Adobe rozšiřuje AI v marketingu a zákaznické zkušenosti novými řešeními a partnerstvími s Accenture, Omnicom, WPP a Stagwell's Code and Theory. Cílem je více automatizovat tvorbu, správu i měření kampaní.
Adobe (ADBE, Financials) is leaning further into AI for marketing and customer experience. The company announced new solutions and partnerships at Cannes Lions 2026 with Accenture, Omnicom, WPP and Stagwell's Code and Theory. The goal is to help brands create, manage and measure campaigns with more automation.
Adobe and Accenture Song have developed a framework for AI-powered customer experiences. Omnicom is also using Adobe technology in its AI Agentic Operating Model for industries such as autos, retail, pharmaceuticals and financial services.
WPP is launching a connected intelligence layer that links paid media spending with customer experience data. Code and Theory is rolling out a content system for sports organizations, using Adobe tools to connect fan data with content workflows.
The announcements show Adobe trying to defend and expand its role in marketing software as AI changes how brands produce content and run campaigns.
For investors, the key question is whether these partnerships can turn AI interest into stronger revenue growth after concerns about slower momentum in Adobe's core business.
Adobe rozšiřuje Creative Agent napříč Firefly, Photoshopem, Premiere Pro a Illustratorem a vkládá AI přímo do pracovního procesu. Firma tím posiluje svůj ekosystém a potenciál růstu.
Key Takeaways Adobe is expanding Creative Agent across Firefly, Photoshop, Premiere Pro and Illustrator.Adobe is integrating AI into its apps as a productivity layer across the creative process.AI tools may boost engagement, retention and growth in digital media and content creation. Adobe’s (ADBE - Free Report) recent expansion of its AI-powered Creative Agent across Firefly and core Creative Cloud applications—including Photoshop, Premiere Pro, Illustrator and other flagship products—marks another important step in strengthening its long-term growth strategy.
Adobe already holds a dominant position in the professional creative software market through industry-leading solutions such as Photoshop, Illustrator, Premiere Pro and After Effects. By embedding Creative Agent capabilities directly into these applications, the company is evolving AI from a standalone tool into a seamless productivity layer integrated throughout the creative process.
Artificial intelligence is increasingly becoming a major driver of Adobe’s future growth. The company continues to enhance its platform with generative AI offerings such as Acrobat AI Assistant, Firefly App and Services and GenStudio for Performance Marketing. Adobe’s established product ecosystem benefits from high switching costs and strong customer loyalty, providing a durable competitive advantage that supports pricing power and steady subscription revenue growth.
The company also enjoys the benefits of recurring revenues, robust free cash flow generation and strong operating margins. The expansion of AI capabilities across its ecosystem has the potential to boost customer engagement and retention while creating new growth opportunities in digital media and content creation. As organizations increasingly adopt AI-powered creative tools, Adobe remains well-positioned to capture a significant share of the value generated by the next wave of creative and marketing workflows.
What About Adobe’s Peers?Alphabet (GOOGL - Free Report) continues to broaden its generative AI stack across models, tooling and security. Alphabet’s global expansion of Search Live reflects Google’s broader push to integrate generative AI more deeply into its core search experience. Alphabet’s Google introduced Lyria 3 Pro, expanding its portfolio of generative AI tools across different creative domains.
Salesforce’s (CRM - Free Report) expanding generative AI portfolio positions it to capitalize on growing AI opportunities. Since launching Einstein GPT in March 2023, Salesforce has strengthened its AI capabilities through strategic investments. Salesforce allocated $1 billion through its venture capital fund for generative AI and deployed more than $850 million by October 2025.
ADBE’s Price PerformanceShares of Adobe have lost 44.2% year to date, underperforming the industry.
Image Source: Zacks Investment Research
ADBE’s Discounted ValuationADBE trades at a price-to-earnings value ratio of 7.55, lower than the industry average of 19.84.
Image Source: Zacks Investment Research
Estimate Movement for ADBEThe Zacks Consensus Estimate for ADBE’s fiscal third and fourth-quarter 2026 earnings per share has moved north in the last 30 days. The same holds true for fiscal 2026 and 2027.
Adobe ve 2. čtvrtletí fiskálního roku 2026 vykázala rekordní tržby 6,62 mld. USD a non-GAAP EPS 5,96 USD, přičemž vedení zvýšilo výhled tržeb na 26,50–26,60 mld. USD.
Few large-cap software names have fallen as far, as fast, as Adobe (NASDAQ:ADBE | ADBE Price Prediction) over the past year. The stock has gone from a creative-software bellwether to a value puzzle, with the market pricing in AI disruption while management keeps raising guidance. That gap is where our model sees opportunity.
Adobe trades at $194.90 as of June 22, 2026. Our 24/7 Wall St. price target for Adobe is $264.05 over the next 12 months, implying 35.48% upside. Our recommendation is buy, with confidence of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $194.90 24/7 Wall St. Price Target $264.05 Upside 35.48% Recommendation BUY Confidence Level 90% A Year of Pain Meets a Beat-and-Raise Quarter ADBE has fallen 44.31% year to date and 48.29% over the past year, with shares trading 28% below the 52-week high of $392.58 and just above the $190.12 low.
Yet the fundamentals remain intact. Q2 FY2026 delivered record revenue of $6.62 billion, up 13% year over year, with non-GAAP EPS of $5.96 marking the fifth consecutive beat. AI-first ARR tripled to exceed $500 million, and management raised FY2026 revenue guidance to $26.50B–$26.60B.
The selling pressure comes from elsewhere. Citi cut its price target to $228 from $264 on June 20, citing a roughly $500 million implied reduction to organic ARR as Adobe pivots toward freemium acquisition. Sector-wide AI subscription fears, the CFO transition (Dan Durn departed June 15, 2026), and CEO succession have compounded the de-rating.
The Case for $328 and Above Bulls point to AI monetization that is accelerating, not stalling. AI-first ARR moved from a $250M target in Q3 FY2025 to $500M+ by Q2 FY2026. The CX Enterprise Coworker launch and Cannes Lions partnerships with Accenture, Omnicom, WPP, Anthropic, and Microsoft reposition Adobe as agentic infrastructure rather than disruption target.
Operating cash flow hit $2.17 billion in Q2, funding $2.111 billion in buybacks. Our bull case price target is $328.58, a 68.59% return. The Reddit thesis put it bluntly: “Wall Street thinks AI is coming for Adobe’s lunch. I think Adobe already put it behind a paywall and called it dinner.”
What Could Go Wrong The bear case is real. Freedom Broker downgraded ADBE to Hold from Buy, calling Adobe’s growth “acquired rather than organic” and pointing to a “show-me phase.” Generative AI competitors (Figma, Canva, OpenAI) threaten the creative workflow moat, and the 132 recent insider transactions have skewed net selling.
Q2 GAAP EPS of $4.25 reflected a $70M goodwill impairment and $30M litigation accrual, although those are non-recurring items and non-GAAP EPS still beat. Our bear case target is $235.93, still a 21.05% return from here.
Adobe Price Prediction 2026-2030 At an implied forward P/E near 8x, ADBE is pricing in significant AI disruption that the numbers do not yet show. Our 24/7 Wall St. price target of $264.05 implies 35.48% upside, with 90% confidence and a buy call.
The Q2 beat-and-raise tips the scale. The setup looks constructive if Q3 ARR growth holds at the guided trajectory. The thesis weakens if Adobe walks back its FY2026 ARR growth target of 10.2% on the next earnings report.
Year 24/7 Wall St. Price Target 2026 $231.09 2027 $285.23 2028 $355.18 2029 $396.75 2030 $445.34 These projections assume Adobe continues converting AI-first ARR into durable subscription revenue. Significant upside or downside could result from regulatory resolution on Semrush, new leadership execution, or a faster-than-expected shift in creative software economics.
Hertz Corp. plánuje soukromou nabídku směnitelných seniorních prvně zajištěných PIK dluhopisů za 300 milionů USD splatných v roce 2030. Výnosy chce použít na obecné firemní účely, včetně splácení dluhu.
ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) (“Hertz” or the “Company”), a leading global rental car company, today announced that its wholly-owned indirect subsidiary, The Hertz Corporation (“Hertz Corp.”), intends to offer, subject to market and other conditions, $300 million in aggregate principal amount of Exchangeable Senior First-Lien Secured PIK Notes due 2030 (the “Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Hertz Corp. also expects to grant the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $45 million in aggregate principal amount of Notes.
Hertz Corp. intends to use the net proceeds received from the offering of the Notes for general corporate purposes, which may include the repayment of outstanding indebtedness.
The Notes will bear interest from, and including, the issue date of the Notes, payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2027. Each payment of interest on the Notes (excluding any additional interest, special interest and default interest) will consist of (i) a portion to be paid in cash and (ii) a portion to be paid in the form of PIK interest. The interest rate, exchange rate and certain other terms of the Notes will be determined by negotiations between Hertz Corp. and the initial purchasers of the Notes. The Notes will mature on July 1, 2030, unless earlier repurchased, redeemed or exchanged in accordance with their terms prior to maturity. The Notes will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Notes will be exchangeable on the terms set forth in the indenture governing the Notes into cash, shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), or a combination thereof, at Hertz Corp.’s election. The aggregate number of shares of Common Stock that may be issued upon exchange of the Notes may not exceed 19.9% of the number of shares of Common Stock outstanding prior to the offering of the Notes unless and until the shareholders of the Company approve such issuance.
Holders of the Notes will have the right to require Hertz Corp. to repurchase all or a portion of their Notes at 100% of their capitalized principal amount of the Notes plus accrued and unpaid cash interest to, but excluding, the date of such repurchase, upon the occurrence of certain corporate events constituting a “fundamental change” as defined in the indenture governing the Notes. Hertz Corp. may not redeem the Notes prior to January 6, 2029. On or after January 6, 2029 and on or prior to the 31st scheduled trading day immediately preceding the maturity date, if the last reported sale price per share of Common Stock has been at least 130% of the exchange price for the Notes for certain specified periods, and certain other conditions are satisfied, Hertz Corp. may redeem all or any portion (subject to certain limitations) of the Notes at a cash redemption price equal to 100% of the capitalized principal amount of the Notes to be redeemed plus accrued and unpaid cash interest to, but excluding, the date of such redemption.
The Notes are expected to be guaranteed by the Company, Rental Car Intermediate Holdings, LLC, Hertz Corp.’s direct parent company, and each of Hertz Corp.’s existing domestic subsidiaries and future restricted subsidiaries that guarantee indebtedness under Hertz Corp.’s first lien credit facilities or certain other indebtedness for borrowed money. The Notes and the related guarantees (other than the guarantee by the Company) are expected to be secured (subject to certain exceptions and permitted liens) on a first-lien basis by the same assets (other than certain excluded property) that secure indebtedness under Hertz Corp.’s first lien credit facilities and existing first lien secured notes, and are therefore expected to be effectively pari passu with indebtedness under Hertz Corp.’s first lien credit facilities and existing first lien secured notes.
The Notes and the related guarantees will be offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Notes, the related guarantees and any shares of Common Stock issuable upon exchange of the Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and the securities laws of any other jurisdiction.
Concurrently with the offering of the Notes, Hertz also announced today by separate press release that Hertz has commenced a separate registered public offering of $100 million of the Common Stock. Such shares (the “Borrowed Shares”) will be loaned by Hertz to a financial institution (the “Share Borrower”), acting as an underwriter in the offering of the Borrowed Shares, pursuant to a share lending agreement. The Share Borrower or its affiliates will receive all of the proceeds of the concurrent offering of Borrowed Shares and neither Hertz nor Hertz Corp. will receive any of the proceeds of that offering, but the Share Borrower will pay Hertz a nominal lending fee for the use of the Borrowed Shares pursuant to the share lending agreement. The Share Borrower will be required to return the Borrowed Shares (or identical shares of Common Stock) to the Company pursuant to the terms of the share lending agreement. Hertz has been informed by the Share Borrower that it or one of its affiliates intends to sell the Borrowed Shares and use the resulting short position to facilitate transactions by which investors in the Notes may hedge their investments through short sales or privately negotiated derivatives transactions. The activity described above could affect the market price of the Common Stock or the Notes otherwise prevailing from time to time.
This press release is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes, the related guarantees, the shares of Common Stock issuable upon exchange of the Notes or the Borrowed Shares and does not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.
The concurrent offering of the Borrowed Shares is contingent upon the closing of the offering of the Notes, but the offering of the Notes is not contingent upon the closing of the concurrent offering of the Borrowed Shares.
ABOUT HERTZ
Hertz Global Holdings, Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with more than 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe.
This press release contains “forward-looking statements” within the meaning of the federal securities laws. Words such as “expect,” “will” and “intend” and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the proposed offering of the Notes, the proposed offering of the Borrowed Shares, the anticipated terms of the Notes and Hertz Corp.’s expected use of proceeds from the proposed offering. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including risks and uncertainties related to completion of the offering on the anticipated terms or at all, market conditions (including market interest rates) and the satisfaction of customary closing conditions related to the offering, unanticipated uses of capital and those in our risk factors that we identify in the offering memorandum for the offering and our most recent annual report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission on February 26, 2026, and any updates thereto in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.
ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) (“Hertz” or the “Company”), a leading global rental car company, today announced that it intends to offer shares of its common stock, par value $0.01 per share, (the “Common Stock”) at an aggregate public offering price of $100 million in a SEC-registered offering. Such shares (the “Borrowed Shares”) will be loaned by the Company to J.P. Morgan Securities LLC (in such capacity, the “Share Borrower”), one of the underwriters of the offering of the Borrowed Shares, pursuant to a share lending agreement. The Share Borrower or its affiliates will receive all of the proceeds of the offering of Borrowed Shares and neither the Company nor The Hertz Corporation, the Company’s wholly-owned indirect subsidiary (the “Hertz Corp.”), will receive any of the proceeds of the offering, but the Share Borrower will pay the Company a nominal lending fee for the use of the Borrowed Shares pursuant to the share lending agreement. The Share Borrower will be required to return the Borrowed Shares (or identical shares of Common Stock) to the Company pursuant to the terms of the share lending agreement. The Company has been informed by the Share Borrower that it or one of its affiliates intends to sell the Borrowed Shares and use the resulting short position to facilitate transactions by which investors in the Notes (as defined below) may hedge their investments through short sales or privately negotiated derivatives transactions. The activity described above could affect the market price of the Common Stock otherwise prevailing from time to time. The offering of the Borrowed Shares is contingent upon the closing of a private offering of the Exchangeable Senior First-Lien Secured PIK Notes due 2030 (the “Notes”) that Hertz Corp. intends to offer, subject to market and other conditions, in a private placement to qualifying investors. The private offering of the Notes is not contingent upon the closing of the offering of the Borrowed Shares.
The offering of the Borrowed Shares will be made by means of a prospectus. Copies of the prospectus may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204.
This press release is not an offer to sell or purchase or a solicitation of an offer to sell or purchase the Borrowed Shares or the Notes, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.
ABOUT HERTZ
Hertz Global Holdings, Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with more than 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe.
This press release contains “forward-looking statements” within the meaning of the federal securities laws. Words such as “expect,” “will” and “intend” and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the proposed offering of the Borrowed Shares, the proposed offering of the Notes and the anticipated completion and timing of the offering. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including risks and uncertainties related to completion of the offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the offering, unanticipated uses of capital and those in our risk factors that we identify in the prospectus for the offerings and our most recent annual report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission on February 26, 2026, and any updates thereto in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.
Shopify má už tento týden zakázat na své platformě všechny vaporizéry po tlaku amerických státních zástupců. V USA se zákaz má vztahovat na všechny vaporizéry bez ohledu na to, zda mají povolení FDA.
SummaryCompaniesShopify set to ban vapes from its web hosting platform, two sources saidGeographic scope of the expected ban unclearIn the U.S., ban covers both legal and illegal vapes, sources saidLONDON, June 23 (Reuters) - Shopify Inc (SHOP.TO), opens new tab will ban all vapes from its platform as soon as this week after pressure from a group of U.S. state attorneys general aiming to curb sales of illegal e-cigarettes online, according to two sources familiar with its plans.
The Ottawa-based company provides the underlying infrastructure that lets millions of merchants operate and scale e-commerce channels. It has been in talks since last year with a bipartisan coalition of 25 state attorneys general, who have been pushing Shopify to do more to clamp down on a booming market for vapes that lack the legally required licence for U.S. sales, or violate other laws.
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Unlicensed vapes, usually made in China, are widely available in the U.S. both online and in vape shops, convenience stores or gas stations despite being illegal to import or sell. The expected Shopify ban, first reported by Reuters, would mark the most significant win yet for the state law enforcement officials, who have been targeting the industry's infrastructure over concerns that illegal vapes put public health at risk.
"We've always prohibited illegal activity and take action when we become aware of merchants violating our policies," a Shopify spokesperson said in a statement, adding such internal decisions take into account global legal frameworks and are not based on feedback from any one group.
"We adjust our enforcement approach when legal changes call for it," the spokesperson said.
The expected ban could disrupt e-commerce sales and have a "chilling effect" on sellers, one of the sources said.
The illegal U.S. market for vapes is currently worth some $9 billion, according to British American Tobacco (BATS.L), opens new tab, whose U.S. business has been hit hard by their proliferation.
BAT did not respond immediately to a request for comment.
The U.S. Food and Drug Administration has to date granted marketing authorisation to just 45 e-cigarette products, mostly tobacco-flavoured -- an approach that big tobacco companies such as BAT argue has stifled the legal market and fuelled illegal sales.
ILLEGAL VAPES DEPEND MORE ON E-COMMERCEIt was not immediately clear whether the ban would apply beyond the United States. Shopify did not answer a question on its geographic scope.
Other countries like India have banned vape sales altogether, while in Australia they can only be sold in pharmacies.
In the U.S., the Shopify ban will apply to all vapes regardless of whether they have required FDA authorisation, the two sources said.
A relatively small portion of authorised vape sales in the U.S. occur online, which should mean a limited effect on licensed players such as BAT or e-cigarette maker Juul, one of the sources said. E-commerce is a more important channel for illegal vapes, though they are also mostly sold in brick-and-mortar stores.
Separately, credit card company Mastercard (MA.N), opens new tab warned partners responsible for adding merchants to its network that unlicensed vape sales violate its standards, according to a global notice issued to partners in May and obtained by Reuters.
The state attorneys general in an April letter pushed Mastercard and other major card networks or payment processors to take stronger action to prevent their networks from being used to facilitate illegal vape sales.
Those partners, also known as acquirers, are financial institutions that act as a go-between to complete credit-card transactions.
Mastercard's notice said when acquirers register a merchant they are "attesting that all appropriate controls are in place" to make sure their activities don't violate the law. It recommended those companies implement controls involving reviewing and approving a merchant's product inventories, along with transaction and invoice monitoring.
Mastercard said it would launch investigations if stores selling illegal vapes used its services, potentially targeting both retailers and acquirers, with the risk of fines if they do not comply with their standards. "We have zero tolerance for unlawful activity on our network," Mastercard said.
($1 = £0.7581)Reporting by Emma Rumney; Additional reporting by Manya Saini and Deborah Sophia in Bengaluru; Editing by Lisa Jucca and David Gaffen
Our Standards: The Thomson Reuters Trust Principles., opens new tab
FedEx klesl téměř o 5 % po zklamání z výhledu na zisk na fiskální rok 2027, když EPS 16,90–18,10 USD zaostal za odhadem 19,86 USD. Čtvrtletní výsledky přitom překonaly očekávání: EPS 6,31 USD při tržbách 25 miliard USD.
FedEx Corp (NYSE:FDX, XETRA:FDX) shares fell nearly 5% in after-hours trading on Tuesday after the package delivery company issued fiscal 2027 earnings guidance that came in below Wall Street expectations, overshadowing stronger-than-expected fourth quarter results.
FedEx projected fiscal 2027 adjusted diluted earnings per share of $16.90 to $18.10, below the consensus analyst estimate of $19.86.
The company also expects revenue growth of 11% year-over-year.
For the fourth quarter of fiscal 2026, FedEx reported adjusted earnings per share of $6.31 on revenue of $25 billion, exceeding analysts' estimates of $5.92 per share and $24.01 billion in revenue.
Revenue increased 12.6% from a year earlier, while adjusted EPS rose from $6.07 in the prior-year quarter.
“Team FedEx delivered an impressive finish to a strong fiscal year, providing excellent service to our customers and successfully executing on our transformation initiatives,” FedEX CEO Raj Subramaniam said.
“With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”
NDA submission supported by positive Phase 3 data recently published in JAMA Neurology.Ecopipam is a first-in-class selective dopamine D1 receptor antagonist with a novel mechanism of action and has received FDA Orphan Drug and Fast Track designationsEcopipam could be the first FDA-approved treatment option for pediatric Tourette syndrome in more than a decade, if approved.
TEL AVIV, Israel, June 18, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced the submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for ecopipam, a first-in-class investigational therapy for the treatment of pediatric Tourette syndrome.
“The NDA submission for ecopipam is a significant milestone for a potential first-in-class treatment option in pediatric Tourette syndrome,” said Eric Hughes, M.D., Ph.D., Executive Vice President, Global R&D and Chief Medical Officer of Teva. “This reflects the momentum in our innovative pipeline through our recent acquisition of this important asset, and advances our Pivot to Growth strategy and commitment to bringing differentiated medicines for patients.”
The NDA submission is supported by positive Phase 3 data recently published in JAMA Neurology, which showed that ecopipam significantly delayed time to relapse compared with placebo in pediatric patients with Tourette syndrome who had achieved a clinical response during the open-label treatment period. In the study, ecopipam demonstrated a statistically significant benefit on the primary efficacy endpoint in pediatric patients (p = 0.008) and was generally well tolerated, with the most common adverse events related to ecopipam therapy including somnolence, insomnia, anxiety, fatigue and headache.
About Tourette Syndrome
Tourette syndrome is a chronic neuro-developmental disorder character by involuntary motor and vocal tics beginning in childhood, often between 5 and 10 years of age. For people living with Tourette syndrome, symptoms can be frequent, visible, and disruptive, affecting everyday life. Despite the current treatment options available, many patients continue to experience inadequate treatment control or treatment-limiting side effects, underscoring the need for additional options.
About ecopipam
Ecopipam is a first-in-class investigational therapy designed to block dopamine signaling at the D1 receptor. D1 receptor hypersensitivity may contribute to repetitive and compulsive behaviors associated with Tourette syndrome.
Ecopipam has received Orphan Drug and Fast Track designations from the FDA for the treatment of pediatric patients with Tourette syndrome. Orphan Drug designation is reserved for patient populations of 200,000 or fewer.
Results from the Phase 3 study in Tourette syndrome were recently published in JAMA Neurology. The primary efficacy endpoint in the study was time to relapse (based on YGTSS-TTS scale) for pediatric patients who were stable and responding to ecopipam. The study showed statistical significance between ecopipam and placebo for the primary efficacy endpoint in pediatric patients (p = 0.008). Ecopipam was generally well-tolerated in the study and the most common adverse events related to ecopipam therapy were somnolence (n = 24 [11.1%]), anxiety (n = 21 [9.7%]), headache (n = 21 [9.7%]), insomnia (n = 19 [8.8%]), tic (n = 17 [7.9%]), and fatigue (n = 14 [6.5%]).
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause Teva’s future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements.
All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, you can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “developing,” “target,” “may,” “expand,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future performance. Important factors that could cause or contribute to such differences include risks and uncertainties relating to: our ability to successfully develop, obtain regulatory approval for and commercialize ecopipam; our ability to successfully compete in the marketplace including our ability to develop and commercialize ecopipam and additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to execute on our organizational transformation and to achieve expected cost savings; our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Teva oznámila, že údaje k Austedu XR a Austedu podporují jejich širší využití a mohou posílit podíl na trhu. V prvním čtvrtletí tržby vzrostly na 4 miliardy USD a EPS stoupl o 72 % na 0,31 USD.
Teva Pharmaceuticals (TEVA +3.14%) is morphing from a generic drug maker into one that develops more innovative -- and profitable -- drugs. The stock is up more than 10% this year, and more than 95% over the past year.
On June 8, the company released data regarding its therapies, Austedo and Austedo XR (extended relief), at the Psych Congress Elevate. The three-year study showed that while more than 50% of tardive dyskinesia patients saw symptom improvement in controlling involuntary movements within 15 weeks, an additional 23% achieved success with long-term treatment.
This means that Austedo XR may be able to expand beyond its approved use to treat the involuntary movements (chorea) of Huntington's disease. The company also released a study on June 5 showing that 60% to 71% of Huntington's disease chorea patients experienced improvement with Austedo or Austedo XR.
This data provides doctors with strong therapeutic justification to prescribe Austedo or Austedo XR over competitors, securing market share for years to come. Here's one more reason to buy Teva stock, and one reason not to.
Image source: Getty Images.
The company's pivot is becoming more profitable In the first quarter of 2026, the company reported revenue of $4 billion, up 2% year over year. Its innovative brands, Austedo, migraine med Ajovy, and long-acting schizophrenia therapy Uzedy, together grew revenue by 41% over the same period last year. Earnings per share (EPS) rose 72% year over year, to $0.31. The key point is that the company's new drugs are offsetting its declining generic sales.
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Meanwhile, the company's application for a long-acting version of olanzapine for once-monthly treatment of schizophrenia is currently under review by the Food and Drug Administration (FDA).
This structural pivot expanded Teva's non-GAAP gross profit margin to 52.9% in Q1. The company is generating healthy free cash flow, estimated at $2 billion to $2.4 billion this year, which is being actively used to pay down its heavy debt load.
In April, the Israeli pharma struck a deal to acquire Emalex Biosciences for $700 million upfront. This included ecopipam, a dopamine D1 receptor antagonist that's en route to an FDA submission for Tourette syndrome this year. The drug has already received FDA fast-track and orphan drug designations.
Disappointing guidance, supply issues Teva's overall full-year 2026 financial guidance disappointed Wall Street. The company projected total 2026 revenue of $16.4 billion to $16.8 billion -- representing flat to slightly negative growth compared to 2025. That helps explain why the stock has fallen more than 3% since Teva released its Q1 earnings on April 29.
This stagnation is primarily due to intense generic competition eating into other parts of the portfolio (such as the generic version of the cancer drug Revlimid) and a drop-off in one-time milestone payments from partnerships (such as Sanofi). Because Austedo XR is carrying so much weight on its shoulders, any future slowdown in its adoption could leave Teva with very few places to hide, capping the stock's near-term upside until its next-generation immunology pipeline begins to commercialize in 2027.
The other concern is that ongoing conflicts in the Middle East and the blockade of the Strait of Hormuz have disrupted the movement of active pharmaceutical ingredients, and rising energy costs make it more expensive to ship drugs.
It's still a company headed in the right direction The company's move to pursue growth is obviously paying off, and its innovative drugs target conditions with unmet needs, giving them less competition.
Teva received FDA approval in March for biosimilar Ponlimsi to treat osteoporosis and bone loss. The company's pipeline includes six additional biosimilars that are expected to receive regulatory decisions this year. One of the most promising is omalizumab, a biosimilar to Xolair, made by Novartis (NVS +0.79%) and Roche (RHHBY +2.50%) to treat chronic hives.
The stock is trading at less than 15 times forward earnings, and considering its potential catalysts this year, that still seems like a bargain.
Key Takeaways Mastercard posted 16% revenue growth in Q1 2026; value-added services now contribute nearly 41% of revenues.American Express grew billed business 10% and added over 70% of new accounts through fee-based products.Mastercard's average analyst price target implies 28.7% upside versus 6.3% for American Express. The global payments industry continues to benefit from the ongoing migration from cash to electronic transactions, supported by rising card usage, expanding e-commerce activity and growing demand for digital payment solutions worldwide. As consumers and businesses increasingly embrace digital commerce, investors remain focused on companies that can sustain transaction growth while adapting to changing payment trends.
Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) are two of the most prominent names in the payments space, making them a natural comparison for investors seeking exposure to this long-term trend. While both benefit from higher payment volumes and global spending activity, their business models differ significantly. MA primarily operates a payment network, whereas AXP combines network services with card issuance and lending, resulting in distinct growth drivers, revenue mixes and risk profiles.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock offers greater upside right now.
The Case for MastercardMastercard, with a market cap of $435.6 billion, generates most of its revenues from payment processing and network services rather than lending activities. This network-centric model allows the company to benefit from rising payment volumes and cross-border transactions while maintaining relatively limited credit exposure. Growth is increasingly supported by value-added services, real-time payments and commercial payment solutions, which broaden revenue sources beyond traditional card spending.
In the first quarter of 2026, the company’s net revenues rose 16% year over year, along with 12% growth in payment network net revenues. It delivered 22.4% growth in value-added services and solutions revenues in the first quarter, supported by demand for cybersecurity, fraud prevention, analytics and customer engagement solutions, and now contributes to nearly 41% of the company’s net revenues. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.5%.
Mastercard’s expanding network continues to create opportunities for additional revenue streams. Switched transactions now account for more than 70% of transaction volume, up from about 60% in 2020, generating richer data that supports the growth of higher-margin services and strengthens customer relationships.
The company is also positioning itself for emerging payment technologies through investments in agentic commerce and digital assets. Partnerships with OpenAI and other technology firms, the rollout of Verifiable Intent and the announced BVNK acquisition strengthen its ability to facilitate secure transactions across both traditional and digital payment ecosystems.
MA balances investments in innovation with shareholder returns through dividends and buybacks, supporting sustainable long-term growth despite regulatory and competitive pressures. In first-quarter 2026, it repurchased $4 billion of stock and bought an additional $1.7 billion through April 27, 2026, while paying $777 million in dividends for the quarter. The company maintains a solid capital position with $7.9 billion in cash, while short-term debt amounted to $1.7 billion as of March 31, 2026. Its return on capital of 62.16X is significantly higher than AXP’s 12.35X and the industry’s 28.17X.
The Case for American ExpressUnlike Mastercard, American Express, with a market cap of $232.4 billion, operates an integrated model that combines payment network services with card issuance and lending. It continues to benefit from strong spending activity among affluent consumers and younger cardholders. In the first quarter of 2026, billed business increased 10% year over year, while more than 70% of newly acquired accounts came from fee-based products. These trends support both spending growth and recurring fee revenues.
The company continues to strengthen its premium value proposition through travel, dining, entertainment and sports-focused offerings. Recent initiatives include a global NFL partnership, expanded airport lounge investments and the planned acquisition of TheFork from Tripadvisor, which would enhance American Express' dining ecosystem and deepen engagement with card members across Europe. Continued additions to its hotel portfolio further support customer loyalty and spending activity across its premium card base. In the first quarter of 2026, total revenues (net of interest expenses) increased 11% year over year, while total transactions rose 10%. The company beat earnings in three of the past four quarters and missed once, with an average surprise of 4%.
Commercial payments represent another key growth avenue. AXP outlined plans for eight new or enhanced commercial products and capabilities, including cash-back offerings and expense-management tools. These initiatives broaden the company's presence across small-business, middle-market and corporate customers.
Artificial intelligence is becoming an increasingly important part of the growth strategy. The launch of the ACE Developer Kit and Agent Purchase Protection extends AXP's presence into AI-powered commerce, while ongoing investments in technology aim to enhance security, customer experiences and operational efficiency across its closed-loop network.
As of March 31, 2026, the company had $53.8 billion in cash and cash equivalents against just $1.7 billion in short-term borrowings. AXP returned $2.3 billion to its shareholders in the first quarter of 2026 through dividends and buybacks. In March 2026, it raised its quarterly dividend by 16% to 95 cents per share. Its dividend yield of 1.1% is higher than MA’s 0.7%.
Price Performance ComparisonOver the past six months, shares of AXP have shed less value than those of MA. Meanwhile, the S&P 500 has increased 8.9% during this time.
How Do the Estimates Compare for MA & AXP?The Zacks Consensus Estimate favors MA at this stage. The consensus estimate for MA’s 2026 earnings indicates a 15.2% increase from a year ago. Meanwhile, the consensus estimate for revenues suggests 12.8% growth. On the other hand, the consensus estimate for AXP’s 2026 earnings indicates 14.4% growth from a year ago, while the same for revenues suggests a 9.7% rise.
Valuation: MA vs. AXPValuation-wise, Mastercard trades at a premium forward price-to-earnings multiple relative to AXP, reflecting its capital-light structure and lower risk profile. MA currently trades at a forward P/E of 23.46X, higher than AXP’s 18.15X. The valuation gap underscores the market’s preference for Mastercard’s stability and diversified growth drivers.
Image Source: Zacks Investment Research
Price TargetMA currently trades below its average analyst price target of $645.19, implying a 28.7% potential upside from current levels. AXP also trades below its average analyst price target of $362.35, implying a 6.3% potential upside from current levels.
ConclusionBoth Mastercard and American Express are well-positioned to benefit from the continued expansion of digital payments, supported by strong brands, global reach and healthy spending trends. AXP offers exposure to affluent consumers, growing fee-based products and an integrated payments-and-lending model, while MA benefits from its network-focused structure, broad acceptance footprint and expanding portfolio of value-added services.
Despite trading at a premium valuation, Mastercard’s asset-light business model, faster growth profile and expanding revenue streams suggest greater upside potential than American Express at current levels, even though both companies currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akcie Pfizeru klesly téměř o 3 % po oznámení odchodu CFO Davea Dentona. Firma zároveň potvrdila výhled na rok 2026: tržby 59,5–62,5 mld. USD a upravený EPS 2,80–3,00 USD.
Key Takeaways Pfizer shares fell nearly 3% after CFO Dave Denton announced he will leave on Aug. 15.PFE reaffirmed 2026 guidance, expecting $59.5B-$62.5B in revenue and $2.80-$3.00 adjusted EPS.Pfizer named Cecile Guega interim CFO and said Denton will support the transition. Shares of Pfizer (PFE - Free Report) declined nearly 3% on Thursday after the company announced the departure of its chief financial officer (CFO), Dave Denton.
Denton will step down from his current role on Aug. 15 for “a professional opportunity outside of the pharmaceutical industry in consumer goods.” The company has initiated a comprehensive internal and external search for a permanent successor. Cecile Guega, currently senior vice president of finance for Pfizer’s global biopharmaceutical business, will serve as interim CFO beginning Aug.16. Guega will work alongside Denton during the transition period to ensure continuity across the company’s financial operations.
Denton’s resignation comes as a surprise, particularly as Pfizer continues to execute its post-pandemic transformation strategy. Since joining the company in May 2022, Denton has overseen several key initiatives, including cost realignment efforts, business development transactions (which include Seagen and Metsera deals) and capital allocation decisions aimed at stabilizing earnings following the sharp decline in COVID-related revenues.
Despite the leadership change, Pfizer reaffirmed its previously issued 2026 financial guidance, signaling that the transition is not expected to alter its near-term strategic priorities or operational outlook.
PFE Stock PerformanceYear to date, the company’s shares have gained over 1% compared with the industry’s 3% growth.
Image Source: Zacks Investment Research
Pfizer’s 2026 GuidanceThe company expects total revenues for 2026 to be between $59.5 billion and $62.5 billion. The range indicates a decline from 2025 revenues of $62.6 billion due to lower revenues from COVID products and loss of revenues from the upcoming patent cliff.
Pfizer expects adjusted EPS for the year in the range of $2.80-$3.00, which represents a decline from the 2025 EPS of $3.22 due to the dilutive impact of last year’s acquisition and licensing deals, lower COVID revenues and higher taxes.
Adjusted gross margin is expected to be in the mid-70% range, similar to the past several years. Adjusted R&D expenses are expected to be in the range of $10.5 billion to $11.5 billion in 2026, while adjusted SI&A spending is targeted between $12.5 billion and $13.5 billion.
The adjusted effective tax rate is expected to be approximately 15% in 2026.
PFE’s Zacks RanksPfizer currently carries a Zacks Rank #3 (Hold).
Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Immunocore (IMCR - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss per share of 88 cents to earnings of 6 cents. Over the same period, estimates for 2027 EPS have risen from 24 cents to 87 cents. IMCR’s shares have lost nearly 18% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters but missed the mark on one occasion, delivering an average surprise of 46.66%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 EPS have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.66 to $4.27. INDV’s shares are up nearly 7% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.44%.
Pfizer v příštích dvou letech nečeká žádnou velkou akvizici a místo toho chce urychlit transformaci pomocí AI. Cílem je rychlejší vývoj léků a vyšší efektivita.
Acquisitions can be a double-edged sword for companies, as they can quickly bolster revenue and growth opportunities but also add costs and inefficiencies. Healthcare giant Pfizer (PFE +1.31%) has been involved in numerous acquisitions in recent years as it has worked to strengthen its prospects; a major risk for the stock has been uncertainty about where its growth will come from, particularly as it faces patent cliffs on key drugs.
One of the largest deals Pfizer made was the $43 billion acquisition of oncology company Seagen in 2023. It was a major acquisition that gave it some promising cancer-fighting medicines. But Pfizer isn't expecting to make significant deals like this in the near future. Here's how it plans to adjust its strategy and what that could mean for investors.
Image source: Getty Images.
Pfizer looks to take a break from acquisitions When a company is aggressively pursuing acquisitions, it can make it difficult to avoid rising costs, as it may incur acquisition-related expenses and become bloated with additional workers and overhead.
On Pfizer's most recent earnings call, CEO Albert Bourla was asked if there would be any more significant acquisitions in the near future. Bourla indicated that nothing's on the horizon and that the healthcare company will instead focus on enhancing its different businesses with artificial intelligence (AI).
"We think that right now, in the next two years, it is the time to execute on AI transformation of these organizations. That requires not the disruption of a mega merger."
Bourla sees tremendous potential with AI to develop new medicines more quickly. Not only could this accelerate the company's long-term growth, but it may also yield greater cost savings and efficiency, leading to stronger financial results.
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Does this news make Pfizer's stock a better buy? Slowing down its acquisition strategy could be an advantageous move for Pfizer, particularly as it works to use AI to improve its processes. If these AI transformations result in stronger earnings and long-term growth prospects, it's what the stock may need to get out of its funk; shares of Pizer are down 35% in the past five years, as even a low valuation hasn't been enough of a reason to entice investors to buy the stock.
The good news, however, is that the company appears to be moving in the right direction, growing its business and looking for ways to enhance its operations with the help of AI. At less than nine times its estimated future earnings (based on analyst expectations), the stock is deeply discounted and offers investors an excellent margin of safety. Plus, it offers a tremendously high dividend yield of around 6.8%. There may be some uncertainty ahead, but overall, Pfizer may be one of the better bargains in the market right now.
Pfizer uvedl, že experimentální lék sigvotatug vedotin v pozdní studii rakoviny plic nesplnil primární cíl a nepřinesl statisticky významné zlepšení přežití oproti chemoterapii. Akcie v poobchodní fázi klesly o více než 1 %.
A Pfizer logo is shown at a research facility in the La Jolla neighborhood of San Diego, California, U.S., September 30, 2025. REUTERS/Mike Blake//File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesContinuing with ongoing trial that combines drug with KeytrudaPlans to explore using the drug with other experimental treatmentsShares fall 1%June 22 (Reuters) - Pfizer (PFE.N), opens new tab said on Monday that one of the key experimental drugs it picked up in its $43 billion 2023 acquisition of Seagen failed to improve survival when compared to chemotherapy in a late-stage trial of lung cancer patients who had already tried other treatments.
The drug, sigvotatug vedotin, did not show a statistically significant improvement in the study's primary endpoint of overall survival in adults with locally advanced, unresectable or metastatic non-squamous non-small cell lung cancer (NSCLC) versus the chemotherapy docetaxel, Pfizer said. The company's shares fell more than 1 percent in after-hours trading.
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Pfizer said that it was still confident in the potential of the drug due to a stronger survival trend in the patients who had received only one prior course of treatment, as well as data from an early stage trial where the drug was used in combination with Merck's (MRK.N), opens new tab Keytruda.
"In patients who had received only one prior line of therapy here, we did see very favorable trends in both progression-free survival and overall survival, suggesting that the drug is active and the payload is getting directly to the cancer cells," Pfizer Chief Oncology Officer said in an interview.
The company already has an ongoing late-stage trial of the drug in combination with Keytruda as a first-line treatment. It also plans to explore using the drug with other experimental cancer treatments in its pipeline.
Sigvotatug vedotin targets a protein known as integrin beta‑6. In the trial, Pfizer said it found no clear relationship between tumors expressing the protein and patient response to the drug.
Pfizer bought Seagen and its portfolio of targeted cancer therapies called antibody-drug conjugates in hopes of offsetting the steep fall in sales of its COVID-19 portfolio and generic competition for some top-selling drugs.
The company is continuing to develop other ADCs, it said, including some that also target the same protein, IB6.
Pfizer shares have dropped more than 50% since early 2023 as the drugmaker has worked to develop new blockbuster drugs. It has said it expects to return to stronger growth in 2028.
Additional reporting by Puyaan Singh in Bengaluru; Editing by Vijay Kishore and Stephen Coates
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Cisco zvýšila cíl zakázek na AI infrastrukturu pro fiskální rok 2026 na zhruba 9 miliard USD díky silné poptávce hyperscalerů. Zároveň čeká tržby 62,8–63 miliard USD a non-GAAP EPS 4,27–4,29 USD.
Key Takeaways CSCO shares trade at a premium, but AI demand and networking strength support the valuation.CSCO raised its fiscal 2026 AI infrastructure order target to about $9 billion on hyperscaler demand.CSCO expects fiscal 2026 revenues of $62.8-$63 billion and non-GAAP EPS of $4.27-$4.29. Cisco Systems (CSCO - Free Report) shares are trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 7.01X, higher than the Zacks Computer Networking industry’s 6.76X and Hewlett Packard Enterprise’s (HPE - Free Report) 1.3X. However, Cisco shares are trading at a discount compared with Arista Networks (ANET - Free Report) and Broadcom (AVGO - Free Report) . In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 16.78X and 13.61X, respectively.
CSCO Stock’s Valuation
Image Source: Zacks Investment Research
So, is the Cisco stock a buy at this level? Let’s find out.
AI Push & Strong Networking Portfolio Aids Cisco’s ProspectsYear to date (YTD), CSCO shares have appreciated 55.2%, outperforming the broader Zacks Computer & Technology sector, as well as Broadcom and Arista Networks, but lagging Hewlett Packard Enterprise. The broader sector, Hewlett Packard Enterprise, Arista Networks and Broadcom have jumped 20%, 97.4%, 29.5% and 18.9%, respectively, over the same time frame.
CSCO Stock’s Price Performance
Image Source: Zacks Investment Research
The outperformance can be attributed to strong AI revenues. Cisco raised its fiscal 2026 AI infrastructure order target from $5 billion to approximately $9 billion, reflecting stronger-than-expected hyperscaler demand. YTD, AI infrastructure orders have already reached $5.3 billion, exceeding the original annual target with one quarter remaining. The company expects to recognize approximately $4 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. Cisco expects at least $6 billion of AI-related revenues in fiscal 2027, indicating strong visibility into future growth.
Cisco is benefiting from a multi-year networking refresh cycle as third-quarter fiscal 2026 enterprise data center switching orders grew more than 40%, campus networking orders reached record levels, and wireless orders increased more than 40% year over year. CSCO believes AI-driven traffic growth will force enterprises to modernize networks over the next several years. The Acacia optics business generated more than $1 billion of orders in the third quarter of fiscal 2026 and is expected to grow over 200% in fiscal 2026, positioning Cisco to capture a larger share of AI networking spend.
The company’s refreshed security portfolio is gaining traction, with double-digit order growth in core security products and strong firewall momentum. The company is leveraging its unique position across networking, security, identity, and observability to address emerging AI security needs, including agentic AI security, AI Defense, Hypershield, and Zero Trust Access. Cisco’s management noted five consecutive quarters of high firewall win rates and expects security growth to improve exiting fiscal 2026.
Cisco’s proprietary Silicon One architecture has been a key differentiator. The company has secured multiple hyperscaler design wins and expects all high-end systems across its portfolio to be powered by Silicon One by fiscal 2029.
CSCO Offers Positive Q4 & FY26 GuidanceCisco expects non-GAAP earnings between $1.16 per share and $1.18 per share for the fourth quarter of fiscal 2026. Revenues are expected to be in the range of $16.7-$16.9 billion.
The Zacks Consensus Estimate for CSCO’s fourth-quarter fiscal 2026 revenues is pegged at $16.85 billion, indicating growth of 14.9% on a year-over-year basis. The consensus mark for CSCO’s earnings is currently pegged at $1.17 per share, unchanged over the past 30 days, indicating year-over-year growth of 18.2%.
For fiscal 2026, CSCO expects revenues to be in the $62.8-$63 billion range compared with $56.7 billion reported in fiscal 2025. Non-GAAP earnings are expected between $4.27 per share and $4.29 per share compared with $3.81 per share reported in fiscal 2025.
The Zacks Consensus Estimate for CSCO’s fiscal 2026 revenues is pegged at $62.95 billion, indicating growth of 11.1% from fiscal 2025. The consensus mark for CSCO’s fiscal 2026 earnings is currently pegged at $4.28 per share, up by a penny over the past 30 days, indicating year-over-year growth of 12.3%.
Here’s Why CSCO Stock is a Buy Right NowCisco is emerging as a major beneficiary of AI infrastructure spending, enterprise network modernization, AI security adoption, and its differentiated Silicon One platform. The company is seeing some of the strongest demand trends in its history, with broad-based order growth across networking, AI infrastructure, optics, and security. These trends are expected to help the stock rally and bode well for CSCO’s long-term prospects. These also justify the current premium valuation.
CSCO currently carries a Zacks Rank #2 (Buy), suggesting that it is the right time to start accumulating the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog i Cisco těží z rostoucí poptávky po observabilitě, ale Cisco má díky Splunku širší platformu a větší opakující se příjmy. DDOG se přitom obchoduje za výrazně vyšší ocenění než CSCO.
Key Takeaways DDOG is expanding its platform and AI observability capabilities, supporting customer adoption.CSCO strengthened observability through Splunk, growing ARR and subscription revenue.DDOG trades at a valuation premium to Cisco despite both benefiting from observability demand. Datadog (DDOG - Free Report) and Cisco Systems (CSCO - Free Report) are key players in the growing observability market, helping enterprises monitor and optimize complex IT environments. As cloud adoption, AI workloads and digital transformation initiatives accelerate, organizations are generating larger volumes of infrastructure, application and security data, driving demand for real-time monitoring and analytics solutions.
Observability platforms have become essential for maintaining performance, reliability and security across modern technology stacks. While Datadog offers a cloud-native observability platform, Cisco has strengthened its position through the Splunk acquisition, expanding its reach across observability, security and AI operations. Both companies are well-positioned to capitalize on the expanding observability opportunity.
Let's examine the fundamentals and growth drivers of both companies to determine which stock offers a better long-term investment opportunity.
The Case for DDOGDatadog continues to strengthen its position in observability through a platform expansion strategy that is driving higher customer adoption and spending. DDOG offers 26 products spanning infrastructure monitoring, application performance monitoring, log management, security and AI observability. This breadth has supported cross-selling momentum, with five products generating more than $100 million in annual recurring revenue (ARR) and three additional products contributing between $50 million and $100 million in ARR. Total ARR surpassed $4 billion in the first quarter of fiscal 2026, highlighting the increasing scale of the platform.
DDOG has been benefiting from strong enterprise demand. Revenues for first-quarter of fiscal 2026 increased 32% year over year, while free cash flow margin remained at 29%. Growth has been broad-based, with the non-AI customer cohort accelerating to the mid-20% range, indicating that demand extends beyond AI-native customers.
AI observability is emerging as a key catalyst. Datadog has expanded its capabilities through GPU Monitoring, LLM Observability and Bits AI offerings, enabling customers to manage complex AI environments. Adoption trends remain encouraging, with Datadog MCP Server tool calls quadrupling sequentially during the fiscal first quarter. DDOG is expanding security observability capabilities to address AI-specific threats while introducing deployment options that help customers meet data residency and compliance requirements.
Further growth is expected to be supported by FedRAMP High certification and a planned U.K. data center expansion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.31 billion, indicating 25.7% year-over-year growth.
The Case for CSCOCisco has been strengthening its observability position through the integration of Splunk, enabling it to offer a broader platform spanning observability and security analytics. Unlike Datadog, Cisco benefits from a large installed base across networking, data center and security infrastructure, creating opportunities to embed observability capabilities deeper within enterprise environments. This integrated approach is expected to support cross-selling and customer retention as organizations increasingly seek unified visibility across their IT operations.
CSCO has also been benefiting from strong enterprise technology spending trends. In the third quarter of fiscal 2026, revenues increased 12% year over year to $15.8 billion, while product orders grew 35% year over year, reflecting broad-based demand across enterprise, public sector and cloud customers. Cisco's recurring revenue profile continues to strengthen, with ARR reaching $31.2 billion and subscription revenues accounting for 49% of total revenues.
Agentic security observability is emerging as a key catalyst. Cisco has been expanding capabilities that combine observability, threat detection and automated response across enterprise environments. Hypershield and AI Defense extend visibility across AI deployments, while the pending acquisitions of Galileo and Astrix are expected to add agentic identity, access management and behavior monitoring capabilities, strengthening the company's observability and security portfolio.
Further growth is likely to be supported by Cisco's expanding software mix, strong cash generation and deep enterprise relationships. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $62.95 billion, indicating 11.11% year-over-year growth.
DDOG vs. CSCO: Price Performance and ValuationYear to date, shares of CSCO have jumped 55.2%, trailing DDOG's 64% return. Both stocks have benefited from strong AI-related demand, with Datadog's gain led by its AI observability catalysts and Cisco's supported by its broader networking, security and AI infrastructure base.
DDOG Outperforms CSCO YTD
Image Source: Zacks Investment Research
DDOG currently trades at a forward 12-month price-to-sales (P/S) multiple of 16.86X, well above CSCO’s 7.01X. Datadog's premium to Cisco appears difficult to justify given Cisco's expanding observability footprint through Splunk, larger recurring revenue base, broader enterprise reach and growing software subscription business.
DDOG Vs CSCO : Forward 12-Month P/S Valuation
Image Source: Zacks Investment Research
ConclusionBoth Datadog and Cisco are well-positioned to capitalize on the growing observability opportunity. While Datadog continues to deliver robust growth, Cisco has significantly strengthened its position through the integration of Splunk. Given its larger recurring revenue base, broader enterprise footprint and more attractive valuation, CSCO appears to offer a more compelling investment opportunity than DDOG.
DDOG and CSCO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Nejvyšší soud USA zamítl žalobu, která obviňovala Cisco z pomoci čínské vládě při pronásledování Falun Gongu. Rozhodnutí omezuje využití federálního zákona k žalobám na americké firmy za porušování lidských práv v zahraničí.
The Supreme Court on Tuesday issued a ruling that limits the use of a federal law to hold U.S. corporations liable for human rights abuses abroad when it dismissed a lawsuit that accused Cisco Systems of aiding the Chinese government's religious persecution of the Falun Gong movement.
The 6-3 ruling reversed a lower court's decision that had allowed a lawsuit filed by Falun Gong members in 2011 under the Alien Tort Statute of 1789.
The suit alleged that Cisco knowingly developed technology that enabled China's government to surveil and persecute Falun Gong members.
The Alien Tort Statute had been effectively dormant for nearly 200 years before lawyers started to use it in the 1980s to bring international human rights cases, and the Cisco suit questioned whether it can be used to hold corporations liable if they "aid and abet" human rights abuses through "accomplice liability."
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The Supreme Court dismissed the lawsuit accusing Cisco of aiding the persecution of Falun Gong in China. (Reuters/Evelyn Hockstein)
The Falun Gong movement was founded in China in 1992, and was banned by the Chinese Communist Party (CCP) in 1999, after thousands of the group's members appeared at the central leadership compound in Beijing to stage a silent protest. The group has called for its members to denounce the CCP and has been heavily critical of its leadership in China.
Justice Amy Coney Barrett authored the majority opinion which supported Cisco's argument that the law doesn't support holding companies liable for aiding and abetting human rights abuses.
"Courts cannot create new rights of action to remedy violations of international law, so there is necessarily no liability for aiding and abetting such violations," Barrett wrote as the ruling dismissed the claims against Cisco.
The Supreme Court's ruling split the justices along ideological lines, with the six conservative justices in the majority and the three liberals dissenting.
COMPUTER WARS HEAT UP AS CHINESE SUPERCOMPUTER TOPS ALL US MACHINES IN SPEED FOR FIRST TIME SINCE 2017
The Falun Gong movement is critical of the Chinese Communist Party and its members face persecution in China. (Yasin Ozturk/Anadolu Agency/Getty Images)
Paul Hoffman, a lawyer for the plaintiffs, said they were disappointed with the ruling and called for Congress to take action and create a law "so that victims of serious human rights violations at the hands of U.S. corporations may hold those corporations accountable in U.S. courts under the Alien Tort Statute."
Ticker Security Last Change Change % CSCO CISCO SYSTEMS INC. 119.83 -1.32 -1.09% Additionally, the Supreme Court issued an 8-1 decision that a similar law known as the Torture Victim Protection Act of 1991 didn't permit a group of plaintiffs to move forward with a lawsuit that sought to hold two Cisco executives liable for allegedly aiding and abetting torture.
GORDON CHANG: US SHOULD EXPAND SANCTIONS ON CHINA-LINKED NETWORKS TO HIT IRAN OIL REVENUE
Cisco called the allegations against them unfounded and offensive. (David Paul Morris/Bloomberg via Getty Images)
Plaintiffs accused Cisco of knowingly designing and implementing the "Golden Shield," which is an internet surveillance system used by the CCP to target dissidents, and they say China used the system to track and torture Falun Gong members.
FOX Business reached out to Cisco for comment. The company has called the allegations unfounded and offensive.
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The decision by the 9th Circuit Court of Appeals that was reversed by the Supreme Court had held the plaintiffs demonstrated plausible claims that Cisco provided technical assistance to the CCP and permitted it to proceed to discovery in advance of a trial. The Supreme Court's decision dismissed the lawsuit.
Akcie IBM v premarketu vzrostly téměř o 5 % poté, co JPMorgan zvýšil hodnocení na Overweight díky sílícímu softwaru a očekávanému přínosu AI. Software tvoří asi 45 % tržeb IBM, ale zhruba dvě třetiny konsolidovaného zisku.
Shares of IBM climbed nearly 5% in premarket trading on Tuesday after JPMorgan upgraded the technology company, citing increasing confidence in its software business and potential benefits from growing artificial intelligence adoption.
JPMorgan analyst Brian Essex upgraded IBM to Overweight from Neutral and raised his price target to $291 from $270.
The analyst said expectations for software acceleration in the second half of 2026 have strengthened the firm's outlook on the stock.
The upgrade comes as IBM continues a multiyear transformation from a hardware and services provider into a software-led platform focused on hybrid cloud and artificial intelligence technologies.
JPMorgan highlighted several growth drivers, including momentum from Red Hat and OpenShift migration activities.
The firm pointed to OpenShift's role in supporting the adoption of IBM's AI-driven container platform among enterprises.
The analysts also noted accelerating automation demand following IBM's acquisition of HashiCorp, which management said is receiving increasing support from senior corporate executives.
IBM's software segment has become the primary earnings engine for the company.
According to JPMorgan, software now accounts for roughly 45% of IBM's revenue but generates approximately two-thirds of consolidated profit.
"We view the continued shift toward software as positive considering the higher-margin, ratable nature of software with better cash conversion and a higher-quality earnings stream that supports a higher multiple than the hardware and services businesses," the analysts said.
JPMorgan also said that if IBM becomes a significant beneficiary of rising AI demand, the stock could see further valuation expansion.
Separately, Morgan Stanley raised its price target on IBM to $267 from $225 while maintaining an Equal Weight rating.
The firm noted that recent earnings reports from Dell and Hewlett Packard Enterprise demonstrated that enterprise server demand has remained stronger than expected despite higher prices driven by compute shortages, hardware refresh cycles and growing AI infrastructure requirements.
Morgan Stanley added that Wall Street expectations for 2026 and 2027 "look too low" and increased its earnings-per-share estimates by 5% to 6% for companies with exposure to computing demand.
IBM may also benefit from fresh support for quantum computing from the US government.
Chief Executive Officer Arvind Krishna attended the White House on Monday as President Donald Trump signed two executive orders designed to accelerate domestic quantum computing development and strengthen cybersecurity protections against quantum-powered threats.
The first executive order directs the development of "the first-ever quantum computer powerful enough for scientific research," with the goal of locating the system in a national laboratory by 2028.
The second order accelerates the federal government's transition to post-quantum cryptography by 2031.
"When President Trump published a letter to me in early 2025, he prioritized quantum as a key industry for America to lead the world alongside AI and nuclear energy," said Michael Kratsios, the president's top advisor on science and technology policy.
Industry participants are working toward achieving fault tolerance by the end of the decade, a milestone that would allow quantum computers to operate reliably even when individual components experience failures or disruptions.
The latest policy initiatives add another potential growth catalyst for IBM as it expands its presence in artificial intelligence, hybrid cloud software, and next-generation computing technologies.
UnitedHealth plánuje investovat 3 miliardy USD do umělé inteligence v letech 2026 a 2027. Technologie už podle firmy přináší návratnost 2:1 a letos může snížit provozní náklady téměř o 1 miliardu USD.
UnitedHealth says AI is driving 2-to-1 returns and could cut operating costs by almost $1 billion this year. Summary
AI is becoming central to UnitedHealth’s cost-cutting and efficiency push.
UnitedHealth Group UNH is putting artificial intelligence at the center of its turnaround strategy as the company looks to recover from last year's profit collapse. The largest US health insurer plans to invest $3 billion in AI across 2026 and 2027, with executives saying the technology is already generating a 2-to-1 return by automating manual work, improving efficiency, and potentially reducing friction for patients.
The company is using AI across a wide range of administrative tasks, from reading medical chart summaries to nurses on the road, to analyzing millions of customer calls, to testing AI agents that call doctors' offices to schedule appointments. UnitedHealth also expects AI to help reduce operating costs by almost $1 billion this year, while Optum Real, a coverage-checking system for medical providers, has processed about a billion transactions since launching last year.
Wall Street appears focused on the potential cost savings, with Morgan Stanley analysts noting that insurers and medical providers spend $80 billion a year on administrative transactions. Still, UnitedHealth may need to convince a skeptical public that AI will benefit patients, not just the bottom line, as the company faces lawsuits over insurer algorithms and scrutiny after a federal inspector general report linked a naviHealth algorithm to higher denial rates that were almost always overturned on appeal.
Berkshire Hathaway v 1. čtvrtletí zcela opustila UnitedHealth a David Tepper svůj podíl výrazně snížil. Ve stejném kvartálu UNH vykázala upravený EPS 7,23 USD a tržby 111,72 miliardy USD.
Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B | BRK.B Price Prediction) fully exited its UnitedHealth Group (NYSE:UNH) position in Q1 2026, and David Tepper’s Appaloosa Management meaningfully reduced its UNH stake in the same quarter. Chase Coleman also sold UnitedHealth shares in Q1. Meanwhile, the sell-side stayed bullish, with a consensus target of $407.38 and 22 buy or strong buy ratings against a single sell.
Two of the most scrutinized capital allocators in the business walked out the same door, in the same quarter. That is worth thinking about.
What Berkshire and Tepper walked away from UNH is not a broken business. Q1 2026 produced adjusted EPS of $7.23 against a $6.61 consensus, revenue of $111.72 billion, and a medical care ratio that improved 90 basis points to 83.9%. Management raised full-year adjusted EPS guidance to greater than $18.25. The stock is up 22.66% year to date through June 17 and 32.82% over the trailing year.
The path to get there involved shrinking. UnitedHealthcare lost 965,000 Medicare Advantage members in Q1 2026 alone, and the 2026 plan calls for a 2.3 to 2.8 million membership contraction from exits of unprofitable contracts. Margin recovery achieved by shedding members is real. It is also structurally different from margin recovery driven by pricing power.
The thesis behind the exits Three forward-looking pressures appear to be sitting on the trade. First, preliminary 2027 Medicare Advantage rate announcements came in below expectations, the same catalyst SGA Global Growth Fund cited on June 17, 2026 when it sold its entire UNH stake. Second, a federal OIG report on June 12, 2026 documented post-hospital care denial rates of 51 to 80% at UnitedHealth’s Medicare Advantage plans, well above peers. Fairview Health Services said the same week it will stop accepting UnitedHealthcare Medicare Advantage in 2027, affecting more than 11,000 patients.
Third, Optum Health’s profitability is rebuilding slower than the Street modeled. Q1 2026 Optum operating earnings of $3.3 billion still trail the prior-year $3.89 billion, even after Q3 2025’s collapse to $255 million from $2.2 billion. Forward P/E sits at 22x, expensive against quarterly earnings growth of 0.7% and revenue growth of 2%.
What this signals for a retirement portfolio Institutional exits do not automatically equal a verdict. Berkshire trims names for tax, concentration, and opportunity-cost reasons that have nothing to do with a company being doomed. Tepper rotates aggressively and frequently. Both have been wrong on individual names. UNH’s 0.65 beta and 2.15% dividend yield still make it a defensive holding by construction.
The useful question is whether the bull case rests on assumptions Berkshire and Tepper rejected. Analyst price targets are anchored to Q1 2026’s margin reset and a clean ramp into 2027. If preliminary 2027 Medicare Advantage rates land where they hint, and if denial-rate scrutiny translates into either rate pressure or forced approvals, both feed straight back into the medical care ratio. That single variable took UNH down to a 52-week low of $228.48.
For a retirement-focused investor, the takeaway is narrower than copying the billionaires. The bullish thesis depends on a 2027 rate environment that two sophisticated holders apparently no longer want to underwrite. Worth weighing before deciding whether the year-to-date rally is the recovery itself or the exit ramp.
UnitedHealth má podle článku navrch díky diverzifikovanému modelu, silnější finanční pozici a širším růstovým možnostem než Humana. Humana sice roste v Medicare a CenterWell, ale ziskovost dál tlačí marže a náklady.
Key Takeaways UNH benefits from insurance, care delivery, pharmacy and technology businesses under one platform.UNH is expanding AI initiatives and value-based care efforts to improve efficiency and growth.Humana's Medicare membership and CenterWell revenues rose strongly, but EPS estimates remain pressured. UnitedHealth Group Incorporated (UNH - Free Report) and Humana Inc. (HUM - Free Report) are leading U.S. managed-care and health insurance companies operating in an industry that is navigating higher medical-cost trends, evolving reimbursement policies and changing regulatory requirements. Both companies have significant exposure to the Medicare Advantage market, making them key participants in one of the fastest-growing segments of the healthcare insurance landscape.
While UNH and HUM compete within the same sector and face many of the same industry dynamics, their business models and strategic priorities differ. UnitedHealth benefits from a diversified healthcare platform that spans insurance, health services and care delivery, whereas Humana maintains a greater focus on government-sponsored healthcare programs, particularly Medicare-related offerings. These distinctions influence their growth profiles, profitability trends and overall market positioning.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better bet now.
The Case for UNHUnitedHealth's growth is supported by the breadth of its healthcare ecosystem, which combines insurance, pharmacy services, care delivery and healthcare technology under one platform. The company generated total revenues of $111.7 billion, which grew 2% year over year in the first quarter of 2026, benefiting from pricing actions, a favorable member mix and improving operational execution across its businesses.
UnitedHealthcare unit remains a key earnings driver for the company, supported by its leading positions in Medicare Advantage, commercial insurance and government-sponsored programs. Recent pricing actions have improved alignment between premiums and healthcare costs, while a greater focus on affordability initiatives and cost management is helping stabilize margins. The business is also expanding digital engagement, with nearly half of its members now using its digital platform and digital interactions becoming the primary channel for customer service. In the first quarter of 2026, the unit’s revenues rose 1.9% year over year.
Another major contributor to future growth is Optum Health, where the company continues to strengthen its value-based care models. The segment served around 93 million people in first-quarter 2026. Greater care coordination, improved patient navigation and enhanced clinical oversight are helping reduce unnecessary hospital and post-acute care utilization, supporting better health outcomes while improving operating performance.
Technology is becoming another key pillar of UnitedHealth's strategy. The company plans to invest nearly $1.5 billion in AI-related initiatives in 2026 to streamline administrative processes, improve customer experiences and increase productivity across its operations. Meanwhile, Optum Insight is expanding AI-driven solutions for healthcare providers and payers, creating an additional avenue for growth beyond traditional insurance operations.
Alongside these efforts, investments in provider connectivity, automation and streamlined authorization processes are helping improve member experiences, drive operational efficiencies and strengthen the long-term competitiveness of the insurance segment. The company benefits from significant scale and diversification, although persistent medical-cost inflation and regulatory changes could weigh on earnings growth in the near term. UNH beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 0.8%.
Financially, UNH is in a solid position. It ended the first quarter of 2026 with $31.2 billion in cash and short-term investments, sufficient to cover its short-term borrowings and current maturities of long-term debt, which stands at $6.5 billion. Its total debt-to-capital of 40.75% is below HUM’s 42.9% and the industry’s 42.9%. In the first quarter of 2026, it paid dividends worth $2 billion.
The Case for HUMHumana's growth is being driven by continued expansion in its Medicare-focused businesses and the increasing scale of CenterWell, its healthcare services platform. In the first quarter of 2026, total revenues rose 23.5% year over year, supported by strong growth in Medicare Advantage and Medicare Part D membership. Total Medicare membership increased to nearly 11 million members, while Medicare Advantage membership climbed 23% year over year to 7.1 million in the quarter.
CenterWell remains a key strategic growth engine for Humana as the company continues to deepen its presence across primary care, home health and pharmacy services. The segment generated $6.1 billion in revenues in the first quarter of 2026, up nearly 20% from the prior-year period. By strengthening the integration between healthcare services and insurance operations, CenterWell supports member engagement, care coordination and long-term growth opportunities beyond the company's core insurance business.
The company is emphasizing disciplined pricing, benefit optimization and cost-management initiatives to improve Medicare Advantage margins following a period of elevated healthcare utilization. This approach is designed to strengthen earnings quality and support a more sustainable long-term growth profile while maintaining competitiveness in its core markets. It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 3.8%.
HUM is also investing in data interoperability, digital capabilities and quality-improvement initiatives that support its integrated care model. These efforts are intended to enhance healthcare outcomes, improve operational efficiency and strengthen Star Ratings performance over time, which remains a key driver of reimbursement levels, member retention and long-term profitability. However, competitive pressures and ongoing cost trends remain key factors that could influence earnings and margin recovery in the years ahead.
Nevertheless, as of March 31, 2026, the company had cash and cash equivalents of $5 billion, with short-term debt of $1.7 billion only, which implies a solid capital position. Humana has been returning excess capital to its shareholders in the past several years. It repurchased common shares in connection with employee stock plans for $107 million in the first quarter of 2026. The company also paid dividends of $107 million during the quarter. However, its dividend yield of 1% is below UNH’s 2.3%.
Price Performance ComparisonIn the year-to-date period, HUM shares have outperformed UNH, the industry and the S&P 500.
Price Performance – UNH, HUM, Industry & S&P 500
Image Source: Zacks Investment Research
How Do Estimates Compare for UNH & HUM?The Zacks Consensus Estimate favors UNH at this stage. The consensus estimate for UNH’s 2026 earnings indicates a 12.1% increase from a year ago. Over the past 60 days, the estimate has witnessed 14 upward revisions with no downward adjustments. Meanwhile, the consensus estimate for revenues suggests a 0.9% decline.
On the other hand, the Zacks Consensus Estimate for HUM’s 2026 revenues indicates 25.3% year-over-year growth, but the same for EPS signals a massive 47.4% decline. Over the past 60 days, the estimate has seen three upward revisions with two downward adjustments.
Valuation: UNH vs. HUMFrom a valuation standpoint, UnitedHealth may appear slightly more expensive than the industry at first glance, but it represents its size, operational consistency and business diversification. Humana’s stock currently trades at a higher multiple than UNH. UnitedHealth is currently priced at 20.57X forward 12-month earnings, compared to Humana’s 30.47X, both above the industry average of 17.46X.
Image Source: Zacks Investment Research
UNH currently trades below its average analyst price target of $412.56, implying a 2.9% potential upside from current levels. Meanwhile, HUM trades above its average analyst price target of $300.26, implying a 16.7% potential downside from current levels.
ConclusionBoth UnitedHealth and Humana are leading managed-care companies with strong positions in the Medicare Advantage market. Humana is benefiting from robust membership growth and the expansion of CenterWell, but its earnings recovery remains dependent on improving Medicare Advantage margins and reimbursement dynamics.
UnitedHealth, however, appears to have the edge due to its diversified business model, stronger financial position and broader growth opportunities across insurance, healthcare services and technology. Despite ongoing regulatory and cost-related pressures, its superior earnings growth outlook, attractive valuation and higher dividend yield make UNH the stronger healthcare stock at present, even though both companies currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FDA schválila rozšířené použití CAPVAXIVE společnosti Merck pro děti a dospívající ve věku 2 až 17 let se zvýšeným rizikem pneumokokového onemocnění. V USA je tak jedinou PCV specificky indikovanou a studovanou pro tuto skupinu.
RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced that the U.S. Food and Drug Administration (FDA) has approved an expanded indication for CAPVAXIVE® (Pneumococcal 21-valent Conjugate Vaccine) to include children and adolescents aged 2 through 17 years who have completed a primary pediatric pneumococcal vaccination series and have one or more chronic medical conditions that put them at an increased risk for pneumococcal disease. With this approval, CAPVAXIVE is the only PCV specifically indicated and studied in the U.S. for use in this patient population.
CAPVAXIVE is indicated for:
Active immunization for the prevention of invasive pneumococcal disease caused by Streptococcus pneumoniae serotypes 3, 6A, 7F, 8, 9N, 10A, 11A, 12F, 15A, 15B, 15C, 16F, 17F, 19A, 20A, 22F, 23A, 23B, 24F, 31, 33F and 35B in individuals 18 years of age and older and individuals 2 through 17 years of age who are at increased risk for pneumococcal disease; Active immunization for the prevention of pneumonia caused by S. pneumoniae serotypes 3, 6A, 7F, 8, 9N, 10A, 11A, 12F, 15A, 15C, 16F, 17F, 19A, 20A, 22F, 23A, 23B, 24F, 31, 33F and 35B in individuals 18 years of age and older. CAPVAXIVE should not be administered to individuals with a history of a severe allergic reaction (e.g., anaphylaxis) to any component of CAPVAXIVE or to diphtheria toxoid; see additional Select Safety Information below.
The indication for the prevention of pneumonia caused by S. pneumoniae serotypes 3, 6A, 7F, 8, 9N, 10A, 11A, 12F, 15A, 15C, 16F, 17F, 19A, 20A, 22F, 23A, 23B, 24F, 31, 33F, and 35B is approved under accelerated approval based on immune responses as measured by opsonophagocytic activity (OPA). Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial.
“Children and adolescents with certain chronic conditions are at an increased risk for pneumococcal disease, including pneumonia, meningitis, and bloodstream infections,” said Dr. Rotem Lapidot, Chief of Pediatric Infectious Diseases at Rambam Health Care Campus, investigator, STRIDE-13 trial. “This approval recognizes the potential of CAPVAXIVE to deliver additional protection by including serotypes not contained in approved primary pediatric PCV series, and represents a new approach to helping protect children and adolescents at increased risk for pneumococcal disease.”
The approval is based on data from the Phase 3 STRIDE-13 trial, which evaluated CAPVAXIVE compared to PPSV23 (pneumococcal 23-valent polysaccharide vaccine) in children and adolescents aged 2 through 17 years who completed a primary pediatric pneumococcal vaccination series and have one or more chronic medical conditions that put them at an increased risk of pneumococcal disease. See “STRIDE-13 Clinical Data Supporting Approval” below for additional details.
“While CAPVAXIVE was specifically designed for adults, it may also offer additional disease protection for this specific population of children and adolescents, when given after the primary pediatric pneumococcal vaccination series,” said Dr. Paula Annunziato, senior vice president, infectious diseases and vaccines, global clinical development, Merck Research Laboratories. “The approval of CAPVAXIVE for children and adolescents at increased risk for pneumococcal disease demonstrates our commitment to addressing this disease in people of all ages, not only addressing an unmet need, but also reinforcing Merck’s longstanding commitment to public health and infectious diseases.”
The expanded indication for CAPVAXIVE complements existing primary pediatric pneumococcal vaccination series for children and adolescents at increased risk for pneumococcal disease. According to a 2025 study of 2015-2019 CDC ABC surveillance data, including three groups, one of which consisted of children <18 years old (age range 31 to 109 months; n=219) with at least one risk condition for invasive pneumococcal disease (IPD) such as chronic heart disease, chronic lung disease, diabetes, and chronic kidney disease, CAPVAXIVE covers the serotypes responsible for ~79% of IPD cases. In this risk group, the 11 unique serotypes covered by CAPVAXIVE account for ~40% of IPD cases. These values are based on CDC epidemiologic data and do not reflect the efficacy of CAPVAXIVE. There are currently no studies evaluating the efficacy of CAPVAXIVE.
About CAPVAXIVE
CAPVAXIVE is Merck’s 21-valent pneumococcal conjugate vaccine indicated for active immunization for the prevention of invasive disease and pneumonia in adults 18 years of age and older and for the prevention of invasive disease in children and adolescents aged 2 through 17 years who have one or more chronic medical conditions that put them at an increased risk of pneumococcal disease. CAPVAXIVE was specifically designed to help address the Streptococcus pneumoniae serotypes predominantly responsible for IPD in adults, including eight unique serotypes, 15A, 15C, 16F, 23A, 23B, 24F, 31 and 35B compared to other approved pneumococcal vaccines. CAPVAXIVE is administered as a single dose.
CAPVAXIVE helps provide coverage against the serotypes responsible for approximately 82% of IPD cases in adults 50 years of age and older, compared to ~54% by PCV20, based on national-level CDC data from 2019-2023. These values are based on CDC epidemiologic data and do not reflect the efficacy of the respective vaccines. There are currently no studies comparing the efficacy of CAPVAXIVE and PCV20.
With this approval, CAPVAXIVE is also indicated for the prevention of invasive disease in children and adolescents aged 2 through 17 years who have one or more chronic medical conditions that put them at an increased risk for pneumococcal disease.
Select Safety Information for CAPVAXIVE in Children and Adolescents at Increased Risk for Pneumococcal Disease in the U.S.
Do not administer CAPVAXIVE to individuals with a history of a severe allergic reaction (e.g., anaphylaxis) to any component of CAPVAXIVE or to diphtheria toxoid.
Syncope may occur with administration of injectable vaccines.
Individuals with altered immunocompetence, including those receiving immunosuppressive therapy, may have a reduced immune response to CAPVAXIVE.
The most commonly reported (>10%) solicited adverse reactions in individuals 18 through 49 years of age who received CAPVAXIVE were: injection-site pain (73.1%), fatigue (36.0%), headache (27.5%), myalgia (16.4%), injection-site erythema (13.8%), and injection-site swelling (13.3%).
The most commonly reported (>10%) solicited adverse reactions in individuals 50 years of age and older who received CAPVAXIVE were: injection-site pain (41.2%), fatigue (19.7%), and headache (11.0%).
The most commonly reported (>10%) solicited adverse reactions in individuals 2 through 17 years of age who are at increased risk for pneumococcal disease were: injection-site pain (67.7%), injection-site erythema (24.3%), fatigue (20.1%), injection-site swelling (18.8%), headache (17.1%), malaise (13.3%), and irritability (11.6%).
Vaccination with CAPVAXIVE may not protect all vaccine recipients.
STRIDE-13 Clinical Data Supporting Approval
STRIDE-13 (NCT06177912) is a randomized, double-blind, active comparator-controlled Phase 3 study that evaluated individuals 2 through 17 years of age with one or more prespecified medical conditions (diabetes mellitus, chronic heart disease, chronic kidney disease, chronic liver disease, chronic lung disease) known to increase the risk of pneumococcal disease and who have previously completed a primary pneumococcal vaccination regimen at least 8 weeks prior to enrollment (n=874). Participants were randomized 3:2 to receive a single dose of CAPVAXIVE (n=527) or PPSV23 (n=347). Results from the study include:
CAPVAXIVE was noninferior to PPSV23 for the 12 shared serotypes and induced statistically significantly greater OPA GMTs compared to PPSV23 for the 9 serotypes unique to CAPVAXIVE; CAPVAXIVE also elicited immune responses to serotype 15B (cross-reactive to serotype 15C). In a post hoc analysis utilizing the same prespecified noninferiority criterion that was used for the shared serotypes, CAPVAXIVE was noninferior to PPSV23 for serotype 15B; The safety profile of CAPVAXIVE was generally comparable to PPSV23. Solicited adverse reactions following administration of CAPVAXIVE lasted a median of 2 days with most reactions lasting ≤3 days; The proportion of individuals reporting 1 or more serious adverse events (SAE) within 6 months postvaccination was 5.5% (n=29) in individuals vaccinated with CAPVAXIVE and 7.2% (n=25) in individuals vaccinated with PPSV23. There were no notable patterns or imbalances between vaccine groups for SAEs. One individual (0.2%) who received CAPVAXIVE had an SAE considered related to vaccination. This SAE was syncope (Grade 2, required hospitalization) and occurred approximately 3 minutes postvaccination. About Pneumococcal Disease
Pneumococcal disease is an infection caused by bacteria called Streptococcus pneumoniae. There are about 100 different types (referred to as serotypes) of pneumococcal bacteria, which can affect adults differently than children. Pneumococcal disease can be invasive or non-invasive. Non-invasive pneumococcal illnesses include pneumonia (when pneumococcal disease is confined to the lungs), whereas invasive pneumococcal illnesses include pneumococcal bacteremia (infection in the bloodstream), bacteremic pneumococcal pneumonia (pneumonia with bacteremia) and pneumococcal meningitis (infection of the coverings of the brain and spinal cord).
About Merck
At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter), Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA
This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
Please see the Prescribing Information for CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine) at https://www.merck.com/product/usa/pi_circulars/c/capvaxive/capvaxive_pi.pdf and the Patient Information/Medication Guide for CAPVAXIVE at https://www.merck.com/product/usa/pi_circulars/c/capvaxive/capvaxive_ppi.pdf .
Merck oznámil, že tulisokibart ve fázi 3 splnil primární i klíčové sekundární cíle u středně až těžce aktivní ulcerózní kolitidy. Ve 12. týdnu dosáhl klinické remise bez bezpečnostních obav.
Tulisokibart is the first anti-TL1A monoclonal antibody to demonstrate clinical remission at 12 weeks in moderately to severely active UC in a Phase 3 trial
Tulisokibart was designed to help address immuno-fibrosis, a key driver of disease progression in inflammatory bowel disease (IBD) and other immune-mediated inflammatory conditions
RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced positive topline results from the Phase 3 ATLAS-UC induction-only study (Study 2) evaluating tulisokibart (MK-7240), an investigational humanized monoclonal antibody targeting tumor necrosis factor-like cytokine 1A (TL1A), in patients with moderately to severely active UC. The study successfully met its primary endpoint of clinical remission according to the Modified Mayo Score (MMS) at week 12, as well as key secondary endpoints. Consistent with previously reported Phase 2 studies, no safety concerns were identified.
“These positive Phase 3 induction results for tulisokibart are the first for an anti-TL1A biologic. They represent an important step forward for patients with moderately to severely active ulcerative colitis who – despite available treatments – continue to experience symptoms, and do not achieve clinical remission,” said Dr. Eliav Barr, senior vice president, head of global clinical development and chief medical officer, Merck Research Laboratories. “These results reinforce the potential of this novel approach designed to help address immuno-fibrosis, a key driver of chronic immune dysregulation and disease progression in ulcerative colitis.”
Results from the ATLAS-UC Study 2 will be presented with the results from the ongoing induction and maintenance study (Study 1) at an upcoming scientific congress and will be shared with regulatory authorities.
Tulisokibart has the broadest development program in the novel anti-TL1A class and is currently being evaluated in seven disease indications. Phase 3 studies include ATLAS-UC (NCT06052059) in UC and ARES-CD (NCT06430801) in Crohn’s disease (CD). Phase 2 studies are evaluating tulisokibart in systemic sclerosis-associated interstitial lung disease (SSc-ILD) (NCT05270668), rheumatoid arthritis (RA) (NCT07176390), psoriatic arthritis (PsA) (NCT07486960), radiographic axial spondyloarthritis (r-axSpA) (NCT07133633) and hidradenitis suppurativa (HS) (NCT06956235). For an overview of Merck’s clinical development program in immunology, please click here.
About ATLAS-UC
ATLAS-UC (NCT06052059) is a Phase 3, randomized, double-blind, placebo-controlled program designed to evaluate the efficacy and safety of tulisokibart in adults with moderately to severely active ulcerative colitis (UC). The program consists of two independent studies: Study 1, which includes both induction and maintenance treatment, and Study 2, which includes only induction treatment.
Study 2 is investigating whether at least one tulisokibart dose level is superior to placebo in the proportion of participants achieving clinical remission, according to the MMS at week 12. Participants were randomized to either receive a high dose IV of tulisokibart, a low dose IV of tulisokibart or an IV placebo. Key secondary endpoints at week 12 include percentage of patients who experienced endoscopic improvement, percentage of patients who achieved clinical response per MMS and percentage of patients who demonstrated histologic-endoscopic mucosal improvement.
About Ulcerative Colitis
Ulcerative colitis (UC) is one of the most common types of IBD and is a chronic progressive immuno-fibrotic disease that affects the large intestine and rectum. Recent evidence suggests that UC involves not only the mucosa but also deeper transmural changes with fibrosis in the colorectal wall. Millions of people worldwide live with UC, and symptoms can be unpredictable and may significantly impact quality of life. UC often follows a relapsing and remitting course, with symptoms that may include diarrhea, rectal bleeding, abdominal pain, bowel urgency and weight loss. Many patients with UC do not achieve adequate disease control despite the availability of currently approved treatments.
About Tulisokibart
Tulisokibart is an investigational humanized monoclonal antibody directed to a novel target, TL1A, that is associated with both intestinal inflammation and fibrosis (immuno-fibrosis). Tulisokibart is thought to bind both soluble and membrane-bound TL1A. Merck is developing tulisokibart for the treatment of immune-mediated inflammatory diseases, including UC, CD, SSc-ILD, RA, PsA, r-axSpA and HS.
About Immuno-fibrosis
Immuno-fibrosis is the process by which inflammation and fibroblast activation drive disease activity and progression in many autoimmune conditions, including UC. Immuno-fibrotic diseases are chronic progressive conditions marked by immune dysregulation, inflammation and fibroblast activation. The impact of immuno-fibrosis may vary by disease, stage and patient. The complexity of immuno-fibrosis underscores the need for treatment options that address both inflammation and fibrosis. Merck is advancing research to deepen the understanding of immuno-fibrosis and help translate the science into new approaches.
Merck’s Commitment to Immunology
Advances in our understanding of human biology have led to the emergence of innovative medicines and new modalities that aim to change approaches to the treatment of immune-mediated inflammatory diseases. Merck scientists are leveraging deep expertise in immunology to discover and develop therapies to help people living with these conditions. Our research is focused on investigating novel targets such as TL1A and CD30L, as well as newer modalities like T-cell engagers, and exploring their potential across a range of immune-mediated inflammatory diseases.
About Merck
At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter), Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA
This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
On June 17, 2026, we present a DCF analysis for Electronic Arts Inc EA , a company that has shown a price performance of +34.9% over the past year, despite a year-to-date decline of -0.5%. The current price of EA stands at $203.02.
DCF Earnings-based intrinsic value indicates a significant overvaluation with a margin of safety of -405.4%. DCF FCF-based intrinsic value suggests a modest overvaluation with a margin of safety of -72.7%. GF Score™ of 90/100 indicates a high reliability of the DCF inputs. What Is EA Worth? DCF Earnings-Based Model The DCF earnings-based model for Electronic Arts Inc EA utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage accounts for the growth phase over the next ten years, while the second stage considers the terminal phase for the subsequent ten years.
Parameter Value Current EPS (TTM, excl. non-recurring) $3.48 10-Year Growth Rate 2.3% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, the EPS is expected to grow at a rate of 2.3% per year for ten years, discounted at a rate of 11%. The calculated value for this growth stage is $22.84 per share. In the second stage, after year ten, the growth rate slows to a terminal growth rate of 4% for another ten years, also discounted at 11%, yielding a terminal stage value of $10.94 per share.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 2.3%, discounted at 11% $22.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $10.94 Intrinsic Value Growth + Terminal $33.78 With the current price at $203.02, the intrinsic value calculated at $40.17 indicates that EA is significantly overvalued, with a margin of safety of -405.4%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further analysis, you can visit the EA DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for Electronic Arts Inc is calculated at $117.59. When comparing this with the earnings-based intrinsic value of $33.78, the two models suggest a modest overvaluation, with a margin of safety of -72.7%. This divergence highlights the importance of considering multiple valuation approaches when assessing a company's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Electronic Arts Inc is calculated at $159.55, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that EA is overvalued, reinforcing the need for caution among investors. For more details, visit the GF Value™ page.
What Does EA's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 90/100 Financial Strength 8/10 Profitability 9/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The predictability rank for EA is 2/5 stars, indicating that higher predictability means the DCF model is more reliable for this stock. For more insights, visit the EA stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as EA, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In conclusion, the DCF earnings model indicates a significant overvaluation, while the FCF model suggests a modest overvaluation. The GF Value™ also supports this perspective, indicating that EA is overvalued. Overall, investors should exercise caution when considering EA as a potential investment. For the full DCF analysis, visit the EA DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is EA's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Chevron podepsal s Microsoftem 20letou smlouvu o dodávkách elektřiny pro datacentrum v Texasu. Projekt má dodat 2,7 GW a první elektřina má přijít v roce 2028.
CNBC’s Brian Sullivan walked viewers through a landmark energy agreement that paints the picture for how much electricity the AI buildout actually needs. Chevron has signed a 20-year power purchase agreement with Microsoft to supply natural-gas-fired electricity to a Microsoft data center in far west Texas, about an hour southwest of Odessa. According to Sullivan, the project will deliver 2.7 gigawatts of capacity, roughly the equivalent of two million homes’ worth of power, and represents “one of the first we’ve seen of its kind, certainly of its size, by Chevron.”
Four publicly traded names sit at the center of the project: Chevron (NYSE:CVX | CVX Price Prediction), Microsoft (NASDAQ:MSFT), GE Vernova (NYSE:GEV), and Caterpillar (NYSE:CAT). Sullivan noted that Caterpillar and GE Vernova supply the turbines that convert natural gas into electricity for the facility, while Chevron supplies the molecules from its Permian Basin position.
What the Deal Looks Like in the Filings In its Q1 2026 8-K, Chevron disclosed an “exclusivity agreement with Microsoft” and Engine No. 1 for a power generation project in West Texas. The branded version, Project Kilby, will be operated through Chevron’s Energy Forge One LLC in partnership with Joulent, targeting a Final Investment Decision by the end of 2026 and delivering first power in 2028. According to Chevron’s press release, the project’s local impact figures include over $10 billion in expected tax revenue and almost 2,000 jobs.
For Chevron, this is a meaningful new growth wedge on top of an already-strong operating base. CEO Mike Wirth said, “2025 was a year of significant achievement. We successfully integrated Hess, started up major projects, delivered record production, and reorganized our business.” The company posted record full-year 2025 production of 3,723 MBOED, $33.9 billion in operating cash flow, and a 39th consecutive annual dividend increase. Shares closed at $173.63 on June 18, up 22.08% over the past year.
Why Microsoft Is Locking Up Power for Two Decades The scale of Microsoft’s AI infrastructure spend explains the urgency. Satya Nadella told investors that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Capital expenditures hit $30.88 billion in fiscal Q3 2026, up 84.39% year over year, with commercial remaining performance obligations of $627 billion. Shares trade at $379.40, down 21.2% year-to-date, as investors weigh capex intensity against future AI returns.
Other Picks-and-Shovels Beneficiaries GE Vernova and Caterpillar are the most direct beneficiaries of agreements like this. On Q1 2026 results, GE Vernova CEO Scott Strazik said, “Our Q1 Electrification orders to data centers were more than full-year 2025 results,” with total Q1 orders of $18.3 billion and gas power gigawatts under contract growing sequentially from 83 to 100. Shares climbed 22.44% in the past week to $1,109.73, and 127% over one year.
Caterpillar CEO Joe Creed announced on the same earnings cycle that “Power generation grew 48%, driven by strong demand for large gensets and turbines used in data center applications with an increasing mix towards prime power,” and disclosed a new 2.1 gigawatt prime power agreement, the sixth of at least one gigawatt. Caterpillar stock sits at $985.82, up 176.97% year over year.
The Natural Gas Backdrop and What to Watch Brian Sullivan framed the macro pressure bluntly: “The demand for natural gas from the United States, unfortunately and kind of sadly, will only go up.” He connected that to a major natural gas facility in Qatar that was damaged in March, with an attempted restart reportedly exploding on the day of his report, reinforcing the value of domestic supply. Henry Hub spot prices are near $3.06/MMBtu as of mid-June 2026, elevated relative to the 2024 baseline, following a brief January 2026 spike to $30.72/MMBtu.
Traditional oil and gas companies are increasingly becoming infrastructure providers for AI data centers, while equipment suppliers benefit from years of contracted demand. Investors should watch for a final investment decision by year-end, potential opposition from West Texas communities over water and land use, and whether other energy producers follow Chevron’s lead by signing long-term power agreements tied to the growing AI investment cycle.
Josh Brown doporučuje držet Interactive Brokers, Caterpillar a Delta Air Lines do konce roku 2026, protože všechny tři dál výrazně překonávají trh. U IBKR, CAT i DAL ho podporují silné výsledky a růst podnikání.
Ritholtz Wealth Management’s top executive, Josh Brown, is recommending investors stick with three outperformers through the end of this year (2026).
His top picks – Interactive Brokers, Caterpillar, and Delta Air Lines – have notably outperformed the broader market in recent months, which Brown believes justifies owning these names for the long term.
According to him, positions that keep working need no new reason to stay in your portfolio.
IBKR shares have been on Brown’s list of “Best Stocks in the Market” ever since they broke out of a cup-and-handle pattern in mid-2025.
In the trailing 12 months, the global electronic brokerage firm has rallied a remarkable 80%.
Brown attributed part of this explosive move to a float that’s small relative to founder Thomas Peterffy’s stake – limiting supply as demand persists.
Crucially, Interactive Brokers’ Q1 results back up the chart: client accounts grew 31% year over year to 4.75 million, client equity rose 38%, and margin loans climbed by some 40% to $90 billion.
In the first quarter, the company’s commissions hit a record $613 million – with stock, futures, and options volume all posting double-digit annual gains.
A 0.36% dividend yield makes IBKR even more attractive to own in 2026.
Caterpillar stock joined Brown’s list in April primarily because of its Power and Energy segment’s exposure to the AI infrastructure buildout – a thesis that has since strengthened.
In Q1, the company’s power generation sales grew a whopping 48% year-over-year – pushing the order backlog up 79% to record levels.
This even prompted management to raise its 2026 revenue guidance and more than triple its long-term power generation target through the end of this decade.
Despite a 270 bps tariff hit, CAT’s adjusted earnings per share (EPS) came in up 30% in the latest reported quarter.
Note that a gas engine running continuously for data centers generates about 40x the lifetime services revenue of a standby diesel unit.
Caterpillar remains attractive also because its board lifted the quarterly dividend recently to $1.63, extending a 32-year streak.
At writing, the firm’s share price is up nearly 45% versus early April.
Josh Brown first shared his constructive view on Delta Air Lines stock in December 2025, and it’s gained more than 20% since then.
The rebound has been led by premium and corporate demand: premium revenue grew 14% in Q1, loyalty sales came in up 13%, while corporate bookings hit a quarterly record.
The main cabin posted positive unit revenue growth, its first since late 2024, with domestic revenue and international revenue gaining 6% and 5%, respectively.
A record $14.2 billion in Q1 sales saw free cash flow hit $1.2 billion, with the outlook for the current quarter pointing to low-teens revenue growth.
Much like the other names on his list, DAL shares also currently pay a dividend yield of 1%.
AI boom žene poptávku po elektřině a z Caterpillaru, GE Vernova i Bloom Energy dělá jedny z největších letošních vítězů. Caterpillar i GE Vernova hlásí rekordní backlogy, Bloom prudce zvedl výhled tržeb i zisku.
The artificial intelligence boom has created enormous wealth for chipmakers and cloud computing giants.
Yet some of the stock market's biggest winners this year have been companies selling products that look more at home in industrial equipment catalogues than in Silicon Valley.
Shares of Caterpillar, GE Vernova, and Bloom Energy have posted returns rivalling many technology leaders in 2026, as investors increasingly focus on one of the biggest constraints facing artificial intelligence development.
The rapid construction of AI data centers has created unprecedented demand for reliable, round-the-clock power at a time when electricity grids around the world are struggling to keep pace.
Investors increasingly see the AI infrastructure buildout as part of a broader industrial transformation.
"If we go back five years or so, the opportunity was we're building more roads, we're building more bridges, and infrastructure was stage one," Chris Semenuk, an investment partner at Tema ETFs, said on an episode of the "Other People's Money" podcast last week.
With that infrastructure now built, the focus is broadening out, he noted.
Semenuk pointed to "unprecedented" backlogs at companies like Caterpillar and GE Vernova as evidence of the "reindustrialization" theme.
Caterpillar, best known for its yellow construction equipment, crossed a major milestone on Monday as its shares traded above $1,000, making it one of only two stocks in the S&P 500 with a four-digit share price.
The stock has gained more than 70% this year.
The company reported first-quarter revenue of $17.4 billion, up 22% from a year earlier, while adjusted earnings per share of $5.54 comfortably topped Wall Street expectations of $4.64.
The surprise driver of that growth was not construction activity but demand for power equipment.
Caterpillar's Power & Energy division, now the company's largest and fastest-growing business, generated revenue of $7.03 billion during the quarter, rising 22% year-on-year.
Within that segment, power generation sales jumped 41% to $2.82 billion, largely driven by data center projects.
The company's total backlog reached a record $63 billion, up 79% from a year earlier, primarily due to AI-related infrastructure spending.
Caterpillar's power and energy segment "is becoming increasingly dominant as demand for its large reciprocating engines and turbines swells with data-center/AI capital spending," Gimme Credit analyst Carol Levenson wrote in a recent note to clients.
The division now contributes roughly 40% of Caterpillar's revenue, matching the contribution from its traditional construction business.
Semenuk believes the opportunity is still in its early stages and said Caterpillar could be generating at least $10 in quarterly earnings per share by 2029, nearly double its latest quarterly earnings.
Among industrial companies, GE Vernova is perhaps the purest play on AI-driven electricity demand.
Spun out of General Electric in April 2024, the company manufactures gas turbines, grid equipment, and wind turbines.
Its shares have risen 66% this year.
GE Vernova posted better-than-expected earnings in April and raised its full-year outlook, sending the stock sharply higher.
The company expects its backlog for power generation and electrification equipment and services to reach $200 billion by the end of 2027, roughly one year ahead of its previous target.
Demand is being fueled by the construction of AI data centers, which has triggered an electricity investment boom not seen since the post-World War II period.
In the first quarter alone, GE Vernova booked $2.4 billion in electrification equipment orders tied specifically to data centers, surpassing the total booked during all of 2025.
Wall Street expects the company to generate earnings per share of about $24 in 2027, compared with estimates near $18 only a year ago.
After the company's latest earnings, Jefferies analyst Julien Dumoulin-Smith raised his price target on the stock to $1,350 from $965 while maintaining a Buy rating, arguing that strong business conditions should persist through the end of the decade.
Baird analyst Ben Kallo was even more optimistic, increasing his target price to $1,400 from $1,008 and retaining an Outperform rating.
The most dramatic gains have come from Bloom Energy.
Shares of the fuel-cell maker have surged roughly 250% this year as hyperscale data center operators seek alternatives to constrained power grids.
Bloom manufactures solid oxide fuel cells capable of generating electricity directly at data center campuses without relying on utility infrastructure.
The company's appeal lies not only in the amount of electricity AI facilities need but also in how quickly they can be deployed.
Grid connections for large data centers can take years to secure, while Bloom's systems can be installed in months.
Bloom recently raised its 2026 adjusted earnings forecast to between $1.85 and $2.25 per share, up from a previous range of $1.33 to $1.48.
It also lifted its revenue guidance to between $3.4 billion and $3.8 billion, implying approximately 80% growth at the midpoint.
The company was named the sole power provider for Oracle's Project Jupiter AI campus in New Mexico, which is expected to draw as much as 2.45 gigawatts of electricity from Bloom's fuel cells.
Separately, Nebius Group signed a master agreement worth up to $2.6 billion.
Despite the rally, analysts remain cautious.
Bernstein analyst Sunaina Ocalan initiated coverage with a Market Perform rating and a $276 price target, implying a 25% downside from current levels.
Bernstein said Bloom's solid fuel technology is "increasingly relevant in a scenario where grid infrastructure can't keep up with expected load growth," but added that investors need more confidence in the company's path toward sustainable cash flow and expansion capacity.
For now, the AI boom is reshaping market leadership in unexpected ways, turning power equipment manufacturers into some of Wall Street's most sought-after stocks as electricity becomes one of artificial intelligence's most valuable resources.
Caterpillar zakončil 1. čtvrtletí 2026 s rekordním backlogem ve výši 63 mld. USD, což podpořilo zvýšení výhledu na nízký dvouciferný růst tržeb v roce 2026.
Key Takeaways CAT ended Q1 2026 with a record $63B backlog, up 22% sequentially and 79% year over year.CAT raised its 2026 outlook to low double-digit sales growth, supported by strong demand trends.CAT sees demand from infrastructure, mining, and data center-related energy projects supporting growth. Caterpillar Inc.’s (CAT - Free Report) first-quarter 2026 results showcased strong revenue and earnings growth, but one metric stood out as a particularly important signal for investors: the order backlog. Unlike quarterly sales figures, backlog provides insight into future demand and revenue visibility, offering a clearer view of business momentum over the coming years.
Caterpillar ended the first quarter of 2026 with a record backlog of $63 billion. It was approximately $11.5 billion, or 22% higher sequentially, and $35 billion, or 79% higher than last year. Backlog increased across all three primary operating segments, reflecting broad-based demand strength throughout Caterpillar’s portfolio. About $24.8 billion of this backlog is not expected to be fulfilled within the next 12 months, highlighting the long-duration nature of many customer projects and the company’s growing revenue visibility.
The robust backlog also supports management’s improved outlook for the year. Caterpillar now expects low double-digit sales and revenue growth for 2026, above its earlier view for growth near the upper end of its long-term target range of 5-7%.
In Construction Industries, demand in North America continues to benefit from elevated infrastructure spending supported by the Infrastructure Investment and Jobs Act (IIJA). Ongoing investments in critical infrastructure projects and data center construction are also contributing to healthy activity levels. Within Resource Industries, favorable commodity prices and replacement demand for aging mining fleet are expected to support equipment orders.
In the Power & Energy segment, growth will be driven by sales of both reciprocating engines and turbines and turbine-related services, driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI). CAT is seeing demand for prime power solutions trend higher as data center customers look for alternative power solutions to keep pace with their growth.
Although quarterly revenues may vary with delivery schedules, Caterpillar’s record backlog points to sustained customer demand and provides a strong foundation for future earnings and cash-flow generation.
Industry peers are also reporting improving demand trends. Terex Corporation (TEX - Free Report) ended the first quarter with a backlog of $7.1 billion and a book-to-bill at 109%. Backlog increased 0.4% year over year, as strong booking trends in Materials Processing, Aerials, and Terex Utilities were offset by a decline at Environmental Solution. Terex’s recently completed merger with REV Group added the Specialty Vehicles segment, which contributed $4.48 billion to total backlog. Supported by its healthy order book and favorable end-market conditions, Terex reaffirmed its 2026 net sales outlook of $7.5-$8.1 billion.
Astec Industries (ASTE - Free Report) ended the first quarter with a backlog of $549.2 million, reflecting a 36.4% increase year over year, pointing to improving demand visibility across the portfolio. Astec’s Materials Solutions backlog rose 87.5% to $236.6 million, while Infrastructure Solutions segment’s backlog increased 13.1% to $312.6 million.
Although considerably smaller than Caterpillar, both Terex and Astec reported expanding backlogs. This suggests customers in the industry continue to commit capital to construction and infrastructure projects despite economic uncertainty.
CAT’s Price Performance, Valuation & EstimatesCAT shares have gained 75.6% over the past six months compared with the industry’s 56.2% growth.
Image Source: Zacks Investment Research
Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 37.20X compared with the industry average of 33.71X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.3%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 24.3% growth, with revenues rising 10.3%.
Image Source: Zacks Investment Research
Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Společnost Newmont získala klíčová regulační povolení pro projekt Red Chris Block Cave v Britské Kolumbii. Tím se otevírá cesta k přechodu z povrchové těžby a k prodloužení životnosti dolu do poloviny 40. let.
DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, ASX: NEM, PNGX: NEM) (“Newmont”) welcomes the Province of British Columbia’s approval of key regulatory authorizations for the Red Chris Block Cave project. The approvals enable the transition of the Red Chris Mine from current open-pit operations to block caving, allowing an extension of mine life into the mid-2040s. They mark a significant milestone in stage-gating as Newmont advances toward a final investment decision (FID) later this year.
The Province’s approvals include an amended Environmental Assessment Certificate (EAC), achieved through a consent-based process with the Tahltan Nation, as well as an amended Mines Act permit. The Red Chris mineral endowment offers decades of further upside potential beyond this initially permitted phase.
“The Red Chris Block Cave project represents a compelling long-term opportunity and today’s approvals mark a significant milestone in stage-gating as Newmont progresses toward a final investment decision later this year,” said Natascha Viljoen, President and Chief Executive Officer. “With significant mineral endowment, availability of clean hydroelectric power, port access, supportive governments, and strong Indigenous economic leadership, northwest British Columbia is emerging as a world-class mining district. We are proud to have advanced this project through a consent-based framework with the Tahltan Nation, reflecting our shared commitment to responsible resource development.”
Newmont is completing a Definitive Feasibility Study and detailed cost estimate for the Red Chris Block Cave. The project is expected to generate over 1,800 construction jobs, sustain approximately 1,500 peak-season operating roles and increase Canada’s copper production by roughly 15 percent.
In northwest British Columbia, Newmont is the majority owner and operator of the Red Chris Mine with Imperial Metals, its 30 percent joint venture partner. Newmont is also the owner and operator of the Brucejack Mine, and a 50 percent owner of Galore Creek Mining Corporation.
About Newmont
Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925. To learn more about Newmont’s sustainability strategy and initiatives, go to www.newmont.com.
This news release may contain “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 intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements in this news release include, without limitation, expectations regarding mine life estimates, extension of mine life, upside potential, job creation and job opportunity estimates, production and productivity estimates and improvements, timing of investment decisions and other statements regarding future events or results. For a discussion of risks and other factors that might impact future looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on February 19, 2026, under the heading Risk Factors. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of this news release, except as may be required under applicable securities laws. Continued reliance on “forward-looking statements” is at investors’ own risk.
Akcie Carnival klesly téměř o 6 %, protože ziskový výhled na 3. čtvrtletí ve výši 1,35 USD na akcii zaostal za odhady 1,42 USD. To zastínilo silné výsledky za 2. čtvrtletí a rekordní tržby 6,7 miliardy USD.
Carnival Corp (NYSE:CCL) shares fell almost 6% on Tuesday after the cruise operator issued a third quarter profit outlook below Wall Street expectations, overshadowing stronger-than-expected second-quarter results and record revenue.
The company reported adjusted earnings of $0.41 per share for the quarter ended May 31, ahead of analysts' estimates of $0.33 per share.
Revenue rose to a record $6.7 billion, slightly above the consensus forecast of $6.68 billion.
Net income attributable to Carnival reached $537 million, while adjusted net income climbed more than 20% year over year to a record $569 million. Adjusted EBITDA also hit a record $1.6 billion.
Carnival said customer deposits reached an all-time high of $9 billion, up more than $450 million from the previous year's record, while bookings for the remainder of 2026 remain ahead of last year at historically high prices.
For the third quarter, Carnival expects adjusted earnings of $1.35 per share, below analysts' expectations of $1.42. The company projected full-year 2026 adjusted earnings of $2.22 per share, also below the consensus $2.23.
Carnival CEO Josh Weinstein said the company delivered its "twelfth consecutive quarter of record net yields" despite "extreme geopolitical headwinds and nearly 30% higher fuel costs."
The company said booking trends for Mediterranean itineraries were affected by the prolonged conflict in the Middle East, prompting it to prioritize pricing over occupancy. Carnival noted that it is 93% booked for 2026, with less inventory remaining for sale than at the same point last year.
Weinstein said recent booking trends indicate the company is beginning to see "a reversal of these headwinds," adding that demand for 2027 and beyond continues to run ahead of prior-year levels.
For 2026, Carnival expects net yields to increase about 3.2% from 2025 levels and adjusted cruise costs excluding fuel per available lower berth day to rise approximately 3.7%. The company said elevated logistics costs linked to disruptions from the Middle East conflict are incorporated into its outlook.
Carnival uvedl, že slabší výhled výnosů v druhé polovině roku souvisí s narušením v Evropě, ne s oslabením dlouhodobé poptávky. Ve 2Q překonal odhady díky rekordním zálohám, rekordním výnosům a kontrole nákladů.
Key Takeaways CCL says its softer back-half yield outlook reflects Europe disruption, not weaker long-term demand.Carnival beat Q2 estimates as record deposits, record yields and cost control offset geopolitical pressure.CCL is investing in destinations, fleet upgrades and buybacks while leverage improved to 3.1X. Carnival Corporation (CCL - Free Report) used its second-quarter 2026 earnings call to make a narrow but important point: the company’s softer back-half yield outlook reflects a temporary Europe disruption, not a break in its longer-term demand story.
Management paired that message with evidence of continued execution, including record yields, record customer deposits and tighter cost control that helped offset pressure tied to the Middle East conflict.
CCL Frames Europe as a Temporary HeadwindChief executive officer Josh Weinstein said second-quarter outperformance came despite extreme geopolitical volatility, weak consumer sentiment and sharply higher fuel prices. He argued the main disruption was concentrated in European deployments, especially the Mediterranean, where the prolonged Middle East conflict hurt booking trends and pressured the timing of demand.
Weinstein emphasized that Carnival entered the period with an occupancy advantage and used that flexibility to protect pricing rather than chase volume. That trade-off left the company still ahead of last year on booked position as it entered the third quarter, with 93% of 2026 inventory already sold and less inventory remaining than a year ago.
The quarter itself remained solid. Adjusted EPS came in at $0.41 versus the Zacks Consensus Estimate of $0.35, a 17.1% surprise, while revenues of $6.66 billion topped the consensus estimate of $6.64 billion by 0.3%. Adjusted net income reached a record $569 million, and net yields in constant currency rose 2.2% year over year.
Carnival Leans on Costs to Protect EarningsChief financial officer David Bernstein said Carnival beat its March guidance by $100 million, with cost control doing most of the work. Cruise costs excluding fuel per ALBD were essentially flat year over year, outperforming prior guidance by about 250 basis points.
Bernstein said some of that benefit reflected timing between quarters, but he also described broader changes that should stick. He pointed to multiple efficiency actions implemented across the organization that lowered the cost base and contributed a $0.06 per share improvement to full-year guidance.
That helped Carnival absorb a roughly 1 percentage point cut to yield growth versus prior guidance. Full-year adjusted EPS guidance now stands at $2.22. On a normalized basis, net yield growth is projected at about 2.25%, and cruise costs excluding fuel are expected to rise about 1.3%.
CCL Keeps Building Its Destination AdvantageWeinstein spent considerable time on destinations, treating them as a core earnings driver rather than a side strategy. He highlighted the pier extension at Celebration Key and the new pier at RelaxAway, Half Moon Cay as moves that increase throughput, flexibility and itinerary differentiation.
The company expects Celebration Key to host 3.5 million visitors next year, while Paradise Collection destinations are projected to welcome more than 9 million guest visits. Management argued that pairing Celebration Key with RelaxAway on the same itinerary creates a differentiated beach offering that competitors cannot easily match.
Carnival also pointed to Alaska and Western Caribbean assets as strategic advantages. Weinstein tied those destination investments to pricing power and stronger demand rather than simple capacity growth, reinforcing management’s view that execution on itineraries and owned infrastructure can support yields over time.
Carnival Balances Growth, Buybacks and DeleveragingManagement also used the call to show that stronger cash generation is widening Carnival’s strategic options. Bernstein said the company has already repurchased more than $450 million of stock under its $2.5 billion authorization and expects to return about $1.3 billion to shareholders this year when dividends are included.
At the same time, Carnival continues to invest in fleet renewal and modernization. The company ordered three new Princess ships for 2035, 2038 and 2039, while also expanding mid-life upgrade programs at AIDA and Holland America. Weinstein said those refurbishments are being underwritten to high-teen returns, with added cabins paying back in just a few years.
Leverage kept moving lower as well. Net debt to adjusted EBITDA improved to 3.1X at quarter-end from 3.4X at year-end 2025, giving management room to fund destination projects, buybacks and balance-sheet repair at the same time.
CCL Q&A Sharpened the Europe DebateAnalyst questions centered on how much of the outlook reset was truly tied to Europe and whether the weakness could spill into 2027. Weinstein was direct in saying the entire yield revision relative to March was tied to the Middle East conflict and its effect on European sailings, especially for fly-based North American customers.
He also said recent weeks showed improving trends, and management made clear that current guidance does not assume a return to second-quarter disruption levels. Bernstein added that third-quarter occupancy should be roughly flat year over year, reflecting a willingness to leave some cabins unsold rather than erode pricing.
In 2027, management stopped short of guidance but sounded constructive. Weinstein said bookings and pricing for 2027 are running ahead of last year, including a mid-teens increase in Europe bookings at higher prices, which he offered as proof that the current slowdown has not changed the longer-term demand backdrop.
Carnival Leaves the Call on OffenseThe clearest message from the call was that Carnival sees the second-half moderation as a temporary interruption, not a structural demand issue. Management’s tone stayed confident because pricing held up, costs improved, and bookings outside the immediate disruption zone remained firm.
Just as important, Carnival used the call to show it can keep investing through volatility. Destination expansion, fleet upgrades, buybacks and deleveraging were all presented as parallel priorities supported by a stronger operating base.
Zacks Signals on CCLCCL currently carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of F and VGM Score of B. Within the Zacks framework, a Hold-ranked stock can still be worth retaining, and the stronger Value and VGM grades indicate more favorable value and blended style characteristics than momentum at current levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Style Score is designed to complement, not override, the Zacks Rank. A Zacks Rank #3 calls for more balance than a top-ranked stock, even with an attractive Value or VGM Score, and the rank can change as analysts revise earnings estimates after the quarter.
Synopsys po silném čtvrtletí zůstává pod tlakem, ale 24/7 Wall St. vidí cílovou cenu 561,40 USD, tedy potenciál růstu 23,25 % z 455,51 USD. Tržby ve 2. čtvrtletí fiskálního roku 2026 vzrostly o 42 % na 2,276 mld. USD a management zvýšil výhled na fiskální rok 2026.
Synopsys (NASDAQ:SNPS | SNPS Price Prediction) is one of the most strategically positioned software franchises in the AI-era semiconductor stack, and the recent pullback has reset the setup for investors evaluating the name.
The 24/7 Wall St. price target for Synopsys is $561.40, implying 23.25% upside from $455.51. Our model classifies SNPS as a high-conviction setup, with 90% confidence in the target.
24/7 Wall St. Price Target Summary Metric Value Current Price $455.51 24/7 Wall St. Price Target $561.40 Upside 23.25% Recommendation BUY Confidence 90% A Strong Quarter Met With a Sleepy Stock SNPS is down 7.77% over the past month and 3.03% year to date, trading 14% below its 52-week high of $651.73 and well off the low of $376.18.
The cooldown followed a strong Q2 FY26 print on May 27, 2026: revenue of $2.276B, up 42% YoY, with non-GAAP EPS of $3.35 beating estimates by 5.96%. Design Automation operating margin expanded to 43.3% from 40.9% a year earlier. Management raised FY26 guidance to $9.625B to $9.705B in revenue and $14.72 to $14.80 in non-GAAP EPS.
The Case for $667 and Beyond Bulls have a clean thesis. CEO Sassine Ghazi said on the Q2 call that “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”
Synopsys sits at the choke point for every advanced-node design, and the $35 billion Ansys acquisition that closed July 17, 2025 extends that moat into multi-physics simulation.
Q1 FY26 revenue grew 65.4% YoY, and the backlog stood at $11.4B exiting FY25. Of 25 analysts, 17 rate the stock Buy or Strong Buy against just one Strong Sell. Our bull case scenario puts SNPS at $667.14 within 12 months, a 46.46% return, if Ansys synergies accelerate and the September 30 Investor Day reveals raised long-term targets.
The Risks Worth Watching The bear case starts with the balance sheet. SNPS carries roughly $10B in long-term debt and $403.6M in quarterly intangibles amortization, which crushed GAAP net income to $17.1M in Q2.
Bulls will counter that this is purely a non-cash artifact of purchase accounting and that non-GAAP EPS and free cash flow of $2B tell the real story. Design IP remains soft, with management divesting Processor IP Solutions, and export controls into China remain an overhang.
Year-over-year quarterly earnings growth of -0.96% trimmed our factor by 0.03. The bear scenario lands the stock at $494.55 over the next year, still 8.57% above today.
Synopsys Price Prediction 2026-2030 The 24/7 Wall St. price target of $561.40 reflects a high-confidence buy. The tipping factor is the disconnect between accelerating non-GAAP fundamentals and a stock that has gone nowhere YTD.
The bull case rests on AI-driven design complexity remaining a multi-year tailwind and Ansys synergies landing as guided. The bear case strengthens if the trailing P/E of 104 matters more than the forward P/E of 31, or if China export controls tighten further.
Looking further out, here is where our model projects SNPS could trade, assuming current growth and margin trajectories hold.
Year 24/7 Wall St. Price Target 2026 $561.40 2027 $666.63 2028 $710.01 2029 $805.26 2030 $849.44 These projections assume Synopsys keeps executing on Ansys integration and AI design demand stays robust. Significant upside or downside could come from China export policy, EDA pricing power, or the pace of advanced-node design starts.
Akcie Salesforce letos klesly asi o 40 % na nové 52týdenní minimum, přesto tržby vzrostly o 13 % na 11,1 miliardy USD. AI a datové produkty přinesly 3,4 miliardy USD ARR a Agentforce přesáhl 1 miliardu USD.
Few of the market's large-cap software names have fallen as hard this year as Salesforce (CRM +2.22%). The stock recently set a fresh 52-week low and is down about 40% year to date, leaving it among the worst performers in enterprise software. What makes the slide unusual is that the underlying business keeps setting records.
The company reported results for its fiscal first quarter of 2027 (the period ended April 30, 2026) in late May, and the numbers were strong. So why does the stock keep falling?
The answer has little to do with the latest quarter and almost everything to do with a single fear: that artificial intelligence (AI) agents will erode the per-seat subscriptions that software companies like Salesforce have long sold. If a handful of agents can do the work of many employees, the worry goes, customers will eventually need fewer paid seats. In addition, there's an overarching fear that AI will increasingly handle what software companies do today.
Image source: Getty Images.
What the latest quarter actually showed The fiscal first-quarter results suggest that fear may be overblown, at least for now. Salesforce's revenue rose 13% year over year to $11.1 billion, though about 4.4 percentage points of that growth came from its recent Informatica acquisition. Stripping that out, organic growth was closer to the high-single-digit pace the company has run at for a while.
More telling, however, was what happened beneath the top line. Salesforce's AI and data products generated $3.4 billion in annual recurring revenue (ARR), up about 200% from a year earlier, and its Agentforce agentic AI offering alone crossed $1 billion in ARR after more than tripling. And rather than shrinking, the seat count in the company's largest products grew.
"Our largest applications, sales and service, saw year-over-year seat growth with humans and agents both expanding on the platform," said Salesforce chief operating and finance officer Robin Washington in the company's fiscal first-quarter earnings call.
That dynamic, with customers paying for more seats rather than fewer even as they adopt automation, sits at the center of the bull case. Salesforce is also leaning hard into new ways to charge for AI, including usage-based pricing and a recent $3.6 billion deal to acquire Fin, an AI customer service platform.
The profit picture looks healthy, too. Salesforce's non-GAAP (adjusted) operating margin reached a record 34.8%, and the company generated $6.6 billion in free cash flow during the quarter. Salesforce also returned $27.5 billion to shareholders, the bulk of it through a $25 billion accelerated share repurchase that was the largest in its history. That buyback shrank the share count by about 10% from a year earlier.
Is the sell-off a buying opportunity? Not everything in the quarter, however, was reassuring. Management pointed to ongoing weakness in the company's commerce and Tableau businesses. Salesforce has also cut staff repeatedly over the past year as it reorganizes around AI. Of course, this can be viewed as both a negative and a positive.
Additionally, investors will need patience. Management is guiding for organic revenue growth to reaccelerate in the back half of the fiscal year -- a recovery investors will have to wait to see.
Today's Change
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The real problem for the stock recently may have been valuation. Only now is the stock starting to look reasonably priced in light of the risks of technological change that software companies face. After the sell-off, Salesforce trades at a forward price-to-earnings ratio of about 12, using the midpoint of management's full-year adjusted earnings outlook. For a profitable business still growing revenue at a double-digit rate and expanding its margins while buying back stock aggressively, that is a fairly attractive multiple.
So, is it finally time to buy? I'm staying cautious. The numbers increasingly suggest AI is acting as a catalyst for Salesforce rather than a threat. But the broader uncertainty over how AI will reshape software isn't going away soon, and that overhang could keep a lid on the valuation premium investors are willing to pay for software stocks for years, even ones executing as well as this one.
Overall, buying a small, undersized position here could make sense for investors comfortable with the AI disruption overhang that could plague the stock for years. From there, I'd only build the position into a meaningful stake if the stock falls significantly further. Approaching the stock this way gives investors the flexibility to profit if things go well, and to potentially keep buying a good business at an even better price.
Oracle Corp (NYSE:ORCL, XETRA:ORC) has reduced its workforce by about 21,000 employees over the past year, citing the deployment of artificial intelligence technologies across its operations, according to its annual filing.
The software and cloud company employed approximately 141,000 full-time workers as of May 31, 2026, compared with about 162,000 a year earlier, a decline of nearly 13%.
"The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," Oracle said in the filing.
Oracle reported $1.8 billion in restructuring costs during the fiscal year, including severance payments and other exit expenses, up from $374 million in the prior year.
The company noted that workforce reductions can be disruptive and may lead to lower productivity, shortages of skilled employees in some roles, loss of institutional knowledge, and weaker employee morale and retention.
Oracle had informed employees in March that it planned to eliminate thousands of positions as it faced investor scrutiny over increased borrowing to support its AI infrastructure expansion. In January, the company announced plans to raise $50 billion through debt and equity financing.
Capital expenditures rose 162% in the latest fiscal year to $55.7 billion, while free cash flow was negative $23.7 billion.
Shares of Oracle traded down almost 3% at Tuesday’s opening bell, down about 13% so far this year.
Oracle vykázal ve 4. čtvrtletí AI backlog ve výši 638 miliard USD a růst cloudové infrastruktury o 93 % na 5,79 miliardy USD. Firma zároveň potvrdila tržby ve výši 90 miliard USD pro FY2027 a zvýšila výhled non-GAAP EPS na 8,05 USD.
Oracle (NYSE:ORCL | ORCL Price Prediction) at $175 looks compelling on the data. The stock has been pulled into the broader software compression trade even as its Q4 report revealed a $638 billion AI backlog that locks in years of forward revenue.
Oracle sells database software, enterprise applications such as Fusion and NetSuite, and Oracle Cloud Infrastructure (OCI), which has emerged as a serious hyperscaler challenger by winning large-scale AI training and inferencing contracts. The stock has compressed from a 52-week high of $343.01, dragged down with peers as investors worry that AI agents will erode traditional software subscriptions and that Oracle’s capital intensity will outrun its earnings power.
The $638 Billion Reason This Pullback Looks Like a Gift Q4 was a watershed. Cloud Infrastructure revenue grew 93% year over year to $5.79 billion, total cloud reached 52% of sales, and Remaining Performance Obligations jumped 363% to $638 billion, with $75 billion backed by customer-supplied or prepaid GPUs that reduce Oracle’s capital burden.
Management confirmed FY2027 revenue at $90 billion and raised non-GAAP EPS guidance to $8.05, with Q1 cloud growth guided to 58% to 64%. Mizuho reiterated Outperform with a $320 price target, calling the FY27 guide conservative.
The Capex Trap Bears Are Pricing In FY26 free cash flow came in at negative $23.69 billion against $55.66 billion of capex, and management plans to raise roughly $40 billion more in debt and equity in FY27 on top of $218.7 billion in total liabilities.
Oracle disclosed a 21,000 employee reduction, about 13% of the workforce, with $1.84 billion in severance costs. Software license revenue fell 2% in Q4, feeding the bear thesis that the legacy book is eroding faster than cloud can offset, with concentration risk in a handful of mega AI contracts.
Why Patient Capital Could Still Wait Here The hold case rests on visibility. Cash flow stays deeply negative through the buildout, and dilution from the planned $40 billion raise is a real overhang. A patient investor could wait for FCF to inflect or for proof that Q1 cloud growth lands inside the 58% to 64% guide before committing fresh capital.
The cost of that patience is missing the re-rating that typically follows when an RPO of this scale starts converting at scale.
What the Stock Actually Shows Shares trade at $175.07 against a consensus 12-month target of $252.64, implying meaningful upside if analysts are right. The breakdown across 43 covering analysts currently sits at:
Strong Buy: 6 Buy: 30 Hold: 6 Sell: 1 Oracle trades at roughly 23x forward earnings with FY27 EPS growth guided near 18%. ORCL is down 13.82% over the past year and 9.63% year to date, while the S&P 500 is up 25.26% and 9.16% over the same periods.
The Setup: Asymmetric Risk/Reward at $175 With a Floor Near $160 At $175, the risk/reward skews favorable. The path to appreciation is mechanical. A $638 billion structural backlog insulates earnings from macro multiple re-rating, and Q1 results landing inside the 27% to 29% revenue guide should force analysts to mark up FY28 estimates as the RPO conversion curve becomes visible.
Risk/reward at this price is asymmetric. With a historical value floor near $160, downside is roughly single digits while the consensus target implies a move back toward $252. Multicloud AI Database grew 404% in Q4, and AWS regions are scaling from eight to 22 by Q4, real evidence the backlog is becoming revenue.
What invalidates the thesis: a slip in cloud growth below the guided range, an unexpectedly dilutive equity raise, or a major AI customer renegotiating commitments. Watch FCF trajectory and Q1 cloud growth quarter by quarter.
Owning Oracle at $175 effectively means owning a hyperscaler-grade backlog at a software multiple while the rest of the market is busy selling the input costs.
Digital Realty kupuje pozemek u Kansas City za zhruba 475 milionů USD a získá tím lokalitu pro hyperscale datacentra o výkonu až 2 GW. Současně zvýší podíl v Teraco na 77 % a plánuje akvizici Columbia Capital.
Secures Two-Gigawatt Development Site in Kansas City Metro, and Plans to Increase Teraco Ownership and to Acquire Columbia Capital June 22, 2026 07:00 ET | Source: Digital Realty Trust, L.P.
AUSTIN, Texas, June 22, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, today announced a series of transactions that together bolster the company’s three core pillars of growth: (i) expansion of its hyperscale data center development capacity through the acquisition of a new powered land site in the Kansas City metro, (ii) growth of its colocation and connectivity portfolio through the purchase of certain minority shareholder stakes in Teraco, and (iii) further scaling of its Strategic Private Capital platform through the acquisition of Columbia Capital a leading investment firm in the digital infrastructure space.
Expansion into Kansas City Market
Digital Realty has acquired approximately 1,440 acres of land at Astra Enterprise Park, located near Kansas City to support hyperscale data center development for approximately $475 million(1) in cash and common units in its operating partnership. The acquisition marks an entry into a Top 30 U.S. metro with fast-growing technology sector exposure, ample utility and telecommunications infrastructure, and strong connectivity fundamentals. According to datacenterHawk, the Kansas City metro is the 7th largest data center market in the U.S., when including capacity that is currently under construction and in planning.
To support development of the site, Digital Realty has entered into an Energy Service Agreement with the local utility to provide 600 megawatts of utility power by early 2028, rising to two gigawatts at full delivery.
Increase in Teraco Ownership
As part of the continued investment in its colocation and connectivity platform, Digital Realty is increasing its ownership interest in Teraco, Africa’s leading data center platform, to 77% through the acquisition of shares from certain minority shareholders. Digital Realty will purchase the 16% stake for approximately $650 million(1), principally via the issuance of 3.4 million shares of common stock.
Teraco represents a key component of Digital Realty’s global colocation and connectivity footprint, with a portfolio of highly connected, network-dense campuses serving a growing base of customers across the EMEA region.
Acquisition of Columbia Capital
Digital Realty plans to acquire Columbia Capital for approximately $485 million(1), principally through the issuance of 2.3 million shares of common stock, with a lockup that releases over a multi-year period and an earnout that is subject to certain performance hurdles. Founded in 1989, Columbia Capital is focused on the communications, technology and digital infrastructure space, with over $9 billion in fund commitments from hundreds of investors, including sovereign wealth funds, pension funds, insurance companies, endowments and other institutional investors.
The acquisition will accelerate Digital Realty’s Strategic Private Capital platform and provides increased expertise and visibility into adjacent digital infrastructure sectors. Columbia Capital’s experienced investment team and established portfolio complement Digital Realty’s global operating platform and will strengthen investment capabilities to take advantage of the expanding AI infrastructure ecosystem.
Columbia Capital and Digital Realty have collaborated on multiple digital infrastructure projects. Columbia is a long-time co-investor in Teraco whose involvement predates Digital Realty’s acquisition of a majority interest in August 2022. The two companies have also partnered through Vela Infrastructure, a subsea cable landing station developer.
Executive Commentary
“These transactions support the continued momentum of Digital Realty’s three core pillars of growth. The purchase of land in the Kansas City metro enhances our ability to serve hyperscale customers’ near term requirements, while our increased stake in Teraco strengthens our position in Africa’s leading data center platform and supports the continued growth of our global colocation and connectivity business,” said Andy Power, President and Chief Executive Officer of Digital Realty. “Our history of collaboration with Columbia Capital reflects a shared long-term perspective while providing additional flexibility to support the scaling of both our hyperscale development pipeline and our private capital platform.”
"Taken together, these transactions are expected to further enhance Digital Realty's growth profile, while maintaining our balance sheet discipline and positioning the company for the continued investment opportunity we see ahead," said Matt Mercier, Chief Financial Officer of Digital Realty. These investments will be principally funded through the issuance of 6.3 million shares of common stock (and operating partnership units) at a weighted average price of $197.54 per share (or unit).
The Teraco and Columbia Capital transactions are expected to close in the second half of 2026 and remain subject to customary closing conditions.
Additional Resources
De Soto data center projectProject Sediba: Teraco's renewable energy milestoneThe PERE Podcast: Andy Power discusses the strategic importance of Private Capital to Digital Realty About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives customers access to the connected data communities that matter to them through a global footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more, visit digitalrealty.com or follow us on LinkedIn and X.
Safe Harbor Statement
This press release contains forward-looking statements based on current expectations, forecasts, and assumptions that involve risks and uncertainties which may cause actual results to differ materially from those described. These include statements related to the Fund, customer demand, expected benefits, use of proceeds, and the company’s strategy. For a description of these risks and uncertainties, please refer to the company’s filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements.
1 Based on closing stock price of $188.15/sh as of June 18, 2026.
Take-Two otevře 25. června předobjednávky GTA VI; Jefferies to vidí jako klíčový katalyzátor pro akcie před listopadovým vydáním. Akcie po zprávě vyskočily o více než 5 %.
Take-Two Interactive Software Inc (NASDAQ:TTWO) is set to open pre-orders for Grand Theft Auto VI on June 25, and Jefferies says the event is shaping up to be a meaningful catalyst for the stock ahead of the game's November 19 release.
The bank expects a new trailer to drop alongside the pre-order launch, but the bigger focus for investors will be pricing. Jefferies sees the base edition landing at either $70 or $80, with $100 considered unlikely.
The firm's base case is $80, given the pull of the GTA franchise, though it notes a $70 price would make premium edition upsells an easier sell.
Those premium editions may be the most telling part of the announcement. Their contents should give the first real clue about how Take-Two plans to monetize GTA VI Online, whether that means bundled subscription months, premium currency, a season pass, or some combination. Jefferies views this as arguably more important than the price tags themselves.
What investors probably won't get on June 25 is a launch date for GTA Online. The bank's base case has the online mode arriving in December, roughly a month after the main game, giving players time with the story before the online ecosystem opens up. Full details on in-game purchases are also expected to come later, closer to release.
PC players will need to be patient too. The November launch is console-only, with Jefferies penciling in April 2027 at the earliest for a PC release.
On the stock, Jefferies pointed to the Red Dead Redemption 2 launch cycle as a potential parallel, when Take-Two shares climbed around 20% from pre-orders to their peak before pulling back into launch. The firm sees the upcoming pre-order window and summer marketing push as the next major catalyst to watch.
Investors cheered the update, sending Take-Two’s shares over 5% higher on Thursday afternoon.
Bank of America zvýšila cílovou cenu Take-Two na 368 USD a čeká silnější monetizaci nové verze GTA Online. Pro fiskální rok 2028 zvedla odhad bookings na 2,2 miliardy USD.
Take-Two Interactive Software Inc (NASDAQ:TTWO) shares could see a stronger long-term monetization profile from the next iteration of Grand Theft Auto Online (GTAO), according to Bank of America, which raised its price objective on the stock and upgraded its forward bookings assumptions for the franchise.
Bank of America reiterated its 'Buy' rating on Take-Two and raised its price objective to $368, based on a 26x multiple applied to its FY28 earnings estimate. The firm characterized this as a peak valuation scenario, with potential for further upward revisions if GTAO monetization exceeds expectations.
The firm increased its financial year 2028 GTAO bookings forecast by roughly $900 million to $2.2 billion, lifting its assumed annual revenue per monthly active user (MAU) to $60 from $35 previously.
The revision reflects expectations that the next version of GTAO could monetize at nearly twice the rate of its predecessor, narrowing the gap with leading live-service titles such as Fortnite.
The analysts argued that GTAO currently under-monetizes relative to comparable franchises, and expect the next installment to close that disparity as its “pay-to-progress” structure encourages higher average player spending than Fortnite’s cosmetics-driven model. Bank of America also noted that Grand Theft Auto VI’s player base is likely to carry higher lifetime value than the broader free-to-play audience seen in other major live-service ecosystems.
At the high end of the estimate range, the firm pointed to monetization levels above $100 per MAU in heavily “pay-to-win” sports titles, suggesting additional upside if engagement trends skew more aggressively toward in-game spending.
Bank of America left its financial year 2027 estimates unchanged, citing a likely late-year ramp for GTAO’s contribution. It now forecasts financial year 2028 net bookings of $10.7 billion and earnings per share of $14.23.
Beyond revenue assumptions, the report highlighted structural improvements at Rockstar that could support stronger monetization. These include a more robust content pipeline, enhanced anti-cheat systems, and a substantially larger live-service team, expanded to more than 100 staff compared with roughly 10 at GTAO’s 2013 launch. The analysts believes that these changes address early limitations that previously constrained long-term engagement and spending.
The bank’s analysts also suggested that GTAO’s current iteration, which generates an estimated $400 million in annual bookings versus a peak of around $700 million in 2021, underscores the room for growth in a more modernized live-service framework.
Bank of America estimates that the next GTAO could support more than 40 million sustainable MAUs, potentially placing it among the largest live-service franchises globally, behind only Fortnite.
Take-Two shares traded up 2% at $244 on Tuesday afternoon.
Take-Two stanovila cenu „Grand Theft Auto VI“ na 79,99 USD a potvrdila vydání na 19. listopadu. Základní verze tak překoná dosavadní strop 69,99 USD u velkých her.
Grand Theft Auto The Trilogy by Take-Two Interactive Software Inc is seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights, opens new tab
June 24 (Reuters) - Take-Two Interactive Software (TTWO.O), opens new tab on Wednesday priced "Grand Theft Auto VI" at $79.99 and stuck to its previously announced November 19 release date, bringing the industry's most anticipated title closer to launch after multiple delays.
The price makes "GTA VI" one of the most expensive base versions of a top-tier game, pushing it above the $69.99 ceiling that blockbusters such as Sony's "Ghost of Yōtei" and Nintendo's "Legend of Zelda: Tears of the Kingdom" have held for years.
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The "Ultimate Edition" of the game will cost $99.99 and add exclusive vehicles, weapons and apparel woven into the story of Jason and Lucia, the protagonists of the game.
Shares of Take-Two rose nearly 3% in premarket trading.
Joost van Dreunen, games professor at NYU's Stern School of Business, said the pricing was unlikely to dent sales, calling "$80 a rounding error against the anticipation."
He said the price could set a new benchmark for blockbuster titles with few substitutes but was unlikely to apply to mid-tier publishers. "GTA VI doesn't lift all prices but widens the gap between the haves and the have-nots," he added.
Fans have been waiting for "GTA VI" for over a decade, and analysts expect it to be an instant hit with billions of dollars in sales within days due to the franchise's popularity and the strong track record of its creator, Rockstar Games.
The previous entry in the series, "Grand Theft Auto V", was released in 2013 and has sold around 230 million copies, making it one of the best-selling video games ever.
That makes "GTA VI" crucial not just for Take-Two but for the wider video-game market, as the franchise typically drives console sales and PC upgrades.
Take-Two said earlier this month "GTA VI" pre-orders will start on June 25. All pre-orders before November 20 include the Vintage Vice City Pack of retro in-game items, with digital buyers also getting a free month of GTA+, a membership that unlocks in-game perks and access to "GTA V" and other titles.
First unveiled in late 2023 with a trailer that now has nearly 300 million views on YouTube, the game features a "Bonnie and Clyde"-like duo blitzing their way through a fictional version of Miami, Florida, called "Vice City".
Reporting by Aditya Soni in Bengaluru; Editing by Leroy Leo and Maju Samuel
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Snowflake čelí rostoucí konkurenci Databricks, ale Jefferies vidí prostor pro oba díky silné poptávce po datech a infrastruktuře pro AI. Databricks má Snowflake překonat velikostí, zatímco Snowflake si drží vyšší marži volného cash flow kolem 23 %. Databricks má podle Jefferies v první polovině fiskálního roku 2027 překonat roční tempo tržeb 6,9 miliardy dolarů, zatímco Snowflake odhaduje na zhruba 5,5 miliardy dolarů s růstem o 32 % meziročně.
Snowflake Inc (NYSE:SNOW) remains well-positioned despite intensifying competition from Databricks, with Jefferies analysts writing that both companies are benefiting from growing enterprise demand for data and artificial intelligence infrastructure and have room to expand.
Jefferies noted that Databricks' annualized revenue run rate is on track to exceed $6.9 billion in the first half of fiscal 2027, representing about 65% year-over-year growth in its core business and roughly 80% growth including large language model monetization.
By comparison, the firm estimates Snowflake's revenue run rate at approximately $5.5 billion, growing 32% year over year.
The analysts wrote that Databricks is poised to surpass Snowflake in scale for the first time, though Snowflake maintains stronger profitability, generating free cash flow margins of around 23% while Databricks remains near breakeven.
Jefferies highlighted that Snowflake has accelerated growth over the past two quarters despite rising competition, delivering roughly four percentage points of product revenue acceleration in the first quarter of fiscal 2027 to 34% year-over-year growth.
The firm wrote that Snowflake's AI offerings, including CoCo and Snowflake CoWork, could drive additional monetization opportunities and increase consumption of its core data platform.
Databricks has also expanded its data warehousing business, with its SQL Warehouse product surpassing a $1.5 billion annualized revenue run rate. However, Jefferies wrote that Snowflake still has a materially larger data warehousing business and has significantly narrowed the technical gap over the past year, particularly in AI capabilities.
The analysts added that Databricks' Genie platform could help broaden AI adoption among business users by enabling employees to access and interact with enterprise data through integrations with applications such as Microsoft Teams, Slack and Google Drive.
Shares of Snowflake closed at about $235 on Wednesday, having gained about 7% so far this year.
UPS investuje 48 milionů USD do 27 teplotně řízených zařízení napříč Amerikou, Evropou a Asií. Firma tím posiluje logistiku pro rychle rostoucí zdravotnické zásilky.
United Parcel Service is investing $48 million in 27 temperature‑controlled facilities as the industry sees a boom in healthcare logistics, CNBC has learned exclusively.
The facilities, located across the Americas, Europe and Asia, are optimized for moving around shipments that need to be kept at certain temperatures. The company said the investment will help it stay ahead of a boom in medicines and pharmaceuticals — like some GLP-1s — that have to be kept at certain temperatures by improving speed and end-to-end chain of custody.
"Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world," said Kate Gutmann, UPS' president of international, healthcare and supply chain solutions. "This effort – and all of our work in healthcare logistics – extends from a deep understanding that we're doing more than moving packages."
The demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion, according to Growth Market Reports. Many new medicines are required to be stored at specific temperatures to maintain efficacy, UPS said, making healthcare logistics more crucial than before.
According to the World Health Organization, up to 50% of global vaccines are wasted every year, with a significant portion of that coming from cold-chain storage issues.
"These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes," UPS Healthcare President John Bolla said in a statement.
UPS' move comes as the industry overall has seen growing investments in the space, especially with the meteoric rise of GLP-1 drugs. Medicines like Novo Nordisk's Wegovy and Ozempic require strict refrigeration and temperature control during transit. A November KFF poll found that 1 in 8 Americans are taking GLP-1s.
UPS CEO Carol Tomé said on the company's first-quarter earnings call in April that healthcare remains one of the company's top priorities and biggest areas of growth.
"Our global healthcare portfolio has gained market share every year since 2021," she said on the call. "And in the first quarter of this year, we generated our first $3 billion healthcare revenue quarter ever, with all three of our segments delivering year-over-year revenue growth."
Tomé added that UPS is committed to continuing to "lean into that space in a meaningful way."
Costco ve 3. čtvrtletí FY26 zvýšila zisk na akcii (EPS) na 4,93 USD při tržbách 70,53 mld. USD, což překonalo odhady. Digitální srovnatelné tržby vzrostly o 21,5 % a návštěvnost e-commerce o 37 %.
Costco Wholesale (NASDAQ: COST | COST Price Prediction) trades near $985, a price that demands flawless execution into a tightening macro even as the best-in-class compounder narrative remains intact. Kevin Warsh’s first meeting as Fed Chair lands with sticky inflation keeping long yields elevated, and high-multiple stocks have already started bleeding multiple compression into premium consumer staples.
Costco runs a membership-warehouse model that turns fee income into low prices, with Kirkland Signature and Costco Logistics extending the moat. The flywheel produced $275.24B in FY25 revenue and $18.21 in EPS, with $13.34B in operating cash flow.
After climbing 14.74% YTD to $986.68, COST has given back 5.94% over the past month as the market reprices the multiple a slow-and-steady retailer deserves when 10-year yields refuse to budge.
The Flywheel Keeps Spinning Faster Than the Share Price Q3 FY26 delivered EPS of $4.93 on revenue of $70.53B, an 11.6% YoY jump beating consensus, with digitally-enabled comparable sales up 21.5% and e-commerce traffic up 37%. Membership fee income grew 10.7% to $1.37B, the worldwide renewal rate held at 89.7%, and executive members now drive 75.0% of net sales. Net income jumped 15.2%.
Management plans to reach roughly 940 warehouses by FY26 year-end. Quarterly earnings growth running at 45.5% YoY makes a forward P/E of 44 look less absurd in context. Analyst sentiment broadly agrees, with 22 of 37 analysts rating it Buy or Strong Buy.
A 49 P/E Meets a Fed That Cannot Cut Fast Enough Costco trades at a trailing P/E of 49, a forward P/E of 44, and 13 times book, with a PEG of 4.8. For a 3% net margin retailer, that pricing assumes years of uninterrupted execution. Vanguard’s 2026 outlook warns core inflation likely stays above 2.5%, leaving the Fed limited scope to cut below a 3.5% neutral rate. Sticky inflation plus elevated long yields compresses premium multiples.
COST trades below its 50-day moving average of $1,004.25 and only modestly above the 200-day at $957.56, with a 52-week high of $1,096.50 already in the rearview.
Great Business, Demanding Entry Price Nothing in the fundamentals justifies selling a compounder with 82.1M paid memberships and double-digit fee growth. The multiple does not justify chasing the stock into Warsh’s first meeting. A pullback into the low-$900s, or a broader market reset toward $830, would offer real margin of safety. Watch comp sales, membership growth (now running near 4.1%), and any dovish signal from the Fed.
Where the Numbers Leave Costco Today Costco currently trades at $986.68, up 14.74% YTD versus a 10.03% gain for the S&P 500, but down 5.94% over the past month. The consensus analyst target of $1,082.33 implies roughly 10% upside. Across 37 covering analysts:
Strong Buy: 3 Buy: 19 Hold: 13 Sell: 1 Strong Sell: 1 Valuation runs hot with EV/EBITDA at 29 and a 0.55% dividend yield, against a market cap of $434.4B.
At $985, Patience Has a Price Tag At $985, Costco sits in a tension zone. The business fires on every cylinder that matters, yet the entry price assumes the macro cooperates and the multiple holds, both of which look uncertain with Warsh inheriting a sticky inflation problem and the market already punishing high multiples.
The bull case strengthens if Costco pulls back toward $830 on broader multiple compression, or if comps reaccelerate above 10% adjusted while the Fed signals real cuts. The bear case requires a real crack in the 89.7% renewal rate or membership growth, which Q3 did not show. Until one of those breaks, the setup remains in stalemate.
The cost of patience is missing the drift to consensus. The cost of acting is paying 44 times forward earnings for a 3% margin retailer into a tightening cycle. That asymmetry explains why many investors are sitting on their hands at this price.
Costco ve 3. čtvrtletí fiskálního roku zvýšila srovnatelné tržby o 9,8 %, členské poplatky o 10,7 % a digitální prodeje o 21,5 %. Akcie přesto za měsíc klesly o 5,94 %.
Costco (NASDAQ:COST | COST Price Prediction) just posted its strongest comp sales quarter of the fiscal year and the market shrugged. Q3 FY26 comps came in at 9.8%, membership fees grew 10.7%, and digitally-enabled sales jumped 21.5%.
Yet shares have slipped 5.94% over the past month. That gap between operational momentum and price action is the kind of setup I pay attention to. Costco trades at $986.68. Can it reach $1,250 in 2027? Here is the path.
What’s Holding Costco Back Right Now The simple answer: valuation. Costco trades at roughly 49 times trailing earnings, and that multiple gets harder to defend when consumer confidence is cracking. University of Michigan sentiment dropped to 49.8 in April 2026, the lowest reading in the past year and approaching recessionary territory. Even a 0.87 beta does not protect a stock priced for perfection when the macro narrative turns.
Shares reflect that. Shares peaked near $1,048.95 on May 15 before pulling back. YTD is still respectable at +14.74%, but the 1-year return is just 0.8%. An EVP also sold 700 shares at $993 on April 1. These are simply reasons shares are stuck.
Wall Street Sees 9.7% Upside. Our Model Says 8.5% Consensus is constructive but cautious. The analyst target sits at $1,082.33, with 3 strong buys, 19 buys, 13 holds, 1 sell, and 1 strong sell. Bullish skew runs 59%. Citi resumed coverage of Costco with a Neutral rating and $1,020 price target.
Our base case lands at $1,070.32 with 90% confidence, with an optimistic case of $1,151.08 and a bear case of $976.48. My read: both Wall Street and our model are underweighting earnings acceleration. YoY earnings growth of 45.5% reads as a growth-stock figure attached to a recession-resistant business. That combination usually gets re-rated higher, not lower.
The Path to $1,250 Per Share Reaching $1,250 from today’s price of $986.68 would require a gain of 26.7%.
With forward EPS of $21.69, a price of $1,250 implies a forward P/E of 58x. Our base case of $1,070.32 already implies 50x, meaning the bold target requires roughly 8x of additional multiple expansion.
Is that crazy? Not given the inputs. The 247Factor adjustment of 1.075 is driven by strong earnings momentum and 59% bullish analyst sentiment.
The catalysts are real: digitally enabled comparable sales rose 21.1% in the four weeks ending May 31 while total comps grew 12.5%. Costco is also positioned to outperform Walmart as gas prices surge because its affluent membership base absorbs fuel inflation.
And CFO Gary Millerchip announced targeted Kirkland Signature price reductions in May, a margin-positive trade in disguise. The primary risk is a consumer sentiment collapse that derails membership renewals.
Where Costco Trades Today vs Its Earnings Power At $986.68 on forward EPS of $21.69, the stock trades around 45x forward earnings. Expensive on paper. Reasonable when you consider 89.7% worldwide renewal rates and 75% executive membership penetration.
Shares sit between a 52-week low of $841.69 and high of $1,096.50. Zoom out and the long term is striking: COST is up 649.43% over the last 10 years. That is the multiple-expansion engine in action.
Is $1,250 Realistic? Here’s My Take Reaching $1,250 requires a 26.7% gain and a re-rating to roughly 58x forward earnings. That is a stretch, but it is the kind of stretch this business has earned before.
Three things need to go right: earnings growth stays north of 13% per quarter, membership economics keep compounding, and the macro avoids an outright recession. What derails it is a sharp drop in renewal rates or a sentiment-driven multiple compression. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Costco could reach $1,250 in 2027.
Key Takeaways Costco's membership model is strengthening through deeper engagement, not just member additions.Executive members rose 9.6% year over year to 41.2 million and accounted for 75% of sales.Membership fee income climbed 10.7% to $1.37B, with renewals strong in the U.S., Canada and globally. Costco Wholesale Corporation’s (COST - Free Report) membership model appears to be gaining strength not simply through member additions, but through deeper engagement. The latest quarter saw high renewal rates, rising executive membership penetration and solid membership income growth, suggesting member loyalty remains intact.
Membership fee income increased 10.7% year over year to $1,373 million during the third quarter of fiscal 2026. While part of the gain reflected the membership fee increase implemented in September 2024, management noted that membership income still grew 7%, excluding the fee increase and foreign exchange impacts, driven by member growth and executive membership upgrades.
The most notable development was the continued expansion of executive memberships. Executive members reached 41.2 million at quarter-end, up 9.6% from the prior year, far outpacing overall paid membership growth of 4.1%. The company also launched its executive membership program in China and reported stronger-than-expected early adoption. Executive members accounted for 75% of sales, underscoring their importance to the overall membership ecosystem.
Management emphasized that executive members typically shop more often and spend more than standard members, making this mix shift particularly meaningful for the overall membership ecosystem.
Renewal metrics also remained exceptionally strong. Costco reported a 92.2% renewal rate in the United States and Canada and an 89.7% renewal rate worldwide. Management highlighted that targeted digital communication and retention initiatives helped offset pressure from the growing mix of online sign-ups, which historically renew at lower rates.
Taken together, rising executive penetration, resilient renewals and sustained membership income growth indicate that Costco is not only retaining members effectively but also increasing the value it derives from each membership relationship.
Walmart & BJ’s Wholesale: Membership Momentum Remains StrongCostco is not the only retailer benefiting from a stronger membership ecosystem. Walmart Inc. (WMT - Free Report) continues to deepen engagement through Walmart+, with membership fee revenues rising 17.4% globally in the first quarter and Walmart+ recording a record level of net additions. Management noted that membership has become an increasingly important profit stream, with members spending significantly more than non-members and utilizing benefits such as fuel savings and faster delivery.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) reported robust membership trends. Membership fee income increased 9.9% year over year to a record $132.4 million, supported by strong member acquisition, retention and higher-tier membership penetration. Management emphasized that higher-tier members remain more engaged, shop more frequently and generate greater lifetime value.
Like Costco, both Walmart and BJ’s Wholesale are demonstrating that a growing base of loyal, higher-value members can drive recurring revenues, stronger engagement and long-term sales growth.
What the Latest Metrics Say About CostcoCostco has seen its shares tumble 1.4% over the past three months against the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.14, higher than the industry’s ratio of 31.26. However, it is trading below its 12-month median level of 46.55, indicating some moderation in valuation despite sustained investor confidence in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.4% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 5 cents and 6 cents to $20.38 and $22.46, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco ve 3. čtvrtletí fiskálního roku 2026 zvýšila tržby o 11,6 % a míra obnovování členství v USA a Kanadě dosáhla 92,2 %. Akcie ale i tak klesly o více než 4 % po poslední výsledkové zprávě.
Costco (COST +0.80%) continues to prove to the market that it's a consistent performer in uncertain macroeconomic times. During its fiscal 2026 third quarter (ended May 10), the company reported 11.6% year-over-year revenue growth. Perhaps even more impressive, its U.S. and Canada memberships had a renewal rate of 92.2%.
This didn't prevent the shares from falling. As of June 22, this retail stock trades more than 4% below its price prior to the last earnings report on May 28. Should investors buy the dip?
Image source: The Motley Fool.
Same-store sales were lifted by higher gas prices Costco opened four net new warehouses last quarter, which supports revenue growth. However, the bigger contributing factor was same-store sales (SSS), which were up 9.8%. The average ticket size rose 7.3%. But it was encouraging to also see foot traffic increase by 2.4%. Excluding the impact of higher gas prices, Costco's SSS still climbed a healthy 6.6%.
The current economic backdrop plays to Costco's benefit. Inflation is at a three-year high, so households are starting to care more about saving money in an effort to find greater value within their budgets.
"Our goal is to be the first to lower prices and the last to raise them," CEO Ron Vachris said on the Q3 2026 earnings call. Products in a range of categories saw price reductions last quarter.
That sort of customer value proposition might explain why the number of membership households grew by 4.1% year over year to 82.9 million. And the renewal rate in the U.S. and Canada was 92.2%, improving by 10 basis points sequentially from the previous quarter.
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It's hard to pinpoint why the market reacts the way it does Costco's Q3 financial results looked solid on the surface. Therefore, it can be difficult for investors to figure out why the market reacted the way it did, bidding the company's share price down.
While revenue exceeded analyst estimates, the business posted diluted earnings per share (EPS) that matched expectations. Investors might have wanted to see a meaningful bottom-line beat.
Whatever variables you believe pressured the stock price, it's still obvious that shares trade at an expensive valuation. Investors who want to buy Costco must be comfortable with a price-to-earnings ratio of 47.8. This is what's required to own a business whose diluted EPS is projected to grow at a compound annual rate of 11.1% between fiscal 2025 and fiscal 2028, according to consensus analyst estimates.
Costco's durability in any economic environment certainly deserves a premium. But even though it's trading 13% below its record, investors should stay away from the stock to avoid the risk of severely overpaying.
Moody’s spustila první sadu AI dovedností pro Microsoft 365 Copilot Cowork a další kompatibilní platformy. Nástroje mají z jednoho zadání zpracovat složité analytické úlohy opřené o ratingy, výzkum a risk intelligence.
Launching today on Microsoft 365 Copilot Cowork, with availability expanding across compatible AI platforms
NEW YORK--(BUSINESS WIRE)--Moody’s Corporation (NYSE: MCO) today announced the release of its first set of AI skills – purpose-built, platform-agnostic instruction kits that encode Moody’s analytical frameworks and connect AI agents to its decision-grade intelligence. Available across compatible AI platforms beginning with Microsoft 365 Copilot Cowork, Moody’s skills enable customers to execute complex analytical workflows through a single natural-language request, with outputs grounded in Moody’s proprietary ratings, research, and risk intelligence.
“Moody’s is among the first financial data providers to deliver a full library of skills on an open standard, and today’s launch is just the beginning,” said Cristina Pieretti, Head of Digital Content and Innovation at Moody’s. “AI platforms are becoming the interface for financial decision-making, and the next phase of adoption will be defined by execution. Skills are how we encode Moody’s expertise into that execution layer.”
Skills are emerging as the standard for how AI agents execute specialist work. By publishing its analytical frameworks as skills that run on the platforms where market participants already build and operate, Moody’s is embedding its decision-grade intelligence at the center of how financial analysis is executed across the industry.
Moody’s first wave of skills covers high-priority financial workflows where Moody’s expertise is most concentrated:
Earnings Call Summary – Summarizes earnings call transcripts, covering revenue trends, pricing dynamics, consumer health, tariff exposure, and more. Peer Analysis – Produces an investor-grade comparison across leverage, profitability, ESG, credit quality, and more. Public Information Book – Builds a comprehensive dossier on a single entity, spanning financials, governance, competitive landscape, and risk profile. Rating Pitch – Generates a structured pitch deck covering sector context, rating history, and peer positioning. Sector Analysis – Combines Moody’s proprietary research with live market intelligence to deliver a full sector-level outlook. Each skill encodes analytical steps and quality standards to produce outputs that are consistent, sourced, and defensible for high-stakes decision-making in regulated environments. A skill defines how the work is done; Moody's Model Context Protocol (MCP) servers connect it to the data it runs on. MCP is the open standard that lets an AI agent draw directly on Moody's ratings, research, and risk intelligence, so the outputs are grounded in proprietary data rather than general-purpose web content.
A skill teaches an AI agent how to perform a task to a defined standard, captured in a simple, shareable instruction file. Moody's skills are built on the open SKILL.md format, which originated with Anthropic and has since been adopted by platforms like OpenAI, Microsoft, Google, and Amazon. Because the standard is open, the institutional knowledge encoded in each skill is a durable, portable asset rather than a capability locked to one provider, built once and able to run on any compatible platform.
Moody's plans to expand its library of skills to include credit analysis, lead generation, third-party due diligence, and insurance underwriting – extending its analytical frameworks into more of the high-stakes workflows where financial professionals operate. Each new skill will follow the same open, platform-agnostic standard, ensuring the institutional knowledge remains a durable, portable asset across compatible AI platforms.
To learn more, visit https://www.moodys.com/web/en/us/creditview/blog/moodys-skills.html
About Moody’s Corporation
In a world shaped by increasingly interconnected risks, Moody's (NYSE: MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information in this document are made as of the date hereof, and Moody’s undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. Factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of Moody’s annual report on Form 10-K for the year ended December 31, 2025, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition.
First Solar v 1. čtvrtletí zvýšila tržby na 1,04 miliardy USD, meziročně o 24 %, a těží z poptávky po solární energii pro AI datová centra. Firma má také zajištěný backlog 47,9 GW.
First Solar (FSLR 5.30%) has been on an absolute roller coaster. It has more than tripled over the past five years, but that includes multiple 20% and 40% drops along the way.
Elon Musk has his eyes set on solar-powered AI data centers for SpaceX. Furthermore, the Solar Energy Industries Association released a report last year detailing how the U.S.'s AI leaders are investing billions of dollars into solar energy.
Using solar energy as an AI data center power source can put less strain on the electric grid, and First Solar fits nicely into that objective. A 2% year-to-date drop in the stock price suggests that not every investor sees this opportunity quite yet.
Image source: Getty Images.
First Solar has multi-year revenue visibility First-quarter results offered reasons for optimism, especially if First Solar continues to ride AI tailwinds. Net sales reached $1.04 billion, which was up by 24% year over year. The company cited an "increase in the volume of modules sold to third parties" as a major catalyst, which was fueled by AI demand.
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First Solar also has a contracted 47.9-gigawatt backlog, providing multiple years of high-growth revenue visibility. For instance, the company expects to sell 17.6 gigawatts at the projected 2026 midpoint and earn $5.05 billion. Megawatt rates vary by project, but the company said its 47.9 gigawatts of capacity equate to $14.4 billion in contracted backlog through 2030.
Record sales in India contributed to the results. The company sold approximately 1 gigawatt worth of energy to the country in Q1. First Solar also mentioned "substantially committed" U.S. production through 2028.
The valuation is extremely low First Solar currently has a 16.5 price-to-earnings (P/E) ratio and a 0.67 price/earnings-to-growth (PEG) ratio. Those valuations are shockingly low for a company that has achieved an annualized revenue growth rate of 25.8% over the past three years. High top-line growth has also come with rising profit margins, with net margins reaching 33% in Q1.
First Solar also has a much lower valuation than its peers. Enphase Energy trades at a 51.1 P/E ratio despite posting year-over-year revenue declines in recent quarters. Meanwhile, SolarEdge remains unprofitable, but has a projected forward P/E ratio of 208.
Demand for First Solar's utility-scale solar energy should continue to gain momentum amid the AI build-out. Not everyone will want to rely on the electric grid for power, and if Musk launches AI data centers into space, they will need solar panels. The current valuation offers a reasonable margin of safety for what can be a compelling long-term opportunity.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends First Solar. The Motley Fool recommends Enphase Energy. The Motley Fool has a disclosure policy.
Evropská komise schválila Trodelvy od společnosti Gilead jako první léčbu první linie pro metastatický triple-negativní karcinom prsu u pacientek, které nejsou kandidátkami na inhibitory PD-1/PD-L1.
FOSTER CITY, Calif.--(BUSINESS WIRE)--Gilead Sciences, Inc. (Nasdaq: GILD) today announced that the European Commission (EC) has granted marketing authorization for Trodelvy® (sacituzumab govitecan-hziy) as monotherapy for the treatment of adult patients with unresectable or metastatic triple-negative breast cancer (TNBC) who have not received prior systemic therapy for metastatic disease and are not candidates for PD-1 or PD-L1 inhibitor therapy. Trodelvy is the first antibody-drug conjugate (ADC) to be approved in first-line metastatic TNBC in the European Union’s 27 member states, as well as Norway, Iceland and Liechtenstein.
“This approval brings a profound sense of hope to a community that has long been waiting for progress,” said Dr. Javier Cortes, Head of the International Breast Cancer Center, Madrid and Barcelona, Spain. “For women diagnosed with metastatic TNBC, particularly those who are younger, every second counts, and having an effective treatment option that can delay the progression of their disease is invaluable. This is the kind of meaningful advance our community needs.”
For many living with metastatic TNBC, the most aggressive form of breast cancer, first-line therapy may be their only line of treatment, creating an urgent need for effective treatment options to be used as early as possible.
“This approval represents a significant step forward in how we treat people with first-line metastatic TNBC in Europe,” said Mika Kakefuda Derynck, MD, Senior Vice President, Clinical Development, Oncology at Gilead Sciences. “We have long recognized the challenges that patients and clinicians face with this aggressive cancer, and we believe this approval will provide a much-needed new option for people with metastatic TNBC.”
The EC’s marketing authorization is based on data from the Phase 3 ASCENT-03 study which demonstrated a highly statistically significant and clinically meaningful progression-free survival for Trodelvy compared to standard of care chemotherapy as a first-line treatment. In ASCENT-03, Trodelvy demonstrated a 38% reduced risk of disease progression or death in patients who are not candidates for PD-1/PD-L1 inhibitors. The ASCENT-03 study utilized a patient-centered crossover design, which allowed patients in the chemotherapy arm to receive Trodelvy after their disease progressed. The EC’s approval, based on the strength of the PFS data, confirms the study's objective to demonstrate using Trodelvy earlier provides a clinical benefit over chemotherapy for metastatic TNBC patients.
Continued Global Regulatory Filings for Trodelvy in First-Line Metastatic TNBC
Gilead has submitted a supplemental filing to the European Medicines Agency for Trodelvy in combination with Keytruda® (pembrolizumab) for patients with PD-L1 positive unresectable locally advanced or metastatic TNBC, based on data from the Phase 3 ASCENT-04 study. This application is currently under review. If approved, Trodelvy has the potential to be a backbone treatment in 1L metastatic TNBC, across PD-L1 status in Europe. In the U.S., Gilead has also submitted supplemental filings to the Food and Drug Administration (FDA) for Trodelvy for the first-line treatment of adult patients with unresectable locally advanced or metastatic TNBC as a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy, or in combination with Keytruda or Keytruda Qlex in patients whose tumors express PD-L1 (CPS ≥10) as determined by an FDA-authorized test.
KEYTRUDA® and KEYTRUDA QLEX™ are trademarks of Merck Sharp & Dohme LLC., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA
About Triple-Negative Breast Cancer In Patients Who Are Not Candidates for PD-1/PD-L1 Inhibitors
TNBC is the most aggressive type of breast cancer and has historically been difficult to treat, accounting for approximately 15% of all breast cancers. TNBC disproportionally impacts younger, premenopausal, and Black and Hispanic women. TNBC cells do not have estrogen and progesterone receptors and have limited HER2 expression. Due to the nature of TNBC, treatment options are extremely limited compared with other breast cancer types. TNBC has a higher chance of recurrence and metastases than other breast cancer types. The average time to metastatic recurrence for TNBC is approximately 2.6 years compared with 5 years for other breast cancers, and the relative five-year survival rate is much lower. Among women with metastatic TNBC, the five-year survival rate is 12%, compared with 28% for those with other types of mBC.
About Trodelvy
Trodelvy (sacituzumab govitecan-hziy) is a Trop-2-directed antibody-drug conjugate. Trop-2 is a cell surface antigen highly expressed in multiple tumor types, including in more than 90% of breast and lung cancers. Trodelvy is intentionally designed with a proprietary hydrolyzable linker attached to SN-38, a topoisomerase I inhibitor payload. This unique combination delivers potent activity to both Trop-2 expressing cells and the tumor microenvironment through a bystander effect.
Outside of Europe, Gilead has submitted supplemental applications to the U.S. Food and Drug Administration (FDA) for approval of Trodelvy based on the ASCENT-03 and ASCENT-04 studies.
Healthcare professionals have substantial clinical experience with Trodelvy, with more than 75,000 breast cancer patients treated since 2020. In addition to its first-line indication approval, Trodelvy is currently approved in more than 60 countries for patients with second-line or later mTNBC and in over 50 countries for certain patients with pre-treated HR+/HER2- metastatic breast cancer. It is the only ADC with four positive Phase 3 trials in HER2-negative metastatic breast cancer and the only Trop-2-directed ADC to demonstrate a meaningful overall survival benefit in two distinct types of metastatic breast cancer.
Trodelvy is currently being evaluated in multiple ongoing Phase 3 trials across different tumor types, including in small cell lung cancer and gynecologic cancers, where previous proof-of-concept studies have demonstrated clinical activity.
U.S. Indications for Trodelvy
TRODELVY® (sacituzumab govitecan-hziy) is a Trop-2-directed antibody and topoisomerase inhibitor conjugate indicated for the treatment of adult patients with:
Unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC) who have received two or more prior systemic therapies, at least one of them for metastatic disease. Unresectable locally advanced or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+ or IHC 2+/ISH–) breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. U.S. Important safety information FOR TRODELVY
BOXED WARNING: NEUTROPENIA AND DIARRHEA
TRODELVY can cause severe, life-threatening, or fatal neutropenia. Withhold TRODELVY for absolute neutrophil count below 1500/mm3 or neutropenic fever. Monitor blood cell counts periodically during treatment. Primary prophylaxis with G-CSF is recommended for all patients at increased risk of febrile neutropenia. Initiate anti-infective treatment in patients with febrile neutropenia without delay. TRODELVY can cause severe diarrhea. Monitor patients with diarrhea and give fluid and electrolytes as needed. At the onset of diarrhea, evaluate for infectious causes and, if negative, promptly initiate loperamide. If severe diarrhea occurs, withhold TRODELVY until resolved to ≤ Grade 1 and reduce subsequent doses. CONTRAINDICATIONS
Severe hypersensitivity reaction to TRODELVY. WARNINGS AND PRECAUTIONS
Neutropenia: Severe, life-threatening, or fatal neutropenia can occur as early as the first cycle of treatment and may require dose modification. Neutropenia occurred in 64% of patients treated with TRODELVY. Grade 3-4 neutropenia occurred in 49% of patients. Febrile neutropenia occurred in 6%. Neutropenic colitis occurred in 1.4%. Primary prophylaxis with G-CSF is recommended starting in the first cycle of treatment in all patients at increased risk of febrile neutropenia, including older patients, patients with previous neutropenia, poor performance status, organ dysfunction, or multiple comorbidities. Monitor absolute neutrophil count (ANC) during treatment. Withhold TRODELVY for ANC below 1500/mm3 on Day 1 of any cycle or below 1000/mm3 on Day 8 of any cycle. Withhold TRODELVY for neutropenic fever. Treat neutropenia with G-CSF and administer prophylaxis in subsequent cycles as clinically indicated or indicated in Table 2 of USPI.
Diarrhea: Diarrhea occurred in 64% of all patients treated with TRODELVY. Grade 3-4 diarrhea occurred in 11% of patients. One patient had intestinal perforation following diarrhea. Diarrhea that led to dehydration and subsequent acute kidney injury occurred in 0.7% of all patients. Withhold TRODELVY for Grade 3-4 diarrhea and resume when resolved to ≤ Grade 1. At onset, evaluate for infectious causes and if negative, promptly initiate loperamide, 4 mg initially followed by 2 mg with every episode of diarrhea for a maximum of 16 mg daily. Discontinue loperamide 12 hours after diarrhea resolves. Additional supportive measures (e.g., fluid and electrolyte substitution) may also be employed as clinically indicated. Patients who exhibit an excessive cholinergic response to treatment can receive appropriate premedication (e.g., atropine) for subsequent treatments.
Hypersensitivity and Infusion-Related Reactions: TRODELVY can cause serious hypersensitivity reactions including life-threatening anaphylactic reactions. Severe signs and symptoms included cardiac arrest, hypotension, wheezing, angioedema, swelling, pneumonitis, and skin reactions. Hypersensitivity reactions within 24 hours of dosing occurred in 35% of patients. Grade 3-4 hypersensitivity occurred in 2% of patients. The incidence of hypersensitivity reactions leading to permanent discontinuation of TRODELVY was 0.2%. The incidence of anaphylactic reactions was 0.2%. Pre-infusion medication is recommended. Have medications and emergency equipment to treat such reactions available for immediate use. Observe patients closely for hypersensitivity and infusion-related reactions during each infusion and for at least 30 minutes after completion of each infusion. Permanently discontinue TRODELVY for Grade 4 infusion-related reactions.
Nausea and Vomiting: TRODELVY is emetogenic and can cause severe nausea and vomiting. Nausea occurred in 64% of all patients treated with TRODELVY and Grade 3-4 nausea occurred in 3% of these patients. Vomiting occurred in 35% of patients and Grade 3-4 vomiting occurred in 2% of these patients. Premedicate with a two or three drug combination regimen (e.g., dexamethasone with either a 5-HT3 receptor antagonist or an NK1 receptor antagonist as well as other drugs as indicated) for prevention of chemotherapy-induced nausea and vomiting (CINV). Withhold TRODELVY doses for Grade 3 nausea or Grade 3-4 vomiting and resume with additional supportive measures when resolved to Grade ≤ 1. Additional antiemetics and other supportive measures may also be employed as clinically indicated. All patients should be given take-home medications with clear instructions for prevention and treatment of nausea and vomiting.
Increased Risk of Adverse Reactions in Patients with Reduced UGT1A1 Activity: Patients homozygous for the uridine diphosphate-glucuronosyl transferase 1A1 (UGT1A1)*28 allele are at increased risk for neutropenia, febrile neutropenia, and anemia and may be at increased risk for other adverse reactions with TRODELVY. The incidence of Grade 3-4 neutropenia was 58% in patients homozygous for the UGT1A1*28, 49% in patients heterozygous for the UGT1A1*28 allele, and 43% in patients homozygous for the wild-type allele. The incidence of Grade 3-4 anemia was 21% in patients homozygous for the UGT1A1*28 allele, 10% in patients heterozygous for the UGT1A1*28 allele, and 9% in patients homozygous for the wild-type allele. Closely monitor patients with known reduced UGT1A1 activity for adverse reactions. Withhold or permanently discontinue TRODELVY based on clinical assessment of the onset, duration and severity of the observed adverse reactions in patients with evidence of acute early-onset or unusually severe adverse reactions, which may indicate reduced UGT1A1 function.
Embryo-Fetal Toxicity: Based on its mechanism of action, TRODELVY can cause teratogenicity and/or embryo-fetal lethality when administered to a pregnant woman. TRODELVY contains a genotoxic component, SN-38, and targets rapidly dividing cells. Advise pregnant women and females of reproductive potential of the potential risk to a fetus. Advise females of reproductive potential to use effective contraception during treatment with TRODELVY and for 6 months after the last dose. Advise male patients with female partners of reproductive potential to use effective contraception during treatment with TRODELVY and for 3 months after the last dose.
ADVERSE REACTIONS
In the pooled safety population, the most common (≥ 25%) adverse reactions including laboratory abnormalities were decreased leukocyte count (84%), decreased neutrophil count (75%), decreased hemoglobin (69%), diarrhea (64%), nausea (64%), decreased lymphocyte count (63%), fatigue (51%), alopecia (45%), constipation (37%), increased glucose (37%), decreased albumin (35%), vomiting (35%), decreased appetite (30%), decreased creatinine clearance (28%), increased alkaline phosphatase (28%), decreased magnesium (27%), decreased potassium (26%), and decreased sodium (26%).
In the ASCENT study (locally advanced or metastatic triple-negative breast cancer), the most common adverse reactions (incidence ≥25%) were fatigue, diarrhea, nausea, alopecia, constipation, vomiting, abdominal pain, and decreased appetite. The most frequent serious adverse reactions (SAR) (>1%) were neutropenia (7%), diarrhea (4%), and pneumonia (3%). SAR were reported in 27% of patients, and 5% discontinued therapy due to adverse reactions. The most common Grade 3-4 lab abnormalities (incidence ≥25%) in the ASCENT study were reduced neutrophils, leukocytes, and lymphocytes.
In the TROPiCS-02 study (locally advanced or metastatic HR-positive, HER2-negative breast cancer), the most common adverse reactions (incidence ≥25%) were diarrhea, fatigue, nausea, alopecia, and constipation. The most frequent serious adverse reactions (SAR) (>1%) were diarrhea (5%), febrile neutropenia (4%), neutropenia (3%), abdominal pain, colitis, neutropenic colitis, pneumonia, and vomiting (each 2%). SAR were reported in 28% of patients, and 6% discontinued therapy due to adverse reactions. The most common Grade 3-4 lab abnormalities (incidence ≥25%) in the TROPiCS-02 study were reduced neutrophils and leukocytes.
DRUG INTERACTIONS
UGT1A1 Inhibitors: Concomitant administration of TRODELVY with inhibitors of UGT1A1 may increase the incidence of adverse reactions due to potential increase in systemic exposure to SN-38. Avoid administering UGT1A1 inhibitors with TRODELVY.
UGT1A1 Inducers: Exposure to SN-38 may be reduced in patients concomitantly receiving UGT1A1 enzyme inducers. Avoid administering UGT1A1 inducers with TRODELVY.
Please see full Prescribing Information, including BOXED WARNING.
About Gilead and Kite Oncology
Gilead and Kite Oncology are working to transform how cancer is treated. We are innovating with next-generation therapies, combinations and technologies to deliver improved outcomes for people with cancer. We are purposefully building our oncology portfolio and pipeline to address the greatest gaps in care. From antibody-drug conjugate technologies and small molecules to cell therapy-based approaches, we are creating new possibilities for people with cancer.
About Gilead Sciences
Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer and inflammation. In 2025, Gilead announced a planned $32 billion investment to further strengthen its U.S. footprint to power the next era of discovery, job creation and public health preparedness – while continuing to invest globally to ensure patients everywhere benefit from its scientific innovation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, Calif.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including Gilead’s ability to initiate, progress or complete clinical trials or studies within currently anticipated timelines or at all, and the possibility of unfavorable results from ongoing and additional clinical trials or studies, including those involving Trodelvy; uncertainties relating to regulatory applications and related filing and approval timelines, including such as the pending applications for Trodelvy in 1L mTNBC and potential applications for programs and/or indications currently under evaluation, and the risk that any regulatory approvals, if granted, may be subject to significant limitations on use or subject to withdrawal or other adverse actions by the applicable regulatory authority; the possibility that Gilead may make a strategic decision to discontinue development of these programs and, as a result, these programs may never be successfully commercialized for the indications currently under evaluation; and any assumptions underlying any of the foregoing. These and other risks, uncertainties and factors are described in detail in Gilead’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as filed with the U.S. Securities and Exchange Commission. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The reader is cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation and disclaims any intent to update any such forward-looking statements.
Trodelvy, Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc., or its related companies.
U.S. Prescribing Information for Trodelvy, including BOXED WARNING, is available at www.gilead.com.
For more information about Gilead, please visit the company’s website at www.gilead.com, follow Gilead on X/Twitter (@Gilead Sciences) and LinkedIn (@Gilead-Sciences).
AbbVie koupí Apogee za zhruba 10,9 mld. USD a získá kandidáta zumilokibart ve fázi III pro léčbu ekzému. Dohoda rozšiřuje také záběr do astmatu, COPD a nosních polypů.
Key Takeaways AbbVie will acquire Apogee for about $10.9B, adding phase III-ready eczema candidate zumilokibart.ABBV sees growth beyond Skyrizi and Rinvoq through new immunology and respiratory assets.APG273 expands AbbVie into asthma, COPD and nasal polyps, adding a potential growth platform. Shares of AbbVie (ABBV - Free Report) rose more than 6% on Monday after the company announced that it entered into a definitive agreement to acquire clinical-stage biotech Apogee Therapeutics (APGE - Free Report) for $135.11 per share, valuing the deal at about $10.9 billion. Shares of APGE also reached a 52-week high post this announcement.
The acquisition further strengthens AbbVie's dominant immunology franchise and represents another strategic step toward extending growth well into the next decade as blockbuster products Skyrizi and Rinvoq mature.
The centerpiece of the deal is Apogee's lead candidate, zumilokibart (APG777), a phase III-ready, long-acting anti-IL-13 monoclonal antibody being developed for atopic dermatitis (AD), commonly known as eczema. Earlier this year, APGE reported encouraging data from mid-stage studies highlighting the drug’s sustained efficacy with both three- and six-month maintenance dosing regimens, significantly reducing injection frequency compared with currently available biologics.
Following the acquisition, AbbVie plans to explore zumilokibart’s potential across additional IL-13-driven diseases, including prurigo nodularis, chronic spontaneous urticaria, eosinophilic esophagitis and chronic pruritus of unknown origin.
The deal also adds APG273, a fixed-dose combination candidate comprising zumilokibart and an anti-TSLP antibody, which the company plans to develop for asthma, COPD and chronic rhinosinusitis with nasal polyps.
The transaction, unanimously approved by the boards of both companies, is expected to close in the third quarter. While AbbVie expects the acquisition to become earnings accretive beginning in 2032, it anticipates the deal will dilute adjusted EPS by approximately 14 cents in 2026 and 46 cents in 2027 due to financing and development costs.
Notably, the Financial Times reported on the deal just days before the official announcement.
ABBV Stock PerformanceYear to date, the company’s shares have gained nearly 1% compared with the industry’s 3% growth.
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How Does AbbVie Benefit From the APGE BuyoutThe intent behind this acquisition is clear — AbbVie is preparing for a future beyond Skyrizi and Rinvoq by building new growth platforms that can sustain performance well into the 2030s.
A key attraction is the large and rapidly expanding AD market. During the investor call, management highlighted that biologic penetration in eczema remains below 10% despite annual growth exceeding 15%. AbbVie also noted that the moderate-to-severe AD market is roughly two to two-and-a-half times larger than psoriasis, leaving substantial room for future expansion.
AbbVie also expressed confidence in competing against market leader Dupixent, which is jointly marketed by Sanofi (SNY - Free Report) and Regeneron (REGN - Free Report) . Management believes zumilokibart could offer a differentiated profile by combining Dupixent-like efficacy with significantly improved convenience through less frequent dosing. ABBV also said it does not need to replicate the SNY/REGN drug’s entire label before gaining meaningful market share, citing its established commercial footprint in immunology and the large, underpenetrated nature of the AD market.
Some analysts on the call questioned whether zumilokibart could eventually cannibalize sales of Rinvoq. However, management pushed back against that concern, saying the company intends to replicate a "one-two punch" strategy it has successfully deployed in other immunology indications.
Under this approach, zumilokibart would be positioned as a preferred earlier-line biologic option, while Rinvoq would continue to serve patients requiring later-line treatment or those inadequately controlled on biologics. ABBV noted that this commercial strategy has already worked well in indications such as inflammatory bowel disease (IBD) and psoriatic arthritis.
Beyond dermatology, the acquisition also gives AbbVie a strategic entry point into respiratory diseases. During the call, management said the company had a stated goal of expanding into respiratory diseases and viewed asthma and COPD as large markets with significant unmet need. Through APG273, AbbVie plans to establish a presence in asthma, COPD and chronic rhinosinusitis with nasal polyps, creating another potential long-term growth driver.
ABBV’s Zacks RankAbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SSR Mining oznámila další zpětný odkup akcií za 500 milionů USD a obnovuje dividendu. Firma má po silném 1. čtvrtletí 600 milionů USD v hotovosti a 211 milionů USD volného peněžního toku.
Shares of SSR Mining (SSRM 4.75%) are building on a massive pop that started last week. The gold stock jumped 5.4% higher as of 1:45 p.m. ET Wednesday, and is up 36% in just one week, as of this writing.
The miner is about to get a windfall from an asset sale, and it has announced something that should make its shareholders happy. Gold, meanwhile, is trending higher.
Image source: Getty Images.
Why are investors buying SSR Mining stock? SSR Mining has made the most of the surge in gold prices. It recently delivered a blowout first quarter, ending it with $600 million in cash, low debt, and $211 million in free cash flow.
After already burning through $300 million to buy back its own stock, the company just announced it's dropping another $500 million on stock buybacks.
That's not all: The gold miner is also reinstating its dividend.
I fully expected SSR Mining to resume share buybacks and dividends. It suspended dividends after a fatal accident at its Copler mine in Turkey in 2024, but now has a firm deal to sell that unproductive mine for $1.5 billion before the end of the third quarter. A good portion of that money is going to go back to shareholders.
Today's Change
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SSR Mining stock could fall if this happens, but should you worry? Although $0.03 per share every quarter is a modest payout, the symbolism is huge. A dividend reinstatement and accelerated share buybacks reveal how confident management is about the company's prospects.
And why not? SSR Mining has rarely looked this strong financially. Dumping Copler removes a major overhang, leaving it a much leaner company.
Meanwhile, macro tailwinds are doing their part. Gold has picked up momentum after a precipitous fall. The yellow metal bounced back over $4,300 per ounce today after dropping to a six-month low and almost hitting $4,000 per ounce on June 10. Investors expect a U.S.-Iran peace agreement to help restore oil flows and cool off inflation and interest rate concerns.
Investors, however, should remember that the peace agreement hasn't been finalized. If it falls through, gold could easily slide back.
That, however, shouldn't hurt SSR Mining much unless gold absolutely craters. SSR Mining is in a fantastic spot, using its cash pile to reward shareholders – and that is exactly what investors should focus on.
Dollar General v 1. čtvrtletí zvýšil hrubou marži na 31,6 % a provozní marži na 5,9 %. Provozní zisk vzrostl o 10,8 % díky nižším ztrátám a lepšímu řízení zásob.
Key Takeaways Dollar General's Q1 gross margin rose 65 basis points to 31.6% on operational gains.DG benefited from higher markups, lower shrink and reduced damages despite cost pressures.Operating margin expanded 40 basis points to 5.9%, while operating profit rose 10.8%. Dollar General Corporation’s (DG - Free Report) first-quarter fiscal 2026 results indicate that its margin recovery efforts are gaining momentum. While sales growth remained steady, the more notable development was the continued expansion in profitability, driven by multiple operational initiatives rather than top-line acceleration alone.
Gross margin improved 65 basis points year over year to 31.6%, reflecting benefits from higher inventory markups, lower shrink and reduced inventory damages. These gains more than offset increased markdown activity and higher transportation costs. Management highlighted that shrink mitigation remained a significant contributor, delivering a 28-basis-point reduction versus last year despite already lapping a 61-basis-point improvement in the prior-year quarter.
The improvement was not limited to one area. Dollar General pointed to stronger category management, better inventory controls and lower damages as additional drivers of margin expansion. Management said pricing was not a meaningful contributor to first-quarter markup gains, suggesting the increase stemmed primarily from operational execution rather than broad-based price increases.
The gross margin improvement flowed through to operating results. Operating margin expanded 40 basis points to 5.9%, while operating profit climbed 10.8% year over year. This performance came despite higher-than-anticipated fuel costs, underscoring the strength of the company’s internal margin initiatives.
Management also expressed confidence that margin drivers such as shrink reduction, damage improvement, supply-chain productivity, category management and DG Media Network growth still have room to contribute going forward. The first quarter, therefore, reinforced that Dollar General’s margin expansion story is being supported by a broader and more durable set of operational levers.
How Dollar General Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) reported a 6-basis-point increase in the consolidated gross profit rate to 24.3%, supported by favorable merchandise and business mix, including growth in higher-margin advertising operations. At the U.S. segment level, Walmart delivered a 29-basis-point gross margin jump, benefiting from inventory management, digital advertising growth and improved category mix. Management also highlighted that general merchandise contributed favorably to gross margin expansion for the first time in 18 quarters, underscoring the improving profitability profile at Walmart.
Meanwhile, Target Corporation (TGT - Free Report) posted a first-quarter gross margin rate of 29%, up from 28.2% a year ago. The improvement was driven by lower markdown rates, stronger advertising and other non-merchandise revenue streams, and better productivity across supply chain facilities. Target also expanded its adjusted operating margin rate to 4.5% from 3.7% last year, reflecting the benefits of improved merchandise profitability. While Target continues to invest in labor, training and marketing, its latest results indicate that operational improvements are helping offset these costs.
What the Latest Metrics Say About Dollar GeneralDollar General has seen its shares tumble 10.2% over the past three months against the industry’s rise of 4.7%.
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From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 14.97, lower than the industry’s ratio of 32.05. However, it is trading below its 12-month median level of 17.29.
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The Zacks Consensus Estimate for Dollar General’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 7.3%, respectively. For the next fiscal year, the consensus estimate indicates a 4.1% rise in sales and 8.8% growth in earnings.
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Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
