Wolfe Research čeká, že Nebius Group může do konce roku 2030 dosáhnout více než 41 miliard USD ročních opakujících se tržeb, tedy téměř desetinásobku modelovaných 4,26 miliardy USD za 3. čtvrtletí 2026. Klíčem má být 5 GW smluvního výkonu a růst kapacity od roku 2027.
The AI infrastructure boom is moving into a new phase. Demand for computing power is no longer the only constraint; access to electricity, data-center capacity, and financing are becoming just as important. Customers are committing billions of dollars years ahead of delivery, while scarce power supports pricing. For investors, contracted power is becoming a financial asset as much as an operating metric.
Wolfe Research believes Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) can exit 2030 with more than $41 billion of annual recurring revenue (ARR) — nearly 10 times the $4.26 billion ARR shown for the third quarter of 2026 in its model. The thesis is aggressive, but its building blocks are visible.
Power Is Becoming Revenue Nebius just raised its year-end 2026 contracted-power target to 5 gigawatts, up from more than 4 GW. Management said it plans to deploy more than 1 GW annually beginning in 2027, and Reuters reported that the company believes it can sell its 2027 capacity at current terms.
The Wolfe model translates that power ramp into ARR growth: $6.3 billion in fiscal 2026, $13.9 billion in 2027, $22.8 billion in 2028, $31.8 billion in 2029, and $41.2 billion in 2030. That assumes Nebius can repeatedly convert electricity into revenue-producing capacity.
Forget the chips—the real AI war is being fought over electricity. With billions in upfront payments from tech titans, the race to turn raw power into revenue has officially reached a fever pitch. Customers Are Helping Fund the Buildout Nebius’ Q2 2026 shareholder letter said annual contract value per megawatt had climbed above $20 million for Q2 deals and above $40 million for short-term Q3 capacity deals. Four deals averaged more than $1 billion each, while 50% to 60% of their capex was self-financed through customer prepayments.
Nebius’ 2025 annual report provides an example. Microsoft‘s (NASDAQ:MSFT) agreement can generate as much as $17.4 billion through 2031 and includes roughly $7 billion of upfront payments. Meta Platforms‘ (NASDAQ:META) March agreement carried a potential contract value of about $27 billion.
That reduces Nebius’ financing burden while long-duration contracts provide revenue visibility.
The Margin Test Still Matters Admittedly, contracted power is not completed infrastructure. Nebius spent about $5.7 billion on capital expenditures in Q2 alone, according to its shareholder letter, while 2026 revenue guidance remains $3 billion to $3.4 billion.
The company also faces competition from Nvidia (NASDAQ:NVDA)-powered cloud providers such as CoreWeave (NASDAQ:CRWV). Nebius must turn scarce power into energized capacity quickly enough to preserve returns.
Surprisingly, its Q2 AI cloud adjusted EBITDA margin reached 50%. That gives the model some credibility, but sustaining those economics while adding more than 1 GW annually will be the key test.
Key Takeaway In short, Wolfe’s $41 billion ARR forecast is a high bar, but the math has a foundation. Nebius must convert 5 GW of contracted power into capacity, maintain pricing above $20 million per MW, and keep using customer prepayments to fund growth.
For investors, Nebius is a high-risk, high-upside AI infrastructure bet. The 10x ARR opportunity is worth watching, but the real signal will be whether margins hold as the gigawatts come online.
Contact [email protected] for any questions or corrections.
Rigetti ve 2. čtvrtletí zvýšila tržby o 185,3 % na 5,1 mil. USD, ale provozní ztráta se prohloubila na 28,1 mil. USD. Akcie RGTI se obchodují za 104,7násobek očekávaných tržeb.
Key Takeaways Rigetti's Q2 revenue rose 185.3% to $5.1M, driven mainly by 9-qubit Novera systems and related products.Operating loss widened to $28.1M as operating expenses rose 47.9% and R&D spending climbed 53.3%.RGTI trades at 104.7X forward sales, while one customer supplied 64% of Q2 revenue and another 16%. Rigetti Computing, Inc. (RGTI - Free Report) is showing measurable commercial progress as demand for its quantum systems broadens and hardware performance improves. The company is also investing aggressively to push its chiplet-based architecture toward larger systems and higher gate fidelity, a measure of operation accuracy.
That opportunity comes with a demanding valuation and an operating model that remains far from scale. For investors weighing whether to buy now or wait, commercial traction must be balanced against losses, execution risk and a premium price.
Rigetti's Sales Growth Shows Commercial TractionSecond-quarter 2026 revenues climbed 185.3% year over year to $5.1 million, driven mainly by sales of 9-qubit Novera systems and related products. The increase shows that on-premises hardware is beginning to contribute more meaningfully alongside development contracts and cloud access.
Rigetti also has an $8.4 million order from India’s Centre for Development of Advanced Computing (C-DAC) for an on-premises 108-qubit system. Management expects to recognize that revenue in the fourth quarter of 2026 after installation and performance acceptance testing, giving the company another sizable system milestone if deployment remains on schedule.
RGTI's Cost Base Still Outruns RevenueThe spending required to advance Rigetti’s roadmap remains much larger than its current revenue base. Second-quarter operating expenses rose 47.9% year over year to $30.3 million, while research and development spending increased 53.3% to $20.7 million.
Operating loss widened to $28.1 million from $19.9 million a year earlier. Management expects research and development spending to increase and 2026 capital expenditures to stay elevated as Rigetti invests in fabrication equipment, dilution refrigeration needed to cool quantum hardware and infrastructure for higher-qubit systems.
Rigetti's Liquidity Extends Its RunwayRigetti ended the second quarter with $541.3 million in cash, cash equivalents and available-for-sale investments and no debt. That liquidity gives the company room to fund work on scale, fidelity, system integration and planned infrastructure without an immediate reliance on debt financing.
The balance sheet does not remove execution risk, but it lowers near-term financing pressure while losses remain high. Rigetti can continue funding technical milestones even as commercial revenues remain tied to system deliveries and project timing.
RGTI's Valuation Leaves Little Room for MissesRGTI trades at 98.7X forward 12-month sales, far above 3.9X for its Zacks sub-industry and 5.0X for the S&P 500. One customer accounted for 64% of second-quarter revenues and another for 16%, while the prospective U.S. Department of Commerce award would involve equity issuance if finalized. That combination leaves little room for delivery or technology delays.
Image Source: Zacks Investment Research
Commercialization across quantum computing is also uneven. IonQ (IONQ - Free Report) reported second-quarter 2026 revenues of $80.1 million, showing that some peers have reached a larger revenue base. D-Wave Quantum (QBTS - Free Report) reported $3.1 million for the quarter, illustrating that revenue scale still varies widely across competing platforms.
Image Source: Zacks Investment Research
RGTI's Scores Argue for Investor PatienceThe current setup favors patience rather than chasing Rigetti’s long-term technology potential at any price. The stock carries a Zacks Rank #5 (Strong Sell), while its Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F present an unfavorable near-term combination.
Zacks Style Scores are designed to complement the Zacks Rank, not override it. Rigetti’s technical progress and system sales may improve its long-term opportunity, but the current Rank and weak Style Scores, combined with a triple-digit sales multiple and high execution demands, support a cautious wait-and-see stance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rogers Communications za poslední měsíc po posledních výsledcích přidala asi 11,3 %. Ve 2. čtvrtletí překonala odhady: upravený zisk činil 83 centů na akcii a tržby 4,06 miliardy USD.
A month has gone by since the last earnings report for Rogers Communication (RCI - Free Report) . Shares have added about 11.3% 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 Rogers Communication due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Rogers Communications Q2 Earnings Beat Estimates, Revenues Rise Y/YRogers Communications reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.
Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.
Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter.
Q2 Segmental Details of RCIWireless Details
Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.
Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.
As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.
As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.
Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion.
Cable Details
Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.
Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.
As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.
As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.
Cable segment operating costs increased 0.6% year over year to C$826 million.
Media Details
Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.
Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind.
Consolidated Results
Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.
Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%.
RCI’s Q2 Balance Sheet & Cash Flow DetailsAs of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.
Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.
Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026.
RCI Reaffirms 2026 OutlookFor 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.
Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in fresh estimates.
The consensus estimate has shifted 9.56% due to these changes.
VGM ScoresCurrently, Rogers Communication has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
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.
Outlook Rogers Communication has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Key Takeaways Kohl's Q2 revenues are expected to fall 0.9% to $3.52 billion amid cautious, value-focused spending.Weakness in Sephora, footwear and men's may have limited sales gains despite assortment changes.Cleaner inventories, proprietary-brand momentum and digital enhancements may have supported Kohl's results. Kohl's Corporation (KSS - Free Report) is likely to witness a top-line decline when it reports second-quarter fiscal 2026 earnings on Aug. 26. The Zacks Consensus Estimate for revenues is pegged at $3.52 billion, indicating a 0.9% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 56 cents per share, indicating flat year-over-year growth. KSS has a trailing four-quarter earnings surprise of 69%, on average.
Factors Likely to Influence KSS’ Q2 ResultsKohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by a challenging macroeconomic environment. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review.
Category-specific softness is also likely to have weighed on Kohl’s second-quarter performance. Sephora’s mixed performance might have remained a headwind, as the business declined low single digits in the fiscal first quarter, with weakness in makeup and skincare partly offset by strength in fragrance and hair care. Although new products and brands were being introduced and rolled out, their contribution could take time to build, limiting the benefit to sales during the quarter.
Margins are likely to have remained under pressure from Kohl’s emphasis on delivering sharper value and supporting customer engagement through promotions and coupons. Management has noted that investments in value could offset benefits from cleaner inventories and a stronger proprietary-brand mix. Higher digital penetration has also carried incremental shipping costs, while transportation expenses might have added pressure. We expect gross profit to decline 2.1% year over year and gross margin to decrease 40 basis points in the second quarter.
Despite these headwinds, Kohl’s is likely to have benefited from improving execution, proprietary-brand momentum and omnichannel initiatives. The company entered the quarter with cleaner inventories, stronger apparel depth and improved in-stock positioning, while its proprietary brands had been resonating well with value-conscious shoppers. Digital enhancements, including improved product discovery and AI-powered shopping tools, alongside improving trends among Kohl’s Card customers, are also likely to have provided some support.
Earnings Whispers for KSS StockOur proven model doesn’t conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kohl's currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $2.18, which implies 37.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $3.02 billion, which indicates 11.8% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 14%, on average.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.21 billion, which indicates an increase of 17.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.28, implying 58% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, on average.
CAVA ve 2. čtvrtletí zvýšila tržby v porovnatelných provozovnách o 9 % díky 5,3% růstu návštěvnosti. Firma potvrdila výhled na rok 2026 na 4,5 % až 6,5 %.
Key Takeaways CAVA's Q2 same-store sales rose 9%, driven by a 5.3% increase in traffic.CAVA's Q2 Same-store sales recovered to the mid-single-digit range after Cyclospora concerns pressured demand.CAVA maintained 2026 comps guidance of 4.5%-6.5%, supported by loyalty growth and menu innovation. CAVA Group, Inc. (CAVA - Free Report) reported 9% same-store sales growth in the second quarter of 2026, driven by a 5.3% increase in traffic. The traffic-led performance points to solid underlying demand, although broader food-safety concerns created a near-term sales headwind around the end of the quarter and into the third quarter. Concerns surrounding the Cyclospora outbreak affected consumer demand for lettuce and fresh produce, even though CAVA does not source leafy greens from Mexico or serve iceberg lettuce.
Recent sales trends indicate that the pressure has moderated. Same-store sales initially slowed to flat to positive as Cyclospora concerns intensified, but improved each week sequentially and most recently recovered to the mid-single-digit range. CAVA also reported no immediate impact from the recent Salmonella outbreak and does not source from the associated farms. The company continues to monitor food-safety developments through its external Food Safety Advisory Council and existing supply-chain traceability capabilities.
The full-year outlook supports continued comparable-sales growth, although at a more moderate rate than the second-quarter pace. CAVA maintained its 2026 same-store sales growth guidance of 4.5%-6.5%, incorporating the impact experienced to date and a prudent assumption regarding the duration of remaining Cyclospora-related pressure. The low end of the range would imply slightly negative same-store sales in the second half, while the upper end would imply mid-single-digit growth. The company stated that current trends do not indicate performance at the lower end of the range.
Several demand indicators provide additional support. Restaurants in lower-income markets are generating the strongest same-store sales results, while restrained menu-price increases are supporting accessibility. CAVA’s loyalty membership is growing faster than its restaurant base, and Pomegranate Glazed Salmon increased the rate of new customers while driving higher frequency among loyalty members who purchased the product. These trends indicate continued traction across value, customer engagement and menu innovation.
Broader restaurant performance also remains favorable. New restaurant productivity stayed above 100%, with strength across geographies and restaurant formats, while the 2024 cohort is generating double-digit same-store sales. These operating fundamentals support the durability of positive comparable-sales growth despite near-term food-safety concerns.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have gained 6.9% in the past year against the industry’s 6.9% decline. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) and McDonald's Corporation (MCD - Free Report) have declined 21.8% and 14.1%, respectively.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5, above the industry’s average of 3.12. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.49 and 6.55, respectively.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has declined in the past 60 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
The company is likely to report flat earnings in 2026 on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year over year in 2026 earnings.
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tržby společnosti IREN ve čtvrtletí klesly na 144,8 mil. USD, ale výnosy z AI cloudu téměř zdvojnásobily na 33,6 mil. USD. Firma míří na více než 4 mld. USD ročního opakujícího se výnosu do konce roku 2026.
Key Takeaways IREN's AI cloud revenues nearly doubled sequentially to $33.6 million in the March-end quarter.IREN targets over $4 billion in year-end 2026 annualized run-rate revenue, with about 85% contracted.IREN's Horizon 1 was accepted under Microsoft's five-year, $9.7 billion cloud services contract. IREN Limited’s (IREN - Free Report) will now report fiscal 2026 results on Aug. 27, after market close, giving investors a view of how quickly its business is shifting from Bitcoin mining toward AI cloud. The March-end quarter showed that transition clearly: revenues fell to $144.8 million, while AI cloud revenue nearly doubled sequentially to $33.6 million.
The biggest number to watch is AI cloud growth. IREN raised its year-end 2026 annualized run-rate revenue target from $3.7 billion to more than $4 billion after signing $2.8 billion of new multi-year contracts. About 85% of that target is already contracted, making deployment and customer acceptance important.
Execution at Childress will matter just as much as bookings. Horizon 1, the first of four 50MW liquid-cooled deployments for Microsoft, has been delivered and accepted under a five-year, $9.7 billion cloud services contract. Investors should watch the timing of Horizons 2-4 and progress toward 480MW of 2026 AI cloud capacity.
The earnings mix is another key issue. In the March-end quarter, Bitcoin mining revenue dropped to $111.2 million from $167.4 million in the prior quarter as mining hardware was decommissioned, while adjusted EBITDA fell to $59.5 million. The upcoming earnings report should show whether faster AI revenue is starting to offset that decline.
Funding remains central to the expansion plan. IREN reported about $7.6 billion of cash and cash equivalents as of June 30, including $1.7 billion of restricted cash tied to Microsoft GPU financing. Recent customer prepayments covered roughly 45% of associated GPU capital expenditure, which could reduce the company’s net funding needs.
IREN vs. Peers: Who Leads the AI Data Center Race?Applied Digital Corporation (APLD - Free Report) offers investors another useful AI-infrastructure read-through. Applied Digital posted fiscal fourth-quarter revenues of $258.7 million, up 407% year over year, while adjusted EBITDA reached $42.4 million. Applied Digital also signed a 15-year, 300MW hyperscaler lease worth about $7.5 billion, keeping new-capacity delivery and financing firmly in focus ahead.
Cipher Digital Inc. (CIFR - Free Report) is making a similar shift from Bitcoin mining toward high-performance computing. Cipher Digital posted second-quarter 2026 revenues of $25 million and adjusted EBITDA of negative $30 million. Cipher Digital also began Black Pearl rent in August, two months early, making data-center delivery, HPC leasing, and project financing investor watchpoints.
IREN’s Price Performance, Valuation and EstimatesShares of IREN have declined 25% over the past three months, underperforming the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 4.32X, which is at a premium to the industry average of 2.58X.
Image Source: Zacks Investment Research
Estimates for IREN’s 2026 and 2027 earnings have been revised downward in the past 30 days. However, the company is expected to report a profit next year.
Image Source: Zacks Investment Research
Currently, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sandisk ve 4. čtvrtletí fiskálního roku 2026 zvýšil výnosy mezikvartálně o 51 % na téměř 9 miliard USD a hrubá marže vzrostla na 84,6 %. Tahounem byl NAND a datová centra, jejichž výnosy vyskočily o 103 % na 3 miliardy USD.
Sandisk (SNDK -0.10%) has been a major beneficiary of the favorable environment for NAND memory. Just look at the numbers.
The company's revenue rose 51% sequentially to nearly $9 billion in the fourth quarter of fiscal 2026 (which ended July 3), while non-GAAP gross margin increased by 6.2 percentage points sequentially to 84.6%. Approximately two-thirds of that sequential revenue growth came from higher NAND memory prices, while only one-third came from selling more NAND.
Against this backdrop, what could Sandisk stock look like five years from now?
Image source: Getty Images
This NAND cycle could be different Artificial intelligence (AI) is already becoming a bigger part of Sandisk's business. The company's data center revenue rose 103% sequentially to $3 billion in the fourth quarter. Datacenter products made up 38% of Sandisk's NAND shipments by storage capacity in the fourth quarter, compared with 12% a year earlier.
Sandisk is also locking in future demand. Sandisk's long-term customer contracts are worth at least $93.9 billion based on their minimum pricing terms. They also cover more than half of the NAND volume expected in fiscal 2027 and about two-thirds of the expected fiscal 2028 volume.
Management expects annual revenue growth in the mid-to-high teens from fiscal 2028 through fiscal 2030. The company also expects non-GAAP gross margins of roughly 80% and adjusted free cash flow equal to about 50% of revenue during this period.
The margin target is especially important. If strong AI demand and long-term contracts help keep margins high, Sandisk could remain very profitable even if NAND prices fall.
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Where could Sandisk stock be in 2031? Analysts currently expect Sandisk to generate about $49.1 billion in revenue in fiscal 2027. From there, assume 17% annual revenue growth from fiscal 2028 through fiscal 2030, roughly in line with the midpoint of management's mid-to-high-teens growth target. As Sandisk's revenue base grows larger, assume a slightly slower year-over-year revenue growth of 15% for fiscal 2031 and 12% for fiscal 2032. Hence, fiscal 2032 revenues are estimated to be close to $101.2 billion.
Sandisk is currently trading at roughly 4.9 times Wall Street's fiscal 2027 revenue estimate. If the company can eventually convert around half of its revenue into adjusted free cash flow as management expects, a 4.9 times sales multiple would imply a price-to-free cash flow multiple of less than 10. Hence, the assumed valuation seems reasonable if Sandisk can maintain strong growth and margins in the next five years.
If the stock continues to trade at the same forward price-to-sales multiple in fiscal 2031, Sandisk's market value would be about $495.9 billion. Assuming the outstanding share count remains nearly 146.4 million, that would put the stock at roughly $3,387 per share. This implies an upside of around 108%, with a five-year annualized return of roughly 15.8% from its current share price (as of Aug 18, 2026). The estimate, however, assumes Sandisk's share count remains unchanged, even though the company still has $15.5 billion available for share repurchases.
Based on these assumptions, Sandisk stock could reach about $3,387 in five years. However, NAND prices and margins remain the key risks. If NAND prices fall sharply and profitability weakens, investors may be unwilling to pay the same valuation for the stock.
SanDisk vykázal ve fiskálním 4. čtvrtletí tržby 8,96 miliardy USD a non-GAAP EPS 39,25 USD na akcii, ale růst může ohrozit čínský konkurent YMTC s asi 14% podílem na globálních dodávkách NAND.
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SanDisk (NASDAQ:SNDK | SNDK Price Prediction) has become the loudest story in memory. The stock closed at $1,600.62 on Thursday, up 3,505% from a year earlier, when it was still trading around $44.40.
The rally rests on a real business shift. Fiscal fourth-quarter revenue rose to $8.96 billion, up 371.59% year over year, and non-GAAP EPS came in at $39.25 against a $33.28 consensus.
CEO David Goeckeler framed the setup this way on the August call: “Demand from our customers is growing faster than our supply. We therefore expect bids to remain on allocation beyond calendar year 2027.” A well-funded Chinese competitor could shorten that runway.
Why the Rally Still Has Fuel The core bull case is a locked-in order book. SanDisk signed New Business Models with eight data-center and edge customers, with a weighted-average duration of over four years.
Management put minimum expected revenue from those agreements at $93.9 billion assuming floor pricing, and said NBMs should account for roughly two-thirds of bits in fiscal 2028.
Datacenter grew to 38% of the bit mix as of the end of fiscal 2026, up from about 12% a year earlier. That mix shift is why non-GAAP gross margin reached 84.6%.
Analysts have followed the move. The Alpha Vantage consensus price target is $2,107.70, with 15 buy ratings, 4 holds, and 1 sell.
How YMTC Could End the Party The threat is capacity. YMTC captured roughly 14% of global NAND shipments in the second quarter and reportedly moved ahead of SanDisk and Micron, a shift that changes the supply math for the whole industry.
NAND is cyclical, and Goeckeler acknowledged as much: “And if you get it wrong, the implications are kind of tragic, right? We saw that in 23.” A determined Chinese entrant, potentially backed by an IPO, could add wafers faster than hyperscaler appetite can absorb them.
SanDisk’s filings list evolving trade policies, tariff regimes and trade wars at the top of its risk stack. Manufacturing is through a joint venture with Kioxia, which adds geopolitical exposure to an already tight supply picture.
Options desks are hedging accordingly. The full-chain put/call ratio is 0.67, but January 2027 sits at 5.87, a lopsided bet on downside protection right where a Chinese supply response would show up.
What to Watch From Here Retail conviction has wobbled. Reddit sentiment turned bearish on August 19, driven by a wallstreetbets thread asking whether memory volatility signaled a bubble (we wrote a free handbook on riding a mania while planning the exit, here).
The stock is up only 0.71% over the past month, even as the year-to-date gain is 574.29%. That flattening is the market pricing in the tension between contracted demand and future Chinese supply.
The bullish cycle is likely to hold through calendar 2027 because NBM commitments account for more than half of next year’s bits, and hyperscalers cannot swap suppliers on short notice. The setup gets more fragile in 2028, when YMTC capacity additions and any macro softness could meet a market that has already priced perfection.
Investors keeping an eye on the stock should track two signals: YMTC’s IPO filings and NAND spot pricing. Both will tell you when the supercycle narrative starts to crack, well before the earnings do.
Contact [email protected] for any questions or corrections.
Ondas ve 2. čtvrtletí zvýšil tržby více než 13násobně na 83,8 mil. USD a zvedl výhled tržeb pro rok 2026 na 525–550 mil. USD. Tržby Red Cat vzrostly o 527 % na 20,2 mil. USD, ale firma musí ve druhé polovině roku prudce zrychlit.
Key Takeaways Ondas' Q2 revenues jumped more than 13-fold to $83.8M, while Red Cat's surged 527% to $20.2M. Ondas ended June with a $613M backlog and raised 2026 revenue guidance to $525M-$550M.Red Cat targets $150M-$180M in 2026 revenues but needs a sharp second-half ramp to reach it. Drone technology is having a moment, with the global drone industry rapidly evolving into one of the most strategically important sectors in defense, surveillance, logistics and autonomous warfare.
According to a report from Mordor Intelligence, the global drone tech market is expected to witness a CAGR of 9.3% from 2026 to 2031. The convergence of drones with artificial intelligence (AI), cloud computing and edge processing is further driving adoption across verticals.
Ondas Inc. (ONDS - Free Report) and Red Cat Holdings (RCAT - Free Report) both operate in the defense and unmanned systems domain, but from very different positions in terms of scale and maturity.
For investors seeking exposure to this theme, the key question remains: which stock offers the better opportunity right now?
Let us do a deep dive into the companies’ competitive dynamics to understand which is better positioned in the industry.
The Case for ONDSOndas recently reported second-quarter 2026 results wherein revenues surged more than 13 times year over year to $83.8 million and beat the consensus estimate by 25.1%. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year. Companies acquired since June 30, 2025, contributed $70 million of the year-over-year revenue increase, including $21.8 million from Sentrycs and $13.2 million from Omnisys. Airobotics added $6.8 million, driven by higher Optimus System and Iron Drone Raider product and service sales.
On the earnings call, management noted that Ondas captured $175 million in new orders during the second quarter and $105 million through the quarter to date. Its two-year strategic program pipeline exceeded $11 billion, spanning aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions.Management consequently raised its full-year 2026 revenue target to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure of 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
Management is not just focused on selling drones but trying to connect a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare and kinetic defeat. SkyWeaver, developed with Palantir, is intended to become an Edge AI layer connecting intelligence across the portfolio. Ondas recently completed ground and aerial testing of the platform, while it is also combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications.
To fund its expansion efforts, Ondas has substantial resources. Cash, cash equivalents, restricted cash and short-term investments totaled about $1.4 billion as of June 30. During the third quarter, Ondas used approximately $325 million of cash to complete the DZYNE and Cyberhawk acquisitions.
However, Ondas has its share of challenges. Extensive M&A amplifies risks, as many acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues.
Second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. While more than half of expenses consisted of noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. The company incurred approximately $4.4 million of acquisition-related transaction costs.
Adjusted EBITDA remained a loss of approximately $51 million. Management expects the second quarter to represent the peak loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. Management expects some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
The Case for RCATRed Cat has begun to demonstrate commercial traction, with second-quarter 2026 revenues surging 527% year over year to $20.2 million. First-half 2026 revenues reached roughly $36 million compared with just $4.8 million a year earlier. First-half gross profit improved to $5.2 million from a gross loss in the comparable prior-year period.
Red Cat is focusing on becoming an all-domain autonomy platform. It recently acquired Quaze Technologies, which develops wireless power transfer technology for unmanned and autonomous systems and drones, while APM Swarm Robotics brings multi-agent autonomy. The company is also broadening reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels (“USV”).
RCAT is witnessing solid demand from defense and government clients and expanding program wins. The company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. Its manufacturing footprint has increased fivefold since 2024 to roughly 260,000 square feet, with another 12,000 square feet added for APM operations.
Management highlighted that it entered the second half with nine active products and roughly 270,000 square feet of production capacity and improved unit economics. This creates a substantially larger operating base from which second-half growth can build. Management reaffirmed its $150-$180 million full-year revenue target. The company also indicated that $50-$80 million of sellable drones could ship immediately if corresponding orders were received, primarily Black Widow and Hellcat units.
Management expects gross margin to reach approximately 30% toward the end of 2026, supported by anticipated improvement from economies of scale as production ramps, as well as a more favorable product mix, particularly higher-margin USV revenues. Blue Ops moved its Variant 7 USV into mass production after completing production validation testing during the second quarter. The platform targets U.S. and allied defense missions spanning ISR, force protection, harbor and coastal security and contested logistics. RCAT also received its first Blue Ops revenues during the quarter. Management expects Blue Ops to become profitable by year-end if it meets the fourth-quarter internal targets, with fewer than 10 boats needed to reach that threshold.
At the quarter-end, RCAT had $325.6 million of cash, nearly double the $167.9 million at year-end 2025. This provides ample financial flexibility to fund manufacturing expansion, acquisitions, R&D and working-capital requirements.
However, execution risk is very high as the company needs to ramp significantly in the second half, as it has only generated roughly about $36 million in revenues in the first half. Even modest delays in contracts, procurement decisions or deliveries could cause revenues to fall materially short of the target.
Increasing expenses remain a concern. Operating expenses were approximately $41.9 million, while R&D alone reached $14.2 million in the second quarter. As a result, RCAT reported a net loss of $35.3 million from $13.3 million reported in the year-ago quarter. If the second-half revenue ramp is delayed, the high fixed investment in personnel, R&D, manufacturing and acquisitions could continue weighing on profitability. RCAT also faces integration risks from acquisitions and execution risks from rapid scaling. Any such problems could undermine the expected second-half revenue ramp or the targeted margin expansion.
Price Performance & Valuation for ONDS & RCATYear to date, ONDS is down 14.1% while RCAT is up 20.2%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price-to-sales ratio, ONDS trades at 5.50X, lower than RCAT’s 6.14X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for ONDS & RCAT?For ONDS, earnings estimates for the current year have decreased 28.6% over the past 60 days.
Image Source: Zacks Investment Research
For RCAT, earnings estimates for the current year have been lowered 14.7% over the same time frame.
Image Source: Zacks Investment Research
ONDS or RCAT: Which Is a Better Pick?While ONDS carries a Zacks Rank #3 (Hold) at present, RCAT has a Zacks Rank #4 (Sell).
Waste Connections ve 2. čtvrtletí překonala odhady: upravený zisk na akcii byl 1,50 USD a tržby 2,56 miliardy USD. Firma zároveň zvýšila výhled tržeb na 10,02–10,05 miliardy USD.
It has been about a month since the last earnings report for Waste Connections (WCN - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Waste Connections due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Waste Connections, Inc. before we dive into how investors and analysts have reacted as of late.
Waste Connections Beats on Q2 EarningsWaste Connections reported impressive second-quarter 2026 results, wherein earnings and revenues outpaced the Zacks Consensus Estimates.
WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.
Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year. Strong pricing and operational execution supported the results, although solid waste unit volumes declined 1.9%.
WCN's Solid Waste TrendsSolid waste internal growth was 3.6% in the quarter. Core price increased 5.6%, while yield, which reflects the average price per unit of service after customer and business-mix changes, improved 4.6%. Fuel and material surcharges contributed 1.1%.
Unit volumes fell 1.9%, reflecting sluggish construction activity and customer churn related partly to fuel surcharges. Roll-off pulls declined 2%, while rates per pull rose 5%. Landfill tons were nearly flat, as a 1% increase in construction and demolition volumes offset weaker special waste activity.
Waste Connections' Segmental RevenuesSolid Waste Collection revenues increased 5.8% year over year to $1.78 billion. Solid Waste Disposal and Transfer revenues advanced 5.1% to $464.3 million. These businesses benefited from pricing, while softer volumes limited organic growth.
Solid Waste Recycling revenues declined 8.1% to $61.4 million due to lower commodity values. E&P Waste Treatment, Recovery and Disposal revenues surged 18.3% to $201 million. Intermodal and Other revenues rose 18.3% to $51.3 million.
WCN's Margin & Cost PictureAdjusted EBITDA increased 6.8% year over year to $840.1 million. The adjusted EBITDA margin expanded 10 basis points to 32.8%. Underlying margin expansion was 70 basis points, driven partly by improved employee retention, safety performance and lower risk-management costs.
Fuel costs reduced the margin by approximately 40 basis points, while lower commodity values created a 20-basis-point drag. Management expects full-year core pricing of at least 5.5% and anticipates recovering elevated fuel expenses over time through surcharges.
Operating expenses increased 6.2% to $1.48 billion. Selling, general and administrative expenses rose 7.2% to $260.5 million. Reported operating income declined 4.8% to $437.6 million, reflecting $58.5 million in impairments and other operating items.
Waste Connections' Cash Flow & Balance SheetNet cash provided by operating activities totaled $733.3 million in the quarter compared with $638.2 million a year earlier. The adjusted free cash flow increased 24.7% to $457.5 million, representing 17.9% of revenues.
For the first six months of 2026, capital expenditure was $598.9 million. WCN also spent $614.5 million in share repurchases and $177.1 million in dividends. The company ended June with $98.2 million in cash and equivalents, and $9.28 billion in long-term debt.
Waste Connections' Growth InvestmentsThe company completed acquisitions representing approximately $100 million in annualized revenues during the first half. Another $30 million of exclusive-market franchise transactions was expected to close shortly, while management continued to anticipate an above-average acquisition year.
WCN’s artificial intelligence pricing tool has generated roughly $20 million in annualized EBITDA benefits. Management is also testing AI-based routing technology and developing customer-service tools. Across seven programs, Waste Connections expects its $100-million AI investment to ultimately produce $100 million in EBITDA improvement as implementation progresses through 2028 and 2029.
WCN’s 2026 OutlookWaste Connections raised its 2026 revenue outlook to $10.02-$10.05 billion. Adjusted EBITDA is projected between $3.33 billion and $3.34 billion, implying a margin of 33.2% to 33.3%.
The company maintained its adjusted free cash flow forecast of $1.4 billion to $1.45 billion, and capital expenditure projection of $1.25 billion. The outlook excludes acquisitions that may close during the remainder of the year.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
VGM ScoresAt this time, Waste Connections has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Tesla v pátek vzrostla asi o 3 % poté, co investoři zvažovali plány uvést Semi v Evropě a detaily má přinést zářijový veletrh IAA v Hannoveru. Akcie jsou letos stále asi o 23 % níže.
shares gained about 3%on Friday as investors assessed the company's plans to bring its electric Semi truck to Europe, following a company post outlining its appearance at September's IAA Transportation show in Hannover.
Tesla is expected to provide details on European availability and vehicle specifications at the industry event. The move gives the company a potential entry point into a commercial-vehicle market where electric truck adoption remains limited.
The European push comes shortly after Swedish logistics company Einride placed an order for 500 Semi trucks. Tesla began producing the vehicle at its Nevada plant in 2026, with the facility designed to handle as many as 50,000 trucks annually.
Despite the latest gain, Tesla remains under pressure in 2026, with shares down about 23% year to date. Investors continue to weigh the company's electric-vehicle business against its developing autonomous-driving and robotics initiatives.
European Semi expansion could provide a new growth avenue, but adoption and production scale remain key factors for investors.
It has been about a month since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 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 Tesla due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Tesla, Inc. before we dive into how investors and analysts have reacted as of late.
Tesla Q1 Earnings MissTesla reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%.
Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Record second-quarter vehicle deliveries and growth across the energy and services businesses supported the top line. Deliveries increased 25% to 480,126 vehicles.
Revenue Growth Broadens Across BusinessesAutomotive revenues rose 23% year over year to $20.52 billion. Automotive sales increased to $20.01 billion from $15.79 billion, while leasing revenues declined to $364 million from $435 million. Regulatory credit revenues fell sharply to $146 million from $439 million.
Energy Generation and Storage revenues grew 13% to $3.14 billion. Services and Other revenues jumped 50% to $4.58 billion, reflecting higher activity across used vehicles, Supercharging, service centers and insurance. Higher Full Self-Driving subscriptions also aided automotive ancillary sales.
Deliveries Set RecordTesla produced 451,758 vehicles, up 10% from the prior-year quarter. Model 3/Y production increased 12% to 442,936 units, while production of other models declined 34% to 8,822 units.
Model 3/Y deliveries rose 25% to 467,762 vehicles, while other-model deliveries increased 19% to 12,364 units. Global vehicle inventory improved to 15 days of supply from 24 days a year earlier. The company exited the quarter with its largest order backlog since 2023.
Software and Energy Metrics Gain MomentumActive paid FSD subscriptions increased 56% year over year to 1.48 million. Tesla achieved record FSD subscription additions and more than 55% of its North American deliveries included an FSD subscription at the time of purchase.
Energy storage deployments climbed 41% to 13.5 GWh, marking Tesla’s second-highest quarterly deployment volume. The company also expanded its charging network to 8,704 Supercharger stations and 82,357 connectors, representing increases of 18% and 17%, respectively.
Margins Contract as Expenses ClimbGross profit rose 23% to $4.75 billion, but the GAAP gross margin contracted 41 basis points to 16.8%. Operating expenses surged 47% to $4.35 billion, driven by research and development spending related to AI, Cybercab, Optimus and Tesla Semi, as well as higher stock-based compensation and selling and administrative costs.
Operating income declined 57% to $398 million, reducing the operating margin to 1.4% from 4.1%. Automotive gross margin excluding regulatory credits was 16.3% compared with 15% a year earlier and 19.2% in the preceding quarter.
Energy gross margin fell to 20.4%, partly due to a roughly $240 million warranty charge tied to vendor battery-cell issues and the absence of prior-quarter tariff benefits. Services and Other gross margin improved sequentially to a record 14.1%, supported by higher volumes and better fleet cost management.
Cash Flow Reflects Heavy InvestmentNet cash provided by operating activities increased 85% to $4.70 billion. However, capital expenditures more than doubled to $5.79 billion from $2.39 billion, resulting in negative free cash flow of $1.09 billion.
As of June 30, 2026, cash, cash equivalents and short-term investments totaled $43.52 billion, up 18% year over year but down $1.22 billion sequentially. Long-term debt and finance leases, excluding the current portion, were $7.92 billion.
Outlook Prioritizes AI and New ProductsTesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Planned investments include Robotaxi fleet expansion, Optimus production capacity, semiconductor manufacturing, solar production and AI computing infrastructure.
Cybercab production has begun at Gigafactory Texas, while Tesla Semi and Megapack 3 remain scheduled to enter production in 2026. The company is installing first-generation Optimus production lines and expanding Robotaxi operations.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -24.42% due to these changes.
VGM ScoresAt this time, Tesla has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
General Motors reported revenues of $48.03 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $3.57 for the same period compares with $2.53 a year ago.
General Motors is expected to post earnings of $3.37 per share for the current quarter, representing a year-over-year change of +20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Motors. Also, the stock has a VGM Score of A.
Uber dostal od nizozemského úřadu pokutu 825 milionů eur za to, že mezi lety 2020 až 2022 automaticky deaktivoval účty řidičů bez dostatečného informování. Firma se odvolá.
was fined €825 million ($966 million) by the Dutch Data Protection Authority for deactivating driver accounts through automated systems without adequately informing them, according to an August 17 decision reviewed by Reuters. The conduct covers 2020 to 2022. Uber shares were up 0.88% intraday.
GDPR bars decisions made solely by algorithm where they have a significant impact on people's lives, and requires meaningful human review and a route to challenge them. The regulator found Uber breached that right and also the right to be informed, treating both as serious enough to warrant the size of the penalty.
The suspensions involved drivers suspected of fraud, including systems concluding they had taken unnecessary detours to inflate fares or accepted trips they didn't intend to complete. Drivers with low customer ratings were sometimes permanently suspended. Uber says it did not permanently deactivate accounts without human review, and that it no longer makes permanent deactivation decisions solely through automated systems.
Uber called the fine "disproportionate" and said it will appeal. The penalty would rank second among all GDPR fines, behind the €1.2 billion Ireland imposed on Meta (META) in 2023 for unlawfully transferring European Facebook users' data to the United States, which Meta is appealing.
AMD za 2. čtvrtletí zvýšila tržby o 50 % na 11,5 miliardy USD a tržby datových center vyskočily o 107 % na 6,7 miliardy USD. Firma zároveň očekává za 3. čtvrtletí tržby kolem 13 miliard USD.
Advanced Micro Devices (AMD +0.13%) is having one of those years where two opposite descriptions of the stock are both accurate. Shares trade near $465 as of this writing. That is more than triple the 52-week low of $149.22, set last fall. It is also about 20% below the 52-week high of $584.73, reached on June 30.
So which end of the range tells the truth?
A buyer today is paying about three times the stock's autumn low, for a company the market valued a quarter higher less than two months ago. Whether that price is a bargain or a warning comes down to what changed between those two marks -- and the honest answer is that the business changed far less than the valuation multiple did.
Image source: AMD.
The business has only gotten betterConsider AMD's impressive second-quarter update.
Revenue in the period rose 50% year over year to $11.5 billion. And data center revenue climbed 107% to $6.7 billion (58% of company revenue) on demand for the company's Instinct AI accelerators and EPYC server processors. Further, management guided for about $13 billion of third-quarter revenue, roughly 41% year-over-year growth.
That report landed on Aug. 4, with the stock already well below its June high. Shares fell further after it, and this week's chip sell-off, which began as long-term Treasury yields jumped, took another bite. The slide since June, in other words, hasn't tracked the company's results. The results, and then the outlook, kept improving straight through it.
The low end of the range is easier to explain.
Last fall, the stock could be had for less than a third of today's price, because the market had real doubts about how much artificial intelligence (AI) business AMD would ever win.
Then came a string of customer commitments -- including an agreement to supply OpenAI with 6 gigawatts of its graphics processing units (GPUs), sweetened with a warrant covering up to 160 million AMD shares -- and quarter after quarter of accelerating data center sales. The tripling off the low is the market repricing AMD as a genuine second source for AI computing.
Compression, not deteriorationNotably, the analyst consensus for the coming year runs near $11 per share on an adjusted basis -- nearly double the adjusted earnings AMD reported over the past four quarters. Measured against that same forward figure, the stock cost about 53 times these forward earnings at its June 30 high. Near $465, it costs about 42 times.
In other words, the price of a dollar of AMD's expected earnings fell by about a fifth, while nothing in the company's growth outlook worsened. What worsened is the market's willingness to pay -- first in the pullback around August earnings, and again this week, as the 30-year Treasury yield touched its highest level since 2007 and chip stocks sold off.
Ultimately, today's price carries less froth than June's. But a price at 42 times those expected earnings still assumes years of rapid growth. In other words, it already counts the near-doubling analysts project -- and plenty beyond it.
Today's Change
(
0.13
%) $
0.59
Current Price
$
470.04
Time to buy?The stock is cheaper, but not necessarily attractive.
Sure, the range's low end is gone for good reasons: AMD is a different company than it was at $149, with a data center business running at a $27 billion annual pace and growing at triple digits. Anyone waiting for those prices again is waiting for the AI case to collapse.
But the high end deserves skepticism, too. June's $584.73 was a market paying 53 times forward earnings, with the sector's momentum at fever pitch.
So, is AMD stock a buy 20% below its high?
To me, the discount is the market repricing risk, not a mis-priced and undervalued stock to pounce on.
The business results argue for the company, and they keep getting stronger. But at 42 times expected earnings, the price still asks for years of things going right, in a sector that just spent a week repricing against a 30-year Treasury yield near its highest level since 2007. While a 20% pullback makes the stock a smaller leap of faith than it was in June. It is a leap of faith all the same.
Hlasování o nabídce nové smlouvy pro největší odborovou organizaci zaměstnanců s bílými límečky v Boeingu končí dnes, výsledky se čekají v polovině odpoledne v Seattlu. Dohoda má odvrátit stávku tisíců inženýrů a techniků.
A Boeing logo is seen before the opening of the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 13, 2025. REUTERS/Benoit Tessier/File Photo Purchase Licensing Rights, opens new tab
CompaniesSEATTLE, Aug 21 (Reuters) - Voting on Boeing's (BA.N), opens new tab contract offer to its largest white-collar union ends on Friday, with results expected by mid-afternoon in Seattle.
Hoping to avoid a strike by thousands of engineers and technical workers, Boeing offered terms that were better than expected, several members of the Society of Professional Engineering Employees in Aerospace (SPEEA) told Reuters.
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However, neither of the bargaining unit councils for SPEEA's engineers and technicians units backed the offer. The technicians unit council recommended that members reject the offer, while the engineers unit council did not meet the 60% threshold needed to give members a recommendation to accept or reject.
The tentative agreement reached with Boeing in late July was endorsed by SPEEA's negotiating team. The engineers and technicians units negotiate collectively with Boeing, but they vote separately. The current contract expires in October.
Speaking to Wall Street analysts in July, Boeing CEO Kelly Ortberg said the company "began these discussions early, because we wanted to work towards an agreement that supports our employees and their families, creates greater clarity for our business and helps us stay focused on the progress we're making."
A work stoppage by SPEEA members would further delay Boeing's certification campaigns for its 737 Max 10 and 777-9, both of which are several years behind schedule.
The proposed four-year contract includes wage increases tied to inflation (capped at 3%) and an individual's performance, as well as other metrics determined by the company, but not specified in the contract.
Several SPEEA members who have already voted to reject the offer told Reuters that capping inflation-based raises at 3% nearly guarantees that their salaries will fall behind inflation.
In 2024, Boeing commercial airplane production in the Seattle area ground to a halt when the roughly 33,000 members of the International Association of Machinists and Aerospace Workers went on strike for seven weeks.
Reporting by Dan Catchpole in Seattle; editing by Philippa Fletcher
Our Standards: The Thomson Reuters Trust Principles., opens new tab
NVIDIA má 26. srpna po uzavření trhu oznámit výsledky za 2. fiskální čtvrtletí, přičemž tržby se očekávají na 91,8 miliardy USD a EPS na 2,09 USD. Očekává se růst tržeb o 96,4 % a zisku na akcii o 99,1 % meziročně.
Key Takeaways Consensus estimates for NVIDIA's Q2 revenue and EPS suggest y/y increases of 96.4% and 99.1%, respectively.NVIDIA's Data Center results may benefit from hyperscale demand, inference adoption and generative AI.NVIDIA's Edge Computing momentum is supported by demand across gaming, robotics and automotive markets. NVIDIA Corporation (NVDA - Free Report) is scheduled to report second-quarter fiscal 2027 results on Aug. 26, after market close.
The company expects revenues of $91 billion (+/-2%) for the quarter. The Zacks Consensus Estimate is pegged at $91.8 billion, which indicates a whopping 96.4% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings has been revised upward by 2 cents over the past 60 days to $2.09. This suggests growth of 99.1% from the year-ago quarter’s earnings of $1.05 per share.
Image Source: Zacks Investment Research
Earnings of the graphics chip maker surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 5.52%.
Q2 Earnings Whispers for NVIDIA TechnologyOur proven model does not conclusively predict an earnings beat for NVDA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: NVIDIA has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence NVIDIA’s Q2 ResultsNVIDIA’s fiscal second-quarter top line is likely to have benefited from the continued strength in its Data Center business. The increasing adoption of cloud-based solutions amid the growing hybrid working trend is anticipated to have boosted the demand for its chips across the Data Center business. An increase in hyperscale demand and growing adoption in the inference market are likely to have acted as tailwinds in the to-be-reported quarter.
The Data Center business should have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Blackwell architectures. The strong demand for its chips from large cloud service and consumer Internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter.
NVIDIA is also strengthening its position beyond GPUs through networking products such as InfiniBand, Spectrum-X Ethernet and NVLink. This is likely to have enabled the company to capture a larger portion of AI infrastructure spending during the fiscal second quarter.
NVIDIA’s fiscal second-quarter performance is also likely to have benefited from the continued momentum in its Edge Computing segment, fueled by strong demand across the gaming, robotics and automotive end markets.
NVIDIA’s Stock Price Performance & ValuationShares of NVIDIA have been highly volatile over the past year. The stock has gained 21.9% over the past year, underperforming the Zacks Semiconductor – General industry’s rise of 27.3%. The stock has also underperformed major semiconductor shares, including Intel Corporation (INTC - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) . Shares of Intel, Advanced Micro Devices and Broadcom have grown 271.5%, 179.3% and 24.2%, respectively.
NVIDIA 1-Year Price Return Performance
Image Source: Zacks Investment Research
Now, let us look at the value NVIDIA offers investors at the current levels. NVIDIA is trading at a discount with a forward 12-month price-to-earnings (P/E) of 19.69X compared with the industry’s 22.14X, reflecting an attractive valuation.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
Compared with other chip giants, NVDA trades at a lower multiple against Intel, Advanced Micro Devices and Broadcom. Currently, Intel, Advanced Micro Devices and Broadcom trade at a forward P/E of 51.77X, 39.08X and 20.60X, respectively.
Investment Consideration for NVIDIAThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models. The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.
Final Thoughts: Buy NVDA Stock NowAs a leading player in the semiconductor industry, NVIDIA has benefited from its dominance in GPUs and strategic expansion into AI and data centers. The company's strong product portfolio, leadership in AI and relentless innovation present a compelling investment opportunity. A lower valuation multiple than the industry also suggests that NVIDIA is a good investment option right now.
Microsoft schválil Horizon 1, první ze čtyř datových center IREN v rámci pětileté smlouvy za 9,7 miliardy USD. IREN tak může začít fakturovat a proměňuje AI projekty v provozní infrastrukturu a tržby.
Data-center operator IREN Ltd. (IREN, Financials) has built its business on Bitcoin mining and is beginning to demonstrate that AI drive is more than a promise.
Microsoft Corp. (MSFT, Financials) has officially approved Horizon 1, the first of four data centers IREN is developing under a five-year, $9.7 billion deal.
That's important because IREN may now begin to send Microsoft a bill every month. One of the major uncertainties around the company until now has been whether it can really execute an AI buildout that dwarfs its existing business. The first real proof point is Horizon 1.
Also operating the site were Nvidia Corp. (NVDA, Financials) computers with GB300, which gave the site Exemplar Cloud status, offering IREN another vote of confidence in performance and reliability.
The corporation has already put together a $3.65 billion loan package connected to the Microsoft contract that should pay much of the GPU spending. It also has a separate five-year $3.4 billion cloud deal with Nvidia.
There's still a lot to prove. While IREN's AI business remains small in comparison to Bitcoin mining, the growth comes with substantial cash needs.
But that story is changing. Investors are no longer merely waiting for IREN to announce huge AI acquisitions. They are beginning to see those deals turn into operational infrastructure and now revenue.
AMD ztratila SpaceX ve prospěch NVIDIA, která získala přístup k AI infrastruktuře na platformě Vera Rubin. Přesto AMD ve 2. čtvrtletí zvýšila výnosy o 50,1 % na 11,54 miliardy USD a výnosy datacentra o 107 % na 6,72 miliardy USD.
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Elon Musk’s decision to build SpaceX’s (NASDAQ:SPCX | SPCX Price Prediction) AI infrastructure around NVIDIA’s (NASDAQ:NVDA) Vera Rubin platform, reportedly claiming 20% of NVIDIA’s next-platform capacity, is the kind of headline that makes AMD bulls nervous. It denies Advanced Micro Devices (NASDAQ:AMD) a flagship logo at exactly the moment Lisa Su is trying to convince Wall Street her Instinct roadmap can rival Jensen Huang’s.
The stock has felt it. Shares closed at $469.46 on Thursday, down 13.77% over the past month even after a blowout quarter.
The question is whether SpaceX is a symptom of something structural or a single lost deal in a market AMD believes will approach $2 trillion by 2030. The answer sits closer to the second interpretation than the first.
What the SpaceX Loss Actually Signals Musk’s rationale centers on allocation guarantees. SpaceX wants guaranteed allocation on a platform NVIDIA controls, and NVIDIA chooses who gets capacity.
That gives NVIDIA a lever AMD cannot yet match: the ability to convert scarcity into exclusivity with the largest AI spenders on earth.
SpaceX also fits a very specific customer profile. It is a single-tenant buyer aligned philosophically with Musk’s xAI, and Grok training runs benefit from staying within a single hardware stack.
Losing that customer stings, but reading it as evidence that AMD is falling apart overlooks the fact that AMD actually won this cycle.
Counter-Evidence Is Loud AMD reported Q2 revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue of $6.72 billion, up 107%.
That segment now generates $2.1 billion in operating income, a swing from a loss a year ago tied to China export charges.
The customer list backing the forward story runs deep. AMD has committed deployments with OpenAI, Meta (NASDAQ:META), and Anthropic, whom Lisa Su called “strategic anchor customers,” plus a 2-gigawatt Anthropic deal on MI450 in Helios and Microsoft (NASDAQ:MSFT) Azure at scale.
Su told analysts, “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.”
Verdict: Contested, Not Collapsing NVIDIA still commands preferential access to hyperscale capital and can still lock in customers like SpaceX through allocation politics rather than benchmarks. That advantage is real, and AMD’s forward P/E of 65 assumes it narrows.
But AMD’s challenge remains intact. Data Center is expected to more than double year over year in 2027, and management raised its long-term targets rather than trimming them. (We reverse-engineered what the biggest chip winners looked like early on and put the pattern in a free playbook, here.)
Reddit sentiment scored a neutral 48 this week, with the most upvoted thread titled “Looking for different perspectives, sell or reduce my position in AMD.” That caution is fair given the recent drawdown.
SpaceX is a loss worth acknowledging, although it is one customer inside a market where AMD has already secured multi-gigawatt commitments from the companies actually building frontier models. The AI challenge is being contested, which is a different thing entirely.
Contact [email protected] for any questions or corrections.
AMD oznámila rekordní tržby ve výši 11,54 miliardy USD a tržby v datových centrech vzrostly meziročně o 107 % na 6,72 miliardy USD. NVIDIA mezitím vykázala tržby v datových centrech ve výši 75 miliard USD, což je meziročně o 92 % více.
AMD (NASDAQ: AMD | AMD Price Prediction) and NVIDIA (NASDAQ: NVDA) both just delivered post-earnings reports that reframe the AI hardware race. AMD posted record revenue of $11.54 billion with Data Center more than doubling. NVIDIA answered with an $82 billion quarter and Blackwell shipping into every major hyperscaler.
The question is whether AMD is finally catching up, or whether Jensen Huang just widened the moat again.
Helios Lands. Blackwell Scales. Two Different Zip Codes. AMD’s quarter was carried by Data Center revenue of $6.72 billion, up 107% year over year and now 58% of total revenue. EPYC server chips grew greater than 70% year over year, and Instinct more than doubled.
Lisa Su called out Helios, the new rack combining EPYC Venice, MI450 GPUs and Pensando networking, saying customer pull is “very strong and tracking ahead of our initial forecasts.” Anthropic committed to up to two gigawatts of MI450 series GPUs in Helios, with the first gigawatt starting in 2027.
NVIDIA operates at a different altitude. Data center revenue hit $75 billion, up 92%, with networking alone nearly tripling year over year.
Huang told investors the company sees $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and that “we are growing share in inference very, very quickly.” Buybacks got an $80 billion refresh. The dividend jumped to 25 cents per share.
Business Driver AMD NVIDIA Data Center Revenue $6.72B (+107%) $75B (+92%) Non-GAAP Gross Margin 56% 75% Next-Quarter Guide ~$13B (+41%) $91B (+/-2%) Challenger Rack vs. Full-Stack Monopoly AMD is betting that a credible second source of gigawatt-scale AI compute is worth many billions to hyperscalers who dislike sole-vendor risk. Rackham software now runs more than 3 million models out of the box, with open-source contributions up more than tenfold over the past year. That is real progress against CUDA, though not parity.
NVIDIA’s pitch is vertical integration. Vera Rubin production begins in Q3, and Huang says it can deliver up to 35x higher inference throughput than Blackwell. Standalone Vera CPUs open a claimed $200 billion TAM on top of GPUs. The competitive gap extends well beyond silicon into NVLink, Spectrum-X, InfiniBand and CUDA glued together.
All that gigawatt-scale compute still has to be powered, cooled, and networked by somebody, which is the whole thesis behind our free report on seven AI infrastructure suppliers that aren’t chipmakers.
What I Want to See in Q3 and Q4 I will be watching Helios yields and how quickly Anthropic’s first gigawatt actually turns into revenue. AMD guided Q3 to roughly $13 billion, and management expects Data Center to more than double year-over-year in 2027.
You should also watch NVIDIA’s ability to defend gross margin at 75% while China compute stays excluded from guidance.
How the Setup Favors Each Name On the fundamentals, NVIDIA still screens as the higher-quality name. A P/E of 34 paired with 65.6% operating margins is rare at this scale, and Rubin looks like another generational lead.
AMD screens as the higher-beta way to play the theme. Shares are already up 180.05% over the past year, and the stock trades at a forward P/E of 68, which prices in a lot of Helios success. If MI450 ramps cleanly through 2027, AMD has room to run.
If yields slip or China policy tightens further, the platform that “runs every frontier AI model” looks like the more defensive exposure. Reddit’s neutral, hesitant tone on AMD, with sentiment scores of 45, 47, 48, 48, and 50, tells me I am not alone in that caution.
Contact [email protected] for any questions or corrections.
AT&T za poslední měsíc přidala asi 9,5 % a překonala index S&P 500. Ve 2. čtvrtletí zvýšila upravený zisk na akcii na 65 centů a potvrdila výhled pro rok 2026.
It has been about a month since the last earnings report for AT&T (T - Free Report) . Shares have added about 9.5% 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 AT&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
AT&T Surpasses Q2 Earnings Estimates on Fiber & Wireless Growth
AT&T reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.
Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
T Gains from Advanced Connectivity Momentum
Advanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.
Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense.
AT&T Posts Strong Internet Customer Growth
Advanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.
AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end.
T Benefits from Wireless Subscriber Expansion
Wireless service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.
Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.
AT&T Navigates Legacy Declines and Mexico Costs
Legacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.
Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.
T Expands Profitability and Cash Generation
Consolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.
Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.
AT&T Reaffirms Outlook and Accelerates Buybacks
AT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.
The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresCurrently, AT&T has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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, AT&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zoom Video čeká za 2. fiskální čtvrtletí tržby 1,265 až 1,270 miliardy USD a zisk na akcii 1,45 až 1,47 USD. Tahounem má být Enterprise a růst AI Companion, slabší zůstává Online a měnové vlivy.
Key Takeaways Zoom Video enters Q2 with Enterprise revenue growth and stronger high-value customer gains.AI Companion adoption surged 184%, while My Notes surpassed 1.5 million licensed users.Online growth stayed soft as churn rose, while foreign-exchange volatility remained a headwind. Zoom Video Communications (ZM - Free Report) is slated to release second-quarter fiscal 2027 results on Aug. 25.
Zoom expects its second-quarter fiscal 2027 revenues to be between $1.265 billion and $1.270 billion. Revenues on a constant-currency basis are expected to be between $1.262 billion and $1.267 billion.
The Zacks Consensus Estimate for the top line is currently pegged at $1.27 billion, indicating growth of 4.22% from the year-ago quarter.
Non-GAAP income from operations is expected to be between $508 million and $513 million. Non-GAAP earnings per share are expected to be in the range of $1.45-$1.47, based on approximately 304 million weighted-average shares outstanding.
The consensus mark for earnings has remained steady at $1.50 per share over the past 30 days, indicating a decline of 1.96% year over year.
ZM’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the same once, delivering an average surprise of 6.3%.
What Our Model UnveilsPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ZM has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s see how things have shaped up for this announcement.
Factors to ConsiderSeveral factors appeared positioned to shape Zoom Communications' second-quarter fiscal 2027 results. On the positive side, Enterprise momentum carried into the quarter, producing 7.2% year-over-year growth and a trailing 12-month net dollar expansion rate of 99% for Enterprise customers as of the fiscal first quarter, alongside an 8.2% year-over-year increase in customers contributing more than $100,000 in trailing 12-month revenues.
Expanding AI monetization is expected to support results, with paid AI Companion adoption up 184% year over year and My Notes surpassing 1.5 million licensed users within months of launch, indicating continued contributions from AI-attached seats and new AI revenue streams.
Profitability trends heading into the quarter, including a 41.1% non-GAAP operating margin and $500.5 million in free cash flow in the prior quarter, along with the board's incremental $1 billion buyback authorization on top of $625 million remaining, further signaled capacity for continued margin discipline and capital return.
On the negative side, Online revenue growth had been comparatively soft at 2.8% year over year entering the quarter, with monthly churn ticking up to 3% from 2.8% a year earlier, a dynamic that is expected to have persisted given uneven small-business demand. Continued foreign-exchange volatility was also flagged as a headwind to reported results, though not to constant-currency results. Against this backdrop, guidance called for total revenues of $1.265 billion to $1.270 billion and non-GAAP diluted earnings per share of $1.45 to $1.47, implying continued but moderating growth relative to the first quarter's 5.5% pace.
Segment developments during the to-be-reported quarter reinforced the AI-first positioning underlying that outlook. In May, Zoom's board authorized the additional $1 billion share repurchase alongside the first-quarter release, while Contact Center and Phone SDKs were extended with real-time audio-translation capabilities.
In June, Zoom launched ZoomMate, an agentic AI work surface combining agentic search, AI-generated deliverables and automated execution across Salesforce, Jira, Slack and ServiceNow, later expanding it with AI agents and introducing Zoom AI On-Prem for regulated enterprises, while AI Companion features were folded natively into Zoom Workplace.
In July, Zoom announced its planned acquisition of Common Room to add buyer-intelligence capabilities to its AI revenue platform, expanded Zoom Virtual Agent Receptionist across telephony environments and unveiled Zoom Revenue Accelerator enhancements to drive revenue action.
Taken together, Enterprise strength, AI monetization progress and expanded buybacks are expected to support results within the guided ranges, while Online softness, elevated churn and currency headwinds remained the primary offsetting factors heading into the print.
Stocks With the Favorable CombinationHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.
Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.
Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.
Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.
Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.
GE Aerospace v první polovině roku 2026 odkoupila akcie za 4,2 miliardy USD a vyplatila dividendy ve výši 873 milionů USD. Zároveň zvýšila dividendu o 30,6 % na 36 centů na akcii a zvedla výhled volného peněžního toku na 8,9–9,2 miliardy USD.
Key Takeaways GE Aerospace repurchased $4.2 billion of shares and paid $873 million in dividends in first-half 2026.GE Aerospace raised its dividend 30.6% to 36 cents per share and has a $20 billion buyback authorization.GE Aerospace expects 2026 free cash flow of $8.9-$9.2 billion, up from its prior $8.0-$8.4 billion view. GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In the first half of 2026, it bought back shares for $4.2 billion and paid dividends of $873 million, up 26.9% year over year, to its shareholders. In addition, in 2025, it rewarded its shareholders with a dividend payment of $1.45 billion and repurchased shares for $7.55 billion. Following the first quarter of 2026, share repurchases are being made under the new $20 billion authorization approved in December 2025.
GE Aerospace raised its dividend by 30.6% to 36 cents per share in February 2026. It expects to generate a free cash flow of $8.9-$9.2 billion in 2026, much higher than $8.0-$8.4 billion guided previously. Also, the company previously announced its plans to boost total shareholder returns by 20% to approximately $24 billion from 2024 to 2026, through a mix of dividends and share repurchases.
The company’s strong liquidity also supports its shareholder-friendly policies. Exiting the second quarter, GE’s cash, cash equivalents and restricted cash were $9.3 billion, much higher than the short-term borrowings of $2 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Do GE’s Peers Focus on Returning Capital to Shareholders?3M Company (MMM - Free Report) rewarded its shareholders with dividend payouts of $0.8 billion and $3 billion in buybacks in the first six months of 2026. Exiting the second quarter of 2026, 3M had approximately $1.8 billion remaining under the share repurchase program. Also, in February 2026, 3M hiked its quarterly dividend by 6.8%.
Howmet Aerospace (HWM - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first six months of 2026, Howmet paid dividends of $97 million, and in July 2026, it hiked its dividend by 17% to 14 cents per share (annually: 56 cents). On a year-to-date basis through July, HWM repurchased shares worth $800 million. As of Aug. 6, 2026, Howmet’s total share repurchase authorization available was $697 million.
GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 3% in the past six months against the industry’s decline of 10%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.15X, above the industry’s average of 33.51X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Starbucks letos vzrostl o 25 %, zatímco Dutch Bros klesl o 18 %. Přesto Dutch Bros dál rychleji roste: tržby za posledních 12 měsíců stouply o 29 % a provozní zisk o 35 %.
Starbucks (SBUX +1.64%) stock is up 25% year to date, reflecting the business's improving momentum this year under CEO Brian Niccol, who took over in 2024. Meanwhile, Dutch Bros (BROS +0.84%) stock has fallen 18% as of this writing. That gap stands out, especially because Dutch Bros remains the faster-growing coffee business in terms of revenue and profits.
The underperformance doesn't look justified and could be an opportunity for investors, since Dutch Bros appears to offer a longer growth runway.
Image source: Getty Images.
Starbucks is executing a solid comeback Starbucks' trailing-12-month revenues grew by 4.5% year over year in its fiscal third quarter, which ended June 28, but higher costs have weighed on profitability. Trailing-12-month operating income grew by just 2.5% as the company absorbed turnaround-related costs such as investments to improve service, as well as the impact of higher coffee prices.
Still, Niccol's strategy appears to be working. Global comparable-store sales have accelerated for four straight quarters, and climbed 7.9% year over year in fiscal Q3.
Those improvements are being driven by higher visit frequency. The company has the benefit of a massive loyal customer base, as evidenced by its 35 million-plus Starbucks Rewards members. Management said brand affinity, customer consideration, and purchase intent are at five-year highs.
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Dutch Bros continues to perform at a high level Dutch Bros' trailing-12-month revenue grew 29% year over year. Even better, operating profit rose 35%, showing the company is scaling profitably as it opens more shops across the U.S.
It just delivered its eighth straight quarter of transaction growth and its 13th consecutive quarter of positive comparable-store sales growth. Company-operated same-shop sales rose 8.3% year over year, with systemwide same-shop sales up 5.8%.
Dutch Bros trades at a lower valuation relative to growth Dutch Bros shares trade at a forward price-to-earnings ratio of 52, which is high, but that valuation is supported by analysts' consensus long-term earnings growth estimate of 32% annually.
Starbucks trades at a forward P/E of 41, but analysts expect its earnings to grow by only 19% annually. That gives Dutch Bros the lower price/earnings-to-growth (PEG) ratio of 1.63, compared to Starbucks' 2.15. The PEG comparison shows that investors are getting more value for Dutch Bros' higher expected earnings growth rate than for Starbucks.
A lower PEG ratio sets up the potential for stronger long-term shareholder returns. Dutch Bros currently has 1,225 shops open, but it believes its addressable market can support 7,000 shops. Management believes it is on a path to expand to 2,029 locations by 2029.
Both are solid businesses that can deliver returns. But Dutch Bros' 18% share price decline this year doesn't appear to match either the company's fundamentals or the growth it has ahead.
Xerox ve 2. čtvrtletí překonal odhady a zvýšil výhled na rok 2026 díky synergiím Lexmarku a úsporám nákladů. Upravená provozní marže vzrostla na 10,6 %.
Key Takeaways Xerox beat Q2 estimates and raised 2026 revenue and adjusted operating income guidance.Lexmark synergies and cost actions lifted margins, with adjusted operating margin reaching 10.6%.Pro forma revenue fell 6.5%, while free cash flow improved to $11 million in the second quarter. Xerox Holdings Corporation (XRX - Free Report) topped second-quarter 2026 expectations and raised its full-year outlook as Lexmark integration benefits and cost actions lifted profitability. Revenue growth was acquisition-driven, while underlying demand remained softer.
The main question is how much of the profit improvement can persist without the $105 million tariff-receivable benefit. Margin expansion excluding that item and higher Lexmark synergy targets support the operating case, but pro forma revenue declines and modest free cash flow keep execution in focus.
XRX's Q2 Beat Included a $105 Million TailwindXRX reported earnings of 36 cents per share, topping the Zacks Consensus Estimate by more than 100%. Revenues of $1.92 billion beat the consensus mark by 1% and increased 22% year over year.
Profitability received material support from a $105 million pre-tax benefit tied to tariff receivables. Adjusted operating margin reached 10.6%, but excluding that benefit, the margin was 5.1%, still up 140 basis points year over year.
Xerox Raises 2026 Profit Guidance After Q2Xerox now expects 2026 revenues of approximately $7.6 billion, up from its prior outlook of more than $7.5 billion. The revision reflects higher expectations for the Print and Other segment.
Adjusted operating income guidance increased to $555-$605 million from $450-$500 million. Free cash flow guidance remained approximately $250 million, making the unchanged cash target an important counterpoint to the higher profit outlook.
XRX's Lexmark Synergies Add Operating LeverageXerox raised its Lexmark gross cost synergy target by $50 million to at least $350 million, with half expected to be realized in 2026. The higher target builds on Project Reinvention and the company's broader effort to reduce its cost base.
Adjusted gross margin improved to 36.4% from 29.3%, aided by Lexmark, integration synergies and transformation savings. The margin progress suggests operating leverage is emerging, although the tariff-receivable benefit also contributed to reported profitability.
Xerox's Pro Forma Revenue Decline Tests MomentumReported revenue rose 22% year over year, but pro forma revenue declined 6.5%. Print and Other revenue fell 6.1% on a pro forma basis, while pro forma equipment revenue dropped 13%, showing that acquisition-driven growth has not yet translated into underlying expansion.
HP Inc. (HPQ - Free Report) remains a relevant print benchmark because it continues to report a dedicated Printing segment. Canon Inc. (CAJPY - Free Report) likewise competes across office multifunction devices, laser printers and production printing through its Printing Business Unit.
XRX's Free Cash Flow Must Catch UpFree cash flow improved to $11 million in the second quarter from an outflow of $30 million a year earlier. Operating cash flow reached $37 million compared with an $11 million outflow in the prior-year period.
Image Source: Zacks Investment Research
The improvement is directionally positive, but Xerox still expects approximately $250 million of free cash flow for 2026. Delivery against that target will help show whether margin gains and integration savings are translating into stronger cash generation.
XRX's Style Scores Point to Mixed Near-Term SignalsThe quarter strengthened Xerox's profit outlook, but the mix of tariff benefits, synergy gains and contracting pro forma revenues keeps the durability question open. Stabilization in underlying revenue trends would make the margin improvement more convincing.
XRX currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term stance. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those grades are constructive within the Style Score framework, but Style Scores are designed to complement rather than override the Zacks Rank.
NCLH čeká zpomalení růstu kapacity na 2,5% CAGR v letech 2026–2029, protože do služby přibude méně lodí. Kapacita má v roce 2026 vzrůst o 7 %. Nižší kapitálové výdaje mají podpořit volný peněžní tok a snižování dluhu.
Key Takeaways NCLH sees capacity growth slowing to a 2.5% CAGR from 2026-2029 as fewer new ships enter service.Norwegian Cruise expects newbuild and growth capex to decline by nearly $1B annually as deliveries ease.NCLH's cost savings and lower capital needs are expected to support free cash flow and deleveraging. Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is moving toward a less capital-intensive phase of fleet expansion after several years of elevated newbuild activity. Capacity days are expected to increase 7% in 2026, but growth is projected to moderate to a 2.5% CAGR over the 2026-2029 period as the pace of ship deliveries slows. The shift is likely to support a more favorable backdrop for free-cash-flow generation over the next several years.
The cash-flow opportunity is backed by a meaningful reduction in the newbuild cadence. NCLH expects to take delivery of two ships in both 2026 and 2027, followed by one ship in each of 2028 and 2029. Gross newbuild and growth capital expenditures are consequently expected to decline by nearly $1 billion annually. The company is also managing fleet composition, with five ships expected to leave the fleet over the next three years.
Cost initiatives provide additional support to free-cash-flow generation. NCLH has identified more than $500 million of savings over the past three years, including approximately $225 million of annualized savings and cash benefits announced during the past two quarters. The vast majority of the benefits from the latest $100 million initiative relate to capital expenditures, while additional efficiency opportunities remain across SG&A and shipboard operations. These measures are expected to support margins and cash generation.
The cash-flow case remains sensitive to operating performance. NCLH expects year-end 2026 net leverage to remain above six times, while near-term yields continue to face pressure from a below-optimal booked position.
As the newbuild cadence moderates, NCLH expects stronger free cash flow to support debt reduction and meaningful progress on deleveraging. Lower growth-related capital spending and continued cost discipline are likely to support cash generation and provide a more favorable financial framework for balance-sheet improvement over time.
NCLH’s Price Performance, Valuation & EstimatesShares of Norwegian Cruise have declined 28.3% in the past year compared with the industry’s 0.3% fall. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. (RCL - Free Report) and Carnival Corporation & plc (CCL - Free Report) have declined 11.5% and 13.3%, respectively.
NCLH One-Year Price Performance
Image Source: Zacks Investment Research
NCLH stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.86, well below the industry average of 17.52. Industry players, such as Royal Caribbean and Carnival have P/E ratios of 14.92 and 10.18, respectively.
NCLH’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Norwegian Cruise’s 2026 earnings per share has declined in the past 30 days.
EPS Trend of NCLH Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating an 24.2% fall in 2026. Conversely, industry players like Royal Caribbean are likely to witness an increase of 13.7%, year over year, in 2026 earnings. Meanwhile, Carnival’s 2026 earnings are likely to witness a fall of 0.9% year over year.
NCLH’s Zacks RankNCLH stock currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IBM za měsíc od posledních výsledků přidala asi 13,1 % a překonala S&P 500. Výnosy za 2. čtvrtletí zklamaly, ale upravený zisk na akcii 2,93 USD splnil odhady.
It has been about a month since the last earnings report for IBM (IBM - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IBM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
IBM Q2 Earnings Meet Estimates, Revenue Misses on Deal Delays
IBM reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%.
The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent.
Software Growth Slows on Transaction Timing
Software revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.
Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall.
About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.
HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.
Consulting Gains from AI Transformation Demand
Consulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%.
Infrastructure Segment Mix Weighs
Infrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.
IBM Expands Operating Profit Despite Gross Margin Pressure
Non-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.
Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.
IBM Maintains Cash Flow Discipline
IBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.
The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends.
IBM Trims Revenue View but Raises Margin Target
For 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.
Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresAt this time, IBM has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, IBM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Moderna a Merck oznámily, že jejich personalizovaná mRNA vakcína proti rakovině splnila primární cíle ve fázi 3 u melanomu. Jde o první mRNA léčbu rakoviny, která uspěla ve fázi 3.
For years, Moderna, Inc‘s (NASDAQ:MRNA) biggest challenge wasn’t developing new medicines — it was convincing investors that it could thrive after COVID-19. The company’s vaccine transformed it into one of the world’s most recognizable biotech names, but as the pandemic demand faded, so did its revenue and stock price.
Now, a breakthrough in cancer treatment may finally give Moderna the second act investors have been waiting for.
COVID Turned Moderna Into a Biotech Powerhouse, Then Came the Hard PartRevenue climbed to nearly $19 billion in 2021 and $20 billion in 2022 from just about $800 million in 2020, in the wake of its COVID-19 vaccine, turning the once little-known biotech into one of the industry’s biggest success stories. Once the COVID-19 hype died down, revenue again stalled back to about $7 billion in 2023 and is being reported lower each year. In 2025, Moderna fell short of breaching $2 billion in annual revenue.
This drop left investors questioning whether the company could build another meaningful business beyond the COVID-19 vaccine. While the company continued investing billions of dollars across vaccines and therapeutics, Wall Street largely viewed it as a business searching for a successor to its pandemic blockbuster.
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The Cancer Breakthrough Changes the ConversationThat narrative shifted this week.
Moderna and Merck & Co Inc. (NYSE:MRK) announced that their personalized mRNA cancer vaccine met the primary endpoints in a Phase 3 melanoma trial, marking the first mRNA-based cancer treatment to demonstrate success in a Phase 3 trial. The treatment is designed by analyzing a patient’s tumor and creating a customized vaccine that helps the immune system recognize and attack remaining cancer cells after surgery.
More importantly for investors, the melanoma result is about more than one drug. It provides Moderna with its strongest clinical evidence yet that its mRNA platform could have applications beyond infectious diseases. The company is already studying the same personalized approach in other cancers, including lung, bladder and kidney, giving investors a glimpse of a much larger opportunity if the technology continues to deliver.
Investment TakeawayThe market’s reaction wasn’t simply a celebration of a promising melanoma treatment. It reflected a broader shift in how investors may begin to value Moderna. For the first time since the pandemic boom faded, the company has a compelling answer to the question that has defined its investment story: what comes next?
The Phase 3 success does not guarantee commercial success, and investors will still want to see detailed trial data and progress in other cancers. But if this breakthrough proves to be the first validation of a broader oncology platform, COVID-19 may be remembered as the chapter that made Moderna famous — while cancer becomes the one that defines its future.
Merck zůstává podle článku podhodnocený, když se obchoduje za 16násobek odhadovaných upravených zisků pro rok 2027. Firma navíc hlásí pipeline s potenciálem přes 70 miliard USD ve více než 20 nových produktech.
SHENZHEN, CHINA - JULY 27: In this photo illustration, a smartphone displays the logo of Merck & Co., Inc. (NYSE: MRK), a global pharmaceutical company developing medicines and vaccines, in front of a screen showing the company's latest stock market chart on July 27, 2026 in Shenzhen, Guangdong Province, China. (Photo illustration by Cheng Xin/Getty Images)
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This article was written by Doug Nathman, with research by his team at Trefis.
You wouldn’t anticipate a pharmaceutical powerhouse with a $368 billion market capitalization to produce results that leave growth investors feeling embarrassed. Nevertheless, in the past year, Merck (MRK) delivered an impressive 73% return to investors, outpacing the S&P 500. The peak occurred on August 19, 2026, when the stock reached unprecedented highs.
What triggered the recent surge? The direct catalyst was the successful clinical trial of the experimental mRNA cancer vaccine in collaboration with Moderna (MRNA). This achievement exhibited significant effectiveness, resulting in a notable increase in buying activity due to immediate revenue potential in oncology. However, yesterday's announcement merely confirms a larger strategy. The true factor driving the annual gain is how systematically Merck addressed the principal concern that has kept shareholders awake at night: What will transpire after the KEYTRUDA patent expiration?
For numerous years, the approaching loss of exclusivity for the blockbuster drug KEYTRUDA posed a substantial burden. The company’s leadership responded to this anxiety with a consistent stream of clinical and regulatory successes. The pipeline has produced concrete outcomes, transforming the company from one on the brink of a patent expiration to one that is constructing a dependable pathway for steady earnings growth.
What has the pipeline actually achieved?The pivotal event was the FDA's approval of LIPFENDRA. As the first oral PCSK9 inhibitor for individuals with high cholesterol, it disrupts a market that has been primarily reliant on injectables. Clinical evidence indicates that this daily pill can reduce LDL cholesterol by as much as 60% when used in conjunction with a statin. In addition to the recent mRNA cancer vaccine data, Merck also reported favorable Phase III results for sac-TMT in endometrial cancer and tulisokibart for ulcerative colitis. Growing uncertainties in the pipeline have been replaced by confirmed successes, demonstrating that the research engine continues to be highly productive.
How substantial is this new commercial plan?With clinical data solidifying, management has finally outlined future expectations. They estimate a pipeline with over $70 billion in commercial potential spread across more than 20 new products. For a market fixated on the forthcoming KEYTRUDA revenue gap, this figure serves as a compelling counter-narrative. The significant stock revaluation indicates that Wall Street now confidently endorses this projection.
Is the new valuation warranted when compared to competitors?Valuation serves as the ultimate test of this shift. All forward-looking peer valuations are based on consensus estimates for 2027 on an adjusted EPS basis. At $152 per share against anticipated adjusted earnings of $9.56, Merck is trading at a mere 16x forward earnings. When compared across the peer landscape, while Pfizer (PFE) is priced at a lowly 9.6x multiple and AbbVie (ABBV) at 16.4x, higher-growth competitors command significant premiums. Johnson & Johnson (JNJ) trades at 21.5x forward earnings, while Eli Lilly (LLY) commands 27x. Even with an over 73% rise in the past twelve months, Merck's 16x multiple underlines that the stock is still undervalued relative to top-tier competitors, suggesting more upside potential if they maintain performance.
Can Merck successfully market LIPFENDRA?Acquiring approval for a drug is one challenge, but achieving widespread prescriptions is quite another. The track record of injectable PCSK9 inhibitors has been marked by slow adoption rates, particularly within primary care environments. Analysts are scrutinizing the speed of initial access and whether a significant outcomes trial will act as the commercial turning point. Merck is betting vigorously on total market expansion rather than merely capturing existing market share.
Has the sales strategy been validated?The risks of clinical development have largely diminished, replaced by the less predictable risks associated with global commercial execution. The foundational science behind the mRNA cancer vaccine has been validated by late-stage clinical findings, while the broader pipeline continues to receive formal approvals from regulators. Now, the company must flawlessly execute its commercialization strategy to substantiate the new valuation.
The Final AssessmentInvestors should consider Merck not merely as a company facing a looming patent expiration, but rather as a de-risked commercial leader with clear visibility into its pipeline. In our opinion, Merck remains fundamentally undervalued at 16x 2027 adjusted earnings compared to its peer group, presenting an appealing risk-reward profile as operational execution unfolds.
The Trefis High Quality (HQ) Portfolio uses a rules-based methodology to select and systematically rebalance 30 stocks screened for operational quality and valuation metrics. This strategy evaluates companies across a broad market universe and measures its historical performance against a composite benchmark of the S&P 500, S&P Mid-Cap, and Russell 2000 indices.
Irák chce během šesti let více než zdvojnásobit těžbu ropy na 8 až 10 milionů barelů denně a jedná o vyšší kvótu OPEC. To může výrazně posílit Chevron, který chce vstoupit do polí West Qurna 2 a Nassiriya.
Iraq has a bold ambition for its oil industry. The country recently sent a delegation to Saudi Arabia seeking a higher production quota from OPEC, aiming to boost its output to between 8 million and 10 million barrels per day (bpd) within the next six years. That's more than double the 4 million bpd it produced before the war with Iran slowed oil flows through the Strait of Hormuz.
This move could have a major impact on Chevron (CVX -0.03%), which recently signed memorandums of understanding (MOUs) with the Iraqi government to enter two oil fields in the country. Here's a look at the leading role Chevron could play in Iraq's oil resurgence.
Image source: The Motley Fool.
Chevron could be crucial to Iraq's plansLast month, Chevron signed MOUs with Iraq regarding the West Qurna 2 and Nassiriya oilfields. The first potential deal would see it assume operational control of one of the world's largest oil fields. West Qurna 2 currently produces 460,000 bpd, accounting for nearly 10% of Iraq's output and 0.5% of global supply. Iraq nationalized the field earlier this year due to U.S. sanctions on its previous operator (Russia's Lukoil). The field holds an estimated 13 billion barrels of oil. Iraq has previously stated that it wants to boost production in this field to between 750,000 and 800,000 bpd after Chevron takes over operations.
Meanwhile, Chevron initially signed an agreement in principle with Iraq for the Nassiriya project in 2025, which includes four exploration blocks and the development of producing fields. Nassiriya is a much smaller field today, but it has significant long-term growth potential. Iraq is targeting an initial production capacity of 600,000 bpd for this project within seven years of starting work.
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While Iraq has several state-owned oil companies, including Basra Oil Company, which is temporarily operating West Qurna 2, it needs assistance from major global oil companies to provide the technical expertise and capital required to develop its fields to their full potential. In addition to Chevron, fellow oil giants TotalEnergies and BP have also recently signed new deals with Iraq. Meanwhile, ConocoPhillips bought an interest in BP Energy Company of Kirkuk to help support the ongoing redevelopment of four large-scale producing fields in the Kirkuk region of Northern Iraq. These deals provide major oil companies with the opportunity to invest in one of the world's largest oil-producing countries.
Lots of promise and riskWhile Iraq had been producing 4 million bpd before the U.S. and Israel launched military strikes against Iran, its output cratered after Iran retaliated by attacking ships trying to pass through the Strait of Hormuz. At one point, its production tumbled to only 1.4 million bpd.
That's leading Chevron to simultaneously evaluate bypass pipeline options. While Chevron and its partners considered rebuilding an old pipeline system damaged by previous wars, that option no longer appears plausible. As a result, they would likely need to build a new pipeline through Syria, which would cost at least $15 billion and likely take four years to build. Even if built, the new pipeline likely wouldn't have enough initial capacity to handle all of Iraq's production, especially at double its pre-war level. That would leave Chevron with meaningful exposure to potential future disruptions to the Strait of Hormuz.
A higher risk, high-reward moveChevron is working to secure commercial terms with Iraq that would give it control of one of the world's largest oil fields and another one with significant potential. It would add another major long-term growth driver for the oil giant. However, this move adds risk as Iraq currently relies almost entirely on the Strait of Hormuz to export its oil. Still, given Chevron's broad global production base, this seems worth the risk because it's such a rare opportunity to add two potentially world-class resources to its portfolio. It would enhance the long-term investment case that already makes Chevron one of the top oil stocks to buy.
Jim Cramer označil Stanley Black & Decker za sázku na renovace, protože silná poptávka po ručním nářadí u Home Depot a Lowe’s podporuje prodeje DeWalt a Black & Decker. SWK zároveň v 2Q zvýšila organické tržby o 3 % a u elektrického nářadí o 8 %.
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Jim Cramer used his Stop Trading segment on CNBC to argue that Stanley Black & Decker (NYSE:SWK | SWK Price Prediction) is a buy, connecting strong quarters from Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) to a renovation cycle. Hand tool sell-through was strong at both retailers; single-family housing starts remain weak, yet DIY buyers at Lowe’s and small contractors at Home Depot continue to pull DeWalt and Black & Decker products off the shelves.
“The renovation trade has come back on the do it yourself renovation at Lowe’s and the small contractor renovation at Home Depot are powering what I think are great sales for DeWalt, for Home Depot, and then for regular Black and Decker for Lowe’s,” Cramer said.
SWK closed at $98.85 on Thursday, down 0.95% on the day but up roughly 36% year to date. The market has partly priced in the thesis Cramer is amplifying.
What Cramer Said About the Renovation Trade Cramer frames SWK as the pick-and-shovel supplier to both big-box retailers. “Hand tools very strong for both. That’s Stanley Black and Decker SWK. I think they have to be having an unbelievable quarter,” he said.
He flagged a cleaner balance sheet from an asset sale, which meaningfully reduced leverage. The Q2 filing showed $1.7 billion in debt retired using divestiture proceeds, disclosed in the company’s 8-K exhibit.
“This may be a way to be able to play both of them because I know that they’re disparate and they’re different product lines except for when it comes to hand tools,” he added.
He stopped short of calling it a long-term position, saying, “the trade works, I really do. May develop into an investment. Frankly it’s a good place to be.”
Retailer Read-Through Only Gets You Halfway Home Depot said Q2 was a record-setting sales quarter for portable power tools, and Lowe’s plans to add over 150 new DeWalt items. That shows unit demand for SWK’s premium line.
Strong sell-through tells you what moved off shelves rather than what the supplier earned on it. SWK’s Q2 showed 3% organic revenue growth, with power tools organic revenue up 8%.
Margin benefited from a temporary source. Roughly 250 basis points of gross margin and about $0.17 of adjusted EPS came from IEEPA tariff refunds, which management has not extended into second-half guidance.
CFO Patrick Hallinan said the company keeps “dialing in promotional activity as we’ve learned more about elasticity kind of in this post-tariff high inflation environment.” A tool maker can post good volume while promotional cadence squeezes contribution margin.
Why the Composition of Demand Matters More Than the Level The durable part of the thesis is the mix. Renovation and repair spending is funded from home equity and cash flow, so it does not depend on housing turnover. Home Depot management described the housing market as frozen, noting that turnover had been at historically low levels for four years with no clear inflection point. Even so, 13 of 16 merchandising departments posted positive comparable sales.
Lowe’s described steady Pro backlogs alongside cautious homeowners choosing smaller repair and maintenance projects. That mix favors a tool supplier because tools are consumables on a work cycle.
The professional channel is the higher-quality half of the story. SWK’s U.S. commercial and industrial channel grew low double digits, and Chris Nelson described “DeWalt, which continues to lead as our growth engine focused on the pro.”
Trade or Investment: How to Frame the Setup Cramer hedged on duration, and that hedge is right. The current setup looks like a catalyst-driven trade with a cleaner balance sheet underneath, and the compounder case still needs to be earned.
Valuation reflects some of that already. Trailing PE is near 24x, forward PE is closer to 18x, and the analyst consensus target of $99.36 is essentially at the current quote.
Income is real support. The forward dividend is $3.36 annualized, with the payout raised to $0.84 for the September payment, backed by higher free cash flow guidance of $600 million to $800 million.
The risk is that the tariff refund fades, Europe stays soft, and a promotional consumer keeps pressuring pricing even as unit demand holds. Cramer’s read-through is directionally right. For readers weighing the name, the professional channel and the repair-and-maintenance mix are the parts worth underwriting while the housing recovery remains on hold.
Contact [email protected] for any questions or corrections.
T-Mobile ve 2. čtvrtletí zvýšil tržby ze služeb o 9 % na 19,0 mld. USD a tržby z postpaid služeb o 13 % na 15,9 mld. USD. Více než 60 % nových zákazníků volí prémiové tarify.
Key Takeaways T-Mobile's service revenues rose 9% to $19.0B, while postpaid service revenues jumped 13% to $15.9B.More than 60% of customers on new accounts are choosing premium tiers, supporting ARPA growth.T-Mobile's focus on network quality and customer experience is helping drive acquisition and retention. T-Mobile, US, Inc. (TMUS - Free Report) is benefiting from sustained momentum in its service business. In the second quarter of 2026, total service revenues increased 9% year over year to $19 billion, while postpaid service revenues jumped 13% to $15.9 billion.
A major contributor is the continuous expansion of T-Mobile’s postpaid account base. Postpaid accounts reached 34.7 million in the second quarter, up from 31.5 million a year earlier. The acquisitions of UScellular and Metronet have also increased the number of customers. The company also reports that postpaid average revenue per account rose to $152.91, up 2% year over year. There are several factors driving the ARPA. Continued adoption of 5G broadband is raising customers per account. Its business vertical is benefiting from the growing demand for 5G Advanced networks and associated enterprise solutions.
Another positive factor is customer migration toward higher-value plans. Management said more than 60% of customers on new accounts are selecting premium rate-plan tiers. This is also supporting ARPA growth.
The company’s strong focus on improving network and customer experience remains an important driver for customer acquisition and retention. Its customer-centric approach is also evident from the company’s recent disaster response efforts. It has proactively deployed network resources, backup power and connectivity solutions to support its customers during harsh weather conditions. Such initiatives can strengthen customer trust and boost retention. These factors are driving the service revenue growth.
How Are Competitors Faring?The company faces competition from AT&T, Inc. (T - Free Report) and Verizon Communications, Inc. (VZ - Free Report) . In the second quarter of 2026, AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net adds and 432,000 postpaid phone net adds. Advanced home Internet revenues rose 27.3% year over year, and 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan. AT&T continues to invest in fiber and fixed wireless to expand advanced Internet reach and deepen household convergence with wireless.
Verizon continues to broaden its addressable market through fiber expansion and broadband growth, while strengthening convergence opportunities. In second-quarter 2026, Verizon added 348,000 broadband subscribers, including continued contributions from fixed wireless access and fiber, increasing total fixed wireless access and fiber broadband connections to approximately 17.1 million.
TMUS’ Price Performance, Valuation & EstimatesT-Mobile has declined 28% over the past year against the industry’s growth of 74.7%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 14.68, lower than the 37.54 for the industry.
Image Source: Zacks Investment Research
TMUS’ earnings estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
T-Mobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cash App od společnosti Block ve 2. čtvrtletí 2026 zvýšil hrubý zisk o 31 % na 1,97 miliardy USD. Růst táhly Financial Solutions (+43 %) a Cash App Borrow, jehož objem vzrostl o 59 % na 18,9 miliardy USD.
Key Takeaways Cash App gross profit rose 31%, led by 43% growth in Financial Solutions.Block's Cash App Borrow origination volume surged 59% to $18.9 billion.Cash App's monetization rate improved to 1.65% as inflows per active rose 9%. Block (XYZ - Free Report) delivered a strong performance in the second quarter of 2026, with Cash App generating $1.97 billion in gross profit, up 31% year over year. The growth was driven mainly by Financial Solutions, up 43%, while Commerce Enablement increased 18%. Monthly transacting actives grew only 3%, indicating that Cash App's performance is driven by deeper customer engagement rather than rapid user growth. Primary Banking Actives rose 17%, while inflows per active increased 9%, highlighting engagement.
A major contributor was Cash App Borrow, with Consumer Lending origination volume increasing 59% year over year to $18.9 billion. Commerce Enablement volume also rose 17% to $56.5 billion, supported by Cash App Card and Afterpay BNPL. The monetization rate improved from 1.53% to 1.65%, demonstrating that Cash App is generating more value from its existing customer base.
However, sustaining growth will not be without challenges. Management expects Borrow growth to normalize as Block faces tougher comparisons, while loan-related losses have increased with higher lending volumes. Bitcoin Ecosystem gross profit declined, and Cash App sales and marketing expenses increased 28%. These factors highlight the need for Block to diversify its growth drivers while maintaining profitability.
The long-term outlook remains positive as Block continues to build a diversified Cash App ecosystem across Card, BNPL, primary banking, Cash App Pay, Neighborhoods, families and teens products, Tags and Cash App Mobile. With avenues to deepen engagement, increase product adoption and expand monetization, Block has the potential to sustain healthy growth. The key will be converting customer relationships into financial activity.
How Are Block’s Competitors Faring?PayPal’s (PYPL - Free Report) revenues increased 5% to $8.7 billion in the second quarter of 2026, while total payment volume (TPV) grew 10% to $486.4 billion. Venmo TPV was particularly strong, increasing 14% year over year, while transactions per active account rose 3%. PayPal also raised its full-year 2026 outlook, reflecting improving momentum across Venmo, Braintree and financial services.
SoFi (SOFI - Free Report) also delivered strong growth in second-quarter 2026, reporting record net revenues of approximately $1.2 billion and net income of $157 million. The company continued to benefit from strong member and product growth, supported by its integrated digital-financial-services platform.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 17.6% over the past three months, which outperformed the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.02X, which is at a discount to the Zacks Internet Software industry’s 27.33X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Globe Life ve 2. čtvrtletí 2026 zvýšila upravený čistý zisk z provozu na akcii na 3,61 USD, ale za odhady zaostala. Firma zároveň zvedla celoroční výhled na 15,55–15,95 USD na akcii.
It has been about a month since the last earnings report for Globe Life (GL - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Globe Life due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Globe Life Inc. before we dive into how investors and analysts have reacted as of late.
Globe Life Q2 Earnings Miss Estimates on Escalating Expenses
Globe Life Inc. reported second-quarter 2026 net operating income of $3.61 per share, which missed the Zacks Consensus Estimate of $3.67 by 1.6%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income. The quarter benefited from higher premium revenues, stronger insurance underwriting income, and increased investment income. Higher premium revenues reflected continued strength across the company’s life and health insurance businesses.
GL Benefits From Premium Growth Across Insurance BusinessTotal premium revenues increased 7% year over year to $1.30 billion. Life insurance premiums rose 3% to $860.8 million, while health insurance premiums climbed 16% to $436.9 million, supported by strong growth at United American and Family Heritage. Operating revenues increased 8% year over year to $1.60 billion, driven by higher premium income, stronger net investment income and realized investment gains. The top line surpassed the Zacks Consensus Estimate by 0.6%.
Globe Life Posts Higher Underwriting and Investment IncomeInsurance underwriting income increased 5% year over year to $370.3 million. Life underwriting income rose 6% to $359.4 million, while health underwriting income edged up 1% to $99.3 million. Net investment income rose 4% year over year to $293.8 million. Excess investment income, a key profitability measure, rose 10% to $38.3 million as higher investment income more than offset increased required interest on policy liabilities.
Administrative expenses were up 6.2% year over year to $91.4 million.
Total benefits and expenses increased 6.5% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, interest expense and other operating expense.
GL's Distribution Channels Deliver Mixed ResultsLife insurance premium growth was led by the American Income division, where premiums increased 5% year over year to $466.3 million. Liberty National premiums rose 3%, while Direct to Consumer premiums slipped 1%. Overall life net sales declined 3% to $149.6 million as weaker Direct to Consumer sales more than offset Liberty National's gains.
Health insurance continued to outperform. United American health premiums surged 29% year over year to $211.4 million, while Family Heritage premiums increased 9%. Total health net sales improved 2% to $70.4 million, supported by double-digit growth at United American despite softer performance at Liberty National and American Income.
Globe Life Strengthens Capital PositionBook value per share increased 18% year over year to $78.18. Excluding accumulated other comprehensive income (AOCI), book value per share rose 11% to $100.04. Net income return on equity was 18.4% for the first six months of 2026, down 40 basis points year over year. Net operating income return on equity, excluding AOCI, was 14.3%, down 10 basis points year over year. During the reported quarter, Globe Life repurchased 1.1 million shares for $175 million at an average price of $154.28 per share, continuing its shareholder return strategy.
GL Raises 2026 Earnings OutlookGlobe Life raised its full-year 2026 net operating income guidance to a range of $15.55-$15.95 per share, suggesting a 10-cent increase at the midpoint from its prior outlook.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresCurrently, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second 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. Interestingly, Globe Life has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Moody’s za poslední měsíc vzrostl o 5,6 % po silných výsledcích za 2. čtvrtletí, když upravený EPS dosáhl 4,68 USD a tržby 2,19 miliardy USD. Firma zároveň potvrdila celoroční růst tržeb v horní jednociferné procentní oblasti.
It has been about a month since the last earnings report for Moody's (MCO - Free Report) . Shares have added about 5.6% 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 Moody's 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 catalysts for Moody's Corporation before we dive into how investors and analysts have reacted as of late.
Moody's Q2 Earnings Beat on Rising Analytics Demand & Higher IssuancesMoody's reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.
The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.
After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $3.21 per share, in the prior-year quarter.
Revenues Improve, Costs RiseQuarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year.
Total expenses were $1.14 billion, up 5% year over year.
Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago.
Strong Quarterly Segment PerformanceMoody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based performance across all lines of business
Moody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information.
Solid Balance SheetAs of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $2.45 billion as of Dec. 31, 2025.
The company had $6.38 billion in outstanding long-term debt.
Share Repurchase UpdateIn the first half of 2026, MCO repurchased $2.2 billion worth of shares.
2026 GuidanceMoody’s expects adjusted earnings in the range of $16.50-$17.00 per share, slightly narrower than the prior target range of $16.40-$17.00 per share.
GAAP earnings are projected to be the band of $16.00-$16.50 per share, changed from the prior target of $16.00-$16.60 per share.
Moody’s projects revenues to increase in the high-single-digit percent range.
Operating expenses are expected to be in the mid-single-digit range. Non-operating income is projected to be between $70 million and $90 million.
Net interest expenses are anticipated to be $220-$240 million.
The adjusted operating margin is expected to be 52-53%, while the operating margin is likely to be 44%- 45%.
Moody’s expects the cash flow from operations to be $3.15-$3.35 billion. The free cash flow is projected to be in the $2.7-$2.9 billion range.
The effective tax rate is projected to be 23-25%.
2026 Segment GuidanceMIS segment revenues are expected to increase in the high-single-digit range. The adjusted operating margin is expected to be roughly 65%.
Coming to the MA segment, Moody’s anticipates revenues to rise in the mid-single-digit range, while Annualized Recurring Revenue (ARR) is expected to increase in the high-single-digit range. Further, an adjusted operating margin is expected to be 34-35%.
Strategic and Operational Efficiency Restructuring ProgramIn December 2024, Moody’s CEO approved a Strategic and Operational Efficiency Restructuring Program aimed at improving efficiency and focusing on growth areas. The initiative is expected to generate annual savings of $250–$300 million by consolidating functions, reducing staff, exiting leased office spaces and retiring legacy software. The program involves $170–$200 million in pre-tax personnel-related restructuring charges and an additional $30–$50 million in non-cash charges. It is projected to strengthen operating margins and support strategic investments, with substantial completion by the end of 2026 and related cash outlays (to be between $210-$230 million) continuing through 2027.
Moody’s expanded its Strategic and Operational Efficiency Restructuring Program in July 2026, targeting $300–$350 million in annualized savings. The program focuses on workforce reductions, office consolidation, legacy software retirement, and exits from certain businesses, including the MA Regulatory Solutions divestiture. Moody’s expects $285–$330 million in personnel-related restructuring charges, plus modest non-cash charges related to office exits and software amortization. The program is expected to be substantially completed by end-2027, with cash outlays continuing through 2028. Savings are expected to support margin expansion and strategic investments.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.
VGM ScoresCurrently, Moody's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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, Moody's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMoody's belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Synchrony (SYF - Free Report) , has gained 6.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Synchrony reported revenues of $4.61 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $2.59 for the same period compares with $2.50 a year ago.
For the current quarter, Synchrony is expected to post earnings of $2.38 per share, indicating a change of -16.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of B.
TSMC zvýšila plán kapitálových výdajů na rok 2026 na 60–64 mld. USD a chystá dalších 100 mld. USD do Arizony. Dividenda má v roce 2026 vzrůst na 24 TWD na akcii, meziročně o 33 %.
Key Takeaways TSMC raises 2026 CapEx to $60B-$64B, with most targeting advanced process technologies.TSMC plans an additional $100B Arizona investment spanning fabs and advanced packaging.TSMC expects its 2026 dividend to rise to TWD 24 per share, up 33% year over year. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, continues to see strong structural demand from customers, as the use of 5G, artificial intelligence (AI) and high-performance computing (HPC) rapidly expands. The emerging Agentic AI market adds further growth opportunities, prompting the company to continue investing to support its customers’ growth. Reflecting this, management raised the 2026 capital expenditure (CapEx) budget to $60 billion-64 billion from the April guidance of $52-56 billion.
TSMC plans to direct about 70%-80% of its 2026 capital spending toward advanced process technologies. Specialty technologies will receive about 10%, while advanced packaging, testing, mask-making and other areas will account for another 10%-20%.
The company is also expanding its presence in Arizona with an additional $100 billion investment. The plan includes several wafer fabs for 2-nanometer and below technologies as well as advanced packaging fabs. TSMC expects the investment to strengthen the U.S. semiconductor ecosystem and supply chain while supporting high-tech jobs. In Taiwan, the company plans to build 13 leading-edge and advanced packaging fabs over the next several years.
At the same time, the company is focused on steadily increasing its cash dividend on both an annual and quarterly basis. In 2025, TSMC paid New Taiwan Dollar (TWD) 467 billion in cash dividends, with shareholders receiving TWD 18 per share, up 28.6% year over year. In 2026, the dividend is expected to increase to TWD 24 per share, up another 33% year over year.
TSM’s Peer UpdatesGlobalFoundries (GFS - Free Report) spent $408 million on capital expenditures in the second quarter, net of proceeds from government grants, or roughly 23% of revenue. Management expects full-year CapEx to come in toward the higher end of its 15%-20% range, with investments in additional capacity expected to support growing demand. At the second quarter of 2026-end the company’s cash, cash equivalents and marketable securities totaled approximately $3.3 billion. On July 14, GlobalFoundries paid its first-ever quarterly cash dividend of $0.12 per share, reflecting confidence in its future cash-generating capacity.
Intel (INTC - Free Report) is raising its 2026 CapEx outlook on strong customer demand signals and now expects spending to exceed $20 billion, significantly above its initial expectations for the year. The company is also moving quickly to secure tool purchase orders from vendors, accelerate clean room build-outs and secure supplies of substrates and memory. The vast majority of 2027 capital spending is expected to go toward its U.S. network. Management stated that from 2021 through 2026, the company’s total spending on tools and space in the United States is approaching $100 billion, significantly more than any other semiconductor company over that period.
The Zacks Rundown for TSM StockOver the past 12 months, TSMC shares have rallied 78.5% compared with the industry’s 76.8% growth.
Image Source: Zacks Investment Research
TSM currently trades at a forward, five-year Price/Sales (P/S) of 10.90X compared with its historical median of 8.12X and the industry average of 10.81X.
Image Source: Zacks Investment Research
TSMC’s 2026 and 2027 earnings estimates have seen upward revisions over the past 90 days.
Image Source: Zacks Investment Research
TSMC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It has been about a month since the last earnings report for Texas Instruments (TXN - Free Report) . Shares have lost about 6.8% 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 Texas Instruments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Texas Instruments Q2 Earnings Beat Estimates, Revenues Rise Y/YTexas Instruments reported second-quarter 2026 earnings of $2.14 per share, which increased 52% year over year. The bottom line beat the Zacks Consensus Estimate by 12%.
TXN posted revenues of $5.46 billion, which rose 23% from the year-ago quarter. The top line surpassed the consensus mark by 4.6%, driven by strength in industrial, data center and automotive markets.
TXN’s Segment Mix Highlights Broad-Based GrowthTexas Instruments’ second-quarter results reflected strength across its two core operating segments.
Analog revenues came in at $4.37 billion (79.9% of total revenues), which grew 26% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $4.08 billion.
Embedded Processing revenues totaled $788 million (14.4% of total revenues), reflecting 16.1% year-over-year growth. The figure missed our model estimate of $799.1 million.
The Other segment generated $310 million of revenues (5.7% of total revenues), which declined 2.2% from the prior-year period. The figure missed our model estimate of $328.5 million.
Texas Instruments Expands Operating LeverageTexas Instruments’ gross profit increased 30% year over year to $3.35 billion. Gross margin of 61.4% expanded 350 basis points (bps) year over year.
Selling, general and administrative (SG&A) expenses increased 1% year over year to $490 million. As a percentage of revenues, SG&A expenses contracted 190 bps year over year to 9%.
Research and development expenses increased 1.5% year over year to $535 million. As a percentage of revenues, it decreased 210 bps year over year to 9.8%.
Operating profit rose 47.8% year over year to $2.31 billion. The operating margin was 42.3%, which expanded 710 bps from the prior-year quarter’s number.
TXN Cash Generation Supports Shareholder ReturnsAs of June 30, 2026, the cash and short-term investment balance was $7 billion, up from $5.1 billion as of March 31, 2026.
At the end of the reported quarter, TXN’s long-term debt was $12.903 billion compared with $12.901 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $2.7 billion in the second quarter. During the second quarter, it repurchased stocks worth $27 million and paid $1.295 billion in dividends.
Texas Instruments Initiates Guidance for Q3 2026Management’s outlook calls for third-quarter 2026 revenues in the range of $5.65-$6.15 billion.
The company expects an effective tax rate of about 13% in the third quarter. Texas Instruments expects earnings per share between $2.23 and $2.57.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 14.26% due to these changes.
VGM ScoresAt this time, Texas Instruments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% 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 Texas Instruments has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
ServiceNow za poslední měsíc přidala asi 41,1 % po silných výsledcích za 2. čtvrtletí, kdy tržby vzrostly o 24 % na 3,99 miliardy USD. Firma zároveň zvýšila výhled tržeb z předplatného na rok 2026.
A month has gone by since the last earnings report for ServiceNow (NOW - Free Report) . Shares have added about 41.1% 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 ServiceNow due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
NOW Q2 Earnings Beat Estimates, Revenues Rise Y/YServiceNow reported second-quarter 2026 earnings of 90 cents per share, up 11.1% year over year. The figure beat the Zacks Consensus Estimate by 4.65%.
Revenues of $3.99 billion rose 24% year over year and surpassed the consensus mark by 1.65%. Results benefited from strong subscription demand, while current remaining performance obligations (cRPO) reached $13.20 billion.
NOW Gains From Broad Subscription MomentumSubscription revenues increased 24.5% year over year to $3.88 billion. At constant currency (cc), subscription revenues rose 23%, 150 basis points (bps) above the high end of management’s guidance.
Professional services and other revenues advanced 8.5% to $110 million.
ServiceNow attributed the subscription outperformance to stronger net new annual contract value (NNACV) and a higher on-premise revenue mix, primarily from U.S. federal demand that shifted some revenues from the third quarter into the second quarter.
ServiceNow Builds Backlog and Expands Large DealsIn the second quarter of 2026, cRPO, or contracted revenues expected to be recognized within 12 months, grew 21% year over year. At cc, the metric increased 21.5%, exceeding guidance by 200 bps. Total remaining performance obligations (RPO) rose 21% year over year to $29 billion, or 22% at cc.
NOW recorded 123 transactions exceeding $1 million in NNACV, up nearly 40% year over year. The company ended the quarter with 658 customers generating more than $5 million in annual contract value, an increase of roughly 23%.
NOW’s AI and Workflow Portfolio Gains TractionServiceNow AI annual contract value crossed $1 billion. Net new AI annual contract value grew more than 40% sequentially, while deals containing at least five ServiceNow AI products increased 5.5 times year over year. The number of customers with Agentic AI in production expanded ninefold over the past nine months.
Demand was broad across workflows. ITSM appeared in 15 of the top 20 deals, ITOM in 18 and security and risk solutions in 16. CRM and industry workflows were also included in 16 of the top 20 deals, supported by momentum in configure-price-quote and sales and order management.
ServiceNow’s Operating DetailsNon-GAAP total gross margin was 78%, down from 81% a year earlier. Subscription gross margin contracted 250 bps to 80.5%.
Non-GAAP operating income rose 22.8% year over year to $1.17 billion. Operating margin was unchanged at 29.5% and came in 300 bps above guidance due to revenue outperformance and the timing of spending, mainly in marketing.
NOW Generates Cash and Maintains LiquidityServiceNow ended the second quarter of 2026 with $2.50 billion in cash and cash equivalents. Current and long-term marketable securities totaled $4.20 billion.
Net cash provided by operating activities was $587 million, compared with $716 million in the year-ago quarter. Free cash flow increased to $634 million from $535 million, while free cash flow margin slipped 50 bps to 16%.
ServiceNow Raises 2026 Subscription OutlookFor the third quarter of 2026, NOW expects subscription revenues between $3.975 billion and $3.980 billion, implying 20.5% year-over-year growth and 20% growth at cc. cRPOs are projected to increase 19.5%, or 20% at cc. Non-GAAP operating margin is expected to be 31%.
For 2026, ServiceNow raised its subscription revenue guidance to $15.76-$15.78 billion from $15.735-$15.775 billion. The midpoint increased by $15 million. The updated range represents 22.5% year-over-year growth and 21% growth at cc.
The company continues to expect an 81% non-GAAP subscription gross margin, a 31.5% non-GAAP operating margin and a 35% free cash flow margin for 2026.
ServiceNow noted that stronger AI adoption and greater use of hyperscaler partnerships are reflected in the gross-margin outlook.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.01% due to these changes.
VGM ScoresAt this time, ServiceNow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise ServiceNow has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Intuit ve 3. čtvrtletí fiskálního roku 2026 zvýšila tržby divize Consumer o 8 % na 5,27 miliardy USD díky TurboTax a Credit Karma. Zákazníci využívající obě služby mají asi o 30 % vyšší ARPU.
Key Takeaways Intuit's Consumer revenues rose 8% to $5.27 billion, led by growth in TurboTax and Credit Karma.Customers using both TurboTax and Credit Karma generate about 30% higher average revenue per user.INTU expects consumer money revenues to grow 26%, expanding opportunities across multiple financial products. Intuit Inc. (INTU - Free Report) is reshaping its Consumer business into a year-round financial platform by linking TurboTax, TurboTax Live, Credit Karma and consumer money products. The goal is to deepen engagement and monetize customers across multiple financial needs rather than relying mainly on seasonal tax preparation. The strategy is gaining traction with customers using both TurboTax and Credit Karma generating about 30% higher average revenue per user (ARPU) than TurboTax-only customers.
Consumer revenues reached $5.27 billion in the fiscal third quarter of 2026, up 8% year over year. TurboTax revenues rose 7% to $4.36 billion, while Credit Karma increased 15% to $631 million. Intuit expects TurboTax ARPU to rise about 11% in fiscal 2026, supported by greater use of assisted offerings and faster refund access. TurboTax Live revenues are expected to grow 36% to $2.8 billion.
Credit Karma is also strengthening the flywheel. Tax filers starting through Credit Karma increased 54%, while more than 35% of TurboTax customers are adopting fast-money offerings. Intuit expects consumer money revenues to grow 26%, expanding monetization opportunities through loans, credit cards, insurance and other financial products.
The strategy may also help address pricing pressure among lower-income DIY tax customers through value-based pricing and lower-cost tax options. However, Consumer operating income grew 5.5%, slower than revenues, partly because of higher marketing and sales expenses. The key test is whether stronger cross-selling can lift lifetime value enough to offset weaker low-end volumes and rising costs, while preserving healthy long-term operating margins.
How are Intuit’s Competitors Faring?H&R Block (HRB - Free Report) is a direct competitor to Intuit’s TurboTax franchise through digital and assisted tax preparation. In fiscal 2026, HRB generated $3.95 billion in revenues, up 4.9%, while net income from continuing operations rose 20.8% to $736.3 million. Adjusted EPS increased 13.9% to $5.31. For FY2027, HRB expects revenues of $4.11–$4.16 billion and adjusted EPS of $6.04–$6.24.
Sage Group (SGPYY - Free Report) competes with Intuit’s QuickBooks business in accounting, payroll and financial-management software for small and mid-sized businesses. In the first half of 2026, Sage reported £1.36 billion in underlying revenues, up 11%, and underlying operating profit of £326 million, up 15%. Its underlying operating margin improved to 23.9%, while annualized recurring revenues reached £2.73 billion, up 11%.
INTU’s Price Performance, Valuation and EstimatesShares of Intuit have gained 13.1% over the past three months, outperforming the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 4.13X, which is at a discount to the industry average of 6.11X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent to $23.85 over the past month. The consensus estimate for 2026 calls for 18.4% growth year over year.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet prodloužil spolupráci s Marvell na TPU, což poslalo akcie Marvell nahoru a Broadcom dolů. Broadcom ale zůstává hlavním designovým partnerem Alphabetu pro TPU a podle článku vypadá jako lepší koupě.
Shares of Marvell Technology (MRVL -6.50%) shot higher following the news this week that Alphabet (GOOGL +1.30%) (GOOG +1.27%) would extend a partnership with Marvell related to its tensor processing units (TPUs). Meanwhile, Broadcom (AVGO +0.54%), which is Alphabet's main design partner for TPUs, saw its shares sink on the announcement.
As part of the deal, Marvell will provide Alphabet with a variety of components within its TPU architecture. These include things like AI inference accelerators, storage controllers, network interface controllers (NICs), and near-memory compute. In return, Marvell has given Alphabet warrants to buy 58.97 million shares of its stock at a price of $206.65 per share. The warrants vest in tranches based on every $500 million the cloud computing and search giant spends with it.
Despite the deal, Broadcom still looks like the better buy among these two semiconductor stocks.
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Broadcom helped Alphabet develop its TPUs more than a decade ago, and it has been the company's main chip design partner ever since. Earlier this year, it signed a contract with the company to remain its primary design partner through 2031. The two companies also later agreed to a deal to supply Anthropic with TPUs, as well.
The Marvell deal will not impact this, but Alphabet has clearly been adding other partners to its TPU ecosystem. For upcoming TPU iterations, the company has already decided on two versions of its chips, with one for high-performance training and another version for inference. Broadcom is the main partner for the former, while MediaTek has taken the lead for the inference chips. Given the components involved, Alphabet's deal with Marvell should impact MediaTek more than Broadcom.
It's also been rumored that Alphabet is working with Advanced Micro Devices, capitalizing on its central processing unit (CPU) expertise for another future TPU version for agentic AI workloads. If true, Alphabet is looking to really broaden its TPU ecosystem. That ultimately should be good for Broadcom, as it is still a major supplier of networking components, like high-bandwidth Ethernet and optical interconnects.
At the same time, Broadcom still has a huge TPU opportunity in front of it, and it is helping other major AI data center players including Meta Platforms and OpenAI to develop their own custom chips. Broadcom management expects its custom chip business to contribute over $100 billion in revenue in fiscal 2027, and anticipates that business continuing to grow strongly in the year to come.
Trading at a forward P/E of around 18.5 times fiscal 2027 estimates, Broadcom stock looks like a bargain given its expected growth.
Image source: The Motley Fool
Marvell
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234.70
Marvell has been one of the hottest large-cap tech stocks in the market over the past year, with its shares more than tripling. However, its performance has largely been due to excitement around its connectivity business, as optical interconnects are starting to replace copper wires within AI data centers. It projects its interconnect revenue will surge 70% this year, with overall revenue climbing 40%.
The company's custom chip business has also been strong, largely due to its role in Amazon's Trainium chips. However, there has been speculation that it will lose its lead role with Amazon to Taiwanese semiconductor company AIchip in future iterations. This deal with Alphabet, along with one with Microsoft for its new Maia chip, could help replace any lost Amazon revenue or compensate for reduced growth elsewhere.
Marvell is a solid stock, and the company's optical interconnect business should continue to see strong growth. However, the stock reached a pretty frothy valuation, trading at a forward P/E ratio of 57.5 and 37 times next year's expected earnings.
With Broadcom trading at a much cheaper valuation and still anticipating strong growth that should not be materially impacted by the Marvell-Alphabet agreement, the stock looks like the better buy in my view.
Geoffrey Seiler has positions in Advanced Micro Devices, Alphabet, Amazon, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Broadcom, Marvell Technology, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
Broadcom oznámil ve 2. čtvrtletí zakázky v oblasti AI za více než 30 miliard USD a cílí na tržby z AI přes 100 miliard USD v roce 2027. Tržby ve 2. čtvrtletí stouply na 22,19 miliardy USD a tržby z AI polovodičů na 10,80 miliardy USD.
Broadcom (NASDAQ:AVGO | AVGO Price Prediction) has become the second most consequential AI infrastructure story on the market, powered by $30 billion in quarterly AI bookings and management’s stated goal to exceed $100 billion in AI sales by 2027. With shares trading at $364.50, the question is whether the AI numbers justify a run back to the highs, or something bigger.
Our 24/7 Wall St. price target for Broadcom is $403 over the next 12 months, with a bull scenario reaching $531.88. That is a buy rating with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $364.50 24/7 Wall St. Price Target $403 Upside 10.65% Recommendation BUY Confidence Level 90% Why AVGO Just Slid 13% in a Week Broadcom is down 12.88% over the past week and 4.15% over the past month, though shares remain up 23.81% over the past year and up 737.96% over five years.
The pullback follows a strong Q2 FY2026 report. Revenue hit $22.19 billion, up 47.87% year over year, with AI semiconductor revenue reaching $10.80 billion, up 143%. Non-GAAP EPS of $2.44 extended an eight-quarter EPS beat streak.
Management guided Q3 revenue to approximately $29.4 billion, up 84% year over year. Shares traded off, reflecting valuation digestion at 60x trailing earnings.
Why Bulls See a Path to $530 and Beyond The bull case is straightforward. Broadcom booked over $30 billion in AI semiconductor orders in Q2 against $10.8 billion shipped, and CEO Hock Tan called demand for XPUs and networking “simply insatiable.”
Management expects $56 billion of fiscal 2026 AI revenue, then in excess of $100 billion in fiscal 2027, with visibility extending into 2028. A $35 billion first tranche of a planned 20-gigawatt AI XPV platform with Apollo and Blackstone amplifies the addressable pipeline.
All of that hyperscaler buildout has to be powered, cooled, and networked by somebody, and we pulled together seven suppliers doing exactly that in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
Analysts lag. Seven Strong Buy and 37 Buy ratings point to a $527.88 consensus, and Polymarket assigns a 75% probability that Q3 AI revenue will exceed $16 billion. A rerating to 30x forward EPS of $12 would put AVGO north of $360 on 2026 numbers alone. Doubling from here requires 2027 EPS closer to $20 at a similar multiple, which the $100 billion AI trajectory arguably supports.
What Could Derail the Setup Concentration is the sharpest risk. A handful of hyperscalers, including Google, Meta, OpenAI, and Anthropic, drive Broadcom’s XPU roadmap, and Google is expected to maintain diversity of sources.
Consolidated gross margin is expected to compress to approximately 74% as semiconductor mix rises, though management stressed the shift “does not represent a structural change in semiconductor margin.”
Reddit sentiment on wallstreetbets has turned bearish, and insider activity is net selling. A bear-case pullback to $358.80 is our downside anchor.
How Broadcom Compares to NVIDIA and Marvell NVIDIA (NASDAQ:NVDA) is the general-purpose GPU incumbent Broadcom’s custom XPUs are designed to undercut for hyperscale-specific workloads. NVIDIA’s Q1 FY2027 revenue reached $81.61 billion, up 85.2%, at a trailing P/E of 44. That multiple sits below Broadcom’s 60x trailing figure. However, Broadcom trades at a forward P/E of 20, which is cheaper than NVIDIA on forward earnings and supports our target.
Marvell Technology (NASDAQ:MRVL) is Broadcom’s most direct rival in custom AI silicon and AI networking optics. Marvell posted Q1 FY2027 revenue of $2.42 billion, up 27.6%, well below Broadcom’s 47.9% growth rate. Broadcom’s superior growth, margins, and customer roster make our $403 target look conservative against the peer set.
Broadcom Price Prediction 2026-2030 My verdict is a buy with 90% confidence and a 24/7 Wall St. price target of $403. The scale tips on AI booking visibility extending through 2028. I would add here if Q3 delivers on the $16 billion AI number. I would stay patient if gross margin compression accelerates faster than semiconductor mix warrants.
Year 24/7 Wall St. Price Target 2026 $403 2027 $455 2028 $495 2029 $515 2030 $525 These projections assume Broadcom executes on the $100 billion AI target and completes VMware’s subscription conversion. Faster hyperscaler XPU adoption could pull the bull case forward.
Contact [email protected] for any questions or corrections.
Stryker ve 2. čtvrtletí zvýšil organické tržby o 9 % díky růstu v segmentech MedSurg, Neurotechnology a Orthopaedics. Mako už má přes 2,5 milionu výkonů a rozšiřuje se do ramen a RPS.
Key Takeaways SYK delivered 9% organic sales growth in Q2, with strength across MedSurg, Neurotechnology and Orthopaedics.Mako adoption is expanding, with more than 2.5 million procedures and launches in shoulders and RPS.Cybersecurity and supply disruptions remain risks, while temporary tariff benefits complicate margin gains. Stryker (SYK - Free Report) entered 2026 facing an unexpected cyber disruption, yet underlying demand, robotics adoption and international momentum remained strong. While a robust capital pipeline and active acquisition strategy support long-term growth, execution risks tied to recovery efforts, margin pressures and expanding exposure to new markets could shape the company’s performance over the coming quarters.
This Zacks Rank #3 (Hold) company’s shares have lost 6.7% so far this year compared with the industry’s 15.2% decline. The S&P 500 Index has appreciated 11.2% in the same time frame.
Stryker is a global leader in medical technology with a portfolio spanning Orthopaedics, MedSurg and Neurotechnology. The company has a market capitalization of $125.7 billion.
SYK’s bottom line is anticipated to improve 10.4% over the next five years. Its earnings beat estimates in three of the trailing four quarters and missed once, delivering a negative average surprise of 0.73%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Factors Driving SYK’s ProspectsBroad-Based Organic Growth Demonstrates Strong Underlying Demand: Stryker delivered 9% organic sales growth in the second quarter of 2026, with both MedSurg & Neurotechnology and Orthopaedics posting high-single-digit growth. MedSurg & Neurotechnology increased 9.2%, led by strong performances in Instruments, Endoscopy and Medical, while Orthopaedics grew 8.6%. International sales also remained robust at 8.9%, supported by markets including Australia, Germany, Canada, India and Brazil. The breadth of growth is particularly encouraging because it indicates that demand remains resilient across multiple procedure categories rather than being concentrated in a single product franchise. This provides Stryker with a solid foundation for sustaining its 2026 growth outlook.
Mako Robotics Continues to Expand Competitive Advantage: Mako remains a critical growth engine for Stryker, with more than 2.5 million procedures performed globally and systems installed across 47 countries. U.S. knee sales increased 6.2%, supported by continued Mako adoption, while Ortho Tech grew 9.2% on robust Mako installations. The full commercial launch of Mako Shoulder and Mako RPS further expands the platform's addressable procedure base and strengthens Stryker's ability to compete across knees, hips and shoulders. As robotic-assisted surgery gains acceptance, the installed base should create recurring opportunities for implants, instruments and capital equipment, reinforcing Stryker's ecosystem-based competitive moat.
Margin Expansion and Cost Discipline Encouraging: Stryker's second-quarter performance showed meaningful operating leverage, with adjusted EPS rising 17.9% to $3.69. Adjusted gross margin expanded 60 basis points to 66%, and adjusted operating margin increased 170 basis points to 27.4%. Management attributed the improvement to favorable business mix, cost discipline and lower SG&A as a percentage of sales. This is important because the company continues to absorb costs associated with cybersecurity remediation and manufacturing recovery. Stronger margins suggest that Stryker's operational initiatives are offsetting some of these temporary expenses. If revenue momentum persists, incremental sales should increasingly flow through earnings, supporting management's full-year EPS outlook of $14.95-$15.10.
DownsidesCybersecurity Incident Continues to Impact Performance: Although Stryker has largely recovered from its cybersecurity incident, the event continues to weigh on 2026 financial performance. The disruption temporarily shut manufacturing facilities, resulting in lost production absorption and idle costs. Management also expects continued spending on cybersecurity remediation and stabilization throughout the year. The company acknowledged that these costs contribute to a wider EPS guidance range and could limit earnings conversion despite strong revenue growth. While production has been ramped and management believes the recovery is progressing, the episode demonstrates the vulnerability of a highly integrated global manufacturing network. Any additional disruption or slower-than-expected normalization could create further costs, supply constraints and pressure on margins.
Peripheral Vascular Supply Disruptions Are Limiting Near-Term Growth: Stryker's Peripheral Vascular business remains a significant near-term weakness following a supply disruption at a manufacturing facility supporting the Inari portfolio. The issue created a meaningful backlog and resulted in lost sales during the second quarter, offsetting otherwise strong U.S. growth. Management expects backorders to reach manageable levels by the end of the third quarter, but the disruption highlights execution risks within a strategically important growth market. Importantly, management estimated the shortfall was meaningful enough to potentially represent roughly 50-75 basis points of organic growth drag. Until production normalizes, Peripheral Vascular is likely to remain a constraint on consolidated growth despite favorable long-term market fundamentals.
Macro Headwinds Could Pressure Earnings: Stryker's second-quarter margin performance benefited from a net tariff benefit, making the underlying sustainability of margin expansion more complicated. Management noted ongoing pressure from oil and other raw materials while also highlighting continued cybersecurity-related expenses and broader macroeconomic uncertainty. Although the tariff benefit supported second-quarter gross margin, these favorable effects are not necessarily recurring, meaning future quarters could face less favorable comparisons. The company expects strong sales growth to provide earnings leverage, but higher input costs could absorb part of that benefit. Consequently, investors should distinguish between structural productivity gains and temporary cost benefits when assessing the durability of Stryker's 2026 margin trajectory.
Estimate TrendSYK has been witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has increased 3 cents to $15.02 per share.
The consensus mark for third-quarter 2026 revenues is pegged at $6.66 billion, indicating a 10% improvement from the year-ago reported actuals. The bottom-line estimate is pinned at $3.63, implying year-over-year growth of 13.8%.
Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.
The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
Key Takeaways PENN's completed projects helped drive 4% retail revenues and 6% adjusted EBITDAR growth in Q2.PENN raised its 2026 retail revenue guidance midpoint to $5.87 billion and adjusted EBITDAR to $1.963 billion.PENN's 2028 Council Bluffs project and future developments could drive growth, but spending discipline is key. PENN Entertainment, Inc. (PENN - Free Report) is expanding its land-based gaming footprint through a series of property development projects, providing a potential catalyst for revenue and profitability growth. The company’s recently completed investments are already showing encouraging results, while additional projects could extend the growth runway.
PENN’s four recently completed projects contributed to second-quarter 2026 performance. Hollywood Casino Joliet continued to post strong results, while M Resort delivered record net revenues and adjusted EBITDAR following the opening of its new hotel tower. Hollywood Columbus also benefited from its new hotel tower, with July marking an all-time monthly net revenue record. Meanwhile, Hollywood Casino Aurora, which opened in June, nearly doubled admissions, slot volumes, table volumes and non-gaming revenues compared with the prior-year period.
The momentum is reflected in PENN’s financial outlook. Retail revenues increased 4% year over year in the second quarter, while adjusted EBITDAR climbed 6%. Management raised its 2026 retail revenue guidance midpoint to $5.87 billion and adjusted EBITDAR forecast to $1.963 billion.
The next major project is the relocation of Hollywood Council Bluffs, expected to open in 2028 with a projected construction budget of $180-$200 million. Management also identified three additional potential projects, including a hotel and water-to-land conversions, with possible openings spread across 2029 and 2030.
With limited new competitive supply expected in key markets, these investments could support sustained growth. However, PENN must balance expansion with deleveraging and shareholder returns, making disciplined capital allocation crucial.
PENN Faces Competition as Regional Casino Investments AcceleratePENN Entertainment’s property expansion strategy comes amid continued investment by other regional casino operators. Boyd Gaming (BYD - Free Report) and Caesars Entertainment (CZR - Free Report) are two notable competitors that could challenge PENN for customers as operators upgrade properties and expand their offerings.
Boyd Gaming has a strong presence across regional gaming markets, making it a relevant peer to PENN. Its strategy includes investing in existing properties and developing new facilities, which could help strengthen customer engagement and increase Boyd Gaming’s competitive presence in key markets.
Caesars Entertainment operates a broader portfolio spanning regional casinos and destination resorts. Its scale and established customer base give Caesars Entertainment significant reach across several gaming markets, potentially increasing competitive pressure as PENN ramps up the new properties.
For PENN, the early performance of Joliet, M Resort, Columbus and Aurora provides encouraging evidence that targeted development can generate incremental demand. However, sustained returns will depend on successful property ramps, disciplined spending and PENN’s ability to differentiate its casino and entertainment offerings.
PENN’s Stock Price Performance & Valuation TrendShares of the company have gained 51.6% in the past six months, outperforming the Zacks Gaming industry, the broader Consumer Discretionary sector and the S&P 500 Index.
Price Performance
Image Source: Zacks Investment Research
PENN stock is currently trading at a discount to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 12.47, as shown in the chart below.
P/E (F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of PENNPENN’s earnings estimates for 2026 and 2027 have trended downward in the past 60 days to $1.02 and $1.64 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 117.5% and 61%, respectively.
Image Source: Zacks Investment Research
PENN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SPGI ve 2. čtvrtletí zvýšila upravený EPS o 23 % na 4,83 USD a provozní marži rozšířila o 200 bazických bodů na 54,3 %. Akcie ale dál brzdí vysoké ocenění a pokles odhadů zisku pro rok 2026 o 4,5 % za poslední čtyři týdny.
Key Takeaways SPGI's Q2 adjusted EPS rose 23% y/y to $4.83 as operating margin expanded 200 basis points to 54.3%.S&P Global trades at 22.3X forward earnings, above its sub-industry's 21X and the S&P 500's 20.6X.SPGI's 2026 earnings estimate fell 4.5% y/y in four weeks, while Market Intelligence faces execution risk. S&P Global Inc. (SPGI - Free Report) is showing stronger profitability after the Mobility spin-off, supported by recurring revenues, benchmark strength and productivity gains. Those positives improve the long-term earnings case.
The near-term setup is less clean. A premium valuation, falling earnings estimates, elevated obligations and a Market Intelligence reset argue for patience until the risk-reward becomes more favorable.
SPGI's Q2 Profit Growth Strengthens the Bull CaseAdjusted earnings in the second quarter of 2026 rose 23% to $4.83 per share and beat the Zacks Consensus Estimate by 7.6%. Pro forma revenues increased 11% year over year, while recurring revenues advanced 8%.
Adjusted operating profit climbed 15%, and adjusted operating margin expanded 200 basis points to 54.3%. That leverage shows SPGI can convert revenue growth and productivity into faster profit growth.
S&P Global Still Trades at a PremiumSPGI trades at 22.3X forward 12-month earnings, above the 21X Securities and Exchanges sub-industry multiple and the S&P 500's 20.3X. The multiple is below SPGI's five-year median of 28.4X, but the relative premium still leaves less room for execution misses.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Intercontinental Exchange, Inc. (ICE - Free Report) reported 8% growth in fixed-income and data-services revenues in the second quarter of 2026, with recurring revenues in that segment up 10%. Nasdaq, Inc. (NDAQ - Free Report) posted 15% net-revenue growth and 11% growth in annualized recurring revenue, showing healthy peer growth across capital-markets data and infrastructure.
SPGI Faces Liquidity and Execution PressureAt June 30, current liabilities of $9.13 billion exceeded current assets of $8.71 billion. Short-term debt rose to $2.57 billion and long-term debt reached $12.60 billion, although cash increased to $4.13 billion and management expects cash, operating cash flow and credit availability to cover foreseeable recurring needs.
Market Intelligence adds execution risk. Its larger Platforms operation is growing only in the low single digits organically, while management is consolidating technology, simplifying operations and redirecting investment toward faster-growing data and AI opportunities. The payoff depends on disciplined execution without disrupting customer value.
S&P Global's 2027 Estimates Offer a Growth ResetThe Zacks Consensus Estimate calls for 2027 revenues of $15.63 billion and earnings of $20.25 per share. Those figures point to renewed growth beyond 2026 and provide a path for the stock to grow into its valuation.
The revision trend remains the near-term test. The Zacks Consensus Estimate for 2026 earnings has fallen 4.5% over the past four weeks and 9.5% over 12 weeks, so stabilization or upward revisions would strengthen the case that expectations have reset sufficiently.
SPGI Buybacks Add Per-Share SupportManagement raised its 2026 share-repurchase target to more than $7 billion after buying back $1.5 billion in the first half. A lower share count can amplify earnings growth if operating performance remains solid.
SPGI also maintains a quarterly dividend of 97 cents per share. Capital returns are supportive, but their durability still rests on cash generation as the company balances repurchases, investment and an elevated debt load.
SPGI's Signals Still Favor CautionFor now, the evidence favors waiting rather than buying SPGI at the current setup. Margin expansion, recurring revenues and 2027 growth expectations are constructive, but valuation, estimate revisions and Market Intelligence execution leave limited room for disappointment.
The stock currently carries a Zacks Rank #4 (Sell), which reflects an unfavorable near-term earnings-estimate revision backdrop.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SPGI’s VGM Score of D, Value Score of D and Growth Score of D reinforce the weaker valuation and growth setup. A Momentum Score of B is a relatively bright spot, but the Zacks Rank remains the primary timing signal and supports a cautious stance.
S&P Global dokončil spin-off Mobility Global a zúžil portfolio na čtyři divize. Ve 2. čtvrtletí počet zákazníků s AI-ready daty přesáhl 500, což bylo o více než 70 % více mezikvartálně.
Key Takeaways SPGI completed the Mobility spin-off, leaving four core divisions focused on ratings, data and benchmarks.SPGI's AI-ready data customers topped 500 in Q2, up more than 70% sequentially as call volume surged.S&P Global has achieved nearly 60% of its $100M savings target as it resets Market Intelligence. S&P Global Inc. (SPGI - Free Report) completed the Mobility Global spin-off on July 1, leaving a four-division portfolio centered on ratings, benchmarks, data and analytics. The company is also expanding its use of artificial intelligence across products and internal operations.
The opportunity is greater operating focus and margin leverage. The test is whether AI adoption, productivity savings and the Market Intelligence reset can translate into sustained profitable growth.
S&P Global Emerges With Four Core DivisionsS&P Global now operates through Ratings, Market Intelligence, Energy and Indices. The separation removes Mobility from the operating mix and concentrates the company on capital-markets services, benchmark products and proprietary information.
The second quarter offered an early view of that model. Pro forma revenues increased 11%, while adjusted operating profit rose 15% and adjusted operating margin expanded 200 basis points to 54.3%.
SPGI's Revenue Mix Now Leans on Ratings and DataOn a trailing 12-month pro forma basis, Ratings accounted for 35% of divisional revenues and Market Intelligence represented 33%. Energy contributed 18% and Indices 14%, making Ratings and data-oriented operations the largest parts of the post-spin mix.
Moody's Corporation (MCO - Free Report) combines credit ratings with data and analytics, while MSCI Inc. (MSCI - Free Report) provides indexes, analytics and data. Those overlaps show why recurring information products and benchmark franchises remain central to SPGI's competitive position.
SPGI's AI Adoption Is Scaling FastCustomers using SPGI's large language model-ready data interfaces and related connected solutions exceeded 500 in the second quarter, up more than 70% sequentially. Call volume for those interfaces was more than five times the first-quarter level.
Customers are also becoming more rigorous about token costs and returns on AI spending. That raises the bar for SPGI to turn rapid adoption into durable revenue growth.
S&P Global Targets Savings to Fund InvestmentThe Enterprise Data Organization has achieved nearly 60% of its targeted $100 million in annualized savings through AI-driven efficiencies and traditional productivity measures. The full target is expected before the end of 2027.
Management plans to fund much of Market Intelligence's investment through productivity and AI-related savings. That approach ties technology adoption directly to the division's margin strategy.
SPGI's Post-Spin Guidance Sets the Margin TestFor 2026, management expects organic constant-currency revenue growth of 6% to 8%. Adjusted operating margin is projected to expand 35 to 60 basis points, or 75 to 100 basis points excluding OSTTRA.
Ratings and Indices have the highest incremental margins across the four divisions. SPGI is reinvesting some operating upside; however, expense discipline remains important to further leverage.
S&P Global's Market Intelligence Reset Adds RiskMarket Intelligence has new leadership and a revised structure built around Kensho Data & Platforms and Enterprise Solutions. Kensho Data is growing in the high single-digit to low double-digit range organically, while the larger Platforms component is growing in the low single digits.
Management plans to consolidate redundant platforms, unify technology infrastructure and simplify operations. Slower execution could leave mature platforms weighing on growth while investment continues.
SPGI's Mixed Signals Keep Execution in FocusThe Mobility spin and growing AI usage give SPGI a clearer route to higher-margin growth, but the benefits still depend on delivery. Margin expansion, Market Intelligence simplification and AI monetization remain the key operating tests.
SPGI currently carries a Zacks Rank #4 (Sell), which points to unfavorable near-term earnings estimate revision trends.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
S&P Global’s VGM Score of D, Value Score of D and Growth Score of D are weak readings, while the Momentum Score of B is relatively positive. The Style Scores complement the Zacks Rank, so the stronger Momentum reading does not override the weaker primary signal.
Key Takeaways ADP stock gained 13.4% in a month, outperforming the industry's 1.6% growth and S&P 500's 2.4%.ADP's Q4 adjusted EBIT rose 13% to $1.37B, while its margin expanded 140 basis points to 25.1% y/y.ADP ended fiscal 2026 with $4.2B in cash and paid $2.6B in dividends, supporting shareholder value. ADP (ADP - Free Report) stock has gained 13.4% in a month, outperforming the industry’s 1.6% growth and the Zacks S&P 500 Composite's 2.4% return.
1-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
ADP’s Innovation Initiatives Attract InvestorsADP continues to accelerate its DataCloud penetration and increase investments in inside sales, mid-market migrations and service alignment initiatives through its ongoing transformation initiatives. These initiatives enabled the company to innovate, improve operations, expand margins and enhance its operational capabilities. The results are visible as ADP reported that its adjusted EBIT increased 13% year over year to $1.37 billion in the fourth quarter of 2026. The adjusted EBIT margin expanded 140 basis points to 25.1% in the same time frame, while adjusted net earnings rose 14% y/y to $1.05 billion, reflecting ADP’s successful conversion of revenue growth into stronger operating leverage and expanded profitability. Such results boost shareholder confidence in the company's profit growth.
ADP’s Cash Profile Bolsters LiquidityThe company had a cash balance of $4.2 billion at the end of the fourth quarter of fiscal 2026 against a total long-term debt of just $4.9 billion. The figure is substantially lower than the operating cash flow of $5.4 billion for the same period, indicating sufficient cash flow to pay off its debt. This solid cash position provides ADP with sufficient flexibility to pursue growth opportunities without straining its short-term debt position.
Moreover, ADP had a current ratio of 1.05 during the same time frame. Though the figure is lower than the industry benchmark of 1.93, a metric above 1 indicates greater efficiency to meet short-term obligations, which bolsters investor morale.
Consistent Dividend PayoutIn fiscal 2023, 2024, 2025 and 2026, the company distributed $1.6 billion, $1.7 billion, $1.9 billion and $2.6 billion in dividends, respectively. Such moves reflect ADP’s dedication to enhancing shareholder value. This also underlines its confidence in the business's long-term potential and makes the stock appear highly attractive for income-seeking investors.
ADP’s Zacks Rank & Stocks to ConsiderADP currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .
Analog Devices carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 31%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADI delivered a trailing four-quarter earnings surprise of 4.8%, on average.
Applied Materials also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 36.7%.
AMAT beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 5.5%.
Strategy (NASDAQ:MSTR) is outpacing Bitcoin (CRYPTO:BTC) in a sharp five-day rally — Strategy shares are up 27%, while Bitcoin has gained 19% over the same period.
Strategy’s Bitcoin Profit SurgesStrategy’s recent momentum is bolstered by its substantial Bitcoin holdings. As of Friday, the company is sitting on a $1.4 billion unrealized gain after Bitcoin surged.
This marks a significant turnaround for Strategy, which had been facing an unrealized loss of $13 billion when Bitcoin hit its July low of $58,000. The company owns 840,447 BTC, acquired at an average price of $75,385 per coin, and has been strategically managing its assets by selling some Bitcoin while building a substantial U.S. dollar reserve.
This reserve provides 2.8 years of coverage for dividend payments and other obligations. Strategy has also been active in restoring its perpetual preferred stock to its $100 par value, deploying more than a third of its $1 billion buyback authorization in recent weeks.
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The broader digital credit market’s recovery alongside Bitcoin could provide additional tailwinds for Strategy. Strategy’s Bitcoin profit highlights its strategic positioning in the market.
Bitcoin’s Short Squeeze Fuels RallyThe recent Bitcoin breakout, which saw prices climb to approximately $72,500, was fueled by a $500 million short squeeze. This event marked Bitcoin’s strongest volatility-adjusted breakout since October 2023.
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Glassnode co-founder Rafael Schultze-Kraft noted that such breakouts have historically preceded gains of nearly 85% over six months, although prediction markets suggest traders remain cautious. The move followed the Treasury’s announcement to expand long-term bond buybacks, briefly pushing yields lower and lifting risk assets.
Strategy and Coinbase Global, Inc. (NASDAQ:COIN) also experienced gains during this period. Bitcoin’s short squeeze underscores the volatile nature of the cryptocurrency market.
Technical AnalysisStrategy is currently on a winning streak, adding about $11.92 billion in market cap over approximately three sessions. The stock trades 19.41% above its 50-day simple moving average of $99.78, indicating strong upward momentum.
However, it remains 17.23% below its 200-day simple moving average of $143.95, reflecting longer-term challenges. Despite these challenges, Strategy’s recent performance suggests a potential for continued growth.
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Strategy drží 840 447 bitcoinů a za posledních 7 dní vykázala přes 12,9 miliardy USD nerealizovaného zisku. Růst BTC o více než 24 % posunul její držbu zpět do zisku.
As Bitcoin (BTC) price pumped by more than 24% over the past seven days, Strategy Inc. (NASDAQ: MSTR), under Executive Chairman Michael Saylor, has seen its holdings record more than $12.9 billion in unrealized profits.
On August 21, Strategy held 840,447 Bitcoin, after acquiring 167,947 coins year-to-date (YTD), according to its official data. With BTC price having climbed by approximately $15,400 per coin over the past seven days, this company’s Bitcoin holdings recorded roughly $12,942,883,800 in paper profits during this period.
BTC/USD 7-day chart. Source: Finbold However, Strategy’s average Bitcoin cost was around $75,385 at the time of publication. As such, the company’s net unrealized gains were about $2,407,880,655, at the time of reporting.
The significant Bitcoin price rally above $75,385 has pushed Saylor’s company into profit, for the first time since May 26, 2026. Notably, Strategy’s Bitcoin trove sat on an unrealized loss of over $14.17 billion on July 1, 2026, as BTC price retested its 2026 bear market bottom.
What’s next for Strategy amid Bitcoin price rebound? As Strategy faced intense criticism of a potential liquidity crunch amid the bear market turmoil in the first half of 2026, as Finbold highlighted, this company has since increased its focus on building its cash reserves. Earlier this week, Saylor announced that Strategy had added $150 million to its USD Reserve and repurchased $132 million of STRC, one of the company’s perpetual preferred stock.
As a result, this company lifted its cash reserves to $4.8 billion, without any Bitcoin sale or purchase. YTD, Strategy has sold nearly 6,948 BTC, according to an 8-k filing with the United States Securities and Exchange Commission (SEC).
With the company’s BTC holdings already in net profit amid its reduced sales to bolster cash reserves, Bitcoin price is well positioned to experience further bullish sentiment.
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Southern Copper vykázala ve 2. čtvrtletí rekordní upravenou EBITDA ve výši 2,86 miliardy USD, meziročně o 59,5 % více. Firma zároveň zvýšila výhled produkce mědi pro rok 2026 na 917 000 tun.
Key Takeaways Southern Copper's Q2 adjusted EBITDA jumped 59.5% y/y as higher prices and cost-control lifted results.Copper prices near $6.6 per pound and higher metal prices could support further EBITDA gains.Southern Copper raised its 2026 copper output forecast to 917,000 tons despite lower ore grades. Southern Copper Corporation (SCCO - Free Report) delivered an adjusted EBITDA of a record $2.86 billion in the second quarter of 2026, marking a year-over-year upside of 59.5%. As a result, Southern Copper's adjusted EBITDA for the first half of 2026 jumped 57.5% year over year to $5.57 billion, expanding the adjusted EBITDA margin from 57.3% last year to 65.2%. The upside was driven by higher metal prices, disciplined cost management and higher revenues.
Southern Copper’s second-quarter revenues increased 40.6% to a record $4.29 billion. Net income attributable to SCCO also reached a record $1.67 billion, rising 71.6% year over year. The net income margin improved to 38.9% from 31.9% in the year-ago period.
However, SCCO’s total copper production decreased 3.6% in the second quarter of 2026 to 232,521 tons due to a decrease in production at the company’s Peruvian operations. While mined silver production fell 3.8%, zinc and molybdenum production fell 14.5% and 11%, respectively, in the same time frame.
Despite the year-to-date fall in production, the company has slightly hiked its 2026 copper production outlook to 917,000 tons from the initially stated 910,000 tons. The figure, however, still implies a 5% year-over-year decline. The downside will be led by lower ore grades at the Cuajone and Peruvian mines. Nonetheless, Southern Copper maintains a strong long-term outlook with production expected to increase to 1.15 million tons by 2031, 1.476 million tons in 2032 and continue rising steadily to reach the above-mentioned 1.6-million-ton target by 2035.
Copper prices are currently near $6.6 per pound, up 47.7% in a year, supported by tight global supply and strong demand. Along with SCCO, its peers Teck Resources Ltd (TECK - Free Report) and Freeport-McMoRan Inc. (FCX - Free Report) are gaining from this rise in copper prices. Higher prices for molybdenum, zinc and silver will also aid growth.
The rally in metal prices this year and its ongoing cost-control efforts position the company for further EBITDA gains in the months ahead.
Southern Copper Peers’ EBITDA PerformanceTeck Resources’ adjusted EBITDA for the second quarter of 2026 was CAD$2.2 billion ($1.59 billion), which soared 204% from the year-earlier period. The EBITDA margin was 60.8% in the quarter under review compared with the year-ago quarter’s 35.7%. TECK’s revenues amounted to $2.6 billion, reflecting a 78% year-over-year improvement. Teck Resources’ copper production was around 135,900 tons, 25% higher than the first quarter of 2025, attributed to improved performance across all operations.
Freeport-McMoRan reported an adjusted EBITDA of $3.5 billion for the second quarter of 2026, marking a year-over-year rise of 9.4%. FCX’s revenues declined 7.3% year over year to $7.03 billion. Freeport-McMoRan’s copper production fell 18.4% year over year to 786 million pounds in the reported quarter.
SCCO’s Price Performance, Valuations & EstimatesSouthern Copper shares have gained 108.3% year to date compared with the Zacks Mining - Non Ferrous industry’s rise of 69.7%. During this time, the Basic Materials sector has risen 32.2% and the S&P 500 has rallied 23%.
Image Source: Zacks Investment Research
The Southern Copper stock is currently trading at a forward 12-month earnings multiple of 27.57X, which is a premium to the industry average of 22.92X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Southern Copper’s 2026 sales is $16.86 billion, indicating a 25.6% year-over-year jump. The consensus mark for the year’s earnings is pegged at $7.61 per share, suggesting a rally of 45.2%.
The Zacks Consensus Estimate for 2027 sales implies an 11.7% year-over-year dip. The same for earnings suggests a fall of 8.2%.
Earnings estimates for 2026 have moved 0.1% south over the past 60 days, while the same for 2027 have moved up 0.3% over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HPQ ve 3. fiskálním čtvrtletí očekává růst tržeb o 4,8 % na 14,60 miliardy USD, ale EPS má meziročně klesnout o 12 % na 66 centů. Tlak mohou zvýšit vyšší ceny pamětí a náklady na dopravu.
Key Takeaways HP's Q3 revenues are expected to rise 4.8% to $14.60 billion, while EPS is projected to decline 12%.AI PCs, premium systems and Windows 11 refresh demand are expected to support HP's Personal Systems business.Rising memory, resin and transportation costs could weigh on HP's Q3 profitability and Print margins. HP Inc. (HPQ - Free Report) is slated to release third-quarter fiscal 2026 results on Aug. 26.
The Zacks Consensus Estimate for revenues is pegged at $14.60 billion, suggesting an improvement of 4.8% from the prior-year quarter.
HP expects non-GAAP earnings per share between 61 cents and 71 cents for the fiscal second quarter. The Zacks Consensus Estimate for earnings has remained unchanged at 66 cents over the past 30 days, suggesting a year-over-year decline of 12%.
In the trailing four quarters, HPQ’s earnings matched the Zacks Consensus Estimate in one of the trailing four quarters and surpassed thrice, with an average surprise of 6.7%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence HPQ’s Q3 ResultsHP’s fiscal third-quarter performance is likely to have been supported by continued momentum in the Personal Systems business, particularly from AI PCs, premium PCs and higher-margin attached services. In the second quarter, Personal Systems revenues increased 13% year over year, with AI PCs, advanced compute solutions and workforce solutions delivering double-digit revenue growth. Strength in the AI PC category, driven by Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted top-line growth.
The ongoing Windows 11 refresh cycle and demand for AI at the edge are also expected to have supported HPQ’s prospects in the fiscal third quarter. Management noted that around 30% of the installed PC base was still on Windows 10 at the end of the fiscal second quarter, leaving room for additional refresh activity. HP also expects structural demand for AI PCs and premium PCs to remain strong as customers increasingly move AI workloads toward the edge for benefits such as lower latency, privacy and lower costs.
Growing customer adoption of gaming experiences is expected to have aided the fiscal third-quarter performance. The company’s wide portfolio of gaming gear, which includes OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, is likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.
However, rising memory prices are likely to have weighed on HP’s profitability in the fiscal third quarter. Memory and storage solution providers are redirecting their resources toward high-margin memory used in AI servers and data centers. This shift has tightened supply for standard DRAM and NAND for laptops and desktops, which has pushed memory prices sharply higher. Since memory accounts for a meaningful portion of a PC’s total build cost, rising prices are eroding PC vendors’ margins.
HP expects inflationary pressures beyond memory and storage, including higher oil prices and related transportation costs. In Print, rising resin and transportation costs are expected to have pressured margins in the fiscal third quarter, while incremental hardware placements and normal seasonality are also likely to have weighed on profitability. Management expects Print operating margins to be near the lower end of its long-term range in the third quarter of fiscal 2026.
Earnings Whispers for HPQOur proven model does not conclusively predict an earnings beat for HP this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
HPQ has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.
Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.
Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.
Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.
Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.
CleanSpark klesl o 6 % v pátečním obchodování, i když Bitcoin za posledních 24 hodin vzrostl o 7 %. Trh zpochybňuje přerod těžařů v poskytovatele pronájmu pro AI, zatímco MARA Holdings klesá o 0,1 %.
A rare split is opening up inside the Bitcoin (CRYPTO:BTC) miner cohort on Friday, and it isn’t about the coin. CleanSpark (NASDAQ:CLSK | CLSK Price Prediction) stock is down 6% to $11.84 in Friday morning trading, taking the worst of the selling.
Meanwhile, MARA Holdings (NASDAQ:MARA) stock is essentially unchanged, down 0.1% to $11.14, holding up as the group’s outlier against CleanSpark’s drop. Notably, Bitcoin (CRYPTO:BTC) is up 7% over the past 24 hours to $77,740.82, which rules out crypto weakness as the explanation.
That disconnect is the story. Investors are repricing the miner-to-AI-landlord pivot rather than the coin, and CleanSpark is taking the brunt.
The 2026 miner narrative was that gigawatts of grid-connected power could get released to hyperscalers and AI labs at attractive multiples. Friday’s move suggests the market wants those contracts to arrive with confirmed anchor tenants, not with construction milestones and unfunded promises.
Why the Pivot Trade Is Unwinding There’s no CleanSpark press release behind Friday’s decline. This pressure is thematic: miners spent 2026 marketing themselves as future AI data center landlords, and the market’s appetite for pivot narratives is fading in a hurry (the power, cooling, and networking companies actually building out AI capacity are a cleaner way to play the theme, and we rounded up seven of them in a free report here: 7 Stocks Powering the AI Boom).
CleanSpark’s own numbers illustrate the tension. Management signed a 20-year, $6.6 billion triple-net lease at the Sandersville site with a high investment-grade tenant. CEO Matt Schultz said the equity portion is fully funded and long-lead equipment is pre-paid, and CFO Gary Vecchiarelli stated the company has “materially de-risked execution while preserving balance sheet flexibility.”
The mining business underneath that promise is deteriorating. Revenue at CleanSpark fell 30.5% year over year to $138 million in fiscal Q3 2026, with the company swinging to a net loss of $239.8 million from net income of $257.4 million a year earlier.
CleanSpark’s adjusted EBITDA fell to negative $113 million from positive $377.7 million, and Sandersville lease revenue hasn’t started flowing yet, so the contracted backlog is a promise rather than cash. That reversal captures the moment when mining stopped subsidizing the transition, which means anyone buying the pivot story now has to underwrite Sandersville execution on its own merits.
Read-Across From Riot Platforms Additionally, Riot Platforms (NASDAQ:RIOT) stock was up 66% year to date through Thursday’s close, the largest gain in the group. This week, Riot Platforms struck a $9.1 billion, 20-year computing deal with Anthropic, leasing 191 megawatts at its Rockdale, Texas campus.
That contract could reach $16.1 billion in total sales if extended twice by five years each. On the news, Riot Platforms shares initially jumped more than 20% before giving back most of the gain.
Compass Point analyst Michael Donovan described the Riot Platforms site as a “two-tenant campus carrying $9.8 billion of contracted data center revenue” and reiterated a buy rating with a $29 price target. Here’s the CleanSpark read-across: a $9.1 billion contract couldn’t hold a one-day gain, which shows what a Sandersville-style promise is worth in the current market.
Where the Group Diverges MARA Holdings stock is up 24% year to date through Thursday’s close, nearly identical to CleanSpark’s 25% gain over the same stretch. In Friday’s session, MARA Holdings shares are flat while CleanSpark shares are down 6%.
Bitcoin’s 7% move is doing the work at MARA Holdings and isn’t enough to offset pivot repricing at CleanSpark. This spread inside a group that used to trade as one Bitcoin proxy is the clearest evidence that these are no longer the same trade.
For context, the CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) is down 3% to $45.54, with the fund up 23% year to date through Thursday’s close. A miner ETF falling on a 7% Bitcoin day is the cleanest single expression of the disconnect, placing CleanSpark’s decline as worse than the basket rather than in line with it. The ETF is narrowly concentrated in a single industry, so it carries more single-industry risk than a broad technology or crypto fund.
What to Watch Traders can watch for a reclaim of support at CleanSpark stock as the Bitcoin rally holds. Investors may want to keep an eye on whether the miner basket resynchronizes with the coin or continues trading on pivot execution.
Position sizing is straightforward from here. If the group is fragmenting into AI-landlord winners and mining-drag losers, blanket miner exposure is riskier than it looked a quarter ago. Shareholders should keep their exposure modest until Sandersville revenue shows up in the income statement, and any allocation should account for the WGMI ETF’s single-industry concentration.
The next real catalyst for CleanSpark is Sandersville commercialization. A tenant occupancy update or an initial quarter of lease revenue would give the pivot narrative something concrete to price against.
Contact [email protected] for any questions or corrections.
