DoorDash, Inc. (DASH) Q3 2026 Earnings Call October 29, 2026 8:30 AM EDT
Company Participants
Weston Twigg - Vice President of Finance & Investor Relations
Tony Xu - Co-Founder, CEO & Chair
Ravi Inukonda - Chief Financial Officer
Conference Call Participants
Andrew Boone - Citizens JMP Securities, LLC, Research Division
Shweta Khajuria - Wolfe Research, LLC
Deepak Mathivanan - Cantor Fitzgerald & Co., Research Division
Nikhil Devnani - Bernstein Institutional Services LLC, Research Division
Michael Morton - MoffettNathanson LLC
Josh Beck - Raymond James & Associates, Inc., Research Division
Bernard McTernan - Needham & Company, LLC, Research Division
Youssef Squali - Truist Securities, Inc., Research Division
Dominic Ball - Rothschild & Co Redburn, Research Division
Justin Post - BofA Securities, Research Division
Presentation
Operator
Hello, everyone, and thank you for joining us, and welcome to the DoorDash Third Quarter 2026 Earnings Call. [Operator Instructions]
I will now hand the call over to Weston Twigg. Please go ahead.
Weston Twigg
Vice President of Finance & Investor Relations
All right. Thank you, Dustin. Good afternoon, everyone, and thanks for joining us for our Q3 2026 earnings call. I'm pleased to be joined today by Co-Founder, Chair and CEO, Tony Xu; and CFO, Ravi Inukonda.
We'll be making forward-looking statements during today's call, including, without limitation, our expectations for our business, financial position, operating performance, profitability, our guidance, strategies, capital allocation approach and the broader economic environment. When we -- we will also be making forward-looking statements about our pending acquisition of Instacart, including, without limitation, the expected timing and likelihood of completion of the acquisition and our plans, objectives, intentions and expectations with respect to the acquisition and the combined company.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Many of these uncertainties are described in our SEC filings, including our most
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Newmark Group, Inc. ( NMRK ) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT Company Participants Jason McGruder - Head of Investor Relations Barry Gosin - Chief Executive Officer Michael Rispoli - Chief Financial Officer Lou Alvarado - Chief Operating Officer Conference Call Participants Alexander Goldfarb - Piper Sandler & Co., Research Division Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division Julien Blouin - Goldman Sachs Group, Inc., Research Division Annabelle Ayer - Barclays Bank PLC, Research Division Patrick O'Shaughnessy - Raymond James & Associates, Inc., Research Division Mitch Germain - Citizens JMP Securities, LLC, Research Division Presentation Operator Good day, and welcome to the Newmark 3Q 2026 Public Financial Results Call. Today's conference is being recorded.
Newmark Group NASDAQ: NMRK reported record third-quarter revenue and higher adjusted earnings, driven by growth in its management and servicing businesses and leasing operations, while executives lowered their 2026 outlook to reflect macroeconomic volatility and uncertainty around transaction closings.
Total revenue rose 12.7% year over year to $973.2 million, which Chief Financial Officer Mike Rispoli described as an all-time third-quarter high. Adjusted EBITDA increased 14.6% to $166.4 million, while adjusted earnings per share rose 14.3% to $0.48.
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Chief Executive Officer Barry Gosin said the company continued to see “strong top and bottom-line improvement,” with management and servicing revenue increasing 18% and producing Newmark’s fifth consecutive record quarter in those businesses. Leasing revenue rose 26%, marking its strongest third quarter, according to Gosin.
Management, Leasing Lead Growth Rispoli said Management Services, Servicing Fees and Other revenue increased 18.3%, supported by organic growth in outsourcing businesses, same-store gains in Valuation & Advisory, and six acquisitions completed since the third quarter of 2025.
Leasing revenue increased 26.5%, reflecting higher industrial and office fees in several West Coast markets and Texas. Gosin said leasing demand was supported by artificial intelligence, data centers and other technology sectors, as well as manufacturing, legal services, aerospace, defense and healthcare.
Capital Markets revenue declined 4.4%. Newmark’s investment-sales volumes rose 33.4%, led by senior housing, affordable housing, industrial and retail activity, but that increase was offset by lower loan-origination activity. Rispoli said the origination business faced a difficult comparison with the prior-year quarter, when total debt volumes rose 129.1%.
Industry activity involving government-sponsored enterprises declined about 30% during the quarter, according to Rispoli. However, he said Newmark gained more than 70 basis points of combined Fannie Mae and Freddie Mac market share over the trailing 12 months.
Newmark said recurring businesses represented about 40% of year-to-date revenue, up from 24% in 2017. Gosin said the company expects management and servicing operations to generate more than $2 billion in annual revenue in 2029, implying double-digit growth.
Outlook Reduced Amid Capital Markets Uncertainty The company revised its full-year 2026 outlook, citing the anticipated effect of macroeconomic conditions on transaction volumes. Newmark now expects:
Total revenue of $3.7 billion to $3.8 billion, representing growth of 12% to 15%. Adjusted EBITDA of $629 million to $667 million, up 12% to 19%. An adjusted earnings tax rate of 13% to 15%, compared with 11.4% a year earlier. Adjusted EPS of $1.80 to $1.90, an increase of 11% to 17%. Rispoli said the projected results would still represent Newmark’s best annual performance for revenue, adjusted EBITDA and adjusted EPS.
For 2027, management did not provide formal guidance but said it currently expects earnings, excluding acquisitions, could range from down 10% to up 10% compared with projected record 2026 results. Rispoli said recurring businesses are expected to maintain double-digit growth and leasing is expected to grow at a single-digit pace, but Capital Markets volume could remain under pressure through at least the first half of 2027.
He said a downside case would involve sustained interest-rate volatility and continued increases in the 10-year Treasury yield, which could cause Capital Markets revenue to decline by 20% to 30%. The company’s base case is for conditions to improve and for Newmark to have “a pretty good year” in 2027, he said.
Chief Operating Officer Lou Alvarado said deals have been taking longer to close following a 50-basis-point move higher in rates and an increase in the 10-year Treasury yield. Higher rates have also pressured capitalization rates and asset values, he said.
“Nobody’s walked from the table. They’ve just moved the table,” Gosin said of the company’s deal pipeline.
Cash Flow, Buybacks and Investment Priorities Total expenses rose 13.5%, or 10.8% excluding pass-through items, with most of the increase tied to commission-based revenue growth and global expansion initiatives, Rispoli said.
Newmark ended the quarter with $240 million in cash and cash equivalents, $877.5 million in total corporate debt and net leverage of 1x. Trailing 12-month adjusted free cash flow increased 16% to $336.8 million.
The company repurchased 3.9 million shares for $59.4 million near the end of the quarter. On Oct. 28, the board reauthorized a $400 million share-repurchase program, and Rispoli said management anticipates additional repurchases given the company’s financial position and recent share price.
Newmark has shifted more of its capital allocation toward acquisitions in recurring-revenue businesses after building out its U.S. platform and filling gaps in major Capital Markets asset classes, Rispoli said. The company has completed six acquisitions during the past year, all in Management Services, Servicing Fees and Other, according to management.
Leadership Transition and International Expansion Gosin reiterated that he will step down as CEO at the end of 2026 after 47 years with the company. He said Newmark is evaluating both internal and external candidates and expects to identify a successor by year-end. Gosin said he will remain involved to assist with the transition.
The company also plans to expand internationally over the next 18 to 24 months across nearly all service lines. About 13% of Newmark’s revenue currently comes from outside the United States, Gosin said, compared with more than double or triple that share for large full-service peers.
Management said international growth is intended to strengthen Newmark’s ability to compete for outsourcing assignments from global occupiers and broaden collaboration across its service lines.
About Newmark Group (NASDAQ:NMRK)Newmark Group, Inc is a global commercial real estate services company that provides advisory, transaction, and management services to occupiers, owners, investors, and developers. Its services cover office, industrial, retail, multifamily, hospitality, and other commercial property sectors.
The company assists clients with leasing, investment sales, acquisition and disposition advisory, debt and structured finance, valuation, consulting, and property and facilities management. Newmark also provides corporate real estate services, workplace strategy, capital markets advice, and technology-enabled data and research solutions.
Newmark serves clients through operations in major real estate markets across North America, Europe, Asia-Pacific, and other international regions.
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Plexus Is Booming—But Can the Growth Story Last?Plexus NASDAQ: PLXS reported record fourth-quarter revenue and raised its fiscal 2027 growth outlook, citing stronger end-market demand, program ramps and continued market-share gains across its aerospace and defense, healthcare and industrial businesses.
For the fiscal fourth quarter, revenue reached a record $1.43 billion, up 9% sequentially and 35% year over year. Fiscal 2026 revenue rose 23% to approximately $5 billion. President and CEO Todd Kelsey said the company now expects fiscal 2027 revenue growth in the mid- to upper-teens range.
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This mid-cap tech stock just jumped 30%...and is still cheapNon-GAAP operating margin was 6.7% in the fourth quarter, improving 40 basis points sequentially and nearly 100 basis points from a year earlier. Non-GAAP diluted earnings per share totaled $2.84, exceeding the company’s guidance range. For the full fiscal year, non-GAAP operating margin increased 30 basis points to 6.2%.
New Margin Goal and Fiscal 2027 Outlook Plexus introduced a new long-term non-GAAP operating-margin target of 6.5% to 7%, replacing its prior 6% goal after consistently exceeding that threshold. CFO David Abuhl said the new target reflects expected benefits from revenue leverage, operational efficiencies, automation initiatives and continuous-improvement efforts, balanced against ongoing investments in people, technology, capacity and capabilities.
For the fiscal first quarter, Plexus guided for revenue of $1.41 billion to $1.46 billion, representing 34% year-over-year growth at the midpoint. The company expects non-GAAP operating margin of 6% to 6.4% and non-GAAP EPS of $2.46 to $2.62.
Abuhl said first-quarter margin is expected to decline sequentially as Plexus increases investments to support its improved revenue outlook. Still, the company expects operating-margin expansion for fiscal 2027, with operating flow-through at the low end of its 8% to 12% target range.
The company forecast fiscal 2027 free cash flow of more than $100 million. Plexus ended fiscal 2026 with a 62-day cash cycle, its best performance on record and one day better than the prior year. Fourth-quarter return on invested capital was 15.8%, the company’s highest result in nearly a decade and above its 15% enduring goal.
Manufacturing Wins and Pipeline Reach Records Plexus secured 36 new manufacturing wins in the fourth quarter, representing $290 million in annualized revenue once fully ramped. Fiscal 2026 wins totaled nearly $1.2 billion in annualized revenue.
Its funnel of qualified manufacturing opportunities grew by $1.2 billion, or 33% year over year, to a record $4.9 billion. Executive Vice President and COO Oliver Mihm said the increase was driven by record contributions from aerospace and defense and industrial opportunities.
Aerospace and defense: Fourth-quarter wins totaled $90 million, bringing fiscal-year wins to $490 million. Revenue in the sector rose 23% for fiscal 2026, and Plexus expects more than 20% growth in fiscal 2027. Healthcare/Life Sciences: Revenue increased 19% during fiscal 2026, driven by therapeutics and imaging. Fourth-quarter wins were $74 million, including three new customers. The company now expects high-single-digit fiscal 2027 growth. Industrial: Revenue rose 27% for fiscal 2026, including a 50% increase in semiconductor-capital-equipment revenue. Fourth-quarter wins totaled $126 million, and Plexus expects fiscal 2027 sector growth to exceed 20%. Within aerospace and defense, Mihm said growth was supported by defense, unmanned systems, commercial aerospace, security and space programs. He said the company sees a mix of increased defense spending and technology-driven opportunities, including engagement with “neo-primes.” Management also said potential demand benefits from Europe remain in the early stages.
In healthcare, Plexus cited growth in therapeutics and monitoring, along with opportunities in robotic surgery and pulsed-field ablation. Mihm added that engineering development activity in the Healthcare/Life Sciences business rose notably during the fourth quarter, which management views as a positive indicator for future demand.
Semi-Cap Strength and Efficiency Initiatives The industrial sector’s fourth-quarter revenue rose 17% sequentially, exceeding the company’s expectations. Plexus attributed the upside to its ability to respond to stronger demand and market-share opportunities among semiconductor-capital-equipment, industrial equipment and communications customers.
Management said semi-cap growth reflects a combination of rising end-market demand, existing share gains from the prior downturn, additional share gains during the current upcycle and program activity. Kelsey said Plexus has reasonable visibility into customer pipelines for roughly the next year, while emphasizing that the market remains cyclical and that the company is taking a conservative approach to longer-term forecasting.
Plexus also highlighted operational efficiency initiatives. Mihm said equipment efficiency has improved by more than 10% over the past two years, while revenue per team member increased about 20% over the same period. In a later response, he said revenue per employee was up 25% comparing the fourth quarter of fiscal 2024 with the fourth quarter of fiscal 2026.
The company has also deployed an internal tool called Excellence Guide to help improve operator efficiency, agility and quality, with deployment increasing 110% year over year. Mihm said Plexus is using artificial intelligence to automate procurement of low-dollar purchase orders, with about 80% of relevant receipts now handled through the AI agent.
Plexus repurchased approximately $21 million of stock during the fourth quarter, completing its expanded fiscal 2026 repurchase program. Its board approved a new $100 million repurchase authorization in August for fiscal 2027, and repurchases have begun, Abuhl said.
About Plexus (NASDAQ:PLXS)Plexus Corp. is an electronics manufacturing services company that helps customers design, develop, manufacture and service complex electronic products. The company provides an integrated product-realization process spanning engineering and design, supply-chain management, manufacturing, testing, logistics and aftermarket services.
Plexus supports original equipment manufacturers in industries including healthcare and life sciences, industrial and commercial, aerospace and defense, and communications.
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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SCHAFFHAUSEN, Switzerland, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) reported its results after market close on October 29, 2026 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The webinar can be accessed from the Investor Relations section of the MPS website at www.monolithicpower.com.
In Q3, MPS achieved another significant milestone exceeding $1 billion in quarterly revenue for the first time. Q3 revenue of $1.2 billion was 22.6% higher than the second quarter of 2026 and 63.1% higher than the third quarter of 2025.
During the quarter:
Our capacity surpassed $6 billion dollars in annual revenue support. We expect to have $8 billion of capacity in place by the second half of 2027 on our way to $10 billion in support of our rapidly expanding business. In our enterprise data end market:
We saw strong demand across our existing customers which we expect to continue into 2027. In addition, using our in-house developed AI design tools we significantly expanded our customer base in traditional areas, as well as in new applications such as desktop AI designs. In addition to our rapid Enterprise Data growth:
In Automotive, we received first orders for our 48V power solutions and expect design wins for 48V and Zonal architectures to be a driver of growth in 2027.We started ramping robotics solutions with sensor and motor control products across multiple geographies.We landed our first large data converter design win which we expect to ramp 2027.We continued to increase our SAM with the ramp of our high speed memory products.We continued to build out our high voltage portfolio and began sampling GAN based solutions for use in 800V data center architectures complementing our existing SiC based designs. Our diversified market strategy remains unchanged:
MPS focuses on innovation and solving our customers’ most challenging problems.We consistently invest in new technologies that open new end markets and applications.We continue to transform from a chip-only semiconductor supplier to a full service solution provider.We continuously expand and diversify our global supply chain allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur. “Overall, we see accelerated growth. Our diversified growth strategy is paying off,” said Michael Hsing, CEO and founder of MPS.
Q3 2026 Revenue Results
We had record revenue of $1,202 million in the third quarter, 22.6% higher than the second quarter of 2026 and 63.1% higher than revenue in the third quarter of 2025. Compared with the second quarter of 2026, sales improved sequentially across Communications, Enterprise Data, Industrial, Automotive and Consumer end markets.
In our Communications end market, third quarter revenue of $187.4 million was up 42.5% from the second quarter primarily as a result of higher sales of power solutions for optical modules and switches. Third quarter Communications revenue was up 134.7% year over year. Communications sales represented 15.6% of our total third quarter revenue compared with 13.4% in the second quarter of 2026.
Third quarter Enterprise Data revenue of $506.7 million increased 33.2% from the second quarter. The sequential increase was driven by higher sales of our power management solutions for AI and server applications. Third quarter Enterprise Data revenue was up 164.6% year over year. Enterprise Data revenue represented 42.1% of our total third quarter revenue compared with 38.8% in the second quarter of 2026.
Third quarter Industrial revenue of $71.4 million increased 30.2% from the second quarter primarily as a result of higher sales for power sources. Third quarter Industrial revenue was up 29.0% year over year. Industrial revenue represented 6.0% of our total third quarter revenue compared with 5.6% in the second quarter of 2026.
Third quarter Automotive revenue of $180.7 million increased 15.0% from the second quarter primarily from higher sales of ADAS power solutions. Third quarter Automotive revenue was up 19.2% year over year. Automotive revenue represented 15.0% of our third quarter revenue compared with 16.0% in the second quarter of 2026.
Third quarter Consumer revenue of $64.0 million increased 12.6% from the second quarter. Third quarter Consumer revenue was down 11.6% year over year. Consumer revenue represented 5.3% of our total third quarter revenue compared with 5.8% in the second quarter of 2026.
Third quarter Storage and Computing revenue of $192.2 million decreased 3.8% from the second quarter. Third quarter Storage and Computing revenue was up 3.0% year over year. Storage and Computing revenue represented 16.0% of MPS’s third quarter revenue compared with 20.4% in the second quarter of 2026.
Q3 2026 Gross Margin & Operating Income
GAAP gross margin was 55.4%, 0.2 percentage points higher than the second quarter of 2026. Our GAAP operating income was $357.7 million compared to $303.9 million reported in the second quarter of 2026.
Non-GAAP gross margin for the third quarter of 2026 was 55.7%, 0.1 percentage points higher than the second quarter of 2026. Our non-GAAP operating income was $464.5 million compared to $367.7 million reported in the second quarter of 2026.
Q3 2026 Operating Expenses
GAAP operating expenses were $307.9 million in the third quarter of 2026 compared with $237.2 million in the second quarter of 2026. Non-GAAP operating expenses were $205.3 million, up from $177.6 million in the second quarter of 2026.
The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income (expense).
Total stock-based compensation and related expenses, including approximately $3.7 million charged to cost of goods sold, was $106.3 million in the third quarter of 2026 compared with $53.5 million in the second quarter of 2026.
The Bottom Line
Third quarter 2026 GAAP net income was $271.1 million or $5.51 per fully diluted share, compared with $257.3 million or $5.22 per fully diluted share in the second quarter of 2026.
Third quarter 2026 non-GAAP net income was $402.7 million or $8.19 per fully diluted share, compared with $320.1 million or $6.50 per fully diluted share in the second quarter of 2026.
Third quarter 2026 non-GAAP tax rate of 15% was flat to the second quarter of 2026.
There were 49.2 million fully diluted shares outstanding at the end of the third quarter of 2026.
We repurchased $453.4 million of our stock in the third quarter, compared to $4.0 million in the second quarter of 2026.
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments were $1,091 million at the end of the third quarter of 2026 compared to $1,414 million at the end of the second quarter of 2026. For the third quarter of 2026, MPS generated operating cash flow of $289.9 million compared with second quarter of 2026 operating cash flow of $227.9 million.
Accounts receivable at the end of the third quarter of 2026 were $461.6 million, representing 35 days of sales outstanding, which was 3 days higher than the 32 days reported at the end of the second quarter of 2026.
Our internal inventories at the end of the third quarter of 2026 were $764.9 million, up from $675.8 million at the end of the second quarter of 2026. Days of inventory of 130 days at the end of the third quarter of 2026 was 10 days lower than at the end of the second quarter of 2026.
Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the third quarter of 117 days was 2 days higher than at the end of the second quarter of 2026.
Selected Balance Sheet and Inventory Data(Unaudited) Q3'26 Q2'26 Q3'25 Cash, Cash Equivalents, and Short-Term Investments$ 1,091.2 M $ 1,413.8 M $ 1,269.5 M Operating Cash Flow$ 289.9 M $ 227.9 M $ 239.3 M Accounts Receivable$ 461.6 M $ 343.6 M $ 241.6 M Days of Sales Outstanding35 Days 32 Days 30 Days Internal Inventories$ 764.9 M $ 675.8 M $ 505.7 M Days of Inventory (current quarter revenue)130 Days 140 Days 139 Days Days of Inventory (next quarter revenue)117 Days 115 Days 137 Days
Q4 2026 Business Outlook
For the fourth quarter of 2026 ending December 31, we are forecasting:
Revenue in the range of $1,315 million to $1,385 million.GAAP gross margin in the range of 55.2% to 55.8%.Non-GAAP gross margin in the range of 55.5% to 56.1%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.Total stock-based compensation and related expenses in the range of $121.0 million to $125.0 million including approximately $3.8 million that would be charged to cost of goods sold.GAAP operating expenses between $334.0 million and $342.0 million.Non-GAAP operating expenses in the range of $216.8 million to $220.8 million. This estimate excludes stock-based compensation and related expenses in the range of $117.2 million to $121.2 million.Interest and other income in the range from $7.8 million to $8.2 million before foreign exchange gains or losses.Non-GAAP tax rate of 15% for 2026.Fully diluted shares outstanding in the range of 48.9 to 49.3 million shares. Furthermore, in October 2026, our Board of Directors authorized an additional $500 million for stock repurchases, bringing our total current authorization to $1 billion after repurchases made during the third quarter of 2026.
For further information, contact:
Tony Balow
Vice President, Chief Financial Officer
Monolithic Power Systems, Inc.
[email protected]
Safe Harbor Statement
This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q4 2026 Business Outlook” section herein, the quote from our Chief Executive Officer regarding our growth and success of our business strategy, our statements regarding our business focus, expected capacity growth and the timing thereof, expected strong demand across our existing customers into 2027, expected design wins as a driver of growth for our Automotive end market in 2027, increasing sales of robotic solutions across multiple geographies, increasing sales of large data converters in 2027, the continued increase in our SAM through increasing sales of our high speed memory products, the build out of our high voltage portfolio and GAN based solutions, investments in new technologies that open new end markets and applications, and the expansion and diversification of our supply chain to allow us to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the fourth quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our goal to expand our capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described above. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential global conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential global conflicts; the Company’s ability to timely and adequately remediate its material weakness; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 27, 2026. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.
Non-GAAP Financial Measures
This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, amortization of acquisition-related intangible assets, net deferred compensation plan expense, and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.
About Monolithic Power Systems
MPS is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.
Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.
Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value) September 30, December 31, 2026
2025
ASSETS Current assets: Cash and cash equivalents$560,544 $1,099,302 Short-term investments 530,690 157,243 Accounts receivable, net 461,633 255,626 Inventories 764,879 564,649 Other current assets 54,024 106,982 Total current assets 2,371,770 2,183,802 Property and equipment, net 821,573 627,689 Acquisition-related intangible assets, net 7,929 8,790 Goodwill 25,944 25,944 Deferred tax assets, net 1,183,003 1,182,883 Other long-term assets 262,362 165,091 Total assets$4,672,581 $4,194,199 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$236,469 $138,272 Accrued compensation and related benefits 136,528 85,963 Other accrued liabilities 267,657 145,130 Total current liabilities 640,654 369,365 Income tax liabilities 75,022 75,022 Deferred tax liabilities 90,316 90,480 Other long-term liabilities 132,849 127,835 Total liabilities 938,841 662,702 Commitments and contingencies Stockholders’ equity: Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 48,792 and 48,709, respectively 690,429 936,998 Retained earnings 3,034,058 2,609,651 Accumulated other comprehensive income (loss) 9,253 (15,152) Total stockholders’ equity 3,733,740 3,531,497 Total liabilities and stockholders’ equity$4,672,581 $4,194,199 Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts)
Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Revenue$1,202,409 $737,176 $2,987,236 $2,039,304 Cost of revenue 536,870 330,948 1,335,562 913,830 Gross profit 665,539 406,228 1,651,674 1,125,474 Operating expenses: Research and development 140,581 98,173 359,765 286,666 Selling, general and administrative 167,271 112,872 389,176 310,108 Total operating expenses 307,852 211,045 748,941 596,774 Operating income 357,687 195,183 902,733 528,700 Other income, net 8,936 10,392 32,801 27,743 Income before income taxes 366,623 205,575 935,534 556,443 Income tax expense 95,556 25,809 213,943 106,616 Net income$271,067 $179,766 $721,591 $449,827 Net income per share: Basic$5.53 $3.75 $14.70 $9.40 Diluted$5.51 $3.74 $14.66 $9.37 Weighted-average shares outstanding: Basic 49,052 47,898 49,097 47,879 Diluted 49,184 48,042 49,230 48,022 RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Net income$271,067 $179,766 $721,591 $449,827 Adjustments to reconcile net income to non-GAAP net income: Stock-based compensation and related expenses 106,288 60,875 208,375 174,966 Amortization of acquisition-related intangible assets 320 320 960 960 Deferred compensation plan expense, net 544 423 1,129 698 Tax effect 24,489 (14,270) 42,043 (3,344) Non-GAAP net income$402,708 $227,114 $974,098 $623,107 Non-GAAP net income per share: Basic$8.21 $4.74 $19.84 $13.01 Diluted$8.19 $4.73 $19.79 $12.98 Shares used in the calculation of non-GAAP net income per share: Basic 49,052 47,898 49,097 47,879 Diluted 49,184 48,042 49,230 48,022 RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Gross profit$665,539 $406,228 $1,651,674 $1,125,474 Gross margin 55.4% 55.1% 55.3% 55.2% Adjustments to reconcile gross profit to non-GAAP gross profit: Stock-based compensation and related expenses 3,702 1,917 7,151 5,538 Amortization of acquisition-related intangible assets 287 287 861 861 Deferred compensation plan expense 261 500 1,731 942 Non-GAAP gross profit$669,790 $408,932 $1,661,418 $1,132,815 Non-GAAP gross margin 55.7% 55.5% 55.6% 55.5% RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Total operating expenses$307,852 $211,045 $748,941 $596,774 Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: Stock-based compensation and related expenses (102,586) (58,958) (201,224) (169,428)Amortization of acquisition-related intangible assets (33) (33) (99) (99)Deferred compensation plan income (expense) 72 (3,715) (6,386) (7,778)Non-GAAP operating expenses$205,306 $148,339 $541,233 $419,469 RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Total operating income$357,687 $195,183 $902,733 $528,700 Adjustments to reconcile total operating income to non-GAAP total operating income: Stock-based compensation and related expenses 106,288 60,875 208,375 174,966 Amortization of acquisition-related intangible assets 320 320 960 960 Deferred compensation plan expense 189 4,215 8,117 8,720 Non-GAAP operating income$464,484 $260,593 $1,120,185 $713,346 RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
(Unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Total other income, net$8,936 $10,392 $32,801 $27,743 Adjustments to reconcile other income, net to non-GAAP other income, net: Deferred compensation plan expense (income) 355 (3,792) (6,988) (8,022) Non-GAAP other income, net$9,291 $6,600 $25,813 $19,721 RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025Total income before income taxes$366,623 $205,575 $935,534 $556,443 Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: Stock-based compensation and related expenses 106,288 60,875 208,375 174,966 Amortization of acquisition-related intangible assets 320 320 960 960 Deferred compensation plan expense, net 544 423 1,129 698 Non-GAAP income before income taxes$473,775 $267,193 $1,145,998 $733,067 2026 FOURTH QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)
Three Months Ending December 31, 2026 Low HighGross margin55.2% 55.8% Adjustment to reconcile gross margin to non-GAAP gross margin: Stock-based compensation and other expenses0.3 0.3 Non-GAAP gross margin55.5% 56.1% RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
Three Months Ending December 31, 2026 Low HighOperating expenses$334,000 $342,000 Adjustments to reconcile operating expenses to non-GAAP operating expenses: Stock-based compensation and other expenses (117,200) (121,200)Non-GAAP operating expenses$216,800 $220,800
SCHAFFHAUSEN, Switzerland, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS” or the “Company”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced the appointments of Tony Balow as Vice President, Chief Financial Officer (“CFO”) and Robert Dean as Vice President, Chief Accounting Officer (“CAO”), effective immediately.
“I am very pleased to appoint Tony as our new CFO and Rob as our new CAO,” said Michael Hsing, CEO and founder of MPS. “In the past few years, Tony and Rob have become an integral part of the management team. Their deep knowledge of MPS’s business operations and their financial acumen make them highly qualified to take on the CFO and CAO roles and lead our finance team.”
Mr. Balow served as the Company’s Vice President of Finance from September 2023 to October 2026. Prior to joining the Company, Mr. Balow spent 23 years at Intel, a global semiconductor company, and held a number of senior positions. Mr. Balow holds a Bachelor of Science and a Master of Science in Aerospace, Aeronautical and Astronautical Engineering from the University of Illinois Urbana-Champaign, and a Master of Business Administration from the University of Arizona.
Mr. Dean served as the Company’s Interim Chief Financial Officer from February 2026 to October 2026, and Corporate Controller from June 2016 to February 2026. Prior to joining the Company, Mr. Dean held various senior finance and accounting roles for other publicly traded companies, including Netflix, Varian and Applied Materials. Mr. Dean holds a Bachelor of Science in Accounting from San Jose State University and a Master of Business Administration from Santa Clara University.
About Monolithic Power Systems
Monolithic Power Systems, Inc. is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.
Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.
Contact:
Tony Balow
Vice President, Chief Financial Officer
Monolithic Power Systems, Inc. [email protected]
Company advances agentic strategy while driving margin expansion | Source: SPS Commerce, Inc.
MINNEAPOLIS, Oct. 29, 2026 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ: SPSC), the leading intelligent supply chain network, today announced financial results for the third quarter ended September 30, 2026.
Financial Highlights
Third Quarter 2026 Financial Highlights
Revenue was $197.6 million in the third quarter of 2026, compared to $189.9 million in the third quarter of 2025, reflecting 4% growth, which was partially offset by the divestiture of the 3P Revenue Recovery business completed in the second quarter of 2026, and variability in the 1P Revenue Recovery take rate model.Recurring revenue grew 4% from the third quarter of 2025.Net income was $30.7 million or $0.85 per diluted share, compared to net income of $25.6 million or $0.67 per diluted share in the third quarter of 2025.Non-GAAP income was $50.2 million or $1.39 per diluted share, compared to non-GAAP income of $43.0 million or $1.13 per diluted share in the third quarter of 2025.Adjusted EBITDA for the third quarter of 2026 increased 17% to $70.9 million compared to the third quarter of 2025.Share repurchases in the third quarter of 2026 totaled $48.8 million. “The progress we have made to date with our agentic transformation initiatives – both across our product portfolio and internally – has exceeded my expectations. I want to recognize all of Team SPS for their agentic-first mindset and commitment to this transformation,” said Chad Collins, CEO of SPS Commerce. “With our agentic strategy advancing, we are uniquely positioned to deliver sustainable, profitable growth, backed by the combination of AI and SPS’ intelligent network – a powerful and durable competitive moat that no one else can match.”
“Our third quarter financial results clearly demonstrate the strong operating leverage embedded in our business model,” said Joe Del Preto, CFO of SPS Commerce. “Continued margin expansion underscores both our commitment to disciplined cost management and the tangible efficiency gains we're unlocking through agentic customer onboarding.”
Guidance
As a result of the divestiture of the 3P Revenue Recovery business on June 30, 2026, guidance factors in a reduction of approximately $10.5 million in revenue to the second half of 2026. The divestiture is expected to be neutral to Adjusted EBITDA in the second half of 2026.
Fourth Quarter 2026 Guidance
Revenue is expected to be in the range of $199.3 million to $201.3 million.Net income per diluted share is expected to be in the range of $0.74 to $0.79, with fully diluted weighted average shares outstanding of 36.0 million shares.Non-GAAP income per diluted share is expected to be in the range of $1.31 to $1.36.Adjusted EBITDA is expected to be in the range of $72.0 million to $74.0 million.Non-cash, share-based compensation expense is expected to be $17.0 million, depreciation expense is expected to be $6.1 million, and amortization expense is expected to be $12.3 million.
Fiscal Year 2026 Guidance
Revenue is expected to be in the range of $786.9 million to $788.9 million, representing approximately 5% growth over 2025.Net income per diluted share is expected to be in the range of $2.29 to $2.35, with fully diluted weighted average shares outstanding of 36.6 million shares.Non-GAAP income per diluted share is expected to be in the range of $5.05 to $5.11.Adjusted EBITDA is expected to be in the range of $267.4 million to $269.4 million, reflecting an Adjusted EBITDA margin of 34% at the midpoint, an increase of approximately 330 basis points compared to full year 2025.Non-cash, share-based compensation expense is expected to be $69.5 million, depreciation expense is expected to be $24.1 million, and amortization expense is expected to be $40.8 million.
The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.
Quarterly Conference Call
To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q3 2026 conference call. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com.
About SPS Commerce
SPS Commerce (NASDAQ: SPSC) is the leading intelligent supply chain network, connecting trading partners around the globe to optimize supply chain operations with all retail partners. Our AI-powered network connects 300,000+ trading relationships worldwide and moves more than 750M transactions and over $650B in gross merchandise value each year. From retailers and brands to manufacturers, distributors, and logistics providers, SPS is trusted by seven of the top ten largest retailers, and over two-thirds of today’s fastest growing brands. Our multi-solution portfolio orchestrates the data, decisions, and relationships that keep the world's supply chains moving forward. With nearly 3,000 employees and offices worldwide, SPS Commerce is headquartered in Minneapolis, Minnesota. For more information, visit www.spscommerce.com.
SPS-F
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.
Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.
Adjusted EBITDA Measures:
Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain from investments and foreign currency transactions, investment income, loss on sale of business, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended September 30, 2026 included asset disposals and for the nine months ended September 30, 2026, included the remeasurement of an acquired earn-out liability, asset disposals, and the net impact of divestiture-related exit and disposal activity. Net income is the most directly comparable GAAP measure of financial performance.
Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.
Non-GAAP Income Per Share Measure:
Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain from investments and foreign currency transactions, loss on sale of business, and other adjustments as necessary for a fair presentation, including for the three months ended September 30, 2026 asset disposals and for the nine months ended September 30, 2026, the remeasurement of an acquired earn-out liability, asset disposals, net impact of divestiture-related exit and disposal activity, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the most directly comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of SPS Commerce's future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the fourth quarter and full year of 2026, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce's Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce's future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
SPS COMMERCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; In thousands, except shares)
September 30,
2026 December 31,
2025ASSETS Current assets Cash and cash equivalents$153,818 $151,355 Short-term investments 29,683 — Accounts receivable 74,477 75,295 Allowance for credit losses (8,302) (7,129)Accounts receivable, net 66,175 68,166 Deferred costs 64,181 66,693 Other assets 33,164 49,090 Total current assets 347,021 335,304 Property and equipment, net 43,943 43,117 Operating lease right-of-use assets 5,656 5,025 Goodwill 539,089 541,719 Intangible assets, net 162,545 215,815 Other assets Deferred costs, non-current 19,996 20,719 Deferred income tax assets 492 493 Other assets, non-current 13,856 7,667 Total assets$1,132,598 $1,169,859 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable$9,881 $13,757 Accrued compensation 47,459 47,577 Accrued expenses 16,059 13,074 Deferred revenue 79,342 75,590 Operating lease liabilities 1,232 4,353 Total current liabilities 153,973 154,351 Other liabilities Deferred revenue, non-current 3,910 5,288 Operating lease liabilities, non-current 5,392 2,839 Deferred income tax liabilities 36,166 33,201 Other liabilities, non-current 255 287 Total liabilities 199,696 195,966 Commitments and contingencies Stockholders' equity Common stock 40 40 Treasury stock (328,155) (177,949)Additional paid-in capital 778,767 722,737 Retained earnings 486,714 429,438 Accumulated other comprehensive loss (4,464) (373)Total stockholders’ equity 932,902 973,893 Total liabilities and stockholders’ equity$1,132,598 $1,169,859 SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in thousands, except per share amounts)
Three Months Ended
September 30, Nine Months Ended
September 30, 2026 2025 2026 2025Revenues$197,647 $189,904 $587,583 $558,853Cost of revenues (1) 57,101 57,932 175,346 174,672Gross profit 140,546 131,972 412,237 384,181Operating expenses Sales and marketing (1) 43,474 42,322 132,144 127,390Research and development (1) 16,546 17,276 51,420 51,986General and administrative (1) 30,831 31,690 103,851 93,598Amortization of intangible assets 9,766 9,493 28,467 27,590Loss on sale of business — — 23,454 —Total operating expenses 100,617 100,781 339,336 300,564Income from operations 39,929 31,191 72,901 83,617Other income, net 1,372 1,260 4,774 4,240Income before income taxes 41,301 32,451 77,675 87,857Income tax expense 10,618 6,882 20,399 20,359Net income$30,683 $25,569 $57,276 $67,498 Net income per share Basic$0.85 $0.67 $1.56 $1.78Diluted$0.85 $0.67 $1.56 $1.77 Weighted average common shares used to compute net income per share Basic 35,900 37,895 36,599 37,939Diluted 36,209 37,993 36,740 38,070 (1) Amounts include stock-based compensation expense as follows: Three Months Ended
September 30, Nine Months Ended
September 30, 2026 2025 2026 2025Cost of revenues$3,383 $3,171 $9,787 $9,610Operating expenses Sales and marketing 4,086 3,486 12,345 9,270Research and development 2,415 2,354 7,086 6,506General and administrative 5,809 5,442 23,244 17,932Total stock-based compensation expense$15,693 $14,453 $52,462 $43,318 SPS COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
Nine Months Ended
September 30, 2026 2025 Cash flows from operating activities Net income$57,276 $67,498 Reconciliation of net income to net cash provided by operating activities Deferred income taxes 890 12,583 Depreciation and amortization of property and equipment 18,056 15,302 Amortization of intangible assets 28,467 27,590 Accretion of purchase discounts on investments (257) — Provision for credit losses 6,497 6,843 Stock-based compensation 52,462 43,318 Loss on sale of business 23,454 — Other, net (1,280) (343)Changes in assets and liabilities, net of effects of acquisitions Accounts receivable (6,536) (16,301)Deferred costs 2,912 234 Other assets and liabilities 7,545 (25,233)Accounts payable (2,837) 2,925 Accrued compensation (2,808) 1,035 Accrued expenses 259 (2,226)Deferred revenue 2,772 1,051 Operating leases (1,208) (1,357)Net cash provided by operating activities 185,664 132,919 Cash flows from investing activities Purchases of property and equipment (21,246) (18,873)Purchases of investments (34,444) — Maturities of investments 5,000 — Proceeds from sale, net 8,768 — Acquisition of business, net — (142,628)Net cash used in investing activities (41,922) (161,501)Cash flows from financing activities Repurchases of common stock (147,205) (89,556)Net proceeds from exercise of options to purchase common stock 1,035 3,481 Net proceeds from employee stock purchase plan activity 4,718 5,924 Net cash used in financing activities (141,452) (80,151)Effect of foreign currency exchange rate changes 173 1,441 Net increase (decrease) in cash and cash equivalents 2,463 (107,292)Cash and cash equivalents at beginning of period 151,355 241,017 Cash and cash equivalents at end of period$153,818 $133,725 SPS COMMERCE, INC.
NON-GAAP RECONCILIATIONS
(Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
Adjusted EBITDA Three Months Ended
September 30, Nine Months Ended
September 30, 2026 2025 2026 2025 Net income$30,683 $25,569 $57,276 $67,498 Income tax expense 10,618 6,882 20,399 20,359 Depreciation and amortization of property and equipment 6,072 5,354 18,056 15,302 Amortization of intangible assets 9,766 9,493 28,467 27,590 Stock-based compensation expense 15,693 14,453 52,462 43,318 Realized loss (gain) from investments and foreign currency transactions 13 (205) (509) (678)Investment income (1,611) (1,076) (3,973) (3,613)Loss on sale of business — — 23,454 — Other (366) 10 (201) 1,129 Adjusted EBITDA$70,868 $60,480 $195,431 $170,905 Adjusted EBITDA Margin Three Months Ended
September 30, Nine Months Ended
September 30, 2026 2025 2026 2025 Revenue$197,647 $189,904 $587,583 $558,853 Net income 30,683 25,569 57,276 67,498 Margin 16% 13% 10% 12% Adjusted EBITDA 70,868 60,480 195,431 170,905 Adjusted EBITDA Margin 36% 32% 33% 31% Non-GAAP Income per Share Three Months Ended
September 30, Nine Months Ended
September 30, 2026 2025 2026 2025 Net income$30,683 $25,569 $57,276 $67,498 Stock-based compensation expense 15,693 14,453 52,462 43,318 Amortization of intangible assets 9,766 9,493 28,467 27,590 Realized loss (gain) from investments and foreign currency transactions 13 (205) (509) (678)Loss on sale of business — — 23,454 — Other (366) 10 (201) 1,129 Income tax effects of adjustments (5,628) (6,365) (23,277) (19,935)Non-GAAP income$50,161 $42,955 $137,672 $118,922 Shares used to compute net income and non-GAAP income per share Basic 35,900 37,895 36,599 37,939 Diluted 36,209 37,993 36,740 38,070 Net income per share, basic$0.85 $0.67 $1.56 $1.78 Non-GAAP adjustments to net income per share, basic 0.55 0.46 2.20 1.35 Non-GAAP income per share, basic$1.40 $1.13 $3.76 $3.13 Net income per share, diluted$0.85 $0.67 $1.56 $1.77 Non-GAAP adjustments to net income per share, diluted 0.54 0.46 2.19 1.35 Non-GAAP income per share, diluted$1.39 $1.13 $3.75 $3.12 The annual per share amounts may not cross-sum due to rounding.
Contact:
Investor Relations
The Blueshirt Group
Irmina Blaszczyk [email protected]
Belden Inc. (BDC) Q3 2026 Earnings Call October 29, 2026 8:30 AM EDT
Company Participants
Aaron Reddington - Vice President of Investor Relations
Ashish Chand - President, CEO & Director
Jeremy Parks - Executive VP & CFO
Conference Call Participants
Christopher Dankert - D.A. Davidson & Co., Research Division
Robert Jamieson - Needham & Company, LLC, Research Division
Piyush Avasthy - Citigroup Inc., Research Division
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Steven Fox - Fox Advisors LLC
William Stein - Truist Securities, Inc., Research Division
Presentation
Aaron Reddington
Vice President of Investor Relations
Good morning, and thank you for joining us for Belden's Third Quarter 2026 Earnings Conference Call. With me today are Belden's President and CEO, Ashish Chand; and Executive Vice President and CFO, Jeremy Parks.
Ashish will provide a strategic overview of the quarter, and then Jeremy will cover our financial results and fourth quarter outlook, followed by Q&A. We issued our earnings release earlier this morning and have prepared a slide presentation that we will reference on this call. The press release, presentation and transcript of these prepared remarks are currently available online at investor.belden.com.
Turning to Slide 2. I'd like to remind everyone that today's call will include forward-looking statements, which are subject to risks and uncertainties as detailed in our press release and most recent Form 10-K. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in the appendix to our presentation and on our website.
I will now turn the call over to our President and CEO, Ashish Chand.
Ashish Chand
President, CEO & Director
Thank you, Aaron, and good morning, everybody. We appreciate you joining us.
Please turn to Slide 4.
The third quarter was another record quarter for Belden, and we are well positioned for what's
ATLANTA--(BUSINESS WIRE)--Floor & Decor Holdings, Inc. (the "Company" or "Floor & Decor") (NYSE: FND), a leading specialty retailer of hard surface flooring, today announced a series of changes to its Board of Directors. Effective January 1, 2027, Thomas Taylor, currently Executive Chair of the Board, will transition to the role of Chair of the Board. As part of a coordinated Board succession and refreshment process, the Board has appointed Lauren Taylor Wolfe as a new independent direc.
Key Takeaways FORM's Q3 earnings surged 215.2% year over year, while revenues rose 38.4% to a record $280.5 million.FORM's Systems revenues jumped 63.8%, driven by strong demand for TRITON photonics in CPO.FORM projects Q4 revenues of $285 million, putting annual sales on track to exceed $1 billion. FormFactor (FORM - Free Report) delivered third-quarter 2026 non-GAAP earnings of $1.04 per share, up 215.2% year over year, and beat the Zacks Consensus Estimate by 20.93%.
Revenues increased 38.4% year over year to $280.5 million and surpassed the consensus mark of $271 million by 3.68%. Broad-based demand across foundry and logic, DRAM and co-packaged optics helped FORM post its fourth consecutive quarterly revenue record. Foundry and Logic revenues increased 44.2% year over year, while Systems revenues jumped 63.8%.
FORM’s Probe Card Revenues AdvanceProbe Card revenues reached $221.1 million, increasing 32.9% year over year. The segment benefited from growing demand for semiconductor testing across high-performance computing and advanced memory applications.
Foundry and Logic revenues rose 44.2% year over year to $134 million, representing 10% sequential growth. Strength across data-center CPUs, networking and emerging GPU applications supported performance. FORM highlighted growing demand for CPUs used in agentic AI applications, alongside opportunities in hyperscaler custom ASICs.
FORM shipped probe cards for a GPU design to a leading foundry in multimillion-dollar volumes during the quarter. The company expects to gain additional share in GPU and custom ASIC applications in 2027 as new manufacturing capacity becomes available.
FormFactor’s DRAM Business Maintains MomentumDRAM revenues increased 24.5% year over year to $84.9 million, remaining essentially unchanged from the second-quarter record of $85 million.
The revenue mix shifted toward DDR5 from high-bandwidth memory as customers adjusted wafer production to capitalize on higher DDR pricing. Despite the less favorable mix, manufacturing cost reductions and efficiency improvements supported stronger profitability.
Management expects continued demand for HBM, supported by ongoing development of HBM4E and HBM5 designs. FORM's SmartMatrix technology remains differentiated in high-speed testing of completed HBM stacks.
FORM’s Systems Segment Sets Revenue RecordSystems revenues surged 63.8% year over year to a record $59.5 million, increasing 22.6% sequentially. Growth was primarily driven by accelerating demand for TRITON photonics systems used in co-packaged optics applications.
FORM now expects TRITON revenues to exceed $30 million in 2026, compared with its initial projection of $10-$20 million. The company is also seeing adoption of its optical probing technologies in near-package optics and pluggable applications.
Management expects continued photonics growth in 2027 and does not anticipate manufacturing capacity becoming a constraint for the Systems business.
FormFactor’s Margins Reflect Operating LeverageNon-GAAP gross margin expanded to 56.5% from 41% in the year-ago quarter and 53.3% in the preceding quarter.
Approximately $10.5 million of the quarterly gross margin benefit came primarily from tariff refunds and favorable Quantum business subcomponent costs. Excluding these nonrecurring items, the underlying gross margin was between 52.5% and 53%.
Non-GAAP operating expenses increased 18% year over year to $64.4 million but declined from $65.7 million sequentially.
Non-GAAP operating income surged to $94.1 million from $28.6 million a year earlier, reflecting higher revenues, improved manufacturing efficiency and spending discipline.
FORM’s Cash Flow and Liquidity StrengthenAs of Sept. 26, 2026, cash, cash equivalents and marketable securities totaled $395.4 million compared with $345.6 million at the end of the preceding quarter.
Cash provided by operating activities increased to $104.3 million from $27 million in the year-ago quarter. Free cash flow reached $64.8 million compared with $19.7 million a year earlier.
FORM lowered its projected 2026 Farmers Branch cash capital expenditures to $100-$110 million from $140-$170 million, reflecting changes in payment timing rather than project scope.
The new manufacturing facility has begun production shipments. Management expects it to reach approximately $400 million in annual probe card production capability by the end of 2027.
FormFactor Offers Upbeat Q4 GuidanceFor the fourth quarter of 2026, FormFactor expects revenues of $285 million, plus or minus $10 million, reflecting continued broad-based demand.
Non-GAAP gross margin is projected at 54%, plus or minus 150 basis points. Non-GAAP earnings are expected to be 95 cents per share, plus or minus 9 cents.
Management anticipates approximately $69 million in non-GAAP operating expenses, including Farmers Branch ramp costs. The expected non-GAAP effective tax rate ranges from 15% to 19%.
At the midpoint of its fourth-quarter outlook, FORM expects 2026 revenues to exceed $1 billion for the first time. The company continues to target a longer-term operating model of $1.6 billion in revenues, 55% gross margin and $5 in non-GAAP earnings per share.
Zacks Rank & Stocks to ConsiderFormFactor currently carries a Zacks Rank #3 (Hold).
Shopify (SHOP - Free Report) , AMETEK (AME - Free Report) and Affirm (AFRM - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Shopify and AMETEK are expected to report their respective quarterly results on Nov. 3, while Affirm will report its on Nov. 5. Shares of Affirm have dropped 1.5%, while Shopify and AMETEK have returned 4.5% and 20.8%, year to date, respectively.
Life Time Group Holdings, Inc. (LTH) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT
Company Participants
Connor Wienberg - Senior Vice President of Treasury & Investor Relations
Erik Weaver - EVP & CFO
Bahram Akradi - Founder, Chairman & CEO
Conference Call Participants
Randal Konik - Jefferies LLC, Research Division
Jake Nebosch
Arpine Kocharyan - UBS Investment Bank, Research Division
Brian Nagel - Oppenheimer & Co. Inc., Research Division
Eric Des Lauriers - Craig-Hallum Capital Group LLC, Research Division
Jonathan Keypour - Goldman Sachs Group, Inc., Research Division
Chris Woronka - Deutsche Bank AG, Research Division
Owen Rickert - Northland Capital Markets, Research Division
Anthony Bonadio - Wells Fargo Securities, LLC, Research Division
Andrew Didora - BofA Securities, Research Division
Molly Baum - Morgan Stanley, Research Division
Logan Reich - RBC Capital Markets, Research Division
Presentation
Operator
Greetings, and welcome to the Life Time Group Holdings Inc. Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Connor Wienberg, Senior Vice President of Treasury and Investor Relations. Thank you. You may begin.
Connor Wienberg
Senior Vice President of Treasury & Investor Relations
Good morning. Thank you for joining us for the Third Quarter 2026 Life Time Group Holdings Earnings Conference Call. With me today are Bahram Akradi, Founder, Chairman and CEO; and Erik Weaver, Executive Vice President and CFO.
During the call, we will make forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from those forward-looking statements made today. There is a comprehensive discussion of risk factors in the company's SEC filings, which you are encouraged to review. The company will also discuss certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, adjusted diluted EPS, net debt to adjusted EBITDA or what we refer to as net debt leverage ratio and free cash
, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended September 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, October 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.
Summary of Financial Results - Third Quarter
Revenues Before
Reimbursements
Net Earnings (Loss)
EBITDAC
Diluted Net Earnings
(Loss) Per Share
Segment
3rd Q 26
3rd Q 25
3rd Q 26
3rd Q 25
3rd Q 26
3rd Q 25
3rd Q 26
3rd Q 25
(in millions)
(in millions)
(in millions)
Brokerage, as reported
$ 3,473
$ 2,922
$ 515
$ 409
$ 1,036
$ 839
$ 1.97
$ 1.57
Net (gains) losses on divestitures
(13)
8
(10)
6
(13)
8
(0.04)
0.02
Acquisition integration
—
—
77
50
103
66
0.30
0.19
Workforce and lease termination
—
—
27
16
35
22
0.10
0.06
Acquisition-related adjustments
—
—
50
47
61
46
0.19
0.18
Amortization of intangible assets
—
—
212
163
—
—
0.82
0.63
Effective income tax rate impact
—
—
—
2
—
—
—
0.01
Levelized foreign currency translation
—
(2)
—
(5)
—
(6)
—
(0.02)
Brokerage, as adjusted
3,460
2,928
871
688
1,222
975
3.34
2.64
Risk Management, as reported
457
402
61
50
101
82
0.24
0.19
Acquisition integration
—
—
—
1
—
2
—
0.01
Workforce and lease termination
—
—
1
3
1
4
—
0.01
Acquisition-related adjustments
—
—
1
—
2
—
0.01
—
Amortization of intangible assets
—
—
5
3
—
—
0.02
0.01
Levelized foreign currency translation
—
5
—
1
—
1
—
—
Risk Management, as adjusted
457
407
68
58
104
89
0.27
0.22
Corporate, as reported
—
1
(170)
(186)
(89)
(109)
(0.66)
(0.72)
Transaction-related costs
—
—
14
36
17
34
0.05
0.14
Legal, tax and benefit plan-related
—
—
(1)
8
(1)
24
—
0.03
Corporate, as adjusted
—
1
(157)
(142)
(73)
(51)
(0.61)
(0.55)
Total Company, as reported
$ 3,930
$ 3,325
$ 406
$ 273
$ 1,048
$ 812
$ 1.55
$ 1.04
Total Company, as adjusted
$ 3,917
$ 3,336
$ 782
$ 604
$ 1,253
$ 1,013
$ 3.00
$ 2.31
Total Brokerage & Risk Management,
as reported
$ 3,930
$ 3,324
$ 576
$ 459
$ 1,137
$ 921
$ 2.21
$ 1.76
Total Brokerage & Risk Management,
as adjusted
$ 3,917
$ 3,335
$ 939
$ 746
$ 1,326
$ 1,064
$ 3.61
$ 2.86
For third quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $76 million of incremental interest income, or approximately 22 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For third quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $477 million, $10 million and $16 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $121 million, $3 million and ($3) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.
1 of 20
"We delivered another excellent quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 18%, including organic growth of 5%. Net earnings grew 25%, and adjusted EBITDAC also grew 25%, marking our 26th consecutive quarter of double-digit adjusted EBITDAC growth, together with another quarter of margin expansion. Strong client retention, excellent new business and continued growth in our clients' businesses, together with our continued success growing through acquisitions, demonstrate the strength of our two-pronged growth strategy and the diversity of our business.
"These results demonstrate the strength and resilience of our diversified model as market conditions evolve. As risk becomes more complex, our clients continue to value our advice, advocacy, analytics and market access. We have a terrific team, a proven strategy and significant opportunities ahead of us, and we remain very confident in our ability to create long-term value for our clients, colleagues and shareholders."
Summary of Financial Results - Nine-Months ended September 30
Revenues Before
Reimbursements
Net Earnings (Loss)
EBITDAC
Diluted Net Earnings
(Loss) Per Share
Segment
9 Mths 26
9 Mths 25
9 Mths 26
9 Mths 25
9 Mths 26
9 Mths 25
9 Mths 26
9 Mths 25
(in millions)
(in millions)
(in millions)
Brokerage, as reported
$ 11,268
$ 9,023
$ 1,878
$ 1,735
$ 3,546
$ 3,082
$ 7.22
$ 6.65
Net (gains) on divestitures
(28)
(4)
(21)
(3)
(28)
(4)
(0.08)
(0.01)
Acquisition integration
—
—
226
113
303
151
0.87
0.43
Workforce and lease termination
—
—
77
58
102
77
0.30
0.22
Acquisition-related adjustments
—
—
138
97
181
126
0.53
0.37
Amortization of intangible assets
—
—
631
445
—
—
2.43
1.71
Effective income tax rate impact
—
—
—
3
—
—
—
0.01
Levelized foreign currency translation
—
56
—
1
—
4
—
0.01
Brokerage, as adjusted
11,240
9,075
2,929
2,449
4,104
3,436
11.27
9.39
Risk Management, as reported
1,338
1,168
168
134
283
229
0.65
0.51
Acquisition integration
—
—
2
3
2
6
0.01
0.02
Workforce and lease termination
—
—
3
9
4
11
0.01
0.03
Acquisition-related adjustments
—
—
7
1
10
1
0.03
0.01
Amortization of intangible assets
—
—
15
12
—
—
0.06
0.04
Levelized foreign currency translation
—
17
—
3
—
3
—
0.01
Risk Management, as adjusted
1,338
1,185
195
162
299
250
0.76
0.62
Corporate, as reported
(5)
1
(493)
(519)
(278)
(342)
(1.90)
(2.00)
Transaction-related costs
—
—
30
80
36
86
0.12
0.31
Legal, tax and benefit plan-related
—
—
16
8
38
24
0.06
0.03
Clean energy-related
5
—
3
—
5
—
0.01
—
Corporate, as adjusted
—
1
(444)
(431)
(199)
(232)
(1.71)
(1.66)
Total Company, as reported
$ 12,601
$ 10,192
$ 1,553
$ 1,350
$ 3,551
$ 2,969
$ 5.97
$ 5.16
Total Company, as adjusted
$ 12,578
$ 10,261
$ 2,680
$ 2,180
$ 4,204
$ 3,454
$ 10.32
$ 8.35
Total Brokerage & Risk Management,
as reported
$ 12,606
$ 10,191
$ 2,046
$ 1,869
$ 3,829
$ 3,311
$ 7.87
$ 7.16
Total Brokerage & Risk Management,
as adjusted
$ 12,578
$ 10,260
$ 3,124
$ 2,611
$ 4,403
$ 3,686
$ 12.03
$ 10.01
For the nine-month period ended September 30, 2025, reported and adjusted amounts for the Brokerage Segment include approximately $363 million of incremental interest income, or approximately $1.05 after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For the nine-month period ended September 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $1,413 million, $37 million and $79 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $362 million, $10 million and ($30) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.
2 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Organic Revenues (Non-GAAP)
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Base Commissions and Fees
Commissions and fees, as reported
$ 3,147
$ 2,573
$ 10,242
$ 7,829
Less commissions and fees from acquisitions, divested operations and other
(838)
(358)
(2,550)
(502)
Levelized foreign currency translation
—
(3)
—
48
Organic base commissions and fees
$ 2,309
$ 2,212
$ 7,692
$ 7,375
Organic change in base commissions and fees
4 %
4 %
Supplemental Revenues
Supplemental revenues, as reported
$ 148
$ 117
$ 469
$ 334
Less supplemental revenues from acquisitions, divested operations and other
(24)
$ (8)
(87)
(8)
Levelized foreign currency translation
—
—
—
2
Organic supplemental revenues
$ 124
$ 109
$ 382
$ 328
Organic change in supplemental revenues
14 %
16 %
Contingent Revenues
Contingent revenues, as reported
$ 74
$ 75
$ 280
$ 241
Less contingent revenues from acquisitions, divested operations and other
(14)
(15)
(57)
(15)
Levelized foreign currency translation
—
—
—
1
Organic contingent revenues
$ 60
$ 60
$ 223
$ 227
Organic change in contingent revenues
— %
(2 %)
Total reported commissions, fees, supplemental revenues and contingent
revenues
$ 3,369
$ 2,765
$ 10,991
$ 8,404
Less commissions, fees, supplemental revenues and contingent revenues from
acquisitions, divested operations and other
(876)
(381)
(2,694)
(525)
Levelized foreign currency translation
—
(3)
—
51
Total organic commissions, fees, supplemental revenues and contingent
revenues
$ 2,493
$ 2,381
$ 8,297
$ 7,930
Total organic change
5 %
5 %
Acquisition Activity
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Number of acquisitions closed *
5
6
19
25
Estimated annualized revenues acquired (in millions)
$ 102
$ 3,036
$ 209
$ 3,390
*
In the third quarter of 2025, 9,000 shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions. No shares were issued in connection with tax-free exchange acquisitions in the third quarter of 2026.
3 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Compensation Expense and Ratios
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Compensation expense, as reported
$ 1,929
$ 1,649
$ 6,157
$ 4,792
Acquisition integration
(61)
(38)
(151)
(86)
Workforce and lease termination related charges
(31)
(16)
(84)
(68)
Acquisition-related adjustments
(61)
(46)
(181)
(126)
Levelized foreign currency translation
—
2
—
39
Compensation expense, as adjusted
$ 1,776
$ 1,551
$ 5,741
$ 4,551
Reported compensation expense ratios using reported revenues on pages 1 and 2
*
55.5 %
56.4 %
54.6 %
53.1 %
Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2
**
51.3 %
53.0 %
51.1 %
50.2 %
*
Reported third quarter 2026 compensation expense ratio was 0.9 pts lower than third quarter 2025. This ratio was primarily impacted by higher integration and acquisition related costs, as well as lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. These items were more than offset by lower employee benefits and the roll-in of AssuredPartners, including the impact of compensation savings related to synergies.
**
Adjusted third quarter 2026 compensation expense ratio was 1.7 pts lower than third quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This was more than offset by the roll-in of AssuredPartners, including the impact of compensation savings related to synergies.
Operating Expense and Ratios
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Operating expense, as reported
$ 508
$ 434
$ 1,565
$ 1,149
Acquisition integration
(42)
(28)
(152)
(65)
Workforce and lease termination related charges
(4)
(6)
(18)
(9)
Levelized foreign currency translation
—
2
—
13
Operating expense, as adjusted
$ 462
$ 402
$ 1,395
$ 1,088
Reported operating expense ratios using reported revenues on pages 1 and 2
*
14.6 %
14.8 %
13.9 %
12.7 %
Adjusted operating expense ratios using adjusted revenues on pages 1 and 2
*
13.4 %
13.7 %
12.4 %
12.0 %
*
Reported third quarter 2026 operating expense ratio was 0.2 pts lower than third quarter 2025. Adjusted third quarter 2026 operating expense ratio was 0.3 pts lower than third quarter 2025. Both ratios were impacted by lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024, which was more than offset by the roll-in of AssuredPartners, including the impact of operating expense savings related to synergies.
4 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Net Earnings to Adjusted EBITDAC (Non-GAAP)
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Net earnings, as reported
$ 515
$ 409
$ 1,878
$ 1,735
Provision for income taxes
176
141
643
600
Depreciation
46
42
140
113
Amortization
284
218
849
596
Change in estimated acquisition earnout payables
15
29
36
38
EBITDAC
1,036
839
3,546
3,082
Net (gains) losses on divestitures
(13)
8
(28)
(4)
Acquisition integration
103
66
303
151
Workforce and lease termination related charges
35
22
102
77
Acquisition-related adjustments
61
46
181
126
Levelized foreign currency translation
—
(6)
—
4
EBITDAC, as adjusted
$ 1,222
$ 975
$ 4,104
$ 3,436
Net earnings margin, as reported using reported revenues on pages 1 and 2
14.8 %
14.0 %
16.7 %
19.2 %
EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2
*
35.3 %
33.3 %
**
36.5 %
37.9 %
*
Third quarter 2025 adjusted EBITDAC includes approximately $76 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, favorably impacted the year-over-year change in third quarter adjusted EBITDAC margin by approximately 0.4%.
**
Adjusted EBITDAC for the nine-month period ended September 30, 2025 includes approximately $363 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year-over-year change in adjusted EBITDAC margin for the nine-month period ended September 30, by approximately 2.2%.
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Organic Revenues (Non-GAAP)
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Fees
$ 444
$ 390
$ 1,297
$ 1,135
International performance bonus fees
4
3
16
6
Fees as reported
448
393
1,313
1,141
Less fees from acquisitions, divestitures and other
(13)
—
(37)
(2)
Levelized foreign currency translation
—
4
—
16
Organic fees
$ 435
$ 397
$ 1,276
$ 1,155
Organic change in fees
10 %
10 %
Acquisition Activity
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Number of acquisitions closed
—
—
2
1
Estimated annualized revenues acquired (in millions)
$ —
$ —
$ 15
$ 38
5 of 20
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Compensation Expense and Ratios
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Compensation expense, as reported
$ 271
$ 244
$ 809
$ 719
Acquisition integration
—
(1)
—
(3)
Workforce and lease termination related charges
(1)
(3)
(4)
(9)
Acquisition-related adjustments
(2)
—
(10)
(1)
Levelized foreign currency translation
—
3
—
12
Compensation expense, as adjusted
$ 268
$ 243
$ 795
$ 718
Reported compensation expense ratios using reported
revenues (before reimbursements) on pages 1 and 2
*
59.3 %
60.6 %
60.5 %
61.6 %
Adjusted compensation expense ratios using adjusted
revenues (before reimbursements) on pages 1 and 2
**
58.6 %
59.7 %
59.4 %
60.6 %
*
Reported third quarter 2026 compensation expense ratio was 1.3 pts lower than third quarter 2025. This ratio was primarily impacted by savings related to headcount controls and employee benefits as well as lesser workforce related charges.
**
Adjusted third quarter 2026 compensation expense ratio was 1.1 pts lower than third quarter 2025. This ratio was primarily impacted by savings related to headcount controls and employee benefits.
Operating Expense and Ratios
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Operating expense, as reported
$ 85
$ 76
$ 246
$ 220
Acquisition integration
—
(1)
(2)
(3)
Workforce and lease termination related charges
—
(1)
—
(2)
Levelized foreign currency translation
—
1
—
2
Operating expense, as adjusted
$ 85
$ 75
$ 244
$ 217
Reported operating expense ratios using reported
revenues (before reimbursements) on pages 1 and 2
*
18.6 %
19.0 %
18.4 %
18.9 %
Adjusted operating expense ratios using adjusted
revenues (before reimbursements) on pages 1 and 2
**
18.6 %
18.4 %
18.2 %
18.3 %
*
Reported third quarter 2026 operating expense ratio was 0.4 pts lower than third quarter 2025. This ratio was primarily impacted by lower integration and workforce related charges, partially offset by additional investments in technology.
**
Adjusted third quarter 2026 operating expense ratio was 0.2 pts higher than third quarter 2025. This ratio was primarily impacted by additional investments in technology.
Net Earnings to Adjusted EBITDAC (Non-GAAP)
3rd Q 26
3rd Q 25
9 Mths 26
9 Mths 25
Net earnings, as reported
$ 61
$ 50
$ 168
$ 134
Provision for income taxes
22
18
61
48
Depreciation
10
10
30
30
Amortization
7
4
21
16
Change in estimated acquisition earnout payables
1
—
3
1
EBITDAC
101
82
283
229
Acquisition integration
—
2
2
6
Workforce and lease termination related charges
1
4
4
11
Acquisition-related adjustments
2
—
10
1
Levelized foreign currency translation
—
1
—
3
EBITDAC, as adjusted
$ 104
$ 89
$ 299
$ 250
Net earnings margin, as reported using reported revenues
(before reimbursements) on pages 1 and 2
13.3 %
12.3 %
12.6 %
11.4 %
EBITDAC margin, as adjusted using adjusted revenues
(before reimbursements) on pages 1 and 2
22.8 %
21.9 %
22.4 %
21.1 %
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Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
3rd Quarter
2026
2025
Pretax
Loss
Income
Tax
Benefit
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Pretax
Loss
Income
Tax
Benefit
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Components of Corporate Segment, as reported
Interest and banking costs
$ (169)
$ 44
$ (125)
$ (162)
$ 42
$ (120)
Clean energy-related
(2)
1
(1)
(2)
1
(1)
Acquisition costs (1)
(22)
3
(19)
(38)
(1)
(39)
Corporate (2)
(66)
41
(25)
(70)
44
(26)
Reported 3rd quarter
(259)
89
(170)
(272)
86
(186)
Adjustments
Transaction-related costs (1)
17
(3)
14
34
2
36
Legal and tax-related (4)
(1)
—
(1)
24
(16)
8
Components of Corporate Segment, as adjusted
Interest and banking costs
(169)
44
(125)
(162)
42
(120)
Clean energy-related
(2)
1
(1)
(2)
1
(1)
Acquisition costs
(5)
—
(5)
(4)
1
(3)
Corporate (2)
(67)
41
(26)
(46)
28
(18)
Adjusted 3rd quarter
$ (243)
$ 86
$ (157)
$ (214)
$ 72
$ (142)
Nine Months
Components of Corporate Segment, as reported
Interest and banking costs
$ (496)
$ 129
$ (367)
$ (480)
$ 125
$ (355)
Clean energy-related
(11)
4
(7)
(6)
2
(4)
Acquisition costs (1)
(50)
8
(42)
(98)
8
(90)
Corporate (2)
(221)
144
(77)
(241)
171
(70)
Reported nine months
(778)
285
(493)
(825)
306
(519)
Adjustments
Clean energy-related (3)
5
(2)
3
—
—
—
Transaction-related costs (1)
36
(6)
30
86
(6)
80
Legal and tax-related (4)
30
(20)
10
24
(16)
8
Benefit plan-related (5)
8
(2)
6
—
—
—
Components of Corporate Segment, as adjusted
Interest and banking costs
(496)
129
(367)
(480)
125
(355)
Clean energy-related
(6)
2
(4)
(6)
2
(4)
Acquisition costs
(14)
2
(12)
(12)
2
(10)
Corporate (2)
(183)
122
(61)
(217)
155
(62)
Adjusted nine months
$ (699)
$ 255
$ (444)
$ (715)
$ 284
$ (431)
(1)
Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.
(2)
Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(9) million in third quarter 2026 and a net unrealized foreign exchange remeasurement gain of $5 million in third quarter 2025. Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(3) million in the nine-month period ended September 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(43) million in the nine-month period ended September 30, 2025.
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(3)
Adjustments in the nine-month period ended September 30, 2026 include the write-down of a clean energy-related investment.
(4)
Adjustments in third quarter 2026 and 2025 and the nine-month periods ended September 30, 2026 and 2025 include costs associated with legal and tax matters.
(5)
Adjustments in the nine-month period ended September 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
Interest, banking costs and debt - At September 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $630 million of borrowings under its line of credit facility. In addition, Gallagher had $228 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.
Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.
Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.
Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate-level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
Income taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rates for the quarters ended September 30, 2026 and 2025 were 21.2% and 21.1%, respectively.
AssuredPartners - In fourth quarter 2024 and first quarter 2025, Gallagher raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion.
Share repurchases - In the third quarter of 2026, Gallagher repurchased approximately 0.4 million shares of its common stock for approximately $100 million. For the nine-month period ended September 30, 2026, Gallagher repurchased approximately 2.7 million shares of its common stock for approximately $580 million.
Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, October 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Information Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.
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Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.
Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.
Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.
Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17 to 20 for a reconciliation of the adjustments made to income taxes.
Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, are each adjusted to exclude the following, as applicable:
9 of 20
Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT-related systems.Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.Workforce-related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.Lease termination-related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.Acquisition-related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, these adjustments may from time to time include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date.Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates.Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment.Legal and tax-related, which represents the impact of adjustments in second quarter 2026 and third quarter 2025 related to costs associated with legal and tax matters.Benefit plan-related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.Adjusted ratios - Adjusted compensation expense and adjusted operating expense ratios are each expense divided by adjusted revenues.
Non-GAAP Earnings Measures
EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains (losses) on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains (losses) on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.10 of 20
Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Because the AssuredPartners acquisition closed in the middle of third quarter 2025 (on August 18, 2025), organic revenue for the three-month and nine-month periods ended September 30, 2026 excludes all AssuredPartners revenues, including revenues earned after the first anniversary of the acquisition, and the comparable 2025 periods likewise exclude AssuredPartners revenues. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.
These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.
Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6, respectively, for the Brokerage and Risk Management segments).
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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
Brokerage Segment
3rd Q Ended
Sept 30, 2026
3rd Q Ended
Sept 30, 2025
9 Mths Ended
Sept 30, 2026
9 Mths Ended
Sept 30, 2025
Commissions
$ 2,371
$ 1,908
$ 7,936
$ 5,965
Fees
776
665
2,306
1,864
Supplemental revenues
148
117
469
334
Contingent revenues
74
75
280
241
Interest income, premium finance revenues and other income
104
157
277
619
Total revenues
3,473
2,922
11,268
9,023
Compensation
1,929
1,649
6,157
4,792
Operating
508
434
1,565
1,149
Depreciation
46
42
140
113
Amortization
284
218
849
596
Change in estimated acquisition earnout payables
15
29
36
38
Expenses
2,782
2,372
8,747
6,688
Earnings before income taxes
691
550
2,521
2,335
Provision for income taxes
176
141
643
600
Net earnings
515
409
1,878
1,735
Net earnings attributable to noncontrolling interests
3
1
4
6
Net earnings attributable to controlling interests
$ 512
$ 408
$ 1,874
$ 1,729
EBITDAC
Net earnings
$ 515
$ 409
$ 1,878
$ 1,735
Provision for income taxes
176
141
643
600
Depreciation
46
42
140
113
Amortization
284
218
849
596
Change in estimated acquisition earnout payables
15
29
36
38
EBITDAC
$ 1,036
$ 839
$ 3,546
$ 3,082
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
Risk Management Segment
3rd Q Ended
Sept 30, 2026
3rd Q Ended
Sept 30, 2025
9 Mths Ended
Sept 30, 2026
9 Mths Ended
Sept 30, 2025
Fees
$ 448
$ 393
$ 1,313
$ 1,141
Interest income and other income
9
9
25
27
Revenues before reimbursements
457
402
1,338
1,168
Reimbursements
46
40
136
122
Total revenues
503
442
1,474
1,290
Compensation
271
244
809
719
Operating
85
76
246
220
Reimbursements
46
40
136
122
Depreciation
10
10
30
30
Amortization
7
4
21
16
Change in estimated acquisition earnout payables
1
—
3
1
Expenses
420
374
1,245
1,108
Earnings before income taxes
83
68
229
182
Provision for income taxes
22
18
61
48
Net earnings
61
50
168
134
Net earnings attributable to noncontrolling interests
—
—
—
—
Net earnings attributable to controlling interests
$ 61
$ 50
$ 168
$ 134
EBITDAC
Net earnings
$ 61
$ 50
$ 168
$ 134
Provision for income taxes
22
18
61
48
Depreciation
10
10
30
30
Amortization
7
4
21
16
Change in estimated acquisition earnout payables
1
—
3
1
EBITDAC
$ 101
$ 82
$ 283
$ 229
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
Corporate Segment
3rd Q Ended
Sept 30, 2026
3rd Q Ended
Sept 30, 2025
9 Mths Ended
Sept 30, 2026
9 Mths Ended
Sept 30, 2025
Other gain (loss)
$ —
$ 1
$ (5)
$ 1
Total revenues
—
1
(5)
1
Compensation
37
39
117
122
Operating
52
71
156
221
Interest
168
161
494
477
Depreciation
2
2
6
6
Expenses
259
273
773
826
Loss before income taxes
(259)
(272)
(778)
(825)
Benefit for income taxes
(89)
(86)
(285)
(306)
Net loss
(170)
(186)
(493)
(519)
Net loss attributable to noncontrolling interests
—
—
—
—
Net loss attributable to controlling interests
$ (170)
$ (186)
$ (493)
$ (519)
EBITDAC
Net loss
$ (170)
$ (186)
$ (493)
$ (519)
Benefit for income taxes
(89)
(86)
(285)
(306)
Interest
168
161
494
477
Depreciation
2
2
6
6
EBITDAC
$ (89)
$ (109)
$ (278)
$ (342)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
14 of 20
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions except per share data)
Total Company
3rd Q Ended
Sept 30, 2026
3rd Q Ended
Sept 30, 2025
9 Mths Ended
Sept 30, 2026
9 Mths Ended
Sept 30, 2025
Commissions
$ 2,371
$ 1,908
$ 7,936
$ 5,965
Fees
1,224
1,058
3,619
3,005
Supplemental revenues
148
117
469
334
Contingent revenues
74
75
280
241
Interest income, premium finance revenues and other income
113
167
297
647
Revenues before reimbursements
3,930
3,325
12,601
10,192
Reimbursements
46
40
136
122
Total revenues
3,976
3,365
12,737
10,314
Compensation
2,237
1,932
7,083
5,633
Operating
645
581
1,967
1,590
Reimbursements
46
40
136
122
Interest
168
161
494
477
Depreciation
58
54
176
149
Amortization
291
222
870
612
Change in estimated acquisition earnout payables
16
29
39
39
Expenses
3,461
3,019
10,765
8,622
Earnings before income taxes
515
346
1,972
1,692
Provision for income taxes
109
73
419
342
Net earnings
406
273
1,553
1,350
Net earnings attributable to noncontrolling interests
3
1
4
6
Net earnings attributable to controlling interests
$ 403
$ 272
$ 1,549
$ 1,344
Diluted net earnings per share
$ 1.55
$ 1.04
$ 5.97
$ 5.16
Dividends declared per share
$ 0.70
$ 0.65
$ 2.10
$ 1.95
EBITDAC
Net earnings
$ 406
$ 273
$ 1,553
$ 1,350
Provision for income taxes
109
73
419
342
Interest
168
161
494
477
Depreciation
58
54
176
149
Amortization
291
222
870
612
Change in estimated acquisition earnout payables
16
29
39
39
EBITDAC
$ 1,048
$ 812
$ 3,551
$ 2,969
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
15 of 20
Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions)
Sept 30, 2026
Dec 31, 2025
Cash and cash equivalents
$ 1,213
$ 1,396
Fiduciary assets (includes fiduciary cash of $7,596 in 2026 and $7,142 in 2025)
34,345
26,899
Accounts receivable, net
5,977
5,175
Other current assets
786
886
Total current assets
42,321
34,356
Fixed assets - net
757
789
Deferred income taxes
45
43
Other noncurrent assets
1,744
1,602
Right-of-use assets
610
598
Goodwill
23,385
22,593
Amortizable intangible assets - net
10,202
10,684
Total assets
$ 79,064
$ 70,665
Fiduciary liabilities
$ 34,345
$ 26,899
Accrued compensation and other current liabilities
3,776
4,017
Deferred revenue - current
839
737
Premium financing debt
228
226
Corporate related borrowings - current
1,008
640
Total current liabilities
40,196
32,519
Corporate related borrowings - noncurrent
11,735
12,104
Deferred revenue - noncurrent
189
155
Lease liabilities - noncurrent
518
515
Other noncurrent liabilities (includes tax credit carryforwards of $615 in 2026 and $713 in 2025)
2,355
2,025
Total liabilities
54,993
47,318
Stockholders' equity:
Common stock - issued and outstanding
256
257
Capital in excess of par value
17,584
17,783
Retained earnings
6,809
5,806
Accumulated other comprehensive loss
(611)
(525)
Total controlling interests stockholders' equity
24,038
23,321
Noncontrolling interests
33
26
Total stockholders' equity
24,071
23,347
Total liabilities and stockholders' equity
$ 79,064
$ 70,665
16 of 20
Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)
OTHER INFORMATION
3rd Q Ended
Sept 30, 2026
3rd Q Ended
Sept 30, 2025
9 Mths Ended
Sept 30, 2026
9 Mths Ended
Sept 30, 2025
Basic weighted average shares outstanding (000s)
256,677
256,618
256,815
255,899
Diluted weighted average shares outstanding (000s)
259,369
260,408
259,325
260,090
Number of common shares outstanding at end of period (000s)
256,415
256,805
Workforce at end of period (includes acquisitions):
Brokerage
57,587
55,722
Risk Management
11,454
10,669
Total Company
74,614
71,059
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)
(Unaudited - in millions except per share data)
Earnings
(Loss)
Before
Income
Taxes
Provision
(Benefit)
for
Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
3rd Q Ended September 30, 2026
Brokerage, as reported
$ 691
$ 176
$ 515
$ 3
$ 512
$ 1.97
Net (gains) on divestitures
(13)
(3)
(10)
—
(10)
(0.04)
Acquisition integration
103
26
77
—
77
0.30
Workforce and lease termination
35
8
27
—
27
0.10
Acquisition-related adjustments
68
18
50
—
50
0.19
Amortization of intangible assets
284
72
212
—
212
0.82
Brokerage, as adjusted
$ 1,168
$ 297
$ 871
$ 3
$ 868
$ 3.34
Risk Management, as reported
$ 83
$ 22
$ 61
$ —
$ 61
$ 0.24
Workforce and lease termination
1
—
1
—
1
—
Acquisition-related adjustments
2
1
1
—
1
0.01
Amortization of intangible assets
7
2
5
—
5
0.02
Risk Management, as adjusted
$ 93
$ 25
$ 68
$ —
$ 68
$ 0.27
Corporate, as reported
$ (259)
$ (89)
$ (170)
$ —
$ (170)
$ (0.66)
Transaction-related costs
17
3
14
—
14
0.05
Legal and tax-related
(1)
—
(1)
—
(1)
—
Corporate, as adjusted
$ (243)
$ (86)
$ (157)
$ —
$ (157)
$ (0.61)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
17 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Earnings
(Loss)
Before
Income
Taxes
Provision
(Benefit)
for
Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
3rd Q Ended September 30, 2025
Brokerage, as reported
$ 550
$ 141
$ 409
$ 1
$ 408
$ 1.57
Net losses on divestitures
8
2
6
—
6
0.02
Acquisition integration
66
16
50
—
50
0.19
Workforce and lease termination
22
6
16
—
16
0.06
Acquisition-related adjustments
63
16
47
—
47
0.18
Amortization of intangible assets
218
55
163
—
163
0.63
Effective income tax impact
—
(2)
2
—
2
0.01
Levelized foreign currency translation
(6)
(1)
(5)
—
(5)
(0.02)
Brokerage, as adjusted
$ 921
$ 233
$ 688
$ 1
$ 687
$ 2.64
Risk Management, as reported
$ 68
$ 18
$ 50
$ —
$ 50
$ 0.19
Acquisition integration
2
1
1
—
1
0.01
Workforce and lease termination
4
1
3
—
3
0.01
Amortization of intangible assets
4
1
3
—
3
0.01
Levelized foreign currency translation
1
—
1
—
1
—
Risk Management, as adjusted
$ 79
$ 21
$ 58
$ —
$ 58
$ 0.22
Corporate, as reported
$ (272)
$ (86)
$ (186)
$ —
$ (186)
$ (0.72)
Transaction-related costs
34
(2)
36
—
36
0.14
Legal and tax-related
24
16
8
—
8
0.03
Corporate, as adjusted
$ (214)
$ (72)
$ (142)
$ —
$ (142)
$ (0.55)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
18 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Earnings
(Loss)
Before
Income
Taxes
Provision
(Benefit)
for
Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
9 Mths Ended September 30, 2026
Brokerage, as reported
$ 2,521
$ 643
$ 1,878
$ 4
$ 1,874
$ 7.22
Net (gains) on divestitures
(28)
(7)
(21)
—
(21)
(0.08)
Acquisition integration
303
77
226
—
226
0.87
Workforce and lease termination
102
25
77
—
77
0.30
Acquisition-related adjustments
187
49
138
—
138
0.53
Amortization of intangible assets
849
218
631
—
631
2.43
Brokerage, as adjusted
$ 3,934
$ 1,005
$ 2,929
$ 4
$ 2,925
$ 11.27
Risk Management, as reported
$ 229
$ 61
$ 168
$ —
$ 168
$ 0.65
Acquisition integration
2
—
2
—
2
0.01
Workforce and lease termination
4
1
3
—
3
0.01
Acquisition-related adjustments
10
3
7
—
7
0.03
Amortization of intangible assets
21
6
15
—
15
0.06
Risk Management, as adjusted
$ 266
$ 71
$ 195
$ —
$ 195
$ 0.76
Corporate, as reported
$ (778)
$ (285)
$ (493)
$ —
$ (493)
$ (1.90)
Transaction-related costs
36
6
30
—
30
0.12
Legal, tax and benefit plan-related
38
22
16
—
16
0.06
Clean energy-related
5
2
3
—
3
0.01
Corporate, as adjusted
$ (699)
$ (255)
$ (444)
$ —
$ (444)
$ (1.71)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
19 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Earnings
(Loss)
Before
Income
Taxes
Provision
(Benefit)
for
Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
9 Mths Ended September 30, 2025
Brokerage, as reported
$ 2,335
$ 600
$ 1,735
$ 6
$ 1,729
$ 6.65
Net (gains) on divestitures
(4)
(1)
(3)
—
(3)
(0.01)
Acquisition integration
151
38
113
—
113
0.43
Workforce and lease termination
77
19
58
—
58
0.22
Acquisition-related adjustments
129
32
97
—
97
0.37
Amortization of intangible assets
596
151
445
—
445
1.71
Effective income tax impact
—
(3)
3
—
3
0.01
Levelized foreign currency translation
1
—
1
—
1
0.01
Brokerage, as adjusted
$ 3,285
$ 836
$ 2,449
$ 6
$ 2,443
$ 9.39
Risk Management, as reported
$ 182
$ 48
$ 134
$ —
$ 134
$ 0.51
Acquisition integration
6
3
3
—
3
0.02
Workforce and lease termination
11
2
9
—
9
0.03
Acquisition-related adjustments
1
—
1
—
1
0.01
Amortization of intangible assets
16
4
12
—
12
0.04
Levelized foreign currency translation
3
—
3
—
3
0.01
Risk Management, as adjusted
$ 219
$ 57
$ 162
$ —
$ 162
$ 0.62
Corporate, as reported
$ (825)
$ (306)
$ (519)
$ —
$ (519)
$ (2.00)
Transaction-related costs
86
6
80
—
80
0.31
Legal and tax-related
24
16
8
—
8
0.03
Corporate, as adjusted
$ (715)
$ (284)
$ (431)
$ —
$ (431)
$ (1.66)
See "Information Regarding Non-GAAP Measures" on page 9 of 20.
Contact:
Sara Walsh
630-285-3593 or [email protected]
Key Takeaways THC's Q3 adjusted EPS jumped 79.5% to $6.64, beating estimates by 44.4%, while revenues rose 6.5% to $5.6B.Hospital EBITDA surged 34.8% to $818M, fueled by higher admissions, pricing strength and disciplined costs.THC raised its 2026 adjusted EPS outlook to $22.05-$23.01 and EBITDA guidance to $5.05-$5.2B. Tenet Healthcare Corporation (THC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $6.64, which surpassed the Zacks Consensus Estimate by 44.4%. The bottom line increased 79.5% year over year.
Net operating revenues advanced 6.5% year over year to $5.6 billion. The top line surpassed the consensus mark by 2.9%.
The strong quarterly results were driven by growth in same-facility revenues and disciplined expense management. Higher patient acuity and favorable service mix supported the Ambulatory segment, while the Hospital segment benefited from higher admissions, continued pricing strength and disciplined expense management. However, an unfavorable payer mix due to lower exchange admissions partly offset the gains.
Tenet Healthcare Corporation Price, Consensus and EPS SurpriseInside THC’s Q3 PerformanceAdjusted net income of $535 million climbed 63.1% year over year.
Adjusted EBITDA increased 23.3% year over year to $1.4 billion, driven by strong same-facility revenue growth and disciplined expense management, partially offset by an unfavorable payer mix due to fewer exchange admissions. Results also included the previously described $147 million favorable net impact. The figure also exceeded our estimate of $1.2 billion. Adjusted EBITDA margin improved 330 basis points year over year to 24.1%.
Salaries, wages and benefits decreased 1.4% year over year to $2.2 billion in the third quarter, while supply costs rose 5.6% and net other operating expenses increased 5.8%.
Q3 Segmental DetailsAmbulatory Care: The segment’s net operating revenues increased 7.5% year over year to $1.4 billion in the quarter, driven by strong growth in consolidated same-facility net patient service revenues, facility acquisitions and expanded service lines. The metric was in line with our estimate.
Adjusted EBITDA increased 9.1% year over year to $537 million, in line with our estimate. Adjusted EBITDA margin increased 60 basis points year over year to 39.2%.
Hospital Operations and Services: The segment’s net operating revenues increased 6.1% year over year to $4.3 billion, driven by higher adjusted admissions and continued pricing strength, partially offset by an unfavorable payer mix due to fewer exchange admissions. The metric beat our model estimate by 5.6%.
Adjusted EBITDA increased 34.8% year over year to $818 million in the quarter, driven by strong same-hospital revenue growth and disciplined expense management. Adjusted EBITDA margin improved 410 basis points year over year to 19.2%.
THC’s Q3 Financial UpdateTenet Healthcare exited the third quarter with cash and cash equivalents of $2.7 billion, which declined from the 2025-end level of $2.9 billion. Total assets of $31.6 billion rose from the 2025-end figure of $29.7 billion.
Long-term debt, net of the current portion, amounted to $13.1 billion, down marginally from the level as of Dec. 31, 2025. The current portion of long-term debt totaled $164 million.
Total shareholders’ equity of $5.4 billion increased from the 2025-end level of $4.2 billion.
THC generated $1.3 billion of net cash from operations, up 21.1% year over year. Free cash flows increased 39.2% year over year to $1.1 billion in the quarter.
THC’s Share Repurchase UpdateTHC continued returning capital to shareholders, repurchasing approximately 970,000 shares for $255 million in the third quarter of 2026. As of Sept. 30, 2026, the company had $1.9 billion remaining under its share repurchase authorization.
THC's 2026 OutlookNet operating revenues are now projected between $22.05 billion and $22.45 billion compared with the previous outlook of $21.9-$22.5 billion and reported 2025 figure of $21.3 billion. Hospital segment revenues are expected between $16.5 billion and $16.8 billion compared with the prior outlook of $16.4-$16.8 billion. The Ambulatory Care segment's revenue guidance remains unchanged at $5.5-$5.7 billion.
Adjusted EBITDA is now expected to be between $5.05 billion and $5.2 billion, up from the prior guidance of $4.83-$5.03 billion and $4.6 billion reported in 2025. The company also raised its adjusted EBITDA margin outlook to 22.9-23.2% from 22.1-22.4%. At the midpoint, the revised guidance implies an improvement over the 2025 margin of 21.4%. Adjusted EPS for 2026 is now anticipated to be in the range of $22.05-$23.01, up from the earlier guidance of $20.30-$21.69.
Net cash provided by operating activities is now expected to be between $3.9 billion and $4.3 billion, while free cash flow is projected to be in the range of $3.19-$3.52 billion. Capital expenditures are estimated to remain between $700 million and $800 million.
Tenet Healthcare currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Medical Companies Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
HCA Healthcare reported third-quarter 2026 adjusted earnings per share of $7.22, which beat the Zacks Consensus Estimate of $6.74. The bottom line advanced 3.7% year over year. Revenues rose 3.6% year over year to $19.8 billion. The top line beat the Zacks Consensus Estimate of $19.4 billion. HCA’s quarterly results benefited from higher same-facility admissions and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
Elevance Health reported third-quarter 2026 adjusted earnings per share of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year. Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%. ELV’s quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
UnitedHealth Group reported third-quarter 2026 adjusted earnings per share of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. Revenues declined 0.4% year over year to $112.7 billion. The top line beat the consensus mark by 1.2%. UNH’s third-quarter results benefited from disciplined medical cost management, pricing discipline and improved operating efficiency. Higher earnings at UnitedHealthcare, Optum Insight and Optum Health supported the quarterly performance. However, declining Medicare Advantage and Medicaid membership, lower Optum Health revenues and reduced prescription volumes at Optum Rx remained concerns.
Key Takeaways ETN's Aerospace segment reached 15.5% of 2025 net sales, positioning it as a major secondary growth driver.Rising air travel, aircraft production, fleet upgrades and defense spending underpin ETN's Aerospace demand.Recurring aftermarket revenues add stability, while more electric and sustainable aircraft offer ETN growth.
Eaton Corporation’s (ETN - Free Report) Aerospace segment boasts significant growth potential and provides diversification beyond its core Electrical business. While rising electricity consumption, data center expansion and grid modernization drive electrical demand, aerospace benefits from distinct long-term trends, including increasing air travel, higher aircraft production, fleet upgrades and growing defense expenditures.
The Aerospace segment provides fuel, hydraulic and pneumatic systems for commercial and military aircraft, alongside electrical power and control solutions added through the Ultra PCS acquisition. Its customer base spans commercial original equipment manufacturers, aftermarket operators and defense markets. The aftermarket business generates recurring revenues from maintenance, repairs and replacement parts, lending stability to the segment’s performance. Moreover, the aviation industry’s transition toward more electric and sustainable aircraft presents additional growth opportunities for Eaton’s advanced technologies and solutions.
Aerospace also strengthens Eaton’s business diversification by reducing its reliance on electrical and industrial markets. Its independent demand drivers could help cushion consolidated results during periods of softer industrial activity or electrical equipment spending. Exposure to both commercial aviation and defense further enhances its growth prospects.
The segment’s contribution to Eaton’s overall revenues has increased over time, reaching 15.5% of total net sales in 2025. Supported by sustained aviation demand, recurring aftermarket revenues and operating leverage, the Aerospace segment is well-positioned to emerge as a significant secondary growth driver for Eaton.
What About ETN’s Peers?Rockwell Automation’s (ROK - Free Report) Software & Control segment contributed 29% of fiscal 2025 revenues. Rockwell integrates IT and OT through its Connected Enterprise portfolio, encompassing automation hardware, control and visualization software, digital twins, simulation, information solutions and network security. Rockwell’s offerings enhance production efficiency, connectivity and operational visibility.
Emerson Electric’s (EMR - Free Report) Software and Systems group contributed 33.7% of third-quarter fiscal 2026 revenues. Emerson’s Control Systems & Software segment optimizes plant efficiency, quality and safety through automated process controls. Emerson’s Test & Measurement segment provides intelligent testing platforms, AI-enabled NI solutions, advanced software and modular hardware to enhance product quality.
ETN Price PerformanceShares of Eaton have gained 24.4% year to date, outperforming the industry.
Image Source: Zacks Investment Research
ETN’s Expensive ValuationEaton’s shares are trading at a premium compared with its industry. The company’s forward 12-month price-to-earnings of 25.07X is higher than its industry’s 22.75X.
Image Source: Zacks Investment Research
Estimate Movement for ETNThe Zacks Consensus Estimate for ETN’s third-quarter 2026 EPS moved 1 cent up while that for the fourth quarter has moved 3 cents north in the past 30 days. The Zacks Consensus Estimate for 2026 EPS has moved 3 cents north, while that for 2027 has moved 19 cents north in the past 30 days.
Trane Technologies plc (TT) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT
Company Participants
Patrick Uotila
David Regnery - Chairman of the Board & CEO
Christopher Kuehn - Executive VP & CFO
Donald Simmons - Executive VP & COO
Conference Call Participants
Andrew Kaplowitz - Citigroup Inc., Research Division
Scott Davis - Melius Research LLC
Julian Mitchell - JPMorgan Chase & Co, Research Division
Amit Mehrotra - UBS Investment Bank, Research Division
Charles Stephen Tusa - Wells Fargo Securities, LLC, Research Division
Tobenna Okwara - Morgan Stanley, Research Division
Joseph Ritchie - Goldman Sachs Group, Inc., Research Division
Andrew Obin - BofA Securities, Research Division
Noah Kaye - Oppenheimer & Co. Inc., Research Division
Nigel Coe - Wolfe Research, LLC
Joseph O'Dea - Vertical Research Partners, LLC
Varun Govindaraj - Bernstein Institutional Services LLC, Research Division
Presentation
Operator
Good morning. Welcome to the Trane Technologies Q3 2026 Earnings Conference Call. My name is Warren, and I will be your operator for the call. The call will begin with in a few moments with the speakers' remarks and the Q&A session. [Operator Instructions] I will now turn the call over to Pat Uotila, Director of Investor Relations. Please go ahead.
Patrick Uotila
Thanks, operator. Good morning, and thank you for joining us for Trane Technologies' Third Quarter 2026 Earnings Conference Call. Our webcast and slide presentation are available at tranetechnologies.com, where a replay will also be archived. Today's discussion includes forward-looking statements. Key risk factors are detailed in our SEC filings. We also use non-GAAP measures. Explanations and reconciliations are in our press release and presentation appendix. Joining me on today's call are Dave Regnery, Chair and CEO; Chris Kuehn, Executive Vice President and CFO; and joining us for Q&A is Donnie Simmons, Executive Vice President and Chief Operating Officer. With that, I'll turn the call over to Dave. Dave?
, /PRNewswire/ -- Cousins Properties (NYSE: CUZ) has released its third quarter 2026 results. Please visit the Investors section of Cousins' website at www.cousins.com to access the Earnings Release and Supplemental Information.
Cousins will hold a conference call at 10:00 a.m. (Eastern Time) on Friday, October 30, 2026 to discuss its results. The phone number for the conference call is (800) 836-8184. A replay of the conference call will be available for seven days at (888) 660-6345, passcode 86153#.
A webcast of the conference call can be accessed on Cousins' website through the "Cousins Properties Third Quarter Conference Call" link in the Investors section.
About Cousins Properties
Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments. For more information, please visit www.cousins.com.
Vulcan Materials Company ( VMC ) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT Company Participants Mark Warren - Vice President of Investor Relations Ronnie Pruitt - CEO & Director Mary Carlisle - Senior VP & CFO Conference Call Participants Trey Grooms - Stephens Inc., Research Division Philip Ng - Jefferies LLC, Research Division Garik Shmois - D.A. Davidson & Co., Research Division Anthony Pettinari - Citigroup Inc., Research Division Kathryn Thompson - Thompson Research Group, LLC Michael Dudas - Vertical Research Partners, LLC Rohit Seth - B.
, /PRNewswire/ -- Schall, Brown & Schwartz LLP ("SBS"), a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Duolingo, Inc. ("Duolingo" or "the Company") (NASDAQ: DUOL) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Shareholders who purchased shares of DUOL during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: May 2, 2025 to February 26, 2026
DEADLINE: December 7, 2026
If you are a shareholder who suffered a loss, click here to participate.
CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. Duolingo added drivers of user friction such as increased ad volume despite knowing this user friction could negative impact Daily Active User ("DAU") growth rates. The Company negatively impacted its user experience with shoddy AI-generated content. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Duolingo, investors suffered damages.
We also encourage you to contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Join the case to recover your losses
WHY SBS? Schall, Brown & Schwartz LLP represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. Bringing together the extensive experience and diverse skillsets of founding partners Brian Schall, Andrew Brown, and David Schwartz, SBS is dedicated to aggressively advocating for every investor.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
Schall, Brown & Schwartz LLP
Brian Schall, Esq.,
Andrew Brown, Esq.,
David Schwartz, Esq.,
www.schallfirm.com
Office: 310-301-3335
[email protected]
The Hanover Insurance Group, Inc. (THG) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT
Company Participants
Oksana Lukasheva - Senior Vice President of Corporate Finance
John "Jack" C. Roche - President, CEO & Director
Richard Lavey - Executive VP & COO
Jeffrey Farber - Executive VP & CFO
Bryan Salvatore - Executive VP & President of Specialty
Conference Call Participants
Michael Phillips - Oppenheimer & Co. Inc., Research Division
Michael Zaremski - BMO Capital Markets Equity Research
Rowland Mayor - RBC Capital Markets, Research Division
Jon Paul Newsome - Piper Sandler & Co., Research Division
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Presentation
Operator
Good day, and welcome to The Hanover Insurance Group's Third Quarter Earnings Conference Call. My name is Ranju Thomas, and I'll be your operator for today's call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Oksana Lukasheva.
Oksana Lukasheva
Senior Vice President of Corporate Finance
Good morning, and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; Dick Lavey, our CEO-elect; and Jeff Farber, our Chief Financial Officer. Additionally, Bryan Salvatore, President of Specialty Lines, will be available to answer your questions after our prepared remarks.
Before I turn the call over to Jack, let me note that our earnings press release, financial supplement, and a complete slide presentation for today's call are available in the Investors section of our website at hanover.com. After the presentation, we will answer questions in the Q&A session. Our prepared remarks and responses to your questions today, other than statements of historical fact, include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.
- $353.2 million in total third quarter revenues, primarily comprised of $253.2 million of U.S. Attruby net product revenue (up approximately $31 million sequentially and $145 million year over year). Loss from operations was $11.6 million, driven by increased revenue and a one-time $75.0 million BEYONTTRA sales milestone from Bayer. Cash, cash equivalents and marketable securities were $1.5 billion as of September 30, 2026, fully funding all three launches and expansion indications
Ares Management Corporation ( ARES ) Q3 2026 Earnings Call October 29, 2026 9:00 AM EDT Company Participants Greg Mason - Partner & Co-Head of Public Markets Investor Relations Michael Arougheti - Co-Founder, Partner, CEO & Director Jarrod Phillips - CFO, Partner & Principal Financial and Accounting Officer Blair Jacobson - Partner & Co-President Conference Call Participants Alexander Blostein - Goldman Sachs Group, Inc., Research Division Steven Chubak - Wolfe Research, LLC Craig Siegenthaler - BofA Securities, Research Division Benjamin Budish - Barclays Bank PLC, Research Division William Katz - TD Cowen, Research Division Patrick Davitt Crispin Love - Piper Sandler & Co., Research Division Bart Dziarski - RBC Capital Markets, Research Division Michael Brown - UBS Investment Bank, Research Division Devin Ryan - Citizens JMP Securities, LLC, Research Division Michael Cyprys - Morgan Stanley, Research Division Brennan Hawken - BMO Capital Markets Equity Research Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division Presentation Operator Welcome to Ares Management Corporation's Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on Thursday, October 29, 2026.
Howmet Aerospace Inc. (HWM) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT
Company Participants
Paul Luther - Vice President of Investor Relations
John Plant - Executive Chairman & CEO
Patrick Winterlich - Executive VP & CFO
Conference Call Participants
Kristine Liwag - Morgan Stanley, Research Division
Seth Seifman - JPMorgan Chase & Co, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
John Godyn - Citigroup Inc., Research Division
Douglas Harned - Bernstein Institutional Services LLC, Research Division
Ronald Epstein - BofA Securities, Research Division
Presentation
Operator
Good day, and welcome to the Q3 2026 Howmet Aerospace Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Paul Luther, Vice President, Investor Relations. Thank you, and over to you, Paul.
Paul Luther
Vice President of Investor Relations
Thank you, Danish. Good morning, and welcome to the Howmet Aerospace Third Quarter 2026 Results Conference Call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Patrick Winterlich, Executive Vice President and Chief Financial Officer. After comments by John and Patrick, we will have a question-and-answer session. I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find the factors that could cause actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent SEC filings.
In today's presentation, references to EBITDA, operating income and EPS mean adjusted EBITDA, adjusted operating income and adjusted EPS. These measures are among the non-GAAP financial measures that we've included in our discussion. Reconciliations to the most directly comparable GAAP measures can be found in today's press release and in the appendix in today's presentation. In addition, unless otherwise noted, all comparisons are on a year-over-year basis.
Extending the 4.5% rise it enjoyed from the close of trading on Tuesday through the end of yesterday's trading session, Howmet Aerospace (HWM +5.51%) stock is climbing higher after the company announced third-quarter 2026 financial results that exceeded expectations. And with the aerospace parts manufacturer providing an auspicious outlook for the last quarter of 2026, investors have found even more reason to bid the stock higher.
As of 3:14 p.m. ET, Howmet shares are up 4.7%.
Image source: Getty Images.
Raising 2026 guidance has a funny way of making investors sit up and take noticeGrowing revenue 29% year over year, Howmet reported sales of $2.7 billion -- better than the $2.58 billion that analysts had anticipated. Similarly, the company reported adjusted earnings per share (EPS) of $1.46, surpassing the consensus among analysts that it would report $1.37.
HWM Howmet Aerospace$205.94+$10.75 (+5.51%)
NYSE · As of 4:00 PM ET 10/29/26
Besides the income statement, investors found cause for celebration in the company's cash flow statement. In Q3 2026, Howmet generated free cash flow of $562 million, a 32.9% of that which it reported during the same period last year.
Updating its 2026 outlook, management now projects revenue of $10.29 billion to $10.31 billion, up from its previous projection of about $10.05 billion. Plus, Howmet expects to generate stronger free cash flow in 2026 than initially thought: $1.95 billion to $2.05 billion, compared with the previous guidance of approximately $1.9 billion.
Howmet's core business centers on manufacturing engine components, fastening systems, and airframe structural components for aerospace, defense, and gas turbine applications.
Is now the time to take flight with Howmet stock?While Howmet stock trades at 42.1 times trailing earnings, it's hard to say that shares are inexpensive, but this industrial stock commands a higher valuation considering the company's consistently strong performance. With Howmet shares down 28.2% over the past three months, investors may want to load up before they start to soar.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Howmet Aerospace. The Motley Fool has a disclosure policy.
MENLO PARK, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today announced that its Board of Directors has declared a quarterly cash dividend of $0.31 per share of common stock to be paid on December 18, 2026 to all common stockholders of record as of December 4, 2026.
Exponent has paid, and expects to continue to pay, quarterly dividends each year in March, June, September, and December. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of Exponent’s Board of Directors.
“Our quarterly cash dividend reflects the consistency of Exponent’s cash generation and our continued commitment to returning capital to shareholders,” commented Dr. Catherine Corrigan, Chief Executive Officer. “Our disciplined approach to capital allocation, supported by a strong balance sheet, allows us to return capital to shareholders while continuing to invest in the people and capabilities that drive long-term growth.”
About Exponent
Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.
Exponent’s consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent’s offices in North America, Asia, and Europe. Exponent’s consultants, laboratories, databases, and computing resources work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward.
Exponent may be reached at (888) 656-EXPO, [email protected], or www.exponent.com.
Forward Looking Statements
This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.
MENLO PARK, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the third quarter of fiscal year 2026 ended October 2, 2026.
“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise,” stated Dr. Catherine Corrigan, Chief Executive Officer. “User research studies continued to be a strong contributor to our growth, as clients move quickly to understand how people interact with technology across a widening range of devices and applications. Reactive work also grew, on top of a strong prior-year quarter, with increased dispute-related and failure analysis demand in the chemical, consumer products and transportation industries.
“These results reflect the durable, long-term trends shaping our business, including rapid technological innovation, increasing complexity, investment in critical infrastructure, and rising societal expectations for safety and reliability. As artificial intelligence and other digital technologies become increasingly embedded into physical systems, the digital and physical worlds are converging. Exponent is differentiated at that convergence, where data and computation meet real-world evidence, and where technology must ultimately work for the user. Our multidisciplinary scientists and engineers bring together deep domain expertise, scientific rigor, and an understanding of complex physical systems to help clients innovate with confidence, solve their most challenging problems, and manage high-consequence risk,” Dr. Corrigan continued.
Third Quarter Financial Results
Total revenues and revenues before reimbursements for the third quarter of 2026 increased 18% to $173.7 million and 12% to $153.1 million, respectively, as compared to $147.1 million and $137.1 million in the third quarter of 2025.
Net income increased to $30.9 million, or $0.64 per diluted share, in the third quarter of 2026, as compared to $28.0 million, or $0.55 per diluted share, in the same period of 2025. The tax benefit associated with share-based awards was immaterial in both the third quarter of 2026 and 2025. Inclusive of the tax benefit, Exponent’s consolidated tax rate was 28.0% in the third quarter of 2026, as compared to 27.4% for the same period in 2025.
EBITDA1 increased to $45.0 million, or 29.4% of revenues before reimbursements, in the third quarter of 2026, as compared to $38.8 million, or 28.3% of revenues before reimbursements in the third quarter of 2025.
Year to Date Financial Results
Total revenues and revenues before reimbursements for the first three quarters of 2026 increased 18% to $511.6 million and 11% to $453.7 million, respectively, as compared to $434.6 million and $407.4 million in the same period of 2025.
Net income increased to $89.9 million, or $1.83 per diluted share, through the first three quarters of 2026, as compared to $81.2 million, or $1.58 per diluted share, in the same period of 2025. During the first three quarters of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million, as compared to $0.4 million during the same period one year ago. Inclusive of the tax impact associated with share-based awards, Exponent’s consolidated tax rate was 28.7% through the first three quarters of 2026, as compared to 28.2% for the same period last year.
EBITDA1 increased to $130.8 million, or 28.8% of revenues before reimbursements, through the first three quarters of 2026, as compared to $113.4 million, or 27.8% of revenues before reimbursements, in the same period of 2025.
Through the first three quarters of 2026, Exponent paid $46.1 million in dividends, repurchased $146.1 million of common stock, and closed the period with $114.7 million in cash and cash equivalents.
In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on December 18, 2026, and reiterated its intent to continue to pay quarterly dividends.
Business Overview
Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 13% in the third quarter and through the first three quarters of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity spanning a broad set of challenges, including health applications, dynamic and unstructured real-world environments, and sensory perception. Dispute-related services involving chemical facilities, consumer products and advanced transportation technologies also drove growth in the quarter, as clients rely on Exponent in critical, high-stakes situations.
Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 3% in the third quarter and 4% through the first three quarters of 2026, as compared to the prior year period. Growth in this segment was driven by increased projects assessing the effects of chemicals on human health and the environment.
Business Outlook
“Our ability to scale our operating model in response to market demand resulted in 77% utilization and expanded profitability during the third quarter of 2026. We are encouraged by the market opportunities across the industries we serve and continue to strategically build upon our diversified portfolio of talent and capabilities,” commented Eric Anderson, Chief Financial Officer. “As we close out 2026, we are raising our full-year revenue and margin guidance, reflecting the strength of our year-to-date performance and our outlook for the remainder of the year. Looking ahead, we remain confident in Exponent’s long-term growth trajectory and our ability to capitalize on the strong demand for our differentiated expertise.”
For the fourth quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:
Revenues before reimbursements to grow 8% to 10%; and,EBITDA1 to be 26.3% to 26.8% of revenues before reimbursements. For the full fiscal year 2026 as compared to fiscal year 2025, Exponent anticipates:
Revenues before reimbursements to grow 10% to 11%; and,EBITDA1 to be 28.0% to 28.3% of revenues before reimbursements. “Rapid innovation continues to reshape industries as companies race to make physical products more intelligent, while expectations for safety, reliability, and performance continue to rise. Exponent is built for this moment. We help clients navigate these increasingly complex challenges, whether validating AI-enabled systems, strengthening critical infrastructure, or understanding how people interact with the technologies around them. Across these areas, our integrated platform brings the scientific and engineering expertise needed to deliver explainability, clarity, and trust. This distinctive ecosystem, together with strong long-term growth drivers, positions Exponent to deliver sustainable value for our clients and shareholders,” concluded Dr. Corrigan.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, Thursday, October 29, 2026, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (855) 669-9658 or (412) 317-0088 and entering passcode 5957331#.
Use of non-GAAP Financial Measures 1
EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.
About Exponent
Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.
Exponent’s consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent’s offices in North America, Asia, and Europe. Exponent’s consultants, laboratories, databases, and computing resources work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward.
Exponent may be reached at (888) 656-EXPO, [email protected], or www.exponent.com.
Forward Looking Statements
This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.
Source: Exponent, Inc.
EXPONENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the Quarters Ended October 2, 2026 and October 3, 2025 (unaudited) (in thousands, except per share data) Quarter Ended Nine Months Ended October 2, October 3, October 2, October 3, 2026
2025
2026
2025
Revenues Revenues before reimbursements $153,063 $137,073 $453,740 $407,378 Reimbursements 20,670 10,047 57,908 27,211 Revenues 173,733 147,120 511,648 434,589 Operating expenses Compensation and related expenses 90,038 87,726 282,018 261,103 Other operating expenses 13,814 12,655 39,504 36,822 Reimbursable expenses 20,670 10,047 57,908 27,211 General and administrative expenses 7,334 7,654 20,940 18,806 131,856 118,082 400,370 343,942 Operating income 41,877 29,038 111,278 90,647 Other income (expense), net Interest income, net 668 2,312 3,102 7,370 Miscellaneous income (expense), net 448 7,267 11,718 15,175 1,116 9,579 14,820 22,545 Income before income taxes 42,993 38,617 126,098 113,192 Income taxes 12,050 10,573 36,191 31,945 Net income $30,943 $28,044 $89,907 $81,247 Net income per share: Basic $0.64 $0.55 $1.84 $1.59 Diluted $0.64 $0.55 $1.83 $1.58 Shares used in per share computations: Basic 48,131 50,872 48,891 51,113 Diluted 48,422 51,179 49,195 51,454 EXPONENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS October 2, 2026 and January 2, 2026 (unaudited) (in thousands) October 2, January 2, 2026 2026 Assets Current assets:
Cash and cash equivalents $114,689 $221,930 Accounts receivable, net 209,604 181,507 Prepaid expenses and other assets 28,976 24,143 Total current assets 353,269 427,580 Property, equipment and leasehold improvements, net 69,900 71,981 Operating lease right-of-use asset 68,208 73,376 Goodwill
8,607 8,607 Other assets
193,092 195,975 $693,076 $777,519 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $34,733 $30,942 Accrued payroll and employee benefits 121,993 121,302 Deferred revenues 18,503 18,868 Operating lease liability 6,533 6,890 Total current liabilities 181,762 178,002 Other liabilities
128,822 133,232 Operating lease liability 74,606 75,944 Total liabilities 385,190 387,178 Stockholders' equity: Common stock 66 66 Additional paid-in capital 392,784 369,747 Accumulated other comprehensive loss (2,496) (2,290) Retained earnings 712,318 668,423 Treasury stock, at cost (794,786) (645,605) Total stockholders' equity 307,886 390,341 $693,076 $777,519 EXPONENT, INC.EBITDA and EBITDAS (1)For the Quarters Ended October 2, 2026 and October 3, 2025(unaudited)(in thousands) Quarter Ended Nine Months Ended October 2, October 3, October 2, October 3, 2026 2025 2026 2025 Net Income $30,943 $28,044 $89,907 $81,247 Add back (subtract): Income taxes 12,050 10,573 36,191 31,945 Interest income, net (668) (2,312) (3,102) (7,370) Depreciation and amortization 2,651 2,532 7,844 7,544 EBITDA (1) 44,976 38,837 130,840 113,366 Stock-based compensation 6,694 5,341 22,432 18,767 EBITDAS (1) $51,670 $44,178 $153,272 $132,133 (1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Key Takeaways PPC reported earnings of 49 cents per share, beating estimates of 48 cents, while sales fell 2.2%.PPC faced U.S. chicken oversupply, with adjusted operating income plunging 73.8% amid lower commodity prices.PPC's U.S. Prepared Foods volumes rose more than 15%, and Just Bare retail sales increased more than 25%. Pilgrim’s Pride Corporation (PPC - Free Report) reported third-quarter 2026 results, wherein both the top and bottom lines declined year over year but surpassed the Zacks Consensus Estimate.
PPC posted adjusted earnings of 49 cents per share, down 67.8% year over year but ahead of the consensus estimate of 48 cents. Net sales declined 2.2% year over year to $4,653.2 million but exceeded the consensus estimate of $4,600 million.
Increased U.S. chicken supplies weighed on commodity cutout values and pressured profitability. However, U.S. Prepared Foods volumes rose more than 15% year over year, reflecting continued momentum in the company's differentiated product portfolio.
PPC's Q3 Profitability and Cost PerformanceGross profit declined 49.4% year over year to $333.7 million from $659.4 million. Cost of sales increased 5.4% to $4,319.5 million from $4,100 million. Consequently, the gross margin contracted to 7.2% from 13.9% in the prior-year quarter.
Selling, general and administrative expenses decreased 13.8% year over year to $142.2 million from $165 million. Operating income fell 61.1% to $191.5 million from $492.6 million, while the GAAP operating margin narrowed to 4.1%.
Adjusted EBITDA declined 50% year over year to $316.3 million from $633.1 million. The adjusted EBITDA margin contracted 650 basis points to 6.8% from 13.3%, reflecting lower profitability across the company's three geographic segments.
Pilgrim's U.S. Business Faces Commodity PressureU.S. sales declined 5.5% year over year to $2,680.1 million from $2,836.6 million. Adjusted operating income decreased 73.8% to $105.8 million from $403.7 million. The adjusted operating margin contracted to 3.9% from 14.2% in the year-ago quarter.
U.S. Fresh experienced pressure from increased chicken supplies, with USDA data cited by the company indicating a 2.2% year-over-year supply increase that outpaced demand growth. Lower commodity cutout values weighed on performance, although volumes remained stable sequentially.
Case Ready maintained its retail presence through expanded distribution and promotional investments with key customers. Small Bird demand remained firm, supported by consumer interest in boneless chicken offerings at leading quick-service restaurants. Improvements in live operations and yield efficiencies helped partly offset lower commodity cutout values.
PPC's Europe Operations Navigate Cost HeadwindsEurope sales declined 1.3% year over year to $1,374.0 million from $1,392.5 million. Adjusted operating income fell 11% to $63.4 million from $71.3 million. The adjusted operating margin narrowed to 4.6% from 5.1% in the prior-year quarter.
Consumer demand for affordable poultry and convenient meals remained supportive, although reported regional sales declined year over year. Branded products, including Fridge Raiders and Rollover, continued to grow, with additional promotional activities and distribution providing further opportunities.
However, excess pork imports from European countries and sustained increases in input costs pressured margins. Pilgrim's continued investing in its poultry supply chain, while the approval process for the pending Walkers Deli & Sausage acquisition progressed, with closing anticipated in early 2027.
Pilgrim's Mexico Sales Grow Despite Margin PressureMexico sales increased 13% year over year to $599.1 million from $530.2 million. However, adjusted operating income decreased 42.8% to $22.3 million from $39 million. The adjusted operating margin narrowed to 3.7% from 7.4% in the year-ago quarter.
Profitability improved sequentially as live commodity market conditions strengthened, despite substantial protein availability across Mexico. Retail volumes with key customers increased more than 8% year over year.
Branded fresh offerings remained a growth driver, with retail sales increasing more than 40%. Just Bare retail fresh volumes more than doubled, while Pilgrim's and Alamesa prepared foods brands registered double-digit growth. The ramp-up of operations in the Merida region and Southern Peninsula remained on schedule.
PPC's Prepared Foods Investments Support GrowthU.S. Prepared Foods delivered higher sales and margins compared with the prior-year period. Just Bare retail sales increased more than 25%, while its volume market share in the frozen fully cooked chicken category expanded more than 300 basis points year over year.
Product innovation also supported the business, including the introduction of Pilgrim's Flamin' Hot offerings across retail and foodservice channels.
Construction of the new prepared foods facility in Walker County, GA, remained on track, with commissioning expected in the second half of 2027. The company also continued investing in its Ellijay, GA, facility to expand its presence in the small bird deboning segment.
Pilgrim's Liquidity and Financial PositionPilgrim's ended the quarter with cash and cash equivalents of $935.8 million, up from $640.2 million at the end of 2025. Long-term debt, excluding current maturities, stood at $3,404.7 million, while total stockholders' equity was $3,887.9 million.
Cash provided by operating activities totaled $684.2 million during the first nine months of 2026, compared with $1,080.4 million in the prior-year period. Capital expenditures reached $682.1 million compared with $441.1 million a year earlier.
The company's net leverage ratio stood at 1.76 times adjusted EBITDA, below its targeted range of 2-3 times. Management remained focused on improving operating efficiency, diversifying its product portfolio and investing in capacity to support future growth.
This Zacks Rank #5 (Strong Sell) stock has plunged 20.3% in the past six months compared with the industry’s 15.6% decline.
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Stocks to ConsiderSome better-ranked stocks have been discussed below:
Lamb Weston Holdings, Inc. (LW - Free Report) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. LW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates a decline of 0.5%, and the same for earnings indicates growth of 9.4% from the prior-year levels. Lamb Weston delivered a trailing four-quarter earnings surprise of 22.1%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 11.5% and 46%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 121.7%, on average.
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 34.2%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Pilgrim's Pride Corporation ( PPC ) Q3 2026 Earnings Call October 29, 2026 9:00 AM EDT Company Participants Andrew Rojeski - Head of Strategy, Investor Relations & Net-Zero Programs Fabio Sandri - President & CEO Matthew Galvanoni - CFO & Chief Accounting Officer Presentation Operator Good morning, and welcome to the Third Quarter of 2026 Pilgrim's Pride Earnings Conference Call and webcast. [Operator Instructions] At the company's request, this call is being recorded.
Seize the Opportunity: Beyond Meat’s New Steak Could Spark GrowthPilgrim's Pride NASDAQ: PPC reported third-quarter 2026 adjusted EBITDA of $316.3 million, down from $633.1 million a year earlier, as lower U.S. commodity chicken prices, higher grain costs and uneven market conditions weighed on results. Adjusted EBITDA margin declined to 6.8% from 13.3% in the prior-year period.
Net revenue totaled $4.65 billion for the quarter ended Sept. 27, compared with $4.76 billion a year earlier. President and Chief Executive Officer Fabio Sandri said chicken's affordability continued to support consumer demand across the company's markets, while Pilgrim's Pride continued investing in higher-value products, prepared foods capacity and operational improvements.
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U.S. pricing pressure offsets steady chicken demand Beyond Meat Forecast: Is There Any Hope Left for This Stock?Sandri said U.S. chicken volumes remained consistent with the prior year despite what he described as near-record volumes in the previous two years. However, supply increased faster than demand across retail and food service, creating uneven market fundamentals.
The USDA reported U.S. ready-to-cook chicken production rose 2.2% from the prior-year period during the quarter. Pilgrim's Pride said freezer inventories nevertheless declined 5% year over year, while boneless breast inventories fell nearly 8%.
Analysts Agree, This Could Be Tyson Stock’s Comeback YearChicken retail volume, including fresh and frozen products, increased 1.4% from a year earlier, according to the company. Boneless breast volume rose more than 2%, while boneless dark meat volume grew nearly 10%. Food-service chicken volumes increased 0.8%, with growth concentrated in quick-service restaurants and convenience channels as lower-income consumers sought value.
Chief Financial Officer Matt Galvanoni said U.S. revenue declined 5.5% year over year, reflecting lower commodity pricing and the impact of supplying more internally produced chicken to the company's prepared foods operations following investments completed earlier this year.
U.S. adjusted EBITDA was $185.2 million, compared with $479.1 million in the third quarter of 2025, while segment adjusted EBITDA margin fell to 6.9% from 16.9%. Improved yields and live-production performance partly offset lower chicken pricing and higher grain costs, Galvanoni said.
Prepared foods growth and capacity investments continue Prepared foods was a relative bright spot, with volumes increasing more than 15% from a year earlier. Pilgrim's Pride's retail-branded offerings grew more than 20%, while the Just Bare brand gained more than 300 basis points of retail dollar share in the frozen fully cooked category, Sandri said.
The company also cited strong early acceptance for its Flamin' Hot Chicken offering, which was launched in select retail and food-service locations. Sandri said Pilgrim's Pride secured additional customer commitments for the product across channels.
Construction of the company's prepared foods facility in Walker County, Georgia, remained on schedule, with commissioning expected early in the second half of 2027. Pilgrim's Pride also completed an expansion in Ellijay, Georgia, intended to support customer growth in small boneless chicken products.
Galvanoni said prepared foods profitability nearly doubled from the third quarter of 2025, supported by volume growth and the company's investments in the business.
Europe and Mexico face distinct market challenges European adjusted EBITDA totaled €102 million, down from €110.4 million a year earlier, while the segment's adjusted EBITDA margin was 7.4%, compared with 7.9% in the prior-year quarter. Revenue in Europe declined 1% year over year.
The European business benefited from poultry and meals performance, according to Galvanoni, but those gains were partly offset by pressure on pork margins. The company cited increased pork imports into the U.K., production costs associated with the Middle East conflict and weaker food-service traffic.
Sandri said the company's meals lineup produced double-digit sales and volume growth through targeted promotions. Its Fridge Raiders and Rollover brands also increased volume. In contrast, Richmond sausage growth was challenged by promotional activity in premium private-label products and low imported-meat prices.
Pilgrim's Pride expects to complete its acquisition of Walkers Deli & Sausage Company in early 2027. Sandri said the transaction would support integration of the company's high-welfare pork value chain into the premium sausage segment.
Mexico revenue increased 13% year over year, driven by higher sales volumes, partly offset by lower market prices. Adjusted EBITDA in the country fell to $29.1 million from $43.7 million, and margin declined to 4.9% from 8.2%.
The company said Mexico's fresh retail-branded offerings grew more than 40% in volume, while Just Bare volume more than doubled. Still, comparable results were affected by favorable bird-growing conditions that increased live-market supply, as well as broad availability of competing proteins at low prices.
Liquidity, capital spending and outlook Pilgrim's Pride completed a €500 million bond offering in September and ended the quarter with more than $2.1 billion of total cash and available credit. Net debt was less than $2.5 billion, and leverage was 1.76 times last-12-month adjusted EBITDA, below the company's stated target range of two to three times.
Third-quarter capital expenditures totaled $217 million, up $35 million from a year earlier. The company expects full-year capital spending of about $875 million. Pilgrim's Pride expects a full-year effective tax rate of approximately 26%. Excluding a year-to-date loss on debt extinguishment, the company expects full-year net interest expense of approximately $130 million. Sandri said Pilgrim's Pride will continue to focus on promotional support, consumer-led innovation, efficiency initiatives and investments intended to reduce portfolio volatility. The company also pointed to USDA forecasts for slower chicken-production growth in 2027, with chicken output expected to increase 1.2% after an estimated 3.3% rise in 2026.
About Pilgrim's Pride (NASDAQ:PPC)Pilgrim's Pride Corporation is a food company that produces, processes and distributes poultry and prepared foods. Its product portfolio includes fresh, frozen and ready-to-eat chicken products, as well as foodservice, retail and convenience offerings sold under brands such as Pilgrim's, Just Bare, Gold'n Plump and Del Dia.
Founded in 1946, the company has grown from a regional poultry business into an international food producer. Pilgrim's Pride serves grocery retailers, restaurants, foodservice distributors and other commercial customers across the United States, Mexico and the United Kingdom and Europe.
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NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (NASDAQ: NFE) today announced that it has agreed to lease ten mobile turbines that can generate up to 300 megawatts of power to a US-based investment-grade company. The lease is for an initial period of five years. The turbines are expected to be delivered in stages beginning in the fourth quarter of 2026 and finalized in the first quarter of 2027. The transaction is expected to be accretive to NFE's earnings and enhance its liquidity profile.
WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of The Cooper Companies, Inc. (NASDAQ: COO) resulting from allegations that Cooper Companies may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Cooper Companies securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/cases/the-cooper-companies-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
WHAT IS THIS ABOUT: On September 10, 2026, The Motley Fool published an article entitled “Why is Cooper Companies Stock Down 15% Today?”. The article stated that Cooper Companies stock fell “after the company’s earnings report disappointed Wall Street with weak guidance and a decision to not sell Cooper Surgical.”
On this news, Cooper Companies’ stock fell 14.6% on September 10, 2026.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
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Landstar System is reaffirmed as a 'Sell' due to valuation concerns and macroeconomic headwinds despite strong Q3 revenue growth. LSTR's Q3 revenue rose 25.4% year over year to $1.52 billion, with truck revenue per load up 25% and net profit boosted by one-time factors. Profitability gains are partly due to non-recurring items; adjusted EPS growth is more modest, and operating cash flow declined.
Key Takeaways CHRW's Q3 earnings rose 28.6% to $1.80 per share, while revenues surged 29.5% to $5.36 billion.Higher freight pricing, Lean AI productivity gains and NAST volume growth helped lift operating margins.CHRW reaffirmed its 2026 profit outlook, expects $300 million in annual synergies from the proposed RXO deal. C.H. Robinson Worldwide, Inc. (CHRW - Free Report) reported impressive third-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly adjusted earnings of $1.80 per share increased 28.6% year over year and beat the Zacks Consensus Estimate of $1.72 by 4.7%. Revenues climbed 29.5% year over year to $5.36 billion, surpassing the consensus mark of $4.96 billion by 8.1%. Higher transportation pricing, continued market share gains and productivity improvements fueled by Lean AI supported growth. North American Surface Transportation (“NAST”) volumes increased 3.5%, outperforming the Cass Freight Shipment Index for the 14th consecutive quarter.
CHRW Sees Higher Operating Profits Despite Cost RiseAdjusted gross profits increased 14.5% year over year to $808.43 million, primarily driven by higher adjusted gross profit per transaction in truckload, ocean, air and less-than-truckload (LTL) services, alongside increased truckload and LTL volumes.
Adjusted income from operations climbed 26.1% year over year to $290.75 million. Adjusted operating margin, excluding specified items, expanded 330 basis points to 36%.
Operating expenses increased 10.6% year over year to $536.6 million. Personnel expenses rose 3.1% year over year to $360.3 million, primarily due to higher incentive compensation, partially offset by cost optimization and productivity improvements. Average employee headcount declined 10.4%.
Other selling, general and administrative expenses increased 29.7% year over year to $176.3 million, mainly due to higher claims expenses and an impairment charge related to the company's Kansas City regional center lease.
C.H. Robinson's NAST Segment Extends Market GainsNAST revenues jumped 29.1% year over year to $3.83 billion, driven by higher truckload and LTL pricing and volumes. Adjusted gross profits increased 16.6% to $517.86 million.
Truckload adjusted gross profits advanced 20.7% year over year, supported by a 17% increase in adjusted gross profit per shipment and 3.5% volume growth. Customer truckload linehaul rates per mile rose 31.5%, while corresponding costs increased 33.5%.
LTL adjusted gross profits increased 8%, reflecting a 4% improvement in adjusted gross profit per order and 3.5% volume growth.
NAST income from operations rose 17.9% year over year to $203.9 million. Adjusted operating margin, excluding specified items, expanded 110 basis points to 40.3%, supported by disciplined revenue management and productivity improvements.
CHRW's Global Forwarding Business Gains MomentumGlobal Forwarding revenues surged 46.1% year over year to $1.15 billion, primarily driven by higher ocean and air freight pricing. Adjusted gross profits increased 15.4% to $221.24 million.
Ocean adjusted gross profits grew 23.2% year over year, supported by a 20.5% increase in adjusted gross profit per shipment and 2% shipment growth. Air adjusted gross profits also climbed 23.2%, benefiting from a 28.5% increase in adjusted gross profit per metric ton, partially offset by a 4% volume decline.
Customs adjusted gross profits declined 12.9% year over year, reflecting lower profitability per transaction.
Global Forwarding income from operations rose 63.3% year over year to $80.05 million. Adjusted operating margin, excluding specified items, expanded 660 basis points to 36.6%, aided by cost optimization and lower restructuring charges.
C.H. Robinson's Other Businesses Post Mixed ResultsRevenues from All Other and Corporate declined 1.3% year over year to $379.79 million. Adjusted gross profits decreased 1.2% to $69.34 million.
Robinson Fresh adjusted gross profits fell 5.1% year over year to $38.13 million due to margin compression from higher fuel costs, partially offset by increased foodservice customer volumes. Managed Solutions adjusted gross profits grew 4.1% to $31.21 million, benefiting from increased freight under management.
CHRW's Cash Flow Declines Amid Higher Freight RatesCash generated from operations decreased to $124.1 million from $275.4 million in the year-ago quarter. The decline primarily reflected unfavorable working capital changes and higher transportation rates.
CHRW returned $289.1 million to shareholders, including $214.3 million through share repurchases and $74.8 million in dividends. Capital expenditures totaled $17.5 million.
The company exited September with cash and cash equivalents of $193.13 million compared with $160.87 million at the end of December 2025. Long-term debt stood at $1.44 billion.
C.H. Robinson Maintains 2026 Targets, Eyes RXO DealManagement expects 2026 capital expenditures of $65-$75 million and a full-year effective tax rate of 18-20%.
The company remains confident in achieving adjusted operating income of approximately $964 million to $1.04 billion in 2026, excluding restructuring and other charges. Its assumptions include market volume growth ranging from negative 3% to positive 1%, continued market outperformance and productivity gains.
C.H. Robinson also highlighted its proposed $5.8 billion acquisition of RXO, expected to close in the first half of 2027. The transaction is projected to generate approximately $300 million in net annual run-rate cost synergies and become accretive to adjusted earnings per share within nine months of closing.
Currently, CHRW has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.
Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile or TRASM, 15%, while premium and diversified revenue streams continued to expand.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%.
Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%. Stronger pricing, an 8% increase in Intermodal loads and higher brokerage volumes supported growth. However, elevated driver-related expenses, fuel costs and insurance claims pressured profitability.
United Airlines Holdings, Inc. (UAL - Free Report) reported third-quarter 2026 adjusted earnings of $2.54 per share, down 8.6% year over year and below the Zacks Consensus Estimate of $2.60 by 2.3%. Higher fuel expenses weighed on profitability despite strong revenue growth.
Operating revenues rose 17.4% to $17.88 billion but missed the consensus mark of $17.91 billion by 0.2%. A 15.9% increase in total revenue per available seat mile or TRASM, supported the top line, driven by strength across premium, loyalty and contracted business revenues.
WILMINGTON, Mass., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, today announced it will release fourth quarter and fiscal year 2026 financial results after the market close on Monday, November 23, 2026. The press release will also be available on the Symbotic Investor Relations website: www.ir.symbotic.com. The company will host a live webcast to discuss its financial results for the quarter and fiscal year at 5:00 p.m. ET on the same date.
Symbotic said on Thursday it had expanded its agreement with Walmart, with the retailer committing about $6 billion over several years to deploy additional supply-chain automation technology across its distribution network.
KALISPELL, Mont., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (the “Company”) (NYSE: GBCI) announced today that its Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to $200 million of its outstanding common stock through December 31, 2027.
Repurchases of shares under the program may be made in the open market, in block trades, or in privately negotiated transactions, subject to requirements of applicable federal securities laws. The timing, frequency, and quantity of share repurchases will be at the discretion of the Company’s senior management. The approved repurchase program does not require that any minimum number of shares be repurchased.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is the parent company for Glacier Bank and its bank divisions: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Guaranty Bank & Trust (Mount Pleasant, TX), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "estimate," "anticipate," "expect," "will," and similar references to future periods. All statements other than statements of historical fact are forward-looking statements for purposes of this release. Such statements are based on management's current expectations, estimates and projections about the Company's business. These statements are not guarantees of future performance and involve numerous risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from those contained in forward-looking statements due to many factors, including, without limitation, market and other conditions and other factors described in our other filings with the Securities and Exchange Commission (the "SEC") from time to time. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management's current estimates, projections, expectations and beliefs. The Company undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. For more information, see the risk factors described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.
Visit the Company’s website at http://www.glacierbancorp.com
Twilio Inc (NYSE:TWLO) reported financial results for the third quarter after the closing bell on Thursday. Here's a look at the key details from the report.
Twilio (TWLO -4.68%) grew organic revenue 16% in the third quarter, but it expects that pace to slow to 11% to 12% in the fourth. Shares fell about 14% in early after-hours trading. The quarter showed Twilio can now turn growth into real profit, yet the outlook calls for both growth and operating profit to step down at year-end, and the release doesn't say why.
Key NumbersRevenue: about $1.56 billion, up 20% from a year ago.Dollar-based net expansion rate: 114%, up from 109% a year ago.GAAP operating margin: 10%, up from 3% a year ago.Free cash flow: about $370 million, up from about $248 million a year ago.What It MeansExisting customers drove the gains. Twilio charges by use, so when customers send more texts and calls, revenue rises without extra sales effort. The expansion rate tracks exactly that: how much more the same accounts spent than they did a year earlier. Carrier fees padded the top line, though, since about $53 million came from new carrier fees that Twilio passes along at cost, which adds revenue but no profit.
TWLO Twilio$241.90-$11.87 (-4.68%)
NYSE · As of 4:00 PM ET 10/29/26
The profit jump came from cost control: operating costs rose less than 4%, so most of the new gross profit fell straight to the bottom line.
The outlook is the weak spot. Twilio guided fourth-quarter adjusted operating income to $300 million to $310 million, below the third quarter's level even as revenue keeps rising. The raised full-year forecast locks in the strong third quarter, but it doesn't extend it.
What to Watch NextTrack whether fourth-quarter organic growth lands at 11% to 12% and whether management explains what is slowing. Also watch whether the expansion rate holds above 110%.
David Kretzmann has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Twilio. The Motley Fool has a disclosure policy.
Forget Chips: These 3 Stocks Are Building the AI Data Center BoomSterling Infrastructure NASDAQ: STRL reported sharply higher third-quarter results, fueled by demand for data center, semiconductor and other mission-critical projects, while management raised its full-year 2026 financial outlook.
Adjusted diluted earnings per share rose 118% year over year to $7.58, Chief Executive Officer Joe Cutillo said on the company’s third-quarter earnings call. Revenue increased 127%, while adjusted EBITDA more than doubled. The company’s total scoped work—comprising signed backlog, unsigned awards and future project phases in design—approached $8 billion, up about 90% from a year earlier.
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3 Infrastructure Stocks Fueling the Data Center Building BoomCutillo said the company sees a multiyear U.S. investment cycle extending beyond data centers to semiconductors, advanced manufacturing and energy infrastructure. He said the projects Sterling is already serving encompass campuses with hundreds or thousands of acres, supported by land, permits and power commitments, and that the development potential beyond currently scoped work represents more than five years of additional activity.
E-Infrastructure Drives Growth E-Infrastructure Solutions revenue increased 212% in the quarter, led by data center and semiconductor campus activity. Chief Operating Officer Dan Govin said site-development operations more than doubled revenue organically, with growth across the company’s geographies.
3 Small Caps Drawing Insider and Institutional SupportIn the Southeast, projects are expanding in acreage, phases and complexity, Govin said. The company also remains ahead of schedule on a large semiconductor campus project in the Northeast. In the Rocky Mountain region, recently awarded large projects supported growth, and Sterling has been redeploying Transportation Solutions resources toward E-Infrastructure work.
Texas is expected to become a meaningful growth driver over the next several years, according to management. Cutillo said Sterling has more opportunities in Texas than it currently has capacity to serve, and the company is evaluating ways to add labor and operational capacity.
Electrical contractor CEC generated $426 million in quarterly revenue, more than quadrupling its pro forma full-quarter revenue in the prior-year period. Govin said accelerated activity on hyperscaler and large co-location projects drove the increase. Management now expects CEC’s full-year revenue could exceed $1 billion.
E-Infrastructure adjusted operating income rose 171%, while adjusted operating margin was 23%. The segment’s margin declined from a year earlier because CEC represented roughly one-third of segment revenue, compared with 10% in the prior-year period. Management said site-development margins remained at first-half levels despite several large projects being in early construction stages, when margins tend to be lower.
CEC’s operating margins improved both sequentially and year over year. Sterling said it is winding down non-core CEC businesses, a process expected to be completed by the end of 2027. Those operations are expected to reduce full-year 2026 CEC margins by approximately 160 basis points, masking what management described as a roughly equivalent improvement in its core operations.
Transportation Profits Rise Despite Lower Revenue Transportation Solutions revenue declined 3% as the company shifted resources toward higher-margin E-Infrastructure work. Still, adjusted operating income increased 22% and adjusted operating margin reached 19.7%, reflecting more selective project choices.
Transportation backlog ended the quarter at $964 million, up 31% from a year earlier, primarily due to unsigned backlog converting to signed work. On a combined backlog basis, however, the segment declined 22% as resource allocation moved toward E-Infrastructure.
Building Solutions revenue fell 5% as homebuilder activity slowed, and its adjusted operating margin was 8%. Govin said Sterling expects residential conditions to remain under pressure through the rest of 2026 and into 2027.
Cash Flow, Capital Spending and Outlook For the first nine months of 2026, operating cash flow was $427 million, up 68% from the comparable prior-year period. Chief Financial Officer Nick Grindstaff said receivables increased due to E-Infrastructure growth and collection timing, though the company had already collected a major portion of the outstanding funds in early October.
Investing activities used $276 million of cash year to date, including $115 million in capital expenditures. Sterling now expects approximately $140 million in full-year capital expenditures. Financing activities used $325 million, including $107 million of share repurchases. At quarter-end, $267 million remained available under the company’s repurchase authorization.
On July 2, Sterling expanded its revolving credit facilities to $1.5 billion and extended their maturity to July 2031. The company used the facility and cash on hand to repay its existing term loan. It ended the quarter with $217 million in cash and $95 million in debt, resulting in a net cash position of $122 million.
Sterling raised its 2026 guidance to the following ranges:
Revenue of $4.63 billion to $4.73 billion Diluted EPS of $19.16 to $19.42 Adjusted diluted EPS of $21.70 to $21.96 EBITDA of $905 million to $916 million Adjusted EBITDA of $970 million to $981 million At the midpoint of its revised outlook, Sterling expects 88% revenue growth, 101% adjusted EPS growth and 94% adjusted EBITDA growth for 2026. The company’s guidance assumes a more pronounced weather effect in the fourth quarter than it experienced in 2025.
Looking beyond 2026, Cutillo said Sterling is targeting annual organic profitability growth of 20% to 30% over the next several years, with acquisitions providing an additional avenue for expansion. Management said it believes 2027 could meet or exceed that organic-growth framework, supported by continued mission-critical project demand, though the company noted its acquisition activity will depend on finding suitable opportunities.
About Sterling Infrastructure (NASDAQ:STRL)Sterling Infrastructure, Inc is a U.S.-based infrastructure services company that provides construction and specialty contracting solutions through three principal business segments: E-Infrastructure Solutions, Transportation Solutions and Building Solutions.
Its E-Infrastructure Solutions segment supports the development of data centers, advanced manufacturing facilities, energy and power infrastructure, and other large-scale industrial projects. Transportation Solutions provides construction and rehabilitation services for highways, roads, bridges, airports, rail and transit systems, and related public infrastructure.
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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Albany International Corp. ( AIN ) Q3 2026 Earnings Call October 29, 2026 9:00 AM EDT Company Participants Karen Blomquist - Director of Investor Relations Gunnar Kleveland - President, CEO & Director Sean Valashinas - VP, Controller, Acting CFO & Acting Principal Financial Officer & Chief Accounting Officer Conference Call Participants Chigusa Katoku - JPMorgan Chase & Co, Research Division Alexandra Eleni Mandery - Truist Securities, Inc., Research Division Jan-Frans Engelbrecht - Robert W. Baird & Co. Incorporated, Research Division Presentation Operator Hello, everyone.
WYOMISSING, Pa., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) today announced financial results for the third quarter ended September 30, 2026.
Financial Highlights
Three Months Ended September 30,(in millions, except per share data) 2026
2025
Total Revenue $435.4 $397.6 Income from Operations $309.9 $337.2 Net Income $213.8 $248.5 FFO (1) (4) $275.9 $315.5 AFFO (2) (4) $311.7 $282.0 Adjusted EBITDA (3) (4) $413.9 $366.4 Net income, per diluted common share $0.71 $0.85 FFO, per diluted common share and OP/LTIP units (4) $0.92 $1.08 AFFO, per diluted common share and OP/LTIP units (4) $1.04 $0.97 Annualized dividend per share $3.28 $3.12 Dividend yield based on period end stock price 8.6% 6.7% _________________________________________
(1)Funds from Operations ("FFO") is net income, excluding (gains) or losses from dispositions of property and real estate depreciation as defined by NAREIT. (2)Adjusted Funds From Operations ("AFFO") is FFO, excluding, as applicable to the particular period, stock-based compensation expense; the amortization of debt issuance costs, bond premiums and original issuance discounts; other depreciation; amortization of land rights; accretion on investment in leases; non-cash adjustments to financing lease liabilities; straight-line rent and deferred rent adjustments; losses on debt extinguishment and other financing costs; severance charges; capitalized interest; and provision (benefit) for credit losses, net, reduced by capital maintenance expenditures. (3)Adjusted EBITDA is net income, excluding, as applicable to the particular period, interest, net; income tax expense; real estate depreciation; other depreciation; (gains) or losses from dispositions of property; stock-based compensation expense; straight-line rent and deferred rent adjustments; amortization of land rights; accretion on investment in leases; non-cash adjustments to financing lease liabilities; losses on debt extinguishment and other financing costs; severance charges; and provision (benefit) for credit losses, net. (4)Metrics are presented assuming full conversion of limited partnership units to common shares and therefore before the effect on net income attributable to noncontrolling interests. Peter Carlino, Chairman and Chief Executive Officer of GLPI, commented, “Our third quarter was another record for revenue, AFFO and Adjusted EBITDA. Total revenue rose 9.5% to $435.4 million, AFFO grew 10.5% to $311.7 million and Adjusted EBITDA increased 13.0% to $413.9 million, while AFFO per share rose 7.2% to $1.04. These results demonstrate the strength of our model which prioritizes long-term triple-net leases with built-in escalators, strong lease coverage, and the ability to structure and underwrite complex transactions and creative funding solutions for quality tenants. Despite this consistent execution, we believe GLPI’s share price remains significantly dislocated from its fundamentals, resulting in an attractive yield of over 8.5% based on the current quarterly cash dividend.
“Regional gaming has proven its resilience for decades, and it is doing so again. Same-store operator results delivered healthy year-over-year gains through the first nine months of 2026, and the durability of our rents and strong coverage stand out against the currently volatile macro backdrop."
Recent Developments
On October 27, 2026, the Company entered into definitive agreements to form a joint venture with Prologis, Inc (NYSE: PLD) (“Prologis”) to develop the former Hollywood Casino Joliet site in Illinois. GLPI will contribute its owned land to the joint venture in three phases, and Prologis will serve as the managing member and developer of the site. Prologis intends to develop the site, subject to the review and approval by the City of Joliet, into a Class A warehouse and distribution park, which, when completed, is currently anticipated to consist of five building structures totaling more than 3.8 million square feet. The project is expected to be developed over approximately five years, with Prologis holding options over the development of phases two and three.GLPI will receive a capital account credit of $61 million, assuming all three phases are developed, for its contribution of the land to the joint venture, and GLPI will hold an ownership interest in the completed project of approximately 20%, which could be increased to approximately 30%, should GLPI elect to contribute additional capital.
On June 30, 2026, the Company entered into a second amendment to its loan related to the Hard Rock Casino Rockford, pursuant to which the borrower repaid $16.0 million of principal. The amendment also provides for scheduled future principal repayments on or before March 31, 2028, and March 31, 2029. The maturity date was extended to December 31, 2029, and includes an option for GLPI to acquire the building improvements at Hard Rock Casino Rockford.
On June 24, 2026, the Company funded $216.3 million to complete its $225 million commitment for the Hollywood Casino and Hotel Aurora landside development project for PENN Entertainment, Inc. (NASDAQ: PENN) ("PENN") at a 7.75% capitalization rate.
On June 1, 2026, the Company settled a forward sale agreement pursuant, to which it issued 7,589,487 shares of common stock raising net proceeds of $351.0 million.
On March 4, 2026, the Company issued $800 million of senior notes due on March 1, 2036. The notes were priced at 99.857% of par value, with a coupon of 5.625%. The Company used the net proceeds to repay borrowings outstanding under the Company's term loan credit facility, as well as for working capital and general corporate purposes.
On February 11, 2026, GLPI exercised its option to acquire the real property assets of Bally’s Lincoln Casino Resort for a purchase price of $700 million and additional annual rent of $56.0 million (8.0% cap rate). The Company issued 332,890 OP Units in connection with the transaction, with the balance of the consideration paid in cash.
On January 15, 2026, GLPI entered into a development agreement with The Cordish Companies ("Cordish") to fund up to $440 million of real estate construction costs for the Live! Casino & Hotel Virginia and acquired the project land for $27 million, representing a total commitment of $467 million at an 8.0% cap rate. Dividends
On September 1, 2026, the Company announced that its Board of Directors declared a third quarter dividend of $0.82 per share on the Company's common stock that was paid on September 25, 2026 to shareholders of record on September 11, 2026.
2026 Guidance
Reflecting the current operating and competitive environment, the Company is updating its AFFO guidance for the full year 2026 based on the following assumptions and other factors:
The guidance does not include the impact on operating results from any possible future acquisitions or dispositions, future capital markets activity, or other future non-recurring transactions that have yet to be announced. The updated guidance incorporates the additional development fundings of approximately $265 million, which will bring total 2026 development spending to $800 million.The guidance assumes there will be no material changes in applicable legislation, regulatory environment, world events, including weather, recent consumer trends, economic conditions, oil prices, competitive landscape or other circumstances beyond our control that may adversely affect the Company's results of operations. The Company estimates AFFO for the year ending December 31, 2026 will be between $1.222 billion and $1.225 billion, or between $4.11 and $4.12 per diluted share and OP/LTIP units. GLPI's prior guidance contemplated AFFO for the year ending December 31, 2026 of between $1.219 billion and $1.225 billion, or between $4.10 and $4.12 per diluted share and OP/LTIP units.
The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, provision for credit losses, net, and other non-core items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. In particular, the Company is unable to predict with reasonable certainty the amount of the change in the provision for credit losses, net, under ASU No. 2016-13 - Financial Instruments - Credit Losses ("ASC 326") in future periods. The non-cash change in the provision for credit losses under ASC 326 with respect to future periods is dependent upon future events that are entirely outside of the Company's control and may not be reliably predicted, including the performance and future outlook of our tenants' operations for our leases that are accounted for as investment in leases, as well as broader macroeconomic factors and future predictions of such factors. As a result, forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Portfolio Update
GLPI's primary business consists of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements. The Company also extends loans that produce fixed or variable returns which may convert into leased rent upon project completion or stabilization. As of September 30, 2026, GLPI's portfolio consisted of interests in 71 gaming and related facilities, including the real property associated with 34 gaming and related facilities operated by PENN Entertainment, Inc. ("PENN"), the real property associated with 6 gaming and related facilities operated by Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars"), the real property associated with 4 gaming and related facilities operated by Boyd Gaming Corporation (NYSE: BYD) ("Boyd"), the real property associated with 16 gaming and related facilities operated by Bally's Corporation (NYSE: BALY) ("Bally's"), 2 facilities under development; one with Bally's in Chicago, Illinois, and the other for The Cordish Companies ("Cordish") and Bruce Smith Enterprise in Petersburg, Virginia, the real property associated with 3 gaming and related facilities operated by Cordish, 1 gaming and related facility operated by American Racing & Entertainment LLC ("American Racing"), 4 gaming and related facilities operated by Strategic Gaming Management, LLC ("Strategic") and 1 facility managed by a subsidiary of Hard Rock International ("Hard Rock"). These facilities are geographically diversified across 21 states.
Conference Call Details
The Company will hold a conference call on October 30, 2026, at 10:00 a.m. (Eastern Time) to discuss its financial results, current business trends and market conditions.
To Participate in the Telephone Conference Call:
Dial in at least five minutes before the scheduled start time.
Domestic: 1-877/407-0784
International: 1-201/689-8560
The playback can be accessed through Friday, November 6, 2026.
Webcast
The conference call will be available in the Investor Relations section of the Company's website at www.glpropinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary software. A replay of the call will also be available for 90 days thereafter on the Company’s website.
GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Comprehensive Income
(in thousands, except per share data) (unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2026
2025
2026
2025
Revenues Rental income$370,956 $341,755 $1,093,682 $1,021,534 Income from investment in leases, financing receivables 52,999 48,066 158,555 143,756 Income from investment in leases, sales-type 3,842 3,767 11,517 11,289 Interest income from real estate loans 7,652 4,022 22,199 11,142 Total income from real estate 435,449 397,610 1,285,953 1,187,721 Operating expenses Land rights and ground lease expense 13,884 13,785 41,831 41,282 General and administrative 12,871 16,552 44,054 51,172 Losses (gains) from dispositions of property (6,768) — (5,598) (125)Depreciation 69,295 67,473 200,915 201,720 Provision (benefit) for credit losses, net 36,224 (37,363) 29,067 55,611 Total operating expenses 125,506 60,447 310,269 349,660 Income from operations 309,943 337,163 975,684 838,061 Other income (expenses) Interest expense (98,884) (94,059) (295,445) (281,265)Interest income 3,304 9,720 9,899 23,656 Losses on debt extinguishment and other financing costs — (3,783) (268) (3,783)Total other expenses (95,580) (88,122) (285,814) (261,392) Income before income taxes 214,363 249,041 689,870 576,669 Income tax expense 534 560 1,695 1,669 Net income$213,829 $248,481 $688,175 $575,000 Net income attributable to noncontrolling interest in the Operating Partnership (6,193) (7,290) (20,294) (17,186)Net income attributable to common shareholders$207,636 $241,191 $667,881 $557,814 Earnings per common share: Basic earnings attributable to common shareholders$0.71 $0.85 $2.33 $2.00 Diluted earnings attributable to common shareholders$0.71 $0.85 $2.33 $2.00 Other comprehensive income Net income 213,829 248,481 688,175 575,000 Gain on cash flow hedges — 103 — 967 Reclassification of derivative gain to interest expense (24) (9) (72) (9)Comprehensive income 213,805 248,575 688,103 575,958 Comprehensive income attributable to noncontrolling interest in the Operating Partnership (6,192) (7,293) (20,291) (17,216)Comprehensive income attributable to common shareholders 207,613 241,282 667,812 558,742 GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIESCurrent Year Revenue Detail(in thousands) (unaudited) Three Months Ended September 30, 2026Building
base rentLand base
rentPercentage
rent and
other
rental
revenueInterest
income on
real estate
loansTotal cash
incomeStraight-line
rent and
deferred
rent
adjustmentsGround
rent in
revenueAccretion
on leasesTotal
income
from real
estateAmended PENN Master Lease$55,235$10,759$6,512$ — $ 72,506 $4,952 $604$—$ 78,062 PENN 2023 Master Lease 70,501 — 53 — 70,554 4,343 — — 74,897 Amended Pinnacle Master Lease 61,482 17,814 7,316 — 86,612 1,858 2,261 — 90,731 PENN Morgantown Lease — 806 — — 806 — — — 806 Caesars Master Lease 16,587 5,932 — — 22,519 1,631 330 — 24,480 Horseshoe St. Louis Lease 6,097 — — — 6,097 219 — — 6,316 Boyd Master Lease 21,297 2,946 3,026 — 27,269 35 526 — 27,830 Boyd Belterra Lease 753 474 498 — 1,725 123 — — 1,848 Bally's Master Lease 27,478 — — — 27,478 — 2,656 — 30,134 Bally's Master Lease II 29,572 — — — 29,572 (66) 885 — 30,391 Maryland Live! Lease 19,752 — — — 19,752 — 2,068 3,294 25,114 Pennsylvania Live! Master Lease 13,167 — — — 13,167 — 310 2,140 15,617 Casino Queen Master Lease 3,612 — — — 3,612 47 — — 3,659 Tropicana Las Vegas Lease — 3,842 — — 3,842 — — — 3,842 Rockford Lease — 2,094 — — 2,094 — — 530 2,624 Rockford Loan — — — 2,733 2,733 — — — 2,733 Tioga Downs Lease 3,759 — — — 3,759 — 1 565 4,325 Strategic Gaming Leases 6,170 — — — 6,170 — 106 845 7,121 Ione Loan — — — 2,733 2,733 — — — 2,733 Bally's Chicago Lease 12,401 5,067 — — 17,468 (17,468) — — — Dry Creek Loan — — — 1,466 1,466 — — — 1,466 Virginia Live! Development — — — 720 720 — — — 720 Total$347,863$49,734$17,405$7,652$ 422,654 $(4,326)$9,747$7,374$ 435,449 GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIESCurrent Year Revenue Detail(in thousands) (unaudited) Nine Months Ended September 30, 2026Building
base rentLand base
rentPercentage
rent and
other
rental
revenueInterest
income on
real estate
loansTotal cash
incomeStraight-line
rent and
deferred
rent
adjustmentsGround
rent in
revenueAccretion on leasesTotal
income
from real
estateAmended PENN Master Lease$165,704$32,276$19,487$—$ 217,467$14,856 $1,853$— $ 234,176 PENN 2023 Master Lease 203,125 — 273 — 203,398 12,599 — — 215,997 Amended Pinnacle Master Lease 184,447 53,442 23,022 — 260,911 5,574 6,717 — 273,202 PENN Morgantown Lease — 2,418 — — 2,418 — — — 2,418 Caesars Master Lease 49,762 17,796 — — 67,558 4,892 990 — 73,440 Horseshoe St. Louis Lease 18,289 — — — 18,289 659 — — 18,948 Boyd Master Lease 63,333 8,839 9,106 — 81,278 (2,662) 1,579 — 80,195 Boyd Belterra Lease 2,239 1,421 1,496 — 5,156 (297) — — 4,859 Bally's Master Lease 81,523 — — — 81,523 — 7,992 — 89,515 Bally's Master Lease II 82,179 — — — 82,179 (199) 2,756 — 84,736 Maryland Live! Lease 59,255 — — — 59,255 — 6,236 9,714 75,205 Pennsylvania Live! Master Lease 39,352 — — — 39,352 — 926 6,437 46,715 Casino Queen Master Lease 10,598 — — — 10,598 149 — — 10,747 Tropicana Las Vegas Lease — 11,518 — — 11,518 — — (1) 11,517 Rockford Lease — 6,256 — — 6,256 — — 1,579 7,835 Rockford Loan — — — 8,766 8,766 — — — 8,766 Tioga Downs Lease 11,235 — — — 11,235 — 4 1,696 12,935 Strategic Gaming Leases 18,309 — — — 18,309 — 317 2,688 21,314 Ione Loan — — — 7,364 7,364 — — — 7,364 Bally's Chicago Lease 26,756 15,067 — — 41,823 (41,823) — — — Dry Creek Loan — — — 4,348 4,348 — — — 4,348 Virginia Live! Development — — — 1,721 1,721 — — — 1,721 Total$1,016,106$149,033$53,384$22,199$ 1,240,722$(6,252)$29,370$22,113 $ 1,285,953 Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted EBITDA
Gaming and Leisure Properties, Inc. and Subsidiaries
CONSOLIDATED
(in thousands, except per share and share data) (unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2026
2025
2026
2025
Net income$ 213,829 $ 248,481 $ 688,175 $ 575,000 Losses (gains) from dispositions of property (6,768) — (5,598) (125)Real estate depreciation 68,829 66,985 199,567 200,263 Funds from operations$ 275,890 $ 315,466 $ 882,144 $ 775,138 Straight-line rent and deferred rent adjustments 4,326 (5,390) 6,252 (20,235)Other depreciation 466 488 1,348 1,457 Provision (benefit) for credit losses, net 36,224 (37,363) 29,067 55,611 Amortization of land rights 4,270 4,270 12,810 12,810 Amortization of debt issuance costs, bond premiums and original issuance discounts 3,636 3,425 10,739 9,884 Capitalized interest (10,570) (3,652) (25,484) (10,668)Stock-based compensation 4,695 1,551 17,443 16,565 Severance charges — 6,320 — 6,320 Losses on debt extinguishment and other financing costs — 3,783 268 3,783 Accretion on investment in leases (7,374) (6,991) (22,113) (20,753)Non-cash adjustment to financing lease liabilities 112 112 316 317 Capital maintenance expenditures (5) — (5) (157)Adjusted funds from operations$ 311,670 $ 282,019 $ 912,785 $ 830,072 Interest, net (1) 94,787 83,552 283,198 255,277 Income tax expense 534 560 1,695 1,669 Capital maintenance expenditures 5 — 5 157 Amortization of debt issuance costs, bond premiums and original issuance discounts (3,636) (3,425) (10,739) (9,884)Capitalized interest 10,570 3,652 25,484 10,668 Adjusted EBITDA$ 413,930 $ 366,358 $ 1,212,428 $ 1,087,959 FFO, per diluted common share and OP/LTIP units$ 0.92 $ 1.08 $ 2.99 $ 2.70 AFFO, per diluted common share and OP/LTIP units$ 1.04 $ 0.97 $ 3.09 $ 2.89 Weighted average number of common shares and OP/LTIP units outstanding Diluted common shares 291,071,440 283,502,768 286,774,444 278,800,590 Diluted OP/LTIP units 8,573,903 8,323,931 8,592,661 8,319,581 Diluted common shares and diluted OP/LTIP units 299,645,343 291,826,699 295,367,105 287,120,171 _________________________________________
(1) Excludes non-cash interest expense gross ups related to certain ground leases.
Reconciliation of Cash Net Operating Income
Gaming and Leisure Properties, Inc. and Subsidiaries
CONSOLIDATED
(in thousands, except per share and share data) (unaudited)
Three Months Ended
September 30, 2026 Nine Months Ended
September 30, 2026Adjusted EBITDA$ 413,930 $ 1,212,428 General and administrative expenses 12,871 44,054 Stock-based compensation (4,695) (17,443)Cash net operating income (1)$ 422,106 $ 1,239,039 _________________________________________
(1) Cash net operating income is cash rental income and interest on real estate loans less cash property level expenses.
Gaming and Leisure Properties, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
September 30, 2026 December 31, 2025Assets Real estate investments, net$9,666,895 $8,474,261 Investment in leases, financing receivables, net 2,550,915 2,557,504 Investment in leases, sales-type, net 245,121 248,421 Real estate loans, net 315,634 247,999 Right-of-use assets and land rights, net 1,057,047 1,072,163 Cash and cash equivalents 165,752 224,314 Other assets 94,832 84,947 Total assets$14,096,196 $12,909,609 Liabilities Accounts payable and accrued expenses$9,353 $6,641 Accrued interest 74,010 106,253 Accrued salaries and wages 6,106 10,209 Operating lease liabilities 240,149 242,481 Financing lease liabilities 62,703 61,219 Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts 8,080,546 7,203,731 Deferred rental revenue 211,870 205,786 Other liabilities 57,524 65,029 Total liabilities 8,742,261 7,901,349 Equity Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at September 30, 2026 and December 31, 2025) — — Common stock ($.01 par value, 500,000,000 shares authorized, 290,923,261 and 283,037,310 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively) 2,909 2,830 Additional paid-in capital 6,972,671 6,613,488 Accumulated deficit (2,021,301) (1,990,770)Accumulated other comprehensive income 835 904 Total equity attributable to Gaming and Leisure Properties 4,955,114 4,626,452 Noncontrolling interests in GLPI's Operating Partnership (8,473,163 units and 8,224,939 units outstanding at September 30, 2026 and December 31, 2025, respectively) 398,821 381,808 Total equity 5,353,935 5,008,260 Total liabilities and equity$14,096,196 $12,909,609 Debt Capitalization
The Company’s debt structure as of September 30, 2026 was as follow
Years to
MaturityInterest Rate Balance (in thousands)Unsecured $2,090 Million Revolver Due December 20282.25.201% 329,130 Term Loan Due December 20282.25.068% 679,000 Senior Unsecured Notes Due June 20281.75.750% 500,000 Senior Unsecured Notes Due January 20292.35.300% 750,000 Senior Unsecured Notes Due January 20303.34.000% 700,000 Senior Unsecured Notes Due January 20314.34.000% 700,000 Senior Unsecured Notes Due January 20325.33.250% 800,000 Senior Unsecured Notes Due February 20336.45.250% 600,000 Senior Unsecured Notes Due December 20337.26.750% 400,000 Senior Unsecured Notes Due September 20348.05.625% 800,000 Senior Unsecured Notes Due March 20369.45.625% 800,000 Senior Unsecured Notes Due November 203711.15.750% 700,000 Senior Unsecured Notes Due September 205428.06.250% 400,000 Total long-term debt 8,158,130 Less: unamortized debt issuance costs, bond premiums and original issuance discounts (77,584)Total long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts 8,080,546 Weighted average6.65.097% _________________________________________
As of September 30, 2026, the Company has entered into various commitments or call rights to finance/acquire future investments in gaming and related facilities for our tenants. These are detailed in the table below. Our tenants retain the option to decline our financing for certain projects and may seek alternative financing solutions. The inclusion of a commitment in this disclosure does not guarantee that the financing will be utilized by the tenant in circumstances where a tenant has the option.
DescriptionEstimated
Commitment
amountAmount funded at
September 30, 2026Funding associated with a landside move at Ameristar Casino Council Bluffs (1)$150 millionNonePotential transaction at the former Tropicana Las Vegas site with Bally's$175 million$48.5 millionReal estate construction costs for Bally's Chicago$940 million$640.7 millionIone Loan to fund a new casino development near Sacramento, California$110 million$98.9 millionFunding associated with the future site and construction for Live! Casino & Hotel Virginia$467 million$48.6 millionDelayed draw term loan for Dry Creek Rancheria Resort development$180 millionNone (1) The Company has agreed to fund, if requested by PENN in its sole discretion on or before March 31, 2029, construction improvements in an amount not to exceed the greater of (i) the hard costs associated with the project and (ii) $150.0 million at a 7.10% capitalization rate.
Property and lease information
The Company has disclosed the following key terms of its master leases and single-property leases in the tables below, along with the properties within each lease at September 30, 2026. We believe the following key terms are important for users of our financial statements to understand.
The coverage ratio is a defined term in each respective lease agreement with our tenants and represents the ratio of Adjusted EBITDAR to rent expense for the properties contained within each lease. Adjusted EBITDAR is defined in each respective lease but is generally consistent with the Company's definition of Adjusted EBITDA plus rent expense paid to GLPI.
Certain leases have a minimum escalator coverage ratio governor as disclosed below. Before a rent escalation of up to 2% on the building base rent component of each lease can occur, the minimum coverage ratio for these leases needs to be 1.8 to 1 for the applicable lease year.
The reported coverage ratios below with respect to our tenants' rent coverage over the trailing twelve months were provided by our tenants for the most recently available time period. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to its accuracy. Rent coverage ratios are not reported for ground leases, leases with development projects or leases that have been in effect for less than twelve months.
The Amended PENN Master Lease, the Amended Pinnacle Master Lease, the Boyd Master Lease, and the Belterra Park Lease each include (i) a fixed rent component, a portion of which escalates annually by up to 2% if specified rent coverage thresholds are met, and (ii) a percentage rent component tied to property performance. The percentage rent component is recalculated periodically, every five years for the Amended PENN Master Lease and every two years for the other leases, based on 4% of the average annual net revenues of the applicable facilities in excess of a contractually defined baseline, subject to certain floors. Master Leases Penn 2023 Master LeaseAmended Penn Master LeaseOperatorPENNPENNPropertiesHollywood Casino AuroraAurora, ILHollywood Casino LawrenceburgLawrenceburg, IN Hollywood Casino JolietJoliet, ILArgosy Casino AltonAlton, IL Hollywood Casino ToledoToledo, OHHollywood Casino at Charles Town RacesCharles Town, WV Hollywood Casino ColumbusColumbus, OHHollywood Casino at Penn National Race CourseGrantville, PA M ResortHenderson, NVHollywood Casino BangorBangor, ME Hollywood Casino at the MeadowsWashington, PAZia Park CasinoHobbs, NM Hollywood Casino PerryvillePerryville, MDHollywood Casino Gulf CoastBay St. Louis, MS Argosy Casino RiversideRiverside, MO Hollywood Casino TunicaTunica, MS Boomtown BiloxiBiloxi, MS Hollywood Casino St. LouisMaryland Heights, MO Hollywood Gaming Casino at Dayton RacewayDayton, OH Hollywood Gaming Casino at Mahoning Valley Race TrackYoungstown, OH 1st Jackpot CasinoTunica, MSCommencement Date1/1/2023 11/1/2013 Lease Expiration Date10/31/2033 10/31/2033 Remaining Renewal Terms15 (3x5 years) 15 (3x5 years) Corporate GuaranteeYes Yes Master Lease with Cross CollateralizationYes Yes Technical Default Landlord ProtectionYes Yes Default Adjusted Revenue to Rent Coverage1.1 1.1
Competitive Radius Landlord ProtectionYes Yes Escalator Details Yearly Base Rent Escalator Maximum1.5% (1) 2%
Coverage ratio at June 30, 20261.84 2.12
Minimum Escalator Coverage GovernorN/A 1.8
Yearly Anniversary for RealizationNovember November Percentage Rent Reset Details Reset FrequencyN/A 5 years Next ResetN/A November-28 (1) In addition to the annual escalation, a one-time annualized increase of $1.4 million occurs on November 1, 2027.
Master Leases Amended Pinnacle Master LeaseBally's Master LeaseOperatorPENNBally'sPropertiesAmeristar Black HawkBlack Hawk, COBally's EvansvilleEvansville, IN Ameristar East ChicagoEast Chicago, INBally's Dover Casino ResortDover, DE Ameristar Council BluffsCouncil Bluffs, IABlack Hawk (Black Hawk North, West and East casinos)Black Hawk, CO L'Auberge Baton RougeBaton Rouge, LAQuad Cities Casino & HotelRock Island, IL Boomtown Bossier CityBossier City, LABally's Tiverton Hotel & CasinoTiverton, RI L'Auberge Lake CharlesLake Charles, LAHard Rock Casino and Hotel BiloxiBiloxi, MS Boomtown New OrleansNew Orleans, LA Ameristar VicksburgVicksburg, MS River City Casino & HotelSt. Louis, MO Jackpot Properties (Cactus Petes and Horseshu)Jackpot, NV Plainridge Park CasinoPlainridge, MA Commencement Date4/28/2016 6/3/2021 Lease Expiration Date4/30/2031 6/2/2036 Remaining Renewal Terms20 (4x5 years) 20 (4x5 years) Corporate GuaranteeYes Yes Master Lease with Cross CollateralizationYes Yes Technical Default Landlord ProtectionYes Yes Default Adjusted Revenue to Rent Coverage1.2
1.35 (1) Competitive Radius Landlord ProtectionYes Yes Escalator Details Yearly Base Rent Escalator Maximum2%
(2)
Coverage ratio at June 30, 20261.70 (3) 1.98
Minimum Escalator Coverage Governor1.8
N/A Yearly Anniversary for RealizationMay June Percentage Rent Reset Details Reset Frequency2 years N/A Next ResetMay-28 N/A (1) If the tenant's parent's net leverage is greater than 5.5 to 1, then the adjusted revenue to rent coverage for the last two consecutive test periods must be at least 1.35. If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2. (2) If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%. If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year. (3) Coverage ratio for escalation purposes excludes adjusted revenue and rent attributable to the Plainridge Park facility as well as certain other fixed rent amounts. Master Leases Bally's Master Lease IICasino Queen Master LeaseOperatorBally'sBally'sPropertiesBally's Kansas CityKansas City, MOBally's MarquetteMarquette, IA Bally's Shreveport Casino & HotelShreveport, LABally's Baton RougeBaton Rouge, LA DraftKings at Casino Queen (4)East St. Louis, IL The Queen Baton Rouge (4)Baton Rouge, LA Bally's Lincoln Casino ResortLincoln, RI Commencement Date12/16/2024 12/17/2021 Lease Expiration Date12/15/2039 12/31/2036 Remaining Renewal Terms20 (4x5 years) 20 (4x5 years) Corporate GuaranteeYes (5)
Master Lease with Cross CollateralizationYes Yes Technical Default Landlord ProtectionYes Yes Default Adjusted Revenue to Rent Coverage1.35 (1) 1.35 (1) Competitive Radius Landlord ProtectionYes Yes Escalator Details Yearly Base Rent Escalator Maximum(2)
(3)
Coverage ratio at June 30, 20262.13 (6) N/A Minimum Escalator Coverage GovernorN/A N/A Yearly Anniversary for RealizationDecember December Percentage Rent Reset Details Reset FrequencyN/A N/A Next ResetN/A N/A (1) If the tenant's parent's net leverage is greater than 5.5 to 1, then the adjusted revenue to rent coverage for the last two consecutive test periods must be at least 1.35. If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2. For the Casino Queen Master Lease the test begins on the first anniversary after both development projects are completed and open to the public. (2) If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%. If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year. (3)Rent increases by 0.5% for the first six years. Beginning in the seventh lease year through the remainder of the lease term, if the CPI increases by at least 0.25% for any lease year then annual rent shall be increased by 1.25%, and if the CPI is less than 0.25% then rent will remain unchanged for such lease year. (4) Effective July 1, 2025, these properties were transferred to Bally's Master Lease II and the associated annual rental income of $28.9 million was reallocated from the Casino Queen Master Lease to Bally's Master Lease II. (5) If a default were to occur under the Casino Queen Master Lease, the Company has the right under the terms of the lease to elect to amend Bally’s Master Lease II and place the assets into it, which carries a corporate guarantee. (6)Coverage ratio above is pro forma for the acquisition of the real estate assets of Bally's Twin River Lincoln Casino Resort which closed on February 11, 2026. Master Leases Boyd Master LeaseCaesars Amended and Restated Master LeaseOperatorBoydCaesarsPropertiesBelterra Casino ResortFlorence, INTropicana Atlantic CityAtlantic City, NJ Ameristar Kansas CityKansas City, MOTropicana LaughlinLaughlin, NV Ameristar St. CharlesSt. Charles, MOTrop Casino GreenvilleGreenville, MS Isle Casino Hotel BettendorfBettendorf, IA Isle Casino Hotel WaterlooWaterloo, IACommencement Date10/15/2018 10/1/2018 Lease Expiration Date4/30/2031 9/30/2038 Remaining Renewal Terms20 (4x5 years) 20 (4x5 years) Corporate GuaranteeNo Yes Master Lease with Cross CollateralizationYes Yes Technical Default Landlord ProtectionYes Yes Default Adjusted Revenue to Rent Coverage1.4
1.2
Competitive Radius Landlord ProtectionYes Yes Escalator Details Yearly Base Rent Escalator Maximum2%
2%
Coverage ratio at June 30, 20262.46
1.61
Minimum Escalator Coverage Governor1.8
N/A Yearly Anniversary for RealizationMay October Percentage Rent Reset Details Reset Frequency2 years N/A Next ResetMay-28 N/A Master Leases Pennsylvania Live! Master LeaseStrategic Gaming Leases (1) CordishStrategicPropertiesLive! Casino & Hotel PhiladelphiaPhiladelphia, PASilverado Franklin Hotel & Gaming ComplexDeadwood, SD Live! Casino PittsburghGreensburg, PADeadwood Mountain Grand CasinoDeadwood, SD Baldini's CasinoSparks, NV Sunland Park Race Track & CasinoSunland Park, NMCommencement Date3/1/2022 5/16/2024 Lease Expiration Date2/28/2061 5/31/2049 Remaining Renewal Terms21 (1x11 years, 1x10 years) 20 (2x10 years) Corporate GuaranteeNo Yes Master Lease with Cross CollateralizationYes Yes Technical Default Landlord ProtectionYes Yes Default Adjusted Revenue to Rent Coverage1.4
1.4 (2) Competitive Radius Landlord ProtectionYes Yes Escalator Details Yearly Base Rent Escalator Maximum1.75%
2% (2) Coverage ratio at June 30, 20262.28
1.96 (3) Minimum Escalator Coverage GovernorN/A N/A Yearly Anniversary for RealizationMarch June Percentage Rent Reset Details Reset FrequencyN/A N/A Next ResetN/A N/A (1)Consists of two leases that are cross collateralized and co-terminus with each other. (2)The default adjusted revenue to rent coverage declines to 1.25 if the tenant's adjusted revenues total $75 million or more. Annual rent escalates at 2% beginning in year three of the lease and in year 11 escalates based on the greater of 2% or CPI, capped at 2.5%. (3) Coverage ratio above is pro forma for the acquisition of the real estate assets of Sunland Park which closed on October 15, 2025. Single Property Leases Belterra Park LeaseHorseshoe St. Louis LeaseMorgantown LeaseOperatorBoydCaesarsPENNPropertiesBelterra Park Gaming & Entertainment CenterHorseshoe St. LouisHollywood Casino Morgantown Cincinnati, OHSt. Louis, MOMorgantown, PACommencement Date10/15/20189/29/202010/1/2020Lease Expiration Date04/30/203110/31/203310/31/2040Remaining Renewal Terms20 (4x5 years)20 (4x5 years)30 (6x5 years)Corporate GuaranteeNoYesYesTechnical Default Landlord ProtectionYesYesYesDefault Adjusted Revenue to Rent Coverage1.41.2N/ACompetitive Radius Landlord ProtectionYesYesN/AEscalator Details Yearly Base Rent Escalator Maximum2%
1.75% (1)1.25% (2)Coverage ratio at June 30, 20263.272.03N/AMinimum Escalator Coverage Governor1.8N/AN/AYearly Anniversary for RealizationMayOctoberDecemberPercentage Rent Reset Details Reset Frequency2 yearsN/AN/ANext ResetMay-28N/AN/A (1) For the sixth and seventh lease years, after which time the annual escalation becomes 2% for the remaining term of the lease. (2)If the CPI increase is at least 0.5% for any lease year, the rent for such lease year shall increase by 1.25% of rent as of the immediately preceding lease year, and if the CPI increase is less than 0.5% for such lease year, then the rent shall not increase for such lease year. Single Property Leases MD Live! LeaseTropicana LeaseTioga Downs LeaseOperatorCordishBally'sAmerican Racing and EntertainmentPropertiesLive! Casino & Hotel MarylandTropicana Las VegasTioga Downs Hanover, MDLas Vegas, NVNichols, NYCommencement Date12/29/20219/26/20222/6/2024Lease Expiration Date12/31/20609/25/20722/28/2054Remaining Renewal Terms21 (1x11 years, 1x10 years)49 (1 x 24 years, 1 x 25 years)32 years and 10 months (2x10 years, 1x12 years and 10 months)Corporate GuaranteeNoYesYesTechnical Default Landlord ProtectionYesYesYesDefault Adjusted Revenue to Rent Coverage1.41.35 (1)1.4Competitive Radius Landlord ProtectionYesYesYesEscalator Details Yearly Base Rent Escalator Maximum1.75%
(2)
1.75% (3)Coverage ratio at June 30, 20263.34N/A1.99Minimum Escalator Coverage GovernorN/AN/AN/AYearly Anniversary for RealizationJanuaryOctoberMarchPercentage Rent Reset Details Reset FrequencyN/AN/AN/ANext ResetN/AN/AN/A (1) If the tenant's parent's net leverage is greater than 5.5 to 1, then the adjusted revenue to rent coverage for the last two consecutive test periods must be at least 1.35. If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2. (2)If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%. If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year. (3)Increases by 1.75% beginning with the first anniversary and increases to 2% beginning in year fifteen of the lease through the remainder of the initial lease term. Single Property Leases Rockford LeaseBally's Chicago LeaseVirginia Live!Operator (managed by Hard Rock)Bally'sCordishPropertiesHard Rock Casino RockfordBally's Chicago DevelopmentCordish Virginia Live! Development Rockford, ILChicago, ILPetersburg, VACommencement Date8/29/20237/18/20251/15/2026Lease Expiration Date8/31/21227/31/2040(3)
Remaining Renewal TermsNone20 (4 x 5 years)21 (1x11 years, 1x10 years)Corporate GuaranteeNoYesNoTechnical Default Landlord ProtectionYesYesYesDefault Adjusted Revenue to Rent Coverage1.41.35 (1)1.4Competitive Radius Landlord ProtectionYesYesYesEscalator Details Yearly Base Rent Escalator Maximum2%
(2)
1.75%
Coverage ratio at June 30, 2026N/AN/AN/AMinimum Escalator Coverage GovernorN/AN/AN/AYearly Anniversary for RealizationSeptemberAugust(3)
Percentage Rent Reset Details Reset FrequencyN/AN/AN/ANext ResetN/AN/AN/A (1)If the tenant's parent's net leverage is greater than 5.5 to 1, then the adjusted revenue to rent coverage for the last two consecutive test periods must be at least 1.35. If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2. (2) If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%. If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year. (3) During the construction period, amounts funded for the Virginia Live! development are accounted for as real estate loans because the lessee controls the underlying asset under construction. Upon completion of construction and when the facility is ready for its intended use, the Company will apply the sale and leaseback guidance to determine the appropriate lease classification. Pursuant to the lease agreement, the initial lease term expires on the last day of the calendar month in which the 39th anniversary of the facility's opening occurs, and annual rent escalations commence on the first anniversary of the facility's opening date. Accordingly, the lease expiration date and rent escalation anniversary date will be determined upon the facility's opening date. Disclosure Regarding Non-GAAP Financial Measures
FFO, FFO per diluted common share and OP/LTIP units, AFFO, AFFO per diluted common share and OP/LTIP units, Adjusted EBITDA and Cash Net Operating Income ("Cash NOI"), which are detailed in the reconciliation tables that accompany this release, are used by the Company as performance measures for benchmarking against the Company’s peers and as internal measures of business operating performance, which is used for a bonus metric. These metrics are presented assuming full conversion of limited partnership units to common shares and therefore before the income statement impact of noncontrolling interests. The Company believes FFO, FFO per diluted common share and OP/LTIP units, AFFO, AFFO per diluted common share and OP/LTIP units, Adjusted EBITDA and Cash NOI provide a meaningful perspective of the underlying operating performance of the Company’s current business. This is especially true since these measures exclude real estate depreciation and we believe that real estate values fluctuate based on market conditions rather than depreciating in value ratably on a straight-line basis over time. Cash NOI is cash rental income and interest on real estate loans, less cash property level expenses. Cash NOI excludes depreciation, the amortization of land rights, real estate general and administrative expenses, other non-routine costs and the impact of certain generally accepted accounting principles (“GAAP”) adjustments to rental revenue, such as straight-line rent and deferred rent adjustments and non-cash ground lease income and expense. It is management's view that Cash NOI is a performance measure used to evaluate the operating performance of the Company’s real estate operations and provides investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis.
FFO, FFO per diluted common share and OP/LTIP units, AFFO, AFFO per diluted common share and OP/LTIP units, Adjusted EBITDA and Cash NOI are non-GAAP financial measures that are considered supplemental measures for the real estate industry and a supplement to GAAP measures. NAREIT defines FFO as net income (computed in accordance with GAAP), excluding (gains) or losses from dispositions of property and real estate depreciation. We have defined AFFO as FFO excluding, as applicable to the particular period, stock-based compensation expense, the amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, the amortization of land rights, accretion on investment in leases, non-cash adjustments to financing lease liabilities, straight-line rent and deferred rent adjustments, losses on debt extinguishment and other financing costs, severance charges, capitalized interest and provision (benefit) for credit losses, net, reduced by capital maintenance expenditures. We have defined Adjusted EBITDA as net income excluding, as applicable to the particular period, interest, net, income tax expense, real estate depreciation, other depreciation, (gains) or losses from dispositions of property, stock-based compensation expense, straight-line rent and deferred rent adjustments, the amortization of land rights, accretion on investment in leases, non-cash adjustments to financing lease liabilities, losses on debt extinguishment and other financing costs, severance charges, and provision (benefit) for credit losses, net. Finally, we have defined Cash NOI as Adjusted EBITDA excluding general and administrative expenses and including stock-based compensation expense and severance charges.
FFO, FFO per diluted common share and OP/LTIP units, AFFO, AFFO per diluted common share and OP/LTIP units, Adjusted EBITDA and Cash NOI are not recognized terms under GAAP. These non-GAAP financial measures: (i) do not represent cash flow from operations as defined by GAAP; (ii) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii) are not alternatives to cash flow as a measure of liquidity. In addition, these measures should not be viewed as an indication of our ability to fund all of our cash needs, including to make cash distributions to our shareholders, to fund capital improvements, or to make interest payments on our indebtedness. Investors are also cautioned that FFO, FFO per diluted common share and OP/LTIP units, AFFO, AFFO per diluted common share and OP/LTIP units, Adjusted EBITDA and Cash NOI, as presented, may not be comparable to similarly titled measures reported by other real estate companies, including REITs, due to the fact that not all real estate companies use the same definitions. Our presentation of these measures does not replace the presentation of our financial results in accordance with GAAP.
About Gaming and Leisure Properties
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, including coverage of the landlord's interests, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. The Company also extends loans that produce fixed or variable returns which may convert into leased rent upon project completion or stabilization.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our expectations regarding our future growth and cash flows in 2026 and beyond, 2026 AFFO guidance, the future issuance of securities and the Company benefiting from recent portfolio additions and completed transactions. Forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: the ability of GLPI or its partners to successfully complete construction of various casino projects currently under development for which GLPI has agreed to provide construction development funding, including Bally’s Chicago, and the ability and willingness of GLPI’s partners to meet and/or perform their respective obligations under the applicable construction financing and/or development documents; the impact that higher inflation and interest rates and uncertainty with respect to the future state of the economy could have on discretionary consumer spending, including the casino operations of our tenants; unforeseen consequences related to U.S. government economic, monetary or trade policies and stimulus packages on inflation rates, interest rates and economic growth; geopolitical events, including recent conflicts in the Middle East, and their potential impact on U.S. Treasury yields and inflation rates; the ability of GLPI’s tenants to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including, without limitation, to satisfy obligations under their existing credit facilities and other indebtedness; the availability of and the ability to identify suitable and attractive acquisition and development opportunities and the ability to acquire and lease the respective properties on favorable terms; the degree and nature of GLPI's competition; the ability to receive, or delays in obtaining, the regulatory approvals required to own its properties, or other delays or impediments to completing GLPI's planned acquisitions or projects; the potential of a new pandemic or similar national health crisis, including its effect on the ability or desire of people to gather in large groups (including in casinos), which could impact GLPI’s financial results, operations, outlooks, plans, goals, growth, cash flows, liquidity, and stock price; GLPI's ability to maintain its status as a REIT, given the highly technical and complex Internal Revenue Code provisions for which only limited judicial and administrative authorities exist, where even a technical or inadvertent violation could jeopardize REIT qualification and where requirements may depend in part on the actions of third parties over which GLPI has no control or only limited influence; GLPI's ability to satisfy certain asset, income, organizational, distribution, shareholder ownership and other requirements on a continuing basis in order for GLPI to maintain its REIT status; the ability and willingness of GLPI’s tenants and other third parties to meet and/or perform their obligations under their respective contractual arrangements with GLPI, including lease and note requirements and in some cases, their obligations to indemnify, defend and hold GLPI harmless from and against various claims, litigation and liabilities; the ability of GLPI’s tenants to comply with laws, rules and regulations in the operation of GLPI’s properties, to deliver high quality services, to attract and retain qualified personnel and to attract customers; GLPI's ability to generate sufficient cash flows to service and comply with financial covenants under GLPI’s outstanding indebtedness; GLPI's ability to access capital through debt and equity markets in amounts and at rates and costs acceptable to GLPI, including for the satisfaction of GLPI's funding commitments to the extent drawn by its partners, acquisitions or refinancings due to maturities; with respect to our tenant funding commitments, the amounts drawn and the timing of these draws may be different than what the Company assumed; adverse changes in GLPI’s credit rating; the availability of qualified personnel and GLPI’s ability to retain its key management personnel; changes in the U.S. tax law and other federal, state or local laws, whether or not specific to real estate, REITs or to the gaming, lodging or hospitality industries; changes in accounting standards; the impact of weather or climate events or conditions, natural disasters, acts of terrorism and other international hostilities, war (including the current conflict between Russia and Ukraine and conflicts in the Middle East) or political instability; the risk that the historical financial statements included herein do not reflect what the business, financial position or results of operations of GLPI may be in the future; other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and other factors described in GLPI’s Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to GLPI or persons acting on GLPI’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. GLPI undertakes no obligation to publicly update or revise any forward-looking statements contained or incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur as presented or at all.
Contact Gaming and Leisure Properties, Inc.Investor Relations Carlo Santarelli, SVP Corporate Strategy & Investor Relations Joseph Jaffoni at JCIR610/378-8232212/[email protected]@jcir.com
Green Brick Partners, Inc. ( GRBK ) Q3 2026 Earnings Call October 29, 2026 12:00 PM EDT Company Participants Jeffery Cox - Chief Financial Officer James Brickman - Co-Founder, Co-CEO & Director Jed Dolson - Co-CEO, President, COO & Director Conference Call Participants Rohit Seth - B. Riley Securities, Inc., Research Division Ryan Gilbert - BTIG, LLC, Research Division Jay McCanless - Citizens JMP Securities, LLC, Research Division Alexander Rygiel - Texas Capital Securities, Research Division Presentation Operator Hello, everyone.
CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) today announced third quarter 2026 financial results and updated full year 2026 financial guidance. MasTec reported third quarter revenue of $5.2 billion and Adjusted EBITDA of $486 million, both up ~30% year-over-year. Backlog of $24.5 billion was ~46% higher year-over-year. Jose Mas, MasTec's Chief Executive Officer, stated, “We are pleased with our third-quarter performance, as both revenue and Adjusted EBITDA were ahead of our ex.
Net Income per Diluted Share was $3.48 for the Quarter and $9.80 for the Nine Months of 2026
, /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2026. Net income was $182.0 million, or $3.48 per diluted share, in the third quarter of 2026, compared to $182.9 million, or $3.50 per diluted share, in the third quarter of 2025. Net income was $512.8 million, or $9.80 per diluted share, in the first nine months of 2026, compared to $496.0 million, or $9.48 per diluted share, in the first nine months of 2025.
3Q and Nine Months 2026
(in thousands)
3Q'26
3Q'25
2026
2025
Operating income
$ 207,382
$ 208,921
$ 578,292
$ 559,470
Investment income
19,877
21,554
64,549
60,690
Other income
5,496
2,286
8,317
8,094
Income before income taxes
232,755
232,761
651,158
628,254
Income tax expense
50,766
49,908
138,401
132,299
Net income
$ 181,989
$ 182,853
$ 512,757
$ 495,955
3Q 2026 Highlights
Operating income before taxes decreased $1.5 million, or 0.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.
Management fee revenue - policy issuance and renewal services increased $21.7 million, or 2.6 percent, in the third quarter of 2026 compared to the third quarter of 2025.Management fee revenue - administrative services increased $0.9 million, or 4.7 percent, in the third quarter of 2026 compared to the third quarter of 2025.Cost of operations - policy issuance and renewal servicesCommissions increased $24.0 million in the third quarter of 2026, compared to the third quarter of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.Non-commission expense decreased $1.1 million in the third quarter of 2026 compared to the third quarter of 2025. Personnel costs increased $1.6 million primarily due to higher healthcare costs. Sales and advertising increased $1.8 million primarily due to an increase in agent-related costs. Acquisition and underwriting support costs decreased $5.8 million primarily due to lower postage and underwriting report costs. Technology and infrastructure costs increased $6.9 million primarily due to higher costs associated with technology initiatives, including internal-use software impairments, depreciation and amortization expense, and cloud usage costs. Administrative and other costs decreased $5.5 million primarily due to lower credit card processing fees.Income from investments before taxes totaled $19.9 million in the third quarter of 2026 compared to $21.6 million in the third quarter of 2025. Net investment income was $25.4 million in the third quarter of 2026 compared to $21.0 million in the third quarter of 2025. Net realized and unrealized investment losses were $5.4 million in the third quarter of 2026 compared to gains of $1.3 million in the third quarter of 2025.
Nine Months 2026 Highlights
Operating income before taxes increased $18.8 million, or 3.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.
Management fee revenue - policy issuance and renewal services increased $92.1 million, or 3.8 percent, in the first nine months of 2026 compared to the first nine months of 2025.Management fee revenue - administrative services increased $4.0 million, or 7.4 percent, in the first nine months of 2026 compared to the first nine months of 2025.Cost of operations - policy issuance and renewal servicesCommissions increased $96.6 million in the first nine months of 2026 compared to the first nine months of 2025, primarily driven by an increase in agent incentive compensation and the growth in direct and affiliated assumed written premium.Non-commission expense decreased $20.7 million in the first nine months of 2026 compared to the first nine months of 2025. Personnel costs increased $6.7 million primarily due to increased incentive compensation driven by stronger performance metrics, and higher base compensation. The increase is partially offset by bonuses awarded to all employees in 2025 in recognition of our 100th anniversary. Acquisition and underwriting support costs decreased $11.5 million primarily due to lower underwriting report and postage costs. Technology and infrastructure costs increased $7.4 million primarily due to higher depreciation and amortization expense from technology initiatives. Professional fees decreased $12.1 million primarily due to reduced use of third-party services related to technology initiatives. Administrative and other costs decreased $9.2 million primarily due to lower credit card processing fees and charitable contributions related to the transition of charitable giving through the Erie Insurance Foundation.Income from investments before taxes totaled $64.5 million in the first nine months of 2026 compared to $60.7 million in the first nine months of 2025. Net investment income was $71.5 million in the first nine months of 2026 compared to $61.0 million in the first nine months of 2025. Net realized and unrealized losses were $5.7 million in the first nine months of 2026 compared to gains of $2.3 million in the first nine months of 2025. Net impairment losses recognized in earnings were $1.3 million in the first nine months of 2026 compared to $2.6 million in the first nine months of 2025.
Webcast Information
Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 30, 2026. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.
Erie Insurance Group
Erie Insurance Group, based in Erie, Pennsylvania, is the 10th largest homeowners insurer, 11th largest automobile insurer, and 9th largest commercial lines insurer in the United States based on direct premiums written, according to AM Best Company. Founded in 1925, Erie Insurance is a Fortune 500 company and the 16th largest property/casualty insurer in the United States based on net premiums written. Rated A (Excellent) by AM Best, ERIE has nearly seven million policies in force and operates in 12 states and the District of Columbia.
News releases and more information are available on ERIE's website at www.erieinsurance.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein. Forward-looking statements relate to future trends, events, or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources. Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:
dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange;dependence upon our relationship with the Exchange and the growth of the Exchange, including:general business and economic conditions;factors impacting the timing of premium rates charged for policies;factors affecting insurance industry competition, including technological innovations;dependence upon the independent agency system; andability to maintain our brand, including our reputation for customer service;dependence upon our relationship with the Exchange and the financial condition of the Exchange, including:the Exchange's ability to maintain acceptable financial strength ratings;factors affecting the quality and liquidity of the Exchange's investment portfolio;changes in government regulation of the insurance industry;litigation and regulatory actions;emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies;emerging claims and coverage issues in the industry; andsevere weather conditions or other catastrophic losses, including terrorism;costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement;ability to attract, develop, retain, and protect talented management and employees;ability to ensure system availability and effectively manage technology initiatives;difficulties with technology, data or network security breaches, including cyber attacks;ability to maintain uninterrupted business operations;compliance with complex and evolving laws and regulations and outcome of pending and potential litigation;factors affecting the quality and liquidity of our investment portfolio; andability to meet liquidity needs and access capital.A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions, or otherwise.
Erie Indemnity Company
Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three months ended
September 30,
Nine months ended
September 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services
$ 846,980
$ 825,275
$ 2,496,258
$ 2,404,177
Management fee revenue - administrative services
19,720
18,831
58,814
54,772
Administrative services reimbursement revenue
197,562
215,694
599,212
638,611
Service agreement revenue
5,655
6,939
17,340
18,675
Total operating revenue
1,069,917
1,066,739
3,171,624
3,116,235
Operating expenses
Cost of operations - policy issuance and renewal services
664,973
642,124
1,994,120
1,918,154
Cost of operations - administrative services
197,562
215,694
599,212
638,611
Total operating expenses
862,535
857,818
2,593,332
2,556,765
Operating income
207,382
208,921
578,292
559,470
Investment income
Net investment income
25,399
21,033
71,546
61,011
Net realized and unrealized investment (losses) gains
(5,450)
1,331
(5,658)
2,312
Net impairment losses recognized in earnings
(72)
(810)
(1,339)
(2,633)
Total investment income
19,877
21,554
64,549
60,690
Other income
5,496
2,286
8,317
8,094
Income before income taxes
232,755
232,761
651,158
628,254
Income tax expense
50,766
49,908
138,401
132,299
Net income
$ 181,989
$ 182,853
$ 512,757
$ 495,955
Net income per share
Class A common stock – basic
$ 3.91
$ 3.93
$ 11.01
$ 10.65
Class A common stock – diluted
$ 3.48
$ 3.50
$ 9.80
$ 9.48
Class B common stock – basic
$ 586
$ 589
$ 1,652
$ 1,597
Class B common stock – diluted
$ 586
$ 589
$ 1,651
$ 1,597
Weighted average shares outstanding – Basic
Class A common stock
46,189,049
46,189,068
46,188,978
46,189,012
Class B common stock
2,542
2,542
2,542
2,542
Weighted average shares outstanding – Diluted
Class A common stock
52,300,931
52,305,599
52,299,936
52,304,797
Class B common stock
2,542
2,542
2,542
2,542
Dividends declared per share
Class A common stock
$ 1.4625
$ 1.365
$ 4.3875
$ 4.095
Class B common stock
$ 219.375
$ 204.75
$ 658.125
$ 614.25
Erie Indemnity Company
Consolidated Statements of Financial Position
(in thousands)
September 30,
2026
December 31,
2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $39,764 and $30,189, respectively)
$ 362,688
$ 345,874
Available-for-sale securities
60,913
33,902
Available-for-sale securities lent
0
3,436
Receivables from Erie Insurance Exchange and affiliates, net
BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company's ("Boise Cascade" or the "Company") (NYSE: BCC) Board of Directors (the "Board") declared a quarterly dividend of $0.23 per share to holders of its common stock. The dividend will be paid on December 16, 2026 to stockholders of record on December 1, 2026.Future dividend declarations, including amount per share, record date and payment date, will be made by the Board and will depend upon, among other things, legal capital requirements and surp.
Omnicell NASDAQ: OMCL reported third-quarter 2026 revenue and non-GAAP EBITDA above the high end of its prior guidance, while executives said the company is preparing to begin shipments of its Titan XT automated dispensing hardware and remains on track for first-half 2027 general availability of its OmniSphere cloud platform.
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Total third-quarter revenue was $308 million, exceeding the company’s guidance range of $301 million to $307 million. Product revenue was approximately $173 million and service revenue was approximately $135 million. Non-GAAP EBITDA reached $45 million, above Omnicell’s forecast of $32 million to $37 million, while non-GAAP earnings per share was $0.58.
Chairman, Chief Executive Officer and Founder Randall Lipps said the results reflected an execution-focused approach and supported the company’s confidence in its autonomous medication-management strategy. He said medication management remains a priority investment for health systems seeking operational efficiency, reliability and relief from staffing pressures.
Titan XT shipments set to begin
President and Chief Operating Officer Nnamdi Njoku said Omnicell was days away from its first Titan XT hardware shipment, consistent with the second-half 2026 schedule previously outlined by the company. Revenue to date has primarily been from the existing XT platform, he said, with only a modest contribution from Titan XT expected in 2026.
Titan XT is designed as a scalable and cybersecure automated dispensing platform, while OmniSphere is intended to provide cloud-based enterprise visibility, workflow tools and actionable insights. Njoku said the company views the hardware and software offerings as complementary and expects them to be evaluated together by customers.
OmniSphere is scheduled for general availability in the first half of 2027. The company expects adoption of the platform to build over subsequent years as customers migrate from locally maintained servers to cloud-native technology.
Omnicell is also providing an upgrade path for existing XT customers that are not yet ready to refresh their cabinet hardware. Through an XTExtend console upgrade, those customers can gain access to OmniSphere without moving immediately to Titan XT, Njoku said.
The company said its sales pipeline has grown since the prior earnings call and includes opportunities across a range of deal sizes. Executives said customer evaluations increasingly involve cross-functional planning, technical architecture, contracting and deployment discussions, reflecting longer decision processes for enterprise-wide offerings.
Leasing and competitive opportunities
Management said leasing has become a meaningful component of Omnicell’s go-to-market strategy, particularly in competitive opportunities. Chief Financial Officer Baird Radford said leasing helps move conversations beyond whether a customer can fund a project and toward clinical capabilities and workforce efficiencies.
Radford estimated that roughly 30% of the marketplace is currently involved in leasing transactions, with the majority associated with customers of Omnicell’s primary competitor. He said leasing activity may be steady but could be uneven depending on the mix of customers and their financing preferences.
Under Omnicell’s sales-type lease structure, revenue is recognized upfront in a manner similar to a capital sale, Radford said. The company expects some initial gross-margin erosion at implementation, followed by interest income over the lease term that flows through product revenue.
Management reiterated full-year product bookings guidance of $425 million to $560 million. Radford said bookings are expected to be weighted toward the end of the year, and the timing of medium and large opportunities can be variable. The lower end of the range reflects uncertainty in customer purchase timing rather than a deterioration in demand, he said.
Executives said the company’s installed base is younger than its competitor’s on average, contributing to current activity among competitive opportunities. However, Njoku said the pace of market-share gains will depend on factors including health systems’ ability to manage implementation changes alongside other priorities.
Margins, cash flow and updated outlook
Radford attributed third-quarter EBITDA outperformance to cost efficiencies, favorable product customer mix, stronger gross margins in both product and service lines, disciplined spending and some expenses shifting into the fourth quarter. Omnicell ended the quarter with $315 million in cash and cash equivalents and generated $20 million of free cash flow.
The company said it has focused on improving operating leverage while maintaining investment in growth and innovation. Radford said EBITDA has grown meaningfully faster than revenue through the first three quarters of 2026, although top-line growth remains modest in the early stages of the refresh cycle.
Omnicell also said it continues to face higher memory-chip and related component costs. Of approximately $6 million in incremental second-half memory costs previously identified, about half affected the third quarter, with the remainder expected in the fourth quarter. The company expects the higher memory-cost environment to continue for the foreseeable future.
For the fourth quarter, Omnicell forecast:
Total revenue of $295 million to $301 million.
Non-GAAP EBITDA of $30 million to $36 million.
Non-GAAP earnings per share of $0.41 to $0.49.
For full-year 2026, the company narrowed its revenue outlook to $1.225 billion to $1.231 billion, including product revenue of $684 million to $687 million and service revenue of $541 million to $544 million. It raised its non-GAAP EBITDA outlook to $187 million to $193 million and its non-GAAP EPS outlook to $2.48 to $2.56.
Omnicell tightened year-end annual recurring revenue guidance to $660 million to $670 million. Radford said the unchanged lower end and slightly reduced upper end reflected greater visibility into the timing of consumables-business growth opportunities. The company also said it anticipates a modest impact on 2026 ARR from developments involving the 340B Drug Pricing Program, primarily related to acute customer dynamics.
About Omnicell (NASDAQ:OMCL)Omnicell, Inc develops medication management and adherence solutions for health care providers, pharmacies and patients. Its technologies are designed to help automate medication dispensing, improve inventory control, support clinical workflows and enhance medication access and adherence across the care continuum.
The company's product portfolio includes automated dispensing cabinets for hospitals and health systems, central pharmacy and intravenous compounding automation, medication packaging and adherence solutions, and software for analytics, inventory management and pharmacy operations.
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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, /PRNewswire/ -- Jack Henry & Associates, Inc.® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal first quarter, ended September 30, 2026, was $17.9 million. Based on these results, the deconversion revenue estimate for fiscal year 2027 is $30 million. For more information about how guidance is developed for deconversion revenue estimates, please see Jack Henry's Current Report on Form 8-K filed with the Securities and Exchange Commission on Aug. 3, 2023.
The majority of deconversion revenue is generated when one of Jack Henry's clients agrees to be acquired by another financial institution, resulting in the termination of the client's contract with Jack Henry. In these circumstances, Jack Henry's recognition of deconversion revenue is driven by factors outside Jack Henry's control, and this revenue does not represent the true operations of Jack Henry's ongoing business of providing services to clients. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.
About Jack Henry & Associates, Inc.®
Jack Henry® (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower more than 7,200 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
