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LISRAYA represents the first major therapeutic innovation in decades for adults with dermatomyositis (DM), a debilitating systemic autoimmune diseaseLISRAYA is a once-daily pill that directly targets key immune pathways implicated in dermatomyositis pathogenesisLISRAYA demonstrated robust efficacy on multiple measures of DM disease activity, accompanied by substantial steroid-sparing benefits, in the largest dermatomyositis clinical trial ever conductedLISRAYA is available immediately in the U.S.Eligible patients may pay as little as $0 per month through the LISRAYA My Compass Support program.

DURHAM, N.C., Aug. 27, 2026 (GLOBE NEWSWIRE) -- Priovant Therapeutics today announced that the U.S. Food and Drug Administration (FDA) has approved LISRAYA™ (brepocitinib) 30 mg for the treatment of adults with dermatomyositis (DM). LISRAYA is a pill taken once daily.

DM is a rare systemic autoimmune disease characterized by progressive muscle weakness and extensive, painful, and pruritic skin lesions. DM significantly impairs patients’ quality of life through physical disability, pain from both muscle and skin disease, cutaneous disfigurement, skin sensitivity to light and touch, and high levels of dependency on chronic high-dose steroids.

LISRAYA, a first-in-class TYK2/JAK1 inhibitor, is the first and only targeted therapy approved for dermatomyositis. LISRAYA is proven to provide a wide array of efficacy benefits for adult DM patients, including improvements in skin disease, muscle strength, physical function, and overall disease burden, alongside substantial steroid-sparing benefit. LISRAYA can be prescribed by healthcare professionals in the United States effective immediately. Prescriptions can be submitted at lisrayahcp.com/enroll. Full prescribing information is available at lisrayahcp.com/pi.

“Dermatomyositis affects nearly every aspect of a patient’s life, causing physical disability, disfiguring skin disease, pain, itch, and a profound loss of independence and sense of self,” said Ruth Ann Vleugels, MD, MPH, MBA, Heidi and Scott C. Schuster Distinguished Chair in Dermatology, Founding Director of the Autoimmune Skin Disease Center and Connective Tissue Disease Clinics at Mass General Brigham, and Professor of Dermatology at Harvard Medical School.  “For many decades, the treatment of dermatomyositis has relied on chronic steroids, non-specific immunomodulators, and intravenous immunoglobulin—therapies not targeted to the underlying disease pathobiology. The approval of LISRAYA marks a turning point for patients living with dermatomyositis. For the first time, I am thrilled to be able to offer my patients a targeted, once-daily oral medicine that delivers meaningful benefit across muscle, skin, and overall disease activity while simultaneously reducing reliance on systemic corticosteroids.” 

LISRAYA’s approval follows the landmark Phase 3 VALOR trial, the largest DM trial ever conducted.

In the VALOR trial, benefits on the primary endpoint, the myositis Total Improvement Score (a composite measure designed to capture improvement across multiple disease domains), were seen as early as Week 4, increased over time, and were sustained to the end of the 52-week study. Most patients treated with LISRAYA were able to achieve both moderate or better improvement on the Total Improvement Score and minimal or no steroid use by the end of the study (55%, compared to 30% on placebo), underscoring LISRAYA’s ability to simultaneously improve disease symptoms and reduce steroid dependency. Among patients receiving LISRAYA who were taking ≥7.5 mg/day (prednisone-equivalent) of oral corticosteroids at baseline, 62% tapered to minimal or no steroid use (≤2.5 mg/day) by the end of the 52-week study, compared with 38% on placebo; 45% came off corticosteroids entirely, compared with 29% on placebo.

LISRAYA also demonstrated benefit on independent measures of skin disease and muscle strength, and, critically, on endpoints that directly capture patients’ own experience living with dermatomyositis. When asked to rate the overall activity of their disease, patients receiving LISRAYA reported more than four times as much improvement as patients on placebo. On a measure of everyday function – including pain and core activities of daily living such as getting dressed, climbing stairs, and running errands – patients treated with LISRAYA achieved clinically meaningful improvement, while those receiving placebo worsened, highlighting LISRAYA’s ability to restore greater independence and personal agency to DM patients’ lives.

The most common adverse reactions for patients on LISRAYA in the VALOR trial were upper respiratory tract infection, headache, fatigue, urinary tract infection, nausea, bronchitis, arthralgia, diarrhea, back pain, fall, influenza, and acne. See important LISRAYA safety information below and full safety information, including boxed warning, at lisrayahcp.com/pi.

Primary results from the VALOR trial were published in the New England Journal of Medicine in March 2026, with additional skin-specific secondary endpoints published in JAMA Dermatology in August 2026.

LISRAYA is indicated for the treatment of dermatomyositis in adults. It can be used for adult DM patients with no restrictions based on their level of disease activity, clinical presentation, or prior treatment experience. LISRAYA can be used as an alternative therapy or add-on therapy to non-targeted DM treatments used today, depending on specific patient needs. Notably, the Phase 3 VALOR study evaluated the efficacy and safety of LISRAYA across patients on a wide array of different combinations of background therapies, including no background therapy.

Priovant is committed to helping patients access LISRAYA as quickly as possible. LISRAYA is available through a limited distribution network of specialty pharmacies. Patients can enroll in LISRAYA My Compass Support, which offers personalized assistance from a dedicated Patient Access Liaison, including help with insurance coverage, financial assistance programs, and ongoing support throughout the treatment journey. Through My Compass Support, eligible patients may pay as little as $0 per month for LISRAYA. Patients can enroll in My Compass Support at lisraya.com/enrollment.

“Today’s approval of LISRAYA marks a historic moment for the dermatomyositis community and reflects years of extraordinary work and sacrifice by the team at Priovant, our partners, and, above all, the investigators and patients who participated in the brepocitinib development program,” said Ben Zimmer, Chief Executive Officer of Priovant. “I am thrilled that adults with dermatomyositis finally have a fundamentally new treatment option – one specifically designed to target the biology of their disease and shown to meaningfully improve how patients feel and function in their daily lives.”    

FDA approval of LISRAYA follows the agency’s prior granting of Priority Review and Orphan Drug Designation. Priority Review is reserved for medicines that, if approved, would provide significant improvements in safety or efficacy for treatment of a serious condition.

LISRAYA IMPORTANT SAFETY INFORMATION and INDICATION AND USAGE

WARNING: SERIOUS INFECTIONS, MORTALITY, MALIGNANCY, MAJOR ADVERSE
CARDIOVASCULAR EVENTS (MACE), and THROMBOSIS

INDICATIONS AND USAGE
LISRAYA (brepocitinib) is indicated for the treatment of adults with dermatomyositis (DM).

Limitations of Use

Not recommended for use in combination with other JAK inhibitors, other TYK2 inhibitors, or biologic DMARDs.

WARNINGS and PRECAUTIONS:
Serious infections. Patients treated with LISRAYA are at increased risk of developing serious bacterial, fungal, viral, and opportunistic infections that may lead to hospitalization or death.
Reported infections with use of Janus kinase (JAK) inhibitors, including LISRAYA:

Active tuberculosis (TB), which may present with pulmonary or extrapulmonary disease. Evaluate and test patients for latent and active TB infection prior to and during LISRAYA treatment. If positive, treat for TB. Monitor all patients for active TB during treatment including patients who tested negative for a latent TB infection prior to LISRAYA treatment.Invasive fungal infections. Patients with invasive fungal infections may present with disseminated, rather than localized, disease.Bacterial, viral (including herpes zoster), and other infections due to opportunistic pathogens.
Avoid use of LISRAYA in patients with an active, serious infection, including localized infections. Consider the risks and benefits of LISRAYA in patients with chronic or recurrent infection prior to initiating treatment. Closely monitor patients for signs and symptoms of infection during and after treatment with LISRAYA. If a serious infection occurs, interrupt LISRAYA treatment until the infection resolves or is adequately treated.

Mortality. A higher rate of all-cause mortality, including sudden cardiovascular death, was observed with another Janus kinase (JAK) inhibitor when compared to tumor necrosis factor (TNF) blockers in patients with rheumatoid arthritis (RA) 50 years of age and older with at least one cardiovascular risk factor. LISRAYA is not approved for use in patients with RA.

Malignancy. Malignancies have occurred in patients treated with LISRAYA. A higher rate of malignancies (excluding non-melanoma skin cancer), lymphomas, and lung cancers was observed with another JAK inhibitor when compared to TNF blockers in patients with RA. LISRAYA is not approved for use in patients with RA. Patients who are current or past smokers are at additional increased risk.

Major Adverse Cardiovascular Events (MACE). Major adverse cardiovascular events (MACE) (defined as cardiovascular death, myocardial infarction, and stroke) have occurred in patients treated with LISRAYA. A higher rate of MACE was observed with another JAK inhibitor when compared to TNF blockers in patients with RA 50 years of age and older with at least one cardiovascular risk factor. LISRAYA is not approved for use in patients with RA. Patients who are current or past smokers are at additional increased risk. Discontinue LISRAYA in patients who have experienced a myocardial infarction or stroke.

Thrombosis. Thromboses, including deep venous thrombosis, pulmonary embolism, and arterial thrombosis, have occurred in patients treated for inflammatory conditions with JAK inhibitors, including LISRAYA. Many of these adverse reactions were serious and some resulted in death. A higher rate of thromboses was observed with another JAK inhibitor when compared to TNF blockers in patients with RA 50 years of age and older with at least one cardiovascular risk factor. LISRAYA is not approved for use in patients with RA. Avoid LISRAYA in patients who may be at risk of thrombosis. If symptoms of thrombosis occur, discontinue LISRAYA, promptly evaluate, and appropriately treat.

Hypersensitivity. LISRAYA is contraindicated in patients with known hypersensitivity to brepocitinib or any of its excipients. Hypersensitivity reactions were reported in patients receiving LISRAYA. Some events were serious.

Gastrointestinal Perforations. Gastrointestinal perforation has been reported in patients treated with JAK inhibitors, including LISRAYA. Monitor LISRAYA-treated patients who may be at risk for gastrointestinal perforation.

Hypoglycemia in Patients with Diabetes. LISRAYA may cause hypoglycemia in patients with diabetes. Hypoglycemia, including severe hypoglycemia, has been reported following initiation of JAK inhibitors in patients with diabetes. During treatment with LISRAYA, consider increased monitoring of blood glucose as clinically indicated in patients with diabetes.

Laboratory Abnormalities. LISRAYA has been associated with lab abnormalities including neutropenia, lymphopenia, anemia, increases in lipid parameters, and liver enzyme elevations.

Immunizations. Avoid use of live vaccines during or immediately prior to LISRAYA therapy initiation. Prior to initiating LISRAYA treatment, update immunizations, including prophylactic varicella zoster or herpes zoster vaccinations, according to current immunization guidelines.

Embryofetal Toxicity. Based on findings in animal studies, LISRAYA may cause fetal harm when administered to a pregnant woman. Verify the pregnancy status of females of reproductive potential prior to starting treatment. Advise pregnant women and females of reproductive potential of the potential risk to the fetus. Advise females of reproductive potential to use effective contraception during treatment with LISRAYA and for 3 days following the last dose.

ADVERSE REACTIONS
The most common adverse reactions occurring in ≥5% of DM subjects and ≥2% greater than placebo were upper respiratory tract infection, headache, fatigue, urinary tract infection, nausea, bronchitis, arthralgia, diarrhea, back pain, fall, influenza, and acne.

SPECIAL POPULATIONS
Pregnancy. Based on findings in animal studies, LISRAYA may cause fetal harm when administered to a pregnant woman. Available data from LISRAYA use in pregnant women are insufficient to establish a drug-associated risk of major birth defects, miscarriage or adverse maternal or fetal outcomes.

Lactation. There are no data on the presence of brepocitinib in human milk, the effects on the breastfed infant, or the effects on milk production.

Hepatic Impairment. LISRAYA is not recommended in patients with severe hepatic impairment.

Renal Impairment. LISRAYA is not recommended in patients with severe renal impairment.

Please see the Full Prescribing Information, including BOXED WARNING, and Medication Guide.

About Priovant

Priovant Therapeutics is a biotechnology company dedicated to developing and commercializing novel therapies for autoimmune diseases with high morbidity and few available treatment options. The company’s commercial product, LISRAYA™ (brepocitinib) is the first and only targeted oral therapy approved for the treatment of adults with dermatomyositis. Brepocitinib, a first-in-class TYK2/JAK1 inhibitor, is also being evaluated in a Phase 3 program in non-infectious uveitis, a Phase 3 program in cutaneous sarcoidosis, and a Phase 2b/3 program in lichen planopilaris. Priovant Therapeutics is a Roivant (Nasdaq: ROIV) company.

Contacts:

Media, investors, or other general inquiries: Stephanie Lee at [email protected] dermatomyositis patients: 1-888-736-9788 or [email protected] © 2026 Priovant Therapeutics, Inc. All rights reserved. LISRAYA™ is the trademark of Priovant Therapeutics, Inc.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4c9c8a80-2004-4328-82df-68a3d9e233f1

Key Takeaways SEZL to launch Sezzle Send in August, letting users transfer money by phone number with 2 payment options.Over 100,000 users in waitlist, while recipients can receive funds without being existing Sezzle users. Management's 2026 guidance assumes zero contribution from Sezzle Send, leaving upside dependent on adoption. Sezzle Inc. (SEZL - Free Report) is pushing beyond checkout financing with Sezzle Send, a peer-to-peer money transfer product scheduled for an August launch. Users can send money by phone number and choose Pay-in-Full or Pay-in-5, while recipients receive the full amount upfront. Management sees each transfer as a potential introduction to Sezzle, broadening its role in everyday financial activity.

The growth angle is clear. Sezzle said more than 100,000 users had already joined the Send waitlist. This is because recipients do not need to be existing Sezzle users, the product could create a low-cost acquisition channel driven by customers themselves. Anywhere subscribers also avoid the Pay-in-5 service fee, which could support subscriber conversion.

That matters because Sezzle already has strong customer momentum. Active subscribers reached 854,000 in the second quarter, up 76.4% year over year, while average quarterly purchase frequency rose to a record 7.2 times from 6.1 times. MODS increased 31.3% to 982,000, giving Send a broader potential customer reach.

Sezzle also has room to test the economics. Second-quarter revenues rose 51.7% to $149.7 million, GMV increased 37.9% to $1.3 billion and net income reached $40.8 million. Marketing spend climbed to $19.4 million, yet management said customer acquisition payback remained under six months.

Still, Send is not yet reflected into the financial outlook. Management said 2026 guidance assumes zero contribution from Sezzle Send and little impact from SezzleCash. Sezzle expects 35% revenue growth for the year, adjusted net income of $185 million and adjusted earnings per share (EPS) of $5.25, leaving upside dependent on adoption.

How Are Others Faring in the Payments Space?Klarna Group plc (KLAR - Free Report) launched instant peer-to-peer payments across 13 European countries in January 2026, allowing users to send money to friends and family using phone numbers, emails, QR codes or saved contacts. The feature expands Klarna beyond BNPL toward everyday digital banking and initially supports transfers between Klarna users.

Block’s (XYZ - Free Report) Cash App expanded pay-over-time financing beyond merchant checkout in April 2026, allowing eligible customers to convert recent peer-to-peer transfers to friends and family into short-term installment plans. The feature extends pay-over-time flexibility to everyday money movement, with P2P transfers of $25 or more made within the previous 30 days qualifying for the plan.

SEZL’s Price Performance, Valuation & EstimatesShares of Sezzle have outperformed in the past six months compared with the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, Sezzle’s shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 20.12X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 19.62X.

Image Source: Zacks Investment Research

Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.

Image Source: Zacks Investment Research

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

Key Takeaways GEV's Q2 orders surged 88% organically to $24.2 billion, lifting backlog to about $176 billion.Power orders jumped 134% organically, with gas equipment backlog and reservations reaching 116 GW.Data-center orders topped $5 billion in the first half of 2026, more than double the 2025 total. GE Vernova Inc. (GEV - Free Report) is increasingly becoming a key beneficiary of the structural growth in global electricity demand. The growth is being driven by AI and data centers, industrial electrification, grid modernization and the need for additional reliable generation capacity. GEV’s second-quarter results show that this is translating into significant orders and backlog growth.

The company generated $24.2 billion of orders in second quarter 2026, up 88% organically, while revenues increased 22% to $11.1 billion. Backlog reached approximately $176 billion, up $13 billion sequentially. Power and Electrification were the primary drivers of this momentum.

GE Vernova’s Power segment generated orders worth $16.7 billion in the second quarter, up 134% organically. The company signed 20 gigawatts (GW) of new gas equipment contracts during the quarter, while total gas equipment backlog and slot reservation agreements increased from 100 GW to 116 GW. Management expects this figure to reach at least 125 GW by the end of 2026.

Data centers are an important part of this demand. AI infrastructure requires enormous quantities of reliable electricity, and grid constraints are making additional generation capacity increasingly valuable. GEV is expanding annual gas turbine production toward 30 GW by 2030 to meet this demand.

GE Vernova’s Electrification segment reported orders worth $6.3 billion in the second quarter, up 66% organically, while revenues increased 68%. Equipment backlog reached $40.6 billion, up 69% year over year. Data-center orders exceeded $5 billion during the first half of 2026 —more than double the company’s total for 2025.

What Other Stocks Stand to Benefit From This Trend?Along with GE Vernova, other companies are also positioned to benefit from this power-investment cycle.

Constellation Energy (CEG - Free Report) provides direct exposure to the generation side of rising U.S. electricity demand. As AI data centers, manufacturing facilities and broader electrification increase power consumption, the value of reliable, around-the-clock generation capacity is rising.

Eaton (ETN - Free Report) benefits from rising demand for electrical equipment and power-management solutions. The company is increasingly exposed to data-center construction and the broader need to manage constrained power infrastructure. Eaton and Siemens Energy have even partnered on integrated power solutions for data centers.

Earnings Estimates for GEVThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 73.09% and that for 2027 EPS implies a decline of 21.29% year over year.

Image Source: Zacks Investment Research

GEV Stock Trading at a PremiumGEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.92X compared with the industry average of 23.93X.

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GEV Stock’s Price PerformanceIn the past six months, the company’s shares have risen 6.1% against the industry’s 15.3% decline.

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

Key Takeaways Petrobras beat Q2 earnings estimates by 13.2% as revenues jumped 59.8% year over year to $33.61B.Petrobras has about 270,000 barrels per day of remaining ramp-up capacity for the second half of 2026.Refinery utilization hit a record 101.2%, while Petrobras' segment adjusted EBITDA rose to $3.56B. Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) delivered a second-quarter 2026 earnings beat as record production, higher exports and a sharp rise in Brent prices lifted results. Earnings per ADS reached $1.72 versus the Zacks Consensus Estimate of $1.52, while revenues rose 59.8% year over year to $33.61 billion.

The question now is durability. Production still has room to ramp and refining is operating at record utilization, but a less favorable crude-price backdrop could test how much of the earnings step-up can persist.

PBR's Q2 Beat Came From Output and PricingPetrobras beat the earnings estimate by 13.2%, while revenues topped the $30.83 billion consensus mark by 9%. Adjusted EBITDA excluding one-off events reached $19.96 billion, up 95.1% year over year.

Exploration and Production revenues climbed 58.2% to $22.79 billion. Higher production and Brent prices lifted segment gross profit 72.2% to $13.44 billion.

Petrobras Upstream Momentum Has More Room to RunBrazil oil and natural gas liquids production rose 15.2% year over year to 2.689 million barrels per day. P-79 started three months ahead of the 2026-2030 Business Plan, while P-78 and Alexandre de Gusmão continued ramping.

Image Source: Petrobras

Petrobras identified about 270,000 barrels per day of remaining ramp-up capacity for the second half of 2026. Chevron Corporation (CVX - Free Report) also posted record U.S. upstream output of nearly 2.1 million oil-equivalent barrels per day in the second quarter.

PBR Refining Gains Add a Second Earnings EngineRefinery utilization reached a record 101.2%, while oil-products output rose 10.9% year over year to 1.918 million barrels per day. Oil-products imports fell to 67,000 barrels per day, the lowest quarterly volume on record.

Refining, Transportation and Marketing revenues advanced 63.4% to $32.35 billion. Segment adjusted EBITDA increased to $3.56 billion from $1.08 billion a year earlier.

Petrobras Cash Flow Must Fund Growth and DebtOperating cash flow reached $12.25 billion, while capital expenditures totaled $5.29 billion. About 82% of quarterly capital spending went to Exploration and Production projects.

Gross debt ended June at $70.81 billion and net debt at $60.39 billion, while net debt to trailing 12-month adjusted EBITDA improved to 1.14 times from 1.43 times. Exxon Mobil Corporation (XOM - Free Report) reported $23.6 billion of second-quarter cash flow from operating activities, providing another large-cap reference point for sector cash generation.

Image Source: Petroleo Brasileiro S.A. - Petrobras

PBR Earnings Still Hinge on Crude PricesBrent averaged $104.52 per barrel in the second quarter, up from $80.61 in the first. That 29.7% sequential increase amplified the benefit from higher production and exports.

Management expects Brent to move back toward the assumptions used in Petrobras' strategic plan. If that occurs, higher output and refining efficiency will need to offset some lost price support, making future quarters a clearer test of earnings durability.

PBR's Strong Style Scores Meet a Sell SignalPetrobras has an operational path to carry some second-quarter gains forward through platform ramp-ups and record refining activity. Still, the current earnings level also reflects an oil-price environment that management does not expect to persist.

PBR currently carries a Zacks Rank #4 (Sell). It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those Style Scores indicate favorable characteristics across the four measures, but they complement the Zacks Rank rather than override it. With a #4 Rank, the near-term estimate-revision signal remains the more cautious indicator.

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

Nebius stock jumped by over 6% in the extended hours as technology companies reacted to the strong Nvidia earnings, which painted a rosy color on the booming AI industry. It rose to $215 after ending the day at $213. Still, the company faces significant competition challenges as more companies move into the industry.

Nebius Group, a company that counts Nvidia as a big investor, rose after the latter delivered a stronger-than-expected earnings report. In a statement, Nvidia said that its revenue jumped to $96 billion last quarter, higher than the expected $92 billion.

Most importantly, the company guided to its FY’28 revenue growth being higher than expected. Its guidance is that its revenue will grow by 70%, much higher than the 40% analysts were expecting. The real figure will be much higher than that because the company assumed no China sales.

Nebius Group will benefit from the ongoing AI boom because it is one of the biggest infrastructure providers in the industry. It counts top companies like Meta Platforms and Nvidia as clients.

Its most recent results showed that revenue went parabolic, a situation that will accelerate in the foreseeable future. Its revenue jumped to $582 million in the second quarter, a 454% annual increase. For the first six months of the year, revenue was up by 529% to $981 million.

In its statement, the company said that demand for its computing power was so high that it could sell out its 2027 capacity today. This bodes well for its growth trajectory, which analysts expect will continue in the foreseeable future.

Indeed, analysts predict that its annual revenue will climb 532% this year to $3.35 billion. They also expect it to grow by over 250% next year to $11 billion. If this growth continues, it means that the company will hit the $50 billion mark in the coming years. 

Still, the company’s revenue growth has not boosted the stock performance. That’s because its business is facing substantial challenges, including the rising costs, with Nvidia planning to increase prices by as much as 15% in January. Other products like servers and memory are getting expensive by the day.

This surge will lead to more cash burn. In its last quarter, the company spent $5.7 billion in capex. As a result, there is a risk that it will dilute its shareholders further. It sold 12.7 million shares, generating $2.8 billion in cash. It has 12.3 million more shares available in the current ATM program. 

Competition is also rising in the industry. On Wednesday, Anthropic reached a $45 billion deal with Nscale, a top Nebius competitor. Rum Holdings, formerly known as Rumble, has also entered the industry. This is on top of other top companies like Meta Platforms, RIOT Platforms, and MARA Holdings.

These concerns explains why the company has a high short interest of over 21%, with Michael Burry being one of the top short sellers.

NBIS stock chart | Source: TradingView

The daily chart shows that the NBIS stock has pulled back, erasing the gains it made after the last financial results. It has dropped from a high of $276 to the current $213. By doing this, the stock has filled the fair-value gap it formed after its earnings report. 

The two lines of the MACD indicator have formed a bearish crossover pattern. On the positive side, it formed an abandoned baby candlestick pattern on August 24. Now, after the strong Nvidia earnings, there is a likelihood that it will retest the resistance at $250 and then resume the downward trend.

Nebius Group's (NBIS -4.26%) stock has surged after the artificial intelligence infrastructure company delivered a blockbuster second quarter.

Revenue jumped 454% year over year to $582 million,while adjusted EBITDA reached $236 million. The company also signed four AI cloud contracts worth more than $1 billion each.

The business is clearly moving fast. But so is the stock.

With shares trading at more than 200% return in just one year and the company valued at roughly $60 billion (as of writing), investors are asking an important question: Has Nebius already gone too far, or could the stock still have room to run?

Image source: Getty Images.

The AI opportunity is enormous Nebius doesn't build AI models like ChatGPT. Instead, it provides the computing infrastructure needed to build and run them. Think of Nebius as a company that rents out extremely powerful computers to businesses developing artificial intelligence.

Those computers require expensive Nvidia GPUs, data centers, electricity, cooling systems, and high-speed networks.

And demand is exploding. Nebius' AI cloud business generated about $575 million of revenue in the second quarter, more than five times the amount generated a year earlier. Management also expects full-year 2026 revenue of $3 billion to $3.4 billion and year-end annual recurring revenue of $7 billion to $9 billion.

The customer demand is equally impressive. Nebius now has more than $40 billion of customer commitments, while management expects more than $9 billion of customer prepayments during 2026. It also said it could sell all of its planned 2027 capacity at current terms.

In simple terms, companies are lining up to buy Nebius' computing capacity. That's the core reason investors are so excited.

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The economics are getting better, too Growth for the sake of growth is never a good thing. But here's where Nebius's business gets particularly interesting.

But first, some basics. Building AI infrastructure is incredibly expensive. Nebius spent about $5.7 billion on it in the second quarter alone. That raises a critical question: How quickly does Nebius get that money back?

Therein lies the good news. The company said the expected payback period for infrastructure tied to contracts signed in the second quarter had fallen to about one year and 10 months, compared with roughly two to three years historically.

That's a big improvement. Imagine Nebius spends $1 billion building AI infrastructure. If it takes three years to recoup that investment, growth requires substantial capital. But if the investment can be recovered in less than two years, Nebius can potentially put that money back to work much sooner.

In other words, it's improving its capital efficiency, which should lead to shareholder value creation.

But there are still big risks The biggest risk is that AI infrastructure becomes a victim of its own success.

Right now, demand for computing power is extremely strong. But companies across the industry are rushing to build more data centers and buy more GPUs. What happens if they eventually build too much? Prices could fall. Customers could have more bargaining power.

Moreover, Nebius's stock may appear to be quite expensive, even after accounting for all the prospects ahead. For perspective, the company is now worth roughly $60 billion and is expected to generate around $3.4 billion in revenue (at the top end of guidance) for 2026. That's a price-to-sales (PS) ratio of 18 times, which is anything but cheap! On one end, traditional valuation measures don't tell the whole story because Nebius is growing extraordinarily quickly. Investors aren't buying the company for what it earns today. They're paying for what they believe Nebius could become in several years.

If the company continues to win enormous contracts and keeps improving its profitability, today's valuation could eventually look much more reasonable.

But there isn't much room for disappointment. When investors pay a premium price for a rapidly growing company, even a small hiccup can cause the stock to fall sharply. For instance, the stock fell more than 20% just last week as the company announced $5 billion private offering of convertible senior notes, triggering severe investor fears regarding equity dilution and debt accumulation.

So, should investors buy Nebius stock? Overall, I'm bullish on the business, but more cautious about the stock at this price.

Nebius is growing rapidly, customers are committing billions of dollars, and its infrastructure expenses appear to be paying back faster. But the stock has already climbed dramatically, and investors are now expecting a lot. And that brings us to an important idea: A great company isn't always a great stock at any price.

For someone who already owns Nebius, I wouldn't sell simply because the stock has delivered good returns. The company's fundamentals are moving in the right direction.

For investors who don't own it, however, I wouldn't rush to invest a large amount in the stock at once. A smaller initial position, followed by additional purchases if the valuation becomes more attractive or the company continues exceeding expectations, could offer a better balance between opportunity and risk.

Key Takeaways RDW's Q2 revenues jumped 89.6% to a record $117.1 million as gross margin improved to 27.8%.Defense Tech revenues surged to $61.9 million, while adjusted EBITDA improved to $14.1 million.Redwire won new autonomous-systems contracts and delivered nearly 200 Octopus ISR payloads in 2026. Redwire Corporation (RDW - Free Report) is increasingly positioning itself at the intersection of two structural trends in aerospace and defense — the modernization of space infrastructure and the growing adoption of autonomous systems. Its second-quarter 2026 results indicate that this strategy is beginning to translate into significant revenue growth, higher margins and a growing backlog.

The company generated record revenues of $117.1 million in the second quarter, up 89.6% year over year, while gross margin improved to 27.8% from negative 30.9% a year earlier. Redwire also achieved a second quarter book-to-bill ratio of 1.42, indicating that new contract awards are outpacing current revenues.

The Defense Tech segment is becoming increasingly important to Redwire’s growth profile. The segment generated $61.9 million of second-quarter revenues compared with just $5.1 million a year earlier, while segment adjusted EBITDA improved to $14.1 million from a $15 million loss.

The growth reflects demand for Redwire’s autonomous systems and defense technologies. During the quarter, the company received follow-on awards for its Stalker Block 30 systems and contracts for Penguin uncrewed aerial systems, including a multi-year contract valued in the high eight figures from an undisclosed NATO country. Redwire also delivered nearly 200 Octopus ISR payloads during the first half of 2026, up more than 15% year over year.

Redwire’s second-quarter results suggest that the company is moving toward a larger and more diversified space-and-defense platform. Rapid revenue growth, improving gross margins and the growing contribution from Defense Tech provide a stronger foundation for future expansion.

Which Other Stocks Could Benefit From the Trend?Redwire is part of a much broader aerospace and defense investment cycle, driven by rising defense budgets, geopolitical tensions, space modernization and demand for autonomous technologies.

L3Harris Technologies (LHX - Free Report) is particularly relevant to Redwire's autonomous and space theme because of its exposure to communications, sensing, space systems and electronic warfare.

Northrop Grumman (NOC - Free Report) provides another way to participate in the growth of space and defense technology, with exposure to strategic systems, space programs, autonomous platforms and advanced defense technologies.

RDW Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 58.54% and 38.6%, respectively.

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RDW Stock Trades at a PremiumIn terms of valuation, RDW’s forward 12-month price-to-sales (P/S) is 5.44X, a premium to the industry’s average of 2.47X.

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RDW Stock’s Price PerformanceIn the past six months, the company’s shares have risen 26.6% against the industry’s 12.4% decline.

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

For Immediate ReleaseChicago, IL – August 26, 2026 – Today, Zacks Equity Kla (KLAC - Free Report) , Teradyne (TER - Free Report) and Garmin (GRMN - Free Report)

Industry: Electronics - Miscellaneous

Link: https://www.zacks.com/commentary/2979708/3-electronics-stocks-set-to-benefit-from-a-prospering-industry

The Zacks Electronics – Miscellaneous Products industry players like Kla, Teradyne and Garmin are benefiting from higher spending on artificial intelligence (AI) infrastructure, data center and cloud computing. Rising spending by hyperscalers on AI compute is increasing demand for more advanced semiconductors, networking equipment, testing, process-control and precision electronic components. 

Advanced chip architectures, High-Bandwidth Memory (HBM) adoption, EUV, hybrid bonding and increasingly complex packaging are increasing process-control intensity and creating demand for technologies that improve yield, reliability and system performance. However, this industry is subject to fluctuations in semiconductor capital-spending cycles, macroeconomic conditions, inventory adjustments and changes in end-market demand. Supply-chain constraints, rising input costs and geopolitical trade restrictions are notable headwinds for industry participants.

Industry DescriptionThe Zacks Electronics – Miscellaneous Products industry includes a number of original equipment manufacturers of power products, drivetrains, green energy solutions, remote-control systems, GPS navigation, home automation systems, healthcare devices, industry/factory automation, robotics, semiconductor and optical applications and energy management solutions. The industry is evolving through digital transformation and the growing demand for silicon across multiple markets. 

The increasing cost of manufacturing bodes well for equipment suppliers, while the growing demand for silicon is positive for semiconductor companies. Apart from the United States, companies in this industry are based in Japan, Germany, the Netherlands and Switzerland. These companies either have manufacturing operations in China and Southeast Asia or generate significant revenues from these regions.

3 Trends Shaping the Future of the IndustrySolid Capital Spending Drives Prospects: Ongoing technology transition due to rapid deployment of AI is driving product complexities, which is raising the demand for solutions provided by industry participants. More complex designs, accelerating product cycles and high-value wafer volumes are growing the demand for advanced packaging. Increasing investment in expanding manufacturing capacity by semiconductor companies is a key catalyst in the long run. Since semiconductor companies are major customers of miscellaneous electronics product manufacturers, the trend bodes well for industry participants. In addition, rising spending on advanced nodes — 7 nm, 5 nm, 3 nm and 2 nm processes from logic and foundry customers — favors industry participants. Logic and foundry spending is anticipated to be healthy this year. 

Strong Demand for AI, Data Center and Cloud Computing Solutions: Industry participants are riding on strong AI infrastructure investments, increasing compute intensity, and the need for more advanced power, thermal, automation and testing solutions. Strong hyperscaler spending, rapid advanced packaging adoption and large-scale data center buildouts are key catalysts. The rapid growth of AI workloads is increasing process complexity, driving higher demand for process control, metrology, inspection, specialty materials, precision timing and semiconductor test equipment. Meaningful recovery in industrial automation and digital infrastructure markets bodes well for industry participants.

Demand for Integrated Solutions is Rising: The industry is increasingly moving toward integrated solutions that combine compute, power, cooling, automation and energy management. This shift from discrete subsystem deployments is creating opportunities for suppliers with broad technology portfolios and systems-level capabilities. 

Challenging Macroeconomic Conditions Acts as Headwind: Industry participants are suffering from challenging macroeconomic conditions globally, with enterprises in automotive, industrial and energy end-markets showing reluctance in committing to multi-year deals. Supply chains remain under pressure as companies work to secure capacity and critical components to support rapidly rising AI-driven demand, while extended lead times and infrastructure bottlenecks, particularly around power availability, are constraining the pace of data center deployment. Additionally, memory price volatility, tariff-related cost increases, and the growing concentration of demand among a small number of hyperscale and AI customers are major concerns for industry players.

Zacks Industry RankThe Zacks Electronics – Miscellaneous Products industry is housed within the broader Zacks Computer and Technology sector. The industry carries a Zacks Industry Rank #72, which places it in the top 29% of more than 246 Zacks industries.

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

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Dec. 31, 2025, earnings estimates for the industry for the current year have moved north by 13.4%.

Given the bullish prospects, there are many stocks worth buying in the industry. But before we present those stocks, let us take a look at the industry’s recent stock-market performance and valuation picture.

Industry Beats S&P 500, Broader SectorThe Zacks Electronics – Miscellaneous Products industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector in the past year.

The industry has appreciated 57.8% during this period compared with the S&P 500 composite’s return of 20.8% and the broader sector’s appreciation of 28.6%.

Industry's Current ValuationOn the basis of the forward 12-month P/E, which is a commonly used multiple for valuing Electronics-Miscellaneous products companies, we see that the industry is currently trading at 28.27X compared with the S&P 500’s 20.37X and the sector’s forward-12-month P/E of 20.90X.

Over the last five years, the industry has traded as high as 44.84X and as low as 26.50X, with the median being 29.36X.

3 Stocks to Buy Right NowTeradyne: This Zacks Rank #1 (Strong Buy) company’s shares have appreciated 88.5% year to date (YTD). You can see the complete list of today’s Zacks #1 Rank stocks here.

Rising AI investment is increasing demand for CPUs, accelerators, networking chips, HBM, DDR and storage, driving demand for semiconductor test. Teradyne expects higher wafer-fab equipment spending to drive faster transistor and memory-bit production, supporting expansion of the automated test equipment (ATE) market. The company sees a path for the overall ATE TAM to reach or exceed $20 billion as WFE spending approaches $250 billion by the end of the decade.

Increasing chiplet counts and more complex multichip packages require greater testing intensity to ensure acceptable yields, creating a structural tailwind for Teradyne. The company is also positioned to gain share through merchant GPU programs, hyperscaler dual-sourcing and its strong position in HBM and DRAM testing.

The Zacks Consensus Estimate for Teradyne’s 2026 earnings has jumped 26.4% to $9.10 per share over the past 30 days.

Garmin: Another Zacks Rank #1 stock, Garmin’s Fitness business remains a major growth engine, with second-quarter revenues rising 25% on strong demand for advanced wearables. New products such as the Forerunner lineup and CIRQA Smart Band are broadening Garmin’s addressable market, while the TrainingPeaks and TrainHeroic acquisitions expand its services ecosystem and create a more integrated training experience for customers.

Garmin continues to benefit from new-product launches and resilient demand across aviation and marine. Aviation is supported by strong OEM backlogs and aftermarket demand, while the new AXIS integrated cockpit platform could broaden adoption by reducing installation cost and complexity. Marine growth is supported by products such as LiveScope 2, which strengthens Garmin’s position in premium sonar technology.

The Zacks Consensus Estimate for GRMN’s 2026 earnings has increased 4.3% over the past 30 days to $9.94 per share. Garmin shares have surged 43.5% YTD.

KLA: This Zacks Rank #2 (Buy) company is benefiting from accelerating investment in AI infrastructure, leading-edge foundry/logic, HBM and advanced packaging. More complex device architectures, higher-value wafers and tighter performance specifications are increasing the need for inspection and metrology. KLA expects advanced-packaging process-control systems revenues to reach roughly $1.1 billion in calendar 2026, up more than 70% year over year.

Rising investment across leading-edge logic, DRAM, HBM, NAND and new greenfield fabs should support continued equipment demand into 2027. Meanwhile, KLA Services is benefiting from a growing installed base and high tool utilization, with roughly 80% of service revenues contract-based. Higher equipment shipments should further expand the service opportunity.

KLAC shares have surged 49.4% YTD. The consensus mark for KLA’s fiscal 2027 earnings has increased 7.1% to $5.43 per share over the past 30 days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

Key Takeaways IonQ's Q2 revenue surged 287% to $80.1 million, marking its fifth straight record quarter.Rigetti's revenues rose 185% to $5.1 million as it advanced Cepheus-1 and its 1,000-qubit roadmap.IonQ raised 2026 revenue guidance to $280-$290 million while expanding its full-stack strategy. Quantum computing remains one of Wall Street's highest-risk, highest-reward themes, and the latest earnings season gave investors a fresh reason to compare two of the sector's biggest names. While Rigetti Computing (RGTI - Free Report) and IonQ (IONQ - Free Report) are pursuing different technology road maps, both used their second-quarter 2026 updates to showcase accelerating commercial traction and ambitious scaling plans.

IONQ delivered the bigger financial headline. Revenues surged 287% year over year to $80.1 million, marking its fifth straight record quarter, while management raised full-year revenue guidance to $280-$290 million. The company also strengthened its vertically integrated strategy through the SkyWater acquisition and highlighted progress toward semiconductor-based 256-qubit systems.

Rigetti's numbers were smaller, with revenues climbing 185% to $5.1 million, but its quarter centered on execution. The company advanced its 108-qubit Cepheus-1 platform, reiterated its chiplet-based roadmap toward 1,000 qubits and secured a Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding.

Investors have rewarded the stronger commercial momentum. Over the past month, IONQ and RGTI’s shares have gained 14.3% and 4.6%, respectively, reflecting greater confidence in IonQ's near-term execution. Still, Rigetti's government backing, modular architecture and hybrid computing partnerships suggest this race is about more than today's revenue figures.

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Let's get into more detail.

Rigetti's Growth CatalystsRigetti's second quarter reinforced its execution-focused investment case as revenue rose 185% year over year to $5.1 million, driven by on-premises Novera QPU sales, while gross margin expanded to 43% from 31% a year ago. The company also advanced its 108-qubit Cepheus-1 platform, reaffirmed its chiplet-based roadmap toward 1,000 qubits, secured a U.S. Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding and maintained a strong balance sheet with $541.3 million in cash and investments and no debt.

What's Holding Rigetti BackRigetti's biggest challenge remains translating technical progress into sustained commercial scale. Despite strong revenue growth, quarterly sales remain modest at $5.1 million, while operating expenses increased to $30.3 million as the company continued investing heavily in R&D, fabrication, refrigeration infrastructure and chip development. The company also needs to deliver meaningful improvements in Cepheus-1's gate fidelity and coherence times while executing on its ambitious 1,000-qubit roadmap, with the proposed CHIPS Act funding still awaiting a definitive agreement.

IonQ's Growth DriversIonQ strengthened its leadership position in the second quarter as revenue surged 287% year over year to $80.1 million, while organic revenue climbed 132%. The company continued expanding its commercial footprint, with 60% of revenues coming from commercial customers, 50% from international markets and 25% from multiproduct sales, while remaining performance obligations jumped to $485 million. IonQ also raised its 2026 revenue guidance to $280-$290 million and reinforced its full-stack strategy through the SkyWater acquisition and growing exposure across quantum computing, networking, security and defense.

What Could Slow IonQ's MomentumIonQ's rapid expansion continues to come with elevated costs and execution demands. The company posted an adjusted EBITDA loss of $120.3 million during the quarter, while SkyWater-related investments increased near-term spending as it accelerated product development and supply chain integration. Although the $1.8 billion SkyWater acquisition strengthens IonQ's long-term manufacturing strategy, it also raises the complexity of integrating operations while delivering on an ambitious roadmap spanning semiconductor-based quantum hardware, networking and security solutions.

2026 Estimates: RGTI Vs. IONQFor the full year, the Zacks Consensus Estimate for RGTI’s bottom line is pegged at a loss of 19 cents per share, implying a 70.3% improvement over the 2025 reported figure.

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The Zacks Consensus Estimate for IONQ’S 2026 bottom line is pegged at a loss of $1.19 per share, implying 34.6% growth over the 2025 reported loss.

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Bullish Price Target for RGTI over IONQBased on short-term price targets offered by 12 analysts, the average price target for IonQ represents an increase of 55.1% from the last closing price of $44.86.

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Based on short-term price targets offered by 11 analysts, the average price target for RGTI represents an increase of 64.99% from the last closing price of $17.91.

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Final Take: RGTI or IONQ?IonQ appears to have won the second-quarter earnings battle with far stronger revenue growth, higher commercial traction and a raised 2026 outlook, while Rigetti's update leaned more on technical milestones and long-term execution. However, neither stock currently carries a favorable Zacks rating. IonQ carries a Zacks Rank #4 (Sell), while Rigetti carries a Zacks Rank #5 (Strong Sell), suggesting weaker near-term expectations for both. Given IonQ's stronger operating momentum but elevated spending and integration risks, and Rigetti's earlier-stage commercial profile, investors may prefer to stay on the sidelines until fundamentals improve and their Zacks ratings turn more favorable.

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

The tail end of the summer may be giving investors in quantum computing a bit of whiplash. On the one hand, D-Wave Quantum Inc. NASDAQ: QBTS delivered one of the more underwhelming Q2 2026 earnings reports, missing on both earnings and revenue, with sales growth seemingly grinding to a halt while competitors saw healthy acceleration.

D-Wave Quantum Today

$16.99 -0.91 (-5.08%)

As of 08/28/2026 04:00 PM Eastern

$12.75▼

$46.75$36.27

On the other hand, shares of QBTS are up about 20% in the last month, perhaps the first sign of a recovery after a multi-month decline that has been ongoing since May. Short interest in the stock is up, but only to about 1.3% of the float over the past month.

Get D-Wave Quantum alerts:

Despite missing expectations and appearing to fall behind the pack in its last earnings, there is nonetheless a compelling bull case for D-Wave going forward—based on the company's strong potential to convert contracted projects into realized revenue, its capacity to build bookings, its rising backlog, and more.

All of these factors could combine to justify Wall Street's continued enthusiasm and the impressive 90% predicted upside for QBTS stock.

Looking Beyond the Sales SlumpD-Wave's Q2 sales slump is, on the surface, discouraging—particularly given that rivals like IonQ Inc. NYSE: IONQ posted strong growth in this area in their recent reports. However, there are signs beyond revenue that D-Wave's commercial adoption may be poised to take off.

Commercial revenues represented some 62% of revenue for the quarter, an increase of 45% compared to the prior-year quarter. The company is also generating its revenue from more customers—over 100 in the first half of the year—which is an important development for a firm and industry that has traditionally relied heavily on a small number of lucrative contracts to fuel bottom lines.

Crucially, customers are moving beyond experimentation with quantum tech. Production applications accounted for more than 37% of D-Wave's quantum computing as a service (QCaaS) revenue in the first half of 2026, nearly quadruple their share of those sales in the first half of 2025. This could be an indication that clients are more thoroughly integrating quantum computing into their day-to-day operations.

Bookings and Backlog May Be a Hidden Measure of SuccessPerhaps the strongest argument that investors should not write D-Wave off just yet is the company's strong customer demand, as evidenced by its bookings. While much of this demand has not yet translated to realized revenue, the firm noted 59% year over year (YOY) improvement in its quarterly bookings. Looking at the entire first half of the year, bookings were up a stratospheric 1,120% to $35.5 million.

Yes, more than half of that latter figure is due to a single annealing system sale to Florida Atlantic University—though a good portion of that contract has not yet been recognized as revenue in a quarterly earnings report owing to the lengthy delivery, installation, and testing process. This, however, gives investors a glimpse of future earnings, with the anticipation that the majority of that contract—and others—will show up in future revenue figures.

Looking at D-Wave's backlog also gives the impression that momentum is building in key areas. The firm's remaining performance obligations (RPO) suggest that future revenue could be much higher than recent results would indicate. As of the end of June 2026, D-Wave's RPO stood at $40.7 million, a massive 668% up from the same figure one year earlier. If the expected 57% of that backlog converts to revenue in the coming year, investors may look ahead to a major sales boost.

A Reminder of the RisksThe quantum race is continuing at breakneck speed, and despite the potential suggested by some details in D-Wave's recent earnings report, investors should keep in mind the risks. The industry may be stratifying into top performers, middling firms, and up-and-coming stars, and there is always the threat posed by major legacy tech companies as well.

D-Wave's earnings were a disappointment, with revenue coming in below expectations, losses appearing wider than analysts had predicted, and investors reminded that quarterly results are lumpy and unpredictable. Beyond that, quantum as an industry remains speculative, as none of the firms has achieved widespread commercial adoption yet.

D-Wave's technology is compelling, and its poor revenue performance may not reflect the real momentum that is building among customers. However, the company still very much faces an uphill battle if it is to lead the quantum industry in its efforts to revolutionize computing across the board.

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Should You Invest $1,000 in D-Wave Quantum Right Now?Before you consider D-Wave Quantum, you'll want to hear this.

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A retiring CFO sent D-Wave Quantum shares tumbling while peers like IonQ and Rigetti got caught in the crossfire, raising a bigger question about whether a routine leadership change reveals something deeper about the risks of owning pre-profit quantum names.

D-Wave Quantum (NYSE:QBTS) stock is down 8% to $17.79 in midday trading Wednesday after the company disclosed its chief financial officer will retire next week. Also, IonQ (NYSE:IONQ | IONQ Price Prediction) shares are down 3% to $40.68, tracking the D-Wave headline as sentiment seems to sour on certain quantum-computing names.

The Defiance Quantum ETF (NASDAQ:QTUM) is down 0.4% to $148.27, barely reacting to the D-Wave move. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is unchanged at $765.57. That gap between the cluster fund and its noisiest member frames today’s decline as a name-specific event.

D-Wave Quantum stock was down 26% year to date through Tuesday’s close, so today’s reaction lands on a name already under pressure this year. IonQ shares are also lower year-to-date, providing context for today’s sympathy move. D-Wave Quantum’s market capitalization sits at $6.57 billion, while IonQ’s market cap sits at $16.48 billion.

Catalyst: Markovich Retires Effective September 2 D-Wave Quantum announced on August 25 that CFO John Markovich is retiring and stepping down effective September 2. Greg Golkov, senior vice president of finance since May 2023, becomes acting chief financial officer and principal financial and accounting officer.

Golkov brings more than 25 years of finance and accounting experience, previously serving as vice president and controller at Butterfly Network and senior vice president of finance at Kaseya. His current remit at D-Wave Quantum already covers accounting, SEC reporting, financial planning and analysis, treasury and tax, so the internal handoff is coming from a familiar seat. Prior operating roles at technology and IT services businesses give Golkov experience relevant to D-Wave Quantum’s cloud-first commercial model.

D-Wave Quantum’s release stated explicitly that the resignation was not the result of any disagreement with the company on any matter relating to its business, operations, accounting policies, practices, financial statements, disclosure controls and procedures, or internal control over financial reporting. CEO Alan Baratz credited Markovich with a pivotal role in taking the company public in 2022, raising over $900 million in capital, and developing a path to profitability.

Why an Orderly CFO Change Is Sinking QBTS The company is a pre-profit business with a $6.57 billion market capitalization built on future capital raises and future revenue conversion. The company is the only company offering both annealing and gate-model quantum computing systems, sells through the Leap quantum cloud service, professional services, and on-premises systems, and serves more than 100 organizations while holding over 290 U.S. granted patents.

At companies at this stage, the finance seat carries more weight than at a mature operator, because credibility around the path to profitability and the ability to execute additional financings run through it. D-Wave Quantum has stated there was no accounting or controls issue behind the change, so today’s response reads as sentiment around an unexpected leadership shift at a speculative name.

D-Wave Quantum’s Q2 2026 results underline why finance leadership matters at this stage. The company reported Q2 revenue of $3.08 million (missing the $4.03 million estimate), while remaining performance obligations reached $40.7 million, up 668% year over year.

IonQ’s own most recent quarter provides useful contrast on why the market reacts differently to different quantum names. IonQ reported Q2 2026 revenue of $80.05 million (beating the $66.42 million estimate) and raised its full-year 2026 outlook to $280 million to $290 million. That stronger fundamental profile helps explain why the sympathy move in IonQ stock is smaller than the primary reaction in D-Wave Quantum stock today.

Peer Reaction and Position Sizing Other quantum names frequently trade alongside D-Wave and IonQ shares on quantum headlines, and remain part of the same speculative basket. The 3% slide in IonQ stock today, alongside a barely-moved Defiance Quantum ETF, is a reminder of how correlated the group remains, even when the trigger belongs to one company.

Rigetti Computing (NASDAQ:RGTI) stock is trading at $16.12, down 5%. Quantum Computing Inc. (NASDAQ:QUBT) stock is down only 1% to $8.35. Both names are lower on the session, but as you can see, the damage isn’t evenly spread.

For position sizing, investors holding D-Wave Quantum stock into this transition may want to keep their exposure modest until Golkov’s tenure produces a full quarterly close and an earnings call. D-Wave Quantum stock carries a beta of 2.16 and a 52-week range of $12.75 to $46.75, which argues for smaller position sizes than a mature technology name would warrant (we wrote a free playbook on sizing speculative bets to no more than 5% of a portfolio, here).

Investors can watch for signs that the acting CFO tag becomes permanent, which would remove one layer of uncertainty from this story. D-Wave Quantum’s next scheduled information point is the Q3 2026 earnings report, where management can address capital planning, the pace of bookings-to-revenue conversion, and the path to profitability under new finance leadership.

Contact [email protected] for any questions or corrections.

Earnings News Release • Three and nine months ended July 31, 2026

This quarterly Earnings News Release (ENR) should be read in conjunction with the Bank's unaudited third quarter 2026 Report to Shareholders for the three and nine months ended July 31, 2026, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on our website at http://www.td.com/investor/. This ENR is dated August 26, 2026. Unless otherwise indicated, all amounts are expressed in Canadian dollars, and have been primarily derived from the Bank's Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been revised to conform with the presentation adopted in the current period. Additional information relating to the Bank is available on the Bank's website at http://www.td.com, as well as on SEDAR+ at http://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's (SEC) website at http://www.sec.gov (EDGAR filers section).
     Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures. For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed", or "How Our Businesses Performed" sections of this document.

THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter last year:

Reported diluted earnings per share were $2.74, compared with $1.89. Adjusted diluted earnings per share were $2.77, compared with $2.20. Reported net income was $4,615 million, compared with $3,336 million. Adjusted net income was $4,671 million, compared with $3,871 million. YEAR-TO-DATE FINANCIAL HIGHLIGHTS, nine months ended July 31, 2026, compared with the corresponding period last year:

Reported diluted earnings per share were $7.50, compared with $9.72. Adjusted diluted earnings per share were $7.59, compared with $6.19. Reported net income was $12,909 million, compared with $17,258 million. Adjusted net income was $13,055 million, compared with $11,120 million. THIRD QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The third quarter reported earnings figures included the following items of note:

Amortization of acquired intangibles of $34 million ($25 million after tax or 1 cent per share), compared with $33 million ($25 million after tax or 1 cent per share) in the third quarter last year. Impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $41 million ($31 million after tax or 2 cents per share), compared with $55 million ($41 million after tax or 2 cents per share) in the third quarter last year. , /CNW/ -- TD Bank Group ("TD" or the "Bank") today announced its financial results for the third quarter ended July 31, 2026. Reported earnings and earnings per share were $4.6 billion and $2.74, compared with $3.3 billion and $1.89, respectively, in the third quarter last year. Adjusted earnings and earnings per share were $4.7 billion and $2.77, up 21% and 26%, respectively, year-over-year.

"TD had a very strong quarter, with record earnings in our Canadian businesses and Wholesale Banking, and growing momentum in U.S. Banking," said Raymond Chun, Group President and CEO, TD Bank Group. "With a focus on disciplined execution, ROE was up significantly and we generated positive operating leverage while continuing to invest in front-line talent, AI and innovation to deepen client relationships and grow the Bank. One year after Investor Day, we are delivering on our commitments, executing our strategy and creating value for our shareholders."

Canadian Personal and Commercial Banking delivered record revenue, earnings, deposit and loan volumes
Canadian Personal and Commercial Banking net income was $2,095 million, an increase of 7% year-over-year, primarily reflecting higher pre-tax, pre-provision earnings (PTPP)1,2. Revenue for the quarter was $5,517 million, up 5% year-over-year, driven by deposit and loan volume growth and higher margins.

Canadian Personal Banking delivered acquisition momentum in day-to-day banking products3, including a record Q3 in digital sales, which were up 17% year-over-year. The business reinforced its digital leadership, with TD ranking #1 in Customer Satisfaction with Mobile Banking Apps according to JD Power4. Canadian Business Banking delivered strong deposit and loan growth this quarter, reflecting the benefits of its distribution expansion, and increased commercial client acquisition by 10% year-to-date.

U.S. Banking results demonstrate earnings power of the franchise
U.S. Banking net income was $1,074 million (US$771 million), an increase of 41% (39% in U.S. dollars) year-over-year on a reported basis, and an increase of 12% (11% in U.S. dollars) year-over-year on an adjusted basis. The segment delivered a return on equity of 10.2%, up 310 basis points year-over-year on a reported basis, and 130 basis points year-over-year on an adjusted basis, as the business continued to optimize its balance sheet and manage capital with discipline.

U.S. Banking loans were positive sequentially, reflecting growth in middle market commercial lending and TD's proprietary credit card balances. In U.S. Wealth, record mass affluent investment assets were driven by net asset growth and market appreciation. TD Auto Finance U.S. was ranked #1 in Dealer Satisfaction among National Prime Credit Non-Captive Automotive Finance Lenders for the seventh consecutive year in the JD Power 2026 U.S. Dealer Financing Satisfaction Study5.

Wealth Management and Insurance delivered record revenue, earnings and assets
Wealth Management and Insurance net income was $841 million, an increase of 20% year-over-year, driven by record assets, higher insurance earned premiums, and deposit volume growth.

Wealth Management continued to expand its client base and drive higher engagement, with new accounts up 26% year-over-year. The business continued to gain momentum among new investors, with average trades per day up 20% year-over-year in TD Direct Investing. TD Insurance and REALTOR.ca launched an integrated digital experience that brings home insurance guidance into the home-buying journey, helping Canadians make more informed decisions to protect one of their largest investments.

Wholesale Banking delivered record revenue and earnings
Wholesale Banking net income was $743 million, an increase of 87% year-over-year on a reported basis and 76% year-over-year on an adjusted basis, primarily reflecting higher revenues and lower PCL, partially offset by higher non-interest expenses.

Wholesale Banking delivered record performance, leveraging the strength of its platform amid heightened client activity and favourable market conditions to achieve revenue growth of 25% year-over-year. Combined with disciplined expense and capital management, this strong momentum drove a return on equity of 16.7%.

Capital
TD's Common Equity Tier 1 Capital ratio was 14.3%.

Conclusion
"We enter the final quarter of 2026 from a position of strength, moving with speed to capture the significant growth opportunities across our businesses," added Chun. "TD's strong capital position enables us to support our clients' growing needs, invest in our business and return excess capital to our shareholders. I am proud of what our colleagues have accomplished and thank them for their continued commitment to our clients and our Bank."

The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements" on page 3.

1

 PTPP is a non-GAAP financial measure, calculated by subtracting Canadian Personal and Commercial Banking segment's reported non-interest expenses from reported revenue. Reported revenue – Q3 2026: $5,517 million, Q3 2025: $5,241 million. Reported non-interest expenses – Q3 2026: $2,131 million, Q3 2025: $2,066 million. PTPP – Q3 2026: $3,386 million, Q3 2025: $3,175 million.

2

For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document.

3

Includes chequing, savings and credit cards.

4

TD received the highest score in the JD Power 2026 Canada Banking Mobile App Satisfaction Study which measures customer satisfaction with financial institutions' mobile applications for banking account management. Visit jdpower.com/awards for more details.

5

TD Auto Finance U.S. received the highest score in the non-captive national-prime segment in the JD Power 2020-2026 U.S. Dealer Financing Satisfaction Studies of dealers' satisfaction with automotive finance providers. Visit jdpower.com/awards for more details.

Caution Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management's Discussion and Analysis (2025 MD&A) in the Bank's 2025 Annual Report under the heading "Economic Summary and Outlook", under the headings "Key Priorities for 2026" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking segments, and in other statements regarding the Bank's objectives and priorities for 2026 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, targets and commitments, the Bank's anticipated financial performance and the outlook for the Bank's operations or the Canadian, U.S. and global economies.
     Forward-looking statements are typically identified by words such as "will", "would", "should", "suggest", "seek", "believe", "expect", "anticipate", "intend", "ambition", "strive", "confident", "estimate", "forecast", "outlook", "plan", "goal", "commit", "target", "objective", "timeline", "possible", "potential", "predict", "project", "foresee", "may", and "could" and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank's control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations, predictions, forecasts, projections, estimates, targets, or intentions expressed in the forward-looking statements. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates; geopolitical risk (including policy, trade and tax-related risks and the potential impact of any new or elevated tariffs or any retaliatory tariffs); inflation, interest rates and recession uncertainty; risks associated with the remediation of the Bank's U.S. Bank Secrecy Act (BSA)/anti-money laundering (AML) program and Enterprise AML program; regulatory oversight and compliance risk; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; risks associated with the insured deposit account agreement between the Bank and The Charles Schwab Corporation; technology and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank's technologies, systems and networks, those of the Bank's customers (including their own devices), and third parties providing services to the Bank; data risk; model risk; external fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including consumer protection laws and regulations, tax laws, capital guidelines and liquidity regulatory guidance; environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; ability of the Bank to attract, develop, and retain key talent; changes in foreign exchange rates, interest rates, credit spreads. equity prices and commodity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency; the value and market price of the Bank's common shares and other securities may be impacted by market conditions and other factors; the interconnectivity of financial institutions including existing and potential international debt crises; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. For more detailed information, please refer to the "Risk Factors and Management" section of the 2025 MD&A, and the sections related to strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, compliance, financial crime, reputational, environmental and social risk in the "Managing Risk" section of the 2025 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings "Significant Events" or "Update on U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program Remediation and Enterprise AML Program Improvement Activities" in the relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank's forward-looking statements.
     Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 MD&A under the headings "Economic Summary and Outlook" and "Significant Events", under the headings "Key Priorities for 2026" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking segments, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable).
     Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.

This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release.

TABLE 1: FINANCIAL HIGHLIGHTS

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Results of operations

Total revenue – reported

$

16,885

$

15,797

$

15,297

$

49,267

$

52,283

Total revenue – adjusted1

16,926

16,037

15,614

49,592

45,782

Provision for (recovery of) credit losses

917

1,001

971

2,957

3,524

Insurance service expenses (ISE)

1,646

1,398

1,563

4,666

4,487

Non-interest expenses – reported

8,475

8,372

8,522

25,600

24,731

Non-interest expenses – adjusted1

8,441

8,339

8,124

25,343

24,015

Net income – reported

4,615

4,251

3,336

12,909

17,258

Net income – adjusted1

4,671

4,168

3,871

13,055

11,120

Financial position (billions of Canadian dollars)

Total loans net of allowance for loan losses

$

991.0

$

964.3

$

936.1

$

991.0

$

936.1

Total assets

2,111.9

2,085.1

2,035.2

2,111.9

2,035.2

Total deposits

1,260.7

1,243.4

1,256.9

1,260.7

1,256.9

Total equity

127.0

124.3

125.4

127.0

125.4

Total risk-weighted assets2

653.4

641.4

627.2

653.4

627.2

Financial ratios

Return on common equity (ROE) – reported3

15.8 %

14.7 %

11.3 %

14.6 %

20.2 %

Return on common equity – adjusted1

16.0

14.4

13.2

14.8

12.9

Return on tangible common equity (ROTCE)1,3

19.0

17.7

13.6

17.6

25.2

Return on tangible common equity – adjusted1

19.1

17.2

15.8

17.7

15.9

Efficiency ratio – reported3

50.2

53.0

55.7

52.0

47.3

Efficiency ratio – adjusted, net of ISE1,3,4

55.2

57.0

57.8

56.4

58.2

Provision for (recovery of) credit losses as a % of net

      average loans

0.37

0.43

0.41

0.41

0.50

Common share information – reported (Canadian dollars)

Per share earnings

     Basic

$

2.75

$

2.44

$

1.89

$

7.53

$

9.73

     Diluted

2.74

2.43

1.89

7.50

9.72

Dividends per share

1.12

1.08

1.05

3.28

3.15

Book value per share3

69.69

68.22

67.13

69.69

67.13

Closing share price (TSX)5

168.04

146.33

100.92

168.04

100.92

Shares outstanding (millions)

     Average basic

1,646.0

1,660.7

1,716.7

1,662.3

1,735.7

     Average diluted

1,652.2

1,665.5

1,718.9

1,667.6

1,737.0

     End of period

1,638.4

1,652.1

1,707.2

1,638.4

1,707.2

Market capitalization (billions of Canadian dollars)

$

275.3

$

241.7

$

172.3

$

275.3

$

172.3

Dividend yield3

2.8

%

3.2

%

4.4

%

3.1

%

4.9

%

Dividend payout ratio3

40.7

44.1

55.4

43.4

32.3

Price-earnings ratio3

18.0

17.3

8.6

18.0

8.6

Total shareholder return (1 year)3

71.9

72.2

30.0

71.9

30.0

Common share information – adjusted (Canadian dollars)1

Per share earnings

     Basic

$

2.78

$

2.39

$

2.20

$

7.61

$

6.19

     Diluted

2.77

2.38

2.20

7.59

6.19

Dividend payout ratio

40.2

%

45.0

%

47.5

%

42.9

%

50.7

%

Price-earnings ratio

17.2

15.9

12.8

17.2

12.8

Capital ratios2

Common Equity Tier 1 (CET1) Capital ratio

14.3 %

14.3 %

14.8 %

14.3 %

14.8 %

Tier 1 Capital ratio

16.1

16.0

16.5

16.1

16.5

Total Capital ratio

17.9

17.8

18.4

17.9

18.4

Leverage ratio

4.5

4.5

4.6

4.5

4.6

Total Loss Absorbing Capacity (TLAC) ratio

31.1

31.1

30.9

31.1

30.9

TLAC Leverage ratio

8.8

8.8

8.7

8.8

8.7

1

The Toronto-Dominion Bank ("TD" or the "Bank") prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as the "reported" results. The Bank also utilizes non-GAAP financial measures such as "adjusted" results and non-GAAP ratios to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for "items of note". Refer to "How We Performed" or "How Our Businesses Performed" sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

2

These measures have been included in this document in accordance with the Office of the Superintendent of Financial Institutions Canada's (OSFI's) Capital Adequacy Requirements (CAR), Leverage Requirements (LR), and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the "Capital Position" section in the Bank's third quarter 2026 Management's Discussion and Analysis (MD&A) for further details.

3

For additional information about these metrics, refer to the Glossary in the Bank's third quarter 2026 MD&A, which is incorporated by reference.

4

Efficiency ratio – adjusted, net of ISE is calculated by dividing adjusted non‑interest expenses by adjusted total revenue, net of ISE. Adjusted total revenue, net of ISE – Q3 2026: $15,280 million, Q2 2026: $14,639 million, Q3 2025: $14,051 million, 2026 YTD: $44,926 million, 2025 YTD: $41,295 million.

5

Toronto Stock Exchange closing market price.

UPDATE ON THE REMEDIATION OF THE U.S. BANK SECRECY ACT/ANTI-MONEY LAUNDERING PROGRAM AND ENTERPRISE AML PROGRAM

As previously disclosed, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a resolution (the "Global Resolution") of previously disclosed investigations related to its U.S. BSA/AML program. The Bank and certain of its U.S. subsidiaries consented to orders with the Office of the Comptroller of the Currency ("OCC"), the Federal Reserve Board ("FRB"), and the Financial Crimes Enforcement Network ("FinCEN") and entered into plea agreements with the Department of Justice ("DOJ"), Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney's Office for the District of New Jersey. The full terms of the consent orders and plea agreements are available on the Bank's issuer profile on SEDAR+ at www.sedarplus.com.

The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting the requirements to remediate the Bank's U.S. BSA/AML program. In addition, the Bank is also undertaking remediation of the Bank's enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs ("Enterprise AML Program").

For additional information on the risks associated with the remediation of the Bank's U.S. BSA/AML program and the Bank's Enterprise AML Program, see the "Risk Factors That May Affect Future Results – Remediation of the Bank's U.S. BSA/AML Program and Enterprise AML Program" section of the 2025 MD&A.

Update on the Remediation of the U.S. AML Program
The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. The Bank continues to work on its management remediation actions (the term "management remediation actions" is not a regulatory definition and is considered by the Bank to consist of the root cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing and implementation of controls, as well as the hiring of resources) with significant work and important milestones remaining in calendar 2026 and calendar 2027 including the Suspicious Activity Report lookback per the OCC consent order which management expects to complete in calendar 2027. For fiscal 2026, the Bank expects U.S. BSA/AML remediation and related governance and control investments to be approximately US$550 million pre-tax6, higher than the previous guidance of US$500 million due to increased costs associated with lookback activities. All management remediation actions will be subject to demonstrated sustainability and validation by the Bank's internal audit function (with such activities currently planned for calendar 2026 and calendar 2027), as well as the review by the appointed monitor, and, ultimately, the review and approval of the Bank's U.S. banking regulators and the DOJ. Following such independent reviews, testing, and validation, there could be additional management remediation actions that would take place after calendar 2027 in which case the overall remediation timeline may be extended. In addition, as the Bank undertakes the lookback reviews, the Bank may be required to further expand the scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The following graph illustrates the Bank's expected remediation plan and progress on a calendar year basis, based on its work to date.

The Bank's remediation timeline is based on the Bank's current plans, as well as assumptions related to the duration of remediation activities, including the completion of lookback reviews. The Bank's ability to meet its planned remediation milestones assumes that the Bank will be able to successfully execute against its U.S. BSA/AML remediation program plan, which is subject to inherent risks and uncertainties including the Bank's ability to attract and retain key employees, the ability of third parties to deliver on their contractual obligations, the successful development and implementation of required technology solutions, and data availability to complete the required lookback reviews. Furthermore, the execution of the U.S. BSA/AML remediation plan, including these planned milestones, will not be entirely within the Bank's control because of various factors such as (i) the requirement to obtain regulatory approval or non-objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators and/or the monitor. As of the date hereof, the Bank believes that it and its applicable U.S. subsidiaries have taken such actions as are required of them to date under the terms of the consent orders and plea agreements and is not aware of them being in breach of the same. For information about the Bank's AML governance framework, see the "Managing Risk" section of the Bank's 2025 Annual Report.

While substantial work remains, the Bank is making progress on remediating and strengthening its U.S. BSA/AML program as previously disclosed including continued improvements through:

a more mature assessment of the U.S. Bank's inherent financial crime risk profile and increased frequency of transaction monitoring coverage assessments which together provide greater visibility into emerging and evolving risks, help ensure monitoring is aligned to those risks, and allow the Bank to more dynamically respond to those risks; enhanced anti-trafficking and fraud detection efforts through investigative partnerships, improving the Bank's ability to detect and respond to evolving financial crime threats; the rollout of new specialized financial crime risk training courses for colleagues in higher-risk business lines that are designed to enhance the expertise of front-line teams operating in areas with elevated AML risk and reinforce the consistent application of our policies, standards and controls; and continued progress by the third-party vendor against multiple populations of lookback reviews.

6

The total amount expected to be spent on remediation and governance and control investments is subject to inherent uncertainties and may vary based on (i) the scope of work in the U.S. BSA/AML remediation plan, which could change as a result of additional findings that are identified as work progresses, (ii) actual third party monitor and lookback review costs, which could vary from initial estimates and are not entirely within the control of the Bank, as well as (iii) the Bank's ability to successfully execute against the U.S. BSA/AML remediation program in accordance with the U.S. Banking segment's fiscal 2026 and medium‑term plan.

Going forward, the Bank's focus will be on continuing to remediate and strengthen its U.S. BSA/AML program, including:

further deployments of the new KYC platform; further deployments of machine learning and specialized AI; deployment of an enhanced currency transaction reporting platform; continued data enhancements with the deployment of dedicated Financial Crime Risk Management (FCRM) data environments which will create a single source of truth in support of advanced detection capabilities; continued enhancements to its financial crime risk assessment methodologies and processes; continued training and development of colleagues; and continued execution of lookback reviews as required under the OCC and FinCEN consent orders. Strengthening of the Bank's Enterprise AML Program
The Bank continues to undertake remediation of the Enterprise AML Program, including a range of management remediation and enhancement actions (the term "management remediation and enhancement actions" is not a regulatory definition and is considered by the Bank to consist of root cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing, and execution of controls, as well as the hiring of resources). While the Bank has made progress on this remediation work, it is a multi-year endeavour and the remediation work remains ongoing. The timing of completion of the remediation work will not be entirely within the Bank's control, and is subject to regulatory feedback, internal review, challenge and validation. As previously disclosed, following the end of the first quarter of fiscal 2025, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) commenced a review of certain remediation steps that the Bank has taken to date to address the FINTRAC violations. This review is ongoing, and subject to the outcome, may result in additional regulatory actions.

The remediation and enhancement of the Enterprise AML Program is exposed to similar risks as noted in respect of the remediation of the Bank's U.S. BSA/AML Program (see also "Remediation of the U.S. BSA/AML Program" above). In particular, as the Bank continues its remediation and improvement activities of the Enterprise AML Program, it expects an increase in identification of reportable transactions and/or events, which will add to the operational inventories in the Bank's FCRM investigations processing that the Bank currently faces, but is working towards remediating, across the Bank. In addition, on an ongoing basis, the Bank will continue to review and assess whether issues identified in one jurisdiction have an impact in other jurisdictions. Furthermore, the Bank's regulators or law enforcement agencies may identify other issues with the Bank's Enterprise AML Program, which may result in additional regulatory actions. These issues identified through the Bank's own review or by the Bank's regulators or law enforcement agencies may broaden the scope of the remediation and improvements required for the Enterprise AML Program.

While substantial work remains, the Bank is making progress on remediating and strengthening the Enterprise AML Program as previously disclosed, including:

advanced investigative effectiveness through enhanced automation and analytics; continued modernization of financial crime monitoring and screening capabilities; and strengthened financial crime risk management technology and workflow capabilities. Going forward, the Bank's focus will be on continuing to remediate and strengthen its Enterprise AML Program, including:

continued progress on clearing operational inventories; ongoing advancements in transaction monitoring capabilities, including monitoring coverage and effectiveness; and continued investment in supporting advanced analytics, machine learning, and AI opportunities within FCRM. HOW WE PERFORMED 

ECONOMIC SUMMARY AND OUTLOOK
The global outlook for the remainder of 2026 remains shaped by the ongoing oil price shock, which has renewed inflation concerns and added to growth headwinds. In China, weak domestic demand and disappointing second-quarter data point to a softer backdrop. Europe appears on track to improve modestly, supported by healthy labour markets, though elevated energy prices remain a constraint. Broadly, the global economy is adjusting to higher-for-longer interest rates and persistent inflation, creating difficult trade-offs for policymakers.

The U.S. economy is on track to outpace other G7 economies for a fourth consecutive year. TD Economics forecasts real GDP to expand by 2.2% in calendar 2026. Activity has been supported by continued AI-related capital spending and expansionary fiscal policy. Bolstered by tax cuts, consumer spending has held up in the face of higher energy prices. The U.S. labour market remains in an environment where both hiring and layoff rates are low, with employment growth running roughly in line with labour force growth. The unemployment rate has drifted lower over the last few months, reaching a thirteen-month low of 4.1% in July.

U.S. inflation is still above the Federal Reserve's 2% target, reflecting both the pass-through effects from tariffs and higher energy prices. As a result, the risk of policy rate increases has risen, with more Federal Reserve officials expressing a desire for tighter policy after a prolonged period of elevated inflation. TD Economics expects inflation pressures to ease as supply shocks fade, enabling the Federal Reserve to keep the policy rate unchanged at 3.5%-3.75% this year. The timing and pace of interest rate moves will depend on labour market trends and whether inflationary pressures prove more persistent than expected.

Canada's economy contracted marginally in late 2025 and early 2026, but TD Economics expects it to rebound solidly in the second calendar quarter of 2026. New U.S. tariffs on Canadian goods that followed the breakdown in trade talks pose a downside risk to growth, but the impact will depend on how long the tariffs are in place and the extent of retaliation. Canada's labour market has improved more than expected so far this year. A recent pickup in hiring, alongside modest labour force growth, has pushed the unemployment rate lower, reaching a two-year low of 6.4% in July. Looking ahead, growth is expected to be supported by a firming in business investment, public infrastructure and defense outlays, and steady consumer spending. Risks to the outlook remain highly sensitive to geopolitical events and U.S. trade policy.

The Bank of Canada has held the overnight rate at 2.25% so far this year after substantial easing since mid-2024. TD Economics expects the policy rate to stay unchanged through the remainder of 2026. With the economy in excess supply and growth expected to remain modest, inflation should remain close to the Bank of Canada's 2% target. A generally weaker U.S. dollar and a narrower gap between U.S. and Canadian short-term interest rates are expected to support the Canadian dollar as geopolitical tensions ease. TD Economics expects the Canadian dollar to remain in the 72-74 U.S. cent range over the next few quarters, although the outcome of U.S. trade policy will be a key determinant of timing and direction.

HOW THE BANK REPORTS
The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as "reported" results.

Non-GAAP and Other Financial Measures
In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios, supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as "adjusted" results, are utilized to assess the Bank's businesses and to measure the Bank's overall performance. To arrive at adjusted results, the Bank adjusts for "items of note" from reported results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted net interest margin, adjusted basic and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank's performance. Non-GAAP financial measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank's financial performance and position, and capital management measures depict the Bank's capital position, and both are explained in this document where they first appear.

Investment in The Charles Schwab Corporation ("Schwab") and Insured Deposit Account (IDA) Agreement
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale.

Prior to the sale, the Bank accounted for its investment in Schwab using the equity method. The U.S. Banking segment reflected the Bank's share of net income from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab. The Bank's share of Schwab's earnings available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank's 2025 Annual Consolidated Financial Statements.

Subsequent to the sale of the Bank's entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through the insured deposit account agreement ("Schwab IDA Agreement").

On May 4, 2023, the Bank and Schwab entered into an amended Schwab IDA Agreement, with an initial expiration of July 1, 2034. Pursuant to the Schwab IDA Agreement, the Bank makes sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts. Remaining deposits are designated as floating-rate obligations. The IDA deposit floor is set at US$60 billion.

Refer to Note 26 of the Bank's 2025 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.

The following table provides the operating results on a reported basis for the Bank. 

TABLE 2: OPERATING RESULTS – Reported

(millions of Canadian dollars)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Net interest income

$

9,296

$

8,861

$

8,526

$

26,946

$

24,517

Non-interest income

7,589

6,936

6,771

22,321

27,766

Total revenue

16,885

15,797

15,297

49,267

52,283

Provision for (recovery of) credit losses

917

1,001

971

2,957

3,524

Insurance service expenses

1,646

1,398

1,563

4,666

4,487

Non-interest expenses

8,475

8,372

8,522

25,600

24,731

Income before income taxes and share of net income from

investment in Schwab

5,847

5,026

4,241

16,044

19,541

Provision for (recovery of) income taxes

1,232

775

905

3,135

2,588

Share of net income from investment in Schwab

–

–

–

–

305

Net income – reported

4,615

4,251

3,336

12,909

17,258

Preferred dividends and distributions on other equity instruments

94

202

88

397

374

Net income available to common shareholders

$

4,521

$

4,049

$

3,248

$

12,512

$

16,884

The following table provides a reconciliation between the Bank's adjusted and reported results. For further details refer to the "How We Performed" or "How Our Businesses Performed" sections of this document.

TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income

(millions of Canadian dollars)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Operating results – adjusted

Net interest income1,2

$

9,337

$

8,904

$

8,581

$

27,074

$

24,709

Non-interest income3

7,589

7,133

7,033

22,518

21,073

Total revenue

16,926

16,037

15,614

49,592

45,782

Provision for (recovery of) credit losses

917

1,001

971

2,957

3,524

Insurance service expenses

1,646

1,398

1,563

4,666

4,487

Non-interest expenses4

8,441

8,339

8,124

25,343

24,015

Income before income taxes and share of net income from

investment in Schwab

5,922

5,299

4,956

16,626

13,756

Provision for (recovery of) income taxes5

1,251

1,131

1,085

3,571

2,976

Share of net income from investment in Schwab6

–

–

–

–

340

Net income – adjusted

4,671

4,168

3,871

13,055

11,120

Preferred dividends and distributions on other equity instruments

94

202

88

397

374

Net income available to common shareholders – adjusted

4,577

3,966

3,783

12,658

10,746

Pre-tax adjustments for items of note

Amortization of acquired intangibles7

(34)

(33)

(33)

(101)

(137)

Restructuring charges4

–

–

(333)

(200)

(496)

Acquisition and integration-related charges4

–

–

(32)

–

(118)

Impact from the terminated FHN acquisition-related capital hedging strategy1

(41)

(43)

(55)

(128)

(156)

Gain on sale of Schwab shares3

–

–

–

–

8,975

Balance sheet restructuring2,3

–

–

(262)

–

(2,318)

Federal Deposit Insurance Corporation (FDIC) special assessment4

–

–

–

44

–

Change in partnership share in the U.S. strategic cards portfolio3

–

(197)

–

(197)

–

Less: Impact of income taxes

Amortization of acquired intangibles

(9)

(8)

(8)

(25)

(25)

Restructuring charges

–

–

(85)

(52)

(126)

Acquisition and integration-related charges

–

–

(7)

–

(26)

Impact from the terminated FHN acquisition-related capital hedging strategy

(10)

(10)

(14)

(32)

(39)

Gain on sale of Schwab shares5

–

(288)

–

(288)

407

Balance sheet restructuring

–

–

(66)

–

(579)

FDIC special assessment

–

–

–

11

–

Change in partnership share in the U.S. strategic cards portfolio

–

(50)

–

(50)

–

Total adjustments for items of note

(56)

83

(535)

(146)

6,138

Net income available to common shareholders – reported

$

4,521

$

4,049

$

3,248

$

12,512

$

16,884

1

After the termination of the merger agreement between the Bank and FHN on May 4, 2023, the residual impact of the strategy is reversed through net interest income (NII) – Q3 2026: ($41) million, Q2 2026: ($43) million, 2026 YTD: ($128) million, Q3 2025: ($55) million, 2025 YTD: ($156) million, reported in the Corporate segment.

2

Adjusted net interest income excludes the following item of note:

i.

Balance sheet restructuring – 2025 YTD: $36 million in respect of U.S. Banking activities, reported in the U.S. Banking segment.

3

Adjusted non-interest income excludes the following items of note:

i.

The Bank sold common shares of Schwab and recognized a gain on the sale – 2025 YTD: $8,975 million, reported in the Corporate segment;

ii.

Balance sheet restructuring – Q3 2025: $262 million, 2025 YTD: $2,282 million in respect of U.S. Banking activities, reported in the U.S. Banking segment; and

iii.

Charge reflecting a change in the partnership share in the U.S. strategic cards portfolio, resulting in an adjustment to the corresponding program receivable – Q2 2026: $197 million, 2026 YTD: $197 million, reported in the U.S. Banking segment.

4

Adjusted non-interest expenses exclude the following items of note:

i.

Amortization of acquired intangibles – Q3 2026: $34 million, Q2 2026: $33 million, 2026 YTD: $101 million, Q3 2025: $33 million, 2025 YTD: $102 million, reported in the Corporate segment;

ii.

Restructuring charges – 2026 YTD: $200 million, Q3 2025: $333 million, 2025 YTD: $496 million, reported in the Corporate segment;

iii.

Acquisition and integration-related charges – Q3 2025: $32 million, 2025 YTD: $118 million, reported in the Wholesale Banking segment; and

iv.

FDIC special assessment – 2026 YTD: ($44) million, reported in the U.S. Banking segment.

5

Provision for (recovery of) income taxes includes a tax benefit of $288 million related to the Bank's gain on sale of Schwab shares in 2025, reported in the Corporate segment in the second quarter of fiscal 2026 upon the filing of the Bank's tax return. Refer to "Income Taxes" in the "Financial Results Overview" section in the Bank's third quarter 2026 MD&A for further details.

6

Adjusted share of net income from investment in Schwab excludes the following item of note on an after-tax basis. The earnings impact of this item was reported in the Corporate segment:

i.

Amortization of Schwab-related acquired intangibles – 2025 YTD: $35 million.

7

Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of acquired intangibles relating to the share of net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 4 and 6 for amounts.

TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE1

(Canadian dollars) 

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Basic earnings per share – reported

$

2.75

$

2.44

$

1.89

$

7.53

$

9.73

Adjustments for items of note

0.03

(0.05)

0.31

0.08

(3.54)

Basic earnings per share – adjusted

$

2.78

$

2.39

$

2.20

$

7.61

$

6.19

Diluted earnings per share – reported

$

2.74

$

2.43

$

1.89

$

7.50

$

9.72

Adjustments for items of note

0.03

(0.05)

0.31

0.09

(3.53)

Diluted earnings per share – adjusted

$

2.77

$

2.38

$

2.20

$

7.59

$

6.19

1

EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the period. Numbers may not add due to rounding.

Return on Common Equity
The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank's use of equity.

ROE for the business segments is calculated as the segment net income as a percentage of average allocated capital. The Bank's methodology for allocating capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated to the business segments was based on 11.5% CET1 Capital.

TABLE 5: RETURN ON COMMON EQUITY

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Average common equity

$

113,810

$

113,288

$

114,115

$

114,270

$

111,644

Net income available to common shareholders – reported

4,521

4,049

3,248

12,512

16,884

Items of note, net of income taxes

56

(83)

535

146

(6,138)

Net income available to common shareholders – adjusted

$

4,577

$

3,966

$

3,783

$

12,658

$

10,746

Return on common equity – reported

15.8

%

14.7

%

11.3

%

14.6

%

20.2

%

Return on common equity – adjusted

16.0

14.4

13.2

14.8

12.9

Return on Tangible Common Equity
Tangible common equity (TCE) is calculated as common shareholders' equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after adjusting for the after‑tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and adjusted ROTCE can be utilized in assessing the Bank's use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP ratios. 

TABLE 6: RETURN ON TANGIBLE COMMON EQUITY

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Average common equity

$

113,810

$

113,288

$

114,115

$

114,270

$

111,644

Average goodwill

18,842

18,584

18,652

18,777

19,035

Average imputed goodwill and intangibles on

investments in Schwab

–

–

–

–

2,047

Average other acquired intangibles1

272

303

405

306

445

Average related deferred tax liabilities

(239)

(240)

(225)

(242)

(232)

Average tangible common equity

94,935

94,641

95,283

95,429

90,349

Net income attributable to common

shareholders – reported

4,521

4,049

3,248

12,512

16,884

Amortization of acquired intangibles, net of income taxes

25

25

25

76

112

Net income attributable to common shareholders

adjusted for amortization of acquired intangibles,

net of income taxes

4,546

4,074

3,273

12,588

16,996

Other items of note, net of income taxes

31

(108)

510

70

(6,250)

Net income available to common shareholders – adjusted

$

4,577

$

3,966

$

3,783

$

12,658

$

10,746

Return on tangible common equity

19.0

%

17.7

%

13.6

%

17.6

%

25.2

%

Return on tangible common equity – adjusted

19.1

17.2

15.8

17.7

15.9

1

Excludes intangibles relating to software and asset servicing rights.

HOW OUR BUSINESSES PERFORMED

For management reporting purposes, the Bank's business operations and activities are organized around the following four key business segments: Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking. The Bank's other activities are grouped into the Corporate segment. Effective June 1, 2026, the Bank implemented a reorganization within the Canadian Personal and Commercial Banking segment, whereby Small Business Banking transitioned from Canadian Business Banking to Canadian Personal Banking. The reorganization does not impact the segment's reporting.

Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is adjusted. For further details, refer to the "How We Performed" section of this document, the "Business Focus" section in the Bank's 2025 MD&A, and Note 27 of the Bank's Annual Consolidated Financial Statements for the year ended October 31, 2025.

PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the respective segment.

Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $23 million, compared with $18 million in the prior quarter and $16 million in the third quarter last year.

The Bank's U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank's Interim Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in non-interest expenses, resulting in no impact to the Corporate segment's reported net income (loss). The net income included in the U.S. Banking segment includes only the portion of revenue and credit losses attributable to TD under the agreements.

Effective the first quarter of 2026, non-interest income within U.S. Banking is adjusted for the Bank's share of losses from community-based tax-advantaged investments accounted for using the equity method which are reclassified to provision for income taxes. This allows the Bank to measure the effective tax rate for U.S. Banking consistently with similar institutions. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results is reversed in the Corporate segment. Comparative amounts have been reclassified to conform with the presentation adopted in the first quarter of 2026.

On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Prior to the sale, the Bank accounted for its investment in Schwab using the equity method and the share of net income from investment in Schwab was reported in the U.S. Banking segment. Amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab were recorded in the Corporate segment. Beginning in the third quarter of fiscal 2025, the U.S. Banking segment no longer includes contributions from Schwab and consequently discussions of the U.S. Banking segment's performance exclude Schwab.

TABLE 7: CANADIAN PERSONAL AND COMMERCIAL BANKING

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Net interest income

$

4,528

$

4,289

$

4,239

$

13,211

$

12,397

Non-interest income

989

967

1,002

2,983

2,984

Total revenue

5,517

5,256

5,241

16,194

15,381

Provision for (recovery of) credit losses – impaired

446

465

376

1,335

1,263

Provision for (recovery of) credit losses – performing

32

33

87

77

343

Total provision for (recovery of) credit losses

478

498

463

1,412

1,606

Non-interest expenses

2,131

2,088

2,066

6,366

6,204

Provision for (recovery of) income taxes

813

745

759

2,352

2,119

Net income

$

2,095

$

1,925

$

1,953

$

6,064

$

5,452

Selected volumes and ratios

Return on common equity1

32.3

%

31.3

%

32.5

%

31.9

%

31.0

%

Net interest margin (including on securitized assets)2

2.88

2.85

2.83

2.85

2.82

Efficiency ratio

38.6

39.7

39.4

39.3

40.3

Number of Canadian retail branches at period end

1,037

1,042

1,054

1,037

1,054

Average number of full-time equivalent staff3

33,355

33,159

32,698

33,394

32,370

1

Capital allocated to the business segment was 11.5% CET1 Capital.

2

Net interest margin is calculated by dividing net interest income by average interest-earning assets. Average interest-earning assets used in the calculation of net interest margin is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document and the Glossary in the Bank's third quarter 2026 MD&A for additional information about these metrics.

3

Effective the third quarter of 2025, call center operations have been realigned from the Corporate segment to the businesses, providing end to end ownership of customer experience. The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.

Quarterly comparison – Q3 2026 vs. Q3 2025
Canadian Personal and Commercial Banking net income for the quarter was $2,095 million, an increase of $142 million, or 7%, compared with the third quarter last year, primarily reflecting higher revenue, partially offset by higher non-interest expenses. The annualized ROE for the quarter was 32.3%, compared with 32.5% in the third quarter last year.

Revenue for the quarter was $5,517 million, an increase of $276 million, or 5%, compared with the third quarter last year. Net interest income was $4,528 million, an increase of $289 million, or 7%, primarily reflecting volume growth and higher margins. Average loan volumes increased $30 billion, or 5%, reflecting 4% growth in personal loans and 8% growth in business loans. Average deposit volumes increased $12 billion, or 2%, reflecting 1% growth in personal deposits and 5% growth in business deposits. Net interest margin was 2.88%, an increase of 5 basis points (bps), primarily due to higher margins on deposits and loans, partially offset by changes in balance sheet mix. Non-interest income was $989 million, a decrease of $13 million, or 1%, compared with the third quarter last year.

PCL for the quarter was $478 million, an increase of $15 million compared with the third quarter last year. PCL – impaired was $446 million, an increase of $70 million, or 19%, largely reflecting credit migration in the consumer lending portfolios. PCL – performing was $32 million, a decrease of $55 million compared with the third quarter last year. The performing provisions this quarter reflect credit migration and volume growth. Total PCL as an annualized percentage of credit volume was 0.30%, a decrease of 1 basis point (bp) compared with the third quarter last year.

Non-interest expenses for the quarter were $2,131 million, an increase of $65 million, or 3%, compared with the third quarter last year, primarily reflecting higher employee-related expenses.

The efficiency ratio for the quarter was 38.6%, compared with 39.4% in the third quarter last year.

Quarterly comparison – Q3 2026 vs. Q2 2026
Canadian Personal and Commercial Banking net income for the quarter was $2,095 million, an increase of $170 million, or 9%, compared with the prior quarter, primarily reflecting higher revenue, partially offset by higher non-interest expenses. The annualized ROE for the quarter was 32.3%, compared with 31.3% in the prior quarter.

Revenue increased $261 million, or 5%, compared with the prior quarter. Net interest income increased $239 million, or 6%, primarily reflecting more days in the third quarter and higher margins. Average loan volumes increased $6 billion, or 1%, reflecting 1% growth in personal loans and 2% growth in business loans. Average deposit volumes increased $4 billion, or 1%, reflecting 1% growth in personal deposits and 1% growth in business deposits. Net interest margin was 2.88%, an increase of 3 bps, primarily due to higher margins on deposits and loans. As we look forward to the fourth quarter, based on current rate and competitive market dynamics, we expect net interest margin to modestly increase7. Non-interest income increased $22 million, or 2%, compared with the prior quarter, reflecting business growth.

PCL for the quarter was $478 million, a decrease of $20 million compared with the prior quarter. PCL – impaired was $446 million, a decrease of $19 million, or 4%, largely reflecting lower provisions in the commercial lending portfolio. PCL – performing was $32 million, a decrease of $1 million compared with the prior quarter. The performing provisions this quarter reflect credit migration and volume growth. Total PCL as an annualized percentage of credit volume was 0.30%, a decrease of 3 bps compared with the prior quarter.

Non-interest expenses increased $43 million, or 2%, compared with the prior quarter, primarily reflecting higher employee-related expenses and other operating expenses.

The efficiency ratio was 38.6%, compared with 39.7% in the prior quarter.

Year-to-date comparison – Q3 2026 vs. Q3 2025
Canadian Personal and Commercial Banking net income for the nine months ended July 31, 2026, was $6,064 million, an increase of $612 million, or 11%, compared with the same period last year, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses. The annualized ROE for the period was 31.9%, compared with 31.0% in the same period last year.

Revenue for the period was $16,194 million, an increase of $813 million, or 5%, compared with the same period last year. Net interest income was $13,211 million, an increase of $814 million, or 7%, compared with the same period last year, primarily reflecting volume growth and higher margins. Average loan volumes increased $32 billion, or 5%, reflecting 5% growth in personal loans and 7% growth in business loans. Average deposit volumes increased $13 billion, or 3%, reflecting 2% growth in personal deposits and 5% growth in business deposits. Net interest margin was 2.85%, an increase of 3 bps, primarily due to higher margins on deposits and loans, partially offset by changes in balance sheet mix. Non-interest income was $2,983 million, relatively flat compared with the same period last year.

PCL was $1,412 million, a decrease of $194 million compared with the same period last year. PCL – impaired was $1,335 million, an increase of $72 million, or 6%, reflecting credit migration in the consumer lending portfolios, partially offset by lower provisions in the commercial lending portfolio. PCL – performing was $77 million, a decrease of $266 million compared with the same period last year. The current year performing provisions were largely related to credit migration in the consumer lending portfolios and volume growth, partially offset by the impact of a model update in the other personal lending portfolios. Total PCL as an annualized percentage of credit volume was 0.30%, a decrease of 7 bps compared with the same period last year.

Non-interest expenses were $6,366 million, an increase of $162 million, or 3%, compared with the same period last year, reflecting higher employee-related expenses.

The efficiency ratio was 39.3%, compared with 40.3% for the same period last year.

7

The Bank's Q4 2026 net interest margin expectations for the segment are based on the Bank's assumptions regarding factors such as Bank of Canada rate actions, competitive market dynamics, and deposit reinvestment rates and maturity profiles, and are subject to inherent risks and uncertainties, including those set out in the "Risk Factors That May Affect Future Results" section of the Bank's second quarter 2026 MD&A and third quarter 2026 MD&A.

TABLE 8: U.S. BANKING

(millions of dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

Canadian Dollars

2026

2026

2025

2026

2025

Net interest income – reported

$

3,352

$

3,196

$

3,101

$

9,844

$

9,203

Net interest income – adjusted1,2

3,352

3,196

3,101

9,844

9,239

Non-interest income – reported3

814

588

541

2,191

139

Non-interest income – adjusted1,3,4

814

785

803

2,388

2,421

Total revenue – reported

4,166

3,784

3,642

12,035

9,342

Total revenue – adjusted1

4,166

3,981

3,904

12,232

11,660

Provision for (recovery of) credit losses – impaired

326

332

330

1,052

1,168

Provision for (recovery of) credit losses – performing

(9)

10

(13)

(98)

42

Total provision for (recovery of) credit losses

317

342

317

954

1,210

Non-interest expenses – reported

2,554

2,476

2,381

7,498

7,099

Non-interest expenses – adjusted1,5

2,554

2,476

2,381

7,542

7,099

Provision for (recovery of) income taxes – reported3

221

153

184

656

88

Provision for (recovery of) income taxes – adjusted1,3

221

203

250

695

667

U.S. Banking net income excluding Schwab – reported

1,074

813

760

2,927

945

U.S. Banking net income excluding Schwab – adjusted1

1,074

960

956

3,041

2,684

Share of net income from investment in Schwab6,7

–

–

–

–

277

U.S. Banking net income – reported

$

1,074

$

813

$

760

$

2,927

$

1,222

U.S. Banking net income – adjusted1

1,074

960

956

3,041

2,961

U.S. Dollars

Net interest income – reported

$

2,403

$

2,332

$

2,256

$

7,107

$

6,552

Net interest income – adjusted1,2

2,403

2,332

2,256

7,107

6,577

Non-interest income – reported3

584

430

396

1,583

121

Non-interest income – adjusted1,3,4

584

574

584

1,727

1,724

Total revenue – reported

2,987

2,762

2,652

8,690

6,673

Total revenue – adjusted1

2,987

2,906

2,840

8,834

8,301

Provision for (recovery of) credit losses – impaired

234

243

240

761

827

Provision for (recovery of) credit losses – performing

(7)

7

(9)

(72)

33

Total provision for (recovery of) credit losses

227

250

231

689

860

Non-interest expenses – reported

1,830

1,807

1,732

5,415

5,051

Non-interest expenses – adjusted1,5

1,830

1,807

1,732

5,447

5,051

Provision for (recovery of) income taxes – reported3

159

110

135

473

68

Provision for (recovery of) income taxes – adjusted1,3

159

147

182

502

475

U.S. Banking net income excluding Schwab – reported

771

595

554

2,113

694

U.S. Banking net income excluding Schwab – adjusted1

771

702

695

2,196

1,915

Share of net income from investment in Schwab6,7

–

–

–

–

196

U.S. Banking net income – reported

$

771

$

595

$

554

$

2,113

$

890

U.S. Banking net income – adjusted1

771

702

695

2,196

2,111

Selected volumes and ratios

U.S. Banking return on common equity excluding Schwab – reported8

10.2

%

8.2

%

7.1

%

9.4

%

3.0

%

U.S. Banking return on common equity excluding Schwab – adjusted1,8

10.2

9.6

8.9

9.8

8.2

U.S. Banking return on common equity – reported8

10.2

8.2

7.1

9.4

3.7

U.S. Banking return on common equity – adjusted1,8

10.2

9.6

8.9

9.8

8.7

Net interest margin1,9

3.47

3.41

3.19

3.42

3.02

Net interest margin – adjusted1,9

3.47

3.41

3.19

3.42

3.03

Efficiency ratio – reported3

61.3

65.4

65.3

62.3

75.7

Efficiency ratio – adjusted1,3

61.3

62.2

61.0

61.7

60.8

Assets under administration (billions of U.S. dollars)10

$

47

$

46

$

46

$

47

$

46

Assets under management (billions of U.S. dollars)10

12

11

10

12

10

Number of U.S. banking stores

1,048

1,048

1,100

1,048

1,100

Average number of full-time equivalent staff

30,436

30,326

28,817

30,212

28,565

1

For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document, and the Glossary in the Bank's third quarter 2026 MD&A.

2

Adjusted net interest income excludes the following item of note:

i.

Balance sheet restructuring (impact of loan hedge rebalancing before the close of the correspondent loan sale) – 2025 YTD: $36 million or US$25 million ($26 million or US$19 million after tax).

3

Effective the first quarter of 2026, non-interest income within U.S. Banking is adjusted for the Bank's share of losses from community-based tax-advantaged investments accounted for using the equity method which are reclassified to provision for income taxes. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results is reversed in the Corporate segment. The adjustment for the quarter was $185 million (US$132 million), compared with $179 million (US$131 million) in the prior quarter, and $165 million (US$120 million) in the third quarter last year, 2026 YTD: $548 million (US$395 million); 2025 YTD: $490 million (US$349 million). Comparative amounts have been reclassified to conform with the presentation adopted effective the first quarter of 2026.

4

Adjusted non-interest income excludes the following items of note:

i.

Balance sheet restructuring – Q3 2025: $262 million or US$188 million ($196 million or US$141 million after tax), 2025 YTD: $2,282 million or US$1,603 million ($1,713 million or US$1,202 million after tax).

ii.

Charge reflecting a change in the partnership share in the U.S. strategic cards portfolio, resulting in an adjustment to the corresponding program receivable – Q2 2026: $197 million or US$144 million ($147 million or US$107 million after tax), 2026 YTD: $197 million or US$144 million ($147 million or US$107 million after tax).

5

Adjusted non-interest expenses exclude the following item of note:

i.

FDIC special assessment – 2026 YTD: ($44) million or US($32) million (($33) million or US($24) million after tax).

6

The Bank's share of Schwab's earnings was reported with a one-month lag. Refer to Note 7 of the Bank's third quarter 2026 Interim Consolidated Financial Statements for further details.

7

The after-tax amount for amortization of acquired intangibles was recorded in the Corporate segment.

8

Capital allocated to the business segment was 11.5% CET1 Capital.

9

Net interest margin is calculated by dividing U.S. Banking segment's net interest income by average interest-earning assets excluding the impact related to sweep deposits arrangements and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Net interest income and average interest-earning assets used in the calculation are non-GAAP financial measures.

10

For additional information about this metric, refer to the Glossary in the Bank's third quarter 2026 MD&A.

On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Discussions of the U.S. Banking segment's performance exclude Schwab. Refer to the "Significant Events" section of the Bank's 2025 Annual Report for further details.

During the second quarter of fiscal 2026, the Bank completed the conversion of its Nordstrom credit card portfolio onto the Bank's servicing platform and received a greater share of revenue and credit losses. The Bank incurred a charge of $197 million (US$144 million) pre-tax, in the second quarter of fiscal 2026, reflecting an adjustment of amounts which will no longer be recovered from Nordstrom for expected credit losses ("receivable adjustment").

Aligned with the U.S. Banking segment's priority to optimize its store network as outlined in the Bank's 2025 MD&A and subject to regulatory approval, U.S. Banking expects to open 100 new stores by the end of calendar 20288. 

Quarterly comparison – Q3 2026 vs. Q3 2025
U.S. Banking reported and adjusted net income for the quarter was $1,074 million (US$771 million). Reported net income increased $314 million (US$217 million), or 41% (39% in U.S. dollars), compared with the third quarter last year, reflecting the impact of U.S. balance sheet restructuring activities, higher deposit and loan margins, and an adjustment for client deposit rates in the prior year, partially offset by higher expenses. Adjusted net income increased $118 million (US$76 million), or 12% (11% in U.S. dollars), compared with the third quarter last year, reflecting higher deposit and loan margins, and an adjustment for client deposit rates in the prior year, partially offset by higher expenses. The annualized ROE for the quarter was 10.2%, compared with 7.1%, on a reported basis, and 8.9%, on an adjusted basis, in the third quarter last year.

Reported and adjusted revenue for the quarter was US$2,987 million, an increase of US$335 million, or 13%, on a reported basis, and an increase of US$147 million, or 5%, on an adjusted basis, compared with the third quarter last year. Net interest income of US$2,403 million, increased US$147 million, or 7%, largely reflecting higher loan margins including higher revenue due to the strategic card platform conversion, higher deposit margins, and an adjustment for client deposit rates in the prior year. Net interest margin of 3.47%, increased 28 bps, due to higher loan margins including higher revenue due to the strategic card platform conversion, and higher deposit margins. Non-interest income was US$584 million, an increase of US$188 million, or 47%, on a reported basis, compared with the third quarter last year, reflecting the impact of U.S. balance sheet restructuring activities in the prior year. On an adjusted basis, non-interest income was flat, compared with the third quarter last year.

Average loan volumes decreased US$6 billion, or 4%, compared with the third quarter last year. Personal loans increased 1% and business loans decreased 8%, reflecting U.S. balance sheet restructuring activities. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, core average loan volumes increased US$4 billion, or 3%9,10. Average deposit volumes decreased US$16 billion, or 5%, reflecting a 13% decrease in sweep deposits, a 3% decrease in business deposits, and a 2% decrease in personal deposits.

Assets under administration (AUA) were US$47 billion as at July 31, 2026, an increase of US$1 billion, or 2%, compared with the third quarter last year, and assets under management (AUM) were US$12 billion as of July 31, 2026, an increase of US$2 billion, or 20%, compared with the third quarter last year, both reflecting net asset growth and market appreciation.

PCL for the quarter was US$227 million, a decrease of US$4 million compared with the third quarter last year. PCL – impaired was US$234 million, a decrease of US$6 million, or 3%, reflecting lower provisions in the commercial lending portfolio, partially offset by credit migration in the consumer lending portfolios. PCL – performing was a recovery of US$7 million, compared with a recovery of US$9 million in the third quarter last year. The current quarter performing recovery was recorded in both the consumer and commercial lending portfolios. U.S. Banking PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.53%, an increase of 1 bp compared with the third quarter last year.

Non-interest expenses for the quarter were US$1,830 million, an increase of US$98 million, or 6%, compared to the third quarter last year, reflecting conversion costs associated with the strategic card portfolio, higher employee-related expenses, and higher spend supporting business growth initiatives, partially offset by lower governance and control investments, including costs of US$125 million for U.S. BSA/AML remediation.

The efficiency ratio for the quarter was 61.3%, compared with 65.3%, on a reported basis, and 61.0%, on an adjusted basis, in the third quarter last year.

Quarterly comparison – Q3 2026 vs. Q2 2026
U.S. Banking reported and adjusted net income for the quarter was $1,074 million (US$771 million). Reported net income increased $261 million (US$176 million), or 32% (30% in U.S. dollars), compared with the prior quarter, reflecting the impact of additional days in the current quarter, higher deposit and loan margins, the receivable adjustment in the U.S. strategic cards portfolio in the prior quarter, and lower PCL, partially offset by higher expenses. Adjusted net income increased $114 million (US$69 million), or 12% (10% in U.S. dollars), compared to the prior quarter, reflecting the impact of additional days in the current quarter, higher deposit and loan margins, and lower PCL, partially offset by higher expenses. The annualized ROE for the quarter was 10.2%, compared with 8.2%, on a reported basis, and 9.6%, on an adjusted basis, in the prior quarter.

Reported and adjusted revenue for the quarter was US$2,987 million, an increase of US$225 million, or 8%, on a reported basis, and an increase of US$81 million, or 3%, on an adjusted basis, compared with the prior quarter. Net interest income of US$2,403 million, increased US$71 million, or 3%, largely reflecting the impact of additional days in the third quarter, higher loan margins including higher revenue due to the strategic card platform conversion, and higher deposit margins. Net interest margin of 3.47%, increased 6 bps, due to higher loan margins including higher revenue due to the strategic card platform conversion, and higher deposit margins. Net interest margin is expected to modestly increase in the fourth quarter of fiscal 202611. Non-interest income was US$584 million, an increase of US$154 million, or 36%, on a reported basis, compared with the prior quarter, reflecting the receivable adjustment in the U.S. strategic cards portfolio in the prior quarter, and higher fee income. On an adjusted basis, non-interest income increased US$10 million, or 2%, compared with prior quarter, reflecting higher fee income.

Average loan volumes in personal and business loans, were both flat, compared with the prior quarter. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, core average loan volumes increased US$1 billion, or 1%9,10. Average deposit volumes decreased US$4 billion, or 1%, compared with the prior quarter, reflecting a 2% decrease in sweep deposits, and a 1% decrease in personal deposits. Business deposits were flat compared to the prior quarter.

AUA were US$47 billion as at July 31, 2026, an increase of US$1 billion, or 2%, compared with the prior quarter, and AUM were US$12 billion as at July 31, 2026, an increase of US$1 billion, or 9%, compared with the prior quarter, both reflecting net asset growth and market appreciation.

8

Any new store opening is subject to approval by the OCC and the targeted number of new stores is based on assumptions regarding the availability of appropriate real estate in the geographies currently identified by management and successful execution of management's store optimization plan, and other variables, and is subject to inherent risks and uncertainties, including those set out in the "Risk Factors That May Affect Future Results" section of this document.

9

Loan portfolios identified for sale or run-off include the Point-of-Sale finance business which services third party retailers, correspondent lending, export and import lending, commercial auto dealer portfolio, and other non-core portfolios. Q3 2026 average loan volumes: US$173 billion (Q2 2026: US$173 billion; 2026 YTD: US$174 billion; Q3 2025: US$180 billion; 2025 YTD: US$186 billion). Q3 2026 average loan volumes of loan portfolios identified for sale or run-off: US$8 billion (Q2 2026: US$9 billion; 2026 YTD: US$10 billion; Q3 2025: US$19 billion; 2025 YTD: US$26 billion). Q3 2026 average loan volumes excluding loan portfolios identified for sale or run-off: US$165 billion (Q2 2026: US$164 billion; 2026 YTD: US$164 billion; Q3 2025: US$161 billion; 2025 YTD: US$160 billion).

10

For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document.

11

The Bank's Q4 2026 net interest margin expectations for the segment are based on the Bank's assumptions regarding interest rates, deposit reinvestment rates, average asset levels, execution of planned restructuring opportunities, and other variables, and are subject to inherent risks and uncertainties, including those set out in the "Risk Factors That May Affect Future Results" section in the Bank's third quarter 2026 MD&A.

PCL for the quarter was US$227 million, a decrease of US$23 million compared with the prior quarter. PCL – impaired was US$234 million, a decrease of US$9 million, or 4%, reflecting lower provisions in the commercial lending portfolio. PCL – performing was a recovery of US$7 million, compared with a build of US$7 million in the prior quarter. The current quarter performing recovery was recorded in both the consumer and commercial lending portfolios. U.S. Banking PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.53%, a decrease of 7 bps compared with the prior quarter.

Non-interest expenses for the quarter were US$1,830 million, an increase of US$23 million, or 1%, compared with the prior quarter, reflecting conversion costs associated with the strategic card portfolio, and higher employee-related expenses, partially offset by lower governance and control investments, including costs for U.S. BSA/AML remediation.

The efficiency ratio for the quarter was 61.3%, compared with 65.4%, on a reported basis, and 62.2%, on an adjusted basis, in the prior quarter.

Year-to-date comparison – Q3 2026 vs. Q3 2025
U.S. Banking reported net income for the nine months ended July 31, 2026, was $2,927 million (US$2,113 million), an increase of $1,982 million (US$1,419 million), compared with the same period last year, reflecting the impact of U.S. balance sheet restructuring activities, lower PCL, and the expense recovery of the FDIC special assessment charge, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation, and the receivable adjustment in the U.S. strategic cards portfolio. U.S. Banking adjusted net income was $3,041 million (US$2,196 million), an increase of $357 million (US$281 million), or 13% (15% in U.S. dollars), reflecting the impact of U.S. balance sheet restructuring activities and lower PCL, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation. The reported and adjusted annualized ROE for the period were 9.4% and 9.8%, respectively, compared with 3.0% and 8.2%, respectively, in the same period last year.

Reported revenue for the period was US$8,690 million, an increase of US$2,017 million, or 30%, compared with the same period last year. On an adjusted basis, revenue for the period was US$8,834 million, an increase of US$533 million, or 6%, compared with the same period last year. Reported and adjusted net interest income of US$7,107 million, increased US$555 million, or 8%, on a reported basis, and increased US$530 million, or 8%, on an adjusted basis, reflecting higher loan margins including higher revenue due to the strategic card platform conversion, higher deposit margins, the impact of U.S. balance sheet restructuring activities, and an adjustment for client deposit rates as well as the deferred cost adjustment in the prior year. Net interest margin of 3.42%, increased 40 bps, and increased 39 bps on an adjusted basis, both due to higher loan margins including higher revenue due to the strategic card platform conversion, higher deposit margins, and U.S. balance sheet restructuring activities. Reported non-interest income of US$1,583 million, increased US$1,462 million, primarily reflecting the impact of U.S. balance sheet restructuring activities in the prior year, partially offset by the receivable adjustment in the U.S. strategic cards portfolio. On an adjusted basis, non-interest income of US$1,727 million, was relatively flat, compared with the same period last year.

Average loan volumes for the period decreased US$12 billion, or 7%, compared with the same period last year, reflecting a 10% decrease in business loans and a 3% decrease in personal loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, average loan volumes for the period increased US$4 billion, or 2%, compared with the same period last year9,10. Average deposit volumes decreased US$16 billion, or 5%, reflecting a 13% decrease in sweep deposits, a 2% decrease in personal deposits, and a 2% decrease in business deposits, compared with the same period last year.

PCL was US$689 million, a decrease of US$171 million compared with the same period last year. PCL – impaired was US$761 million, a decrease of US$66 million, or 8%, largely reflecting lower provisions in the commercial lending portfolio. PCL – performing was a recovery of US$72 million, compared with a build of US$33 million in the same period last year. The current year performing recovery reflects lower volume and an update to the macroeconomic outlook, partially offset by credit migration in both the consumer and commercial lending portfolios. U.S. Banking PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.54%, a decrease of 9 bps, compared with the same period last year.

Reported non-interest expenses for the period were US$5,415 million, an increase of US$364 million, or 7%, compared with the same period last year, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, higher employee-related expenses, spend supporting business growth initiatives, and conversion costs associated with the strategic card portfolio, partially offset by the expense recovery of the FDIC special assessment charge. On an adjusted basis, non-interest expenses for the period were US$5,447 million, increased US$396 million, or 8%, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, higher employee-related expenses, spend supporting business growth initiatives, and conversion costs associated with the strategic card portfolio.

The reported and adjusted efficiency ratios for the period were 62.3% and 61.7%, respectively, compared with 75.7% and 60.8%, respectively, for the same period last year. 

TABLE 9: WEALTH MANAGEMENT AND INSURANCE

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Net interest income

$

466

$

423

$

373

$

1,295

$

1,104

Non-interest income

3,619

3,355

3,300

10,474

9,670

Total revenue

4,085

3,778

3,673

11,769

10,774

Insurance service expenses1

1,646

1,398

1,563

4,666

4,487

Non-interest expenses

1,296

1,249

1,155

3,803

3,459

Provision for (recovery of) income taxes

302

294

252

865

738

Net income

$

841

$

837

$

703

$

2,435

$

2,090

Selected volumes and ratios

Return on common equity

49.0

%

51.2

%

44.7

%

48.5

%

44.7

%

Return on common equity – Wealth Management2

72.5

65.0

62.4

68.0

60.7

Return on common equity – Insurance

23.1

35.9

24.7

27.1

26.4

Efficiency ratio

31.7

33.1

31.4

32.3

32.1

Efficiency ratio, net of ISE3

53.1

52.5

54.7

53.5

55.0

Assets under administration (billions of Canadian dollars)4

$

831

$

797

$

709

$

831

$

709

Assets under management (billions of Canadian dollars)5

644

617

572

644

572

Average number of full-time equivalent staff

16,092

16,023

15,443

15,995

15,271

1

Includes estimated losses related to catastrophe claims – Q3 2026: $117 million, Q2 2026: nil, Q3 2025: $36 million, 2026 YTD: $124 million, 2025 YTD: $86 million.

2

Capital allocated to the business was 11.5% CET1 Capital.

3

Efficiency ratio, net of ISE is calculated by dividing non-interest expenses by total revenue, net of ISE. Total revenue, net of ISE – Q3 2026: $2,439 million, Q2 2026: $2,380 million, Q3 2025: $2,110 million, 2026 YTD: $7,103 million, 2025 YTD: $6,287 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document and the Glossary in the Bank's third quarter 2026 MD&A for additional information about this metric.

4

Includes AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment.

5

Effective the first quarter of 2026, comparative amounts have been restated for alignment with the presentation adopted in the current period.

Quarterly comparison – Q3 2026 vs. Q3 2025
Wealth Management and Insurance net income for the quarter was $841 million, an increase of $138 million, or 20%, compared with the third quarter last year, reflecting Wealth Management net income of $653 million, an increase of $132 million, or 25%, compared with the third quarter last year, and Insurance net income of $188 million, an increase of $6 million, or 3%, compared with the third quarter last year. The annualized ROE for the quarter was 49.0%, compared with 44.7% in the third quarter last year. Wealth Management annualized ROE for the quarter was 72.5%, compared with 62.4% in the third quarter last year, and Insurance annualized ROE for the quarter was 23.1% compared with 24.7% in the third quarter last year.

Revenue for the quarter was $4,085 million, an increase of $412 million, or 11%, compared with the third quarter last year. Non‑interest income was $3,619 million, an increase of $319 million, or 10%, reflecting higher fee-based revenue from asset growth and higher insurance earned premiums. Net interest income was $466 million, an increase of $93 million, or 25%, compared with the third quarter last year, reflecting higher deposit volumes.

AUA were $831 billion as at July 31, 2026, an increase of $122 billion, or 17%, and AUM were $644 billion as at July 31, 2026, an increase of $72 billion, or 13%, compared with the third quarter last year, both reflecting market appreciation and net asset growth.

Insurance service expenses for the quarter were $1,646 million, an increase of $83 million or 5%, compared with the third quarter last year, mainly driven by higher estimated losses from catastrophe claims.

Non‑interest expenses for the quarter were $1,296 million, an increase of $141 million, or 12%, compared with the third quarter last year, mainly reflecting higher variable compensation commensurate with higher revenue and increased employee-related expenses.

The efficiency ratio for the quarter was 31.7%, compared with 31.4% in the third quarter last year. The efficiency ratio, net of ISE for the quarter was 53.1%, compared with 54.7% in the third quarter last year.

Quarterly comparison – Q3 2026 vs. Q2 2026
Wealth Management and Insurance net income for the quarter was $841 million, relatively flat compared with the prior quarter, reflecting Wealth Management net income of $653 million, an increase of $95 million or 17% compared with the prior quarter, and Insurance net income of $188 million, a decrease of $91 million, or 33%, compared with the prior quarter. The annualized ROE for the quarter was 49.0%, compared with 51.2% in the prior quarter. Wealth Management annualized ROE for the quarter was 72.5%, compared with 65.0% in the prior quarter, and Insurance annualized ROE for the quarter was 23.1%, compared with 35.9% in the prior quarter.

Revenue increased $307 million, or 8%, compared with the prior quarter. Non‑interest income increased $264 million, or 8%, mainly reflecting the impact of more days in the third quarter, fee-based revenue growth and transaction revenue.

AUA increased $34 billion, or 4%, and AUM increased $27 billion, or 4%, compared with the prior quarter, both reflecting market appreciation.

Insurance service expenses increased $248 million, or 18%, compared with the prior quarter, mainly driven by higher estimated losses from catastrophe claims and higher claims frequency.

Non‑interest expenses increased $47 million, or 4%, compared with the prior quarter, mainly reflecting higher variable compensation commensurate with higher revenue.

The efficiency ratio for the quarter was 31.7%, compared with 33.1% in the prior quarter. The efficiency ratio, net of ISE, for the quarter was 53.1%, compared with 52.5% in the prior quarter.

Year-to-date comparison – Q3 2026 vs. Q3 2025
Wealth Management and Insurance net income for the nine months ended July 31, 2026, was $2,435 million, an increase of $345 million, or 17%, compared with the same period last year, reflecting Wealth Management net income of $1,785 million, an increase of $272 million, or 18%, compared with the same period last year, and Insurance net income of $650 million, an increase of $73 million, or 13%, compared with the same period last year. The annualized ROE for the period was 48.5%, compared with 44.7% in the same period last year. Wealth Management annualized ROE for the period was 68.0%, compared with 60.7% in the same period last year, and Insurance annualized ROE for the period was 27.1%, compared with 26.4% in the same period last year.

Revenue for the period was $11,769 million, an increase of $995 million, or 9%, compared with the same period last year. Non‑interest income increased $804 million, or 8%, reflecting higher insurance earned premiums, fee‑based revenue from asset growth, and transaction revenue. Net interest income increased $191 million, or 17%, primarily reflecting higher deposit volumes.

Insurance service expenses were $4,666 million, an increase of $179 million, or 4%, compared with the same period last year, primarily driven by increased claims severity, higher estimated losses from catastrophe claims and higher costs due to business growth initiatives.

Non‑interest expenses were $3,803 million, an increase of $344 million, or 10%, compared with the same period last year, reflecting higher variable compensation commensurate with higher revenue, increased employee‑related expenses and spend supporting business growth initiatives.

The efficiency ratio for the period was 32.3%, compared with 32.1% for the same period last year. The efficiency ratio, net of ISE, for the period was 53.5%, compared with 55.0% in the same period last year.

TABLE 10: WHOLESALE BANKING

(millions of Canadian dollars, except as noted)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Net interest income (loss) (TEB)

$

270

$

276

$

110

$

471

$

48

Non-interest income

2,311

2,117

1,953

6,973

6,144

Total revenue

2,581

2,393

2,063

7,444

6,192

Provision for (recovery of) credit losses – impaired

6

80

63

302

157

Provision for (recovery of) credit losses – performing

35

(2)

8

(11)

109

Total provision for (recovery of) credit losses

41

78

71

291

266

Non-interest expenses – reported

1,594

1,509

1,493

4,666

4,489

Non-interest expenses – adjusted1,2

1,594

1,509

1,461

4,666

4,371

Provision for (recovery of) income taxes – reported (TEB)

203

194

101

571

321

Provision for (recovery of) income taxes – adjusted (TEB)1

203

194

108

571

347

Net income – reported

$

743

$

612

$

398

$

1,916

$

1,116

Net income – adjusted1

743

612

423

1,916

1,208

Selected volumes and ratios

Trading-related revenue (TEB)1,3

$

975

$

868

$

873

$

2,989

$

2,633

Average gross lending portfolio (billions of Canadian dollars)4

111.8

100.0

96.8

101.9

100.3

Return on common equity – reported5

16.7

%

14.5

%

9.3

%

14.6

%

9.0

%

Return on common equity – adjusted1,5

16.7

14.5

9.9

14.6

9.7

Efficiency ratio – reported

61.7

63.1

72.4

62.7

72.5

Efficiency ratio – adjusted1

61.7

63.1

70.8

62.7

70.6

Average number of full-time equivalent staff

7,417

7,226

7,342

7,327

7,078

1

For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document and the Glossary in the Bank's third quarter 2026 MD&A.

2

Adjusted non-interest expenses exclude the acquisition and integration-related charges for the Cowen acquisition – Q3 2025: $32 million ($25 million after tax), 2025 YTD: $118 million ($92 million after tax). 

3

Includes net interest income (loss) TEB of ($175) million, (Q2 2026: ($121) million, Q3 2025: ($231) million, 2026 YTD: ($751) million; 2025 YTD: ($907) million), and trading income (loss) of $1,150 million (Q2 2026: $989 million, Q3 2025: $1,104 million, 2026 YTD: $3,740 million, 2025 YTD: $3,540 million). Trading-related revenue (TEB) is a non-GAAP financial measure.

4

Includes gross loans relating to Wholesale Banking, excluding letters of credit, cash collateral, credit default swaps, and allowance for credit losses.

5

Capital allocated to the business segment was 11.5% CET1 Capital.

Quarterly comparison – Q3 2026 vs. Q3 2025
Wholesale Banking reported and adjusted net income for the quarter was $743 million. Reported net income for the quarter increased $345 million, or 87%, compared with the third quarter last year, primarily reflecting higher revenues and lower PCL, partially offset by higher non-interest expenses. On an adjusted basis, net income increased $320 million, or 76%, compared with the third quarter last year.

Revenue for the quarter was $2,581 million, an increase of $518 million, or 25%, compared with the third quarter last year. Higher revenue primarily reflects higher lending revenue, underwriting fees, and trading-related revenue.

PCL for the quarter was $41 million, a decrease of $30 million compared with the third quarter last year. PCL – impaired was $6 million, a decrease of $57 million compared with the prior year, reflecting higher impairments in the prior year. PCL – performing was a build of $35 million, an increase of $27 million compared with the prior year. The performing build this quarter largely reflects credit migration and volume growth.

Reported and adjusted non-interest expenses for the quarter were $1,594 million. Reported non-interest expenses increased $101 million, or 7%, compared with the third quarter last year, primarily reflecting higher variable compensation and front office costs, partially offset by the cessation of acquisition and integration-related costs. On an adjusted basis, non-interest expenses increased $133 million, or 9%.

Quarterly comparison – Q3 2026 vs. Q2 2026
Wholesale Banking net income for the quarter was $743 million. Net income increased $131 million, or 21%, compared with the prior quarter, primarily reflecting higher revenues and lower PCL, partially offset by higher non-interest expenses.

Revenue for the quarter increased $188 million, or 8%, compared with the prior quarter. Higher revenue primarily reflects higher trading-related revenue and advisory fees.

PCL for the quarter was $41 million, a decrease of $37 million compared with the prior quarter. PCL – impaired was $6 million, a decrease of $74 million compared with the prior quarter, reflecting higher impairments in the prior quarter. PCL – performing was a build of $35 million, compared with a recovery of $2 million in the prior quarter. The performing build this quarter largely reflects credit migration and volume growth.

Non-interest expenses for the quarter increased $85 million, or 6%, compared with the prior quarter, primarily reflecting higher variable compensation and front office costs.

Year-to-date comparison – Q3 2026 vs. Q3 2025
Wholesale Banking reported and adjusted net income for the nine months ended July 31, 2026 was $1,916 million. Reported net income for the period increased $800 million, or 72%, compared with the same period last year, primarily reflecting higher revenues, partially offset by higher non-interest expenses and PCL. On an adjusted basis, net income increased $708 million, or 59%.

Revenue for the period was $7,444 million, an increase of $1,252 million, or 20%, compared with the same period last year. Higher revenue primarily reflects higher lending revenue, trading-related revenue, and underwriting and advisory fees.

PCL was $291 million, an increase of $25 million compared with the same period last year. PCL – impaired was $302 million, an increase of $145 million, reflecting a small number of impairments across various industries. PCL – performing was a recovery of $11 million, compared with a build of $109 million in the same period last year. The current year performing recovery was driven by migration from performing to impaired, partially offset by volume growth.

Reported and adjusted non-interest expenses were $4,666 million. Reported non-interest expenses increased $177 million, or 4%, compared with the same period last year, primarily reflecting higher variable compensation, front office costs, and spend supporting business growth, partially offset by the cessation of acquisition and integration-related costs. On an adjusted basis, non-interest expenses increased $295 million, or 7%.

TABLE 11: CORPORATE

(millions of Canadian dollars)

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

2026

2026

2025

2026

2025

Net income (loss) – reported

$

(138)

$

64

$

(478)

$

(433)

$

7,378

Adjustments for items of note

Amortization of acquired intangibles

34

33

33

101

137

Restructuring charges

–

–

333

200

496

Impact from the terminated FHN acquisition-related capital hedging strategy

41

43

55

128

156

Gain on sale of Schwab shares

–

–

–

–

(8,975)

Less: impact of income taxes

Gain on sale of Schwab shares1

–

288

–

288

(407)

Other items of note

19

18

107

109

190

Net income (loss) – adjusted2

$

(82)

$

(166)

$

(164)

$

(401)

$

(591)

Decomposition of items included in net income (loss) – adjusted

Net corporate expenses3

$

(462)

$

(543)

$

(477)

$

(1,520)

$

(1,278)

Other

380

377

313

1,119

687

Net income (loss) – adjusted2

$

(82)

$

(166)

$

(164)

$

(401)

$

(591)

Selected volumes

Average number of full-time equivalent staff4

18,024

18,111

18,725

18,077

18,293

1

The second quarter of 2026 income tax impact includes an adjustment to the Bank's estimate of taxes owed on the gain from its disposition of Schwab shares in the prior year. Refer to "Income Taxes" in the "Financial Results Overview" section in the Bank's third quarter 2026 MD&A for further details.

2

For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document, and the Glossary in the Bank's third quarter 2026 MD&A.

3

For additional information about this metric, refer to the Glossary in the Bank's third quarter 2026 MD&A.

4

Effective the third quarter of 2025, call center operations have been realigned from the Corporate segment to the businesses, providing end-to-end ownership of customer experience. The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.

Quarterly comparison – Q3 2026 vs. Q3 2025
Corporate segment's reported net loss for the quarter was $138 million, compared with $478 million in the third quarter last year. The lower net loss primarily reflects restructuring charges in the prior year. The adjusted net loss for the quarter was $82 million, compared with $164 million in the third quarter last year. The lower adjusted loss is driven primarily by higher revenue from treasury and balance sheet management activities.

Quarterly comparison – Q3 2026 vs. Q2 2026
Corporate segment's reported net loss for the quarter was $138 million, compared with a reported net income of $64 million in the prior quarter. The quarter-over-quarter change primarily reflects the second quarter impact of a tax benefit related to the prior year's gain on sale of Schwab shares. The adjusted net loss for the quarter was $82 million, compared with $166 million in the prior quarter. The lower adjusted loss is driven primarily by lower net corporate expenses and favourability from tax benefits.

Year-to-date comparison – Q3 2026 vs. Q3 2025
Corporate segment's reported net loss for the nine months ended July 31, 2026 was $433 million, compared with a reported net income of $7,378 million in the same period last year. The year-over-year change primarily reflects the gain on sale of Schwab shares in the prior year. The adjusted net loss for the nine months ended July 31, 2026 was $401 million, compared with $591 million in the same period last year. The lower adjusted loss is driven by higher revenue from treasury and balance sheet management activities, partially offset by increased net corporate expenses. Net corporate expenses increased $242 million compared to the same period last year, primarily reflecting continued investments in governance and controls.

SHAREHOLDER AND INVESTOR INFORMATION

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Missing dividends, lost share certificates, estate questions, address changes to the share register, dividend bank account changes, the dividend reinvestment plan, eliminating duplicate mailings of shareholder materials or stopping (or resuming) receiving annual and quarterly reports

Transfer Agent:

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Toronto, ON M5H 4H1

1-800-387-0825 (Canada and U.S. only)

or 416-682-3860

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Hold your TD shares through the

Direct Registration System

in the United States

Missing dividends, lost share certificates, estate questions, address changes to the share register, eliminating duplicate mailings of shareholder materials or stopping (or resuming) receiving annual and quarterly reports

Co-Transfer Agent and Registrar:

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or

Computershare Trust Company, N.A.

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Beneficially own TD shares that are held in the name of an intermediary, such as a bank, a trust company, a securities broker or other nominee

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For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email [email protected]. Please note that by leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.

General Information
Products and services: Contact TD Canada Trust, 24 hours a day, seven days a week: 1-866-567-8888
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Access to Quarterly Results Materials
Interested investors, the media and others may view the third quarter earnings news release, results slides, supplementary financial information, and the Report to Shareholders on the TD Investor Relations website at www.td.com/investor/. 

Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on August 27, 2026. The call will be audio webcast live through TD's website at 9:30 a.m. ET. The call will feature presentations by TD executives on the Bank's financial results for the third quarter and discussions of related disclosures, followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at www.td.com/investor on August 27, 2026, in advance of the call. A listen-only telephone line is available at 416‑855-9085 or 1-800-990-2777 (toll free), passcode 00855#.

The audio webcast and presentations will be archived at www.td.com/investor. Replay of the teleconference will be available until 11:59 p.m. ET on September 11, 2026, by calling 289-819-1325 or 1-888-660-6264 (toll free). The passcode is 00855#.

Annual Meeting
Thursday, April 15, 2027
Toronto, Ontario

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.2 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S. and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 14 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on July 31, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.

SOURCE TD Bank Group

For further information contact: Brooke Hales, Senior Vice President, Investor Relations, 416-307-8647, [email protected], Gabrielle Sukman, Senior Manager, Corporate and Public Affairs, 416-983-1854, [email protected]

It has been about a month since the last earnings report for Applied Digital Corporation (APLD - Free Report) . Shares have added about 8.4% in that time frame, outperforming 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 Applied Digital Corporation due for a pullback? 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.

Applied Digital Q4 Earnings Beat Estimates, Revenues Rise Y/YApplied Digital reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.

Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%.

APLD's Segment Performance

The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.

The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.

During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations.

APLD's Operating Details

Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.

Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.

Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.

The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter.

APLD's Balance Sheet and Cash Flows

As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.

Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter.

APLD Offers Positive Outlook

Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.

Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.

Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses.

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

The consensus estimate has shifted -27.5% due to these changes.

VGM ScoresCurrently, Applied Digital Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Applied Digital Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerApplied Digital Corporation is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Blackstone Inc. (BX - Free Report) , a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago.

Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4%.

Blackstone Inc. 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 Expand Energy (EXE - Free Report) . Shares have added about 4.5% 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 Expand Energy 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 Expand Energy Corporation before we dive into how investors and analysts have reacted as of late.

Expand Energy Q2 Earnings Beat Estimates on Strong ProductionExpand Energy reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate by 9%. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.

On July 27, Expand Energy announced the acquisition of Twin Eagle, creating North America’s leading integrated natural gas company.

Production & Price RealizationsThe company reported the average second-quarter daily production (comprising 92% natural gas) of 7,482 million cubic feet of gas equivalent (MMcfe/day), increasing 3.9% from the year-ago level of 7,202 MMcfe/day. The daily production levels surpassed the Zacks Consensus Estimate of 7,460 MMcfe/day. Natural gas volume for the period came in at 6,896 MMcfe/day, up 4.5% year over year. The consensus mark called for 6,898 MMcf/day of natural gas. EXE’s oil production was 14 thousand barrels per day (MBbl/d), while NGL output totaled 83 MBbl/d.

The average sales price for natural gas during the second quarter was $2.42 per Mcf, down 17.4% from the prior-year realization of $2.93 per Mcf. It was also below the consensus mark of $2.64. The average realized oil price was $84.71 per barrel compared with the consensus mark of $80. Meanwhile, the average realized NGL price was $26.26 per barrel, above the Zacks Consensus Estimate of $25.79.

Costs & ExpensesTotal operating expenses in the quarter were $2.3 billion, lower than the year-ago quarter’s $2.4 billion. This was mainly driven by decreases in exploration, marketing and depreciation, depletion and amortization expenses. The company’s exploration, marketing and depreciation, depletion and amortization expenses of $16 million, $649 million and $722 million during the second quarter of 2026 decreased from the year-ago levels of $20 million, $791 million and $769 million, respectively.

Dividend & Share RepurchasesIn the second quarter, the company plans to pay its quarterly base dividend of 57.5 cents per share on Sept. 3, 2026, to its shareholders of record on Aug. 13. Furthermore, Expand Energy expects to continue its returns-focused allocation of capital, including share repurchases, while preserving its balance sheet capacity.

Year-to-date through July 24, 2026, Expand Energy has redeemed approximately $1.3 billion of gross debt and executed $849 million of share repurchases.

Financial PositionCash flow from operations totaled $1.1 billion, decreasing from the prior-year quarter levels of $1.3 billion, while Expand Energy’s cash capital expenditure totaled $753 million, leading to a free cash flow of $343 million. It also paid out $138 million in dividends during the period.

As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had long-term debt of $3.7 billion, reflecting a debt-to-capitalization ratio of 15.96%.

Guidance for Q3 & 2026Expand Energy is targeting an average daily production in the range of 7,400-7,500 MMcfe for the third quarter of 2026 and 7,400-7,600 MMcfe for full-year 2026. The company has budgeted its capital spending between $700 million and $780 million for the upcoming quarter, while for 2026, the figure is projected to be between $2.75 billion and $2.95 billion.

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

VGM ScoresCurrently, Expand Energy has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. 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. Interestingly, Expand Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Summit Therapeutics Inc. (NASDAQ:SMMT) partner Akeso Inc. on Wednesday released positive topline findings from its randomized Phase 3 HARMONi-GI1 clinical trial (or AK112-309).

The study evaluated ivonescimab paired with chemotherapy against durvalumab combined with chemotherapy as a first-line therapy for patients diagnosed with advanced biliary tract cancer.

Ivonescimab Demonstrates Superior Survival EndpointA pre-specified interim analysis revealed that the ivonescimab combination achieved statistically significant and clinically meaningful superiority in overall survival over the durvalumab combination.

This primary endpoint result highlights a notable outcome, as durvalumab combined with chemotherapy is currently the preferred first-line immunotherapy regimen recommended by international medical guidelines and recognized as the optimal standard of care.

Read Next

Furthermore, the trial met its key secondary endpoints, including progression-free survival and objective response rate.

Akeso plans to share comprehensive safety and efficacy data from this initial readout at an upcoming medical congress and publish the complete findings within a peer-reviewed journal.

First Phase 3 Trial To Beat Gold StandardThe HARMONi-GI1 trial stands as the first Phase 3 study in biliary tract cancer to show a statistically significant positive overall survival outcome against the global gold standard of a PD-L1 monoclonal antibody paired with chemotherapy, marking a major milestone in treating this complex disease.

Akeso sponsored the single-region, multi-center trial in China, exclusively generating, managing, and analyzing all associated data.

Regulatory Status Across Global MarketsIvonescimab is currently approved and commercially available in China for non-small cell lung cancer indications.

The therapeutic agent remains investigational and has not secured approval from regulatory authorities across Summit’s licensed territories, which encompass the U.S. and Europe.

SMMT Price Action: Summit Therapeutics shares were up 7.82% at $14.40 at the time of publication on Wednesday, according to Benzinga Pro data.

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BRUSSELS, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Sonoco S.a.r.l., a wholly owned unit of Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a global leader in high-value sustainable packaging, announces it will increase prices by 60 Euro per ton for uncoated recycled paperboard (URB) grades sold by the Company in the EMEA region.

The increase is in direct response to the continued inflationary pressures on the business and will take effect for all shipments made on or after September 15, 2026.

“Geopolitical constraints and the continued inflationary business environment are driving cost increases across our operations and supply chain. Expected increases in energy and fuel costs are likely to further pressure our operating and transportation costs. As we are unable to absorb these additional costs, we are forced to pass them on to the market,” said Sonoco’s Karsten Kemmerling, Division Vice President, Sales & Marketing, Industrial Paper Packaging, EMEA.

Sonoco S.a.r.l. is wholly owned by Sonoco and operates 19 tubes and core plants and five paperboard mills in Europe.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, sustainable metal and paper consumer and industrial packaging. A Fortune 500 company, Sonoco generated net sales of $7.5 billion from continuing operations in 2025 and has approximately 22,000 employees working in 263 operations in 37 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of the World’s Most Admired Companies by Fortune in 2026 as well as one of America’s Most Admired and Responsible Companies by Fortune and Newsweek. In 2025, the Company was included on USA TODAY’s list of America’s Climate Leaders. For more information on the Company, visit our website at www.sonoco.com.

Contact: Roger Schrum
843-339-6018
[email protected]

This press release was published by a CLEAR® Verified individual.