Track market-moving stories before they get noisy

Key Takeaways APLD has 1.41 GW of contracted IT load across five campuses, backing about $36 billion in lease revenues.Applied Digital funded 600 MW at Polaris Forge through project debt, Macquarie equity and its balance sheet.Power and supply constraints, not demand, are the main limits as Polaris Forge 1 reaches 175 MW live. Applied Digital Corporation (APLD - Free Report) used its fiscal fourth-quarter 2026 earnings call to emphasize contracted scale, financing progress and execution across its expanding AI data center portfolio.

Management’s message centered on converting a large development pipeline into operating capacity while securing power, controlling construction costs and lowering the capital required to fund growth.

APLD Builds Around Contracted ScaleChairman and CEO Wes Cummins said Applied Digital now has 1.41 gigawatts of contracted critical IT load across five campuses, supporting approximately $36 billion of base-term lease revenues.

Three recent leases with the same high investment-grade hyperscaler cover 810 megawatts and approximately $20 billion of contracted revenues. Cummins described the concentration as part of a deliberate shift toward durable agreements with financially stronger customers.

Management is also marketing another 1.7 gigawatts across multiple states. Expansion options under negotiation with two existing customers could add 250 megawatts and more than $6 billion of contracted revenue based on current rates and lease durations.

Applied Digital Targets Higher Lease PricingCummins said rental rates have increased during the past six months, creating room for better economics on new campuses and customer expansions.

A Lake Street Capital Markets analyst asked about the proposed 100-megawatt and 150-megawatt expansions. Cummins said both would involve existing customers and should carry materially higher pricing than their current agreements.

During a Northland Securities exchange about development yields, Cummins defended the recent leases as competitive for their scale, duration and customer quality. He added that management uses conservative cost and margin assumptions when evaluating project returns.

APLD Lowers Its Cost of CapitalCFO Saidal Mohmand highlighted financing as a central part of the company’s development model. Applied Digital secured funding for all 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2.

The company issued $2.15 billion of 6.75% senior secured notes and $1.59 billion of 7% senior secured notes. Mohmand said the latter financing priced 225 basis points below the company’s first project bond placement.

Mohmand described a three-part funding structure combining Applied Digital’s balance sheet, Macquarie’s contribution of three-quarters of required project equity and site-specific debt. Management expects investment-grade tenant agreements to support more favorable financing for its next three campuses.

Applied Digital Flags Power and Supply ConstraintsCummins identified power availability and supply-chain capacity as the main limits on growth rather than customer demand.

The company is working with Base Electron on approximately 1.2 gigawatts of natural gas-fired generation in the Dakotas. Management views added generation and regional transmission projects as essential to expanding existing campuses beyond their initial capacity.

Cummins also said the company had previously secured supply-chain capacity for roughly 700 megawatts of annual critical IT load. Applied Digital is now building beyond that level, placing greater importance on equipment availability, construction sequencing and labor planning.

APLD’s Results Reflect an Early RampFiscal fourth-quarter adjusted revenues were $240.4 million, which beat the Zacks Consensus Estimate of $99.3 million. It incurred a loss of 39 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 18 cents.

HPC hosting generated $203 million of revenues, including $152.4 million from tenant fit-out services and $44.1 million from base rent. Adjusted EBITDA reached $42.4 million, and net operating income was $39.9 million.

Mohmand stressed that quarterly HPC results primarily reflected the first 100 megawatts operating at Polaris Forge 1. The company subsequently brought another 75 megawatts online, taking live capacity at the campus to 175 megawatts.

Applied Digital Keeps Execution CentralManagement maintained a confident tone on demand but repeatedly returned to construction discipline. Cummins said all current projects were on time and on budget, while noting that power and supply-chain management remain critical.

Applied Digital now expects to reach a $1 billion annual net operating income run rate within one year, three years earlier than its original target. The company’s priorities remain delivering contracted capacity, financing projects efficiently and expanding existing campuses.

Zacks Signals Remain CautiousAPLD currently carries a Zacks Rank #3 (Hold). That ranking indicates a neutral near-term earnings revision outlook rather than a clear signal of outperformance or underperformance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a Value, Growth, Momentum and VGM Score of F each, indicating weak characteristics across all four measures. Style Scores work best alongside the Zacks Rank, with A or B grades viewed more favorably. The Zacks Rank can change as analyst estimates are revised following the newly reported results.

Key Takeaways CoreWeave Cloud will power Anam's production AI workloads for interactive photorealistic avatars.CRWV will provide low-latency AI inference using NVIDIA RTX PRO 6000 Blackwell GPUs in the U.S. and Europe.Interactive AI avatars need intensive computing, creating growth opportunities for CRWV's AI cloud platform. CoreWeave, Inc. (CRWV - Free Report) continues to strengthen its position in the rapidly expanding AI infrastructure market, this time through a partnership with interactive avatar platform Anam.  Anam, an interactive avatar platform, has selected CoreWeave Cloud to power its production AI workloads. As enterprises increasingly adopt AI-powered digital humans and conversational assistants, partnerships like this could help CoreWeave diversify its customer base and expand its long-term revenue opportunities.

Anam develops photorealistic AI avatars for face-to-face conversations. These avatars require responses within 180 milliseconds to ensure natural interactions, making low-latency inference a critical requirement. To handle these intensive workloads, Anam will deploy its AI inference applications on CoreWeave Cloud using NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs across infrastructure in the United States and Europe. CoreWeave's comprehensive AI cloud platform will deliver high-performance GPU infrastructure optimized for AI inference, consistent performance across development and production environments, global deployment capabilities, high availability, enterprise-grade uptime and low-latency AI processing for real-time applications. This enables Anam to scale its interactive avatar services while providing a seamless user experience.

Interactive AI avatars represent one of the fastest-growing applications of generative AI. Businesses are increasingly deploying virtual assistants for customer support, healthcare, education, financial services and enterprise productivity. Each interaction requires substantial computing power for language processing, speech recognition, voice generation, facial animation and real-time rendering. By powering platforms such as Anam, CoreWeave is positioning itself to benefit from the expansion of these next-generation AI applications.

Can CRWV Outpace Rivals in AI Cloud Infrastructure?Nebius Group N.V. (NBIS - Free Report) recently introduced a new asset-light AI cloud business model that could accelerate its growth while reducing capital intensity. The strategy enables infrastructure partners to deploy Nebius' complete AI cloud platform within their own data centers, allowing it to expand its capacity globally without incurring the full cost of building every facility itself. It also unveiled Nebius AI Cloud Aether 3.6, a wide range of enhancements focused on developer productivity, enterprise-grade security, governance and storage performance. To strengthen its position in the rapidly evolving AI cloud market, NBIS inked an agreement to acquire Eigen AI in May.

Microsoft (MSFT - Free Report) capitalizes on the momentum of AI business and Copilot adoption, alongside the expansion of Azure cloud infrastructure.  The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. In July, Microsoft and Nine Entertainment Co. struck Australia's first-of-its-kind AI content deal, allowing Microsoft Copilot to reference Nine's professional journalism –beyond paywalled previews –to ground AI-generated responses in verified facts, while directing users to Nine's mastheads for the full story. Strength in both AI infrastructure and applications should drive incremental revenue streams and margin expansion as adoption accelerates throughout fiscal 2026 and beyond.

CRWV’s Price Performance and EstimatesShares of CoreWeave have declined 1.2% year to date compared with the Internet Software industry’s fall of 10.2%.

Image Source: Zacks Investment Research

In terms of Price/Book, CRWV’s shares are trading at 6.66X, higher than the Internet Software Services industry’s 4.61X.

Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

CRWV currently carries a Zacks Rank #2 (Buy).

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

View of an Apple logo at an Apple store in Paris, France, April 23, 2025. REUTERS/Abdul Saboor/File Photo Purchase Licensing Rights, opens new tab

July 28 (Reuters) - Apple's market capitalization briefly surpassed $5 trillion for the first time on Tuesday, making it only the second company ever to achieve that milestone after Nvidia (NVDA.O), opens new tab.

Its shares (AAPL.O), opens new tab were last ​up 0.2% at $337.7, giving it a market capitalization of $4.96 trillion. At a ‌session high of $342.89, Apple's market value stood at $5.036 trillion.

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The iPhone maker became the most valuable company in the world earlier this month, overtaking chip giant Nvidia (NVDA.O), opens new tab - which had been at the top since June 2025 ​and was the first company ever to breach the $5 trillion threshold.

For Apple, this ​year's rally has been driven as much by strong demand for its ⁠products as its decision to sit out the AI spending race that is sapping cash ​flows at Big Tech rivals.

The consumer electronics giant struggled to develop in-house AI models and ​has instead relied on Google's technology to power new services such as a revamped Siri, avoiding the hefty infrastructure costs that have left Big Tech investors wary of the payoff from surging data-center investments.

Its ​decision to hold iPhone prices steady last month when it unveiled increases for MacBooks and ​iPads has also bolstered demand as buyers scooped up the company's flagship device ahead of expected price ‌hikes ⁠later this year, analysts have said.

To aid demand, Apple on Tuesday also launched a device leasing program in the U.S. through payments firm Klarna (KLAR.N), opens new tab, under which monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad and $24.99 for a Mac.

"Apple has resisted the ​AI spending race, betting ​that customer experience - not ⁠infrastructure investment - will ultimately determine the winners," said Dipanjan Chatterjee, vice president and principal analyst at Forrester.

"The new leasing program is a clever response: ​it doesn't reduce the price of an iPhone, but it changes ​how consumers ⁠perceive the cost by replacing sticker shock with a predictable monthly payment."

Including session gains, Apple stock has jumped 24% so far this year, widely outperforming the other six of the "Magnificent 7" ⁠cohort of ​U.S. technology stocks.

Apple is set to report its third-quarter ​earnings after the market close on Thursday, with analysts expecting a more than 15% jump in quarterly revenue from ​a year earlier.

Reporting by Shashwat Chauhan and Aditya Soni in Bengaluru; Editing by Anil D'Silva

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

Meta is set to report earnings after the market close Wednesday, and traders on prediction market platform Kalshi think the Instagram parent will use its conference call to highlight its Ray-Ban Meta smart glasses and push into the cloud market, while steering clear of social media policy debates. 

In a "mentions market" — where speculators on Kalshi are asked to place trades on whether specific words will be used during a call or speech — for the Meta earnings call, traders place 90% odds that the hyperscaler's management will say the word "cloud."

Bloomberg reported earlier this month that Meta was developing a cloud infrastructure business to sell access to raw computing power. 

Speculators are only a little less certain that Meta on the call will say "Ray-Ban," its smart glass partner, giving it a 74% chance. Last month, Meta debuted a new smart glasses model at a lower price, developed with Ray-Ban parent EssilorLuxottica.

Traders are think there's a 61% chance Meta will discuss its chips by using the word "silicon."

Odds that Meta mentions "Hyperion," the name of its data center project in rural Louisiana stand at just 27%.   

And don't expect Meta to discuss social media policy either.

While the U.K. is the latest country to pursue bans on children using social media, traders think there's only a 15% chance Meta mentions "age verification." 

Traders think there's just a 20% chance Meta uses the terms "prediction market" or "Kalshi." Reports in June revealed Meta CEO Mark Zuckerberg directed staff to build a prediction market platform, and NPR reported later the same month that Meta at one point was in talks to acquire Kalshi. 

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.

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SummaryTesla, Inc. reported record Q2 deliveries and revenue, but margins collapsed and free cash flow turned negative for the first time in two years.TSLA plans over $25 billion in CapEx this year and is pursuing up to $30 billion in debt capacity, signaling a major shift in funding strategy.Competitive pressures are intensifying in Europe, China, and the U.S., while recent demand was likely boosted by temporary geopolitical factors.My updated DCF model yields a fair value of $91.95 per TSLA share—about 70% below current levels—supporting a bearish stance despite some positive demand signals. jetcityimage/iStock Editorial via Getty Images

A month ago, I argued that Tesla, Inc. (TSLA) had become one of the biggest disconnects between price and fundamentals that the market has ever produced. Since that time, the shares have declined by ~27%. After

10.44K Followers

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.

Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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.

Item 1 of 2 The Rogers Building, the green-topped corporate campus of Canadian media conglomerate Rogers Communications is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren/File Photo

[1/2]The Rogers Building, the green-topped corporate campus of Canadian media conglomerate Rogers Communications is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren/File Photo Purchase Licensing Rights, opens new tab

July 28 (Reuters) - Rogers Communications (RCIb.TO), opens new tab and Amazon.com's (AMZN.O), opens new tab Prime Video on Monday signed a 12-year sublicensing agreement granting the ​streaming platform exclusive rights to broadcast Wednesday ‌night national NHL games in Canada beginning with the 2026-27 season.

The deal also grants Prime Video exclusive ​rights to select Stanley Cup playoff ​series and expands its NHL offering in ⁠Canada, where Rogers last year renewed ​national NHL media rights through the 2037-38 season.

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Here ​are more details:

The package includes at least 26 national regular-season games annually, starting September 30, 2026.

The ​agreement comes as streaming platforms invest heavily ​in live sports rights, one of the few categories ‌of ⁠programming that continues to draw large real-time audiences.

Sportsnet will retain exclusive English-language rights to more than 500 national NHL games ​per season, including ​most ⁠playoff coverage.

It builds on Rogers' broader 12-year NHL national media-rights renewal ​covering the 2026-27 to 2037-38 seasons.

Rogers ​is ⁠one of Canada's largest sports media companies, with major sports broadcasting rights and ownership ⁠stakes ​in leading professional franchises.

Financial ​terms of the sublicensing deal were not disclosed.

Reporting by Rashika ​Singh in Bengaluru; Editing by Tasim Zahid

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

© Slaven Vlasic / Getty Images Entertainment via Getty Images

Robotics is moving out of the lab and into the real economy. Speaking at YC Startup School, NVIDIA CEO Jensen Huang made a striking claim about the timing of the next great AI wave. Asked about robotics, he told the audience: “I would say the ChatGPT moment of robots happened a couple of years ago already.” Paired with Huang’s estimate that physical AI opens a $50 trillion market opportunity, the comment reframes robotics as a wave already breaking, not one still waiting offshore.

The Moment Huang Says Changed Everything Huang traced the shift back to generative video work inside NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) labs. “A couple of years earlier, inside our labs, we were driving a simulator completely generated by video, completely generated by neural networks,” he said. The breakthrough came when he connected generated video with physical movement: “If I could generate video of a hand picking up a glass, why can’t I cause a robot to do the same?”

That insight, he said, launched NVIDIA’s push into “a world foundation model, an AI that understands the laws of physics and how the world works.” That strategy now spans Cosmos world foundation models and Isaac GR00T robot foundation models, alongside the DRIVE Hyperion autonomy platform used by Hyundai, Kia, Uber, BYD, Geely, Isuzu, and Nissan.

The Numbers Behind the Thesis The financials say the buildout is real. NVIDIA’s Q1 FY2027 revenue hit $81.615 billion, up 85.23% year over year, with Data Center revenue reaching $75.246 billion, up 92% YoY, and non-GAAP gross margin at 75.0%. Total supply commitments now stand at $119.0 billion, compared with $95.2 billion in the prior quarter, a signal Huang is putting cash behind his conviction. On the company’s last earnings call, he described the AI factory buildout as “the largest infrastructure expansion in human history.” Investors have bought in, though cautiously. Shares are up 12.3% over the past year.

The Memory Beneficiary Every physical AI model needs memory. Micron Technology (NASDAQ:MU) posted Q3 FY2026 revenue of $41.46 billion, up 345.7% year over year, with gross margin expanding to 84.6%. CEO Sanjay Mehrotra said results “reflect the strategic value of memory in the AI era.” Q4 guidance calls for $50.0 billion in revenue. The stock is up 189.5% year to date.

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The Smaller, Riskier Plays Serve Robotics (NASDAQ:SERV) runs roughly 2,000 delivery robots powered by NVIDIA Jetson Orin compute, with Q1 revenue of $2.98 million (up 577.5% YoY) and 2026 guidance near $26 million, quite a jump. Yet the stock trades at $4.68, down 55.2% year to date, versus an analyst target of $18.45.

Arbe Robotics (NASDAQ:ARBE) builds 4D imaging radar and is integrating with NVIDIA’s DRIVE Hyperion platform. Q1 2026 revenue was $0.5 million, and shares sit at $0.64 against an analyst target of $2.50.

If Huang is right that the robotics ChatGPT moment is already behind us, the picks-and-shovels names are showing it first. The smaller autonomy plays remain lottery tickets on whether the $50 trillion tally is closer to self-fulfilling prophecy than hyperbole.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Key Takeaways Mastercard may post a Q2 earnings beat, supported by strong GDV and resilient payment trends.MA is expected to benefit from higher cross-border volumes, transactions and services revenue growth.MA trades above industry and key peers on forward P/E, suggesting limited room for earnings disappointment. Payments giant Mastercard Incorporated (MA - Free Report) is set to report second-quarter 2026 results on July 30, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.77 per share on revenues of $9.06 billion. 

The second-quarter earnings estimate witnessed three upward revisions and one downward movement over the past 60 days. The bottom-line projection indicates an increase of 14.9% from the year-ago reported number. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 11.4%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for Mastercard’s revenues is pegged at $37 billion, implying a rise of 12.8% year over year. Also, the consensus mark for 2026 earnings per share is pegged at $19.63, implying a jump of 15.4% on a year-over-year basis.

Mastercardhas a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 5.5%. This is depicted in the figure below.

Q2 Earnings Whispers for MastercardOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

MA has an Earnings ESP of +0.39% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

What’s Shaping Mastercard’s Q2 Results?The Zacks Consensus Estimate for the company’s total Gross Dollar Volume (GDV) for all MA-branded programs suggests a 9.4% rise from the prior-year quarter’s reported figure. GDV from domestic operations is expected to increase 4.9% year over year and 14.7% from European operations.

Switched transactions are expected to have experienced an upsurge, driven by resilient consumer spending and increased contactless acceptance initiatives pursued by the company. The Zacks Consensus Estimate for its switched transactions indicates a 9% rise from the prior-year quarter’s reported figure. Other companies like Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) also have benefited from resilient spending in the June quarter.

Increasing cross-border travel is expected to have had a positive impact on Mastercard's cross-border volumes. As such, the consensus estimate for cross-border assessments suggests an increase of 12.1% compared with the previous year. Further, the consensus mark implies domestic assessments and transaction processing assessments to witness a 9.3% and 11.6% year-over-year increase, respectively.

The Zacks Consensus Estimate for Value-added Services and Solutions net revenues indicates 18.3% year-over-year growth, while our model estimate suggests a 19.4% increase in the second quarter. Growing demand for its consulting and marketing services and loyalty solutions is likely to have driven this metric.

The above-mentioned factors are expected to have positioned the company not only for year-over-year growth but also for a likely earnings beat. The positives are expected to have been partially offset by rising expenses, rebates and incentives.

Mastercard’s adjusted operating costs are likely to have increased in the second quarter due to higher G&A costs and Advertising & Marketing expenses. We expect total adjusted operating expenses to rise more than 11% from the prior-year quarter’s actuals. Furthermore, our estimate for payments network rebates and incentives suggests a nearly 15% year-over-year increase.

Mastercard’s Price Performance & ValuationOver the year-to-date period, Mastercard has declined 3.4%, while Visa has gained 3.4%, and American Express has slipped 9.3%. All of these stocks underperformed theS&P 500 Index’s 7.6% growth. The industry hasdeclined 9.3% during this time.

YTD Price Performance – MA, V, AXP, Industry & S&P 500 Image Source: Zacks Investment Research

Now, let’s look at the value Mastercardoffers investors at current levels.

The company’s valuation looks stretched compared with the industry average, despite the declines. Currently, Mastercardis trading at 25.81X forward 12-month earnings, above the industry’s 18.64X. In comparison, both Visa and American Express offer better value at the moment, trading at a forward P/E of 24.88X and 17.53X.

Image Source: Zacks Investment Research

How Should You Play Mastercard Ahead of Q2 Earnings?Mastercard enters its second-quarter report with several positives working in its favor. Consumer spending has remained resilient, cross-border travel continues to support high-margin payment volumes, and the company's value-added services business is expanding at a healthy pace. The positive Earnings ESP and a Zacks Rank #3 also point to the possibility of another earnings beat, consistent with its strong track record over the past four quarters.

That said, much of the company's long-term strength is already reflected in its valuation. Mastercard trades at a premium to both its industry and key peers, leaving less room for disappointment if management's outlook falls short of expectations. Investors should also keep an eye on regulatory developments and the evolving competitive landscape, even though neither appears likely to alter the company's long-term trajectory in the near future.

Overall, Mastercard remains one of the highest-quality businesses in the payments industry, backed by durable secular growth drivers and ongoing investments in AI, stablecoins and value-added services. As such, existing investors have reasons to stay invested, while new investors may find it prudent to wait for the earnings release or a more attractive entry point before building a position.

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© Joyseulay / Shutterstock.com

The iShares Systematic Alternatives Active ETF (NASDAQ:IALT) is BlackRock’s attempt to shove a hedge fund into a ticker symbol, and the reception has been enthusiastic. IALT launched in December 2025 with a mandate to deliver absolute returns using equity market neutral, managed futures, and diversified bond strategies. Money has arrived in bulk before anyone can credibly say whether the machine works.

The Problem IALT Says It Solves The pitch rests on a real portfolio problem. Market concentration in a handful of mega-caps remains extreme, and the traditional inverse correlation between stocks and bonds has weakened, so the 60/40 has partly stopped doing the one job it was hired for. J.P. Morgan’s 2026 outlook puts it flatly, arguing that the traditional stock/bond framework of “60/40” should be reformed to include alternative assets.

IALT is BlackRock’s attempt to be that alternative sleeve in a single ticker. It is actively managed by Jeffrey Rosenberg, a Senior Portfolio Manager at BlackRock Systematic, and uses quantitative models to trade equities, fixed income, commodities, and currencies across developed and emerging markets. The stated goal is a return stream that behaves differently from stocks and bonds, especially when the two move together.

The macro backdrop cooperates with the marketing. The 10-year minus 2-year Treasury spread sits at 0.36%, in the 6th percentile of the past 12 months. Meanwhile, the 10-year Treasury yield has ripped to 4.71%, near its year-to-date high. A flat curve with rising long yields is the exact environment where bond diversification tends to disappoint.

Decoding a Very Strange-Looking Portfolio Pull up IALT on Morningstar, and you will see something that looks like a mistake. Thousands of positions. A majority of the portfolio flagged as cash. A top-10 holdings figure that can display as negative. That is the fingerprint of a long/short book viewed from the outside.

A useful comparison is AGF U.S. Market Neutral Anti-Beta Fund (NYSEARCA:BTAL), which discloses hundreds of paired longs and shorts. Shorts show up as negative dollar values, cash collateralizes the shorts, and net exposure ends up near zero. IALT’s disclosures follow the same logic. When Morningstar shows a negative top-10, that is short exposure netting against longs, which is what a market-neutral strategy is supposed to look like.

Is It Actually Working? Too Early to Say Here is the part where a portfolio-fit article usually compares three-year returns against a benchmark. That cannot be done for IALT. The fund is roughly seven months old. Any performance number pulled today is noise.

What we do have is flow data, and flows have been loud. Envestnet Portfolio Solutions opened a $140.9 million position as of its June 30, 2026 13F. Ninety investors added IALT shares, and six major firms increased their stakes significantly. Industry-wide, alternative ETFs pulled in nearly $30 billion of net new assets in 2026 year-to-date.

Inflows are evidence a strategy sells, not that it works. BlackRock knows this. VettaFi’s Todd Rosenbluth flagged the friction point most reviews land on, which is the 99 basis point expense ratio, meaningful money for something that has not yet earned its keep.

The Tradeoffs Fee drag. Ninety-nine basis points compounds against you every year the strategy fails to deliver differentiated returns. A simple aggregate bond fund costs a fraction of that. No track record. Absolute return strategies are judged over full cycles, not seven months. The VIX at 19 means the fund has not yet been tested by real stress. Complexity risk. You cannot easily explain why the fund is up or down in a given month, which makes it hard to hold through inevitable disappointment. Who Should Actually Own This IALT fits investors who already believe the 60/40 is broken, who can tolerate a fund whose behavior they cannot fully explain, and who are sizing it as a 5% to 10% diversifier rather than a core holding. For anyone treating it as a bond substitute or an equity substitute, wait. Come back in three years with real return data. Until then, the billions rushing in are a story about BlackRock’s distribution engine, not a verdict on the strategy.

Contact [email protected] for any questions or corrections.

Starbucks (NASDAQ:SBUX | SBUX Price Prediction) is finally showing signs that CEO Brian Niccol’s “Back to Starbucks” plan is landing with customers. The question for income investors is whether the coffee giant’s long dividend-growth streak can survive the cost of the fix.

The Turnaround Finds a Pulse Fiscal Q2 2026 was the cleanest data point yet. Revenue climbed to $9.531 billion, up 8.79% year over year, with global comparable-store sales up 6.2% on 3.8% transaction growth. North America comps rose 7.1%, while China was essentially flat at +0.5% comparable-store sales growth, with a 1.6% decline in average ticket size. Non-GAAP EPS came in at $0.50 versus the $0.4054 consensus estimate, a 23.3% beat.

Niccol was direct on the call: “Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth.”

Management raised its full-year outlook, guiding for comparable-store sales growth of 5.0% or more and non-GAAP EPS of $2.25 to $2.45. Meanwhile, Starbucks closed a China joint venture with Boyu Capital, retaining a 40% stake plus brand licensing, and slowed net new openings to just 11 stores in Q2, with 62 closures under its restructuring plan.

Watch for Starbucks Q3 fiscal year 2026 report on Wednesday, July 29, 2026, after the stock market closes.

The Dividend: A Streak Under Pressure Starbucks pays a quarterly dividend of $0.62, with the next ex-date on August 14, 2026, and payment on August 28, 2026. The yield is near 2.4%, on shares at $103.65. That is 64 consecutive quarters of payouts with a historical CAGR of roughly 17%.

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Coverage is the concern. Free cash flow covered the dividend at 0.88x in FY2025, down from 1.28x in FY2024. Quarterly EPS has been below the payout in every recent quarter, and shareholders’ equity stands at negative $8.458 billion. On a valuation basis, the trailing P/E is a rich 79x, with a forward P/E of 35x.

One positive signal: management suspended buybacks in FY2025 (repurchases of $0) after $1.27 billion in FY2024, effectively prioritizing the dividend.

What Income Investors Should Watch Wall Street is measured. The consensus analyst price target is $106.45, only modestly above the current share price. Polymarket traders assign a 92.5% probability to a Q3 earnings beat, though no prediction market for a dividend cut currently exists.

For retirement investors, the dividend looks safe in the near term because management is choosing it over buybacks, and Q2 momentum is genuine. The item to monitor is payout coverage. If free cash flow does not recover toward historical norms as remodeling and labor costs normalize, the 17% dividend-growth cadence will slow long before the dividend payment itself is at risk.

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PayPal is seemingly still open to Stripe’s $53.4 billion takeover bid, just not at the price the latter had offered.

On the company’s Q2 2026 earnings call on Tuesday, PayPal CEO Enrique Lores didn’t fully shut down the idea of a deal, saying the company would consider a path that created “superior value” for its shareholders.

While that’s not the same as saying, “PayPal’s not for sale,” it still suggests the company doesn’t believe Stripe and Advent International’s current offer of $60.50 per share values it correctly, especially after the company reported better-than-expected profit and revenue, and said it had made progress on its turnaround strategy.

An analysis from financial services firm Cantor valued PayPal at closer to $70 per share. The company’s shares are currently trading at around $58.

PayPal reported adjusted profit of $1.38 per share, beating expectations of $1.28 per share. Revenue was up 5% year-over-year to $8.68 billion, above estimates of $8.47 billion. And adjusted free cash flow of $1.8 billion gives the company room to continue investing in its products and strategy.

That doesn’t mean PayPal would walk away from a takeover bid.

While Lores didn’t directly address Stripe’s offer, saying PayPal doesn’t comment on potential mergers or market speculation, he did acknowledge that a viable M&A bid would not be dismissed outright.

“If we see levers or a path that we believe would create superior value for our shareholders than executing our current strategy, we would, of course, carefully consider them,” he told investors on Tuesday.

PayPal is still busy with its AI-focused turnaround, which included a restructuring exercise to streamline its operations into three segments: checkout solutions and PayPal; consumer financial services (and Venmo); and payment services and crypto. The company has said it will generate additional cost savings as it embraces AI in areas like coding, customer service, support operations, and risk management.

Lores offered an update on this strategy on Tuesday, saying the company was “making good progress” on its plan to deliver at least $1.5 billion in gross run-rate savings over the next two to three years. He also said PayPal is on track to remove three organizational layers across the company and is continuing to modernize its technology. This last bit includes migrating from its data center to the cloud, building a more modular and scalable architecture, and reducing platform complexity.

“We believe that executing the transformation strategy I have outlined will create significant value for shareholders. That remains our focus,” Lores said. “While there is still significant work ahead, I have strong conviction in our direction and in our ability to execute.”

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

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Wall Street expects a year-over-year decline in earnings on lower revenues when Pfizer (PFE - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis drugmaker is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of -12.8%.

Revenues are expected to be $14.45 billion, down 1.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.31% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Pfizer?For Pfizer, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.07%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Pfizer will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Pfizer would post earnings of $0.71 per share when it actually produced earnings of $0.75, delivering a surprise of +5.63%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Pfizer appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Large Cap Pharmaceuticals industry, AbbVie (ABBV - Free Report) , is soon expected to post earnings of $3.66 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +23.2%. This quarter's revenue is expected to be $16.81 billion, up 9% from the year-ago quarter.

The consensus EPS estimate for AbbVie has been revised 0.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.01%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AbbVie will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Chevron discussed potential investments in West Qurna 2 and Nassiriya with Iraqi officials.CVX signed preliminary agreements to assess Nassiriya and study crude export pipeline projects.Chevron could expand its Middle East upstream portfolio if talks lead to operating contracts and approvals. Chevron Corporation (CVX - Free Report) is once again exploring opportunities in Iraq, signaling renewed interest in one of the world's largest oil-producing regions. The company recently held discussions with Iraqi officials regarding potential investments in the giant West Qurna 2 and Nassiriya oil fields. This move follows Russia's Lukoil's exit from the West Qurna 2 project, creating an opportunity for Iraq to bring in another international energy major as a potential operator.

Chevron Evaluates Multiple Growth Opportunities in IraqThe latest discussions suggest CVX is evaluating opportunities beyond a single producing asset. In addition to West Qurna 2, the company has signed preliminary agreements to evaluate development opportunities at Nassiriya, which includes four exploration blocks and the Balad oil field. CVX is also expected to participate in technical studies for proposed crude export pipeline projects linking Iraq with Turkey and Syria. Together, these initiatives indicate that Chevron is assessing a broader presence across Iraq's upstream sector and export infrastructure rather than pursuing an isolated investment.

Why Iraq Matters to ChevronThe potential opportunity is significant. Iraq possesses some of the world's largest proven crude oil reserves, while fields such as West Qurna 2 rank among the country's highest-producing assets. For CVX, gaining access to these conventional, long-life reservoirs could complement its existing portfolio by adding large-scale production assets capable of generating output for decades. Although the discussions remain preliminary and no final investment decisions have been announced, they underscore Chevron's growing interest in expanding its footprint in the Middle East.

Global Energy Majors Continue Expanding in IraqChevron is not alone in recognizing Iraq's long-term potential.

ExxonMobil Holdings Corporation (XOM - Free Report) established its presence through the development of the giant West Qurna 1 field, demonstrating the value international oil companies place on Iraq's low-cost conventional reserves. TotalEnergies SE (TTE - Free Report) has taken a broader approach through its Gas Growth Integrated Project, combining oil production, natural gas processing, water infrastructure and renewable energy investments.

Meanwhile, BP (BP - Free Report) recently strengthened its commitment by signing an agreement to redevelop the Kirkuk oil fields, while ConocoPhillips agreed to acquire a 42% interest in the project, reinforcing the industry's continued confidence in Iraq's resource base.

Chevron's Iraq Strategy Could Boost Its International PortfolioChevron's latest discussions therefore represent more than a return to Iraq — these reflect a potential effort to secure a stronger position in one of the world's most strategically important oil markets. If these preliminary agreements ultimately lead to operating contracts and investment approvals, the company could meaningfully expand its international upstream portfolio while joining other global energy majors that are increasing their investments in Iraq.

Over the past year, Chevron's shares appreciated 21.7%, delivering a solid positive return. However, the stock lagged key integrated energy peers, including ExxonMobil, TotalEnergies and BP’s rise of 38.8%, 38.1% and 29.6%, respectively.

One-Year Share Price Comparison
Image Source: Zacks Investment Research

How Chevron's Valuation Compares
Image Source: Zacks Investment Research

Chevron's trailing P/E ratio stands at approximately 13.5x, slightly below ExxonMobil's 14x. However, its valuation remains substantially higher than BP's 9.19x and TotalEnergies' 8.61x, suggesting investors are willing to pay a higher multiple for the stock than for those European oil majors.

Earnings Outlook and Zacks Rank
Image Source: Zacks Investment Research

Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has decreased 0.89%, while the estimate for 2027 has increased 3.6%.

Final ThoughtsCVX's renewed engagement with Iraq comes at a time when global energy companies are competing for access to large, low-cost, long-life oil reserves. While the company's discussions remain at an early stage, potential investments in West Qurna 2, Nassiriya and export infrastructure could strengthen CVX's international production portfolio and support long-term growth.

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

Emerson Electric (EMR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on August 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis maker of process controls systems, valves and analytical instruments is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +10.5%.

Revenues are expected to be $4.79 billion, up 5.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.12% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Emerson Electric?For Emerson Electric, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.21%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Emerson Electric will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Emerson Electric would post earnings of $1.54 per share when it actually produced earnings of $1.54, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Emerson Electric doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Manufacturing - Electronics industry, Eaton (ETN - Free Report) , is soon expected to post earnings of $3.08 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +4.4%. This quarter's revenue is expected to be $8 billion, up 13.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Eaton has been revised 0.5% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.32%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Eaton will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Duke Energy (DUK - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis electric utility is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of +3.2%.

Revenues are expected to be $7.71 billion, up 2.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.55% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Duke Energy?For Duke Energy, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.16%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Duke Energy will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Duke Energy would post earnings of $1.79 per share when it actually produced earnings of $1.93, delivering a surprise of +7.82%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Duke Energy appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Utility - Electric Power industry, Dominion Energy (D - Free Report) , is soon expected to post earnings of $0.74 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -1.3%. This quarter's revenue is expected to be $4.06 billion, up 6.6% from the year-ago quarter.

The consensus EPS estimate for Dominion Energy has been revised 3.8% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -5.41%.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Dominion Energy will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Etsy is expanding AI into conversational tools for gift discovery and seller decision-making.Etsy is partnering with OpenAI, Microsoft and Google to bring high-intent shoppers to its marketplace.ETSY shares rose 20.5% in three months, while its forward P/E of 14.05 trails the industry's 20.64. Etsy, Inc. (ETSY - Free Report) is taking a meaningful step forward in its artificial intelligence strategy by expanding beyond traditional recommendation engines into conversational experiences that directly support buyers and sellers. Rather than treating AI as a standalone feature, the company is integrating it across the marketplace to improve discovery, simplify decision-making, and reduce operational friction.

The buyer-facing conversational agent focuses on gift discovery, enabling shoppers to describe what they are looking for in natural language rather than relying solely on keyword searches. At the same time, Etsy has introduced a seller-focused agent that combines marketplace insights to help merchants make better business decisions, access relevant resources and streamline operations. These initiatives complement the company's broader investments in AI-powered discovery and matching, AI-generated buyer profiles and machine learning models that better connect shoppers with relevant inventory.

Beyond on-site tools, Etsy is also expanding its reach through off-site agentic commerce, partnering with major tech platforms including OpenAI, Microsoft, and Google. Recent developments include building an integrated Etsy App in ChatGPT and leveraging external channels to capture top-of-funnel traffic and drive high-intent shoppers directly to its marketplace.

By deploying conversational AI, Etsy is accelerating product development cycles, enabling new features to be built and iterated in weeks rather than months. This agility enables the platform to deepen buyer engagement, streamline seller operations and build a unique competitive advantage centered on personalization and human connection.

How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) is also embedding artificial intelligence deeper into its marketplace, but its strategy is centered on enhancing buyer engagement and seller productivity within its ecosystem. eBay has introduced Agentic Search, expanded AI-powered listing tools and strengthened personalized discovery experiences, with early testing showing higher search engagement and stronger purchase behavior. Rather than focusing on external agentic commerce partnerships, eBay is using AI to reduce marketplace friction, improve listing creation and deepen engagement, positioning eBay to drive incremental growth through a more intelligent shopping experience.

Shopify Inc. (SHOP - Free Report) is taking the most aggressive approach toward agentic commerce among e-commerce platforms. Shopify is enabling merchants to sell seamlessly across AI-powered channels such as ChatGPT, Microsoft Copilot and Google while advancing the Universal Commerce Protocol to support open agentic commerce. Early results are encouraging, with AI-driven traffic and orders rising sharply as merchants benefit from structured product data and unified commerce infrastructure. By positioning Shopify as the commerce backbone for AI agents, Shopify is aiming to capture long-term growth as conversational shopping becomes increasingly mainstream.

What the Latest Metrics Say About EtsyEtsy has seen its shares jump 20.5% over the past three months against the industry’s 10.4% decline. 
 

Image Source: Zacks Investment Research

From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 14.05, lower than the industry’s ratio of 20.64. ETSY is also trading below its 12-month median level of 19.99.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Etsy's earnings per share has been revised downward. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.44, while the estimate for the next fiscal year has moved down from $6.40 to 6.37 over the past 30 days.
 

Image Source: Zacks Investment Research

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

Key Takeaways Regeneron's Q2 may benefit from higher Dupixent profits and strong Eylea HD and Libtayo demand.REGN expects Eylea pressure to be offset by Eylea HD growth, label expansions and Lynozyfic uptake.Regeneron expanded buyback capacity and may provide updates alongside key pipeline progress. Investors will focus on profits from asthma drug Dupixent and sales of Eylea HD and Libtayo when biotech giant Regeneron Pharmaceuticals, Inc. (REGN - Free Report) , reports second-quarter 2026 results on July 30.

The Zacks Consensus Estimate for sales and earnings is pegged at $3.84 billion and $10 per share, respectively.

REGN’s Earnings Surprise HistoryThe company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 26.33%. In the last reported quarter, REGN beat on earnings by 11.15%.

What Our Model Predicts for REGNOur proven model predicts an earnings beat for Regeneron 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. This is the case here, as you will see below.

Earnings ESP: Earnings ESP for REGN is +1.22% as the Zacks Consensus Estimate is pegged at $10 per share, while the Most Accurate Estimate is pinned at $10.13. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Dupixent Profits Likely to Have Offset Eylea Decline in Q2A significant chunk of Regeneron’s revenues used to come from the sale of its lead drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema and macular edema, among others). Eylea was developed in collaboration with pharma giant Bayer.

While Regeneron records net product sales of Eylea in the United States, Bayer does the same outside the country. The company also records its share of profits/losses in connection with Eylea sales outside the country.

However, Eylea’s sales have been under pressure in recent quarters due to competition from Vabysmo and continued transition of patients to Eylea HD. Sales are likely to have declined in the second quarter as well.

The Zacks Consensus Estimate for Eylea sales in the United States is currently pegged at $388 million.

To counter the decline in Eylea sales, Regeneron developed a higher dose of the drug. The initial uptake of Eylea HD has been strong as Eylea patients transition to the higher dose.

Sales of Eylea HD are likely to have surged in the to-be-reported quarter on strong demand. This, in turn, is likely to have resulted in an increase in total Eylea franchise sales. The Zacks Consensus Estimate for Eylea HD sales in the United States is currently pegged at $548 million.

In November 2025, the FDA approved Eylea HD injection 8 mg for the treatment of patients with macular edema following retinal vein occlusion (RVO) with up to every eight-week dosing after an initial monthly dosing period.

The regulatory body also approved a monthly dosing option for some patients who may benefit from resuming this dosing schedule across approved indications — wet age-related macular degeneration, diabetic macular edema, diabetic retinopathy and RVO.

These label expansions are likely to have boosted drug sales.

Apart from Eylea, profits from the sales of asthma drug Dupixent are a primary growth driver for REGN. Regeneron has a collaboration agreement with Sanofi (SNY - Free Report) for drugs like Dupixent and Kevzara. While Sanofi records sales, Regeneron registers its share of profits in connection with the global sales of the aforementioned drugs.

Dupixent sales have likely increased driven by strong demand in all approved indications (atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis, prurigo nodularis, chronic spontaneous urticaria, chronic obstructive pulmonary disease, bullous pemphigoid). Hence, Regeneron is likely to have earned incremental profits from Dupixent in the to-be-reported quarter.

Meanwhile, Regeneron is also looking to diversify its revenue base to reduce its dependence on Eylea for top-line growth and build an oncology franchise, which currently comprises Libtayo and some newly approved drugs.

Growth in Libtayo’s sales has also boosted the top line in recent quarters. Libtayo sales are being driven by strong demand in advanced cutaneous squamous cell carcinoma (CSCC) and advanced non-small cell lung cancer, along with early contributions from its adjuvant CSCC indication, which secured FDA approval in the fourth quarter of 2025.

The trend has likely continued in the second quarter. The Zacks Consensus Estimate for Libtayo’s sales is currently pegged at $451 million.

Operating expenses have also likely increased in the quarter due to pipeline advancement and higher commercialization-related expenses related to Eylea HD and Libtayo.

The FDA had earlier approved linvoseltamab-gcpt for the treatment of relapsed or refractory (R/R) multiple myeloma (MM). The drug was granted accelerated approval by the FDA under the brand name Lynozyfic. It is also approved in the European Union (EU) to treat adults with R/R MM after at least three prior therapies, including a proteasome inhibitor, an immunomodulatory agent and an anti-CD38 monoclonal antibody.

Sales from this drug came in at $11 million in the first quarter. The company likely witnessed a sequential increase in the second quarter.

During the first quarter of 2026, the company repurchased $803 million of its common stock. As of March 31, 2026, it had $688 million remaining under its existing share repurchase authorization. In April 2026, the board approved a new $3.0 billion share repurchase program, significantly expanding its buyback capacity.

A decrease in the number of shares outstanding is likely to have boosted the bottom line. Investors will look forward to updates on the share buyback program.

REGN’s Key Pipeline UpdatesIn April 2026, the FDA granted accelerated approval to Otarmeni (lunsotogene parvec, formerly DB-OTO), the first therapy cleared under the FDA Commissioner's National Priority Voucher program. Otarmeni is an adeno-associated virus (AAV) vector-based gene therapy approved for pediatric and adult patients with severe-to-profound hearing loss caused by variants in the OTOF gene.

The FDA and the European Medicines Agency have accepted regulatory applications for cemdisiran to treat adults with generalized myasthenia gravis who are anti-acetylcholine receptor antibody-positive. The FDA granted Priority Review to the new drug application, with a target action date in November 2026 following the use of a Priority Review Voucher. A decision from the European Commission is expected in the second half of 2027.

REGN’s Share Price PerformanceRegeneron’s shares have lost 13.6% year to date against the industry’s growth of 1.8%.

Image Source: Zacks Investment Research

Other Stocks to ConsiderHere are some other drug and biotech stocks that also have the right combination of factors to deliver an earnings beat this time around:

Harmony Biosciences (HRMY - Free Report) has an Earnings ESP of +14.14% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of HRMY have gained 16% in the past three months. The company missed on earnings in each of the trailing four quarters, delivering an average negative surprise of 25.16%. HRMY is scheduled to report second-quarter results on Aug. 4.

Bristol Myers Squibb (BMY - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 3 at present.

BMY beat on earnings in each of the trailing four quarters, delivering an average surprise of 16.47%. BMY is scheduled to report second-quarter results on July 30.

There are few better examples of a gap between a company's performance and its share price right now than ServiceNow Inc. NYSE: NOW. The enterprise software giant has spent a year selling off on fears that artificial intelligence will eventually make its business obsolete, and yet the numbers it just delivered tell a completely different story.

ServiceNow Today

$110.51 +4.95 (+4.69%)

As of 12:28 PM Eastern

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

52-Week Range$81.24▼

$201.15P/E Ratio69.21

Price Target$143.39

Last week, the company reported second-quarter results that comfortably beat expectations, with revenue growing at a rapid clip and management confident enough to raise its full-year outlook. Despite that, the stock barely moved and is trading just above its pre-earnings level, while still deep in the red for the year, weighed down by a narrative that its own results keep contradicting.

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For investors willing to look past the fear, however, that disconnect may be creating one of the more interesting opportunities in enterprise software.

The Fear Weighing on the StockTo understand the opportunity, it helps to understand the fear. Like with many traditional software stocks, ServiceNow has been caught up in the software sector's "existential AI problem"—the worry that AI agents will eventually do the work software handles today, reducing the need for the companies that make it.

It's the same anxiety that has hammered enterprise software valuations across the board this year, and on paper, ServiceNow looks like an obvious target. Much of its business has historically been sold on a per-seat basis, exactly the model the bears argue is most exposed to AI disruption. That fear has pushed the stock sharply lower over the course of the year, even as the underlying business has continued to grow.

What the Report Actually ShowedThe thing is, though, rather than showing any sign of core demand evaporating, ServiceNow's latest results pointed in the opposite direction. Revenue grew more than 24% year-over-year, its fastest pace in more than two years, and management made it clear with raised forward guidance that they’re expecting this momentum to stick around.

These metrics would be flashing red if AI were truly eroding the business, as the bears have been saying. Instead, ServiceNow’s large deal activity actually accelerated, with a sharp year-over-year increase in the number of major new contracts signed, and customer renewal rates remained near the very top of what any software company could hope for.

Perhaps most importantly, ServiceNow's own AI offerings crossed a major milestone during the quarter, passing $1 billion in annual contract value. As we’ve seen with some of its peers, ServiceNow is far from a victim of AI; it has actually been quietly becoming one of its beneficiaries.

Why AI May Be an Opportunity, Not a ThreatThis gets to the heart of why the disruption thesis may have it backward. Rather than being displaced by AI, ServiceNow is steadily shifting its model to sell it, moving from purely per-seat pricing toward a consumption-based approach that charges for the AI work its platform performs.

That's a crucial distinction. Under a consumption model, the more AI-driven work customers run through the platform, the more ServiceNow earns, which turns the very technology that bears fear into a fresh growth engine. Instead of AI shrinking the amount customers pay ServiceNow, it could expand it, and early adoption figures suggest that shift is already gaining real traction.

In that context, the question is no longer whether ServiceNow can survive the rise of AI agents, but how much additional revenue it can generate by powering them.

What It Means for the StockServiceNow Stock Forecast Today12-Month Stock Price Forecast:
$143.39
30.83% Upside

Moderate Buy
Based on 42 Analyst Ratings

Current Price$109.60High Forecast$248.00Average Forecast$143.39Low Forecast$72.00ServiceNow Stock Forecast Details

For all those promising signs, however, the market has been slow to update its view. The stock sold off in the aftermath of last week’s report, but is already up nearly 15% from those lows, and, importantly, above its pre-earnings level.

That’s a promising sign for those of us willing to lean into the bullish thesis, as is the fact that the analyst community certainly hasn't lost faith. Following the results, the likes of Evercore, UBS Group and Sanford Bernstein all reiterated bullish ratings, and the stock carries a healthy consensus rating of Moderate Buy on MarketBeat.

Indeed, some of the recently refreshed price targets are nearly reason enough to consider getting involved, like UBS Group’s $248 target, which implies as much as 125% upside from current levels. For those looking to get in on the ground floor of what could be the mother of all comebacks, this is what an entry opportunity looks like.

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GSK PLC (LSE:GSK, NYSE:GSK) shares jumped to a three-month high after the drugmaker beat second-quarter expectations across its main measures and accelerated investment in its pipeline.

Revenue rose 5% to £8.41 billion, ahead of the £8.25 billion City consensus. Adjusted earnings per share increased 9% to 50.5p, beating the 46.8p forecast by almost 8%.

Vaccines sales grew 8% to £2.28 billion, compared with expectations of £2.1 billion. Shingrix revenue reached £888 million, topping the £867.8 million consensus, while sales of respiratory syncytial virus vaccine Arexvy more than doubled.

Specialty Medicines also performed strongly, with sales up 14%. Respiratory, Immunology & Inflammation advanced 19%, Oncology rose 17% and HIV increased 10%. General Medicines declined 9%, however.

GSK reaffirmed its full-year guidance, expecting sales growth in the upper half of its 3%-5% range and core operating profit growth in the upper half of its 7%-9% range. Core earnings growth is forecast in the lower half of the 7%-9% range.

The company plans to more than double its phase III trial starts this year to over 20, accelerating seven late-stage assets across 18 indications. It also said it remains "on track" to generate more than £40 billion of annual sales by 2031.

A three-year restructuring programme was announced, targeting £1.9 billion of annual savings by 2029, with most reinvested in research and development.

Statutory operating profit fell 75% after a £1.3 billion impairment linked mainly to cough drug camlipixant. GSK declared a 17p quarterly dividend.

The shares surged 6% to 2,080p, their highest since mid-April.

Analysts at Jefferies hailed a second quarter "of good quality", with vaccines and specials more than offsetting softer general medicines.

"Better product mix more than offsets higher opex leaving core operating income 5% ahead and core EPS 7% beat."

The cost-cutting plan was seen as "surprisingly strong", about double what was expected.

"The aim of the program is to protect the margin through the patent cliff but also to restructure the business and move R&D from Stevenage to Cambridge. With over double the number of Phase III trial initiations expected in 2026 to 20+, reinvestment will be part of it but this is a strong and unexpected move."

  ** UPDATE: Adds broker comment **

Key Takeaways Roblox is expected to benefit from higher user engagement, spending and international growth.RBLX is expanding AI tools, creator features and communication capabilities to boost monetization.Higher investment spending and slower bookings growth may continue to pressure profitability. Roblox Corporation (RBLX - Free Report) is scheduled to report second-quarter 2026 results on July 30, after the closing bell.

RBLX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 20.5%.

Trend in the Estimate Revision of RBLXThe Zacks Consensus Estimate for second-quarter loss is currently pegged at 33 cents per share, narrower than the loss of 41 cents reported in the prior-year quarter.

For revenues, the consensus mark is pinned at nearly $1.59 billion. The metric implies an increase of 10.6% from the year-ago quarter’s figure.

Let’s take a look at how things have shaped up in the quarter.

Factors Likely to Shape Roblox’s Q2 ResultsRoblox's second-quarter 2026 top line is likely to have benefited from sustained user spending and healthy engagement across its platform. Management noted that monetization and retention remained resilient despite softer new-user additions, indicating that existing users continued to spend at solid levels.

A larger base of monthly unique payers, stronger engagement across a wider range of experiences beyond the top 10 games and improving content diversity might also have supported bookings. In addition, robust user growth in international markets, particularly Japan and India, along with steady expansion in the United States and Canada, is likely to have provided an additional boost to revenues.

Revenue growth might also have been supported by Roblox's continued investments in platform innovation and creator tools. The rollout of AI-powered development capabilities, enhancements to game discovery that prioritize long-term engagement, and new communication features such as Global Chat and integrated party chat were designed to improve the user experience. At the same time, initiatives aimed at attracting higher-spending adult users, including enhanced creator incentives for 18+ experiences and partnerships with established game studios, are expected to have contributed to stronger monetization during the quarter.

The Zacks Consensus Estimate for the Daily Active Users is currently pegged at approximately 128.2 million, up from 111.8 million reported in the year-ago quarter. Meanwhile, hours engaged are expected to come in at 33.2 billion, compared with 27.4 billion in the prior-year period.

Profitability is likely to have been pressured by elevated investment spending and lower operating leverage. Management indicated that slower growth in bookings would reduce fixed-cost absorption, while increased investments in proprietary AI capabilities, cloud infrastructure and higher DevEx payouts for qualifying 18+ creators are expected to have weighed on margins. Although these initiatives are intended to strengthen Roblox's long-term growth prospects, they are likely to have constrained bottom-line performance in the second quarter.

What Our Model Says About RBLX StockOur proven model doesn’t predict an earnings beat for Roblox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Roblox’s Earnings ESP: Roblox has an Earnings ESP of +1.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Roblox’s Zacks Rank: The company has a Zacks Rank #4 (Sell) at present.

Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Life Time Group is expected to register a 21.6% increase in earnings for the to-be-reported quarter. LTH reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 10.9%.

 Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +1.88% and a Zacks Rank of 3.

MAR’s earnings for the to-be-reported quarter are expected to increase 15.5%. Marriott reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 1.5%.

 Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +6.40% and a Zacks Rank of 3.

 CNK’s earnings for the to-be-reported quarter are expected to increase 57.1%. Cinemark reported lower-than-expected earnings in each of the trailing four quarters, the average miss being negative 20.4%.

Cyber threats are escalating faster than most enterprise budgets can absorb, and the platform vendors capturing the largest share of that spend are pulling away from the pack. AI-generated phishing, ransomware, and identity attacks are pushing CISOs toward consolidated security stacks.

That is showing up cleanly in the numbers for the three names below. Each is US-listed on Nasdaq, each posted a beat-and-raise quarter, and each has a defensible moat that will benefit them in the second half of 2026.

CrowdStrike (CRWD) CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) is the AI-security bellwether, and Q1 FY27 confirmed the recovery from the July 2024 Falcon sensor incident is complete on the operating side. Revenue hit $1.39 billion, up 25.6% year over year, beating the $1.36 billion consensus. Non-GAAP EPS of $1.10 topped the $1.07 estimate, marking eight consecutive EPS beats. Net new ARR came in at a record Q1 $255.8 million, up 32%, pushing total ARR to $5.51 billion, up 24%. Free cash flow reached $468.5 million, a 34% FCF margin.

The bull case is platform depth. 51% of customers now run six or more modules, Charlotte AI is monetizing, and the QuiltWorks coalition with OpenAI and Anthropic positions Falcon as connective tissue for enterprise AI deployments. CEO George Kurtz framed the quarter bluntly: “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption.” Management raised FY27 revenue guidance to $5.91 billion to $5.96 billion. The stock split 4-for-1 on July 2, and shares are up 60.45% year to date on a split-adjusted basis.

Risk: Legal and remediation costs tied to the 2024 outage still linger, stock-based comp ran $317.6 million in Q1, and forward valuation is rich at roughly 159x forward earnings. That is the price of leadership.

Fortinet (FTNT) Fortinet (NASDAQ:FTNT) is the value-relative name in this trio, and the Q1 FY26 report made the hardware refresh cycle impossible to ignore. Revenue of $1.85 billion rose 20.1% year over year and cleared consensus by 6.68%. Non-GAAP EPS came in at 82 cents versus the 62-cent estimate, a 32.26% surprise, the largest beat in five quarters. Product revenue jumped 41% to $645.1 million, billings grew 31% to $2.09B, and free cash flow hit a record $1.01 billion.

Fortinet holds the #1 firewall position with 55% unit market share, and FortiOS 8.0 introduced AI-driven and quantum-safe capabilities alongside the new FortiGate G Series. Partnerships with Anthropic (Project Glasswing), OpenAI, NVIDIA and Google Unified Security widen the SASE and AI security surface area. Margins are best-in-class: 80.8% gross margin, 30.6% operating margin and 27.3% net margin. Management raised FY26 revenue guidance to $7.71 billion to $7.87 billion.

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Shares are up 95.5% year to date, trading at roughly 53x forward earnings. CEO Ken Xie summarized the setup: “Billings grew 31% year over year, driven by the continued convergence of networking and security, an approach Fortinet has led for 26 years, and by an increasingly complex threat environment that is being intensified by AI.”

Risk: Tariff exposure and longer enterprise sales cycles could pressure the hardware line if macro softens.

Palo Alto Networks (PANW) Palo Alto Networks (NASDAQ:PANW) is the platformization story, and Q3 FY26 was the clearest evidence yet that the strategy is working. Revenue of $3 billion grew 31.1% year over year, beating the $2.94B consensus. Non-GAAP EPS landed at 85 cents versus the 80 cents expected. The signature metric, Next-Generation Security ARR, reached $8.1 billion, up 60% year over year. Remaining performance obligation climbed to $18.4 billion, up 36%. Free cash flow of $788 million supported a trailing 12-month adjusted FCF margin of 38.5%, and management is targeting 40% by FY28.

The CyberArk and Chronosphere acquisitions contributed $388 million to Q3 revenue, extending Palo Alto into identity and observability. CEO Nikesh Arora tied the momentum directly to AI: “Q3 was a standout quarter for Palo Alto Networks, with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.” Q4 revenue guidance of $3.345B to $3.355B implies roughly 32% growth. Shares are up 78.54% year to date.

Risk: Q3 carried a GAAP operating loss of $183 million because of acquisition-related costs, share-based comp ran $517 million, and the trailing P/E sits at roughly 257. Integration risk on CyberArk and Chronosphere is the swing variable through fiscal year-end.

What to Watch Next The July setup favors the platform leaders. Ransomware activity is intensifying, enterprises are consolidating vendors, and the three names above are converting that shift into ARR, FCF and raised guidance. Watch net new ARR at CrowdStrike, product revenue at Fortinet as the hardware refresh runs, and NGS ARR at Palo Alto Networks for confirmation that the second-half thesis holds.

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Contact [email protected] for any questions or corrections.

Devon Energy (DVN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas exploration company is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of +54.8%.

Revenues are expected to be $6.3 billion, up 47% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 9.03% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Devon Energy?For Devon Energy, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.61%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Devon Energy will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Devon Energy would post earnings of $1 per share when it actually produced earnings of $1.04, delivering a surprise of +4.00%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Devon Energy appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerVitesse Energy (VTS - Free Report) , another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $0.06 for the quarter ended June 2026. This estimate points to a year-over-year change of -90%. Revenues for the quarter are expected to be $90.9 million, up 11.2% from the year-ago quarter.

The consensus EPS estimate for Vitesse has been revised 22.2% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #5 (Strong Sell), makes it difficult to conclusively predict that Vitesse will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Ecolab (ECL - Free Report) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +0.48%. A quarter ago, it was expected that this cleaning, food-safety and pest-control services company would post earnings of $1.7 per share when it actually produced earnings of $1.7, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Ecolab, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $4.42 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.40%. This compares to year-ago revenues of $4.03 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ecolab shares have added about 3.4% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Ecolab?While Ecolab has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ecolab was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.15 on $4.7 billion in revenues for the coming quarter and $8.18 on $17.88 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Mativ Holdings (MATV - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This paper and reconstituted tobacco company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -15.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Mativ Holdings' revenues are expected to be $508.5 million, down 3.2% from the year-ago quarter.

The market expects Upstart Holdings, Inc. (UPST - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +61.1%.

Revenues are expected to be $354.89 million, up 37.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Upstart?For Upstart, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -13.79%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Upstart will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Upstart would post earnings of $0.39 per share when it actually produced earnings of $0.30, delivering a surprise of -23.08%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Upstart doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsPiper Sandler Companies (PIPR - Free Report) , another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $0.85 for the quarter ended June 2026. This estimate points to a year-over-year change of +14.9%. Revenues for the quarter are expected to be $430.53 million, up 6.2% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for PIPER SANDLR CP has remained unchanged. Nevertheless, the company now has an Earnings ESP of +4.14%, reflecting a higher Most Accurate Estimate.

When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that PIPER SANDLR CP will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to SellJetBlue Airways NASDAQ: JBLU said second-quarter revenue rose 10.9% from a year earlier as demand remained resilient across its network, including premium and main-cabin products, despite higher fares and operational disruptions from thunderstorms, air traffic control staffing constraints and elevated fuel prices.

Chief Executive Officer Joanna Geraghty said the airline’s JetForward turnaround plan continued to produce measurable financial benefits. JetBlue generated $165 million of incremental EBIT from the program in the first half of 2026, bringing cumulative benefits to $470 million. The company reiterated its expectation for at least $310 million of incremental EBIT from JetForward this year.

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Travel Demand Soars Despite Fuel Costs—Are Airline Stocks a Buy?“JetForward is doing exactly what we said it would do,” Geraghty said, adding that the airline expects the initiative to support a return to sustained operating profitability in 2027.

Outlook Restored as Demand Holds Up JetBlue restored its full-year outlook after withdrawing it in the prior quarter amid a rapidly changing external environment. The company now expects a full-year operating margin between negative 2% and negative 5%, with the midpoint implying second-half operating-margin improvement of about 3.5 percentage points from a year earlier.

Work and Play: Investing in the Rise of Bleisure TravelFor the third quarter, JetBlue forecast capacity growth of 3% to 6% year over year and revenue per available seat mile, or RASM, growth of 12.5% to 16.5%. For the full year, it projected capacity growth of 1.5% to 3.5% and RASM growth of 10% to 12.5%.

President Marty St. George said consumer demand remained strong throughout the booking curve, including close-in travel, and that the trend had continued into the third quarter. He said JetBlue did not see material signs that higher fares were reducing demand.

The company said it recovered nearly 50% of higher fuel costs through pricing and capacity actions during the second quarter, above its previous expectation of at least 40%. JetBlue continues to target 100% fuel-cost recapture by early 2027, assuming demand remains strong.

Using the forward fuel curve as of July 10, Chief Financial Officer Ursula Hurley said the airline expected fuel prices of $3.49 per gallon for both the third quarter and full year. JetBlue widened its operating-margin outlook range because of fuel-price volatility.

Fort Lauderdale Expansion Takes Center Stage JetBlue is concentrating its incremental network growth in Fort Lauderdale, where it has moved to expand following Spirit Airlines’ exit from the market. The airline expects to operate more than 150 daily flights from Fort Lauderdale by the end of 2026 or early 2027, representing its largest schedule ever at the airport and its largest Mint presence there.

Fort Lauderdale revenue increased 11% in the second quarter despite capacity growth of nearly 40%, according to St. George. The airline recently introduced a more structured schedule with two southbound and two northbound banks intended to improve connections to the Caribbean and Latin America.

JetBlue said all of its net capacity growth in the second half is expected to come from Fort Lauderdale, while capacity across the rest of the network is expected to decline year over year. The company reduced its fourth-quarter schedule by approximately one point in mid-July as fuel prices rose.

The airline is working with Broward County Aviation Department on additional gate leases, although St. George said international arrivals remain constrained at the airport. JetBlue is also pursuing a return to LaGuardia Airport’s Marine Air Terminal, which executives said would offer lower operating costs than Terminal B.

BlueFirst and Loyalty Initiatives Expected to Build JetBlue plans to begin selling its new domestic first-class product, BlueFirst, this fall. St. George said the first aircraft equipped with BlueFirst may not be monetized, but the airline expects to begin selling the product once a second aircraft enters service. Most retrofit work is expected to be completed by the end of 2027, with the full revenue and margin contribution building in 2028 and beyond.

At full run rate, JetBlue expects BlueFirst to support nearly five points of RASM growth. St. George said the contribution will be minimal in the fourth quarter of 2026 and that a full run rate is more likely in late 2028 or 2029.

The company also reported momentum in loyalty. New card acquisitions rose nearly 40% during the quarter, while loyalty remuneration increased 21%. In South Florida, TrueBlue enrollments grew 44% and co-brand acquisitions more than doubled year over year.

JetBlue said its Blue Sky partnership reached a milestone in May with reciprocal loyalty benefits for elite members. Paisly, the company’s travel-products platform, has begun distributing United’s car-rental products through the Paisly-powered Miles+ travel offering and plans to add hotel offerings later this year.

Costs, Liquidity and Longer-Term Targets Second-quarter CASM excluding fuel increased 2.4% year over year, about 1.5 points better than the midpoint of JetBlue’s guidance. The airline expects third-quarter CASM ex-fuel growth of 2.5% to 4.5% and full-year growth of 2% to 4%.

Hurley cited digital tools, technology modernization and broader use of data science in operations as key sources of cost savings. JetBlue said it expects non-fuel unit-cost growth to moderate in the second half as JetForward savings initiatives take hold.

The company completed a $500 million aircraft-backed financing transaction during the quarter and ended the period with $2.2 billion in cash and investment securities, excluding a $600 million undrawn credit facility. Hurley said the financing carried an average rate of 6.5% and includes a $250 million accordion feature at the same rate.

JetBlue also reached an initial $105 million settlement with Pratt & Whitney covering 2024 and 2025 disruptions. Hurley said 80% of the settlement will reduce operating expense through the end of 2027, while 20% will reduce capital expenditures. About 25% of the settlement is expected to affect 2026, with the remainder affecting 2027.

Looking further ahead, JetBlue expects JetForward to generate $850 million to $950 million of incremental EBIT by the end of 2027 and approximately $1.2 billion annually in 2028 and beyond. The company said it targets at least $1 in earnings per share in 2028, based on continued demand strength and an assumed average jet-fuel price of $3 per gallon.

About JetBlue Airways (NASDAQ:JBLU)JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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