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Any proceeds from a sale of the exchange's tech stack, brand and IP go to FAF holders pro rata, with team tokens excluded from the distribution.

Flash Trade said on Friday it will wind down operations unless it finds a party to acquire the Solana perpetuals exchange, and that the decision was not driven by money.

"This decision is not calculated based on monetary reasons," the team wrote on X, citing "direction, shrinking market participants, and our own honest read on the crypto market as a whole and where it is heading."

The exchange said it is now pursuing a sale of its tech stack, brand and intellectual property, and that whatever the sale brings will be distributed to FAF token holders pro rata. The team "will not take a percentage," and team tokens will not participate in the distribution, according to the post.

Flash Trade has not set dates. "We haven't fixed the exact timeline yet, and we'd rather say that than publish dates we might have to move," the team wrote, committing only that withdrawals stay open and that it will give "clear notice well ahead of any change to them."

The operational specifics — when new positions are disabled, how open positions get settled, what liquidity providers need to do, and the dates for each — will be worked through on a call with token holders on Monday, with a write-up published immediately afterwards, the exchange said. The founders will hold an AMA on X on Monday, Aug. 10, at 16:00 UTC, or noon ET.

Explored Freezing AMMBefore settling on a sale, the team said it explored freezing its automated market maker with MetaDAO so that funds sitting in the AMM could be returned to holders pro rata. "That turned out not to be possible," according to the post.

Flash Trade also removed the three-month delay on token staking, so holders who want to unstake can do so immediately.

Alongside its read on the market, the team described a conflict over what its users wanted. "Ethically we are misaligned with the current direction of the crypto ecosystem," it wrote, adding that its own order flow showed "traders want to push further out on the risk curve" and that "we never found a way to serve that demand while sitting comfortably."

The exchange said it never raised outside capital, funding itself from the start, and has paid out roughly $520,000 in USDC of revenue share to FAF holders to date.

Perpetuals venues have been closing even as the sector's largest platforms grow. Dango said in July that it would wind down and halt trading on July 29.

Warren Buffett started giving away his Berkshire Hathaway (BRKA -0.75%) (BRKB -0.54%) shares 20 years ago, but the legendary investor is speeding up the process. Last month, Buffett announced his plans to dispose of his remaining shares between now and Dec. 31, 2034.

On the same day as the press release, Buffett converted $6 billion in Berkshire Class A shares into Class B shares and donated them to several private foundations.

Interestingly enough, for the first time in 20 years, Buffett gave nothing to the Gates Foundation, opting instead to give only to various affiliated foundations, including The Susan Thompson Buffett Foundation, as well as the private foundations run by each of his three children.

While there's rampant speculation about why Buffett skipped out on the Gates Foundation this time, there is one more pertinent question on the minds of Berkshire Hathaway stock investors: How will this accelerating transfer of Buffett's stake impact the company and its shares moving forward?

Image source: The Motley Fool.

Buffett and the big transfer Currently, the Oracle of Omaha holds a 13.2% economic interest in Berkshire Hathaway. This position is worth around $140 billion, implying that Buffett will give away an average of $17.5 billion each year for the next eight years.

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However, it's as if these shared, once transferred, will immediately hit the market. The Internal Revenue Service (IRS) may require private foundations to donate 5% of their overall assets annually.

While Securities and Exchange Commission (SEC) filings from The Gates Foundation suggest that it has sold off the bulk of the $47 billion in Berkshire shares it has received over the past 20 years , Buffett's family foundations may opt to hold on to their gifted positions.

Even if the family foundations liquidate their positions, this is likely to happen gradually. Furthermore, Berkshire's present and future share repurchase plans could mitigate the impact of some of these shares hitting the open market.

A shift, but not necessarily a dramatic one At the same time Buffett is initiating this great transfer, Berkshire Hathaway is seemingly shifting back to "buyback mode." According to published reports, the company has bought back between $5 billion and $11 billion worth of its own shares.

Berkshire has typically repurchased shares when it believes the company is trading below its intrinsic value. With nearly $400 billion in cash on hand, the company has plenty of capital it could return to investors. That said, it's not as if newly appointed CEO Greg Abel is looking to "dismantle" the Berkshire empire or even shrink it.

Although it still sits on a relatively large cash reserve, the company, under new leadership, has continued to make major deals and investments so far this year. Major transactions include Berkshire's $8.5 billion acquisition of Taylor Morrison and its $10 billion participation in Alphabet's $80 billion equity offering.

In short, while Berkshire's ownership may shift between now and 2034, it's not necessarily a dramatic one. Until subsequent developments suggest otherwise, don't expect Buffett's large transfer to materially affect the company's corporate governance, strategy, or price action.

Phillips 66 (PSX - Free Report) reported $52.04 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 55.3%. EPS of $9.41 for the same period compares to $2.38 a year ago.

The reported revenue represents a surprise of +43.88% over the Zacks Consensus Estimate of $36.17 billion. With the consensus EPS estimate being $7.68, the EPS surprise was +22.53%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Phillips 66 performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Refining Margins - Western/Pacific (Per Barrel): $29.65 compared to the $19.93 average estimate based on four analysts.Refining Margins - Worldwide (Per Barrel): $24.08 compared to the $23.15 average estimate based on four analysts.Refining Margins - Atlantic Basin/Europe (Per Barrel): $14.44 versus $19.77 estimated by four analysts on average.Refining Margins - Gulf Coast (Per Barrel): $24.25 versus $22.42 estimated by four analysts on average.Refining Margins - Central Corridor (Per Barrel): $29.56 versus the four-analyst average estimate of $26.35.Chemicals - CPChem Externally Marketed Sales Volumes: 5,006.00 Mlbs versus 5,432.52 Mlbs estimated by three analysts on average.Refining operations - Central Corridor - Capacity utilization (percent): 101% compared to the 95.1% average estimate based on three analysts.Refining operations - Central Corridor - Crude oil processed: 800 thousands of barrels of oil compared to the 754.31 thousands of barrels of oil average estimate based on three analysts.Refining operations - Central Corridor - Crude oil capacity: 793 thousands of barrels of oil versus 793 thousands of barrels of oil estimated by three analysts on average.Revenues and Other Income- Sales and other operating revenues: $51 billion versus $35.95 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +53.1% change.Revenues and Other Income- Equity in earnings of affiliates: $635 million versus $386.78 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +315% change.Total sales and other operating revenues- Renewable Fuels: $2.56 billion versus the two-analyst average estimate of $855.36 million. The reported number represents a year-over-year change of +58.7%.View all Key Company Metrics for Phillips 66 here>>>

Shares of Phillips 66 have returned +8.3% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Although outsize returns in the Dow Jones Industrial Average (^DJI +0.28%), S&P 500 (^GSPC +0.62%), and Nasdaq Composite (^IXIC +1.30%) have been the norm under President Donald Trump, bouts of extreme volatility have been as well.

In early April 2025, the president unveiled his long-touted "Liberation Day" tariff and trade policy, featuring sweeping global tariffs and higher reciprocal tariffs on dozens of countries deemed to have adverse trade imbalances with America. These tariffs were designed to protect American manufacturing jobs and make U.S. goods more price-competitive with those imported from overseas markets.

The Trump administration is issuing up to $166 billion in tariff refunds. Image source: Official White House Photo by Patrick B. Ruddy.

But in the days following this announcement, the Dow, S&P 500, and Nasdaq Composite endured what's now known as the "tariff tantrum." Equities plunged amid historic uncertainty.

By February 2026, the U.S. Supreme Court had invalidated the tariffs that Donald Trump had imposed under the International Emergency Economic Powers Act (IEEPA). This left the Trump administration on the hook to refund approximately $166 billion in IEEPA tariffs it had collected. On Aug. 4, total refunds issued surpassed $100 billion.

Some of the best-known, consumer-facing companies are already receiving the largest refund checks -- but this doesn't mean tariffs are now yesterday's news.

Massive Trump tariff refunds are being issued The biggest IEEPA refund that's already in hand went to Apple (AAPL +0.29%). The iPhone maker received $2.19 billion (over 2% of total refunds thus far) in its fiscal third quarter, which lifted its quarterly earnings per share by $0.11. Outgoing CEO Tim Cook has pledged to reinvest this refund into innovation and domestic manufacturing.

Companies expecting tariff refunds:

• Amazon: $600 million
• Apple: $2.2 billion
• Ford: $1.3 billion
• General Motors: $500 million
• UPS: $500 million
• Walmart: $2.4 billionhttps://t.co/A0RQBr812d

-- Frank Luntz (@FrankLuntz) August 3, 2026 Dual-industry leader Amazon (AMZN +0.81%) also received $600 million in IEEPA refunds during the second quarter. Unlike most companies receiving a refund, Amazon has stated that it plans to return some of this cash to its customers.

In terms of expectations, Walmart (WMT -0.20%) could receive the fattest tariff refund of them all at $2.4 billion. Other sizable refund expectations include automakers Ford Motor Company (F +1.38%) and General Motors (GM +0.74%), which anticipate refunds of $1.3 billion and $500 million, respectively, and wholesale club Costco Wholesale (COST -0.14%), which could receive around $2 billion. Costco has pledged to return this cash to its members if/when the government reimburses it.

Image source: Getty Images.

New tariffs mean new problems While these IEEPA refunds are providing one-time bottom-line boosts for some of America's consumer-facing powerhouses, the tariff story is far from over.

Last month, Trump and his administration used Section 301 of the Trade Act of 1974 to impose new sweeping global tariffs on more than 80 countries, ranging from 10% to 12.5%. Though the courts will ultimately determine the legality and staying power of these tariffs, their impact on consumer prices will be noticeable in economic data.

Across the 10 responses included from this month's ISM survey of service-industry purchasing managers (the people who buy things on behalf of businesses), the dominant theme is rising costs, driven by fuel and energy prices, tariffs, and AI-related demand.

No respondent reports... pic.twitter.com/ICCGnIF0Nj

-- Nick Timiraos (@NickTimiraos) June 3, 2026 For the past year, former Fed Chair Jerome Powell and current Fed Chair Kevin Warsh have noted that Trump's tariffs are lifting prices in the goods sector. Adding duties atop unfinished imported goods (e.g., steel) can increase U.S. production costs, which are then passed on to consumers.

Just because IEEPA tariff refunds are progressing, it doesn't mean tariffs are yesterday's news. If anything, we're likely to see the inflationary effects of tariffs ramp back up in the coming quarters, which is potentially worrisome news for a historically expensive stock market.

Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, and Walmart. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

MarketBeat Week in Review – 06/08 - 06/12Allstate NYSE: ALL reported higher second-quarter revenue, underwriting income and investment income as the insurer continued to expand policies across its auto, homeowners and protection-services businesses.

Total revenue rose 11.8% from a year earlier to $18.6 billion, while net premiums written increased 2.6%. Net income was $3.2 billion and adjusted net income was $2.3 billion, or $8.99 per share. For the first half of 2026, adjusted net income totaled $5.1 billion, or $19.65 per share.

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Allstate’s Comeback Is Turning Into a Profit MachineChair, President and CEO Tom Wilson said the company’s strategy centers on gaining property-liability market share, expanding its protection offerings and generating capital for growth investments, acquisitions, dividends and share repurchases. Allstate reported an adjusted net income return on equity of 44.2% over the past 12 months.

Underwriting Results Improve Allstate’s property-liability combined ratio improved by 4.5 points from the prior-year quarter to 86.6. The underlying combined ratio was 79.4, in line with the year-earlier period. Property-liability underwriting income increased nearly 57% to $2 billion.

MarketBeat Week in Review – 05/11 - 05/15President of Property-Liability Jess Merten said net premiums earned in the segment rose 4% to $14.9 billion, supported by growth in both auto and homeowners insurance.

Auto insurance recorded an 83.3 combined ratio, improving 2.7 points year over year. Homeowners insurance recorded a 94.6 combined ratio, improving 7.4 points. Lower catastrophe losses contributed 2.4 points to the overall combined-ratio improvement. Prior-year reserve re-estimates contributed 2 points, while a higher expense ratio offset 1 point of improvement. Merten said about half of the higher expense ratio reflected advertising, with most of the remainder tied to non-recurring legal expenses. He also said auto claim reserve releases totaled $1.5 billion year to date, with approximately half of bodily-injury changes relating to accident years 2023 and 2024.

Allstate’s annualized auto premium per policy was $1,486 in the second quarter, down slightly from the year-earlier period, while adjusted underlying loss and expense per policy was $1,337. The company implemented rate increases and decreases in 36 locations during the quarter, resulting in a net rate impact of zero.

On severity trends, Merten said Allstate does not provide a forward outlook, but noted that bodily-injury severity remained relatively elevated compared with physical-damage severity. He said future trends will depend on inflation affecting parts and labor as well as bodily-injury development.

Policy Growth and Distribution Expansion Total policies in force increased 3.8% to 215.9 million. Property-liability policies rose 2.6%, while Protection Services policies increased 4.1%. Issued applications increased 9.9%.

Chief Operating Officer Mario Rizzo said Allstate’s Transformative Growth initiative is supporting market-share gains through a mix of Allstate agents, independent agents and direct sales. Auto new-business volume rose to 2.3 million items in the quarter from 1.5 million three years earlier. Homeowners new business increased 46.8% to 411,000 policies.

Auto policy growth was 2.8% in the second quarter, while homeowners policy growth was 2.9%. Rizzo said the company spent $1.1 billion on advertising in the first half, citing returns on marketing investment and increased acquisition sophistication.

During the call, executives emphasized that growth is not based solely on price reductions. Wilson said the company is pursuing a “multifaceted approach” that includes customer affordability, new products, distribution expansion, marketing capabilities and claims effectiveness.

Management also discussed its approach to homeowners growth and catastrophe exposure. Wilson said Allstate is using pricing, analytics and individual-roof assessment capabilities to manage risk, while relying on a substantial catastrophe reinsurance program. He said the company does not require homeowners customers to also purchase auto insurance, although it seeks to offer customers multiple protection products.

Protection Services and Technology Investments Protection Services had 177 million policies in force and contributed $3.4 billion of top-line revenue, according to Rizzo. The segment generated more than $200 million of adjusted net income over the last 12 months.

The businesses include Allstate Protection Plans, Dealer Services, Arity, roadside assistance and Allstate Identity Protection. Rizzo said Allstate Protection Plans are distributed through more than 30 major retailers, including Walmart, Costco and The Home Depot. Allstate Identity Protection serves 3.4 million customers, while roadside assistance performs 1.75 million rescues annually.

Wilson also highlighted ALLIE, the company’s Large Language Intelligent Ecosystem, which is intended to use agentic artificial intelligence to improve customer service, reduce costs and support growth. He said Allstate has more than 250 analytical models using more than 40 petabytes of data and 1.5 billion CPU compute hours.

Wilson said the company’s existing orchestration layer, developed as part of Transformative Growth, should help accelerate ALLIE’s deployment by connecting underlying systems. He said Allstate does not use public large language models for its internal work and remains focused on cybersecurity and customer-data protection.

Investment Income, Capital and Share Repurchases Net investment income increased 33.8% to $1 billion in the quarter, reflecting a larger portfolio, longer bond duration, and higher performance-based income. President of Investments and Corporate Strategy and Interim CFO John Dugenske said trailing-12-month investment income has risen more than 57% since 2022 to nearly $3.8 billion.

The investment portfolio is 80% interest-bearing assets, with equity securities and performance-based investments providing growth-oriented exposure. Allstate increased public-equity holdings by $7.1 billion last year and lengthened bond-portfolio duration, actions that contributed to investment income and mark-to-market equity gains, management said.

Allstate returned $1.3 billion to shareholders during the quarter, including $1 billion in common-stock repurchases. The company had $2.6 billion remaining under its $4 billion repurchase authorization announced in February. Deployable capital at the holding company rose to $9.5 billion, or approximately $37 per common share outstanding.

Wilson also welcomed Chris Lown, who joined Allstate as chief financial officer during the week of the call. Dugenske will continue leading investments and corporate strategy after serving as interim CFO.

About Allstate (NYSE:ALL)Allstate Corporation is a publicly traded insurance company headquartered in Northbrook, Illinois, and is one of the largest personal lines property and casualty insurers in the United States. Founded in 1931 as a subsidiary of Sears, Roebuck and Co, Allstate has grown into a diversified insurer that serves millions of consumers and businesses through a mix of distribution channels and product offerings.

The company underwrites a broad range of insurance products, with primary emphasis on auto and homeowners coverage.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Rocket Lab Corporation (RKLB +9.46%) jumped 9.5% on Friday. The S&P 500 and the Nasdaq Composite were up 0.6% and 1.2%, respectively.

Shares of the rocket and satellite manufacturer were lifted by another successful Electron mission, a day after the company announced a new $397 million U.S. Space Force award.

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Another successful Electron launch Rocket Lab launched an Electron rocket -- its current workhorse -- from its Complex 1 site in New Zealand at 9:18 p.m. local time Thursday, carrying a single satellite for a Japanese operator of Earth-imaging satellites. The payload was placed in orbit to join the customer's existing imaging constellation.

That was the 92nd Electron flight since the rocket debuted. Rocket Lab has another 10 dedicated missions booked for the customer before 2030.

A $397 million Space Force contract steals the show The Electron launch was icing on the cake, however. The real story is the company's latest Space Force contract. Rocket Lab was selected for the Space-Based Airborne Moving Target Indicator (SB-AMTI) program and will build, launch, and run a constellation of flat satellites. It recieves $397 million for the project.

Image source: Getty Images.

Rocket Lab has already booked $816 million from the Space Development Agency for 18 missile-tracking satellites, plus a $266 million deal for suborbital missile-defense launches.

Is Rocket Lab stock a buy now? Rocket Lab is moving in the right direction financially and operationally. The big question is whether it can get its Nuetron program off the ground, the company's medium lift rocket that will allow it to compete more directly with SpaceX. The newest Space Force contract is contingent on Neutron being a success.

Meanwhile, the company is still losing money, and the stock is richly valued, to put it lightly. Still, there is upside if the company can hit its targets.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.

HONOLULU--(BUSINESS WIRE)--Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported net income for the second quarter of 2026 of $123 million, or $0.71 per share, compared to net income of $26 million, or $0.15 per share in the second quarter of 2025. The quarter’s results include the impact of remeasuring the remaining Maui wildfire settlement liability to present value after the settlement agreement was finalized in April, resulting in the remaining payment obligations becoming fixed under contract. Excluding Maui wildfire-related items and expenses taken in connection with the review of strategic options for Pacific Current, Core net income was $22 million, or $0.13 per share, compared to $35 million, or $0.20 per share in 2025.

“In June we filed our annual action plan update to our IGP, laying out immediate actions necessary to meet customers’ growing energy needs while improving reliability, resilience and affordability. These actions include using competitive procurements for all types of generation to attract the lowest pricing for customers, and on July 17 we submitted our IGP Request for Proposals to the PUC. We are seeking to procure nearly 1,650 gigawatt-hours of variable renewable energy, 465 megawatts of grid forming resources and 111 megawatts of firm generating capacity. The proposed procurement is one of our largest ever, and would help us build a portfolio that meets the requirements of reliability and lower carbon emissions at the least cost to customers,” said Scott Seu, HEI president and CEO.

“We’ve also continued progressing our Wildfire Mitigation Plan implementation, with the PUC fully approving our Wildfire Mitigation Plan costs, which we plan to securitize as we prioritize customer affordability. Our positive credit ratings trajectory has continued as another rating agency upgraded us in recent months, acknowledging the progress we’ve made reducing wildfire risk in our service territories. Stronger credit ratings ultimately lower our cost of borrowing, which directly improves customer affordability. Moving forward, we’ll continue to focus on making the investments outlined in our Wildfire Mitigation Plan, while operating efficiently and maintaining financial strength,” said Seu.

HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS

Hawaiian Electric’s net income for the second quarter of 2026 was $138 million compared to net income of $39 million in the second quarter of 2025, with the increase primarily driven by the following pre-tax variances (among others):

$154 million from remeasurement of the remaining settlement liability to present value (as the remaining settlement liability was adjusted from $1.44 billion to $1.30 billion and recognized on the income statement as a reduction to expense of $154 million); $9 million of insurance recoveries recognized as an adjustment to the tort-related legal claims; $8 million in higher revenues, primarily from the annual revenue adjustment mechanism; and $1 million in higher interest income. These items were partially offset by (among others):

$23 million in higher interest expense, which includes $18 million of accretion expense related to remeasuring the remaining settlement liability to present value; $9 million in higher O&M (driven by higher generation, transmission and distribution costs, higher labor and employee benefits costs and higher other general and administrative costs partially offset by lower WMP expenses); and $2 million in higher depreciation expense. Hawaiian Electric’s Core net income for the second quarter was $33 million compared to $42 million in 2025, with the decrease primarily driven by higher interest expense and higher O&M.

UTILITY OUTLOOK AND GUIDANCE

Hawaiian Electric continues to expect 2026 adjusted O&M excluding pension3, to significantly outpace inflation as we progress through a transitional year ahead of a 2027 rate rebasing. This is due to the following factors: higher insurance premiums, primarily reflecting the deferral treatment of wildfire insurance premiums prior to 2026; storm response expenses related to severe weather in February and March; higher vegetation management expenses; higher overhauls and station maintenance expenses as the utility prioritizes reliability; higher IT-related costs to improve cyber defenses; and higher labor and benefits costs. In addition, the maximum penalty of ~$3.7 million (pre-tax) is expected under the Fuel Cost Risk Sharing mechanism, which is recorded as a reduction of fuel revenue. Additionally, the remeasurement of the remaining wildfire settlement liability in the second quarter reduced the liability to its present value and resulted in a non-cash benefit in the quarter. This benefit will be offset over time by future interest accretion (expense) as the liability increases to the full settlement amount when payments become due. Hawaiian Electric’s proposed rate rebasing and proposed modifications to the PBR framework are intended to address many of the higher O&M costs, such as increased insurance premiums. Additionally, the Company is in the process of reprioritizing work to mitigate expense headwinds, while managing expenses to operate as efficiently as possible.

HOLDING AND OTHER COMPANIES

The holding and other companies’ net loss was $15 million in the second quarter of 2026 compared to $13 million in the second quarter of 2025. The higher net loss for the quarter was primarily driven by lower interest income due to the lower cash balance following the first wildfire settlement payment made in April, partially offset by a lower loss related to the ongoing review of strategic options for Pacific Current. Core net loss for the quarter was $10 million compared to $7 million in the same quarter of 2025, primarily due to lower interest income.

EARNINGS RELEASE, WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS

HEI will conduct a webcast and conference call to review its second quarter 2026 consolidated financial results today at 10:30 a.m. Hawaii time (4:30 p.m. Eastern).

To listen to the conference call, dial 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) and enter passcode 2393042. Parties may also access presentation materials (which include reconciliation of non-GAAP measures) and/or listen to the conference call by visiting the conference call link on HEI’s website at www.hei.com under “Investor Relations,” sub-heading “News and Events — Events and Presentations.”

A replay will be available online and via phone. The online replay will be available on HEI’s website about two hours after the event. The audio replay will also be available about two hours after the event through August 14, 2026. To access the audio replay, dial 1-800-770-2030 (U.S.) or 1-647-362-9199 (international) and enter passcode 2393042.

HEI and Hawaiian Electric Company, Inc. (Hawaiian Electric) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI’s website, in addition to following HEI’s and Hawaiian Electric’s press releases, HEI’s and Hawaiian Electric’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the “Investor Relations” section of the website. The information on HEI’s website is not incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings unless, and except to the extent, specifically incorporated by reference.

Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at https://hpuc.my.site.com/cdms/s/ to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI’s and Hawaiian Electric’s SEC filings.

NON-GAAP MEASURES

Measures described as “Core” are non-GAAP measures which exclude Maui wildfire-related items, and expenses taken in connection with HEI’s ongoing review of strategic options for Pacific Current. “Adjusted O&M excluding pension” is a non-GAAP measure which excludes pension nonservice retirement benefits and net income neutral items (consisting of O&M covered by surcharges or covered by third parties). See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and the related GAAP reconciliations at the end of this release.

FORWARD LOOKING STATEMENTS

This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.

Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2025 and HEI’s other SEC periodic and current reports and other filings that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ABOUT HEI

HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy, and modernize and harden the grid to ensure public safety, reliability and resilience. For more information, visit www.hei.com.

  Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME DATA

(Unaudited)

  Three months ended June 30

Six months ended June 30

(in thousands, except per share amounts)

2026

2025

2026

2025

Revenues

Electric utility

$

936,864

$

742,482

$

1,680,904

$

1,480,848

Other

2,839

3,910

5,246

9,614

Total revenues

939,703

746,392

1,686,150

1,490,462

Expenses

Electric utility (includes $154 million benefit for the tort settlement remeasurement)

718,300

677,938

1,399,807

1,340,367

Other

17,189

14,707

28,752

33,928

Total expenses

735,489

692,645

1,428,559

1,374,295

Operating income (loss)

Electric utility

218,564

64,544

281,097

140,481

Other

(14,350

)

(10,797

)

(23,506

)

(24,314

)

Total operating income

204,214

53,747

257,591

116,167

Retirement defined benefits credit—other than service costs

879

919

1,758

1,836

Interest expense, net

(48,383

)

(27,256

)

(79,511

)

(61,468

)

Allowance for borrowed funds used during construction

1,997

1,462

3,702

2,879

Allowance for equity funds used during construction

4,387

3,702

8,151

7,287

Interest and dividend income

5,284

7,579

15,279

20,202

Loss on sale of a subsidiary and impairment loss on assets held for sale

(3,716

)

(178

)

(3,716

)

(13,389

)

Income before income taxes

164,662

39,975

203,254

73,514

Income tax expense

41,462

13,417

49,604

19,812

Net income

123,200

26,558

153,650

53,702

Preferred stock dividends of subsidiaries

—

473

—

946

Net income for common stock

$

123,200

$

26,085

$

153,650

$

52,756

Basic earnings per common share

$

0.71

$

0.15

$

0.89

$

0.31

Diluted earnings per common share

$

0.71

$

0.15

$

0.89

$

0.31

Weighted-average number of common shares outstanding

172,637

172,496

172,632

172,487

Weighted-average shares assuming dilution

173,222

172,655

173,353

172,832

Income (loss) for common stock by segment

Electric utility

$

137,858

$

39,150

$

173,201

$

86,966

Other

(14,658

)

(13,065

)

(19,551

)

(34,210

)

Income for common stock

$

123,200

$

26,085

$

153,650

$

52,756

Comprehensive income attributable to HEI

$

123,125

$

25,779

$

153,501

$

51,990

Return on average common equity (%) (twelve months ended)1

13.6

NM

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME DATA

(Unaudited)

  Three months ended June 30

Six months ended June 30

($ in thousands, except per barrel amounts)

2026

2025

2026

2025

Revenues

$

936,864

$

742,482

$

1,680,904

$

1,480,848

Expenses

Fuel oil

336,615

210,587

573,528

449,308

Purchased power

223,559

174,963

368,833

321,680

Other operation and maintenance

166,743

158,217

328,960

301,325

Wildfire tort-related claims

(162,383

)

—

(162,383

)

—

Depreciation

66,447

63,974

132,893

127,993

Taxes, other than income taxes

87,319

70,197

157,976

140,061

Total expenses

718,300

677,938

1,399,807

1,340,367

Operating income

218,564

64,544

281,097

140,481

Allowance for equity funds used during construction

4,387

3,702

8,151

7,287

Retirement defined benefits credit—other than service costs

1,049

1,052

2,099

2,103

Interest expense and other charges, net

(45,351

)

(21,706

)

(73,227

)

(44,158

)

Allowance for borrowed funds used during construction

1,997

1,462

3,702

2,879

Interest income

2,713

1,215

6,581

3,196

Income before income taxes

183,359

50,269

228,403

111,788

Income tax expense

45,501

10,620

55,202

23,824

Net income

137,858

39,649

173,201

87,964

Preferred stock dividends of subsidiaries

—

229

—

458

Net income attributable to Hawaiian Electric

137,858

39,420

173,201

87,506

Preferred stock dividends of Hawaiian Electric

—

270

—

540

Net income for common stock

$

137,858

$

39,150

$

173,201

$

86,966

Comprehensive income attributable to Hawaiian Electric

$

137,811

$

39,103

$

173,107

$

86,872

OTHER ELECTRIC UTILITY INFORMATION

Kilowatthour sales (millions)

Hawaiian Electric

1,496

1,509

2,953

2,962

Hawaii Electric Light

260

257

518

512

Maui Electric

259

266

516

523

2,015

2,032

3,987

3,997

Average fuel oil cost per barrel

$

145.67

$

100.40

$

119.71

$

102.56

Return on average common equity (%) (twelve months ended)1

15.0

3.7

Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures

HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP Core earnings.

The reconciling adjustments from GAAP earnings to Core earnings are limited to the items related to the Maui wildfires and costs related to HEI’s ongoing review of strategic options for Pacific Current. Management does not consider these items to be representative of the company’s fundamental Core earnings.

  Reconciliation of GAAP1 to non-GAAP Measures

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related items

Pretax expenses:

Legal expenses

$

3,325

$

5,888

$

5,232

$

14,738

Outside services expense

—

11

—

135

Other expense

1,270

5,859

1,378

11,787

Interest expense

—

870

—

2,901

Pretax expenses

4,595

12,628

6,610

29,561

Insurance recoveries2

(7,842

)

2,418

(9,174

)

(4,304

)

Settlement remeasurement3

(153,870

)

—

(153,870

)

—

Accretion expense4

17,714

—

17,714

—

Deferral of cost

—

(9,889

)

—

(15,572

)

Total Maui windstorm and wildfires related items, net

(139,403

)

5,157

(138,720

)

9,685

Pretax loss on sale of a subsidiary and asset impairment

3,716

178

3,716

13,389

Income tax expense (benefit)5

34,940

3,936

34,764

(632

)

After-tax adjustments

$

(100,747

)

$

9,271

$

(100,240

)

$

22,442

Reconciliation of GAAP to non-GAAP Measures (continued)

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

HEI Consolidated

GAAP1 net income (as reported)

$

123,200

$

26,085

$

153,650

$

52,756

Excluding special items related to the Maui windstorm and wildfires (after tax)2:

Legal expenses

2,469

4,372

3,885

10,943

Outside services expense

—

8

—

100

Other expense

943

4,350

1,023

8,752

Interest expense

—

646

—

2,154

After tax expenses

3,412

9,376

4,908

21,949

Insurance recoveries3

(5,823

)

1,795

(6,812

)

(3,196

)

Settlement remeasurement4

(114,248

)

—

(114,248

)

—

Accretion expense5

13,153

—

13,153

—

Deferral of cost

—

(7,342

)

—

(11,562

)

Total Maui windstorm and wildfires related items, net (after tax)

(103,506

)

3,829

(102,999

)

7,191

Loss on sale of a subsidiary and asset impairment (after tax)2

2,759

5,442

2,759

15,251

Non-GAAP (Core) net income

$

22,453

$

35,356

$

53,410

$

75,198

GAAP Diluted earnings per share (as reported)

$

0.71

$

0.15

$

0.89

$

0.31

Non-GAAP (Core) Diluted earnings per share

$

0.13

$

0.20

$

0.31

$

0.44

Reconciliation of GAAP to non-GAAP Measures (continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related items

Pretax expenses:

Legal expenses

$

1,109

$

4,304

$

2,564

$

8,153

Other expense

1,116

5,792

1,116

11,487

Interest expense

—

660

—

2,412

Pretax expenses

2,225

10,756

3,680

22,052

Insurance recoveries1,2

(7,870

)

3,620

(8,831

)

556

Settlement remeasurement3

(153,870

)

—

(153,870

)

—

Accretion expense4

17,714

—

17,714

—

Deferral of cost5

—

(9,889

)

—

(15,572

)

Total Maui windstorm and wildfires related items, net

(141,801

)

4,487

(141,307

)

7,036

Income tax expense (benefits)6

36,514

(1,156

)

36,387

(1,812

)

After-tax adjustments

$

(105,287

)

$

3,331

$

(104,920

)

$

5,224

Hawaiian Electric consolidated net income

GAAP7 net income (as reported)

$

137,858

$

39,150

$

173,201

$

86,966

Excluding special items related to the Maui windstorm and wildfires (after tax)6:

Legal expenses

824

3,195

1,904

6,053

Other expense

828

4,300

828

8,529

Interest expense

—

490

—

1,791

After tax expenses

1,652

7,985

2,732

16,373

Insurance recoveries1,2

(5,844

)

2,688

(6,557

)

413

Settlement remeasurement3

(114,248

)

—

(114,248

)

—

Accretion expense4

13,153

—

13,153

—

Deferral of cost5

—

(7,342

)

—

(11,562

)

Total Maui windstorm and wildfires related items, net (after tax)

(105,287

)

3,331

(104,920

)

5,224

Non-GAAP (Core) net income

$

32,571

$

42,481

$

68,281

$

92,190

Twelve months ended June 30

2026

2025

Ratios (%)

Based on GAAP - Return on average equity8

15.0

3.7

Based on Non-GAAP (core) - Return on average equity8,9

5.7

7.2

Reconciliation of GAAP to non-GAAP Measures (continued)

Holding and Other Companies

Unaudited

  Three months ended June 30

Six months ended June 30

(in thousands)

2026

2025

2026

2025

Maui windstorm and wildfires related costs

Pretax expenses:

Legal expenses

$

2,216

$

1,584

$

2,668

$

6,585

Outside services expense

—

11

—

135

Other expense

154

67

262

300

Interest expense

—

210

—

489

Pretax expenses

2,370

1,872

2,930

7,509

Insurance recoveries

28

(1,202

)

(343

)

(4,860

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries

2,398

670

2,587

2,649

Pretax loss on sale of a subsidiary and asset impairment

3,716

178

3,716

13,389

Income tax expense (benefits)1

(1,574

)

5,092

(1,623

)

1,180

After-tax adjustments

$

4,540

$

5,940

$

4,680

$

17,218

Holding and Other Companies net loss

GAAP2 net loss (as reported)

$

(14,658

)

$

(13,065

)

$

(19,551

)

$

(34,210

)

Excluding special items related to the Maui windstorm and wildfires (after tax)1:

Legal expenses

1,646

1,177

1,981

4,890

Outside services expense

—

8

—

100

Other expense

115

50

195

223

Interest expense

—

156

—

363

Maui windstorm and wildfires related expenses (after tax)

1,761

1,391

2,176

5,576

Insurance recoveries

20

(893

)

(255

)

(3,609

)

Total Maui windstorm and wildfires related expenses, net of insurance recoveries (after tax)

1,781

498

1,921

1,967

Loss on sale of a subsidiary and asset impairment

2,759

5,442

2,759

15,251

Non-GAAP (Core) net loss

$

(10,118

)

$

(7,125

)

$

(14,871

)

$

(16,992

)

More News From Hawaiian Electric Industries, Inc.

Shares of QuantumScape (QS +9.95%) fell 31% in July, according to data from S&P Global Market Intelligence. The battery technology outfit had a rough month after reporting its Q2 earnings, amid a decline in stock prices across high-risk areas of the stock market.

After a brief rise at the start of August, QuantumScape now trades at $6 per share and is down 95% from its highs. Here's why it was falling again in July.

Today's Change

(

9.95

%) $

0.55

Current Price

$

6.08

Breakthroughs in battery technology After going public in 2020, QuantumScape stock rose during the COVID-19 electric vehicle (EV) bubble, before slowly falling back to earth. The company has been working for years on a solid-state battery technology for EVs, which promises better performance and less fire safety risks compared to current liquid lithium-ion systems.

Still, in 2026, it had failed to make enough progress with its batteries to reach full production. The company has never generated a lick of revenue and is burning hundreds of millions of dollars in free cash flow each year.

Now, the company has begun to give up its hopes of manufacturing batteries at scale, instead licensing these systems to other manufacturers, such as automakers. This did not go over well with Wall Street and is a reason the stock fell in July.

In July, QuantumScape reported second-quarter earnings, but they are not very relevant to the business today, as it has no products to sell. Investors need to look closely at the company's product development to see whether it is meeting its timeline for implementing this technology in EVs at scale. Right now, management believes it will be ready by 2029.

Image source: Getty Images.

Should you buy the dip on QuantumScape stock? QuantumScape has $860 million in cash on its balance sheet. It is currently burning just under $300 million in cash per year, giving it around three years of product development before it needs to raise more money.

The stock now trades at a market cap of $3.7 billion, down significantly from previous highs but still at a premium for a company that has never generated revenue. It has proven much more difficult to develop these battery innovations than previously assumed, and Wall Street is beginning to get impatient with the stock.

QuantumScape believes it is on a better track by not manufacturing its own batteries and by partnering with companies across the automotive sector, like Honda, but it still needs a working battery if this business is going to have a whiff of viability. Don't buy the dip on QuantumScape stock.

Key Takeaways Cipher Digital delivered initial Black Pearl HPC capacity two months early, with rent starting in August.CIFR's portfolio totals about 5.3 GW across 11 sites, including a 4.4-GW future-development pipeline.CIFR priced $810 million of Stingray secured notes at 6%, with the offering about eight times oversubscribed. Cipher Digital Inc. (CIFR - Free Report) used its second-quarter 2026 earnings call to emphasize execution on its shift toward contracted hyperscale data centers. Black Pearl provided the clearest proof point, with initial HPC capacity delivered two months early and rent beginning in August.

Cipher reported a loss of 65 cents per share, wider than the Zacks Consensus Estimate of a loss of 21 cents. Revenues of $24.8 million also missed the Zacks Consensus Estimate of $29.3 million. During the earnings call, management focused on Black Pearl execution, leasing demand and project financing. 

Cipher Accelerates Black Pearl DeliveryCEO Tyler Page said Cipher accelerated initial Black Pearl capacity at the tenant's request, demonstrating that the company can compress construction schedules when the economics and tenant coordination support it.

Page clarified during the Jefferies Q&A that the early handoff applies to part of the project. The remaining Black Pearl delivery deadlines remain unchanged.

At Barber Lake, Page said the approximately 168-critical-IT-megawatt first phase remains on track, with rental payments expected to begin in October. Stingray remains targeted for delivery in the first half of 2027.

CIFR Expands Its Texas PipelinePage said Cipher's portfolio now totals about 5.3 GW across 11 sites, including a 4.4-GW future-development pipeline.

The company added an option on Apollo, a site near San Antonio with up to 900 MW, and submitted a planned 200-MW Stingray expansion as a studied load in ERCOT's Batch Zero process.

Page also said the three executed data-center campus leases are expected to generate about $793 million of average annualized net operating income from October 2026 through September 2036.

Cipher Sees Its Strongest Demand BackdropA Chardan analyst asked about tenant demand and partner selection. Page described the demand environment as the strongest Cipher has seen, with higher rents, longer lease terms and more triple-net structures.

A Macquarie analyst asked about Reveille and Ulysses. Page said multiple parties are interested in both sites, while Cipher is prioritizing counterparty quality, lease terms and risk-adjusted returns over signing the first available deal.

In response to H.C. Wainwright, Page said Odessa, Reveille and Ulysses represent 477 MW that have cleared the major milestones needed to support lease execution.

CIFR Extends Its Project Financing ModelCFO Greg Mumford said the $810 million Stingray secured-notes offering priced at a 6% coupon and was about eight times oversubscribed. The financing funds the project through substantial completion.

Mumford said Cipher ended June with $870 million of unrestricted liquidity, excluding undrawn revolver availability, and no cash borrowings on its revolver.

During the Jefferies Q&A, Mumford added that near-term sites can be handled without an equity raise. He also said a future lease spanning several hundred megawatts or more could create an equity requirement.

Cipher Flags ERCOT Timing and Cost PressureA Morgan Stanley analyst asked about Texas interconnection uncertainty following the governor's letter. Page said the expected near-term Batch Zero decision would be delayed and declined to provide a new timing forecast.

Page said Cipher had completed the required attestations and water surveys and expects its sites to remain well positioned. He added that delays increase the value of near-term megawatts outside the batch process and of self-generation options.

Rosenblatt and Needham analysts pressed on procurement and construction costs. Page said labor and equipment inflation are pushing future budgets higher, while current builds are running at contingency levels, and some contract structures cap Cipher's exposure.

CIFR Stays Focused on ExecutionPage said Cipher does not anticipate additional capital investment in bitcoin mining as it prioritizes HPC. The operating focus is on delivering current campuses and converting development sites into leases.

Mumford's financing commentary reinforced that strategy, with project-level debt intended to fund contracted builds while preserving parent-company liquidity for the development pipeline.

Cipher's Zacks Signals Remain MixedCIFR carries a Zacks Rank #3 (Hold). Under the Style Score framework, the strongest historical combinations pair Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks with A or B Style Scores, making the Hold rank a more neutral starting point. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

The Momentum Score of A indicates favorable momentum characteristics, while the Growth Score of C is middle-tier and the Value Score of F and VGM Score of D are weaker. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

Key Takeaways JOBY posted Q2 revenues of $38.6M, beating estimates, while its loss widened to 25 cents a share. Blade contributed $36.2M in Q2, helping Joby Aviation raise its 2026 revenue outlook to $115M-$125M. Joby Aviation targets first eIPP flights in Texas in September and its first passengers later in 2026. Joby Aviation, Inc. (JOBY - Free Report) reported a second-quarter 2026 loss of 25 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. In the year-ago quarter, JOBY reported a loss of 41 cents.

However, the results had a positive impact on the market, as the stock gained 5.5% since its earnings release on Aug. 5.

Quarterly revenues were $38.6 million, surpassing the Zacks Consensus Estimate of $29 million. Revenues increased from $15,000 in the prior-year period, with Blade contributing $36.2 million in the reported quarter amid seasonal demand and strong passenger activity.

In the June-end quarter, total operating expenses increased 78.4% year over year to $299.52 million. Research and development expenses rose 42.7% to $194.66 million, while selling, general and administrative expenses climbed 143.2% to $76.56 million as Joby invested in certification, manufacturing and commercial readiness and supported Blade’s growth.

Adjusted EBITDA in second-quarter 2026 was a loss of approximately $197 million compared with a loss of about $179 million in the first quarter. Management attributed the sequential change to the quarter's revenues and expense dynamics.

JOBY exited the second quarter with cash and cash equivalents of $629.86 million and total cash, cash equivalents and short-term investments of $2.26 billion. As of June 30, 2026, long-term debt totaled $701.87 million.

JOBY's GuidanceThe company raised its full-year 2026 revenue outlook to $115-$125 million from $105-$115 million, citing Blade's continued strength. For the second half of 2026, Joby expects to use between $385 million and $415 million of cash, cash equivalents and short-term investments.

On the operating front, Joby expects its first flights under the White House-backed eIPP program in Texas in September and aims to carry its first passengers in 2026. The company said five aircraft are flying and another 12 are in production, while it recorded its strongest quarterly progress yet in the fifth and final stage of FAA type certification.

Currently, JOBY has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.

Key Takeaways SoundHound's Q2 revenues jumped 45% to a record $61.9M as enterprise demand for OASYS strengthened.SOUN raised its 2026 revenue outlook to $230-$260M, lifting the lower end by $5M after first-half gains.OASYS cut development timelines, while GAAP gross margin rose 610 basis points to 45.1% in Q2. SoundHound AI, Inc. (SOUN - Free Report) delivered a record second quarter as enterprise demand for OASYS helped lift revenues and management raised the floor of its 2026 outlook. The result strengthens the case that the platform is becoming a more meaningful growth driver.

Investors now have a tougher test to watch. Faster deal conversion and improving margins need to persist while SoundHound absorbs acquisition risk and works toward better cash generation.

SoundHound's Record Q2 Shows OASYS MomentumSecond-quarter revenues rose 45% year over year to a record $61.9 million, topping the Zacks Consensus Estimate of $52.49 million by 17.9%. The adjusted loss narrowed to 2 cents per share from 3 cents a year earlier and beat the consensus estimate of 3 cents.
 

Management attributed the top-line growth to major enterprise AI deals linked to OASYS. The self-learning, orchestrated platform lets customers build and deploy conversational agents across phones, chat, kiosks, smart devices, drive-thrus, televisions and vehicles.

SOUN's Guidance Raise Extends the Growth StorySoundHound raised its 2026 revenue outlook to $230-$260 million from $225-$260 million, lifting the lower end by $5 million. The revision followed its first-half performance and continued demand for OASYS and the company's broader voice and agentic AI portfolio.

The Zacks Consensus Estimate for 2026 sales is $233 million, up 37.9% from 2025. That figure sits near the lower end of management's new range, while the unchanged $260 million ceiling leaves the raised floor as the principal guidance change.

OASYS Helps SoundHound Shorten Deal TimelinesManagement said work that previously took months can now be built in minutes using OASYS. One eight-figure commitment moved from demonstration to contract in less than 90 days. OASYS also helped SoundHound convert pilots and customer evaluations more quickly.

Cerence Inc. (CRNC - Free Report) , a listed Zacks industry peer, develops conversational AI for automotive use cases. Five9, Inc. (FIVN - Free Report) , another listed peer, offers agentic and voice AI for contact centers. Those businesses frame the competitive pressure SoundHound faces across automotive and enterprise customer-service deployments.

SOUN's Margin Improvement Adds Quality to the BeatGAAP gross margin expanded 610 basis points year over year to 45.1% from 39%, while GAAP gross profit rose 68% to $27.9 million. Adjusted EBITDA loss narrowed 33% to $9.6 million from $14.3 million.

Non-GAAP gross margin was unchanged at 58.4%, indicating stable underlying gross profitability after the company's adjustments. Losses remain material, however. GAAP net loss totaled $42.8 million and first-half operating cash outflow widened to $60 million from $43.7 million a year earlier.

SoundHound's Outlook Excludes LivePerson UpsideThe new 2026 outlook does not contemplate SoundHound's pending acquisition of LivePerson, Inc. (LPSN - Free Report) . SoundHound expects the transaction to close before the end of 2026 and plans to update guidance after completion.

That structure leaves any post-close contribution outside the current range, but the transaction also adds execution risk. SoundHound must integrate technologies, engineering teams and enterprise platforms while continuing to convert OASYS demand into scaled deployments.

SoundHound's Scores Temper the Post-Earnings SetupThe second-quarter report strengthens the operating case for OASYS, but the next phase depends on whether faster deployments can support durable margin improvement and better cash generation while acquisition risks remain in focus.

SOUN currently carries a Zacks Rank #3 (Hold), a VGM Score of F, Value Score of F, Growth Score of D and Momentum Score of F. The Zacks Rank reflects earnings-estimate revisions over a one- to three-month horizon, while the Style Scores assess value, growth and momentum characteristics. The weaker grades temper the setup despite the stronger quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova (GEV -1.00%), the former energy division of General Electric (GE -1.19%) that was spun off as a stand-alone company in 2024, has soared since its market debut. Its stock opened at $143 on the first day, and it's trading at around $994 as of this writing.

The rapid growth of the power-hungry cloud, artificial intelligence (AI), and data center markets generated strong tailwinds for GE Vernova's business, and its backlog swelled 37% year over year to $176.3 billion in the second quarter of 2026. Yet over the past month, its stock dipped by about 5% while the S&P 500 rose by 3%. Let's see why it lost momentum and whether that pullback represents a good buying opportunity for long-term investors.

Image source: Getty Images.

How fast is GE Vernova growing? GE Vernova operates three main segments: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). The Power segment develops gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants, and provides services for nuclear power plants. The Electrifification segment sells transformers, breakers, substations, high-voltage direct current systems, along with automation, optimization, and protection services for electrical grids. The Wind segment primarily sells onshore and offshore wind turbines.

GE Vernova's total orders grew 34% organically in 2025, accelerating from its 7% growth in 2024. Its Power and Electrification orders surged 51% and 23%, respectively, as more utilities expanded their infrastructure to support the growing cloud and AI markets. That robust growth offset the slower growth of its Wind segment, which grappled with supply chain issues.

Today's Change

(

-1.00

%) $

-9.98

Current Price

$

990.32

In the first half of 2026, its total orders grew 89% year over year. Its Power and Electrification orders rose 99% and 131%, respectively, easily offsetting its 11% decline in Wind orders. For the full year, it expects its revenue to rise 19% to 22%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to expand from 8.4% to 12%-14%.

Why did GE Vernova's stock pull back? GE Vernova's business is firing on all cylinders, but a few issues weighed down its stock after its second-quarter report on July 22. First, its adjusted EBITDA and EPS missed Wall Street's expectations as it ramped up spending to increase its capacity and recognized additional losses from the Wind division's offshore and onshore segments. Second, GE Vernova was already priced for perfection. Therefore, any perceived imperfections would drive its stock lower.

With an enterprise value of $255 billion, GE Vernova still isn't cheap at 40 times this year's adjusted EBITDA. However, I believe the AI-driven growth potential of its Power and Electrification businesses justifies that higher valuation and makes it a great buy today.

XRP holders can now access Ripple USD (RLUSD) liquidity on Ethereum without selling their XRP. 

The option became available after Flare integrated FXRP as collateral in Sentora’s institutional RLUSD vault on Morpho.

The launch creates an isolated FXRP/RLUSD lending market on Morpho Blue. Users can mint FXRP on Flare, bridge it to Ethereum, and borrow RLUSD against their holdings in a permissionless and non-custodial way.

FXRP Becomes First XRP Collateral Asset in Institutional Ethereum Vault According to Flare, FXRP is the first XRP representation approved as collateral in an institutionally curated lending vault on Ethereum mainnet.

The integration gives XRP holders access to Sentora’s RLUSD Main vault, which currently holds around $280 million in deposited RLUSD. It is now the largest institutionally curated RLUSD vault on Ethereum.

The new market allows users to keep exposure to XRP’s price while unlocking liquidity through RLUSD loans. Borrowers retain control of their collateral, with no custodial intermediary or whitelist required.

To use the service initially, users must mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum, deposit it into the FXRP/RLUSD market, and borrow RLUSD within the market’s loan-to-value (LTV) limit.

Flare said a simpler process is in development through Flare Smart Accounts. Once launched, it will allow users to access the service directly from the XRP Ledger.

Expanding XRP’s Role in DeFi Flare said the integration addresses one of the biggest challenges facing XRP decentralized finance (DeFi): access to deep stablecoin liquidity.

The company noted that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency.

Flare highlighted the network’s growth after the launch of USDT0 as an example. Following the launch, total value locked (TVL) increased from about $37 million to more than $120 million within two weeks.

By connecting FXRP with institutional RLUSD liquidity, Flare expects borrowing demand on Ethereum to create additional demand for FXRP minted through the FAssets protocol.

Institutional Review Clears FXRP as Collateral Before approving FXRP as collateral, Sentora conducted a risk assessment that examined the asset’s behavior, oracle reliability, and available liquidity for liquidations and withdrawals.

Flare CEO Hugo Philion said the integration marks an important step for XRP’s utility beyond payments.

“XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure. FXRP closed part of it by making XRP programmable. This closes another part. XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet.”

Jesus Rodriguez, Co-Founder and CTO-CPO of Sentora, said enabling FXRP as collateral expands XRP’s role in decentralized credit markets. In his words:

“By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”

More XRP DeFi Integrations Ahead Meanwhile, Flare said the current launch is the first step toward broader XRP-backed lending options. Future updates include direct FXRP minting from the XRP Ledger to Ethereum, removing the need for a separate bridging process.

Flare Smart Accounts are also expected to allow XRP holders to borrow RLUSD directly from the XRP Ledger without using Ethereum interfaces.

The company added that Sentora’s approval could encourage other Morpho vault curators to adopt FXRP as collateral. This could increase the amount of stablecoin liquidity available to XRP holders across decentralized finance.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Key Takeaways AMD shares fell after Q2 results as investors weighed weak Client and Gaming trends and delayed AI ramps.Data Center revenues jumped 107% as EPYC demand surged, with server growth expected above 80% in H2 2026.Helios and MI450 deployments, plus demand from major AI customers, are expected to ramp into 2027. Advanced Micro Devices (AMD - Free Report) shares dropped roughly 6% following the release of second-quarter 2026 results. Shares dropped close to 8% in Wednesday’s session following the results on Tuesday and were up 1.5% at the end of the session on Thursday. Despite strong revenues (up 50.1% year over year) and earnings (246% year over year), the overall results failed to excite investors as they focus on near-term risks that include weak Client and Gaming business and late fourth-quarter and 2027 revenue ramp from AMD’s biggest AI catalysts, Helios rack-scale systems and MI450 deployments. Stiff competition from the likes of NVIDIA (NVDA - Free Report) , Broadcom (AVGO - Free Report) and Intel (INTC - Free Report) , along with a lofty valuation, also spooked the investors.

Does the dip offer a buying opportunity? Let’s dig deep to find out.

Client and Gaming Outlook Remains a DragAMD expects a softer PC market in the second half of 2026 as higher memory and component costs pressure demand. The third-quarter 2026 guidance calls for a modest decline in Client & Gaming revenues on a sequential basis, with gaming expected to see another strong double-digit decline, offset only partially by client growth.

Gaming revenues already declined 31% year over year in the second quarter of 2026 because of lower semicustom console sales and weaker discrete GPU demand. For growth-oriented investors, the non-AI businesses remain a headwind despite AI strength.

AMD Suffers From Stiff CompetitionAMD continues to face stiff competition from NVIDIA, Broadcom and a resurgent Intel. AMD continues to face intense competition in AI accelerators and server processors from NVIDIA in AI GPUs and Intel in CPUs. Intel is aggressively working to regain server market share through its expanding Xeon roadmap, Intel Foundry and advanced packaging technologies. Broadcom is increasing competitive pressure on AMD by strengthening its position in custom AI accelerators and high-performance networking for hyperscale customers.

AMD shares have risen 128% year to date (YTD), outperforming the broader Zacks Computer and Technology sector’s appreciation of 16.9%, NVIDIA’s 17.4% and Broadcom’s 21.3%. However, AMD has underperformed Intel, shares of which have jumped 171% YTD.

AMD Stock’s Price Performance
Image Source: Zacks Investment Research

AMD Shares Trade at a PremiumAMD shares are trading at a premium, as suggested by a Value Score of F. The AMD stock is trading at a forward 12-month price/earnings (P/E) of 45.8X compared with the broader Zacks Computer & Technology sector’s 21.5X.

AMD shares are trading at a premium compared with peers, including NVIDIA and Broadcom. Shares of NVIDIA and Broadcom are trading at a P/E multiple of 20.13 and 24.2, respectively. However, AMD is cheaper than Intel, shares of which are trading at a 56.57 P/E multiple.

AMD Stock’s Valuation
Image Source: Zacks Investment Research

Expanding Data Center Footprint Boosts AMD’s ProspectsAMD’s expanding Data Center footprint (58% of second-quarter 2026 revenues) is driven by strong demand for EPYC server CPUs. In the second quarter of 2026, Data Center revenues jumped 107% year over year with Cloud and enterprise EPYC sales each growing more than 70%. Moreover, customer demand for next-generation Venice processors is stronger than any previous EPYC launch, which is encouraging. AMD expects server revenues to grow more than 80% in the second half of 2026 and over 70% in 2027.

AMD’s biggest long-term catalyst is the commercial availability of Helios, its rack-scale AI platform. Helios delivers superior inference economics, including up to 30% better tokens per dollar as compared with competing solutions. AMD stated that customer demand is tracking ahead of initial forecasts while production will ramp through the fourth quarter of 2026 and into 2027.

AMD’s expanding AI clientele improves long-term growth visibility for investors. Anthropic plans to deploy up to 2 GW of MI450 GPUs while Microsoft will deploy Helios at scale on Azure. Existing multi-generation deployments with OpenAI and Meta continue to expand.

AMD management remains bullish over long-term growth opportunities, as AI accelerator total addressable market (TAM) is expected to reach roughly $1.4 trillion by 2030, Server CPU TAM around $220 billion by 2030 and overall high-performance AI computing opportunity approaching $2 trillion. AMD expects revenue growth to exceed its previous long-term target of 35% and annual earnings to exceed its previous target of $20 per share.

AMD’s Earnings Estimate Revision Shows Rising TrendThe Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.89 per share, up 3 cents over the past 30 days and indicating 57.5% growth from the figure reported in the year-ago quarter. 
 

The consensus mark for 2026 earnings is pegged at $7.36 per share, up 2% over the past 30 days, suggesting 76.5% growth from 2025’s reported figure.

Here’s Why AMD Stock is a Buy NowAMD’s post-earnings pullback offers investors an attractive entry point into a compelling long-term AI and data center growth story. Near-term weakness in the Client and Gaming businesses, intense competition and AMD’s premium valuation warrant some caution. Moreover, the meaningful revenue contribution from Helios and MI450 deployments is not expected until late 2026 and 2027. Nevertheless, AMD’s fundamentals remain encouraging. Explosive Data Center growth, robust demand for EPYC processors, rising earnings estimates and an expanding roster of major AI customers, including Microsoft, Anthropic, OpenAI and Meta, strengthen the company’s long-term growth prospects.

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

The past few years have been rough on Pfizer (PFE +2.14%). The company has generally posted subpar financial results due to weakness within its coronavirus franchise, which once helped it become the first biopharmaceutical company to achieve $100 billion in annual sales. The drugmaker is looking to turn things around by developing potential blockbuster products, and one of its most promising candidates is berobenatide, an investigational weight loss therapy. The anti-obesity market is growing rapidly and could be worth $190 billion by 2035, compared to just $79 billion last year, according to some estimates. Could Pfizer's berobenatide help the company capitalize on this large opportunity?

Image source: The Motley Fool.

Challenging the giants Pfizer will have to compete against the leaders in the weight-loss market, Eli Lilly, whose Zepbound is the best-selling drug in this niche, and Novo Nordisk, a pioneer in the market and the company behind Wegovy, perhaps the best-known brand in the field. How does berobenatide compare to Wegovy and Zepbound? It's hard to say without head-to-head clinical trials, but the data we do have so far suggest that Pfizer's candidate could be highly competitive.

In a phase 2b study, berobenatide achieved a weight loss of almost 16% (non-placebo-adjusted) in 32 weeks, with no plateau observed. Those are strong results, considering that Zepbound posted a weight loss of 20.2%, versus Wegovy's 13.7%, in a 72-week head-to-head study. If berobenatide can extend its results in phase 3 studies, we could be looking at the next billion-dollar weight loss drug.

The case for Pfizer Berobenatide has another advantage: It could be administered monthly. So, even with slightly lower efficacy than weekly anti-obesity medicines, it may attract a large patient population. Further, the medicine's safety and tolerability profile appears strong. Pfizer is planning to run various phase 3 studies for this candidate across weight management and obesity-related comorbidities, including such potential indications as obstructive sleep apnea and knee osteoarthritis. This is clearly a highly promising product, and it seems the market has yet to factor its potential into Pfizer's share price.

Today's Change

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0.56

Current Price

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26.76

The stock has basically moved sideways since November, when Pfizer acquired Metsera, the biotech company that originally developed berobenatide. It's also worth noting that Pfizer has plenty of other attractive candidates, especially in oncology. Also, even though its financial results haven't been strong, some of the company's products should perform well over the medium term. The list includes Padcev, a cancer medicine. Then there is Pfizer's strong dividend program. The company regularly increases its payouts and currently offers a juicy forward yield of 6.7%. All of those are great reasons to consider the stock.

Beware of these risks However, there are also significant risks to consider. There is, of course, the possibility that berobenatide will not perform as well as expected in phase 3 studies that test investigational drugs in broader, more representative patient populations using more rigorous endpoints. Even beyond that, we should expect many other pharmaceutical leaders to make headway in this field over the next couple of years.

For instance, Amgen (AMGN +1.50%) is also working on a weight loss candidate that could be administered monthly (or less frequently). As more weight loss drugs enter the market, it will become harder for newer medicines to earn approval (regulators will have higher standards), and it may put downward pressure on the prices of these drugs, making them less commercially viable. None of that means Pfizer's berobenatide won't be successful, but it's important to consider this before deciding to buy the company's shares.

Similar risks apply to Pfizer's efforts in oncology and other fields. That's all before we account for the company's upcoming patent cliffs, including that of Eliquis -- one of its best-selling drugs -- by the end of the decade. Can Pfizer overcome these potential challenges? My view is that it is well-positioned to do so, given the breadth of its pipeline across weight management, oncology, and other areas, which gives it multiple opportunities to hit the mark.

Within five years, we could be looking at a transformed lineup of approved drugs that will help replace the company's weakening coronavirus business and the patent cliffs it will soon experience. The stock appears attractive to investors willing to be patient and stay put despite the challenges Pfizer faces.

Ryman Hospitality Properties, Inc. (RHP) Q2 2026 Earnings Call August 7, 2026 10:00 AM EDT

Company Participants

Jennifer Hutcheson - Executive VP, CFO & Chief Accounting Officer
Colin Reed - Executive Chairman
Mark Fioravanti - President, CEO & Director
Patrick Chaffin - Executive VP & COO - Hotels

Conference Call Participants

Daniel Politzer - JPMorgan Chase & Co, Research Division
Bennett Rose - Citigroup Inc., Research Division
Aryeh Klein - BMO Capital Markets Equity Research
Charles Scholes - Truist Securities, Inc., Research Division
Chris Woronka - Deutsche Bank AG, Research Division
David Katz - Jefferies LLC, Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Peter Laskey - Evercore ISI Institutional Equities, Research Division
Jay Kornreich - Cantor Fitzgerald & Co., Research Division
Jackson Armstrong - Wells Fargo Securities, LLC, Research Division
John DeCree - CBRE Securities, LLC, Research Division
Michael Herring

Presentation

Operator

Welcome to Ryman Properties Second Quarter 2026 Earnings Conference Call. Hosting the call today from Ryman Hospitality Properties are Mr. Colin Reed, Executive Chairman; Mr. Mark Fioravanti, President and Chief Executive Officer; Ms. Jennifer Hutcheson, Chief Financial Officer; Mr. Patrick Chaffin, Chief Operating Officer; and Mr. Patrick Moore, Chief Executive Officer, Opry Entertainment Group. This call will be available for digital replay. The number is (800) 757-4770, with no conference ID required. [Operator Instructions]

It is now my pleasure to turn the floor over to Ms. Jennifer Hutcheson. Ma'am, you may begin.

Jennifer Hutcheson
Executive VP, CFO & Chief Accounting Officer

Good morning. Thank you for joining us today. This call may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the company's expected financial performance. Any statements we make today that are not statements of historical fact may be deemed to be forward-looking statements. Words such as believes or expects are intended to identify these statements, which may be affected by many factors, including those

Shares of Wix.com (WIX -1.89%) jumped 21.3% in July, according to data from S&P Global Market Intelligence. The website software provider saw its shares jump due to an unwind of AI winner-and-loser trades, with Wix considered a loser. Shares then continued to jump at the beginning of August after the company reported its second-quarter earnings.

The stock is still down 83% from its highs. Should you buy the dip on Wix stock after it began to turn things around in July?

Today's Change

(

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%) $

-1.15

Current Price

$

59.73

Software stock rebounded Many investors betting big on artificial intelligence (AI) have also made large bets against sectors they believe will be AI "losers," such as software. Wix and its website-building platform have been tossed into this loser camp, with professional investors taking heavy short positions against them.

One such massive investor was Situational Awareness, an upstart hedge fund that was betting heavily on AI stocks and against AI losers, and with a lot of debt. When some of its AI stocks began moving against it, the hedge fund was forced to close all its trades quickly and sell its entire portfolio in a block to the massive investment firm Citadel.

For Wix, this is likely why the share price rose in July: when a short seller covers their position, they are forced to buy back the stock on the open market, which can create upward pressure on the share price.

Image source: Getty Images.

Should you buy Wix stock? Wix stock began to move aggresively higher with the rest of the software sector heading into its Q2 earnings report, which was a few days ago in early August.

The company showed no signs of AI disrupting its offering, with revenue up 15% year-over-year in the period, strong gross margins, and positive free cash flow. Wix's stock initially jumped on these results but has since given back some of the gains in recent days.

Today, Wix trades at a market cap of $2.5 billion. It generated $2.1 billion in revenue over the last 12 months and more than $450 million in positive free cash flow. Management is taking this cash and returning it to shareholders, spending an aggressive $1.6 billion on repurchases last quarter alone, which is quickly reducing shares outstanding.

There may be risks that AI could disrupt Wix, but the company is still chugging along at a pace similar to its historical pace. Right now, with a market cap of $2.5 billion, it is trading at a single-digit multiple of its trailing free cash flow, which could make shares a good buy for the long-term.

, /PRNewswire/ -- Paramount Skydance Corporation (NASDAQ: PSKY) ("Paramount") today announced the extension of the Expiration Dates in connection with the previously announced (i) offers to purchase (the "Tender Offers" and each, a "Tender Offer") for cash, upon the terms and subject to the conditions set forth in the related offer to purchase (the "Offer to Purchase"), any and all of the identified notes in each series of the Existing Tender Offer Notes (defined by reference to the table set forth below) issued by Discovery Global Holdings, Inc. (formerly WarnerMedia Holdings, Inc.) (the "DGH Issuer") and Discovery Communications, LLC (the "DCL Issuer" and together with the DGH Issuer, each a "WBD Issuer" and collectively the "WBD Issuers"), as applicable, and (ii) offers to exchange (the "Exchange Offers" and each, an "Exchange Offer" and, together with the Tender Offers, the "Offers" and each, an "Offer"), upon the terms and subject to the conditions set forth in the related exchange offer memorandum (the "Offering Memorandum"), any and all of the identified notes in each series of the Existing Exchange Offer Notes (defined by reference to the table set forth below) (together with the Existing Tender Offer Notes, the "Offer Notes") issued by the applicable WBD Issuer for notes to be newly issued by Paramount.

The Expiration Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) have been extended to 5:00 p.m., New York City time, on August 21, 2026, unless further extended. The Settlement Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) will occur promptly after the Expiration Date and are currently anticipated to occur in the third quarter of 2026. Paramount anticipates extending the Expiration Date for such Tender Offers and Exchange Offers until such time that would result in the Settlement Dates occurring on or promptly following the closing date of the proposed acquisition (the "Acquisition") by Paramount of Warner Bros. Discovery, Inc. ("WBD"). Tenders of the Offer Notes in the Offers may be withdrawn at any time prior to the Expiration Date. The aforementioned extensions further extend the Expiration Dates previously extended by Paramount on June 12, 2026, June 26, 2026, July 13, 2026, July 17, 2026, July 24, 2026, and July 31, 2026.

As of 5:00 p.m., New York City time, on August 6, 2026, approximately 65.43% and 76.04% of the aggregate principal amount of the Existing Tender Offer Notes and Existing Exchange Offer Notes, respectively, have been validly tendered in the applicable Offers. As Paramount previously announced that it anticipates extending the Offers to align with the closing date of the Acquisition, Paramount does not view these figures to be representative of the final results of the applicable Offers.

Information about each series of Offer Notes eligible to participate in the Offers is summarized below.

Type of Offer

Offer Notes to be Tendered
or Exchanged, as
Applicable

Issuer of Offer Notes

CUSIP No. / Common Code
/ ISIN Eligible to
Participate in the Offers (1)

Aggregate Principal
Amount of Offer Notes
Eligible to Participate in the
Offers (2)

Tender Offer

3.950% Senior Notes due
2028

DCL Issuer

25470D CP2

US25470DCP24

$1,234,458,000

Exchange Offer

4.125% Senior Notes due
2029

DCL Issuer

25470D CQ0

US25470DCQ07

$655,825,000

Exchange Offer

3.625% Senior Notes due
2030

DCL Issuer

25470D CR8

US25470DCR89

$914,183,000

Exchange Offer

5.000% Senior Notes due
2037

DCL Issuer

25470D CS6

US25470DCS62

$453,281,000

Exchange Offer

6.350% Senior Notes due
2040

DCL Issuer

25470D CT4

US25470DCT46

$438,102,000

Exchange Offer

4.950% Senior Notes due
2042

DCL Issuer

25470D CU1

US25470DCU19

$130,366,000

Exchange Offer

4.875% Senior Notes due
2043

DCL Issuer

25470D V91
CV9US25470DC

$141,584,000

Exchange Offer

5.200% Senior Notes due
2047

DCL Issuer

25470D W74
CW7US25470DC

$3,161,000

Exchange Offer

5.300% Senior Notes due 2049

DCL Issuer

25470D X57
CX5US25470DC

$247,860,000

Tender Offer

3.755% Senior Notes due
2027

DGH Issuer

254948 AH5

US254948AH58

254948 AN2

US254948AN27

U25483 AA3

USU25483AA38

$1,189,336,000

Exchange Offer

4.054% Senior Notes due
2029

DGH Issuer

254948 AJ1

US254948AJ15

254948 AP7

US254948AP74

U25483 AB1

USU25483AB11

$1,353,828,000

Exchange Offer

4.279% Senior Notes due
2032

DGH Issuer

254948 AK8

US254948AK87

254948 AQ5

US254948AQ57

$2,691,764,000

Exchange Offer

5.050% Senior Notes due
2042

DGH Issuer

254948 AL6

US254948AL60

254948 AR3

US254948AR31

U25483 AD7

USU25483AD76

$4,104,687,000

Exchange Offer

5.141% Senior Notes due
2052

DGH Issuer

254948 AM4

US254948AM44

254948 AS1

US254948AS14

$949,883,000

Exchange Offer

4.302% Senior Notes due
2030

DGH Issuer

XS3393993285

339399328

€234,382,000

Exchange Offer

4.693% Senior Notes due
2033

DGH Issuer

XS3393994507

339399450

€316,641,000

__________

(1)

No representation is made as to the correctness or accuracy of the identifiers listed in this press release or printed on the Offer Notes. Such identifiers are provided solely for the convenience of the holders.

(2)

Represents the aggregate principal amount of Offer Notes outstanding that are eligible to participate in the Offers.

The Exchange Offers are being made pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and the rules and regulations of the Securities and Exchange Commission (the "SEC") promulgated thereunder, and are also not being registered under any state or foreign securities laws. Any securities offered pursuant to the Exchange Offers may not be offered or sold in the United States or to any U.S. persons (as defined below) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers will only be made, and the securities offered pursuant to the Exchange Offers are only being offered and issued, to holders of applicable Existing Exchange Offer Notes who are (a) reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act or (b) not "U.S. persons," as defined in Rule 902 of Regulation S under the Securities Act (such holders, "Eligible Holders"), and only Eligible Holders who have completed and returned the eligibility certification are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offers. The eligibility certification is available electronically at: https://gbsc-usa.com/eligibility/paramount. 

General

Each Offer is a separate offer, and each may be individually consummated, amended, extended, terminated, or withdrawn, subject to certain conditions and applicable law, at any time in Paramount's sole discretion, and without also consummating, amending, extending, terminating, or withdrawing any other Offer with respect to any other series of Offer Notes. Paramount may terminate an Offer if any of the conditions of such Offer described in the Offer to Purchase or Offering Memorandum, as applicable, are not satisfied or waived by the applicable Expiration Date, subject to applicable law. In addition, Paramount may waive the conditions to an Offer without extending such Offer in accordance with applicable law.

The Offers are being made solely by Paramount and are not being made by WBD or the WBD Issuers. None of Paramount, WBD, the WBD Issuers, the Dealer Managers, the Exchange Agent (as defined below), the Information Agent (as defined below), the trustees under each of the indentures governing the Offer Notes, the trustee or collateral agent under the indenture that will govern the notes to be issued in the Exchange Offers, or any affiliate of any of them makes any recommendation as to whether any holder of Offer Notes should tender or refrain from tendering all or any portion of the principal amount of such holder's Offer Notes for cash or notes to be issued in the Exchange Offers. No one has been authorized by any of them to make such a recommendation. Holders must make their own decision whether to tender Offer Notes in any Offer and, if so, the amount of Offer Notes to tender.

Only Eligible Holders may receive a copy of the Offering Memorandum and participate in the Exchange Offers. Paramount has engaged Global Bondholder Services Corporation to act as the exchange agent (in such capacity, the "Exchange Agent") and information agent (in such capacity, the "Information Agent") for the Offers. Questions concerning the Offers, or requests for additional copies of the Offer to Purchase or Offering Memorandum or other related documents, may be directed to Corporate Actions by telephone at (855) 654-2014 (U.S. toll-free) or (212) 430-3774 (banks and brokers) or by email at [email protected]. Holders should also consult their broker, dealer, commercial bank, trust company or other institution for assistance concerning the Offers. The Exchange Offer documents and the Tender Offer documents can be accessed at the following link: https://gbsc-usa.com/paramount. 

Paramount has engaged BofA Securities and Citigroup as dealer managers (in such capacity, the "Dealer Managers") for the Offers. Holders with questions regarding the Offers should contact BofA Securities, Inc. at +1 (888) 292-0070 (toll-free) or +1 (980) 388-3646 (collect) or [email protected] or Citigroup Global Markets Inc. at +1 (800) 558-3745 (toll-free) or +1 (212) 723-6106 or [email protected]. Latham & Watkins LLP is serving as legal counsel to Paramount and Cahill Gordon & Reindel LLP is serving as legal counsel to the Dealer Managers.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security, and does not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Paramount, a Skydance Corporation

Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. PSKY's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.

PSKY-IR

Cautionary Note Concerning Forward-Looking Statements

This communication contains "forward-looking statements" regarding the Acquisition and the other transactions referred to herein. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the Acquisition will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained or will be obtained subject to conditions that are not anticipated; the possibility that the transactions described herein will not be completed in the expected timeframe or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Acquisition; potential adverse effects to the businesses of Paramount or WBD during the pendency of the Acquisition, such as employee departures or distraction of management from business operations; negative effects of the announcement or the consummation of the Acquisition on the market price of WBD or Paramount stock; the risk of stockholder litigation relating to the Acquisition, including resulting expense or delay; the potential that the expected benefits and opportunities of the Acquisition, if completed, may not be realized or may take longer to realize than expected; risks related to the streaming business of the post-Acquisition combined business (the "Combined Company"); the adverse impact on the Combined Company's advertising revenues as a result of changes in consumer behavior, advertising market conditions, and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to the Combined Company's decision to invest in new businesses, products, services, and technologies, and the evolution of the Combined Company's business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of the Combined Company's content; damage to the Combined Company's reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining the Combined Company's intellectual property rights; domestic and global political, economic and regulatory factors affecting the Combined Company's business generally or the Acquisition; the inability to hire or retain key employees or secure creative talent; disruptions to the Combined Company's operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount's ability to integrate, the businesses of Paramount Global, Skydance Media, LLC, and WBD successfully and to achieve anticipated synergies, including in the amounts or on the timelines anticipated to realize such synergies; litigation related to the Acquisition and other matters or transactions; risks associated with the Combined Company's holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; risks related to our indebtedness, including our substantial outstanding debt obligations, our ability to incur substantially more debt and our ability to meet the financial and other covenants contained in the agreements governing the indebtedness of Paramount, WBD, or the Combined Company. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," Paramount's most recently filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 4, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and Paramount's subsequent filings with the SEC, and in WBD's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, including in the section captioned "Item 1A. Risk Factors," WBD's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026, and WBD's subsequent filings with the SEC. Neither Paramount nor WBD undertakes to update any forward-looking statement as a result of new information or future events or developments, except as required by law.

SOURCE Paramount Skydance Corporation

Key Takeaways MED shares gained 13.6% in a month as improving operating indicators supported momentum.Medifast's coach productivity rose 41% year over year, reaching its highest level since Q2 2022.MED's active earning coach base fell 48.7% year over year, keeping revenue under pressure. Medifast, Inc. (MED - Free Report) shares have gained 13.6% in the past month compared with the industry's 3.5% growth, bringing the sustainability of that move into focus. The stock's next leg may depend on whether improving operating indicators translate into a firmer business trend.

Image Source: Zacks Investment Research

Coach productivity and earnings expectations are moving in a better direction. Revenue and the size of the active coach base, however, remain under pressure.

MED's 13.5% Monthly Gain Needs Fundamental SupportThe recent rally comes against a mixed operating backdrop. Second-quarter 2026 revenues were $76.4 million, down from $105.6 million a year earlier, as fewer active earning coaches continued to weigh on the business.

The sequential picture is steadier. Management said revenues have stabilized around the mid-$70 million level in recent quarters and maintained full-year revenue guidance of $270 million to $300 million. That stability offers some support for the stock's momentum, but a durable recovery still requires improvement in the underlying sales engine.

MED's Earnings Surprise Adds to the Momentum CaseMedifast reported a second-quarter loss of 28 cents per share, substantially narrower than the consensus loss of 67 cents. Revenues also came in slightly above expectations, giving investors a better-than-feared quarterly result even as year-over-year sales remained weak.

MEDIFAST INC Price, Consensus and EPS SurpriseEstimate revisions add another constructive signal. The fiscal-year earnings estimate has moved 49.2% higher over the past four weeks. Rising earnings expectations can support price momentum when investors see a better path for profitability, although the company still expects a loss for 2026.

Medifast's Coach Productivity Is ImprovingAverage revenue per active earning coach increased 41% year over year to $6,529 in the second quarter and rose 20% sequentially. That marked the third consecutive quarter of year-over-year productivity growth and the highest level since the second quarter of 2022.

Management views productivity as an early indicator because stronger coach output has historically preceded better client acquisition, coach growth and revenue expansion. The company expects productivity to continue improving through 2026, helped by its focus on more productive coach organizations and the rollout of Trilivy-related initiatives.

MED Still Faces a Shrinking Coach BaseThe main constraint remains the size of Medifast's network. Active earning coaches fell 48.7% year over year to 11,700, and the company expects the count to continue declining during 2026 despite anticipating growth in new coach additions in the second half.

Among consumer-staples peers, Mama's Creations, Inc. (MAMA - Free Report) operates in prepared foods, while US Foods Holding Corp. (USFD - Free Report) is a foodservice distributor. Both offer a broader sector comparison for Medifast, though their operating models differ from MED's coach-led metabolic-health business.

MED's Momentum Score Supports a Mixed SetupThe stock currently carries a Zacks Rank #3 (Hold) and a Momentum Score of A. The favorable Momentum Score indicates that MED screens well on momentum characteristics, which fits with the recent share-price advance. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. 

The broader Style Score picture is less supportive. MED has a Value Score of D, Growth Score of F and VGM Score of D. Since Style Scores are designed to complement the Zacks Rank, that combination points to a mixed setup rather than an across-the-board positive signal. Continued productivity gains, firmer revenues and progress toward profitability would be important for sustaining the recent momentum.

Key Takeaways Williams Companies posted higher Q2 earnings and revenues year over year despite missing analyst estimates.WMB agreed to buy Momentum Midstream for up to $5.5B to expand its natural gas infrastructure.WMB raised 2026 adjusted EBITDA guidance to $8.3-$8.5B and forecast growth capex of $7.3-$7.9B. The Williams Companies, Inc. (WMB - Free Report) reported second-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. However, the bottom line increased from the year-ago period’s level of 46 cents, driven by better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P and West segments.

The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $2 million. The figure increased by 9.8% from the year-ago quarter’s reported revenues. This can be attributed to higher service revenues and increased product sales.

Adjusted EBITDA totaled $1.9 billion in the quarter under review, which was up 6% year over year. Cash flow from operations amounted to $1.4 billion, down 5.1% from the corresponding quarter of 2025.

WMB’s Momentum Midstream AcquisitionWilliams Companies has agreed to acquire Momentum Midstream in a deal worth up to $5.5 billion, strengthening its Haynesville footprint and expanding its integrated natural gas infrastructure to meet rising Gulf Coast LNG, power and industrial demand. Momentum adds more than 4,000 miles of pipelines, 6 Bcf/d gathering capacity and key processing assets, with the deal expected to boost AFFO and EPS. Williams Companies also announced the Delta Aces and Shelby Trough Connector expansions, positioning the company to capture growing natural gas demand and enhance basin connectivity.

WMB’s Q2 Segmental AnalysisTransmission, Power & Gulf: The segment reported an adjusted EBITDA of $959 million, up 6.2% from the year-ago quarter’s level. The increase was driven by contributions from projects placed in service, new Gulf volumes and higher storage revenues. However, the figure missed the Zacks Consensus Estimate by 2.5%.

Northeast G&P: Driven primarily by higher volumes at Ohio Valley Midstream and higher proportional EBITDA from Blue Racer Midstream and Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $540 million. This represents a 7.8% increase from $501 million in the year-earlier quarter. It beat the Zacks Consensus Estimate of $518 million.

West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $359 million, up 5.3% from the prior-year quarter’s level of $341 million. Strong results were fueled by Louisiana Energy Gateway, placed into service in third-quarter 2025, as well as higher gathering volumes, including contributions from the 2025 Rimrock and Saber acquisitions. However, the figure missed the Zacks Consensus Estimate of $389 million.

Gas & NGL Marketing Services: The segment posted a negative adjusted EBITDA of $1 million, narrowing down from the year-ago negative EBITDA of $15 million, resulting from higher gas marketing margins due to winter storms. The Zacks Consensus Estimate for the same was pegged at a negative $7.27 million.

Other: This segment posted an adjusted EBITDA of $64 million, representing a 17.9% decrease from $78 million in the year-earlier quarter, caused by unfavorable changes in net realized results from upstream operations, including the impact of the divested South Mansfield interests. However, the figure beat the Zacks Consensus Estimate of $57 million.

WMB’s Costs, Capex & Balance SheetIn the reported quarter, total costs and expenses of $1.9 billion increased by about 2% from the year-ago quarter’s figure.

Total capital expenditure (capex) was $1.8 billion. As of June 30, 2026, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $203 million and long-term debt of $28.1 billion, with a debt-to-capitalization of 64.7%.

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

WMB’s 2026 GuidanceWilliams Companies raised its 2026 guidance and now expects adjusted EBITDA of $8.3-$8.5 billion, with growth capital expenditures projected at $7.3-$7.9 billion. Factoring in the pro forma contribution from the Momentum Midstream acquisition over the past four quarters, the company expects its 2026 leverage ratio to be approximately 3.75x at the midpoint. The growth capex and debt-to-adjusted EBITDA guidance exclude certain reimbursable long-lead equipment costs.

Important Earnings at a GlanceWhile we have discussed WMB’s second-quarter results in detail, let us take a look at three other key reports in this space.

Expand Energy Corporation (EXE - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.

As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%.

NOV Inc. (NOV - Free Report) reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.

The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.

As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%.

Core Laboratories Inc. (CLB - Free Report) reported second-quarter 2026 adjusted earnings of 11 cents per share, which beat the Zacks Consensus Estimate of 8 cents, driven by outperformance of the Production Enhancement segment. However, the bottom line decreased from the year-ago quarter’s reported figure of 19 cents due to the underperformance of the Reservoir Description segment and increased costs and expenses.

This oilfield service provider reported second-quarter operating revenues of $124.6 million, missing the Zacks Consensus Estimate of $128 million and decreasing from the earlier-year quarter’s reported figure of $130.1 million. This can be attributed to military conflicts in the Middle East and the Russia-Ukraine region, which disrupted energy infrastructure, delaying projects, disrupting crude oil trade and reducing demand for the company's international laboratory services.

As of June 30, 2026, the company had cash and cash equivalents of $22.7 million and long-term debt of $113.9 million. CLB’s debt-to-capitalization was about 29%.

Key Takeaways Lumentum expects fiscal Q4 revenues of $960M-$1.01B and non-GAAP EPS of $2.85-$3.05.Strong cloud and AI demand, 1.6T transceivers and OCS contributions are expected to support growth.Supply constraints in EMLs, pump lasers and OCS could limit Lumentum's ability to meet customer demand. Lumentum (LITE - Free Report) is set to report its fourth-quarter fiscal 2026 results on Aug. 11.

For the to-be-reported quarter, Lumentum expects revenues between $960 million and $1.01 billion. LITE expects non-GAAP earnings in the $2.85-$3.05 per share range.

The Zacks Consensus Estimate for revenues is pegged at $988.56 million, indicating an increase of 105.65% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $2.99 per share, up by 3 cents over the past 30 days. Lumentum reported earnings of 88 cents in the year-ago quarter.

Consensus Estimate Trend
Image Source: Zacks Investment Research

LITE’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.59%. 

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of LITE’s Q4 ResultsLumentum’s fourth-quarter fiscal 2026 results are expected to have benefited from continued robust demand across its cloud and AI portfolio, supported by strength in both components and systems. More than half of the anticipated sequential revenue growth (21.3% at current guidance) is expected to have come from components, with the balance driven mainly by high-speed transceivers and additional Optical Circuit Switch (OCS) contributions.

Demand for EML laser chips and scale-across products, including pump lasers and narrow-linewidth laser assemblies, is likely to have remained particularly strong. In the third quarter of fiscal 2026, narrow-linewidth laser shipments had increased more than 120% year over year, and pump laser shipments grew 80%, with these products effectively sold out for the foreseeable future.

Another important fiscal fourth-quarter catalyst is likely to have been the ramp of 1.6T transceivers. Lumentum entered the quarter expecting to increase shipments of 1.6T products, including initial integration of internally sourced CW lasers, while continued yield improvements and lower scrap rates were expected to support transceiver profitability. The transition from 800G to 1.6T also represents a favorable content and pricing dynamic for the company. LITE noted that 200G EMLs used for 1.6T applications carry roughly twice the ASP of the 100G EMLs predominantly used in 800G transceivers.

Meanwhile, favorable product mix, pricing discipline, manufacturing utilization and operating leverage should have supported further earnings expansion. These factors had already lifted fiscal third-quarter non-GAAP gross margin by 540 basis points (bps) sequentially to 47.9% and operating margin by 700 bps to 32.2%.

Despite the favorable demand backdrop, supply constraints could have limited Lumentum’s ability to fully capitalize on customer demand in the fourth quarter of fiscal 2026. Management indicated that the EML supply-demand gap remained above 30%, while pump-laser constraints were even more pronounced, forcing the company to make allocation decisions among customers. OCS growth has similarly been gated by supply-chain tightness amid a substantial increase in requested output.

LITE Shares Outperform Sector Lumentum shares have jumped a whopping 127.4% in the year-to-date period (YTD), outperforming the broader Zacks Computer and Technology sector’s appreciation of 16.9%. The company has outperformed peers like Coherent (COHR - Free Report) and Ciena (CIEN - Free Report) but lagged Marvell Technology (MRVL - Free Report) YTD. Shares of Coherent, Ciena and Marvell Technology have returned 81.1%, 72.7% and 147.6%, respectively, over the same time frame.

LITE Stock’s Price Performance
Image Source: Zacks Investment Research

Lumentum and Coherent are competitors in high-speed optical modules and transceivers used in data centers and optical links for AI infrastructures. Ciena is a leading provider of optical networking equipment, software and services. Marvell Technology is a competitor in optical networking for AI and data center applications.

The LITE stock is not so cheap, as suggested by the Value Score of F. In terms of the forward 12-month price-to-sales (P/S), LITE is trading at 10.93X, higher than the broader sector and peers. While the sector is trading at 6.54X, Ciena and Coherent trade at 7.63X, and 6.42X, respectively. However, LITE is trading at a discount compared with Marvell Technologies, shares of which trade at 13X.

LITE Stock is Trading at a Premium
Image Source: Zacks Investment Research

LITE's Prospects Ride on Strong AI DemandLumentum appears well positioned to benefit from a multiyear expansion in optical content as AI infrastructure increasingly shifts from copper toward optics. Beyond its current EML and transceiver strength, the company sees four major growth vectors — OCS, optical scale-out, optical scale-up and transceivers — with several still making only modest contributions to revenues. Management expects OCS and scale-out contributions to become more meaningful ahead, while optical scale-up could see major inflection points beginning in 2027.

The company has also highlighted the transition toward 1.6T and eventually 3.2T connectivity, which should increase optical content requirements. Lumentum’s strong position in differentiated high-performance lasers, where reliability, performance and customer manufacturing yields create meaningful barriers to entry, could enable the company to capture a sizable share of this expansion.

Scale-up connectivity and CPO/NPO represent particularly compelling longer-term opportunities. Lumentum expects optical scale-up to significantly increase optical intensity as connectivity moves inside and between AI racks, potentially creating an opportunity substantially larger than scale-out. According to LITE, optical intensity could increase by at least three times when scale-up takes hold, while CPO demand remained strong and CW-laser requirements continued to rise. OCS offers another substantial runway as customer engagements and use cases broaden, including higher and lower-port-count configurations and potential in-rack applications.

Longer term, Lumentum also intends to broaden its component portfolio beyond lasers into areas such as photonic ICs, photodiodes, laser drivers and potentially TIAs, expanding the company's addressable content within next-generation optical systems.

ConclusionLumentum appears to have entered the fiscal fourth quarter with strong momentum, backed by surging AI-related optical demand, the 1.6T transceiver ramp, tight EML and scale-across supply, improving mix and substantial operating leverage. More importantly, many of its potentially largest opportunities — including OCS, scale-out CPO and especially optical scale-up — remain at relatively early stages of adoption. Lumentum's differentiated laser portfolio, expanding optical footprint and exposure to rising AI connectivity requirements provide a favorable foundation for sustained revenue and earnings growth over the longer term.

Lumentum currently has a Zacks Rank #2 (Buy), which implies that investors should buy the stock ahead of fiscal fourth-quarter earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Microchip fiscal Q1 sales rose 38% to $1.485B as demand improved and inventory days fell to 175.Data center revenues jumped 97.8%, while PCIe Gen6 connectivity design wins doubled to 12 programs.Microchip sees fiscal Q2 sales of $1.589B-$1.618B and non-GAAP EPS of 91-95 cents. Microchip Technology (MCHP - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 76 cents per share, up 181.5% year over year and beating the Zacks Consensus Estimate by 8.6%.

Net sales of $1.485 billion rose 38% and beat the $1.448 billion consensus mark by 2.5%.

Improving demand, continued inventory normalization and stronger factory utilization supported the quarter. Inventory days declined to 175 from 185 at March-end, while bookings remained strong and the book-to-bill ratio stayed well above 1.

MCHP Demand Recovery Gains MomentumSales increased 13.2% sequentially and exceeded the high end of management’s prior guidance. Distribution sell-through increased meaningfully, while customer activity improved across several key end markets.

Microchip credited higher factory utilization, lower underutilization charges and disciplined expense management for improving operational leverage. The company also said stronger customer engagement and healthy booking activity reinforced confidence in the ongoing business recovery.

Mixed-signal microcontrollers remained Microchip’s largest product line, generating $739.1 million in sales. Analog contributed $410.9 million, while other products generated $334.7 million.

Geographically, Asia led with $769.5 million in revenues, followed by the Americas at $430.8 million and Europe at $284.4 million. Distribution accounted for 52% of first-quarter sales, while the direct channel represented 48%, highlighting a relatively balanced channel mix.

Microchip Data Center Momentum BuildsData center represented 17.1% of the June-quarter revenue mix and posted 97.8% year-over-year growth, the strongest growth rate among Microchip’s disclosed end markets.

Communications grew 53.3%, while aerospace and defense increased 45.6%.

Microchip also doubled its PCIe Gen6 connectivity design wins sequentially, exiting the quarter with 12 programs versus six at the end of March. The company expects its total data center portfolio to grow 69.3% year over year to $1 billion in calendar 2026, supported by products spanning connectivity, storage, power, timing and security.

MCHP Margin Expansion AcceleratesNon-GAAP gross margin reached 63.8%, expanding 949 basis points (bps) year over year.

Non-GAAP operating expenses represented 28.7% of sales compared with 33.7% in the year-ago period.

Non-GAAP operating income was $521.1 million, up from $222.3 million a year earlier, underscoring the operating leverage generated by the revenue rebound. Non-GAAP operating margin climbed 1,443 bps to 35.1%, reflecting stronger absorption of manufacturing costs as utilization improved.

MCHP Cash Flow and Leverage ImproveAs of June 30, 2026, Microchip had cash and short-term investments of $272.3 million.

Cash flow from operations totaled $511.5 million compared with $275.6 million in the year-ago quarter. Free cash flow increased to $497.6 million from $257.7 million, representing 33.5% of net sales.

Microchip reduced net debt by approximately $170 million during the quarter. Net debt to adjusted trailing 12-month EBITDA improved to 2.85x from 3.54x in the prior quarter. The company also returned $246.9 million to common stockholders through dividends.

Microchip Guides Strong September QuarterFor the second quarter of fiscal 2027, Microchip expects net sales between $1.589 billion and $1.618 billion, which represents sequential growth of 7-9%, with the midpoint implying approximately 40.6% year-over-year growth.

The company expects non-GAAP gross margin of 66-67%, operating margin of 38.5-39.5% and operating expenses at 27.5% of sales.

Non-GAAP earnings are projected at 91-95 cents per share.

Capital expenditures are expected at $20-$25 million for the September quarter and approximately $100 million for fiscal 2027.

Zacks Rank & Upcoming Earnings to ConsiderMicrochip currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are NVIDIA (NVDA - Free Report) , Inuvo (INUV - Free Report) and Kimball Electronics (KE - Free Report) . While Inuvo and Kimball Electronics sport a Zacks Rank #1 (Strong Buy) each at present, NVIDIA has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA, Inuvo and Kimball Electronics are set to report their quarterly results on Aug. 26, 11 and 12, respectively. Year to date, shares of Kimball Electronics and Inuvo have dropped 5.1% and 58.9%, respectively, while NVIDIA has jumped 17.4%.

Key Takeaways NYT shares fell 12.8% in four weeks as investors weigh growth and execution risks.NYT added 280,000 digital-only subscribers in Q2, below prior quarters' stronger gains.Digital-only subscription and advertising revenues grew, while print declines added pressure. The New York Times Company (NYT - Free Report) shares have fallen 12.8% over the past four weeks, putting attention on whether the retreat has improved the stock’s risk-reward profile.

The business still shows digital strength, but slower subscriber additions, print declines and elevated costs complicate the case. Investors must weigh recurring digital revenue growth and pricing power against those execution risks.

NYT Subscriber Growth Faces New QuestionsNYT ended the second quarter of 2026 with 13.35 million total subscribers, including 12.80 million digital-only subscribers. It added 280,000 net digital-only subscribers during the quarter, down from 310,000 in the first quarter.

The slowdown is clearer against the second half of 2025, when quarterly digital-only net additions reached 460,000 and 450,000.

Digital Revenue Supports NYT’s Business ModelDigital-only subscription revenues rose 16.4% year over year to $407.9 million in the second quarter. Digital-only average revenue per user increased 3.1% to $9.94, supported by subscribers moving from promotional offers to higher prices and pricing actions for certain tenured subscribers.

Digital advertising revenues climbed 20.7% to $114 million, helped by marketer demand and greater advertising supply. News Corporation (NWSA - Free Report) offers a relevant comparison, with Dow Jones continuing to grow digital-only subscriptions while print volume declines. Fox Corporation (FOXA - Free Report) is also leaning on digital growth, including streaming, as media companies compete for audience attention and advertising budgets.

NYT Print Declines Add PressurePrint remains a structural drag. Second-quarter print advertising revenues fell 11.1% year over year to $35.2 million, while print subscription revenues declined 0.8% to $130 million.

Print subscribers also slipped to about 550,000 from 580,000 a year earlier. That makes continued digital growth increasingly important because the newer revenue streams must absorb ongoing erosion in the legacy business.

NYT Valuation Tests Investor ConfidenceThe recent pullback has brought NYT’s forward 12-month earnings multiple down to 20.9X. That compares with 19.6X for its Zacks sub-industry, 17.2X for the Zacks sector and 20.7X for the S&P 500.

The discount from NYT’s five-year median multiple of 27.3X is meaningful, but the stock is not clearly cheap relative to current benchmarks. The Zacks Consensus Estimate calls for 2026 earnings of $2.92 per share and revenues of $3.10 billion, while the current-year earnings estimate has edged 0.3% lower over the past four weeks.

Image Source: Zacks Investment Research

NYT’s Rankings Reflect Mixed SignalsThe pullback creates a more measured valuation setup, but near-term caution remains warranted given slowing subscriber additions, print weakness and continued spending on journalism, marketing and product development. Second-quarter adjusted operating costs rose 10% year over year to $607.2 million.

NYT currently carries a Zacks Rank #4 (Sell), a short-term signal tied to earnings estimate revisions. Its Growth Score of A and Momentum Score of A point to favorable growth and momentum characteristics, while its Value Score of D indicates weaker value characteristics. The VGM Score of B is favorable, but Style Scores are designed to complement the Zacks Rank rather than override it. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CareTrust REIT, Inc. (CTRE) Q2 2026 Earnings Call August 7, 2026 11:00 AM EDT

Company Participants

Lauren Beale - Senior VP & Chief Accounting Officer
David Sedgwick - CEO, President & Director
James Callister - Chief Investment Officer & Secretary
Derek Bunker - CFO & Treasurer

Conference Call Participants

William John Kilichowski - Wells Fargo Securities, LLC, Research Division
Austin Wurschmidt - KeyBanc Capital Markets Inc., Research Division
Robin Haneland - BMO Capital Markets Equity Research
Michael Goldsmith - UBS Investment Bank, Research Division
Michael Carroll - RBC Capital Markets, Research Division
Farrell Granath - BofA Securities, Research Division
Richard Anderson - Cantor Fitzgerald & Co., Research Division
Alec Feygin - Robert W. Baird & Co. Incorporated, Research Division
David Rodgers - Raymond James & Associates, Inc., Research Division
Michael Stroyeck - Green Street Advisors, LLC, Research Division
Jyoti Yadav - Mizuho Securities USA LLC, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the CareTrust Second Quarter Earnings Call. [Operator Instructions] I will now hand the conference over to Lauren Beale, Chief Accounting Officer. Lauren, please go ahead.

Lauren Beale
Senior VP & Chief Accounting Officer

Thank you, and welcome to CareTrust REIT's Second Quarter 2026 Earnings Call. Today, we will make forward-looking statements based on management's current expectations, including statements regarding future financial performance, dividends, acquisitions, investments, financing plans, business strategies and growth prospects. These forward-looking statements are subject to risks and uncertainties that could cause actual results to materially differ from our expectations. These risks are discussed in CareTrust REIT's most recent Form 10-Q filing with the SEC. We do not undertake a duty to update or revise these statements, except as required by law.

During the call, the company will reference non-GAAP metrics such as EBITDA, FFO and FAD. A reconciliation of these measures to the most comparable GAAP financial measures is available in our

Key Takeaways Gartner raised 2026 adjusted EPS guidance to at least $14 and free cash flow to at least $1.185B.Gartner cut adjusted revenue guidance to at least $6.375B as Consulting revenues fell 8.8% in Q2.Gartner's Q2 adjusted EBITDA margin rose to 27.8%, while buybacks helped adjusted EPS climb 23.8%. Gartner, Inc. (IT - Free Report) raised its 2026 profit and cash-flow expectations even as it lowered its adjusted revenue outlook. The divergence shifts investor attention toward cost control, margins and capital allocation.

The key question is whether those levers can keep supporting per-share earnings while top-line growth remains restrained.

Gartner Raises Its 2026 Profit ExpectationsGartner lifted adjusted EPS guidance to at least $14 from $13.25. Adjusted EBITDA excluding the divested operation is now expected to reach at least $1.570 billion, up from $1.545 billion previously.

Free cash flow guidance also increased to at least $1.185 billion from $1.160 billion. The higher targets point to greater confidence in profitability and cash generation despite a more measured revenue outlook.

IT Trims Its Revenue OutlookAdjusted revenue guidance declined to at least $6.375 billion from $6.405 billion. The Insights revenue outlook also moved lower to at least $5.170 billion from $5.200 billion.

The simultaneous profit upgrade and revenue reduction puts more weight on operating efficiency and business mix. Gartner said expenses reflect agile cost management while it continues investing in experts and artificial intelligence to support future top-line growth.

Gartner’s Q2 Margins Show Why Profits Can RiseSecond-quarter adjusted EBITDA excluding the divested operation increased 6.4% to $466 million. The corresponding margin reached 27.8%, expanding 90 basis points year over year.

GAAP operating income rose to $378.5 million from $327.1 million. Operating margin improved to 22.6% from 19.4%, reinforcing the margin expansion behind the higher full-year profit expectations.

IT’s Segment Mix Creates Both Support and PressureInsights revenues rose 2.1% to $1.290 billion, while Conferences revenues increased 15.5% to $244 million. Conferences contribution margin reached 59.5%, up from 57.4% a year earlier.

Consulting revenues fell 8.8% to $142 million and contribution declined 12.6% to $54 million. Forrester Research, Inc. (FORR - Free Report) , an independent research and advisory firm, is a relevant peer for the Insights business. Accenture plc (ACN - Free Report) , which offers broad consulting and technology services, provides context for Gartner’s Consulting exposure.

Gartner’s Cash Flow and Buybacks Add LeverageSecond-quarter free cash flow increased 8.9% to $378 million. Gartner also repurchased 3.6 million shares for $547 million during the quarter, while its board increased the repurchase authorization by $500 million in July.

Adjusted EPS rose 23.8% to $4.37, faster than the 6.6% increase in adjusted net income to $291 million. The diluted share count fell to 66.6 million from 77.4 million, showing how buybacks amplified per-share growth.

                                                                 Image Source: Zacks Investment Research

IT’s Positive Signals Reinforce the Profit StoryGartner’s raised earnings and free cash flow outlook, wider margins and lower share count support the profit case, but slower revenue expectations keep execution risk in focus. Improvement in Consulting and sustained margin discipline remain important variables.

The stock currently carries a Zacks Rank #1 (Strong Buy), You can see the complete list of today’s Zacks #1 Rank stocks here.It carries a Value Score of A and VGM Score of A. It also has a Growth Score of B and Momentum Score of B.

The Zacks Rank places IT among the top-ranked stocks based on earnings estimate revisions, while the A and B Style Scores indicate favorable value, growth and momentum characteristics. These signals are positive, but revenue growth and segment execution still warrant monitoring.