Track market-moving stories before they get noisy

Key Takeaways Accenture spent $4.9 billion on 17 acquisitions in fiscal 2026 and plans $8 billion in fiscal 2027.About $3 billion is tied to Cyber OT acquisitions, with another $5 billion planned for fiscal 2027 deals.Accenture expects acquisitions to contribute 2-2.5 percentage points to fiscal 2027 growth.
Accenture plc (ACN - Free Report) is stepping up its acquisition strategy, with approximately $8 billion in planned investments for fiscal 2027. The aggressive spending underscores its efforts to strengthen industry expertise, expand into emerging markets and accelerate growth. However, integration challenges could complicate the company's expansion ambitions.

ACN's $8B Acquisition PipelineAccenture invested $4.9 billion across 17 acquisitions in fiscal 2026 compared with $1.5 billion across 23 transactions in fiscal 2025. The substantial increase in spending despite fewer transactions highlights its growing appetite for larger acquisitions.

For fiscal 2027, approximately $3 billion of the projected $8 billion relates to Cyber Operational Technology (OT) acquisitions, including Dragos. These transactions shifted from the fourth quarter of fiscal 2026 to the first quarter of fiscal 2027 due to regulatory timing.

Management expects to deploy another approximately $5 billion toward acquisitions during fiscal 2027.

Accenture's Inorganic Growth ExpectationsAccenture's inorganic contribution to growth was approximately 1.5 percentage points in fiscal 2026, down from 3 percentage points in fiscal 2025.

For fiscal 2027, management anticipates inorganic growth of about 2-2.5 percentage points, highlighting the potential benefits of its expanding acquisition portfolio.

The strategy centers on scaling high-growth businesses, strengthening industry-specific capabilities and entering new growth markets. Cybersecurity-related investments could further enhance its enterprise technology offerings.

What Could Limit ACN's Acquisition Upside?Despite promising opportunities, substantial acquisition spending carries integration and execution risks. Delays in closing transactions, higher integration costs and weaker-than-expected synergies could weigh on returns.

Accenture's ability to convert its expanding portfolio into sustained revenue growth and stronger profitability will ultimately determine whether its acquisition strategy translates into meaningful shareholder value.

How Do IBM and Cognizant Compare?International Business Machines Corporation (IBM - Free Report) and Cognizant Technology Solutions Corporation (CTSH - Free Report) are two U.S.-listed competitors pursuing growth through technology investments and acquisitions.

IBM continues to strengthen its hybrid cloud, artificial intelligence, and consulting capabilities through strategic transactions. These investments help IBM address evolving enterprise technology requirements, although integration complexities and competitive pressures remain concerns. IBM's diversified portfolio provides additional growth opportunities.

Cognizant is expanding its digital transformation capabilities through investments in artificial intelligence, cloud computing and industry-specific solutions. Strategic acquisitions help Cognizant broaden its service portfolio and deepen client relationships. However, Cognizant faces intense competition, pricing pressure and uncertainty surrounding discretionary technology spending.

ACN’s Price Performance, Valuation & EstimatesThe stock has gained 56% over the past three months compared with the industry’s 11% rise.

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From a valuation standpoint, ACN trades at a forward price-to-earnings ratio of 14.50X, below the industry average of 18.46X. It carries a Value Score of B.

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The Zacks Consensus Estimate for ACN’s fiscal 2027 earnings has increased slightly over the past 60 days.

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

Key Takeaways FIS stock is down nearly 48% from its 52-week high, but stronger cash flow and margins offer recovery hope.FIS' second-quarter free cash flow surged 220% to $525 million, supporting debt reduction and buybacks.FIS expects $700 million in added free cash flow by 2028, but slowing growth and integration risks persist.
Fidelity National Information Services, Inc.’s (FIS - Free Report) shares have lost nearly 48% from their 52-week high, reflecting concerns over slowing growth and acquisition-related risks. Yet, improving cash generation and margin expansion suggest that a recovery may not require a sharp acceleration in revenues. The key question is whether FIS can translate its expanded capabilities into sustainable earnings growth while strengthening its balance sheet.

The acquisition of Global Payments' Issuer Solutions business has strengthened FIS' position in issuer processing, creating opportunities for cross-selling and integration savings. Encouragingly, its second-quarter 2026 pro forma adjusted EBITDA margin expanded 113 basis points to 41.7%, indicating progress in profitability. The acquisition is expected to add $700 million in adjusted free cash flow by 2028, supporting longer-term earnings growth alongside established banking relationships and recurring revenues.

FIS’ improving cash generation offers another recovery catalyst. Second-quarter free cash flow surged 220% to $525 million. Stronger cash flow could accelerate deleveraging from its $21.2 billion debt burden and support future share repurchases. However, lowered full-year 2026 forecasts for pro forma revenue growth of 4.5-5% and adjusted EBITDA growth of 5.9-6.9% underscore ongoing execution challenges.

A sustained recovery will depend less on rapid revenue growth and more on turning integration benefits into steady margin gains and lower debt. Progress toward its gross leverage target of approximately 2.8 times could strengthen investor confidence and support a valuation reassessment. Nevertheless, slower growth and integration risks may limit upside until the company demonstrates that its improving profitability and cash conversion are sustainable.

How Are Competitors Faring?Other companies operating in the financial technology space are Fiserv, Inc. (FISV - Free Report) and Jack Henry & Associates, Inc. (JKHY - Free Report) .

Fiserv faces near-term growth challenges, with its 2026 organic revenue outlook ranging from a 1% decline to flat growth. Nevertheless, its merchant and financial solutions franchises provide opportunities to stabilize performance through operational improvements. Fiserv's outlook depends on restoring underlying business momentum.

Jack Henry continues to benefit from financial institutions' investments in modern banking infrastructure and recurring technology services. JKHY’s fiscal 2027 EPS outlook of $7.33-$7.38 indicates further earnings growth, supported by ongoing demand for digital banking solutions.

FIS’ Price Performance, Valuation & EstimatesShares of Fidelity National have lost 70.6% over the past year compared with the industry’s 10.5% decline over the same period.

Image Source: Zacks Investment Research

From a valuation standpoint, FIS trades at a forward price-to-earnings ratio of 5.46, much below the industry average of 18.17. FIS carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for FIS’ 2026 earnings is pegged at $6.20 per share, indicating 7.8% year-over-year growth, followed by an estimated 8.5% increase in 2027.

Image Source: Zacks Investment Research

FIS currently has a Zacks Rank #4 (Sell).

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

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: HP (HPQ - Free Report) Headquartered in Palo Alto, CA, HP Inc. is the surviving entity following the November 2015 split of Hewlett-Packard Company into publicly traded entities, Hewlett Packard Enterprise Company and HP Inc. The undivided entity was founded in 1939.

HPQ is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.55; value investors should take notice.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $3.23 per share. HPQ boasts an average earnings surprise of +9.4%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, HPQ should be on investors' short list.

Affirm Holdings (AFRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this operator of digital commerce platform have returned +8%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Affirm Holdings is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +52.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.

The consensus earnings estimate of $1.91 for the current fiscal year indicates a year-over-year change of -65.5%. This estimate has changed +1.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +50.4% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Affirm Holdings.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Affirm Holdings, the consensus sales estimate for the current quarter of $1.21 billion indicates a year-over-year change of +30%. For the current and next fiscal years, $5.51 billion and $6.9 billion estimates indicate +29.4% and +25% changes, respectively.

Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +33%. EPS of $4.62 for the same period compares with $0.2 a year ago.

Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +1300%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Wall Street expects a year-over-year decline in earnings on higher revenues when SLB (SLB - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis world's largest oilfield services company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -10.1%.

Revenues are expected to be $9.29 billion, up 4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.19% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for SLB?For SLB, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.45%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that SLB will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that SLB would post earnings of $0.51 per share when it actually produced earnings of $0.55, delivering a surprise of +7.84%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SLB doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Technology Services industry, SLB (SLB - Free Report) , is soon expected to post earnings of $0.62 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -10.1%. Revenues for the quarter are expected to be $9.29 billion, up 4% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for SLB has been revised 2.2% down to the current level. Nevertheless, the company now has an Earnings ESP of -1.45%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that SLB will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wall Street expects a year-over-year decline in earnings on higher revenues when Rithm (RITM - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis real estate investment trust is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -7.4%.

Revenues are expected to be $1.49 billion, up 34.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.52% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Rithm?For Rithm, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.34%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Rithm will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Rithm would post earnings of $0.5 per share when it actually produced earnings of $0.60, delivering a surprise of +20.00%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Rithm doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerPrimis Financial (FRST - Free Report) , another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $0.45 for the quarter ended September 2026. This estimate points to a year-over-year change of +60.7%. Revenues for the quarter are expected to be $51.21 million, up 24.9% from the year-ago quarter.

The consensus EPS estimate for Primis Financial has been revised 7.9% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.44%.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Primis Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Carvana (CVNA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -7.9%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Commerce industry, which Carvana falls in, has gained 1.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Carvana is expected to post earnings of $0.48 per share, indicating a change of +128.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -4% over the last 30 days.

The consensus earnings estimate of $1.65 for the current fiscal year indicates a year-over-year change of -2.4%. This estimate has changed -1.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.18 indicates a change of +32.2% from what Carvana is expected to report a year ago. Over the past month, the estimate has changed -2.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Carvana is rated Zacks Rank #4 (Sell).

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Carvana, the consensus sales estimate of $7.62 billion for the current quarter points to a year-over-year change of +35%. The $28.87 billion and $37.01 billion estimates for the current and next fiscal years indicate changes of +42.1% and +28.2%, respectively.

Last Reported Results and Surprise HistoryCarvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago.

Compared to the Zacks Consensus Estimate of $6.99 billion, the reported revenues represent a surprise of +5.55%. The EPS surprise was 0%.

Over the last four quarters, Carvana surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Carvana is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Carvana. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Key Takeaways EQT raised its quarterly dividend by 3% to 17 cents per share, bringing its annualized payout to 68 cents.EQT's dividend is payable on Dec. 1, 2026, to shareholders of record as of Nov. 4, 2026.EQT's latest dividend hike extends its pattern of gradually increasing shareholder payouts.
EQT Corporation (EQT - Free Report) has announced a 3% increase in its quarterly cash dividend to 17 cents per common share. The latest hike brings EQT's annualized dividend to 68 cents per share, reflecting its commitment to rewarding shareholders.

The dividend is payable on Dec. 1, 2026, to shareholders of record as of Nov. 4, 2026.

EQT Continues Its Dividend Growth MomentumEQT's latest announcement follows earlier increases in shareholder distributions. The leading U.S. natural gas producer’s quarterly dividend stood at 16.5 cents per share in the second quarter of 2026, up from 15.75 cents in the prior-year period.

The increases demonstrate EQT's commitment to gradually enhancing shareholder payouts.

Strong Cash Generation Supports EQT's DividendEQT generated $330 million in free cash flow attributable to the company during the second quarter of 2026. Its net debt declined to $5.5 billion, strengthening financial flexibility and supporting future capital allocation priorities.

What Supports EQT’s Future Dividend Growth?EQT's low-cost operations, growing natural gas demand and expanding liquefied natural gas exposure offer opportunities to improve future cash generation.

The company's integrated upstream and midstream operations, along with its focus on disciplined spending, further support sustainable shareholder distributions.

EQT’s Zacks Rank & Key PicksEQT currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the energy sector that reward shareholders through regular dividends include Equinor ASA (EQNR - Free Report) , Shell plc (SHEL - Free Report) and Chevron Corporation (CVX - Free Report) .  EQNR, SHEL and CVX currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

While EQT recently increased its quarterly dividend to 17 cents per share, Equinor maintains a quarterly dividend of 39 cents per share. Similarly, Shell and Chevron have declared quarterly dividends of 39.06 cents per ordinary share and $1.78 per share, respectively.

The business models of EQT, EQNR, SHEL and CVX depend on favorable commodity prices and operating efficiency to support cash generation and sustain shareholder distributions.

Southern Co. (SO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this power company have returned +2.8%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Utility - Electric Power industry, which Southern Co. falls in, has gained 1%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Southern Co. is expected to post earnings of $1.70 per share for the current quarter, representing a year-over-year change of +6.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.4%.

The consensus earnings estimate of $4.59 for the current fiscal year indicates a year-over-year change of +6.7%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.92 indicates a change of +7% from what Southern Co. is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Co. is rated Zacks Rank #3 (Hold).

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Southern Co., the consensus sales estimate for the current quarter of $8.42 billion indicates a year-over-year change of +7.7%. For the current and next fiscal years, $31.02 billion and $32.91 billion estimates indicate +5% and +6.1% changes, respectively.

Last Reported Results and Surprise HistorySouthern Co. reported revenues of $6.98 billion in the last reported quarter, representing a year-over-year change of +0.1%. EPS of $1.13 for the same period compares with $0.91 a year ago.

Compared to the Zacks Consensus Estimate of $7.36 billion, the reported revenues represent a surprise of -5.18%. The EPS surprise was +11.88%.

Over the last four quarters, Southern Co. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Southern Co. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Co.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Vertex Pharmaceuticals (VRTX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this drugmaker have returned -1.5%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Vertex falls in, has lost 0.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Vertex is expected to post earnings of $4.92 per share for the current quarter, representing a year-over-year change of +2.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.

For the current fiscal year, the consensus earnings estimate of $18.9 points to a change of +2.7% from the prior year. Over the last 30 days, this estimate has changed +0.4%.

For the next fiscal year, the consensus earnings estimate of $20.61 indicates a change of +9.1% from what Vertex is expected to report a year ago. Over the past month, the estimate has changed +0.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertex is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Vertex, the consensus sales estimate of $3.4 billion for the current quarter points to a year-over-year change of +10.6%. The $13.22 billion and $14.67 billion estimates for the current and next fiscal years indicate changes of +10.1% and +11%, respectively.

Last Reported Results and Surprise HistoryVertex reported revenues of $3.33 billion in the last reported quarter, representing a year-over-year change of +12.5%. EPS of $4.73 for the same period compares with $4.52 a year ago.

Compared to the Zacks Consensus Estimate of $3.23 billion, the reported revenues represent a surprise of +3.32%. The EPS surprise was -1.25%.

Over the last four quarters, Vertex surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Vertex is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertex. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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

If you purchased or acquired securities in Celsius Holdings between February 21, 2025 and June 3, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

New York, New York--(Newsfile Corp. - October 16, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Celsius Holdings, Inc. ("Celsius Holdings" or the "Company") (NASDAQ: CELH) and reminds investors of the November 3, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

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

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Defendants' products failed to adequately disclose the cardiac risks of consuming Alani Nu products; (ii) by marketing Alani Nu drinks to consumers under the age of 18, the Company was marketing its products to individuals who were particularly susceptible to known health risks posed by those products; (iii) the foregoing created a non-speculative risk that Alani Nu consumers would suffer potentially fatal adverse health events; (iv) the foregoing, once revealed, was likely to have a significant negative impact on the Company's business and reputation; and (v) as a result, Defendants' public statements were materially false and misleading at all relevant times.

On April 9, 2026, NBC News and local news outlet MyRGV reported that the family of 17-year old Texas cheerleader Larissa Rodriguez had filed a wrongful death lawsuit against distributors of Alani Nu, alleging that Rodriguez died from an enlarged heart caused by drinking Alani Nu energy drinks and that the drinks "had inadequate warnings about the serious cardiac risks" of drinking Alani Nu. On this news, Celsius's stock price fell $1.52 per share, or 4.18%, to close at $34.86 per share on April 10, 2026.

On June 4, 2026, Texas Attorney General Ken Paxton announced an investigation into Celsius over concerns that its high-caffeine energy drinks are being marketed to children and teens, specifically examining whether Celsius and its Alani Nu subsidiary had violated the Texas Deceptive Trade Practices Act by misrepresenting the safety of their products. On news of the investigation, Celsius's stock price fell $2.26 per share, or 7.53%, to close at $27.75 per share on June 4, 2026.

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

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

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

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

Frequently Asked Questions (FAQ) for Investors Regarding the Celsius Holdings Securities Class Action Lawsuit:

What is the Celsius Holdings securities fraud lawsuit about?

A securities fraud class action lawsuit has been filed against Celsius Holdings, Inc. (NASDAQ: CELH) on behalf of investors who purchased the company's securities during the Class Period. The lawsuit alleges that Defendants made false and/or misleading statements and failed to disclose that Alani Nu products did not adequately warn consumers of cardiac risks associated with their consumption, and that the company allegedly marketed those products to individuals under the age of 18 who were particularly susceptible to those known health risks. The complaint further alleges that these undisclosed facts created a non-speculative risk that Alani Nu consumers could suffer potentially fatal adverse health events. On April 9, 2026, news reports emerged about a wrongful death lawsuit filed by the family of a 17-year-old Texas cheerleader who allegedly died from an enlarged heart attributed to Alani Nu consumption, causing Celsius's stock to decline approximately 4.18%. The allegations were compounded on June 4, 2026, when the Texas Attorney General announced an investigation into whether Celsius and its Alani Nu subsidiary violated the Texas Deceptive Trade Practices Act by misrepresenting product safety, causing a further stock decline of approximately 7.53%.

Who may be eligible to participate in the lawsuit?

Investors who purchased or otherwise acquired securities of Celsius Holdings, Inc. (NASDAQ: CELH) on the NASDAQ exchange between February 21, 2025 and June 3, 2026, inclusive, may be eligible to participate in this class action lawsuit. Eligibility to participate is not limited to those who apply to serve as lead plaintiff; any investor who purchased Celsius Holdings securities during the Class Period and suffered losses may potentially share in any recovery obtained. Investors are encouraged to review their trading records to determine whether their purchases fall within the defined Class Period. Those with questions about their eligibility are encouraged to consult with counsel to evaluate their options.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff is a court-appointed representative who serves on behalf of all class members and plays an active role in overseeing the litigation, including working with counsel to direct the prosecution of the case. Under the Private Securities Litigation Reform Act, any member of the proposed class may move the court for appointment as lead plaintiff, and the court generally appoints the movant with the largest financial interest in the relief sought who also satisfies applicable legal requirements. The deadline to file a motion for appointment as lead plaintiff is the lead plaintiff deadline applicable to this case, and investors wishing to be considered for this role must act before that date. Importantly, investors are not required to seek appointment as lead plaintiff in order to participate in the lawsuit or to share in any monetary recovery that may result. Those interested in the lead plaintiff role are encouraged to consult with qualified securities litigation counsel promptly to allow sufficient time to prepare and file the necessary motion.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Celsius Holdings securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319248

Source: Faruqi & Faruqi LLP

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Truist Financial Corporation (TFC - Free Report) came out with quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -0.86%. A quarter ago, it was expected that this company would post earnings of $1.08 per share when it actually produced earnings of $1.23, delivering a surprise of +13.89%.

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

Truist Financial, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $5.19 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $5.19 billion. The company has topped consensus revenue estimates two times over the last four quarters.

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

Truist Financial shares have lost about 5.4% since the beginning of the year versus the S&P 500's gain of 13.1%.

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

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

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

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

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $5.29 billion in revenues for the coming quarter and $4.67 on $21.03 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Northern Trust Corporation (NTRS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 21.

This company is expected to post quarterly earnings of $2.86 per share in its upcoming report, which represents a year-over-year change of +24.9%. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level.

Northern Trust Corporation's revenues are expected to be $2.26 billion, up 11.8% from the year-ago quarter.

Independent Director Douglas Grimm Appointed Interim CEO; Board Initiates Search for Permanent CEOLeadership Team Focused on Customer-Led Product Innovation, Margin Improvement, Free Cash Flow and Return on Invested Capital Preliminary Third Quarter Fiscal 2026 Results Below Expectations; Updates Fiscal 2026 Outlook for Divestiture of Marucci and Operating Performance; Schedules Earnings Conference Call for November 5, 2026 DULUTH, Ga., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today announced that its Board of Directors (the “Board”) has decided to make a leadership change. Effective October 16, 2026, the Board has appointed independent director Douglas (“Doug”) Grimm as Interim Chief Executive Officer, and Mike Dennison is stepping down from his role as CEO and a member of the Board.

The Board has retained Heidrick & Struggles, a leading executive search firm, to assist in identifying a permanent CEO. The search will be led by Chair Jean Hlay and directors Tom Duncan and Doug Grimm. Mr. Grimm, who is not a candidate for the permanent CEO role, will step down from the Audit Committee, but will remain on the Board and continue to serve on the Transformation Committee. Alan Bazaar will succeed Mr. Grimm as Chair of the Audit Committee. The Company’s leadership team, including Chief Financial Officer Dennis Schemm, who leads the Company’s profit optimization program, will continue to drive customer-led product innovation and growth.

“Doug is an accomplished executive with more than four decades of operating experience in the automotive and industrial sectors, and we are confident he is the right interim leader to accelerate execution in our businesses,” said Jean Hlay, Chair of the Board. “He has not only led multiple, successful transformations but also brings a deep understanding of our company’s heritage and the operational improvements we are executing on to reach our full potential. The Board and I look forward to working with him in this new capacity while we conduct a rigorous search for a permanent leader.”

“FOX has earned its place as a leader in the powered vehicle and bike markets through an unwavering commitment to innovating performance-defining products for professional athletes and enthusiasts,” said Mr. Grimm. “It is an honor to serve as Interim CEO at this important moment in FOX’s trajectory. Through my work on the Transformation Committee, I have seen firsthand how FOX’s talented team is actively working to deliver the best products and improve our financial position. I look forward to working closely with Dennis and our leadership team to execute on our strategy and advance a culture of excellence that our customers rely on.”

“On behalf of the Board, I also want to thank Mike for his many contributions to FOX over the last seven years,” added Ms. Hlay. “Mike helped build FOX into a precision engineering company with strong brands and great products. His focus on engineering and innovation earned the loyalty of our OEM partners, athletes and enthusiasts who depend on our products.”

“It has been a privilege to lead FOX since 2019 and navigate periods of significant change in partnership with such a talented team,” said Mr. Dennison. “I am proud of what we accomplished together and look forward to supporting Doug and the team through the transition.”

Doug Grimm Bio

Mr. Grimm is a seasoned operator with more than 40 years of experience in the automotive and industrial tech sectors, including as President and Chief Operating Officer of Metaldyne Performance Group Inc., an automotive metals supplier with 60 manufacturing plants in 13 countries; as Chairman of Electrical Components International (ECI), a global manufacturer of electrical distribution systems; and as Founder, Chairman and CEO of Grede Holdings LLC, a leading manufacturer of safety-critical iron castings. Over his career, he led business transformations, integrations and more than 40 transactions. He currently serves as Chairman of the Board of Blue Bird Corporation (NASDAQ: BLBD) and as a member of the Board of Directors of Lucid Group, Inc. (NASDAQ: LCID).

Preliminary Third Quarter Fiscal 2026 Results

Based on preliminary unaudited information, the Company expects to report the following for the third quarter of fiscal 2026 ended October 2, 2026:

Net sales of $336 million to $340 million, compared to guidance of $355 million to $380 million. Net sales include approximately $33 million from Marucci Sports through the September 25, 2026 closing of the divestiture, compared to approximately $46 million assumed in guidance for the full quarter.Adjusted EBITDA of $38 million to $42 million, excluding approximately $12 million of IEEPA tariff refunds received in the quarter, compared to guidance of $46 million to $54 million, which did not include any tariff refunds. Third quarter results were below the Company’s expectations, primarily due to lower sales and margin at Marucci Sports, which did not deliver to expectations prior to the closing; lower than expected sales and margins in the Powered Vehicles Group driven by a supply disruption and the associated higher operating costs, and unfavorable mix; operating challenges within the Aftermarket Applications Group in its upfit business; and to a lesser extent, softer than expected bike sales in the Specialty Sports Group.

The preliminary results above are based on information available to the Company as of the date of this release and are subject to completion of the Company’s quarter-end financial close procedures. Actual results may differ from these preliminary results. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, the Company’s independent registered public accounting firm does not express an opinion or any other form of assurance with respect thereto. Complete results will be included in the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2026.

Fourth Quarter and Fiscal 2026 Outlook

The Company is lowering its outlook for the fourth quarter of fiscal 2026:

Net sales of $287 million to $313 million, in line with prior underlying guidance for its remaining core businesses, excluding Marucci Sports.Adjusted EBITDA of $23 million to $29 million, excluding Marucci Sports. Relative to prior implied assumptions for the fourth quarter, the updated adjusted EBITDA assumption reflects the divestiture of Marucci Sports, a continuation of the supply disruption and higher than anticipated inflation in steel, aluminum and freight costs in the Powered Vehicles Group, and within the Aftermarket Applications Group lower chassis availability and continued operational challenges in the upfit business; at the segment level, adjusted EBITDA margin for the Powered Vehicles Group and Aftermarket Applications Group is expected to be approximately flat versus the fourth quarter of 2025. The Company is lowering its fiscal 2026 outlook to reflect preliminary third quarter results, the divestiture of Marucci Sports on September 25, 2026, and updated expectations for the fourth quarter. For fiscal 2026, the Company now expects:

Net sales of $1.35 billion to $1.38 billion, compared to prior guidance of $1.42 billion to $1.47 billion. Approximately $63 million of the reduction reflects Marucci Sports, including approximately $50 million of fourth quarter net sales included in prior guidance.Adjusted EBITDA of $140 million to $150 million, excluding approximately $14 million of IEEPA tariff refunds received in the second and third quarters, compared to prior guidance of $176 million to $196 million.Adjusted EBITDA, including IEEPA tariff refunds, in the range of $154 million to $164 million. The outlook reflects input costs at current levels, including the aluminum, steel and freight inflation described above, and assumes no further increases. The Company has received the majority of the IEEPA tariff refunds it expects, and the outlook does not include any additional refunds.

FOX FACTORY HOLDING CORP.
NET SALES EXCLUDING MARUCCI SPORTS
(in millions)
(unaudited)  Fiscal
Prior outlook
Preliminary / updated
  2025 LowHighLowHighThird quarter     Net sales, as reported / outlook$376 $355 $380 $336 $340 Less: Marucci Sports (49) (44) (48) (33) (33)Net sales excluding Marucci Sports$327 $311 $332 $303 $307 Fiscal year     Net sales, as reported / outlook$1,467 $1,420 $1,470 $1,350 $1,380 Less: Marucci Sports (186) (172) (180) (113) (113)Net sales excluding Marucci Sports$1,281 $1,248 $1,290 $1,237 $1,267                  Marucci Sports net sales for fiscal 2025 and the first six months of fiscal 2026 are as presented in the unaudited pro forma condensed consolidated financial information filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on September 29, 2026. Third quarter fiscal 2025 Marucci Sports net sales are derived from the Company’s internal records. Fiscal 2026 amounts include Marucci Sports net sales through the September 25, 2026 closing of the divestiture. Net sales excluding Marucci Sports is a non-GAAP financial measure presented to help investors compare the Company’s net sales with prior periods on a consistent basis. Amounts may not sum due to rounding.

Available Information

Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the Investor Relations section of its website (https://investor.ridefox.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

About Fox Factory Holding Corp. (NASDAQ: FOXF)

Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Method Race Wheels, and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers (OEMs). The Company also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels.

FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.

Non-GAAP Financial Measures

This release includes adjusted EBITDA, adjusted EBITDA excluding IEEPA tariff refunds and net sales excluding Marucci Sports, which are non-GAAP financial measures. Net sales excluding Marucci Sports is reconciled to net sales, the most directly comparable GAAP measure, in the net sales table above, and adjusted EBITDA excluding IEEPA tariff refunds is reconciled to adjusted EBITDA in the preliminary results and outlook above. The Company has not provided a reconciliation of preliminary third quarter adjusted EBITDA or fiscal 2026 adjusted EBITDA outlook to net income, the most directly comparable GAAP measure, because the Company has not completed its quarter-end financial close procedures and certain reconciling items cannot be reasonably predicted without unreasonable effort. The Company will provide a reconciliation of third quarter adjusted EBITDA to net income in its third quarter fiscal 2026 earnings release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements include, but are not limited to, statements regarding the Company’s leadership transition and the search for a permanent Chief Executive Officer; preliminary financial results for the third quarter of fiscal 2026; the Company’s outlook for the fourth quarter and fiscal 2026, including the assumptions underlying the outlook regarding input costs and IEEPA tariff refunds; the expected impact of the divestiture of Marucci Sports on the Company’s future results; the Company’s profit optimization program and its ability to drive customer-led product innovation and growth; and the timing of the Company’s third quarter earnings release and conference call. These statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks include, but are not limited to: the ability to successfully manage the leadership transition and identify and retain a permanent Chief Executive Officer; potential disruption to the business, management, employees, customers or OEM partners resulting from the leadership transition; adjustments to preliminary results arising from the completion of the Company’s financial close procedures; the impact of the divestiture of Marucci Sports on the Company’s future results of operations, including the loss of its net sales and earnings contribution; supply disruptions, including in the Powered Vehicles Group, and the availability of chassis and aluminum; inflation in aluminum, steel and freight costs and the assumption that input costs remain at current levels; the amount, timing and retention of IEEPA tariff refunds; operational challenges and higher expenses in the Aftermarket Applications Group’s upfit business; softer than expected bike demand in the Specialty Sports Group; the Company’s ability to achieve the objectives of its profit optimization program; the Company’s decision and ability to market and execute potential strategic transactions, which depend on, among other factors, third-party interest, valuation considerations and regulatory requirements; the Company’s ability to maintain its suppliers for materials, component parts and product without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow, ability to maintain profitability, and ability to remain in compliance with financial covenants; the Company’s ability to monitor the effects of new technological applications, such as artificial intelligence; the Company’s ability to protect against cybersecurity incidents and disruptions or failures of our information technology systems; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies, including regulations or orders related to the import and export of industry products; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases or public health issues causing disruptions in the U.S. and global economy and disrupting the business activities and operations of the Company’s customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to currency exchange rate fluctuations; the loss of key customers; our ability to accurately forecast demand for our products; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation or regulatory or other governmental inquiries, and the impact of changing emissions and other regulations in the various jurisdictions in which our products are produced, used, and/or sold; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences and effectively compete against competitors; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; product recalls and product liability claims; the impact of tension in China-Taiwan relations, the war in Iran, or similar events on the Company’s business, operations or supply chain; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate changes in response thereto; changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); our ability to mitigate increasing input costs through pricing or other measures; and other risks and uncertainties described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2026, filed with the Securities and Exchange Commission on February 27, 2026, and in its Quarterly Reports on Form 10-Q and other subsequent filings. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements. Forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update or revise any forward-looking statement, except as required by law.

CONTACT:
Investors:
Jeff Sonnek
646-277-1263
[email protected]

Media:
[email protected]

Key Takeaways HAE shares jumped 149.3% in a year, outperforming the industry's 26.8% decline and S&P 500's 18% gain.
HAE's Plasma and MedSurg revenues grew 7.2% and 6%, respectively, in the first quarter of fiscal 2027.
HAE raised fiscal 2027 revenue growth guidance to 5-8%, though high debt and competition remain concerns.

Haemonetics (HAE - Free Report) has witnessed strong momentum over the past year. Shares of the company have risen 149.3%, outperforming the industry’s 26.8% decline. The S&P 500 composite has increased 18% during the same time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.

Haemonetics provides blood management solutions to customers encompassing blood and plasma collectors, hospitals and health care providers globally.  The company operates through two global reportable segments — Apheresis and MedSurg. Apheresis comprises Plasma and Other. 

Plasma includes plasma collection devices and disposables, donor management software, anticoagulants and saline sold to plasma customers. Other includes blood collection and processing devices and disposables. MedSurg comprises Interventional Technologies and Blood Management Technologies. Interventional Technologies includes Vascular Closure, Sensor Guided Technologies and Esophageal Protection, while Blood Management Technologies includes Hemostasis Management, Cell Salvage and Transfusion Management.

Factors Favoring HAE’s Share Price GrowthHaemonetic’s share price is trending upward, prompted by strong demand for its Plasma franchise.  In the first quarter of fiscal 2027, Plasma revenues increased 7.2% on a reported basis and 8.2% organically to $155.5 million. This growth reflected double-digit disposable rise globally, including mid-20% growth in North American disposables and double-digit growth in Europe, supported by prior U.S. share gains, new international share gains and higher collection volumes. Persona PLUS is extending the NexSys PCS platform through a firmware upgrade that increases plasma yield and center productivity. 

Investors are also impressed with the growth of MedSurg business. In the fiscal first quarter, MedSurg revenues increased 6.0% on a reported basis and 5.9% organically to $148.1 million. Blood Management Technologies grew 8.1% organically, with double-digit growth in Hemostasis and Transfusion Management partly offset by slower Cell Salvage capital upgrades. 

Image Source: Zacks Investment Research

Transfusion Management continued to benefit from software implementations and faster customer activations, expanding the recurring revenue base. Meanwhile, Interventional Technologies returned to growth, increasing 2.8% organically as Vascular Closure grew in the low double digits. VASCADE MVP and MVP XL benefited from renewed U.S. momentum, broader utilization and the expanded MVP XL indication for sheaths up to 17F outer diameter. 

Hemostasis Management remains a principal product line within Blood Management Technologies. The portfolio includes TEG 5000, TEG 6s and related hemostasis analyzers. In the first quarter of fiscal 2027, Hemostasis delivered double-digit growth, supported by mid-teens disposable growth, higher utilization across the installed base and continued share gains. The HN cartridge is expanding clinical applications and extending the company’s reach in international markets. Continued adoption of TEG 6s and broader cartridge use should sustain the franchise’s contribution to Blood Management Technologies growth.

Against this backdrop, Haemonetics raised fiscal 2027 reported revenue growth guidance to 5-8% from 4-7%. Organic revenue growth is now projected to be 4-7%, up from the prior 3-6% guidance, while the expected impact from the 53rd week remains roughly 2%.

Factors That May Offset HAE’s GainsFrom a solvency viewpoint, Haemonetics ended the fiscal first quarter with $223.4 million in cash and cash equivalents and $5 million in short-term debt. The long-term debt at the end of the quarter was $1.17 billion, indicating a highly leveraged balance sheet. Net leverage was 2.69x EBITDA. The company repaid $50 million of revolver borrowings during the quarter and another $50 million after the quarter ended. Despite progress on deleveraging, the debt load remains sizable and may constrain capital allocation flexibility.

Additionally, HAE operates in a competitive environment, both for manual and automated systems. Slower-than-expected product adoption by customers, especially the American Red Cross, might reduce the company’s revenues and profit.

A Look at HAE’s EstimatesThe Zacks Consensus Estimate for 2026 earnings per share has remained unchanged at $5.29 in the past 30 days.

The company has an estimated long-term EPS growth rate of 9.4%, in line with the industry. 

Stocks to ConsiderSome better-ranked stocks in the broader medical space are Phibro Animal Health (PAHC - Free Report) , Abbott (ABT - Free Report) and Globus Medical (GMED - Free Report) .

Phibro Animal Health has an earnings yield of 9.3% compared with the industry’s 2.7% yield. Shares of the company have risen 2.6% against the industry’s 27.9% decline over the past year. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 18.4%. 

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

Abbott, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 5.6% compared with the industry’s 2.6% yield. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 0.8%. ABT shares have plunged 22.5% compared with the industry’s 27.9% decline over the past year.

Globus Medical, currently carrying a Zacks Rank #2, has an earnings yield of 6.8% against the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 32.6% compared with the industry’s 7.3% growth over the past year.

Dulux paint maker AkzoNobel (AKZO.AS) and US peer Axalta ​Coating Systems (AXTA.N) have offered remedies in ‌an effort to secure EU antitrust approval for their $25 billion merger, a European Commission ​filing showed on Friday.

The companies put ​in their offer on Thursday, automatically ⁠triggering a 10 working day extension ​of the Commission's deadline to November. The ​EU competition enforcer did not provide details of the concessions in line with its policy.

The companies will ​offer to sell AkzoNobel's vehicle refinish ​business to address competition concerns and expect to ‌secure ⁠EU clearance at the end of the preliminary review, sources told Reuters last week.

The Commission is expected to seek feedback ​from rivals ​and ⁠customers before deciding whether to give the deal the green ​light, demand more or open a ​full-scale ⁠investigation.

Axalta exclusively makes coatings, with a strong presence in the US market. BASF's (BASFn.DE) ⁠coatings ​business, Nippon Paint (4612.T), Sherwin-Williams (SHW.N) ​and Kansai Nerolac (KANE.NS) compete with AkzoNobel and Axalta.

Key Takeaways Harmony Biosciences shares rise 27.6% in six months, fueled by strong Wakix demand and pipeline progress.Wakix sales climb 24% to $476.7 million in the first half of 2026, supporting $1.0-$1.04B revenue target.Pipeline advances in BP-205 and EPX-100 offer growth opportunities. The going has been strong for Harmony Biosciences Holdings, Inc.  (HRMY - Free Report) over the past six months. Shares of this pharmaceutical company have surged 27.6% over the said time frame against the industry’s decline of 2.2%. The stock has also outperformed the sector and the S&P 500 Index during this period.

HRMY’s robust rally has been driven by better-than-expected quarterly results, which can be attributed to robust demand for lead drug Wakix (pitolisant) and encouraging pipeline progress.

HRMY Outperforms Industry, Sector and S&P 500 Index
Image Source: Zacks Investment Research

Against this backdrop, a closer evaluation of the company’s strengths and weaknesses can help assess its attractiveness as an investment opportunity.

Wakix Drives HRMY’s Strong Revenue GrowthSustained demand for lead drug Wakix, approved for excessive daytime sleepiness in adults with narcolepsy, is driving top-line growth for the company.

Sales of the drug totaled $476.7 million in the first half of 2026, up 24% from the first half of 2025.

The average patient count rose by 450 to 8,950 in the second quarter. The growth can be attributed to strong demand for Wakix, effective commercial execution and the drug’s broad clinical utility.

With approximately 80,000 diagnosed narcolepsy patients in the United States, Wakix has significant market potential to support continued revenue growth.

HRMY remains on track to achieve its 2026 Wakix revenue guidance of $1.0-$1.04 billion.

Planned franchise expansions include gastro-resistant pitolisant tablets, with a potential launch in the first half of 2027, and high-dose pitolisant, which is being evaluated in phase III studies for narcolepsy and idiopathic hypersomnia.

Additional opportunities include a phase III study on Wakix in Prader-Willi syndrome, with top-line data expected in mid-2027.

These initiatives could broaden pitolisant's reach, extend its commercial life and support future revenue growth.

However, patent litigation and potential generic competition remain important risks.

Pipeline Progress Offers Additional Growth OpportunitiesBeyond Wakix, Harmony is advancing a diversified pipeline that could create new growth drivers.

BP-205, an investigational orexin-2 receptor agonist, is a key asset, with phase I single ascending-dose data demonstrating favorable pharmacokinetics, a half-life of approximately 25 hours and a generally favorable safety and tolerability profile.

Its potential for rapid onset and once-daily dosing supports further development, with multiple ascending-dose data expected in the fourth quarter of 2026 and phase II studies across multiple central nervous system indications scheduled to begin in mid-2027.

Meanwhile, EPX-100 (clemizole hydrochloride) is being evaluated in phase III studies for Lennox-Gastaut syndrome and Dravet syndrome, with top-line data expected in the first half of 2027.

Harmony also has $962.5 million in cash, cash equivalents and investments, providing financial flexibility to fund pipeline development and pursue business development opportunities. These programs offer meaningful long-term upside, although their commercial potential will depend on clinical outcomes and regulatory approvals.

HRMY: Valuation & EstimatesGoing by the price/sales ratio, shares currently trade at 1.98X forward sales, lower than its mean of 2.51X and the biotech industry’s value of 2.06X.

Image Source: Zacks Investment Research

The bottom-line estimate for 2026 has remained unchanged and the same for 2027 has increased 8 cents to $4.06, over the past 60 days.

Image Source: Zacks Investment Research

Invest in HRMYStrong Wakix growth, expanding pitolisant franchise, promising pipeline and solid liquidity position should maintain momentum for HRMY.

The company’s reaffirmed full-year revenue guidance of $1.0-$1.04 billion highlights Wakix’s commercial strength.

Planned launches of new pitolisant formulations and potential label expansions could further extend the franchise’s growth trajectory, while pipeline candidates BP-205 and EPX-100 offer additional long-term revenue opportunities.

HRMY’s ability to generate substantial revenues and earnings from its marketed product provides a foundation for continued investment in new growth opportunities, despite patent litigations.

However, competition in the narcolepsy market remains significant. Jazz Pharmaceuticals (JAZZ - Free Report) competes with Xywav, while Alkermes (ALKS - Free Report) markets Lumryz (following the acquisition of Avadel Pharmaceuticals plc), an extended-release sodium oxybate treatment for narcolepsy.

JAZZ reported strong growth in Xywav, with approximately 17,125 active patients on treatment at the end of the second quarter of 2026. Of these, around 11,275 had narcolepsy and 5,850 had idiopathic hypersomnia.

ALKS’s pipeline also includes alixorexton, Alkermes' novel, investigational, oral, selective orexin 2 receptor agonist in development for the treatment of narcolepsy type 1, narcolepsy type 2 and idiopathic hypersomnia.

Nevertheless, continued Wakix growth and the potential expansion of its product portfolio provide a favorable foundation for long-term growth. We recommend the stock to prospective investors, while existing shareholders should hold their positions, as we believe the company has further growth potential.

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

NEW YORK, Oct. 16, 2026 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Hims & Hers Health, Inc. (“Hims & Hers” or the “Company”) (NYSE: HIMS) on behalf of investors that purchased or otherwise acquired Hims & Hers securities between August 4, 2025 and July 29, 2026 (the “Class Period”).

CLICK HERE TO JOIN THE CASE

If you are an investor in Hims & Hers and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than November 2, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On July 29, 2026, the Federal Trade Commission (“FTC”), the People of the State of California through Los Angeles County Counsel and the Utah Division of Consumer Protection sued Hims & Hers in the Northern District of California. According to the FTC, the action alleges that Hims & Hers fails to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is “right for them.” The FTC also alleges that the company has made it difficult for consumers to cancel subscriptions and misled consumers about keeping their health information private. The FTC alleges that Hims shared consumers’ health information with Meta, Snap and other third parties.

Following this news, the price of Hims & Hers stock fell $4.32 per share, or 14.73%, to close at $25.00 per share on July 29, 2026.

Based on the FTC allegations, the complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors, including that (1) the Company shared consumers’ health information with third-party advertising platforms; (2) the Company charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is “right for them;” (3) the foregoing conduct subjected the Company to regulatory scrutiny; (4) as a result of the foregoing, the Company was reasonably likely to incur fees and penalties; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

CONTACT:

Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
[email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1501
Oakland, California 94612
(415) 772-4704
[email protected]

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/hims-hers-health-inc-class-action-investigation-learn-more-now/

ARK Invest loaded up on CoreWeave stock two sessions in a row while the company's bondholders were sending a very different signal about the AI cloud provider's future.

Cathie Wood’s ARK Invest bought 188,665 shares of CoreWeave (NASDAQ:CRWV) on Wednesday, October 14, 2026. It bought another 192,566 shares on Thursday, October 15, 2026. That was the same day CoreWeave’s five-year credit default swaps hit a record intraday level of 1,194.5 basis points.

So stock buyers and lenders are looking at the same company and reaching opposite conclusions, with equity buyers seeing an AI cloud provider with sold-out capacity. Credit investors are pricing in a real chance that the debt paying for that capacity never gets fully repaid.

The stock fell 15.46% on Wednesday to $65.78. It rose 5.94% on Thursday to $69.69, then slipped to $68.10 after hours. It has lost 49.95% over the past year.

What ARK Disclosed and What It Left Out The Wednesday trades are disclosed fund activity. The ARK Innovation ETF (NYSEARCA:ARKK) bought 145,319 shares, and the ARK Next Generation Internet ETF (NYSEARCA:ARKW) bought 43,346, worth about $12.4 million at the close.

ARK also sold 31,432 shares of Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) that day, worth about $6.3 million. The dollar value of the Thursday buy was not reported.

CoreWeave’s market value is $38.44 billion, so these purchases show conviction but are far too small to hold up the price.

Why Bondholders Are Pricing Equity-Like Risk A credit default swap is insurance against a borrower defaulting, priced as a yearly cost per dollar covered. Thursday’s level means a more than 60% chance of default within five years. That number is derived purely from market prices.

The bonds tell the same story. The 9% notes due 2031 fell about 3.3 cents to 79.9 cents on the dollar, which drove the yield to 15.6%. The 9.75% notes due 2031 fell to roughly 78.65 cents, yielding 16.2%.

Credit markets often react first because a bondholder can earn at most full repayment plus interest, so without extra upside, lenders focus on what could go wrong.

Interest Costs Now Decide Whether CoreWeave Can Earn Money CoreWeave owes about $52 billion in debt and leases. Its second-quarter net interest expense of $640 million exceeded its net loss of $626 million. Financing costs decide whether this business makes money, and that depends on customers paying on time and lenders willing to refinance.

Co-founder Brannin McBee supported the borrowing and said nearly all of CoreWeave’s 2027 capacity was sold. That is the company’s view. Sold capacity only helps if the cash comes in before the debt payments come due.

The company owes more than its stock is worth. Because of that, small changes in the business’s overall value cause big swings in the share price. That explains why ARK likes the stock. It also explains D.A. Davidson analyst Gil Luria’s downside case, in which shareholders “could face an equity wipeout” if AI spending stalls.

What Credit Markets Signal for CRWV Stockholders The credit picture argues for caution. Bonds near 80 cents and record default-swap prices remind us that common shareholders get paid last, after bondholders and landlords.

Thursday’s bounce happened on the same day credit hit its worst level. When a stock rises while its bonds fall, we treat that as a warning.

Microsoft (NASDAQ:MSFT) carries far less balance-sheet risk than CoreWeave among AI infrastructure companies. Its debt-to-equity ratio is 0.29, compared with CoreWeave’s 8.94, and it earns enough to cover its interest more than 50 times. Microsoft offers less upside but much less default risk.

If the 9% notes due 2031 climb back toward 90 cents and default-swap prices fall well below 1,194.5 basis points, lenders are relaxing. The case for the stock gets better. Until that happens, the bond market is the better guide.

Contact [email protected] for any questions or corrections.

TAIPEI, Taiwan and MILPITAS, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, announces today its annual cash dividend of $2.30 per ADS, a 15% increase from the $2.00 per ADS declared in 2025.

Following three years of strong financial performance, the Board has decided to increase its annual dividend payment to $2.30 per ADS1,2 which will be paid in four quarterly installments of $0.575 per ADS3 according to the following anticipated record and payment dates:

Record DatePayment DateNovember 5, 2026November 19, 2026February 16, 2027February 26, 2027May 6, 2027May 21, 2027August 5, 2027August 19, 2027   The Company’s depository bank’s DR books will be closed for issuance and cancellation on each of the record dates.

“Since we have significantly increased our revenue and profitability, and our business outlook remains strong and on track for a record results this year, our Board has decided to increase our annual dividend,” said Wallace Kou, President and CEO of Silicon Motion.

The payment of the annual dividend to be paid in quarterly installments will be made according to the anticipated record and payment dates unless subsequently changed by the Board. The declaration and payment of future cash dividends is subject to the Board's continuing determination that the payment of dividends is in the best interests of the Company’s shareholders and is in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.

ABOUT SILICON MOTION:
We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customers’ businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customers’ business taking into account the ongoing U.S.-China tariffs and trade disputes; other factors beyond our control such as natural disasters, terrorism, civil unrest, war, including conflicts in the Middle East, threats to the Strait of Hormuz and global energy supply routes, and the ongoing Russia-Ukraine War, and pandemics, epidemics and other health emergencies; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; the risk that the anticipated benefits from our PCIe 5 controller products, including higher average selling prices, may not be maintained or may be less than expected; the risk that our anticipated market share gains across our product lines and penetration of enterprise end markets may not materialize as expected or on the anticipated timeline; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

______________________
1 One ADS is equivalent to four ordinary shares.
2 $2.30 per ADS is equivalent to $0.575 per ordinary share.
3 $0.575 per ADS is equivalent to $0.14375 per ordinary share.

Zeta Global stock continued its strong rally, reaching its highest level since November 2024, and is slowly nearing its record high of $38.15. It has jumped by over 230% from its 2025 lows, with the market capitalization hitting $8.42 billion. This rally may continue after Goldman Sachs upgraded its target.

Zeta Global is a top company in the advertising industry, where it uses artificial intelligence, customer data analytics, and digital marketing automation solutions to help clients. It works with large firms across most sectors to help them find new customers, predict what they are likely to buy, and then deliver personalized advertisements.

Goldman Sachs analysts believe that Zeta Global has more room for growth. They upgraded the company from neutral to buy, with the price target being $45, which is about 35% above the current level. The analysts pointed to its strong demand and revenues, and the need for personalized marketing. 

Other analysts have been relatively bullish on the stock. Roth Capital has set a target of $55, while New Street Research, KeyCorp, Truist Financial, and DA Davidson have a target of $38. The average target among analysts is $36, where it is trading at today.

The most recent financial showed that its revenue rose by 44% in the second quarter to $443 million. Its adjusted EBITDA soared by 56% to $92 million, while its adjusted EBITDA margin expanded to 20.7%.

Notably, this report was the 20th straight “beat and raise” quarter. It predicted that it is on track to hit its 2028 EBITDA and free cash flow targets. Its annual revenue is expected to jump to $2.3 billion in 2028 from $1.8 billion this year.

The adjusted EBITDA margin is expected to move to 25%. If this is correct, the figure will jump to $573 million from $405 million this year, with its free cash flow target hitting $371 million.

These numbers may help to justify its substantial valuation. It trades with a forward price-to-earnings ratio of 35, much higher than the forward S&P 500’s 19.1. 

On the positive side, the company has a forward PEG ratio of 1.04, slightly lower than the sector median of 1.17. Its Rule-of-40 multiple also stands at 100. 

Zeta shares chart | Source: TradingView

The weekly chart shows that Zeta Global shares have continued soaring in the past few months. It jumped from $10.6 in 2025 to a high of $35.6 as the rally gained momentum. 

The stock is in the process of forming a cup-and-handle pattern whose upper side is at $38.15, its highest point in 2024. This pattern often leads to more upside over time. 

Zeta has remained above the 50-week moving average. Therefore, the stock will likely continue rising, with the next target to watch being at $50. This view will be confirmed if it moves above the all-time high of $38.15.

CLERMONT, Fla., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, today announced its newest Central Florida community, Toll Brothers at Cypress Reserve, is coming soon to Clermont, Florida. Nestled along the serene shoreline of Sumner Lake, this exclusive lakefront community will feature meticulously designed homes and resort-inspired amenities. Site work is underway at 3715 Willow Flower Street in Clermont, and the community is anticipated to open for sale in early 2027.

Toll Brothers at Cypress Reserve will deliver a master-planned lifestyle with thoughtfully crafted one- and two-story home designs on spacious 65-foot-wide home sites, many of which offer the opportunity for private docks. Homes will feature 3 to 6 bedrooms, 2 to 5 bathrooms, and 3-car garages, with pricing anticipated from the mid-$800,000s. Each home will be built with the quality, craftsmanship, and exceptional standards for which Toll Brothers is known.

Toll Brothers customers will experience one-stop shopping at the Toll Brothers Design Studio. The state-of-the-art Design Studio allows home shoppers to choose from a wide array of selections to personalize their dream home with the assistance of Toll Brothers professional Design Consultants.

"We are thrilled to introduce Toll Brothers at Cypress Reserve, a community that exemplifies the best of lakeside living with luxury homes and vibrant amenities in a picturesque setting," said Brock Fanning, Division President of Toll Brothers in Central Florida. "This community highlights the exceptional lifestyle Toll Brothers is proud to offer in the sought-after Clermont area."

Residents of Toll Brothers at Cypress Reserve will enjoy exclusive access to a wide range of resort-inspired amenities, including a luxurious clubhouse, a fitness center, a resort-style pool, tennis and pickleball courts, a playground, and a dog park. The community’s idyllic lakeside setting, enhanced by lush preserve views, provides an unparalleled environment for relaxation and recreation.

Located just minutes from Clermont’s historic downtown, Toll Brothers at Cypress Reserve offers convenient access to shopping, dining, and entertainment, as well as major commuter routes including SR-50, US-27, and the Florida Turnpike.

For more information and to join the Toll Brothers interest list for Toll Brothers at Cypress Reserve, call (877) 431-0444 or visit TollBrothers.com/FL.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation's leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol "TOL." Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.

Toll Brothers was named the #1 Most Admired Home Builder in Fortune magazine's 2026 list of the World's Most Admired Companies®, the ninth year the Company has achieved this honor. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

From Fortune, ©2026 Fortune Media IP Limited. All rights reserved. Used under license.

Contact: Andrea Meck | Toll Brothers, Senior Director, Public Relations & Social Media | 215-938-8169 | [email protected]

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/7b4dce1d-848d-4e13-9d88-7ab827d8d746
https://www.globenewswire.com/NewsRoom/AttachmentNg/a755828d-9fbe-4d61-925d-a45d4f588020

Sent by Toll Brothers via Regional Globe Newswire (TOLL-REG)

Investors keep debating Tesla's car margins while a completely different business quietly rewrites the company's growth story. The real question is whether the market is pricing the wrong Tesla entirely.

Our 24/7 Wall St. price target for Tesla (NASDAQ:TSLA | TSLA Price Prediction) is $405.69. That implies 8.12% upside from Tuesday’s close of $375.23, and our model rates the stock a buy.

Metric
Value

Current Price
$375.23

Price Target from 24/7 Wall St.
$405.69

Upside/Downside
8.12%

Recommendation
BUY

Confidence Level
90%

We rate our confidence as high. This morning shares traded at $367.79, down 1.98%, as investors position ahead of third-quarter earnings.

My thesis centers on the businesses outside vehicle sales: Robotaxi, Full Self-Driving (FSD) subscriptions, energy storage and the Optimus humanoid robot. The market still prices Tesla largely on automotive margins, and that gap is the opportunity.

Record Revenue Meets a Massive Spending Surge
Tesla is down 3.39% over the past week, up 0.64% over the past month and down 18.22% year to date. Over the past year it has traded between a low of $297.38 and a high of $498.83.

Second-quarter revenue rose 25.52% to $28.24 billion, beating estimates. Non-GAAP EPS of $0.33 missed the $0.5367 estimate as operating margin narrowed to 1.4%. Capex of $5.789 billion pushed free cash flow to -$1.092 billion.

The non-auto numbers looked much stronger. Active FSD subscriptions rose 56% to 1.48 million, Services and Other revenue grew 50%, and storage installations reached 13.5 GWh.

Why Bulls See a Path to $467
The bull case reaches $467.45. Autonomy drives it. Tesla has logged “more than 380,000 miles of unsupervised Robotaxi” with “zero notable incidents.” Elon Musk said some customers are “buying Tesla full self-driving with a car attached.”

Energy adds a second leg: SpaceX buys Megapacks to smooth data center power swings. Musk also called Optimus “the biggest product ever.”

Analysts hold 19 Buy ratings against 4 Sells, with a consensus target of $397.83. Simon Erickson of 7investing built a model valuing Tesla at $700/share if Robotaxi works out.

What Could Go Wrong With the AI Pivot
Our bear case is $364.28. Management expects 2026 capex of “more than $25 billion”, so negative free cash flow could remain. At 159 times forward earnings, the stock has little room for delays. Polymarket traders price only a 0.073 probability that Optimus is released by December 31, 2026.

Some of the pressure has reasons. A warranty true-up of about $240 million weighed on energy margins. Operating expenses rose 47% on AI, R&D and pre-production costs, which is spending aimed at future revenue. Net income, however, included a $1 billion SpaceX mark-to-market gain.

How Tesla Compares to NVIDIA and Uber
The clearest public example of monetized AI compute is NVIDIA (NASDAQ:NVDA), the business Tesla is building with its AI chips and Austin fab. NVIDIA’s latest quarterly revenue rose 105.85%, yet it carries a much lower earnings multiple than Tesla. Tesla’s AI premium is already in the price (we studied what the early signals of a monster tech winner looked like in a free Next Nvidia playbook).

Uber (NYSE:UBER) is building “the world’s largest platform for autonomous vehicles” on top of 3.9 billion quarterly trips. That makes it Tesla’s most direct competition for Robotaxi riders, a comparison Barron’s noted today.

Company
Trailing P/E
Price/FCF

Tesla
347
238.26

NVIDIA
46
57.08

Uber
14
14.92

Compared with these peers, Tesla trades at a steep premium. Against that background, a target with single-digit upside looks reasonable.

Autonomy Tips the Scale Toward a Buy
My 24/7 Wall St. price target of $405.69 carries a buy rating with 90% confidence. FSD subscription growth tips the scale because it turns the fleet into recurring software revenue.

The thesis improves if Robotaxi keeps expanding and third-quarter results show capex turning into Services and energy growth. The case loses ground if free cash flow stays negative while autonomy revenue fails to speed up. For now, the non-auto story supports our bullish target.

Tesla Price Prediction 2026-2030
Looking further ahead, here is where our model projects Tesla could trade, assuming current growth trends remain.

Year
Price Target from 24/7 Wall St.

2026
$405.69

2027
$427.93

2028
$444.16

2029
$468.94

2030
$504.95

These projections assume Tesla keeps executing on its present plan. A statewide Robotaxi launch could push results well above these figures, while a long capex cycle with weak returns is the biggest downside risk.

Contact [email protected] for any questions or corrections.

Alphabet's (GOOGL) sales of its specialized artificial intelligence chip systems could generate 35% of Google cloud computing revenue in 2027, becoming a major growth driver for the cloud business and a potential catalyst for Google stock, says Evercore ISI.

Google originally developed Tensor Processing Unit systems, or TPUs, for its own cloud computing  workloads. It's now selling TPUs to outside customers, such as AI model maker Anthropic and Meta Platforms (META).

Google's fast-emerging TPU business is expected to create more competition for Nvidia (NVDA).

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"TPUs are evolving from an internal technology advantage into an external hardware business," said Evercore ISI analyst Mark Mahaney in a report.

Evercore ISI forecasts TPU revenue of $7.5 billion in the second half of 2026, $75 billion in 2027 and $112.5 billion in 2028.

Google aims to monetize TPU systems through three business models. One is letting companies rent TPU processing at its own cloud business. Also, Google sells TPU systems directly for deployment in customers' data centers, such as Anthropic. Third, Google also sells TPUs through a Blackstone cloud computing joint venture.

Including TPU sales, Evercore ISI expects Google Cloud revenue to double to nearly $213 billion in 2027, then rise 40% to $298 billion in 2028. Excluding TPUs, cloud revenue would still grow 39% and 35%, respectively.

Upside For Google Stock?
Broadcom (AVGO) is Alphabet's manufacturing partner for TPUs. The Evercore ISI forecast assumes a 30% gross margin — and 15% to 20% operating margin — across 2026 to 2028, reflecting the economics Google shares with Broadcom as its chip-development and supply partner.

Google reported second-quarter cloud-computing revenue of $24.77 billion, up 82% year over year, driven by artificial intelligence workloads, handily beating estimates of $22.46 billion.

For the first time, Google included third-party sales of AI accelerator chips in cloud revenue. Meanwhile, Google's newest TPU, called Ironwood, continues to get good reviews.

Google Stock Technical Ratings
Evercore ISI maintained its outperform rating and 450 price target for Google stock.

Google stock has gained about 11% in 2026.

Further, Google stock holds an IBD Composite Rating of 89 out of 99, according to IBD Stock Checkup.

IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Further, Google stock has an Accumulation/Distribution Rating of E. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are selling rather than buying.

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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Nike is making a big bet on India.

The retailer, which has been struggling to revive its business and regain momentum under CEO Elliott Hill, is hoping the world's most populous country can help it turn the page on its performance.

As it reported its fiscal first-quarter earnings on Oct. 1, the company announced it will create a new global campus in Bengaluru, India, as part of its growth strategy. Hill wrote in a letter to employees that the new facility would be a "long-term investment" to help position Nike for success.

"India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," Hill wrote.

The new campus is expected to open in the next few years and span corporate roles across the organization, including the namesake Nike brand, Jordan Brand and Converse. Nike plans to discuss its India campus in detail at its investor day next month.

In a statement to CNBC, a Nike spokesperson said expanding into India is a "natural" next step for the company as it looks to grow its global presence.

"As participation in running, basketball, football, fitness and other sports continues to grow across India, we see an opportunity to better serve athletes through stronger local capabilities, consumer insights, and innovation," the spokesperson said.

India will be the world's third-largest retail market by 2030, according to Indian conglomerate Reliance Industries. Its e-commerce market was valued at $159.25 billion in 2026 and is projected to reach $332.94 billion by 2031, according to IBEF, a business advocacy organization created by the Indian government.

Nike has endured a yearslong slump and is trying to right its business under Hill's turnaround plan. Nike also announced this month that it would lay off workers across the company as part of what it has dubbed its Pace strategy, which includes supply chain changes and reorganization of the company's geographic segments. Nike expects the effort to deliver approximately $2.5 billion in savings through fiscal 2031.

Nike's decision to invest further in India as part of its comeback comes as the sportswear company sheds revenue in another critical international market: China. Though its fiscal first-quarter North America revenue came in just above Wall Street expectations, Hill said that performance wasn't enough to offset pressures abroad.

Nike has been particularly struggling in the Greater China market, where its revenue dropped by 26% in its fiscal first quarter. It's part of what experts have said is a broader trend of American companies losing relevance and traction to domestic brands as the once-lucrative market matures.

On a call with analysts earlier this month, Hill said the company was taking "deliberate actions" to strengthen its China business, though he said those effects will take time to materialize. Hill said the company plans to refresh its physical retail, spearhead a digital cleanup and create higher quality experiences for consumers.

The Nike spokesperson told CNBC the company is "deeply committed" to China and sees the region as one of its "most important long-term growth markets," even as Nike expands its presence in India.

"China remains a long-term priority for Nike, while India represents another important opportunity to invest in the future of sport and the next generation of athletes," the spokesperson said.

Investing in a long-term visionThe company's expansion in India may be coming at both an opportune and inopportune time, according to experts. Investing in a growing international market does not guarantee higher sales — it also requires persuading Indian consumers they want the Nike brand, a challenge the company has struggled to overcome in China.

"What Nike, I think, is doing right now is going region by region and working to reestablish what the brand stands for," Simeon Siegel, a senior managing director at Guggenheim Securities, told CNBC.

Siegel said part of the dissonance for Nike is that each region and segment of the business is at a different stage of its turnaround. He said investing in India may set the company up for a more sustainable future if the China business continues to lag, but Nike needs to have a compelling product, solid storytelling and extensive distribution in the region to be successful there.

"I think the company needs to look inward and figure out what is the right way to reestablish profitability," he said. "And that involves, in certain instances, shrinking and saving and cutting, and, in certain instances, investing and looking toward the future, because the goal here is not to shrink to oblivion; it's to shrink to stability, and then ultimately growth."

The global strategy may also focus too much on a long-term vision rather than more immediate fixes, according to Jessica Ramirez, co-founder and managing director at advisory firm The Consumer Collective, who specializes in retail and apparel. Ramirez said she already thought Nike and Hill's vision were "out of touch" and the plan for the India campus didn't necessarily help its case.

"I don't know that this plan of India is an immediate solution to their problems right now," she said. "They have to plan long term, right? But they also need to plan short term, which is continuously falling apart."

She said Nike has not shared plans that are concrete enough to win back momentum in China and has to develop both regions hand in hand.

While Nike under Hill has improved its wholesale and performance categories, Ramirez said it has yet to master its direct-to-consumer and sportswear segments, which would allow the company to flourish in all of its markets.

The Nike spokesperson told CNBC the retailer is committed to investing in both countries as it tries to expand its global presence.

"Importantly, this is not an either/or decision between India and China," the spokesperson said. "We always invest market by market based on long-term opportunities to serve athletes and grow sport around the world."

A growing market opportunityStill, India presents an attractive opportunity for many companies looking to unlock growth abroad.

Ramirez said Nike is just the latest to join a cohort of American companies looking to establish their presence in the market. While many brands began investing in China years ago, she said that trend is now pointing toward India instead, as U.S. companies see more spending pressures in the Chinese market and navigate geopolitical tensions between the two countries.

"It's to get in there for the long term and to make sure that they are there for when they can reap the positive effects," she said. "I want to say this conversation started getting a bit more engaging in the last two to three years, when companies started investing more in India."

India is one of the world's strongest market performers, driven primarily by domestic demand, investment and supply-chain diversification, according to an analysis from Accenture. With a population of over 1 billion, the country presents a growth opportunity similar to the one China offered in the early 2000s.

"It's going to be a fast-growing consumer base where we assume their income levels will continue to go up and they'll have much more purchasing power, and so maybe could we be tapping in on that market from a consumer lens," Chris Tomsovic, who leads Accenture's macro foresight team, told CNBC.

Still, one of the biggest focus points for the Indian consumer is price sensitivity, which will pose a challenge for American companies trying to break into the market, he added. Even so, many domestic brands on the market are younger, meaning there could be more opportunities right now for Western companies to take market share.

Another challenge is that the Chinese consumer has historically been receptive to American brands, whereas it will still take more data to understand how Indian shoppers feel about those businesses, he said. For sportswear retailers, the focus of the sports most popular in each region will also factor into that equation.

"Can they really localize the product, make the price point work? Can they adapt to the local social media technology ecosystem? Can they adapt to the local cultural values and norms that the consumer wants?" Tomsovic said.

"If you're able to nail that, then I think you're right. Whether you're a footwear brand, whether you're an athleisure brand, I think there's a huge opportunity there with a billion consumers," he said.

This report is from this week's The Tech Download newsletter. Like what you see? You can subscribe here.

Nvidia's Jensen Huang draws a crowd wherever he goes.

In an old converted church in West London on Wednesday night, Huang stood on a pop-up stage in front of politicians, investors, tech execs and journalists, announcing the chip giant was taking stakes in five U.K. startups. 

"We're not your largest investor, but we are your best investor," he proclaimed. "I'm gonna invest in you, I'm gonna invest in you," he shouted, pointing at the founders. His appearance in London was part of a European tour ahead of Nvidia's GTC event in Berlin next week. 

Earlier, he'd searched out U.K. neocloud Nscale CEO Josh Payne in the crowd, declaring, "last year you were zero." 

"Now look at them," he said. "We invested in you, I attracted a whole bunch of investors to you." Nscale could be the most valuable British company in a decade, Huang said to cheers from the crowd.

The Nvidia boss certainly doesn't lack for confidence. 

Whiskey with BurnhamThe warm reception Huang regularly receives is a sign of just how much sway he holds in the AI industry.

Nvidia has a near monopoly over the most powerful AI chips and Huang courts tech execs and world leaders with ease. He's a near constant presence at U.S. President Donald Trump's side at state dinners and visits. 

In London, after the pomp and ceremony of Huang's speech, he emerged around 40 minutes late to a media huddle outside the front of the church.

"The Prime Minister [Andy Burnham] and I had a nice whiskey together. He's a whiskey man," he told reporters. Later, Huang said he'd be meeting German Chancellor Friedrich Merz "in a couple of days."

Huang spoke to journalists for nearly an hour that evening — a fair effort considering he'd only eaten a "quarter of a quarter" of a sandwich that day — dishing out praise and criticism to Europe with a bombastic assuredness. 

"Nothing pains me more, frankly, than to see one of the most technologically advanced countries to be left so far behind in technology," he said, referring to Germany.

And the U.K. didn't escape scot-free. "If you tell an entrepreneur there's one in a million chance they can succeed, that entrepreneur says, 'So you're telling me there's a chance?' But in the UK, somehow there's 999,000... reasons to fail."

Startup investmentsThe CEO was also bullish on Europe's chances of succeeding with AI, not least, presumably, because Nvidia now has stakes in so many of the region's most promising startups.

On Wednesday those lucky startups were biotechs Prima Mente and Boltz, project delivery platform Foresight, algorithm discovery startup Hiverge and quantum company Riverlane. Those companies, alongside others in the U.K. that Nvidia isn't naming, will be the recipients of $1.16 billion of Nvidia cash. 

Earlier in the week the chip giant announced it was taking stakes in a number of French startups.

It's all part of a major push by Nvidia to build out holdings across the AI stack. Among the recipients of funding from Nvidia have been the likes of OpenAI, Anthropic, Intel and XAI. 

The chip giant has participated in 116 investment rounds in 2026 so far, according to Dealroom, up from just 12 in 2022. 

News editOne more thingSpaceX's military satellite system, Starshield, has drawn renewed attention this week as Ukraine has grappled with restrictions on the tech. My colleague Elsa Ohlen has written this must-read explainer on how it works and differs from Starlink.