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Hershey Today

$179.81 +4.36 (+2.49%)

As of 02:06 PM Eastern

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52-Week Range$160.07▼

$239.48Dividend Yield3.23%

P/E Ratio33.51

Price Target$217.50

After a sweet run-up in its stock back in February, Hershey NYSE: HSY is now trading 3.8% below its year-start price.

But while the share price is lingering, the company’s picture has changed. Having overcome soaring cocoa costs with remarkable pricing power, easing commodity pressures, and the proven strength of its brands, the company is positioning itself for a potential margin recovery.

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Most analysts rate it a Hold, with a 20% upside, as a balance of pricing and demand continues. Yet with a proven loyalty from customers and an alignment of new products, the company appears well-positioned if the market follows current trends.

Hershey's Pricing Power Is Paying OffWhat hurt the company recently was a well-known event. Cocoa prices surged to historic highs in late 2024 and 2025, squeezing the margins of every chocolate maker in the world. Hershey saw its net income drop from $797 million in the fourth quarter of 2024 to $224 million the next three months in 2025 and to $63 million the quarter after that.

For Hershey, which generated annual sales of $11.7 billion last year and holds a market capitalization of around $36 billion, the shock also arrived at an awkward moment. The company was already pursuing a broader portfolio reorganization. It was pushing harder into salty snacks, including Dot's Homestyle Pretzels. LesserEvil, and SkinnyPop, as well as protein products, such as Fulfil bars in North America.

Sales and Earnings Rebound Despite Higher CostsWhen cocoa prices soared, the story for Hershey shifted from long-term growth to short-term damage control. As a result, the company leaned into its pricing power. By the end of last year, organic price realization, or the benefit from price increases, rose 6% in the fourth quarter of 2025, then accelerated to 10% in the first quarter of 2026. Consumers might have grumbled, but they kept buying.

The first-quarter 2026 results told the broader story. Consolidated net sales reached $3.1 billion, up 10.6% from $2.8 billion a year earlier. Adjusted earnings per share came in at $2.35, an increase of 12.4%, and well above analyst estimates, compared with $2.09 in the prior-year period. Reported net income was $435 million, or $2.13 per share, from $1.10 a year earlier.

Operating results were also sharply higher. The first quarter’s reported operating profit rose 73.5% to $640.7 million, while the profit margin hit 20.6%, up 7.4 points from last year. The company said an increase in sales and prices helped offset higher commodity and tariff-related costs.

Looking ahead, management reaffirmed its full-year guidance of 4% to 5% net sales growth and 30% to 35% adjusted earnings per share (EPS) growth. The full-year adjusted EPS is projected to come in the range of $8.20 to $8.52 compared with $6.31 in 2025.

Lower Cocoa Prices Could Boost MarginsThe success of its salty snacks was evident in North America, which reported $2.5 billion in net sales. That segment recorded an acquisition-led 26% year-over-year increase, while North American confectionery products recorded an 8.3% increase.

The cost picture is improving, but not resolved. In the previous quarter, the gross margin fell 17 percentage points to 37% as cocoa prices remained high. Even in the first three months of 2026, adjusted gross margin rose to 40.4%, but was still down 80 basis points year over year due to elevated commodity and tariff-related costs.

The encouraging development is that cocoa prices have fallen dramatically from their late-2024 and early-2025 highs, which were well above $10,000 per metric ton. Having fallen below $4,000 earlier this year, the commodity is currently trading at nearly $5,000.

ONE Hershey Aims to Drive Long-Term GrowthBeyond cocoa, the company is making other structural moves.

In March, the company announced the unification of its sweet, salty, and protein brand portfolios under an integrated operating model called ONE Hershey. The company hopes that by having its products under a single umbrella, it can more effectively align strategy, cross-selling, brand messaging, in-store performance, and innovation.

The initiative also comes at a time of top management changes. A new president and CEO took over last August, and more recently, a new president of U.S. operations was appointed to oversee the integrated businesses.

Analysts See Upside But Remain CautiousOverall MarketRank™97th Percentile

Analyst RatingHold

Upside/Downside21.7% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.79 Insider TradingSelling Shares

Proj. Earnings Growth17.04%

See Full Analysis

The financial picture around the stock reflects the tension between the business quality and the cost environment.

Over the past 52 weeks, Hershey has traded between $160 to nearly $240 per share. At current levels around $175 per share, its price/earnings ratio of over 33 is not cheap, and the consensus among 23 analysts is that the stock is currently a Hold. Sixteen analysts recommend a Hold, and seven recommend a Buy.

With an average 12-month price target of $217.50, the current upside on the stock is above 20%. The highest price target is $260 and the lowest is $185, suggesting genuine uncertainty about the pace of margin recovery.

Hershey also carries a sizable quarterly dividend of $1.45 per share for a yield above 3%. The company has raised its dividend for 15 consecutive years,

The Next Few Quarters Could Be CriticalWhether the momentum that Hershey has created continues will soon be seen in its second-quarter earnings.

The question is whether its pricing power has held and how much lower cocoa costs will help. New management will also help set direction.

For investors, Hershey presents a choice between patience and precision. Hershey is a category-leading company with a storied brand in the consumer staples sector. It has proven pricing power, a 15-year dividend growth streak, and a commodity headwind that appears to be easing. The next quarter or two should show if the trajectory continues.

Should You Invest $1,000 in Hershey Right Now?Before you consider Hershey, you'll want to hear this.

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Key Takeaways HII secured a nearly $417.7M Navy contract for carrier and amphibious ship maintenance support.Huntington Ingalls supports fleet readiness through maintenance, modernization and technical services.HII's shipbuilding and sustainment expertise positions it for long-term naval modernization demand. Huntington Ingalls Industries (HII - Free Report) continues to strengthen its position in the naval sustainment market through its long-standing partnership with the U.S. Navy and broad portfolio of shipbuilding, maintenance and lifecycle support capabilities. The company provides mission-critical maintenance, modernization and technical support services that help ensure the operational readiness of some of the Navy's most advanced surface vessels.

A key example is HII's latest U.S. Navy contract. In June 2026, the company secured a nearly $417.7 million contract from the Naval Sea Systems Command to provide maintenance and repair support for aircraft carriers and amphibious ships. The contract is expected to be completed by June 2031.

Aircraft carriers and amphibious assault ships play a critical role in projecting naval power and supporting expeditionary operations worldwide. Maintaining key systems, such as aircraft elevators, is essential to ensuring uninterrupted flight deck operations, efficient movement of personnel and equipment, and overall mission readiness. HII's expertise in providing long-term sustainment and maintenance services reinforces its role in supporting the operational availability of the U.S. Navy's fleet.

With governments worldwide increasing investments in naval modernization and fleet readiness, demand for maintenance, repair and lifecycle support services is expected to remain strong. Huntington Ingalls' extensive experience in naval shipbuilding, sustainment and modernization, combined with its long-standing relationship with the U.S. Navy, positions it well to benefit from long-term defense modernization initiatives and the growing focus on maintaining combat-ready naval fleet.

Other Naval Sustainment Stocks to WatchOther aerospace and defense companies strengthening their presence in the naval sustainment market are discussed below:

Lockheed Martin (LMT - Free Report) : The company's Rotary and Mission Systems segment supports advanced naval warfare programs, including the AEGIS Combat System, the Littoral Combat Ship and Multi-Mission Surface Combatant programs, strengthening the operational capabilities of the U.S. Navy and allied fleet.

BAE Systems plc (BAESY - Free Report) : The company designs, builds, modernizes and supports a wide range of naval platforms, including aircraft carriers, destroyers and frigates. Its broad naval sustainment capabilities and shipbuilding expertise position it to benefit from rising global investments in naval fleet modernization.

The Zacks Rundown for HIIShares of HII have surged 11.9% in the past year compared with the industry’s 6.4% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.83X compared with its industry’s average of 2.62X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HII’s 2026 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Natera partnered with Aveta to integrate Signatera into a global Phase 3 LA-HNSCC trial.Signatera will assess MRD and treatment response across neoadjuvant to follow-up care.The trial may enroll 826 patients globally, with enrollment expected in the second half of 2026. Natera (NTRA - Free Report) recently announced a partnership with Aveta Biomics to support AVTA 30-01, a global Phase 3 registrational trial of its oral immunotherapy, APG-157, in patients with locally advanced head and neck squamous cell carcinoma (LA-HNSCC). Natera’s Signatera test will be integrated into the AVTA 30-01 Phase 3 study to assess molecular residual disease (MRD) and treatment response during neoadjuvant, induction, adjuvant and follow-up care.

Management noted that growing clinical evidence continues to demonstrate the value of Signatera for MRD detection in head and neck cancer. The company believes its collaboration with Aveta on the AVTA 30-01 trial will further demonstrate Signatera’s potential to advance the field and improve patient care.

Likely Trend of NTRA Stock Following the NewsShares of NTRA have lost 0.3% since the announcement on Monday. Year to date, the stock has gained 18.5% against the industry’s 2.3% decline. The S&P 500 has risen 9.7% in the same timeframe.

The partnership with Aveta Biomics is a positive development for Natera as it expands the clinical use of Signatera in a global Phase 3 registrational trial. Successful validation of Signatera for MRD monitoring and treatment response in head and neck cancer could strengthen its clinical evidence and support wider adoption. Over time, the collaboration could enhance Natera’s position in precision oncology while creating opportunities for biopharma partnerships centered on MRD-guided treatment strategies.

NTRA currently has a market capitalization of $39.00 billion.

Image Source: Zacks Investment Research

More on the NewsAPG-157 is Aveta’s first-in-class oral immunotherapy designed to benefit both immune-hot and immune-cold tumors in LA-HNSCC. The therapy has received FDA Fast Track and Orphan Drug Designations for this indication. The Phase 3 study builds on Phase 2 results that demonstrated favorable safety, evidence of tumor control, deep molecular responses and promising event-free survival outcomes.

The trial is expected to enroll approximately 826 patients across North America, Europe, Asia-Pacific and Australia, with patient enrollment to begin in the second half of 2026. It will include separate randomized cohorts for patients with resectable and unresectable locally advanced disease, with both treatment and control arms. Signatera will serve as a secondary endpoint to generate insights into disease recurrence and therapeutic response through circulating tumor DNA (ctDNA) monitoring to assess MRD.

Head and neck cancer affects roughly 950,000 people worldwide each year, and recurrence remains a significant cause of mortality despite advances in surgery, radiation and immunotherapy. This collaboration further expands Natera’s clinical evidence in head and neck cancer, following the positive results from the recently concluded Phase 2 SINERGY trial, which supported the use of Signatera MRD-guided monitoring in this disease setting.

Industry Prospects Favoring the MarketGoing by the data provided by Precedence Research, the minimal residual disease testing market was valued at $1.70 billion in 2025 and is expected to witness a CAGR of 12% through 2034.

Factors like the demand for highly sensitive technologies like next-generation sequencing and digital PCR, which accurately detect minimal residual cancer cells to guide treatment decisions and predict patient outcomes, are boosting the market’s growth.

Other NewsNatera recently announced a collaboration with CytoDyn to evaluate ctDNA dynamics and generate real-world molecular data in support of the latter’s metastatic colorectal cancer (mCRC) program.

In May, Natera announced a collaboration with Diakonos Oncology to incorporate its Signatera molecular residual disease test into Diakonos’ DOC-RM Phase I/II investigational immunotherapy trial for patients with refractory melanoma.

Natera received the FDA approval of Signatera CDx as a companion diagnostic (CDx) for use with adjuvant atezolizumab immunotherapy in patients with muscle-invasive bladder cancer.

NTRA’s Zacks Rank & Key PicksNatera currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are BrightSpring Health (BTSG - Free Report) , Globus Medical (GMED - Free Report) and West Pharmaceutical (WST - Free Report) .

BrightSpring Health, currently carrying a Zacks Rank #2 (Buy), reported first-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion surpassed the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BrightSpring Health has an estimated long-term earnings growth rate of 46.5%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.

Globus Medical, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

Key Takeaways Bell delivered a helicopter to Texas DPS for law enforcement, emergency response and surveillance missions.TXT's Bell 407GXi offers versatility, advanced avionics and support for patrol, rescue and disaster response.Textron is positioned to benefit as governments and commercial operators modernize helicopter fleet. Textron (TXT - Free Report) continues to strengthen its position in the helicopter market through its Bell business, which develops advanced rotorcraft for military, government and commercial customers worldwide. Bell's helicopters are designed to deliver reliable performance, mission flexibility and advanced capabilities across a wide range of operational environments.

A key example is Bell's latest delivery to the Texas Department of Public Safety. In May 2026, the company delivered a new Bell 407GXi helicopter to the agency, reinforcing its long-standing relationship with Texas DPS. The aircraft will support a variety of missions, including law enforcement, emergency response and aerial surveillance.

The Bell 407GXi is a light single-engine helicopter known for its versatility, reliability and advanced avionics. Its ability to perform missions ranging from patrol and search-and-rescue to disaster response makes it a preferred platform for government agencies and commercial operators. The helicopter enhances operational flexibility while enabling operators to respond effectively to evolving mission requirements.

With governments and commercial operators continuing to modernize their helicopter fleet, demand for advanced rotorcraft is expected to remain healthy. Textron's broad helicopter portfolio, combined with Bell's decades of experience in rotorcraft manufacturing and innovation, positions it well to benefit from long-term opportunities in the global helicopter market.

Other Companies Expanding Their Helicopter CapabilitiesOther aerospace and defense companies expanding their helicopter capabilities are discussed below:

Northrop Grumman Corporation (NOC - Free Report) : The company's Fire Scout is a combat-proven autonomous helicopter system that provides real-time intelligence, surveillance, reconnaissance, target acquisition, laser designation and battle management capabilities without relying on manned aircraft or space-based assets.

Lockheed Martin Corporation (LMT - Free Report) : Through its Sikorsky business, the company manufactures renowned military helicopters used for combat, transport and rescue missions worldwide. Its portfolio includes the Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters.

The Zacks Rundown for TXTShares of TXT have surged 12% in the past year compared with the industry’s 6.3% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.00X compared with its industry’s average of 2.62X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TXT’s 2026 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

It has been about a month since the last earnings report for Credo Technology Group Holding Ltd. (CRDO - Free Report) . Shares have added about 18.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Credo Technology Group due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Credo Technology Group Holding Ltd. before we dive into how investors and analysts have reacted as of late.

Credo's Q4 Earnings & Revenue BeatCredo Technology reported fourth-quarter fiscal 2026 non-GAAP diluted earnings per share of $1.16, which beat the Zacks Consensus Estimate of $1.03 by 12.6%. GAAP diluted earnings rose to 88 cents from 20 cents in the prior-year quarter.

Revenues surged 157% year over year to $437 million and surpassed the consensus mark of $430.1 million by 1.6%. The upside was driven by strong AI connectivity demand, with the top four end customers each contributing at least 10% of revenues.

Management said fourth-quarter revenues exceeded the company’s total fiscal 2025 revenues, highlighting the speed of the current AI infrastructure ramp. Fiscal 2026 revenues surpassed $1.3 billion, more than tripling year over year.

The company’s portfolio is positioned around high-speed copper and optical interconnects that help large AI clusters improve reliability, power efficiency and signal integrity. Management noted that connectivity has become a critical constraint as clusters scale from tens of thousands to hundreds of thousands of GPUs.

AECs remained a key growth engine. In addition to AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs). The company expects mid-single-digit sequential growth in the first half of fiscal 2027, followed by a stronger second-half acceleration buoyed by its optical portfolio. Management projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. This is expected to support more than 80% year-over-year revenue growth for the full year.

The acquisition of Dust Photonics strengthens Credo’s high-speed optical connectivity portfolio with silicon photonics PIC technology. The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions.

Margins Reflect Strong Operating LeverageNon-GAAP gross profit was $298.4 million in the fourth quarter compared with $114.5 million in the year-ago period. Non-GAAP gross margin expanded to 68.3% from 67.4% a year earlier.

Non-GAAP operating expenses increased to $81.7 million from $52 million in the prior-year quarter. The increase reflected continued investment in research and development. Non-GAAP operating income rose to $216.7 million from $62.5 million. Non-GAAP net margin reached 51.9% in the fiscal fourth quarter, underscoring the company’s ability to convert top-line growth into bottom-line profitability.

For fiscal 2026, the company reported a non-GAAP gross margin of 68.1%, improving by 310 basis points year over year, while operating margins expanded significantly to 47.8%.

Cash Flow NumbersCash flow from operations was a record $182.2 million in the quarter. Capital expenditures were $4.8 million, resulting in free cash flow of $177.5 million. Credo ended the quarter with cash, cash equivalents and short-term investments of $1.4 billion, up from $431.3 million at the end of the year-ago period.

Outlook Points to Continued ExpansionFor the first quarter of fiscal 2027, Credo expects revenues of $465-$475 million. Non-GAAP gross margin is projected between 67% and 69%, while non-GAAP operating expenses are expected in the range of $86-$90 million.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. The company anticipates non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels and non-GAAP operating expenses to rise approximately 50%, well below the expected revenue growth rate.

Four hyperscalers each contributed 10% or more of total revenues in the last reported quarter, with the top three customers representing 34%, 27% and 16% of revenues. Beyond the traditional hyperscalers, Credo is also seeing increasing demand from emerging Neocloud providers.

Credo continues to expect that three to four customers will account for more than 10% of revenues in the upcoming quarters.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 18.12% due to these changes.

VGM ScoresAt this time, Credo Technology Group has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Credo Technology Group has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerCredo Technology Group is part of the Zacks Electronics - Semiconductors industry. Over the past month, Marvell Technology (MRVL - Free Report) , a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended April 2026 more than a month ago.

Marvell reported revenues of $2.42 billion in the last reported quarter, representing a year-over-year change of +27.6%. EPS of $0.80 for the same period compares with $0.62 a year ago.

Marvell is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +38.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Marvell. Also, the stock has a VGM Score of F.

A month has gone by since the last earnings report for SAIC (SAIC - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SAIC due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Science Applications International Corporation before we dive into how investors and analysts have reacted as of late.

Science Applications' Q1 Earnings Beat Expectations, Revenues Rise Y/YScience Applications International reported better-than-expected results for the first quarter of fiscal 2027, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

SAIC’s non-GAAP earnings of $3.23 per share beat the Zacks Consensus Estimate of $2.26 by 42.9%. The bottom line increased 68.2% from the year-ago quarter’s earnings of $1.92.

Science Applications' fiscal first-quarter revenues increased 1.5% year over year to $1.91 billion and surpassed the Zacks Consensus Estimate of $1.78 billion by 6.9%.

SAIC’s Q1 in DetailSegment-wise, revenues from Defense and Intelligence, which accounted for 76.9% of revenues, totaled $1.47 billion and increased 2.3% year over year. Civilian revenues, which constitute 23.1% of revenues, totaled $440 million and decreased 0.9% year over year.

Net bookings were approximately $2.1 billion in the first quarter, which reflected a book-to-bill ratio of 1.1. The company’s trailing 12-month book-to-bill ratio was 1.0 at the end of the fiscal first quarter. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.

Selling, general and administrative (SG&A) expenses decreased 6.7% to $83 million. SG&A expenses, as a percentage of revenues, declined to 4.4% from 4.7% in the year-ago quarter.

Non-GAAP operating income increased year over year to $221 million from the year-ago quarter’s operating income of $158 million. The non-GAAP operating margin expanded 320 basis points (bps) year over year to 11.6%.

Adjusted EBITDA rose 41% to $222 million. Adjusted EBITDA margin for the quarter was 11.6% compared with 8.4% in the prior-year quarter.

Balance Sheet & Cash Flow Details of SAICScience Applications ended the fiscal first quarter with cash and cash equivalents of $109 million, significantly down from the previous quarter’s $182 million.

As of May 1, 2026, Science Applications’ long-term debt (net of the current portion) was $2.46 billion compared with $2.47 billion as of Jan. 30, 2026.

The company generated operating and free cash flows of $127 million and $118 million, respectively, in the fiscal first quarter.

During the fiscal first quarter, Science Applications repurchased shares worth $175 million and paid $17 million in dividends.

SAIC Provides Fiscal 2027 GuidanceScience Applications expects fiscal 2027 revenues between $7 billion and $7.2 billion.

Adjusted EBITDA is anticipated to be in the range of $720-$730 million, up from the earlier guidance of $705-$715 million. Adjusted EBITDA margin is expected to be in the band of 10.1-10.3%, up from the previous guided range of 9.9-10.1% band.

The company forecasts adjusted EPS in the range of $9.90-$10.10, up from the earlier guidance of $9.50-$9.70.

Science Applications estimates free cash flow for fiscal 2027 to exceed $600 million.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

VGM ScoresAt this time, SAIC has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SAIC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Reddit's DAUq grew 17%, WAUq 23% and ARPU 44% year over year in the first quarter of 2026. RDDT is expanding globally with machine translation, lifting international revenues and user growth. RDDT trades at a premium, but revenue and earnings estimates point to strong year-over-year growth. Reddit (RDDT - Free Report) shares have lost 28.2% in the past six months, in contrast to the broader Zacks Computer & Technology sector’s rise of 15.2%.

The company’s shares have also underperformed its peers like Pinterest (PINS - Free Report) , META Platforms (META - Free Report) , and Alphabet (GOOGL - Free Report) , which are expanding their footprint into advertising to compete in the rapidly growing digital ad market. While Pinterest and Meta Platforms’ shares have lost 20.8% and 13.4%, respectively, Alphabet shares have risen 13.4% in the past six-month period.

Reddit’s underperformance can be attributed to a challenging macroeconomic environment and seasonal volatility. Stiff competition in the digital advertising market poses a significant challenge for Reddit.

RDDT Stock Performance
Image Source: Zacks Investment Research

However, the company’s expanding portfolio, strong user engagement, including rising daily and weekly active users, gains in Average Revenue Per User (ARPU), and the expansion of advertiser tools such as Dynamic Product Ads (DPAs), Reddit Pixel, and CAPI have been key catalysts. These factors are expected to fend off competitors like Pinterest, Meta Platforms, and Alphabet.

RDDT Benefits From Expanding PortfolioReddit’s expanding portfolio has been a key catalyst in driving the company’s user engagement. In the first quarter of 2026, ARPU increased 44% year over year to $5.23, indicating that portfolio expansions are driving higher monetization per user. Reddit reported 126.8 million daily active uniques (DAUq), up 17% year over year, and 493.1 million weekly active uniques (WAUq), up 23% year over year.

Further expanding its portfolio, in June 2026, Reddit launched video in comments, allowing users to reply with short videos alongside text, images and GIFs for more expressive conversations. Users can upload an existing clip or record one directly within the comment box.

The feature is being rolled out across eligible public, safe-for-work communities, while moderators retain control over whether video comments are enabled and who can post them. The new addition makes discussions more immersive by letting users demonstrate ideas visually, further expanding engagement options and encouraging richer community interactions.

RDDT Rides on Strong International ExpansionReddit is benefiting from a robust international expansion strategy that is fueling both its financial performance and long-term growth prospects. In the first quarter of 2026, international revenues surged 76% year over year, outpacing the already strong 67% growth in U.S. revenues.

In the first quarter of 2026, International ARPU increased 51% year over year to $2.02, signaling improving monetization intensity across regions. The platform’s international daily active unique users grew 26% year over year to 73.3 million. These metrics highlight Reddit’s ability to attract and engage users outside the United States, which is critical for its advertising revenues.

One of the key drivers behind this international momentum is Reddit’s investment in machine translation, which has enabled the platform to support content in more than 30 languages, helping to build local communities and increase engagement outside the United States. The company is also investing in features like bot verification, improved onboarding, and faster app performance to enhance user experience.  The adoption of advanced ad products like Reddit Max and Dynamic Product Ads is helping advertisers achieve strong returns, further encouraging global brands to invest in Reddit’s platform.

Earnings Estimates for Reddit Show Upward TrendRDDT’s expanding portfolio and rising user engagement are expected to drive the company’s top-line growth.

For the second quarter of 2026, management expects revenues to be in the range of $715 million to $725 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $746.89 million, indicating year-over-year growth of 49.49%.

For the second quarter, the consensus mark for earnings is pegged at 99 cents per share, unchanged over the past 30 days. This implies year-over-year growth of 120%.

RDDT Stock Is OvervaluedReddit stock is currently trading at a premium, as suggested by its Value Score of F.

In terms of the forward 12-month price/sales ratio, RDDT is trading at 8.84X, higher than the broader Zacks Computer & Technology sector’s 6.49X.

RDDT Valuation
Image Source: Zacks Investment Research

ConclusionReddit’s prospects benefit from an expanding advertising business, an expanding clientele, and rising user engagement. These factors justify the company’s premium valuation.

RDDT stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways New NSF grant adds to growing U.S. government support for D-Wave.QBTS will provide dual-rail gate-model resources through its Quantum Circuits subsidiary.QBTS previously announced a proposed $100M CHIPS Act funding commitment. D-Wave Quantum (QBTS - Free Report) , or D-Wave, has secured a $1.5 million grant under the U.S. National Science Foundation’s National Quantum Virtual Laboratory (“NQVL”) program. The funding will support the company’s participation in ERASE (Erasure Qubits and Dynamic Circuits for Quantum Advantage), a Yale University-led initiative focused on developing the technologies needed for scalable, fault-tolerant quantum computing. The project brings together researchers from leading academic institutions and industry organizations to advance dual-rail gate-model quantum computing hardware, software, error correction and applications.

The University pioneered the dual-rail technology behind D-Wave’s gate-model program and later became part of the company through its January 2026 acquisition of Quantum Circuits, Inc., a Yale startup. As part of the collaboration, D-Wave will provide researchers with access to its superconducting dual-rail gate-model quantum computing resources through the subsidiary. The award also moves ERASE into the second phase of the NQVL program.

Researchers participating in ERASE will be able to explore new software, compilers and error-correction approaches on D-Wave's platform via selected development interfaces and APIs. At the same time, the project will also broaden workforce development efforts with academic and industry partners, helping expand the talent pipeline for quantum technologies.

The latest NSF-funded project builds on growing U.S. government support for D-Wave's quantum computing technologies. In May, the company announced it had signed a Letter of Intent for $100 million of proposed funding under the U.S. CHIPS and Science Act to accelerate the development and scaling of its annealing and gate-model quantum computing systems.

Recent Developments Among QBTS PeersIBM (IBM - Free Report) introduced the world’s first sub-1 nanometer (nm) chip technology, featuring a breakthrough transistor architecture at the 0.7 nm, or 7 angstrom node. The development marks a major milestone for an industry facing the physical limits of traditional chip scaling. IBM’s new sub-1 nm chip packs nearly 100 billion transistors onto a chip the size of a fingernail, nearly twice the density of IBM’s 2 nm chip, unveiled in 2021.

IonQ (IONQ - Free Report) recently unveiled Clavis XG Multiplex, a new addition to its Clavis XG Quantum Key Distribution portfolio, designed to make quantum security even more practical and deployable across metropolitan fiber networks. The Clavis XG product line stands out for its enterprise???grade network integration, offering benefits in form factor and maintenance to configuration and management. IonQ also recently opened a new laboratory suite in Boulder, CO, to support quantum computing R&D and semiconductor chip testing facilities.

The Zacks Rundown for QBTS StockYear to date, QBTS shares have dropped 8.3% compared with the industry’s 14.3% decline. 

Image Source: Zacks Investment Research

D-Wave is trading at a forward, three-year Price/Sales (P/S) of 134.69X, significantly higher than its 75.49X median and the industry average of 3.62X.

Image Source: Zacks Investment Research

Take a look at how estimates for D-Wave’s 2026 and 2027 earnings are shaping up.

Image Source: Zacks Investment Research

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

Key Takeaways Sandisk's QLC SSD expansion strengthens its AI storage portfolio alongside existing TLC offerings.SNDK aims to address both performance-focused and capacity-focused AI workloads with complementary SSDs.Sandisk's multiyear supply agreements provide stronger visibility into future enterprise storage demand. Sandisk Corporation (SNDK - Free Report) is expanding its Quad Level Cell (QLC) Solid State Drive (SSD) portfolio, which is expected to strengthen its position in the fast-growing AI storage market and support long-term growth. The upcoming Stargate QLC enterprise SSDs will add to the company's data center storage lineup, complementing its existing TLC based enterprise SSDs. By offering high-capacity and cost-efficient storage for AI inference and enterprise workloads, the QLC portfolio should help Sandisk expand its opportunity in hyperscale data centers.

The company continues to build on its BiCS8 NAND platform, which supports both TLC and QLC SSDs. Growing AI inference and enterprise workloads are increasing demand for higher-density flash storage solutions that balance performance with cost efficiency. This shift favors wider QLC adoption, and Sandisk's growing list of enterprise SSD qualifications across cloud customers positions SNDK to capitalize on this trend. Having both TLC and QLC products also allows the company to serve performance-heavy and capacity-heavy AI workloads at the same time.

Financial performance already reflects this momentum. Data center revenues rose 233% sequentially in the fiscal third quarter to $1.47 billion, helping drive total revenue growth of 97% sequentially to $5.95 billion. Sandisk has also signed five multiyear supply agreements covering more than one-third of its expected fiscal 2027 bit shipments, giving it stronger visibility into future demand. The expanding QLC SSD portfolio, supported by long-term customer commitments and increasing AI storage demand, is expected to remain an important driver of Sandisk's growth over the next few years.

How SNDK's Rivals Stack UpSandisk competes with Micron Technology (MU - Free Report) and Seagate Technology (STX - Free Report) in the enterprise SSD market, where demand for high-capacity flash storage continues to rise. Micron is expanding its enterprise SSD portfolio with advanced NAND technology, while Seagate continues to enhance its NVMe SSD offerings for enterprise and cloud customers.

However, Sandisk's expanding QLC SSD portfolio, supported by its BiCS8 NAND platform, provides a differentiated offering. As Micron and Seagate continue investing in enterprise SSD solutions, Sandisk's complementary TLC and QLC SSD lineup positions it well to address evolving storage needs. Growing adoption of QLC SSDs will remain a key area of competition among Micron, Seagate and Sandisk.

SNDK’s Share Price Performance, Valuation & EstimatesSandisk shares have skyrocketed 857.8% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s return of 15.7%.

SNDK Stock Outperforms Sector
Image Source: Zacks Investment Research

SNDK stock is trading at a forward 12-month price/sales of 17.28X compared with the Zacks Computer-Storage Devices’ 6.56X. Sandisk has a Value Score of F.

SNDK’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $64.01 per share, up by a penny over the past 30 days. Sandisk reported earnings of $1.78 per share in fiscal 2025.

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

SpaceX stock SPCX fell sharply on Wednesday as investors continued to navigate volatile post-IPO trading.

Shares of Elon Musk's space and artificial intelligence company dropped more than 6% to $159.95 in early trading.

The decline came amid broader weakness in technology and semiconductor stocks.

The Nasdaq Composite fell 0.4%, while the S&P 500 slipped 0.1%. The Dow Jones Industrial Average rose 88 points.

Among other technology names, Micron fell 6%, Sandisk dropped 8%, Nvidia lost roughly 2%, and Broadcom declined about 1%.

The pullback highlights the ongoing debate over SpaceX's valuation following its blockbuster public market debut.

With the stock experiencing significant swings since listing, investors are increasingly looking to analyst assessments for clues about how much upside remains after the company's rapid ascent.

On Tuesday evening, Wedbush analyst Dan Ives initiated coverage of SpaceX with an outperform rating and a $190 price target.

"We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity, Starship launches leading to a demand flywheel, and increasing deal flow for its Colossus [AI data centers]," Ives wrote.

According to Ives, Starship remains central to the company's long-term growth strategy.

The analyst argued that the next-generation launch vehicle could reduce the cost of reaching space by roughly 90% compared with Falcon 9 missions, potentially enabling a broader range of commercial opportunities, including orbital AI data centers.

"All of SpaceX's future business runs through Starship, whether it's Starlink's next-generation [satellites], the orbital AI-compute constellation, the Artemis lunar lander, or the cost-and-capacity step the whole forward [valuation] case assumes," Ives wrote.

"The vehicle is the single largest source of value in the franchise as much as its largest risk."

Ives based his valuation on a sum-of-the-parts framework that separately assesses the company's launch, satellite internet, and artificial intelligence businesses.

Under that approach, he values SpaceX's launch operations at approximately $66 billion and Starlink at roughly $600 billion.

The largest component of the valuation is the company's artificial intelligence business, which Ives estimates is worth approximately $1.8 trillion.

He expects AI-related operations to generate more than $80 billion in revenue by 2028, before any contribution from potential orbital AI data centers.

The analysis places significant emphasis on SpaceX's expanding AI ambitions alongside its traditional aerospace operations.

Separately, SpaceX is set to become one of the fastest companies ever added to the Nasdaq-100 index following recent rule changes adopted by Nasdaq.

Nasdaq announced after last Friday's close that SpaceX qualifies for inclusion in the benchmark technology index.

Assuming the company continues to meet eligibility requirements, index-tracking funds and related investment products will begin purchasing shares after the market closes on July 6, with SpaceX officially joining the Nasdaq-100 before trading begins on July 7.

More than $800 billion tracks the Nasdaq-100, including the Invesco QQQ Trust, one of the largest and most actively traded exchange-traded funds.

SpaceX is expected to enter the index with a weighting of less than 1%.

Even with a relatively small weighting, inclusion could create meaningful buying demand because SpaceX's public float remains limited compared with its overall market capitalization.

Index funds and exchange-traded funds tied to the Nasdaq-100 will need to acquire shares to reflect the benchmark's revised composition, while active managers benchmarked against the index may also adjust positions.

Wedbush has initiated coverage of SpaceX Corp (NASDAQ:SPCX) with an 'outperform' rating and a $190 price target, implying 16% upside from Tuesday's close of $163.33, arguing the company is becoming a hyperscaler in its own right rather than just a rocket company.

Dan Ives and his team frame SpaceX as three vertically integrated businesses: Starlink connectivity, Starship launch, and an AI segment built around Colossus compute clusters and the Grok model.

Starlink is doing the heavy lifting on profitability, with roughly 12 million subscribers as of June 5 and average revenue per user of about $66 across its enterprise and consumer base. Wedbush estimates SpaceX still holds less than 1% of the global telecom and broadband market, leaving what it calls "early innings" of penetration.

Capital keeps flowing

The analysts point to SpaceX's roughly $86bn IPO haul, about a fifth of which is earmarked for AI infrastructure, as sufficient funding for the near term while the company works through its debt. Wedbush expects further financing to follow given the scale of the AI ambitions.

Starship as the swing factor

Reusability remains the strategic edge, according to the note, cutting hardware costs while building a flywheel that improves flight rates without a corresponding jump in capital spending. The new Starship models are expected to carry around 60 Starlink satellites per launch, more than double the 27 carried by Falcon 9, which the analysts argue makes the rocket essential not just to the launch business but to the broadband and orbital compute ambitions layered on top of it.

Where the valuation comes from

Wedbush's $190 target is built on a sum-of-the-parts valuation using FY28 estimates, implying roughly $2.48 trillion of enterprise value.

Connectivity is valued at 17 times revenue given its high-margin, recurring subscriber base; AI and compute carry the richest multiple at 22 times, reflecting a contracted compute book with Anthropic, Google, and Reflection AI worth an annualised run rate of roughly $28bn; and Space carries the lowest multiple at 9 times given its capital intensity and lumpier earnings profile.

The analysts are explicit that this excludes several potential upside drivers, including sub-$200 per kilogram launch economics, orbital data centres, and enterprise AI monetisation, all of which they see as optionality rather than base-case value given the execution hurdles still ahead, including Starship's need to demonstrate orbital delivery, upper-stage catch and in-orbit propellant transfer.

Wedbush's bull case puts the target at $235, its bear case at $135.

A woman walks by the Meta Lab in Los Angeles, California, U.S., May 20, 2026. REUTERS/Daniel Cole/File Photo Purchase Licensing Rights, opens new tab

July 1 (Reuters) - Meta said on Wednesday its chief marketing officer Alex Schultz will become the company's first ​chief data officer, to better manage AI ‌analytics globally.

The Facebook-parent also promoted its vice president of consumer marketing and growth, Denise Moreno, to marketing chief.

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"My focus ​in this new role will be helping ​transform how Meta learns and makes decisions in ⁠the AI era," Schultz said in a LinkedIn ​post, opens new tab.

The leadership changes signal at Meta's move to deepen ​its focus on data-driven decision-making and AI integration across its operations.

Schultz joined the company in 2007 and held responsibilities across ​various domains like developing Meta's brand strategy ​and WhatsApp privacy campaigns, according to his LinkedIn page.

Shares of Meta ‌were ⁠up 10% after Bloomberg News reported earlier on Wednesday that the company is building a cloud business to sell excess AI computing capacity.

A 17-year veteran ​at Meta, Moreno ​began her ⁠career managing email marketing and growth experiments, she said, opens new tab in a separate post.

Axios ​first reported about Meta naming Schultz as ​its ⁠chief data officer and elevating Moreno as CMO.

Meta is projected to spend as much as $145 billion on ⁠AI ​infrastructure this year, a significant ​portion of Big Tech's more than $700 billion outlay on the technology.

Reporting ​by Jaspreet Singh in Bengaluru; Editing by Joyjeet Das

Our Standards: The Thomson Reuters Trust Principles., opens new tab

by Lisa Stiffler on Jul 1, 2026 at 9:00 amJuly 1, 2026 at 7:53 am

Wind Wall, a wind farm in California’s Tehachapi Mountains, produces renewable energy for Amazon Web Services. (Amazon Photo) Amazon’s carbon footprint jumped 16% last year after several years of little or no increase. The company emitted nearly 80.9 million metric tons of carbon dioxide equivalent in 2025. By comparison, that’s slightly higher than the nation of New Zealand’s emissions.

Amazon disclosed its climate-related data in its most comprehensive sustainability report to date, which includes a breakdown of its carbon sources, water use and other environmental impacts.

Not surprisingly, energy use showed the biggest rate of increase in the 2025 carbon tally as Amazon and other tech companies are working to rapidly expand their data center capacity to meet AI computing demand.

For the first time since 2019, the company also reported an uptick in its “carbon intensity” — a measure of how much carbon was emitted relative to each dollar of revenue. Amazon has promoted this metric as a sign that it can decouple its growth from its climate impacts.

*Million of metric tons carbon dioxide equivalent. † Grams of carbon dioxide equivalent per dollar of revenue. ‡ Carbon emissions for 2025 were calculated using a market-based method, including the application of Environmental Attribute Credits (EACs). (2025 Amazon Sustainability Report) Despite emissions moving in the wrong direction and ongoing data center-driven challenges, the Seattle-area company remains committed to its pledge of net-zero carbon emissions by 2040.

When it comes to that goal, “I remain confident and optimistic in the overarching vision and the long-term progress we continue to make toward it,” said Kara Hurst, Amazon’s chief sustainability officer, in the foreword to the company’s annual report.

The report highlights areas of success that include:

Data center efficiency: Amazon’s data centers are 9% more efficient than the public cloud average and 30% more efficient than on-premises data centers at directing energy toward computing rather than cooling, lighting or overhead. Data center water use: Amazon is seven times more efficient in its water use than the industry average thanks to its use of air cooling at most sites, most of the year. 100% clean energy overall: For the third year running, Amazon matched its company-wide electricity use with an equivalent volume of purchased clean energy, although it technically still draws on fossil fuels for some of its energy. Electric vehicle fleet: It has the largest corporate EV fleet in North America, with more than 52,700 delivery vans worldwide. It’s halfway to meeting its 2030 goal of 100,000 EVs. The company also reported improvements in reducing packaging and plastic use in delivered items; increasing use of low-carbon building materials in data center construction; and progress toward becoming water positive at its data centers, meaning it aims to replenish more water to communities than it uses.

The Amazon-backed Climate Pledge — an effort to get other organizations to commit to net-zero carbon emissions by 2040 — has grown to 656 signatories after adding 107 companies this year. It marks a notable increase at a time when companies are growing quieter about climate commitments, with some stepping back from earlier goals.

But the surge in data center investment shows little sign of slowing, which will keep complicating Amazon’s path to lower emissions. CEO Andy Jassy said Amazon expects to spend a record $200 billion in capital expenditures this year, including “AI, chips, robotics, and low-Earth orbit satellites.”

Not all reactions to that buildout have been positive — even within the company. Members of Amazon Employees for Climate Justice this month testified before the Seattle City Council in favor of data center requirements for renewable energy and labor protections, though Amazon doesn’t operate any data centers within city limits.

In the report, Amazon CSO Hurst acknowledged that AI-fueled advances could catalyze sustainability solutions or slow progress toward climate goals.

“But what alternative do we have,” she said, “but to continue to invest, learn, and move forward to try to solve one of the world’s most challenging issues?”

The agreement aims to increase the adoption of AI-powered tools across the business while strengthening Haleon’s digital infrastructure with advanced security, identity, and agentic AI capabilities.

AI Collaboration Targets Productivity And Business TransformationThe partnership builds on Haleon’s existing use of Microsoft 365 Copilot and helps employees automate repetitive tasks, improve collaboration, and dedicate more time to higher-value work.

The companies also plan to jointly develop AI applications across several key business functions, including consumer insights, innovation, supply chain management, and commercial execution.

Haleon expects these initiatives to support faster scientific research, speed up clinical content development, improve marketing personalization, and strengthen forecasting and business decision-making.

Focus On Consumer Insights And Operational EfficiencyAccording to the company, expanding its AI capabilities will provide deeper insights into changing consumer preferences while helping accelerate product innovation and streamline operations from manufacturing through commercial activities.

Haleon said it intends to use the technology investments to respond more quickly to growing consumer demand, deliver more personalized health products, and improve product availability across global markets.

The company added that these efforts support its broader objective of reaching one billion more consumers by 2030 while delivering industry-leading shareholder returns.

Azure, Copilot And Agentic AI Form Core Of StrategyAs part of the agreement, Haleon will continue using Microsoft Azure as its primary cloud platform and Microsoft Copilot as a foundation for its enterprise AI initiatives.

The company said Azure’s scalable infrastructure, analytics capabilities, and enterprise-grade security features will help protect data, systems, and AI-powered workflows as it expands AI deployment responsibly and securely.

Haleon also plans to advance its use of next-generation agentic AI, enabling intelligent digital agents that can assist teams in identifying opportunities sooner, responding more quickly to changing conditions, and supporting better outcomes for consumers, customers, and healthcare professionals.

The company said the collaboration aligns with its ambition to build an AI-powered, decision-intelligent enterprise where data and insights enable faster, smarter, and more consumer-focused decision-making.

HLN Price Action: Haleon shares were up 0.48% at $9.37 at the time of publication on Wednesday, according to Benzinga Pro data.

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I bought NVIDIA again last Friday, and I plan to buy it again this week if the selloff holds. That makes five additions in eight weeks for me, and the case for the next one has only gotten stronger. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is down 13% in June and 7.55% over the past month, sitting at $194.97 while the company is printing the strongest fundamentals it has ever produced. That gap is why my finger keeps finding the buy button.

The thesis is simple. I am buying the only company selling the picks and shovels for what Jensen Huang calls “the largest infrastructure expansion in human history.” The institutional rotation out of semiconductors leaves NVIDIA’s business intact while lowering the price I pay to own it.

The Numbers That Keep Me Adding Start with Q1 FY2027. Revenue came in at $81.615 billion, up 85.23% year over year, beating consensus by 3.16%. Non-GAAP EPS landed at $1.87 versus the $1.7738 estimate, the fourth consecutive earnings beat. Net income grew 210.63% YoY to $58.321 billion. Free cash flow hit $48.554 billion, up 85.41%. Non-GAAP gross margin held at 75.0%, versus 60.8% a year ago. Those are platform margins, and they are widening.

Growth is accelerating. Quarterly revenue growth moved from 55.6% to 62.5% to 73.2% to 85.2% across the last four quarters. Forward guidance calls for $91.0 billion in Q2 revenue, and that number assumes zero Data Center compute revenue from China.

Then there is the capital return. The board raised the quarterly dividend from $0.01 to $0.25 per share and approved an additional $80.0 billion buyback authorization on top of $38.5 billion still outstanding. NVIDIA returned roughly $20.0 billion to shareholders in Q1 alone. At a forward P/E of 22 with revenue compounding above 80%, that math works for me.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

The Moat I Cannot Find Anywhere Else NVIDIA has Meta committed to millions of Blackwell and Rubin GPUs, OpenAI signed up for at least 10 gigawatts of NVIDIA systems, Anthropic at 1 gigawatt, and CoreWeave building 5+ gigawatts of AI factories by 2030. Data Center networking revenue grew 199% YoY, proof that the full-stack platform is being adopted alongside the GPUs. The $119.0 billion in supply commitments tells me management sees demand years out.

The Risk I Refuse to Ignore China is gone from the Q2 outlook. Zero Data Center compute revenue assumed, against $4.6 billion in H20 shipments in the year-ago quarter. Insiders also sold heavily in June, including coordinated dispositions by CEO Jensen Huang, CFO Colette Kress, and three other executives at $207.41 on June 17. I sat with both facts. The China hole is real, and the company guided to $91 billion anyway. The insider sales follow pre-set 10b5-1 plans at prices above where I am buying today. The thesis holds.

Why the Buy Button Stays Active The five-year return on NVIDIA is 878.06%. The ten-year is 16,943.1%. Those are history. I am buying the cash flows underneath them at a forward multiple of 22, with a 25x dividend hike fresh in the account and an $80 billion buyback at my back. The rotation handed me a price. I intend to use every dollar of it.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Key Takeaways Johnson & Johnson's Darzalex, Tremfya and Erleada should drive Innovative Medicine growth. JNJ faces steeper Stelara biosimilar pressure and continued weakness in Imbruvica sales. Investors await updates on Icotyde, Inlexzo and Imaavy sales and commercialization plans. Johnson & Johnson (JNJ - Free Report) , through its Innovative Medicine segment, commercializes multiple blockbuster therapies spanning a wide range of disease areas, such as neuroscience, cardiovascular and metabolic disorders, immunology, oncology, pulmonary hypertension (PH), and infectious diseases. The company is set to announce its second-quarter 2026 results on July 15, and investors will be closely watching the performance of the Innovative Medicine segment.

Below, we highlight some key factors that may have influenced the segment’s sales during the quarter.

J&J’s Innovative Medicine unit is showing a growth trend, despite the loss of exclusivity (LOE) of the blockbuster drug, Stelara. The segment has recorded four consecutive quarters of sales of more than $15 billion despite the Stelara LOE, a trend likely to have continued in the second quarter of 2026.

J&J expects growth in the second quarter to be driven by higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains.

Other products like Uptravi and Opsumit are likely to have witnessed continued growth.

New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato are also likely to have contributed to top-line growth. However, sales of Xarelto, Simponi/Simponi Aria and Remicade declined in the first quarter, a trend likely to have continued in the second quarter.

Also, generic/biosimilar competition for key drug, Stelara, and lower sales of Imbruvica are likely to have hurt top-line growth.

Several biosimilar versions of Stelara were launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 9.2% in the first quarter.  We expect the negative impact to be steeper in the second quarter of 2026.

Imbruvica sales are likely to have declined due to rising competitive pressure in the United States due to new oral competition.

Investors will look for initial sales numbers and commercialization plans of J&J’snewly launched oral pill for plaque psoriasis, Icotyde, which was approved by the FDA in March 2026.

Investors will also be keen to know how J&J’s other new drugs approved last year performed. These products are Inlexzoh, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis.

Inlexzo generated sales of slightly above $30 million in the first quarter. J&J received a permanent J-code for Inlexzo reimbursement in April, which should have boosted patient access and sales for the therapy in the second quarter. J&J did not separately disclose sales of Imaavy in the first quarter results. It remains to be seen if it does so in the second quarter.

J&J Key CompetitorsImmunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen, Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.

JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 24.1% in the past year compared with 14.5% appreciation of the industry. 

Image Source: Zacks Investment Research

From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.02 forward earnings, higher than 19.02 for the industry. The stock is also trading above its five-year mean of 15.65.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings has been stable at $11.57 per share over the past 60 days, while that for 2027 earnings has gone up from $12.58 per share to $12.60 over the same time frame.

Image Source: Zacks Investment Research

J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DETROIT — General Motors' second-quarter U.S. sales fell 4.2% as year-over-year demand for its all-electric vehicles and Chevrolet Silverado pickup trucks declined.

The Detroit automaker reported that it sold 714,896 vehicles from April through June, down from 746,588 units during the second quarter of 2025. Its sales through the first half of the year were 1.3 million, down 6.8% compared with a year ago.

The second quarter sales were slightly better than a forecast last week by Cox Automotive, which expected GM's sales to decline 7.2% through the first half of the year, including a 5.1% fall during the second quarter.

"Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs. The depth, breadth and appeal of our vehicle portfolio allows us to lead the market in sales, while maintaining discipline on inventory, pricing and incentives to deliver strong margins," GM North America President Duncan Aldred said in a release.

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The Detroit automaker is expected to underperform the U.S. auto industry during the second quarter, which forecasters Cox Automotive and J.D. Power expect to be roughly level compared to a year earlier. Cox forecast industry sales to be off 0.5%, while JDP expected a 0.7% increase in vehicles sold.

GM's EV sales during the second quarter were off 33% compared to last year, when demand for all-electric vehicles began to surge ahead of expectations of the Trump administration ending up to $7,500 in incentives for consumers to purchase an EV.

GM said that despite a 7.7% decline in its Silverado pickups for the quarter, including a 25.9% drop for its electric truck, the company still expects to have gained market share in the full-size truck segment during the period.

Its GMC Sierra pickup trucks did better, with a 5% increase in sales, including double-digit increases for its electric and light-duty 1500 models amid tough comparisons. GM recorded its best combined sales of Silverado and Sierra full-size pickup trucks in 20 years in 2025, leading to a sixth straight year of leading that highly profitable U.S. segment.

Each off GM's brands saw year-over-year sales declines during the second quarter, led by a 19.2% decline in Cadillac. Buick was down 7.5%, Chevrolet fell 3.9% and GMC reported a 0.3% decline.

Read more CNBC auto newsCarvana's new vehicle strategy turns dealership into 'playground,' test-drive center with sales all onlineLucid to lay off roughly 18% of U.S. workforce, COO Marc Winterhoff leavesRivian laying off hundreds of workers amid R2 launch

Key Takeaways RCL opened Royal Beach Club Santorini, where strong demand supports its destination-led strategy.RCL expects Cozumel in early 2028, with Perfect Day Mexico and Costa Maya due in late 2027.RCL expects Perfect Day Mexico, Royal Beach Club Cozumel and Icon-class ships to strengthen Galveston demand. Royal Caribbean Cruises Ltd. (RCL - Free Report) is expanding its private-destination portfolio as part of a broader effort to support multi-year yield growth through differentiated vacation experiences. The strategy can strengthen itinerary appeal across key cruise markets and support pricing power over time.

Following the launch of Royal Beach Club Paradise Island, RCL recently opened Royal Beach Club Santorini, a core element of its “ultimate Santorini Day” experience. Strong demand for the beach club underscores the value of proprietary destinations in enhancing the company’s vacation offering and reinforcing its competitive positioning.

The next phase of the pipeline is concentrated in the Caribbean and Mexico. Royal Beach Club Cozumel is expected to open in early 2028, while Perfect Day Mexico and Costa Maya are expected to open in late 2027 and ramp in early 2028. These projects are expected to further differentiate RCL’s itinerary portfolio and contribute to yield growth over time.

Perfect Day Mexico also gives RCL a larger opportunity in the Gulf and Texas markets. The project, together with Royal Beach Club Cozumel and Icon-class ships, is expected to strengthen the company’s position in Galveston and expand its reach across drivable markets. Texas remains underpenetrated relative to Florida, giving RCL room to build demand over time.

Royal Caribbean’s ability to extend this momentum will likely depend on whether its private destinations can support stronger guest demand and improve monetization as new assets open and ramp. If the portfolio scales successfully, destination-led differentiation could become a meaningful driver of RCL’s multi-year yield growth.

How RCL’s Destination Strategy Compares With PeersCarnival Corporation Ltd. (CCL - Free Report) is building its destination strategy around scale, capacity and itinerary differentiation. The company has enhanced Celebration Key’s capacity profile through a pier expansion, enabling the destination to accommodate up to four ships and more than 13,000 guests per day. RelaxAway, Half Moon Cay can accommodate two of CCL’s largest ships at the same time. Together, these assets allow CCL to offer two differentiated beach experiences within a single itinerary, strengthening its Caribbean value proposition.

CCL’s strategy also extends beyond individual destinations. Its Paradise Collection is expected to welcome more than 9 million guest visits next year. About 85% of CCL’s Caribbean itineraries are expected to include at least one exclusive destination, while nearly half are expected to include two or more of these destinations on the same sailing. The company is also leveraging Isla Tropicale in Roatán, Puerta Maya in Cozumel and its integrated Alaska land-and-sea platform, creating a broad destination footprint across both beach and experiential cruise markets.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is pursuing a more focused destination upgrade strategy through Great Stirrup Cay. Great Tides Waterpark is expected to enhance the island’s offering, improve the guest experience and become a demand driver moving into 2027. NCLH also expects fourth-quarter net yields to improve from the third quarter, partly supported by the waterpark opening by the end of the third quarter.

Against this backdrop, RCL’s private-destination strategy remains highly relevant but increasingly competitive. CCL is using scale and destination density to strengthen Caribbean itinerary appeal, while NCLH is upgrading Great Stirrup Cay to support demand and yield improvement. For RCL, Royal Beach Club Cozumel, Perfect Day Mexico, Costa Maya and its beach-club platform will likely be important in sustaining itinerary differentiation, pricing power and multi-year yield growth.

RCL’s Price Performance, Valuation & EstimatesShares of Royal Caribbean have gained 16.1% in the past three months compared with the industry’s 13.9% growth.

RCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, RCL trades at a forward price-to-earnings (P/E) ratio of 17.11, below the industry’s average of 17.22.

RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.4%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of RCL Stock
Image Source: Zacks Investment Research

RCL’s Zacks RankRCL stock currently has a Zacks Rank #4 (Sell).

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

General Mills, Inc. (GIS) Q4 2026 Earnings Call July 1, 2026 9:00 AM EDT

Company Participants

Jeff Siemon - Vice President of Investor Relations & Treasurer
Jeffrey Harmening - Chairman & CEO
Dana McNabb - COO, Group President of North America Retail & North America Pet and Director
Kofi Bruce - Chief Financial Officer

Conference Call Participants

Max Andrew Gumport - BNP Paribas, Research Division
Peter Grom - UBS Investment Bank, Research Division
Andrew Lazar - Barclays Bank PLC, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Peter Galbo - BofA Securities, Research Division
Matthew Smith - Stifel, Nicolaus & Company, Incorporated, Research Division
Christopher Carey - Wells Fargo Securities, LLC, Research Division
Robert Dickerson - BTIG, LLC, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to General Mills Fiscal 2026 Q4 Earnings Call. [Operator Instructions]

I will now hand the conference over to Jeff Siemon, Vice President, Investor Relations and Corporate Finance. Jeff, please go ahead.

Jeff Siemon
Vice President of Investor Relations & Treasurer

Thank you, Samantha, and good morning to everyone. Thanks for joining us today for our live Q&A session on our Q4 and full year fiscal '26 results. I hope you all had time to review our press release, listen to the prepared remarks and view our presentation materials, which we made available this morning on our Investor Relations website.

It's important to note that in our Q&A session, we may make forward-looking statements that are based on management's current views and assumptions. So please refer to this morning's press release for factors that could impact forward-looking statements and for reconciliations of non-GAAP information, which may be discussed on today's call.

I'm here with Jeff Harmening, our Chairman and CEO; Dana McNabb, our COO; and Kofi Bruce, our CFO.

watch now

Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyrocket.

"I'm not throwing shade at them, but something has gone completely wrong," he told CNBC's "Squawk Box." "The basic view among enterprises in this country is I'm going to chillax and waste my time with tokens."

As AI costs surge, and new models prove pricier than previous iterations, enterprises are shifting from a mindset of so-called "tokenmaxxing" in favor of a return on investment.

That setup is prompting some enterprises to adopt open weight models, capable of performing similar tasks at a fraction of the price. Chinese models are also accelerating capabilities, raising concerns that the AI rival could soon catch up to U.S. frontier labs.

Shares of the AI software company climbed 9% on Wednesday.

Read more CNBC tech newsAnthropic says Trump admin has lifted export controls on Claude Fable 5 and Mythos 5OpenAI, Anthropic backer MGX raises one of the biggest AI funds ever as it closes at $49 billionEmployers who laid off workers citing AI are already starting to regret itRecord chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarterKarp told CNBC that the industry should not underestimate the speed at which China is making progress in building AI models.

In this environment, many businesses are also shifting from using far-reaching AI models to building and training their own, more efficient proprietary tools.

Earlier this week, Palantir announced an expanded partnership with Nvidia to use the chipmaking giant's AI tools to build custom models for U.S. government agencies.

Karp views open weight models as a potential solution for CEOs frustrated by AI labs.

"What aligns me with Nvidia, and I think is what the technical customers want, which is control over their compute, their models, their data stack and their alpha," Karp said. "They want to know they own the means of production. It's not being transferred to someone else."

— CNBC's Seema Mody contributed to this story.

Key Takeaways Etsy's marketplace GMS rose 5.5% year over year to $2.5B, improving 540 basis points from Q4.Active buyers grew sequentially for the first time in two years, with GMS per buyer rising to $122.Etsy expects marketplace GMS to grow every quarter of 2026 and full-year growth in the low single digits. Etsy, Inc. (ETSY - Free Report) entered 2026 with renewed momentum, but the bigger question is whether its marketplace gross merchandise sales (GMS) growth can remain sustainable through the rest of the year. The first quarter offered encouraging evidence that the company is rebuilding the marketplace on stronger operating fundamentals rather than relying solely on temporary tailwinds.

Marketplace GMS increased 5.5% year over year to $2.5 billion, with the growth rate improving 540 basis points from the fourth quarter. Management said progress in product development and marketing is translating into improvements across marketplace fundamentals, while foreign exchange tailwinds and a softer prior-year comparison also supported the performance.

What makes the current recovery more meaningful is the shift in customer behavior. Active buyers posted sequential growth for the first time in two years, new buyers and active sellers increased year over year, while GMS per active buyer rose for the first time since late 2022, reaching $122 on a trailing 12-month basis. Etsy's mobile app continues to play a central role, with app GMS increasing 11.2% year over year and accounting for roughly 47% of marketplace GMS. Management said the momentum reflects continued investments in machine learning, personalization and improved product discovery.

Management expects some first-quarter benefits, including foreign exchange tailwinds and tariff-related average order value increases, to moderate as the year progresses. Even so, it expects continued progress in product discovery, personalization and customer engagement initiatives to further strengthen marketplace fundamentals through the remainder of 2026.

During the earnings call, management reiterated its expectation for year-over-year marketplace GMS growth in every quarter of 2026 and forecast full-year growth in the low single digits. ETSY guided second-quarter marketplace GMS to be between $2.48 billion and $2.53 billion, implying 3% to 5% year-over-year growth.

How eBay & Shopify Compare With Etsy on Marketplace GrowtheBay Inc. (EBAY - Free Report) also delivered a strong marketplace performance in the first quarter of 2026, with gross merchandise volume (GMV) rising 14% year over year to $22.2 billion. eBay said growth was broad-based across major categories, supported by faster momentum in collectibles, motors, electronics and fashion, while AI-powered seller tools, Live commerce and consumer-to-consumer initiatives continued to improve marketplace engagement. Management expects eBay's GMV growth to moderate in the second quarter as some category-specific tailwinds ease, but reaffirmed confidence in sustained marketplace momentum through the remainder of 2026.

Shopify Inc. (SHOP - Free Report) also continued to deliver healthy marketplace expansion, with first-quarter 2026 GMV increasing 35% year over year to $101 billion. Shopify attributed the performance to balanced growth across merchant sizes, geographies and sales channels, while AI capabilities such as Sidekick and integrations with ChatGPT, Microsoft Copilot and Google continued to support merchant growth. Management highlighted accelerating online, offline and B2B commerce trends and expects Shopify to maintain strong momentum, supported by continued investments. The consistent GMV growth underscores Shopify's ability to scale merchant sales despite an evolving commerce landscape.

What the Latest Metrics Say About EtsyEtsy has seen its shares jump 45.9% over the past three months compared with the industry’s 7.9% rise. 
 

Image Source: Zacks Investment Research

From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 12.35, lower than the industry’s ratio of 21.21. ETSY is also trading below its 12-month median level of 20.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Etsy's earnings per share has seen an upward revision. The consensus estimate for the current fiscal year has risen from $3.76 to $3.82, while the estimate for the next fiscal year has increased from $4.30 to $4.59 over the past 60 days.
 

Image Source: Zacks Investment Research

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

A strong stock as of late has been TSMC (TSM - Free Report) . Shares have been marching higher, with the stock up 6.9% over the past month. The stock hit a new 52-week high of $479 in the previous session. TSMC has gained 57.2% since the start of the year compared to the 18.2% move for the Zacks Computer and Technology sector and the 57.2% return for the Zacks Semiconductor - Circuit Foundry industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 16, 2026, TSMC reported EPS of $3.49 versus consensus estimate of $3.31.

For the current fiscal year, TSMC is expected to post earnings of $15.35 per share on $161.91 in revenues. This represents a 44.13% change in EPS on a 32.26% change in revenues. For the next fiscal year, the company is expected to earn $19.5 per share on $204.95 in revenues. This represents a year-over-year change of 26.98% and 26.58%, respectively.

Valuation MetricsTSMC may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

TSMC has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 31.1X. On a trailing cash flow basis, the stock currently trades at 32.1X versus its peer group's average of 32.1X. Additionally, the stock has a PEG ratio of 1.2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, TSMC currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TSMC meets the list of requirements. Thus, it seems as though TSMC shares could have potential in the weeks and months to come.

ServiceNow NOW and Salesforce shares climbed 5% on Wednesday after Guggenheim upgraded the software companies, arguing that their valuations have become attractive despite ongoing risks posed by artificial intelligence.

The upgrade comes after a difficult year for enterprise software stocks, with investors reassessing growth prospects as AI reshapes the industry.

ServiceNow shares are down 33% so far in 2026, while Salesforce has fallen 38%.

Guggenheim analyst John DiFucci upgraded ServiceNow to Buy from Neutral and assigned a $125 price target, valuing the company at 7.5 times enterprise value to next-12-month recurring revenue.

According to DiFucci, the upgrade reflects valuation rather than optimism that ServiceNow will emerge as a major AI winner.

"We believe current levels present an attractive opportunity for investors to purchase a comfortably profitable stock likely to continue to grow at double digits," DiFucci noted, citing expected improvements in the company's US federal government business.

His discussions with management suggest that ServiceNow's government-related business could improve as disruptions tied to federal spending changes and procurement delays associated with the Department of Government Efficiency begin to ease.

DiFucci also upgraded Salesforce to Buy from Neutral, saying investors have become overly pessimistic about the software company.

He described the "Armageddon scenario" reflected in Salesforce's valuation as "misaligned with reality."

Salesforce is currently trading at about 3.7 times projected enterprise value to revenue over the next 12 months, a valuation DiFucci believes is "grossly undervalued."

AI remains a risk, not a growth driverAlthough DiFucci turned more constructive on both companies, he maintained a cautious stance on artificial intelligence.

He has previously described AI as a major threat to software companies and said that view has not changed materially.

"We want to be clear that we are not upgrading shares because we see [ServiceNow] as an AI beneficiary," he wrote, adding that he believes AI monetization is "unlikely to materialize" for the company, and that the threat of artificial intelligence "does pose significant risks."

Regarding Salesforce, DiFucci also tempered expectations for future growth.

"Realistically, the company will 'struggle to grow much, but does not decline much either,'" he said. "This is not a call that [Salesforce] will be a beneficiary of AI, but we don't believe it will decline as implied in the current valuation."

The brokerage also pointed to ongoing risks, including talent migration to AI-native startups and the company's reliance on acquisitions, including Armis, to support growth.

Separately, Evercore ISI reiterated its Outperform rating on ServiceNow with a $150 price target ahead of the company's second-quarter earnings report.

The brokerage said investor attention has shifted from long-term AI strategy toward execution over the coming quarters.

ServiceNow recently outlined its AI Control Tower strategy, AI-native product packaging, and a target of generating more than $30 billion in subscription revenue by fiscal 2030.

According to Evercore ISI, the company's long-term target implies subscription revenue compound annual growth of approximately 17.5% without requiring an acceleration in growth.

According to Evercore ISI, the company's long-term target implies subscription revenue compound annual growth of approximately 17.5% without requiring an acceleration in growth.

For the second quarter, ServiceNow guided current remaining performance obligations growth of about 19.5% in constant currency, including contributions from the Moveworks and Armis acquisitions.

Evercore ISI said investors will closely watch whether organic growth stabilizes as pressure in the federal government market eases and AI adoption increases.

The firm added that constant-currency growth of 20% to 20.5% would likely meet expectations, while results closer to 21% or higher could help ease concerns about slowing organic growth.

If investors hoping to find the next Tesla only glanced at Lucid (LCID +1.05%), it's easy to understand the intrigue. Lucid designed and delivered some of the most technologically advanced and efficient electric vehicles (EVs) in the world. They helped set benchmarks in range and battery efficiency, and the company strung together eight consecutive quarters of record deliveries, which ran through the end of 2025. Lucid even had an extremely wealthy backer in Saudi Arabia's Public Investment Fund (PIF), which poured billions into the young EV maker.

If investors dug deeper, they would have found just as many, or more, flaws with the company, including production hiccups, massive cash burn, and a failure to drive down vehicle unit economics. Worse yet, red flags have been popping up recently, and the situation appears increasingly dire.

What now? Last week, Lucid announced it would lay off roughly 1,500 employees, or about 18% of its current workforce. And this isn't the first recent instance. Just four months ago, Lucid cut 12% of its workforce.

Public relations can try to spin this as a smart move to make the EV maker more competitive and cost-efficient moving forward, but the truth is this is a substantial workforce slashing across multiple moves in a short four-month span.

Lucid's recent red flags don't stop with its employee cuts, either. The company also confirmed last week that it eliminated the second production shift at its Casa Grande, Arizona, factory.

There isn't much of a positive spin you can put on this, as it's simply trying to match production with lower-than-anticipated consumer demand for its vehicles and to balance inventory that had become bloated after a supplier issue slowed deliveries of the Gravity SUV. During the first quarter of 2026, the company produced 5,500 vehicles and delivered only just over 3,000, prompting it to pull its guidance and indicating it will provide more insight during the second-quarter earnings call.

Image source: Lucid.

Jumping ship? Further complicating matters is that Lucid's recent CEO is a bit of an unusual choice, and executive turnover is mounting.

Marc Winterhoff, who did an admirable job as interim CEO for over a year and was supposed to stay on as chief operating officer after the new CEO, Silvio Napoli, took over, has now left the company. In a regulatory filing, Lucid noted that it had eliminated the COO position.

Winterhoff's departure follows a slew of executive turnover. Starting from the top, founder and longtime CEO Peter Rawlinson unexpectedly resigned in February 2025, followed by chief engineer Eric Back being let go later that year. More recently, Emad Dlala resigned earlier this month, which also seemed a bit odd after receiving a promotion just a few months earlier. In total, more than a dozen top executives have left the young EV maker in the past two years.

This makes the executive turnover more curious: Napoli appears to be an unusual pick to run the EV start-up. Napoli built a career at a Swiss company, Schindler Group, a maker of elevators and escalators -- while an industry outsider, his overall experience could still be valuable to Lucid.

Today's Change

(

1.05

%) $

0.07

Current Price

$

6.76

What it all means Lucid's moves to cut workforce and overhead by the third quarter are expected to cost the company roughly $32 million in severance pay but will save about $158 million in annualized costs. No matter how you slice it, those are not a level of cost cuts that can save Lucid as it heads toward a conundrum of cutting significant workforce while also preparing for its next more affordable mass-market vehicle, the Cosmos SUV, expected to start under $50,000.

While investors believed Lucid could produce high-quality vehicles, it never delivered the financial metrics to keep them on board. Lucid's net loss in 2025 hit $2.7 billion, flat with the prior year's $2.71 billion; its operating loss widened from $2.4 billion in 2024 to $3.5 billion in 2025; and its cash burn was a staggering $3.8 billion in 2025 alone.

It's easy to root for Lucid, but it is increasingly difficult to imagine how it becomes a viable investment and much easier to see how it could speed toward bankruptcy, especially if the PIF backing were to end.

RAV4 Hybrid achieved an all-time best-ever Best-ever June sales for Lexus division 33 electrified vehicle options available between both Toyota and Lexus brands TMNA June electrified vehicle sales of 122,063, up 35.0 percent , /PRNewswire/ -- Toyota Motor North America (TMNA) today reported June 2026 U.S. sales of 212,793 vehicles, up 10.1 percent on a volume basis and up 5.7 percent on a daily selling rate (DSR) basis compared to June 2025. Sales of electrified vehicles for the month totaled 122,063, up 35.0 percent on a volume basis and up 29.6 percent on a DSR basis, representing 57.4 percent of total sales volume. 

Toyota Motor North America Reports June, Second Quarter 2026 U.S. Sales Results For the second quarter, TMNA reported sales of 673,971 vehicles, up 1.1 percent on a volume basis and up 1.1 percent on a DSR basis versus the second quarter of 2025. Sales of electrified vehicles for the second quarter totaled 383,091, up 19.5 percent on a volume basis and up 19.5 percent on a DSR basis, representing 56.8 percent of total sales volume.

Toyota division posted June sales of 183,627 vehicles, up 11.2 percent on a volume basis and up 6.8 percent on a DSR basis. For the quarter, Toyota division reported sales of 585,211 vehicles, up 2.6 percent on a volume basis and up 2.6 percent on a DSR basis.

Lexus division posted June sales of 29,166 vehicles, up 3.9 percent on a volume basis and down 0.3 percent on a DSR basis. For the quarter, Lexus division reported sales of 88,760 vehicles, down 7.5 percent on a volume basis and down 7.5 percent on a DSR basis.

"Our second-quarter results reflect continued momentum across the Toyota and Lexus lineups," said Andrew Gilleland, senior vice president, Automotive Operations Group, Toyota Motor North America. "Strong demand and disciplined inventory management have fueled consistent gains versus a year ago, and accelerating interest in our electrified vehicles—with month-over-month growth throughout the quarter—reinforces that our multi-pathway approach is resonating. Combined with our commitment to affordability and a broad range of vehicles starting under $35,000, we're well-positioned to expand access to electrification while delivering value across every powertrain."

Highlights (volume basis unless otherwise noted) 

TMNA:

Second quarter sales up 1.1 percent Second quarter electrified vehicle sales of 383,091, up 19.5 percent June sales up 10.1 percent June electrified vehicle sales of 122,063, up 35.0 percent 33 total electrified vehicles currently available in dealerships between both the Toyota and Lexus brands Among the lowest incentives among full-line manufacturers Toyota Division:

RAV4 Hybrid achieved an all-time best-ever All-time best-ever electrification mix at 61.4% Second quarter sales up 2.6 percent Second quarter electrified vehicle sales of 345,791, up 21.1 percent June sales up 11.2 percent June electrified vehicle sales of 110,627, up 38.0 percent Lexus Division:

Achieved an all-time best-ever June Second quarter sales down 7.5 percent Second quarter electrified vehicle sales of 37,300, up 6.5 percent June sales up 3.9 percent June electrified vehicle sales of 11,436, up 11.7 percent About Toyota

Toyota (NYSE:TM) has been a part of the cultural fabric in North America for nearly 70 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our more than 1,800 dealerships.

Toyota directly employs nearly 64,000 people in North America who have contributed to the design, engineering, and assembly of more than 50 million cars and trucks at our 14 manufacturing plants. In 2025, Toyota's plant in North Carolina began to assemble automotive batteries for electrified vehicles.

For more information about Toyota, visit www.ToyotaNewsroom.com.

Media contact:
Derrick Brown
[email protected]

TOYOTA  U.S. SALES SUMMARY

June 2026

-- CURRENT MONTH --

-- CALENDAR YEAR TO DATE --     

2026

2025

DSR %

VOL %

2026

2025

DSR %

VOL %

TOTAL TMNA

212,793

193,209

5.7

10.1

1,243,391

1,236,600

0.5

0.5

TOTAL TOYOTA DIV.

183,627

165,135

6.8

11.2

1,073,679

1,057,634

1.5

1.5

TOTAL LEXUS DIV.

29,166

28,074

-0.3

3.9

169,712

178,966

-5.2

-5.2

COROLLA

19,873

18,662

2.2

6.5

131,403

120,052

9.5

9.5

SUPRA

449

308

39.9

45.8

2,116

1,231

71.9

71.9

GR86 (INCL FR-S)

754

809

-10.5

-6.8

4,007

5,427

-26.2

-26.2

MIRAI

20

7

174.3

185.7

129

46

180.4

180.4

CROWN

656

922

-31.7

-28.9

5,152

5,054

1.9

1.9

PRIUS

4,029

3,684

5.0

9.4

19,518

33,845

-42.3

-42.3

CAMRY

31,573

25,335

19.6

24.6

179,044

155,330

15.3

15.3

TOTAL TOYOTA DIV. CAR

57,354

49,727

10.7

15.3

341,371

320,987

6.4

6.4

IS

2,888

1,310

111.6

120.5

14,071

9,858

42.7

42.7

RC

3

94

-96.9

-96.8

237

805

-70.6

-70.6

ES

331

3,089

-89.7

-89.3

3,896

19,181

-79.7

-79.7

LS

1

67

-98.6

-98.5

146

691

-78.9

-78.9

LC

144

65

112.7

121.5

689

790

-12.8

-12.8

TOTAL LEXUS DIV. CAR

3,367

4,625

-30.1

-27.2

19,039

31,325

-39.2

-39.2

TOTAL TMNA CAR

60,721

54,352

7.2

11.7

360,410

352,312

2.3

2.3

C-HR BEV

1,594

0

0.0

0.0

3,748

2

187,300.0

187,300.0

BZ

1,953

1,223

53.3

59.7

17,553

9,249

89.8

89.8

BZ WOODLAND

294

0

0.0

0.0

554

0

0.0

0.0

RAV4

32,350

36,810

-15.6

-12.1

153,955

239,451

-35.7

-35.7

COROLLA CROSS

9,644

7,595

21.9

27.0

61,541

51,324

19.9

19.9

CROWN SIGNIA

1,728

1,077

54.0

60.4

11,231

12,282

-8.6

-8.6

VENZA

1

3

-68.0

-66.7

6

692

-99.1

-99.1

HIGHLANDER

3,941

5,071

-25.4

-22.3

32,059

30,056

6.7

6.7

GRAND HIGHLANDER

12,126

11,577

0.6

4.7

75,521

65,419

15.4

15.4

4RUNNER

12,981

5,754

116.6

125.6

72,320

30,013

141.0

141.0

SEQUOIA

2,457

2,126

10.9

15.6

13,939

12,222

14.0

14.0

LAND CRUISER

2,087

2,885

-30.6

-27.7

16,412

27,336

-40.0

-40.0

TOTAL TOYOTA DIV. SUV

81,156

74,121

5.1

9.5

458,840

478,046

-4.0

-4.0

SIENNA

10,641

8,345

22.4

27.5

55,252

52,762

4.7

4.7

TACOMA

23,158

21,508

3.4

7.7

143,848

130,873

9.9

9.9

TUNDRA

11,318

11,434

-5.0

-1.0

74,368

74,966

-0.8

-0.8

TOTAL TOYOTA DIV. PICKUP

34,476

32,942

0.5

4.7

218,216

205,839

6.0

6.0

TOTAL TOYOTA DIV. TRUCK

126,273

115,408

5.0

9.4

732,308

736,647

-0.6

-0.6

UX

813

664

17.5

22.4

5,382

5,001

7.6

7.6

NX

5,781

6,227

-10.9

-7.2

30,763

38,253

-19.6

-19.6

RZ

1,004

763

26.3

31.6

7,814

3,779

106.8

106.8

RX

9,836

8,108

16.5

21.3

59,904

52,888

13.3

13.3

TX

5,301

4,729

7.6

12.1

28,112

25,147

11.8

11.8

GX

2,444

2,428

-3.4

0.7

14,981

18,893

-20.7

-20.7

LX

620

530

12.3

17.0

3,717

3,680

1.0

1.0

TOTAL LEXUS DIV. TRUCK

25,799

23,449

5.6

10.0

150,673

147,641

2.1

2.1

TOTAL TMNA TRUCK

152,072

138,857

5.1

9.5

882,981

884,288

-0.1

-0.1

Selling Days

25

24

152

152

DSR = Daily Selling Rate

TOYOTA U.S. ELECTRIFIED VEHICLE SALES SUMMARY

June 2026

-- CURRENT MONTH --

-- CALENDAR YEAR TO DATE --  

2026

2025

DSR %

VOL%

2026

2025

DSR %

VOL%

TOYOTA PRIUS HYBRID

1,825

2,421

-27.6

-24.6

11,785

26,221

-55.1

-55.1

TOYOTA PRIUS PLUG-IN HYBRID

2,204

1,263

67.5

74.5

7,733

7,624

1.4

1.4

TOYOTA COROLLA HYBRID

3,157

3,288

-7.8

-4.0

23,731

27,554

-13.9

-13.9

TOYOTA CAMRY HYBRID

31,573

25,333

19.6

24.6

179,033

155,289

15.3

15.3

TOYOTA MIRAI

20

7

174.3

185.7

129

46

180.4

180.4

TOYOTA CROWN

656

922

-31.7

-28.9

5,152

5,054

1.9

1.9

TOYOTA SIENNA HYBRID

10,641

8,344

22.4

27.5

55,248

52,755

4.7

4.7

TOYOTA 4RUNNER HYBRID

3,659

1,610

118.2

127.3

17,142

5,512

211.0

211.0

TOYOTA HIGHLANDER HYBRID

2,242

2,032

5.9

10.3

22,894

15,378

48.9

48.9

TOYOTA GRAND HIGHLANDER HYBRID

6,645

5,431

17.5

22.4

44,280

31,481

40.7

40.7

TOYOTA SEQUOIA HYBRID

2,457

2,126

10.9

15.6

13,939

12,222

14.0

14.0

TOYOTA LAND CRUISER HYBRID

2,087

2,885

-30.6

-27.7

16,412

27,336

-40.0

-40.0

TOYOTA BZ BEV

1,953

1,223

53.3

59.7

17,553

9,249

89.8

89.8

TOYOTA BZ WOODLAND BEV

294

0

0.0

0.0

554

0

0.0

0.0

TOYOTA RAV4 HYBRID

27,774

14,565

83.1

90.7

118,016

95,813

23.2

23.2

TOYOTA RAV4 PLUG-IN HYBRID

4,554

633

590.7

619.4

14,775

11,357

30.1

30.1

TOYOTA COROLLA CROSS HYBRID

1,932

1,922

-3.5

0.5

8,209

17,992

-54.4

-54.4

TOYOTA CROWN SIGNIA

1,728

1,077

54.0

60.4

11,231

12,282

-8.6

-8.6

TOYOTA VENZA HYBRID

1

3

-68.0

-66.7

6

692

-99.1

-99.1

TOYOTA TACOMA HYBRID

3,030

2,573

13.1

17.8

16,446

14,282

15.2

15.2

TOYOTA TUNDRA HYBRID

2,195

2,492

-15.4

-11.9

13,891

13,430

3.4

3.4

LEXUS ES HYBRID

3

1,629

-99.8

-99.8

160

8,509

-98.1

-98.1

LEXUS UX HYBRID

813

664

17.5

22.4

5,382

5,001

7.6

7.6

LEXUS LX HYBRID

338

243

33.5

39.1

1,872

1,158

61.7

61.7

LEXUS NX HYBRID

2,515

2,668

-9.5

-5.7

15,137

15,450

-2.0

-2.0

LEXUS NX PLUG-IN HYBRID

747

380

88.7

96.6

5,813

4,230

37.4

37.4

LEXUS RZ BEV

1,004

763

26.3

31.6

7,814

3,779

106.8

106.8

LEXUS RX HYBRID

4,054

2,452

58.7

65.3

25,483

21,507

18.5

18.5

LEXUS RX PLUG-IN HYBRID

678

323

101.5

109.9

4,167

3,449

20.8

20.8

LEXUS TX HYBRID

1,086

1,028

1.4

5.6

5,623

4,364

28.8

28.8

LEXUS TX PLUG-IN HYBRID

196

85

121.4

130.6

750

427

75.6

75.6

LEXUS LS HYBRID

0

1

-100.0

-100.0

1

24

-95.8

-95.8

LEXUS LC HYBRID

2

1

92.0

100.0

5

7

-28.6

-28.6

TOTAL TMNA Electrified Vehicles

122,063

90,387

29.6

35.0

670,367

609,475

10.0

10.0

TOTAL TOYOTA Electrified Vehicles

110,627

80,150

32.5

38.0

598,160

541,570

10.4

10.4

TOTAL LEXUS Electrified Vehicles

11,436

10,237

7.2

11.7

72,207

67,905

6.3

6.3

TOTAL TMNA SALES RATIO

57.4 %

46.8 %

53.9 %

49.3 %

Selling Days

25

24

152

152

SOURCE Toyota Motor North America