Market Signal Briefing

The world's leading privacy token has come down considerably off its all-time highs. Here are the key drivers investors are watching closely.

Leading privacy token Monero (XMR 10.11%) is one I think represents the sort of fear that's been building up among some investors in the crypto sector this past week. After surging to a new all-time high on Tuesday, Monero has given up those gains, and then some. Now trading 25.6% lower over the past week, as of Sunday at 4:30 p.m. ET, the tightening of regulations in the cryptocurrency sector (and the corresponding benefits these increased regulations could have on privacy coin demand) haven't been enough to offset broader market weakness and a number of macro trends at play.

Today's Change

(

-10.11

%) $

-50.76

Current Price

$

451.08

Let's dive into what is driving the narrative around Monero right now and why investors are pulling back on a token that has otherwise seen incredible upside momentum in recent months.

Liquidation data pointing in the wrong direction

Source: Getty Images.

One of the key factors at play with Monero's recent decline (and again, I'd encourage investors to zoom out on the chart above) is mainly tied to the technical fundamentals that underpin most assets in the crypto sector. Given the amount of leverage used to trade top tokens such as Monero, liquidation activity among perpetual futures contracts and other derivatives traders use to bet on short-term price movements has an outsize effect on price swings. That's because many of these contracts are designed to provide massive payouts if an expected return over a given period materializes, but can wipe out investors in short order if a token's price swings the wrong way.

More than $2 million of long bets (bullish bets on Monero appreciating) were wiped out over the past 24 hours on Sunday, with millions more liquidated over the course of the past week. This means that a host of investor accounts have effectively been wiped out, with said investors unlikely to put new capital to work in Monero (or the token that liquidated their accounts) at least in the near term.

In combination with significantly reduced open interest (signaling less notional value placed via these aforementioned derivatives products), Monero's investor base appears to be shrinking, at least for now.

We'll see if this trend reverses, but for now, Monero is one token I think investors who don't have a multi-year investing time horizon will want to carefully watch.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Monero. The Motley Fool has a disclosure policy.

2 mins mins

Key Points:

An address linked to Pendle allegedly transfers 1.8 million PENDLE tokens to Bybit. Tokens held 3–4 years, worth around $3.61 million. No official Pendle statements on the transaction. An address linked to the Pendle Finance team reportedly deposited 1.8 million PENDLE tokens, valued at $3.61 million, into Bybit, as monitored by Onchain Lens on January 25.

This significant token movement could influence PENDLE’s liquidity on Bybit, potentially affecting short-term trading dynamics, though no official statements from Pendle or exchanges confirm the transaction.

Pendle Transfers $3.61 Million Worth of Tokens to Bybit According to Onchain Lens, a wallet allegedly tied to the Pendle Finance team has moved 1.8 million PENDLE, worth about $3.61 million to Bybit. The tokens had been held for 3-4 years, potentially signaling a strategic liquidity release.

The movement might affect the exchange’s PENDLE liquidity, linked to increased trading opportunities. This deposit contrasts with previously stable holdings. Analysts speculate on possible operational funding purposes or a stake in escalating market activities.

Arthur Hayes, Former CEO of BitMEX, expressed skepticism about the motivations behind large token movements, citing potential concerns over liquidity and market response: “Large token movements often signal underlying issues or strategic intentions… it’s crucial to monitor the market’s reaction.” Historical Price Surge and Market Insights on PENDLE Did you know? Data suggests that tokens were initially vested at a value of $266,000 but are now worth over $3.83 million, highlighting substantial past price appreciation.

As per CoinMarketCap, Pendle (PENDLE) is priced at $1.85, with a market cap of $313.66 million and a 24-hour trading volume of $51.86 million, marking a 54.66% increase. Recent price data suggests volatility, as the token’s value altered by 7.38% over 24 hours and 11.54% over the past week.

Pendle(PENDLE), daily chart, screenshot on CoinMarketCap at 22:09 UTC on January 25, 2026. Source: CoinMarketCap Insights from the Coincu research team theorize that the current market movement could have technological innovations or strategic investment implications. However, market sentiment remains agnostic until further substantiated data emerges to influence PENDLE’s liquidity framework.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Rate this post

TLDR: Bitcoin ETFs saw $1.72B in outflows as market sentiment remains fragile and cautious.  Fear & Greed Index signals “Extreme Fear” while Bitcoin hovers around $89K.  Lack of catalysts and volatile sentiment leave the Bitcoin price movement uncertain.  ETF outflows and subdued price action reflect shifting risk appetites among investors.  Bitcoin ETFs have been facing a sustained withdrawal streak. $1.72 billion has been pulled in just five days, signaling caution among investors. 

This is despite Bitcoin struggling to break above $100,000 since November; sentiment indicators show an “Extreme Fear” environment. With risk-averse behavior dominating, market participants are closely watching for any signs of a trend reversal or further price decline.

Bitcoin ETF Outflows Signal Growing Caution Among Investors Bitcoin ETFs have experienced significant outflows over the past week. Approximately $1.72 billion was withdrawn across five consecutive trading days.

This trend highlights the fragile investor sentiment prevailing in the market, particularly as Bitcoin has been unable to break above the key psychological level of $100,000 since mid-November. 

The continued pullback underscores the broader risk-off behavior among retail investors, signaling a cautious stance amid persistent uncertainty.

US Bitcoin ETFs have experienced a significant outflow, totaling $1.72B over a five-day streak. 📉

— Bitcoin Dino 🦖 (@bitcoindinos) January 25, 2026

On Friday, Bitcoin ETFs saw a net outflow of $103.5 million, extending a trend that began the previous week. The lack of bullish momentum for Bitcoin is currently hovering around $89,160.

This has led investors to seek safer assets, with many turning to traditional markets like gold and silver. ETF flows are often seen as a barometer for retail appetite in crypto markets.

The current outflow streak reflects the cautious mood dominating the space.

What Does This Mean for Bitcoin’s Near-Term Outlook? The outflows from Bitcoin ETFs are an indication of broader market sentiment. Investors are retreating from riskier assets as the crypto market faces a phase of uncertainty. 

The Crypto Fear & Greed Index recently dropped to “Extreme Fear,” reflecting how fear is weighing heavily on retail participants. Santiment, an analytics firm, suggests that despite the caution, there are signs of a potential market bottom forming. 

On-chain signals, reduced social media chatter, and changes in supply distribution could be early hints that a reversal may be coming. This is even though the timing remains uncertain.

Some analysts remain cautiously optimistic, predicting that a corrective rally could be imminent; others believe that Bitcoin may need more time to consolidate before a definitive trend reversal takes shape. 

With liquidity conditions tightening and no immediate catalysts on the horizon, Bitcoin’s price is likely to remain range-bound for now.

In this uncertain environment, Bitcoin’s immediate price trajectory is highly dependent on sentiment indicators, ETF flows, and any macro developments.

This could restore confidence among investors. However, the current outflows represent a short-term correction before a new bullish phase can emerge.

Since its launch four days ago, Nietzschean Penguin emerged as one of crypto’s most actively traded memecoins.

Nietzschean Penguin [PENGUIN] surged from a low of $0.0021 to an all-time high of $0.174 before facing a sharp pullback. At press time, the token traded near $0.123, marking a 179% daily gain.

Over the same period, trading volume jumped 823% to $579 million, while market capitalization crossed $100 million.

That explosive move left traders asking one question. What sparked the frenzy?

White House post fuels speculation Momentum accelerated after the official White House X account shared a viral image of Donald Trump holding hands with a penguin, captioned,

The picture had Donald Trump holding hands with Penguin and was captioned, 

“Embrace the penguin”

Following the post, PENGUIN’s trading volume surged to $244 million, while the price pushed into new all-time highs.

That reaction reflected classic memecoin behavior, as traders rushed to monetize a sudden viral narrative.

However, speculation alone did not drive the entire move.

PENGUIN whales aggressively accumulate As the market narrative began to favor PENGUIN, investors, especially whales, poured massive capital into it, further accelerating its upside. 

Onchain Lens reported that a whale has bought 20.78 million PENGUIN for 20,575 SOL, worth $2.6 million, and transferred it to another wallet.

Source: Onchain Lens

Additionally, Arkham data showed that a whale accumulated 5.16 million, currently valued at $618k, with $346k in unrealized profit. 

Thirdly, another wallet scooped up 6 million PENGUIN tokens, currently valued at $773k, with $455k in unrealized profit. 

With whales aggressively purchasing PENGUIN, it indicates strong market confidence as they anticipate further price appreciation. 

Profit realization hit a record level As expected, in addition to their accumulation, whales have also sold into the rally as the price continued to rise. 

For starters, Lookonchain reported that a whale spent 6 SOL to buy 16.5 million tokens, then sold them all for 6.12 SOL. After the sale, the whale realized $0.12 in profit, worth $18 in Sol. 

Even after selling, PENGUIN continued to surge, and the 16.5 million tokens are now worth $1.4 million. He missed out on a $1.4 million profit.

Source: Lookonchain

Additionally, another whale sold all 15.94 million PENGUIN for a profit of $1.7 million, according to Lookonchain. 

Often, when whales turn to selling into the rally, it puts downside pressure on the market, potentially derailing upside. This scenario is evidenced by the memecoin retrace towards $0.12 from $0.17.

Momentum faces a test Speculative demand drove the initial rally, amplified by whale accumulation during the breakout phase.

However, profit realization began to tilt short-term control back toward sellers.

Buyer–seller strength data showed buyers leading for three straight days before sellers regained dominance. Seller strength rose to 61.6 at press time.

Source: TradingView

At the same time, A/Dv volume pointed to growing distribution, as volume declined from roughly 36 million to 13 million.

This left PENGUIN’s next move dependent on participation trends.

If buyers, particularly whales, resume accumulation, the price could reclaim $0.17 and attempt a push toward $0.20.

By contrast, continued selling pressure could see PENGUIN lose its $0.10 support and slide toward $0.09.

Final Thoughts Whale accumulation powered PENGUIN’s rally, but seller dominance hints at fragile momentum. Still, early distribution suggests momentum is no longer one-sided.

Entropy, the cryptocurrency custody startup that raised $25 million from Andreessen Horowitz and other prominent venture capital firms, is shutting down operations after four years and will return remaining capital to investors, its founder announced on X.

Tux Pacific, the company’s founder and CEO, said that the decision followed several business pivots and two rounds of layoffs.

“After four hard years working in crypto, I decided that the best I could do has already been done: it was time to close up shop,” Pacific wrote, adding that the company had been working on a crypto automation platform similar to workflow tools like n8n and Zapier but with blockchain-specific features, including automated signing through threshold cryptography and artificial intelligence integrations.

Entropy went from custody solution to crypto automation Entropy initially positioned itself as a decentralized alternative to centralized crypto custodians such as Fireblocks and Coinbase when it launched in 2021. 

Pacific, who identifies as transgender and has described themselves as an anarchist, founded the company after working at cryptography network NuCypher, where they developed expertise in advanced cryptographic techniques. 

The company raised $1.95 million in a pre-seed round in January 2022, followed by the $25 million seed round led by a16z in June 2022. Other investors included Coinbase Ventures, Robot Ventures, Dragonfly Capital, Ethereal Ventures, Variant and Inflection, as well as angel investors Naval Ravikant, Sabrina Hahn and James Prestwich.

At the time of its fundraising, Pacific, a self-taught cryptographer, reportedly stated that the company did not yet have a defined business model but was focused on building technology that would allow users to maintain control over their digital assets while benefiting from advanced cryptographic security.

However, the company appears to have struggled to find product-market fit as it pivoted to developing a crypto automation platform. 

After seeking feedback on this iteration, Pacific said it became clear the business model “wasn’t venture scale”, leaving a choice between finding “a creative way forward or pivot once more.”

What is Pacific’s next move? In the same post that announced Entropy’s winding down, Pacific said they would be leaving the cryptocurrency industry entirely and moving into pharmaceutical research, specifically focusing on hormone delivery innovations for menopausal women and transgender women undergoing hormone replacement therapy.

“My time in crypto might be coming to an end, as I feel myself drawn specifically into pharmaceuticals,” Pacific wrote, noting plans to validate research on new estradiol drug formulations while studying biophysics and organic chemistry. Pacific wrote that “a career is a practice: the goal is not the destination, but the journey of innovation.”

Pacific thanked a16z and general partner Guy Wuollet for their support throughout the wind-down process, calling their guidance invaluable.

The decision to return capital is not a first in the startup world, but it is also uncommon. Some founders may seek more funds to try out more pivots, seek acquisition, or operate until all the funds dry up. 

However, raising funds in 2025 may have proven difficult, as data showed that most investors cut checks, both big and small, for mostly late-stage startups. Early-stage startups and those who had not gained enough traction or market fit were mostly overlooked.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.

Explore how sector focus, risk profiles, and dividend yields set these two popular ETFs apart for different investment goals.

The Vanguard Value ETF (VTV 0.59%) is designed for investors seeking to track the performance of large-cap U.S. value stocks, concentrating on established companies with lower price-to-book ratios.

The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM 0.04%) aims to mirror the broader U.S. equity market, spanning large-, mid-, and small-cap stocks. This comparison unpacks how these differences play out in cost, performance, risk, and portfolio makeup.

Snapshot (cost & size)MetricVTVSPTMIssuerVanguardSPDRExpense ratio0.04%0.03%1-yr return (as of Jan. 25, 2026)11.48%12.91%Dividend yield2.05%1.13%AUM$218 billion$12 billionBeta (5Y monthly)0.781.02Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

SPTM is slightly more affordable than VTV with a lower expense ratio, while VTV delivers a much higher dividend yield that may appeal to income-focused investors.

Performance & risk comparisonMetricVTVSPTMMax drawdown (5 y)-17.03%-24.15%Growth of $1,000 over 5 years$1,622$1,765What's insideSPTM tracks a broad U.S. equity index and holds 1,510 stocks, providing exposure across all market caps and sectors.

Its portfolio is heavily weighted toward technology, making up 34% of assets, followed by financial services at 13% and consumer cyclical at 11%. The top holdings are Nvidia, Apple, and Microsoft. The fund has been operating for more than 25 years, offering a long track record for evaluation.

VTV, in contrast, concentrates on 312 large-cap value stocks, with sector exposure led by financial services at 25%, healthcare at 16%, and industrials at 13%. Its largest positions are JPMorgan Chase, Berkshire Hathaway, and Exxon Mobil.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsSPTM and VTV can both be fantastic investments, and determining the right choice for your portfolio will depend on what you’re looking to achieve with an ETF.

SPTM provides broad exposure to the overall market. While it is tech-heavy, reflecting the market’s tilt toward tech giants, it includes stocks from companies of all sizes across all sectors.

VTV, on the other hand, focuses exclusively on large-cap value stocks. Value stocks are those from established companies that are generally seen as being overlooked by investors. These stocks may experience slower growth, but they also tend to be more stable with greater dividend income potential.

Between these two ETFs, VTV offers a lower beta and a milder max drawdown, suggesting smaller price fluctuations and less volatility overall. But SPTM is the higher performer, delivering higher one- and five-year total returns.

Investors seeking stability and consistent dividend income may prefer VTV’s large-cap value approach. If you’re looking for increased diversification with access to stocks from all corners of the market, however, SPTM might better fit the bill.

JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has positions in Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

By Reuters

January 25, 202610:20 PM UTCUpdated ago

The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren Purchase Licensing Rights, opens new tab

HOUSTON, Jan 25 (Reuters) - Baker Hughes (BKR.O), opens new tab on Sunday reported an 11% rise in adjusted profit for the fourth quarter as demand for its gas technology equipment and services more than offset weakness in its oilfield services and equipment.

Adjusted net income attributable to Baker Hughes was $772 million, or 78 cents per share, in the three months ended December 31, up from $694 million, or 70 cents per share, a year earlier.

Sign up here.

Reporting by Arathy Somasekhar in Houston; Editing by David Gregorio

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

Key differences in fees, sector mix, and yield shape how SCHE and EEM fit into a diversified emerging markets portfolio.

The Schwab Emerging Markets Equity ETF (SCHE +0.46%) stands out for its lower cost and higher yield, while the iShares MSCI Emerging Markets ETF (EEM +0.63%) brings a longer history and slightly heavier tech exposure to the table.

Both SCHE and EEM target broad emerging markets equity exposure, but they go about it with different priorities. This comparison lays out how their costs, sector weights, performance, and risk profiles stack up for investors weighing which approach may fit better in a diversified portfolio.

Snapshot (cost & size)MetricSCHEEEMIssuerSchwabISharesExpense ratio0.07%0.72%1-yr return (as of 2026-01-22)28.4%37.9%Dividend yield2.9%2.2%Beta0.990.74AUM$12.0 billion$25.1 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

SCHE is much more affordable, charging just 0.07% in management fees compared to EEM’s 0.72%, a difference that could compound over time. SCHE also offers a higher recent dividend yield, which may appeal to income-focused investors.

Performance & risk comparisonMetricSCHEEEMMax drawdown (5 y)-35.70%-39.82%Growth of $1,000 over 5 years$1,036$1,044What's insideEEM tracks large- and mid-cap companies across emerging markets, with a slight tilt toward technology (30%) over SCHE (22%). With 1,214 holdings, EEM is less diversified by number of stocks, but it commands the largest assets under management (AUM) in the category and boasts nearly 23 years on the market (the fund’s inception date is April 2003). Its top positions include Taiwan Semiconductor Manufacturing (TSM +2.21%), Tencent Holdings (TCEHY +0.54%), and Samsung Electronics (005930.KS), representing a significant portion of the fund’s assets (21.5% for those top three holdings alone).

SCHE also leans heavily on technology and financials, but holds over 2,100 stocks, making it more diversified by company count. Its top holdings feature Taiwan Semiconductor Manufacturing, Tencent, and Alibaba Group(BABA 2.23%), and comprise nearly 22% of its assets. However, with less exposure to tech stocks, the fund offers broader industry diversification.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsEEM and SCHE enable anyone to passively invest in emerging markets. In many regards, these funds are very similar. They hold more than 1,000 emerging market stocks. While they hold a wide variety of companies, their top 10 holdings are very similar. Both have large positions in semiconductor giant Taiwan Semiconductor and meaningful exposure to leading Chinese internet companies. They also provide similar dividend yields. While SCHE’s is higher over the last 12 months at 2.9%, EEM’s isn’t all that much lower at 2.2%.

The big difference between these funds lies in their expense ratios. EEM’s 0.72% ratio is 10 times higher than SCHE’s 0.07% annual management fee. As such, investors are paying much more for EEM for very similar exposure to emerging markets. That higher expense could cause this fund’s performance to lag its rival in the future.

Given all this, investors might want to consider the cheaper option and invest in SCHE rather than EEM to add emerging markets exposure to their portfolio.

Explore how these two ETFs balance diversification, sector focus, and income to address different investment goals.

The Schwab U.S. Broad Market ETF (SCHB 0.15%) offers broader market exposure and a tech emphasis, while the Vanguard Value ETF (VTV 0.60%) focuses on large-cap value stocks, with a higher yield and lower volatility—two distinct approaches for different investor priorities.

Both the Schwab U.S. Broad Market ETF (SCHB) and the Vanguard Value ETF (VTV) are popular low-cost index funds, but their goals and construction differ. SCHB tracks the entire U.S. stock market, capturing growth and value stocks of all sizes, while VTV zeroes in on large-cap value companies. This comparison highlights the trade-offs in diversification, return profile, and sector exposure.

Snapshot (cost & size)MetricVTVSCHBIssuerVanguardSchwabExpense ratio0.04%0.03%1-yr return (as of 2026-01-23)15.3%16.9%Dividend yield2.0%1.1%AUM$217.8 billion$38.9 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

SCHB is slightly more affordable on fees, but VTV offers a higher payout for income-focused investors.

Performance & risk comparisonMetricVTVSCHBMax drawdown (5 y)(17.04%)(25.36%)Growth of $1,000 over 5 years$1,622$1,697What's insideSCHB holds 2,401 stocks spanning the entire U.S. market, with a pronounced tilt toward technology (33%), followed by financial services (14%) and consumer cyclicals (11%). Its top positions — Nvidia(NVDA +1.60%), Apple(AAPL 0.07%), and Microsoft(MSFT +3.45%)— showcase its growth bias. The fund has over 17% of its net assets in those three tech giants alone.

VTV, by contrast, concentrates on large-cap value, emphasizing financial services (23%), healthcare (15%), and industrials (17%). Its leading holdings — JPMorgan Chase(JPM 1.95%), Berkshire Hathaway(BRK.B 1.14%), and Exxon Mobil(XOM +0.94%)— reflect classic value themes. It also has much less exposure to its top holding, as those three only represent about 8% of its net assets. With 331 holdings and over $217.8 billion in assets under management, VTV is one of the largest, most liquid U.S. equity ETFs.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsSCHB and VTV offer investors two different paths. SCHB offers simple, broad market exposure (over 2,500 stocks) for a rock-bottom cost. It can be an anchor holding for any portfolio simply seeking market exposure. Even with its broad exposure, it tilts heavily towards tech stocks because they now comprise a meaningful share of the market. It also has a slightly higher fee (its expense ratio is still ultra-low compared to other ETFs) and a lower dividend yield (due to its tech-sector concentration).

VTV takes a more thematic approach. It focuses specifically on large-cap value stocks. These companies tend to be slower-growing and higher-yielding. These factors help reduce this fund’s risk profile.

In the end, the choice is between growth and value. If you want higher capital appreciation potential, SCHB is the way to go, while lower risk returns are more likely in VTV.

JPMorgan Chase is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Apple, Berkshire Hathaway, and JPMorgan Chase and has the following options: short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The AI hardware market is heating up with mounting competition. Is Nvidia still the leader of the industry?

When you're talking about the biggest stock market stories of 2025, Nvidia (NVDA +1.53%) is a name that keeps coming up. The company has been one of the biggest winners of the artificial intelligence (AI) boom.

The company's hardware, its graphics processing units (GPUs), have become synonymous with AI. Many of the most advanced programs run on Nvidia chips -- so many, in fact, that Nvidia has achieved a market share of 85%.

Nvidia is nearly a monopoly on its own with market control like that. But there are competitors emerging, namely Advanced Micro Devices (AMD +2.29%) and Qualcomm (QCOM 1.25%).

AMD holds 7% market share and growing, while Qualcomm has introduced some new chips aimed at lower-end AI users who don't need the computing horsepower Nvidia's chips are packing.

So, is Nvidia going to remain the leader of the AI hardware market? 

Heavy is the head that wears the crown While there are many risks to being on top -- the biggest one being that everyone is gunning for your spot -- I don't think Nvidia is at any risk of being toppled anytime soon.

Let's start with the fact that even though AMD is growing its market share, it only grew by 0.8% in the third quarter of 2025 to hit 7%. So it is a rival, but a slow-growing rival.

While Qualcomm's chips are sure to be a disruption in the market, one is due to come onto the market this year and the second in 2027. From there, it will take time to truly assess their effect on the AI hardware market.

Image source: Getty Images.

It's also important to note that while there are competitors, Nvidia is the go-to choice for all the biggest AI software developers. OpenAI is a major user of Nvidia hardware, and in September, it announced intent to deploy another 10 gigawatts of Nvidia chips . Microsoft (MSFT +3.45%) is also a major buyer.

Despite the 1,252% gain over the past five years and its $4.45 trillion market cap, Nvidia is still growing and growing quickly.

Today's Change

(

1.53

%) $

2.83

Current Price

$

187.67

For its most recent quarter, Q3 2025, Nvidia recorded revenue of $57 billion, up 62% year over year. In that same quarter, net income surged 65% year over year, and diluted earnings per share (EPS) grew by 67%.

The company also grew its cash reserves from $43.2 billion on Jan. 26, 2025 to $60.6 billion as of Oct. 26, 2025. That means Nvidia could pay off the entirety of its $10.82 billion in debt almost six times over.

Nvidia is also sitting on a gross profit margin of 70% and a net income margin of 53%, so to say it's profitable would perhaps be the understatement of the century.

Finally, because of its size and influence on the broader market, Wall Street watches with bated breath every time Nvidia releases earnings data. Fortunately for Wall Street, the company has a habit of beating earnings and has done so in each of the last five quarters.

So, will the juggernaut that is Nvidia be toppled from its throne anytime soon? It's not impossible, but I'd say it's a pretty safe bet that Nvidia's reign will continue for the foreseeable future. After all, it's good to be king.

James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Qualcomm. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Matt Britton, author of Generation AI, thinks OpenAI's ad moves could reshape the entire industry. Meta Platforms (META) and Alphabet (GOOGL) are a duopoly in the ad space, with Amazon (AMZN) the likeliest retail destination, he says.

These top dividend stocks should continue increasing their already lucrative payouts.

The S&P 500's dividend yield is around 1.2% these days, which is near its all-time low. However, that doesn't mean there aren't attractive income opportunities today. Several high-quality companies currently offer dividend yields that are much higher.

Here are three safe dividend stocks with yields of at least 3% that you can confidently buy right now.

Image source: Getty Images.

Brookfield Infrastructure Brookfield Infrastructure's (BIPC +0.78%)(BIP +1.61%) dividend yield is around 3.8% these days. The global infrastructure operator has a diverse portfolio of critical infrastructure businesses across the utilities, transportation, energy midstream, and data sectors. Most of those businesses generate durable cash flows backed by long-term contracts or government-regulated rate structures (85% of its funds from operations) that either index rates to inflation or protect its earnings from its impact. As a result, Brookfield generates steadily rising cash flow to support its dividend.

The company aims to pay out 60% to 70% of its stable cash flows in dividends, retaining the remainder to reinvest in expanding its operations. Brookfield currently has about $7.8 billion in capital projects in its backlog, which it expects to complete over the next two to three years. The bulk is in its data segment (nearly $6 billion) and includes its investments in a U.S. semiconductor foundry and multiple global data center projects.

Today's Change

(

0.78

%) $

0.35

Current Price

$

45.54

Brookfield Infrastructure also acquires new businesses. It has secured $1.5 billion of deals over the past year, including investments in a U.S. refined products pipeline system, a bulk fiber network, and an advanced fuel cell system to power data centers. The company's growth catalysts support its expectations of growing its funds from operations by more than 10% annually, which should drive dividend increases of 5% to 9% each year. Brookfield has grown its payout at a 9% compound annual rate since 2009.

ExxonMobil ExxonMobil (XOM +1.00%) has a dividend yield of just over 3%. The global oil and gas giant supports its dividend with a large-scale, globally integrated business. That helps mute some of the impact of oil price volatility on its earnings. Exxon also has a fortress balance sheet.

Today's Change

(

1.00

%) $

1.33

Current Price

$

134.97

The oil and gas giant is already the most profitable company in the industry. It expects to make even more money in the future. Exxon anticipates delivering $25 billion in earnings growth and $35 billion in cash flow growth, compared to 2024's levels, on a constant-price, constant-margin basis by 2030. It aims to deliver that incremental profitability through a combination of structural cost savings and high-return growth capital projects.

Exxon's plan would enable it to generate about $145 billion in cumulative surplus cash over the next five years at an average oil price of around $65 per barrel. That would give the oil company plenty of fuel to continue increasing its dividend, which it has done for a sector-leading 42 consecutive years.

Prologis Prologis (PLD +0.38%) has a 3.2% dividend yield. The real estate investment trust (REIT) backs its dividend with the stable cash flows produced by the long-term leases securing its properties. Most of its leases contain annual rental escalation clauses, enabling it to earn steadily rising rental income.

Today's Change

(

0.38

%) $

0.48

Current Price

$

127.15

The REIT has a conservative dividend payout ratio and one of the sector's strongest balance sheets. That gives it the financial flexibility to expand its portfolio. It invests in development projects and makes acquisitions.

Prologis primarily invests in logistics properties. However, it sees a significant opportunity to leverage its vast land bank, its experience installing solar panels and battery storage at its sites, and its expertise in constructing building shells to develop data centers. These growth drivers should enable Prologis to continue increasing its dividend. It has grown its payout at a 13% compound annual rate over the last five years, well above the S&P 500's 5% average.

High-quality dividend stocks Brookfield Infrastructure, ExxonMobil, and Prologis all pay dividends yielding more than 3% backed by strong businesses and financial profiles. They also have excellent dividend growth track records, which should continue. Those features make them safe dividend stocks you shouldn't hesitate to buy right now.

This chip stock is another contrarian play from Tepper.

Billionaire David Tepper loves a good turnaround story. He made his fortune as a master of investing in distressed debt through his hedge fund, Appaloosa Management. The value-focused contrarian approach Tepper takes with his investments has continued to serve him well as he expanded it to equities.

True to form, the fund's most recent 13F filing with the SEC showed significant sales of stocks that have seen their share prices soar. These stocks, which have largely capitalized on the artificial intelligence (AI) trend, include Micron Technology (MU +0.52%), Oracle (ORCL 0.57%), and Intel (INTC 17.15%).

With the profits, Tepper reinvested in another AI stock that hasn't quite taken off yet, but that could become a key supplier of AI chips across various form factors over the next few years. While its stock is up 31,000% from its initial public offering (IPO) in the early '90s, it's traded sideways for the last two years. Here's what may have pushed Tepper to make the shift in his portfolio.

Image source: Getty Images.

Taking some big wins Tepper likely made a significant gain on his Intel purchase in just a few months. Its assets may have looked undervalued in the second quarter. Despite soaring semiconductor demand, Intel had seen its stock fall, as it struggled to attract customers to its foundry business and produce compelling technological gains. Tepper's purchase came as the stock had fallen considerably from its late 2023 and early 2024 high price.

In August, however, the U.S. government announced the purchase of a stake in Intel, sending the share price higher. With government backing, Intel looked to be on solid footing, and it may have a longer runway to find a significant customer for its next-gen semiconductor manufacturing process. The stock instantly spiked, and Tepper was smart to take gains. That said, the stock has continued climbing in 2026. It's now back near its 2023 high. At its current valuation and with significant uncertainty, it looks like a stock to avoid.

Today's Change

(

-17.15

%) $

-9.31

Current Price

$

45.01

Likewise, Tepper started investing in Oracle in late 2023, perhaps seeing an underappreciated AI infrastructure company. While the stock made steady gains through 2024, leading him to take a large portion of his investment off the table in early 2025, the stock skyrocketed higher in the second and third quarters last year.

Strong earnings results and momentum in its cloud infrastructure business drove the stock higher. A $300 billion contract with OpenAI pushed the company's value toward $1 trillion in the third quarter, which may have been the catalyst for Tepper to sell the last of his shares. The investor excitement quickly wore off, however, as the reality of Oracle's current balance sheet makes its AI data center build-out relatively risky. It's closely tied to OpenAI's success and its ability to pay for compute, as it takes on significant debt to build the infrastructure it needs.

Today's Change

(

-0.57

%) $

-1.02

Current Price

$

177.16

Micron has been a longtime holding for Tepper. At one point during the semiconductor shortage of 2020 and 2021, the stock accounted for roughly 10% of his portfolio. After Appaloosa trimmed the position, it accounted for just over 1% of the fund's equities as of the end of the third quarter.

The company pre-announced third-quarter earnings, demonstrating considerable pricing power for its memory chips, a crucial component of GPUs. The news sent the stock higher and likely pushed Tepper to take some more gains off the table. The stock has continued to run higher amid the NAND chip shortage and industrywide hesitancy to build out capacity. However, the cyclical stock could face a severe downturn in profitability over time as supply of its commodity-like product moves in line with demand. As such, it makes sense for Tepper to slowly take some of the stock off the table.

The next AI chipmaker Tepper finds intriguing One of Tepper's biggest tech stock purchases in the third quarter isn't a chipmaker most typically think of when they think of artificial intelligence. But that may be exactly what attracted Tepper to the company in the first place. Qualcomm (QCOM 1.25%) is quietly well-positioned to capitalize on the proliferation of artificial intelligence.

While it's primarily known for its wireless connectivity patents and baseband chipsets, which are found in almost every smartphone in the world, Qualcomm also has a growing business of other chip designs.

Most prominently, its high-end Snapdragon processors can be found in many Android devices. It also makes chips for automotive connectivity and processing, as well as a burgeoning PC business. In October, the company announced a new set of AI chips to be released in 2026 and 2027, designed specifically for large language model inference.

Today's Change

(

-1.25

%) $

-1.98

Current Price

$

155.82

Qualcomm's non-baseband chip sales could grow quickly as companies develop more use cases for AI and build smaller language models that can run on devices rather than in massive data centers. The latter, on-device AI, could spark demand for more high-end smartphones, pushing device makers to use Snapdragon processors. Meanwhile, Qualcomm's AI200 and AI250 rack-level AI inference solutions could provide more cost-effective solutions at the data center level.

Qualcomm's position in the automotive industry could also get a boost as more advanced AI features are introduced in cars. It's already growing fast, with segment revenue climbing 36% in 2025, but it's playing the role of the incumbent in that industry, as other chipmakers look to take market share as computing needs for cars advance.

While Qualcomm is losing a major baseband chip customer over the next few years, the strength of the rest of its business and the tailwind of AI should enable it to produce steady revenue growth. And once that headwind is behind it, it could see revenue growth and profits accelerate. With the stock trading at a forward P/E of just 13, the shares look very inexpensive, making it a smart way to play the growing use of artificial intelligence across the cloud and personal devices.

Fourth-quarter highlights

Orders of $7.9 billion, including $4.0 billion of IET orders.Record RPO of $35.9 billion, including record IET RPO of $32.4 billion.Revenue of $7.4 billion, flat year-over-year.Attributable net income of $876 million.GAAP diluted EPS of $0.88 and adjusted diluted EPS* of $0.78.Adjusted EBITDA* of $1,337 million, up 2% year-over-year.Cash flows from operating activities of $1,662 million and free cash flow* of $1,341 million.
Full-year highlights

Orders of $29.6 billion, including record $14.9 billion of IET orders.Revenue of $27.7 billion, flat year-over-year.Attributable net income of $2,588 million.GAAP diluted EPS of $2.60 and adjusted diluted EPS* of $2.60.Adjusted EBITDA* of $4,825 million, up 5% year-over-year.Cash flows from operating activities of $3,810 million and free cash flow* of $2,732 million. HOUSTON and LONDON, Jan. 25, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the fourth-quarter and full-year 2025.

"Baker Hughes delivered exceptional performance in 2025. We continued to execute at a high level, delivering another quarter of strong results contributing to a record full‑year Adjusted EBITDA. This achievement demonstrates sustained momentum from our Business System, active portfolio management, and positive performance in IET, which more than offset continued macro‑driven softness in OFSE, where margins remained resilient through disciplined cost actions," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

"IET delivered strong fourth‑quarter bookings of $4 billion, contributing to a record full‑year total of $14.9 billion, exceeding the high end of our guidance range. IET achieved a record backlog of $32.4 billion at year‑end, and book-to-bill exceeded 1x. For the second consecutive year, non-LNG equipment orders represented approximately 85% of total IET orders, which highlights the end‑market diversity and versatility of our IET portfolio."

"Following our strong free cash flow performance in prior years, we generated record annual free cash flow of $2.7 billion in 2025, enhanced by working capital efficiency and customer down payments."

"Looking ahead, we expect IET orders to remain at robust levels, supported by continued momentum in LNG, a stronger year of FPSO and gas infrastructure awards, and sustained strength for power systems. Against this favorable backdrop, we project similar levels of organic IET orders in 2026. In addition, we anticipate overall organic Adjusted EBITDA growth in the mid-single digits range, with IET expanding margins to our 20% target and OFSE remaining relatively flat."

"As the Company moves into Horizon Two(1), our recent portfolio actions are positioning Baker Hughes to evolve into a stronger, more industrialized energy solutions company. This evolution is underpinned by an increasingly production-oriented business mix and a differentiated lifecycle portfolio, which is driving reduced cyclicality and enhanced cash flow durability."

"I’d like to thank the entire Baker Hughes team for consistently delivering outstanding results. As we look to the future, we are energized by the opportunities that lie ahead and remain committed to our customers and employees, with a disciplined focus on creating long-term, sustainable value for our shareholders," concluded Simonelli.

* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

(1) Horizon Two represents 2026-2028.

 Three Months Ended Variance(in millions except per share amounts)December 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearOrders$        7,886        $        8,207        $        7,496         (4)%5%Revenue         7,386                 7,010                 7,364         5%—%Net income attributable to Baker Hughes         876                 609                 1,179         44%(26)%Adjusted net income attributable to Baker Hughes*         772                 678                 694         14%11%Adjusted EBITDA*         1,337                 1,238                 1,310         8%2%Diluted earnings per share (EPS)         0.88                 0.61                 1.18         43%(25)%Adjusted diluted EPS*         0.78                 0.68                 0.70         14%12%Cash flow from operating activities         1,662                 929                 1,189         79%40%Free cash flow*         1,341                 699                 894         92%50% * Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.

Quarter Highlights

Key awards and technology achievements

Industrial & Energy Technology ("IET") secured several important awards to supply critical liquefaction equipment for LNG projects in the U.S., supporting the reliable delivery of natural gas and LNG required to meet global energy demand. Gas Technology Equipment ("GTE") received an award for gas turbine and refrigerant compressor technology for Train 5 of NextDecade's Rio Grande LNG facility. GTE will also deliver six high efficiency, aeroderivative LM9000 gas turbines to drive its centrifugal compressors for the liquefaction process at Commonwealth LNG's export facility. Additionally, Baker Hughes was selected by Glenfarne as its supplier for main refrigerant compressors for the LNG terminal and power generation equipment for Alaska LNG's North Slope gas treatment plant once FID is reached.

IET demonstrated continued strength within its power systems solutions, receiving several awards to support data center infrastructure and industrial manufacturing. Baker Hughes received an award to supply over 40 BRUSH™ generators for gas-fired utility-scale power plants, which will collectively deliver approximately 7 GW of reliable power and enhance grid resilience, highlighting the critical role our technologies play in strengthening U.S. energy infrastructure. IET was also awarded two significant contracts from Tecnimont (part of MAIRE group) to provide electric motor driven compression and power generation solutions for the Tengiz onshore Gas Separation Complex in Kazakhstan, one of the country's most critical energy infrastructure projects, owned and operated by KMG PetroChem, 100% subsidiary of the National Company KazMunayGas.

Aalo Atomics also selected Baker Hughes to supply a 10 MWe steam turbine generator set and ancillaries for the conventional island of its small‑scale Small Modular Reactor ("SMR") demonstration plant in North America — among the first SMR facilities expected to run in nuclear mode with a steam turbine generating power. This demo is a key milestone toward regulatory approval of 50 MWe "Aalo Pods," with power planned for an onsite data center.

Further demonstrating the durability of IET's lifecycle model, the Company was awarded several aftermarket services contracts. Cheniere extended its long-term service agreement to cover Trains 8 and 9 of its Corpus Christi liquefaction facility in Texas. This comprehensive multi-year agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery. Also in the U.S., the Company secured an agreement with NextDecade for iCenter™ remote monitoring and diagnostics to support the performance of critical equipment for Trains 1, 2 and 3 of the Rio Grande LNG project.

Our digital portfolio continued to scale, led by strong Cordant™ software awards. Following the successful deployment of Asset Management software and services, Yara will also leverage Cordant™ Asset Health as a service across seven new facilities in 2026. Baker Hughes will also support enterprise-level digital transformation for China National Petroleum Corporation Kunlun Digital, leveraging Cordant™ Asset Performance Management to enhance reliability and performance across several plants. Finally, Braskem will establish an Asset Strategy Center of Excellence in Brazil, utilizing Cordant™ Asset Strategy software alongside Baker Hughes' global network of reliability experts to optimize maintenance strategies and improve operational efficiency across its petrochemical plants.

Oilfield Services & Equipment ("OFSE") experienced a strong quarter for Production Solutions awards, securing nearly $1 billion in contracts in the Middle East. OFSE received a multi-year contract from Kuwait Oil Company to deploy advanced artificial lift systems and an award from Petroleum Development Oman to supply electrical submersible pumps with associated services across approximately 1,400 wells. Both awards incorporate the Leucipa™ automated field production solution to improve reliability and reduce nonproductive time. Also, the Company was awarded a contract from ADNOC to deliver AccessESP™ retrievable electrical submersible pumping systems in the offshore Umm Shaif Field.

OFSE saw significant uptake of its rotary steerable systems with Pluspetrol in Argentina, securing multiple Well Construction awards to help the country maximize its energy resources and develop the Vaca Muerta formation. Baker Hughes will provide Lucida™ and AutoTrak™ RSS technologies to enable deeper, longer wells drilled in a single run.

In addition, ExxonMobil Guyana awarded the Company a significant contract extension to supply advanced completions technologies supporting offshore oil and gas development.

In Sub-Saharan Africa, Eni awarded Baker Hughes a multi-year frame agreement for subsea production systems and associated services for its Coral North LNG project offshore Mozambique. The scope includes subsea trees, controls, manifolds, distribution and topsides, supporting the development of long-cycle offshore gas infrastructure.

Consolidated Financial Results

Revenue for the quarter was $7,386 million, an increase of $376 million, or 5% sequentially, and up $22 million year-over-year. IET delivered year-over-year growth, partially offset by lower revenue in OFSE.

The Company's total book-to-bill ratio in the fourth quarter of 2025 was 1.1; the IET book-to-bill ratio was 1.1.

Net income as determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") for the fourth quarter of 2025 was $876 million. Net income increased $266 million, or 44% sequentially, and decreased $303 million, or 26% year-over-year.

Adjusted net income (a non-GAAP financial measure) for the fourth quarter of 2025 was $772 million, which excludes adjustments totaling $104 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the fourth quarter of 2025 was up $95 million, or 14% sequentially, and up $79 million, or 11% year-over-year.

Depreciation and amortization for the fourth quarter of 2025 was $327 million.

Adjusted EBITDA (a non-GAAP financial measure) for the fourth quarter of 2025 was $1,337 million, which excludes adjustments totaling $425 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the fourth quarter was up $99 million, or 8% sequentially, and up $27 million, or 2% year-over-year.

The sequential increase in Adjusted EBITDA was primarily driven by volume, and overall productivity.

The year-over-year increase in Adjusted EBITDA was primarily driven by overall productivity, cost out initiatives, price, and FX, largely offset by change in mix, lower volume, and inflation.

Other Financial Items

Remaining Performance Obligations ("RPO") in the fourth quarter of 2025 ended at $35.9 billion, an increase of $0.6 billion from the third quarter of 2025. OFSE RPO was $3.5 billion, up $0.3 billion sequentially, and IET RPO was $32.4 billion, up $0.4 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $11.6 billion and $16.1 billion, respectively.

Income tax benefit in the fourth quarter of 2025 was $359 million.

Other (income) expense, net in the fourth quarter of 2025 was $166 million, primarily related to change in fair value of equity securities of $74 million, and transaction related costs of $49 million incurred in connection with business disposals and acquisitions.

GAAP diluted earnings per share was $0.88 for the fourth quarter of 2025. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.78. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

Cash flow from operating activities was $1,662 million for the fourth quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $1,341 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

Capital expenditures, net of proceeds from disposal of assets, were $321 million for the fourth quarter of 2025, of which $206 million was for OFSE and $103 million was for IET.

Results by Reporting Segment

The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

Oilfield Services & Equipment

(in millions)Three Months Ended VarianceSegment resultsDecember 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearOrders$3,862 $4,068 $3,740  (5)%3%
Revenue$3,572 $3,636 $3,871  (2)%(8)%EBITDA$647 $671 $755  (4)%(14)%EBITDA margin 18.1% 18.5% 19.5% -0.4pts-1.4pts              (in millions)Three Months Ended VarianceRevenue by Product LineDecember 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearWell Construction$880$954$943 (8)%(7)%Completions, Intervention, and Measurements 944 945 1,022 —%
(8)%Production Solutions 973 966 974 1%
—%
Subsea & Surface Pressure Systems 775 771 932 1%
(17)%Total Revenue$3,572$3,636$3,871 (2)%(8)%        (in millions)Three Months Ended VarianceRevenue by Geographic RegionDecember 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearNorth America$943$980$971 (4)%(3)%Latin America 613 603 661 2%
(7)%Europe/CIS/Sub-Saharan Africa 624 599 740 4%
(16)%Middle East/Asia 1,392 1,454 1,499 (4)%(7)%Total Revenue$3,572$3,636$3,871 (2)%(8)%       North America$943$980$971 (4)%(3)%International$2,629$2,656$2,900 (1)%(9)% EBITDA excludes depreciation and amortization of $252 million, $221 million, and $229 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

OFSE orders of $3,862 million for the fourth quarter of 2025 decreased by $206 million, or 5% sequentially. Subsea and Surface Pressure Systems orders were $1,067 million, down $123 million, or 10% sequentially, and up $265 million, or 33% year-over-year.

OFSE revenue of $3,572 million for the fourth quarter of 2025 was down $63 million, or 2% sequentially, and down $298 million, or 8% year-over-year.

North America revenue was $943 million, down $37 million, or 4% sequentially. International revenue was $2,629 million, down $26 million, or 1% sequentially, with a decrease in Middle East/Asia, partially offset by an increase in Europe/CIS/Sub-Saharan Africa, and Latin America.

Segment EBITDA for the fourth quarter of 2025 was $647 million, a decrease of $25 million, or 4% sequentially. The sequential decrease in EBITDA was a result of overall lower volume, partially offset by cost out initiatives.

Industrial & Energy Technology

(in millions)Three Months Ended VarianceSegment resultsDecember 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearOrders$4,024 $4,139 $3,756  (3)%7%
Revenue$3,814 $3,374 $3,492  13%
9%
EBITDA$761 $635 $639  20%
19%
EBITDA margin 20.0% 18.8% 18.3% 1.1pts1.6pts              (in millions)Three Months Ended VarianceOrders by Product LineDecember 31,
2025September 30, 2025December 31,
2024 SequentialYear-over-
yearGas Technology Equipment$1,785$2,174$1,865 (18)%(4)%Gas Technology Services 974 896 902 9%
8%
Total Gas Technology 2,759 3,070 2,767 (10)%—%
Industrial Products 603 481 515 26%
17%
Industrial Solutions 352 336 320 4%
10%
Total Industrial Technology 955 817 835 17%
14%
Climate Technology Solutions 310 253 154 23%
FTotal Orders$4,024$4,139$3,756 (3)%7%
        (in millions)Three Months Ended VarianceRevenue by Product LineDecember 31,
2025September 30,
2025December 31,
2024 SequentialYear-over-
yearGas Technology Equipment$1,852$1,687$1,663 10%
11%
Gas Technology Services 881 803 796 10%
11%
Total Gas Technology 2,733 2,490 2,459 10%
11%
Industrial Products 547 511 548 7%
—%
Industrial Solutions 304 288 282 5%
8%
Total Industrial Technology 851 799 830 6%
3%
Climate Technology Solutions 229 84 204 F12%
Total Revenue$3,814$3,374$3,492 13%
9%
EBITDA excludes depreciation and amortization of $69 million, $55 million, and $56 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.

IET orders of $4,024 million for the fourth quarter of 2025 increased by $269 million, or 7% year-over-year. The increase was driven by continued strength in Climate Technology Solutions, Industrial Technology, and Gas Technology Services.

IET revenue of $3,814 million for the fourth quarter of 2025 increased $321 million, or 9% year-over-year. The increase was driven by Gas Technology Equipment, up $189 million, or 11% year-over-year, Gas Technology Services, up $86 million, or 11% year-over-year.

Segment EBITDA for the quarter was $761 million, an increase of $121 million, or 19% year-over-year. The year-over-year increase in EBITDA was driven by productivity, volume, price, and FX, partially offset by inflation.

2025 Total Year Results    (in millions)Twelve Months Ended Variance December 31,
2025December 31,
2024 Year-over-
yearOilfield Services & Equipment$14,714$15,240 (3)%
Industrial & Energy Technology 14,871 13,000 14%
Orders$29,585$28,240 5%
     Oilfield Services & Equipment$14,324$15,628 (8)%
Industrial & Energy Technology 13,409 12,201 10%
Segment Revenue$27,733$27,829 —%
     Oilfield Services & Equipment$2,618$2,881 (9)%
Industrial & Energy Technology 2,482 2,050 21%
Segment EBITDA$5,100$4,931 3%
      Reconciliation of GAAP to non-GAAP Financial Measures

Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted EBITDA margin, defined as adjusted EBITDA divided by revenue; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

 Three Months Ended Twelve Months Ended December 31,September 30,December 31, December 31,(in millions) 2025  2025  2024   2025  2024 Net income attributable to Baker Hughes (GAAP)$876 $609 $1,179  $2,588 $2,979 Net income attributable to noncontrolling interests 11  8  11   36  29 Provision (benefit) for income taxes (359) 204  (398)  253  257 Interest expense, net 61  56  54   222  198 Depreciation & amortization(1) 323  282  291   1,184  1,136 Restructuring(1) 215  —  258   215  260 Inventory impairment 22  —  73   22  73 Change in fair value of equity securities(2) 74  8  (196)  103  (367)Transaction related costs(2) 49  47  —   107  — Other charges and credits(2) 65  24  38   95  26 Adjusted EBITDA (non-GAAP) 1,337  1,238  1,310   4,825  4,591 Corporate costs 79  76  84   318  340 Other (income) / expense not allocated to segments (8) (8) —   (43) — Total Segment EBITDA (non-GAAP)$1,408 $1,306 $1,394  $5,100 $4,931 OFSE 647  671  755   2,618  2,881 IET 761  635  639   2,482  2,050  (1)   For the quarter and year ended December 31, 2025, $4 million of accelerated depreciation expense related to certain PP&E was recorded in "Restructuring" in the consolidated statements of income.

(2)   Change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the consolidated statements of income.

Table 1a reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

 Three Months Ended Twelve Months Ended December 31,September 30,December 31, December 31,(in millions, except per share amounts) 2025  2025  2024   2025  2024 Net income attributable to Baker Hughes (GAAP)$876 $609 $1,179  $2,588 $2,979 Restructuring 215  —  258   215  260 Inventory impairment 22  —  73   22  73 Change in fair value of equity securities 74  8  (196)  103  (367)Transaction related costs(1) 63  54  —   128  — Other adjustments 63  24  30   93  73 Tax adjustments(2) (541) (17) (650)  (566) (663)Total adjustments, net of income tax (104) 69  (485)  (5) (623)Less: adjustments attributable to noncontrolling interests —  —  —   —  — Adjustments attributable to Baker Hughes (104) 69  (485)  (5) (623)Adjusted net income attributable to Baker Hughes (non-GAAP)$772 $678 $694  $2,583 $2,356               Denominator:      Weighted-average shares of Class A common stock outstanding diluted 994  992  999   994  1,001 Adjusted earnings per share - diluted (non-GAAP)$0.78 $0.68 $0.70  $2.60 $2.35  (1)   For the periods ending December 31, 2025 and September 30, 2025, transaction related costs include $14 million and $7 million, respectively, of fees related to the Bridge Facility.

(2)   All periods reflect the tax associated with the other (income) loss adjustments. 4Q'25 and fiscal year 2025 include $309 million related to the net release of valuation allowances for certain deferred tax assets, and $148 million and $145 million, respectively, for tax benefits related to our planned dispositions. 4Q'24 and fiscal year 2024 include $664 million related to the release of valuation allowances for certain deferred tax assets.

Table 1b reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

 Three Months Ended Twelve Months Ended December 31,September 30,December 31, December 31,(in millions) 2025  2025  2024   2025  2024 Net cash flows from operating activities (GAAP)$1,662 $929 $1,189  $3,810 $3,332 Add: cash used for capital expenditures, net of proceeds from disposal of assets (321) (230) (295)  (1,078) (1,075)Free cash flow (non-GAAP)$1,341 $699 $894  $2,732 $2,257         Table 1c reconciles net cash flows from operating activities, which is the most directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

Financial Tables (GAAP)

Condensed Consolidated Statements of Income
(Unaudited)   Three Months Ended(In millions, except per share amounts)December 31,
2025September 30,
2025December 31,
2024Revenue$7,386$7,010 $7,364 Costs and expenses:   Cost of revenue 5,633 5,309  5,670 Selling, general and administrative 636 607  585 Research and development costs 147 146  163 Restructuring 215 —  258 Other (income) expense, net 166 71  (158)Interest expense, net 61 56  54 Income before income taxes 528 821  792 Benefit (provision) for income taxes 359 (204) 398 Net income 887 617  1,190 Less: Net income attributable to noncontrolling interests 11 8  11 Net income attributable to Baker Hughes Company$876$609 $1,179     Per share amounts:  Basic income per Class A common share$0.89$0.62 $1.19 Diluted income per Class A common share$0.88$0.61 $1.18     Weighted average shares:   Class A basic 987 986  990 Class A diluted 994 992  999     Cash dividend per Class A common share$0.23$0.23 $0.21      Condensed Consolidated Statements of Income
(Unaudited)   Year Ended December 31,(In millions, except per share amounts) 2025  2024  2023 Revenue$27,733 $27,829 $25,506 Costs and expenses:   Cost of revenue 21,189  21,346  19,604 Selling, general and administrative 2,387  2,458  2,611 Research and development costs 600  643  651 Restructuring 215  260  313 Other (income) expense, net 243  (341) (544)Interest expense, net 222  198  216 Income before income taxes 2,877  3,265  2,655 Provision for income taxes (253) (257) (685)Net income 2,624  3,008  1,970 Less: Net income attributable to noncontrolling interests 36  29  27 Net income attributable to Baker Hughes Company$2,588 $2,979 $1,943     Per share amounts:   Basic income per Class A common share$2.62 $3.00 $1.93 Diluted income per Class A common share$2.60 $2.98 $1.91     Weighted average shares:   Class A basic 988  994  1,008 Class A diluted 994  1,001  1,015     Cash dividend per Class A common share$0.92 $0.84 $0.78            Condensed Consolidated Statements of Financial Position
(Unaudited)   December 31,(In millions) 2025 2024ASSETSCurrent Assets:  Cash and cash equivalents$3,715$3,364Current receivables, net 6,641 7,122Inventories, net 4,954 4,954All other current assets 3,518 1,771Total current assets 18,828 17,211Property, plant and equipment, less accumulated depreciation 5,326 5,127Goodwill 6,068 6,078Other intangible assets, net 4,097 3,951Contract and other deferred assets 1,620 1,730All other assets 4,942 4,266Total assets$40,881$38,363LIABILITIES AND EQUITYCurrent Liabilities:  Accounts payable$4,579$4,542Short-term and current portion of long-term debt 689 53Progress collections and deferred income 5,904 5,672All other current liabilities 2,705 2,724Total current liabilities 13,877 12,991Long-term debt 5,398 5,970Liabilities for pensions and other postretirement benefits 1,066 988All other liabilities 1,530 1,359Equity 19,010 17,055Total liabilities and equity$40,881$38,363   Outstanding Baker Hughes Company shares:  Class A common stock 987 990      Condensed Consolidated Statements of Cash Flows
(Unaudited)    Three Months
Ended
December 31,Twelve Months Ended
December 31,(In millions) 2025  2025  2024 Cash flows from operating activities:   Net income$887 $2,624 $3,008 Adjustments to reconcile net income to net cash flows from operating activities:   Depreciation and amortization 327  1,188  1,136 Benefit for deferred income taxes (658) (702) (671)Change in fair value of equity securities 74  103  (367)Stock-based compensation cost 50  203  202 Working capital 747  713  7 Other operating items, net 235  (319) 17 Net cash flows provided by operating activities 1,662  3,810  3,332 Cash flows from investing activities:   Expenditures for capital assets (377) (1,273) (1,278)Proceeds from disposal of assets 56  195  203 Proceeds from sale of equity securities —  1  92 Net cash paid for acquisitions (30) (830) — Other investing items, net (42) (137) (33)Net cash flows used in investing activities (393) (2,044) (1,016)Cash flows from financing activities:   Repayment of long-term debt —  —  (143)Dividends paid (227) (910) (836)Repurchase of Class A common stock —  (384) (484)Other financing items, net (31) (188) (64)Net cash flows used in financing activities (258) (1,482) (1,527)Effect of currency exchange rate changes on cash and cash equivalents 11  67  (71)Increase in cash and cash equivalents 1,022  351  718 Cash and cash equivalents, beginning of period 2,693  3,364  2,646 Cash and cash equivalents, end of period$3,715 $3,715 $3,364 Supplemental cash flows disclosures:   Income taxes paid, net of refunds$402 $1,156 $1,040 Interest paid$97 $294 $298            Supplemental Financial Information

Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Monday, January 26, 2026, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: www.investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

Economic and political conditions - the impact of worldwide economic conditions; the impact of inflation and interest rates; the impact of tariffs, including the potential for significant increases in tariffs and changes in trade policy that could affect our supply chain costs, pricing, and customer demand; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks. About Baker Hughes:

Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Investor Relations

Chase Mulvehill
+1 346-297-2561
[email protected]

Media Relations

Adrienne M. Lynch
+1 713-906-8407
[email protected]

While Lucid and Tesla entered similar markets in different ways, the jury remains out regarding whether Lucid's long-term strategy will pay off.

While Tesla (TSLA 0.04%) and Lucid Motors (LCID 3.58%) may have more in common with one another as electric vehicle (EV) makers, they are substantially different businesses right now. Tesla has branched out to increase the number of customer segments it serves and regions it sells into, and has proven it can do so profitably. Lucid hopes to get there one day. Despite the automotive commonalities, the two competitors are approaching a similar market entry scenario in very different ways, with one seemingly doomed to fail.

What's going on? In terms of perspective, Tesla and Lucid seem to again see market potential in a similar way. Both India and Saudi Arabia have low rates of EV adoption, but both markets have an optimistic consumer base and some community or government support to push electric ambitions. That said, how Tesla entered India and how Lucid is settling into Saudi Arabia show they have very different strategies.

Image source: Lucid Motors.

Lucid opened its manufacturing plant in Saudi Arabia in September 2023, as its connection with Saudi Arabia's Public Investment Fund (PIF) deepened and the latter continued to pour capital into the automaker. It currently owns a near 60% stake. Lucid's plant in the region has yet to reach its full potential and has so far been merely partially assembling vehicles, but that changes this year. Lucid's CEO, Marc Winterhoff, confirmed to Bloomberg that the company is on track to begin full-scale production at the Saudi facility in 2026 with plans to ramp up production over the next few years to an annual capacity of 150,000 vehicles in 2029.

It's an opportunity for the company to get its foot in the door of a young market that's being heavily pushed toward electrification. Saudi Arabia's Vision 2030 economic plan aims to reduce its reliance on oil by boosting non-oil GDP, and the country is establishing an automotive export hub on the Red Sea. Already, automakers such as Lucid, Hyundai, BYD, and Tesla have been tempted with tax exemptions and a 0% custom duties for imports in Special Economic Zones (SEZs).

Lucid is betting that investing in production capacity in Saudi Arabia, establishing a brand early, and avoiding potential tariff setbacks will set it up for success in the future. In another market, Tesla is suffering from the consequences of taking a different approach and importing vehicles to India rather than investing in local manufacturing. With Tesla facing steep import duties of up to 110%, the Model Y starts at nearly $70,000 in India, and the company is reportedly offering costly discounts to help clear unsold imports.

Today's Change

(

-3.58

%) $

-0.41

Current Price

$

11.06

What it all means for potential Lucid investors Investors hoping this will be a lucrative move for Lucid would be wise to temper their expectations. This strategic move was driven by a long-term vision with the understanding that the market has low EV penetration right now. While the developing market could be of value to Lucid in the distant future, it's also an important move right now to strengthen the connection between the automaker and its largest stakeholder, Saudi Arabia's PIF. The latter has already invested $8 billion in Lucid since 2018 to support its growth, and maintaining that connection will be critical as the young automaker will almost certainly need more capital in the future.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.

The Merck logo is seen at a gate to the Merck & Co campus in Rahway, New Jersey, U.S., July 12, 2018. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab

Jan 25 (Reuters) - Merck (MRK.N), opens new tab is no longer in discussions to buy cancer drug developer Revolution Medicines (RVMD.O), opens new tab, the Wall Street Journal reported on Sunday.

The talks cooled after the two could not come to an agreement on price, the Journal said, citing people familiar with the matter. The newspaper said it was possible talks could restart or another suitor for Revolution could emerge.

Sign up here.

Reuters could not immediately verify the report. Merck and Revolution Medicines did not immediately respond to Reuters requests for comment outside regular business hours.

The Financial Times reported this month that Merck was in talks to buy Revolution Medicines in a deal valued at $28 billion to $32 billion.

A potential deal with Revolution would have given Merck access to its experimental drug daraxonrasib, which is in late-stage trials and has won a fast-track review voucher from the U.S. Food and Drug Administration.

Revolution has a market capitalization of around $22.7 billion, according to LSEG data.

Reporting by Mihika Sharma in Bengaluru; Editing by Andrew Heavens and David Gregorio

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

, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Bath & Body Works, Inc. (NYSE: BBWI) between June 4, 2024 and November 19, 2025, both dates inclusive (the "Class Period"), of the important March 16, 2026 lead plaintiff deadline.

So What: If you purchased Bath & Body Works securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Bath & Body Works class action, go to https://rosenlegal.com/submit-form/?case_id=50622 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than March 16, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

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 handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. 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, at that time, 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 hundreds of millions 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.

Details of the case: According to the lawsuit, throughout the Class Period, defendants made materially false and/or misleading statements, and that defendants failed to disclose that: (1) Bath & Body Works' strategy of pursuing "adjacencies, collaborations and promotions" was not growing the customer base and/or delivering the level of growth in net sales touted; (2) as Bath & Body Works' strategy of "adjacencies, collaborations and promotions" faltered, it relied on brand collaborations "to carry quarters" and obfuscate otherwise weak underlying financial results; (3) as a result, Bath & Body Works was unlikely to meet its own previously issued financial guidance; and (4) as a result of the foregoing, defendants' positive statements about Bath & Body Works' business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Body & Body Works class action, go to https://rosenlegal.com/submit-form/?case_id=50622 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

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.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

Apple (AAPL), Microsoft (MSFT), and Meta (META) headline a pivotal earnings week, with AI and cloud growth in sharp focus. MSFT's technicals appear favorable ahead of earnings, with AI-driven Azure and a major Air Force contract underpinning growth.

Microsoft stock is down nearly 14% from its all-time high.

Earnings season is near, and it's time to start looking at what stocks could be primed for a big move following earnings announcements. One stock that has fared poorly since its last announcement is Microsoft (MSFT +3.28%). Since it announced fiscal 2026 first-quarter earnings (ending Sept. 30) on Oct. 29, its stock price has declined nearly 14%.

It's rare to see a big tech company as successful as Microsoft be down so much from its recent highs, but that could open up a buying opportunity for long-term investors. Microsoft announces fiscal 2026 Q2 earnings (ending Dec. 31) on Jan. 28.

Is now the time to buy, or should long-term investors wait until after? Let's find out.

Image source: Getty Images.

Microsoft's stock success boils down to a few key areas Microsoft oversees a lot of different business segments. It has its Office computer products that many utilize on a daily basis, alongside other software tools and hardware products that businesses need to operate on a daily basis. It owns the Xbox video game system and the Activision-Blizzard gaming studio (along with multiple other studios), and also operatesthe online professional business social media site LinkedIn. While these are all components of Microsoft's overall picture, what investors of late really want to know is how Microsoft is doing with artificial intelligence (AI).

While its Copilot product within the Office suite of software products has become popular for its AI capabilities, the star of the show for Microsoft's AI efforts is its cloud computing segment, Azure. Azure has become one of the top cloud computing options to build AI applications on, mainly because it gives users access to multiple generative AI models. While Microsoft has a significant ownership stake in the current generative AI leader, OpenAI (which makes ChatGPT), it also gives users access to other AI models like X's Grok, Meta Platforms' Llama, and Anthropic's Claude. This has led to incredible Azure growth, with revenue rising at a 40% year-over-year pace in Q1.

Today's Change

(

3.28

%) $

14.81

Current Price

$

465.95

If Azure continues to show strength alongside the rest of the business, I think the stock could go higher. However, if this next earnings report implies that it's weak for some reason, don't be surprised to see the stock price decline a few percentage points.

The reality is, Microsoft's stock decline wasn't necessarily a bad thing, as the stock's valuation got a bit overheated.

Microsoft's valuation is at a reasonable level now Prior to its decline starting in late October, Microsoft traded for more than 32 times forward earnings. Most big tech stocks trade around 30 times forward earnings, so this was a bit pricey for the results Microsoft was delivering.

Data by YCharts.

However, 28.5 times forward earnings may be a great entry point for the stock, as it still provides a decent discount from the 31.5 times forward earnings level that Microsoft's stock has averaged over the past five years.

If Microsoft's fiscal 2026 second-quarter results are solid, I won't be surprised to see the stock pop a bit. It looks like a solid deal right now, and I think long-term investors should take advantage of it.

Keithen Drury has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Klarna Group plc (NYSE: KLAR) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Klarna's September 2025 initial public offering (the "IPO"), of the important February 20, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.

So What: If you purchased Klarna securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Klarna class action, go to https://rosenlegal.com/submit-form/?case_id=48971 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 20, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

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, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. 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, at that time, 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 hundreds of millions 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.

Details of the case: According to the lawsuit, the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) Defendants materially understated the risk that Klarna's loss reserves would materially go up within a few months of the IPO, which they either knew of or should have known of given the risk profile of many individuals agreeing to Klarna's buy now, pay later ("BNPL") loans; and (2); as a result, defendants' public statements were materially false and misleading at all relevant times and negligently prepared. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Klarna class action, go to https://rosenlegal.com/submit-form/?case_id=48971 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or 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.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

New! Comic speech bubble. Sale, promo, discount, arrival lettering element with sound effect of color phrase. Vector on transparent background

getty

New year, new dividends. And today we’ll review seven brand new payouts.

Why are new divvies potential money makers? Because companies love to deliver big raises out of the gates to reward shareholders.

And to be honest, it doesn’t cost them much. These current yields are often modest, so they have room to grow.

But in percentage terms, these payout pops look impressive. And with gaudy growth numbers comes the “momentum” buyers, who often bid these stocks up, up and away.

Which sophomore dividends are likely to impress soon? Let’s discuss.

Newest Dividend #1: Tutor Perini (TPC)Dividend Initiation Announcement: Nov. 18, 2025
First Dividend Payment: Dec. 23, 2025
Dividend Amount: $0.06 (Quarterly)
Dividend Yield: 0.3%

Tutor Perini (TPC) is one of the nation’s largest general contracting companies, providing general contracting, construction management and design-build services worldwide. It operates across three divisions:

MORE FOR YOU

Civil: Public works and infrastructure; highways, bridges, tunnels, military defense facilities and moreBuilding: Serves building markets such as hospitality and gaming, transportation, health care, commercial offices, government facilities, and moreSpecialty: Electric, mechanical, plumbing, HVAC and other services for civil and building construction projectsWhile many new dividend payers are relatively young companies, Tutor Perini breaks that mold. While the company has only existed in its current form since the 2008 merger of Tutor-Saliba and Perini Corp., its roots go back to 1894. Tutor Perini also stands out as an unlikely dividend starter in that it printed net losses in each of the past three years.

But business has turned up. By the third quarter of 2025, the company was boasting record YTD operating cash flow of $574.4 million, and a record backlog of $21.6 billion. That wave of success helped shares more than triple in 2025, and prompted the company to not only initiate a 6-cent-per-share dividend, but also authorize a $200 million share repurchase program.

For full-year 2025, to be reported later this quarter, Tutor Perini is expected to flip from an adjusted loss of $3.13 per share last year to a $4.10 profit. The dividend represents just 6% of those earnings—plenty of room for further hikes, sure, but also expectedly low given the highly cyclical nature of this business.

Newest Dividend #2: Orla Mining (ORLA)Dividend Initiation Announcement: Dec. 3, 2025
First Dividend Payment: Feb. 10, 2026
Dividend Amount: $0.015 (Quarterly)
Dividend Yield: 0.4%

Vancouver-based Orla Mining (ORLA), once a “junior miner,” is evolving into a mid-tier producer of predominantly gold and silver, but also zinc, lead and copper. Its material projects include a pair of operating mines (Camino Rojo in Mexico’s Zacatecas state and Musselwhite Mine in Ontario) and a development project (South Railroad in Nevada), each of which is 100% owned by the company.

Orla didn’t even churn out revenues for most of its existence, but it finally started to deliver a top line shortly after adding an American listing on the NYSE American exchange in late 2020. Its first profit came in 2022, then after printing red ink in 2023, it roughly doubled its 2022 net income in 2024. It was pacing for a smaller but still substantial profit for 2025.

While Orla’s buildup has come over several years, shareholders enjoyed a Tutor-esque 1-2 punch of rocketing shares and new income in 2025. The stock finished 143% higher last year, and in early December, the company announced it would begin paying an (extremely modest) 1.5-cent-per-share quarterly distribution that will start being paid in February.

Dividend expansion from here might not be that brisk—mining profits are cyclical as is, and Orla is a smaller operator with just a handful of assets. But management felt confident enough in its profits’ stickiness to stick their necks out with a regular dividend.

Newest Dividend #3: ePlus (PLUS)Dividend Initiation Announcement: Aug. 7, 2025
First Dividend Payment: Sept. 17, 2025
Dividend Amount: $0.25 (Quarterly)
Dividend Yield: 1.1%

ePlus (PLUS) provides a wide variety of IT and professional services through its various subsidiaries and technology partners. Like many businesses in the space, ePlus touts its ability to help businesses implement or unlock more potential in artificial intelligence (AI). But its solutions also cover data centers, cloud computing, cybersecurity, networking and far more.

ePlus was founded in the 1990s and had its own little dot-com boom and burst—spiking to a level it wouldn’t touch again for another 13 years. But the company finally started delivering reliable profit growth in 2010, and it has taken off ever since, with PLUS shares soaring by 2,000% over the past 15 years or so.

It’s now sharing some of the wealth in the form of a 25-cent quarterly dividend, announced in August and paid in September. But the new distribution comes not in the midst of an explosion to new levels, but as ePlus navigates more wobbly top- and bottom-line results. More mixed results are expected over the next couple years—high-single-digit revenue growth but a decline in EPS in the current fiscal year, then a rebound in profits but a flat top line next year.

Newest Dividend #4: Visteon (VC)Dividend Initiation Announcement: July 24, 2025
First Dividend Payment: Sept. 5, 2025
Dividend Amount: $0.275 (Quarterly)
Dividend Yield: 1.2%

Visteon (VC) is an automotive technology company that essentially drives all of the cool, flashy parts of our cars: display systems, instrument clusters, telematics, connected services, Android infotainment and more. It also has an “electrification” division that offers power connection, power conversion and electronic control solutions.

Visteon, a spinoff of Ford (F) that first went public in 2000, but it was delisted and forced to file for Chapter 11 bankruptcy protection during the Great Recession. It re-emerged in 2010 and rejoined the NYSE in 2011.

It has done next to nothing since then.

If there’s any good news, it’s that after volatile and generally declining net income across the 2010s, the bottom line has been rebounding in a much more stable manner during the 2020s. That led Visteon to introduce a 27.5-cent quarterly dividend in July 2025. Sadly, investors have rewarded the company with a four-month selloff that started right around the first distribution payment in September.

Newest Dividend #5: G-III Apparel Group (GIII)Dividend Initiation Announcement: Dec. 9, 2025
First Dividend Payment: Dec. 29, 2025
Dividend Amount: $0.10 (Quarterly)
Dividend Yield: 1.3%

G-III Apparel Group (GIII) is an apparel giant that operates through both wholesale and retail operations. It covers the gamut of apparel, too—outerwear, sportswear, swimwear, jeans, suits, athleisure—and also accessories such as handbags, shoes and luggage. Its owned brands include DKNY, Andrew Marc, Wilsons Leather, G.H. Bass and Jessica Howard, among others. And it also markets apparel under a wide umbrella of licensed brands including Nautica, Tommy Hilfiger, Kenneth Cole, Levi’s, Calvin Klein, Converse and Dockers, as well as sports gear from the Big Four pro leagues and college programs.

G-III peaked in 2015, but its declines largely stopped by 2020. That sounds great, but it has merely improved to being “dead money,” delivering a 10% cumulative return over the past five years. That said, net income has been relatively steady, with the exception of a loss in fiscal 2023 amid a massive writedown in its brands as well as supply-chain issues—with the upshot that the latter forced G-III and other retailers to get smarter about their inventory management.

G-III apparently expects enough bottom-line stability that it’s willing to part with some of its cash, evidenced by its December announcement of a 10-cent quarterly dividend. There’s not much growth to be squeezed out of this business model; G-III may believe a dividend is the best way to attract shareholders going forward.

Newest Dividend #6: California BanCorp (BCAL)Dividend Initiation Announcement: Dec. 8, 2025
First Dividend Payment: Jan. 15, 2026
Dividend Amount: $0.10 (Quarterly)
Dividend Yield: 2.2%

California BanCorp (BCAL) is the bank holding company for California Bank of Commerce, a small San Diego-based bank with just 14 branch offices and four loan production offices in the state of California. There’s nothing out of the ordinary in its offerings either: consumer products like checking, savings, money markets and CDs, and business offerings like accounts, financing and Treasury management.

What does stand out is extremely rapid growth over the past decade or so. The company delivered just $13.6 million in revenues back in 2015; it has grown the top line every year since, and not just in baby steps. It reported $180 million in revenues for 2024. Earnings haven’t grown as unflinchingly, but they too have ballooned over time.

Wall Street hasn’t rewarded that fundamental improvement by driving shares higher, but it might think differently now that management is directly rewarding shareholders. Near the end of 2025, the company announced it would begin paying a 10-cent quarterly dividend, which it distributed in mid-January.

Newest Dividend #7: Carnival Corp. (CCL)Dividend Initiation Announcement: Dec. 19, 2025
First Dividend Payment: Feb. 27, 2026
Dividend Amount: $0.15 (Quarterly)
Dividend Yield: 2.1%

Carnival Corp. (CCL) is one of a handful of blue-chip cruise companies, offering its services not just under the namesake Carnival Cruise brand, but also AIDA Cruises, Costa Cruises, Cunard, Holland America, P&O Cruises, Princess Cruises and Sebourn.

Carnival is as cyclical as cyclical gets, long trading at the whim of the economy. But perhaps the greatest obstacle in the company’s history came in 2020 in the form of COVID. The general wreckage to the global economy would’ve been bad enough, but the ease with which the virus could spread on these cruises prompted Carnival and most other operators to voluntary shut down operations—and made customers loath to return once cruises set sail again.

Indeed, Carnival Corp.’s new 15-cent dividend—announced in mid-December and to be paid starting in February—is a resumption of the dividend program it was forced to suspend in 2020.

The restored dividend is a nod to Carnival’s recovery. Its fiscal 2023 was the last year of losses—it reported a substantial profit in 2024, and its 2025 bottom line was on par with pre-COVID levels. And this was a restart with a “bang,” representing one of the biggest yields among “new” dividend payers.

Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.2%) — Practically Forever.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ET, EPD, WES, PAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

Parker-Hannifin had a great 2025, and is a high-quality industrial investors can buy on pullbacks.

Shares of industrial giant Parker-Hannifin Corporation (PH 1.20%) rallied 38.2% in 2025, according to data from S&P Global Market Intelligence.

Parker-Hannafin sells motion control equipment and valves across several general industrial applications and the aerospace industry.

In 2025, its industrial segments were somewhat mixed, but the aerospace segment, the company's largest, "took off," so to speak, leading to margin expansion and a series of earnings beats.

Additionally, Parker-Hannafin made two acquisitions last year, including the $1 billion acquisition of Curtis Instruments and the larger $9.25 billion acquisition of Filtration Group.

Today's Change

(

-1.20

%) $

-11.28

Current Price

$

927.99

Parker-Hannifin recovers from "Liberation Day" The year started off poorly for Parker Hannifin, as the controversial "Liberation Day" tariffs threatened all industrial businesses worldwide. However, fears over tariffs were soon allayed, as Parker management increased prices during the year and streamlined costs, boosting margins even though revenue was challenged in the general industrial segment.

Parker has been an active acquirer of businesses and a consolidator in the motion control industrial space. The past year's results were driven by the successful integration of aerospace company Meggitt PLC, which Parker bought for approximately $7.3 billion back in September of 2022. In fiscal 2025, which ended on June 30, Parker's aerospace division grew 13% and expanded operating margins by 300 basis points, thanks to continued cost synergies from that deal. That was enough to offset the 3% decline in the general industrial segment, outside of divestitures.

And Parker's good results continued in the first fiscal quarter of 2025, in which Parker accelerated revenue growth to 3.7%, or 5% when factoring in divestitures. Margins continued to expand, with adjusted earnings per share growing at a higher 16% pace. As a result of the strong results, management raised full-year guidance to 6.5% revenue growth, up from a prior guide of 3.5%, while raising the full-year adjusted EPS outlook from $28.90 to $30.00 per share.

Because Parker has experience and past success in integrating acquisitions, the market also applauded the $1 billion acquisition of Curtis Instruments, which makes control and power devices for the electric vehicle motor industry, as well as the $9.25 billion acquisition of Filter Group, which makes industrial filtration systems across a variety of industrial applications. The Filter acquisition also exposes Parker to the food protection and healthcare segments, where it did not previously have a presence.

Image source: Getty Images.

Parker is a high-performing company, but at a price Parker-Hannifin is a high-performing company with the strategy of applying its "Win 3.0" business excellence strategy to new acquisitions. In 2025, the consolidator-rollup strategy proved itself in a difficult macroeconomic environment, further enthusing investors.

Currently, shares trade for 33 times earnings, which is the high end of the valuation range Parker has traded for over the past decade. So while 2025's big gains may make Parker fairly valued to over-valued, it's a high-quality name all investors in industrial stocks should have on their radar, in case of any material pullbacks.

Philadelphia, Pennsylvania--(Newsfile Corp. - January 25, 2026) - WHAT IS HAPPENING? Grabar Law Office is investigating claims on behalf of shareholders of Molina Healthcare, Inc. (NYSE: MOH). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

If you purchased Molina Healthcare, Inc. (NYSE: MOH), shares prior to February 5, 2025, and still hold shares today, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Please visit https://grabarlaw.com/the-latest/molina-shareholder-investigation/, contact Joshua Grabar at [email protected], or call 267-507-6085 to learn more.

WHY? As alleged in an underlying securities fraud class action complaint, Molina Healthcare, Inc. (NYSE: MOH), through certain of its officers, failed to disclose: (1) material, adverse facts concerning Molina Healthcare's "medical cost trend assumptions"; (2) that Molina Healthcare was experiencing a "dislocation between premium rates and medical cost trend"; (3) that Molina Healthcare's near term growth was dependent on a lack of "utilization of behavioral health, pharmacy, and inpatient and outpatient services"; and (4) as a result, Molina Healthcare's financial guidance for fiscal year 2025 was substantially likely to be cut.

WHAT CAN YOU DO NOW? If you purchased Molina Healthcare, Inc. (NYSE: MOH), shares prior to February 5, 2025 and still hold shares today, you are encouraged to visit https://grabarlaw.com/the-latest/molina-shareholder-investigation/, contact Joshua Grabar at [email protected], or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. $MOH #Molina #MOH

Attorney Advertising Disclaimer

Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: [email protected]

WHY GRABAR LAW OFFICE?

Grabar Law Office is a nationally recognized firm with extensive experience as counsel in complex commercial litigation in state and federal courts throughout the nation, having an emphasis in securities class action and individual shareholder litigation under federal and state securities laws, antitrust litigation under federal and state antitrust laws, and consumer rights litigation under state consumer protection laws. The firm represents and is trusted by numerous publicly listed corporations, multinational manufacturers and distributors, municipalities, universities, business owners and individuals. The firm's lawyers have been recognized as "AV Preeminent" - peer rated for highest level of professional excellence and ethical standing by Martindale-Hubble, and by Thompson Reuters' Super Lawyers publication.

Want more information about Grabar Law Office and its attorneys? Please visit: https://grabarlaw.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/281537

Source: Grabar Law Office

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

Shares of United Parcel Service have cratered, but the turnaround effort appears to be working.

United Parcel Service (UPS 1.21%), commonly known as UPS, operates one of the world's dominant package delivery services. It is a vital cog in modern society, as e-commerce continues to grow. Add a huge 6% dividend yield, and dividend investors might be tempted to buy the stock while it languishes below $110 per share. Before you jump aboard, you'll want to understand a few things.

It would be hard to replicate UPS's business Delivering packages sounds simple, but it is actually a capital-intensive, logistically complex effort. UPS owns a large collection of retail stores, sorting and distribution facilities, a massive fleet of local delivery trucks, and long-haul assets, like tractor-trailers and airplanes. And it has to have the technology to track every single package moving through its extensive system.

Image source: Getty Images.

It would be hard, if not impossible, to replace UPS. In fact, even after years of building its own delivery network, e-commerce giant Amazon (AMZN +2.12%) still uses UPS. However, Amazon is also a key part of UPS's current business revamp, with the story dating back to the coronavirus pandemic in 2020.

During the pandemic, shopping online was the preferred way to buy things because people were stuck at home, socially distancing themselves. Demand for package delivery services skyrocketed, and UPS's stock rose dramatically. When the world reopened, demand normalized, and UPS's stock plunged. It was about this time that this industrial company decided it needed to overhaul its business. Amazon is important here because it is a large-volume customer, but that volume has very low profit margins.

UPS decided it needed to streamline its operations and focus its business on its most profitable customers. This effort included proactively reducing its exposure to Amazon. The business turnaround also involved capital investments in new technology and the closure of less efficient facilities. Essentially, it was spending more money and bringing in less revenue. Wall Street has been avoiding the stock, which is still about 53% below its 2022 high.

Green shoots are showing up It is entirely reasonable that investors were concerned about the income statement trends emerging at UPS. However, turnarounds often look ugly at first since they usually require upfront spending that doesn't provide a return until some time down the road. UPS is starting to see early improvement, which is very encouraging.

For example, in the second quarter of 2025, the company's revenue per piece in the U.S. market rose 5.5% even as the revenue for the division fell roughly 0.8%. However, that's exactly what you would expect based on what UPS was attempting to achieve: handle fewer, but more profitable, packages.

Today's Change

(

-1.21

%) $

-1.32

Current Price

$

107.98

The second-quarter progress was followed by an even stronger result in the third quarter. Revenue per piece in the U.S. jumped 9.8%, even as the revenue in the U.S. business fell 2.6%. Overall, the company's adjusted operating margin improved 110 basis points year over year. Again, that's more progress toward the big goal and a sign that better business trends may be starting to take shape.

Wall Street is getting excited UPS' share price has bounced off its recent lows and is now up 24% over the past three months. It looks like investors believe the turnaround effort is gaining traction. If you like turnarounds, UPS could be worth buying today.

However, dividend investors might want to tread with caution. The lofty 6% yield is backed by a dividend payout ratio above 100%. Sometimes, big business overhauls are accompanied by a dividend reset. That said, even a 50% dividend cut would still leave the yield at 3%, well above the tiny 1.1% on offer from the average S&P 500 stock today.