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Stryker (NYSE:SYK) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.

Access the full call at https://stryker-3q2026-earnings.open-exchange.net/registration

SummaryStryker reported 7.7% organic sales growth in Q3 2026, with notable performances in MedSurg and Neurotechnology (9.1%) and Orthopedics (5.9%).

The company is facing challenges in its hip and knee and peripheral vascular businesses due to a market slowdown, cyber incident impacts, and SAP implementation distractions.

Despite the challenges, Stryker remains optimistic about the long-term potential of the joint reconstruction market and plans to launch a powered hip impaction solution next year.

Stryker completed the acquisition of Xeri Mary, expanding its sports medicine and arthroplasty support, and made a strategic investment in CMR Surgical for the Versius platform.

Q3 adjusted EPS increased by 10.3% to $3.52, driven by gross margin expansion and expense management. The company revised its full-year guidance to reflect softer market conditions.

Looking ahead to 2027, Stryker is optimistic about growth opportunities from new products and strategic initiatives, including the commercialization of AVS’s IVL platform and new data from the Peerless 2 study.

Full TranscriptLayla (Conference Operator)

Welcome to the third quarter 2026 Stryker earnings call. My name is Layla and I’ll be your conference operator for today’s call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question-and-answer session. This conference call is being recorded for replay purposes. Before we begin, I would like to remind you that the discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company’s most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today’s press release. That is an exhibit to Stryker’s current report on Form 8-K filed today with the SEC.

I will now turn the call over to Mr. Kevin Lobo, Chair and Chief Executive Officer. You may proceed, sir.

Kevin Lobo (Chair and Chief Executive Officer)

Welcome to Stryker’s third quarter earnings call. Joining me today are Preston Wells, CFO, and Nick Mead, Vice President of Investor Relations. Before I begin, I’d like to congratulate Spencer Styles on his appointment as Stryker’s next CEO. Spencer has spent nearly three decades at Stryker helping shape our strategy, strengthen our culture and drive our growth. You will have additional opportunities to hear more from him at various investor events over the next few months and I am confident you will come away with an even greater appreciation of his capabilities to lead Stryker into the future.

For today’s call, I’ll provide an overview of performance. Nick will then provide a brief M&A update followed by Preston with additional details on financial results and guidance. We will then open the call to Q&A. Turning to our third quarter performance. Organic sales growth for the quarter was 7.7% with 9.1% growth in MedSurg and Neurotechnology and 5.9% growth in Orthopedics. Our Endoscopy and OrthoTech divisions delivered double-digit performances and Medical also delivered near double-digit growth.

While we delivered solid growth in several businesses, our overall results fell short of our expectations. As Preston mentioned during an investor conference this September, we are facing challenges with our hip and knee and peripheral vascular businesses. Beginning with hips and knees, it is now clear that there is a market slowdown in the US. We are seeing slower procedural growth amid affordability concerns from higher insurance premiums and deductibles. We are also observing increased pre-authorization denials, creating additional friction and delaying patient access to treatment.

Europe and the Middle East have also remained soft amid regional disruption, strike-related delays and government funding decisions. In addition to the softer market, we have not been winning at our historical rate. 2026 has been an unusual year marked by the cyber incident in the first quarter and an SAP implementation within our orthopedics businesses in July. This is the last of our businesses to go on to SAP and while the system is functioning well, it has created a distraction for our teams and delayed our visibility of market conditions.

Although Mako sales have been strong again this year, we are behind our expectations on new product sales for Mako RPS and Triathlon Gold. The feedback on these innovations is very positive, but the cyber incident and SAP implementation have impacted our commercial execution. We are taking actions to improve competitive conversions and new product adoption. Finally, as a leader in power tools, we are excited about bringing a powered hip impaction solution to the market next year, addressing an important product gap in our hip portfolio.

We remain confident in the long-term attractiveness of the large joint reconstruction market supported by favorable demographics and expanded access through new sites of care such as ASCs. Next I’d like to give an update on our vascular business, which reflects a sequential improvement from last quarter. The third quarter included one-time revenue from our Peripheral Vascular joint venture in China as a result of achieving a regulatory approval milestone in September. This benefit helped offset the impact of lost revenue from the ongoing supply disruption that we discussed during our last earnings call. Our teams made meaningful progress restoring supply throughout the quarter and we now expect inventory levels and product availability to continue normalizing through the end of the year.

While this has been a challenging period, we remain convicted in the outlook for Peripheral Vascular as a growth business accretive to Stryker. Looking ahead to 2027, we expect to begin commercializing AVS’s IVL platform and also look forward to important data from our Peerless 2 study a FlowTriever. We are excited about our recently announced strategic investment in CMR Surgical, which Nick will cover in his section. Our updated organic sales guidance anticipates a similar overall organic growth rate for the company in Q4 as we achieved in Q3. This assumes a continuation of the procedure environment we observed this quarter as well as continued strong capital demand where we continue to maintain an elevated order book.

Meanwhile, our successful efforts on margin expansion are limiting the impact of our sales shortfall on adjusted EPS and we continue to generate strong cash flows. As this is the last of 57 earnings calls as CEO, I would have preferred to deliver better news, but we’ve demonstrated before that our business is resilient, our foundation and culture are strong and we remain confident in our ability to deliver on our long-range financial commitments. I will now turn the call over to Nick. Thank you.

Nick Mead (Vice President of Investor Relations)

My comments today will focus on M&A and will highlight two recent transactions. As announced earlier this week, we have completed our acquisition of Xeri Mary, which expands the support we can provide to specialists across sports medicine and arthroplasty. Zuri Med’s Differentiated Fiber Locker technology is designed to increase biomechanical strength and rotator cuff repair and provides a broader platform for orthopedic soft tissue augmentation.

Next, we recently announced an investment in CMR Surgical, an agreement to act as the exclusive US sales agent for the Versius platform. Soft tissue robotics is an attractive adjacency that is a natural extension of Stryker’s strengths in endoscopy, visualization and enabling technologies. Versius has been used in more than 50,000 procedures globally and its scalable design can support broader adoption of robotic-assisted surgery. With its new Versius Plus system approved indications, technology and growing global clinical experience, we believe now is the right time to partner with CMR and begin scaling the US market through a thoughtful, disciplined approach.

Together, these transactions reflect our continued focus on investing in opportunities that support durable long-term growth and value creation. I’ll now turn the call over to Preston to further discuss our third quarter performance.

Preston Wells (Chief Financial Officer)

Thanks, Nick. Detailed financial information is included in today’s press release. I’ll focus on our third quarter financial performance, the key drivers of our results, and our updated outlook for the remainder of the year. Organic sales grew 7.7% in the quarter against a strong prior year. Comparable pricing contributed 0.1% to growth while foreign currency had no impact on sales. The quarter had the same number of selling days as the prior year.

Quarter adjusted earnings per share were $3.52, up 10.3% from the same quarter last year, driven by gross margin expansion supported by operational efficiencies along with disciplined expense management. Turning to segment performance, MedSurg and Neurotechnology, organic sales grew 9.1% with growth of 9.6% in the U.S. and 7.2% internationally. Instruments U.S. organic sales grew 4.8% against a strong 15.3% prior year, comparable with double-digit growth in our interventional, spine, and surgical technologies businesses. This performance was offset by softer performance in our neurosurgical business due to the deferral of capital purchases ahead of the upcoming launch of our Sonopet 3 ultrasonic aspiration platform, which received FDA 510(k) clearance earlier this month.

Endoscopy U.S. organic sales grew 13%, supported by continued robust demand for operating room infrastructure and renovations and strong performance in sports medicine, where double-digit growth continues to be driven by its expanded range of shoulder implant products. Medical U.S. organic sales increased 10%, including double-digit performances for Sage and SmartCare businesses, while capital demand remains elevated across our portfolio. Vascular U.S. organic sales grew 13%, primarily reflecting the drivers that Kevin discussed earlier.

Internationally, MedSurg and Neurotechnology organic sales growth of 7.2% included broad strength across Endoscopy, Medical, and Instruments. Geographically, growth was led by robust performances in Australia, Germany, Canada, and India. Orthopedics organic sales were 5.9%, with growth of 6.4% in the U.S. and 4.4% internationally. U.S. knees organic sales grew 1.3% while U.S. hips organic sales declined 0.6% against strong prior year comparables. As Kevin noted, we remain focused on strengthening our commercial execution behind our enabling technology platforms and new products to restore momentum and drive share gains. U.S. Trauma and Extremities organic sales grew 4.5% against a strong 13.2% prior year.

Comparable current year growth reflected continued strong performance in upper extremities, supported by continued momentum across our differentiated portfolio, including early success of Mako shoulder on Mako 4. We are expecting strong growth for Trauma and Extremities in the fourth quarter. U.S. OrthoTech organic has increased 18%, supported by continued strength in Mako sales and robust demand for orthopedic power tools. Internationally, Orthopedics organic sales grew 4.4%, supported by knees, OrthoTech, and Trauma and Extremities, and was led regionally by Canada, Japan, Australia, Germany, and India.

Turning to margins and other income statement items, adjusted gross margin was 65.4%, up 40 basis points from the third quarter of 2025. The improvement reflected a net tariff benefit and benefits from operational efficiencies. Adjusted operating margin was 26.2% of sales, up 60 basis points from the third quarter of 2025, reflecting the gross margin improvement and continued expense discipline. Adjusted other income and expense was $91 million, down $25 million from the same quarter last year, reflecting lower debt levels.

We now expect adjusted other income and expense to be approximately $400 million for the full year. The third quarter had an adjusted effective tax rate of 16%. We now expect our full year effective tax rate to be in the range of 15.5% to 16%. Turning to cash and capital allocation, we ended the third quarter with approximately $3.3 billion of cash and cash equivalents and year-to-date cash from operations of $3.3 billion, an increase of approximately 14% compared to the prior year. During the quarter, we repurchased $1 billion of shares under our previously existing share repurchase program. Additionally, we received Board authorization for another $3 billion towards future share repurchases, which provides us additional flexibility while preserving our capacity to invest in strategic M&A growth opportunities.

Based on our year-to-date results, we are revising our full-year guidance to reflect softer hip and knee procedure trends, lingering supply constraints in peripheral vascular, and mitigation of operational execution risk related to capital equipment sales. We now expect full-year organic net sales growth of 6.5% to 7% and adjusted net earnings per share of $14.80 to $14.90. Our revised adjusted earnings per share outlook reflects continued expense discipline and gross margin expansion.

Looking ahead, we remain confident in the long-term trajectory of our business. Our diversified portfolio, leading positions in attractive markets, robust innovation pipeline, and expanding Mako ecosystem provide a strong foundation for sustainable growth. As we plan for 2027, our priorities remain focused on category leadership, advancing innovation, and driving operational excellence to deliver market-leading sales growth while continuing to expand margins and grow earnings.

We are continuing to assess market conditions, procedural volume trends, and the broader macroeconomic environment as we finalize forecasts for 2027. While we will not provide formal guidance until early next year, we do expect to deliver growth at the high end of our markets. With that, I will now open the call for Q&A.

Layla (Conference Operator)

At this time, we will open the floor for questions. If you would like to ask a question, please press Star five on your telephone keypad. You may remove yourself at any time by pressing Star five again. We would like to remind callers to please limit themselves to one question and one follow-up question so we can accommodate as many participants as possible. And we’ll pause just a moment. Okay. Our first question will come from Robbie with J.P. Morgan.

Your line is now unmuted. Please go ahead.

Robbie Marcus (Analyst)

Great. Good afternoon. Thank you for taking the questions. Two for me. First, Kevin, clearly disappointing to hear about the ortho market. Where do you think market growth is now? Anything the industry could do to help stem the decline? Is it extremities as well as hips and knees? And then I have a follow-up.

Kevin Lobo (Chair and Chief Executive Officer)

Thanks. Thanks, Robbie. What we saw was really a slowdown in the hip and knee portion of the market, not really extremities. Our extremities business, especially upper extremities, continues to be very high growth. So we’re not seeing much of an impact there. It’s really the hip and knee market where we’re seeing the slowdown. It’s hard to estimate exactly, but I would say market growth is kind of in the 2.5% range this year. That’s what we think, which is definitely a step down from where it has been the last six years.

And as you know, it took us a while to figure this out. There’s a lot of noise with our cyber event, noise with some of the things going on competitively, and then our SAP implementation, which really delayed a lot of order entry. So we really started to figure this out kind of in early September when Preston made his remarks at the investor conference. But this has happened before in my tenure, earlier in my tenure, where we’ve had kind of a year like this and things have turned.

So we’ll have to monitor this closely. Certainly it was a surprise for us and that is reflected in our guidance.

Robbie Marcus (Analyst)

I appreciate you not guiding for 2027 at this point. There’s a lot of moving pieces here as we think about some of the shifting market dynamics. Where do you think Stryker’s weighted average end-market growth is as we head into year-end, and any puts or takes we should be considering respective to margins? I know this is a pretty healthy margin business in ortho. How should we think about that down the P&L? Thanks.

Preston Wells (Chief Financial Officer)

Yeah, Robbie. So in terms of the weighted average market growth, and we said a year ago at our investor conference that we believe we were about 6% is what we thought we were. Now, obviously, if you take into account what’s happening across the joint replacement of the hip and knee market, you know, that’s probably taken a little bit of a tick down from there. So we’re continuing to look at and understand kind of where that nets out. So I think if we have those couple of pieces, you can see, you know, we’re probably a little bit of a step down from where we said a year ago in terms of our overall growth rate.

And as I mentioned in my remarks, our goal will be, as we start on 2027, that we will perform at the high end of those markets as we go into there. Looking at the margins, you know, our expectation around margins is that, you know, we want to continue to deliver what we committed to a year ago as well. You know, we feel like we’re putting the right plans in place from an operational excellence standpoint. We’re really getting after our manufacturing element and gross margins from that standpoint, as well as just looking at other efficiencies up and down the P&L. So you’re right, the joint replacement market is certainly a more profitable gross margin business.

But overall, we feel like we’re putting the right pieces in place to continue to try to drive margin improvement year over year.

Layla (Conference Operator)

Our next question will come from Larry Beigelsen with Wells Fargo. Your line is open. Please go ahead.

Larry Beigelsen (Analyst)

Good afternoon. Thanks for taking the question. So, Kevin, given this is your last earnings call, congratulations on creating a lot of shareholder value at Stryker, and Spencer, congratulations on your new role. I wanted to start with the CMR investment, actually. Why is CMR the right partner for you? How will you and CMR compete against the big incumbent? And if you do decide to acquire it, how will you absorb the high cost of developing and marketing a competitive soft tissue robot?

And I have one follow-up.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, thanks, Larry. Look, the soft tissue robotic market is very appealing. As you know, I’ve been talking about it for years. We’ve looked at every robot around the world and had multiple looks at these robots. When Versius Plus came along, the upgraded version of Versius, we got a chance to see something that we felt very excited about. We feel it is the best robot on the market to be able to succeed in multiple sites of care. The modular nature makes it great for the ambulatory surgery center as well as working well in hospitals.

And frankly, robotic penetration is very low in general surgery. So we look at winning as being able to convert open surgery and convert laparoscopic surgery to robotic regardless of competing with the incumbent. There’s plenty of room for two players in the market, but this will work in hospitals. This will work very well for high-volume procedures like cholecystectomies and appendectomies and hernias. And so it can be a very high-volume, simple-to-use small platform robot that’s highly, highly functional.

And to your question about risk, one of the reasons we’re going about it in this manner is we want to de-risk this and have our people do the commercialization in the US as an investor but not a full owner. Our hope and our plan is that we will eventually purchase this. We’re not going to get into details about when that would be, but that is our plan. This is our bet in the soft tissue robotic place. We’re putting a lot of resources on this and that is our expectation that we will be able to take out the asset and be able to drive value for Stryker.

We’ve done this before with Mako. And we had the challenges of development; this is further along, frankly, in its journey than Mako was when we acquired Mako. And again, we’re very excited. It’s a very high-growth segment of MedTech and we believe this is going to be a winning solution that we are hopeful to acquire in the not too distant future.

Larry Beigelsen (Analyst)

That’s helpful. And Kevin, it’s been a while since the last new product super cycle. You talked about the recent Sonopet clearance. You have the Hip Impactor next year and the Peerless 2 data. What other products or growth drivers would you highlight for next year? Thank you.

Kevin Lobo (Chair and Chief Executive Officer)

Well, we have the next version of Neptune, which is our big waste management platform within Instruments that’s coming in the first half of next year. That’s going to be a very exciting launch. We have the ABS product, as you know, that we’re expecting FDA approval towards the end of this year. That’ll be a shot in the arm for our peripheral vascular business. And we have in the not too distant future — we’re not going to give you dates — we have System 10 coming for power tools.

We have 1688 coming as well for endoscopy. And so we’re going to continue to be launching products on a pretty sustained basis across. And I’m not even getting into all the smaller products that we have. Obviously we’ve acquired a great platform for sports medicine with Zurbit that’ll plug right into our existing shoulder businesses. And so there are a bunch of other products which we’ll get into later on other calls. But major platforms, Neptune — major platform; Sonopet — major platform; 1688 coming, System 10 coming. So we have a lot. And don’t forget Mako RPS is just getting started. Triathlon Gold just getting started. Medial stabilized inserts doing very well.

And so the power tool factor is very important in hips for us. That’s a really important gap to be able to do competitive conversions. Having that power tool package can be very important for us in the hip business.

Layla (Conference Operator)

Our next question will come from Joanne Wunsch with Citi. Go ahead, Joanne.

Joanne Wunsch (Analyst)

Good afternoon. Thank you. Good noon and congratulations to you both. I do have a memory of ebbs and flows in the orthopedics market and editing market. But generally, could you remind what brought us out the last time and what can be learned from that to think about bringing us out this time?

Kevin Lobo (Chair and Chief Executive Officer)

Well, in the past sometimes it’s been tied to economic activity. So when you see economic pressures, people feeling strained financially — I mean there are patients that today are having trouble being able to make their deductible because their deductibles are higher. And to be able to fund their deductible, they’re actually living with pain a little bit longer than they would like to. So as sort of economic conditions tend to improve for the, let’s call it, average person in the market, then you start to see the demand pick up.

And frankly these diseases are degenerative, so you can delay these for a while, but the pain reaches the point where you can’t sleep at night. And so we see this as not a market that’s going to go away. It’s just there’s this temporary delay that’s happening right now and the market will come back. It’s hard to predict exactly when, but it has historically tied more to sort of economic cycles. If you go back, Joanne, I think that’s a correlation you’ll probably note.

Joanne Wunsch (Analyst)

Oh, cool, thank you. And I think just to pick up from a previous question, to say you grow at the high end of where your market growth is, we’re all going to be updating our models and talking about lots of fun stuff. Can you give us some parameters around that? Just give us some footing as we think about next year? Thank you.

Preston Wells (Chief Financial Officer)

Yeah. Joanne, I would just point you back to what we said a year ago again in terms of what we think our WAMGR is across all of our businesses. We’re not going to obviously go detailed business by business, but if we look at just that overall WAMGR, then think about this new kind of reality that we’re living within the hip and knee market and that probably takes a little bit of a tick down. And then again, our expectation is that we’re going to grow faster than what that looks like.

Layla (Conference Operator)

Your next question will come from Ryan Zimmerman with BTIG. Your line is unmuted. Please go ahead.

Ryan Zimmerman (Analyst)

Good afternoon. And Kevin, 57/4 is a nice run. Congratulations on the fourth quarter. I think if you look at the implied math, you know, it shakes out to around 7.9% organic, roughly in line with kind of what you guys saw this quarter. Preston, you know, you highlighted the areas that you think are going to be weak — orthopedics, peripheral vascular, etc. Maybe help us think about what’s accretive in the implied organic growth for fourth quarter, where you’re seeing momentum, where you’re seeing strength.

It sounds like extremities is holding up nicely in some of the other MedSurg businesses as well. But just help us offset some of that weakness or where you see that could be offset.

Preston Wells (Chief Financial Officer)

Absolutely. So, I mean, again, we expect that — like I said, I think that implied number is pretty good. I think we’ll be looking at areas like trauma and extremities, as you mentioned. We expect that to have a very strong quarter. As I mentioned in my prepared remarks, the other areas I would look at: Medical will have a really good quarter. So we expect that to perform well. Instruments is another area that we would expect to have strong performances as well.

And then I think the others, again, it’s just a matter of keeping par with some of what we’ve done today. As Kevin mentioned, around peripheral vascular, while we still see that being pressured, it should be a little bit better underlying in terms of where we expect that to perform also. So I think we have a few areas that we’ll certainly be leaning on as we come into the fourth quarter, and we’ll continue to work on the execution in other areas that Kevin mentioned as well, even in some of those softer spaces.

Ryan Zimmerman (Analyst)

And maybe turning to capital — thank you, Preston, for that — and then maybe just turning to capital for a minute. I mean, you’ve talked about the strength of the order book, but at the same time it’s kind of balanced by some of your other comments around capital. And so if we could step back and give us your view of capital in the market, maybe what you’re seeing. There’s been a lot of chatter about 340B and the impact to hospitals. And so would love to understand kind of where you’re seeing maybe strong capital demand at higher price points versus lower price points, etc. I’d appreciate those thoughts.

Nick Mead (Vice President of Investor Relations)

Hey, Ryan, this is Nick. I’ll take that from a capital perspective. So, you know, really there’s two components there. There’s the demand side of the capital equation and then there’s us executing on the demand. From a demand perspective, the order book remains strong and elevated. And of course, there’s nuances by business, but by and large, the capital environment remains healthy. What we’re focused on is continuing to execute on that demand from a capacity perspective.

And we’re laser focused to ensure that we have plans in place to deliver on all those businesses that Preston just mentioned in terms of putting together the full year.

Layla (Conference Operator)

Your next question will come from the line of Travis Steed with Bank of America. Please go ahead.

Travis Steed (Analyst)

Hey, thanks for the question, Spencer. Congrats on the CEO job, Chris. When you think about calling out market slowdown versus the winning rate and what data points are helping kind of build out what’s the market slowdown versus the win rate. And it seems like, at least to me from where I sit, maybe things got a little worse later in September versus kind of what was being messaged at the September conference. So I don’t know if things kind of worsened over the course of September for you as well.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, look, I wouldn’t say things worsened in September. We only gained visibility to the quarter kind of in the September timeframe because there were huge delays in order entry given the change to SAP. So we only recognized it later in the quarter. But it wasn’t just something that fell off in the month of September. And the other thing I’d say is if you look at our sales, we don’t do bulk sales within our hip and knee business. And so when you see our numbers, they tend to be pretty reflective of what’s happening in the market because we don’t have that exaggeration of bulk sales.

And it’s going to be a combination. The market’s definitely slow. We know we’re not losing major bits of business to the competition. So that tells us that it’s mostly market related. But we have been gaining share at a higher rate very consistently for the past five, six years. And our teams were distracted. They clearly weren’t focused as much on this. And that’s why we think the market growth definitely declined, but we weren’t taking share the way we had been taking share in the past.

Travis Steed (Analyst)

Okay, that’s helpful. And how does the cyber impact in 26 impact 2027? Is it an easy comp? Is there ability to catch up in 27? And I just want to make sure it sounds like 6% is kind of the floor for total company growth next year. I just want to make sure I heard that correctly.

Preston Wells (Chief Financial Officer)

Yes. Let me answer your cyber question. So we haven’t gone through yet all the different quarterly splits, etc., for next year’s planning process. But certainly as you look at cyber, it’ll be something that we’ll have to talk about anniversarying clearly in the first quarter. But then we’ll also anniversary bits of the recovery throughout the year. So we’re going to have to really talk through, as we go through each quarter, kind of the impacts as we can kind of detail them out.

But the reality is for much of the cyber incident, that’s been made back up just at different points in time. And I think when we look at our performance in ’27 versus ’26, it’s really going to be a matter of looking at kind of overall performance versus the market and any market changes that are happening from ’26 to ’27. In terms of the floor, we’re not setting guidance right now, so we’re just giving a bit of an indicator as to how we’re starting to think about ’27.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, I think the takeaway is the market slowed down. In joint replacement, we’ve had this challenge with SAP that we believe we’ll be through. It affected joint replacement and also affected our core trauma business pretty significantly. We think that we’ll be through that. And the underlying fundamentals of our business in every other area are strong. Capital demand, very strong. And we have a pretty good innovation cycle. So despite this order’s takedown on the guide, the fundamentals are still very, very strong. Looking ahead,

Layla (Conference Operator)

Your next question will come from Matthew O’Brien with Piper Sandler. Your line is open. Please go ahead.

Matthew O’Brien (Analyst)

Afternoon. Thanks for taking the questions. And Kevin, it’s been an absolute pleasure watching you grow this business. I guess I’m still a little hung up on this hip and knee commentary about Q3 here because if I look at your Ortho tech number, that was really good. It still seems like, generally speaking, the macro environment’s really healthy. I actually talked to a CDMO yesterday. They said things are pretty steady. I’m trying to reconcile this slowdown versus all these other data points that look like they’re still fairly positive.

And what I’m really kind of getting at is it feels like this could be a very short-term blip and that the recovery could be very quick. Is that fair? Are there certain parts of the market? I don’t know if it’s, you know, private-pay patients versus, you know, versus Medicare patients or anything else like that you can point to that says this is the one area that’s really slowing down and that we could see a snapback in that area going forward.

Kevin Lobo (Chair and Chief Executive Officer)

Look, I don’t have a crystal ball, so it’s really going to be difficult to predict if there’ll be a snapback. There have been confounding data points all year on the market. I mean, one of the big hospital chains just announced their results earlier this week and talked about a significant slowdown in hips and knees, and they’re a very large operator. So that’s a data point. Then there are other data points that say it’s not as bad. So I think your point is the most accurate point is things come back, and it’s hard to predict when they come back.

You might be right. There could be a snapback. But we’re not going to count on that. As we give our guide, we’re assuming it stays where it is right now. The market stays where it is. We have seen times in the past where it came back pretty quickly. We’ve seen other times where it’s taken a little longer, and I really don’t have a great feel for when this will return.

Matthew O’Brien (Analyst)

Okay. And then just quickly, on the vascular business it did look like it popped back up here a little bit, which is great to see. Can you just talk about kind of the state of the vascular business and then your IVL plans as we go into 2017? Thank you.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah. Look, the state of the business is we have a very stable and high-performing sales organization, which was last year’s challenge. If you recall, we had a lot of salesforce challenges. That’s well behind us, and the sales and marketing organization is really solid. As we came back up after the cyber incident, we had a lot of challenges with our manufacturing facility, and that put us in a backorder, and that has been very, very painful. It got better in the last quarter.

We also had the one-time benefit which I mentioned in my opening remarks, but I’m starting to feel like IVL’s—the excitement from our customers is incredible. Customers are really excited about the technology, the mechanism of action. And it’s the same customer that also uses our other peripheral vascular products. So we believe that synergy is going to be fantastic. Not only will the product, we believe, perform very well, but we believe it’ll have a synergistic effect on the base business.

So we’re looking—we’re just waiting for the FDA approval, and the teams are already preparing for launch.

Layla (Conference Operator)

Your next question will come from the line of Matthew Taylor with Jefferies. Your line is unmuted.

Matthew Taylor (Analyst)

Hi. Thanks for taking the question. I wanted to ask you a somewhat conceptual but also pragmatic question about AI. You know, you’ve seen other areas of the market, and even in healthcare recently, a lot of subsectors get credit for AI and the improvements that it could bring. It doesn’t seem like that’s really happened at all in Medtech, and yet you have a couple businesses now with robotics and surgery and connected care that I would think, over time, could have significant product benefits, development benefits from AI.

So I was hoping you could talk about that a little bit—why you think Medtech hasn’t gotten credit and the kind of benefits that we could see from AI on your business and in Medtech over time.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, I think what we’ve generally seen within healthcare, and Medtech specifically, is when you have new cycles of technology innovation, it tends to take longer before it has an impact. Just the regulated nature of our industry tends to cause it to take a little bit longer. Robotics is a good example where robotics has taken hold in a lot of other industries and more recently has really started to take off in Medtech. We focused a lot of our energy on AI for innovation.

Yes, we have some productivity initiatives ongoing, but we have three FDA-approved AI products, and you referenced a couple of them when you were speaking in your question, and we have a number of other ones. Most of our product innovations that we’re launching—anything in an enabling tech world—is likely going to have some kind of AI component to it, and we’re very excited about the promise. Bringing science to healthcare and using AI to help drive that science so that when you visit a surgeon, you’re not just getting their one lived person’s experience; you’re going to be getting a wealth of data at their disposition to be able to make informed decisions, just like we do with our Blueprint pre-planning software for upper extremities. So we are investing in it. You’re going to hear more from us. It is always a little bit slower in Medtech.

That’s just the nature of innovations in a regulated industry.

Matthew Taylor (Analyst)

Thank you, Kevin.

Kevin Lobo (Chair and Chief Executive Officer)

Thank you.

Layla (Conference Operator)

Our next question will come from Vijay Kumar with Evercore ISI. Your line is unmuted.

Vijay Kumar (Analyst)

Hi, guys. Thank you for taking my question. Kevin, maybe my first one for you. When you look at ’27 and the new products you listed out, I think in the past when we had these System 9s and 1788 launches, you called them super cycles. I’m curious, given the current environment, how would you characterize this impact of new products? Is this still something that you would characterize as a super cycle for ’27?

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, look, the phrase was important because we had a number of platforms all being launched at the same time. And what I’d say is our innovation never stops, and sometimes the timing is just all at the same time; sometimes it’s metered out over—you have a power tool launch one year, a camera launch the next year, a Mako upgrade the next year. So sometimes they’re a little bit more spaced out. They just happened to be condensed all in one sort of cluster, if you will.

But I would say that we have great innovation. Ongoing innovation gets rewarded in Medtech, and so we are going to continue to invest in innovation. And the platforms—like I’m incredibly excited about—it has some features that it’s going to be a step change. So as 16-8 was a step change, 1788 was a little bit more. I think 1888 is going to be fantastic. Then we have System 10 and we have all the other products across our portfolio that will be launching.

Neptune is a great product. That platform change obviously drives growth. So every time we do these innovations, it drives growth, and that is not changing. That dynamic isn’t changing. And the capital market’s really good. We’re seeing our order book being elevated. We’re not draining our backlog. And we’re just, frankly—if you think about Medical as a good example—LUCAS 3.5 and ProCuity are still new products. I know they don’t sound new, but these products ramp over an extended period of time just because the replacement cycle is a lot longer on beds, stretchers, and defibrillators. And so the demand for those products is very significant.

And we’re actually building extra capacity, especially in beds. The demand is very strong. And so those are still kind of new products even though they’ve been launched a little while ago because of the replacement cycle. So we feel good about our innovation. It’s alive and well in our company. And a number of those launches will occur in 2017.

Vijay Kumar (Analyst)

That’s helpful. Question one for you. I saw the buyback in the quarter. You have a new authorization for 3 billion. What’s the, I guess, philosophy behind capital allocation decisions? Right. Is this something that you would consider as more opportunistic in nature when you think about deploying capital towards buybacks?

Preston Wells (Chief Financial Officer)

Vijay, thanks for the question. As we said last quarter, given the timing of when we have our deal flow from an M&A standpoint, we would look at more opportunistic share buyback opportunities, and that’s kind of what we saw. That’s what we saw in the third quarter, and we’ll continue to evaluate that in the fourth quarter as well. But just to reiterate—Nick talked a little bit about this in his prepared remarks—capital allocation, from our standpoint, the number one priority remains M&A. And so we want to continue to put our dollars towards M&A. But just given the timing of what we’ve had this year, what we see, this does just give us the opportunity to go out and do some opportunistic repurchases of shares.

The one thing I would say, too, is it doesn’t take away from any of our firepower. I think what we’ve been able to demonstrate over the last several years is a continued increase in our ability to generate cash at a higher rate—some of it’s scale, some of it’s the work that we’re doing on working capital and other areas. And so that gives us a lot of flexibility now to go out and enhance our capital allocation in terms of how we’re thinking about where we put our dollars to drive shareholder value.

So this just gives us another lever to do that.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, I’d just like to add something about M&A. So we continue to remain a disciplined acquirer. And we had a number of targets that we weren’t able to close on this year, and some of those targets basically didn’t stall and we hope will actually come back to us as opportunities in the future. And so we do have an active pipeline, but with the sheer amount of cash we’re generating, we’re able to do these buybacks and still pursue all of the deals that we’re pursuing right now.

And we intend to remain active in M&A going forward.

Layla (Conference Operator)

Our next question will come from the line of Chris Paschall with Barclays. Your line is unmuted. Please go ahead.

Chris Paschall (Analyst)

Thanks. You mentioned mitigating execution risk related to capital equipment sales as one of the factors behind the guidance revision. Was just hoping you’d elaborate on that. Are you saying you’re just being more conservative about what’s assumed between now and year-end just to absorb any delays that might crop up, or is there more to it in terms of what you’re seeing out there in the market?

Kevin Lobo (Chair and Chief Executive Officer)

No, Chris, I think that’s right. When Nick said earlier with regards to capital, demand is there. We’re seeing very, very strong demand. We talked about ramping production, which we’ve been doing, and we were able to do on many of our lines, particularly around Medical. It’s just making sure that we can match that production and supply with the demand as it continues to grow. So, again, it’s a bit of just a more conservative view in terms of our ability to make sure that we are executing at the highest level to meet all the demand that is out there from a capital standpoint.

Nick Mead (Vice President of Investor Relations)

I mean, as we look at the market, we typically do not tend to over-index on one specific quarter. If you look at the trends over the past, you know, 12 months, we really haven’t seen any notable movement in share. We’ve been growing more in line with market. You know, if you look back for the past few years, we’ve certainly been exceeding market growth by a meaningful amount. And over the past couple quarters, for a variety of reasons that Kevin talked about, we’ve been growing more in line with the market.

You know, as we think about our performance moving forward, we’re excited to play offense and certainly having the hip impactor in our portfolio is going to allow us to do that in 2027 and beyond.

Preston Wells (Chief Financial Officer)

The thing I would add from a knee standpoint—Kevin mentioned this—is really just continued execution of our enabling tech strategy, really talking about Mako 4, Mako RPS, along with the new products that he mentioned with Triathlon Gold and MSI. Those are elements that we feel give us a lot of opportunity to play offense, as Nick mentioned.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah. And I’d add that the medial stabilized insert is actually doing very well and getting really positive feedback. It’s a poly insert, but there’s a demand in the market and to be able to convert business, that’s something we’re very bullish about. That start has been very good and I think that could be an accelerator going forward.

Layla (Conference Operator)

Our next question will come from Patrick Wood with UBS. You’re unmuted. Please go ahead.

Patrick Wood (Analyst)

Beautiful. Thanks, guys. Two quick ones. One, just the state of the union on the SmartCare business—like for Vocera and Care AI. I know obviously ours last quarter, but that’s been a big push this year. So that’s the first one. And the second, extremities is obviously still doing very well. What do you think it is that’s distinct about, say, shoulder, that is enabling it to sort of bat off some of the pressures that hip and knee has seen? I know the base market growth is way higher, but in your mind, what’s distinct about the patient pool that’s enabling that to remain as strong as it sounds like it is.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, so the first thing I’d say is SmartCare had its best quarter in our history this past quarter. So it was a big contributor to the growth in Medical. It’s small relative to the size of Medical in dollars, but it had very high double-digit growth in the quarter. Orders are picking up. The integration of Care AI with Vocera is smooth. We’ve moved things to the cloud. So a lot of the early integration pains that we’ve had, we’re through that, and we are very excited about the momentum—the most excited I’ve been since, frankly, we’ve done those acquisitions.

The integration is smooth, the customer experience is terrific. Virtual nursing is really becoming a common topic across hospitals to drive productivity, and Care AI is very well suited for that. So I would say I’m more bullish than ever about this. It’s taken us a while, admittedly, but we had a terrific quarter in Q3 and we expect that to continue going forward. Second part—oh, shoulder. Yeah, shoulder. Look, it’s a little bit a newer joint. If you think about hips and knees have been around a long time. Shoulder, the results from shoulder joint replacement are really terrific. In the past, they sort of didn’t have the same degree of great outcomes, and obviously we’re the number one player in that, with the Tornier implants that we have and so many innovations that we’ve launched—short stem, stemless.

We now have Mako Shoulder, that application that’s creating us. We have the pyrocarbon that’s really great for sort of a hemiarthroplasty. So we have so much innovation and we’ve sort of been scaling those innovations in Shoulder ID, which is a personalized glenoid. These are all launches we’ve had over the past two years that have kind of scaled and created tremendous differentiation in our shoulder business. So the market as a whole is growing faster and has been growing faster than hips and knees for a while because it’s a newer market where people are now seeing great outcomes, telling their friends about it.

And I think it’s going to be a very big market in the future because a lot of people are living with pain and that they get addressed. And I think that Mako Shoulder will actually potentially grow the market, as hip and knee surgeons that used to do shoulders, if they’re familiar with Mako, they may very well go back to doing shoulders again, which they potentially had abandoned in the past.

Patrick Wood (Analyst)

Thanks, guys.

Layla (Conference Operator)

Our next question will come from Mike Mattson with Needham and Company.

Mike Matson (Analyst at Needham & Company)

Yeah, thanks for taking my question. Just wanted to ask one on the commentary around the hip and knee market. I think you’re seeing two and a half percent growth. Was that kind of your estimate of the year-to-date growth or the growth in the third quarter? Because just looking at your numbers in the third quarter, it looks like you were about flat, which would imply a fair bit of market share loss. It sounds like you’re sort of saying that you think you grew in line with the market.

I’m just trying to figure out, has the market gone from low to just more flattish in the third quarter here?

Preston Wells (Chief Financial Officer)

No, so—so again, I think Nick mentioned this as well. You know, we never look at a quarter in this hip and knee market and kind of say that’s indicative of a trend. And so when we talk about two and a half, we’re really trying to understand and extrapolate over the course of the year or even the last trailing 12 months—hard to do since not everybody’s reported yet. And so we have to wait and see what that looks like. But that’s our read on the market kind of year to date—is that, roughly, we’ll call it roughly two and a half is where it’s growing.

Mike Matson (Analyst at Needham & Company)

Okay, but the message is that you think it was slower in the third quarter than the first half of the year.

Preston Wells (Chief Financial Officer)

We do think it slowed down a bit more. We do think it slowed down a bit more.

Layla (Conference Operator)

Our next question will come from Jason Bedford with Raymond James.

Elaine (Analyst at Raymond James)

Hi, this is Elaine on for Jason. Thanks for taking the question. You talked about the factors driving the ortho slowdown and I was wondering, are you seeing similar dynamics have an impact on MedSurg volumes or would you say that MedSurg is more insulated given the acute nature of the procedures?

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, the latter. We see that’s more insulated. We have not seen a slowdown there. Preston talked about our growth drivers heading into Q4 and a lot of those are on the MedSurg side.

Elaine (Analyst at Raymond James)

Okay, thanks. And I’ll have a follow-up. So OrthoTech came in a bit better than our expectation, despite the broader ortho softness. Can you talk about what enabled it to do better? And do you have an update on the progress with Mako Shoulder and Mako RPS? Thanks.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah. So yeah, we were very pleased with the OrthoTech performance. Mako growth was tremendous. And as a reminder, we have a balance between upgrades as well as brand new installations, and that balance continues since we launched the Mako 4 platform. We also had a very strong performance from our orthopedic instruments business—so those are the power tool–type business. They did very well. Capital sales there were very strong in the quarter. So those are both very good.

And then Mako RPS is off to a slow start—really good customer feedback, but we’ve got to get our salesforce playing offense, and they were a bit distracted last quarter. So we have incentives in place and a commercial offense that’s going to lean in a lot more on RPS as we go forward. And then the shoulder for Mako is getting really, really good feedback and contributing to the shoulder growth.

Layla (Conference Operator)

Our next question will come from Mike Kratke with Leerink Partners. Your line is open. Please go ahead.

Sam (Analyst)

Yeah, hi, this is Sam on for Mike. Thanks for taking our question. So it just seems like we’re hearing anecdotes of price competition getting more intense in orthopedics. So we’re just wondering what you guys are seeing out there on the pricing side and your expectation for 2027.

Preston Wells (Chief Financial Officer)

Yes. From a price perspective, we’ve maintained kind of our same expectations through the year. I mean, we expect modest price across the entirety of our portfolio. That’ll likely come more on the MedSurg side—we’ll get some positive price—and on the ortho side, you know, we’re trying to hold as much price as possible, but we’ll end up in a slightly negative position, which is not significantly different than where we were last year. And so from our perspective, we’re not expecting anything significantly different than that.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, you know, we—I picked up some noise in the market around prices going down because of bulk sales. So there is some activity. It’s not happening at Stryker; we don’t do bulk sales. We report our price—we actually report price, which not everybody does in our market. And so that’s what I hear. Outside of that sort of base business, normal contracting, it’s a pretty stable pricing environment. So that’s the noise that we hear, but it certainly doesn’t apply to us.

Sam (Analyst)

Got it. Helpful. And then just on the vascular side, you know, can you provide any color on how much in share loss during this interim disruption you kind of view as temporary versus potentially more durable, and you know, how difficult it may be to get back any lost share in accounts that have been disrupted.

Nick Mead (Vice President of Investor Relations)

Yeah. So what I would say is we feel really good about being able to get back on offense, as Kevin mentioned. And so anything that we feel like we’ve lost we believe is temporary and that we’ll be able to get back out and start winning that business back. Certainly having AVs and launching that product sometime next year will be a big help as we continue to build out and diversify the portfolio to have a winning offense in ’27.

Layla (Conference Operator)

Our next question will come from the line of Richard Newitter with Truist. Your line is open. Please go ahead.

Richard Newitter (Analyst)

Thanks for taking the questions. Maybe just the first, congrats on the CMR Surgical deal. I guess maybe you could just tell us why that asset. Kevin, you’ve talked a lot in the past—you don’t feel rushed, you guys are going to make the right decision—and just maybe also as you answer that, the why now, why that asset? And then why not just purchase it outright? Thank you.

Kevin Lobo (Chair and Chief Executive Officer)

Yeah, I think I sort of mentioned this earlier in the call, but an outright purchase comes with a lot of risk and then huge costs for continued ongoing development. And we have to make sure that this is going to be a commercial success in the United States that really will determine the ultimate success of CMR. And so we are going to actually run the sales office in the United States and we know how to run sales. So we believe it will be very successful.

But we don’t want to put all our eggs in this basket. It’s a high-risk kind of a deal. There’s still ongoing development. They have a really strong team. They’ve changed to Versius Plus, which has been excellent. We’ve been talking to this company for a long time, for many years. We know them very, very well. We’ve watched their trajectory. They have about 10-plus years of experience, and time over target in robotics is actually really important.

We saw that with Mako. Having all those years under their belt before we acquired it was massively helpful. But we don’t want to just jump in here. Unlike Mako, which had implants attached to it, this is a pure adjacency and it’s not something we wanted to rush into necessarily. And it’s just a risk we felt we didn’t need or want to take at this time and also put a lot of other financial pressures onto the rest of our portfolio. So it’s financially de-risked, operationally de-risked. But we like the partner. We have a great relationship with their leadership.

And the Versius Plus—the improvements that they made to that system—we always liked the design, the modular nature, easy to move around between rooms. So great for the ASC or great if you have a lot of surgeons that want the robot. Today, there’s many surgeons that would love to use a robot, but they don’t have one in their hospital. And this is, as I said, great for those high-volume procedures that’ll switch from being laparoscopic and open into robotic.

So the feedback—we did surgeon testing, a lot of evaluations—and feedback was really positive. We hired a medical director on as part of the endoscopy team, Dr. Santiago Horgan, who is very famous, and he looked at every single robot. He was our chief advisor on this, but also used a panel of surgeons to assess all different robotic technologies. There were a few that we liked and this one was the clear winner. But not jumping in, all told, is because it’s a new space, it’s a pure adjacency.

There is obviously a large incumbent and we have to be able to prove the U.S. success. But our plan is this does work and that we do eventually take it. Yeah, well, for now we’re going to hold off making any comments until we see it in the marketplace. But we love our solution, which of course has multiple applications on the same robot, which this will not have, and obviously proven success. Robots aren’t easy and as we’ve seen with other offerings in the marketplace, it takes a little while to get it to start to perform in a decent way. And we have the leading platform. We looked at this company, obviously, earlier on, but I’m going to reserve judgment and wait till we see what happens.

Let’s see it come to market. And all I can say is robots are hard and it’s not something that I’m really afraid of in the near term. But we’ll see.

Layla (Conference Operator)

Our next question comes from Matt Blackman with TD Cowen. Your line is now open.

Matt Blackman (Analyst at TD Cowen)

Hi, thanks for taking the question. Kevin, just one for you and then one for Preston. You were talking about CMR a few times in the call, but I’m just curious if you could give us maybe a deeper view on where you think the biggest opportunity is. Is it just conversion from lap or open? Which bucket do you think has the largest opportunity? And maybe how should we think about the potential for you to integrate your tower with CMR? You mentioned 1888 is coming.

It’s a step change versus 1788. Just curious if that really helps you go deeper in existing surgery suites. Does it seem to help you?

Kevin Lobo (Chair and Chief Executive Officer)

Yeah. So the second part of your question I’m really not going to answer because we haven’t bought the company and, in fact, we haven’t even closed our agreement, but it will close shortly. But we’re going to work with CMR. It’s still their company. We’re an investor, we have a stake in the company, and we have a board seat with the company. But we’ll work with them. You do need a tower with their robot and, obviously, if we’re commercializing the robot, chances are we’re going to try to partner with our tower.

But there are a lot of synergy opportunities and we will work with them on some of those synergy opportunities. And then ultimately, when we eventually acquire this, then we’ll be able to talk at length about our plans. So for now it is a relationship that we have with them and we will show them things that we can collaborate on. But ultimately they’re going to have to agree because it is still their company. Definitely the biggest opportunity is conversion of laparoscopic and open to robotic. That’s where the biggest opportunity is. Again, it doesn’t mean that we won’t be chosen in some cases versus the competitive offering. But that’s really not the prime focus. There are a lot of procedures done today and laparoscopic isn’t easy. Laparoscopic suturing is not easy. Robotics will make these procedures easy to perform and we think that’ll drive much higher adoption of minimally invasive surgery.

Matt Blackman (Analyst at TD Cowen)

Thank you. And Preston, earlier in the call I think someone mentioned that there was a China JV revenue ahead in the quarter. Just wondering if you might be able to quantify it for the quarter.

Preston Wells (Chief Financial Officer)

Yeah, so yes, we did get a one-time benefit out of our joint venture in China. As a reminder, this was a joint venture that was based when we purchased Inari. We aren’t calling it out specifically. What I would just say is the underlying business—the ongoing underlying peripheral vascular and vascular business—is about in line earlier in September and similar to the performance and impact that it had on the business in second quarter.

Layla (Conference Operator)

Our final question will come from Vic Cho with BMO Capital Markets. Your line is now unmuted.

Vic Cho (Analyst at BMO Capital Markets)

Thanks for squeezing me in. Just a quick question for you on ZuriMED. I’m just wondering how that FiberLock technology expands the soft tissue augmentation portfolio and anything you can share around revenues and timelines. Thank you.

Kevin Lobo (Chair and Chief Executive Officer)

Look, it’s a little early for us to share much on revenue and timelines. What I’d tell you is it’s a very differentiated performance product. It has an open system in terms of the type of material that you’re able to attach to drive that fixation. We love the applicator. The applicator is almost like magic the way it applies the fixation—really designed—and we think it’s going to be an absolute winner. As you know, this is an area that rotator cuffs have a lot of failures.

And this additional augmentation will provide tremendous clinical benefits. And it has been a fast-growing part of the market. We did not have a solution for this and we looked at similarities and we passed on them because we didn’t feel they were differentiating enough. And this one is the one we feel will be an absolute winner. We already have, and the timing is just perfect. We can launch all these shoulder products and now we have this augment as well.

So it’s really something that we’re excited about. We’ll share more details as we launch it in terms of success, but I do believe it’s going to be a winner in the market.

Layla (Conference Operator)

There are no further questions. I will turn the call over to Kevin Lobo for closing remarks.

Kevin Lobo (Chair and Chief Executive Officer)

Well, thank you all for joining our call and thanks for all the time we’ve had over the years. We look forward to sharing our Q4 and full year 2020 with you. The next earnings call. Thank you.

Layla (Conference Operator)

This concludes the third quarter 2026 Stryker earnings call. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Black Kow expands to retailers nationwide and launches new organic products for gardeners  | Source: Scotts Miracle-Gro Company (The)

MARYSVILLE, Ohio, Oct. 29, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), home to North America’s leading consumer lawn and garden brands, today announced that it has completed the acquisition of the Black Kow brand from Organics Management.

Following a successful licensing partnership established in January 2026, the Company exercised its purchase option to bring Black Kow fully into its core Gardens portfolio. Known for its iconic yellow bag and trusted for generations, Black Kow is the leading brand of naturally composted cow manure and organic soil amendments. By integrating Black Kow into ScottsMiracle-Gro’s expansive manufacturing and distribution network, the acquisition transforms a regional favorite into an accessible brand for gardeners from coast to coast.

Strategic Integration Pillars: Driving National Distribution and Product Growth

The addition of Black Kow extends ScottsMiracle-Gro’s commitment to organic, regenerative gardening solutions through three core initiatives:

Nationwide Retail Availability: Expanding Black Kow’s footprint beyond its traditional eastern U.S. base into retail outlets nationwide.New Ready-to-Use Organic Mixes in fiscal 2027: Thanks to rapid innovation by ScottsMiracle-Gro scientists, launching new, premixed organic potting, raised-bed and in-ground soils powered by Black Kow compost, delivering upon the growing consumer demand for natural gardening solutions.Single-Ingredient Soil Builders: Expanding the portfolio of single-ingredient amendments tailored to DIY growers who prefer to customize their own soil mixes. Financial Impact and Strategic Fit

“The Black Kow acquisition is an important milestone in our multi-year SMG 2.0 growth plan,” said Nate Baxter, president and CEO. “It is a testament to our tuck-in M&A strategy, taking a trusted brand with strong consumer loyalty and integrating it seamlessly into our core business. This transaction is expected to improve our leverage ratio and contribute to sales and profitability growth in year one. Black Kow will create sustainable value for our shareholders while meeting growing consumer demand for organic gardening solutions.”

Portfolio Synergies with Miracle-Gro

Sadie Oldham, vice president and general manager of the Gardens business, added, “I am incredibly excited to lead the integration of Black Kow into our Gardens portfolio. The synergies between our Miracle-Gro and Black Kow brands are undeniable. Black Kow’s heritage as a trusted, natural soil amendment complements the performance-driven nutrition of Miracle-Gro, giving us a highly differentiated product mix. We are uniquely positioned to deliver a complete, premium gardening solution to every type of grower.”

About ScottsMiracle-Gro

With approximately $3.3 billion in sales, the Company is home to North America’s leading consumer lawn and garden brands. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com.

For investor inquiries:
Brad Chelton
Vice President
Treasury, Tax and Investor Relations
[email protected]
(937) 309-2503

For media inquiries:
Tom Matthews
Chief Communications Officer
[email protected]
(937) 844-3864

Republic Servs (NYSE:RSG) reported third-quarter financial results on Thursday. The transcript from the company's third-quarter earnings call has been provided below.

Coinbase Global earned third-quarter adjusted net income of $719 million, up 66% from $433 million a year ago, largely due to a recovery in the cryptocurrency market.

Coinbase said it earned $2.51 a share in the latest quarter, although it wasn't immediately clear if that compared with the 6-cent-per-share profit that Wall Street analysts had estimated. Revenue of $1.20 billion trailed the $1.233 billion expected by analysts polled by LSEG.

Net income at the San Francisco-based platform surged thanks to the value of its volatile cryptocurrency investment portfolio, which can swing wildly even when the composition of the underlying holdings are little changed.

The third quarter value of Coinbase's crypto investment portfolio climbed due to a resurgence in the digital asset market. The price of bitcoin — often used as a gauge for all crypto assets — rose 39% in the three-month period ended Sept. 30 and the flagship cryptocurrency recently changed hands at roughly $80,809. 

Building beyond bitcoin In the third quarter, Coinbase deepened its push into non-crypto products and services, including artificial intelligence integrations for traders, tokenized real-world assets and prediction markets.  

In July, VP of product Max Branzburg told CNBC that Coinbase would debut an "everything exchange" spotlighting tokenized stocks and other real-world assets, derivatives trading, prediction markets and early-stage token sales. The trading platform also introduced Coinbase for Agents in early October, supporting users that want to use ChatGPT, Muse or other AI agents to manage their portfolios or research and trade various assets.

Coinbase also expanded its prediction market offerings, making a wider range of event contracts available to users.

In the third quarter, prediction markets revenue grew to more than $200 million on an annual basis, while the number of traders on those markets increased 60% compared with the second quarter.

The video-game company said average daily users were down 9% to 138 million, and engagement hours fell 15% to 34 billion.

Roblox (NYSE:RBLX) reported third-quarter financial results on Thursday. The transcript from the company's third-quarter earnings call has been provided below.

Strategy (MSTR -2.44%) earned $19.5 billion in the third quarter, or $44.75 per diluted share, and almost all of it came from the rising price of the bitcoin (BTC -2.53%) it holds. Shares were flat in early after-hours trading. The profit tells you bitcoin rebounded, not that the business improved. The measure that matters went the wrong way, because each share now holds less bitcoin than it did in January.

Key NumbersNet income: $19.53 billion, up from $2.79 billion a year ago.Gain on digital assets: $20.91 billion, up from $3.89 billion a year ago.BTC Yield, the change in bitcoin per share: negative 3.7% year to date.Total revenue: $125.4 million, down 3% from a year ago.What It MeansStrategy marks its bitcoin to the market price every quarter, and the change runs straight through earnings. That means a record profit mostly tracks the price of the coin, while the small software business barely moves the result.

Bitcoin per share is the real scorecard for this company, and it is shrinking. Strategy grew its pile of coins 26% this year, but its share count grew even faster, so each owner's slice got smaller.

MSTR Strategy$141.62-$3.54 (-2.44%)

NASDAQ · As of 4:00 PM ET 10/29/26

Cash is also flowing out to defend the company's preferred stock. Strategy spent about $2 billion this year buying back its STRC preferred shares while they traded below face value. It has also sold some bitcoin to help pay for those buybacks and for preferred dividends, so a company built to pile up bitcoin is now selling some to prop up its own credit.

What to Watch NextWatch whether BTC Yield turns positive next quarter. Also track how much bitcoin Strategy sells to cover dividends and STRC buybacks.

David Kretzmann has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

JPMorgan, Citi, Barclays, and 17 other financial giants just signed onto DTCC's blockchain settlement platform, yet the coin powering that network keeps sliding deeper into the red. Something about how these banks actually use the network may surprise CC holders.

The Depository Trust & Clearing Corporation (DTCC) launched its Tokenization Service on October 28, 2026, a significant step for post-trade operations in the U.S. stock and bond markets. This service enables the creation of blockchain tokens that represent traditional securities, using the Canton Network, which relies on Canton Coin (CRYPTO: CC).

To date, 20 participants have signed up to use this service from DTC, the depository arm of the DTCC, including major banks and brokerages that hold securities at DTC. DTC holds over $114 trillion in assets under custody, and the participants include Barclays (NYSE: BCS), Citigroup (NYSE: C | C Price Prediction), JPMorgan Chase (NYSE: JPM), Morgan Stanley, and State Street (NYSE: STT).

The Tokenization Service operates on two networks: the Canton Network and DTCC’s private Besu network, with plans to add more networks in 2027.

Despite these advancements, Canton Coin’s value has continued to decline. CC traded at $0.1005, up 1.1% over the past 24 hours but still down 20.4% for the month. This dip is significant, as CC is 48.2% below its all-time high of $0.1942, reached on February 3, 2026.

Canton Strategic Holdings Is the Listed Company Closest to Canton Coin

Canton Strategic Holdings (NASDAQ: CNTN) recently divested its legacy biotech division, Gravitas Life Sciences, to focus on Canton-related businesses. As a Super Validator on the Canton Network, the company earns CC rewards. It also offers a Locking-as-a-Service product that secures CC for participants who must maintain minimum balances according to governance rules.

In the second quarter of 2026, these operations generated about $1.5 million in revenue, primarily from the new Locking-as-a-Service, which contributed $1.3 million. However, the company reported a net loss of $19 million due to the declining value of its 3.71 billion CC holdings, resulting in a $24 million unrealized loss, which reflects the depreciation of assets still on the books.

Looking ahead, the company plans to list tokenized shares on TSV LLC, a blockchain trading platform, with trading expected to start as soon as November 2 under the SEC’s Innovation Exemption.

Fairmint’s tokens are designed to carry the same rights as the company’s Nasdaq shares. However, the announcement does not clarify whether buyers will use CC for these transactions, suggesting trades may involve cash tokens or stablecoins, with CC serving only as a fee currency.

Banks Have Yet to Commit to Buying Canton Coin

While DTCC has welcomed 20 banks and brokers to its network, it has not guaranteed they will purchase, hold, or transact in Canton Coin. Institutions can avoid public-token systems entirely by using the Besu network. Their participation signals support for DTCC’s initiatives rather than a direct endorsement of Canton Coin.

CC serves as the utility token for the Canton network, enabling applications to pay synchronizer fees—a system that organizes and confirms transactions. CC fees are burned, permanently removing those tokens from circulation.

The network mints new tokens as rewards for app providers and validators based on their activity, so the overall CC supply grows as usage increases. However, under governance proposal CIP-0129, traffic on dedicated synchronizers will not contribute to burning CC.

DTCC has not specified which type of synchronizer it will use for its Canton transactions, leaving CC holders uncertain. If transactions occur on a dedicated synchronizer, it may generate DTCC fees while saving banks time, but it could also burn less CC.

The participating banks are also developing their own systems. Citi’s CEO, Jane Fraser, highlighted on the October 13 earnings call that Citi Token Services and tokenized deposits are key areas of focus, and the bank operates its own competing network connecting 300 banks.

State Street CEO Ron O’Hanley said on October 14 that its tokenized fund platform will launch by year-end, with its cash fund operating on Stellar. Meanwhile, JPMorgan has its own tokenized fund offerings.

Canton Coin Gains Only When Burning Outpaces Minting On October 23, Canton’s Super Validators approved CIP-0129, which introduces universal burning: every production synchronizer will burn CC at a specified list price, with volume discounts for high-frequency users. A subsequent proposal is needed to set prices, but for now, the network is minting more CC than it burns.

The discounts could mean large users, likely banks, burn less CC per transaction. Additionally, the Canton Development Fund has allocated 15.8 million CC (valued at about $1.6 million) to RedStone to develop CAPS, a privacy-focused pricing standard still in development. If grant recipients sell their CC, it could further exert downward pressure on the token’s price.

This ongoing situation is reflected in CC’s performance, which is trading below its 20-day, 50-day, and 200-day moving averages, indicating continued market struggles.

Contact [email protected] for any questions or corrections.

 | Source: Canadian National Railway Company

MONTREAL, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Canadian National Railway Company (TSX: CNR) (NYSE: CNI) today announced that Ghislain Houle, Executive Vice-President and Chief Financial Officer, will retire from his role effective February 1, 2027. Jamie Lockwood, currently Vice-President, Investor Relations and Special Projects, has been selected to succeed Ghislain as Executive Vice-President and Chief Financial Officer, effective February 1, 2027.

Ghislain will remain Executive Vice-President and Chief Financial Officer through January 31, 2027, ensuring continuity through CN’s year-end reporting cycle. As of February 1, he will serve as Strategic Advisor to the President and Chief Executive Officer to support a smooth and orderly transition through his final day with the company on March 31, 2027, after which he will retire.

Over three decades with CN, Ghislain has held progressively senior leadership roles and made significant contributions to the Company. Since becoming Chief Financial Officer in 2016, he has provided steady financial leadership through periods of significant economic and industry change, helped strengthen CN’s financial foundation and supported the advancement of the Company’s strategic priorities. Throughout his tenure, he has been a trusted member of CN’s executive leadership team and a strong steward of the Company’s financial discipline.

Jamie joined CN in 2008 and has held leadership roles of increasing responsibility across Finance, Strategy, Investor Relations and Operations. This breadth of experience has given him a strong understanding of CN’s business, operations and financial strategy. His appointment follows a comprehensive succession planning process and reflects CN’s focus on developing strong internal talent and ensuring leadership continuity.

“Ghislain has made an exceptional contribution to CN over three decades, and I am deeply grateful for his leadership, sound judgment and commitment to the Company. He leaves a strong foundation, and his continued support through the transition will be invaluable. Jamie is a highly respected leader with deep knowledge of CN and broad experience across our business. I am confident he is the right leader to build on that foundation and help advance our strategy while maintaining the disciplined financial stewardship our shareholders expect.”

– Tracy Robinson, President and Chief Executive Officer, CN

“I am honored to take on the role of Chief Financial Officer and grateful for the opportunity to build on Ghislain’s contributions. I look forward to working with Tracy and the leadership team to continue advancing CN’s strategy, maintaining strong financial discipline and creating long-term value for our shareholders and customers.”

– Jamie Lockwood, Vice-President, Investor Relations and special projects, CN

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:

MediaInvestment CommunityAshley MichnowskiFrancois BelangerSenior ManagerSenior DirectorMedia RelationsInvestor Relations and Sustainability(438) 596-4329(514) 399-0052
[email protected]@cn.ca

 | Source: Prospect Capital Corporation

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced today that Prospect priced an institutional offering of $300 million in aggregate principal amount of senior unsecured 8.95% Notes due 2031 (the “Notes”).

“We appreciate the support we received for this unsecured bond offering,” said Grier Eliasek, President of Prospect. “This leverage neutral bond offering further strengthens our already diversified financing sources as we continue to ladder our maturity schedule.”

The Notes will bear interest at a rate of 8.95% per annum payable semi-annually in arrears on April 30 and October 31 of each year, commencing on April 30, 2027.

The Notes will be general senior unsecured obligations of Prospect and will rank equally in right of payment with Prospect’s existing and future senior unsecured debt.

The Notes will mature on October 31, 2031 and may be redeemed, at our option, in whole or in part at any time or from time to time, at certain specified redemption prices. The offering is expected to close on November 5, 2026, subject to customary closing conditions.

Prospect expects to use the net proceeds of this offering for the refinancing of existing indebtedness, including its existing 3.364% unsecured notes due 2026 and/or borrowings under its revolving credit facility, and, if there are any remaining net proceeds, for general corporate purposes, including investments and balance sheet liquidity.

The offering of the Notes was made only by means of a prospectus supplement and the accompanying prospectus. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Prospect Capital Corporation

Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer
[email protected]
Telephone (212) 448-0702

Buffett's Latest Portfolio Moves, and Another Secret StockSirius XM NASDAQ: SIRI reported third-quarter results that showed stable revenue, higher profitability and improved cash generation, while management raised its full-year outlook for revenue, adjusted EBITDA and free cash flow by $25 million each.

Chief Executive Officer Jennifer Witz said the company’s priorities remain strengthening the subscription business, expanding advertising and off-platform monetization, and improving operating efficiency. Sirius XM recorded 5,000 self-pay net additions in the quarter, compared with a year-earlier decline, while churn improved year over year and average revenue per user remained relatively stable.

Get Sirius XM alerts:

Sirius XM: Why Berkshire Just Added Another 2.3 Million Shares“Our third quarter performance reinforces that progress,” Witz said, citing positive self-pay net additions, growing engagement and double-digit growth in podcasting and programmatic advertising.

Revenue Stable as EBITDA and Free Cash Flow Rise
Consolidated third-quarter revenue was approximately $2.2 billion, essentially unchanged from the prior year. Subscription revenue rose modestly to $1.6 billion, as the benefit from February pricing actions offset subscriber-mix effects. Advertising revenue increased slightly to $456 million, supported by podcasting, programmatic advertising and technology fees.

Spotify Stock Surge: Why Investors Are Buying Despite High PricesChief Financial Officer Zac Coughlin said equipment revenue declined by $7 million because of higher memory costs. Within the core SiriusXM segment, equipment revenue fell 16% to $36 million, reflecting elevated memory costs associated with hardware modules and broader semiconductor-industry conditions.

Adjusted EBITDA increased 3% to $694 million, and the adjusted EBITDA margin expanded by one percentage point to 32%. Total operating expenses declined about $24 million, or 2%, driven by lower costs in programming, customer service, sales and marketing, and general and administrative functions.

Net income rose 7% to $317 million. Free cash flow increased 14% to $293 million in the quarter and reached approximately $1.1 billion during the first nine months of 2026, up 48% year over year. Coughlin attributed the cash-flow increase to improved profitability, reduced capital expenditures, favorable working capital, lower cash taxes and lower interest expense, as well as timing factors.

The company said it has realized $96 million of its planned $100 million in gross cost savings through September, including $64 million of operating-expense savings and $32 million of capital-expenditure savings.

Subscription Efforts Focus on Retention and Household Engagement
Sirius XM’s self-pay churn improved to approximately 1.5%, while ARPU was $15.18. The company said rate increases and an improved discount mix were partially offset by a growing mix of lower-priced and value-added offerings.

Companion plans contributed approximately 107,000 net additions during the quarter, according to Coughlin. The plans allow eligible subscribers to extend access beyond the primary vehicle, including to other household members or vehicles. Witz said the company is seeking to expand the initiative carefully while managing potential subscriber cannibalization and ARPU dilution.

The company also cited gains from Continuous Service and extended-duration dealer programs. Sales of extended-duration dealer plans increased more than 80% year over year, supported by two new automotive partners in 2026. Sirius XM said those programs generate more than twice as many monthly active listeners per vehicle sold as the traditional trial funnel.

Average listening time increased 5% year over year during the third quarter, with growth across all subscriber-tenure groups. Witz said 55% of incremental listening among existing subscribers came from discovering new channels, while 45% came from spending more time with familiar programming. Morgan Wallen Radio accounted for approximately 20% of the overall increase in listening.

Management expects a more difficult fourth quarter for self-pay trends as the company anniversaries earlier benefits from Continuous Service, faces continuing conversion pressure and maintains discipline on promotional customer acquisition. Still, Sirius XM now expects full-year self-pay net additions to be approximately in line with 2025, when the company lost about 300,000 self-pay subscribers.

Podcasting, Programmatic Advertising and YouTube Audio Expand Reach
In the Pandora and Off Platform segment, revenue increased modestly to approximately $549 million. Advertising revenue rose 1% to $419 million, driven by 20% growth in podcasting, 21% growth in programmatic advertising and 11% growth in technology fees. Those gains were partly offset by lower streaming-music advertising, which reflected reduced listening hours.

The company said strong podcast advertising demand and larger deal sizes reduced available inventory during the quarter. Sirius XM is adding shows including “Giggly Squad,” “Serialously” and “The Bald and the Beautiful” to expand premium inventory. It also said video and social podcast advertising sales more than doubled year over year for the third consecutive quarter.

SiriusXM Media’s YouTube Audio relationship has expanded the company’s unduplicated monthly reach to about 255 million listeners, up from 170 million a year earlier, according to Witz. Early campaigns have increased advertisers’ unique reach by as much as 91%, she said. Management expects only a modest financial contribution in 2026, with a more meaningful effect anticipated in the second half of 2027.

Chief Advertising Revenue Officer Scott Walker said most early YouTube Audio bookings have come from existing advertisers testing the offering. The company is working to build targeting, measurement and content-filtering capabilities that advertisers expect across the expanded platform.

Guidance Raised and Capital Returns Continue
For 2026, Sirius XM raised its outlook to approximately $8.55 billion in revenue, $2.65 billion in adjusted EBITDA and $1.4 billion in free cash flow.

Capital expenditures were $166 million in the quarter, down from $175 million a year earlier. The company expects SXM-12 to launch in 2027 and anticipates non-satellite capital expenditures of approximately $400 million to $415 million in 2026.

Sirius XM reduced debt by $100 million during the quarter and returned $124 million to shareholders through dividends and share repurchases. Net leverage ended the quarter at 3.3 times adjusted EBITDA, within the company’s target range of low- to mid-three times. Coughlin said Sirius XM had about $1 billion remaining under its repurchase authorization and sees potential to meaningfully accelerate buybacks in 2027 while maintaining the dividend and leverage framework.

About Sirius XM (NASDAQ:SIRI)Sirius XM Holdings Inc is a media and entertainment company that provides subscription-based audio programming through its SiriusXM service. The company delivers a broad range of commercial-free music, live sports, news, talk and entertainment programming, including exclusive channels, original shows and coverage of major events.

SiriusXM content is distributed primarily through satellite radio and internet streaming. Subscribers can access the service in vehicles, through the SiriusXM mobile app and website, and on supported connected devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Third Quarter Highlights1

Net Revenues +2.3%, Organic Net Revenues +2.1%, Volume/Mix +1.8%

Diluted EPS increased +78.9% to $1.02
Adjusted EPS was $0.78 which increased +5.5% on a constant currency basis

Year-to-date cash provided by operating activities was $2.6 billion
and Free Cash Flow was $1.7 billion

Return of capital to shareholders was $2.8 billion through the third quarter of the year

CHICAGO, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its third quarter 2026 results.

“We delivered strong third-quarter results, driven by broad based volume growth and robust share performance. We continue to see top- and bottom-line growth momentum across both developed and emerging markets, while significantly reinvesting in our brands, innovation, and distribution,” said Dirk Van de Put, Chairman and Chief Executive Officer. "We are resolute in delivering volume-led, compounding earnings growth that creates value for shareholders. We remain confident that our attractive categories, iconic brands, advantaged geographic footprint, and consumer-centric capabilities will sustain our performance for years to come.

Additionally, we are delighted to announce our recent agreement to acquire Undercover Snacks, a delicious, crunchy quinoa crisp line that highlights our continued expansion in the high-growth permissible indulgence segment. With chocolate and frosted varieties containing simple ingredients, Undercover Snacks is rapidly earning strong consumer preference and has a clear runway to expand household penetration and distribution.”

Net Revenue

$ in millionsReported
Net Revenues Organic Net Revenue Growth Q3 2026 % Chg
vs PY Q3 2026 Vol/Mix PricingQuarter 3         Latin America$1,387 12.0% 6.9% 0.8 pp 6.1 ppAsia, Middle East & Africa 2,182 8.2  7.7  5.5  2.2 Europe 3,552 (3.3) (2.1) 1.6  (3.7)North America 2,846 1.1  1.6  —  1.6 Mondelēz International$9,967 2.3% 2.1% 1.8 pp 0.3 ppEmerging Markets$4,072 4.9% 4.1% 2.2 pp 1.9 ppDeveloped Markets$5,895 0.5% 0.8% 1.5 pp (0.7) pp          September Year-to-DateYTD 2026   YTD 2026    Latin America$4,109 13.0% 6.8% (0.6) pp 7.4 ppAsia, Middle East & Africa 6,457 10.3  8.7  5.5  3.2 Europe 10,800 1.5  (2.0) (1.2) (0.8)North America 8,036 1.5  1.8  0.2  1.6 Mondelēz International$29,402 4.9% 2.4% 0.6 pp 1.8 ppEmerging Markets$12,130 7.9% 4.9% 1.4 pp 3.5 ppDeveloped Markets$17,272 2.8% 0.8% 0.2 pp 0.6 pp              Operating Income and Diluted EPS

$ in millions, except per share dataReported Adjusted Q3 2026 vs PY
(Rpt Fx) Q3 2026 vs PY
(Rpt Fx) vs PY
(Cst Fx)Quarter 3         Gross Profit$3,924  50.2% $3,407  14.9% 14.0%Gross Profit Margin 39.4% 12.6 pp
  34.2% 3.8 pp  Operating Income$1,758  136.3% $1,384  18.2% 17.0%Operating Income Margin 17.6% 10.0 pp  13.9% 1.9 pp  Net Earnings2$1,305  75.6% $992  4.5% 3.5%Diluted EPS$1.02  78.9% $0.78  6.8% 5.5%          September Year-to-DateYTD 2026   YTD 2026    Gross Profit$10,713  34.3% $9,680  6.3% 3.7%Gross Profit Margin 36.4% 7.9 pp  32.9% 0.4 pp  Operating Income$4,512  73.8% $3,788  (1.0)% (3.7)%Operating Income Margin 15.3% 6.0 pp  12.9% (0.8) pp  Net Earnings2$3,413  91.1% $2,794  (2.2)% (5.3)%Diluted EPS$2.66  94.2% $2.18  (0.9)% (4.1)%                  Third Quarter Commentary

Net revenues increased 2.3 percent driven by our underlying Organic Net Revenue growth of 2.1 percent and favorable currency-related items, partially offset by lapping prior year net revenue from a divestiture. Organic Net Revenue growth was driven by favorable volume/mix and higher net pricing. Gross profit increased $1,312 million, and gross profit margin increased 1260 basis points to 39.4 percent primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives and an increase in Adjusted Gross Profit1 margin, partially offset by incremental costs due to geopolitical conflicts. Adjusted Gross Profit increased $414 million at constant currency and Adjusted Gross Profit margin increased 380 basis points to 34.2 percent driven primarily by lower raw material costs, lower manufacturing costs driven by productivity, favorable volume/mix and higher net pricing.Operating income increased $1,014 million, and operating income margin was 17.6 percent, up 1000 basis points due primarily to a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, higher Adjusted Operating Income1 margin and a favorable year-over-year change in acquisition-related items, partially offset by higher restructuring charges, higher intangible asset impairment charges, incremental costs due to geopolitical conflicts and higher costs incurred for the ERP System Implementation program. Adjusted Operating Income increased $199 million at constant currency and Adjusted Operating Income margin increased 190 basis points to 13.9 percent, driven primarily by lower raw material costs, lower manufacturing costs driven by productivity, higher net pricing and favorable volume/mix, partially offset by higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.Diluted EPS was $1.02, up 78.9 percent, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a favorable year-over-year change in acquisition-related items and lapping prior year pension participation charges. These favorable items were partially offset by lapping a prior year gain on equity method investment transactions, higher restructuring charges, higher costs incurred for the ERP System Implementation program, higher intangible asset impairment charges, lapping a prior year favorable resolution of tax matters and incremental costs due to geopolitical conflicts.Adjusted EPS was $0.78, up 5.5 percent on a constant currency basis. The increase in Adjusted EPS1 was driven by operating increases and fewer shares outstanding, partially offset by higher income tax, higher interest and other expense and lower equity method investment net earnings. Capital Return: The company returned $2.8 billion to shareholders in cash dividends and share repurchases in the first nine months of 2026. 2026 Outlook

Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including future changes in foreign currency rates. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

For 2026, the company reaffirms Organic Net Revenue growth of at least 2 percent and Adjusted EPS growth in the range of flat to 5 percent on a constant currency basis. The company also expects 2026 Free Cash Flow of approximately $3 billion. The company currently estimates currency translation would increase 2026 net revenue growth by approximately 1.5 percent3 and increase Adjusted EPS by $0.043.

Outlook is provided in the context of greater than usual volatility, including geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any potential tariff changes to United States-Mexico-Canada Agreement ("USMCA") compliant trade.

Conference Call

Mondelēz International will host a conference call for investors at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the company’s web site.

About Mondelēz International

Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.

End Notes

Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in both reported and constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.Net earnings attributable to Mondelēz International.Currency estimate is based on published rates from XE.com on October 22, 2026.
Additional Definitions

Emerging markets consist of the entire Latin America region; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,” “commitment,” “outlook,” “continue” or any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by ongoing macroeconomic volatility and uncertainty, including current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:

weakness and/or volatility in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation) and the instability of certain financial institutions;risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets;volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities;geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;competition and our response to channel shifts and pricing and other competitive pressures;pricing actions and customer and consumer responses to such actions;promotion and protection of our reputation and brand image;weakness in consumer spending and/or changes in consumer preferences and demand, including evolving health and wellness trends, and our ability to predict, identify, interpret and meet these changes;the outcome and effects on us of legal and tax proceedings and government investigations;use of information technology and third party service providers;unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program;our investments and our ownership interests in those investments;restructuring actions and other transformation initiatives not yielding the anticipated benefits;changes in the assumptions on which restructuring actions or other transformation initiatives are based;the impact of climate change on our supply chain and operations;global or regional health pandemics or epidemics;consolidation of retail customers and competition with retailer and other economy brands;changes in our relationships with customers, suppliers or distributors;management of our workforce and shifts in labor availability or labor costs;compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions, including evolving and potentially inconsistent federal, state, local and foreign requirements regarding food ingredients, additives, labeling and marketing;perceived or actual product quality issues or product recalls, or changing consumer, media, governmental or scientific perceptions of our products or their ingredients;failure to maintain effective internal control over financial reporting or disclosure controls and procedures;our ability to protect our intellectual property and intangible assets;tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;changes in currency exchange rates, controls and restrictions;volatility of and access to capital or other markets, interest rates, the effectiveness of our cash management programs and our liquidity;pension costs;significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; andthe risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Schedule 1Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Statements of Earnings(in millions of U.S. dollars and shares, except per share data)(Unaudited)            For the Three Months
Ended September 30,  For the Nine Months
Ended September 30,   2026   2025    2026   2025 Net revenues$9,967  $9,744   $29,402  $28,041 Cost of sales (6,043)  (7,132)   (18,689)  (20,062) Gross profit 3,924   2,612    10,713   7,979 Selling, general and administrative expenses (2,012)  (1,795)   (5,929)  (5,231)Asset impairments and exit costs (128)  (41)   (194)  (45)Gain on divestiture -   -    1   - Amortization of intangible assets (26)  (32)   (79)  (107) Operating income 1,758   744    4,512   2,596 Benefit plan non-service income/(expense) 27   (27)   85   (273)Interest and other expense, net (64)  (22)   (202)  (228) Earnings before income taxes 1,721   695    4,395   2,095 Income tax provision (424)  (137)   (1,016)  (521)Gain/(loss) on equity method investment transactions -   169    (3)  169 Equity method investment net earnings 11   19    48   54  Net earnings 1,308   746    3,424   1,797  less:  Noncontrolling interest earnings (3)  (3)   (11)  (11) Net earnings attributable to Mondelēz International$1,305  $743   $3,413  $1,786 Per share data:         Basic earnings per share attributable to Mondelēz International$1.02  $0.57   $2.66  $1.38  Diluted earnings per share attributable to Mondelēz International$1.02  $0.57   $2.66  $1.37                    Schedule 2Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in millions of U.S. dollars)(Unaudited)     September 30, December 31,  2026   2025 ASSETS   Cash and cash equivalents$1,628  $2,125 Trade receivables 4,919   3,903 Other receivables 955   955 Inventories 4,441   4,419 Other current assets 1,845   1,549 Total current assets 13,788   12,951 Property, plant and equipment, net 10,620   10,667 Operating lease right-of-use assets 738   731 Goodwill 24,025   24,336 Intangible assets, net 19,346   19,628 Prepaid pension assets 1,281   1,220 Deferred income taxes 82   336 Equity method investments 694   667 Other assets 1,202   951 TOTAL ASSETS$71,776  $71,487 LIABILITIES   Short-term borrowings$3,653  $2,688 Current portion of long-term debt 1,739   1,295 Accounts payable 9,510   10,139 Accrued marketing 2,899   2,787 Accrued employment costs 1,032   1,000 Other current liabilities 3,566   3,955 Total current liabilities 22,399   21,864 Long-term debt 16,351   17,222 Long-term operating lease liabilities 591   599 Deferred income taxes 3,587   3,530 Accrued pension costs 351   422 Accrued postretirement health care costs 73   74 Other liabilities 1,765   1,885 TOTAL LIABILITIES 45,117   45,596 EQUITY   Common Stock -   - Additional paid-in capital 32,377   32,322 Retained earnings 37,876   36,413 Accumulated other comprehensive losses (11,358)  (11,364)Treasury stock, at cost (32,287)  (31,533)Total Mondelēz International Shareholders' Equity 26,608   25,838 Noncontrolling interest 51   53 TOTAL EQUITY 26,659   25,891 TOTAL LIABILITIES AND EQUITY$71,776  $71,487          Schedule 3Mondelēz International, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in millions of U.S. dollars)(Unaudited)     For the Nine Months Ended September 30,  2026   2025 CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES   Net earnings$3,424  $1,797 Adjustments to reconcile net earnings to operating cash flows:   Depreciation and amortization 1,040   1,006 Stock-based compensation expense 133   84 Deferred income tax provision/(benefit) 293   (158)Asset impairments and accelerated depreciation 86   55 Gain on divestiture (1)  - Loss on equity method investment transactions 2   - Equity method investment net earnings (48)  (54)Distributions from equity method investments 45   45 Unrealized (gain)/loss on derivative contracts (1,091)  1,161 Contingent consideration adjustments (44)  (26)Other non-cash items, net (30)  109 Changes in assets and liabilities, net of acquisitions and divestitures:   Receivables, net (1,212)  (92)Inventories (89)  (967)Accounts payable (373)  (159)Other current assets 261   (30)Other current liabilities 352   (903)Change in pension and postretirement assets and liabilities, net (142)  249 Net cash provided by operating activities 2,606   2,117 CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES   Capital expenditures (947)  (881)Acquisitions, net of cash received -   (15)Proceeds from divestitures 1   4 Proceeds from derivative settlements 210   54 Payments for derivative settlements (455)  (165)Proceeds from investments 24   65 Proceeds from sales of property, plant and equipment and other 4   8 Net cash used in investing activities (1,163)  (930)CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES   Issuances of commercial paper, maturities greater than 90 days 2,280   - Repayments of commercial paper, maturities greater than 90 days (1,564)  - Net issuance of short-term borrowings 297   2,569 Long-term debt proceeds 1,074   1,594 Long-term debt repayments (1,271)  (1,782)Repurchases of Common Stock (845)  (1,893)Dividends paid (1,927)  (1,842)Other 4   8 Net cash used in financing activities (1,952)  (1,346)Effect of exchange rate changes on cash, cash equivalents and restricted cash (20)  225 Cash, cash equivalents and restricted cash:   (Decrease)/increase (529)  66 Balance at beginning of period 2,195   1,400 Balance at end of period$1,666  $1,466          Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)

NON-GAAP FINANCIAL MEASURES

In discussing its financial results and guidance, the company presents the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”): Organic Net Revenue growth, Adjusted Gross Profit, Adjusted Operating Income, Adjusted Earnings Per Share (“EPS”) and Free Cash Flow. The company also presents financial information, including certain of these non-GAAP financial measures, on a constant currency basis.

Management uses non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. The company believes that non-GAAP financial measures, when used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results. The company also believes that presenting these measures allows investors to view the company's performance using the same measures that management and our Board of Directors use in evaluating the company’s business performance and trends. However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES

The company’s primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results. As new events or circumstances arise, these definitions could change. When our definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions.

“Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures and currency-related items. The company believes that Organic net revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our emerging markets and developed markets, and these underlying measures are also reconciled to the most comparable U.S. GAAP financial measures.

“Adjusted Gross Profit” is defined as gross profit (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges, certain acquisition-related items, certain divestiture-related items, mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions, incremental costs due to geopolitical conflicts and certain operating costs from the ERP System Implementation program. The company also presents Adjusted Gross Profit margin, which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the company’s Adjusted Gross Profit on a constant currency basis.

“Adjusted Operating Income” is defined as operating income (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges; intangible asset impairment charges; divestiture-related items; acquisition-related items; remeasurement of net monetary position of highly inflationary countries; mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions; resolution of tax matters; incremental costs due to geopolitical conflicts and operating costs from the ERP System Implementation program. The company also presents Adjusted Operating Income margin, which is subject to the same adjustments as Adjusted Operating Income. The company also evaluates growth in our Adjusted Operating Income on a constant currency basis.

“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S. GAAP financial measure) from continuing operations excluding, when they occur, the impacts of the items listed in the Adjusted Operating Income definition as well as pension participation changes, initial impacts from enacted tax law changes and gains or losses on equity method investment transactions. The tax impacts of the items excluded from the company’s U.S. GAAP results were computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis.

“Free Cash Flow” is defined as net cash provided by operating activities (the most comparable U.S. GAAP financial measure) less capital expenditures. Free Cash Flow is the company’s primary measure used to monitor its cash flow performance.

See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable U.S. GAAP financial measures for the three and nine months ended September 30, 2026 and September 30, 2025. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the company’s results.

ITEMS IMPACTING COMPARABILITY OF FINANCIAL RESULTS
The company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The company identifies these based on how management views the company’s business; makes financial, operating and planning decisions; and evaluates the company’s ongoing performance. The below items are adjusted for in the company’s non-GAAP financial measures to better facilitate comparisons of its underlying performance across periods, as they are highly variable or unusual and of a size that may substantially impact its reported operations for a period. In addition, the company discloses the impact of currency-related items on its financial results to reflect results on a constant currency basis. See below for a description of adjustments to the company’s U.S. GAAP financial measures included herein.

Restructuring charges – Beginning in the fourth quarter of 2025, the company initiated new restructuring actions to reduce its cost structure and streamline its operations. The charges associated with those actions primarily relate to severance and other implementation costs. The company completed its previous Simplify to Grow Program in 2024. Following the completion of that earlier restructuring program, any adjustments to the liabilities for previously recorded charges, which were immaterial for each period presented, continue to be reflected within this item.

Intangible asset impairment charges – Reflects non-cash impairments of certain of the company's brands in connection with our indefinite-life intangible asset impairment testing.

Mark-to-market impacts from derivatives – The company excludes unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from its non-GAAP earnings measures. The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized. Since the company purchases commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, the company makes this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of its underlying operating performance across periods.

Acquisition-related items – Includes acquisition-related costs, acquisition integration costs, contingent consideration adjustments, inventory step-ups and gains from acquisitions. Acquisition-related costs include third-party advisor, investment banking and legal fees. Acquisition integration costs include costs related to the integration of operations from acquisitions. Contingent consideration adjustments include any changes made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense. Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains from the remeasurement of an existing noncontrolling investment to fair value when the company acquires a controlling interest in the investee.

Divestiture-related items – Includes operating results from divestitures, divestiture-related costs and gains or losses on divestitures. Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments. Divestiture-related costs include costs incurred in relation to the preparation and completion of divestiture transactions (including one-time costs such as severance related to the elimination of stranded costs) as well as costs incurred associated with publicly announced processes to sell businesses.

Incremental costs due to geopolitical conflicts – Reflects impacts related to the ongoing conflicts in the Middle East and Ukraine. Includes costs related to conflict-related destruction of inventory, transportation surcharges, evacuation costs and committed compensation.

ERP System Implementation costs – In July 2024, the company's Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade the company global ERP and supply chain systems, which is comprised of both capital expenditures and operating expenses, of which a majority is expected to be operating expenses. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations. These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of our existing SAP financial systems and various other expenses, all associated with the implementation of our information technology upgrades. During the quarter ended September 30, 2026, the company completed the implementation of the new ERP system for our North America and Latin America segments, which was the first phase of the multi-phase global ERP implementation program. The new ERP systems for the remaining segments continue to be implemented in future phases, with expected completion by year-end 2028.

Remeasurement of net monetary position of highly inflationary countries – The company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary. The company excludes remeasurement gains and losses of the monetary assets and liabilities of its subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective monetary assets or liabilities from its non-GAAP earnings measures.

Pension participation changes – Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including settlement losses from the full or partial buy-out of the company's pension plans, as well as costs incurred when employee groups are withdrawn from multiemployer pension plans. The company excludes these charges from its non-GAAP results because those amounts do not reflect the company's ongoing pension obligations.

Resolution of tax matters – Consists of the reversals and settlements of unusual and significant indirect tax matters. Due to the unique nature of these resolutions, the company believes it to be infrequent and therefore excludes it from our non-GAAP earnings measures to better facilitate comparisons of the company's underlying operating performance across periods.

Initial impacts from enacted tax law changes – Initial impacts from enacted tax law changes include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms. The company excludes initial impacts from enacted tax law changes from the non-GAAP financial measures as they do not reflect the company's ongoing tax obligations under the enacted tax law.

Gains and losses on equity method investment transactions – The company excludes gains and losses from partial or full sales of equity method investments, as well as impairments or other non-routine transactions related to those investments.

Currency-related items – Management also evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company's non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and extreme pricing increases in Argentina.

Currency translation rate changes – the company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company’s financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period. Therefore, currency translation rate changes are equal to current period local currency operating results multiplied by the change in average foreign currency exchange rates between the current fiscal period and the corresponding period of the prior fiscal year.Extreme Pricing – during December 2023, the Argentinean peso significantly devalued. The peso's devaluation and potential resulting distortion on the company's non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in our decision to exclude the impact of pricing increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 2024. The benchmark of 26% represents the minimum annual inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S. GAAP. OUTLOOK
The company’s Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2026 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, intangible asset impairment charges, acquisitions and divestitures. Because GAAP financial measures on a forward-looking basis are not accessible and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the outlook. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2026 because the company is unable to predict during this period the impacts from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile the projected Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense and Adjusted Effective Tax Rate to the company's projected reported diluted EPS growth, reported interest and other expense, net, and reported effective tax rate, respectively, for full-year 2026 due to several factors, which could include: the company's ability to predict during this period mark-to-market impacts from commodity and foreign currency derivative contracts, impacts of any impairment charges that may arise in a future period and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile the projected Free Cash Flow to the projected net cash from operating activities for full-year 2026 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amounts of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.

Schedule 4Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Revenues(in millions of U.S. dollars)(Unaudited)               For the Three Months Ended September 30, 2026Latin America AMEA Europe North America Mondelēz International  Emerging Markets Developed MarketsReported (GAAP)$1,387  $2,182  $3,552  $2,846  $9,967   $4,072  $5,895 Currency-related items (64)  (10)  45   4   (25)   (30)  5 Organic (Non-GAAP)$1,323  $2,172  $3,597  $2,850  $9,942   $4,042  $5,900                For the Three Months Ended September 30, 2025              Reported (GAAP)$1,238  $2,017  $3,674  $2,815  $9,744   $3,881  $5,863 Divestitures -   -   -   (9)  (9)   -   (9)Organic (Non-GAAP)$1,238  $2,017  $3,674  $2,806  $9,735   $3,881  $5,854                % Change - Reported (GAAP) 12.0%  8.2%  (3.3)%  1.1%  2.3%   4.9%  0.5%Divestitures- pp - pp - pp 0.3 pp 0.1 pp  - pp 0.2 ppCurrency-related items (5.1)  (0.5)  1.2   0.2   (0.3)   (0.8)  0.1 % Change - Organic (Non-GAAP) 6.9%  7.7%  (2.1)%  1.6%  2.1%   4.1%  0.8%               Vol/Mix0.8 pp 5.5 pp 1.6 pp - pp 1.8 pp  2.2 pp 1.5 ppPricing 6.1   2.2   (3.7)  1.6   0.3    1.9   (0.7)                              For the Nine Months Ended September 30, 2026Latin America AMEA Europe North America Mondelēz International  Emerging Markets Developed MarketsReported (GAAP)$4,109  $6,457  $10,800  $8,036  $29,402   $12,130  $17,272 Currency-related items (228)  (91)  (382)  (6)  (707)   (334)  (373)Organic (Non-GAAP)$3,881  $6,366  $10,418  $8,030  $28,695   $11,796  $16,899                For the Nine Months Ended September 30, 2025              Reported (GAAP)$3,635  $5,854  $10,636  $7,916  $28,041   $11,242  $16,799 Divestitures -   -   -   (30)  (30)   -   (30)Organic (Non-GAAP)$3,635  $5,854  $10,636  $7,886  $28,011   $11,242  $16,769                % Change - Reported (GAAP) 13.0%  10.3%  1.5%  1.5%  4.9%   7.9%  2.8%Divestitures- pp - pp - pp 0.4 pp 0.1 pp  - pp 0.2 ppCurrency-related items (6.2)  (1.6)  (3.5)  (0.1)  (2.6)   (3.0)  (2.2)% Change - Organic (Non-GAAP) 6.8%  8.7%  (2.0)%  1.8%  2.4%   4.9%  0.8%               Vol/Mix(0.6)pp 5.5 pp (1.2)pp 0.2 pp 0.6 pp  1.4 pp 0.2 ppPricing 7.4   3.2   (0.8)  1.6   1.8    3.5   0.6  Schedule 5aMondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited)                      Gross Profit  Operating IncomeFor the Three Months Ended September 30, 2026Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$3,924   $170  $372  $339  $448  $543  $(88) $(26) $- $1,758 Restructuring charges 1    3   -   42   10   -   -   -   -  55 Intangible asset impairment charges -    -   -   38   26   -   -   -   -  64 Mark-to-market (gains)/losses from derivatives (543)   -   -   -   -   (543)  -   -   -  (543)Acquisition-related items (1)   1   (46)  2   -   -   1   -   -  (42)Divestiture-related items 1    -   -   -   -   -   -   -   -  - Incremental costs due to geopolitical conflicts 19    -   5   17   -   -   -   -   -  22 ERP System Implementation costs 6    20   2   18   27   -   (1)  -   -  66 Remeasurement of net monetary position -    2   (1)  3   -   -   -   -   -  4 Adjusted (Non-GAAP)$3,407   $196  $332  $459  $511  $-  $(88) $(26) $- $1,384 Currency-related items (29)   (16)  (8)  7   -   -   2   1   -  (14)Adjusted @ Constant FX (Non-GAAP)$3,378   $180  $324  $466  $511  $-  $(86) $(25) $- $1,370                      % Change - Reported (GAAP) 50.2%   15.6%  86.9%  23.3%  (18.1)% n/m  (100.0)%  18.8% n/m  136.3%% Change - Adjusted (Non-GAAP) 14.9%   29.8%  33.3%  53.0%  (6.4)% n/m  (104.7)%  18.8% n/m  18.2%% Change - Adjusted @ Constant FX (Non-GAAP) 14.0%   19.2%  30.1%  55.3%  (6.4)% n/m  (100.0)%  21.9% n/m  17.0%                     Reported Margin % 39.4%   12.3%  17.0%  9.5%  15.7%          17.6%Reported Margin pp change12.6 pp  0.4 pp 7.1 pp 2.0 pp (3.7)pp         10.0 ppAdjusted Margin % 34.2%   14.1%  15.2%  12.9%  18.0%          13.9%Adjusted Margin pp change3.8 pp  1.9 pp 2.9 pp 4.7 pp (1.5)pp         1.9 pp                      Gross Profit  Operating IncomeFor the Three Months Ended September 30, 2025Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$2,612   $147  $199  $275  $547  $(348) $(44) $(32) $- $744 Restructuring charges (2)   (1)  -   (4)  (1)  -   -   -   -  (6)Intangible asset impairment charges -    3   12   18   -   -   -   -   -  33 Mark-to-market (gains)/losses from derivatives 348    -   -   -   -   348   -   -   -  348 Acquisition-related items 1    2   37   3   (21)  -   (3)  -   -  18 Divestiture-related items (1)   -   -   -   -   -   -   -   -  - ERP System Implementation costs 5    12   -   3   21   -   5   -   -  41 Remeasurement of net monetary position 1    4   1   5   -   -   (1)  -   -  9 Resolution of tax matters -    (16)  -   -   -   -   -   -   -  (16)Adjusted (Non-GAAP)$2,964   $151  $249  $300  $546  $-  $(43) $(32) $- $1,171                      Reported Margin % 26.8%   11.9%  9.9%  7.5%  19.4%          7.6%Adjusted Margin % 30.4%   12.2%  12.3%  8.2%  19.5%          12.0% Schedule 5bMondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited)                      Gross Profit  Operating IncomeFor the Nine Months Ended September 30, 2026Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$10,713   $485  $952  $1,015  $1,263  $1,097  $(222) $(79) $1  $4,512 Restructuring charges 1    6   -   88   16   -   1   -   -   111 Intangible asset impairment charges -    -   -   38   26   -   -   -   -   64 Mark-to-market (gains)/losses from derivatives (1,097)   -   -   -   -   (1,097)  -   -   -   (1,097)Acquisition-related items (1)   2   (30)  4   (12)  -   1   -   -   (35)Divestiture-related items 1    -   -   -   -   -   -   -   (1)  (1)Incremental costs due to geopolitical conflicts 37    -   22   18   -   -   -   -   -   40 ERP System Implementation costs 26    55   5   39   80   -   (5)  -   -   174 Remeasurement of net monetary position -    5   2   13   -   -   -   -   -   20 Adjusted (Non-GAAP)$9,680   $553  $951  $1,215  $1,373  $-  $(225) $(79) $-  $3,788 Currency-related items (237)   (44)  (23)  (37)  (1)  -   2   3   -   (100)Adjusted @ Constant FX (Non-GAAP)$9,443   $509  $928  $1,178  $1,372  $-  $(223) $(76) $-  $3,688                      % Change - Reported (GAAP) 34.3%   15.8%  17.1%  (18.9)%  (15.0)% n/m  (42.3)%  26.2% n/m  73.8%% Change - Adjusted (Non-GAAP) 6.3%   22.3%  6.4%  (5.4)%  (6.0)% n/m  (44.2)%  26.2% n/m  (1.0)%% Change - Adjusted @ Constant FX (Non-GAAP) 3.7%   12.6%  3.8%  (8.3)%  (6.1)% n/m  (42.9)%  29.0% n/m  (3.7)%                     Reported Margin % 36.4%   11.8%  14.7%  9.4%  15.7%          15.3%Reported Margin pp change7.9 pp  0.3 pp 0.8 pp (2.4)pp (3.1)pp         6.0 ppAdjusted Margin % 32.9%   13.5%  14.7%  11.3%  17.1%          12.9%Adjusted Margin pp change0.4 pp  1.1 pp (0.6)pp (0.8)pp (1.4)pp         (0.8)pp                      Gross Profit  Operating IncomeFor the Nine Months Ended September 30, 2025Mondelēz International  Latin America AMEA Europe North America Unrealized G/(L) on Hedging Activities General Corporate Expenses Amortization of Intangibles Other Items Mondelēz InternationalReported (GAAP)$7,979   $419  $813  $1,251  $1,486  $(1,110) $(156) $(107) $-  $2,596 Restructuring charges (3)   (2)  -   (8)  (1)  -   (1)  -   -   (12)Intangible asset impairment charges -    3   12   18   -   -   -   -   -   33 Mark-to-market (gains)/losses from derivatives 1,114    -   -   -   -   1,110   -   -   -   1,110 Acquisition-related items (1)   7   64   3   (82)  -   (3)  -   -   (11)Divestiture-related items (2)   -   -   (7)  (1)  -   -   -   -   (8)Incremental costs due to geopolitical conflicts -    -   -   1   -   -   -   -   -   1 ERP System Implementation costs 18    34   3   11   59   -   4   -   -   111 Remeasurement of net monetary position -    7   2   15   -   -   -   -   -   24 Resolution of tax matters -    (16)  -   -   -   -   -   -   -   (16)Adjusted (Non-GAAP)$9,105   $452  $894  $1,284  $1,461  $-  $(156) $(107) $-  $3,828                      Reported Margin % 28.5%   11.5%  13.9%  11.8%  18.8%          9.3%Adjusted Margin % 32.5%   12.4%  15.3%  12.1%  18.5%          13.7% Schedule 6aMondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP Measures Tax Rate, Net Earnings and Diluted EPS(in millions of U.S. dollars and shares, except per share data)(Unaudited)                      For the Three Months Ended September 30, 2026Operating Income Benefit plan non-service expense / (income)  Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Loss on equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$1,758  $(27) $64  $1,721  $424  24.6% $-  $(11) $3 $1,305  $1.02 Restructuring charges 55   -   -   55   11     -   -   -  44   0.04 Intangible asset impairment charges 64   -   -   64   16     -   -   -  48   0.04 Mark-to-market (gains)/losses from derivatives (543)  -   -   (543)  (110)    1   -   -  (434)  (0.34)Acquisition-related items (42)  -   -   (42)  2     -   -   -  (44)  (0.03)Incremental costs due to geopolitical conflicts 22   -   -   22   4     -   -   -  18   0.01 ERP System Implementation costs 66   -   -   66   17     -   -   -  49   0.04 Remeasurement of net monetary position 4   -   -   4   -     -   -   -  4   - Pension participation changes -   -   (2)  2   -     -   -   -  2   - Adjusted (Non-GAAP)$1,384  $(27) $62  $1,349  $364  27.0% $1  $(11) $3 $992  $0.78 Currency-related items                   (10)  (0.01)Adjusted @ Constant FX (Non-GAAP)                  $982  $0.77 Diluted Average Shares Outstanding                     1,280                       % Change - Reported (GAAP)                   75.6%  78.9%% Change - Adjusted (Non-GAAP)                   4.5%  6.8%% Change - Adjusted @ Constant FX (Non-GAAP)                   3.5%  5.5%                      For the Three Months Ended September 30, 2025Operating Income Benefit plan non-service expense / (income)  Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Gain on equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$744  $27  $22  $695  $137  19.7% $(169) $(19) $3 $743  $0.57 Restructuring charges (6)  -   -   (6)  (1)    -   -   -  (5)  - Intangible asset impairment charges 33   -   -   33   9     -   -   -  24   0.02 Mark-to-market (gains)/losses from derivatives 348   -   3   345   71     -   -   -  274   0.21 Acquisition-related items 18   -   -   18   (5)    -   -   -  23   0.02 ERP System Implementation costs 41   -   -   41   10     -   -   -  31   0.02 Remeasurement of net monetary position 9   -   -   9   -     -   -   -  9   0.01 Pension participation changes -   (54)  (2)  56   14     -   -   -  42   0.03 Resolution of tax matters (16)  -   16   (32)  (10)    -   -   -  (22)  (0.02)Initial impacts from enacted tax law changes -   -   -   -   1     -   -   -  (1)  - Gain on equity method investment transactions -   -   -   -   -     169   -   -  (169)  (0.13)Adjusted (Non-GAAP)$1,171  $(27) $39  $1,159  $226  19.5% $-  $(19) $3 $949  $0.73 Diluted Average Shares Outstanding                     1,296  Schedule 6bMondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP Measures Tax Rate, Net Earnings and Diluted EPS(in millions of U.S. dollars and shares, except per share data)(Unaudited)                      For the Nine Months Ended September 30, 2026Operating Income Benefit plan non-service expense / (income)  Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Loss on equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$4,512  $(85) $202  $4,395  $1,016  23.1% $3  $(48) $11 $3,413  $2.66 Restructuring charges 111   -   -   111   24     -   -   -  87   0.07 Intangible asset impairment charges 64   -   -   64   16     -   -   -  48   0.04 Mark-to-market (gains)/losses from derivatives (1,097)  -   -   (1,097)  (223)    -   -   -  (874)  (0.68)Acquisition-related items (35)  -   -   (35)  (1)    -   -   -  (34)  (0.03)Divestiture-related items (1)  -   -   (1)  -     -   -   -  (1)  - Incremental costs due to geopolitical conflicts 40   -   -   40   4     -   -   -  36   0.03 ERP System Implementation costs 174   -   -   174   45     -   -   -  129   0.10 Remeasurement of net monetary position 20   -   -   20   -     -   -   -  20   0.01 Pension participation changes -   3   (6)  3   -     -   -   -  3   - Initial impacts from enacted tax law changes -   -   -   -   29     -   -   -  (29)  (0.02)Gain on marketable securities -   -   -   -   6     -   -   -  (6)  - Loss on equity method investment transactions -   -   -   -   -     (2)  -   -  2   - Adjusted (Non-GAAP)$3,788  $(82) $196  $3,674  $916  24.9% $1  $(48) $11 $2,794  $2.18 Currency-related items                   (88)  (0.07)Adjusted @ Constant FX (Non-GAAP)                  $2,706  $2.11 Diluted Average Shares Outstanding                     1,284                       % Change - Reported (GAAP)                   91.1%  94.2%% Change - Adjusted (Non-GAAP)                   (2.2)%  (0.9)%% Change - Adjusted @ Constant FX (Non-GAAP)                   (5.3)%  (4.1)%                      For the Nine Months Ended September 30, 2025Operating Income Benefit plan non-service expense / (income)  Interest and other expense, net Earnings before income taxes Income taxes Effective tax rate Gain on equity method investment transactions Equity method investment net losses / (earnings) Non-controlling interest earnings Net Earnings attributable to Mondelēz International Diluted EPS attributable to Mondelēz InternationalReported (GAAP)$2,596  $273  $228  $2,095  $521  24.9% $(169) $(54) $11 $1,786  $1.37 Restructuring charges (12)  -   -   (12)  (3)    -   -   -  (9)  (0.01)Intangible asset impairment charges 33   -   -   33   9     -   -   -  24   0.02 Mark-to-market (gains)/losses from derivatives 1,110   -   (1)  1,111   223     -   -   -  888   0.68 Acquisition-related items (11)  -   -   (11)  (19)    -   -   -  8   0.01 Divestiture-related items (8)  -   -   (8)  (1)    -   -   -  (7)  - Incremental costs due to geopolitical conflicts 1   -   -   1   -     -   -   -  1   - ERP System Implementation costs 111   -   -   111   28     -   -   -  83   0.06 Remeasurement of net monetary position 24   -   -   24   -     -   -   -  24   0.02 Pension participation changes -   (336)  (7)  343   87     -   -   -  256   0.20 Resolution of tax matters (16)  -   16   (32)  (10)    -   -   -  (22)  (0.02)Initial impacts from enacted tax law changes -   -   -   -   4     -   -   -  (4)  - Gain on marketable securities -   -   -   -   3     -   -   -  (3)  - Gain on equity method investment transactions -   -   -   -   -     169   -   -  (169)  (0.13)Adjusted (Non-GAAP)$3,828  $(63) $236  $3,655  $842  23.0% $-  $(54) $11 $2,856  $2.20 Diluted Average Shares Outstanding                     1,300  Schedule 7Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Cash Provided by Operating Activities to Free Cash Flow(in millions of U.S. dollars)(Unaudited)      For the Nine Months Ended September 30,   2026     2025   $ ChangeNet Cash Provided by Operating Activities (GAAP)$2,606  $2,117  $489 Capital Expenditures (947)  (881)  (66)Free Cash Flow (Non-GAAP) $1,659  $1,236  $423  Contacts:Tracey Noe (Media)Shep Dunlap (Investors) 1-847-943-56781-847-943-5454 [email protected]@mdlz.com   

The company, which owns Oreo and Ritz, posted a profit of $1.31 billion in the third quarter, fueled by growth outside of its core North America and Europe business.

IRVINE, Calif.--(BUSINESS WIRE)--Rivian Automotive, Inc. (NASDAQ: RIVN), an American automotive technology company that develops and manufactures category-defining electric vehicles as well as vertically integrated technologies and offers a suite of value-added services, today announced its third quarter 2026 financial results. RJ Scaringe, Rivian Founder and CEO, said: “We had great results with R2 becoming our best selling vehicle by volume in the third quarter. Customer and media feedback on.

Rivian Automotive beat Wall Street's third-quarter earnings expectations as it ramped up production of its new R2 entry-level SUV that the company has promised investors will lead it to profitability.

Here's how Rivian performed in the period ended Sept. 30, compared with average estimates compiled by LSEG:

Loss per share: 48 cents adjusted vs. loss of 62 cents expectedRevenue: $2.16 billion vs. $1.99 billion expectedShares of Rivian were up roughly 7% during afterhours trading Thursday, after hitting a new 52-week low of $11.38 earlier in the day. The stock closed at $11.45 a share, down 1.9%

The electric vehicle maker also revised its 2026 guidance to mark expected improvements in its vehicle deliveries, pre-tax adjusted earnings and capital expenditures.

The new guidance calls for a pre-tax adjusted loss of between $1.75 billion and $1.85 billion — a $100 million improvement at the midpoint from its prior guidance — vehicle deliveries of between 67,000 and 70,000 units, up from at least 65,000; and capital expenditures of between $1.4 billion and $1.5 billion, $300 million less at the midpoint.

Rivian attributed the improvement in its pre-tax adjusted earnings guidance to better-than-expected revenue related to its sales of regulatory credits, an IEEPA tariff refund receivable in the third quarter and its expected increase in vehicle deliveries.

The R2 — the first deliveries of which arrived to customers in June — has become Rivian's best-selling model and was responsible for "much of the gain quarter-over-quarter," the company said.

Rivian delivered a record 19,248 units from July through September. The company does not disclose deliveries by vehicle.

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The EV maker remains unprofitable overall but continued to narrow its losses during the quarter. The company reported a net loss attributable to common stockholders of $913 million, compared with a loss of $1.17 billion during the third quarter of 2025.

Rivian's gross profit, which is closely monitored by investors, was $176 million during the third quarter, up from $24 million a year earlier. Its adjusted earnings before interest, taxes, depreciation and amortization was a loss of $435 million, a $167 million improvement from the same period last year.

The company reported that its software and services segment continues to grow, generating $605 million in revenue and a gross profit of $256 million, a 42% margin. That compares to its automotive operations, which recorded nearly $1.55 billion in revenue and a gross loss of $80 million.

Also on Thursday, Rivian reiterated that it expects the R2, a smaller and less expensive sibling to its current luxury R1S SUV, to have a positive gross margin by the end of the year. CEO RJ Scaringe has said the company needs to scale beyond current R2 production plans of 160,000 units in order to achieve overall profitability.

"That ramp-up is critical for us getting to positive gross margin on R2 and that ultimately will contribute to positive gross margin for the business," Scaringe told CNBC's Phil LeBeau during an interview Thursday. "We're going to see that through the end of the quarter and the unit economics will continue to grow … into Q1 of next year as well."

Rivian on Thursday said its cash, cash equivalents and short-term investments balance was $5.5 billion, up from $5.3 billion to end the second quarter.

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Rivian Automotive Inc. (NASDAQ:RIVN) reported third-quarter revenue of $2.155 billion on Thursday. That's up 38% year-over-year.

Rising digital sales and price hikes are helping Chipotle offset inflation. The fast-casual leader plans to open as many as 385 new restaurants in 2027.

Stan Druckenmiller just backed a regulated U.S. push for Hyperliquid, sending HYPE surging toward a record it has failed to break twice before. The question now is whether this time something is genuinely different, or whether sellers are once again…

Stan Druckenmiller, a renowned hedge fund manager, has endorsed a plan to introduce regulated U.S. perpetual futures for Hyperliquid (CRYPTO:HYPE). HYPE trades at $95, up 18.3% in 24 hours and 22.4% over the past week. The token is only 3.3% below its intraday record high of $98, achieved on September 23, 2026. HYPE ranks as the 11th largest cryptocurrency by market capitalization.

The recent price rally follows a report that Intercontinental Exchange (NYSE:ICE | ICE Price Prediction), the parent company of the New York Stock Exchange, plans to launch a U.S. market for Hyperliquid perpetual futures. These contracts do not expire, allowing traders to maintain leveraged positions as long as they provide collateral. ICE is collaborating with trade(xyz), a platform already operating Hyperliquid stock and index perpetual contracts.

Druckenmiller expressed his enthusiasm on X, saying, “I am excited to be an investor in trade(xyz) as they partner with ICE to bring 24/7 perpetual futures on Hyperliquid to the United States.”

HYPE has risen 272.3% in 2026 from a December 31, 2025 closing price of $25. The current $98 record is a key focus for investors. Whether it’s too late to buy HYPE at this price point will hinge on whether momentum can push it past this peak or if it fades like the last two attempts.

More Supply Means HYPE Needs More Investment to Reach New Highs

Market cap, calculated by multiplying price by circulating supply, shows why a lower price can still have a higher valuation. HYPE’s market cap stands at $22.67 billion at $95. On September 22, 2026, it closed at a record $97, with a market cap of $21.62 billion.

HYPE is valued higher despite a lower price because more tokens are in circulation. As of October 28, 2026, Hyperliquid’s circulating supply rose to about 239 million tokens from roughly 222 million after a scheduled unlock released tokens held by early contributors. A larger supply means buyers must spend more to keep the price stable, so a new high above $98 will require a larger market cap than September’s.

HYPE continues to trade above its recent averages: $80 for the 20-day average, $85 for the 50-day average, and $66 for the 200-day average, a trend that could favor buyers going forward.

Stan Druckenmiller and ICE Provide a Regulated Path for Hyperliquid in the U.S.

trade(xyz) operates on HIP-3, a Hyperliquid feature letting external developers build their own markets. Hyperliquid earns a share of every trading fee on HIP-3. While the U.S. market is still in the planning stages, opposition remains strong. Intercontinental Exchange and CME Group (NASDAQ:CME) have urged U.S. regulators to limit Hyperliquid’s operations.

CME’s Terry Duffy recently said that if Jeff Yan, Hyperliquid’s founder, intends to compete in the United States, he must understand how to operate within U.S. legal frameworks.

Arthur Firstov, chief business officer at Mercuryo, said traditional finance exchanges are watching closely, noting that incumbents are closely monitoring the introduction of perpetual contracts on regulated U.S. markets, complete with compliance and anti-money laundering measures.

Buybacks and Whale Activity Send Mixed Signals on Demand

Hyperliquid operates a cryptocurrency exchange and employs the trading fees it generates to buy back HYPE tokens on the open market through its Assistance Fund. This strategy helped drive HYPE’s price from a low of $21 on January 20, 2026, to its record close of $97 on September 22, 2026. Several U.S. trading platforms have also added HYPE trading, giving investors a secure way to participate alongside the volume ICE’s plan could bring.

Coin whales, or wallets with large amounts of HYPE, are split on the rally. According to reports from Lookonchain, five whales opened long positions that benefit from price increases, totaling 597,912 HYPE worth $52.7 million over a few hours. However, another whale sold 694,310 HYPE valued at $53.3 million over five days. This buying and selling nearly cancels out, leaving large holders divided on the rally.

HYPE Struggles to Maintain Its High After Two Previous Attempts

HYPE has attempted to remain within 5% of its record high on several occasions between September 18 and September 26, 2026, including the record close of $97. However, by September 29, it had dropped to $86.

A second attempt in October saw HYPE close at $94 on October 5 before it faltered again. It fell to $84 by October 8 and hit a 30-day low close of $76 on October 25. With sellers having thwarted two previous rallies at this level, HYPE will face significant pressure during its third attempt, as investors remain wary of past disappointments.

Is It Too Late to Buy HYPE Near Its Record High? Whether it’s a good time to buy crypto depends on more than just charts. Still, Hyperliquid’s trajectory toward a new high looks solid. ICE’s plan gives it a regulated U.S. channel it lacked at the September peak, making a new record close more likely by year-end. Anyone buying at $95 is paying up near a level that has pushed HYPE back twice already. Our Breakout Buyer’s Rulebook covers ten rules for situations like this.

For HYPE to close above $98, ICE and trade(xyz) must clear regulatory review. Higher fees would then feed more Assistance Fund buying. If HYPE fails to break through, it could drop below the 50-day average of $85, toward its 20-day average of $80 or the $76 October low. The clearest sign of a shift is a daily close above $98; holding that level could turn it into new support.

Contact [email protected] for any questions or corrections.

Key Takeaways Incyte's Q3 revenues rose 14% to $1.56 billion, beating estimates despite a $3.60 adjusted loss per share.Opzelura sales increased 36% to $254.9 million, while Niktimvo and Zynyz also delivered strong growth.Incyte raised 2026 net sales guidance to $5.21-$5.30 billion, driven by continued commercial momentum.
Incyte Corporation (INCY - Free Report) incurred a third-quarter 2026 adjusted loss of $3.60 per share, narrower than the Zacks Consensus Estimate of a loss of $3.99 per share. The company had reported adjusted earnings of $2.26 per share in the year-ago quarter. The loss was primarily due to higher in-process research and development expenses related to the acquisition of Vega Therapeutics.

Total revenues were $1.56 billion, up 14% year over year, driven primarily by the sustained performance of its lead drug, Jakafi (ruxolitinib) and other marketed products. The top line beat the Zacks Consensus Estimate of $1.48 billion.

All percentages mentioned below are on a reported basis.

INCY's Q3 Results in DetailIn the third quarter of 2026, total net product sales increased 14% year over year to $1.32 billion, driven by higher demand across marketed products.

Revenues from the sale of Jakafi, a first-in-class JAK1/JAK2 inhibitor approved for polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease (GVHD), came in at approximately $827 million, up 4% from the year-ago quarter. Growth was primarily driven by a 12% increase in paid demand and higher sales across all indications. Jakafi's sales were in line with the Zacks Consensus Estimate of $827 million.

Opzelura (ruxolitinib) cream, approved for atopic dermatitis and vitiligo, generated $254.9 million in sales, which rose 36% year over year, beating the Zacks Consensus Estimate of $230 million. Growth was driven by increased patient demand across both indications and improved net pricing following the second-quarter 2026 settlement.

The hematology and oncology portfolio generated revenues of $235 million, up 38% year over year, driven by increased demand for Niktimvo, Zynyz and Monjuvi/Minjuvi.

The newly approved medicine Zynyz (retifanlimab-dlwr) generated sales of $58.3 million, reflecting a 157% increase and beating the Zacks Consensus Estimate of $49.7 million. Minjuvi's revenues totaled $54.6 million, up 30% from the year-ago quarter. The figure was in line with the Zacks Consensus Estimate of $55 million. Incyte gained exclusive global rights for tafasitamab from MorphoSys AG in 2024. The drug is marketed as Monjuvi in the United States and as Minjuvi in the ex-U.S. markets.

Incyte and partner Syndax Pharmaceuticals obtained FDA approval for axatilimab-csfr, an anti-CSF-1R antibody, for the treatment of GVHD after the failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg. The candidate was approved under the brand name Niktimvo. The drug is Incyte’s second approved treatment for chronic GVHD (third-line) and was launched in the United States during the first quarter of 2025. The drug recorded $67.4 million in sales in the third quarter of 2026, up 47% on a year-over-year basis, driven by strong uptake and beat the Zacks Consensus Estimate of $64 million.

Meanwhile, net product revenues of Iclusig were $33.5 million, down 11% year over year. The figure missed the Zacks Consensus Estimate of $35.2 million. Pemazyre sales declined 7% to $21.2 million and missed the Zacks Consensus Estimate of $23.5 million.

Shares of Incyte have rallied 18.3% year to date compared with the industry’s 7.2% growth.

Image Source: Zacks Investment Research

Jakafi is marketed by Incyte in the United States and by Novartis (NVS - Free Report) as Jakavi in ex-U.S. markets. Jakavi royalty revenues from Novartis for commercialization in ex-U.S. markets rose 5% year over year to $132.5 million. Jakavi royalties beat the Zacks Consensus Estimate of $131 million.

Incyte also receives royalties from the sales of Tabrecta (capmatinib) for the treatment of adult patients with metastatic non-small-cell lung cancer. Its partner, Novartis, has exclusive worldwide development and commercialization rights for Tabrecta. Royalty revenues from the drug’s sales amounted to $6.8 million, up 5% year over year. The reported figure missed the Zacks Consensus Estimate of $7.7 million.

Olumiant’s (baricitinib) product royalty revenues from Eli Lilly (LLY - Free Report) totaled $39.1 million, up 5% year over year. The figure missed the Zacks Consensus Estimate of $39.9 million. Incyte has a collaboration agreement with Eli Lilly for Olumiant. The drug is a once-daily oral JAK inhibitor discovered by Incyte and licensed to LLY. It is approved for several types of autoimmune diseases.

Adjusted research and development expenses totaled $1.75 billion, up 274% year over year, primarily due to the $1.23 billion one-time in-process R&D charge associated with the acquisition of Vega Therapeutics and continued investment in late-stage development assets.

Adjusted selling, general and administrative (SG&A) expenses increased 10% to $339.1 million, primarily due to pre-launch activities.

INCY’s cash, cash equivalents and marketable securities amounted to $3.9 billion as of Sept. 30, 2026 compared with $4.5 billion recorded as of June 30, 2026.

INCY Raises 2026 GuidanceIncyte raised its 2026 total net sales guidance to $5.21-$5.30 billion, up from the previously projected $5.13-$5.26 billion, reflecting continued commercial momentum.

While Incyte continues to expect Jakafi revenues in the range of $3.22-$3.27 billion in 2026, it expects Opzelura net product revenues to be in the range of $1.10-$1.12 billion, up from the previously guided range of $1.05-$1.10 billion.

Adjusted R&D and SG&A expenses are still expected to total $4.625-$4.695 billion in 2026, including acquisition-related costs.

INCY's Recent Product & Pipeline UpdatesIncyte’s Monjuvi/Minjuvi is under regulatory review globally for newly diagnosed diffuse large B-cell lymphoma (DLBCL), with potential U.S. approval and launch expected in the first quarter of 2027.

In July, the European Commission approved Opzelura for moderate atopic dermatitis in adults, marking its second approved indication in the European Union.

The Committee for Medicinal Products for Human Use issued a positive opinion recommending the approval of povorcitinib (Povofortay) for the treatment of active moderate to severe HS in adults who have responded inadequately to, or who are intolerant or contraindicated to, an anti-TNF therapy. A European regulatory decision is expected in the fourth quarter, while potential U.S. approval and launch are anticipated in the first quarter of 2027.

INCY's Zacks Rank & A Stock to ConsiderIncyte currently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the biotech sector is TG Therapeutics (TGTX - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. During the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 92.6% year to date.

TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.

New York, New York--(Newsfile Corp. - October 29, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of DICK'S Sporting Goods, Inc. (NYSE: DKS) between September 8, 2025 and August 24, 2026, both dates inclusive (the "Class Period"), of the important November 3, 2026 lead plaintiff deadline.

SO WHAT: If you purchased DICK'S Sporting Goods common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the DICK'S Sporting Goods class action, go to https://rosenlegal.com/cases/dicks-sporting-goods/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than November 3, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose that: (1) Dick's cleanup efforts concerning Foot Locker's inventory were not complete, and, in fact, Foot Locker remained saddled with unproductive and stagnant legacy footwear; (2) Foot Locker heavily relied on legacy footwear products that were particularly vulnerable to intensifying promotional pressures across the athletic footwear industry; (3) in turn, Dick's was significantly exposed to an industry-wide environment of excess inventory and resulting promotional activity; (4) accordingly, Dick's was unable to achieve the sales growth, margins, and profits it touted to investors; and (5) as a result of the above, defendants' positive statements about Dick's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the DICK'S Sporting Goods class action, go to https://rosenlegal.com/cases/dicks-sporting-goods/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

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

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321686

Source: The Rosen Law Firm PA

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MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Coursera, Inc. (NYSE: COUR), a leading global online learning platform, today announced financial results for its third quarter ended September 30, 2026. A shareholder letter with additional discussion of the Company’s performance and outlook has been posted to the Investor Relations website at investor.coursera.com.

“Organizations are investing at extraordinary scale in AI infrastructure, but the return on that investment depends on the people who know how to use it,” said Greg Hart, Coursera CEO. “Closing that skills gap is the opportunity we are positioning Coursera and Udemy to address, and we are on track to deliver our original 24-month synergy plan in just eight months as we create greater capacity to invest in innovation. Project Helix brings together the complementary strengths of Coursera and Udemy on an AI-native platform designed to deliver more personalized learning, verified skills pathways, and stronger connections between human capabilities and business outcomes.”

Key Financial Results

($ millions, except per share data, unaudited)

Three Months Ended September 30,

2026

2025

YoY Change

GAAP Financial Measures

Revenue

$

376.7

$

194.2

94 %

Gross profit

$

220.1

$

106.0

108 %

Gross profit margin

58.4

%

54.6

%

380 bps

Net loss

$

(25.6

)

$

(8.6

)

(198) %

Net loss per share

$

(0.10

)

$

(0.05

)

(100) %

Net loss margin

(6.8

)%

(4.4

)%

(240) bps

Net cash provided by operating activities(1)

$

15.5

$

33.9

(54) %

Non-GAAP Financial Measures

Gross profit

$

240.0

$

108.0

122 %

Gross profit margin

63.7

%

55.6

%

810 bps

Net income

$

57.1

$

16.7

242 %

Net income per share

$

0.21

$

0.10

110 %

Adjusted EBITDA

$

61.5

$

15.6

294 %

Adjusted EBITDA Margin

16.3

%

8.0

%

830 bps

Free Cash Flow(1)

$

4.6

$

26.6

(83) %

For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Segment Results

($ millions, unaudited)

Three Months Ended September 30,

2026

2025

YoY Change

Enterprise revenue

$

200.9

$

63.9

214 %

Enterprise gross profit

$

163.4

$

44.5

267 %

Enterprise gross profit margin

81.3

%

69.6

%

1170 bps

Consumer revenue

$

175.8

$

130.3

35 %

Consumer gross profit

$

115.5

$

79.7

45 %

Consumer gross profit margin

65.7

%

61.2

%

450 bps

Key Business Metrics(1)

Three Months Ended September 30,

2026

2025

YoY Change

Net Retention Rate for Enterprise Customers(2)

93

%

93

%

0 bps

September 30,

2026

2025

YoY Change

Enterprise Customers(3)

11,897

12,338

(4) %

Paid Subscribers (in thousands)

1,687

1,299

30 %

(1) Key Business Metrics presented above represent the combined metrics of Coursera and Udemy, reflecting a unified reporting methodology. Historical combined metrics have been conformed to this unified reporting methodology for comparability purposes, and, therefore, may not equal the sum of each company’s previously reported metrics or be comparable to the financial information presented in this press release, which reflects the completion of the Udemy transaction on May 11, 2026 and incorporates Udemy’s operating results from the date of acquisition. For more information regarding the metrics discussed in this press release, please see “Key Business Metrics Definitions” below.

(2) On a standalone basis for the three months ended September 30, 2025, Coursera reported Net Retention Rate of 89% and Udemy reported Net Dollar Retention Rate of 93%. These legacy as-reported figures were calculated using each respective company’s pre-merger defined reporting methodology and are provided solely for historical reference.

(3) On a standalone basis, Coursera reported 1,724 Paid Enterprise Customers and Udemy reported 17,111 Udemy Business Customers as of September 30, 2025. These legacy as-reported figures were calculated using each respective company’s pre-merger defined reporting methodology and are provided solely for historical reference.

Financial Outlook

Our guidance reflects the completion of the Udemy transaction on May 11, 2026 and incorporates Udemy's operating results from the date of acquisition. Guidance also reflects the expected pace of synergy realization during 2026, and therefore only a portion of the annual run-rate benefit is expected to be reflected in reported 2026 results.

Fourth quarter 2026: Revenue in the range of $358 million to $366 million Adjusted EBITDA in the range of $55 million to $59 million Full year 2026: Revenue in the range of $1.229 billion to $1.237 billion Adjusted EBITDA Margin target of approximately 14% Actual results may differ materially from Coursera’s Financial Outlook as a result of, among other things, the factors described under “Special Note on Forward-Looking Statements” below.

A reconciliation of our non-GAAP guidance measure (Adjusted EBITDA and Adjusted EBITDA Margin) to the corresponding GAAP guidance measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release.

Share repurchase

During the third quarter of 2026, Coursera repurchased approximately 18.1 million shares of its common stock for $102 million, including commissions. During the nine months ended September 30, 2026, Coursera repurchased approximately 34.6 million shares of its common stock for $192 million, including commissions. Including purchases after quarter-end, as of October 28, 2026, the Company had repurchased more than $215 million of its common stock since the program was announced in May 2026, with significant remaining capacity under its $500 million authorization.

Conference Call Details

As previously announced, Coursera will hold a conference call to discuss its third quarter 2026 performance today, October 29, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

A live audio webcast of the conference call and accompanying earnings materials will be available to the public on our investor relations page at investor.coursera.com. For those unable to listen to the broadcast live, an archived replay will be accessible in the same location for one year.

Disclosure Information

In compliance with disclosure obligations under Regulation FD, Coursera announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission (“SEC”), press releases, company blog posts, public conference calls, and webcasts, as well as via Coursera’s investor relations website.

About Coursera

Coursera was launched in 2012 by Andrew Ng and Daphne Koller with a mission to provide universal access to world-class learning. Coursera partners with leading university and industry partners to offer a broad catalog of content and credentials, including courses, Specializations, Professional Certificates, and degrees. Coursera’s platform innovations — including AI-powered personalized guide and features, like Role Play and Course Builder, and role-based solutions like Skills Tracks — enable instructors, partners, and companies to deliver scalable, personalized, and verified learning. Institutions worldwide rely on Coursera to upskill and reskill their employees, students, and citizens in high-demand fields such as GenAI, data science, technology, and business, while learners globally turn to Coursera to master the skills they need to advance their careers. Coursera is a Delaware public benefit corporation and a B Corp. Coursera recently combined with Udemy to create one of the world’s most comprehensive skills development platforms.

Key Business Metrics Definitions

Enterprise Customers

We count the total number of Enterprise Customers that are active on the Coursera or Udemy platforms at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. We define an “Enterprise Customer” as a customer who purchases Coursera or Udemy solutions via our direct sales force or through reseller and channel partnerships. For purposes of determining our Enterprise Customer count, we exclude customers who do not purchase either via our direct sales force or through reseller and channel partnerships, including organizations engaging through our self service platforms.

Net Retention Rate (“NRR”) for Enterprise Customers

We calculate annual recurring revenue (“ARR”) by annualizing each customer’s monthly recurring revenue (“MRR”) for the most recent month at period end. We calculate “Net Retention Rate” for a period by starting with the ARR from all Enterprise Customers as of the 12 months prior to such period end, or Prior Period ARR. We then calculate the ARR from these same Enterprise Customers as of the current period end, or “Current Period ARR”. Current Period ARR includes expansion within Enterprise Customers and is net of contraction or attrition over the trailing 12 months but excludes the contribution from new Enterprise Customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at our Net Retention Rate for Enterprise Customers.

Paid Subscribers

Paid Subscriber count is defined as the total number of unique subscribers with at least one paid Consumer subscription product that contributes to revenue as of the reporting period. For purposes of determining unique subscriber count, subscribers with multiple paid subscriptions are counted as a single Paid Subscriber.

Non-GAAP Financial Measures

In addition to financial information presented in accordance with GAAP, this press release includes non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP net income, non-GAAP net income per share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, each of which is a non-GAAP financial measure. These are key measures used by our management to help us analyze our financial results, establish budgets and operational goals for managing our business, evaluate our performance, and make strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, we believe these measures are useful for period-to-period comparisons of our business. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance. However, the non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. These non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered as a substitute for or in isolation from financial information presented in accordance with GAAP. These non-GAAP financial measures have limitations as analytical tools.

Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin, Non-GAAP Net Income, and Non-GAAP Net Income Per Share

We define non-GAAP gross profit and non-GAAP net income as GAAP gross profit and GAAP net loss excluding: (1) merger, integration, and restructuring related costs; (2) stock-based compensation expense; (3) amortization of acquired intangible assets; (4) amortization of stock-based compensation expense capitalized as internal-use software costs; (5) payroll tax expense related to stock-based compensation; and (6) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries. Non-GAAP gross profit margin reflects non-GAAP gross profit as a percentage of revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the diluted weighted average shares of common stock outstanding.

Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA as our GAAP net loss excluding: (1) merger, integration, and restructuring related costs; (2) stock-based compensation expense; (3) depreciation and amortization; (4) income tax expense; (5) other expense, net; (6) payroll tax expense related to stock-based compensation; (7) costs and settlement (gains) losses related to significant and non-recurring legal and regulatory matters, net of insurance recoveries; and (8) interest income, net. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

Free Cash Flow

We define Free Cash Flow as net cash provided by operating activities, less capitalized internal-use software costs, purchases of content assets, and purchases of property, equipment, and software as we consider these capital expenditures necessary to support our ongoing operations.

We believe the presentation of these adjusted operating results provides useful supplemental information to investors and facilitates the analysis and comparison of our operating results across reporting periods.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial statements below.

Special Note on Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. Any statements contained in this press release that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: “accelerate,” “achieve,” “anticipate,” “believe,” “can,” “continue,” “could,” “demand,” “design,” “estimate,” “expand,” “expect,” “intend,” “may,” “might,” “mission,” “need,” “objective,” “ongoing,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These forward-looking statements include, but are not limited to, statements regarding the development, timing of launch and market adoption of Project Helix; our strategic investment, including the expected benefits or timing of our commercial collaborations; the expected benefits of the completed business combination with Udemy, such as the amount and expected timing of our annual run-rate net synergies and the expected pace of synergy realization during 2026, the outlook for the combined company’s results of operations and financial condition; our continued integration efforts for the combined company; the anticipated utility of our non-GAAP financial measures; our financial outlook, future financial and operational performance, and expectations, including our financial outlook for the fourth quarter of 2026 and full year 2026; and the timing, amount, and continuation of share repurchases under our share repurchase authorization, including our expectations regarding future cash generation and capital allocation priorities, among others. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our ability to attract, engage, and retain learners; our ability to increase sales of our offerings; risks associated with our ability to develop, market and sell a more comprehensive and AI-native skills platform in a timely manner or at all, and risks related to its market adoption; risks related to market acceptance and demand for our offerings; our ability to maintain and expand our existing content creator relationships and to develop new partnerships with universities, industry leaders, and subject matter experts; our dependence on the supply of content created by our partners; risks related to our AI innovations and AI generally, including the rapid pace of technological change and the substantial and ongoing investment that may be required to successfully compete; risks related to the completed business combination with Udemy, including our ability to retain and hire key personnel and maintain relationships with customers, vendors and others with whom Coursera or Udemy do business, our ability to successfully integrate Coursera’s and Udemy’s operations and business on a timely basis or otherwise in accordance with the standards and obligations applicable to the combined company as a public benefit corporation and as a B Corp.; our ability to realize the anticipated benefits and synergies of the completed business combination with Udemy, including the expected amount and timing of net synergies, and the risk that integration may be more difficult, time-consuming, or costly than expected; the risk of impairment of goodwill and other intangible assets acquired in the business combination; fluctuations in the prices of Coursera stock; our ability to compete effectively against new and existing competitors, particularly as emerging and evolving technologies such as AI may lower barriers to entry, enable new products and business models, and alter industry dynamics; adverse impacts on our business and financial condition due to macroeconomic or market conditions; our ability to manage our growth; regulatory and/or policy matters or changes impacting us or our content creators; risks related to intellectual property; cybersecurity and privacy risks and regulations; potential disruptions to our platforms; risks related to operations, regulatory, economic, and geopolitical conditions; current and future legal and regulatory matters; the impact of actions to improve operational efficiencies and operating costs; our history of net losses and ability to achieve or sustain profitability; fluctuations in market conditions, our cash needs, and other factors affecting our ability to repurchase shares under our share repurchase authorization; our limited operating history; the relative nascency of online learning solutions and generative AI; natural disasters, public health crises, or other catastrophic events; as well as the risks and uncertainties discussed in our most recently filed annual and quarterly reports on Forms 10-K and 10-Q and subsequent filings and as detailed from time to time in our SEC filings. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Such forward-looking statements relate only to events as of the date of this press release. We undertake no obligation to update any forward-looking statements except to the extent required by law.

Coursera Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except per share amounts)

  Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenue

$

376.7

$

194.2

$

871.0

$

560.6

Cost of revenue(2)

156.6

88.2

368.9

254.0

Gross profit

220.1

106.0

502.1

306.6

Operating expenses:

Research and development(2)

52.1

30.0

127.1

88.8

Sales and marketing(2)

129.5

67.4

302.8

187.8

General and administrative(1)(2)

36.6

24.2

90.5

76.0

Merger, integration, and restructuring related costs(1)(2)

30.8

—

120.6

(0.9

)

Total operating expenses

249.0

121.6

641.0

351.7

Loss from operations

(28.9

)

(15.6

)

(138.9

)

(45.1

)

Interest income, net

6.8

8.3

21.6

24.1

Other expense, net

(0.9

)

(0.5

)

(3.1

)

(0.1

)

Loss before income taxes

(23.0

)

(7.8

)

(120.4

)

(21.1

)

Income tax expense

2.6

0.8

6.1

3.1

Net loss

$

(25.6

)

$

(8.6

)

$

(126.5

)

$

(24.2

)

Net loss per share—basic and diluted

$

(0.10

)

$

(0.05

)

$

(0.57

)

$

(0.15

)

Weighted average shares used in computing net loss per share—basic and diluted

264.7

164.6

222.6

162.6

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Cost of revenue

$

1.1

$

0.6

$

2.7

$

1.9

Research and development

8.7

8.5

25.5

26.0

Sales and marketing

6.5

5.3

18.1

15.7

General and administrative

6.5

8.6

20.6

29.0

Merger, integration, and restructuring related costs

0.3

—

16.1

(1.6

)

Total stock-based compensation expense

$

23.1

$

23.0

$

83.0

$

71.0

Coursera Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions)

  September 30, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$

670.6

$

792.6

Marketable securities

104.9

—

Accounts receivable, net

140.0

65.4

Deferred costs, net

32.2

19.6

Prepaid expenses and other current assets

52.9

20.5

Total current assets

1,000.6

898.1

Property, equipment, and software, net

57.1

43.4

Intangible assets, net

410.3

27.1

Goodwill

182.7

—

Strategic investments(3)

110.0

1.7

Other assets

44.7

29.7

Total assets

$

1,805.4

$

1,000.0

Liabilities and Stockholders’ Equity

Current liabilities:

Content liabilities

$

120.7

$

100.0

Other accounts payable and accrued expenses

63.1

29.8

Accrued compensation and benefits

56.9

36.7

Deferred revenue, current

458.5

180.9

Other current liabilities

29.2

10.5

Total current liabilities

728.4

357.9

Deferred revenue, non-current

3.2

1.4

Other liabilities

16.5

5.0

Total liabilities

748.1

364.3

Stockholders’ equity:

Additional paid-in capital

2,095.0

1,546.9

Accumulated other comprehensive income

—

—

Accumulated deficit

(1,037.7

)

(911.2

)

Total stockholders’ equity

1,057.3

635.7

Total liabilities and stockholders’ equity

$

1,805.4

$

1,000.0

Coursera Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

  Nine Months Ended September 30,

2026

2025

Cash flows from operating activities:

Net loss

$

(126.5

)

$

(24.2

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

64.6

21.8

Stock-based compensation expense

83.0

71.0

Impairment losses

3.0

3.1

Other

1.5

(0.3

)

Changes in operating assets and liabilities:

Accounts receivable, net

22.0

1.0

Prepaid expenses and other assets

(16.0

)

6.2

Accounts payable and accrued expenses

9.7

9.1

Accrued compensation and other liabilities

4.1

(2.6

)

Deferred revenue

(35.1

)

17.8

Net cash provided by operating activities

10.3

102.9

Cash flows from investing activities:

Cash acquired from the Udemy merger

213.6

—

Purchases of strategic investments

(100.0

)

—

Purchases of marketable securities

(65.4

)

—

Proceeds from maturities of marketable securities

70.0

—

Purchases of content assets

(13.7

)

(8.0

)

Capitalized internal-use software costs

(20.8

)

(13.3

)

Purchases of property, equipment, and software

(0.8

)

(1.1

)

Net cash provided by (used in) investing activities

82.9

(22.4

)

Cash flows from financing activities:

Proceeds from exercise of stock options

0.7

8.6

Proceeds from employee stock purchase plan

2.7

2.8

Payments for repurchases of common stock

(190.7

)

—

Payments for tax withholding on vesting of restricted stock units

(25.8

)

(21.8

)

Net cash used in financing activities

(213.1

)

(10.4

)

Effect of foreign exchange rates on cash flows

(0.4

)

—

Net (decrease) increase in cash, cash equivalents, and restricted cash

(120.3

)

70.1

Cash, cash equivalents, and restricted cash—beginning of period

793.4

728.4

Cash, cash equivalents, and restricted cash—end of period

$

673.1

$

798.5

Coursera Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

(In millions, except percentages and per share amounts)

  Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Gross profit

$

220.1

$

106.0

$

502.1

$

306.6

Amortization of acquired intangible assets

17.0

—

26.5

—

Stock-based compensation expense

1.1

0.6

2.7

1.9

Amortization of stock-based compensation capitalized as internal-use software costs

1.8

1.4

5.2

4.3

Payroll tax expense related to stock-based compensation

—

—

0.1

—

Non-GAAP gross profit

$

240.0

$

108.0

$

536.6

$

312.8

Gross profit margin

58.4

%

54.6

%

57.6

%

54.7

%

Non-GAAP gross profit margin

63.7

%

55.6

%

61.6

%

55.8

%

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net loss

$

(25.6

)

$

(8.6

)

$

(126.5

)

$

(24.2

)

Merger, integration, and restructuring related costs

30.8

—

120.6

(0.9

)

Stock-based compensation expense

22.8

23.0

66.9

72.6

Amortization of acquired intangible assets

25.1

—

39.2

—

Amortization of stock-based compensation capitalized as internal-use software costs

1.8

1.4

5.2

4.3

Payroll tax expense related to stock-based compensation

0.7

0.8

2.1

2.4

Significant and non-recurring legal and regulatory matters

1.5

0.1

2.4

1.5

Non-GAAP net income

$

57.1

$

16.7

$

109.9

$

55.7

Weighted-average shares used in computing net loss per share—basic

264.7

164.6

222.6

162.6

Effect of dilutive securities

2.8

7.9

5.2

6.1

Weighted-average shares used in computing non-GAAP net income per share—diluted

267.5

172.5

227.8

168.7

Net loss per share—basic and diluted

$

(0.10

)

$

(0.05

)

$

(0.57

)

$

(0.15

)

Non-GAAP net income per share—diluted

$

0.21

$

0.10

$

0.48

$

0.33

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net loss

$

(25.6

)

$

(8.6

)

$

(126.5

)

$

(24.2

)

Merger, integration, and restructuring related costs

30.8

—

120.6

(0.9

)

Stock-based compensation expense

22.8

23.0

66.9

72.6

Depreciation and amortization

34.6

7.3

64.6

21.8

Income tax expense

2.6

0.8

6.1

3.1

Other expense, net

0.9

0.5

3.1

0.1

Payroll tax expense related to stock-based compensation

0.7

0.8

2.1

2.4

Significant and non-recurring legal and regulatory matters

1.5

0.1

2.4

1.5

Interest income, net

(6.8

)

(8.3

)

(21.6

)

(24.1

)

Adjusted EBITDA

$

61.5

$

15.6

$

117.7

$

52.3

Net loss margin

(6.8

)%

(4.4

)%

(14.5

)%

(4.3

)%

Adjusted EBITDA Margin

16.3

%

8.0

%

13.5

%

9.3

%

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net cash provided by operating activities(4)

$

15.5

$

33.9

$

10.3

$

102.9

Less: capitalized internal-use software costs

(7.8

)

(5.0

)

(20.8

)

(13.3

)

Less: purchases of content assets

(2.8

)

(2.1

)

(13.7

)

(8.0

)

Less: purchases of property, equipment, and software

(0.3

)

(0.2

)

(0.8

)

(1.1

)

Free Cash Flow

$

4.6

$

26.6

$

(25.0

)

$

80.5

Supplemental Data

Disaggregation of Revenue - The following table presents revenue disaggregated by product offering for each segment (in millions):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Enterprise:

Subscription

199.8

63.6

405.2

189.2

Other

1.1

0.3

1.9

0.7

Enterprise revenue

$

200.9

$

63.9

$

407.1

$

189.9

Consumer:

Subscription

130.6

111.2

362.7

311.2

Transactional and other

32.8

4.8

60.4

14.0

Degrees

12.4

14.3

40.8

45.5

Consumer revenue

$

175.8

$

130.3

$

463.9

$

370.7

Total revenue

$

376.7

$

194.2

$

871.0

$

560.6

Source Code: COUR-IR

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Image source: XPO.

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XPO's top-line growth contributed to its margin expansion, but cost efficiencies also helped. The company is leveraging AI in areas like labor and route optimization, and making pickups and deliveries more efficient. It also grew shipments in the quarter by 6% even though headcount was only up 1%, showing it's more efficiently using its personnel.

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