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3 Dividend Leaders Set for Strong Growth in 2025Packaging Corporation of America NYSE: PKG reported lower adjusted earnings for the second quarter of 2026 compared with the prior year, even as sales and EBITDA increased, with management citing strong corrugated demand, higher freight costs and contributions from the recently acquired Greif containerboard business.

Chairman and Chief Executive Officer Mark Kowlzan said the company reported second-quarter net income of $192 million, or $2.15 per share. Excluding special items, net income was $210 million, or $2.35 per share, compared with $224 million, or $2.48 per share, in the second quarter of 2025. Net sales rose to $2.5 billion from $2.2 billion a year earlier, while total company EBITDA excluding special items increased to $486 million from $451 million.

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Packaging Corporation of America: Buy The DipKowlzan said special items totaled $0.20 per share and were primarily related to facility closure costs and write-offs, Wallula Mill restructuring charges, and expenses tied to the acquisition and integration of the Greif containerboard business.

Excluding special items, earnings declined by $0.13 per share from the year-ago quarter. Kowlzan said legacy business earnings were down $0.27 per share, partly offset by $0.14 per share of earnings from the acquired Greif business. The legacy decline was driven by several cost pressures, including higher freight, corporate and other expenses, lower price and mix in packaging, higher labor and operating costs, and higher fiber costs. Those headwinds were partly offset by higher production and sales volumes in packaging and paper, lower maintenance outage expense, and improved paper pricing and mix.

Packaging Corporation of America: A Total Package to Buy and Hold“We exceeded our guidance of $2.33 on the strength of our corrugated volumes, which helped drive cost favorability in areas that we could control and offset higher than forecast costs for freight, recycled fiber, and employee benefits,” Kowlzan said. He added that Greif’s earnings contribution also exceeded expectations.

Packaging Demand Remains Strong In the packaging segment, EBITDA excluding special items was $489 million on sales of $2.3 billion, resulting in a margin of 21.1%. That compared with EBITDA of $453 million on sales of $2 billion, or a 22.6% margin, in the second quarter of 2025.

The company produced 1.415 million tons of containerboard during the quarter. Legacy mills produced 1.209 million tons, roughly even with the first quarter and 14,000 tons above the prior-year period. Acquired mills produced 206,000 tons, which Kowlzan said significantly exceeded their production in any quarter since the acquisition.

President Thomas Hassfurther said corrugated operations “turned in yet another very strong quarter.” Shipments were up more than 24% in total and per day versus last year, with the legacy business up 4.1% and achieving an all-time record for total quarterly shipments. Hassfurther said demand was very strong across the company’s customer base, with particular strength in e-commerce related to Amazon Prime Day and related customers.

Hassfurther said domestic containerboard and corrugated products prices and mix were $0.11 per share below the second quarter of 2025 but $0.04 per share above the first quarter of 2026. He said the company began realizing the first announced price increase in June, expects most of that increase to roll in during July, and expects the second increase to begin in August with realization split between the third and fourth quarters.

The company reduced export containerboard sales during the quarter to build inventory for its corrugated plants. Export volume was 30,000 tons below the first quarter and 22,000 tons below the second quarter of 2025. Hassfurther said the company was able to meaningfully increase inventories in early July and described the current market environment in one word during the question-and-answer session: “tight.”

Greif Integration Exceeds Expectations Management said the acquired Greif business contributed $0.14 per share to earnings in the quarter, above expectations. Chief Financial Officer Kent Pflederer said $0.04 of that contribution came from a depreciation benefit tied to measurement-period adjustments to the valuation of fixed assets on the opening balance sheet. Excluding that benefit, Pflederer said the outperformance was driven largely by higher volumes and strong operational performance.

Hassfurther said PCA now views the acquired business as fully integrated and is operating it as one unit with the legacy business. Pflederer said the transition services agreement with Greif will run through the end of the year as the company brings remaining corrugated plants and one mill-related system onto PCA systems. He said three more plants are expected to transition in the third quarter and the final facilities in the fourth quarter.

Pflederer said PCA is on track, and possibly ahead, on Greif-related synergies. He cited mill production improvements and better reliability, as well as integration benefits that are beginning to show in the numbers. He said the company is “probably” on track to exceed a $30 million run rate by year-end.

Paper Segment Posts Higher Margins The paper segment reported EBITDA excluding special items of $39 million on sales of $157 million, for a 24.9% margin. That compared with EBITDA of $30 million on sales of $146 million, or a 20.8% margin, in the second quarter of 2025.

Kowlzan said paper sales volume was about 3% below the first quarter but about 6% above the second quarter of 2025. Prices and mix were up 2% from both the first quarter of 2026 and the prior-year quarter. He said the company continues to implement previously announced paper price increases and expects to benefit in the third quarter.

Costs, Outages and Capital Spending in Focus Pflederer said cash provided by operations was $376 million, and free cash flow was $170 million after $206 million of capital expenditures. Other cash uses included dividend payments of $111 million, cash tax payments of $78 million and net interest payments of $54 million. PCA did not repurchase shares during the quarter.

The company continues to forecast 2026 capital expenditures of $840 million to $870 million and depreciation, depletion and amortization of about $710 million, excluding special items. Pflederer said outage expense was $0.34 per share in the second quarter and is now estimated at $0.30 in the third quarter and $0.63 in the fourth quarter, for a full-year total of $1.41 per share.

Kowlzan said operational performance in the quarter was mixed because of production interruptions from utility power outages across the mill system. In response to a question, Pflederer said the outages likely affected production by about 10,000 tons. Kowlzan said the disruptions reinforced the need for gas turbine projects at three key facilities, which he said should reduce or eliminate reliance on the grid at those mills.

Kowlzan said a gas turbine project at the Jackson Mill is in construction and is targeted to come online next year in coordination with Jackson’s annual outage. Projects at Riverville, Virginia, and DeRidder, Louisiana, are moving through environmental permitting, with Kowlzan indicating those units could come online in the first to middle part of 2028.

Third-Quarter Guidance Calls for Higher Earnings Looking ahead, Kowlzan said PCA expects continued strong packaging demand, increased corrugated products volume due to one additional shipping day, and higher containerboard and corrugated prices as price increases are implemented. He also said the company expects one more day of mill operation, lower production impact from packaging maintenance outages and better operating performance across its containerboard mill system.

In paper, PCA expects lower volume and higher prices due to maintenance at International Falls and continued price increase implementation. Freight costs are expected to remain around the elevated levels seen in May and June, while recycled fiber prices are continuing to rise. The company also expects higher chemical and purchased electricity prices, with wood fiber and natural gas relatively flat.

PCA guided for third-quarter earnings of $2.91 per share, excluding special items.

About Packaging Corporation of America (NYSE:PKG)Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.

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].

Should You Invest $1,000 in Packaging Corporation of America Right Now?Before you consider Packaging Corporation of America, you'll want to hear this.

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Tenet Healthcare (THC - Free Report) reported $5.63 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.8%. EPS of $6.12 for the same period compares to $4.02 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $5.39 billion, representing a surprise of +4.4%. The company delivered an EPS surprise of +50%, with the consensus EPS estimate being $4.08.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Tenet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net patient service revenue per adjusted patient admission: $16,807.00 versus $17,985.64 estimated by two analysts on average.Net patient service revenue per adjusted patient admission - Same Hospital: $16,813.00 compared to the $16,562.51 average estimate based on two analysts.Adjusted patient admissions - Same-hospital: 216.97 thousand versus the two-analyst average estimate of 210.93 thousand.Adjusted admissions: 218.25 thousand versus 206.83 thousand estimated by two analysts on average.Net Operating revenues: $5.63 billion versus the four-analyst average estimate of $5.38 billion. The reported number represents a year-over-year change of +6.8%.Net Operating revenues- Ambulatory Care: $1.39 billion compared to the $1.38 billion average estimate based on four analysts. The reported number represents a change of +9.3% year over year.Net Operating revenues- Hospital Operations and Services: $4.24 billion versus $4 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Adjusted EBITDA- Hospital Operations and Services: $762 million versus the three-analyst average estimate of $605.47 million.Equity in earnings of unconsolidated affiliates- Ambulatory Care: $64 million versus the three-analyst average estimate of $63.75 million.Adjusted EBITDA- Ambulatory Care: $542 million versus the three-analyst average estimate of $523.47 million.View all Key Company Metrics for Tenet here>>>

Shares of Tenet have returned +6.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

In the latest trading session, Trane Technologies (TT - Free Report) closed at $479.71, marking a +1.29% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 1.21% for the day. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.

The manufacturer's stock has dropped by 1.98% in the past month, falling short of the Business Services sector's gain of 3.63% and the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of Trane Technologies in its upcoming release. The company plans to announce its earnings on July 30, 2026. The company is forecasted to report an EPS of $4.27, showcasing a 10.05% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.18 billion, up 7.49% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.89 per share and revenue of $23.24 billion, indicating changes of +14.01% and +8.98%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Trane Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Right now, Trane Technologies possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Trane Technologies currently has a Forward P/E ratio of 31.81. Its industry sports an average Forward P/E of 16.57, so one might conclude that Trane Technologies is trading at a premium comparatively.

Meanwhile, TT's PEG ratio is currently 2.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.44 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

AtriCure (ATRC - Free Report) reported $153.6 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.8%. EPS of $0.18 for the same period compares to -$0.02 a year ago.

The reported revenue represents a surprise of +1.39% over the Zacks Consensus Estimate of $151.5 million. With the consensus EPS estimate being $0.03, the EPS surprise was +500%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how AtriCure performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

United States Revenue- Pain management: $27.06 million versus the three-analyst average estimate of $24.91 million. The reported number represents a year-over-year change of +27.8%.International Revenue- Pain management: $2.38 million versus $2.56 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.1% change.United States Revenue- Total ablation ( Open ablation+Minimally invasive ablation+Pain management): $73.97 million compared to the $71.95 million average estimate based on three analysts. The reported number represents a change of +13% year over year.International Revenue- Total ablation ( Open ablation+Minimally invasive ablation+Pain management): $15.64 million versus $16.12 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6% change.United States Revenue- Total: $125.59 million versus the three-analyst average estimate of $122.88 million. The reported number represents a year-over-year change of +13.6%.International Revenue- Appendage management: $12.37 million compared to the $12.57 million average estimate based on three analysts. The reported number represents a change of +14.5% year over year.United States Revenue- Open ablation: $40.89 million compared to the $40.9 million average estimate based on three analysts. The reported number represents a change of +12.1% year over year.International Revenue- Open ablation: $11.24 million compared to the $11.39 million average estimate based on three analysts. The reported number represents a change of +8.6% year over year.United States Revenue- Minimally invasive ablation: $6.03 million versus $6.14 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -23.1% change.International Revenue- Minimally invasive ablation: $2.02 million versus $2.17 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -14.8% change.United States Revenue- Appendage management: $51.61 million versus $50.93 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +14.4% change.International Revenue- Total: $28.02 million versus the three-analyst average estimate of $28.7 million. The reported number represents a year-over-year change of +9.6%.View all Key Company Metrics for AtriCure here>>>

Shares of AtriCure have returned +18.5% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBHEdwards Lifesciences NYSE: EW reported stronger-than-expected second-quarter 2026 results, with management pointing to broad growth across transcatheter aortic valve replacement, transcatheter mitral and tricuspid therapies, and surgical products.

Chief Executive Officer Bernard Zovighian said the company delivered second-quarter sales growth of 12.5%, supported by “multiple therapies across TAVR, mitral, tricuspid, and surgical,” as well as contributions from each region. Total sales were $1.74 billion, and adjusted earnings per share were $0.78, according to Chief Financial Officer Doretta Mistras.

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Beyond Biotech—3 Healthcare Stocks for Growth-Minded InvestorsBased on the quarter’s performance, Edwards raised its full-year 2026 sales growth outlook for the total company, TAVR and TMTT while reaffirming its adjusted EPS guidance. The company now expects total company sales growth of 10% to 11%, up from 9% to 11%. It expects total company sales of $6.6 billion to $6.9 billion at current exchange rates. Adjusted EPS guidance remains $2.95 to $3.05.

TAVR Sales Beat Expectations Edwards reported global TAVR sales of $1.3 billion in the second quarter, up 10.5% from the prior year. Zovighian said the performance was stronger than expected and benefited from sustained clinical momentum, data supporting more proactive management of severe aortic stenosis, and continued adoption of the company’s SAPIEN platform.

3 Healthcare Pathbreakers With Long-Term TailwindsHe said TAVR growth rates were similar in the U.S. and outside the U.S. Average selling prices were stable globally. Growth also benefited from the exit of a competitor in the second quarter of 2025 and long-term durability data for SAPIEN, according to management.

Edwards raised its full-year TAVR sales growth guidance to 8% to 9%, from 7% to 9%. The company now expects TAVR sales of $4.75 billion to $5 billion at current exchange rates.

Zovighian said recent clinical presentations at the New York Valves Conference included a seven-year subanalysis supporting SAPIEN valve performance and durability, as well as a five-year analysis from the EARLY TAVR trial that added to evidence for treating aortic stenosis earlier in the disease pathway. He also said the first patients have been treated with the updated SAPIEN X4-S platform.

TMTT Growth Driven by Multiple Products Edwards’ transcatheter mitral and tricuspid therapies generated second-quarter sales of $195.9 million, up 44.8% year over year. Zovighian said PASCAL, EVOQUE and SAPIEN M3 all exceeded expectations in the quarter.

The company raised its full-year TMTT sales guidance to $760 million to $780 million, from $740 million to $780 million. Zovighian said the portfolio supports Edwards’ target of reaching $2 billion in TMTT revenue in 2030.

Management said PASCAL adoption continues to increase, citing physician interest in its design and clinical outcomes. Edwards expects next-generation PASCAL technology with Capture Clarity for mitral and tricuspid patients in the U.S. and Europe to be approved in the fourth quarter. The company also expects results from the Class II TR trial to be presented at TCT and plans a U.S. launch of PASCAL for tricuspid patients in the fourth quarter.

EVOQUE continues to scale in the U.S. and Europe, with Edwards expanding into new centers, increasing utilization at existing centers and working to streamline patient screening. Daveen Chopra, corporate vice president with responsibility for TMTT, surgical and IHFM, said EVOQUE is the second-largest TMTT platform by revenue after PASCAL and is “growing very quickly.”

For SAPIEN M3, Zovighian said early experience has validated the need for mitral replacement options for patients not well suited for mitral repair or surgery. Edwards received CE Mark for SAPIEN M3 RESILIA and broadened its indication for SAPIEN M3 and SAPIEN M3 RESILIA to include patients with mitral annular calcification.

Surgical Sales Rise 5% In surgical products, second-quarter global sales were $284 million, up 5% from the prior year. Zovighian said growth was driven by continued adoption of RESILIA-based therapies, including INSPIRIS, MITRIS and KONECT.

He also highlighted 10-year data from the COMMENCE trial presented at the AATS conference, saying the results showed favorable freedom from structural valve deterioration and a low rate of reoperation related to structural valve deterioration. Edwards also received U.S. approval for ECLIPTIS, its surgical left atrial appendage technology, and plans a measured rollout later this year.

The company continues to expect mid-single-digit sales growth in surgical in 2026.

Margins, Tax Rate and Third-Quarter Outlook Mistras said adjusted gross profit margin was 77.6% in the second quarter, flat from a year earlier, as foreign exchange headwinds were offset by lower manufacturing expenses. Foreign exchange reduced gross margin by 70 basis points compared with the prior year. The company now expects gross margin to be at the lower end of its full-year 78% to 79% guidance.

Second-quarter SG&A expense was $561 million, or 32% of sales, compared with $502 million a year earlier. R&D expense was $279 million, or 16% of sales, compared with $276 million, or 18% of sales, in the prior-year period. Edwards continues to expect R&D to be approximately 17% of sales in 2026.

Adjusted operating margin was 30% in the second quarter. Mistras said Edwards continues to expect full-year operating margin at the high end of its original 28% to 29% guidance, representing approximately 150 basis points of constant-currency operating margin expansion.

The company now expects its 2026 effective tax rate, excluding special items, to be at the high end of its prior 16% to 19% range, due to Pillar Two tax impacts and changes to California law limiting the use of R&D credits. GAAP EPS for the quarter was $0.42, primarily affected by the California R&D tax credit impact.

For the third quarter, Edwards projected sales of $1.63 billion to $1.71 billion and adjusted EPS of $0.71 to $0.77. Mistras said underlying growth in the third quarter will be “artificially lower” than first-half performance because the company faces a higher comparison from 2025, when seasonality had an unusually low impact.

Management Discusses NCD, PROGRESS Trial and Long-Term Growth During the question-and-answer session, analysts asked about TAVR growth drivers, the pending U.S. national coverage determination for TAVR, and the PROGRESS trial in moderate aortic stenosis.

Dan Lippis, Edwards’ global leader of TAVR, said the company is encouraged by the draft CMS policy and expects a final policy memo in September. He said potential benefits include a pathway for coverage of asymptomatic indications, recognition of symptomatic severe aortic stenosis as reasonable and necessary for Medicare beneficiaries without coverage with evidence development, and modernization of the policy to support heart teams in providing timely access to care.

On PROGRESS, Zovighian said Edwards separated the baseline characteristics presentation from the full results presentation to give physicians more time to understand the patient population. Lippis said the trial studies moderate aortic stenosis patients with at least one at-risk feature and emphasized that it is “not a heart failure trial.” Results are expected to be presented at TCT later this year.

Zovighian said the company expects minimal impact from PROGRESS in 2026 and reiterated that Edwards’ long-term TAVR outlook remains mid- to high-single-digit growth. He said the company remains confident in its target of approximately 10% average annual total company sales growth over the long term, alongside operating margin expansion.

About Edwards Lifesciences (NYSE:EW)Edwards Lifesciences is a medical technology company focused on products and therapies for structural heart disease and critical care monitoring. The company designs, develops and manufactures prosthetic heart valves and related delivery systems used in both surgical and minimally invasive (transcatheter) procedures. Its portfolio addresses a range of valvular conditions, with an emphasis on technologies that enable transcatheter aortic valve replacement (TAVR) as an alternative to open-heart surgery.

In addition to transcatheter heart valves—including the widely recognized SAPIEN family—Edwards offers surgical tissue valves and ancillary devices used by cardiac surgeons, interventional cardiologists and hospital teams.

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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MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Edwards Lifesciences wasn't on the list.

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3 Swing Trades for Q3 Earnings SeasonOceaneering International NYSE: OII reported second-quarter 2026 results that topped the high end of its adjusted EBITDA guidance range, with management citing strong execution across its portfolio and notable gains in offshore project activity.

President and Chief Executive Officer Rod Larson said the company’s adjusted EBITDA of $115 million was its highest quarterly level since the third quarter of 2015. He said the Offshore Projects Group, or OPG, was the largest contributor to the company’s EBITDA outperformance, driven by a favorable mix of international intervention and installation work, including light well intervention services in the Caspian Sea and an installation project offshore Egypt.

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Senior Vice President and Chief Financial Officer Mike Summerall said consolidated revenue rose 10% year over year to $768 million, with growth in every segment except Integrity Management & Digital Solutions, or IMDS. Operating income increased 11% to $88.2 million, while net income attributable to Oceaneering rose 19% to $65 million, or $0.65 per share. Adjusted EBITDA increased 11% to $115 million.

Offshore Projects and Subsea Robotics Lead Results OPG revenue increased 22% from the prior-year quarter to $183 million, while operating income rose 39% to $30 million. Summerall said the segment generated a 16% operating income margin, supported by disciplined execution on international intervention and installation projects that are expected to continue into the third quarter. Vessel utilization declined year over year, but management expects it to improve in the third quarter as the company supports customers under several frame agreements.

Subsea Robotics, or SSR, also improved year over year, with revenue increasing 6% to $232 million and operating income rising 3% to $66.3 million. Average ROV revenue per day utilized increased to $11,894 from $11,265, reflecting improved contract pricing. ROV utilization was 66%, slightly below 67% in the prior-year quarter, as activity in Europe and West Africa largely offset lower activity in the U.S. Gulf.

Summerall said SSR’s EBITDA margin remained flat at 35%, as higher ROV pricing was offset by geographic and service mix, including a larger contribution from survey work, which carries lower margins than the company’s core ROV business. Larson said the Ocean Intervention II entered service after significant upgrades in 2025 and is now performing survey projects expected to keep the vessel utilized through most of the remainder of 2026. He also said the company expects to conduct a simultaneous operations, or SIMOPS, project from the vessel later this year.

Manufactured Products Improves Margins; ADTech Wins Defense Work Manufactured Products revenue increased 3% to $149 million, while operating income rose 17% to $21.9 million. The segment’s operating income margin improved to 15%, up 178 basis points year over year. Summerall attributed the improvement to conversion of higher-margin backlog, increased volume in the Rotator valves business and improved results in the Mobility Solutions product line.

The segment’s backlog declined to $445 million as of June 30, reflecting execution of previously awarded work. Summerall said the trailing 12-month book-to-bill ratio was 0.88, compared with 0.65 a year earlier. He said the company won multiple awards early in the third quarter and expects additional awards in the third and fourth quarters, supporting management’s expectation that backlog will improve in the second half and meet full-year book-to-bill guidance of 0.9 to 1.0.

In Aerospace and Defense Technologies, or ADTech, revenue increased 22% to $133 million, while operating income was up slightly to $16.4 million. Operating income margin declined to 12%, reflecting program mix and timing in the Oceaneering Technologies, or OTech, business line.

Larson highlighted new contract awards across defense and subsea applications, including subsea robotics, subsea systems, submarine rescue and submarine maintenance, construction and installation services. He pointed to a joint contract from the Defense Innovation Unit to support development of an Extra-Large Unmanned Underwater Vehicle as an example of the company’s strategy to deploy dual-use technologies for both energy and government customers. He also noted that the Space Systems team was recognized by Lockheed Martin as a best-in-class supplier for work on the Artemis program.

Cash Flow, Buybacks and Debt Refinancing Oceaneering generated $55.2 million of cash from operating activities in the quarter. Summerall said the year-over-year decrease reflected the timing of project milestones, customer receipts and vendor payments. The company invested $23.2 million in organic capital expenditures, with 34% allocated to growth and 66% to maintenance, and generated free cash flow of $32 million.

The company resumed share repurchases during the quarter, buying back $10 million of common stock. It ended the period with $629 million in cash, total liquidity of $844 million and no borrowings under its revolving credit facility.

Summerall said Oceaneering placed $500 million of senior notes due in 2034 and used the proceeds, together with cash on hand, to retire $500 million of senior notes due in 2028. The company also amended its secured revolving credit facility, increasing commitments to $345 million from $215 million and extending the maturity to July 2031. He said those transactions would be completed in July.

Asked about capital allocation, Larson said the company’s priorities remain organic investment first, inorganic growth second and returning capital to shareholders, primarily through buybacks. He said Oceaneering intends to invest around its core energy business, particularly SSR, and also sees opportunities to expand in defense, including through partnerships and potential acquisitions.

Guidance Raised at Low End, IMDS Outlook Reduced For the third quarter, Oceaneering expects revenue to increase and adjusted EBITDA to range from $115 million to $125 million. Larson said SSR revenue and operating income are expected to rise as ROV utilization improves and survey activity continues. OPG revenue and operating income are also expected to increase on higher vessel utilization in the U.S. Gulf and West Africa, as well as continuing international projects.

For the full year, management raised the low end of adjusted EBITDA guidance and now expects consolidated adjusted EBITDA of $400 million to $440 million in 2026. Larson said first-half performance increased confidence in the company’s outlook.

However, Oceaneering lowered its outlook for IMDS, citing ongoing uncertainty in the Middle East and reduced activity in West Africa. Management now expects IMDS operating income to decrease significantly compared with full-year 2025, with operating income margin in the low single-digit percentage range. Summerall said second-quarter IMDS revenue, operating income and margin declined due to lower activity, related cost absorption and increased personnel costs in West Africa and the Middle East.

Management Sees Offshore Activity Building During the question-and-answer portion of the call, Larson said offshore activity appears to be rising, though he does not expect a sharply defined inflection point. He cited longer contracts for rigs and ROVs, greater rig utilization and higher levels of contracted rigs as indicators of improving demand.

Larson said SSR should benefit from increased rig utilization and strong tree orders and installations, while OPG should benefit from longer-term confidence in offshore projects. Summerall added that longer-term rig contracts are a positive macro indicator.

Discussing regional opportunities, Larson identified Brazil as a key growth market, pointing to Petrobras activity and the company’s recently announced ROV contract in the country. He also cited Africa, including activity around Namibia and Senegal, as well as Australia and the Far East. Summerall also pointed to Norway and activity tied to Equinor as relevant to European energy security.

On defense spending, Larson said the company is seeing more inbound interest than it did three or four years ago, particularly from partners seeking Oceaneering’s offshore operating experience. Summerall said the company participates in both submarine repair and construction and autonomy-related defense work, including lower-cost uncrewed technologies.

About Oceaneering International (NYSE:OII)Oceaneering International, Inc is a global provider of engineered services and products primarily to the offshore oil and gas industry, as well as to aerospace, defense, and commercial diving markets. The company specializes in remotely operated vehicles (ROVs), subsea intervention, and inspection services designed to support exploration, production and maintenance activities in challenging underwater environments. In addition to ROV operations, Oceaneering offers asset integrity solutions, specialized tooling, and intervention equipment for pipelines, risers, and flowlines.

Founded in 1964 and headquartered in Houston, Texas, Oceaneering has grown through both organic expansion and strategic acquisitions.

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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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Badger Meter To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Badger Meter between April 18, 2024 and April 16, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

New York, New York--(Newsfile Corp. - July 23, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Badger Meter, Inc. ("Badger Meter" or the "Company") (NYSE: BMI) and reminds investors of the August 3, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that Badger Meter's strong financial results reflected "ongoing favorable industry trends," "secular growth drivers," and "solid operating execution." They likewise touted "strong" demand and said they were seeing "robust order pacing and a strong bid pipeline that positions us well for continued sales and earnings growth," and that Badger Meter possessed a "long runway" for growth.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Badger Meter's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Badger Meter class action, go to www.faruqilaw.com/BMI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Frequently Asked Questions (FAQ) for Investors Regarding the Badger Meter Securities Class Action Lawsuit:

What is the Badger Meter securities fraud lawsuit about?

The Badger Meter securities fraud lawsuit is a federal securities class action alleging that Badger Meter, Inc. (NYSE: BMI) and its executives made false and misleading statements to investors by touting "strong" demand, a "robust" order pipeline, and a "long runway" for growth while concealing that the Company's financial results were not sustainable. As the truth emerged through a series of disclosures — including disappointing Q2 2025 results and a sequential sales decline forecast on July 22, 2025, missed revenue expectations and a 6% sequential decline in utility water sales on January 28, 2026, and Q1 2026 earnings that missed consensus estimates by $0.26 per share with revenue missing by $28.58 million on April 17, 2026 — BMI's stock price dropped sharply, causing significant losses for investors.

Who may be eligible to participate in the Badger Meter class action lawsuit?

Investors who purchased or acquired Badger Meter (BMI) stock between April 18, 2024 and April 16, 2026 — the Class Period — and suffered financial losses may be eligible to participate in the Badger Meter securities class action. Participation as a class member does not require taking any affirmative legal action; eligible investors may recover losses simply by remaining members of the class. Whistleblowers, former Badger Meter employees, and others with relevant information about the Company's conduct are also encouraged to come forward.

What is a lead plaintiff, and how can I seek appointment in the Badger Meter lawsuit?

A lead plaintiff in the Badger Meter class action is a court-appointed investor — typically the one with the largest financial interest in the case — who directs and oversees the litigation on behalf of all class members. Any Badger Meter investor who purchased BMI stock during the Class Period may move the Court to serve as lead plaintiff through counsel of their choice. The deadline to seek lead plaintiff appointment is August 3, 2026. Importantly, choosing not to seek the lead plaintiff role does not affect an investor's ability to share in any recovery obtained for the class.

What should investors do if they purchased Badger Meter stock during the Class Period?

Investors who purchased Badger Meter (BMI) stock between April 18, 2024 and April 16, 2026 and suffered losses should contact Faruqi & Faruqi, LLP immediately to discuss their legal rights. The deadline to seek appointment as lead plaintiff in the Badger Meter securities class action is August 3, 2026. To speak directly with securities litigation partner Josh Wilson, call 877-247-4292 or 212-983-9330 (Ext. 1310), or visit www.faruqilaw.com/BMI for more information.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306156

Source: Faruqi & Faruqi LLP

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Chewy (CHWY - Free Report) closed the most recent trading day at $20.46, moving -4.93% from the previous trading session. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.15%.

Shares of the online pet store have appreciated by 13.2% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.27%, and the S&P 500's gain of 0.42%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.32 billion, indicating a 6.83% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.49 billion, demonstrating changes of +20.47% and +7.06%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.78% downward. Chewy currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Chewy is holding a Forward P/E ratio of 14.09. This expresses a discount compared to the average Forward P/E of 16.93 of its industry.

We can additionally observe that CHWY currently boasts a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHWY's industry had an average PEG ratio of 1.11 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.

For the quarter ended June 2026, Deckers (DECK - Free Report) reported revenue of $1.02 billion, up 5.7% over the same period last year. EPS came in at $0.94, compared to $0.93 in the year-ago quarter.

The reported revenue represents a surprise of +0.25% over the Zacks Consensus Estimate of $1.02 billion. With the consensus EPS estimate being $0.88, the EPS surprise was +6.82%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Deckers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales by location- International: $502.1 million versus $512.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.Net Sales by location- Domestic: $517.4 million compared to the $507.95 million average estimate based on three analysts. The reported number represents a change of +3.2% year over year.Net Sales by brand- HOKA brand wholesale- Total: $703.5 million versus $705.84 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.7% change.Net Sales by brand- UGG brand wholesale- Total: $278 million compared to the $278.2 million average estimate based on five analysts. The reported number represents a change of +4.9% year over year.Net Sales by brand- Other brands wholesale- Total: $37.9 million versus the five-analyst average estimate of $36.66 million. The reported number represents a year-over-year change of -18.1%.Net Sales by channel- Total Wholesale: $666.7 million versus $677.09 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change.Net Sales by channel- Direct-to-Consumer: $352.8 million versus the three-analyst average estimate of $327.8 million. The reported number represents a year-over-year change of +13%.View all Key Company Metrics for Deckers here>>>

Shares of Deckers have returned -3.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Key Takeaways Key Oil Price Strikes $100, Market Sells OffIntel Posts Huge Earnings Beat, Revenues 25%FIX and DECK Also Outperform Expectations After the Close Thursday, July 23rd, 2026

Markets got pummeled today, not on Q2 earnings results or Weekly Jobless Claims, which were mostly terrific, but on international spot oil prices — Brent crude — crossed the psychologically important $100 per barrel (/bbl), up +7% today. West Texas Intermediate (WTI) rose over +6% to $92/bbl. A dozen straight days of bombing Iran and now the Yemen-based Houthis attacking Saudi ships have turned our “four to six week war” into a sinking albatross now five months along.

The Dow shed another -506 points today, -0.97%, while the S&P 500 did even worse: -90 points or -1.21%. The tech-heavy Nasdaq was the worst of the worst today — -553 points, -2.15% — while the small-cap Russell 2000 slid by only down -19 points, -0.67%. Part of this pullback in tech stems from the extraordinarily large AI capex spending from companies like Alphabet (GOOGL - Free Report) , which reported negative cash flow for the first time in its publicly traded history.

Intel Shines in Q2, FIX and DECK Also Report Earnings
Chip-making giant and Zacks Rank #1 (Strong Buy) Intel (INTC - Free Report) may have just posted the strongest quarterly numbers in this Q2 earnings season: 42 cents per share doubled the 21 cents in the Zacks consensus, which itself was a +310% earnings growth increase from the -$0.10 per share reported in the year-ago quarter. Revenues in the quarter grew +25% year over year to $16.1 billion, well above the $14.41 billion analysts were estimating — the company’s strongest revenue growth in 15 years.

Guidance for the present quarter also impressed: Intel is looking for $0.31-0.38 per share in Q3, well above the $0.25 expected. Revenues of $15.8-16.8 billion is much stronger than the $15.08 billion consensus estimate. Gross margins are projected to come in at +42%. Intel CEO Lip-Bu Tan called it “unprecedented demand for compute.” Shares of INTC raced higher by +11% after the release, but has since simmered down to +5.5% growth.

Another AI tech firm also reported “unprecedented,” record-setting results in its Q2 report this afternoon. Comfort Systems (FIX - Free Report) — no, not a mattress company; they provide cooling systems to the AI chips — reported earnings of $12.53 per share, nicely ahead of the $10.38 estimate from analysts. Revenues of $3.27 billion surged +50.3% year over year, well above the $2.94 billion in the Zacks consensus. These are all record numbers for the company, as is crossing over $1 billion in cash flow in the quarter. Shares are down a tad in the after-market, but are up +96% year to date.

Shoe brand parent Deckers Outdoors (DECK - Free Report) also outperformed on earnings after today’s closing bell, but much more modestly: earnings of 94 cents per share versus 88 cents expected. Revenues just met estimates of $1.02 billion in the quarter. Full-year earnings guidance was in-range with earlier forecasts. The Hoka running shoe grew +7.7% in the quarter while UGG gained +4.9%. All other brands collectively were down -18.1%. Shares are down -7% on the news, doubling the company’s losses year to date.

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Published in artificial-intelligence earnings interest-rate

Eastern Bankshares, Inc. (EBC - Free Report) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.52%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.4, delivering a surprise of -9.09%.

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

Eastern Bankshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $309.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.70%. This compares to year-ago revenues of $244.9 million. The company has topped consensus revenue estimates two times over the last four quarters.

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

Eastern Bankshares shares have added about 22.5% since the beginning of the year versus the S&P 500's gain of 9.6%.

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

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

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

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $311.85 million in revenues for the coming quarter and $1.87 on $1.22 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Peapack-Gladstone (PGC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27.

This bank holding company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +93.3%. The consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level.

Peapack-Gladstone's revenues are expected to be $85.84 million, up 23.1% from the year-ago quarter.

On July 23, 2026, Dillard's Inc (DDS) shares fell 4.8%, closing at $560.97. The stock has experienced volatility in the past year, with a 52-week range between

For the quarter ended June 2026, Glacier Bancorp (GBCI - Free Report) reported revenue of $317.53 million, up 32% over the same period last year. EPS came in at $0.76, compared to $0.45 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $324.2 million, representing a surprise of -2.06%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.76.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Glacier Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Efficiency Ratio: 56.7% versus 58% estimated by three analysts on average.Net interest margin (tax-equivalent): 3.9% versus the three-analyst average estimate of 3.9%.Non-accrual loans: $74.44 million compared to the $65.72 million average estimate based on two analysts.Total non-performing assets: $91.85 million compared to the $73.31 million average estimate based on two analysts.Average Balances - Total earning assets: $28.79 billion compared to the $28.9 billion average estimate based on two analysts.Total Non-Interest Income: $41.1 million compared to the $39.07 million average estimate based on three analysts.Net interest income (tax-equivalent): $280.02 million compared to the $284.7 million average estimate based on three analysts.Gain on sale of loans: $5.01 million compared to the $5.26 million average estimate based on two analysts.Net Interest Income: $276.43 million versus $279.91 million estimated by two analysts on average.View all Key Company Metrics for Glacier Bancorp here>>>

Shares of Glacier Bancorp have returned +1.7% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

For the quarter ended June 2026, RingCentral (RNG - Free Report) reported revenue of $657.01 million, up 5.9% over the same period last year. EPS came in at $1.22, compared to $1.06 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $650.34 million, representing a surprise of +1.03%. The company delivered an EPS surprise of +4.27%, with the consensus EPS estimate being $1.17.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how RingCentral performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Gross Margin - Non-GAAP Other: -2.2% versus -11.8% estimated by four analysts on average.Gross Margin - Non-GAAP Subscriptions: 80.4% compared to the 80.7% average estimate based on four analysts.Revenues- Subscriptions: $633.65 million versus the five-analyst average estimate of $630.15 million. The reported number represents a year-over-year change of +5.8%.Revenues- Other: $23.36 million versus $20.18 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change.View all Key Company Metrics for RingCentral here>>>

Shares of RingCentral have returned +5.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

On July 23, 2026, Charles River Laboratories International Inc (CRL) shares rose 4.8% to a current price of $229.29. This movement marks a significant increase

SkyWest (SKYW - Free Report) came out with quarterly earnings of $2.54 per share, missing the Zacks Consensus Estimate of $2.7 per share. This compares to earnings of $2.91 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -5.93%. A quarter ago, it was expected that this regional airline would post earnings of $2.15 per share when it actually produced earnings of $2.21, delivering a surprise of +2.79%.

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

SkyWest, which belongs to the Zacks Transportation - Airline industry, posted revenues of $1.1 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $1.04 billion. The company has topped consensus revenue estimates three times over the last four quarters.

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

SkyWest shares have lost about 4.7% since the beginning of the year versus the S&P 500's gain of 9.6%.

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

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

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

Ahead of this earnings release, the estimate revisions trend for SkyWest was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.19 on $1.15 billion in revenues for the coming quarter and $10.88 on $4.37 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Bristow Group (VTOL - Free Report) , has yet to report results for the quarter ended June 2026.

This provider of helicopter transportation services is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of -21.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Bristow Group's revenues are expected to be $408.72 million, up 8.6% from the year-ago quarter.

Nu Holdings Ltd. (NU - Free Report) closed the most recent trading day at $14.19, moving -2.21% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.

The company's shares have seen an increase of 16.45% over the last month, surpassing the Finance sector's gain of 2.12% and the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of Nu Holdings Ltd. in its upcoming release. In that report, analysts expect Nu Holdings Ltd. to post earnings of $0.2 per share. This would mark year-over-year growth of 42.86%. At the same time, our most recent consensus estimate is projecting a revenue of $5.45 billion, reflecting a 48.68% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.83 per share and a revenue of $22.42 billion, indicating changes of +33.87% and +42.13%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nu Holdings Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nu Holdings Ltd. currently has a Zacks Rank of #4 (Sell).

Investors should also note Nu Holdings Ltd.'s current valuation metrics, including its Forward P/E ratio of 17.4. This expresses a premium compared to the average Forward P/E of 12.12 of its industry.

We can additionally observe that NU currently boasts a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Foreign industry currently had an average PEG ratio of 0.88 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

In the latest close session, Viking Therapeutics, Inc. (VKTX - Free Report) was down 5.15% at $35.39. The stock's performance was behind the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Shares of the company have depreciated by 1.48% over the course of the past month, underperforming the Medical sector's gain of 3.97%, and the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of Viking Therapeutics, Inc. in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company's upcoming EPS is projected at -$1.21, signifying a 108.62% drop compared to the same quarter of the previous year.

VKTX's full-year Zacks Consensus Estimates are calling for earnings of -$4.7 per share and revenue of $0 million. These results would represent year-over-year changes of -47.34% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for Viking Therapeutics, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Viking Therapeutics, Inc. boasts a Zacks Rank of #4 (Sell).

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Why Wall Street Is Backing These 3 Comeback StocksSummit Therapeutics NASDAQ: SMMT executives used the company’s latest earnings call to emphasize updated survival data for ivonescimab, outline the timing of key late-stage trial readouts and detail the company’s cash position as it prepares for a potential U.S. regulatory decision later this year.

Chairman and Co-Chief Executive Officer Bob Duggan said Summit remains focused on ivonescimab, its PD-1/VEGF bispecific antibody and lead investigational asset. Duggan said ivonescimab has produced positive data in four Phase III clinical studies to date, leading to two approvals in China, with one additional filing under review there. He said 15 Phase III trials are ongoing or have read out across multiple tumor types, and that Summit and partner Akeso have initiated 52 clinical trials evaluating the drug.

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MarketBeat Week in Review – 11/4 - 11/8Duggan also said more than 4,000 patients have been dosed with ivonescimab in Summit- or Akeso-sponsored clinical trials globally, while more than 70,000 patients have received the drug commercially in China.

Updated HARMONi Data Submitted to FDA President and Co-Chief Executive Officer Dr. Maky Zanganeh highlighted an updated overall survival analysis from the global Phase III HARMONi trial, which evaluated ivonescimab plus chemotherapy versus chemotherapy alone in patients with EGFR-mutated non-small cell lung cancer after TKI therapy.

Summit Therapeutics: Is Their Lung Cancer Drug a Game Changer?Zanganeh said the latest analysis, with a June 2026 data cutoff, showed Western patients had reached a median follow-up of more than 23 months, while Asian patients remained at a median follow-up of 33 months. The company reported an overall survival hazard ratio of 0.76 in both the total population and the Western regional data.

“The hazard ratio for Western patients has improved with more follow-up time,” Zanganeh said, adding that the Western results are now consistent with the magnitude of overall survival benefit seen in Asian patients, who had longer follow-up at the primary analysis.

Summit said no new safety signals were observed in the latest data cut, and that the safety profile remained acceptable and manageable, consistent with previous Phase III results of ivonescimab plus chemotherapy.

Zanganeh said Summit has made the updated results available to the U.S. Food and Drug Administration. The company’s biologics license application for ivonescimab plus chemotherapy in the EGFR-mutated non-small cell lung cancer post-TKI setting remains under FDA review, with a target PDUFA date of Nov. 14. Zanganeh noted that the FDA has previously said a statistically significant overall survival benefit is necessary to support marketing authorization in this setting.

Key Trial Timelines Remain in Focus Summit also provided updates on several global Phase III studies. HARMONi-3 is evaluating ivonescimab plus chemotherapy against pembrolizumab plus chemotherapy in first-line metastatic non-small cell lung cancer in both squamous and non-squamous histologies, which will be analyzed separately.

Zanganeh said enrollment has been completed in both cohorts. Summit expects to reach the number of events needed for a progression-free survival analysis in the squamous cohort in the second half of this year, along with an early interim look at overall survival. The company expects a separate overall survival interim analysis in the first half of 2027. For the non-squamous cohort, Summit expects to reach the number of events for a progression-free survival analysis in the first half of 2027.

In the question-and-answer session, Chief Business and Strategy Officer Dave Gancarz said the HARMONi-3 squamous PFS timing is likely “towards the middle to back end of 2026,” rather than in the near term. He said the first-half 2027 overall survival analysis should have median follow-up generally consistent with the HARMONi-6 analysis and the updated Western patient data from HARMONi.

Summit said HARMONi-7, which compares ivonescimab monotherapy against pembrolizumab monotherapy in first-line non-small cell lung cancer with high PD-L1 expression, continues to enroll. HARMONi-GI3 is evaluating ivonescimab plus chemotherapy versus bevacizumab plus chemotherapy as first-line therapy in unresectable colorectal cancer.

Combination Collaborations Expand Development Plans Zanganeh also reviewed Summit’s collaborations with Revolution Medicines, GSK and Arcus Biosciences. The Revolution Medicines collaboration began enrolling in the first quarter and is evaluating ivonescimab with three novel RAS inhibitors across solid tumor settings including pancreatic, colorectal and non-small cell lung cancers.

Summit expects its GSK collaboration, which will evaluate ivonescimab with GSK’s B7-H3 antibody-drug conjugate in multiple solid tumors, to enroll its first patient later this quarter. The company also announced a collaboration with Arcus to evaluate ivonescimab with Arcus’ HIF-2α inhibitor casdatifan in first-line metastatic clear cell renal cell carcinoma. Summit expects initial data from that collaboration by mid-next year.

The company also pointed to ILLUMINE, a Phase III head and neck cancer study sponsored by European cooperative group GORTEC, which is enrolling in Europe and is expected to begin in China later this year.

Cash Position Rises, Expenses Increase Chief Operating Officer and Chief Financial Officer Manmeet Soni said Summit ended the second quarter of 2026 with $690.7 million in cash, up from $598.7 million at the end of the first quarter. Soni attributed the $92 million increase primarily to $231 million raised through the company’s at-the-market facility, partially offset by approximately $140 million used in operating activities during the quarter.

Soni said Summit filed a prospectus supplement for a new ATM facility of up to $380 million to provide additional financing flexibility. He also said the company currently has no debt on its balance sheet.

Total GAAP operating expenses were $220.5 million in the second quarter, compared with $195.2 million in the first quarter. Non-GAAP operating expenses, which exclude stock-based compensation, were $151.8 million, compared with $122.4 million in the prior quarter. Soni said the increase was primarily driven by higher research and development expenses related to clinical trial costs for HARMONi-GI3, HARMONi-3 and HARMONi-7.

Commercial Preparation Underway In response to an analyst question, Soni said Summit is preparing for a possible U.S. commercial launch ahead of the Nov. 14 PDUFA date. He said the company has hired its commercial leadership team, market access staff and marketing personnel, while field force hiring would typically occur closer to the regulatory date. Gancarz added that the company has also ramped up medical science liaisons.

Duggan closed the call by reiterating management’s confidence in ivonescimab. “We know that ivonescimab works,” he said. “The question I leave you with is, what if ivonescimab works really well?”

About Summit Therapeutics (NASDAQ:SMMT)Summit Therapeutics plc is a clinical‐stage biotechnology company dedicated to the discovery and development of precision medicines for serious and life‐threatening diseases. The company applies a targeted approach to drug design, focusing on novel mechanisms of action that differentiate its candidates from existing therapies.

Summit's lead asset, ridinilazole (formerly SMT19969), is being developed to treat Clostridioides difficile infections and has received both Fast Track and Qualified Infectious Disease Product designations from the U.S.

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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Cava Group (CAVA - Free Report) ended the recent trading session at $63.21, demonstrating a +1.38% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.

Shares of the Mediterranean restaurant chain witnessed a loss of 24.19% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.27%, and the S&P 500's gain of 0.42%.

The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company is slated to reveal its earnings on August 11, 2026. The company is predicted to post an EPS of $0.17, indicating a 6.25% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $353.13 million, indicating a 25.84% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.49 billion, which would represent changes of 0% and +26.17%, respectively, from the prior year.

Any recent changes to analyst estimates for Cava Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% downward. At present, Cava Group boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 114.82. This expresses a premium compared to the average Forward P/E of 20.11 of its industry.

We can additionally observe that CAVA currently boasts a PEG ratio of 4.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

The court blocked the companies from closing the acquisition through mid-August, as a judge considers two lawsuits challenging it.

Rexford Industrial (REXR - Free Report) came out with quarterly funds from operations (FFO) of $0.63 per share, beating the Zacks Consensus Estimate of $0.6 per share. This compares to FFO of $0.59 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +5.00%. A quarter ago, it was expected that this industrial real estate investment trust would post FFO of $0.6 per share when it actually produced FFO of $0.61, delivering a surprise of +1.67%.

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

Rexford Industrial, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $245.51 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.23%. This compares to year-ago revenues of $249.51 million. The company has topped consensus revenue estimates just once over the last four quarters.

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

Rexford Industrial shares have lost about 5% since the beginning of the year versus the S&P 500's gain of 9.6%.

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

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

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

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.59 on $245.99 million in revenues for the coming quarter and $2.40 on $986.38 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, American Tower (AMT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28.

This wireless communications infrastructure company is expected to post quarterly earnings of $2.71 per share in its upcoming report, which represents a year-over-year change of +4.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

American Tower's revenues are expected to be $2.71 billion, up 3.1% from the year-ago quarter.

Apple (AAPL - Free Report) closed at $321.66 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Shares of the maker of iPhones, iPads and other products witnessed a gain of 11.19% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.58%, and the S&P 500's gain of 0.42%.

Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2026. The company's earnings per share (EPS) are projected to be $1.88, reflecting a 19.75% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $108.79 billion, reflecting a 15.69% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.76 per share and a revenue of $479.05 billion, indicating changes of +17.43% and +15.11%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Apple presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Apple currently has a Forward P/E ratio of 37.2. This represents a premium compared to its industry average Forward P/E of 23.5.

We can also see that AAPL currently has a PEG ratio of 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Micro Computers industry currently had an average PEG ratio of 2.81 as of yesterday's close.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 19, finds itself in the top 8% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.

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Tesla (TSLA -14.38%) stock sank nearly 15% in value this week after reporting quarterly earnings. Clearly, the market disliked what it heard from the company’s management team, including CEO Elon Musk. But there was some good news tucked into the data-packed announcement.

On the positive front, Tesla’s sales rose 26% year-over-year to $28.24 billion, beating most Wall Street estimates. Gross margins, however, slid from 19.2% in the first quarter to 16.3%, reflecting weaker pricing power and various one-time charges. Weaker margins hurt the company’s adjusted earnings per share, which came in at $0.33, below consensus estimates of roughly $0.50.

Most importantly, Tesla revealed surging capital expenditures, which shot higher 142% year-over-year to $5.8 billion. The company confirmed that capital expenditures for the year will exceed $25 billion to support its ongoing efforts to scale for AI compute, robotics, and chip manufacturing infrastructure. Surging capital expenditures weighed on free cash flow, which came in at negative $1.09 billion for the quarter.

Why did the market punish Tesla stock so harshly following earnings? The biggest concern deals with the pace and scale of its robotaxi division’s expansion.

Last year, Elon Musk told investors that its robotaxi service would expand at a "hyper-exponential rate". This quarter, however, Musk took a more cautious approach, warning of a slower-than-expected rollout. Analysts pushed back on the tone shift, with one pressing Musk on why the company’s robotaxi fleet was stuck “in the dozens as opposed to hundreds,” as previous guidance had predicted.

The market is clearly concerned about Tesla’s rising capital expenditures amid limited traction in growth markets like robotaxis. In other words, the market wants to see more from the company in exchange for higher spending.

Does Tesla’s robotaxi struggles portend trouble ahead for other EV stocks like Rivian (RIVN -4.04%) and Lucid Group (LCID -4.87%), both of which are expected to benefit from growth in the global robotaxi market? The short answer is yes, but the full answer is more complicated.

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Here’s how the news from Tesla impacts Rivian and Lucid GroupRobotaxis are set to become a major global market. Some experts believe that robotaxis could ultimately become a $5 trillion to $10 trillion market. Tesla is primed to take a huge chunk of this market. Its business is largely vertically integrated, with an ability to both manufacture the physical vehicles and create the software necessary for operating a robotaxi fleet at scale.

Rivian and Lucid have slightly different exposures. For now, these two businesses are positioned as supplier to the robotaxi market rather than direct competitors.

Popular ridesharing service Uber Technologies (UBER -2.02%), for example, is investing aggressively to scale its robotaxi fleet. But Uber doesn’t have any internal manufacturing capabilities. So, it must purchase vehicles from other companies.

Image source: Getty Images

Earlier this year, Uber agreed to purchase up to 50,000 Rivian R2 SUVs in a $1.25 billion deal. Uber also forged a $500 million deal with Lucid for 35,000 vehicles.

Tesla won’t be buying robotaxi vehicles directly from Rivian or Lucid given it can produce its own vehicles. But Tesla’s inability to scale it robotaxi fleet is an indicator that the robotaxi industry in general may be experiencing scaling issues. And while Rivian and Lucid have growth catalysts besides selling robotaxis, their respective deals with Uber show how lucrative that end market can be for both companies long term.

In short, investors should pump the brakes on expectations for Lucid and Rivian’s robotaxi growth potential. Robotaxis will still be a lucrative market long term. But judging by Tesla’s struggles, the next year or two may be more difficult for Rivian and Lucid when it comes to benefiting from robotaxi operators need for more fleet vehicles.