Senátoři Richard Blumenthal a Josh Hawley žádají Google o vysvětlení rizik využívání AI ve školách pro duševní zdraví a studijní výsledky dětí; odpověď požadují do 2. listopadu.
Google is facing a bipartisan Senate grilling over its aggressive push to put artificial intelligence in American classrooms amid mounting concerns that the technology could harm students’ academic performance and mental health.
Sens. Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) sent a letter Wednesday to Google CEO Sundar Pichai demanding answers about what the search giant knows about the potential risks its AI products pose to children, as first reported by the Wall Street Journal.
The two lawmakers wrote in the letter that they harbored “grave concern” that Google’s “aggressive push of AI products to children in schools is threatening the academic success and overall wellbeing of an entire generation.”
Google’s aggressive push to put artificial intelligence in classrooms has drawn Senate questions amid fears the technology is harming students. dpa/picture alliance via Getty Images
Blumenthal and Hawley demanded to know the extent of Google’s knowledge about those potential harms and why the company has made AI integration the default on educational devices.
In one of their most pointed demands, the senators asked whether Google has identified instances in which its classroom AI tools “encouraged a minor to engage in harmful behavior, emotional dependence, or failed to detect signs of suicidal or self-harm ideation.”
Sen. Josh Hawley (R-Mo.) joined his Democratic colleague in demanding answers about Google’s AI products and their potential impact on children’s mental health. Getty Images
The lawmakers also pressed Google to explain what safeguards it has implemented to prevent chatbots from engaging in inappropriate emotional exchanges with children, citing the case of a Maryland teenager who was hospitalized after developing an intense dependence on the company’s AI.
They demanded an accounting of Google’s promotional efforts to expand AI adoption in schools, including how much the company has spent on such programs.
“Google is forcing their AI products into classrooms across America, and children are paying the price,” Blumenthal and Hawley wrote in the missive, a copy of which was obtained by The Post.
The inquiry follows a bombshell Sept. 30 investigation by the Journal that detailed how Google’s AI tools have fueled academic and emotional dependence among students, raising questions about the company’s efforts to promote the technology despite warnings from its own researchers.
Sen. Richard Blumenthal (D-Conn.) demanded that Google disclose whether its AI tools have encouraged harmful behavior or emotional dependence among children. Getty Images
The newspaper interviewed more than 60 teachers, school administrators, parents, students and clinicians who described children increasingly relying on AI to complete assignments, answer basic questions and navigate personal problems.
Google’s researchers have also warned that the technology could undermine children’s cognitive development and emotional well-being, according to the Journal’s review of more than a dozen company research papers and interviews with current and former employees.
“Children need opportunities to work through uncertainty, make mistakes and discover that they can solve problems with support,” behavioral scientist Dr. Abbie Maroño told The Post.
“If AI repeatedly supplies the answer before they have tried, it can remove opportunities to develop those skills.”
Maroño also warned that chatbots can create a misleading sense of trust through their reassuring responses.
Google CEO Sundar Pichai has until Nov. 2 to answer lawmakers’ questions about potential risks posed by the company’s AI tools in classrooms. Bloomberg via Getty Images
“A response can feel caring without being accurate or appropriate for that child,” she said.
“Systems should be independently tested for how they respond to distress, repeated reassurance-seeking and a child treating the chatbot as their only source of support.”
Google has insisted that its Gemini chatbot has special safeguards to prevent children from developing emotional attachments to the technology or receiving responses that reinforce potentially harmful beliefs.
In an April 7 policy statement, Google outlined “protections designed to prevent Gemini from acting like a companion,” along with safeguards intended to discourage emotional dependence by avoiding “language that simulates intimacy or expresses needs.”
The company also said it had trained Gemini “not to agree with or reinforce false beliefs,” instead steering users toward objective information and real-world support.
Google said it was introducing a simplified “one-touch” interface designed to connect users experiencing suicidal thoughts or other mental health crises with professional support through calls, texts or online chats.
Google’s Gemini chatbot has come under scrutiny after reports that students increasingly rely on AI for schoolwork and emotional support. AFP via Getty Images
The company also announced that its philanthropic arm, Google.org, would provide $30 million over three years to support crisis hotlines worldwide.
Google acknowledged that AI presents new mental health challenges and cautioned that Gemini “is not a substitute for professional clinical care, therapy, or crisis support for those who need it.”
The senators gave the company a Nov. 2 deadline to provide answers.
Jefferies očekává, že automatizace skladů posílí dlouhodobé marže Amazonu; vysoce automatizováno je zatím jen 40–45 % amerických distribučních center pro malé zásilky.
Amazon.com Inc (NASDAQ:AMZN) could strengthen its retail margins through warehouse automation and an expanding logistics network, as investments in fulfillment capacity and third-party parcel delivery create new opportunities, according to Jefferies.
Following a discussion with a logistics industry expert, the broker said automation remains a key long-term competitive advantage for Amazon, helping reduce its exposure to labour shortages and wage inflation even if immediate cost savings prove limited.
Amazon has deployed more than 1 million robots, but the expert estimates only 40% to 45% of its US small-sortable fulfillment centers are highly automated, suggesting considerable room for further adoption.
Newer facilities can process around 1 million units on peak days with approximately 1,000 workers, compared with 2,500 to 3,000 historically. A US$1 hourly increase in warehouse and driver wages would add an estimated US$1.1 billion to operating expenses, highlighting the value of reducing labor dependency.
Jefferies also sees renewed investment in retail logistics, with gross logistics space additions rising from 56 million square feet in 2025 to 81 million in 2026. Amazon has around US$27 billion in visible capital expenditure planned over the next couple of years, covering automated fulfillment centers, inbound cross-docks and delivery infrastructure.
The broker identified third-party parcel delivery as another potential growth area. Amazon could expand its US delivery stations from approximately 575 to 950 by 2030, allowing it to handle more shipments currently managed by UPS and the US Postal Service.
Early trials reportedly show 20% to 25% savings for business-to-consumer shippers, partly because Amazon avoids some residential, weekend and package surcharges charged by established carriers. However, execution during peak shopping periods remains a key test.
Grocery presents a more difficult challenge. Delivery costs of US$10 to US$12 per order make smaller baskets challenging to profitably serve.
Jefferies sees potential in Amazon's planned Illinois hybrid retail and fulfillment concept, expected in 2028, which would combine large-format shopping with automated rapid delivery.
The broker remains constructive on Amazon's margin outlook, expecting fulfillment efficiencies and AWS operating leverage to offset the structural challenges of its retail business.
Společnost Anthropic získala v první polovině roku 2026 přibližně pětinu svých tržeb od dvou zákazníků, údajně společností SpaceX a Microsoft, aniž by s nimi měla dlouhodobé smlouvy.
Anthropic, one of the world's fastest-growing AI companies, plans to go public by the end of the year. It's reportedly targeting a $2 trillion valuation, which would make it the largest IPO in history and one of the world's most valuable companies.
However, the recent leaks from its confidential S-1 filing reveal some bright red flags. In the first half of 2026, it reportedly generated $16.3 billion in revenue, but it posted a staggering net loss of $80.7 billion. $72 billion of that loss came from non-cash accounting charges, but it still raises troubling questions about its claim to have achieved "adjusted" profitability in its third quarter.
Image source: Getty Images.
Moreover, about a fifth of its revenue in the first half of 2026 came from just two customers. Anthropic didn't name either company in its S-1 filing, but several industry reports have identified them as SpaceX (SPCX +7.80%) and Microsoft (MSFT +0.20%). Let's see why these two companies rely on Anthropic, and if that concentration is a major long-term risk.
Why are SpaceX and Microsoft relying on Anthropic? SpaceX's AI business acquired Cursor, an AI coding start-up, for $60 billion in August. Cursor's AI-first code editor allows its users to access Anthropic's Claude AI models.
SPCX Space Exploration Technologies$159.31+$11.52 (+7.80%)
NASDAQ · As of 4:00 PM ET 10/21/26
Microsoft integrates Claude into GitHub Copilot, an AI-powered programming assistant initially developed by GitHub and OpenAI. As GitHub expanded its platform to include other AI models, millions of developers routed their requests through Claude.
Anthropic generates revenue whenever those platforms access Claude's API (application programming interface). As more developers use Claude's tools on Cursor and GitHub Copilot to accelerate their programming tasks, Anthropic's revenue will keep rising.
Is this a major risk for Anthropic? Claude's programming models (especially Sonnet and Opus) are widely regarded as the best AI tools for generating complex code, so even though Cursor and GitHub Copilot users can select other AI models -- including OpenAI's GPT, Alphabet's Google Gemini, and SpaceX/xAI's Grok -- the vast majority of programmers still use Claude.
But according to Anthropic's S-1 filing, its largest customers access its models on a usage-based basis with no long-term contracts. Therefore, if any of Anthropic's competitors catch up and launch comparable coding models at lower prices, its revenue could plummet. If that competition forces it to reduce its prices, its net losses will likely widen.
Anthropic will inevitably attract a lot of attention when it finally goes public. But just like SpaceX, that sentiment could cool off when investors start to notice its glaring weaknesses.
Bank of America vyplatí 24. prosince 2026 čtvrtletní dividendu ve výši 0,32 USD na jednu kmenovou akcii akcionářům evidovaným k rozhodnému dni 4. prosince 2026.
, /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.32 per share, payable on December 24, 2026 to shareholders of record as of December 4, 2026.
The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on January 25, 2027 to shareholders of record as of January 11, 2027.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Investors may contact
Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]
Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]
Reporters may contact
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected]
Bank of America s okamžitou platností jmenovala členy svého představenstva Jima Fitterlinga, výkonného předsedu společnosti Dow, a Billa Thomase, bývalého šéfa KPMG International.
, /PRNewswire/ -- The Bank of America Corporation Board of Directors today appointed Jim Fitterling and Bill Thomas as directors, effective immediately.
Jim Fitterling and Bill Thomas
"We are pleased to welcome two seasoned CEOs, who join our Board after leading large, global organizations," said Brian Moynihan, Chair and Chief Executive Officer, Bank of America. "Jim brings decades of experience in a complex, evolving industry and significant public company board credentials, while Bill brings deep financial expertise in audit, accounting and financial reporting, advising businesses across industries and around the world."
"Jim and Bill are valuable additions to our Board, with complementary leadership experience that will help strengthen our oversight of the company's long-term strategy," said Lionel Nowell III, Lead Independent Director, Bank of America. "We have a longstanding, robust succession planning and board refreshment process, which has produced two outstanding leaders to join our Board."
Mr. Fitterling, 65, is Executive Chairman of the Board of Directors of Dow Inc., a global materials science company. From 2018 to 2026, Mr. Fitterling served as Chief Executive Officer of Dow, and he was elected Board Chair in 2020. Previously, Mr. Fitterling served as President and Chief Operating Officer of Dow. From September 2017 through March 2019, he also served as Chief Operating Officer for the Materials Science Division of DowDuPont.
During his tenure as Chief Executive Officer, Mr. Fitterling led Dow's transformation toward higher-growth markets driven by customer needs and innovation, while overseeing significant capital-intensive international operations, global supply chains and exposure to cyclical markets.
Mr. Fitterling began his career at Dow more than 40 years ago following his graduation from the University of Missouri-Columbia with a bachelor's degree in mechanical engineering.
He has served on the Board of Directors of 3M since 2021 and was named lead director in 2024. Mr. Fitterling has also served as chair of the National Association of Manufacturers and the American Chemistry Council, as well as a member of the World Economic Forum's International Business Council.
Mr. Thomas, 58, served as Global Chairman and Chief Executive Officer of KPMG International, a global organization of independent professional services firms providing audit, tax and advisory services, from 2017 to 2026. In this role, Mr. Thomas led KPMG's network of 265,000 professionals, across 143 countries. Prior to this, Mr. Thomas was the Chairman of KPMG's Americas region from 2014 to 2017, and CEO and Senior Partner of KPMG in Canada from 2009 to 2016. He became a member of KPMG's Global Board in 2009.
During his tenure as Global Chairman and Chief Executive Officer, Mr. Thomas led the organization through a period of significant transformation and growth, aligning member firms behind shared strategic priorities, refreshing the organization's governance and overseeing a multibillion-dollar investment program focused in part on technology and AI-enabled capabilities.
With nearly four decades of experience in audit, accounting and financial reporting, Mr. Thomas is a chartered accountant and has been a Fellow of the Institute of Chartered Accountants of British Columbia since 2008. He holds a Bachelor of Science degree in chemistry from the University of British Columbia.
Mr. Thomas has served as a member of the International Integrated Reporting Council, the Business Roundtable, the World Economic Forum's International Business Council, FCLTGlobal and the Global Public Policy Committee.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Jessica Oppenheim, Bank of America
Phone: 1.646.855.1600
[email protected]
Walmart spustil Agent Gateway, který schváleným AI agentům umožní vyhledávat zboží a nakupovat za zákazníky. Příští měsíc začne zavádět profily agentů s nastavenými limity a kontrolami.
Walmart is embracing agentic commerce with the launch of its own Agent Gateway to manage transactions and other new features aimed at customers using AI agents, the retailer announced on Wednesday. The move comes shortly after Walmart’s top competitor, Amazon, began blocking AI agents from making purchases on behalf of online shoppers.
The company’s embrace of AI technology differentiates it from other online businesses, including not only Amazon but also various travel and booking sites, which have responded to the growing consumer adoption of AI agents by locking them out of their websites completely. Walmart, on the other hand, had already announced a partnership with a leading agent in the space, Meta’s Muse, and offers integrations with popular AI apps like ChatGPT, Gemini, and others.
Now, it’s expanding on those efforts with more technology to prepare for a world where AI agents become mainstream, said Walmart President and CEO John Furner, speaking at the Masters of Scale Summit in San Francisco on Wednesday. The technology will support agentic shopping from both Walmart and the company’s discount warehouse, Sam’s Club.
It starts with Walmart’s Agent Gateway, the company’s new MCP server, which is designed to help approved agents connect to Walmart over the model context protocol (MCP). The protocol, originally created by Anthropic, allows AI agents to connect to external data sources, tools, and other workflows. In this case, it lets an AI agent search across Walmart’s online inventory and make purchases on behalf of the agent’s user.
What’s more, the retailer says that its Agent Gateway will be able to help customers shop for their usual brands or items without having to share their personal information or purchase history directly with the agent.
The company has also developed new technology to differentiate an agent’s purchases from those initiated directly by the customer, and to give shoppers more control over what their agents can and cannot do.
With Agent Profiles, rolling out next month, customers will be able to authorize each AI agent they use with a dedicated profile in their account, allowing them to see the agent’s purchases separately from their own. Plus, customers will be in control of how purchases get approved by either requiring approval for each transaction or by authorizing transactions within a certain spending limit they set.
The retailer says these controls are similar to adding someone as an authorized user on your credit card, where their transactions are identified, and you can cap their spending.
The Agent Profiles will be created the first time you use a given agent to shop through the Walmart Agent Gateway, the company notes. To get started, you’ll authorize and link the Agent Profile to your Walmart account, then set your controls or spending limits. You can also delete an Agent Profile at any time. Agent support is available for anyone with a Walmart account; a Walmart+ membership is not necessary.
Alongside these technologies, Walmart is introducing special “terms” for AI agents, which specify how they must operate and what rights they have to transact on its site. Of note, Walmart says that its returns process applies, including when an agent doesn’t act as intended. That’s a customer-friendly condition that could sway consumers who were worried about being an early tester of agentic commerce, as they won’t fear ending up with products they don’t want because of a misbehaving agent.
Walmart also says that agents can’t take actions beyond what the shopper intends, can’t access the customers’ payment information, and can only access the information they need for the given task. Agents that don’t comply with the terms will be blocked from accessing Walmart’s site.
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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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Přibližně 65 000 zákazníků Walmartu v USA obdrží od FTC šeky v celkové hodnotě 9,8 milionu USD v rámci vyrovnání sporu týkajícího se podvodů při převodech peněz.
Thousands of Walmart customers in the US will be receiving refunds following a Federal Trade Commission complaint alleging the international retailer failed to stop scammers from defrauding consumers.
According to the FTC announcement, around 65,000 consumers will be sent refund checks totaling $9.8 million as a result of a settlement reached with Walmart in June 2025.
The FTC alleged that Walmart allowed scammers to use its money transfer services between 2013 and 2018, prompting a 2022 complaint against the retailer.
“The company turned a blind eye while scammers took advantage of its failure to properly secure the money transfer services offered at Walmart stores,” the FTC alleged in an announcement at the time. “The company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores.”
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In addition to the payout, the settlement also prohibits Walmart from offering money transfer services “without taking timely and appropriate action to effectively detect and prevent fraud-induced money transfers” or paying out money transfers that are known to be fraud-induced.
“Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it’s sent, it’s gone for good,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said in a 2025 announcement. “Companies that provide these services must train their employees to comply with the law and work to protect consumers.”
Consumers affected will be receiving checks from the FTC, and will have 90 days to cash the check. The FTC notes that consumers may direct their questions regarding payments to Rust Consulting, the refund administrator.
The FTC settlement is not Walmart’s only recent widespread refund. As part of a new combined Walmart+ and Sam’s Club Plus membership deal—offering both for $120 annually—the company announced this week that customers currently paying for both will be able to receive a “prorated refund” for the Walmart+ membership.
ABOUT THE AUTHOR
María José Gutierrez Chavez is a trending news writer for Fast Company. She was previously the editorial fellow at Inc More
Analytici očekávají, že Verizon ve čtvrtletí vykáže zisk na akcii ve výši 1,27 USD, což představuje meziroční nárůst o 5 %, při tržbách 34,81 miliardy USD.
Analysts on Wall Street project that Verizon Communications (VZ - Free Report) will announce quarterly earnings of $1.27 per share in its forthcoming report, representing an increase of 5% year over year. Revenues are projected to reach $34.81 billion, increasing 2.9% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Verizon metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Operating Revenues- Wireless equipment revenues' to reach $5.45 billion. The estimate indicates a change of -3% from the prior-year quarter.
It is projected by analysts that the 'Operating Revenues- Service revenues and other' will reach $29.29 billion. The estimate suggests a change of +3.9% year over year.
The consensus among analysts is that 'Operating revenues- Consumer' will reach $26.90 billion. The estimate suggests a change of +3% year over year.
The average prediction of analysts places 'Operating revenues- Business' at $7.19 billion. The estimate points to a change of +0.7% from the year-ago quarter.
Analysts' assessment points toward 'Operating revenues- Consumer- Other' reaching $2.40 billion. The estimate suggests a change of +140.1% year over year.
The consensus estimate for 'Operating revenues- Consumer- Wireless equipment' stands at $4.71 billion. The estimate indicates a year-over-year change of -1.2%.
According to the collective judgment of analysts, 'Wireless - Retail Prepaid Connections' should come in at 19.40 million. The estimate compares to the year-ago value of 19.06 million.
Analysts predict that the 'Wireless - Retail postpaid Connections' will reach 126.85 million. The estimate is in contrast to the year-ago figure of 125.91 million.
Analysts expect 'Wireless - Retail Connections - End of Period' to come in at 147.27 million. The estimate compares to the year-ago value of 146.12 million.
The collective assessment of analysts points to an estimated 'Operating Income (Loss)- Business' of $969.00 million. Compared to the present estimate, the company reported $637.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Operating Income (Loss)- Consumer' will likely reach $8.04 billion. Compared to the present estimate, the company reported $7.66 billion in the same quarter last year.
View all Key Company Metrics for Verizon here>>>
Shares of Verizon have demonstrated returns of -4.1% over the past month compared to the Zacks S&P 500 composite's +1% change. With a Zacks Rank #3 (Hold), VZ is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Analytici očekávají, že Cincinnati Financial vykáže čtvrtletní zisk 1,99 USD na akcii, což představuje meziroční pokles o 30,2%, při tržbách ve výši 3,03 mld. USD (+5,5%).
The upcoming report from Cincinnati Financial (CINF - Free Report) is expected to reveal quarterly earnings of $1.99 per share, indicating a decline of 30.2% compared to the year-ago period. Analysts forecast revenues of $3.03 billion, representing an increase of 5.5% year over year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Cincinnati Financial metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenues- Investment income, net of expenses- Total' of $323.31 million. The estimate suggests a change of +9.6% year over year.
Analysts' assessment points toward 'Revenues- Earned premiums- Total' reaching $2.70 billion. The estimate indicates a change of +5% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Personal Lines Insurance- Earned premiums' at $895.37 million. The estimate indicates a change of +6.9% from the prior-year quarter.
Analysts forecast 'Revenues- Life Insurance Subsidiary- Earned premiums' to reach $86.23 million. The estimate points to a change of +3.9% from the year-ago quarter.
Based on the collective assessment of analysts, 'Property Casualty Insurance Segment - Expense Ratio' should arrive at 29.2%. Compared to the present estimate, the company reported 29.3% in the same quarter last year.
According to the collective judgment of analysts, 'Property Casualty Insurance Segment - Loss and loss expenses' should come in at 67.2%. The estimate is in contrast to the year-ago figure of 58.9%.
It is projected by analysts that the 'Property Casualty Insurance Segment - Combined Ratio' will reach 96.4%. Compared to the present estimate, the company reported 88.2% in the same quarter last year.
Analysts expect 'Commercial Lines Insurance - Loss and loss expenses' to come in at 66.7%. Compared to the present estimate, the company reported 60.8% in the same quarter last year.
The combined assessment of analysts suggests that 'Excess and surplus lines insurance - Loss and loss expenses' will likely reach 64.1%. The estimate is in contrast to the year-ago figure of 62.1%.
The consensus among analysts is that 'Commercial Lines Insurance - Underwriting expenses' will reach 30.7%. The estimate is in contrast to the year-ago figure of 30.3%.
The consensus estimate for 'Excess and surplus lines insurance - Underwriting expenses' stands at 27.6%. The estimate compares to the year-ago value of 27.7%.
Analysts predict that the 'Personal Lines Insurance - Underwriting expenses' will reach 27.7%. The estimate is in contrast to the year-ago figure of 27.8%.
View all Key Company Metrics for Cincinnati Financial here>>>
Over the past month, Cincinnati Financial shares have recorded returns of +3.8% versus the Zacks S&P 500 composite's +1% change. Based on its Zacks Rank #2 (Buy), CINF will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
IBM ve třetím čtvrtletí zvýšila tržby o 5 % na 17,1 mld. USD a čistý zisk o 26 % na 2,2 mld. USD. Zvýšila také výhled celoročního volného cash flow, které má meziročně vzrůst o více než 1 mld. USD.
Exceeded expectations with accelerated revenue growth led by Software and Infrastructure; Raises outlook for full-year free cash flow
, /PRNewswire/ -- IBM (NYSE: IBM) today announced third-quarter 2026 earnings results.
"Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow. Our clients are now deploying Super Intelligence in ways that transform entire operating models, instead of simply addressing narrow or novel problems. IBM's technology and expertise are helping organizations drive growth and serve customers with greater speed, precision and efficiency than ever before," said Arvind Krishna, IBM chairman, president and chief executive officer. "For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year."
Third-Quarter Highlights
Revenue
- Revenue of $17.1 billion, up 5 percent, up 6 percent at constant currency
- Software revenue up 8 percent, up 9 percent at constant currency
- Consulting revenue flat, up 2 percent at constant currency
- Infrastructure revenue up 4 percent, up 5 percent at constant currency
Profit
- Gross Profit Margin: GAAP: 56.8 percent, down 50 basis points; Operating (Non-GAAP): 58.5 percent, down 20 basis points
- Pre-Tax Income Margin: GAAP: 14.6 percent, down 30 basis points; Operating (Non-GAAP): 19.3 percent, up 70 basis points
Cash Flow
- Year to date, net cash from operating activities of $11.8 billion; free cash flow of $7.8 billion
THIRD-QUARTER 2026 INCOME STATEMENT SUMMARY
Revenue
Gross
Profit
Gross
Profit
Margin
Pre-tax
Income
Pre-tax
Income
Margin
Net
Income
Diluted
Earnings
Per Share
GAAP from
Continuing
Operations
$ 17.1 B
$ 9.7 B
56.8
%
$ 2.5 B
14.6
%
$ 2.2 B
$ 2.31
Year/Year
5
% (1)
4
%
(0.5)
Pts
3
%
(0.3)
Pts
26
%
26
%
Operating
(Non-GAAP)
$ 10.0 B
58.5
%
$ 3.3 B
19.3
%
$ 2.8 B
$ 2.95
Year/Year
4
%
(0.2)
Pts
9
%
0.7
Pts
12
%
11
%
(1) 6% at constant currency.
"Demand across our portfolio combined with strong operational execution led to accelerated growth and solid operating pre-tax margin expansion in the quarter," said James Kavanaugh, IBM senior vice president and chief financial officer. "Just as we are helping clients extract value from their operations with Super Intelligence, we are driving tangible returns through our productivity initiatives inside IBM. This approach fuels profit and free cash flow growth and enables us to continue to invest in our business while returning value to shareholders through our dividend."
Segment Results for Third Quarter
Software — revenues of $7.8 billion, up 8 percent, up 9 percent at constant currency
- Hybrid Cloud (Red Hat) up 11 percent
- Automation down 3 percent
- Data up 19 percent, up 20 percent at constant currency
- Transaction Processing up 9 percent, up 10 percent at constant currency
Consulting — revenues of $5.3 billion, flat, up 2 percent at constant currency
- Strategy and Technology up 2 percent, up 4 percent at constant currency
- Intelligent Operations down 2 percent, flat at constant currency
Infrastructure — revenues of $3.7 billion, up 4 percent, up 5 percent at constant currency
- Hybrid Infrastructure up 8 percent, up 9 percent at constant currency
-- IBM Z down 20 percent, down 19 percent at constant currency
-- Distributed Infrastructure up 31 percent, up 32 percent at constant currency
- Infrastructure Support down 3 percent, down 2 percent at constant currency
Financing — revenues of $0.2 billion, down 4 percent, down 3 percent at constant currency
Cash Flow and Balance Sheet
In the third quarter, the company generated net cash from operating activities of $4.0 billion, up $0.9 billion year to year. IBM's free cash flow was $3.0 billion, up $0.7 billion year to year. The company returned $1.6 billion to shareholders in dividends in the third quarter.
For the first nine months of the year, the company generated net cash from operating activities of $11.8 billion, up $2.6 billion year to year. IBM's free cash flow was $7.8 billion, up $0.6 billion year to year.
IBM ended the third quarter with $11.1 billion of cash, restricted cash and marketable securities, down $3.4 billion from year-end 2025. The company invested $11.4 billion in acquisitions this year. Debt, including IBM Financing debt of $12.7 billion, totaled $63.8 billion, up $2.6 billion year to date.
Full-Year 2026 Expectations
Revenue: The company continues to expect full-year constant currency revenue growth in the range of four-to-five percent. At current foreign exchange rates, currency is expected to be neutral to growth for the year
Free cash flow: The company now expects full-year free cash flow to increase by more than $1 billion year-over-year
Dividend Declaration
The IBM board of directors approved a regular quarterly cash dividend of $1.69 per common share, to stockholders of record on November 10, 2026. With payment of the December 10, 2026 dividend, IBM will have paid consecutive quarterly dividends every year since 1916.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company's innovation initiatives; damage to the company's reputation; risks from investing in growth opportunities; failure of the company's intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company's ability to successfully manage acquisitions, alliances and divestitures, including integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company's failure to meet growth and productivity objectives; ineffective internal controls; the company's use of accounting estimates; impairment of the company's goodwill or amortizable intangible assets; the company's ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product and service quality issues; the development and use of AI, including the company's increased AI solutions and use of AI technologies; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data protection considerations; adverse effects related to climate change and other environmental matters; tax matters; legal proceedings and investigatory risks; the company's pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company's Form 10-Qs, Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.
Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.
Presentation of Information in this Press Release
In an effort to provide investors with additional information regarding the company's results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:
adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
net cash from operating activities excluding IBM Financing receivables;
adjusted EBITDA;
adjusted EBITDA margin.
The rationale for management's use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.
Conference Call and Webcast
IBM's regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-3q26. Presentation charts will be available shortly before the Webcast.
Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).
Contact: IBM
Tim Davidson, 914-844-7847
[email protected]
Erin McElwee, 347-920-6825
[email protected]
INTERNATIONAL BUSINESS MACHINES CORPORATION
COMPARATIVE FINANCIAL RESULTS
(Unaudited; $ in millions except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
REVENUE BY SEGMENT
Software
$ 7,804
$ 7,209
$ 22,617
$ 20,932
Consulting
5,335
5,324
15,934
15,706
Infrastructure
3,707
3,559
10,868
10,586
Financing
192
200
598
557
Other
66
38
165
68
TOTAL REVENUE
17,103
16,331
50,182
47,849
GROSS PROFIT
9,714
9,360
28,571
27,369
GROSS PROFIT MARGIN
Software
82.5
%
83.1
%
82.6
%
83.5
%
Consulting
27.4
%
29.3
%
27.9
%
28.0
%
Infrastructure
56.7
%
57.2
%
57.4
%
57.7
%
Financing
40.7
%
45.6
%
42.2
%
45.7
%
TOTAL GROSS PROFIT MARGIN
56.8
%
57.3
%
56.9
%
57.2
%
EXPENSE AND OTHER INCOME
SG&A
4,620
4,748
14,691
14,661
R&D
2,378
2,082
6,863
6,129
Intellectual property and custom development income
(164)
(219)
(501)
(687)
Other (income) and expense
(109)
(173)
(296)
(376)
Interest expense
491
492
1,451
1,457
TOTAL EXPENSE AND OTHER INCOME
7,217
6,931
22,208
21,184
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
2,497
2,430
6,363
6,185
Pre-tax income margin
14.6
%
14.9
%
12.7
%
12.9
%
Provision for/(benefit from) income taxes
298
686
782
1,193
Effective tax rate
11.9
%
28.2
%
12.3
%
19.3
%
INCOME FROM CONTINUING OPERATIONS
$ 2,199
$ 1,744
$ 5,581
$ 4,992
DISCONTINUED OPERATIONS
Income from discontinued operations, net of taxes
(10)
0
(10)
1
NET INCOME
$ 2,190
$ 1,744
$ 5,571
$ 4,993
EARNINGS PER SHARE OF COMMON STOCK
Assuming dilution
Continuing operations
$ 2.31
$ 1.84
$ 5.86
$ 5.27
Discontinued operations
$ (0.01)
$ 0.00
$ (0.01)
$ 0.00
TOTAL
$ 2.30
$ 1.84
$ 5.85
$ 5.27
Basic
Continuing operations
$ 2.33
$ 1.87
$ 5.93
$ 5.36
Discontinued operations
$ (0.01)
$ 0.00
$ (0.01)
$ 0.00
TOTAL
$ 2.32
$ 1.87
$ 5.92
$ 5.36
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING (M's)
Assuming dilution
953.5
948.9
953.0
947.4
Basic
944.4
933.9
941.4
930.9
INTERNATIONAL BUSINESS MACHINES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
($ in millions)
At September 30,
2026
At December 31,
2025
ASSETS:
Current assets:
Cash and cash equivalents
$ 9,233
$ 13,587
Restricted cash
48
54
Marketable securities
1,825
830
Notes and accounts receivable - trade, net
5,794
8,112
Short-term financing receivables
Held for investment, net
5,638
7,344
Held for sale
774
1,131
Other accounts receivable, net
1,673
1,052
Inventories
1,945
1,220
Deferred costs
1,177
1,084
Prepaid expenses and other current assets
3,083
2,530
Total current assets
31,192
36,944
Property, plant and equipment, net
6,043
5,899
Operating right-of-use assets, net
3,114
3,129
Long-term financing receivables, net
6,844
7,708
Prepaid pension assets
7,715
7,544
Deferred costs
808
825
Deferred taxes
8,827
8,610
Goodwill
74,916
67,717
Intangibles, net
13,603
11,391
Investments and sundry assets
1,950
2,112
Total assets
$ 155,011
$ 151,880
LIABILITIES:
Current Liabilities:
Taxes
$ 1,867
$ 2,347
Short-term debt
7,013
6,424
Accounts payable
4,491
4,756
Compensation and benefits
3,668
4,114
Deferred income
15,164
16,101
Operating lease liabilities
749
800
Other liabilities
3,534
4,116
Total current liabilities
36,485
38,658
Long-term debt
56,804
54,836
Retirement-related obligations
8,452
9,018
Deferred income
4,318
4,271
Operating lease liabilities
2,574
2,547
Other liabilities
10,172
9,810
Total liabilities
118,805
119,139
EQUITY:
IBM stockholders' equity:
Common stock
65,137
63,318
Retained earnings
156,576
155,648
Treasury stock - at cost
(171,191)
(170,605)
Accumulated other comprehensive income/(loss)
(14,985)
(15,713)
Total IBM stockholders' equity
35,537
32,648
Noncontrolling interests
669
93
Total equity
36,206
32,740
Total liabilities and equity
$ 155,011
$ 151,880
INTERNATIONAL BUSINESS MACHINES CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions)
2026
2025 (1)
2026
2025 (1)
Cash flows from operating activities:
Net income
$ 2,190
$ 1,744
$ 5,571
$ 4,993
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation (2)
550
583
1,638
1,698
Amortization of capitalized software and acquired intangible assets
828
699
2,363
2,027
Stock-based compensation
535
444
1,539
1,285
Net (gain)/loss on divestitures, asset sales and other
(47)
(6)
(124)
(46)
Changes in operating assets and liabilities, net of
acquisitions/divestitures
(31)
(383)
804
(804)
Net cash provided by operating activities
4,025
3,081
11,791
9,153
Cash flows from investing activities:
Payments for property, plant and equipment
(332)
(255)
(793)
(709)
Proceeds from disposition of property, plant and equipment/other
29
7
60
118
Investment in software
(154)
(162)
(467)
(476)
Purchases of marketable securities and other investments
(1,898)
(1,169)
(4,769)
(8,910)
Proceeds from disposition of marketable securities and other
investments
640
1,199
3,763
6,162
Acquisition of businesses, net of cash acquired
(884)
(58)
(11,364)
(7,903)
Divestiture of businesses, net of cash transferred
28
-
30
(1)
Net cash provided by/(used in) investing activities
(2,570)
(437)
(13,539)
(11,719)
Cash flows from financing activities:
Proceeds from new debt
1,978
6
9,415
8,391
Payments to settle debt
(120)
(1,114)
(7,261)
(3,679)
Short-term borrowings/(repayments) less than 90 days - net
2
0
3
(29)
Common stock repurchases for tax withholdings
(352)
(414)
(817)
(851)
Proceeds from issuance of shares
143
134
562
535
Noncontrolling interest transactions (3)
575
-
557
(15)
Financing - other (3)
(24)
(54)
(98)
(93)
Cash dividends paid
(1,596)
(1,569)
(4,762)
(4,681)
Net cash provided by/(used in) financing activities
607
(3,012)
(2,402)
(423)
Effect of exchange rate changes on cash, cash equivalents and restricted
cash
3
(59)
(209)
429
Net change in cash, cash equivalents and restricted cash
2,064
(426)
(4,359)
(2,561)
Cash, cash equivalents and restricted cash at the beginning of the period
7,217
12,026
13,640
14,160
Cash, cash equivalents and restricted cash at the end of the period
$ 9,282
$ 11,600
$ 9,282
$ 11,600
____________________
(1) Reclassified to align with the Consolidated Statement of Cash Flows presentation.
(2) Includes operating lease right-of-use assets amortization.
(3) Prior-year amounts have been reclassified to conform to the change in 2026 presentation.
INTERNATIONAL BUSINESS MACHINES CORPORATION
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in billions)
2026
2025
Yr/Yr
2026
2025
Yr/Yr
Net income as reported (GAAP)
$ 2.2
$ 1.7
$ 0.4
$ 5.6
$ 5.0
$ 0.6
Less: income from discontinued operations, net of tax
0.0
0.0
0.0
0.0
0.0
0.0
Income from continuing operations
2.2
1.7
0.5
5.6
5.0
0.6
Provision for/(benefit from) income taxes from continuing ops.
0.3
0.7
(0.4)
0.8
1.2
(0.4)
Pre-tax income from continuing operations (GAAP)
2.5
2.4
0.1
6.4
6.2
0.2
Non-operating adjustments (before tax)
Acquisition-related charges (1)
0.7
0.6
0.1
2.1
1.7
0.3
Non-operating retirement-related costs/(income)
0.1
0.0
0.1
0.3
0.1
0.2
Operating (non-GAAP) pre-tax income from continuing ops.
3.3
3.0
0.3
8.7
8.0
0.7
Net interest expense
0.4
0.3
0.1
1.1
0.9
0.2
Depreciation/amortization of non-acquired intangible assets
0.7
0.7
0.0
2.1
2.1
0.0
Stock-based compensation
0.5
0.4
0.1
1.5
1.3
0.3
Workforce rebalancing charges
0.0
0.0
0.0
0.4
0.4
0.0
Corporate (gains) and charges (2)
0.0
0.0
0.0
(0.2)
0.0
(0.2)
Adjusted EBITDA
$ 4.9
$ 4.6
$ 0.3
$ 13.7
$ 12.7
$ 1.0
Revenue
$ 17.1
$ 16.3
5 %
$ 50.2
$ 47.8
5 %
GAAP net income margin
12.8 %
10.7 %
2.1pts
11.1 %
10.4 %
0.7pts
Adjusted EBITDA margin
28.7 %
28.0 %
0.6pts
27.2 %
26.5 %
0.8pts
____________________
(1) Primarily consists of amortization of acquired intangible assets.
(2) Primarily consists of unique corporate actions such as gains on divestitures and asset sales.
INTERNATIONAL BUSINESS MACHINES CORPORATION
SEGMENT DATA
(Unaudited)
Three Months Ended September 30, 2026
($ in millions)
Software
Consulting
Infrastructure
Financing
Revenue
$ 7,804
$ 5,335
$ 3,707
$ 192
Segment profit
$ 2,734
$ 653
$ 715
$ 108
Segment profit margin
35.0
%
12.2
%
19.3
%
56.1
%
Change YTY revenue
8.2
%
0.2
%
4.2
%
(3.9)
%
Change YTY revenue - constant currency
8.7
%
1.8
%
4.9
%
(3.3)
%
Three Months Ended September 30, 2025
($ in millions)
Software
Consulting
Infrastructure
Financing
Revenue
$ 7,209
$ 5,324
$ 3,559
$ 200
Segment profit
$ 2,374
$ 686
$ 644
$ 123
Segment profit margin
32.9
%
12.9
%
18.1
%
61.6
%
Nine Months Ended September 30, 2026
($ in millions)
Software
Consulting
Infrastructure
Financing
Revenue
$ 22,617
$ 15,934
$ 10,868
$ 598
Segment Profit
$ 7,335
$ 1,858
$ 2,074
$ 334
Segment Profit Margin
32.4
%
11.7
%
19.1
%
55.9
%
Change YTY Revenue
8.1
%
1.5
%
2.7
%
7.3
%
Change YTY Revenue - Constant Currency
7.0
%
1.2
%
1.9
%
5.7
%
Nine Months Ended September 30, 2025
($ in millions)
Software
Consulting
Infrastructure
Financing
Revenue
$ 20,932
$ 15,706
$ 10,586
$ 557
Segment Profit
$ 6,517
$ 1,807
$ 1,857
$ 371
Segment Profit Margin
31.1
%
11.5
%
17.5
%
66.5
%
INTERNATIONAL BUSINESS MACHINES CORPORATION
U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION
(Unaudited; $ in millions except per share amounts)
Three Months Ended September 30, 2026
Continuing Operations
GAAP
Acquisition-
Related
Adjustments (1)
Retirement-
Related
Adjustments (2)
Tax
Reform
Impacts
Operating
(Non-
GAAP)
Gross profit
$ 9,714
$ 289
$ —
$ —
$ 10,004
Gross profit margin
56.8
%
1.7
pts
—
pts
—
pts
58.5
%
SG&A
$ 4,620
$ (428)
$ —
$ —
$ 4,193
Other (income) & expense
(109)
0
(91)
—
(200)
Total expense & other (income)
7,217
(418)
(91)
—
6,708
Pre-tax income from continuing operations
2,497
707
91
—
3,295
Pre-tax margin from continuing operations
14.6
%
4.1
pts
0.5
pts
—
pts
19.3
%
Provision for/(benefit from) income taxes (3)
$ 298
$ 166
$ 20
—
$ 483
Effective tax rate
11.9
%
2.5
pts
0.3
pts
—
pts
14.7
%
Income from continuing operations
$ 2,199
$ 542
$ 71
$ —
$ 2,812
Income margin from continuing operations
12.9
%
3.2
pts
0.4
pts
—
pts
16.4
%
Diluted earnings per share: continuing
operations
$ 2.31
$ 0.57
$ 0.07
$ —
$ 2.95
Three Months Ended September 30, 2025
Continuing Operations
GAAP
Acquisition-
Related
Adjustments (1)
Retirement-
Related
Adjustments (2)
Tax
Reform
Impacts
Operating
(Non-
GAAP)
Gross profit
$ 9,360
$ 231
$ —
$ —
$ 9,591
Gross profit margin
57.3
%
1.4
pts
—
pts
—
pts
58.7
%
SG&A
$ 4,748
$ (354)
$ —
$ —
$ 4,394
Other (income) & expense
(173)
(6)
(13)
—
(191)
Total expense & other (income)
6,931
(359)
(13)
—
6,559
Pre-tax income from continuing operations
2,430
590
13
—
3,033
Pre-tax margin from continuing operations
14.9
%
3.6
pts
0.1
pts
—
pts
18.6
%
Provision for/(benefit from) income taxes (3)
$ 686
$ 136
$ 3
$ (309)
$ 516
Effective tax rate
28.2
%
(1.0)
pts
0.0
pts
(10.2)
pts
17.0
%
Income from continuing operations
$ 1,744
$ 454
$ 10
$ 309
$ 2,517
Income margin from continuing operations
10.7
%
2.8
pts
0.1
pts
1.9
pts
15.4
%
Diluted earnings per share: continuing
operations
$ 1.84
$ 0.48
$ 0.01
$ 0.33
$ 2.65
____________________
(1) Includes amortization of acquired intangible assets and acquisition-related charges such as in-process research and development, transaction
costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as
financing costs.
(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan
curtailments/settlements and pension insolvency costs and other costs.
(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to
the GAAP pre-tax income.
INTERNATIONAL BUSINESS MACHINES CORPORATION
U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION
(Unaudited; $ in millions except per share amounts)
Nine Months Ended September 30, 2026
Continuing Operations
GAAP
Acquisition-
Related
Adjustments (1)
Retirement-
Related
Adjustments (2)
Tax
Reform
Impacts
Operating
(Non-
GAAP)
Gross Profit
$ 28,571
$ 813
$ —
$ —
$ 29,384
Gross Profit Margin
56.9
%
1.6
pts
—
pts
—
pts
58.6
%
SG&A
$ 14,691
$ (1,257)
$ —
$ —
$ 13,435
Other (Income) & Expense
(296)
1
(283)
—
(578)
Total Expense & Other (Income)
22,208
(1,256)
(283)
—
20,669
Pre-tax Income from Continuing Operations
6,363
2,069
283
—
8,715
Pre-tax Margin from Continuing Operations
12.7
%
4.1
pts
0.6
pts
—
pts
17.4
%
Provision for/(Benefit from) Income Taxes (3)
$ 782
$ 470
$ 43
$ (6)
$ 1,290
Effective Tax Rate
12.3
%
2.5
pts
0.1
pts
(0.1)
pts
14.8
%
Income from Continuing Operations
$ 5,581
$ 1,598
$ 240
$ 6
$ 7,425
Income Margin from Continuing Operations
11.1
%
3.2
pts
0.5
pts
0.0
pts
14.8
%
Diluted Earnings Per Share: Continuing
Operations
$ 5.86
$ 1.68
$ 0.25
$ 0.01
$ 7.79
Nine Months Ended September 30, 2025
Continuing Operations
GAAP
Acquisition-
Related
Adjustments (1)
Retirement-
Related
Adjustments (2)
Tax
Reform
Impacts
Operating
(Non-
GAAP)
Gross Profit
$ 27,369
$ 657
$ —
$ —
$ 28,025
Gross Profit Margin
57.2
%
1.4
pts
—
pts
—
pts
58.6
%
SG&A
$ 14,661
$ (1,055)
$ —
$ —
$ 13,606
Other (Income) & Expense
(376)
(7)
(61)
—
(444)
Total Expense & Other (Income)
21,184
(1,066)
(61)
—
20,058
Pre-tax Income from Continuing Operations
6,185
1,723
61
—
7,968
Pre-tax Margin from Continuing Operations
12.9
%
3.6
pts
0.1
pts
—
pts
16.7
%
Provision for/(Benefit from) Income Taxes (3)
$ 1,193
$ 396
$ 0
$ (307)
$ 1,282
Effective Tax Rate
19.3
%
0.8
pts
(0.2)
pts
(3.9)
pts
16.1
%
Income from Continuing Operations
$ 4,992
$ 1,326
$ 61
$ 307
$ 6,686
Income Margin from Continuing Operations
10.4
%
2.8
pts
0.1
pts
0.6
pts
14.0
%
Diluted Earnings Per Share: Continuing
Operations
$ 5.27
$ 1.40
$ 0.06
$ 0.32
$ 7.06
____________________
(1) Includes amortization of acquired intangible assets, and acquisition-related charges such as in-process research and development, transaction
costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as
financing costs.
(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan
curtailments/settlements and pension insolvency costs and other costs.
(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to
the GAAP pre-tax income.
INTERNATIONAL BUSINESS MACHINES CORPORATION
GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions)
2026
2025
2026
2025
Net cash provided by operating activities per GAAP
$ 4,025
$ 3,081
$ 11,791
$ 9,153
Less: change in IBM Financing receivables
541
298
2,805
905
Net cash from operating activities excl. IBM Financing receivables
3,484
2,783
8,986
8,248
Capital expenditures, net
(457)
(410)
(1,200)
(1,067)
Free cash flow
$ 3,027
$ 2,373
$ 7,787
$ 7,181
INTERNATIONAL BUSINESS MACHINES CORPORATION
GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in billions)
2026
2025
2026
2025
Net cash provided by operating activities
$ 4.0
$ 3.1
$ 11.8
$ 9.2
Add:
Net interest expense
0.4
0.3
1.1
0.9
Provision for/(benefit from) income taxes from continuing operations
0.3
0.7
0.8
1.2
Less change in:
Financing receivables
0.5
0.3
2.8
0.9
Net (gain)/loss on divestitures, assets sales and other (1)
0.0
0.0
(0.1)
0.0
Other assets and liabilities/other, net (1,2)
(0.7)
(0.8)
(2.6)
(2.2)
Adjusted EBITDA
$ 4.9
$ 4.6
$ 13.7
$ 12.7
Revenue
$ 17.1
$ 16.3
$ 50.2
$ 47.8
Net cash provided by operating activities margin
23.5 %
18.9 %
23.5 %
19.1 %
Adjusted EBITDA margin
28.7 %
28.0 %
27.2 %
26.5 %
____________________
(1) Reclassified to align with the presentation of similar line items in the Statement of Cash Flows.
(2) Mainly consists of Changes in operating assets and liabilities, net of acquisitions/divestitures in the Statement of Cash Flows chart,
workforce rebalancing charges, non-operating impacts, and corporate (gains) and charges, less the change in Financing receivables.
Current cloud backlog of €24.1 billion, up 28% and up 26% at constant currencies
Cloud revenue up 26% and up 25% at constant currencies
Cloud ERP Suite revenue up 29% and up 28% at constant currencies
Total revenue up 13% and up 12% at constant currencies
IFRS operating profit up 18%, non-IFRS operating profit up 18%, both at nominal and constant currencies
SAP updates its 2026 cloud revenue and cloud and software revenue outlook
Christian Klein, CEO:
Q3 was an outstanding quarter, with current cloud backlog up 26% at constant currencies. Our Autonomous Enterprise strategy is not just resonating, it is being adopted. Our customers are investing in the technology behind it – from the cloud and data foundation to our Business AI. They see that Joule Work makes the business case for their transformation more attractive than ever.
Dominik Asam, CFO:
For the first time, SAP crossed €10 billion in total quarterly revenue and €3 billion of non-IFRS operating profit, reflecting the strength and scalability of our business model. Our disciplined approach to cost management, paired with continued cloud momentum, demonstrates our ability to grow both the top and bottom line at the same time.
, /PRNewswire/ -- SAP SE (NYSE: SAP) announced today its financial results for the third quarter ended September 30, 2026.
Group Results at a Glance
Third quarter 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q3 2026
Q3 2025
∆ in %
Q3 2026
Q3 2025
∆ in %
∆ in % const.
curr.
Current cloud backlog
24,144
18,839
28
26
SaaS/PaaS2
6,612
5,212
27
6,612
5,212
27
26
Thereof Cloud ERP Suite2
5,924
4,586
29
5,924
4,586
29
28
Thereof Extension Suite2
688
627
10
688
627
10
8
IaaS2
56
78
–27
56
78
–27
–27
Cloud revenue
6,668
5,290
26
6,668
5,290
26
25
Software licenses revenue
147
161
–9
147
161
–9
–9
Software support revenue
2,434
2,565
–5
2,434
2,565
–5
–6
Cloud and software revenue
9,249
8,016
15
9,249
8,016
15
14
Services Revenue
1,021
1,060
–4
1,021
1,060
–4
–5
Total revenue
10,270
9,076
13
10,270
9,076
13
12
Cloud gross profit
4,930
3,948
25
4,956
3,972
25
24
Cloud gross margin (in %)
73.9
74.6
–0.7pp
74.3
75.1
–0.8pp
–0.7pp
Gross profit
7,510
6,671
13
7,543
6,696
13
12
Gross margin (in %)
73.1
73.5
–0.4pp
73.4
73.8
–0.3pp
–0.3pp
Operating profit (loss)
2,930
2,487
18
3,030
2,566
18
18
Operating margin (in %)
28.5
27.4
1.1pp
29.5
28.3
1.2pp
1.5pp
Profit (loss) after tax
2,269
2,051
11
2,171
1,852
17
Earnings per share - Basic (in €)
1.96
1.72
14
1.89
1.59
19
Net cash flows from operating activities
1,920
1,502
28
Free cash flow
1,718
1,266
36
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in the Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Nine months ended September 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q1–Q3
2026
Q1–Q3
2025
∆ in %
Q1–Q3
2026
Q1–Q3
2025
∆ in %
∆ in % const.
curr.
Current cloud backlog
24,144
18,839
28
26
SaaS/PaaS2
18,724
15,148
24
18,724
15,148
24
26
Thereof Cloud ERP Suite2
16,662
13,258
26
16,662
13,258
26
28
Thereof Extension Suite2
2,062
1,889
9
2,062
1,889
9
11
IaaS2
187
266
–29
187
266
–29
–28
Cloud revenue
18,911
15,413
23
18,911
15,413
23
25
Software licenses revenue
395
538
–27
395
538
–27
–26
Software support revenue
7,342
7,969
–8
7,342
7,969
–8
–6
Cloud and software revenue
26,648
23,920
11
26,648
23,920
11
14
Services Revenue
3,055
3,196
–4
3,055
3,196
–4
–3
Total revenue
29,703
27,116
10
29,703
27,116
10
12
Cloud gross profit
14,044
11,501
22
14,124
11,573
22
25
Cloud gross margin (in %)
74.3
74.6
–0.4pp
74.7
75.1
–0.4pp
–0.5pp
Gross profit
21,710
19,898
9
21,806
19,971
9
11
Gross margin (in %)
73.1
73.4
–0.3pp
73.4
73.6
–0.2pp
–0.3pp
Operating profit (loss)
8,313
7,276
14
8,639
7,590
14
17
Operating margin (in %)
28.0
26.8
1.2pp
29.1
28.0
1.1pp
1.3pp
Profit (loss) after tax
6,424
5,596
15
6,001
5,280
14
Earnings per share - Basic (in €)
5.50
4.70
17
5.20
4.53
15
Net cash flows from operating activities
8,586
7,859
9
Free cash flow
7,968
7,205
11
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in the Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Supplementary Information[1]
Financial Results
Cloud revenue growth was positively impacted by several quarter-specific effects, mainly a multi-quarter revenue catch-up from customers returning from financial distress.
Total revenue in the third quarter included a contribution of €49 million from the acquisitions of Reltio, Dremio, and Prior Labs.
IFRS and non-IFRS operating profit included a negative contribution of €59 million and €39 million, respectively, from the aforementioned acquisitions. In addition, IFRS and non-IFRS operating profit growth benefited from prior year negative impacts of €0.1 billion each from a change in case law affecting SAP's other tax litigation and from a workforce transformation, both recorded in the third quarter of 2025.
Share Repurchase Program
In January 2026, SAP announced a new share repurchase program with an aggregate volume of up to €10 billion and a term until December 31, 2027. As of September 30, 2026, SAP had repurchased 25,205,983 shares at an average price of €164.79 resulting in a purchased volume of approximately €4.2 billion under the program.
Outlook
Financial Outlook
For 2026, SAP is updating its cloud revenue and cloud and software revenue outlook and now expects:
To generate cloud revenue towards the upper end of the outlook range of €25.8 – 26.2 billion at constant currencies
(2025: €21.02 billion), up 23% to 25% at constant currencies.
To generate cloud and software revenue towards the upper end of the outlook range of €36.3 – 36.8 billion at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies.
SAP continues to expect:
€11.8 – 12.2 billion operating profit (non-IFRS) at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies.
Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion).
An effective tax rate (non-IFRS) of approximately 29% (2025: 30.5%)[2].
Constant currencies current cloud backlog growth to slightly decelerate (2025: 25%).
SAP further expects:
Constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027.
Total operating expenses (non-IFRS) to grow at 80% to 90% of total revenue growth in 2027.
Constant currencies software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud.
SAP's current cloud backlog outlook for full-year 2026 is based on the assumption of a stable macroeconomic environment in the fourth quarter.
While SAP's 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming September 30, 2026 Rates Apply for 2026
In percentage points
Q4 2026
FY 2026
Cloud revenue growth
2.0pp
-1.5pp
Cloud and software revenue growth
1.5pp
-1.0pp
Operating profit growth (non-IFRS)
1.0pp
-2.0pp
This includes an exchange rate of 1.14 USD per EUR.
Non-Financial Outlook
For 2026, SAP continues to expect:
Cloud Customer Satisfaction (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%).
The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%).
The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%).
To steadily decrease carbon emissions across the relevant value chain (2025: 3.6 Mt).
Business Highlights
In the third quarter, customers around the globe continued to choose the "RISE with SAP" journey. These customers included: AstraZeneca, Aydem Enerji, Banco Bilbao, Fairstone Bank of Canada, Grupo SBF, Infineon Technologies, Nagel Group Logistics, and NTN Corporation.
A5X, Bitzer, BLACKROLL, Greenbrier Maxion (GBMX), Krannich Solar Group, Petroplus, Rittal, and SUZHOU ELE.MFG chose "SAP GROW".
Austrian Post (Österreichische Post), Commerz Real, Decathlon, Fraport, Henkel, MAN INDUSTRIES LIMITED, and Toyota Motor Philippines Corporation chose SAP's AI and data solutions.
Key customer wins across SAP's solution portfolio included: Chery Automobile, DOUGLAS Group, Helvetia Holding, Kao Corporation, NTT DATA, Tauranga City Council, and Wipro.
Bertelsmann, Eldorado Brasil, enersuisse, HUGO BOSS, Infineum, Infosys, Mondelez, Panasonic, Roche, and Thalia Bücher went live on SAP solutions in the third quarter.
In the third quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, Italy, India, South Korea and Spain had outstanding performance, while Switzerland, the United Kingdom and the U.S. were particularly strong.
On July 6, SAP announced that it has completed the acquisition of Dremio, an open, high-performance data lakehouse platform.
On July 17, SAP announced that it has completed the acquisition of Prior Labs, the pioneer of Tabular Foundation Models (TFMs).
On October 6, SAP showcased the Autonomous Enterprise in action at SAP Connect, demonstrating how Joule Work and Joule Assistants generate value for customers across every line of business.
In addition, SAP announced that they entered into an agreement for SAP to acquire TechWolf, a provider of a leading AI work intelligence platform.
Additional Information
This quarterly statement and all information therein are preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q3 2026 Quarterly Statement can be downloaded from: https://www.sap.com/docs/download/investors/2026/sap-2026-q3-statement.pdf.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial-documents-and-events/reporting-framework.html.
Webcast
SAP senior management will host a financial analyst conference call on Wednesday, October 21st at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company's website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the third quarter results can be found at https://www.sap.com/investor.
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
For more information, financial community only:
Alexandra Steiger +49 (6227) 7-767336 [email protected], CET
Follow SAP Investor Relations on LinkedIn at SAP Investor Relations.
For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1SAP (+1-800-872-1727)
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels.
This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2025 Annual Report on Form 20-F.
[1] The Q3 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 21 of the Quarterly Statement.
[2] The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
Jim Cramer called Kimberly-Clark hated, but the real story behind its dividend streak, its free cash flow, and a social media disinformation campaign in China raises harder questions than Cramer let on.
Jim Cramer has a frank label for one of the market’s oldest dividend growers. Talking about Kimberly-Clark (NASDAQ:KMB | KMB Price Prediction) on CNBC on October 15, 2026, he said: “This was a premier name, and it’s got a 5.5% dividend, whatever you want to call it, dividend king. And it’s hated, and it’s hated because the last couple of quarters have been not great.”
His view hasn’t changed since summer. On Mad Money in July, Cramer called the Huggies and Kleenex maker “not just a dividend aristocrat with 54 consecutive years of dividend increases, this is a dividend king” and pointed out that “the stock itself has been going nowhere for ages.” CNBC reported the next day that Kimberly-Clark was having its best week in four years.
Checking Cramer’s Dividend Math The streak checks out. As Cramer said, Kimberly-Clark’s dividend growth run reached 54 consecutive years as of the second quarter, which qualifies it as a Dividend King (we ranked ten Kings by valuation right now in a free report).
The yield he quoted is too high. The quarterly payout is $1.28. At the current price of $107.04, that works out to a yield of about 4.78%. Even at the $98.29 close on October 13, the yield was roughly 5.21%. The streak itself is also slowing. This year’s increase from $1.26 to $1.28 was only about 1.59%.
Free Cash Flow Is the Weak Spot in the Dividend Measured against earnings, the payout looks fine. The annualized dividend equals about 68% of 2025 adjusted EPS of $7.53. Cash coverage is much lower. In 2025, free cash flow came to $1.639 billion while dividends totaled $1.66 billion, so the company paid out roughly 101% of its free cash flow. Through the first half of 2026, free cash flow of $877 million covered dividends at about 96%.
A big reason is heavy spending on the company’s transformation. Capital expenditures rose to $1.138 billion in 2025 from $721 million in 2024. The balance sheet can absorb that. Total debt dropped to $6.517 billion at the end of June from $7.296 billion at year-end, and cash rose to $956 million.
Why Investors Turned on Kimberly-Clark Cramer’s “not great” description of recent quarters is accurate. In its second-quarter SEC filing, Kimberly-Clark reported revenue of $4.19 billion, missing the $4.22 billion estimate. North American sales fell 1.2%. A social media disinformation campaign in China about diaper quality cut organic sales by about 50 bps. The company also exited its U.S. private label diaper business and dealt with a fire at a Los Angeles distribution center. Management now expects adjusted EPS attributable to Kimberly-Clark to decline by a low single-digit amount in constant currency this year.
The pending acquisition of Kenvue (NYSE:KVUE), valued at about $48.7 billion, has added uncertainty. The stock is down 6.84% over the past year and 0.99% over five years.
Catalysts Behind the October Rally Several worries eased last week. Kimberly-Clark released preliminary third-quarter revenue and EPS that topped Wall Street estimates. Chinese authorities said they found no formaldehyde in Huggies diapers. The European Commission approved the Kenvue deal on the condition that the company sell some feminine care brands in the region, and Brazilian regulators also signed off (per CNBC and MLex reports). The shares are up 8.9% over the past week and 10.11% year to date.
Verdict: Cramer Is Mostly Right Cramer has the big picture right, though his yield figure is high. Kimberly-Clark has beaten EPS estimates for five consecutive quarters, expanded its adjusted gross margin by 190 bps last quarter, and trades at about 14 times 2025 adjusted earnings. For a Dividend King, that valuation suggests investors dislike the stock. The recent selloff shows investor frustration with the last few quarters.
The real yield is about 4.8%, though, and with free cash flow just covering the dividend, investors should expect small annual increases for now. The next milestones are the full third-quarter report, completion of the Kenvue deal by the end of 2026, and whether free cash flow coverage improves once capital spending comes down.
Contact [email protected] for any questions or corrections.
Globe Life snížila celoroční výhled provozního zisku na akcii pro rok 2026 na 15,35–15,65 USD kvůli vysokým škodám v programu EVERY a zpožděním při zpracování pojistných nároků v programu Medicare.
, /PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today that for the quarter ended September 30, 2026, net income was $4.62 per diluted common share, compared with $4.73 per diluted common share for the year-ago quarter. Net operating income was $4.84 per diluted common share, compared with $4.81 per diluted common share for the year-ago quarter.
HIGHLIGHTS:
Net income as an ROE(1) was 19.7% for the nine months ended September 30, 2026. Book value per share was $85.35, an increase of 23% over the year-ago quarter. Net operating income as an ROE(1) excluding accumulated other comprehensive income (AOCI) was 15.9% for the nine months ended September 30, 2026. Book value per share excluding AOCI was $103.62, an increase of 11% over the year-ago quarter. Total premium revenue grew 7% over the year-ago quarter. At the American Income Life Division, life premium increased 4% and life underwriting margin(1) increased 3% over the year-ago quarter. At the Liberty National Division, life net sales increased 7% and life premium increased 4% over the year-ago quarter. Additionally, the average producing agent count increased 9% over the year-ago quarter. At the Family Heritage Division, health underwriting margin(1) increased 12%, health premium increased 8%, and health net sales increased 5% over the year-ago quarter. 1.1 million shares of Globe Life Inc. common stock were repurchased during the quarter at a total cost of $185 million. (1)
The Company updates reserve assumptions in the third quarter each year. The results include the impact of this assumption update as a before tax remeasurement gain or loss. The current period includes a remeasurement gain due to assumption updates of $120.5 million ($96.4 million and $24.1 million gain related to Life and Health respectively) as compared assumption related remeasurement gains of $134.3 million ($130.9 and $3.4 million gains related to Life and Health respectively) in the year ago quarter. These amounts, along with experience related adjustments, are included within the remeasurement gain or loss in the Condensed Consolidated Statement of Operations.
Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
RESULTS OF OPERATIONS
Net operating income, a non-GAAP(1) financial measure, has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company, and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as realized investment gains and losses and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.
The following table represents Globe Life's operating summary for the three months ended September 30, 2026 and 2025:
Operating Summary
Per Share
Three Months Ended
September 30,
Three Months Ended
September 30,
2026
2025
%
Chg.
2026
2025
%
Chg.
Insurance underwriting income(2)
$ 6.16
$ 6.13
—
$ 481,832
$ 503,135
(4)
Excess investment income(2)
0.49
0.45
9
37,945
36,883
3
Interest on debt
(0.48)
(0.44)
9
(37,814)
(36,134)
5
Parent company expense
(0.04)
(0.05)
(2,875)
(4,105)
Income tax expense
(1.16)
(1.16)
—
(90,474)
(95,242)
(5)
Stock compensation benefit (expense), net of tax
(0.12)
(0.13)
(9,776)
(10,317)
Net operating income
4.84
4.81
1
378,838
394,220
(4)
Reconciling items, net of tax:
Realized gain (loss)
(0.13)
(0.05)
(9,964)
(3,939)
Non-operating expenses
(0.01)
—
(939)
(393)
Legal proceedings
(0.09)
(0.02)
(6,828)
(2,045)
Net income(3)
$ 4.62
$ 4.73
$ 361,107
$ 387,843
Weighted average diluted shares outstanding
78,225
82,015
(1)
GAAP is defined as accounting principles generally accepted in the United States of America.
(2)
Definitions included within this document.
(3)
A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.
Note: Tables in this earnings release may not sum due to rounding.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
MANAGEMENT VS. GAAP MEASURES
Shareholders' equity, excluding AOCI, and book value per share, excluding AOCI, are non-GAAP measures that are utilized by management to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. Management views the business in this manner because it creates more meaningful and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders' equity and book value per share are the most directly comparable GAAP measures.
Nine Months Ended
September 30,
2026
2025
Net income
$ 919,380
$ 895,155
Net operating income
937,043
924,652
Net income as an ROE(1)
19.7 %
21.9 %
Net operating income as an ROE (excluding AOCI)(1)
15.9 %
16.6 %
September 30,
2026
2025
Shareholders' equity
$ 6,618,484
$ 5,689,088
Impact of adjustment to exclude AOCI
1,416,943
1,972,891
Shareholders' equity, excluding AOCI
$ 8,035,427
$ 7,661,979
Book value per share
$ 85.35
$ 69.52
Impact of adjustment to exclude AOCI
18.27
24.11
Book value per share, excluding AOCI
$ 103.62
$ 93.63
(1)
Calculated using average shareholders' equity for the measurement period. Refer to Note (1), page 1, regarding the impact of the annual reserve assumption update on net income and net operating income.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
INSURANCE OPERATIONS:
Life insurance accounted for 80% of the Company's insurance underwriting margin for the quarter and 66% of total premium revenue.
Health insurance accounted for 20% of the Company's insurance underwriting margin for the quarter and 34% of total premium revenue.
The following table summarizes Globe Life's premium revenue by product type for the three months ended September 30, 2026 and 2025:
Insurance Premium Revenue
Quarter Ended
September 30, 2026
September 30, 2025
%
Chg.
Life insurance
$ 864,552
$ 844,483
2
Health insurance
446,857
386,524
16
Total
$ 1,311,409
$ 1,231,007
7
INSURANCE UNDERWRITING INCOME
Insurance underwriting margin is management's measure of profitability of the Company's life and health segments' underwriting performance, and consists of premiums less policy obligations (excluding interest on policy liabilities), commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance underwriting margins of the life and health segments, plus annuity and other income, less administrative expenses. It excludes the investment segment, interest on debt, Parent Company expense, stock compensation expense and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Results of Operations section above.
The following table summarizes Globe Life's insurance underwriting income by segment for the three months ended September 30, 2026 and 2025:
Insurance Underwriting Income
Quarter Ended
September 30, 2026
% of
Premium
September 30, 2025
% of
Premium
%
Chg.
Insurance underwriting margins:
Life
$ 458,168
53
$ 481,608
57
(5)
Health
115,637
26
108,374
28
7
573,805
589,982
(3)
Annuity and other income
3,184
2,920
Administrative expenses
(95,157)
(89,767)
Insurance underwriting income
$ 481,832
$ 503,135
(4)
Per share
$ 6.16
$ 6.13
—
The ratio of administrative expenses to premium was 7.3%, same as the year-ago quarter.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL
Our distribution channels consist of the following exclusive divisions: American Income Life Division (American Income), Liberty National Division (Liberty National), Family Heritage Division (Family Heritage), Direct to Consumer Division (Direct to Consumer); and an independent agency, United American Division (United American).
Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown at https://investors.globelifeinsurance.com at "Financial Reports and Other Financial Information."
Life Underwriting Margin
Quarter Ended
September 30,
2026
2025
Amount
% of Premium
Amount
% of Premium
% Chg.
American Income
$ 268,457
57
$ 261,123
58
3
Direct to Consumer
113,064
47
113,744
46
(1)
Liberty National
50,999
50
(1)
70,290
72
(1)
(27)
Other
25,648
52
(2)
36,451
73
(2)
(30)
Total
$ 458,168
53
$ 481,608
57
(5)
(1)
The decrease was due primarily to fluctuations in assumption updates. The margin excluding the impact of assumption updates for the third quarter of 2026 was 36.3%, compared to 35.9% in the year-ago quarter.
(2)
The decrease was due primarily to fluctuations in assumption updates. The margin excluding the impact of assumption updates for the third quarter of 2026 was 59.6%, compared to 65.3% in the year-ago quarter.
Life Premium
Quarter Ended
September 30,
2026
2025
%
Chg.
American Income
$ 470,362
$ 451,214
4
Direct to Consumer
243,083
244,828
(1)
Liberty National
102,000
98,190
4
Other
49,107
50,251
(2)
Total
$ 864,552
$ 844,483
2
Life Net Sales(1)
Quarter Ended
September 30,
2026
2025
%
Chg.
American Income
$ 96,611
$ 96,520
—
Direct to Consumer
24,023
27,176
(12)
Liberty National
25,978
24,296
7
Other
2,480
2,546
(3)
Total
$ 149,092
$ 150,538
(1)
(1)
Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL
Health Underwriting Margin
Quarter Ended
September 30,
2026
2025
Amount
% of
Premium
Amount
% of
Premium
% Chg.
United American
$ (6,371)
(3)
(1)
$ 16,098
9
(1)
Family Heritage
56,754
44
50,609
43
12
Liberty National
25,391
55
24,816
52
2
American Income
37,850
120
(2)
14,839
47
(2)
155
Direct to Consumer
2,013
10
2,012
10
—
Total
$ 115,637
26
$ 108,374
28
7
(1)
The underwriting loss was due primarily to an underwriting loss at Evry of approximately $16 million and a claims processing delay at the Centers for Medicare and Medicaid Services which resulted in approximately $7 million of excess prior period Medicare Supplement claims during the third quarter.
(2)
The increase in underwriting margin as a percentage of premium was due primarily to fluctuations in assumption updates. The margin excluding the impact of assumption updates for the third quarter of 2026 was 65.4%, compared to 59.7% in the year-ago quarter.
Health Premium
Quarter Ended
September 30,
2026
2025
%
Chg.
United American
$ 219,340
$ 169,735
29
Family Heritage
128,625
118,640
8
Liberty National
46,557
47,270
(2)
American Income
31,491
31,693
(1)
Direct to Consumer
20,844
19,186
9
Total
$ 446,857
$ 386,524
16
Health Net Sales(1)
Quarter Ended
September 30,
2026
2025
%
Chg.
United American
$ 47,687
$ 24,504
95
Family Heritage
34,645
33,063
5
Liberty National
7,374
8,482
(13)
American Income
3,888
4,623
(16)
Direct to Consumer
517
745
(31)
Total
$ 94,111
$ 71,417
32
(1)
Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL
Quarterly Average
Producing Agent Count(1)
Quarter Ended
Quarter Ended
September 30,
June 30,
2026
2025
% Chg.
2026
American Income
11,331
12,230
(7)
11,391
Liberty National
4,187
3,847
9
4,194
Family Heritage
1,565
1,553
1
1,608
(1)
The quarterly average producing agent count is based on the actual count at the beginning and end of each week during the period.
INVESTMENTS
Management uses excess investment income as the measure to evaluate the performance of the investment segment. It is defined as net investment income less the required interest attributable to policy liabilities. We also view excess investment income per diluted common share as an important and useful measure to evaluate performance of the investment segment, since it takes into consideration our stock repurchase program.
The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.
Excess Investment Income
Quarter Ended
September 30,
2026
2025
%
Chg.
Net investment income
$ 295,895
$ 286,013
3
Required interest on policy liabilities(1)
(257,950)
(249,130)
4
Excess investment income
$ 37,945
$ 36,883
3
Per share
$ 0.49
$ 0.45
9
(1)
Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure.
Net investment income and average invested assets both increased 3%. Required interest on policy liabilities and average policy liabilities both increased 4%.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
The composition of the investment portfolio at book value at September 30, 2026 is as follows:
Investment Portfolio
As of
September 30, 2026
Amount
% of Total
Fixed maturities at fair value(1)
$ 16,873,879
86
Mortgage loans
459,302
2
Policy loans
771,652
4
Other long-term investments(2)
1,433,301
7
Short-term investments
95,244
1
Total
$ 19,633,378
(1)
As of September 30, 2026, fixed maturities at amortized cost were $19.6 billion, net of $3.3 million of allowance for credit losses.
(2)
Includes $1.06 billion of investments accounted for under the fair value option which have a cost of $1.05 billion as of September 30, 2026.
Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of September 30, 2026 are as follows:
Fixed Maturity Portfolio by Sector
As of
September 30, 2026
Investment
Grade
Below
Investment
Grade
Total
Amortized
Cost, net
Corporate bonds
$ 14,884,822
$ 518,004
$ 15,402,826
Municipals
3,476,434
1,958
3,478,392
Government, agencies, and GSEs(1)
466,313
—
466,313
Other asset-backed securities
160,911
52,649
213,560
Total
$ 18,988,480
$ 572,611
$ 19,561,091
(1)
Government-Sponsored Enterprises
Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at September 30, 2026 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).
As of
Amortized
Cost
Allowance for
Credit Losses
Net Unrealized
Gains (Losses)
Fair
Value
September 30, 2026
$ 19,564,388
$ (3,297)
$ (2,687,212)
$ 16,873,879
At amortized cost, net of allowance for credit losses, and at fair value, 97% of fixed maturities were rated "investment grade." The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.33% during the third quarter of 2026, compared with 5.26% in the year-ago quarter.
Globe Life is not a party to any credit default swaps and does not participate in securities lending.
GLOBE LIFE INC.
Earnings Release—Q3 2026
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
Comparable information for acquisitions of fixed maturity and other investments is as follows:
Fixed Maturity Acquisitions
Quarter Ended
September 30,
2026
2025
Amount
$ 832,540
$ 279,333
Average annual effective yield
6.4 %
6.3 %
Average rating
A
A+
Average life (in years) to:
Next call
32.5
21.8
Maturity
34.9
29.3
Other Investment Acquisitions
Quarter Ended
September 30,
2026
2025
Limited partnerships
$ 23,069
$ 34,143
Mortgage loans
70,172
51,886
Common stock
970
751
Total
$ 94,211
$ 86,780
SHARE REPURCHASES:
During the quarter, the Company repurchased 1.1 million shares of Globe Life Inc. common stock at a total cost of $185 million and an average share price of $175.61. The Company expects to spend $725 million to $775 million to repurchase common stock for the full year 2026, compared to the previous guidance of $670 million to $700 million.
LIQUIDITY/CAPITAL:
Globe Life's operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.
EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2026 and 2027:
The Company adjusted full-year 2026 earnings guidance to a range of $15.35 to $15.65 due to two items impacting the results at our United American General Agency division, rather than a fundamental change in our underlying core business: high-severity claims at Evry, a developing group health business still growing and scaling to a size that will enable stable results, and a claims processing delay at the Centers for Medicare and Medicaid Services which resulted in excess Medicare Supplement claims during the third quarter. For the year ending December 31, 2027, we estimate that net operating income per share will be in the range of $16.10 to $17.10, an increase of 7.1% at the midpoint.
NON-GAAP MEASURES:
In this news release, Globe Life includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life's definitions of non-GAAP measures may differ from other companies' definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at https://investors.globelifeinsurance.com on the Investors page under "Financial Reports and Other Financial Information."
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:
1) Economic and other conditions, including the impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the U.S. and other countries, and other governmental actions on the U.S. economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions;
2) Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);
3) Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;
4) Ratings changes with respect to our financial strength and credit ratings and potential adverse impacts to liquidity;
6) General economic, industry sector or individual debt issuers' financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may compromise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer's ability to make principal and/or interest payments due on those securities;
7) Changes in the competitiveness of the Company's products and pricing;
8) Litigation results and regulatory actions;
9) Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation);
10) The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;
11) The ability of our subsidiaries to pay dividends to the Parent Company and to receive required regulatory approvals on such amounts;
12) The customer response to new products and marketing initiatives;
13) Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;
14) Compromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems;
15) The Company's ability to attract and retain agents;
16) The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity and demand for our products; and
17) Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.
Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission, including those described in the "Risk Factors" section of our most recent Annual Report on Form 10-K. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
Globe Life will provide a live audio webcast of its third quarter 2026 earnings release conference call with financial analysts at 11:00 am (Eastern) tomorrow, October 22, 2026. Access to the live webcast and replay will be available at https://investors.globelifeinsurance.com on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at "Financial Reports."
APPENDIX
GLOBE LIFE INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Revenue:
Life premium
$ 864,552
$ 844,483
$ 2,578,524
$ 2,513,890
Health premium
446,857
386,524
1,300,620
1,134,414
Total premium
1,311,409
1,231,007
3,879,144
3,648,304
Net investment income
295,895
286,013
879,539
848,796
Realized gains (losses)
(12,612)
(4,987)
(6,952)
(23,476)
Other income
1,245
955
3,555
1,073
Total revenue
1,595,937
1,512,988
4,755,286
4,474,697
Benefits and expenses:
Life policyholder benefits(1)
414,701
381,511
1,447,510
1,410,622
Health policyholder benefits(2)
272,129
227,940
812,875
691,793
Other policyholder benefits
7,268
7,171
21,548
20,970
Total policyholder benefits
694,098
616,622
2,281,933
2,123,385
Amortization of deferred acquisition costs
124,654
114,074
363,473
330,990
Commissions, premium taxes, and non-deferred acquisition costs
174,863
157,494
518,503
479,228
Other operating expense
123,274
111,562
353,260
328,601
Interest expense
37,814
36,134
107,864
106,011
Total benefits and expenses
1,154,703
1,035,886
3,625,033
3,368,215
Income before income taxes
441,234
477,102
1,130,253
1,106,482
Income tax benefit (expense)
(80,127)
(89,259)
(210,873)
(211,327)
Net income
$ 361,107
$ 387,843
$ 919,380
$ 895,155
Basic net income per common share
$ 4.71
$ 4.81
$ 11.86
$ 10.91
Diluted net income per common share
$ 4.62
$ 4.73
$ 11.64
$ 10.77
(1)
Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, gain of $116.7 million before tax for the three months ended September 30, 2026 and a total remeasurement gain of $149.5 million before tax for the same period in 2025. Net of total remeasurement gain of $159.1 million for the nine months ended September 30, 2026, and a total remeasurement gain of $174.7 million for the same period in 2025.
(2)
Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, gain of $29.1 million before tax for the three months ended September 30, 2026 and a total remeasurement gain of $8.8 million before tax for the same period in 2025. Net of a total remeasurement gain of $36.5 million for the nine months ended September 30, 2026, and a total remeasurement gain of $13.2 million for the same period in 2025.
Conference call at 3:30 p.m. Central time today on ti.com/ir
, /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $6.06 billion, net income of $2.43 billion and earnings per share of $2.62. Earnings per share included a 1-cent reduction that was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:
"Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center. "Our cash flow from operations of $9.9 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $8.4 billion. "Over the past 12 months we invested $4.0 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.8 billion to owners. "TI's fourth quarter outlook is for revenue in the range of $5.80 billion to $6.30 billion and earnings per share between $2.45 and $2.79." Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.
Earnings summary
(In millions, except per-share amounts)
Q3 2026
Q3 2025
Change
Revenue
$
6,055
$
4,742
28 %
Operating profit
$
2,874
$
1,663
73 %
Net income
$
2,425
$
1,364
78 %
Earnings per share
$
2.62
$
1.48
77 %
Cash generation
Trailing 12 Months
(In millions)
Q3 2026
Q3 2026
Q3 2025
Change
Cash flow from operations
$
3,419
$
9,896
$
6,897
43 %
Free cash flow
$
2,956
$
8,422
$
2,415
249 %
Free cash flow % of revenue
40.6 %
14.0 %
Cash return
Trailing 12 Months
(In millions)
Q3 2026
Q3 2026
Q3 2025
Change
Dividends paid
$
1,298
$
5,174
$
4,949
5 %
Stock repurchases
$
48
$
636
$
1,611
(61) %
Total cash returned
$
1,346
$
5,810
$
6,560
(11) %
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
For Three Months Ended
September 30,
(In millions, except per-share amounts)
2026
2025
Revenue
$
6,055
$
4,742
Cost of revenue (COR)
2,168
2,019
Gross profit
3,887
2,723
Research and development (R&D)
530
518
Selling, general and administrative (SG&A)
476
457
Acquisition charges
7
—
Restructuring charges/other
—
85
Operating profit
2,874
1,663
Other income (expense), net (OI&E)
72
62
Interest and debt expense
141
141
Income before income taxes
2,805
1,584
Provision for income taxes
380
220
Net income
$
2,425
$
1,364
Diluted earnings per common share
$
2.62
$
1.48
Average shares outstanding:
Basic
914
909
Diluted
921
914
Cash dividends declared per common share
$
1.42
$
1.36
Supplemental Information
(Quarterly, except as noted)
Provision for income taxes is based on the following:
Operating taxes (calculated using the estimated annual effective tax rate)
$
390
$
249
Discrete tax items
(10)
(29)
Provision for income taxes (effective taxes)
$
380
$
220
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted
EPS is calculated using the following:
Net income
$
2,425
$
1,364
Income allocated to RSUs
(14)
(8)
Income allocated to common stock for diluted EPS
$
2,411
$
1,356
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
September 30,
(In millions, except par value)
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
4,211
$
3,311
Short-term investments
3,931
1,875
Accounts receivable, net of allowances of ($27) and ($21)
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741
1,741
1,741
Paid-in capital
5,202
4,410
Retained earnings
54,282
52,369
Treasury common stock at cost
Shares: September 30, 2026 – 827; September 30, 2025 – 832
(41,955)
(41,744)
Accumulated other comprehensive income (loss), net of taxes (AOCI)
(85)
(149)
Total stockholders' equity
19,185
16,627
Total liabilities and stockholders' equity
$
36,839
$
35,004
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For Three Months Ended
September 30,
(In millions)
2026
2025
Cash flows from operating activities
Net income
$
2,425
$
1,364
Adjustments to net income:
Depreciation
555
497
Amortization of capitalized software
21
20
Stock compensation
95
93
Deferred taxes
(26)
3
Increase (decrease) from changes in:
Accounts receivable
(100)
(128)
Inventories
(67)
(17)
Prepaid expenses and other current assets
16
18
Accounts payable and accrued expenses
75
86
Accrued compensation
135
121
Income taxes payable
319
107
Changes in funded status of retirement plans
(6)
13
Other
(23)
13
Cash flows from operating activities
3,419
2,190
Cash flows from investing activities
Capital expenditures
(463)
(1,197)
Proceeds from CHIPS Act incentives
—
75
Proceeds from asset sales
—
1
Purchases of short-term investments
(1,969)
(805)
Proceeds from short-term investments
1,399
1,260
Other
46
(15)
Cash flows from investing activities
(987)
(681)
Cash flows from financing activities
Repayment of debt
(500)
—
Dividends paid
(1,298)
(1,236)
Stock repurchases
(48)
(119)
Proceeds from common stock transactions
16
125
Other
(51)
(12)
Cash flows from financing activities
(1,881)
(1,242)
Net change in cash and cash equivalents
551
267
Cash and cash equivalents at beginning of period
3,660
3,044
Cash and cash equivalents at end of period
$
4,211
$
3,311
Supplemental cash flow information
Investment tax credit (ITC) used to reduce income taxes payable
$
79
$
43
Proceeds from CHIPS Act incentives
—
75
Total cash benefit related to the CHIPS Act
$
79
$
118
Segment results
(In millions)
Q3 2026
Q3 2025
Change
Analog:
Revenue
$
4,911
$
3,729
32 %
Operating profit
$
2,505
$
1,486
69 %
Embedded Processing:
Revenue
$
858
$
709
21 %
Operating profit
$
227
$
108
110 %
Other:
Revenue
$
286
$
304
(6) %
Operating profit *
$
142
$
69
106 %
* Includes Acquisition charges and Restructuring charges/other
Non-GAAP financial information
This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.
We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP measures is provided in the table below.
For Three
Months
Ended
September 30,
For 12
Months
Ended
September 30,
(In millions)
2026
2026
2025
Change
Cash flow from operations (GAAP) *
$
3,419
$
9,896
$
6,897
43 %
Capital expenditures
(463)
(2,578)
(4,817)
Proceeds from CHIPS Act incentives
—
1,104
335
Free cash flow (non-GAAP)
$
2,956
$
8,422
$
2,415
249 %
Revenue
$
20,766
$
17,266
Cash flow from operations as a percentage of revenue (GAAP)
47.7 %
39.9 %
Free cash flow as a percentage of revenue (non-GAAP)
40.6 %
14.0 %
* Includes cash benefits of $79 million, $469 million and $302 million from the CHIPS Act ITC used to reduce income taxes payable for the
three months ended September 30, 2026, and the twelve months ended September 30, 2026 and 2025, respectively.
This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.
Notice regarding forward-looking statements
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:
Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies; Our ability to compete in products and prices in an intensely competitive industry; Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts; Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments; Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties; Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings; Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity; Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology; Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession; Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts; Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors; Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment; Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability; Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets; Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims; Our ability to make principal and interest payments on our debt when due; Instability in the global credit and financial markets; and Impairments of our non-financial assets. For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of our most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
Record net sales of $5.21 billion, up 13% sequentially, with record tons sold up 4.3% EPS of $7.84; non-GAAP EPS of $8.02, up 120% year-over-year, significantly exceeding expectationsPretax income of $531.9 million, up 115% year-over-yearIncreased share repurchase program to $2.5 billion PHOENIX, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) (“Reliance,” the “Company,” “we,” “our,” or “us”) today reported its financial results for the third quarter ended September 30, 2026.
(in millions, except tons sold in thousands, per ton and per share amounts) Seq.
Nine Months Ended
September 30, YoY YoY Q3 2026
Q2 2026
Chg
2026 2025 Chg Q3 2025
Chg Income Statement Summary: Net sales$5,213.2 $4,630.0 12.6% $13,869.2 $10,795.7 28.5% $3,651.2 42.8% Gross profit1$1,453.9 $1,300.5 11.8% $3,926.3 $3,152.8 24.5% $1,031.6 40.9% Gross profit margin1 27.9% 28.1% (0.2) pts 28.3% 29.2% (0.9) pts 28.3% (0.4) pts Non-GAAP gross profit margin1,2 28.0% 28.1% (0.1) pts 28.4% 29.3% (0.9) pts 28.3% (0.3) pts LIFO expense (% of sales) 3.6% 2.4% 1.2 pts 2.4% 0.7% 1.7 pts 0.6% 3.0 pts Non-GAAP gross profit margin – FIFO1,2 31.6% 30.5% 1.1 pts 30.8% 30.0% 0.8 pts 29.0% 2.6 pts Pretax income$531.9 $429.8 23.8% $1,311.2 $814.4 61.0% $247.7 114.7% Non-GAAP pretax expense (income) adjustments2$12.3 $(1.1) $15.5 $7.1 $3.7 Non-GAAP pretax income2$544.2 $428.7 26.9% $1,326.7 $821.5 61.5% $251.4 116.5% LIFO expense$187.5 $112.5 $337.5 $75.0 $25.0 Non-GAAP pretax income – FIFO2$731.7 $541.2 35.2% $1,664.2 $896.5 85.6% $276.4 164.7% Pretax income margin 10.2% 9.3% 0.9 pts 9.5% 7.5% 2.0 pts 6.8% 3.4 pts Non-GAAP pretax income margin2 10.4% 9.3% 1.1 pts 9.6% 7.6% 2.0 pts 6.9% 3.5 pts Non-GAAP pretax income margin – FIFO2 14.0% 11.7% 2.3 pts 12.0% 8.3% 3.7 pts 7.6% 6.4 pts Net income – Reliance$402.9 $322.9 24.8% $990.7 $622.9 59.0% $189.5 112.6% Diluted EPS$7.84 $6.29 24.6% $19.21 $11.74 63.6% $3.59 118.4% Non-GAAP diluted EPS2$8.02 $6.27 27.9% $19.43 $11.84 64.1% $3.64 120.3% LIFO expense per diluted share2$2.74 $1.64 $4.91 $1.06 $0.35 Non-GAAP diluted EPS – FIFO2$10.76 $7.91 36.0% $24.34 $12.90 88.7% $3.99 169.7% Balance Sheet and Cash Flow Data: Cash provided by operations$212.0 $162.2 30.7% $525.6 $555.3 (5.3)% $261.8 (19.0)% Free cash flow2$133.0 $68.8 93.3% $289.0 $299.6 (3.5)% $180.6 (26.4)% Net debt / total capital2 15.3% 16.2% 15.3% 13.3% 13.3% Net debt / EBITDA2 0.8x 0.9x 0.8x 0.9x 0.9x Total debt / EBITDA2 0.9x 1.1x 0.9x 1.1x 1.1x Capital Allocation Data: Acquisitions, net$– $– $– $2.8 $– Capital expenditures$79.0 $93.4 $236.6 $255.7 $81.2 Dividends$63.8 $63.8 $194.2 $191.2 $62.9 Share repurchases$44.7 $– $278.9 $394.0 $60.9 Key Business Metrics: Tons sold 1,867.2 1,790.1 4.3% 5,330.0 4,859.4 9.7% 1,615.5 15.6% Average selling price per ton sold$2,815 $2,602 8.2% $2,618 $2,229 17.5% $2,271 24.0% Please refer to the footnotes at the end of this press release for additional information.
Management Commentary
“Reliance delivered an exceptional third quarter with record quarterly net sales and our third-highest quarterly earnings per share. We capitalized on a favorable market environment, characterized by continued healthy demand and tight supply, leading to increased price levels for most carbon steel products. Our long-term strategy of supporting both our valued customers and key domestic mill partners positioned us particularly well to benefit from these dynamics,” said Karla Lewis, President and Chief Executive Officer of Reliance. “Our scale, product diversification, expansive value-added processing capabilities, and ability to source the inventory our customers need, led by the strong execution of our teams in the field, drove our exceptional results. The U.S. Department of Homeland Security border wall contract we were awarded earlier this year continued to ramp and delivered another meaningful contribution to third quarter earnings. Our smart, profitable growth strategy once again produced record quarterly tons shipped, contributing to non-GAAP diluted earnings per share of $8.02, up 120% year-over-year.”
Mrs. Lewis continued, “Our strong balance sheet and ample liquidity continue to provide us the flexibility to concurrently invest in our businesses, pursue strategic growth opportunities, and return capital to our stockholders. Looking ahead, we believe Reliance remains exceptionally well positioned as customer optimism remains high and strengthens across infrastructure, semiconductor, general manufacturing, and aerospace. Together, our proven business model, outstanding team, and current market dynamics give us confidence in our ability to gain market share and invest through cycles to continue driving profitable growth and strong stockholder returns.”
Third Quarter 2026 Financial Highlights
Earnings per share were $7.84 and non‑GAAP earnings per diluted share were $8.02, significantly exceeding management’s guidance of $6.40 to $6.60 and up 120% year-over-year. Results also include $2.74 per share of LIFO expense compared to management’s expectation of $1.10, representing an incremental $1.64 per share negative impact, primarily due to higher-than-anticipated carbon steel product costs. In addition, third quarter earnings include a $0.74 per share contribution from the U.S. border wall project, exceeding management’s expectation of approximately $0.60 per share.
Quarterly tons sold increased 4.3% sequentially, including a 3.7% contribution from the U.S. border wall project. Excluding the border wall project, tons sold increased 0.6% sequentially, exceeding management’s expectation of a 2% to 4% decline. Reliance’s third quarter year-over-year growth in tons sold of 15.6% includes a 9.4% contribution from the border wall project and exceeds the industry-wide increase of 10.1% reported by the Metals Service Center Institute (“MSCI”).
Average selling price per ton sold increased 8.2% sequentially, which includes a 1.7% product mix-related reduction attributable to the U.S. border wall project, exceeding management’s expectation of flat to up 2.0% due to stronger-than-anticipated carbon steel pricing.
Gross profit of $1.45 billion represented the second-highest quarterly result in the Company’s history, as gross profit dollars per ton continued to increase in the third quarter across carbon and stainless steel products and remained historically strong for aluminum products. Gross profit margin of 27.9% decreased 20 basis points sequentially due to increased LIFO expense associated with carbon steel costs rising significantly more than anticipated and product mix impact associated with the U.S. border wall project. Non‑GAAP FIFO gross profit margin, which represents management’s ongoing assessment of operating performance, increased 110 basis points sequentially to 31.6% despite a 60 basis point year-over-year reduction attributable to the U.S. border wall project. The project’s below-average operating costs per ton contributed 40 basis points of year-over-year pretax income margin expansion during the third quarter, despite its dilutive impact on gross profit margin.
Higher shipments and improved gross profit per ton, supported by pricing discipline and continued market share gains, together with the contribution from the U.S. border wall project, drove a 116% year-over-year increase in non-GAAP pretax income to $544.2 million.
End Market Commentary
Non-residential construction demand (including infrastructure), Reliance’s largest end market by tons, improved compared to the third quarter of 2025. Strong demand from data centers, energy infrastructure and public infrastructure projects continued to offset softness in various non-residential construction sectors. The Company expects non-residential construction demand levels to remain solid in the fourth quarter of 2026, subject to normal seasonality and potential headwinds from supply availability.
Demand across the broader manufacturing end market Reliance serves improved compared to the third quarter of 2025, supported by continued strength in industrial machinery, shipbuilding, military, and construction machinery sectors. The Company anticipates demand for its products across the broader manufacturing sector will remain healthy in the fourth quarter of 2026 subject to the customary seasonal slowdown.
Demand in aerospace improved compared to the third quarter of 2025. Reliance anticipates commercial aerospace demand to modestly improve in the fourth quarter of 2026, with gradual build-rate increases and growing backlogs supporting continued improvement. Demand in the defense and space-related portions of Reliance’s aerospace business is expected to remain robust in the fourth quarter of 2026.
Demand for the toll processing services Reliance provides to the automotive market improved from the third quarter of 2025. The Company expects demand for automotive toll processing to remain at healthy levels in the fourth quarter of 2026. Reliance’s toll processing operations remain flexible and able to quickly adapt to the variable demands of the automotive market.
Demand for certain products Reliance sells into the semiconductor market meaningfully improved compared to the third quarter of 2025, supported by increasing data center activity. The Company anticipates demand for its semiconductor products will continue to improve in the fourth quarter of 2026.
Balance Sheet, Cash Flow and Stockholder Returns
As of September 30, 2026, Reliance had $246.0 million of cash and cash equivalents and total debt of $1.6 billion, including $495 million outstanding under its $1.5 billion revolving credit facility. Cash flow from operations was $212.0 million in the third quarter of 2026, despite a significant investment in working capital driven by robust shipment volumes and higher metals prices.
The Company returned approximately $109 million to its stockholders in the third quarter of 2026 paying dividends of $64 million and repurchasing $45 million of its shares at an average price of approximately $395 per share. Reliance’s 2026 share repurchases have reduced outstanding common shares by 3% year-over-year. On October 20, 2026, Reliance’s Board of Directors approved an amendment to Reliance’s existing share repurchase plan, increasing the repurchase authorization to $2.5 billion without a set expiration date. Since 2021, Reliance has repurchased $3.4 billion of its common stock at an average price of approximately $236 per share, reducing issued and outstanding common shares by 23%.
On October 20, 2026, the Board of Directors declared a quarterly cash dividend of $1.25 per share of common stock, payable on December 4, 2026 to stockholders of record as of November 20, 2026.
Fourth Quarter 2026 Business Outlook
Reliance anticipates fourth quarter 2026 demand to remain at healthy levels across its key products and end markets, despite ongoing domestic and international trade policy uncertainty and the continued conflicts in Iran and Ukraine, which could pose supply availability and macroeconomic risks.
Excluding the impact of the border wall project, the Company estimates tons sold in the fourth quarter of 2026 will be up 4.0% to 6.0% compared to the fourth quarter of 2025, and, consistent with seasonal trends, down 5.5% to 7.5% compared to the third quarter of 2026. Including an estimated 9.5% year-over-year contribution from the U.S. border wall project, we anticipate tons sold will be up 13.5% to 15.5% compared to the fourth quarter of 2025.
Reliance expects its average selling price per ton sold for the fourth quarter of 2026 will be up 1.0% to 3.0% compared to the third quarter of 2026.
Based on these assumptions, and inclusive of LIFO expense of $112.5 million, or $1.64 per diluted share, the Company anticipates non‑GAAP earnings per diluted share in the range of $7.40 to $7.60 for the fourth quarter of 2026, up over 200% year‑over‑year. This outlook includes approximately $0.70 of earnings per share from shipments associated with the U.S. border wall project at pretax income margin levels above the Company average.
Conference Call Details
Reliance will host a conference call and simultaneous webcast to discuss its third quarter 2026 financial results and business outlook on Thursday, October 22, 2026 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen to the live call by telephone, please dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time and use conference ID: 13762971. A live listen-only webcast of the conference call will be available in the Investors section of the Company’s website at investor.reliance.com.
For those unable to participate during the live webcast, a replay of the call will also be available beginning that same day at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on November 5, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13762971. A replay of the webcast will remain available at investor.reliance.com for 90 days.
About Reliance, Inc.
With over 85 years of operating experience, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 310 locations in 41 states and 10 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2025, Reliance’s average order size was $3,120, approximately 49% of orders included value-added processing, and approximately 40% of orders were delivered within 24 hours. Reliance’s press releases and additional information are available on the Company’s website at reliance.com.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s: industry and end markets; business strategies; acquisitions; expectations concerning the Company’s future growth and profitability; ability to generate industry-leading returns for its stockholders; future demand and metals pricing; results of operations; margins; profitability; taxes; liquidity; cash flows; capital expenditures; expectations for and impacts from macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown; anticipated effects from regulations and regulatory changes, including taxation, tariffs and other trade barriers; litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions.
These forward-looking statements are based on management’s estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by Reliance, as well as developments beyond its control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S. and foreign trade policies and programs, including tariffs and trade policies and programs specifically affecting metals product markets and pricing; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact Reliance, its customers and suppliers; metals pricing; demand for Reliance’s products and services; the possibility that the expected benefits of government contracts, including the U.S. border wall project, acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions. Deteriorations in economic conditions, including as a result of tariffs or trade barriers, economic policies, inflation, economic recession, slowing growth, outbreaks of infectious disease, or geopolitical conflicts such as in Ukraine and Iran, could lead to a decline in demand for the Company’s products and services and negatively impact its business, and may also impact financial markets and corporate credit markets which could adversely impact the Company’s access to financing or the terms of any financing. The Company cannot at this time predict all of the impacts of domestic and foreign tariffs and trade policies, inflation, product price fluctuations, economic recession, outbreaks of infectious disease, or geopolitical conflicts and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.
The statements contained in this press release speak only as of the date hereof, and Reliance disclaims any and all obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason, except as may be required by law. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents Reliance files or furnishes with the United States Securities and Exchange Commission.
Q3 2026 Major Commodity Metrics Tons Sold (tons in thousands; % chg) Avg. Selling Price per Ton Sold (% chg) Q3 2026
Q2 2026
Seq. Chg
Q3 2025
YoY Chg
Seq. Chg
YoY Chg
Carbon steel 1,570.4 1,480.2 6.1% 1,326.1 18.4% 12.1% 29.5% Aluminum 85.5 86.0 (0.6%) 80.4 6.3% 3.5% 30.4% Stainless steel 81.6 81.3 0.4% 75.9 7.5% 6.5% 20.6% Alloy 30.2 36.6 (17.5%) 29.7 1.7% 21.6% 15.0% Copper & brass 5.8 5.8 — 5.6 3.6% 4.4% 20.2% Sales ($ in millions; % chg) Q3 2026
Q2 2026
Seq. Chg
Q3 2025
YoY Chg
Carbon steel$3,119.3 $2,621.4 19.0% $2,032.5 53.5% Aluminum$861.7 $837.9 2.8% $621.5 38.6% Stainless steel$634.9 $595.2 6.7% $489.9 29.6% Alloy$186.8 $186.2 0.3% $159.6 17.0% Copper & brass$129.1 $123.7 4.4% $102.6 25.8% Year-to-Date (9 Months) Major Commodity Metrics Tons Sold (tons in thousands; % chg) Avg. Selling Price per Ton Sold (% chg) 2026 2025 YoY Chg
YoY Chg
Carbon steel 4,434.5 3,996.9 10.9% 20.0% Aluminum 256.6 248.3 3.3% 28.6% Stainless steel 241.1 227.4 6.0% 12.6% Alloy 99.8 92.3 8.1% 5.5% Copper & brass 16.5 16.1 2.5% 22.0% Sales ($ in millions; % chg) 2026 2025 YoY Chg
Carbon steel$7,958.8 $5,980.9 33.1% Aluminum$2,454.2 $1,847.0 32.9% Stainless steel$1,769.1 $1,482.3 19.3% Alloy$553.6 $485.5 14.0% Copper & brass$354.7 $283.2 25.2% Sales by Product Nine Months Ended
September 30,
Q3 2026
Q2 2026
Q3 2025
2026 2025 Carbon steel structurals 13% 12% 12% 12% 12% Carbon steel tubing 13% 12% 9% 12% 9% Carbon steel plate 12% 11% 12% 12% 12% Hot-rolled steel sheet & coil 9% 9% 9% 9% 9% Galvanized steel sheet & coil 5% 5% 5% 5% 5% Carbon steel bar 4% 4% 5% 4% 5% Cold-rolled steel sheet & coil 2% 2% 2% 2% 2% Carbon steel 58% 55% 54% 56% 54% Heat-treated aluminum plate 5% 5% 5% 5% 5% Common alloy aluminum sheet & coil 5% 5% 5% 5% 5% Aluminum bar & tube 4% 5% 5% 5% 5% Common alloy aluminum plate 1% 1% 1% 1% 1% Heat-treated aluminum sheet & coil 1% 1% 1% 1% 1% Aluminum 16% 17% 17% 17% 17% Stainless steel bar & tube 6% 6% 6% 6% 6% Stainless steel sheet & coil 4% 4% 5% 4% 5% Stainless steel plate 2% 2% 2% 2% 2% Stainless steel 12% 12% 13% 12% 13% Alloy 3% 4% 4% 4% 4% Copper & brass 2% 3% 3% 2% 3% Miscellaneous* 5% 5% 5% 5% 5% Toll processing & logistics 4% 4% 4% 4% 4% Other 9% 9% 9% 9% 9% Total 100% 100% 100% 100% 100% * Includes titanium, fabricated parts, PVC pipe and scrap. RELIANCE, INC.UNAUDITED CONSOLIDATED STATEMENTS OF INCOME(in millions, except shares in thousands and per share amounts) Three Months Ended
Nine Months Ended
September 30,
September 30,
2026 2025 2026 2025 Net sales$5,213.2 $3,651.2 $13,869.2 $10,795.7 Costs and expenses: Cost of sales (exclusive of depreciation and amortization shown below) 3,759.3 2,619.6 9,942.9 7,642.9 Warehouse, delivery, selling, general and administrative (“SG&A”) 829.7 701.3 2,353.9 2,097.5 Depreciation and amortization 70.1 70.5 208.8 208.9 Impairment 2.0 – 2.0 – 4,661.1 3,391.4 12,507.6 9,949.3 Operating income 552.1 259.8 1,361.6 846.4 Other (income) expense: Interest expense 18.4 14.4 52.0 40.2 Other expense (income), net 1.8 (2.3) (1.6) (8.2)Income before income taxes 531.9 247.7 1,311.2 814.4 Income tax provision 128.5 57.7 318.6 189.7 Net income 403.4 190.0 992.6 624.7 Less: net income – noncontrolling interests 0.5 0.5 1.9 1.8 Net income – Reliance$402.9 $189.5 $990.7 $622.9 Earnings per share: Basic$7.90 $3.61 $19.34 $11.82 Diluted$7.84 $3.59 $19.21 $11.74 Weighted average shares outstanding: Basic 51,019 52,482 51,232 52,720 Diluted 51,388 52,817 51,577 53,044 Cash dividends declared per common share$1.25 $1.20 $3.75 $3.60 RELIANCE, INC.UNAUDITED CONSOLIDATED BALANCE SHEETS(in millions, except shares in thousands and par value) September 30,
December 31,
2026 2025*
Assets Current assets: Cash and cash equivalents$246.0 $216.6 Accounts receivable, less allowance for credit losses of $23.4 and $22.1 2,477.2 1,539.9 Inventories 2,482.5 2,187.8 Prepaid expenses and other current assets 169.7 165.6 Income taxes receivable 4.8 31.2 Total current assets 5,380.2 4,141.1 Property, plant and equipment, net 2,671.1 2,633.3 Operating lease right-of-use assets 321.3 315.2 Goodwill 2,173.8 2,169.9 Intangible assets, net 935.7 960.1 Cash surrender value of life insurance policies, net 30.2 48.0 Other long-term assets 102.8 105.7 Total assets$11,615.1 $10,373.3 Liabilities and Equity Current liabilities: Accounts payable$649.4 $375.2 Accrued expenses 190.0 150.0 Accrued compensation and retirement benefits 257.2 198.1 Accrued insurance costs 62.5 56.4 Current maturities of long-term debt – 0.7 Current maturities of operating lease liabilities 67.9 67.7 Income taxes payable 80.1 – Total current liabilities 1,307.1 848.1 Long-term debt 1,639.3 1,420.2 Operating lease liabilities 259.0 250.9 Long-term retirement benefits 27.1 24.9 Other long-term liabilities 75.1 74.1 Deferred income taxes 574.1 575.6 Total liabilities 3,881.7 3,193.8 Commitments and contingencies Equity: Preferred stock, $0.001 par value: 5,000 shares authorized; none issued or outstanding – – Common stock and additional paid-in capital, $0.001 par value and 200,000 shares authorized Issued and outstanding shares—50,942 and 51,735 0.1 0.1 Retained earnings 7,813.1 7,257.6 Accumulated other comprehensive loss (89.5) (87.6)Total Reliance stockholders’ equity 7,723.7 7,170.1 Noncontrolling interests 9.7 9.4 Total equity 7,733.4 7,179.5 Total liabilities and equity$11,615.1 $10,373.3 * Derived from audited financial statements. RELIANCE, INC.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions) Nine Months Ended
September 30,
2026 2025 Operating activities: Net income$992.6 $624.7 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 208.8 208.9 Impairment 2.0 – Stock-based compensation 55.6 43.2 Other 8.6 (9.1)Changes in operating assets and liabilities: Accounts receivable (938.6) (331.0)Inventories (293.3) (275.4)Prepaid expenses and other assets 80.6 154.4 Accounts payable and other liabilities 409.3 139.6 Net cash provided by operating activities 525.6 555.3 Investing activities: Acquisitions – (2.8)Purchases of property, plant and equipment (236.6) (255.7)Proceeds from sales of property, plant and equipment 16.2 13.8 Other 4.5 12.0 Net cash used in investing activities (215.9) (232.7) Financing activities: Proceeds from long-term debt borrowings 2,248.0 2,062.0 Principal payments on long-term debt (2,030.7) (1,824.0)Cash dividends and dividend equivalents (194.2) (191.2)Share repurchases (278.9) (394.0)Taxes paid on net-settled restricted stock units (15.3) (11.8)Excise tax on repurchase of common shares (5.4) (10.0)Other (4.2) (18.2)Net cash used in financing activities (280.7) (387.2)Effect of exchange rate changes on cash and cash equivalents 0.4 7.7 Increase (decrease) in cash and cash equivalents 29.4 (56.9)Cash and cash equivalents, beginning balance 216.6 318.1 Cash and cash equivalents, ending balance$246.0 $261.2 Supplemental cash flow information: Interest paid$49.2 $37.8 Income taxes paid, net$213.6 $115.7 RELIANCE, INC.NON-GAAP RECONCILIATION(in millions, except per share amounts) Net Income Diluted EPSThree Months Ended
September 30,
June 30,
September 30,
September 30,
June 30,
September 30,
2026 2026 2025 2026 2026 2025 Net income – Reliance$402.9 $322.9 $189.5 $7.84 $6.29 $3.59 Impairment and restructuring charges 2.4 1.1 1.2 0.05 0.02 0.02 Settlement charges 9.9 1.5 2.2 0.19 0.03 0.04 Debt financing expenses – – 0.3 – – 0.01 Gains on non-core asset sales – (3.7) – – (0.07) – Income tax (benefit) expense on adjustments (3.1) 0.3 (0.9) (0.06) – (0.02)Non-GAAP net income – Reliance 412.1 322.1 192.3 8.02 6.27 3.64 LIFO expense, net of tax 140.6 84.4 18.8 2.74 1.64 0.35 Non-GAAP net income – FIFO$552.7 $406.5 $211.1 $10.76 $7.91 $3.99 Net Income Diluted EPS Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2026 2025 2026 2025 Net income – Reliance $990.7 $622.9 $19.21 $11.74 Impairment and restructuring charges 7.3 13.7 0.14 0.26 Settlement charges 11.9 2.2 0.23 0.04 Debt financing expenses – 0.3 – – Gains on non-core asset sales (3.7) (9.1) (0.07) (0.17) Income tax benefit on adjustments (3.9) (1.7) (0.08) (0.03) Non-GAAP net income – Reliance 1,002.3 628.3 19.43 11.84 LIFO expense, net of tax 253.1 56.3 4.91 1.06 Non-GAAP net income – FIFO $1,255.4 $684.6 $24.34 $12.90 Three Months Ended Nine Months Ended September 30,
June 30,
September 30,
September 30,
September 30,
2026 2026 2025 2026 2025 Pretax income$531.9 $429.8 $247.7 $1,311.2 $814.4 Impairment and restructuring charges 2.4 1.1 1.2 7.3 13.7 Settlement charges 9.9 1.5 2.2 11.9 2.2 Debt financing expenses – – 0.3 – 0.3 Gains on non-core asset sales – (3.7) – (3.7) (9.1) Total non-GAAP pretax expense (income) adjustments 12.3 (1.1) 3.7 15.5 7.1 Non-GAAP pretax income 544.2 428.7 251.4 1,326.7 821.5 LIFO expense 187.5 112.5 25.0 337.5 75.0 Non-GAAP pretax income – FIFO$731.7 $541.2 $276.4 $1,664.2 $896.5 Three Months Ended Nine Months Ended September 30,
June 30,
September 30,
September 30,
September 30,
2026 2026 2025 2026 2025 Gross profit – LIFO$1,453.9 $1,300.5 $1,031.6 $3,926.3 $3,152.8 Settlement charge 4.4 – – 4.4 – Restructuring charges – 0.4 0.8 1.4 8.9 Non-GAAP gross profit 1,458.3 1,300.9 1,032.4 3,932.1 3,161.7 LIFO expense 187.5 112.5 25.0 337.5 75.0 Non-GAAP gross profit – FIFO$1,645.8 $1,413.4 $1,057.4 $4,269.6 $3,236.7 Gross profit margin – LIFO 27.9% 28.1% 28.3% 28.3% 29.2% Settlement charges (% of sales) 0.1% – – 0.1% – Restructuring charges (% of sales) – – – – 0.1% Non-GAAP gross profit margin 28.0% 28.1% 28.3% 28.4% 29.3% LIFO expense (% of sales) 3.6% 2.4% 0.6% 2.4% 0.7% Non-GAAP gross profit margin – FIFO 31.6% 30.5% 29.0% 30.8% 30.0% Certain percentages may not calculate due to rounding. September 30,
June 30,
September 30,
2026 2026 2025 Total debt$1,645.0 $1,670.0 $1,389.1 Less: unamortized discounts and costs (5.7) (6.1) (7.3) Carrying amount of debt 1,639.3 1,663.9 1,381.8 Less: cash and cash equivalents (246.0) (235.4) (261.2) Net debt 1,393.3 1,428.5 1,120.6 Total Reliance stockholders’ equity 7,723.7 7,401.5 7,305.3 Total capital$9,117.0 $8,830.0 $8,425.9 Net debt / total capital 15.3% 16.2% 13.3% Twelve Months Ended
September 30,
June 30,
September 30,
2026 2026 2025 Net income$1,109.5 $896.1 $730.7 Depreciation and amortization 278.1 278.5 279.5 Impairment 11.9 9.9 11.7 Interest expense 67.5 63.5 50.2 Income taxes 356.5 285.7 217.2 EBITDA$1,823.5 $1,533.7 $1,289.3 Net debt / EBITDA 0.8x 0.9x 0.9x Total debt / EBITDA 0.9x 1.1x 1.1x Three Months Ended Nine Months Ended September 30,
June 30,
September 30,
September 30,
September 30,
2026 2026 2025 2026 2025 Cash provided by operations$212.0 $162.2 $261.8 $525.6 $555.3 Less: capital expenditures (79.0) (93.4) (81.2) (236.6) (255.7) Free cash flow$133.0 $68.8 $180.6 $289.0 $299.6 Reliance presents certain non‑GAAP measures, including non‑GAAP gross profit, pretax income, net income and earnings per share, to provide meaningful period‑to‑period comparisons of its operating performance. These non‑GAAP measures reflect adjustments for certain items, including impairment and restructuring charges related to the closure or reorganization of certain locations, non-recurring settlement charges, including the resolution of certain customs duty matters, non-recurring debt financing expenses related to a term loan agreement, and gains on the sale of non‑core property, plant and equipment, which can reduce the comparability of GAAP results across periods. Reliance uses first‑in, first‑out (“FIFO”) gross profit, FIFO gross profit margin, and other FIFO‑based non-GAAP performance measures to assess its ongoing operating performance and provide a basis for comparison with competitors that do not use the last‑in, first‑out (“LIFO”) inventory accounting method. See footnote 1 for additional information regarding the Company’s gross profit and gross profit margin. In addition, Reliance presents net debt‑to‑EBITDA and total debt‑to‑EBITDA as measures of leverage used by management to monitor debt levels relative to operating performance, for which EBITDA is used as a proxy. Free cash flow is presented as a measure of cash generated by operations that may be used to repay scheduled debt maturities, fund additional growth initiatives, or be returned to stockholders.
Footnotes 1 Gross profit (calculated as net sales less cost of sales) and gross profit margin (calculated as gross profit divided by net sales) are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of Reliance’s orders are basic distribution with no processing services performed. For the remainder of its sales orders, Reliance performs “first-stage” processing, which is generally not labor intensive as it is simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, Reliance’s cost of sales is substantially comprised of the cost of the material it sells. Reliance uses gross profit and gross profit margin, as shown, as measures of operating performance. Gross profit and gross profit margin are important operating and financial measures, as their fluctuations can have a significant impact on Reliance’s earnings. Gross profit and gross profit margin, as presented, are not necessarily comparable with similarly titled measures for other companies.2 See accompanying Non-GAAP Reconciliation.
Analytici očekávají, že Alexandria Real Estate Equities vykáže čtvrtletní zisk 1,52 USD na akcii a tržby ve výši 644,23 milionu USD, což představuje meziroční pokles o 31,5 %, respektive o 14,3 %.
Wall Street analysts forecast that Alexandria Real Estate Equities (ARE - Free Report) will report quarterly earnings of $1.52 per share in its upcoming release, pointing to a year-over-year decline of 31.5%. It is anticipated that revenues will amount to $644.23 million, exhibiting a decrease of 14.3% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 1.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Alexandria Real Estate Equities metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Revenues- Other income' should arrive at $15.70 million. The estimate indicates a year-over-year change of -2.5%.
The consensus among analysts is that 'Revenues- Rental' will reach $633.86 million. The estimate points to a change of -13.9% from the year-ago quarter.
The average prediction of analysts places 'Occupancy - North America, excluding properties held for sale - Operating and Redevelopment' at 86.1%. Compared to the present estimate, the company reported 85.8% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Depreciation and amortization' of $306.10 million.
View all Key Company Metrics for Alexandria Real Estate Equities here>>>
Shares of Alexandria Real Estate Equities have experienced a change of -20.8% in the past month compared to the +1% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ARE is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In its upcoming report, Nucor (NUE - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $5.71 per share, reflecting an increase of 117.1% compared to the same period last year. Revenues are forecasted to be $10.53 billion, representing a year-over-year increase of 23.6%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 9.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Nucor metrics that are commonly tracked and forecasted by Wall Street analysts.
According to the collective judgment of analysts, 'Net sales to external customers- Steel products' should come in at $3.20 billion. The estimate suggests a change of +14.8% year over year.
The combined assessment of analysts suggests that 'Net sales to external customers- Steel mills' will likely reach $6.89 billion. The estimate suggests a change of +33.8% year over year.
Based on the collective assessment of analysts, 'Net sales to external customers- Raw materials' should arrive at $719.18 million. The estimate indicates a change of +24.4% from the prior-year quarter.
Analysts predict that the 'Net sales to external customers- Structural' will reach $862.01 million. The estimate suggests a change of +31% year over year.
It is projected by analysts that the 'Steel Products Segment - External Average Sales Price per Ton' will reach 2407 dollars per tonne. Compared to the current estimate, the company reported 2358 dollars per tonne in the same quarter of the previous year.
Analysts forecast 'Average sales price per ton (Steel) - Total Steel' to reach 1209 dollars per tonne. Compared to the current estimate, the company reported 1038 dollars per tonne in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Steel Products Segment - Sales Tons to External Customers' of 1330 thousands of tons. The estimate compares to the year-ago value of 1183 thousands of tons.
Analysts expect 'Sales Tons to outside customer (Steel) - Total Steel' to come in at 5672 thousands of tons. The estimate compares to the year-ago value of 4976 thousands of tons.
The consensus among analysts is that 'Sales Tons to outside customer (Steel) - Sheet' will reach 2739 thousands of tons. Compared to the present estimate, the company reported 2440 thousands of tons in the same quarter last year.
The average prediction of analysts places 'Sales Tons to outside customer (Steel) - Bars' at 1739 thousands of tons. The estimate compares to the year-ago value of 1515 thousands of tons.
Analysts' assessment points toward 'Sales Tons to outside customer (Steel) - Plate' reaching 659 thousands of tons. Compared to the current estimate, the company reported 549 thousands of tons in the same quarter of the previous year.
The consensus estimate for 'Average sales price per ton (Steel) - Sheet' stands at 1182 dollars per tonne. Compared to the current estimate, the company reported 982 dollars per tonne in the same quarter of the previous year.
View all Key Company Metrics for Nucor here>>>
Shares of Nucor have experienced a change of +6.5% in the past month compared to the +1% move of the Zacks S&P 500 composite. With a Zacks Rank #1 (Strong Buy), NUE is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Analytici očekávají, že Public Storage ve 3. čtvrtletí vykáže zisk na akcii ve výši 4,27 USD, což představuje meziroční pokles o 0,9 %, při tržbách 1,27 miliardy USD (+3,4 %).
The upcoming report from Public Storage (PSA - Free Report) is expected to reveal quarterly earnings of $4.27 per share, indicating a decline of 0.9% compared to the year-ago period. Analysts forecast revenues of $1.27 billion, representing an increase of 3.4% year over year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Public Storage metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenues- Ancillary operations' will likely reach $92.72 million. The estimate indicates a year-over-year change of +8.8%.
The consensus estimate for 'Revenues- Self-storage facilities' stands at $1.16 billion. The estimate indicates a year-over-year change of +1.5%.
The consensus among analysts is that 'Square foot occupancy' will reach 92.4%. Compared to the current estimate, the company reported 90.7% in the same quarter of the previous year.
Analysts expect 'Depreciation and amortization' to come in at $374.07 million.
View all Key Company Metrics for Public Storage here>>>
Over the past month, Public Storage shares have recorded returns of +4.2% versus the Zacks S&P 500 composite's +1% change. Based on its Zacks Rank #3 (Hold), PSA will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Will host a Capital Markets Day in New York City on March 2, 2027
, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) today reported third quarter 2026 financial results, reflecting strong demand for the Southwest product and continued momentum across the business.
"Customers are responding to the enhanced Southwest offering, and it shows in our results. Demand remained strong as we lapped last year's bag fee and other commercial initiatives, reinforcing our belief that the earnings power we've built is durable, even with significantly higher fuel costs.
"With the transformation complete, our efforts have shifted to optimizing the business and delivering the next set of Customer Experience enhancements, both focused on unlocking the next phase of value creation. Robust demand has continued in the fourth quarter, and we are seeing encouraging progress across our product and loyalty initiatives. We remain confident in our ability to further strengthen earnings, improve returns, and expand margins over time.
"We look forward to sharing our multi-year financial framework, the targets we are managing toward, and our path to achieving them at our Capital Markets Day in New York City on March 2, 2027," said Bob Jordan, Southwest Airlines President & Chief Executive Officer.
Highlights:
Net income of $270 million, or $0.55 diluted EPS, adjusted net income¹ of $328 million, or $0.66 adjusted EPS¹ Operating revenues of $8.4 billion, up 21.2%, a third quarter Company record Unit revenues increased 21.6%, exceeding prior guidance, achieving an all-time record Operating margin of 4.5%, up 4.0 points year-over-year; adjusted operating margin¹ of 5.4%, up 4.8 points year-over-year despite an $821 million increase in nominal fuel costs Returned $176 million to Shareholders through dividends Record third quarter passenger revenue and the highest passenger yield in the Company's history Managed business revenue reached a third quarter record, with 20 of the 50 all-time top managed business booking days occurring during the quarter Announced enhancements to the Rapid Rewards® program, including a new Platinum tier, a faster path to status through card spend, new Milestone Rewards, and new loyalty redemption partners Announced plans to launch the Southwest Icon Lounge™ network, the Company's first airport lounges, with the first guests expected in 2027 Became the first U.S. airline to make flight shopping available through ChatGPT Enhanced Southwest Business with the introduction of Business Priority and NDC connectivity, making it easier for corporate Customers to access and book Southwest products and services Welcomed TAP Air Portugal and LOT Polish Airlines as Southwest's tenth and eleventh airline partners Continued installation of Starlink ultra-fast WiFi across all aircraft, with fleet-wide installation expected to be complete in fall 2027 Guidance and Outlook:
The following tables provide guidance for fourth quarter and full-year 2026. The Company's guidance is based on the forward fuel curve as of October 15, 2026 and assumes the current fare environment and demand trends remain broadly intact.
4Q 2026 Forecast
Adjusted EPS1,2
$0.55 to $0.80
ASMs (a), year-over-year
3% to 4%
RASM (b), year-over-year
19% to 21%
CASM-X (c), year-over-year1,2
4.0% to 4.5%
2026 Forecast
Adjusted EPS1,2
$2.60 to $2.85
(a) Available seat miles ("ASMs" or "capacity").
(b) Operating revenue per available seat mile ("RASM" or "unit revenues").
(c) Operating expenses per available seat mile, excluding aircraft fuel and related taxes expense, special items, and profit sharing ("CASM-X").
Revenue:
Record third quarter 2026 operating revenues of $8.4 billion, up 21.2 percent year-over-year Third quarter 2026 RASM reached an all-time record, increasing 21.6 percent year-over-year, on capacity down 0.4 percent Fourth quarter 2026 RASM is expected to increase between 19% and 21% year-over-year Costs:
Third quarter 2026 operating expenses increased 16.3 percent year-over-year to $8.0 billion; operating expenses excluding special items¹ increased 15.4 percent year-over-year to $8.0 billion Third quarter 2026 operating expenses, excluding aircraft fuel and related taxes expense, special items, and profit sharing1, increased 3.4 percent year-over-year Third quarter 2026 CASM-X1 increased 3.8 percent year-over-year Fourth quarter 2026 CASM-X1,2 is expected to increase between 4.0% and 4.5% year-over-year, which includes an expected 1.0 point headwind from the removal of six seats from the Boeing 737-700 fleet to enable extra legroom seating Fuel:
Third quarter 2026 fuel cost was $3.92 per gallon, above prior assumptions of $3.70 to $3.75 per gallon. Fuel expense increased by $821 million compared to the third quarter of 2025 and represented a $1.08 headwind to adjusted EPS Fourth quarter 2026 fuel cost per gallon is assumed to be approximately $4.553 based on the forward curve as of October 15, 2026 Capacity, Fleet, and Capital Spending:
Third quarter 2026 capacity decreased 0.4 percent year-over-year Received 20 Boeing 737-8 aircraft and retired 20 aircraft in third quarter 2026, ending the quarter with 803 aircraft (retirements included the sale of three Boeing 737-800 aircraft and the retirement of 17 Boeing 737-700 aircraft) Third quarter 2026 gain on sale of $214 million, including $96 million primarily from retiring aircraft and engine sales and $118 million from sale-leaseback transactions Third quarter 2026 gross capital expenditures were $1.0 billion, driven primarily by aircraft-related capital spending, as well as technology, facilities, and operational investments Expect a total of 67 Boeing 737-8 and 737-7 aircraft deliveries and plan to retire approximately 60 aircraft in 2026 Entered 2026 with a disciplined capacity plan and now expect full-year growth of approximately 1.2%, versus last updated guidance of approximately 1.5% Expect 2026 net capital spending4 between $2.5 billion and $2.75 billion Liquidity and Capital Deployment:
Ended third quarter 2026 with $5.6 billion in liquidity, comprised of $3.6 billion in cash and cash equivalents and a revolving credit line of $2.0 billion Ended the quarter with gross leverage1 of 1.9x Have unencumbered aircraft and other related assets with a net book value of approximately $15.8 billion Distributed $176 million in dividends during third quarter 2026 $450 million remains outstanding under the Company's $2.0 billion share repurchase authorization Conference Call:
Southwest will discuss its third quarter 2026 results on a conference call at 10:00 a.m. Eastern Time on October 22, 2026. To listen to a live broadcast of the conference call, please go to https://www.investors.southwest.com.
Footnotes
1See Note Regarding Use of Non-GAAP Financial Measures for additional information on special items. In addition, information regarding special items is included in the accompanying table Reconciliation of Reported Amounts to Non-GAAP Items (also referred to as "excluding special items").
2Projections do not reflect the potential impact of special items and/or Aircraft fuel and related taxes expense, special items, and profit sharing because the Company cannot reliably predict or estimate those items or expenses or their impact to its financial statements in future periods, particularly given the unusual or infrequent nature of special items and especially considering the significant volatility of the Aircraft fuel and related taxes expense line item. Accordingly, the Company believes a reconciliation of non-GAAP financial measures to the equivalent GAAP financial measures for these projected results is not meaningful or available without unreasonable effort.
3Based on market prices as of October 15, 2026. Fuel cost per gallon includes fuel taxes and fuel hedging net premium expense of $0.05 per gallon related to terminated fuel derivative contracts.
4Net capital expenditures include the impact of aircraft sales and sale-leaseback transactions.
Throughout this press release, certain columns and rows may not calculate precisely to the reported totals due to the use of rounded numbers.
Cautionary Statement Regarding Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company's financial outlook, expectations, plans, targets, and projected results of operations, including with respect to earnings power and margin expansion; (ii) the Company's initiatives, strategic priorities, focus areas, core strengths, goals, and opportunities, including with respect to product offering enhancements; (iii) the Company's expectations with respect to demand, competitive positioning, and Customer response to its product offering; (iv) the Company's capacity plans and expectations; (v) the Company's expectations with respect to fuel costs and fuel efficiency; (vi) the Company's fleet plans and expectations, including with respect to the Company's fleet order book, fleet upgrades and modernization, fleet transactions, fleet deliveries and retirements; (vii) the Company's plans, estimates, and assumptions related to capital spending; and (viii) the Company's plans, expectations, and targets with respect to its investment-grade balance sheet, liquidity, leverage, and share repurchases and other Shareholder returns. These forward-looking statements are based on the Company's current estimates, intentions, beliefs, expectations, goals, strategies, and projections for the future and are not guarantees of future performance. Forward-looking statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the impact of geopolitical conflicts, fears or actual outbreaks of diseases, extreme or severe weather and natural disasters, actions of competitors (including, without limitation, pricing, scheduling, capacity, and network decisions, and consolidation and alliance activities), governmental actions, consumer perception, consumer uncertainties with respect to trade policies, tariffs, or government shutdowns, economic conditions, fears or actual acts of terrorism or war, sociodemographic trends, and other factors beyond the Company's control, on consumer behavior and the Company's results of operations and business decisions, plans, strategies, and results; (ii) the Company's ability to timely and effectively implement, transition, operate, maintain, and protect the technology systems, cybersecurity measures, artificial intelligence and other emerging technology capabilities, and infrastructure necessary to support its operations and initiatives; (iii) the Company's ability to effectively execute and evolve its strategic plans, initiatives, product offerings, and policies, including related consumer behavior and response; (iv) the impact of fuel price changes, fuel price volatility, and fuel availability on the Company's business plans and results of operations; (v) the impact of the Federal Aviation Administration and other governmental regulations and actions, including with respect to government shutdowns and Air Traffic Control staffing shortages and inefficiencies, as well as the Company's ability to obtain any required governmental approvals, on the Company's business plans, results, and operations; (vi) the Company's dependence on The Boeing Company ("Boeing") and Boeing suppliers with respect to the Company's aircraft deliveries, fleet and capacity plans, operations, maintenance, strategies, and goals; (vii) the Company's dependence on other third parties, including with respect to technology, revenue management, distribution channels, operational reliability, fuel supply, maintenance, and the impact on the Company's operations and results of operations of any third-party delays or nonperformance; (viii) the impact of labor matters on the Company's business decisions, plans, strategies, and results; (ix) the Company's ability to obtain and maintain adequate infrastructure and equipment to support its operations and initiatives; (x) the Company's dependence on its workforce, including its ability to employ and retain sufficient numbers of qualified Employees with appropriate skills and expertise to effectively and efficiently maintain its operations and execute the Company's plans; (xi) the cost and effects of the actions of activist shareholders; and (xii) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Southwest Airlines Co.
Condensed Consolidated Statement of Income
(in millions, except per share amounts)
(unaudited)
Three months ended
Nine months ended
September 30,
September 30,
2026
2025
Percent
Change
2026
2025
Percent
Change
OPERATING REVENUES:
Passenger
$ 7,754
$ 6,313
22.8
$ 22,091
$ 18,751
17.8
Freight
48
42
14.3
141
127
11.0
Other
621
594
4.5
1,872
1,743
7.4
Total operating revenues
8,422
6,949
21.2
24,104
20,621
16.9
OPERATING EXPENSES:
Salaries, wages, and benefits
3,542
3,219
10.0
10,338
9,583
7.9
Aircraft fuel and related taxes
2,152
1,331
61.7
5,723
3,907
46.5
Maintenance materials and repairs
303
299
1.3
855
921
(7.2)
Landing fees and airport rentals
623
548
13.7
1,831
1,638
11.8
Depreciation and amortization
398
394
1.0
1,198
1,189
0.8
Other operating expenses
1,026
1,123
(8.6)
3,166
3,346
(5.4)
Total operating expenses
8,043
6,914
16.3
23,110
20,584
12.3
OPERATING INCOME
379
35
n.m.
994
37
n.m.
NON-OPERATING EXPENSES (INCOME):
Interest expense
70
35
100.0
188
120
56.7
Capitalized interest
(13)
(13)
—
(38)
(38)
—
Interest income
(33)
(34)
(2.9)
(90)
(172)
(47.7)
Other gains, net
(1)
(21)
(95.2)
(13)
(28)
(53.6)
Total non-operating expenses (income)
24
(33)
n.m.
47
(118)
n.m.
INCOME BEFORE INCOME TAXES
355
68
n.m.
946
155
n.m.
PROVISION FOR INCOME TAXES
85
14
n.m.
216
37
n.m.
NET INCOME
$ 270
$ 54
n.m.
$ 730
$ 118
n.m.
NET INCOME PER SHARE:
Basic
$ 0.55
$ 0.10
n.m.
$ 1.48
$ 0.21
n.m.
Diluted
$ 0.55
$ 0.10
n.m.
$ 1.47
$ 0.21
n.m.
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
489
523
(6.5)
492
548
(10.2)
Diluted
494
526
(6.1)
497
551
(9.8)
Southwest Airlines Co.
Reconciliation of Reported Amounts to Non-GAAP Financial Measures (excluding special items)
(See Note Regarding Use of Non-GAAP Financial Measures)
(in millions, except per share and per ASM amounts) (unaudited)
Three months ended
Nine months ended
September 30,
Percent
September 30,
Percent
2026
2025
Change
2026
2025
Change
Operating revenues, as reported
$ 8,422
$ 6,949
$ 24,104
$ 20,621
(a)
Add: Breakage revenue adjustment
—
—
285
—
Operating revenues, excluding special items
$ 8,422
$ 6,949
21.2
$ 24,389
$ 20,621
18.3
Aircraft fuel and related taxes, unhedged
$ 2,123
$ 1,295
$ 5,637
$ 3,797
(b)
Add: Premium cost of fuel contracts designated as hedges
29
36
86
110
Aircraft fuel and related taxes, as reported
$ 2,152
$ 1,331
61.7
$ 5,723
$ 3,907
46.5
Total operating expenses, as reported
$ 8,043
$ 6,914
$ 23,110
$ 20,584
Deduct: Impairment of long-lived assets
(30)
—
(30)
(8)
Deduct: Litigation accruals
(13)
—
(13)
(19)
Deduct: Transformation costs
—
(7)
—
(33)
(c)
Deduct: Severance and related costs
(30)
—
(45)
(62)
Total operating expenses, excluding special items
$ 7,970
$ 6,907
15.4
$ 23,022
$ 20,462
12.5
Deduct: Aircraft fuel and related taxes expense, as reported
(2,152)
(1,331)
(5,723)
(3,907)
Operating expenses, excluding Aircraft fuel and related
taxes expense and special items
$ 5,818
$ 5,576
4.3
$ 17,299
$ 16,555
4.5
Deduct: Profit-sharing expense
(62)
(11)
(165)
(26)
Operating expenses, excluding Aircraft fuel and related
taxes expense, special items, and profit sharing
$ 5,756
$ 5,565
3.4
$ 17,134
$ 16,529
3.7
Operating income, as reported
$ 379
$ 35
$ 994
$ 37
(a)
Add: Breakage revenue adjustment
—
—
285
—
Add: Impairment of long-lived assets
30
—
30
8
Add: Litigation accruals
13
—
13
19
Add: Transformation costs
—
7
—
33
(c)
Add: Severance and related costs
30
—
45
62
Operating income, excluding special items
$ 452
$ 42
976.2
$ 1,367
$ 159
759.7
Total operating revenues, as reported
$ 8,422
$ 6,949
$ 24,104
$ 20,621
Operating margin, as reported
4.5 %
0.5 %
4.0 pts.
4.1 %
0.2 %
3.9 pts.
Add: Impact of special items
0.9 %
0.1 %
1.5 %
0.6 %
Operating margin, excluding special items
5.4 %
0.6 %
4.8 pts.
5.6 %
0.8 %
4.8 pts.
Income before income taxes, as reported
$ 355
$ 68
$ 946
$ 155
(a)
Add: Breakage revenue adjustment
—
—
285
—
Add: Litigation accruals
13
—
13
19
Add: Transformation costs
—
7
—
33
(c)
Add: Severance and related costs
30
—
45
62
Add: Impairment of long-lived assets
30
—
30
8
Income before income taxes, excluding special items
$ 428
$ 75
470.7
$ 1,320
$ 277
376.5
Provision for income taxes, as reported
$ 85
$ 14
$ 216
$ 37
(d)
Add: Net income tax impact of special items
16
3
85
29
Provision for income taxes, net, excluding special items
$ 101
$ 17
494.1
$ 301
$ 66
356.1
Net income, as reported
$ 270
$ 54
$ 730
$ 118
(a)
Add: Breakage revenue adjustment
—
—
285
—
Add: Litigation accruals
13
—
13
19
Add: Transformation costs
—
7
—
33
(c)
Add: Severance and related costs
30
—
45
62
Add: Impairment of long-lived assets
30
—
30
8
(d)
Deduct: Net income tax impact of special items
(16)
(3)
(85)
(29)
Net income, excluding special items
$ 328
$ 58
465.5
$ 1,019
$ 211
382.9
Total operating revenues, as reported
$ 8,422
$ 6,949
$ 24,104
$ 20,621
Net margin, as reported
3.2 %
0.8 %
2.4 pts.
3.0 %
0.6 %
2.4 pts.
Add: Impact of special items
0.9 %
0.1 %
1.5 %
0.6 %
(d)
Deduct: Net income tax impact of special items
(0.2) %
— %
(0.3) %
(0.1) %
Net margin, excluding special items
3.9 %
0.8 %
3.1 pts.
4.2 %
1.0 %
3.2 pts.
Net income per share, diluted, as reported
$ 0.55
$ 0.10
$ 1.47
$ 0.21
Add: Impact of special items
0.15
0.02
0.75
0.22
(d)
Deduct: Net income tax impact of special items
(0.04)
(0.01)
(0.17)
(0.05)
Net income per share, diluted, excluding special items
$ 0.66
$ 0.11
500.0
$ 2.05
$ 0.38
439.5
Operating revenues per ASM (cents), as reported
18.55 ¢
15.25 ¢
17.92 ¢
15.39 ¢
Add: Impact of special items
—
—
0.21
—
Operating revenues per ASM, excluding special items (cents)
18.55 ¢
15.25 ¢
21.6
18.13 ¢
15.39 ¢
17.8
Operating expenses per ASM (cents)
17.72 ¢
15.17 ¢
17.18 ¢
15.36 ¢
Deduct: Impact of special items
(0.16)
(0.02)
(0.07)
(0.09)
Deduct: Aircraft fuel and related taxes expense divided by ASMs
(4.74)
(2.92)
(4.25)
(2.91)
Deduct: Profit-sharing expense divided by ASMs
(0.14)
(0.02)
(0.12)
(0.02)
Operating expenses per ASM, excluding Aircraft fuel and related
taxes expense, special items, and profit sharing (cents)
12.68 ¢
12.21 ¢
3.8
12.74 ¢
12.34 ¢
3.2
(a) Represents a change in breakage revenue estimate related to non-expiring flight credits the Company issued to Passengers between July 2022 and December 2025. Due to higher-than-projected Customer redemptions of these non-expiring flight credits, along with updated projections of future redemptions, the Company has revised its estimates with regards to the remaining non-expiring flight credits that remain available for redemption.
(b) Includes amounts reclassified from Accumulated other comprehensive income associated with hedges previously terminated.
(c) Represents Employee severance and other related payments resulting from corporate workforce reductions.
(d) Tax amounts for each individual special item are calculated at the Company's effective rate for the applicable period and totaled in this line item.
Southwest Airlines Co.
Comparative Consolidated Operating Statistics
(unaudited)
Relevant comparative operating statistics for the three and nine months ended September 30, 2026 and 2025 are included below. The Company provides these operating
statistics because they are commonly used in the airline industry and, as such, allow readers to compare the Company's performance against its results for the prior year
period, as well as against the performance of the Company's peers.
Three months ended
Nine months ended
September 30,
Percent
September 30,
Percent
2026
2025
Change
2026
2025
Change
Revenue passengers carried (000s)
33,467
34,581
(3.2)
96,973
100,078
(3.1)
Enplaned passengers (000s)
43,310
43,806
(1.1)
125,105
125,330
(0.2)
Revenue passenger miles (RPMs) (in millions) (a)
36,214
36,362
(0.4)
104,711
103,875
0.8
Available seat miles (ASMs) (in millions) (b)
45,393
45,567
(0.4)
134,535
133,994
0.4
Load factor (c)
79.8 %
79.8 %
— pts.
77.8 %
77.5 %
0.3 pts.
Average length of passenger haul (miles)
1,082
1,051
2.9
1,080
1,038
4.0
Average aircraft stage length (miles)
776
784
(1.0)
779
781
(0.3)
Trips flown
357,374
356,952
0.1
1,055,484
1,056,790
(0.1)
Seats flown (000s) (d)
57,593
57,643
(0.1)
169,631
170,145
(0.3)
Seats per trip (e)
161.2
161.5
(0.2)
160.7
161.0
(0.2)
Average passenger fare
$ 231.69
$ 182.56
26.9
$ 227.81
$ 187.36
21.6
Passenger revenue yield per RPM (cents) (f)
21.41
17.36
23.3
21.10
18.05
16.9
RASM (cents) (g)
18.55
15.25
21.6
17.92
15.39
16.4
RASM, excluding special items (cents)
18.55
15.25
21.6
18.13
15.39
17.8
PRASM (cents) (h)
17.08
13.85
23.3
16.42
13.99
17.4
CASM (cents) (i)
17.72
15.17
16.8
17.18
15.36
11.8
CASM, excluding fuel (cents)
12.98
12.25
6.0
12.92
12.45
3.8
CASM, excluding special items (cents)
17.56
15.16
15.8
17.11
15.27
12.0
CASM, excluding fuel and special items (cents)
12.82
12.24
4.7
12.86
12.36
4.0
CASM, excluding fuel, special items, and profit sharing (cents)
12.68
12.21
3.8
12.74
12.34
3.2
Fuel costs per gallon, including fuel tax (unhedged)
$ 3.87
$ 2.33
66.1
$ 3.50
$ 2.33
50.2
Fuel costs per gallon, including fuel tax
$ 3.92
$ 2.40
63.3
$ 3.56
$ 2.40
48.3
Fuel consumed, in gallons (millions)
548
554
(1.1)
1,607
1,624
(1.0)
Active fulltime equivalent Employees
73,092
72,223
1.2
73,092
72,223
1.2
Aircraft at end of period
803
802
0.1
803
802
0.1
(a) A revenue passenger mile is one paying passenger flown one mile. Also referred to as "traffic," which is a measure of demand for a given period.
(b) An available seat mile is one seat (empty or full) flown one mile. Also referred to as "capacity," which is a measure of supply or the space available to carry passengers in a given period.
(c) Revenue passenger miles divided by available seat miles.
(d) Seats flown is calculated using total number of seats available by aircraft type multiplied by the total trips flown by the same aircraft type during a particular period.
(e) Seats per trip is calculated by dividing seats flown by trips flown.
(f) Calculated as passenger revenue divided by revenue passenger miles. Also referred to as "yield," this is the average cost paid by a paying passenger to fly one mile, which is a measure of revenue production and fares.
(g) RASM (unit revenue) - Operating revenue yield per ASM, calculated as operating revenue divided by available seat miles. Also referred to as "operating unit revenues," this is a measure of operating revenue production based on the total available seat miles flown during a particular period.
(h) PRASM (Passenger unit revenue) - Passenger revenue yield per ASM, calculated as passenger revenue divided by available seat miles. Also referred to as "passenger unit revenues," this is a measure of passenger revenue production based on the total available seat miles flown during a particular period.
(i) CASM (unit costs) - Operating expenses per ASM, calculated as operating expenses divided by available seat miles. Also referred to as "unit costs" or "cost per available seat mile," this is the average cost to fly an aircraft seat (empty or full) one mile, which is a measure of cost efficiency.
Southwest Airlines Co.
Condensed Consolidated Balance Sheet
(in millions)
(unaudited)
September 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 3,624
$ 3,231
Accounts and other receivables
1,313
1,149
Inventories of parts and supplies, at cost
997
775
Prepaid expenses and other current assets
572
490
Total current assets
6,506
5,645
Property and equipment, at cost:
Flight equipment
26,144
26,293
Ground property and equipment
9,686
9,163
Deposits on flight equipment purchase contracts
723
401
Assets constructed for others
88
88
36,642
35,945
Less allowance for depreciation and amortization
15,654
15,700
20,988
20,245
Goodwill
970
970
Operating lease right-of-use assets
994
1,089
Other assets
1,081
1,112
$ 30,539
$ 29,061
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 1,847
$ 1,991
Accrued liabilities
2,382
2,349
Current operating lease liabilities
278
312
Air traffic liability
7,078
5,945
Current maturities of long-term debt
2,153
324
Total current liabilities
13,738
10,921
Long-term debt less current maturities
3,734
4,577
Air traffic liability - noncurrent
1,199
1,219
Deferred income taxes
2,513
2,289
Noncurrent operating lease liabilities
706
768
Other noncurrent liabilities
1,320
1,306
Stockholders' equity:
Common stock
888
888
Capital in excess of par value
4,326
4,322
Retained earnings
16,853
16,388
Accumulated other comprehensive income (loss)
51
(24)
Treasury stock, at cost
(14,790)
(13,593)
Total stockholders' equity
7,329
7,981
$ 30,539
$ 29,061
Southwest Airlines Co.
Condensed Consolidated Statement of Cash Flows
(in millions) (unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$ 270
$ 54
$ 730
$ 118
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
398
394
1,198
1,189
Impairment of long-lived assets
30
—
30
8
Deferred income taxes
83
14
201
37
Gain on sale of property and equipment
(96)
(13)
(272)
(28)
Gain on sale-leaseback transactions
(118)
—
(118)
(3)
Changes in certain assets and liabilities:
Accounts and other receivables
(95)
(83)
(151)
64
Other assets
(41)
3
(156)
359
Accounts payable and accrued liabilities
41
11
(14)
(209)
Air traffic liability
92
(172)
1,113
(117)
Other liabilities
(86)
16
(216)
(19)
Cash collateral provided to derivative counterparties
—
—
—
(22)
Other, net
33
63
115
170
Net cash provided by operating activities
513
287
2,460
1,547
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(1,006)
(735)
(2,454)
(1,922)
Proceeds from sale of property and equipment
285
57
735
108
Proceeds from sale-leaseback transactions
212
—
212
23
Purchases of short-term investments
—
(100)
—
(470)
Proceeds from sales of short-term and other investments
—
350
—
1,577
Other, net
—
—
(6)
(3)
Net cash used in investing activities
(509)
(428)
(1,513)
(687)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt
—
—
1,500
—
Proceeds from Employee stock plans
14
14
46
46
Repurchase of common stock
—
(250)
(1,250)
(2,500)
Payments of long-term debt and finance lease obligations
(5)
(6)
(442)
(2,603)
Payments of cash dividends
(176)
(189)
(357)
(399)
Other, net
(4)
(1)
(51)
(11)
Net cash used in financing activities
(171)
(432)
(554)
(5,467)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(167)
(573)
393
(4,607)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
3,791
3,475
3,231
7,509
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 3,624
$ 2,902
$ 3,624
$ 2,902
NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES
The Company's unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP. These GAAP financial statements include (i) unrealized noncash reclassifications, as a result of accounting requirements and elections previously made under accounting pronouncements relating to derivative instruments and hedging and (ii) other charges and benefits the Company considers unusual and/or infrequent in nature and thus may make comparisons to its prior or future performance difficult.
Accordingly, the Company also provides financial information in this filing that was not prepared in accordance with GAAP and should not be considered as a substitute for the information prepared in accordance with GAAP. The Company provides supplemental non-GAAP financial information (also referred to as "excluding special items"). Management believes special items can distort the trends associated with the Company's ongoing performance. Therefore, management utilizes non-GAAP financial measures to evaluate the Company's financial performance, anticipate future operating results, and assess trends without the impact of items that can vary significantly from period to period. The following measures are often provided, excluding special items, and are utilized by the Company's management, analysts, and investors to enhance comparability of year-over-year results, as well as to industry trends: Operating revenues, non-GAAP; Total operating expenses, non-GAAP; Operating expenses, non-GAAP excluding Aircraft fuel and related taxes expense; Operating expenses, non-GAAP excluding Aircraft fuel and related taxes expense and profit sharing; Operating income, non-GAAP; Adjusted Operating income, non-GAAP; Income before income taxes, non-GAAP; Provision for income taxes, net, non-GAAP; Net income, non-GAAP; Net income per share, diluted, non-GAAP; Operating revenues per ASM, non-GAAP (cents); Operating expenses per ASM, non-GAAP, excluding Aircraft fuel and related taxes expense and profit sharing (cents); Return on invested capital, non-GAAP; adjusted operating margin; adjusted net margin; and gross leverage.
For the periods presented, special items include:
Charges associated with tentative and/or actual litigation settlements; Expenses associated with professional advisory fees related to the Company's implementation of its comprehensive transformational plan; Charges associated with Employee severance and other related payments resulting from corporate workforce reductions; Reversal of breakage revenue recorded in prior years related to a portion of non-expiring flight credits issued to Customers that have either been redeemed or are expected to be redeemed in future periods; Non-cash impairment charges to remove certain assets no longer in use that are not related to the direct operations of the Company from the unaudited Condensed Consolidated Balance Sheet; Expenses associated with incremental professional advisory fees related to activist investor activities, which were not budgeted by the Company or associated with the ongoing operation of the airline; Incremental expense associated with a voluntary separation program that allowed eligible Employees the opportunity to voluntarily separate from the Company in exchange for severance, medical/dental coverage for a specified period of time, and travel privileges based on years of service; and A credit received from the Department of Transportation ("DOT") regarding a settlement reached for the Company's December 2022 operational disruption in light of the Company significantly improving its on-time performance and completion factor through the Company's investment in its Network Operations Control. The Company has also provided its calculation of return on invested capital, which is a measure of financial performance used by management to evaluate its investment returns on capital. Return on invested capital is not a substitute for financial results as reported in accordance with GAAP and should not be utilized in place of such GAAP results. Return on invested capital is not a measure defined by GAAP. It is calculated by the Company, in part, using non-GAAP financial measures, which include charges or benefits that are deemed "special items." As noted above, the Company believes "special items" make it difficult to compare to prior periods, anticipated future periods, or industry trends since these items cannot be reliably predicted or estimated. The Company believes non-GAAP return on invested capital is a meaningful measure because it quantifies the Company's effectiveness in generating returns relative to the capital it has invested in its business. Although return on invested capital is commonly used as a measure of capital efficiency, definitions of return on invested capital differ; therefore, the Company is providing an explanation of its calculation for non-GAAP return on invested capital in the accompanying reconciliation in order to allow investors to compare and contrast its calculation to the calculations provided by other companies.
Southwest Airlines Co.
Non-GAAP Return on Invested Capital (ROIC)
(in millions)
(unaudited)
Twelve months ended
Twelve months ended
September 30, 2026
September 30, 2025
Operating income, as reported
$ 1,384
$ 315
Breakage revenue adjustment
285
116
Severance and related costs
45
62
Voluntary Employee programs
—
5
Net impact from fuel contracts
—
(25)
Professional advisory fees
—
18
Transformation costs
—
37
DOT settlement
(11)
—
Litigation accruals
13
19
Impairments
30
8
Operating income, non-GAAP
$ 1,747
$ 555
Net adjustment for aircraft leases (a)
214
201
Adjusted operating income, non-GAAP (A)
$ 1,961
$ 756
Non-GAAP tax rate (B)
22.7 %
(d)
22.4 %
(e)
Net operating profit after-tax, NOPAT (A* (1-B) = C)
$ 1,516
$ 587
Debt, including finance leases (b)
$ 5,244
$ 5,921
Equity (b)
7,409
9,181
Net present value of aircraft operating leases (b)
814
977
Average invested capital
$ 13,467
$ 16,079
Equity adjustment for hedge accounting (c)
(8)
32
Adjusted average invested capital (D)
$ 13,459
$ 16,111
Non-GAAP ROIC, pre-tax (A/D)
14.6 %
4.7 %
Non-GAAP ROIC, after-tax (C/D)
11.3 %
3.6 %
(a) Net adjustment to reflect all aircraft in fleet as owned (i.e., the impact of eliminating aircraft rent expense and replacing with estimated depreciation expense for those same aircraft). The Company makes this adjustment to enhance comparability to other entities that have different capital structures by utilizing alternative financing decisions.
(b) Calculated as an average of the five most recent quarter end balances or remaining obligations. The Net present value of aircraft operating leases represents the assumption that all aircraft in the Company's fleet are owned, as it reflects the remaining contractual commitments discounted at the Company's estimated incremental borrowing rate as of the time each individual lease was signed.
(c) The Equity adjustment in the denominator adjusts for the cumulative impacts, in Accumulated other comprehensive income and Retained earnings, of gains and/or losses that will settle in future periods, including those associated with the Company's terminated fuel hedges. The prior period impact of these gains and/or losses is reflected in the Net impact from fuel contracts in the numerator.
(d) The GAAP twelve month rolling tax rate as of September 30, 2026, was 22.2 percent, and the Non-GAAP twelve month rolling tax rate was 22.7 percent. See Note Regarding Use of Non-GAAP Financial Measures for additional information.
(e) The GAAP twelve month rolling tax rate as of September 30, 2025, was 21.8 percent, and the Non-GAAP twelve month rolling tax rate was 22.4 percent. See Note Regarding Use of Non-GAAP Financial Measures for additional information.
The Company has also provided gross leverage, which is calculated as adjusted debt divided by trailing twelve month adjusted EBITDAR. Leverage, adjusted debt, and adjusted EBITDAR are non-GAAP measures of financial performance. Management believes these supplemental measures can provide a more accurate view of the Company's leverage and risk, since they consider the Company's debt and debt-like obligation profile. Leverage ratios are widely used by investors, analysts, and rating agencies in the valuation, comparison, rating, and investment recommendations of companies. Although adjusted debt, adjusted EBITDAR, and leverage ratios are commonly-used financial measures, definitions of each differ; therefore, the Company is providing an explanation of its calculations for non-GAAP adjusted debt and adjusted EBITDAR in the accompanying reconciliation below in order to allow investors to compare and contrast its calculations to the calculations provided by other companies.
Southwest Airlines Co.
Non-GAAP Gross Leverage
(in millions) (unaudited)
September 30, 2026
Current maturities of long-term debt, as reported
$ 2,153
Long-term debt less current maturities, as reported
3,734
Total debt, including finance leases (A)
5,887
Add: Current operating lease liabilities, as reported
278
Add: Noncurrent operating lease liabilities, as reported
706
Adjusted debt (B)
$ 6,871
Twelve Months Ended
September 30, 2026
Net income, as reported (C)
$ 1,053
Interest expense (income), net of capitalized interest, as reported
59
Income tax expense (benefit), as reported
300
Non-operating other (gains) losses, net, as reported
, /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 27, 2026 (the "September 2026 quarter").
Highlights for the September 2026 quarter were as follows:
Revenue of $8.22 billion.
U.S. GAAP gross margin as a percent of revenue of 52.3%, U.S. GAAP operating margin as a percent of revenue of 40.0%, and U.S. GAAP diluted EPS of $2.19.
Non-GAAP gross margin as a percent of revenue of 52.4%, non-GAAP operating margin as a percent of revenue of 40.2%, and non-GAAP diluted EPS of $2.20.
Key Financial Data for the Quarters Ended
September 27, 2026 and June 28, 2026
(in thousands, except per share data, percentages, and basis points)
U.S. GAAP
September 2026
June 2026
Change Q/Q
Revenue
$ 8,219,418
$ 6,722,238
+22 %
Gross margin
52.3 %
51.7 %
+ 60 bps
Operating margin
40.0 %
37.4 %
+ 260 bps
Diluted EPS
$ 2.19
$ 1.81
+ 21 %
Non-GAAP
September 2026
June 2026
Change Q/Q
Revenue
$ 8,219,418
$ 6,722,238
+22 %
Gross margin
52.4 %
52.0 %
+ 40 bps
Operating margin
40.2 %
38.4 %
+ 180 bps
Diluted EPS
$ 2.20
$ 1.82
+ 21 %
U.S. GAAP Financial Results
For the September 2026 quarter, revenue was $8.22 billion, gross margin was $4.30 billion, or 52.3% of revenue, operating expenses were $1.02 billion, operating margin was 40.0%, and net income was $2.75 billion, or $2.19 per diluted share on a U.S. GAAP basis. This compares to revenue of $6.72 billion, gross margin of $3.48 billion, or 51.7% of revenue, operating expenses of $965.3 million, operating margin of 37.4%, and net income of $2.28 billion, or $1.81 per diluted share, for the quarter ended June 28, 2026 (the "June 2026 quarter").
Non-GAAP Financial Results
For the September 2026 quarter, non-GAAP gross margin was $4.31 billion, or 52.4% of revenue, non-GAAP operating expenses were $1.00 billion, non-GAAP operating margin was 40.2%, and non-GAAP net income was $2.77 billion, or $2.20 per diluted share. This compares to non-GAAP gross margin of $3.50 billion, or 52.0% of revenue, non-GAAP operating expenses of $916.4 million, non-GAAP operating margin of 38.4%, and non-GAAP net income of $2.28 billion, or $1.82 per diluted share, for the June 2026 quarter.
"With AI driving higher semiconductor demand and greater device complexity, our focus on operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter," said Tim Archer, Lam Research's President and Chief Executive Officer. "Our strategic investments in technology inflections and manufacturing capacity are paying off, strengthening our ability to outgrow the wafer fabrication equipment market as the industry expands."
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances increased to $7.45 billion at the end of the September 2026 quarter compared to $5.60 billion at the end of the June 2026 quarter. The increase was primarily the result of cash generated from operating activities during the quarter partially offset by cash deployed for capital return activities and capital expenditures.
Deferred revenue at the end of the September 2026 quarter increased to $2.66 billion compared to $2.43 billion as of the end of the June 2026 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $468.3 million as of September 27, 2026 and $490.2 million as of June 28, 2026.
Revenue
The geographic distribution of revenue during the September 2026 quarter is shown in the following table:
Region
Revenue
China
35 %
Korea
20 %
Taiwan
18 %
Japan
9 %
United States
8 %
Southeast Asia
6 %
Europe
4 %
The following table presents revenue disaggregated between systems and customer support-related revenue:
Three Months Ended
September 27,
2026
June 28,
2026
September 28,
2025
(in thousands)
Systems revenue
$ 5,732,907
$ 4,249,848
$ 3,547,565
Customer support-related revenue and other
2,486,511
2,472,390
1,776,608
$ 8,219,418
$ 6,722,238
$ 5,324,173
Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets.
Customer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ending December 27, 2026, Lam is providing the following guidance:
U.S. GAAP
Reconciling Items
Non-GAAP
Revenue
$8.60 Billion
+/-
$400 Million
—
$8.60 Billion
+/-
$400 Million
Gross margin
52.5 %
+/-
1 %
$ 2.7
Million
52.5 %
+/-
1 %
Operating margin
40.5 %
+/-
1 %
$ 3.0
Million
40.5 %
+/-
1 %
Net income per diluted share
$2.33
+/-
$0.15
$ 3.3
Million
$2.33
+/-
$0.15
Diluted share count
1.253 Billion
—
1.253 Billion
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:
Gross margin - amortization related to intangible assets acquired through certain business combinations, $2.7 million.
Operating margin - amortization related to intangible assets acquired through certain business combinations, $3.0 million.
Net income per diluted share - amortization related to intangible assets acquired through certain business combinations, $3.0 million; amortization of note discounts, $0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company's non-GAAP results for both the September 2026 and June 2026 quarters exclude amortization related to intangible assets acquired through certain business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. The September 2026 quarter also excludes the net income tax effect of a change in tax law, and the June 2026 quarter excludes workforce optimization charges and the related income tax effect.
Management uses non-GAAP gross margin, operating expense, operating income, operating margin, net income, and net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company's website at https://investor.lamresearch.com.
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning: our outlook and guidance for future financial results, including revenue, gross margin, operating margin, net income per diluted share, and diluted share count; AI-driven semiconductor demand and device complexity; our focus on operational execution; the perceived benefits of our strategic investments; our ability to outgrow the wafer fabrication equipment market as the industry expands; and deferred revenue. These statements are not a guarantee of future performance and involve a number of risks, uncertainties, and other factors that could cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed or implied in this press release. Such risks, uncertainties, and other factors include: our assumptions related to continued expansion of the wafer fabrication equipment market, growth of deposition and etch intensity, and scaling of our operations may prove invalid; business, economic, political, and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy, including wafer fabrication equipment spending or demand related to AI, may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to realize the value of our products and technology, successfully commercialize new products and technologies, implement pricing initiatives, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in research and development, product innovation, customer support, and future growth opportunities; trade regulations, export controls (including entity listings, end use/user controls, technology controls, and foreign direct product rules), tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products or services; supply chain cost increases, tariffs, and other inflationary pressures may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the "Risk Factors" described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should evaluate all forward-looking statements made in this press release in the context of these risks, uncertainties, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on our current beliefs, expectations, and assumptions about future events. Except as required by law, we undertake no obligation to update the information or statements made in this press release.
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)
Condensed Consolidated Financial Tables Follow.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended
September 27,
2026
June 28,
2026
September 28,
2025
Revenue
$ 8,219,418
$ 6,722,238
$ 5,324,173
Cost of goods sold
3,920,565
3,243,498
2,639,294
Gross margin
4,298,853
3,478,740
2,684,879
Gross margin as a percent of revenue
52.3 %
51.7 %
50.4 %
Research and development
666,398
642,922
576,446
Selling, general and administrative
348,728
322,330
279,345
Total operating expenses
1,015,126
965,252
855,791
Operating income
3,283,727
2,513,488
1,829,088
Operating margin
40.0 %
37.4 %
34.4 %
Other income (expense), net
28,493
41,654
30,074
Income before income taxes
3,312,220
2,555,142
1,859,162
Income tax expense
(559,082)
(277,860)
(290,502)
Net income
$ 2,753,138
$ 2,277,282
$ 1,568,660
Net income per share:
Basic
$ 2.20
$ 1.82
$ 1.24
Diluted
$ 2.19
$ 1.81
$ 1.24
Number of shares used in per share calculations:
Basic
1,250,883
1,251,286
1,264,446
Diluted
1,255,768
1,256,032
1,269,313
Cash dividend declared per common share
$ 0.33
$ 0.26
$ 0.26
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 27,
2026
June 28,
2026
September 28,
2025
(unaudited)
(1)
(unaudited)
ASSETS
Cash and cash equivalents
$ 7,437,384
$ 5,579,171
$ 6,693,046
Accounts receivable, net
5,658,379
5,339,682
3,633,034
Inventories
4,550,544
4,276,111
4,095,054
Prepaid expenses and other current assets
477,805
415,741
385,580
Total current assets
18,124,112
15,610,705
14,806,714
Property and equipment, net
3,126,029
2,956,472
2,510,531
Goodwill and intangible assets
1,911,547
1,895,859
1,826,950
Other assets
3,191,368
3,066,707
2,756,016
Total assets
$ 26,353,056
$ 23,529,743
$ 21,900,211
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt and finance lease obligations
$ 3,486
$ 4,073
$ 754,363
Other current liabilities
7,309,013
5,933,176
5,953,547
Total current liabilities
7,312,499
5,937,249
6,707,910
Long-term debt and finance lease obligations
3,731,958
3,730,490
3,729,580
Income taxes payable
684,273
681,197
646,044
Other long-term liabilities
715,852
709,886
623,925
Total liabilities
12,444,582
11,058,822
11,707,459
Stockholders' equity (2)
13,908,474
12,470,921
10,192,752
Total liabilities and stockholders' equity
$ 26,353,056
$ 23,529,743
$ 21,900,211
(1)
Derived from audited financial statements.
(2)
Common shares issued and outstanding were 1,249,145 as of September 27, 2026, 1,251,278 as of June 28, 2026, and 1,259,176 as of September 28, 2025.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended
September 27,
2026
June 28,
2026
September 28,
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$ 2,753,138
$ 2,277,282
$ 1,568,660
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
122,072
119,642
101,644
Deferred income taxes
(55,300)
(175,752)
(62,875)
Equity-based compensation expense
114,696
103,985
97,241
Other, net
27,633
(8,006)
(1,890)
Changes in operating assets and liabilities
535,413
(859,923)
76,184
Net cash provided by operating activities
3,497,652
1,457,228
1,778,964
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets
(257,697)
(188,801)
(185,121)
Other, net
(9,292)
45,060
(927)
Net cash used for investing activities
(266,989)
(143,741)
(186,048)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt, including finance lease obligations and payments for debt issuance costs
(34,489)
(1,355)
(1,417)
Treasury stock purchases, including excise tax payments
(1,024,965)
(246,560)
(975,791)
Dividends paid
(325,402)
(325,318)
(291,981)
Reissuance of treasury stock related to employee stock purchase plan
—
88,780
—
Proceeds from issuance of common stock, net of issuance costs
4,263
4,426
—
Other, net
(1,786)
(282)
(12,449)
Net cash used for financing activities
(1,382,379)
(480,309)
(1,281,638)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
4,663
(2,056)
(7,059)
Net change in cash, cash equivalents, and restricted cash
1,852,947
831,122
304,219
Cash, cash equivalents, and restricted cash at beginning of period (1)
5,597,943
4,766,821
6,407,656
Cash, cash equivalents, and restricted cash at end of period (1)
$ 7,450,890
$ 5,597,943
$ 6,711,875
(1)
Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets.
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended
September 27,
2026
June 28,
2026
Revenue
$ 8,219,418
$ 6,722,238
Gross margin
$ 4,305,019
$ 3,497,336
Gross margin as a percent of revenue
52.4 %
52.0 %
Operating expenses
$ 1,004,280
$ 916,420
Operating income
$ 3,300,739
$ 2,580,916
Operating margin
40.2 %
38.4 %
Net income
$ 2,768,417
$ 2,279,968
Net income per diluted share
$ 2.20
$ 1.82
Shares used in per share calculation - diluted
1,255,768
1,256,032
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 27,
2026
June 28,
2026
U.S. GAAP net income
$ 2,753,138
$ 2,277,282
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold
2,668
2,668
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold
3,498
15,379
Workforce optimization charges - cost of goods sold
—
549
EDC related liability valuation increase - research and development
6,299
27,682
Workforce optimization charges - research and development
—
960
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative
348
348
EDC related liability valuation increase - selling, general and administrative
4,199
18,454
Workforce optimization charges - selling, general and administrative
—
1,388
Amortization of note discounts - other income (expense), net
508
504
Gain on EDC related asset - other income (expense), net
(12,870)
(61,325)
Net income tax benefit on non-GAAP items
(825)
(3,921)
Income tax expense from a change in tax law
11,454
—
Non-GAAP net income
$ 2,768,417
$ 2,279,968
Non-GAAP net income per diluted share
$ 2.20
$ 1.82
U.S. GAAP net income per diluted share
$ 2.19
$ 1.81
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation
1,255,768
1,256,032
Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin,
Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited)
Three Months Ended
September 27,
2026
June 28,
2026
U.S. GAAP gross margin
$ 4,298,853
$ 3,478,740
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations
2,668
2,668
EDC related liability valuation increase
3,498
15,379
Workforce optimization charges
—
549
Non-GAAP gross margin
$ 4,305,019
$ 3,497,336
U.S. GAAP gross margin as a percent of revenue
52.3 %
51.7 %
Non-GAAP gross margin as a percent of revenue
52.4 %
52.0 %
U.S. GAAP operating expenses
$ 1,015,126
$ 965,252
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations
Record quarterly revenue of $4.02 billion, up 12% year-over-year; diluted EPS of $0.57, up 54%Operating income of $1.57 billion, up 44%; operating margin expanded 880 bps to 39.1%Total volume up 5%, with intermodal volume increasing by 7% JACKSONVILLE, Fla., Oct. 21, 2026 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) today announced third quarter 2026 operating income of $1.57 billion and net earnings of $1.05 billion, or $0.57 per diluted share. In the third quarter of 2025, the company reported operating income of $1.09 billion and net earnings of $694 million, or $0.37 per diluted share. Excluding a non-cash goodwill impairment of $164 million in last year’s results, third quarter 2025 adjusted operating income, net earnings, and EPS were $1.25 billion, $818 million, and $0.44, respectively. On a year-over-year basis and compared to adjusted results, operating income increased 25%, net earnings increased 29%, and EPS increased 30%.
Total volume of 1.69 million units for the quarter was 5% higher than third quarter 2025. Revenue totaled $4.02 billion for the quarter, increasing 12% year-over-year, due to increased fuel surcharge revenue together with higher volume and pricing across merchandise, intermodal, and coal.
“CSX delivered strong earnings growth in the third quarter as disciplined execution helped us move more freight, for more customers, while maintaining our high standards for safety and service,” said Steve Angel, president and chief executive officer. “The hard work of our railroaders has positioned us well as we enter the fourth quarter, and we look forward to making continued progress toward best-in-class performance in 2027.”
CSX executives will conduct a conference call with the investment community this afternoon, October 21, at 4:30 p.m. Eastern Time. Investors, media, and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter 3368220 as the passcode.
In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company’s website.
This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.
About CSX and its Disclosures
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.
This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.
Non-GAAP Disclosure
CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparisons to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.
Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515
Advokátní kancelář Rosen Law Firm prověřuje možné porušení zákonů o cenných papírech ze strany společnosti Yiren Digital poté, co její ADS 12. října 2026 klesly o 44 %.
New York, New York--(Newsfile Corp. - October 21, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Yiren Digital Ltd. (NYSE: YRD) resulting from allegations that Yiren may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Yiren securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/cases/yiren-digital-ltd/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
WHAT IS THIS ABOUT: On October 12, 2026, Yiren issued a press release entitled "Yiren Digital Provides Update on Its CEO and Operations." The press release stated that Yiren had "became aware of a police notice published on October 12, 2026, stating that Mr. Ning Tang, the Company's Executive Chairman and Chief Executive Officer, had been subject to criminal compulsory measures in connection with an investigation involving certain affiliates of the Company's controlling shareholder."
On this news, Yiren's American Depositary Shares fell 44% on October 12, 2026.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320279
Source: The Rosen Law Firm PA
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Společnost 8x8 ve fiskálním roce dosáhla tržeb 736 milionů USD a cílí na roční tržby ve výši 1 miliardy USD; od dubnového spuštění AI Studio nasadila 3 200 AI agentů.
Seize the Growth: Twilio’s AI Innovations Are Driving Huge Upside8X8 NASDAQ: EGHT Chief Technology Officer Bryan Martin outlined the company’s strategy to combine its global communications network with artificial intelligence tools, while emphasizing cash flow generation, debt reduction and expansion in Microsoft Teams integrations.
Speaking at the LD Micro conference, Martin said 8X8 generated $736 million in revenue during its last fiscal year and is working toward reaching $1 billion in annual revenue. The company’s business is split roughly evenly between unified communications, contact center offerings and messaging, with messaging representing its fastest-growing segment, he said.
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For the June quarter, 8X8 reported $190 million in revenue and growth in the range of 5% to 6%, according to Martin. Excluding churn associated with the company’s 2022 acquisition of Fuze, revenue growth would have been approximately 8%, he said. The company completed the migration of the Fuze customer base to the 8X8 network at the end of the prior year after a multiyear transition that produced customer churn and other headwinds.
Cash Flow and Debt Reduction
Martin said 8X8 has recorded 22 consecutive quarters of operating cash flow and had $92 million in cash at the end of June. He said the company generates about $20 million in operating cash flow per quarter.
The company had a little more than $300 million of debt on its balance sheet, Martin said, adding that management is using cash flow to reduce that balance. He said more than 43% of the debt had been removed and that the company is committed to returning to a zero-debt position.
Martin also cited a 10% operating margin for the June quarter. He said 8X8’s next quarterly earnings release was scheduled for Nov. 4.
AI Strategy Built Around Communications Data
Martin described 8X8’s AI strategy as an extension of the company’s telecommunications infrastructure, which it has built over roughly two decades. The company operates a global network for voice, messaging and other communications services and holds more than 400 patents related to its network operations, according to Martin.
He said 8X8’s systems can collect and organize communications data across calls, text messages, contact-center interactions, chat platforms and customer relationship management integrations. The company’s “Conversation OS” approach is intended to create a more complete record of customer and employee interactions that can be analyzed by AI tools.
Martin said the company introduced 8X8 AI Studio this year, a product designed to allow customers to build AI agents using natural language rather than requiring coding expertise. The company had 3,200 AI agents in production workloads since the product’s April launch, he said.
Martin said an Irish power company had built about 800 bots using the platform.
He said a wholesale supplier serving companies including Home Depot was also deploying bots through 8X8 AI Studio.
He described AI Studio as one of only two “viral” products he has seen during his career, alongside the company’s video meetings product during the COVID-19 period.
Martin argued that owning underlying network infrastructure can provide an advantage in AI deployments. For example, he said AI-based fraud prevention can operate at the network layer and stop suspected fraudulent calls before they reach a customer’s applications or employees.
Contact Centers and Human Agents
During a question-and-answer session, Martin pushed back on the view that AI adoption will reduce contact-center seat revenue by replacing human agents. He said 8X8’s year-over-year count of human contact-center agent seats has increased rather than declined.
“All this AI application sits on top of that seat revenue and the number of seats is increasing, not decreasing,” Martin said.
He characterized paid AI adoption as still being in the early stages, in part because many customer-service automation deployments are not yet configured effectively. Martin said AI systems should rapidly transfer customers to human representatives when they cannot resolve an issue, and human agents should receive the customer’s relevant information rather than requiring the customer to repeat the interaction.
Microsoft Teams Opportunity
Martin said 8X8 has partnered with Microsoft since about 2020 and currently supports about 1 million Microsoft Teams seats on its network. He said the company wants to expand that number substantially.
In January, 8X8 acquired Callroute, whose software is being certified with Microsoft, according to Martin. The offering is intended to make it easier for organizations using Teams for video and chat to use the platform for external phone calling as well.
Martin said 8X8 supports Microsoft Teams in 59 countries, compared with Microsoft’s deployment footprint in 35 countries. He said the company is willing to share communications data with Microsoft’s Copilot AI tools, distinguishing its approach from competitors that seek to retain the data within their own AI systems.
About 8X8 (NASDAQ:EGHT)8x8, Inc is a cloud communications and customer engagement company that provides software and services for businesses. Its platform combines business phone systems, unified communications, contact center capabilities, team messaging, video meetings and application programming interfaces for communications-enabled applications.
The company's offerings include 8x8 Work, a cloud-based business communications service, and 8x8 Contact Center, which supports customer service operations across voice and digital channels.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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SouthState ve třetím čtvrtletí dosáhla čistého zisku 224 milionů USD neboli 2,30 USD na zředěnou akcii; čistý úrokový výnos vzrostl mezikvartálně o 3 % na 592 milionů USD.
, /PRNewswire/ -- SouthState Bank Corporation ("SouthState" or the "Company") (NYSE: SSB) today released its unaudited results of operations and other financial information for the three-month and nine-month periods ended September 30, 2026.
SouthState Bank Corporation Reports Third Quarter 2026 Results "The third quarter was marked by strong balance sheet growth and a stable net interest margin," said John C. Corbett, SouthState's chief executive officer. "Loans and deposits each grew at a 9% annualized rate, with growth broad-based across our geographies and business lines, and boosted by the bankers we've added over the past year. Asset quality remains favorable, and while capital markets activity softened as treasury yields rose, the core franchise continues to perform well."
Highlights of the third quarter of 2026 include:
Returns
Reported diluted Earnings per Share ("EPS") and Adjusted Diluted EPS (Non-GAAP) of $2.30 Net Income of $224 million Return on Average Common Equity of 9.7%; Return on Average Tangible Common Equity (Non-GAAP) of 16.6%* Return on Average Assets ("ROAA") of 1.29%* Book Value per Share of $93.51 Tangible Book Value ("TBV") per Share (Non-GAAP) of $58.19, an increase of 7% year over year, after raising the dividend by 10%, and repurchasing nearly 5% of the Company's shares over the past year Performance
Net Interest Income of $592 million, an increase of $16 million, or 3%, compared to the prior quarter Noninterest Income of $94 million, compared to $97 million in the prior quarter; Noninterest Income represented 0.54%* of average assets, compared to 0.57%* in the prior quarter Noninterest Expense of $375 million, an increase of $17 million compared to the prior quarter primarily due to an increase in salaries and employee benefits expense; compensation expense increases were due to July 1 merit increases, successful execution of the revenue producer hiring initiative, higher incentive accruals, and a reduction in deferred loan costs compared to the prior quarter Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP), of 3.77% and 3.78%, respectively; loan accretion income of $27 million, a decrease of $6 million compared to the prior quarter and a decrease of $56 million year over year Net charge-offs totaled $12 million, or 0.09%* of average loans $20 million of Provision for Credit Losses ("PCL"); total Allowance for Credit Losses ("ACL") plus reserve for unfunded commitments of 1.29% of loans Efficiency Ratio of 52% Balance Sheet
Loans increased by $1.2 billion, or 9%*, compared to the prior quarter and increased by $4.4 billion, or 9%, year over year; deposits increased by $1.3 billion, or 9%*, and increased by $3.6 billion, or 7%, year over year; ending loan to deposit ratio of 90% Total deposit cost of 1.80%, up 0.04% from the prior quarter Repurchased a total of 250,000 shares during the quarter at a weighted average price of $104.45 Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.4%, 13.5%, 9.4%, and 11.1%, respectively† Subsequent Events
The Board of Directors of the Company declared a quarterly cash dividend on its common stock of $0.66 per share, payable on November 13, 2026 to shareholders of record as of November 6, 2026 ∗ Annualized percentages
† Preliminary
Financial Performance
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
Sep. 30,
INCOME STATEMENT
2026
2026
2026
2025
2025
2026
2025
Interest Income
Loans, including fees (1)
$
772,100
$
744,652
$
721,571
$
748,106
$
782,382
$
2,238,322
$
2,253,471
Investment and trading securities, federal funds sold
and securities purchased under agreements to resell
92,756
93,607
95,258
100,640
99,300
281,622
277,281
Total interest income
864,856
838,259
816,829
848,746
881,682
2,519,944
2,530,752
Interest Expense
Deposits
256,051
244,216
238,522
250,189
257,271
738,789
744,820
Federal funds purchased, securities sold under
agreements to repurchase, and other borrowings
17,287
18,094
16,702
17,442
24,714
52,083
63,740
Total interest expense
273,338
262,310
255,224
267,631
281,985
790,872
808,560
Net Interest Income
591,518
575,949
561,605
581,115
599,697
1,729,072
1,722,192
Provision for credit losses ("PCL")
20,345
15,919
10,808
6,605
5,085
47,072
113,152
Net Interest Income after PCL
571,173
560,030
550,797
574,510
594,612
1,682,000
1,609,040
Noninterest Income
Operating income
93,911
96,726
100,098
105,753
99,086
290,735
271,523
Securities losses, net
—
—
—
—
—
—
(228,811)
Gain on sale leaseback, net of transaction costs
—
—
—
—
—
—
229,279
Total noninterest income
93,911
96,726
100,098
105,753
99,086
290,735
271,991
Noninterest Expense
Operating expense
374,763
357,749
359,524
364,196
351,453
1,092,036
1,042,955
Merger, branch consolidation, severance related,
and other expense (8)
—
—
—
4,494
20,889
—
113,274
FDIC special assessment
—
—
—
(3,835)
—
—
—
Total noninterest expense
374,763
357,749
359,524
364,855
372,342
1,092,036
1,156,229
Income before Income Tax Provision
290,321
299,007
291,371
315,408
321,356
880,699
724,802
Income tax provision
66,523
68,985
65,551
67,686
74,715
201,059
173,857
Net Income
$
223,798
$
230,022
$
225,820
$
247,722
$
246,641
$
679,640
$
550,945
Adjusted Net Income (non-GAAP) (2)
Net Income (GAAP)
$
223,798
$
230,022
$
225,820
$
247,722
$
246,641
$
679,640
$
550,945
Securities losses, net of tax
—
—
—
—
—
—
178,639
Gain on sale leaseback, net of transaction costs
and tax
—
—
—
—
—
—
(179,004)
Initial provision for credit losses - Non-PCD loans
and UFC from Independent, net of tax
—
—
—
—
—
—
71,892
Merger, branch consolidation, severance related,
and other expense, net of tax (8)
—
—
—
3,529
16,032
—
87,719
Deferred tax asset remeasurement
—
—
—
—
—
—
5,581
FDIC special assessment, net of tax
—
—
—
(3,012)
—
—
—
Adjusted Net Income (non-GAAP)
$
223,798
$
230,022
$
225,820
$
248,239
$
262,673
$
679,640
$
715,772
Basic earnings per common share
$
2.31
$
2.36
$
2.29
$
2.48
$
2.44
$
6.96
$
5.43
Diluted earnings per common share
$
2.30
$
2.35
$
2.28
$
2.46
$
2.42
$
6.93
$
5.41
Adjusted net income per common share - Basic
(non-GAAP) (2)
$
2.31
$
2.36
$
2.29
$
2.48
$
2.60
$
6.96
$
7.06
Adjusted net income per common share - Diluted
(non-GAAP) (2)
$
2.30
$
2.35
$
2.28
$
2.47
$
2.58
$
6.93
$
7.03
Dividends per common share
$
0.66
$
0.60
$
0.60
$
0.60
$
0.60
$
1.86
$
1.68
Basic weighted-average common shares
outstanding
96,922,986
97,300,899
98,544,242
100,063,315
101,218,431
97,583,437
101,373,803
Diluted weighted-average common shares
outstanding
97,429,305
97,676,767
98,922,258
100,618,796
101,735,095
98,001,720
101,807,090
Effective tax rate
22.91
%
23.07
%
22.50
%
21.46
%
23.25
%
22.83
%
23.99
%
Performance and Capital Ratios
Three Months Ended
Nine Months Ended
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
Sep. 30,
2026
2026
2026
2025
2025
2026
2025
PERFORMANCE RATIOS
Return on average assets (annualized)
1.29
%
1.36
%
1.37
%
1.47
%
1.49
%
1.34
%
1.14
%
Adjusted return on average assets (annualized) (non-GAAP) (2)
1.29
%
1.36
%
1.37
%
1.48
%
1.59
%
1.34
%
1.48
%
Return on average common equity (annualized)
9.70
%
10.19
%
10.11
%
10.90
%
11.04
%
10.00
%
8.50
%
Adjusted return on average common equity (annualized) (non-GAAP) (2)
9.70
%
10.19
%
10.11
%
10.92
%
11.75
%
10.00
%
11.05
%
Return on average tangible common equity (annualized) (non-GAAP) (3)
16.60
%
17.62
%
17.59
%
19.10
%
19.62
%
17.26
%
15.80
%
Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)
16.60
%
17.62
%
17.59
%
19.14
%
20.81
%
17.26
%
20.10
%
Efficiency ratio (tax equivalent)
51.61
%
50.00
%
51.05
%
49.65
%
49.88
%
50.89
%
54.35
%
Adjusted efficiency ratio (non-GAAP) (4)
51.61
%
50.00
%
51.05
%
49.56
%
46.89
%
50.89
%
48.68
%
Dividend payout ratio (5)
28.60
%
25.31
%
26.12
%
24.23
%
24.59
%
26.66
%
30.89
%
Book value per common share
$
93.51
$
94.17
$
92.21
$
91.38
$
89.14
Tangible book value per common share (non-GAAP) (3)
$
58.19
$
58.72
$
56.90
$
56.27
$
54.48
CAPITAL RATIOS
Equity-to-assets
12.8
%
13.3
%
13.3
%
13.5
%
13.6
%
Tangible equity-to-tangible assets (non-GAAP) (3)
8.4
%
8.7
%
8.6
%
8.8
%
8.8
%
Tier 1 leverage (6)
9.4
%
9.4
%
9.4
%
9.3
%
9.4
%
Tier 1 common equity (6)
11.1
%
11.1
%
11.3
%
11.4
%
11.5
%
Tier 1 risk-based capital (6)
11.1
%
11.1
%
11.3
%
11.4
%
11.5
%
Total risk-based capital (6)
13.5
%
13.5
%
13.7
%
13.8
%
14.0
%
Balance Sheet
Ending Balance
(Dollars in thousands, except per share and share data)
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
BALANCE SHEET
2026
2026
2026
2025
2025
Assets
Cash and due from banks
$
527,622
$
649,079
$
598,218
$
583,375
$
582,792
Federal funds sold and interest-earning deposits with banks
2,446,996
1,701,233
2,268,864
2,589,108
2,561,663
Cash and cash equivalents
2,974,618
2,350,312
2,867,082
3,172,483
3,144,455
Trading securities, at fair value
141,534
191,094
117,590
110,183
107,519
Investment securities:
Securities held to maturity
1,905,299
1,955,754
2,007,249
2,048,030
2,096,727
Securities available for sale, at fair value
6,393,309
6,598,177
6,530,348
6,313,756
6,042,800
Other investments
407,172
366,986
370,924
353,428
366,218
Total investment securities
8,705,780
8,920,917
8,908,521
8,715,214
8,505,745
Loans held for sale
296,835
405,441
327,935
345,343
346,673
Loans:
Purchased credit deteriorated
2,454,067
2,658,792
2,818,360
2,977,499
3,160,359
Purchased non-credit deteriorated
9,291,111
9,921,791
10,714,489
11,232,414
11,877,828
Non-acquired
40,307,915
38,266,289
35,963,934
34,388,614
32,629,724
Less allowance for credit losses
(588,918)
(586,664)
(585,882)
(585,197)
(590,133)
Loans, net
51,464,175
50,260,208
48,910,901
48,013,330
47,077,778
Premises and equipment, net
992,295
992,594
993,584
994,176
961,510
Bank owned life insurance
1,321,036
1,311,197
1,302,382
1,293,574
1,285,532
Mortgage servicing rights
101,990
91,442
90,018
84,032
84,491
Core deposit and other intangibles
322,589
343,424
364,686
386,326
409,890
Goodwill
3,094,059
3,094,059
3,094,059
3,094,059
3,094,059
Other assets
1,024,753
949,340
1,002,465
988,692
1,030,558
Total assets
$
70,439,664
$
68,910,028
$
67,979,223
$
67,197,412
$
66,048,210
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing
$
13,445,715
$
13,451,094
$
13,650,799
$
13,375,697
$
13,430,459
Interest-bearing
44,192,566
42,898,716
42,224,864
41,770,100
40,642,810
Total deposits
57,638,281
56,349,810
55,875,663
55,145,797
54,073,269
Federal funds purchased and securities
sold under agreements to repurchase
498,173
569,486
643,386
618,215
594,092
Other borrowings
996,855
996,749
696,642
696,536
696,429
Reserve for unfunded commitments
82,299
76,525
69,229
69,619
68,538
Other liabilities
2,176,723
1,785,990
1,663,387
1,608,137
1,604,756
Total liabilities
61,392,331
59,778,560
58,948,307
58,138,304
57,037,084
Shareholders' equity:
Common stock - $2.50 par value; authorized 160,000,000 shares
241,894
242,428
244,844
247,845
252,723
Surplus
6,233,566
6,247,484
6,332,285
6,480,471
6,647,952
Retained earnings
3,111,483
2,951,691
2,779,896
2,614,173
2,426,463
Accumulated other comprehensive loss
(539,610)
(310,135)
(326,109)
(283,381)
(316,012)
Total shareholders' equity
9,047,333
9,131,468
9,030,916
9,059,108
9,011,126
Total liabilities and shareholders' equity
$
70,439,664
$
68,910,028
$
67,979,223
$
67,197,412
$
66,048,210
Common shares issued and outstanding
96,757,601
96,971,142
97,937,653
99,138,204
101,089,231
Net Interest Income and Margin
Three Months Ended
Sep. 30, 2026
Jun. 30, 2026
Sep. 30, 2025
(Dollars in thousands)
Average
Income/
Yield/
Average
Income/
Yield/
Average
Income/
Yield/
YIELD ANALYSIS
Balance
Expense
Rate
Balance
Expense
Rate
Balance
Expense
Rate
Interest-Earning Assets:
Federal funds sold and interest-earning deposits with banks
$
1,226,660
$
9,861
3.19
%
$
1,386,864
$
12,236
3.54
%
$
2,212,239
$
23,271
4.17
%
Investment securities
9,265,691
82,895
3.55
%
9,213,359
81,371
3.54
%
8,624,670
76,029
3.50
%
Loans held for sale
249,878
4,274
6.79
%
286,422
4,602
6.44
%
289,884
5,067
6.93
%
Total loans held for investment
51,475,218
767,826
5.92
%
50,247,114
740,050
5.91
%
47,600,317
777,315
6.48
%
Total interest-earning assets
62,217,447
864,856
5.51
%
61,133,759
838,259
5.50
%
58,727,110
881,682
5.96
%
Noninterest-earning assets
6,577,077
6,694,407
6,762,434
Total Assets
$
68,794,524
$
67,828,166
$
65,489,544
Interest-Bearing Liabilities ("IBL"):
Transaction and money market accounts
$
32,634,509
$
189,191
2.30
%
$
32,098,340
$
180,220
2.25
%
$
29,623,457
$
187,627
2.51
%
Savings deposits
2,794,029
1,655
0.24
%
2,817,269
1,638
0.23
%
2,879,488
1,940
0.27
%
Certificates and other time deposits
7,493,938
65,205
3.45
%
7,184,745
62,358
3.48
%
7,310,133
67,704
3.67
%
Federal funds purchased
266,686
2,455
3.65
%
289,337
2,616
3.63
%
331,707
3,640
4.35
%
Repurchase agreements
260,312
1,319
2.01
%
293,341
1,477
2.02
%
281,395
1,527
2.15
%
Other borrowings
791,385
13,513
6.77
%
851,660
14,001
6.59
%
974,992
19,547
7.95
%
Total interest-bearing liabilities
44,240,859
273,338
2.45
%
43,534,692
262,310
2.42
%
41,401,172
281,985
2.70
%
Noninterest-bearing deposits
13,500,596
13,521,146
13,541,840
Other noninterest-bearing liabilities
1,898,722
1,719,228
1,679,124
Shareholders' equity
9,154,347
9,053,100
8,867,408
Total Non-IBL and shareholders' equity
24,553,665
24,293,474
24,088,372
Total Liabilities and Shareholders' Equity
$
68,794,524
$
67,828,166
$
65,489,544
Net Interest Income and Margin (Non-Tax Equivalent)
$
591,518
3.77
%
$
575,949
3.78
%
$
599,697
4.05
%
Net Interest Margin (Tax Equivalent) (non-GAAP)
3.78
%
3.78
%
4.06
%
Total Deposit Cost (without Debt and Other Borrowings)
1.80
%
1.76
%
1.91
%
Overall Cost of Funds (including Demand Deposits)
1.88
%
1.84
%
2.04
%
Total Accretion on Acquired Loans (1)
$
26,642
$
33,054
$
82,976
Tax Equivalent ("TE") Adjustment
$
769
$
751
$
718
• The remaining loan discount on acquired loans to be accreted into loan interest income totals $159.3 million as of September 30, 2026.
Noninterest Income and Expense
Three Months Ended
Nine Months Ended
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
Sep. 30,
(Dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Noninterest Income:
Fees on deposit accounts
$
42,811
$
41,568
$
38,699
$
41,950
$
42,572
$
123,078
$
116,374
Mortgage banking income
5,630
4,890
11,016
5,158
5,462
21,536
19,135
Trust and investment services income
15,838
15,164
14,471
14,684
14,157
45,473
43,508
Correspondent banking and capital markets income
20,124
24,839
24,427
30,638
25,522
69,390
61,398
Expense on centrally-cleared variation margin
(5,560)
(4,028)
(3,000)
(3,167)
(4,318)
(12,588)
(16,882)
Total correspondent banking and capital markets income
14,564
20,811
21,427
27,471
21,204
56,802
44,516
Bank owned life insurance income
9,929
9,624
9,494
9,633
10,597
29,047
29,949
Other
5,139
4,669
4,991
6,857
5,094
14,799
18,041
Securities losses, net
—
—
—
—
—
—
(228,811)
Gain on sale leaseback, net of transaction costs
—
—
—
—
—
—
229,279
Total Noninterest Income
$
93,911
$
96,726
$
100,098
$
105,753
$
99,086
$
290,735
$
271,991
Noninterest Expense:
Salaries and employee benefits
$
217,237
$
205,377
$
205,653
$
202,714
$
199,148
$
628,267
$
595,121
Occupancy expense
44,136
43,878
42,302
42,567
40,874
130,316
117,874
Information services expense
29,968
29,136
29,704
30,443
28,988
88,808
90,505
OREO and loan related expense
3,106
952
4,378
867
5,427
8,436
9,506
Business development and staff related
10,877
10,639
11,362
13,485
8,907
32,877
22,600
Amortization of intangibles
20,628
21,041
21,304
23,417
23,426
62,973
71,305
Professional fees
5,898
5,090
5,239
7,410
4,994
16,227
14,361
FDIC assessment and other regulatory charges
10,911
10,753
10,257
9,884
8,374
31,921
31,101
Advertising and marketing
4,178
3,836
3,325
4,710
2,980
11,339
8,280
Other operating expenses
27,824
27,047
26,000
28,699
28,335
80,872
82,302
Merger, branch consolidation, severance related and other expense (8)
—
—
—
4,494
20,889
—
113,274
FDIC special assessment
—
—
—
(3,835)
—
—
—
Total Noninterest Expense
$
374,763
$
357,749
$
359,524
$
364,855
$
372,342
$
1,092,036
$
1,156,229
Loans and Deposits
The following table presents a summary of the loan portfolio by type:
Ending Balance
(Dollars in thousands)
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
LOAN PORTFOLIO (7)
2026
2026
2026
2025
2025
Construction and land development * †
$
2,917,132
$
2,982,968
$
2,592,908
$
2,548,360
$
2,678,971
Investor commercial real estate*
19,079,859
18,656,455
18,298,938
17,883,913
17,603,205
Commercial owner occupied real estate
7,951,811
7,852,391
7,671,535
7,576,991
7,529,075
Commercial and industrial
9,804,607
9,378,444
9,385,926
9,181,408
8,644,636
Consumer real estate *
11,343,405
11,034,102
10,573,897
10,450,223
10,202,026
Consumer/other
956,279
942,512
973,579
957,632
1,009,998
Total Loans
$
52,053,093
$
50,846,872
$
49,496,783
$
48,598,527
$
47,667,911
*
Single family home construction-to-permanent loans originated by the Company's mortgage banking division are included in construction and land development category until completion. Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property. Consumer real estate includes consumer owner occupied real estate and home equity loans.
†
Includes single family home construction-to-permanent loans of $370.5 million, $358.4 million, $360.4 million, $342.8 million, and $350.2 million, for the quarters ended September 30, 2026, June 30, 2026, March 31, 2036, December 31, 2025, and September 30, 2025, respectively.
Ending Balance
(Dollars in thousands)
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
DEPOSITS
2026
2026
2026
2025
2025
Noninterest-bearing checking
$
13,445,715
$
13,451,094
$
13,650,799
$
13,375,697
$
13,430,459
Interest-bearing checking
14,323,722
14,710,312
14,119,614
13,838,558
12,906,408
Savings
2,775,607
2,796,845
2,841,408
2,820,621
2,853,410
Money market
18,741,198
17,531,137
18,014,140
17,751,688
17,251,469
Time deposits
8,352,039
7,860,422
7,249,702
7,359,233
7,631,523
Total Deposits
$
57,638,281
$
56,349,810
$
55,875,663
$
55,145,797
$
54,073,269
Asset Quality
Ending Balance
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
(Dollars in thousands)
2026
2026
2026
2025
2025
NONPERFORMING ASSETS:
Non-acquired
Non-acquired nonaccrual loans and restructured loans on nonaccrual
$
159,465
$
171,264
$
177,158
$
161,975
$
146,751
Accruing loans past due 90 days or more
3,642
2,961
6,915
2,997
4,352
Non-acquired OREO and other nonperforming assets
11,939
11,722
8,339
5,273
11,969
Total non-acquired nonperforming assets
175,046
185,947
192,412
170,245
163,072
Acquired
Acquired nonaccrual loans and restructured loans on nonaccrual
124,870
99,352
116,002
135,179
149,695
Accruing loans past due 90 days or more
6,987
835
1,986
1,944
891
Acquired OREO and other nonperforming assets
3,867
1,254
18,155
3,901
7,147
Total acquired nonperforming assets
135,724
101,441
136,143
141,024
157,733
Total nonperforming assets
$
310,770
$
287,388
$
328,555
$
311,269
$
320,805
Three Months Ended
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
2026
2026
2026
2025
2025
ASSET QUALITY RATIOS (7):
Allowance for credit losses as a percentage of loans
1.13
%
1.15
%
1.18
%
1.20
%
1.24
%
Allowance for credit losses, including reserve for unfunded commitments,
as a percentage of loans
1.29
%
1.30
%
1.32
%
1.35
%
1.38
%
Allowance for credit losses as a percentage of nonperforming loans
199.66
%
213.79
%
193.96
%
193.71
%
195.61
%
Net charge-offs as a percentage of average loans (annualized)
0.09
%
0.06
%
0.09
%
0.09
%
0.27
%
Total nonperforming assets as a percentage of total assets
0.44
%
0.42
%
0.48
%
0.46
%
0.49
%
Nonperforming loans as a percentage of period end loans
0.57
%
0.54
%
0.61
%
0.62
%
0.63
%
Current Expected Credit Losses ("CECL")
Below is a table showing the roll forward of the ACL and UFC for the third quarter of 2026:
Allowance for Credit Losses ("ACL") and Unfunded Commitments ("UFC")
(Dollars in thousands)
Non-PCD ACL
PCD ACL
Total ACL
UFC
Ending balance 6/30/2026
$
526,492
$
60,172
$
586,664
$
76,525
Charge offs
(10,354)
—
(10,354)
N/A
Acquired charge offs
(1,708)
(5,663)
(7,371)
N/A
Recoveries
2,459
—
2,459
N/A
Acquired recoveries
1,017
1,932
2,949
N/A
Provision for credit losses
11,942
2,629
14,571
5,774
Ending balance 9/30/2026
$
529,848
$
59,070
$
588,918
$
82,299
Period end loans
$
49,599,026
$
2,454,067
$
52,053,093
N/A
Allowance for Credit Losses to Loans
1.07
%
2.41
%
1.13
%
N/A
Unfunded commitments (off balance sheet) †
$
13,392,711
Reserve to unfunded commitments (off balance sheet)
0.61
%
†
Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.
Conference Call
The Company will host a conference call to discuss its third quarter results at 9:00 a.m. Eastern Time on October 22, 2026. Callers wishing to participate may call toll-free by dialing (833) 461-5787 within the US. The numbers for international participants are listed at https://help.events.q4inc.com/eahc/international-dial-in-numbers. The conference ID number is 728284222. Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com. A replay of the live webcast is expected to be available by the evening of October 22, 2026 on the Investor Relations section of SouthStateBank.com.
SouthState is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than 1.8 million customers throughout Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia and Tennessee. The bank also serves clients nationwide through its correspondent banking division. Additional information is available at SouthStateBank.com.
Non-GAAP Measures
Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures. Although other companies may use calculation methods that differ from those used by SouthState for non-GAAP measures, management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.
(Dollars in thousands)
Three Months Ended
PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)
Sep. 30, 2026
Jun. 30, 2026
Mar. 31, 2026
Dec. 31, 2025
Sep. 30, 2025
Net income (GAAP)
$
223,798
$
230,022
$
225,820
$
247,722
$
246,641
Provision for credit losses
20,345
15,919
10,808
6,605
5,085
Income tax provision
66,523
68,985
65,551
67,686
74,715
Merger, branch consolidation, severance related and other expense (8)
—
—
—
4,494
20,889
FDIC special assessment
—
—
—
(3,835)
—
Pre-provision net revenue (PPNR) (Non-GAAP)
$
310,666
$
314,926
$
302,179
$
322,672
$
347,330
(Dollars in thousands)
Three Months Ended
NET INTEREST MARGIN ("NIM"), TE (NON-GAAP)
Sep. 30, 2026
Jun. 30, 2026
Mar. 31, 2026
Dec. 31, 2025
Sep. 30, 2025
Net interest income (GAAP)
$
591,518
$
575,949
$
561,605
$
581,115
$
599,697
Total average interest-earning assets
62,217,447
61,133,759
60,201,176
59,872,113
58,727,110
NIM, non-tax equivalent
3.77
%
3.78
%
3.78
%
3.85
%
4.05
%
Tax equivalent adjustment (included in NIM, TE)
769
751
760
800
718
Net interest income, tax equivalent (Non-GAAP)
$
592,287
$
576,700
$
562,365
$
581,915
$
600,415
NIM, TE (Non-GAAP)
3.78
%
3.78
%
3.79
%
3.86
%
4.06
%
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Sep. 30,
Sep. 30,
Sep. 30,
RECONCILIATION OF GAAP TO NON-GAAP
2026
2026
2026
2025
2025
2026
2025
Adjusted Net Income (non-GAAP) (2)
Net income (GAAP)
$
223,798
$
230,022
$
225,820
$
247,722
$
246,641
$
679,640
$
550,945
Securities losses, net of tax
—
—
—
—
—
—
178,639
Gain on sale leaseback, net of transaction costs and tax
—
—
—
—
—
—
(179,004)
PCL - Non-PCD loans and UFC, net of tax
—
—
—
—
—
—
71,892
Merger, branch consolidation, severance related and other expense,
net of tax (8)
—
—
—
3,529
16,032
—
87,719
Deferred tax asset remeasurement
—
—
—
—
—
—
5,581
FDIC special assessment, net of tax
—
—
—
(3,012)
—
—
—
Adjusted net income (non-GAAP)
$
223,798
$
230,022
$
225,820
$
248,239
$
262,673
$
679,640
$
715,772
Adjusted Net Income per Common Share - Basic (non-GAAP) (2)
Earnings per common share - Basic (GAAP)
$
2.31
$
2.36
$
2.29
$
2.48
$
2.44
$
6.96
$
5.43
Effect to adjust for securities losses, net of tax
—
—
—
—
—
—
1.76
Effect to adjust for gain on sale leaseback, net of transaction costs and tax
—
—
—
—
—
—
(1.77)
Effect to adjust for PCL - Non-PCD loans and UFC, net of tax
—
—
—
—
—
—
0.71
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
—
—
0.03
0.16
—
0.87
Effect to adjust for deferred tax asset remeasurement
—
—
—
—
—
—
0.06
Effect to adjust for FDIC special assessment, net of tax
—
—
—
(0.03)
—
—
—
Adjusted net income per common share - Basic (non-GAAP)
$
2.31
$
2.36
$
2.29
$
2.48
$
2.60
$
6.96
$
7.06
Adjusted Net Income per Common Share - Diluted (non-GAAP) (2)
Earnings per common share - Diluted (GAAP)
$
2.30
$
2.35
$
2.28
$
2.46
$
2.42
$
6.93
$
5.41
Effect to adjust for securities losses, net of tax
—
—
—
—
—
—
1.75
Effect to adjust for gain on sale leaseback, net of transaction costs and tax
—
—
—
—
—
—
(1.76)
Effect to adjust for PCL - Non-PCD loans and UFC, net of tax
—
—
—
—
—
—
0.71
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
—
—
0.04
0.16
—
0.86
Effect to adjust for deferred tax remeasurement
—
—
—
—
—
—
0.05
Effect to adjust for FDIC special assessment, net of tax
—
—
—
(0.03)
—
—
—
Adjusted net income per common share - Diluted (non-GAAP)
$
2.30
$
2.35
$
2.28
$
2.47
$
2.58
$
6.93
$
7.03
Adjusted Return on Average Assets (non-GAAP) (2)
Return on average assets (GAAP)
1.29
%
1.36
%
1.37
%
1.47
%
1.49
%
1.34
%
1.14
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
0.37
%
Effect to adjust for gain on sale leaseback, net of transaction costs and tax
—
%
—
%
—
%
—
%
—
%
—
%
(0.37)
%
Effect to adjust for PCL - Non-PCD loans and UFC, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
0.15
%
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
%
—
%
—
%
0.03
%
0.10
%
—
%
0.18
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
—
%
—
%
0.01
%
Effect to adjust for FDIC special assessment, net of tax
—
%
—
%
—
%
(0.02)
%
—
%
—
%
—
%
Adjusted return on average assets (non-GAAP)
1.29
%
1.36
%
1.37
%
1.48
%
1.59
%
1.34
%
1.48
%
Adjusted Return on Average Common Equity (non-GAAP) (2)
Return on average common equity (GAAP)
9.70
%
10.19
%
10.11
%
10.90
%
11.04
%
10.00
%
8.50
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
2.76
%
Effect to adjust for gain on sale leaseback, net of transaction costs and tax
—
%
—
%
—
%
—
%
—
%
—
%
(2.76)
%
Effect to adjust for PCL - Non-PCD loans and UFC, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
1.11
%
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
%
—
%
—
%
0.15
%
0.71
%
—
%
1.35
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
—
%
—
%
0.09
%
Effect to adjust for FDIC special assessment, net of tax
—
%
—
%
—
%
(0.13)
%
—
%
—
%
—
%
Adjusted return on average common equity (non-GAAP)
9.70
%
10.19
%
10.11
%
10.92
%
11.75
%
10.00
%
11.05
%
Return on Average Common Tangible Equity (non-GAAP) (3)
Return on average common equity (GAAP)
9.70
%
10.19
%
10.11
%
10.90
%
11.04
%
10.00
%
8.50
%
Effect to adjust for intangible assets
6.90
%
7.43
%
7.48
%
8.20
%
8.58
%
7.26
%
7.30
%
Return on average tangible equity (non-GAAP)
16.60
%
17.62
%
17.59
%
19.10
%
19.62
%
17.26
%
15.80
%
Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3)
Return on average common equity (GAAP)
9.70
%
10.19
%
10.11
%
10.90
%
11.04
%
10.00
%
8.50
%
Effect to adjust for securities losses, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
2.76
%
Effect to adjust for gain on sale leaseback, net of transaction costs and tax
—
%
—
%
—
%
—
%
—
%
—
%
(2.76)
%
Effect to adjust for PCL - Non-PCD loans and UFC, net of tax
—
%
—
%
—
%
—
%
—
%
—
%
1.11
%
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
%
—
%
—
%
0.15
%
0.71
%
—
%
1.35
%
Effect to adjust for deferred tax remeasurement
—
%
—
%
—
%
—
%
—
%
—
%
0.09
%
Effect to adjust for FDIC special assessment, net of tax
—
%
—
%
—
%
(0.13)
%
—
%
—
%
—
%
Effect to adjust for intangible assets, net of tax
6.90
%
7.43
%
7.48
%
8.22
%
9.06
%
7.26
%
9.05
%
Adjusted return on average common tangible equity (non-GAAP)
16.60
%
17.62
%
17.59
%
19.14
%
20.81
%
17.26
%
20.10
%
Adjusted Efficiency Ratio (non-GAAP) (4)
Efficiency ratio
51.61
%
50.00
%
51.05
%
49.65
%
49.88
%
50.89
%
54.35
%
Effect to adjust for securities losses
—
%
—
%
—
%
—
%
—
%
—
%
(5.01)
%
Effect to adjust for gain on sale leaseback, net of transaction costs
—
%
—
%
—
%
—
%
—
%
—
%
5.01
%
Effect to adjust for merger, branch consolidation, severance related
and other expense, net of tax (8)
—
%
—
%
—
%
(0.65)
%
(2.99)
%
—
%
(5.67)
%
Effect to adjust for FDIC special assessment
—
%
—
%
—
%
0.56
%
—
%
—
%
—
%
Adjusted efficiency ratio (non-GAAP)
51.61
%
50.00
%
51.05
%
49.56
%
46.89
%
50.89
%
48.68
%
Tangible Book Value Per Common Share (non-GAAP) (3)
Book value per common share (GAAP)
$
93.51
$
94.17
$
92.21
$
91.38
$
89.14
Effect to adjust for intangible assets
(35.32)
(35.45)
(35.31)
(35.11)
(34.66)
Tangible book value per common share (non-GAAP)
$
58.19
$
58.72
$
56.90
$
56.27
$
54.48
Tangible Equity-to-Tangible Assets (non-GAAP) (3)
Equity-to-assets (GAAP)
12.84
%
13.25
%
13.28
%
13.48
%
13.64
%
Effect to adjust for intangible assets
(4.44)
%
(4.55)
%
(4.64)
%
(4.72)
%
(4.83)
%
Tangible equity-to-tangible assets (non-GAAP)
8.40
%
8.70
%
8.64
%
8.76
%
8.81
%
Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications have no impact on net income or equity as previously reported.
Footnotes to tables:
(1)
Includes loan accretion (interest) income related to the discount on acquired loans of $26.6 million, $33.1 million, $38.8 million, $50.3 million, and $83.0 million during the quarters ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively, and $98.5 million and $208.3 million during the nine months ended September 30, 2026 and 2025, respectively.
(2)
Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, gain on sale leaseback, net of transaction costs, PCL on non-PCD loans and unfunded commitments, deferred tax asset remeasurement, merger, branch consolidation, severance related and other expense, and FDIC special assessments. Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger, branch consolidation, severance related and other expense of $4.5 million and $20.9 million for the quarters ended December 31, 2025 and September 30, 2025, respectively, and $113.3 million during the nine months ended September 30, 2025; (b) pre-tax net securities losses of $(228.8) million for the nine months ended September 30, 2025; (c) pre-tax gain on sale leaseback, net of transaction costs of $229.3 million for the nine months ended September 30, 2025; (d) pre-tax PCL on non-PCD loans and unfunded commitments of $92.1 million for the nine months ended September 30, 2025; (e) pre-tax FDIC special assessment of $(3.8) million for the quarter ended December 31, 2025; and (f) deferred tax asset remeasurement of $5.6 million for the nine months ended September 30, 2025.
(3)
The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets. The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income. Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of GAAP to Non-GAAP" provide tables that reconcile GAAP measures to non-GAAP.
(4)
Adjusted efficiency ratio is calculated by taking the noninterest expense excluding transaction costs on merger, branch consolidation, severance related and other expenses, FDIC special assessment, and amortization of intangible assets, divided by net interest income and noninterest income excluding gains (losses) on sales of securities, net, and gain on sale leaseback, net of transaction costs. The pre-tax amortization expenses of intangible assets were $20.6 million, $21.0 million, $21.3 million, $23.4 million, and $23.4 million for the quarters ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively, and $63.0 million and $71.3 million for the nine months ended September 30, 2026 and 2025, respectively.
(5)
The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.
(6)
September 30, 2026 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed.
(7)
Loan data excludes loans held for sale.
(8)
Includes pre-tax cyber incident net reimbursement of $(3.5) million for the nine months ended September 30, 2025.
Statements included in this communication contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of management of SouthState Bank Corporation ("SouthState") and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward looking statements.
Factors that could cause SouthState's actual results to differ materially from those described in the forward looking statements are discussed in SouthState's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission and available on SouthState's website (https://southstatecorporation.q4ir.com/SEC-Filings/Documents/default.aspx), and on the Securities and Exchange Commission's website (www.sec.gov). SouthState undertakes no obligation to update any forward looking statements.
In its upcoming report, Phillips Edison & Company, Inc. (PECO - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting an increase of 7.7% compared to the same period last year. Revenues are forecasted to be $194.58 million, representing a year-over-year increase of 6.5%.
The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Phillips Edison & Company metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Revenues- Rental income' will reach $186.80 million. The estimate indicates a change of +4.8% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Fees and management income' at $4.08 million. The estimate points to a change of +24.7% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Depreciation and amortization' of $65.75 million.
View all Key Company Metrics for Phillips Edison & Company here>>>
Shares of Phillips Edison & Company have demonstrated returns of +2.8% over the past month compared to the Zacks S&P 500 composite's +1% change. With a Zacks Rank #3 (Hold), PECO is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Net income of $130.4 million; Diluted EPS of $5.84, up 3.7% YoY
Adjusted net income of $171.0 million; Adjusted diluted EPS of $7.66, up 11.8% YoY
EBITDA of $328.8 million and EBITDA margin of 13.3%
Contract awards of $4.8 billion and book-to-bill of 2.0x
Raising fiscal year 2027 guidance for Revenue, Adjusted net income, and Adjusted EPS;
reaffirming guidance for other financial metrics
, /PRNewswire/ -- CACI International Inc (NYSE: CACI) announced results today for its fiscal first quarter ended September 30, 2026.
"Our first quarter results represent a strong start to fiscal year 2027, highlighted by revenue and EBITDA growth, strong EBITDA margin, and healthy free cash flow. We also delivered a 2.0x book-to-bill and another quarter of double-digit funded backlog growth. Our mission proximity, software-defined approach, ability to invest ahead of customer need, and superior execution continue to differentiate CACI and drive our performance," said John Mengucci, CACI President and Chief Executive Officer. "Based on our results, large and growing backlog, and healthy pipeline, we are raising our fiscal year 2027 revenue and earnings profit outlook while reaffirming guidance for other financial metrics. We remain confident in our ability to drive long-term growth in free cash flow per share and deliver exceptional value for our customers and shareholders."
First Quarter Results
Three months ended
(in millions, except earnings per share and DSO)
9/30/2026
9/30/2025
% Change1
Revenues
$ 2,474.6
$ 2,287.6
8.2 %
Income from operations
$ 247.5
$ 212.3
16.6 %
Net income
$ 130.4
$ 124.8
4.5 %
Adjusted net income, a non-GAAP measure2
$ 171.0
$ 151.7
12.7 %
Diluted earnings per share
$ 5.84
$ 5.63
3.7 %
Adjusted diluted earnings per share, a non-GAAP measure2
$ 7.66
$ 6.85
11.8 %
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure2
$ 328.8
$ 268.6
22.4 %
Net cash provided by operating activities excluding MARPA, a non-GAAP measure2
$ 144.8
$ 160.0
(9.5) %
Free cash flow, a non-GAAP measure2
$ 133.5
$ 143.0
(6.6) %
Days sales outstanding (DSO)3
59
56
(1)
Percentages are calculated using the underlying whole dollar amounts. Some percentages may vary slightly due to rounding.
(2)
This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information
regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.
(3)
The DSO calculations for three months ended September 30, 2026 and 2025 exclude the impact of the Company's Master Accounts Receivable Purchase Agreement
(MARPA), which was 7 days for both periods.
Revenues in the first quarter of fiscal year 2027 increased 8.2% year-over-year, including 2.1% organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share were driven by higher income from operations, partially offset by higher interest expense and a higher tax provision. The decrease in cash from operations, excluding MARPA, was driven primarily by higher working capital.
First Quarter Contract Awards
Contract awards in the first quarter totaled $4.8 billion, with approximately 61% for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity contracts. Some notable awards during the quarter were:
CACI was awarded a one-year plus four option periods award to support U.S. Central Command (USCENTCOM) and its mission partners across a demanding and rapidly changing mission environment. The award has a ceiling of $1.5 billion, of which CACI recognized $1.2 billion of award and backlog value based on current requirements in the first quarter of fiscal year 2027. Through Apollo, CACI will help USCENTCOM make faster decisions and coordinate more effectively across commands and partners. The company's capabilities will enhance planning, analysis, information integration, and mission execution across the command's area of responsibility. CACI will help commanders turn information into actionable insight and operate with greater confidence in contested or denied territories, allowing warfighters to out-compete adversaries in the information environment.
CACI was awarded a five-year, $1.6 billion task order to continue to help the U.S. Army Special Operations Command (USASOC) stay ahead of emerging threats across every domain. CACI recognized $1.2 billion of award and backlog value based on current requirements in the first quarter of fiscal year 2027. Through the Special Operations Forces Emerging Threats, Operations, and Planning Support 2 (SOFETOPS 2) program, CACI will continue providing critical operational planning and support that strengthens USASOC's ability to act decisively and work seamlessly with its strategic partners wherever the mission requires.
CACI was awarded a five-year task order valued at up to $281 million by the U.S. Navy's Naval Surface Warfare Center (NSWC) Crane to support in strengthening and advancing next-generation electromagnetic warfare capabilities across the Department of War (DoW).
CACI was awarded a 12-month extension to provide information technology system development, sustainment, and modernization to a government customer.
CACI was awarded a five-year task order valued at up to $185 million to support the U.S. Army's Program Manager Expeditionary Energy and Sustainment Systems (PM E2S2). CACI will develop and integrate technologies that help soldiers sustain operations in contested and austere environments.
CACI was awarded a task order ceiling increase valued at up to $153 million to continue providing unmanned systems support to the U.S. Army Combat Capabilities Development Command (DEVCOM) – Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center to enable warfighter rapid response to current and emerging threats.
CACI was awarded a five-year task order to modernize financial management systems for a federal customer.
CACI was awarded a three and a half-year contract to provide communications sustainment and modernization for a government customer.
CACI was awarded a four-year task order valued at up to $146 million to support the Naval Surface Warfare Center Carderock Division (NSWCCD) in advancing next-generation maritime capabilities for the U.S. Navy.
CACI was awarded a five-year contract to sustain and modernize financial management systems for a Department of War customer.
Total backlog as of September 30, 2026, was $34.0 billion compared with $33.9 billion a year ago, an increase of 0.3%. Funded backlog as of September 30, 2026, was $6.2 billion compared with $5.4 billion a year ago, an increase of 14.8%.
Additional Highlights
CACI was selected as one of 15 awardees to deliver technology that will defend U.S. interests against adversarial threats for the U.S. Space Force. Under the National Space Test and Training Complex (NSTTC) Innovative Technology & Engineering – Space Test and Range (NITE‑STAR) contract, CACI will deliver critical technology advancements that strengthen and modernize the test and training architectures required for realistic operations.
CACI officially opened the CACI Manufacturing Center of Excellence for Defense Electronics in the Greater Rochester, New York, area, marking the next chapter in the company's long-term investment in the region and continued transformation into a technology-first national security company. The additional 61,000-square-foot facility increases CACI's manufacturing space by more than 300% and will serve as a hub for the development, test, assembly, and delivery of advanced electronic warfare technologies that give U.S. forces a decisive advantage in contested environments.
CACI announced that Marcie Small has been appointed Executive Vice President and Chief Human Resources Officer. Small succeeds Angie Combs, who retired from the company after more than seven years of service. With more than 25 years of leadership experience in human capital management, Small has a proven track record of modernizing talent strategies, developing leaders, and building high-performing workforces.
CACI announced the launch of Good Dogs for Great Americans, the company's signature philanthropy program dedicated to helping veterans regain independence through specially trained service dogs. In partnership with the Washington Capitals and America's VetDogs, the program turns defense on the ice into life-changing support for those who defended our nation.
Fiscal Year 2027 Guidance
The table below summarizes our fiscal year 2027 guidance and represents our views as of October 21, 2026.
(in millions, except earnings per share)
Fiscal Year 2027
Current guidance
Prior guidance
Revenues
$10,700 - $10,900
$10,650 - $10,850
Adjusted net income, a non-GAAP measure1
$740 - $760
$735 - $755
Adjusted diluted earnings per share, a non-GAAP measure1
$33.18 - $34.08
$32.96 - $33.86
Diluted weighted average shares
22.3
22.3
Free cash flow, a non-GAAP measure2
At least $900
At least $900
(1)
Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding
intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for
measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and
reconciliation to the GAAP measure included below in this release.
(2)
Free cash flow is defined as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. This non-GAAP
measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.
Conference Call Information
We have scheduled a conference call for 8:00 a.m. Eastern time Thursday, October 22, 2026, during which members of our senior management will be making a brief presentation focusing on first quarter results and operating trends, followed by a question-and-answer session. You can listen to the webcast and view additional information provided in the accompanying slide exhibits on CACI's investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI's investor relations website at http://investor.caci.com/.
About CACI
CACI International Inc (NYSE: CACI) is a technology-first national security company that expands the limits of national security through innovation, discipline, and operational excellence. We deliver advanced technologies that help our customers move faster, operate more efficiently, and anticipate and defeat evolving threats. Our 27,000 talented employees and strong culture drive our success and have earned CACI recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 500™, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit caci.com.
There are statements made herein that do not address historical facts and, therefore, could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics; legal, regulatory, and political change from successive presidential administrations that could result in economic uncertainty; changes in U.S. federal agencies, current agreements with other nations, foreign events, or any other events which may affect the global economy, including the impact of global pandemics; the results of government audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other governmental entities with cognizant oversight; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.
George Price, Senior Vice President, Investor Relations
(571) 597-2787, [email protected]
(703) 841-7818, [email protected]
CACI International Inc
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three months ended
9/30/2026
9/30/2025
% Change
Revenues
$ 2,474,597
$ 2,287,623
8.2 %
Costs of revenues:
Direct costs
1,597,689
1,547,194
3.3
Indirect costs and selling expenses
550,113
473,856
16.1
Depreciation and amortization
79,267
54,298
46.0
Total costs of revenues
2,227,069
2,075,348
7.3
Income from operations
247,528
212,275
16.6
Interest expense and other, net
73,240
46,173
58.6
Income before income taxes
174,288
166,102
4.9
Income taxes
43,921
41,292
6.4
Net income
$ 130,367
$ 124,810
4.5 %
Basic earnings per share
$ 5.90
$ 5.67
4.1 %
Diluted earnings per share
$ 5.84
$ 5.63
3.7 %
Weighted-average basic shares outstanding
22,100
21,994
0.5 %
Weighted-average diluted shares outstanding
22,316
22,166
0.7 %
CACI International Inc
Consolidated Balance Sheets (Unaudited)
(in thousands)
9/30/2026
6/30/2026
ASSETS
Current assets:
Cash and cash equivalents
$ 279,389
$ 191,756
Accounts receivable, net
1,722,873
1,705,087
Prepaid expenses and other current assets
428,943
364,502
Total current assets
2,431,205
2,261,345
Goodwill
6,486,111
6,484,456
Intangible assets, net
2,018,764
2,072,991
Property, plant, and equipment, net
386,547
397,161
Operating lease right-of-use assets
390,617
381,980
Supplemental retirement savings plan assets
103,874
104,878
Other assets
130,417
116,833
Total assets
$ 11,947,535
$ 11,819,644
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
$ 46,750
$ 46,750
Accounts payable
463,031
521,669
Accrued compensation and benefits
263,877
284,602
Other accrued expenses and current liabilities
732,931
670,911
Total current liabilities
1,506,589
1,523,932
Long-term debt, net of current portion
4,789,313
4,854,759
Supplemental retirement savings plan obligations, net of current portion
118,734
119,233
Deferred income taxes
407,454
376,580
Operating lease liabilities
447,236
431,769
Other liabilities
51,518
50,674
Total liabilities
7,320,844
7,356,947
Total shareholders' equity
4,626,691
4,462,697
Total liabilities and shareholders' equity
$ 11,947,535
$ 11,819,644
CACI International Inc
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three months ended
9/30/2026
9/30/2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 130,367
$ 124,810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
79,267
54,298
Amortization of deferred financing costs
1,241
1,196
Stock-based compensation expense
21,711
14,691
Deferred income taxes
26,445
22,273
Other
3,077
—
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net
(17,797)
(15,967)
Prepaid expenses and other assets
(67,263)
(41,587)
Accounts payable and other accrued expenses
10,698
63,747
Accrued compensation and benefits
(20,346)
(41,443)
Income taxes
4,648
(11,456)
Operating lease liabilities, net
(9,725)
(1,418)
Long-term liabilities
(1,009)
1,921
Net cash provided by operating activities
161,314
171,065
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(11,359)
(17,014)
Acquisitions of businesses, net of cash acquired
5,000
15,800
Net cash used in investing activities
(6,359)
(1,214)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
1,211,500
541,000
Principal payments on borrowings
(1,278,188)
(682,688)
Proceeds from employee stock purchase plans
4,031
3,796
Repurchases of common stock
(4,406)
(4,085)
Payment of taxes for equity transactions
(71)
(261)
Net cash used in financing activities
(67,134)
(142,238)
Effect of exchange rate changes on cash and cash equivalents
(188)
(774)
Net change in cash and cash equivalents
87,633
26,839
Cash and cash equivalents, beginning of period
191,756
106,181
Cash and cash equivalents, end of period
$ 279,389
$ 133,020
Revenues by Customer Type (Unaudited)
Three months ended
(in thousands)
9/30/2026
9/30/2025
$ Change
% Change
Department of War
$ 1,354,257
54.8 %
$ 1,179,626
51.5 %
$ 174,631
14.8 %
Intelligence Community
611,977
24.7
596,429
26.1
15,548
2.6
Federal civilian agencies
396,398
16.0
411,730
18.0
(15,332)
(3.7)
Commercial and other
111,965
4.5
99,838
4.4
12,127
12.1
Total
$ 2,474,597
100.0 %
$ 2,287,623
100.0 %
$ 186,974
8.2 %
Revenues by Contract Type (Unaudited)
Three months ended
(in thousands)
9/30/2026
9/30/2025
$ Change
% Change
Cost-plus-fee
$ 1,306,307
52.8 %
$ 1,382,630
60.5 %
$ (76,323)
(5.5) %
Fixed-price
821,826
33.2
611,493
26.7
210,333
34.4
Time-and-materials
346,464
14.0
293,500
12.8
52,964
18.0
Total
$ 2,474,597
100.0 %
$ 2,287,623
100.0 %
$ 186,974
8.2 %
Revenues by Prime or Subcontractor (Unaudited)
Three months ended
(in thousands)
9/30/2026
9/30/2025
$ Change
% Change
Prime Contractor
$ 2,209,244
89.3 %
$ 2,076,899
90.8 %
$ 132,345
6.4 %
Subcontractor
265,353
10.7
210,724
9.2
54,629
25.9
Total
$ 2,474,597
100.0 %
$ 2,287,623
100.0 %
$ 186,974
8.2 %
Revenues by Technology or Expertise (Unaudited)
Three months ended
(in thousands)
9/30/2026
9/30/2025
$ Change
% Change
Technology
$ 1,449,336
58.6 %
$ 1,300,732
56.9 %
$ 148,604
11.4 %
Expertise
1,025,261
41.4
986,891
43.1
38,370
3.9
Total
$ 2,474,597
100.0 %
$ 2,287,623
100.0 %
$ 186,974
8.2 %
Contract Awards (Unaudited)
Three months ended
(in thousands)
9/30/2026
9/30/2025
$ Change
% Change
Contract awards
$ 4,828,329
$ 4,998,684
$ (170,355)
(3.4) %
Note: Some percentages may vary slightly due to rounding.
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited)
Adjusted net income and adjusted diluted EPS are non-GAAP performance measures. We define adjusted net income and adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Three months ended
(in thousands, except per share data)
9/30/2026
9/30/2025
% Change
Net income, as reported
$ 130,367
$ 124,810
4.5 %
Intangible amortization expense
54,313
36,033
50.7
Tax effect of intangible amortization1
(13,723)
(9,104)
50.7
Adjusted net income
$ 170,957
$ 151,739
12.7 %
Three months ended
9/30/2026
9/30/2025
% Change
Diluted EPS, as reported
$ 5.84
$ 5.63
3.7 %
Intangible amortization expense
2.43
1.63
49.1
Tax effect of intangible amortization1
(0.61)
(0.41)
48.8
Adjusted diluted EPS
$ 7.66
$ 6.85
11.8 %
FY27 guidance range
(in millions, except per share data)
Low end
High end
Net income
$ 579
---
$ 599
Intangible amortization expense
215
---
215
Tax effect of intangible amortization1
(54)
---
(54)
Adjusted net income
$ 740
---
$ 760
FY27 guidance range
Low end
High end
Diluted EPS
$ 25.96
---
$ 26.86
Intangible amortization expense
9.64
---
9.64
Tax effect of intangible amortization1
(2.42)
---
(2.42)
Adjusted diluted EPS
$ 33.18
---
$ 34.08
(1) Calculation uses an assumed full year statutory tax rate of 25.3% on non-GAAP tax deductible adjustments for
September 30, 2026 and 2025.
Note: Numbers may not sum due to rounding.
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)
The Company views EBITDA and EBITDA margin, both of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company's performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider EBITDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets and amortization of intangible assets primarily recognized in business combinations, which we do not believe are indicative of our operating performance. EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Three months ended
(in thousands)
9/30/2026
9/30/2025
% Change
Net income, as reported
$ 130,367
$ 124,810
4.5 %
Plus:
Income taxes
43,921
41,292
6.4
Interest income and expense, net
73,240
46,173
58.6
Depreciation and amortization expense, including amounts within direct costs
81,300
56,338
44.3
EBITDA
$ 328,828
$ 268,613
22.4 %
Three months ended
(in thousands)
9/30/2026
9/30/2025
% Change
Revenues, as reported
$ 2,474,597
$ 2,287,623
8.2 %
EBITDA
328,828
268,613
22.4
EBITDA margin
13.3 %
11.7 %
Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited)
The Company defines net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI's MARPA for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $350.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines free cash flow as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe these measures allow investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.
Three months ended
(in thousands)
9/30/2026
9/30/2025
Net cash provided by operating activities, as reported
$ 161,314
$ 171,065
Cash provided by MARPA
(16,466)
(11,091)
Net cash provided by operating activities excluding MARPA
144,848
159,974
Capital expenditures
(11,359)
(17,014)
Free cash flow
$ 133,489
$ 142,960
FY27 guidance
(in millions)
Current
Prior
Net cash provided by operating activities
$ 1,015
$ 1,015
Cash provided by MARPA
—
—
Net cash provided by operating activities excluding MARPA
, /PRNewswire/ -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the third quarter 2026. Relative to the third quarter 2025, EPS increased by 6%, and revenue and operating income grew by 14% and 24%, respectively, with operating margin increasing to 30%. On an adjusted basis, EPS and operating income grew 24% and 25%, respectively, with the adjusted operating margin increasing to 31%. In addition, on October 20, 2026, SEI's Board of Directors approved an increase in the stock repurchase program by an additional $800 million, increasing the available authorization under the program to approximately $926 million.
Consolidated Overview
(In thousands, except
earnings per share)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2026
2025
%
2026
2025
%
U.S. GAAP Basis
Revenues
$662,043
$578,511
14 %
$1,925,843
$1,689,456
14 %
Income from operations
197,999
159,961
24 %
584,501
465,693
26 %
Operating margin
30 %
28 %
7 %
30 %
28 %
7 %
Net income attributable
to SEI Investments
168,258
164,204
2 %
538,403
542,804
(1) %
Diluted earnings per share
$1.38
$1.30
6 %
$4.37
$4.25
3 %
Non-GAAP Basis(1)
Adjusted income from
operations
$208,493
$166,896
25 %
$614,127
$480,054
28 %
Adjusted diluted earnings
per share
$1.64
$1.32
24 %
$4.73
$3.71
27 %
Adjusted operating margin
31 %
29 %
7 %
32 %
28 %
14 %
(1) See Non-GAAP Information and Reconciliations on pgs 11-12
"SEI's third-quarter results reinforce our confidence in the strategy and operating model we have put in place. Our growth is broad-based, our client relationships are becoming deeper and more strategic, and our year-to-date sales results have already surpassed the highest full-year total in SEI's history," said CEO Ryan Hicke.
"We are increasingly engaging with clients not as a vendor, but as a growth and transformation partner, bringing together our technology, operations, data, investment solutions, and expertise to help them achieve their most important business objectives. We remain focused on executing with discipline, investing where we can create differentiated value, and building a more scalable business that can deliver durable growth for our clients and shareholders."
Summary of Third-Quarter Results by Business Segment
(In thousands)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2026
2025
%
2026
2025
%
Investment Managers:
Revenues
$235,817
$207,050
14 %
$684,213
$594,165
15 %
Expenses
143,562
125,934
14 %
413,479
364,781
13 %
Operating Profit
92,255
81,116
14 %
270,734
229,384
18 %
Operating Margin
39 %
39 %
40 %
39 %
Private Banks:
Revenues
160,439
143,994
11 %
469,580
423,157
11 %
Expenses
128,275
120,763
6 %
373,526
354,236
5 %
Operating Profit
32,164
23,231
38 %
96,054
68,921
39 %
Operating Margin
20 %
16 %
20 %
16 %
Investment Advisors:
Revenues
185,378
147,465
26 %
532,970
421,234
27 %
Expenses
107,678
79,128
36 %
305,901
227,384
35 %
Non-controlling interests and
other, net (A)
2,034
—
NM*
4,732
—
NM
Operating Profit
75,666
68,337
11 %
222,337
193,850
15 %
Operating Margin
41 %
46 %
42 %
46 %
Institutional Investors:
Revenues
70,638
71,826
(2) %
211,856
209,675
1 %
Expenses
37,801
38,068
(1) %
111,764
109,795
2 %
Operating Profit
32,837
33,758
(3) %
100,092
99,880
— %
Operating Margin
46 %
47 %
47 %
48 %
Investments in New Businesses:
Revenues
9,771
8,176
20 %
27,224
41,225
(34) %
Expenses
10,588
11,863
(11) %
29,820
48,789
(39) %
Operating Loss
(817)
(3,687)
(78) %
(2,596)
(7,564)
(66) %
Totals:
Revenues
$662,043
$578,511
14 %
$1,925,843
$1,689,456
14 %
Expenses
427,904
375,756
14 %
1,234,490
1,104,985
12 %
Corporate Overhead Expenses
36,140
42,794
(16) %
106,852
118,778
(10) %
Income from operations (B)
$197,999
$159,961
24 %
$584,501
$465,693
26 %
Adjusted income from operations
$208,493
$166,896
25 %
$614,127
$480,054
28 %
(A) Primarily includes non-controlling interest and earnings from equity method investments.
(B) Excludes non-controlling interests and other, net
* Variances noted "NM" indicate the percent change is not meaningful.
Third-Quarter Business Highlights:
SEI delivered strong third-quarter results, with diluted EPS increasing 6% compared to the prior year. On an adjusted basis, diluted EPS increased 24% to $1.64, driven by revenue growth, margin expansion, and a 3% reduction in share count from SEI's share repurchase program. Third-quarter operating income included $6.4 million of additional incentive compensation expense associated with the strength of year-to-date performance and the current outlook for the remainder of the year. Third-quarter net sales events totaled $46.8 million, the second-highest quarterly level in SEI history, bringing year-to-date net sales events to $157.4 million. Investment Managers led the quarter with $32.0 million of net sales events, with contributions from both new client wins and expansions with existing clients. Private Banks generated $12.6 million of net sales events, reflecting continued demand across enterprise transformation initiatives, professional services, Data Cloud capabilities, and asset management solutions. Investment Advisors generated $2.4 million of net sales events, while Institutional Investors recorded negative $2.3 million of net sales events. Consolidated revenues and operating income increased by 14% and 24%, respectively, from Q3 2025. On an adjusted basis, operating income increased by 25% with adjusted operating margins increasing to 31%, up 260 basis points from Q3 2025. Private Banking revenue increased 11% and operating profit increased 38%, demonstrating strong operating leverage as the business continues to grow, including increased adoption of professional services. Investment Managers revenue and operating profit increased 14% as prior sales success continued to convert into revenue and demand for outsourcing solutions remained strong. Absent the elevated incentive compensation accrual, Investment Managers operating profit would have increased by 17% vs. the prior year. Investment Advisors revenue increased 26% and operating profit increased 11%, benefiting from Stratos and growth in the underlying Advisors business. Stratos contributed $23.3 million of revenue and $4.4 million of operating profit, including $7.3 million of acquired intangible amortization. Excluding Stratos, Advisors revenue increased 10% and operating profit increased 7%. SEI's integrated cash program contributed $20.8 million during the quarter, matching Q3 2025. Institutional Investors revenue declined 2% and operating profit declined 3%, reflecting prior client outflows. Ending assets under management decreased 0.1% to $606.4 billion from Q2 2026, as market values and net flows were little changed. Assets under administration, assets on platform, and assets under advisement increased 4% during the quarter, driven primarily by continued growth in Investment Managers, including funding from recently won mandates and additional client capital deployment. LSV assets declined 1% from Q2 as strong investment performance was offset by $5.3 billion of net outflows. Performance fees totaled $4.5 million during the quarter at SEI's share. SEI repurchased 2.0 million shares of common stock for $215.1 million at an average price of $105.24 per share. SEI ended the quarter with $399.8 million of cash and recently authorized an additional $800 million of share repurchase capacity. Other expenses consist of a $32.5 million one-time charge associated with the termination agreement with Stratos to purchase their Mexican based subsidiary, NSC. Earnings Conference Call
A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on
Wednesday, October 21, 2026. A live webcast of the call will be available on SEI's Investor Relations website at ir.seic.com/events-presentations/events, where a replay will also be posted following the call.
Participants may also access the call by telephone by dialing 877-407-8293 (in the U.S.) or +1 201-689-8349 (International). Please dial in at least 10 minutes prior to the start of the call.
About SEI®
SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of September 30, 2026, SEI manages, advises, or administers approximately $2.1 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning of the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," '"will," "can," "expect," "believe," "remain," and "continue" or "appear." Our forward-looking statements include our current expectations as to:
whether year-end performance will be of a level sufficient to justify incentive compensation awards consistent with increased accruals; the level of share buy-backs; the growth trajectory of our assets under administration and Private Banking business; the demand for outsourcing services and enterprise transformation initiatives; and when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue. You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. We undertake no obligation to update our forward-looking statements. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.
Investor contact:
Media contact:
Brad Burke
Alicia Rudd
SEI
SEI
+1610-676-5350
+1 610-676-3887
[email protected]
[email protected]
SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) (Unaudited)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2026
2025
2026
2025
Asset management, admin. and distribution fees
$531,417
$461,964
$1,542,883
$1,331,650
Information processing and software servicing fees
130,626
116,547
382,960
357,806
Total revenues
662,043
578,511
1,925,843
1,689,456
Subadvisory, distribution and other asset mgmt. costs
61,194
55,072
177,920
152,313
Software royalties and other information processing costs
9,878
9,434
29,487
27,706
Compensation, benefits and other personnel
220,069
203,739
634,223
594,097
Stock-based compensation
16,000
13,956
46,809
41,985
Consulting, outsourcing and professional fees
58,394
54,401
169,066
167,344
Data processing and computer related
49,388
41,569
141,123
122,689
Facilities, supplies and other costs
22,318
20,982
64,093
61,481
Amortization
19,684
11,912
57,175
33,071
Depreciation
7,119
7,485
21,446
23,077
Total expenses
464,044
418,550
1,341,342
1,223,763
Income from operations
197,999
159,961
584,501
465,693
Net gain from investments
1,206
1,992
4,387
4,244
Interest and dividend income
6,866
10,207
21,040
29,711
Interest expense
(606)
(109)
(1,641)
(386)
Gain on sale of business
—
—
—
94,412
Other (expense) income
(32,500)
4,922
(32,050)
9,422
Equity in earnings of unconsolidated affiliates
39,819
31,903
110,989
94,290
Net gain from consolidated variable interest entities
1,809
1,845
11,363
1,845
Income before income taxes
214,593
210,721
698,589
699,231
Income taxes
43,346
46,135
151,015
156,045
Net income
$171,247
$164,586
$547,574
$543,186
Less: Net income attributable to non-controlling interests
2,989
382
9,171
382
Net income attributable to SEI Investments Company
$168,258
$164,204
$538,403
$542,804
Basic earnings per common share
$1.42
$1.33
$4.48
$4.35
Shares used to calculate basic earnings per share
118,415
123,099
120,138
124,710
Diluted earnings per common share
$1.38
$1.30
$4.37
$4.25
Shares used to calculate diluted earnings per share
122,012
126,325
123,280
127,684
Dividends declared per common share
$—
$—
$0.52
$0.49
SEI INVESTMENTS COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands) (Unaudited)
September 30,
December 31,
2026
2025
Assets
Current Assets:
Cash and cash equivalents
$399,766
$399,804
Receivables from investment products
59,278
63,317
Receivables, net
851,279
709,748
Securities owned
25,750
33,777
Other current assets
75,611
66,691
Total Current Assets
1,411,684
1,273,337
Property and Equipment, net
153,496
150,434
Operating Lease Right-of-Use Assets
30,186
26,447
Capitalized Software, net
224,189
234,272
Investments
335,895
428,004
Assets of Consolidated Variable Interest Entities
223,785
183,994
Goodwill
392,205
354,989
Intangible assets, net
481,727
368,272
Other Assets, net
181,472
240,095
Total Assets
$3,434,639
$3,259,844
Liabilities, Redeemable Non-controlling Interests and Equity
Current Liabilities:
Accounts payable
$13,905
$5,404
Accrued liabilities
284,920
359,823
Current portion of long-term debt
5,754
—
Current portion of long-term operating lease liabilities
9,124
8,677
Deferred revenue
13,648
13,307
Total Current Liabilities
327,351
387,211
Long-term Debt
30,951
—
Liabilities of Consolidated Variable Interest Entities
136,536
108,504
Other Long-term Liabilities
62,503
60,353
Total Liabilities
557,341
556,068
Redeemable Non-controlling Interests
323,105
243,959
Equity:
Shareholders' Equity:
Common stock, $0.01 par value, 750,000 shares authorized; 118,942 and
122,232 shares issued and outstanding
1,189
1,222
Capital in excess of par value
1,758,970
1,678,787
Retained earnings
785,633
792,280
Accumulated other comprehensive loss, net
(33,229)
(24,505)
Total SEI Shareholders' Equity
2,512,563
2,447,784
Non-controlling interests
41,630
12,033
Total Equity
$2,554,193
$2,459,817
Total Liabilities, Redeemable Non-controlling Interests and Equity
$3,434,639
$3,259,844
SEI INVESTMENTS COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited)
For the Nine Months
Ended September 30,
2026
2025
Cash flows from operating activities:
Net income
$547,574
$543,186
Adjustments to reconcile net income to net cash provided by operating activities:
17,753
(61,922)
Net cash provided by operating activities
$565,327
$481,264
Net cash (used in) provided by investing activities
($32,087)
$40,497
Net cash used in financing activities
($512,509)
($516,474)
Effect of exchange rate changes on cash, cash equivalents
(6,103)
11,953
Net change in cash and cash equivalents and cash and cash equivalents held at
consolidated variable interest entities
14,628
17,240
Cash, cash equivalents and cash and cash equivalents held at consolidated variable
interest entities, beginning of period
470,595
840,193
Cash, cash equivalents and cash and cash equivalents held at consolidated variable
interest entities, end of period
$485,223
$857,433
Reconciliation of Cash, cash equivalents and cash and cash equivalents held at
consolidated variable interest entities to the Consolidated Balance Sheets:
September 30,
December 31,
2026
2025
Cash and cash equivalents
$399,766
$399,804
Cash and cash equivalents held at consolidated variable interest entities
85,457
70,791
Total cash and cash equivalents and cash and cash equivalents held at consolidated
variable interest entities
$485,223
$470,595
ENDING ASSET BALANCES
(In millions) (Unaudited)
Sep. 30
Dec. 31
Mar. 31
Jun. 30
Sep. 30
2025
2025
2026
2026
2026
Investment Managers:
Collective trust fund programs (A)
$237,964
$243,244
$243,900
$265,265
$267,693
Liquidity funds
418
579
536
464
493
Total assets under management
$238,382
$243,823
$244,436
$265,729
$268,186
Client assets under administration
1,204,843
1,239,606
1,284,781
1,351,307
1,400,810
Total assets
$1,443,225
$1,483,429
$1,529,217
$1,617,036
$1,668,996
Private Banks:
Equity and fixed-income programs
$28,408
$29,832
$29,753
$32,520
$32,949
Collective trust fund programs
3
3
4
4
4
Liquidity funds
2,802
2,099
2,178
1,709
1,646
Total assets under management
$31,213
$31,934
$31,935
$34,233
$34,599
Client assets under administration
8,902
9,115
9,143
9,405
9,784
Total assets
$40,115
$41,049
$41,078
$43,638
$44,383
Investment Advisors:
Equity and fixed-income programs
$85,245
$86,879
$86,612
$94,390
$94,470
Liquidity funds
3,391
3,561
3,485
3,391
3,306
Total Platform assets under management
$88,636
$90,440
$90,097
$97,781
$97,776
Platform-only assets
32,152
33,582
34,070
38,308
38,464
Platform-only assets-deposit program
2,165
2,461
2,294
2,358
2,326
Total Platform assets
$122,953
$126,483
$126,461
$138,447
$138,566
Institutional Investors:
Equity and fixed-income programs
$82,676
$84,254
$82,195
$86,690
$84,533
Liquidity funds
1,580
1,604
1,503
1,559
1,485
Total assets under management
$84,256
$85,858
$83,698
$88,249
$86,018
Client assets under advisement
6,564
3,598
3,549
3,790
3,776
Total assets
$90,820
$89,456
$87,247
$92,039
$89,794
Investments in New Businesses:
Equity and fixed-income programs
$2,999
$3,044
$3,087
$3,351
$3,289
Liquidity funds
244
316
252
236
404
Total assets under management
$3,243
$3,360
$3,339
$3,587
$3,693
Client assets under advisement
2,452
2,389
2,185
2,506
2,613
Total assets
$5,695
$5,749
$5,524
$6,093
$6,306
LSV Asset Management:
Equity and fixed-income programs (B)
$95,801
$99,196
$100,567
$117,146
$116,080
Stratos Wealth Holdings (E)
$—
$38,637
$38,291
$41,889
$41,655
Total:
Equity and fixed-income programs (C)
$295,129
$303,205
$302,214
$334,097
$331,321
Collective trust fund programs
237,967
243,247
243,904
265,269
267,697
Liquidity funds
8,435
8,159
7,954
7,359
7,334
Total assets under management
$541,531
$554,611
$554,072
$606,725
$606,352
Client assets under advisement
9,016
5,987
5,734
6,296
6,389
Client assets under administration (D)
1,213,745
1,248,721
1,293,924
1,360,712
1,410,594
Platform-only assets
34,317
36,043
36,364
40,666
40,790
Stratos Wealth Holdings
—
38,637
38,291
41,889
41,655
Total assets
$1,798,609
$1,883,999
$1,928,385
$2,056,288
$2,105,780
(A)
Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B)
Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of September 30, 2026).
(C)
Equity and fixed-income programs include $9.0 billion of assets in various asset allocation funds (as of September 30, 2026).
(D)
In addition to the assets presented, SEI also administers an additional $16.1 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2026).
(E)
Prior period asset balances have been revised to conform with the current period presentation.
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
3rd Qtr.
4th Qtr.
1st Qtr.
2nd Qtr.
3rd Qtr.
2025
2025
2026
2026
2026
Investment Managers:
Collective trust fund programs (A)
$231,088
$240,285
$248,851
$259,655
$267,834
Liquidity funds
385
492
565
506
569
Total assets under management
$231,473
$240,777
$249,416
$260,161
$268,403
Client assets under administration
1,174,961
1,225,392
1,280,581
1,332,630
1,386,909
Total assets
$1,406,434
$1,466,169
$1,529,997
$1,592,791
$1,655,312
Private Banks:
Equity and fixed-income programs
$28,051
$29,087
$30,696
$32,005
$33,201
Collective trust fund programs
3
3
3
4
4
Liquidity funds
2,834
2,371
2,150
1,717
1,680
Total assets under management
$30,888
$31,461
$32,849
$33,726
$34,885
Client assets under administration
8,665
8,977
9,282
9,455
9,602
Total assets
$39,553
$40,438
$42,131
$43,181
$44,487
Investment Advisors:
Equity and fixed-income programs
$82,735
$85,896
$88,403
$92,424
$95,439
Liquidity funds
3,378
3,418
3,518
3,338
3,292
Total Platform assets under management
$86,113
$89,314
$91,921
$95,762
$98,731
Platform-only assets
30,874
33,022
34,485
36,768
38,662
Platform-only assets-deposit program
2,136
2,135
2,309
2,273
2,297
Total Platform assets
$119,123
$124,471
$128,715
$134,803
$139,690
Institutional Investors:
Equity and fixed-income programs
$80,802
$83,739
$84,393
$85,302
$86,212
Liquidity funds
1,810
1,947
1,941
1,702
1,700
Total assets under management
$82,612
$85,686
$86,334
$87,004
$87,912
Client assets under advisement
6,274
5,413
3,657
3,703
3,852
Total assets
$88,886
$91,099
$89,991
$90,707
$91,764
Investments in New Businesses:
Equity and fixed-income programs
$2,934
$3,021
$3,106
$3,260
$3,317
Liquidity funds
255
288
319
258
407
Total assets under management
$3,189
$3,309
$3,425
$3,518
$3,724
Client assets under advisement
2,428
2,408
2,335
2,425
2,632
Total assets
$5,617
$5,717
$5,760
$5,943
$6,356
LSV Asset Management:
Equity and fixed-income programs (B)
$92,969
$97,304
$104,619
$115,862
$118,889
Stratos Wealth Holdings (E)
$—
$38,507
$39,317
$40,559
$41,902
Total:
Equity and fixed-income programs (C)
$287,491
$299,047
$311,217
$328,853
$337,058
Collective trust fund programs
231,091
240,288
248,854
259,659
267,838
Liquidity funds
8,662
8,516
8,493
7,521
7,648
Total assets under management
$527,244
$547,851
$568,564
$596,033
$612,544
Client assets under advisement
8,702
7,821
5,992
6,128
6,484
Client assets under administration (D)
1,183,626
1,234,369
1,289,863
1,342,085
1,396,511
Platform-only assets
33,010
35,157
36,794
39,041
40,959
Stratos Wealth Holdings
—
38,507
39,317
40,559
41,902
Total assets
$1,752,582
$1,863,705
$1,940,530
$2,023,846
$2,098,400
(A)
Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B)
Equity and fixed-income programs during third-quarter 2026 include $1.4 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee.
(C)
Equity and fixed-income programs include $8.9 billion of average assets in various asset allocation funds during third-quarter 2026.
(D)
In addition to the assets presented, SEI also administers an additional $15.2 billion of average assets in Funds of Funds assets during third-quarter 2026 on which SEI does not earn an administration fee.
(E)
Prior period average assets have been revised to conform with the current period presentation.
SALES EVENTS
(In thousands) (Unaudited)
Net Recurring Sales Events
3rd Qtr.
4th Qtr.
1st Qtr.
2nd Qtr.
3rd Qtr.
2025
2025
2026
2026
2026
Investment Processing-related Businesses:
Investment Managers
$27,460
$19,150
$46,848
$27,856
$28,606
Private Banks
(6,713)
5,670
1,571
4,207
5,598
Total Investment Processing-related Businesses
$20,747
$24,820
$48,419
$32,063
$34,204
Asset Management-related Businesses:
Private Banks-AMD
($1,674)
($1,567)
$1,983
$2,938
$2,462
Investment Advisors
1,230
(728)
7,044
(1,685)
2,440
Institutional Investors
(594)
(5,025)
(2,935)
(1,102)
(2,315)
Total Asset Management-related Businesses
($1,038)
($7,320)
$6,092
$151
$2,587
Newer Initiatives:
Investments in New Businesses
$1,208
$1,248
$2,631
$361
$1,811
Total Net Recurring Sales Events
$20,917
$18,748
$57,142
$32,575
$38,602
Professional Services Sales Events
3rd Qtr.
4th Qtr.
1st Qtr.
2nd Qtr.
3rd Qtr.
2025
2025
2026
2026
2026
Investment Processing-related Businesses:
Investment Managers
$2,465
$1,347
$3,672
$4,179
$3,406
Private Banks
7,087
23,409
4,950
5,934
4,514
Total Investment Processing-related Businesses
$9,552
$24,756
$8,622
$10,113
$7,920
Newer Initiatives:
Investments in New Businesses
$71
$95
$1,389
$768
$272
Total Professional Services Sales Events
$9,623
$24,851
$10,011
$10,881
$8,192
Total Sales Events
3rd Qtr.
4th Qtr.
1st Qtr.
2nd Qtr.
3rd Qtr.
2025
2025
2026
2026
2026
Investment Processing-related Businesses:
Investment Managers
$29,925
$20,497
$50,520
$32,035
$32,012
Private Banks
374
29,079
6,521
10,141
10,112
Total Investment Processing-related Businesses
$30,299
$49,576
$57,041
$42,176
$42,124
Asset Management-related Businesses:
Private Banks-AMD
($1,674)
($1,567)
$1,983
$2,938
$2,462
Investment Advisors
1,230
(728)
7,044
(1,685)
2,440
Institutional Investors
(594)
(5,025)
(2,935)
(1,102)
(2,315)
Total Asset Management-related Businesses
($1,038)
($7,320)
$6,092
$151
$2,587
Newer Initiatives:
Investments in New Businesses
$1,279
$1,343
$4,020
$1,129
$2,083
Total Sales Events
$30,540
$43,599
$67,153
$43,456
$46,794
Non-GAAP Information & Reconciliations
(In thousands, except per share data) (Unaudited)
We present certain non‑GAAP financial measures to supplement the consolidated financial statements prepared in accordance with GAAP. Management believes these measures provide useful information to investors by enhancing the understanding of our core operating performance and facilitating comparisons across reporting periods. These non‑GAAP measures are also used by our management to evaluate operating results, allocate resources, and assess performance against strategic objectives.
These non-GAAP financial measures should be viewed in addition to, and not as a substitute for, reported results prepared in accordance with GAAP.
The following schedules reconcile U.S. GAAP financial measures to non-GAAP financial measures for the three and nine months ended September 30, 2026 and 2025:
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2026
2025
2026
2025
Net income attributable to SEI Investments Company (U.S. GAAP basis)
$168,258
$164,204
$538,403
$542,804
Non-GAAP adjustments:
Acquisition-related:
Third party costs (A)
—
3,767
—
4,587
Intangible assets amortization & impairments (B)
7,379
3,168
21,070
9,774
Total acquisition-related
7,379
6,935
21,070
14,361
Gain on sale of asset/business (C)
—
—
—
(94,412)
Litigation settlements and insurance proceeds (D)
—
(4,350)
3,808
(8,850)
Other individually significant items (E)
32,500
—
32,500
—
Income tax effect (F)
(8,167)
(567)
(12,058)
19,787
Adjusted net income attributable to SEI Investments Company (non-
GAAP basis)
$199,970
$166,222
$583,723
$473,690
Diluted EPS (U.S. GAAP basis)
$1.38
$1.30
$4.37
$4.25
Adjusted diluted EPS (non-GAAP basis)
$1.64
$1.32
$4.73
$3.71
Diluted weighted average shares outstanding
122,012
126,325
123,280
127,684
Income from operations (U.S. GAAP Basis)
$197,999
$159,961
$584,501
$465,693
Operating margin (U.S. GAAP Basis)
30 %
28 %
30 %
28 %
Non-GAAP adjustments:
Acquisition-related:
Third party costs (A)
—
3,767
—
4,587
Intangible assets amortization & impairments (B)
10,494
3,168
29,626
9,774
Total acquisition-related
10,494
6,935
29,626
14,361
Adjusted income from operations (non-GAAP Basis)
$208,493
$166,896
$614,127
$480,054
Adjusted operating margin (non-GAAP basis)
31 %
29 %
32 %
28 %
(A)
This non-GAAP adjustment removes incremental and directly attributable costs incurred to execute acquisitions, such as third-party advisory, legal, accounting, valuation, and due diligence. For 2025, this non-GAAP adjustment consisted of the legal costs, advisory fees, and due diligence fees in relation to the Stratos acquisition. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(B)
This non-GAAP adjustment removes the impact of amortization expense associated with acquired intangible assets (e.g., customer relationships, technology, trade names). This non-GAAP adjustment removes only amortization recorded in the current period related to acquired intangibles from prior acquisitions. The non-GAAP adjustments in 2026 include the amortization of the acquired intangibles from the Stratos acquisition, which closed in December 2025. Management included the Stratos related amortization expense net of the 42.5% NCI adjustment for the adjusted EPS calculation. However, this adjustment is not inclusive of the NCI portion for adjusted operating margin. The associated revenues are not adjusted. Management believes adjusting for these charges helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(C)
This non-GAAP adjustment removes realized gains on the sale of assets owned or entities under our control, out of the normal course of business. In 2025, the adjustment consisted of the realized gain from the sale of Family Office Services (FOS). Management believes adjusting for these gains helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(D)
This non-GAAP adjustment removes individually significant litigation settlements and insurance proceeds. In 2026, this non-GAAP adjustment was related to litigation settlements. In 2025, this non-GAAP adjustment consisted of a $4.5M settlement related to a vendor matter and a $4.4M insurance recovery. Management included both of these transactions as non-GAAP adjustments since they were both out of the normal course of business. Management believes adjusting for these items helps the reader's ability to understand our core operating results and increases comparability quarter to quarter.
(E)
This non-GAAP adjustment removes other items that are individually significant and highly unusual. In 2026, this non-GAAP adjustment consisted of the amount recognized related to the mutually agreed Termination Agreement between the Company and Stratos with respect to the previously reported obligations to proceed with the closing of the purchase of the equity of a Mexican RIA owned by Stratos. Management believes this charge is outside the normal course of business and not indicative of ongoing operating performance. Excluding this item enhances comparability between periods and assists investors in evaluating SEI's core operating results.
(F)
Income tax effects are presented as a separate reconciling item (not netted within each adjustment). For performance measures, the tax effect reflects current and deferred tax expense commensurate with the adjusted measure of profitability. The methodology used (e.g., statutory rate, effective rate, or discrete item approach) is consistently applied. All of the above items use a systematic approach.
Akcionáři společnosti Integer schválili převzetí společnosti Integer společností Armstrong Parent; pro fúzi hlasovalo 99,95 % odevzdaných hlasů. Dokončení transakce se po získání regulačních schválení očekává do konce roku 2026.
PLANO, Texas, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE: ITGR) (“Integer” or the “Company”) and Armstrong Parent, Inc. (“Parent”) today announced that, in connection with Parent’s proposed acquisition of the Company (the “Transaction”) contemplated by their Agreement and Plan of Merger, dated as of August 2, 2026 (the “Merger Agreement”), the stockholders of the Company have voted in favor of (1) the proposal to adopt the Merger Agreement and the Merger (the “First Proposal”) and (2) the proposal to approve, on an advisory (non-binding) basis, the compensation that will or may be paid or become payable to Integer’s named executive officers that is based on or otherwise related to the Transaction as contemplated in the Merger Agreement (the “Second Proposal”) at a special meeting of stockholders held on October 21, 2026 (the “Special Meeting”).
At the Special Meeting, (1) approximately 99.95% of the shares voted on the First Proposal were cast in favor of the First Proposal, representing approximately 76.66% of the total outstanding shares of Integer common stock as of the record date, September 8, 2026 (the “Record Date”), and (2) the Second Proposal was approved by a majority of the votes cast at the Special Meeting. The Company will provide a full report of the voting results from the Special Meeting in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”).
The Transaction is anticipated to close by the end of 2026, subject to the satisfaction or waiver of customary closing conditions specified in the Merger Agreement, including the receipt of required regulatory approvals.
About Integer®
Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device contract development and manufacturing organizations (CDMOs) in the world, serving the cardio and vascular, neuromodulation, and cardiac rhythm management markets. As a strategic partner of choice, we advance the goals of our medical device customers through industry-leading engineering and manufacturing, with a relentless commitment to quality, service, and innovation. The Company’s brands include Greatbatch Medical® and Lake Region Medical®. Additional information is available at www.integer.net.
Contacts
Integer
Media Relations:
Misty Tippen [email protected]
469-536-6702
Some of the statements contained in this communication and other written and oral statements made from time to time by us and our representatives are not statements of historical or current fact. As such, they are “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, and these statements are subject to known and unknown risks, uncertainties and assumptions. Forward-looking statements include, but are not limited to, statements relating to: the completion of the Transaction on anticipated terms and timing, or at all, including obtaining regulatory approvals and satisfying other conditions to the completion of the Transaction; potential litigation relating to the Transaction that could be instituted against the parties to the Merger Agreement or their respective directors, managers, or officers, including the effects of any outcomes related thereto; our goals, plans, and strategic initiatives; long-term growth prospects; maximizing value for our stockholders; and other events, conditions or developments that will or may occur in the future; and timing of any of the foregoing. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “forecast,” “outlook,” “assume,” “potential” or “continue” or variations or the negative counterparts of these terms or other comparable terminology. These statements are only predictions and are no guarantee of future performance, and investors should not place undue reliance on forward-looking statements as predictive of future results. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary factors and to others contained throughout this communication.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the transactions contemplated by the Transaction. All such forward-looking statements are based upon current plans, estimates, expectations, opportunities and ambitions that are subject to risks, uncertainties, assumptions, and other important factors, many of which are beyond the control of the Company, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals; the occurrence of any event, change or other circumstances that could give rise to the termination of the Transaction; the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Transaction; the risk that any announcements relating to the Transaction could have adverse effects on the market price of the Company’s common stock; the risk that the Transaction and its announcement could have an adverse effect on the parties’ business relationships and business generally, including the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, regulatory and other stakeholder approvals and support; the risk of unexpected future capital expenditures; the risk of potential litigation relating to the Transaction that could be instituted against the Company or its directors and/or officers; the risk associated with third-party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the Transaction which are not waived or otherwise satisfactorily resolved; significant costs, or expenses incurred in connection with the Transaction; Parent’s ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the Transaction; certain restrictions contained in the Merger Agreement that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the risk of various events that could disrupt operations, including pandemics, epidemics or other public health crises or severe weather (such as droughts, floods, avalanches and earthquakes), cybersecurity attacks, security threats and governmental response to them, and technological changes; the risks of labor disputes, changes in labor costs and labor difficulties; and the risks resulting from other effects of industry, market, economic, legal or legislative, political or regulatory conditions outside of the Company’s control. All such factors are difficult to predict and are beyond our control, including those detailed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 23, 2026, the Company’s quarterly report on Form 10-Q for the fiscal quarter ended July 3, 2026, which was filed with the SEC on August 4, 2026 and other documents subsequently filed by the Company with the SEC. The Company’s forward-looking statements are based on assumptions that the Company believes to be reasonable but that may not prove to be accurate. Other unpredictable factors not discussed in this communication could also have material adverse effects on forward-looking statements. The Company does not assume an obligation to update any forward-looking statements, except as required by applicable law. These forward-looking statements speak only as of the date hereof.
Meta Platforms nehodlá v masivních investicích do vývoje umělé inteligence polevit, ba naopak. Vedle zveřejnění hospodářských výsledků za třetí čtvrtletí společnost zvýšila výhled kapitálových výdajů a oznámila novou třídu akcií bez hlasovacích práv, čímž si otevírá cestu k novému kapitálu.
Provozovatel Facebooku či Instagramu vygeneroval ve třetím čtvrtletí tržby ve výši 64,6 miliardy dolarů, což bylo meziročně o 26 procent více a zároveň o 1,3 mld. USD více než odhadoval trh. Upravený zisk na akcii činil 3,83 USD, což naopak bylo hluboko pod odhadem Wall Street (5,89 USD).
Společnost slabší EPS zdůvodnila tím, že do něj nezapočítala jednorázový poplatek 9,89 mld. USD související s dohodou s 52 generálními prokurátory ohledně soudního řízení o duševním zdraví teenagerů. Bez poplatku by provozní příjem činil 22,88 mld. USD, zatímco trh očekával 18,66 mld. USD.
Společnost ve své středeční výsledkové zprávě také uvedla, že kapitálové výdaje v letošním roce dosáhnou 135 až 145 miliard dolarů, což je navýšení spodní hranice předchozího výhledu z 130 miliard dolarů.
Vedle toho Meta oznámila vytvoření nové třídy akcií bez hlasovacích práv, která bude rozdělena stávajícím akcionářům formou akciové dividendy. Investoři obdrží jednu novou akcii za každou drženou akcii, což bude v praxi fungovat jako štěpení akcií (stock split) v poměru 2:1. Obchodování s novou třídou akcií by mělo začít v lednu. Meta uvedla, že nové akcie bude využívat k získávání kapitálu, odměňování zaměstnanců a případným akvizicím.
Tyto kroky naznačují, že společnost věří v návratnost svých masivních investic do AI, píše agentura Bloomberg a připomíná, že generální ředitel Mark Zuckerberg měl v minulých letech potíže přesvědčit investory, aby akceptovali rychle rostoucí náklady spojené s ambiciózními projekty v oblasti umělé inteligence. V posledních měsících však Meta podle všeho dosáhla v této oblasti významného pokroku, a to zejména díky úspěšnému vydání AI agenta Muse.
Součástí výsledkové zprávy byl také výhled na čtvrté čtvrtletí. Společnost očekává tržby v rozmezí 73 až 76 miliard dolarů, zatímco analytici oslovení v průměru počítali s 73,6 mld. USD. Výhled tržeb pro fiskální rok 2027 firma neposkytla.??
Akcie Mety reagovaly na výsledky v aftermarketu růstem přibližně o čtyři procenta.
EastGroup Properties ve třetím čtvrtletí zvýšila FFO na 2,45 USD na akcii, meziročně o 7,9 %, a zvedla čtvrtletní dividendu o 12,9 % na 1,75 USD na akcii.
Net Income Attributable to Common Stockholders of $1.46 Per Diluted Share for Third Quarter 2026 Compared to $1.26 Per Diluted Share for Third Quarter 2025 Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.45 Per Diluted Share for Third Quarter 2026 Compared to $2.27 Per Diluted Share for Third Quarter 2025, an Increase of 7.9% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 5.3% on a Straight-Line Basis and 7.1% on a Cash Basis for Third Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 97.3% Leased and 96.5% Occupied as of September 30, 2026; Average Month-End Occupancy of Operating Portfolio was 96.1% for Third Quarter 2026 as Compared to 95.7% for Third Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 36.3% on a Straight-Line Basis Entered into Forward Equity Sale Agreements for Approximately $486 Million at an Initial Weighted Average Forward Price of $202.06 Per Share Transferred a 100% Leased Development Project in Orlando Containing 113,000 Square Feet to the Operating Portfolio Started Construction of Four Development Projects and One Redevelopment Project Totaling 998,000 Square Feet with Projected Total Costs of Approximately $162 Million Signed 11 Leases on Active Development and First Generation Development Properties From July 1, 2026 through October 20, 2026, Totaling Approximately 503,000 Square Feet Acquired Two Operating Properties Containing 531,000 Square Feet and 107 Acres of Development Land for Approximately $164 Million Subsequent to Quarter-End, Acquired Three Operating Properties Containing 1,031,000 Square Feet and 25 Acres of Development Land for Approximately $262 Million Declared 187th Consecutive Quarterly Cash Dividend: Increased the Dividend by $0.20 Per Share (12.9%) to $1.75 Per Share , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us", "our" or "EastGroup") announced today the results of its operations for the three and nine months ended September 30, 2026.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "The team and the portfolio performed ahead of expectations this quarter and so far this year. The leasing environment has been much more stable than headlines would lead one to expect. This activity is exciting as we begin to turn the page into 2027. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
Reid Dunbar, President, added, "Continued leasing momentum gave us the confidence to raise our development starts again, to $390 million for the year, and attractive opportunities allowed us to increase our acquisition guidance to $360 million. Supported by our strong balance sheet, we remain focused on deploying capital with discipline and creating long-term value for our shareholders."
EARNINGS PER SHARE
Three Months Ended September 30, 2026
On a diluted per share basis, earnings per common share ("EPS") were $1.46 for the three months ended September 30, 2026, compared to $1.26 for the same period of 2025. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $147,890,000 ($2.75 per diluted share) for the three months ended September 30, 2026, as compared to $134,374,000 ($2.52 per diluted share) for the same period of 2025, which was an increase of $0.23 per diluted share. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the three months ended September 30, 2026. There were no land sales during the three months ended September 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $58,206,000 ($1.08 per diluted share) for the three months ended September 30, 2026, as compared to $54,131,000 ($1.02 per diluted share) for the same period of 2025, which was an increase of $0.06 per diluted share. Interest expense was $9,617,000 ($0.18 per diluted share) for the three months ended September 30, 2026, as compared to $7,685,000 ($0.14 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. Weighted average shares outstanding increased by 580,000 shares on a diluted basis for the three months ended September 30, 2026, as compared to the same period of 2025. Nine Months Ended September 30, 2026
EPS for the nine months ended September 30, 2026 were $4.63 per diluted share, as compared to $3.60 per diluted share for the same period of 2025. The increase in EPS was primarily due to the following:
PNOI was $430,826,000 ($8.02 per diluted share) for the nine months ended September 30, 2026, as compared to $389,736,000 ($7.41 per diluted share) for the same period of 2025, which was an increase of $0.61 per diluted share. EastGroup recognized gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the nine months ended September 30, 2026. There were no sales during the nine months ended September 30, 2025. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the nine months ended September 30, 2026. There were no land sales during the nine months ended September 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $170,109,000 ($3.17 per diluted share) for the nine months ended September 30, 2026, as compared to $159,663,000 ($3.03 per diluted share) for the same period of 2025, which was an increase of $0.14 per diluted share. Interest expense was $27,686,000 ($0.52 per diluted share) for the nine months ended September 30, 2026, as compared to $23,400,000 ($0.44 per diluted share) for the same period of 2025, which was an increase of $0.08 per diluted share. Weighted average shares outstanding increased by 1,100,000 shares on a diluted basis for the nine months ended September 30, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended September 30, 2026
For the three months ended September 30, 2026, both funds from operations attributable to common stockholders ("FFO") and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $2.45 per diluted share compared to $2.27 per diluted share during the same period of 2025, an increase of 7.9%.
PNOI increased by $13,516,000, or 10.1%, during the three months ended September 30, 2026, compared to the same period of 2025. PNOI increased $6,809,000 due to same property operations (based on the same property pool), $4,156,000 due to newly developed and value-add properties, and $3,213,000 due to 2025 and 2026 acquisitions. PNOI decreased $634,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 5.3% on a straight-line basis for the three months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 7.1%. Same property average occupancy was 96.9% for the three months ended September 30, 2026, compared to 96.7% for the same period of 2025. The same property average rental rate was $9.46 for the three months ended September 30, 2026, compared to $8.99 per square foot for the same period of 2025.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended September 30, 2026 (representing 4.6% of the operating portfolio's square footage) increased an average of 36.3%.
Nine Months Ended September 30, 2026
FFO for the nine months ended September 30, 2026, were $7.15 per diluted share compared to $6.64 per diluted share during the same period of 2025, an increase of 7.7%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $7.11 per diluted share for the nine months ended September 30, 2026, compared to $6.61 per diluted share for the same period of 2025, an increase of 7.6%.
PNOI increased by $41,090,000, or 10.5%, during the nine months ended September 30, 2026, compared to the same period of 2025. PNOI increased $23,236,000 due to same property operations (based on the same property pool), $10,426,000 due to newly developed and value-add properties, and $8,836,000 due to 2025 and 2026 acquisitions. PNOI decreased $1,677,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 6.3% on a straight-line basis for the nine months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.2%. Same property average occupancy was 97.0% for the nine months ended September 30, 2026, compared to 96.4% for the same period of 2025. The same property average rental rate was $9.36 per square foot for the nine months ended September 30, 2026, compared to $8.81 per square foot for the same period of 2025.
On a straight-line basis, rental rates on new and renewal leases signed during the nine months ended September 30, 2026 (representing 12.3% of the operating portfolio's square footage) increased an average of 35.6%.
The same property pool for the three and nine months ended September 30, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through September 30, 2026; this pool is comprised of properties containing 58,047,000 square feet. Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026). The same property average rental rate calculated on a straight-line basis represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026).
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
As previously announced, in July 2026, EastGroup acquired Airgate Mesa Corporate Center in Phoenix for $27,688,000. The 143,000 square foot industrial building was developed in 2022 and is 100% leased to a single tenant. Also in July 2026, as previously announced, the Company acquired Harris Ridge Business Center in Austin for $82,268,000. The property is comprised of 5 buildings containing 388,000 square feet and is currently 95% leased to 10 tenants.
In August 2026, as previously announced, the Company acquired 69.5 acres of development land in the Northeast Dallas submarket for $38,049,000. The land, known as Frisco Park 121 Phase 2 Land, is adjacent to the Company's previously acquired Frisco Park 121 Land and expands the existing development plan from 4 buildings totaling approximately 350,000 square feet to 11 buildings totaling approximately 1,000,000 square feet.
Also as previously announced, in September 2026, EastGroup acquired 30.3 acres of development land, known as Crossroads Logistics Park Phase 2 Land, for $13,266,000. This land acquisition expands EastGroup's existing park located in the East Tampa submarket, increasing the existing development plan from three buildings totaling approximately 500,000 square feet to five buildings totaling approximately 850,000 square feet.
Also, in September 2026, the Company acquired 7.5 acres of development land in the space coast market in Melbourne, FL, known as Crane Creek Commerce Center Land, for $2,781,000. This site is expected to accommodate the future development of a 69,000 square foot building.
Subsequent to September 30, 2026, EastGroup closed on the acquisition of a property in the Northeast submarket of Dallas for approximately $89,000,000. The property, which was constructed in 2025, includes three business distribution buildings containing 375,000 square feet, which are currently 91% leased to three tenants.
Also in October 2026, the Company closed on the acquisition of a business distribution building containing 202,000 square feet in the Dallas-Fort Worth International Airport submarket for approximately $30,000,000. The building, subject to a ground lease, was built in 2023 and is 100% leased to a single tenant.
Also subsequent to September 30, 2026, EastGroup closed on the acquisition of three business distribution buildings in the North Denver submarket for approximately $95,000,000. The buildings, which contain 454,000 square feet, were constructed in 2025 and are 100% leased to four tenants.
Also in October 2026, the Company acquired 24.9 acres of development land in Miami for approximately $48,000,000. This site is expected to accommodate the future development of two buildings containing approximately 371,000 square feet.
As previously announced, in July 2026, the Company sold a 6.9 acre parcel of land in Miami for $14,250,000. A gain of $4,709,000 was recognized during the three months ended September 30, 2026; this gain is excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the third quarter of 2026, EastGroup began construction of four development projects and one redevelopment project totaling 998,000 square feet, with projected total costs of $162,200,000. The development and redevelopment projects started during the nine months ended September 30, 2026 are detailed in the table below:
Development and Redevelopment Projects Started
During the Nine Months Ended September 30, 2026
Location
Size
Anticipated
Transfer Date
Projected
Total Costs
(Square feet)
(In thousands)
Country Club 5 Expansion (1)
Tucson, AZ
101,000
05/2027
$
9,800
Crossroads 3
Tampa, FL
156,000
10/2027
26,900
Oak Creek 1 (2)
Tampa, FL
222,000
10/2027
4,200
Grand West Crossing 3 & 4
Houston, TX
128,000
02/2028
18,900
World Houston 48
Houston, TX
191,000
03/2028
18,800
Skyway 3
Charlotte, NC
156,000
04/2028
20,400
Brightstar 100
Atlanta, GA
196,000
05/2028
21,700
Miramar Business Center
San Diego, CA
60,000
05/2028
53,100
Schertz Summit Park 1 & 2
San Antonio, TX
202,000
07/2028
27,700
Basswood 6 & 7
Fort Worth, TX
294,000
09/2028
40,600
Bell Creek 1 & 2
Tampa, FL
226,000
10/2028
42,600
Total Development Projects Started
1,932,000
$
284,700
(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.
(2) Represents a redevelopment project.
Subsequent to September 30, 2026, the Company began construction of Gateway Interchange C, D & E in Phoenix, which is anticipated to accommodate the future development of three buildings containing approximately 295,000 square feet, with projected total costs of $54,300,000.
At September 30, 2026, EastGroup's development and value-add program consisted of 21 projects (4,061,000 square feet) in 14 markets. The projects, which were collectively 25% leased as of October 20, 2026, have a projected total cost of $636,700,000, of which $251,460,000 remained to be invested as of September 30, 2026.
During the third quarter of 2026, EastGroup transferred one project in Orlando to the operating portfolio. The Company transfers projects to the operating portfolio at the earlier of 90% occupancy or one year after completion. The project contains 113,000 square feet and was 100% leased as of October 20, 2026.
The development projects transferred to the operating portfolio during the nine months ended September 30, 2026 are detailed in the table below:
Development, Redevelopment and Value-
Add Properties Transferred to the
Operating Portfolio During the Nine
Months Ended September 30, 2026
Location
Size
Transfer Date
Cumulative Cost
as of 9/30/26
Percent Leased
as of 10/20/26
(Square feet)
(In thousands)
Denton 35 Exchange 1 & 2
Dallas, TX
244,000
02/2026
$
33,604
100
%
Skyway 1 & 2
Charlotte, NC
318,000
03/2026
38,781
79
%
Grand West Crossing 2
Houston, TX
97,000
04/2026
11,854
100
%
Texas Avenue 1 & 2
Austin, TX
129,000
04/2026
21,772
83
%
World Houston 46
Houston, TX
181,000
04/2026
17,047
100
%
Dominguez (1)
Los Angeles, CA
262,000
06/2026
7,867
100
%
Horizon West 9
Orlando, FL
113,000
08/2026
14,819
100
%
Total Projects Transferred
1,344,000
$
145,744
94
%
Projected Stabilized Yield (2)
9.4 %
(1) Represents a redevelopment project.
(2) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs. The projected stabilized yield excluding the redevelopment project is 7.7%.
DIVIDENDS
EastGroup declared a cash dividend of $1.75 per share of common stock in the third quarter of 2026, which represented a 12.9% increase over the previous quarter's dividend. The third quarter dividend, which was paid on October 15, 2026, was the Company's 187th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 34 consecutive years and has increased it 31 years over that period, including increases in each of the last 15 years. The annualized dividend rate of $7.00 per share represents a dividend yield of 3.5% based on the closing stock price of $201.25 on October 20, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.6% at September 30, 2026. The Company's interest and fixed charge coverage ratio was 14.7x and 14.9x for the three and nine months ended September 30, 2026, respectively. The Company's annualized ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.2x and 3.3x for the three and nine months ended September 30, 2026, respectively. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
During the three months ended September 30, 2026, the Company entered into forward equity sale agreements with respect to 2,402,931 shares of common stock with an initial weighted average forward price of $202.06 per share totaling approximately $485,531,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of October 20, 2026, EastGroup had 3,443,388 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from February 2027 to February 2028, for anticipated net sales of approximately $685,234,000, based on a weighted average forward price of $199.00 per share.
Subsequent to September 30, 2026, EastGroup repaid a $100,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.98%.
OUTLOOK FOR 2026
We now estimate EPS for 2026 to be in the range of $5.99 to $6.05 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.62 to $9.68. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2026:
Low Range
High Range
Q4 2026
Y/E 2026
Q4 2026
Y/E 2026
(In thousands, except per share data)
Net income attributable to common stockholders
$
74,230
322,757
77,464
325,991
Depreciation and amortization
60,019
230,220
60,019
230,220
Gain on sales of real estate investments and non-operating
real estate
—
(34,783)
—
(34,783)
Funds from operations attributable to common stockholders*
$
134,249
518,194
137,483
521,428
Weighted average shares outstanding — Diluted
54,394
53,892
54,394
53,892
Per share data (diluted):
Net income attributable to common stockholders
$
1.36
5.99
1.42
6.05
Funds from operations attributable to common stockholders*
2.47
9.62
2.53
9.68
*This is a non-GAAP financial measure. Please refer to Definitions.
The following assumptions were used for the mid-point:
Metrics
Revised Guidance
for Year 2026
July Earnings
Release Guidance
for Year 2026
Actual for Year
2025
FFO per share for the year
(see Q4 projections in the table above)
$9.62 - $9.68
$9.52 - $9.66
$8.98
FFO per share increase over prior year
7.5 %
6.8 %
7.5 %
FFO per share, excluding gain on involuntary conversion and
business interruption claims
$9.58 - $9.64
$9.48 - $9.62
$8.95
FFO per share increase over prior year, excluding gain on
involuntary conversion and business interruption claims
7.4 %
6.7 %
7.7 %
Same PNOI growth: cash basis (1)
7.2% - 7.8% (2)
6.3% - 7.3% (2)
6.7 %
Average month-end occupancy — Operating portfolio
95.6% - 96.2% (3)
95.3% - 96.1%
95.9 %
Average month-end occupancy — Same property pool
96.7% - 97.3% (2)
96.3% - 97.1% (2)
96.5 %
Development starts:
Square feet
2.5 million
2.2 million
1.4 million
Projected total investment
$390 million
$325 million
$179 million
Operating property acquisitions
$360 million
$215 million
$143 million
Operating property dispositions
(Potential gains or losses on dispositions are not included in the projections)
$44 million
$75 million
$4 million
Gross capital proceeds (4)
$625 million (5)
$300 million
$517 million
General and administrative expense
$26.8 million
$26.7 million
$24.0 million
(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.
(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,047,000 square feet.
(3) Represents estimated average month-end operating portfolio occupancy from January-December 2026.
(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on unsecured bank credit facilities.
(5) Assumes issuance of approximately 3,000,000 shares under the continuous common equity program, including direct common stock issuance and settlement of outstanding forward equity agreements, during the three months ended December 31, 2026.
DEFINITIONS
Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.
PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup may refer to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land, buildings and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, additional rent charged when a tenant remains in occupancy after lease expiration, and amounts paid by tenants for operating expenses above the levels established in their leases. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or included in FFO are significant components in understanding and assessing the Company's financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its annualized EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its third quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, October 22, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, October 22, 2026. The telephone replay will be available through Thursday, October 29, 2026, and can be accessed by dialing 1-888-660-6345 (access code 87577#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 68.3 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the Company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends are subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:
international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or an inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of armed conflicts in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.
The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.
CONTACT
[email protected]
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
REVENUES
Income from real estate operations
$
199,400
182,089
582,926
531,989
Other revenue
37
47
98
1,882
199,437
182,136
583,024
533,871
EXPENSES
Expenses from real estate operations
51,818
48,004
153,025
143,127
Depreciation and amortization
58,206
54,131
170,109
159,663
General and administrative
6,251
5,607
21,074
18,851
Indirect leasing costs
251
199
707
633
116,526
107,941
344,915
322,274
OTHER INCOME (EXPENSE)
Interest expense
(9,617)
(7,685)
(27,686)
(23,400)
Gain on sales of real estate investments
—
—
30,074
—
Other income
5,086
447
8,030
1,510
NET INCOME
78,380
66,957
248,527
189,707
Net income attributable to noncontrolling interest in joint ventures
—
(14)
—
(42)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
78,380
66,943
248,527
189,665
Other comprehensive income (loss) — Interest rate swaps
9,527
(2,139)
14,932
(13,202)
TOTAL COMPREHENSIVE INCOME
$
87,907
64,804
263,459
176,463
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.64
3.61
Weighted average shares outstanding — Basic
53,675
53,159
53,599
52,544
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.63
3.60
Weighted average shares outstanding — Diluted
53,844
53,264
53,724
52,624
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS
$
78,380
66,943
248,527
189,665
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
Depreciation and amortization attributable to noncontrolling interest
—
(2)
(1)
(4)
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON
STOCKHOLDERS*
131,908
121,103
383,945
349,417
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN
ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION
CLAIMS*
$
131,908
121,103
381,995
347,654
NET INCOME
$
78,380
66,957
248,527
189,707
Interest expense (1)
9,617
7,685
27,686
23,400
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION ("EBITDA")
146,234
128,804
446,415
372,863
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
EBITDA FOR REAL ESTATE ("EBITDAre")*
$
141,525
128,804
411,632
372,863
Debt
$
1,806,556
1,479,819
1,806,556
1,479,819
Debt-to-EBITDAre ratio* (Annualized)
3.2
2.9
3.3
3.0
EBITDAre*
$
141,525
128,804
411,632
372,863
Interest expense (1)
9,617
7,685
27,686
23,400
Interest and fixed charge coverage ratio*
14.7
16.8
14.9
15.9
DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES,
INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.63
3.60
FFO attributable to common stockholders*
$
2.45
2.27
7.15
6.64
FFO attributable to common stockholders, excluding gain on involuntary conversion
and business interruption claims*
$
2.45
2.27
7.11
6.61
Weighted average shares outstanding for EPS and FFO purposes — Diluted
53,844
53,264
53,724
52,624
(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
NET INCOME
$
78,380
66,957
248,527
189,707
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
Interest income
(100)
(174)
(539)
(683)
Other
(37)
(47)
(98)
(119)
Indirect leasing costs
251
199
707
633
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
Interest expense (1)
9,617
7,685
27,686
23,400
General and administrative expense (2)
6,251
5,607
21,074
18,851
Noncontrolling interest in PNOI of consolidated joint ventures
—
(15)
—
(46)
PROPERTY NET OPERATING INCOME ("PNOI")*
147,890
134,374
430,826
389,736
PNOI from 2025 and 2026 acquisitions
(4,253)
(1,040)
(9,876)
(1,040)
PNOI from 2025 and 2026 development and value-add properties
(7,803)
(3,647)
(19,142)
(8,716)
PNOI from 2025 and 2026 operating property dispositions
—
(634)
(363)
(2,040)
Other PNOI
244
216
660
929
SAME PNOI (Straight-Line Basis)*
136,078
129,269
402,105
378,869
Lease termination fee income from same properties
(69)
(101)
(164)
(833)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS
(Straight-Line Basis)*
136,009
129,168
401,941
378,036
Straight-line rent adjustments for same properties
(1,702)
(3,489)
(4,537)
(9,875)
Acquired leases — Market rent adjustment amortization for same properties
(1,287)
(1,466)
(3,979)
(4,553)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash
Basis)*
$
133,020
124,213
393,425
363,608
(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.
(2) Net of capitalized development costs of $2,644 and $1,716 for the three months ended September 30, 2026 and 2025, respectively; and $6,768 and $5,387 for the nine months ended September 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
, /PRNewswire/ -- Aamir Paul, Chief Executive Officer of Regal Rexnord Corporation (NYSE: RRX), announced that the Board of Directors, at its regular quarterly meeting held on October 21, 2026, declared a dividend of $0.35 per share. The dividend is payable on January 14, 2027, to shareholders of record at the close of business on December 31, 2026. The company has paid a dividend every quarter since January 1961.
About Regal Rexnord
Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.
The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace & defense, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.
Regal Rexnord is comprised of three operating segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.
SAN JOSE, Calif., Oct. 21, 2026 (GLOBE NEWSWIRE) -- QuantumScape Corporation (NASDAQ: QS), a global leader in next-generation solid-state lithium-metal battery technology, today announced its business and financial results for the third quarter of 2026, which ended September 30.
The company posted a letter to shareholders on its Investor Relations website, ir.quantumscape.com, that details third-quarter financial results and provides a business update.
QuantumScape will host a live webcast today at 2 p.m. Pacific Time (5 p.m. Eastern Time), accessible via its IR Events page.
An archive of the webcast will be available shortly after the call for 12 months.
About QuantumScape Corporation
QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.
QuantumScape plánuje ve spolupráci s Muehlbauer Group výrobní linku na bateriové články o kapacitě 100 MWh pro datová centra pro AI, letectví a obranu. Zahájení výroby je plánováno na rok 2028.
SAN JOSE, Calif., Oct. 21, 2026 (GLOBE NEWSWIRE) -- QuantumScape Corporation (NASDAQ: QS), a global leader in solid-state lithium-metal battery technology, today announced a planned 100 megawatt-hour (MWh) capacity cell production line to meet demand for solid-state batteries from markets including AI data centers, aerospace and defense. To develop this line, QS has partnered with Muehlbauer Group, a leading German automation and manufacturing technology company, as an ecosystem provider of cell assembly equipment.
QS is currently demonstrating scalable production of solid-state batteries using its highly automated Eagle Line pilot facility in San Jose. Muehlbauer evaluated the Eagle Line processes and developed design enhancements to bring the technology to mass production; engineering work on higher-throughput processes and equipment for the new line is underway. Start of cell production is targeted for 2028.
“We are excited to welcome Muehlbauer to the QS ecosystem,” said Dr. Siva Sivaram, president and CEO of QS. “Muehlbauer is an experienced and respected global player in manufacturing automation and battery equipment, and they’ve shown top-tier system integration capability, impressive engineering depth, and the scalability mindset necessary to bring our groundbreaking technology to the gigawatt-hour scale. They join a world-class ecosystem of technology partners as we bring solid-state batteries into mass production.”
“The Eagle Line proved to us that QuantumScape’s solid-state technology is ready to scale to the next level,” said Josef Markus Mühlbauer, CEO of Muehlbauer Group. “We have been working on-site with QS in San Jose to develop a scale-up plan built on the foundation of the Eagle Line. With decades of experience in turning innovative technologies into scalable production processes, we are proud to be a preferred partner within QuantumScape’s ecosystem and to contribute our expertise to the mission of revolutionizing energy storage and enabling a more sustainable future.”
About QuantumScape Corporation
QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation solid-state lithium-metal battery technology is designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.
About Muehlbauer Group
With around 4,500 employees at 40 locations worldwide and 45 years of experience, the Muehlbauer Group has developed into one of the most advanced suppliers of complete production solutions. The company has achieved a leading position in the semiconductor industry with its unique die sorting technology and serves 90% of worldwide demand for RFID. More than 90,000 machines and systems have already been installed worldwide, and the Group specialises in high-precision, high-speed assembly systems, even in cleanroom environments.
For more information, visit www.muehlbauer.de.
Forward-Looking Statements
Certain information in this press release may be considered “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s expectations for its partnership with Muehlbauer Group, the anticipated benefits and contributions of Muehlbauer under that partnership, the design, development, build-out and timing of a planned 100 MWh cell production line, including engineering of higher-throughput processes and equipment and the targeted 2028 start of production, the scalability of the Eagle Line processes, the progression to mass production and gigawatt-hour scale production, the commercialization and scaling of its solid-state lithium-metal battery technology, and the application of its technology to AI data center, aerospace, defense and other markets. These forward-looking statements are based on management’s current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements due to various risks, including the successful development and commercialization of our solid-state battery technology, achieving technical and financial milestones, building out of high-volume processes and otherwise scaling production, the performance of third-party partners and suppliers, achieving the performance, quality, consistency, reliability, safety, cost and throughput required for commercial production and sale, changes in financial conditions, market demand for EVs, AI data center, aerospace and defense, and other energy storage applications, retaining key personnel, competition, regulatory changes, broader economic conditions, and other factors, including those discussed in the section titled “Risk Factors” in our Annual Report and Quarterly Reports and other documents filed with the Securities and Exchange Commission from time to time. Except as otherwise required by applicable law, the company disclaims any duty to update any forward-looking statements.
J.B. Hunt vyplatí čtvrtletní dividendu ve výši 0,45 USD na akcii; nárok na dividendu mají akcionáři evidovaní k 6. listopadu 2026, výplata proběhne 20. listopadu 2026.
LOWELL, Ark.--(BUSINESS WIRE)--J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) announced today that its Board of Directors has declared a regular quarterly dividend on its common stock of $ 0.45 (forty five cents) per common share. The dividend is payable to stockholders of record on November 6, 2026 and will be paid on November 20, 2026.
About J.B. Hunt
J.B. Hunt’s vision is to create the most efficient transportation network in North America. The company’s industry-leading solutions and mode-neutral approach generate value for customers by eliminating waste, reducing costs and enhancing supply chain visibility. Powered by one of the largest company-owned fleets in the country and third-party capacity through its J.B. Hunt 360°® digital freight marketplace, J.B. Hunt can meet the unique shipping needs of any business, from first mile to final delivery, and every shipment in-between. Through disciplined investments in its people, technology and capacity, J.B. Hunt is delivering exceptional value and service that enable long-term growth for the company and its stakeholders.
J.B. Hunt Transport Services Inc. is an S&P 500 company and a component of the Dow Jones Transportation Average. Its stock trades on NASDAQ under the ticker symbol JBHT. J.B. Hunt Transport Inc. is a wholly owned subsidiary of JBHT. The company’s services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, transload and more. For more information, visit www.jbhunt.com.
Station Casinos uzavřela navýšený úvěr Term Loan B ve výši 500 milionů USD s úrokovou sazbou Term SOFR + 2,00 %. Výnosy z úvěru použije především na splacení revolvingového úvěru.
, /PRNewswire/ -- Station Casinos LLC (the "Company" or "Station Casinos"), a consolidated subsidiary of Red Rock Resorts, Inc. (NASDAQ: RRR), announced today that it has entered into an incremental joinder agreement to its senior secured credit agreement providing for $500 million in aggregate principal amount of incremental term B loans (the "Incremental Term B Loans"). The Incremental Term B Loans are fungible with, and have the same terms as, the Company's existing term B loans outstanding under its credit agreement, including as to maturity. The Incremental Term B Loans bear interest at Term SOFR plus 2.00% per annum. The Company intends to use the proceeds from the Incremental Term B Loans to repay borrowings outstanding under its revolving credit facility, pay related fees and expenses and for general corporate purposes.
FORWARD-LOOKING STATEMENTS
Statements contained in this news release that state the Company's or management's intentions, expectations or predictions of the future are forward-looking statements, including statements regarding the intended use of proceeds from the Incremental Term B Loans. Actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially is contained from time to time in the reports filed by Red Rock Resorts, Inc., the Company's parent company, with the Securities and Exchange Commission, including but not limited to Red Rock Resorts, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2025. The Company and Red Rock Resorts, Inc. disclaim any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
ABOUT RED ROCK RESORTS
Red Rock Resorts, Inc. is a holding company that owns an indirect equity interest in and manages Station Casinos. Station Casinos is the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Station Casinos' properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Durango Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem, Wildfire Lake Mead, Wildfire on Fremont and Seventy Six by Station Casinos (North Lamb, Aliante, Union Village, Tropicana, Fort Apache, Park Highlands, and Silverado Ranch). Station Casinos also owns a 50% interest in Barley's Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.
INVESTORS:
Stephen L. Cootey
[email protected]
(702) 495-4214
MEDIA:
Michael J. Britt
[email protected]
(702) 495-3693
Akcie CoreWeave od 12. do 16. října ztratily přibližně 25 %, zatímco výnos jejích dluhopisů na sekundárním trhu vzrostl na více než 15 %. Jensen Huang ze společnosti Nvidia však zůstává optimistický.
CoreWeave (CRWV -0.63%) stock has had some trouble lately. From Oct. 12 to Oct. 16, it lost about 25% of its value -- not a pretty sell-off. CoreWeave's sell-off is due to spiking debt yields, which indicates that the secondary bond market doesn't think CoreWeave will be able to pay these obligations back. However, a major CoreWeave investor doesn't think this is a problem.
The investor? None other than Nvidia CEO Jensen Huang. Nvidia has been a major CoreWeave investor, and as of the second quarter, it held about 47 million shares. That's about 10% of CoreWeave's total float, so it's no small position. Huang isn't as concerned as some may think, as he told investors at an unrelated event that he's "optimistic, and their (CoreWeave's) cost of capital is actually decreasing."
So, the market thinks one thing, and the CEO of the largest company in the world, who is a CoreWeave investor and supplier, thinks another. Who is right?
Image source: Nvidia Corporation.
Spiking yields are a concern
This sell-off is due to secondary yield on CoreWeave's debt spiking to 15%. Most individual investors don't dip their toes into corporate debt, so this area may be a bit unfamiliar.
CoreWeave is a cloud computing provider, which means it provides AI-focused cloud computing services. It has several big-name clients, including Microsoft and Meta Platforms, and to serve these customers, it has to build a lot of computing power. Data centers and the equipment that goes inside them aren't cheap, and CoreWeave doesn't have a different core business to support them as the major cloud computing players do.
So, CoreWeave has to raise capital. It can do this in two primary ways as a public company: issue shares or issue debt. While CoreWeave's share count has risen, it has also issued a lot of debt.
CRWV CoreWeave$61.74-$0.39 (-0.63%)
NASDAQ · As of 3:15 PM ET 10/21/26
These bonds are issued at a certain price and yield. So, CoreWeave will pay the bondholders an interest payment, just like a regular Treasury bond. However, this debt can also be traded on a secondary market. When investors get concerned that the company may not be able to meet its obligations, the price of the bond tumbles, causing the yield to rise.
CoreWeave's bonds are now starting to yield over 15%. That's a sign that the market doesn't believe that CoreWeave will be able to pay its debts. In fact, it's classified as "distressed debt," which is worse than "junk bonds." That's not a great place to be in, so what should investors do?
The people in the know aren't panicking
CoreWeave is currently an unprofitable company and is spending every penny it can get its hands on to increase its computing power. It's also growing revenue very rapidly, so it may be able to close the gap.
Huang's comments about CoreWeave's cost of capital going down point to how high the yields of its bonds are when they're issued for the first time. So, there is a mismatch between what the market believes and what creditors issuing the bonds believe. I think this is the key distinction here.
The market is currently bearish on all things AI, and is back to worrying about how much money is being spent on the AI build-out. CoreWeave's debt is one of the obvious places to sell off if you think the entire AI build-out thesis is in trouble. However, I think the market has it wrong, because all the AI hyperscalers have indicated full steam ahead, and that AI is still transforming how businesses are being run.
While I'm not racing to buy CoreWeave's debt, I'm also not bearish on it. As for CoreWeave's stock, if it can do exactly what it says it will do to meet the obligations of major deals it has signed, the stock should work out just fine. However, CoreWeave will eventually need to flip the probability switch.
Skydance shares are staging a sharp recovery while the rest of the media sector slides, and the reason traces back to a warrant split that may not be done rattling the stock.
A sharp retracement is lifting Skydance (NYSE:SKYD) after its warrants began trading separately. This bounce is coming while the rest of the media group drifts lower. Skydance shares are up 10% to $7.84 in afternoon trading, a move that wins back some of the ground lost once Skydance stock and its warrants separated.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.7% to $774.25, so the broad market is giving stocks a supportive backdrop. By contrast, the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) is down 0.7% to $109.43, leaving media and internet names behind the overall market. That gap between the two funds marks Skydance’s gain as a stand-alone move.
Meanwhile, Spotify Technology (NYSE:SPOT | SPOT Price Prediction) stock is down 0.6% to $523.14, a modest slip that puts it on the opposite side of Skydance’s rally. Walt Disney (NYSE:DIS) shares are slipping, down 0.2% to $111.49, which leaves the entertainment heavyweight slightly lower while Skydance posts its sharp gain. Neither peer is moving anywhere near as much as Skydance, which keeps the focus on the warrant story.
The Warrant Split Behind the Selloff
Skydance completed its acquisition of Warner Bros. Discovery earlier this month, then distributed long-dated warrants to shareholders last week. The company released details on the separate trading of its SKYD Class B shares and warrants, and Skydance stock fell once the two securities split, as part of each holder’s value moved into the warrants.
Even with the bounce, Skydance shares sit 16% below the $9.28 level where they started trading on the NYSE, so the rebound retraces only part of that markdown.
What the Peer and Fund Figures Show
Spotify, Disney and the communication services fund are all moving lower while Skydance climbs. That divergence marks the gain as a Skydance-specific retracement.
Within the Communication Services fund, Disney held a 4.5% weight as of June 30, while Skydance sat at just 0.4%. That weighting means the fund’s dip reflects Disney and larger media names far more than any swing in Skydance.
Skydance now combines the Paramount and Warner Bros. film studios, streaming services including Paramount+ and HBO Max, and television networks such as CBS and CNN, and Paramount+ alone counted 81.6 million subscribers in its most recent reported quarter. Disney pairs streaming with theme parks, while Spotify sells audio subscriptions, so neither faces the merger integration and warrant questions hanging over Skydance.
The bull case for Skydance rests on scale, with two major studios and two streaming platforms under one roof feeding a deeper content library. Skeptics point to Skydance’s integration risk and the warrants themselves, since a second security trading alongside the Class B shares can weigh on Skydance stock until the overhang clears.
Skydance’s First Combined Quarter Is the Next Proof Point
On November 9, Skydance is scheduled to post Q3 2026 results, its first report as the combined company. Skydance’s earnings report could show whether the merged studios and streaming services are working together. Management’s commentary on how the two studios and two streaming platforms fit could shape how Skydance stock trades afterward.
The open variable is how fast the warrant overhang clears. Wide gaps between the Class B shares and the warrants could keep Skydance stock volatile in the near term.
Skydance faces a stretch where warrant pressure and integration work overlap, and the combined company hasn’t posted a full quarter as one business yet. Investors weighing their SKYD stock exposure should calibrate their holdings carefully while the picture clears.
Contact [email protected] for any questions or corrections.
Bank of America zvýšila cílovou cenu akcií Seagate (STX) z 1 150 USD na 1 200 USD díky silnější poptávce po pevných discích (HDD) a zvýšila odhad tržeb pro fiskální rok 2027 na 18,7 miliardy USD.
Seagate Technology Holdings PLC (NASDAQ:STX) is positioned for stronger revenue and earnings growth as demand for hard disk drives (HDDs) outpaces the company's long-term expectations, according to Bank of America, which raised its price target on the stock to $1,200 from $1,150.
The bank reiterated its Buy rating, forecasting first-quarter fiscal 2027 revenue at the high end of management's guidance and earnings above its projected range.
Bank of America expects revenue of $4.2 billion for the September quarter, against company guidance of $4 billion to $4.2 billion, and earnings per share of $7.60, above the guided range of $7.10 to $7.50. Wall Street consensus stands at $4.14 billion in revenue and $7.41 in earnings per share.
The analysts expect continued pricing strength, forecasting revenue per terabyte to rise about 22% year over year in the first quarter and around 20% in subsequent quarters. They also anticipate sequential revenue and profitability growth throughout fiscal 2027.
Demand for nearline HDDs, which are used in data centers and cloud storage, is expected to remain above Seagate's long-term target of mid-20% annual growth in exabyte shipments, the bank said.
The transition from conventional perpendicular magnetic recording (PMR) drives to heat-assisted magnetic recording (HAMR) technology should also support margins through lower costs per terabyte. However, the ramp-up of production yields for Seagate's Mosaic 4+ platform could constrain growth.
Bank of America raised its fiscal 2027 revenue estimate to $18.7 billion from $17.5 billion and its earnings-per-share forecast to $36.53 from $32.06.
Its new $1,200 price target is based on 16 times estimated fiscal 2028 earnings per share of $76.24, reflecting a stronger growth outlook and expectations of margins approaching peak levels. The bank expects favourable pricing and margins to persist into 2028.
Akcie AST SpaceMobile 20. října klesly na 52týdenní minimum 39,02 USD, 12 dní poté, co se SpaceX dohodla na koupi spektra v pásmu 800 MHz za 8 mld. USD.
AST SpaceMobile (ASTS -0.97%) sank to a 52-week low of $39.02 on Oct. 20, just 12 days after SpaceX (SPCX +7.00%) agreed to acquire Grain Management's nationwide 800 MHz low-band spectrum portfolio for $8 billion. Let's see why that announcement torpedoed AST's stock -- and why investors might be overreacting to the news.
Why did SpaceX's move crush AST's stock?
AST SpaceMobile develops low Earth orbit (LEO) satellites for direct-to-cell connections. Its top customers include AT&T (T -5.64%) and Verizon (VZ -2.03%), and its satellites expand their cellular networks to remote areas that their terrestrial towers can't reach.
Image source: Getty Images.
AST has launched 13 of its BlueBird satellites so far, but it can't deliver stable cellular connections and generate recurring commercial revenue until it expands that constellation to at least 45 satellites. It expects to reach that target by early 2027, and gradually expand its constellation to 248 satellites over the long term. In addition to AT&T and Verizon, AST is working with dozens of other carriers to reach over 3 billion wireless subscribers worldwide.
In the past, AST and its clients didn't directly compete against SpaceX, which provided first-party satellite internet and broadband services through Starlink. But satellite signals can't penetrate walls and windows very easily, so Starlink relies on mid-band spectrum partners like T-Mobile (TMUS -2.78%) to reach those indoor dead zones.
By purchasing Grain's 800 MHz spectrum -- which previously belonged to T-Mobile -- and combining it with a constellation of over 10,000 active satellites (which are smaller than AST's satellite arrays), Starlink can evolve into a fully independent wireless carrier. That could spell trouble for AT&T and Verizon's slower-moving plans with AST SpaceMobile.
$40.73-$0.40 (-0.97%)
NASDAQ · As of 3:03 PM ET 10/21/26
Why was that sell-off an overreaction?
It made sense for AT&T and Verizon to get crushed by the news, but AST's decline is less rational. If AT&T, Verizon, and other carriers want to counter Starlink's latest move, they'll need to ramp up their spending on AST SpaceMobile's BlueBird satellites. They could also increase their investments in the company to accelerate those efforts.
Moreover, SpaceX isn't positioning Starlink as a competitor to AST. Instead, it will likely drive more carriers to partner with AST to expand their own satellite networks.
Therefore, I think AST's pullback was mainly due to overheated valuations rather than an existential threat to its business. Even after its recent decline, it still trades at 74 times this year's sales and 21 times next year's sales.
Analysts still expect AST's revenue to surge from $168 million in 2026 to $1.73 billion in 2028. If you believe it can hit those targets as it expands its constellation and gains new partners, it might be smarter to accumulate this volatile stock rather than sell the news.
Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Soud v Novém Mexiku nařídil společnosti Meta zaplatit pokutu ve výši 25 miliard USD za klamání uživatelů ohledně ochrany soukromí a sběru dat v kauze Cambridge Analytica.
Meta was ordered to pay $25 billion in penalties by a New Mexico court on Wednesday as part of a data privacy case that stemmed from the company's Cambridge Analytica scandal from nearly a decade ago.
The penalty, revealed in a court filing, comes after a jury in a Santa Fe courthouse found in September the social media giant liable for misleading state citizens about how it safeguards and collects user data and prevents harmful information from flourishing on its services.
Although the jury concluded that Meta had more than 43 million violations of the state's unfair practices act, with each transgression carrying a civil penalty as high as $5,000, a New Mexico judge was responsible for determining the ultimate fine. The Wednesday filing showed that the state was awarded $219.5 billion, but the penalty was ultimately reduced to $25 billion.
"The extraordinary number of willful violations found by the jury, the duration and repetition of the conduct, the breadth of subjects on which violations occurred, the involvement of senior Facebook leadership, the size of New Mexico audiences reached, and the clear intentional and systematic nature of Facebook's repeated misstatements established in the trial record support the highest level of penalty allowed by the New Mexico Unfair Practices Act - $5,000 per violation found by the jury," New Mexico District Court Judge Francis Mathew wrote in the filing.
The judge added that interest on the penalty shall accrue at the rate of 15% each year until the fine is paid off in full.
"For too long, powerful technology companies have operated as though their size and influence put them beyond the reach of the law," said New Mexico Attorney General Raúl Torrez in a statement.
He added that "this penalty order demonstrates that those violations carry real consequences."
Meta chief legal officer C.J. Mahoney criticized the penalty, saying in a statement that the company is "confident" that it will "prevail on appeal."
"This ruling, and the Attorney General's approach to this enforcement, makes it all but impossible to do business in the state of New Mexico," Mahoney said in the statement. "At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online."
Meta previously resolved various Cambridge Analytica-derived data privacy lawsuits across the nation as part of an overarching August settlement of nearly $17 billion with a coalition of state attorneys general in a separate federal case related to child safety and mental health. But because New Mexico was not part of the settlement, the state's data privacy case that arose from Meta's Cambridge Analytica scandal proceeded to trial in September.
In 2022, the social media giant agreed to pay $725 million to settle a class action lawsuit that also sprang from the company's Cambridge Analytica scandal that kicked off in 2018. That scandal rocked the Mark Zuckerberg-led company before its official name change to Meta, and focused on allegations that the political consulting firm Cambridge Analytica improperly accessed the information of 87 million users, raising questions about Facebook's data handling practices.
Mathew said in the filing that "Facebook did not conduct the comprehensive investigation that it promised" following the Cambridge Analytica revelations.
"Pressure from senior executives to keep costs down, lack of adequate enforcement resources, inadequate investigative techniques, and a desire not to create precedent for future investigations," all contributed to what the judge characterized as a "willfully ineffective" internal examination by Facebook, the filing said.
Former New Mexico Attorney General Hector Balderas originally filed the state's Cambridge Analytica-related lawsuit in 2021, while current AG Torrez oversaw the related trial.
Torrez also led his state's child safety-related trial against Meta that resulted in a March jury ruling that the social media company should pay $375 million for violating the state's unfair practices act. A New Mexico judge would later order Meta to pay $567 million into an abatement fund as part of a second phase of the case that determined the social media firm's actions created a public nuisance.
Meta said it disagreed with that New Mexico ruling and planned to appeal.
AMD Stock Gains as New India AI Project Fuels Optimism Ahead of Nov. 3 Earnings
Summary
AMD shares gained as a major AI infrastructure project in India and a higher Wall Street price target boosted investor interest ahead of earnings
Advanced Micro Devices AMD shares climbed about 2% in morning trading Wednesday as a new AI infrastructure project in India and a higher price target from Susquehanna added to investor interest.
Cloud infrastructure provider Vultr plans to deploy AMD's Instinct MI355X graphics processors in a 20-megawatt supercluster in Chennai. The facility is expected to serve AI developers, startups, enterprises and research institutions. Vultr also plans to expand its AI computing capacity in 2027.
Susquehanna analyst Christopher Rolland raised his price target on AMD to $620 from $550 while maintaining a Positive rating. The firm expects modest upside for semiconductor companies' third-quarter results and fourth-quarter guidance, although it sees potential weakness in second-half client processor performance as PC builds trail expectations.
AMD is scheduled to report third-quarter results on Nov. 3. The semiconductor sector also advanced as recent updates from Super Micro Computer and SpaceX bolstered optimism around AI infrastructure spending. However, investors remained attentive to upcoming economic data for signals about the Federal Reserve's next interest-rate decision, which could influence borrowing costs and demand for growth stocks.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
A brutal week of selling left NVIDIA at its cheapest valuation in months, but the fundamentals tell a completely different story than the price action suggests.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) closed at $216.47 on October 20, and our model says that price underestimates the business. The 24/7 Wall St. price target for NVIDIA is $258.42 over the next 12 months, implying 20.68% upside.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$214.13
24/7 Wall St. Price Target
$258.42
Upside/Downside
20.68%
Recommendation
BUY
Confidence Level
90%
Our model carries high confidence because NVIDIA trades at just 16 times forward earnings while revenue grew 105.8% year over year last quarter.
Wall Street agrees, with 59 Buy ratings against 2 Holds and 1 Sell. A sharp week of selling on AI financing concerns pulled shares lower, and our model treats that pullback as noise relative to the earnings trend.
AI Funding Jitters Drove a Weekly Slide Despite a Record Quarter
NVIDIA fell 6.61% over the past week, leaving shares up only 0.11% over the past month and 15.08% year to date. The stock sits between a 52-week high of $243.37 and a low of $163.90. The selloff tracked a global tech rout on AI funding worries, though CEO Jensen Huang said CoreWeave is improving and needs no backstop.
Fundamentals look far stronger. Fiscal Q2 2027 revenue reached $96.22 billion versus a $92.07 billion estimate, and non-GAAP EPS of $2.22 exceeded the $2.09 estimate, marking a fifth consecutive beat. Data Center revenue rose 117% to $89.02 billion.
Why Bulls See $269 and Beyond
Management expects fiscal 2028 revenue to grow about 70%, and called that outlook supply-constrained. Huang said, “We have supply for 70%. We have more supply than 70%, but about 70%. Our demand is much higher than that.”
Vera Rubin carries about $40 billion of revenue opportunity per gigawatt versus about $25 billion for Grace Blackwell, while top-five hyperscaler capex is expected to reach $1.3 trillion in 2027. Our bull case reaches $269.13, and the $328.72 consensus target shows how far optimists see room to run.
The capex wave reaches far beyond the GPU vendors, into the power, cooling, and networking suppliers quietly selling into every new data center (we pulled together seven of them in a report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).
Financing Exposure and Margin Pressure Worth Watching
Supply obligations grew to $279 billion, cloud-partner guarantees are capped at $108.5 billion, and days sales outstanding rose to 60 days from 45. Management acknowledged some may call its AI lab support “circular financing.”
Gross margin should bottom at 71% to 72% in Q4, and China data center computing is excluded from guidance. Our bear case lands at $225.15, still above today’s price.
The margin dip reflects rising memory costs, and management expects 72% to 73% in fiscal 2028 as price increases take effect.
NVIDIA Trades Cheaper Than AMD and Broadcom
Advanced Micro Devices (NASDAQ:AMD) is the most direct GPU rival, with a Meta deal for up to 6 gigawatts of Instinct GPUs. AMD trades at 40 times forward earnings on 50.11% revenue growth, a higher multiple for slower growth.
Broadcom (NASDAQ:AVGO) is the custom-silicon alternative for hyperscalers, with AI semiconductor revenue up 221% to $16.7 billion. At 19 times forward earnings, Broadcom is the closest valuation match.
Company
Forward P/E
Latest Quarterly Revenue Growth
NVIDIA
16x
105.8%
AMD
40x
50.11%
Broadcom
19x
85.5%
Applying Broadcom’s multiple to NVIDIA’s forward EPS implies about $255.89, close to our target. The peer group makes our 24/7 Wall St. price target look reasonable, even conservative.
Our Verdict: NVIDIA Earns a BUY Rating at $214
The 24/7 Wall St. price target of $258.42 carries a buy rating at 90% confidence. NVIDIA grows faster than its peers at a lower forward multiple.
Upside strengthens if Vera Rubin ramps on schedule and Q3 revenue lands near the $108 billion guide. The thesis weakens if AI lab financing stress turns into canceled orders. At this price, the model sees more upside than downside.
The chart below shows where our model projects NVIDIA could trade at each year-end, assuming current growth trend hold.
Year
24/7 Wall St. Price Target
2026
$219.16
2027
$275.33
2028
$309.60
2029
$325.96
2030
$368.42
These projections assume NVIDIA keeps executing on its current product cadence. China export policy, the strength of hyperscaler capex and custom silicon competition could move results sharply in either direction.
Contact [email protected] for any questions or corrections.
Netflix NFLX faces a question that one disappointing earnings outlook cannot fully explain: does Hollywood’s biggest entertainment budget still buy a durable competitive advantage?
NFLX shares are down some 4% this morning after the streaming giant lowered its 2026 ads sales guidance to $3 billion at most, as Q3 revenue came in up 11.8% - marking the slowest growth in nearly three years.
Speaking on CNBC, industry mogul Tom Rogers argued that changes in how entertainment is made and consumed threaten a spending advantage that has long underpinned Netflix’s success.
Netflix’s model depends on a reinforcing cycle: fund compelling entertainment, attract subscribers, strengthen pricing power, and reinvest the proceeds into more programming.
Rogers questioned whether that engine can keep delivering the same results as cheaper alternatives capture viewers’ attention.
“Having the biggest entertainment budget is not necessarily going to be the decisive factor” – he noted.
Creator videos represent one challenge because their appeal doesn’t really depend on Hollywood production costs. Rogers pointed to YouTube’s growing engagement as evidence that expensive programming no longer has the audience’s undivided attention.
He also identified artificial intelligence-generated entertainment as a potential competitive threat, arguing that it could eventually deliver premium programming at substantially lower costs.
That remains his assessment of the technology’s potential, rather than proof that “AI productions” already match Netflix’s slate commercially.
Tom Rogers sees another complication for Netflix shares – the company may need more sports to improve engagement, but securing those rights could weaken the very spending advantage it wants to protect.
“Sports programming is very expensive,” he argued on CNBC.
Spending more on live rights would leave a smaller share of the programming budget available for films and series, unless Netflix increased overall spending.
Its budget would consequently begin to resemble those of rivals already balancing entertainment against substantial sports commitments.
“My guess is they’re going to go heavier on sports,” Rogers added.
He identified potential NFL rights opportunities linked to Paramount’s change of control as an area to watch.
For investors, the question would be whether additional engagement and ads justify the acquisition costs.
Crucially, Rogers’ argument was not that NFLX's business is broken. He drew a distinction between its American engagement challenges and the strength of its overseas programming.
“They are doing something very right,” he said of the international operation.
According to Rogers, non-English international content now accounts for about a third of Netflix’s overall viewing.
He highlighted successful programming across markets including India, Japan, Mexico and the Nordic countries, alongside profitability that he described as substantially ahead of rival streamers.
That creates a more nuanced investment debate. NFLX stock retains an international engine that competitors would struggle to reproduce, even if its domestic content strategy needs improvement.
The implication of Rogers’ analysis is that investors should judge future spending by the engagement and financial returns it produces.
A larger budget alone offers less reassurance when viewers have increasingly attractive alternatives.
Netflix is making itself clear: It's a streaming-first business.
During the company's third-quarter earnings call on Tuesday, co-CEO Ted Sarandos reiterated the streaming giant's long-held stance that its content, which it spent $20 billion on last year, is meant for its subscribers and, therefore, should be delivered to customers on its streaming platform as quickly as possible.
Yet, the company is set to have 30 theatrical releases in 2027, on par with what it brought to cinemas in 2026. And while not all of these features are expected to have wide releases or long runs in theaters, Netflix is testing the waters with projects like Greta Gerwig's "Narnia: The Magician's Nephew," which will have a wide release and a 49-day exclusive theatrical window when it hits cinemas in February.
The company seems poised to carve a new path forward as it grapples with viewership stagnation and a stock slump of roughly 30% since January.
How its theatrical ambitions fit into a streaming-first strategy remains a question mark.
"Theatrical releases are a net positive for reach and streaming demand," Alicia Reese, analyst at Wedbush, wrote in a note Wednesday. "Netflix's more amenable attitude toward exclusive theatrical windows will not only facilitate better relationships with talent, but also add a new revenue stream and build interest in its streaming service. This follows the pattern we have seen with the major studios' streaming platforms over the past several years: theatrical releases don't cannibalize the streaming window, as Netflix fears."
Ahead of its Tuesday earnings report, Netflix restructured its C-suite, bringing in former Disney executive Peter Rice to take over as the company's chief content officer, ousting 10-year veteran Bela Bajaria.
Netflix also dismissed Dan Lin, the company's head of film, according to a person familiar with the matter who spoke on the condition of anonymity to discuss internal changes. That came just days after it laid off roughly 1,000 employees including Lin's right hand Doug Belgrad as well as Sheroum Kim, the director of independent film, according to various media reports. It's unclear who Netflix will tap to take over Lin's position.
The company aims to restore quality to the brand and utilize Rice's expertise in talent relations to lure big names in an increasingly competitive market.
Still, Netflix executives seemed to downplay the change in leadership during the company's earnings call.
"Our business and our business flywheel are working," Sarandos told investors during the company's earnings call. "There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. ... It's just not growing as fast as it could or as fast as we'd like."
Sarandos said the streamer had "some really solid doubles and triples this year," but suggested the company needs more "home runs."
In an emblematic moment during Tuesday's call, Sarandos highlighted a deal with Disney, struck in October, to bring the Ice Age films and others to the streaming service, and gave a nod to that company's CEO, Josh D'Amaro.
"We already are seeing some of those benefits from the Ice Age movies. All five of them hit our top 10. That's really exciting," the Netflix co-CEO said. "And by the way, yes, Netflix just plugged a Disney movie on our earnings call. You're welcome, Josh."
Netflix's content strategyIn a bid to capture consumer attention and broaden its subscriber funnel, Netflix has spent years diversifying its offerings to include video games, live sports and quick-turn documentaries on buzzy cultural moments.
But more recently, it's lacked some of the water-cooler-type hits like "Stranger Things," "Bridgerton" and "Squid Game" that previously boosted subscriptions and viewership numbers.
"We know there's some investor concern about our view hours growth," Netflix said in its shareholder letter Tuesday. "Engagement — which encompasses quantity, quality and variety of viewing — remains healthy."
And yet with Netflix stating plainly that it needs new avenues for growth — and against the backdrop of a foiled deal to buy the Warner Bros. film studio — investors and onlookers are once again looking at the theatrical business.
"I think there's a place for the theatrical for Netflix," Matthew Condon, equity research analyst at Citizens, told CNBC. "Especially, as the competition for time and attention just continues to increase."
"If they really want to build stickier fan bases around some of their [intellectual property], I think theatrical could be a good avenue for them to do that," Condon said. "That's one area that Netflix has historically not been all that strong in, is building like really, really strong IP. And I think building fan bases around theatrical releases and things of that nature can help with that and then also can help them get top tier talent."
Netflix is no stranger to luring in big Hollywood directors. It's worked with the likes of Rian Johnson, Martin Scorsese, Alfonso Cuarón, Bong Joon Ho, Spike Lee and Guillermo del Toro. However, none of these directors' Netflix films received a wide theatrical release or a long run in theaters.
Sarandos admitted earlier this month that the company has lost talent because it would not guarantee wide theatrical releases.
Most notably, the creators and lead producer behind its hit "Stranger Things" have all jumped ship in the last year. Matt and Ross Duffer signed a four-year exclusive deal with Skydance — the new home of the same Warner Bros. film studio that Netflix nearly bought — while Shawn Levy joined the ranks of Disney to direct "Star Wars: Starfighter."
Going to the moviesSarandos said Tuesday the company's strategy is about "specialty theatrical releasing," in which each film gets its own bespoke release. In some cases, Netflix plays the film in theaters for the minimum requirement to be eligible for awards. Others appear for weekend stints as one-off events, like in the case of its "KPop Demon Hunters" smash that ran in theaters for just two days.
Gerwig's "Narnia" adaptation is among those chosen few to get longer theatrical runs and a wider reach, along with an animated film called "Charlie vs. the Chocolate Factory."
"Both films have big global IP and big global fandom, so we're very excited about how they'll play out next year," Sarandos said.
In another sign of its evolution into theaters, Netflix has said it will report box office results for films that have longer theatrical windows. Those readouts are standard for major studios, regardless of release or windowing, but the move marks a new level of disclosure for the streamer.
Incoming content head Rice could be the missing piece for Netflix in a new theatrical model.
The executive has a wealth of experience in television and film. Since 2023 he has produced films like "Saturday Night" and "28 Years Later." He's currently developing a movie adaptation of the video game "Elden Ring."
But right now, Netflix doesn't have the infrastructure for a full theatrical commitment.
"Going into theatrical isn't quite as easy as I think sometimes folks make it sound," Steven Cahall, stock analyst at Wells Fargo, told CNBC. "You have to negotiate with movie theaters, and find spots for your films."
Cahall noted that sending the occasional film to theaters, especially with a limited release, "maybe isn't so hard, but there is a muscle of theatrical distribution ... You need a team of people, and you need a pipeline of content that's intended for theatrical release, and you need a marketing department around it."
That's where buying Warner Bros. Discovery's studio assets would have come in. In the absence of that acquisition, it's not clear how, or how quickly, Netflix can bulk up its own operations.
Plus, it's previously balked at the marketing costs that come with bringing films to the cinema, which can total hundreds of millions of dollars per film. Despite a hefty content budget, Netflix has long prioritized quantity and seemingly endless choice for its subscribers over individual big-budget projects.
A shift to a multi-pronged strategy that feeds both streaming and cinemas would require Netflix to more closely mimic the companies it disrupted in the first place.
"So that becomes more of an existential question for Netflix: Is it time to become a media conglomerate rather than being a pure play streaming company?" Wells Fargo's Cahall said. "'Do we want to become a media conglomerate?'"
Společnost Johnson & Johnson zvyšovala dividendu 64 let po sobě, ale za posledních 10 let dosáhla celkového výnosu 195,71 % oproti růstu indexu S&P 500 o 259,31 %, přičemž tento údaj nezahrnuje dividendy.
Johnson and Johnson has raised its dividend every single year for 64 years straight, yet a plain S&P 500 index fund still beat it handily over the past decade. Understanding why reveals something surprising about what actually kept long-term shareholders…
Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) spent the past decade rebuilding itself and raised its dividend every year. Say you put $1,000 into the stock 10 years ago and reinvested every payout. You would have $2,957.10 today, and about $703 of that came from dividends.
From Baby Powder to a Pharma and MedTech Powerhouse A decade ago, J&J was a conglomerate with three divisions. In August 2023, it spun off consumer health as Kenvue (NYSE:KVUE), leaving two divisions: Innovative Medicine and MedTech. Then it went shopping. It bought Abiomed in 2022, Shockwave Medical in 2024, and Intra-Cellular Therapies in April 2025. It also plans to spin off its orthopedics business.
Talc lawsuits hung over all of it. In the third quarter of 2026, charges of about $7 billion for a proposed talc settlement and two deals cut reported EPS to $0.09. Adjusted EPS was $2.59.
Your $1,000 Nearly Tripled, With Dividends Doing Heavy Lifting 1-Year Return
Initial Investment: $1,000 Current Value: $1,349.40 (price only: $1,319.69) Total Return: 34.94% S&P 500 (same period): $1,145.30 (14.53%) 5-Year Return
Initial Investment: $1,000 Current Value: $2,957.10 (price only: $2,253.61) Total Return: 195.71% Annualized Return: 11.45% S&P 500 (same period): $3,593.10 (259.31%) The S&P 500 figures leave out dividends, so the market’s real 10-year lead is bigger than shown. Over five years, dividends made the difference. On price alone, J&J returned 56.46% and trailed the index. Holding on also took patience. The stock fell 23.63%, from $186.01 in April 2022 to $142.06 in January 2025. During that slump, reinvested dividends bought shares cheaply, and the past year’s rally paid that off.
Growth Engines vs. the Talc Bill: What Decides the Next Decade The case for Johnson & Johnson rests on new drugs continuing to offset STELARA’s decline. It struggles if lawsuit and deal costs start crowding out the dividend.
Bull case: Oncology sales grew about 17% last quarter, and TREMFYA rose 68.2%. The company expects $21 billion in free cash flow this year. CEO Joaquin Duato says there is “a clear path to double-digit growth by the end of the decade.” J&J reports 64 straight years of dividend increases. The payment history we checked supports that: the quarterly payout rose every year, from $0.18 in 2002 to $1.34 today.
Bear case: The biggest risk to the dividend is cash. Net debt is about $28 billion. Two recent deals, Firefly Bio and the Cell BioMedicines collaboration, are expected to cut 2027 adjusted EPS by $1.36. Talc settlement payments come on top of that. If they eat into free cash flow, dividend increases could shrink to small amounts.
The record favors patient investors who reinvest their dividends. With shares up 25.52% this year, the easy gains may already be behind it. I’d still expect dividends to keep doing much of the work.
Contact [email protected] for any questions or corrections.
General Motors v příštích měsících nasadí AI asistenta OnStar do elektrického modelu Cadillac Lyriq pro modelový rok 2027; následovat mají další vozy GM.
General Motors is adding a personal AI assistant to OnStar as part of a broader makeover of the subscription-based connected car service that the U.S. automaker launched 30 years ago.
The OnStar AI Assistant will debut in the 2027 Cadillac Lyriq EV in the coming months, with more GM vehicles to follow, the company said Wednesday at its GM Forward event in New York, where it made a series of other technology announcements covering software, automated driving, EVs, and its electrical architecture. The company said it will launch a new OnStar mobile app in 2027 that will complement and sync up with its in-car software.
The new OnStar mobile app will replace the current OnStar Guardian app that launched in 2020 as well as vehicle brand apps for Buick, Cadillac, Chevrolet, and GMC.
This tech-centric reboot is unlike other attempts to modernize OnStar and it notably puts agentic AI at the center. The company has updated the safety and roadside assistance service numerous times in its history, especially in the past five years as it tried to stay apace of emerging and tech-forward competitors like Tesla.
In 2021, the company expanded its OnStar Guardian app, which offered crash detection, emergency assistance and location sharing, to anyone with a compatible phone, even if they didn’t own a GM vehicle. A year later, GM started using Google Cloud’s conversational AI Dialogflow to recognize specific spoken requests and expanded in 2023 to give drivers responses to common queries like routing and navigation assistance — all part of GM’s plan to build a $25 billion subscription business by 2030.
GM continued to focus on generative AI, but relied on Google to provide the experience. The company said last year that Google Gemini would roll out in vehicles in 2026.
Image Credits:GM / The OnStar AI Assistant is an in-house effort and one aimed at giving the driver and passengers an interactive and custom experience — and become even more embedded in their daily lives.
“OnStar is now transitioning to be a connected intelligence platform, not just the call center that it’s historically been known as, but a mechanism for interpreting, understanding, and providing predictive, proactive support to its owners,” GM’s VP of global product and chief product officer Sterling Anderson told TechCrunch in an interview ahead of the GM Forward event.
For instance, cameras on the vehicle will be connected to the software to offer live views as well as crash and safety recordings. Users can set up the connected cameras to turn on automatically if the vehicle senses an impending event — for instance an aggressive horn honk — then capture the event and upload it to the OnStar app. Users will be able to use voice to control certain functions on the vehicle, including climate, and ask questions about any specific vehicle feature.
The launch coincides with efforts throughout the auto industry to stay apace of Chinese automakers with technology that is central to the vehicle — and no longer a slapped on gimmick or feature. But that has required GM to change its approach to software development, adopt AI tools, and even design a new electrical and centralized compute vehicle architecture.
The announcement also comes after GM has been criticized and even fined for sharing data with third parties. Earlier this year, the Federal Trade Commission finalized an order that bans General Motors and its OnStar telematics service from sharing certain consumer data with consumer reporting agencies. The finalized order also requires the automaker to be more transparent with its consumers and obtain their explicit consent on certain data collection.
GM said Wednesday that customers will have the ability to decide what data is shared, and that the recordings have time limits and are encrypted. GM said it and OnStar cannot access Connected Camera recordings.
A GM spokesperson later shared that third-party sharing a “feature-specific and consent-based, with information shared only as needed to provide requested functionality.” Customers can manage permissions and withdraw consent, however those who choose not to share certain data may have limited access to related features, while other OnStar services would continue, according to GM.
This article was updated to include comments from a GM spokesperson.
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.
General Motors (GM.N) plans to offer “eyes-off” autonomous driving on its highest-selling, most profitable vehicles — big pickup trucks and SUVs — as it seeks fresh revenue streams from heavy technology investments.
Last year, GM said it would offer autonomous highway driving in 2028 on its pricey but light-selling Cadillac Escalade IQ, an electric SUV. On Wednesday, the automaker said it would expand the service to its pickup trucks and other large SUVs, without specifying a timeframe.
Many assisted-driving systems control steering and speed in certain settings —sometimes hands-free — but require the driver to remain attentive. Those include Tesla’s Full Self-Driving (Supervised) system and GM’s Super Cruise feature, which debuted about a decade ago.
Only a few automakers have introduced eyes-off systems, including Mercedes-Benz (MBGn.DE), with service typically limited to small geographic areas at low speeds, such as in stop-and-go traffic.
Some industry executives have said eyes-off driving that exchanges control back and forth from the car to the driver raises thorny safety and liability questions, and might not interest enough car shoppers.
Sterling Anderson, GM’s chief product officer who previously worked at autonomous-truck company Aurora, said GM is building "an autonomous system that operates safely on highways that actually gives you your time back.” He said GM will eventually expand the service to other roads.
NEW SOFTWARE BRAIN
GM is developing a new software backbone for future vehicles to deliver the automated-driving system and other digital features, expecting drivers will be willing to pay for them. GM executives outlined the plans during an event in New York on Wednesday.
A central computer will serve as the vehicle brain, allowing the car to receive remote updates like a smartphone. Tesla, Rivian and many Chinese automakers have jumped ahead of traditional automakers in designing the ability to beam software updates remotely to vehicles.
Anderson said inside GM, he refers to the new vehicles as “robots.”
“We're thinking a lot about the ways your life can be better … because your vehicle just knows what you need before you need it,” he told Reuters.
GM’s plan to transform cars into rolling, updatable computers is crucial to compete with Chinese automakers and EV-only brands such as Tesla, said Sam Abuelsamid, vice president of market research at Telemetry, an automotive research firm. If not, “they will fall even further behind the competitors.”
One reason traditional automakers have struggled with software is that they have long outsourced much of that work to suppliers, car executives and analysts have said. Anderson said GM is developing its new “central compute” model in-house, giving the company more control over updates and functionality.
“The world opens up when you control the software across the system in a way that it never was when various suppliers controlled” the car’s digital connections, Anderson said.
TARGETING HIGHER PROFIT MARGINS
Automakers reap average profit margins of around 10% selling vehicles. Software-related services can reach 30% to 40% margins, according to analysis firm PwC.
In a report last month, UBS estimated GM’s digital revenue will increase to $9.6 billion by 2036, from $3.2 billion this year. The bank called GM’s digital capabilities “an underappreciated and undervalued opportunity.”
Ed Nightingale, GM’s vice president of digital products, said GM aims to offer car owners appealing features, because it can’t start “charging for something as part of the core experience that you've always had.”
GM said it will introduce an AI assistant on the Cadillac Lyriq SUV in the coming months.
NEW YORK — General Motors plans to lean into artificial intelligence and vehicle software for future growth and development amid increasing competition abroad from Chinese automakers and a tougher U.S. market.
The Detroit automaker on Wednesday shared new details about a proprietary AI agent it's releasing under its OnStar brand, plans for a fourth generation of more efficient all-electric vehicles and a target to cut its vehicle development time in half.
GM also reconfirmed that by 2028, it wants to have eyes-off highway driving, or "personal autonomy," that will let drivers take their attention off the road. The automaker said that technology would start with the Cadillac Escalade IQ EV before rolling out to other, more high-volume models.
"All of these developments are building us the car of the future," CEO Mary Barra said Wednesday during an event laying out the plans, called "GM Forward," in downtown Manhattan.
The initiatives, which Barra, Chief Product Officer Sterling Anderson and other executives discussed at the event, are designed to streamline the automaker's operations, while also improving the capabilities of its vehicles for customers.
"Over the last 12 months, we've evolved how we design, engineer and build our vehicles," said Anderson, who led the event and who has been tasked with overseeing GM's latest technology transformation.
GM said it is now targeting a vehicle development time of roughly two years from concept to production versus a traditional four- to five-year cycle. However, the company did not detail a timeline for reaching that goal.
Read more CNBC auto newsTesla unveils long-delayed Roadster developed with SpaceX, fueling merger speculationPorsche reveals Mission S concept car that previews new design identityHow lower fuel economy targets could boost pickups and V-8 enginesStellantis CEO urges incentives for carmakers who build in Europe as Chinese rivals gain groundThe event comes as Chinese automakers are growing outside of the U.S. with rapid development times of new technologies and vehicles. Consulting firm AlixPartners said it believes China is currently bringing vehicles to market twice as fast as traditional automakers, with 40% to 50% less investment and a 30% cost advantage.
GM also continues to play catch-up to U.S. EV leader Tesla when it comes to delivering technology advancements through over-the-air updates and automated driving capabilities.
Next-generation vehiclesGM said Wednesday it has major plans for its next generation of EVs and traditional vehicles with internal combustion engines.
The company said those coming vehicles – regardless of type — will have 40 times the computing power and up to 50% faster cellular connectivity than prior systems.
That computing power is expected to help the automaker with over-the-air updates, onboard diagnostics and AI, as well as other technologies such as automated driving features.
The new brain of the vehicle will launch on the $130,000 Cadillac Escalade IQ EV in 2028 before rolling out to other models, including its next generation of EVs.
GM said the forthcoming EVs are expected to be 25% more aerodynamic and 15% lighter and feature electric motors and battery packs that are more compact.
AI developmentGM expects to achieve such targets through the use of AI in research and development.
The company said it is developing a "new operating approach for vehicle development" that leans into enterprise AI and virtualization to increase speed.
"This concurrent engineering model allows us to innovate faster, improve continuously, and scale new technologies across our lineup with incredible agility," the company said in a release.
GM used the development of its next-generation vehicles, including a new battery chemistry, as an example of how the new technologies are reshaping its vehicle development.
The company said it virtually tested more than 300,000 battery designs using its recently announced lithium manganese rich battery chemistry, or LMR, before building a single physical prototype.
Anderson said Wednesday that LMR will be the exclusive battery tech for its fourth-generation EVs. GM had previously said it wanted to use those batteries in full-size electric vehicles such as its Chevrolet Silverado and Escalade IQ beginning in 2028.
Anderson said GM is uniquely positioned to use AI compared to other automotive companies because of its more than 100 years in the industry as well as 30 years of OnStar.
"In the age of AI, data is currency," Anderson said. "For decades, GM's engineering, manufacturing and product teams have generated unparalleled body of data that we're now using to build industry-leading AI tools."
In-vehicle AIThe company is building on its internal use of AI to better shape its experiences for customers.
GM on Wednesday reconfirmed that it plans to launch a proprietary in-vehicle AI assistant through its OnStar technology brand.
The OnStar AI assistant is expected to launch in the coming months on the 2027 Cadillac Lyriq EV through an over-the-air update before expanding to other models.
GM currently uses Google's Gemini for its in-vehicle AI assistant. The company told CNBC earlier this year that the GM-developed AI will be more integrated with the vehicle.
The goal for OnStar AI, which will be available through a subscription, is to help customers be productive while in the car, especially if the vehicle has self-driving capabilities that don't require the driver or passengers to monitor the system.
GM on Wednesday also reiterated its plans to launch eyes-off highway driving in 2028. The automaker said a year ago that it wanted to launch that technology. It's been five years since Barra said she expected the automaker to offer personal autonomous vehicles this decade.
"Our vision is that eventually every vehicle should drive itself or its occupants anywhere, and we're investing across the self-driving stack to make that real," Anderson said.
Electronic Arts uzavře studio BioWare v Edmontonu, ukončí vývoj projektu Mass Effect v rané fázi a podle Bloombergu plánuje propustit přibližně 400 zaměstnanců.
Electronic Arts is planning to close BioWare, the developer of the "Mass Effect" series of games, and lay off employees to focus on more lucrative projects, the company said on Wednesday in an email to employees.
Here are some details:
EA said it would cancel an early-stage "Mass Effect" project and close BioWare's studio in Edmonton, Canada, marking the end of the developer known for role-playing game franchises such as "Dragon Age"
EA is planning to cut around 400 jobs, about 3% of its total staff, including roughly 50 at BioWare, Bloomberg News reported on Wednesday, citing a person familiar with the company’s plans
The videogame publisher said it would concentrate on fewer large-scale action-adventure games, while continuing development of "Marvel's Iron Man" and the next "Star Wars Jedi" game
EA also said it was restructuring the team behind skateboarding simulation "skate." into a smaller, more focused studio
The company said it would help affected employees explore other opportunities within EA
EA was taken private in a $55 billion deal led by Saudi Arabia's Public Investment Fund, Silver Lake and Affinity Partners, which closed in August
NextEra Energy zvýšila upravený zisk na akcii ve třetím čtvrtletí 2026 meziročně o 9,7 % a nadále cílí na horní hranici celoročního výhledu 3,92–4,02 USD.
Utilities Are Bouncing Back—These 2 Giants Could Signal the Next Big Sector RallyNextEra Energy NYSE: NEE reported third-quarter 2026 adjusted earnings-per-share growth of 9.7% from a year earlier and said it remains positioned to target the high end of its full-year adjusted EPS guidance range of $3.92 to $4.02.
For the first nine months of 2026, adjusted EPS rose 9.5% year over year, Chairman, President and Chief Executive Officer John Ketchum said during the company’s earnings call. He attributed the performance to continued execution at Florida Power & Light, or FPL, and NextEra Energy Resources.
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5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves“America needs more electrons on the grid,” Ketchum said, describing affordability, reliability, scale and speed to market as central priorities amid rising electricity demand.
FPL Reports Customer Growth and Storm-Grid Performance
FPL’s earnings per share increased by $0.06 from the prior-year quarter, driven principally by approximately 9.2% year-over-year growth in regulatory capital employed, Chief Financial Officer Mike Dunne said. FPL spent approximately $2.4 billion on capital expenditures during the quarter and expects full-year capital investments of about $12 billion.
5 Defensive Stocks to Watch as CPI and the Fed Put the Rally to the TestThird-quarter retail sales at FPL increased 2.8% year over year due to customer growth and weather. On a weather-normalized basis, retail sales increased 1.4%, also driven by customer growth.
Ketchum also discussed FPL’s response to Hurricane Isaias, saying the utility assembled a restoration workforce of approximately 17,000 people from 29 states. FPL restored power to more than 97% of affected customers by Tuesday after the storm exited its service area early Saturday, he said.
The company said early forensic analysis showed that none of its hardened transmission or distribution poles failed during the storm. Underground neighborhood lines performed approximately 14 times better than overhead lines, while smart-grid technology avoided about 140,000 outages, according to Ketchum.
FPL’s typical residential bill is approximately 37% below the national average and is projected to rise an average of 2% annually through the end of the decade, Ketchum said. He added that the utility’s non-fuel operations and maintenance expense is more than 70% below the industry average on a dollar-per-megawatt-hour basis.
FPL raised its expectation for large-load demand to 8 gigawatts by 2032 from 6 gigawatts previously and remains confident it can announce a large-load transaction before year-end. FPL President and CEO Scott Bores said the company has more than 20 GW of large-load interest in its pipeline, though the projects involve complicated, multibillion-dollar agreements.
Energy Resources Adds 3.7 GW to Backlog
NextEra Energy Resources reported adjusted earnings growth of approximately 13% year over year, contributing an increase of $0.06 per share. New investments, including federal hubs, contributed $0.09 per share, while the existing energy portfolio added $0.05 per share, Dunne said.
The stronger existing-portfolio contribution reflected more normalized wind conditions. Wind resource was approximately 101% of the long-term average during the third quarter of 2026, compared with 90% in the same quarter of 2025.
Energy Resources added 3.7 GW of renewable and storage projects to its backlog during the quarter, including 2.4 GW of battery storage. Its backlog reached nearly 36.7 GW after accounting for more than 1.8 GW of projects placed into service since the prior earnings call.
The company said it has added more than 15 GW to its backlog in the past 12 months.
Energy Resources has now completed more than two-thirds of the midpoint of its 2026-to-2029 development expectations.
The business has 17.6 GW remaining to add before reaching the midpoint of its backlog-development expectations for that period.
Ketchum said Energy Resources has advanced more than 20 GW of large-load projects, including more than 18 GW of gas-fired generation. The company expects to derive value through federally supported hubs, where it would earn development, construction and operating fees without investing capital, and through projects it expects to own and operate.
Energy Resources has signed definitive agreements for three projects in Texas and Pennsylvania totaling approximately 16.5 GW. Those projects have secured $5.7 billion in initial funding year to date, according to Ketchum. The company expects the projects to begin serving significant load through behind-the-meter generation as early as 2028 and 2029, with full campus requirements ramping between 2030 and 2032.
Dunne said federal-hub payments are expected to be relatively modest in 2026 and 2027 before rising as projects advance. Operating fees from 2032 through 2052 are expected to generate roughly half the earnings per share that Energy Resources would receive if it owned the facilities, Ketchum said.
Nuclear, Transmission and Recontracting Updates
NextEra said its Duane Arnold nuclear plant in Iowa remains on track to return to service no later than the first quarter of 2029. During the quarter, the company closed on a Department of Energy loan of up to $1.9 billion to support the plant restart.
The company also executed a 20-year power purchase agreement for approximately 1 GW from its Point Beach nuclear plant in Wisconsin, subject to approval by the Public Service Commission of Wisconsin. The agreement would extend contracting for the facility’s full output into the 2050s. Ketchum said Point Beach’s contribution under the new contract is expected to average roughly $0.21, with the new agreement taking effect as existing contracts roll off from 2031 through 2033.
In renewable recontracting, NextEra said it executed contracts for more than 250 MW of existing projects during the quarter. Its year-to-date renewable recontracting total reached nearly 1,400 MW, with pricing averaging roughly $20 per megawatt-hour above recent realized pricing for those projects.
The company said its regulated and invested capital, plus secured capital expenditures for electric and gas transmission, increased about 25% since December 2025 to approximately $12.7 billion. Dunne said NextEra continues to expect 20% to 25% compound annual growth in transmission rate base from 2025 through 2032, with gas-transmission opportunities representing a potential additional avenue for growth.
Guidance and Dominion Combination
NextEra reaffirmed its expectation to grow adjusted EPS by more than 8% annually through 2032 from a 2025 base of $3.71 per share and to target the same growth rate from 2032 through 2035. The company expects average annual operating cash flow growth from 2025 through 2032 to be at or above its adjusted EPS growth rate.
The company also reaffirmed plans to grow dividends per share by roughly 10% annually through 2026 from a 2024 base, followed by approximately 6% annual growth from year-end 2026 through 2028.
Regarding its pending combination with Dominion Energy, Ketchum said shareholders of both companies approved the transaction on Sept. 3. Regulatory hearings in Virginia and South Carolina are scheduled for November and December, with final orders expected in January 2027. North Carolina expert-witness hearings are scheduled to begin in February 2027.
NextEra continues to expect the combination to close in the second half of 2027. Ketchum said the company has proposed commitments in Virginia involving customer bill credits, bill-assistance funding, workforce development, supplier spending and job creation, while noting that regulatory authorities will determine whether to approve the transaction.
About NextEra Energy (NYSE:NEE)NextEra Energy, Inc is an energy infrastructure company headquartered in Juno Beach, Florida. Through its businesses, the company generates, transmits, distributes and sells electricity, with a focus on regulated utility operations and clean energy development.
Florida Power & Light Company, NextEra Energy's principal regulated utility, serves customers across much of Florida. FPL operates electric generation, transmission and distribution infrastructure and provides retail electricity service to residential, commercial and industrial customers.
NextEra Energy Resources develops, owns and operates renewable energy and energy storage projects, including wind and solar facilities.
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