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In recent years, investors have closely followed quantum computing. If successful, the technology could increase computing speeds exponentially.

The problem with this technology is the delicate nature of quantum bits (qubits) and high error rates. Such challenges mean that widespread commercial viability is likely several years away.

However, companies of all sizes are working to make the technology viable, and if successful, it could dramatically transform companies and the tech industry at large. Knowing this, if I could only invest $1,000, I would choose IonQ (IONQ -1.60%) as my quantum computing stock. Here's why.

Image source: Getty Images.

What about other quantum computing companies? To be clear, I regard this as one $1,000 investment within a diversified portfolio. IonQ is a risky choice, and I would consider this a speculative investment.

Long-time tech investors might remember that numerous internet information companies emerged before Google's parent company, Alphabet, became the dominant search engine. Likewise, the quantum computing industry is likely to undergo a similar shakeout.

This poses a significant risk to IonQ and to start-up peers such as Rigetti Computing and D-Wave Quantum. These companies, IonQ included, are all-in on the technology, and it is unclear how they will survive if they fail to become top players in the quantum computing industry.

For the more risk-averse investors, Alphabet and IBM are also quantum computing investment options. The fact that these are established tech businesses bodes well for the stocks. Still, they only earn a negligible amount of revenue from the technology, which makes it debatable whether one can call them "quantum computing stocks" in any meaningful sense.

IONQ IonQ$30.78-$0.50 (-1.60%)

NYSE · As of 4:00 PM ET 10/19/26

The state of IonQ IonQ's competitive advantages have also eased many of my concerns about the company. It has taken a different path than Google or IBM by utilizing trapped-ion technology. The trapped ions can hold their quantum states longer. That reduces error rates and differentiates the company from its more established competitors.

Moreover, it operates as a quantum-as-a-service (QaaS) model. Thus, it is the only provider natively integrated with Google Cloud, Microsoft's Azure Quantum, and Amazon's Braket.

Additionally, IonQ is a partner of the industry's top chip company, Nvidia. IonQ seems to be following Nvidia's playbook in quantum, which makes the agreement appropriate.

Under the terms of the deal, Nvidia will link its AI supercomputing rack with IonQ's Superion 256 system. They will also orchestrate joint workloads on Nvidia's CUDA-Q platform, allowing Nvidia's GPUs and IonQ's QPUs to work seamlessly with one another, giving it an edge over competitors.

Despite these attributes, IonQ remains financially risky. Even with a 412% yearly revenue increase in the first half of 2026, it experienced $273 million in negative free cash flow during the same period.

IonQ has more than $2.1 billion in liquidity for now. That would imply nearly four years' worth of liquidity at current burn rates. Still, with commercial viability years away, it may need to eventually issue more shares or debt.

Furthermore, its valuation bears little relation to its condition. Its price-to-sales (P/S) ratio is 44, and the 26 forward P/S ratio offers little comfort to those looking for a better value.

However, if IonQ successfully leverages its competitive advantages and partnerships, the stock could experience considerable gains over time. That alone could make it worthwhile to risk $1,000 on IonQ's future.

Moving forward with IonQ stock It could be worth it for risk-tolerant investors to invest $1,000 in IonQ stock.

As a start-up, IonQ is not in a strong financial position, and since it has no obvious Plan B if it fails to succeed in quantum computing, investors face a serious risk of losing their investments.

Nonetheless, many investors are comfortable taking a $1,000 chance on a speculative stock within a diversified portfolio. Despite its limited resources, it has shown promising results using its trapped-ion technology. Moreover, the fact that it persuaded Nvidia to partner with it dramatically increases its chance of success.

Ultimately, if one has the appetite for risk and the foresight to back a technology with limited commercial viability in the foreseeable future, it may be worth taking a chance on IonQ stock.

GUADALAJARA, Mexico, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reports its consolidated results for the third quarter ended September 30, 2026 (3Q26). The results presented in this report include the effects of the business combination effective May 1, 2026. The figures are unaudited and have been prepared following International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Summary of Results 3Q26 vs. 3Q25

The sum of aeronautical and non-aeronautical services revenues increased by Ps. 1,041.6 million, or 13.2%. Total revenues increased by Ps. 2,091.2 million, or 21.8%. Excluding the impact of the incorporation of Cross Border Xpress (“CBX”) operations, aeronautical and non-aeronautical services revenues would have increased by Ps. 266.1 million, or 3.4%, while total revenues would have increased by Ps. 1,315.7 million, or 13.7%.Cost of services increased by Ps. 409.2 million, or 26.8%. Excluding the impact of the incorporation of CBX operations, the cost of services would have increased by Ps. 192.5 million, or 12.6%.Income from operations increased by Ps. 897.7 million, or 21.6%. Excluding the contribution from CBX operations, operating income would have increased by Ps. 382.4 million, or 9.2%.EBITDA increased by Ps. 979.0 million, or 19.2%, an increase from Ps. 5,085.6 million in 3Q25 to Ps. 6,064.6 million in 3Q26. EBITDA margin (excluding the effects of IFRIC-12) went from 64.3% in 3Q25 to 67.8% in 3Q26. Comprehensive income increased by Ps. 807.3 million, or 32.8%, from an income of Ps. 2,457.8 million in 3Q25 to an income of Ps. 3,265.1 million in 3Q26. Business Combination:

As of May 1, 2026, GAP’s consolidated results reflect the effects of the business combination, which included the integration of CBX operations and the internalization of technical assistance and technology transfer services. This transaction was approved by the Shareholders’ Meeting held on December 11, 2025, and formalized through the execution of the merger agreement signed on April 30, 2026.

The Company is currently in the process of determining the fair values of the assets acquired and liabilities assumed as a result of the business combination. Accordingly, the amounts related to this transaction presented in the consolidated financial statements included in this report are preliminary and subject to adjustment.

Passenger Traffic

During 3Q26, the 14 airports operated by GAP recorded a decrease of 222.0 thousand total passengers, representing a 1.4% decrease compared to 3Q25.

During this period, the following new routes were inaugurated:

Domestic     AirlineDepartureArrivalOpening dateFrequenciesVivaManzanilloSanta LucíaJuly 2, 20263 weeklyMexicanaHermosilloSanta LucíaJuly 20, 20266 weeklyMexicanaGuanajuatoSanta LucíaJuly 20, 20266 weekly       Note: Frequencies can vary without prior notice.

International     AirlineDepartureArrivalOpening dateFrequenciesLiat AirMontego BayGuadeloupeJuly 19, 20262 weekly       Note: Frequencies can vary without prior notice.

 Domestic Terminal Passengers – 14 airports (in thousands):  Airport3Q253Q26Change9M259M26ChangeGuadalajara3,183.13,361.45.6%9,295.29,583.03.1%Tijuana*2,237.32,145.6(4.1%)6,434.06,087.8(5.4%)Los Cabos762.1793.94.2%2,170.72,145.5(1.2%)Puerto Vallarta870.7843.6(3.1%)2,354.62,267.6(3.7%)Montego Bay0.00.0(100.0%)0.00.0(100.0%)Guanajuato575.9573.3(0.5%)1,668.31,617.9(3.0%)Hermosillo537.1516.8(3.8%)1,591.31,494.6(6.1%)Kingston0.80.4(48.2%)1.01.327.9%Morelia208.5191.6(8.1%)567.7556.3(2.0%)La Paz347.2372.77.4%955.91,044.19.2%Mexicali330.4284.1(14.0%)929.2808.4(13.0%)Aguascalientes164.0188.014.6%483.2487.70.9%Los Mochis178.5177.9(0.3%)522.9516.7(1.2%)Manzanillo31.537.318.5%97.698.61.0%Total9,427.19,486.70.6%27,071.626,709.5(1.3%) International Terminal Passengers – 14 airports (in thousands):      3Q253Q26Change9M259M26ChangeGuadalajara1,502.01,698.813.1%4,396.24,689.86.7%Tijuana*974.61,049.17.7%3,041.22,896.8(4.7%)Los Cabos893.2748.7(16.2%)3,500.53,205.7(8.4%)Puerto Vallarta498.3374.6(24.8%)2,819.92,272.6(19.4%)Montego Bay1,243.6957.7(23.0%)3,847.22,866.9(25.5%)Guanajuato266.4261.2(1.9%)782.1741.2(5.2%)Hermosillo19.121.110.1%59.364.48.6%Kingston528.2534.61.2%1,409.71,384.8(1.8%)Morelia195.7196.80.6%525.7604.214.9%La Paz7.98.79.8%25.534.033.5%Mexicali1.92.16.5%5.55.84.0%Aguascalientes89.585.9(4.1%)245.7248.11.0%Los Mochis2.22.827.2%6.16.711.5%Manzanillo10.29.1(11.0%)72.462.1(14.2%)Total6,232.75,951.1(4.5%)20,736.919,083.0(8.0%)         *CBX users are classified as international passengers.

Total Terminal Passengers – 14 airports (in thousands):Airport3Q253Q26Change9M259M26ChangeGuadalajara4,685.15,060.28.0%13,691.414,272.94.2%Tijuana*3,211.93,194.8(0.5%)9,475.28,984.6(5.2%)Los Cabos1,655.31,542.6(6.8%)5,671.15,351.2(5.6%)Puerto Vallarta1,369.01,218.3(11.0%)5,174.54,540.2(12.3%)Montego Bay1,243.6957.7(23.0%)3,847.22,866.9(25.5%)Guanajuato842.3834.5(0.9%)2,450.42,359.1(3.7%)Hermosillo556.2537.9(3.3%)1,650.51,559.0(5.5%)Kingston529.1535.01.1%1,410.71,386.0(1.8%)Morelia404.2388.4(3.9%)1,093.41,160.56.1%La Paz355.1381.47.4%981.41,078.29.9%Mexicali332.3286.1(13.9%)934.7814.1(12.9%)Aguascalientes253.6273.98.0%728.9735.81.0%Los Mochis180.7180.7(0.0%)529.0523.5(1.0%)Manzanillo41.646.311.3%170.0160.7(5.4%)Total15,659.815,437.8(1.4%)47,808.545,792.6(4.2%)         *CBX users are classified as international passengers.

CBX Users (in thousands):       Airport3Q253Q26Change9M259M26ChangeTijuana954.41,034.38.4%2,984.02,856.4(4.3%) Consolidated Results for the Third Quarter (in thousands of pesos):      3Q253Q26ChangeRevenues   Aeronautical services5,474,0435,616,0032.6%Non-aeronautical services2,431,4803,331,08737.0%Improvements to concession assets (IFRIC-12)1,671,0602,720,72862.8%Total revenues9,576,58311,667,81821.8%    Operating costs   Costs of services:1,525,5501,934,78926.8%Employee costs633,119714,24812.8%Maintenance307,625358,30416.5%Safety, security & insurance243,706280,58115.1%Utilities174,887171,364(2.0%)Professional services43,38352,05220.0%Business operated directly by us84,69787,6143.4%Other operating expenses38,133169,927345.6%CBX operating expenses-  100,699100.0%    Technical assistance fees226,32243,001(81.0%)Concession taxes1,075,399926,781(13.8%)Depreciation and amortization935,6831,016,9058.7%Cost of improvements to concession assets (IFRIC-12)1,671,0602,720,72862.8%Other (income)(7,397)(22,067)198.3%Total operating costs5,426,6176,620,13722.0%Income from operations4,149,9665,047,68121.6%Financial Result(661,828)(1,043,083)57.6%Income before income taxes 3,488,1384,004,59814.8%Income taxes(792,158)(1,090,497)37.7%Net income 2,695,9802,914,1018.1%Currency translation effect(231,955)352,888(252.1%)Cash flow hedges, net of income tax2,692-  (100.0%)Remeasurements of employee benefit – net income tax(8,929)(1,869)(79.1%)Comprehensive income 2,457,7883,265,12032.8%Non-controlling interest(96,975)(163,201)68.3%Comprehensive income attributable to controlling interest2,360,8133,101,91931.4%         3Q253Q26ChangeEBITDA5,085,6496,064,58619.2%Comprehensive income2,457,7883,265,12030.9%Comprehensive income per share (pesos)4.86425.487412.8%Comprehensive income per ADS (US dollars)2.69323.038312.8%    Operating income margin43.3%43.3%(0.2%)Operating income margin (excluding IFRIC-12)52.5%56.4%7.5%EBITDA margin53.1%52.0%(2.1%)EBITDA margin (excluding IFRIC-12)64.3%67.8%5.4%Costs of services and improvements / total revenues34.5%39.9%15.5%Cost of services / total revenues (excluding IFRIC-12)20.7%21.6%4.4%         - Net income and comprehensive income per share for 3Q26 and 3Q25 were calculated based on 595,018,195 shares outstanding as of September 30, 2026, and 505,277,464 as of September 30, 2025, respectively. Figures in U.S. dollar were converted from pesos using an exchange rate of Ps. 18.0609 per U.S. dollar, as published by the U.S. Federal Reserve Board (noon buying rate) on September 30, 2026.

- For consolidating the Jamaican airports and CBX, an average exchange rate of Ps. 17.2497 per U.S. dollar was used, corresponding to the three-month period ended September 30, 2026.

Revenues (3Q26 vs. 3Q25)

Aeronautical services revenues increased by Ps. 142.0 million, or 2.6%.Non-aeronautical services revenues increased by Ps. 899.6 million, or 37.0%.Revenues from improvements to concession assets increased by Ps. 1,049.6 million, or 62.8%.Total revenues increased by Ps. 2,091.2 million, or 21.8%. The change in aeronautical services revenues was primarily due to the following factors:

Revenues from the Mexican airports increased by Ps. 247.7 million, or 5.3%, compared to 3Q25, primarily driven by the gradual implementation of the maximum tariffs approved for the 2025–2029 regulatory period and an increase in passenger traffic of 0.4%. This growth was partially offset by the 7.5% appreciation of the Mexican peso against the U.S. dollar, which negatively impacted revenues from international tariffs denominated in U.S. dollars.Revenues from the Jamaican airports decreased by Ps. 105.7 million, or 12.7%, compared to 3Q25, mainly due to a 15.8% decrease in passenger traffic during the quarter. In addition, the appreciation of the Mexican peso against the U.S. dollar negatively affected the translation of revenues. The change in non-aeronautical services revenues was primarily driven by the following factors:

Revenues from the Mexican airports increased by Ps. 163.2 million, or 7.6%, compared to 3Q25. Revenues from businesses operated directly by us increased by Ps. 164.0 million, or 14.2%, while revenues from businesses operated by third parties decreased by Ps. 0.8 million, or 1.4%. Revenues from the Jamaican airports decreased by Ps. 39.1 million, or 13.2%, compared to 3Q25, primarily due to the decline in passenger traffic and the peso appreciation against the U.S. dollar during 3Q26. Revenues generated by CBX amounted to Ps. 775.5 million, equivalent to US$44.6 million. During this period, a total of 1,034,274 passengers used the facilities in both directions, representing an average revenue of US$43.1 per user. Non-aeronautical revenues for the Third Quarter (in thousands of pesos):     3Q253Q26ChangeBusinesses operated by third parties:   Food and beverage321,111318,723(0.7%)Car rental216,384206,567(4.5%)Retail182,824181,566(0.7%)Duty-free193,930170,145(12.3%)Leasing of space98,210109,90211.9%Timeshares64,40960,594(5.9%)Ground transportation43,38440,808(5.9%)Other commercial revenues37,08537,8402.0%Communications and financial services29,79125,391(14.8%)Total1,187,1281,151,536(3.0%)    Businesses operated directly by us:   CBX revenues-  775,507100.0%Cargo operation and bonded warehouse558,941674,77720.7%Car parking194,318202,3594.1%Convenience stores158,158176,50411.6%VIP Lounges152,028160,5615.6%Advertising71,44584,45318.2%Hotel operation48,89247,045(3.8%)Total1,183,7832,121,20679.2%Recovery of costs60,56958,346(3.7%)Total Non-aeronautical Revenues 2,431,4803,331,08737.0%     Figures expressed in thousands of Mexican pesos.

‐        Revenues from improvements to concession assets 1

Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 1,049.6 million, or 62.8%, compared to 3Q25. The change was composed of:

Improvements to concession assets at the Company’s Mexican airports, increased by Ps.970.3 million, or 66.8%, in line with the investments committed under the Master Development Program for the 2025–2029 period.Improvements to concession assets at the Company’s Jamaican airports, which increased by Ps. 79.4 million, or 36.3%, primarily due to investments at Kingston Airport. 1 Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12). However, this recognition does not have a cash impact or impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed. This is in accordance with the Company’s Master Development Programs in Mexico and Capital Development Programs in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.

Total operating costs increased by Ps. 1,193.5 million, or 22.0%, compared to 3Q25, mainly due to Ps. 1,049.6 million, or 62.8%, increase in the cost of improvements to concession assets (IFRIC 12); a Ps. 409.2 million, or 26.8%, increase in cost of services; and a Ps. 81.2 million, or 8.7%, increase in depreciation and amortization. These increases were partially offset by Ps. 183.3 million, or 81.0%, decrease in technical assistance fees, and Ps. 148.6 million decrease in concession fees, or 13.8%. Excluding the cost of improvements to concession assets (IFRIC 12), operating expenses increased by Ps. 143.9 million, or 3.8%, compared to 3Q25.

The changes in total operating costs were primarily due to the following factors:

Mexican airports: 

Operating costs increased by Ps. 993.0 million, or 22.7%, compared to 3Q25, primarily due to a Ps. 970.3 million increase in the cost of improvements to concession assets (IFRIC 12); a Ps. 223.8 million increase in cost of services; and a Ps. 42.1 million increase in depreciation and amortization. These increases were partially offset by Ps. 183.3 million decrease in technical assistance fees, and Ps. 46.0 million in concession fees.
The change in the cost of services at our Mexican airports during 3Q26 was mainly due to:

Employee costs increased by Ps. 84.7 million, or 14.8%, mainly due to an increase in operational personnel at the airports and bonded warehouse, as well as salary adjustments.Maintenance increased by Ps. 35.2 million, or 13.5%, mainly due to the opening of new operational areas, and airfield maintenance.Safety, security, and insurance increased by Ps. 24.0 million, or 13.1%, mainly due to an increase in security personnel headcount, minimum wage adjustments, and higher insurance costs related to goods safeguarded within the bonded warehouse. Jamaican Airports:

Operating expenses decreased by Ps. 58.5 million, or 4.2%, compared to 3Q25, mainly due to a decrease of Ps. 102.6 million, or 22.7%, in concession fees, resulting from lower revenues at Montego Bay airport; a Ps. 31.3 million, or 13.6%, decrease in cost of services; and a Ps. 3.8 million, or 2.7%, decrease in depreciation and amortization. These decreases were partially offset by Ps. 79.4 million, or 36.3%, increase in the cost of improvements to concession assets (IFRIC 12). Cross Border Xpress:

CBX’s operating expenses amounted to Ps. 260.2 million during 3Q26, primarily consisting of cost of services of Ps. 216.7 million and depreciation and amortization of Ps. 42.9 million. Operating income margin remained at 43.3% in both quarters. Excluding the effects of IFRIC-12, the operating income margin increased from 52.5% in 3Q25 to 56.4% in 3Q26. Income from operations increased by Ps. 897.7 million, or 21.6%, compared to 3Q25, with CBX contributing Ps. 515.3 million.

EBITDA margin decreased from 53.1% in 3Q25 to 52.0% in 3Q26. Excluding the effects of IFRIC-12, EBITDA margin increased from 64.3% in 3Q25 to 67.8% in 3Q26. EBITDA increased by Ps. 979.0 million, or 19.2%, compared to 3Q25. EBITDA margin growth, excluding the effects of IFRIC 12, was partially offset by the impact on the Jamaican airports from the appreciation of the Mexican peso and lower passenger traffic. CBX contributed Ps. 558.2 million, with an EBITDA margin of 72.0%.

Financial results increased expenses by Ps. 381.3 million, or 57.6%, going from a net expense of Ps. 661.8 million in 3Q25 to a net expense of Ps. 1,043.1 million in 3Q26. This change was mainly the result of:

Foreign exchange gains increased from Ps. 60.9 million in 3Q25 to Ps. 114.1 million in 3Q26, resulting in an additional foreign exchange gain of Ps. 53.2 million due to the appreciation of the Mexican peso. Additionally, the foreign currency translation effect resulted in a gain of Ps. 584.8 million.Interest expense increased by Ps. 473.9 million, or 41.8%, compared to 3Q25, primarily due to higher debt levels to finance airport CAPEX and the acquisition of a 25% equity interest in CBX.Interest income increased by Ps. 38.9 million, or 18.2%, compared to 3Q25, mainly due to the increase in cash and cash equivalents. In 3Q26, net and comprehensive income increased by Ps. 807.3 million, or 32.8%, compared to 3Q25, primarily driven by a Ps. 516.5 million, or 14.8%, increase in income before taxes, mainly attributable to the increase in EBITDA, as previously described.

Net income increased by Ps. 218.1 million, or 8.1%, compared to 3Q25. Income tax increased by Ps. 298.3 million, or 37.7%, reflecting a Ps. 129.1 million increase in current income tax and a Ps. 169.2 million decrease in the deferred tax benefit. This was mainly attributable to a lower inflationary effect, as inflation decreased from 0.7% in 3Q25 to 0.4% in 3Q26, and a Ps. 88.4 million decrease in the recognition of tax loss carryforwards compared to the same quarter of 2025.

Consolidated Results for the Nine Months (in thousands of pesos):     9M259M26ChangeRevenues   Aeronautical services17,236,36417,428,5721.1%Non-aeronautical services7,268,0148,897,27822.4%Improvements to concession assets (IFRIC-12)7,009,3858,001,30414.2%Total revenues31,513,76234,327,1558.9%    Operating costs   Costs of services:4,545,8885,403,13818.9%Employee costs1,885,2032,168,36715.0%Maintenance821,358935,62113.9%Safety, security & insurance691,429774,34912.0%Utilities448,850445,591(0.7%)Professional services149,446193,93829.8%Business operated directly by us258,665276,5706.9%Other operating expenses290,936437,51150.4%CBX operating expenses-  171,191100.0%    Technical assistance fees731,90177,858(89.4%)Concession taxes3,052,3802,789,402(8.6%)Depreciation and amortization2,793,2172,929,2814.9%Cost of improvements to concession assets (IFRIC-12)7,009,3858,001,30414.2%Other (income)(43,542)36,698(184.3%)Total operating costs18,089,22919,237,6826.3%Income from operations13,424,53315,089,47312.4%Financial Result(2,324,863)(2,712,625)16.7%Income before income taxes 11,099,67012,376,84911.5%Income taxes(2,890,438)(3,257,230)12.7%Net income 8,209,2349,119,61911.1%Currency translation effect(730,540)(55,268)(92.4%)Cash flow hedges, net of income tax4,584-  (100.0%)Remeasurements of employee benefit – net income tax23,83716,842(29.3%)Comprehensive income 7,507,1149,081,19321.0%Non-controlling interest(302,853)(404,575)33.6%Comprehensive income attributable to controlling interest7,204,2638,676,61820.4%         9M259M26ChangeEBITDA16,217,75018,018,75511.1%Comprehensive income7,507,1149,081,19321.0%Comprehensive income per share (pesos)14.857415.26202.7%Comprehensive income per ADS (US dollars)8.22638.45032.7%    Operating income margin42.6%44.0%3.2%Operating income margin (excluding IFRIC-12)54.8%57.3%4.6%EBITDA margin51.5%52.5%2.0%EBITDA margin (excluding IFRIC-12)66.2%68.4%3.4%Costs of services and improvements / total revenues37.0%39.0%5.6%Cost of services / total revenues (excluding IFRIC-12)19.0%20.5%8.3%         - Net income and comprehensive income per share for 9M26 and 9M25 were calculated based on 595,018,195 and 505,277,464 shares outstanding, respectively. U.S. dollar figures were converted from pesos using an exchange rate of Ps. 18.0609 per U.S. dollar, as published by the U.S. Federal Reserve Board (noon buying rate) on September 30, 2026.

- For the purpose of consolidating Jamaican airports and CBX, an average exchange rate of Ps. 17.4043 per U.S. dollar was used, corresponding to the nine months ended September 30, 2026.

Revenues (9M26 vs. 9M25)

Aeronautical services revenues increased by Ps. 192.2 million, or 1.1%.Non-aeronautical services revenues increased by Ps. 1,629.3 million, or 22.4%.Revenues from improvements to concession assets increased by Ps. 991.9 million, or 14.2%.Total revenues increased by Ps. 2,813.4 million, or 8.9%. The change in aeronautical services revenues comprised primarily of the following factors:

Revenues from the Mexican airports increased by Ps. 688.4 million, or 4.7%, compared to 9M25, primarily due to the gradual implementation of the maximum tariffs approved for the 2025–2029 regulatory period. This effect was partially offset by the 10.9% appreciation of the Mexican peso against the U.S. dollar and a 2.4% decline in passenger traffic.Revenues from the Jamaican airports decreased by Ps. 496.2 million, or 19.3%, compared to 9M25, mainly due to a 19.1% decline in passenger traffic, as well as the appreciation of the Mexican peso against the U.S. dollar. The change in non-aeronautical services revenues comprised primarily of the following factors:

Revenues from the Mexican airports increased by Ps. 550.6 million, or 8.6%, compared to 9M25, primarily driven by a Ps. 553.8 million, or 17.1%, increase in revenues from businesses operated directly by us.Revenues from the Jamaican airports decreased by Ps. 164.9 million, or 18.3%, compared to 9M25, mainly due to lower passenger traffic and the appreciation of the Mexican peso against the U.S. dollar.CBX generated total revenues of Ps. 1,243.6 million, equivalent to US$71.5 million, during the May to September 2026 period. During this period, a total of 1,660,698 passengers used the CBX facilities in both directions, resulting in average revenue of US$43.1 per user. Non-aeronautical revenues for the Nine Months (in thousands of pesos):     9M259M26ChangeBusinesses operated by third parties:   Food and beverage 1,006,370997,741(0.9%)Car rental632,809632,312(0.1%)Retail565,429549,433(2.8%)Duty-free 618,776523,271(15.4%)Leasing of space328,068321,027(2.1%)Timeshares203,132185,689(8.6%)Other commercial revenues168,120173,9163.4%Ground transportation151,152140,876(6.8%)Communications and financial services 90,03382,759(8.1%)Total3,763,8893,607,023(4.2%)    Businesses operated directly by us:   Cargo operation and bonded warehouse1,507,3231,849,36722.7%CBX revenues-  1,243,606100.0%Car parking 550,659588,3546.8%Convenience stores489,246547,02511.8%VIP Lounges488,364478,873(1.9%)Advertising 149,652192,69428.8%Hotel operation123,215141,10914.5%Other businesses operated directly by us-  56,263100.0%Total3,308,4595,097,29154.1%Recovery of costs195,666192,964(1.4%)Total Non-aeronautical Revenues 7,268,0148,897,27822.4%     Figures expressed in thousands of Mexican pesos.

‐        Revenues from improvements to concession assets 1

Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 991.9 million, or 14.2%, compared to 9M25. The change was composed of:

Improvements to concession assets at the Company’s Mexican airports, which increased by Ps. 626.8 million, or 9.4%, following investments under the Master Development Program for the 2025-2029 period. Improvements to concession assets at the Company’s Jamaican airports, which increased Ps. 365.1 million, or 99.0%. 1 Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12). However, this recognition does not have a cash impact or impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed. This is in accordance with the Company’s Master Development Programs in Mexico and Capital Development Programs in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.

Total operating cost increased by Ps. 1,148.5 million, or 6.3%, compared to 9M25, primarily due to an increase of Ps. 991.9 million, or 14.2%, in the cost of improvements to the concession assets (IFRIC-12); a Ps. 857.3 million, or 18.9%, increase in cost of services; a Ps. 136.1 million, or 4.9%, increase in depreciation and amortization; and a Ps. 80.2 million increase other expenses. These increases were partially offset by Ps. 262.9 million, or 8.6%, decrease in concession taxes, and Ps. 654.0 million, or 89.4%, decrease in technical assistance fees. Excluding costs related to improvements to concession assets (IFRIC 12), operating expenses increased by Ps. 156.5 million, or 1.4%.

Mexican airports: 

Operating costs increased by Ps. 782.9 million, or 5.1%, compared to 9M25, primarily due to a Ps. 626.8 million, or 9.4%, increase in cost of improvements to concession assets (IFRIC 12); a Ps. 553.9 million increase in cost of services; Ps. 79.8 million in other non-recurring expenses; a Ps. 82.9 million increase in concession taxes; and a Ps. 93.5 million increase in depreciation and amortization. These increases were partially offset by a Ps. 654.0 million, or 89.4%, decrease in technical assistance fees.
The change in the cost of services at our Mexican airports during 9M26 was mainly due to:

Employee costs increased by Ps. 287.8 million, or 17.0%, primarily due to salary adjustments and additional operating personnel.
Maintenance increased by Ps. 90.9 million, or 13.3%, primarily due to the opening of new operational and terminal areas, as well as airfield maintenance activities.Safety, security and insurance increased by Ps. 80.1 million, or 15.9%, primarily due to increased security staffing, significant minimum wage increases, and higher insurance costs associated with safeguarding goods at the bonded warehouse. Jamaican Airports:

Operating costs decreased by Ps. 70.3 million, or 2.5%, compared to 9M25, mainly due to a Ps. 345.9 million, or 25.9%, decrease in concession fees, a decrease of Ps. 65.6 million, or 9.1%, in cost of services, and a Ps. 25.1 million, or 5.7% decrease in depreciation and amortization. These effects were partially offset by an increase of Ps. 365.1 million, or 99.0%, in the cost of improvements to concession assets (IFRIC-12). Cross Border Xpress:

As of May 1, 2026, GAP’s consolidated results include CBX’s operating expenses of Ps. 437.2 million, consisting of Ps. 368.9 million in cost of services and Ps. 67.6 million in depreciation and amortization, corresponding to five months of operations. Operating income margin increased from 42.6% in 9M25 to 44.0% in 9M26. Excluding the effects of IFRIC-12, the operating income margin went from 54.8% in 9M25 to 57.3% in 9M26. Income from operations increased by Ps. 1,665.0 million, or 12.4%, compared to 9M25, with CBX contributing Ps. 806.4 million.

EBITDA margin went from 51.5% in 9M25 to 52.5% in 9M26. Excluding the effects of IFRIC-12, EBITDA margin went from 66.2% in 9M25 to 68.4% in 9M26. EBITDA increased by Ps. 1,801.0 million, or 11.1%, compared to 9M25. CBX contributed Ps. 874.0 million, with an EBITDA margin of 70.3%.

Financial results increased in expenses by Ps. 387.8 million, or 16.7%, from a net expense of Ps. 2,324.9 million in 9M25 to Ps. 2,712.6 million in 9M26.   This change was mainly the result of:

Foreign exchange fluctuations, which went from a loss of Ps. 103.3 million in 9M25 to a gain of Ps. 270.2 million in 9M26, resulting in a foreign exchange gain of Ps. 373.5 million due to the appreciation of the Mexican peso. Additionally, the foreign currency translation effect generated a gain of Ps. 675.3 million compared to 9M25.Interest expense increased by Ps.763.2 million, or 25.5%, compared to 9M25, mainly due to higher borrowings of bank loans.Interest income increased by Ps. 2.0 million, or 0.1%, compared to 9M25. In 9M26, net and comprehensive income increased by Ps. 1,574.1 million, or 21.0%, compared to 9M25. Income before taxes increased by Ps. 1,277.2 million, mainly due to the increase in EBITDA, as mentioned above.

During 9M26, net income increased by Ps. 910.4 million, or 11.1%, compared to 9M25, mainly due to the increase in EBITDA, partially offset by an increase in financial expenses. Income tax expense increased by Ps. 366.8 million, reflecting a Ps. 86.5 million increase in current income tax expense and a Ps. 280.1 million decrease in the deferred tax benefit.

Statement of Financial Position

As of September 30, 2026, total assets increased by Ps. 63,515.2 million compared to the same period in 2025, primarily due to: i) a Ps. 37,926.5 million increase in goodwill and intangible assets; ii) a Ps. 12,269.6 million increase in cash and cash equivalents; and iii) a net increase of Ps. 12,519.7 million in land, construction in progress, advances to suppliers, machinery, equipment, and improvements to leased buildings, partially offset by a decrease in improvements to concession assets.

Total liabilities increased by Ps. 28,464.7 million compared to the same period in 2025, primarily due to: i) a Ps. 14,615.7 million increase in short- and long-term bank loans and accrued interest; ii) a Ps. 12,512.9 million increase in dividends payable; and iii) a Ps. 2,767.2 million increase in accounts payable. These increases were partially offset by a Ps. 1,261.6 million decrease in other short- and long-term liabilities. 

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the Norman Manley International Airport operation in Kingston, Jamaica, and took control of the operation in October 2019. In May 2026, GAP completed a business combination pursuant to which it acquired full ownership of the Cross Border Xpress (“CBX”), a cross-border terminal located in San Diego, California and connected to the Tijuana International Airport.

 This press release contains references to EBITDA, a financial performance measure not recognized under IFRS and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS. This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.     In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and Article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party responsible for collecting these complaints, is 800 04 ETICA (38422) or WhatsApp +52 55 6538 5504. The website is www.lineadedenunciagap.com or by email at [email protected]. GAP’s Audit Committee will be notified of all complaints for immediate investigation. 

Exhibit A: Operating results by airport (in thousands of pesos):

Airport 3Q25  3Q26 Change 9M25  9M26 ChangeGuadalajara      Aeronautical services1,675,3931,818,8388.6%4,826,9095,282,8839.4%Non-aeronautical services366,762418,22814.0%1,076,0931,198,67111.4%Improvements to concession assets (IFRIC 12)32,3961,118,3133352.0%2,381,2483,354,94040.9%Total Revenues2,074,5513,355,38061.7%8,284,2509,836,49318.7%Operating income1,279,8421,362,3346.4%3,704,8073,999,1647.9%EBITDA1,500,4751,588,2665.9%4,344,9934,695,8578.1%       Tijuana      Aeronautical services854,459917,3257.4%2,442,3922,599,9596.5%Non-aeronautical services130,331132,6701.8%380,982390,8412.6%Improvements to concession assets (IFRIC 12)386,094453,86617.6%1,158,2821,361,59817.6%Total Revenues1,370,8841,503,8619.7%3,981,6564,352,3989.3%Operating income 539,959555,6302.9%1,512,3471,571,5063.9%EBITDA668,966678,9621.5%1,893,3641,952,8953.1%       Los Cabos      Aeronautical services682,610690,8921.2%2,533,1802,574,8991.6%Non-aeronautical services299,056266,655(10.8%)1,011,056945,436(6.5%)Improvements to concession assets (IFRIC 12)205,863212,8633.4%617,590638,5883.4%Total Revenues1,187,5291,170,410(1.4%)4,161,8254,158,923(0.1%)Operating income528,725477,586(9.7%)2,174,3382,069,184(4.8%)EBITDA633,293583,399(7.9%)2,480,2432,388,992(3.7%)       Puerto Vallarta      Aeronautical services489,808496,2821.3%2,198,7582,094,026(4.8%)Non-aeronautical services131,037117,574(10.3%)502,084449,621(10.4%)Improvements to concession assets (IFRIC 12)503,536410,908(18.4%)1,510,6091,232,724(18.4%)Total Revenues1,124,3821,024,765(8.9%)4,211,4523,776,371(10.3%)Operating income322,377295,737(8.3%)1,687,8091,505,950(10.8%)EBITDA384,674353,682(8.1%)1,878,8951,689,373(10.1%)       Cargo and bonded warehouse business      Non-aeronautical services557,664675,07821.1%1,506,0451,849,66822.8%Total Revenues557,664675,07821.1%1,506,0451,849,66822.8%Operating income276,034359,16330.1%872,7981,142,52830.9%EBITDA327,347413,58526.3%946,3301,218,81128.8%       Montego Bay      Aeronautical services489,463351,195(28.2%)1,593,2621,069,143(32.9%)Non-aeronautical services233,167192,103(17.6%)709,717559,841(21.1%)Improvements to concession assets (IFRIC 12)50,427106,115110.4%163,781205,16625.3%Total Revenues773,056649,413(16.0%)2,466,7601,834,150(25.6%)Operating income245,526300,33822.3%893,543708,857(20.7%)EBITDA328,900354,5567.8%1,152,712929,002(19.4%)        Exhibit A: Operating results by airport (in thousands of pesos):

Airport 3Q25  3Q26 Change 9M25  9M26 ChangeGuanajuato      Aeronautical services292,742297,5581.6%841,372854,7091.6%Non-aeronautical services49,26649,9961.5%146,806145,531(0.9%)Improvements to concession assets (IFRIC 12)130,22273,383(43.6%)390,665220,150(43.6%)Total Revenues472,230420,937(10.9%)1,378,8441,220,390(11.5%)Operating income219,684204,421(6.9%)627,259592,066(5.6%)EBITDA244,716234,089(4.3%)703,666684,172(2.8%)       Hermosillo      Aeronautical services160,028165,7053.5%465,274479,5463.1%Non-aeronautical services26,56328,0395.6%83,32482,617(0.8%)Improvements to concession assets (IFRIC 12)17,2245,657(67.2%)51,67216,972(67.2%)Total Revenues203,814199,401(2.2%)600,270579,135(3.5%)Operating income87,45667,035(23.4%)263,677243,011(7.8%)EBITDA113,05491,459(19.1%)341,316319,281(6.5%)       Cross Border Xpress (1)      Non-aeronautical services-  775,507100.0%-  1,243,606100.0%Total Revenues-  775,507100.0%-  1,243,606100.0%Operating income-  515,271100.0%-  806,366100.0%EBITDA-  558,210100.0%-  873,999100.0%       Others (2)      Aeronautical services829,540878,2075.9%2,335,2162,473,4085.9%Non-aeronautical services637,634675,2365.9%1,851,9072,031,4469.7%Improvements to concession assets (IFRIC 12)345,298339,622(1.6%)735,538971,16532.0%Total Revenues1,812,4731,893,0664.4%4,922,6615,476,01911.2%Operating income767,852910,16518.5%1,687,9562,450,84245.2%EBITDA1,078,3921,208,37812.1%2,476,2313,266,37331.9%       Total       Aeronautical services5,474,0435,616,0032.6%17,236,36417,428,5721.1%Non-aeronautical services2,431,4803,331,08737.0%7,268,0148,897,27822.4%Improvements to concession assets (IFRIC 12)1,671,0602,720,72862.8%7,009,3858,001,30414.2%Total Revenues9,576,58311,667,81821.8%31,513,76234,327,1558.9%Operating income4,149,9665,047,68121.6%13,424,53415,089,47312.4%EBITDA5,085,6496,064,58619.2%16,217,75018,018,75511.1% (1)Cross Border Xpress figures correspond to operations from May to September 2026.(2)Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali, Morelia, and Kingston airports, and other subsidiaries.    Exhibit B: Consolidated statement of financial position as of September 30 (in thousands of pesos):

 20252026Change %Assets    Current assets    Cash and cash equivalents11,669,49823,939,13912,269,641105.1%Trade accounts receivable - Net3,092,7643,166,29373,5292.4%Other current assets1,300,2251,908,994608,76946.8%Total current assets16,062,48729,014,42612,951,93980.6%     Advanced payments to suppliers2,260,8193,092,179831,36036.8%Machinery, equipment and improvements to leased buildings - Net4,483,7346,709,3012,225,56749.6%Improvements to concession assets - Net21,126,47923,522,4942,396,01511.3%Construction in-progress11,817,08317,755,9995,938,91650.3%Land5,956,5137,084,4041,127,89018.9%Airport concessions - Net8,931,6588,368,862(562,796)(6.3%)Rights to use airport facilities - Net954,626904,473(50,153)(5.3%)Other acquired rights1,868,2851,592,955(275,330)(14.7%)Goodwill/intangible assets-  37,926,45037,926,450100.0%Deferred income taxes - Net8,688,5849,090,910402,3264.6%Other non-current assets756,3101,359,296602,98679.7%Total assets82,906,577146,421,74963,515,17276.6%     Liabilities     Current liabilities    Bank loans and interest payable5,028,63619,434,44714,405,812286.5%Concession fees495,377354,163(141,214)(28.5%)Accounts payable979,1293,746,3722,767,243282.6%Unrealized revenue-  399,405399,405100.0%Other current liabilities1,471,865848,290(623,575)(42.4%)Dividends payable-  12,512,86412,512,864100.0%Total current liabilities7,975,00737,295,54229,320,535367.7%     Non-current Liabilities    Security deposits received1,160,4901,255,20194,7118.2%Bank loans5,309,0865,519,003209,9184.0%Other long-term liabilities1,835,5921,197,567(638,025)(34.8%)Long-term local bonds payable43,283,72242,761,266(522,456)(1.2%)Total liabilities59,563,89688,028,57928,464,68347.8%     Stockholders' Equity    Common stock1,194,3901,406,522212,13217.8%Legal reserve238,878238,878-  0.0%Retained earnings16,980,22816,043,600(936,628)(5.5%)Reserve for share repurchase 2,500,0002,500,000-  0.0%Foreign currency translation reserve95,577(231,014)(326,591)(341.7%)Remeasurements of employee benefit – Net32,12034,7252,6058.1%Premium on share subscription-  35,766,61135,766,611100.0%Total controlling interest21,041,19355,759,32234,718,129165.0%Non-controlling interest2,301,4882,633,848332,36014.4%Total stockholder's equity23,342,68158,393,17035,050,489150.2%     Total liabilities and stockholders' equity82,906,577146,421,74963,515,17276.6%      Non-controlling interest represents the minority shareholders’ ownership interests in certain of our subsidiaries. 

Exhibit C: Consolidated statement of cash flows (in thousands of pesos):

  3Q25  3Q26 Change 9M25  9M26 ChangeCash flows from operating activities:      Consolidated net income  2,695,9802,914,1018.1%8,209,2349,119,61911.1%       Postemployment benefit costs18,06220,27812.3%47,68361,55229.1%Allowance expected credit loss11,130410(96.3%)23,39861,620163.4%Depreciation and amortization935,6831,016,9058.7%2,793,2172,929,2814.9%Loss (gain) on sale of machinery, equipment and improvements to leased assets(435)8,426(2037.0%)9242,045121.2%Interest expense1,028,3801,155,07612.3%3,309,8893,524,7856.5%Provisions10,02619,51494.6%(11,641)55,613(577.7%)Income tax expense792,1581,090,49737.7%2,890,4383,257,23012.7%Unrealized exchange loss(87,406)319,541(465.6%)(30,602)190,223(721.6%) 5,403,5786,544,74821.1%17,232,53919,201,96811.4%Changes in working capital:      (Increase) decrease in      Trade accounts receivable43,028195,515354.4%(450,686)327,939(172.8%)Recoverable tax on assets and other assets(154,167)(133,089)(13.7%)(46,803)(154,320)229.7%Increase (decrease)      Concession taxes payable(39,589)260,658(758.4%)(254,695)130,478(151.2%)Accounts payable1,488,079(266,541)(117.9%)1,441,592(62,747)(104.4%)Cash generated  by operating activities6,740,9296,601,291(2.1%)17,921,94719,443,3198.5%Income taxes paid(2,477,296)(1,102,145)(55.5%)(4,802,085)(3,725,270)(22.4%)Net cash flows provided by operating activities4,263,6335,499,14629.0%13,119,86115,718,04719.8%       Cash flows from investing activities:      Machinery, equipment and improvements to concession assets(4,218,537)(3,679,727)(12.8%)(6,603,300)(8,622,782)30.6%Cash flows from sales of machinery and equipment836(19,113)(2386.2%)2,610(16,499)(732.2%)Other investment activities1,079,384144,894(86.6%)(653,186)47,518(107.3%)Acquisition of a 25% interest in CBX-  -  0.0%-  (8,445,060)100.0%Net cash used by investment activities(3,138,317)(3,553,946)13.2%(7,253,875)(17,036,823)134.9%       Dividends declared and paid(4,254,436)-  (100.0%)(8,508,872)(203,882)(97.6%)Dividends paid to non-controlling interests(411,347)(126,099)(69.3%)(564,228)(126,099)(77.7%)Cash and cash equivalentes from business combination-  -  0.0%-  5,428,000100.0%Bond certificates issued8,500,000-  (100.0%)14,500,00010,718,000(26.1%)Bond certificates paid-  (2,757,588)100.0%(7,000,000)(3,877,588)(44.6%)Bank loans paid(2,233,515)1,120,000(150.1%)(5,688,452)(3,378,971)(40.6%)Bank loans693,8176,000,000764.8%3,942,91510,498,971166.3%Interest paid on bank loans(1,131,482)(1,671,721)47.7%(3,437,967)(3,941,744)14.7%Interest paid on lease(493)(2,672)442.0%(1,775)(8,112)357.1%Payments of obligations for leasing(9,449)(13,176)39.4%(28,348)(34,207)20.7%Net cash flows used in financing activities1,153,0952,548,744121.0%(6,786,727)15,074,367(322.1%)       Effects of exchange rate changes on cash held(306,255)(361,358)18.0%(875,787)(269,651)(69.2%)Net  increase (decrease) in cash and cash equivalents1,972,1554,132,586109.5%(1,796,529)13,485,941(850.7%)Cash and cash equivalents at beginning of the period            9,697,34319,806,553104.2%    13,466,026        10,453,198(22.4%)Cash and cash equivalents at the end of the period11,669,49823,939,139105.1%11,669,49823,939,139105.1%               Exhibit D: Consolidated statements of profit or loss and other comprehensive income (in thousands of pesos):

  3Q25  3Q26 Change 9M25  9M26 ChangeRevenues      Aeronautical services5,474,0435,616,0032.6%17,236,36417,428,5721.1%Non-aeronautical services2,431,4803,331,08737.0%7,268,0148,897,27822.4%Improvements to concession assets (IFRIC-12)1,671,0602,720,72862.8%7,009,3858,001,30414.2%Total revenues9,576,58311,667,81821.8%31,513,76234,327,1558.9%       Operating costs      Costs of services:1,525,5501,934,78926.8%4,545,8885,403,13818.9%Employee costs633,119714,24812.8%1,885,2032,168,36715.0%Maintenance307,625358,30416.5%821,358935,62113.9%Safety, security & insurance243,706280,58115.1%691,429774,34912.0%Utilities174,887171,364(2.0%)448,850445,591(0.7%)Professional services43,38352,05220.0%149,446193,93829.8%Business operated directly by us84,69787,6143.4%258,665276,5706.9%Other operating expenses38,133169,927345.6%290,936437,51150.4%CBX operating expenses-  100,699100.0%-  171,191100.0%       Technical assistance fees226,32243,001(81.0%)731,90177,858(89.4%)Concession taxes1,075,399926,781(13.8%)3,052,3802,789,402(8.6%)Depreciation and amortization935,6831,016,9058.7%2,793,2172,929,2814.9%Cost of improvements to concession assets (IFRIC-12)1,671,0602,720,72862.8%7,009,3858,001,30414.2%Other (income)(7,397)(22,067)198.3%(43,542)36,698(184.3%)Total operating costs5,426,6176,620,13722.0%18,089,22919,237,6826.3%Income from operations4,149,9665,047,68121.6%13,424,53315,089,47312.4%Financial Result(661,828)(1,043,083)57.6%(2,324,863)(2,712,625)16.7%Income before income taxes 3,488,1384,004,59814.8%11,099,67012,376,84911.5%Income taxes (792,158)(1,090,497)37.7%(2,890,438)(3,257,230)12.7%Net income 2,695,9802,914,1018.1%8,209,2349,119,61911.1%Currency translation effect(231,955)352,888(252.1%)(730,540)(55,268)(92.4%)Cash flow hedges, net of income tax2,692-  (100.0%)4,584-  (100.0%)Remeasurements of employee benefit – net income tax(8,929)(1,869)(79.1%)23,83716,842(29.3%)Comprehensive income 2,457,7883,265,12032.8%7,507,1149,081,19321.0%Non-controlling interest(96,975)(163,201)68.3%(302,853)(404,575)33.6%Comprehensive income attributable to controlling interest2,360,8133,101,91931.4%7,204,2638,676,61820.4%        Non-controlling interest represents the minority shareholders’ ownership interests in certain of our subsidiaries.

Exhibit E: Consolidated stockholders’ equity (in thousands of pesos):

 Common StockLegal ReserveReserve for Share RepurchasePremium on
share
suscriptionRetained Earnings  Other comprehensive income  Total
controlling
interest  Non-controlling interest Total Stockholders' EquityBalance as of January 1, 20251,194,390920,1872,500,000  -  16,957,723773,49922,345,7992,275,94024,621,739Decrease in legal reserve-  (681,309)-   681,309-  -  -  -  Dividends declared-  -  -   (8,508,872)-  (8,508,872)(277,305)(8,786,177)Comprehensive income:         Net income-  -  -  -  7,850,068-  7,850,068359,171   8,209,239Foreign currency translation reserve-  -  -  -  -  (674,223)(674,223)(56,318)(730,541)Remeasurements of employee benefit – Net-  -  -  -  -  23,837  23,837-   23,837Reserve for cash flow hedges – Net of income tax -  -  -  -  -  4,5844,584-  4,584Balance as of September 30, 20251,194,390238,8782,500,000-  16,980,228127,69721,041,192    2,301,48823,342,681          Balance as of January 1, 20261,194,390238,8782,500,000       -  18,695,331(158,148)22,470,4512,365,48024,835,931Capital increase212,132     212,132 212,132Dividends declared-  -  -   (12,376,379)-  (12,376,379)(136,206)(12,512,585)Increase from share suscription-  -  -  35,766,611-  -  35,766,611-  35,766,611Comprehensive income:         Net income -  -  -  -  8,714,760-  8,714,760404,8589,119,618Retained earnings from business combination   -  1,009,888-  1,009,888-  1,009,888Foreign currency translation reserve-  -  -  -  -  (54,985)(54,985)(283)(55,268)Remeasurements of employee benefit – Net-  -  -  -  -  16,84216,842-  16,842Balance as of September 30, 20261,406,522238,8782,500,00035,766,61116,043,600(196,291)55,759,320   2,633,84958,393,170                     Non-controlling interest represents the minority shareholders’ ownership interests in certain of our subsidiaries.

Exhibit F: Other operating data:

 3Q253Q26Change9M259M26ChangeTotal passengers15,659.615,437.8(1.4%)47,808.445,792.6(4.2%)Total cargo volume (in WLUs)717.5771.47.5%2,054.82,218.88.0%Total WLUs16,377.116,209.3(1.0%)49,863.248,011.4(3.7%)       Aeronautical & non aeronautical services per passenger (pesos)504.8579.614.8%512.6574.912.2%Aeronautical services per WLU (pesos)334.2346.53.7%345.7363.05.0%Non aeronautical services per passenger (pesos)155.3215.839.0%152.0194.327.8%Cost of services per WLU (pesos)93.2119.428.1%91.2112.523.4%               WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).

Saúl Villarreal, Chief Financial OfficerGisela Murillo, Investor Relations

[email protected]@aeropuertosgap.com.mx
+52 33 3880 1100 ext. 20294

  

Flipkart, the Walmart-owned Indian e-commerce giant, is preparing to challenge India’s food-delivery duopoly of Zomato and Swiggy. It is entering a fiercely competitive market that has defeated even previous attempts by Amazon and Google to break in.

The Bengaluru-based company is testing its food-delivery service internally and has expanded the trial from a few hundred employees to upwards of 8,000, according to two people familiar with the matter. It has also deployed a dedicated fleet of riders through its logistics arm, Ekart, separate from the riders who handle its quick-commerce deliveries, as it prepares for a public launch.

The employee-only service appears as a separate tab on Flipkart’s main shopping app, alongside its Minutes quick-commerce offering and travel bookings, TechCrunch has learned. It draws on restaurants listed through ONDC, a government-backed network that connects online buyers and sellers across different platforms, as well as restaurants that Flipkart signed up directly.

Riders wearing jerseys bearing the “Eat-in by Minutes” branding have also begun fulfilling orders on the streets of Bengaluru, the southern Indian city where Flipkart is headquartered.

As Flipkart expands its food-delivery operations, it is entering a market that the brokerage firm Bernstein estimates is growing 18% to 20% a year. Online delivery, though, still accounts for just over 15% of India’s broader food-services industry. Zomato, owned by Eternal, and Swiggy together serve an estimated 85 million to 95 million paying customers a year, per Bernstein. That figure shows how dominant the two are, and how much room newcomers have to grow online food ordering in the world’s most populous country, which has more than a billion internet subscriptions.

Flipkart is not the only company trying to shake up India’s food-delivery market. Ride-hailing company Rapido, which has already given Uber and its Indian rival Ola a tough fight, has been expanding Ownly, its food-delivery service that charges restaurants zero commission. Meanwhile, Swiggy has launched Toing, a separate app aimed at customers looking for cheaper meals. Both moves reflect growing pressure on the industry’s existing pricing model and the commissions that restaurants pay.

“Monopoly is bad, but duopoly is more pathetic,” said Sagar Daryani, president of the New Delhi-headquartered National Restaurant Association of India, which represents over 500,000 restaurants nationwide. “What one does, the other follows suit.”

Daryani argued that restaurants have long needed alternatives to the two dominant platforms.

Flipkart is not the first deep-pocketed company to try breaking into India’s food-delivery market. In 2020, Amazon launched a food-ordering service in Bengaluru, but it shut the service down two years later. Google’s Areo app, which offered food ordering alongside other services, also failed to gain traction. Uber also left the market in 2020, selling its Uber Eats business in India to Zomato.

Daryani sees one important difference between Flipkart and the companies that tried food delivery before it. Zomato and Swiggy built their businesses around delivering meals before expanding into quick commerce. Flipkart is doing the reverse, using its established e-commerce business and growing quick-commerce operations as a springboard into food delivery.

“Flipkart’s quick commerce benefit will get passed on to food delivery, so it will be leaner, more efficient,” Daryani told TechCrunch.

Restaurants are also hoping that new entrants will bring down the cost of selling meals online. Daryani, also co-founder and CEO of the dumpling chain Wow! Momo Foods, said Flipkart has proposed a base commission of about 10%, compared with the 20% to 25% that restaurants typically pay Zomato and Swiggy.

Commissions are only part of the expense, though. Once advertising, discounts, and other promotional costs are factored in, restaurants can end up spending 40% to 50% of an order’s value on the established platforms, Daryani told TechCrunch. He expects Flipkart to keep that total cost closer to 15% to 16%, which could mean restaurants keep more money from each order.

Nonetheless, getting restaurants on board is one thing and winning over customers is another. Bernstein estimates that new entrants could save customers just ₹20 to ₹30 (around 20–30 cents) per order by operating more efficiently, which may not be enough to draw customers away from Zomato and Swiggy. The two incumbents could also offer deeper discounts to keep them.

Flipkart is not planning to stay in Bengaluru for long. The company has told restaurants that it expects to launch its food-delivery service publicly by the end of October and to expand to five or six cities by the end of this year, Daryani told TechCrunch.

The food-delivery push also comes as Flipkart’s long-awaited stock-market listing remains uncertain. Chief Executive Kalyan Krishnamurthy (pictured above) recently declined to give a timetable for an IPO, even as the company continues to expand into businesses that could bring customers back to its app more frequently.

Flipkart’s expansion comes as competition in India’s e-commerce market intensifies. Quick-commerce platforms that started by delivering groceries in minutes now sell even the latest iPhones and other discretionary purchases, putting them in more direct competition with Flipkart and Amazon.

Flipkart did not respond to a request for comments.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Airbnb (ABNB +1.01%) has mostly been a disappointment for investors after initially surging out of the gate in its 2020 IPO, but in 2026, the stock is finally gaining momentum.

The #1 home-sharing platform has delivered better-than-expected growth, solid margins, and it's leveraging AI to improve user satisfaction. Meanwhile, it is expanding its platform with expanded experiences and guest services offerings.

Over the last two weeks, the stock is up 9.4%, even as the S&P 500 has fallen 1.6%, as the chart below shows.

ABNB data by YCharts

Airbnb's gains have come as the tech sector has tumbled on concerns about an AI bubble and rising interest rates. However, the company has demonstrated its resilience and is well-positioned to thrive in such an environment. Here are three reasons why Airbnb is poised to be a winner in today's stock market.

Image source: Getty Images.

1. It wins on high interest ratesStock investors generally dislike rising interest rates. After all, higher interest rates tend to make the bond market more attractive, leading investors to rotate out of stocks and into bonds. Additionally, higher interest rates put pressure on high-priced stocks like much of the tech sector, as it makes future earnings less valuable due to a higher discount rate in the discounted cash flow.

Normally, a company like Airbnb would be susceptible to that pressure, but the home-sharing leader actually earns significant profit from interest income thanks to the funds it holds in between customer bookings and disbursement. Through the first half of the year, it's earned $363 million in interest income, more than a third of its before-tax profit, and that number is likely to go up as interest rates go up. As of the end of the second quarter, the company held $12.2 billion in "funds receivable and amounts held on behalf of customers," on which it earns interest. That's a substantial advantage of its business model and gives it resilience when many of its tech stock peers are falling in the face of higher interest rates.

2. It won't be disrupted by agentic AIThe launch of Meta Platforms' Muse also exposed a hidden advantage of Airbnb. Unlike its online travel agency (OTA) rivals Expedia and Booking, Airbnb's inventory is mostly specific to its platform. Expedia and Booking, on the other hand, are essentially middlemen, connecting users to hotels and acting as a clearinghouse for hotels that want to get their listings in front of prospective customers.

Tools like Muse make it easy for users to book directly with a given hotel or with the platform that offers the lowest price. It eliminates the friction that might ordinarily lead users to book directly on Expedia and Booking. Airbnb doesn't have this problem, as homestays don't typically offer the option of booking directly. That's one of the benefits Airbnb provides to its hosts, and it should give it an advantage if users continue to adopt AI agents.

ABNB Airbnb$175.46+$1.76 (+1.01%)

NASDAQ · As of 4:00 PM ET 10/19/26

3. The travel sector continues to outperformWhile other discretionary sectors struggle, Airbnb and its travel stock peers have continued to deliver solid growth. Despite concerns about inflation, stock and home values remain at all-time highs, enabling wealthier people to spend on vacations and travel.

A number of other factors support that trend, including record wealth among the baby boomer generation and a preference for spending money on experiences over things among younger adults. Additionally, social media has helped stoke wanderlust, and the pandemic may have convinced people to travel while they have the opportunity.

Those tailwinds might not be permanent for Airbnb, but the current strength of the travel sector shows its advantages over other consumer-facing industries.

Taken together, those three factors make the stock a good bet to continue outperforming.

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

If you purchased or acquired securities in Fluence Energy between November 24, 2025 and September 16, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

New York, New York--(Newsfile Corp. - October 19, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Fluence Energy, Inc. ("Fluence Energy" or the "Company") (NASDAQ: FLNC) and reminds investors of the November 30, 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: (1) that the Company's ability to deliver its backlog and recognize the revenue underlying its fiscal 2026 guidance depended on new contract manufacturing facilities, including facilities that were not completed, not operational, and/or not capable of producing at the volumes the guidance assumed; (2) that the corrective measures the Company had implemented to address production problems at its contract manufacturers were not remediating those problems, which persisted and extended to the Company's new facilities; (3) as a result, a material portion of the backlog that Defendants represented as "securing" or "covering" the Company's fiscal 2026 revenue guidance were likely to be delivered and recognized in fiscal 2026; and (4) that, 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.

On February 4, 2026, after the market closed, the Company reported first quarter 2026 financial results, including a GAAP gross profit margin of approximately 4.9%, a 6.5 percentage point decline year over year, due to "additional estimated costs on two projects." On this news Fluence Energy's stock price fell $10.04, or 34.63%, to close at $18.95 per share on February 5, 2026, on unusually heavy trading volume.

On August 5, 2026, after the market closed, Fluence Energy announced third quarter financial results, including that revenue was "weaker than expected, primarily reflecting production delays at new contract manufacturing facilities," and that it "now expects that $400.0 million in project deliveries will be delayed into fiscal 2027 due to production issues at a new international contract manufacturing facility and construction related delays that affected the completion and start-up of a new U.S. contract manufacturing facility." On this news Fluence Energy's stock price fell $1.02, or 7.17%, to close at $13.21 per share on August 6, 2026, on unusually heavy trading volume.

On September 16, 2026, after the market closed, Fluence Energy announced a mid-quarter guidance update, revealing that the Company was cutting its full year revenue guide by approximately $0.6 billion, to $2.4 billion, and dramatically cut its full year adjusted EBITDA guide from negative $10 million to negative $200 million, attributing the revision to ongoing "delays in the ramp-up of our contract manufacturing facility." On this news Fluence Energy's stock price fell $1.39, or 15.36%, to close at $7.66 per share on September 17, 2026, on unusually heavy trading volume.

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 Fluence Energy's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Fluence Energy class action, go to www.faruqilaw.com/FLNC 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 Fluence Energy Securities Class Action Lawsuit:

What is the Fluence Energy securities fraud lawsuit about?

The lawsuit alleges that Fluence Energy, Inc. (NASDAQ: FLNC) misled investors about its ability to meet fiscal 2026 revenue guidance. The complaint claims production and manufacturing delays undermined the company's projections, leading to revenue shortfalls, guidance cuts, and declines in Fluence Energy's stock price.

Who may be eligible to participate in the lawsuit?

Investors who purchased or acquired Fluence Energy (NASDAQ: FLNC) securities between November 24, 2025 and September 16, 2026 may be eligible. Investors who suffered losses during the Class Period may potentially share in any recovery, even if they do not seek appointment as lead plaintiff.

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

A lead plaintiff is a court-appointed investor who represents the class and helps oversee the litigation. Fluence Energy investors who purchased shares during the Class Period and suffered losses may seek appointment as lead plaintiff by November 30, 2026. Investors do not need to serve as lead plaintiff to participate in any potential recovery.

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 Fluence Energy 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/319749

Source: Faruqi & Faruqi LLP

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In the latest close session, Brinker International (EAT - Free Report) was down 3.06% at $197.89. This move lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 1.11%.

Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 3.78% lagged the Retail-Wholesale sector's gain of 3.83% and outpaced the S&P 500's gain of 1.46%.

The upcoming earnings release of Brinker International will be of great interest to investors. The company's earnings report is expected on October 28, 2026. In that report, analysts expect Brinker International to post earnings of $2.49 per share. This would mark year-over-year growth of 29.02%. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, up 7.19% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.18 per share and revenue of $6.28 billion, indicating changes of +22.72% and +8.05%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.41% higher. As of now, Brinker International holds a Zacks Rank of #3 (Hold).

In terms of valuation, Brinker International is currently trading at a Forward P/E ratio of 15.49. Its industry sports an average Forward P/E of 20.65, so one might conclude that Brinker International is trading at a discount comparatively.

Investors should also note that EAT has a PEG ratio of 1.06 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry currently had an average PEG ratio of 1.8 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

$27.73+$0.74 (+2.74%)

NASDAQ · As of 4:00 PM ET 10/19/26

IREN (IREN +2.74%), a vertically integrated AI data centers and Bitcoin (BTC -0.80%) mining provider, closed at $27.73, up 2.74%. Monday's move followed a rebound in AI infrastructure stocks, and investors are watching financing and execution around the data-center buildout.

Trading volume reached 49.8 million shares, coming in nearly 9.4% above its three-month average of 45.5 million shares. IREN IPO'd in 2021 and shares are down about 27% in 2026.

How the markets moved todayS&P 500 closed at 7,691, up 0.42%, while the Nasdaq Composite finished at 26,431, up 1.11%. Among AI data centers, Bitcoin mining, and high-performance compute infrastructure peers, Applied Digital closed at $19.25, up 6.65%, and Core Scientific closed at $13.73, up 1.85%.

What this means for investorsOn Monday, Oct. 19, investors returned to battered AI infrastructure names after a Goldman Sachs upgrade of CoreWeave lifted sentiment across the group. This marks a tumultuous time for these neocloud providers. Their share prices plunged after an Oct. 14 report from research giant Gartner stated 80% of them are expected to go out of business by 2030 due to massive capital spending.

After the sell-off, Goldman Sachs upgraded CoreWeave stock from a Neutral to a Buy, stating that investors were overestimating the financial risk and underestimating the returns delivered by the artificial intelligence boom. The implications suggest not only CoreWeave will benefit, causing IREN stock to rise as well.

IREN shares have been volatile in 2026, as demonstrated by a massive beta of over four. Earlier in October, the stock fell after research company SemiAnalysis noted customer complaints directed at the neocloud's old Bitcoin data centers, which were transitioned to support AI. The critical report on site reliability hit sentiment and helped drive the stock to fresh 52-week lows. Monday's recovery shows investors are still weighing buildout risks against AI demand.

Could Nvidia (NVDA +1.38%) become a $10 trillion company?

That's a reasonable question to ask. Nvidia sits at the center of the artificial intelligence boom, supplying the chips and systems that power AI data centers. As a result, its revenue and profits have grown at extraordinary rates as companies race to build AI infrastructure.

But I'd be cautious about assuming the stock can keep delivering spectacular returns. My biggest concern is that Nvidia's largest customers are also becoming its competitors. If they succeed in developing their own AI chips, Nvidia could lose some of its pricing power over time.

That matters because Nvidia needs both growth and pricing power to maintain a substantial share of AI computing spending.

Image source: Getty Images.

Nvidia's customers want alternatives Consider Nvidia's biggest customers: Microsoft, Amazon, Alphabet, and Meta.

These technology giants are spending enormous sums building data centers to train and run AI models. To put it into perspective, these four companies are projecting $760 billion in capex this year. Much of that spending benefits Nvidia, which sells the graphics processing units (GPUs) and networking equipment needed to power these facilities.

But buying Nvidia's hardware comes at a massive cost, so unsurprisingly, these companies have strong incentives to find cheaper, more efficient ways to run their AI workloads. One solution is to develop their own chips.

Google has its Tensor Processing Units, or TPUs, Amazon has its Trainium chips, and Microsoft is developing its Maia family of AI accelerators. The logic is straightforward. If a cloud provider can run an AI workload more efficiently with its own chip, it may reduce costs and improve profitability.

For investors, that's the risk worth watching: Nvidia's customers have a financial incentive to become less dependent on Nvidia.

NVDA Nvidia$217.09+$2.96 (+1.38%)

NASDAQ · As of 4:00 PM ET 10/19/26

Why this matters for Nvidia's valuation Nvidia's recent financial results show just how powerful its business has become.

In its second quarter of fiscal 2027, revenue surged 106% year over year to $96.2 billion. Data Center revenue grew 117% to $89 billion, while gross margin reached 75%. These numbers demonstrate Nvidia's enormous advantage today. Its products remain in strong demand, and its software ecosystem makes its platform difficult to replace.

But today's success doesn't guarantee that Nvidia will maintain the same economics indefinitely. If customers increasingly turn to their own chips for certain workloads, Nvidia may face greater pressure to compete on price, efficiency, and performance. It could still grow rapidly, but its growth or profit margins might eventually fall short of optimistic investors' expectations.

That distinction matters when considering a $10 trillion valuation. Assuming the investor is willing to pay a 25x price-to-earnings (PE) ratio for the stock in the long run, Nvidia needs to generate $400 billion in net profit. In fiscal 2026 (ended Jan. 25, 2026), Nvidia's net income was $120 billion.

To be fair, Nvidia's latest quarterly revenue was close to $60 billion -- or annualized at $240 billion -- so the $400 billion net profit doesn't seem too far-fetched. But assuming the demand for Nvidia's products will continue to grow at these levels may be too optimistic. In particular, if its customers capture more of the economic benefits of AI computing, Nvidia might struggle to deliver the earnings growth investors anticipate.

In other words, the risk isn't necessarily that Nvidia's business will shrink, but rather that the company could become much bigger without becoming as profitable as the market expects.

The bull case remains strong Nvidia remains a remarkably strong business. Its CUDA software ecosystem, networking technology, and integrated computing systems make its products difficult to replace. Building a custom chip is one thing; creating an entire platform that developers want to use is another.

And Nvidia's customers could continue buying its products while developing alternatives. AI demand may grow quickly enough for both Nvidia and custom-chip providers to thrive. So, the rise of custom chips doesn't automatically mean Nvidia will lose its leadership. The question is just how much of the industry's future growth Nvidia can capture and how much profit it might retain.

What does it mean for investors? Nvidia reaching a $10 trillion market capitalization isn't impossible. Its technological advantages and exposure to AI give it an enormous opportunity. But I wouldn't assume that today's growth rates and profit margins will continue indefinitely.

As Nvidia's biggest customers develop their own chips, investors should watch whether these alternatives begin to capture a meaningful share of workloads that would otherwise run on Nvidia hardware. That's the risk I would watch before betting on a $10 trillion valuation.

The Nasdaq-100 index is known for including large technology companies like Apple (AAPL -0.15%) and Nvidia (NVDA +1.38%). These growth companies have provided strong gains over the years. However, its stocks tend to be more volatile.

For investors seeking less volatile price swings with reliable dividend income, look no further than Procter & Gamble (PG -1.04%). The shares have a dividend yield of 2.8%, more than five times the Nasdaq-100's 0.5%. It's also nearly three times higher than the S&P 500 index's 1% yield.

Here's a closer look at the company to see why dividend investors should strongly consider Procter & Gamble's shares.

Image source: Getty Images.

Impressive history Procter & Gamble doesn't appear to operate an exciting business. It sells products like shampoos, razors, deodorants, toothpastes, detergents, and diapers. However, it has popular brands with high market shares, such as Head & Shoulders, Tide, Gillette, and Pampers.

Selling these types of products also makes the company's results resilient to economic cycles. That's because people need them, no matter what's going on with their personal financial situation.

In fact, you'd be hard-pressed to find a company with as impressive a dividend history as Procter & Gamble. It has made payments for 136 years and raised them for 70 straight years. That makes the company a Dividend King, a group of companies that have increased dividends for at least 50 straight years.

Most recently, the board of directors approved a solid 3% hike to April's payment. Procter & Gamble currently pays a $ 1.0885-per-share quarterly dividend.

Streak set to continue Of course, an impressive dividend history doesn't mean much if a company can't afford to continue paying and raising payments. Fortunately, Procter & Gamble's ability to pay dividends isn't in question.

One look at the company's cash flow tells you all that you need to know. For the latest fiscal year, which ended on June 30, Procter & Gamble generated free cash flow of $15.1 billion. That easily covered the company's $10.2 billion in dividends.

PG Procter & Gamble$157.69-$1.66 (-1.04%)

NYSE · As of 4:00 PM ET 10/19/26

Free cash flow is an important measure since it's operating cash flow minus capital expenditures. Put another way, it's the amount of cash the company produces from operating the business, less the amount expended for investing in long-term assets.

With a relatively high dividend yield, a long history of dividend increases, and plenty of cash flow to support payments, Procter & Gamble has earned a place in the portfolios of investors seeking dividend-paying stocks.

, /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) ("Kimberly-Clark") announced today that it has priced a private offering (the "Offering") of senior unsecured notes in a combined aggregate principal amount of $4.9 billion (collectively, the "Notes"). The Notes will be issued by Kimberly-Clark in five tranches: (i) $750,000,000 aggregate principal amount of 5.100% Notes due 2028, (ii) $1,000,000,000 aggregate principal amount of 5.300% Notes due 2029, (iii) $1,250,000,000 aggregate principal amount of 5.450% Notes due 2031, (iv) $750,000,000 aggregate principal amount of 5.650% Notes due 2034, and (v) $1,150,000,000 aggregate principal amount of 5.800% Notes due 2036. Kimberly-Clark expects that the closing of the offering will occur on October 29, 2026, subject to the satisfaction of customary closing conditions.

The Offering is being conducted in connection with the previously announced proposed acquisition ("Acquisition") of Kenvue Inc. ("Kenvue"), which is expected to be consummated in the fourth quarter of 2026, subject to the satisfaction of certain customary closing conditions. Kimberly-Clark intends to use the net proceeds from the Offering, together with cash on hand and/or borrowings under its commercial paper program, to fund the cash consideration payable in connection with the Acquisition, and to pay related fees and expenses. Kimberly-Clark expects to use any remaining net proceeds from the Offering for general corporate purposes. The Offering is not conditioned on the consummation of the Acquisition. However, if (i) the Acquisition has not been consummated prior to the date that is five business days after the later of (x) May 31, 2027 or (y) any later date as the parties to the Acquisition agreement may agree as the "Outside Date" thereunder or (ii) Kimberly-Clark notifies the trustee for the Notes that Kimberly-Clark will not pursue the consummation of the Acquisition, then Kimberly-Clark will be required to redeem all outstanding Notes at a special mandatory redemption price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the applicable special mandatory redemption date.

In connection with the Acquisition, on September 28, 2026, Kimberly-Clark commenced an offer to exchange all of Kenvue's existing senior notes in exchange for new senior notes to be issued by Kimberly-Clark (the "Exchange Offers") and solicitation of consents with respect to certain amendments to the indentures governing Kenvue's existing senior notes (the "Consent Solicitations") pursuant to a separate confidential offering memorandum and consent solicitation statement. If (i) the Exchange Offers are withdrawn (but the Acquisition has been consummated and the Notes are issued and outstanding) or (ii) if the Acquisition is consummated, the Notes are issued and outstanding and the Exchange Offers are not completed within four (4) business days after the expiration date of the Exchange Offers (as may be extended pursuant to the terms described in the offering memorandum and consent solicitation statement), the Notes will be fully and unconditionally guaranteed (the "Kenvue Guarantees"), on an unsubordinated unsecured basis, by Kenvue (or its successor, as applicable). The consummation of the Offering is not contingent on the completion of the Exchange Offers and Consent Solicitations and the completion of the Exchange Offers or Consent Solicitations is not guaranteed to occur on the terms described in the offering memorandum and consent solicitation statement or at all. This press release shall not constitute an offer to exchange or a solicitation of consent with respect to the Exchange Offers and Consent Solicitations and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Notes (including the Kenvue Guarantees, if any) have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or securities laws of any state or any other jurisdiction. Accordingly, the Notes will be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and other applicable securities laws, pursuant to registration or exemption therefrom. The Notes are being offered and sold only (a) to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) in compliance with Rule 144A under the Securities Act and (b) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes or any other security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Kimberly-Clark

Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. The KMB stock is a large cap growth and value stock and core S&P 500 equity held by more than 400 Exchange Traded Funds. Kimberly-Clark is considered a dividend aristocrat, having paid a cash dividend to shareholders for 92 consecutive years and increased its dividend for 54 consecutive years. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.

Forward-Looking Statements

Certain statements contained in this press release, including the expected timing of completion of the Acquisition and the Offering and the intended use of net proceeds from the Offering, constitute "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, and are qualified by the inherent risks and uncertainties surrounding future expectations generally. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements based upon the expectations and beliefs of the management of Kimberly-Clark as of the date they were made and speak only as of the date they were made. We undertake no obligation to publicly update any forward-looking statements. Some of these forward-looking statements can be identified by words like "anticipate," "approximately," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will" or "would," the negative of these words, other terms of similar meaning or the use of future dates.

The assumptions used as a basis for the forward-looking statements include many estimates. Many factors outside our control, including risks and uncertainties around the Acquisition, could affect the realization of these estimates. Additional information and factors concerning these risks, uncertainties and assumptions can be found in Kimberly-Clark's filings with the U.S. Securities and Exchange Commission ("SEC"), including the risk factors discussed in Kimberly-Clark's most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC. Forward-looking statements included herein are made only as of the date hereof and Kimberly-Clark undertakes no obligation to update any forward-looking statements, or any other information in this press release, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.

[KMB-F] [KMB-C]

SOURCE Kimberly-Clark Corporation

In the latest close session, Wix.com (WIX - Free Report) was up +2.63% at $76.98. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.

Heading into today, shares of the cloud-based web development company had lost 4.43% over the past month, lagging the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.

Market participants will be closely following the financial results of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 21.43%. Our most recent consensus estimate is calling for quarterly revenue of $566.94 million, up 12.22% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.28 per share and revenue of $2.26 billion, which would represent changes of -41.53% and +13.29%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wixcom. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Wix.com boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Wix.com is currently exchanging hands at a Forward P/E ratio of 17.54. This expresses a premium compared to the average Forward P/E of 14.57 of its industry.

It is also worth noting that WIX currently has a PEG ratio of 1.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.3.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.

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

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

BOK Financial (BOKF - Free Report) came out with quarterly earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.54 per share. This compares to earnings of $2.22 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.94%. A quarter ago, it was expected that this Regional banking operator would post earnings of $2.56 per share when it actually produced earnings of $2.59, delivering a surprise of +1.17%.

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

BOK Financial, which belongs to the Zacks Banks - Southwest industry, posted revenues of $557.93 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.91%. This compares to year-ago revenues of $548.35 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

BOK Financial shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 11.9%.

What's Next for BOK Financial?While BOK 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 BOK 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 $2.60 on $580.41 million in revenues for the coming quarter and $10.29 on $2.27 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 - Southwest is currently in the top 14% 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.

One other stock from the same industry, Prosperity Bancshares (PB - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 28.

This financial holding company is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +12.4%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.

Prosperity Bancshares' revenues are expected to be $498.01 million, up 58.3% from the year-ago quarter.

Tempus AI, Inc. (NASDAQ: TEM) today announced results from a study evaluating an AI-enabled pre-screening panel for patients with advanced non-small cell lung cancer (NSCLC). The panel achieved greater than 80% sensitivity across all 12 biomarkers assessed, with sensitivity exceeding 90% for several biomarkers, supporting its potential to identify patients who may need confirmatory biomarker testing. Results from the study will be presented at the European Society for Medical Oncology (ESMO) Congress 2026 in Madrid.

As the number of biomarker-driven therapies for advanced NSCLC continues to grow, identifying the right biomarkers can require multiple, time-consuming tests and sufficient tumor tissue. AI-enabled pre-screening is designed to help clinicians prioritize diagnostic testing, increase the number of patients who receive appropriate biomarker testing, accelerate access to clinically actionable results and preserve limited tissue samples.

“Precision medicine only works when clinicians have the right information at the right time,” said Ezra Cohen, MD, Chief Medical Officer of Oncology at Tempus. “These findings demonstrate the potential for AI to extract meaningful information from a pathology image that is already part of routine care and help clinicians determine what testing may be most important next. This builds on our efforts to apply AI to routine diagnostic data to help more patients benefit from precision medicine.”

Results are from a multi-center analysis of 60,459 advanced NSCLC cases across 56,969 patients. The AI-enabled panel analyzes routinely generated hematoxylin and eosin (H&E) pathology whole slide images (WSI) to predict potentially clinically relevant genomic and IHC biomarker status, supporting more timely access to personalized therapies. The study was conducted through an ongoing collaboration between Tempus and Pfizer focused on addressing diagnostic barriers and supporting biomarker testing across the broader treatment landscape, regardless of therapy.

The research also builds on Tempus’ broader work in AI-enabled biomarker prediction, including Paige Predict and Tempus Preview. Paige Predict, used as part of clinical laboratory testing, analyzes H&E WSI to predict the likelihood of 123 biomarkers across multiple cancer types when tissue is insufficient for sequencing. Tempus Preview provides early predictions of clinically relevant biomarkers approximately 24 hours after sample receipt in the clinical laboratory.

The H&E pre-screening panel remains in development and is not intended to replace established molecular or immunohistochemistry testing. It is being evaluated as a tool to help inform and prioritize subsequent diagnostic testing.

About Tempus

Tempus is a technology company leading the adoption of AI to advance precision medicine. With one of the world’s largest libraries of multimodal data and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and facilitates discovery, development and delivery of optimized therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as Tempus gathers more data. For more information, visit tempus.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and Tempus’ industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, statements regarding the quality of Tempus’ research and publications; the contributions of Tempus’ research and findings to the larger scientific community and the use of Tempus’ products and services to advance clinical care for patients. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2026, as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261019198806/en/

On Monday, Amazon Web Services released a tool called TorchNeuron that lets AI startups easily move their AI apps onto Amazon’s AI chip, Trainium. In doing so, Amazon is also taking a direct stab at the the software advantage that has helped Nvidia become the default hardware choice for AI apps, and spurred its rise as AI hardware provider of choice.

TorchNeuron works with PyTorch, a free, open-source toolkit that developers use to build, train, and run AI models. It lets AI apps written with PyTorch run on Trainium by changing just one line of configuration, according to Amazon — no code rewrite required.

Amazon says about 85% of AI apps are written with PyTorch. Facebook originally developed it, but since 2022, it has been part of the Linux Foundation, which maintains open-source projects. Nvidia has spent years ensuring its CUDA software — the software infrastructure that allows apps to run on Nvidia GPUs and its other hardware — seamlessly supports AI apps written with PyTorch. As a result, Nvidia’s hardware is now deeply embedded in the toolkit, essentially by default.

TorchNeuron is adapted from PyTorch, so developers who know PyTorch already know how to use it. Amazon isn’t the first company to attempt to easily bring their chips to the platform. PyTorch users can also port their apps to AMD GPUs or even Apple’s chips with a simple configuration change.

However, Amazon argues that porting to Trainium isn’t just easy; it also gives AI startups access to Amazon’s entire cloud. Unsurprisingly, AWS claims that this is a better choice for startups than using neoclouds, many of which are tied to Nvidia and its hardware, like Coreweave, Nebius, and Firmus.

“You’re building on AWS. You’re not betting on a single-purpose compute provider and scrambling to build everything else around it,” Colin Brace, VP of Technology Software at AWS Annapurna Labs (the unit that makes Amazon’s custom chips) told TechCrunch via email. “On AWS,” he continued, “the infrastructure to go from prototype to production is already there, allowing a founder to move fast and scale when they need to.”

AWS says that because the same chip both handles training (teaching the AI model) and inference (putting the finished model to work, as when it answers a user’s question), and is tightly integrated with the cloud infrastructure that startups need, its cloud will save them money, even if AWS doesn’t offer the cheapest per-token price.

“Trainium’s value is price-performance plus the fact that it’s one platform for both training and inference, which improves the economics across a full workload,” Brace said. “Look at Deepgram — they moved to Trainium using native PyTorch, support and they’re processing 70% more audio per dollar at production-grade accuracy.” Deepgram is an AI voice app provider, a competitor to ElevenLabs.

But Amazon isn’t content to just give PyTorch app developers an easy option to move to its cloud.

Amazon also says it is pushing PyTorch to be less automatically centered on Nvidia, and it will contribute the code to do that to the main PyTorch project. In the blog post announcing the new tool, the company wrote:

“Amazon’s approach extends beyond its own hardware. The company is contributing changes upstream to PyTorch itself, working with the PyTorch community to remove code that ties the framework to specific chips. The goal is to make PyTorch more hardware-agnostic for the entire developer community, not just Trainium users.”

While such a tactic is undoubtedly good for those who are selling hardware and cloud services that compete with Nvidia, one of the points of PyTorch is to hide all the pesky difficulties of getting AI code to run on hardware. We’ll have to wait and see if pushing Nvidia out that far gives developers more choice and more affordable options, as Amazon promises, or just more configuration headaches.

Either way, if Amazon succeeds in deeply uncoupling PyTorch from Nvidia, this could have much bigger ramifications for the GPU giant than simply dealing with chip competitors. As Brace said: “The real story is removing the lock-in that kept developers from having a real choice at all.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

, /PRNewswire/ -- 3M (NYSE: MMM) today announced a collaboration with Genius Electronic Optical Co., Ltd. (GSEO, Taiwan: 3406), an optical technology company, to advance technology development and manufacturing for 3M's Expanded Beam Optical (EBO) solutions. In support of these efforts, 3M expects to make a strategic investment to acquire approximately 4.7% of GSEO's common shares as part of the company's private placement of newly issued shares, subject to customary closing conditions.

The collaboration brings together 3M's EBO technology leadership, optical interconnect expertise, materials science, manufacturing scale and customer relationships with GSEO's precision optics manufacturing capabilities and production scale. Together, the companies aim to support EBO commercialization and long-term capacity expansion to meet growing demand from hyperscale data centers and other advanced connectivity applications.

"3M is investing in capabilities and partnerships that can accelerate innovation for our customers," said William Brown, 3M Chairman and CEO. "By selecting GSEO as a manufacturing partner and investing in the company, we are strengthening the path to scale next-generation optical connectivity solutions for high-performance data center infrastructure."

GSEO's existing precision optics manufacturing capabilities and technical development experience are expected to support manufacturing readiness for 3M's EBO ferrules, co-packaged optics solutions and related optical interconnect applications. The collaboration is part of 3M's broader EBO ecosystem strategy, which includes continued work with customers and partners across the optical interconnect market.

"GSEO is pleased to expand its relationship with 3M as we work together to advance optical interconnect solutions for next-generation data center infrastructure," said Micro Kuo, GSEO CEO and President. "This collaboration brings together complementary technology and manufacturing strengths to support continued innovation and help meet the performance demands of high-growth connectivity markets."

3M expects the strategic investment to close in the fourth quarter of 2026, subject to customary closing conditions.

Forward-Looking Statements
Certain statements in this release are considered "forward-looking statements" under the federal securities laws, including the Private Securities Litigation Reform Act of 1995, as amended, and are intended to enjoy the protection of those laws. Forward-looking statements may appear throughout this release and are typically identified by the words "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "evaluate," "expect," "forecast," "future," "goal," "guidance," "impact," "initial," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "project," "seek," "should," "strategy," "target," "will," "would," and other words that are similar to, or have the opposite meanings of, those words. Forward-looking statements speak only as of the date they are made, 3M assumes no duty to update those statements, and readers are cautioned not to place undue reliance on any of those statements. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties, including those described in Part I, Item 1A, "Risk Factors" of 3M's Form 10-K for the year ended December 31, 2025.

About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.

Contacts
3M
Investor Contact:
Diane Farrow, 612-202-2449
Media Contact:
[email protected] 

SOURCE 3M Company

Listen to the audio version of this article (generated by AI).

Blockbuster’s lesson, revisited… when AI kneecaps a moat… two tests for every stock you own… Eric Fry’s “panic early” rule
As I write on Monday morning, the AI trade is trying to claw its way back after last week’s brutal selloff.

But whether this is a fool’s gold rally or the start of a real bull run into the end of the year, one thing is true: AI itself is quietly eroding the business models of some of the market’s best-known companies. It’s critical that you and I recognize how this is happening and prepare our portfolios – not just for a week of volatility but for permanent existential risk.

For an example that’s playing out right now, let’s rewind 26 years…

In September 2000, the founders of a money-losing DVD-by-mail startup flew to Dallas to pitch the CEO of the biggest name in home video on an acquisition.

The startup was Netflix (NFLX). The CEO was Blockbuster’s John Antioco. And the asking price was $50 million.

Netflix co-founder Marc Randolph, who showed up in shorts, a tie-dyed T-shirt and flip-flops, later described the moment the number landed. As he put it in his memoir, “John Antioco was struggling not to laugh.”

Blockbuster turned down the deal, and 10 years later, it filed for bankruptcy.

It’s become the business world’s favorite cautionary tale about a dominant company that didn’t see what was coming. But today, the story is worth retelling for an ironic reason…

Netflix may be staring down its own Blockbuster moment – though for a very different reason.

The streaming giant stumbles
Last Wednesday, Netflix management told employees it will lay off roughly 6% of its workforce, or about 1,000 people. The cuts land mostly on the product, tech, legal and HR teams.

A few weeks ago, co-CEO Ted Sarandos told a Bloomberg conference that the company was “not growing as fast as I want.” As one illustration of this, viewing time grew just 2% in the first half of the year.

Wall Street has noticed. In June 2025, NFLX stock hit a record high. But as I write on Monday, it trades at less than $70 – down nearly half since that high-water mark.

But this selloff is less about an upstart company challenging the industry king, and more about an upstart technology challenging the entire model.

Netflix sees AI coming. In fact, it’s embracing it. Last year, Netflix confirmed that its Argentine sci-fi series The Eternaut featured the first generative AI footage ever to appear in the final cut of a Netflix original.

The scene showed a building collapsing in Buenos Aires. Sarandos told analysts the sequence was finished 10 times faster than with traditional visual effects. He added that, without AI, the cost “would just not have been feasible for a show in that budget.”

But look at the flip side of that – the same tool that lets Netflix make an expensive scene cheaply lets everyone make it cheaply. And that dovetails into the problem…

For two decades, Netflix’s moat rested on a simple fact: great video is expensive and slow to make, and Netflix could outspend nearly everyone. Blockbuster’s downfall was a failure of vision. Netflix faces something more difficult: a technology that erodes its moat, no matter how clearly management sees the danger coming.

“Nothing is happening at all” –until it is
Tom Yeung, lead analyst for our global macro expert Eric Fry in Fry’s Investment Report, has been tracking this threat since March.

Back then, Netflix traded near $100, and investors weren’t worried about its long-term profits. After all, AI video was still mostly a punchline.

Here’s how Tom described AI video quality at the time:

A recently generated viral clip of Jackie Chan fighting Jet Li had more bugs than a picnic in July.

Anyone watching it carefully will notice the kung fu actors reaching straight through objects, growing phantom limbs, and magically teleporting between camera shots.

Then the situation changed, gradually at first and then all at once.

Back to Tom:

In short, people saw the technology the same way parents often view their kids – with progress so gradual that it’s tempting to conclude that nothing is happening at all.

But every once in a while, there comes an epiphany of how far things have come. For AI-generated video, that realization happened over the past six months after a stream of new developments began making headlines.

Two of those developments came from China. First, in April, regulators approved the world’s first theatrical release of a feature-length AI film by a major mainstream movie studio. That film, Sanxingdui: Future Memories, opens in Chinese theaters this Friday.

Then in August, a Chinese company began releasing episodes of an AI-generated TV show, The Sequel to Journey to the West. Tom notes that it racked up 280 million views across its first five episodes and ranked No. 1 among some provincial channels.

The economics behind all this are startling…

According to Chinese state broadcaster CCTV, the cost of producing one minute of an AI short drama fell from 5,000 yuan (about $700) to just a few hundred yuan in the first half of this year.

One Chinese director said a wedding scene that would have cost him about $9,000 to shoot cost about $210 with AI.

Circling back to Netflix, here’s Tom with the fallout:

Shares of Netflix have since fallen below $70, and one analyst even dared put a “Sell” rating on this formerly blue-chip stock – its first negative review since the start of the year.

After all, Netflix is now facing some real competition.

Credit to Tom – Wall Street’s first bearish call (last month) arrived after the stock had already fallen about 30% from Tom’s March warning.

In fairness to Netflix
Before we write Netflix’s obituary, a real bull case remains.

Netflix has more than 300 million subscribers, and its advertising revenue is on track to roughly double this year, to about $3 billion. Meanwhile, management has guided to $51 billion to $51.4 billion in 2026 revenue.

Plus, live sports and events, which AI can’t fake, are a growing part of the mix. And AI may cut Netflix’s own production costs as much as anyone’s.

These tailwinds mean investors trying to understand whether AI will hurt or help Netflix should ask two questions…

What is Netflix’s core asset as a company? And does AI make that asset more or less scarce?

If it’s the content, Netflix’s dominance looks shaky as a wave of cheap content is coming. But if it’s the subscriber relationship and global distribution network, the moat may hold.

Notably, CNBC reports that Netflix’s biggest threat has been YouTube, which is a distribution platform rather than a studio. YouTube doesn’t need to make the best shows. It wins by being the viewing channel people turn to by habit.

That’s a hint that in a world of abundant video, the scarce asset is the platform where viewers spend their time – and with more than 300 million subscribers, Netflix owns one of the biggest. The catch is that Netflix is competing with YouTube for those same hours – and YouTube is free to watch.

Now, beyond Netflix, the question of “what’s actually scarce?” is critical to ask as you evaluate your portfolio – after all, it’s how we spot small cracks in our own holdings before they turn into massive fissures.

Two ways AI breaks a moat
Netflix’s challenge – that something which once made it valuable is becoming abundant – isn’t unique. Plenty of good businesses will face it in the years ahead.

This points to two tests we can run on every stock we own…

The scarcity test.

Pricing power follows scarcity. When AI turns a scarce thing into an abundant thing, the pricing power leaks away, even from well-run companies.

The logic applies to any business whose core product is expensive, skilled human output. That includes tutoring and homework help, stock photography, call-center labor and ad production.

So, does AI make the products of the companies you own more or less scarce?

The friction test.

In our Sept. 29 Digest, we looked at how AI agents like Meta Platforms Inc.’s (META) Muse could commoditize businesses built on customer inertia. These include banks paying 0.1% on checking accounts, insurers counting on lazy renewals, and wireless carriers charging loyal customers more than new ones.

Scarcity and friction are two different mechanisms with one shared outcome: margins that looked permanent can turn out to be temporary.

So, does AI make it easier for customers to find better or cheaper alternatives to the products and services offered by the companies you own?

If the answer is “yes” to either of these two tests, be careful.

When to act: Eric Fry’s rule
The problem for investors is that by the time disruption is obvious, it’s usually priced in. Tom issued his warning in March. Wall Street’s first sell call arrived in September – 30% lower.

Eric – our macro investing expert – has a rule for exactly this kind of situation. Now, to be clear, he wasn’t writing about Netflix. He was writing about risk in the broader market. But the point remains:

Panic early. That’s the only near-certain defense against adversity in the financial markets, and in life generally…

Once you catch a whiff of smoke from a distant wildfire, you don’t hang around until embers are landing on your roof…

Successful panicking begins by saying “no” to obvious risks. Only then can you calmly examine and select opportunities that offer a more favorable route to wealth-building.

Panicking early doesn’t mean dumping every stock that AI touches. It does mean assessing the situation soberly, then making calm, deliberate choices.

For more on the stocks that Eric believes are worth holding today, click here to learn about joining him and Tom in Fry’s Investment Report.

Coming full circle
This brings us back to Netflix, which reports earnings tomorrow.

If you own the stock, this will be a live test of what Netflix’s core asset really is. Watch engagement trends, content spending, and anything management says about generative AI in production.

Strong engagement and a growing ad business would suggest the subscriber relationship is the scarce asset that holds. Another quarter of flat viewing would point the other way.

Either way, let’s not miss the wider point…

Netflix beat Blockbuster by making video easy to get. The next disruption is making video easy to make. Unlike Blockbuster, Netflix sees it coming. What’s still unclear is whether that’s enough.

Now, before we wrap up today, a quick related note…

Want to trade Netflix’s earnings tomorrow but aren’t sure about which way it will break?
If you’re tempted to trade Netflix’s earnings, you don’t necessarily have to correctly predict which way the stock will move to make money.

I learned that from veteran trader Jonathan Rose, editor of Advanced Notice. Sometimes, instead of betting on the direction a stock will move after an earnings report, Jonathan buys both calls and puts – positioning to profit from a big move, whichever way it goes.

Under the right circumstances, it can be very lucrative…

For example, this approach paid off for Jonathan’s subscribers last week with FMC Corp. (FMC). Shares plunged more than 36% after a dramatic guidance cut, and Jonathan’s subscribers took profits on the put side for what he called “more than 200% on our total position.”

For more on how Jonathan finds and structures trades like this – plus his entire trading approach to the markets – you can still catch a free replay of his $10K to $100K Challenge from last week. We’re taking the replay down later this week, so click here to watch it while you can.

We’ll keep tracking Netflix here in the Digest.

Have a good evening,

Jeff Remsburg

The "Magnificent Seven" are a collection of the leading tech stocks on U.S. markets, and they've normally been excellent investments to own. This year, however, as excitement around artificial intelligence (AI) has begun to cool, some of those stocks simply haven't been doing all that well. Tesla, for instance, is down 18%.

The top performer from the group is Apple, which has risen by 26% thus far. That's a great, market-beating return, but it's still nowhere near as good as how one top dividend stock has done: Target (TGT -0.63%). Shares of the big-box retailer are up a staggering 57%.

What's the deal with Target's rally this year? Here's why it's been overdue, and why it may still be worth buying.

Image source: Getty Images.

Target's valuation has been too low for too longAlthough Target's stock has been doing incredibly well this year, in five years, it's still down 39%. For multiple years, it has been performing poorly, and the last time it was in positive territory was in 2021, when it rose by 31%. As consumers have pulled back on discretionary spending, Target's stock has suffered.

Now, however, with a new CEO and the company showing signs of progress in recent earnings reports, the market has begun to pay attention to the retail stock once again.

But to be clear, it's not as if the business is booming. Its growth rate in its most recent quarter (which ended on Aug. 1) was just 5.3%, and the comparable growth rate was only 3.6%. It's also going up against weak comparables, so while its numbers are decent, they aren't amazing.

But when you combine that with its low valuation and high dividend, it has made for a much more compelling investment to own this year, and that's why I believe it can still go higher.

TGT Target$153.29-$0.97 (-0.63%)

NYSE · As of 4:00 PM ET 10/19/26

The stock remains incredibly cheap compared to the overall marketDespite its tremendous rally this year, Target is still trading at a fairly modest price-to-earnings (P/E) multiple of just 16, which is far below the S&P 500 average of around 23. And rival Walmart trades at a P/E of 43, making Target look incredibly cheap by comparison.

An extra incentive to own Target's stock is also for its dividend, which currently yields 3%, far higher than the market average of about 1%. It has also consistently raised its payout for 55 consecutive years.

Target's stock can still be an excellent buy at its current price point, both for its potential upside and the dividend income it can generate.

Pfizer (PFE -0.47%) is a stock that the market has largely forgotten about for multiple years, languishing and struggling to rise in value despite having strong fundamentals and an attractive valuation.

Recently, however, it's been picking up steam. It's up 18% this year, in what is shaping up to be its best year since 2021, when it rose more than 60% due to strong revenue growth from its COVID vaccine and pill.

Despite its recent gains this year, however, the stock remains down around 30% over a five-year period. It may still have plenty of room to rise even higher.

Image source: Getty Images.

A rotation may be taking place, from tech into healthcareFor much of the past few years, it's been tech stocks that have been the hot buys, due to the enormous opportunities in artificial intelligence. But with interest rates on the rise, investors appear to be thinking twice about the sector of late. In the past few days, there's been a notable shift out of tech and into healthcare, as is evident with the following two exchange-traded funds.

XLK data by YCharts

This is a small sample size, of course, but it may be the start of a new trend emerging, with investors pivoting to safer stocks that offer high yields. The healthcare sector is full of them, with Pfizer being one of the best in that regard.

At 5.8%, the stock offers one of the highest yields on the S&P 500, which is more than five times the index's average of just 1%. It's a huge incentive for income investors in search of recurring income.

Pfizer's stock still looks incredibly cheapAt first glance, investors may scoff at Pfizer's stock because of its seemingly expensive valuation. On a trailing earnings basis, its price-to-earnings (P/E) multiple is extremely high at 37. However, the company has been in the midst of restructuring its operations and has incurred impairment charges and other nonrecurring items, which have weighed on its bottom line, making its earnings worse than they otherwise would be.

PFE Pfizer$29.44-$0.14 (-0.47%)

NYSE · As of 4:00 PM ET 10/19/26

But on a forward basis, its P/E multiple is around 10. That's based on how much earnings analysts expect it will generate over the coming year. That can be a better measure of how expensive the stock truly is, without all the noise in its financials.

While there are still long-term question marks about its growth, the stock remains heavily undervalued and should be trading at a far higher multiple than it is right now. As the market begins to recognize that, the healthcare stock could soar far higher.

, /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended September 30, 2026.

THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS

$(1.28) comprehensive loss per common share, comprised of:

$(1.17) net loss per common share
$(0.11) other comprehensive loss ("OCI") per common share on investments marked-to-market through OCI

$0.37 net spread and dollar roll income per common share1

Excludes $0.05 per common share of estimated "catch-up" premium amortization benefit due to change in projected constant prepayment rate ("CPR") estimates

$7.13 tangible net book value per common share as of September 30, 2026

Decreased $1.45 per common share, or 16.9%, from $8.58 per common share as of June 30, 2026

$0.36 dividends declared per common share for the third quarter
-12.7% economic return on tangible common equity for the quarter

Comprised of $0.36 dividends per common share and $1.45 decrease in tangible net book value per common share

OTHER THIRD QUARTER HIGHLIGHTS

$94.4 billion investment portfolio as of September 30, 2026, comprised of:

$91.4 billion Agency mortgage-backed securities ("Agency MBS")
$2.4 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities")
$0.6 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments

7.9x tangible net book value "at risk" leverage as of September 30, 2026

7.6x average tangible net book value "at risk" leverage for the quarter

Unencumbered cash and Agency MBS totaled $6.3 billion as of September 30, 2026

Excludes unencumbered CRT and non-Agency securities
Represents 57% of the Company's tangible equity as of September 30, 2026

6.7% average projected portfolio life CPR as of September 30, 2026

8.2% actual portfolio CPR for the quarter

1.86% annualized net interest spread for the quarter2
Issued 97.6 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $992 million

___________

1.

Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information.

2.

Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread.

MANAGEMENT REMARKS
"Fixed income markets experienced significant pressure in the third quarter, particularly in the final weeks of September, as fixed income investor sentiment turned decidedly bearish, interest rates increased sharply, and interest rate volatility spiked," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "The instability in the Treasury market drove pronounced weakness in the Agency MBS market, and, as a result, Agency MBS was the worst performing sector of the Bloomberg U.S. Aggregate Bond Index during the quarter. Consistent with this material underperformance of our underlying asset class, AGNC's economic return on tangible common equity in the third quarter was -12.7%.

"Despite the challenging macroeconomic environment, there are a number of reasons for optimism with respect to the outlook for Agency MBS once volatility in the Treasury market subsides. First, the return profile of Agency MBS is more attractive at current valuation levels, as mortgage spreads to benchmark rates are approaching the upper end of their multi-year trading range. Second, the fundamentals for Agency MBS are more favorable today than they were at the start of the third quarter. At current rate levels, most of the duration extension for the mortgage universe has already occurred, while prepayment risk has declined as a result of the increase in rates and the resulting reduction in the share of mortgages with a meaningful incentive to refinance. Third, supply-demand technicals remain in balance as mortgage originations remain low at these elevated rate levels and demand has been resilient. Together, these factors support a constructive outlook for Agency MBS performance."

"AGNC's -12.7% economic return on tangible common equity in the third quarter consisted of $0.36 of dividends declared per common share and a $1.45 decline in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's net spread and dollar roll income per common share was $0.37 for the third quarter, and AGNC concluded the third quarter with tangible net book value 'at risk' leverage of 7.9x and a liquidity position of $6.3 billion of unencumbered cash and Agency MBS, or 57% of our tangible equity at quarter end. Finally, AGNC was added to the S&P MidCap 400 Index during the third quarter, an important milestone for the Company and a testament to the scale that AGNC has attained over our 18-year history. This announcement and subsequent index rebalancing activity drove elevated trading volumes in AGNC's common stock, and we took advantage of this outsized liquidity to issue $992 million of common stock through our ATM offering program at a significant premium to tangible net book value per common share."

TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of September 30, 2026, the Company's tangible net book value per common share was $7.13 per share, a decrease of 16.9% for the quarter compared to $8.58 per share as of June 30, 2026. The Company's tangible net book value per common share excludes $526 million, or $0.42 and $0.45 per share, of goodwill as of September 30 and June 30, 2026, respectively.

INVESTMENT PORTFOLIO
As of September 30, 2026, the Company's investment portfolio totaled $94.4 billion, comprised of:

$93.8 billion of Agency MBS and TBA securities, including:

$89.2 billion of fixed-rate securities, comprised of:

$86.6 billion 30-year MBS,
$2.1 billion 30-year TBA securities, net, and
$0.5 billion 15 and 20-year MBS and TBA securities; and

$4.5 billion of collateralized mortgage obligations ("CMOs"), adjustable-rate and other Agency securities; and

$0.6 billion of CRT and non-Agency securities and other mortgage credit investments.

As of September 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company's investment portfolio, unchanged from June 30, 2026.

As of September 30, 2026, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.13%, compared to 5.04% as of June 30, 2026, comprised of the following weighted average coupons:

5.13% for 30-year fixed-rate securities;
4.85% for 15-year fixed-rate securities; and
3.74% for 20-year fixed-rate securities.

The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of September 30, 2026, such positions had a fair value of $2.4 billion and a GAAP net carrying value of $(70) million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $9.7 billion and $52 million, respectively, as of June 30, 2026.

CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of September 30, 2026 decreased to 6.7% from 8.6% as of June 30, 2026. The Company's weighted average actual CPR for the third quarter was 8.2%, compared to 13.0% for the prior quarter.

The weighted average cost basis of the Company's investment portfolio was 100.3% of par value as of September 30, 2026. The Company's investment portfolio generated a net premium amortization benefit of $34 million, or $0.03 per common share, for the third quarter, which includes a "catch-up" premium amortization benefit of $66 million, or $0.05 per common share, due to changes in the Company's CPR projections for certain securities acquired prior to the third quarter. This compares to net premium amortization cost for the prior quarter of $47 million, or $0.04 per common share, including "catch-up" premium amortization cost of $5 million, or less than $0.01 per common share.

ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD
The Company's average asset yield on its investment portfolio, excluding the TBA position, was 5.21% for the third quarter, compared to 4.87% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.92% for the third quarter, compared to 4.89% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the third quarter was 4.95%, compared to 4.89% for the prior quarter.

For the third quarter, the weighted average interest rate on the Company's repurchase agreements was 3.77%, compared to 3.74% for the prior quarter. For the third quarter, the Company's TBA position had an implied financing cost of 3.64%, compared to 3.46% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the third quarter was 3.09%, compared to 2.89% for the prior quarter.

The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the third quarter was 1.86%, compared to 2.00% for the prior quarter.

NET SPREAD AND DOLLAR ROLL INCOME
The Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the third quarter of $0.37 per common share, compared to $0.40 per common share for the prior quarter. Net spread and dollar roll income excludes $0.05 and less than $(0.01) per common share of estimated "catch-up" premium amortization benefit / (cost) for the third quarter and prior quarter, respectively.

The Company's cost of funds, net interest rate spread and net spread and dollar roll income excludes the impact of the Company's U.S. Treasury hedges, option-based hedges, and other supplemental interest rate hedges. For additional information regarding the Company's U.S. Treasury hedges, please refer to the schedule of Key Statistics included in this release.

A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release.

LEVERAGE
As of September 30, 2026, $85.7 billion of repurchase agreements and $2.4 billion of net TBA dollar roll positions (at cost) were used to fund the Company's investment portfolio. The remainder, or approximately $11.0 billion, of the Company's repurchase agreements was used to fund short-term purchases of U.S. Treasury securities ("U.S. Treasury Repo") and is not included in the Company's leverage measurements. Inclusive of its net TBA position and net payable/(receivable) for unsettled investment securities and unsettled equity issuances, the Company's tangible net book value "at risk" leverage ratio was 7.9x as of September 30, 2026, compared to 7.4x as of June 30, 2026. The Company's average "at risk" leverage ratio for the third quarter was 7.6x tangible net book value, compared to 7.4x as of June 30, 2026.

As of September 30, 2026, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.95%, compared to 3.75% as of June 30, 2026, and a weighted average remaining maturity of 10 days, compared to 13 days as of June 30, 2026. As of September 30, 2026, $45.7 billion, or 53%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC.

HEDGING ACTIVITIES
As of September 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 90% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 73% as of June 30, 2026. Excluding option-based hedges, the Company's hedge portfolio covered 97% of its funding liabilities as of September 30, 2026, compared to 82% as of June 30, 2026.

As of September 30, 2026, the Company's pay fixed interest rate swap position totaled $74.6 billion in notional amount, with an average fixed pay rate of 2.96%, an average floating receive rate of 3.90% and an average maturity of 4.3 years, compared to $73.8 billion, 2.76%, 3.68% and 4.0 years, respectively, as of June 30, 2026.

As of September 30, 2026, the Company had a net short U.S. Treasury position of $11.1 billion and receiver swaptions of $6.3 billion outstanding, compared to a $2.1 billion net short U.S. Treasury position, net receiver swaptions of $7.8 billion and a two-year swap equivalent long SOFR futures position of $2.6 billion as of June 30, 2026.

OTHER GAIN (LOSS), NET
For the third quarter, the Company recorded a net loss of $(1,731) million in other gain (loss), net, or $(1.44) per common share, compared to a net gain of $379 million, or $0.33 per common share, for the prior quarter. Other gain (loss), net for the third quarter was comprised of:

$(17) million of net realized losses on sales of investment securities;
$(5,015) million of net unrealized losses on investment securities measured at fair value through net income;
$153 million of interest rate swap periodic income;
$2,052 million of net gains on interest rate swaps;
$(34) million of net losses on interest rate swaptions;
$6 million of net gains on SOFR futures;
$1,228 million of net gains on U.S. Treasury positions;
$28 million of TBA dollar roll income;
$(134) million of net mark-to-market losses on TBA securities; and
$2 million of other miscellaneous gains.

OTHER COMPREHENSIVE LOSS
During the third quarter, the Company recorded other comprehensive income (loss) of $(140) million, or $(0.11) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(7) million, or $(0.01) per common share, in the prior quarter.

COMMON STOCK DIVIDENDS
During the third quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of July 31, August 31, and September 30, 2026, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the third quarter of 2026, the Company has declared a total of $16.8 billion in common stock dividends, or $51.16 per common share.

FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS
The following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures.

AGNC INVESTMENT CORP.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Assets:

Agency securities, at fair value (including pledged securities of $86,455, $80,761, $77,364, $74,149 and $68,821, respectively)

$                    91,394

$                    86,784

$                    84,447

$                    81,003

$                    76,198

Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities)

—

—

—

85

88

Credit risk transfer securities, at fair value (including pledged securities of $468, $525, $545, $558 and $554, respectively)

515

573

593

606

609

Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of $7, $8, $8, $13 and $15, respectively)

95

94

93

95

97

U.S. Treasury securities, at fair value (including pledged securities of $11,992, $11,295, $12,313, $13,056 and $5,431, respectively)

13,028

12,325

12,582

13,477

5,927

Cash and cash equivalents

468

457

493

450

450

Restricted cash

1,765

1,329

1,864

1,292

1,461

Derivative assets, at fair value

851

260

178

169

145

Receivable for investment securities sold (including pledged securities of $198, $201, $0, $149 and $1,340, respectively)

230

401

—

152

1,502

Receivable under reverse repurchase agreements

23,826

18,433

17,644

16,615

21,399

Goodwill

526

526

526

526

526

Other assets (including pledged securities of $0, $0, $0, $0 and $74, respectively)

734

578

477

607

567

Total assets

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Liabilities:

Repurchase agreements

$                    96,719

$                    89,808

$                    87,616

$                    85,286

$                    74,152

Debt of consolidated variable interest entities, at fair value

—

—

—

56

58

Payable for investment securities purchased

279

312

933

193

1,225

Derivative liabilities, at fair value

646

137

440

6

87

Dividends payable

197

184

182

182

170

Obligation to return securities borrowed under reverse repurchase agreements, at fair value

23,542

18,150

17,032

16,452

20,802

Accounts payable and other liabilities

489

626

513

509

1,031

Total liabilities

121,872

109,217

106,716

102,684

97,525

Stockholders' equity:

Preferred Stock - aggregate liquidation preference of $2,033

1,968

1,968

1,968

1,968

1,968

Common stock - $0.01 par value; 1,261.8, 1,164.2, 1,147.8, 1,107.6 and 1,072.7 shares issued and outstanding, respectively

13

12

11

11

11

Additional paid-in capital

20,827

19,830

19,656

19,261

18,892

Retained deficit

(10,770)

(8,929)

(9,123)

(8,524)

(9,038)

Accumulated other comprehensive loss

(478)

(338)

(331)

(323)

(389)

Total stockholders' equity

11,560

12,543

12,181

12,393

11,444

Total liabilities and stockholders' equity

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

AGNC INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Interest income:

Interest income

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Interest expense

794

709

731

738

755

Net interest income

402

305

319

206

148

Other gain (loss), net:

Realized (loss) gain on sale of investment securities, net

(17)

(16)

74

(26)

(81)

Unrealized (loss) gain on investment securities measured at fair value through net income, net

(5,015)

(90)

(889)

475

805

Gain (loss) on derivative instruments and other investments, net

3,301

485

382

340

(36)

Total other (loss) gain, net

(1,731)

379

(433)

789

688

Expenses:

Compensation and benefits

16

19

23

30

20

Other operating expense

12

11

11

11

10

Total operating expense

28

30

34

41

30

Net income (loss)

(1,357)

654

(148)

954

806

Dividend on preferred stock

45

44

44

46

42

Net income (loss) available (attributable) to common stockholders

$                    (1,402)

$                         610

$                       (192)

$                         908

$                         764

Net income (loss)

$                    (1,357)

$                         654

$                       (148)

$                         954

$                         806

Unrealized (loss) gain on investment securities measured at fair value through other comprehensive income (loss), net

(140)

(7)

(8)

66

61

Comprehensive income (loss)

(1,497)

647

(156)

1,020

867

Dividend on preferred stock

45

44

44

46

42

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,200.5

1,162.0

1122.6

1094.6

1056.6

Net income (loss) per common share - basic

$                      (1.17)

$                        0.53

$                      (0.17)

$                        0.83

$                        0.73

Net income (loss) per common share - diluted

$                      (1.17)

$                        0.52

$                      (0.17)

$                        0.83

$                        0.72

Comprehensive income (loss) per common share - basic

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Comprehensive income (loss) per common share - diluted

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Dividends declared per common share

$                        0.36

$                        0.36

$                        0.36

$                        0.36

$                        0.36

AGNC INVESTMENT CORP.

RECONCILIATION OF GAAP COMPREHENSIVE INCOME (LOSS) TO NET SPREAD AND DOLLAR ROLL INCOME (NON-GAAP MEASURE) 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Adjustments to exclude realized and unrealized (gains) losses reported through net income:

Realized (gain) loss on sale of investment securities, net

17

16

(74)

26

81

Unrealized (gain) loss on investment securities measured at fair value through net income, net

5,015

90

889

(475)

(805)

(Gain) loss on derivative instruments and other securities, net

(3,301)

(485)

(382)

(340)

36

Adjustment to exclude unrealized (gain) loss reported through other comprehensive income:

Unrealized (gain) loss on available-for-sale securities measured at fair value through other comprehensive income, net

140

7

8

(66)

(61)

Other adjustments:

Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income 4,5

28

44

51

27

23

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Other interest income (expense), net 4,7

—

3

6

9

7

Net spread and dollar roll income available to common stockholders

$                         444

$                         462

$                         475

$                         379

$                         365

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,205.1

1,162.0

1,127.3

1,094.6

1,056.6

Net spread and dollar roll income per common share - basic

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

Net spread and dollar roll income per common share - diluted

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

AGNC INVESTMENT CORP.

NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Adjusted net interest and dollar roll income:

Economic interest income:

Investment securities - GAAP interest income 8

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income - implied interest income 4,9

91

155

140

169

135

Economic interest income

1,221

1,174

1,185

1,120

1,052

Economic interest expense:

Repurchase agreements and other debt - GAAP interest expense

(794)

(709)

(731)

(738)

(755)

TBA dollar roll income - implied interest expense 4,10

(63)

(111)

(89)

(142)

(112)

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Economic interest expense

(704)

(641)

(638)

(663)

(622)

Adjusted net interest and dollar roll income

$                         517

$                         533

$                         547

$                         457

$                         430

Net interest spread:

Average asset yield:

Investment securities - average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast

(0.29) %

0.02 %

(0.02) %

0.03 %

0.08 %

Investment securities average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

TBA securities - average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Average asset yield 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Average total cost of funds:

Repurchase agreements and other debt - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Average cost of funds, before interest rate swap periodic income, net 11

3.76 %

3.70 %

3.75 %

4.11 %

4.42 %

Interest rate swap periodic income, net 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds 13

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Average net interest spread

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

AGNC INVESTMENT CORP.

KEY STATISTICS*

(in millions, except per share data)

(unaudited)

Three Months Ended

Key Balance Sheet Statistics:

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Investment securities: 8

Fixed-rate Agency MBS, at fair value - as of period end

$                    86,874

$                    82,334

$                    80,466

$                    77,483

$                    73,283

Other Agency MBS, at fair value - as of period end

$                      4,520

$                      4,450

$                      3,981

$                      3,605

$                      3,003

Credit risk transfer securities, at fair value - as of period end

$                         515

$                         573

$                         593

$                         606

$                         609

Non-Agency MBS, at fair value - as of period end 14

$                           23

$                           24

$                           24

$                           25

$                           28

Total investment securities, at fair value - as of period end

$                    91,932

$                    87,381

$                    85,064

$                    81,719

$                    76,923

Total investment securities, at cost - as of period end

$                    98,178

$                    88,471

$                    86,058

$                    81,817

$                    77,563

Total investment securities, at par - as of period end

$                    97,917

$                    87,896

$                    84,847

$                    80,830

$                    76,625

Average investment securities, at cost

$                    91,905

$                    83,366

$                    84,814

$                    77,562

$                    74,783

Average investment securities, at par

$                    91,467

$                    82,557

$                    83,659

$                    76,647

$                    73,836

TBA securities: 15

Net TBA portfolio - as of period end, at fair value

$                      2,368

$                      9,728

$                      9,548

$                    12,988

$                    13,841

Net TBA portfolio - as of period end, at cost

$                      2,438

$                      9,676

$                      9,742

$                    12,917

$                    13,805

Net TBA portfolio - as of period end, carrying value

$                         (70)

$                           52

$                       (194)

$                           71

$                           36

Average net TBA portfolio, at cost

$                      6,809

$                    12,729

$                    10,343

$                    13,764

$                    10,163

Average repurchase agreements and other debt 16

$                    82,362

$                    75,070

$                    77,120

$                    69,943

$                    66,654

Average stockholders' equity 17

$                    12,206

$                    12,447

$                    12,405

$                    11,828

$                    10,732

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

Tangible net book value "at risk" leverage - average 18

7.6 :1

7.4 :1

7.4 :1

7.4 :1

7.5 :1

Tangible net book value "at risk" leverage - as of period end 19

7.9 :1

7.4 :1

7.4 :1

7.2 :1

7.6 :1

Key Performance Statistics:

Investment securities: 8

Average coupon

5.08 %

5.14 %

5.27 %

5.19 %

5.20 %

Average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

Average coupon - as of period end

5.04 %

5.05 %

5.25 %

5.19 %

5.17 %

Average asset yield - as of period end

4.99 %

4.91 %

4.93 %

4.93 %

4.94 %

Average actual CPR for securities held during the period

8.2 %

13.0 %

13.2 %

9.7 %

8.3 %

Average forecasted CPR - as of period end

6.7 %

8.6 %

10.3 %

9.6 %

8.6 %

Total premium amortization benefit (cost) 24

$                           34

$                         (47)

$                         (52)

$                         (51)

$                         (57)

TBA securities:

Average coupon - as of period end 20

5.23 %

4.89 %

4.11 %

4.98 %

5.11 %

Average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Combined investment and TBA securities - average asset yield, excluding "catch-up" premium amortization 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Cost of funds: 13

Repurchase agreements - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Interest rate swaps - average periodic income 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Repurchase agreements - average funding cost as of period end

3.95 %

3.75 %

3.77 %

3.98 %

4.38 %

Interest rate swaps - average net pay/(receive) rate as of period end 21

(0.94) %

(0.92) %

(1.01) %

(1.29) %

(1.76) %

Net interest spread:

Combined investment and TBA securities average net interest spread, excluding "catch-up" premium amortization

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

Expenses % of average stockholders' equity - annualized

0.92 %

0.96 %

1.10 %

1.39 %

1.12 %

Economic return (loss) on tangible common equity - unannualized 22

(12.7) %

6.7 %

(1.6) %

11.6 %

10.6 %

Key Interest Rate Hedge Statistics

Interest rate swaps:

Average interest rate swaps, notional amount (excluding forward starting swaps), net

$                    73,619

$                    75,216

$                    71,607

$                    59,863

$                    45,656

Average pay-fixed rate

2.89 %

2.71 %

2.65 %

2.56 %

2.25 %

Average receive-floating rate

3.71 %

3.65 %

3.67 %

3.98 %

4.35 %

U.S. Treasury securities:

Average short U.S. Treasury securities, at cost

$                    19,639

$                    16,939

$                    16,772

$                    18,414

$                    21,466

Average short U.S. Treasury securities yield

4.29 %

4.23 %

4.25 %

4.18 %

4.21 %

Average long U.S. Treasury securities, at cost

$                    12,882

$                    12,370

$                    12,033

$                    12,964

$                      4,749

Average long U.S. Treasury securities yield

3.71 %

3.70 %

3.71 %

3.74 %

4.01 %

U.S. Treasury futures:

Average short U.S. Treasury futures, at cost

$                      6,142

$                      4,006

$                      3,210

$                      1,901

$                      1,834

Average short U.S. Treasury futures implied yield 23

4.91 %

4.73 %

4.64 %

4.71 %

4.60 %

Average long U.S. Treasury futures, at cost

$                      8,862

$                      9,917

$                    11,147

$                         708

$                           —

Average long U.S. Treasury futures implied yield 23

4.32 %

3.89 %

3.71 %

3.92 %

— %

Average reverse repurchase agreement rate

3.67 %

3.63 %

3.68 %

4.00 %

4.34 %

*Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise noted.

Numbers in financial tables may not total due to rounding.

Tangible net book value per common share excludes preferred stock liquidation preference and goodwill.
Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures.
"Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations. Amount is net of "catch-up" discount accretion benefit/cost. 
Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations.
Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments.
Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits.
Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense).
Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations.
The average implied asset yield and associated gross income for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period.
The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market-based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for TBA transactions represents the Company's long TBA position only, weighted based on the Company's daily average long TBA position outstanding for the period.
Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost.
Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)).
Cost of funds excludes U.S. Treasury, option-based, and other supplemental hedges used to hedge a portion of the Company's interest rate risk and U.S. Treasury Repo.
Non-Agency MBS, at fair value, excludes $72 million, $70 million, $69 million, $70 million and $69 million of other mortgage credit investments held as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively.
Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities.
Average repurchase agreements and other debt excludes U.S. Treasury Repo.
Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter.
Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo.
Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity and unsettled equity issuances, adjusted to exclude goodwill. Unsettled equity issuances totaled $110 million, $0 million, $0 million, $0 million and $0 million as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively. Leverage excludes U.S. Treasury Repo. 
Average TBA coupon is for the long TBA position only.
Includes forward starting swaps not yet in effect as of reported period-end.
Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share.
The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model.
Total premium amortization (cost) benefit is net of discount accretion benefit (cost).

STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on October 20, 2026 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.

A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q3 2026 Stockholder Presentation link to download the presentation in advance of the stockholder call.

An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on October 20, 2026. In addition, there will be a phone recording available one hour after the call on October 20, 2026 through November 3, 2026. Those who are interested in hearing the recording of the presentation, can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 5388054.

For further information, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. AGNC is a member of many broad market indices, including the S&P MidCap 400, the S&P Composite 1500, the Russell 1000, the Russell 3000, and the Nasdaq Composite.

We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in Agency MBS and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread."

Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/ cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/ expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/ expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).

By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.

Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/ loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.

However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies.

A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release.

CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9303

SOURCE AGNC Investment Corp.

, /PRNewswire/ -- On October 19, 2026, the Board of Directors of West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, declared a fourth-quarter dividend of $0.26 per share on the Company's common stock, an 18% increase over the $0.22 per share paid in the prior quarter. This is the thirty-fourth consecutive annual increase in the Company's dividend. The dividend is payable on November 18, 2026, to shareholders of record on November 11, 2026.

About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life saving and life enhancing medicines for patients. With over 10,000 team members across 50 sites including 26 manufacturing facilities worldwide, West helps support our customers by delivering over 41 billion components and devices each year.

Headquartered in Exton, Pennsylvania, West in its fiscal year 2025 generated $3.07 billion in net sales. West is traded on the New York Stock Exchange (NYSE: WST) and is included on the Standard & Poor's 500 index. For more information, visit www.westpharma.com. 

All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted. 

Media Contact:
Michele Polinsky
Vice President, Global Communications
+1-610-594-3054
[email protected]

SOURCE West Pharmaceutical Services, Inc.

Jefferies Financial Group Inc. (JEF) Analyst/Investor Day October 19, 2026 9:00 AM EDT

Company Participants

Richard Handler - CEO & Director
Brian Friedman - President & Director
Matthew Larson - Executive VP & CFO
Andrea Lee
Raphael Bejarano
John Miller - Global Head of Investment Banking
Peter Forlenza - Global Head of Equities
Frederic Jallot
Nicholas Daraviras - Managing Director

Conference Call Participants

Brennan Hawken - BMO Capital Markets Equity Research
Madeleine Hines
Christoph Kotowski - Oppenheimer & Co. Inc., Research Division
Steve Fullerton
James Yaro - Goldman Sachs Group, Inc., Research Division
Connell Schmitz - Morgan Stanley, Research Division
Kurt Feuerman - AllianceBernstein L.P.

Presentation

Richard Handler
CEO & Director

Okay. Good morning, everybody. Welcome to our Investor Day, Jefferies. My name is Rich Handler, the CEO. I'm going to give you a very brief overview of our company today and how we see the future, followed up by Brian, who's going to put a little more detail on it, but the lion's share of the specifics will be driven by our leadership team, which we're very proud of, and then we'll all be available for a question-and-answer afterwards.

The thing I'm hoping -- the 2 things I'm hoping that people will take away from the meeting today is something that our whole leadership team is very well aware of. First, the strength and scale and scope and capabilities of Jefferies today is something we think is incredibly unique and perhaps not fully understood. We hope to flesh that out a little bit more. And more importantly, the opportunity in the future going forward allows us with the scale and the scope, we believe, to continue to grow and invest, but also bring even more profits to the bottom line. And I think we'll talk a little bit today about how we're going to do that.

Having been at Jefferies since 1990, it's

-

Return on Equity of 18.4% and Operating Return on Equity of 18.8%;
Pre-Tax Underwriting Income for the Insurance Segment Grew 10.6%;
Quarterly Net Investment Income Grew to $383.5 Million Driven by Core Portfolio Increase of 12.0%

GREENWICH, Conn.--(BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) today reported its third quarter 2026 results.

Summary Financial Data

(Amounts in thousands, except per share data)

  Third Quarter

Nine Months

2026

2025

2026

2025

Gross premiums written

$ 3,951,788

$ 3,836,256

$ 11,881,554

$ 11,497,964

Net premiums written

3,267,602

3,226,930

9,872,182

9,711,672

Net income to common stockholders

446,005

511,032

1,413,483

1,329,892

Net income per diluted share

1.14

1.28

3.60

3.32

Operating income (1)

456,541

440,198

1,467,749

1,280,364

Operating income per diluted share (1)

1.17

1.10

3.73

3.20

Return on equity (2)

18.4%

24.3%

19.4%

21.1%

Operating return on equity (1) (2)

18.8%

21.0%

20.2%

20.3%

Third quarter highlights included:

Return on equity of 18.4% and operating return on equity of 18.8%. Pre-tax underwriting income for the Insurance segment grew 10.6% to $237.7 million. Net investment income grew to $383.5 million driven by core portfolio increase of 12.0%. Gross and net premiums written for the Insurance segment grew 4.9% and 3.2%, respectively. Operating income of $456.5 million grew 6.4% on a per share basis to $1.17. The current accident year combined ratio before catastrophe losses of 2.7 loss ratio points was 88.1% and reported combined ratio was 90.8%. Average rate increases excluding workers' compensation were approximately 4.0%. Commenting on the Company's performance, W. Robert Berkley, Jr., chairman, chief executive officer, and president, said:

The Company delivered another excellent quarter, generating an annualized 18.8% operating return on beginning-of-year stockholders’ equity. These results demonstrate the continuing strength in how we manage our specialty insurance underwriting, as well as our investment portfolio.

Our underwriting results have consistently been outstanding due to our unwavering commitment to rate adequacy and attention to terms and conditions. As the cycles for various product lines have decoupled, the breadth of our offering through our 60 specialty businesses allows for greater stability. Our long-term view and disciplined approach produced a strong 88.1% accident year combined ratio, excluding catastrophe losses.

Our investment portfolio continues to be a great contributor to our economic model, with the domestic fixed-maturity portfolio serving as the primary driver. Income from fixed-maturity securities increased 10.3% over the corresponding period a year ago. The credit quality of our portfolio remains excellent, with an average strong AA- rating, and reinvestment yields continue to meaningfully exceed our portfolio’s book yield.

Our disciplined approach to capital management remains unchanged. We returned a total of $728.6 million to shareholders year-to-date, which includes $435.1 million of share repurchases, while preserving substantial flexibility to support future opportunities.

The strong prevailing interest rate tailwind has set investment income on a path to greater earnings contributions, and greater utilization of technology is enabling us to further leverage our underwriting and claims expertise. We believe we remain well-positioned to continue delivering attractive long-term risk-adjusted returns and creating long-term value for our shareholders.

Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on October 19, 2026, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at https://ir.berkley.com/events-and-presentations/default.aspx. Please log on early to register. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at https://ir.berkley.com/investor-relations/financial-information/quarterly-results/default.aspx.

About W. R. Berkley Corporation

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.

Forward Looking Information

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2026 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, foreign government bonds, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy-related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; the increasing use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks; natural and man-made catastrophic losses, including as a result of terrorist activities or the ongoing conflict with Iran; the risk of future pandemics, as well as the continuing effects of the COVID-19 pandemic; the impact of climate-related risks, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, the risk of recession, changing interest rates, the impact of tariffs and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; cybersecurity breaches of our information technology systems and the information technology systems of our vendors and other third parties, or related processes and systems; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2026 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Consolidated Financial Summary

(Amounts in thousands, except per share data)

  Third Quarter

Nine Months

2026

2025

2026

2025

Revenues:

Net premiums written

$

3,267,602

$

3,226,930

$

9,872,182

$

9,711,672

Change in net unearned premiums

(53,998

)

(70,548

)

(356,017

)

(444,724

)

Net premiums earned

3,213,604

3,156,382

9,516,165

9,266,948

Net investment income

383,537

351,238

1,206,585

1,090,833

Net investment (losses) gains:

Net realized and unrealized (losses) gains on investments

(17,541

)

78,800

(88,301

)

125,044

Change in allowance for credit losses on investments

(764

)

160

(969

)

1,244

Net investment (losses) gains

(18,305

)

78,960

(89,270

)

126,288

Revenues from non-insurance businesses

130,824

150,335

421,802

408,083

Insurance service fees

28,615

30,924

87,464

92,610

Other income

536

397

2,518

1,681

Total Revenues

3,738,811

3,768,236

11,145,264

10,986,443

Expenses:

Loss and loss expenses

1,998,469

1,968,857

5,895,026

5,825,073

Other operating costs and expenses

1,009,559

975,333

3,006,138

2,964,550

Expenses from non-insurance businesses

124,845

144,176

383,428

392,976

Interest expense

31,614

31,760

95,052

95,265

Total expenses

3,164,487

3,120,126

9,379,644

9,277,864

Income before income tax

574,324

648,110

1,765,620

1,708,579

Income tax expense

(125,999

)

(136,141

)

(349,414

)

(378,551

)

Net Income before noncontrolling interests

448,325

511,969

1,416,206

1,330,028

Noncontrolling interest

(2,320

)

(937

)

(2,723

)

(136

)

Net income to common stockholders

$

446,005

$

511,032

$

1,413,483

$

1,329,892

Net income per share:

Basic

$

1.15

$

1.29

$

3.62

$

3.35

Diluted

$

1.14

$

1.28

$

3.60

$

3.32

Average shares outstanding (1):

Basic

388,750

397,220

390,044

397,056

Diluted

391,337

400,204

392,992

400,306

Business Segment Operating Results

(Amounts in thousands, except ratios) (1)

  Third Quarter

Nine Months

2026

2025

2026

2025

Insurance:

Gross premiums written

$

3,560,309

$

3,393,023

$

10,724,644

$

10,216,863

Net premiums written

2,899,016

2,809,743

8,802,716

8,517,901

Net premiums earned

2,861,882

2,773,009

8,453,404

8,144,300

Pre-tax income

523,358

474,538

1,626,594

1,496,715

Loss ratio

63.3

%

63.9

%

63.4

%

63.9

%

Expense ratio

28.4

%

28.4

%

28.4

%

28.1

%

GAAP Combined ratio

91.7

%

92.3

%

91.8

%

92.0

%

Reinsurance & Monoline Excess:

Gross premiums written

$

391,479

$

443,233

$

1,156,910

$

1,281,101

Net premiums written

368,586

417,187

1,069,466

1,193,771

Net premiums earned

351,722

383,373

1,062,761

1,122,648

Pre-tax income

133,265

144,008

421,476

391,687

Loss ratio

53.2

%

51.3

%

50.2

%

55.5

%

Expense ratio

30.2

%

29.8

%

30.2

%

29.1

%

GAAP Combined ratio

83.4

%

81.1

%

80.4

%

84.6

%

Corporate and Eliminations:

Net investment (losses) gains

$

(18,305

)

$

78,960

$

(89,270

)

$

126,288

Interest expense

(31,614

)

(31,760

)

(95,052

)

(95,265

)

Other expenses

(32,380

)

(17,636

)

(98,128

)

(210,846

)

Pre-tax (loss) Income

(82,299

)

29,564

(282,450

)

(179,823

)

Consolidated:

Gross premiums written

$

3,951,788

$

3,836,256

$

11,881,554

$

11,497,964

Net premiums written

3,267,602

3,226,930

9,872,182

9,711,672

Net premiums earned

3,213,604

3,156,382

9,516,165

9,266,948

Pre-tax income

574,324

648,110

1,765,620

1,708,579

Loss ratio

62.2

%

62.4

%

61.9

%

62.9

%

Expense ratio

28.6

%

28.5

%

28.6

%

28.2

%

GAAP Combined ratio

90.8

%

90.9

%

90.5

%

91.1

%

Supplemental Information

(Amounts in thousands)

  Third Quarter

Nine Months

2026

2025

2026

2025

Net premiums written:

Other liability

$

1,133,295

$

1,092,550

$

3,500,195

$

3,419,802

Short-tail lines (1)

672,040

663,017

2,037,403

1,969,507

Auto

438,702

416,956

1,318,370

1,254,788

Workers' compensation

332,615

330,181

1,008,499

1,011,679

Professional liability

322,364

307,039

938,249

862,125

Total Insurance

2,899,016

2,809,743

8,802,716

8,517,901

Casualty (2)

144,164

192,694

465,098

568,412

Property (2)

116,983

119,671

336,880

367,755

Monoline excess

107,439

104,822

267,488

257,604

Total Reinsurance & Monoline Excess

368,586

417,187

1,069,466

1,193,771

Total

$

3,267,602

$

3,226,930

$

9,872,182

$

9,711,672

Current accident year losses from catastrophes:

Insurance

$

82,911

$

69,826

$

218,171

$

218,073

Reinsurance & Monoline Excess

3,021

8,691

5,807

70,785

Total

$

85,932

$

78,517

$

223,978

$

288,858

Net Investment income:

Core portfolio (3)

$

369,122

$

329,508

$

1,094,519

$

974,811

Investment funds

2,123

5,421

70,435

59,713

Arbitrage trading account

12,292

16,309

41,631

56,309

Total

$

383,537

$

351,238

$

1,206,585

$

1,090,833

Net realized and unrealized (losses) gains on investments:

Net realized gains (losses) on investments

$

27,831

$

69,210

$

(20,425

)

$

31,877

Change in unrealized (losses) gains on equity securities

(45,372

)

9,590

(67,876

)

93,167

Total

$

(17,541

)

$

78,800

$

(88,301

)

$

125,044

Other operating costs and expenses:

Policy acquisition and insurance operating expenses

$

919,125

$

900,312

$

2,717,653

$

2,620,657

Insurance service expenses

24,570

22,711

73,204

70,245

Net foreign currency (gains) losses

(5,122

)

(12,009

)

(20,159

)

62,765

Other costs and expenses

70,986

64,319

235,440

210,883

Total

$

1,009,559

$

975,333

$

3,006,138

$

2,964,550

Cash flow from operations

$

731,333

$

1,139,860

$

2,199,237

$

2,587,484

Reconciliation of net income to operating income:

Net income

$

446,005

$

511,032

$

1,413,483

$

1,329,892

Pre-tax investment losses (gains), net of related expenses

18,551

(78,305

)

89,270

(125,985

)

Pre-tax net foreign currency (gains) losses

(5,122

)

(12,009

)

(20,159

)

62,765

Income tax (benefit) expense

(2,893

)

19,480

(14,845

)

13,692

Operating income after-tax (4)

$

456,541

$

440,198

$

1,467,749

$

1,280,364

(1)

Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.

(2)

Includes reinsurance casualty and property and certain program management business.

(3)

Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.

(4)

Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and after-tax net foreign currency gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company's underlying operations.

Selected Balance Sheet Information

(Amounts in thousands, except per share data)

  September 30, 2026

December 31,

2025

Net invested assets (1)

$

33,952,861

$

33,173,381

Total assets

45,675,961

43,926,843

Reserves for losses and loss expenses

23,610,579

22,207,773

Senior notes and other debt

1,827,874

1,829,198

Subordinated debentures

1,011,066

1,010,527

Common stockholders' equity (2)

9,610,213

9,700,818

Common stock outstanding (3)

371,448

377,156

Book value per share (4)

25.87

25.72

Tangible book value per share (4)

25.27

25.11

(1)

Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.

(2)

As of September 30, 2026, reflected in common stockholders' equity are after-tax unrealized investment losses of $928 million and unrealized currency translation losses of $320 million. As of December 31, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $125 million and unrealized currency translation losses of $326 million.

(3)

During the nine months ended September 30, 2026, the Company repurchased 6,465,878 shares of its common stock for $435.1 million. During the three months ended September 30, 2026, the Company repurchased 309,508 shares of its common stock for $21.1 million. The number of shares of common stock outstanding excludes shares held in a grantor trust (17,378,810 shares).

(4)

Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. Adjusted book value per share and adjusted tangible book value per share, including shares held in a grantor trust are $24.72 and $24.14, respectively.

Investment Portfolio

September 30, 2026

(Amounts in thousands, except percentages)

  Carrying Value

Percent of Total

Fixed maturity securities:

United States government and government agencies

$

4,589,338

13.5

%

State and municipal:

Special revenue

935,495

2.8

%

State general obligation

203,787

0.6

%

Local general obligation

166,550

0.5

%

Corporate backed

126,644

0.4

%

Pre-refunded

63,969

0.2

%

Total state and municipal

1,496,445

4.5

%

Mortgage-backed securities:

Agency

3,954,880

11.6

%

Residential - Prime

179,792

0.5

%

Commercial

170,177

0.5

%

Residential - Alt A

1,090

0.0

%

Total mortgage-backed securities

4,305,939

12.6

%

Asset-backed securities

4,188,774

12.3

%

Corporate:

Industrial

3,876,539

11.4

%

Financial

3,606,285

10.6

%

Utilities

1,731,263

5.1

%

Other

186,842

0.6

%

Total corporate

9,400,929

27.7

%

Foreign government

2,021,727

6.0

%

Total fixed maturity securities (1)

26,003,152

76.6

%

Equity securities available for sale:

Common stocks

884,723

2.6

%

Preferred stocks

578,372

1.7

%

Total equity securities available for sale

1,463,095

4.3

%

Cash and cash equivalents (2)

2,038,618

6.0

%

Investment funds

1,450,995

4.3

%

Arbitrage trading account

1,407,586

4.1

%

Real estate

1,318,367

3.9

%

Loans receivable

271,048

0.8

%

Net invested assets

$

33,952,861

100.0

%

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