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Burger King has overtaken Wendy's as the second-largest burger chain in the U.S. by systemwide sales, retaking its crown six years after losing it to the rival chain.

The change in positions follows the two companies' diverging results over the past two years.

Wendy's has reported shrinking U.S. same-store sales for six straight quarters. Its domestic same-store sales slipped 7% in its latest quarter, the company reported on Friday.

Meanwhile, Burger King has been embarking on a turnaround and has seen its domestic same-store sales rise over the past five quarters; the Restaurant Brands International chain on Thursday reported U.S. same-store sales growth of 8.5% for its second quarter.

McDonald's holds onto its spot as the number one burger chain, with a significant lead. Although the company only reports its systemwide sales on a global basis, it held about 48% of the U.S. burger market share in 2024, according to Barclays. For comparison, at that time, Wendy's had an 11.4% share of the market, while Burger King had a 10% hold.

Wendy's initially overtook Burger King through the success of its nationwide breakfast launch. But staying number two has been a rocky road.

Both Wendy's and Burger King had to navigate the Covid-19 pandemic and the subsequent supply chain issues that led to soaring food costs. Then came the consumer pushback against rising menu prices and a pullback in restaurant spending.

In late 2022, Restaurant Brands announced a turnaround plan for Burger King's U.S. business after a year of lackluster sales. The strategy has focused on improving its food quality, investing in marketing and remodeling restaurants.

While Burger King tried to find its footing, Wendy's was dealing with a revolving door of chief executives at a time when consumers were growing even more value conscious and beef costs were soaring.

In 2024, Wendy's longtime CEO Todd Penegor retired after eight years in the role. PepsiCo executive Kirk Tanner succeeded him but left after a little more than a year to lead Hershey's. CFO Ken Cook took over as interim CEO until Wendy's tapped former Potbelly CEO Bob Wright as his permanent replacement in May.

"Our quality differentiation has eroded, our value proposition has weakened, and we have not consistently delivered the experience customers expect from Wendy's," Wright said on the company's earnings conference call on Friday. "These issues have weighed on traffic and created pressure on the restaurant economic model, which is the heartbeat of this business, and this is reflected in our latest results."

Now Wendy's is planning to embark on its own turnaround to revive sales, meaning that Burger King can't rest on its laurels.

By Reuters

August 7, 20264:13 PM UTCUpdated 2 hours ago

A view shows the logo of Brazilian state-run oil firm Petrobras in Rio de Janeiro, Brazil June 5, 2025. REUTERS/Ricardo Moraes Purchase Licensing Rights, opens new tab

CompaniesRIO DE JANEIRO, Aug 7 (Reuters) - Brazil's state-run ​oil firm Petrobras (PETR3.SA), opens new tab ‌will "very likely" exceed its forecast for ​oil production ​in 2026, CEO Magda ⁠Chambriard told ​analysts during an earnings ​call on Friday.

Chambriard said oil production for ​the second ​quarter was 200,000 barrels per ‌day ⁠above the company's goal. For the year so ​far, ​the ⁠firm has produced on average ​2.6 million ​bpd, ⁠over its 2.5 million bpd ⁠projection.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Reporting ​by Fabio ​Teixeira and Marta Nogueira; Editing ​by Nia Williams

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways Chili's Q4 revenues are modeled to rise 5.1% as traffic, value and chicken sandwiches support sales.Maggiano's Q4 revenues are modeled to fall 0.4%, with negative comps and traffic still weighing on growth.Brinker may gain from sales leverage and labor efficiencies, while commodity inflation pressures costs. Brinker International, Inc. (EAT - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 12, before the opening bell.

EAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%.

Trend in the Estimate Revision of EATThe Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) is pegged at $3.07, indicating a rise of 23.3% from $2.49 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $1.53 billion. The metric suggests a rise of 4.6% from the year-ago quarter’s figure.

Let us take a look at how things might have shaped up in the quarter to be reported.

Factors Likely to Shape EAT’s Quarterly ResultsBrinker’s fiscal fourth-quarter performance is likely to have benefited from continued momentum at Chili’s, supported by positive traffic, strong value positioning and improvements in the overall guest experience. Management stated that April started the quarter with mid-single-digit sales growth and positive traffic and expressed confidence that Chili’s would deliver mid-single-digit sales growth and positive traffic for the quarter to be reported.

The chicken sandwich platform is likely to have been a key contributor to Chili’s sales and traffic in the to-be-reported quarter. The platform was launched on April 14, with the Big Crispy and Spicy Big Crispy included at the $10.99 opening price point of the 3 for Me platform. The launch was backed by the Better Than Fast Food campaign, emphasizing portion size and value relative to fast-food alternatives.

Chili’s continued focus on everyday value, food, service and atmosphere is also expected to have aided customer engagement. Management has emphasized maintaining a compelling value proposition while attracting new guests through marketing and menu innovation. Its operational strategy has centered on simplifying restaurant processes and improving cycle times to support higher throughput. The company noted that its higher-volume “north of 6” restaurants serve 20% to 80% more guests than the current average restaurant, indicating additional capacity for traffic growth over time. Our model predicts fiscal fourth-quarter revenues from Chili’s to rise 5.1% year over year to $1.41 billion.

Meanwhile, Maggiano’s is likely to have remained a headwind to consolidated revenue growth. The brand continued to experience negative comparable sales and traffic trends in the previous quarter. However, management noted sequential improvement after adjusting for weather and calendar effects, supported by more abundant portions, enhanced family-style offerings and the return of classic menu items. Improving value scores are encouraging, although management expects the turnaround to remain gradual. Our model predicts fiscal fourth-quarter revenues from Maggiano's to decline 0.4% year over year to $121.9 million.

On the earnings front, Brinker is likely to have benefited from sales leverage and labor efficiencies. Management expects continued top-line momentum to provide operating leverage, with labor expected to offset some of the pressure from higher food and beverage costs. Improved restaurant productivity is also likely to have supported profitability. The company also anticipates restaurant margin growth to resume on a year-over-year basis in the fiscal fourth quarter. Our model predicts Food and Beverage Costs to rise 3.6% year over year to $382.5 million.

However, higher commodity costs are likely to have tempered earnings growth. Management expects commodity inflation to run in the mid-single digits during the fiscal fourth quarter, with beef remaining a key source of pressure. The company also indicated that food and beverage costs could increase sequentially following the expiration of a beef contract.

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

Earnings ESP for EAT: Brinker has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Brinker’s Zacks Rank: The company currently has a Zacks Rank #3.

Other Stocks With the Favorable CombinationHere are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.

Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. SG’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +12.00% and a Zacks Rank of 3.

In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently has an Earnings ESP of +133.33% and a Zacks Rank of 3.

In the to-be-reported quarter, Cracker Barrel’s earnings are expected to register an 83.8% year-over-year decline. Cracker Barrel’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 128.6%.

Key Takeaways Ondas won a $50M U.S. Army LUS order, lifting Mistral's program awards above $240M.Mistral is producing LUS systems for deliveries starting in Q3 2026, with the new order extending visibility.Mistral's capabilities is helping Ondas compete for large-scale U.S. government defense contracts. Ondas Inc (ONDS - Free Report) recently secured a significant order of more than $50 million from the U.S. Army for tactical Lethal Unmanned Systems (“LUS”), reinforcing its growing presence in the defense market.

This order, awarded to Ondas’ subsidiary Mistral Inc., falls under a previously granted $982 million multi-year Indefinite Delivery, Indefinite Quantity (“IDIQ”) contract tied to the Army’s LUS program. Mistral's total awards, under the LUS program, to date have surpassed $240 million, including the initial $190.8 million award.

The contract underscores Ondas’ expanding role in the rapidly evolving precision-strike segment, which is witnessing strong global demand. 
Strategically, the deal highlights the success of Ondas’ acquisition of Mistral, which has positioned it to compete more effectively for large-scale, multi-year government contracts.

Mistral is a prime contractor on U.S. Army and USSOCOM uncrewed and autonomous platforms procurement vehicles. It brings U.S.-based manufacturing, assembly, integration and quality assurance capabilities to Ondas’ operations, supporting program execution and compliance with the country’s defense sourcing requirements. Mistral has a wide-ranging exposure, including advanced mission equipment integration, survivability and mobility enhancements, unmanned systems procurement, defense electronics and lifecycle sustainment services.

Mistral is producing systems for the initial LUS order, with delivery beginning in the third quarter of 2026. The new order extends this production visibility.
Management continues to expect demand for precision-strike and loitering-munition capabilities to keep accelerating as U.S. and allied forces focus on autonomous and deployable strike capabilities.

However, the opportunity is unfolding in an increasingly crowded drone space. Given the rising adoption of autonomous and distributed warfare systems, several established and fast-upcoming players in the drone space are vying for a larger share of this lucrative market. The unmanned aerial vehicle drones market is expected to witness a CAGR of 9.3% from 2026 to 2031, according to a report from Mordor Intelligence.

Let's Evaluate the Competitive TerrainRed Cat Holdings (RCAT - Free Report) is one of the closest competitors for Ondas in the drone space. Teal Drones and FlightWave Aerospace are two of its wholly-owned affiliates. Its portfolio also includes Black Widow (small, unmanned aircraft systems), TRICHON (a military-grade hybrid VTOL) and FANG, an NDAA-compliant FPV drone.

It recently introduced Hellcat, a dual-use small unmanned aircraft system based on the Black Widow platform. RCAT’s expansion into USVs via Blue Ops adds a significant new revenue stream. It also completed the acquisition of Quaze Technologies Inc., which develops wireless power transfer technology for unmanned and autonomous systems. The company recently reported second quarter 2026 results. Revenues surged 527% year over year to $20.2 million.

The broader demand backdrop strongly supports sustained growth in Kratos Defense & Security Solutions (KTOS - Free Report) drone business. Unlike ONDS, Kratos’ unmanned systems business involves scaled defense programs and vertical integration. At the heart of this business lies the XQ-58A Valkyrie combat collaborative aircraft (“CCA”), which has secured a key role in the U.S. defense ecosystem.

Additionally, the company is actively participating in multiple next-gen drone and CCA programs, with strong positioning in future procurement phases. Earlier in the year, Northrop Grumman, a KTOS partner, received the $230 million MUX TACAIR CCA program award, which will be split equally with Kratos. For this program, Northrop will equip its mission systems with Kratos Valkyrie CCA, validating Valkyrie’s operational relevance. The company is also expanding its presence in C-UAS, a category expected to ramp significantly over the next few years.

Second quarter revenues came in at $458.8 million, up 30.5%, with unmanned segment revenues increasing 8.1% year over year on an organic basis. Beyond drones, it is also expanding into other high-growth areas, such as hypersonics, propulsion systems, space and satellite systems, and microwave electronics

ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have gained 16.3% in the past month against the Wireless-National industry’s decline of 16.1%

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, ONDS is trading at 6.03, versus the industry’s multiple of 7.02.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ONDS’ earnings for the current year has been revised downwards over the past 60 days.

Image Source: Zacks Investment Research

ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways nVent raised 2026 sales growth guidance to 37-39% and adjusted EPS guidance to $5-$5.10.NVT expects 2026 data center sales to exceed $2B, more than double last year, as liquid cooling expands.nVent plans a third Minnesota liquid cooling facility as backlog remains healthy at $2.5B. nVent Electric plc (NVT - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating AI data center demand, broader short-cycle strength and another sharp increase in its full-year outlook. Management focused on scaling capacity quickly enough to support demand while preserving margins and execution discipline. 

Adjusted EPS of $1.45 topped the Zacks Consensus Estimate of $1.16. Revenues of $1.47 billion also exceeded the Zacks Consensus Estimate of $1.26 billion. 

NVT Raises Full-Year Growth OutlookExecutive vice president and CFO Gary Corona raised 2026 reported sales growth guidance to 37% to 39% from 26% to 28%. Organic growth is now expected at 32% to 34%, compared with 21% to 23% forecasted previously.

Corona also lifted adjusted EPS guidance to $5-$5.10 from $4.45-$4.55. At the midpoint, adjusted EPS would rise 50% from 2025, reflecting stronger sales assumptions and operating execution.

For the third quarter, Corona guided to reported and organic sales growth of 32% to 35% and adjusted EPS of $1.35-$1.38. He said the outlook includes continued investment in data centers and power utilities.

nVent Expands Liquid Cooling CapacityChair and CEO Beth Wozniak said data center growth remained broad across liquid cooling, cable management and engineered buildings, with demand spanning hyperscalers, neo-clouds, multi-tenant operators and distribution partners.

Wozniak announced a third Minnesota liquid cooling facility, Blaine 2, expected to open in the first half of 2027. She said the expansion should extend capacity through 2027 and into 2028.

Wozniak expects nVent’s total data center sales to exceed $2 billion in 2026, more than double last year. The existing Blaine facility is still ramping, while a modular liquid cooling platform is scheduled to launch this fall.

NVT Sees Demand Broaden Beyond Data CentersWozniak said organic orders grew low double digits in the quarter, while backlog remained healthy at $2.5 billion. She also noted strong data center orders early in the third quarter despite normal lumpiness in large bookings.

In response to an RBC Capital Markets analyst, Wozniak described the short-cycle improvement as broad-based order growth through distribution rather than a one-time benefit.

A Melius analyst pressed on distributor inventory. Wozniak said sell-in and sell-through were well balanced, supporting management’s view that the improvement reflected underlying demand rather than channel restocking.

nVent Balances Growth With Margin InvestmentCorona said adjusted return on sales reached 21.9%, up 110 basis points year over year. Price and productivity offset more than $50 million of inflation, including more than $30 million of tariff impact.

The company now expects about $100 million of tariff impact for 2026, up from $80 million because of higher volume. Management still expects pricing, supply-chain productivity and operating actions to offset inflation, including tariffs.

Electrical Connections remained a margin watchpoint. Corona said its 27.3% return on sales improved sequentially and should continue rising as pricing takes hold, with management expecting the segment in the high-20% range this year.

NVT Q&A Tests Backlog and Long-Term VisibilityAnalysts from Vertical Research, Goldman Sachs and Deutsche Bank focused on whether backlog and capacity could sustain growth. Wozniak said nVent is deliberately working down backlog to maintain customer lead times.

She also said the company is being prudent with near-term guidance because two facilities are ramping simultaneously, requiring coordinated additions of labor, equipment and supplier capacity.

A William Blair analyst asked about growth beyond 2027. Wozniak said nVent has visibility several years out and is working with NVIDIA and other customers on product road maps extending through 2030, particularly around liquid cooling.

nVent Keeps Capital Focus on GrowthCorona said nVent still expects about $130 million of capital expenditures in 2026, up 40%, with most incremental spending directed toward data centers, power utilities and supply-chain resiliency.

Management closed the call emphasizing capacity expansion, product innovation and disciplined execution. With net leverage at 1.2 times and $600 million available on its revolver, Corona said the balance sheet retains flexibility for growth, acquisitions and shareholder returns.

NVT’s Zacks Signals Stay ConstructiveNVT carries a Zacks Rank #1 (Strong Buy). Its Growth Score and Momentum Score are both B, while the Value Score is D and the VGM Score is C, creating a stronger growth-and-momentum profile than the value profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

Under the Zacks Style Scores framework, A and B are the stronger grades, and top Zacks Rank stocks paired with favorable Style Scores can offer better near-term potential. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

A SpaceX Falcon 9 rocket carrying Starlink satellites leaves a trail above Pasadena, California. Mario Tama/Getty Images An analyst is throwing cold water on Starlink's ambition to become a mainstream mobile carrier.

In a recent earnings call, SpaceX President Gwynne Shotwell said she expected Starlink to provide better service than the Big Three wireless carriers — AT&T, Verizon, T-Mobile — by the end of 2027.

Benedict Evans, a former Andreessen Horowitz partner who spent decades studying mobile technology, however, said complications with providing service in urban areas would likely stymie such a plan.

"The hard part is having coverage in a city with steel and concrete blocking every signal past 50 yards," Evans wrote on Threads on Thursday. "That's the cost."

Starlink Mobile acts mostly as a satellite safety net for phone carriers. The company's satellites operate like cell towers in space, connecting phones when on-the-ground service is unavailable, including in remote areas or emergency situations.

The service has emerged as the most profitable revenue stream for Elon Musk's companies, netting them a cool $1.66 billion in Q2.

To expand Starlink's coverage beyond remote areas, Musk said on the earnings call that he expected Starlink to deploy "a large number of small stations" in lieu of large cellular base stations.

In his Threads post, Evans said the number of small stations Starlink would have to build would likely cut into the service's vital profitability.

"Can you save enough money from using satellite for rural and for backhaul on some (how many?) of your base stations to deliver a meaningful cost advantage," he said. "What's the algebra?"

Evans attached a graph in a separate Threads post on Friday, showing that most monthly internet traffic is generated from users in urban and suburban areas, where Starlink would have to either build new infrastructure or rent from existing companies.

Starlink did not immediately respond to a request for comment.

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Truman Dickerson is the Weekend News Fellow at Business Insider, based in New York City. He covers trending tech and business news. He previously reported for The Boston Globe's Express Desk. He graduated from Boston University, where he served as editor in chief of The Daily Free Press, BU's student-run newspaper.Contact him at [email protected]

Starlink Elon Musk SpaceX More

On July 29, Microsoft (MSFT +0.14%) delivered blowout financial results for the fourth quarter of its fiscal year 2026, which ended June 30. The company's cloud computing business was perhaps the biggest story. Microsoft Azure posted 43% year-over-year sales growth, compared to 40% in the previous quarter. The best part is that Microsoft's work in this area should be a meaningful tailwind over the medium term, and the company's CEO, Satya Nadella, gave investors several reasons why. Let's look into one thing he said and what it means for the company's future.

Image source: Microsoft Corporation.

Doubling down on custom chips Microsoft offers artificial intelligence (AI) services through its cloud business, including access to Large Language Models, such as those developed by OpenAI -- with which it has a close relationship -- as well as its own internally developed MAI family of LLMs. The company naturally needs significant computing power to run these models. To that end, it has historically relied on external suppliers, including Nvidia (NVDA +1.43%). The semiconductor specialist offers the best (in terms of peak raw performance) and most versatile hardware for training and running AI models.

However, in recent years, Microsoft has leaned more heavily on its custom AI chips, and that decision is having a meaningful impact on the company's cloud business. According to Nadella, running MAI models on its custom chips yields 40% better performance per watt. That means lower operating costs and, potentially, higher margins for the company's cloud segment, which is already its main growth driver. If Microsoft doubles down on custom AI chips, we can expect further efficiency gains, leading to stronger revenue and earnings growth over the medium term, assuming sustained demand for its cloud services.

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Thankfully, there is some evidence suggesting Microsoft still has plenty of growth runway in this market. For instance, it ended its fiscal year 2026 with a $678 billion cloud backlog, up 84% year over year. And as AI infrastructure spending continues to expand (with some analysts predicting it could hit $1 trillion within three years), the company should be one of the big winners, as it improves the economics of Microsoft Azure thanks to its custom AI chips. It's no wonder Microsoft's shares soared following its latest update, but the stock has still lagged broader equities this year. Microsoft is up 5% to date, as of writing, while the S&P 500 has climbed 12%. There is ample upside left ahead for Microsoft.

Profit from the Green Wave: Top Cannabis Stocks to WatchAurora Cannabis NASDAQ: ACB said shareholders approved all items presented at its annual general meeting, including setting the board size at five directors, electing the company’s nominees, reappointing Ernst & Young LLP as auditor, and approving its non-binding advisory vote on executive compensation.

The virtual-only meeting covered Aurora’s financial year ended March 31, 2026. Michael Singer, Aurora’s lead independent director and chairman of the meeting, said the company had received sufficient votes in favor of each proposal. Full voting results were expected to be filed on SEDAR following the meeting.

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The Cannabis Sector: Profitability Takes Center StageAccording to the preliminary attendance report, 146 shareholders voted by proxy, representing 16.64 million shares, while total shares represented at the meeting were reported at 61.96 million, or 26.86% of outstanding shares. Singer said the attendance satisfied the company’s quorum requirement.

Board and Auditor Matters Approved Shareholders approved management’s proposal to fix the number of directors at five for the coming year. The elected director nominees were Executive Chairman and Chief Executive Officer Miguel Martin, Singer, Chitwant Kohli, Norma Beauchamp, and Rajesh Uttamchandani.

Aurora Cannabis Earnings Reveal a Turning Tide for the StockThe company also reappointed Ernst & Young LLP, with offices in Vancouver, as its auditor for the ensuing year. In addition, shareholders approved Aurora’s “say-on-pay” resolution regarding executive compensation, which is an advisory and non-binding vote.

Prior to the votes, Singer tabled Aurora’s financial statements, auditor’s report and management discussion and analysis for the year ended March 31, 2026. He noted the filings were available through SEDAR.

Fiscal 2026 Results Exceeded Outlook, CEO Says In remarks following the formal business, Martin described fiscal 2026 as a strong year for the cannabis company, citing revenue above its outlook and adjusted EBITDA above the midpoint of its guided range.

Aurora reported net revenue of C$321 million for fiscal 2026, an 11% increase from the prior year. Martin said the result exceeded the high end of the company’s guidance range by C$8 million and was driven by double-digit growth in global medical cannabis. About 55% of net revenue was generated outside Canada, he said.

Adjusted gross margin rose to 64%. Adjusted EBITDA increased 32% year over year to C$54 million. Adjusted net income improved by more than C$12 million. Aurora ended the fiscal year with C$165 million in cash and cash equivalents and no debt. Martin attributed the performance to Aurora’s focus on medical cannabis markets and financial discipline. He said the company holds leadership positions in Canada, Germany, Australia and Poland, which he characterized as the four largest nationally legal medical cannabis markets.

The CEO said Aurora’s GMP-certified production and supply capabilities allow it to serve international medical markets, including Europe and Australia. He also cited higher yields, improved potency and operational efficiencies as contributors to lower production costs.

International Expansion and Fiscal 2027 Priorities Looking ahead, Martin said fiscal 2027 will be affected by changes in Canadian medical cannabis and Aurora’s planned exit from the lower-margin Canadian consumer business. He said international growth is expected to partially offset these developments.

Aurora plans to make targeted investments in market-share gains, GMP capacity, margin-accretive opportunities and international expansion. Martin highlighted the company’s acquisition of Safari Flower Company, an EU GMP-certified cannabis cultivator and manufacturer, as part of that strategy.

According to Martin, Safari Flower added EU GMP capacity, strengthened Aurora’s export position and was accretive to adjusted EBITDA in the first quarter of fiscal 2027.

For the fiscal first quarter, Aurora reported net revenue of C$67.6 million. International medical cannabis net revenue rose 17% to C$43 million, while consolidated adjusted gross margin was 58%, at the high end of the company’s annual guidance range, Martin said.

Martin said Aurora expects second-quarter revenue and adjusted EBITDA to be sequentially higher than the first quarter. The company remains focused on sustained double-digit revenue growth, strong margins and increased EBITDA contributions over time, he said.

Germany, Poland Seen as Key Growth Markets International growth is expected to be led by Germany, Aurora’s largest and fastest-growing international market, according to Martin. He said the company continues to hold a leading market share in Germany and is benefiting from demand for premium and core medical cannabis products.

Martin also pointed to Poland, where Aurora holds the No. 1 market-share position, citing recent import-limit increases, patient demand and commercial execution. Australia and New Zealand remain markets where the company sees opportunities to broaden product formats and expand its mix of core and premium products.

Beyond those markets, Martin cited the U.K., France, Ukraine, Switzerland, Spain and Austria as emerging regulated markets where Aurora believes its EU GMP capacity, regulatory expertise, genetics and integrated supply chain could support long-term growth.

About Aurora Cannabis (NASDAQ:ACB)Aurora Cannabis Inc NASDAQ: ACB is a Canadian licensed producer of medical and consumer cannabis products headquartered in Edmonton, Alberta. Established in 2013, the company operates under Health Canada's regulations to cultivate, process and distribute a range of cannabis-based offerings. Since its initial public listing in 2017, Aurora has grown into one of the country's largest growers by cultivation capacity and production output.

The company's core business spans the cultivation of dried flower, the extraction of cannabis oils and the development of value-added products such as softgels, capsules and topical treatments.

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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With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

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Key Takeaways ExxonMobil generated $23.6B of operating cash flow despite Middle East disruptions cutting output about 10%.XOM says Guyana recovered $55B of investment and costs, marking an inflection toward higher free cash flow.ExxonMobil's Permian output topped 1.8M oil-equivalent barrels per day as structural savings hit $16.3B. ExxonMobil Holdings Corporation (XOM - Free Report) used its second-quarter 2026 earnings call to stress portfolio resilience through Middle East disruption and stronger downstream margins. Management centered its message on Guyana cash flow, Permian growth and structural cost savings.

Adjusted EPS of $3.52 missed the Zacks Consensus Estimate of $3.68. Revenues of $116.01 billion topped the $Zacks Consensus Estimate of 95.80 billion. 

ExxonMobil Frames Disruption as an Execution TestChairman and CEO Darren Woods said temporary Middle East disruptions reduced upstream production by about 10%, yet ExxonMobil generated $14.5 billion of earnings and $23.6 billion of operating cash flow.

Woods said the integrated portfolio helped keep facilities running and avoid roughly $750 million of annual disruption costs through modeling, fleet reallocations, reformulation and alternate supply.

The company also generated $17.2 billion of free cash flow and returned $9.4 billion to its shareholders through dividends and share repurchases.

XOM Sees a Guyana Cash Flow InflectionWoods said Guyana recovered invested capital and operating costs nearly two years earlier than expected. Gross production reached roughly 900,000 barrels per day in the quarter.

Senior vice president and CFO Neil Hansen told a Wolfe Research analyst that the project has fully recovered $55 billion of investment and costs. Hansen characterized the production-entitlement change as an inflection toward higher free cash flow.

Woods said ExxonMobil is evaluating a ninth FPSO and sees four new exploration prospects identified with AI tools. The fifth FPSO remains on track to start production by year-end.

ExxonMobil Expects Refining Tightness to PersistWoods told a Goldman Sachs analyst that he expects a robust refining market as regional disruptions, lower Chinese exports and Russian refinery outages constrain available capacity.

Management stated that ExxonMobil has high-graded its refining portfolio toward lower supply costs and higher-value products. The company reported record second-quarter diesel production, while U.S. Gulf Coast refinery reliability exceeded 95%.

Hansen added Energy Products has grown from about 9% to roughly 23% of business-line earnings over five years, reflecting refining investments, portfolio high-grading and stronger trading capability.

XOM Pushes Permian Technology at ScaleWoods said Permian production exceeded 1.8 million oil-equivalent barrels per day, another record. He added that more than 40 technology developments are aimed at improving recovery and capital efficiency.

Hansen highlighted 83 four-mile wells drilled year to date and about 1,200 producing wells of at least three miles since 2020.

Woods told a Morgan Stanley analyst that successful technologies can be combined to improve recovery while reducing the number of wells required.

ExxonMobil Extends Structural Cost SavingsWoods said cumulative structural cost savings have reached $16.3 billion since 2019, supported by centralized organizations and tighter value-chain accountability.

Management also added that said ExxonMobil combined upstream operations with its global operations organization on July 1, creating a roughly 31,000-person group across more than 150 sites in 48 countries. Larger process and data platform rollouts are planned for 2027.

Hansen told a Wells Fargo analyst that ExxonMobil still targets $20 billion of cumulative structural savings by 2030. He said annualized 2026 cash operating expenses would be roughly even with 2019 despite inflation and growth.

XOM Keeps Focus on Value and Financial FlexibilityWoods closed with a value-over-volume posture focused on advantaged investments, integration, technology and resilience through disruption.

Hansen and Woods kept execution tied to reliable production, higher-value products, lower structural costs and disciplined shareholder returns.

ExxonMobil’s Zacks Signals Pair Strength With Hold RankXOM carries a Zacks Rank #3 (Hold). Its Value Score and Growth Score are A, Momentum Score is B and VGM Score is A, producing broadly favorable Style Scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Under the Zacks Style Scores framework, A and B are the stronger grades, while the Zacks Rank reflects earnings-estimate revision trends over one to three months. The Zacks Rank can change as analysts revise estimates after the just-reported results.

Key Takeaways Cincinnati Financial is expanding Commercial Lines through disciplined pricing and risk selection. E&S, Personal Lines and agency expansion are diversifying earnings and supporting profitable premium growth. Higher investment yields and 65 straight years of dividend hikes strengthen the long-term shareholder case. Cincinnati Financial Corporation (CINF - Free Report) shares have risen 19.2% in the past year, outperforming the industry and the Finance sector’s growth of 11.4% and 16%, respectively.

Cincinnati Financial has outperformed its peers, including Arch Capital Group Ltd. (ACGL - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) , in the past year. Shares of ACGL, WRB and PLMR have gained 11.7%, 2.1% and 13.6%, respectively, in the said time frame.

Image Source: Zacks Investment Research

With a market capitalization of $27.47 billion, the average volume of shares traded in the last three months was 0.8 million.

CINF Trading Above 50-Day and 200-Day Moving AveragesShares of Cincinnati Financial closed at $179.04 on Thursday and are trading above the 50-day and 200-day simple moving averages (SMA) of $174.86 and $165.82, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

CINF’s Growth Projection EncouragesThe Zacks Consensus Estimate for Cincinnati Financial’s 2026 earnings per share indicates a year-over-year increase of 7%. The estimate for 2026 revenues is pegged at $12.02 billion, implying a year-over-year improvement of 7.4%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.1% and 7.2%, respectively, from the corresponding 2026 estimates.

CINF beat earnings estimates in three of the last four quarters and missed in one, with an average surprise of 11.7%.

Average Target Price for CINF Suggests UpsideBased on short-term price targets offered by six analysts, the Zacks average price target is $190.83 per share. The average suggests a potential 6.5% upside from the last closing price.

CINF’s Higher Return on CapitalReturn on equity in the trailing 12 months was 9.6%, better than the industry average of 7.4%. This highlights the company’s efficiency in utilizing shareholders’ funds.

Factors Acting in Favor of CINFCincinnati Financial’s Commercial Lines Insurance segment has been consistently witnessing growth over the past several quarters, led by disciplined pricing, policy-level risk selection and strong independent agency relationships. The company continues to leverage its agency-centric model to expand Commercial Lines through deeper agency relationships, expand its product offerings and drive profitable premium growth. Its disciplined underwriting approach and focus on risk selection should continue to support Commercial Lines' profitability despite a moderating pricing environment.

Cincinnati Financial continues to strengthen its diversified insurance platform through pricing discipline and targeted growth initiatives. Management expects property and casualty underwriting results to benefit from continued price increases and the expansion of Cincinnati Re and Cincinnati Global, which enhance pricing precision, broaden product offerings and improve income stability.

The Excess & Surplus (E&S) business continues to benefit from strong new business, favorable renewal pricing and product expansion. Meanwhile, Personal Lines remains a key growth driver, which is supported by the Cincinnati Private Client business, higher renewal pricing and geographic diversification. These businesses diversify earnings, reduce volatility and support long-term profitable growth.
Net investment income continues to be driven by higher reinvestment yields, growth in fixed-income investments and robust operating cash flows. Backed by a large, high-quality investment portfolio, these factors continue to provide a meaningful earnings tailwind alongside underwriting operations.

Cincinnati Financial’s expansion strategy is driven by its exclusive partnerships with local, independent insurance agencies. This relationship-based model fosters strong customer loyalty, high retention rates and consistent business growth. As the insurer expands its agency network into underserved markets, it remains well-positioned to drive sustainable premium growth, deepen market penetration and create long-term shareholder value.

Cincinnati Financial has returned capital to its shareholders through share buybacks, dividend hikes and special dividends. It has an excellent track record of raising dividends for 65 straight years. Its dividend yield of 2% is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors.

Risks for CINF StockCincinnati Financial’s results remain sensitive to catastrophe activity, particularly in property lines, and severity can vary sharply by period. Although reinsurance provides protection, elevated catastrophe losses could pressure underwriting margins.

Management continues to emphasize risk selection and segmentation, but rising loss costs, social inflation, larger jury awards and increasing claim severity could pressure profitability despite conservative reserves.

ConclusionStrong performance at the Commercial Lines segment, pricing discipline, agent-focused business models, higher investment income, consistent cash flow and prudent capital deployment support growth. However, exposure to catastrophe losses and loss-cost trends, including social inflation, remains a risk.

Higher return on equity, favorable growth estimates and an impressive dividend history should continue to benefit Cincinnati Financial over the long term. Given the premium valuation, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oracle Corp (NYSE:ORCL, XETRA:ORC)'s price target was cut to $245 from $285 by UBS, which maintained its 'Buy' rating on the stock while citing risks around rising AI infrastructure spending, returns on invested capital, credit markets and Oracle’s exposure to OpenAI.

The analysts wrote that Oracle shares have fallen 27% since the company’s fiscal fourth-quarter results, with investors focusing on several perceived risks despite strong revenue growth and guidance. These include rising AI infrastructure capital expenditures, uncertainty around returns on invested capital, signs of tightness in credit markets for new large AI data center debt offerings, delays at a key site under construction in New Mexico and Oracle’s high customer concentration with OpenAI.

UBS said material risk is already priced into Oracle shares and that some concerns, including those surrounding the New Mexico project, could be overstated.

The analysts highlighted an industry check with good visibility into Oracle’s Project Jupiter construction project in New Mexico. The check put a 90% chance on the project proceeding, with some delay and higher costs, while noting that the first 200 megawatts is powered off the grid and is secure.

On credit markets, UBS wrote that investors are pricing in more risk as Oracle will likely need to issue additional debt in calendar 2027. The analysts pointed to wider spreads on peer group deals and wider credit default swap spreads, but noted that recent hyperscaler debt offerings had eased concerns. UBS also cited KKR’s view that there is some “indigestion” in the credit markets, while they remain open.

The analysts also see potential upside to Oracle’s fiscal 2027 revenue and earnings guidance. They noted that investors reacted negatively to the company effectively reaffirming rather than raising its guidance on its latest call, but questioned whether there could be upside from material AI capacity coming online, coupled with what they described as CFO conservatism in the previous quarter.

UBS said further multiple expansion would require an improved narrative around several lingering concerns, including Oracle’s high OpenAI exposure and the potential impact of changes in the AI model market on OpenAI’s spending with Oracle.

The analysts also said investors need greater comfort with returns on AI capital expenditures, including Oracle’s ability to “move up the stack” from offering core GPU access. Competition is another consideration, with SpaceX, Meta and OpenAI itself among the companies selling or consuming AI compute, UBS wrote.

Oracle shares have re-rated by 25% since Microsoft’s results last week, according to UBS. The analysts said further multiple expansion would likely depend on greater clarity around these concerns.

UBS values Oracle shares at 11 times estimated calendar 2028 non-GAAP earnings and 16 times estimated calendar 2027 non-GAAP earnings. The new $245 price target is based on a target multiple of 19 times calendar 2028 estimated non-GAAP earnings, down from 28 times calendar 2027 estimated non-GAAP earnings previously.

UBS wrote that the 19-times multiple is a slight premium to the peer group and is reasonable given that Oracle’s revenue growth should soon be above 30%.

Shares of Oracle traded up 1.5% at about $145 on Friday afternoon.

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Airbnb shares surged 15% Friday after the company delivered one of its strongest growth quarters in years and raised its full-year outlook — a turnaround CEO Brian Chesky is directly crediting to artificial intelligence.

In an exclusive interview with CNBC after the earnings report, Chesky said Airbnb will spend "a lot more" on AI tokens this year than it originally forecast because the cost of inference "pales in comparison" to the revenue and productivity the company is getting back.

Airbnb is cutting product-development time by roughly 60%, shipping about 80% more features year over year and keeping headcount roughly flat even as AI spending rises sharply, Chesky said.

"I think now it's safe to say AI is the best thing to have happened to Airbnb," he said. "I think we're becoming an AI-native company, and I think that is probably the number one explanation for our results."

That conviction marks a sharp turn for Chesky. A year ago, Chesky said the question inside the company was essentially, "Is AI good for Airbnb or is AI bad for Airbnb?"

The shift is notable for a CEO who has long approached technology more like a designer than a traditional engineer.

Chesky went to the Rhode Island School of Design and studied industrial design before co-founding Airbnb. Years later, he would become close with former Apple design chief Jony Ive and OpenAI CEO Sam Altman — and eventually introduce the two men, helping spark the relationship that led to their work together on AI hardware.

Now, Chesky is trying to bring that same design-first sensibility to Airbnb's own AI overhaul.

Read more CNBC tech news'AI Kill Switch' bill needs to be passed this year amid ongoing rogue agent hacks, Rep. Lieu saysSpaceX stock could face further pressure as first batch of shares unlock since IPOGoogle is expanding its AI empire — and losing the people who built itHadrian valued at nearly $8 billion after fresh funding as money pours into defense techThe company hired Ahmad Al-Dahle, Meta's former head of generative AI and a leader of its Llama work, as chief technology officer in January. Chesky said Airbnb had been "maybe middle of the pack in AI" before Al-Dahle arrived with a mandate to help make the company "AI-native."

There are already measurable signs of that shift. Chesky said AI is helping Airbnb attract more bookings, make it easier for hosts to list and price homes, and lower customer-service costs.

The company is piloting AI-powered search, using AI to generate personalized listing highlights and answers for guests, and helping hosts create and price listings. In customer service, 45% of guests who interact with Airbnb's AI agent never need to speak with a human agent.

"It's really across the board: More demand, more supply, cheaper customer service," Chesky said.

Internally, Airbnb is also closely tracking how employees use AI. Chesky said the company looks at individual token usage as one measure of adoption, but considers that a relatively crude metric and focuses more heavily on the output of teams.

"What we're seeing is that across the board, teams are significantly more productive," Chesky said. He said those gains began with engineers and have since spread to product management, design, marketing, and creative services. "I have so underestimated the impact of AI."

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That productivity is showing up in Airbnb's hiring plans as well. Headcount is roughly flat year to date, even as spending on AI rises sharply, and Chesky said investors should expect revenue to grow "a lot faster" than staffing for the foreseeable future.

"Our philosophy has been not necessarily to use AI to have fewer people, but to use AI to get more out of the people," Chesky said. He added that revenue per employee should continue to rise.

The economics are central to Chesky's increasingly bullish view of AI. While many consumer companies are still trying to figure out how to generate enough revenue to justify inference costs, he argues Airbnb has an unusually favorable model.

"One of the problems is a lot of people feel like they don't know how to make money on consumer with AI," Chesky said.

At Airbnb, he said, inference costs pale in comparison with "the amount of money we make on every booking" and the additional revenue generated by faster product development.

"We are going to spend a lot more on AI tokens this year than we forecasted," he said. "But that's great because the ROI is there, and therefore our revenue is much higher."

Airbnb is still trying to be selective about where it spends those tokens and the company is using more than a dozen AI models internally, Chesky said. Those include models like Anthropic's Claude Code and OpenAI's Codex. But it limits access to some slower and more expensive models when their additional capability is not necessary for the task.

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Chesky is particularly bullish on open-source models for consumer-facing products and said frontier models remain important for the hardest problems, but most consumer tasks do not require the most expensive systems.

"Consumers mostly do not need frontier models for most things," Chesky said. "It's a matter of throttling the right job for the right tool."

He declined to name the open-source models Airbnb is deploying in consumer products, saying the makeup of the company's technology stack is becoming competitively sensitive.

The bigger question is whether AI ultimately becomes more than a tool inside Airbnb — and instead changes how travelers reach the platform in the first place. As AI agents become better at assembling itineraries and acting on behalf of users, companies like OpenAI and Alphabet could theoretically become the interface through which travelers discover and book accommodations.

But Chesky is skeptical that chatbots will replace Airbnb as the transaction layer.

Travel is visual, difficult to compare through text alone and often planned collaboratively, he said, all areas where the traditional chatbot interface remains weak.

"I do not believe the chat interface is the right interface for travel," Chesky said.

He expects chatbots to become important for inspiration and itinerary building, but said he does not see them becoming major booking platforms "in the coming future."

For now, Chesky said he is focused on using AI to extend Airbnb's own growth runway. He told CNBC that first-time bookers are growing at the fastest pace in four years and said the U.S. business accelerated from the first quarter. Hotels, meanwhile, are growing three times faster than the company's traditional home listings as Airbnb expands beyond the home-rental marketplace it built its name on.

"We are not a company whose best days were in the 2010s," Chesky said. "We are a company where the best days are in front of us."

Airbnb stock chart

Key Takeaways Unity's Vector grew 23% sequentially in Q2 and topped a $1 billion annual run rate ahead of schedule.Unity expects Q3 adjusted EBITDA of $185M-$190M, implying a 33% margin and a sixth straight expansion.Unity 7 beta is due in Q4 2026, linking coding agents with Vector, commerce and live operations. Unity Software Inc. (U - Free Report) centered its second-quarter 2026 earnings call on accelerating Vector artificial intelligence (AI) performance, tighter links between Create and Grow, and a more profitable operating model. Management also raised near-term profitability expectations while simplifying the portfolio.

Revenues of $546.5 million topped the Zacks Consensus Estimate of $511.8 million, while adjusted earnings of $0.28 per share exceeded the $0.24 consensus estimate. Strategic revenues increased 38% year over year.

U Sees Vector AI Growth AcceleratePresident and chief executive officer Matt Bromberg said Vector grew 23% sequentially in the second quarter, nearly twice management’s prior expectation of 12% to 13%. The product also moved above a $1 billion annual run rate, two quarters earlier than expected.

Strategic Grow revenues reached $329 million, up 63% year over year. Bromberg attributed the acceleration to product enhancements, better data and model improvements that are raising advertising returns for customers.

For the third quarter, chief financial officer Jarrod Yahes said Unity expects Vector to grow 19% to 21% sequentially. Strategic Grow revenues are projected at $380 million to $385 million, representing 68% to 70% year-over-year growth.

Unity Links Create and Grow More TightlyBromberg said Unity increasingly views Create and Grow as parts of one platform rather than separate businesses. More game creation drives platform usage, while more games increase the need for discovery and advertising.

Unity 7 is central to that strategy. Bromberg said the release will let developers and coding agents work together across development while automatically configuring services including Vector, commerce and live operations.

The Unity 7 beta is scheduled for the fourth quarter of 2026, with a full release planned for the first quarter of 2027. Bromberg also highlighted a multiyear partnership supporting Netflix’s multiplatform games ecosystem.

U Raises the Margin BarYahes said adjusted EBITDA was $160 million in the second quarter, with a 29% margin, as revenue growth and cost discipline produced operating leverage. Adjusted EBITDA increased 77% year over year.

Third-quarter adjusted EBITDA is expected at $185 million to $190 million, implying a 33% margin. Yahes said that would mark a sixth consecutive quarter of adjusted EBITDA margin expansion.

Unity also pulled forward its target for GAAP net income profitability to the third quarter of 2026 from the fourth quarter. Yahes tied the improvement to operating leverage and lower costs following portfolio actions.

Unity Sharpens Its Portfolio and Balance SheetYahes said Unity completed the ironSource Ads Network shutdown and sold Supersonic to Tripledot Studios on Aug. 4. Management expects those actions to support margins in the second half.

Free cash flow reached $202 million, up 59% year over year. Cash increased to $2.36 billion, and Yahes said Unity moved from a net debt position to a net cash position.

Near-term capital priorities are focused on deleveraging. Yahes said Unity expects to repay its 2026 convertible notes in November, while stronger cash generation should expand capital allocation flexibility.

U Q&A Highlights Runtime and Unity 7A Morgan Stanley analyst asked how much runtime data contributed to Vector’s improvement. Bromberg said runtime signals were introduced near quarter-end and remain too early to isolate, but management views the data as a long-term advantage.

A Cannonball Research analyst asked how Unity 7 differs from prior releases. Bromberg described a broader change than an engine upgrade, emphasizing coding-agent collaboration, faster workflows and compatibility with Unity 6 projects.

A Goldman Sachs analyst pressed management on long-term margins. Yahes pointed to adjusted gross margins around 82% to 83% and said Unity sees further margin expansion while funding high-return product investments.

Unity Enters the Second Half More FocusedManagement’s message centered on sustaining Vector’s growth while using Unity 7 and AI tools to deepen engagement across the platform. Bromberg emphasized product velocity, runtime data and tighter integration between creation, monetization and live services.

Yahes stressed cost control, portfolio simplification and balance-sheet improvement. Third-quarter strategic revenue guidance of $540 million to $550 million calls for 44% to 47% year-over-year growth.

Zacks Signals Favor GrowthU carries a Zacks Rank #2 (Buy). Its Growth Score of A and VGM Score of B align favorably with Zacks methodology, which emphasizes A or B Style Scores alongside a top Zacks Rank.

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

The Value Score of F is comparatively weak, while the Momentum Score of C is middle of the range. The current Zacks Rank can change as earnings estimates are revised following the just-reported results.

Key Takeaways Abbott's Diagnostics sales rose 42.3% reported and 2.9% comparable in Q2 2026, led by routine testing.Cancer Diagnostics sales grew 13.3%, driven by Cologuard, precision oncology and international operations. ABT expects faster Cancer Diagnostics growth in the second half on screenings and newer tests. Abbott Laboratories’ (ABT - Free Report) Diagnostics business manufactures and markets diagnostic systems and tests. The segment is transitioning from a pandemic-driven profile to a broader portfolio supported by routine testing and oncology.

In the second quarter of 2026, Diagnostics sales increased 42.3% on a reported basis and 2.9% on a comparable basis. Core Laboratory sales grew 3.2% on a comparable basis, including 7.5% growth in the United States. Testing demand remained resilient across hospitals and other laboratories. Rapid and Molecular Diagnostics sales declined 8% as respiratory testing normalized. However, the company expects easier comparisons in China and sustained demand outside China to support an improved growth trajectory in the second half.

Following the March 2026 acquisition of Exact Sciences, Diagnostics now includes the Cancer Diagnostics business. Cancer Diagnostics sales grew 13.3%, driven by mid-teens growth in Cologuard and a colorectal cancer screening test, along with contributions from precision oncology and international operations. Abbott expects Cancer Diagnostics’ growth to accelerate in the second half. This growth is expected to benefit from care gap programs, repeat screenings, newer tests and increased international adoption. 

Peer UpdateDanaher Corporation (DHR - Free Report) Diagnostics segment continued to perform strong in the second quarter, with core revenues increasing 2% year over year. Clinical diagnostics revenues grew at a mid-single-digit rate, supported by solid performance at Beckman Coulter Diagnostics and high-single-digit growth at Leica Biosystems and Radiometer. Cepheid’s non-respiratory revenues increased at a low-double-digit rate, driven by strength in hospital-acquired infection and sexual-health assays, while lower seasonal infection rates continued to pressure respiratory testing revenues. In China, declines at Beckman began to moderate as pricing stabilized and volumes improved, easing some of the pressure from volume-based procurement and reimbursement changes. 

QuidelOrtho Corporation (QDEL - Free Report) continues to benefit from its focus on the diagnostics business, supported by healthy growth across several key areas during the second quarter. Labs revenues increased 4% as reported driven by strength in the core business, although slower sales in China related to changes in In Vitro Diagnostics pricing partially offset growth. Immunohematology revenues increased 1% with growth improving to 5% outside China. Meanwhile, Point of Care remained a notable growth driver, with revenues advancing 16%, including a 10% increase in Triage revenues, highlighting solid momentum across the company’s diagnostics portfolio.

ABT Price PerformanceIn the past year, Abbott shares have plunged 19.6% compared with the industry’s 25.9% decline. 

Image Source: Zacks Investment Research

Expensive ValuationABT currently trades at a forward 12-month Price-to-Sales (P/S) of 3.54X compared with the industry median of 2.81X.

Image Source: Zacks Investment Research

ABT Stock Estimate TrendIn the past 30 days, ABT’s EPS estimate for 2026 has moved north 0.2%.

Image Source: Zacks Investment Research

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

Company brings enhanced artificial intelligence, data analytics and cyber capabilities to strengthen U.S. national security and defend the homeland

, /PRNewswire/ -- General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today that it was awarded the Enterprise Network Operations and Cybersecurity Support (ENOCS) contract to deliver comprehensive enterprise IT and cybersecurity services for the Army National Guard and other federal government partners. The new $1.3 billion contract, awarded by the General Services Administration (GSA) Assisted Acquisition Services, has a one-year base period and six one-year option periods.

The company will also operate, modernize, integrate and defend the Guard’s classified and unclassified networks, further strengthening its cyber posture. Through this contract, GDIT will support the Guard and other federal government partners to upgrade and build new enterprise IT environments that support mission needs. GDIT will provide integrated IT services, including standing up new operations centers, workforce support, technology provisioning and on‑site services. The company will also operate, modernize, integrate and defend the Guard's classified and unclassified networks, further strengthening its cyber posture. In addition, GDIT will apply advanced artificial intelligence, data analytics and communication capabilities to enhance mission execution. Together, these capabilities will create a more agile and resilient enterprise environment – streamlining  operations, enabling faster access to IT services, improving security and elevating service quality for the Guard and its partners.

"The Army National Guard depends on resilient, modern networks to support communities and government partners and safeguard the nation," said Brian Sheridan, GDIT senior vice president for Defense. "We look forward to bringing the full strength of GDIT's digital modernization, AI and cyber capabilities to enhance the mission readiness of the Guard and its partners."

The award builds on GDIT's partnership with the Army National Guard and a broad portfolio of Army-wide support, including delivering enterprise mission IT services for U.S. Army Europe, global integrated base defense sustainment support, flight school training and mission training complex support.

GDIT is a business unit of General Dynamics, a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information about General Dynamics Information Technology is available at www.gdit.com.   More information about General Dynamics is available at www.gd.com.

SOURCE General Dynamics Information Technology

Key Takeaways Tyson shares fell 12.2% in 12 weeks as Beef losses widened and fiscal 2026 outlook deteriorated.TSN now sees adjusted Beef operating loss of $500M-$650M as cattle costs and tight supplies weigh.Tyson's Chicken profit rose to $488M, while nine-month free cash flow reached $913M. Shares of Tyson Foods, Inc. (TSN - Free Report) have fallen 12.2% over the past 12 weeks, putting the durability of its earnings recovery under scrutiny. The key issue is whether strength in Chicken and Prepared Foods can offset worsening Beef economics enough to steady investor sentiment.

Tyson’s diversified portfolio is still producing meaningful cash flow, but the widening Beef loss and weaker estimate trends keep the near-term setup challenging.

Tyson’s Beef Losses Keep DeepeningBeef sales fell to $5.39 billion in the fiscal third quarter as volume declined 15.9%, while average price increased 12.1%. Adjusted segment operating loss widened to $138 million from $116 million a year earlier.

For the first nine months of fiscal 2026, adjusted Beef operating loss reached $483 million, compared with $223 million a year earlier. Tyson said network optimization benefits were more than offset by USDA margin compression and higher cattle costs.

TSN Faces a Tougher Beef OutlookTyson now expects a fiscal 2026 adjusted Beef operating loss of $500 million to $650 million, worse than its prior outlook of $350 million to $500 million. Tight cattle supplies and elevated cattle costs remain the main constraints on throughput and profitability.

Management said the phased reopening of the Mexican border could improve cattle availability over time, but it is not expected to materially benefit fiscal 2026. The company also cautioned that the reopening will not fully close the Beef profitability gap even in fiscal 2027.

Tyson’s Chicken Business Provides a CounterweightChicken sales increased to $4.26 billion in the fiscal third quarter, while adjusted segment operating income rose to $488 million from $448 million. Adjusted margin expanded 60 basis points to 11.2%, and retail and foodservice volume increased 3.8%.

Tyson maintained fiscal 2026 adjusted Chicken operating income guidance of $1.9 billion to $2.05 billion. Pilgrim’s Pride Corporation (PPC - Free Report) , another major protein processor, operates chicken processing and prepared-foods facilities across the United States and international markets, making it a relevant industry reference for Tyson’s poultry exposure.

TSN Still Has Financial BuffersOperating cash flow totaled $1.47 billion through the first nine months of fiscal 2026, while capital expenditures of $556 million left free cash flow at $913 million. Tyson ended the quarter with $4 billion of liquidity and net leverage of 2.1 times.

Total debt declined by $824 million from fiscal 2025, and management expects fiscal 2026 free cash flow of $1.3 billion to $1.7 billion. Hormel Foods Corporation (HRL - Free Report) , a global branded food company with a portfolio spanning meat and snacking categories, provides another useful reference point for Tyson’s branded Prepared Foods exposure.

Image Source: Zacks Investment Research

Tyson’s Signals Still Call for CautionThe balance of evidence remains mixed. Chicken, Prepared Foods and cash generation offer support, but Beef losses are still widening and the company’s fiscal 2026 Beef outlook has deteriorated.

TSN currently carries a Zacks Rank #5 (Strong Sell), despite a VGM Score of A, Value Score of B, Growth Score of B and Momentum Score of C. The favorable Value, Growth and VGM Scores point to attractive underlying style characteristics, 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.

The Zacks Consensus Estimate for fiscal 2026 earnings is $3.95 per share and has moved 2.6% lower over the past four weeks. That negative revision trend, together with the #5 Rank, supports a cautious near-term view even after the recent share-price decline.

PubMatic, Inc. (PUBM) Q2 2026 Earnings Call August 6, 2026 4:30 PM EDT

Company Participants

Rajeev Goel - Co-Founder, CEO & Director
Steven Pantelick - Chief Financial Officer

Conference Call Participants

Stacie Clements - The Blueshirt Group, LLC
Shweta Khajuria - Wolfe Research, LLC
Robert Coolbrith - Evercore ISI Institutional Equities, Research Division
Naved Khan - B. Riley Securities, Inc., Research Division
Eric Martinuzzi - Lake Street Capital Markets, LLC, Research Division
James Heaney - Jefferies LLC, Research Division
Barton Crockett - Rosenblatt Securities Inc., Research Division
Simran Biswal - RBC Capital Markets, Research Division

Presentation

Operator

Hello, everyone, and welcome to PubMatic Second Quarter 2026 Earnings Call. My name is Annabeth, and I will be your Zoom operator today. Thank you for your attendance today. As a reminder, this webinar is being recorded.

I will now turn the call over to Stacie Clements.

Stacie Clements
The Blueshirt Group, LLC

Good afternoon, everyone, and welcome to PubMatic's earnings call for the second quarter of 2026. This is Stacie Clements, and I'll be your operator today. Joining me on the call are Rajeev Goel, Co-Founder and CEO; and Steve Pantelick, CFO.

Before we get started, I have a few housekeeping items. Today's prepared remarks have been recorded, after which Rajeev and Steve will host live Q&A. [Operator Instructions] A copy of our press release can be found on our website at investors.pubmatic.com.

I would like to remind participants that during this call, management will make forward-looking statements, including, without limitation, statements regarding our future performance, market opportunity, growth strategy and financial outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, macroeconomic environment and future conditions. These forward-looking statements are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. You can find more information about these risks and uncertainties in our reports filed with the Securities and Exchange Commission

By PYMNTS  |  August 7, 2026

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Highlights

More than 600,000 DraftKings customers have used its predictions product, while annualized trading volume rose from $2.3 billion to $11 billion between April and July.

DraftKings sees only about 1% customer overlap with the largest prediction market operator in sportsbook states and estimated 80% to 90% of prediction volume there comes from professional or institutional-style traders.

The company now controls brokerage, exchange and market-making capabilities, giving it a path to capture more fees, improve customer lifetime value and replicate the vertical-integration strategy that strengthened its sportsbook business.

DraftKings is positioning itself not simply as a sportsbook operator, but as a nationwide sports commerce platform capable of acquiring, engaging and monetizing customers across multiple products.

As company executives stressed to investors during a second-quarter 2026 earnings call Friday (Aug. 7), prediction markets are becoming central to that ambition.

“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users and engagement,” DraftKings Co-Founder and CEO Jason Robins said in a Friday press release. “Our super app is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category.”

DraftKings generated $115 million in adjusted EBITDA for the second quarter, while customer-friendly sports outcomes created an approximately $80 million revenue headwind. Management nevertheless maintained its full-year revenue guidance of $6.5 billion to $6.9 billion and adjusted EBITDA guidance of $700 million to $900 million. Its core business remains on track to generate roughly $1 billion in adjusted EBITDA this year.

See also: How Uncertainty Became the Engagement Engine of the Digital Economy

DraftKings Is Turning the Sportsbook Into a Super App DraftKings said customer acquisition increased nearly 75% year over year during the second quarter, helped by the NBA Finals and World Cup. The company acquired roughly 30% more customers than expected while spending only about 10% more than planned, with acquisition costs coming in approximately 25% better than anticipated.

Some of those customers are coming from markets DraftKings historically could not reach through regulated sports betting. Its prediction product is now available nationally through the broader DraftKings Sports app. More than 600,000 customers have used predictions this year, and management said adoption has exceeded expectations. Annualized trading volume increased from $2.3 billion to $11 billion between April and July.

That changes the geographic logic of DraftKings’ business. Instead of waiting for large states such as California and Texas to legalize online sports betting, DraftKings can establish customer relationships there through prediction markets today. Robins said consumers in states without legal sportsbooks are showing profiles similar to sportsbook customers elsewhere.

Management said it sees only about 1% customer overlap between its sportsbook users and customers of the largest prediction market operator in states where online sports betting is already legal. DraftKings also estimates that 80% to 90% of prediction market volume in those jurisdictions comes from professional syndicates and institutional-style traders who were largely not sportsbook customers in the first place.

Early customer economics are reinforcing the thesis. DraftKings said prediction customers are being acquired for materially less than sportsbook customers while showing comparable early retention and volume characteristics. More than half have used “combos,” the prediction market equivalent of packaging multiple outcomes together, and the feature is approaching 20% of prediction volume.

Read also: DraftKings Brings $11 Billion Prediction Market Into Flagship App

Owning More of the Gaming Economics Comes Down to Infrastructure, Not Acquisition DraftKings now operates across three layers of the prediction market stack, including brokerage, exchange and market making. Management said owning those functions allows it to capture economics that would otherwise flow to third parties while giving the company greater control over products, pricing and customer experience.

The company plans to move much of its major sports prediction volume onto its own exchange, DKeX, beginning around the college football and NFL seasons. As more activity moves internally, management said it expects unit economics to improve, potentially creating a multiyear margin tailwind.

The sportsbook remains the engine. DraftKings is now trying to build an ecosystem around it.

The PYMNTS Intelligence report “Banking Both Sides: Instant Payouts Turn Receivers Into Customers” found that gig, creator and marketplace platforms are the most aggressive adopters of instant payouts in absolute terms, with nearly one-third of senders offering instant payouts always or most of the time.

For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.

Key Takeaways Weyerhaeuser beat earnings estimates as Wood Products EBITDA rose sharply on stronger lumber pricing.WY raised 2026 Strategic Land Solutions EBITDA guidance after expanding climate-related projects.Weyerhaeuser trades at a premium valuation as housing and commodity risks remain in focus. Weyerhaeuser Company (WY - Free Report) is showing signs of an earnings recovery, but the stock does not offer an easy buy case. Second-quarter results beat expectations and Wood Products improved sharply, while Climate Solutions and engineered wood investments add longer-term growth avenues.

The counterweight is valuation. WY trades well above its sub-industry, sector and the S&P 500 on forward earnings, while housing demand and commodity pricing remain uncertain.

WY's Earnings Recovery Supports the Bull CaseSecond-quarter adjusted earnings of 13 cents per share topped the Zacks Consensus Estimate of six cents by 116.7%. Net sales of $1.87 billion exceeded the $1.80 billion consensus mark by 4%, while Wood Products adjusted EBITDA rose to $129 million from $71 million sequentially.

Management expects higher lumber production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Engineered wood products also improved in the second quarter, with adjusted EBITDA rising to $54 million from $39 million.

Weyerhaeuser's Climate Assets Add OptionalityClimate Solutions generated $126 million of sales in the first half of 2026, including a $94 million conservation easement completed in the first quarter. Weyerhaeuser's second solar site began operating in the second quarter, with three additional solar developments under construction.

The company also received permits for its first biocarbon facility near its McComb, MS, lumber mill. Weyerhaeuser raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million, broadening its earnings sources beyond timber and wood products.

WY's Valuation Leaves Little Room for ErrorWY's forward 12-month price-to-earnings ratio stands at 49.94, compared with 27.18 for its Zacks sub-industry, 20.3 for the Zacks Construction sector and 20.71 for the S&P 500. The stock's five-year median is 30.18.

That spread makes execution more important. Investors need stronger earnings improvement to justify a multiple already above relevant benchmarks, leaving less room for operating setbacks or a slower recovery.

Weyerhaeuser's Housing Exposure Keeps Risk ElevatedDemand remains exposed to housing affordability, mortgage rates in the mid-6% range and weak consumer confidence. Repair-and-remodel activity was steady but muted in the first half, while OSB adjusted EBITDA posted a $6 million loss in the second quarter as supply exceeded demand and costs remained elevated.

Commodity sensitivity compounds the risk. Management estimates that a $10 change in lumber prices changes annual EBITDA by roughly $50 million. Louisiana-Pacific Corporation (LPX - Free Report) , another housing-linked wood-products producer, reported second-quarter OSB sales down $68 million year over year as prices and volumes declined. Rayonier Inc. (RYN - Free Report) , which now combines timberlands and wood products following its January merger with PotlatchDeltic, offers a related reference point for the same timber-and-lumber cycle.

WY's Hold Signal Matches the Trade-OffBottom line, WY's investment case remains balanced rather than decisive. Earnings recovery, Wood Products improvement and land-based growth opportunities support the outlook, but a premium valuation and housing-linked volatility keep the risk-reward from looking straightforward.

The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced short-term stance rather than a clear Buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F are less favorable readings within the Style Score framework, which is designed to complement the Zacks Rank. The score mix indicates that value, growth and momentum characteristics are not currently among the stronger Style Score profiles, leaving the fundamental recovery as the key area to watch.

Chesapeake Utilities Corporation (CPK) Q2 2026 Earnings Call August 7, 2026 8:30 AM EDT

Company Participants

Lucia Dempsey - Head of Investor Relations
Jeffrey Householder - President, CEO & Chairman
James Moriarty - Executive VP, General Counsel, Corporate Secretary and Chief Policy & Risk Officer
Jeffrey S. Sylvester - Senior VP & CFO

Conference Call Participants

Constantine Lednev - Wells Fargo Securities, LLC, Research Division
Michael Brown - Barclays Bank PLC, Research Division
Tate Sullivan - Maxim Group LLC, Research Division
Christopher Ellinghaus - Siebert Williams Shank & Co., L.L.C., Research Division
Paul Fremont - Ladenburg Thalmann & Co. Inc., Research Division

Presentation

Operator

Welcome to Chesapeake Utilities Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Lucia Dempsey, Head of Investor Relations. Please go ahead.

Lucia Dempsey
Head of Investor Relations

Thank you, and good morning, everyone. Today's presentation can be accessed on our website under the Investors page and Events and Presentations subsection. After our prepared remarks, we will open up the call for questions.

On Slide 2, we show our typical disclaimers, while I remind you that matters discussed on this conference call may include forward-looking statements that involve risks and uncertainties. Forward-looking statements and projections could differ materially from our actual results. The safe harbor for forward-looking statements section of our 2025 annual report on Form 10-K and in our second quarter Form 10-Q provide further information on the factors that could cause such statements to differ from our actual results.

Additionally, the company evaluates its performance based on certain non-GAAP measures, including adjusted gross margin, adjusted net income and adjusted earnings per share, and the information presented today includes the appropriate disclosures in accordance with the SEC's Regulation G. A reconciliation of these non-GAAP measures to the related GAAP measures have been provided in the

Key Takeaways Griffon's Q3 earnings rose 8.6%, while revenues increased 7% on favorable price, mix and volume.Residential demand drove volume gains, while price and mix contributed 6% to revenue growth.Griffon reaffirmed fiscal 2026 sales of $1.8 billion and adjusted EBITDA of about $458 million. Griffon Corporation (GFF - Free Report) reported third-quarter fiscal 2026 (ended June 2026) adjusted earnings of $1.51 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line increased 8.6% year over year.

Total revenues of $481.4 million beat the consensus estimate of $453 million and increased 7% year over year. The growth was attributable to favorable price and mix of 6%, along with increased volumes of 1%, driven primarily by residential.

GFF’s Operating ResultsEffective from the fiscal second quarter, Griffon declared its AMES U.S., Canada, UK and Australia businesses as discontinued operations. The company currently reports the continuing operations’ financial results as a single segment.

Margin ProfileGriffon’s cost of sales increased 10.6% year over year to $255.3 million. Selling, general and administrative expenses increased 3.0% year over year to $110.6 million. The gross margin decreased to 47.0% from 48.7% in the year-ago period.

Net income was $51.6 million against a net loss of $120.1 million in the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $124.8 million, up 2.1% from the year-ago quarter.

GFF’s Balance Sheet & Cash FlowAt the end of the fiscal third quarter, Griffon had cash and cash equivalents of $110.4 million compared with $99.0 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.26 billion at the end of the fiscal third quarter compared with $1.40 billion at fiscal 2025-end.

In the first nine months of fiscal 2026, the company generated net cash of $217.9 million from operating activities from continuing operations compared with $234.5 million in the year-ago period.

Griffon paid dividends of $30.9 million and repurchased shares worth $119.1 million in the same period. Exiting the fiscal third quarter, it had $193.8 million remaining under the share repurchase program.

In the first nine months of fiscal 2026, free cash flow from continuing operations was $194.2 million and capital expenditures were $23.7 million.

OutlookThe company has reaffirmed its fiscal 2026 financial guidance. For fiscal 2026 (ending September 2026), management anticipates net sales from continuing operations to be $1.8 billion.

It expects adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon now expects interest expense of $80 million, down from the prior expectation of $93 million, reflecting reduced debt and interest income from transaction-related notes receivable. Capital expenditures are expected to be $50 million.

GFF’s Zacks RankPerformance of Other CompaniesCarlisle Companies Incorporated (CSL - Free Report) reported second-quarter 2026 adjusted earnings of $7.03 per share, which beat the Zacks Consensus Estimate of $6.43 by 9.3%. The bottom line increased 12% year over year.

Revenues rose 8% year over year to a record $1.57 billion and surpassed the consensus estimate of $1.47 billion.

3M Company (MMM - Free Report) reported second-quarter 2026 adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.

MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year.

Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.

The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.

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The billionaire founder of Rockstar Energy has purchased millions of shares of Celsius Holdings and is calling for the ouster of that company's CEO after its earnings miss this week.

Russ Savage now controls more than 12 million shares of Celsius, he told CNBC. Celsius markets its energy drinks to athletes and health-conscious consumers and has exploded in popularity in recent years.

Savage founded Rockstar in 2001 and sold it to PepsiCo in 2020 for a final purchase price of more than $4 billion, he said.

Savage's stake in Celsius amounts to roughly 4.7% of the company and would be worth about $300 million at current stock levels. While Savage has been quietly advising Celsius to change its cost structure and marketing strategy for over a year, he now says new leadership is needed.

"The CEO, the COO, the brand manager and the marketing manager all need to be fired," Savage told CNBC.

Celsius said in response that it is seeing continued demand and resilience across its base.

"We welcome ideas that are potentially value-creating from all Celsius Holdings shareholders," a company spokesperson said in a statement. "We remain focused on executing our total energy portfolio strategy to drive durable, long-term growth. Members of our Board and management team have engaged with Russ Savage many times over the past several years."

Celsius shares plunged 18% on Thursday after the company's second-quarter earnings missed analyst expectations, coming in at 36 cents per share versus the 43 cents expected by Wall Street, according to LSEG. Revenue of $817.9 million fell below the $870 million expected, and net income attributable to common shareholders fell by more than half compared to last year's second quarter.

On the company's earnings call, Celsius Chairman and CEO John Fieldly cited a product rationalization program and deliberate pause in innovation as main reasons for the shortfall. He said the company was managing the integration of Alani Nu, which it acquired last year for $1.8 billion, and of the Rockstar brand in the U.S. and Canada, which it acquired from Pepsi also last year as part of a long-term strategic partnership.

Pepsi continues to own the Rockstar brand internationally.

Fieldly said on the earnings call that the company may have been overly aggressive in reducing the number of products being sold to make way for newer lines. Still, he said, the company sells 1 out of every 5 energy drinks in the U.S., and the sector remains strong.

"We are a key growth driver for the energy category, and we are just beginning to unlock the full potential of our expanding portfolio," Fieldly said.

Savage, who was born Russell Weiner and started Rockstar with a $50,000 mortgage against his California condo, said he offered advice to Celsius over a year ago, but was largely ignored. He said Celsius has too many layers of management, with too many costs, and no real accountability.

"They need one person making the decisions, paying attention to every detail, not a group of people in a firing squad," he said.

Savage said the implication in the earnings call, that Celsius gave up shelf space to make way for its other brands, was a dire signal. In the fast-moving and hypercompetitive energy drink space, it's difficult for brands to reclaim shelf space once they've lost it, he said.

"Once you lose shelf space, you're dead," he said. "The chains will give it to Red Bull or Monster."

Savage said he's offering to take over as CEO before the problems become too deep to fix. When building Rockstar, he said, he managed every detail — from sales and marketing to sponsorships, packaging, distribution and innovation. He said the same type of cost-conscious, driven leader is needed at Celsius.

"I'm publicly volunteering to do it," he said. "The CEO has lost credibility with the investment community."

Savage said he's owned Celsius shares on and off for more than two years. He started acquiring his most recent stake in March, when the stock fell to the low $30 range. He said he bought the stock thinking it was undervalued and poised for a recovery. But he blamed what he called management missteps for the shares' continued decline.

"I didn't think they would wreck it this badly," he said. "Now I'm trying to help fix it."

Celsius stock now trades at about $27 per share after a sharp gain on Friday following CNBC's report of Savage's stake.

Celsius Holdings 3-day chart.

Item 1 of 3 The Resmed name and logo are shown on one of their buildings in San Diego, California, U.S., August 3, 2026. REUTERS/Mike Blake

[1/3]The Resmed name and logo are shown on one of their buildings in San Diego, California, U.S., August 3, 2026. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab

CompaniesAug 7 (Reuters) - Shares of ResMed (RMD.N), opens new tab dropped about 6% in morning trade on Friday after the medtech company forecast fiscal 2027 revenue below Wall ​Street expectations, impacted by suspended ventilator sales and cost pressures.

ResMed said it would ‌suspend sales of its Astral ventilators, used by patients who require acute or long-term life-support, following a device correction and FDA recall, opens new tab tied to five serious injuries last week.

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The fresh guidance ​assumes no sales of Astral ventilators during fiscal 2027 and factors ​in an expected $75 million impact due to the suspension, as the ⁠company redirects scarce electronic components to support repairs and servicing of existing devices. ​ResMed said it has not yet decided whether Astral sales will resume in ​fiscal 2028.

The company now expects fiscal 2027 revenue of $5.75 billion to $5.85 billion, below analysts' expectations of $5.92 billion, according to data compiled by LSEG.

Emerging competitive and ongoing cost pressures also limit ​its growth outlook, Baird analyst David Rescott said.

ResMed, which makes devices to manage ​sleep apnea, among other medical equipment, plans to increase prices during fiscal 2027 as rising costs ‌for ⁠electronic components and freight pressure its margins.

“We can no longer offset inflation with productivity alone,” CFO Aaron Bloomer said on a call with analysts.

ResMed's sleep apnea devices face competition from Eli Lilly's (LLY.N), opens new tab weight-loss drug Zepbound, which was approved by the ​FDA in 2024 ​to treat obstructive ⁠sleep apnea. While the condition can affect anyone, it is more common in people who are overweight or obese, according to ​the health regulator.

But Morningstar analysts said the Apple Watch's (AAPL.O), opens new tab ​ability to ⁠identify possible sleep apnea cases could drive more diagnoses and treatment, which could help counter the weight-loss-drug threat to ResMed's devices. Sleep apnea devices are still the standard of ⁠care ​on the market and widely used.

ResMed reported fourth-quarter ​adjusted profit of $2.95 per share, topping estimates of $2.89, while revenue rose 9% to $1.46 billion, in line ​with expectations.

Reporting by Kunal Das and Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways Datadog's Q2 revenues rose 36% to $1.12 billion, while non-GAAP EPS reached 65 cents.More than 750 AI customers use Datadog, with 31 spending over $1 million annually. Datadog sees Q3 revenues of $1.135B-$1.145B after derisking lower usage at its largest customer. Datadog, Inc. (DDOG - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating demand across AI and non-AI customers, while acknowledging a usage reduction at its largest customer.

Co-Founder and CEO Olivier Pomel framed AI as an additional growth driver, citing stronger cloud consumption, new observability workloads and wider adoption of Bits AI and security products.

DDOG Sees Broad-Based Growth AccelerationRevenues rose 36% year over year to $1.12 billion, while non-GAAP earnings were 65 cents per share. Revenues and earnings exceeded the Zacks Consensus Estimate of $1.08 billion and 58 cents, respectively.

CFO David Obstler said sequential revenue growth of 11% was the strongest since the second quarter of 2022, with a record $115 million added from the first quarter. Non-AI customer revenue growth accelerated to the high-20% range.

Datadog ended the second quarter with about 4,720 customers generating at least $100,000 in ARR, up from about 3,850 a year earlier.

Datadog Builds Around AI-Native DemandPomel said more than 750 AI customers use Datadog, including all 10 companies management identifies as leading AI players. Obstler added that 31 AI customers spend more than $1 million annually, including eight above $10 million.

Pomel said MCP tool calls quadrupled again sequentially and rose more than 22 times versus Q4 2025. He described observability opportunities across GPUs, models, agents and the applications those agents call.

Obstler said enterprise new-logo annualized bookings more than doubled year over year. New customers accounted for about 30% of year-over-year revenue growth, up from 25% in the first quarter.

DDOG Pushes Bits AI Deeper Into OperationsPomel said Bits AI has expanded beyond alert investigation into chat, monitoring management, coding, testing and release validation. Datadog is also rolling out AI-credit packaging as its use cases broaden.

A Bank of America analyst asked whether automation could reduce traditional observability activity. Pomel said Bits AI users are deploying more of the platform, creating more dashboards and alerts, and bringing more users into Datadog.

Pomel also said Bits Security Analyst is being separated from Datadog's SIEM so it can work with other SIEMs, widening the market for AI-driven security operations.

Datadog Derisks Largest-Customer UsageManagement disclosed a nine-figure renewal with its largest customer, but said usage will decline beginning in the third quarter. Pomel said Datadog fully derisked guidance for that customer so the account would not overshadow broader business trends.

For the third quarter, revenues are expected to be $1.135 billion to $1.145 billion, representing 28% to 29% growth, with non-GAAP earnings estimated to be 63 to 65 cents per share. Full-year revenue guidance is $4.45 billion to $4.47 billion.

A Morgan Stanley analyst pressed for renewal details and the lower usage. Pomel declined to discuss customer-specific economics, while stressing that growth excluding the largest customer has continued to accelerate.

DDOG Q&A Tests Sustainability and SpendA Goldman Sachs analyst raised customer concerns about Datadog bills. Pomel said the company must show its software saves customers money or helps them make money, and highlighted AI cost control as a growing priority.

Pomel said Infinite Cardinality Metrics is designed to reduce billing unpredictability when customers send more granular data. He tied the product to rising data volumes and more complex questions from AI applications.

A JPMorgan analyst asked whether non-AI acceleration is sustainable. Pomel said growth is largely coming from existing customers through higher volumes, cloud migration and broader product adoption. Obstler also cited expanded go-to-market capacity.

Datadog Keeps Investing Into ScalePomel closed with confidence on product development and go-to-market execution, saying Datadog has more products planned for the remainder of the year and large sales pipelines to pursue.

Obstler said R&D and go-to-market investments are producing results and positioning the company for continued execution.

DDOG's Zacks Signals Stay MixedDDOG carries a Zacks Rank #2 (Buy), alongside a Growth Score of A, Momentum Score of A and a VGM Score of B. Under the Zacks Style Scores framework, A and B are the more favorable grades, especially when paired with a Zacks Rank #1 (Strong Buy) or #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Value Score of F tempers that profile because the framework gives its strongest preference to top-ranked stocks with A or B individual Style Scores. The Zacks Rank can change as earnings estimates are revised after the reported results.
 

Key Takeaways Labcorp shares gained 14% in a month as earnings, revenues and operating margins improved. Specialty testing posted double-digit growth in oncology, women's health, autoimmune disease and neurology.Labcorp trades at 16.7X forward earnings, above its 14.4X five-year median but below its 17.8X high. Labcorp Holdings Inc. (LH - Free Report) shares have gained 14% in the past month, sharpening the debate over how much upside remains after a rapid advance. The rally comes as the company is reporting better earnings, expanding margins and growth across both Diagnostics Laboratories and Biopharma Laboratory Services.

The operating picture has improved, but valuation has moved above Labcorp’s longer-term norm. That leaves investors weighing execution and business momentum against a higher bar for future results.

Labcorp’s One-Month Rally Sets a Higher BarLabcorp’s 14% four-week gain stands out against an already stronger operating backdrop. The company’s Diagnostics Laboratories business grew revenues 5.5% year over year in the second quarter, while Biopharma Laboratory Services, or BLS, advanced 6.5%.

The move does not establish that any single development drove the stock higher. It does, however, raise expectations as investors assess whether improving profitability, specialty testing demand and biopharma activity can sustain the recent momentum.

LH’s Q2 Results Add Fundamental SupportSecond-quarter adjusted earnings were $4.99 per share, up 14.9% year over year and 4.2% above the Zacks Consensus Estimate. Revenues increased 5.8% to $3.73 billion and also topped the consensus mark.

Profitability improved with the top line. Adjusted operating income rose to $588.7 million from $531.6 million, while the enterprise adjusted operating margin expanded 70 basis points to 15.8%. The margin gain shows that revenue growth is translating into better operating leverage.

In the past 30 days, Labcorp’s 2026 earnings have moved north by 1.3% to $18.24. 

Image Source: Zacks Investment Research

Labcorp’s Growth Drivers Still Have Room to RunSpecialty testing remains a central growth engine. Oncology, women’s health, autoimmune disease and neurology each delivered double-digit revenue growth during the first half of 2026, supporting new health-system and provider wins and a favorable test mix.

BLS adds another source of momentum. Second-quarter revenue rose 6.5% to $836.2 million, Central Laboratories revenue increased 9.8% and the segment’s adjusted operating margin reached 17%. Quest Diagnostics Incorporated (DGX - Free Report) , another large diagnostic testing provider, offers investors a direct industry comparison for laboratory demand and health-system relationships. Thermo Fisher Scientific Inc. (TMO - Free Report) also provides a relevant biopharma-services reference point through its broad pharmaceutical and clinical research capabilities.

LH’s Valuation Raises the Priced-In QuestionLabcorp trades at 16.7X forward 12-month earnings, modestly above the Zacks sub-industry’s 16.2X multiple. It also sits well above its own five-year median of 14.4X, although the current multiple remains below the five-year high of 17.8X.

Image Source: Zacks Investment Research

That premium does not negate the company’s improving results, but it reduces the room for disappointment. Further upside will likely require continued earnings execution, sustained specialty and BLS growth and additional margin progress to justify a valuation already above Labcorp’s longer-term norm.

Labcorp’s Ratings Favor Momentum Over GrowthThe near-term setup is balanced rather than one-sided. Labcorp currently carries a Zacks Rank #3 (Hold), which points to a neutral short-term earnings-revision backdrop rather than a clear buy or sell signal.

The Style Scores tilt more favorably toward momentum and value. Labcorp has a VGM Score of B, Momentum Score of A and Value Score of B, while its Growth Score is C. The mix fits the current tension: price momentum and valuation characteristics are favorable, but the pure-growth profile is less compelling. After the recent rally, execution remains important as investors weigh business progress against a richer valuation.

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