It has been about a month since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Cintas’ Q1 Earnings & Revenues Beat Estimates on Margin GainsCintas reported first-quarter fiscal 2027 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.35 by 3.0%. The bottom line increased 15.8% from the year-ago quarter. Revenues of $3.01 billion surpassed the consensus estimate of $2.97 billion by 1.6% and rose 10.9% year over year.
The top line benefited from 8.9% organic revenue growth, reflecting growth after adjusting for acquisitions, foreign currency movements and workday differences. Record gross and operating margins were other key highlights in the quarter.
Cintas' Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses are included in All Other. Quarterly sales data are briefly discussed below.
Cintas' Uniform Rental and Facility Services segment generated revenues of $2.29 billion, up 9.7% year over year from $2.09 billion. Segment operating income rose to $575.09 million from $499.94 million.
The First Aid and Safety Services segment delivered revenues of $388.52 million, increasing 16.1% from $334.66 million in the prior-year quarter. Operating income climbed to $99.54 million from $80.33 million.
Revenues from the All Other segment totaled $330.73 million, up 13.1% from $292.40 million a year ago. Segment operating income increased to $51.67 million from $37.60 million.
Margin ProfileCintas' cost of sales totaled $1.46 billion compared with $1.35 billion in the year-ago quarter. Gross margin increased 13.7% to $1.55 billion, while gross margin as a percentage of revenue expanded to 51.5% from 50.3%.
Selling and administrative expenses were $827.24 million, up 10.5% year over year. The company also incurred $14.41 million of transaction expenses related to the proposed UniFirst Corporation acquisition. Operating income rose 15.2% to $711.89 million.
Operating margin improved to 23.6% from 22.7% in the prior-year quarter. Net income increased 12.3% to $551.71 million, while net income margin was 18.3% compared with 18.1%. The effective tax rate increased to 20.0% from 17.6%.
Cintas' Cash Flow TrendsIn the first quarter of fiscal 2027, Cintas generated $572.33 million in net cash from operating activities, up from $414.48 million in the year-ago period. Capital expenditures totaled $107.53 million compared with $101.96 million a year earlier.
Free cash flow increased to $464.80 million from $312.52 million. Net cash used in investing activities was $117.37 million, reflecting capital expenditures, purchases of investments and business acquisitions.
During the quarter, the company repurchased common stock worth $315.71 million and paid $180.70 million in dividends. Net cash used in financing activities totaled $500.17 million.
Balance SheetCintas exited the quarter with cash and cash equivalents of $243.60 million compared with $289.02 million at the end of fiscal 2026. Accounts receivable increased to $1.59 billion from $1.56 billion, while inventories declined to $433.29 million from $446.44 million.
Total current assets were $3.93 billion compared with $3.85 billion at May 31, 2026. Long-term debt was $1.43 billion, while debt due within one year totaled $999.29 million. Total shareholders' equity increased to $5.20 billion from $5.14 billion.
Cintas' Fiscal 2027 OutlookFor fiscal 2027, the company raised its revenue guidance to $12.15-$12.27 billion from the prior projection of $12.10-$12.25 billion. Adjusted diluted earnings per share are now projected in the range of $5.45-$5.54, up from $5.36-$5.50 previously.
The guidance excludes expected impacts from the proposed UniFirst acquisition and assumes no future acquisitions and constant foreign exchange rates. Fiscal 2027 also has one more workday than fiscal 2026.
Cintas expects net interest expense of approximately $103.00 million compared with $101.20 million in fiscal 2026, with the increase primarily tied to amortization of bridge loan financing expenses related to UniFirst. The company projects an effective tax rate of 20.4% for fiscal 2027.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, Cintas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Corning expects Q3 sales of $5 billion and EPS of 88 cents, with its model predicting an earnings beat.AI infrastructure demand and deals with Amazon, NVIDIA and Verizon support Optical Communications growth.Solar profitability may improve as production resumes, while uneven consumer electronics pose challenges. Corning Incorporated (GLW - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 27, 2026. The Zacks Consensus Estimate for sales and earnings is pegged at $5 billion and 88 cents per share, respectively. Earnings estimates for GLW have increased 0.61% to $3.29 for 2026 and increased 0.47% to $4.3 for 2027 over the past 60 days.
GLW Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise HistoryThe advanced glass substrates producer has a solid trailing four-quarter earnings surprise history. It delivered a four-quarter earnings surprise of 1.75%, on average.
Image Source: Zacks Investment Research
Earnings WhispersOur proven model predicts a likely earnings beat for Corning for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. That is exactly the case here.
Corning currently has an ESP of +0.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factor Shaping Upcoming ResultsCorning’s Optical Communications business is expected to remain a key driver of its third-quarter 2026 performance. Growing investment in AI infrastructure and hyperscale data centers is boosting demand for optical fiber, cables and high-density connectivity solutions.
Multiyear agreements with Amazon and NVIDIA, along with Corning's previously announced partnership with Meta, provide further support for demand. The company's September agreement with Verizon to supply high-density optical fiber and connectivity solutions through 2032 also strengthens its long-term growth prospects.
Corning's Solar business is another important factor to watch as the company seeks to improve profitability following production-related disruptions. An extended maintenance shutdown and equipment upgrades at the wafer facility weighed on profitability during the second quarter. Management expects sales and profits to improve in the third quarter as production resumes and operational efficiency strengthens. However, performance across other businesses remains uneven. Demand trends in consumer electronics and automotive markets, along with higher memory prices affecting smartphones, could hinder growth in some of Corning's businesses.
Price PerformanceOver the past year, Corning has surged 41.8% compared with the industry’s growth of 100.8%. It has outperformed peers like Amphenol Corporation (APH - Free Report) but lagged Ciena Corporation (CIEN - Free Report) over this period. While Amphenol has gained 9.2%, Ciena has jumped 80.2%.
Image Source: Zacks Investment Research
Key Valuation MetricFrom a valuation standpoint, Corning appears discounted relative to the industry and is trading below its mean. Going by the price/earnings ratio, the company’s shares currently trade at 30.24 forward earnings, lower than 31.13 for the industry and higher than the stock’s mean of 26.57.
Image Source: Zacks Investment Research
Investment ConsiderationCorning is strengthening its position in the expanding AI infrastructure market through its optical connectivity portfolio and relationships with major technology companies. As data centers require greater bandwidth and more sophisticated networking capabilities, demand for optical fiber, cable and connectivity products could provide a significant growth opportunity. The company's planned expansion of U.S. manufacturing capacity and its investment in next-generation optical technologies further support its long-term prospects.
Under the upgraded Springboard plan, management aims to reach annualized sales run rates of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. However, these targets depend on successful execution and sustained customer demand.
The Solar business offers another potential source of growth as Corning expands its U.S. manufacturing capabilities across polysilicon, wafers and modules. A recovery in production efficiency could support improved segment profitability.
End NoteAI-driven demand for optical connectivity, long-term customer agreements and improving operating margins are major positives for Corning ahead of third-quarter results. The anticipated recovery in Solar profitability could provide an additional boost. Sustained improvement in its profitability and cash generation over the past few quarters is a tailwind. Hence, with a Zacks Rank #2, Corning appears to be a good investment option at present.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KODK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Key Takeaways FuelCell Energy's system earns a 99.873% capacity rating in PJM's 2028/2029 reliability assessment.PJM projects 32 GW of peak load growth by 2030, with about 30 GW expected from data centers.High capacity accreditation could raise eligible projects' revenue potential, subject to market outcomes.
FuelCell Energy, Inc. (FCEL - Free Report) has achieved a 99.873% capacity rating for its FuelCell Energy Block System in PJM Interconnection’s unit-specific Effective Load Carrying Capability (ELCC) assessment for the 2028/2029 Reliability Backstop Procurement process. The result highlights the potential reliability contribution of the company’s fuel cell technology as electricity demand rises, particularly from data centers and other large power consumers seeking dependable, on-site generation.
FuelCell Energy Secures Strong PJM Capacity AccreditationThe 99.873% rating indicates that PJM may recognize nearly all the evaluated system’s capacity as dependable under the applicable assessment. In practical terms, approximately 99.9 megawatts of every 100 megawatts evaluated could be counted as dependable capacity.
For comparison, PJM’s preliminary technology-class ratings for the same period recognize 96% of nuclear capacity, 93% of diesel utility or engine-based backup capacity and 67% of gas combustion turbine capacity. The assessment provides an important benchmark for customers evaluating the dependability of FuelCell Energy’s systems.
However, the rating applies specifically to the system evaluated for the 2028/2029 procurement process. It is not a technology-wide rating or a measure of operating uptime, and future assessments could differ.
Rising Data Center Demand Boosts Need for On-Site PowerGrowing electricity consumption from data centers is increasing pressure on power infrastructure and strengthening the need for dependable generation. PJM projects 32 gigawatts of peak load growth across its region between 2024 and 2030, with approximately 30 gigawatts expected to come from data centers.
Against this backdrop, large electricity users are increasingly considering generation solutions that can deliver power directly where it is needed. FuelCell Energy’s carbonate fuel cell technology provides continuous, on-site electricity generation, potentially helping data centers, industrial facilities and other large customers address their power requirements.
The company's latest capacity assessment could provide customers with an additional independent measure when evaluating on-site generation options.
Capacity Accreditation Could Support Market OpportunitiesThe strong accreditation also carries potential economic implications for FuelCell Energy and eligible projects using its systems within PJM. The grid operator uses ELCC assessments to evaluate the reliability contribution of power resources and convert installed capacity into accredited capacity.
A higher accredited capacity level may allow eligible projects to offer more capacity into PJM's capacity market, potentially increasing their revenue opportunities. However, actual participation and financial benefits remain subject to market requirements, procurement decisions and auction outcomes.
Future participation in the Reliability Backstop Procurement process would also depend on the applicable evaluation procedures. Following federal regulatory approval and delayed implementation of the procurement process, updated accreditation could be required using revised assumptions and study inputs.
FuelCell Energy emphasized that customers need to understand how much power they can depend on as they determine where and how quickly to expand. He noted that the assessment offers an independent measure of the platform's dependability and could have economic significance because accredited capacity influences the amount of generation that can potentially be monetized.
FuelCell Energy Targets Mission-Critical Power NeedsFuelCell Energy develops modular fuel cell systems designed to provide continuous, scalable baseload electricity for mission-critical applications. Its systems generate power at the point of use and serve data centers, industrial facilities, utilities and distributed-generation customers.
The 99.873% assessment result strengthens the company's case for consideration by customers seeking reliable on-site power amid rising electricity demand. It also highlights a potential avenue for eligible projects to participate in PJM's capacity market.
Nevertheless, the ultimate commercial benefit will depend on project eligibility, future accreditation assessments and applicable market outcomes. The latest result offers a positive reliability signal as FuelCell Energy seeks to address growing demand for dependable power solutions.
FCEL’s Zacks Rank & Key PicksFuelCell Energy is a clean energy company that develops and provides stationary fuel cell systems for on-site, continuous power generation. Currently, FCEL carries a Zacks Rank #3 (Hold).
Investors interested in the alternative energy sector may consider some top-ranked stocks like Montauk Renewables, Inc. (MNTK - Free Report) , Clearway Energy, Inc. (CWEN - Free Report) and Enlight Renewable Energy Ltd (ENLT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Montauk Renewables is a fully integrated renewable energy company that specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2026 earnings indicates 1100% year-over-year growth.
Clearway Energy, along with its subsidiaries, owns and operates a diversified portfolio of contracted renewable and conventional generation in the United States. The Zacks Consensus Estimate for CWEN’s 2026 revenues indicates 17.6% year-over-year growth.
Enlight Renewable Energy provides a renewable energy platform that develops, finances, constructs, owns and operates renewable energy projects. The Zacks Consensus Estimate for ENLT’s 2026 revenues indicates 40.2% year-over-year growth.
, /PRNewswire/ -- National trial law firm Hagens Berman alerts investors in FuelCell Energy, Inc. (NASDAQ: FCEL) that a securities class action has been filed, and reminds investors that they have until November 10, 2026, to seek appointment as lead plaintiff.
If you purchased or acquired FuelCell securities during the Class Period and suffered significant financial losses, submit your losses now.
Key Details
Class Period: June 24, 2026 – Sept. 1, 2026
Lead Plaintiff Deadline: Nov. 10, 2026
Visit: www.hbsslaw.com/fcel
Direct Contact Email: [email protected]
Firm Telephone: 844-916-0895
Video: https://youtu.be/GlhunVARgjo
What is the FuelCell Securities Class Action About?
The lawsuit focuses on whether FuelCell Energy and certain top executives—including CEO Jason B. Few and CFO Michael S. Bishop—violated the Securities Exchange Act of 1934 by making materially false and misleading statements regarding the company's manufacturing capacity, production economics, and a major commercial agreement.
Specifically, the action alleges that throughout the Class Period, defendants touted a high-profile Capital Equipment Purchase Agreement (CEPA) announced on June 24, 2026, under which FuelCell agreed to supply carbonate fuel cell block systems for up to 380 megawatts (MW) of clean, baseload on-site power for data centers to Fit Energy USA LP (beginning with an initial 30 MW phase). Concurrently, FuelCell capitalized on the market enthusiasm by completing a massive underwritten public offering of over 12 million shares of common stock at $21 per share, raising roughly $245.5 million in net proceeds.
However, the complaint alleges that defendants failed to disclose critical operational realities to investors:
That FuelCell's actual manufacturing capacity was wholly inadequate to generate the production rates required under the Fit Energy CEPA;
That the lagging production volume meant product costs and manufacturing overhead heavily exceeded the contractual pricing, locking the company into severe gross losses; and
That the company was tracking multi-million-dollar charges and inventory commitments tied to Phase 0 of the agreement that would decimate its quarterly profitability.
The truth emerged before the market opened on September 2, 2026, when FuelCell reported its fiscal third-quarter 2026 financial results. The company revealed a staggering net loss of $45.3 million and a massive jump in gross losses—driven by $17 million in charges recorded for Phase 0 of the Fit Energy CEPA because current product costs and overhead exceeded contract pricing.
Following these disclosures, the price of FuelCell stock plummeted nearly 16% in a single trading session, severely damaging shareholders.
What Can FuelCell Investors Do?
If you purchased FCEL securities between June 24, 2026, and September 1, 2026, you may be eligible to participate in the lawsuit as a lead plaintiff.
The Private Securities Litigation Reform Act of 1995 permits any investor who suffered financial losses to seek appointment as lead plaintiff. You do not need to sell your shares to join the class action.
Click Here To Submit Your Losses
Click Here to Discuss Your Legal Rights: Contact Hagens Berman attorneys to learn more about the case, the lead plaintiff timeline, and your options.
"We're focused on whether FuelCell may have misled investors about its manufacturing capabilities, as the suit alleges," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the claims in the pending suit.
Whistleblowers: Persons with non-public information regarding FuelCell should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Rithm (RITM - Free Report) reported $1.76 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 58.9%. EPS of $0.55 for the same period compares to $0.54 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +17.71%. The company delivered an EPS surprise of +7.84%, with the consensus EPS estimate being $0.51.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Rithm performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Interest income: $479.59 million versus the two-analyst average estimate of $491.2 million. The reported number represents a year-over-year change of +5.7%.Revenues- Servicing revenue, net: $716.65 million versus $404.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +127.6% change.Revenues- Other residential-related revenue: $51.64 million versus the two-analyst average estimate of $48.23 million. The reported number represents a year-over-year change of -7.2%.Revenues- Asset management revenue: $107.35 million versus the two-analyst average estimate of $136.7 million. The reported number represents a year-over-year change of +26.5%.Revenues- Commercial real estate revenue: $187.04 million versus the two-analyst average estimate of $198.05 million.Revenues- Gain on originated residential mortgage loans, held-for-sale, net: $214.16 million versus the two-analyst average estimate of $232.05 million. The reported number represents a year-over-year change of +9.1%.View all Key Company Metrics for Rithm here>>>
Shares of Rithm have returned -4.8% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
3 Ultra-High Dividend Yield Stocks for the New YearRithm Capital NYSE: RITM reported third-quarter earnings available for distribution of $315 million, or $0.55 per diluted share, while GAAP net income totaled $217 million, or $0.38 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said the company’s earnings available for distribution exceeded dividends paid for the 28th consecutive quarter.
The company reported book value of approximately $7 billion and said its common dividend was $0.25 per diluted share, representing an 11.2% yield cited during the call. Rithm ended the quarter with $1.9 billion of cash and liquidity.
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Nierenberg said the quarter occurred amid wider market spreads, higher interest rates and persistent geopolitical concerns. He attributed the company’s performance to its operating businesses, including mortgage platform Newrez and residential transition lender Genesis, as well as risk management and hedging activities.
Mortgage platform delivers 24% operating ROE Newrez generated approximately $330 million in third-quarter pretax income excluding mark-to-market items, up 7% from the prior quarter, according to Newrez President Baron Silverstein. The mortgage business produced a 24% annualized operating return on equity during the quarter and has delivered annualized operating ROEs in the high teens to low 20% range for 15 consecutive quarters, he said.
Newrez funded $12.9 billion of mortgages during the quarter, down 19% sequentially as higher interest rates reduced overall industry origination volumes. However, non-agency origination volumes rose 8% quarter over quarter and 30% year over year. Rithm said Newrez originated $5.1 billion of non-agency loans year to date, primarily in the non-QM category, a record for that product class.
Silverstein said the company continued to emphasize pricing discipline rather than pursuing market share. He noted that Newrez’s consumer-direct margin improvement reflected product mix, including fewer refinances and more home equity and non-QM loans, while competition continued to pressure wholesale margins.
Newrez’s servicing platform included approximately $879 billion to $880 billion of mortgage servicing rights at quarter-end. The company added 15 new third-party servicing clients and approximately $80 billion of new loan boardings year to date. Silverstein said prepayment speeds were approaching a floor, given normal turnover related to life events and loan seasoning.
Rithm expects technology and artificial intelligence investments to generate approximately $125 million in annualized savings at Newrez. The company said straight-through processing for eligible loans through its HomeVision co-development is expected to launch in the fourth quarter, while phased migration to ValonOS is expected in the first quarter of 2027. Nierenberg said the benefits of those initiatives are expected to begin emerging in 2027 and continue through 2028.
Asset management inflows and expansion plans Rithm said it managed more than $60 billion of third-party assets and roughly $110 billion of investable assets when including its balance sheet. The company raised $569 million of new asset-management capital during the quarter and reported nearly $3 billion of year-to-date gross inflows. Fee-paying assets under management represented about 76% of total AUM.
Nierenberg said Crestline completed the final close of its European Capital Solutions Fund with $625 million of commitments. He also said Rithm completed a first close for a new asset-backed finance fund with a U.S. pension fund and is seeing demand for asset-backed finance, residential credit, separately managed accounts, real estate and multi-strategy products.
The company expects organic asset-management growth to lift AUM to between $75 billion and $80 billion by the end of 2028. Nierenberg said Rithm also continues to evaluate acquisitions and views infrastructure as a potential future area of expansion, though he said the company would seek a scaled platform rather than build the business with only a small team.
Real estate leasing activity accelerates At Elecor Properties, formerly Paramount, Rithm reported approximately 1 million square feet of executed and pending leases year to date across its New York and San Francisco core portfolios. The weighted average initial rent was approximately $100 per square foot, 22% above the comparable rate for 2025 transactions.
Head of Real Estate Peter Brindley said Elecor signed 320,000 square feet of new leases during the quarter and formed a joint venture with a strategic partner for 1301 Avenue of the Americas. The building is currently 100% leased following a 113,000-square-foot renewal and expansion by a financial institution.
Elecor’s New York core portfolio was 88.6% leased at quarter-end. In San Francisco, leased occupancy reached 65%, up 590 basis points from the first quarter of 2026. Brindley said about 65% of the company’s year-to-date leasing occurred in San Francisco, with 96% involving companies new to the portfolio.
Nierenberg also highlighted the sale of an office property in Ballston, Virginia, acquired for approximately $26 million to $27 million and sold during the third quarter for more than $50 million. He said the transaction generated a 30% internal rate of return and a 1.6-times multiple on invested capital.
Genesis targets selective growth Genesis originated $1.5 billion of residential transition loans during the quarter, bringing year-to-date originations to $5 billion and above its full-year 2025 total. The business generated $33 million of pretax income, up 14% year over year, and an annualized ROE of about 13%.
Nierenberg said Genesis expects total production of roughly $6 billion to $6.5 billion, while identifying multifamily lending as a significant longer-term growth opportunity. He emphasized that Genesis is focused on loans to high-quality sponsors rather than volume growth for its own sake, noting that the platform’s delinquency rate was approximately 3%.
During the question-and-answer session, Nierenberg said Rithm expects its book value to be roughly unchanged quarter to date. He said the company intends to deploy its balance sheet selectively, including to support its origination businesses and asset-management products, while bringing in third-party capital for larger opportunities.
About Rithm Capital (NYSE:RITM)Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.
Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.
Rithm primarily serves the U.S.
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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As the U.S. pushes to bring chipmaking home, billions are flowing into new factories, creating massive demand for tools to bring new fabs online. Taiwan Semiconductor Manufacturing (TSM +1.12%), for example, added $100 billion to its Arizona plans in July, bringing its planned U.S. investment to $265 billion. Micron Technology (MU +3.34%) raised its own U.S. spending plan to more than $250 billion through 2035 that same month.
That means tool orders can arrive before a new fab reaches full production. Beyond TSMC and Micron, other companies stand to benefit, including Intel (INTC +1.52%), ASML Holding (ASML +0.89%), Applied Materials (AMAT +1.11%), and Qualcomm (QCOM +1.09%).
For investors, the question now is: Who gets paid first, the companies that build the tools, or the ones that run the factories? Intel is a good place to start.
Image source: Getty Images.
Intel faces a key turnaround test
With both chip design and manufacturing under one roof, Intel has direct exposure to U.S. efforts to expand local production. Its foundry business could also attract customers seeking alternatives to established manufacturers.
While toolmakers are paid first when fabs are built, Intel sits in the middle of the chain, generating revenue only after it starts shipping chips to device manufacturers. The challenge is execution. Intel must improve manufacturing performance, attract outside customers, and sell enough chips to justify its spending.
That said, another company supplies the tools Intel needs, allowing it to benefit even before production begins.
ASML: the tollbooth for advanced chipmaking
Advanced lithography machines from ASML help chipmakers print complex circuit patterns. As a result, ASML is an early beneficiary when Intel, TSMC, or other manufacturers expand capacity.
However, ASML's growth still depends on customers following through on spending plans. Export restrictions and geopolitical tensions around Taiwan could disrupt sales. With the stock trading at a premium valuation -- a price-to-earnings (P/E) above 40 -- it leaves investors vulnerable if expected growth disappoints.
ASML ASML$1,574.41+$13.87 (+0.89%)
NASDAQ · As of 1:48 PM ET 10/23/26
More ways to capture equipment spending at Applied Materials
Meanwhile, a fellow toolmaker can capture more spending by selling a wider range of equipment. Applied Materials supplies equipment and services used to manufacture chips. Its broad portfolio has exposure to logic chips, memory, and other semiconductor components.
Whether Intel or TSMC expands production, equipment spending creates more business for the company, giving it several ways to benefit. However, delayed projects, export controls, and competition can weaken orders and revenue growth.
TSMC: a proven chipmaker for outsourced production
Once that equipment ships, a contract manufacturer uses it to create advanced chips. As a foundry, TSMC manufactures chips for customers that outsource production, including those that design advanced AI chips. Its established customer relationships and manufacturing capacity position it to benefit from growing AI demand.
Like Intel, TSMC sits in the middle of the supply chain, using the equipment supplied by toolmakers to manufacture chips. Geopolitical tensions around Taiwan create significant operational risk, while U.S. expansion can be more expensive than expansion in Taiwan.
Micron's memory fabs come with high upfront costs
Meanwhile, a memory maker offers exposure to a different part of the AI supply chain. Equipment from the toolmakers helps Micron Technology produce the DRAM and NAND memory used in computers and smartphones. Demand for high bandwidth memory can support added capacity.
The catch is cyclicality. If supply grows faster than demand, memory prices and profits can fall sharply. Micron must also fund costly manufacturing upgrades while competing against other large memory producers.
MU Micron Technology$885.08+$28.59 (+3.34%)
NASDAQ · As of 1:51 PM ET 10/23/26
A fabless model lets Qualcomm skip building its own fabs
Still, one company offers a way to invest in the chip boom without owning the factories. Qualcomm designs processors and connectivity technology for smartphones and connected devices. Its fabless model allows it to outsource manufacturing rather than funding its own factories.
The company sits toward the end of the supply chain, serving as a customer of TSMC. Its growth depends on chip demand and product competitiveness. But smartphone weakness and competition remain key risks.
Who gets paid first when new fabs open?
The six companies sit at different points in the supply chain, and some get paid sooner than others. ASML and Applied Materials sit nearest the top of the supply chain. Their equipment is needed before new fabs can produce chips at scale, allowing them to get paid before everyone else.
Fab operators come next, but with caveats. TSMC faces Taiwan tensions and higher U.S. costs, Intel has to prove it can execute, and Micron's profits can swing with the memory cycle. Qualcomm gets paid last, since it depends on chip demand from smartphone makers. Investors who can accept the caveats might consider the fab operators.
Overall, as the U.S. builds more fabs at home, toolmakers appear to be the early beneficiaries.
Investors interested in Retail - Discount Stores stocks are likely familiar with Dollar General (DG) and Ross Stores (ROST). But which of these two stocks presents investors with the better value opportunity right now?
CEO Irving Tan says demand signals from top customers keep rising
Summary
Western Digital reported non-GAAP EPS of $4.64 on $4.38 billion revenue, with non-GAAP gross margin widening to 58.1% on exabyte growth and better pricing.
Western Digital WDC reported fiscal first-quarter non-GAAP EPS of $4.64, above the analysts' consensus of $4.11, on revenue of $4.38 billion, up 55% from a year earlier and ahead of the $4.14 billion estimate. Western Digital shares fell 2.87% in premarket.
Non-GAAP gross margin widened to 58.1% from 43.9% a year earlier, and non-GAAP operating margin reached 49.1%. CFO Kris Sennesael credited robust exabyte growth and improved pricing. Free cash flow was $1.38 billion, and the company repurchased $1.0 billion of stock in the quarter. It also raised its quarterly dividend 17% to $0.175 per share.
For the fiscal second quarter, Western Digital guided revenue to $5.1 billion, plus or minus $100 million, or growth of 66% to 72% year over year, with non-GAAP gross margin of 60% to 61% and non-GAAP EPS of $5.80, plus or minus $0.20. On the earnings call, CEO Irving Tan said Western Digital has “good visibility up to 2030, 2031” across its top seven customers, and that their demand signal keeps rising quarter after quarter.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Retailers say digital shelf labels save labor and cut checkout errors, but consumer advocates warn they pave the way for dynamic pricing in brick-and-mortar stores
Digital shelf labels have been replacing paper price tags at major retailers. Photo: MarketWatch photo illustration/iStockphotoStore aisles are getting a digital makeover.
Major retailers such as Best Buy BBY, Kroger KR and Walmart WMT have begun replacing paper price tags with electronic shelf labels: a small digital screen displaying the item’s price. Walmart started rolling out the digital labels in 2024, and announced plans this year to install them across its more than 4,600 U.S. stores by the end of the year.
Cryptocurrencies and blockchain technology are reshaping financial infrastructure. Their applications extend beyond trading to digital-dollar payments, tokenized securities, credit distribution and automated settlement, potentially reducing friction in transactions traditionally handled by intermediaries.
Among others, Robinhood Markets, Inc. (HOOD - Free Report) , Circle Internet Group, Inc. (CRCL - Free Report) and Figure Technology Solutions, Inc. (FIGR - Free Report) offer distinct exposure to this transition through digital-asset investment platforms, stablecoin networks and blockchain-powered lending markets, respectively.
Institutional interest continues to support the industry's long-term potential. The 2026 Coinbase and EY-Parthenon survey of 351 institutional investors found that 86% of respondents were either using or interested in stablecoins. Meanwhile, 73% of respondents planned to increase digital-asset allocations, while 67% prioritized tokenization capabilities over the next two years. These findings suggest that institutions are increasingly looking beyond cryptocurrency investment toward the practical applications of blockchain technology.
Regulatory developments are also helping establish a clearer operating environment. On Oct. 21, 2026, the Office of the Comptroller of the Currency finalized rules implementing the GENIUS Act, covering reserve requirements, redemption, risk management and supervision of payment stablecoin issuers under its jurisdiction. The regulations will become effective on Jan. 18, 2027. Greater regulatory clarity could encourage financial institutions to expand their use of stablecoins.
For investors, lasting value will depend less on speculative trading cycles than on businesses that develop distribution advantages, attract institutional liquidity and earn fees from everyday financial workflows, though competition, cyber risks and regulatory costs remain meaningful hurdles.
If you’re looking to tap into this fast-growing trend, our Cryptocurrencies & Blockchain Thematic Screen offers a simple way to spot promising stocks in the sector. Designed with advanced analytics, the screen is an invaluable source for identifying crypto and blockchain stocks with massive growth prospects.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 Crypto & Blockchain Stocks to Watch Right NowRobinhood Markets is developing a broader digital-asset business by combining cryptocurrency trading, blockchain infrastructure and tokenized investments with its established brokerage platform. Its acquisition of Bitstamp expanded access to global cryptocurrency markets, while its growing customer base offers a distribution channel for new financial products.
A major step in its blockchain strategy came on July 1, 2026, with the public mainnet launch of Robinhood Chain, an Ethereum Layer 2 network built using Arbitrum technology. The company also introduced stock tokens through Robinhood Wallet for eligible users in more than 120 countries, subject to local availability. The offerings extend Robinhood's services into decentralized finance and tokenized securities, creating potential new sources of customer engagement.
International expansion provides further opportunities. Recently, Robinhood announced authorization from the Dubai Financial Services Authority to introduce its retail investment platform from the Dubai International Financial Centre. The company plans a 2027 launch, with its permitted offerings including cryptocurrencies and investment tokens. Its earlier acquisition of WonderFi deepens Robinhood's Canadian crypto presence. These broaden its digital-asset reach.
Robinhood currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Circle Internet Group offers exposure to the growing use of stablecoins in financial transactions. Its USDC stablecoin supports digital-asset trading, payments and settlement activities, while its infrastructure enables businesses to incorporate blockchain-based money transfers into existing operations. The company's ability to expand USDC distribution and develop additional payment applications supports long-term growth.
Arc advances Circle from stablecoin issuer toward infrastructure provider. Launched in September, the blockchain combines dollar-denominated fees, rapid finality and Circle Payments Network integration. Institutional validators and developer tools could attract payment and tokenization workflows, supporting additional platform economics.
Distribution agreements expand reach without requiring Circle to win customers individually. Binance's five-year partnership broadens USDC access, while Tereina's SAP integration brings stablecoins into corporate workflows. The proposed Tazapay acquisition could add payment corridors, subject to an anticipated 2027 closing.
Regulation strengthens the long-term thesis. Circle received approval for a national trust bank in July, potentially reinforcing institutional custody credentials as stablecoin rules mature. Wider payment applications could diversify revenues of this Zacks Rank #1 company and strengthen shareholder returns.
Figure Technology Solutions is building its presence in capital markets by applying blockchain technology to consumer lending and asset financing. Through Figure Connect, the company facilitates transactions between loan originators and institutional investors, while its on-chain lending platform, Democratized Prime, provides an additional funding mechanism.
Growth in marketplace participation could increase transaction volumes and create opportunities across different lending categories. Figure’s blockchain-based lending ecosystem has facilitated approximately $30 billion in cumulative home-equity loan originations, with more than 489 partners leveraging its technology to access lending and capital markets. Preliminary third-quarter marketplace volume exceeded $5.1 billion, up 107% annually, validating repeatable loan distribution.
Democratized Prime deepens this model by offering lenders blockchain-based financing between origination and sale. Matched offers reached $588 million at September-end, up 50% sequentially. Connecting funding with secondary-market liquidity could significantly improve capital velocity and reinforce marketplace participation.
YLDS adds a tokenized, yield-bearing security to Figure's asset platform. Circulation stood at $504 million in September. Greater adoption could improve collateral and on-chain settlement flexibility.
This Zacks Rank #1 company is also expanding into adjacent lending categories. The company completed its acquisition of Kiavi in September, strengthening its presence in residential real estate financing. Its small-business financing ecosystem funded $135 million during the third quarter, including more than $50 million in September, with annualized funding volume exceeding $500 million. These developments could broaden the range of assets traded and financed through Figure's blockchain marketplace.
Key Takeaways MED's Q3 revenues are expected to fall 23.9% to $68 million, with a projected loss of 40 cents per share.Growing GLP-1 adoption and a shrinking active coach base likely pressured MED's sales and client acquisition.MED's better client retention, coach training and Catalyst cost-saving efforts might have eased Q3 pressures.
Medifast, Inc. (MED - Free Report) prepares to unveil its third-quarter fiscal 2026 results on Oct. 26, before market open. Investors are eager to see if the company can beat market expectations.
The Zacks Consensus Estimate for revenues is pegged at $68 million, implying a 23.9% decline from the prior year. Meanwhile, the consensus mark for earnings has been unchanged at a loss of 40 cents per share in the past seven days. This indicates a substantial decline from the year-ago period’s loss of 21 cents per share. MED has a trailing four-quarter negative earnings surprise of 462.2%, on average.
Key Factors to Note for MED's Q3 EarningsMedifast is likely to have faced challenges from the growing adoption of GLP-1 medications, which have been reshaping demand across the traditional weight-loss market. The company has previously highlighted that this shift has been affecting client acquisition and coach participation. These industry dynamics, along with continued competition in the weight-management category, might have remained meaningful headwinds in the to-be-reported quarter.
The continued decline in Medifast's active earning coach base might have pressured quarterly revenues. The company has previously indicated that coach numbers are likely to remain under pressure despite improvements in productivity. A smaller coach network might have limited customer reach and sales opportunities, partly offsetting benefits from higher revenue per coach. These factors are likely to have constrained overall business performance in the third quarter.
Profitability is also likely to have remained under pressure due to lower sales volumes and reduced leverage on fixed operating costs. The company has previously noted that declining revenues might have affected its ability to absorb fixed expenses, resulting in gross margin pressure. These factors might have continued to weigh on earnings performance in the quarter, despite ongoing efforts to streamline operations and control expenses.
However, Medifast's strategic initiatives are likely to have provided some support during the quarter. The rollout of its Trilivy brand and new Reset Fuelings, alongside an enhanced coach compensation structure and training platform, might have supported coach engagement and productivity. Meanwhile, improving client retention trends and the company's Catalyst cost-saving program, focused on facility rationalization and AI-related efficiencies, might have helped mitigate some operating pressures.
What the Zacks Model Says About MEDOur proven model doesn’t conclusively predict an earnings beat for Medifast 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 not the case here.
Medifast currently has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.58% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.16, which implies a 0.9% increase year over year. The consensus estimate for Sysco’s quarterly revenues is pegged at $22.19 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.
Freshpet, Inc. (FRPT - Free Report) currently has an Earnings ESP of +1.41% and a Zacks Rank of 3. The Zacks Consensus Estimate for Freshpet’s upcoming quarter’s EPS is pegged at 36 cents, implying a 21.7% decrease from the year-ago period.
The consensus mark for Freshpet’s quarterly revenues is pegged at $309.2 million, which indicates an increase of 7% from the prior-year quarter. FRPT delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.12 per share, which implies a 63.1% increase year over year.
The consensus estimate for Hershey’s quarterly revenues is pegged at $3.25 billion, which calls for 2.3% growth from the figure reported in the prior-year quarter. HSY delivered a trailing four-quarter earnings surprise of 21.8%, on average.
Blackstone (BX -2.04%), already a behemoth in the alternative asset management sector, keeps getting bigger. However, while its assets under management (AUM) are growing, its earnings aren't necessarily following it higher in a perfectly straight line. That disconnect was on full display during the third quarter.
Here's a look at the alternative investment manager's third-quarter results and whether they're a signal to buy Blackstone stock.
Image source: The Motley Fool.
Blackstone's growth engine remains strongThere was a lot to like in Blackstone's third-quarter earnings report. AUM rose 10% to nearly $1.4 trillion, including nearly $990 billion of fee-earning AUM. Quarterly capital inflows totaled $63.3 billion, reflecting strong demand for its alternative investment products. The company also reported a 6% rise in fee-related earnings to almost $1.6 billion.
Despite strong AUM and fee-related earnings growth, Blackstone's distributable earnings fell 9% to $1.7 billion. Meanwhile, its distributable earnings per share were down 13% to $1.52. As a result, the company's dividend, which varies with earnings, declined to $1.12 per share (from $1.29 per share in the prior quarter and year-ago period). The culprit was a 34% decline in net realizations during the quarter. While the company sold assets during the period, its realized performance revenues from private equity and real estate investments were much lower compared to the third quarter of last year. That's just part of the lumpiness of its business.
The good news is that Blackstone expects that trend to reverse. On its third-quarter conference call, CFO Michael Chea stated, "We anticipate a significant step up in net realizations in the fourth quarter, including the sales of multiple companies." Meanwhile, CEO Steve Schwarzman commented on the call that "the firm's underlying earnings power continues to expand substantially and we are moving toward what we expect will be an outstanding 2027." So, while its earnings vary from period to period, the overall trend is higher.
$116.33-$2.42 (-2.04%)
NYSE · As of 1:45 PM ET 10/23/26
Is Blackstone stock a buy?While Blackstone's stock price rallied after reporting earnings, shares are currently down 28.5% from their 52-week high, trading at around $117 per share. Following the third quarter, the alternative investment giant has generated $5.95 in distributable earnings per share over the last 12 months. That has it trading at less than 20 times earnings. While that's not a screaming bargain, it's a reasonable price to pay for a leading asset manager.
It's not unreasonable to believe that Blackstone could grow its earnings at a double-digit annualized rate over the next five years. Through the first nine months of this year, its distributable earnings per share are up 10% compared to the prior-year period. It expects 2027 to be a strong year. Meanwhile, it's benefiting from multiple long-term growth drivers, like its AI investment strategy and the expansion of its private wealth and private credit platforms. If Blackstone grows its earnings at a 12% compound annual rate and its valuation multiple expands to around 23 times earnings, it could deliver 15% annualized returns over the next five years, before accounting for its dividend (4.4% trailing 12-month yield). Even slower 8% annual growth and no multiple expansion deliver a strong total return when factoring in the dividend. That's why I think Blackstone is a buy after its earnings.
However, there are downside risks to consider. Blackstone is betting heavily on AI infrastructure. If that thesis fails to play out, its returns could suffer. It's also expanding in private credit, which has had some growing pains in recent years.
A compelling investment opportunityBlackstone's latest results reinforce that its long-term growth engine remains healthy, despite near-term earnings volatility. While the stock isn't a screaming bargain, its recurring fee growth, expanding investment platform, and meaningful dividend make it an attractive option for long-term investors comfortable with the risks. If Blackstone's investment strategies deliver anything close to its historical record, the company should create significant value for shareholders over the next several years.
Key Takeaways Chipotle to report Q3 results Oct. 28, 2026, with revenues expected to rise 9.5% to $3.29 billion.Menu innovation, digital rewards, restaurant expansion and pricing are expected to support sales growth.Higher beef, freight, wage and operating costs could pressure margins, projected to fall 80 bps to 25%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28.
CMG’s earnings beat the Zacks Consensus Estimate in the trailing three out of four quarters and reported in line once, the average surprise being 2.7%.
Trend in the Estimate Revision of CMGThe Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 29 cents, flat year over year.
For revenues, the consensus mark is pegged at $3.29 billion. The metric suggests a rise of 9.5% 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 CMG’s Quarterly ResultsChipotle’s third-quarter 2026 revenues are likely to have benefited from continued menu innovation, improved restaurant execution and efforts to strengthen customer engagement. The company’s Recipe for Growth strategy focuses on driving transaction growth through better food quality, generous portions, faster service and enhanced hospitality. The return of popular limited-time offerings and investments in high-efficiency kitchen equipment are expected to have supported customer traffic and repeat visits. However, softer restaurant industry trends and cautious consumer spending might have limited the extent of sales growth.
Menu innovation is likely to have remained an important revenue driver for Chipotle in the third quarter. The successful return of Chipotle Honey Chicken, along with sustained demand for Cilantro Lime Sauce, has helped attract new customers and encouraged existing guests to visit more frequently. The company has also been emphasizing high-protein offerings to capitalize on consumer interest in protein-rich meals.
Chipotle’s refreshed marketing strategy, including culturally relevant promotions and the Matchday BOGO campaign, has helped strengthen brand engagement. Further, the company's focus on communicating the quality of its ingredients and the value of the offerings might have supported customer acquisition and spending.
Chipotle’s digital initiatives and restaurant expansion are also likely to have contributed to third-quarter sales. The revamped Rewards program, personalized offers and Summer of Extras campaign are expected to have encouraged repeat purchases and improved customer frequency. Efforts to simplify loyalty enrollment and enhance digital ordering might have further strengthened engagement.
Meanwhile, the rollout of its high-efficiency equipment package (“HEEP”) has been improving kitchen productivity, order fulfillment and service speed, potentially allowing restaurants to serve more customers during peak periods. New restaurant openings, including locations equipped with Chipotlanes, are likely to have supported overall revenue growth. In addition, gradual menu price increases are expected to have provided a further lift to sales. Our model predicts Food and Beverage as well as Delivery Service revenues to increase 8.5% and 10.5% year over year.
Chipotle’s third-quarter 2026 bottom line is likely to have received support from higher menu prices, improved restaurant throughput and operating efficiencies associated with HEEP. Management expects pricing to contribute in the mid-2% range during the quarter, helping offset some inflationary pressure.
However, elevated beef, freight and other ingredient costs, along with wage inflation, might have weighed on restaurant-level margins. Higher marketing investments, insurance, maintenance and utility expenses are also likely to have pressured profitability. Management anticipated restaurant-level operating costs to remain elevated, with other operating costs expected in the mid-15% range.
Additionally, tougher year-over-year comparisons, consumer caution and the potential sales impact of the cyclospora-related industry concerns might have constrained operating leverage. Thus, although pricing and operational improvements might have provided some relief, persistent cost pressures are likely to have remained a challenge for margins.
Our model predicts third-quarter restaurant-level margins to decline 80 basis points year over year to 25%.
What Our Model Says About CMG StockOur proven model does not predict an earnings beat for Chipotle 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 not the case here.
Earnings ESP for CMG: Chipotle has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chipotle’s Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks With the Favorable CombinationHere are some stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Starbucks Corporation (SBUX - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, SBUX’s earnings are expected to increase 40.4% year over year. SBUX’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.4%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +4.26% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 3.7% year-over-year decline. SG’s earnings lagged estimates in each of the trailing four quarters, with the average miss being 43%.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.59% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 29% year-over-year increase. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.2%.
Parabolic runs in some AI stocks, paired with mounting geopolitical uncertainty, leads Tim Bohen (@Stockstotrade) to urge investor caution and "dial things back" until volatility cools. He turns to three stocks he sees weathering the sharp market moves.
Index Dow Jones klesá o 1,18 % na 52242,92 bodu, S&P 500 oslabuje o 0,45 % na 7628,67 bodu a Nasdaq Composite odepisuje 0,11 % na 25980,86 bodu. Hlavním důvodem nepříznivé nálady je opětovný růst cen ropy, který vyvolává obavy z inflace před nadcházejícím rozhodnutím americké centrální banky o úrokových sazbách.
Z jednotlivých odvětví indexu S&P 500 nejvýrazněji rostou energie s přírůstkem 2,4 % a informační technologie, které přidávají 0,4 %. Naopak největší ztráty zaznamenává nezbytná spotřeba se poklesem o 1,9 %, finanční sektor klesající o 1,4 % a zbytná spotřeba se ztrátou 1,2 %. Zbytek trhu se drží blízko nuly, přičemž reality odepisují 0,1 %.
Na pole nejsilnějších jednotlivých titulů patří Crown Castle (CCI) se skokem o 10,0 %, následovaný SLB (SLB) se ziskem 6,8 %, Palo Alto Networks (PANW) s růstem o 6,3 %, Crowdstrike Holdings (CRWD) posilující o 6,0 % a Datadog (DDOG), který si připisuje 5,3 %. Na opačné straně výsledkové listiny ztrácí nejvíce Bloom Energy Corp (BE), jehož akcie padají o 13 %, Comfort Systems USA (FIX) odepisuje 9,3 %, Globe Life (GL) klesá o 8,2 %, AT&T (T) ztrácí 6,4 % a T-Mobile US (TMUS) odepisuje 6,2 %. V korporátním světě se pozornost věnuje také společnosti SpaceX, jež jedná o zajištění mobilních vysílačů po celých USA, Apple Inc. (AAPL), který rychle vyprodal zásoby nového skládacího telefonu iPhone Duo, nebo American Express Co. (AXP), jež plánuje propustit 5 % zaměstnanců.
Rostoucí ceny ropy nepříznivě ovlivňují i dluhopisový trh. Výnos desetiletých amerických vládních dluhopisů stoupá o čtyři bazické body na 4,99 %. Ropa WTI zpevňuje o 3,4 % na 102,86 USD za barel a severomořský Brent posiluje o 2,4 % nad 115 USD za barel. Naopak zlato oslabuje o 0,6 % na 4001,22 USD za trojskou unci. Euro klesá vůči americkému dolaru o 0,2 % na 1,1193 USD a britská libra ztrácí 0,2 % na 1,3369 USD. Kryptoměny mírně rostou, bitcoin přidává 0,5 % na 81594,59 USD.
Index Dow Jones -1,18 % na 52242,92 b.
S&P 500 -0,45 % na 7628,67 b.
Nasdaq Composite -0,11 % na 25980,86 b.
Index S&P 500 -0,45 % na 7628,67 b.
Nejsilnější sektory S&P
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Nejslabší sektory S&P
Změna
Energie
+2,4 %
Nezbytná spotřeba
-1,9 %
Informační technologie
+0,4 %
Finanční sektor
-1,4 %
Reality
-0,1 %
Zbytná spotřeba
-1,2 %
Nejsilnější akcie S&P
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Nejslabší akcie S&P
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Gentex Corp (NASDAQ:GNTX) stock fell about 6% on Friday after the company reported weaker-than-expected third-quarter results, with earnings and revenue missing Wall Street expectations.
Miso Robotics stock: Is an IPO coming soon?Gentex NASDAQ: GNTX reported third-quarter 2026 net sales of $647.7 million, down from $655.2 million a year earlier, as customer issues and delayed product launches caused revenue to fall about $35 million below the company’s beginning-of-quarter forecast.
Net income attributable to Gentex declined to $90.6 million from $101 million in the prior-year quarter, while diluted earnings per share fell to $0.43 from $0.46. On an adjusted basis, net income was $97.8 million, compared with $103.7 million a year earlier, while adjusted diluted EPS was unchanged at $0.47.
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Analysts Recommend These Stocks To Cushion The Automotive Slump“Automotive unit performance was generally in line with our expectations,” President and CEO Steve Downing said. “But revenue came in approximately $35 million below our beginning of quarter forecast due to certain customer issues and delayed launches.”
Automotive headwinds offset content gains
Automotive net sales were $552.5 million, compared with $573.7 million in the third quarter of 2025. The company cited discrete headwinds from lower business in China and the loss of a Volkswagen program. Excluding those items, automotive revenue increased about 2% despite a more than 2% decline in global light-vehicle production, according to management.
In North America, automotive revenue rose about 3% despite a 5% decline in regional light-vehicle production. In Europe, revenue excluding the Volkswagen program loss increased approximately 13%, aided by favorable product mix and higher electronic content per vehicle.
During the question-and-answer session, Downing said automotive unit shipments declined by roughly 1 million units year over year, with most of that reduction tied directly to China and the Volkswagen loss. He said growth in other regions and increased vehicle content helped offset those declines.
Management also pointed to launch timing and a Hyundai Kia labor strike as contributors to the quarterly revenue shortfall. Downing said the strike reduced Gentex production by an estimated 60,000 to 70,000 units during the quarter and disproportionately affected launches involving driver-monitoring systems, in-cabin monitoring systems and Full Display Mirror products.
Non-automotive revenue grows
Non-automotive revenue increased approximately 17% and represented 15% of total company revenue, up from 12% a year earlier. Premium audio revenue climbed 27% to $54.7 million, led by increased sales of home separates and systems products, including Reference Premiere speakers, Flexus products and other systems offerings.
Revenue from the company’s other products category rose 5% to $40.5 million. Aerospace revenue increased 135% and fire-protection revenue rose 36%, partly offset by lower aftermarket and accessory sales.
Chief Operating Officer and Chief Technology Officer Neil Boehm said advanced automotive features accounted for more than 80% of launches during the quarter. These included Full Display Mirror, in-cabin monitoring, HomeLink and advanced feature OEC mirrors.
Gentex remains on track to increase Full Display Mirror unit shipments by 200,000 to 400,000 units in 2026 from 2025 levels, Boehm said. The company also reiterated a target of $80 million to $100 million in 2027 revenue from driver-monitoring and in-cabin monitoring systems.
The company’s first Dimmable Visor program remains scheduled for fourth-quarter 2027 start of production. Gentex said it is working with other original equipment manufacturers on product design and testing in pursuit of additional awards. Its large-area device technology is also progressing toward a production-ready product, according to management.
Margins pressured by commodity and electronics costs
Third-quarter gross margin was 33.4%, down from 34.4% a year earlier. Gentex attributed the decline to higher precious-metals costs, unfavorable product mix and lower operating leverage stemming from sales that fell short of expectations.
Adjusted operating expenses declined to $97.5 million from $101.8 million, excluding impairment, acquisition-related and severance costs. Adjusted income from operations was $118.8 million, compared with $123.4 million in the prior-year period.
Downing said the company faces substantial cost pressure in certain electronic components, particularly DDR memory, as well as raw printed circuit boards. He said some component prices being quoted by suppliers were eight to 10 times higher than earlier in the year. Gentex expects to pursue customer reimbursement for electronics inflation while also redesigning products to reduce costs.
“The electronics piece is pretty cut and dry,” Downing said, referring to the recovery process. “It is just about timing of getting that back.” He added that precious-metals inflation can be more difficult to recover.
The company said it was generally secure on supply through year-end and for most requirements through the midpoint of 2027, though DDR memory and raw printed circuit boards remain areas of concern. Gentex has increased inventory holdings in part to secure components, management said.
Guidance updated; 2027 outlook maintained
Gentex updated its full-year 2026 outlook, now expecting consolidated revenue of approximately $2.65 billion. The company forecasts gross margin between 34% and 34.5%, including an estimated $10 million to $15 million of incremental fourth-quarter cost increases that it does not expect to recover until the first half of 2027.
Operating expenses, excluding severance and impairments: $395 million to $410 million
Effective tax rate: 16% to 16.5%
Capital expenditures: $100 million to $115 million
Depreciation and amortization: $100 million to $105 million
Despite lowering its 2026 revenue expectation, Gentex maintained its 2027 revenue outlook of $2.8 billion to $2.9 billion. That range represents 6% to 9% growth from the updated 2026 forecast, even as light-vehicle production in Gentex’s primary markets of North America, Europe and Japan/Korea is expected to decline about 1%.
The outlook is supported by anticipated growth in Full Display Mirror, driver-monitoring and in-cabin monitoring products, as well as an expected contribution from Alpine distribution following a deal announced by the company’s VOXX business, according to Downing.
Gentex also announced its first printed circuit board assembly, or PCBA, business award during the quarter. Downing said the award came from an existing automotive customer, is expected to begin production in 2029 and represents roughly $180 million in annualized revenue.
On capital allocation, Gentex repurchased 5.7 million shares during the third quarter for $132.6 million, at an average price of $23.44 per share. Through the first nine months of 2026, the company repurchased 11.6 million shares for $270.2 million. Approximately 24.3 million shares remained authorized for repurchase as of Sept. 30.
About Gentex (NASDAQ:GNTX)Gentex Corporation NASDAQ: GNTX is a technology manufacturer headquartered in Zeeland, Michigan. Founded in 1974, the company develops products primarily for the automotive industry, along with selected applications in the aerospace and fire-protection markets.
Gentex is best known for its automatic-dimming rearview and side-view mirrors, which use electrochromic technology to reduce glare. Its automotive product portfolio also includes camera-based driver-assistance systems, digital vision and sensing technologies, connected-car products, overhead console systems, and HomeLink universal garage-door and home-control systems.
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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Investors with an interest in Retail - Home Furnishings stocks have likely encountered both Alliance Laundry Holdings (ALH) and Williams-Sonoma (WSM). But which of these two stocks is more attractive to value investors?
Watsco (WSO - Free Report) shares ended the last trading session 7.2% higher at $327.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% loss over the past four weeks.
Watsco shares appreciated after the company announced a new five-year, $750 million revolving credit facility, providing greater financial flexibility to support working capital needs, acquisitions and dividends. Fundamentally, Watsco is benefiting from its extensive HVAC distribution network, acquisitions that expand its geographic reach and continued growth in e-commerce sales.
This heating and cooling company is expected to post quarterly earnings of $4.13 per share in its upcoming report, which represents a year-over-year change of +3.8%. Revenues are expected to be $2.21 billion, up 7.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Watsco, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WSO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Watsco belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, RBC Bearings (RBC - Free Report) , closed the last trading session 5.2% lower at $478.03. Over the past month, RBC has returned 0.9%.
RBC Bearings' consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $3.55. Compared to the company's year-ago EPS, this represents a change of +23.3%. RBC Bearings currently boasts a Zacks Rank of #4 (Sell).
Capital One Financial is rated Buy at $202, driven by long-term value from the Discover acquisition and synergy potential. COF's Q3 results were strong, but normalized provisions and credit losses remain key risks, especially in a downturn. The Discover network integration offers cost savings and revenue upside, though interchange fee litigation and international acceptance pose headwinds.
3 Nimble Free Cash Flow Names With Light AssetsKinsale Capital Group NYSE: KNSL reported third-quarter results marked by higher operating earnings, strong underwriting profitability and increased investment income, even as competition in the excess and surplus, or E&S, insurance market pressured written premiums—particularly in commercial property.
Diluted operating earnings per share increased 9.4% from the prior-year quarter, while diluted GAAP earnings per share declined 28.4%. Chris Tangard, Kinsale’s senior vice president and chief accounting officer, said the decline in GAAP earnings primarily reflected losses from sales of fixed-maturity investments as the company repositioned its portfolio.
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Accelerant’s Take-Private Deal Raises a Bigger Question for Insurance StocksKinsale reported an annualized operating return on equity of 25.6% through the first nine months of 2026, while annualized return on equity was 26.6%. Its quarterly combined ratio was 75.4%, compared with 74.9% a year earlier. The loss ratio improved to 53.4% from 53.9%, aided largely by favorable prior-year development, while the expense ratio rose to 22% from 21%.
Premium Declines Reflect Large-Account Competition
Gross written premium declined 4.8% during the quarter and net written premium fell 1.5%. Management said intense competition in commercial property, especially in larger shared and layered accounts, weighed on growth. Excluding the commercial property division, gross written premium was down 0.5%.
Update! What Is Congress Trading So Far In 2025? Despite the premium decline, the company said submissions, quotes and bind orders increased at a mid-single-digit rate. New-business submission growth was 6%, and was 10% excluding commercial property. Stuart Winston, executive vice president and chief underwriting officer, said more than half of Kinsale’s underwriting divisions recorded double-digit submission growth.
Management characterized the results as a mix shift toward smaller accounts rather than a broader deterioration in activity. Mike Kehoe said only about 0.7% of policies had premiums of $100,000 or more, but those policies represented roughly 12% of overall premium. He said Kinsale has seen lower new-business hit rates and renewal retention among larger accounts, where competitors have offered sharply lower pricing.
“We will not chase business where the economics do not make sense,” Winston said, adding that the company remains focused on small and medium-sized accounts.
Winston said the E&S market remained soft during the quarter across commercial property and certain long-tail casualty lines. However, Kinsale identified growth opportunities in agribusiness, casualty, commercial auto, entertainment, ocean marine and environmental businesses, which each posted double-digit growth. The company also cited favorable underwriting conditions in excess casualty, allied health, products liability, healthcare, energy and agribusiness property.
Pricing, Reserves and Underwriting Discipline
Management said Kinsale continues to manage its lines of business to generate a return on equity of 20% or more. Salmaan Allibhai, chief analytics and technology officer, said pricing trends differed by division and that loss-cost trends in some business lines were running slightly ahead of rate changes. Still, he said the company believes its existing margins support its underwriting approach.
The company’s combined pricing trend was in line with the Amwins pricing index, which showed a 3.1% decline during the third quarter, compared with a 5.9% decline in the second quarter. Winston said commercial property remains under substantial rate pressure, while commercial auto, excess casualty and entertainment offer opportunities for rate increases.
Allibhai said favorable prior-year reserve development was concentrated disproportionately in shorter-tail lines, including property and some shorter claims-made business. Management said it continues to reserve cautiously in long-tail casualty lines, citing the potential for uncertainty in the U.S. tort system and the effects of inflation.
Kinsale expects the impact of catastrophe activity during the quarter to be immaterial, Winston said.
Investment Portfolio Repositioning Lifts Future Yield
Tangard said Kinsale sold certain fixed-maturity securities yielding less than 2% and reinvested approximately $130 million in bonds yielding more than 5.5%. The company also invested about $100 million in higher-conviction equity securities.
The bond sales resulted in a net pretax earnings impact of $37.6 million, or $1.67 per diluted share, during the quarter. Tangard said the transactions did not affect book value. Excluding the investment-related effects, diluted operating earnings per share were $5.70.
Net investment income rose 17.5% to $58.3 million, supported by a larger invested asset base and higher interest rates. Kinsale’s float increased to $3.5 billion as of Sept. 30, from $3.1 billion at the end of 2025. New-money yields averaged above 5%, while the fixed-maturity portfolio had an average duration of 4.4 years.
Capital Returns and Technology Initiatives
Kinsale repurchased 269,000 shares for $100 million during the third quarter, an amount Tangard said represented just under 80% of quarterly net operating earnings. The company spent the same amount on repurchases in the second quarter, up from $62.5 million in the first quarter. Tangard said management expects $100 million to be a suitable quarterly repurchase run rate for the remainder of its current authorization, while remaining opportunistic.
The company’s capital-allocation priorities are funding growth in its insurance operations, returning excess capital through repurchases and paying a modest dividend. Tangard said Kinsale has no interest in mergers and acquisitions and that debt represented approximately 10% of total capitalization.
Management also emphasized the role of its proprietary technology and analytics systems in supporting underwriting efficiency. Allibhai said Kinsale maintains all 17 years of company data in one database and uses third-party data, generalized linear models and other machine-learning tools to improve pricing segmentation.
He said the company uses more than 100 artificial intelligence agents and skills for activities including submission processing, underwriting, analytics, claims intake and correspondence. Management said technology investments have supported rapid broker response times and helped maintain a low operating expense base, with other underwriting expenses flat at 10.2% of net premiums earned during the quarter.
About Kinsale Capital Group (NYSE:KNSL)Kinsale Capital Group, Inc is a specialty insurance company headquartered in Richmond, Virginia. Through its insurance subsidiaries, the company focuses primarily on the excess and surplus lines market, providing coverage for risks that may be difficult to insure through standard commercial insurance channels.
Kinsale offers a range of commercial property and casualty products, including coverage for commercial property, general liability, professional liability, inland marine, commercial auto, workers' compensation and other specialty risks.
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].
Should You Invest $1,000 in Kinsale Capital Group Right Now?Before you consider Kinsale Capital Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kinsale Capital Group wasn't on the list.
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Key Takeaways KNSL's Q3 operating earnings up 9.4% to $5.70 per share, beating estimates, despite lower revenues.Net investment income rose 17.5% to $58.3 million, while underwriting income rose 1.3% to $107.1 million.KNSL's GWP fell 4.8% amid property competition, while the combined ratio worsened to 75.4%. Kinsale Capital Group, Inc. (KNSL - Free Report) reported third-quarter 2026 net operating earnings of $5.70 per share, which surpassed the Zacks Consensus Estimate by 15.15%. The bottom line increased 9.4% year over year.
Total revenues declined 8.6% year over year to $454.8 million, missing the Zacks Consensus Estimate by 5.02%.
The quarterly results benefited from higher net earned premiums, increased net investment income and favorable prior-year reserve development. However, these gains were partially offset by lower gross written premiums, higher underwriting expenses and investment-related losses.
KNSL’s Operational UpdateGross written premiums decreased 4.8% year over year to $462.9 million, primarily due to heightened competition in the property divisions. Net written premiums declined 1.5% year over year to $$399.1 million.
Net investment income increased 17.5% year over year to $58.3 million. The increase was primarily driven by growth in the company's investment portfolio, supported by the investment of strong operating cash flows. However, net investment income missed the Zacks Consensus Estimate by 2.7%.
Total expenses increased 3.9% year over year to $331.2 million. This was primarily due to higher underwriting, acquisition and insurance expenses, interest expense and other operating expenses. Our model estimate was pegged at $341 million.
Kinsale Capital's underwriting income was $107.1 million, up 1.3% year over year. The increase was driven by growth in net earned premiums and higher favorable development of loss reserves from prior accident years, partially offset by lower ceding commissions. Underwriting income surpassed our model estimate of $74 million.
The combined ratio deteriorated 50 basis points (bps) year over year to 75.4% compared with the Zacks Consensus Estimate of 75.3. The loss ratio improved 50 bps to 53.4%, reflecting favorable reserve development. However, the expense ratio deteriorated 100 bps year over year to 22%, primarily due to lower ceding commissions.
KNSL’s Financial UpdateKinsale Capital exited the third quarter of 2026 with cash and cash equivalents of $160.5 million, down 1.7% from the 2025-end level.
As of Sept. 30, 2026, stockholders' equity decreased 2.1% from the 2025-end level to approximately $1.92 billion.
Book value per share was $85.25, up 0.7% from the 2025-end level.
Annualized operating return on equity deteriorated 100 bps year over year to 26% in the reported quarter.
KNSL’s Capital DeploymentKNSL repurchased 0.27 million shares for $100 million in the third quarter of 2026. As of Sept. 30, 2026, the company had $237.5 million remaining under its share repurchase authorization.
KNSL paid a cash dividend of 25 cents per share in the third quarter of 2026.
KNSL’s Zacks RankKNSL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersChubb Limited (CB - Free Report) reported third-quarter 2026 core operating earnings of $7.66 per share, which beat the Zacks Consensus Estimate of $6.53 by 17.3%. The bottom line increased 0.8% year over year. Revenues of $16.81 billion surpassed the consensus mark of $16.7 billion by 0.6%. Consolidated net premiums written increased 1.9% year over year to $15.14 billion, or 1.8% in constant dollars. The Zacks Consensus estimate is pegged at $15.11 billion. P&C underwriting income declined 8.8% year over year to $2.06 billion. The combined ratio deteriorated 230 basis points to 84.1%, reflecting higher catastrophe losses and weaker underwriting margins in certain commercial businesses. The Zacks Consensus Estimate is pegged at 87.
The Travelers Companies, Inc. (TRV - Free Report) reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. TRV’s combined ratio improved 50 basis points year over year to 86.8%, reflecting stronger reserve development, partially offset by higher catastrophe losses. The underlying combined ratio deteriorated 20 basis points to 84.1%, while underlying underwriting income reached $1.74 billion pre-tax. The Zacks Consensus Estimate for combined ratio was pegged at 92.
W.R. Berkley Corporation (WRB - Free Report) reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%. W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion, driven by growth in the Insurance segment. The combined ratio, a measure of underwriting profitability, improved 10 bps to 90.8%. Our estimate was pegged at 92.8%, while the Zacks Consensus Estimate was pegged at 90.95%.
Berkshire Hathaway has rallied as investors rotate out of technology and other AI plays into defensive groups like consumer stocks, real estate, and utilities.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lincoln National (LNC - Free Report) , which belongs to the Zacks Insurance - Life Insurance industry, could be a great candidate to consider.
When looking at the last two reports, this insurance and retirement business has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.92%, on average, in the last two quarters.
For the last reported quarter, Lincoln National came out with earnings of $2.24 per share versus the Zacks Consensus Estimate of $2 per share, representing a surprise of 12.00%. For the previous quarter, the company was expected to post earnings of $1.63 per share and it actually produced earnings of $1.66 per share, delivering a surprise of 1.84%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Lincoln National lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Lincoln National has an Earnings ESP of +0.31% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 5, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Investors with an interest in Banks - Major Regional stocks have likely encountered both KeyCorp (KEY - Free Report) and Northern Trust Corporation (NTRS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, KeyCorp has a Zacks Rank of #2 (Buy), while Northern Trust Corporation has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KEY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KEY currently has a forward P/E ratio of 11.41, while NTRS has a forward P/E of 14.15. We also note that KEY has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NTRS currently has a PEG ratio of 0.94.
Another notable valuation metric for KEY is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTRS has a P/B of 2.43.
These metrics, and several others, help KEY earn a Value grade of B, while NTRS has been given a Value grade of F.
KEY stands above NTRS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KEY is the superior value option right now.
Key Takeaways PPL upgrades transmission and distribution networks to improve reliability and meet rising power demand.PPL plans to invest $23 billion through 2029, targeting 10.3% annual rate-base growth.
PPL's grid upgrades and data center pipeline support capacity expansion and earnings growth.
PPL Corporation (PPL - Free Report) is modernizing its transmission and distribution network to improve grid reliability, reduce outages and accommodate rising electricity demand. The company is making strategic infrastructure investments to support growing power needs and strengthen long-term system performance.
Recently, PPL subsidiary Rhode Island Energy announced an $8.2 million project in Middletown to replace 65 aging wooden transmission structures with steel monopoles. The project aims to improve grid reliability, extend the life of critical electric assets and reduce long-term maintenance requirements.
PPL unit PPL Electric Utilities was selected to receive up to $71.5 million in U.S. Department of Energy funding for its Montour Grid Resilience and Advanced Reconductoring Project. The initiative will modernize 29.3 miles of existing transmission lines using advanced conductors and grid-monitoring technology, enhancing transmission capacity and reliability while helping manage infrastructure investment costs.
The company plans to invest $23 billion through 2029, including $8 billion for transmission and $7.2 billion for distribution infrastructure. The program focuses on system hardening, smart-grid technology, automation and network expansion. PPL expects these investments to drive 10.3% average annual rate-base growth and support 6-8% annual earnings per share (EPS) growth through 2029.
Meanwhile, rising demand from the data center pipeline and economic development across PPL’s service territories create opportunities for additional electricity demand. Modernizing existing infrastructure can help accommodate this growth while improving operational efficiency.
Overall, PPL’s infrastructure upgrades and substantial capital spending support grid reliability, capacity expansion and long-term earnings growth.
Grid Upgrades Strengthen Utilities’ Growth ProspectsGrid modernization enables utilities to improve operational efficiency and ease transmission congestion. These upgrades support renewable integration, expand rate bases and strengthen long-term earnings growth prospects. PPL is not alone in prioritizing grid modernization, as other utilities are investing heavily to strengthen infrastructure and reliability.
FirstEnergy Corp. (FE - Free Report) Energize365 program focuses on transmission and distribution upgrades, backed by $36 billion in planned investments through 2030, including more than $19 billion for transmission.
Eversource Energy (ES - Free Report) continues investing in grid modernization, with $26.5 billion planned through 2030, including $7.24 billion for transmission and $11.24 billion for electric distribution.
The Zacks Rundown on PPLPPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.77%, respectively.
Image Source: Zacks Investment Research
Debt to CapitalPPL's debt-to-capital currently stands at 57.46%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 9.1% compared with the industry’s 9% growth.
FMC shareholders suffered a roughly 31%–46% share-price decline after the Company slashed its Q3 2026 revenue outlook by approximately 89% at the midpoint. An investigation concerns potential securities law violations connected to the Company's securities offering disclosures.
, /PRNewswire/ -- FMC Corporation (NYSE: FMC) shares fell approximately 31%–46% after the Company disclosed in a Form 8-K that it had slashed its Q3 2026 revenue outlook from $840–$900 million to $65–$125 million. If you lost money on FMC stock, you have legal rights and should act now. Investors who suffered losses are encouraged to submit their loss details for review. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
At the midpoint, FMC's projected quarterly revenue fell from $870 million to $95 million, a decline of approximately 89%. Adjusted EBITDA guidance shifted from a $120 million–$140 million profit to a $510 million–$565 million loss, representing an adverse swing of $630 million–$705 million in a single quarter.
FMC reported Q2 2026 revenue of $867.1 million. The high end of its revised Q3 outlook, $125 million, is just 14% of that amount. The Company's previous Q3 revenue forecast of $840 million to $900 million was issued alongside its second-quarter results on July 29–30, 2026. Levi & Korsinsky is investigating potential securities law violations on behalf of FMC investors who suffered losses.
FMC investors who lost money following the outlook reset can request a confidential review of their losses or call (212) 363-7500.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the FMC Investigation
Q: How much did FMC stock drop?A: Shares fell approximately 31% to 46% after the Company disclosed, in a Form 8-K, a revised third-quarter 2026 outlook of $65 million to $125 million in revenue and an Adjusted EBITDA loss of $510 million to $565 million. Investors who purchased shares at allegedly inflated prices and suffered losses may be eligible to seek compensation.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether FMC Corporation made materially false or misleading statements regarding its third-quarter 2026 outlook. This includes guidance issued on July 29-30, 2026, for revenue of $840 million to $900 million and Adjusted EBITDA of $120 million to $140 million. When the Company disclosed a revised outlook of $65 million to $125 million in revenue and an Adjusted EBITDA loss of $510 million to $565 million, the stock price declined sharply.
Q: Who is eligible to participate in the FMC investigation?A: Investors who purchased FMC stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do FMC investors need to do right now?A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible to participate in the investigation.
Q: What documents do I need to participate?A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my FMC shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought FMC and sold at a loss may still participate in the investigation.
Q: What if my FMC losses are small -- is it still worth contacting a lawyer?A: Yes. There is no minimum loss amount required to participate in the investigation.
Q: What does it cost me to participate?A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in any resulting action, these matters are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
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Key Takeaways Sterling leads EMCOR with faster earnings growth, a lower valuation and stronger year-to-date stock gains.Sterling's backlog surged 116% to $4.33 billion, while its 2026 EPS is projected to grow 84%.STRL trades at 15.09X forward earnings versus EMCOR's 18.13X, with a slightly higher ROIC of 28.86%. Sterling Infrastructure, Inc. (STRL - Free Report) and EMCOR Group, Inc. (EME - Free Report) are prominent players in the U.S. infrastructure and construction services market, benefiting from rising investments in data centers, advanced manufacturing and mission-critical facilities. Both companies are capitalizing on infrastructure modernization, expanding project pipelines and growing demand for specialized construction services.
Sterling focuses on E-Infrastructure, Transportation and Building Solutions, while EMCOR specializes in electrical and mechanical construction, industrial infrastructure and building services. Despite their different operating models, both are positioned to benefit from long-term infrastructure spending. With third-quarter 2026 earnings approaching, comparing their growth prospects, profitability, valuations and earnings expectations is particularly relevant.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Sterling StockSterling continues to benefit from accelerating demand for mission-critical infrastructure, particularly data centers, semiconductor facilities and advanced manufacturing projects. Its E-Infrastructure Solutions business remains the primary growth engine, supported by strong organic expansion and strategic acquisitions.
In second-quarter 2026, Sterling's revenues surged 90% year over year to $1.17 billion, including approximately 50% organic growth. Adjusted earnings per share (EPS) increased 116% to $5.80, while adjusted EBITDA rose 104% to $256.7 million, reflecting strong execution and favorable project mix.
E-Infrastructure revenues increased 192%, supported by robust site development activity and contributions from the CEC and Stone Ridge acquisitions. Mission-critical projects accounted for 92% of the E-Infrastructure backlog, highlighting Sterling's increasing exposure to high-growth markets.
Sterling's signed backlog reached $4.33 billion, up 116% year over year, while combined backlog surged 150% to $5.62 billion. Including future-phase opportunities, the company's visible pool of potential work exceeded $7 billion, providing substantial multiyear growth visibility.
Supported by this momentum, Sterling raised its 2026 revenue guidance to $4-$4.15 billion and adjusted EPS guidance to $19.70-$20.30. The company is increasingly reallocating resources toward higher-margin E-Infrastructure projects, strengthening its profitability outlook.
However, challenges remain. Transportation Solutions revenues declined 20% in the second quarter, reflecting strategic resource reallocation, while Building Solutions revenues slipped 1% amid housing affordability pressures. Integration risks associated with acquisitions, project concentration and potential execution delays could also affect growth.
The Case for EMCOR StockEMCOR continues to capitalize on robust demand for electrical and mechanical construction services, particularly across data centers, manufacturing facilities, healthcare and institutional infrastructure. Its diversified operations, strong project execution and expanding backlog support sustained growth.
Second-quarter 2026 revenues increased 19.8% year over year to $5.15 billion, driven by 19.6% organic growth. EPS climbed 34.8% to $9.06, while operating income advanced 31.8% to $547.3 million. Operating margin expanded 100 basis points to 10.6%.
U.S. Electrical Construction revenues increased 24%, while U.S. Mechanical Construction revenues advanced 31.1%, reflecting strong demand for complex infrastructure projects. Building Services and Industrial Services also registered revenue growth, highlighting EMCOR's diversified demand base.
EMCOR's remaining performance obligations reached a record $17.14 billion, up 43.9% year over year, providing considerable revenue visibility. Its capabilities in prefabrication, virtual design and construction and skilled labor management further strengthen execution efficiency.
Management raised its 2026 revenue guidance to $20-$20.5 billion and EPS guidance to $32-$33.25. Strategic acquisitions and continued investment in specialized construction capabilities are expected to support future expansion.
Nonetheless, EMCOR faces challenges from skilled labor shortages, rising material costs, project execution risks and potential delays in customer spending. Its expanding acquisition portfolio also introduces integration risks. Moreover, maintaining recent margin improvements could become difficult if unfavorable project mix or cost pressures intensify.
STRL Outpaces EME in Year-to-Date Share Price PerformanceSterling shares have gained 21.7% year to date (YTD), outperforming EMCOR's 7.9% increase. Both stocks have exceeded the broader Zacks Construction sector's 5.4% decline. However, while Sterling has outperformed the S&P 500's 12.7% gain, EMCOR has lagged the benchmark. Other infrastructure companies, including Comfort Systems USA (FIX - Free Report) and Quanta Services (PWR - Free Report) , also compete for opportunities arising from rising infrastructure investments and expanding demand for mission-critical projects.
Sterling's stronger share price performance reflects greater investor confidence in its accelerated earnings growth, expanding backlog and increasing exposure to high-margin infrastructure projects.
STRL vs EME Price Performance (YTD)
Image Source: Zacks Investment Research
STRL Stock Offers a More Attractive ValuationOn a forward 12-month price-to-earnings (P/E) basis, Sterling trades at 15.09X, below EMCOR's 18.13X and the Zacks Construction sector's 16.99X.
Sterling's discounted valuation appears attractive considering its faster projected earnings growth and strong infrastructure demand. EMCOR's premium valuation suggests greater expectations for continued execution and profitability, potentially limiting upside if growth moderates.
STRL vs EME Valuation (P/E F12M)
Image Source: Zacks Investment Research
Both companies demonstrate strong capital efficiency. Sterling's trailing 12-month return on invested capital (ROIC) stands at 28.86%, marginally exceeding EMCOR's 28.24%. This suggests both generate attractive returns on invested capital, though Sterling holds a slight edge.
Sterling's combination of a lower earnings multiple, faster growth and marginally higher ROIC strengthens its relative investment appeal.
ROIC TTM (%)
Image Source: Zacks Investment Research
EPS Estimates Favor Sterling's Growth OutlookOver the past 60 days, the Zacks Consensus Estimate for Sterling's 2026 EPS has remained unchanged at $20.02, implying 84% year-over-year growth. The consensus revenue estimate suggests 65.7% growth.
For 2027, Sterling's EPS estimate has increased to $25.80, indicating 28.9% growth on projected revenue growth of 19.5%. The upward estimate revision reinforces confidence in its earnings outlook.
Sterling's EPS Estimate
Image Source: Zacks Investment Research
Meanwhile, the Zacks Consensus Estimates for EMCOR's 2026 and 2027 EPS have remained unchanged at $32.98 and $37.23, respectively, over the past 60 days. EMCOR's 2026 estimates indicate 27.5% EPS growth on 19.6% revenue growth. For 2027, earnings are projected to increase 12.9%, supported by 11% revenue growth.
EMCOR’s EPS Estimate
Image Source: Zacks Investment Research
Although both companies are expected to maintain earnings growth, Sterling's substantially stronger projections and positive 2027 estimate revision give it an advantage.
STRL or EME: Which Stock Is the Better Buy Now?Both Sterling and EMCOR benefit from strong infrastructure demand, expanding backlogs and exposure to mission-critical construction markets. EMCOR's diversified business model, substantial project pipeline and consistent profitability support its long-term prospects.
However, Sterling appears to offer better upside potential at current levels, supported by faster projected revenue and earnings growth, a more attractive valuation, stronger share price performance and slightly higher ROIC.
Sterling's growing E-Infrastructure exposure and upward 2027 EPS estimate revision further strengthen its investment case.
Importantly, Sterling currently carries a Zacks Rank #2 (Buy) compared with EMCOR's Zacks Rank #4 (Sell). Considering these factors, Sterling emerges as the more compelling investment choice for investors seeking exposure to infrastructure growth.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York, New York--(Newsfile Corp. - October 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against The Ensign Group, Inc. (NASDAQ: ENSG) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Ensign securities between February 10, 2022 and June 18, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/cases/the-ensign-group-inc-ensg-class_action_lawsuit.
Ensign Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that:
Ensign's business model depends on the systematic and widespread neglect of elderly people who live in its facilities, including those with needs for high levels of care; Ensign's abuse and neglect includes not giving residents enough food, medical attention, or even basic toiletries as well as failing to respond to residents in clear distress, which has resulted in resident deaths; Ensign uses self-reporting measures as a way to cover up that it systematically neglects patients; Ensign defrauds Medicaid and Medicare by taking federal funds to help patients who need high levels of care, and then neglecting those same patients; Ensign falsifies the number of hours that Certified Nursing Assistants spend with residents; Ensign engages in an illegal scheme to rent the licenses of Administrators who are not generally present at, nor actually managing, its facilities; Ensign materially understated the reputational and litigation exposure that comes with a dangerous, abhorrent, and illegal business model; and as a result, defendants' statements about Ensign's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.What's Next for Ensign Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/cases/the-ensign-group-inc-ensg-class_action_lawsuit, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Ensign you have until December 7, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Ensign Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Ensign Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Source: Bronstein, Gewirtz & Grossman, LLC
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LOS ANGELES, Oct. 23, 2026 (GLOBE NEWSWIRE) -- Schall, Brown & Schwartz LLP (“SBS”), a national shareholder rights litigation firm, reminds investors of a class action lawsuit against AppLovin Corporation (“AppLovin” or “the Company”) (NASDAQ: APP) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Shareholders who purchased shares of APP during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: February 12, 2026 to August 5, 2026
DEADLINE: November 16, 2026
If you are a shareholder who suffered a loss, click here to participate.
CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. AppLovin’s generative AI video tool for its AppLovin Ads platform suffered from significant delays. The Company overstated improvements to its AI models. The Company exaggerated the benefits of the “virtuous cycle” it claimed its AI provided to both customers and itself. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about AppLovin, investors suffered damages.
We also encourage you to contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Join the case to recover your losses
WHY SBS? Schall, Brown & Schwartz LLP represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. Bringing together the extensive experience and diverse skillsets of founding partners Brian Schall, Andrew Brown, and David Schwartz, SBS is dedicated to aggressively advocating for every investor.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
Schall, Brown & Schwartz LLP
Brian Schall, Esq.,
Andrew Brown, Esq.,
David Schwartz, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
, /PRNewswire/ -- AppLovin Corporation (NASDAQ: APP) faces a securities class action seeking to represent investors who purchased or otherwise acquired AppLovin securities between February 12, 2026 and August 5, 2026.
The suit follows the publication of a concerning analyst report on July 13, 2026 and the company's August 5, 2026 Q2 2026 financial results, each of which drove the price of AppLovin shares sharply lower.
The developments have prompted national shareholders rights firm Hagens Berman to open an investigation into claims that AppLovin violated the securities laws and urge AppLovin investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 12, 2026 – Aug. 5, 2026
Lead Plaintiff Deadline: Nov. 16, 2026
Visit: www.hbsslaw.com/app
Direct Contact Email: [email protected]
Firm Telephone: 844-916-0895
Video: youtu.be/c5nqdaiWyls
AppLovin Corporation (APP) Securities Class Action:
AppLovin provides end-to-end AI-powered advertising solutions for businesses to reach, monetize, and grow their global audience.
To investors, "uplift" is possibly the most critical driver of the company's revenue growth. The company improves its AI model to increase uplift, better matching the exact right ad to the exact right user at the exact right millisecond. In turn, this uplifts advertisers' return on ad spend, increases their advertising budgets, and (for AppLovin) accelerates high-margin revenue.
The lawsuit is focused on the propriety of AppLovin's statements about model improvements and uplift.
Most recently, several weeks into AppLovin's Q2, during its May 6, 2026 Q1 2026 earnings call, management left investors with high expectations for uplift and revenue growth.
CEO Adam Foroughi said that the most important milestone investors should focus on was the company's "improving the underlying model." He emphasized that "[l]ast quarter earnings, I mentioned we just had one new model that had just created an uplift[]" and "[t]he one we had a couple of weeks ago was quite substantial." He also explained, "that's why I highlighted […] that we saw a big acceleration going exiting the quarter[,]" and "then, April Q2, bigger than any quarter that we had[.]"
Investors' expectations began to unravel on July 13, 2026, when a prominent analyst published a report highlighting a lack of immediate advertiser influx following the general availability launch of AppLovin's advertising tools. In response, the price of AppLovin shares tumbled $64.13 (-12.6%).
Then, on August 5, 2026, the company reported its Q2 2026 revenue that was below midpoint. In apparent contrast to the "big acceleration," management said "[o]ur pace of meaningful model improvement was lighter than normal during the quarter[]" and "we didn't get the same level of model uplift we've seen in recent quarters[.]" This news drove the price of AppLovin shares crashing another $82.13 (-19.6%).
Between the two drops, the company lost over $44 billion of its market capitalization.
"We're focused on when during Q2 AppLovin first knew that the uplift and revenue acceleration investors had come to expect wasn't happening," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in AppLovin and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now »
Whistleblowers: Persons with non-public information regarding AppLovin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Key Takeaways INSP shares gain 47.8% in three months as reimbursement uncertainty eases and recovery prospects improve.Q2 revenues reached $200.6 million, beating expectations, while adjusted EPS of 14 cents topped estimates.Project Horizon targets $30 million in annualized savings, while new CPT codes support Inspire V adoption.
Shares of Inspire Medical Systems (INSP - Free Report) have gained 47.8% over the past three months compared with the industry’s 46.2% growth. The rally appears to reflect easing reimbursement uncertainty, better-than-expected second-quarter results, Project Horizon’s plan to redirect $30 million annually toward growth, and an October coding decision that improves the long-term outlook for Inspire V adoption. Near-term sales, however, remain disrupted.
Minneapolis, MN-based Inspire Medical is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire system is the first FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.
INSP is also scheduled to report third-quarter results on Nov. 2. The company’s earnings per share (EPS) reflect a 48.8% year-over-year decline. Third-quarter sales are likely to decline 6.5% year over year.
Image Source: Zacks Investment Research
Here, we examine the key factors that likely boosted INSP’s share price over the past three months.
Coding Clarity and Reimbursement Rules Improve the OutlookThe hypoglossal nerve stimulation (HGNS) market faced disruption in early 2026 as coding confusion made hospitals and physicians more cautious about scheduling Inspire V procedures. In June, CMS proposed 2027 facility reimbursement of $35,414 for hospital outpatient procedures, up approximately 12%, and $31,722 for ambulatory surgery centers, up 15%. Proposed physician reimbursement, however, declined about 4% to $699, leaving the final payment outlook mixed.
By August, Inspire Medical said the relevant C-codes were in place and incorporated into the WISeR system in six applicable states. Prior-authorization submissions were also improving as high-volume centers gained billing experience.
Another significant milestone was achieved on Oct. 1, when the American Medical Association approved new Category I CPT codes specifically covering single-lead HGNS procedures, including Inspire V. Set to take effect on Jan. 1, 2028, these codes are expected to improve coding consistency, although CMS valuation is still pending. This development could ease administrative complexities and improve patient access across the category.
Second-Quarter Results Restore ConfidenceCoding and reimbursement disruption continued to weigh on sales, but the second-quarter results offered investors evidence that Inspire Medical was managing these headwinds better. Revenues declined 7.6% year over year to $200.6 million because of coding and reimbursement challenges, but exceeded expectations. Adjusted EPS of 14 cents also beat estimates, while operating cash flow improved to $23.2 million from $2.7 million a year earlier. Gross margin expanded 150 basis points to 85.5%, supported by a greater revenue contribution from the higher-margin Inspire V system.
Management also narrowed its estimated full-year revenue impact from coding and reimbursement disruption and WISeR to $120-$130 million. It revised its 2026 revenue outlook to $835-$875 million and set adjusted EPS guidance of $1.05-$1.45.
Although the results did not signal an immediate return to growth, the earnings beat, improving authorization trends and expectations of easing disruptions in the coming quarters provided greater clarity on the company's recovery prospects. These factors likely bolstered investor sentiment despite the year-over-year revenue decline.
Project Horizon Prioritizes Growth InvestmentsAlongside the results, Inspire Medical announced Project Horizon, a strategic plan expected to generate approximately $30 million in annualized capacity for reinvestment in growth initiatives. The plan combines organizational streamlining with supply-chain and production consolidation, directing resources toward patient access, education and engagement. Initiatives include prior-authorization support through SleepSync and Inspire Connect, which provide structured education and support following implantation.
Project Horizon involves $20-$25 million in pretax restructuring charges, with most actions expected to be completed by year-end. Management indicated that many patient-flow initiatives would contribute more meaningfully in 2027 and beyond. Investors may view the program as an opportunity to channel operational savings toward improving patient conversion and reviving demand, rather than relying solely on the normalization of reimbursement conditions.
Clinical Evidence Broadens the OpportunityIn June, Inspire presented complete results from its Inspire V trial, including safety and efficacy data for its accelerometer-based sensing technology. The company also highlighted research associating hypoglossal nerve stimulation with improved cardiovascular risk markers. Its PREDICTOR study suggested that some candidates could be screened for eligibility without drug-induced sleep endoscopy, potentially reducing diagnostic burden and time to treatment. Together, these findings may help physicians identify eligible patients more efficiently and reinforce the therapy’s broader clinical value.
Concerns for INSPDespite better coding clarity, reimbursement remains a material risk. Management estimated coding and reimbursement disruption and WISeR effects could reduce 2026 revenues by $120 million to $130 million, while the full-year revenue projection remains in the range of $835-$875 million.
The new CPT codes are not scheduled to take effect until 2028, while proposed CMS physician reimbursement rates for 2027 are lower. Moreover, Project Horizon is expected to incur restructuring charges of $20-$25 million, with the anticipated growth benefits likely to emerge gradually.
ConclusionINSP’s rally reflects growing investor confidence in the company’s ability to address coding-related challenges while redirecting operational savings toward improving patient access and expanding market penetration. The AMA’s approval of new CPT codes, coupled with better-than-expected earnings and supportive clinical evidence, strengthens its long-term recovery prospects. However, effective execution, final reimbursement rates and the pace of recovery in procedure volumes remain key factors to monitor.
Zacks Rank & Key PicksAlthough INSP currently carries a Zacks Rank #4 (Sell), the VGM score of B reflects potential. While INSP’s Value Score of C suggests a moderate valuation premium, its Growth and Momentum Scores of B indicate potential for sustained upward momentum. However, given the stock’s current Zacks Rank of Sell, investors may prefer to remain on the sidelines and await greater clarity on coding-related issues and revenue trends during the third-quarter earnings call before making an investment decision.
Some better-ranked stocks from the broader medical space are Glaukos (GKOS - Free Report) , Edward Lifesciences (EW - Free Report) and Globus Medical (GMED - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Glaukos reported second-quarter 2026 EPS of 14 cents, which beat the Zacks Consensus Estimate by 50.00%. Revenues of $186 million surpassed the Zacks Consensus Estimate by 24.1%.
Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 25.87%.
Edward Lifesciences reported second-quarter 2026 adjusted EPS of 78 cents, which beat the Zacks Consensus Estimate by 6.85%. Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 2.45%.
Edward Lifesciences has an estimated long-term earnings growth rate of 12.7%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.49%.
Globus Medical reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.
Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.
A new federal rule threatens penalties that could dwarf the price of any single home purchase, and the two biggest single-family landlords in America just watched their stocks climb on the day it dropped.
Starting January 7, 2027, a company could face a civil penalty. If it controls at least 350 single-family homes, the penalty could reach the greater of $1 million or three times the purchase price for each prohibited purchase. The Treasury Department proposed rules on October 22, 2026, that put this ban from the 21st Century ROAD to Housing Act into practice.
Invitation Homes (NYSE:INVH) and American Homes 4 Rent (NYSE:AMH) both sit far above that line, and both stocks rose on October 22. Invitation Homes gained 2.69% to close at $27.53, while AMH gained 3.10% to $31.90. The 10-year Treasury yield fell sharply that day, and that explains the move better than the rule does.
Congress already decided on the ban itself. Treasury’s proposal only defines its edges, and those edges will shape how these two landlords grow.
What the Law Bans and What Treasury Proposed
Section 1001 became law on July 11, 2026. Beginning 180 days later, a large institutional investor “generally may not buy, or contract to buy,” a single-family home unless the deal counts as an “excepted purchase.”
Treasury described the proposal as the first phase of a “phased rulemaking approach.” Publication in the Federal Register is scheduled for October 23, 2026, and comments are due 30 days after that. Later phases may cover compliance, reporting, and enforcement, so political risk remains.
How the $1 Million Penalty Math Works
The maximum fine is $1 million or three times the purchase price, whichever is greater, which makes $1 million the floor of the maximum and, on pricier homes, the multiple sets the ceiling.
Treasury can sue a violator, or the Justice Department can sue at Treasury’s request. A single purchase involving several related investors, such as a fund, its manager and its general partner, counts as one violation. Penalties apply only to prohibited purchases made on or after January 7, 2027, and no company has been fined.
Exemptions That Still Let Large Landlords Buy Homes
A build-to-rent home qualifies under three conditions. Nobody has lived in it as an owner, the investor buys it within 18 months of its certificate of occupancy, and renters are its first occupants. The renovate-to-rent exemption requires the investor to spend at least 15% of the price on improvements, or 10% under a safe harbor for spending on structural or core systems.
Purchases from another large investor that owned the home at enactment, or bought it legally, also qualify, so big landlords can still trade grandfathered rentals with each other, and with fewer eligible buyers, existing portfolios could rise in value. Treasury declined to extend build-to-rent to older rentals because that reading “appears to be inconsistent with the statutory text and purpose.”
What It Means for Invitation Homes and AMH
As of June 30, 2026, Invitation Homes owned 85,509 homes outright, held 8,069 in joint ventures and managed 15,639 for other owners. In the second quarter, it sold 657 wholly owned homes, many to owner-occupants, and acquired 196.
A landlord that sells more homes than it buys has little exposure to a purchase ban, and the law does not restrict its sales to families. Dallas Tanner, chief executive at the time of the July 30, 2026 earnings call, said: “Grandfathered scattered-site assets have a premium in the context of the new legislation.”
AMH owned more than 61,000 single-family properties and grows mostly by building its own homes. Industrywide, buying by large investors has fallen 31.8% in 2026.
Key Dates and Risks Investors in Invitation Homes and AMH Should Track
With a market value of $16.32 billion, Invitation Homes owns a grandfathered portfolio that the law protects from new big-buyer competition. The stock also trades below the $32.83 average analyst target.
AMH, worth $13.08 billion, has the growth model that depends least on Treasury’s final definitions. Building new homes involves no purchase of an existing house.
Invitation Homes is expected to report around October 28, and AMH around November 4. The case for both landlords weakens. That could happen if the final rule narrows the investor-to-investor or renovate-to-rent exemptions, or if Invitation Homes closes below its 52-week low of $23.45.
Contact [email protected] for any questions or corrections.
Nearly 40% of patients alive at three years with Ziihera plus tislelizumab and chemotherapy, irrespective of PD-L1 status, achieving a median OS of 27 months
Mature HERIZON-GEA-01 results show Ziihera plus chemotherapy delivered statistically significant and clinically meaningful OS benefit, reducing the risk of death by 24% versus trastuzumab plus chemotherapy
For U.S. media and investors only
, /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced updated overall survival (OS) results from the Phase 3 HERIZON-GEA-01 trial evaluating Ziihera® (zanidatamab-hrii) in combination with chemotherapy, with or without Tevimbra® (tislelizumab-jsgr), as first-line treatment for adults with HER2-positive (HER2+) locally advanced or metastatic gastroesophageal adenocarcinoma (GEA). The results from the second interim, and final formal, analysis were presented as a late-breaking rapid oral presentation (LBA79) at the European Society for Medical Oncology (ESMO) Congress 2026 in Madrid, Spain.
"For patients with HER2+ advanced GEA, long-term survival remains difficult to achieve. With longer follow-up, Ziihera-containing regimens demonstrated a durable overall survival benefit, with nearly 40% of patients treated with Ziihera plus tislelizumab and chemotherapy alive at three years," said Dr. Kohei Shitara, director of the Department of Gastrointestinal Oncology, and principal trial investigator at the National Cancer Center Hospital East, Kashiwa, Japan. "Ziihera plus chemotherapy has also now demonstrated a statistically significant survival benefit over trastuzumab plus chemotherapy. Together, these findings provide strong evidence for Ziihera-containing regimens as the new HER2-directed first-line standard of care."
At the data cutoff, median follow-up was 35.3 months, 9.4 months longer than at the first interim analysis. Key findings included:
Ziihera plus tislelizumab and chemotherapy sustained its OS benefit versus trastuzumab plus chemotherapy, with an improved HR: Median OS reached 27.0 months (95% confidence interval [CI]: 23.7-32.2), the longest reported in a Phase 3 trial in this setting, compared with 19.6 months with trastuzumab plus chemotherapy. The Ziihera plus tislelizumab and chemotherapy regimen reduced the risk of death by 35% (hazard ratio [HR] 0.65; 95% CI: 0.52-0.80), improving from an HR of 0.72 at the first interim analysis.Nearly 40% of patients receiving Ziihera plus tislelizumab and chemotherapy were alive at three years: Estimated 36-month OS was 39.8% with Ziihera plus tislelizumab and chemotherapy, 31.5% with Ziihera plus chemotherapy and 22.9% with trastuzumab plus chemotherapy.Ziihera plus chemotherapy demonstrated a statistically significant and clinically meaningful OS improvement versus trastuzumab plus chemotherapy: Median OS was 22.9 months (95% CI: 19.9-27.6) with Ziihera plus chemotherapy compared with 19.6 months (95% CI: 16.9-22.2) with trastuzumab plus chemotherapy. Ziihera plus chemotherapy reduced the risk of death by 24% (HR 0.76; 95% CI: 0.62-0.93; P=0.0088).Ziihera plus tislelizumab and chemotherapy showed a meaningful trend toward improved OS versus Ziihera plus chemotherapy: Median OS was approximately four months longer with Ziihera plus tislelizumab and chemotherapy than with Ziihera plus chemotherapy (27.0 versus 22.9 months; HR 0.81; 95% CI: 0.65-1.00; P=0.0502). The difference did not reach statistical significance. Mean duration of treatment was longest for Ziihera plus tislelizumab and chemotherapy (64.1 weeks): 11.5 weeks longer than Ziihera plus chemotherapy (52.6 weeks), and 21.8 weeks longer than trastuzumab plus chemotherapy (42.3 weeks).Safety profiles remained unchanged with longer follow-up: The safety profiles of both Ziihera-containing regimens were consistent with the first interim analysis, supporting the tolerability of prolonged treatment."These HERIZON-GEA-01 three-year landmark results demonstrate meaningful survival outcomes for patients with HER2+ advanced GEA," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of R&D, and chief medical officer of Jazz Pharmaceuticals. "The statistically significant survival benefit observed with Ziihera plus chemotherapy and the durable outcomes seen with Ziihera plus tislelizumab and chemotherapy cement Ziihera as the new HER2-targeted backbone therapy in first-line HER2+ advanced GEA."
The Ziihera-containing regimens were recently included as preferred therapies in the National Comprehensive Cancer Network® (NCCN®) Clinical Practice Guidelines in Oncology® for Gastric Cancer, and Esophageal and Esophagogastric Junction Cancers, and Ziihera plus tislelizumab and chemotherapy is the only preferred HER2+ regimen irrespective of PD-L1 status.
These results follow the August 25, 2026, U.S. Food and Drug Administration (FDA) approval of two Ziihera-containing regimens for the first-line treatment of adults with HER2+ unresectable locally advanced or metastatic GEA: Ziihera plus tislelizumab and fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ or IHC 2+/ISH+ disease; and Ziihera plus fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ disease. The approval was based on results from the Phase 3 HERIZON-GEA-01 trial, which were first presented at ASCO GI 2026, subsequently published in The New England Journal of Medicine and further evaluated through PD-L1 subgroup analyses presented at ASCO 2026.
The U.S. Prescribing Information for Ziihera contains Boxed Warnings for diarrhea and embryo-fetal toxicity.
Additional Important Safety Information related to Ziihera use in GEA is provided below. Please see full Prescription, including Boxed Warnings at https://pp.jazzpharma.com/pi/ziihera.en.USPI.pdf.
About the Phase 3 HERIZON-GEA-01 Trial
HERIZON-GEA-01 (NCT05152147) is a global, randomized, open-label Phase 3 trial, conducted jointly with BeOne Medicines, to evaluate and compare the efficacy and safety of zanidatamab plus chemotherapy, with and without tislelizumab, to trastuzumab plus chemotherapy as first-line treatment for adult patients with advanced/metastatic HER2+ GEA. The trial randomized 914 patients from approximately 225 trial sites in more than 30 countries. Appropriate patients for this trial had unresectable locally advanced, recurrent or metastatic HER2+ GEA (adenocarcinomas of the stomach or esophagus, including the gastroesophageal junction), defined as 3+ HER2 expression by IHC or 2+ HER2 expression by IHC with ISH positivity per central assessment. Patients were randomized to the three trial arms: zanidatamab in combination with chemotherapy and tislelizumab; zanidatamab in combination with chemotherapy; and trastuzumab plus chemotherapy. The trial evaluated dual primary endpoints, PFS per blinded independent central review (BICR) and OS.
About Gastroesophageal Adenocarcinoma
GEA, including cancers of the stomach, gastroesophageal junction, and esophagus, is the fifth most common cancer worldwide, and approximately 20% of patients have HER2+ disease.1,2,3,4 HER2+ GEA has high morbidity and mortality, and patients are urgently in need of new treatment options. The overall prognosis for patients with GEA remains poor, with a global five-year survival rate of less than 10% for metastatic disease.5
About Ziihera® (zanidatamab-hrii)
Ziihera (zanidatamab-hrii) is a bispecific HER2-directed antibody that binds to two extracellular sites on HER2. Binding of zanidatamab with HER2 results in internalization leading to a reduction in HER2 expression of the receptor on the tumor cell surface. Zanidatamab induces CDC, ADCC, and ADCP. These mechanisms result in tumor growth inhibition and cell death in vitro and in vivo.6
Gastroesophageal adenocarcinoma (GEA): In the United States, Ziihera is indicated for the first-line treatment of adults with HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma (GEA), including cancers of the stomach, gastroesophageal junction and esophagus, in combination with tislelizumab-jsgr and fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ and IHC 2+/ISH+ as detected by an FDA-authorized test); and in combination with fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ as detected by an FDA-authorized test).
Biliary tract cancer (BTC): In the United States, Ziihera is also indicated for the treatment of adults with previously treated, unresectable or metastatic HER2+ (IHC 3+) biliary tract cancer (BTC), as detected by an FDA-approved test.6 Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).6 Ziihera is also approved in the European Union and other countries.
Zanidatamab is being developed in multiple clinical trials as a targeted treatment option for patients with solid tumors that express HER2. Zanidatamab is being developed by Jazz and BeOne Medicines under license agreements from Zymeworks, which first developed the molecule.
The FDA granted three Breakthrough Therapy designations for zanidatamab's development: one as a single agent for previously treated HER2 gene-amplified BTC, one in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without tislelizumab for first-line HER2+ unresectable locally advanced or metastatic gastric, gastroesophageal junction (GEJ), or esophageal GEA, and one for the treatment of adults with previously treated, locally advanced, unresectable, or metastatic HER2+ colorectal cancer (CRC). The FDA also granted two Fast Track designations for zanidatamab: one as a single agent for refractory BTC and one in combination with standard-of-care chemotherapy for first-line GEA. Additionally, zanidatamab has received Orphan Drug designations from the FDA for the treatment of BTC, gastric (including GEJ) cancer, and esophageal cancer, as well as Orphan Drug designations from the European Medicines Agency for the treatment of BTC, gastric/gastroesophageal junction cancer, and esophageal cancer. Jazz continues to pursue additional regulatory approvals for zanidatamab in markets worldwide.
Important Safety Information for ZIIHERA
WARNING: DIARRHEA and EMBRYO-FETAL TOXICITY
ZIIHERA, in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without
tislelizumab-jsgr, can cause severe diarrhea, including life threatening and fatal cases. Use antidiarrheal
prophylaxis during the first cycle when ZIIHERA is given in combination with these drugs. Manage with
antidiarrheals and supportive measures as clinically indicated. Interrupt, reduce the dose or discontinue
ZIIHERA based on severity.
Embryo-Fetal Toxicity: Exposure to ZIIHERA during pregnancy can cause embryo-fetal harm. Advise patients
of the risk and need for effective contraception.
Diarrhea: ZIIHERA can cause severe diarrhea.
When ZIIHERA is used in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr, severe, life threatening, and fatal cases of diarrhea can occur despite loperamide prophylaxis. The risk of severe and life threatening diarrhea is higher when ZIIHERA is administered with chemotherapy and tislelizumab-jsgr, with a higher risk in patients aged ≥ 65 years compared to younger patients. Advise patients to increase oral fluids, begin antidiarrheals, and notify their healthcare provider immediately if diarrhea occurs.
Administer antidiarrheal prophylaxis with loperamide in cycle 1 for all patients receiving ZIIHERA in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr. Begin loperamide at the first loose stool when ZIIHERA is administered in combination with chemotherapy. Administer fluids, electrolytes, and additional antidiarrheal agents as necessary. Before modifying the dose of ZIIHERA, evaluate, modify or discontinue drug(s) contributing to diarrhea in accordance with their respective prescribing information. Withhold, reduce the dose, or permanently discontinue ZIIHERA based on severity.
If treating patients with ZIIHERA in combination with FOLFOX, do not administer the fluorouracil bolus.
ZIIHERA in combination with chemotherapy and tislelizumab-jsgr
Diarrhea was reported in 85% of 330 patients in clinical studies, including Grade 4 (2.1%), Grade 3 (24%), and Grade 2 (31%) events. Fatal outcomes resulting from diarrhea occurred in 1.5% of patients. Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 3.9% of patients.
In cycle 1, diarrhea at Grade 4 severity occurred in 1.5% and Grade 3 severity occurred in 15% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.
ZIIHERA in combination with chemotherapy
Diarrhea was reported in 81% of 395 patients in clinical studies, including Grade 4 (1.3%), Grade 3 (20%) and Grade 2 (33%). Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 1.8% of patients.
In cycle 1, diarrhea at Grade 4 severity occurred in 0.8% and Grade 3 severity occurred in 14% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.
Embryo-Fetal Toxicity: Based on the mechanism of action, ZIIHERA can cause fetal harm when administered to a pregnant woman. There are no human or animal data on the use of ZIIHERA in pregnancy. In literature reports, use of a HER2-directed antibody during pregnancy resulted in cases of oligohydramnios and oligohydramnios sequence manifesting as pulmonary hypoplasia, skeletal abnormalities, and neonatal death.
Verify the pregnancy status of females of reproductive potential prior to the initiation of ZIIHERA. Advise pregnant women and females of reproductive potential that exposure to ZIIHERA during pregnancy or within 4 months prior to conception can result in fetal harm. Advise females of reproductive potential to use effective contraception while receiving ZIIHERA and for 4 months following the last dose of ZIIHERA.
Left Ventricular Dysfunction (LVD): ZIIHERA can cause decreases in left ventricular ejection fraction (LVEF).
Assess LVEF prior to initiation of ZIIHERA and at regular intervals during treatment. Withhold dose or permanently discontinue ZIIHERA based on severity of adverse reactions.
The safety of ZIIHERA has not been established in patients with a baseline ejection fraction that is
ZIIHERA in combination with chemotherapy and tislelizumab-jsgr
LVEF decrease (an absolute decline in LVEF of > 10%, resulting in a final value of
ZIIHERA in combination with chemotherapy
LVEF decrease was observed in 5% of 395 patients. LVD leading to permanent discontinuation of ZIIHERA was reported in 1.0% of patients. The median time to first occurrence of LVD was 6.0 months (range: 1.4 to 15.0 months). LVD dysfunction resolved in 70% of patients. Infusion-Related Reactions: ZIIHERA can cause infusion-related reactions (IRRs).
Prior to each dose of ZIIHERA, administer premedication to prevent potential IRRs. Monitor patients for signs and symptoms of IRR during ZIIHERA administration and as clinically indicated after completion of infusion. Have medications and emergency equipment to treat IRRs available for immediate use.
If an IRR occurs, slow or stop the infusion, and administer appropriate medical management. Monitor patients until complete resolution of signs and symptoms before resuming. Permanently discontinue ZIIHERA in patients with recurrent severe or life-threatening IRRs.
ZIIHERA in combination with chemotherapy and tislelizumab-jsgr
An IRR was reported in 22% of 330 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.2%), and Grade 2 (16%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 0.3% of patients. IRRs occurred on the first day of dosing in 17% of patients. Of all patients who experienced IRRs, 60% of reactions resolved within the first day.
ZIIHERA in combination with chemotherapy
An IRR was reported in 24% of 395 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.5%), and Grade 2 (18%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 1.3% of patients. IRRs occurred on the first day of dosing in 22% of patients. Of all patients who experienced IRRs, 83% of reactions resolved within the first day.
Adverse Reactions
ZIIHERA in combination with chemotherapy and tislelizumab-jsgr
Serious adverse reactions occurred in 59% of 294 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (17%), IRR (5%), vomiting (4.8%), hypokalemia (4.4%), acute kidney injury (3.7%), pneumonia (3.7%), nausea (2.4%), decreased appetite (2.4%), and anemia (2.4%). Fatal adverse reactions occurred in 2.4% of patients and included acute kidney injury (N=2), cardiac failure, diarrhea, dehydration, hypovolemic shock and intestinal obstruction (all N=1).
Permanent discontinuation of ZIIHERA occurred in 13% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included diarrhea (4.4%) and ejection fraction decreased (2.7%).
The most common adverse reactions (≥ 20%) were diarrhea (83%), nausea (56%), decreased appetite (46%), vomiting (44%), hypokalemia (39%), fatigue (37%), rash (36%), peripheral neuropathy (27%), and IRR (25%).
ZIIHERA in combination with chemotherapy
Serious adverse reactions occurred in 49% of 305 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (11%), vomiting (3.3%), decreased appetite (2.6%), pneumonia (2.6%), sepsis (2.6%), hypokalemia (2.3%), and nausea (2.3%).
Permanent discontinuation of ZIIHERA occurred in 10% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included ejection fraction decreased (2.0%), IRR (1.6%), and diarrhea (1.6%).
The most common adverse reactions (≥ 20%) were diarrhea (79%), nausea (54%), vomiting (44%), decreased appetite (40%), fatigue (36%), hypokalemia (33%), peripheral neuropathy (32%), IRR (25%), and rash (22%).
Pediatric Use: Safety and efficacy of ZIIHERA have not been established in pediatric patients.
Geriatric Use
ZIIHERA in combination with chemotherapy and tislelizumab-jsgr
Of 302 patients randomized to ZIIHERA in combination with chemotherapy and tislelizumab-jsgr in HERIZON-GEA-01, there were 139 (46%) patients aged ≥ 65 years. One hundred and six (35%) were aged 65-74 years and 33 (11%) were aged ≥ 75 years.
There was a higher incidence of Grade ≥ 3 adverse reactions observed in patients aged ≥ 65 years (87%) as compared to younger patients (80%). The incidence of Grade 3 or 4 diarrhea was higher in patients aged ≥ 65 years (32%) compared to younger patients (20%).
There was an increased incidence of fatal adverse reactions in patients aged ≥ 65 years (4.4%); including acute kidney injury (N=2), cardiac failure, dehydration, hypovolemic shock and intestinal obstruction (all N=1), compared to younger patients (0.6%), including diarrhea (N=1).
ZIIHERA in combination with chemotherapy
Of 304 patients randomized to ZIIHERA in combination with chemotherapy in HERIZON-GEA-01, there were 130 (43%) patients aged ≥ 65 years. One hundred (33%) were aged 65-74 years and 30 (10%) were aged ≥ 75 years.
No overall differences in safety were observed between patients aged ≥ 65 years and younger adult patients.
® TEVIMBRA (tislelizumab) is a registered trademark of BeOne Medicines.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the potential therapeutic and differentiated clinical benefits of Ziihera and of combination therapies with Ziihera, including Ziihera's potential to extend survival, Ziihera's potential as a new standard of care in HER2+ first-line GEA and other HER2-expressing cancers and other statements that are not historical facts. These forward-looking statements are based on Jazz Pharmaceuticals' current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with the successful completion of regulatory activities and uncertain regulatory approval, risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients and other risks and uncertainties affecting Jazz Pharmaceuticals and its development programs, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals' Securities and Exchange Commission filings and reports, including Jazz Pharmaceuticals' Annual Report on Form 10-K for the year ended December 31, 2025 and future filings and reports by Jazz Pharmaceuticals. Other risks and uncertainties of which Jazz Pharmaceuticals is not currently aware may also affect Jazz Pharmaceuticals' forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by Jazz Pharmaceuticals on its website or otherwise. Jazz Pharmaceuticals undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
1 Bray F., et al. Global cancer statistics 2022: GLOBOCAN estimates of incidence and mortality worldwide for 36 cancers in 185 countries. CA: A Cancer Journal for Clinicians. 2024 April; doi.org/10.3322/caac.21834Digital Object Identifier (DOI).
2 Abrahao-Machado I.F., et al. HER2 testing in gastric cancer: An update WorldJGastroenterol. 2016;22(19):4619-4625.
3 Van Custem E., et al. HER2 screening data from ToGA: targeting HER2 in gastric and gastroesophageal junction cancer. Gastric Cancer. 2015;18(3):476-484.
4 Stroes, C.I., et al. A systematic review of HER2 blockade for the curative treatment of gastroesophageal adenocarcinoma: Successes achieved and opportunities ahead. CancerTreatRev. 2021;99:102249.
5 Tabernero J., et al. HERIZON-GEA-01: Zanidatamab + chemo ± tislelizumab for 1L treatment of HER2-positive gastroesophageal adenocarcinoma. Taylor & Francis. 2022 July; doi.org/10.2217/fon-2022-0595.
6 ZIIHERA (zanidatamab-hrii) Prescribing Information. Palo Alto, CA: Jazz Pharmaceuticals, Inc.
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Hewlett Packard Enterprise is pulling away from its AI server rivals on a day when the broader market stumbled, and the reasons behind that gap stretch from industrial factory floors all the way to the surface of the Moon.
Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock climbed about 4% to $57.46, outpacing its peers in the AI server group. Dell Technologies (NYSE:DELL) shares advanced roughly 2% to $462.42, while Super Micro Computer (NASDAQ:SMCI) stock was essentially unchanged at $33.73. The move in Hewlett Packard Enterprise shares followed fresh AI and industrial edge partnerships plus progress on a lunar computing mission.
HPE stock’s strength stood out against broader market softness. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) rose about 2% to $25.39, while the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) slipped 0.34% to $761.35. Recent announcements around AI infrastructure and frontier computing appear to be supporting the advance.
AI Partnerships Drive Fresh Attention
Hewlett Packard Enterprise expanded its HPE AI Factory offerings with NVIDIA (NASDAQ:NVDA), focusing on secure agentic AI for enterprise and industrial settings. The company also deepened collaboration with Schneider Electric to deploy industrial AI agents at the edge using HPE Private Cloud AI. These moves aim to bring intelligence closer to operational environments while addressing data security and cost concerns.
The partnerships highlight Hewlett Packard Enterprise’s push into hybrid and edge AI infrastructure. NVIDIA technologies underpin the expanded capabilities, including support for mixed GPU clusters and agentic workloads. Investors appear to be responding to the company’s positioning in both data-center and industrial AI demand.
Spaceborne Computer Extends Frontier Story
Hewlett Packard Enterprise announced that its Spaceborne Computer-4 will ride Astrolab’s FLIP rover to the Moon’s south pole later this year. The module is designed to run the first high-performance computing benchmarks on the lunar surface along with AI inference, LiDAR processing, and large-language-model tasks. NASA and Deloitte plan to deploy additional workloads on the system.
The mission builds on earlier Spaceborne Computers that operated on the International Space Station. Hewlett Packard Enterprise is positioning the effort as a step toward edge computing for future lunar exploration and an emerging space economy. The announcement adds a distinctive narrative beyond traditional server sales.
Peers Show Mixed Performance
Dell Technologies stock participated in the AI infrastructure optimism with a solid gain. Super Micro Computer shares, however, held flat after recent volatility in the pure-play AI server segment. The divergence suggests investors are differentiating among suppliers based on partnership breadth and diversification.
Hewlett Packard Enterprise benefits from a mix of enterprise IT, edge, and specialized computing exposure. That mix may be helping the stock hold up better than more narrowly focused peers on a day when broader tech sentiment remains cautious. Data-center related ETFs still advanced even as the wider market lagged.
Sustainability Of Growth Remains The Question
AI infrastructure spending continues to support demand across the server group, yet questions persist about margin durability and valuation after strong runs. Hewlett Packard Enterprise has delivered solid recent gains, but sustaining elevated growth rates will depend on execution in both traditional and frontier segments. The upcoming earnings cycle could offer clearer visibility on those trends.
HPE stock investors should watch for signs that the new partnerships translate into measurable revenue and whether the lunar project reinforces the company’s technology credentials without distracting from core operations. Position sizes may warrant caution given the sector’s sensitivity to shifts in AI spending expectations.
Contact [email protected] for any questions or corrections.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Super Micro Computer (SMCI - Free Report) , which belongs to the Zacks Computer- Storage Devices industry, could be a great candidate to consider.
This server technology company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 91.67%.
For the last reported quarter, Super Micro came out with earnings of $1.7 per share versus the Zacks Consensus Estimate of $0.68 per share, representing a surprise of 150.00%. For the previous quarter, the company was expected to post earnings of $0.63 per share and it actually produced earnings of $0.84 per share, delivering a surprise of 33.33%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Super Micro. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Super Micro currently has an Earnings ESP of +36.36%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 3, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways Industrial Products sector Q3 earnings are projected to rise 14.2%, with revenues expected to grow 8.6%.CAT, CR, FLS and CSTM have positive Earnings ESPs, indicating potential to surpass Q3 earnings estimates.Strong manufacturing, aerospace and energy demand may boost results, while inflation and tariffs pose risks.
The third-quarter 2026 earnings season has just begun for the Zacks Industrial Products sector. As of Oct. 21, 4% of S&P 500 companies in the Industrial Products sector have reported results, with all surpassing earnings expectations. In the quarter, the sector is expected to have benefited from persistent strength in the manufacturing sector, growth in new orders and strong e-commerce activities. However, supply-chain issues and cost inflation are likely to have weighed on its performance.
The latest Earnings Trend report indicates a year-over-year improvement in both earnings and revenues for the S&P 500 companies within the Industrial Products sector. Per the report, the sector’s third-quarter earnings are anticipated to witness year-over-year growth of 14.2% compared with a 22.5% increase recorded in the previous quarter.
The sector’s revenues are projected to increase 8.6%, while margins are expected to rise 0.7% in the third quarter. The April-July quarter had witnessed 13.9% revenue growth and a 1% improvement in margin.
Let us discuss the factors that are likely to have played a key role in shaping the performance of industrial stocks in the third quarter.
Key Factors Likely to have Shaped Performance of the Industrial StocksThe industrial sector witnessed favorable operating conditions in the July-September quarter, driven by increased manufacturing activity and stronger demand for industrial products and services, which supported higher business activity levels.
Per the latest Institute for Supply Management’s (ISM) report released on Oct. 1, the Purchasing Managers Index (PMI) registered 55.6%, 54.6% and 54.5% in July, August and September, respectively. ISM’s production index in September was 56.7%, reflecting growth for the 11th consecutive month. Also, the new orders index was 55.3%, indicating the ninth successive month of increase. In the third quarter, the United States’ industrial production recorded an annual increase of 2.8%, with manufacturing output rising 0.7% at an annual rate.
Growth in demand across several markets, including manufacturing, electrical equipment, machinery, computer & electronics, fabricated metal, appliances & components and non-metallic mineral products, is likely to have supported the performance of industrial companies. Firms serving commercial and defense aerospace customers are also expected to have benefited from healthy aircraft production, resilient aftermarket activity and continued government spending. Also, the companies are likely to have benefited from focus on product innovation, multiple promotional efforts, effective pricing and cost-management actions.
Despite the positives, the industrial products sector has been bearing the brunt of inflationary pressures, an increase in labor market slack and supply-chain disruptions. Tariffs and trade-related levies on imported raw materials and intermediate goods have added incremental cost pressures, particularly for companies with global supply chains.
How to Pick Earnings Estimates Beating Stocks?Given the large number of players operating in the industrial products space, picking the right stock is not an easy task. Our proven model, however, makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks before they report earnings with our Earnings ESP Filter.
Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with the maximum chances of delivering positive earnings surprises in their announcement. Our research shows that for stocks with this combination of ingredients, the chances of a beat are as high as 70%.
4 Industrial Stocks With Earnings Beat PotentialCaterpillar Inc. (CAT - Free Report) has an Earnings ESP of +2.98% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 29, before market open. The Zacks Consensus Estimate for CAT’s revenues is pegged at $20.6 billion, indicating 16.7% growth from the year-ago quarter’s figure. The consensus estimate for its earnings is pegged at $7.12 per share, indicating a 43.8% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.1%.
Caterpillar is expected to have benefited from strong demand across construction, mining and power markets, with record backlog. Strong momentum in the Power & Energy segment, driven by rising electricity requirements and oil & gas activity, is likely to have been a tailwind for the company. Strength in the Construction segment, supported by higher infrastructure spending and large infrastructure and data-center projects , also bodes well.
Caterpillar Inc. Price and EPS SurpriseCrane Company (CR - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 27, after market close. The Zacks Consensus Estimate for CR’s revenues is pegged at $738.8 million, indicating 25.4% growth from the year-ago quarter. The consensus estimate for its earnings is pegged at $1.81 per share, indicating a 10.4% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.4%.
Crane’s Aerospace & Advanced Technologies segment is expected to have performed strongly, driven by strength across its commercial and military OEM businesses with higher aircraft build rates and favorable geopolitical backdrop. Stable demand in the pharmaceutical, cryogenic and water and wastewater markets is likely to have augmented its Process Flow Technologies segment. CR’s acquisitions of Druck, optek-Danulat, Panametrics and Reuter-Stokes are also expected to have boosted its top line in the quarter.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 28, after market close. The Zacks Consensus Estimate for FLS’ revenues is pegged at $1.24 billion, indicating growth of 5.3% from the year-ago quarter. The consensus estimate for its earnings is pegged at 98 cents per share, indicating an 8.9% year-over-year increase. Flowserve’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%.
Flowserve’s Pump Division segment is expected to have performed well in the third quarter, driven by strength in the aftermarket business in North and Latin America. An increase in bookings across general industries and power end markets is likely to boost the segment’s results. Strength in the aftermarket business, driven by healthy demand for products and services in the Middle East and Africa, is expected to have augmented the Flow Control Division segment’s performance.
Constellium SE (CSTM - Free Report) has an Earnings ESP of +14.50% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 28, before market open. The Zacks Consensus Estimate for CSTM’s revenues is pegged at $2.53 billion, indicating 16.9% growth from the year-ago quarter’s figure. The consensus estimate for its earnings is pegged at 74 cents per share, indicating a 19.4% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 83.3%.
Constellium is expected to have benefited from healthy packaging demand and higher shipments of aerospace & transportation and industry & defense rolled products. Constellium’s focus on cost control, commercial discipline and operational execution is also likely to have supported its margins in the quarter.
Key Takeaways BE's Q3 earnings beat estimates by 35.71%, while revenues jumped 138.1% to $1.236 billion.Product revenues surged 179.4% to $1.074 billion, fueled by strong demand for onsite power systems.BE raised its 2026 revenue outlook to $4.4-$4.6 billion and earnings guidance to $3.10-$3.40 per share.
Bloom Energy Corporation (BE - Free Report) reported third-quarter 2026 operating earnings of 76 cents per share, beating the Zacks Consensus Estimate of 56 cents by 35.71%.
The company separately reported non-GAAP earnings of 94 cents per share compared with 15 cents in the year-ago quarter.
Total RevenuesRevenues surged 138.1% year over year to $1.236 billion, surpassing the Zacks Consensus Estimate of $1.071 billion by 15.41%. Strong product demand drove growth, with product revenues crossing $1 billion for the first time. Improved margins and higher operating income supported the company's decision to raise its full-year outlook.
Product revenues climbed 179.4% to $1.074 billion from $384.3 million in the year-ago quarter. The business contributed approximately 87% of total revenues, reflecting increased deliveries of onsite power systems.
Installation revenues increased 29% to $84.9 million from $65.8 million. Service revenues rose 15.3% to $67.6 million from $58.6 million, while Electricity revenues declined 5.2% to $9.8 million from $10.4 million.
BE's Product Business Drives Record GrowthProduct gross margin improved to 38.4%, expanding 250 basis points year over year and 120 basis points sequentially. Strong pricing and manufacturing cost reductions supported the improvement despite expenses associated with expanding production lines and accelerating customer deliveries.
Management highlighted growing demand for onsite electricity from artificial intelligence data centers, commercial facilities and critical infrastructure. Bloom Energy's customer backlog continued to expand faster than revenues, supported by increasing diversity across customers, industries and geographies.
Bloom Energy Expands Margins SharplyGross profit increased to $417.1 million from $151.7 million in the year-ago period. Non-GAAP gross margin improved to 34.5% from 30.4%. Service gross margin reached 21.4%, increasing 700 basis points year over year, marking the second consecutive quarter above 20%.
Highlights of BE's Q3 ReleaseOperating expenses increased 33.3% to $191.7 million from $143.8 million. Research and development expenses rose 31.7% to $64.1 million, while sales and marketing expenses increased 24.8% to $52.4 million. General and administrative expenses climbed 41.4% to $75.1 million.
Non-GAAP operating income surged to $285.7 million from $46.2 million, while the corresponding margin expanded to 23.1% from 8.9%.
Bloom Energy Sees Expanding Market OpportunitiesManagement highlighted five commercial developments supporting its growth strategy. These included a conditional U.S. Army award involving partner Indelible and a 700-megawatt carbon capture-enabled project involving AEP and Google.
Bloom Energy also reported its first shipments to Texas, expanding utility relationships and growing international interest in onsite power systems. Management expects utility-related projects, including systems deployed on distribution networks, to become an important source of future business.
BE Delivers Higher ProfitabilityNet income attributable to common stockholders reached $250.3 million in contrast to a loss of $23.1 million in the third quarter of 2025. Adjusted EBITDA climbed to $299.5 million from $59 million, reflecting substantially stronger operating performance.
The company continued investing in manufacturing capacity to support customer demand. Management emphasized that higher production volumes, improved utilization and ongoing cost-reduction initiatives could support its long-term margin structure.
Bloom Energy's Cash Flow and Balance SheetCash flow from operating activities was negative $27 million during the quarter. Increased inventories, contract assets and receivables absorbed cash as the company supported higher delivery volumes and future customer requirements.
Capital expenditures totaled $153 million, resulting in negative free cash flow of $181 million. As of Sept. 30, 2026, cash and cash equivalents stood at $2.49 billion, while total stockholders' equity reached $1.96 billion.
BE Raises 2026 Financial OutlookBloom Energy raised its 2026 revenue guidance to $4.4-$4.6 billion from the previous range of $3.9-$4.2 billion. The revised midpoint represents approximately 122% year-over-year growth, supported by strong third-quarter performance and improved visibility into customer deliveries. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $4.14 billion.
Management maintained its non-GAAP gross margin forecast at approximately 34%. The company increased its non-GAAP operating income guidance in the range of $960 million to $1.03 billion from the previous band of $800-$900 million. Non-GAAP earnings guidance was also raised to $3.10-$3.40 per share from the previous projection of $2.55-$2.85.
Bloom Energy’s Zacks RankBloom Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Upcoming ReleasesPlug Power (PLUG - Free Report) is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 7 cents per share, which indicates a year-over-year improvement of 41.7%.
FuelCell Energy (FCEL - Free Report) is expected to release fiscal fourth-quarter earnings on Dec.17, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 28 cents per share, which implies year-over-year growth of 66.3%.
Gevo (GEVO - Free Report) is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate earnings per share for the quarter is pegged at 4 cents, which indicates a year-over-year increase of 233.3%.
Ending the week on a bearish note, Bloom Energy (BE -12.86%) stock is powering down. The company reported third-quarter 2026 financial results yesterday after the market closed, which appear to have left investors unimpressed. Providing more fodder for the bears, two firms have slashed their expectations on the hydrogen stock.
As of 1:21 p.m. ET, Bloom Energy shares are down 12.9%.
Image source: Getty Images.
Operating cash flow plummets to negative $27.1 millionIn Q3 2026, Bloom Energy reported cash from operations of negative $27.1 million, a notable decrease from the positive $226.4 million reported in Q2 2026 and the positive $19.7 million reported in Q3 2025.
$189.77-$28.01 (-12.86%)
NYSE · As of 1:17 PM ET 10/23/26
The company's sharp turnaround in operating cash flow belies the strong income statement. In Q3 2026, Bloom Energy reported a new record for quarterly revenue: $1.24 billion, a 138.1% year-over-year increase. Similarly, the company reported diluted earnings per share (EPS) of $0.78, improving dramatically from the negative $0.10 it reported during the same period last year.
In the wake of Bloom Energy's financial report, Roth Capital analyst Chip Moore slashed the price target to $230 from $260, maintaining a neutral rating. Similarly, JPMorgan cut its price target to $292 from $314, and BTIG lowered its price target to $250 from $295. While analysts had different reasons for reducing the price targets, one common factor was the stock's high valuation. Currently, Bloom shares are trading at 132.8 times trailing earnings.
Is Bloom Energy stock a buy after powering down today?While operating cash flow turned negative in the last quarter, it's hardly a reason for investors to run for the hills. The company has distinguished itself among other hydrogen stocks in its ability to consistently generate operating cash flow, the recent quarter notwithstanding. For now, the better course of action for current shareholders would be to sit back and see what the company reports next quarter.
JPMorgan Chase is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and JPMorgan Chase. The Motley Fool has a disclosure policy.
Bloom Energy topped analysts' expectations for the top and bottom line in the third quarter, and the fuel-cell systems provider lifted its full-year revenue guidance. But investors are selling the stock in droves.
Key Takeaways Boston Beer's Q3 adjusted EPS rose 2.8% to $4.37, while revenues fell 3.2% to $520.1 million.SAM's shipments declined 4.9%, but pricing, product mix and brewery efficiencies lifted gross margin.SAM raised its 2026 adjusted EPS outlook to $9-$10.50 despite expectations of weak shipment volumes. The Boston Beer Company, Inc. (SAM - Free Report) reported mixed third-quarter 2026 results, with earnings surpassing the Zacks Consensus Estimate but revenues falling short. Adjusted earnings per share (EPS) of $4.37 beat the consensus estimate of $4.30. The figure increased 2.8% from $4.25 in the year-ago quarter.
Net revenues declined 3.2% year over year to $520.1 million, missing the consensus estimate of $523 million. Lower shipment volumes weighed on sales, while favorable pricing, product mix and improved brewery efficiencies supported profitability.
This Zacks Rank #3 (Hold) company’s shares have gained 8.7% over the past three months compared with the industry’s 4.1% growth.
Image Source: Zacks Investment Research
SAM Faces Volume Pressure Amid Mixed Brand TrendsBoston Beer's depletions declined 5% year over year. Shipment volumes decreased 4.9% to approximately 1.8 million barrels, reflecting continued weakness across several established brands.
Declines in Twisted Tea, Truly and Samuel Adams were partially offset by growth in Sun Cruiser and Angry Orchard. Sun Cruiser delivered approximately 60% growth in tracked channels during the quarter, while Angry Orchard recorded its sixth consecutive quarter of growth.
Distributor inventories averaged approximately four weeks on hand at quarter-end compared with four and a half weeks in the prior-year period. Management considered inventory levels appropriate.
Boston Beer's Margin Gains Offset Cost PressuresGross margin expanded 90 basis points (bps) year over year to 51.7% compared with 50.8% in the third quarter of 2025. Favorable product mix, pricing actions, procurement savings and improved brewery efficiencies supported the increase.
These benefits were partially offset by higher commodity and tariff costs. Shortfall fees and noncash expenses associated with third-party production prepayments totaled $1.6 million, reducing gross margin by approximately 31 bps.
Management highlighted continued progress in its supply-chain transformation. The company produced 98% of domestic volumes internally during the quarter compared with 89% a year earlier.
SAM's Advertising Expenses Remain SteadyAdvertising, promotional and selling expenses remained nearly flat year over year at $165.2 million. Freight expenses increased $9.5 million as higher transportation rates outweighed benefits from lower shipment volumes.
General and administrative expenses decreased $2.1 million to $42.9 million, primarily due to lower salary and benefit costs.
Boston Beer Maintains Strong Cash PositionBoston Beer ended the quarter with cash and cash equivalents of $308.1 million and no debt. The company also had $150 million available under its revolving credit facility.
Net cash provided by operating activities totaled $194.2 million during the first 39 weeks of 2026 compared with $230.2 million in the year-ago period. Capital expenditures amounted to $31.2 million, down from $36.7 million.
The company repurchased $79.5 million of Class A common shares from Dec. 28, 2025, through Oct. 16, 2026. Approximately $149 million remained under its board-authorized $1.6 billion share repurchase limit.
SAM Targets Innovation and Market Share RecoveryManagement remains focused on improving market share trends and expanding higher-margin product offerings. Sun Cruiser continues to benefit from distribution gains and strong consumer demand, while Angry Orchard maintains positive momentum.
Boston Beer is also expanding its innovation portfolio. Rally Dog Vodka Ade and Lytt Electric Coolers are scheduled for national availability in 2027, creating additional opportunities in emerging ready-to-drink beverage categories.
Meanwhile, management expects modest shipment growth in the fourth quarter, aided by prior-year inventory adjustments and shipment timing. The company anticipates its most pronounced year-over-year gross margin improvement in the final quarter, supported by lower shortfall fees.
SAM Raises Lower End of 2026 Earnings OutlookBoston Beer revised its 2026 guidance, reflecting continued volume softness alongside improving operational productivity. The company now expects depletions and shipments to decline by mid-single-digit percentages compared with its previous projection of low-to-mid-single-digit declines.
Price increases are likely to be 1-2%. The gross margin outlook was raised to 49-50% from 48.5-50%, supported by productivity savings, improved product mix and lower anticipated tariff costs. Expected tariff expenses were reduced to $18-$22 million from $20-$30 million. Advertising, promotion and selling expenses are likely to remain nearly flat year over year.
Adjusted EPS is now projected at $9-$10.50 compared with the prior range of $8.50-$10.50. The company also lowered its capital spending outlook to $55-$70 million from $60-$80 million.
Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Utz Brands, Inc. (UTZ - Free Report) , which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a rise of 3.7% from the year-ago number.
Darling Ingredients Inc. (DAR - Free Report) , which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2.
The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 12.2% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Vistra Corp. (VST - Free Report) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 23.37%.
For the last reported quarter, Vistra came out with earnings of $1.8 per share versus the Zacks Consensus Estimate of $1.54 per share, representing a surprise of 16.88%. For the previous quarter, the company was expected to post earnings of $2.21 per share and it actually produced earnings of $2.87 per share, delivering a surprise of 29.86%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Vistra lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Vistra has an Earnings ESP of +8.20% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 6, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways CURLF raised its hostile Aurora bid to $1 cash and 0.4013 shares per share, but Aurora rejected it.Curaleaf's first-half 2026 revenues rose 8% to $664.3 million, while adjusted EBITDA margin fell to 20.6%.CURLF targets $35-$40 million in SG&A savings, but competition and pricing pressure remain key challenges.
Curaleaf Holdings (CURLF - Free Report) has added a new dimension to its growth strategy by pursuing a hostile takeover of Aurora Cannabis (ACB - Free Report) . While the proposed transaction could reshape Curaleaf's growth strategy, it also raises questions about deal execution, shareholder value and the potential implications for the company's existing business.
CURLF’s Bid Faces ResistanceCuraleaf formally launched its bid to acquire Aurora Cannabis in August, offering Aurora shareholders $0.75 in cash and 0.3463 CURLF shares for each ACB share. Based on Curaleaf’s share price before the announcement, the offer was worth approximately $4 per Aurora share, with the total value capped at $5 per share.
However, the bid was hostile from the beginning, as Curaleaf said Aurora had not responded meaningfully to its efforts to discuss a deal. ACB disputed the proposal’s merits, claiming it benefited Curaleaf more than its own shareholders. It also argued that the proposal undervalued its international medical cannabis operations and raised concerns about Curaleaf’s financial position.
At the beginning of October, Curaleaf improved its offer, raising the cash payment to $1 and the stock portion to 0.4013 CURLF shares per ACB share. The revised proposal increased the implied value to $5 per share and the maximum consideration to $6. Curaleaf also extended the offer deadline to Dec. 4, 2026.
Aurora’s board of directors rejected the revised offer last week, again arguing that it undervalued the company, while its special committee continues exploring other options. Curaleaf later criticized Aurora for refusing to share confidential information with it while allowing other potential buyers access. The takeover dispute remains unresolved.
With the takeover's outcome still uncertain, investors should also examine Curaleaf's broader business fundamentals, growth prospects and competitive position to determine if it remains worth considering.
CURLF’s Business Outlook Improves, Challenges RemainCuraleaf's business is showing signs of recovery, supported by improving U.S. operations, stronger wholesale demand and continued growth in international medical cannabis markets. It reported first-half 2026 revenues of $664.3 million, up 8% year over year. The company’s domestic business has returned to growth, while product innovation and retail expansion are helping strengthen its market position. Curaleaf continues to expand its presence, bringing its footprint to 80 locations in Florida and 190 nationwide. International revenues increased 30% from the prior-year period, highlighting the strength of Curaleaf's expanding presence in European medical cannabis markets.
Management also reported a 10% increase in retail transactions in the second quarter of 2026, which was partially offset by a roughly 4% decline in average unit retail pricing. These developments suggest that Curaleaf's growth is being supported by stronger customer traffic, although continued pricing pressure remains a challenge.
Margins, however, require closer attention. In the second quarter, Curaleaf's gross margin improved to 50%, up 70 basis points (bps) year over year, reflecting cultivation efficiencies, labor cost controls and a better product mix. Yet, adjusted EBITDA margin declined 120 bps to 20.6%. The company’s operating expenses also moved north, limiting the benefit of higher sales and improved gross margins. The key challenge is not only to maintain revenue growth but also to improve operating profitability.
To address the rise in expenses, management is targeting $35-$40 million in selling, general and administrative (SG&A) cost reductions over the next 12 months. Curaleaf also plans to increase the share of its international product supply sourced internally from approximately 20% to 50-75% over the next six to 12 months, aiming to reduce supply-chain volatility, improve European margins and lower inventory requirements.
If these initiatives deliver, they could improve profitability and cash generation. However, their success remains uncertain, particularly as international growth brings supply challenges and competitive pricing pressures persist.
Competition Remains IntenseCuraleaf faces competition from other multi-state cannabis operators that are expanding their retail presence and strengthening their branded-product businesses. Green Thumb Industries (GTBIF - Free Report) and TerrAscend (TSNDF - Free Report) are two notable competitors, with both pursuing expansion in markets where Curaleaf also operates.
Green Thumb has continued to expand its Florida retail network, bringing its footprint in the state to 26 locations and 120 stores nationwide. Its dispensaries offer brands such as RYTHM, Dogwalkers and &Shine, strengthening its retail reach and product distribution. As CURLF continues to expand its own Florida network, GTBIF’s growing presence could add to competition.
TerrAscend has also strengthened its presence in New Jersey by completing its acquisition of Aunt Mary's Dispensary last month. This retail store generates more than $10 million in annualized revenues, and TerrAscend expects the transaction to contribute immediately to EBITDA and free cash flow. The company also sees opportunities to improve the store's performance through its existing brand portfolio. This expansion increases TerrAscend's reach in a market where Curaleaf also competes, adding pressure on the latter to retain customers and defend its market position.
CURLF Stock Performance & EstimatesYear to date, shares of Curaleaf Holdings have risen 7% against the industry’s 18% decline.
Image Source: Zacks Investment Research
The bottom-line estimates for 2026 and 2027 have remained constant over the past 60 days.
Image Source: Zacks Investment Research
How to Play CURLF Stock Now?Curaleaf's improving revenue growth, expanding retail presence and international opportunities are encouraging. However, margin pressure and rising operating expenses remain concerns, while management still needs to demonstrate that its cost-saving initiatives can translate into stronger profitability. The proposed Aurora acquisition adds another layer of uncertainty, as the deal's outcome remains unclear and could have implications for Curaleaf's financial flexibility and growth strategy.
Meanwhile, competition could make it more challenging for Curaleaf to maintain its market position and pricing power. Given these mixed signals and its Zacks Rank #3 (Hold), investors may adopt a cautious approach until Curaleaf improves its operating performance and uncertainty surrounding the Aurora bid eases.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
