Track market-moving stories before they get noisy

15.7.2026 13:29

Ropa +0,69 % na 79,89 USD za barel.
Zemní plyn -0,24 % na 2,897 USD za mbtu.

Zlato -0,83 % na 4035,8 USD za unci.
Stříbro -1,49 % na 58,225 USD za unci.
Měď -0,2 % na 6,3655 USD za libru.

Kukuřice +0,98 % na 4,65 USD za bušl.
Pšenice +3,1 % na 6,65 USD za bušl.

Michal Šnobl
Fio banka, a.s.
Prohlášení

Investment Thesis

An Analysis of IBM’s Decline in Q2 2026

The Domino Effect as a Sign of a Systemic Crisis in the Software Sector

image credit: Author

The Obsolescence of Traditional Software Will Continue

For example, consider ROI metrics for IBM and the companies benefiting from the AI supercycle. With Nvidia (NVDA) reporting a return on investment of 46.2%, Micron (MU) at 21.1%, and Alphabet (GOOGL) at 7.9%, IBM’s ROI stands at just 1.3%.

IBM’s Warning—Not Just a Passing Storm

image credit: Author

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IBM's CEO just showed what taking accountability looks like By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

IBM CEO Arvind Krishna is widely credited with turning the company around since becoming CEO in 2020. Alex Wong/Getty Images When IBM delivered bad news on Tuesday, CEO Arvind Krishna didn't look for someone else to blame. He owned it.

Krishna, who is widely credited with turning IBM around since becoming CEO in 2020, said in a letter to investors that clients had redirected quarterly capital spending toward scarce infrastructure. Management underestimated the scale of that shift, contributing to the company's second-quarter shortfall.

"These conditions require our teams to execute perfectly, and this quarter we faltered," Krishna wrote. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected."

Though IBM's shares tanked in response, current and former tech executives told Business Insider that other leaders ought to emulate Krishna's candor. Owning a setback can strengthen a CEO's credibility longterm, they said, by showing that management understands the problem and is prepared to address it.

"He will develop more trust among his shareholders and employees and customers by being transparent," said former Cisco CEO John Chambers.

Leaders can gain more credibility from how they handle setbacks than from their successes, he added, though they need to move quickly. They should explain what happened, acknowledge what did not go as planned, and outline how they intend to get the business back on track.

"Rule 101 on setbacks: speed and be very visible," Chambers said.

Openness carries risks, though. Leaders facing a setback may not yet have complete answers, and acknowledging uncertainty can leave them vulnerable.

"You have to have the courage to say, 'Here's what I know. Here's what I don't know,' " Chambers said. "And that sometimes exposes you to critics."

Accepting responsibilityGilad Bechar, CEO of Moburst, a digital marketing agency, described Krishna's remarks as "refreshing." He said CEOs often attribute disappointing results to outside forces such as tariffs or other macroeconomic headwinds.

"Usually you don't see Fortune 100 companies that are owning their situation like that," said Bechar. "They are very afraid of being this candid."

Krishna may have helped contain the damage by characterizing the shortfall as a forecasting error rather than as evidence that demand for the company's products and services had deteriorated, added Bechar. Showing that management understood what went wrong gives investors reason to believe the problem can be corrected, he said.

"If you're in control of the situation, you fully understand everything, and you just misjudge one specific element, it sounds like you're in a much better place," Bechar said.

Public-company leaders may be obligated to disclose material setbacks promptly, but accepting responsibility is a choice, said Jeffrey Puritt, the retired CEO of Telus International, a technology services provider now known as Telus Digital.

Krishna could have satisfied investors' need for information without explicitly owning up to management's mistake. By doing both, Puritt said, he demonstrated the accountability expected of someone in the top job.

"If you're the CEO, you get paid to take responsibility for the business's performance, win, lose, or draw," he said. Blaming others, Puritt added, would have been "a bit of a cop out."

'What you need to hear'Krishna has spent more than three decades at IBM. He helped orchestrate the company's $34 billion acquisition of Red Hat, which closed in 2019, and became CEO the following year. Since then, he's led an overhaul centered on hybrid cloud, software, and artificial intelligence.

Rod Adkins, a former IBM executive who also spent more than three decades at the company, said transparency is consistent with Krishna's leadership style.

"He has always been what I would call an above-the-board executive," Adkins said. "He will deliver what you need to hear versus what you want to hear."

That approach is especially important at a company like IBM, whose technology supports mission-critical operations, such as banking transactions and systems used by healthcare providers, airlines, retailers, and government agencies.

"Part of the trusted brand is being authentic with your communications," Adkins said. "Transparency, especially today, is a very important leadership attribute."

Read next

Sarah E. Needleman You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Sarah E. Needleman covers leadership and the workplace for Business Insider.Previously, she was a reporter for The Wall Street Journal for more than two decades, covering technology companies, entrepreneurship, and recruiting.In 2022, Sarah received an honorable mention with WSJ colleagues for their coverage of workplace misconduct at Activision Blizzard from the Society for Advancing Business Editing and Writing.Sarah graduated from Rutgers University in 1997 with a bachelor's degree in journalism. She lives with her husband, daughter, and fur child (an Australian labradoodle) in northern New Jersey.Have feedback or a tip?Contact Sarah on Signal at saraheneedleman.13, or email her at [email protected] of Sarah’s scoops, exclusives, and most-read articles include: 'Entitled,' 'complacent,' and 'sloppy': Inside the workplace tension at the world's largest HR organizationShe won a religious exemption from using AI at work. The Pope's remarks could fuel similar appeals.The CEO behind 'Grand Theft Auto' doesn't drink, smoke, or play video gamesPTO, parental leave, pensions: Even the most prized benefits are on the chopping blockGoodbye, middle managers. Hello, 'player-coaches' and 'org leads.'She used to manage 3 employees. Now she oversees 24. Welcome to the age of the megamanager.America's new sink-or-swim era is hereInside the AI divide roiling video game giant Electronic ArtsMeet your new office bestie: ChatGPT

IBM Leadership

NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into International Business Machines Corporation (NYSE:IBM) for potential securities fraud after its significant stock drop.

If you invested in IBM, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/ibm-class-action-lawsuit.

Key Details of the IBM ($IBM) Class Action Investigation:

Investigation Overview: Securities fraud relating to IBM’s misrepresentations about the pace of securing new business deals and the strength of its IBM Z product outlook  Stock Decline: July 14, 2026 – 25% Stock DropAction: Contact BFA Law to discuss your rights
Why is IBM Being Investigated for Securities Fraud?

IBM is being investigated for securities fraud following a significant stock drop. The decline in IBM’s stock price caused significant losses to investors.

IBM is a global technology and consulting company that focuses on hybrid cloud and artificial intelligence. IBM uses IBM Z to deliver enhanced AI acceleration through multi-model AI capabilities, low unit cost architecture at scale for workloads that require end-to-end encryption, continued availability, and ultra-high throughput.

BFA is investigating whether IBM misled investors about its pace securing new business deals and the strength of its IBM Z outlook.

Why did IBM’s Stock Drop?

On July 14, 2026, IBM released its 2026 Q2 financial results. IBM announced a disappointing quarter that it attributed to “a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.” IBM also revealed that it had “faltered,” and “did not adapt and move quickly enough” so that “numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.”

This news caused the price of IBM stock to decline over $75 in intraday trading on July 14, 2026, or over 25%.

Click here for more information: https://www.bfalaw.com/cases/ibm-class-action-lawsuit.

What Can You Do?

If you invested in IBM, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/ibm-class-action-lawsuit

Or contact:

Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/ibm-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

RAHWAY, N.J.--(BUSINESS WIRE)---- $MRK #MRK--Merck to Present New Data on Daily, Weekly, and Monthly Options Across its HIV Treatment and Prevention Pipeline at AIDS 2026.

38K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ORCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

, /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $818 million or $5.32 of diluted earnings per common share.

(Dollars in millions, except per share data)

2Q26

1Q26

2Q25

Earnings Highlights

Net interest income

$        1,792

$        1,752

$        1,713

Taxable-equivalent adjustment

12

11

9

Net interest income - taxable-equivalent

1,804

1,763

1,722

Provision for credit losses

120

140

125

Noninterest income

740

689

683

Noninterest expense

1,349

1,438

1,336

Net income

818

664

716

Net income available to common shareholders - diluted

781

620

679

Diluted earnings per common share

5.32

4.13

4.24

Return on average assets - annualized

1.51 %

1.26 %

1.37 %

Return on average common shareholders' equity - annualized

12.30

9.67

10.39

Average Balance Sheet

Total assets

$     216,532

$     213,828

$    210,261

Interest-bearing deposits at banks

15,061

16,231

19,698

Investment securities

38,728

37,845

35,335

Loans

141,427

138,423

135,407

Deposits (1)

163,524

164,176

163,258

Borrowings

20,794

16,759

14,263

Selected Ratios

(Amounts expressed as a percent, except per share data)

Net interest margin (1)

3.70 %

3.70 %

3.62 %

Efficiency ratio (2)

52.8

58.3

55.2

Net charge-offs to average total loans - annualized

.23

.31

.32

Allowance for loan losses to total loans

1.52

1.53

1.61

Nonaccrual loans to total loans

.84

.89

1.16

Common equity Tier 1 ("CET1") capital ratio (3)

10.19

10.33

10.99

Common shareholders' equity per share

$      176.03

$      173.82

$      166.94

(1)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

(2)

A reconciliation of non-GAAP measures is included in the tables that accompany this release.

(3)

CET1 capital ratio at June 30, 2026 is estimated.

Financial Highlights

Taxable-equivalent net interest income increased $41 million in the recent quarter as compared with the first quarter of 2026 reflecting an additional day in the recent quarter, higher interest income on nonaccrual loans and growth in average earning assets. The net interest margin remained at 3.70%. A $3.0 billion increase in average loan balances in the recent quarter spanned all loan categories including $2.3 billion of growth in average commercial and industrial loans. Commercial real estate loans at June 30, 2026 increased $1.1 billion from March 31, 2026. Noninterest income in the recent quarter reflects a higher distribution from M&T's investment in Bayview Lending Group LLC ("BLG"), an increase in trust income and a rise in revenues from interest rate swap agreements entered into for commercial customers. The decline in noninterest expense reflects seasonal salaries and employee benefits expense recognized in the first quarter of 2026. The allowance for loan losses as a percent of total loans declined 1 basis point to 1.52% at June 30, 2026. In the recent quarter, M&T repurchased 2.1 million shares of its common stock at a total cost of $465 million. M&T's CET1 capital ratio is estimated to be 10.19% at June 30, 2026. Chief Financial Officer Commentary

"M&T generated record earnings per share in the second quarter, reflecting strong contributions from our commercial, retail and institutional services and wealth management businesses. These results reflect the enduring strength of our franchise and the dedication of our employees to making a meaningful difference in the lives of our customers and communities. I want to thank my M&T colleagues. As a result of their commitment, M&T continues to create lasting value for everyone we serve."

- Daryl N. Bible, M&T's Chief Financial Officer

Contact:

Investor Relations: 

Rajiv Ranjan       

716.842.5138

Steve Wendelboe

716.842.5138

Media Relations: 

Frank Lentini   

929.651.0447

 Non-GAAP Measures (1)

(Dollars in millions, except per share data)

2Q26

1Q26

Change
2Q26 vs.
1Q26

2Q25

Change
2Q26 vs.
2Q25

Net operating income

$            823

$            671

23 %

$            724

14 %

Diluted net operating earnings per common share

5.35

4.18

28

4.28

25

Annualized return on average tangible assets

1.59 %

1.33 %

1.44 %

Annualized return on average tangible common equity

18.57

14.51

15.54

Efficiency ratio

52.8

58.3

55.2

Tangible equity per common share

$       117.41

$       115.96

1

$       112.48

4

(1)

A reconciliation of non-GAAP measures is included in the tables that accompany this release.

M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature.

 Taxable-equivalent Net Interest Income (1)

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs.
1Q26

2Q25

Change

2Q26 vs. 
2Q25

Average earning assets

$     195,216

$     192,594

1 %

$     190,535

2 %

Average interest-bearing liabilities (2)

140,354

136,388

3

132,368

6

Net interest income - taxable-equivalent

1,804

1,763

2

1,722

5

Yield on average earning assets (2)

5.40 %

5.35 %

5.51 %

Cost of interest-bearing liabilities (2)

2.36

2.32

2.71

Net interest spread

3.04

3.03

2.80

Net interest margin (2)

3.70

3.70

3.62

(1)

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates are included in the accompanying table herein.

(2)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

Taxable-equivalent net interest income increased $41 million, or 2%, compared with the first quarter of 2026 reflecting an additional calendar day, higher interest income from nonaccrual loans and growth in average loans in the recent quarter. Taxable-equivalent net interest income increased $82 million, or 5%, as compared with the year-earlier second quarter reflecting growth in average loans and investment securities and favorable earning asset and interest-bearing liability repricing, including an improved impact from interest rate swap agreements.

 Average Earning Assets

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs. 
1Q26

2Q25

Change

2Q26 vs.
2Q25

Interest-bearing deposits at banks

$      15,061

$      16,231

-7 %

$      19,698

-24 %

Investment securities

38,728

37,845

2

35,335

10

Loans (1)

Commercial and industrial

66,069

63,804

4

61,036

8

Real estate - commercial

23,553

23,496

—

25,333

-7

Real estate - residential

25,086

24,817

1

23,684

6

Consumer

26,719

26,306

2

25,354

5

Total loans

141,427

138,423

2

135,407

4

Other

—

95

-100

95

-100

Total earning assets

$    195,216

$    192,594

1

$    190,535

2

(1)

  Supplemental information on loan balances is included in the accompanying table herein.

Average earning assets rose $2.6 billion from the first quarter of 2026 reflecting loan growth and the purchases of investment securities predominantly in the immediately preceding quarter. The increase in average loans reflected broad-based growth in average commercial and industrial loan balances of $2.3 billion and higher average commercial real estate loan balances of $57 million, average residential real estate loan balances of $269 million and average consumer loan balances of $413 million.

Average earning assets increased $4.7 billion from the second quarter of 2025. Average interest-bearing deposits at banks decreased $4.6 billion as liquidity was deployed to originate loans and purchase investment securities. The growth in average loans reflected higher average balances of commercial and industrial loans of $5.0 billion, including growth in loans spanning most industry types, residential real estate loans of $1.4 billion and consumer loans of $1.4 billion. Those increases were partially offset by a $1.8 billion decline in average commercial real estate loan balances, reflecting payoffs.

 Average Interest-bearing Liabilities

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs.
1Q26

2Q25

Change

2Q26 vs.
2Q25

Interest-bearing deposits

Savings and interest-checking deposits (1)

$       105,752

$       106,570

-1 %

$       103,934

2 %

Time deposits (1)

13,808

13,059

6

14,171

-3

Total interest-bearing deposits (1)

119,560

119,629

—

118,105

1

Short-term borrowings

8,016

5,695

41

3,327

141

Long-term borrowings

12,778

11,064

15

10,936

17

Total interest-bearing liabilities (1)

$       140,354

$       136,388

3

$       132,368

6

(1)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

Average interest-bearing liabilities in the recent quarter rose $4.0 billion from the first quarter of 2026 reflecting an increase in average short-term borrowings from the FHLB of New York and average long-term borrowings from issuances of senior notes and securitizations.

Average interest-bearing liabilities increased $8.0 billion from the second quarter of 2025 reflecting growth in average savings and interest-checking deposits of $1.8 billion and higher average short-term borrowings from the FHLB of New York and long-term borrowings from issuances of senior notes and securitizations.

Provision for Credit Losses/Asset Quality

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs.

1Q26

2Q25

Change

2Q26 vs.

2Q25

At end of quarter

Nonaccrual loans

$         1,208

$         1,240

-3 %

$          1,573

-23 %

Real estate and other foreclosed assets

23

27

-14

30

-25

Total nonperforming assets

1,231

1,267

-3

1,603

-23

Accruing loans past due 90 days or more (1)

603

646

-7

496

22

Nonaccrual loans as % of loans outstanding

.84 %

.89 %

1.16 %

Allowance for loan losses

$         2,176

$         2,136

2

$          2,197

-1

Allowance for loan losses as % of loans outstanding

1.52 %

1.53 %

1.61 %

Reserve for unfunded credit commitments

$               95

$               95

—

$                80

19

For the period

Provision for loan losses

$             120

$             125

-4

$             105

14

Provision for unfunded credit commitments

—

15

-100

20

-100

Total provision for credit losses

120

140

-14

125

-4

Net charge-offs

80

105

-23

108

-26

Net charge-offs as % of average loans (annualized)

.23 %

.31 %

.32 %

(1)

Predominantly government-guaranteed residential real estate loans.

The provision for credit losses was $120 million in the second quarter of 2026 as compared with $140 million in the immediately preceding quarter and $125 million in the second quarter of 2025. The allowance for loan losses as a percent of loans outstanding was 1.52% at June 30, 2026 and 1.53% at March 31, 2026, improved from 1.61% at June 30, 2025. That improvement reflects lower levels of criticized loans.

Nonaccrual loans were $1.2 billion at each of June 30, 2026 and March 31, 2026, compared with $1.6 billion at June 30, 2025. The lower level of nonaccrual loans at June 30, 2026 and March 31, 2026 as compared with June 30, 2025 reflects a decrease in commercial and industrial and commercial real estate nonaccrual loans.

 Noninterest Income

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs. 
1Q26

2Q25

Change

2Q26 vs.
2Q25

Mortgage banking revenues (1)

$          127

$          127

— %

$          130

-2 %

Service charges on deposit accounts

144

139

4

137

4

Trust income

197

183

8

182

9

Brokerage services income

35

35

2

31

13

Trading account and other non-hedging derivative gains

22

14

61

12

100

Gain (loss) on bank investment securities

2

4

-57

—

—

Other revenues from operations (2)

213

187

14

191

12

Total

$          740

$          689

8

$          683

8

(1)

Supplemental information on mortgage banking activities is included in the accompanying table herein.

(2)

Supplemental information on other revenues from operations is included in the accompanying table herein.

Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in mortgage banking revenues. As a result, amortization associated with residential mortgage loan servicing right assets previously recognized in other costs of operations before 2026 is no longer recorded. Instead beginning in 2026, fair value changes in residential mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues.

Noninterest income in the second quarter of 2026 increased $51 million, or 8%, from 2026's first quarter.

Trust income rose $14 million reflecting higher revenues from the Company's institutional services and wealth management businesses, including seasonal tax service fees. Trading account and other non-hedging derivative gains increased $8 million reflecting higher revenues from interest rate swap transactions with commercial customers. Other revenues from operations increased $26 million reflecting a $47 million distribution from M&T's investment in BLG in the recent quarter as compared with $33 million in the first quarter of 2026 and higher merchant discount and credit card fees. Noninterest income rose $57 million, or 8%, as compared with the second quarter of 2025.

Service charges on deposit accounts increased $7 million reflecting higher commercial and consumer service charges. Trust income rose $15 million reflecting higher revenues from the Company's institutional services and wealth management businesses. Trading account and other non-hedging derivative gains increased $10 million reflecting higher revenues from interest rate swap transactions with commercial customers. Other revenues from operations increased $22 million reflecting a $47 million distribution from M&T's investment in BLG in the recent quarter, partially offset by a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio and a $10 million gain on the sale of a subsidiary that specialized in institutional services each in the second quarter of 2025.  Noninterest Expense

(Dollars in millions)

2Q26

1Q26

Change

2Q26 vs.
1Q26

2Q25

Change

2Q26 vs.
2Q25

Salaries and employee benefits

$          826

$          914

-10 %

$          813

2 %

Equipment and net occupancy

129

133

-2

130

—

Outside data processing and software

154

144

8

138

12

Professional and other services

89

93

-5

86

2

FDIC assessments

18

23

-27

22

-21

Advertising and marketing

27

21

31

25

8

Amortization of core deposit and other intangible assets

7

9

-26

9

-27

Other costs of operations

99

101

-2

113

-12

Total

$       1,349

$       1,438

-6

$       1,336

1

Noninterest expense declined $89 million, or 6%, from the first quarter of 2026.

Salaries and employee benefits expense decreased $88 million reflecting seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense in the first quarter of 2026 and lower average staffing levels in the recent quarter, partially offset by the full-quarter impact of annual merit increases and an additional working day in the recent quarter. Outside data processing and software costs increased $10 million reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems. Noninterest expense increased $13 million, or 1%, from the second quarter of 2025.

Salaries and employee benefits expense increased $13 million reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower staffing levels in the recent quarter. Outside data processing and software costs rose $16 million reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems. Other costs of operations decreased $14 million reflecting the amortization associated with residential mortgage loan servicing right assets in the second quarter of 2025, partially offset by higher expense associated with the Company's supplemental executive retirement savings plan. Income Taxes

The Company's effective income tax rate was 23.1% in the second quarter of 2026, compared with 23.0% and 23.4% in the first quarter of 2026 and the second quarter of 2025, respectively.

Capital and Liquidity

2Q26

1Q26

2Q25

CET1

10.19 %

(1)

10.33 %

10.99 %

Tier 1 capital

11.64

(1)

11.81

12.50

Total capital

13.72

(1)

13.61

13.96

Tangible capital – common

8.07

8.26

8.67

(1)

Capital ratios at June 30, 2026 are estimated.

M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $220 million and $35 million, respectively, for the quarter ended June 30, 2026. M&T's current stress capital buffer is 2.7%.

M&T repurchased shares of its common stock at a cost of $465 million during the recent quarter, compared with $1.25 billion and $1.08 billion in the first quarter of 2026 and the second quarter of 2025, respectively.

The CET1 capital ratio for M&T was estimated at 10.19% as of June 30, 2026. M&T's total risk-weighted assets at June 30, 2026 are estimated to be $167.9 billion. Reflecting loan growth and share repurchase activity in the recent quarter, M&T's tangible common equity to tangible asset ratio at June 30, 2026 decreased 19 basis points from March 31, 2026 and 60 basis points from June 30, 2025.

While not subject to the liquidity coverage ratio ("LCR") requirements, M&T estimates that its LCR on June 30, 2026 was 106%, exceeding the regulatory minimum standards that would be applicable if it were a Category III institution subject to the Category III reduced LCR requirements.

Conference Call

Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ226. The conference call will be webcast live through M&T's website at https://ir.mtb.com/news-events/events-presentations. A replay of the call will be available through Wednesday July 22, 2026, by calling (800) 695-2533 or (402) 530-9029 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/news-events/events-presentations. 

About M&T

M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com. 

Forward-Looking Statements

This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.

Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.

While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events, developments and current conditions in the financial services industry, including trust, brokerage and investment management businesses; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; domestic or international political developments and other geopolitical events, including trade and tariff policies and international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-, brokerage-, and investment management-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the initiation and outcome of potential, pending and future litigation, investigations and governmental proceedings, including tax-related examinations and other matters; operational risk events, including loss resulting from fraud by employees or persons outside M&T and breaches in data and cybersecurity; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors.

M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2025, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements.

Financial Highlights

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions, except per share, shares in thousands)

2026

2025

Change

2026

2025

Change

Performance

Net income

$         818

$         716

14 %

$       1,482

$       1,300

14 %

Net income available to common shareholders

781

679

15

1,401

1,226

14

Per common share:

Basic earnings

5.35

4.26

26

9.49

7.58

25

Diluted earnings

5.32

4.24

25

9.44

7.55

25

Cash dividends

1.50

1.35

11

3.00

2.70

11

Common shares outstanding:

Average - diluted

146,758

160,005

-8

148,424

162,511

-9

Period end

144,933

156,532

-7

144,933

156,532

-7

Return on (annualized):

Average total assets

1.51 %

1.37 %

1.39 %

1.25 %

Average common shareholders' equity

12.30

10.39

10.98

9.37

Taxable-equivalent net interest income

$       1,804

$       1,722

5

$       3,567

$       3,429

4

Yield on average earning assets (1)

5.40 %

5.51 %

5.38 %

5.51 %

Cost of interest-bearing liabilities (1)

2.36

2.71

2.35

2.70

Net interest spread (1)

3.04

2.80

3.03

2.81

Contribution of interest-free funds (1)

.66

.82

.67

.83

Net interest margin

3.70

3.62

3.70

3.64

Net charge-offs to average total net loans (annualized)

.23

.32

.27

.33

Net operating results (2)

Net operating income

$         823

$         724

14

$       1,494

$       1,318

13

Diluted net operating earnings per common share

5.35

4.28

25

9.52

7.66

24

Return on (annualized):

Average tangible assets

1.59 %

1.44 %

1.46 %

1.32 %

Average tangible common equity

18.57

15.54

16.52

14.03

Efficiency ratio

52.8

55.2

55.5

57.8

At June 30,

Loan quality

2026

2025

Change

Nonaccrual loans

$       1,208

$       1,573

-23 %

Real estate and other foreclosed assets

23

30

-25

Total nonperforming assets

$       1,231

$       1,603

-23

Accruing loans past due 90 days or more

$         603

$         496

22

Government guaranteed loans included in totals above:

Nonaccrual loans

$           78

$           75

4

Accruing loans past due 90 days or more

586

450

30

Nonaccrual loans to total loans

.84 %

1.16 %

Allowance for loan losses to total loans

1.52

1.61

Additional information

Period end common stock price

$     238.01

$     193.99

23

Full-service domestic banking offices (3)

911

941

-3

Full-time equivalent employees

21,662

22,590

-4

(1)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

(2)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(3)

In the first quarter of 2026, thirteen domestic branches formerly classified as full service were designated as limited service per regulatory filings.

Financial Highlights, Five Quarter Trend

Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions, except per share, shares in thousands)

2026

2026

2025

2025

2025

Performance

Net income

$             818

$             664

$             759

$             792

$             716

Net income available to common shareholders

781

620

718

754

679

Per common share:

Basic earnings

5.35

4.16

4.71

4.85

4.26

Diluted earnings

5.32

4.13

4.67

4.82

4.24

Cash dividends

1.50

1.50

1.50

1.50

1.35

Common shares outstanding:

Average - diluted

146,758

150,109

153,712

156,553

160,005

Period end

144,933

146,917

151,840

154,518

156,532

Return on (annualized):

Average total assets

1.51 %

1.26 %

1.41 %

1.49 %

1.37 %

Average common shareholders' equity

12.30

9.67

10.87

11.45

10.39

Taxable-equivalent net interest income

$           1,804

$           1,763

$           1,790

$           1,773

$           1,722

Yield on average earning assets (1)

5.40 %

5.35 %

5.47 %

5.60 %

5.51 %

Cost of interest-bearing liabilities (1)

2.36

2.32

2.52

2.72

2.71

Net interest spread

3.04

3.03

2.95

2.88

2.80

Contribution of interest-free funds (1)

.66

.67

.75

.81

.82

Net interest margin (1)

3.70

3.70

3.70

3.69

3.62

Net charge-offs to average total net loans (annualized)

.23

.31

.54

.42

.32

Net operating results (2)

Net operating income

$             823

$             671

$             767

$             798

$             724

Diluted net operating earnings per common share

5.35

4.18

4.72

4.87

4.28

Return on (annualized):

Average tangible assets

1.59 %

1.33 %

1.49 %

1.56 %

1.44 %

Average tangible common equity

18.57

14.51

16.24

17.13

15.54

Efficiency ratio

52.8

58.3

55.1

53.6

55.2

June 30,

March 31,

December 31,

September 30,

June 30,

Loan quality

2026

2026

2025

2025

2025

Nonaccrual loans

$           1,208

$           1,240

$           1,252

$           1,512

$           1,573

Real estate and other foreclosed assets

23

27

35

37

30

Total nonperforming assets

$           1,231

$           1,267

$           1,287

$           1,549

$           1,603

Accruing loans past due 90 days or more

$              603

$              646

$              561

$              432

$              496

Government guaranteed loans included in totals above:

Nonaccrual loans

78

85

83

71

75

Accruing loans past due 90 days or more

586

634

543

403

450

Nonaccrual loans to total loans

.84 %

.89 %

.90 %

1.10 %

1.16 %

Allowance for loan losses to total loans

1.52

1.53

1.53

1.58

1.61

Additional information

Period end common stock price

$         238.01

$         206.72

$         201.48

$         197.62

$         193.99

Full-service domestic banking offices (3)

911

930

942

942

941

Full-time equivalent employees

21,662

21,866

22,080

22,383

22,590

(1)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

(2)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(3)

In the first quarter of 2026, thirteen domestic branches formerly classified as full service were designated as limited service per regulatory filings.

Condensed Consolidated Statement of Income

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions)

2026

2025

Change

2026

2025

Change

Interest income

$   2,620

$   2,609

— %

$   5,156

$   5,169

— %

Interest expense

828

896

-8

1,612

1,761

-8

Net interest income

1,792

1,713

5

3,544

3,408

4

Provision for credit losses

120

125

-4

260

255

2

Net interest income after provision for credit losses

1,672

1,588

5

3,284

3,153

4

Other income

Mortgage banking revenues

127

130

-2

254

248

2

Service charges on deposit accounts

144

137

4

283

270

5

Trust income

197

182

9

380

359

6

Brokerage services income

35

31

13

70

63

11

Trading account and other non-hedging

derivative gains

22

12

100

36

21

74

Gain (loss) on bank investment securities

2

—

—

6

—

—

Other revenues from operations

213

191

12

400

333

20

Total other income

740

683

8

1,429

1,294

10

Other expense

Salaries and employee benefits

826

813

2

1,740

1,700

2

Equipment and net occupancy

129

130

—

262

262

—

Outside data processing and software

154

138

12

298

274

9

Professional and other services

89

86

2

182

170

7

FDIC assessments

18

22

-21

41

45

-10

Advertising and marketing

27

25

8

48

47

1

Amortization of core deposit and other

intangible assets

7

9

-27

16

22

-27

Other costs of operations

99

113

-12

200

231

-13

Total other expense

1,349

1,336

1

2,787

2,751

1

Income before taxes

1,063

935

14

1,926

1,696

14

Income taxes

245

219

12

444

396

12

Net income

$      818

$      716

14 %

$   1,482

$   1,300

14 %

Condensed Consolidated Statement of Income, Five Quarter Trend

Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

Interest income

$        2,620

$        2,536

$             2,637

$             2,680

$        2,609

Interest expense

828

784

858

919

896

Net interest income

1,792

1,752

1,779

1,761

1,713

Provision for credit losses

120

140

125

125

125

Net interest income after provision for credit losses

1,672

1,612

1,654

1,636

1,588

Other income

Mortgage banking revenues

127

127

155

147

130

Service charges on deposit accounts

144

139

140

141

137

Trust income

197

183

184

181

182

Brokerage services income

35

35

34

34

31

Trading account and other non-hedging
     derivative gains

22

14

19

18

12

Gain (loss) on bank investment securities

2

4

1

1

—

Other revenues from operations

213

187

163

230

191

Total other income

740

689

696

752

683

Other expense

Salaries and employee benefits

826

914

809

833

813

Equipment and net occupancy

129

133

134

129

130

Outside data processing and software

154

144

146

138

138

Professional and other services

89

93

105

81

86

FDIC assessments

18

23

(8)

13

22

Advertising and marketing

27

21

32

23

25

Amortization of core deposit and other
     intangible assets

7

9

10

10

9

Other costs of operations

99

101

151

136

113

Total other expense

1,349

1,438

1,379

1,363

1,336

Income before taxes

1,063

863

971

1,025

935

Income taxes

245

199

212

233

219

Net income

$            818

$            664

$                759

$                792

$            716

Condensed Consolidated Balance Sheet

June 30,

(Dollars in millions)

2026

2025

Change

ASSETS

Cash and due from banks

$         1,939

$         2,128

-9 %

Interest-bearing deposits at banks

15,499

19,297

-20

Investment securities

38,374

35,568

8

Loans:

Commercial and industrial

66,143

61,660

7

Real estate - commercial

24,492

24,567

—

Real estate - residential

25,384

24,117

5

Consumer

27,174

25,772

5

Total loans

143,193

136,116

5

Less: allowance for loan losses

2,176

2,197

-1

Net loans

141,017

133,919

5

Goodwill

8,465

8,465

—

Core deposit and other intangible assets

48

84

-43

Other assets

13,919

12,123

15

Total assets

$     219,261

$     211,584

4 %

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$       48,295

$       47,485

2 %

Interest-bearing deposits

120,590

116,968

3

Total deposits

168,885

164,453

3

Short-term borrowings

4,614

2,071

123

Long-term borrowings

13,568

12,380

10

Accrued interest and other liabilities

4,248

4,155

2

Total liabilities

191,315

183,059

5

Shareholders' equity:

Preferred

2,434

2,394

2

Common

25,512

26,131

-2

Total shareholders' equity

27,946

28,525

-2

Total liabilities and shareholders' equity

$     219,261

$     211,584

4 %

Condensed Consolidated Balance Sheet, Five Quarter Trend

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

ASSETS

Cash and due from banks

$             1,939

$             1,903

$             1,701

$             1,950

$             2,128

Interest-bearing deposits at banks

15,499

14,445

17,068

16,751

19,297

Investment securities

38,374

38,621

36,649

36,864

35,568

Loans:

Commercial and industrial

66,143

65,391

63,548

61,887

61,660

Real estate - commercial

24,492

23,345

23,819

24,046

24,567

Real estate - residential

25,384

24,857

24,874

24,662

24,117

Consumer

27,174

26,321

26,461

26,379

25,772

Total loans

143,193

139,914

138,702

136,974

136,116

Less: allowance for loan losses

2,176

2,136

2,116

2,161

2,197

Net loans

141,017

137,778

136,586

134,813

133,919

Goodwill

8,465

8,465

8,465

8,465

8,465

Core deposit and other intangible assets

48

55

64

74

84

Other assets

13,919

13,469

12,977

12,360

12,123

Total assets

$        219,261

$        214,736

$        213,510

$        211,277

$        211,584

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$          48,295

$          45,892

$          46,509

$          44,994

$          47,485

Interest-bearing deposits

120,590

117,849

120,400

118,432

116,968

Total deposits

168,885

163,741

166,909

163,426

164,453

Short-term borrowings

4,614

7,851

2,149

2,059

2,071

Long-term borrowings

13,568

11,175

10,911

12,928

12,380

Accrued interest and other liabilities

4,248

3,997

4,364

4,136

4,155

Total liabilities

191,315

186,764

184,333

182,549

183,059

Shareholders' equity:

Preferred

2,434

2,434

2,834

2,394

2,394

Common

25,512

25,538

26,343

26,334

26,131

Total shareholders' equity

27,946

27,972

29,177

28,728

28,525

Total liabilities and shareholders' equity

$        219,261

$        214,736

$        213,510

$        211,277

$        211,584

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates

Three Months Ended

Change in Balance

Six Months Ended

June 30,

March 31,

June 30,

June 30, 2026 from

June 30,

Change

2026

2026

2025

March 31,

June 30,

2026

2025

in

(Dollars in millions)

Balance

Rate

Balance

Rate

Balance

Rate

2026

2025

Balance

Rate

Balance

Rate

Balance

ASSETS

Interest-bearing deposits at banks

$   15,061

3.72 %

$   16,231

3.71 %

$   19,698

4.47 %

-7 %

-24 %

$   15,642

3.72 %

$   19,697

4.48 %

-21 %

Investment securities (1) (2)

38,728

4.29

37,845

4.22

35,335

3.80

2

10

38,289

4.25

34,909

3.88

10

Loans:

Commercial and industrial

66,069

6.00

63,804

6.00

61,036

6.40

4

8

64,942

6.00

61,046

6.38

6

Real estate - commercial (1)

23,553

6.27

23,496

6.11

25,333

6.40

—

-7

23,525

6.19

25,794

6.32

-9

Real estate - residential

25,086

4.64

24,817

4.56

23,684

4.52

1

6

24,952

4.60

23,431

4.48

6

Consumer

26,719

6.46

26,306

6.48

25,354

6.57

2

5

26,514

6.47

24,856

6.57

7

Total loans (1)

141,427

5.89

138,423

5.85

135,407

6.10

2

4

139,933

5.87

135,127

6.08

4

Other (1)

—

—

95

3.49

95

3.47

-100

-100

47

—

96

3.47

-51

Total earning assets (1)

195,216

5.40

192,594

5.35

190,535

5.51

1

2

193,911

5.38

189,829

5.51

2

Goodwill

8,465

8,465

8,465

—

—

8,465

8,465

—

Core deposit and other intangible assets

51

59

89

-13

-42

55

90

-39

Other assets

12,800

12,710

11,172

1

15

12,755

10,912

17

Total assets

$   216,532

$   213,828

$   210,261

1 %

3 %

$   215,186

$   209,296

3 %

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

Savings and interest-checking

      deposits (1)

$   105,752

1.81 %

$   106,570

1.84 %

$   103,934

2.24 %

-1 %

2 %

$   106,159

1.82 %

$   102,741

2.22 %

3 %

Time deposits (1)

13,808

3.02

13,059

3.02

14,171

3.48

6

-3

13,435

3.02

14,140

3.52

-5

Total interest-bearing deposits (1)

119,560

1.95

119,629

1.97

118,105

2.39

—

1

119,594

1.96

116,881

2.38

2

Short-term borrowings

8,016

3.86

5,695

3.86

3,327

4.49

41

141

6,862

3.86

3,100

4.51

121

Long-term borrowings (1)

12,778

5.33

11,064

5.41

10,936

5.70

15

17

11,926

5.37

11,109

5.64

7

Total interest-bearing liabilities (1)

140,354

2.36

136,388

2.32

132,368

2.71

3

6

138,382

2.35

131,090

2.70

6

Noninterest-bearing deposits

43,964

44,547

45,153

-1

-3

44,254

45,294

-2

Other liabilities (1)

4,275

4,245

4,074

1

5

4,259

4,081

4

Total liabilities

188,593

185,180

181,595

2

4

186,895

180,465

4

Shareholders' equity

27,939

28,648

28,666

-2

-3

28,291

28,831

-2

Total liabilities and shareholders' equity

$   216,532

$   213,828

$   210,261

1 %

3 %

$   215,186

$   209,296

3 %

Net interest spread (1)

3.04

3.03

2.80

3.03

2.81

Contribution of interest-free funds (1)

.66

.67

.82

.67

.83

Net interest margin (1)

3.70 %

3.70 %

3.62 %

3.70 %

3.64 %

(1)

In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.

(2)

Yields on investment securities for the three-month and six-month periods ended June 30, 2025 reflect $20 million and $18 million, respectively, of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United Financial, Inc.

Supplemental Information - Loan Balances

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

Commercial and industrial

Commercial and industrial excluding

   owner-occupied real estate by industry:

Financial and insurance

$         13,852

$         13,545

$         12,794

$         12,084

$         12,138

Services

8,559

8,235

7,910

7,689

7,646

Motor vehicle and recreational finance dealers

6,972

7,069

7,191

6,637

6,502

Manufacturing

6,407

6,424

6,112

6,241

6,189

Wholesale

4,343

4,359

4,386

4,246

4,246

Transportation, communications, utilities

4,208

3,937

3,890

3,755

3,807

Retail

3,330

3,316

3,098

3,114

3,079

Construction

2,450

2,311

2,265

2,206

2,275

Health services

1,712

1,841

1,822

1,780

1,879

Real estate investors

1,526

1,668

1,579

1,506

1,314

Other

1,400

1,365

1,303

1,568

1,377

Total commercial and industrial

   excluding owner-occupied real estate

54,759

54,070

52,350

50,826

50,452

Owner-occupied real estate by industry:

Services

2,362

2,377

2,368

2,308

2,402

Motor vehicle and recreational finance dealers

2,180

2,217

2,234

2,162

2,239

Retail

1,926

1,916

1,893

1,825

1,808

Health services

1,464

1,335

1,268

1,320

1,313

Wholesale

1,035

1,029

978

975

951

Manufacturing

712

727

791

783

785

Real estate investors

607

617

616

634

630

Other

1,098

1,103

1,050

1,054

1,080

Total owner-occupied real estate

11,384

11,321

11,198

11,061

11,208

Total commercial and industrial

66,143

65,391

63,548

61,887

61,660

Commercial real estate

Permanent finance by property type:

Apartments/Multifamily

7,124

6,628

6,837

6,548

6,082

Retail/Service

4,259

4,237

4,164

4,320

4,435

Industrial/Warehouse

3,276

2,462

2,297

2,175

2,098

Office

3,147

3,282

3,423

3,487

3,720

Hotel

1,665

1,727

1,743

1,776

1,889

Health Services

1,583

1,507

1,548

1,554

1,669

Other

180

187

180

202

262

Total permanent

21,234

20,030

20,192

20,062

20,155

Construction/Development

3,258

3,315

3,627

3,984

4,412

Total commercial real estate

24,492

23,345

23,819

24,046

24,567

Residential real estate

Residential real estate

25,384

24,857

24,874

24,662

24,117

Consumer

Home equity lines and loans

4,891

4,796

4,807

4,730

4,634

Recreational finance

14,856

14,144

14,092

14,152

13,666

Automobile

4,969

5,016

5,167

5,223

5,260

Other

2,458

2,365

2,395

2,274

2,212

Total consumer

27,174

26,321

26,461

26,379

25,772

Total loans

$       143,193

$       139,914

$       138,702

$       136,974

$       136,116

Supplemental Information - Mortgage Banking Activities

Three Months Ended

Change

Six Months Ended

Change

June 30,

March 31,

June 30,

June 30,

(Dollars in millions)

2026

2026

Amount

%

2026

2025

Amount

%

Residential mortgage banking revenues

Gains on loans originated for sale

$               7

$                8

$       (1)

-9 %

$             15

$            14

$         1

5 %

Loan servicing:

Loan servicing fees

33

32

1

2

65

70

(5)

-6

Changes in fair value of mortgage loan

   servicing right assets, net of hedging activities

(11)

(13)

2

15

(24)

—

(24)

—

Loan sub-servicing and other fees

67

62

5

9

129

95

34

35

Total loan servicing

89

81

8

10

170

165

5

3

Total residential mortgage banking revenues

$             96

$              89

$         7

8 %

$           185

$          179

$         6

3 %

New commitments to originate loans for sale

$           411

$            400

$       11

3 %

$           811

$          612

$     199

33 %

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

Balances at period end

Loans held for sale

$               256

$               327

$               441

$               327

$               222

Commitments to originate loans for sale

258

222

224

329

248

Commitments to sell loans

467

544

645

576

407

Capitalized mortgage loan servicing assets

540

542

287

305

326

Loans serviced for others

35,253

35,586

35,873

36,421

36,952

Loans sub-serviced for others

183,599

123,968

156,938

161,785

157,608

Total loans serviced for others

$        218,852

$        159,554

$        192,811

$        198,206

$        194,560

Three Months Ended

Change

Six Months Ended

Change

June 30,

March 31,

June 30,

June 30,

(Dollars in millions)

2026

2026

Amount

%

2026

2025

Amount

%

Commercial mortgage banking revenues

Gains on loans originated for sale

$              13

$                18

$       (5)

-28 %

$              31

$              30

$         1

3 %

Loan servicing fees and other

18

20

(2)

-11

38

39

(1)

—

Total commercial mortgage banking revenues

$              31

$                38

$       (7)

-19 %

$              69

$              69

$       —

1 %

Loans originated for sale to other investors

$            746

$           1,135

$   (389)

-34 %

$         1,881

$         2,087

$   (206)

-10 %

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

Balances at period end

Loans held for sale

$               259

$               359

$               484

$               278

$               361

Commitments to originate loans for sale

485

529

773

1,074

659

Commitments to sell loans

740

903

1,253

1,292

1,017

Capitalized mortgage loan servicing assets

136

138

132

123

124

Loans serviced for others

31,368

30,934

30,309

28,957

28,416

Loans sub-serviced for others

4,072

4,194

4,231

4,297

4,209

Total loans serviced for others

$          35,440

$          35,128

$          34,540

$          33,254

$          32,625

Supplemental Information - Other Revenues from Operations

Three Months Ended

Six Months Ended

June 30,

March 31,

Change

June 30,

June 30,

Change

(Dollars in millions)

2026

2026

Amount

%

2026

2025

Amount

%

Letter of credit and other credit-related fees

$             55

$                54

$          1

— %

$           109

$           107

$          2

2 %

Merchant discount and credit card fees

47

41

6

17

88

89

(1)

-2

Bank owned life insurance revenue

20

18

2

5

38

35

3

8

Equipment operating lease income

11

11

—

1

22

25

(3)

-12

BLG income

47

33

14

43

80

—

80

—

Other

33

30

3

11

63

77

(14)

-17

Total other revenues from operations

$           213

$              187

$        26

14 %

$           400

$           333

$        67

20 %

Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in millions)

2026

2026

2025

2025

2025

Letter of credit and other credit-related fees

$                  55

$                  54

$                    57

$                    55

$                  58

Merchant discount and credit card fees

47

41

46

51

50

Bank owned life insurance revenue

20

18

19

21

17

Equipment operating lease income

11

11

11

12

14

BLG income

47

33

—

20

—

Other

33

30

30

71

52

Total other revenues from operations

$                213

$                187

$                  163

$                  230

$                191

Supplemental Information - Interest Rate Swap Agreements

(Dollars in billions)

June 30, 2026

September 30, 2026

December 31, 2026

March 31, 2027

June 30, 2027

September 30, 2027

December 31, 2027

Fair value hedges:

Active

$         6.1

$             6.1

$             6.1

$          6.1

$         6.1

$             5.1

$             5.1

Cash flow hedges:

Active

16.0

13.7

14.5

14.0

12.7

10.7

9.6

Forward-starting

10.2

5.0

4.2

2.0

—

—

—

Fair value hedges -

   weighted-average fixed rate:

Active

3.56 %

3.56 %

3.56 %

3.56 %

3.56 %

3.66 %

3.66 %

Cash flow hedges -

   weighted-average fixed rate:

Active

3.82

3.62

3.62

3.60

3.64

3.63

3.57

Forward-starting

3.52

3.64

3.65

3.91

—

—

—

Reconciliation of Quarterly GAAP to Non-GAAP Measures

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(Dollars in millions, except per share)

Income statement data

Net income

Net income

$       818

$       716

$    1,482

$    1,300

Amortization of core deposit and other intangible assets (1)

5

8

12

18

Net operating income

$       823

$       724

$    1,494

$    1,318

Earnings per common share

Diluted earnings per common share

$      5.32

$      4.24

$      9.44

$      7.55

Amortization of core deposit and other intangible assets (1)

.03

.04

.08

.11

Diluted net operating earnings per common share

$      5.35

$      4.28

$      9.52

$      7.66

Other expense

Other expense

$    1,349

$    1,336

$    2,787

$    2,751

Amortization of core deposit and other intangible assets

(7)

(9)

(16)

(22)

Noninterest operating expense

$    1,342

$    1,327

$    2,771

$    2,729

Efficiency ratio

Noninterest operating expense (numerator)

$    1,342

$    1,327

$    2,771

$    2,729

Taxable-equivalent net interest income

$    1,804

$    1,722

$    3,567

$    3,429

Other income

740

683

1,429

1,294

Less: Gain (loss) on bank investment securities

2

—

6

—

Denominator

$    2,542

$    2,405

$    4,990

$    4,723

Efficiency ratio

52.8 %

55.2 %

55.5 %

57.8 %

Balance sheet data

Average assets

Average assets

$ 216,532

$ 210,261

$ 215,186

$ 209,296

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(51)

(89)

(55)

(90)

Deferred taxes

17

26

18

26

Average tangible assets

$ 208,033

$ 201,733

$ 206,684

$ 200,767

Average common equity

Average total equity

$  27,939

$  28,666

$  28,291

$  28,831

Preferred stock

(2,434)

(2,394)

(2,505)

(2,394)

Average common equity

25,505

26,272

25,786

26,437

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(51)

(89)

(55)

(90)

Deferred taxes

17

26

18

26

Average tangible common equity

$  17,006

$  17,744

$  17,284

$  17,908

At end of quarter

Total assets

Total assets

$ 219,261

$ 211,584

Goodwill

(8,465)

(8,465)

Core deposit and other intangible assets

(48)

(84)

Deferred taxes

17

25

Total tangible assets

$ 210,765

$ 203,060

Total common equity

Total equity

$  27,946

$  28,525

Preferred stock

(2,434)

(2,394)

Common equity

25,512

26,131

Goodwill

(8,465)

(8,465)

Core deposit and other intangible assets

(48)

(84)

Deferred taxes

17

25

Total tangible common equity

$  17,016

$  17,607

(1)

After any related tax effect.

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

2026

2026

2025

2025

2025

(Dollars in millions, except per share)

Income statement data

Net income

Net income

$             818

$             664

$             759

$             792

$             716

Amortization of core deposit and other intangible assets (1)

5

7

8

6

8

Net operating income

$             823

$             671

$             767

$             798

$             724

Earnings per common share

Diluted earnings per common share

$             5.32

$             4.13

$             4.67

$             4.82

$             4.24

Amortization of core deposit and other intangible assets (1)

.03

.05

.05

.05

.04

Diluted net operating earnings per common share

$             5.35

$             4.18

$             4.72

$             4.87

$             4.28

Other expense

Other expense

$           1,349

$           1,438

$           1,379

$           1,363

$           1,336

Amortization of core deposit and other intangible assets

(7)

(9)

(10)

(10)

(9)

Noninterest operating expense

$           1,342

$           1,429

$           1,369

$           1,353

$           1,327

Efficiency ratio

Noninterest operating expense (numerator)

$           1,342

$           1,429

$           1,369

$           1,353

$           1,327

Taxable-equivalent net interest income

$           1,804

$           1,763

$           1,790

$           1,773

$           1,722

Other income

740

689

696

752

683

Less: Gain (loss) on bank investment securities

2

4

1

1

—

Denominator

$           2,542

$           2,448

$           2,485

$           2,524

$           2,405

Efficiency ratio

52.8 %

58.3 %

55.1 %

53.6 %

55.2 %

Balance sheet data

Average assets

Average assets

$        216,532

$        213,828

$        212,891

$        211,053

$        210,261

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(51)

(59)

(69)

(79)

(89)

Deferred taxes

17

19

22

24

26

Average tangible assets

$        208,033

$        205,323

$        204,379

$        202,533

$        201,733

Average common equity

Average total equity

$         27,939

$         28,648

$         28,970

$         28,583

$         28,666

Preferred stock

(2,434)

(2,576)

(2,691)

(2,394)

(2,394)

Average common equity

25,505

26,072

26,279

26,189

26,272

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(51)

(59)

(69)

(79)

(89)

Deferred taxes

17

19

22

24

26

Average tangible common equity

$         17,006

$         17,567

$         17,767

$         17,669

$         17,744

At end of quarter

Total assets

Total assets

$        219,261

$        214,736

$        213,510

$        211,277

$        211,584

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(48)

(55)

(64)

(74)

(84)

Deferred taxes

17

18

20

23

25

Total tangible assets

$        210,765

$        206,234

$        205,001

$        202,761

$        203,060

Total common equity

Total equity

$         27,946

$         27,972

$         29,177

$         28,728

$         28,525

Preferred stock

(2,434)

(2,434)

(2,834)

(2,394)

(2,394)

Common equity

25,512

25,538

26,343

26,334

26,131

Goodwill

(8,465)

(8,465)

(8,465)

(8,465)

(8,465)

Core deposit and other intangible assets

(48)

(55)

(64)

(74)

(84)

Deferred taxes

17

18

20

23

25

Total tangible common equity

$         17,016

$         17,036

$         17,834

$         17,818

$         17,607

(1)

After any related tax effect.

SOURCE M&T Bank Corporation

Molson Coors is currently facing a challenging operating environment created by a double whammy of declining volumes and rising input costs. The company has been able to mitigate most of the volume declines by raising prices and benefiting from a favourable mix shift towards more premium brands. To gain better control of its operating expenses, TAP also announced a large restructuring plan last February, targeting $450 million of cost savings over the next three years.

The bank posted second-quarte net income of $1.7 billion, or $2.45 a share, up from $1.39 billion, or $1.93 a share, in the same quarter a year earlier.

NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ:Z, ZG) and certain of the Company’s senior executives for securities fraud after significant stock drops resulting from potential violations of the federal securities laws.

If you invested in Zillow, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/zillow-class-action-lawsuit.

Key Details of the Zillow ($Z, $ZG) Class Action:

Lead Plaintiff Deadline: August 10, 2026Alleged Misconduct: Securities fraud relating to Zillow’s allegedly anticompetitive agreement with Redfin CorporationLargest Alleged Stock Drop: February 11, 2026 – 16.54% Stock Drop on Class C shares; 17.13% Stock Drop on Class A shares.Court: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights
Investors have until August 10, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Zillow Class C and Class A common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned Breidert v. Zillow Group, Inc., et al., No. 26-cv-02016.

Why is Zillow Being Sued for Securities Fraud?

On February 6, 2025, Zillow entered into an agreement with Redfin through which Zillow became the exclusive provider of multifamily rental listings on Redfin’s platform and affiliate websites, including Rent.com. According to the complaint, during the relevant period, Zillow characterized the agreement with Redfin as a “partnership” that would provide Zillow exclusive access to Redfin’s advertising platform.

As alleged, in truth, under the terms of the agreement, Zillow paid Redfin $100 million to stop competing with Zillow, facilitate the transition of its multifamily rental advertising business to Zillow, and close the remainder of its business.

Why did Zillow’s Stock Drop?

On September 30, 2025, the FTC filed a complaint against Zillow and Redfin alleging violations of the federal antitrust laws. According to the FTC complaint, “Zillow and Redfin executed an unlawful agreement to remove competition from [the online rental marketplaces industry], starting with a $100 million payment to Redfin to exit the [Internet Listing Services] market.” In sum, the FTC alleged, “[t]his agreement is nothing more than an end run around competition on the merits with Redfin for customers…” This news caused the price of Zillow’s Class C and A common stock to decline 4.33% and 4.5%, respectively.

On February 10, 2026, Zillow’s CFO told investors that Zillow experienced increased legal expenses which “will result in approximately 200 basis points headwind to EBITDA margins in Q1.” On this news, the price of Zillow’s Class C and A common stock declined 16.54%, and 17.13%, respectively.

Finally, on May 7, 2026, Reuters reported that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.” This news caused the price of Zillow’s Class C and A common stock to decline 1.9% and 1.76%, respectively.   

Click here for more information: https://www.bfalaw.com/cases/zillow-class-action-lawsuit.

What Can You Do?

If you invested in Zillow, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/zillow-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.” 

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/zillow-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

Morgan Stanley is set to report second-quarter earnings before the opening bell Wednesday.  

Here's what Wall Street expects:

Earnings per share: $2.94, according to LSEGRevenue: $19.64 billion, according to LSEGInvestment banking: $2.17 billion, according to StreetAccountTrading: Equities of $4.41 billion, fixed income of $2.49 billion, according to StreetAccount Morgan Stanley is expected to benefit from higher trading and investment banking revenue in the quarter, as rivals JPMorgan Chase and Goldman Sachs have shown in their reports.

Heightened activity fueled by the global artificial intelligence boom propelled JPMorgan and Goldman to beat estimates for equities trading by a combined $4.4 billion, while investment banking at the two firms topped estimates by a combined $1 billion.

Analysts will want to know what CEO Ted Pick has to say on the outlook for the rest of the year as geopolitical tensions remain high.

This story is developing. Please check back for updates.

For Immediate ReleaseChicago, IL – July 15, 2026 – Today, Zacks Equity Research BYD Co Ltd (BYDDY - Free Report) , NIO Inc. (NIO - Free Report) and Yamaha Motor Co., Ltd. (YMHAY - Free Report)

Industry: Foreign Auto

Link: https://www.zacks.com/commentary/2952884/3-foreign-auto-stocks-to-buy-despite-global-demand-headwinds

The Zacks Automotive – Foreign industry is likely to remain challenging in the coming months. China's domestic auto demand continues to weaken despite strong export growth, while Europe's automakers face shrinking profits amid intense competition from Chinese rivals and slowing sales momentum. In Japan, recent sales gains have been supported by new model launches and tax incentives, but underlying demand remains weak due to economic pressures and cautious consumer spending.

Overall, global automakers are expected to operate in a mixed demand environment with persistent competitive and macroeconomic headwinds. Despite this backdrop, a few stocks like BYD Co Ltd, NIO Inc. and Yamaha Motor Co., Ltd. stand tall thanks to their strategic initiatives.

Industry OverviewCompanies in the Zacks Automotive – Foreign industry are involved in the design, manufacture and sale of vehicles, components and production systems. The industry is highly dependent on business cycles and overall economic conditions. China, Japan, Germany and India are among the leading automotive manufacturing countries.

The widespread adoption of advanced technologies is reshaping the industry, while stricter emission and fuel-efficiency norms, expanding charging infrastructure and supportive government policies are driving the adoption of green vehicles. As automakers intensify their electrification efforts, competition continues to increase. Companies are also investing heavily in the research and development of electric and autonomous vehicles, fuel-efficient technologies and low-emission solutions.

Key Investing ThemesChina Auto Sales Remain Weak: China's auto market continues to face pressure as weak consumer spending and a slowing economy weigh on domestic vehicle demand. Passenger vehicle sales declined for the ninth straight month in June, with first-half domestic sales falling 20.4% year over year to 8.8 million units, per China Passenger Car Association (CPCA), as cited in Reuters.

The slowdown has been particularly severe in the entry-level segment after government subsidies for lower-priced vehicles were reduced, hurting demand for both gasoline and electric models. To offset the weakness at home, Chinese automakers are increasingly relying on overseas markets, with vehicle exports surging 70.6% during the first half of the year. CPCA expects China's domestic auto sales to decline around 11% for the full year, highlighting the challenging demand environment.

Europe Auto Market Faces Profit Pressure: Europe's auto market posted a stronger-than-expected start to 2026, with vehicle sales rising nearly 6% in the first half, per GlobalData, as cited in Forbes. However, the sales growth has not translated into higher profitability for automakers. Intense competition from Chinese manufacturers, which benefit from lower production costs and stronger software capabilities, is forcing European companies to offer steep discounts, particularly on electric vehicles.

As a result, several major automakers have lowered profit forecasts or reduced production. Sales momentum is expected to weaken in the second half, with full-year growth projected to slow to around 1% or even turn negative. Rising geopolitical uncertainties and cautious consumer spending are likely to keep pressure on the European auto industry.

Japan Auto Demand Outlook Remains Soft: Japan's auto market recorded modest growth in the first half of 2026, with new vehicle sales rising 1.8% year over year, per Japan Automobile Dealers Association as cited in the Mainichi Japan. This was supported by a series of new model launches and the removal of the Environmental Performance Tax in April. June sales were particularly strong, increasing 8.6% from a year earlier.

Despite the improvement, the broader demand outlook remains weak. Slow economic growth, higher interest rates, rising living costs, and cautious consumer spending continue to weigh on vehicle purchases. As a result, industry forecasts remain subdued, with GlobalData expecting Japan's light vehicle sales to decline by more than 2% in 2026.

Zacks Industry Rank DiscouragingThe Zacks Automotive – Foreign industry within the broader Zacks Auto-Tires-Trucks sector currently carries a Zacks Industry Rank #202, which places it in the bottom 18% of more than 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates a dim near-term outlook. 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. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Over the past year, the industry’s earnings estimates for 2026 have moved down 38.7%.

Before we present a couple of stocks that are still worth adding to your portfolio, let’s look at the industry’s recent stock market performance and current valuation.

Industry Lags Sector and S&P 500The Zacks Automotive – Foreign industry has underperformed the Auto, Tires and Truck sector and the Zacks S&P 500 composite over the past year. The industry has lost 18% against the S&P 500 and the sector’s growth of 26% and 23%, respectively.

Industry's Current ValuationSince automotive companies are debt-laden, it makes sense to value them based on the Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio.

Based on the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 10.15X compared with the S&P 500’s 18.75X and the sector’s 27.98X.

Over the past five years, the industry has traded as high as 12.71X, as low as 6.97X and at a median of 9.30X.

3 Stocks to BuyYamaha: Based in Japan, Yamaha engages in the manufacture and sale of motorcycles, automotive engines and transportation equipment. It is positioned for profit recovery as its restructuring efforts begin to bear fruit while demand across its core businesses improves. The company expects revenues to rise 5.3% and core operating profit to climb nearly 19% in fiscal 2027, driven by stronger product mix, higher volumes and production efficiencies.

Its musical instruments segment continues to gain traction through new product launches, growing guitar market share and an expected recovery in piano sales, while the audio equipment business is poised to return to growth as digital mixer, speaker and creator-focused product demand rebounds. Yamaha is also investing in long-term growth through India expansion, creator platforms and mobility audio, diversifying earnings beyond traditional hardware.

The Zacks Consensus Estimate for YMHAY’s fiscal 2026 EPS and sales implies year-over-year growth of 595% and 2%, respectively. The consensus mark for fiscal 2026 and 2027 EPS has moved up 29 cents and 11 cents, respectively, over the past 60 days. The stock sports a Zacks Rank #1 (Strong Buy).

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

BYD: This China-based company remains one of the strongest long-term growth stories in the global EV market, backed by its technology leadership, cost advantages and expanding international footprint. The company delivered 557,090 battery-electric vehicles in the second quarter, reflecting resilient demand despite intensifying competition in China's EV market. BYD continues to strengthen its competitive edge through investments in next-generation Blade batteries, autonomous driving chips, LiDAR-equipped affordable EVs and ultra-fast charging technology.

Its vertically integrated business model—manufacturing nearly 80% of key components, including batteries and semiconductors—in-house, enables superior cost control and pricing flexibility during industry price wars. Overseas markets are becoming an increasingly important growth driver, with BYD targeting 1.6 million vehicle exports by 2026 after surpassing one million exports in 2025. The company's push into Europe's premium EV segment through the Denza brand further diversifies its growth opportunities and reduces dependence on China's increasingly competitive domestic market.

The Zacks Consensus Estimate for BYDDY’s 2026 and 2027 EPS implies year-over-year growth of 28% and 22%, respectively. The consensus mark for 2026 and 2027 EPS has moved up 1 cent each over the past 60 days. The stock carries a Zacks Rank #2 (Buy).

NIO: China’s NIO appears to be entering a stronger growth phase, supported by accelerating deliveries, an expanding product portfolio and improving profitability. The company delivered 107,658 vehicles in the second quarter of 2026, up 49.4% year over year, while June deliveries surged 62.9%, reflecting solid demand across its NIO, ONVO and Firefly brands. Its broadening lineup, including the recently launched flagship ES9, enables the company to target multiple customer segments while strengthening its presence in the premium EV market.

Beyond sales growth, NIO is improving operational efficiency through a more decentralized organizational structure, resulting in better cost control and improved vehicle margins. NIO's extensive battery-swapping network of nearly 4,000 stations remains a key competitive advantage, while its subscription-based driver assistance services could generate recurring high-margin revenue, reducing dependence on vehicle sales over the long term.

The Zacks Consensus Estimate for NIO’s 2026 and 2027 bottom line implies a year-over-year improvement of 86% and 137%, respectively. The consensus mark for 2026 and 2027 bottom line has improved by 41% and 600%, respectively, over the past 60 days. The stock carries a Zacks Rank #2.

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

Shares of Lucid (LCID 16.15%) plunged following a rumor that the company was working with restructuring expert AlixPartners. Lucid quickly dismissed the idea that it was preparing for bankruptcy, and the stock recovered much of the ground it had lost. However, the shares still ended the day down by more than 10%. Here's what investors need to know.

Lucid confirms part of the rumor, denies bankruptcy is the goalWhen asked about the rumor, Lucid confirmed to Bloomberg that it was working with AlixPartners. The company explained that AlixPartners is helping it improve execution and operations, and nothing more, adding that it "has sufficient liquidity to carry its operations well into next year."

Image source: Getty Images.

At the end of the first quarter, the electric car company had roughly $700 million in cash on its balance sheet and no short-term investments. A year ago, its cash balance was roughly $1 billion, with over $600 million in short-term investments. Meanwhile, at the end of the first quarter, it had $2 billion in long-term debt and another $500 million in other long-term liabilities, about the same as it had a year prior.

In the first quarter alone, Lucid spent $630 million on research and development and selling, general, and administrative costs. Given the early stage of its development, those aren't optional costs. It generated only $282 million in revenue from car sales while spending nearly $600 million to build them. The business is not performing well, Wall Street is well aware of the problems, and telling investors that it has enough liquidity to last a year or so may not be as reassuring as the company thinks.

To be fair to Lucid, the management team is relatively new. And AlixPartners does offer more than just bankruptcy services. So it is completely reasonable that a new management team would seek additional assistance as it looks to improve the performance of a troubled business.

Today's Change

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However, this is just another sign that Lucid is a very risky investment. Only the most aggressive investors should consider it, and even then, caution is advisable. Notably, Lucid had been falling short of its own production guidance and recently suspended its guidance amid the turnover of the top brass. Even if AlixPartners is simply there to help the company improve its business, investors have good reason to wonder what the exact goal of the company is at this point. And until there is more clarity on the business situation, most investors should probably watch from the sidelines.

Lucid needs a new planWhat Lucid has been doing hasn't been working out as well as hoped. At this point, the company remains a money-losing start-up that has been falling short of its own goals. With cash running down and material debt, the new management team can use all the help it can get. It isn't a bad thing that Lucid has reached out to AlixPartners for an assist.

However, given the state of the business, it also isn't a bad thing that investors see the involvement of a restructuring expert and fear the worst. Given the circumstances, that's a perfectly reasonable reaction.

USA: Index žádostí o hypotéky MBA k 10. červenci klesl o 2,7 %