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Pfizer Inc. (NYSE: PFE) today announced that the U.S. Food and Drug Administration (FDA) has expanded approval of TALZENNA® (talazoparib) in combination with XTANDI® (enzalutamide) to the treatment of men with metastatic androgen pathway modulation-naïve or -sensitive (mAPMN/S) prostate cancer (PC) with homologous recombination repair (HRR) gene mutations, including both BRCA and non-BRCA mutations. mAPMN/S is also known as metastatic hormone-sensitive prostate cancer (mHSPC). This approval makes TALZENNA, an oral poly ADP-ribose polymerase (PARP inhibitor), plus XTANDI, an androgen receptor pathway inhibitor (ARPI), available in an earlier line, providing an opportunity to delay disease progression at a critical stage when more patients may experience greater benefit.

“Today’s approval of TALZENNA plus XTANDI builds on its established role as a standard-of-care option for men with advanced prostate cancer. Moving this targeted therapy into the androgen pathway modulation-naïve or -sensitive setting further reflects our commitment to men with HRR-mutated metastatic prostate cancer, providing a new option at a stage where it may have a greater impact to delay progression.”

- Aamir Malik, Executive Vice President, Chief U.S. Commercial Officer, Pfizer

“This approval represents a critical advancement for patients with newly diagnosed metastatic prostate cancer with HRR gene mutations, who face a more aggressive disease, worse prognosis, and limited treatment options. In the TALAPRO-3 trial, clinical benefits were consistent for patients with BRCA and non-BRCA HRR gene mutations, addressing a long-standing unmet need – and reinforcing the importance of biomarker testing at the time of diagnosis.”

- Neeraj Agarwal, M.D., FASCO, Co-director of Prostate Cancer Program at Harvard Cancer Consortium, faculty medical oncologist at Dana-Farber Cancer Institute, and global lead investigator for TALAPRO-3

TALZENNA plus XTANDI was first approved in the U.S. in 2023 for men with metastatic androgen pathway modulation resistant (mAPMR) PC with HRR gene mutations, also known as HRRm metastatic castration-resistant prostate cancer (mCRPC). The application to expand the indication was reviewed under FDA Priority Review and was supported by results from the Phase 3 TALAPRO-3 study.

Key Results from the Pivotal Phase 3 TALAPRO-3 Study

Improved Radiographic Progression-Free Survival (rPFS): TALZENNA plus XTANDI reduced the risk of radiographic progression or death by 52% vs. placebo plus XTANDI (Hazard Ratio [HR] of 0.48; 95% Confidence Interval [CI], 0.36–0.65; p ˂ 0.0001) in patients with mAPMN/S PC with HRR gene mutations and an estimated 77% of patients remained progression-free at three years. Consistent benefit was observed across patients with BRCA and non-BRCA HRR gene mutations.Consistent Safety Profile: The safety profile was consistent with the known profiles of each agent, and no new safety signals were identified. The most common treatment-emergent adverse events (TEAEs) in the TALZENNA plus XTANDI group were anemia, fatigue, decreased neutrophil count, and asthenia. The most common grade 3 or higher TEAE was anemia, reported by 51% in the TALZENNA plus XTANDI group and 3% in the control group. Five percent of patients discontinued TALZENNA due to anemia. TEAEs were generally manageable with dose modifications and supportive care as needed.Published Previously: These results were presented at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting and simultaneously published in The New England Journal of Medicine.About the TALAPRO-3 Phase 3 Study

TALAPRO-3 (NCT04821622) is a multicenter, randomized, double-blind, placebo-controlled study that enrolled 599 patients with mAPMN/S PC with ≤3 months of androgen deprivation therapy (ADT) [chemical or surgical] with or without an approved ARPI in the mAPMN/S setting at sites in the U.S., Canada, Europe, South America, and the Asia-Pacific region.Patients were randomized to receive TALZENNA 0.5 mg/day plus XTANDI 160mg/day, or placebo plus XTANDI 160mg/day.The primary endpoint is investigator-assessed rPFS, defined as the time from the date of randomization to radiographic progression in soft tissue per Response Evaluation Criteria in Solid Tumors version 1.1 (RECIST 1.1), or in bone per Prostate Cancer Working Group 3 (PCWG3) criteria by investigator assessment, or death, whichever occurs first.About mAPMN/S PC (mHSPC)

mAPMN/S PC is a form of advanced prostate cancer that has spread beyond the prostate but is still sensitive to androgen deprivation therapy.1Approximately 25% of patients with mAPMN/S PC (mHSPC) harbor HRR gene mutations.2Advancing Pfizer’s Leadership in Genitourinary Cancers
This milestone reflects Pfizer's 20-year commitment to driving advances in genitourinary cancers, and its efforts to advance precision medicines into earlier stages of disease, where they may have even more impact for patients. TALZENNA plus XTANDI is an established standard of care for HRR gene-mutated mAPMR PC and this FDA approval brings the combination to men at an earlier stage of disease, when delaying disease progression may have an even greater impact. An application is also under review by the European Medicines Agency (EMA), with additional global regulatory filings planned or underway. The FDA conducted their review of TALZENNA plus XTANDI under Project Orbis, an Oncology Center of Excellence initiative that provides a framework for concurrent submission and review of oncology drugs among international partners.

Related Content

https://www.pfizer.com/news/press-release/press-release-detail/talzenna-plus-xtandi-improves-radiographic-progression-freehttps://www.pfizer.com/news/press-release/press-release-detail/pfizers-talzennar-combination-xtandir-receives-us-fdahttps://www.nejm.org/doi/full/10.1056/NEJMoa2604126About TALZENNA® (talazoparib)
TALZENNA is an oral inhibitor of poly ADP-ribose polymerase (PARP), which plays a role in DNA damage repair. Preclinical studies have demonstrated that TALZENNA blocks PARP enzyme activity and traps PARP at the site of DNA damage, leading to decreased cancer cell growth and cancer cell death.

TALZENNA was initially approved in the U.S., EU, and multiple other regions as a single agent for the treatment of adult patients with deleterious or suspected deleterious gBRCAm HER2-negative locally advanced or metastatic breast cancer.

TALZENNA in combination with XTANDI was approved by the U.S. Food and Drug Administration (FDA) for the treatment of adult patients with HRR gene-mutated metastatic androgen pathway modulation resistant (mAPMR) PC in June 2023. The combination was also approved by the European Commission in January 2024 for the treatment of adult patients with mCRPC in whom chemotherapy is not clinically indicated. TALZENNA in combination with XTANDI is approved in more than 60 countries; indications vary by country.

About XTANDI® (enzalutamide)
XTANDI (enzalutamide) is an androgen receptor pathway inhibitor. XTANDI is a standard of care and has received regulatory approvals around the world for use in men with metastatic hormone-sensitive prostate cancer (mHSPC), mCRPC, non-metastatic castration-resistant prostate cancer (nmCRPC), and non-metastatic hormone-sensitive prostate cancer (nmHSPC) with high-risk biochemical recurrence (BCR). XTANDI is currently approved for one or more of these indications in more than 80 countries, including in the United States, European Union, and Japan. Over 1.5 million patients have been treated with XTANDI globally.3

XTANDI® is jointly developed and commercialized by Pfizer and Astellas in the United States.

TALZENNA® (talazoparib) Indications in the U.S.

TALZENNA is a poly (ADP-ribose) polymerase (PARP) inhibitor indicated for:

Breast Cancer:
As a single agent, for the treatment of adult patients with deleterious or suspected deleterious germline BRCA-mutated (gBRCAm) HER2‑negative locally advanced or metastatic breast cancer. Select patients for therapy based on an FDA‑authorized companion diagnostic for TALZENNA.

Prostate Cancer:
In combination with enzalutamide for the treatment of adult patients with:

metastatic androgen pathway modulation-resistant (mAPMR) prostate cancer with homologous recombination repair (HRR) gene mutations, as detected by an FDA-authorized test.metastatic androgen pathway modulation-naïve or -sensitive (mAPMN/S) prostate cancer with HRR gene mutations, as detected by an FDA-authorized test.IMPORTANT SAFETY INFORMATION

WARNINGS AND PRECAUTIONS

Myelodysplastic Syndrome/Acute Myeloid Leukemia (MDS/AML), including cases with a fatal outcome, has been reported in patients who received TALZENNA. In clinical studies, among 1,096 patients treated with TALZENNA as a single agent or as part of a combination regimen with enzalutamide, the cumulative incidence of MDS/AML was approximately 1% including 0.6% with fatal outcomes. The incidence of MDS/AML among patients treated with active control or with placebo in combination with enzalutamide was 0.2%. The median duration of therapy with TALZENNA in patients who developed MDS/AML was approximately 2.8 years (range: 1 to 5.8 years).

Do not start TALZENNA until patients have adequately recovered from hematological toxicity caused by previous chemotherapy. Monitor blood counts monthly during treatment with TALZENNA. For prolonged hematological toxicities, interrupt TALZENNA and monitor blood counts weekly until recovery. If counts do not recover within 4 weeks, refer the patient to a hematologist for further investigations including bone marrow analysis and blood sample for cytogenetics. If MDS/AML is confirmed, discontinue TALZENNA.

Myelosuppression consisting of anemia, leukopenia/neutropenia, and/or thrombocytopenia has been reported in patients treated with TALZENNA. Grade ≥ 3 anemia, neutropenia, and thrombocytopenia were reported, respectively, in 49%, 19%, and 9% of patients receiving TALZENNA in combination with enzalutamide. Forty-one percent of patients required a red blood cell transfusion, including 25% who required more than one transfusion. Discontinuation due to anemia, neutropenia, and thrombocytopenia occurred, respectively, in 7%, 4%, and 1% of patients.

Withhold TALZENNA until patients have adequately recovered from hematological toxicity caused by previous therapy. Monitor blood counts monthly during treatment with TALZENNA. If hematological toxicities do not resolve within 28 days, discontinue TALZENNA and refer the patient to a hematologist for further investigations including bone marrow analysis and blood sample for cytogenetics.

Embryo-Fetal Toxicity TALZENNA can cause fetal harm when administered to a pregnant woman. Advise male patients with female partners of reproductive potential or who are pregnant to use effective contraception during treatment and for 4 months following the last dose of TALZENNA.

ADVERSE REACTIONS

In the pooled safety population of 810 patients with prostate cancer, the most common (≥ 20%) adverse reactions including laboratory abnormalities were decreased hemoglobin (86%), decreased neutrophils (68%), decreased lymphocytes (62%), decreased platelets (54%), fatigue (48%), decreased albumin (26%), decreased calcium (26%), back pain (24%), decreased appetite (22%), and nausea (21%).

DRUG INTERACTIONS

Coadministration With P-gp Inhibitors The effect of coadministration of P-gp inhibitors on talazoparib exposure when TALZENNA is taken with enzalutamide has not been studied. Monitor patients for increased adverse reactions and modify the dosage as recommended for adverse reactions when TALZENNA is coadministered with a P-gp inhibitor.

Coadministration With BCRP Inhibitors Monitor patients for increased adverse reactions and modify the dosage as recommended for adverse reactions when TALZENNA is coadministered with a BCRP inhibitor. Coadministration of TALZENNA with BCRP inhibitors may increase talazoparib exposure, which may increase the risk of adverse reactions.

USE IN SPECIFIC POPULATIONS

Males of Reproductive Potential Based on animal studies, TALZENNA may impair fertility.

Renal Impairment Reduce the recommended dosage of TALZENNA in patients with moderate (CLcr 30 - 59 mL/min) and severe (CLcr 15 - 29 mL/min) renal impairment. No dose adjustment is required for patients with mild renal impairment. TALZENNA has not been studied in patients requiring hemodialysis.

INDICATIONS

TALZENNA is indicated in combination with enzalutamide for the treatment of adult patients with:

Metastatic androgen pathway modulation-resistant (mAPMR) prostate cancer with homologous recombination repair gene mutations (HRRm), as detected by an FDA-authorized testMetastatic androgen pathway modulation-naïve or -sensitive (mAPMN/S) prostate cancer with homologous recombination repair gene mutations (HRRm), as detected by an FDA-authorized testPlease see the Full Prescribing Information for TALZENNA. There may be a delay as the document is updated with the latest information. It will be available as soon as possible. Please check back for the updated full information shortly.

XTANDI® (enzalutamide) Indications in the U.S.
XTANDI (enzalutamide) is indicated for the treatment of patients with:

castration-resistant prostate cancer (CRPC)metastatic castration-sensitive prostate cancer (mCSPC)nonmetastatic castration sensitive prostate cancer (nmCSPC) with biochemical recurrence at high risk for metastasis (high-risk BCR)XTANDI® (enzalutamide) U.S. Important Safety Information

Warnings and Precautions

Seizure occurred in 0.6% of patients receiving XTANDI in eight randomized clinical trials. In a study of patients with predisposing factors for seizure, 2.2% of XTANDI-treated patients experienced a seizure. It is unknown whether anti-epileptic medications will prevent seizures with XTANDI. Patients in the study had one or more of the following predisposing factors: use of medications that may lower the seizure threshold, history of traumatic brain or head injury, history of cerebrovascular accident or transient ischemic attack, and Alzheimer’s disease, meningioma, or leptomeningeal disease from prostate cancer, unexplained loss of consciousness within the last 12 months, history of seizure, presence of a space occupying lesion of the brain, history of arteriovenous malformation, or history of brain infection. Advise patients of the risk of developing a seizure while taking XTANDI and of engaging in any activity where sudden loss of consciousness could cause serious harm to themselves or others. Permanently discontinue XTANDI in patients who develop a seizure during treatment.

Posterior Reversible Encephalopathy Syndrome (PRES) There have been reports of PRES in patients receiving XTANDI. PRES is a neurological disorder that can present with rapidly evolving symptoms including seizure, headache, lethargy, confusion, blindness, and other visual and neurological disturbances, with or without associated hypertension. A diagnosis of PRES requires confirmation by brain imaging, preferably MRI. Discontinue XTANDI in patients who develop PRES.

Hypersensitivity reactions, including edema of the face (0.5%), tongue (0.1%), or lip (0.1%) have been observed with XTANDI in eight randomized clinical trials. Pharyngeal edema has been reported in post-marketing cases. Advise patients who experience any symptoms of hypersensitivity to temporarily discontinue XTANDI and promptly seek medical care. Permanently discontinue XTANDI for serious hypersensitivity reactions.

Ischemic Heart Disease In the combined data of five randomized, placebo-controlled clinical studies, ischemic heart disease occurred more commonly in patients on the XTANDI arm compared to patients on the placebo arm (3.5% vs 2%). Grade 3-4 ischemic events occurred in 1.8% of patients on XTANDI versus 1.1% on placebo. Ischemic events led to death in 0.4% of patients on XTANDI compared to 0.1% on placebo. Monitor for signs and symptoms of ischemic heart disease. Optimize management of cardiovascular risk factors, such as hypertension, diabetes, or dyslipidemia. Discontinue XTANDI for Grade 3-4 ischemic heart disease.

Falls and Fractures occurred in patients receiving XTANDI. Evaluate patients for fracture and fall risk. Monitor and manage patients at risk for fractures according to established treatment guidelines and consider use of bone-targeted agents. In the combined data of five randomized, placebo-controlled clinical studies, falls occurred in 12% of patients treated with XTANDI compared to 6% of patients treated with placebo. Fractures occurred in 13% of patients treated with XTANDI and in 6% of patients treated with placebo.

Embryo-Fetal Toxicity The safety and efficacy of XTANDI have not been established in females. XTANDI can cause fetal harm and loss of pregnancy when administered to a pregnant female. Advise males with female partners of reproductive potential to use effective contraception during treatment with XTANDI and for 3 months after the last dose of XTANDI.

Dysphagia or Choking Severe dysphagia or choking, including events that could be life-threatening requiring medical intervention or fatal, can occur due to XTANDI product size. Advise patients to take each capsule or tablet whole with a sufficient amount of water to ensure that all medication is successfully swallowed. Consider use of a smaller tablet size of XTANDI in patients who have difficulty swallowing. Discontinue XTANDI for patients who cannot swallow capsules or tablets.

Interference with Immunoassay Measurement of Digoxin XTANDI can interfere with certain digoxin immunoassays (e.g., Chemiluminescent Microparticle Immunoassays), resulting in falsely elevated digoxin plasma concentration results. Notify the laboratory conducting the digoxin plasma concentration assay to use an appropriate method in patients receiving XTANDI and digoxin.

Adverse Reactions (ARs)
In the data from the five randomized placebo-controlled trials, the most common ARs (≥ 10%) that occurred more frequently (≥ 2% over placebo) in XTANDI-treated patients were musculoskeletal pain, fatigue, hot flush, constipation, decreased appetite, diarrhea, hypertension, hemorrhage, fall, fracture, and headache. In the bicalutamide-controlled study, the most common ARs (≥ 10%) reported in XTANDI-treated patients were asthenia/fatigue, back pain, musculoskeletal pain, hot flush, hypertension, nausea, constipation, diarrhea, upper respiratory tract infection, and weight loss.

In EMBARK, the placebo-controlled study of nonmetastatic CSPC (nmCSPC) with high-risk biochemical recurrence (BCR) patients, Grade 3 or higher adverse reactions during the total duration of treatment were reported in 46% of patients treated with XTANDI plus leuprolide, 50% of patients receiving XTANDI as a single agent, and 43% of patients receiving placebo plus leuprolide. Permanent treatment discontinuation due to adverse reactions during the total duration of treatment as the primary reason was reported in 21% of patients treated with XTANDI plus leuprolide, 18% of patients receiving XTANDI as a single agent, and 10% of patients receiving placebo plus leuprolide.

Lab Abnormalities: Lab abnormalities that occurred in ≥ 5% of patients, and more frequently (> 2%) in the XTANDI arm compared to placebo in the pooled, randomized, placebo-controlled studies are hemoglobin decrease, neutrophil count decreased, white blood cell decreased, hyperglycemia, hypermagnesemia, hyponatremia, hypophosphatemia, and hypercalcemia.

Hypertension: In the combined data from five randomized placebo-controlled clinical trials, hypertension was reported in 14.2% of XTANDI patients and 7.4% of placebo patients. Hypertension led to study discontinuation in

Drug Interactions

Effect of Other Drugs on XTANDI Avoid coadministration with strong CYP2C8 inhibitors. If coadministration cannot be avoided, reduce the dosage of XTANDI. Avoid coadministration with strong CYP3A4 inducers. If coadministration cannot be avoided, increase the dosage of XTANDI.

Effect of XTANDI on Other Drugs Avoid coadministration with certain CYP3A4, CYP2C9, and CYP2C19 substrates for which minimal decrease in concentration may lead to therapeutic failure of the substrate. If coadministration cannot be avoided, increase the dosage of these substrates in accordance with their Prescribing Information. In cases where active metabolites are formed, there may be increased exposure to the active metabolites.

Please access this link for XTANDI’s U.S. Full Prescribing Information for additional safety information.

About Pfizer: Breakthroughs That Change Patients’ Lives
At Pfizer, we apply science and our global resources to bring therapies to people that extend and significantly improve their lives. We strive to set the standard for quality, safety and value in the discovery, development and manufacture of health care products, including innovative medicines and vaccines. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with our responsibility as one of the world's premier innovative biopharmaceutical companies, we collaborate with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For more than 175 years, we have worked to make a difference for all who rely on us. We routinely post information that may be important to investors on our website at www.Pfizer.com. In addition, to learn more, please visit us on www.Pfizer.com and follow us on X at @Pfizer and @Pfizer_News, LinkedIn, YouTube and like us on Facebook at www.facebook.com/Pfizer/.

Disclosure Notice
The information contained in this release is as of October 26, 2026. Pfizer assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.

This release contains forward-looking information about Pfizer Oncology, TALZENNA and XTANDI, including their potential benefits, the TALAPRO-3 results, an approval in the U.S. for TALZENNA in combination with XTANDI to expand the use of TALZENNA plus XTANDI to the treatment of men with HRR gene-mutated metastatic androgen pathway modulation-naïve or -sensitive prostate cancer and additional global regulatory filings planned or underway, that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, uncertainties regarding the commercial success of TALZENNA in combination with XTANDI; the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for our clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; whether the TALAPRO-3 trial will meet the key secondary endpoint for overall survival; risks associated with initial, preliminary or interim data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from our clinical studies; whether and when applications for TALZENNA, XTANDI or a combination may be filed in particular jurisdictions for any potential indications; whether and when any such applications for TALZENNA, XTANDI or a combination that may be pending or filed may be approved by regulatory authorities (including the application under review by the EMA for TALZENNA in combination with XTANDI for men with HRR gene-mutated mAPMN/S PC), which will depend on myriad factors, including making a determination as to whether the product’s benefits outweigh its known risks and determination of the product’s efficacy and, if approved, whether TALZENNA, XTANDI or a combination will be commercially successful; decisions by regulatory authorities impacting labeling, manufacturing processes, safety and/or other matters that could affect the availability or commercial potential of TALZENNA, XTANDI or a combination; risks and uncertainties related to issued or future executive orders or other new, or changes in, laws or regulations; uncertainties regarding the impact of COVID-19 on Pfizer’s business, operations and financial results; and competitive developments.

A further description of risks and uncertainties can be found in Pfizer’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in its subsequent reports on Form 10-Q, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Information and Factors That May Affect Future Results”, as well as in its subsequent reports on Form 8-K, all of which are filed with the U.S. Securities and Exchange Commission and available at www.sec.gov and www.pfizer.com.

References

Troy SP, Jakubowski CD, Gartrell BA. Packing the punch: Current and emerging treatment strategies in metastatic castration-sensitive prostate cancer. Curr Urol Rep. 2025;26(1):50. doi:10.1007/s11934-025-01272-6Lee AM, Saidian A, Shaya J, et al. The Prognostic Significance of Homologous Recombination Repair Pathway Alterations in Metastatic Hormone Sensitive Prostate Cancer. Clin Genitourin Cancer. 2022;20(6):515-523. doi:10.1016/j.clgc.2022.06.016Data on file. Northbrook, IL: Astellas Inc

View source version on businesswire.com: https://www.businesswire.com/news/home/20261020160556/en/

Key Takeaways
Moderna shares have dropped after details about a trial of its cancer vaccine to treat melanoma were leaked last week.Several Wall Street analysts called the data “strong,” and suggested investors had outsized expectations for the results.

Moderna’s stock has taken a big hit that could signal the end of this year’s cancer vaccine-driven rally. It may not be too late to play the forces behind its rise.

Shares of Moderna (MRNA), which were up over 700% for the year until last Wednesday, lost nearly a fifth of their value Thursday after the leak of details from a late-stage trial of its vaccine to treat skin cancer. They fell again Friday and were down another 3% in Monday afternoon trading. 

But that doesn’t mean the data—regarding Intismeran, the company’s mRNA-based melanoma vaccine jointly developed with Merck (MRK)—was bad. Several analysts called it “strong,” with UBS telling clients it gave them more confidence in Moderna’s platform, though they and others didn’t advocate buying the dip.1 Many on Wall Street had warned that Moderna’s rally had outpaced the promise of the results, calling them a “sell-the-news” event. As we observed earlier this month on Value Add, Investopedia’s Substack, not one analyst tracked by Visible Alpha forecasted further gains for the shares. 

The data had been originally set to be presented at a conference this past weekend. The companies, which put out a press release with more information shortly after the leak, said the results found Intismeran in combination with Merck’s Keytruda reduced the risk of recurrence or death by 42%.

Go beyond the day’s market moves with Investopedia’s Value Add, where you’ll find sharp analysis, investing ideas, and practical guidance on what today’s biggest financial stories could mean for your money. Explore Value Add and subscribe on Substack.

Analysts at Citi said that while the data appeared “clinically meaningful in melanoma,” investors looking for clearer evidence of a “paradigm shift” from Moderna’s mRNA platform to treat other cancers were likely disappointed.23 A “melanoma win” just won’t be enough for Moderna anymore, they told clients, with the stock’s valuation already pricing in success with a wider range of cancers, and “exceptionally high” expectations for the results of subsequent trials that are underway. 

It might be a different story for Merck, shares of which haven’t seen the same magnitude of boost—or drop—as Moderna. Analysts are still widely bullish about the stock, which was little changed last week. The shares were down 3% in recent trading, leaving them 33% higher for the year. Bullish analysts at Goldman Sachs said they still see room to rise for Merck, which is set to report earnings Thursday.45 

Analysts are also supportive of BioNTech (BNTX), another mRNA cancer vaccine play. It’s set to report earnings on Nov. 3.6 Shares of BioNTech have lost about 5% in the days following the leak of Moderna’s trial data last week and are down 9% for the year. 

Analysts are more divided on shares of DNA sequencing machine maker Illumina (ILMN), which plays an essential role in the production of Intismeran and is set to report earnings Thursday.7 Its shares have already doubled in value since the year began. At around $270 in recent trading, they’ve pulled ahead of the $241 mean target compiled by Visible Alpha, but remain well off the highest target tracked at $365. 

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A one-dollar deals sign is displayed at a Dollar General discount store in California.

Patrick T. Fallon / AFP via Getty Images

Dollar General is facing fresh federal scrutiny over its pricing practices.

The US Federal Trade Commission said Monday it has filed a lawsuit, along with 20 states, accusing the discount retailer of deceptive pricing on its shelves, price tags, and advertisements.

"Dollar General has, for years, repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem," the FTC said in a statement.

The company operates more than 21,000 US stores and typically serves customers in more rural and low-income areas of the country.

The filings say Dollar General has received tens of thousands of complaints from shoppers who said they did not receive an advertised price and that the company failed to adequately address the problem.

As a result, Dollar General received millions of dollars from overcharging customers, the FTC alleged.

Dollar General did not immediately respond to a request for comment on this story.

The action comes less than two weeks after New York Attorney General Letitia James reached a settlement of nearly $1.9 million in food and personal items as a civil penalty for overcharging shoppers in the state. New York did not join the FTC's complaint.

US consumers have been particularly worried about fairness in retail pricing as more stores introduce digital price tags. Both Walmart and Target have issued public statements promising price transparency and consistency online and at the register. Home Depot recently did the same.

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Dominick Reuter

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Dominick Reuter is a senior retail reporter for Business Insider, primarily covering Walmart, Target, Costco, and other big box retailers. His stories tend to focus on issues and trends that affect employees and customers, such as affordability challenges and the growing race to provide ultra-fast delivery services on e-commerce orders.Prior to joining BI in 2019, Dominick worked for more than a decade as an independent photojournalist covering a wide range of stories for global wire services and newspapers, including Reuters, the Wall Street Journal, and Agence France-Presse.Dominick studied photojournalism at Boston University and later earned a Masters in business and economics journalism from Columbia University.If you're an employee or customer with a story to share, please contact me via email or text/call/Signal at 646-768-4750.

Abbott Laboratories (ABT +1.15%) has had a rough go of it over the past few years. Sales growth hasn't met market expectations, and the company has faced various legal and regulatory challenges. But is the healthcare leader ready to turn over a new leaf? Abbott Laboratories announced its third-quarter update on Oct. 21, and along with its financial results, the company shared news that investors should welcome with open arms.

Image source: The Motley Fool.

A major business decisionAbbott Laboratories' third-quarter financial results were pretty good. The company's sales were $13 billion, growing 7% year over year on a comparable basis. The healthcare leader's adjusted earnings per share came in at $1.42, 9% higher than the year-ago period. Abbott's medical device and established pharmaceuticals segments remain the biggest growth drivers.

Medical device sales jumped 7.8% year over year on a comparable basis to $5.8 billion, while pharmaceutical revenue was $1.6 billion, 8.4% higher than the year-ago period. However, the company's nutrition business is still posting the slowest sales growth among the company's major business segments. It recorded $2.3 billion in revenue, up 4.9% year over year.

Abbott's nutrition segment has faced multiple headwinds in recent years. For instance, back in 2022, the company recalled several infant formula products following reports of bacterial infections among infants who had consumed them.

Abbott has also faced lawsuits alleging that some of its formula products designed for premature infants increase the risk of a dangerous and potentially deadly intestinal disease called necrotizing enterocolitis.

These problems (and several others) have likely contributed to lower demand for some of the company's nutrition products, leading to slower-than-expected sales growth. That's why Abbott's recent decision about its nutrition business is noteworthy. The company will spin off this segment into a stand-alone company.

This could lead to stronger revenue and earnings growth over the long run, as well as higher margins, while allowing the company to avoid the legal and regulatory obstacles the nutrition unit has encountered.

ABT Abbott Laboratories$104.89+$1.19 (+1.15%)

NYSE · As of 3:59 PM ET 10/26/26

What's next for Abbott?Earlier this year, Abbott Laboratories closed its $21 billion cash acquisition of Exact Sciences, a company that specializes in developing cancer diagnostics tests. Exact Sciences' most important product, Cologuard, a non-invasive test for colorectal cancer, is one of the most successful products in this niche.

Exact Sciences was also developing several other products that Abbott Laboratories will inherit, allowing it to tap into the growing cancer diagnostic market. That, combined with the spin-off of its nutrition business, should work wonders for the company's top-line growth.

Meanwhile, Abbott Laboratories' medical device segment arguably remains the most important for its long-term prospects. Several medical device products should help drive sales growth over the medium term. Consider the company's FreeStyle Libre, a series of continuous glucose monitoring (CGM) systems that help patients with diabetes track their blood glucose levels.

The FreeStyle Libre is one of the leading devices in this niche, and it has powered Abbott's diabetes care unit for years. In the third quarter, diabetes care sales were $2.2 billion, accounting for nearly 17% of the company's total sales and growing by 6.7% year over year.

Abbott still sees a large CGM market globally. It estimates that 70 million to 80 million of the half-billion patients with diabetes worldwide would benefit from CGM technology. Currently, the number of people on CGM is between about 10 million and 12 million.

In other words, the market is severely underpenetrated, and Abbott is ideally positioned to be one of the major winners over the long run as this industry expands. Abbott has other promising products in its medical device unit, and the company's deep technological expertise should enable it to launch newer, better ones, as it regularly does.

So, the healthcare giant's prospects remain intact. Then there is Abbott's dividend program. The company is a Dividend King, a corporation that has increased its dividends for at least 50 consecutive years. Abbott's membership in this elite group makes it an excellent pick for long-term income investors.

CVS Health (CVS -1.21%) is a leading pharmaceutical retailer that also has a significant health insurance business through Aetna. It's a highly diversified healthcare company that can give investors some excellent exposure to the sector.

Earlier this year, it reached highs of more than $110. But it's been trading considerably lower of late. Could this top healthcare stock be a great buy while it's trading well below $100?

Image source: Getty Images.

The company is having a much better year in 2026When CVS last reported earnings in August, it generated some solid numbers, with revenue rising by more than 7%, totaling $106.1 billion. In addition, it also raised its forecast for the year, projecting that its diluted earnings per share (EPS) will be between $6.84 and $7.04 (its previous forecast was $6.24 to $6.44). That's a substantial improvement from 2025, when its diluted EPS was just $1.39, as goodwill impairment charges weighed on its results. And the year before that, EPS was higher at $3.66, but restructuring charges affected its numbers back then.

Now, with seemingly less noise in its financial statements and more growth, CVS Health looks poised to deliver much stronger financials this year. Its latest earnings numbers are set to come out next week, on Nov. 4.

Unsurprisingly, amid the more improved numbers, shares of CVS Health are up around 17% this year, which is a far better performance than the S&P 500, as the broad index has risen at a more modest rate of 12% thus far in 2026.

$92.34-$1.13 (-1.21%)

NYSE · As of 3:54 PM ET 10/26/26

Why CVS Health stock could still rise higherCVS has been performing well this year, but the stock itself isn't expensive. It's currently trading at a forward price-to-earnings multiple of 11, which is based on analyst expectations. That's far lower than the S&P 500 average of 19. Not only could it get back to over $100 in the near future, but it could also soar past that level given its improved results and modest valuation.

In addition, the stock also yields 2.9%, as it can provide investors with some excellent recurring income.

For investors seeking a top healthcare stock to own to diversify their portfolios with, or just wanting an above-average dividend stock that they won't have to worry about, CVS can be an excellent option to consider. The business looks solid, and given the growth it's been generating, the stock looks incredibly well priced, making it a terrific buy right now.

, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the third quarter ended September 30, 2026.

KEY HIGHLIGHTS

Operating results                                        

3Q26

3Q25

YTD 3Q26

YTD 3Q25

Net loss attributable to Alexandria's common stockholders – diluted:

 In millions

$      (638.5)

(1)

$      (234.9)

$      (351.4)

$      (356.1)

 Per share

$        (3.74)

$        (1.38)

$        (2.06)

$        (2.09)

Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted:

 In millions

$       264.4

$       377.8

$       856.5

$    1,166.3

 Per share

$         1.54

$         2.22

$         5.00

$         6.85

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

Alexandria Real Estate Equities, Inc. All Rights Reserved. ©2026

(1)

Includes $637.9 million of real estate impairment charges related to assets held for sale for 3Q26. Refer to
"Funds from operations and funds from operations per share" in the Earnings Press Release for details.

A best-in-class REIT with a high-quality and diverse tenant base, strong margins, and long lease terms

(As of or for the three months ended September 30, 2026, unless stated otherwise)

Occupancy of operating properties

87.1 %

Occupancy of operating properties, including executed leases with future occupancy

90.8 %

Percentage of annual rental revenue in effect from Megacampus platform

80 %

Percentage of annual rental revenue in effect from investment-grade or publicly
    traded large cap tenants

57 %

Operating margin

66 %

Adjusted EBITDA margin

65 %

Percentage of leases containing annual rent escalations

97 %

Weighted-average remaining lease term:

 All tenants

7.7

years

 Top 20 tenants

10.0

years

Strong 3Q26 tenant collections:

 3Q26 rents and receivables collected as of October 26, 2026

99.9 %

Strong and flexible balance sheet with significant liquidity; top 20% credit rating ranking among all publicly traded U.S. REITs; long-duration remaining debt term (as of 9/30/26)

$21.01 billion in total market capitalization and $8.11 billion in total equity capitalization.Net debt and preferred stock to Adjusted EBITDA:4Q26 annualized target: 5.6x–6.2x.3Q26 annualized: 6.9x; 6.6x on a pro forma basis reflecting the October 2026 closing of the sale of our partial interest in the Campus Point by Alexandria joint venture.Significant liquidity of $4.56 billion and closed extension of our $5.0 billion unsecured senior line of credit to 2032.Only 6% of our total debt matures through 2028.11.6-year weighted-average remaining debt term, the longest among S&P 500 REITs.Total debt and preferred stock, as adjusted, to gross assets of 30%.Intermediate-term goal for leverage: mid-5x range.Solid 3Q26 total leasing volume exceeding 1.2 million RSF; highest total quarterly volume since 4Q24

3Q26 total leasing volume surpassed 1.2 million RSF, exceeding the 1Q25–2Q26 quarterly average of 979,822 RSF by approximately 256,000 RSF, and representing the highest quarterly volume since 4Q24.Includes 450,961 RSF of leasing of previously vacant space, the second-highest quarterly amount in company history.74% of our leasing activity during the last twelve months was generated from our existing tenant base.

Leasing Volume in RSF:

3Q26

2Q26

1Q26

YTD 3Q26

 Leasing of previously vacant space

450,961

329,148

148,734

928,843

 Leasing of development and
     redevelopment space

—

68,771

117,935

186,706

450,961

397,919

266,669

1,115,549

 Lease renewals and re-leasing of space

785,069

640,998

380,687

1,806,754

Total leasing volume

1,236,030

1,038,917

647,356

2,922,303

Lease renewals and re-leasing of space:

 Rental rate changes

(2.4) %

(0.7) %

(15.0) %

(5.1) %

 Rental rate changes (cash basis)

(3.3) %

(4.3) %

(15.8) %

(6.9) %

Ongoing execution of Alexandria's capital recycling strategy

We plan to continue funding a significant portion of our capital requirements for the year ending December 31, 2026 through dispositions of land, non-core dispositions, and sales of partial interests. In October 2026, we completed the sale of an approximately 29% noncontrolling interest in Campus Point by Alexandria Megacampus for $475.0 million to a new joint venture partner.

Sources of capital: transactions

Sales Price

(dollars in millions)

Non-core and land dispositions

$       242

Sales of partial interests

475

Completed as of October 26, 2026

717

Pending transactions subject to:

 Non-refundable deposits

355

 Signed letters of intent and/or purchase and sale agreement late-stage negotiations          

1,548

2,620

Proceeds from dispositions and sales of partial interests in excess of 2026 guidance
    midpoint which may be deferred into 2027

(720)

2026 guidance midpoint for dispositions and sales of partial interests

$     1,900

Refer to "Definitions and reconciliations" in the Supplemental Information. 

Occupancy of operating properties and leasing progress

Occupancy of operating properties as of June 30, 2026

86.9 %

Key changes to occupancy of operating properties:

 Reclassification of 339,020 RSF at 311 Arsenal Street from redevelopment to
   operating in 3Q26, including 167,543 RSF of executed leases and leases under
   negotiation for space not yet delivered

(0.9)

(1)

 Reclassification of held-for-sale properties with vacancy

0.6

 Net increase in occupancy primarily due to lease commencements during 3Q26

0.5

Occupancy of operating properties as of September 30, 2026

87.1

 Vacant operating space with executed leases and future occupancy

3.7

(2)

Occupancy of operating properties as of September 30, 2026, including executed                      
  leases with future occupancy

90.8 %

(1)

Refer to "Resolution of certain construction projects under evaluation and reduction of capital spend and funding needs" in this Earnings Press Release for additional details.

(2)

Represents executed leases aggregating 1.3 million RSF within our operating portfolio, with occupancy expected upon completion of building and/or tenant improvements. The weighted-average expected occupancy date is approximately June 2027, with expected annual rental revenue of approximately $52 million. We expect 32% of the total 1.3 million RSF to be occupied by December 31, 2026. The RSF presented excludes 686 thousand RSF of pre-leased space related to development and redevelopment projects under construction with future delivery. Refer to "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details.

KEY OPERATING METRICS

Operating metrics

3Q26

YTD 3Q26

Same property performance:

 Net operating income changes

(6.7) %

(1)

(9.2) %

(1)

 Net operating income changes (cash basis)

(2.8) %

(1)

(8.4) %

(1)

 Occupancy – current-period average

88.1 %

88.6 %

 Occupancy – same-period prior-year average

91.7 %

92.8 %

Refer to "Same property comparisons" and "Net operating income" under "Definitions and reconciliations" in the Supplemental Information for additional details and their respective reconciliations from the most directly comparable financial measures presented in accordance with GAAP.

(1)

The decline was due to a decrease in same property occupancy, primarily driven by previously disclosed key lease expirations with expected downtime aggregating 282,878 RSF and 1.2 million RSF in 3Q26 and YTD 3Q26, respectively, with weighted-average lease expiration dates of August 2026 and April 2026, respectively.

Resolution of certain construction projects under evaluation and reduction of capital spend and funding needs

We entered into a purchase and sale agreement with an institutional user for the sale of 421 Park Drive on the Alexandria Center® for Life Science – Fenway Megacampus, aggregating 339,668 RSF, which represents substantially all of our development project at this location. The disposition is expected to generate significant sales proceeds and to reduce future potential construction spend by approximately $136 million, with closing anticipated in 4Q26.We have executed leases of 66,859 RSF and have additional leases under negotiation of 100,684 RSF for advanced technology use at our project at 311 Arsenal Street on The Arsenal on the Charles Megacampus. This activity enables us to pivot the redevelopment project to a lower-cost advanced technology use, reducing future potential construction spend by approximately $220 million. As a result of this leasing progress, the entire project aggregating 339,020 RSF was reclassified from redevelopment to operating as of 3Q26.We continue to evaluate the business and financial strategy for three remaining projects aggregating 667,002 RSF, including options that could further reduce future construction funding requirements.Non-income-producing assets for 3Q26 are 12% of gross assets, a reduction of 800 bps since 4Q24.Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $40 million during 3Q26, with an additional $85 million expected from projects to be delivered by 4Q28

During 3Q26, we placed into service 529,061 RSF of development and redevelopment projects across multiple submarkets. The projects were 84% occupied at delivery and generated incremental annual net operating income aggregating $40 million. 3Q26 key deliveries included:198,992 RSF to Novo Nordisk for its R&D Center at 60 Sylvan Road on the Alexandria Center® for Life Science – Waltham Megacampus.174,662 RSF at 99 Coolidge Avenue located on a Megacampus in Watertown.Annual net operating income (cash basis) from recently delivered projects is expected to increase by $67 million upon the burn-off of initial free rent, which has a weighted-average remaining period of approximately four months.80% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.

Development and Redevelopment
Projects

Incremental

Annual Net
Operating
Income

RSF

Occupied/
Leased/
Negotiating

Percentage

(dollars in millions)

Placed into service:

  1H26

$                58

532,219

91 %

  3Q26

40

529,061

84

Placed into service in YTD 3Q26

$                98

(1)

1,061,280

87 %

Expected to be placed into service:(2)

2027

$                24

905,582

77 %

2028

61

$                85

(1)

Excludes future incremental annual net operating income from spaces placed into service that were vacant and/or unleased at delivery.

(2)

Excludes 667,002 RSF of redevelopment projects currently under evaluation.

Continued successful management of general and administrative expenses

For the trailing twelve months ended September 30, 2026, our general and administrative expenses represented 7.5% of net operating income, nearly half the average of other S&P 500 REITs for 2023–2025.Compared to 2024, we continue to expect approximately $76 million of cumulative general and administrative expense savings for the two-year period 2025 and 2026 (based on the midpoint of our 2026 guidance range). Some of the cost savings in 2025 were temporary, and approximately half of the cost reductions achieved in 2025 are expected to continue in 2026 (based on the midpoint of our 2026 guidance range).Key capital events

In August 2026, we completed a public offering of $1.00 billion aggregate principal amount of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057. The notes will initially bear interest at 7.250% per year through, but excluding, February 15, 2032. Thereafter, the interest rate will reset every five years to the five-year U.S. Treasury rate plus 2.889%, subject to a minimum interest rate of 7.250%. We may elect to defer interest payments for up to five consecutive years, subject to the terms of the notes, including certain restrictions on paying dividends and repurchasing equity. We may also redeem at 100% of principal plus accrued and unpaid interest during the period beginning November 17, 2031 and ending on February 15, 2032, and thereafter on any interest payment date. This issuance supports our liquidity, capital structure, and deleveraging objectives while receiving 50% equity treatment from key rating agencies for purposes of the computations of leverage, fixed charges, and other credit metrics.In September 2026, we closed our amended and restated $5.0 billion unsecured senior line of credit which, among other changes, extended the maturity date from January 22, 2030 to January 22, 2032, including extension options that we control. The amendment also reduced the applicable borrowing rate to SOFR plus 0.725% from SOFR plus 0.835%. In connection with the amendment, we recognized a loss on early extinguishment of debt of approximately $3.3 million related to the partial write-off of unamortized loan fees.Under our common stock repurchase program authorized in December 2025, we may repurchase up to $500.0 million of our common stock through December 31, 2026. As of September 30, 2026, no shares have been repurchased under this program and $500.0 million remains available for future share repurchases.Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment

Common stock dividend declared of $0.72 per share for 3Q26, consistent with the preceding quarter. The declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, supporting liquidity, and sharing cash flows with our stockholders.Significant net cash provided by operating activities, as adjusted, retained for reinvestment aggregating $2.55 billion for the years ended December 31, 2022 through 2025 and the midpoint of our 2026 guidance range.Dividend yield of 6.1% as of September 30, 2026 and dividend payout ratio of 47% for the three months ended September 30, 2026.Investments

As of September 30, 2026:Our non-real estate investments aggregated $1.74 billion.Unrealized gains presented in our consolidated balance sheet were $243.9 million, comprising gross unrealized gains and losses aggregating $322.4 million and $78.5 million, respectively.Investment income of $24.0 million for 3Q26, presented in our consolidated statement of operations, consisted of $16.0 million of realized gains, $21.6 million of unrealized gains, and $13.6 million of impairment charges.2026 Guidance
September 30, 2026
(Dollars in millions, except per share amounts)

Guidance for 2026 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2026. There can be no assurance that actual results will not be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties. Refer to our discussion of "forward-looking statements" in this Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

Projected 2026 Funds From Operations per Share Attributable to Alexandria's Common Stockholders – Diluted

As of 10/26/26

As of 8/3/26

Key Changes

Funds from operations per share, as adjusted(1)

$6.38 to $6.42

$6.35 to $6.45

No change to the midpoint,

range narrowed by 6 cents

Midpoint

$6.40

$6.40

Key Credit Metrics Targets                                                                                                                                                

As of 10/26/26

As of 8/3/26

Key Changes

Net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized

5.6x to 6.2x

5.6x to 6.2x

No Change

Fixed-charge coverage ratio – 4Q26 annualized

3.4x to 3.9x

3.6x to 4.1x

0.2x reduction(2)

As of 10/26/26

As of 8/3/26
Midpoint

Key Sources and Uses of Capital

Range

Midpoint

Certain
Completed Items

Sources of capital:

 Net cash provided by operating activities, as adjusted

$        475

$        575

$        525

$           525

 Dispositions and sales of partial interests

1,100

2,700

1,900

(3)

2,900

Total sources of capital

$     1,575

$     3,275

$     2,425

$        3,425

Uses of capital:

 Construction(4)

$     1,500

$     2,000

$     1,750

$        1,750

 Reduction in unsecured debt

75

1,275

675

See below

1,675

Total uses of capital

$     1,575

$     3,275

$     2,425

$        3,425

Reduction in unsecured debt (included above):

 Repayment of unsecured senior notes payable with 2026 maturities

$        650

$        650

$        650

$

650

$           650

 Tender offers for partial principal repayments of unsecured senior notes payable

952

952

952

$

952

952

 Issuance of unsecured senior notes payable

(750)

(750)

(750)

$

(750)

(750)

 Issuance of junior subordinated notes payable(3)

(1,000)

(1,000)

(1,000)

$

(1,000)

—

Unsecured senior line of credit, commercial paper, and other

223

1,423

823

823

Reduction in unsecured debt

$          75

$     1,275

$        675

$        1,675

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details on key credit metrics.

(1)

Refer to "Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.'s common stockholders" under "Definitions and reconciliations" in the Supplemental Information for additional details.

(2)

Reduction primarily reflects the $1.00 billion issuance of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057, as further discussed in footnote 3 below.

(3)

In August 2026, we issued $1.00 billion of 7.250% Series A fixed-to-fixed reset rate junior subordinated notes due 2057, allowing us to reduce the midpoint of our 2026 dispositions and sales of partial interests guidance by $1.0 billion. The proceeds from this issuance support our capital structure and deleveraging objectives, and the notes receive 50% equity treatment from key rating agencies for the computation of key credit metrics. Refer to the Earnings Press Release in the Supplemental Information for additional details. We do not anticipate the issuance of any common equity during 2026. As of October 26, 2026, completed dispositions and sales of partial interests aggregated $716.8 million, our share of pending dispositions and sales of partial interests subject to non-refundable deposits aggregated $355.4 million and signed letters of intent and/or purchase and sale agreement late-stage negotiations aggregated $1.55 billion. These transactions aggregate approximately $2.62 billion, exceeding the $1.90 billion midpoint of our 2026 guidance and potentially providing advanced funding of our 2027 capital needs, whereby certain dispositions and sales of partial interests may be completed in 2026 with proceeds deferred or available to be drawn in 2027, subject to timing and market conditions.

(4)

We continue to apply a disciplined approach to reduce construction spending for 2027 and seek to prioritize leased projects with high incremental returns. We expect 2027 construction spending to primarily focus on: (i) revenue- and non-revenue-enhancing capital expenditures, which are expected to represent the majority of spend, approximately half of which is associated with space that is already leased or under lease negotiations, in order to support the leasing of vacant space and renewals and re-leasing of space at our operating properties and (ii) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 77% leased/negotiating.

As of 10/26/26

As of 8/3/26

Key Changes

to Midpoint

Key Assumptions

Low

High

Low

High

Occupancy of operating properties as of December 31, 2026

86.2 %

87.8 %

86.2 %

87.8 %

No Change

Same property performance:

Net operating income changes

(10.5) %

(8.5) %

(10.5) %

(8.5) %

Net operating income changes (cash basis)

(10.5) %

(8.5) %

(10.5) %

(8.5) %

Lease renewals and re-leasing of space:

Rental rate changes

(9.0) %

(1.0) %

(9.0) %

(1.0) %

Rental rate changes (cash basis)

(15.0) %

(7.0) %

(15.0) %

(7.0) %

Straight-line rent revenue

$           40

$           70

$           45

$          75

$5 million reduction(1)

General and administrative expenses

$         134

$         154

$         134

$        154

No Change

Capitalization of interest

$         220

$         260

$         220

$        260

Interest expense

$         260

$         300

$         260

$        300

No Change(2)

Realized gains on non-real estate investments(3)

$           50

$           80

$           60

$          90

$10 million reduction(3)

(1)

Reduction driven primarily by write-offs and reserves of deferred rent related to tenant wind-downs. Our 2026 guidance assumes a $30 million to $35 million reduction in funds from operations related to potential tenant wind-downs, of which approximately $30 million was recognized YTD through 3Q26, including approximately $16 million recognized in 3Q26.

(2)

We expect 2026 interest expense to be near the high-end of the range, reflecting, in part, interest expense associated with the $1.0 billion issuance of junior subordinated notes in August 2026.

(3)

Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant gains and impairments realized on non-real estate investments, if any. The midpoint of our revised guidance range for 2026 realized gains on non-real estate investments was reduced by $10 million, primarily due to certain transactions previously expected to close in 2026 that are now expected to close in 2027. Refer to "Investments" in the Supplemental Information for additional details.

Summary of key items that may impact 2026 and 2027 results

1)   Potential tenant wind-downs

Our 2026 guidance includes a $30 million to $35 million reduction in funds from operations for potential tenant wind-downs, of which approximately $30 million was recognized during the nine months ended September 30, 2026, including approximately $16 million recognized in 3Q26.Based upon current market conditions, we preliminarily estimate at least a similar level of reduction in funds from operations may be necessary in 2027.Depending on the timing and magnitude of the specific tenant wind-downs, we anticipate that 2027 occupancy may also be negatively impacted.2)   Development-related other income

During the nine months ended September 30, 2026, we recognized development fees and other related revenues of approximately $8.0 million, or $11 million annualized, most of which are expected to cease by the end of 2026 as we complete the respective projects.3)   Development and redevelopment projects under business and financial strategy evaluation

We have three redevelopment projects for which the business and financial strategies continue to be evaluated, including whether to continue construction of laboratory improvements, pause construction, pursue lower-investment construction alternatives (including a pivot to advanced technology use), or pursue a disposition. Refer to "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details.If we elect to continue to pursue construction of laboratory improvements for these projects, the earliest deliveries of these projects are in 2028.If we elect to pursue lower-investment construction alternatives (including a pivot to advanced technology use), we expect these projects would have lower rental rates and stabilized yields compared to our initial underwriting. The incremental capital required for alternative-use construction and corresponding rental rates earned are generally lower than those associated with laboratory improvements.As of 3Q26, we have executed leases for 66,859 RSF and have additional leases under negotiation for 100,684 RSF for advanced technology use at our project at 311 Arsenal Street in The Arsenal on the Charles Megacampus. This activity enables us to pivot the redevelopment project to a lower-cost alternative use at lower rental rates and stabilized yields than our initial underwriting. Therefore, we placed this project, aggregating 339,020 RSF, into operation during 3Q26 and included it in our operating occupancy as of September 30, 2026. Refer to the Earnings Press Release and "Leasing Activity" in the Supplemental Information for additional details.In addition, we entered into a purchase and sale agreement with an institutional user for the sale of our development project at 421 Park Drive on the Alexandria Center® for Life Science – Fenway Megacampus aggregating 339,668 RSF. The disposition is expected to close in 4Q26, resulting in significant sales proceeds and reducing future construction spending by approximately $136 million.4)   Capitalization of interest

Our average real estate basis capitalized during 3Q26 was $5.87 billion. As of September 30, 2026, our real estate basis that continued to qualify for capitalization declined to $4.46 billion, primarily driven by the cessation of capitalization on our projects at 421 Park Drive on the Alexandria Center® for Life Science – Fenway Megacampus and Alexandria Stanford Life Science District, both of which were classified as held for sale as of September 30, 2026, as well as a delivered project at Alexandria Center® for Life Science – Waltham Megacampus in September 2026. During 4Q26, we expect the average real estate basis capitalized to range from $3.4 billion to $4.9 billion. Refer to "Capitalization of interest" in the Supplemental Information for additional detail.At each milestone date, we evaluate, on an asset-by-asset basis, whether to (i) proceed with additional pre-construction and/or construction activities based on leasing demand and/or market conditions, (ii) pause future investments, or (iii) consider potential dispositions or sales of partial interests of these real estate assets. If we cease the activities necessary to prepare a project for its intended use, costs related to such project, including interest, payroll, property taxes, insurance, and other costs directly related and essential to the construction of Class A/A+ properties, are expensed as incurred. During 3Q26, annualized capitalized operating expenses represented approximately 2% of the total average real estate basis subject to capitalization.5)   2027 Key lease expirations

We estimate that 1.4 million RSF of leases expiring in 2027, with approximately $100.5 million of annual rental revenue, will have downtime after lease expiration. These 2027 expirations have a weighted-average contractual lease expiration date in March 2027 and an expected weighted-average downtime ranging from 9 to 24 months. Refer to "Contractual lease expirations" in the Supplemental Information for additional details.2027 Key Lease Expirations

RSF

Annual Rental
Revenue

Weighted-Average
Expiration Date

Weighted-Average
Downtime

1,377,960

$100.5 million

March 2027

9 to 24 months

We expect to introduce 2027 guidance and related key assumptions, and 2027 key sources and uses of capital at our Investor Day on December 2, 2026, consistent with our historical practice.

Summary of key items that may impact 2027 and 2028 results

The following key considerations for 2027 and 2028 reflect our preliminary expectations based on current market conditions. These expectations could change materially and are subject to a variety of factors, including industry, governmental, geopolitical, and macroeconomic conditions, including changes in interest rates, as well as other factors described in our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

1)   Operating occupancy

For the year ending December 31, 2027, we expect average operating occupancy to temporarily decline relative to our projected operating occupancy as of December 31, 2026, primarily due to expected downtime associated with the 1.4 million RSF of 2027 key lease expirations disclosed in "Contractual lease expirations" in the Supplemental Information, as well as the potential for tenant wind-downs.For the year ending December 31, 2028, we expect average operating occupancy to improve relative to our projected average operating occupancy for the year ending December 31, 2027, driven by the lease-up of temporary vacancy partially offset by approximately 718 thousand RSF of 2028 key lease expirations with expected downtime as disclosed in "Contractual lease expirations" in the Supplemental Information.2)   Same property performance

For the year ending December 31, 2027, we expect same property net operating income performance to improve compared with the midpoint of our guidance range for 2026 but remain negative, primarily due to the expected temporary year-over-year decline in average operating occupancy, including the impact of expected downtime associated with 1.4 million RSF of 2027 key lease expirations.For the year ending December 31, 2028, we expect same property net operating income performance to improve compared with 2027, primarily driven by operating occupancy growth and the lease-up of vacant space, subject to leasing and market conditions.3)   Construction spending

For 2027, we continue to apply a disciplined approach to reduce construction spending and we seek to prioritize leased projects with high incremental returns. We expect 2027 construction spending to primarily focus on (i) revenue- and non-revenue-enhancing capital expenditures, which are expected to represent the majority of spend, approximately half of which is associated with space that is leased or under lease negotiations, in order to support the leasing of vacant space and renewals and re-leasing of space at our operating properties and (ii) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 77% leased/negotiating as of October 26, 2026.For 2028, we expect a further decline in construction spending relative to 2027, primarily driven by lower development and redevelopment spending. Construction spending on revenue- and non-revenue-enhancing capital expenditures related to our operating portfolio is expected to continue to support the lease-up of temporary vacancy, subject to leasing and market conditions.4)   Transactional and other capital sources

For 2027, capital will be required to fund construction spending as we continue to prudently manage our key credit metrics, including net debt and preferred stock to Adjusted EBITDA ratio. In general, we expect to rely on asset recycling transactions, and other sources of cost-effective capital to support the achievement of our 2027 key credit metric ratio targets, including net debt and preferred stock to Adjusted EBITDA.For 2028, if we have growth in Adjusted EBITDA, we may use incremental long-term debt to fund a portion of our capital needs on a leverage neutral basis. In addition, we may use asset recycling and other sources of cost-effective capital to support the achievement of our 2028 key credit metric ratio targets, including net debt and preferred stock to Adjusted EBITDA.Dispositions and Sales of Partial Interests
September 30, 2026
(Dollars in thousands)

Date of
Transaction

Interest
Sold

Square Footage

Price

(Our Share)

Property

Submarket/Market

Operating

Future
Development

Completed in 1H26

$         7,350

Non-core and land dispositions completed in 3Q26:

 3825 and 3875 Fabian Way(1)

Palo Alto/San Francisco Bay Area

7/14/26

100 %

228,000

250,000

163,000

 One Hampshire Street(2)

Cambridge/Greater Boston

8/21/26

100 %

104,956

—

44,900

 3911, 3931, 4025, 4031, 4045, and 4075 Sorrento Valley Boulevard(3)

Sorrento Valley/San Diego

9/23/26

100 %

95,814

144,000

26,500

Dispositions completed in 3Q26

234,400

(4)

Total dispositions completed in YTD 3Q26

241,750

Completed in October 2026:

 Sales of partial interests:

 Campus Point by Alexandria(5)

University Town Center/San Diego

10/23/26

(5)

1,586,697

366,816

475,000

Total completed 2026 dispositions and sales of partial interests as of October 26, 2026

716,750

Our share of pending dispositions and sales of partial interests subject to:

 Non-refundable deposits

355,400

 Signed letters of intent and/or purchase and sale agreement late-stage negotiations

1,547,850

2,620,000

Proceeds from dispositions and sales of partial interests in excess of 2026 guidance
    midpoint which may be deferred into 2027(6)

(720,000)

2026 guidance midpoint for dispositions and sales of partial interests

$     1,900,000

2026 guidance range for dispositions and sales of partial interests

$1,100,000 – $2,700,000

Weighted-average projected completion date of 2026 dispositions and sales of partial interests

November 2026

(7)

(1)

Represents one future development project aggregating 250,000 SF at 3825 Fabian Way and one fully leased operating building aggregating 228,000 RSF at 3875 Fabian Way in our Palo Alto submarket. These assets were acquired in 2019 with the intent to develop them for life science use. However, due to the project's macroeconomic outlook, the assets no longer aligned with our strategy and were sold to a residential developer.

(2)

Represents one vacant office property that was originally acquired with the intent to redevelop for life science use and expand our Megacampus ecosystem. The asset was sold due to the macroeconomic outlook for the project and the significant capital required to redevelop and lease the property.

(3)

Represents five operating properties, primarily comprising non-laboratory space, and one land parcel. As of 2Q26, these operating properties were 30% occupied with a weighted-average lease term of 2.4 years, and were sold due to the significant capital that would have been required to convert these properties through redevelopment for laboratory use and their misalignment with our Megacampus strategy.

(4)

Our share of dispositions completed during the three months ended September 30, 2026 had annual net operating income of $4.4 million (based on 2Q26 annualized results) with a weighted-average disposition date of July 29, 2026.

(5)

In October 2026, we completed the sale of an approximately 29% noncontrolling interest in the Campus Point by Alexandria Megacampus for $475.0 million. We expect our new partner's initial share of the annual distributions to approximate 5.5% of its $475.0 million capital contribution. Upon completion of the sale, our ownership interest decreased from 59% as of September 30, 2026 to approximately 30%. We expect to fund the majority of future construction costs at the Megacampus, which is expected to reduce the ownership interests of our new joint venture partner and existing joint venture partner over time to below 20% and 30%, respectively, and increase our ownership interest to over 50%. We retained control and therefore continue to consolidate the properties held by the real estate joint venture. Accordingly, we accounted for the $44.2 million difference between the consideration received and the book value of our interest sold as an increase to additional paid-in capital, with no gain recognized in earnings.

(6)

Refer to "Key Sources and Uses of Capital" under "2026 Guidance" in the Earnings Press Release for additional details.

(7)

Including the impact of the $1.0 billion junior subordinated notes issued during 3Q26, the weighted-average projected completion date of these sources of capital is expected to be October 2026.

Earnings Call Information and About the Company
September 30, 2026

We will host a conference call on Tuesday, October 27, 2026, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the third quarter ended September 30, 2026. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, October 27, 2026, through 4:00 p.m. ET on Tuesday, November 3, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 6457127.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the third quarter ended September 30, 2026 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2026q3.pdf. 

For any questions, please contact [email protected]; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus ecosystems in AAA life science and advanced technology innovation cluster locations, including Greater Boston, San Diego, the San Francisco Bay Area, Seattle, Maryland, Research Triangle, and New York City. As of September 30, 2026, Alexandria has a total market capitalization of $21.01 billion and an asset base that includes 36.5 million RSF of operating properties and 1.9 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Forward-Looking Statements

This document includes "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. Such forward-looking statements include, without limitation, statements regarding our projected 2026 funds from operations per share, projected 2026 funds from operations per share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," or the negative of those words or similar words. These forward-looking statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, our failure to complete planned dispositions and sales of partial interests on anticipated terms or timing, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.

This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That's What's in Our DNA®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center®, Alexandria Technology Square®, Alexandria Technology Center®, and Alexandria Innovation Center® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.

Consolidated Statements of Operations
September 30, 2026
(Dollars in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

Revenues:

 Income from rentals

$    653,618

$    643,210

$    653,013

$     728,872

$    735,849

$  1,949,841

$  2,216,303

 Other income

17,564

19,574

18,009

25,542

16,095

55,147

55,839

Total revenues

671,182

662,784

671,022

754,414

751,944

2,004,988

2,272,142

Expenses:

 Rental operations

227,931

207,336

224,142

232,543

239,234

659,409

690,062

 General and administrative

40,915

36,861

34,685

28,020

29,224

112,461

89,027

 Interest

79,687

64,342

64,584

65,674

54,852

208,613

161,024

 Depreciation and amortization

304,419

304,384

305,441

322,063

340,230

914,244

1,028,415

 Impairment of real estate

637,904

(1)

222,470

5,499

1,717,188

323,870

865,873

485,630

Total expenses

1,290,856

835,393

634,351

2,365,488

987,410

2,760,600

2,454,158

Equity in earnings (losses) of unconsolidated real estate joint ventures

75

413

(147)

(304)

201

341

(9,327)

Investment income (losses)

23,990

133,227

(4,582)

(3,890)

28,161

152,635

(52,453)

(Loss) gain on early extinguishment of debt

(3,323)

—

366,435

—

(107)

363,112

(107)

Gain on sales of real estate

—

—

—

619,914

9,366

—

22,531

Net (loss) income

(598,932)

(38,969)

398,377

(995,354)

(197,845)

(239,524)

(221,372)

Net income attributable to noncontrolling interests

(38,754)

(33,814)

(36,724)

(85,521)

(34,909)

(109,292)

(127,323)

Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s
    stockholders

(637,686)

(72,783)

361,653

(1,080,875)

(232,754)

(348,816)

(348,695)

Net income attributable to unvested restricted stock awards

(766)

(908)

(2,779)

(965)

(2,183)

(2,603)

(7,452)

Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s
    common stockholders

$   (638,452)

$    (73,691)

$    358,874

$ (1,081,840)

$   (234,937)

$   (351,419)

$   (356,147)

Net (loss) income per share attributable to Alexandria Real Estate Equities,
    Inc.'s common stockholders:

 Basic

$         (3.74)

$        (0.43)

$          2.10

$          (6.35)

$         (1.38)

$         (2.06)

$         (2.09)

 Diluted

$         (3.74)

$        (0.43)

$          2.10

$          (6.35)

$         (1.38)

$         (2.06)

$         (2.09)

Weighted-average shares of common stock outstanding:

 Basic

170,751

170,718

170,598

170,394

170,181

170,689

170,278

 Diluted

170,751

170,718

170,867

170,394

170,181

170,689

170,278

Dividends declared per share of common stock

$          0.72

$          0.72

$          0.72

$           0.72

$          1.32

$           2.16

$          3.96

(1)  Refer to "Funds from operations and funds from operations per share" in the Earnings Press Release for additional details regarding impairment of real estate.

Consolidated Balance Sheets
September 30, 2026
(In thousands)

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

Assets

Investments in real estate

$ 28,426,999

$ 29,125,895

$ 28,830,116

$ 28,689,996

$ 31,743,917

Investments in unconsolidated real estate joint ventures

28,580

28,910

30,520

30,677

39,601

Cash and cash equivalents

508,855

470,449

418,720

549,062

579,474

Restricted cash

4,908

4,690

4,665

4,693

4,705

Tenant receivables

6,168

7,661

7,362

6,672

6,409

Deferred rent

1,210,911

1,209,722

1,200,047

1,179,403

1,257,378

Deferred leasing costs

452,164

453,761

456,405

458,311

505,241

Investments

1,735,673

1,685,695

1,536,419

1,501,249

1,537,638

Other assets

1,677,464

1,645,443

1,683,143

1,661,772

1,700,785

Total assets

$ 34,051,722

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

Liabilities, Noncontrolling Interests, and Equity

Unsecured senior notes payable

$ 10,820,687

$ 10,818,366

$ 11,166,009

$ 12,047,394

$ 12,044,999

Junior subordinated notes payable

985,143

—

—

—

—

Unsecured senior line of credit and commercial paper

1,091,166

1,994,508

1,353,986

353,161

1,548,542

Accounts payable, accrued expenses, and other liabilities

2,604,418

2,513,526

2,154,782

2,397,073

2,432,726

Dividends payable

131,999

130,468

128,880

127,771

230,603

Total liabilities

15,633,413

15,456,868

14,803,657

14,925,399

16,256,870

Commitments and contingencies

Redeemable noncontrolling interests

9,119

9,119

9,234

58,788

58,662

Alexandria Real Estate Equities, Inc.'s stockholders' equity:

 Common stock

1,708

1,707

1,707

1,705

1,703

 Additional paid-in capital

14,839,182

15,585,296

15,763,321

15,497,760

16,669,802

 Accumulated other comprehensive loss

(33,691)

(33,027)

(30,936)

(29,395)

(32,203)

Alexandria Real Estate Equities, Inc.'s stockholders' equity

14,807,199

15,553,976

15,734,092

15,470,070

16,639,302

Noncontrolling interests

3,601,991

3,612,263

3,620,414

3,627,578

4,420,314

Total equity

18,409,190

19,166,239

19,354,506

19,097,648

21,059,616

Total liabilities, noncontrolling interests, and equity

$ 34,051,722

$ 34,632,226

$ 34,167,397

$ 34,081,835

$ 37,375,148

Funds From Operations and Funds From Operations per Share
September 30, 2026
(In thousands)

The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S.
generally accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's
common stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

Net (loss) income attributable to Alexandria's common stockholders – basic and diluted

$  (638,452)

$  (73,691)

$  358,874

$(1,081,840)

$ (234,937)

$  (351,419)

$ (356,147)

 Depreciation and amortization of real estate assets

302,240

302,238

303,296

319,865

338,182

907,774

1,021,292

 Noncontrolling share of depreciation and amortization from consolidated real estate JVs

(32,458)

(31,518)

(29,473)

(39,942)

(45,327)

(93,449)

(114,785)

 Our share of depreciation and amortization from unconsolidated real estate JVs

858

805

914

855

852

2,577

2,848

 Gain on sales of real estate

—

—

—

(307,132)

(9,824)

—

(22,989)

 Impairment of real estate – rental properties and land

637,904

(1)

222,470

5,499

1,439,303

323,870

865,873

454,960

 Allocation to unvested restricted stock awards

(1,042)

(2,201)

(2,181)

(1,903)

(1,648)

(7,141)

(3,590)

Funds from operations attributable to Alexandria's common stockholders – diluted(2)

269,050

418,103

636,929

329,206

371,168

1,324,215

981,589

 Unrealized (gains) losses on non-real estate investments

(21,563)

(131,933)

10,332

(98,548)

(18,515)

(143,164)

71,568

 Significant realized losses on non-real estate investments

—

—

—

103,329

—

—

—

 Impairment of non-real estate investments

13,580

(3)

8,998

12,448

20,181

25,139

35,026

75,535

 Impairment of real estate

—

—

—

12,619

—

—

39,343

 Loss (gain) on early extinguishment of debt

3,323

—

(366,435)

—

107

(363,112)

107

 Acceleration of stock compensation expense due to executive officer resignation

—

—

—

2,455

—

—

—

 (Decrease) increase in provision for expected credit losses on financial instruments

—

—

—

(341)

—

—

285

 Allocation to unvested restricted stock awards

33

909

2,674

(363)

(74)

3,496

(2,156)

Funds from operations attributable to Alexandria's common stockholders – diluted, as
    adjusted

$   264,423

$  296,077

$  295,948

$  368,538

$  377,825

$   856,461

$ 1,166,271

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

(1)

Primarily reflects impairment charges to reduce the carrying amounts of real estate assets classified as held for sale as of 3Q26 to their respective estimated fair values less costs to sell, including (i) $343.3 million related to a development project in our Fenway submarket that is expected to be sold to an institutional user which would have required significant capital to complete and lease, (ii) $135.3 million related to four non-Megacampus vacant office properties in our Palo Alto submarket that would have required significant capital investment to convert to laboratory use, (iii) $79.2 million related to six non-Megacampus operating properties in our San Carlos submarket that would have required significant capital investment to convert to laboratory use, (iv) $50.4 million related to a land parcel located outside of a Megacampus aggregating 344,000 SF in our Austin submarket, and (v) $41.6 million related to one future development project in our Palo Alto submarket that, due to the project's financial outlook, would have required significant capital to complete the development and lease the properties.

(2)

Calculated in accordance with standards established by the Nareit Board of Governors.

(3)

Primarily relates to one non-real estate investment in a privately held entity that does not report NAV.

The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding.

Three Months Ended

Nine Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

9/30/26

9/30/25

Net (loss) income per share attributable to Alexandria's common stockholders – diluted

$     (3.74)

$     (0.43)

$      2.10

$     (6.35)

$     (1.38)

$     (2.06)

$     (2.09)

 Depreciation and amortization of real estate assets

1.58

1.59

1.61

1.65

1.73

4.77

5.34

 Gain on sales of real estate

—

—

—

(1.80)

(0.06)

—

(0.14)

 Impairment of real estate – rental properties and land

3.74

1.30

0.03

8.45

1.90

5.07

2.67

 Allocation to unvested restricted stock awards

(0.01)

(0.02)

(0.01)

(0.02)

(0.01)

(0.04)

(0.02)

Funds from operations per share attributable to Alexandria's common stockholders –
    diluted

1.57

2.44

3.73

1.93

2.18

7.74

5.76

 Unrealized (gains) losses on non-real estate investments

(0.13)

(0.77)

0.06

(0.58)

(0.11)

(0.84)

0.42

 Significant realized losses on non-real estate investments

—

—

—

0.61

—

—

—

 Impairment of non-real estate investments

0.08

0.05

0.07

0.12

0.15

0.20

0.45

 Impairment of real estate

—

—

—

0.07

—

—

0.23

 Loss (gain) on early extinguishment of debt

0.02

—

(2.14)

—

—

(2.12)

—

 Acceleration of stock compensation expense due to executive officer resignation

—

—

—

0.01

—

—

—

 Allocation to unvested restricted stock awards

—

0.01

0.01

—

—

0.02

(0.01)

Funds from operations per share attributable to Alexandria's common stockholders –
    diluted, as adjusted

$      1.54

$      1.73

$      1.73

$      2.16

$      2.22

$      5.00

$      6.85

Weighted-average shares of common stock outstanding – diluted

 Earnings per share – diluted

170,751

170,718

170,867

170,394

170,181

170,689

170,278

 Funds from operations – diluted, per share

171,418

171,210

170,867

170,504

170,305

171,169

170,351

 Funds from operations – diluted, as adjusted, per share

171,418

171,210

170,867

170,504

170,305

171,169

170,351

Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.

SOURCE Alexandria Real Estate Equities, Inc.

A company that rents mops and launders uniforms has quietly outrun the S&P 500 for a decade, and most investors never gave it a second glance. Here is what the numbers reveal about how it did it and whether the…

Mats, Mops and Uniforms Built a Compounding Machine
Cintas (NASDAQ:CTAS | CTAS Price Prediction) rents and launders work uniforms. It also keeps businesses stocked with floor mats, restroom supplies, first-aid cabinets, and fire extinguishers. It serves more than one million businesses on a route-based, recurring-revenue model with high customer retention.

Most of the growth comes from converting companies that still handle these tasks themselves. Management says “over two-thirds of our new business comes from no programmers,” and it puts the addressable market at 16 to 20 million businesses.

A Decade of Singles and Doubles
For ten years, Cintas has moved past uniforms into first aid, safety, and fire protection, and it has invested in routing technology and automation. Margins expanded as a result. Gross margin hit an all-time high of 51.5%, and operating margin reached a record 23.6% in fiscal Q1 2027, the company’s first quarter with $3 billion in revenue. The company split its stock 4-for-1 in September 2024 and agreed on March 10, 2026, to buy rival UniFirst (NYSE:UNF) in an all-cash deal worth $5.2B-$5.5B. That deal still needs FTC clearance.

The dividend grew alongside the business. Cintas has raised its payout every year since going public 43 years ago, most recently by 15.6% to $0.52 per quarter.

Your $1,000 Grew to $9,427
1-Year Return

Initial Investment: $1,000
Current Value: $1,185.20
Total Return: 18.52%
S&P 500 (same period): $1,138.50 (13.85%)

5-Year Return

Initial Investment: $1,000
Current Value: $2,215.70
Total Return: 121.57%
Annualized Return: 17.25%
S&P 500 (same period): $1,687.80 (68.78%)

10-Year Return

Initial Investment: $1,000
Current Value: $9,427.40
Total Return: 842.74%
Annualized Return: 25.15%
S&P 500 (same period): $3,570.90 (257.09%)

Cintas beat the market over every period, the kind of quiet compounder most investors walked past at the time (we studied that pattern among recent winners nobody noticed, here). The Cintas figures are adjusted for splits and dividends, while the S&P 500 figures reflect price change only.

Timing counted more than usual over the past year. Shares swung between $160.31 and $225.79, and the stock rose 17.57% in the month after the September earnings report, while the S&P 500 slipped 0.4%.

I’m Waiting for a Better Entry
A $1,000 stake in Cintas today makes sense if UniFirst clears the FTC and management keeps beating its raised fiscal 2027 guidance of $5.45 to $5.54 in adjusted EPS. The company has exceeded EPS estimates for 7 consecutive quarters, and management says growth comes “from volume” rather than pricing.

I’d stay away if valuation stays this stretched. At $225.70, shares trade near 36 times forward earnings and 44 times trailing earnings, above the average analyst target of $218.31. Uniform rental also tracks employment, so a hiring slowdown would hit volumes just as the company takes on integration risk.

I like the business, but a valuation near a 52-week high leaves less room for error.

Contact [email protected] for any questions or corrections.

Key Takeaways CROX likely benefited from stronger DTC sales and reduced promotions; HEYDUDE grew despite lower marketing.CROX may have leveraged TikTok promotions and creator content to boost consumer engagement.CROX's differentiated clog franchises likely supported brand relevance and category demand. As Crocs, Inc. (CROX - Free Report) prepares to unveil its third-quarter fiscal 2026 results on Oct. 29, before market open, investors are eager to see whether the company can beat market expectations.

The Zacks Consensus Estimate for revenues is pegged at $1 billion, implying 0.9% growth from the prior year. Meanwhile, the consensus mark for earnings has been steady at $3.31 per share in the past seven days, though it indicates growth of 13.4% from the year-ago period. CROX has a trailing four-quarter earnings surprise of 13.6%, on average.

 Key Factors to Note for CROX's Q3 EarningsCrocs’ third-quarter fiscal 2026 performance is likely to have benefited from continued strength in direct-to-consumer (DTC) sales across both brands. The Crocs brand benefited from higher DTC sales alongside reduced promotional activity, while HEYDUDE also delivered growth despite lower performance marketing spending. These trends are likely to have reflected sustained consumer demand and effective brand engagement. In addition, the halo effect from social media promotions, particularly TikTok content featuring popular styles and creators, might have supported sales across marketplaces, the company’s websites and retail stores, further strengthening overall DTC momentum.

The company’s focus on strengthening global brand relevance is also likely to have remained a positive contributor. As the market leader in clogs, Crocs continues to diversify its clog portfolio through differentiated product franchises that enable better consumer segmentation and expand category relevance beyond its classic offerings. These initiatives might have supported continued consumer engagement and reinforced the company’s competitive positioning during the quarter.

Consumer engagement initiatives are likely to have provided an additional tailwind. The company’s Glad You Noticed campaign, launched in April, leveraged creative partnerships and an integrated media strategy to highlight its sandal business. The campaign was previously identified as a key driver of category momentum, suggesting that continued traction from socially driven storytelling and targeted marketing might have supported sandal demand and overall brand performance during the quarter.

That said, the company is likely to have faced cost headwinds from tariff-related uncertainty.

What the Zacks Model Says About CROXOur proven model predicts an earnings beat for CROX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.

CROX has an Earnings ESP of +0.60% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks With Favorable CombinationHere are three other companies you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:

Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2027 earnings per share is pegged at $4.22, implying 11.4% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly revenues is pegged at $2.1 billion, which indicates growth of 6.1% from the figure reported in the prior-year quarter. RL has a trailing four-quarter earnings surprise of 8.7%, on average.

Cintas Corporation (CTAS - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2027 earnings per share is pegged at $1.36, implying 12.4% year-over-year growth.

The Zacks Consensus Estimate for quarterly revenues is pegged at $3 billion, which indicates an increase of nearly 8% from the figure reported in the prior-year quarter. CTAS has a trailing four-quarter earnings surprise of 2.4%, on average.

V.F. Corporation (VFC - Free Report) currently has an Earnings ESP of +0.80% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2027 earnings per share is pegged at 54 cents, implying a 3.9% year-over-year increase.

The Zacks Consensus Estimate for quarterly revenues is pegged at $2.7 billion, which indicates a decrease of 3.9% from the figure reported in the prior-year quarter. VFC has a trailing four-quarter earnings surprise of roughly 34%, on average.

Key Takeaways American Water is set to report Q3 earnings on Oct. 28, with EPS expected to rise 8.76% to $2.11.AWK's acquisitions, grid upgrades and approved rates are expected to boost Q3 earnings growth. Higher financing costs may pressure AWK's earnings; its 0.00% Earnings ESP signals no expected beat. American Water Works Company (AWK - Free Report) is scheduled to release third-quarter  2026 results on Oct. 28, after market close. The company delivered a positive earnings surprise of 1.26% in the last reported quarter.

 Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Q3 Expectations for AWKThe Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a year-over-year increase of 8.76%.

The consensus estimate for revenues is pinned at $1.47 billion, indicating growth of 1.46% from the year-ago reported number.

Factors Likely to Have Impacted AWK's Q3 PerformanceAmerican Water Works’ acquisition-driven expansion and organic growth initiatives are likely to have supported third-quarter 2026 performance.  In addition to potential synergies from the June 30, 2026 acquisition of the Hopewell Borough water system, earnings are expected to have benefited from four other acquisitions completed during the third quarter.

The company's ongoing investments in infrastructure modernization and replacement are expected to have improved operational efficiency and service reliability while supporting customer growth, higher demand and rate base expansion.

Newly implemented rates across AWK’s regulated operations are likely to support third-quarter 2026 results by enabling cost recovery on infrastructure investments and providing greater earnings visibility. On Sept. 9, 2026, AWK's unit New Jersey American Water received approval from the New Jersey Board of Public Utilities to implement new rates effective Sept.15, 2026, which are expected to have positively impacted third-quarter earnings.

However, higher financing costs are likely to have pressured third-quarter earnings.

What Our Quantitative Model Predicts About AWKOur proven model does not predict an earnings beat for American Water Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

AWK’s Earnings ESP: The company has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to ConsiderInvestors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

Entergy (ETR - Free Report) is set to report third-quarter results on Nov. 2 and is likely to have come up with an earnings beat. It has an Earnings ESP of +1.01% and a Zacks Rank #2 at present.

ETR’s long-term (three to five years) earnings growth rate is 10.16%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pinned at $1.71, which implies a year-over-year increase of 11.76%.

Southwest Gas (SWX - Free Report) is scheduled to report third-quarter results on Nov. 4 and is likely to have come up with an earnings beat. It has an Earnings ESP of +18.87% and a Zacks Rank #2 at present.

SWX’s long-term earnings growth rate is 11.15%. The Zacks Consensus Estimate for third-quarter EPS is pinned at 18 cents, which implies a year-over-year surge of 200%.

Evergy (EVRG - Free Report) is scheduled to report third-quarter results on Nov. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.41% and a Zacks Rank #2 at present.

EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter EPS is pinned at $2.27 per share, which implies a year-over-year increase of 11.82%.

On its third-quarter 2026 earnings call, held on Oct. 23, 2026, First Hawaiian (FHB +0.26%) reduced its full-year loan growth target to a range of 1% to 2%. For long-term investors, the bank's dominant island market share provides deposit stability that protects margins during changing rate cycles. Its pending acquisition of TriCo Bancshares opens new expansion opportunities in Northern California while maintaining conservative credit standards.

Three things management said stand out.

1. Preserving Local Autonomy Drives Long-Term Merger ValueIntegrating bank acquisitions often creates operational friction that drives away key commercial clients. First Hawaiian is mitigating execution risk by letting local leadership retain operational control across California branches.

The really long-term value comes from letting TriCo be TriCo and us supporting them with their customers and in their markets.
-- Robert Harrison, Chairman, President and Chief Executive Officer2. Commercial Real Estate Payoffs Squeeze Short-Term Loan GrowthUnexpected repayments from commercial real estate (CRE) borrowers reduced overall balances during the period. Rival lenders offered aggressive pricing to refinance high-quality accounts, prompting leadership to trim full-year targets.

Decline was primarily due to unexpected CRE loan payoffs, a slight decline in dealer floor plan balances and runoff in the residential loan portfolio.
-- Robert Harrison, Chairman, President and Chief Executive Officer3. Low-Cost Island Deposits Protect Profit MarginsAn insulated market structure in Hawaii may shield the bank from intense deposit competition. This stable deposit franchise keeps funding costs down and drives expansion in net interest margin (NIM), which measures the difference between interest earned on loans and paid on deposits.

The NIM in the third quarter was 3.30%, up 5 basis points linked quarter, with both asset yields and funding costs helping to drive that NIM accretion.
-- James Moses, Chief Financial OfficerLooking AheadAsset quality across the primary loan portfolios remains durable despite high interest rates, and leadership shows no sign of backing away from its conservative risk strategy. First Hawaiian holds structural advantages through its dominant market share in Hawaii, a low-cost deposit base, and tight credit underwriting. Leadership is watching fixed-rate loan repricing, deposit cost stabilization, and regulatory approval for its pending merger.

While we had some noise in the third quarter, the overall loan portfolio remains healthy.
-- Lea Nakamura, Chief Risk OfficerThe strategic expansion into Northern California unlocks new lending avenues while diversifying revenue away from concentrated island geography. Disciplined risk management and smooth operational execution during system conversion remain the critical catalysts for long-term compounding.

We feel really good about the way that this partnership is developing, and we still continue to be very excited about the strategic nature of this deal, and we know they feel the same way as well.
-- James Moses, Chief Financial OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways DexCom's Q3 revenues are projected to rise 9.4% to $1.32 billion, with EPS expected to grow 8.2% to 66 cents.DXCM's G7 15 Day adoption, strong new-patient starts and broader reimbursement are expected to support growth.DXCM faces tougher international comparisons, forex pressures and manufacturing costs. DexCom, Inc. (DXCM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, after the closing bell.

In the last reported quarter, the company’s adjusted earnings per share (EPS) of 70 cents surpassed the Zacks Consensus Estimate by 14.75%.

Let us check out the factors that might have shaped DXCM’s performance prior to the announcement.

DXCM’s Q3 EstimatesCurrently, the Zacks Consensus Estimate for revenues is pegged at $1.32 billion, indicating growth of 9.4% year over year. The consensus mark for earnings is pinned at 66 cents per share, indicating an improvement of 8.2%.

Factors to Note Before DXCM ReportsDexCom is expected to have sustained healthy revenue growth in the third quarter of 2026, supported by continued adoption of its continuous glucose monitoring (CGM) systems, broader reimbursement coverage and market share gains across key patient segments. In the second quarter, the company reported 13% revenue growth and 12% organic revenue growth, reflecting solid demand across U.S. and international markets. Management raised its full-year 2026 revenue outlook to $5.18-$5.25 billion, implying growth of 11-13%, supported by stronger underlying organic growth expectations. For the third quarter, new customer additions, product adoption and expanding access are expected to have supported top-line performance amid tougher international comparisons.

The U.S. business is expected to have benefited from sustained demand across Type 1 diabetes, insulin-using Type 2 diabetes and non-insulin Type 2 diabetes. In the second quarter, U.S. revenues increased 11%, supported by strong new-patient starts and market share gains. Management noted that global new customer starts remained near the record level achieved in the first quarter, with U.S. starts increasing sequentially. Broader commercial reimbursement also remains a key growth driver, with coverage for people with diabetes across the four largest pharmacy benefit managers providing access to more than 7 million non-insulin Type 2 patients. Continued physician education, easier onboarding and efforts to reduce access barriers are expected to have supported further adoption.

International markets are also likely to have contributed to growth, although year-over-year comparisons are expected to become more challenging, particularly in the third quarter. International revenue grew 19% in the second quarter, with organic growth of 16%, aided by reimbursement expansions in markets such as France and Canada. DexCom continues to pursue additional reimbursement opportunities and tender wins across its international markets, supported by a broader product portfolio that includes Dexcom ONE Plus and Dexcom Flex. The launch of Dexcom Flex in Germany expands the company's offerings for Type 2 patients using basal insulin and those not using insulin in select markets. While new access opportunities are expected to support long-term growth, the pace of expansion, stronger prior-year comparisons and foreign exchange movements are likely to impact third-quarter results.

Product innovation and customer experience are expected to have remained key growth catalysts. The G7 15 Day system, which offers extended sensor wear, an improved algorithm and an updated adhesive patch, is likely to have supported adoption and customer retention in the third quarter. Management reported improving customer satisfaction scores for three consecutive quarters and remained on track to convert nearly 50% of its U.S. customer base to G7 15 Day by 2026-end. The system's integration with Tandem's insulin delivery platforms, including Mobi, has expanded its availability to adult G7 customers in the United States. Management expects the product's contribution to increase in the second half of 2026 as more users transition and recurring purchase patterns develop. The company also received Health Canada's clearance for G7 15 Day and plans to launch it in Canada in the second half of 2026, followed by additional international markets as quickly as possible.

DexCom's broader digital health initiatives are also expected to have supported engagement and expanded its addressable market. The redesigned Stelo application, featuring AI-driven insights, enhanced food logging and personalized nutrition analysis, was recently launched broadly and is intended to serve as a foundation for future applications across the product portfolio. The acquisition of Nutrisense is expected to have strengthened these capabilities by integrating CGM-based nutrition insights and coaching into DexCom's offerings.

Meanwhile, the company's Smart Basal pilot has demonstrated encouraging results, with participating practices helping patients reach an optimal basal insulin dose in an average of three weeks compared with 12 weeks or longer in routine care. The FDA's TEMPO digital device pilot also provides an opportunity to advance glucose health programs and explore CGM-based screening for prediabetes. While these initiatives are unlikely to represent material near-term revenue drivers, their potential to improve engagement, expand use cases and strengthen the value proposition of DexCom's technology could support growth over time.

Earnings Beat UnlikelyOur proven model does not predict an earnings beat for DXCM this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank:The company has a Zacks Rank #3 at present.

Stocks Worth a LookHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon.

PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.

IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.

IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.

Becton, Dickinson and Company (BDX - Free Report) or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5.

BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.

Key Takeaways Dominion is set to report Q3 earnings on Oct. 30, with EPS estimated at $1.20 on $4.8B in revenues.Data center demand, regulated investments & favorable rate adjustments are expected to boost D's Q3 results.Higher financing costs & reduced tax credits may weigh on D, while its shares trade at an industry premium. Dominion Energy (D - Free Report) is scheduled to release its third-quarter 2026 results on Oct. 30, before market opens. The Zacks Consensus Estimate for earnings is currently pegged at $1.20 per share on revenues of $4.8 billion.

Third-quarter earnings estimates have gone down 2.44% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 6.02%.

D Stock’s Earnings Surprise HistoryDominion Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.8%.

What the Zacks Model UnveilsOur proven model conclusively predicts an earnings beat for Dominion Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

D’s Earnings ESP: Dominion Energy has an Earnings ESP of +1.87% at present.

Zacks Rank of D: The company currently carries a Zacks Rank #3.

 Some companies in the same sector with the right combination of the two factors for an earnings beat this season are American Electric Power (AEP - Free Report) , Entergy (ETR - Free Report) and PPL Corp. (PPL - Free Report) . AEP, ETR and PPL currently have an Earnings ESP of +2.23%, +1.01% and +0.38%, respectively. All three stocks carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Impacted D Stock’s Q3 ResultsDominion Energy’s third-quarter 2026 earnings are likely to have benefited from regulated infrastructure investments aimed at strengthening grid reliability and meeting rising electricity demand. The company is also expected to have gained from favorable electric rate adjustments, particularly the new rates implemented in South Carolina at the beginning of July 2026. These factors, along with increased contributions from regulated investments, are expected to have supported quarterly earnings.

Dominion Energy’s third-quarter performance is expected to have benefited from robust commercial load growth, primarily driven by expanding data center demand across Virginia. Increasing electricity consumption, supported by customer growth across its Virginia and South Carolina service territories, is likely to have boosted sales volumes. Contributions from the Charybdis vessel and a return to normal weather conditions are also expected to have supported the company's quarterly performance.

However, the positives are likely to have been partially offset by higher financing costs, increased capacity expenses and elevated operations and maintenance costs. Lower contributions from Renewable Natural Gas, reduced nuclear production tax credits, share dilution and unfavorable tax impacts are also expected to have weighed on Dominion Energy’s third-quarter earnings.

D Stock’s Price PerformanceD’s shares have gained 7.7% in the past year compared with the Zacks Utility – Electric Power industry’s rise of 1.7%.

Image Source: Zacks Investment Research

Dominion Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. Dominion Energy is trading at 17.3X compared with its industry’s 14.57X.

Image Source: Zacks Investment Research

Like a poorly maintained wooden roller coaster, Six Flags Entertainment (FUN +2.88%) is looking pretty rickety these days. Shares of the country's largest operator of regional amusement parks have plummeted 45% over the past month -- down more than 60% over the last three months -- as a high-profile deadly roller coaster accident became the latest public relations nightmare for a business that was already struggling this year.

I want to make sure that I don't gloss over the passing of Hassan Jihad Ibn Kariem, the 42-year-old schoolteacher who died two weeks ago after falling out of the restraints of the Goliath hypercoaster at Six Flags Over Georgia. It's horrific. As a fellow coaster enthusiast who has been on that ride (and 275 other different roller coasters), I still can't get that accident out of my mind.

I still became a Six Flags shareholder on Monday of last week. Let me spell out why I think Six Flags makes sense for risk-tolerant investors at this point.

Image source: Getty Images.

1. Bargains aren't easy to find these days Bottom fishing is a dangerous sport, and in the near term, I'm an inept angler. Six Flags would go on to tumble another 17% last week.

Pessimism continues to run high when it comes to Six Flags. This week kicked off with Goldman Sachs slashing its price target on the shares from $15 to $6 on Monday morning, and it's not even the Street low. Mizuho earned that honor last week, cutting its earlier target to $5 a share.

"Be fearful when others are greedy, and greedy when others are fearful," Warren Buffett says.

I should point out that I know the stock's 60% slide over the past three months doesn't mean Six Flags has shed three-fifths of its value. Six Flags' market cap has taken a 60% hit to $700 million, but this company's roughly $5 billion in long-term debt inflates the enterprise value to $6 billion. The actual enterprise value that a potential acquirer would take on has only fallen by just over 10% since this summer.

I'm not expecting a potential buyer or even a private equity firm to save the day here. I just think market sentiment can eventually stabilize and turn positive, offering a higher ceiling for public investors than the obvious floor of zero.

FUN Six Flags Entertainment$6.97+$0.20 (+2.88%)

NYSE · As of 2:57 PM ET 10/26/26

2. The seasonal timing of the stock slide is bullishly convenient This week's Goldman Sachs update may seem rattling. The fresh analyst note highlights weak attendance trends, operational issues, and the debt-heavy balance sheet. Goldman Sachs says foot traffic data point to a 16% year-over-year decline so far this quarter, which is relevant because October accounts for the lion's share of the fourth quarter's results.

Seasonality is actually Six Flags' friend here. Outside of a couple of parks in the South, most of the chain's gated attractions close for the season shortly after the Halloween-themed events end. This time of the year, it's more about haunted houses and scare mazes than the actual scream machines that Six Flags had to temporarily close following the accident. It's already working on the modifications to make them safer.

In the meantime, Six Flags historically sees its fourth-quarter revenue cut in half from its peak third-quarter performance. The first quarter that follows sees its revenue decline by more than two-thirds from the fourth quarter.

Put another way, Six Flags has the next five months to fortify its safety procedures, reshape its 2027 season pass marketing approach, and move away from bearish headline fodder.

3. The spring is set for the next bullish catalyst Remember when Six Flags spiked last October on news that an activist investor teamed up with NFL great Travis Kelce (and Mr. Taylor Swift) to make a play on the park operator? And investors warmed up to Six Flags after selling seven of its weaker-performing destinations to EPR Properties (EPR +0.26%) in a $331 million deal earlier this year?

Kelce was ultimately tapped as brand ambassador for Six Flags. Selling some of its lesser parks to the recreational and leisure real estate investment trust (REIT) came at an enterprise value discount to the overall attendance and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) they contributed, but it provided an important cash windfall. The deal also helps Six Flags focus on its more financially successful attractions.

Six Flags will have a busy offseason. There will be more noise in the coming months, and all it takes is the next bullish spark to get the shares coasting in the right direction again.

Key Takeaways EQIX is set to report Q3 earnings on Oct. 28, with revenues and AFFO per share expected to rise Y/Y.AI adoption, cloud expansion and demand for interconnected data centers are likely to support EQIX's growth.EQIX's Q3 revenue estimate suggests an 11% rise, while the AFFO per share estimate indicates 6.9% growth. Equinix, Inc. (EQIX - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and adjusted funds from operations (AFFO) per share.

In the previous quarter, this Redwood City, CA-based data center real estate investment trust (REIT) reported an AFFO of $10.78 per share, outpacing the Zacks Consensus Estimate of $11.25. The results reflected higher recurring revenues on stronger underlying demand and robust bookings. Non-recurring revenues more than doubled, driven primarily by xScale leasing fees.

Over the preceding four quarters, EQIX’s AFFO per share surpassed the consensus estimate on two occasions and missed in the remaining quarters, with the average beat being 2.05%. This is depicted in the graph below:

Factors at Play for EquinixIn the third quarter of 2026, Equinix is likely to have benefited from the solid demand for interconnected data center infrastructure. Enterprises’ and service providers’ continued efforts to integrate artificial intelligence into their strategies and offerings and advance their digital transformation agendas are likely to keep demand up in the upcoming years.

Moreover, the demand for Equinix’s interconnected ecosystem is likely to have remained strong, driven by accelerating enterprise cloud adoption and increasing demand from cloud and internet customers for highly interconnected data center space.

The company’s recurring revenue model, which comprises colocation, related interconnection and managed infrastructure services, is expected to have supported stable cash flows in the to-be-reported quarter, boosting the data center REIT’s top line.

Q3 Projections for EQIXThe Zacks Consensus Estimate for colocation revenues is pegged at $1.81 billion, suggesting growth from $1.64 billion in the prior-year period. The consensus mark for interconnection revenues is pinned at $469.6 million, indicating growth from $422 million in the prior-year period.

The consensus mark for managed infrastructure revenues is pegged at $120.3 million, implying an increase from $118 million reported in the prior-year period. The consensus mark for other revenues is pinned at $39.7 million, indicating a rise from $38 million in the prior-year quarter.

For the third quarter of 2026, Equinix projected revenues between $2.525 billion and $2.575 billion, implying a 9-11% increase year over year. The Zacks Consensus Estimate for the same is pegged at $2.57 billion, indicating an increase of 11% from the year-ago period’s reported figure.

EQIX estimated adjusted EBITDA in the range of $1.275-$1.315 billion for the third quarter.

However, high interest expenses may have partly impeded the company’s quarterly performance.

EQIX’s activities during the to-be-reported period were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been revised 21 cents downward to $10.51 over the past three months. However, it suggests a 6.9% increase from the prior-year quarter’s reported figure.

What Our Quantitative Model Predicts for EQIXOur proven model doesn’t conclusively predict a surprise in terms of AFFO per share for Equinix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here.

Equinix currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Ventas (VTR - Free Report) and Host Hotels & Resorts (HST - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.

Ventas is slated to report quarterly numbers on Oct. 27, 2026. VTR has an Earnings ESP of +0.70% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Host Hotels is slated to report quarterly numbers on Nov. 4, 2026. HST has an Earnings ESP of +3.20% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Key Takeaways Imported pork competition and higher costs linked to the Middle East conflict likely pressured U.K. margins.PPC likely faced soybean price volatility and unclear Chinese demand for U.S. soybeans.U.S. margins likely faced weaker cutout values, while affordable poultry and prepared meals supported demand. As Pilgrim’s Pride Corporation (PPC - Free Report) prepares to unveil its third-quarter fiscal 2026 results on Oct. 28  after market close, investors are eager to see whether the company can beat market expectations.

The Zacks Consensus Estimate for revenues is pegged at $4.6 billion, implying a 3.4% decline from the prior year. Meanwhile, the consensus mark for earnings has remained unchanged at 48 cents per share in the past seven days, indicating a 68.4% decline from the year-ago period. PPC has a trailing four-quarter negative earnings surprise of 11.5%, on average.

Key Factors to Observe for PPC's Q3 EarningsPilgrim’s Pride’s third-quarter fiscal 2026 performance faced pressure from challenging market conditions and elevated operating costs, which might have weighed on profitability across key businesses. In the U.K., margins may have remained under pressure from increased competition from imported pork, creating an unfavorable pricing environment. Additionally, higher costs associated with the ongoing conflict in the Middle East likely added to operating expenses, potentially limiting the benefits of operational efficiencies and weighing on overall profitability.

The company is also likely to have faced continued uncertainty in its input cost environment, particularly across the soybean complex. Previously highlighted volatility in soybean markets, partly influenced by geopolitical developments in the Middle East, likely remained a concern for cost management. Uncertainty about the pace and volume of Chinese purchases of U.S. soybeans may have further driven commodity price fluctuations, potentially pressuring margins.

In the U.S. business, profitability likely remained challenged by unfavorable market pricing dynamics. The year-over-year decline in jumbo cutout value might have weighed on segment margins and reduced contributions from higher-value products. These pricing pressures could have offset some of the benefits from operational improvements and cost-control initiatives, while continued commodity market volatility may have further constrained margin performance.

That said, the company’s diversified portfolio likely provided some support amid these challenges, as its affordable poultry and prepared meals continue to appeal to budget-conscious consumers. This sustained demand is likely to have helped partially offset cost pressures and provided some support to the U.S. business's overall performance.

What the Zacks Model Says About PPCOur proven model does not conclusively predict an earnings beat for PPC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

PPC has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable CombinationHere are three companies you may also want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +2.54% and currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly revenues is pegged at $5.6 billion, which indicates an increase of 6.2% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 11.1%, on average.

The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.30% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at $2.12, implying a 63.1% year-over-year decline.

The Zacks Consensus Estimate for quarterly revenues is pegged at $3.3 billion, which indicates an increase of 2.3% from the figure reported in the prior-year quarter. HSY has a trailing four-quarter earnings surprise of 21.8%, on average.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings per share is pegged at $1.17, implying a 1.7% year-over-year increase.

The Zacks Consensus Estimate for quarterly revenues is pegged at $22.2 billion, which indicates an increase of 4.9% from the figure reported in the prior-year quarter. SYY has a trailing four-quarter earnings surprise of 1%, on average.

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RDDT Buy

Buy Reddit (RDDT) into Q3. The setup is strong: Truist expects ~50% YoY revenue growth and ~45% adjusted EBITDA margin, and Q2 showed both audience growth (+18% DAU uniques) and monetization strength (avg revenue per unique +36%). With RSI in the mid-30s, you get a potential relief rally if results confirm ad momentum and profitability. Thesis: Reddit can keep turning engagement into higher ad dollars, not just more traffic.

Key Risk: Management fails to prove monetization durability—revenue per user drops or guidance shows ads growth can’t offset weaker search/traffic trends.

AI-Disintermediation Hedge via Google

Sell Alphabet (GOOGL) or reduce exposure. The article flags AI disintermediation and Google algorithm changes as a key risk to Reddit’s commercial value. If AI shifts discovery away from traditional search and toward direct answers, the market may re-rate ad ecosystems and weaken Google’s relative advantage in monetizing intent, while boosting platforms that can license content. This is a relative-value bet: if Reddit’s model holds, Google’s ad/search dominance faces more pressure.

Key Risk: AI adoption instead strengthens Google’s monetization (better ad targeting, higher search engagement), and the market treats Reddit’s AI risk as manageable rather than structural.

Truist is sticking with Reddit RDDT stock ahead of an earnings report that will test whether the company’s advertising momentum can outweigh concerns about its dependence on search traffic.

Analyst Youssef Squali reiterated a Buy rating and $275 price target on RDDT this morning, only days ahead of its quarterly update on Thursday.

The bullish call brings a much-needed reprieve to Reddit shares that have fallen out of favor with investors in 2026, currently down some 45% versus their year-to-date high.

Squali expects Reddit to post about 50% year-over-year revenue growth and an adjusted EBITDA margin near 45% for its to-be-reported quarter.

For investors, the attraction is the combination. Rapid expansion becomes more valuable when a company can retain a substantial share of incremental revenue as earnings.

That helps explain why Truist remains bullish. RDDT stock offers exposure to advertising growth with an already profitable operation, reducing its dependence on distant promises of eventual scale.

From a technical perspective as well, Reddit’s relative strength index (RSI) sits in the mid-30s as of writing, indicating its share price is approaching oversold levels that often trigger a relief rally.

Truist describes Reddit as one of the fastest-growing and most profitable advertising platforms. Its latest reported results help explain that enthusiasm.

Q2 advertising revenue increased 64% to $762 million, while global daily active uniques rose 18% to 130.3 million.

Average revenue per unique increased 36% to $6.18. Together, those figures show the company’s expansion came from both a larger audience and stronger monetization of that audience.

That distinction matters – revenue can keep advancing faster than traffic when advertisers extract more value from reaching users.

However, durability of monetization improvements is one of the concerns Youssef Squali explicitly identifies.

Investors should therefore assess whether solid revenue per user accompanies healthy engagement. Monetization gains offer a strong earnings engine – but assuming they can indefinitely compensate for weaker audience trends would stretch the bullish argument too far.

Beyond quarterly ads performance, management faces a strategic question – can Reddit preserve the commercial value of its conversations as artificial intelligence (AI) changes how people find information?

Squali highlights Google algorithm changes, potential AI disintermediation, and data-licensing renewals or new agreements among investors’ principal concerns.

The investment implications run in both directions.

AI services could make Reddit’s content more valuable to license while also allowing users to consume answers without visiting the platform.

Investors should listen for evidence that Reddit can turn that distribution into durable commercial relationships while protecting engagement.

Truist’s Buy rating expresses confidence, but commentary on these issues could matter as much as the earnings figures in determining whether shareholders share that conviction.

SummaryI'm upgrading Nebius Group N.V. to a buy, as a recent selloff creates an attractive entry point.NBIS stands out with a clean balance sheet, strong customer prepayments, and disciplined capital structure versus highly leveraged peers.Despite sector volatility and premium valuation (13.65x EV/Sales; 33.11x EV/EBITDA), NBIS justifies its multiple through rapid growth and a differentiated cloud offering.I expect continued volatility but see NBIS as a likely survivor in the neocloud shakeout, unlike more leveraged competitors.I hereon share my sentiment on NBIS and why I see more upside ahead. MickeyCZ/iStock via Getty Images

Nebius Group N.V. (NBIS) started the week the way it spent most of October: lower. Shares of Nebius, CoreWeave (CRWV), and IREN (IREN) each fell more than 4% in premarket trading

5.59K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Equinor's Q3 earnings are projected to surge 273%, with revenues expected to rise 37.4% year over year.Higher crude prices and elevated European refining margins are expected to boost Equinor's Q3 profitability.EQNR targets 3% production growth, while its 2.53X EV/EBITDA signals a discount to the industry average. Equinor ASA (EQNR - Free Report) is set to report third-quarter 2026 results on Oct. 28, before market open.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.38 per share, implying an increase of 273% from the year-ago reported number. EQNR has witnessed one upward and one downward earnings estimate revision over the past 30 days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $35.8 billion, suggesting a 37.4% rise from the year-ago actuals.

EQNR beat the consensus estimate for earnings in two of the trailing four quarters and missed twice, delivering an average surprise of 10.5%. This is depicted in the graph below:  

Image Source: Zacks Investment Research

Equinor’s Q3 Earnings WhispersOur proven model predicts an earnings beat for EQNR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

The company has an Earnings ESP of +2.78% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors to Consider for EQNREquinor, the Norwegian integrated energy company, is expected to have benefited from strong oil and gas prices in the third quarter. Per data from the U.S. Energy Information Administration , the Brent spot crude averaged $83.76 per barrel in July and $91.08 per barrel in August, increasing further to $114.16 per barrel in September. Notably, these figures are significantly higher than those recorded in the corresponding period of 2025. High crude prices are anticipated to have supported its upstream business and profitability in the to-be-reported quarter.

In addition, the company’s downstream operations have gained from unusually high European refining margins in the third quarter. Refining margins are expected to have remained elevated in the third quarter due to continued tensions and supply disruptions in the Middle East. Moreover, low global light-product inventories and constrained refining capacity are expected to have supported refining fundamentals. These factors are likely to have improved Equinor’s downstream profitability in the quarter, potentially aiding its financial performance.  

EQNR’s Price Performance & ValuationEQNR’s stock has soared 108.4% over the past year compared with the 134.8% growth of the composite stocks belonging to the industry. BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) , two other leading integrated energy players, have gained 55% and 73.4%, respectively.

Image Source: Zacks Investment Research

EQNR appears to be relatively undervalued, at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 2.53X, below the broader industry average of 6.38X, implying that the stock is currently trading at a discount. BP plc and Eni are currently trading at a trailing 12-month EV/EBITDA of 3.26X and 7.44X, respectively.

Image Source: Zacks Investment Research

Investment Thesis of EquinorEquinor is a leading natural gas supplier to Europe, and this offers the company a unique competitive advantage in the current energy market scenario. Several energy companies operating in the Middle East have suffered key infrastructure damage due to the war, causing them to reduce output. With the autumn and winter season approaching, LNG demand is expected to remain robust in Europe. Equinor is well-positioned to capitalize on the increasing demand and benefit from elevated gas prices in Europe.

In addition, EQNR’s strong upstream operations on the Norwegian Continental Shelf (“NCS”) are expected to aid production growth and improve its earnings outlook. The company is increasing upstream production on the NCS through the ramp-up of the Johan Castberg, Halten East and Verdande fields, alongside the start-up of new fields such as Eirin and Symra. EQNR is also expanding its international portfolio, with assets like Adura in the U.K. and Bacalhau in Brazil. Management stated that the company is well on track to deliver 3% year-over-year production growth. With oil prices expected to stay elevated in the near term, EQNR’s production growth is anticipated to enhance its earnings and cash flows.

Equinor also has a strong financial and liquidity position, with a net debt ratio of 10.4% at the end of the second quarter. The company’s cash and cash equivalents amounted to $8.1 billion at the end of the June quarter. EQNR’s strong balance sheet and financial position enable it to withstand commodity cycles and return capital to shareholders.

Are BP and Eni Poised to Gain From the Current Market Environment?BP plc, the British integrated energy major, is involved in exploration and production activities, downstream operations and oil and gas trading. The companybenefits from a strong and diversified global asset portfolio and continues to advance a multi-year upstream project and resource pipeline. These developments enhance the company’s future earnings and cash flow outlook. The company’s upstream operations are expected to benefit from the strength in crude prices in recent quarters. Moreover, high refining margins driven by tightened refined product markets are expected to benefit the integrated energy giant’s financial results.

Eni is another integrated energy company with a geographically diverse portfolio of assets. The company has added more than 1 billion barrels of oil equivalent of newly discovered resources in 2026, along with a pipeline of 54 projects, providing long-term growth visibility. Eni has substantial exposure to rising oil and gas prices, which enhances the outlook for its upstream business. In addition, higher European margins are expected to have benefited its refining and chemicals businesses, thereby improving its financial performance.

Time to Bet on the Stock or Wait?Equinor’s market position as a leading natural gas supplier to Europe is expected to support its performance amid robust seasonal gas demand and elevated prices. The production growth from its NCS assets and international projects is also anticipated to boost earnings and cash flows. The stock is also trading relatively cheaper to its peers.

Given the current business environment, investors should consider owning the EQNR stock at present.

SanDisk just posted a record fiscal year yet sits nearly 50% below its 52-week high after a brutal month-long selloff. Whether that gap represents a rare opportunity or a warning sign depends entirely on one factor most analysts are overlooking.

SanDisk (NASDAQ:SNDK | SNDK Price Prediction) trades at $1,260.93 after a sharp October sell-off. The 24/7 Wall St. price target stands at $1,407.07 over the next 12 months. That implies 11.59% upside, and we rate the stock a strong buy.

Metric
Value

Current Price
$1,260.93

Price Target from 24/7 Wall St.
$1,407.07

Upside/Downside
11.59%

Recommendation
BUY

Confidence Level
90%

SanDisk is generating record cash at very high margins, but the stock is priced as if the NAND cycle has already peaked. In our view, the pullback has gotten ahead of the fundamentals.

A 33% Monthly Slide Masks a Record Fiscal Year
SanDisk fell 9.47% over the past week and 33.09% over the past month. That leaves it about 46% below its 52-week high of $2,354.39. Shares are still up 431.92% year to date, and Barron’s listed SanDisk Friday among the stocks explaining today’s market.

Fiscal fourth-quarter revenue reached $8.965 billion, up 371.6% year over year. Non-GAAP EPS of $39.25 beat the $33.28 estimate, the fifth consecutive beat. For the first quarter of fiscal 2027, management forecast to revenue of $10.30 billion to $10.80 billion and EPS of $44 to $46. The board also authorized an additional $14 billion in buybacks.

Why Bulls See $2,400 Ahead
Visibility supports the upside thesis. SanDisk has signed New Business Model (NBM) agreements with 8 customers. At floor pricing, those deals carry a minimum of $93.9 billion in expected revenue, backed by $16.5 billion in financial guarantees. CEO David Goeckeler said customers are “giving us demand signals all the way out to the end of the decade.”

Analyst ratings stand at 4 Strong Buy, 17 Buy, 3 Hold and 1 Strong Sell. The consensus target implies about 72% upside. The bullish case reaches $2,400.59, a 90.38% gain, if pricing holds and high-bandwidth flash gains traction.

What Could Break the NAND Story
Memory is a cyclical business. About two-thirds of fourth-quarter sequential growth came from higher pricing, so new supply would hit earnings quickly. Consumer revenue fell 32% sequentially to $556 million.

SanDisk also depends heavily on Kioxia through the Flash Ventures joint venture. The bear case stands at $1,029.38, a decline of 18.36%.

As a counterpoint, the consumer drop partly reflects bits being shifted to Datacenter, which grew from about 12% of bits to 38%. Floor prices in the NBM contracts also limit how far pricing can fall.

How SanDisk Compares to Micron and Western Digital
Micron Technology (NASDAQ:MU) is the closest AI memory peer. Its fiscal fourth-quarter revenue rose 379.27% to $54.229 billion. Micron’s margin guidance is similar to SanDisk’s, yet its market value is far larger, which leaves SanDisk room to re-rate.

Western Digital (NASDAQ:WDC) is SanDisk’s former parent and now focuses on hard drives. It offers a useful contrast on the same AI storage demand.

Its fiscal first-quarter non-GAAP EPS of $4.64 beat the $4.0771 estimate, but its margins are well below SanDisk’s. Measured against both peers, our target looks reasonable and arguably conservative.

Company
Next-Quarter Non-GAAP Gross Margin Guide
Market Cap

SanDisk
83.0% to 85.0%
$183.41B

Micron
86.25%
$980.92B

Western Digital
60% to 61%
$129.69B

Signed Visibility Could Power SanDisk’s Rebound
The 24/7 Wall St. price target is $1,407.07, with a buy rating and 90% confidence. Contracted visibility is the critical factor for me.

The upside thesis strengthens if NBM deals keep growing and first-quarter results land within guidance. The thesis weakens if NAND pricing falls over before signed volumes build up. At about 16x trailing earnings, the October drop leaves shares trading below our target.

SanDisk’s longer-term trading range appears below, assuming current growth trends and market conditions hold.

Year
Bear
Price Target from 24/7 Wall St.
Bull

2026
$1,212.39
$1,293.03
$1,390.90

2027
$1,076.94
$1,412.83
$2,131.85

2028
$983.36
$1,523.16
$3,211.19

2029
$966.80
$1,661.59
$4,081.09

2030
$969.18
$1,763.78
$4,815.42

They rest on SanDisk continuing to execute on its NBM agreements and its BiCS technology roadmap. Adoption of high-bandwidth flash could push results above these figures, while a NAND supply glut would move them toward the bear column.

Contact [email protected] for any questions or corrections.

Key Takeaways STX expects Q1 FY2027 revenues of $4.1B and non-GAAP EPS of $7.30, driven by strong storage demand.AI-led data center growth, Mozaic platform adoption and value-based pricing support revenue expansion.Lower debt boosts financial flexibility, but HAMR execution risks & cloud customer reliance remain concerns.
Seagate Technology Holdings plc (STX - Free Report) is scheduled to report first-quarter fiscal 2027 earnings on Oct. 27, after the closing bell.

The Zacks Consensus Estimate for earnings is pegged at $7.44 per share, indicating a 185.06% year-over-year increase. The Zacks Consensus Estimate for revenues is $4.11 billion, suggesting a 56.32% uptick from the year-ago actual.

Management anticipates fiscal first-quarter revenues of $4.1 billion (+/- $100 million). At the midpoint, this indicates a 56% year-over-year improvement. Non-GAAP earnings are expected to be $7.30 per share (+/- 20 cents).

STX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.4%.

Image Source: Zacks Investment Research

What the Zacks Model Predicts for STXOur proven model predicts an earnings beat for Seagate this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Seagate has an Earnings ESP of +2.07% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

STX's Q1 FY2027 Earnings: What to ExpectSTX's fiscal first-quarter performance is likely to have benefited from strong demand visibility through its BTO model, reinforcing confidence in sustained demand for high-capacity nearline drives as AI adoption accelerates. Revenue and profitability are expected to have continued expanding during the September quarter, fueled by the ramp-up of its Mozaic platform and pricing strategy. Strong data center demand drives growth, with cloud customers accounting for about 90% of exabyte shipments and long-term commitments extending into 2028.

The growing adoption of AI and tiered storage architectures is increasing the need for high-capacity hard drives as AI workloads generate more data that must be stored and retained. To capitalize on this opportunity, Seagate is advancing its HAMR-based Mozaic platform, which is helping increase storage density and support exabyte growth. HAMR drives now account for roughly 40% of nearline exabytes, with the Mozaic 4 ramp progressing and Mozaic 5 planned for late 2027. The company aims to increase HAMR penetration to 70% of exabytes by June 2027, supported by investments in manufacturing tools, technology development and yield optimization.

Seagate is also benefiting from a disciplined, value-based pricing strategy, with strong demand and product transitions supporting higher pricing in recent contract negotiations. While manufacturing transitions involve greater factory complexity, additional tool requirements and yield improvements, Seagate remains well poised to meet rising demand. Growing storage needs from AI, video, sensor data, edge applications and physical AI are further strengthening its long-term outlook. With demand visibility extending through fiscal 2027, improving gross margins and confidence in achieving margins above 60%, the company is positioning itself for sustained revenue and profitability growth.

For the quarter, non-GAAP operating expenses are expected to be around $300 million. At the midpoint of revenue guidance, non-GAAP operating margin is projected to be roughly 50%. The guidance incorporates expected dilution from Exchangeable Senior Notes due 2028, minimal anticipated impact from tariffs and minimal expected impact from current Middle East geopolitical conflicts. This outlook suggests that management expects cloud spending and AI-driven storage demand to remain healthy.

Image Source: Zacks Investment Research

Moreover, rapid deleveraging enhances financial flexibility. Seagate ended fiscal 2026 with $1.7 billion in cash and approximately $3.6 billion in debt. The company reduced gross debt by $1.4 billion during the fiscal year, bringing net leverage down to 0.4 times adjusted EBITDA. It further strengthened its balance sheet by extinguishing $1 billion in high-yield notes in July and retiring the remaining convertible-note balance in September. Lower debt levels are expected to reduce interest expenses and provide greater financial flexibility to support shareholder returns through dividends and share repurchases, while funding investments in advanced storage technologies.

Despite the favorable outlook, Seagate faces several risks such as execution risks from HAMR transitions, which could increase manufacturing complexity, delay customer qualifications and pressure yields and margins. Heavy reliance on cloud customers exposes it to spending fluctuations, while tariffs, trade restrictions and currency volatility pose additional risks. Intense competition from HDD heavyweights like Western Digital Corporation (WDC - Free Report) , SSD providers and storage-system vendors, coupled with macroeconomic uncertainty and supply-chain volatility, could further pressure pricing and profitability.

STX Stock vs. IndustrySTX stock has climbed 173.7% in the past year, exceeding the Zacks Computer-Integrated Systems industry, the Zacks Computer & Technology sector and the S&P 500’s growth of 96.3%, 11.6% and 11.1%, respectively.

Image Source: Zacks Investment Research

The company has also surpassed its industry peers like Agilysys, Inc. (AGYS - Free Report) , which has rose 4.8% in the past year and WDC, which grew 171.3%. STX, however, has lagged storage rival Micron Technology (MU - Free Report) , which rose 298.7%.

STX’s Key Valuation MetricsIn terms of forward price/earnings, STX’s shares are trading at 14.68X, higher than the industry’s 9.53X.

Image Source: Zacks Investment Research

WDC, MU and AGYS are trading at multiples of 14.08X, 4.83X and 57.57X, respectively.

Should You Buy STX Stock Ahead of Q1 Earnings?Seagate's investment case is backed by growing AI-led storage requirements, higher-capacity HDD technology, favorable pricing conditions and strong recent cash generation. Seagate is worth considering as a potential beneficiary of the AI storage cycle, but investors should not buy solely in anticipation of an earnings beat. Revenue growth, margin sustainability, free cash flow and forward guidance will better indicate whether the stock deserves a higher valuation.

The company has provided an encouraging outlook, reflecting stronger demand for mass-capacity storage, improved pricing and expanding AI infrastructure requirements. If Seagate beats fiscal first-quarter guidance, delivers stronger margins and signals sustained demand growth, the positive results could boost investor confidence and support further share price gains.

Key Takeaways WCN shares gained 10.9% after Q3 earnings beat estimates by 4% and revenues exceeded expectations by 1.2%.Waste Connections gained from 5.5% core pricing growth, a 3% rise in landfill tons and stronger recycling.WCN raised its 2026 revenue outlook to $10.09B and increased its quarterly dividend 10%.
Waste Connections (WCN - Free Report) reported strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimates. Improved landfill volumes, solid pricing and higher commodity-related revenues supported the performance.

WCN reported adjusted earnings of $1.58 per share, beating the consensus estimate of $1.52 by 4%. Earnings increased 9.7% from $1.44 in the year-ago quarter. Revenues of $2.64 billion surpassed the consensus mark of $2.61 billion by 1.2% and rose 7.3% year over year. Solid waste unit volumes declined 1.2%, improving 70 basis points sequentially.

Waste Connections raised its 2026 revenue outlook to $10.09 billion from the preceding quarter’s view of $10.02-$10.05 billion. The projection lies above the Zacks Consensus Estimate of $10.05 billion.

The better-than-expected results and a raised top-line outlook impressed the market as the stock gained 10.9% since the release of results on Oct. 21.

Over the past six months, WCN shares have gained 16.1%, surpassing the industry’s and the Zacks S&P 500 Composite’s 4.6% and 5.9% rally, respectively.

WCN's Solid Waste TrendsSolid waste internal growth was 4.5% in the quarter. Core price increased 5.5%, while yield, reflecting the average price per unit of service after customer and business-mix changes, improved 4.3%. Fuel and material surcharges contributed 1.3%.

Unit volume declines moderated from 1.9% in the preceding quarter. Roll-off pulls fell 2.5%, while rates per pull increased 5.5%. Landfill tons grew 3%, supported by a 7% increase in special waste and 5% growth in construction and demolition (C&D) volumes. Landfill rates per ton rose approximately 4%.

The improvement was broad-based, with positive special waste volumes at 60% of locations. However, residential construction remained pressured by elevated interest rates and fuel costs.

Waste Connections' Segmental RevenuesSolid Waste Collection revenues increased 5.5% year over year to $1.82 billion. Solid Waste Disposal and Transfer revenues advanced 7.8% to $492.2 million, benefiting from stronger landfill activity and pricing.

Solid Waste Recycling revenues grew 15.1% year over year to $64.7 million, supported by improving recovered commodity values. E&P Waste Treatment, Recovery and Disposal revenues climbed 18.8% to $212.9 million, reflecting stronger U.S. drilling-related activity. Intermodal and Other revenues increased 15.4% to $48.4 million.

Management highlighted a 12% year-over-year increase in recycling-related revenues on an organic basis, supported by higher old corrugated container values. Landfill gas sales rose 35%, driven by higher renewable natural gas (RNG) generation and renewable fuel credit values.

WCN's Margin & Cost PictureAdjusted EBITDA increased 7.9% year over year to $895.8 million. The adjusted EBITDA margin expanded 20 basis points to 34%. Underlying margin expansion was 50 basis points, reflecting favorable pricing relative to costs, improved employee retention and record safety performance.

Higher diesel costs reduced the margin by approximately 30 basis points. Excluding this impact, the adjusted EBITDA margin would have reached 34.3%.

Operating expenses increased 6.7% to $1.50 billion. Selling, general and administrative expenses rose 7.4% to $253.9 million. Reported operating income advanced 23.2% to $541.7 million, partly reflecting substantially lower impairment-related charges than in the prior-year quarter.

Waste Connections' Cash Flow & Balance SheetNet cash provided by operating activities totaled $691.9 million in the quarter compared with $677.4 million a year earlier. The adjusted free cash flow inched up 0.6% to $386.9 million, representing 14.7% of revenues.

For the first nine months of 2026, capital expenditure for property and equipment totaled $893.7 million. WCN also spent $944.4 million on share repurchases and $265.5 million on dividends. The company ended September with $95.7 million in cash and equivalents, and $9.43 billion in long-term debt.

WCN's Growth InvestmentsWaste Connections completed acquisitions representing approximately $130 million in annualized revenues through September, including two West Coast collection franchises acquired during the third quarter. Management highlighted a robust acquisition pipeline and liquidity exceeding $1 billion.

The company continues investing in RNG facilities, recycling automation and artificial intelligence applications. Its initial AI-driven pricing initiative has exceeded expectations, while additional operational applications are expected to contribute more meaningfully to margins beginning in 2028.

WCN also announced a 10% increase in its regular quarterly dividend, marking its 16th consecutive double-digit annual increase.

Waste Connections' 2026 OutlookThe company expects adjusted free cash flow of $1.4-$1.45 billion and capital expenditure of $1.25 billion. The outlook excludes acquisitions that may close during the remainder of the year.

For 2027, management outlined a preliminary framework calling for mid- to high-single-digit revenue growth, normalized underlying solid waste margin expansion and double-digit adjusted free cash flow per share growth. These expectations assume no material change in the economic environment, with the formal outlook scheduled for February.

WCN carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings SnapshotEquifax’s (EFX - Free Report) third-quarter 2026 earnings beat the Zacks Consensus Estimate, while revenues met the same.

EFX’s adjusted earnings were $2.26 per share, up 10.8% year over year. The figure topped the Zacks Consensus Estimate of $2.19 by 3.2%.

Revenues increased 9.6% year over year to $1.69 billion, in line with the consensus estimate.

ManpowerGroup (MAN - Free Report) reported mixed third-quarter 2026 results, with adjusted earnings meeting the Zacks Consensus Estimate and revenues missing expectations.

MAN's adjusted earnings of $1.01 per share were in line with the consensus estimate and increased 22% year over year.

Revenues of $4.84 billion lagged the consensus estimate of $4.91 billion by 1.4% but increased 4% year over year (5% in constant currency).

Elon Musk's Space Exploration Technologies (SPCX +0.54%) recently published its third-quarter earnings report. Revenue soared 161% year over year to $14.6 billion while the company generated $4.4 billion in net income.

A closer examination of SpaceX's financials revealed an unusual contributor to its profitability. The company recorded a $561 million investment gain from another Musk-controlled business, The Boring Company.

SpaceX is not alone when it comes to benefiting from an investment in another company. Earlier this year, Alphabet (GOOGL -0.68%) (GOOG -0.88%) reported a material investment-related gain following SpaceX's initial public offering (IPO).

Understanding these transactions illustrates an important nuance between accounting profits and the cash generated from an underlying business.

Image source: Getty Images.

How an outside investment boosted SpaceX's profits The Boring Company is Musk's tunneling and transportation venture, which aims to build underground infrastructure that alleviates traffic congestion. While the business is not as well- known as SpaceX or Tesla, it was actually responsible for a meaningful addition to SpaceX's reported earnings during the third quarter.

Last month, The Boring Company raised $3 billion in a financing round that valued the business around $20 billion. Since SpaceX owns equity in The Boring Company, the new valuation became an updated benchmark for valuing the investment.

Under generally accepted accounting principles (GAAP), companies are required to book changes in the value of their equity investments even if those investments have not yet been sold. As a result, SpaceX recorded a $561 million unrealized gain under Other income in the third quarter.

To put that figure into perspective, the gain was equivalent to about 12.7% of SpaceX's $4.4 billion in total net income. It's important to understand that SpaceX did not actually receive $561 million in cash from this transaction. The company simply recognized an increase in the estimated value of an external investment.

SPCX Space Exploration Technologies$148.28+$0.79 (+0.54%)

NASDAQ · As of 1:43 PM ET 10/26/26

Alphabet benefited from a similar accounting phenomenon In 2015, Google joined Fidelity in an investment in SpaceX. In Alphabet's second-quarter earnings report, the company's income statement showed a $98 billion increase in Other income -- boosting net income to $112.2 billion. According to notes in its 10-Q filing, Alphabet disclosed that Other income consisted primarily of "unrealized gains in our equity securities portfolio from SpaceX and a private company."

Forget net income, focus on this instead These examples highlight why investors shouldn't evaluate profitability solely on net income. Accounting gains can make earnings appear strong during one quarter, even if those gains don't actually reflect improvements in a company's underlying operations.

For SpaceX, the more useful profitability measurement is operating income. SpaceX generated $2.8 billion in operating income during the third quarter, reversing an operating loss of $273 million during the year prior.

With that said, SpaceX's spending plans tell an equally important story. The company spent $19.6 billion in capital expenditures (capex) during the third quarter alone, primarily supporting AI infrastructure, Starship development, and satellite production. SpaceX CFO Bret Johnsen guided between $35 billion to $40 billion in capex for the fourth quarter, suggesting SpaceX is not going to slow down its infrastructure buildout.

The reason behind the accelerating spend is telling. In recent weeks, SpaceX agreed to acquire nationwide 800 MHz wireless spectrum from Grain Management, which could help Starlink expand into traditional cellular connectivity. Meanwhile, the company is also considering deploying smaller radios on existing Starlink installations and cellular towers, potentially reducing external reliance on incumbent telecommunications infrastructure.

This creates an interesting dilemma for SpaceX investors. The company is pursuing a number of opportunities across AI infrastructure, space exploration, satellite communications, and wireless connectivity, but each of these initiatives requires additional capital.

Ultimately, SpaceX didn't do anything inherently improper by recognizing gains from The Boring Company. Investors should understand that a company's reported profit doesn't always tell the whole story, though. Understanding where earnings originate, how much cash flow the underlying businesses generate, and how much capital is required to sustain future growth is more essential when evaluating long-term investment opportunities.

NEW YORK, Oct. 26, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Alphabet Inc. (NASDAQ: GOOGL, GOOG) that a securities class action is pending on behalf of persons and entities that purchased or otherwise acquired Alphabet securities between May 19, 2026 and July 16, 2026. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

The promise was a June launch. The reality, according to a July 16, 2026 Bloomberg report, was a flagship model "months behind schedule." In response, Alphabet Class A and Class C shares both reportedly fell about 4.4%. The last day to move for lead plaintiff is December 1, 2026.

The Promise: A June Launch, Stated Twice

At the Google I/O developer conference on May 19, 2026, management told the audience to give the Company until the following month to deliver Gemini 3.5 Pro. On a June 3, 2026 Special Investor Call focused on AI-driven growth, the company projected the same June arrival, noting that the Gemini 3.5 Flash variant was already available.

Promise vs. Actual: By the Numbers

Launch window: June 2026 was promised on May 19 and again on June 3. On July 16, Bloomberg reported the model was "months behind schedule" due to ongoing coding efforts.Training progress: Investors heard the model was improving over prior versions. Bloomberg reported that a late-June update to the training data, aimed at improving the model's skills, produced results that were "disappointing."July 22, 2026: On the second quarter call, management said only that Gemini 3.5 Pro was "currently in testing," offering no launch date, customer adoption, or financial impact details.September 30, 2026: As Google announced Gemini 4 Argon, Reuters reported that "Google no longer plans to release Gemini 3.5 Pro."Class Period window: May 19 to July 16, 2026, opening with the first June promise and closing on the day of the Bloomberg report. What the Lawsuit Alleges About the Alphabet Promise-Reality Gap

The complaint alleges that management failed to disclose that Gemini 3.5 Pro was delivering disappointing training results and that, as a result, its launch would be significantly delayed, leaving the Company's positive statements materially misleading or without a reasonable basis. Plaintiffs further contend the June timeline statements carried no meaningful cautionary language. The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in the U.S. District Court for the Northern District of California.

"Alphabet told the market to expect Gemini 3.5 Pro in June, yet the complaint alleges disappointing training results undercut that timeline. Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections." -- Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until December 1, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the Alphabet Lawsuit

Q: What specific misstatements does the Alphabet lawsuit allege? A: The complaint alleges Alphabet Inc. made materially false or misleading statements regarding the development progress and expected June 2026 launch timeline of its flagship AI model, Gemini 3.5 Pro, during the Class Period. When Bloomberg reported on July 16, 2026 that the model was months behind schedule and that recent training data updates had produced disappointing results, the stock price declined sharply.

Q: When did Alphabet allegedly mislead investors? A: The Class Period runs from May 19, 2026 to July 16, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: How much did Alphabet stock drop? A: Shares fell approximately 4.4%, a decline of $16.46 per share for Class A stock (GOOGL) and $16.39 per share for Class C stock (GOOG), after Bloomberg reported on July 16, 2026 that Gemini 3.5 Pro was months behind schedule and that training data updates had produced disappointing results. Investors who purchased shares during the Class Period at allegedly artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What do Alphabet investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.

Q: What if I already sold my Alphabet shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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Microsoft Chief People Officer Amy Coleman. Microsoft Microsoft is offering buyouts, according to a memo Chief People Officer Amy Coleman sent to employees Monday.

"The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman wrote.

Microsoft's voluntary exit offer is the company's latest attempt to slim its workforce without another round of involuntary cuts. After spending heavily on AI infrastructure and reducing headcount this year, Microsoft is offering remaining employees a chance to leave, testing whether voluntary departures can cut costs.

Eligible employees in the U.S., Canada, India, and the U.K. at level 70, which includes senior leaders at the company, and below, will receive an email later Monday with the terms of the offer. Only some teams are participating, excluding sales organizations, some engineering, and some corporate functions.

Around 60,000 employees — or more than a quarter of the company's workforce — about will be eligible, a spokesperson told Business Insider, and the terms will be similar to Microsoft's standard severance.

Amazon cuts 14,000 corporate jobs amid AI restructuring

The US severance package offered when Microsoft laid off employees earlier this year included a minimum of 60 days of base pay, during which employees will remain on the payroll, and, for most employees, up to a maximum of 39 weeks of base pay, based on seniority and tenure.

Employees at internal levels 64 and below received one week of base pay per six months of service, for example, and employees at levels 65 to 67 will receive two weeks of base pay per six months of service, according to offers reviewed by Business Insider.

Eligible employees will have until early December to decide whether to take the offer and exit at the end of the year, and there are no plans for another buyout at this time, Microsoft's spokesperson said.

The buyout offer follows Microsoft's Voluntary Retirement Program, which offered a retirement buyout to about 9,000 eligible employees based on age and tenure.

About one-third of eligible employees took the buyout, in line with expectations, a person familiar with the turnout told Business Insider in June. That buyout allowed Microsoft to lay off a lower percentage of its workforce compared to last year, the person said at the time.

Read the memo:Introducing a Voluntary Exit Offer

Today, we're introducing a new Voluntary Exit Offer (VEO) to eligible employees within participating organizations. This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating orgs another way to adapt their workforce to changing needs.

The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter. This builds on what we learned earlier this year through the Voluntary Retirement Program.

What employees should know

This offer will be available to eligible employees in participating teams in Canada, India, United Kingdom and United States at level 70 and below. This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources. Some organizations are providing the Voluntary Exit Offer, and some are not. Participation varies based on each business's priorities, customer commitments, and workforce needs.

Eligible employees will receive an email with a link to their Voluntary Exit Offer details within the next few hours.

Looking ahead

The Voluntary Exit Offer is new for us. We'll learn from it. At the same time, we'll keep helping people focus on the work that matters most, build new skills, and, where it makes sense, find new opportunities across Microsoft. There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we're trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute.

My promise is to continue to provide clarity, listen and learn, and keep improving.

Thank you for everything you continue to do for our customers, Microsoft, and for one another.

Amy

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Microsoft Layoffs Enterprise Software More Artificial Intelligence Cloud Computing

Key Takeaways Citigroup raises its 2026 RoTCE outlook above 11% after delivering 11.5% in Q3.Services and Wealth revenues grew 15% each, while Markets and Banking revenues rose 6% y/y.Profitability improved as the efficiency ratio fell to 58.5%, aiding its 11-13% RoTCE target for 2027-2028.
Citigroup Inc. (C - Free Report) raised its 2026 return on tangible common equity (RoTCE) outlook to above 11% from the earlier mentioned 10-11%, reflecting improving profitability, broad-based revenue growth and progress in its transformation initiatives. The upward revision follows a solid third-quarter performance, supported by strong business momentum and improving operating efficiency. In the third quarter of 2026, Citigroup reported an RoTCE of 11.5%, up 350 basis points (bps) year over year, although the comparison benefited partly from a goodwill impairment recorded in the prior-year period.

Citigroup's improving profitability is primarily driven by strong performances across its core businesses. In the third quarter, Services revenues increased 15% year over year to $6.6 billion, aided by higher deposit balances, improved deposit spreads and fee growth. The segment delivered an impressive RoTCE of 31.2%, underscoring its importance as a key profitability driver. Wealth revenues also jumped 15% to $3.3 billion, supported by robust investment activity, while Markets and Banking revenues increased 6% each. Continued momentum across these businesses should support revenue diversification and higher returns.

Citigroup's ongoing restructuring and simplification initiatives are gradually translating into improved operating efficiency. Third-quarter operating expenses declined 2% year over year to $14 billion, although they increased 3% excluding the prior-year goodwill impairment. Nevertheless, the efficiency ratio improved to 58.5% from 64.7% a year earlier, reflecting better operating leverage. Continued investments in technology, automation and process simplification, along with progress on the Banamex divestiture, should help streamline operations and enhance profitability over time.

Nonetheless, elevated transformation-related costs, regulatory requirements and execution risks associated with restructuring remain potential headwinds. Sustaining revenue growth while containing expenses will be crucial for achieving the company's longer-term profitability targets.

Overall, Citigroup's upwardly revised RoTCE outlook signals that its multi-year turnaround is gaining traction. Strong momentum in higher-returning businesses, improving operating efficiency and disciplined capital allocation are strengthening its profitability trajectory. While execution challenges persist, continued progress on simplification initiatives and expense discipline should position Citigroup to achieve its RoTCE target of 11-13% in 2027-2028 and move closer to its medium-term goal of 14-15%.

RoTCE Targets of Other BanksSimilar to Citigroup, several leading banks, including Bank of America (BAC - Free Report) and Citizens Financial Group, Inc. (CFG - Free Report) , have established medium-term RoTCE targets, supported by growth initiatives and operational improvements.

Citizens Financial expects return on average tangible common shareholders’ equity of 16-18% over the medium term. Citizens Financial expects to achieve this objective through the execution of its strategic initiatives, supported by anticipated net interest income tailwinds between 2025 and 2027.

Bank of America also aims to deliver a medium-term RoTCE of 16-18%. Bank of America’s strategy is underpinned by sustainable revenue growth, disciplined expense management and deeper client engagement, reinforcing a credible path to achieving its profitability target.

C’s Price Performance, Valuation & EstimatesShares of Citigroup have jumped 19.4% in the past year compared with the industry’s growth of 3.3%.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 9.42X, below the industry’s average of 12.13X.

Price-to-Earnings F12M
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 43.5% and 14.5%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend
Image Source: Zacks Investment Research

Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.