Track market-moving stories before they get noisy

Space Exploration Technologies (SPCX +1.32%) became the largest IPO on record in June. The stock has been highly volatile since, reaching highs of about $225.64 and lows of $104.83. How will the stock perform through the end of the year? That's hard to say. But one particular upcoming catalyst might drag down the share price. Here's what investors need to know.

Image source: The Motley Fool.

The largest single-event stock lockup expiry to dateFirst, a little bit of background. When companies first go public, there are legal restrictions on when insiders can sell their shares. The period before that is called the lockup period. Many corporations first entering public equity markets opt for a set period -- often 180 days -- after which most or all company insiders are free to sell their shares.

SpaceX chose a staggered lockup schedule, meaning various blocks of shares would become eligible for sale over a little more than a year from the IPO date. Lockup expiry dates can present challenges to newly public companies. If insiders sell the corporation's shares in large quantities as soon as they are legally permitted, it could put downward pressure on the stock. SpaceX has faced this challenge on six occasions already. Here's how it has fared so far.

Expiry Date Number of New Shares Available Stock ReactionAug. 6912 millionRose 6% Aug. 20319 millionFell 4%Sept. 9319 millionFell 3.9%Sept. 1059 millionRose 0.4%Sept. 24328 millionFell 0.2%Oct. 9328 millionRose 1%Overall, SpaceX has performed fairly well through its various lockup expiry dates so far. The stock has climbed about 27% since Aug. 6. However, the company is racing toward its largest single-event stock lockup expiry date yet.

Two full trading days after the company reports its third-quarter earnings (SpaceX’s third-quarter update is scheduled for Oct. 20), 1.3 billion new shares will become eligible for sale (328 million new shares will also unlock on Oct. 24).

SPCX Space Exploration Technologies$147.96+$1.93 (+1.32%)

NASDAQ · As of 4:00 PM ET 10/19/26

What should investors do?Will SpaceX stock decline significantly once these new shares become available? It's hard to say. On the one hand, it is the single biggest such event in terms of the number of new shares eligible for sale. But relative to the number of shares already on the market, that's a different story.

On Oct. 6, the number of SpaceX shares eligible for sale more than doubled. It won't increase by that much after the third-quarter update. Whether or not SpaceX stock performs well over the next few weeks will also depend heavily on the company's third-quarter results. SpaceX's revenue grew at a good clip in the second quarter, and its net loss decreased significantly.

The market will be expecting that momentum to continue, and there is a chance that particularly strong results could overshadow the massive lockup expiry event. With that said, should long-term investors purchase SpaceX's shares at current levels? Note that the company's stock price has declined slightly from its $150 opening price, despite strong second-quarter results and meaningful progress on its all-important next-gen rocket, Starship, which recently flew into orbit for the first time in another successful flight test.

SpaceX has also signed additional artificial intelligence compute deals and taken steps that bring it closer to significantly expanding its connectivity business and challenging major mobile carriers, although it still has plenty of work to do on that front.

Why, then, hasn't the stock performed well since its IPO? Probably partly because of valuation concerns. At 200x forward earnings, the market is pricing in significant success from some of SpaceX's ambitions, and the company needs to exceed expectations to hope to sustain above-average returns, with little room for error. That's why I'd stay away from the space company right now.

Could Nvidia (NVDA +1.38%) become a $10 trillion company?

That's a reasonable question to ask. Nvidia sits at the center of the artificial intelligence boom, supplying the chips and systems that power AI data centers. As a result, its revenue and profits have grown at extraordinary rates as companies race to build AI infrastructure.

But I'd be cautious about assuming the stock can keep delivering spectacular returns. My biggest concern is that Nvidia's largest customers are also becoming its competitors. If they succeed in developing their own AI chips, Nvidia could lose some of its pricing power over time.

That matters because Nvidia needs both growth and pricing power to maintain a substantial share of AI computing spending.

Image source: Getty Images.

Nvidia's customers want alternatives Consider Nvidia's biggest customers: Microsoft, Amazon, Alphabet, and Meta.

These technology giants are spending enormous sums building data centers to train and run AI models. To put it into perspective, these four companies are projecting $760 billion in capex this year. Much of that spending benefits Nvidia, which sells the graphics processing units (GPUs) and networking equipment needed to power these facilities.

But buying Nvidia's hardware comes at a massive cost, so unsurprisingly, these companies have strong incentives to find cheaper, more efficient ways to run their AI workloads. One solution is to develop their own chips.

Google has its Tensor Processing Units, or TPUs, Amazon has its Trainium chips, and Microsoft is developing its Maia family of AI accelerators. The logic is straightforward. If a cloud provider can run an AI workload more efficiently with its own chip, it may reduce costs and improve profitability.

For investors, that's the risk worth watching: Nvidia's customers have a financial incentive to become less dependent on Nvidia.

NVDA Nvidia$217.09+$2.96 (+1.38%)

NASDAQ · As of 4:00 PM ET 10/19/26

Why this matters for Nvidia's valuation Nvidia's recent financial results show just how powerful its business has become.

In its second quarter of fiscal 2027, revenue surged 106% year over year to $96.2 billion. Data Center revenue grew 117% to $89 billion, while gross margin reached 75%. These numbers demonstrate Nvidia's enormous advantage today. Its products remain in strong demand, and its software ecosystem makes its platform difficult to replace.

But today's success doesn't guarantee that Nvidia will maintain the same economics indefinitely. If customers increasingly turn to their own chips for certain workloads, Nvidia may face greater pressure to compete on price, efficiency, and performance. It could still grow rapidly, but its growth or profit margins might eventually fall short of optimistic investors' expectations.

That distinction matters when considering a $10 trillion valuation. Assuming the investor is willing to pay a 25x price-to-earnings (PE) ratio for the stock in the long run, Nvidia needs to generate $400 billion in net profit. In fiscal 2026 (ended Jan. 25, 2026), Nvidia's net income was $120 billion.

To be fair, Nvidia's latest quarterly revenue was close to $60 billion -- or annualized at $240 billion -- so the $400 billion net profit doesn't seem too far-fetched. But assuming the demand for Nvidia's products will continue to grow at these levels may be too optimistic. In particular, if its customers capture more of the economic benefits of AI computing, Nvidia might struggle to deliver the earnings growth investors anticipate.

In other words, the risk isn't necessarily that Nvidia's business will shrink, but rather that the company could become much bigger without becoming as profitable as the market expects.

The bull case remains strong Nvidia remains a remarkably strong business. Its CUDA software ecosystem, networking technology, and integrated computing systems make its products difficult to replace. Building a custom chip is one thing; creating an entire platform that developers want to use is another.

And Nvidia's customers could continue buying its products while developing alternatives. AI demand may grow quickly enough for both Nvidia and custom-chip providers to thrive. So, the rise of custom chips doesn't automatically mean Nvidia will lose its leadership. The question is just how much of the industry's future growth Nvidia can capture and how much profit it might retain.

What does it mean for investors? Nvidia reaching a $10 trillion market capitalization isn't impossible. Its technological advantages and exposure to AI give it an enormous opportunity. But I wouldn't assume that today's growth rates and profit margins will continue indefinitely.

As Nvidia's biggest customers develop their own chips, investors should watch whether these alternatives begin to capture a meaningful share of workloads that would otherwise run on Nvidia hardware. That's the risk I would watch before betting on a $10 trillion valuation.

The Nasdaq-100 index is known for including large technology companies like Apple (AAPL -0.15%) and Nvidia (NVDA +1.38%). These growth companies have provided strong gains over the years. However, its stocks tend to be more volatile.

For investors seeking less volatile price swings with reliable dividend income, look no further than Procter & Gamble (PG -1.04%). The shares have a dividend yield of 2.8%, more than five times the Nasdaq-100's 0.5%. It's also nearly three times higher than the S&P 500 index's 1% yield.

Here's a closer look at the company to see why dividend investors should strongly consider Procter & Gamble's shares.

Image source: Getty Images.

Impressive history Procter & Gamble doesn't appear to operate an exciting business. It sells products like shampoos, razors, deodorants, toothpastes, detergents, and diapers. However, it has popular brands with high market shares, such as Head & Shoulders, Tide, Gillette, and Pampers.

Selling these types of products also makes the company's results resilient to economic cycles. That's because people need them, no matter what's going on with their personal financial situation.

In fact, you'd be hard-pressed to find a company with as impressive a dividend history as Procter & Gamble. It has made payments for 136 years and raised them for 70 straight years. That makes the company a Dividend King, a group of companies that have increased dividends for at least 50 straight years.

Most recently, the board of directors approved a solid 3% hike to April's payment. Procter & Gamble currently pays a $ 1.0885-per-share quarterly dividend.

Streak set to continue Of course, an impressive dividend history doesn't mean much if a company can't afford to continue paying and raising payments. Fortunately, Procter & Gamble's ability to pay dividends isn't in question.

One look at the company's cash flow tells you all that you need to know. For the latest fiscal year, which ended on June 30, Procter & Gamble generated free cash flow of $15.1 billion. That easily covered the company's $10.2 billion in dividends.

PG Procter & Gamble$157.69-$1.66 (-1.04%)

NYSE · As of 4:00 PM ET 10/19/26

Free cash flow is an important measure since it's operating cash flow minus capital expenditures. Put another way, it's the amount of cash the company produces from operating the business, less the amount expended for investing in long-term assets.

With a relatively high dividend yield, a long history of dividend increases, and plenty of cash flow to support payments, Procter & Gamble has earned a place in the portfolios of investors seeking dividend-paying stocks.

, /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) ("Kimberly-Clark") announced today that it has priced a private offering (the "Offering") of senior unsecured notes in a combined aggregate principal amount of $4.9 billion (collectively, the "Notes"). The Notes will be issued by Kimberly-Clark in five tranches: (i) $750,000,000 aggregate principal amount of 5.100% Notes due 2028, (ii) $1,000,000,000 aggregate principal amount of 5.300% Notes due 2029, (iii) $1,250,000,000 aggregate principal amount of 5.450% Notes due 2031, (iv) $750,000,000 aggregate principal amount of 5.650% Notes due 2034, and (v) $1,150,000,000 aggregate principal amount of 5.800% Notes due 2036. Kimberly-Clark expects that the closing of the offering will occur on October 29, 2026, subject to the satisfaction of customary closing conditions.

The Offering is being conducted in connection with the previously announced proposed acquisition ("Acquisition") of Kenvue Inc. ("Kenvue"), which is expected to be consummated in the fourth quarter of 2026, subject to the satisfaction of certain customary closing conditions. Kimberly-Clark intends to use the net proceeds from the Offering, together with cash on hand and/or borrowings under its commercial paper program, to fund the cash consideration payable in connection with the Acquisition, and to pay related fees and expenses. Kimberly-Clark expects to use any remaining net proceeds from the Offering for general corporate purposes. The Offering is not conditioned on the consummation of the Acquisition. However, if (i) the Acquisition has not been consummated prior to the date that is five business days after the later of (x) May 31, 2027 or (y) any later date as the parties to the Acquisition agreement may agree as the "Outside Date" thereunder or (ii) Kimberly-Clark notifies the trustee for the Notes that Kimberly-Clark will not pursue the consummation of the Acquisition, then Kimberly-Clark will be required to redeem all outstanding Notes at a special mandatory redemption price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the applicable special mandatory redemption date.

In connection with the Acquisition, on September 28, 2026, Kimberly-Clark commenced an offer to exchange all of Kenvue's existing senior notes in exchange for new senior notes to be issued by Kimberly-Clark (the "Exchange Offers") and solicitation of consents with respect to certain amendments to the indentures governing Kenvue's existing senior notes (the "Consent Solicitations") pursuant to a separate confidential offering memorandum and consent solicitation statement. If (i) the Exchange Offers are withdrawn (but the Acquisition has been consummated and the Notes are issued and outstanding) or (ii) if the Acquisition is consummated, the Notes are issued and outstanding and the Exchange Offers are not completed within four (4) business days after the expiration date of the Exchange Offers (as may be extended pursuant to the terms described in the offering memorandum and consent solicitation statement), the Notes will be fully and unconditionally guaranteed (the "Kenvue Guarantees"), on an unsubordinated unsecured basis, by Kenvue (or its successor, as applicable). The consummation of the Offering is not contingent on the completion of the Exchange Offers and Consent Solicitations and the completion of the Exchange Offers or Consent Solicitations is not guaranteed to occur on the terms described in the offering memorandum and consent solicitation statement or at all. This press release shall not constitute an offer to exchange or a solicitation of consent with respect to the Exchange Offers and Consent Solicitations and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Notes (including the Kenvue Guarantees, if any) have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or securities laws of any state or any other jurisdiction. Accordingly, the Notes will be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and other applicable securities laws, pursuant to registration or exemption therefrom. The Notes are being offered and sold only (a) to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) in compliance with Rule 144A under the Securities Act and (b) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes or any other security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Kimberly-Clark

Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. The KMB stock is a large cap growth and value stock and core S&P 500 equity held by more than 400 Exchange Traded Funds. Kimberly-Clark is considered a dividend aristocrat, having paid a cash dividend to shareholders for 92 consecutive years and increased its dividend for 54 consecutive years. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.

Forward-Looking Statements

Certain statements contained in this press release, including the expected timing of completion of the Acquisition and the Offering and the intended use of net proceeds from the Offering, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are qualified by the inherent risks and uncertainties surrounding future expectations generally. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements based upon the expectations and beliefs of the management of Kimberly-Clark as of the date they were made and speak only as of the date they were made. We undertake no obligation to publicly update any forward-looking statements. Some of these forward-looking statements can be identified by words like "anticipate," "approximately," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will" or "would," the negative of these words, other terms of similar meaning or the use of future dates.

The assumptions used as a basis for the forward-looking statements include many estimates. Many factors outside our control, including risks and uncertainties around the Acquisition, could affect the realization of these estimates. Additional information and factors concerning these risks, uncertainties and assumptions can be found in Kimberly-Clark's filings with the U.S. Securities and Exchange Commission ("SEC"), including the risk factors discussed in Kimberly-Clark's most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC. Forward-looking statements included herein are made only as of the date hereof and Kimberly-Clark undertakes no obligation to update any forward-looking statements, or any other information in this press release, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.

[KMB-F] [KMB-C]

SOURCE Kimberly-Clark Corporation

In the latest close session, Wix.com (WIX - Free Report) was up +2.63% at $76.98. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.

Heading into today, shares of the cloud-based web development company had lost 4.43% over the past month, lagging the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.

Market participants will be closely following the financial results of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 21.43%. Our most recent consensus estimate is calling for quarterly revenue of $566.94 million, up 12.22% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.28 per share and revenue of $2.26 billion, which would represent changes of -41.53% and +13.29%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wixcom. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Wix.com boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Wix.com is currently exchanging hands at a Forward P/E ratio of 17.54. This expresses a premium compared to the average Forward P/E of 14.57 of its industry.

It is also worth noting that WIX currently has a PEG ratio of 1.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.3.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.

, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Yiren Digital Ltd. (NYSE: YRD) resulting from allegations that Yiren may have issued materially misleading business information to the investing public.

So What: If you purchased Yiren securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.

What to do next: To join the prospective class action, go to https://rosenlegal.com/cases/yiren-digital-ltd/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

What is this about: On October 12, 2026, Yiren issued a press release entitled "Yiren Digital Provides Update on Its CEO and Operations." The press release stated that Yiren had "became aware of a police notice published on October 12, 2026, stating that Mr. Ning Tang, the Company's Executive Chairman and Chief Executive Officer, had been subject to criminal compulsory measures in connection with an investigation involving certain affiliates of the Company's controlling shareholder."

On this news, Yiren's American Depositary Shares fell 44% on October 12, 2026.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

     Laurence Rosen, Esq.
     Phillip Kim, Esq.
     The Rosen Law Firm, P.A.
     275 Madison Avenue, 40th Floor
     New York, NY 10016
     Tel: (212) 686-1060
     Toll Free: (866) 767-3653
     Fax: (212) 202-3827
     [email protected]
     www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

RLI Corp. (RLI - Free Report) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +48.28%. A quarter ago, it was expected that this specialty insurance company would post earnings of $0.71 per share when it actually produced earnings of $0.83, delivering a surprise of +16.9%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

RLI Corp., which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $471.61 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.07%. This compares to year-ago revenues of $448.96 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

RLI Corp. shares have lost about 4.6% since the beginning of the year versus the S&P 500's gain of 11.9%.

What's Next for RLI Corp.?While RLI Corp. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for RLI Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.69 on $476.22 million in revenues for the coming quarter and $2.90 on $1.86 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Chubb (CB - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 20.

This insurer is expected to post quarterly earnings of $6.53 per share in its upcoming report, which represents a year-over-year change of -12.8%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.

Chubb's revenues are expected to be $16.72 billion, up 3.6% from the year-ago quarter.

Cyclical assets driving recent Aussie and Kiwi strength
US dollar and Treasury yield rebounds threaten gains
Speculators heavily long AUD, short NZD, creating contrasting vulnerabilities
AUD/USD looks heavy, NZD/USD breaks its minor uptrend
The Aussie and Kiwi have enjoyed decent bounces against the US dollar over recent days, benefiting from a recovery in risk appetite, China's latest data dump coming in marginally firmer than expected, and potentially a short-term rotation away from US tech and AI-linked stocks towards more cyclical and value-orientated areas of the market.

A reduction in hawkish Fed pricing and a decline in US Treasury yields, led by the back end of the curve, may have provided an additional tailwind, particularly for cyclical assets.

However, while both Antipodean currencies continued to rise against the greenback on Monday, the narrower US Dollar Index found its footing, helped in part by renewed concerns over France's fiscal outlook, while Treasury yields and US tech stocks pushed higher. Broader risk appetite remained firm, helping to sustain the gains, but an extension of those moves could create headwinds for both the Aussie and Kiwi today.

Cyclicals Lead the Way

Source: LSEG

AUD/USD continues to track industrial metals prices closely, with correlations of +0.93 over five sessions and +0.62 over ten. NZD/USD, in contrast, has shown a stronger relationship with global materials equities and USD/CNH, with ten-session correlations of +0.62 and −0.57, respectively.

Interestingly, neither currency has shown much of a relationship with broader risk appetite, proxied here by S&P 500 futures, or volatility measures such as VIX futures and the MOVE index over the past ten sessions. Nor have interest rate differentials shown a particularly meaningful relationship over the near term, suggesting cyclical factors have been a more consistent influence on both currencies recently than broader risk appetite or relative interest rate movements.

Speculative Divide
Perhaps reflective of the Aussie's outperformance against the Kiwi for large portions of this year, positioning among speculative traders remains heavily skewed in the Aussie's favour, as seen in the graphic below showing the latest CFTC leveraged funds gross and net positioning.

Source: LSEG

Leveraged funds hold 87,632 gross long AUD futures contracts against just 37,041 shorts, leaving them net long 50,591 contracts. It's almost the mirror image for the Kiwi, with 17,668 gross longs against 29,287 shorts, leaving speculative traders net short 11,619 contracts.

While this represents only one segment of the broader FX market, it gives a sense of how positioning may be skewed. With Aussie longs heavily outweighing shorts, there's potential vulnerability to long liquidation should sentiment deteriorate. For the Kiwi, the opposite applies, with short covering potentially providing support if the recovery continues.

Recent economic data may also explain why the Kiwi has started clawing back ground, with softer Australian labour market data last week seeing traders curtail expectations for further RBA tightening. A full 25 basis point hike is no longer priced by the end of next year.

In contrast, New Zealand's latest manufacturing and services PMIs suggest the economic recovery continues to build despite headwinds from elevated energy prices and persistent inflationary pressures, with markets continuing to price more than four full rate hikes by the second half of next year.

The divergence in economic performance may also be contributing to the shift in relative performance between the two currencies.

Aussie Looking Heavy

Source: TradingView

Having hit its lowest level since July last week, the latest Aussie bounce has seen the pair recover from just beneath 69 US cents to within a whisker of 70 cents on Monday.

However, looking at the four-hourly candles overnight, you can't help but notice the elongated upper wicks, resembling something akin to shooting stars. While we've yet to see follow-through selling, the pair is now resting right on the minor uptrend that's been in place from the recent lows, suggesting directional risk may be starting to skew to the downside.

RSI (14) remains above the neutral 50 level but has now flatlined, while MACD is beginning to converge towards its signal line, albeit in positive territory.

After a decent bounce, the price action looks heavy, putting downside levels such as 0.6967 and 0.6940 in focus in the near term.

Should the Aussie resume its advance, 0.69931 marks the level where the price stalled overnight, while 0.7004 has acted as both support and resistance over recent weeks. A break above 0.7015, the high set on October 14, would disrupt the sequence of lower highs and begin to skew directional risk higher again.

For now, though, the immediate price action suggests the bulls may have their work cut out extending the recovery.

Kiwi Losing Momentum

Source: TradingView

NZD/USD has followed a similar pattern to the Aussie, although the pair has already broken beneath the minor uptrend that had been in place from the lows set earlier this month. While that suggests directional risk may be shifting sideways to lower, overnight selling pressure was not as pronounced by comparison.

Looking at the last two four-hourly candles, bids have emerged around 0.5660, making that the immediate focal point for trade construction. On the downside, 0.5641 marks the low set late last week, with 0.5627 a more substantial support zone, having acted as resistance for a lengthy period earlier this month.

Overhead, 0.56753 marks the high set late last week, with 0.56863 and 0.5704 the next levels of note.

RSI (14) remains above the neutral 50 level but has yet to set a higher high, providing a cautionary message for bulls considering chasing further upside in the near term. That view is reinforced by MACD, which is now converging towards its signal line in positive territory, raising the possibility of a bearish crossover.

It's not an outright bearish message by any stretch, but it does put greater emphasis on how the price responds around these levels rather than holding a firm directional bias in the near term.

On Monday, Amazon Web Services released a tool called TorchNeuron that lets AI startups easily move their AI apps onto Amazon’s AI chip, Trainium. In doing so, Amazon is also taking a direct stab at the the software advantage that has helped Nvidia become the default hardware choice for AI apps, and spurred its rise as AI hardware provider of choice.

TorchNeuron works with PyTorch, a free, open-source toolkit that developers use to build, train, and run AI models. It lets AI apps written with PyTorch run on Trainium by changing just one line of configuration, according to Amazon — no code rewrite required.

Amazon says about 85% of AI apps are written with PyTorch. Facebook originally developed it, but since 2022, it has been part of the Linux Foundation, which maintains open-source projects. Nvidia has spent years ensuring its CUDA software — the software infrastructure that allows apps to run on Nvidia GPUs and its other hardware — seamlessly supports AI apps written with PyTorch. As a result, Nvidia’s hardware is now deeply embedded in the toolkit, essentially by default.

TorchNeuron is adapted from PyTorch, so developers who know PyTorch already know how to use it. Amazon isn’t the first company to attempt to easily bring their chips to the platform. PyTorch users can also port their apps to AMD GPUs or even Apple’s chips with a simple configuration change.

However, Amazon argues that porting to Trainium isn’t just easy; it also gives AI startups access to Amazon’s entire cloud. Unsurprisingly, AWS claims that this is a better choice for startups than using neoclouds, many of which are tied to Nvidia and its hardware, like Coreweave, Nebius, and Firmus.

“You’re building on AWS. You’re not betting on a single-purpose compute provider and scrambling to build everything else around it,” Colin Brace, VP of Technology Software at AWS Annapurna Labs (the unit that makes Amazon’s custom chips) told TechCrunch via email. “On AWS,” he continued, “the infrastructure to go from prototype to production is already there, allowing a founder to move fast and scale when they need to.”

AWS says that because the same chip both handles training (teaching the AI model) and inference (putting the finished model to work, as when it answers a user’s question), and is tightly integrated with the cloud infrastructure that startups need, its cloud will save them money, even if AWS doesn’t offer the cheapest per-token price.

“Trainium’s value is price-performance plus the fact that it’s one platform for both training and inference, which improves the economics across a full workload,” Brace said. “Look at Deepgram — they moved to Trainium using native PyTorch, support and they’re processing 70% more audio per dollar at production-grade accuracy.” Deepgram is an AI voice app provider, a competitor to ElevenLabs.

But Amazon isn’t content to just give PyTorch app developers an easy option to move to its cloud.

Amazon also says it is pushing PyTorch to be less automatically centered on Nvidia, and it will contribute the code to do that to the main PyTorch project. In the blog post announcing the new tool, the company wrote:

“Amazon’s approach extends beyond its own hardware. The company is contributing changes upstream to PyTorch itself, working with the PyTorch community to remove code that ties the framework to specific chips. The goal is to make PyTorch more hardware-agnostic for the entire developer community, not just Trainium users.”

While such a tactic is undoubtedly good for those who are selling hardware and cloud services that compete with Nvidia, one of the points of PyTorch is to hide all the pesky difficulties of getting AI code to run on hardware. We’ll have to wait and see if pushing Nvidia out that far gives developers more choice and more affordable options, as Amazon promises, or just more configuration headaches.

Either way, if Amazon succeeds in deeply uncoupling PyTorch from Nvidia, this could have much bigger ramifications for the GPU giant than simply dealing with chip competitors. As Brace said: “The real story is removing the lock-in that kept developers from having a real choice at all.”

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, /PRNewswire/ -- 3M (NYSE: MMM) today announced a collaboration with Genius Electronic Optical Co., Ltd. (GSEO, Taiwan: 3406), an optical technology company, to advance technology development and manufacturing for 3M's Expanded Beam Optical (EBO) solutions. In support of these efforts, 3M expects to make a strategic investment to acquire approximately 4.7% of GSEO's common shares as part of the company's private placement of newly issued shares, subject to customary closing conditions.

The collaboration brings together 3M's EBO technology leadership, optical interconnect expertise, materials science, manufacturing scale and customer relationships with GSEO's precision optics manufacturing capabilities and production scale. Together, the companies aim to support EBO commercialization and long-term capacity expansion to meet growing demand from hyperscale data centers and other advanced connectivity applications.

"3M is investing in capabilities and partnerships that can accelerate innovation for our customers," said William Brown, 3M Chairman and CEO. "By selecting GSEO as a manufacturing partner and investing in the company, we are strengthening the path to scale next-generation optical connectivity solutions for high-performance data center infrastructure."

GSEO's existing precision optics manufacturing capabilities and technical development experience are expected to support manufacturing readiness for 3M's EBO ferrules, co-packaged optics solutions and related optical interconnect applications. The collaboration is part of 3M's broader EBO ecosystem strategy, which includes continued work with customers and partners across the optical interconnect market.

"GSEO is pleased to expand its relationship with 3M as we work together to advance optical interconnect solutions for next-generation data center infrastructure," said Micro Kuo, GSEO CEO and President. "This collaboration brings together complementary technology and manufacturing strengths to support continued innovation and help meet the performance demands of high-growth connectivity markets."

3M expects the strategic investment to close in the fourth quarter of 2026, subject to customary closing conditions.

Forward-Looking Statements
Certain statements in this release are considered "forward-looking statements" under the federal securities laws, including the Private Securities Litigation Reform Act of 1995, as amended, and are intended to enjoy the protection of those laws. Forward-looking statements may appear throughout this release and are typically identified by the words "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "evaluate," "expect," "forecast," "future," "goal," "guidance," "impact," "initial," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "project," "seek," "should," "strategy," "target," "will," "would," and other words that are similar to, or have the opposite meanings of, those words. Forward-looking statements speak only as of the date they are made, 3M assumes no duty to update those statements, and readers are cautioned not to place undue reliance on any of those statements. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties, including those described in Part I, Item 1A, "Risk Factors" of 3M's Form 10-K for the year ended December 31, 2025.

About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.

Contacts
3M
Investor Contact:
Diane Farrow, 612-202-2449
Media Contact:
[email protected] 

SOURCE 3M Company

Listen to the audio version of this article (generated by AI).

Blockbuster’s lesson, revisited… when AI kneecaps a moat… two tests for every stock you own… Eric Fry’s “panic early” rule
As I write on Monday morning, the AI trade is trying to claw its way back after last week’s brutal selloff.

But whether this is a fool’s gold rally or the start of a real bull run into the end of the year, one thing is true: AI itself is quietly eroding the business models of some of the market’s best-known companies. It’s critical that you and I recognize how this is happening and prepare our portfolios – not just for a week of volatility but for permanent existential risk.

For an example that’s playing out right now, let’s rewind 26 years…

In September 2000, the founders of a money-losing DVD-by-mail startup flew to Dallas to pitch the CEO of the biggest name in home video on an acquisition.

The startup was Netflix (NFLX). The CEO was Blockbuster’s John Antioco. And the asking price was $50 million.

Netflix co-founder Marc Randolph, who showed up in shorts, a tie-dyed T-shirt and flip-flops, later described the moment the number landed. As he put it in his memoir, “John Antioco was struggling not to laugh.”

Blockbuster turned down the deal, and 10 years later, it filed for bankruptcy.

It’s become the business world’s favorite cautionary tale about a dominant company that didn’t see what was coming. But today, the story is worth retelling for an ironic reason…

Netflix may be staring down its own Blockbuster moment – though for a very different reason.

The streaming giant stumbles
Last Wednesday, Netflix management told employees it will lay off roughly 6% of its workforce, or about 1,000 people. The cuts land mostly on the product, tech, legal and HR teams.

A few weeks ago, co-CEO Ted Sarandos told a Bloomberg conference that the company was “not growing as fast as I want.” As one illustration of this, viewing time grew just 2% in the first half of the year.

Wall Street has noticed. In June 2025, NFLX stock hit a record high. But as I write on Monday, it trades at less than $70 – down nearly half since that high-water mark.

But this selloff is less about an upstart company challenging the industry king, and more about an upstart technology challenging the entire model.

Netflix sees AI coming. In fact, it’s embracing it. Last year, Netflix confirmed that its Argentine sci-fi series The Eternaut featured the first generative AI footage ever to appear in the final cut of a Netflix original.

The scene showed a building collapsing in Buenos Aires. Sarandos told analysts the sequence was finished 10 times faster than with traditional visual effects. He added that, without AI, the cost “would just not have been feasible for a show in that budget.”

But look at the flip side of that – the same tool that lets Netflix make an expensive scene cheaply lets everyone make it cheaply. And that dovetails into the problem…

For two decades, Netflix’s moat rested on a simple fact: great video is expensive and slow to make, and Netflix could outspend nearly everyone. Blockbuster’s downfall was a failure of vision. Netflix faces something more difficult: a technology that erodes its moat, no matter how clearly management sees the danger coming.

“Nothing is happening at all” –until it is
Tom Yeung, lead analyst for our global macro expert Eric Fry in Fry’s Investment Report, has been tracking this threat since March.

Back then, Netflix traded near $100, and investors weren’t worried about its long-term profits. After all, AI video was still mostly a punchline.

Here’s how Tom described AI video quality at the time:

A recently generated viral clip of Jackie Chan fighting Jet Li had more bugs than a picnic in July.

Anyone watching it carefully will notice the kung fu actors reaching straight through objects, growing phantom limbs, and magically teleporting between camera shots.

Then the situation changed, gradually at first and then all at once.

Back to Tom:

In short, people saw the technology the same way parents often view their kids – with progress so gradual that it’s tempting to conclude that nothing is happening at all.

But every once in a while, there comes an epiphany of how far things have come. For AI-generated video, that realization happened over the past six months after a stream of new developments began making headlines.

Two of those developments came from China. First, in April, regulators approved the world’s first theatrical release of a feature-length AI film by a major mainstream movie studio. That film, Sanxingdui: Future Memories, opens in Chinese theaters this Friday.

Then in August, a Chinese company began releasing episodes of an AI-generated TV show, The Sequel to Journey to the West. Tom notes that it racked up 280 million views across its first five episodes and ranked No. 1 among some provincial channels.

The economics behind all this are startling…

According to Chinese state broadcaster CCTV, the cost of producing one minute of an AI short drama fell from 5,000 yuan (about $700) to just a few hundred yuan in the first half of this year.

One Chinese director said a wedding scene that would have cost him about $9,000 to shoot cost about $210 with AI.

Circling back to Netflix, here’s Tom with the fallout:

Shares of Netflix have since fallen below $70, and one analyst even dared put a “Sell” rating on this formerly blue-chip stock – its first negative review since the start of the year.

After all, Netflix is now facing some real competition.

Credit to Tom – Wall Street’s first bearish call (last month) arrived after the stock had already fallen about 30% from Tom’s March warning.

In fairness to Netflix
Before we write Netflix’s obituary, a real bull case remains.

Netflix has more than 300 million subscribers, and its advertising revenue is on track to roughly double this year, to about $3 billion. Meanwhile, management has guided to $51 billion to $51.4 billion in 2026 revenue.

Plus, live sports and events, which AI can’t fake, are a growing part of the mix. And AI may cut Netflix’s own production costs as much as anyone’s.

These tailwinds mean investors trying to understand whether AI will hurt or help Netflix should ask two questions…

What is Netflix’s core asset as a company? And does AI make that asset more or less scarce?

If it’s the content, Netflix’s dominance looks shaky as a wave of cheap content is coming. But if it’s the subscriber relationship and global distribution network, the moat may hold.

Notably, CNBC reports that Netflix’s biggest threat has been YouTube, which is a distribution platform rather than a studio. YouTube doesn’t need to make the best shows. It wins by being the viewing channel people turn to by habit.

That’s a hint that in a world of abundant video, the scarce asset is the platform where viewers spend their time – and with more than 300 million subscribers, Netflix owns one of the biggest. The catch is that Netflix is competing with YouTube for those same hours – and YouTube is free to watch.

Now, beyond Netflix, the question of “what’s actually scarce?” is critical to ask as you evaluate your portfolio – after all, it’s how we spot small cracks in our own holdings before they turn into massive fissures.

Two ways AI breaks a moat
Netflix’s challenge – that something which once made it valuable is becoming abundant – isn’t unique. Plenty of good businesses will face it in the years ahead.

This points to two tests we can run on every stock we own…

The scarcity test.

Pricing power follows scarcity. When AI turns a scarce thing into an abundant thing, the pricing power leaks away, even from well-run companies.

The logic applies to any business whose core product is expensive, skilled human output. That includes tutoring and homework help, stock photography, call-center labor and ad production.

So, does AI make the products of the companies you own more or less scarce?

The friction test.

In our Sept. 29 Digest, we looked at how AI agents like Meta Platforms Inc.’s (META) Muse could commoditize businesses built on customer inertia. These include banks paying 0.1% on checking accounts, insurers counting on lazy renewals, and wireless carriers charging loyal customers more than new ones.

Scarcity and friction are two different mechanisms with one shared outcome: margins that looked permanent can turn out to be temporary.

So, does AI make it easier for customers to find better or cheaper alternatives to the products and services offered by the companies you own?

If the answer is “yes” to either of these two tests, be careful.

When to act: Eric Fry’s rule
The problem for investors is that by the time disruption is obvious, it’s usually priced in. Tom issued his warning in March. Wall Street’s first sell call arrived in September – 30% lower.

Eric – our macro investing expert – has a rule for exactly this kind of situation. Now, to be clear, he wasn’t writing about Netflix. He was writing about risk in the broader market. But the point remains:

Panic early. That’s the only near-certain defense against adversity in the financial markets, and in life generally…

Once you catch a whiff of smoke from a distant wildfire, you don’t hang around until embers are landing on your roof…

Successful panicking begins by saying “no” to obvious risks. Only then can you calmly examine and select opportunities that offer a more favorable route to wealth-building.

Panicking early doesn’t mean dumping every stock that AI touches. It does mean assessing the situation soberly, then making calm, deliberate choices.

For more on the stocks that Eric believes are worth holding today, click here to learn about joining him and Tom in Fry’s Investment Report.

Coming full circle
This brings us back to Netflix, which reports earnings tomorrow.

If you own the stock, this will be a live test of what Netflix’s core asset really is. Watch engagement trends, content spending, and anything management says about generative AI in production.

Strong engagement and a growing ad business would suggest the subscriber relationship is the scarce asset that holds. Another quarter of flat viewing would point the other way.

Either way, let’s not miss the wider point…

Netflix beat Blockbuster by making video easy to get. The next disruption is making video easy to make. Unlike Blockbuster, Netflix sees it coming. What’s still unclear is whether that’s enough.

Now, before we wrap up today, a quick related note…

Want to trade Netflix’s earnings tomorrow but aren’t sure about which way it will break?
If you’re tempted to trade Netflix’s earnings, you don’t necessarily have to correctly predict which way the stock will move to make money.

I learned that from veteran trader Jonathan Rose, editor of Advanced Notice. Sometimes, instead of betting on the direction a stock will move after an earnings report, Jonathan buys both calls and puts – positioning to profit from a big move, whichever way it goes.

Under the right circumstances, it can be very lucrative…

For example, this approach paid off for Jonathan’s subscribers last week with FMC Corp. (FMC). Shares plunged more than 36% after a dramatic guidance cut, and Jonathan’s subscribers took profits on the put side for what he called “more than 200% on our total position.”

For more on how Jonathan finds and structures trades like this – plus his entire trading approach to the markets – you can still catch a free replay of his $10K to $100K Challenge from last week. We’re taking the replay down later this week, so click here to watch it while you can.

We’ll keep tracking Netflix here in the Digest.

Have a good evening,

Jeff Remsburg

The "Magnificent Seven" are a collection of the leading tech stocks on U.S. markets, and they've normally been excellent investments to own. This year, however, as excitement around artificial intelligence (AI) has begun to cool, some of those stocks simply haven't been doing all that well. Tesla, for instance, is down 18%.

The top performer from the group is Apple, which has risen by 26% thus far. That's a great, market-beating return, but it's still nowhere near as good as how one top dividend stock has done: Target (TGT -0.63%). Shares of the big-box retailer are up a staggering 57%.

What's the deal with Target's rally this year? Here's why it's been overdue, and why it may still be worth buying.

Image source: Getty Images.

Target's valuation has been too low for too longAlthough Target's stock has been doing incredibly well this year, in five years, it's still down 39%. For multiple years, it has been performing poorly, and the last time it was in positive territory was in 2021, when it rose by 31%. As consumers have pulled back on discretionary spending, Target's stock has suffered.

Now, however, with a new CEO and the company showing signs of progress in recent earnings reports, the market has begun to pay attention to the retail stock once again.

But to be clear, it's not as if the business is booming. Its growth rate in its most recent quarter (which ended on Aug. 1) was just 5.3%, and the comparable growth rate was only 3.6%. It's also going up against weak comparables, so while its numbers are decent, they aren't amazing.

But when you combine that with its low valuation and high dividend, it has made for a much more compelling investment to own this year, and that's why I believe it can still go higher.

TGT Target$153.29-$0.97 (-0.63%)

NYSE · As of 4:00 PM ET 10/19/26

The stock remains incredibly cheap compared to the overall marketDespite its tremendous rally this year, Target is still trading at a fairly modest price-to-earnings (P/E) multiple of just 16, which is far below the S&P 500 average of around 23. And rival Walmart trades at a P/E of 43, making Target look incredibly cheap by comparison.

An extra incentive to own Target's stock is also for its dividend, which currently yields 3%, far higher than the market average of about 1%. It has also consistently raised its payout for 55 consecutive years.

Target's stock can still be an excellent buy at its current price point, both for its potential upside and the dividend income it can generate.

Pfizer (PFE -0.47%) is a stock that the market has largely forgotten about for multiple years, languishing and struggling to rise in value despite having strong fundamentals and an attractive valuation.

Recently, however, it's been picking up steam. It's up 18% this year, in what is shaping up to be its best year since 2021, when it rose more than 60% due to strong revenue growth from its COVID vaccine and pill.

Despite its recent gains this year, however, the stock remains down around 30% over a five-year period. It may still have plenty of room to rise even higher.

Image source: Getty Images.

A rotation may be taking place, from tech into healthcareFor much of the past few years, it's been tech stocks that have been the hot buys, due to the enormous opportunities in artificial intelligence. But with interest rates on the rise, investors appear to be thinking twice about the sector of late. In the past few days, there's been a notable shift out of tech and into healthcare, as is evident with the following two exchange-traded funds.

XLK data by YCharts

This is a small sample size, of course, but it may be the start of a new trend emerging, with investors pivoting to safer stocks that offer high yields. The healthcare sector is full of them, with Pfizer being one of the best in that regard.

At 5.8%, the stock offers one of the highest yields on the S&P 500, which is more than five times the index's average of just 1%. It's a huge incentive for income investors in search of recurring income.

Pfizer's stock still looks incredibly cheapAt first glance, investors may scoff at Pfizer's stock because of its seemingly expensive valuation. On a trailing earnings basis, its price-to-earnings (P/E) multiple is extremely high at 37. However, the company has been in the midst of restructuring its operations and has incurred impairment charges and other nonrecurring items, which have weighed on its bottom line, making its earnings worse than they otherwise would be.

PFE Pfizer$29.44-$0.14 (-0.47%)

NYSE · As of 4:00 PM ET 10/19/26

But on a forward basis, its P/E multiple is around 10. That's based on how much earnings analysts expect it will generate over the coming year. That can be a better measure of how expensive the stock truly is, without all the noise in its financials.

While there are still long-term question marks about its growth, the stock remains heavily undervalued and should be trading at a far higher multiple than it is right now. As the market begins to recognize that, the healthcare stock could soar far higher.

, /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended September 30, 2026.

THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS

$(1.28) comprehensive loss per common share, comprised of:

$(1.17) net loss per common share
$(0.11) other comprehensive loss ("OCI") per common share on investments marked-to-market through OCI

$0.37 net spread and dollar roll income per common share1

Excludes $0.05 per common share of estimated "catch-up" premium amortization benefit due to change in projected constant prepayment rate ("CPR") estimates

$7.13 tangible net book value per common share as of September 30, 2026

Decreased $1.45 per common share, or 16.9%, from $8.58 per common share as of June 30, 2026

$0.36 dividends declared per common share for the third quarter
-12.7% economic return on tangible common equity for the quarter

Comprised of $0.36 dividends per common share and $1.45 decrease in tangible net book value per common share

OTHER THIRD QUARTER HIGHLIGHTS

$94.4 billion investment portfolio as of September 30, 2026, comprised of:

$91.4 billion Agency mortgage-backed securities ("Agency MBS")
$2.4 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities")
$0.6 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments

7.9x tangible net book value "at risk" leverage as of September 30, 2026

7.6x average tangible net book value "at risk" leverage for the quarter

Unencumbered cash and Agency MBS totaled $6.3 billion as of September 30, 2026

Excludes unencumbered CRT and non-Agency securities
Represents 57% of the Company's tangible equity as of September 30, 2026

6.7% average projected portfolio life CPR as of September 30, 2026

8.2% actual portfolio CPR for the quarter

1.86% annualized net interest spread for the quarter2
Issued 97.6 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $992 million

___________

1.

Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information.

2.

Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread.

MANAGEMENT REMARKS
"Fixed income markets experienced significant pressure in the third quarter, particularly in the final weeks of September, as fixed income investor sentiment turned decidedly bearish, interest rates increased sharply, and interest rate volatility spiked," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "The instability in the Treasury market drove pronounced weakness in the Agency MBS market, and, as a result, Agency MBS was the worst performing sector of the Bloomberg U.S. Aggregate Bond Index during the quarter. Consistent with this material underperformance of our underlying asset class, AGNC's economic return on tangible common equity in the third quarter was -12.7%.

"Despite the challenging macroeconomic environment, there are a number of reasons for optimism with respect to the outlook for Agency MBS once volatility in the Treasury market subsides. First, the return profile of Agency MBS is more attractive at current valuation levels, as mortgage spreads to benchmark rates are approaching the upper end of their multi-year trading range. Second, the fundamentals for Agency MBS are more favorable today than they were at the start of the third quarter. At current rate levels, most of the duration extension for the mortgage universe has already occurred, while prepayment risk has declined as a result of the increase in rates and the resulting reduction in the share of mortgages with a meaningful incentive to refinance. Third, supply-demand technicals remain in balance as mortgage originations remain low at these elevated rate levels and demand has been resilient. Together, these factors support a constructive outlook for Agency MBS performance."

"AGNC's -12.7% economic return on tangible common equity in the third quarter consisted of $0.36 of dividends declared per common share and a $1.45 decline in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's net spread and dollar roll income per common share was $0.37 for the third quarter, and AGNC concluded the third quarter with tangible net book value 'at risk' leverage of 7.9x and a liquidity position of $6.3 billion of unencumbered cash and Agency MBS, or 57% of our tangible equity at quarter end. Finally, AGNC was added to the S&P MidCap 400 Index during the third quarter, an important milestone for the Company and a testament to the scale that AGNC has attained over our 18-year history. This announcement and subsequent index rebalancing activity drove elevated trading volumes in AGNC's common stock, and we took advantage of this outsized liquidity to issue $992 million of common stock through our ATM offering program at a significant premium to tangible net book value per common share."

TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of September 30, 2026, the Company's tangible net book value per common share was $7.13 per share, a decrease of 16.9% for the quarter compared to $8.58 per share as of June 30, 2026. The Company's tangible net book value per common share excludes $526 million, or $0.42 and $0.45 per share, of goodwill as of September 30 and June 30, 2026, respectively.

INVESTMENT PORTFOLIO
As of September 30, 2026, the Company's investment portfolio totaled $94.4 billion, comprised of:

$93.8 billion of Agency MBS and TBA securities, including:

$89.2 billion of fixed-rate securities, comprised of:

$86.6 billion 30-year MBS,
$2.1 billion 30-year TBA securities, net, and
$0.5 billion 15 and 20-year MBS and TBA securities; and

$4.5 billion of collateralized mortgage obligations ("CMOs"), adjustable-rate and other Agency securities; and

$0.6 billion of CRT and non-Agency securities and other mortgage credit investments.

As of September 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company's investment portfolio, unchanged from June 30, 2026.

As of September 30, 2026, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.13%, compared to 5.04% as of June 30, 2026, comprised of the following weighted average coupons:

5.13% for 30-year fixed-rate securities;
4.85% for 15-year fixed-rate securities; and
3.74% for 20-year fixed-rate securities.

The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of September 30, 2026, such positions had a fair value of $2.4 billion and a GAAP net carrying value of $(70) million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $9.7 billion and $52 million, respectively, as of June 30, 2026.

CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of September 30, 2026 decreased to 6.7% from 8.6% as of June 30, 2026. The Company's weighted average actual CPR for the third quarter was 8.2%, compared to 13.0% for the prior quarter.

The weighted average cost basis of the Company's investment portfolio was 100.3% of par value as of September 30, 2026. The Company's investment portfolio generated a net premium amortization benefit of $34 million, or $0.03 per common share, for the third quarter, which includes a "catch-up" premium amortization benefit of $66 million, or $0.05 per common share, due to changes in the Company's CPR projections for certain securities acquired prior to the third quarter. This compares to net premium amortization cost for the prior quarter of $47 million, or $0.04 per common share, including "catch-up" premium amortization cost of $5 million, or less than $0.01 per common share.

ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD
The Company's average asset yield on its investment portfolio, excluding the TBA position, was 5.21% for the third quarter, compared to 4.87% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.92% for the third quarter, compared to 4.89% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the third quarter was 4.95%, compared to 4.89% for the prior quarter.

For the third quarter, the weighted average interest rate on the Company's repurchase agreements was 3.77%, compared to 3.74% for the prior quarter. For the third quarter, the Company's TBA position had an implied financing cost of 3.64%, compared to 3.46% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the third quarter was 3.09%, compared to 2.89% for the prior quarter.

The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the third quarter was 1.86%, compared to 2.00% for the prior quarter.

NET SPREAD AND DOLLAR ROLL INCOME
The Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the third quarter of $0.37 per common share, compared to $0.40 per common share for the prior quarter. Net spread and dollar roll income excludes $0.05 and less than $(0.01) per common share of estimated "catch-up" premium amortization benefit / (cost) for the third quarter and prior quarter, respectively.

The Company's cost of funds, net interest rate spread and net spread and dollar roll income excludes the impact of the Company's U.S. Treasury hedges, option-based hedges, and other supplemental interest rate hedges. For additional information regarding the Company's U.S. Treasury hedges, please refer to the schedule of Key Statistics included in this release.

A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release.

LEVERAGE
As of September 30, 2026, $85.7 billion of repurchase agreements and $2.4 billion of net TBA dollar roll positions (at cost) were used to fund the Company's investment portfolio. The remainder, or approximately $11.0 billion, of the Company's repurchase agreements was used to fund short-term purchases of U.S. Treasury securities ("U.S. Treasury Repo") and is not included in the Company's leverage measurements. Inclusive of its net TBA position and net payable/(receivable) for unsettled investment securities and unsettled equity issuances, the Company's tangible net book value "at risk" leverage ratio was 7.9x as of September 30, 2026, compared to 7.4x as of June 30, 2026. The Company's average "at risk" leverage ratio for the third quarter was 7.6x tangible net book value, compared to 7.4x as of June 30, 2026.

As of September 30, 2026, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.95%, compared to 3.75% as of June 30, 2026, and a weighted average remaining maturity of 10 days, compared to 13 days as of June 30, 2026. As of September 30, 2026, $45.7 billion, or 53%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC.

HEDGING ACTIVITIES
As of September 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 90% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 73% as of June 30, 2026. Excluding option-based hedges, the Company's hedge portfolio covered 97% of its funding liabilities as of September 30, 2026, compared to 82% as of June 30, 2026.

As of September 30, 2026, the Company's pay fixed interest rate swap position totaled $74.6 billion in notional amount, with an average fixed pay rate of 2.96%, an average floating receive rate of 3.90% and an average maturity of 4.3 years, compared to $73.8 billion, 2.76%, 3.68% and 4.0 years, respectively, as of June 30, 2026.

As of September 30, 2026, the Company had a net short U.S. Treasury position of $11.1 billion and receiver swaptions of $6.3 billion outstanding, compared to a $2.1 billion net short U.S. Treasury position, net receiver swaptions of $7.8 billion and a two-year swap equivalent long SOFR futures position of $2.6 billion as of June 30, 2026.

OTHER GAIN (LOSS), NET
For the third quarter, the Company recorded a net loss of $(1,731) million in other gain (loss), net, or $(1.44) per common share, compared to a net gain of $379 million, or $0.33 per common share, for the prior quarter. Other gain (loss), net for the third quarter was comprised of:

$(17) million of net realized losses on sales of investment securities;
$(5,015) million of net unrealized losses on investment securities measured at fair value through net income;
$153 million of interest rate swap periodic income;
$2,052 million of net gains on interest rate swaps;
$(34) million of net losses on interest rate swaptions;
$6 million of net gains on SOFR futures;
$1,228 million of net gains on U.S. Treasury positions;
$28 million of TBA dollar roll income;
$(134) million of net mark-to-market losses on TBA securities; and
$2 million of other miscellaneous gains.

OTHER COMPREHENSIVE LOSS
During the third quarter, the Company recorded other comprehensive income (loss) of $(140) million, or $(0.11) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(7) million, or $(0.01) per common share, in the prior quarter.

COMMON STOCK DIVIDENDS
During the third quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of July 31, August 31, and September 30, 2026, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the third quarter of 2026, the Company has declared a total of $16.8 billion in common stock dividends, or $51.16 per common share.

FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS
The following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures.

AGNC INVESTMENT CORP.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Assets:

Agency securities, at fair value (including pledged securities of $86,455, $80,761, $77,364, $74,149 and $68,821, respectively)

$                    91,394

$                    86,784

$                    84,447

$                    81,003

$                    76,198

Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities)

—

—

—

85

88

Credit risk transfer securities, at fair value (including pledged securities of $468, $525, $545, $558 and $554, respectively)

515

573

593

606

609

Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of $7, $8, $8, $13 and $15, respectively)

95

94

93

95

97

U.S. Treasury securities, at fair value (including pledged securities of $11,992, $11,295, $12,313, $13,056 and $5,431, respectively)

13,028

12,325

12,582

13,477

5,927

Cash and cash equivalents

468

457

493

450

450

Restricted cash

1,765

1,329

1,864

1,292

1,461

Derivative assets, at fair value

851

260

178

169

145

Receivable for investment securities sold (including pledged securities of $198, $201, $0, $149 and $1,340, respectively)

230

401

—

152

1,502

Receivable under reverse repurchase agreements

23,826

18,433

17,644

16,615

21,399

Goodwill

526

526

526

526

526

Other assets (including pledged securities of $0, $0, $0, $0 and $74, respectively)

734

578

477

607

567

Total assets

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Liabilities:

Repurchase agreements

$                    96,719

$                    89,808

$                    87,616

$                    85,286

$                    74,152

Debt of consolidated variable interest entities, at fair value

—

—

—

56

58

Payable for investment securities purchased

279

312

933

193

1,225

Derivative liabilities, at fair value

646

137

440

6

87

Dividends payable

197

184

182

182

170

Obligation to return securities borrowed under reverse repurchase agreements, at fair value

23,542

18,150

17,032

16,452

20,802

Accounts payable and other liabilities

489

626

513

509

1,031

Total liabilities

121,872

109,217

106,716

102,684

97,525

Stockholders' equity:

Preferred Stock - aggregate liquidation preference of $2,033

1,968

1,968

1,968

1,968

1,968

Common stock - $0.01 par value; 1,261.8, 1,164.2, 1,147.8, 1,107.6 and 1,072.7 shares issued and outstanding, respectively

13

12

11

11

11

Additional paid-in capital

20,827

19,830

19,656

19,261

18,892

Retained deficit

(10,770)

(8,929)

(9,123)

(8,524)

(9,038)

Accumulated other comprehensive loss

(478)

(338)

(331)

(323)

(389)

Total stockholders' equity

11,560

12,543

12,181

12,393

11,444

Total liabilities and stockholders' equity

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

AGNC INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Interest income:

Interest income

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Interest expense

794

709

731

738

755

Net interest income

402

305

319

206

148

Other gain (loss), net:

Realized (loss) gain on sale of investment securities, net

(17)

(16)

74

(26)

(81)

Unrealized (loss) gain on investment securities measured at fair value through net income, net

(5,015)

(90)

(889)

475

805

Gain (loss) on derivative instruments and other investments, net

3,301

485

382

340

(36)

Total other (loss) gain, net

(1,731)

379

(433)

789

688

Expenses:

Compensation and benefits

16

19

23

30

20

Other operating expense

12

11

11

11

10

Total operating expense

28

30

34

41

30

Net income (loss)

(1,357)

654

(148)

954

806

Dividend on preferred stock

45

44

44

46

42

Net income (loss) available (attributable) to common stockholders

$                    (1,402)

$                         610

$                       (192)

$                         908

$                         764

Net income (loss)

$                    (1,357)

$                         654

$                       (148)

$                         954

$                         806

Unrealized (loss) gain on investment securities measured at fair value through other comprehensive income (loss), net

(140)

(7)

(8)

66

61

Comprehensive income (loss)

(1,497)

647

(156)

1,020

867

Dividend on preferred stock

45

44

44

46

42

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,200.5

1,162.0

1122.6

1094.6

1056.6

Net income (loss) per common share - basic

$                      (1.17)

$                        0.53

$                      (0.17)

$                        0.83

$                        0.73

Net income (loss) per common share - diluted

$                      (1.17)

$                        0.52

$                      (0.17)

$                        0.83

$                        0.72

Comprehensive income (loss) per common share - basic

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Comprehensive income (loss) per common share - diluted

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Dividends declared per common share

$                        0.36

$                        0.36

$                        0.36

$                        0.36

$                        0.36

AGNC INVESTMENT CORP.

RECONCILIATION OF GAAP COMPREHENSIVE INCOME (LOSS) TO NET SPREAD AND DOLLAR ROLL INCOME (NON-GAAP MEASURE) 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Adjustments to exclude realized and unrealized (gains) losses reported through net income:

Realized (gain) loss on sale of investment securities, net

17

16

(74)

26

81

Unrealized (gain) loss on investment securities measured at fair value through net income, net

5,015

90

889

(475)

(805)

(Gain) loss on derivative instruments and other securities, net

(3,301)

(485)

(382)

(340)

36

Adjustment to exclude unrealized (gain) loss reported through other comprehensive income:

Unrealized (gain) loss on available-for-sale securities measured at fair value through other comprehensive income, net

140

7

8

(66)

(61)

Other adjustments:

Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income 4,5

28

44

51

27

23

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Other interest income (expense), net 4,7

—

3

6

9

7

Net spread and dollar roll income available to common stockholders

$                         444

$                         462

$                         475

$                         379

$                         365

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,205.1

1,162.0

1,127.3

1,094.6

1,056.6

Net spread and dollar roll income per common share - basic

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

Net spread and dollar roll income per common share - diluted

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

AGNC INVESTMENT CORP.

NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Adjusted net interest and dollar roll income:

Economic interest income:

Investment securities - GAAP interest income 8

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income - implied interest income 4,9

91

155

140

169

135

Economic interest income

1,221

1,174

1,185

1,120

1,052

Economic interest expense:

Repurchase agreements and other debt - GAAP interest expense

(794)

(709)

(731)

(738)

(755)

TBA dollar roll income - implied interest expense 4,10

(63)

(111)

(89)

(142)

(112)

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Economic interest expense

(704)

(641)

(638)

(663)

(622)

Adjusted net interest and dollar roll income

$                         517

$                         533

$                         547

$                         457

$                         430

Net interest spread:

Average asset yield:

Investment securities - average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast

(0.29) %

0.02 %

(0.02) %

0.03 %

0.08 %

Investment securities average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

TBA securities - average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Average asset yield 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Average total cost of funds:

Repurchase agreements and other debt - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Average cost of funds, before interest rate swap periodic income, net 11

3.76 %

3.70 %

3.75 %

4.11 %

4.42 %

Interest rate swap periodic income, net 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds 13

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Average net interest spread

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

AGNC INVESTMENT CORP.

KEY STATISTICS*

(in millions, except per share data)

(unaudited)

Three Months Ended

Key Balance Sheet Statistics:

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Investment securities: 8

Fixed-rate Agency MBS, at fair value - as of period end

$                    86,874

$                    82,334

$                    80,466

$                    77,483

$                    73,283

Other Agency MBS, at fair value - as of period end

$                      4,520

$                      4,450

$                      3,981

$                      3,605

$                      3,003

Credit risk transfer securities, at fair value - as of period end

$                         515

$                         573

$                         593

$                         606

$                         609

Non-Agency MBS, at fair value - as of period end 14

$                           23

$                           24

$                           24

$                           25

$                           28

Total investment securities, at fair value - as of period end

$                    91,932

$                    87,381

$                    85,064

$                    81,719

$                    76,923

Total investment securities, at cost - as of period end

$                    98,178

$                    88,471

$                    86,058

$                    81,817

$                    77,563

Total investment securities, at par - as of period end

$                    97,917

$                    87,896

$                    84,847

$                    80,830

$                    76,625

Average investment securities, at cost

$                    91,905

$                    83,366

$                    84,814

$                    77,562

$                    74,783

Average investment securities, at par

$                    91,467

$                    82,557

$                    83,659

$                    76,647

$                    73,836

TBA securities: 15

Net TBA portfolio - as of period end, at fair value

$                      2,368

$                      9,728

$                      9,548

$                    12,988

$                    13,841

Net TBA portfolio - as of period end, at cost

$                      2,438

$                      9,676

$                      9,742

$                    12,917

$                    13,805

Net TBA portfolio - as of period end, carrying value

$                         (70)

$                           52

$                       (194)

$                           71

$                           36

Average net TBA portfolio, at cost

$                      6,809

$                    12,729

$                    10,343

$                    13,764

$                    10,163

Average repurchase agreements and other debt 16

$                    82,362

$                    75,070

$                    77,120

$                    69,943

$                    66,654

Average stockholders' equity 17

$                    12,206

$                    12,447

$                    12,405

$                    11,828

$                    10,732

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

Tangible net book value "at risk" leverage - average 18

7.6 :1

7.4 :1

7.4 :1

7.4 :1

7.5 :1

Tangible net book value "at risk" leverage - as of period end 19

7.9 :1

7.4 :1

7.4 :1

7.2 :1

7.6 :1

Key Performance Statistics:

Investment securities: 8

Average coupon

5.08 %

5.14 %

5.27 %

5.19 %

5.20 %

Average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

Average coupon - as of period end

5.04 %

5.05 %

5.25 %

5.19 %

5.17 %

Average asset yield - as of period end

4.99 %

4.91 %

4.93 %

4.93 %

4.94 %

Average actual CPR for securities held during the period

8.2 %

13.0 %

13.2 %

9.7 %

8.3 %

Average forecasted CPR - as of period end

6.7 %

8.6 %

10.3 %

9.6 %

8.6 %

Total premium amortization benefit (cost) 24

$                           34

$                         (47)

$                         (52)

$                         (51)

$                         (57)

TBA securities:

Average coupon - as of period end 20

5.23 %

4.89 %

4.11 %

4.98 %

5.11 %

Average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Combined investment and TBA securities - average asset yield, excluding "catch-up" premium amortization 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Cost of funds: 13

Repurchase agreements - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Interest rate swaps - average periodic income 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Repurchase agreements - average funding cost as of period end

3.95 %

3.75 %

3.77 %

3.98 %

4.38 %

Interest rate swaps - average net pay/(receive) rate as of period end 21

(0.94) %

(0.92) %

(1.01) %

(1.29) %

(1.76) %

Net interest spread:

Combined investment and TBA securities average net interest spread, excluding "catch-up" premium amortization

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

Expenses % of average stockholders' equity - annualized

0.92 %

0.96 %

1.10 %

1.39 %

1.12 %

Economic return (loss) on tangible common equity - unannualized 22

(12.7) %

6.7 %

(1.6) %

11.6 %

10.6 %

Key Interest Rate Hedge Statistics

Interest rate swaps:

Average interest rate swaps, notional amount (excluding forward starting swaps), net

$                    73,619

$                    75,216

$                    71,607

$                    59,863

$                    45,656

Average pay-fixed rate

2.89 %

2.71 %

2.65 %

2.56 %

2.25 %

Average receive-floating rate

3.71 %

3.65 %

3.67 %

3.98 %

4.35 %

U.S. Treasury securities:

Average short U.S. Treasury securities, at cost

$                    19,639

$                    16,939

$                    16,772

$                    18,414

$                    21,466

Average short U.S. Treasury securities yield

4.29 %

4.23 %

4.25 %

4.18 %

4.21 %

Average long U.S. Treasury securities, at cost

$                    12,882

$                    12,370

$                    12,033

$                    12,964

$                      4,749

Average long U.S. Treasury securities yield

3.71 %

3.70 %

3.71 %

3.74 %

4.01 %

U.S. Treasury futures:

Average short U.S. Treasury futures, at cost

$                      6,142

$                      4,006

$                      3,210

$                      1,901

$                      1,834

Average short U.S. Treasury futures implied yield 23

4.91 %

4.73 %

4.64 %

4.71 %

4.60 %

Average long U.S. Treasury futures, at cost

$                      8,862

$                      9,917

$                    11,147

$                         708

$                           —

Average long U.S. Treasury futures implied yield 23

4.32 %

3.89 %

3.71 %

3.92 %

— %

Average reverse repurchase agreement rate

3.67 %

3.63 %

3.68 %

4.00 %

4.34 %

*Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise noted.

Numbers in financial tables may not total due to rounding.

Tangible net book value per common share excludes preferred stock liquidation preference and goodwill.
Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures.
"Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations. Amount is net of "catch-up" discount accretion benefit/cost. 
Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations.
Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments.
Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits.
Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense).
Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations.
The average implied asset yield and associated gross income for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period.
The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market-based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for TBA transactions represents the Company's long TBA position only, weighted based on the Company's daily average long TBA position outstanding for the period.
Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost.
Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)).
Cost of funds excludes U.S. Treasury, option-based, and other supplemental hedges used to hedge a portion of the Company's interest rate risk and U.S. Treasury Repo.
Non-Agency MBS, at fair value, excludes $72 million, $70 million, $69 million, $70 million and $69 million of other mortgage credit investments held as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively.
Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities.
Average repurchase agreements and other debt excludes U.S. Treasury Repo.
Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter.
Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo.
Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity and unsettled equity issuances, adjusted to exclude goodwill. Unsettled equity issuances totaled $110 million, $0 million, $0 million, $0 million and $0 million as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively. Leverage excludes U.S. Treasury Repo. 
Average TBA coupon is for the long TBA position only.
Includes forward starting swaps not yet in effect as of reported period-end.
Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share.
The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model.
Total premium amortization (cost) benefit is net of discount accretion benefit (cost).

STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on October 20, 2026 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.

A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q3 2026 Stockholder Presentation link to download the presentation in advance of the stockholder call.

An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on October 20, 2026. In addition, there will be a phone recording available one hour after the call on October 20, 2026 through November 3, 2026. Those who are interested in hearing the recording of the presentation, can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 5388054.

For further information, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. AGNC is a member of many broad market indices, including the S&P MidCap 400, the S&P Composite 1500, the Russell 1000, the Russell 3000, and the Nasdaq Composite.

We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in Agency MBS and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread."

Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/ cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/ expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/ expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).

By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.

Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/ loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.

However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies.

A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release.

CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9303

SOURCE AGNC Investment Corp.

, /PRNewswire/ -- On October 19, 2026, the Board of Directors of West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, declared a fourth-quarter dividend of $0.26 per share on the Company's common stock, an 18% increase over the $0.22 per share paid in the prior quarter. This is the thirty-fourth consecutive annual increase in the Company's dividend. The dividend is payable on November 18, 2026, to shareholders of record on November 11, 2026.

About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life saving and life enhancing medicines for patients. With over 10,000 team members across 50 sites including 26 manufacturing facilities worldwide, West helps support our customers by delivering over 41 billion components and devices each year.

Headquartered in Exton, Pennsylvania, West in its fiscal year 2025 generated $3.07 billion in net sales. West is traded on the New York Stock Exchange (NYSE: WST) and is included on the Standard & Poor's 500 index. For more information, visit www.westpharma.com. 

All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted. 

Media Contact:
Michele Polinsky
Vice President, Global Communications
+1-610-594-3054
[email protected]

SOURCE West Pharmaceutical Services, Inc.

The Canadian dollar strengthened despite a slightly softer-than-expected CPI report, as rising longer-term inflation expectations complicated the Bank of Canada's rate outlook. With the BoC meeting on 28 October, conflicting inflation signals could shape expectations for USD/CAD and AUD/CAD.

View related analysis:

USD/CAD, GBP/CAD Price Action Hints at a Potential GBP/USD Bounce
FX Futures Positioning: US Dollar Bulls Face Crowded FX Shorts
AUD/USD: Are Record Short Bets a Breakout Signal or Sentiment Extreme?
Gold Hints at Quiet Accumulation Despite Persistent US Dollar Strength

Canadian Dollar Holds Firm as BoC Inflation Risks Persist
The Canadian dollar strengthened against most FX majors on Monday despite a slightly softer-than-expected CPI report and reduced expectations of an October BoC hike. Headline CPI rose 3.1% y/y, just below the 3.2% expected, while trimmed mean inflation eased to 1.84%. That divergence suggests inflationary pressures remain relatively contained beneath the headline figure, giving the BoC some breathing room ahead of its 28 October meeting.

BoC Surveys Reveal Persistent Inflation Risks
However, the BoC's quarterly surveys presented a less dovish picture. While consumer inflation expectations edged lower over the one- and two-year horizons, five-year expectations rose to 3.9% from 3.4% in Q2, their highest level in the available series since 2015. Businesses also reported persistent inflation pressures from energy prices and tariffs, raising concerns that price increases could become more widespread.

This divergence may help explain why CAD remained supported despite softer near-term BoC pricing. While an October hold appears increasingly likely, elevated longer-term inflation expectations suggest the tightening cycle may not be over. Attention now turns to whether the BoC's updated projections reinforce expectations of further hikes later this year or into 2027.

USD/CAD Technical Analysis: US Dollar vs Canadian Dollar
The potential pullback I had been circling for USD/CAD has finally got underway, with last week’s bearish engulfing candle snapping a five-week winning streak. It is also the third candle of the bearish reversal pattern known as an evening star formation. Prices continued lower on Monday following the hotter long-term inflation outlook, even though the US dollar index held its ground.

The daily chart shows that Monday’s low found support almost perfectly at the monthly pivot point and 50-day EMA. And with the daily RSI (2) oversold below 10 and a lower wick on the daily candle, perhaps we’ve seen the best part of the initial move lower for USD/CAD. Bears may therefore be seeking to fade smaller bounces into resistance levels from here, which brings the 2025 high, 1.42 handle or June high into focus – in anticipation of a move down towards 1.40.

Source: ICE, TradingView

AUD/CAD Technical Analysis: Australian Dollar vs Canadian Dollar
Momentum has turned lower on AUD/CAD after a very brief parity party – and with traders less certain of RBA hikes, the cross has the potential to move lower. Note that the AU–CA two-year yield spread is heading lower ahead of prices as markets continue to reprice relative expectations between the RBA and BoC.

Last week’s candle wasn’t quite a bearish engulfing – but it was close enough. The daily chart shows a shooting star candle on Thursday and a lower high, ahead of a direct break beneath the monthly pivot point down to monthly S1. While AUD/CAD is showing signs of support around S1, bears may be seeking to fade minor rallies within Thursday’s bearish candle in anticipation of a move down to the April 2021 high or 200-day EMA. A break beneath these levels would bring the 50-week EMA into focus near the 0.97 handle.

Source: ICE, TradingView

, /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders of $262 million, or $1.78 per diluted common share, for the third quarter of 2026. This compares with net earnings of $221 million, or $1.48 per diluted common share, in the third quarter of 2025, and $452 million, or $3.05 per diluted common share, in the second quarter of 2026.

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "Third quarter earnings per share increased 20% to $1.78, up from $1.48 a year ago. The higher earnings were primarily a reflection of improved credit quality, as net loan charge-offs were $3 million, down from $56 million a year ago. Although an increased pace of loan payoffs, combined with a highly competitive market, produced flat loan growth compared to the second quarter, customer deposits grew nearly 10% annualized from second quarter levels."

Mr. Simmons continued, "Short- and medium-term interest rates began to rise in the last month of the quarter, and we expect that our moderately asset-sensitive balance sheet should produce stronger net interest income in a higher rate environment, while we're seeing continued improvement in noninterest income that we expect will continue into next year."

Mr. Simmons concluded, "We were pleased to complete the acquisition of Basis Multifamily Finance I, LLC, a subsidiary of Basis Investment Group, at the end of July. This multifamily finance platform becomes an important strategic advantage in serving our commercial real estate clients, particularly in the fast-growing western markets we serve."

For the complete third quarter 2026 earnings release, including detailed financial schedules, please visit www.zionsbancorporation.com.

Supplemental Presentation and Conference Call

Zions has posted a supplemental presentation to its website in advance of its discussion of third quarter financial results, scheduled for 5:30 p.m. ET on October 19, 2026. Media representatives, analysts, investors, and the general public are invited to participate by calling (877) 709-8150 (domestic and international) and entering the meeting number 13763140, or by joining the on-demand webcast. A link to the webcast will be available on the Company's website at www.zionsbancorporation.com. Following the event, the webcast will be archived and accessible for 30 days.

About Zions Bancorporation, N.A.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with annual net revenue of $3.4 billion in 2025, and total assets of approximately $89 billion at December 31, 2025. The Bank operates principally through seven separately managed, geographically defined bank divisions, each operating under its own local brand and management, and serving customers primarily in 11 Western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.

Zions is a consistent recipient of national and state-level customer survey awards recognizing excellence in small- and middle-market banking. It is also a leader in public finance advisory services and Small Business Administration lending. Zions is included in both the S&P MidCap 400 and NASDAQ Financial 100 indices. Additional investor information, along with links to local banking brands, is available at www.zionsbancorporation.com.

Forward-Looking Information

The earnings release contains "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and assumptions regarding future events and outcomes. However, they are inherently subject to known and unknown risks, uncertainties, and other factors that could cause actual results, performance, achievements, industry developments, or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements may include, among others:

Statements concerning the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, operating results, and performance of Zions Bancorporation, National Association, and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and Statements preceded or followed by, or that include, terminology such as "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecast," "expect," "intend," "target," "commit," "design," "plan," "project," "will," or similar words and expressions, including their negative forms. Forward-looking statements are not guarantees and should not be relied upon as representing management's views as of any subsequent date. Actual results and outcomes may differ materially from those expressed or implied. Factors that could cause such differences include, but are not limited to:

Changes in the quality, composition, and concentrations of our loan and investment securities portfolios; Changes in economic, political, and market conditions nationally and within our key markets in the Western United States, including changes in interest rates, inflation, monetary policy, fiscal, trade, and tax policies, government actions, and other macroeconomic factors that affect our financial results, customer activity, credit demand, and borrower performance; Changes in deposit levels and composition, access to wholesale funding, and the availability and cost of liquidity sources; Changes in our credit ratings; Competition from traditional and nonbank financial service providers, including credit unions, financial technology companies ("fintechs"), private credit funds, special-purpose charters, and other new and evolving industry participants; Our ability to execute strategic initiatives, manage expenses, attract and retain talent, and achieve our business objectives; Geopolitical developments, including wars, global conflicts, and environmental or catastrophic events, such as fires, natural disasters, pandemics, and other disruptions that may affect our operations and customers; Increased demand for and risks associated with the adoption and integration of emerging technologies and products, including tokenized deposits, stablecoins, blockchain, and artificial intelligence ("AI"); The occurrence of fraud, theft, or other forms of misconduct perpetrated by external parties, including customers and business partners, or by our own employees; Our ability to develop, maintain, and secure resilient technology systems and effective controls to detect and respond to fraud, cybersecurity threats, data breaches, and other operational disruptions, including increasingly sophisticated AI-enabled attacks; Our ability to effectively oversee third-party providers and mitigate risks arising from supplier performance failures, cybersecurity incidents, technology disruptions, data breaches, or other operational deficiencies; Changes in accounting standards, asset valuations and impairments, and our ability to access capital and funding markets on favorable terms; The impact of existing and proposed laws and regulations, supervisory expectations, and the outcome of legal or regulatory proceedings; Adverse developments affecting the banking industry that may negatively impact depositor, investor, or market confidence and public opinion; and Other assumptions, risks, and uncertainties described in the earnings release and our other SEC filings. We caution against placing undue reliance on forward-looking statements, as they reflect our views only as of the date they are issued. Except as required by law, we expressly disclaim any obligation to update any factors or publicly announce revisions to forward-looking statements to reflect future events or developments.

SOURCE Zions Bancorporation

, /PRNewswire/ -- As previously announced on October 1, 2026, Thomson Reuters (TSX/Nasdaq: TRI) ("the company") sold a 51% stake in its Global Print business to capital accounts advised by KKR, with the two parties forming a joint venture to operate the Global Print business, now operating as Westbridge Print.

As a result of this transaction, Thomson Reuters will report Global Print as discontinued operations beginning in the third-quarter of 2026.  Prior periods presented will be restated to reflect this change.  A supplemental schedule has been posted to the "Investor Relations" section of thomsonreuters.com with revised 2025 and 2026 results that exclude the Global Print business.

On August 5, 2026, the company provided a third-quarter 2026 outlook for organic revenue growth of approximately 8% and adjusted EBITDA margin of approximately 36%, which included the results of the Global Print business. Calculated on the basis the company will use to report its third-quarter results, the previously provided outlook would have been approximately 9% organic revenue growth and approximately 35% adjusted EBITDA margin.

The revised historical information and the third-quarter 2026 outlook do not reflect certain arrangements that began on October 1, 2026, namely:

Westbridge Print will pay a royalty to Thomson Reuters equal to 20% of its Professional revenue (approximately 85% – 90% of total Westbridge Print revenue) for the exclusive license to distribute the company's intellectual property in print and on ProView, its eBook platform.  
Westbridge Print has entered into a multi-year agreement with Thomson Reuters where it will reimburse the company for certain transition services as the joint venture migrates to a standalone entity.

Beginning with fourth-quarter results, the impact of the royalty and transitional services arrangements are expected to largely offset stranded costs from the separation. As a result, the company continues to expect the impact from the Global Print transaction to be approximately neutral to adjusted EBITDA margin following the transaction close, as well as 60 – 70 basis points accretive to annual organic revenue growth.

The company will issue a revised full-year 2026 outlook when it reports its third-quarter earnings on November 3, 2026.

Thomson Reuters
Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, audit, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit thomsonreuters.com.

NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

This news release and accompanying web site post include certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, adjusted earnings and adjusted EPS, as well as financial measures for the "Big 3" segments.  Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the supplemental schedules provided herein and on the website. Changes in revenues computed on an organic basis represent changes in revenues of the company's existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods.

Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. The company's 2026 outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for purposes of its outlook only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including statements regarding the company's expectations with respect to impacts from certain arrangements entered into with the Global Print joint venture are forward looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict.

Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 19-32 in the "Risk Factors" section of the company's 2025 annual report. These and other risk factors are discussed in materials that Thomson Reuters from time-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters' annual and quarterly reports are also available in the "Investor Relations" section of thomsonreuters.com.

The company's 2026 business outlook is based on information currently available to the company and is based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its 2026 business outlook. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's 2026 business outlook assumes that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2026 outlook see pages 18-19 of the company's second-quarter management's discussion and analysis (MD&A) for the period ended June 30, 2026. The company's quarterly MD&A was filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and is also available in the "Investor Relations" section of thomsonreuters.com.

The company has provided an outlook for the purpose of presenting information about current expectations for the period presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.

Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.

CONTACTS
MEDIA
Zoe Zanettos
Corporate Affairs
+1 647 202 8948
[email protected] 

INVESTORS
Gary E. Bisbee, CFA
Head of Investor Relations
+1 646 540 3249
[email protected] 

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- REVISIONS TO SEGMENT REVENUES, ADJUSTED EBITDA AND THE RELATED MARGINS

     October 19, 2026

REVISED CONSOLIDATED ADJUSTED EARNINGS

Page 3

(UNAUDITED)

(millions of U.S. dollars, except margins)

On October 1, 2026, Thomson Reuters sold a 51% stake in its Global Print business to capital accounts advised by KKR, with the two parties forming a joint venture to operate the Global Print business, now operating as Westbridge Print. As a result of this transaction, Thomson Reuters will report Global Print in discontinued operations beginning in the third-quarter of 2026. Prior periods presented will be restated to reflect this change. The following supplemental information provides revised business segment information for each quarter and the six-month period of 2026, excluding the Global Print business. The information provides the company's historical results on a continuing operations basis. Refer to the company's press release dated October 19, 2026, "Thomson Reuters Provides Supplemental Financial Information Following Close of Global Print Transaction" for further information.

2026 QUARTERLY & JUNE YEAR-TO-DATE (YTD)

AS REPORTED

ADJUSTMENTS

AS REVISED

Q1 2026

Q2 2026

YTD 2026

Q1 2026

Q2 2026

YTD 2026

Q1 2026

Q2 2026

YTD 2026

Revenues

Legal Professionals

$756

$772

$1,528

-

-

-

$756

$772

$1,528

Corporates

608

537

1,145

-

-

-

608

537

1,145

Tax, Audit & Accounting Professionals

410

311

721

-

-

-

410

311

721

"Big 3" segments combined (1)

1,774

1,620

3,394

-

-

-

1,774

1,620

3,394

Reuters 

212

229

441

-

-

-

212

229

441

Global Print

112

111

223

(112)

(111)

(223)

-

-

-

Eliminations/Rounding

(11)

(6)

(17)

-

-

-

(11)

(6)

(17)

Total revenues

$2,087

$1,954

$4,041

($112)

($111)

($223)

$1,975

$1,843

$3,818

Adjusted EBITDA

Legal Professionals

$365

$371

$736

-

-

-

$365

$371

$736

Corporates

243

200

443

-

-

-

243

200

443

Tax, Audit & Accounting Professionals

221

120

341

-

-

-

221

120

341

"Big 3" segments combined (1)

829

691

1,520

-

-

-

829

691

1,520

Reuters 

34

48

82

-

-

-

34

48

82

Global Print

43

42

85

(43)

(42)

(85)

-

-

-

Corporate costs

(25)

(36)

(61)

(27)

(25)

(52)

(52)

(61)

(113)

Total adjusted EBITDA (1)

$881

$745

$1,626

($70)

($67)

($137)

$811

$678

$1,489

Adjusted EBITDA margin

Legal Professionals

48.3 %

48.1 %

48.2 %

-

-

-

48.3 %

48.1 %

48.2 %

Corporates

40.0 %

37.2 %

38.7 %

-

-

-

40.0 %

37.2 %

38.7 %

Tax, Audit & Accounting Professionals

53.8 %

38.7 %

47.3 %

-

-

-

53.8 %

38.7 %

47.3 %

"Big 3" segments combined (1)

46.7 %

42.7 %

44.8 %

-

-

-

46.7 %

42.7 %

44.8 %

Reuters 

16.1 %

20.8 %

18.6 %

-

-

-

16.1 %

20.8 %

18.6 %

Global Print

38.6 %

37.7 %

38.2 %

-

-

-

-

-

-

Total adjusted EBITDA margin (1)

42.2 %

38.1 %

40.2 %

(110) bp

(130) bp

(120) bp

41.1 %

36.8 %

39.0 %

Adjusted earnings

Adjusted EBITDA

$881

$745

$1,626

($70)

($67)

($137)

$811

$678

$1,489

Adjustments:

Depreciation and Software Amortization (2)

(165)

(168)

(333)

2

2

4

(163)

(166)

(329)

Net Interest expense

(39)

(47)

(86)

-

-

-

(39)

(47)

(86)

Income tax

(129)

(94)

(223)

11

10

21

(118)

(84)

(202)

Dividends declared on preference shares

(1)

(1)

(2)

-

-

-

(1)

(1)

(2)

Adjusted earnings (1)

$547

$435

$982

($57)

($55)

($112)

$490

$380

$870

Adjusted earnings per share (1)

$1.23

$0.99

$2.22

($0.13)

($0.13)

($0.25)

$1.10

$0.87

$1.97

Weighted average shares (in millions)

444.7

438.6

441.7

444.7

438.6

441.7

The Company reports its results in millions of U.S. dollars, but computes margins using whole-dollars to be more precise. As a result, adjusted EBITDA margins calculated from reported amounts may differ from those presented.
(1) Non-IFRS measures. Refer to the reconciliations of adjusted EBITDA and adjusted earnings to most comparable IFRS measure and the reconciliation of adjusted EBITDA margin, both of which are included within this post. The "Big 3" segments are the combined Legal Professionals, Corporates and Tax, Audit & Accounting Professionals segments. Information for the "Big 3" segments is useful to management and investors as these businesses will comprise approximately 90% of total company revenues as revised and represent the core of the company's business information services product offerings. All "Big 3" financial measures are non-IFRS.
(2) Represents depreciation and amortization of internally developed software.

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- REVISIONS TO SEGMENT REVENUES, ADJUSTED EBITDA AND THE RELATED MARGINS

     October 19, 2026

REVISED CONSOLIDATED ADJUSTED EARNINGS

Page 4

(Unaudited)

(millions of U.S. dollars, except margins, share and per share amounts)

On October 1, 2026, Thomson Reuters sold a 51% stake in its Global Print business to capital accounts advised by KKR, with the two parties forming a joint venture to operate the Global Print business, now operating as Westbridge Print. As a result of this transaction, Thomson Reuters will report Global Print in discontinued operations beginning in the third-quarter of 2026. Prior periods presented will be restated to reflect this change. The following supplemental information provides revised business segment information for each quarter and the full year of 2025, excluding the Global Print business. The information provides the company's historical results on a continuing operations basis. Refer to the company's press release dated October 19, 2026, "Thomson Reuters Provides Supplemental Financial Information Following Close of Global Print Transaction" for further information.

2025 QUARTERLY & FULL YEAR

AS REPORTED (3)

ADJUSTMENTS

AS REVISED (3)

Q1 2025

Q2 2025

Q3 2025

Q4 2025 

FY 2025 

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Revenues

Legal Professionals

$688

$704

$721

$730

$2,843

-

-

-

-

-

$688

$704

$721

$730

$2,843

Corporates

548

480

489

506

2,023

-

-

-

-

-

548

480

489

506

2,023

Tax, Audit & Accounting Professionals

358

274

247

412

1,291

-

-

-

-

-

358

274

247

412

1,291

"Big 3" segments combined (1)

1,594

1,458

1,457

1,648

6,157

-

-

-

-

-

1,594

1,458

1,457

1,648

6,157

Reuters 

196

218

207

232

853

-

-

-

-

-

196

218

207

232

853

Global Print

116

114

124

136

490

(116)

(114)

(124)

(136)

(490)

-

-

-

-

-

Eliminations/Rounding

(6)

(5)

(6)

(7)

(24)

-

-

-

-

-

(6)

(5)

(6)

(7)

(24)

Total revenues

$1,900

$1,785

$1,782

$2,009

$7,476

($116)

($114)

($124)

($136)

($490)

$1,784

$1,671

$1,658

$1,873

$6,986

Adjusted EBITDA

Legal Professionals

$336

$339

$353

$326

$1,354

-

-

-

-

-

$336

$339

$353

$326

$1,354

Corporates

215

172

177

163

727

-

-

-

-

-

215

172

177

163

727

Tax, Audit & Accounting Professionals

208

110

76

220

614

-

-

-

-

-

208

110

76

220

614

"Big 3" segments combined (1)

759

621

606

709

2,695

-

-

-

-

-

759

621

606

709

2,695

Reuters 

39

45

42

48

174

-

-

-

-

-

39

45

42

48

174

Global Print

44

41

46

54

185

(44)

(41)

(46)

(54)

(185)

-

-

-

-

-

Corporate costs

(33)

(29)

(22)

(34)

(118)

(33)

(32)

(33)

(36)

(134)

(66)

(61)

(55)

(70)

(252)

Total adjusted EBITDA (1)

$809

$678

$672

$777

$2,936

($77)

($73)

($79)

($90)

($319)

$732

$605

$593

$687

$2,617

Adjusted EBITDA margin

Legal Professionals

48.7 %

48.1 %

49.0 %

44.7 %

47.6 %

-

-

-

-

-

48.7 %

48.1 %

49.0 %

44.7 %

47.6 %

Corporates

39.3 %

35.7 %

36.3 %

32.2 %

35.9 %

-

-

-

-

-

39.3 %

35.7 %

36.3 %

32.2 %

35.9 %

Tax, Audit & Accounting Professionals

56.6 %

38.9 %

30.6 %

53.4 %

46.9 %

-

-

-

-

-

56.6 %

38.9 %

30.6 %

53.4 %

46.9 %

"Big 3" segments combined (1)

47.3 %

42.3 %

41.7 %

43.0 %

43.6 %

-

-

-

-

-

47.3 %

42.3 %

41.7 %

43.0 %

43.6 %

Reuters 

20.0 %

20.8 %

19.9 %

21.0 %

20.4 %

-

-

-

-

-

20.0 %

20.8 %

19.9 %

21.0 %

20.4 %

Global Print

37.8 %

36.0 %

37.1 %

39.6 %

37.7 %

-

-

-

-

-

-

-

-

-

-

Total adjusted EBITDA margin (1)

42.3 %

37.8 %

37.7 %

38.7 %

39.2 %

(150) bp

(180) bp

(190) bp

(200) bp

(180) bp

40.8 %

36.0 %

35.8 %

36.7 %

37.4 %

Adjusted earnings

Adjusted EBITDA

$809

$678

$672

$777

$2,936

($77)

($73)

($79)

($90)

($319)

$732

$605

$593

$687

$2,617

Adjustments:

Depreciation and Software Amortization (2)

(152)

(154)

(158)

(162)

(626)

2

2

3

2

9

(150)

(152)

(155)

(160)

(617)

Net Interest expense

(30)

(35)

(38)

(40)

(143)

-

-

-

-

-

(30)

(35)

(38)

(40)

(143)

Income tax

(120)

(94)

(92)

(95)

(401)

12

11

12

16

51

(108)

(83)

(80)

(79)

(350)

Dividends declared on preference shares

(1)

(1)

(1)

(1)

(4)

-

-

-

-

-

(1)

(1)

(1)

(1)

(4)

Adjusted earnings (1)

$506

$394

$383

$479

$1,762

($63)

($60)

($64)

($72)

($259)

$443

$334

$319

$407

$1,503

Adjusted earnings per share (1)

$1.12

$0.87

$0.85

$1.07

$3.92

($0.14)

($0.13)

($0.14)

($0.16)

($0.58)

$0.98

$0.74

$0.71

$0.91

$3.34

Weighted average shares (in millions)

450.8

451.2

450.3

445.6

449.5

450.8

451.2

450.3

445.6

449.5

The Company reports its results in millions of U.S. dollars, but computes margins using whole-dollars to be more precise. As a result, adjusted EBITDA margins calculated from reported amounts may differ from those presented.
(1) Non-IFRS measures. Refer to the reconciliations of adjusted EBITDA and adjusted earnings to most comparable IFRS measure and the reconciliation of adjusted EBITDA margin, both of which are included within this post. The "Big 3" segments are the combined Legal Professionals, Corporates and Tax, Audit & Accounting Professionals segments. Information for the "Big 3" segments is useful to management and investors as these businesses comprise approximately 90% of total company revenues as revised and represent the core of the company's business information services product offerings. All "Big 3" financial measures are non-IFRS.
(2) Represents depreciation and amortization of internally developed software.
(3) Reflects February 5, 2026 revisions between Legal Professionals, Corporates and Tax, Audit & Accounting Professionals to transfer certain customers reflecting how the segments are managed prospectively.

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- RECONCILIATION OF EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (1)

October 19, 2026

(Unaudited)

                   Page 5

(millions of U.S. dollars)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Three Months Ended December 31, 2025

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

Earnings from continuing operations

$425

($63)

$362

$297

($60)

$237

$428

($64)

$364

$333

($71)

$262

Adjustments to remove:

Tax expense

92

(12)

80

52

(11)

41

121

(12)

109

158

(16)

142

Other finance costs (income)

10

-

10

48

-

48

(7)

-

(7)

4

-

4

Net interest expense

30

-

30

35

-

35

38

-

38

40

-

40

Amortization of other identifiable intangible assets

25

-

25

24

-

24

24

-

24

25

-

25

Amortization of software

174

-

174

178

-

178

182

(1)

181

187

-

187

Depreciation

27

(2)

25

28

(2)

26

28

(2)

26

28

(2)

26

EBITDA

783

(77)

706

662

(73)

589

814

(79)

735

775

(89)

686

Adjustments to remove:

Share of post-tax losses in equity method investments

6

-

6

4

-

4

13

-

13

5

-

5

Other operating losses (gains), net

3

-

3

(5)

-

(5)

(160)

-

(160)

(2)

(1)

(3)

Fair value adjustments (2)

17

-

17

17

-

17

5

-

5

(1)

-

(1)

Adjusted EBITDA(1)

$809

($77)

$732

$678

($73)

$605

$672

($79)

$593

$777

($90)

$687

Full Year Ended December 31, 2025

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

YTD (Six Months Ended June 30, 2026)

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

Earnings from continuing operations

$1,483

($258)

$1,225

$477

($57)

$420

$444

($51)

$393

$921

($108)

$813

Adjustments to remove:

Tax expense

423

(51)

372

125

(11)

114

71

(9)

62

196

(20)

176

Other finance costs (income)

55

-

55

(9)

-

(9)

(8)

-

(8)

(17)

-

(17)

Net interest expense

143

-

143

39

-

39

47

-

47

86

-

86

Amortization of other identifiable intangible assets

98

-

98

24

-

24

25

-

25

49

-

49

Amortization of software

721

(1)

720

193

-

193

201

-

201

394

-

394

Depreciation

111

(8)

103

28

(2)

26

27

(2)

25

55

(4)

51

EBITDA

3,034

(318)

2,716

877

(70)

807

807

(62)

745

1,684

(132)

1,552

Adjustments to remove:

Share of post-tax losses in equity method investments

28

-

28

7

-

7

4

-

4

11

-

11

Other operating (gains) losses, net

(164)

(1)

(165)

-

-

-

(68)

(5)

(73)

(68)

(5)

(73)

Fair value adjustments (2)

38

-

38

(3)

-

(3)

2

-

2

(1)

-

(1)

Adjusted EBITDA(1)

$2,936

($319)

$2,617

$881

($70)

$811

$745

($67)

$678

$1,626

($137)

$1,489

(1) The Company defines adjusted EBITDA as earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, Thomson Reuters share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges, and fair value adjustments, including those related to acquired deferred revenue. The related margin is adjusted EBITDA expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. See reconciliation of adjusted EBITDA margin included in this post. These measures provide a consistent basis to evaluate operating profitability and performance trends by excluding items that the Company does not consider to be controllable activities for this purpose.
(2) Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS AND ADJUSTED EPS (earnings per share) (1)

October 19, 2026

(Unaudited)

                   Page 6

(millions of U.S. dollars)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Three Months Ended December 31, 2025

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

Net Earnings

$434

-

$434

$313

-

$313

$423

-

$423

$332

-

$332

Adjustments to remove:

Fair value adjustments (2)

17

-

17

17

-

17

5

-

5

(1)

-

(1)

Amortization of acquired software

49

-

49

52

52

52

-

52

53

-

53

Amortization of other identifiable intangible assets

25

-

25

24

-

24

24

-

24

25

-

25

Other operating losses (gains), net

3

-

3

(5)

-

(5)

(160)

-

(160)

(2)

(1)

(3)

Other finance costs (income)

10

-

10

48

-

48

(7)

-

(7)

4

-

4

Share of post-tax losses in equity method investments

6

-

6

4

-

4

13

-

13

5

-

5

Tax on above items

(24)

-

(24)

(22)

-

(22)

16

-

16

(5)

-

(5)

Tax items impacting comparability

1

-

1

(21)

-

(21)

11

-

11

66

66

(Earnings) loss from discontinued operations, net of tax

(9)

(63)

(72)

(16)

(60)

(76)

5

(64)

(59)

1

(71)

(70)

Interim period effective tax rate normalization (3)

(5)

-

(5)

1

-

1

2

-

2

2

2

Dividends declared on preference shares

(1)

-

(1)

(1)

-

(1)

(1)

-

(1)

(1)

-

(1)

Adjusted Earnings(1)

$506

($63)

$443

$394

($60)

$334

$383

($64)

$319

$479

($72)

$407

Adjusted EPS (1)

$1.12

$0.98

$0.87

$0.74

$0.85

$0.71

$1.07

$0.91

Diluted weighted-average common shares (millions)

450.8

450.8

451.2

451.2

450.3

450.3

445.6

445.6

Full Year Ended December 31, 2025

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

YTD (Six Months Ended June 30, 2026)

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

As Reported

Adjustments

As Revised

Net earnings

$1,502

-

$1,502

$459

-

$459

$448

-

$448

$907

-

$907

Adjustments to remove:

Fair value adjustments (2)

38

-

38

(3)

-

(3)

2

-

2

(1)

-

(1)

Amortization of acquired software

206

-

206

56

-

56

60

-

60

116

-

116

Amortization of other identifiable intangible assets

98

-

98

24

-

24

25

-

25

49

-

49

Other operating gains, net

(164)

(1)

(165)

-

-

-

(68)

(5)

(73)

(68)

(5)

(73)

Other finance costs (income)

55

-

55

(9)

-

(9)

(8)

-

(8)

(17)

-

(17)

Share of post-tax losses in equity method investments

28

-

28

7

-

7

4

-

4

11

-

11

Tax on above items

(35)

-

(35)

(14)

-

(14)

(20)

1

(19)

(34)

1

(33)

Tax items impacting comparability

57

-

57

(1)

(1)

(3)

-

(3)

(4)

-

(4)

(Earnings) loss from discontinued operations, net of tax

(19)

(258)

(277)

18

(57)

(39)

(4)

(51)

(55)

14

(108)

(94)

Interim period effective tax rate normalization (3)

-

-

-

11

-

11

-

-

-

11

-

11

Dividends declared on preference shares

(4)

-

(4)

(1)

(1)

(1)

(1)

(2)

-

(2)

Adjusted Earnings(1)

$1,762

($259)

$1,503

$547

($57)

$490

$435

($55)

$380

$982

($112)

$870

Adjusted EPS (1)

$3.92

$3.34

$1.23

$1.10

$0.99

$0.87

$2.22

$1.97

Diluted weighted-average common shares (millions)

449.5

449.5

444.7

444.7

438.6

438.6

441.7

441.7

(1) The Company defines adjusted earnings as net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, including those related to acquired deferred revenue, amortization of acquired intangible assets (attributable to other identifiable intangible assets and acquired software), other operating gains and losses, certain asset impairment charges, other finance costs or income, our share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Acquired intangible assets contribute to the generation of revenues from acquired companies, which are included in our computation of adjusted earnings. The post-tax amount of each item is excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item. Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. These measures provide a more comparable basis to analyze earnings and are commonly used by shareholders to measure performance.

(2) Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
(3) In interim periods, the company makes an adjustment to reflect income taxes based on the estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which we operate. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods but has no effect on full-year income taxes. 

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- RECONCILIATION OF ADJUSTED EBITDA MARGIN (1)

October 19, 2026

(Unaudited)

                Page 7

(millions of U.S. dollars)

Revised IFRS revenues

Remove fair value
adjustments to acquired
deferred revenue

Revised revenues
excluding fair value
adjustments to acquired
deferred revenue

Revised Adjusted
EBITDA

Revised Adjusted
EBITDA Margin

YTD (Six Months Ended June 30, 2026)

Legal Professionals

$1,528

-

$1,528

$736

48.2 %

Corporates

1,145

-

1,145

443

38.7 %

Tax, Audit & Accounting Professionals

721

-

721

341

47.3 %

"Big 3" Segments Combined(1)

3,394

-

3,394

1,520

44.8 %

Reuters

441

-

441

82

18.6 %

Eliminations/Rounding

(17)

-

(17)

-

n/a

Corporate costs

-

-

-

(113)

n/a

Consolidated totals

$3,818

-

$3,818

$1,489

39.0 %

Three Months ended June 30, 2026

Legal Professionals

$772

-

$772

$371

48.1 %

Corporates

537

-

537

200

37.2 %

Tax, Audit & Accounting Professionals

311

-

311

120

38.7 %

"Big 3" Segments Combined(1)

1,620

-

1,620

691

42.7 %

Reuters

229

-

229

48

20.8 %

Eliminations/Rounding

(6)

-

(6)

-

n/a

Corporate costs

-

-

-

(61)

n/a

Consolidated totals

$1,843

-

$1,843

$678

36.8 %

Three Months March 31, 2026

Legal Professionals

$756

-

$756

$365

48.3 %

Corporates

608

-

608

243

40.0 %

Tax, Audit & Accounting Professionals

410

-

410

221

53.8 %

"Big 3" Segments Combined(1)

1,774

-

1,774

829

46.7 %

Reuters

212

-

212

34

16.1 %

Eliminations/Rounding

(11)

-

(11)

-

n/a

Corporate costs

-

-

-

(52)

n/a

Consolidated totals

$1,975

-

$1,975

$811

41.1 %

(1) To compute segment and consolidated adjusted EBITDA margin, we exclude fair value adjustments related to acquired deferred revenue from our IFRS revenues. The chart above reconciles IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue. 

 
The Company reports its results in millions of U.S. dollars, but computes margins using whole-dollars to be more precise. As a result, adjusted EBITDA margins calculated from reported amounts may differ from those presented.

THOMSON REUTERS CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION- RECONCILIATION OF ADJUSTED EBITDA MARGIN (1)

October 19, 2026

(Unaudited)

   Page 8

(millions of U.S. dollars)

Revised IFRS
revenues

Remove fair value
adjustments to acquired
deferred revenue

Revised revenues
excluding fair value
adjustments to acquired
deferred revenue

Revised Adjusted
EBITDA

Revised Adjusted
EBITDA Margin

Year ended December 31, 2025

Legal Professionals

$2,843

-

$2,843

$1,354

47.6 %

Corporates

2,023

-

2,023

727

35.9 %

Tax, Audit & Accounting Professionals

1,291

20

1,311

614

46.9 %

"Big 3" Segments Combined(1)

6,157

20

6,177

2,695

43.6 %

Reuters

853

-

853

174

20.4 %

Eliminations/Rounding

(24)

-

(24)

-

n/a

Corporate costs

-

-

-

(252)

n/a

Consolidated totals

$6,986

$20

$7,006

$2,617

37.4 %

Three Months ended December 31, 2025

Legal Professionals

$730

-

$730

$326

44.7 %

Corporates

506

-

506

163

32.2 %

Tax, Audit & Accounting Professionals

412

-

412

220

53.4 %

"Big 3" Segments Combined(1)

1,648

-

1,648

709

43.0 %

Reuters

232

-

232

48

21.0 %

Eliminations/Rounding

(7)

-

(7)

-

n/a

Corporate costs

-

-

-

(70)

n/a

Consolidated totals

$1,873

-

$1,873

$687

36.7 %

Three Months ended September 30, 2025

Legal Professionals

$721

-

$721

$353

49.0 %

Corporates

489

-

489

177

36.3 %

Tax, Audit & Accounting Professionals

247

-

247

76

30.6 %

"Big 3" Segments Combined(1)

1,457

-

1,457

606

41.7 %

Reuters

207

-

207

42

19.9 %

Eliminations/Rounding

(6)

-

(6)

-

n/a

Corporate costs

-

-

-

(55)

n/a

Consolidated totals

$1,658

-

$1,658

$593

35.8 %

Three Months ended June 30, 2025

Legal Professionals

$704

-

$704

$339

48.1 %

Corporates

480

-

480

172

35.7 %

Tax, Audit & Accounting Professionals

274

10

284

110

38.9 %

"Big 3" Segments Combined(1)

1,458

10

1,468

621

42.3 %

Reuters

218

-

218

45

20.8 %

Eliminations/Rounding

(5)

-

(5)

-

n/a

Corporate costs

-

-

-

(61)

n/a

Consolidated totals

$1,671

$10

$1,681

$605

36.0 %

Three Months ended March 31, 2025

Legal Professionals

$688

-

$688

$336

48.7 %

Corporates

548

-

548

215

39.3 %

Tax, Audit & Accounting Professionals

358

10

368

208

56.6 %

"Big 3" Segments Combined(1)

1,594

10

1,604

759

47.3 %

Reuters

196

-

196

39

20.0 %

Eliminations/Rounding

(6)

-

(6)

-

n/a

Corporate costs

-

-

-

(66)

n/a

Consolidated totals

$1,784

$10

$1,794

$732

40.8 %

(1) To compute segment and consolidated adjusted EBITDA margin, we exclude fair value adjustments related to acquired deferred revenue from our IFRS revenues. The chart above reconciles IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue.

The Company reports its results in millions of U.S. dollars, but computes margins using whole-dollars to be more precise. As a result, adjusted EBITDA margins calculated from reported amounts may differ from those presented.

SOURCE Thomson Reuters