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The European Commission on Monday said ChatGPT, Reddit and Roblox will need ​to adhere to the EU regulations ‌for very large online platforms and search engines.

The services have declared that they reach at least ​45 million monthly users in the ​EU.

This qualifies them for the "very large" designation ⁠under the bloc's Digital Services Act, ​the Commission said.

ChatGPT, Reddit and Roblox have four ​months to comply with additional obligations following their designation.

This includes assessing and mitigating risks of illegal content ​being disseminated through their platforms.

They also ​need to mitigate the negative effects on minors, and ‌on ⁠the physical and mental wellbeing of users.

Very large platforms and search engines also need to limit risks for fundamental rights, electoral ​processes and public ​security.

The ⁠Commission can supervise compliance with the DSA and will get investigative ​powers to assess functionalities behind the ​services.

AI-system ⁠ChatGPT qualifies as an online search engine under the DSA.

Gaming platform Roblox and discussion-based ⁠platform Reddit ​qualify as online platforms, ​as they enable users to disseminate third-party content to ​the public.

It has been about a month since the last earnings report for NXP Semiconductors (NXPI - Free Report) . Shares have lost about 7.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for NXP Semiconductors N.V. before we dive into how investors and analysts have reacted as of late.

NXP Semiconductors Q2 Earnings Beat Estimates, Revenues Rise Y/YNXP Semiconductors N.V. reported better-than-expected second-quarter 2026 results, driven by broad-based strength across its end markets, accelerating adoption of software-defined vehicles, industrial processing solutions and growing demand from AI data center infrastructure.

The company’s second-quarter non-GAAP earnings of $3.61 per share increased 32.7% year over year and surpassed the Zacks Consensus Estimate of $3.54 by 1.98%.

Revenues increased 19.5% year over year to $3.50 billion, topping the consensus estimate by 0.8%.

NXPI's End Markets Deliver Broad-Based GrowthAutomotive remained NXPI's largest business, generating $1.94 billion in revenues, up 12% year over year. Growth was fueled by continued momentum in software-defined vehicles, electrification and connectivity, with accelerating design wins for the S32 processor family and next-generation Ethernet switches.

Industrial & IoT revenues rose 38% year over year to $755 million, benefiting from strong adoption of i.MX, RT and MCX processing platforms across factory automation and industrial applications.

Communication Infrastructure & Other revenues climbed 41% year over year to $452 million, supported by increasing data center networking demand and continued ramp-ups of UCODE RFID products.

Mobile revenues totaled $351 million, up 6% year over year, reflecting stable demand for secure mobile transaction solutions despite normal seasonal trends.

NXPI’s AI, Data Center Businesses Gain MomentumManagement highlighted AI as an increasingly important long-term growth driver, noting that AI workloads are moving beyond cloud infrastructure into vehicles, factories and robotics markets where NXP already maintains leadership positions.

The company reiterated that its 2026 data center revenues are expected to exceed $500 million compared with roughly $200 million in 2025. Growth is being driven by demand for control-plane processors, networking, rack management, cooling, power management and security applications used in hyperscale AI infrastructure.

NXPI’s Profitability ImprovesNon-GAAP gross profit increased to $2.03 billion, while non-GAAP gross margin expanded 150 basis points year over year to 58.0%. Non-GAAP operating income rose 31% year over year to $1.23 billion, with operating margin improving 310 basis points to 35.1%, reflecting favorable product mix and higher operating leverage.

NXPI’s Strong Cash Generation Supports Shareholder ReturnsNXP generated $860 million in operating cash flow during the quarter. Net capital expenditures totaled $69 million, resulting in non-GAAP free cash flow of $791 million, representing 22.6% of revenues.

The company returned $360 million to shareholders during the quarter through $256 million in dividends and $104 million in share repurchases. Following quarter-end, NXP repurchased an additional $32 million of shares under its 10b5-1 program. The company also repaid $750 million of senior unsecured notes using available cash.

NXPI Guides Strong Third QuarterFor the third quarter of 2026, NXP expects revenues between $3.65 billion and $3.85 billion. At the midpoint, revenues of $3.75 billion imply 7% sequential growth and 18% year-over-year growth.

The company projects non-GAAP gross margin of 58.5% at the midpoint, and non-GAAP earnings per share of $4.11, indicating continued operating leverage as demand strengthens across its key markets.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, NXP has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, NXP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerNXP belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, MaxLinear (MXL - Free Report) , has gained 10% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

MaxLinear reported revenues of $168.85 million in the last reported quarter, representing a year-over-year change of +55.2%. EPS of $0.35 for the same period compares with $0.02 a year ago.

MaxLinear is expected to post earnings of $0.56 per share for the current quarter, representing a year-over-year change of +300%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for MaxLinear. Also, the stock has a VGM Score of C.

It has been about a month since the last earnings report for V.F. (VFC - Free Report) . Shares have lost about 8.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is V.F. due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for V.F. Corporation before we dive into how investors and analysts have reacted as of late.

V.F. Corp. Q1 Earnings Miss Estimates as Vans Wholesale WeighsV.F. Corporation posted first-quarter fiscal 2027 results, wherein the top and bottom lines missed the Zacks Consensus Estimate and declined year over year.

The company reported an adjusted loss of 27 cents per share for first-quarter fiscal 2027, wider than the year-ago loss of 25 cents. The figure also lagged the Zacks Consensus Estimate of a 22-cent loss.

Revenues declined 5.2% year over year to $1.669 billion and missed the consensus mark of $1.674 billion. Excluding Dickies, revenues rose 1% on a reported basis, supported by growth at The North Face, Timberland and Altra.

V.F. Corp.’s Q1 Revenue DetailsOn a regional basis, revenues in the Americas declined 4% year over year on a reported basis. EMEA revenues fell 7% as reported and 9% in constant currency. APAC revenues decreased 3% on a reported basis and 6% in constant currency. Overall, international revenues declined 4% year over year as reported and 7% in constant currency.

By channel, wholesale revenues fell 10% on a reported basis. Direct-to-consumer revenues were up 2% year over year on a reported basis and 1% on a constant-currency basis.

Revenues in the Outdoor segment improved 5% year over year on a reported basis (up 4% on a constant-currency basis) to $857 million. In the Active segment, revenues of $667 million declined 5% year over year on a reported basis and 6% on a constant-currency basis. Revenues in the All Other segment fell 42% year over year on a reported basis (down 42% on a constant-currency basis) to $145 million.

VF Corp.’s Gross Margin ExpandsThe company’s reported gross margin increased 100 basis points year over year to 54.9%. Adjusted gross margin excluding Dickies improved 10 basis points to 54.9%, indicating modest underlying progress after removing the divested brand’s prior-year contribution.

Reported selling, general and administrative expenses were $1 billion, representing 59.9% of revenues. Adjusted expenses were $1.012 billion, or 60.6% of revenues.

Financial Details of VFCV.F. Corp. ended the fiscal first quarter with cash and cash equivalents of $670 million, long-term debt of $3 billion and shareholders’ equity of $1.76 billion. Net debt was down $1.1 billion from the year-ago period.

What to Expect From VFC in FY27?VFC raised its fiscal 2027 revenue outlook to growth of 2% or better in constant currency from the prior guidance of 1-2%. The projection reflects expected growth at The North Face, Timberland and Altra, partly offset by a mid-single-digit decline at Vans, with Vans’ second-half revenues expected to improve to a decline of 2% or better year over year.

The company maintained its adjusted operating margin forecast of approximately 8%, supported by a higher adjusted gross margin and a lower adjusted SG&A rate. Free cash flow is still expected to be flat to higher than fiscal 2026’s $405 million, aided by year-over-year growth in operating cash flow. VFC anticipates ending fiscal 2027 with a leverage ratio of roughly 2.6x to 2.9x.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -6.54% due to these changes.

VGM ScoresAt this time, V.F. has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, V.F. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

It has been about a month since the last earnings report for S&P Global (SPGI - Free Report) . Shares have added about 4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is S&P Global due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for S&P Global Inc. before we dive into how investors and analysts have reacted as of late.

S&P Global Beats on Q2 EarningsS&P Global reported impressive -quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.

The company's second-quarter 2026 adjusted earnings were $4.83 per share, rising 23% year over year and beating the Zacks Consensus Estimate of $4.49 by 7.6%. Pro-forma revenues of $3.68 billion increased 11% and surpassed the consensus mark of $3.64 billion by 0.8%.

The performance was led by record results in Ratings and Indices. Global rated issuance strengthened sharply, with volumes rising 26% in the United States, 12% in Europe and 49% in Asia.

SPGI's Ratings Business Sets the PaceRatings revenues increased 17% year over year to $1.34 billion. Transaction revenues climbed 25% to $746 million, driven by higher debt-rating activity, while non-transaction revenues rose 8% to $593 million.

Adjusted operating profit advanced 22% to $917 million. The adjusted operating margin expanded 310 basis points to 68.5%, as revenue growth outpaced a 6% increase in adjusted expenses. Higher compensation and continued investments in strategic initiatives contributed to the expense increase.

S&P Global's Indices Extend Strong GrowthIndices revenues jumped 20% year over year to $534 million. Growth reflected higher asset-linked fees, supported by increased assets under management and strong trading volumes in exchange-traded derivatives.

Asset-linked fees rose 22% to $348 million, while sales usage-based royalties also increased 22% to $99 million. Adjusted operating profit grew 21% to $382 million, and the adjusted operating margin improved 90 basis points to 71.5%.

Recurring revenues represented 81.5% of segment revenues compared with 81.9% a year earlier. Adjusted expenses increased 16% due primarily to strategic growth investments and higher compensation costs.

SPGI's Energy Growth Remains MeasuredAdjusted Energy revenues were $623 million, up 3% year over year. Mid-single-digit growth in Platts, supported by demand for price assessments, was partly offset by muted Global Trading Services volumes and comparatively slower growth in CERA.

Recurring revenues accounted for 91.2% of the division’s total, increasing 90 basis points from the prior-year quarter. Adjusted operating profit rose 4% to $296 million, while the adjusted operating margin expanded 70 basis points to 47.5%.

Adjusted expenses increased 1%. Higher compensation and investments in growth initiatives were partly offset by productivity measures, helping profit growth remain ahead of the segment’s top-line increase.

S&P Global's Market Intelligence Margin RisesAdjusted Market Intelligence revenues increased 6% to $1.24 billion. High-single-digit growth in Kensho Data & Platforms, including contributions from With Intelligence, supported the results. Enterprise Solutions delivered low-single-digit growth, including the impacts of the Enterprise Data Management and thinkFolio divestitures.

Recurring revenues represented 97% of the segment’s total, up 20 basis points. Adjusted operating profit climbed 10% to $445 million, and the adjusted operating margin expanded 120 basis points to 36%.

Adjusted expenses increased 4%, reflecting With Intelligence costs and higher compensation. The divestitures and productivity savings partly offset those pressures.

SPGI's Profitability & Cash Flow StrengthenPro-forma non-GAAP adjusted operating profit increased 15% year over year to $2 billion. Adjusted expenses rose 6% to $1.68 billion, allowing the adjusted operating margin to expand 200 basis points to 54.3%.

Adjusted net income increased 19% to $1.43 billion. The adjusted effective tax rate declined to 19.8% from 23.3%, while a 3% reduction in diluted shares outstanding also supported per-share growth. Currency added 3 cents to adjusted earnings.

Cash provided by operating activities was $1.44 billion. The adjusted free cash flow, excluding certain items, totaled $1.37 billion, up 1%. The company paid out $287 million in dividends during the quarter.

S&P Global's Capital Returns Remain ActiveSPGI repurchased $500 million in shares in the second quarter, bringing year-to-date repurchases to $1.5 billion. Management expects total 2026 share repurchases to exceed $7 billion following the Mobility separation.

Cash, cash equivalents and restricted cash stood at $4.14 billion at the quarter-end. Short- and long-term debt, excluding $2 billion in bonds transferred to Mobility Global, was $13.17 billion. Adjusted net debt was 1.9 times adjusted EBITDA.

SPGI's Outlook Reflects Post-Spin Business MixS&P Global expects 2026 year-over-year reported revenue growth of 5.9-7.9% excluding Mobility, while the preceding quarter’s Mobility-included figure was 6.3-8.3%. Organic constant-currency revenue growth is projected at 6-8%, with adjusted operating margin expansion of 35-60 basis points (bps) while the first quarter 2026 (Mobility included) view was 10-35 bps.

Adjusted diluted earnings are expected to be between $17.5 and $17.75, while the preceding quarter’s (Mobility included) view was $19.4-$19.65. The company projects adjusted corporate unallocated expenses are expected to be $185-$195 million. The preceding quarter’s (Mobility included) view was $220-$230 million.

Management reduced net interest expense expectations to $390-$410 million from the $405-$415 million (Mobility included) reported in the preceding quarter. Capital expenditure of $190-$210 million is lowered from the preceding quarter’s (Mobility included) $215-$225 million.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -6.25% due to these changes.

VGM ScoresAt this time, S&P Global has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise S&P Global has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerS&P Global is part of the Zacks Securities and Exchanges industry. Over the past month, Nasdaq (NDAQ - Free Report) , a stock from the same industry, has gained 4.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Nasdaq reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.07 for the same period compares with $0.85 a year ago.

For the current quarter, Nasdaq is expected to post earnings of $1.02 per share, indicating a change of +15.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.

Nasdaq has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

Beacon Pointe Advisors LLC acquired a new position in shares of S&P Global Inc. (NYSE:SPGI – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 23,340 shares of the business services provider’s stock, valued at approximately $9,505,000.

Several other large investors have also recently bought and sold shares of the business. Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in shares of S&P Global during the 2nd quarter worth $834,000. Rakuten Investment Management Inc. acquired a new position in shares of S&P Global during the 2nd quarter worth $20,260,000. Glenview Trust Co purchased a new position in shares of S&P Global in the 2nd quarter valued at about $5,721,000. North Star Asset Management Inc. purchased a new position in shares of S&P Global in the 2nd quarter valued at about $6,790,000. Finally, Empowered Funds LLC acquired a new stake in shares of S&P Global in the second quarter valued at about $13,927,000. Hedge funds and other institutional investors own 87.17% of the company’s stock.

Analyst Ratings Changes Several research analysts have weighed in on the stock. Bank of America lowered their target price on shares of S&P Global from $575.00 to $550.00 and set a “buy” rating on the stock in a research report on Friday, July 10th. Wall Street Zen upgraded shares of S&P Global to a “hold” rating in a research report on Saturday, July 4th. Morgan Stanley decreased their price target on S&P Global from $557.00 to $525.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. JPMorgan Chase & Co. lowered their price target on S&P Global from $555.00 to $530.00 and set an “overweight” rating on the stock in a report on Wednesday, July 29th. Finally, Barclays dropped their price objective on S&P Global from $555.00 to $553.00 and set an “overweight” rating for the company in a research note on Wednesday, July 29th. Eighteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $523.59.

Read Our Latest Stock Report on S&P Global S&P Global Stock Up 1.7% Shares of S&P Global stock opened at $442.62 on Friday. S&P Global Inc. has a twelve month low of $381.61 and a twelve month high of $552.25. The stock has a market cap of $130.48 billion, a price-to-earnings ratio of 27.02, a price-to-earnings-growth ratio of 1.96 and a beta of 1.07. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.40. The company has a fifty day moving average price of $424.57 and a 200 day moving average price of $424.29.

S&P Global (NYSE:SPGI – Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The business services provider reported $4.83 EPS for the quarter, beating the consensus estimate of $4.81 by $0.02. S&P Global had a return on equity of 17.74% and a net margin of 31.37%.The company had revenue of $4.15 billion for the quarter, compared to analyst estimates of $4.09 billion. During the same period last year, the company posted $4.43 earnings per share. The firm’s revenue was up 10.4% compared to the same quarter last year. S&P Global has set its FY 2026 guidance at 17.500-17.750 EPS. Equities research analysts forecast that S&P Global Inc. will post 17.75 earnings per share for the current fiscal year.

S&P Global Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Wednesday, August 26th will be given a dividend of $0.97 per share. The ex-dividend date of this dividend is Wednesday, August 26th. This represents a $3.88 annualized dividend and a yield of 0.9%. S&P Global’s payout ratio is 23.69%.

S&P Global Company Profile (Free Report)

S&P Global is a leading provider of financial information, analytics and benchmark indices that serve investors, issuers, corporations and public institutions worldwide. The company operates through well-known businesses that include credit ratings, market intelligence and index licensing, as well as commodity and energy information services. Its products and services are used to assess creditworthiness, inform investment decisions, construct and track benchmark portfolios, and support risk and commodity market analysis.

S&P Global Ratings provides independent credit ratings, research and data used by fixed income investors and capital market participants to evaluate issuer and transaction risk.

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Beacon Pointe Advisors LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 74,583 shares of the business services provider’s stock, valued at approximately $16,703,000.

A number of other hedge funds have also bought and sold shares of the company. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing in the 4th quarter valued at approximately $26,000. Bard Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 4th quarter valued at approximately $28,000. Whipplewood Advisors LLC raised its position in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in Automatic Data Processing during the fourth quarter worth $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance ADP opened at $287.48 on Friday. The business has a 50 day moving average price of $256.03 and a two-hundred day moving average price of $227.97. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $114.20 billion, a price-to-earnings ratio of 26.28 and a beta of 0.81. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $305.31.

Automatic Data Processing (NASDAQ:ADP – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analysts’ expectations of $5.44 billion. During the same period last year, the firm earned $2.26 EPS. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year. Automatic Data Processing Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing’s payout ratio is presently 62.16%.

Wall Street Analyst Weigh In A number of equities analysts have commented on the stock. Cantor Fitzgerald lifted their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. Wells Fargo & Company increased their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Morgan Stanley raised their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Guggenheim boosted their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Finally, UBS Group increased their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $273.50.

View Our Latest Stock Report on Automatic Data Processing

Insider Transactions at Automatic Data Processing In other news, VP Brian L. Michaud sold 120 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 3,332 shares of company stock worth $898,211. 0.20% of the stock is owned by corporate insiders.

(Free Report)

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

Read More Five stocks we like better than Automatic Data Processing 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding ADP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report).

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SHANGHAI, Aug. 27, 2026 (GLOBE NEWSWIRE) -- FinVolution Group (“FinVolution” or the “Company”) (NYSE: FINV), a leading fintech platform across China and overseas markets, today announced its unaudited financial results for the second quarter ended June 30, 2026.

 For the Three Months Ended/As ofYoY
Change
 June 30, 2025June 30, 2026Total Transaction Volume (RMB in billions)1 54.044.8-17.0%- Chinese Mainland250.841.0-19.3%- Overseas Markets33.23.818.8%    Total Outstanding Loan Balance (RMB in billions)77.567.9-12.4%- Chinese Mainland475.465.4-13.3%- Overseas Markets52.12.519.0%     Second Quarter 2026 Highlights

Chinese Mainland Market

Cumulative registered users reached 192.8 million as of June 30, 2026, an increase of 6.6% compared with June 30, 2025.Cumulative borrowers reached 30.1 million as of June 30, 2026, an increase of 7.9% compared with June 30, 2025.Number of unique borrowers6 for the second quarter of 2026 was 1.8 million, a decrease of 18.2% compared with the same period of 2025.Transaction volume2 was RMB41.0 billion for the second quarter of 2026, a decrease of 19.3% compared with the same period of 2025.Transaction volume facilitated for repeat individual borrowers7 for the second quarter of 2026 was RMB34.8 billion, a decrease of 20.5% compared with the same period of 2025.Outstanding loan balance4 was RMB65.4 billion as of June 30, 2026, a decrease of 13.3% compared with June 30, 2025.Average loan size was RMB10,742 for the second quarter of 2026, compared with RMB10,056 for the same period of 2025.Average loan tenure was 8.5 months for the second quarter of 2026, compared with 8.3 months for the same period of 2025.90 day+ delinquency ratio8 was 2.10% as of June 30, 2026.Net revenue9 was RMB2,396.7 million (US$353.2 million) for the second quarter of 2026, compared with RMB2,781.3 million for the same period of 2025.U.S. GAAP operating profit10 was RMB624.8 million (US$92.1 million) for the second quarter of 2026, compared with RMB913.6 million for the same period of 2025.Non-GAAP adjusted EBITDA11, which excludes depreciation and amortization and share-based compensation expenses from operating profit, was RMB641.9 million (US$94.6 million) for the second quarter of 2026, compared with RMB930.6 million for the same period of 2025. Overseas Markets

Cumulative registered users reached 61.4 million as of June 30, 2026, an increase of 43.5% compared with June 30, 2025.Cumulative borrowers reached 15.6 million as of June 30, 2026, an increase of 79.3% compared with June 30, 2025.Number of unique borrowers12 for the second quarter of 2026 was 5.3 million, an increase of 130.4% compared with the same period of 2025.Number of new borrowers13 for the second quarter of 2026 was 2.2 million, an increase of 100.0% compared with the same period of 2025.Transaction volume3 reached RMB3.8 billion for the second quarter of 2026, an increase of 18.8% compared with the same period of 2025.Outstanding loan balance5 reached RMB2.5 billion as of June 30, 2026, an increase of 19.0% compared with June 30, 2025.Net revenue14 was RMB930.3 million (US$137.1 million) for the second quarter of 2026, an increase of 18.0% compared with the same period of 2025, representing 27.3% of total revenue for the second quarter of 2026.U.S. GAAP operating profit10 was RMB53.6 million (US$7.9 million) for the second quarter of 2026, compared with RMB25.6 million for the same period of 2025.Non-GAAP adjusted EBITDA11, which excludes depreciation and amortization and share-based compensation expenses from operating profit, was RMB55.3 million (US$8.1 million) for the second quarter of 2026, compared with RMB26.6 million for the same period of 2025.
Group Financial Highlights

Net revenue was RMB3,403.2 million (US$501.6 million) for the second quarter of 2026, compared with RMB3,578.0 million for the same period of 2025.Net profit was RMB426.8 million (US$62.9 million) for the second quarter of 2026, compared with RMB751.3 million for the same period of 2025.U.S. GAAP operating profit was RMB529.2 million (US$78.0 million) for the second quarter of 2026, compared with RMB815.5 million for the same period of 2025.Non-GAAP adjusted operating profit15, which excludes share-based compensation expenses before tax, was RMB572.1 million (US$84.3 million) for the second quarter of 2026, compared with RMB854.8 million for the same period of 2025.Diluted net profit per American depositary share (“ADS”) was RMB1.80 (US$0.26) and diluted net profit per share was RMB0.36 (US$0.05) for the second quarter of 2026, compared with RMB2.82 and RMB0.56 for the same period of 2025, respectively.Non-GAAP diluted net profit per ADS was RMB1.97 (US$0.29) and non-GAAP diluted net profit per share was RMB0.39 (US$0.06) for the second quarter of 2026, compared with RMB2.97 and RMB0.59 for the same period of 2025, respectively. Each ADS of the Company represents five Class A ordinary shares of the Company. _________________________
1 Represents the total transaction volume facilitated in the Chinese Mainland and overseas markets on the Company’s platform during the period presented.
2 Represents our transaction volume facilitated in the Chinese Mainland during the period presented. During the second quarter, RMB14.4 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.
3 Represents our transaction volume facilitated in Indonesia, the Philippines and Australia during the period presented.
4 Outstanding loan balance as of any date refers to the balance of outstanding loans in the Chinese Mainland market excluding loans delinquent for more than 180 days from such date. As of June 30, 2026, RMB33.4 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.
5 Outstanding loan balance as of any date refers to the balance of outstanding loans in Indonesia, the Philippines and Australia excluding loans delinquent for more than 30 days from such date.
6 Represents the total number of borrowers in the Chinese Mainland who successfully borrowed on the Company’s platform during the period presented.
7 Represents the transaction volume facilitated for borrowers who had historically completed a transaction on the Company’s platform in the Chinese Mainland during the period presented.
8 “90 day+ delinquency ratio” refers to the outstanding principal balance of loans, excluding loans facilitated under the capital-light model, that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of loans, excluding loans facilitated under the capital-light model on the Company’s platform as of a specific date. Loans that originated outside the Chinese Mainland are not included in the calculation.
9 Represents revenue from the Chinese Mainland. Prior period segment results from the Chinese Mainland have been recast to conform to the current period presentation. Please refer to the “Selected Segment Information” tables at the end of this release for a breakdown by segment for the periods presented.
10 Please refer to the “Selected Segment Information” tables at the end of this release for reconciliation between Operating Segment Profit/(Loss) and GAAP operating profit.
11 Please refer to the “Selected Segment Information” tables at the end of this release for reconciliation between GAAP operating profit and Non-GAAP adjusted EBITDA.
12 Represents the total number of borrowers in Indonesia, the Philippines and Australia who successfully borrowed on the Company’s platforms during the period presented.
13 Represents the total number of new borrowers in Indonesia, the Philippines and Australia whose transactions were facilitated on the Company’s platforms during the period presented.
14 Represents revenue from overseas markets outside the Chinese Mainland, namely Indonesia, the Philippines, and Australia. Prior period segment results from overseas markets have been recast to conform to the current period presentation. Please refer to “Selected Segment Information” for a breakdown by segment for the periods presented.
15 Please refer to “UNAUDITED Reconciliation of GAAP and Non-GAAP Results” for reconciliation between GAAP and Non-GAAP adjusted operating profit.
16 The Company has reclassified certain items within its consolidated balance sheets for the first quarter of 2026, including amounts between Loans receivable and Accounts receivable. These balance sheet reclassifications also resulted in corresponding changes in the presentation of certain items in the consolidated statements of cash flows under the indirect method. The impact of these reclassifications has been reflected in the consolidated statements of cash flows for the six months ended June 30, 2026.

Mr. Tiezheng Li, Vice Chairman and Chief Executive Officer of FinVolution, commented, "Our second quarter results reflect a growing recovery following the risk mitigation actions we took in the second half of last year, with transaction volume, net revenue, and net profit all up sequentially. Both our Chinese Mainland and Overseas segments delivered resilient performances against an evolving regulatory and macro backdrop across several of our markets, reinforcing the value of our two-engine model.

"Asset quality in the Chinese Mainland segment remained solid, supported by the healthier borrower mix we captured during this year's industry consolidation. Meanwhile, the Overseas segment continued to gain traction under our 'Local Excellence, Global Outlook+' strategy. Our unique borrower base more than doubled to 5.3 million, driving continued overall profitability across our international footprint, underscoring the growing earnings power of our diversified platform.

"As we enter the third quarter, we are navigating industry headwinds as institutional funding in China tightens at the moment coupled with an evolving risk environment. We intend to stay disciplined on origination rather than chase high-risk volume. Our dual-engine profitability, technology edge and healthy, low-leverage balance sheet give us the flexibility to manage this period while continuing to build long-term value for customers and shareholders," concluded Mr. Li.

Mr. Jiayuan Xu, Chief Financial Officer of FinVolution, continued, "Total net revenues were RMB3.4 billion for the second quarter, up 6% sequentially, and net profit was RMB426.8 million, up 1% sequentially. The Chinese Mainland segment contributed RMB2.4 billion in revenue, up 8% sequentially. Overseas segment revenue was RMB930.3 million, up 18% year over year. Overseas operating profit more than doubled to RMB53.6 million, demonstrating sustained profitability across our international footprint.

“Our balance sheet remains robust, with RMB6.4 billion in cash and short-term investments, while our leverage ratio stands at 2.1x, around historic lows. We repurchased US$27.4 million in shares during the quarter, bringing our first-half 2026 total to US$66.8 million. Despite anticipated industry headwinds in the third quarter, we are maintaining our full-year revenue outlook of RMB11.5 billion to RMB12.9 billion. We remain committed to disciplined execution and to delivering sustainable, long-term value for our shareholders," concluded Mr. Xu.

Second Quarter 2026 Financial Results

Net revenue for the second quarter of 2026 was RMB3,403.2 million (US$501.6 million), compared with RMB3,578.0 million for the same period of 2025. This decrease was primarily due to decreases in loan facilitation service fees, post-facilitation service fees and guarantee income, partially offset by increases in net interest income.

Loan facilitation service fees were RMB1,313.8 million (US$193.6 million) for the second quarter of 2026, compared with RMB1,515.3 million for the same period of 2025. The decrease was primarily due to decreases in transaction volume in the Chinese Mainland market, partially offset by the increase in transaction volume in overseas markets.

Post-facilitation service fees were RMB386.0 million (US$56.9 million) for the second quarter of 2026, compared with RMB425.6 million for the same period of 2025. This decrease was primarily due to the rolling impact of deferred transaction fees.

Guarantee income was RMB904.5 million (US$133.3 million) for the second quarter of 2026, compared with RMB1,046.6 million for the same period of 2025. This decrease was primarily due to the decrease in risk-bearing loans in the Chinese Mainland market, as well as the rolling impact of deferred guarantee income. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment.

Net interest income was RMB474.3 million (US$69.9 million) for the second quarter of 2026, compared with RMB272.1 million for the same period of 2025. This increase mainly resulted from the increase in the average outstanding loan balances of on-balance sheet loans in both the Chinese Mainland and overseas markets, partially offset by the decrease in interest yield in the Chinese Mainland market.

Other revenue was RMB324.6 million (US$47.8 million) for the second quarter of 2026, compared with RMB318.3 million for the same period of 2025. This increase was primarily due to the increase in the contributions from other revenue streams, including other value-added services.

Origination, servicing expenses and other costs of revenue were RMB732.9 million (US$108.0 million) for the second quarter of 2026, compared with RMB674.5 million for the same period of 2025. This increase was primarily driven by the increase in employee expenditures in both the Chinese Mainland and overseas markets, partially offset by the decrease in loan collection expenses in the Chinese Mainland market.

Sales and marketing expenses were RMB480.9 million (US$70.9 million) for the second quarter of 2026, compared with RMB606.4 million for the same period of 2025. This decrease was primarily due to improved efficiency and decreased investment in marketing activities in the Chinese Mainland market.

Research and development expenses were RMB118.9 million (US$17.5 million) for the second quarter of 2026, compared with RMB129.0 million for the same period of 2025. This decrease was primarily due to efficiency improvements in technology development.

General and administrative expenses were RMB106.3 million (US$15.7 million) for the second quarter of 2026, compared with RMB110.2 million for the same period of 2025. This decrease was primarily due to a decrease in professional services fees.

Provision for accounts receivable and contract assets was RMB97.9 million (US$14.4 million) for the second quarter of 2026, compared with RMB106.3 million for the same period of 2025. The decrease was primarily due to decreased transaction volume of off-balance sheet loans in the Chinese Mainland.

Provision for loans receivable was RMB164.4 million (US$24.2 million) for the second quarter of 2026, compared with RMB98.4 million for the same period of 2025. This increase was primarily due to the increase in the outstanding loan balance of on-balance sheet loans in the Chinese Mainland and overseas markets.

Credit losses for quality assurance commitment were RMB1,108.8 million (US$163.4 million) for the second quarter of 2026, compared with RMB987.1 million for the same period of 2025. The increase was primarily due to the increase in risk-bearing loans in the overseas markets.

Impairment of goodwill and intangible assets was RMB63.8 million (US$9.4 million) for the second quarter of 2026, compared with RMB50.4 million for the same period of 2025. The impairment of intangible assets in 2026 was primarily due to an impairment of micro-lending licenses related to a certain micro-lending company acquired by the Group in 2017, following a performance review during the quarter.

Operating profit was RMB529.2 million (US$78.0 million) for the second quarter of 2026, compared with RMB815.5 million for the same period of 2025.

Non-GAAP adjusted operating profit, which excludes share-based compensation expenses before tax, was RMB572.1 million (US$84.3 million) for the second quarter of 2026, compared with RMB854.8 million for the same period of 2025.

Other income was RMB33.9 million (US$5.0 million) for the second quarter of 2026, compared with RMB115.9 million for the same period of 2025. The decrease was mainly due to an increase in foreign exchange losses and a decrease in government subsidies.

Income tax expense was RMB116.4 million (US$17.1 million) for the second quarter of 2026, compared with RMB178.7 million for the same period of 2025. This decrease was mainly due to the decrease in pre-tax profit.

Net profit was RMB426.8 million (US$62.9 million) for the second quarter of 2026, compared with RMB751.3 million for the same period of 2025.

Net profit attributable to ordinary shareholders of the Company was RMB441.6 million (US$65.1 million) for the second quarter of 2026, compared with RMB747.0 million for the same period of 2025.

Diluted net profit per ADS was RMB1.80 (US$0.26) and diluted net profit per share was RMB0.36 (US$0.05) for the second quarter of 2026, compared with RMB2.82 and RMB0.56 for the same period of 2025, respectively.

Non-GAAP diluted net profit per ADS was RMB1.97 (US$0.29) and non-GAAP diluted net profit per share was RMB0.39 (US$0.06) for the second quarter of 2026, compared with RMB2.97 and RMB0.59 for the same period of 2025, respectively. Each ADS represents five Class A ordinary shares of the Company.

As of June 30, 2026, the Company had cash and cash equivalents of RMB3,259.4 million (US$480.4 million) and short-term investments, mainly in wealth management products and term deposits, of RMB3,162.0 million (US$466.0 million).

The following chart shows the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for loan products facilitated through the Company’s platform in the Chinese Mainland as of June 30, 2026. Loans facilitated under the capital-light model, for which the Company does not bear principal risk, are excluded from the chart.

Shares Repurchase Update

For the second quarter of 2026, the Company deployed approximately US$27.4 million to repurchase its own Class A ordinary shares in the form of ADSs. As of June 30, 2026, in combination with the Company’s historical and existing share repurchase programs, the Company had cumulatively repurchased its own Class A ordinary shares in the form of ADSs with a total aggregate value of approximately US$544.1 million since 2018.

Business Outlook

Looking ahead to the third quarter, we anticipate a considerable contraction in transaction volume in China, reflecting industry headwinds as institutional funding to the industry tightens at the moment. Despite this near-term impact, underpinned by the strength of our two-engine model and disciplined execution, we reiterate the Company’s full-year 2026 total revenue guidance to be in the range of approximately RMB11.5 billion to RMB12.9 billion.

The above forecast is based on the current market conditions and reflects the Company’s current preliminary views and expectations on market and operational conditions and the regulatory and operating environment, as well as customers’ and institutional partners’ demands, all of which are subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:30 PM U.S. Eastern Time on August 27, 2026 (8:30 AM Beijing/Hong Kong Time on August 28, 2026).

Participants should complete online registration using the link provided below at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Participant Online Registration:
https://register-conf.media-server.com/register/BI0f0012327500446398832920fa161c5b

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.finvgroup.com.

About FinVolution Group

FinVolution Group is a leading fintech platform with strong brand recognition across China and overseas markets, connecting borrowers of the young generation with financial institutions. Established in 2007, the Company is a pioneer in China's online consumer finance industry and has developed innovative technologies and accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company's platform, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of June 30, 2026, the Company had 254.2 million cumulative registered users across China and overseas markets.

For more information, please visit https://ir.finvgroup.com

Use of Non-GAAP Financial Measures

We use non-GAAP adjusted operating profit, non-GAAP operating margin, non-GAAP adjusted EBITDA, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. We believe that these non-GAAP financial measures help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP adjusted operating profit, non-GAAP operating margin, non-GAAP adjusted EBITDA, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider it in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on this non-GAAP financial measure, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the rate in effect as of June 30, 2026 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company’s marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
FinVolution Group
Head of Capital Markets
Yam Cheng
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: [email protected]

In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data, or otherwise noted)

 As of December 31, As of June 30, 2025
 2026
 RMB RMBUSDAssets    Cash and cash equivalents4,285,121 3,259,378480,373Restricted cash1,912,850 1,631,542240,460Short-term investments3,015,226 3,161,992466,020Investments1,141,816 1,164,822171,674Quality assurance receivable, net of credit loss allowance for quality assurance receivable of RMB581,475 and RMB666,160 as of December 31, 2025 and June 30, 2026, respectively1,315,184 1,421,677209,529Intangible assets270,246 206,48330,432Property, equipment and software, net641,316 620,70091,480Loans receivable, net of credit loss allowance for loans receivable of RMB544,905 and RMB416,552 as of December 31, 2025 and June 30, 2026, respectively6,471,619 6,597,360

972,331

Accounts receivable and contract assets, net of credit loss allowance for accounts receivable and contract assets of RMB340,816 and RMB286,557 as of December 31, 2025 and June 30, 2026, respectively2,028,585 2,895,985426,815Deferred tax assets2,992,071 3,504,367516,480Right of use assets52,020 45,0006,632Prepaid expenses and other assets1,207,791 1,484,090218,728Goodwill79,759 79,75911,755Total assets25,413,604 26,073,1553,842,709Deferred guarantee income1,119,004 1,256,324185,159Liability from quality assurance commitment2,574,842 2,684,907395,706Payroll and welfare payable361,188 244,07735,972Taxes payable177,064 477,07370,312Short-term borrowings170,408 387,45657,104Funds payable to investors of consolidated trusts778,531 739,575109,000Contract liability226 --Deferred tax liabilities786,556 736,814108,593Accrued expenses and other liabilities1,448,231 1,619,544238,692Leasing liabilities44,711 40,0615,904Convertible senior notes1,019,266 991,199146,085Long-term borrowings89,590 155,78922,960Total liabilities8,569,617 9,332,8191,375,487Commitments and contingencies    FinVolution Group Shareholders’ equity    Ordinary shares103 10315Additional paid-in capital5,908,586 5,986,830882,350Treasury stock(2,465,259) (2,831,861)(417,365)Statutory reserves1,042,312 1,042,312153,618Accumulated other comprehensive income13,027 32,8704,846Retained Earnings12,051,332 12,401,2371,827,716Total FinVolution Group shareholders’ equity16,550,101 16,631,4912,451,180Non-controlling interest293,886 108,84516,042Total shareholders' equity16,843,987 16,740,3362,467,222Total liabilities and shareholders’ equity25,413,604 26,073,1553,842,709 FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share data, or otherwise noted)

 For the Three Months Ended June 30,
 For the Six Months Ended June 30, 2025
 2026
 2025
 2026
 RMB RMBUSD RMB RMBUSD       Operating revenue:      Loan facilitation service fees1,515,349 1,313,757193,624 2,993,147 2,495,071 367,728Post-facilitation service fees425,595 385,99456,888 806,209 734,337 108,228Guarantee income1,046,615 904,520133,310 2,146,129 1,790,589 263,900Net interest income272,098 474,29669,903 513,712 958,977 141,336Other revenue318,294 324,60247,840 599,795 634,257 93,478Net revenue3,577,951 3,403,169501,565 7,058,992 6,613,231 974,670Operating expenses:      Origination, servicing expenses and other cost of revenue(674,544) (732,912)(108,018) (1,295,009) (1,478,084) (217,843)Sales and marketing expenses(606,444) (480,851)(70,869) (1,136,147) (973,298) (143,446)Research and development expenses(128,974) (118,934)(17,529) (255,015) (244,393) (36,019)General and administrative expenses(110,196) (106,349)(15,674) (217,090) (220,192) (32,452)Provision for accounts receivable and contract assets(106,345) (97,868)(14,424) (224,063) (209,382) (30,859)Provision for loans receivable(98,379) (164,435)(24,235) (183,793) (382,583) (56,386)Credit losses for quality assurance commitment(987,139) (1,108,811)(163,419) (1,998,754) (1,965,448) (289,671)Impairment of goodwill and intangible assets(50,411) (63,760)(9,397) (50,411) (63,760) (9,397)Total operating expenses(2,762,432) (2,873,920)(423,565) (5,360,282) (5,537,140) (816,073)Operating profit815,519 529,24978,000 1,698,710 1,076,091 158,597Interest expenses(1,444) (20,018)(2,950) (2,096) (37,165) (5,477)Other income, net115,908 33,9004,996 124,941 18,379 2,709Profit before income tax expense929,983 543,13180,046 1,821,555 1,057,305 155,829Income tax expenses(178,670) (116,361)(17,149) (332,601) (209,478) (30,873)Net profit 751,313 426,77062,897 1,488,954 847,827 124,956Less: Net profit/(loss) attributable to non-controlling interest shareholders4,316 (14,781)(2,178) (4,449) (8,786) (1,295)Net profit attributable to FinVolution Group746,997 441,55165,075 1,493,403 856,613 126,251Foreign currency translation adjustment, net of nil tax705 (5,213)(768) (15,568) 19,843 2,924Total comprehensive income attributable
to FinVolution Group747,702 436,33864,307 1,477,835 876,456 129,175Weighted average number of ordinary shares used in
computing net profit per share      Basic1,280,035,833 1,179,633,9661,179,633,966 1,272,937,319 1,186,923,976 1,186,923,976Diluted1,322,804,429 1,252,313,0201,252,313,020 1,319,415,709 1,268,035,160 1,268,035,160Net profit per share attributable to FinVolution
Group’s ordinary shareholders       Basic0.58 0.370.06 1.17 0.72 0.11Diluted0.56 0.360.05 1.13 0.69 0.10Net profit per ADS attributable to FinVolution
Group’s ordinary shareholders (one ADS equals
five ordinary shares)       Basic2.92 1.870.28 5.87 3.61 0.53Diluted2.82 1.800.26 5.66 3.44 0.51 FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except share data, or otherwise noted)

 Three Months Ended June 30, Six Months Ended June 30, 2025
 2026
 2025
 2026
 RMB RMB USD RMB RMB USDNet cash provided by/(used in) operating activities8,627 (389,983) (57,477) 530,962 (805,354) (118,695)Net cash (used in)/ provided by investing activities(1,025,083) (515,472) (75,971) (659,887) 271,911 40,075Net cash provided by/(used in) financing activities658,029 (708,061) (104,355) 459,698 (698,643) (102,967)Effect of exchange rate changes on cash and cash equivalents5,754 (46,217) (6,811) (5,511) (74,965) (11,048)Net increase in cash, cash equivalent and restricted cash(352,673) (1,659,733) (244,614) 325,262 (1,307,051) (192,635)Cash, cash equivalent and restricted cash at beginning of period7,425,007 6,550,653 965,447 6,747,072 6,197,971 913,468Cash, cash equivalent and restricted cash at end of period7,072,334 4,890,920 720,833 7,072,334 4,890,920 720,833 FinVolution Group
UNAUDITED Reconciliation of GAAP and Non-GAAP Results
 (All amounts in thousands, except share data, or otherwise noted) For the Three Months Ended June 30,
 For the Six Months Ended June 30, 2025 2026 2025 2026 RMB RMBUSD RMB RMBUSD       Net Revenues3,577,951 3,403,169501,565 7,058,992 6,613,231974,670Less: total operating expenses(2,762,432) (2,873,920)(423,565) (5,360,282) (5,537,140)(816,073)Operating Profit815,519 529,24978,000 1,698,710 1,076,091158,597Add: share-based compensation expenses39,318 42,8666,318 73,997 81,03911,944Non-GAAP adjusted operating profit854,837 572,11584,318 1,772,707 1,157,130170,541       Operating Margin22.8% 15.6%15.6% 24.1% 16.3%16.3%Non-GAAP operating margin23.9% 16.8%16.8% 25.1% 17.5%17.5%Non-GAAP adjusted operating profit854,837 572,11584,318 1,772,707 1,157,130170,541Less: interest expenses(1,444) (20,018)(2,950) (2,096) (37,165)(5,477)Add: other income, net115,908 33,9004,996 124,941 18,3792,709Less: income tax expenses(178,670) (116,361)(17,149) (332,601) (209,478)(30,873)Non-GAAP net profit790,631 469,63669,215 1,562,951 928,866136,900Less: Net profit/(loss) attributable to non-controlling interest shareholders4,316 (14,781)(2,178) (4,449) (8,786)(1,295)Non-GAAP net profit attributable to FinVolution Group786,316 484,41771,393 1,567,400 937,652138,195       Weighted average number of ordinary shares used in computing net income per share      Basic1,280,035,833 1,179,633,9661,179,633,966 1,272,937,319 1,186,923,9761,186,923,976Diluted1,322,804,429 1,252,313,0201,252,313,020 1,319,415,709 1,268,035,1601,268,035,160Non-GAAP net profit per share attributable to FinVolution Group’s ordinary shareholders      Basic0.61 0.410.06 1.23 0.790.12Diluted0.59 0.390.06 1.19 0.750.11Non-GAAP net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five ordinary shares)      Basic3.07 2.050.30 6.16 3.950.58Diluted2.97 1.970.29 5.94 3.760.54 FinVolution Group
Selected Segment Information
(All amounts in thousands, except share data, or otherwise noted)For the Three Months Ended June 30, 2026      Chinese Mainland Overseas Markets(1)Others(2)EliminationTotal RMBRMBRMBRMBRMBNet Revenue2,396,725930,28381,676(5,515)3,403,169Less(3): Operating Expenses (4)(1,771,964)(876,648)(124,197)5,515(2,767,294)Operating Segment Profit/(Loss)624,76153,635(42,521)-635,875Less: Unallocated expenses(5)    (106,626)Operating profit    529,249 For the Three Months Ended June 30, 2025      Chinese Mainland Overseas Markets(1)Others(2)EliminationTotal RMBRMBRMBRMBRMBNet Revenue2,781,295788,68011,248(3,272)3,577,951Less(3): Operating Expenses (4)(1,867,744)(763,104)(45,127)3,272(2,672,703)Operating Segment Profit/(Loss)913,55125,576(33,879)-905,248Less: Unallocated expenses(5)    (89,729)Operating profit    815,519       Notes:
(1): “Overseas Markets” includes Indonesia, the Philippines and Australia.
(2): “Others” includes a combination of multiple business activities that each does not meet the quantitative thresholds to qualify as reportable segments.
(3): The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(4): “Operating Expenses” includes Origination, servicing expenses and other costs of revenue, Sales and marketing expenses, General and administrative expenses, Research and development expenses, Credit losses for quality assurance commitment, Provision for loans receivable and Provision for accounts receivable and contract assets.
(5): Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions, and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.

FinVolution Group
Selected Segment Information
(All amounts in thousands, except share data, or otherwise noted)For the Three Months Ended June 30, 2026      Chinese Mainland Overseas MarketsOthersUnallocated expensesTotal RMBRMBRMBRMBRMBOperating profit624,76153,635(42,521)(106,626)529,249Add: Depreciation and amortization17,1801,625267-19,072Add: Share-based compensation expenses---42,86642,866Non-GAAP Adjusted EBITDA641,94155,260(42,254)(63,760)591,187 For the Three Months Ended June 30, 2025      Chinese Mainland Overseas MarketsOthersUnallocated expensesTotal RMBRMBRMBRMBRMBOperating profit913,55125,576(33,879)(89,729)815,519Add: Depreciation and amortization17,0351,020125-18,180Add: Share-based compensation expenses---39,31839,318Non-GAAP Adjusted EBITDA930,58626,596(33,754)(50,411)873,017       Note:
“Non-GAAP Adjusted EBITDA” represents operating profit (loss) plus (a) depreciation and amortization expenses and (b) share-based compensation expenses.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cfab4379-0d6d-4261-a793-ffb1dbcfa6c2

Key Takeaways FCX's expansion projects aim to boost copper output, backed by strong financial health.BHP boosts copper output and invests billions in new projects like the Escondida concentrator.Copper prices remain favorable amid demand strength, supply concerns and global tensions. Freeport-McMoRan Inc. (FCX - Free Report) and BHP Group Limited (BHP - Free Report) are two heavyweights in the copper mining industry. Both are navigating fluctuating copper prices and global economic uncertainties.

Copper prices continue to show strength driven by robust demand from China and the United States. Structural tailwinds, including electric vehicles (EVs), renewable energy projects, artificial intelligence data center growth and grid modernization, continue to boost copper consumption. Worries about tightening supply amid rising EV and infrastructure demand aided the red metal.

Copper surged to an all-time high near $6.9 per pound earlier this month on supply tightness and demand strength. Supply risks stemming from operational issues in top producer Chile, along with export bans on copper concentrates from the Democratic Republic of Congo, supported the price rally. Imports to the United States have also surged ahead of a potential tariff announcement by the Trump administration. Copper prices are currently hovering near $6.6 per pound.

  Let’s dive deep and closely compare the fundamentals of these two copper giants to determine which one is a better investment option now.

The Case for FreeportFreeport continues to leverage its portfolio of high-quality copper assets, emphasizing disciplined execution and organic growth initiatives to strengthen its production profile. FCX has completed the evaluation of a large-scale expansion at El Abra in Chile to define a large sulfide resource that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde, with an estimated resource of approximately 20 billion recoverable pounds of copper. The expansion is expected to result in the addition of more than 700 million pounds of copper production annually.

In Arizona, FCX is progressing with pre-feasibility studies at its Safford/Lone Star operations, with completion targeted for 2026, to assess a sizable sulfide expansion opportunity. It has expansion opportunities at Bagdad in Arizona that can more than double the concentrator capacity of the operation. Technical and economic studies have revealed the potential to build concentrating facilities to boost copper production by 200-250 million pounds annually.

PT Freeport Indonesia (PT-FI) is developing the Kucing Liar ore body within the Grasberg district with a targeted ramp-up to commence in 2030. Studies completed by FCX in 2025 show an opportunity to increase Kucing Liar’s design capacity to 130,000 metric tons of ore per day and reserves by roughly 20% at low costs.

   FCX has a strong liquidity profile and generates substantial cash flows, providing ample flexibility to fund expansion projects, reduce debt and enhance shareholder returns. It generated solid operating cash flows of $5.6 billion in 2025. Cash flows provided by operations were around $2 billion in the second quarter of 2026. Freeport ended the second quarter with strong liquidity, including $4.1 billion in cash and cash equivalents, $3 billion in availability under the Freeport revolving credit facility, and $1.5 billion in availability under the PT-FI credit facility.

At the end of the second quarter, Freeport had a net debt of $2.1 billion, excluding PTFI’s new downstream processing facilities. Its net debt is below its targeted range of $3-$4 billion. Freeport has a policy of distributing 50% of the available cash to its shareholders and the balance to either reduce debt or invest in growth projects. FCX has no significant debt maturities until 2027.

FCX offers a dividend yield of roughly 0.4% at the current stock price. Its payout ratio is 13% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong financial health, the company's dividend is perceived to be safe and reliable.

Freeport faces headwinds from higher costs. Its second-quarter unit net cash costs jumped 74% year over year to $1.97 per pound due to lower copper volumes. Freeport expects unit net cash costs of $2 per pound for the third quarter, while projecting a full-year average of roughly $1.9 (compared with $1.65 in 2025). The projected third-quarter unit cost reflects a roughly 43% year-over-year increase. The uptick in costs reflects higher costs of energy and other consumables due to the Middle East conflict and persistent pressure on volumes. Higher costs are expected to weigh on the company's margins.

     Freeport’s copper sales volumes tumbled approximately 30% year over year in the second quarter to 710 million pounds. The downside primarily resulted from lower operating rates during the phased ramp-up of the Grasberg Block Cave mine in Indonesia following the mud rush incident in September 2025.

While the company’s third-quarter outlook for copper sales volumes of 750 million pounds indicates a sequential improvement, it suggests a 23% year-over-year decline. The company, in April 2026, lowered its consolidated sales volume projections for full-year 2026 to around 3.1 billion pounds of copper from the prior view of 3.4 billion pounds due to an expected delay in achieving full ramp-up of the Grasberg Block Cave mine. Lower sales volumes are expected to weigh on its top line.

The Case for BHPBHP continues to reshape its portfolio toward commodities such as copper and potash, allocating a meaningful portion of its medium-term capital expenditure to these areas. This strategy positions the company to benefit from decarbonization, electrification, population growth and rising living standards in emerging markets. It is also making operations more efficient on the back of smart technology adoption across the entire value chain.

Fiscal 2026 copper production was 1,952.8 kt, within the company’s 1,900-2,000 kt guidance range, despite planned lower grades at Escondida and ore complexity at Spence. Escondida produced 1,261.2 kt, while Antamina output rose 27% to a record 151.5 kt and Copper South Australia delivered 320.7 kt.  BHP’s fiscal 2027 copper guidance of 1,650-1,800 kt points to a near-term volume reset, but the longer-term pipeline remains intact.

BHP has copper projects under execution and a pipeline that could deliver around two Mtpa of attributable copper production by the 2030s. It is planning an Escondida New Concentrator project with a potential $4.4-$5.9 billion investment to replace the aging Los Colorados plant. BHP has approved a pre-commitment funding of $0.5 billion (BHP’s share) for the concentrator, which is expected to have a higher production capacity and add 230-270 kt of copper annually.

Resolution Copper, a joint venture owned by BHP (45%) and Rio Tinto (55%), completed a land exchange in Arizona. This enables the next phase of technical work and development planning for the Resolution Copper project, which is one of the most significant undeveloped copper resources in the United States.

The company’s balance sheet remains strong with cash and cash equivalents of $18.5 billion at the end of fiscal 2026. BHP also ended fiscal 2026 with net debt of $8.7 billion, down from $12.9 billion in fiscal 2025 and below its $10-$20 billion target range.

BHP’s net operating cash flow increased 17% year over year to $21.8 billion in fiscal 2026, partly driven by higher realized prices and cost management. Free cash flow surged 83% to $9.8 billion, after spending $10.3 billion on capital and exploration projects.

BHP remains committed to driving shareholder value, having determined a final dividend of $5 billion, leading to total returns to its shareholders of $8.7 billion for the year. Since the introduction of its capital allocation framework in 2016, BHP has delivered more than $115 billion to its shareholders. BHP offers a dividend yield of roughly 2.9% at the current stock price.

FCX & BHP: Price Performance, Valuation & Other ComparisonsFCX stock has rallied 78% over the past year, while BHP has gained 71.6%.

Image Source: Zacks Investment Research

FCX is currently trading at a forward 12-month earnings multiple of 23.21. BHP is currently trading at a forward 12-month earnings multiple of 18.99, below FCX. 

Image Source: Zacks Investment Research

BHP’s return on equity of 21.6% is higher than FCX’s 10.6%. This reflects BHP’s efficient use of shareholder funds in generating profits.

Image Source: Zacks Investment Research

How the Zacks Consensus Estimate Compares for FCX & BHPThe Zacks Consensus Estimate for FCX’s 2026 sales and EPS implies a year-over-year rise of 10.2% and 57.6%, respectively. The EPS estimates for 2026 have been going up over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for BHP’s current fiscal year sales implies a year-over-year rise of 10.1%. The same for EPS suggests a 5.9% year-over-year increase. The EPS estimates for the current fiscal year have been going south over the past 60 days.

Image Source: Zacks Investment Research

FCX or BHP: Which Is the Better Pick?Both FCX and BHP currently carry a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Both Freeport and BHP present compelling investment cases. FCX is poised to gain from progress in expansion activities that will boost production capacity. Robust financial health allows FCX to invest in growth projects and drive shareholder value.  Strong cash generation, investment in growth projects and higher operational efficacy, aided by the adoption of technology, bode well for BHP Group. BHP appears to have an edge over FCX due to its more attractive valuation. BHP’s higher ROE also indicates that it is more effectively utilizing shareholder funds. Investors seeking exposure to the copper mining space might consider BHP to be the more favorable option at this time.

Bamco Inc. NY bought a new stake in Southern Copper Corporation (NYSE:SCCO – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 5,203 shares of the basic materials company’s stock, valued at approximately $907,000.

Several other institutional investors also recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Southern Copper during the 2nd quarter valued at $1,729,500,000. Bank of New York Mellon Corp acquired a new stake in shares of Southern Copper during the second quarter worth $696,621,000. State Street Corp increased its holdings in Southern Copper by 2.4% in the fourth quarter. State Street Corp now owns 2,862,244 shares of the basic materials company’s stock valued at $410,646,000 after purchasing an additional 66,268 shares during the last quarter. Fisher Asset Management LLC lifted its stake in Southern Copper by 0.3% in the fourth quarter. Fisher Asset Management LLC now owns 2,536,228 shares of the basic materials company’s stock valued at $363,873,000 after buying an additional 7,194 shares during the period. Finally, Bank of America Corp DE bought a new position in Southern Copper during the second quarter worth about $318,448,000. Institutional investors and hedge funds own 7.94% of the company’s stock.

Analyst Ratings Changes A number of analysts recently weighed in on the stock. UBS Group reiterated a “sell” rating and issued a $158.10 price target (up from $143.28) on shares of Southern Copper in a research report on Tuesday, June 30th. Wall Street Zen lowered shares of Southern Copper from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Scotiabank reissued an “underperform” rating and set a $138.34 price target (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. Citigroup reissued a “positive” rating on shares of Southern Copper in a report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Southern Copper from $125.49 to $129.94 and gave the company an “underweight” rating in a research report on Wednesday, June 17th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $146.84.

Read Our Latest Stock Analysis on Southern Copper Southern Copper Stock Performance Shares of SCCO stock opened at $216.79 on Friday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 4.56 and a current ratio of 5.06. Southern Copper Corporation has a 52 week low of $92.94 and a 52 week high of $223.88. The company’s 50 day moving average price is $184.25 and its two-hundred day moving average price is $183.72. The company has a market capitalization of $180.87 billion, a P/E ratio of 31.69, a price-to-earnings-growth ratio of 1.83 and a beta of 1.11.

Southern Copper (NYSE:SCCO – Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.93 by $0.06. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The company had revenue of $4.29 billion during the quarter, compared to the consensus estimate of $4.37 billion. The company’s quarterly revenue was up 40.6% compared to the same quarter last year. On average, analysts expect that Southern Copper Corporation will post 7.61 earnings per share for the current fiscal year.

Southern Copper Increases Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were issued a dividend of $1.10 per share. This is a boost from Southern Copper’s previous quarterly dividend of $1.00. The ex-dividend date was Tuesday, August 11th. This represents a $4.40 dividend on an annualized basis and a yield of 2.0%. Southern Copper’s dividend payout ratio is currently 64.33%.

Insider Activity at Southern Copper In other news, Director Bonilla Luis Miguel Palomino sold 202 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the sale, the director directly owned 1,723 shares in the company, valued at $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders sold 509 shares of company stock valued at $97,753 in the last 90 days. Insiders own 0.07% of the company’s stock.

Southern Copper Profile (Free Report)

Southern Copper Corporation (NYSE: SCCO) is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper’s operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.

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HP (HPQ - Free Report) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.67%. A quarter ago, it was expected that this personal computer and printer maker would post earnings of $0.72 per share when it actually produced earnings of $0.86, delivering a surprise of +19.44%.

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

HP, which belongs to the Zacks Computer - Micro Computers industry, posted revenues of $15.68 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 5.59%. This compares to year-ago revenues of $13.93 billion. The company has topped consensus revenue estimates three times over the last four quarters.

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

HP shares have added about 32.5% since the beginning of the year versus the S&P 500's gain of 12.2%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for HP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $14.92 billion in revenues for the coming quarter and $3.03 on $58.19 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Micro Computers is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Dell Technologies (DELL - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 1.

This computer and technology services provider is expected to post quarterly earnings of $4.88 per share in its upcoming report, which represents a year-over-year change of +110.3%. The consensus EPS estimate for the quarter has been revised 5.5% higher over the last 30 days to the current level.

Dell Technologies' revenues are expected to be $44.79 billion, up 50.4% from the year-ago quarter.

HP Inc. shares HPQ fell 5% in trading after the PC and printer maker reported fiscal third-quarter results that beat Wall Street estimates but raised concerns about margins, PC demand and the sustainability of its earnings outlook.

The company reported revenue of $15.7 billion for the quarter ended July 31, up 12.5% year over year and above analysts' expectations.

Adjusted earnings per share came in at $0.83, also ahead of estimates. However, both results benefited from tariff refunds, while PC unit shipments declined sharply.

HP's third-quarter revenue increased about 13%, with Personal Systems revenue rising 18% to $11.8 billion.

Commercial PC sales increased 22%, helping offset weaker unit volumes.

PC shipments fell 16% year over year as the company raised prices and focused on premium products, including AI PCs.

The resulting increase in average selling prices helped lift revenue despite weaker unit demand.

Printing revenue declined 2% to $3.9 billion, broadly in line with estimates.

Adjusted earnings of $0.83 per share included an $0.11 benefit from tariff refunds. Analysts had expected adjusted EPS of $0.69, according to LSEG data.

HP has been dealing with rising memory chip costs as AI data center construction absorbs semiconductor capacity.

The company has responded by increasing PC prices and redesigning some products, but higher costs continued to weigh on profitability.

Personal Systems operating margin fell to 4.6% from 5.2% in the previous quarter as memory and other commodity costs increased faster than pricing could offset them.

HP expects those pressures to continue into the fourth quarter, with a recovery not expected until fiscal 2027.

CFO Karen Parkhill said the company expects below-seasonal revenue performance in the fourth quarter because of commodity-driven price increases.

At the same time, she said HP expects revenue to grow year over year, supported by pricing actions, gains in premium categories, higher-margin offerings and increased adoption of AI PCs.

For the fourth quarter, HP forecast adjusted EPS of $0.69 to $0.79, compared with analysts' average estimate of $0.67.

However, the forecast includes an estimated $0.08-per-share benefit from tariff refunds. Excluding that benefit, the midpoint of the company's guidance would fall below market expectations.

HP also raised its full-year adjusted EPS forecast to $3.19-$3.29 from $2.90-$3.10. The annual forecast includes an estimated $0.19 benefit from tariff refunds.

BofA maintains underperform ratingBofA Securities raised its price target on HP to $21 from $18 while maintaining an Underperform rating.

The brokerage identified pricing execution, premium and AI PC adoption, market-share gains and resilient reported printing profitability as positives.

However, it expects rising memory costs and higher PC prices to create demand elasticity.

BofA also pointed to continued pressure on core margins excluding tariff benefits and uncertainty related to HP's leadership transition.

The results highlight the challenge facing HP as it attempts to offset rising component costs through higher prices while maintaining demand.

Investors are also looking for greater visibility into the company's margin trajectory and fiscal 2027 outlook.

A month has gone by since the last earnings report for Public Storage (PSA - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Public Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Public Storage Q2 FFO Misses on Same-Store NOI Decline, Revenues BeatPublic Storage reported second-quarter 2026 core FFO per share of $4.17, missing the Zacks Consensus Estimate by 1.9%. Core FFO declined 2.6% from the year-ago quarter.

Results reflected a decrease in same-store NOI by 2.2%. Growth from non-same-store properties and ancillary operations offset weaker same-store revenues. Average occupancy improved 20 basis points to 92.5%.

Quarterly revenues rose 2.6% year over year to $1.23 billion and surpassed the consensus estimate of $1.21 billion.

Public Storage's Same-Store Portfolio Faces PressureSame-store revenues decreased 0.6% year over year to $1.01 billion. Realized annual rental income per occupied square foot declined 0.8% to $21.89, while rental income per available square foot fell 0.6% to $20.24.

Direct operating costs increased 4.3% to $227.7 million, and indirect operating costs rose 5.7% to $32.5 million. Same-store NOI fell to $746.4 million from $763.3 million. The NOI margin contracted 120 basis points to 74.2%.

Public Storage's Lease-Up Assets Fuel GrowthThe non-same-store pool remained Public Storage's main operating growth engine. The portfolio included 441 acquisition, development and expansion properties totaling 39.3 million rentable square feet, representing 17% of its U.S. consolidated portfolio.

Revenues from these properties increased 25.6% during the quarter, while NOI advanced 21.5%. The gains helped counter pressure within the mature same-store portfolio and supported overall self-storage revenue growth.

Public Storage's Ancillary Operations Add SupportAncillary revenues increased 12.7% year over year to $92.9 million from $82.4 million. Ancillary operating costs rose 9% to $36.3 million, allowing the business to generate a wider contribution to consolidated operating results.

Total self-storage facility revenues improved 1.9% to $1.14 billion. However, self-storage operating costs climbed 8.1% to $307.8 million, reflecting the combination of higher same-store expenses and the expansion of the non-same-store portfolio.

Public Storage Expands Its Investment PipelineDuring the quarter, Public Storage acquired 20 self-storage facilities with 1.5 million rentable square feet for $222.5 million. Including activity after quarter-end, the company had acquired or agreed to acquire 44 facilities totaling 3.2 million square feet for $454.9 million.

Public Storage also opened three newly developed facilities and one expansion project during the first six months of 2026. These projects added 0.4 million rentable square feet at a cost of $57.3 million. Its development and expansion pipeline is expected to deliver 4 million square feet at an aggregate cost of $691.7 million.

Public Storage Strengthens Its Balance SheetPublic Storage ended June with $10.3 billion of total indebtedness and approximately $3.8 billion of liquidity. Net debt to EBITDA improved to 2.90X from 3.10X a year earlier, while the weighted average interest rate increased 30 basis points to 3.3%.

During the quarter, the company issued $500 million of 5% senior notes due in 2035. It also established a $3 billion revolving credit facility, a $500 million delayed-draw term loan and a $1 billion commercial paper program. Subsequent to quarter-end, Public Storageissued an additional $900 million of senior notes at an effective rate of 4.855%.

Public Storage Raises Its 2026 Core FFO OutlookPublic Storage raised its 2026 core FFO per share guidance to $16.75-$17.05 from $16.35-$17.00. The revised outlook includes 2 cents per share of expected accretion from financing the National Storage Affiliates Trust and Public Storage Canada transactions.

The company also improved its same-store assumptions. It now expects revenue growth between negative 0.7% and positive 0.3% compared with the prior range of negative 2.2% to flat. Same-store NOI is projected to decline 0.3%-2%, narrower than the earlier expected decrease of 0.5%-3.9%.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Public Storage has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Public Storage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerPublic Storage is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Welltower (WELL - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

Welltower reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.61 for the same period compares with $1.28 a year ago.

Welltower is expected to post earnings of $1.64 per share for the current quarter, representing a year-over-year change of +22.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

Welltower has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Key Takeaways Next-Gen SIEM ARR surpassed $695 million in fiscal Q2, with record quarterly net new ARR.CRWD is winning customers with first-party data, speed, efficiency and a disruptive price point.Rising AI security needs could boost demand as teams monitor threats across AI agents, cloud and identity. CrowdStrike’s (CRWD - Free Report) Next-Gen Security Information and Event Management (SIEM) business continued to grow strongly in the second quarter of fiscal 2027. Ending annual recurring revenue (ARR) for the business surpassed $695 million, while quarterly net new ARR reached a record level. The results show that Next-Gen SIEM is becoming an important part of CrowdStrike’s broader platform.

CrowdStrike is seeing demand from both new and existing customers. Management said that more customers are standardizing on Falcon as the operating system for the security operations center (SOC). The company believes its first-party data advantage and the speed and efficiency of its platform are helping it compete with traditional SIEM products.

CrowdStrike is also competing on cost. Management said Next-Gen SIEM has a disruptive price point because of how the company charges for first-party data generated by its platform. The company sees this as a way to offer faster deployment and better value compared with legacy SIEM products. In the second quarter, a major American power provider replaced a legacy acquired SIEM with CrowdStrike’s Next-Gen SIEM in an eight-figure Falcon Flex deal. Management said the customer selected the product based on its technical capabilities, speed and economics.

The growth of AI could support further demand for Next-Gen SIEM. CrowdStrike said security teams need to monitor activity across AI agents, SaaS, cloud and identity because attacks can move across different environments. This increases the need for a platform like Next-Gen SIEM that can bring security data together. The above-mentioned factors show that continued platform adoption, legacy SIEM replacements and rising AI-related security needs should help Next-Gen SIEM remain an important driver of CRWD's long-term growth.

How Competitors Fare Against CRWDCompetitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

In the third quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security ARR, which increased 60% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.

Though comparatively a small competitor, SentinelOne posted second-quarter fiscal 2027 year-over-year growth of 22% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

CRWD’s Price Performance, Valuation and EstimatesShares of CrowdStrike have jumped 94.5% in the year-to-date period compared with the Zacks Security industry’s return of 65.4%.

CRWD YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 34.77, significantly higher than the industry’s average of 16.77. The Zacks Value Score of F also suggests that CRWD stock is overvalued.

CRWD Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 32.3% and 27.1%, respectively. The estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

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

CrowdStrike just posted its best quarter ever and sent cybersecurity stocks surging, but history shows Palo Alto Networks has a nasty habit of falling on strong earnings reports, and the buy side has already baked in a beat.

Palo Alto Networks (NASDAQ: PANW | PANW Price Prediction) reports fiscal fourth-quarter results Tuesday, September 1, 2026, after the market closes. The setup could not be louder. CrowdStrike (NASDAQ:CRWD) just told the market it had its best quarter ever, with revenue up 26% to $1.47 billion and a raised full-year revenue forecast of roughly $6 billion. Cybersecurity is back in favor, and Palo Alto has to prove the excitement extends to its own ledger.

The complication is that Palo Alto shares have gained 101.73% year to date, closing Friday at $371.59. Options traders are bracing for an approximately 8.5% earnings move. My view heading in is that CrowdStrike’s number is evidence of demand, not about Palo Alto’s execution. They are different businesses with different revenue mixes, and treating one as a proxy for the other is exactly how investors get hurt when results land.

What CrowdStrike’s Beat Actually Tells Us CrowdStrike’s quarter was a clean read on AI security demand. Enterprise buyers accelerated spending because they are worried, and the worry is rational. When a peer raises full-year guidance, the sector tends to rise, and Palo Alto has ridden that trend with an 18.28% gain over the past month.

The read-across only goes so far. CrowdStrike sells endpoint and workload protection through a single-vendor platform. Palo Alto sells firewalls, cloud security, identity, and observability, with hardware still contributing roughly 10% of total revenue. A tailwind for one is not automatic revenue for the other.

Where the read-across is real is in the tone CIOs are taking with their budgets. CEO Nikesh Arora said last quarter that “the latest advancements at the AI frontier have increased the level of urgency around cybersecurity, and redefined the shape of the industry for the coming years.” That matches what CrowdStrike described.

The CrowdStrike recap makes clear that demand is being pulled forward by AI-driven threats rather than generic IT growth. Palo Alto’s Unit 42 has been saying the same thing. Its team simulated a ransomware campaign from initial entry to data exfiltration in 25 minutes, against enterprise defenders, a feat that typically takes days.

The fair way to read CrowdStrike’s report is that it raises the hurdle for Palo Alto rather than clearing it. Expectations moved up across the group. If Palo Alto merely meets its own guide, that will look shy compared to a peer that just raised its number.

The Bar PANW Has Set for Itself Palo Alto’s own guidance is the real benchmark for Tuesday. In its third-quarter release, management guided fourth-quarter revenue to $3.345 billion to $3.355 billion, which would be roughly 32% growth.

The more important number is next-generation security ARR. Management guided that metric to $8.9 billion to $8.95 billion, up 59 to 60% year over year. RPO was guided to $20.9 to $21 billion, and non-GAAP EPS to 96 to 98 cents.

Full-year revenue was guided to $11.415 billion to $11.425 billion, with the full-year EPS range at $3.77 to $3.79. Polymarket currently prices in a 94.5% probability of an earnings beat, so a modest beat is already priced in.

History complicates the setup. Palo Alto has beaten estimates in all six of its most recent reported quarters, but the average day-of reaction to those beats was-3.73%. The last three quarters produced day-of reactions of -7.42%, -6.82%, and -5.64%.

The pattern says the real bar is whatever the buy side has already assumed on top of the printed guide. A beat paired with an in-line guide has repeatedly disappointed. That is the environment Palo Alto walks into on Tuesday, and the confirmed release schedule gives management only one shot to reset the reaction.

Organic Growth Is the Number That Matters The CyberArk and Chronosphere acquisitions contributed $388 million to third-quarter revenue and $1.63 billion of the NGS ARR base. That is a lot of reported growth that is not organic, and it is why the headline numbers overstate underlying momentum.

Strip out the deals, and the picture is still good but more modest. Organic NGS ARR grew 28%, and organic current RPO grew 17%, an acceleration from 15% in the prior quarter. Direction matters more than level here.

Product-level signals were stronger. Next-generation firewall bookings rose nearly 40%, SASE ARR grew 40%, and Prisma Airs customer count tripled from about 100 to over 300. XIM ARR crossed $600 million while growing 100%.

Integration risk is real. Stock-based comp reached 17% of revenue because of acquisition-related grants, and Palo Alto swung to a GAAP operating loss of $183 million. Management says the SBC ratio should normalize on a 12 to 18 month run rate.

The number I will be watching is organic NGS ARR. If it stays at or above 28%, the platform story is intact. If it slips into the low twenties, the CrowdStrike read-across breaks down, and the sector rally starts to look uneven.

What the Setup Means for Tuesday Night Valuation is doing a lot of the arguing. Palo Alto trades at a trailing P/E of 333 and a forward P/E of 82. The analyst target of $362.71 now sits below the current price, which is unusual for a stock this beloved.

Analysts still lean bullish, with 45 buy ratings, 9 holds, and 1 sell. But the consensus target says the sell side has not chased the recent rally. That gap is what makes Tuesday a coin flip on price even if the fundamentals land clean.

Options positioning is another read. The September 18 expiration carries 52,657 calls and 55,510 puts of open interest, a balanced setup that leans slightly protective. Traders are hedging, not chasing.

Fiscal 2027 guidance is the other swing factor. Management said last quarter it will begin segment-level revenue disclosures across Network Security, Cortex, and Identity starting in fiscal 2027. Whatever framework accompanies that shift will set the tone for the next year of estimate revisions.

My position is this. CrowdStrike’s beat is evidence of a strong demand backdrop, and that is a separate question from whether Palo Alto will exceed its already aggressive guidance. The stock has been given credit for both. If organic NGS ARR growth holds near 28% and management points to a credible fiscal 2027 setup, the rally is defensible. If either piece wobbles, the historical pattern of post-earnings drawdowns will reassert itself, and an 8.5% move lower is the market’s starting estimate.

Contact [email protected] for any questions or corrections.

Electric vehicles (EVs) have had a rough ride over the last two years in the U.S., with major carmakers like Ford and Honda curtailing EV production, or even canceling some EV models outright.

That stands in sharp contrast to the rest of the world, particularly China, where EV carmakers – juiced by government incentives and an opportunity to seize market share from dominant U.S. and European brands – are flourishing after years of early stage struggles.

One Chinese EV maker, Nio (NIO +0.23%), has been hit particularly hard over the last five years. But its upcoming earnings report could send the stock soaring.

Here's why Nio's upcoming earnings report could be a game changer for its shareholders.

Image source: The Motley Fool.

How Nio is differentAlthough battery-powered electric vehicles (BEVs) are cheaper to operate and maintain than gasoline or hybrid vehicles, there are two important metrics on which they aren't yet competitive with their fossil-fuel-powered brethren: cost and refueling time.

BEVs generally cost thousands of dollars more than comparable gas-powered vehicles or hybrids, and powering them to a full charge, even at a high-powered DC fast-charging station, takes 20 to 60 minutes, far longer than filling up at a gas station.

Nio has come up with a unique solution for these problems. Instead of including the batteries in the purchase price of a Nio vehicle, Nio allows buyers to subscribe to a "Battery-as-a-Service" feature for a monthly fee.

Image source: Getty Images.

Paying the fee allows drivers to visit a special Nio "battery swap" station where they swap their depleted battery array for a fully charged one. The process takes only a few minutes, comparable to the time it takes to fill a gas tank.

This system allows Nio to advertise a lower sticker price for its vehicles and lock in a recurring revenue stream from the battery-swap service.

The only problem for Nio is that, for the battery swap service to be a viable option, it needs to build and maintain a network of battery swap stations, which entails high upfront costs.

Why Nio's earnings report is criticalNio's shares bottomed out at $3.14/share in early 2025. After it posted a quarterly net profit for the first time, the stock jumped to $6.87/share in April, but has since fallen back to $4.38/share, down 93% from its all-time high.

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Despite the decline in its share price, Nio's trailing twelve-month (TTM) revenue has skyrocketed this year to $14.3 billion.

That's because Nio's vehicle deliveries have been soaring. As of July 31, Nio had delivered 227,057 vehicles, a 68% increase from July 2025.

But revenue growth has never been a problem for Nio. Profitability has. Nio's TTM net losses had been moving in the wrong direction for almost a decade, hitting a low point of -$3.4 billion in Q3 2025.

Since then, the company has seen remarkable improvement in its bottom line. It even managed to squeak out a net profit of $17.1 million in Q4 2025, only to post a net loss again in Q1 2026.

That single quarter of net profit immediately caused a 20% jump in the company's stock price. Over the next several weeks, it continued to climb to a 45.6% gain. But the return to a net loss in Q1 had the exact opposite effect: an immediate plunge in share price, followed by months of declines.

If Nio's management announces a net profit in its Q2 earnings report on Tuesday, investors should expect the stock to immediately pop, just like it did in Q4.

The South Korean government's dismissal of the findings of a congressional report alleging it's waged a targeted campaign against U.S.-based Coupang — commonly known as the Amazon of South Korea — is straining the relationship between the two global allies, officials in Congress and people close to the company told CNBC.

CNBC spoke with nearly a dozen people familiar with the Coupang-related tensions, some of whom asked not to be named in order to discuss sensitive matters. The company's representatives and supporters on Capitol Hill say they're seeking a quick end to what they describe as South Korea's campaign against the online retailer. People familiar with the situation raised the specter of retaliation from Congress or the White House, including potentially additional tariffs on South Korea, if the dispute drags on.

The report by the House Judiciary Committee's Republicans alleges the South Korean government waged an unprecedented offensive on Coupang — which is headquartered in Seattle and does the bulk of its business in South Korea — over a data breach that the company maintains was minimal.

This is really about the relationship between two key allies.

Chris Stewart

Former GOP congressman from Utah and president of lobbying firm Skyline Capitol, which has consulted for Coupang

The South Korean government disagrees on the scope of the breach and has said consumers in the country faced potential harm from their personal details being exposed. It held hearings, threatened criminal charges against Coupang's interim CEO, and levied a record-breaking data-privacy fine on the company.

"This isn't about just some commercial dispute," Chris Stewart, a former Republican congressman from Utah and president of lobbying firm Skyline Capitol, which has a consulting relationship with Coupang, told CNBC about the Coupang issue. "Policymakers, leaders in Congress and the White House understand this is really about the relationship between two key allies."

"The worst thing that could happen is if we get into a tit-for-tat environment, where [the U.S. seeks] to punish Korea in some way or tie this to an increase in tariffs. That's not my hope or desire at all," he said. But if South Korea doesn't back down, he said, "ultimately the president has the power of tariffs, which can be very powerful."

The South Korean government, through its embassy in Washington, said its alliance with the U.S. is "stronger than ever" and criticized the congressional report, which the Judiciary Committee released in July, as largely reflecting only Coupang's claims.

"The Korean Government has consistently engaged with members of the U.S. Congress and officials of the U.S. administration to explain our position regarding the Coupang matter, and we will continue these efforts going forward," a spokesperson for the embassy said.

The Coupang dispute is unfolding against a broader backdrop of friction in the crucial U.S.-South Korea alliance.

President Donald Trump on Aug. 16 said he would scale back annual military drills with South Korea. Asked in late August if the move was related to Coupang, a White House official, who asked not to be named in order to discuss the dispute, told CNBC via email that "there is no direct connection."

Still, the official cited a Trump executive order from last year that targets foreign governments that the administration says are overregulating U.S. technology companies.

"This is not a new focus or issue. That said, the Korean government has been misaligned with us on a number of bilateral issues," the official said.

Sen. Bernie Moreno, R-Ohio, last week sent a letter to U.S. Trade Representative Jamieson Greer urging a formal investigation into South Korea, and potentially additional tariffs on the country, over its treatment of Coupang in the aftermath of the data breach, which he called a "regulatory crusade."

"This specific data breach deserves investigation and may warrant even-handed enforcement. However, the larger pattern emerging in South Korea is cause for intense concern. Seoul has weaponized a small incident into a pretext for widespread weaponization against American enterprise," Moreno wrote.

Coupang spokesperson Erika Reynoso declined to comment on the prospect of tariffs or the specifics of South Korea's response.

"We regret the circumstances that led to a congressional investigation, but we acknowledge the Committee's thorough work to bring the facts to light. We continue to seek a constructive resolution that will strengthen the US-ROK alliance," Reynoso said in a statement, using an abbreviation for the Republic of Korea.

Pressure from Coupang shareholdersBut there is pressure on the U.S. government to act.

In January, two Coupang investors — venture capital firm Greenoaks Capital Partners and tech investment firm Altimeter Capital — petitioned Greer to open a Section 301 investigation into whether the South Korean government was discriminating against the company and to assess additional tariffs. Section 301 of the Trade Act of 1974 allows the U.S. Trade Representative to investigate unfair foreign practices affecting U.S. commerce.

No official investigation has been announced. A spokesperson for Greer did not respond to requests for comment. Marney Cheek, of law firm Covington & Burling, who has represented both investors in the case, also did not respond to a request for comment.

Greenoaks is Coupang's No. 2 shareholder after SB Investment Advisers, holding about 55.3 million shares or 3.38% of shares outstanding, according to FactSet data. Altimeter reported no Coupang holdings as of March 31, after selling its position of roughly 15.7 million shares.

While Trump has not indicated he would pursue an additional tariff investigation, those close to the situation pointed to his repeated commitments to protecting U.S. firms abroad.

"President Trump has been very vocal about fairness for American companies and not getting ripped off," Rep. Michael Baumgartner, R-Wash., who sits on the House Judiciary Committee, said when asked about the potential of retaliatory tariffs stemming from the Coupang dispute. "So yeah, I think [Trump's response] could be significant."

U.S.-South Korea trade pact stallsSouth Korea is the seventh-largest U.S. trading partner, according to the U.S. Census Bureau in June. In 2025, the two countries renegotiated a trade deal as part of Trump's sweeping global tariffs. A key aspect of that deal was a lower tariff rate for South Korea in exchange for a $350 billion investment in U.S. shipbuilding and national security, as well as reducing regulation of U.S. companies. 

But South Korea has been slow to finalize projects related to the $350 billion pledged as part of the trade deal, causing friction and threats of tariffs earlier this year from Trump.

In July, Trump imposed new import duties on South Korea and dozens of other countries, citing forced labor violations.

Secretary of State Marco Rubio spoke about the complexities of the U.S.-South Korea relationship during an appearance before the House Foreign Affairs Committee in June. The alleged hostility of South Korea toward Coupang and others has "impacted our ability to conclude a trade agreement with them because of some of their behavior towards American companies," Rubio said.

A covert missionThe U.S. report laid out what Republican investigators said were South Korea's actions involving Coupang since the data breach was disclosed in November, leading to the resignation of the company's CEO, Park Dae-jun, the following month. He apologized in a public statement for the breach, saying he felt "a deep sense of responsibility for the outbreak."

Congressional investigators described what they said were excessive fines, harassment and threats of criminal charges directed by the South Korean government at Coupang. They detail a response to the data breach from the country's authorities that sounds at points like something out of a spy novel. 

According to the report, the South Korean government compelled Coupang to hire divers for a covert mission to retrieve a laptop used in the breach by a disgruntled former employee — who is a Chinese national — from a river in Shanghai.

The report outlines the involvement of the Korean National Intelligence Service, or NIS, leading up to the recovery of the computer. Additional documents in the committee's possession — which were obtained by CNBC — include contemporaneous notes from a Coupang representative's phone that describe NIS representatives instructing the company to hire a diver and extract the computer from the river in December.

An internal company memo from around the time of the recovery mission — also obtained by CNBC — indicates Coupang coordinated the computer recovery at the behest of a high-ranking national security officer from the South Korean president's office. Call logs from before, during and after the retrieval show more than 200 calls between South Korean officials and representatives of Coupang, the committee reported.

The South Korean government has denied the report's findings. In a statement to CNBC, the spokesperson for the South Korean embassy said allegations that the government helped coordinate the retrieval are "entirely unfounded."

"The National Intelligence Service (NIS) conducted only working-level consultations with Coupang necessary to facilitate information sharing and prevent further harm in connection with the large-scale personal data breach. At no point did the NIS coerce or instruct Coupang to take any particular action," the spokesperson said.

In late July, after the congressional report was issued, the South Korean government submitted a rebuttal to the committee which the embassy also provided to CNBC.

The rebuttal says the data breach affected 37.55 million people, while the congressional report counters that the "former employee only stored and retained information related to approximately 3,000 accounts." The difference stems from the amount of data that was exposed versus what was retained.

Seoul, in its response, also downplayed the 625 billion won, or $409 million, fine the government levied on Coupang in June for the breach and for allegedly illegally collecting personal information. The New York Times reported that the fine was the largest data-privacy penalty imposed on a company by South Korea. But in its rebuttal, South Korea noted the fine fell far short of the 3% of a company's revenue it could have charged under the country's laws. Coupang reported 2025 revenue of $34.5 billion.

'A shame and a surprise'South Korea's response to the committee report hasn't sat well with Washington Republicans. One person familiar with the thinking of lawmakers on the House Judiciary, Foreign Affairs and Armed Services committees, who asked not to be named in order to speak candidly, emphasized the importance of the relationship between the U.S. and South Korea and called the episode "a shame and a surprise."

The person said Congress was considering all tools at its disposal, including sanctions.

"This report is too comprehensive and too full of facts to be rejected. Calling us liars will set us back even further," the person said, referring to U.S.-South Korea relations.

A former senior Trump White House official said "no one in Congress or the White House can understand why the South Korean government continues to lie about its attacks on U.S. companies, especially Coupang. This behavior is seriously undermining Korea's credibility in the U.S., and it looks performative to benefit their relationship with China." The official asked not to be named in order to speak candidly.

The South Korean embassy spokesperson called the suggestion "entirely unfounded."

However, the reaction on Capitol Hill — where Coupang has mounted an extensive lobbying effort — has not been universal outrage.

One Capitol Hill Democrat familiar with the Judiciary probe, who asked not to be named in order to speak candidly, questioned the GOP's intense focus on Coupang, given the company's limited footprint in the U.S., and pointed to the company's ties to the Trump White House.

Coupang donated $1 million to Trump's inaugural fund in 2024, putting it on par with Google, Meta and Nvidia. Kevin Warsh, now chairman of the Federal Reserve, was a Coupang board member from 2019 until earlier this year. And Rob Porter, its chief global affairs officer, was White House staff secretary in the first Trump administration.

But Coupang's corporate political action committee has frequently donated to candidates from both parties. And other Democrats, especially those from Coupang's home state, Washington, have joined their Republican colleagues in denouncing South Korea's posture toward the company.

Rep. Suzan DelBene, who represents part of the Seattle metropolitan area, said at a Ways and Means Committee hearing in January that she'd heard from Coupang and others that South Korea was violating the antidiscrimination commitments in the 2025 trade agreement.

And Sen. Maria Cantwell, also a Washington Democrat, sent a letter in February to South Korea's ambassador in Washington expressing her "grave concern" over the country's treatment of Coupang.

Undermining an allianceCoupang is not the first American company to complain of targeting by South Korean regulators. Other U.S.-based digital companies such as Google and Netflix have at times found themselves crosswise with the South Korean government.

Still, Coupang's supporters say they've never seen South Korea go after a company with the intensity with which it has pursued Coupang.

Baumgartner, who in late July introduced a bill that would give Congress the power to deem individual foreign officials subject to deportation or denial of entry if they engage in "economic discrimination" against the U.S., called South Korea's response "farcical" and "dismissive."

"Whatever happened with the data breach, none of it merited this over-the-top, punitive response," he said.

— Kevin Breuninger and Luke Fountain contributed to this report.

PORTLAND, Tenn., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. (“Shoals”) (Nasdaq: SHLS), a global leader in electrical infrastructure solutions for the energy transition market, today announced a favorable outcome in its patent infringement lawsuit against Voltage, LLC and Ningbo Voltage Smart Production Co. (collectively “Voltage”) in the U.S. District Court for the Middle District of North Carolina.

In a decisive win for Shoals during today’s ruling, the jury found that Voltage willfully infringed Shoals’ patents, awarded Shoals over $96 million in damages and soundly rejected Voltage’s arguments challenging the validity of Shoals’ patents. The judgment is subject to potential further increase at the Court’s discretion due to the jury’s finding of willfulness. Further, the Court indicated that it will grant a preliminary injunction preventing the manufacture, distribution or sale of the Voltage LYNX product in the United States with immediate effect.  

The North Carolina verdict follows multiple rulings that upheld Shoals' intellectual property, including Shoals’ June victory before the International Trade Commission (ITC), which found that Voltage’s LYNX product infringed Shoals’ patents covering aspects of its Big Lead Assembly (BLA) products and barred importation of Voltage’s infringing products. The Presidential Review Period for the ITC determination has now lapsed without intervention, bringing that matter to final resolution.

Together, the North Carolina verdict and ITC determination reinforce the strength of Shoals’ intellectual property portfolio and mark important victories for U.S.-developed technologies that support critical energy infrastructure, domestic manufacturing, and fair competition.

“Shoals’ patented BLA solution helped revolutionize the solar industry,” said Brandon Moss, CEO of Shoals. “These outcomes affirm the strength of our intellectual property and the importance of protecting the innovations behind our differentiated solutions. We are grateful to the Court and jury for their time, attention, and careful consideration. Shoals will continue to compete aggressively, invest in American manufacturing, and defend the technology that supports our long-term growth.”

Shoals has consistently maintained that intellectual property protections are essential to advancing U.S. innovation, encouraging domestic investment, and ensuring companies can compete on the strength of their technology.

That principle is especially important in Tennessee, where advanced manufacturers like Shoals are investing in engineering talent, skilled jobs, and technologies that strengthen the state’s economy.

"Tennessee's manufacturers and innovators rely on a strong intellectual property system to support investment, job creation, and economic growth,” said Josh Brown, President and CEO of the Tennessee Chamber of Commerce. “We applaud the protections afforded by the rule of law and the recognition of the importance of intellectual property rights. Companies like Shoals that invest in innovation, engineering, and advanced manufacturing help strengthen Tennessee's economy and America's competitiveness."

About Shoals Technologies Group

Shoals Technologies Group is a leading manufacturer of advanced electrical infrastructure solutions for mission critical applications across utility scale solar, battery storage, and data center power systems. Since its founding in 1996, the Company has designed innovative technologies and systems solutions that allow its customers to substantially increase installation efficiency and safety while improving system performance and reliability at scale. Shoals Technologies Group is a recognized leader in the energy transition industry. For additional information, please visit: https://www.shoals.com. 

Forward-Looking Statements:

This press release contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” “potential,” “commitment,” “outlook,” “continue,” “goal” or any other similar words are intended to identify our forward-looking statements. Although we believe that the expectations and assumptions reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in these forward-looking statements. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this presentation except as required by applicable law or regulation. For important information on forward-looking statements, please see our most recent earnings release for Q2 2026 on our investor website at https://investors.shoals.com.

Shoals Media Relations
Lindsey Williams, VP of Marketing and External Communications
[email protected]

Shoals Investor Relations
Matt Tractenberg, VP of Finance and Investor Relations
[email protected]

A month has gone by since the last earnings report for Ventas (VTR - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ventas due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Ventas, Inc. before we dive into how investors and analysts have reacted as of late.

Ventas Q2 FFO & Revenues Beat Estimates on Strong SHOP GrowthVentas reported second-quarter 2026 normalized FFO per share of 97 cents, beating the Zacks Consensus Estimate of 96 cents by 1.04%. The metric increased 9% from the year-ago quarter.

Revenues climbed 21.7% year over year to $1.73 billion and surpassed the consensus estimate of $1.67 billion by 3.72%. Growth was led by the SHOP, where same-store cash NOI rose 16.3%.

Senior Housing Revenues Fuel the Top LineResident fees and services increased 32% year over year to $1.36 billion, accounting for most of the company’s revenue expansion. The increase reflected both portfolio growth and stronger same-store senior housing performance.

Rental income from the OM&R portfolio rose 3.5% to $228.6 million. However, rental income from triple-net leased properties declined 18.2% to $124.9 million.

SHOP Metrics Show Stronger DemandSHOP same-store average occupancy improved 300 bps year over year to 90.9%. Average monthly RevPOR increased 5% to $5,528, supporting an 8.6% rise in same-store cash operating revenues to $979.6 million.

Same-store SHOP operating expenses increased 4.9% to $621.1 million, while management fees rose 12.3% to $53.8 million. Revenue growth outpaced these costs, lifting the same-store cash NOI margin by 210 bps to 31.1%.

Same-Store NOI Rise Across Major SegmentsTotal company same-store cash NOI advanced 10.3% year over year to $563 million. SHOP remained the primary contributor, with same-store cash NOI increasing 16.3% to $304.7 million.

The OM&R portfolio generated same-store cash NOI of $142.7 million, up 4.6%. Its cash operating revenues rose 4.2% to $214.9 million, while the cash NOI margin expanded 30 bps to 66.4%.

Triple-net same-store cash NOI increased 3.1% to $115.6 million. Together, gains across all three operating segments supported the company’s double-digit same-store NOI growth.

Ventas Expands InvestmentsVentas closed $2.2 billion of senior housing investments during the second quarter, bringing year-to-date investment volume to $3.4 billion. Management expects these investments to enhance the company’s multiyear growth rate and generate attractive financial returns.

To fund its 2026 investment activity, Ventas settled 31.4 million shares of common stock under equity forward sales agreements year to date for gross proceeds of $2.6 billion. It also had $1.6 billion of unsettled equity forward sales agreements, bringing total equity capital to $4.2 billion.

Strengthens Leverage & LiquidityNet debt to further adjusted EBITDA improved to 4.7 times at quarter-end from 5.0 times sequentially and 5.6 times year-over-year. Management attributed the improvement to SHOP NOI growth and equity-funded senior housing investments.

Ventas ended June with $4.9 billion of available liquidity, including credit facility availability, cash and cash equivalents and unsettled equity forward sales agreements outstanding. Cash and cash equivalents totaled $199 million.

Raises 2026 FFO OutlookManagement raised its 2026 normalized FFO per-share guidance to $3.85-$3.90 from $3.82-$3.89. The midpoint increased to $3.88 from $3.86, primarily due to higher accretive senior housing investment activity.

The company reaffirmed expectations for SHOP same-store cash NOI growth of 15%-17%, supported by occupancy growth of roughly 300 bps and RevPOR growth of about 5%.

The updated outlook assumes total company same-store cash NOI growth of 9%-10.5%. The guidance also incorporates approximately $646 million of interest expense at the midpoint. The company raised its 2026 senior housing investment target to $4.5 billion from $3 billion.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

VGM ScoresCurrently, Ventas has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Ventas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerVentas belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, SL Green (SLG - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

SL Green reported revenues of $171.85 million in the last reported quarter, representing a year-over-year change of +16.5%. EPS of -$0.38 for the same period compares with $1.63 a year ago.

SL Green is expected to post earnings of $1.50 per share for the current quarter, representing a year-over-year change of -5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +19.4%.

SL Green has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sherwin-Williams due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Sherwin-Williams’ Q2 Earnings Beat Estimates on Broad-Based Sales GrowthSherwin-Williams reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%.

Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results.

Selling, general and administrative expenses increased to $2.1 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to the Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter.

Segmental ReviewPaint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million.

Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%.

Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%.

Cash Returns & Balance SheetSherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares.

As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions.

OutlookFor the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors.

For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10.

Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

VGM ScoresAt this time, Sherwin-Williams has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Quarterly total revenues reached RMB25.7 billion (US$3.8 billion)1
Quarterly deliveries were 98,330 vehicles

BEIJING, China, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended June 30, 2026.

Operating Highlights for the Second Quarter of 2026

Total deliveries for the second quarter of 2026 were 98,330 vehicles, representing an 11.5% year-over-year decrease.   2026 Q2 2026 Q1 2025 Q4 2025 Q3 Deliveries 98,330 95,142 109,194 93,211             2025 Q2 2025 Q1 2024 Q4 2024 Q3 Deliveries 111,074 92,864 158,696 152,831            As of June 30, 2026, in China, the Company had 495 retail stores in 160 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 220 cities, and 4,097 super charging stations in operation equipped with 22,593 charging stalls. Financial Highlights for the Second Quarter of 2026

Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026.Vehicle margin2 was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026.Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026.Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026.Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026.Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026.Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026.Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026. Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss3 was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026.Diluted net loss per ADS4 attributable to ordinary shareholders was RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.03 diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.26 diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP diluted net loss per ADS attributable to ordinary shareholders was RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.37 non-GAAP diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025 and RMB2.09 non-GAAP diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026.Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026. Free cash flow5 was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026. Key Financial Results(in millions, except for percentages and per ADS data)

     For the Three Months Ended % Change6 June 30,
2025 March 31,
2026 June 30,
2026 YoY QoQ RMB RMB RMB    Vehicle sales28,885.1 21,533.2 24,066.5 (16.7)% 11.8%Vehicle margin19.4% 6.1% 9.4% (10.0)pts 3.3pts          Total revenues30,245.6 22,982.9 25,666.9 (15.1)% 11.7%Gross profit6,067.0 1,808.0 2,836.1 (53.3)% 56.9%Gross margin20.1% 7.9% 11.0% (9.1)pts 3.1pts          Operating expenses(5,240.0) (4,806.8) (5,136.9) (2.0)% 6.9%Income/(Loss) from operations827.0 (2,998.8) (2,300.9) N/A (23.3)%Operating margin2.7% (13.0)% (9.0)% (11.7)pts 4.0pts          Net income/(loss)1,096.9 (2,276.0) (1,705.3) N/A (25.1)%Non-GAAP net income/(loss)1,468.2 (2,108.0)  (1,498.5) N/A (28.9)%          Diluted net earnings/(loss) per ADS attributable to ordinary shareholders1.03 (2.26) (1.69) N/A (25.2)%          Non-GAAP diluted net earnings/(loss) per ADS attributable to ordinary shareholders1.37 (2.09) (1.49) N/A (28.7)%          Net cash (used in)/provided by operating activities(3,036.2) (6,091.0) 15.0 N/A N/AFree cash flow (non-GAAP)(3,841.8) (7,388.3) (1,300.8) (66.1)% (82.4)%           Recent Developments

Delivery Update

In July 2026, the Company delivered 30,468 vehicles. As of July 31, 2026, in China, the Company had 490 retail stores in 159 cities, 536 servicing centers and Li Auto-authorized servicing shops operating in 219 cities, and 4,141 super charging stations in operation equipped with 22,841 charging stalls.
Product Refresh

In June 2026, the Company launched and commenced deliveries of its all-new Li L8. This model is available in two trims: Ultra and Livis. Both trims come standard with four zero-gravity seats, a 72.7 kWh 5C battery, Li Auto’s third-generation range extender, and the Qualcomm Snapdragon 8797 chip, alongside steer‑by‑wire and rear‑wheel steering. Li L8 Ultra features Li Auto’s third‑generation dual‑chamber, dual‑valve Magic Carpet Air Suspension and a proprietary MACH M100 chip, while Li L8 Livis features a proprietary 800V active suspension system, electro-mechanical brake, and dual MACH M100 chips. The Li L8 Ultra and Li L8 Livis are priced at RMB369,800 and RMB429,800, respectively.In July 2026, the Company launched and commenced deliveries of the new Li L6. The model features a new-generation all-aluminum suspension and dual-valve CDC for its chassis, the MACH M100 chip and fully upgraded perception hardware for its assisted driving system, and an EREV-dedicated 51 kWh LFP super charging battery. The new Li L6 is priced at RMB249,800.
Livis Day

In June 2026, the Company hosted Livis Day, a launch event for software and embodied AI, systematically showcasing Li Auto’s new-generation cabin interaction experience alongside a series of proprietary breakthroughs. These included the language intelligence models MACH Mind-Pro and MACH Mind-Edge, the machine intelligence model MACH VLA, and the world’s first dynamic dataflow AI chip, the MACH M100.
US$1.0 Billion Share Repurchase Program

Pursuant to its US$1.0 billion share repurchase program announced on March 24, 2026, the Company repurchased a total of 41,232,100 Class A ordinary shares at an aggregate consideration of HK$2.1 billion on the HKEX and a total of 9,487,026 ADSs (representing 18,974,052 Class A ordinary shares) at an aggregate consideration of US$150.9 million on the Nasdaq in the second quarter of 2026. As of the date of this press release, the Company has repurchased a total of approximately 91.7 million Class A ordinary shares (including approximately 23.7 million ADSs) for an aggregate consideration of approximately US$631.5 million.
CEO and CFO Comments

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China’s RMB200,000-and-above NEV market in the first half of 2026. We have completed the upgrade of Li L series and are now refreshing our BEV lineup. Notably, the new Li L6 generated robust order flow, and we are confident that it will carry on the success of the Li i6 and reinforce our leading position in the RMB200,000-to-300,000 SUV market. Our enhanced product portfolio positions us well for growth. Backed by our unwavering user-centric product philosophy and leading in-house technologies, we will continue to pursue product excellence, expand our global footprint, and forge a sustainable path toward long-term value creation.”

Mr. Tie Li, chief financial officer of Li Auto, added, “In the second quarter of 2026, our gross margin improved sequentially to 11.0%, benefiting from the launch of the all-new Li L9. We anticipate further margin expansion for the second half of the year as our product mix optimizes, with a higher sales contribution from the Livis trim and the launch of refreshed BEV models and Li i9. Coupled with a sustained focus on operational efficiency, we expect our bottom-line to improve gradually. Balancing growth and profitability through disciplined capital allocation, we will steadfastly execute our core strategies in product innovation, technological advancement, and global expansion to secure our future competitiveness.”

Financial Results for the Second Quarter of 2026

Revenues

Total revenues were RMB25.7 billion (US$3.8 billion) in the second quarter of 2026, representing a decrease of 15.1% from RMB30.2 billion in the second quarter of 2025 and an increase of 11.7% from RMB23.0 billion in the first quarter of 2026.Vehicle sales were RMB24.1 billion (US$3.5 billion) in the second quarter of 2026, representing a decrease of 16.7% from RMB28.9 billion in the second quarter of 2025 and an increase of 11.8% from RMB21.5 billion in the first quarter of 2026. The decrease in revenue from vehicle sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries and a lower average selling price due to a different product mix. The increase in revenue from vehicle sales over the first quarter of 2026 was primarily attributable to a higher average selling price due to a different product mix and the increase in vehicle deliveries.Other sales and services were RMB1.6 billion (US$235.9 million) in the second quarter of 2026, representing an increase of 17.6% from RMB1.4 billion in the second quarter of 2025 and an increase of 10.4% from RMB1.4 billion in the first quarter of 2026. The increase in revenue from other sales and services over the second quarter of 2025 and the first quarter of 2026 was mainly due to increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales.
Cost of Sales and Gross Margin

Cost of sales was RMB22.8 billion (US$3.4 billion) in the second quarter of 2026, representing a decrease of 5.6% from RMB24.2 billion in the second quarter of 2025 and an increase of 7.8% from RMB21.2 billion in the first quarter of 2026. The decrease in cost of sales over the second quarter of 2025 was primarily due to the decrease in vehicle deliveries. The increase in cost of sales over the first quarter of 2026 was primarily attributable to a higher average cost of sales due to a different product mix and the increase in vehicle deliveries.Gross profit was RMB2.8 billion (US$418.0 million) in the second quarter of 2026, representing a decrease of 53.3% from RMB6.1 billion in the second quarter of 2025 and an increase of 56.9% from RMB1.8 billion in the first quarter of 2026.Vehicle margin was 9.4% in the second quarter of 2026, compared with 19.4% in the second quarter of 2025 and 6.1% in the first quarter of 2026. The change in vehicle margin over the second quarter of 2025 and the first quarter of 2026 was mainly attributable to a different product mix.Gross margin was 11.0% in the second quarter of 2026, compared with 20.1% in the second quarter of 2025 and 7.9% in the first quarter of 2026. The change in gross margin over the second quarter of 2025 and the first quarter of 2026 was mainly due to the change in vehicle margin.
Operating Expenses

Operating expenses were RMB5.1 billion (US$757.1 million) in the second quarter of 2026, representing a decrease of 2.0% from RMB5.2 billion in the second quarter of 2025 and an increase of 6.9% from RMB4.8 billion in the first quarter of 2026.Research and development expenses were RMB2.8 billion (US$409.1 million) in the second quarter of 2026, representing a decrease of 1.2% from RMB2.8 billion in the second quarter of 2025 and an increase of 2.0% from RMB2.7 billion in the first quarter of 2026. Research and development expenses remained relatively stable compared with the second quarter of 2025 and the first quarter of 2026.Selling, general and administrative expenses were RMB2.3 billion (US$335.7 million) in the second quarter of 2026, representing a decrease of 16.2% from RMB2.7 billion in the second quarter of 2025 and an increase of 11.2% from RMB2.0 billion in the first quarter of 2026. The decrease in selling, general and administrative expenses over the second quarter of 2025 was primarily due to decreased employee compensation. The increase in selling, general and administrative expenses over the first quarter of 2026 was primarily due to increased expenses related to marketing and promotional activities. Income/(Loss) from Operations

Loss from operations was RMB2.3 billion (US$339.1 million) in the second quarter of 2026, compared with RMB827.0 million income from operations in the second quarter of 2025 and RMB3.0 billion loss from operations in the first quarter of 2026. Operating margin was negative 9.0% in the second quarter of 2026, compared with 2.7% in the second quarter of 2025 and negative 13.0% in the first quarter of 2026. Non-GAAP loss from operations was RMB2.1 billion (US$308.6 million) in the second quarter of 2026, compared with RMB1.2 billion non-GAAP income from operations in the second quarter of 2025 and RMB2.8 billion non-GAAP loss from operations in the first quarter of 2026.
Net Income/(Loss) and Net Earnings/(Loss) Per Share

Net loss was RMB1.7 billion (US$251.3 million) in the second quarter of 2026, compared with RMB1.1 billion net income in the second quarter of 2025 and RMB2.3 billion net loss in the first quarter of 2026. Non-GAAP net loss was RMB1.5 billion (US$220.9 million) in the second quarter of 2026, compared with RMB1.5 billion non-GAAP net income in the second quarter of 2025 and RMB2.1 billion non-GAAP net loss in the first quarter of 2026.Basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.69 (US$0.25) in the second quarter of 2026, compared with RMB1.09 and RMB1.03 basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.26 basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB1.49 (US$0.22) in the second quarter of 2026, compared with RMB1.46 and RMB1.37 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the second quarter of 2025, respectively, and RMB2.09 non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2026.
Cash Position, Operating Cash Flow and Free Cash Flow

Cash position7 was RMB87.5 billion (US$12.9 billion) as of June 30, 2026.Net cash provided by operating activities was RMB15.0 million (US$2.2 million) in the second quarter of 2026, compared with RMB3.0 billion net cash used in operating activities in the second quarter of 2025 and RMB6.1 billion net cash used in operating activities in the first quarter of 2026. The change in net cash provided by operating activities over the second quarter of 2025 and the first quarter of 2026 was mainly due to the timing differences between cash received from customers and payments for inventory purchases.Free cash flow was negative RMB1.3 billion (US$191.7 million) in the second quarter of 2026, compared with negative RMB3.8 billion in the second quarter of 2025 and negative RMB7.4 billion in the first quarter of 2026. Business Outlook

For the third quarter of 2026, the Company expects:

Deliveries of vehicles to be between 95,000 and 100,000 vehicles, representing a year-over-year increase of 1.9% to 7.3%.Total revenues to be between RMB26.6 billion (US$3.9 billion) and RMB28.0 billion (US$4.1 billion), representing a year-over-year change of -2.8% to +2.3%. This business outlook reflects the Company’s current and preliminary views on its business situation and market conditions, which are subject to change.

Conference Call

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, August 26, 2026 (8:00 p.m. Beijing/Hong Kong Time on August 26, 2026) to discuss financial results and answer questions from investors and analysts.

For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.

Participant Online Registration: https://s1.c-conf.com/diamondpass/10056444-vrf1u8.html

A replay of the conference call will be accessible through September 2, 2026, by dialing the following numbers:

United States:+1-855-883-1031Chinese Mainland:+86-400-1209-216Hong Kong, China:+852-800-930-639International:+61-7-3107-6325Replay PIN:10056444   Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.lixiang.com.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/(loss) from operations, non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/(loss) per share attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate Information

This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

About Li Auto Inc.

Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Be Proactive, Change the World. Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. It offers high-tech flagship family MPVs, Li L series extended-range electric SUVs, and Li i series battery electric SUVs. The Company will continue to expand its product lineup to target a broader user base.

For more information, please visit: https://ir.lixiang.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles and high-power charging battery electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Li Auto Inc.
Investor Relations
Email: [email protected]

Christensen Advisory
Tel: +86-10-5900-1548
Email: [email protected]

Li Auto Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

   For the Three Months Ended June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2026 RMB RMB RMB US$Revenues:       Vehicle sales28,885,133 21,533,182 24,066,488 3,546,961Other sales and services1,360,480 1,449,729 1,600,402 235,870Total revenues30,245,613  22,982,911  25,666,890 3,782,831Cost of sales:       Vehicle sales(23,273,292) (20,225,885) (21,795,419) (3,212,247)Other sales and services(905,352) (948,981) (1,035,416) (152,601)Total cost of sales(24,178,644)  (21,174,866)  (22,830,835)  (3,364,848) Gross profit6,066,969  1,808,045 2,836,055 417,983Operating expenses:       Research and development expenses(2,810,170) (2,722,159) (2,775,633) (409,078)Selling, general and administrative expenses(2,717,761) (2,049,203) (2,278,044) (335,742)Other operating income/(expense), net287,980 (35,473) (83,228) (12,266)Total operating expenses(5,239,951)  (4,806,835)  (5,136,905)  (757,086) Income/(Loss) from operations827,018  (2,998,790) (2,300,850) (339,103)Other (expense)/income:       Interest expense(49,776) (40,658) (116,248) (17,133)Interest income and investment income, net496,454 394,020 455,033 67,064Others, net15,288 44,248 13,199 1,946Income/(Loss) before income tax 1,288,984  (2,601,180) (1,948,866) (287,226)Income tax (expense)/benefit(192,048) 325,148 243,609 35,904Net income/(loss)1,096,936  (2,276,032) (1,705,257) (251,322)Less: Net income/(loss) attributable to noncontrolling interests4,365 13,499 (1,076) (159)Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.1,092,571  (2,289,531) (1,704,181) (251,163)        Net income/(loss)1,096,936  (2,276,032) (1,705,257) (251,322)Other comprehensive loss, net of tax       Foreign currency translation adjustment, net of nil tax(173,612) (161,404) (273,671) (40,334)Total other comprehensive loss, net of tax(173,612)  (161,404)  (273,671)  (40,334) Total comprehensive income/(loss)923,324  (2,437,436) (1,978,928) (291,656)Less: Comprehensive income/(loss) attributable to noncontrolling interests4,365 13,499 (1,076) (159)Comprehensive income/(loss) attributable to ordinary shareholders of Li Auto Inc.918,959  (2,450,935) (1,977,852) (291,497)Weighted average number of ADSs       Basic1,005,986,033 1,013,814,503 1,007,098,886 1,007,098,886Diluted1,071,261,046 1,013,814,503 1,007,098,886 1,007,098,886Net earnings/(loss) per ADS attributable to ordinary shareholders       Basic1.09 (2.26) (1.69) (0.25)Diluted1.03 (2.26) (1.69) (0.25)Weighted average number of ordinary shares       Basic2,011,972,066 2,027,629,006 2,014,197,771 2,014,197,771Diluted2,142,522,091 2,027,629,006 2,014,197,771 2,014,197,771Net earnings/(loss) per share attributable to ordinary shareholders       Basic0.54 (1.13) (0.85) (0.12)Diluted0.51 (1.13) (0.85) (0.12) Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets(All amounts in thousands)

         As of   December 31,
2025 June 30,
2026 June 30,
2026 RMB RMB US$ASSETS     Current assets:     Cash and cash equivalents56,691,765 40,117,782 5,912,629Restricted cash216,314 14,782 2,179Time deposits and short-term investments44,331,407 45,474,274 6,702,079Trade receivable119,823 206,592 30,448Inventories8,752,439 8,333,701 1,228,236Prepayments and other current assets5,174,246 4,322,856 637,110Total current assets115,285,994 98,469,987 14,512,681Non-current assets:     Long-term investments848,672 2,976,994 438,755Property, plant and equipment, net22,774,938 22,893,313 3,374,057Operating lease right-of-use assets, net9,099,313 7,890,346 1,162,893Intangible assets, net1,191,974 1,165,561 171,782Goodwill5,484 5,484 808Deferred tax assets3,334,206 3,755,111 553,435Other non-current assets1,755,237 3,522,804 519,197Total non-current assets39,009,824  42,209,613 6,220,927Total assets154,295,818  140,679,600 20,733,608LIABILITIES AND EQUITY     Current liabilities:     Short-term borrowings6,217,745 286,205 42,181Trade and notes payable40,579,219 38,756,080 5,711,939Amounts due to related parties26,644 452,813 66,736Deferred revenue, current1,621,429 1,208,610 178,127Operating lease liabilities, current1,690,356 1,572,211 231,715Accruals and other current liabilities13,412,260 12,201,637 1,798,301Total current liabilities63,547,653  54,477,556 8,028,999Non-current liabilities:     Long-term borrowings3,299,203 6,863,999 1,011,628Deferred revenue, non-current624,734 666,287 98,199Operating lease liabilities, non-current6,258,957 5,620,164 828,310Finance lease liabilities, non-current348,506 349,322 51,484Deferred tax liabilities691,652 548,423 80,828Other non-current liabilities6,385,370 6,192,234 912,622Total non-current liabilities17,608,422 20,240,429 2,983,071Total liabilities81,156,075  74,717,985 11,012,070Total Li Auto Inc. shareholders’ equity72,619,255  65,428,704 9,642,997Noncontrolling interests520,488 532,911 78,541Total shareholders’ equity73,139,743  65,961,615 9,721,538Total liabilities and shareholders’ equity154,295,818  140,679,600 20,733,608 Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows(All amounts in thousands)

   For the Three Months Ended June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2026 RMB RMB RMB US$Net cash (used in)/provided by operating activities(3,036,219) (6,090,994) 15,025 2,214Net cash (used in)/provided by investing activities(226,724) (8,181,439) 2,919,510 430,283Net cash (used in)/provided by financing activities(70,037) 337,303 (5,487,924) (808,820)Effect of exchange rate changes on cash, cash equivalents and restricted cash(108,393) (102,382) (184,614) (27,209)Net change in cash, cash equivalents and restricted cash(3,441,373)  (14,037,512)  (2,738,003)  (403,532) Cash, cash equivalents and restricted cash at beginning of period53,238,339 56,908,079 42,870,567 6,318,340Cash, cash equivalents and restricted cash at end of period49,796,966 42,870,567  40,132,564 5,914,808        Net cash (used in)/provided by operating activities(3,036,219) (6,090,994) 15,025 2,214Capital expenditures(805,544) (1,297,326) (1,315,790) (193,923)Free cash flow (non-GAAP)(3,841,763) (7,388,320) (1,300,765) (191,709) Li Auto Inc.
Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)

   For the Three Months Ended June 30,
2025 March 31,
2026 June 30,
2026 June 30,
2026 RMB RMB RMB US$Cost of sales(24,178,644) (21,174,866) (22,830,835) (3,364,848)Share-based compensation expenses8,135 8,730 8,039 1,185Non-GAAP cost of sales(24,170,509)  (21,166,136)  (22,822,796)  (3,363,663)         Research and development expenses(2,810,170) (2,722,159) (2,775,633) (409,078)Share-based compensation expenses236,668 128,160 126,933 18,708Non-GAAP research and development expenses(2,573,502)  (2,593,999)  (2,648,700)  (390,370)         Selling, general and administrative expenses(2,717,761) (2,049,203) (2,278,044) (335,742)Share-based compensation expenses126,413 31,156 71,759 10,576Non-GAAP selling, general and administrative expenses(2,591,348)  (2,018,047)  (2,206,285)  (325,166)         Income/(Loss) from operations827,018 (2,998,790) (2,300,850) (339,103)Share-based compensation expenses371,216 168,046 206,731 30,469Non-GAAP income/(loss) from operations1,198,234 (2,830,744) (2,094,119) (308,634)        Net income/(loss)1,096,936 (2,276,032) (1,705,257) (251,322)Share-based compensation expenses371,216 168,046 206,731 30,469Non-GAAP net income/(loss)81,468,152 (2,107,986) (1,498,526) (220,853)         Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.1,092,571 (2,289,531) (1,704,181) (251,163)Share-based compensation expenses371,216 168,046 206,731 30,469Non-GAAP net income/(loss) attributable to ordinary shareholders of Li Auto Inc.1,463,787 (2,121,485) (1,497,450) (220,694)        Weighted average number of ADSs       Basic1,005,986,033 1,013,814,503 1,007,098,886 1,007,098,886Diluted1,071,261,046 1,013,814,503 1,007,098,886 1,007,098,886Non-GAAP net earnings/(loss) per ADS attributable to ordinary shareholders       Basic1.46 (2.09) (1.49) (0.22)Diluted1.37 (2.09) (1.49) (0.22)Weighted average number of ordinary shares       Basic2,011,972,066 2,027,629,006 2,014,197,771 2,014,197,771Diluted2,142,522,091 2,027,629,006 2,014,197,771 2,014,197,771Non-GAAP net earnings/(loss) per share attributable to ordinary shareholders       Basic0.73 (1.05) (0.74) (0.11)Diluted0.69 (1.05) (0.74) (0.11)         ______________________________
1   All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board.

2   Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

3   The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.

4   Each ADS represents two Class A ordinary shares.

5   Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.

6   Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented.

7   Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments.

8   Non-GAAP items have no tax impact for all the periods presented.

Key Takeaways The Trade Desk is integrating Gracenote's content metadata and taxonomy into its CTV buying platform.Advertisers can use detailed programming data with TTD's other signals to build curated inventory strategies.CTV growth topped 50% year over year in EMEA and APAC, while video was a low-50% share of TTD's business. The Trade Desk (TTD - Free Report) is strengthening its connected TV (CTV) advertising proposition through a new partnership with Gracenote, Nielsen’s content intelligence business. The collaboration brings Gracenote’s program-level content metadata, identifiers and standardized taxonomy directly into TTD’s demand-side platform (DSP), potentially giving advertisers much greater precision and transparency when buying CTV inventory.

Gracenote provides content IDs, metadata and standardized taxonomy that can help identify and categorize programming more consistently. Through the integration, advertisers using The Trade Desk will be able to incorporate this information into their CTV buying strategies. Advertisers could use more detailed programming characteristics to develop a curated inventory strategy, creating a more contextual approach to CTV advertising. Advertisers can also combine Gracenote's programming information with other signals available through TTD.

For The Trade Desk, the partnership strengthens its position in the increasingly competitive CTV advertising market. The company already provides advertisers with extensive capabilities for programmatic buying. By incorporating standardized show-level information, TTD can give buyers another signal to use when evaluating inventory. That could make its platform more attractive to advertisers seeking television-like contextual precision in a programmatic buying environment.

Total revenue reached $715 million in the second quarter, up 3% year over year. Double-digit growth in CTV and audio continued in the second quarter, with video including CTV—representing a low-50% share of TTD’s business. Moreover, TTD’s investments in EMEA and APAC are paying off, with CTV growth exceeding 50% year over year in both regions during the quarter.

Could CTV Growth Strengthen TTD’s Competitive Position?PubMatic, Inc.’s (PUBM - Free Report) disciplined investments have diversified its business, with CTV, mobile app and emerging revenues making up about 60% of second-quarter sales and driving profitable double-digit growth. CTV growth was led by the Americas, up 25% year over year, while global CTV revenue rose 13% and accounted for about 20% of total revenue in the quarter. Its growth in CTV and mobile apps is strengthening its data signals, while its AI-native infrastructure and NVIDIA partnership enable smarter, real-time ad decisioning. Driven by CTV, mobile app and emerging revenues, third-quarter revenue is guided at $75 million–$77 million.

Magnite, Inc.’s (MGNI - Free Report) growth is driven by strong CTV and DV+ demand, with contribution ex-TAC from CTV up 36% year over year and accounting for 51% of total contribution ex-TAC in the second quarter. Growth accelerated across major media owners, while top 10 CTV accounts grew in the mid-to-high 40% range, highlighting strong momentum as programmatic becomes a preferred way to buy streaming TV. SpringServe remains central to MGNI’s CTV strategy, powering monetization beyond its original role as an ad server. SpringServe scored a major win with Samsung, powering premium smart TV home-screen ads and bringing the inventory to programmatic buying through MGNI’s DSP ecosystem.

TTD’s Price Performance, Valuation and EstimatesShares of TTD have declined 29.7% in the past month against the Zacks Internet Services industry and S&P 500 composites’ rise of 1.6% and 5.4%, respectively.

Image Source: Zacks Investment Research

TTD seems attractive, as suggested by the Value Score of B. From a valuation standpoint, TTD trades at a forward price-to-earnings of 26.78X, higher than the industry’s average of 20.32X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TTD’s earnings has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

TTD currently carries a Zacks Rank #4 (Sell).

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

COLUMBUS, Ohio, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Root (NASDAQ: ROOT), the leading technology company in car insurance, today announced new rates that will reduce auto insurance premiums for Florida customers by 15% on average, with some policyholders seeing even more significant decreases.

Root has proudly served Florida drivers since 2022 and today serves more than 52,000 policyholders in the state, with nearly all indicated to see lower premiums as a result of the rate reductions. Eligible customers are expected to save about $400 per year on average, representing approximately $21 million in annualized savings.

Thanks to historic legislative reforms enacted in 2022 and 2023, Florida drivers are now seeing a more stable market and tangible benefits through lower insurance rates. Root’s 15% base rate reduction is a reflection of this progress. These reforms, spearheaded by Florida’s Governor, the Office of Insurance Regulation, and the Florida Legislature, address litigation-related costs that have historically contributed to higher insurance premiums. As costs decline, insurers can more accurately project future claims expenses and price coverage accordingly, creating opportunities to pass those savings on to consumers.

“We’re excited to reduce base rates by 15% for Florida customers and put money back in the hands of drivers,” said Alex Timm, Founder and CEO of Root. “Florida’s insurance market continues to improve as costs continue to decline under the reforms, and Root’s ability to accurately price risk allows us to reflect those improvements in what our customers pay.”

Root was built on the belief that car insurance should be priced more accurately and fairly based on individual risk. As Florida’s reforms help reduce costs and bring greater predictability to the insurance market, Root can translate those improvements into more competitive rates for safe drivers. Root remains focused on delivering value to Florida consumers through precise pricing, disciplined underwriting, and a continued commitment to rewarding safe driving.

About Root, Inc.

Root Insurance is a technology company revolutionizing car insurance through data science and automation. Founded in 2015 and based in Columbus, Ohio, Root, Inc. (NASDAQ: ROOT) is the parent company of Root Insurance Company. The Root app has reached more than 18 million downloads and has analyzed more than 37 billion miles of driving data to deliver personalized, easy, and fair pricing. For more information, visit root.com.

Contacts
Media:
[email protected]

Root. Inc, Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding Root, Inc. These forward-looking statements relate to, among other things, expectations about our future business results and the success of our business in Florida. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond the company's control and are difficult to predict. We have based our forward-looking statements on our current expectations, estimates, and projections about our industry and our company. We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we have included in Root's Form 10-K for the year ended Dec. 31, 2025, and other SEC filings, cautionary language identifying important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements. Copies of Root's Form 10-K and other SEC filings are available on the SEC's website, Root's website at ir.joinroot.com/investor-relations, or by contacting Root's Investor Relations office.

Key Takeaways Affirm returned to Australia by launching Shop Pay Installments with Shopify.The rollout gives Affirm access to Shopify's Australian merchants and is expected to add GMV and revenue.Affirm ended fiscal 2026 with GMV up 36%, revenue up 33% and active merchants up 51%. Affirm Holdings, Inc. (AFRM - Free Report) recently expanded its partnership with Shopify by launching Shop Pay Installments in Australia. The service is powered exclusively by Affirm and sits inside Shopify’s Shop Pay checkout. Affirm makes a real-time underwriting decision on every transaction and does not charge late fees, account fees or compounding interest. The launch marks the company’s return to Australia after it wound down operations there in 2023 as part of a broader effort to focus on growth and profitability.

The re-entry gives Affirm access to Shopify’s Australian merchant base while advancing a broader global partnership already spanning the United States, Canada and the U.K., with further expansion planned across Western Europe. AFRM can help merchants boost conversions and basket sizes by making larger purchases easier for customers to manage.

Shop Pay has more than 250 million buyers globally, while over 90% of Affirm purchases in North America come from repeat customers. That creates a large channel and strengthens Affirm’s international expansion opportunity over time.

The Australian rollout is expected to add GMV and transaction-driven revenue as adoption builds, while also widening Affirm’s merchant network. In fourth quarter fiscal 2026, GMV jumped 36% to $14.1 billion, revenues rose 33% to $1.17 billion and revenue less transaction costs increased 39% to $589 million.

Active consumers climbed 21% to 27.8 million, while transaction per active consumer grew 20%, giving Affirm a larger base for international growth and recurring transaction volume across new markets over time. Also, active merchant count surged 51% to 571,000 as of June 30, 2026.

How Are Peers Placed?Affirm is going back to a competitive Australian BNPL market, where several companies already have established positions. PayPal Holdings Inc. (PYPL - Free Report) has considerable reach through Pay in 4. PayPal says the product is available across more than 9 million active Australian PayPal accounts, while its 2025 survey showed usage among 51% of Australian BNPL users, up from 45% a year earlier.

Meanwhile, Block, Inc. (XYZ - Free Report) is one of the strongest competitors through Afterpay, which originated in Australia. Afterpay currently cites about 4.4 million active consumers in Australia and New Zealand. PayPal’s 2025 Australian survey found that 78% of Australian BNPL users had used Afterpay in the prior six months.

Affirm’s Price Performance, Valuation and EstimatesShares of Affirm have gained 4.1% year to date, outperforming the broader industry but trailing the S&P 500 Index.

Affirm’s YTD Price Performance Image Source: Zacks Investment Research

From a valuation standpoint, Affirm trades at a forward price-to-earnings ratio of 41.42X, up from the industry average of 27.93X. AFRM carries a Value Score of D.

It beat earnings estimates in each of the past four quarters, with an average surprise of 379.4%.

The stock 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 Cloudflare added nearly 2 million developers in Q2, bringing its platform total above 7.4 million.Workers is gaining enterprise traction through pool-of-funds contracts and growing customer usage.AI agent adoption could boost Workers as customers build, deploy and scale AI agents on the platform. Cloudflare’s (NET - Free Report) Workers developer platform is becoming an increasingly important part of its growth strategy. During the second quarter of 2026, the company said its Workers platform continued to drive new customer adoption. Cloudflare ended the second quarter with more than 7.4 million developers on its platform, adding nearly two million developers in the second quarter alone. This was more than the 1.5 million developers added during all of 2025.

Cloudflare’s Workers developer platform is also gaining traction among enterprise customers. Cloudflare said more customers are including Workers in pool-of-funds contracts, allowing them to use the developer platform along with services such as Zero Trust and reverse proxy. For example, an APAC technology company signed a $4 million pool-of-funds contract for Workers after previously signing an $8.7 million Application Services contract. Another technology company signed a $6 million Workers contract to support its AI agent capabilities.

Cloudflare said the Workers platform has moved beyond being mainly an adoption-focused product and has become a meaningful contributor to revenues. The company also noted that the Workers platform is driving consumption as customers use it alongside its security and networking products. This creates an opportunity for Cloudflare to expand its relationships with existing customers as their developer teams increase their use of the platform.

The growing use of AI agents could provide another boost to the Workers Platform, which is designed to help customers build, deploy and scale AI agents. With AI workloads increasing and more developers joining the platform, Workers could become a key contributor to Cloudflare’s overall growth. The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 32.3% and 28.5%, respectively.

Cloudflare Faces Tough CompetitionCompetitors like Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are also gaining ground through platform expansion and AI innovation.

Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust and SASE continue to support its long-term growth potential. In the third quarter of fiscal 2026, SASE was Palo Alto Networks’ fastest-growing segment, with SASE Annual recurring revenues up 40% year over year. PANW's SASE business is benefiting from strong customer demand for cloud-delivered networking and security solutions as enterprises continue to support hybrid work environments and secure access to cloud applications.

Zscaler is seeing strong adoption of its Zero Trust Everywhere strategy, which is helping the company expand beyond its traditional user security offerings. The strategy combines security for users, cloud workloads and branch locations on a single platform. The company ended the third quarter of fiscal 2026 with more than 700 Zero Trust Everywhere enterprises, up from more than 550 in the previous quarter. As more customers adopt multiple products across the platform, Zero Trust Everywhere could help Zscaler increase customer spending, win larger deals and support long-term growth.

NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 40.7% in the year-to-date period against the Zacks Internet – Software industry’s decline of 4.5%.

NET YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, NET trades at a forward price-to-sales ratio of 28.87, significantly higher than the industry’s average of 3.91. The Zacks Value Score of F suggests that NET stock is overvalued.

NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, revised up by a penny over the past seven days, indicating a 35.5% increase from the previous year.

Image Source: Zacks Investment Research

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

SummaryFortinet stock has surged over 100% in 2026, driven by robust AI-driven cybersecurity demand and strong product revenue growth.FTNT’s free cash flow, billings, and deferred revenue are strong, with gross margins near 80% and a clean balance sheet supporting aggressive buybacks.Valuation models (FCFF, FCFE, residual income) converge on an intrinsic value range of $120–150 per share, below the current ~$160 price.I rate FTNT a Hold, as current valuation embeds optimistic growth and return assumptions; a pullback or evidence of sustained high growth would increase my conviction.Editor's note: Seeking Alpha is proud to welcome KRM Insights as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.

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

BUG is an ETF that has 8.14% allocation to FTNT. I hold long-term call options in my IRA.

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