-
Year Change

Nine-Month Period Ended

Year-over-
Year Change

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Total Cash Flow from Continuing
Operations:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

$        4,742

$       4,299

Total cash used in investing
activities for continuing operations
(GAAP)

$        (300)

$         (312)

$     (10,696)

$        (812)

Total cash (used in) provided by
financing activities for continuing
operations (GAAP)

$        (262)

$      (2,781)

$        7,057

$      (4,283)

Free Cash Flow from Continuing
Operations:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

 ~ 13.5  %

$       4,742

$       4,299

 ~ 10.5  %

Less: payments for additions to
property, plant & equipment (capital
expenditures) (GAAP)

(255)

(292)

(761)

(785)

Plus: proceeds from sales of
property, plant & equipment (capital
disposals) (GAAP)

1

—

1

10

Free cash flow from continuing
operations (non-GAAP)

$       1,632

$       1,370

 ~ 19.0  %

$       3,982

$       3,524

 ~ 13.0  %

Operating Cash Flow from
Continuing Operations to Net
Earnings from Continuing
Operations Conversion Ratio:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

$       4,742

$       4,299

Net earnings from continuing
operations (GAAP)

1,207

908

3,106

2,417

Operating cash flow from continuing
operations to net earnings from
continuing operations conversion
ratio (GAAP)

1.56

1.83

1.53

1.78

Free Cash Flow from Continuing
Operations to Net Earnings from
Continuing Operations
Conversion Ratio:

Free cash flow from continuing
operations from above (non-GAAP)

$       1,632

$       1,370

$       3,982

$       3,524

Net earnings from continuing
operations (GAAP)

1,207

908

3,106

2,417

Free cash flow from continuing
operations to net earnings from
continuing operations conversion
ratio (non-GAAP)

1.35

1.51

1.28

1.46

We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of plant, property and equipment ("capital disposals"). 

Statement Regarding Non-GAAP Measures

Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.  Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation's ("Danaher" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:

with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
with respect to the non-GAAP measures related to core sales, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
with respect to free cash flow (the "FCF Measure"), understand Danaher's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's debt service requirements and other non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).

Management uses the non-GAAP measures referenced above to measure the Company's operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share From Continuing Operations, Adjusted Operating Profit and the FCF Measure in the Company's executive compensation program.

The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:

With respect to the profitability-related non-GAAP measures:
Amortization of Intangible Assets:  We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate.  While we have a history of significant acquisition activity we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition.  Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies.  We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
Restructuring Charges:  We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Danaher Business System.  Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Danaher's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
Other Adjustments:  With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Danaher's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. 

With respect to core sales and core sales excluding respiratory testing, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult and (3) beginning with the Company's Quarterly Report on Form 10-Q in the third quarter of 2026, we exclude tariff refunds to customers to help customers better understand underlying growth trends in the Company's business that otherwise may be obscured by such item.
With respect to core sales excluding respiratory testing, we exclude the impact of revenues related to the sale of respiratory testing products in the Company's molecular diagnostics business in the Diagnostics segment.  Demand for respiratory testing depends significantly on the severity levels of influenza and influenza-like illness in a given period, and these severity levels are not under management's control.  As a result, presenting core sales on a basis that combines respiratory testing revenue with other Diagnostics business revenues can obscure underlying growth trends within the Diagnostics businesses.  The Company believes that this measure complements core sales, enhances investors' understanding of the historical and anticipated performance of the Diagnostics businesses as a whole, including with respect to underlying growth trends and facilitates comparisons of period-to-period performance. 
With respect to the FCF Measure, we deduct payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.

SOURCE Danaher Corporation

New centerline turboprop delivers more power, efficiency and flexibility for next-generation aircraft 

, /PRNewswire/ -- Pratt & Whitney Canada today unveiled its latest turboprop engine with a new centerline that delivers 33% more power at altitude and reduces fuel consumption by 20%, compared to previous generation engines. The engine, which amassed more than 14,000 development hours, was recently certified by Transport Canada. Pratt & Whitney is an RTX (NYSE: RTX) business.

"The PT9 engine represents the next evolution of turboprop propulsion, delivering significant advances in performance, efficiency and adaptability to meet the needs of modern aviation," said Satheeshkumar Kumarasingam, president, Pratt & Whitney Canada. "Designed around evolving customer needs, including advanced digital capabilities and future-ready hybridization, its architecture can be tailored to diverse airframe types and provides a strong foundation for continued innovation and technology integration." 

The PT9 engine combines jet-like performance, turboprop efficiency and advanced digital intelligence in a next-generation architecture designed to provide more capability today and evolve with the aircraft of tomorrow. Its modular construction sets the foundation for continued innovation and technology integration, including electric aircraft and hybrid thermal-electric powerplants. The PT9 engine is ideal for high-demand missions and can be easily tailored to diverse airframe types.

Production will take place in Lethbridge, Alberta, Canada, which is also the company's global Center of Excellence for the PT6 family of turboprop engines.

About Pratt & Whitney  
Pratt & Whitney, an RTX business, is a world leader in the design, manufacture and service of aircraft engines and auxiliary power units for military, commercial and civil aviation customers. Since 1925, our engineers have pioneered the development of revolutionary aircraft propulsion technologies, and today we support more than 90,000 in-service engines through our global network of maintenance, repair and overhaul facilities.

About RTX 
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.  

For questions or to schedule an interview, please contact [email protected]. 

SOURCE RTX

New software connects AI agents, skills and workflows across the automation lifecycle

, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced the introduction of FactoryTalk® Conductor™, a new AI-native orchestration platform designed to coordinate AI-powered work across the industrial automation lifecycle, creating a foundation for AI-enabled workflows from system design through operation and maintenance. The software will make its public debut at Automation Fair® 2026 in Boston, where attendees will receive an exclusive first look ahead of its planned commercial availability in the first quarter of 2027.

Rockwell Automation Introduces FactoryTalk Conductor, an AI-Native Orchestration Platform for Industrial Automation According to Rockwell Automation's 2026 State of Smart Manufacturing Report, one-third of manufacturing operations are already AI-augmented, with adoption expected to accelerate in the years ahead. As manufacturers move from AI experimentation to broader deployment, they need practical ways to connect technology, workflows and expertise. FactoryTalk Conductor is designed to meet that need through a single platform that brings AI together across engineering environments.

"The next phase of industrial AI will be defined by orchestration rather than individual copilots," said Craig Resnick, Vice President, ARC Advisory Group. "Manufacturers need AI technologies that can coordinate tasks across software systems, engineering tools and operational data. FactoryTalk Conductor reflects the industry's evolution toward agentic automation by bringing AI agents, workflows and industrial expertise together in a unified environment."

FactoryTalk Conductor enables users to initiate engineering tasks using natural language and intelligently connects the software, AI capabilities and workflows needed to complete them. At launch, the platform will integrate with Studio 5000 Logix Designer®, Logix Echo™, Emulate3D® and FactoryTalk® Optix™, providing coverage across key design, development, simulation and testing workflows. Additional integrations across Rockwell Automation's software portfolio, including FactoryTalk® Design Studio™, FactoryTalk® Historian, Plex® and Fiix®, are planned to follow, expanding AI-powered workflows across the industrial automation lifecycle.

"What makes FactoryTalk Conductor unique is the combination of AI orchestration and trusted industrial expertise," said Matheus Bulho, senior vice president, software & control, Rockwell Automation. "Customers can leverage Rockwell Automation-verified agents and skills, create capabilities tailored to their business, and connect AI across software, data and services. This creates a scalable foundation for accelerating engineering work while maintaining the standards required in industrial environments."

Key benefits include:

Supporting enterprise AI and governance requirements, giving organizations the flexibility to leverage FactoryTalk Hub-hosted AI services or connect their preferred large or small language models, including locally hosted open-weight models that can help reduce ongoing token consumption costs. Accelerating engineering workflows across the automation lifecycle by coordinating activities across design, development, testing and verification environments. Reducing complexity across software applications by enabling AI-powered workflows that span Studio 5000 Logix Designer, Logix Echo, Emulate3D, FactoryTalk Optix and other Rockwell Automation solutions. Applying AI with greater confidence and reliability through Rockwell Automation-developed integrations that connect software, data and services across industrial operations. Extending trusted automation expertise through Rockwell Automation-verified agents and skills, helping teams accelerate work with capabilities purpose-built for industrial applications. Manufacturers attending Automation Fair 2026 will be able to experience FactoryTalk Conductor demonstrations across multiple show floor experiences, including Technology & Services Showcase, Industry Pavillion, Innovations, as well as dedicated technical sessions.

Additional information about FactoryTalk Conductor and Automation Fair can be found at www.rockwellautomation.com.

Frequently Asked Questions

What is FactoryTalk Conductor?
FactoryTalk Conductor is an AI-native orchestration platform that connects AI agents, skills, workflows and automation software to help engineers accelerate system design, development and testing activities through natural language interactions and trusted industrial expertise.

How is FactoryTalk Conductor different from an AI copilot?
While traditional AI copilots assist with individual tasks, FactoryTalk Conductor enables multiple AI agents, workflows and software tools to work together across engineering processes. This enables broader automation of complex, multi-step activities that span applications, data sources and teams.

When will FactoryTalk Conductor be available?
FactoryTalk Conductor will be previewed at Automation Fair 2026 in Boston and is expected to be commercially available in the first quarter of 2027.

What Rockwell Automation products can FactoryTalk Conductor work with?
FactoryTalk Conductor is designed to work across a growing portfolio of Rockwell Automation software. At launch, it will support Studio 5000 Logix Designer®, Logix Echo™, Emulate3D® and FactoryTalk® Optix™, with additional integrations planned for FactoryTalk® Design Studio™, FactoryTalk® Historian, Plex®, Fiix® and other solutions over time.

Can customers create and deploy their own AI agents and skills?
Yes. In addition to Rockwell Automation-verified agents and skills, customers can create and deploy their own agents and skills to support company standards, industry requirements and unique engineering workflows

About Rockwell Automation

Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.

SOURCE Rockwell Automation, Inc.

Grange Capital LLC trimmed its stake in Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) by 12.8% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 14,499 shares of the network technology company’s stock after selling 2,120 shares during the period. Palo Alto Networks accounts for about 5.4% of Grange Capital LLC’s investment portfolio, making the stock its 6th biggest holding. Grange Capital LLC’s holdings in Palo Alto Networks were worth $5,761,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently modified their holdings of the stock. West Branch Capital LLC purchased a new stake in Palo Alto Networks in the third quarter worth $109,000. South Shore Capital Advisors purchased a new position in Palo Alto Networks during the third quarter valued at $226,000. 55 North Private Wealth LLC lifted its position in Palo Alto Networks by 31.7% during the third quarter. 55 North Private Wealth LLC now owns 1,455 shares of the network technology company’s stock valued at $578,000 after buying an additional 350 shares during the period. Ballast Inc. bought a new stake in shares of Palo Alto Networks during the 3rd quarter valued at $200,000. Finally, Boyd Wealth Management LLC bought a new stake in shares of Palo Alto Networks during the 3rd quarter valued at $434,000. Institutional investors own 79.82% of the company’s stock.

Palo Alto Networks Price Performance PANW opened at $340.28 on Wednesday. The firm has a market cap of $278.35 billion, a PE ratio of 667.23, a P/E/G ratio of 9.99 and a beta of 0.93. The stock has a 50-day moving average price of $371.03 and a 200-day moving average price of $304.63. Palo Alto Networks, Inc. has a 1 year low of $139.57 and a 1 year high of $432.33. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.87 and a quick ratio of 0.87.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The network technology company reported $1.02 EPS for the quarter, beating the consensus estimate of $0.98 by $0.04. Palo Alto Networks had a net margin of 2.67% and a return on equity of 8.50%. The company had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same period in the prior year, the firm posted $0.95 EPS. Palo Alto Networks’s revenue for the quarter was up 34.5% on a year-over-year basis. Palo Alto Networks has set its FY 2027 guidance at 4.160-4.190 EPS and its Q1 2027 guidance at 0.960-0.980 EPS. Sell-side analysts predict that Palo Alto Networks, Inc. will post 2.31 earnings per share for the current fiscal year. Analysts Set New Price Targets A number of analysts have recently weighed in on the stock. FBN Securities reaffirmed an “outperform” rating on shares of Palo Alto Networks in a research report on Wednesday, July 1st. Argus reissued a “buy” rating and set a $425.00 price target on shares of Palo Alto Networks in a research report on Thursday, September 3rd. Capital One Financial boosted their price objective on shares of Palo Alto Networks from $421.00 to $428.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 2nd. BMO Capital Markets restated an “outperform” rating and issued a $415.00 price objective (up from $335.00) on shares of Palo Alto Networks in a report on Thursday, August 20th. Finally, Morgan Stanley set a $410.00 target price on shares of Palo Alto Networks and gave the company an “overweight” rating in a research note on Monday, September 21st. Thirty-nine investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Palo Alto Networks currently has a consensus rating of “Moderate Buy” and a consensus target price of $398.55.

Check Out Our Latest Analysis on PANW

Insiders Place Their Bets In other news, Director John Key sold 2,500 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $376.03, for a total transaction of $940,075.00. Following the transaction, the director directly owned 10,000 shares of the company’s stock, valued at $3,760,300. This represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Dipak Golechha sold 27,500 shares of Palo Alto Networks stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $391.60, for a total value of $10,769,000.00. Following the completion of the sale, the executive vice president owned 117,750 shares of the company’s stock, valued at $46,110,900. The trade was a 18.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 54,210 shares of company stock worth $20,823,029. 1.40% of the stock is owned by corporate insiders.

Palo Alto Networks Company Profile (Free Report)

Palo Alto Networks, Inc (NASDAQ:PANW) is a global cybersecurity company that helps organizations protect networks, cloud environments, endpoints, and digital infrastructure. Its offerings are designed to prevent cyberattacks, identify security risks, monitor activity, and support incident response across enterprise, government, and service-provider environments.

The company’s portfolio includes network security products such as next-generation firewalls and security operations tools; Prisma, its cloud security platform; and Cortex, a suite focused on endpoint protection, threat detection, security analytics, and automated response.

Recommended Stories Five stocks we like better than Palo Alto Networks Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding PANW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report).

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INDIANAPOLIS--(BUSINESS WIRE)--Elevance Health, Inc. (NYSE: ELV) reported third quarter 2026 results ahead of expectations.

"Elevance Health's third quarter results reflect stronger execution across our diversified portfolio and underscore the earnings power of the business. We are raising our 2026 earnings outlook and remain confident in delivering at least 12% growth in adjusted diluted earnings per share in 2027 from our higher earnings baseline of at least $26.753. By bringing together the capabilities of our Health Benefits business and Carelon, we are improving the healthcare experience, strengthening our competitive advantage, and creating long-term value for our shareholders."

Gail K. Boudreaux
President and Chief Executive Officer

  1.   Earnings per diluted share ("EPS").

  2.   Refer to GAAP reconciliation tables for reconciliation of GAAP to adjusted measures.

  3.   FY 2026 earnings baseline excludes non-recurring net investment income and other non-operating items, as well as targeted one-time investments.

Elevance Health

Consolidated Enterprise Highlights

(Unaudited)

(In billions)

Three Months Ended

September 30,
2026

September 30,
2025

Operating Revenue1

$50.4

$50.1

Operating Gain1,2

$1.3

$1.3

Adjusted Operating Gain1,3

$1.3

$1.3

Operating Margin1

2.5 %

2.6 %

Adjusted Operating Margin1,3

2.7 %

2.7 %

  1.   See “Basis of Presentation.”

  2.   Operating Gain for the three months ended September 30, 2026 and September 30, 2025 includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

  3.   Adjusted Operating Gain for the three months ended September 30, 2026 and September 30, 2025 excludes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

Operating revenue was $50.4 billion in the third quarter of 2026, an increase of $0.4 billion compared to the prior year quarter. This was driven by higher premium yields, increased CarelonRx product revenue, and growth in service fees, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.

The benefit expense ratio of 90.6 percent improved 70 basis points, driven by better performance in Medicare Advantage and Individual ACA compared to the prior year.

Days in Claims Payable stood at 44.9 days as of September 30, 2026, an increase of 3.5 days year over year.

The operating expense ratio was 11.4 percent. The adjusted operating expense ratio was 11.3 percent, an increase of 90 basis points from the prior year. The increase principally reflected targeted, one-time investments in capabilities that support our long-term performance, along with spending to advance business growth and quality initiatives.

Cash Flow & Balance Sheet

Operating cash flow of $1.3 billion in the quarter increased $0.1 billion relative to the prior year, primarily reflecting favorable working capital dynamics. As of September 30, 2026, cash and investments at the parent company totaled approximately $2.4 billion.

During the third quarter of 2026, the Company repurchased 0.8 million shares of its common stock for $330 million, at a weighted average price of $398.75 per share, and paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $373 million. As of September 30, 2026, the Company had approximately $5.0 billion of Board approved share repurchase authorization remaining.

Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses.

Health Benefits

Reportable Segment Highlights

(Unaudited)

(In billions)

Three Months Ended

September 30,
2026

September 30,
2025

Operating Revenue1

$43.4

$42.2

Operating Gain1

$0.4

$0.6

Operating Margin1

1.0 %

1.4 %

Health Benefits segment operating revenue was $43.4 billion in the third quarter of 2026, an increase of $1.1 billion, or 3 percent compared to the prior year quarter, driven primarily by higher premium yields and service fee revenue, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.

Operating gain was $0.4 billion, a decline year over year, reflecting the impact of targeted investments to support our long-term operating model. This was partially offset by the improvement in our benefit expense ratio.

Medical membership of approximately 44.9 million as of September 30, 2026 decreased by 487 thousand compared to the prior year. The decline reflected lower enrollment in our Medicaid, Medicare Advantage, and Employer Group risk-based businesses, partially offset by growth in Commercial fee-based membership.

Carelon is comprised of CarelonRx and Carelon Services.

Carelon

Reportable Segment Highlights

(Unaudited)

(In billions)

Three Months Ended

September 30,
2026

September 30,
2025

Operating Revenue1

$19.3

$18.3

Operating Gain1

$0.9

$0.8

Operating Margin1

4.7 %

4.2 %

Operating revenue for Carelon was $19.3 billion in the third quarter of 2026, an increase of $1.0 billion, or 5 percent compared to the prior year quarter. Growth was driven by CarelonRx product revenue and continued expansion of Carelon Services risk-based solutions.

Operating gain for Carelon totaled $0.9 billion, an increase of 17 percent year over year, reflecting strong performance of Carelon Services risk-based solutions and the improved profitability of our specialty pharmacy.

Quarterly Dividend

On October 20, 2026, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2026 dividend to shareholders of $1.72 per share. The fourth quarter dividend is payable on December 18, 2026 to shareholders of record at the close of business on December 4, 2026.

About Elevance Health

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 103 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s third quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on November 20, 2026. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.

Basis of Presentation

Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
Operating margin is defined as operating gain divided by operating revenue. Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year-to-Date Ended September 30, 2026

Membership and Other Metrics Quarterly & Year-to-Date Consolidated Statements of Income Condensed Consolidated Balance Sheet Condensed Consolidated Statement of Cash Flows Supplemental Financial Information - Reportable Segments & Health Benefits Revenue Details Supplemental Financial Information - Reconciliation of Medical Claims Payable Reconciliation of Non-GAAP Financial Measures Elevance Health

Membership and Other Metrics

(Unaudited)

Change from

Medical Membership (in thousands)

September 30,
2026

September 30,
2025

June 30,
2026

September 30,
2025

June 30,
2026

Individual

1,348

1,354

1,317

(0.4) %

2.4 %

Employer Group Risk-Based

3,366

3,616

3,417

(6.9) %

(1.5) %

Commercial Risk-Based

4,714

4,970

4,734

(5.2) %

(0.4) %

BlueCard®

6,596

6,394

6,582

3.2 %

0.2 %

Employer Group Fee-Based

21,009

20,608

20,931

1.9 %

0.4 %

Commercial Fee-Based

27,605

27,002

27,513

2.2 %

0.3 %

Medicare Advantage

1,898

2,245

1,897

(15.5) %

0.1 %

Medicare Supplement

898

877

893

2.4 %

0.6 %

Total Medicare

2,796

3,122

2,790

(10.4) %

0.2 %

Medicaid

8,220

8,645

8,358

(4.9) %

(1.7) %

Federal Employee Program

1,547

1,630

1,554

(5.1) %

(0.5) %

Total Medical Membership

44,882

45,369

44,949

(1.1) %

(0.1) %

Other Metrics (in millions)

CarelonRx Quarterly Adjusted Scripts

82.6

85.0

80.9

(2.8) %

2.1 %

Carelon Services Consumers Served

91.0

97.6

92.4

(6.8) %

(1.5) %

Elevance Health

Consolidated Statements of Income

(Unaudited)

(In millions, except per share data)

Three Months Ended

September 30

Nine Months Ended

September 30

2026

2025

Change

2026

2025

Change

Revenues

Premiums

$

41,704

$

41,791

(0.2

)%

$

124,007

$

123,949

—

%

Product revenue

6,454

6,159

4.8

%

18,943

18,010

5.2

%

Service fees

2,282

2,137

6.8

%

6,810

6,314

7.9

%

Total operating revenue

50,440

50,087

0.7

%

149,760

148,273

1.0

%

Net investment income

1,037

625

65.9

%

2,506

1,701

47.3

%

Net losses on financial instruments

(48

)

(1

)

NM

(182

)

(596

)

NM

Total revenues

51,429

50,711

1.4

%

152,084

149,378

1.8

%

Expenses

Benefit expense

37,779

38,140

(0.9

)%

110,418

110,158

0.2

%

Cost of products sold

5,640

5,380

4.8

%

16,595

15,656

6.0

%

Operating expense

5,752

5,272

9.1

%

17,629

15,569

13.2

%

Interest expense

358

351

2.0

%

1,079

1,036

4.2

%

Amortization of other intangible assets

106

162

(34.6

)%

328

464

(29.3

)%

Total expenses

49,635

49,305

0.7

%

146,049

142,883

2.2

%

Income before income tax expense

1,794

1,406

27.6

%

6,035

6,495

(7.1

)%

Income tax expense

451

219

105.9

%

1,478

1,380

7.1

%

Net income

1,343

1,187

13.1

%

4,557

5,115

(10.9

)%

Net loss (gain) attributable to noncontrolling interests

22

2

NM

35

—

NM

Shareholders' net income

$

1,365

$

1,189

14.8

%

$

4,592

$

5,115

(10.2

)%

Shareholders' earnings per diluted share

$

6.27

$

5.32

17.9

%

$

21.01

$

22.67

(7.3

)%

Diluted shares

217.6

223.7

(2.7

)%

218.6

225.6

(3.1

)%

Benefit expense as a percentage of premiums

90.6

%

91.3

%

(70) bp

89.0

%

88.9

%

10 bp

Operating expense as a percentage of total operating revenue

11.4

%

10.5

%

90 bp

11.8

%

10.5

%

130 bp

Income before income tax expense as a percentage of total revenue

3.5

%

2.8

%

70 bp

4.0

%

4.3

%

(30) bp

            "NM" = calculation not meaningful

Elevance Health

Condensed Consolidated Balance Sheet

(In millions)

September 30,
2026

December 31,
2025

Assets

(Unaudited)

Current assets:

Cash and cash equivalents

$10,348

$9,491

Fixed maturity and equity securities

27,498

26,624

Premium and other receivables

24,573

21,542

Other current assets

6,105

5,344

Total current assets

68,524

63,001

Long-term investments

12,719

11,960

Property and equipment, net

4,613

4,679

Goodwill and other intangible assets

39,220

39,544

Other noncurrent assets

2,725

2,310

Total assets

$127,801

$121,494

Liabilities and equity

Liabilities

Current liabilities:

Medical claims payable

$18,438

$17,084

Short-term borrowings

—

150

Current portion of long-term debt

375

1,099

Other current liabilities

27,849

22,702

Total current liabilities

46,662

41,035

Long-term debt, less current portion

30,382

30,797

Other noncurrent liabilities

5,963

5,636

Total liabilities

83,007

77,468

Total shareholders’ equity

44,681

43,882

Noncontrolling interests

113

144

Total equity

44,794

44,026

Total liabilities and equity

$127,801

$121,494

Elevance Health

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(In millions)

Nine Months Ended
September 30

2026

2025

Operating activities

Net income

$4,557

$5,115

Depreciation and amortization

1,083

1,140

Share-based compensation

210

246

Changes in operating assets and liabilities

2,784

(2,753)

Other non-cash items

(1,122)

458

Net cash provided by operating activities

7,512

4,206

Investing activities

Sales and maturities of investments, net of purchases (purchases of investments, net of sales and maturities)

(2,303)

(412)

Purchases of subsidiaries, net of cash acquired

2

55

Purchases of property and equipment

(789)

(823)

Other, net

(380)

(628)

Net cash used in investing activities

(3,470)

(1,808)

Financing activities

Net change in short-term and long-term borrowings

(900)

659

Repurchase and retirement of common stock

(1,688)

(2,134)

Cash dividends

(1,122)

(1,152)

Other, net

539

653

Net cash used in financing activities

(3,171)

(1,974)

Effect of foreign exchange rates on cash and cash equivalents

(14)

1

Change in cash and cash equivalents

857

425

Cash and cash equivalents at beginning of period

9,491

8,288

Cash and cash equivalents at end of period

$10,348

$8,713

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).

Elevance Health

Reportable Segment Details

(Unaudited)

(In millions)

Three Months Ended September 30

Nine Months Ended September 30

2026

2025

Change

2026

2025

Change

Operating Revenue

Health Benefits

$43,357

$42,246

2.6 %

$128,567

$125,259

2.6 %

CarelonRx

11,599

10,997

5.5 %

33,449

31,756

5.3 %

Carelon Services

7,708

7,324

5.2 %

23,048

21,301

8.2 %

Corporate & Other

6

149

(96.0) %

16

546

(97.1) %

Eliminations

(12,230)

(10,629)

NM6

(35,320)

(30,589)

NM6

Total Operating Revenue1

$50,440

$50,087

0.7 %

$149,760

$148,273

1.0 %

Operating Gain (Loss)

Health Benefits

$436

$601

(27.5) %

$3,489

$4,378

(20.3) %

CarelonRx

616

556

10.8 %

1,780

1,694

5.1 %

Carelon Services

292

219

33.3 %

1,128

1,110

1.6 %

Corporate & Other2,3

(75)

(81)

NM6

(1,279)

(292)

NM6

Total Operating Gain1,4

$1,269

$1,295

(2.0) %

$5,118

$6,890

(25.7) %

Operating Margin

Health Benefits

1.0 %

1.4 %

(40) bp

2.7 %

3.5 %

(80) bp

CarelonRx

5.3 %

5.1 %

20 bp

5.3 %

5.3 %

— bp

Carelon Services

3.8 %

3.0 %

80 bp

4.9 %

5.2 %

(30) bp

Total Operating Margin1

2.5 %

2.6 %

(10) bp

3.4 %

4.6 %

(120) bp

Health Benefits Revenue Details

(In millions)

Three Months Ended September 30

Nine Months Ended September 30

2026

2025

Change

2026

2025

Change

Health Benefits Operating Revenue

Commercial

$13,343

$12,849

3.8 %

$40,142

$37,654

6.6 %

Individual5

2,514

2,358

6.6 %

7,774

7,047

10.3 %

Medicare

11,229

11,138

0.8 %

33,182

33,990

(2.4) %

Medicaid

14,979

14,166

5.7 %

43,703

42,120

3.8 %

Federal Employee Program

3,806

4,093

(7.0) %

11,540

11,495

0.4 %

Total Health Benefits Operating Revenue1

$43,357

$42,246

2.6 %

$128,567

$125,259

2.6 %

1.   See “Basis of Presentation.”

2.   Operating Gain for the three and nine months ended September 30, 2026 included $42 and $133 million, respectively, of transaction and integration related costs, $18 and $147 million, respectively, of business optimization charges, and $8 and $26 million, respectively, of litigation and settlement expenses. Operating Gain for the nine months ended September 30, 2026 also included $935 million for the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.

3.   Operating Gain for the three and nine months ended September 30, 2025, included $49 and $182 million, respectively, of transaction and integration related costs, ($4) and ($4) million, respectively, of business optimization charges, and $4 and $19 million, respectively, of litigation and settlement expenses. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.

4.   Operating Gain for the three and nine months ended September 30, 2026, and September 30, 2025, include items excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

5.   The Individual business, including ACA products, is reported as part of Commercial Operating Revenue.

6.   "NM" = calculation not meaningful.

Elevance Health

Reconciliation of Medical Claims Payable

Nine Months Ended September 30

Years Ended December 31

2026

2025

2025

2024

2023

(In millions)

(Unaudited)

(Unaudited)

Gross medical claims payable, beginning of period

$

16,829

$

15,580

$

15,580

$

15,865

$

15,348

Ceded medical claims payable, beginning of period

(48

)

(13

)

(13

)

(7

)

(6

)

Net medical claims payable, beginning of period

16,781

15,567

15,567

15,858

15,342

Business combinations and purchase adjustments

—

344

344

143

—

Net incurred medical claims:

Current year

108,608

108,423

145,566

125,370

121,798

Prior years redundancies1

(1,295

)

(1,266

)

(1,290

)

(1,731

)

(1,571

)

Total net incurred medical claims

107,313

107,157

144,276

123,639

120,227

Net payments attributable to:

Current year medical claims

92,416

93,545

130,265

110,930

107,146

Prior years medical claims

13,629

12,699

13,141

13,143

12,565

Total net payments

106,045

106,244

143,406

124,073

119,711

Net medical claims payable, end of period

18,049

16,824

16,781

15,567

15,858

Ceded medical claims payable, end of period

45

44

48

13

7

Gross medical claims payable, end of period2

$

18,094

$

16,868

$

16,829

$

15,580

$

15,865

Current year medical claims paid as a percentage of current year net incurred medical claims

85.1

%

86.3

%

89.5

%

88.5

%

88.0

%

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

8.4

%

8.9

%

9.0

%

12.3

%

11.4

%

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

0.9

%

1.0

%

1.0

% 1.4

%

1.4

% Elevance Health

GAAP Reconciliation

(Unaudited)

This document references non-GAAP measures, including “Adjusted Diluted EPS,” “Adjusted Operating Expense Ratio,” “Adjusted Operating Gain,” “Adjusted Operating Margin,” “Adjusted Shareholders’ Net Income,” and “Adjusted Operating Expense”. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue,” “Operating Gain/Loss,” and “Operating Margin”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of reportable segments operating gain to income before income tax expense is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding.

      Three Months Ended
September 30

Nine Months Ended
September 30

  (In millions, except per share data)

2026

2025

Change

2026

2025

Change

  Shareholders' net income

$

1,365

$

1,189

14.8

%

$

4,592

$

5,115

(10.2

)%

  Add / (Subtract):

  Amortization of other intangible assets

106

162

328

464

  Net losses on financial instruments

48

1

182

596

  Transaction and integration related costs1

42

49

133

182

  Business optimization program charges1

18

(4

)

147

(4

)

  Litigation and settlement expenses1

8

4

26

19

  Accrual related to CMS notice1,2

—

—

935

—

  Tax impact of non-GAAP adjustments

(67

)

(52

)

(427

)

(307

)

  Net adjustment items

155

160

1,324

950

  Adjusted shareholders' net income

$

1,520

$

1,349

12.7

%

$

5,916

$

6,065

(2.5

)%

    Shareholders' earnings per diluted share

$

6.27

$

5.32

17.9

%

$

21.01

$

22.67

(7.3

)%

  Add / (Subtract):

  Amortization of other intangible assets

0.49

0.72

1.50

2.06

  Net losses on financial instruments

0.22

—

0.83

2.64

  Transaction and integration related costs1

0.19

0.22

0.61

0.81

  Business optimization program charges1

0.08

(0.02

)

0.67

(0.02

)

  Litigation and settlement expenses1

0.04

0.02

0.12

0.08

  Accrual related to CMS notice1,2

—

—

4.28

—

  Tax impact of non-GAAP adjustments

(0.31

)

(0.23

)

(1.95

)

(1.36

)

  Net adjustment items

0.72

0.71

6.05

4.21

  Adjusted shareholders' earnings per diluted share

$

6.99

$

6.03

15.9

%

$

27.06

$

26.88

0.7

%

    Three Months Ended September 30

Nine Months Ended September 30

  (In millions)

2026

2025

Change

2026

2025

Change

    Income before income tax expense

$

1,794

$

1,406

27.6

%

$

6,035

$

6,495

(7.1

)%

  Net investment income

(1,037

)

(625

)

(2,506

)

(1,701

)

  Net losses on financial instruments

48

1

182

596

  Interest expense

358

351

1,079

1,036

  Amortization of other intangible assets

106

162

328

464

  Reportable segments operating gain

$

1,269

$

1,295

(2.0

)%

$

5,118

$

6,890

(25.7

)%

Elevance Health

GAAP Reconciliation

(Unaudited)

      Three Months Ended
September 30

Nine Months Ended
September 30

  (In millions)

2026

2025

Change

2026

2025

Change

    Reportable segments operating gain

$

1,269

$

1,295

(2.0

)%

$

5,118

$

6,890

(25.7

)%

  Add / (Subtract):

  Transaction and integration related costs1

42

49

133

182

  Business optimization program charges1

18

(4

)

147

(4

)

  Litigation and settlement expenses1

8

4

26

19

  Accrual related to CMS notice1,2

—

—

935

—

  Net adjustment items

68

49

1,241

197

  Reportable segments adjusted operating gain

$

1,337

$

1,344

(0.5

)%

$

6,359

$

7,087

(10.3

)%

    Operating revenue

$

50,440

$

50,087

0.7

%

$

149,760

$

148,273

1.0

%

    Operating margin

2.5

%

2.6

%

(10) bp

3.4

%

4.6

%

(120) bp

  Adjusted operating margin

2.7

%

2.7

%

— bp

4.2

%

4.8

%

(60) bp

    Three Months Ended
September 30

Nine Months Ended
September 30

  (In millions)

2026

2025

Change

2026

2025

Change

  Operating expense

$

5,752

$

5,272

9.1

%

$

17,629

$

15,569

13.2

%

  Add / (Subtract):

  Transaction and integration related costs1

(42

)

(49

)

(133

)

(182

)

  Business optimization program charges1

(18

)

4

(147

)

4

  Litigation and settlement expenses1

(8

)

(4

)

(26

)

(19

)

  Accrual related to CMS notice1,2

—

—

(935

)

—

  Net adjustment items

(68

)

(49

)

(1,241

)

(197

)

  Adjusted operating expense

$

5,684

$

5,223

8.8

%

$

16,388

$

15,372

6.6

%

    Operating revenue

$

50,440

$

50,087

0.7

%

$

149,760

$

148,273

1.0

%

    Operating expense ratio

11.4

%

10.5

%

90 bp

11.8

%

10.5

%

130 bp

  Adjusted operating expense ratio

11.3

%

10.4

%

90 bp

10.9

%

10.4

%

50 bp

    Full Year
2026 Outlook

  Shareholders' earnings per diluted share

At least $22.00

  Add / (Subtract):

  Accrual related to CMS notice1,2

$

4.28

  Amortization of other intangible assets3

$

2.02

  Net losses on financial instruments3

$

1.16

  Transaction and integration related costs1,3

$

0.91

  Business optimization program charges1

$

0.67

  Litigation and settlement expenses1,3

$

0.16

  Tax impact of non-GAAP adjustments3

Approximately ($2.20)

  Net adjustment items

$

7.00

  Adjusted shareholders' earnings per diluted share

At least $29.00

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan,” "potential," "predict" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity or sentiment related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

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