Speaking at the earnings call after reporting second-quarter results, CEO Robert Isom commented about inflation-adjusted airfares.
“Real airfares are still lower than in 2019,” he said, even as demand continues to strengthen across domestic and international markets. That apparent contradiction helps explain one of the biggest shifts taking place across the airline industry: airlines are increasingly earning more from who is flying rather than simply how much everyone pays for a ticket.
Premium Travelers are Helping American FlyAmerican’s earnings highlighted just how much its business has shifted toward premium travelers.
“So it’s nearly half of our ticketed revenue on roughly 30% of our seats. And the thing we’re really excited about is nearly 60% of our revenue comes from households making $150,000 or more,” Nathaniel Pieper, Chief Commercial Officer chimed in.
The customer mix tells a similar story. According to the company, nearly 60% of ticket revenue now comes from households earning more than $150,000 annually, a customer base management believes is likely to remain resilient even during periods of economic uncertainty.
To capitalize on that trend, American is expanding premium seating faster than economy seating through new aircraft deliveries and cabin retrofit programs while investing in lounges, upgraded onboard products and, beginning in 2027, Starlink high-speed Wi-Fi.
Strategy at WorkThe strategy appears to be working. Premium unit revenue increased more than 13% year over year, outpacing growth in the main cabin, while managed corporate revenue climbed 26%. The airline also reported a five-percentage-point increase in customers upgrading from Basic Economy to Main Cabin after making changes to its fare offerings.
The result is a business model that’s becoming less dependent on raising economy ticket prices. Instead, airlines are increasingly generating incremental revenue from premium cabins, loyalty programs, co-branded credit cards, paid upgrades and higher-spending travelers.
It’s also helping mitigate the brunt of rising fuel costs. “In the second quarter, fuel expense increased by over $2.2 billion, or 83% year over year,” CFO Devon May noted. Isom confirmed how well American is dealing with it. “The second quarter helped offset nearly 50% of the $2.2 billion year-over-year increase in fuel expense.”
This, coupled with the company being able to hold “non-fuel year-over-year unit cost growth to under 3%” have been helping American fly through fuel inflation.
For investors, American’s latest quarter offers a reminder that the industry’s earnings story isn’t simply about higher fares. It’s increasingly about extracting more value from each traveler—even while inflation-adjusted airfares remain below where they were before the pandemic.
Image via Shutterstock
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: AT&T (T - Free Report) Based in Dallas, TX, AT&T Inc. is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. Through its subsidiaries and affiliates, the company offers a wide range of communication and business solutions that include wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale and cloud-based services.
T is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. T has a Momentum Style Score of B, and shares are up 2.4% over the past four weeks.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $2.33 per share. T boasts an average earnings surprise of +6.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, T should be on investors' short list.
Key Takeaways Netflix's global content strategy is expanding audiences, engagement and long-term revenue drivers.More than one-third of viewing comes from non-English programming, aiding acquisition and retention.Members watched over 97 billion hours in first-half 2026 as Netflix expanded its global content pipeline. Netflix’s (NFLX - Free Report) global content strategy is making its growth more durable by expanding its international audience, strengthening engagement and diversifying its revenue and engagement drivers across global markets. The company continues to invest in local-language originals across major markets such as South Korea, India, Spain, South Africa and Mexico, with several regional productions evolving into global hits. Management noted that more than one-third of all viewing now comes from non-English programming, underscoring the increasing role of international content in driving subscriber growth and engagement.
This diverse content portfolio also strengthens multiple revenue drivers. Netflix estimates it has penetrated less than 45% of global households, captured only about 7% of its addressable revenue opportunity and accounts for roughly 5% of global TV viewing, highlighting significant room for international expansion. A broader mix of local and global programming supports this opportunity by improving subscriber acquisition and retention, enhancing pricing power and expanding the advertising business. Importantly, Netflix continues to grow content spending at a slower pace than revenue growth, reflecting disciplined investment as it scales its global library.
Supporting this strategy, Netflix's July 2026 "What We Watched: First Half of 2026" report disclosed that members watched more than 97 billion hours in the first half of the year. Looking ahead, the company continues to strengthen its worldwide content pipeline with new international productions such as Go Team! (Spain), Four Hands, Two Sonatas (South Korea), Operation Safed Sagar (India), Badly in Love Season 2 (Japan) and Nando Between Two Worlds (Brazil), alongside major franchises including Lupin Part 4, The Gentlemen Season 2, Avatar: The Last Airbender Season 2 and Peaky Blinders: The Immortal Man. This balanced mix of successful local originals and global franchises reinforces user engagement and supports more durable long-term revenue growth.
Netflix Faces Stiff Competition From Key RivalsDisney (DIS - Free Report) is challenging Netflix by expanding Disney+ internationally, increasing investment in local content and strengthening its technology. In contrast to Netflix's 'content-first' model, Disney combines globally recognized franchises and cross-platform IP with locally produced original programming. It leverages Disney parks, sports and merchandise marketing to deepen engagement while simultaneously expanding its operations beyond the United States.
Warner Bros. Discovery (WBD - Free Report) competes with Netflix by rapidly expanding HBO Max globally, investing in international launches, and combining its century-old film and television library with local-language original programming. WBD prioritizes curated, high-quality content over sheer volume and leverages iconic franchises and local hits to drive subscriber growth and strengthen global engagement.
NFLX’s Price Performance, Valuation & EstimatesShares of Netflix have declined 26.5% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 21.9% and 11.5%, respectively.
NFLX’s YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 18.43X, higher than the sector’s 16.12X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
Image Source: Zacks Investment Research
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Netflix beat earnings estimates but missed revenue expectations, sending shares lower after its Q2 report.NFLX saw double-digit revenue growth driven by membership, pricing, and increased ad revenues.ETFs like FNGS offer diversified exposure amid shifting streaming investment dynamics. Streaming giant Netflix (NFLX - Free Report) reported mixed second-quarter 2026 results last week. The company narrowly beat its bottom-line estimate but fell slightly short of revenue expectations.
Consequently, NFLX shares pulled back 7.3% on the trading day following the release — a level where the stock has largely hovered since its July 16 announcement — reflecting investor disappointment over the revenue miss and narrowed revenue guidance for 2026.
Meanwhile, Netflix bought back $4.7 billion of its shares in the second quarter — its largest quarterly share repurchases on record — demonstrating strong underlying financial health despite incurring higher cash tax payments tied in part to the Warner Bros. termination fee.
Amid this backdrop, the recent pullback in NFLX’s share price may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. ETFs provide a balanced route to capture Netflix’s long-term growth potential while buffering against the single-stock volatility that often follows quarterly releases.
Before diving into the specific ETFs, let us dig deeper into NFLX’s overall second-quarter performance.
A Brief Analysis of NFLX’s Q2 ResultsNetflix’s second-quarter 2026 earnings beat the Zacks Consensus Estimate by 1.3%. Its revenues missed the consensus mark by 0.1%.
On a year-over-year basis, the company delivered double-digit revenue growth, driven by membership growth, pricing and increased ad revenues.
In terms of engagement quantity, in the first half of 2026, Netflix members watched more than 97 billion hours, reflecting 2% growth year over year. This was slightly faster than the 1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year.
To expand the variety of its entertainment offering, NFLX has been launching new types of content like video podcasts, creators like Danny Go! and Salish & Jordan Matter, and cloud TV games, a trend it aims to continue in the near future as well, to boost viewership.
The company has made notable progress on its cloud-first video game strategy this year, including the addition of several new titles, where the market opportunity is nearly $150 billion in consumer spend, excluding China and Russia.
Netflix has also been witnessing positive growth in its kids section. Netflix Playground, which is NFLX’s app for kids games, has seen 3X growth in daily players since its launch. As a result, engagement in kids' mobile games has risen 600% year over year.
Netflix remains on track to deliver approximately $3 billion in ad revenues by the end of this year.
The company’s earlier announced partnerships with leading publishers including Condé Nast, Hearst, and People are set to bring their lifestyle content to members in the United States and several other countries beginning in August.
ETFs in SpotlightMicroSectors FANG+ ETN (FNGS - Free Report)
This fund, with a market cap worth $557.4 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix accounts for roughly 9% of the fund’s shares.
FNGS has rallied 10.7% over the past year and charges 58 basis points (bps) in fees.
Vanguard Communication Services Index Fund ETF Shares (VOX - Free Report)
This fund, with net assets worth $5.7 billion, provides exposure to 112 companies that provide communications services primarily through fixed-line, cellular, wireless, high-bandwidth, and/or fiber-optic cable networks. Of these, Netflix accounts for 4.21% of the fund’s shares.
VOX has risen 3.4% over the past year and charges 9 bps in fees.
FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (AIUP - Free Report)
This fund, with assets under management worth $4.08 million, provides exposure to 14-20 U.S. large-cap companies included in the S&P 500 Index. Of these, Netflix accounts for 4.37% of the fund’s shares.
AIUP has rallied 7.8% over the past year and charges 70 bps in fees.
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.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: JPMorgan Chase & Co. (JPM - Free Report) Headquartered in New York, JPMorgan Chase & Co. is one of the biggest global banks with assets worth $5.02 trillion and total stockholders’ equity worth $374.6 billion as of June 30, 2026. With operations in more than 60 countries, the company (incorporated under Delaware law in 1968) is one of the largest financial service firms globally.
Since being added to the Focus List on October 10, 2016 at $68.11 per share, shares of JPM have increased 413.73% to $349.9. The stock is currently a #1 (Strong Buy) on the Zacks Rank.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $2.07 to $24.39. JPM boasts an average earnings surprise of 7.3%.
Additionally, JPM's earnings are expected to grow 19.9% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about JPMorgan Chase & Co. (JPM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
JPMorgan Chase & Co. currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 26 recommendations that derive the current ABR, 12 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 46.2% and 7.7% of all recommendations.
The ABR suggests buying JPMorgan Chase & Co., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is JPM Worth Investing In?In terms of earnings estimate revisions for JPMorgan Chase & Co., the Zacks Consensus Estimate for the current year has increased 5.1% over the past month to $24.39.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for JPMorgan Chase & Co. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for JPMorgan Chase & Co may serve as a useful guide for investors.
In its upcoming report, Procter & Gamble (PG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.41 per share, reflecting a decline of 4.7% compared to the same period last year. Revenues are forecasted to be $21.36 billion, representing a year-over-year increase of 2.3%.
The current level reflects a downward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some P&G metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Net Sales- Beauty' will reach $3.88 billion. The estimate suggests a change of +4% year over year.
Based on the collective assessment of analysts, 'Net Sales- Grooming' should arrive at $1.71 billion. The estimate indicates a change of +1.6% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Sales- Corporate' will likely reach $250.59 million. The estimate indicates a year-over-year change of -8.5%.
Analysts' assessment points toward 'Net Sales- Fabric & Home Care' reaching $7.51 billion. The estimate points to a change of +1.7% from the year-ago quarter.
Analysts expect 'Net Sales- Baby, Feminine & Family Care' to come in at $5.12 billion. The estimate indicates a year-over-year change of +0.5%.
Analysts forecast 'Net Sales- Health Care' to reach $2.79 billion. The estimate points to a change of +2.4% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Earnings before income taxes- Beauty' of $714.12 million. The estimate is in contrast to the year-ago figure of $708.00 million.
According to the collective judgment of analysts, 'Earnings before income taxes- Grooming' should come in at $446.33 million. Compared to the current estimate, the company reported $458.00 million in the same quarter of the previous year.
The consensus among analysts is that 'Earnings before income taxes- Health Care' will reach $477.62 million. The estimate is in contrast to the year-ago figure of $487.00 million.
Analysts predict that the 'Earnings before income taxes- Fabric & Home Care' will reach $1.72 billion. The estimate is in contrast to the year-ago figure of $1.75 billion.
The consensus estimate for 'Earnings before income taxes- Baby, Feminine & Family Care' stands at $1.18 billion. Compared to the present estimate, the company reported $1.22 billion in the same quarter last year.
View all Key Company Metrics for P&G here>>>
Shares of P&G have demonstrated returns of -1% over the past month compared to the Zacks S&P 500 composite's +0.6% change. With a Zacks Rank #4 (Sell), PG is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
It would be easy to not notice. The company isn't exactly disrupting the pharmaceutical business, after all. In fact, most investors would struggle to name a single drug the company makes.
Just dig deeper. Last quarter's results may be a glimpse of the growth that Johnson & Johnson (JNJ +1.56%) quietly has in store for patient investors.
Image source: Getty Images.
Cancer drugs to lead growth You probably know the company as the name behind Tylenol, Band-Aid, and talcum powder. Johnson & Johnson actually spun off these consumer-facing brands into a stand-alone business called Kenvue back in 2023, leaving behind a prescription drug and medical device operation that some investors never knew existed. As was noted, most investors might struggle to name even just one of its drugs.
Nevertheless, it's there, and it's growing. Last quarter's operational revenue growth of 5.7% extends Q1's and last year's pace, led by the company's oncology arm, and particularly its cancer-fighting Darzalex, which saw global sales growth of nearly 19% in Q2.
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And that's important. Although its oncology business has been an important profit center for some time, Johnson & Johnson aims to sell at least $50 billion in cancer drugs per year by 2030, making it the biggest name in the business.
For perspective on that figure and its growth, the company is on pace to drive record-breaking revenue of just over $100 billion this year, with roughly $30 billion of that being cancer-related.
The thing is, with its oncology business now persistently growing at a rate in the high teens, Johnson & Johnson can reach this goal, more than offsetting the rapid deterioration of Stelara's sales now that the anti-inflammation drug's patents have expired.
Still a dividend holding, but one being rebuilt to extend an impressive track record This performance still won't qualify J&J as the sort of growth name that most investors envision when looking for a new growth investment. It's still predominantly a dividend-paying value stock, although a very good one. Indeed, with a track record of 64 consecutive years' worth of per-share dividend increases (adjusted for the Kenvue spinoff), it easily qualifies as a Dividend King.
This oncology-driven revenue growth, however, sets the stage for continued dividend increases.
And the underlying opportunity is certainly solid. An outlook from Precedence Research suggests the worldwide cancer treatment market is poised to grow at an average annualized rate of 11.3% through 2035, from $280 billion this year to over $730 billion per year at the end of this time frame. Johnson & Johnson just needs to make sure it continues capturing its fair share of this growth.
Key Takeaways Johnson & Johnson's Innovative Medicine sales rose 6.8% operationally to $16.38 billion in Q2 2026.JNJ's growth was led by Darzalex, Tremfya, Erleada and newer drugs despite Stelara's sharp decline.Johnson & Johnson expects key drugs and new launches to support above-market growth through 2026. Johnson & Johnson (JNJ - Free Report) , via its Innovative Medicine segment, markets a broad portfolio of blockbuster therapies across key areas, including neuroscience, cardiovascular and metabolic diseases, immunology, oncology, pulmonary hypertension and infectious diseases.
J&J’s Innovative Medicines/Pharma segment is the company’s primary growth engine, clearly outperforming its MedTech segment, despite the impact of biosimilar and generic competition on sales of some key drugs like Stelara, Remicade and Zytiga.
J&J’s Innovative Medicine Segment’s Q2 PerformanceJ&J’s Innovative Medicine segment delivered another quarter of healthy operational growth in the second quarter as sales rose 6.8% on an operational basis (excluding the impact of currency) to $16.38 billion.
On an organic basis, sales rose 6.9% despite the loss of exclusivity (“LOE”) of the multi-billion-dollar product, Stelara.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Zytiga.
Sales of blockbuster multiple myeloma treatment, Darzalex, rose 18.9% to $4.21 billion in the quarter. Tremfya remained another key growth driver, with sales rising 72.5% to $2.05 billion. Erleada sales increased 9.5% to $995 million.
Stelara’s sales fell 55.2% to $740 million. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 760 basis points and total revenues by 460 basis points in the second quarter.
J&J’s Innovative Medicine Segment’s Outlook for H2J&J expects its Innovative Medicine segment to remain a key growth driver in the second half of 2026. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada, as well as increased contribution from new launches like Icotyde, Rybrevant and Inlexzo, which can offset the ongoing impact of Stelara biosimilar competition. On the second-quarter conference call, J&J said that it is seeing strong launches of all these new drugs, Inlexzo, Icotyde and Imaavy.
However, other than the Stelara LOE impact, J&J expects generic impact for both Simponi and Opsumit to begin in 2026 as the drugs lose patent protection.
Overall, J&J expects continued above-market growth for the Innovative Medicine segment through the remainder of 2026. In fact, Innovative Medicine is expected to remain J&J's primary growth engine for the foreseeable future.
J&J Key CompetitorsImmunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen (AMGN - Free Report) , Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.
JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 26.7% this year compared with 11.8% appreciation of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.07 forward earnings, higher than 18.72 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.65 per share over the past 30 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
Image Source: Zacks Investment Research
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Signage is seen outside of the Food and Drug Administration headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 24 (Reuters) - The U.S. Food and Drug Administration on Friday approved a nonprescription, fixed-dose pill that combines Kenvue's (KVUE.N), opens new tab Tylenol with the nonsteroidal anti-inflammatory drug naproxen for up to 12 hours of pain relief.
Here are some details:
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The pill can be used by adults and children aged 12 and older for headaches, back pain, muscle aches, toothaches, menstrual cramps and minor arthritis pain.
The FDA said the approval aligns with Trump's "The Great Healthcare Plan," a federal effort to make more verified safe pharmaceutical drugs available for over-the-counter purchase.
Each pill contains 325 milligrams of Tylenol and 110 milligrams of naproxen sodium.
Tylenol has been under scrutiny after U.S. health officials raised concerns about an alleged link between Tylenol use during pregnancy and autism. There is no firm scientific evidence of such a link.
The debate has also triggered legal action, as Texas sued Kenvue over alleged failures to warn pregnant consumers, and a U.S. appeals court this month revived more than 500 private lawsuits making similar claims.
Kenvue agreed last November to be acquired by Kleenex tissue maker Kimberly-Clark (KMB.O), opens new tab for more than $40 billion. The transaction is expected to close this year.
Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Walt Disney (DIS - Free Report) .
Disney currently has an average brokerage recommendation (ABR) of 1.48, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.48 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 23 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 71.9% and 12.5% of all recommendations.
Brokerage Recommendation Trends for DIS
Check price target & stock forecast for Disney here>>>
While the ABR calls for buying Disney, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is DIS a Good Investment?In terms of earnings estimate revisions for Disney, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.85.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Disney. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Disney.
The past few years have been great for Walt Disney (DIS +2.98%), but not necessarily its shareholders. Despite delivering five consecutive fiscal years of growing revenue -- on widening adjusted net margins in each of the last four -- the stock has lost nearly half of its value in that time.
Even the past year of modestly accelerating revenue growth, box office domination, and skeptics-defying gains at its theme parks hasn't translated to a winning stock chart. Disney shares have fallen 20% over the past 12 months.
The bears may have momentum, but it might not be that way for long. Let's delve into three bearish knocks on Disney, and how the company is better positioned than you might think to bounce back on all fronts. Sit back, pass the popcorn, and let's roll.
Image source: Disney.
1. Hooray for Hollywood Bear thesis: Did you see Moana bomb at the multiplex earlier this month? Disney needs to stop making these sequels and live-action reboots of animated classics and start focusing on original properties.
Bull reality: Moana had a disappointing opening weekend, and it will likely result in a one-time charge down the line. It doesn't mean that the blueprint is toast. Last year's live-action remake was Lilo & Stitch; it was one of just four movies to top $1 billion in worldwide ticket sales.
Disney won't always hit it out of the park. It currently has the country's highest-grossing movie of the year in Toy Story 5, but its next-biggest year-to-date ticket seller is sixth. There are still plenty of major releases in the pipeline at the House of Mouse, including Marvel's Avengers: Doomsday in December, which should be the top draw among 2026 theatrical releases.
There were seven movies in 2024 and 2025 that cleared $1 billion in box office receipts. Disney put out six of them. As an aside, they were all sequels or live-action reboots of existing properties (even the seventh film, China's Ne Zha 2). Disney won't have the same global dominance in 2026, but it's still an indisputable hit factory.
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2. As the turnstiles turn Bear thesis: A theme park vacation isn't for the weak of wallet. Inflationary pressures and factors weighing on international travel can't help in the near term. Didn't you see Comcast warning about softness for its gated attractions in this week's earnings report?
Bull reality: Comcast did warn that it was experiencing softness at its theme parks in June and that weak trend has carried over into the first few weeks of this quarter. Disney and Comcast compete in the same two U.S. markets of Central Florida and Southern California. The situation could pose some near-term challenges, but Disney isn't Comcast.
Comcast may have opened Epic Universe in Orlando last year, but in the process, it has neglected its legacy parks. It's now been a little over five years since it added a major, well-received attraction (Velocicoaster at Islands of Adventure in June 2021) at its three older Universal Orlando destinations.
Disney is marching to a different beat. Its theme parks held up well over the past year, even when many figured the arrival of Epic Universe would crush the industry leader. With Disney and Comcast currently undergoing major additions in their Florida resorts, the long-term prospects remain strong. Expect Disney to make some major theme park announcements at its D23 expo next month, its first fan event since new CEO Josh D'Amaro took over.
3. Historical value Bear thesis: Disney stock's fall in recent years reflects its weakening fundamentals and difficult operating environment for media conglomerates.
Bull reality: The rebuttal here starts with a simple chart, showing how cheap Disney stock has become.
Disney's business has improved dramatically in recent years. It posted a double-digit net margin in fiscal 2025, something that it hadn't done in six years. Between Disney+ turning profitable two years ago and the swift recovery of its consumer experiences business, Disney is faring much better than its meandering stock chart suggests.
The chart above tracks two earnings-based valuation multiples. The orange line is the P/E ratio for the fiscal year 2026, which ends in two months. The purple line looks out to the new fiscal year that starts in October. Did you know Disney was trading for less than 14 times this year's earnings and just 12 times next year's multiple?
It's a story that isn't really being told. Estimates have inched higher since just before it posted its fiscal second-quarter results in May. Before you argue that analysts are being too optimistic, keep in mind that they have underestimated Disney's earnings in each of its last quarterly updates.
Reels, wheels, and deals? Disney is ready to bounce back in the final five months of 2026.
Lockheed Martin (NYSE:LMT | LMT Price Prediction) reported Q2 EPS of $7.94 versus $7.199 expected, revenue of $20.06 billion, and a record $230.42 billion backlog.
Shares ripped 10.54% in a single session and are up 18.95% year to date. Can LMT push through to $700 per share by 2027?
What Was Holding Lockheed Back Coming into 2026, LMT was the sick man of large-cap defense. Q1 was a miss, EPS $6.44 versus $6.70 expected, and the stock dropped 4.62% on the report. F-35 deliveries collapsed to 19 from 50 a year earlier, and unfavorable adjustments on Heavy Lift ($65 million) and Seahawk ($50 million) reinforced fixed-price program risk eating margins.
Peers ran ahead. General Dynamics hit an all-time high of $381.18 while LMT sat roughly 12% below its 52-week high of $687.50. Analysts at TD Cowen and Jefferies flagged margin pressure and a sector that had gone “out of favor.” With a beta of just 0.113, LMT grinds rather than bounces hard, capping enthusiasm.
Wall Street Sees 6.7% Upside. I Think That’s Too Cautious The Street consensus target sits at $606.68, with 2 Strong Buys, 4 Buys, 14 Holds, and 1 Sell. Our base case model lands at $619.24, an 8.91% upside, with a bull case of $660.34 and confidence rated 0.9, or high.
Both figures anchor to 29% bullish analyst sentiment and 67% neutral. Morgan Stanley raised the firm’s price target on Lockheed Martin to $690 from $653 and keeps an Equal Weight rating on the shares
Management raised full-year EPS guidance to $29.95 to $30.65 and free cash flow to $7 billion to $7.2 billion. Fourteen Holds today is a stale rating.
The Path to $700 Per Share Reaching $700 from today’s price of $568.59 would require a gain of 23.1%. With forward EPS of $31.39, a price of $700 implies a forward P/E of 22x. Our base case of $619.24 already implies 21x means the bold target requires only 1.3x of additional multiple expansion.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lockheed Martin didn't make the cut. Grab the names FREE today.
That is achievable if guidance keeps moving up. CEO Jim Taiclet said the quarter reflected “a $35 billion multi-year contract with the Missile Defense Agency for THAAD” and raised guidance to “accelerated year-over-year sales growth of approximately 8%, driving 28% higher segment operating profit.”
New wins keep landing: a 12-year logistics deal with U.S. Special Operations Command worth up to $10.5 billion and a $1.6 billion F-35 spares order for the U.S. Navy. The primary risk is renewed fixed-price program charges that reset earnings lower.
Where Lockheed Trades Today Versus Its Earnings Power At $568.59 against forward EPS of $31.39, LMT trades at roughly 18x forward earnings. For a business compounding backlog to $230 billion with $2.9 billion of quarterly free cash flow, that is cheap.
Shares sit between the 52-week low of $401.69 and high of $687.50, and the stock has returned 189.98% over ten years. The valuation reset from the Q1 miss has largely been erased, but the multiple has not caught up to the new earnings power the raised guidance implies.
Is $700 Realistic? $700 by 2027 requires a 23.1% gain and about 1.3x of multiple expansion on top of our base case.
Three things need to go right: guidance drifts higher on THAAD, PAC-3, and Precision Strike Missile ramps; F-35 deliveries stabilize and Aeronautics stops absorbing loss adjustments; the pending Ultra Maritime acquisition closes cleanly. A congressional continuing resolution delaying procurement funding would derail it fastest. We’ve outlined the blueprint for how Lockheed Martin could reach $700 in 2027.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Lockheed Martin didn't make the cut. Grab the names FREE today.
Exxon Mobil Holdings (XOM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil and natural gas company is expected to post quarterly earnings of $3.79 per share in its upcoming report, which represents a year-over-year change of +131.1%.
Revenues are expected to be $95.8 billion, up 17.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 14.72% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Exxon?For Exxon, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.01%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Exxon will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Exxon would post earnings of $1.07 per share when it actually produced earnings of $1.16, delivering a surprise of +8.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Exxon doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Ford faces lower Q2 sales and EV weakness, but cost controls, product mix and valuation support its long-term case as investors await clearer guidance.
ToplineFord on Friday issued a recall involving more than half a million of its Bronco SUVs, citing a wiring defect that could start a fire in the engine, according to a regulatory filing—another large-scale recall for the legacy automaker in recent months following a record-setting number of notices last year.
The legacy automaker has recalled more vehicles in the U.S. than any other this year.
Getty Images
Key FactsFord’s recall covers Bronco models manufactured between 2021 and 2026, including some of its Bronco Raptors, according to a National Highway Traffic Safety Administration filing on Friday.
The vehicles may include a defect that may cause a short in the engine compartment’s wiring harness, potentially creating heat or a spark that could result in fire, Ford disclosed to regulators.
Regulators said drivers with affected vehicles may notice smoke in their air vents or a cluster warning message before seeing flames from the passenger side engine compartment area.
Ford said it is aware of at least 15 incidents indicating evidence of a fire originating from the engine compartment wiring harness, though the automaker said it was not aware of any reports of accidents or injuries related to the defect.
Owners will be notified about the recall on Aug. 24, according to regulators, and Ford said they would install a new covering of the wiring compartment for free.
big number60. That’s how many recalls Ford has issued in 2026, by far the most of any automaker, ranking ahead of Chrysler (24), General Motors (19) and Hyundai (19). Ford issued 153 recalls in 2025, the most ever in a single year, involving 12.9 million vehicles, according to federal data. That was more than the next four automakers, including Chrysler (53), Forest River (36), General Motors (28) and International Motors (26), combined.
key backgroundFord's record-setting pace of recall notices has continued into 2026. The automaker recalled more than 4 million vehicles in February, marking one of the largest-ever in U.S. history, over a software glitch in its top-selling F-series trucks. Another 1.4 million F-150s were recalled in April for a defect that may cause the vehicles to downshift unexpectedly, which regulators said could increase the risk of a crash.
further readingForbesFord Recalls 1.4 Million Top-Selling F-150s Over Downshifting IssueBy Ty Roush
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares rose about 3% on Friday morning after the company reported second quarter results that beat Wall Street expectations for adjusted earnings and raised its full-year outlook, despite revenue coming in below forecasts.
The company reported adjusted earnings per share of $1.30 for the quarter ended June 30, ahead of analyst estimates of $1.27 to $1.28.
Total revenue was $34.25 billion, slightly below expectations of about $35.28 billion.
Verizon reported strong subscriber trends during the quarter, adding 184,000 postpaid phone customers, above analyst expectations of 106,000. The company said this marked its strongest consumer Q2 postpaid phone net additions in five years.
Mobility and broadband service revenue increased 2.8% year over year to approximately $23.4 billion, with Verizon forecasting growth to accelerate to around 4% in the fourth quarter of 2026. The company added more than 550,000 total mobility and broadband connections during the quarter, more than double the level from the first half of 2025.
Broadband net additions totaled 348,000 in the second quarter, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Verizon said it now has approximately 17.1 million fixed wireless access and fiber broadband connections.
Following the results, Verizon raised its full-year guidance, now expecting mobility and broadband service revenue growth of 2.5% to 3.0% in 2026.
The company also lifted its adjusted EPS outlook to $4.99 to $5.04, representing year-over-year growth of 6% to 7%, and increased its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” Verizon CEO Dan Schulman said in a statement.
“With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions.”
For the quarter ended June 2026, Verizon Communications (VZ - Free Report) reported revenue of $34.25 billion, down 0.7% over the same period last year. EPS came in at $1.30, compared to $1.22 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $35.31 billion, representing a surprise of -3%. The company delivered an EPS surprise of +2.36%, with the consensus EPS estimate being $1.27.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Retail postpaid ARPA: $168.35 versus the three-analyst average estimate of $162.64.Wireless - Retail Prepaid Connections: 19.35 million versus the three-analyst average estimate of 19.34 million.Churn rate - Total Wireless - Postpaid Phone: 0.9% versus 0.9% estimated by three analysts on average.Wireless - Retail postpaid Connections: 126.62 million compared to the 126.72 million average estimate based on three analysts.Operating Revenues- Wireless equipment revenues: $5.02 billion versus $6.16 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -19.7% change.Operating Revenues- Service revenues and other: $29.23 billion versus the four-analyst average estimate of $29.06 billion. The reported number represents a year-over-year change of +3.5%.Total reportable segments operating revenues: $34.25 billion versus the four-analyst average estimate of $34.98 billion.Operating revenues- Consumer: $26.24 billion versus the four-analyst average estimate of $27.38 billion. The reported number represents a year-over-year change of -1.5%.Operating revenues- Business: $7.16 billion versus $7.45 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change.Operating revenues- Business- Other: $2.58 billion versus the three-analyst average estimate of $2.77 billion.Operating revenues- Business- Wireless equipment: $846 million versus the three-analyst average estimate of $908.48 million.Operating revenues- Consumer- Mobility and broadband service: $19.64 billion versus the three-analyst average estimate of $19.5 billion.View all Key Company Metrics for Verizon here>>>
Shares of Verizon have returned -4.9% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
SummaryVerizon Communications Inc. delivered mixed Q2 results, with revenue missing expectations but record adjusted EBITDA and EPS exceeding forecasts.VZ's dividend remains well-covered, with a Q2 free cash flow payout ratio of 45% and strong operating cash flow supporting ongoing distributions.Despite a significant debt load rising to $165 billion, the net debt-to-adjusted EBITDA ratio stands at 2.5x, which is standard for the sector.Looking ahead, VZ expects 2026 service revenue growth of 2.5-3.0%, adjusted EPS growth of 6.0-7.0%, and free cash flow up 9-10%.Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More » RiverNorthPhotography/iStock Unreleased via Getty Images
This season's Q2 earnings cycle is officially underway. Having already reviewed several major financial institutions that traditionally kick off the reporting period, we are now entering the thick of the season. Today, we turn our attention to our
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. 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.
Verizon Communications Inc. (VZ) Q2 2026 Earnings Call July 24, 2026 8:30 AM EDT
Company Participants
Colleen Ostrowski - Senior Vice President of Investor Relations
Daniel Schulman - Director & CEO
Anthony Skiadas - Executive VP & CFO
Conference Call Participants
Sean Diffley - Morgan Stanley, Research Division
Michael Rollins - Citigroup Inc., Research Division
John Hodulik - UBS Investment Bank, Research Division
Michael Ng - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Good morning, and welcome to Verizon's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.
I would now like to turn the call over to Colleen Ostrowski, Senior Vice President, Investor Relations.
Colleen Ostrowski
Senior Vice President of Investor Relations
Thanks, Brad. Good morning, and welcome to our second quarter 2026 earnings call. I'm Colleen Ostrowski, and on the call with me this morning are our Chief Executive Officer, Dan Schulman; and Tony Skiadas, our CFO.
Before we begin, I'd like to point you to our safe harbor statement, which can be found in the earnings presentation and on our Investor Relations website. Our comments this morning may include forward-looking statements, which are subject to risks and uncertainties. Factors that may affect future results are discussed in our SEC filings. This presentation also contains non-GAAP financial measures, and you can find reconciliations of these measures in the materials on our website.
As a reminder, on June 29, 2026, we filed an 8-K with the Securities and Exchange Commission, which disclosed our agreement to form a joint venture with BT Group plc to combine our international wireline businesses. As such, the net assets that Verizon will contribute to the JV are now classified as assets and liabilities held for sale and have been moved from Verizon Business Group to Corporate and
(Kitco News) - Gold's inability to hold gains above $4,100 an ounce continues to highlight near-term downside risks. However, an expert at the world’s largest asset manager continues to recommend investors maintain some exposure to the precious metal.
In his latest note on gold, Russ Koesterich, Portfolio Manager for BlackRock Global Allocation Strategy, said that although gold has fallen out of favor among investors who are now focused on strong earnings and cash flow, the long-term case for holding the precious metal remains intact.
Koesterich noted that after a strong start to the year, gold prices have fallen about 25% from their all-time high in January and are down about 7% for the year. He explained that gold’s historic rally at the start of the year reshaped its role in investors' portfolios. Because of its strong momentum, gold became less of a safe-haven asset.
“Rather than providing downside protection, gold added risk to a portfolio,” he said.
However, he added that the eventual shift in momentum only partly explains the sharp, months-long correction.
He pointed out that the primary driver behind gold’s decline has been renewed strength in the U.S. dollar.
“Despite increasing chatter of a ‘debasement trade,’ the dollar has rallied sharply since the January lows, with the Dollar Index (DXY) up more than 6%. Concerns over a global energy shock, a resilient U.S. stock market and a dramatic reversal in expected Federal Reserve policy have all led to a stronger dollar,” he said. “As the dollar has risen, so have long-term interest rates, especially real or inflation-adjusted rates. Real 10-year yields, derived from the TIPS market, have gone from around 1.65% in early March to 2.20% today. This shift in the rate regime has been another obstacle for gold.”
He added that another important headwind is the fact that gold “is not an AI stock.”
“Even within the stock market, performance has increasingly been driven by an increasingly small set of AI companies experiencing outsized earnings growth. As an asset with no earnings, investors are treating gold the same way they’re treating slow-growth, stable companies, by basically ignoring it,” he said.
Despite these headwinds, Koesterich said the precious metal still plays an important role in diversified portfolios.
“The structural reasons to hold gold remain intact. Debt and deficits remain at historic levels, debasement remains a long-term risk and while gold did not work in March, geopolitics have not become any more stable. All of which still argues for maintaining a modest gold position in portfolios,” he said.
Gold is looking to end the week with modest gains as it continues to consolidate near critical support levels. Spot gold last traded at $4,074.70 an ounce, up 1.45% from last Friday’s close.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
In its upcoming report, Starbucks (SBUX - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.66 per share, reflecting an increase of 32% compared to the same period last year. Revenues are forecasted to be $9.44 billion, representing a year-over-year decrease of 0.2%.
The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Starbucks metrics that are commonly monitored and projected by Wall Street analysts.
The consensus among analysts is that 'Net Revenues- Company-operated stores' will reach $7.52 billion. The estimate indicates a change of -3.7% from the prior-year quarter.
Analysts forecast 'Net Revenues- Licensed stores' to reach $1.24 billion. The estimate points to a change of +12.3% from the year-ago quarter.
The consensus estimate for 'Net Revenues- Other' stands at $624.43 million. The estimate indicates a change of +16.1% from the prior-year quarter.
Analysts' assessment points toward 'Net Revenues- Channel Development' reaching $558.27 million. The estimate indicates a change of +15.4% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Revenues- North America' will likely reach $7.29 billion. The estimate indicates a change of +5.3% from the prior-year quarter.
The average prediction of analysts places 'Net Revenues- Company-operated stores- International' at $920.14 million. The estimate points to a change of -39.7% from the year-ago quarter.
According to the collective judgment of analysts, 'Net Revenues- Licensed stores- International' should come in at $535.29 million. The estimate indicates a year-over-year change of +15.1%.
Analysts predict that the 'Net Revenues- Licensed stores- North America' will reach $649.92 million. The estimate points to a change of +1.5% from the year-ago quarter.
It is projected by analysts that the 'Total Stores' will reach 39,717 . The estimate is in contrast to the year-ago figure of 41,097 .
Based on the collective assessment of analysts, 'Total Stores - International' should arrive at 22,912 . Compared to the current estimate, the company reported 22,363 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Total Company-operated stores EOP' of 15,643 . Compared to the present estimate, the company reported 21,730 in the same quarter last year.
Analysts expect 'Total Licensed stores EOP' to come in at 23,660 . Compared to the present estimate, the company reported 19,367 in the same quarter last year.
View all Key Company Metrics for Starbucks here>>>
Over the past month, shares of Starbucks have returned +0.1% versus the Zacks S&P 500 composite's +0.6% change. Currently, SBUX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SBUX heads into Q3 earnings with improving traffic, loyalty momentum and product innovation, while investors await greater clarity on near-term growth.
Colgate-Palmolive (CL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis consumer products maker is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +3.3%.
Revenues are expected to be $5.35 billion, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Colgate-Palmolive?For Colgate-Palmolive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.78%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Colgate-Palmolive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Colgate-Palmolive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Consumer Products - Staples industry, Procter & Gamble (PG - Free Report) , is soon expected to post earnings of $1.41 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -4.7%. This quarter's revenue is expected to be $21.36 billion, up 2.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for P&G has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.23%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
For most of the AI boom, investors have sorted semiconductor companies into neat categories.
NVIDIA Corp. (NASDAQ:NVDA) dominated AI accelerators.
Qualcomm Inc. (NASDAQ:QCOM) stayed trapped in the “smartphone chipmaker” bucket.
Citrini Research argues that classification may soon become outdated. The business underneath Qualcomm is turning into something else.
• Qualcomm stock is showing weakness. Why is QCOM stock trading lower?
Qualcomm Is Trying To Attack AI’s “Memory Wall”In the latest edition of its Citrini Semis Substack, Citrini Research highlighted that Qualcomm’s transformation extends far beyond smartphones.
The firm said the company is making a credible push into AI infrastructure — a market many investors still aren’t pricing in.
Instead, it’s attempting to solve one of artificial intelligence’s biggest bottlenecks: the exploding cost of moving data between memory and processors.
The investment thesis doesn’t revolve around another AI accelerator.
It revolves around architecture.
Citrini argues that today’s AI infrastructure faces a growing “memory wall,” where processors have become dramatically faster while memory bandwidth struggles to keep up.
High-bandwidth memory has become the industry’s preferred solution, but soaring costs are creating incentives to pursue alternative architectures.
“HBM isn’t an immutable requirement, it’s just the industry’s current answer to the cost of moving enormous amounts of data back and forth between memory and the accelerator,” Citrini wrote.
The firm believes Qualcomm’s newly introduced High Bandwidth Compute (HBC) architecture could become one of those alternatives.
Instead of relying on traditional HBM packaging, Qualcomm places compute directly beneath LPDDR memory, reducing data movement while avoiding expensive advanced packaging technologies.
According to Qualcomm executive Tony Pialis, the architecture delivers significantly higher bandwidth efficiency while reducing power consumption.
If successful, Qualcomm wouldn’t simply be selling another AI chip.
It would be attacking one of AI infrastructure’s largest cost centers.
Why Investors Should Focus On 2029, Not Next QuarterSkeptics argue that Qualcomm’s data center business remains years away from contributing meaningful revenue.
Citrini acknowledges that point but says investors are focusing on the wrong timeline.
Citrini acknowledges that production timelines remain early, with AI200 systems arriving this year and larger hyperscaler deployments expected later this decade.
Semiconductor stocks are routinely valued years ahead of realized earnings, and the firm said 2028 and 2029 are “precisely the year we are putting multiples on this.”
Qualcomm does not need billions in AI revenue today. It needs investors to believe those revenues are becoming credible.
The pieces have been bought rather than built.
Qualcomm closed a $2.3 billion acquisition of Alphawave in December and agreed in June to buy AI software firm Modular for roughly $3.9 billion.
Where Does Wall Street Stand?According to Benzinga Analyst Ratings, the consensus on Qualcomm is Neutral, with an average price target of $207.93. That implies roughly 22% upside from the July 22 close of $171.11, with targets running from $100 to a Street-high $300.
Qualcomm reports fiscal third-quarter results on July 29.
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Analysts on Wall Street project that Qualcomm (QCOM - Free Report) will announce quarterly earnings of $2.22 per share in its forthcoming report, representing a decline of 19.9% year over year. Revenues are projected to reach $9.71 billion, declining 6.3% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Qualcomm metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenues- QCT' stands at $8.26 billion. The estimate indicates a change of -8.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- QTL' should arrive at $1.25 billion. The estimate suggests a change of -5.3% year over year.
Analysts forecast 'Revenues- QCT- Automotive' to reach $1.49 billion. The estimate points to a change of +51.4% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- QCT- Handsets' reaching $4.92 billion. The estimate points to a change of -22.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- QCT- IoT (internet of things)' of $1.83 billion. The estimate indicates a change of +9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Reconciling items' will likely reach $141.00 million. The estimate points to a change of +161.1% from the year-ago quarter.
Analysts expect 'Income / (loss) before taxes- QTL' to come in at $854.11 million. Compared to the present estimate, the company reported $942.00 million in the same quarter last year.
Analysts predict that the 'Income / (loss) before taxes- QCT' will reach $1.99 billion. Compared to the current estimate, the company reported $2.67 billion in the same quarter of the previous year.
View all Key Company Metrics for Qualcomm here>>>
Shares of Qualcomm have experienced a change of -16.5% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), QCOM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Moderna (MRNA - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis biotechnology company is expected to post quarterly loss of $1.97 per share in its upcoming report, which represents a year-over-year change of +7.5%.
Revenues are expected to be $126.65 million, down 10.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 16.85% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Moderna?For Moderna, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Moderna will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Moderna would post a loss of$3.02 per share when it actually produced a loss of -$1.18, delivering a surprise of +60.93%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Moderna doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Medical - Biomedical and Genetics industry, Bristol Myers Squibb (BMY - Free Report) , is soon expected to post earnings of $1.59 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.9%. This quarter's revenue is expected to be $11.67 billion, down 4.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Bristol Myers has been revised 1.1% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.51%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Bristol Myers will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Intel’s (Nasdaq: INTC) earnings landed as a stronger turnaround signal than expected. Revenue jumped 25% to $16.1 billion, ahead of the $14.42 billion estimate and marking the company’s fastest quarterly growth in 15 years. Adjusted EPS of $0.42 doubled expectations, and guidance also came in above Wall Street’s bar, though the stock gave back its initial post-earnings pop during Friday trading. YTD shares are up 163.5%.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite hovered near the flatline Friday as the market tried to steady itself after Thursday’s tech-led selloff. The S&P 500 was roughly flat, while the Dow Jones Industrial Average added 89 points, or 0.2%. All three major averages remained on track for a losing week.
Oil prices remain volatile. Brent crude eased 3% to roughly $97 per barrel after topping $100 earlier this week for the first time since late May, while WTI slipped 2% to trade above $89. The pullback took some pressure off a market that had been wrestling with a fresh spike in Middle East risk, higher energy prices, and rising yields.
Tech earnings are now moving through the tape, and the early read is mixed: Google (Nasdaq: GOOGL) is spending aggressively to stay ahead in AI, while Tesla (Nasdaq: TSLA) gave investors another reason to question the near-term profit story.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Here’s a look at where things stand as of early morning trading:
Dow Jones Industrial Average: 51,766 Up 0.11%
Nasdaq Composite: 25,000 Down 0.55%
S&P 500: 7,403 Down 0.07%
Market Movers Nvidia (Nasdaq: NVDA) CEO Jensen Huang made an appearance on X, using his first post to back open AI models, arguing that AI will transform every industry and be built by every country. He framed open models as a safety, cybersecurity, innovation, and sovereignty issue, adding that “the world needs both frontier closed models and frontier open models.”
Google and Verizon (NYSE: VZ) signed a $1 billion data center infrastructure agreement aimed at expanding AI and cloud capacity. The deal gives Google another enterprise-scale infrastructure partner while Verizon gets a clearer lane into the AI data center buildout.
SpaceX (Nasdaq: SPCX) has become one of the biggest casualties in a space-stock selloff that started before its June 12 debut. The Procure Space ETF (Nasdaq: UFO) peaked in late May, and Bespoke Investment Group recently called the move a “violent crash in space-related stocks.” SpaceX rallied out of the gate, but it entered the public market after the sector’s momentum had already cracked.
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HomeIndustriesTech StocksTech StocksThe company is impressing analysts with its profit performanceJuly 24, 2026, 10:10 a.m. ET
Intel just posted its strongest revenue growth in 15 years — and perhaps that wasn’t even the biggest highlight from its report, according to one analyst.
Seaport Research’s Jay Goldberg wrote that the “standout feature,” in his view, was Intel’s profitability. Pro-forma gross margins topped 40% for the first time since the start of 2024, he said. And Intel’s INTC pro-forma operating margin of 17% was its highest since early 2022, demonstrating to Goldberg that the company’s “high fixed-cost model” has “considerable operating leverage.”
Intel (NASDAQ: INTC) delivered one of its strongest earnings beats in years on July 24, prompting some analysts to revise their Intel stock price targets.
For instance, Seaport Global Securities has raised its Intel stock prediction 2026 from $90 to $125 while reiterating a “Buy” rating, citing strong quarterly results and an improving outlook.
Specifically, the brokerage highlighted that Intel’s return to gross margins were above 40% for the first time in two years, which is seen as a key sign that the company’s turnaround is gaining traction.
Seaport also pointed to management’s decision to increase capital expenditure forecast for 2026 and likely 2027, arguing the chipmaker would not commit without securing meaningful customer demand. Intel’s confirmation that its 14A manufacturing process remains on track seems to support this.
Intel share price YTD. Source: Finbold DA Davidson raises INTC stock price target to $100 DA Davidson also raised its price target on Intel, lifting it from $77 to $100 while maintaining a “Neutral” rating. Analysts noted that the latest quarterly results exceeded Wall Street expectations on both revenue and earnings, which shows the growing importance of the firm’s CPU business.
“We maintain our NEUTRAL rating and raise our price target to $100 from $77 on INTC following strong 2Q26 earnings that were highlighted by a significant beat on top and bottom-line expectations,” DA Davidson wrote.
Moreover, DA Davidson pointed to increased capital expenditure plans as a sign that leadership is continuing to attract new customers as demand for domestic semiconductor manufacturing accelerates in the United States.
Cantor Fitzgerald cuts Intel stock price target Conversely, Cantor Fitzgerald lowered its Intel share price forecast from $150 to $125, albeit while reiterating a “Neutral” rating and stating that the long-term outlook still remains promising.
On the more cautious end, Cantor pointed to uncertainty surrounding Intel’s client computing business, server CPU market share losses, and lack of new customer announcements. In addition, the brokerage also noted ongoing speculation that Intel could pursue an equity raise.
Nonetheless, the firm remains constructive on Intel, especially thanks to its ties to Taiwan Semiconductor Manufacturing (NYSE: TSM), which could strengthen both the company and the U.S. semiconductor industry.
Overall, Cantor concluded that investors are likely not going to be more bullish until Intel shows greater revenue potential in its front- and back-end manufacturing operations.
Featured image via Shutterstock
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Key Takeaways Intel reported Q2 revenue of $16.1B, up 25% year over year, with Data Center and AI revenue up 59%.INTC increased 2026 capital spending to more than $20 billion amid stronger customer demand signals.Intel Foundry revenue reached $5.8 billion as yields, factory scale and Intel 18A production improved. Intel Corporation (INTC - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating demand for AI infrastructure, improving manufacturing execution and increased investment to expand capacity. Management highlighted stronger-than-expected execution while pointing to supply constraints as the key near-term challenge.
The company also raised its capital spending outlook as executives detailed progress across CPUs, foundry operations, advanced packaging and purpose-built silicon.
INTC Expands AI Infrastructure FocusCEO Lip-Bu Tan said Intel is seeing strong demand across products and foundry operations, with AI-driven businesses growing more than 70% year over year. He emphasized that the company’s x86 CPU franchise, packaging technology and wafer network remain central assets.
Tan highlighted improving execution at Intel Foundry, noting that Intel 18A production exceeded internal targets due to better yields, cycle times and wafer starts. He also discussed progress toward Intel 14A development and future customer adoption.
Management positioned advanced packaging and purpose-built silicon as additional growth areas. The company said its design services business revenue nearly tripled year over year, supported by expanding AI-related opportunities.
Intel Sees Strong Server DemandIntel reported second-quarter revenue of $16.1 billion, up 25% year over year, while non-GAAP EPS came in at $0.42 versus the Zacks Consensus Estimate of $0.21. Revenue exceeded the Zacks Consensus Estimate of $14.41 billion.
Data Center and AI revenue reached $6.3 billion, up 59% year over year, driven by hyperscale and enterprise demand. CFO David Zinsner said server demand is outpacing available supply.
The company cited Xeon 6 momentum and expanding demand for AI infrastructure as important contributors. Management said capacity expansion remains critical to meeting customer requirements.
INTC Pushes Foundry Investment PlansZinsner said Intel is increasing 2026 capital expenditures to more than $20 billion due to stronger customer demand signals. Investments will focus largely on manufacturing tools, advanced nodes and packaging capacity.
The company said Intel Foundry revenue was $5.8 billion in the quarter, while operating losses improved sequentially as yields and factory scale increased.
Management stressed that spending decisions remain tied to customer commitments and expected returns. Executives said future investments will be aligned with demand visibility rather than capacity expansion alone.
Intel Navigates Supply ConstraintsIntel said industry-wide shortages in wafers, memory and substrates continue to limit supply. Management expects supply improvements later in the year but noted that demand remains ahead of production capacity.
The company expects third-quarter 2026 revenue of $15.8 billion to $16.8 billion, with non-GAAP EPS of $0.38 and non-GAAP gross margin of 42% at the midpoint.
Executives also noted pressure in the PC market, citing memory constraints and weaker second-half consumption trends. Edge AI deployments and improving product availability provide offsets.
INTC Addresses Analyst ConcernsA Morgan Stanley analyst asked about server market share and competition. Tan said Intel is focused on strengthening its server roadmap through products including Clearwater Forest, Diamond Rapids and Coral Rapids.
A Bernstein analyst questioned client strength and margin impacts. Zinsner explained that pricing, product mix and higher-end demand supported client revenue, while inventory actions affected segment profitability.
A Wells Fargo analyst asked about ASIC growth. Management said the business is approaching a $2 billion run rate and expects further expansion supported by AI-related demand and Intel’s design capabilities.
Intel Sets Path for TransformationIntel’s leadership emphasized continued progress in its operational transformation, with greater focus on execution, customer relationships and manufacturing discipline. Management said the company is building capabilities across computing, foundry and packaging.
The company highlighted collaborations involving Google Cloud, SambaNova and Fortinet as part of its broader AI strategy. These efforts are aimed at expanding Intel’s role in emerging AI workloads.
Executives maintained that supply expansion, technology execution and customer engagement remain the central priorities. The call reflected a strategy focused on scaling AI-related opportunities while improving manufacturing performance.
Zacks Rank and Style Scores SignalsIntel carries a Zacks Rank #1 (Strong Buy), indicating the strongest ranking category in the Zacks Rank system. The Zacks Rank is driven by earnings estimate revisions and can change after analysts update their expectations following reported results.You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has a Value Score of F, Growth Score of C, Momentum Score of B and VGM Score of D. The Style Scores complement the Zacks Rank by evaluating value, growth and momentum characteristics, with higher scores generally representing stronger attributes.
Intel (INTC) posted stronger-than-expected earnings as AI strengthens the company's tech backbone. The stock still fell following Friday's opening bell.
The importance of an earnings report has become almost overstated. However, it’s hard to understate what Intel Corporation NASDAQ: INTC faced heading into its Q2 2026 earnings report. The PHLX Semiconductor Index had fallen roughly 19% from its June 22 peak. Every constituent was in the red. Nearly $2 trillion in sector value had been erased.
Intel Today
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52-Week Range$18.97▼
$142.35Price Target$105.30
The sell-off happened because investors questioned whether AI infrastructure spending can justify the current multiples being assigned to chip stocks. Investors needed Intel's results to answer one question: Is this a healthy reset, or early proof that demand is cracking?
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The headline numbers from the report were encouraging. Revenue hit $16.1 billion, up 25% year-over-year, roughly $1.8 billion above the midpoint of guidance. It was also Intel's fastest growth rate since 2011.
Adjusted earnings per share (EPS) of 42 cents doubled the 21 cents analysts expected. Gross margin expanded to 41.8%, nearly 280 basis points above management's own guide. The stock jumped as much as 12-13% after hours, briefly touching levels above $112.
For a sector trading on fear all month, the earnings report seems to demand a repricing. But the details underneath still leave room for caution.
Data Center Demand Looks Real, Not a Rebound StoryThe clearest signal was in the company’s Data Center and AI Group segment. Revenue jumped 59% year-over-year to $6.3 billion. Management said AI-linked businesses grew more than 70% year-over-year and now make up roughly 70% of total revenue.
Chief financial officer (CFO) David Zinsner told analysts that server CPU demand has improved since last quarter. He pointed to double-digit industry unit growth through 2028. Intel also disclosed 10 long-term supply agreements with customers. Some customers want to lock in pricing. Others are focusing purely on securing volume.
Here's why that matters. Intel said demand is still outstripping available supply. It cited industry-wide shortages of substrates and memory that are expected to persist into next year. That's a different story than the bear case behind July's sell-off, which centered on fears that hyperscalers might pull back AI capital spending. Intel's numbers argue that the bottleneck is hardware supply, not fading demand.
Margins Are Recovering, But Foundry Still Isn't Fully ProvenMargin recovery is another pillar of the bull case, and it's real. Non-GAAP gross margin came in at 41.8% compared to just 29.7% a year ago. For a chip company, that happens because of scale, a richer product mix, and disciplined pricing.
Foundry is where caution still belongs. Intel Foundry revenue rose 31% to $5.8 billion. 18A wafer output grew more than 50% quarter-over-quarter, with yields ahead of internal targets. But external Foundry revenue was just $293 million, which was about 5% of the segment's total. The Foundry operating loss narrowed to roughly $2.1 billion but remains substantial.
Intel landed Fortinet NASDAQ: FTNT as a named foundry customer this week. That's on an older node, though, not the leading-edge 18A business investors need validated. Until a marquee customer commits real volume to 18A or 14A, Foundry will still be a story of internal progress, not proven outside demand.
Guidance Suggests the Beat Wasn't a One-Quarter FlukeIntel guided Q3 revenue to $15.8-$16.8 billion. It guided non-GAAP EPS to 38 cents. Both figures came in well above Wall Street's roughly $15.1 billion and 27 cents estimates. Management also raised its 2026 capital expenditure (CapEx) outlook from $18 billion to more than $20 billion, with 2027 spending set to climb further.
This marks Intel's seventh straight quarter of beating its own outlook. That looks like a management team that has recalibrated expectations lower than what it can actually deliver.
The Tougher Comp Problem AheadIntel has now strung together two quarters of exceptional, AI-fueled growth. The Data Center and AI segment's 59% year-over-year jump follows strong growth last quarter. That makes the next few comparisons much harder.
However, beating a 25% growth quarter against an easy prior-year base is one thing. Beating it again against a quarter that grew 25% is another. Some deceleration in year-over-year growth rates should be expected over the next two or three quarters, even if the underlying business stays healthy. That's not necessarily a red flag, but it does raise the bar for future beats.
Buy the Dip, or Stay Cautious?This report was bullish for INTC. Demand strength, margin recovery, and raised guidance all point to real AI-driven growth. The main unresolved risk is specific to its Foundry business. In that regard, Intel remains a story stock until external 18A customers show up.
Valuation is an interesting wrinkle. Even if the stock pops in the sessions following earnings, Intel wouldn't look expensive against its new earnings power. If anything, shares look modestly undervalued relative to the growth just reported. That's a reasonable setup for patient buyers, but not necessarily one to chase into strength.
Given tougher comps ahead, this looks like a hold rather than a chase. A pullback toward more attractive levels would offer a better entry point. That's not a bearish call on the business. It's a preference for a better price on a company that's proven it can execute.
Intel Corporation (INTC) Price Chart for Friday, July, 24, 2026
For the broader chip dip, Intel's results support the bullish read on demand. Supply constraints, long-term agreements, and raised CapEx all argue the AI buildout isn't stalling. But Intel is one data point in a 30-stock index. The sharpest damage has concentrated in memory and hyper-growth momentum names that don't share Intel's specific demand mix.
Investors reacting to this print have a reasonable case for treating Intel as attractive on a pullback. Diversified semiconductor ETF exposure remains a sensible way to play the broader recovery. Intel's strength doesn't automatically clear every beaten-down chip name of the concerns that drove this sell-off.
Should You Invest $1,000 in Intel Right Now?Before you consider Intel, you'll want to hear this.
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Intel (NASDAQ:INTC | INTC Price Prediction) just delivered its strongest revenue growth in more than 15 years, and our model sees more room to run. The stock trades at $100.23 after a stunning 171.63% year-to-date rally.
Our 24/7 Wall St. price target for Intel is $130.66, implying 30.36% upside over the next 12 months. That earns a buy rating with a 90% confidence level. This is a high-conviction call anchored to a genuine earnings inflection.
Metric Value Current Price $100.23 24/7 Wall St. Price Target $130.66 Upside 30.36% Recommendation BUY Confidence Level 90% The Rally Has Legs After a Blowout Q2 Intel reported Q2 fiscal 2026 on July 23, 2026, and the numbers reframed the story. Revenue hit $16.13 billion, up 25.4% year over year, beating estimates by 11.64%. Non-GAAP EPS came in at $0.42 versus a $0.10 estimate, a 320% surprise. The Data Center and AI segment surged 59% to $6.26 billion, and CEO Lip-Bu Tan called it “our strongest revenue growth in more than fifteen years.”
The stock has cooled off recently, down 24.23% over the past month from a peak of $142.35, but shares are up 326.69% over the past year. That pullback has compressed the valuation multiple relative to peers.
Why Bulls See a Breakout Ahead The bull case rests on three pillars:
AI demand for server CPUs is broadening, and Intel’s Xeon 6 was selected as the host CPU for NVIDIA DGX Rubin NVL8 Intel 18A-P entered risk production on schedule, and Panther Lake is in high-volume manufacturing using ASML High NA EUV tools Intel raised 2026 CapEx to over $20 billion, signaling management confidence echoed by ecosystem partners The $5 billion NVIDIA equity investment and $2 billion SoftBank investment add strategic ballast. If Q3 lands at the high end of guidance ($16.8 billion) with 42% non-GAAP gross margin, a bull-case path to $138.44 becomes credible.
Morgan Stanley analyst Joseph Moore raised the firm’s price target on Intel to $84 from $75 and keeps an Equal Weight rating on the shares.
The Risks Worth Watching The GAAP net loss of $11.03 billion looks ugly, driven by a $12.53 billion non-cash charge on CHIPS Act escrow shares, not operating deterioration. Operating income actually rose 156.55% year over year.
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Intel Foundry is running roughly $2.1 billion in quarterly operating losses, and management flagged that Intel 14A could be paused if customer demand is insufficient. A bear case with Foundry misses and export-control friction points toward the model’s downside scenario of $96.58.
How Intel Compares to AMD and Qualcomm AMD (NASDAQ:AMD) is the natural x86 rival. AMD posted Q1 fiscal 2026 revenue of $10.25 billion, up 37.9%, with Data Center up 57% to $5.78 billion. The stock trades at a trailing P/E of 203 with a market cap of $880 billion. Intel’s forward P/E of 119 looks defensible against that.
Qualcomm (NASDAQ:QCOM) trades at a trailing P/E of 33 with an operating margin of 27.9%. Intel is nowhere near that on profitability yet, but its growth is now double Qualcomm’s. On balance, the peer set makes our $130.66 target look reasonable rather than aggressive.
Company Forward/Trailing P/E Latest Revenue Growth Intel 119x fwd +25.4% AMD 203x ttm +37.9% Qualcomm 33x ttm -3.5% Intel Price Prediction 2026-2030 The 24/7 Wall St. price target is $130.66, the recommendation is buy, and confidence is high. The Q2 earnings inflection combined with sustained AI CPU demand tips the scale. The thesis strengthens if Q3 revenue lands above $16.3 billion with gross margin holding near 42%. The thesis weakens if Foundry losses widen materially or 18A yields disappoint.
Here is where our model projects Intel could trade in the coming years, extending base-case growth assumptions.
Year 24/7 Wall St. Price Target 2026 $130 2027 $148 2028 $170 2029 $192 2030 $214 These projections assume Intel executes on 18A and 14A ramps and Foundry losses narrow steadily. Significant upside could come from anchor foundry customers signing multi-year commitments. Downside would come from a stalled 14A roadmap.
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Key Takeaways Management targets 4-6% revenue growth and 10-12% adjusted operating income growth.FedEx Freight's revenue rose 4.8% as revenue per shipment climbed 11.5% despite lower volumes.Technology and network investments aim to improve freight efficiency, service and connectivity. FedEx Freight ((FDXF - Free Report) ) is entering public markets as a pure-play less-than-truckload carrier at a time when volume growth remains uneven. The company’s investment case now rests on whether pricing, freight mix and internal efficiency can offset softer shipment activity.
That makes FDXF a useful test of the current LTL cycle. Demand may be under pressure, but management is leaning on revenue quality, network density, and technology to protect margins.
FedEx Freight Is Leaning Into Revenue per ShipmentFourth-quarter revenues rose 4.8% year over year to $2.4 billion even as average daily shipments fell 5.9% to 86.7 thousand. The offset came from stronger revenue per shipment, which increased 11.5% to $415.22.
Weight per shipment rose 3% to 948 pounds, while revenue per hundredweight increased 8.2% to $43.79. Those metrics matter because heavier shipments and better yield can help support revenues when freight counts remain under pressure.
FDXF Margin Expansion Depends on Network OptimizationManagement expects medium-term revenue growth of 4-6% and adjusted operating income growth of 10-12%. That gap implies the company is targeting faster profit growth than revenue growth, driven by operating improvements rather than just better demand.
Capital discipline will be central to that plan. The company expects its capital-expenditure-to-revenue ratio to be around 5%, while investments are being directed toward the network, technology and freight-focused operations. Old Dominion Freight Line ((ODFL - Free Report) ), another major LTL carrier, remains a key benchmark for investors watching service quality, pricing discipline and terminal productivity across the category.
FedEx Freight Faces a Cyclical LTL Demand BackdropFDXF serves manufacturers, retailers, distributors and other businesses, leaving it exposed to manufacturing activity, industrial production and business spending. In a slower economy, customers may ship fewer loads, creating pressure on volumes, pricing and margins.
Risks also include inflation, tariff-related uncertainty, geopolitical tension and supply-chain disruption. United Parcel Service ((UPS - Free Report) ), a broad transportation and logistics company, gives investors a wider freight and parcel comparison point when assessing how business spending and trade flows move through the transport sector.
FDXF Technology Spending Could Reshape Freight EfficiencyTechnology is a key part of the standalone strategy. FedEx Freight expects to benefit from technology investments and optimized operations tailored specifically to freight customers.
The opportunity is operational as well as commercial. Dedicated technology spending could improve freight movement, customer service, network planning and supply-chain connectivity. As an independent company, FedEx Freight can focus capital on LTL priorities rather than competing internally with parcel and express operations.
FedEx Freight Ratings Temper the Emerging Trend StoryThe bottom line is that FDXF has a clear margin-improvement path, but the path depends on execution in a cyclical freight market. Pricing and mix helped the latest quarter, while lower shipments show that demand remains a constraint.
The stock currently carries a Zacks Rank #3 (Hold), which reflects a neutral near-term earnings-revision signal. The VGM Score of D and Momentum Score of F point to weak current market characteristics, while the Value Score of C and Growth Score of C suggest a more balanced profile on those two style measures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For investors, the combination argues for patience rather than a one-sided view. FedEx Freight has standalone advantages, scale and a targeted operating plan, but weak momentum and a neutral Rank indicate that earnings-revision support is not yet strong enough to fully validate the margin-growth story.
For the quarter ended June 2026, American Express (AXP - Free Report) reported revenue of $19.64 billion, up 10% over the same period last year. EPS came in at $4.53, compared to $4.08 in the year-ago quarter.
The reported revenue represents a surprise of +0.01% over the Zacks Consensus Estimate of $19.64 billion. With the consensus EPS estimate being $4.41, the EPS surprise was +2.72%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Express performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Network volumes: $516.80 billion versus the four-analyst average estimate of $520.90 billion.Book value per common share: $48.42 compared to the $49.31 average estimate based on two analysts.Billed business - Total: $455.80 billion versus the two-analyst average estimate of $459.77 billion.Total non-interest revenues: $14.99 billion compared to the $15.04 billion average estimate based on five analysts.Net Interest Income: $4.65 billion compared to the $4.67 billion average estimate based on five analysts.Non-interest revenues- Discount revenue: $10.16 billion compared to the $10.09 billion average estimate based on four analysts.Non-interest revenues- Net card fees: $2.86 billion compared to the $2.92 billion average estimate based on four analysts.Non-interest revenues- Service fees and other revenue: $1.96 billion compared to the $1.99 billion average estimate based on four analysts.Total Interest Income: $6.61 billion compared to the $6.69 billion average estimate based on four analysts.View all Key Company Metrics for American Express here>>>
Shares of American Express have returned -0.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Shares of American Express (AXP -5.08%) are down 6.5% at 10:25 a.m. ET. The payment card veteran reported Q2 2026 results last night, beating Wall Street's bottom-line expectations but falling just short of analyst consensus on revenues. The market's focus on a slight revenue miss seems odd, given that management also raised its full-year revenue guidance.
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Q2 by the numbers American Express posted 10% year-over-year revenue growth, landing at $19.64 billion. The average analyst was looking for $19.69 billion. Earnings rose 11% to $4.53 per diluted share. Here, the Street consensus pointed to $4.40 per share.
CEO Stephen Squeri called Q2 "another excellent quarter" with better-than-expected member spending growth. The company raised its full-year revenue growth guidance from 9-10% to 10%. It's a small boost, but half a percent makes a difference when you're managing $456 billion of card charges in a single quarter.
Image source: The Motley Fool.
Growth now, profits later So why are American Express shares plunging today, despite a solid earnings surprise and raised full-year revenue guidance? Well, the additional sales dollars will not trickle down to the bottom line. Management is reinvesting the extra capital into growth-oriented moves.
That's already going on. For example, higher fees for the Platinum Card contributed to the double-digit revenue growth in the first half, but the same program also lifted operating expenses by 12%. That's the cost of offering card perks that customers actually use.
Credit quality remains solid. Provisions for credit losses dropped to $1.1 billion from $1.4 billion a year ago, and the net write-off rate held flat at 2%. Card Member spending growth of 9% marked the highest rate in three years on a currency-adjusted basis.
At 15.9 times forward earnings, with credit quality strengthening and spending growth accelerating, this drop looks like a chance to buy a premium business at a discount. Use cash, not a credit card.
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in American Express. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
American Express AXP stock is in focus this morning after the credit card company reported its fiscal Q2 earnings that told a familiar story of premium strength.
AMEX came in ahead of Street estimates with an 11% year-on-year increase in earnings per share (EPS) to $4.53, while the firm's overall revenue went up 10% in the recent quarter to $19.6 billion.
However, underneath the glittering headline figures lies an increasingly costly structural evolution, one that’s weighing rather significantly on American Express stock on Friday morning.
AMEX added 3 million new proprietary cards during Q2 – with over three-quarters signing up for high-margin, fee-based accounts.
A massive slice of those additions continues to be Gen Z and Millennial consumers.
Yet, as younger cardholders flock to the brand, their enthusiastic adoption of “premium benefits” is turning into a double-edged sword for the company's operational margins.
Note that American Express shares are currently down over 13% versus the start of this year (2026)
American Express’s aggressive push to court younger demographics through refreshed Platinum and Gold card offerings has yielded millions of tech-savvy, lifestyle-focused customers.
However, Gen Z and Millennial cardholders operate differently than legacy members; they actively maximize every credit, travel pass, and dining stipend attached to their accounts.
This drove total quarterly operating expenses up 12% year-over-year.
Customer engagement and variable reward costs surged as airport lounge visits, hotel credits, and lifestyle perks were claimed at record volumes.
The average card member spent $6,759 in the second quarter – up from $6,393 last year – showing high engagement.
However, fulfilling those lifestyle promises requires huge capital. AMEX has successfully hooked a new generation, but funding their premium lifestyle is proving significantly more expensive than anticipated.
Despite beating quarterly profit expectations, AMEX shares dropped more than 5% following the announcement as investors focused heavily on the 12% expense hike.
The read for investors was simple: in a market where financial firms are expected to tighten belts, American Express is actually “accelerating” expenditure to defend its turf against competitors like JPMorgan Chase and Capital One.
Sure, the net write-offs remained comfortably low in the second quarter at 2%, proving credit health remains pristine – but narrowing margins due to a 50% increase in “Card Member Services” costs is becoming harder to ignore.
Market participants are concerned that if younger consumers continue rinsing the perk allowances while broader macroeconomic spending cools, expense growth could persistently beat transaction volume gains.
The ultimate fallout from this costly acquisition strategy was felt in AMEX’s forward guidance.
Strong first-half momentum prompted management to raise its full-year revenue growth outlook to about 10%.
Yet, notably, executives refused to raise the profit target, leaving EPS outlook frozen at $17.30 to $17.90.
That said, Wall Street hasn’t thrown in the towel on AMEX stock, though. Heading into the earnings print, the consensus rating on American Express stood at Overweight with a bullish $378 average price target.
Key Takeaways American Express beat Q2 EPS estimates as revenues rose 10% on stronger Card Member spending and fee growth.AXP reported 9% network volume growth, while credit loss provisions fell 23% due to a reserve release.AXP expects 2026 revenue growth of 10% and reaffirmed EPS guidance of $17.30-$17.90. American Express Company (AXP - Free Report) reported second-quarter 2026 earnings per share (EPS) of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year.
Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. The top line beat the consensus mark by a whisker.
The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
AXP’s Q2 Operational PerformanceNetwork volumes grew 9% year over year in the second quarter to $516.8 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.9 billion. Total interest income of $6.6 billion rose 5% year over year but missed the consensus mark of $6.7 billion. Provision for credit losses came in at $1.1 billion, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 12% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members, the refresh of the U.S. Platinum Card, greater use of Card Member benefits, and higher operating costs.
AXP’s Q2 Segmental PerformancesThe U.S. Consumer Services segment recorded pre-tax income of $2.1 billion, which grew 23% year over year and beat the Zacks Consensus Estimate by 27%. Total revenues, net of interest expenses, improved 11% year over year to $9.5 billion but marginally missed the Zacks Consensus Estimate. An expanding Gen-Z and Millennials’ customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $970 million rose 7% year over year in the second quarter but fell short of the Zacks Consensus Estimate of $972.8 million. Total revenues, net of interest expense, grew 7% year over year to $4.5 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $477 million, which rose 3% year over year but missed the Zacks Consensus Estimate of $908.8 million. Total revenues, net of interest expense, climbed 12% year over year to $3.6 billion but missed the consensus mark of $3.9 billion.
The Global Merchant and Network Services segment’s pre-tax net income of $1.1 billion advanced 7% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 8% year over year to $2.1 billion but came in lower than the consensus mark by 1.2%.
Corporate and Other incurred a pre-tax loss of $569 million in the second quarter, wider than the prior-year quarter’s loss of $550 million.
Balance Sheet (As of June 30, 2026)American Express exited the second quarter with cash & cash equivalents of $45.2 billion, which fell 5.3% from the 2025-end level. Total assets of $308.2 billion increased 2.7% from the figure at the end of 2025.
Long-term debt amounted to $57 billion, up 1.1% from the figure as of Dec. 31, 2025. Short-term borrowing was $2 billion.
Shareholders’ equity of $34.3 billion rose 2.4% from the 2025-end level. Return on average common equity remained flat year over year at 37.8% in the quarter under review.
Capital Deployment UpdateAmerican Express bought back 7 million common shares in the second quarter of 2026 for $2.2 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 OutlookAmerican Express now expects 2026 revenues to increase to 10% from the 2025 level. Management continues to estimate EPS in the range of $17.30-$17.90, the midpoint of which indicates an improvement of 14.4% from the 2025 figure.
AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are Victory Capital Holdings, Inc. (VCTR - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and Newmark Group, Inc. (NMRK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Victory Capital’s current-quarter earnings of $1.81 per share has witnessed five upward revisions in the past 30 days against none in the opposite direction. VCTR’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 6.9%. The consensus estimate for current-quarter revenues is pegged at $386 million, suggesting a 9.9% year-over-year jump.
The consensus estimate for Acadian Asset Management’s current-quarter earnings is pegged at $1.05 per share, which signals 64.1% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-quarter revenues of $179.4 million implies 43.7% year-over-year growth.
The consensus estimate for Newmark Group’s current-quarter earnings is pegged at 39 cents per share, which has witnessed one upward revision in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.1%. The consensus estimate for NMRK’s current-quarter revenues is pegged at $881 million, which implies a 16.1% year-over-year rise.
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For the quarter ended June 2026, Charter Communications (CHTR - Free Report) reported revenue of $13.53 billion, down 1.7% over the same period last year. EPS came in at $10.66, compared to $9.18 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $13.52 billion, representing a surprise of +0.06%. The company delivered an EPS surprise of +7.03%, with the consensus EPS estimate being $9.96.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Charter performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Internet - Total Net Additions/Losses: -172 thousand versus -129.68 thousand estimated by three analysts on average.Video - Total Net Additions/Losses: -21 thousand versus -61.82 thousand estimated by three analysts on average.Video - Small Business - Net Additions/Losses: -10 thousand versus -5.15 thousand estimated by three analysts on average.Residential - Video - Net Additions/Losses: -11 thousand versus the three-analyst average estimate of -56.67 thousand.Revenues- Residential- Total: $10.35 billion versus $10.42 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.Revenues- Commercial- Total: $1.87 billion versus $1.85 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Revenues- Other: $894 million versus the five-analyst average estimate of $836.81 million. The reported number represents a year-over-year change of +6.6%.Revenues- Advertising sales: $416 million compared to the $382.47 million average estimate based on five analysts. The reported number represents a change of +12.1% year over year.Revenues- Residential- Voice: $331 million versus the four-analyst average estimate of $313.86 million. The reported number represents a year-over-year change of -4.3%.Revenues- Residential- Internet: $5.78 billion versus the four-analyst average estimate of $5.85 billion. The reported number represents a year-over-year change of -3.2%.Revenues- Connectivity: $6.87 billion versus the four-analyst average estimate of $6.9 billion.Revenues- Residential- Mobile service: $1.1 billion versus the four-analyst average estimate of $1.05 billion. The reported number represents a year-over-year change of +18.9%.View all Key Company Metrics for Charter here>>>
Shares of Charter have returned -2.4% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Charter Communications has suffered severe share price declines due to intensifying broadband competition, subscriber losses, and persistent debt overhang. CHTR's Q2 results showed ongoing broadband attrition, falling revenue, but resilient cash generation and aggressive buybacks, with leverage stable at 4.2x. Despite cap-ex normalization and a free cash flow yield above 16%, market sentiment remains negative until broadband losses stabilize and debt concerns ease.
Charter Communications, Inc. (CHTR) Q2 2026 Earnings Call July 24, 2026 8:00 AM EDT
Company Participants
Stefan Anninger - Vice President of Investor Relations
Christopher Winfrey - President, CEO & Director
Jessica Fischer - Chief Financial Officer
Conference Call Participants
Craig Moffett - MoffettNathanson LLC
Vikash Harlalka - New Street Research LLP
Steven Cahall - Wells Fargo Securities, LLC, Research Division
Walter Piecyk - LightShed Partners, LLC
Presentation
Operator
Hello, and welcome to Charter Communications Second Quarter 2026 Investor Conference Call. [Operator Instructions] Also as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.
I will now turn the call over to Stefan Anninger.
Stefan Anninger
Vice President of Investor Relations
Thanks, operator, and welcome, everyone. The presentation that accompanies this call can be found on our website, ir.charter.com. I would like to remind you that there are a number of risk factors and other cautionary statements contained in our SEC filings, and we encourage you to read them carefully. Various remarks that we make on this call concerning expectations, predictions, plans and prospects constitute forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results.
Any forward-looking statements reflect management's current view only, and Charter undertakes no obligation to revise or update such statements. As a reminder, all growth rates noted on this call and in the presentation are calculated on a year-over-year basis, unless otherwise specified.
On today's call, we have Chris Winfrey, our President and CEO; and Jessica Fischer, our CFO. With that, let's turn the call over to Chris.
Christopher Winfrey
President, CEO & Director
Thanks, Stefan. During the second quarter, we added over 400,000 Spectrum Mobile lines, making that 1.7 million lines over the last 12 months for growth of 16%. We now have
Charter Communications lost more internet and video subscribers over the second quarter. (Courtesy Charter Communications)
Charter Communications stock was dropping on Friday after the cable operator said more subscribers exited their contracts last quarter, piling on the misery to close out a miserable week for the industry.
