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This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Intuitive Surgical’s Q2 earnings.

Simply stay on this page, and new updates will appear below automatically. We expect Intuitive Surgical to release earnings shortly after 4:00 p.m. ET.

1 minute ago

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That wraps up our initial coverage of Intuitive Surgical’s Q2 results. Thank you for stopping by!

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Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) is down 7.5% after Q2 earnings.

Does the Reaction Fit the Results? The company reported a strong beat: +11.83% on EPS, revenue up 18.54%, and non-GAAP gross margin expanding to 70.0% from 67.9%.

The gross margin guidance was raised to 68.0%–69.0%, directly refuting fears about the da Vinci 5 margin.

Historical Context Prior beats averaged a +3.48% day-of move, so today matches the pattern. Yet Q1 2026 popped +7.16% then faded -9.41% over 30 days.

What the Market Is Watching Procedure guidance was held at 13.5%–15.5%, not raised, which might be a concern that drove the sell-off.

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Demand for Intuitive Surgical’s newest robotic system remained strong, with da Vinci 5 placements increasing 37% year over year to 246.

Total da Vinci placements rose 18% to 468, helping systems revenue increase 19% to $685 million.

More than half of da Vinci placements used operating leases, including 131 usage-based systems. This structure could limit upfront systems revenue but expand recurring revenue as utilization grows.

Intuitive Surgical now has 11,710 da Vinci systems installed worldwide, up 12% from one year ago.

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Intuitive Surgical delivered a strong second quarter, with revenue increasing 19% to $2.89 billion and adjusted EPS climbing 28% to $2.80.

Both figures exceeded Wall Street’s expectations, although EPS included an $0.08 benefit from refunds of tariffs paid in prior periods.

Total procedures increased 16% year over year, including 15% growth for da Vinci procedures and 36% growth for Ion procedures.

Management continues to expect full-year da Vinci procedure growth of 13.5% to 15.5%, likely near the midpoint of that range.

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Intuitive Surgical just reported earnings, with shares initially down 7% following the report. Here are the key numbers:

Revenue: $2.89 billion vs. $2.83 billion expected Adjusted EPS: $2.80 vs. $2.50 expected Guidance:

Worldwide da Vinci procedure growth: 13.5% to 15.5% Non-GAAP gross margin: 68.0% to 69.0% Non-GAAP operating expense growth: 11% to 13% Quick Read:

Intuitive Surgical comfortably beat expectations, with revenue rising 18.4% and adjusted EPS climbing 27.9% year over year.

Despite the beat, shares are falling as investors focus on the procedure-growth outlook and whether future growth can justify the stock’s premium valuation.

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Bull Case Beat streak intact: Four consecutive EPS beats, capped by Q1’s $2.50 vs. $2.1068 earnings report. da Vinci 5 momentum: 232 placements in Q1 with 11% higher utilization than Xi. Recurring engine: Instruments & accessories revenue reached $1.69 billion, +23%, backed by $7.98 billion cash. Sentiment lean: Composite score 65.03 (Bullish); average analyst price target of $558.01 vs current share price of $401.96. Bear Case Post-beat fade: Average 30-day change of -2.28% after prior beats. Margin compression: 1.0% tariff drag; gross margin guide 67.5%-68.5%. Macro chill: Consumer sentiment at 44.8 threatens hospital capex. Valuation reset: P/E of 49 with the stock down 31.32% YTD. 1 hour ago

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The current full-year framework for Intuitive Surgical (NASDAQ:ISRG) calls for 13.5% to 15.5% da Vinci procedure growth and a 67.5% to 68.5% non-GAAP gross margin, embedding a 1.0% tariff drag.

Management historically guides conservatively, then walks the range up: 2025 started at 15.5%–17% and ended at 18%.

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Polymarket’s crowd assigns a 46.5% probability to Q2 procedure growth landing in the 15%–17.5% range, with 34.5% for a sub-15% result.

Bullish scenario: full-year procedure guide raised above 15.5%, margin biased toward 68%+, and softer tariff commentary.

Bearish scenario: unchanged procedure range, margin drift toward 67.5%, and hospital capex caution.

With four straight EPS beats averaging 18.66% most recently, the headline number matters less than the raise.

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With Intuitive Surgical (NASDAQ:ISRG) set to report Q2 earnings tonight shortly after 4:00 PM ET, here’s the framework for tonight’s call.

Top 5 Analyst Questions Does FY2026 da Vinci procedure guidance of 13.5%–15.5% get raised after crowd bets favor 15%–17.5% growth? Any read-through from HCA’s July 14 surgical volume warning? Is the 1.0% tariff drag holding? da Vinci 5 mix and ASP trajectory after 232 placements in Q1? Buyback pace after $1.1B repurchased in Q1? Key Topics and Buzzwords Listen for: “quintuple aim,” “installed base leverage,” “usage-based leasing,” “capital constrained customers,” force feedback EU approval. Ion sustainability after 39% Q1 procedure growth; direct sales transition in Italy, Spain, Portugal. Red Flags Procedure miss versus guide, tariff drag expansion, gross margin cut below 67.5%, Hugo/Ottava share commentary, or hospital capex softness. 2 hours ago

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Intuitive Surgical’s (NASDAQ: ISRG) second-quarter report tonight will test whether the company can defend its premium valuation as procedure growth slows and tariffs pressure margins.

The biggest number to watch is procedure growth. After expanding 18% in 2025, management currently expects growth of 13.5% to 15.5% in fiscal 2026.

Investors will also be watching the mix of da Vinci 5 placements and utilization gains, which could determine the strength of the systems revenue narrative heading into the second half.

Management has estimated that tariffs will result in a drag equal to approximately 1% of revenue due to exposure across Mexico, Germany, and China. Any additional pressure could weigh on gross margins.

Shares have declined 21.92% over the past year. A guidance increase tonight could reinvigorate the growth-at-a-reasonable-price case, but a reduction in margin estimates would likely cement the stock’s ongoing derating.

Intuitive Surgical (NASDAQ:ISRG) reports Q2 earnings results at 4:40 PM ET tonight after the bell. The robotic surgery leader enters the earnings report tonight with a $142.05 billion market cap, while shares are down 29.3% year to date.

Momentum Meets a Valuation Reset Q1 delivered a fourth straight beat, with non-GAAP EPS of $2.50 topping the $2.11 consensus and revenue of $2.77 billion growing 23% year over year. Yet the stock has fallen 13.81% since that April 21 filing.

Q1 gross margin expanded to 67.8% from 66.4%, with da Vinci procedures up 16% and Ion procedures up 39%. Management nudged FY26 procedure growth to 13.5%-15.5%, still a step down from 2025.

The stock trades at about $400.55 as of 2:40 PM ET, against an average analyst price target of $558.01.

Consensus and Crowd Estimates Metric Value Frame FY26 da Vinci procedure growth 13.5%-15.5% Guidance FY26 non-GAAP gross margin 67.5%-68.5% Guidance Q2 procedure growth (crowd) 15%-17.5% at 36.5% Polymarket Forward P/E 39 Valuation Polymarket traders assign a 63% combined probability to Q2 procedure growth landing between 12.5% and 17.5%, and only 8% odds to a sub-12.5% miss. The setup skews toward in-range execution rather than a blowout.

Margins, Tariffs, and da Vinci 5 Take Center Stage Tonight, I’ll be watching ISRG’s gross margin closely. CFO Jamie Samath flagged that oil and memory input costs will hit harder later in the year, saying “we do expect those to have a greater unfavorable impact in the remainder of the year.” Any drift above the 1.0% of revenue tariff assumption would compress the margin story.

Investors will also focus on da Vinci 5 placement mix. Q1 delivered 232 da Vinci 5 systems out of 431 total placements, with da Vinci 5 utilization running 11% above Xi. That mix drives ASPs and downstream I&A revenue.

International tone matters too. Rosa cited “ongoing challenges in China and Japan,” with new Japanese reimbursements for 7 procedures beginning June 2026. I’ll track whether early June signal reads bullish. Ion momentum, SP procedure growth of 68%, and Force Feedback rollout round out the watchlist.

Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q1 2026 +18.66% -0.99% -6.16% -9.41% Q4 2025 +11.51% +0.92% -3.77% -3.40% Q3 2025 +20.65% +4.61% +2.00% +6.56% Q2 2025 +13.22% -2.66% -0.29% -5.14% On average, shares moved -0.50% one week after earnings across the past year.

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COO Ye Gang disclosed a sale of 40,000 Class A ordinary shares of Sea Limited (SE 4.62%) for about $4.4 million in a SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$4.4 millionShares sold40,000Post-transaction shares (total)22.0 millionPost-transaction shares (directly held)21.6 millionPost-transaction shares (indirectly held)360,000Post-transaction value$2.45 billionTransaction value based on SEC Form 4 weighted average sale price ($110.94); post-transaction value based on July 15, 2026 market close ($111.36).

Key questionsWhat was the structural nature of this transaction?
The sale was conducted indirectly through a BVI entity and exclusively involved Class A ordinary shares, leaving the insider's direct holdings of 21.6 million shares unchanged.Does this trade indicate a shift in management's outlook?
The disposition was pre-arranged through a Rule 10b5-1 trading plan established on September 4, 2025, which suggests the transaction was a routine liquidity event rather than a discretionary response to recent company developments.How does this move align with recent price action?
Shares of Sea Limited were priced at $111.36 as of the July 15, 2026 market close, following a 12-month period in which the consumer cyclical stock saw a -30% total return.What is the status of the insider's remaining equity?
Following the sale, Ye Gang retains a 4.0% ownership interest in the Singapore-based company, which operates in the specialty retail industry across Southeast Asia and Latin America.Company OverviewMetricValueShare Price (as of market close 2026-07-15)$111.36Market Capitalization$68.2 billionRevenue (TTM)$25.2 billionNet Income (TTM)$1.6 billionCompany SnapshotSea Limited operates three core business segments: digital entertainment through its Garena platform offering online games and eSports events, e-commerce operations serving consumers across Southeast Asia and Latin America, and digital financial services providing payment and fintech solutions to its customer base.The company generates revenue through multiple channels including in-game purchases and advertising within its digital entertainment platform, transaction fees and commissions from e-commerce marketplace operations, and service fees from its digital financial services offerings.Sea Limited primarily serves digital-native consumers and merchants across Southeast Asia, Latin America, and other emerging markets, with a particular focus on mobile-first users in developing economies seeking gaming entertainment, online shopping, and financial services.Sea Limited is a diversified digital platform operator with a $68.2 billion market capitalization and TTM revenues of $25.2 billion, positioning it as a leading technology conglomerate in emerging markets. The company leverages its integrated ecosystem spanning entertainment, commerce, and fintech to capture multiple revenue streams while maintaining significant scale across geographically fragmented markets. Sea's competitive advantage derives from its multi-platform approach, deep regional expertise in Southeast Asia and Latin America, and ability to cross-monetize its user base across its three core business segments.

What this transaction means for investorsThis filing shows a billionaire co-founder taking a sliver of pocket change off the table, so it’s not really a signal to chase. Ye scheduled the trade last September under a preset plan, and while $4.4 million sounds like a lot, it's a rounding error against his fortune: he still directly holds 21.6 million shares, roughly $2.4 billion worth, and keeps a 4% stake in the company he helped build. When someone this deeply invested sells a fraction of a percent on autopilot, it’s reasonable to view this as an example of personal financial planning, even with the stock down 30% over the past year.

He's also not the only insider selling small amounts lately, though all of it has run on plans set months ago while Sea itself buys back stock under a $1 billion program. Meanwhile, the business keeps outpacing the share price: first-quarter revenue jumped 47% to $7.1 billion, and adjusted EBITDA cleared $1 billion for the first time. CEO Forrest Li called 2026 a year to lean into growth. Second-quarter earnings due out next month will be the next big important signal to watch.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.

Cintas Corporation (NASDAQ:CTAS) was upgraded to ‘Buy’ from Neutral by Bank of America, which also raised its price objective to $230 from $200 after the company's better-than-expected fourth-quarter fiscal 2026 results and fiscal 2027 guidance came in above Wall Street expectations.

The analysts wrote that they are "incrementally more constructive on the setup for earnings over the next several quarters" as Cintas benefits from improving labor market conditions in key industries, continued growth in adjacent product categories, and margin expansion driven by supply chain and distribution initiatives.

Bank of America expects Cintas to deliver another year of high-single-digit revenue growth alongside stronger margins. The firm highlighted technology investments, including SmartTruck, automated sorting, garment sharing and robotics, noting these initiatives have contributed more than 400 basis points of margin expansion over the past five years.

The analysts also pointed to improving employment trends in Cintas' core customer markets, which they believe should support customer additions and stronger revenue growth.

They added that the company's First Aid and Fire Safety businesses continue to benefit from cross-selling opportunities through its recurring route-based model.

Bank of America also identified Cintas' proposed acquisition of UniFirst as a potential catalyst. While the transaction remains under a second request from the US Federal Trade Commission, the analysts wrote they remain constructive on the deal's strategic rationale and believe the estimated $375 million in synergies "could be conservative."

The firm raised its valuation multiple to 39 times earnings from 37 times, reflecting greater confidence in potential earnings upside. While this represents a premium to business services peers, Bank of America wrote the valuation is supported by Cintas' consistent high-single-digit growth profile, cross-selling momentum and technology-driven productivity improvements.

Shares of Cintas traded higher on the upgrade, up 7% at $206.

Key Takeaways Western Digital expects stronger Q4 FY2026 revenues and higher margins on robust AI storage demand. Seagate projects higher Q4 FY2026 revenues, backed by growing data-center storage demand and cash flow.Western Digital and Seagate project strong earnings growth as AI storage demand remains robust. The boom in artificial intelligence (AI) has led to persistent demand for NVIDIA Corporation’s (NVDA - Free Report) state-of-the-art AI hardware, including graphics processing units and Blackwell chips. That demand propelled NVIDIA to become the world’s most valuable company, with a market capitalization of over $4 trillion, and its stock has delivered strong returns over the past few years.  

However, NVIDIA’s growth has led to the company trading at a premium in comparison to most of the other semiconductor players, leaving little room for disappointment if growth derails. A slowdown in AI infrastructure spending by hyperscale cloud providers could impact NVIDIA’s revenue and earnings growth, while competition from rivals like Advanced Micro Devices, Inc. (AMD - Free Report) continues to increase.  

At the same time, U.S. export curbs on cutting-edge AI chips to China have constrained NVIDIA’s entry to a key market, potentially pressuring its margins. Additionally, NVIDIA remains exposed to supply-chain disruptions due to its dependency on Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) for advanced chip production amid ongoing geopolitical tensions. 

Given these challenges, it’s becoming increasingly difficult for NVIDIA to meet sky-high expectations. Thus, investors seeking AI exposure should look for much smaller companies with greater room for expansion. Notable among them are Western Digital Corporation (WDC - Free Report) and Seagate Technology Holdings plc (STX - Free Report) , whose shares have soared 662.8% and 464.5%, respectively, over the past year, outpacing NVIDIA’s gain of 22.6%. 

Both Western Digital and Seagate stand to gain from the rapid growth in AI-driven demand for data storage. Let’s take a closer look at the key catalysts that could drive further upside in these AI stocks –  

Western Digital’s AI Storage Boom Could Drive Further Upside Rising demand for high-value enterprise hard disk drives and a favorable pricing environment have created a solid growth runway for Western Digital. The company’s revenues totaled $3.34 billion in the fiscal third quarter of 2026, up 45% year over year, according to the company’s press release.

Furthermore, the company expects revenues for the fiscal fourth quarter of 2026 to be about $3.65 billion, plus or minus $100 million. The upbeat guidance reflects robust demand for AI infrastructure, with cloud providers and enterprise customers continuing to invest in high-capacity storage to meet increasing AI workloads. 

In the fiscal third quarter, Western Digital’s non-GAAP gross margin rose to 50.5% from 40.1% in the prior-year period. The company projects further margin expansion, with fiscal fourth-quarter non-GAAP gross margin expected to reach 51-52%. The improving gross margin is providing Western Digital with greater financial flexibility to invest in research and development, enhance earnings growth and create long-term value for shareholders. 

As a result, the company’s expected earnings growth rate for the current year is 104.1%. The Zacks Consensus Estimate of $10.06 for WDC’s earnings per share (EPS) is up 54.8% year over year.

 

Image Source: Zacks Investment Research

Seagate’s AI Infrastructure Play Gains Momentum Amid Rising Demand Seagate is well-positioned to sustain its growth momentum, banking on rising data-center storage demand, expanding margins, and robust cash flows. These favorable trends could provide the required upside for Seagate’s shares, strengthening its position as a potential beneficiary of the AI infrastructure boom. 

For the fiscal fourth quarter of 2026, Seagate expects revenues of around $3.45 billion, plus or minus $100 million, more than the $3.11 billion reported in the fiscal third quarter of 2026, according to investors.seagate.com.   

Moreover, a non-GAAP gross margin of 47% in the fiscal third quarter reflected improved operational execution and enhanced profitability. Additionally, the company’s free cash flow of $953 million in the fiscal third quarter showcased the strength in its core business.  

Supported by these trends, Seagate’s expected earnings growth rate for the current year stands at 84.3%, while the Zacks Consensus Estimate of $14.93 for STX’s EPS represents a 47.5% increase from the prior-year period.

 

Image Source: Zacks Investment Research

Both Western Digital and Seagate currently have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Strategic acquisition adds high-margin cable management products and extends ARRAY’s reach across utility-scale solar, distributed generation, BESS, and datacenter applications July 16, 2026 16:30 ET  | Source: Array Technologies, Inc.

Adds a highly complementary, accretive balance-of-system product portfolio spanning solar wire management, cable protection solutions, and battery energy storage solutions (BESS)Creates new growth opportunities in fast-growing adjacencies including BESS and datacenter infrastructureTotal Consideration of approximately $203 million represents an attractive multiple of 8.8x AWM's trailing twelve-month EBITDAExpected to be high single digit accretive to ARRAY's Adjusted EPS in year one before synergiesClosing expected in the third quarter of 2026, subject to regulatory clearance and customary closing conditions ALBUQUERQUE, N.M., July 16, 2026 (GLOBE NEWSWIRE) -- ARRAY Technologies, Inc. (NASDAQ: ARRY) (“ARRAY” or the “Company”), a leading global provider of solar tracking technology and fixed-tilt products, foundation solutions, software systems and services, today announced it has entered into a definitive agreement to acquire Affordable Wire Management, LLC ("AWM"), a leading provider of wire management, cable protection, and balance-of-system solutions for utility-scale solar and energy storage projects. The acquisition further expands ARRAY’s portfolio of solutions for utility-scale solar customers while creating new growth opportunities in battery energy storage and datacenter markets.

AWM’s products organize, secure, and protect electrical wiring to improve system reliability, safety, installation efficiency, and long-term performance. The company has developed proprietary designs that offer greater durability, enhanced thermal management, and lower resistive losses than conventional solutions. With nearly $60 million trailing twelve months revenue, AWM has built a track record of profitable growth, based on a capital-light operating model and a culture of innovation. The acquisition of AWM is expected to be high single digit accretive to ARRAY’s Adjusted EPS in year one before synergies.

"The acquisition of AWM will further broaden our balance-of-system portfolio and deepen our relevance to our customers as well as create new growth vectors for us in the BESS and datacenter markets," said Kevin G. Hostetler, Chief Executive Officer of ARRAY. “AWM brings a proven, innovative product line and a strong reputation for quality and customer service. Together, we will be able to offer a more complete, integrated solution to our customers across the solar, battery storage, and datacenter markets."

"Becoming part of ARRAY is a tremendous opportunity for our team and our customers," said Scott Rand, Chief Executive Officer and Co-Founder of AWM. "ARRAY’s scale, customer relationships, and global reach will make this the ideal home for our team and our products. We share a culture of innovation and a relentless focus on the customer, and that alignment will unlock real value for customers across solar, storage, and beyond.”

“Differentiating through engineering has always been at the core of how we design our products,” said Dan Smith, Chief Technology Officer and Co-Founder of AWM. “By bringing our wire management and balance-of-system products together with ARRAY’s tracking, fixed-tilt, and foundation platform, we can deliver various integrated solutions engineered to work together – simplifying design, improving installation, and reducing costs for our customers."

Following the closing of the acquisition, AWM’s financial results will be included in the ARRAY Legacy segment. AWM's senior management team is expected to remain with the business following the closing.

Transaction Terms

The total consideration of AWM is $203 million, together representing a multiple of approximately 8.8x AWM’s trailing twelve-month EBITDA. The total consideration consists of a base purchase price of AWM of $153 million and total additional consideration of up to $50 million. The final amount of upfront cash consideration will be determined at closing subject to customary purchase price adjustments. The additional consideration of up to $50 million is comprised of $10 million payable in two equal installments on the first and second anniversary of the closing, each conditioned on the continued employment of the sellers and a performance based earnout of up to $40 million payable in three installments of up to $8 million based on 2026 performance and up to $16 million for each 2027 and 2028 performance years based on AWM’s achievement of certain EBITDA targets during the applicable period. Both components of the earnout may be paid in cash or ARRAY common stock at ARRAY’s option.

Transaction Approvals and Closing Conditions

The transaction is expected to close in the third quarter of 2026, subject to receiving any required regulatory approvals and the satisfaction of other customary closing conditions. Jefferies LLC acted as exclusive financial advisor and Jones Day acted as legal advisor to ARRAY. Edelman Smithfield acted as strategic communications advisor to ARRAY. First Liberties Financial acted as exclusive financial advisor and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. acted as legal advisor to AWM.

Additional information regarding the transaction will be included in a Current Report on Form 8-K to be filed by ARRAY with the U.S. Securities and Exchange Commission (the "SEC").

Transaction Conference Call

ARRAY will conduct a conference call today at 6:00 p.m. EDT to discuss the transaction. A live webcast will be available on the investor relations section of ARRAY's website at ir.arraytechinc.com. A replay will be available following the conclusion of the event.

Additional Resources

Associated presentation materials regarding the transaction are available on the investor relations section of ARRAY’s website.

About Affordable Wire Management, LLC

Affordable Wire Management, LLC is a provider of wire management, cable protection, and balance-of-system solutions for the solar and energy storage industries, serving utility-scale and distributed generation customers across North America and select international markets.

About ARRAY Technologies, Inc.

ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology and fixed-tilt systems to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, fixed-tilt systems, software platforms, foundation solutions, and field services combine to optimize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology - relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

Investor Relations Contact:

Investor Relations
505-437-0010
[email protected]

Media Contact:

Steven Kirsch

505-738-6923
[email protected]

Forward-Looking Statements

This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would," or similar expressions and the negatives of those terms. These include statements regarding the proposed acquisition of AWM, including the anticipated benefits and synergies, the anticipated impact on the Company's business and future financial and operating results, the expected timing and closing of the transaction, including the expected closing date of the transaction and the timing of expected synergies and returns from the transaction, the expectation that AWM’s senior management will remain with the business following the closing of the transaction, and the Company's future financial position, business strategy, revenues, earnings, free cash flow, costs, capital expenditures and debt levels of the combined company and plans and objectives of management for future operations. Our actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of risks and uncertainties, including without limitation: the ability to complete the transaction on anticipated terms and timetable; the Company's ability to integrate AWM's operations successfully and in the expected time period; the Company’s ability to achieve the strategic and other objectives relating to the transaction; the possibility that closing conditions may not be satisfied or waived; risks relating to any unforeseen liabilities of AWM; changes in growth or the rate of growth in demand for solar energy projects; factors outside of our control affecting the variability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high-voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competitive pressures within our industry, competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system and reduce the demand for our products; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, including as a result of the One Big Beautiful Bill Act, which may present technical, regulatory and economic barriers to the purchase and use of solar energy systems and may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the continuation or imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Ukraine-Russia war, attacks on shipping in the Red Sea and Straight of Hormoz, conflict in the Middle East, changing trade policies, and inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors, which could reduce demand for solar energy systems; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary rights; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information and the use of artificial intelligence by cyber threat actors; a failure to maintain an effective system of integrated internal controls over financial reporting, which may impair our ability to report our financial results accurately; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers; our ability to successfully integrate APA Solar, LLC into our existing operations and realize the anticipated benefits or synergies of the acquisition; and other factors listed and described in more detail in the section captioned “Risk Factors” in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and our other documents on file with the U.S. Securities and Exchange Commission, each of which can be found on our website, www.arraytechinc.com.

Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. You should read this press release with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Information

This press release references certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including AWM's trailing twelve-month EBITDA. "AWM's trailing twelve-month EBITDA" means net income plus interest expense, income tax expense (benefit), depreciation, and amortization during the twelve-month period ended May 31, 2026. This presentation also refers to ARRAY's Adjusted EPS. We define Adjusted net (loss) income as net (loss) income to common stockholders plus (i) amortization of intangibles, (ii) amortization of developed technology and backlog, (iii) amortization of debt discount and issuance costs, (iv) Series A preferred stock accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) certain legal expenses, (viii) acquisition-related expenses, and (ix) income tax expense adjustments. We define Adjusted net (loss) income per common share as Adjusted net (loss) income divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

Key Takeaways Snap-on is expected to post second-quarter revenue growth of 3.6% and EPS growth of 3.8%.SNA is benefiting from resilient automotive repair demand and strength in critical industries.SNA's franchise expansion, innovation and efficiency initiatives are likely aiding performance. Snap-on Incorporated (SNA - Free Report) is likely to witness top and bottom-line growth when it reports second-quarter 2026 earnings on July 23, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a rise of 3.6% from the year-ago quarter’s level.

The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.90 per share and shows growth of 3.8% from the year-earlier quarter’s tally.

The company has a trailing four-quarter earnings surprise of 1.7%, on average. It delivered an earnings surprise of 0.2% in the last reported quarter.

Key Factors Likely to Influence SNA’s Q2 ResultsSnap-on’s quarterly performance is expected to have benefited from solid demand across its core automotive repair markets, driven by the aging global vehicle fleet and increasing vehicle complexity. Healthy technician activity levels and strong repair shop utilization are likely to have supported sales growth in the Tools and Repair Systems & Information (RS&I) segments. Improved activity with customers in critical industries and the specialty torque business is expected to have aided the Commercial & Industrial (C&I) segment's performance.

SNA's robust business model enhances value creation across safety, service quality, customer satisfaction and innovation. The company’s strategic growth agenda includes expanding its franchise network, deepening relationships with repair shop owners and increasing its presence in emerging markets. Its focus on Rapid Continuous Improvement, a process aimed at boosting efficiency, controlling costs and enhancing organizational performance, is encouraging. SNA’s innovation pipeline remains strong, with ongoing investments in product development and global brand expansion.

Snap-on has been expanding its reach into critical industries including aviation, natural resources and infrastructure, where demand for precision, reliability and customized solutions is high. Growth in such areas is being supported by tailored product offerings, specialty torque solutions and deeper customer engagement. By combining customer connection, innovation, technology investments and disciplined operational execution, Snap-on continues to advance along its runways for coherent growth, supported by resilient end markets and strategic investments, positioning it for sustained sales expansion, margin resilience and value creation. All such aforesaid factors are likely to bolster the quarterly results. Our model predicts net sales rise of 3.5%, 3% and 3% for C&I, Tools and RS&I segments, respectively, for the second quarter.

Despite such strengths, Snap-on faces several external challenges. Macroeconomic headwinds, geographic pressures in critical industries and geopolitical disruptions are likely to have weighed on the company’s performance. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability.

What the Zacks Model Predicts for SNAOur proven model doesn’t conclusively predict an earnings beat for Snap-on this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Valuation Picture of SNA StockSnap-on has a forward 12-month price-to-earnings ratio of 19.86x compared with its five-year high of 20.38x and the Tools - Handheld industry’s average of 19.65x.

The recent market movements show that SNA’s shares have gained 6.2% in the past three months compared with the industry's 5.3% growth.

Stocks Poised to Beat Earnings EstimatesHere are some companies, which according to our model, have the right combination of elements to post an earnings beat:

SharkNinja, Inc. (SN - Free Report) currently has an Earnings ESP of +1.29% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

SN is likely to register bottom and top-line growth when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating a 13.5% increase from the figure reported in the year-ago quarter.

The consensus estimate for SN’s second-quarter earnings is pegged at $1.09 per share, implying 12.4% growth from the year-ago quarter’s actual. The consensus mark has dipped a penny in the past 30 days.

MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 3. MGM is likely to register a top-line increase when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.5 billion, indicating a 1.5% rise from the figure reported in the year-ago quarter.

The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 60 cents a share, implying a 24.1% decrease from the year-earlier quarter. The consensus mark has been stable in the past 30 days.

Hasbro, Inc. (HAS - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. HAS is likely to register top-line growth when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.1 billion, indicating 6.7% growth from the figure reported in the year-ago quarter.

The consensus estimate for HAS’ second-quarter earnings is pegged at $1.15 a share, implying an 11.5% decrease from the year-earlier quarter. The consensus mark has increased 1.8% in the past seven days.

The Zacks REIT and Equity Trust - Retail industry is positioned for growth as demand for necessity-based shopping strengthens. Properties anchored by grocers, discount retailers, healthcare providers and other essential tenants benefit from steady traffic and leasing activity. Constrained new development supports occupancy, rental growth and asset values.

Physical stores remain vital as shopping venues, pickup and return locations, and fulfillment centers, increasing the appeal of well-located retail space. Phillips Edison & Company, Inc. (PECO - Free Report) , Tanger Inc. (SKT - Free Report) and American Assets Trust, Inc. (AAT - Free Report) could benefit from these trends. However, economic and geopolitical uncertainty may weigh on discretionary spending and leasing demand.

Industry Description The Zacks REIT and Equity Trust - Retail industry comprises REITs that own, develop, manage and lease various retail properties, including regional malls, outlet centers, grocery-anchored shopping venues and power centers with big-box retailers. Net lease REITs focus on freestanding properties, where tenants bear rent and most operating expenses. Retail REIT performance is significantly impacted by economic conditions, employment levels and consumer spending trends. Key drivers of demand include the geographic location of properties and the demographics of surrounding trade areas. While the industry faced significant challenges from declining foot traffic, store closures and retailer bankruptcies in the past, it is now experiencing a rebound, driven by renewed consumer interest in in-store shopping, signaling a positive shift in the retail landscape.

What's Shaping the Future of the REIT and Equity Trust - Retail Industry? Need-Based and Value Retail Will Lead Growth: Retail REITs are likely to benefit most from tenants that serve household needs. Grocery stores, discount chains, health and wellness businesses and other value-focused retailers attract customers because they offer useful products at practical prices. These businesses generate repeat visits, which helps shopping centers maintain traffic and supports nearby tenants. As retailers become careful about where they open new stores, landlords with the right tenant mix should remain in a stronger position. Properties anchored by essential and value-oriented businesses can offer stable leasing demand and are better protected when consumer confidence weakens. This trend gives landlords a chance to fill available space with tenants that match changing shopping habits. Retail REITs that focus on convenience, affordability, and everyday services should therefore be better placed to grow and maintain occupancy.

Limited New Supply Will Support Existing Properties: The limited amount of new retail construction is another positive force shaping the industry. With fewer projects entering the market, existing shopping centers face less competition for tenants. Retailers looking to expand have a limited choice of locations, which is helping landlords protect occupancy and maintain rental growth. This supply advantage is useful because the market is less likely to become oversupplied. Owners are also focused on improving properties, updating layouts and bringing in stronger tenants rather than competing with newly built centers. Well-located properties with flexible space and local traffic are expected to continue to hold their value. For retail REITs, limited construction creates a supportive operating environment and gives established landlords more control over how they improve and position their portfolios.

Consumer Pressure May Create Uneven Results: The main concern is that consumer spending may become less reliable as households face higher living costs and economic uncertainty. Shoppers may continue to spend, but they are likely to become more selective and place importance on essentials, discounts and clear value. This could create a wider gap between different types of retailers. Businesses that depend on optional purchases may delay expansion, close weaker stores, or ask for more flexible lease terms. As a result, retail REIT performance may become less even across the sector. Landlords with strong finances, adaptable properties and tenants that meet everyday needs should manage the pressure effectively. However, owners with greater exposure to discretionary retail may face slower leasing, weaker demand and a risk of vacancies if consumer caution continues.

Zacks Industry Rank Indicates Bright Prospects The Zacks REIT and Equity Trust - Retail industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #95, which places it in the top 38% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the upward funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group’s growth potential. Over the past year, the industry’s FFO per share estimates for 2026 and 2027 have moved 2.20% and 3.40% north, respectively.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Outperforms Sector and S&P 500 The REIT and Equity Trust - Retail Industry has outperformed the broader Zacks Finance sector as well as the S&P 500 composite so far in the year.

The industry has risen 20.1% during this period compared with the S&P 500’s increase of 10.9% and the broader Finance sector’s growth of 7.1%.

Year-To-Date Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-FFO, which is a commonly used multiple for valuing retail REITs, we see that the industry is currently trading at 16.84X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 21.21X. The industry is trading marginally below the Finance sector’s forward 12-month P/E of 16.85X. These are shown in the chart below.

Forward 12 Month Price-to-FFO (P/FFO) Ratio

 
Over the last five years, the industry has traded as high as 18.72X and as low as 12.21X, with a median of 15.15X.

3 Retail REIT Stocks to Buy Phillips Edison & Company: This REIT, based in Cincinnati, OH, is focused on grocery-anchored neighborhood centers and complementary everyday retail. It owns 326 properties totaling 36.9 million square feet across 31 states. The portfolio is 97% leased, with 94% of annualized base rent from grocery-anchored centers and 74% from necessity-based retailers.

PECO presents a resilient growth story built on essential spending, retailer demand and disciplined capital allocation. For this retail REIT, 82% of rent comes from centers anchored by the number-one or number-two grocer by sales, while portfolio markets average $101,000 in three-mile household income. Strong occupancy supports pricing power, with comparable renewal and new-lease spreads of 21.2% and 36.2% in the first quarter of 2026. A mostly fixed-rate debt profile, liquidity and development yields near 9-12% support durable cash-flow growth.

PECO currently carries a Zacks Rank #2 (Buy). Over the past three months, the Zacks Consensus Estimate for its 2026 and 2027 FFO per share has been revised upward to $2.76 and $2.90, suggesting increases of 6.15% and 5.14% year over year, respectively. The stock has risen 8.8% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: PECO

Tanger: This Greensboro, N.C.-based REIT specializes in outlet and open-air retail destinations. With 45 years of experience, it operates 38 outlet centers and four lifestyle centers spanning nearly 17 million square feet across 22 U.S. states and Canada. Its properties host more than 3,000 stores, representing more than 800 brands and retail concepts, creating diversified shopping environments.

 Tanger combines resilient operations, leasing momentum and balance-sheet flexibility. Portfolio occupancy stands near 97%, while average tenant sales reached $482 per square foot and blended rent spreads were 10.5% in the first quarter of 2026. Tenant affordability remains supported by a 9.7% occupancy-cost ratio. With net debt to adjusted EBITDAre of 4.8 times, entirely fixed-rate debt and more than $1 billion of liquidity, Tanger has the capacity to reinvest, pursue acquisitions and support shareholder returns.

Tanger currently has a Zacks Rank #2. The Zacks Consensus Estimate for its 2026 FFO per share has been raised marginally over the past month to $2.48, indicating a 6.44% year-over-year increase. The stock has rallied 11% over the past three months.

Price and Consensus: SKT

American Assets Trust: This REIT, headquartered in San Diego, CA, has a diversified portfolio concentrated in high-barrier coastal markets. Its 31 properties span office, retail, multifamily and mixed-use assets across California, Washington, Oregon, Hawaii and Texas, totaling about 6.8 million square feet, 2,302 multifamily units and 369 hotel rooms. Its platform combines long-standing experience with in-house leasing, development and operations expertise.

AAT offers a compelling mix of asset quality, diversification and embedded upside. The portfolio benefits from locations with strong demographics, limited new supply and barriers to entry. An investment-grade balance sheet, 96% unsecured debt and roughly $618 million of liquidity provide flexibility, while no significant maturities until 2027 reduce refinancing pressure. Lease-up potential across the portfolio could add meaningful incremental FFO at stabilization.

American Assets Trust currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 and 2027 FFO per share has witnessed upward revisions to $2.03 and $2.11, indicating a 1.50% and 3.94% increase year over year, respectively. The stock has appreciated 24.1% over the past three months.

Price and Consensus: AAT

Note: Funds from operations (FFO) is a widely used metric to gauge the performance of REITs rather than net income as it indicates cash flow from their operations. FFO is obtained after adding depreciation and amortization to earnings and subtracting the gains on sales.

Key Takeaways Norfolk Southern will report Q2 results July 23, with earnings estimated at $3.23 per share. Intermodal revenues are expected to rise 5.7%, aided by freight demand and e-commerce volumes. Cost cuts and Precision Scheduled Railroading may support efficiency as revenues are seen falling 6.7%. Norfolk Southern Corporation (NSC - Free Report)  is scheduled to report second-quarter 2026 results on July 23, before market open.

The Zacks Consensus Estimate for NSC’s second-quarter 2026 earnings has been revised upward by 3.53% over the past 60 days to $3.23 per share. The consensus mark for earnings implies a 1.8% decline from the year-ago actuals. The Zacks Consensus Estimate for NSC's second-quarter 2026 revenues is pegged at $3.32 billion, indicating a 6.7% fall year over year.

Norfolk Southern has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 6.45%.

Let’s see how things are likely to have shaped up for Norfolk Southern this earnings season.

Factors Likely to Have Influenced NSC’s Q2 PerformanceWe expect NSC’s performance in the to-be-reported quarter to have been bolstered by an uptick in freight market demand and robust cost-cutting initiatives.

The Zacks Consensus Estimate for the Railway operating revenues from the intermodal segment is anticipated to have increased 5.7% from the year ago actuals.

E-commerce demand is likely to have driven NSC's shipment volumes in the to-be-reported quarter, thereby boosting the company's top line. Additionally, service quality is expected to have improved through the company's Precision Scheduled Railroading operating plan, enabling more efficient utilization of assets.

What Our Model Says About NSCOur proven model predicts an earnings beat for Norfolk Southern this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Which is not the case here.

NSC has an Earnings ESP of +0.21% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of NSC’s Q1 ResultsNSC posted earnings (excluding 22 cents from non-recurring items) of $2.65 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $2.51. The adjusted figure was down 1.5% from $2.69 a year ago.

Railway operating revenues were $3.0 billion, edging past the Zacks Consensus Estimate of $2.99 billion and rising 0.2% year over year. The adjusted operating ratio (operating expenses as a % of revenues) in the quarter landed at 68.7%, as higher costs and fuel headwinds weighed on profitability. The year-ago value of the metric was 67.9%. A lower value of the metric is preferable.

Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

CSX Corporation (CSX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. CSX is scheduled to report second-quarter 2026 results on July 22, after market close. 

The Zacks Consensus Estimate for the second-quarter 2026 earnings has been revised upward by 6.38% over the past 60 days to 50 cents per share. The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a 6.90% increase from the second-quarter 2025 actuals. 

Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.

The Zacks Consensus Estimate for second-quarter 2026 earnings has been remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.

Hershey Company (NYSE:HSY, XETRA:HSY) is expected to begin recovering margins in the second quarter as higher-cost cocoa inventory from last year cycles through, but Jefferies maintained a ‘Hold’ rating, citing continued weakness in consumer demand and limited evidence of a recovery in sales volumes.

Jefferies wrote that the second quarter "should be the first with meaningful year-over-year gross margin expansion," forecasting roughly 300 basis points of improvement as peak-cost inventory laps.

While cocoa prices have risen from February lows in recent weeks, the firm noted they remain well below year-ago levels and are unlikely to disrupt the near-term margin outlook because much of the company's cocoa exposure is hedged.

The firm expects shipment timing to weigh on reported results after around two percentage points of sales were pulled forward into the first quarter. As a result, it forecasts a modest decline in second-quarter organic sales despite continued pricing strength.

Jefferies expects pricing to contribute around 11 percentage points of growth in the quarter, more than offset by lower volumes. It forecasts Hershey's volumes to decline about 12% in the second quarter, noting that U.S. tracked chocolate dollar sales fell roughly 4% over the latest 12 weeks while chocolate volumes dropped nearly 19% amid continued consumer sensitivity to higher prices.

The analysts noted that competitor Mars has posted volume gains in four of the past six months, while Hershey plans to respond with increased product innovation. The company's salty snacks business, including LesserEvil and Dot's, is also expected to provide some support.

Looking to the second half of the year, Jefferies expects new marketing campaigns and product launches to support performance, including the America 250 program, a Thanksgiving film promotion, and new Reese's products. However, the firm wrote that it views 2027 as "a measured recovery rather than a snapback."

Jefferies slightly lowered its second-quarter revenue estimate to reflect softer tracked demand while leaving its full-year earnings forecast unchanged.

The firm increased its price target to $190, implying upside from current levels of $175, stating that it remains cautious "given the unresolved volume question and a valuation that already reflects the improved cost backdrop."

Key Takeaways Boot Barn's e-commerce comparable sales rose 14.1% in fiscal 2026 Q4, outpacing same-store sales growth.BOOT's exclusive-brand websites for Cheyenne and CLEO & WOLF enhance product discovery & attract new shoppers.Boot Barn expects 13% e-commerce comparable sales growth in fiscal 2027 from digital investments. Boot Barn Holdings, Inc.’s (BOOT - Free Report) omnichannel strategy remains a key growth driver in the fourth quarter of fiscal 2026, reflecting the company's continued investments in digital capabilities, exclusive brands and customer engagement. While consolidated same-store sales increased 6.1%, e-commerce comparable sales surged 14.1%, led by double-digit growth on BootBarn.com. Management believes its integrated omnichannel model is expanding customer reach while strengthening the brand's long-term competitive position.

A major pillar of the company's strategy is the expansion of its exclusive brands through dedicated digital platforms. During the quarter, Boot Barn launched standalone websites for Cheyenne and CLEO & WOLF, following the earlier launches of Cody James and Hawx. These platforms enhance brand storytelling, improve product discovery and position the exclusive labels as standalone brands. Management said the new websites have delivered encouraging early results while helping attract new customers to the Boot Barn ecosystem.

The retailer is also leveraging artificial intelligence to strengthen its omnichannel capabilities. Artificial intelligence (AI) is being used to drive incremental traffic across online and physical stores, enhance the customer experience, improve operating efficiency and allow employees to focus on higher-value activities. Meanwhile, balanced marketing investments across stores and e-commerce support customer acquisition, contributing to a 12.5% increase in the active loyalty database to 10.8 million members in fiscal 2026.

Management highlighted that approximately 70% of shoppers purchasing through its exclusive-brand websites are entirely new customers, with many later converting into Boot Barn shoppers. Social media platforms, particularly Meta and TikTok, have been instrumental in driving this discovery through targeted marketing.

Boot Barn expects e-commerce comparable sales to increase 13% in fiscal 2027, supported by continued investments in AI, digital marketing and exclusive-brand expansion, reinforcing its omnichannel as a key pillar of its long-term growth strategy.

Boot Barn’s Price Performance, Valuation & EstimatesShares of Boot Barn have lost 8.8% over the past year against the industry’s 1.8% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, BOOT trades at a trailing price-to-sales ratio of 2.10X, above the industry’s average of 1.46X. It has a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Boot Barn’s fiscal 2027 earnings implies year-over-year growth of 16.3%, while the same for fiscal 2028 indicates an uptick of 15.6%. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

Boot Barn currently carries a Zacks Rank #2 (Buy).

Other Key PicksGenesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.

Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.

Tapestry, Inc. (TPR - Free Report) is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.5% and 13.9%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.

Reddit Inc (NYSE:RDDT) is expected to beat Wall Street's second-quarter revenue and EBITDA targets, according to Jefferies, which pointed to strong ad checks and improving user growth heading into the print.

The brokerage said investor conversations point to expectations for revenue and EBITDA to come in mid-single-digit and low-double-digit percent above consensus, respectively.

Jefferies also expects third-quarter guidance to beat consensus by a similar margin to last quarter, when the company's outlook topped the street by low-single-digit percent on revenue and mid-single-digit percent on EBITDA.

User growth remains the central debate for investors. Jefferies believes the market is looking for a sequential increase in quarter-over-quarter net adds in US logged-in daily active users, following growth of 200,000 in the first quarter. Its traffic analysis shows US web and app DAUs rebounded from declines in February and March to growth throughout the second quarter, while total web DAU growth improved to 16% year-over-year from 15% in the first quarter.

With Reddit set to drop its logged-in DAU disclosure starting in the third quarter, Jefferies said a strong second-quarter showing on that metric matters more for shifting investor focus back to monetization.

Jefferies said it will watch for progress on adoption of Reddit's newer low-funnel ad products and automation tools, which its Max offering is expected to help support, along with updated commentary on data licensing strategy ahead of potential 2027 renewal talks with Google and OpenAI.

Other focus areas for the earnings call include DAU growth drivers such as onboarding and personalization improvements, advertiser count growth and diversification into smaller advertisers, ARPU sustainability, and new product launches.

Key Takeaways D-Wave raised its outlook to 2-3 system deals annually, with at least 2 deliveries expected this year.QBTS posted $33.4M Q1 bookings as its sales pipeline and average potential deal size more than doubled.QBTS expects multiyear service, maintenance and cloud contracts to add recurring revenue after system sales. D-Wave Quantum (QBTS - Free Report) , or D-Wave, continues to see growing interest in its Advantage2 annealing quantum computer system. During the May 2026 earnings call, management raised its annual outlook for system sales, now expecting to close 2 or 3 system deals per year, with at least 2 system deliveries anticipated this year.

The stronger outlook comes on the back of record first-quarter bookings of $33.4 million, up 1,994% from the year-ago quarter and 149% from the fourth quarter of 2025. More than two dozen commercial customers accounted for more than 31% of quarterly bookings, while educational and research organizations made up the rest.

The largest transaction was the $20 million annealing quantum computer system sale to Florida Atlantic University in January, which D-Wave views as an important collaboration to further quantum computing experimentation and innovation. During the first quarter of 2026, the dollar value of the company’s sales opportunity pipeline more than doubled from the end of the fourth quarter of 2025, while the average potential deal size also more than doubled over the same period.

Management noted that system sales typically involve multiple stages, such as site preparation, delivery, installation and calibration, before customers begin using the systems. While a significant portion of revenues is recognized when a system is delivered, additional revenues are recognized over time as installation and calibration activities progress.

D-Wave also expects most system transactions to include multiyear revenue components, such as service and maintenance contracts, as well as access to its cloud service. These recurring streams expected to complement revenue generated from the initial system sales.

QBTS’ Peer UpdatesAstera Labs (ALAB - Free Report) has announced a significant expansion of its Taiwan operations and Cloud-Scale Interop Lab. This deepens ALAB’s engineering and operational footprint, and strategic coordination with customers and ecosystem partners in one of the world’s most important semiconductor ecosystems. In collaboration with several AI platform providers, Astera Labs will strengthen the validation and system integration work required to bring purpose-built AI infrastructure to market faster.

Arista Networks (ANET - Free Report) has announced a new portfolio of 1.6T networking platforms designed specifically as the foundation for rack-scale AI infrastructure. The 7060XE7 Series represents Arista’s transition from providing high-performance switches to delivering comprehensive rack-scale systems. By addressing the extreme density, power and thermal efficiency requirements of the AI era, these platforms of ANET enable customers to build scale-up and scale-out AI fabrics optimized for air, liquid and hybrid-cooled environments, maximizing compute density per kilowatt of power.

QBTS’ Price Performance, Valuation & EarningsYear to date, QBTS shares have declined 30.1% compared with the industry’s 4.5% fall.

Image Source: Zacks Investment Research

D-Wave is trading at a forward, five-year Price/Sales (P/S) of 103.29X, significantly higher than its 16.25X median and the industry average of 4.06X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for D-Wave’s 2026 and 2027 loss per share has remained constant in the past 60 days.

Image Source: Zacks Investment Research

D-Wave currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Nasdaq is down 0.92% while the S&P 500 has shed 0.12%.

• Alphabet stock is trading at elevated levels. What should traders watch with GOOG?

BofA Securities analyst Justin Post expects Alphabet to deliver a strong second quarter, driven by cloud momentum, steady search growth and AI-related upside.

Cloud Growth Drives ForecastPost maintained a Buy rating on Alphabet with a $430 price forecast. He expects second-quarter revenue of $102.1 billion and GAAP EPS of $8.38, above Street estimates of $101 billion and $2.90.

The analyst projects third-quarter revenue of $108.8 billion and GAAP EPS of $3.03, above Street estimates of $107.9 billion and $3.02.

Post raised his Cloud growth estimate to 70%, citing strong demand indicators and backlog that suggests at least $230 billion in revenue over the next eight quarters. He also expects full-year 2026 search growth of 16% and Cloud growth of 72%.

AI Assets Support UpsidePost raised his 2026 net revenue estimate by 1% to $427 billion and lifted his EPS estimate by 36% to $19.70. For 2027, he raised net revenue by 3% to $537 billion and EPS by 1% to $14.70.

Post said Alphabet remains well positioned for outsized growth and Cloud margin upside because of its AI assets across models, silicon, consumer distribution and enterprise distribution. He also flagged second-quarter search growth, cloud margins, backlog and capital spending commentary as key items for the earnings call.

Technical AnalysisGOOG is trading 15.7% above its 200-day SMA and 8.4% above its 100-day SMA, which keeps the bigger-picture trend pointed up after a 101.85% run over the past 12 months. The stock is also 4.3% above its 20-day SMA, but only 0.5% above its 50-day SMA — so the near-term tape is tighter and more sensitive to pullbacks.

Top ETF ExposureSignificance: Because GOOG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.

GOOG Price ActionGOOG Stock Price Activity: Alphabet shares were up 0.23% at $371.03 at the time of publication on Thursday, according to Benzinga Pro data.

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Recently, several Wall Street analysts updated their outlooks on Microsoft while maintaining bullish ratings ahead of the company’s quarterly earnings later this month.

Analysts Update Price ForecastsEarnings In FocusMicrosoft is scheduled to report quarterly results on July 29.

Wall Street expects earnings of $4.23 per share, up from $3.65 a year earlier. Revenue is projected to rise to $87.61 billion from $76.44 billion.

BNP Paribas Cuts Price Forecast, Keeps OutperformBNP Paribas expects Microsoft to deliver another quarter of accelerating cloud growth, forecasting Azure revenue growth of about 41%, ahead of the roughly 40% consensus estimate. It also expects stronger Microsoft 365 Copilot adoption during the seasonally stronger fourth quarter, with potential for 7 million to 8 million new paid seats.

Revenue Growth Seen AcceleratingBNP Paribas expects investors to focus on three key topics during the earnings call: Copilot adoption, initial fiscal 2027 operating margin guidance and Microsoft’s capital spending outlook.

The firm forecasts fiscal 2027 revenue growth of nearly 18%, above the Street’s expectation of about 16.8%, driven by continued Azure momentum and expanding artificial intelligence workloads.

However, it also expects operating margins to contract modestly as depreciation expenses rise alongside Microsoft’s AI infrastructure investments.

BNP Paribas increased its estimate for calendar 2026 cash capital expenditures to $195 billion, citing continued component inflation, and expects even higher spending in fiscal 2027.

AI Leadership Supports Long-Term ViewDespite trimming its valuation, BNP Paribas said Microsoft’s leadership across cloud computing, enterprise software and generative AI continues to support a constructive long-term outlook.

The firm believes Azure, Microsoft 365, GitHub, Dynamics, cybersecurity products and the company’s partnership with OpenAI position Microsoft to benefit from sustained enterprise AI adoption.

Price ActionMSFT Stock Price Activity: Microsoft shares were up 1.13% at $400.10 at the time of publication on Thursday, according to Benzinga Pro data.

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Boeing (BA 1.26%) delivered 64 jets in June, four more jets than it delivered in May and the same month last year. The number is part of the company's 314 jet deliveries in the first half of 2026. Its commercial delivery performance is a good sign of its financial recovery. Pushing out this volume of airline jets has a massive, direct impact on the company's free cash flow (FCF) trajectory.

While Boeing's overall operating margin remains lean (only 18.1% in the first quarter) as it navigates program overruns and defense drags, deliveries are the raw fuel for its balance sheet. A strong June demonstrates the manufacturing discipline required to chip away at its post-pandemic debt and secure sustainable, positive FCF.

Here is a breakdown of what these delivery numbers mean for Boeing's cash position moving forward.

Image source: Getty Images.

Boeing is unlocking sunk inventory The cash flow cycle is highly back-end loaded in aerospace manufacturing. Predelivery payments are generally around 30% of the purchase price, so manufacturers pay for much of the parts, labor, and supply chain overhead long before the plane leaves the tarmac. When the keys are actually handed over to the customer, the remaining 70% of the plane's total purchase price is collected.

Pushing 64 jets out the door in a single month means Boeing is successfully liquidating parked, fully built inventory and turning it into immediate cash. In the first quarter, it reported an earnings per share (EPS) loss of $0.11, and even that was a 31% improvement year over year.

Validating its free cash flow target In the company's first-quarter earnings call, Boeing chief financial officer Jay Malave projected full-year 2026 FCF to finish between $1 billion and $3 billion. That's a big change from the $1.5 billion FCF loss in the first quarter, as the first half of the year saw heavy operational expenditures and narrower operating margins.

Strong June momentum serves as proof of concept for the Street, validating that the era of aggressive cash burn is fading and that the $1 billion to $3 billion FCF target is highly achievable if execution remains steady. The company had consecutive positive FCF quarters in the second half of 2025.

Malave said that because of cash outflows in the first half of the year, achieving the full-year FCF target depends on a back-end-loaded second half, driven heavily by increased delivery volumes. As it is, Boeing booked a net total of ⁠113 new orders in June and a total of 408 new orders this year.

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Supply chain and delivery health are improving Investors are still playing a wait-and-see game with Boeing, as its shares are flat so far this year.

To generate robust, multibillion-dollar FCF plateaus in the coming years, Boeing needs volume stability. June's delivery numbers (which included 42 of the workhorse 737 MAX models) provide a critical insight into its operations. Delivering at this rate demonstrates that major supply chain and parts delays are no longer the absolute ceiling they were in previous quarters.

This operational rhythm sets the stage for Boeing's upcoming push to lift 737 production from 42 to 47 aircraft per month, now that the Federal Aviation Administration (FAA) has approved that change. A synchronized supply chain executing higher monthly production rates is the primary structural driver that will expand program-level cash margins moving forward.

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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) has spent the last two months digesting a strong Q1 earnings report, with the back half of fiscal 2027 looking constructive. Bank of America has flagged Nvidia’s networking silicon as the next multi-billion-dollar business inside the data center, and our model agrees the market is not fully pricing it in.

Our 24/7 Wall St. price target for NVDA is $261.11, implying 23.28% upside from $211.80. Our recommendation is buy, with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $211.80 24/7 Wall St. Price Target $261.11 Upside 23.28% Recommendation BUY Confidence Level 90% A Summer Reset That Reopened the Runway NVDA is up 7.55% in the past week and 13.7% year to date, though shares sit roughly 28% below the $236.26 52-week high.

Q1 FY2027, reported on May 20, 2026, delivered: revenue of $81.615 billion grew 85.23% year over year, non-GAAP EPS came in at $1.87 versus $1.7738 consensus, and management guided Q2 to $91.0 billion. Data center networking alone was $14.8 billion, up 199% year over year. That is the line item Bank of America keeps circling.

Why Bulls See $300 and Beyond The bull case rests on three levers. First, networking scaled from roughly $7.25 billion in Q2 FY26 to $14.8 billion last quarter; Bank of America’s $20B business framing is not aggressive at that trajectory.

Second, supply commitments hit $119 billion, up from $50.3 billion two quarters ago, effectively pre-signing demand.

Third, capital return: an $80 billion buyback authorization landed in May on top of the $38.5 billion remaining.

Jensen Huang stated: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” The Street’s $301.62 average target, backed by 48 Buy ratings, sits within reach if Blackwell 300 and Vera Rubin ramp cleanly (a scenario The Next Nvidia Playbook has been mapping).

What Could Go Wrong Q2 guidance explicitly excludes China data center compute, and forward revenue was zero from H20 shipments this quarter versus $4.6 billion a year earlier. A prolonged export freeze caps the top line. Beta of 2.211 means any hyperscaler capex pause hits NVDA harder than most.

Insiders have been net sellers across 26 recent transactions. The counterfactual: the $4.5B H20 charge that crushed year-ago margins is gone, gross margin expanded to 75%, and free cash flow of $48.55 billion in a single quarter absorbs macro noise. A bear case scenario lands near $227.02, still above current levels.

How NVIDIA Compares to AMD and Broadcom Advanced Micro Devices (NASDAQ:AMD) is the direct GPU competitor. AMD’s Q1 FY26 data center revenue of $5.78 billion grew 57% year over year, but NVDA’s data center segment is more than $75 billion in a single quarter. AMD trades at a trailing P/E near 206, making NVDA’s 32 multiple look pedestrian.

Broadcom (NASDAQ:AVGO) is the custom accelerator and AI networking counterpoint. AVGO printed $10.8 billion in AI semiconductor revenue last quarter, up 143%, and guided Q3 AI to $16.0 billion. It validates the size of the networking pie rather than shrinking NVDA’s slice.

Company Forward P/E Latest Qtr Rev Growth NVIDIA 24 85.2% AMD ~35 37.9% Broadcom ~40 47.9% The peer set makes our $261.11 target look conservative.

Our Take on NVIDIA at Current Levels Our 24/7 Wall St. price target of $261.11 is a buy at 90% confidence. Networking is real, compounding at triple digits, and the market is still valuing NVDA on compute alone.

The setup looks constructive if hyperscaler capex guides stay firm through the next TSMC report. The thesis weakens if China export policy tightens further and Q2 revenue prints below the $91 billion guide. Neither looks likely right now.

Here is where NVDA could trade if execution holds.

Year 24/7 Wall St. Price Target 2026 $235 2027 $266 2028 $301 2029 $341 2030 $386 These projections assume NVIDIA sustains data center dominance and networking scales as guided. Significant upside would come from an accelerated Vera Rubin cycle; downside from a sustained hyperscaler capex reset.

Contact [email protected] for any questions or corrections.

• Johnson & Johnson stock is trading at elevated levels. What’s next for JNJ stock?

With ex-Stelara growth of more than 14% year-on-year and eight brands delivering double-digit growth in the second quarter, the company’s Innovative Medicine (IM) momentum is "building into 2027, according to RBC Capital Markets.

The Johnson & Johnson Analyst: Analyst Shagun Singh maintained an Outperform rating and price target of $287.

The Johnson & Johnson Thesis: The company delivered better-than-expected sales and earnings, driven by IM strength, while MedTech missed on cardio weakness, Singh said in the note.

Check out other analyst stock ratings.

Johnson & Johnson delivered another quarter of mid-teens ex-Stelara IM growth, he added.

Stelara now contributes only 4% of IM sales, while the remaining 96% grew more than 14% year-on-year in the quarter, "highlighting the durability of JNJ’s growth engine," the analyst stated.

He highlighted:

Icotyde reached 11,000 patients Tremfya delivered its first quarter of $2 billion in sales, up 71% year-on-year Tecvayli sales grew 56% year-on-year INLEXZO’s new patient insertions rose 75% sequentially, outperforming all recent competitive launches "We believe the breadth of IM’s launch portfolio provides strong visibility into 2027+ acceleration and supports JNJ’s path to becoming the number one oncology company by 2030 as well as progress towards double-digit growth by decade’s end," Singh wrote.

While the stock declined following the earnings release due to the underperformance of MedTech, this business is positioned for a recovery in the back half of 2026, "with three of four businesses accelerating in Q2’26 and procedure volumes intact," he further stated.

JNJ Price Action: Shares of Johnson & Johnson had risen by 0.84% to $249.09 at the time of publication on Thursday.

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Key Takeaways Phillips 66 may gain from tight fuel markets and elevated crack spreads supporting refining margins.Refinery closures and Hormuz disruptions tightened supply as gasoline and jet fuel demand stayed robust.PSX's minimal Middle East crude exposure supports steady refinery utilization amid supply disruptions. Phillips 66 (PSX - Free Report) is an integrated energy player with diversified operations spanning midstream, refining and chemicals. The company is emerging as one of the beneficiaries of supply disruptions through the Strait of Hormuz, a critical chokepoint that accounts for nearly one-fifth of global energy flows. Renewed geopolitical tensions between the United States and Iran have once again raised uncertainty regarding shipping traffic through the Strait of Hormuz, reigniting supply concerns.

Refined product markets were already tightening ahead of the conflict due to the loss of refining capacity following the closures of Phillips 66's Los Angeles refinery and Valero Energy's Benicia refinery in the United States, along with several other refineries in Europe. Supply disruptions through the Strait of Hormuz have amplified the tightness of refined-product markets at a time when global refining capacity remains constrained and demand for products such as gasoline and jet fuel stays robust.The 3-2-1 crack spread, widely known as an indicator of refining profitability, has risen significantly since the start of the conflict and remains at elevated levels, creating a highly favorable operating environment for U.S. refiners, including Phillips 66.

In fact, in its first-quarter earnings call, management highlighted that tight product markets are expected to support refining margins for the rest of the year. Moreover, PSX is expected to remain largely unaffected by crude-supply disruptions, as it sources the majority of its crude from Canada, the United States and Latin America, with only about 1% coming from the Middle East. This allows the company to sustain high refinery utilization levels and benefit from a constructive refining environment. However, the increase in crude oil prices due to renewed tensions in the Middle East remains a cause of concern, as it may raise feedstock costs.

PARR & VLO: Other Refining Players to Benefit From Tight Fuel MarketsPar Pacific Holdings (PARR - Free Report) operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho; refining operations in Hawaii, Wyoming, Washington and Montana; and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products. Management noted that Par Pacific has no crack spread hedges in place, which should enable it to benefit from rising refining margins.

Valero Energy (VLO - Free Report) is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast and the Midcontinent, offering feedstock sourcing flexibility, with management emphasizing that crude availability is not a significant constraint for the company. Moreover, its Gulf Coast access enables it to sell refined products in high-demand markets and capitalize on the current increase in export demand for distillates driven by the supply disruptions in the Middle East. This positions Valero to benefit from elevated refining margins and strong international demand for refined products.

PSX’s Price Performance, Valuation & Estimates

Phillips 66 shares have gained 67.5% over the past year compared with the industry's 53.4% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 13.72X. This is above the broader industry average of 5.95X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PSX's 2026 earnings has seen upward revisions over the past seven days.

Image Source: Zacks Investment Research

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

Key Takeaways Sony says entertainment, IP and creation technology now generate 67% of consolidated sales.SONY's PlayStation tops 125M monthly active users as Crunchyroll exceeds 21M paid subscribers.Sony says AI supports creators by improving workflows, production efficiency and user experiences. Sony Group Corporation (SONY - Free Report) continues to strengthen its long-term growth strategy by expanding its entertainment ecosystem, enhancing intellectual property (IP) value and investing in technologies that support creators. The company stated that its creative entertainment vision remains central to its long-term strategy, combining technology with creativity to deliver new experiences across digital and physical environments while maximizing the value of its IP portfolio. Entertainment, IP and creation technology now account for 67% of Sony's consolidated sales, reflecting the company's ongoing portfolio transformation.

SONY highlighted the strength of its entertainment businesses across gaming, music, pictures and anime. The PlayStation platform now has more than 125 million monthly active users worldwide, supported by continued engagement and a broad portfolio of content. The music business continues to benefit from relationships with artists, digital streaming platforms and global audiences, while the pictures business remains focused on producing films and television content and expanding collaborations through adaptations of gaming IP. Sony also emphasized that anime remains an important growth area, supported by collaboration across its businesses in production, marketing, fan engagement and worldwide distribution.

Crunchyroll continues to expand its global presence with more than 21 million paid subscribers and a library exceeding 50,000 episodes available in multiple languages. Sony is also strengthening its position in anime through strategic investments and partnerships while continuing to invest in music IP through acquisitions and collaborations.

AI is another key element of Sony's long-term entertainment strategy. The company stated that AI is intended to enhance human creativity rather than replace creators. Across PlayStation, Sony Pictures and Sony Music, AI is being deployed to improve production efficiency, accelerate workflows, support content creation and enhance user experiences while maintaining creative control. Sony believes these technologies will enable more diverse content, increase productivity and help creators pursue projects that were previously limited by cost or production timelines.

Management stated that the combination of entertainment assets, strong IP, creator-focused technology and continued investment across gaming, music, anime and film positions Sony to pursue future growth opportunities while adapting to changes across the global entertainment industry.

Taking a Look at SONY’s CompetitorsDolby Laboratories, Inc. (DLB - Free Report) is gaining from solid licensing performance. The company’s licensing engine remains tied to expanding adoption of Dolby Atmos and Dolby Vision across streaming platforms, TVs, mobile devices and autos, with Dolby Vision 2 setting up an upgrade cycle as sets begin shipping later in fiscal 2026. Momentum in automotive and sports-focused streaming, plus early monetization from the video distribution program and Dolby OptiView, supports the long-term opportunity. For fiscal 2026, management continues to expect Dolby Atmos, Dolby Vision and imaging patents to grow about 15% and represent nearly half of licensing revenue.

Sonos, Inc. (SONO - Free Report) is returning to revenue growth as its core system proposition improves and newer products broaden entry points into the ecosystem. Demand for key speakers and home theater products has supported its second-quarter fiscal 2026 results, with faster growth in EMEA and APAC helping offset a mixed U.S. backdrop. Management is pairing the product cycle with tighter operating discipline, share repurchases and a focus on direct customer relationships and the installer channel. For the third quarter of fiscal 2026, SONO expects revenues in the range of $355 million to $375 million, indicating year-over-year growth of 3% to 9%, with 6% growth at the midpoint.

SONY’s Price Performance, Valuation & EstimatesShares of SONY have lost 15.1% in the past year compared with the Zacks Audio Video Production industry’s decline of 15.4%.

Image Source: Zacks Investment Research

SONY seems overvalued, as suggested by the Value Score of A. In terms of the forward 12-month Price/Sales ratio, SONY is trading at 1.56, slightly higher than the industry’s multiple of 1.55.

Image Source: Zacks Investment Research

For SONY, earnings estimates for the current year have been revised downward in the past 60 days.

Image Source: Zacks Investment Research

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

Chip giant Taiwan Semiconductor Manufacturing Co. is supercharging an already massive US investment spree – pledging an additional $100 billion to meet surging AI demand.  

The move brings TSMC’s investment in the US to $265 billion and comes as the company posted second-quarter earnings that blew past market expectations Thursday.

TSMC, which supplies powerful chips that are critical for tech giants like Apple and Nvidia, boosted its global capital spending plan for 2025 to between $60 billion and $64 billion.

TSMC Chairman and Chief Executive C.C. Wei is doubling down on American investment with an additional $100 billion. AFP via Getty Images That record level marks an increase of about 7% to 14% from its previous forecast.

Still, TSMC’s US-listed shares slipped 3% after the earnings report as the market continues to be squeamish about lofty valuations and questions about return on investment for the AI industry.

The spending spree comes in response to demand from top US customers and could fund the addition of four more advanced facilities to TSMC’s existing Arizona site, according to the company’s Chair and CEO C.C. Wei.

It’s “the largest foreign direct investment in US history,” he said.

TSMC originally pledged $100 billion last year to boost production in the US as part of a four-year project announced alongside President Trump. That move came amid Trump’s threats to impose harsh tariffs on computer chips and other key products while seeking to secure better deals for the US economy.

Commerce Secretary Howard Lutnick hailed Thursday’s announcement, saying it “will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America.” 

The record investment plans firmly place the TSMC atop the global semiconductor supply chain and provide the latest signal the AI boom isn’t slowing down anytime soon. 

The earnings win came days after chip equipment supplier ASML also upped its annual sales forecast, citing strong AI demand.

TSMC’s spending spree could fund the addition of four more advanced facilities. Bloomberg via Getty Images Earlier this year, Taiwan and the US reached a trade and investment agreement that aims to further the Trump administration’s effort to rebuild domestic manufacturing.

Expanding in the US gives TSMC a stronger presence near its biggest customers while allowing the company to keep its most advanced chipmaking technology in Taiwan.

Wei said the company’s US expansion wasn’t a short-term decision but the result of years of planning – chip fabrication plants cost tens of billions of dollars and take years to complete as companies must forecast future demand long before construction begins.

“We are using multiple levers to do everything we can, wherever we can, however we can, to maximize support to all our customers,” Wei said.

The Taiwanese chip giant now expects full-year revenue growth to come in at slightly more than 40%, raising its outlook from an earlier projection of more than 30%.

The optimism appeared to be backed up by TSMC’s latest quarterly results. Net profit surged 77% from a year earlier to 706.56 billion New Taiwan dollars, or $21.98 billion, while revenue climbed 36% as AI infrastructure spending and consumer electronics stockpiling lifted sales during what is usually a softer quarter.

Key Takeaways Danaher is expected to report Q2 revenues of $6.08 billion, up 2.4% year over year.DHR's Biotechnology segment is projected to grow 5.5%, supported by bioprocessing demand.Danaher's Masimo acquisition expanded its diagnostics portfolio, while costs and debt remain headwinds. Danaher Corporation (DHR - Free Report) is scheduled to release second-quarter 2026 results on July 21, before market open.

The Zacks Consensus Estimate for revenues is pegged at $6.09 billion, which indicates an increase of 2.6% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at $1.84 per share, which has increased a penny in the past seven days. The estimate indicates an increase of 2.2% from the figure reported in the year-ago quarter. The company’s bottom line surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.7%.

Let’s see how things have shaped up for Danaher this earnings season.

Key Factors and Estimates for Q2Strength in the bioprocessing business, driven by an increase in demand for consumables from large pharmaceutical customers in Western Europe and China, is expected to have aided the Biotechnology segment. The segment’s performance is also likely to have benefited from solid momentum in the medical filtration and research consumables business. For the second quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.95 billion, indicating a 5.5% rise from the year-ago reported number.

Strength in the clinical diagnostics businesses, led by growth in clinical lab and pathology diagnostics units, is expected to drive the Diagnostics segment’s results. However, softness in the molecular diagnostics business due to sluggish demand for respiratory tests is likely to have been a spoilsport. For the second quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.33 billion, indicating a 0.7% rise from the year-ago reported number.

Solid momentum in filtration and consumables businesses is likely to have boosted the performance of the Life Sciences segment in the quarter. For the second quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.79 billion, indicating a 0.8% rise from the year-ago reported number.

In June 2026, Danaher acquired Masimo Corp. for $9.9 billion. The addition of Masimo’s advanced sensor technology and AI-enabled monitoring enabled Danaher to enhance its diagnostics portfolio. The buyout is expected to have boosted DHR’s performance during the quarter.

However, the escalating costs and operating expenses, due to increasing input costs and product mix changes, are likely to have weighed on DHR’s bottom line in the to-be-reported quarter. Also, higher interest expenses associated with the company’s high debt are likely to prove detrimental to its profitability in the quarter.

Earnings WhispersOur proven model predicts an earnings beat for DHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.

Earnings ESP: Danaher has an Earnings ESP of +0.62% as the Most Accurate Estimate is pegged at $1.85 per share, which is higher than the Zacks Consensus Estimate of $1.84. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: DHR currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to ConsiderHere are some other companies within the broader Medical sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter fiscal 2026 results on Aug. 11.

Cardinal Health’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.3%.

CVS Health (CVS - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on Aug. 5.

CVS Health’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.8%.

West Pharmaceutical Services (WST - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on July 23.

West Pharmaceutical’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.4%.

Embedding GPU-accelerated intelligence enables enterprises to easily discover, govern, and activate data for AI and analytics at the source

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today announced it has acquired DataPelago, a California-based AI data infrastructure company recognized for its innovative approach to eliminating data processing bottlenecks for AI and analytics workloads. The acquisition marks a foundational expansion of NetApp's portfolio, enabling GPU-accelerated data processing aligned directly with the storage layer. With this acquisition, NetApp establishes itself as the company that makes zero-copy activation of enterprise data for AI real.

AI is the defining platform shift of our era, but enterprises are discovering that their greatest bottleneck is preparing, governing, and activating their data fast enough to put AI into production. The key to accomplishing this objective is to enable accelerated computing where the data is created and stored. DataPelago solves this challenge by fundamentally reimagining where accelerated compute happens: at the data layer, not above it.

"As AI models and the chips that power them get ever more effective, enterprises need data infrastructure that is just as intelligent and powerful to harness the potential of their data," said George Kurian, Chief Executive Officer at NetApp. "NetApp is leading the industry in helping customers drive innovation and generate business value by giving them full command of their most important asset: their data. With DataPelago, we are extending our ability to help customers understand and process their data with the agility required to unleash competitive advantage.”

DataPelago's core technology, Nucleus, is a universal data processing engine that uses heterogeneous accelerated computing across CPUs and GPUs to process data where it lives. By processing data at the storage layer rather than moving it to external compute clusters, Nucleus reduces infrastructure costs by up to 80 percent and delivers performance up to 10 times faster than conventional approaches. In addition, by not requiring customers to copy their data from their operational systems to AI-systems, DataPelago eliminates the single biggest bottleneck in enterprise AI deployment. DataPelago’s technology is delivering value at large enterprises across multiple industries, accelerating demanding workloads while improving infrastructure efficiency at scale.

"DataPelago is on a mission to eliminate the data processing bottlenecks that prevent AI innovation from reaching its full potential," said Rajan Goyal, Founder and Chief Executive Officer of DataPelago. "Joining NetApp gives us the opportunity to combine our breakthrough processing technology with the industry's best data infrastructure portfolio. Enterprises have invested billions in GPUs and AI models, but their data remains fragmented, leaving valuable computing resources to sit idle rather than putting these investments to work. Together, we’re positioned to help customers simplify and accelerate AI deployment at scale."

"DataPelago's Nucleus engine brings software-defined acceleration directly to the storage layer, processing data across CPUs and GPUs so enterprises can prepare, govern, and activate their data for AI without moving it. This is true zero-copy activation," said Syam Nair, Chief Product Officer at NetApp. "NetApp manages more enterprise data across more environments than anyone in the industry. The next phase of AI will be won by those who make that data work at the source, and the DataPelago team brings the technical depth and velocity to get us there faster."

Following the acquisition, DataPelago will operate as a wholly owned subsidiary of NetApp. This news signals a continued growth trajectory for NetApp, following recent industry-leading partnerships with Cisco, Google Cloud, Red Hat, and SK Telecom, among others.

"Safe Harbor" Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the anticipated benefits of the acquisition of DataPelago, including the ability to align GPU-accelerated data processing with the storage layer and enable zero-copy activation of enterprise data for AI; the ability of the technologies to reduce infrastructure costs, accelerate performance, and eliminate data processing bottlenecks for enterprise AI deployment; our business, economic and market outlook; our overall future prospects; demand for our AI solutions and other offerings; and our ability to deliver increasing results and value for our stakeholders. These and other important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the sections titled "Risk Factors" in our most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. All statements made in this release are made only as of the date set forth at the beginning of this release. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.

Statement of Product Direction

This press release discusses NetApp's vision for future innovation, including the anticipated alignment of DataPelago's technology with NetApp’s portfolio. This information is shared solely for informational purposes and should not be relied upon in making purchasing decisions. NetApp makes no commitment and has no obligation to develop or deliver any products, services, integrations, or any related features, material, code or functionality described herein, including any capabilities resulting from the acquisition of DataPelago. The development, release and timing of any features or functionality for NetApp products and services, including those offering DataPelago's technology, remains at the sole discretion of NetApp. NetApp's strategy and possible future developments, product and platform directions, and functionality, including plans related to DataPelago's technology, are all subject to change without notice. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.

About NetApp

For more than three decades, NetApp has helped the world’s leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.

At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.

Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world’s largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.

With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That’s why the world’s most forward-thinking enterprises trust NetApp to turn intelligence into advantage.

Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

About DataPelago

DataPelago is driving the data acceleration revolution that AI demands. Today, AI's relentless hunger for data acceleration at massive scale has created the ultimate chokepoint — without economically scaled data processing, AI innovation itself will be throttled. At DataPelago, we’re unleashing breakthrough thinking to transform data processing economics and ignite the next wave of AI-powered revolution.

DataPelago Nucleus is the world's first universal data processing engine built for accelerated computing, purpose-built to process any type of data, operate across any hardware, and support any query engine, delivering new price/performance benefits that make it viable to extract value from all the data in the world, igniting an AI-powered revolution.

Key Takeaways IBKR is expected to post higher Q2 earnings and revenues when it reports results on July 21.Interactive Brokers saw June DARTs jump 53% y/y, with client accounts up 34% and client equity up 40%.IBKR's commission revenues and NII are projected to rise on strong trading and lending demand. Interactive Brokers Group, Inc. (IBKR - Free Report) is set to report second-quarter 2026 results on July 21, after market close. Its earnings and revenues are expected to have improved year over year.

In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate. Results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.

IBKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 11.7%.

IBKR’s Earnings & Sales Projections for Q2The Zacks Consensus Estimate for Interactive Brokers’ earnings has been revised 3.4% higher to 61 cents per share in the past seven days. The estimate indicates a 19.6% rise from the year-ago quarter’s reported number.

The consensus estimate for sales is pegged at $1.66 billion, suggesting a year-over-year increase of 12.2%.

Interactive Brokers’ Other Key Q2 EstimatesClient trading activity remained robust in the second quarter as investors actively repositioned portfolios amid shifting expectations surrounding artificial intelligence, persistent inflation, geopolitical uncertainties and a more hawkish Federal Reserve. Heightened volatility encouraged trading across equities, options, fixed income, foreign exchange and commodities.

IBKR’s monthly brokerage metrics point to continued momentum, with DARTs rising sharply year over year throughout the quarter, while client accounts and customer equity also expanded at a healthy pace. June alone recorded 5.27 million DARTs, up 53% year over year, alongside a 34% increase in client accounts and 40% growth in client equity.

Thus, strong trading volumes across stocks, options and futures, combined with continued customer acquisition, are expected to have driven higher commission income for IBKR. The Zacks Consensus Estimate for commission revenues stands at $605 million, implying 17.2% year-over-year growth.

The company’s net interest income (NII) is also expected to have been a major growth driver in the quarter. Customer margin loan balances continued to expand during the quarter, reflecting healthy demand for leverage amid strong equity markets, while customer credit balances remained elevated as IBKR attracted new assets. The Federal Reserve kept benchmark interest rates unchanged in the quarter but maintained a hawkish stance by signaling another potential rate increase later this year, allowing interest yields on margin loans and client cash balances to remain favorable. A solid lending scenario, along with stabilizing funding and deposit costs, is expected to have positively impacted IBKR’s NII in the quarter. The consensus estimate for NII is $956 million, indicating an 11.2% increase from the prior-year quarter.

Revenue from other fees and services is also expected to have improved, supported by a larger client base, higher market data subscription fees, increased exchange-related payments and greater demand for ancillary brokerage services as trading activity remained elevated. The consensus estimate for this line item is $74 million, suggesting a 19.4% year-over-year increase.

On the expense side, operating costs are expected to have increased as IBKR continues investing in technology infrastructure, platform enhancements, artificial intelligence capabilities, product innovation, cybersecurity, customer support and regulatory compliance.

What Our Model Unveils for IBKRAccording to our quantitative model, the chances of Interactive Brokers beating earnings estimates this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

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

Earnings ESP: Interactive Brokers has an Earnings ESP of +3.28%.

Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Finance Stocks Worth a LookHere are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:

Zions Bancorporation (ZION - Free Report) is scheduled to announce second-quarter 2026 results on July 20. The company carries a Zacks Rank #2 (Buy) at present and has an Earnings ESP of +0.53%.

Quarterly earnings estimates for Zions have been unchanged at $1.57 per share over the past week.

The Earnings ESP for Prosperity Bancshares (PB - Free Report) is +1.76%, and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2026 results on July 29.

Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been unchanged at $1.54 per share.

Key Takeaways KeyCorp's Q2 earnings are expected to rise 20% y/y, while sales are projected to increase 8%.Robust C&I loan demand and stable funding costs may lift KeyCorp's NII 10% to $1.26 billion.Higher trust, deposit and payments income may offset weaker mortgage banking fees at KeyCorp. KeyCorp (KEY - Free Report) is slated to announce second-quarter 2026 results on July 21, before the opening bell. The overall impressive lending scenario in the quarter is likely to have supported the company’s net interest income (NII).

Per the Fed’s latest data, the demand for commercial and industrial (C&I) loans (accounting for roughly 50% of KeyCorp’s average loan balances) was robust in the to-be-reported quarter, while the demand for consumer loans was comparatively modest. Thus, this is likely to have supported the company’s overall loan growth in the second quarter.

The Zacks Consensus Estimate for KEY’s average earning assets is pegged at $172.2 billion, indicating a 1.3% rise from the prior-year quarter.

After cutting rates in 2025, the Federal Reserve has paused interest rate cuts and signaled a hike later in the year. This, along with a solid lending scenario, decent economic growth and stabilizing funding/deposit costs, is expected to have supported KEY’s NII.

The consensus estimate for NII (on a fully tax-equivalent basis) is pegged at $1.26 billion, indicating a year-over-year jump of 10%.

Other Factors to Influence KeyCorp’s Q2 EarningsNon-Interest Income: The second quarter was challenging for the mortgage banking business. It was characterized by elevated mortgage rates, hovering at mid-6% range, and low affordability. While purchase volumes faced pressure from inventory constraints, refinancing activity saw a slight boost as rates were lower than the prior-year quarter level. Given this, income from KEY’s mortgage banking business is less likely to have recorded much improvement.

The Zacks Consensus Estimate for commercial mortgage servicing fees of $58 million implies a 17.1% year-over-year decline. Likewise, the consensus estimate for consumer mortgage income of $13.26 million indicates an 11.6% fall. Management projects commercial mortgage servicing fees of $50-$60 million for the second quarter.

As the quarter witnessed a solid increase in asset inflows, the consensus estimate for KEY’s trust and investment services income of $160.9 million indicates a 10.2% rise from the prior-year quarter.

Higher client activity and volatility in the capital markets, along with industry-wide decent deal-making activities, an impressive IPO market and solid bond issuances, are expected to have supported KeyCorp’s corresponding fee income in the to-be-reported quarter. The consensus estimate for investment banking and debt placement fees of $181.2 million indicates a 1.8% rise. The company projects the metric between $175 million and $180 million.

Management anticipates average deposit balances to be stable to slightly up, with June 30 ending balances expected to be higher. As such, the Zacks Consensus Estimate of $78.9 million for service charges on deposit accounts implies 8.1% year-over-year growth. With an improvement in consumer spending in the to-be-reported quarter, the consensus estimate for cards and payments income of $87.5 million indicates growth of 3%.

Overall, the consensus estimate for KeyCorp’s total non-interest income of $709.4 million suggests an improvement of 2.8% from the prior-year quarter.

Expenses: KeyCorp’s efforts to reorganize operations and exit unprofitable/non-core businesses have helped it save costs in the past. Also, the company’s initiatives to drive operational efficiency are likely to have curbed expense growth in the to-be-reported quarter. Yet, investments in franchises and technological upgrades are expected to have resulted in a rise in total non-interest expenses.

Asset Quality: KEY is unlikely to have set aside a substantial amount for potential loan delinquencies in the second quarter, given the modest improvement in the operating environment, supported by resilient economic growth, broadly stable credit conditions and the announced ceasefire in the Middle East. However, robust lending and persistently higher inflation are likely to have weighed on provision numbers.

What the Zacks Model Predicts for KeyCorpPer our proven model, the chances of KeyCorp beating the Zacks Consensus Estimate for earnings are low this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

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

Earnings ESP: The Earnings ESP for KeyCorp is -0.34%.

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

Q2 Earnings & Sales Growth Expectations for KeyCorpThe Zacks Consensus Estimate for KEY’s earnings is pegged at 42 cents per share, which has been unchanged over the past week. The figure indicates a 20% rise from the prior-year quarter.

The consensus estimate for quarterly sales is pegged at $1.98 billion, indicating a year-over-year increase of 8%.

KeyCorp’s Peer Stocks Worth ConsideringHere are a couple of KEY’s peers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Truist Financial (TFC - Free Report) is scheduled to announce second-quarter 2026 results tomorrow. The company has a Zacks Rank #3 at present and an Earnings ESP of +0.23%.

Quarterly earnings estimates for Truist Financial have been unchanged at $1.08 per share over the past week.

The Earnings ESP for Regions Financial (RF - Free Report) is +0.25% and it carries a Zacks Rank of 3 at present. The company is slated to report second-quarter 2026 results tomorrow. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past seven days, the Zacks Consensus Estimate for Regions Financial’s quarterly earnings has been unchanged at 64 cents.

Key Takeaways Microchip shares are up 35.3% YTD as a turnaround, recovery and AI exposure lift prospects.Distributor restocking and book-to-bill above 1 are improving Microchip's revenue visibility.Microchip sees data center solutions revenue rising about 65% to roughly $500 million in 2026. Microchip (MCHP - Free Report) shares have jumped 35.3% year to date (YTD), outperforming the Zacks Computer and Technology sector’s appreciation of 15.8%. The outperformance can be attributed to a combination of a cyclical semiconductor recovery, execution on management's turnaround plan, improving profitability and growing AI, as well as data center exposure. However, the company’s prospects remain challenging due to supply chain constraints, rising costs and stiff competition from the likes of Texas Instruments (TXN - Free Report) , Analog Devices (ADI - Free Report) and On Semiconductor (ON - Free Report) .

YTD, Microchip shares have underperformed Texas Instruments, Analog Devices and On Semiconductor, shares of which have returned 73.6%, 44.1% and 70%, respectively. Nevertheless, we believe MCHP’s share price is well-poised to appreciate, driven by expansion into higher-value AI infrastructure as well as recovery across industrial and automotive end markets. So, what should investors do with the stock? Let’s dig deep to find out.

MCHP Stock’s Price Performance
Image Source: Zacks Investment Research

MCHP’s Prospects to Ride on AI Tailwinds and Inventory RecoveryImproving fundamentals, along with rightsizing of manufacturing footprint, overhauling of distribution strategy and improving customer relationships, bodes well for Microchip’s prospects. This, along with reducing inventory level, a fall in net leverage below 3 times and strong free cash flow generation ability, bodes well for the company’s prospects.

Microchip has been benefiting from reducing inventory levels and expects inventory to be aligned with its long-term target in a short span of time. Management stated that inventory has reduced from 201 days in December to 185 days in March, while distributor inventory declined to 26 days, near the low end of the company’s historical range. MCHP management stated distributors have begun restocking, with April representing the highest booking month in almost four years. The company now expects book-to-bill well above 1, which reflects improving revenue visibility.

Microchip expects a broad-based recovery with strength across industrial, automotive, aerospace & defense, data center, and communications, which reduces investor concerns over cyclicality. Industrial remains roughly one-third of the company’s revenues, while automotive contributes about 17%. As customer inventories normalize, these historically strong markets should continue recovering alongside factory automation, electrification and embedded computing. MCHP is well positioned to benefit from the growing demand for mixed-signal microcontrollers (MCUs), leveraging its expanding footprint in industrial embedded control, broad product portfolio and total system solutions strategy. Mixed-signal MCUs remain the company's largest product category, accounting for nearly 50% of fiscal 2026 revenues, highlighting their importance to long-term growth.

Data Center prospects are most noticeable as Data Center & Compute already represents 18% of company revenues. MCHP expects the dedicated Data Center solutions business to grow from roughly $303 million in calendar 2025 to approximately $500 million in calendar 2026 (about 65% growth), driven by strong momentum in PCIe Gen6 switches, expansion into PCIe retimers, new CXL memory controllers and storage controller growth driven by AI inference. In fact, Microchip has disclosed eight Gen6 switch design wins and expects production ramps during fiscal 2027, including one design expected to generate roughly $100 million annually.

MCHP’s Earnings Estimate Revision Shows Positive TrendThe Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $3.09 per share, up by a penny over the past 30 days and indicating 90.85% growth over fiscal 2026’s reported figure. The consensus mark for fiscal 2027 revenues is pegged at $6.23 billion, suggesting 32.26% growth from fiscal 2026’s reported figure.
 

Microchip expects first-quarter fiscal 2027 net sales between $1.442 billion and $1.469 billion, which reflects 35.3% year-over-year growth at the midpoint and 11% sequentially. The company expects non-GAAP earnings of 67-71 cents per share.

The Zacks Consensus Estimate for first-quarter fiscal 2027 earnings is pegged at 69 cents per share, unchanged over the past 30 days and indicating 159.26% growth over the year-ago quarter’s reported figure. The consensus mark for fiscal first-quarter revenues is pegged at $1.46 billion, suggesting 35.39% growth from the year-ago quarter’s reported figure.

MCHP Shares Are Trading at a PremiumMicrochip shares are trading at a premium as suggested by a Value Score of D.

In terms of the forward 12-month price-to-sales (P/S), the company is trading at 7.2X, a premium compared with the broader sector’s and On Semiconductor’s 6.85X and 5.3X, respectively. However, MCHP is trading at a discount compared with Texas Instruments’ and Analog Devices’ P/S multiple of 12.54X and 11.99X, respectively.

MCHP Stock’s Valuation
Image Source: Zacks Investment Research

ConclusionMicrochip has emerged from one of the industry’s toughest downturns with improving execution, strengthening demand and expanding exposure to attractive long-term growth markets. Inventory normalization, broad-based recovery across industrial and automotive markets, growing AI and data center opportunities, and improving profitability provide a solid foundation for sustained growth. While supply chain constraints, cost inflation, and intense competition remain risks, MCHP’s strengthening bookings, healthy earnings outlook and disciplined turnaround strategy position it well for continued momentum. Despite its premium valuation, Microchip’s improving fundamentals and expanding AI infrastructure portfolio make the stock an attractive choice for investors with a long-term investment horizon.

Microchip currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.