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Second Quarter Highlights1

Net Revenues +4.1%, Organic Net Revenues +2.2%, Volume/Mix +0.7%

Diluted EPS increased 144.9% to $1.20
Adjusted EPS was $0.73 which declined -2.7% on a constant currency basis

Year-to-date cash provided by operating activities was $1.3 billion
and Free Cash Flow was $0.7 billion

Return of capital to shareholders was $1.5 billion in the first half of the year
Announcing +4% increase to quarterly dividend

CHICAGO, July 28, 2026 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its second quarter 2026 results.

“Our second quarter results were marked by robust top-line expansion, coupled with volume growth and share improvement, along with improved profitability. We delivered continued strength across our Emerging Markets, as well as strong growth and elevated execution in our North America business. In Europe, share dynamics are showing early positive trends, and we believe the business is well-positioned to build on that progress," said Dirk Van de Put, Chair and Chief Executive Officer. "We are encouraged by the momentum in our business, and we remain focused on executional excellence coupled with reinvesting behind our brands to enable sustained performance for years to come.”

Net Revenue

$ in millionsReported
Net Revenues Organic Net Revenue Growth Q2 2026
 % Chg
vs PY Q2 2026 Vol/Mix PricingQuarter 2          Latin America$1,374  15.1% 8.4% 0.5 pp 7.9 ppAsia, Middle East & Africa 1,971  8.2  7.1  5.2  1.9 Europe 3,377  (1.0) (3.5) (2.1) (1.4)North America 2,633  3.0  3.4  1.2  2.2 Mondelēz International$9,355  4.1% 2.2% 0.7 pp 1.5 ppEmerging Markets$3,909  7.4% 4.4% 1.6 pp 2.8 ppDeveloped Markets$5,446  1.9% 0.7% — pp 0.7 pp           June Year-to-DateYTD 2026
   YTD 2026    Latin America$2,722  13.6% 6.7% (1.3) pp 8.0 ppAsia, Middle East & Africa 4,275  11.4  9.3  5.5  3.8 Europe 7,248  4.1  (2.0) (2.7) 0.7 North America 5,190  1.7  2.0  0.4  1.6 Mondelēz International$19,435  6.2% 2.6% 0.1 pp 2.5 ppEmerging Markets$8,058  9.5% 5.3% 1.0 pp 4.3 ppDeveloped Markets$11,377  4.0% 0.8% (0.5) pp 1.3 pp               Operating Income and Diluted EPS

$ in millions, except per share dataReported Adjusted Q2 2026 vs PY
(Rpt Fx) Q2 2026 vs PY
(Rpt Fx) vs PY
(Cst Fx)Quarter 2         Gross Profit$3,986  35.7% $3,182  4.9% 3.0%Gross Profit Margin 42.6% 9.9 pp  34.0% 0.2 pp  Operating Income$1,946  66.0% $1,222  (4.8)% (6.1)%Operating Income Margin 20.8% 7.8 pp  13.1% (1.2) pp  Net Earnings2$1,548  141.5% $943  (0.2)% (2.9)%Diluted EPS$1.20  144.9% $0.73  —% (2.7)%          June Year-to-DateYTD 2026   YTD 2026    Gross Profit$6,789  26.5% $6,273  2.1% (1.2)%Gross Profit Margin 34.9% 5.6 pp  32.3% (1.3) pp  Operating Income$2,754  48.7% $2,404  (9.5)% (12.8)%Operating Income Margin 14.2% 4.1 pp  12.4% (2.1) pp  Net Earnings2$2,108  102.1% $1,802  (5.5)% (9.6)%Diluted EPS$1.64  105.0% $1.40  (4.8)% (8.8)%                  Second Quarter Commentary

Net revenues increased 4.1 percent driven by our underlying Organic Net Revenue growth of 2.2 percent and favorable currency-related items, partially offset by lapping prior year net revenue from a divestiture. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix. Gross profit increased $1,049 million, and gross profit margin increased 990 basis points to 42.6 percent primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives and by an increase in Adjusted Gross Profit1 margin, partially offset by incremental costs due to geopolitical conflicts, higher costs incurred for the ERP System Implementation program and an unfavorable year-over-year change in acquisition-related items. Adjusted Gross Profit increased $92 million at constant currency and Adjusted Gross Profit margin increased 20 basis points to 34.0 percent driven primarily by higher net pricing and lower manufacturing costs driven by productivity, partially offset by higher raw material costs. Operating income increased $774 million, and operating income margin was 20.8 percent, up 780 basis points due primarily to a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, partially offset by lower Adjusted Operating Income1 margin, an unfavorable year-over-year change in acquisition-related items, higher costs incurred for the ERP System Implementation program, higher restructuring charges and incremental costs due to geopolitical conflicts.  Adjusted Operating Income decreased $78 million at constant currency and Adjusted Operating Income margin decreased 120 basis points to 13.1 percent, driven primarily by higher raw material costs, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs, partially offset by higher net pricing and lower manufacturing costs driven by productivity. Diluted EPS was $1.20, up 144.9 percent, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, lower pension participation charges and initial impacts from enacted tax law changes. These favorable items were  partially offset by a decrease in Adjusted EPS1, higher acquisition-related items, higher costs incurred for the ERP System Implementation program and incremental costs due to geopolitical conflicts. Adjusted EPS was $0.73, down 2.7 percent on a constant currency basis. The decrease in Adjusted EPS1 was driven by operating declines and higher interest and other expense, partially offset by lower income tax and favorable currency-related items. 2026 Outlook

Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including future changes in foreign currency rates. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

For 2026, the company now expects at least 2 percent Organic Net Revenue growth, which reflects the strength of its year-to-date performance. The company maintains its Adjusted EPS growth in the range of flat to 5 percent on a constant currency basis. The company also expects 2026 Free Cash Flow of approximately $3 billion. The company currently estimates currency translation would increase 2026 net revenue growth by approximately 2.0 percent3 and increase Adjusted EPS by $0.053.

Outlook is provided in the context of greater than usual volatility, including geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any potential tariff changes to United States-Mexico-Canada Agreement ("USMCA") compliant trade.

Conference Call

Mondelēz International will host a conference call for investors at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the company’s web site.

About Mondelēz International

Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.

End Notes

Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in both reported and constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.Net earnings attributable to Mondelēz International.Currency estimate is based on published rates from XE.com on July 17, 2026. Additional Definitions

Emerging markets consist of the entire Latin America region; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,” “commitment,” “outlook,” “continue” or any other similar words

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by ongoing macroeconomic volatility and uncertainty, including current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:

weakness and/or volatility in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation) and the instability of certain financial institutions;risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets;volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities;geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;competition and our response to channel shifts and pricing and other competitive pressures;pricing actions and customer and consumer responses to such actions;promotion and protection of our reputation and brand image;weakness in consumer spending and/or changes in consumer preferences and demand, including evolving health and wellness trends, and our ability to predict, identify, interpret and meet these changes;the outcome and effects on us of legal and tax proceedings and government investigations;use of information technology and third party service providers;unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program;our investments and our ownership interests in those investments;restructuring actions and other transformation initiatives not yielding the anticipated benefits;changes in the assumptions on which restructuring actions or other transformation initiatives are based;the impact of climate change on our supply chain and operations;global or regional health pandemics or epidemics;consolidation of retail customers and competition with retailer and other economy brands;changes in our relationships with customers, suppliers or distributors;management of our workforce and shifts in labor availability or labor costs;compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions, including evolving and potentially inconsistent federal, state, local and foreign requirements regarding food ingredients, additives, labeling and marketing;perceived or actual product quality issues or product recalls, or changing consumer, media, governmental or scientific perceptions of our products or their ingredients;failure to maintain effective internal control over financial reporting or disclosure controls and procedures;our ability to protect our intellectual property and intangible assets;tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;changes in currency exchange rates, controls and restrictions;volatility of and access to capital or other markets, interest rates, the effectiveness of our cash management programs and our liquidity;pension costs;significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; andthe risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

  Schedule 1Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Statements of Earnings(in millions of U.S. dollars and shares, except per share data)(Unaudited)            For the Three Months
Ended June 30,  For the Six Months
Ended June 30,   2026   2025    2026   2025 Net revenues$9,355  $8,984   $19,435  $18,297 Cost of sales (5,369)  (6,047)   (12,646)  (12,930) Gross profit 3,986   2,937    6,789   5,367 Selling, general and administrative expenses (2,001)  (1,725)   (3,917)  (3,436)Asset impairment and exit costs (13)  (2)   (66)  (4)Gain on divestiture -   -    1   - Amortization of intangible assets (26)  (38)   (53)  (75) Operating income 1,946   1,172    2,754   1,852 Benefit plan non-service income/(expense) 27   (264)   58   (246)Interest and other expense, net (74)  (53)   (138)  (206) Earnings before income taxes 1,899   855    2,674   1,400 Income tax provision (364)  (230)   (592)  (384)Loss on equity method investment transactions -   -    (3)  - Equity method investment net earnings 17   19    37   35  Net earnings 1,552   644    2,116   1,051  less: Noncontrolling interest earnings (4)  (3)   (8)  (8) Net earnings attributable to Mondelēz International$1,548  $641   $2,108  $1,043 Per share data:         Basic earnings per share attributable to Mondelēz International$1.21  $0.49   $1.64  $0.80  Diluted earnings per share attributable to Mondelēz International$1.20  $0.49   $1.64  $0.80            Schedule 2Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in millions of U.S. dollars)(Unaudited)     June 30, December 31,  2026   2025 ASSETS   Cash and cash equivalents$1,716  $2,125 Trade receivables 4,010   3,903 Other receivables 998   955 Inventories 4,405   4,419 Other current assets 1,809   1,549 Total current assets 12,938   12,951 Property, plant and equipment, net 10,649   10,667 Operating lease right-of-use assets 732   731 Goodwill 24,180   24,336 Intangible assets, net 19,509   19,628 Prepaid pension assets 1,251   1,220 Deferred income taxes 184   336 Equity method investments 619   667 Other assets 1,185   951 TOTAL ASSETS$71,247  $71,487 LIABILITIES   Short-term borrowings$2,327  $2,688 Current portion of long-term debt 2,663   1,295 Accounts payable 9,411   10,139 Accrued marketing 2,612   2,787 Accrued employment costs 875   1,000 Other current liabilities 3,705   3,955 Total current liabilities 21,593   21,864 Long-term debt 16,460   17,222 Long-term operating lease liabilities 609   599 Deferred income taxes 3,539   3,530 Accrued pension costs 370   422 Accrued postretirement health care costs 72   74 Other liabilities 1,912   1,885 TOTAL LIABILITIES 44,555   45,596 EQUITY   Common Stock -   - Additional paid-in capital 32,333   32,322 Retained earnings 37,233   36,413 Accumulated other comprehensive losses (11,283)  (11,364)Treasury stock (31,644)  (31,533)Total Mondelēz International Shareholders' Equity 26,639   25,838 Noncontrolling interest 53   53 TOTAL EQUITY 26,692   25,891 TOTAL LIABILITIES AND EQUITY$71,247  $71,487      Schedule 3Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in millions of U.S. dollars)(Unaudited)     For the Six Months Ended June 30,  2026   2025 CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES   Net earnings$2,116  $1,051 Adjustments to reconcile net earnings to operating cash flows:   Depreciation and amortization 693   663 Stock-based compensation expense 87   65 Deferred income tax provision/(benefit) 149   (69)Asset impairments and accelerated depreciation 10   9 Gain on divestiture (1)  - Loss on equity method investment transactions 3   - Equity method investment net earnings (37)  (35)Distributions from equity method investments 44   44 Unrealized (gain)/loss on derivative contracts (509)  800 Contingent consideration adjustments 3   (38)Other non-cash items, net (5)  105 Changes in assets and liabilities, net of acquisitions and divestitures:   Receivables, net (424)  536 Inventories (16)  (775)Accounts payable (538)  (177)Other current assets 142   108 Other current liabilities (296)  (1,125)Change in pension and postretirement assets and liabilities, net (99)  238 Net cash provided by operating activities 1,322   1,400 CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES   Capital expenditures (654)  (582)Acquisitions, net of cash received -   (15)Proceeds from divestitures 1   4 Proceeds from derivative settlements 179   19 Payments for derivative settlements (270)  (55)Proceeds from investments 25   30 Proceeds from sale of property, plant and equipment and other 3   8 Net cash used in investing activities (716)  (591)CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES   Issuance of Commercial paper, maturities greater than 90 days 1,584   - Repayments of commercial paper, maturities greater than 90 days (587)  - Net (repayment)/issuance of short-term borrowings (1,313)  1,589 Long-term debt proceeds 1,074   1,594 Long-term debt repayments (304)  (1,242)Repurchases of Common Stock (212)  (1,653)Dividends paid (1,287)  (1,233)Other 6   83 Net cash used in financing activities (1,039)  (862)Effect of exchange rate changes on cash, cash equivalents and restricted cash (3)  240 Cash, cash equivalents and restricted cash:   (Decrease)/increase (436)  187 Balance at beginning of period 2,195   1,400 Balance at end of period$1,759  $1,587      Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)

NON-GAAP FINANCIAL MEASURES

In discussing its financial results and guidance, the company presents the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”): Organic Net Revenue growth, Adjusted Gross Profit, Adjusted Operating Income, Adjusted Segment Operating Income, Adjusted Earnings Per Share (“EPS”) and Free Cash Flow. The company also presents financial information, including certain of these non-GAAP financial measures, on a constant currency basis.

Management uses non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. The company believes that non-GAAP financial measures, when used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results. The company also believes that presenting these measures allows investors to view our performance using the same measures that management and our Board of Directors use in evaluating the company’s business performance and trends. However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES

The company’s primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results. As new events or circumstances arise, these definitions could change. When these definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions.

“Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures and currency-related items. The company believes that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our emerging markets and developed markets.

“Adjusted Gross Profit” is defined as gross profit (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges, certain acquisition-related items, certain divestiture-related items, mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions, incremental costs due to geopolitical conflicts and certain operating costs from the ERP System Implementation program. The company also presents Adjusted Gross Profit margin, which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the company’s Adjusted Gross Profit on a constant currency basis.

“Adjusted Operating Income” and “Adjusted Segment Operating Income” are defined as operating income or segment operating income (the most comparable U.S. GAAP financial measures) excluding, when they occur, the impacts of the items listed in the Adjusted Gross Profit definition as well as goodwill and intangible asset impairment charges, remeasurement of net monetary position of highly inflationary countries; resolution of tax matters and operating costs from the ERP System Implementation program. The company also presents Adjusted Operating Income margin and Adjusted Segment Operating Income margin, which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. The company also evaluates growth in the company’s Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis.

“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of the items listed in the Adjusted Operating Income definition, as well as pension participation changes, initial impacts from enacted tax law changes and gains or losses on equity method investment transactions. The tax impacts of the items excluded from the company’s U.S. GAAP results were computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis.

“Free Cash Flow” is defined as net cash provided by operating activities (the most comparable U.S. GAAP financial measure) less capital expenditures. Free Cash Flow is the company’s primary measure used to monitor its cash flow performance.

See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable U.S. GAAP financial measures for the three and six months ended June 30, 2026 and June 30, 2025. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the company’s results.

SEGMENT OPERATING INCOME
The company uses segment operating income to evaluate segment performance and allocate resources. The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes certain mark-to-market impacts on commodity and foreign currency derivatives (which are primarily a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. The company excludes these items from segment operating income in order to provide better transparency of its segment operating results. Furthermore, the company centrally manages benefit plan non-service income and interest and other expense, net. The company does not present the items above by segment because they are excluded from the segment profitability measure that management reviews.

ITEMS IMPACTING COMPARABILITY OF FINANCIAL RESULTS
The company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The company identifies these based on how management views the company’s business; makes financial, operating and planning decisions; and evaluates the company’s ongoing performance. The below items are adjusted for in the company’s non-GAAP financial measures to better facilitate comparisons of its underlying performance across periods, as they are highly variable or unusual and of a size that may substantially impact its reported operations for a period. In addition, the company discloses the impact of currency-related items on its financial results to reflect results on a constant currency basis. See below for a description of adjustments to the company’s U.S. GAAP financial measures included herein.

Restructuring charges – Beginning in the fourth quarter of 2025, the company initiated new restructuring actions to reduce its cost structure and streamline its operations. The charges associated with those actions primarily relate to severance and other implementation costs. The company completed its previous Simplify to Grow Program in 2024. Following the completion of that earlier restructuring program, any adjustments to the liabilities for previously recorded charges, which were immaterial for each period presented, continue to be reflected within this item.

Mark-to-market impacts from derivatives – The company excludes unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from its non-GAAP earnings measures. The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized. Since the company purchases commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, the company makes this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of its underlying operating performance across periods.

Acquisition-related items – Includes acquisition-related costs, acquisition integration costs, contingent consideration adjustments, inventory step-ups and gains from acquisitions. Acquisition-related costs include third-party advisor, investment banking and legal fees. Acquisition integration costs include costs related to the integration of operations from acquisitions. Contingent consideration adjustments include any changes made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense. Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains from the remeasurement of an existing noncontrolling investment to fair value when the company acquires the remaining equity shares of the investee.

Divestiture-related items – Includes operating results from divestitures, divestiture-related costs and gains or losses on divestitures. Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments. Divestiture-related costs include costs incurred in relation to the preparation and completion of divestiture transactions (including one-time costs such as severance related to the elimination of stranded costs) as well as costs incurred associated with publicly announced processes to sell businesses.

Incremental costs due to geopolitical conflicts – Reflects impacts related to the ongoing conflicts in the Middle East and Ukraine. Includes costs related to transportation surcharges, evacuation costs and committed compensation.

ERP System Implementation costs – The company’s ERP System Implementation program is being implemented by region in several phases with spending continuing over the next three years, with expected completion by year-end 2028. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations. These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of the company's existing SAP financial systems and various other expenses, all associated with the implementation of the company's information technology upgrades.

Remeasurement of net monetary position of highly inflationary countries – The company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary. The company excludes remeasurement gains and losses of the monetary assets and liabilities of its subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective net monetary assets or liabilities from its non-GAAP earnings measures.

Pension participation changes – Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including settlement losses from full or partial buyouts of the company's pension plans, as well as costs incurred when employee groups are withdrawn from multiemployer pension plans. The company excludes these charges from its non-GAAP results because those amounts do not reflect the company's ongoing pension obligations.

Initial impacts from enacted tax law changes – Initial impacts from enacted tax law changes include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms. We exclude initial impacts from enacted tax law changes from our non-GAAP financial measures as they do not reflect our ongoing tax obligations under the enacted tax law.

Gains and losses on equity method investment transactions – The company excludes gains and losses from partial or full sales of equity method investments as well as impairments or other non-routine transactions related to those investments.

Currency-related items – Management also evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company's non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and extreme pricing increases in Argentina.

Currency translation rate changes – the company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company’s financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period.  Therefore, currency translation rate changes are equal to current period local currency operating results multiplied by the change in average foreign currency exchange rates between the current fiscal period and the corresponding period of the prior fiscal year.Extreme Pricing – during December 2023, the Argentinean peso significantly devalued. The peso's devaluation and potential resulting distortion on the company's non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in the company's decision to exclude the impact of pricing increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 2024. The benchmark of 26% represents the minimum annual inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S. GAAP. OUTLOOK
The company’s Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2026 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, intangible asset impairment charges, acquisitions and divestitures. Because GAAP financial measures on a forward-looking basis are not accessible and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the outlook. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2026 because the company is unable to predict during this period the impacts from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile the projected Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense and Adjusted Effective Tax Rate to the company's projected reported diluted EPS growth, reported interest and other expense, net, and reported effective tax rate, respectively, for full-year 2026 due to several factors, which could include: the company's ability to predict during this period mark-to-market impacts from commodity and foreign currency derivative contracts, impacts of any impairment charges that may arise in a future period and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile the projected Free Cash Flow to the projected net cash from operating activities for full-year 2026 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amounts of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.

       Schedule 4
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Revenues(in millions of U.S. dollars)(Unaudited)                Latin America AMEA Europe North America Mondelēz International  Emerging Markets Developed MarketsFor the Three Months Ended June 30, 2026              Reported (GAAP)$1,374  $1,971  $3,377  $2,633  $9,355   $3,909  $5,446 Currency-related items (80)  (21)  (83)  1   (183)   (111)  (72)Organic (Non-GAAP)$1,294  $1,950  $3,294  $2,634  $9,172   $3,798  $5,374                For the Three Months Ended June 30, 2025              Reported (GAAP)$1,194  $1,821  $3,412  $2,557  $8,984   $3,638  $5,346 Divestitures -   -   -   (10)  (10)   -   (10)Organic (Non-GAAP)$1,194  $1,821  $3,412  $2,547  $8,974   $3,638  $5,336                % Change - Reported (GAAP) 15.1%  8.2%  (1.0)%  3.0%  4.1%   7.4%  1.9%Divestitures- pp - pp - pp 0.4 pp 0.1 pp  - pp 0.2 ppCurrency-related items (6.7)  (1.1)  (2.5)  -   (2.0)   (3.0)  (1.4)% Change - Organic (Non-GAAP) 8.4%  7.1%  (3.5)%  3.4%  2.2%   4.4%  0.7%               Vol/Mix0.5 pp 5.2 pp (2.1)pp 1.2 pp 0.7 pp  1.6 pp - ppPricing 7.9   1.9   (1.4)  2.2   1.5    2.8   0.7                                Latin America AMEA Europe North America Mondelēz International  Emerging Markets Developed MarketsFor the Six Months Ended June 30, 2026              Reported (GAAP)$2,722  $4,275  $7,248  $5,190  $19,435   $8,058  $11,377 Currency-related items (164)  (81)  (427)  (10)  (682)   (304)  (378)Organic (Non-GAAP)$2,558  $4,194  $6,821  $5,180  $18,753   $7,754  $10,999                For the Six Months Ended June 30, 2025              Reported (GAAP)$2,397  $3,837  $6,962  $5,101  $18,297   $7,361  $10,936 Divestitures -   -   -   (21)  (21)   -   (21)Organic (Non-GAAP)$2,397  $3,837  $6,962  $5,080  $18,276   $7,361  $10,915                % Change - Reported (GAAP) 13.6%  11.4%  4.1%  1.7%  6.2%   9.5%  4.0%Divestitures- pp - pp - pp 0.5 pp 0.1 pp  - pp 0.2 ppCurrency-related items (6.9)  (2.1)  (6.1)  (0.2)  (3.7)   (4.2)  (3.4)% Change - Organic (Non-GAAP) 6.7%  9.3%  (2.0)%  2.0%  2.6%   5.3%  0.8%               Vol/Mix(1.3)pp 5.5 pp (2.7)pp 0.4 pp 0.1 pp  1.0 pp (0.5)ppPricing 8.0   3.8   0.7   1.6   2.5    4.3   1.3                                           Schedule 5a
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited)                      Gross Profit  Operating IncomeFor the Three Months Ended June 30, 2026Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$3,986   $166  $254  $382  $431  $827  $(88) $(26) $- $1,946 Restructuring charges -    3   -   3   2   -   1   -   -  9 Mark-to-market (gains)/losses from derivatives (827)   -   -   -   -   (827)  -   -   -  (827)Acquisition-related items 1    -   11   1   -   -   1   -   -  13 Incremental costs due to geopolitical conflicts 11    -   11   -   -   -   -   -   -  11 ERP System Implementation costs 10    19   2   9   29   -   -   -   -  59 Remeasurement of net monetary position 1    4   4   4   -   -   (1)  -   -  11 Adjusted (Non-GAAP)$3,182   $192  $282  $399  $462  $-  $(87) $(26) $- $1,222 Currency-related items (58)   (12)  (1)  (6)  -   -   1   1   -  (17)Adjusted @ Constant FX (Non-GAAP)$3,124   $180  $281  $393  $462  $-  $(86) $(25) $- $1,205                      % Change - Reported (GAAP) 35.7%   24.8%  (6.3)%  (25.7)%  (5.1)% n/m  (27.5)%  31.6% n/m  66.0%% Change - Adjusted (Non-GAAP) 4.9%   26.3%  0.0%  (21.8)%  4.3% n/m  (31.8)%  31.6% n/m  (4.8)%% Change - Adjusted @ Constant FX (Non-GAAP) 3.0%   18.4%  (0.4)%  (22.9)%  4.3% n/m  (30.3)%  34.2% n/m  (6.1)%                     Reported Margin % 42.6%   12.1%  12.9%  11.3%  16.4%          20.8%Reported Margin pp change9.9 pp  1.0 pp (2.0) pp (3.8) pp (1.4) pp         7.8 ppAdjusted Margin % 34.0%   14.0%  14.3%  11.8%  17.5%          13.1%Adjusted Margin pp change0.2 pp  1.3 pp (1.2) pp (3.1) pp 0.1 pp         (1.2) pp                      Gross Profit  Operating IncomeFor the Three Months Ended June 30, 2025Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$2,937   $133  $271  $514  $454  $(93) $(69) $(38) $- $1,172 Restructuring charges (1)   -   -   (3)  -   -   (1)  -   -  (4)Mark-to-market (gains)/losses from derivatives 93    -   -   -   -   93   -   -   -  93 Acquisition-related items (1)   2   13   -   (37)  -   1   -   -  (21)Divestiture-related items -    -   -   (4)  -   -   1   -   -  (3)Incremental costs due to geopolitical conflicts -    -   -   1   -   -   -   -   -  1 ERP System Implementation costs 5    14   (2)  (2)  26   -   1   -   -  37 Remeasurement of net monetary position (1)   3   -   4   -   -   1   -   -  8 Adjusted (Non-GAAP)$3,032   $152  $282  $510  $443  $-  $(66) $(38) $- $1,283                      Reported Margin % 32.7%   11.1%  14.9%  15.1%  17.8%          13.0%Adjusted Margin % 33.8%   12.7%  15.5%  14.9%  17.4%          14.3%                                  Schedule 5b
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited)                      Gross Profit  Operating IncomeFor the Six Months Ended June 30, 2026Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$6,789   $315  $580  $676  $815  $554  $(134) $(53) $1  $2,754 Restructuring charges -    3   -   46   6   -   1   -   -   56 Mark-to-market (gains)/losses from derivatives (554)   -   -   -   -   (554)  -   -   -   (554)Acquisition-related items -    1   16   2   (12)  -   -   -   -   7 Divestiture-related items -    -   -   -   -   -   -   -   (1)  (1)Incremental costs due to geopolitical conflicts 18    -   17   1   -   -   -   -   -   18 ERP System Implementation costs 20    35   3   21   53   -   (4)  -   -   108 Remeasurement of net monetary position -    3   3   10   -   -   -   -   -   16 Adjusted (Non-GAAP)$6,273   $357  $619  $756  $862  $-  $(137) $(53) $-  $2,404 Currency-related items (208)   (28)  (15)  (44)  (1)  -   -   2   -   (86)Adjusted @ Constant FX (Non-GAAP)$6,065   $329  $604  $712  $861  $-  $(137) $(51) $-  $2,318                      % Change - Reported (GAAP) 26.5%   15.8%  (5.5)%  (30.7)%  (13.2)% n/m  (19.6)%  29.3% n/m  48.7%% Change - Adjusted (Non-GAAP) 2.1%   18.6%  (4.0)%  (23.2)%  (5.8)% n/m  (21.2)%  29.3% n/m  (9.5)%% Change - Adjusted @ Constant FX (Non-GAAP) (1.2)%   9.3%  (6.4)%  (27.6)%  (5.9)% n/m  (21.2)%  32.0% n/m  (12.8)%                     Margin Reported % 34.9%   11.6%  13.6%  9.3%  15.7%          14.2%Margin Reported pp change5.6 pp  0.3 pp (2.4) pp (4.7) pp (2.7) pp         4.1 ppMargin Adjusted % 32.3%   13.1%  14.5%  10.4%  16.6%          12.4%Margin Adjusted pp change(1.3) pp  0.5 pp (2.3) pp (3.7) pp (1.4) pp         (2.1) pp                      Gross Profit  Operating IncomeFor the Six Months Ended June 30, 2025Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$5,367   $272  $614  $976  $939  $(762) $(112) $(75) $-  $1,852 Restructuring charges (1)   (1)  -   (4)  -   -   (1)  -   -   (6)Mark-to-market (gains)/losses from derivatives 766    -   -   -   -   762   -   -   -   762 Acquisition-related items (2)   5   27   -   (61)  -   -   -   -   (29)Divestiture-related items (1)   -   -   (7)  (1)  -   -   -   -   (8)Incremental costs due to geopolitical conflicts -    -   -   1   -   -   -   -   -   1 ERP System Implementation costs 13    22   3   8   38   -   (1)  -   -   70 Remeasurement of net monetary position (1)   3   1   10   -   -   1   -   -   15 Adjusted (Non-GAAP)$6,141   $301  $645  $984  $915  $-  $(113) $(75) $-  $2,657                      Margin Reported % 29.3%   11.3%  16.0%  14.0%  18.4%          10.1%Margin Adjusted % 33.6%   12.6%  16.8%  14.1%  18.0%          14.5%                                   Schedule 6a
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresTax Rate, Net Earnings and Diluted EPS(in millions of U.S. dollars and shares, except per share data)(Unaudited)                      For the Three Months Ended June 30, 2026Operating Income Benefit plan non-service expense / (income) Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$1,946  $(27) $74  $1,899  $364  19.2% $- $(17) $4 $1,548  $1.20 Restructuring charges 9   -   -   9   4     -  -   -  5   - Mark-to-market (gains)/losses from derivatives (827)  -   -   (827)  (172)    -  -   -  (655)  (0.51)Acquisition-related items 13   -   -   13   -     -  -   -  13   0.01 Incremental costs due to geopolitical conflicts 11   -   -   11   -     -  -   -  11   0.01 ERP System Implementation costs 59   -   -   59   15     -  -   -  44   0.03 Remeasurement of net monetary position 11   -   -   11   -     -  -   -  11   0.01 Pension participation changes -   -   (2)  2   -     -  -   -  2   - Initial impacts from enacted tax law changes -   -   -   -   30     -  -   -  (30)  (0.02)Gain on marketable securities -   -   -   -   6     -  -   -  (6)  - Adjusted (Non-GAAP)$1,222  $(27) $72  $1,177  $247  21.0% $- $(17) $4 $943  $0.73 Currency-related items                   (25)  (0.02)Adjusted @ Constant FX (Non-GAAP)                  $918  $0.71 Diluted Average Shares Outstanding                     1,287                       % Change - Reported (GAAP)                   141.5%  144.9%% Change - Adjusted (Non-GAAP)                   (0.2)%  -%% Change - Adjusted @ Constant FX (Non-GAAP)                  (2.9)%  (2.7)%                      For the Three Months Ended June 30, 2025Operating Income Benefit plan non-service expense / (income) Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$1,172  $264  $53  $855  $230  26.9% $- $(19) $3 $641  $0.49 Restructuring charges (4)  -   -   (4)  (2)    -  -   -  (2)  - Mark-to-market (gains)/losses from derivatives 93   -   -   93   16     -  -   -  77   0.06 Acquisition-related items (21)  -   -   (21)  (9)    -  -   -  (12)  (0.01)Divestiture-related items (3)  -   -   (3)  -     -  -   -  (3)  - Incremental costs due to geopolitical conflicts 1   -   -   1   -     -  -   -  1   - ERP System Implementation costs 37   -   -   37   10     -  -   -  27   0.02 Remeasurement of net monetary position 8   -   -   8   -     -  -   -  8   0.01 Pension participation changes -   (282)  (3)  285   73     -  -   -  212   0.16 Initial impacts from enacted tax law changes -   -   -   -   1     -  -   -  (1)  - Gain on marketable securities -   -   -   -   3     -  -   -  (3)  - Adjusted (Non-GAAP)$1,283  $(18) $50  $1,251  $322  25.7% $- $(19) $3 $945  $0.73 Diluted Average Shares Outstanding                     1,299               Schedule 6b
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresTax Rate, Net Earnings and Diluted EPS(in millions of U.S. dollars and shares, except per share data)(Unaudited)                      For the Six Months Ended June 30, 2026Operating Income Benefit plan non-service expense / (income) Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Loss on equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$2,754  $(58) $138  $2,674  $592  22.1% $3  $(37) $8 $2,108  $1.64 Restructuring charges 56   -   -   56   13     -   -   -  43   0.03 Mark-to-market (gains)/losses from derivatives (554)  -   -   (554)  (113)    (1)  -   -  (440)  (0.34)Acquisition-related items 7   -   -   7   (3)    -   -   -  10   0.01 Divestiture-related items (1)  -   -   (1)  -     -   -   -  (1)  - Incremental costs due to geopolitical conflicts 18   -   -   18   -     -   -   -  18   0.01 ERP System Implementation costs 108   -   -   108   28     -   -   -  80   0.06 Remeasurement of net monetary position 16   -   -   16   -     -   -   -  16   0.01 Pension participation changes -   3   (4)  1   -     -   -   -  1   - Initial impacts from enacted tax law changes -   -   -   -   29     -   -   -  (29)  (0.02)Gain on marketable securities -   -   -   -   6     -   -   -  (6)  - Loss on equity method investment transactions -   -   -   -   -     (2)  -   -  2   - Adjusted (Non-GAAP)$2,404  $(55) $134  $2,325  $552  23.7% $-  $(37) $8 $1,802  $1.40 Currency-related items                   (78)  (0.06)Adjusted @ Constant FX (Non-GAAP)                  $1,724  $1.34 Diluted Average Shares Outstanding                     1,286                       % Change - Reported (GAAP)                   102.1%  105.0%% Change - Adjusted (Non-GAAP)                   (5.5)%  (4.8)%% Change - Adjusted @ Constant FX (Non-GAAP)                  (9.6)%  (8.8)%                      For the Six Months Ended June 30, 2025Operating Income Benefit plan non-service expense / (income) Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$1,852  $246  $206  $1,400  $384  27.4% $-  $(35) $8 $1,043  $0.80 Restructuring charges (6)  -   -   (6)  (2)    -   -   -  (4)  - Mark-to-market (gains)/losses from derivatives 762   -   (4)  766   152     -   -   -  614   0.47 Acquisition-related items (29)  -   -   (29)  (14)    -   -   -  (15)  (0.01)Divestiture-related items (8)  -   -   (8)  (1)    -   -   -  (7)  - Incremental costs due to geopolitical conflicts 1   -   -   1   -     -   -   -  1   - ERP System Implementation costs 70   -   -   70   18     -   -   -  52   0.04 Remeasurement of net monetary position 15   -   -   15   -     -   -   -  15   0.01 Pension participation changes -   (282)  (5)  287   73     -   -   -  214   0.16 Initial impacts from enacted tax law changes -   -   -   -   3     -   -   -  (3)  - Gain on marketable securities -   -   -   -   3     -   -   -  (3)  - Adjusted (Non-GAAP)$2,657  $(36) $197  $2,496  $616  24.7% $-  $(35) $8 $1,907  $1.47 Diluted Average Shares Outstanding                     1,301   Schedule 7
Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Cash Provided by Operating Activities to Free Cash Flow(in millions of U.S. dollars)(Unaudited)      For the Six Months Ended June 30, 2026   2025  $ ChangeNet Cash Provided by Operating Activities (GAAP)$1,322  $1,400  $(78)Capital Expenditures (654)  (582)  (72)Free Cash Flow (Non-GAAP)$668  $818  $(150)       Contacts:Tracey Noe (Media)Shep Dunlap (Investors) 1-847-943-56781-847-943-5454 [email protected]@mdlz.com   

Robinhood Markets (NASDAQ:HOOD) could credit new products for strong second-quarter results when the company reports earnings Wednesday after market close.

Here are the key earnings estimates, analyst expectations and items to watch.

Robinhood Q2 Earnings EstimatesAnalysts expect Robinhood to report second-quarter revenue of $1.21 billion, up from $989 million in the year-ago quarter, according to Benzinga Pro data.

The company has missed revenue estimates in two consecutive quarters but has exceeded expectations in seven of the past 10 quarters.

Analysts expect second-quarter earnings per share of 41 cents, compared with 42 cents per share in the same period last year.

Robinhood has beaten EPS estimates in eight of the past 10 quarters but missed expectations in the first quarter.

Robinhood Analyst Ratings and Price TargetsHere are some of the latest analyst ratings on Robinhood stock and their price targets:

KeyBanc: Maintained Overweight rating, raised price target from $100 to $125 Needham: Maintained Buy rating, raised price target from $97 to $123 Bernstein: Maintained Outperform rating, raised price target from $130 to $160 Goldman Sachs: Maintained Buy rating, raised price target from $121 to $137 Key Items to WatchAfter missing first-quarter estimates for both revenue and earnings per share, Robinhood will look to rebound by highlighting new products and growth initiatives when it reports results.

The company recently launched Robinhood Chain, a Layer 2 blockchain designed to expand its cryptocurrency ecosystem, while meme coin activity has gained traction among crypto traders.

Robinhood has also become a key partner in Trump Accounts, a White House-backed child investment account initiative, though the impact on revenue may come later as adoption ramps.

Prediction markets remain another growth area for the company. With major sporting events, including the World Cup, boosting interest in event contracts, investors will be watching for continued momentum in this segment.

Transaction-based revenue rose 7% year-over-year in the first quarter, though cryptocurrency revenue declined. Investors will be looking for stronger growth in overall transaction revenue and signs of a crypto rebound.

Management previously said April was on track to become the company’s strongest month of the year for equity and options trading.

The key question is how much of the growth from Trump Accounts and Robinhood Chain will be reflected in second-quarter results versus future quarters. With that in mind, management’s outlook and guidance could prove just as important as the earnings report itself.

Price ActionRobinhood stock is down 3.7% to $92.07 on Tuesday versus a 52-week trading range of $63.52 to $153.86. Robinhood shares are down 20.1% year-to-date in 2026.

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GREENSBORO, N.C., July 28, 2026 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2027 first quarter ended June 27, 2026.

On a GAAP basis, revenue for Qorvo’s fiscal 2027 first quarter was $784.8 million, gross margin was 51.1%, operating income was $96.8 million, and diluted earnings per share was $0.96. On a non-GAAP basis, gross margin was 52.8%, operating income was $177.6 million, and diluted earnings per share was $1.64.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, "The Qorvo team delivered strong June quarterly financial results, supported by double-digit year-over-year revenue growth in D&A, infrastructure, and power, coupled with our successful pivot in ACG to higher value placements. For full-year fiscal 2027, we continue to expect non-GAAP gross margin above 50% and now expect non-GAAP diluted earnings per share above $7.00."

Financial Commentary

Grant Brown, chief financial officer of Qorvo, said, "Qorvo is improving business mix within and across operating segments, reducing capital intensity, and structurally enhancing profitability. Compared to the prior-year June quarter, non-GAAP gross margin expanded 880 basis points to 52.8% and non-GAAP EPS increased 78% to $1.64. We expect continued strong financial performance throughout fiscal 2027."

Given Qorvo's pending transaction with Skyworks, Qorvo has discontinued conducting conference calls and providing forward-looking guidance. Qorvo's fiscal 2027 is a 53-week year, and its fiscal second quarter, ending Saturday, October 3, 2026, will include 14 weeks.

See "Forward-looking non-GAAP financial measures" below. Qorvo's actual results may differ from these expectations and projections, and such differences may be material.

Selected Financial Information

The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

SELECTED GAAP RESULTS(In millions, except for percentages and EPS)(Unaudited)             Q1 Fiscal 2027 Q4 Fiscal 2026 Q1 Fiscal 2026 Sequential Change Year-over-Year ChangeRevenue$784.8  $808.3  $818.8  $(23.5) $(34.0)Gross profit$401.0  $395.0  $331.8  $6.0  $69.2 Gross margin 51.1%  48.9%  40.5%  2.2 ppt   10.6 ppt Operating expenses$304.2  $363.5  $301.7  $(59.3) $2.5 Operating income$96.8  $31.5  $30.1  $65.3  $66.7 Net income$85.8  $29.7  $25.6  $56.1  $60.2 Weighted-average diluted shares 89.4   92.6   93.8   (3.2)  (4.4)Diluted EPS$0.96  $0.32  $0.27  $0.64  $0.69                         SELECTED NON-GAAP RESULTS(1)(In millions, except for percentages and EPS)(Unaudited)             Q1 Fiscal 2027 Q4 Fiscal 2026 Q1 Fiscal 2026 Sequential Change Year-over-Year ChangeRevenue$784.8  $808.3  $818.8  $(23.5) $(34.0)Gross profit$414.3  $425.2  $360.0  $(10.9) $54.3 Gross margin 52.8%  52.6%  44.0%  0.2 ppt   8.8 ppt Operating expenses$236.6  $235.0  $251.8  $1.6  $(15.2)Operating income$177.6  $190.2  $108.2  $(12.6) $69.4 Net income$146.6  $156.8  $86.5  $(10.2) $60.1 Weighted-average diluted shares 89.4   92.6   93.8   (3.2)  (4.4)Diluted EPS$1.64  $1.69  $0.92  $(0.05) $0.72 (1) Adjusted for stock-based compensation expense; amortization of acquired intangible assets; restructuring-related charges and adjustments; merger-related costs; goodwill and intangible asset impairments; settlements, gains, losses and other charges; investment gains and losses; and an adjustment of income taxes.  SELECTED GAAP RESULTS BY OPERATING SEGMENT(In millions, except percentages)(Unaudited) Q1 Fiscal 2027 Q4 Fiscal 2026 Q1 Fiscal 2026 Sequential Change Year-over-Year ChangeRevenue         HPA$206.3  $202.7  $137.4  1.8% 50.1%CSG 101.9   93.3   110.2  9.2% (7.5)%ACG 476.6   512.3   571.2  (7.0)% (16.6)%Total revenue$784.8  $808.3  $818.8  (2.9)% (4.2)%Operating income (loss)          HPA$70.0  $70.3  $21.6  (0.4)% 224.1%CSG 3.0   (6.9)  (7.5) 143.5% 140.0%ACG 108.5   130.5   97.9  (16.9)% 10.8%Unallocated amounts(1) (84.7)  (162.4)  (81.9) 47.8% (3.4)%Total operating income$96.8  $31.5  $30.1  207.3% 221.6%Operating income (loss) as a % of revenue         HPA 33.9%  34.7%  15.7% (0.8) ppt  18.2 ppt CSG 2.9   (7.4)  (6.8) 10.3 ppt  9.7 ppt ACG 22.8   25.5   17.1  (2.7) ppt  5.7 ppt Total operating income as a % of revenue 12.3%  3.9%  3.7% 8.4 ppt  8.6 ppt (1) Includes stock-based compensation expense; amortization of acquired intangible assets; restructuring-related charges and adjustments; merger-related costs; goodwill and intangible asset impairments; settlements, gains, losses and other charges; and start-up costs.  Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

In managing Qorvo's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo's underlying performance.

We believe that these non-GAAP financial measures offer an additional view of Qorvo's operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo's results of operations and the factors and trends affecting Qorvo's business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo's operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of acquired intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other charges or income. We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

We view amortization of acquired acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo's ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo's gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo's ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of acquired intangible assets, acquisition and integration-related costs, merger-related costs, goodwill and intangible asset impairments, restructuring-related charges and certain settlements, gains, losses and other charges. We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of acquired intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, merger-related costs, goodwill and intangible asset impairments, restructuring-related charges and certain settlements, gains, losses and other charges do not constitute part of Qorvo's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of acquired intangible assets, acquisition and integration-related costs, merger-related costs, goodwill and intangible asset impairments, restructuring-related charges, certain settlements, gains, losses and other charges, investment and debt-related gains and losses, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo's ongoing operations (including goodwill and intangible asset impairments, investment and debt-related gains and losses, acquisition-related costs, merger-related costs, restructuring-related costs and certain settlements, gains, losses and other charges) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes, among other items, changes in working capital and the effect of non-cash charges).

Non-GAAP ROIC. ROIC is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations' use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments, minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo's indebtedness by reflecting cash and investments that could be used to repay debt.

Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking gross margin and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, merger-related costs, restructuring-related charges, goodwill and intangible asset impairments, certain settlements, gains, losses and other charges, investment and debt-related gains or losses and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

About Qorvo

Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "forecast," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers' forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to effectively execute restructuring initiatives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; open source software risks, including risks related to licensing and security; compliance with evolving data privacy and cybersecurity laws and regulations; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; negative impacts from activist stockholders; volatility in the price of our common stock; risks and uncertainties relating to the Mergers, including the occurrence of any event, change or other circumstance that could give rise to the right of us or Skyworks to terminate the Merger Agreement; the outcome of any legal proceedings that may be instituted against us or Skyworks in connection with the Mergers; the possibility that the Mergers do not close when expected or at all because of required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that seeking or obtaining such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Mergers); that efforts to complete the Mergers may affect our business relationships with our existing and potential customers, suppliers, service providers and other business partners; that the expected synergies from the Mergers may not be fully realized or may take longer to realize than anticipated; any failure to promptly and effectively integrate the businesses of the Company and Skyworks; and that the Mergers may divert management’s attention and time from ongoing business operations and opportunities. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 28, 2026, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

Financial Tables to Follow

QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
   Three Months Ended June 27, 2026 June 28, 2025Revenue$784,795  $818,778 Cost of goods sold 383,827   486,976 Gross profit 400,968   331,802     Operating expenses:   Research and development 172,427   179,244 Marketing and selling 48,792   56,891 General and administrative 41,337   50,998 Other operating expense 41,642   14,583 Total operating expenses 304,198   301,716 Operating income 96,770   30,086     Interest expense (15,852)  (18,787)Other income, net 19,608   20,386 Income before income taxes 100,526   31,685     Income tax expense (14,724)  (6,091)Net income$85,802  $25,594     Net income per share:   Basic$0.97  $0.28 Diluted$0.96  $0.27     Weighted-average shares of common stock outstanding:   Basic 88,035   92,915 Diluted 89,360   93,770          QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)  Three Months Ended June 27, 2026 March 28, 2026 June 28, 2025      GAAP operating income$96,770  $31,514  $30,086 Stock-based compensation expense 34,411   26,321   42,475 Amortization of acquired intangible assets 8,777   20,394   21,521 Restructuring-related charges 11,521   22,426   7,879 Goodwill and intangible asset impairment —   82,369   — Merger-related costs 14,885   8,097   465 Settlements, gains, losses and other charges 11,276   (898)  5,756 Non-GAAP operating income$177,640  $190,223  $108,182       GAAP net income$85,802  $29,730  $25,594 Stock-based compensation expense 34,411   26,321   42,475 Amortization of acquired intangible assets 8,777   20,394   21,521 Restructuring-related charges 11,521   22,426   7,879 Goodwill and intangible asset impairment —   82,369   — Merger-related costs 14,885   8,097   465 Settlements, gains, losses and other charges 11,276   (898)  5,756 Investment gains and losses (8,891)  4,053   (8,052)Adjustment of income taxes (11,151)  (35,660)  (9,164)Non-GAAP net income$146,630  $156,832  $86,474       GAAP weighted-average outstanding diluted shares 89,360   92,628   93,770 Dilutive stock-based awards —   —   — Non-GAAP weighted-average outstanding diluted shares 89,360   92,628   93,770       Non-GAAP net income per share, diluted$1.64  $1.69  $0.92              QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)   Three Months Ended(in thousands, except percentages)June 27, 2026 March 28, 2026 June 28, 2025GAAP gross profit/margin$400,968 51.1% $395,021 48.9% $331,802 40.5%Stock-based compensation expense 5,923 0.8   5,252 0.6   5,641 0.7 Amortization of acquired intangible assets 8,046 1.0   18,448 2.3   19,165 2.3 Restructuring-related (adjustments) charges (153)—   7,084 0.9   3,725 0.5 Other income (516)(0.1)  (621)(0.1)  (339)— Non-GAAP gross profit/margin$414,268 52.8% $425,184 52.6% $359,994 44.0%                    Three Months EndedNon-GAAP Operating IncomeJune 27, 2026(as a percentage of revenue)   GAAP operating income12.3%Stock-based compensation expense4.4 Amortization of acquired intangible assets1.1 Restructuring-related charges1.5 Merger-related costs1.9 Settlements, gains, losses and other charges1.4 Non-GAAP operating income22.6%     Three Months EndedFree Cash Flow(1)June 27, 2026(in thousands)   Net cash provided by operating activities$139,493 Purchases of property and equipment (24,144)Free cash flow$115,349 (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.  QORVO, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
    Three Months Ended
 June 27, 2026 March 28, 2026 June 28, 2025
GAAP research and development expense$172,427  $170,388  $179,244 Less:      Stock-based compensation expense 13,592   12,496   14,181 Amortization of acquired intangible assets —   402   — Other charges 2   2   2 Non-GAAP research and development expense$158,833  $157,488  $165,061         Three Months Ended
 June 27, 2026 March 28, 2026 June 28, 2025
GAAP marketing and selling expense$48,792  $49,526  $56,891 Less:      Stock-based compensation expense 3,579   3,327   4,679 Amortization of acquired intangible assets 731   1,543   2,356 Non-GAAP marketing and selling expense$44,482  $44,656  $49,856         Three Months Ended
 June 27, 2026 March 28, 2026 June 28, 2025
GAAP general and administrative expense$41,337  $34,504  $50,998 Less:      Stock-based compensation expense 11,891   5,379   17,908 Non-GAAP general and administrative expense$29,446  $29,125  $33,090         Three Months Ended
 June 27, 2026 March 28, 2026 June 28, 2025
GAAP other operating expense (including goodwill and intangible asset impairment)$41,642  $109,089  $14,583 Less:      Stock-based compensation (adjustment) expense (574)  (132)  66 Restructuring-related charges 11,674   15,342   4,154 Goodwill and intangible asset impairment —   82,369   — Merger-related costs 14,885   8,097   465 Settlements, gains, losses and other charges 11,790   (279)  6,093 Non-GAAP other operating expense$3,867  $3,692  $3,805         Three Months Ended
 June 27, 2026 March 28, 2026 June 28, 2025
GAAP total operating expense$304,198  $363,507  $301,716 Less:      Stock-based compensation expense 28,488   21,070   36,834 Amortization of acquired intangible assets 731   1,945   2,356 Restructuring-related charges 11,674   15,342   4,154 Goodwill and intangible asset impairment —   82,369   — Merger-related costs 14,885   8,097   465 Settlements, gains, losses and other charges 11,792   (277)  6,095 Non-GAAP total operating expense$236,628  $234,961  $251,812              QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
       June 27, 2026
 March 28, 2026
ASSETS     Current assets:     Cash and cash equivalents$1,328,943  $1,219,015 Accounts receivable, net 379,545   382,509 Inventories 592,492   553,718 Prepaid expenses 38,857   36,724 Other receivables 16,384   16,172 Other current assets 80,501   98,176 Total current assets 2,436,722   2,306,314 Property and equipment, net 680,308   710,392 Goodwill 2,353,226   2,353,226 Intangible assets, net 106,286   121,506 Long-term investments 14,759   16,295 Other non-current assets 348,155   317,857 Total assets$5,939,456  $5,825,590 LIABILITIES AND STOCKHOLDERS’ EQUITY     Current liabilities:     Accounts payable$253,233  $242,870 Accrued liabilities 213,593   248,160 Other current liabilities 220,861   221,727 Total current liabilities 687,687   712,757 Long-term debt 1,549,138   1,549,154 Other long-term liabilities 230,706   219,380 Total liabilities 2,467,531   2,481,291 Commitments and contingent liabilities     Stockholders’ equity:     Preferred stock, $0.0001 par value; 5,000 shares authorized; no shares issued and outstanding —   — Common stock and additional paid-in capital, $0.0001 par value; 405,000 shares authorized; 88,218 and 87,741 shares issued and outstanding at June 27, 2026 and March 28, 2026, respectively 3,344,678   3,301,450 Accumulated other comprehensive income 2,657   4,061 Retained earnings 124,590   38,788 Total stockholders' equity 3,471,925   3,344,299 Total liabilities and stockholders’ equity$5,939,456  $5,825,590          QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)   Three Months Ended June 27, 2026 June 28, 2025Cash flows from operating activities:   Net income$85,802  $25,594 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation 34,912   39,466 Amortization of intangible assets 15,225   27,994 Deferred income taxes (8,758)  (3,756)Stock-based compensation expense 34,411   42,475 Other, net 2,666   (1,804)Changes in operating assets and liabilities:   Accounts receivable, net 2,941   58,205 Inventories (39,000)  4,725 Prepaid expenses and other assets 15,538   2,389 Accounts payable and accrued liabilities (13,007)  (2,881)Income taxes payable and receivable 4,672   (14,193)Other liabilities 4,091   4,731 Net cash provided by operating activities 139,493   182,945 Cash flows from investing activities:   Purchase of property and equipment (24,144)  (37,543)Other investing activities 1,298   4,212 Net cash used in investing activities (22,846)  (33,331)Cash flows from financing activities:   Repurchase of common stock, including transaction costs —   (49,906)Proceeds from the issuance of common stock 8,731   9,833 Tax withholding paid on behalf of employees for restricted stock units (10,272)  (7,290)Net (payments) proceeds from purchase and sale of inventories subject to repurchase (139)  45,599 Other financing activities (4,787)  (5,171)Net cash used in financing activities (6,467)  (6,935)Effect of exchange rate changes on cash and cash equivalents (252)  1,623 Net increase in cash and cash equivalents 109,928   144,302 Cash and cash equivalents at the beginning of the period 1,219,015   1,021,176 Cash and cash equivalents at the end of the period$1,328,943  $1,165,478      At Qorvo®
Doug DeLieto
VP, Investor Relations
1.336.678.7968

Live Coverage Updates appear automatically as they are published.

Live Updates Pinned 1 hour ago

Live

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Enphase’s earnings.

Simply stay on this page, and new updates will appear below automatically. We expect Enphase to release earnings shortly after 4:05 p.m. ET.

8 minutes ago

Live

Enphase Energy (NASDAQ:ENPH) reported a 60.0% GAAP gross margin in Q2, but that headline figure received a major boost from tariff refunds.

The company recognized $45.4 million of tariff refunds in gross profit, adding 15.6 percentage points to GAAP gross margin. Excluding one-time items, non-GAAP gross margin reached 46.8%, up from 43.9% in Q1 but below 48.6% one year ago.

The underlying improvement is still encouraging. Reciprocal tariffs reduced Q2 gross margin by approximately two percentage points, less than half the 4.3-point impact recorded in Q1.

12 minutes ago

Live

Enphase is moving its IQ Solid-State Transformer beyond the conceptual stage, with several AI data-center opportunities progressing to formal RFI and RFP processes.

Management said the potential pipeline represents multiple gigawatts of demand. Enphase also completed a 15-module series stack operating at 4.16 kilovolts and remains on track to demonstrate a full IQ SST system later this year.

The project could expand Enphase beyond residential solar into the much larger AI infrastructure market. The next major validation point will be converting technical engagement with customers into commercial orders.

44 minutes ago

Live

Enphase Energy just reported earnings, with shares initially up 4% following the report. Here are the key numbers:

Revenue: $291.9 million vs. $289.9 million expected Adjusted EPS: $0.46 vs. $0.46 expected GAAP Gross Margin: 60.0% Free Cash Flow: $25.9 million Q3 Guidance:

Revenue: $290 million to $320 million vs. $304.3 million expected Quick Read:

Enphase delivered a modest revenue beat and matched EPS expectations, while its Q3 revenue midpoint landed slightly above consensus.

Safe-harbor revenue more than doubled sequentially to $84.3 million, helping offset continued uncertainty surrounding the residential solar recovery.

1 hour ago

Live

Why Q3 Guidance Will Overshadow the Q2 Earnings Report Tonight’s headline numbers matter less than what management says about Q3. Enphase Energy (NASDAQ:ENPH | ENPH Price Prediction) already flagged that Q1 and Q2 sell-through was tracking 10% to 15% below prior expectations, so investors want a Q3 revenue floor after the Section 25D expiration.

Bullish Scenario: Q3 revenue guide above $300 million, safe harbor sustained near the $40-$50 million CEO estimate, batteries above 150 MWh, and European battery activations building on ~75% Netherlands growth.

Bearish Scenario: Guide below $270 million, gross margin under 42%, or cautious commentary on U.S. channel inventory. With shares at $36.33 and a P/E of 36, tone on Propel scaling toward 500 originations weekly is the swing factor.

1 hour ago

Live

Enphase Energy (NASDAQ:ENPH) heads into tonight’s Q2 report with split analyst sentiment. The consensus 12-month price target sits at $48.93, with 3 strong buy, 8 buy, 17 hold, 1 sell, and 2 strong sell ratings. Shares last traded near $36.47, well below the 52-week high of $73.74 and above the low of $25.78.

Recent target activity is mixed. Citigroup lifted its target to $43 from $31 on July 23. Argus trimmed to $38 on July 24. GLJ Research raised to $24.47 from $21.70 while keeping a Sell, citing margin pressure. With shares down 20.11% over the past month, options skew stays cautious.

Firm Analyst Rating Price Target Date GLJ Research Gordon Johnson Sell $24.47 Jul 28, 2026 Argus Research Team Hold $38.00 Jul 24, 2026 Citigroup Vikram Bagri Buy $43.00 Jul 23, 2026 1 hour ago

Live

With shares trading today at $36.45, here are some questions analysts are likely to have to Enphase Energy on tonight’s call:

Top 5 Analyst Questions How is post-Section 25D U.S. sell-through trending after the pull-forward? Will Q3 guidance beat Zacks’ $290.91M revenue consensus? Are reciprocal tariffs still a ~3 percentage point margin drag? What is the Propel prepaid-lease origination run rate? Timeline for IQ SST monetization in AI data-center power? Key Topics to Address European recovery beyond Q4’s -29% QoQ print Safe harbor pipeline execution IQ9 and Kestrel ASIC roadmap Buzzwords to Listen For “Sell-through,” “channel inventory,” “45X,” “domestic content,” “GaN-based,” “VPP attach rates.” Red Flags Q3 revenue guide below $290.91M Gross margin compression beyond tariff impact Rising channel inventory or European softness Silence on Propel traction 1 hour ago

Live

With Enphase Energy (NASDAQ:ENPH) hours from its Q2 earnings report, here is the balanced setup beyond the guidance and price targets already covered.

Bull Case Momentum is real: three consecutive beats through Q1 2026, including a $0.47 vs. $0.45 result, against a low $0.16 EPS estimate tonight. U.S. sell-through jumped 21% QoQ in Q4 2025, potentially pulling into Q2. Composite sentiment reads 63.7, bullish, with insiders net buying. Bear Case Shares are down 20.11% over the past month, signaling positioning risk. Beats rarely stick: the average one-week reaction after a beat is -3.9%. European revenue fell 29% QoQ in Q4 2025, and tariffs remain a ~5-point margin drag. Analyst consensus skews cautious at 11 buys, 17 holds, 3 sells. 2 hours ago

Live

Enphase Energy reports Q2 earnings after today’s close with guidance calling for $280 million to $310 million in revenue, including approximately $85 million of safe-harbor sales.

The anticipated tariff drag narrows to roughly three percentage points from 4.3 points in Q1, providing a modest tailwind. More important will be signs that Propel prepaid-lease originations are stabilizing U.S. demand, European “green shoots” are strengthening, and the new IQ SST product can establish Enphase in AI data-center power.

Enphase is attempting to evolve beyond subsidy-dependent residential solar into a broader energy-electronics platform spanning batteries, EV charging, and data centers and currently trades at a share price of $36.35. A clean beat with stronger Propel disclosure could support Citigroup’s $43 price target, while a weak Q3 outlook would strengthen GLJ Research’s bear case and $24.47 target.

Enphase Energy (NASDAQ:ENPH) reports Q2 2026 results tonight, July 28, at 4:05 PM ET. Shares trade near $36.60, down 20.11% in a month, setting the stage for a tense earnings report for the residential solar company.

Tariff Relief Meets Demand Reset Q1 2026 revenue landed at $282.9 million with non-GAAP EPS of $0.47, as U.S. residential revenue fell 23% sequentially after the Section 25D pull-forward exhausted itself. Non-GAAP gross margin compressed to 43.9%, weighed by a 6.7-point PTC monetization hit and 4.3 points of reciprocal tariffs.

Management cut both U.S. battery list prices 12% to 14% and European battery prices about 10% to defend market share. Europe already responded: April battery activations jumped about 75% in the Netherlands and about 27% in Germany versus the Q1 monthly pace.

Consensus Estimates Metric Q2 2026 Estimate YoY Change Guidance Midpoint Revenue $290.91M vs. $363.15M prior year $295M EPS (Non-GAAP) $0.46 vs. $0.69 prior year n/a Non-GAAP Gross Margin 44%-47% vs. 48.6% 45.5% Revenue lands roughly 20% below the prior-year comp, a reset the sell-side has already digested. The margin band actually widens quarter-over-quarter thanks to lower tariff rates, but PTC accounting and safe harbor mix keep the reported number lumpy.

What I’m Watching: Propel, SST, and European Follow-Through Tonight I’ll be watching four specific items when CEO Badri Kothandaraman takes the call. First, Propel origination velocity. Management wants to move from 200 net originations per week to 500 by the end of Q4, with an 84% battery attach rate already validating unit economics.

Second, the IQ Solid-State Transformer commentary. Enphase now sizes the AI data-center power opportunity at 11 gigawatts by 2031, with customer pilots in 2027 and volume in 2028. Any named partner or funded engagement would rerate the growth narrative.

Third, European battery run-rate. April was strong, but Q2 needs to convert those activations into revenue that offsets ongoing U.S. TPO financing challenges, which Kothandaraman flagged as the primary headwind alongside weather.

Fourth, channel inventory. Enphase said it would under-ship by about $25 million in Q2 to normalize U.S. stock. Investors will focus on whether that correction stays contained or bleeds into Q3.

Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q4 2025 +21.43% -8.52% -6.66% -20.92% Q3 2025 +37.22% -3.24% +3.4% -8.22% Q2 2025 +9.00% -2.65% -8.44% +4.66% Q1 2025 -5.96% +1.51% -1.07% -12.05% On average, shares moved -3.19% in the week after earnings over the past year.

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Are Dividend-Paying Office REITs Finally Staging A Comeback?Kilroy Realty NYSE: KRC reported second-quarter funds from operations of $0.92 per diluted share and said leasing conditions continued to improve across its West Coast office and life science markets, supported by stronger tenant demand, reduced high-quality space availability and expanding renewal discussions.

CEO Angela Aman said the company executed about 376,000 square feet of new and renewal leases during the quarter, bringing first-half leasing volume to roughly 944,000 square feet, more than 40% above the comparable period in 2025. For comparable leases signed in the quarter, GAAP rental rates increased 21% and cash rents increased 6.1%.

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Excluding space that had been vacant for more than 12 months, GAAP and cash re-leasing spreads were 27.3% and 15.6%, respectively. CFO Jeffrey Kuehling said it was the first quarter in nearly two years in which both GAAP and cash re-leasing spreads were positive.

Signed Pipeline Supports Future NOI Growth At June 30, Kilroy had more than 1 million square feet of signed but not yet commenced leases, representing more than $78 million of annualized base rent. The annualized base rent per square foot in that pool exceeded $75, about 30% above the company’s current portfolio-wide level, according to Aman.

Further, 86% of signed-but-not-commenced leases use triple-net structures, compared with 53% of the existing portfolio. Aman said the lease mix should provide a disproportionately positive contribution to net operating income as tenants commence occupancy.

Portfolio occupancy, including Kilroy Oyster Point Phase 2, was 77% at quarter-end, down 60 basis points sequentially. Kuehling said occupancy was affected by two previously disclosed large move-outs, which reduced occupancy by about 140 basis points. New lease commencements partly offset that impact.

The company also completed about 75,000 square feet of renewals during the quarter on space it had expected to vacate. Retention was 27.9% for the quarter and 30% year to date, including subtenants. Kuehling said the remaining 2026 expiration schedule is more granular, with no expirations above 50,000 square feet.

San Francisco Demand Broadens Aman said San Francisco, Kilroy’s largest market, recorded its fourth consecutive quarter of positive net absorption. The market’s flight-to-quality trend has reduced competitive sublease space and direct vacancy in trophy and Class A properties, while average effective rents have risen about 15% year over year.

Active tenant demand in San Francisco has surpassed 10 million square feet, a level not seen since 2019, according to Aman. Artificial intelligence-related companies account for about one-third of that demand pipeline, though the company said interest is broad-based across industries.

Chief Leasing Officer Rob Paratte said 7.5 million square feet had been leased year to date in San Francisco, while availability had declined by 4.5 million square feet. He said the decline in large, available blocks is prompting tenants to make decisions more quickly, including tenants with lease expirations still several years away.

Kilroy said it has also seen improved activity in Seattle’s South Lake Union and Denny Regrade areas, suburban San Diego, Beverly Hills, Culver City and the South Bay in Los Angeles, as well as Austin. In Los Angeles, the company signed a 51,000-square-foot lease with Universal Music Group at Santa Monica Media Center, bringing that project to 100% leased.

Life Science Activity Picks Up at Oyster Point In life sciences, Aman cited improving sector conditions, including a more than 70% year-over-year increase in the XBI, open biotech IPO and follow-on equity markets, and active merger, acquisition and licensing activity.

At Kilroy Oyster Point Phase 2, the company executed a previously announced 38,000-square-foot lease with Olema Pharmaceuticals. Paratte said touring activity in South San Francisco and the Peninsula rose from 317,000 square feet in the first quarter to more than 800,000 square feet in the second quarter.

He said Kilroy has active interest in all unleased space in its multitenant Oyster Point building. The company’s final available spec suite has multiple interested parties, while two new floors of spec labs are expected to become available in December and January. Paratte also pointed to growing demand from robotics companies, including some requirements above 100,000 square feet.

Capital Recycling and Balance Sheet Actions EVP and CIO Eliott Trencher said Kilroy sold $348 million of assets year to date, including the previously discussed $202 million Los Angeles residential sale. The company has $165 million of land sales under contract, with roughly half expected to close late in 2026 or early in 2027.

Kilroy is evaluating additional land sales and acquisition opportunities, focusing on office and life science assets in its five existing markets. Trencher said the company would remain selective, generally seeking opportunities where leasing, capital investment or future lease-roll expertise can create value.

Regarding the Flower Mart site in San Francisco, Kilroy is working with the city on a revised plan that is expected to allow more flexibility in phasing and a broader mix of uses, including residential. Aman said the company expects to complete that process later in the fourth quarter. Trencher said current rents do not yet support either office or residential development economics, and Kilroy expects to stop expense capitalization at year-end 2026.

During the quarter, Kilroy increased its revolving credit facility to $1.25 billion and extended its maturity to July 2030. It also upsized its term loan to $250 million and extended its maturity to July 2031. In July, the company repaid $200 million of private placement notes with cash on hand ahead of their October maturity.

Kilroy affirmed its full-year guidance for FFO of $3.49 to $3.63 per diluted share and same-property NOI growth of 25 to 125 basis points. Kuehling said the third quarter will face a difficult comparison with the prior year, when the company recognized $4 million in restoration fees and net real estate tax refund benefits.

About Kilroy Realty (NYSE:KRC)Kilroy Realty Corporation NYSE: KRC is a publicly traded real estate investment trust focused on the development, acquisition and management of high‐quality office and mixed‐use properties along the U.S. West Coast. The company's portfolio encompasses major urban markets including Los Angeles, San Diego, the San Francisco Bay Area and Seattle. Kilroy Realty targets properties in transit‐oriented submarkets, blending workplace space with retail, residential and hospitality amenities to create vibrant, walkable neighborhoods.

Founded in the mid‐20th century by members of the Kilroy family, the company evolved from a regional landlord into one of the leading West Coast office landlords.

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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Community Financial System, Inc. (CBU) Q2 2026 Earnings Call July 28, 2026 11:00 AM EDT

Company Participants

Dimitar Karaivanov - President, CEO & Director
Marya Wlos - Executive VP, Treasurer & CFO

Conference Call Participants

Stephen Moss - Raymond James & Associates, Inc., Research Division
Grant Zirlin
Matthew Breese - Stephens Inc., Research Division

Presentation

Operator

Good day, and welcome to the Community Financial Systems, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded, and discussion may contain forward-looking statements within the provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates and projections about the industry, markets and economic environment in which the company operates. These statements involve risks and uncertainties that could cause actual results to differ materially from the results discussed. Refer to the company's SEC filings, including the Risk Factors section for more details.

Discussion may also include reference to certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's earnings release.

I would now like to turn the conference over to Dimitar Karaivanov, President and CEO. Please go ahead.

Dimitar Karaivanov
President, CEO & Director

Thank you, Betsy. Good morning, everyone. Thank you for joining us today. This was another consecutive record quarter, which I would classify as solid with continued expansion in net interest income, strong fee performance in Banking, Employee Benefits and Wealth Management and managed recurring run rate expenses. Both credit and liquidity remain top tier. Insurance revenues were short of expectations, and we also had a few expense items, which we do not consider recurring.

I'm particularly encouraged by the continued client and talent acquisition momentum across all of our markets in banking, the new product

Last Tuesday, Super Micro Computer (SMCI -4.56%), the artificial intelligence (AI) server maker, disclosed that it received more than $60 billion of new orders during its fiscal fourth quarter, which ended June 30. The entire company, as of Friday's close, is valued at about $19.5 billion.

Numbers that lopsided invite a simple conclusion: The market must be asleep. But I don't think it is. The gap between what Super Micro booked and what investors will pay for it is a judgment about how hard it is to turn AI server orders into AI server profits, and about a couple of clouds still hanging over this company.

Let's take a look at what the update actually says.

Image source: Getty Images.

A quarter of records, with an asterisk The July 21 update was preliminary, ahead of full results scheduled for Aug. 11. But three disclosures stand out.

First, the orders. Super Micro said backlog rose to record levels, with total new orders in excess of $60 billion received during the quarter. And order flow accelerated as the period went on. In early June, the company had announced about $39 billion of AI server orders from more than 20 customers. By quarter's end, the total had grown by more than half again.

Second, the revenue. Super Micro expects fiscal fourth-quarter revenue of about $11 billion, near the low end of a guidance range that stretched to $12.5 billion. So in the same three months it booked $60 billion of orders, it billed about $11 billion. The company said the new orders "are expected to be delivered over future quarters."

Third, the profitability surprise. Gross margin is estimated at 15% to 17%, about double the 8.2% to 8.4% management had guided for, thanks to a favorable customer and product mix. That's arguably an encouraging sign for a business that has historically run on thin server margins. Still, one quarter of mix-driven strength doesn't establish a new normal.

Add it up, and Super Micro just booked roughly five times more business than it billed. Even at a delivery pace of $12 billion a quarter, $60 billion of orders represents more than a year of output -- and that's before counting whatever the company books next.

Why the market pays a third of one quarter's orders So why does a tech company sitting on that much demand trade at about $30 per share, less than half its 52-week high, and at under 16 times earnings -- even with revenue up 56% over the trailing 12 months to $33.7 billion?

In the filing itself, Super Micro cautioned that some of the $60 billion in orders "may not constitute firm commitments and may be subject to cancellation or delays." Orders are not backlog, backlog is not revenue, and revenue is not profit. Each conversion can leak.

Then there's the cost of fulfillment. Building AI servers means buying expensive components upfront -- graphics processing units (GPUs), memory, and the rest -- long before customers pay. That's why June's $39 billion order announcement came paired with a proposed $7.0 billion of equity and equity-linked financing to fund component purchases -- dilution as the price of growth. Converting the larger order book will demand still more working capital.

Today's Change

(

-4.56

%) $

-1.36

Current Price

$

28.45

Finally, there's the biggest cloud. Super Micro's board is conducting an independent review of certain transactions connected to alleged export-control issues, with two independent directors leading the work alongside outside counsel and forensic accountants. The company itself notes the outcome could affect its forecasts, these preliminary results, and even prior-period results. A multiple under 16 times earnings for a company growing this fast is the market pricing that uncertainty in, not ignoring the orders.

For investors, the order book is not the investment case. The conversion rate is. If the Aug. 11 report shows the backlog translating into strong fiscal 2027 revenue guidance (with margins holding up and the review contained), then a $19.5 billion market value set against $60 billion of quarterly bookings will start to look strange, and the stock could rerate quickly. If orders slip, margins revert, or the review deepens, the discount will have been the market's way of being right early.

I wouldn't treat five quarters' worth of booked demand as money in the bank until the company shows how much of it actually converts, and at what margin. Until it does, the market's cautious price at least reflects this uncertainty reasonably well.

Live Coverage Updates appear automatically as they are published.

Live Updates Pinned 1 hour ago

Live

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Bloom Energy’s earnings.

Simply stay on this page, and new updates will appear below automatically. We expect Bloom to release earnings shortly after 4:05 p.m. ET.

1 minute ago

Live

CEO KR Sridhar said all major U.S. hyperscalers and more than a dozen neoclouds, AI laboratories, and colocation data-center operators have now validated and approved Bloom’s power solutions for their AI factories.

That is a meaningful escalation of the company’s AI narrative. Bloom is positioning its fuel-cell systems as a proven alternative to traditional combustion technologies at a time when data-center developers need power faster than the electrical grid can provide it.

Q2 offered financial evidence of this claim, with revenue rising 166%, non-GAAP gross margin expanding 604 basis points to 34.3%, and operating cash flow improving by $439.5 million to a positive $226.4 million.

2 minutes ago

Live

Bloom Energy generated a record $1.065 billion in Q2 revenue, marking its first quarter above $1 billion and representing 166% year-over-year growth.

Product revenue drove the growth, climbing 215% to $935.4 million. The growth also came with significant operating leverage, as non-GAAP operating income jumped to $239.6 million from $28.6 million one year earlier.

Adjusted EBITDA reached $253.4 million, more than six times the prior-year result. Bloom is beginning to show that its AI data-center opportunity can produce expanding profitability alongside explosive revenue growth.

3 minutes ago

Live

Bloom Energy raised its full-year 2026 revenue guidance to $3.9 billion to $4.2 billion, up from its previous range of $3.4 billion to $3.8 billion.

The new midpoint of $4.05 billion implies roughly 100% year-over-year growth, supported by accelerating demand for on-site power systems. Management also guided for approximately 34% non-GAAP gross margin, $800 million to $900 million in non-GAAP operating income, and adjusted EPS of $2.55 to $2.85.

This is the clearest reason Bloom shares are up 10% after reporting Q2 earnings. The company materially raised the earnings and revenue trajectory for the rest of 2026.

26 minutes ago

Live

Bloom Energy just reported earnings, with shares initially up 7% following the report. Here are the key numbers:

Revenue: $1.065 billion vs. $827.02 million expected EPS: $0.78 vs. $0.41 expected Quick Read:

Bloom crushed expectations, beating revenue estimates by 29% and EPS estimates by 90%.

Revenue surged 165% year over year, while EPS jumped 680%, reinforcing the company’s AI data-center power growth narrative.

38 minutes ago

Live

Guidance Is Everything: What Would Move BE Tonight Wall Street cares much more about FY26 guidance than tonight’s Q2 results. Bloom Energy (NYSE:BE) management raised the bar in April to $3.40 billion to $3.80 billion in revenue, and $1.85 to $2.25 in non-GAAP EPS, and CEO KR Sridhar has historically guided conservatively.

Bullish Scenario: Revenue guide lifted above $3.8 billion, gross margin tracking beyond 34%, product backlog above $6 billion, and a fresh hyperscaler win outside Oracle.

Bearish Scenario: Guidance simply reaffirmed, margin pressure from tariffs, or softer non-Brookfield product bookings. With shares at $168.60 and analyst consensus target $286.20, the FY26 outlook, not the quarter, decides tonight’s tape.

1 hour ago

Live

Bull Case Management raised FY26 revenue guidance to $3.4 billion to $3.8 billion, with gross margin approaching 34%. Oracle’s Project Jupiter names Bloom sole power provider for a 2.45 gigawatt islanded microgrid. Product backlog reached ~$6.00B, total backlog $20.00B, backed by four straight beats. Bear Case Brookfield JV sales hit $373.30M in Q1, versus $2.80M a year earlier, flagging concentration risk. Shares fell 25.33% over the past month as insiders including Chambers unloaded 55,000 shares @ $297.69. July 31 put open interest of 151,488 dwarfs call OI of 63,430. Reddit sentiment sits at 18, deep in very-bearish territory. A guidance raise likely revives the bull thesis; anything less could deepen the drawdown.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Bloom Energy didn't make the cut. Grab the names FREE today.

1 hour ago

Live

Beyond the headline guidance debate, several wildcards could swing the reaction to tonight’s Bloom Energy (NYSE:BE) report.

Wildcards Not in Consensus Brookfield lumpiness: Q1 included $373.30 million in related-party sales versus $2.80 million a year earlier. A quieter Q2 shipment cadence to the JV could mask underlying demand. Options skew: July 31 put open interest sits at 151,488 versus 63,430 calls, flagging defensive positioning. Tariff and tax-credit exposure: Management cites trade policies including tariffs and Inflation Reduction Act credit availability as risks. Capacity ramp: Doubling factory output to 2GW by year-end introduces execution risk on manufacturing defect and supply constraints. Shares last traded at $158.65, well below the average analyst price target of $286.20.

1 hour ago

Live

With shares trading at $158.65, here are some top questions analysts might ask on tonight’s call.

Top 5 Analyst Questions Can Bloom Energy (NYSE:BE) diversify beyond the $373.3 million Brookfield related-party revenue stream? Will FY26 guidance rise again above $3.4B-$3.8B? Progress on the 2GW capacity expansion by year-end? Response to the July 8 short seller report on supply chain? Path to ~34% non-GAAP gross margin? Buzzwords to Track “Bring-your-own-power,” “800V DC,” “hyperscaler,” “digital power” and new customer names beyond Oracle.

Red Flags Any guidance trim, backlog stagnation below $20 billion, or deeper related-party concentration. Commentary defending the 55,000-share Chambers sale at $297.69 as routine. 2 hours ago

Live

Bloom Energy reports Q2 earnings after today’s close, with shares down 16.03% today and 37.43% in the past month.

The central question is whether Bloom remains on track to deliver the $3.4-$3.8 billion full-year revenue path outlined by management. Investors will also be watching execution on Oracle’s Project Jupiter and whether Bloom can diversify its roughly $20 billion backlog beyond Brookfield-related business.

At 82 times forward earnings and 22 times sales, Bloom is priced as the default on-site power provider for AI data centers. A guidance raise and broader customer mix could revive the bull case. Merely maintaining guidance after this sharp selloff could keep the AI power trade on defense.

Bloom Energy (NYSE:BE) reports Q2 2026 results at 4:05 PM ET today. After a parabolic run and a sharp July pullback, the earnings report lands as the market’s cleanest read on whether AI hyperscaler power demand is converting to shipped megawatts and cash. Bloom Energy is down 16% in today’s intraday trading, which suggests investors might be concerned about tonight’s upcoming results.

Momentum Meets a Sudden Reality Check Shares are still up 116.57% year to date and 447.99% over one year, but the last month has been brutal. The stock trades at $162.82, well below the 50-day moving average of $269.86.

Q1 was a genuine inflection. Bloom posted $751.1 million in revenue, its first quarter of greater than 100% YoY growth as a public company, alongside $143 million of adjusted EBITDA and $2.49B in cash. Management then lifted FY revenue guidance from $3.1B to $3.3B to $3.4B to $3.8B, with a non-GAAP gross margin near 34%.

Consensus Estimates Metric Q2 2026 Estimate FY 2026 Guidance Revenue $827.0M $3.4B to $3.8B EPS (Non-GAAP) $0.4066 $1.85 to $2.25 The Q2 revenue bar sits roughly at the FY guide’s implied quarterly run rate. Bloom has beaten estimates in four consecutive quarters, so a small top-line beat may not be enough to drive the stock higher after earnings. Margin trajectory toward 34% non-GAAP gross margin is what investors are looking for.

What I’m Watching: Backlog Quality and Customer Mix Tonight, I’ll be watching Bloom’s Brookfield concentration. Q1 product revenue included $373.30M of related-party sales to Brookfield JVs, versus $2.80M a year earlier. Any softening in that pipeline reshapes the growth story.

Investors will also focus on the Oracle Project Jupiter cadence. CEO KR Sridhar called it an “up to 2.45 gigawatt power block” that will be 100% Bloom. Timelines, milestone payments, and follow-on hyperscaler wins will define the multi-year revenue curve.

I’ll also be watching capacity commentary. CEO Sridhar said the current footprint “will allow us to deliver five gigawatts of product annually” and that Bloom is “not order constrained and not capacity constrained.” Service margin follow-through matters too, after Q1 service margins hit 18%.

Finally, insider selling has been steady, with executives disposing of shares in the $288 to $300 range across May and June.

Earnings History Quarter EPS Surprise Day-of Move 1-Week Move 30-Day Move Q1 2026 +242.41% +27.21% -0.87% -5.02% Q4 2025 +50.35% +4.71% -2.3% +11.31% Q3 2025 +50.15% +18.03% +5.76% -26.01% Q2 2025 +455.56% -1.79% +0.22% +42.84% On average, shares moved +0.7% seven days after earnings over the past year.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Bloom Energy didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

2026 Second Quarter - Core Operations:

Revenue of $6.0 billion, 6.1% organic growth Non-GAAP Adjusted EBITA of $1.1 billion, 17.8% margin 2026 Second Quarter - Reported:

Revenue of $6.6 billion Diluted earnings per share of $2.08; $2.65 Non-GAAP Adjusted, up 29% Operating Income of $922.5 million; $1.1 billion Non-GAAP Adjusted EBITA, 17.2% margin , /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the quarter ended June 30, 2026.

"Our second quarter results reflect the momentum of the new Omnicom. Revenue in our Core Operations grew 6.1% organically and we had strong margin expansion," said John Wren, Chairman and Chief Executive Officer of Omnicom. "We are built for an era where speed, integration, and scale matter most. Our wins this quarter demonstrate that. Clients are consolidating more work with us because they see the competitive advantage our connected capabilities deliver. Looking ahead, we will strengthen our position as an integrated growth partner by focusing on three key areas: leading in agentic marketing transformation, expanding and deepening our partnerships with existing and new clients, and helping clients win across the new consumer engagement models in sports & entertainment, social & creator, connected commerce, and AI-driven discovery."

Second Quarter 2026 Results - Core Operations

Three Months Ended June 30,

$ in millions, except per share amounts

2026

2025

Omnicom

Combined (OMC + IPG)

2026
Consolidated

Less:
Dispositions &
Held for Sale

Core Operations
(Net of
Dispositions &
Held for Sale)

2025

Combined

Less:
Dispositions &
Held for Sale

Core Operations
(Net of
Dispositions &
Held for Sale)

Revenue

$   6,562.5

$     567.5

$     5,995.0

$   6,552.4

$     960.5

$     5,591.9

Adjusted EBITA

$   1,127.3

$      58.5

$     1,068.8

$   1,007.5

$     120.1

$       887.4

Adj EBITA Margin

17.2 %

10.3 %

17.8 %

15.4 %

12.5 %

15.9 %

See notes on pages 2 and 12.

Revenue from Core Operations
Revenue from Core Operations in the second quarter of 2026 increased $403.1 million, or 7.2%, to $6.0 billion as compared to the second quarter of 2025, primarily due to an increase in organic revenue of $339.0 million, or 6.1%, and an increase due to foreign currency translation of $61.7 million, or 1.1%.

Revenue contribution by discipline as a percentage of revenue from Core Operations of $6.0 billion in the second quarter of 2026 was as follows: $3.1 billion, or 52.5%, for Integrated Media; $942.6 million, or 15.7%, for Advertising; $555.9 million, or 9.3%, for Health; $679.1 million, or 11.3%, for Public Relations; and $669.2 million, or 11.2%, for Experiential & Other.  Revenue from dispositions and assets held for sale was $567.5 million.

Revenue contribution by region as a percentage of revenue from Core Operations of $6.0 billion in the second quarter of 2026 was as follows: $3.5 billion, or 59.0%, for the United States; $826.4 million, or 13.8%, for Euro Markets & Other Europe; $554.8 million, or 9.3%, for the United Kingdom; $537.6 million, or 9.0%, for Asia Pacific; $227.9 million, or 3.8%, for Latin America; $127.6 million, or 2.1%, for the Middle East & Africa; and $180.9 million, or 3.0%, for Other North America.

Adjusted EBITA from Core Operations
Adjusted EBITA from Core Operations in the second quarter of 2026 increased $181.4 million to $1.1 billion as compared to the second quarter of 2025, and the related margin increased to 17.8% from 15.9%, primarily due to cost reduction synergies. For the second quarters of 2026 and 2025, Adjusted EBITA excluded repositioning costs, primarily related to severance actions in connection with the acquisition of The Interpublic Group of Companies, Inc. ("IPG") and integration and acquisition-related costs of $87.1 million ($73.3 million after tax) and $154.8 million ($128.8 million after tax), respectively.

Core Operations
Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG.

Second Quarter 2026 Results - Reported

$ in millions, except per share amounts

Three Months Ended June 30,

Reported
2026

Non-GAAP
Adjustments

Non-GAAP
2026 Adj.

Reported
2025

Non-GAAP
Adjustments

Non-GAAP
2025 Adj.

Revenue

$ 6,562.5

$         —

$ 6,562.5

$ 4,015.6

$         —

$ 4,015.6

Operating Income

922.5

87.1

1,009.6

439.2

154.8

594.0

Operating Income Margin

14.1 %

15.4 %

10.9 %

14.8 %

Net Income1

584.8

160.4

745.2

257.6

143.5

401.1

Net Income per Share - Diluted1

$    2.08

$    2.65

$    1.31

$    2.05

Non-GAAP Measures:1

EBITA

$ 1,040.2

$      87.1

$ 1,127.3

$   459.0

$     154.8

$   613.8

EBITA Margin

15.9 %

17.2 %

11.4 %

15.3 %

1) See notes on page 12.

Revenue
Revenue in the second quarter of 2026 increased $2.5 billion to $6.6 billion as compared to the second quarter of 2025, primarily due to the acquisition of IPG, which closed on November 26, 2025, and constant currency revenue growth. The impact of foreign currency translation increased revenue by $69.0 million, or 1.7%.  Revenue in the second quarter of 2026 includes $567.5 million from dispositions and assets held for sale.

Expenses
Operating expenses increased $2.1 billion to $5.6 billion in the second quarter of 2026 compared to the second quarter of 2025, primarily due to the acquisition of IPG. Included in operating expenses in the second quarter of 2026 are $40.1 million of integration and transaction costs related to the acquisition of IPG, and $47.0 million of repositioning costs. 

Salary and service costs increased $1.8 billion to $4.7 billion, primarily due to the IPG acquisition and constant currency revenue growth. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs, freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $1.1 billion to $3.0 billion, due to the revenue growth and the acquisition of IPG. Third-party service costs increased $604.0 million to $1.5 billion, primarily due to growth in our Integrated Media discipline and the acquisition of IPG. Third-party incidental costs increased $37.9 million to $224.3 million, primarily due to revenue growth and the acquisition of IPG.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $178.5 million to $504.4 million, primarily due to the acquisition of IPG.

SG&A expenses increased $38.6 million to $209.0 million, primarily due to the acquisition of IPG. Included in SG&A expenses in the second quarter of 2026 are $40.1 million of integration and transaction costs related to the acquisition of IPG, compared to $66.0 million in the second quarter of 2025.

Operating Income
Operating income increased $483.3 million to $922.5 million in the second quarter of 2026 compared to the second quarter of 2025, primarily as a result of revenue growth and the IPG acquisition, partially offset by costs primarily related to the integration of IPG.

Interest Expense, net
Net interest expense in the second quarter of 2026 increased $52.6 million to $93.3 million compared to the second quarter of 2025, primarily due to debt assumed as part of the IPG acquisition and the refinancing activities in the first quarter of 2026. Interest expense increased $60.6 million to $123.2 million. Interest income increased $8.0 million to $29.9 million.

Income Taxes
Our effective tax rate for the second quarter of 2026 was 27.1% compared to 30.2% for the second quarter of 2025. The effective tax rates for 2026 and 2025 reflect the impact of the lower tax benefit associated with integration costs, severance, and repositioning charges related to the acquisition of IPG. Excluding these items, our Non-GAAP adjusted effective tax rate for the second quarter of 2026 was 26.0% compared to 26.5% for the second quarter of 2025.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net Income - Omnicom Group Inc. for the second quarter of 2026 increased $327.2 million to $584.8 million compared to the second quarter of 2025. Weighted-average diluted shares outstanding for the second quarter of 2026 increased to 281.0 million from 196.0 million, primarily as a result of shares issued for the IPG acquisition, partially offset by net share repurchases, including shares purchased pursuant to the accelerated stock repurchase agreement. Diluted net income per share of $2.08 increased by $0.77 from $1.31 in the prior year period.

Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2026 increased $0.60, or 29.3%, to $2.65 from $2.05. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarters of 2026 and 2025 excluded $87.1 million and $14.7 million, respectively, of after-tax amortization expense. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2026 also excluded $38.0 million of after-tax integration and transaction costs, and $35.3 million of after-tax severance and repositioning costs. In 2025, Non-GAAP Adjusted Net Income per Share - Diluted excluded $61.6 million of costs related to the acquisition of IPG and $67.2 million of after-tax severance and repositioning costs.  We present Non-GAAP Adjusted Net Income per Share - Diluted to allow for comparability with the prior year period.

EBITA
EBITA increased $581.2 million to $1,040.2 million in the second quarter of 2026 compared to the second quarter of 2025. Adjusted EBITA increased $513.5 million, or 83.7%, to $1,127.3 million in the second quarter of 2026 compared to the second quarter of 2025, and the related margin increased to 17.2% from 15.3%. EBITA and Adjusted EBITA excluded amortization expense of $117.7 million and $19.8 million in the second quarters of 2026 and 2025, respectively. Adjusted EBITA also excluded $40.1 million of costs related to the integration of IPG, and severance and repositioning costs of $47.0 million. Adjusted EBITA in the second quarter of 2025 also excluded $66.0 million of costs related to the acquisition of IPG and $88.8 million of severance and repositioning costs.

Risks and Uncertainties
Global economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions and disruptions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions and disruptions, reductions in client revenue, changes in client creditworthiness, and other developments.

Definitions - Components of Revenue Change
We use certain terms in describing the components of the change in revenue above.

Core Operations: Revenue from Core Operations excludes businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG.

Organic growth: calculated by subtracting the foreign exchange rate impact from total revenue growth, which is equal to the current period revenue from Core Operations minus the prior period revenue from Core Operations.

Foreign exchange rate impact on core operations: calculated by translating the current period's local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue.

Percentage change: Calculated by dividing the individual component amount by the prior period Core Operations revenue base.

Conference Call
Omnicom will host a conference call to review its financial results on July 28, 2026 starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom's investor relations website, investor.omc.com, and a webcast replay will be made available after the call concludes.

About Omnicom
Omnicom (NYSE: OMC) is the world's leading marketing and sales company, built for intelligent growth in the next era. Powered by Omni and its proprietary data and identity, Omnicom's Connected Capabilities unite the company's world‑class agency brands, exceptional talent, and deep domain expertise across media, commerce, consulting, precision marketing, advertising, production, health, public relations, branding, and experiential to address clients' most critical growth priorities. For more information, visit omc.com. 

Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP") and adjustments to the GAAP presentation ("Non-GAAP"), which we believe are meaningful for understanding our performance. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. We define EBITA as earnings before interest, taxes, and amortization, principally of acquired intangible assets and internally developed strategic platform assets, and EBITA margin is defined as EBITA divided by revenue. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc., Adjusted Net Income per share – Omnicom Group Inc. - Diluted, and organic growth as additional operating performance measures. For 2025, we also used Combined Adjusted EBITA, which was calculated using the combined adjusted EBITA of Omnicom and IPG. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain statements in this document contain forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended.  In addition, from time to time, we or our representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of management as well as assumptions made by, and information currently available to management. Forward-looking statements may be accompanied by words such as "aim", "anticipate", "believe", "plan", "could", "should", "would", "estimate", "expect", "forecast", "future", "guidance", "intend", "may", "will", "possible", "potential", "predict", "project" or similar words, phrases, or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of our control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include:

risks relating to the completed merger (the "Merger") between us and IPG, including risks related to the integration of IPG's business, such as, among others: uncertainties associated with retaining key management and other employees; potential disruptions to client, vendor, and business partner relationships; the risk that integration activities may be more time-consuming, complex, or costly than expected; the possibility that anticipated synergies, efficiencies, and other benefits of the Merger may not be realized, or may be realized more slowly than anticipated; and risks associated with managing a larger, more complex combined organization and effectively integrating systems, processes, operations, and cultures; adverse economic conditions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets; international, national, or local economic conditions that could adversely affect us or our clients; reductions in client spending, a slowdown in client payments or a deterioration or disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client marketing and communications services requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes related to competitive factors in the marketing and communications services industries; unanticipated changes to, or an inability to hire and retain, key personnel; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; effective management of the risks, challenges, and efficiencies presented by utilizing artificial intelligence, or AI, technologies and related partnerships in our business, and their use by our competitors; failure to adapt to technological developments; our liquidity, long-term financing needs, credit ratings, and access to capital markets; changes in legislation or governmental regulations affecting us or our clients; losses on media purchases and production costs incurred on behalf of clients; risks associated with assumptions we make in connection with our acquisitions, critical accounting estimates, and legal proceedings; our international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and an evolving regulatory environment in high-growth markets and developing countries; risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives; changes in tax rates, tax laws, regulations or interpretations, or adverse outcomes of tax audits or proceedings; and other business, financial, operational and legal risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those described in Item 1A., "Risk Factors" and Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations", in our Annual Report on Form 10-K, in this document and in other documents filed from time to time with the SEC. Except as required under applicable law, we do not assume any obligation to update these forward-looking statements.

OMNICOM GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenue

$   6,562.5

$   4,015.6

$   12,805.4

$    7,706.0

Operating Expenses:

Salary and service costs

4,713.3

2,932.6

9,352.9

5,678.9

Occupancy and other costs

504.4

325.9

1,031.7

640.5

Severance and repositioning costs1

47.0

88.8

51.1

88.8

Loss on disposition of subsidiaries1

—

—

34.3

—

Cost of services

5,264.7

3,347.3

10,470.0

6,408.2

Selling, general and administrative expenses1

209.0

170.4

433.5

288.3

Depreciation and amortization

166.3

58.7

333.2

117.7

Total Operating Expenses1

5,640.0

3,576.4

11,236.7

6,814.2

Operating Income

922.5

439.2

1,568.7

891.8

Interest Expense

123.2

62.6

242.2

121.7

Interest Income

29.9

21.9

76.9

51.6

Income Before Income Taxes and Income (Loss) From Equity Method Investments

829.2

398.5

1,403.4

821.7

Income Tax Expense1

224.8

120.5

379.4

241.2

Income (Loss) From Equity Method Investments

1.1

(0.2)

0.2

0.7

Net Income1

605.5

277.8

1,024.2

581.2

Net Income Attributed To Noncontrolling Interests

20.7

20.2

34.2

35.9

Net Income - Omnicom Group Inc.1

$     584.8

$     257.6

$      990.0

$      545.3

Net Income Per Share - Omnicom Group Inc.:1

Basic

$      2.09

$      1.32

$        3.43

$        2.78

Diluted

$      2.08

$      1.31

$        3.41

$        2.77

Dividends Declared Per Common Share

$      0.80

$      0.70

$        1.60

$        1.40

Operating income margin

14.1 %

10.9 %

12.3 %

11.6 %

Non-GAAP Measures:4

EBITA2

$   1,040.2

$     459.0

$    1,803.8

$      933.4

EBITA Margin2

15.9 %

11.4 %

14.1 %

12.1 %

EBITA - Adjusted1,2

$   1,127.3

$     613.8

$    1,988.7

$    1,122.0

EBITA Margin - Adjusted1,2

17.2 %

15.3 %

15.5 %

14.6 %

Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3

$      2.65

$      2.05

$        4.53

$        3.74

1)

See Note 3 on page 12.

2)

See Note 4 on page 12 for the definition of EBITA.

3)

Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2026 and 2025 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax loss on disposition of subsidiaries and after-tax integration and acquisition costs related to the acquisition of IPG. We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods.

4)

See Non-GAAP reconciliations starting on page 9.

OMNICOM GROUP INC. AND SUBSIDIARIES

DETAIL OF OPERATING EXPENSES

(Unaudited)

(In millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenue

$      6,562.5

$    4,015.6

$     12,805.4

$       7,706.0

Operating Expenses:

Salary and service costs:

Salary and related costs

2,966.6

1,827.8

6,028.2

3,608.3

Third-party service costs1

1,522.4

918.4

2,888.1

1,715.2

Third-party incidental costs2

224.3

186.4

436.6

355.4

Total salary and service costs

4,713.3

2,932.6

9,352.9

5,678.9

Occupancy and other costs

504.4

325.9

1,031.7

640.5

Severance and repositioning costs3

47.0

88.8

51.1

88.8

Loss on disposition of subsidiaries3

—

—

34.3

—

    Cost of services

5,264.7

3,347.3

10,470.0

6,408.2

Selling, general and administrative expenses3

209.0

170.4

433.5

288.3

Depreciation and amortization

166.3

58.7

333.2

117.7

Total operating expenses3

5,640.0

3,576.4

11,236.7

6,814.2

Operating Income

$         922.5

$      439.2

$      1,568.7

$         891.8

1)

Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.

2)

Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs, which we bill back to the client directly at our cost and which we are required to include in revenue.

3)

See Note 3 on page 12.

OMNICOM GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Income - Omnicom Group Inc.

$      584.8

$      257.6

$     990.0

$     545.3

Net Income Attributed To Noncontrolling Interests

20.7

20.2

34.2

35.9

Net Income

605.5

277.8

1,024.2

581.2

Income (Loss) From Equity Method Investments

1.1

(0.2)

0.2

0.7

Income Tax Expense

224.8

120.5

379.4

241.2

Income Before Income Taxes and Income (Loss) From Equity Method Investments

829.2

398.5

1,403.4

821.7

Interest Expense

123.2

62.6

242.2

121.7

Interest Income

29.9

21.9

76.9

51.6

Operating Income

922.5

439.2

1,568.7

891.8

Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1

117.7

19.8

235.1

41.6

Earnings before interest, taxes and amortization of intangible assets ("EBITA")1

$    1,040.2

$      459.0

$   1,803.8

$     933.4

Depreciation and other

48.6

38.9

98.1

76.1

EBITDA

$    1,088.8

$      497.9

$   1,901.9

$   1,009.5

EBITA1

$    1,040.2

$      459.0

$   1,803.8

$     933.4

Severance and repositioning costs2

47.0

88.8

51.1

88.8

Loss on disposition of subsidiaries2

—

—

34.3

—

Acquisition related costs2

40.1

66.0

99.5

99.8

EBITA - Adjusted1,2

$    1,127.3

$      613.8

$   1,988.7

$   1,122.0

Revenue

$    6,562.5

$    4,015.6

$ 12,805.4

$   7,706.0

Non-GAAP Measures:

EBITA1

$    1,040.2

$      459.0

$   1,803.8

$     933.4

EBITA Margin1

15.9 %

11.4 %

14.1 %

12.1 %

EBITA - Adjusted1,2

$    1,127.3

$      613.8

$   1,988.7

$   1,122.0

EBITA Margin  - Adjusted1,2

17.2 %

15.3 %

15.5 %

14.6 %

1)   See Note 4 on page 12.

2)   See Note 3 on page 12.

The above table reconciles the Non-GAAP financial measures of EBITDA, EBITA, EBITA - Adjusted, EBITA Margin and EBITA Margin-Adjusted to the GAAP financial measure of Net Income-Omnicom Group Inc. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITDA, EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year.

OMNICOM GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - Combined

(Unaudited)

(In millions)

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

OMC

IPG

COMBINED

OMC

IPG

COMBINED

Net Income - Omnicom Group Inc.

$   257.6

$   162.5

$   420.1

$   545.3

$    77.1

$   622.4

Net Income Attributed To Noncontrolling Interests

20.2

1.1

21.3

35.9

1.2

37.1

Net Income

277.8

163.6

441.4

581.2

78.3

659.5

Income (Loss) From Equity Method Investments

(0.2)

0.2

—

0.7

0.1

0.8

Income Tax Expense

120.5

54.6

175.1

241.2

45.4

286.6

Income Before Income Taxes and Income (Loss) From Equity Method Investments

398.5

218.0

616.5

821.7

123.6

945.3

Interest Expense

62.6

50.5

113.1

121.7

100.6

222.3

Interest Income

21.9

24.8

46.7

51.6

22.5

74.1

Other Expense, Net

—

1.4

1.4

—

38.3

38.3

Operating Income

439.2

243.7

682.9

891.8

201.7

1,093.5

Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1

19.8

21.1

40.9

41.6

41.5

83.1

Earnings before interest, taxes and amortization of intangible assets ("EBITA")1

$   459.0

$   264.8

$   723.8

$   933.4

$   243.2

$ 1,176.6

EBITA1

$   459.0

$   264.8

$   723.8

$   933.4

$   243.2

$ 1,176.6

Severance and repositioning costs2

88.8

118.0

206.8

88.8

321.3

410.1

Acquisition related costs2

66.0

10.9

76.9

99.8

15.7

115.5

EBITA - Adjusted1,2

$   613.8

$   393.7

$ 1,007.5

$ 1,122.0

$   580.2

$ 1,702.2

Revenue

$ 4,015.6

$ 2,536.8

$ 6,552.4

$ 7,706.0

$ 4,859.4

$        12,565.4

Non-GAAP Measures:

EBITA Margin  - Adjusted1,2

15.4 %

13.5 %

1)   See Note 4 on page 12.

2)   See Note 3 on page 12.

The above table reconciles the Non-GAAP financial measures of EBITA, EBITA - Adjusted, EBITA Margin and EBITA Margin-Adjusted to the GAAP financial measure of Net Income-Omnicom Group Inc. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year.

OMNICOM GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions)

Three Months Ended June 30,

Reported 
2026

Non-GAAP
Adj. (1)

Non-GAAP
2026 Adj.

Reported 
2025

Non-GAAP
Adj. (1)

Non-GAAP
2025 Adj.

Revenue

$            6,562.5

$        —

$            6,562.5

$ 4,015.6

$        —

$ 4,015.6

Operating Expenses1

5,640.0

(87.1)

5,552.9

3,576.4

(154.8)

3,421.6

Operating Income

922.5

87.1

1,009.6

439.2

154.8

594.0

Operating Income Margin

14.1 %

15.4 %

10.9 %

14.8 %

Six Months Ended June 30,

Reported 
2026

Non-GAAP
Adj. (1)

Non-GAAP
2026 Adj.

Reported 
2025

Non-GAAP
Adj. (1)

Non-GAAP
2025 Adj.

Revenue

$12,805.4

$        —

$             12,805.4

$ 7,706.0

$        —

$ 7,706.0

Operating Expenses1

11,236.7

(184.9)

11,051.8

6,814.2

(188.6)

6,625.6

Operating Income

1,568.7

184.9

1,753.6

891.8

188.6

1,080.4

Operating Income Margin

12.3 %

13.7 %

11.6 %

14.0 %

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net
Income

Net Income
per Share-
Diluted

Net
Income

Net Income
per Share-
Diluted

Net
Income

Net Income
per Share-
Diluted

Net
Income

Net Income
per Share-
Diluted

Net Income - Omnicom Group Inc. - Reported

$ 584.8

$       2.08

$ 257.6

$       1.31

$ 990.0

$       3.41

$ 545.3

$       2.77

Severance and repositioning costs (after-tax)2

35.3

0.13

67.2

0.34

38.3

0.13

67.2

0.34

Loss on disposition of subsidiaries1

—

—

—

—

27.8

0.10

—

—

Acquisition related costs (after-tax)1,2

38.0

0.13

61.6

0.32

84.8

0.29

94.3

0.48

Amortization expense (after-tax)2

87.1

0.31

14.7

0.08

174.0

0.60

30.8

0.15

Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3

$ 745.2

$       2.65

$ 401.1

$       2.05

$         1,314.9

$       4.53

$ 737.6

$       3.74

1)

See Note 3 on page 12.

2)

Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2026 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax loss on disposition of subsidiaries and after-tax integration costs related to the acquisition of IPG.  We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods. Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2025 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets and after-tax integration costs related to the acquisition of IPG.

3)

Weighted-average diluted shares for the three months ended June 30, 2026 and 2025 were 281.0 million and 196.0 million, respectively.  Weighted-average diluted shares for the six months ended June 30, 2026 and 2025 were 290.2 million and 197.1 million, respectively. The above tables reconcile the Non-GAAP financial measures of Non-GAAP Operating Income - Adjusted, Non-GAAP Net Income-Omnicom Group Inc. - Adjusted and Non-GAAP Adjusted Net Income per Share - Diluted to the GAAP financial measures of Operating Income, Net Income - Omnicom Group Inc. and Net Income per Share - Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year.

NOTES:

1)

Net Income and Net Income per Share for Omnicom Group Inc.

2)

See Non-GAAP reconciliations starting on page 9.

3)

For the three and six months ended June 30, 2026, operating expenses included $47.0 million ($35.3 million after-tax) and $51.1 million ($38.3 million after-tax), respectively, related to repositioning costs, primarily related to severance actions in connection with the Merger, respectively, and $34.3 million ($27.8 million after-tax) for the six months ended June 30, 2026 of losses on dispositions of certain businesses in connection with the Merger. In addition, included in selling, general and administrative expenses for the three and six months ended June 30, 2026 are integration and acquisition related costs of $40.1 million ($38.0 million after-tax) and $99.5 million ($84.8 million after-tax), respectively, related to the Merger. The net impact of these items reduced operating income for the three and six months ended June 30, 2026 by $87.1 million ($73.3 million after-tax) and $184.9 million ($150.9 million after-tax), respectively, which reduced diluted net income per share - Omnicom Group Inc. by $0.26 and $0.52, respectively.

For both the three and six months ended June 30, 2025, operating expenses included $88.8 million ($67.2 million after-tax) of repositioning costs recorded in the second quarter of 2025, primarily related to severance actions related to efficiency initiatives. In addition, included in selling, general and administrative expenses for the three and six months ended June 30, 2025, are acquisition related costs of $66.0 million ($61.6 million after-tax) and $99.8 million ($94.3 million after-tax), respectively, related to the Merger. The net impact of these items reduced operating income for the three and six months ended June 30, 2025 by $154.8 million ($128.8 million after-tax) and $188.6 million ($161.5 million after-tax), respectively, which reduced diluted net income per share - Omnicom Group Inc. by $0.66 and $0.82, respectively.

4)

We define EBITA as earnings before interest, taxes and amortization, principally of acquired intangible assets and internally developed strategic platform assets.

5)

Combined (OMC + IPG) represents combined results from Omnicom and IPG as previously reported on a separate company basis during the prior year period. Combined results exclude pro-forma adjustments included in our results for Core Operations. See Note 6 below.

6)

Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG.

SOURCE Omnicom Group Inc.

, /PRNewswire/ -- The Board of Directors of Associated Banc-Corp (NYSE: ASB) ("Associated") today declared a regular quarterly cash dividend of $0.24 per common share, payable on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Series E Perpetual Preferred Stock, payable on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3515625 per depositary share on Associated's 5.625% Series F Perpetual Preferred Stock, payable on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NYSE: ASB) has total assets of $52 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD-LOOKING STATEMENTS

Statements made in this release which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "intend," "target," "outlook," "project," "guidance," "forecast," or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference.

Investor Contact:
Ben McCarville, Senior Vice President, Director of Investor Relations
920-491-7059

Media Contact:
Andrea Kozek, Vice President, Public Relations Senior Manager
920-491-7518

SOURCE Associated Banc-Corp

Key Takeaways Valero Energy is expected to post sharply higher Q2 earnings and revenues from year-ago levels.Elevated crack spreads and resilient refined-product demand may support VLO's refining profits.Higher crude costs and renewable diesel policy exposure may temper Valero Energy's Q2 results. Valero Energy Corporation (VLO - Free Report) is set to report second-quarter 2026 results on July 30, before the market opens.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $9.87 per share, implying an increase of 332.9% from the year-ago reported number. VLO has witnessed two upward and no downward earnings estimate revisions over the past seven days. The Zacks Consensus Estimate for second-quarter revenues is currently pinned at $35.95 billion, suggesting a 20.3% rise from the year-ago actuals.

VLO beat the consensus estimate for earnings in each of the trailing four quarters, delivering an average surprise of 27.99%. This is depicted in the graph below:  

Image Source: Zacks Investment Research

Valero’s Q2 Earnings WhispersOur proven model does not conclusively predict an earnings beat for VLO this time around. 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. That is not the case here, as you will see below.

The company has an Earnings ESP of -0.91% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors to Note for VLOValero Energy is expected to have sustained steady performance in the second quarter, driven by the resilient demand for refined products amid constrained global refining capacity, further amplified by the geopolitical situation in the Middle East.

Moreover, the current business environment looks supportive for refining players, including Valero. The 3-2-1 crack spread, widely recognized as an indicator of refining profitability, had risen significantly since the start of the conflict in the Middle East and remained at elevated levels throughout the second quarter. These factors are likely to have supported refining gains and aided VLO’s profitability in the to-be-reported quarter.

However, the company’s performance may have been tempered by elevated crude prices earlier in the quarter. Per the data from the U.S. Energy Information Administration, the West Texas Intermediate spot crude price averaged $100.32 per barrel in April and $102.13 per barrel in May before declining to $84.81 per barrel in June.

Notably, these figures are significantly higher than those recorded in the corresponding period of 2025. Higher crude prices may have raised input costs for its refining operations, thereby affecting its results. Its Renewable Diesel segment adds another source of earnings volatility, as its performance is highly dependent on government and environmental policy support, alongside demand factors.

These factors are likely to have affected demand and pricing dynamics, potentially hampering the company’s quarterly performance.

VLO’s Price Performance & ValuationVLO’s stock has soared 116.1% over the past year compared with the 59.4% rise of the composite stocks belonging to the industry. PBF Energy and Par Pacific Holdings, two other leading refining players, have gained 154.9% and 139.2%, respectively.

Image Source: Zacks Investment Research

VLO appears relatively overvalued, at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.36X, above the broader industry average of 6.25X, implying that the stock is currently trading at a premium.

Image Source: Zacks Investment Research

Investment Thesis of Valero EnergyValero Energy is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast, providing feedstock sourcing flexibility and access to high-demand growth markets to sell its refined products. Notably, VLO’s refineries have the operational flexibility to process various kinds of feedstock, including heavy sour, medium/light sour and sweet crude, and shift product yields based on market conditions to capture higher margins.  

Valero Energy also boasts a strong financial and liquidity position, with a low debt-to-capitalization ratio of 18%, as of March 31, 2026. Furthermore, its cash and cash equivalents, combined with the liquidity available under its bank facilities, totaled approximately $11 billion at the end of the March quarter. VLO’s healthy financial position also allows it to return excess cash to investors through share buybacks.

However, it should be noted that the refining industry is inherently cyclical and volatile. Margins and crack spreads depend largely on crude oil prices and the overall demand for refined petroleum products, which causes VLO’s earnings to be volatile as well.

Are PBF & PARR Poised to Gain From a Favorable Refining Backdrop?PBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, which have a combined throughput capacity of 1 million barrels per day and can process a wide range of feedstocks.

Par Pacific Holdings (PARR - Free Report)  operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

PBF currently sports a Zacks Rank #1, while PARR carries a Zacks Rank #2. Both refiners are expected to benefit from strong refining fundamentals and elevated crack spreads, which are likely to support their bottom-line profitability.

Final VerdictVLO is expected to benefit from strong refining fundamentals, which are currently supported by the disruptions of energy flows through the Strait of Hormuz. Given the business environment and its healthy financial position, investors should consider buying the VLO stock, carrying a Zacks Rank #2, at present.

A view of the Logitech logo on a building at the EPFL Innovation Park in Ecublens near Lausanne, Switzerland, April 30, 2024. REUTERS/Denis Balibouse Purchase Licensing Rights, opens new tab

ZURICH, July 28 (Reuters) - Logitech International (LOGN.S), opens new tab reported better-than-expected quarterly sales and profit on Tuesday, helped by a big refund of tariffs imposed ​under U.S. President Donald Trump.

The Swiss-U.S. maker of computer mice, keyboards and ‌headsets reported non-GAAP adjusted operating income of $290 million for the three months to end-June, up 44% from a year earlier and well ahead of analysts' forecast of $209 million.

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Results were boosted by ​a $61 million tariff refund related to products made in China, Vietnam, Malaysia, ​Mexico, Thailand and Taiwan and shipped to the United States, Logitech's ⁠largest market.

U.S. companies are seeking to recover up to $166 billion in tariffs after ​courts found duties imposed by Trump last year were collected illegally and must be ​repaid.

Even excluding the refund, Logitech's profit for the first quarter of its fiscal year was 14% higher than a year earlier.

Quarterly sales increased 7% to $1.23 billion, ahead of analysts' expectations of $1.20 billion, ​according to a Visible Alpha consensus.

Logitech said it was seeing strong demand for ​its gaming products, pointing devices and video-conferencing equipment, with momentum expected to continue for the rest of ‌the ⁠year.

However, the company warned that a temporary shutdown at a semiconductor supplier's factory would reduce sales by about $20 million in the second quarter and by up to $200 million in the third quarter.

Logitech did not identify the supplier or disclose the cause of ​the disruption. It ​said the affected ⁠component is used in only some of its products and it is seeking alternative suppliers. The company expects the issue to ​be resolved by early 2027.

It also said it still expects ​a full-year ⁠profit margin towards the top end of its 15% to 18% target range as it shifts sales towards unaffected products and higher-margin categories.

As usual, Logitech did not provide full-year ⁠guidance. ​It forecast second-quarter sales of $1.185 billion to $1.220 billion, ​representing growth of 0% to 3%, including the impact of the supplier disruption.

The company expects non-GAAP operating income ​of $185 million to $210 million in the quarter.

Reporting by John Revill. Editing by Mark Potter

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

Asbury Automotive Group, Inc. (ABG) Q2 2026 Earnings Call July 28, 2026 10:00 AM EDT

Company Participants

Chris Reeves - VP of Finance & Treasurer
Dan Clara - CEO, President & Director
Michael Welch - Senior VP & CFO

Conference Call Participants

Jeffrey Lick - Stephens Inc., Research Division
Rajat Gupta - JPMorgan Chase & Co, Research Division
Alexander Perry - BofA Securities, Research Division
Robert Saltzman - UBS Investment Bank, Research Division
Daniela Haigian - Morgan Stanley, Research Division
John Babcock - Barclays Bank PLC, Research Division
David Whiston - Morningstar Inc., Research Division
Ryan Sigdahl - Craig-Hallum Capital Group LLC, Research Division

Presentation

Operator

Greetings, and welcome to the Asbury Automotive Group Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Chris Reeves, Vice President of Finance and Investor Relations. Thank you, sir. You may begin.

Chris Reeves
VP of Finance & Treasurer

Thanks, operator, and good morning. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's Second Quarter 2026 Earnings Call. The press release detailing Asbury's second quarter results was issued earlier this morning and is posted on our website at investors.asburyauto.com. Participating with me today are Dan Clara, our President and Chief Executive Officer; and Michael Welch, our Senior Vice President and Chief Financial Officer. At the conclusion of our remarks, we will open the call up for questions and will be available later today for any follow-up questions.

Before we begin, we must remind you that the discussion during the call today is likely to contain forward-looking statements. Forward-looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts and current expectations, each of which is subject to significant uncertainties. For information regarding

Hasbro Today

$96.26 +5.65 (+6.23%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$69.50▼

$106.98Dividend Yield2.91%

P/E Ratio17.31

Price Target$109.07

Hasbro Inc. NASDAQ: HAS is up about 4.6% in the days after the company reported its Q2 2026 earnings report on July 21. The company, known for iconic toys and games like Monopoly and Play-Doh, delivered a top- and bottom-line beat and raised its second-half guidance. More importantly to investors, the company continued to pay down its debt and raised its guidance across the board.

Hasbro's Q2 revenue rose 16% year over year to $1.14 billion. Adjusted earnings per share (EPS) came in at $1.28, roughly flat versus last year but still ahead of expectations. Given the size of the beat, the muted investor reaction stands out. That gap between fundamentals and price action may be where the opportunity lies.

Get Hasbro alerts:

Wizards of the Coast Drives Record GrowthThe Wizards of the Coast and Digital Gaming segment grew revenue 27%, with Magic: The Gathering crossing $500 million in quarterly revenue for the first time ever. Secrets of Strixhaven and the record-breaking Marvel Super Heroes crossover drove the surge. Segment operating profit rose 12% to $270 million, even after absorbing a $56 million digital games impairment.

Consumer Products Show Surprising ResilienceConsumer Products revenue grew 5%, helped by Star Wars: The Mandalorian and Grogu and momentum in GEM Squared categories. That growth came despite lingering disruption from the unauthorized network access disclosed earlier this year. Operating results there remained a loss, but the adjusted loss narrowed versus a year ago. Entertainment revenue fell 20% on deal timing, a smaller and less important piece of the story.

Raised Guidance Signals Stronger 2026 OutlookOverall MarketRank™90th Percentile

Analyst RatingModerate Buy

Upside/Downside15.8% Upside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment0.69 Insider TradingN/A

Proj. Earnings Growth6.85%

See Full Analysis

Management didn't just beat the quarter. It also raised its full-year guidance. Revenue growth is now expected at 5% to 7% in constant currency, up from 3% to 5%. Adjusted operating margin guidance moved up to 25%-26%, and adjusted EBITDA guidance rose to $1.45 billion to $1.50 billion. Operating cash flow nearly tripled year over year, hitting $604 million. Hasbro used that cash to pay down debt and lean into its $1 billion buyback authorization.

Despite the guidance raise and record Magic revenue, HAS trades at approximately 14.7x forward earnings. Analysts covering the stock point to earnings growth and free cash flow growth projections that suggest real undervaluation at that multiple. When a company is compounding double-digit revenue growth and expanding margins, a mid-teens multiple looks conservative.

That valuation gap often shows up when a stock's narrative hasn't caught up with its numbers. Investors may still see Hasbro as a legacy toy company, weathering tariffs and a cyber incident. The underlying business tells a different story.

The "Kidult" Trend Is Fueling Long-Term GrowthHere’s what some investors may be missing about Hasbro. The company’s most important customer today isn't a kid. It's an adult collector. Wizards of the Coast, powered almost entirely by Magic: The Gathering and Dungeons & Dragons, now drives the bulk of the company's profit. The average tabletop Magic player is around 35 years old, with a player tenure of over 5 years.

That's the "kidults" trend in action: adults with disposable income sustaining a hobby they never outgrew. Magic has posted growth in 15 of the last 17 years, with a 17% revenue CAGR since 2009. This isn't a fad. It's a durable, adult-driven demand engine inside a company that’s still branded around children's toys.

That mismatch between public perception and financial reality is a classic behavioral setup. The market prices Hasbro like a toy company. The earnings increasingly come from a trading card and tabletop gaming business with cult-like adult loyalty. As that reality becomes harder to ignore, the multiple may need to catch up.

Technical Breakout Points to More UpsideHAS shares have decisively cleared their 200-day moving average near $87.07. The MACD confirms the strength, with the MACD line at 1.67 above its signal line at 1.85 and a rising histogram. That's a bullish setup building momentum. Shares are still well off their February high above $105, leaving plenty of room to run if buyers keep defending the 200-day line, and this breakout holds.

Analysts See More Than 20% Upside for HASAs of this writing, the stock has a consensus price target of $109.07. That's a gain of approximately 15% from its market close price on July 27. However, after the earnings report, UBS Group reiterated its Buy rating on the stock with a $120 price target.

Hasbro is checking all the boxes for investors. It’s successfully shoring up its balance sheet while returning cash to shareholders through dividends and buybacks. It also has analysts' support and is heading into the two quarters that are historically its strongest for revenue.

Should You Invest $1,000 in Hasbro Right Now?Before you consider Hasbro, you'll want to hear this.

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While Hasbro currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Key Takeaways SBAC may benefit from carrier spending on network expansion and 5G deployments.Site-leasing revenues are expected to rise, while site-development revenue may decline year over year.Higher interest expenses, customer concentration and tenant churn could pressure SBAC's results. SBA Communications Corporation (SBAC - Free Report) is scheduled to report second-quarter 2026 results on Aug. 3, after market close. While the company’s quarterly results might display a rise in revenues year over year, adjusted funds from operations (AFFO) per share is expected to decline.

In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.01, beating the Zacks Consensus Estimate of $2.86. Results reflected a growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.

Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on three occasions and missed in the remaining period, the average beat being 2.11%. The graph below depicts this surprising history:

SBAC: Factors at PlayIn the second quarter, SBA Communications is likely to have benefited from steady carrier spending on network expansion and 5G deployments, supporting leasing activity through new colocations and site upgrades. Its long-term contracts with built-in escalators are likely to have ensured stable site-leasing revenues, while services tied to network construction may have added to growth.

However, SBAC’s performance may have been affected by customer concentration and tenant churn, potentially pressuring leasing activity and growth. Higher interest expenses and a leveraged balance sheet are likely to have been additional headwinds.

Q2 Projections for SBA CommunicationsThe Zacks Consensus Estimate for second-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $658 million, indicating an increase from the year-ago quarter’s $631.8 million.

Site-development revenues are expected to decrease in the second quarter. The consensus mark stands at $49.9 million, implying a fall from $67.2 million reported in the year-ago period.

The Zacks Consensus Estimate for total quarterly revenues is pegged at $703.4 million, calling for year-over-year growth of 0.6%.

The company’s activities in the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has increased two cents to $2.96 over the past three months. However, the figure implies a year-over-year decline of 6.6%.

What Our Quantitative Model Predicts for SBACOur proven model does not conclusively predict a surprise in terms of AFFO per share for SBA Communications this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here.

SBA Communications currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT industry — Host Hotels & Resorts (HST - Free Report) and Lamar Advertising (LAMR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Host Hotels is slated to report quarterly numbers on Aug. 5. HST has an Earnings ESP of +1.73% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LAMR, which is scheduled to report quarterly numbers on Aug. 6, has an Earnings ESP of +0.22% and a Zacks Rank of 3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Key Takeaways GoDaddy expects Q2 revenues of $1.285B-$1.305B, with about 6% growth at the midpoint. GDDY sees AI products and platform upgrades supporting customer growth, retention and margins. GoDaddy has topped earnings estimates in the past four quarters, averaging a 6.10% surprise. GoDaddy (GDDY - Free Report) is scheduled to report second-quarter 2026 results on July 30.

For the second quarter of 2026, GoDaddy expects revenues of $1.285 billion to $1.305 billion, which implies 6% growth at the midpoint. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.29 billion, suggesting a 6.27% year-over-year rise.

The consensus mark for earnings is pinned at $1.72 per share, which has increased by a penny over the past 30 days. This indicates 21.99% growth from the year-ago quarter’s reported figure.

GoDaddy’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 6.10%.

 Let us see how things are likely to have shaped up for GDDY prior to the announcement.

Key Factors to Note for GDDY’s Q2 ReleaseGDDY expects Applications & Commerce (A&C) revenue growth in the low double digits and Core Platform growth in the low single digits for the second quarter of 2026. The Zacks Consensus Estimate for A&C revenues is pegged at $518 million, indicating a 11.6% year-over-year rise. The consensus mark for Core platform revenues is pinned at $776 million, suggesting 2.91% year-over-year growth.

Continued adoption and scaling of its AI-native products, particularly the Airo AI Builder, has been a key catalyst. In the first quarter of 2026, Airo AI Builder achieved a rapid annualized bookings run rate of over $10 million within weeks of its beta launch, demonstrating strong early customer adoption and engagement. The company is ramping up targeted paid marketing for Airo AI Builder in the second quarter of 2026, funded through operational efficiencies, which should further accelerate customer acquisition and monetization.

Another key benefit for the to-be-reported quarter is the upgrade of GoDaddy’s Websites + Marketing platform, which now integrates advanced AI capabilities. Early tests of the upgraded product in the domains funnel have exceeded expectations, validated the direction of the product and supported improvements in customer experience and operational efficiency. As the upgraded platform is rolled out to a broader customer base, it is expected to drive higher conversion, attach and renewal rates, contributing positively to both revenue and customer retention metrics.

Operational efficiency gains from AI deployment across GoDaddy's business are also expected to have supported margin expansion in the to-be-reported quarter. The company has successfully implemented AI-powered automation in customer support (Airo Care) and sales, resulting in significant improvements in resolution rates and conversion rates, especially in non-English markets.

However, GDDY’s intense competition, sensitivity of small-business customers to macro conditions, and periodic bookings volatility tied to product and partner changes are expected to have affected the company’s financial performance in the to-be-reported quarter.

What Our Model SaysPer the Zacks model, 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. That is not the case here.

GoDaddy currently has an Earnings ESP of +3.59% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Amphenol (APH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol shares have gained 10.4% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.

ASE Technology (ASX - Free Report) has an Earnings ESP of +21.21% and a Zacks Rank #1.

ASE Technology shares have surged 127% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.

Fortive (FTV - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.

Fortive shares have gained 13.9% in the year-to-date period. Fortive is set to report second-quarter 2026 results on July 29.

Shares of D-Wave Quantum (QBTS -9.51%) jumped Monday morning on the announcement that AT&T (T +1.35%) is expanding its use of the company's quantum computing technology across its network operations. This is excellent news in a rough year for D-Wave's stock, which is down more than 26% in 2026.

So should investors buy D-Wave Quantum's stock now? 

Today's Change

(

-9.51

%) $

-1.86

Current Price

$

17.66

This new agreement with AT&T expands on a pilot program that demonstrated D-Wave's annealing quantum computing cut processing time for a network optimization workload by 240x, from approximately one hour to 15 seconds.

Ultimately, this result with AT&T could catalyze D-Wave as other companies take notice of the real-world results from the pilot program. The quantum computing industry as a whole could use a boost, having largely lost investor enthusiasm this year after a 2025 run-up.

Image source: The Motley Fool.

D-Wave's stock is still highly speculative and volatile. The commercial applicability of quantum commuting is largely unknown and untested. This nod of credibility from AT&T should help. Investors in D-Wave need to proceed with patience and caution, however, as the company has relatively little revenue compared to its losses.

On the positive side, D-Wave has more than $42 million in remaining performance obligations (RPO), a 563% year-over-year increase. The AT&T deal, paired with this jump in RPOs, could signal real traction for D-Wave's technology.

With the stock down significantly in 2026, risk-tolerant long-term investors willing to tolerate continued volatility may see the AT&T deal as the cue to climb aboard.

Catie Hogan has positions in AT&T. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways Meta Platforms' Q2 ad revenues are estimated at $59.035B, up 26.8% year over year.AI ad systems improved conversions, while generative tools helped advertisers boost campaign returns.Instagram, Threads and WhatsApp gained from AI recommendations, translation, messaging and wider ad reach. Meta Platforms’ (META - Free Report) second-quarter 2026 results, set to be reported on July 29, are expected to reflect the benefits of higher advertising revenues, driven by sustained growth in user engagement and ad impressions across its Family of Apps. In the first quarter of 2026, ad impressions increased 19% year over year, supported by user growth, stronger engagement and ad-load optimization. The average price per ad also rose 12%, reflecting improved ad performance, healthier advertiser demand and favorable currency movements.

AI-driven improvements to Meta’s advertising systems are likely to have remained a major growth catalyst in the to-be-reported quarter. Enhancements to the Lattice and GEM models drove a more than 6% improvement in conversion rates for landing-page-view ads, while the Adaptive Ranking Model generated a 1.6% conversion-rate increase across major Facebook and Instagram surfaces. Better ad selection and targeting likely encouraged advertisers to increase spending by improving campaign returns. Increasing adoption of Meta’s generative-AI advertising tools is also expected to have aided second-quarter performance.

The Meta AI business assistant, AI connectors and value-optimization tools are also helping advertisers create content, resolve account issues and improve return on ad spending. Meta is further optimizing when, where and to whom ads are displayed rather than depending only on higher ad loads. Ad-load increases on Instagram Feed and Reels contributed to first-quarter impression growth, although user and engagement gains remained the larger driver. The company’s measured approach to placing ads at more relevant moments is likely to have supported incremental conversions without materially weakening the user experience in the second quarter.

These trends are likely to have continued supporting advertising revenues in the to-be-reported quarter. The Zacks Consensus Estimate for Meta’s second-quarter advertising revenues is pegged at $59.035 billion, indicating growth of 26.8% year over year. Click here to learn how Meta’s overall second-quarter performance is likely to be.

META’s AI Push to Aid Instagram, Threads and WhatsApp in Q2Instagram is expected to have benefited significantly from AI-powered recommendation and content-understanding improvements. Ranking enhancements drove a 10% increase in Reels time spent in the first quarter of 2026. Meta doubled the length of user-interaction sequences used to train Instagram models and improved the richness of the data describing each interaction, allowing its systems to better understand users’ interests. Faster indexing and improved content recognition also increased the freshness and diversity of recommendations, with same-day posts accounting for more than 30% of recommended Reels.

AI translation and dubbing are likely to have further expanded Instagram’s content inventory and engagement. More than half a billion users on each of Facebook and Instagram were watching AI-translated videos weekly. Meta’s policy of allowing creators’ videos to reach viewers across different languages and regions means these capabilities are likely to have increased watch time, improved content discovery and created additional advertising opportunities on Instagram during the to-be-reported quarter.

Threads is expected to have benefited from improvements in AI-powered content recommendations, particularly around timeliness, relevance and cultural trends. The platform had more than 150 million daily active users, while Meta continued investing in creator partnerships and priority topics such as sports, entertainment and K-pop. Ads were expanded to more than 200 countries, and improved recommendations are likely to have strengthened user engagement and advertising inventory, although Threads is not expected to be a meaningful contributor to Meta’s overall revenues in 2026.

WhatsApp’s prospects are likely to have benefited from Meta’s AI push through business messaging, Business AIs and the gradual rollout of Status ads. Business AIs were facilitating more than 10 million conversations per week, up from 1 million at the beginning of the year, helping small businesses answer customer questions and engage potential buyers.

The Zacks Consensus Estimate for Meta’s second-quarter Family of Apps revenues is pegged at $59.605 billion, indicating growth of 26.4% year over year.

Zacks Rank & Upcoming Earnings to WatchMeta currently has a Zacks Rank #3 (Hold).

Reddit (RDDT - Free Report) , Arrow Electronics (ARW - Free Report) , and HubSpot (HUBS - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Reddit, Arrow Electronics and HubSpot are expected to report their quarterly results on July 30, Aug. 6, and Aug. 5, respectively. Shares of Reddit and HubSpot have dropped 22.1% and 44.5%, respectively, while Arrow Electronics has jumped 93.5% year to date.

by John Cook on Jul 28, 2026 at 9:33 amJuly 28, 2026 at 9:33 am

Amazon’s next pillar could be built on a foundation of silicon.

In a new interview with Fortune, Amazon founder and Executive Chair Jeff Bezos says the company’s custom chip business is on track to become one of Amazon’s most durable businesses, placing it alongside Marketplace, Prime, and Amazon Web Services as a core pillar of the company.

“A few of our offerings have become durable pillars, things like Marketplace and Prime and AWS,” Bezos told Fortune. “What I see right now is that our chips business, our silicon business, is lining up to be our next pillar.”

The comments offer one of Bezos’ clearest public endorsements yet of Amazon’s push to design its own chips for artificial intelligence, an increasingly important strategy as demand for AI computing soars and companies look for alternatives to Nvidia’s dominant processors.

More than a decade of investment Amazon has invested heavily in custom silicon through Annapurna Labs, the Israeli chip startup it acquired in 2015. The company now develops its own AI chips under the Trainium and Inferentia brands, designed to train and run large language models while reducing costs for customers using Amazon Web Services.

AWS has positioned the chips as a lower-cost alternative for AI developers. AWS has positioned the chips as a lower-cost alternative for AI developers. Anthropic trains and runs its Claude models on Trainium, and OpenAI has committed to consume about 2 gigawatts of Trainium capacity, ramping in 2027.

The company disclosed revenue for its in-house data center chips for the first time earlier this year, and since then its Trainium, Graviton, and Nitro chips have grown to a combined annual run rate of more than $20 billion. Amazon has been pouring billions of dollars into AI infrastructure, including new data centers and custom networking hardware.

Amazon CEO Andy Jassy has repeatedly argued that demand for AI computing will remain strong for years, making investments in chips, servers, networking equipment, and power generation essential to the company’s long-term growth.

In an earnings release earlier this year, Jassy signaled plans to pour a record $200 billion in capital expenditures across Amazon in 2026, citing “seminal opportunities like AI, chips, robotics, and low earth orbit satellites.”

The real potential for Amazon’s chips business could come in going beyond the walls of its own data centers. Jassy wrote in his annual letter to shareholders this year that it’s “quite possible” Amazon will sell racks of its internally developed chips to third parties in the future.

Amazon’s fourth pillar? This discussion about Amazon’s “pillars” goes back to Bezos’ 2014 letter to shareholders, where he described four characteristics of what he called a “dreamy” business: “Customers love it, it can grow to very large size, it has strong returns on capital, and it’s durable in time — with the potential to endure for decades.”

AWS, Marketplace, and Prime are considered the first three pillars. The question of what could become Amazon’s “fourth pillar” has been debated for more than a decade, with areas including shipping and logistics and Alexa cited as contenders in the past.

The company’s big bet on silicon also was emphasized by Jassy in the Fortune piece. He told the magazine that chips are often the key to computing. “The growth in AI has been so significant, but we have a chips business that we built over the last decade here that is growing very quickly,” he said.

The profile appeared alongside Fortune’s release of its 2026 Global 500 ranking, which placed Amazon at No. 1 for the first time, ending Walmart’s 12-year run as the world’s largest company by revenue after Amazon surpassed $700 billion in annual sales, as reported previously.

Walmart fell to No. 2, followed by State Grid of China, UnitedHealth Group, and Saudi Aramco. The magazine reports that Amazon is on pace to be the first trillion dollar company by revenue.

Amazon reports Q2 2026 earnings on Thursday afternoon. Check back with GeekWire for coverage.

Key Takeaways United Airlines posted an earnings beat, but higher fuel costs drove a 48.6% year-over-year decline.UAL expects 2026 adjusted EPS of $9-$11 as revenue per seat mile growth is projected to improve.United Airlines has $19.6B in liquidity, but $26.46B in financial liabilities adds balance-sheet risk. United Airlines Holdings (UAL - Free Report) ) has a balanced investment setup after a strong revenue quarter. Demand, premium revenue and loyalty trends support the recovery case, but fuel and labor costs are pressuring margins.

The stock’s appeal depends on whether United Airlines can turn revenue strength into steadier earnings expansion. Rising estimates and liquidity help, while execution risk keeps the case from looking clear-cut.

UAL’s Earnings Beat Masks Profit PressureUnited Airlines reported second-quarter 2026 adjusted earnings of $1.99 per share, above the Zacks Consensus Estimate of $1.92. Still, earnings declined 48.6% year over year as higher fuel costs weighed on profitability.

Adjusted operating income fell 46.3% to $951 million. Adjusted operating margin narrowed 6.2 percentage points to 5.4%, showing that the earnings beat did not erase the pressure from cost inflation.

United Airlines’ Outlook Supports RecoveryUnited Airlines now expects 2026 adjusted earnings of $9-$11 per share. For the third quarter, adjusted earnings are projected to be in the range of $2.50-$3.50 per share, based on an assumed all-in fuel price of about $3.69 per gallon.

The Zacks Consensus Estimate for current-year earnings has increased 4.7% in the past four weeks. Management also expects third- and fourth-quarter total revenue per available seat mile growth to exceed the second quarter’s 12.1% increase.

UAL’s Valuation Offers a Mixed SignalUAL trades at 0.54X forward 12-month price-to-sales, close to 0.53X for the airline sub-industry. The multiple is also above United Airlines' five-year median of 0.33X, limiting the argument that the stock is uniformly cheap.

The forward price-to-earnings ratio of 9.4 and PEG ratio of 0.9 add support to the valuation case. Delta Air Lines (DAL - Free Report) and American Airlines Group (AAL - Free Report) remain useful peer comparisons for investors weighing airline demand, pricing and cost exposure across the group. Delta Air Lines operates a broad global network, while American Airlines Group is the parent of American Airlines and trades under AAL.

United Airlines Has Limited Target UpsideUnited Airlines' $131 price target compares with the reported share price of $120.57. That implies positive but moderate appreciation potential from the cited level.

The modest spread puts more weight on execution. Continued earnings delivery, fare realization and fuel-cost recovery are central to whether UAL becomes more attractive from here.

UAL’s Balance Sheet Adds Flexibility and RiskUnited Airlines ended the second quarter with $19.6 billion of available liquidity and trailing 12-month net leverage of 2.2 times. That liquidity gives the airline room to fund fleet and customer-facing investments while managing cyclical swings.

Debt remains part of the risk profile. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, making balance-sheet discipline important as United Airlines works through fuel volatility and capital spending needs.

United Airlines’ Scores Favor Selective PatienceThe bottom line: United Airlines has revenue momentum, a reasonable valuation and improving estimates, but margin compression keeps the investment case mixed. Fuel, labor and execution risks still matter.

The stock currently carries a Zacks Rank #3 (Hold), which points to patience rather than an aggressive near-term buying stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company's Value Score of A supports the valuation case, while the Growth Score of C, the Momentum Score of D and a VGM Score of B point to attractive features, not a decisive signal.

Exxon Mobil (NYSE:XOM | XOM Price Prediction) enters its July 31 earnings report with 43 consecutive years of dividend growth and a $20 billion annual buyback program. Strong production from Guyana and the Permian, combined with higher oil prices during Q2, could give the energy giant another opportunity to extend its four-quarter earnings-beat streak.

Higher Oil Prices Could Drive Another Earnings Beat ExxonMobil has beaten EPS four straight quarters. Q1 2026 adjusted EPS came in at $1.16 versus $1.0074, a 15.15% beat, and Polymarket puts an 84.5% probability on another beat on July 31. Golden Pass LNG Train 1 loaded its first cargo in April 2026, Guyana output crossed 900,000 gross barrels per day, and the Permian hit a record 1.8M boed in Q4 2025. WTI traded between $80 and $114 during Q2, providing a strong upstream backdrop.

A 43-Year Dividend Growth Streak Meets a $20 Billion Buyback Exxon pays a 2.65% dividend yield, and the last hike (4% announced in Q3 2025) extended the 43-year growth streak. Layer the $20 billion 2026 repurchase program (with $4.9 billion executed in Q1) on top of the dividend, and total shareholder yield lands much higher than the visible dividend yield.

Exxon’s Balance Sheet Supports the Valuation XOM trades at a P/E of 23, an EV/EBITDA of 10.71, and a Price/Book of 2.51. These don’t seem like unreasonable multiples for a business that generated $26.13 billion in free cash flow in 2025 with Debt/Equity of just 0.168 and interest coverage of 56.28x. The stock’s beta sits at just 0.162, making it a low-volatility stock relative to the broader energy sector.

Exxon Looks Stronger Than Chevron on Cash Flow and Valuation Chevron (NYSE:CVX) trades at a P/E of 32 (versus XOM’s 23), rides a shorter 39-year dividend streak, and reported negative $1.55 billion of free cash flow in Q1 2026 as capex outran operating cash.

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Chevron is also investing in recently acquired Hess assets, Guyana, the Gulf of Mexico, and the Permian Basin to support 7% to 10% production growth in 2026. That spending could strengthen future cash flow, but Exxon currently offers the more attractive combination of valuation, reported free cash flow, dividend history, and buyback scale.

The Headline Profit Decline Hides Stronger Underlying Earnings Exxon’s reported Q1 profit fell sharply, but the headline decline included billions of dollars in derivative timing effects and disruption costs. Excluding those items, underlying earnings increased to $8.77 billion from $7.58 billion. As CEO Darren Woods said on the Q1 call, “This quarter demonstrated that ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.”

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Cincinnati Financial Corporation (CINF) Q2 2026 Earnings Call July 28, 2026 11:00 AM EDT

Company Participants

Dennis McDaniel - VP & Investor Relations Officer
Stephen Spray - President, CEO & Director
Michael J. Sewell - CFO, Principal Accounting Officer, Executive VP & Treasurer

Conference Call Participants

Michael Phillips - Oppenheimer & Co. Inc., Research Division
Charles Peters - Raymond James & Associates, Inc., Research Division
Joshua Shanker - BofA Securities, Research Division
Michael Zaremski - BMO Capital Markets Equity Research
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Matthew Palazola

Presentation

Operator

Good day, everyone, and thank you for joining the Cincinnati Financial Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's session is being recorded. It is my pleasure to turn the floor over for opening remarks and introductions to Mr. Dennis McDaniel, Investor Relations. Please go ahead, sir.

Dennis McDaniel
VP & Investor Relations Officer

Hello. This is Dennis McDaniel at Cincinnati Financial. Thank you for joining us for our second quarter 2026 earnings conference call. Late yesterday, we issued a news release on our results, along with our supplemental financial package, including our quarter end investment portfolio. To find copies of any of these documents, please visit our investor website, investors.cinfin.com. The shortest route to the information is the Quarterly Results section near the middle of the Investor Overview page.

On this call, you'll first hear from President and Chief Executive Officer, Steve Spray; and then from Executive Vice President and Chief Financial Officer, Mike Sewell. After their prepared remarks, investors participating on the call may ask questions. At that time, some responses may be made by others in the room with us, including Executive Chairman, Steve Johnston; Chief Investment Officer, Steve Soloria; and Cincinnati Insurance's Chief Claims Officer, Marc Schambow; and Senior Vice President of Corporate Finance, Andy Schnell.

Welltower Inc. (WELL) Q2 2026 Earnings Call July 28, 2026 9:00 AM EDT

Company Participants

Matthew McQueen - Chief Legal Officer, General Counsel & Corporate Secretary
Shankh Mitra - CEO & Director
John Burkart - Vice Chairman & COO
Nikhil Chaudhri - Co-President & Chief Investment Officer
Timothy Lordan

Conference Call Participants

Ronald Kamdem - Morgan Stanley, Research Division
John Kilichowski
Vikram Malhotra - Mizuho Securities USA LLC, Research Division
Omotayo Okusanya - Deutsche Bank AG, Research Division
Nicholas Yulico - Scotiabank Global Banking and Markets, Research Division
James Kammert - Evercore ISI Institutional Equities, Research Division
Farrell Granath - BofA Securities, Research Division
Michael Goldsmith - UBS Investment Bank, Research Division
Michael Stroyeck - Green Street Advisors, LLC, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Seth Bergey - Citigroup Inc., Research Division
Michael Carroll - RBC Capital Markets, Research Division
Richard Anderson - Cantor Fitzgerald & Co., Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Austin Wurschmidt - KeyBanc Capital Markets Inc., Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Wesley Golladay - Robert W. Baird & Co. Incorporated, Research Division
David Rodgers - Raymond James & Associates, Inc., Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Welltower Second Quarter 2026 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Matt McQueen, Chief Legal Officer and General Counsel. Matt, please go ahead.

Matthew McQueen
Chief Legal Officer, General Counsel & Corporate Secretary

Thank you, and good morning. As a reminder, certain statements made during this call may be deemed forward-looking statements in the meaning of the Private Securities Litigation Reform Act. Although Welltower believes any forward-looking statements are based on reasonable assumptions, the company can give no assurances that its projected results will

Key Takeaways SAP shares fell 29.6% year to date as lower 2026 profit guidance complicated the valuation reset.SAP's 22.9B euros cloud backlog rose 27%, supported by RISE and GROW cloud ERP migrations.Integration costs, estimate cuts and modest price-target upside argue for investor patience. SAP SE (SAP - Free Report) faces a harder investor debate after a steep share-price reset and a reduced profit outlook for 2026. The selloff has lowered the valuation, but weaker earnings momentum keeps the buy case from being straightforward.

The longer-term story still rests on cloud ERP migration, AI adoption and cash generation. The near-term question is whether those strengths can outweigh guidance pressure, integration costs and negative estimate revisions.

SAP Valuation Reflects a Sharp ResetSAP shares have fallen 29.6% year to date and 40.5% over the trailing 12 months. That decline has pulled expectations down sharply and shifted the debate from growth scarcity to whether the reset is deep enough.

The stock trades at 18.68 times forward earnings. That multiple needs to be judged against the software sub-industry, the broader technology sector and the S&P 500 benchmarks, since SAP still carries a premium tied to its cloud transition and enterprise software position.

SAP Backlog Supports Future RevenueSAP’s current cloud backlog stood at €22.9 billion, up 27% year over year. That backlog gives investors a clearer view into contracted future cloud revenues than traditional license-heavy software models typically provide.

Cloud ERP Suite adoption remains important to that visibility. RISE with SAP and GROW with SAP continue to support customer migration to cloud ERP, helping SAP convert legacy enterprise relationships into recurring cloud demand.

Oracle Corporation (ORCL - Free Report) remains a relevant comparison because its Fusion applications also target cloud ERP, finance, supply chain and human capital management customers. Oracle’s embedded AI push underscores how competitive the market for enterprise workflow automation has become.

SAP Profit Guidance Limits the UpsideThe main offset is the lowered 2026 non-IFRS operating profit guidance from €11.9–€12.3 billion to €11.8–€12.2 billion. That reduction narrows the room for positive earnings surprises at a time when investors are already questioning the speed of cloud-led margin expansion.

Image Source: Zacks Investment Research

Dremio and Prior Labs are expected to lower annual profit by more than €100 million because of integration costs and ongoing investment. The deals may deepen SAP’s data and AI capabilities, but the near-term effect is dilution rather than margin relief.

SAP Presents a Mixed Risk-Reward CaseSAP’s $184 price target compares with a reported share price of $171.01. The implied upside is modest, which limits the argument for chasing the stock even after the sharp pullback.

Free cash flow and buybacks still provide support. SAP reaffirmed its ability to fund innovation and shareholder returns, but declining legacy revenue and revenue acceleration that is now expected in 2027 leave the stock dependent on execution.

Microsoft Corporation (MSFT - Free Report) is another key enterprise software reference point because Dynamics 365, Power Platform and Copilot offerings compete for business application and workflow automation budgets. Its presence raises the bar for SAP’s AI monetization and customer retention.

SAP Scores Argue for Investor PatienceThe bottom line is that SAP’s lower valuation is not enough by itself to make the stock a clear buy. The cloud backlog, AI opportunity and cash flow profile support the long-term case, but the profit cut and modest price-target upside argue for selectivity.

SAP currently carries a Zacks Rank #4 (Sell). Recent downward revisions to earnings estimates reinforce a weak one-to-three-month outlook, which matters because the Zacks Rank is built around the earnings revision trend. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores add to that caution. SAP has a Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of D. Those grades suggest the stock still lacks a favorable blend of valuation, growth quality and price momentum despite the substantial reset.

AbbVie (NYSE:ABBV | ABBV Price Prediction) enters its July 31 Q2 earnings report with a 2.62% dividend yield, raised earnings guidance, and two blockbuster drugs growing above 20%. Skyrizi and Rinvoq have already replaced Humira as the company’s growth engines, strengthening AbbVie’s case as a combination of income, growth, and relatively low volatility.

AbbVie Offers Growth at Just 18x Forward Earnings ABBV changes hands at $265.52 with a forward P/E of 18x and a PEG of 0.43, with a beta of 0.28. Wall Street’s consensus target sits at $267.79 across 16 Buy and 8 Strong Buy ratings. AbbVie trades at a multiple below the S&P 500 average paired with growth prospects and roughly a quarter of the market’s volatility.

A 5.5% Dividend Increase Strengthens the Income Case AbbVie’s annualized dividend of $6.74 per share means the stock offers a 2.62% yield. The most recent quarterly hike lifted the payout to $1.73 from $1.64, a 5.5% raise. Management raised full-year adjusted EPS guidance to $14.08 to $14.28 and pointed to Q2 EPS of $3.74 to $3.78 on roughly $16.7 billion in revenue.

Skyrizi and Rinvoq Have Become $32 Billion Growth Engines Skyrizi hit $4.48 billion in Q1 2026 (up 30.9% YoY) and Rinvoq added $2.12 billion (up 23.3%). Management raised full-year Skyrizi guidance to $21.6 billion and Rinvoq to $10.2 billion. CEO Rob Michael said flatly, “We expect to exceed the peak consensus that’s in those models.”

AbbVie Has Already Crossed the Patent Cliff Facing Merck Pfizer (NYSE:PFE) has returned -22.52% over five years and is up just 3.67% year-to-date, versus ABBV’s 163.87% five-year and 16.19% YTD return, with far weaker top-line momentum.

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Merck (NYSE:MRK) has rallied hard (61.08% in one year), but it carries a Keytruda concentration problem and a 2028 patent cliff. ABBV has already crossed the biosimilar valley Merck is walking toward.

The Bottom Line: AbbVie Has Successfully Rebuilt Its Growth Engine Humira revenue continues to decline as biosimilar competition intensifies, but that erosion no longer defines AbbVie’s overall trajectory. Skyrizi and Rinvoq generated a combined $6.60 billion last quarter, helping total immunology revenue grow 16.4%.

AbbVie now expects the two drugs to generate nearly $32 billion in annual sales, while its dividend continues to rise. The July 31 report will show whether those newer products can keep driving growth and support another increase to full-year guidance.

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Contact [email protected] for any questions or corrections.