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, /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) (W. P. Carey or the Company), a net lease real estate investment trust, today reported its financial results for the second quarter ended June 30, 2026.

Financial Highlights

2026 Second Quarter

Net income attributable to W. P. Carey (millions)

$185.4

Diluted earnings per share

$0.82

AFFO (millions)

$305.4

AFFO per diluted share

$1.34

Raising and narrowing 2026 AFFO guidance range to between $5.19 and $5.27 per diluted share, implying 5.2% year-over-year growth at the midpoint Full-year investment volume assumption raised to between $1.7 billion and $2.1 billion Second quarter cash dividend of $0.940 per share, equivalent to an annualized dividend rate of $3.76 per share Real Estate Portfolio

Investment volume of $1.3 billion completed year to date, including $706.5 million during the second quarter Active capital investments and commitments of $132.7 million scheduled to be completed during the second half of 2026 Gross disposition proceeds of $246.2 million during the first half of 2026, including $83.7 million during the second quarter Contractual same-store rent growth of 2.6% year over year Balance Sheet and Capitalization

Equity –  Sold 5.3 million shares of common stock subject to forward sale agreements during the second quarter, representing total gross proceeds of approximately $392 million Settled a portion of outstanding forward sale agreements during the second quarter for net proceeds totaling approximately $345 million At the end of the second quarter approximately $691 million of equity subject to forward sale agreements remained available for settlement Debt – Subsequent to quarter end, issued $350 million of 5.200% Senior Unsecured Notes due 2036, with proceeds scheduled to be used to prepay $350 million of 4.250% Senior Unsecured Notes due October 2026 MANAGEMENT COMMENTARY

"The momentum we established last year continued through the first half of 2026, with a strong pace of investment activity and successful capital markets execution," said Jason Fox, Chief Executive Officer. "We continue to see compelling acquisition opportunities at attractive spreads and with our anticipated investment activity pre-funded well into 2027, we have ample capacity to continue investing.

"Our outlook for potential rent loss has also improved and we expect to increasingly benefit from inflationary tailwinds flowing through our CPI-linked leases. Reflecting our performance to date and outlook for the remainder of the year, I'm pleased to say we're again raising our expectations for both full-year investment volume and AFFO per share, with AFFO growth now above 5% at the midpoint."

QUARTERLY FINANCIAL RESULTS

Revenues

Revenues, including reimbursable costs, for the 2026 second quarter totaled $461.1 million, up 7.0% from $430.8 million for the 2025 second quarter. Lease revenues increased due primarily to net investment activity. Income from finance leases and loans receivable increased primarily as a result of net investment activity. Operating property revenues decreased due primarily to the sale of the Company's self-storage operating portfolio, comprising the sale of 63 properties in 2025 and 11 during the 2026 first quarter. Net Income Attributable to W. P. Carey

Net income attributable to W. P. Carey for the 2026 second quarter was $185.4 million, up 262.1% from $51.2 million for the 2025 second quarter, due primarily to a mark-to-market gain of $41.6 million recognized on the Company's shares of Lineage during the current-year period (as compared to a loss of $69.0 million recognized during the prior-year period), higher gains from remeasurement of foreign debt, the Company's $49.9 million proportionate share of a gain on sale recognized by a jointly-owned investment during the current-year period, and the accretive impact of net investment activity, partly offset by higher impairment charges and lower gain on sale of real estate. Adjusted Funds from Operations (AFFO)

AFFO for the 2026 second quarter was $1.34 per diluted share, up 4.7% from $1.28 per diluted share for the 2025 second quarter, primarily reflecting accretive net investment activity, partly offset by the impact of higher interest rates from debt refinancings on interest expense and the settlement of forward equity. Note: Further information concerning AFFO, which is a non-GAAP supplemental performance metric, is presented in the accompanying tables and related notes.

Dividend

On June 11, 2026, the Company reported that its Board of Directors increased its quarterly cash dividend to $0.940 per share, equivalent to an annualized dividend rate of $3.76 per share, representing a 4.4% increase compared to the 2025 second quarter. The dividend was paid on July 15, 2026 to shareholders of record as of June 30, 2026. AFFO GUIDANCE

The Company's AFFO per diluted share guidance and key underlying assumptions have been updated as follows:
Prior

2026 Guidance

Updated

2026 Guidance

AFFO per diluted share

$5.16 – $5.26

$5.19 – $5.27

Investment volume

$1.5 – $2.0 billion

$1.7 – $2.1 billion

Disposition volume

$250 – $750 million

$350 – $550 million

General and administrative expenses

$103 – $106 million

$103 – $106 million

Property expenses, excluding reimbursable tenant costs

$56 – $60 million

$54 – $58 million

Tax expense (on an AFFO basis)

$45 – $49 million

$43 – $47 million

The Company has raised and narrowed its AFFO per diluted share guidance range for the 2026 full year, primarily reflecting higher expected lease revenues (including the impacts of higher anticipated investment volume and a more favorable outlook for potential rent loss), together with certain lower projected expenses, partly offset by the impact of settling forward equity. Note: The Company does not provide guidance on net income. The Company only provides guidance on AFFO and does not provide a reconciliation of this forward-looking non-GAAP guidance to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliation as a result of their unknown effect, timing and potential significance. Examples of such items include impairments of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions.

REAL ESTATE

Investments

Year to date, the Company completed investments totaling $1.3 billion, including $706.5 million during the 2026 second quarter. The Company currently has five capital investments and commitments totaling $132.7 million scheduled to be completed during the second half of 2026. In addition, the Company has five capital investments and commitments totaling $165.9 million scheduled to be completed over the course of 2027. Dispositions

During the first half of 2026, the Company disposed of 28 properties for gross proceeds totaling $246.2 million, including nine properties during the 2026 second quarter for gross proceeds totaling $83.7 million. Contractual Same-Store Rent Growth

As of June 30, 2026, contractual same-store rent growth was 2.6% year over year on a constant currency basis. Composition

As of June 30, 2026, the Company's net lease portfolio consisted of 1,748 properties, comprising 188 million square feet leased to 384 tenants, with a weighted-average lease term of 12.2 years and an occupancy rate of 98.5%. BALANCE SHEET AND CAPITALIZATION

Liquidity

As of June 30, 2026, the Company had total liquidity of $2.7 billion, primarily comprising $1.9 billion of available capacity under its Senior Unsecured Credit Facility (net of amounts reserved for standby letters of credit), in addition to cash and cash equivalents and available net proceeds under unsettled forward equity sale agreements. Forward Equity

During the 2026 second quarter, the Company sold 5,271,817 shares of common stock under its ATM program pursuant to forward sale agreements at a weighted-average gross price of $74.32 per share, representing total gross proceeds of approximately $392 million. During the 2026 second quarter, the Company settled a portion of its outstanding forward sale agreements, issuing 5,066,282 shares of common stock for net proceeds of approximately $345 million. As of June 30, 2026, the Company had a total of 9,914,031 shares available for settlement under forward sale agreements, representing anticipated net proceeds totaling approximately $691 million. Senior Unsecured Notes – Subsequent to Quarter End

As previously announced, on July 2, 2026, the Company completed an underwritten public offering of $350 million aggregate principal amount of 5.200% Senior Notes due September 15, 2036. The Company is scheduled to use the offering proceeds on July 29, 2026 to prepay the $350 million of 4.250% Senior Unsecured Notes due October 2026, with no associated prepayment costs. *     *     *     *     *

Supplemental Information

The Company has provided supplemental unaudited financial and operating information regarding the 2026 second quarter and certain prior quarters, including a description of non-GAAP financial measures and reconciliations to GAAP measures, in a Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on July 28, 2026, and made available on the Company's website at ir.wpcarey.com/investor-relations.

*     *     *     *     *

Live Conference Call and Audio Webcast Scheduled for Wednesday, July 29, 2026 at 11:00 a.m. Eastern Time 
Please dial in at least 10 minutes prior to the start time.

Date/Time: Wednesday, July 29, 2026 at 11:00 a.m. Eastern Time
Call-in Number: 1 (877) 465-1289 (U.S.) or +1 (201) 689-8762 (international)

Live Audio Webcast and Replay: www.wpcarey.com/earnings

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W. P. Carey Inc.

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,748 net lease properties covering approximately 188 million square feet as of June 30, 2026. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant industrial, warehouse and retail properties located in the U.S. and Europe, under long-term net leases with built-in rent escalations.

www.wpcarey.com 

*     *     *     *     *

Cautionary Statement Concerning Forward-Looking Statements

Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as "may," "will," "should," "would," "will be," "goals," "believe," "project," "expect," "anticipate," "intend," "estimate," "opportunities," "possibility," "strategy," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements made by Mr. Jason Fox regarding future acquisition opportunities, outlook for potential rent loss, anticipated benefits from CPI-linked rent escalations and expectations for both full-year 2026 investment volume and AFFO per share. These statements are based on the current expectations of our management, and it is important to note that our actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable risks or uncertainties, like the risks related to fluctuating interest rates, the impact of inflation and tariffs on our tenants and us, the effects of pandemics and global outbreaks of contagious diseases, and domestic or geopolitical crises (such as terrorism, military conflict, war or the perception that hostilities may be imminent), political instability or civil unrest, or other conflict, and those additional risk factors discussed in reports that we have filed with the SEC, could also have material adverse effects on our future results, performance or achievements. Discussions of some of these other important factors and assumptions are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Part I, Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

Institutional Investors:
Peter Sands
1 (212) 492-1110
[email protected]

Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
[email protected] 

Press Contact:
Amanda Woodward
1 (212) 492-1171
[email protected] 

*     *     *     *     *

W. P. CAREY INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share amounts)

June 30, 2026

December 31, 2025

Assets

Investments in real estate:

Land, buildings and improvements — net lease and other

$         15,222,867

$           14,451,306

Land, buildings and improvements — operating properties

181,694

286,079

Net investments in finance leases and loans receivable

1,174,274

1,171,886

In-place lease intangible assets and other

2,581,342

2,466,199

Above-market rent intangible assets

653,281

668,707

Investments in real estate

19,813,458

19,044,177

Accumulated depreciation and amortization (a)

(3,656,944)

(3,578,330)

Assets held for sale, net

10,441

3,327

Net investments in real estate

16,166,955

15,469,174

Equity method investments

279,503

310,178

Cash and cash equivalents

163,538

155,329

Other assets, net

1,042,026

1,068,480

Goodwill

982,611

987,071

Total assets

$         18,634,633

$           17,990,232

Liabilities and Equity

Debt:

Senior unsecured notes, net

$           7,376,851

$             6,950,261

Unsecured term loans, net

1,164,524

1,196,366

Unsecured revolving credit facility

116,230

435,417

Non-recourse mortgages, net

194,246

140,646

Debt, net

8,851,851

8,722,690

Accounts payable, accrued expenses and other liabilities

621,068

670,038

Below-market rent and other intangible liabilities, net

97,192

104,055

Deferred income taxes

157,117

151,820

Dividends payable

218,789

207,487

Total liabilities

9,946,017

9,856,090

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued

—

—

Common stock, $0.001 par value, 450,000,000 shares authorized; 227,807,251 and 219,145,876
  shares, respectively, issued and outstanding

228

219

Additional paid-in capital

12,418,948

11,830,737

Distributions in excess of accumulated earnings

(3,605,214)

(3,539,592)

Deferred compensation obligation

100,172

80,239

Accumulated other comprehensive loss

(241,737)

(253,346)

Total stockholders' equity

8,672,397

8,118,257

Noncontrolling interests

16,219

15,885

Total equity

8,688,616

8,134,142

Total liabilities and equity

$         18,634,633

$           17,990,232

________

(a)

Includes $2.2 billion and $2.1 billion of accumulated depreciation on buildings and improvements as of June 30, 2026 and December 31, 2025, respectively, and $1.5 billion of accumulated amortization on lease intangibles as of both June 30, 2026 and December 31, 2025.

W. P. CAREY INC.

Quarterly Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share amounts)

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

Revenues

Real Estate:

  Lease revenues

$            409,661

$            402,831

$            364,195

  Income from finance leases and loans receivable

27,162

27,686

20,276

  Operating property revenues

11,638

12,050

34,287

  Other lease-related income

11,209

10,452

9,643

459,670

453,019

428,401

Investment Management:

  Other advisory income and reimbursements

1,000

1,000

1,072

  Asset management revenue

394

490

1,304

1,394

1,490

2,376

461,064

454,509

430,777

Operating Expenses

Depreciation and amortization

134,378

136,183

120,595

Impairment charges — real estate

79,421

40,008

4,349

General and administrative

25,934

27,348

24,150

Reimbursable tenant costs

19,472

19,692

17,718

Property expenses, excluding reimbursable tenant costs

15,206

14,552

13,623

Stock-based compensation expense

13,909

7,441

10,943

Operating property expenses

8,603

8,694

16,721

Merger and other expenses

613

1,180

192

297,536

255,098

208,291

Other Income and Expenses

Interest expense

(78,979)

(78,460)

(71,795)

Earnings from equity method investments (a)

55,579

4,543

6,161

Other gains and (losses) (b)

48,558

6,791

(148,768)

Gain on sale of real estate, net

5,819

54,141

52,824

Non-operating income (c)

4,245

4,704

3,495

35,222

(8,281)

(158,083)

Income before income taxes

198,750

191,130

64,403

Provision for income taxes

(13,091)

(14,634)

(13,091)

Net Income

185,659

176,496

51,312

Net income attributable to noncontrolling interests

(270)

(194)

(92)

Net Income Attributable to W. P. Carey

$            185,389

$            176,302

$              51,220

Basic Earnings Per Share

$                  0.82

$                  0.80

$                  0.23

Diluted Earnings Per Share

$                  0.82

$                  0.80

$                  0.23

Weighted-Average Shares Outstanding

Basic

225,971,719

220,620,496

220,569,259

Diluted

227,215,203

221,618,296

220,874,935

Dividends Declared Per Share

$               0.940

$               0.930

$               0.900

__________

(a)

Amount for the three months ended June 30, 2026 includes our $49.9 million proportionate share of a gain recognized on the sale of a portfolio by a jointly owned investment.

(b)

Amount for the three months ended June 30, 2026 primarily comprises a mark-to-market unrealized gain for our investment in shares of Lineage of $41.6 million, net gains on foreign currency exchange rate movements of $10.8 million and a non-cash allowance for credit losses of $6.4 million.

(c)

Amount for the three months ended June 30, 2026 comprises a dividend of $2.9 million from our investment in shares of Lineage, interest income on deposits of $0.8 million and realized gains on foreign currency exchange derivatives of $0.5 million.

W. P. CAREY INC.

Year-to-Date Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share amounts)

Six Months Ended June 30,

2026

2025

Revenues

Real Estate:

  Lease revenues

$            812,492

$            717,963

  Income from finance leases and loans receivable

54,848

37,734

  Operating property revenues

23,688

67,381

  Other lease-related income

21,661

12,764

912,689

835,842

Investment Management:

  Other advisory income and reimbursements

2,000

2,139

  Asset management and other revenue

884

2,654

2,884

4,793

915,573

840,635

Operating Expenses

Depreciation and amortization

270,561

250,202

Impairment charges — real estate

119,429

11,203

General and administrative

53,282

51,117

Reimbursable tenant costs

39,164

34,810

Property expenses, excluding reimbursable tenant costs

29,758

25,329

Stock-based compensation expense

21,350

20,091

Operating property expenses

17,297

33,265

Merger and other expenses

1,793

748

552,634

426,765

Other Income and Expenses

Interest expense

(157,439)

(140,599)

Earnings from equity method investments

60,122

11,539

Gain on sale of real estate, net

59,960

96,601

Other gains and (losses)

55,349

(190,965)

Non-operating income

8,949

11,405

26,941

(212,019)

Income before income taxes

389,880

201,851

Provision for income taxes

(27,725)

(24,723)

Net Income

362,155

177,128

Net income attributable to noncontrolling interests

(464)

(84)

Net Income Attributable to W. P. Carey

$           361,691

$           177,044

Basic Earnings Per Share

$                1.62

$                0.80

Diluted Earnings Per Share

$                1.61

$                0.80

Weighted-Average Shares Outstanding

Basic

223,310,890

220,485,859

Diluted

224,609,380

220,913,225

Dividends Declared Per Share

$              1.870

$              1.790

W. P. CAREY INC.

Quarterly Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)

(in thousands, except share and per share amounts)

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

Net income attributable to W. P. Carey

$            185,389

$            176,302

$             51,220

Adjustments:

  Depreciation and amortization of real property

133,663

135,480

119,930

  Impairment charges — real estate

79,421

40,008

4,349

  Gain on sale of real estate, net

(5,819)

(54,141)

(52,824)

  Proportionate share of adjustments to earnings from equity method investments (a) (b)

(50,133)

2,263

2,231

  Proportionate share of adjustments for noncontrolling interests (c)

(26)

(25)

(82)

Total adjustments

157,106

123,585

73,604

FFO (as defined by NAREIT) Attributable to W. P. Carey (d)

342,495

299,887

124,824

Adjustments:

  Other (gains) and losses (e)

(48,558)

(6,791)

148,768

  Straight-line and other leasing and financing adjustments

(15,459)

(24,178)

(15,374)

  Stock-based compensation

13,909

7,441

10,943

  Amortization of deferred financing costs

5,292

5,139

4,628

  Above- and below-market rent intangible lease amortization, net

3,706

2,498

5,061

  Tax expense – deferred and other

2,617

2,727

2,820

  Merger and other expenses

613

1,180

192

  Other amortization and non-cash items

548

593

579

  Proportionate share of adjustments to earnings from equity method investments (a)

303

213

309

  Proportionate share of adjustments for noncontrolling interests (b)

(22)

(52)

(80)

Total adjustments

(37,051)

(11,230)

157,846

AFFO Attributable to W. P. Carey (d)

$            305,444

$            288,657

$            282,670

Summary

FFO (as defined by NAREIT) attributable to W. P. Carey (d)

$            342,495

$            299,887

$            124,824

FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (d)

$                  1.51

$                  1.35

$                  0.57

AFFO attributable to W. P. Carey (d)

$            305,444

$            288,657

$            282,670

AFFO attributable to W. P. Carey per diluted share (d)

$                  1.34

$                  1.30

$                  1.28

Diluted weighted-average shares outstanding

227,215,203

221,618,296

220,874,935

W. P. CAREY INC.

Year-to-Date Reconciliation of Net Income to Adjusted Funds from Operations (AFFO) (Unaudited)

(in thousands, except share and per share amounts)

Six Months Ended June 30,

2026

2025

Net income attributable to W. P. Carey

$            361,691

$            177,044

Adjustments:

  Depreciation and amortization of real property

269,143

248,867

  Impairment charges — real estate

119,429

11,203

  Gain on sale of real estate, net

(59,960)

(96,601)

  Proportionate share of adjustments to earnings from equity method investments (a)

(47,870)

3,874

  Proportionate share of adjustments for noncontrolling interests (c)

(51)

(160)

Total adjustments

280,691

167,183

FFO (as defined by NAREIT) Attributable to W. P. Carey (d)

642,382

344,227

Adjustments:

  Other (gains) and losses

(55,349)

190,965

  Straight-line and other leasing and financing adjustments

(39,637)

(34,407)

  Stock-based compensation

21,350

20,091

  Amortization of deferred financing costs

10,431

9,410

  Above- and below-market rent intangible lease amortization, net

6,204

6,184

  Tax expense – deferred and other

5,344

2,038

  Merger and other expenses

1,793

748

  Other amortization and non-cash items

1,141

1,139

  Proportionate share of adjustments to earnings from equity method investments (a)

516

223

  Proportionate share of adjustments for noncontrolling interests (b)

(74)

(128)

Total adjustments

(48,281)

196,263

AFFO Attributable to W. P. Carey (d)

$            594,101

$            540,490

Summary

FFO (as defined by NAREIT) attributable to W. P. Carey (d)

$            642,382

$            344,227

FFO (as defined by NAREIT) attributable to W. P. Carey per diluted share (d)

$                  2.86

$                  1.56

AFFO attributable to W. P. Carey (d)

$            594,101

$            540,490

AFFO attributable to W. P. Carey per diluted share (d)

$                  2.65

$                  2.45

Diluted weighted-average shares outstanding

224,609,380

220,913,225

__________

(a)

Equity income, including amounts that are not typically recognized for FFO and AFFO, is recognized within Earnings from equity method investments on the consolidated statements of income. This represents adjustments to equity income to reflect FFO and AFFO on a pro rata basis.

(b)

Amount for the three months ended June 30, 2026 includes our $49.9 million proportionate share of a gain recognized on the sale of a portfolio by a jointly owned investment.

(c)

Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

(d)

FFO and AFFO are non-GAAP measures. See below for a description of FFO and AFFO.

(e)

Amount for the three months ended June 30, 2026 primarily comprises a mark-to-market unrealized gain for our investment in shares of Lineage of $41.6 million, net gains on foreign currency exchange rate movements of $10.8 million and a non-cash allowance for credit losses of $6.4 million.

Non-GAAP Financial Disclosure

Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts (NAREIT), an industry trade group, has promulgated a non-GAAP measure known as FFO, which we believe to be an appropriate supplemental measure, when used in addition to and in conjunction with results presented in accordance with GAAP, to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental non-GAAP measure. FFO is not equivalent to, nor a substitute for, net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as restated in December 2018. The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from the sale of certain real estate, impairment charges on real estate or other assets incidental to the company's main business, gains or losses on changes in control of interests in real estate and depreciation and amortization from real estate assets; and after adjustments for unconsolidated partnerships and jointly owned investments. Adjustments for unconsolidated partnerships and jointly owned investments are calculated to reflect FFO on the same basis.

We also modify the NAREIT computation of FFO to adjust GAAP net income for certain non-cash charges, such as amortization of real estate-related intangibles, deferred income tax benefits and expenses, straight-line rent and related reserves, other non-cash rent adjustments, non-cash allowance for credit losses on loans receivable and finance leases, stock-based compensation, non-cash environmental accretion expense, amortization of discounts and premiums on debt and amortization of deferred financing costs. Our assessment of our operations is focused on long-term sustainability and not on such non-cash items, which may cause short-term fluctuations in net income but have no impact on cash flows. Additionally, we exclude non-core income and expenses, such as gains or losses from extinguishment of debt, gains or losses on the mark-to-market fair value of equity securities, merger and acquisition expenses, spin-off expenses, and income and expenses associated with our captive insurance company. We also exclude realized and unrealized gains/losses on foreign currency exchange rate movements (other than those realized on the settlement of foreign currency derivatives), which are not considered fundamental attributes of our business plan and do not affect our overall long-term operating performance. We refer to our modified definition of FFO as AFFO. We exclude these items from GAAP net income to arrive at AFFO because they are not the primary drivers in our decision-making process and excluding these items provides investors with a view of our portfolio performance over time and makes it more comparable to other REITs. AFFO also reflects adjustments for unconsolidated partnerships and jointly owned investments. We use AFFO as one measure of our operating performance when we formulate corporate goals, evaluate the effectiveness of our strategies and determine executive compensation.

We believe that AFFO is a useful supplemental measure for investors to consider because we believe it will help them better assess the sustainability of our operating performance without the potentially distorting impact of these short-term fluctuations. However, there are limits on the usefulness of AFFO to investors. For example, impairment charges and unrealized foreign currency exchange rate losses that we exclude may become actual realized losses upon the ultimate disposition of the properties in the form of lower cash proceeds or other considerations. We use our FFO and AFFO measures as supplemental financial measures of operating performance. We do not use our FFO and AFFO measures as, nor should they be considered to be, alternatives to net income computed under GAAP, alternatives to net cash provided by operating activities computed under GAAP, or indicators of our ability to fund our cash needs.

SOURCE W. P. Carey Inc.

Key Takeaways XYZ's Q1 gross profit rose 27.1%, led by 38.3% growth in Cash App and 9.4% growth in Square.Square GPV climbed 13.2%, while AI commerce tools aim to help sellers reach customers through AI assistants.PayPal's Venmo TPV grew 14% year over year, while its plan targets more than $1.5B in savings. Block (XYZ - Free Report) and PayPal Holdings (PYPL - Free Report) stand out as key players in the fintech space. They continue to transform digital payments and commerce, albeit with distinct strategies: PayPal leverages its global, two-sided payments and commerce platform, whereas Block excels through the dual ecosystem of Square and Cash App.

PayPal is gaining ground through Venmo’s growth and cost savings plan, whereas Block stands out for its expanding Square merchants network and Cash App usage. Let’s examine the pros and cons of each to see which might earn a place in your portfolio.

The Case for BlockBlock continues to expand its integrated fintech platform, with its Square and Cash App ecosystems providing end-to-end solutions across payments, commerce, banking, investing and lending. In first-quarter 2026, the company reported decent performance, with net revenues increasing 4.9% year over year. Total gross profit climbed 27.1%, with Cash App rising 38.3% and Square increasing 9.4%.

Square, Block’s merchant-facing ecosystem, remains strong. In the first quarter of 2026, Square Gross Payment Volume (GPV) rose 13.2% year over year. Additionally, the company partners with more than 140 independent sales organizations to complement its direct sales and extend reach to new sellers. In July 2026, Dimassi’s Mediterranean Buffet and Honolulu Cookie Company expanded their partnerships with Square, deepening their use of the platform to scale their footprint.

Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences. The initial rollout covers U.S. food and beverage sellers using Square Online Ordering.

Cash App is the primary engine behind Block’s momentum, evolving from a simple peer-to-peer payments tool into a comprehensive financial platform for digitally native users. It now spans payments, banking, commerce and Bitcoin trading, embedding itself deeper into customers’ financial lives. Cash App continues to make transactions fast, more convenient and more personalized. In June 2026, it launched Cash App Tags, NFC-enabled physical payment accessories that let customers pay with a single tap without a phone or a card.

While Block faces headwinds, including sensitivity to macroeconomic conditions, intensifying competition and a younger-user base concentration, its diversified revenue streams, solid fundamentals and ongoing product innovation counterbalance those risks. These strengths position the company for durable growth and make it an attractive fintech investment.

The Case for PayPalPayPal is a global digital payments company that enables consumers and merchants to send, receive and manage money securely across nearly 200 markets worldwide. The company provides a wide range of solutions, including consumer payments, merchant services, peer-to-peer transfers via Venmo and Braintree (now PayPal Enterprise Payments). PayPal delivered decent first-quarter results, with revenues rising 7.2% year over year and Total Payment Volume (“TPV”) climbing 11%.

Venmo, PayPal’s money movement platform, has become a go-to wallet for younger, digitally native consumers. In the first quarter of 2026, Venmo TPV hit new records, growing sequentially to 14% year over year and marking the sixth consecutive quarter of double-digit growth. In March 2026, Venmo broadened its reach by enabling users to send and receive funds with hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.

PayPal is executing a major transformation plan aimed at saving more than $1.5 billion over the next two to three years. The company expects the first wave of savings to come from structural realignment, including removing duplication and layers from its organizational structure. A second wave is expected to result from broader AI deployment and automation initiatives. Management believes these savings will provide greater flexibility to reinvest in growth initiatives and strengthen the company’s long-term financial profile.

However, PayPal faces macroeconomic headwinds and operates in a highly competitive global payments industry. The nature of the business makes it vulnerable to foreign exchange fluctuations. The company reiterated its 2026 guidance while reporting first-quarter 2026 results, with TM$ expected to decline slightly and non-GAAP EPS projected to range from a low single-digit decline to slightly positive growth.

How Do Zacks Estimates Compare for XYZ & PYPL?The Zacks Consensus Estimate for Block’s 2026 sales and EPS implies a year-over-year increase of 8.05% and 64.56%, respectively. EPS estimates have been trending northward over the past month.

Image Source: Zacks Investment Research

Meanwhile, the consensus estimates for PayPal’s 2026 sales and EPS indicate a year-over-year rise of 3.40% and 0.19%, respectively. EPS estimates have been trending upward over the past month.

Image Source: Zacks Investment Research

Price Performance: XYZ vs. PYPLOver the past six months, shares of XYZ have outperformed PYPL and the S&P 500 composite.

Image Source: Zacks Investment Research

Valuation: XYZ vs. PYPLIn terms of forward 12-month Price/Sales (P/S), XYZ stock is trading at 1.74X, above PYPL, which is currently trading at 1.41X. XYZ is trading above its one-year median of 1.53x, while PYPL is trading below its one-year median of 1.18x.

From a valuation perspective, we note that Block shares are trading at a premium to PayPal.

Image Source: Zacks Investment Research

Conclusion: Block Remains StrongBlock and PayPal are reshaping digital payments and commerce, though they are taking different routes. PayPal’s emphasis on global wallet connectivity and cost savings program targets scale and margin improvement, but mixed macroeconomic conditions, intense competition and foreign exchange fluctuations cloud its growth outlook.

In contrast, Block maintains a robust payments ecosystem with strong historical foundations. For investors choosing now, Block stands out as the smarter, lower-risk pick because of its powerful ecosystem, profitability, long-term potential and positive trend in earnings estimates revisions.

Currently, Block sports a Zacks Rank #1 (Strong Buy), while PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Palantir Technologies (PLTR -6.10%) stock closed down 6.1% Tuesday after Cleveland Research hinted at weak commercial spending among the company's commercial partners, as StreetInsider.com reports.

But here's the thing: Not everyone agrees that Palantir is heading for disappointment. Over the past two days, two other analysts have come out in support of Palantir stock ahead of its Q2 earnings release on Aug. 3.

Image source: Palantir.

Oppenheimer loves Palantir On Monday, Oppenheimer analyst Param Singh reiterated his "outperform" rating and $200 price target on Palantir. Revenue could grow 85% year over year, says Singh, beating consensus forecasts for 80% growth.

Singh disputes Cleveland's report, arguing that Palantir's Q2 commercial revenue growth will be 135% year over year, even faster than U.S. government sales, which should grow 80% or better -- primarily due to increased defense spending.

Baird loves Palantir, too One day later, Baird analyst William Power likewise reiterated an outperform rating and $200 price target. Power agrees with Singh that both commercial and government revenue growth will be strong for Palantir. Even better, Power adds that Palantir is on track to generate potentially as much as $8 billion in positive free cash flow -- although for now, he's forecasting only a more conservative $6.7 billion.

Today's Change

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-6.10

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-8.02

Current Price

$

123.51

What it means for investors To put these numbers in context, Palantir generated just $2.1 billion in free cash flow last year. Most analysts think that number will double in 2026 (S&P Global Market Intelligence estimates $4.3 billion), then grow another 50% or so in 2027 ($6.4 billion).

On a $315 billion market capitalization, that's still a nearly 50x forward FCF valuation on the stock, which sounds like a lot. For a company growing FCF 100% one year, however, and 50% the next, it may actually be a fair price to pay for Palantir.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Intuit Inc. (“Intuit” or the “Company”) (NASDAQ: INTU) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-07086, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired Intuit securities during the Class Period, you have until September 8, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.  

[Click here for information about joining the class action]

Intuit provides financial management, payments and capital, compliance, and marketing products and services in the United States. The Company has four reportable business segments: (i) Global Business Solutions; (ii) Consumer; (iii) Credit Karma; and (iv) ProTax.  Intuit’s Consumer segment provides do-it-yourself (“DIY”) and assisted income tax preparation products and services under the “TurboTax” brand name, whereas its ProTax segment provides tax-preparation software products and electronic tax filing, payment, and related products and services.  The Company sells its products and services through direct sales channels, multichannel shop-and-buy experiences, mobile application stores, and partner and other channels.

At all relevant times, Defendants touted purportedly significant “momentum” across Intuit’s various business segments, particularly with respect to its tax-related business.  Defendants attributed this purported “momentum” to, inter alia, Intuit’s purportedly significant competitive advantages, including integration of artificial intelligence (“AI”) in its business and operations.

For example, in August 2025, Defendants provided financial guidance for Intuit’s fiscal full year (“FY”) of 2026, ended July 31, 2026, including 8% revenue growth in its TurboTax business, citing “outstanding execution across our platform” and “breakthrough adoption in assisted tax” as a result of the aforementioned purported competitive advantages.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) they had overstated Intuit’s competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (ii) in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; (iii) accordingly, Intuit’s previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on May 20, 2026, when, during pre-market hours, Reuters published an article entitled “Intuit to cut 17% of global jobs to streamline operations, memo shows”.  Citing an internal Company memorandum and email from Defendant Sasan K. Goodarzi (“Goodarzi”), Intuit’s Chairman and Chief Executive Officer, to staff earlier in the day, the article reported that “Intuit . . . is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts[.]”  The article further revealed that Intuit “is also winding down its Reno and Woodland Hills offices as ⁠part of a strategic restructuring to consolidate teams in key hubs, according to the memo.”

On this news, Intuit’s stock price fell $15.78 per share, or 3.95%, to close at $383.93 per share on May 20, 2026.

The same day, during post-market hours, Intuit issued a press release announcing its fiscal third quarter (“Q3”) 2026 results.  Therein, Defendants reported weak Q3 2026 tax season revenue, including, inter alia, TurboTax revenue that grew by only 7% year-over-year, versus consensus estimates of at least 8% revenue growth.  During the accompanying earnings call held the same day, also during post-market hours, Defendant Sandeep S. Aujla, Intuit’s Executive Vice President and Chief Financial Officer, acknowledged that, with respect to TurboTax, “we did not have the overall tax season we expected[.]”  On the same call, Defendant Goodarzi likewise stated that he was “dissatisfied with our performance”, noting “[w]e faced pressure among the most price-sensitive DIY filers earning less than $50,000 a year”, and that “[w]e lost on price.”  Defendant Goodarzi also revealed that TurboTax online paying units were expected to grow by only 2% as total Internal Revenue Service filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”  Accordingly, Defendant Goodarzi acknowledged that “we expect TurboTax to grow 7% for the full year”—down from Defendants’ prior guidance of 8% growth—and that, “[t]o reaccelerate this part of our business,” Defendants will need to “evolve our business model by delivering the right lineups and price points to meet simple filers’ needs at the low end and lean into the power of our broader Consumer platform to monetize beyond tax.”

Following these disclosures, Intuit’s stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising.  Prior results do not guarantee similar outcomes.    

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Tate & Lyle shareholders accept Ingredion’s recommended cash offerShareholder acceptance marks an important milestone toward creating a global ingredient solutions leader with enhanced innovation and formulation capabilitiesClosing expected in H2 2027, subject to the satisfaction of regulatory conditions WESTCHESTER, Ill., July 28, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR) (“Ingredion”), a leading global provider of ingredient solutions for food, beverage, pharmaceutical, personal care, and industrial applications, confirms that shareholders of Tate & Lyle PLC (“Tate & Lyle”), a global leader in mouthfeel, sweetening and fortification, have today accepted the terms of a recommended all-cash offer by Ingredion for the entire issued and to be issued share capital of Tate & Lyle, as announced on June 8, 2026.

“We are pleased that, at the recommendation of their Board of Directors, Tate & Lyle shareholders have accepted Ingredion’s all-cash offer to acquire all of the issued and outstanding shares of Tate & Lyle,” said Jim Zallie, chairman, president and CEO of Ingredion. “Today marks an important milestone toward establishing a global leader in ingredient solutions that will help create the future of food.”

The transaction is expected to deliver significant financial benefits and value creation. This includes run-rate net cost synergies of approximately $130 million, expected to be fully realized by the end of 2030, as well as adjusted EPS accretion to Ingredion shareholders in the first year following completion and an enhanced long-term growth profile and earnings potential for the combined group.

Regulatory review and clearance, as set out in the scheme document, is ongoing. As the regulatory review process progresses, Ingredion remains focused on securing the required approvals as efficiently as possible, while continuing to operate as a separate business from Tate & Lyle until completion of the transaction which is expected in the second half of 2027.

Zallie continued, “By combining the complementary capabilities of Ingredion and Tate & Lyle, we will strengthen our ability to help customers solve complex formulation challenges with an expanded innovation engine to accelerate product development and deliver the great-tasting, healthy and affordable food products that consumers want and deserve. As we work toward completing the transaction, we remain focused on serving customers with the quality, reliability and support they expect.”

For more information, please visit https://www.ingredion.com/na/en-us/legal/offer-communications.

Forward-Looking Statements

This press release contains or may contain 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. Ingredion intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements in this press release include statements regarding Ingredion’s expectations with respect to completion and benefits of Ingredion’s recommended all-cash offer for the issued and to be issued share capital of Tate & Lyle (the “Acquisition”), including statements regarding plans, objectives, intentions and expectations with respect to completion of the Acquisition and the future operations and financial performance of the combined group. Forward-looking statements also include, among others, any other statements regarding Ingredion’s prospects and Ingredion’s future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing.

These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.”

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond Ingredion’s control. Although Ingredion believes its expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that Ingredion’s expectations will prove correct.

The following factors relating to the Acquisition, among others, could cause actual results to differ materially from those expressed in or implied by Ingredion’s forward-looking statements: failure of the Acquisition to be completed when expected or at all because of the inability to satisfy material antitrust or other conditions or for other reasons; the risk that the expected benefits of the Acquisition may not be fully realized or may take longer to realize that anticipated, including as a result of the risks and uncertainties discussed below; failure to integrate effectively the businesses of Ingredion and Tate & Lyle or to manage effectively the expanded operations of the combined group; and the incurrence of substantial expenses and indebtedness by Ingredion and the combined group to complete the Acquisition and to operate the enterprise after completion.

Additional risks and uncertainties that could cause actual results and developments to differ materially from the expectations expressed in or implied by Ingredion’s forward-looking statements include, among others: changes in consumer practices, preferences, price sensitivity, behaviors, demand and perceptions; the impact of geopolitical developments, tensions, threats or conflicts on the availability and prices of raw materials and energy supplies, supply chains and foreign exchange and interest rates; the impact of global business and economic conditions on demand for Ingredion’s products or Ingredion’s access to global credit and equity markets; Ingredion’s reliance on certain industries for a significant portion of Ingredion’s sales; operating difficulties at Ingredion’s manufacturing facilities and liabilities relating to product safety and quality; Ingredion’s ability to keep pace with technological developments in research and development and continue to offer innovative products; competitive pressures that may adversely affect Ingredion’s market share, revenue and profitability; market volatility that may adversely affect Ingredion’s ability to pass through potential increases in the cost of corn and other raw materials to customers, to purchase quantities of corn and other raw materials at prices sufficient to sustain or increase Ingredion’s profitability, or to supply product quantities and meet shipment delivery requirements that Ingredion’s customers demand; the impact on inputs to Ingredion’s procurement, production processes and delivery channels, such as raw material, energy, and freight and logistics, of price fluctuations, supply chain interruptions, tariffs, duties, and shortages; Ingredion’s ability to contain costs, manage working capital, and achieve budgets, including completion of planned maintenance and investment projects on time and on budget; global climate change and legal, regulatory, or market measures to address climate change; Ingredion’s ability to identify and complete acquisitions, divestitures, or strategic alliances on favorable terms or achieve anticipated synergies; the economic, political and other risks inherent in conducting operations in foreign countries and with foreign currencies; Ingredion’s ability to maintain satisfactory labor relations; Ingredion’s ability to attract, develop, retain, motivate and maintain good relationships with its workforce, including key personnel; the impact of legal and regulatory proceedings; the risks associated with pandemics; the impact of any impairment charges on intangible assets and goodwill; global and regional economic policies and changes to existing laws and regulations; changes in Ingredion’s tax rates or exposure to additional income tax liabilities; increases in interest rates that could increase Ingredion’s borrowing costs; risks affecting Ingredion’s ability to raise funds at reasonable rates and other factors affecting Ingredion’s access to sufficient funds for future growth and expansion; risks relating to the use of artificial intelligence and other advanced technologies, and Ingredion’s reliance on third party technology providers; interruptions, security incidents, or failures with respect to information technology systems, processes, and sites; risks affecting the continuation of Ingredion’s dividend policy; and Ingredion’s ability to maintain effective internal control over financial reporting.

Ingredion’s forward-looking statements speak only as of the date on which they are made, and Ingredion does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If Ingredion does update or correct one or more of these statements, investors and others should not conclude that Ingredion will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in Ingredion’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Ingredion’s subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

About Ingredion Incorporated

Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, Ingredion turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing, pharmaceutical and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and more than 11,000 employees, Ingredion co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Ingredion news.

Contacts:

Media Relations:

In the U.S.:
Jayne Rosefield / Dave Carlson
+1 312 800 8120

In the U.K.:
Charles Pretzlik / Ed Brown / David Blackburn
+44 20 7404 5959

[email protected]

Investor Relations:

Noah Weiss, 773-896-5242

Key Takeaways Alexandria's Q2 results may show declines in revenues and adjusted FFO per share.Lease expirations and slow re-leasing could push occupancy down to an estimated 88.9%.ARE's revenues are expected to fall 14.8%, while adjusted FFO per share may drop 29.2%. Alexandria Real Estate Equities Inc. (ARE - Free Report) is scheduled to release its second-quarter 2026 results on Aug. 3, after the closing bell. Its quarterly results are likely to reflect a decline in revenues and funds from operations (FFO) per share.

In the last reported quarter, this Pasadena, CA-based life science real estate investment trust (REIT), focusing on collaborative life science, agtech and technology campuses in AAA innovation cluster locations, met the Zacks Consensus Estimate in terms of adjusted FFO per share. ARE’s performance in the quarter reflected lower occupancy, negative rental rates and higher interest expenses.

Alexandria has a decent surprise history. Over the preceding four quarters, its adjusted FFO per share surpassed the Zacks Consensus Estimate on two occasions, missed once and met in the remaining period, with the average miss of 0.42%. This is depicted in the graph below:

Factors at Play & Projections for AREARE owns a premium portfolio of Class A/A+ properties in the high-barrier-to-entry markets of the United States. This strategically located property base supports stable long-term demand from high-growth tenants. However, the company’s vast development pipeline exposes it to the risk of lease-up concerns.

The slow re-leasing of expiring spaces in its operating portfolio is likely to have pressured occupancy levels in the quarter under consideration, affecting its revenue growth. According to the first-quarter 2026 earnings call transcript, management had an additional 747,000 square feet of key lease expiries expected to go vacant in 2026, with about 45% of that expected expiring in the to-be-reported quarter, which is likely to weigh on occupancy for the second quarter of 2026.

Moreover, Alexandria’s same-property revenues are likely to have been adversely impacted owing to pressure on occupancy. For the second quarter of 2026, our estimate indicates a 9.3% decrease in same-store revenues and a 18% decline in same-store NOI.

The Zacks Consensus Estimate for Alexandria’s quarterly revenues currently stands at $649 million, suggesting a decrease of 14.8% from the prior-year period’s reported figure.

Alexandria’s activities in the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly adjusted FFO per share has increased a cent to $1.65 over the past month. However, the figure suggests a 29.2% decrease from the year-ago quarter’s tally.

What Our Quantitative Model Predicts for AREOur proven model does not conclusively predict a surprise in terms of FFO per share for Alexandria 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 FFO beat, which is not the case here.

Alexandria currently has an Earnings ESP of +0.55% and has a Zacks Rank #5 (Strong Sell). 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, 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.

EINDHOVEN, The Netherlands, July 28, 2026 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, which ended June 28, 2026. “NXP delivered second-quarter revenue of $3.5 billion, up 19 percent year-on-year and 10 percent sequentially, with growth across all end markets and all regions. This performance reflects the strength of our company-specific growth drivers, particularly in Software-Defined Vehicles and Physical AI, with Data Center emerging as an additional growth engine. Our strong first-half results and third-quarter guidance reinforce our confidence in achieving our financial commitments to drive long-term shareholder value. Underlying these results, AI is moving from the cloud into the physical world — into vehicles, factories, and robots — and it lands directly in the markets where NXP has leadership positions. NXP's portfolio of processing, connectivity, and security solutions, positions us to enable next-generation edge intelligence for our customers,” said Rafael Sotomayor, NXP President and Chief Executive Officer.

Key Highlights for the Second Quarter 2026:

Revenue was $3.50 billion, up 19 percent year-on-year;GAAP gross margin was 57.3 percent, GAAP operating margin was 30.6 percent and GAAP diluted Net Income per Share was $3.02;Non-GAAP gross margin was 58.0 percent, non-GAAP operating margin was 35.1 percent, and non-GAAP diluted Net Income per Share was $3.61;Cash flow from operations was $860 million, with net capex investments of $69 million, resulting in non-GAAP free cash flow of $791 million or 22.6 percent of revenue;Capital return during the quarter was $360 million, representing 45.5 percent of second quarter non-GAAP free cash flow. Dividends paid during the quarter were $256 million, and share buybacks were $104 million. After the end of the second quarter, between June 29, 2026, and July 24, 2026, NXP executed via a 10b5-1 program additional share repurchases totaling $32 million; andOn April 20, 2026, NXP repaid the $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due June 18, 2026, at par using available cash. Summary of Reported Second Quarter 2026 ($ millions, unaudited) (1)

 Q2 2026Q1 2026Q2 2025Q - QY - YTotal Revenue$3,496 $3,181 $2,926 10%
19%GAAP Gross Profit$2,002 $1,788 $1,562 12%
28%Gross Profit Adjustments(i)$(26)$(27)$(90)  Non-GAAP Gross Profit$2,028 $1,815 $1,652 12%23%GAAP Gross Margin 57.3% 56.2% 53.4%  Non-GAAP Gross Margin 58.0% 57.1% 56.5%  GAAP Operating Income (Loss)$1,071 $1,505 $687 -29%56%Operating Income Adjustments(i)$(157)$453 $(248)  Non-GAAP Operating Income$1,228 $1,052 $935 17%31%GAAP Operating Margin 30.6% 47.3% 23.5%  Non-GAAP Operating Margin 35.1% 33.1% 32.0%  GAAP Net Income (Loss) attributable to Stockholders$767 $1,122 $445 -32%72%Net Income Adjustments(i)$(151)$348 $(245)  Non-GAAP Net Income (Loss) Attributable to Stockholders$918 $774 $690 19%33%GAAP diluted Net Income (Loss) per Share(ii)$3.02 $4.43 $1.75 -32%72%Non-GAAP diluted Net Income (Loss) per Share(ii)$3.61 $3.05 $2.72 18%33% Additional information         Q2 2026 Q1 2026 Q2 2025 Q - QY - YAutomotive$1,938 $1,782 $1,729 9%12%Industrial & IoT$755 $628 $546 20%38%Mobile$351 $391 $331 -10%6%Comm. Infra. & Other$452 $380 $320 19%41%DIO 156  165  158   DPO 60  59  60   DSO 33  34  33   Cash Conversion Cycle 129  140  131   Channel Inventory (weeks) 11  11  9   Gross Financial Leverage(iii)2.1x 2.4x 2.4x   Net Financial Leverage(iv)1.5x 1.7x 1.8x             Additional Information for the second quarter 2026: For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA. Guidance for the Third Quarter 2026: ($ millions, except Per Share data) (1)

 GAAP Reconciliation non-GAAP Low Mid High   Low Mid HighTotal Revenue$3,650 $3,750 $3,850   $3,650 $3,750 $3,850Q-Q4% 7% 10%   4% 7% 10%Y-Y15% 18% 21%   15% 18% 21%Gross Profit$2,093 $2,171 $2,248 $(24) $2,117 $2,195 $2,272Gross Margin57.3% 57.9% 58.4%   58.0% 58.5% 59.0%Operating Income (loss)$1,137 $1,205 $1,272 $(177) $1,314 $1,382 $1,449Operating Margin31.2% 32.1% 33.0%   36.0% 36.9% 37.6%Financial Income (expense)$(95) $(95) $(95) $(10) $(85) $(85) $(85)Tax rate19.2%-20.2%   17.5%-18.5%Equity-accounted investees$(6) $(6) $(6) $(1) $(5) $(5) $(5)Non-controlling interests$(15) $(15) $(15)   $(15) $(15) $(15)Shares - diluted254.0 254.0 254.0   254.0 254.0 254.0Earnings Per Share - diluted$3.21 $3.43 $3.64   $3.89 $4.11 $4.32
Note (1) Additional Information:

GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(5) million; Share-based Compensation, $(14) million; Other Incidentals, $(5) million;GAAP Operating Income (loss) is expected to include PPA effects, $(36) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(26) million;GAAP Financial Income (expense) is expected to include Other financial expense $(10) million;GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(1) million;GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.
NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

Non-GAAP Financial Measures

In managing NXP'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, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring 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 our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they 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 core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP's underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.

These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP's operations.

In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Other income, (vi) Operating income (loss), (vii) Operating margin, (viii) Financial Income (expense), (ix) Income tax benefit (provision), (x) Results relating to foundry equity-accounted investees, (xi) Net income (loss) attributable to stockholders, (xii) Earnings per Share - Diluted, (xiii) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xiv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.

The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).

Conference Call and Webcast Information

The company will host a conference call with the financial community on Tuesday, July 28, 2026 at 4:30 p.m. U.S. Eastern Daylight Time (EDT) to review the second quarter 2026 results in detail.

Interested parties may preregister to obtain a user-specific access code for the call here.

The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.

About NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com.

Forward-looking Statements

This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which our products are incorporated; recent changes in global trade policy including tariffs and related trade actions announced by the U.S., China and other countries, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in our customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, and the continued hostilities and armed conflict in the Middle East including the ongoing military conflict involving Iran and the resulting disruption to energy markets, industrial gas supplies and global logistical routes, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance our debt at or before maturity to meet our debt service, research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

For further information, please contact:

Investors: Media:Jeff PalmerPaige [email protected]@nxp.com+1 408 205 0687+1 817 975 0602 NXP-CORP

NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)

($ in millions except share data)Three months ended June 28,
2026 March 29,
2026 June 29,
2025      Revenue$3,496  $3,181  $2,926 Cost of revenue (1,494)  (1,393)  (1,364)Gross profit 2,002   1,788   1,562 Research and development (604)  (588)  (573)Selling, general and administrative (291)  (284)  (278)Amortization of acquisition-related intangible assets (31)  (32)  (25)Total operating expenses (926)  (904)  (876)Other income (expense) (5)  621   1 Operating income (loss) 1,071   1,505   687 Financial income (expense):     Other financial income (expense) (97)  (96)  (86)Income (loss) before income taxes 974   1,409   601 Benefit (provision) for income taxes (189)  (272)  (116)Results relating to equity-accounted investees (3)  (4)  (28)Net income (loss) 782   1,133   457 Less: Net income (loss) attributable to non-controlling interests 15   11   12 Net income (loss) attributable to stockholders 767   1,122   445       Earnings per share data:     Net income (loss) per common share attributable to stockholders in $Basic$3.04  $4.44  $1.76 Diluted$3.02  $4.43  $1.75       Weighted average number of shares of common stock outstanding during the period (in thousands):Basic 252,415   252,715   252,418 Diluted 254,021   253,525   253,844        NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)

 ($ in millions)As of  June 28,
2026 March 29,
2026 June 29,
2025ASSETS     Current assets:      Cash and cash equivalents$3,222 $3,708 $3,170 Accounts receivable, net 1,274  1,186  1,071 Assets held for sale 92  91  294 Inventories, net 2,557  2,523  2,361 Other current assets 539  644  790Total current assets 7,684  8,152  7,686       Non-current assets:      Deferred tax assets 1,242  1,238  1,306 Other non-current assets 3,195  3,037  1,909 Property, plant and equipment, net 2,835  2,901  3,130 Identified intangible assets, net 1,441  1,505  1,121 Goodwill 10,268  10,280  10,098Total non-current assets 18,981  18,961  17,564       Total assets 26,665  27,113  25,250       LIABILITIES AND EQUITY     Current liabilities:      Accounts payable 984  904  892 Restructuring liabilities-current 111  133  65 Other current liabilities 1,672  1,851  1,471 Short-term debt 999  750  1,999Total current liabilities 3,766  3,638  4,427       Non-current liabilities:      Long-term debt 9,977  10,974  9,479 Restructuring liabilities 65  76  60 Other non-current liabilities 1,096  1,151  1,348Total non-current liabilities 11,138  12,201  10,887        Non-controlling interests 362  347  367 Stockholders’ equity 11,399  10,927  9,569Total equity 11,761  11,274  9,936      Total liabilities and equity 26,665  27,113  25,250 NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)

($ in millions)Three months ended June 28,
2026 March 29,
2026 June 29,
2025Cash flows from operating activities:     Net income (loss)$782  $1,133  $457 Cash flows provided by (used for) operating activities:     Depreciation and amortization 184   179   207 Share-based compensation 105   109   117 Amortization of discount (premium) on debt, net —   1   — Amortization of debt issuance costs 2   2   2 Net (gain) loss on sale of assets —   (627)  (6)Results relating to equity-accounted investees 3   4   28 (Gain) loss on equity securities, net 1   (1)  (3)Deferred tax expense (benefit) (13)  (28)  3 Changes in operating assets and liabilities:     (Increase) decrease in receivables and other current assets 14   (115)  (106)(Increase) decrease in inventories (34)  87   (90)Increase (decrease) in accounts payable and other liabilities (136)  231   33 (Increase) decrease in other non-current assets (48)  (182)  131 Exchange differences 3   4   9 Other items (3)  (4)  (3)Net cash provided by (used for) operating activities 860   793   779       Cash flows from investing activities:     Purchase of identified intangible assets (37)  (42)  (37)Capital expenditures on property, plant and equipment (69)  (79)  (83)Purchase of interests in businesses, net of cash acquired —   —   (679)Proceeds from sale of interests in businesses, net of cash divested —   878   — Purchase of investments (132)  (249)  (93)Proceeds from the sale of investments 1   —   — Net cash provided by (used for) investing activities (237)  508   (892)      Cash flows from financing activities:     Repurchase of long-term debt (750)  (501)  (500)Cash paid for debt issuance costs —   (3)  — Proceeds from the issuance of commercial paper notes —   —   1,565 Repayment of commercial paper notes —   —   (1,315)Dividends paid to non-controlling interests —   (29)  — Dividends paid to common stockholders (256)  (256)  (257)Proceeds from issuance of common stock through stock plans 1   36   2 Purchase of treasury shares and restricted stock unit withholdings (104)  (102)  (204)Other, net —   (1)  — Net cash provided by (used for) financing activities (1,109)  (856)  (709)      Effect of changes in exchange rates on cash positions —   (4)  4 Increase (decrease) in cash and cash equivalents (486)  441   (818)Cash and cash equivalents at beginning of period 3,708   3,267   3,988 Cash and cash equivalents at end of period 3,222   3,708   3,170              NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)

($ in millions except share data)Three months ended June 28,
2026 March 29,
2026 June 29,
2025GAAP Gross Profit$2,002  $1,788  $1,562 PPA Effects (5)  (6)  (7)Restructuring —   1   (61)Share-based compensation (12)  (13)  (14)Other incidentals (9)  (9)  (8)Non-GAAP Gross Profit$2,028  $1,815  $1,652       GAAP Research and development$(604) $(588) $(573)Restructuring 4   (2)  (3)Share-based compensation (54)  (57)  (58)Other incidentals (4)  (11)  (7)Non-GAAP Research and development$(550) $(518) $(505)      GAAP Selling, general and administrative$(291) $(284) $(278)Restructuring 4   (1)  (3)Share-based compensation (39)  (39)  (45)Other incidentals (12)  (4)  (15)Non-GAAP Selling, general and administrative$(244) $(240) $(215)      GAAP Other income (expense)$(5) $621  $1 Other incidentals 1   626   (2)Non-GAAP Other income (expense)$(6) $(5) $3       GAAP Operating income (loss)$1,071  $1,505  $687 PPA effects (36)  (38)  (32)Restructuring 8   (2)  (67)Share-based compensation (105)  (109)  (117)Other incidentals (24)  602   (32)Non-GAAP Operating income (loss)$1,228  $1,052  $935       GAAP Financial income (expense)$(97) $(96) $(86)Foreign exchange gain (loss) (5)  (4)  (7)Other financial income (expense) (5)  (2)  6 Non-GAAP Financial income (expense)$(87) $(90) $(85)      GAAP Income tax benefit (provision)$(189) $(272) $(116)Income tax effect 16   (99)  32 Non-GAAP Income tax benefit (provision)$(205) $(173) $(148)            GAAP Results relating to equity-accounted investees$(3) $(4) $(28)Results relating to equity-accounted investees, excluding Foundry investees1 —   —   (28)Non-GAAP Results relating to equity-accounted investees$(3) $(4) $—       GAAP Net income (loss)$782  $1,133  $457 Less: Net income (loss) attributable to non-controlling interest 15   11   12 GAAP Net income (loss) attributable to stockholders$767  $1,122  $445       GAAP Net income (loss) attributable to stockholders$767  $1,122  $445 PPA Effects (36)  (38)  (32)Restructuring 8   (2)  (67)Share-based compensation (105)  (109)  (117)Other incidentals (24)  602   (32)Other adjustments:     Adjustments to financial income (expense) (10)  (6)  (1)Income tax effect 16   (99)  32 Results relating to equity-accounted investees, excluding Foundry investees1 —   —   (28)Non-GAAP Net income (loss) attributable to stockholders$918  $774  $690       GAAP net income (loss) per common share attributable to stockholders - diluted$3.02  $4.43  $1.75 PPA Effects (0.14)  (0.15)  (0.12)Restructuring 0.03   (0.01)  (0.27)Share-based compensation (0.41)  (0.43)  (0.46)Other incidentals (0.09)  2.38   (0.13)Other adjustments:     Adjustments to financial income (expense) (0.04)  (0.02)  — Income tax effect 0.06   (0.39)  0.12 Results relating to equity-accounted investees, excluding Foundry investees1 —   —   (0.11)Non-GAAP net income (loss) per common share attributable to stockholders - diluted$3.61  $3.05  $2.72       Additional Information:      We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees. NXP Semiconductors
Table 5: Adjusted EBITDA and Free Cash Flow (unaudited)

($ in millions)Three months ended June 28,
2026 March 29,
2026 June 29,
2025GAAP Net income (loss)$782  $1,133  $457 Reconciling items to EBITDA (Non-GAAP)     Financial (income) expense 97   96   86 (Benefit) provision for income taxes 189   272   116 Depreciation and impairment 114   109   143 Amortization 70   70   64 EBITDA (Non-GAAP)$1,252  $1,680  $866 Reconciling items to adjusted EBITDA (Non-GAAP)     Results of equity-accounted investees, excluding Foundry investees1 —   —   28 Restructuring (8)  2   67 Share-based compensation 105   109   117 Other incidental items2 20   (605)  25 Adjusted EBITDA (Non-GAAP)$1,369  $1,186  $1,103 Trailing twelve month adjusted EBITDA (Non-GAAP)$5,106  $4,840  $4,745       Additional Information:      Refer to Table 4 above for further information regarding the results relating to equity-accounted investees.Excluding depreciation and impairment or amortization relating to:
  – other incidental items 4   3   7                   ($ in millions)Three months ended June 28,
2026 March 29,
2026 June 29,
2025Net cash provided by (used for) operating activities$860  $793  $779 Net capital expenditures on property, plant and equipment (69)  (79)  (83)Non-GAAP free cash flow$791  $714  $696 Trailing twelve month non-GAAP free cash flow$2,807  $2,712  $2,008 Trailing twelve month non-GAAP free cash flow
as percent of Revenue 21%  21%  17%      

Key Takeaways Cameco is expected to report lower Q2 revenues and earnings year over year when it reports on July 31.Stronger year-over-year uranium pricing to partly offset the impact of lower uranium sales volumes in Q2.Cameco's long-term contracts support growth, but premium valuation may favor waiting before buying. Cameco Corporation (CCJ - Free Report) is scheduled to report second-quarter 2026 results on July 31, before the opening bell.

The Zacks Consensus Estimate for Cameco’s second-quarter revenues is currently pegged at $534.4 million, implying a 15.7% year-over-year decline. The estimate for earnings per share has remained unchanged at 26 cents over the past 60 days. It suggests a 49% decline from the prior-year quarter.

Image Source: Zacks Investment Research

Cameco’s Earnings Surprise HistoryOver the trailing four quarters, Cameco’s earnings beat the Zacks Consensus Estimate thrice but missed once. CCJ has an average trailing four-quarter earnings surprise of 2.01%. The trend is shown in the chart below.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for CCJ StockOur proven model does not conclusively predict an earnings beat for Cameco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: The Earnings ESP for Cameco is 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: CCJ currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped Cameco’s Q2 PerformanceCCJ holds a 69.8% stake in the McArthur River mine and 83% in the Key Lake mill. It also held a 54.5% interest in Cigar Lake. In July, Cameco raised its stake in the Cigar Lake joint venture to 57.418%.

During May, the company temporarily suspended operations at the McArthur River mine and Key Lake mill after severe flooding in northern Saskatchewan caused a partial collapse of the Smoothstone River Bridge, a key transportation route. However, Cameco quickly established an alternate logistics route, enabling both facilities to resume full production within a short period. The disruption did not alter the company's production guidance for 2026, which stands at 19.5-21.5 million pounds. The midpoint indicates a roughly 2% year-over-year decline.  The guidance includes 9.5-10 million pounds from Cigar Lake and 10.0-11.5 million pounds from McArthur River. We expect the Cigar Lake production outlook to be revised following the ownership increase, though this should not have any bearing on the second-quarter results.

The company has guided uranium deliveries of 29-32 million pounds for 2026, down from 33 million pounds in 2025. Based on the full-year guidance, Cameco would need to produce roughly 4.8 million pounds and deliver about 7.6 million pounds of uranium, on average, in each of the remaining quarters. Accordingly, we expect second-quarter uranium production to be modestly higher than the 4.6 million pounds produced in the year-ago quarter, while sales volumes are likely to be below the 8.7 million pounds delivered in the second quarter of 2025.

Uranium prices remained supportive during the quarter, averaging approximately $85.18 per pound, up 17% from $72.59 a year earlier. Consequently, stronger realized pricing is likely to have partly offset the impact of lower uranium sales volumes, supporting uranium segment revenues.

In the Fuel Services segment, Cameco expects 2026 production and deliveries of 13-14 million kgU compared with 13.1 million kgU delivered in 2025. During the first quarter, production declined 15% year over year to 3.3 million kgU, while sales volumes increased 17% to 2.8 million kgU.

Based on full-year guidance, the company would need to produce approximately 3.4 million kgU and deliver around 3.6 million kgU, on average, in each of the remaining quarters. We therefore expect second-quarter fuel services production to be slightly above the 3.2 million kgU produced in the year-ago quarter but deliveries to remain below the 4.4 million kgU sold in the second quarter of 2025. Lower fuel services volumes, along with softer pricing, are expected to have weighed on segment revenues. 

Overall, Cameco's second-quarter revenues are likely to have declined modestly, as stronger uranium revenues were offset by weaker performance in the Fuel Services business.

On the cost front, cost of sales is expected to have increased year over year. However, the company's ongoing debt reduction efforts are likely to have lowered interest expenses, providing some offset. Cameco is also expected to have continued incurring care-and-maintenance costs related to its curtailed tier-two assets. Overall, lower revenues combined with elevated operating costs are expected to have resulted in weaker earnings for the quarter.

CCJ’s Price Performance & ValuationCameco shares have declined 21.8% in the past three months compared with the industry’s 12.3% fall. Meanwhile, the company’s peers Energy Fuels (UUUU - Free Report) and Uranium Energy (UEC - Free Report) have fallen 40.2% and 26.1%, respectively, in the same timeframe. 

Image Source: Zacks Investment Research

Cameco stock is trading at a forward price-to-sales ratio of 15.18 compared with the industry’s 5.05. The company is, however, cheaper than peer Energy Fuels’ and Uranium Energy’s price-to-sales ratios of 15.41 and 54.01, respectively.

Image Source: Zacks Investment Research

Investment Thesis on CamecoCameco is well-positioned to benefit from the long-term growth in nuclear energy, thanks to its high-quality, low-cost asset base and its strategic involvement across the entire nuclear fuel supply chain. The company is also investing to expand production by extending Cigar Lake’s mine life to 2036 and ramping up output at McArthur River and Key Lake toward their licensed annual capacity of 25 million pounds (100% basis). Despite softer near-term guidance, Cameco has strong earnings visibility through long-term contracts. As of March 31, 2026, Cameco had secured contracts requiring average annual uranium deliveries of more than 28 million pounds per year over the next five years. The company also has sale contracts for roughly 83 million kilograms of UF6 conversion to 33 customers. 

Should You Buy CCJ Stock Now?Cameco's strong portfolio of long-term contracts and strategic presence across the nuclear fuel cycle continue to support its attractive long-term growth prospects. The company is expected to report year-over-year declines in second-quarter revenues and earnings, and an earnings beat appears unlikely. Regardless of the near-term results, existing shareholders should consider holding the stock, given its solid long-term fundamentals and favorable industry outlook. However, with the stock trading at a premium valuation, prospective investors may be better served waiting for a more attractive entry point before initiating a position.

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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Stargate Finance, the cross-chain liquidity protocol built on LayerZero, is plugging into NEAR Intents to power select cross-chain swaps and routes. The integration connects Stargate’s unified liquidity pools with NEAR’s solver network, which lets users specify what they want (say, swapping USDC on Arbitrum for USDT on Optimism) without having to manually chart the path to get there.

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Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Franklin Electric Co., Inc. (FELE) Q2 2026 Earnings Call July 28, 2026 10:00 AM EDT

Company Participants

Dean Cantrell - Director of Investor Relations
Joseph Ruzynski - CEO & Director
Jennifer Wolfenbarger - VP & CFO

Conference Call Participants

Matt Summerville - D.A. Davidson & Co., Research Division
Ryan Connors - Northcoast Research Partners, LLC
Bryan Blair - Oppenheimer & Co. Inc., Research Division
Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division

Presentation

Operator

Good day, and welcome to the Franklin Electric Reports Second Quarter 2026 Sales and Earnings Conference Call.

[Operator Instructions] Please be advised that today's conference is being recorded.

It is now my pleasure to introduce Dean Cantrell, Director of Investor Relations.

Dean Cantrell
Director of Investor Relations

Thank you, Andrew, and welcome, everyone, to Franklin Electric's Second Quarter 2026 Earnings Conference Call. Joining me today is Jennifer Wolfenbarger, our Chief Financial Officer; and Joe Ruzynski, our Chief Executive Officer.

On today's call, Joe will review our second quarter business highlights. Jennifer will provide additional details on our financial performance, and then Joe will make some additional comments highlighting our Water Systems segment. We will then take your questions. A replay link of the webcast will be archived for 7 days, and the transcript and audio version of this call will be available on our website tomorrow.

Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which could cause actual results to differ materially from such forward-looking statements. A discussion of these factors may be found in the company's annual report on Form 10-K and today's earnings release.

During this call, we will present both

HomeEarnings AnalysisTech 

SummarySuper Micro Computer, Inc. proves its structurally robust, AI-driven growth prospects through the outsized, new orders of $60B in the preliminary FQ4 '26 results.Despite this, SMCI faces lumpy top/bottom-line performance from the customers' delayed data center buildouts and capex/FCF risks from the insatiable compute demand.SMCI stock trades at discounted P/E of 10.61x, with it reflecting the governance headwinds across the smuggling case and the financial reporting weakness.Elevated short interest, equity dilution risks, insider selling, and uncertain order conversion timing reinforce the mixed risk/reward prospects entering FQ4'26 earnings call.SMCI remains a Hold here, with it remaining a potential value trap, pending further governance clarity and improved credibility. spawns/iStock via Getty Images

I previously rated Super Micro Computer, Inc. (SMCI) as a Hold in November 2025, given the potential value trap status and the mixed financial reporting/sales performance.

In this article, I shall discuss why SMCI remains a

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

July 28, 2026 16:01 ET  | Source: EXL

2026 Second Quarter Revenue of $594.8 Million, up 15.6% year-over-year

Q2 Diluted EPS (GAAP) of $0.42, up 4.9% from $0.40 in Q2 of 2025

Q2 Adjusted Diluted EPS (Non-GAAP) (1) of $0.59, up 22.3% from $0.49 in Q2 of 2025

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) -- ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended June 30, 2026.

Chairman and Chief Executive Officer Rohit Kapoor said, “We entered 2026 with strong momentum that accelerated through the first half, delivering second quarter revenue growth of 16% year-on-year and adjusted diluted EPS of 22% year-on-year. Our sustained double-digit growth reflects continued execution of our data and AI strategy and our differentiated position which helps clients effectively adopt AI across the enterprise. We have very good visibility into the balance of the year and look forward to a solid finish to 2026.”

Chief Financial Officer Maurizio Nicolelli said, “Our strong second quarter performance, sustained growth momentum and healthy pipeline give us the confidence to increase our organic full-year revenue growth guidance to 13% to 14%. In addition, we are also updating our guidance to include $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026. We now expect full-year 2026 total revenue to be in the range of $2.390 billion to $2.415 billion, up from our prior guidance of $2.30 billion to $2.33 billion, reflecting 14% to 16% year-over-year growth on a reported basis. We now expect adjusted diluted earnings per share of $2.25 to $2.29, a 16% to 18% increase over 2025, up from our prior guidance of $2.18 to $2.23.”

__________________________________________________________

(1)Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.
Financial Highlights: Second Quarter 2026

Revenue for the quarter ended June 30, 2026, increased to $594.8 million compared to $514.5 million for the second quarter of 2025, an increase of 15.6% on a reported basis and 15.9% on a constant currency basis. Revenue increased by 4.3% sequentially on a reported basis and 4.4% on a constant currency basis, from the first quarter of 2026.   Revenue Gross Margin  Three months ended  Three months ended Reportable Segments June 30,
2026 June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2025 March 31,
2026  (dollars in millions)    Insurance $197.8 $172.2 $194.0 34.6 % 34.8 % 37.7 %Healthcare and Life Sciences  158.0  129.5  151.9 46.9 % 43.5 % 45.3 %Banking, Capital Markets and Diversified Industries  133.9  121.1  127.4 34.8 % 37.8 % 36.9 %International Growth Markets  105.1  91.7  97.1 35.1 % 35.1 % 34.1 %Total $594.8 $514.5 $570.4 38.0 % 37.7 % 38.9 %                    Operating income margin for the quarter ended June 30, 2026 was 14.7%, compared to 15.8% for the second quarter of 2025 and 16.1% for the first quarter of 2026. Adjusted operating income margin for the quarter ended June 30, 2026 was 19.7%, compared to 19.6% for the second quarter of 2025 and 20.5% for the first quarter of 2026.Diluted earnings per share for the quarter ended June 30, 2026 was $0.42, compared to $0.40 for the second quarter of 2025 and $0.43 for the first quarter of 2026. Adjusted diluted earnings per share for the quarter ended June 30, 2026 was $0.59, compared to $0.49 for the second quarter of 2025 and $0.58 for the first quarter of 2026. Business Highlights: Second Quarter 2026

Won 17 new clients in the second quarter of 2026.EXL agreed to acquire iMerit, advancing its leadership in enterprise AI by adding foundation model expertise and technology.EXL achieved gold status with Databricks and deepened its collaboration to help enterprises build trusted data foundations for AI at scale.EXL became an OpenAI Services Partner, expanding its AI delivery capabilities through OpenAI’s enterprise capabilities.EXL joined the Claude Partner Network, further strengthening its AI ecosystem with Anthropic’s frontier AI models.EXL achieved Snowflake Premier Partner status, reinforcing its commitment to delivering strategic data and AI solutions for clients.EXL integrated with NVIDIA Transaction Foundation Model, bringing next-generation fraud detection and risk intelligence to financial institutions.EXL named a Horizon 3 - Market Leader in the HFS Horizons Data Modernization and AI, 2026 report for EXL’s ability to operationalize AI through semantic data foundations, agentic workflow orchestration, and proven enterprise-scale transformation outcomes.Appointed Bhupender Singh as president and head of international growth markets. 2026 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 95.0, U.K. pound sterling to U.S. dollar exchange rate of 1.33, U.S. dollar to the Philippine peso exchange rate of 61.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2026:

Revenue of $2.390 billion to $2.415 billion, representing an increase of 14% to 16% on a reported basis, which includes $28.0 million to $32.0 million of anticipated revenue from the iMerit acquisition, which is expected to close on July 31, 2026, and 13% to 14% on an organic constant currency basis from 2025.Adjusted diluted earnings per share of $2.25 to $2.29, representing an increase of 16% to 18% from 2025. Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, July 29, 2026, at 10:00 A.M. ET to discuss the Company’s second quarter operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a global data and artificial intelligence ("AI") company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare and life sciences, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have over 68,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include the satisfaction or waiver of applicable closing conditions to the consummation of the iMerit acquisition and the expected timing thereof, our ability to successfully integrate announced or future strategic acquisitions or achieve anticipated synergies, our ability to maintain and grow client demand, risks related to the use of AI technology, impact on client demands by our selling cycles, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, and risks related to the international nature of our business and other factors are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

 EXLSERVICE HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)
  Three months ended June 30, Six months ended June 30, 2026
 2025
 2026
 2025
Revenues, net$594,763  $514,460  $1,165,114  $1,015,479 Cost of revenues(1) 368,800   320,272   717,070   627,977 Gross profit(1) 225,963   194,188   448,044   387,502 Operating expenses:       General and administrative expenses 74,436   59,549   143,487   118,966 Selling and marketing expenses 49,628   39,446   96,829   81,371 Depreciation and amortization expense 14,604   14,055   28,607   27,612 Total operating expenses 138,668   113,050   268,923   227,949 Income from operations 87,295   81,138   179,121   159,553 Foreign exchange gain, net 1,609   2,211   2,744   3,403 Interest expense (5,068)  (4,282)  (9,019)  (8,426)Other income, net 130   5,671   2,521   10,374 Income before income tax expense and earnings from equity affiliates 83,966   84,738   175,367   164,904 Income tax expense 19,426   18,546   43,744   32,042 Income before earnings from equity affiliates 64,540   66,192   131,623   132,862 Loss from equity-method investment (29)  (141)  (31)  (250)Net income$64,511  $66,051  $131,592  $132,612 Earnings per share:       Basic$0.42  $0.41  $0.85  $0.82 Diluted$0.42  $0.40  $0.85  $0.81 Weighted average number of shares used in computing earnings per share:       Basic 152,554,401   162,925,484   154,292,120   162,709,034 Diluted 152,831,994   164,193,258   154,858,444   164,376,498                  (1) Exclusive of depreciation and amortization expense.

 EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)
   As of  June 30, 2026 December 31, 2025     Assets    Current assets:    Cash and cash equivalents $126,722  $146,326 Short-term investments  157,102   182,041 Restricted cash  12,964   12,392 Accounts receivable, net  434,362   343,105 Other current assets  144,132   146,093 Total current assets  875,282   829,957 Property and equipment, net  114,587   111,821 Operating lease right-of-use assets  97,495   97,411 Restricted cash  7,086   7,251 Deferred tax assets, net  139,288   129,968 Goodwill  418,693   419,654 Other intangible assets, net  29,720   36,204 Long-term investments  6,396   8,198 Other assets  59,340   61,771 Total assets $1,747,887  $1,702,235 Liabilities and stockholders’ equity    Current liabilities:    Accounts payable $6,733  $4,753 Current portion of long-term borrowings  381,155   4,886 Deferred revenue  22,591   15,356 Accrued employee costs  112,908   146,775 Accrued expenses and other current liabilities  161,525   135,498 Current portion of operating lease liabilities  18,734   16,857 Total current liabilities  703,646   324,125 Long-term borrowings, less current portion  —   293,712 Operating lease liabilities, less current portion  88,130   88,167 Deferred tax liabilities, net  2,256   2,125 Other non-current liabilities  87,613   81,401 Total liabilities  881,645   789,530 Commitments and contingencies    Stockholders’ equity:    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued  —   — Common stock, $0.001 par value; 400,000,000 shares authorized, 210,101,885 shares issued and 151,745,072 shares outstanding as of June 30, 2026 and 208,855,566 shares issued and 156,430,028 shares outstanding as of December 31, 2025  210   209 Additional paid-in capital  724,432   677,562 Retained earnings  1,664,571   1,532,979 Accumulated other comprehensive loss  (223,682)  (180,727)Total including shares held in treasury  2,165,531   2,030,023 Less: 58,356,813 shares as of June 30, 2026 and 52,425,538 shares as of December 31, 2025, held in treasury, at cost  (1,299,289)  (1,117,318)Total stockholders’ equity  866,242   912,705 Total liabilities and stockholders’ equity  $1,747,887  $1,702,235 
EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

Adjusted operating income and adjusted operating income margin;Adjusted EBITDA and adjusted EBITDA margin;Adjusted net income and adjusted diluted earnings per share; andRevenue growth on a constant currency basis. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, amortization of prior service cost arising from implementation of new Labor Codes in India, certain defined social security contributions, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

EXL provides information about revenues on a constant currency basis so that the revenues may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of the Company's underlying business performance. Revenue growth on a constant currency basis is calculated by restating current-period activity using the prior fiscal period's foreign currency exchange rates adjusted for hedging gains/losses in such period. Foreign currency translation impacted revenue growth, primarily driven by movements in the U.S. dollar against the Indian rupee (INR), the U.K. pound sterling (GBP), and Australian dollar (AUD).

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended June 30, 2026 and June 30, 2025, and the three months ended March 31, 2026:

 Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)
   Three months ended   June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Income tax expense  19,426   18,546   24,318 add/(subtract): Foreign exchange gain/(loss), net, interest expense, gain/(loss)
from equity-method investment and other income/(loss), net  3,358   (3,459)  427 Income from operations (GAAP) $87,295  $81,138  $91,826 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Acquisition-related expenses (a)  1,894   —   — Adjusted operating income (Non-GAAP) $117,078  $100,807  $117,153 Adjusted operating income margin as a % of revenue (Non-GAAP)  19.7 %  19.6 %  20.5 %add: Depreciation on long-lived assets  11,346   10,778   10,777 Adjusted EBITDA (Non-GAAP) $128,424  $111,585  $127,930 Adjusted EBITDA margin as a % of revenue (Non-GAAP)  21.6 %  21.7 %  22.4 %              (a)   To exclude acquisition-related expenses incurred for the announced acquisition of I Merit Inc. (“iMerit”) during the three months ended June 30, 2026.

 Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share amount)
   Three months ended  June 30, March 31,  2026
 2025
 2026
Net income (GAAP) $64,511  $66,051  $67,081 add: Stock-based compensation expense  24,631   16,392   22,101 add: Amortization of acquisition-related intangibles  3,258   3,277   3,226 add: Changes in fair value of contingent consideration  3,000   —   — add: Acquisition-related expenses (a)  1,894   —   — add: Amortization of prior service cost (b)  566   —   521 subtract: Acquisition-related adjustments  —   (945)  — subtract: Tax impact on stock-based compensation expense (c)  (6,097)  (4,211)  (1,316)subtract: Tax impact on amortization of acquisition-related intangibles  (821)  (807)  (812)subtract: Tax impact on amortization of prior service cost  (144)  —   (133)Adjusted net income (Non-GAAP) $90,798  $79,757  $90,668 Adjusted diluted earnings per share (Non-GAAP) $0.59  $0.49  $0.58  (a)To exclude acquisition-related expenses incurred for the announced acquisition of iMerit during the three months ended June 30, 2026.(b)To exclude amortization of prior service cost arising from the implementation of the new Labor Codes in India.(c)Tax impact includes ($17) and $203 during the three months ended June 30, 2026 and 2025 respectively, and $1,280 during the three months ended March 31, 2026, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.