China's Long March rocket blasted off in a historic launch on Friday. VCG/VCG via Getty Images SpaceX is flying high off the back of a record-breaking IPO, but China looks determined to bring Elon Musk back down to Earth.
China successfully landed the booster stage of its Long March-10B reusable rocket on Friday, the first time it has launched and partially returned a reusable orbital rocket safely to Earth.
It means that China's Aerospace Science and Technology Corp, which built the rocket, joins Musk's SpaceX and Jeff Bezos' Blue Origin as the only organizations to have successfully landed a rocket booster.
长征十号乙运载火箭成功实现一子级可控回收，是全球首次运载火箭网系回收BREAKING｜WORLD‑FIRST ACHIEVEMENT! #China's Long March 10B carrier #rocket lifted off from the Hainan commercial space launch site at 12:15 pm on Jul. 10. Approximately six minutes after the separation of the… pic.twitter.com/J3mZGuD9Lk
— Beijing Evening News (@BeijingEvening) July 10, 2026 Local media reported that the Long March rocket's first stage touched down on a barge around six minutes after launch and was captured by a large net — reportedly the world's first ever "net-based recovery" of a rocket.
Landing a first-stage booster, rather than letting it burn up on reentry, is a key milestone in building reusable rockets, which significantly lowers launch costs. SpaceX landed its first booster in 2015 and has since launched and successfully recovered its Falcon 9 rocket hundreds of times.
In 2024, SpaceX wowed the world by catching the nearly 400-foot-tall superheavy booster — which is used to propel its next-generation Starship rocket into orbit — with the chopstick-like arms of its "Mechazilla" launch tower.
Blue Origin scored its first booster landing last November, with the first stage of its towering New Glenn rocket successfully landing on a platform in the Atlantic Ocean.
Bezos' rocket company has suffered setbacks since then, with New Glenn exploding on the launchpad in May.
Landing a booster is a significant step toward China's ambition of catching up with SpaceX, which launches far more material into orbit than any other country or company.
China's reusable Long March rocket can't carry as much into orbit as SpaceX's Falcon 9. Ding Yi/VCG via Getty Images The Asian superpower is also attempting to build a rival to SpaceX's Starlink satellite internet service, with state-backed company SpaceSail launching around 200 satellites into orbit since 2024.
That's well behind Starlink, which has an estimated 10,000 satellites in low-earth orbit. China's Long March rocket also lags behind SpaceX's Falcon 9, with a max payload capacity of 16 tons compared to the Falcon's 25 tons and Starship's planned 100+ tons.
In a post on X in October, however, Musk said that China's reusable rockets were catching up with SpaceX's workhorse rocket — even if they were still some way behind the cutting edge.
"They have added aspects of Starship, such as use of stainless steel and methalox, to a Falcon 9 architecture, which would enable it to beat Falcon 9," he wrote.
"But Starship [is] in another league," Musk added.
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From Post-Jobs Uncertainty to a Trillion-Dollar Machine When Tim Cook took the corner office at Apple (NASDAQ:AAPL | AAPL Price Prediction), skeptics wondered whether the company could keep innovating without Steve Jobs. Cook answered by scaling the iPhone into a global juggernaut, building Services into a high-margin recurring engine, and adding franchises like Apple Watch, AirPods, and Apple Vision Pro.
The results speak loudly. Cook reinstated the dividend, ran the largest buyback program in corporate history, and shepherded the company past the $1 trillion, $2 trillion, $3 trillion, and now $4.6 trillion market cap milestones. The most recent quarter delivered $111.18 billion in revenue and a Services record of $30.98 billion, with an installed base above 2.5 billion active devices.
What a $10,000 Cook-Era Stake Looks Like Today Using split-adjusted prices, here is how the math shakes out across standard horizons versus the S&P 500.
Since Cook Became CEO
Initial Investment: $10,000 (roughly 868 shares at $11.5197) AAPL Total Return: 2,708.16% Current value: $280,816 S&P 500 (same period): 536.61% Apple S&P 500 1-Year Return 50.36% 50.36% 5-Year Return 123.54% 72.60% 10-Year Return 1,332.39% 252.25% Apple beat the benchmark at every horizon. Holders endured real pain along the way, including the 2022 correction that cut the stock nearly in half, but buybacks and Services quietly compounded through every rough patch.
Grading Cook and Succession Whispers The Cook-era grade: A. He inherited a hit product and built the most profitable platform in tech history, with return on equity now at 115.1%.
Succession chatter has grown louder, with hardware chief John Ternus frequently floated as a potential successor. Cook has given no signal of stepping back, though timing risk deserves a small discount on a stock trading at a 38x trailing P/E.
The Case for Buying Now The bull case rests on Apple Intelligence eventually catching up with its artificial intelligence peers, the new roughly $30 billion Broadcom (NASDAQ:AVGO) U.S.-made chip agreement reducing supply risk, and Services continuing to grow at double-digit percentages. The bear case centers on the EU Digital Markets Act court loss and App Store rulings gutting the Services take rate, or the AI gap widening further. On balance, the setup leans cautiously constructive. It is a great business, but priced like one.
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EU regulators have accused Meta, the company behind Facebook and Instagram, of failing to tackle the risks of its “addictive design” on the physical and mental health of users.
In an official charge sheet against Meta released on Friday, the European Commission said features such as video autoplay and infinite scroll, which provides an endless stream of content, “shift the brain into autopilot mode, contributing to unhealthy habits and compulsive use”.
In a significant finding, as the EU considers a social media ban for minors, the commission said Meta had disregarded available information about the time children spend on Instagram and Facebook at night, and how features, such as reels and stories, could lead to “excessive or even compulsive use of its services”.
The commission said the addictive design of Facebook and Instagram was a breach of the EU’s Digital Services Act, which aims to protect users from a wide range of internet harms, including shopping scams, disinformation and illegal content.
A Meta spokesperson said: “We disagree with these preliminary findings, which don’t accurately take into account the significant steps we’ve taken to protect teens. Since this investigation began, we rolled out ‘Teen Accounts’ that automatically protect teens and put parents in control – allowing them to block access to Instagram at night and cap daily screen time at just 15 minutes.”
The findings are part of a wide-ranging investigation into Meta launched in May 2024. EU officials continue to assess other charges, notably “rabbit hole” effects, where an algorithm feeds young people negative content, such as on unrealistic body images. In another strand of the investigation, the commission said Meta had broken EU law – and its own terms and conditions – by failing to prevent children under 13 from using Facebook and Instagram.
EU officials want Meta to change the design of Instagram and Facebook by, for instance, scrapping autoplay and infinite scroll as default settings, implementing screen breaks and changing its algorithm, so users are offered less personal content.
Meta has the right to mount a defence and may examine the commission’s investigation files. If the ruling is confirmed, the company could be fined up to 6% of its total annual turnover.
The charges come days before a long-awaited report from an expert panel convened by the European Commission president, Ursula von der Leyen, examining social media bans for children. The special panel for child safety online is due to present recommendations on Monday.
Von der Leyen has already revealed her thinking, telling an AI safety conference in May: “We must consider a social media delay.” The commission president, a mother of seven who trained as a doctor, said: “The question is not whether young people should have access to social media, the question is whether social media should have access to young people.”
At least 10 EU member states are already drawing up plans for a social media ban, including France, Italy and Spain, putting pressure on the commission to come up with an EU-wide solution or risk a hotchpotch of different rules.
Announcing the latest charges against Meta, the commission’s lead official on tech policy, Henna Virkkunen, said: “The Digital Services Act provides a clear framework to hold platforms accountable for the addictive design and effects of their services. We are fully committed to enforcing our legislation in Europe.”
The EU charged Meta Platforms' Instagram and Facebook on Friday with breaching its tech rules, with regulators targeting features they say are designed to keep users hooked and demanding changes to autoplay and infinite scroll or risk fines.
Instagram and Facebook's "addictive" designs have put Meta in breach of the European Union's digital laws, the EU concluded Friday in a preliminary report.
The tech giant violated the EU's Digital Services Act by failing to adequately consider the risks associated with design features that affected the physical well-being of its users, including minors and vulnerable adults, the European Commission said.
These features include infinite scroll, autoplay, push notifications, and highly personalized recommendation systems.
Meta is facing fines up to 6% of its total annual turnover if the Commission's findings are confirmed.
"We disagree with these preliminary findings, which don't accurately take into account the significant steps we've taken to protect teens," a spokesperson from Meta said.
Since the investigation began, Meta has rolled out Teen Accounts that "automatically protect teens and put parents in control," by allowing them to block access at night and cap daily screen time at 15 minutes, they said.
"We share the European Commission's commitment to providing teens with safe, positive online experiences and will continue to engage constructively with them," they added.
This is a breaking news story, please check back for more updates.
OpenAI and Google have confirmed that they supplied advanced artificial intelligence services to Singapore-based subsidiaries of Alibaba, Baidu, and Tencent, companies that the US government has accused of having links to China's military.
The disclosures have renewed debate over whether Washington should tighten export controls on advanced AI models in addition to restrictions on semiconductor exports.
The companies told the Financial Times that the services were provided legally through overseas subsidiaries.
However, the arrangements have highlighted what critics describe as a gap in US efforts to limit China's access to cutting-edge AI technologies.
OpenAI said it suspended API access for Alibaba-affiliated users last month following concerns over suspected misuse.
According to the company, the suspension was linked to suspected distillation, a process in which developers use the outputs of advanced AI models to improve competing systems.
An OpenAI spokesperson told the Financial Times that the activity had been reported to the US government.
OpenAI said it does not permit access to its AI models from within China.
However, it confirmed that "some companies" with Chinese ownership or headquarters are allowed to use its tools for operations in countries where the company can enforce safeguards and monitor for distillation risks.
The company added, "We would rather see more of the world using AI shaped by democratic values than AI controlled by autocratic governments".
Although the transactions remain legal, they have prompted renewed calls for Washington to impose tighter controls on advanced AI models, similar to restrictions already placed on the export of high-end AI chips.
The US government has introduced controls covering individual frontier AI models, including Anthropic's Mythos and Fable, as well as OpenAI's GPT-5.6.
However, current regulations do not broadly prohibit Chinese-headquartered companies from accessing advanced AI software, including companies listed on the Pentagon's congressionally mandated 1260H blacklist, which identifies entities alleged to have ties with the People's Liberation Army.
Google said its AI services remain available in Hong Kong and Singapore, subject to the company's usage policies, including restrictions against distillation.
The company said geographic sales restrictions alone are not enough to eliminate distillation risks because sophisticated users can circumvent location-based controls.
Anthropic has taken a more restrictive approach by prohibiting Chinese companies and foreign entities owned by them from using its advanced AI models.
The company acknowledged that enforcing the restrictions has been challenging.
Last week, it said it had closed loopholes that previously allowed some Chinese companies to bypass its safeguards against unauthorised access.
Anthropic has previously accused Chinese AI developers DeepSeek, Moonshot and MiniMax of engaging in distillation.
Last month, the company also told Congress that Alibaba allegedly used 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude, claiming the activity violated its terms of service.
Three days after announcing the largest mass layoff in the video game industry this year, Xbox CEO Asha Sharma got a new title: co-lead of the Federal Reserve’s task force on Productivity and Jobs. Sharma announced 3,200 job cuts across Microsoft’s gaming division on July 6, 2026. The Fed named her to the task force on July 9. She is the only sitting CEO named to any of the Fed’s five new external task forces, and will help shape how the central bank thinks about artificial intelligence and employment for the next decade.
The Appointment Fed Chairman Kevin Warsh, in the job less than two months unveiled five external advisory groups covering Productivity and Jobs, Inflation Frameworks, Communications, Balance Sheet, and Data. Sharma’s group is charged with “assessing the economic impact of new general-purpose technologies, including artificial intelligence, to inform the Federal Reserve’s policy judgments,” with recommendations due by year end.
Her co-members carry weight. Marc Andreessen, co-founder of Andreessen Horowitz, joins after being named to the US Defense Policy Board in late June. Charles I. Jones, a Stanford economist currently on leave at Anthropic, brings frontier-lab exposure. Elsewhere on the rosters sit former Walmart CEO Doug McMillon, former Bank of England Governor Mervyn King, former Fed Governor Jeremy Stein, Harvard’s Greg Mankiw, and Nobel laureate Thomas Sargent. Warsh framed the effort plainly: “The U.S. economy has changed significantly over the last generation, and never more so than right now.”
The Layoffs She’s Bringing to the Table Sharma, appointed Xbox CEO earlier in 2026 after running Microsoft’s CoreAI product division, was the first Xbox chief to arrive from an AI background rather than gaming. Her July 6 memo cut deep. ZeniMax Online (maker of The Elder Scrolls Online) lost hundreds of jobs; Id Software (Doom) shed roughly 100. Double Fine, Ninja Theory, Undead Labs, and Compulsion Games are being parted ways with, some returning to independent status. The cuts sit on top of roughly 8,000 company-wide layoffs Microsoft announced in May 2026, and they are part of Microsoft’s restructuring of gaming around AI-driven game development.
The optics are unavoidable. The executive advising the Fed on how AI reshapes employment at Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is executing that reshaping in real time. Her expertise is genuine. The timing has drawn attention.
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The Monetary Policy Payoff Look past the gaming-industry story and this signals interest rates. The Warsh Fed is elevating AI’s impact on jobs and productivity from background variable to central policy input. The stakes cut both ways: if AI proves deflationary by replacing labor and compressing wage growth, the Fed can cut sooner and hold rates lower; if AI proves inflationary through energy demand, reshoring, and a capex boom, the opposite.
The market currently sides with the inflationary case. Polymarket traders assign a 78.45% probability of zero Fed rate cuts in 2026, with the fed funds rate holding at 3.75% since December 10, 2025 and core PCE inflation sitting at the 90.9th percentile of its 12-month range. The labor market backdrop remains stable: unemployment at 4.2% in June, initial claims at 215,000, and 7.59M job openings in May.
That backdrop makes the task force’s conclusion consequential. A Fed finding that formally endorses AI as deflationary would be bullish for rate-sensitive sectors and could pull forward the cutting cycle. For Microsoft, Sharma’s employer, that conclusion would validate the Copilot investment thesis at the source. Watch for the year-end report. The Xbox CEO who cut 3,200 jobs this week will help write it.
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NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.
If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
Key Details of the Microsoft ($MSFT) Class Action:
Lead Plaintiff Deadline: August 11, 2026Alleged Misconduct: Securities fraud alleging that Microsoft misled investors regarding its Azure cloud computing platform and AI chatbot CopilotStock Drop: January 28, 2026 – 10% Stock DropCourt: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights
Investors have until August 11, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Microsoft common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned City of St. Clair Shores Police and Fire Retirement System, et al., No. 26-cv-02071.
Why is Microsoft Being Sued for Securities Fraud?
Microsoft is a multinational technology company that develops software, cloud services, and devices. In recent years, Microsoft’s cloud computing platform named Azure has been Microsoft’s main growth driver. A key reason for Azure’s recent growth is Microsoft’s multi-billion-dollar investment into AI, including the development of its own generative AI chatbot named Copilot.
According to the complaint, during the relevant period, Microsoft consistently touted Copilot’s best-in-class capabilities, which purportedly drove widespread and growing user adoption. Copilot’s apparent success allowed Microsoft to report surging Azure-related revenue.
As alleged, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Microsoft’s Azure revenue at risk.
Why did Microsoft’s Stock Drop?
On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates.
This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.
Additionally, on February 3, 2026, The Wall Street Journal reported in an article titled “Microsoft’s Pivotal AI Product Is Running Into Big Problems” that severe challenges and functionality issues had plagued Copilot, causing the application to lose market share. Specifically, The Wall Street Journal reported that “[c]onfusing brand positioning and interoperability problems have frustrated users.”
Click here for more information: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.
What Can You Do?
If you invested in Microsoft, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Item 1 of 2 A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo
[1/2]A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo Purchase Licensing Rights, opens new tab
CompaniesLONDON, July 10 (Reuters) - Britain has designated cloud service providers Microsoft (MSFT.O), opens new tab, Google (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab and Oracle (ORCL.N), opens new tab as critical third-party suppliers to its financial sector, bringing them under direct regulatory oversight.
The move is aimed at strengthening the resilience of financial firms by reducing the risk of widespread disruption from cyber attacks or technology outages.
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"As banks, insurers and financial market infrastructures become increasingly reliant on cloud services, disruption at a major supplier could affect multiple firms at the same time, potentially impacting services customers depend on," the government said in a statement on Friday.
The government designated Microsoft Ireland Operations Ltd, Google Cloud EMEA Ltd, Amazon Web Services EMEA SARL, and Oracle Corporation UK Ltd as critical third parties, effective July 13.
The firms will be supervised jointly by the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. They will be required to undergo resilience testing, conduct regular self-assessments and report major incidents.
Britain's approach contrasts with that of the European Union, which in November designated 19 technology and services firms under a similar framework.
A Google Cloud spokesperson said: "With effective implementation and meaningful industry engagement, this new Critical Third Party framework can enhance the long-term resilience of the UK's financial ecosystem and increase understanding, transparency, and trust between all parties."
Reporting by Phoebe Seers and Muvija M. Editing by William James and Mark Potter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
President Donald Trump is in the news for what may be an unexpected reason. A CNBC analysis of the president's most recent financial disclosures shows that Trump made 327 stock purchases on April 8, 2025.
If that date doesn't ring a bell, here's a refresher -- the very next day, Trump posted on his Truth Social account that it was a "GREAT TIME TO BUY!!!" and then announced a partial rollback in his "Liberation Day" tariffs that caused the market to jump 9.5% in a day.
There's a lot of discussion among experts about the ethics of Trump's trades, and the White House maintains that the president's investment accounts are managed by professionals who are not in regular communication with Trump. I'm not going to try to parse the legalities that are being debated on public airwaves and in Washington. However, I do think it's worthwhile to look at five megacap tech stocks that were central to Trump's April 2025 buying spree -- Apple (AAPL +0.85%), Amazon (AMZN +1.38%), Alphabet (GOOG 0.69%) (GOOGL 0.90%) Microsoft (MSFT +0.19%), and Nvidia (NVDA 0.62%) -- and see how they've performed since that date.
Image source: Getty Images.
What do these stocks have in common? Apple, Amazon, Alphabet, Microsoft, and Nvidia are all part of the "Magnificent Seven" group of stocks that have been primary drivers in the market for the last several years. The five companies have been closely followed as the appetite for artificial intelligence and AI-powered platforms remakes the market.
AAPL data by YCharts
Nvidia, which makes the most popular semiconductor chips used in AI training and inference, has had the most success in the last three years, gaining more than 360% over that period. Nvidia now has a market cap of more than $4.5 trillion, making it the biggest company in the world by market capitalization.
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Amazon, Microsoft, and Alphabet are hyperscalers, meaning they operate large cloud computing operations that offer cloud, networking, and storage services. Cloud operators have become even more necessary in the age of AI because it's extremely expensive for companies to build their own AI-capable networking and storage systems in-house. Amazon has the largest share in the global market, at 28%, while Microsoft is No. 2 at 21%, and Alphabet's Google Cloud is third with 14% share.
Apple is more of an outlier -- it doesn't make chips, and it hasn't shown any interest in being a hyperscaler. Instead, it focuses on incorporating AI technology -- which it calls Apple Intelligence -- directly into its products. It recently announced a revamped version of its Siri personal assistant, Siri AI, which is being rolled out this year. Siri AI will be able to answer questions about content on users' screens, conduct searches, and get real-time information from websites.
How are these stocks performing? While we don't know how much Trump bought in Apple, Amazon, Alphabet, Microsoft, and Nvidia stocks, we do know all the purchases were between $100,000 and $250,000. So let's split the difference for the sake of comparison and say he spent $175,000 on each stock on April 8, 2025, and held his positions through today.
AAPL data by YCharts
Alphabet, which has seen a resurgence over the last year, is the biggest winner, turning a hypothetical $175,000 investment into $438,410. But all five investments come out in the black -- even Microsoft stock, which gained only 8% in the last 15 months.
In all, Trump's hypothetical $875,000 investment would have turned into $1.58 million, a gain of 76% on those five trades.
SummaryGaming and Leisure Properties is upgraded to 'Strong Buy' due to discounted valuation and robust income growth prospects.GLPI trades at 10.5x forward P/FFO with a 7.6% yield, well below its historical average, offering attractive entry for income-focused investors.A $1.8 billion investment pipeline and contractual rent escalators provide clear visibility into AFFO growth through 2027.GLPI's strong balance sheet, prudent underwriting, and rising dividend support the thesis for double-digit annualized total returns.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » z1b/iStock via Getty Images
Most people have heard of the expression that “cash is king.” I would, however, modify that expression to be “cash flow is king.” That’s because having strong cash flow can protect the investor from the hidden dangers of inflation, which is like
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GLPI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryThe Walt Disney Company (DIS) trades at a rare discount, with a 14x earnings multiple and improving growth prospects.DIS earnings are projected to grow 10–15% annually, driven by streaming profitability, parks expansion, and robust buybacks.Management targets at least $8 billion in buybacks this year, equivalent to 5% of market cap, further boosting EPS.Leverage is down to just above 2x EBITDA, and a 1.6% dividend yield enhances DIS's total return outlook.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More » blanscape/iStock Editorial via Getty Images
Article Thesis The Walt Disney Company (DIS) has underperformed for quite some time, as investors were too bullish a couple of years ago, and since Disney's profit growth has been sluggish recently. But the share price
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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Altria Group earns a buy rating for its robust cash flow, strong dividend coverage, and defensive qualities amid declining smoking trends. MO's pricing power and brand loyalty offset shipment declines, with Marlboro maintaining a 39.7% market share and premium dominance. Product diversification into e-vapor and oral nicotine, plus a stake in Anheuser-Busch, supports operational resilience and liquidity.
After a company completes its initial public offering (IPO), Wall Street analysts who work at the banks that underwrote the offering must refrain from issuing equity research about it for a specific period of time. This is known as the quiet period. For Elon Musk's Space Exploration Technologies (SPCX +2.60%), that period just ended.
Unsurprisingly, a flurry of reports from sell-side analysts just dropped. While the consensus across Wall Street is generally bullish for SpaceX, one analyst in particular sees outsized potential for the stock. Brian Gesuale of Raymond James has initiated coverage with an $800 price target. This is the highest forecast among analysts, and points to an upside of about 425% from SpaceX's current trading levels.
The optimism stems from a glowing view that SpaceX will emerge as a provider of the foundational infrastructure layer of the 21st century. Let's consider what that means, as well as how investors should assess Wall Street analysts' research.
Image source: The Motley Fool.
Raymond James believes that SpaceX's total addressable market will approach $30 trillion in the long run. Of note, this is slightly larger than the $28.5 trillion addressable market that SpaceX asserted that it had in its S-1 filing.
The financial services firm's forecast rests on a number of factors. In particular, to fulfill the bullish forecast, the company would need its Starship rocket to achieve commercial maturity, slash the cost of orbital deliveries by more than 99%, and boost payload capacity by an order of magnitude. By doing so, SpaceX would essentially convert what is now a bespoke orbital launch business into a high-cadence transportation network similar to commercial aviation.
Gesuale anchors his thesis in SpaceX's infrastructure flywheel. His model assumes the company will generate revenue of roughly $38.5 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $17.7 billion this year. By 2031, Gesuale sees a path for SpaceX to scale revenue by more than 20x to more than $837 billion, while EBITDA expands to $696 billion. The firm's valuation forecast follows a discounted cash-flow model that uses a 27x exit multiple applied to the 2031 estimated EBITDA figure.
Progress in AI compute, potential in telecom While Gesuale's forecast may appear a bit overzealous, some of his modeling can be supported by SpaceX's aggressive expansion into artificial intelligence (AI) infrastructure. Over the last month, SpaceX has signed multiyear, multibillion-dollar capacity-leasing agreements with Google Cloud, Anthropic, and Reflection AI.
By deploying graphics processing unit (GPU) clusters in its Colossus data centers and monetizing them through these agreements, SpaceX swiftly created a recurring revenue stream that complements its rocket-launch and satellite-broadband operations. These deals help validate the convergence narrative: AI training and inference demand massive, reliable power and connectivity -- areas where SpaceX's vertically integrated platform already offers competitive advantages.
This narrative dovetails with an analysis published by investment bank Oppenheimer, which sees Starlink becoming a disruptive force in the $1.6 trillion U.S. communications industry. Starlink's expanding subscriber base could begin to threaten legacy wireless carriers, specifically in rural areas, and it has the potential to extend its business into mobile handsets. Becoming further entrenched in critical applications beyond connectivity could reduce churn and enhance Starlink's pricing power.
Taken together, the AI compute deals and Starlink's potential telecom trajectory reinforce the broader flywheel: Starlink revenue helps fund Starship development, which in turn lowers the unit economics for deploying AI compute infrastructure and satellite constellations at scale.
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$
152.16
Should investors buy SpaceX stock right now? Despite the exciting long-term vision some have for the company, pouring substantial capital into SpaceX stock at current levels carries risk. The $800 price target assumes flawless execution on Starship's development timeline, regulatory approvals for frequent launches, and the successful scale-ups of both its satellite constellations and its data center services. Delays in any of these areas could materially impede SpaceX's growth trajectory and put pressure on its near-term cash flow.
As a recently public company, SpaceX also faces natural post-IPO volatility, governance considerations tied to Musk's concentrated leadership, and the possibility that its optimistic valuation multiples have already priced in aggressive growth assumptions. In addition, macroeconomic shifts such as decelerating AI capital expenditure from the hyperscalers or slower enterprise adoption of new connectivity platforms could drag on the company's financials.
While Raymond James' infrastructure thesis for the company offers a coherent framework, smart investors should also carefully weigh the execution and market risks. By dollar-cost averaging their way into a position gradually, or waiting for the company to hit some more key operational milestones before making a decision on whether or not to buy, investors can gain a more balanced view, and likely find a more reasonable entry point than they'd get by making an all-in financial commitment today. While SpaceX's upside case is compelling, the path to multibagger gains is never guaranteed, and it never comes without significant hurdles.
June quarter earnings topped guidance on broad demand strength and strong execution, generating a double-digit return on invested capital
Expect continued momentum in September quarter with mid-teens revenue growth and double-digit margin
Affirming full-year guidance for adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion
Further strengthened investment grade balance sheet through debt paydown, and announced a 15 percent increase to dividend payment beginning in September quarter
, /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter and full year 2026. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.
"Today, we reported our June quarter results, and it is clear that Delta's brand and industry position are stronger than ever. We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business," said Ed Bastian, Delta's chief executive officer.
"Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth. For the full year, we are affirming the guidance we set at the start of the year to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind. This reinforces Delta's durability while positioning us to continue our momentum into 2027."
June Quarter 2026 GAAP Financial Results
Operating revenue of $19.8 billion Operating income of $1.9 billion with an operating margin of 9.4 percent Pre-tax income of $2.0 billion with a pre-tax margin of 10.2 percent Earnings per share of $2.44 Operating cash flow of $1.6 billion June Quarter 2026 Non-GAAP Financial Results
Operating revenue of $17.7 billion Operating income of $1.6 billion with an operating margin of 8.8 percent Pre-tax income of $1.4 billion with a pre-tax margin of 7.7 percent Earnings per share of $1.56 Operating cash flow of $1.7 billion Financial Guidance1
FY 2026
Earnings Per Share
$6.50 - $7.50
Free Cash Flow ($B)
$3 - $4
Gross Leverage2
Approx. 2x
3Q26
Total Revenue YoY (%)
Up Mid-Teens
Operating Margin
11% - 13%
Earnings Per Share
$2.00 - $2.50
Guidance for the September quarter assumes fuel at the forward curve as of July 2, 2026, and includes a refinery benefit of 5-cents per gallon. This results in a projected all-in fuel price for the quarter of approximately $3.15 per gallon.
Revenue Environment and Outlook
"Revenue grew 14 percent in the June quarter, at the high end of our expectations, increasing more than $2 billion over last year on broad demand strength," said Joe Esposito, Delta's chief commercial officer.
"With continued momentum across customer segments and diverse revenue streams, we are confident in the sustainability of yield and revenue strength. For the September quarter, we expect revenue to grow mid-teens over prior year on modest capacity growth, with unit revenue growth improving sequentially. While still early, current trends provide a constructive setup for this strength to extend into the December quarter."
Record June quarter revenue reflects broad demand strength and growing brand preference: June quarter total revenue increased 14 percent over the same period last year to a record $17.7 billion on approximately 1 percent capacity growth. Adjusted total unit revenue (TRASM) grew 12.4 percent over prior year. Main cabin unit revenue grew double-digits, marking the second consecutive quarter of positive main cabin growth. Domestic unit revenue grew 12 percent year-over-year and international unit revenue increased 8 percent, led by Latin. Diversified, high-margin revenue streams continue to differentiate Delta's performance: Diverse revenue streams accounted for 61 percent of total revenue, up 2 points versus the same period last year. Premium revenue grew 17 percent year-over-year on yield strength and continued investment in premium seats. MRO revenue growth of 32 percent was primarily on legacy engine platforms. Cargo revenue increased 39 percent, driven largely by volume. Loyalty momentum powered by growing member engagement across ecosystem: Loyalty and related revenue grew 19 percent, with SkyMiles member engagement continuing to expand beyond air travel within the partner ecosystem. American Express remuneration of $2.4 billion grew 16 percent over last year, supported by accelerating card acquisitions and the seventh consecutive quarter of double-digit year-over-year growth in cardholder spend. Travel products and non-air partnership revenue increased nearly 20 percent over prior year. Corporate sales3 grew double-digits in all sectors: Corporate sales accelerated in the June quarter, led by Aerospace & Defense, Banking, and Automotive, with strong performance in coastal and core hubs. Sustained strength in premium product demand drove a more than 25 percent increase in premium corporate sales, benefiting from recent investments in Delta Comfort and Delta Premium Select.
1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures
2 Adjusted debt to EBITDAR
3 Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period
Cost Performance and Outlook
"Delta delivered June quarter results above guidance, with an operating margin of 8.8 percent and earnings of $1.56 per share. In the September quarter, we expect earnings per share to grow over prior year to $2.00 to $2.50 on an operating margin of 11 to 13 percent," said Erik Snell, Delta's chief financial officer. "Non‑fuel unit cost performance is expected to improve modestly from the June quarter with further progression in the December quarter as capacity growth begins to normalize. This puts us back on a path toward our long-term framework of low-single-digit non-fuel unit cost growth."
June Quarter 2026 Cost Performance
Operating expense of $17.9 billion and adjusted operating expense of $16.1 billion Adjusted non-fuel costs of $11.1 billion Non-fuel CASM was 14.09¢, an increase of 6.8 percent year-over-year Adjusted fuel expense of $4.4 billion was up 77 percent year-over-year Adjusted fuel price of $3.93 per gallon increased 75 percent year-over-year with a refinery benefit of 11¢ per gallon inclusive of a 5¢ discrete impact from a temporary refinery outage Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3 Balance Sheet, Cash and Liquidity
"Through the first half, we generated $4.1 billion of operating cash flow and delivered $1.4 billion of free cash flow. The durability of our cash generation enables us to consistently reinvest in the business, strengthen our balance sheet and grow shareholder returns. Debt reduction remains a top priority, and we expect to reach gross leverage of approximately 2x by year-end," Snell said.
Adjusted net debt of $13.6 billion at June quarter end, a reduction of $709 million from the end of 2025 Payments on debt and finance lease obligations for the June quarter of $536 million Weighted average interest rate of 4.9 percent with 78 percent fixed rate debt and 22 percent variable rate debt Adjusted operating cash flow in the June quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $209 million Air Traffic Liability ended the quarter at $10.0 billion Liquidity4 of $7.7 billion at quarter-end, including $3.1 billion in undrawn revolver capacity
4 Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities
June Quarter 2026 Highlights
Operations, Network and Fleet
Led all carriers5 in on-time arrival and departure performance for the quarter and set an all-time6 Delta record for domestic mishandled baggage rate (MBR). Implemented proprietary Baggage AI technology in Atlanta which has driven improvement in Atlanta's year-to-date MBR by over 25 percent versus last year's strong baseline, with June improving 50 percent. Took delivery of 11 aircraft in the June quarter, including A350-900, A321neo, and A220-300 aircraft. Launched daily non-stop service from Los Angeles to Hong Kong and Chicago O'Hare, adding connectivity to key business markets from Los Angeles. Launched service to Porto, Malta, and Sardinia while adding service to Madrid, Nice, Rome, and Barcelona. Grew MRO presence and partnership portfolio with IndiGo (CFM56 engines) & LATAM (A320 components). Culture and People
Continued to invest in the Delta people with a 4 percent pay raise for eligible employees worldwide. Accrued nearly $500 million in profit sharing year-to-date towards next February's payout. Named to Points of Light's Civic 50 list for the ninth year in a row, the only commercial airline recognized among companies noted for their corporate social responsibility and civic engagement. Transported more than two dozen WWII veterans from Atlanta to Normandy, France to participate in D-Day remembrance ceremonies, honoring the 82nd anniversary of the Allied landings. Ranked No. 1 in Talent Readiness among the Wall Street Journal Leadership Institute's Best Companies for the Future index. Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the ninth consecutive year with 15,911 units of blood collected at 392 blood drives in the last 12 months. Customer Experience and Loyalty
Ranked No. 1 best U.S. airline for eighth consecutive year by The Points Guy. Unveiled Delta's next-generation Delta One suite for the A350-1000 fleet and announced an expanded suite offering for the A330ceo fleet, extending Delta's lead with the most business class suites of any U.S. airline. Enhanced Delta - American Express co-brand card portfolio with new travel benefits including a Delta exclusive benefit allowing card Members to check a second bag free on domestic Delta flights with no increase to the annual fee. Over 95 percent of aircraft are already equipped with fast, free Wi-Fi for SkyMiles members, and will reach 100 percent by year-end. New satellite upgrades are also coming online soon to deliver faster speeds and broader global coverage. Expanded Delta Sync partnerships, including new collaborations with The Wall Street Journal and Fox ONE to further enhance the onboard experience. Enhanced the partnership with T-Mobile, now offering T-Mobile customers who link their SkyMiles membership a complimentary premium beverage on board. Relaunched and expanded the decade-long partnership with Airbnb allowing SkyMiles members to earn miles on where they stay and on experiences once they arrive. Continued Delta Concierge rollout to over 50 percent of SkyMiles members, offering expanded self‑service and messaging during travel through an AI-enabled digital assistant in the Fly Delta app. Opened a second Delta One Lounge at LAX, growing system to five Delta One Lounges and 55 Sky Clubs. Environmental Sustainability
Issued the 2025 Delta Difference Report, highlighting Delta's continued commitment to a sustainable future. Began installation of innovative finlet aerodynamic devices on 737 fleet reducing emissions and fuel burn.
5 FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from Apr 1 - Jun 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0
6 Excludes COVID years
June Quarter 2026 Results
June quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.
GAAP
$
Change
%
Change
($ in millions except per share and unit costs)
2Q26
2Q25
Operating income
1,864
2,102
(238)
(11) %
Operating margin
9.4 %
12.6 %
(3.2) pts
(25) %
Pre-tax income
2,009
2,574
(565)
(22) %
Pre-tax margin
10.2 %
15.5 %
(5.3) pts
(34) %
Net income
1,604
2,130
(526)
(25) %
Diluted earnings per share
2.44
3.27
(0.83)
(25) %
Operating revenue
19,757
16,648
3,109
19 %
Total revenue per available seat mile (TRASM) (cents)
25.11
21.44
3.67
17 %
Operating expense
17,893
14,546
3,347
23 %
Cost per available seat mile (CASM) (cents)
22.74
18.73
4.01
21 %
Fuel expense
4,109
2,458
1,651
67 %
Average fuel price per gallon
3.66
2.21
1.45
66 %
Operating cash flow
1,596
1,856
(260)
(14) %
Capital expenditures
1,458
1,209
249
21 %
Total debt and finance lease obligations
13,952
15,056
(1,104)
(7) %
Adjusted
$
Change
%
Change
($ in millions except per share and unit costs)
2Q26
2Q25
Operating income
1,563
2,064
(501)
(24) %
Operating margin
8.8 %
13.3 %
(4.5) pts
(34) %
Pre-tax income
1,359
1,820
(461)
(25) %
Pre-tax margin
7.7 %
11.7 %
(4.0) pts
(34) %
Net income
1,027
1,385
(358)
(26) %
Diluted earnings per share
1.56
2.12
(0.56)
(26) %
Operating revenue
17,666
15,507
2,159
13.9 %
TRASM (cents)
22.45
19.97
2.48
12.4 %
Operating expense
16,102
13,443
2,659
20 %
Non-fuel cost7
11,091
10,247
844
8 %
Non-fuel unit cost (CASM-Ex) (cents)
14.09
13.20
0.89
6.8 %
Fuel expense
4,410
2,497
1,913
77 %
Average fuel price per gallon
3.93
2.25
1.68
75 %
Operating cash flow
1,651
1,844
(193)
(10) %
Free cash flow
209
733
(524)
(71) %
Gross capital expenditures
1,442
1,168
274
23 %
Adjusted net debt
13,591
16,316
(2,725)
(17) %
7 Updated definition excludes aircraft fuel and related taxes, Third-party refinery sales, MRO expense, and profit sharing
About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.
There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.
Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.
We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.
Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.
As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.
A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the award from Cirium, Delta has been recognized as the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S.
Forward Looking Statements
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; failure of the technology we use or depend on to perform effectively, including new and emerging technologies; increases in the price of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), our wholly-owned subsidiary that operates the Trainer refinery; failure to achieve expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial or other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports where we operate; significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of laws and regulations governing environmental protection, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.
Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.
DELTA AIR LINES, INC
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions, except per share data)
2026
2025
$ Change
% Change
2026
2025
$ Change
% Change
Operating Revenue:
Passenger
$ 15,607
$ 13,867
$ 1,740
13 %
$ 27,909
$ 25,347
$ 2,562
10 %
Cargo
294
212
82
39 %
521
421
100
24 %
Other
3,856
2,569
1,287
50 %
7,181
4,920
2,261
46 %
Total operating revenue
19,757
16,648
3,109
19 %
35,611
30,688
4,923
16 %
Operating Expense:
Salaries and related costs
4,762
4,402
360
8 %
9,302
8,485
817
10 %
Aircraft fuel and related taxes
4,109
2,458
1,651
67 %
6,851
4,869
1,982
41 %
Refinery expense
2,091
1,141
950
83 %
3,745
2,203
1,542
70 %
Contracted services
1,263
1,155
108
9 %
2,452
2,276
176
8 %
Landing fees and other rents
978
878
100
11 %
1,891
1,729
162
9 %
Aircraft maintenance materials and outside repairs
689
591
98
17 %
1,397
1,237
160
13 %
Regional carrier expense
673
651
22
3 %
1,322
1,264
58
5 %
Passenger commissions and other selling expenses
726
673
53
8 %
1,316
1,224
92
8 %
Depreciation and amortization
656
602
54
9 %
1,291
1,209
82
7 %
Passenger service
489
482
7
1 %
918
912
6
1 %
MRO expense
273
229
44
19 %
601
369
232
63 %
Profit sharing
328
470
(142)
(30) %
493
594
(101)
(17) %
Aircraft rent
168
137
31
23 %
311
274
37
14 %
Other
688
677
11
2 %
1,356
1,372
(16)
(1) %
Total operating expense
17,893
14,546
3,347
23 %
33,246
28,017
5,229
19 %
Operating Income
1,864
2,102
(238)
(11) %
2,365
2,671
(306)
(11) %
Non-Operating Income/(Expense):
Interest expense, net
(144)
(172)
28
(16) %
(296)
(350)
54
(15) %
Gain/(loss) on investments, net
349
735
(386)
(53) %
(202)
696
(898)
NM
Loss on extinguishment of debt
(1)
(20)
19
(95) %
(5)
(20)
15
(75) %
Miscellaneous, net
(59)
(71)
12
(17) %
(68)
(102)
34
(33) %
Total non-operating income/(expense), net
145
472
(327)
(69) %
(571)
224
(795)
NM
Income Before Income Taxes
2,009
2,574
(565)
(22) %
1,794
2,895
(1,101)
(38) %
Income Tax Provision
(405)
(444)
39
(9) %
(479)
(525)
46
(9) %
Net Income
$ 1,604
$ 2,130
$ (526)
(25) %
$ 1,315
$ 2,370
$ (1,055)
(45) %
Basic Earnings Per Share
$ 2.45
$ 3.28
$ 2.01
$ 3.66
Diluted Earnings Per Share
$ 2.44
$ 3.27
$ 2.00
$ 3.63
Basic Weighted Average Shares Outstanding
654
649
653
647
Diluted Weighted Average Shares Outstanding
658
652
657
652
DELTA AIR LINES, INC
Passenger Revenue
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
$ Change
% Change
2026
2025
$ Change
% Change
Ticket - Main cabin
$ 6,851
$ 6,347
$ 504
8 %
$ 12,256
$ 11,709
$ 547
5 %
Ticket - Premium products
6,920
5,899
1,021
17 %
12,282
10,605
1,677
16 %
Loyalty travel awards
1,247
1,092
155
14 %
2,277
2,033
244
12 %
Travel-related services
589
529
60
11 %
1,094
1,000
94
9 %
Passenger revenue
$ 15,607
$ 13,867
$ 1,740
13 %
$ 27,909
$ 25,347
$ 2,562
10 %
DELTA AIR LINES, INC
Other Revenue
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
$ Change
% Change
2026
2025
$ Change
% Change
Refinery
$ 2,091
$ 1,141
$ 950
83 %
$ 3,745
$ 2,203
$ 1,542
70 %
Loyalty and related
1,344
1,127
217
19 %
2,565
2,209
356
16 %
MRO
315
239
76
32 %
695
390
305
78 %
Miscellaneous
106
62
44
71 %
176
118
58
49 %
Other revenue
$ 3,856
$ 2,569
$ 1,287
50 %
$ 7,181
$ 4,920
$ 2,261
46 %
DELTA AIR LINES, INC
Total Revenue
(Unaudited)
Increase (Decrease)
2Q26 vs 2Q25
Revenue
2Q26 ($M)
Change
Unit Revenue
Yield
Capacity
Domestic
$ 10,673
15 %
12 %
13 %
2 %
Atlantic
3,112
8 %
7 %
9 %
1 %
Latin America
990
4 %
12 %
13 %
(7) %
Pacific
832
15 %
7 %
7 %
8 %
Passenger Revenue
$ 15,607
13 %
11 %
12 %
1 %
Cargo Revenue
294
39 %
Other Revenue
3,856
50 %
Total Revenue
$ 19,757
19 %
17 %
Third Party Refinery Sales
(2,091)
Total Revenue, adjusted (See Note A)
$ 17,666
13.9 %
12.4 %
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
Change
2026
2025
Change
Revenue passenger miles (millions)
66,767
66,417
1
%
123,236
122,095
1
%
Available seat miles (millions)
78,694
77,645
1
%
147,857
146,045
1
%
Passenger mile yield (cents)
23.38
20.88
12
%
22.65
20.76
9
%
Passenger revenue per available seat mile (cents)
19.83
17.86
11
%
18.88
17.36
9
%
Total revenue per available seat mile (cents)
25.11
21.44
17
%
24.08
21.01
15
%
TRASM, adjusted - see Note A (cents)
22.45
19.97
12.4
%
21.55
19.50
10
%
Cost per available seat mile (cents)
22.74
18.73
21
%
22.48
19.18
17
%
CASM-Ex - see Note A (cents)
14.09
13.20
6.8
%
14.58
13.68
7
%
Passenger load factor
84.8 %
85.5 %
(1)
pt
83.3 %
83.6 %
—
pts
Fuel gallons consumed (millions)
1,122
1,112
1
%
2,110
2,088
1
%
Average price per fuel gallon
$ 3.66
$ 2.21
66
%
$ 3.25
$ 2.33
39
%
Average price per fuel gallon, adjusted - see Note A
$ 3.93
$ 2.25
75
%
$ 3.32
$ 2.34
42
%
DELTA AIR LINES, INC
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
June 30,
(in millions)
2026
2025
Cash Flows From Operating Activities:
Net income
$ 1,604
$ 2,130
Depreciation and amortization
656
602
(Gain) loss on fair value investments
(337)
(731)
Changes in air traffic liability
(721)
(1,129)
Changes in profit sharing
325
469
Changes in balance sheet and other, net
69
516
Net cash provided by operating activities
1,596
1,856
Cash Flows From Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments
(1,244)
(996)
Ground property and equipment, including technology
(214)
(213)
Acquisition of strategic investments and related
(51)
—
Other, net
(3)
10
Net cash used in investing activities
(1,512)
(1,199)
Cash Flows From Financing Activities:
Proceeds from long-term obligations
103
1,998
Payments on debt and finance lease obligations
(536)
(2,941)
Cash dividends
(123)
(97)
Other, net
10
(29)
Net cash used in financing activities
(546)
(1,069)
Net Decrease in Cash, Cash Equivalents and Restricted Cash Equivalents
(462)
(412)
Cash, cash equivalents and restricted cash equivalents at beginning of period
5,235
3,941
Cash, cash equivalents and restricted cash equivalents at end of period
$ 4,773
$ 3,529
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the
same such amounts shown above:
Current assets:
Cash and cash equivalents
$ 4,665
$ 3,331
Restricted cash included in prepaid expenses and other
86
96
Other assets:
Restricted cash included in other noncurrent assets
22
102
Total cash, cash equivalents and restricted cash equivalents
$ 4,773
$ 3,529
DELTA AIR LINES, INC
Consolidated Balance Sheets
(Unaudited)
June 30,
December 31,
(in millions)
2026
2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 4,665
$ 4,310
Accounts receivable, net
4,307
2,850
Fuel, expendable parts and supplies inventories, net
2,558
1,601
Prepaid expenses and other
2,706
2,207
Total current assets
14,236
10,968
Noncurrent Assets:
Property and equipment, net
41,544
39,743
Operating lease right-of-use assets
6,162
6,244
Goodwill
9,753
9,753
Identifiable intangibles, net
5,962
5,966
Equity investments
4,041
4,222
Other noncurrent assets
4,623
4,421
Total noncurrent assets
72,085
70,349
Total assets
$ 86,321
$ 81,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of debt and finance leases
$ 3,442
$ 1,605
Current maturities of operating leases
869
809
Air traffic liability
10,020
7,157
Accounts payable
6,738
5,226
Accrued salaries and related benefits
3,935
4,906
Loyalty program deferred revenue
5,243
4,876
Fuel card obligation
1,100
1,100
Other accrued liabilities
2,257
1,945
Total current liabilities
33,604
27,624
Noncurrent Liabilities:
Debt and finance leases
10,510
12,507
Noncurrent operating leases
5,163
5,353
Pension, postretirement and related benefits
3,066
3,156
Loyalty program deferred revenue
4,327
4,386
Deferred income taxes, net
3,916
3,444
Other noncurrent liabilities
3,920
3,994
Total noncurrent liabilities
30,902
32,840
Commitments and Contingencies
Stockholders' Equity:
21,815
20,853
Total liabilities and stockholders' equity
$ 86,321
$ 81,317
Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.
Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.
Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.
Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:
Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.
MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here.
MTM adjustments on investments. Unrealized MTM gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.
Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understand and analyze our core operational performance in the periods shown.
Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted
Three Months Ended
2Q26 vs 2Q25
% Change
2Q26 vs 2Q25
$ Change
(in millions)
June 30, 2026
September 30, 2025
June 30, 2025
Operating revenue
$ 19,757
$ 16,673
$ 16,648
Adjusted for:
Third-party refinery sales
(2,091)
(1,476)
(1,141)
Operating revenue, adjusted
$ 17,666
$ 15,197
$ 15,507
14 %
$2,159
Three Months Ended
% Change
June 30, 2026
September 30, 2025
June 30, 2025
TRASM (cents)
25.11
21.09
21.44
Adjusted for:
Third-party refinery sales
(2.66)
(1.87)
(1.47)
TRASM, adjusted
22.45
19.22
19.97
12.4 %
Six Months Ended
June 30, 2026
June 30, 2025
TRASM (cents)
24.08
21.01
Adjusted for:
Third-party refinery sales
(2.53)
(1.51)
TRASM, adjusted
21.55
19.50
Operating Income, adjusted
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Operating income
$ 1,864
$ 2,102
Adjusted for:
MTM adjustments and settlements on hedges
(301)
(39)
Operating income, adjusted
$ 1,563
$ 2,064
Operating Margin, adjusted
Three Months Ended
June 30, 2026
June 30, 2025
Operating margin
9.4 %
12.6 %
Adjusted for:
Third-party refinery sales
0.9
0.9
MTM adjustments and settlements on hedges
(1.5)
(0.2)
Operating margin, adjusted
8.8 %
13.3 %
Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted
Three Months Ended
Three Months Ended
June 30, 2026
June 30, 2026
Pre-Tax
Income
Net
Earnings
(in millions, except per share data)
Income
Tax
Income
Per Diluted Share
GAAP
$ 2,009
$ (405)
$ 1,604
$ 2.44
Adjusted for:
MTM adjustments on investments
(349)
MTM adjustments and settlements on hedges
(301)
Loss on extinguishment of debt
1
Non-GAAP
$ 1,359
$ (332)
$ 1,027
$ 1.56
Three Months Ended
Three Months Ended
September 30, 2025
September 30, 2025
Pre-Tax
Income
Net
Earnings
(in millions, except per share data)
Income
Tax
Income
Per Diluted Share
GAAP
$ 1,777
$ (360)
$ 1,417
$ 2.17
Adjusted for:
MTM adjustments on investments
(311)
MTM adjustments and settlements on hedges
5
Loss on extinguishment of debt
6
Non-GAAP
$ 1,477
$ (363)
$ 1,114
$ 1.70
Three Months Ended
Three Months Ended
June 30, 2025
June 30, 2025
Pre-Tax
Income
Net
Earnings
(in millions, except per share data)
Income
Tax
Income
Per Diluted Share
GAAP
$ 2,574
$ (444)
$ 2,130
$ 3.27
Adjusted for:
MTM adjustments on investments
(735)
MTM adjustments and settlements on hedges
(39)
Loss on extinguishment of debt
20
Non-GAAP
$ 1,820
$ (435)
$ 1,385
$ 2.12
Year Ended
Year Ended
December 31, 2025
December 31, 2025
Pre-Tax
Income
Net
Earnings
(in millions, except per share data)
Income
Tax
Income
Per Diluted Share
GAAP
$ 6,185
$ (1,180)
$ 5,005
$ 7.66
Adjusted for:
MTM adjustments on investments
(1,212)
MTM adjustments and settlements on hedges
(21)
Loss on extinguishment of debt
26
Non-GAAP
$ 4,977
$ (1,179)
$ 3,798
$ 5.81
Pre-Tax Margin, adjusted
Three Months Ended
June 30, 2026
June 30, 2025
Pre-tax margin
10.2 %
15.5 %
Adjusted for:
Third-party refinery sales
0.8
0.8
MTM adjustments on investments
(1.8)
(4.4)
MTM adjustments and settlements on hedges
(1.5)
(0.2)
Loss on extinguishment of debt
—
0.1
Pre-tax margin, adjusted
7.7 %
11.7 %
Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:
Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Net cash provided by operating activities
$ 1,596
$ 1,856
Adjusted for:
Net cash flows related to certain airport construction projects and other
55
(12)
Operating cash flow, adjusted
$ 1,651
$ 1,844
Six Months Ended
(in millions)
June 30, 2026
Net cash provided by operating activities
$ 4,027
Adjusted for:
Net cash flows related to certain airport construction projects and other
38
Net cash provided by operating activities, adjusted
$ 4,065
Operating revenue, adjusted related to premium products and diverse revenue streams
Three Months Ended
% Change
(in millions)
June 30, 2026
June 30, 2025
Operating revenue
$ 19,757
$ 16,648
Adjusted for:
Third-party refinery sales
(2,091)
(1,141)
Operating revenue, adjusted
$ 17,666
$ 15,507
Less: main cabin revenue
(6,851)
(6,347)
Operating revenue, adjusted related to premium products and diverse revenue streams
$ 10,815
$ 9,160
18 %
Percent of operating revenue, adjusted related to premium products and diverse revenue streams
61 %
59 %
2 pts
Operating Expense, adjusted
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Operating expense
$ 17,893
$ 14,546
Adjusted for:
Third-party refinery sales
(2,091)
(1,141)
MTM adjustments and settlements on hedges
301
39
Operating expense, adjusted
$ 16,102
$ 13,443
Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")
We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:
Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.
MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Operating expense
$ 17,893
$ 14,546
Adjusted for:
Aircraft fuel and related taxes
(4,109)
(2,458)
Third-party refinery sales
(2,091)
(1,141)
MRO expense
(273)
(229)
Profit sharing
(328)
(470)
Non-Fuel Cost
$ 11,091
$ 10,247
Three Months Ended
2Q26 vs 2Q25
% Change
June 30, 2026
September 30, 2025
June 30, 2025
CASM (cents)
22.74
18.96
18.73
Adjusted for:
Aircraft fuel and related taxes
(5.22)
(3.25)
(3.17)
Third-party refinery sales
(2.66)
(1.87)
(1.47)
MRO expense
(0.35)
(0.27)
(0.29)
Profit sharing
(0.42)
(0.50)
(0.61)
CASM-Ex
14.09
13.08
13.20
6.8 %
Six Months Ended
% Change
June 30, 2026
June 30, 2025
CASM (cents)
22.48
19.18
Adjusted for:
Aircraft fuel and related taxes
(4.63)
(3.33)
Third-party refinery sales
(2.53)
(1.51)
MRO expense
(0.41)
(0.25)
Profit sharing
(0.33)
(0.41)
CASM-Ex
14.58
13.68
7 %
Total fuel expense, adjusted and Average fuel price per gallon, adjusted
Average Price Per Gallon
Three Months Ended
Three Months Ended
June 30,
June 30,
% Change
June 30,
June 30,
% Change
(in millions, except per gallon data)
2026
2025
2026
2025
Total fuel expense
$ 4,109
$ 2,458
$ 3.66
$ 2.21
Adjusted for:
MTM adjustments and settlements on hedges
301
39
0.27
0.04
Total fuel expense, adjusted
$ 4,410
$ 2,497
77 %
$ 3.93
$ 2.25
75 %
Average Price Per Gallon
Six Months Ended
Six Months Ended
June 30,
June 30,
% Change
June 30,
June 30,
% Change
(in millions, except per gallon data)
2026
2025
2026
2025
Total fuel expense
$ 6,851
$ 4,869
$ 3.25
$ 2.33
Adjusted for:
MTM adjustments and settlements on hedges
151
24
0.07
0.01
Total fuel expense, adjusted
$ 7,001
$ 4,892
43 %
$ 3.32
$ 2.34
42 %
Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and other, and (iii) strategic investments and related. These adjustments are made for the following reasons:
Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.
Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.
Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Net cash provided by operating activities
$ 1,596
$ 1,856
Net cash used in investing activities
(1,512)
(1,199)
Adjusted for:
Pension plan contributions
4
47
Net cash flows related to certain airport construction projects and other
70
28
Strategic investments and related
51
—
Free cash flow
$ 209
$ 733
Six Months Ended
(in millions)
June 30, 2026
Net cash provided by operating activities
$ 4,027
Net cash used in investing activities
(2,775)
Adjusted for:
Pension plan contributions
4
Net cash flows related to certain airport construction projects and other
75
Strategic investments and related
105
Free cash flow
$ 1,436
Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.
(in millions)
June 30, 2026
December 31,
2025
June 30, 2025
2Q26 vs 4Q25
$ Change
Debt and finance lease obligations
$ 13,952
$ 14,113
$ 15,056
Plus: sale-leaseback financing liabilities
1,749
1,779
1,807
Plus: unamortized discount/(premium) and debt issue cost, net and other
(12)
(6)
5
Adjusted debt and finance lease obligations
$ 15,688
$ 15,885
$ 16,868
Plus: fleet operating lease liabilities
2,591
2,780
2,880
Adjusted gross debt
$ 18,279
$ 18,665
$ 19,749
Less: cash and cash equivalents
(4,665)
(4,310)
(3,331)
Less: LGA restricted cash
(22)
(56)
(102)
Adjusted net debt
$ 13,591
$ 14,300
$ 16,316
$ (709)
Gross Capital Expenditures. We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:
Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.
Three Months Ended
(in millions)
June 30, 2026
June 30, 2025
Flight equipment, including advance payments
$ 1,244
$ 996
Ground property and equipment, including technology
214
213
Adjusted for:
Net cash flows related to certain airport construction projects
(16)
(41)
Gross capital expenditures
$ 1,442
$ 1,168
After-tax Return on Invested Capital ("ROIC"). We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital. Return on invested capital is tax-effected adjusted operating income (using our effective tax rate for each respective period) divided by average adjusted invested capital. Average stockholders' equity and average adjusted gross debt are calculated using amounts as of the end of the current period and comparable period in the prior year. All adjustments to calculate ROIC are intended to provide a more meaningful comparison of our results to comparable companies.
Interest expense included in aircraft rent. This adjustment relates to interest expense related to operating lease transactions. Adjusting for these results allows investors to better understand our core operational performance in the periods shown as it neutralizes the effect of lease financing structure.
Delta Air Lines' profit goal is in reach this year as the carrier passes along higher fuel costs to customers, pricing power CEO Ed Bastian expects to last even as oil prices drop from multiyear highs
"I think it's sustainable," Bastian told CNBC in an interview. He said fares will likely stay strong thanks to robust demand, more diverse seat options, and a more disciplined airline industry that's learned from the past and isn't likely to expand capacity as soon oil falls.
Delta on Friday forecast third-quarter per-share earnings of between $2.00 and $2.50, compared with analysts' estimates of $2.02 a share for the period. The company also projected revenue would be up in the mid-teens compared with the July-through-September period of 2025. For the full-year, the carrier reaffirmed its January per-share earnings forecast of between $6.50 and $7.50.
Here's what Delta reported for the second quarter compared with what Wall Street was expecting, based on consensus estimates from LSEG:
Earnings per share: $1.56 adjusted vs. $1.48 expectedRevenue: $17.67 billion adjusted vs. $17.53 billion expectedBastian said demand is strong across the board, noting that Delta, the most profitable U.S. airline, caters to higher-income customers in the K-shaped economy.
Indeed, its premium seat sales outpaced the back of the plane in coach. Its premium tickets like first class brought in $6.92 billion in revenue for the quarter, while the main cabin reported $6.85 billion in revenue.
Bastian said World Cup demand was stronger than expected, including from inbound visitors to the U.S. In an earnings release, the airline also said corporate travel rose in the second quarter, with the aerospace and defense, banking, and automotive sectors leading growth.
watch now
Carriers have scaled back growth plans and pruned unprofitable flights after this year's record run-up in fuel, and airfares have surged. According to the latest federal data, May airfare was up nearly 27% compared with last year, though executives say they still haven't passed the entirety of the higher fuel bill on to consumers. Bastian said Delta was passing along about 60% to consumers, and that should get to close to 100% this quarter.
Delta's second-quarter revenue per available seat mile, a measure of how much an airline is bringing in for each seat it flies, was up 17% from a year earlier, though its cost-per-available seat mile rose 21%. (Delta has other revenue streams including cargo, a maintenance business and its fuel refinery.)
Delta's net income dropped 25% in the second quarter from a year earlier to $1.6 billion, or $2.44 a share, though operating revenue was up 19% from the 2025 period to $19.76 billion. Adjusting for one-time items including third-party refinery sales, Delta posted earnings of $1.03 billion, or $1.56 a share.
Delta's refinery was also a bright spot, with revenue in the Trainer, Pennsylvania, facility surging 83% to $2.09 billion.
Delta Air Lines reaffirmed its full-year profit forecast and gave a stronger-than-expected third-quarter outlook on Friday, signaling confidence that recent fare gains can hold even as fuel prices ease from this year's highs.
HomeIndustriesAirlinesEarnings ResultsEarnings ResultsAir carrier’s stock rallies as strong demand fuels and earnings beat, affirmed full-year outlookUpdated July 10, 2026, 7:12 a.m. ET
Delta Air Lines’ stock was set to gain despite the company saying that profit fell — but beat expectations — even after the air carrier absorbed the highest quarterly fuel expense in its history. Photo: Getty ImagesShares of Delta Air Lines rose in early trading Friday, after the air carrier reported record second-quarter revenue and more than $1 billion in profit as travel demand remained strong despite surging fuel costs.
Operating revenue grew 14% to from a year ago to $17.7 billion, above the average analyst estimate compiled by FactSet of $17.55 billion.
About the Author
Tomi Kilgore is MarketWatch's managing editor, markets, and is based in New York. You can follow him on Twitter @TomiKilgore.
Soccer fans watch Spain celebrate over over Saudi Arabia during the FIFA World Cup 2026 match on June 21st at Atlanta Stadium. (Photo by Rich von Biberstein)
Icon Sportswire via Getty Images
The airline industry earnings season got off to a good start Friday as Delta reported strong second quarter results, beat Wall Street estimates and forecast a profitable full year, all despite absorbing an estimated $4 billion in increased 2026 fuel costs. “We’re seeing strong demand for our product,” Delta CFO Erik Snell told reporters on a media call on Thursday. He cited “Demand for all of our segments across the board, not only our premium product.”
As the industry continues to reflect broader economic trends, Snell said “Demand across the board for not only Delta but for the travel experience is so great. People are disproportionately placing their discretionary income in experiences and travel.”
For instance, he cited demand stimulated by World Cup games in the United States. Delta was initially concerned, he said, “because these types of events don’t always have a positive impact,” as some travelers avoid destinations where large crowds are expected. However, he said, “We’ve been pleasantly surprised with the inbound traffic to the U.S. to support the World Cup. We’ve certainly been a beneficiary of that travel.”
In general, airlines have been able to raise fares sufficiently to recapture much of the vast increase in the cost of fuel due to the Iran war. “We know the playbook at times like this when fuel is high,” Snell said, noting Delta’s $4 billion in increased full year fuel costs. In the second quarter, he said, Delta recovered about 60% of its added fuel cost, with that recovery rate expected to increase in the second half. Second quarter fuel costs were about $2 billion higher due, he said
When a reporter asked about the recent resumption of bombing in Iran, Snell responded, “Fuel will continue to remain volatile” and reminded that even “with higher fuel prices, we have managed to generate meaningful profit.” He noted that Delta’s ownership of a refinery benefits the carrier, contributing11 cents to the second quarter per share profit.
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Delta’s continued leadership of the airline industry, which has persisted since the turn of the century bankruptcies, has been reflected in its stock price gains. Through Thursday, Delta shares were up 29% year-to-date. Southwest shares were up 19%, United was up 14% and America was up 10%.
For the second quarter, Delta reported pre-tax income of $1.359 billion, down 25% from $1.820 billion in the same quarter a year earlier. Revenue was $17.7 billion, up 14%. Adjusted per share earnings were $1.56: analysts had estimated $2.02 per share. The carrier’s operating margin was 9%. In a press release, the carrier said it expects “continued momentum in 3Q with mid-teens revenue growth and double-digit margin,” as well as full-year adjusted earnings per share of $6.50 to $7.50, up 20% year over year.
Delta also said American Express remuneration grew 16% to $2.4 billion. Snell said remuneration will total $9 billion for the full year. Credit card partnerships have become increasingly important to the industry, with all three global carriers saying they eventually expect annual remuneration of $10 billion. Delta/American Express continue to lead the segment.
Delta’s gains reflected the broader expectations for the industry. In a note released Wednesday, Bank of America analyst Andrew Didora wrote, “We see a constructive setup into 2Q26 earnings, driven by strong demand trends and significantly lower fuel prices. Industry pricing has remained firm following the spring fare increases, while booking trends suggest a greater share of 3Q26 demand remains exposed to higher fares.”
Didora said industry capacity growth “remains relatively modest through the summer before accelerating in the fourth quarter,” noting “While the near-term supply backdrop remains supportive, we expect more capacity and lower fuel to result in moderating unit revenues.
Key Takeaways PepsiCo reaffirmed 2026 guidance after Q2 revenues rose 6.4% and core EPS increased 4%.International growth and margin gains offset weaker North America foods revenues and profit.Tariff refunds may add about one point of EPS growth as PepsiCo keeps investing in U.S. demand. PepsiCo, Inc. (PEP - Free Report) used its second-quarter earnings call to argue that the bigger story is not the modest earnings beat, but the split between a resilient international engine and a North America business still being rebuilt around affordability, portfolio shifts and away-from-home expansion.
Management reaffirmed the company’s 2026 guidance, but the discussion made it clear that investors remain focused on whether PepsiCo can turn improving volume trends in U.S. foods and beverages into stronger returns in the back half.
PEP Keeps Full-Year Targets IntactPepsiCo reported second-quarter core EPS of $2.20, beating the Zacks Consensus Estimate of $2.19. Revenues of $24.18 billion topped the consensus mark of $23.87 billion. Net revenues rose 6.4%, and core EPS increased 4% from a year earlier.
Chairman and CEO Ramon Laguarta said that the company’s first half featured its fastest global volume growth since 2022, with foods volume rising 3% and beverages increasing 2%. He framed that as evidence that PepsiCo’s brand and portfolio strategy is gaining traction.
CFO Stephen Schmitt said that PepsiCo reaffirmed its 2026 outlook, including organic revenue growth of 2-4% and core constant-currency EPS growth of 4-6%, though he also stated that earnings are tracking toward the low end of that EPS range.
PepsiCo Leans on Overseas MomentumLaguarta repeatedly shifted attention to the international business, which he said is becoming a larger and more profitable part of PepsiCo’s mix. International operations delivered strong performances across EMEA, Asia Pacific Foods and the International Beverages Franchise.
In the release, EMEA saw 10% reported revenue growth and 6% organic growth, while Asia Pacific Foods grew 12% reported and 9% organic. International Beverages Franchise revenues rose 11%, with 9% organic growth and 5% beverage volume growth.
Schmitt added that second-quarter international operating margin expanded by a full point, reinforcing management’s view that global growth is not coming at the expense of profitability.
PEP Defends Its U.S. Foods ResetThe sharpest investor scrutiny stayed on North America, especially PepsiCo Foods North America. PFNA’s second-quarter reported revenues fell 2%, and core constant-currency operating profit declined 8%, even as management highlighted improving category and share trends.
Laguarta said that affordability investments and growth in permissible and portion-control offerings helped turn the U.S. salty snacks category back to positive volume, with PepsiCo gaining volume share. He said that was a central strategic objective entering the year.
Still, he acknowledged that second-quarter volume improvement fell short of expectations. He cited a weaker consumer backdrop, driven mainly by higher gas prices, plus delays in executing some price investments and shelf-space gains with customers.
PepsiCo Sees Pressure in Impulse ChannelsAnalyst questions pushed hardest on convenience and gas, where PepsiCo said that traffic conversion into purchases weakened as fuel prices rose. Laguarta stated that the pattern was most visible in impulse channels and was a new pressure point in the quarter.
Management’s answer was not to retreat from value spending. Instead, Schmitt said that PepsiCo will keep “playing offense,” with higher North America advertising and marketing spending in the second half while refining customer-by-customer trade and pricing tactics.
On the beverage side, PBNA’s operating margin fell about 90 basis points. Schmitt said that about half of the gross profit rate decline came from the Alani commercial arrangement, with the rest tied to channel softness and mix.
PEP Finds Help From Tariff RefundsSchmitt gave investors one important bridge for the second half: tariff refund claims tied to last year’s payments are expected to add about one full point of EPS growth for 2026. That benefit is set to help offset commodity inflation and support continued reinvestment.
He said that PepsiCo expects a gradual improvement in North America, stronger international performance and more productivity in the fourth quarter than the third quarter. He also flagged a higher year-over-year tax rate and the timing of certain costs as factors shaping the back-half cadence.
Laguarta added that productivity remains the funding mechanism behind the strategy, with automation, digitalization and logistics integration in the United States intended to support growth investments without starving overseas markets of capital.
PepsiCo Leaves a Measured ToneThe call’s overall tone was constructive, but not relaxed. Management sounded confident in the international platform and in the long-term logic behind affordability, portfolio transformation and away-from-home expansion in North America.
At the same time, PepsiCo spent much of the Q&A defending execution and timing in the United States, rather than declaring the turnaround complete. That left the back half positioned as a proof period for converting volume gains and strategic investments into cleaner profit momentum.
Zacks Signals for PEP StockPEP carries a Zacks Rank #4 (Sell), along with a Value Score of C, a Growth Score of B, a Momentum Score of D and a VGM Score of C. Within the Zacks framework, the rank carries the most weight because it reflects earnings estimate revisions, while the Style Score serves as a complementary indicator.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That combination points to relatively better growth characteristics than value or momentum, but the Rank #4 remains the more cautious near-term signal. The Zacks Rank can change after analysts revise estimates following the just-reported results, so the stock’s standing is not fixed.
PepsiCo’s NASDAQ: PEP Q2 earnings weakness isn’t a problem; it may be more of an opportunity for investors, as near-term hiccups have led to softness in the stock price. In this scenario, softness in the stock price creates a potential buying opportunity in a fundamentally sound, premium play on consumer staples. The critical details coming out of the report aren’t the mixed adjusted earnings-per-share (EPS) comparison, which was roughly in line with expectations, but rather the strong top-line performance, diversification strength, cash flow, and capital return, which remain on track.
PepsiCo Today
$137.86 -4.65 (-3.26%)
As of 07/9/2026 04:00 PM Eastern
52-Week Range$133.63▼
$171.48Dividend Yield4.29%
P/E Ratio21.64
Price Target$162.65
For investors, the key point is that PepsiCo’s growth engine improved from the prior year, driving healthy cash flow and enabling management to continue executing strategy while returning capital to shareholders. Strategy includes investing in growth opportunities and margins, which is what really matters. PepsiCo’s margins fuel an impressive capital return, which, at mid-2026 price points, is ultra-cheap. The dividend alone is worth more than 4%, and while the payout ratio is high relative to earnings, coverage is sufficient to keep the balance sheet healthy.
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Balance sheet highlights include the use of debt and relatively high levels at that, but all other metrics are healthy. Highly stable cash flow and 16x interest coverage support high investment-grade credit ratings from all agencies, with Q2 results including increased equity. Equity improved by more than 8%, further compounding the leverage from share buybacks. Buyback activity reduced the count by 0.3% in the first six months of the year, with PepsiCo continuing to target approximately $1 billion in repurchases and $7.9 billion in dividends for the full year.
PepsiCo’s Diversified Portfolio Drives Growth in Q2PepsiCo had a solid Q2, with reported revenue accelerating to 6.4% year over year (YOY). The $24.18 billion in revenue topped consensus estimates, underpinned by strength in international markets.
However, the cleaner read on underlying demand was more modest. Organic revenue increased 2.4%, with PepsiCo Foods North America contracting 2% and PepsiCo Beverages North America growing 1%.
International results were stronger, with International Beverages Franchise and Asia Pacific Foods each growing 9%, Europe, Middle East, and Africa growing 6%, and Latin America Foods growing 4%.
Foreign exchange contributed 2.2 percentage points to reported growth, while acquisitions and divestitures added a net 1.8 percentage points.
Margin is a concern, but only a slight one, given the results. The company experienced margin pressure but was able to mitigate the impact. The good news is that the bottom line, $2.20 in adjusted earnings per share (EPS), is up 4% compared to last year; the bad news is that earnings growth lagged the top line. Either way, earnings are sufficient to sustain the capital return outlook, which matters to long-term holders.
Analysts Look Past Q2 Results: Long-Term Outlook IntactAmong the factors supporting the long-term outlook is PepsiCo’s reaffirmed guidance. The company continues to expect about 3% in organic revenue growth and to return $8.9 billion in capital to shareholders. This will keep analysts and institutions in the market, and their trends reflect cautious optimism.
MarketBeat tracks 20 analysts rating PEP as a consensus of Hold, with one Sell, 11 Hold, and eight Buy ratings. That gives the stock a 40% Buy-side bias, while the average 12-month price target of about $165 still implies double-digit upside from recent levels.
Overall MarketRank™93rd Percentile
Analyst RatingHold
Upside/Downside18.0% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.63 Insider TradingN/A
Proj. Earnings Growth5.57%
See Full Analysis
The likely outcome is that this group continues to hold PEP, waiting for the upcoming inflection. It centers on massive cost-cutting, price rationalization, and efficiency improvements and is expected to begin yielding tangible results in the upcoming year. Institutions are more obviously bullish, owning more than 70% of the stock and buying at an aggressive $ 2.3-$1 pace over the trailing 12 months.
PepsiCo’s stock price shed 5% following the release, but a significantly larger decline is unexpected. The market remains within a consolidation range and well above lows set in 2025, on track to complete a full reversal in time. The biggest risk is the timing of the margin recovery, which may not come until early in 2027 or later. With thin volume in play, PepsiCo stock might wallow within its range for the foreseeable future, giving investors time to establish their positions.
Ultimately, PepsiCo is a value play. This Dividend King trades at a low 16.5x the current-year earnings forecast, about 50% below its historical average. The opportunity is to get into PepsiCo now while the market is mispricing it, and benefit from the dividend payments until the stock price reverts to historical norms. What the market gets wrong about PepsiCo is the impact of activist investors on the outlook, which is profitable, and valuation. PepsiCo isn't the beverage company it once was, but a multinational consumer-staples juggernaut with a considerable moat in high-margin, high-loyalty snack foods.
Should You Invest $1,000 in PepsiCo Right Now?Before you consider PepsiCo, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and PepsiCo wasn't on the list.
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Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
For decades, the data center was Intel's kingdom. It designed the processors that ran the world's servers, and AMD (AMD +5.71%) was an afterthought. That era is over.
In its first quarter of 2026, AMD's data-center segment generated $5.8 billion in revenue -- more than Intel (INTC +1.97%) pulled in from the same business over the same stretch. It was another quarter in which AMD out-earned its old rival in the data center, and it reframes the investment case for both stocks.
So, which one does the shift favor from here?
Image source: The Motley Fool.
AMD: the data-center engine takes over AMD's first-quarter data-center revenue rose 57% year over year to $5.8 billion. That was the standout line in a strong quarter. Total revenue climbed 38% to $10.3 billion, and data center is now the company's largest and fastest-growing business.
Profitability moved with it. AMD's non-GAAP (adjusted) earnings per share came in at $1.37, and even on a GAAP basis the company earned $0.84 per share and $1.4 billion in net income, at a gross margin above 50%. This is a business growing quickly and making money as it does.
One caveat is worth noting. AMD's data-center segment includes its Instinct artificial intelligence (AI) accelerators, not just server processors, so part of the crossover is a graphics-chip story rather than a pure server-CPU win. In server processors alone, AMD still ships fewer units than Intel.
But even there, the trend runs AMD's way. It now captures close to half of all server-CPU revenue while shipping only about a third of the units -- a sign customers are paying up for its higher-end parts.
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The stock reflects all of it. AMD shares are up more than 250% over the past year, and the momentum shows little sign of fading.
Both halves of the data-center business are pulling their weight: EPYC server processors for cloud providers, and Instinct accelerators for AI workloads. As long as that mix keeps growing, AMD's profit engine keeps getting stronger.
Intel: cheaper, but for a reason Intel's data center and AI group is still sizable, generating $5.1 billion in first-quarter revenue, up 22% year over year. That is healthy growth. And by total revenue, Intel remains the larger company, with more than $50 billion in sales over the past year to AMD's roughly $37 billion. Losing the data-center lead stings precisely because Intel is still the bigger business.
The trouble is everything around that growth. Intel is unprofitable on a trailing basis, dragged down by a foundry unit spending heavily to catch up in manufacturing. In the first quarter, that unit brought in less than $200 million from outside customers and lost money.
And the stock has fallen about 21% in just the past week, on reports that its critical 18A manufacturing process may not reach profitable yields until 2027.
The bull case, of course, is that Intel is cheap and turning around. Its most advanced process could still inflect, and its data-center revenue is growing again. For patient investors, that is a genuine value setup.
But cheap can stay cheap. Intel trades at more than 100 times expected earnings precisely because those earnings are depressed today, and the turnaround keeps taking longer than management promises.
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Which stock the shift favors So which is the better buy? Line the two up, and the contrast is stark. AMD is growing faster, earning more in the data center, and turning that growth into profit. Intel is cheaper, but it is losing money, ceding server share, and waiting for manufacturing to ramp up.
The main issue, of course, is valuation. AMD is not cheap. It trades at about 59 times forward earnings, a rich multiple that already bakes in much of its momentum. If data-center growth cools, the stock arguably has room to fall.
So neither is a bargain. Intel is a deep-value bet on a turnaround with a real chance of disappointing. AMD is a premium-priced bet on continued execution.
Between the two, I'd side with AMD. Paying up for the business that is actually winning its market -- growing 38% and converting that growth into profit -- strikes me as the better risk than betting on a rival to undo years of manufacturing setbacks on a timeline it keeps missing. The data-center crown has changed hands, and I think it stays changed.
Intel Corp (NASDAQ:INTC, XETRA:INL)has filed a patent describing a new way to build the memory that AI chips depend on, potentially removing one of its most expensive components.
In simple terms, it may be a solution to a bottleneck that is hampering the advancement of artificial intelligence.
Modern AI chips can perform calculations far faster than memory can supply them with data, so performance often depends less on the processor than on how quickly information reaches it.
The industry's current answer is high bandwidth memory, or HBM, which stacks memory chips vertically right next to the processor so data has a shorter distance to travel.
HBM works, but it is costly, and one reason is a component called a silicon interposer.
This is essentially an intricate silicon bridge that sits beneath the chips and carries thousands of tiny wires between them, and it is difficult and expensive to manufacture.
Intel's patent, published on 2 July, describes an alternative it calls cross-batch memory, or XBM.
The design aims to occupy the same physical space as HBM4, the next generation of the current standard, while eliminating the interposer entirely.
Instead of thousands of parallel connections, it would use a smaller number of faster serial links based on UCIe, an industry standard for connecting chip components.
The memory itself would be built differently, too, fabricated during the later manufacturing stages of a chip rather than made separately and stacked on top.
If it worked, the result would be memory that performs comparably to today's leading technology at lower cost.
That is a large "if".
The patent sets commercialisation only after 2030, and aligns the work with Intel's Z-Angle Memory project with SoftBank's SAIMEMORY venture.
History counsels caution here.
The record of proposed new memory technologies is littered with far more failures than successes, and most never reach production at all.
A patent application is a statement of intent rather than a product, and this one would need roughly a decade of development, manufacturing investment and industry adoption before it appeared in any data centre.
Intel's involvement nonetheless gives the effort more weight than a typical filing.
The company has a long history of creating industry standards that others adopt, and it retains influence across the server and networking hardware that data centres are built from.
Memory is also the point where the AI hardware market is most strained, with prices at record levels and supply short.
Any credible route to cheaper high-performance memory would attract attention across the industry.
For now, though, this is a design on paper.
The realistic takeaway is that Intel is thinking seriously about the memory bottleneck, not that it has solved it.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
UnitedHealth Group (NYSE:UNH | UNH Price Prediction) carries the highest conviction among managed care names heading into the company’s July 16 earnings report, and the setup is doing the talking. Shares of UNH last traded around $430.72 on July 9, sitting on a more than 28% year-to-date gain and a more than 42% one-year return. The repricing thesis showed up once in Q1 and is set up to repeat next Thursday.
The Repricing Is Working and the Q1 Report Proved It Q1 2026 was the inflection. UNH delivered adjusted EPS of $7.23 versus a $6.60 consensus, a 9.55% beat, while the medical care ratio improved 90 basis points to 83.9%. Operating cash flow jumped to $8.9 billion, up 63.34% year over year. That is disciplined pricing hitting the P&L, exactly the signal CEO Stephen Hemsley was hired back to produce.
Guidance Was Raised and the Valuation Is Reasonable Management pushed 2026 adjusted EPS guidance to greater than $18.25 per share, above the prior above-$17.75 mark. That works out to roughly 23 times forward earnings, with the analyst target at $418.04 and 23 buy or strong-buy ratings stacked against a single sell. Polymarket is currently pricing a 71% probability of a Q2 beat.
The Retirement Investor’s Cash Machine For an income-focused retiree, the capital return schedule is the prize. UNH plans roughly $8.0 billion in dividends and $2.5 billion in buybacks in 2026, with a $2 billion buyback tranche completed by end of Q2. The yield sits at 2.15% on an $8.84 annual payout. History says beats get paid: The Q1 report produced a 6.96% same-day gain and a 10.54% 30-day return, outrunning both the S&P 500 and the Nasdaq 100. If you want the Buffett-style approach to blue-chip income, our Never Touch the Principal framework is built around exactly these kinds of compounders.
Why UNH Beats the Obvious Alternatives Peers are still climbing out of the same cost-trend crisis. Humana (NYSE:HUM) is guiding FY 2026 adjusted EPS to at least $9.00, down from $17.14 in FY 2025, a 47% cliff driven by Star Ratings damage UNH does not carry. Elevance Health (NYSE:ELV) is recovering, but its Q4 2025 benefit expense ratio hit 93.5% and swung Health Benefits to a segment loss. UNH’s 83.9% MCR is in a different league, and its $388.9 billion market cap reflects the scale advantage.
UnitedHealth heads into the July 16 report with the strongest setup in managed care, and the data supports a constructive stance.
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NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that it is investigating Barry Diller’s bid to buy MGM Resorts International (NYSE:MGM). MGM is incorporated in Delaware.
Barry Diller is a member of MGM’s board of directors. People, Inc. (“People,” f/k/a/ IAC, Inc.), a company that Diller founded and controls, is MGM’s largest single stockholder. On June 1, 2026, People made an unsolicited bid to buy the remaining MGM stock for $48.30 per share.
If you are a current shareholder of MGM, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/mgm-resorts-investigation.
Key Details of the MGM ($MGM) Investigation:
Investigation Overview: Breaches of Fiduciary Duty in connection with Barry Diller’s offer to acquire the remaining stock of MGM for $48.30 per shareAction: Contact BFA Law to discuss your rights Why is the MGM Transaction being Investigated?
As a director, Diller owes fiduciary duties to MGM and its stockholders. People also recently entered a governance agreement with MGM that gave People the right to designate two MGM directors going forward. Because Diller “stands on both sides” of the proposed deal, and because other MGM fiduciaries could potentially receive benefits that other stockholders do not receive, these facts create a create conflicts of interest under Delaware law. If MGM and Diller reach an agreement, they must comply with Delaware’s strict requirements for “cleansing” these conflicts and ensuring the deal is fair to MGM’s stockholders.
In a news release on June 1, MGM stated that the board of directors “will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and all of its shareholders.”
BFA is investigating whether the potential agreement complies with Delaware law.
If you are a current holder of MGM stock, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
, /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) today announced that it plans to report second-quarter 2026 financial results before the opening of the New York Stock Exchange on Friday, July 24, 2026, in a news release to be posted on the company's website at www.NextEraEnergy.com/FinancialResults. The company will issue an advisory news release over PR Newswire the morning of July 24, with a link to the financial results news release on the company's website. As previously communicated, the company will make available its financial results only on its website.
John Ketchum, chairman, president and chief executive officer of NextEra Energy; Mike Dunne, executive vice president, finance and chief financial officer of NextEra Energy; and other members of the company's senior management team will discuss the company's second-quarter 2026 financial results during an investor presentation to be webcast live, beginning at 9 a.m. ET on July 24.
The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/FinancialResults. The financial results news release and the slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/FinancialResults, beginning at 7:30 a.m. ET on the day of the webcast. A replay will be available for 90 days by accessing the link listed above.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
Campbell's (CPB 2.37%) isn't merely a red-and-white-label soup business any longer. The company's diversified portfolio now covers snacks, sauces, and various meal brands.
Campbell's has also made significant investments in artificial intelligence, data, and insights to better understand shoppers' shifting habits and preferences. The company's stock is deeply undervalued and down 20% this year. Investors should take notice.
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Campbell's is refocusing Campbell's management is being strategic in its acquisitions to boost its business while cutting costs to protect delicate margins. Most notably, Campbell's purchased the increasingly popular pasta sauce brand Rao's in 2024 for $2.7 billion. A wide-ranging portfolio and technological advancements could set the food business up for substantial growth in the coming years.
Image source: Getty Images.
This isn't a plan without real challenges. Consumers are finicky, and there is real pressure on margins throughout the industry. Still, Campbell's is taking the corrective measures needed to succeed going forward. Net sales in the third quarter of fiscal 2026 decreased 4%. There may still be some short-term pain ahead, but I like the company's approach to gaining forward momentum.
Campbell's is currently trading slightly above $20 per share. Its forward and trailing P/E ratios are about 11, and PEG is below 1. These metrics suggest Campbell's is an attractive buy at the moment if the company can successfully execute its strategic plan to control costs and grow its portfolio. The company also pays a quarterly cash dividend of $0.39 per share, yielding over 7% at the current price.
There will continue to be short-term headwinds for Campbell's as consumers' wallets are strained, but the approach the company is taking to preserve its future as an iconic consumer staple is the right one.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Campbell's. The Motley Fool has a disclosure policy.
A 36% drop naturally raises the question: Is Palantir (PLTR 2.47%) finally cheap? With this stock, the honest answer is no -- even now.
Shares trade near $132 as of this writing, about 36% below their all-time high of $207.52.
But this comes at a time when the business is firing on all cylinders. In fact, Pantir's revenue growth rate has been accelerating in recent quarters. Even more, profits are soaring.
So what gives? And is this a buying opportunity?
Image source: Getty Images.
Elite growth, and real profits There is plenty going right. Palantir's first-quarter revenue rose 85% year over year to $1.63 billion, the fastest growth in the company's history as a public firm.
That wasn't a one-off, either. Growth has accelerated for several quarters as demand for its AI software has taken off across both government and corporate customers.
The U.S. commercial business, the core of the bull case, grew even faster, jumping 133% to $595 million. Total U.S. revenue more than doubled. Palantir's story is no longer just a government one, and that diversification is exactly what supporters wanted to see.
And this isn't growth bought at the expense of profit. Palantir's net income was $871 million in the quarter, a 53% net margin, while non-GAAP (adjusted) free cash flow reached $925 million and adjusted operating margin hit 60%.
Few software companies at this scale grow this fast while throwing off this much cash. Management raised its outlook, too, guiding for full-year 2026 revenue of about $7.65 billion, roughly 71% growth over 2025. Put simply, this is one of the fastest-growing large software companies around, and it's already highly profitable, which is a rare combination.
So the business, clearly, isn't the problem. If anything, it keeps outrunning expectations.
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The problem is still the price The trouble is what you have to pay for that growth.
Even after a 36% decline, Palantir carries a market capitalization above $300 billion. Against trailing revenue of about $5 billion, that is roughly 60 times sales, a multiple arguably no company grows into comfortably.
The earnings picture is just as stretched. The stock trades at about 85 times its expected earnings over the next year. The broader market, by comparison, sits in the low-to-mid 20s.
To put that premium in context, Palantir traded closer to 200 times forward earnings at its peak. So the stock is only "cheaper" relative to an extreme starting point, not against any normal yardstick.
Even giving Palantir full credit for its growth, that is an enormous multiple. To justify it, the company has to keep compounding at extraordinary rates for years, and do it without the deceleration that eventually catches every fast grower.
There are already faint hints of that gravity. The first quarter's 85% growth was dazzling, but guidance implies a step-down to about 71% for the full year. The bigger Palantir gets, too, the harder each additional point of growth becomes.
It's worth remembering how much of the recent decline is simply valuation coming back down rather than anything wrong with the company. That is what makes a richly priced stock so unforgiving. The same valuation multiple that powered the run works just as hard in reverse when sentiment turns, which is exactly what happened this week.
This is where a great company and a great stock part ways. Palantir could keep executing beautifully and still deliver mediocre returns, simply because the entry price is so high.
So is the drawdown a buying opportunity?
I don't think so, not yet. I would happily own a business growing 85% at these margins. But at about 85 times forward earnings, the stock still prices in near-flawless execution for years, and a 36% discount from an extreme high doesn't change that math much. What would might my mind is a materially lower price, or a few more quarters of 80%-plus growth that let the business grow into its multiple. Until then, I'm content to admire it from the sidelines.
Lyft, Inc. (LYFT demonstrates sustained revenue growth, improved profitability, and robust liquidity, supporting a buy rating. LYFT's valuation is attractive, trading at only 0.98x sales and a low P/E of 2.22x, offering a 28% margin of safety. Expansion into Europe, AV partnerships, and flexible revenue streams enhance growth prospects and operational leverage.
SK Hynix is about to go live on the U.S. market, and Micron (NASDAQ:MU | MU Price Prediction) will no longer be the lone go-to option for investors looking to play the DRAM shortage. Undoubtedly, time will tell if SK Hynix, which will debut with an ADR priced at $149 per share, is coming to the U.S. market a bit late in the cycle. With recent volatility hitting the broad semi scene, questions linger as to whether more than just perfection is priced in when it comes to the world’s top memory chip makers.
Of course, they’ve got the triopoly, pricing power, and could continue to grow earnings at an absurd pace for years to come. But just how much of that bullish narrative is already baked in? And what’s it going to take to keep the share price appreciation going from here? Shares of SK Hynix have already gained more than 640% in the past year and about 1,750% in the last five years.
Despite the hot run, though, shares still look quite attractively valued, especially compared to the likes of a U.S.-based Micron.
SK Hynix is a premium memory chip titan at a fairly reasonable price As to whether SK Hynix’s U.S. debut can help it move beyond the days of the South Korean discount remains the trillion-dollar question. In any case, it looks like SK Hynix is going to be coming in hot. And given its size, the big question is whether waves will be made as investors look to welcome another AI-driven behemoth into the mix.
Time will tell if a U.S. IPO is enough for SK Hynix to command a greater premium. In my view, there are a number of unique differentiators that make a fairly strong case for rotating from Micron into SK Hynix.
Apart from its very close relationship with GPU giant Nvidia (NASDAQ:NVDA), SK Hynix stands out as a more explosive play in high-bandwidth memory. Undoubtedly, Micron may have shifted gears to cater more to the big AI spenders and away from everyday consumers amid the latest boom in DRAM, but SK Hynix has already been flooring it some time ago.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Though it’s hard to tell, I do think that a lot of the recent volatility hitting the tech scene is more to do with profit-taking on the part of investors looking to get a piece of SK Hynix. With considerable oversubscription on the table and the potential for the opening day price to get a bit out of hand, I’d look to limit orders rather than placing market orders at the open.
SK Hynix could come in hot as it takes the title of the more explosive memory chip play In my view, $175 per share can’t be counted out as the hottest new AI issue hits the ground running in its first day of trading in the U.S. market. Going into 2027, things could get really interesting for SK Hynix, as its new Yongin fab comes online by summer.
The massive factory is going to help inject a wave of new AI memory supply on the market. As AI demand stays overheated, though, it’s already looking like that supply is going to get snatched up as they come off the assembly lines.
In any case, it’s hard not to be excited about SK Hynix, even if giant question marks surround the future of memory chip demands, if something like TurboQuant, which uses algorithmic efficiencies to reduce demand, were to make bigger strides. It’s a major risk that SK Hynix highlighted, and it’s one that might be met with great unpredictability.
Could a company like Alphabet (NASDAQ:GOOG) and Google really derail the memory chip run in its tracks? Or will demand for the latest and greatest that SK Hynix has to offer stay hot in spite of any such breakthrough efficiency innovations?
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ:Z, ZG) and certain of the Company’s senior executives for securities fraud after significant stock drops resulting from potential violations of the federal securities laws.
Lead Plaintiff Deadline: August 10, 2026Alleged Misconduct: Securities fraud relating to Zillow’s allegedly anticompetitive agreement with Redfin CorporationLargest Alleged Stock Drop: February 11, 2026 – 16.54% Stock Drop on Class C shares; 17.13% Stock Drop on Class A shares.Court: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights Investors have until August 10, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Zillow Class C and Class A common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned Breidert v. Zillow Group, Inc., et al., No. 26-cv-02016.
Why is Zillow Being Sued for Securities Fraud?
On February 6, 2025, Zillow entered into an agreement with Redfin through which Zillow became the exclusive provider of multifamily rental listings on Redfin’s platform and affiliate websites, including Rent.com. According to the complaint, during the relevant period, Zillow characterized the agreement with Redfin as a “partnership” that would provide Zillow exclusive access to Redfin’s advertising platform.
As alleged, in truth, under the terms of the agreement, Zillow paid Redfin $100 million to stop competing with Zillow, facilitate the transition of its multifamily rental advertising business to Zillow, and close the remainder of its business.
Why did Zillow’s Stock Drop?
On September 30, 2025, the FTC filed a complaint against Zillow and Redfin alleging violations of the federal antitrust laws. According to the FTC complaint, “Zillow and Redfin executed an unlawful agreement to remove competition from [the online rental marketplaces industry], starting with a $100 million payment to Redfin to exit the [Internet Listing Services] market.” In sum, the FTC alleged, “[t]his agreement is nothing more than an end run around competition on the merits with Redfin for customers…” This news caused the price of Zillow’s Class C and A common stock to decline 4.33% and 4.5%, respectively.
On February 10, 2026, Zillow’s CFO told investors that Zillow experienced increased legal expenses which “will result in approximately 200 basis points headwind to EBITDA margins in Q1.” On this news, the price of Zillow’s Class C and A common stock declined 16.54%, and 17.13%, respectively.
Finally, on May 7, 2026, Reuters reported that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.” This news caused the price of Zillow’s Class C and A common stock to decline 1.9% and 1.76%, respectively.
Click here for more information: https://www.bfalaw.com/cases/zillow-class-action-lawsuit.
What Can You Do?
If you invested in Zillow, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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MercadoLibre (MELI 0.12%), Latin America's largest e-commerce and fintech company, closed at a record high of $2,613.63 per share on June 30, 2025. Yet it's never split its stock.
Today, MercadoLibre trades at about $1,800. Concerns about higher spending and macro headwinds weighed down its stock, but its business is still growing like a weed. From 2025 to 2028, analysts still expect its revenue and EPS to grow at CAGRs of 29% and 27%, respectively.
Image source: Getty Images.
The expansion of its fintech platform into a full digital banking ecosystem for Latin America's underbanked population, the integration of those services into its market-leading e-commerce platform, and the growth of its higher-margin advertising business should fuel that growth. Economies of scale should further dilute its logistics expenses and widen its moat.
But will the company ever split its high-flying stock to broaden its appeal among smaller retail investors? Let's review what stock splits actually are, and if they actually matter to MercadoLibre's future.
Today's Change
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-0.12
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-2.22
Current Price
$
1,807.16
Why stock splits don't really matter We don't determine whether a stock is cheap or expensive based on its trading price. Instead, we should look at its price-to-sales and price-to-earnings ratios. At two times this year's sales, MercadoLibre looks cheap relative to its top-line growth. At 45 times this year's earnings, it looks a bit pricier -- but not too expensive -- relative to its bottom-line growth.
If MercadoLibre splits its stock, it's merely cutting a single pizza into smaller slices. Its price-to-sales and price-to-earnings ratios don't change. Most brokerages now offer fractional trading, so investors can simply buy a fraction of one share of MercadoLibre rather than wait for it to split into lower-priced shares.
Stock splits only really matter for options traders, who peg a single contract to a round lot of 100 shares, or the company's employees, who can receive more flexible stock-based compensation packages. So while a stock split might generate some short-term buzz, it doesn't mean much to long-term investors.
What should we expect from MercadoLibre? MercadoLibre probably won't split its stock this year, but I believe its scale, robust growth rates, and reasonable valuations still make it a great long-term investment.
With 84.1 million active commerce buyers and 82.9 million active fintech users in its latest quarter, it remains one of the easiest ways to profit from the secular growth of Latin America's e-commerce and fintech markets -- even if its near-term margin pressure makes it less appealing in this choppy market.
IBD's Alexis Garcia and Ed Carson preview key upcoming earnings reports from Goldman Sachs, UnitedHealth and Taiwan Semiconductor. Check out our daily newsletter!
Medtronic plc is rated buy with a $92 price target, reflecting conservative fiscal 2027 guidance and resilient growth platforms. Fiscal 2026 delivered $36.4B in revenue, the strongest growth in a decade, led by Cardiovascular and ablation solutions outpacing market rates. Guidance for fiscal 2027 excludes potential catalysts—MiniMed separation, tariff refunds, and Blackstone payment relief—implying room for upside surprises.
This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.94% per year. These returns cover a period from January 1, 1988 through June 1, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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The average growth rate of the S&P 500 (^GSPC +0.81%) over the long term is around 10%. So, if a company is growing around there, I'd consider that average growth. If it's in the mid-teens and higher, it's certainly above-average growth. However, when you get into stocks that are growing their revenue consistently above the 50% mark, I think they easily fall under the "hypergrowth" description, as these companies are growing far faster than their peers.
Three stocks that fall under this categorization are Broadcom (AVGO +3.24%), Micron (MU +4.55%), and IonQ (IONQ 0.42%). These three are all on sale, and look like they could continue posting incredible hypergrowth results.
Image source: Getty Images.
1. Broadcom Technically, Broadcom doesn't fall above the 50% growth mark I established above. But that's OK. During its latest quarter, it grew revenue at a 48% year-over-year pace, but that is only the beginning. Broadcom does a lot of things as a business, but the most exciting and fastest-growing is its custom AI chip business.
Broadcom assists other companies in designing custom AI chips that can run AI training and workloads at a more cost-effective rate than traditional GPU-based computing. The kicker is that the workload must be properly configured to run on one of these custom AI chips, but that's something that's now easily established, given that AI workloads have taken shape over the past few years.
Today's Change
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12.59
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401.28
Broadcom expects huge growth from this division, and projects to make $100 billion alone from AI semiconductors in 2027. Last year, Broadcom made only $64 billion in total. This easily categorizes it as a hypergrowth stock, with 66% and 62% revenue growth expected this year and next.
As the market starts to take a more focused approach to AI computing, I think Broadcom is an excellent investment to take advantage of that.
2. Micron Micron is also involved in the AI computing space, although it's in a different bucket. It makes memory chips, which are vital to data center operations in multiple ways. Regardless of the type of memory used, there is a major shortage because the memory chip industry isn't accustomed to this level of demand. As a result, prices have skyrocketed, allowing Micron to increase revenue and profits.
MU Revenue (Quarterly YoY Growth) data by YCharts
Growth this fast doesn't come around often, let alone to a company that's trading at more than a $1 trillion valuation. However, a question investors must wrestle with is how long chip demand will last and if there will continue to be a shortage as more production capacity comes online.
Micron's management team offered some commentary on this subject during its last earnings announcement and noted that it expected these tight conditions to persist beyond 2027. That's a big deal for investors, and Micron will likely continue being a hypergrowth company for the next few years.
3. IonQ IonQ is taking a different approach to computing than the other two on this list, as it operates in the quantum computing space. While this is still an early-stage technology that's proving its worth, IonQ is one of the leaders in this field. Its technology holds the world record for accuracy, proving its leadership status.
Today's Change
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-0.42
%) $
-0.19
Current Price
$
44.89
Even though commercially viable quantum computing technology isn't here yet, IonQ is still selling early-stage research systems and signing several partnerships with clients to learn and test uses for quantum computers. This is leading to soaring revenue, with IonQ's growth coming in at a jaw-dropping 755% year-over-year pace.
That easily constitutes a hypergrowth company, and if IonQ can become a company that has a viable product, it could grow into a massive company, as the quantum computing market could reach up to $72 billion in annual sales by 2035. Time will tell if IonQ can reach that point, but all signs are positive right now.
The stock market doesn't always get it right. Periodically, investors can find inefficiencies that can yield higher returns than the S&P 500 average. Sometimes the market notices underpriced assets right away, while in other cases it can take several months or even years. Investors who are looking for buy-the-dip opportunities in the tech sector may want to consider these three picks.
Image source: Getty Images.
1. Adobe Adobe (ADBE +0.75%) is one of the many software stocks that took a beating when Claude's artificial intelligence features fueled the plunge in the software as a service (SaaS) sector. Investors feared AI would replace many software businesses or stunt future growth, but that hasn't been the case for many companies, including Adobe.
Today's Change
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0.75
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1.65
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$
222.59
A 13% year-over-year revenue growth in Adobe's fiscal 2026 second quarter (ended May 29) helped set the record straight. Furthermore, Adobe's AI-first annual recurring revenue tripled year over year, exceeding $500 million. That part of the business is still relatively small, but it demonstrates that artificial intelligence is helping Adobe gain market share.
That's an important distinction, since the majority of Adobe's bearish sentiment has centered on the possibility that AI could hurt the business. The 37% year-to-date drop (as of July 8) now looks like a compelling buying opportunity, and some investors are already accumulating shares at this level.
The valuation isn't even a problem anymore thanks to the dip. It trades at a forward price-to-earnings (P/E) ratio of 9. Last year, Adobe's forward P/E ratio hovered in the high teens and low 20s.
2. Duolingo Duolingo (DUOL +1.91%) has lost almost 30% of its value this year, for much the same reasons as Adobe. Investors worried that consumers would use AI models to learn new languages instead of sticking with their Duolingo subscription plans.
Today's Change
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1.91
%) $
2.43
Current Price
$
130.00
Just like Adobe, Duolingo posted solid results that suggest AI is helping, not hurting, the business. Bearish investors wrongly interpreted a tailwind as a headwind, and that's part of the reason shares are up by more than 40% from their 2026 lows in April.
Duolingo trades at a forward P/E of less than 19, so it's not as cheap as Adobe. However, the edtech company commanded a forward P/E ratio of more than 100 less than a year ago, so it is a meaningful improvement.
The company is also growing faster than Adobe. First-quarter revenue rose 27% year-over-year was a solid result that assuaged AI concerns. Duolingo even highlighted how AI has helped the company strengthen its educational courses and provide more lessons.
This capability will become more valuable as Duolingo continues to expand into other subjects, rather than relying exclusively on people who want to learn new languages.
3. Broadcom Broadcom (AVGO +3.24%) is the leading provider of ASIC (application-specific integrated circuit) chips. This technology lets customers tailor AI chips to their specific needs, instead of relying exclusively on Nvidia's (NVDA 0.62%) all-purpose graphics processing units (GPUs).
Today's Change
(
3.24
%) $
12.59
Current Price
$
401.28
While Broadcom isn't going to dethrone Nvidia anytime soon, a more than 21% drop from its all-time high is the type of pullback the stock needed to become more compelling. Fundamentals remain strong, based on 48% year-over-year revenue growth in Broadcom's fiscal 2026 second quarter. AI-related revenue surged 143% year over year, accounting for almost half of total revenue.
As AI semiconductors make up a larger share of Broadcom's total revenue, overall sales growth should continue to accelerate. Broadcom Chief Executive Officer Hock Tan told investors to expect AI semiconductor revenue to more than triple year over year when it reports earnings for its fiscal 2026 third quarter ending Aug. 2.
The recent news of Apple (AAPL +0.85%) expanding its partnership with Broadcom supports Tan's optimism about future results. This multi-year deal is valued at more than $30 billion and offers meaningful revenue gains for the years ahead. Broadcom's recent price movement suggests growth is cooling off, but that couldn't be any further from the truth. This mismatch presents a buying opportunity for savvy investors.
Strategy (MSTR +0.02%) became a stock market sensation after pivoting its business from software to Bitcoin. CEO Michael Saylor's high profile on social media and vocal support of cryptocurrency helped make Strategy a household name among crypto investors. Strategy accumulated Bitcoin for several years, becoming one of its largest holders and issuing preferred shares that pay investors generous dividends with fixed yields.
Shockingly, Michael Saylor recently confirmed that Strategy sold 3,588 BTC for approximately $216 million to fund dividends on its preferred stock and to top off the company's cash reserve. It's a watershed moment for investors to evaluate just how durable Strategy's business model actually is.
Why Strategy's BTC sale is a big deal Strategy enjoys a strong tailwind when Bitcoin's price rises. The value of its BTC holdings would increase, and the stock has even traded at huge premiums to its BTC reserves at times. These circumstances allowed Strategy to practically print cash by issuing stock or borrowing money, funding its dividends and BTC purchases to grow its reserves, a flywheel that spun for quite a while.
Image source: The Motley Fool
But Bitcoin prices have continued to slide since peaking last fall. Strategy's common stock now trades roughly in line with the value of the company's BTC reserves and continues to decline as BTC prices drop. In other words, that flywheel is spinning the other way, and those tailwinds are now headwinds. Strategy selling BTC, below its $75,476 cost basis, mind you, is not a good sign.
It's too early to say that Strategy's business is breaking. The recent sale was a sliver, less than 1% of the company's total BTC reserves. That said, some cracks are starting to show. If Bitcoin continues to drop, Strategy may have to sell more of its BTC to raise funds. If so, it's even worse, as Strategy may need to sell more BTC to raise the same amount of cash.
Today's Change
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0.02
%) $
0.02
Current Price
$
93.89
It's common wisdom that the goal of investing is to buy low and sell high. Unfortunately, Strategy could face more situations where it bought high and must sell low to meet its dividend obligations. That's a red flag at best. In a worst-case scenario, it might be a sign that Strategy's business model is fatally flawed.
A business model built on Bitcoin, a volatile asset, needs to work in all markets, not only when prices go in one direction. Remember, it's impossible to know where Bitcoin might trade in the future. There hasn't even been a prolonged recession in the cryptocurrency age, as the pandemic was too short-lived. What if Bitcoin takes another five years to make new highs?
Protecting against risk is just as important as chasing upside. The company's new need to sell BTC is a risk investors should think hard about when deciding whether to invest in Strategy.
State Street Corporation (NYSE:STT) will release its second quarter earnings report before the opening bell on Thursday, July 16.
Analysts expect the Boston, Massachusetts-based company to report quarterly earnings of $3.31 per share, up from $2.53 per share in the year-ago period. The consensus estimate for State Street’s quarterly revenue is $3.87 billion. It reported $3.45 billion last year, according to Benzinga Pro.
On June 24, State Street increased its quarterly dividend from 84 cents to 92 cents per share.
Shares of State Street rose 1.6% to close at $180.16 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying STT stock? Here’s what analysts think:
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This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.94% per year. These returns cover a period from January 1, 1988 through June 1, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 10:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This commercial laundry systems company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days.
Alliance Laundry Holdings has a PEG ratio of 1.23 compared with 1.40 for the industry. The company possesses a Growth Score of A.
Southern Copper Corporation (SCCO - Free Report) : This copper mining company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
Southern Copper Corporation has a PEG ratio of 1.50 compared with 1.76 for the industry. The company possesses a Growth Score of A.
National Energy Services Reunited Corp. (NESR - Free Report) : This oilfield services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
National Energy Services Reunited has a PEG ratio of 0.35 compared with 0.58 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.94% per year. These returns cover a period from January 1, 1988 through June 1, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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VANCOUVER, Wash.--(BUSINESS WIRE)--ZoomInfo (NASDAQ: GTM), the all-in-one AI GTM platform, has released GTM Bench, a versioned benchmark that evaluates LLMs and AI agents on the work go-to-market teams actually do: building target lists, enriching records, scoring accounts, and reaching decision-makers. Version 1 covers more than 20 jobs, 4 systems, and 3 models, and the methodology, sample tasks, and grading rubrics are published for scrutiny. Most AI benchmarks measure reasoning inside a clos.
First Graphene Ltd (ASX:FGR, OTCQB:FGPHF, FRA:M11) earlier this week said it had signed a Memorandum of Understanding with The Sixth Element (Changzhou) Material Technology Co Ltd to distribute its PureGRAPH® CEM additive into China, a move that could open a route into the world’s largest cement and concrete market.
Managing Director and CEO Michael Bell told Proactive the opportunity was significant because of the scale of China’s cement industry. He said the UK market, where First Graphene has worked with Breedon Group, represented more than 16 million tonnes of cement per year, while the United States produced about 100 million tonnes.
By comparison, Bell said China produced up to 2.3 billion tonnes of cement, adding that “essentially, 50% of the cement used in the world today is out of China”. Even in a weaker market cycle, he said Chinese cement production could still be around 1.8 billion tonnes, making it “a very vast opportunity” for First Graphene.
The MOU appoints The Sixth Element as a key distributor for PureGRAPH® CEM in China, with exclusivity available subject to achieving annual purchase targets. Bell said the partner had been selected because it understood nanomaterials and had the market connections, presence and manufacturing capability needed in China.
Bell said First Graphene, as an Australian microcap, would face a complex task entering China alone. He said the scale of Chinese demand would also far exceed what the company could make from Australia or its other target markets, making domestic manufacturing an important potential catalyst.
The company’s PureGRAPH® CEM additive is designed to be added during the cement manufacturing process. Bell said the product did not require any change to the process, as it could be added on the conveyor belt before the final milling stage.
He said industrial-scale work with Breedon had shown the resulting cement was “somewhere between 15% and 20% stronger in both compressive and flexural strength”. He also said the additive offered improved protection against water absorption, sulfate erosion and chloride erosion.
Key catalysts now include validation of First Graphene’s results by The Sixth Element in China, negotiation of a distribution agreement and progress toward purchase milestones. Bell said the initial focus would be on getting product into the market, before moving toward a JV licensing arrangement at the 500-tonne mark, including plans to manufacture in China.
Interview highlights First Graphene has signed an MOU with The Sixth Element to distribute PureGRAPH® CEM into China. The agreement opens a potential route into the world’s largest cement and concrete market. Bell said China produces up to 2.3 billion tonnes of cement, representing around 50% of cement used globally. The MOU appoints The Sixth Element as a key distributor for PureGRAPH® CEM in China, with exclusivity available subject to annual purchase targets. Bell said The Sixth Element brings nanomaterials expertise, Chinese market connections, local presence and manufacturing capability. PureGRAPH® CEM is added during the cement manufacturing process without requiring any change to existing processes. Bell said industrial-scale validation showed cement can become around 15% to 20% stronger in compressive and flexural strength. The product also improves resistance to water absorption, sulfate erosion and chloride erosion, according to Bell. The next step is for The Sixth Element to validate or replicate First Graphene’s results in China. The pathway includes a potential distribution agreement, followed by a JV licensing arrangement and in-country manufacturing once milestones are reached.
Proactive: First Graphene Ltd (ASX:FGR, OTCQB:FGPHF) has signed a Memorandum of Understanding with The Sixth Element (Changzhou) Material Technology Co Ltd to distribute its PureGRAPH® CEM additive into China, opening a pathway into the world’s largest cement and concrete market. Here to discuss the opportunity is Managing Director and CEO Michael Bell. Michael, good to have you on again.
Michael Bell: Good morning. Great to speak.
Proactive: Let’s talk through this opportunity. How big is the opportunity in China and can you talk us through this MOU?
Michael Bell: We have an additive using graphene, and we have developed it based on what is happening in the United Kingdom. We have a great partner there, Breedon Group, which controls about 50% of the cement manufacturing within the United Kingdom.
To us, that market is big. It is somewhere upwards of 16 million tonnes of cement per year, and that is what we could sell our graphene into. If we penetrated that market 100%, it might be worth US$250 million to US$300 million to us, so we measure the opportunity in terms of percentage penetration of that number.
That is a big market. When you compare that to the likes of the United States, it produces about 100 million tonnes of cement. Then, when you look at China, it is up to 2.3 billion tonnes of cement. Essentially, 50% of the cement used in the world today is out of China.
Even if the market is depressed and it is not towards that 2.3 billion tonnes, and it might only be 1.8 billion tonnes, it does not really matter about those market cycles. It is still a very vast opportunity for us.
Proactive: I want to talk about PureGRAPH® CEM in a moment, but let’s talk about The Sixth Element. What attracted you to it and why is it the right partner for you in China?
Michael Bell: We have been looking for quite a while for partners in China. One of the complexities is something we have learned ourselves through commercial managers and trying to educate them in nanomaterials. Not having an understanding of a nanomaterial is definitely an impediment, both to the sales cycle and to how you put your product into the market.
With The Sixth Element, it is probably the most significant nanomaterials manufacturer in China and is very focused on the Chinese market. It comes with knowledge of the material, but also the market connections, the presence and the manufacturing capability that is quite well suited to us.
Proactive: I want to talk about that manufacturing capability. How does local manufacturing in China help the company grow?
Michael Bell: For us, as an Australian company and a small microcap, penetrating the Chinese market is only something we would dream of. It is a very complicated process to do so.
Secondly, the scale of what China demands far outstrips whatever we could even dream of making out of Australia or any other targeted market. It needs domestic manufacturing within China to feed that, and even then, it is a vast opportunity.
So, it is about baby steps. We need to get some product into the market first, and the MOU then triggers us at certain points to say, right, let’s manufacture in-country.
Proactive: Michael, let’s talk about the product itself, PureGRAPH® CEM. Can you talk us through what it is, what it does and why it is useful for cement and concrete?
Michael Bell: When you put very small amounts of graphene into a cementitious product, into concrete, you get a strength increase. In a laboratory setting, it can be anywhere between 20% and 40%, or even higher, in terms of compressive and flexural strength.
It is a known fact that it is very easy to do in a laboratory setting. We have done all of our validation and development of the product at industrial scale with our partner Breedon in the UK. We are not distracted by laboratory results that can sometimes hurt your implementation into industrial scale, so we have only done it at industrial scale.
When you put it in, it is part of the cement manufacturing process. It does not require any change to the process. It is simply an additive that is added on the conveyor belt that goes into the final milling stage of cement manufacture, so it does not have any impact process-wise.
You put small amounts of it in and, in practice, when you get the resultant cement, it is somewhere between 15% and 20% stronger in both compressive and flexural strength.
It also offers a much higher level of protection against water erosion after it is cured, so it resists water being absorbed by the concrete after cure. It also offers protection against sulfate and chloride erosion, which is common in precast water pipes and things like that.
This is an industrial, commercial-scale validated product ready to go.
Proactive: What happens with the MOU now? How does it become a formal agreement and what is next for the company?
Michael Bell: With respect to the MOU, the first step is to get The Sixth Element validating our results or replicating our results. Once it does that in-country, that ticks the box and says, yes, it is those sorts of results.
During that process, we will also negotiate a distribution agreement that says these are the milestones. This is in reference to the initial 200 tonnes. Then, at the 500-tonne mark, that distribution agreement becomes a JV licensing arrangement, in which we will put a factory in China, leverage what The Sixth Element has and make our product up there.
It is a phased approach. It is logical for us to do that and it helps the adoption of it in the market be a bit more commercially sensible.
Proactive: Plenty to look forward to, Michael. Thanks for your time this morning and we will speak again as it all unfolds.
NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF, FRA:NPM) earlier this week confirmed a large-scale gold-zinc-silver discovery from the first hole of its 2026 drilling program at the company’s 100%-owned Las Opeñas Gold Project in San Juan Province, Argentina.
Shares in the company surged in morning trade following the announcement, rising as high as A$0.031, representing an intraday gain of about 107% from the previous close of A$0.015.
Managing director Mark Purcell told Proactive that discovery hole 26-LODH-023 returned mineralisation across the full 663-metre hole at 0.41 grams per tonne gold equivalent. The result included 0.16 grams per tonne gold, 0.65% zinc and 4.53 grams per tonne silver from surface to end of hole.
Purcell said the first result from the six-hole program represented a strong start for NewPeak Metals. “We’ve put out our first hole of six holes this morning, and it’s showing 663m, the entire hole from surface at 0.41g gold equivalent,” he said.
He also pointed to a 282-metre interval from seven metres at 0.65 grams per tonne gold equivalent, describing the broader result as a “fantastic start” while the company awaited assays from the remaining five holes.
The key near-term catalyst for NewPeak Metals is the release of those outstanding assays, which Purcell said should be announced over the next three to six weeks. These results are expected to help the company assess the broader potential of the Las Opeñas system and inform the next stage of work.
Purcell said NewPeak Metals had been targeting a gold-dominant bulk-tonnage opportunity, while the presence of silver and zinc as potential by-products added further interest. He said the US viewed supply chains for both silver and zinc as vulnerable to its supply needs, making their presence in the system notable.
Looking ahead, Purcell said the company hoped to move toward declaring a resource at Las Opeñas as soon as possible, subject to the remaining assays. “We would love to get out there and declare a resource as soon as possible on Las Opeñas,” he said.
With five additional holes still to be reported, the coming weeks could provide important evidence on the scale and continuity of mineralisation at Las Opeñas following the discovery hole.
Interview highlights NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF) confirmed a large-scale gold-zinc-silver discovery from the first hole of its 2026 drilling program at the 100%-owned Las Opeñas Gold Project in San Juan Province, Argentina. Discovery hole 26-LODH-023 returned mineralisation across the full 663-metre hole at 0.41 grams per tonne gold equivalent. The full-hole result included 0.16 grams per tonne gold, 0.65% zinc and 4.53 grams per tonne silver from surface to end of hole. Shares in NewPeak Metals surged as high as A$0.031 in morning trade, representing an intraday gain of about 107% from the previous close of A$0.015. Managing director Mark Purcell described the result as a “fantastic start”. Purcell said NewPeak Metals had been targeting a gold-dominant bulk-tonnage opportunity. Silver and zinc were highlighted as potential by-products, with Purcell noting their relevance to US critical mineral supply chains. Assays from the remaining five holes are expected in the next three to six weeks. Purcell said NewPeak Metals would like to move toward declaring a resource at Las Opeñas as soon as possible, depending on the remaining assays.
Proactive: NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF) has delivered assay results from the first drill hole of its 2026 drill program at the 100%-owned Las Opeñas Gold Project. Here to discuss the results is managing director Mark Purcell. Mark, good to see you again.
Mark Purcell: Jonathan, great to be here.
Proactive: Good to have you. So let’s talk about these results. Talk us through the results and the scale of that intercept.
Mark Purcell: Absolutely. So we’ve put out our first hole of six holes this morning, and it’s showing 663 metres, the entire hole from surface, at 0.41 grams per tonne gold equivalent. Even within that, there’s a 282-metre interval from only seven metres at 0.65 grams per tonne gold equivalent. So fantastic start for us and crossing our fingers for the remaining five holes.
Proactive: Well, that’s the thing. It’s a great start, but there are more assays pending. What do you hope to see through those?
Mark Purcell: Similarly, we were always targeting a bulk-tonnage target, gold dominant. But to have silver and zinc sitting there as potential by-products as well is just fantastic.
Proactive: So let’s talk about silver and zinc. It’s on the US critical minerals list. Why are these metals so important?
Mark Purcell: I think for both of them, the US sees the supply chain as being particularly vulnerable to its supply needs. And for us to have those two sitting there as a by-product is fantastic.
Proactive: And being on that list, surely there’s support out there as well. We’ve got more assays coming, but what can we see next for the company over the next couple of months?
Mark Purcell: So we’ve got the assays remaining. They should be announced in the next three to six weeks. We’re also going to, depending on the assays, push forward with the resource. So we would love to get that done quickly if we can. And beyond that, grow the company for other opportunities and take it forward.
Proactive: Mark, plenty to look forward to. Thanks for your time this morning and we’ll speak again shortly.
Mark Purcell: Thanks, Jonathan. Appreciate it.
Proactive: Mark, assays to come, we know that, but what else can we expect over the next couple of months?
Mark Purcell: For the next three to six weeks, as you mentioned, the remaining five-hole assays will come. I think one of the biggest things we’re looking forward to is pinning those assay results. We would love to get out there and declare a resource as soon as possible on Las Opeñas.
Proactive: So plenty to look forward to in Argentina and for NewPeak Metals on the whole. Mark, we look forward to speaking with you again and thanks for your time this morning.
