Data center spending could hit $3.2 trillion in the next three years, according to an August 2026 report by Morgan Stanley. Amazon CEO Andy Jassy said Amazon Web Services -- the leading cloud services provider -- won't have enough capacity to meet demand this year, and he expects the shortage to continue in 2027.
That shortage benefits the companies that supply chips and rent out compute capacity. Broadcom (AVGO -1.94%), Iren (IREN -7.54%), and Taiwan Semiconductor Manufacturing (TSM -1.85%) all trade at attractive valuations relative to their growth potential and can outperform the market through 2030.
Image source: Getty Images.
1. Broadcom: AI revenue to double next year Broadcom designs custom AI accelerators called XPUs and also sells networking equipment that speeds up data communication between chips in a data center. In its fiscal third quarter, total revenue rose 86% year over year to nearly $30 billion, while AI semiconductor revenue jumped 221% to $16.7 billion.
Anthropic is on track to become Broadcom's largest XPU customer in 2027, and OpenAI's Jalapeño chip and Alphabet's Google's TPU v8i are both already shipping. Company guidance calls for AI revenue to reach $58 billion in fiscal 2026, $115 billion in fiscal 2027, and $230 billion in fiscal 2028.
AVGO Broadcom$344.97-$6.84 (-1.94%)
NASDAQ · As of 1:18 PM ET 10/29/26
The risk is that Broadcom's customers may need help financing chip purchases, including Anthropic and OpenAI, through a platform with Apollo and Blackstone. If a customer were to pull back on its orders or be unable to raise the money, AI revenue could miss guidance.
The stock trades at a forward price-to-earnings (P/E) ratio of about 28, as of Oct. 26. Analysts expect $11.66 in earnings per share this fiscal year, rising to about $30 in fiscal 2028, consistent with management's target. That works out to a forward P/E of about 11 -- a low valuation that can set up market-beating gains if Broadcom can meet its guidance.
2. Iren: A full-stack data center builder and operator Iren is phasing out its Bitcoin mining operations to rent out capacity to hyperscalers and AI companies. Its advantage is that it owns land, power, data centers, graphics processing units (GPUs), and cloud software. It has everything it needs to become a hyperscaler, offering cloud services and cutting-edge compute for AI workloads.
That matters because new data centers take years to bring online, even as AI usage skyrockets. On its August earnings call, management noted that weekly token usage across large language models rose nearly 17 times in eight months.
IREN Iren$26.67-$2.18 (-7.54%)
NASDAQ · As of 1:20 PM ET 10/29/26
The risk is the price tag. Iren plans to spend up to $30 billion on its build-out next year, while it reported just $707 million in trailing-12-month revenue and a net loss of over $700 million. However, customer prepayments are funding 45% to 55% of GPU costs, and Iren is expected to end 2026 with $4 billion in annual recurring revenue (ARR) after delivering its first batch of contracted capacity to Microsoft last quarter.
Iren's land and power assets could become increasingly valuable in a compute-constrained world. Wall Street's fiscal 2029 consensus estimate calls for earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach $9.9 billion. Iren's $10 billion market cap looks cheap relative to that estimate.
3. Taiwan Semiconductor: The foundry behind the boom Taiwan Semiconductor Manufacturing (TSMC) is the leading chipmaker, controlling over 70% of the foundry market, according to Counterpoint. It makes chips for other companies, and CEO C.C. Wei says that it works with all the AI companies. Third-quarter revenue hit $46.7 billion, up 41% year over year.
Demand for advanced 7-nanometer chips and smaller chips accounted for 79% of the company's wafer revenue in Q3 2026. TSMC dominates the foundry market because it can supply enough chips to meet demand across multiple markets, including smartphones. High-performance computing (HPC), including AI data centers, makes up 68% of the company's total revenue.
TSMC forecasts AI accelerator revenue to compound in the mid-to-high-50s percentage range through 2029, and on the latest Q3 2026 earnings call, Wei said it will "probably" be higher. To meet demand, TSMC is investing $60 billion to $64 billion this year, partly to fund expanded manufacturing capacity across nearly 20 facilities worldwide.
Although the chip industry has grown significantly for several decades, it can experience ups and downs like the broader economy. Anything that slows chip demand and the data center build-out would send TSMC stock lower.
Still, the stock's valuation looks attractive. The shares trade at a forward P/E of 24, with analysts expecting earnings to grow at an annualized rate of 43%. That can support market-beating gains through 2030.
One industrial giant just logged its 63rd straight dividend raise, but three other names in the sector are quietly building the case that they deserve a spot in a retirement portfolio first.
Retirement income works best when payouts grow every year, regardless of what the economy is doing. Four industrial names fit that brief. They include two automation-and-machinery compounders, a tool maker in the middle of a turnaround, and a parts distributor about to split in two. All four have long records of dividend increases. The standout is Illinois Tool Works (NYSE:ITW | ITW Price Prediction), which just announced its 63rd consecutive year of dividend increases. Below, we rank each name by how well its cash flow covers the dividend before we get to yield.
Illinois Tool Works: A 63-Year Raise Streak Backed by Record Margins
Dividend safety. ITW pays for its dividend out of very large cash flows. Third-quarter free cash flow came in at $851 million, or 100% of net income, and free cash flow through the first nine months grew 9% to more than $2 billion. Management expects full-year free cash flow conversion of approximately 100% of net income. The new annualized dividend of $6.88 per share uses roughly 60% of the midpoint of raised full-year GAAP EPS guidance of $11.45 to $11.55. That leaves room for both raises and buybacks. ITW returned $2.7 billion to shareholders in the first nine months of the year. ITW keeps its balance sheet lean by design: $809 million in cash and $3.14 billion of shareholders’ equity. Years of buybacks have shrunk the equity base, which explains a price-to-book ratio of 27.18.
Yield. At the current price of $276.07, the new payout works out to a yield of about 2.49%.
Track record. The most recent quarterly payment rose to $1.72 from $1.61, a 7% increase. Sixty-three straight years of raises put ITW well past the 50-year bar for Dividend King status.
Bull case. Operating margin hit a record 27.8%, and management says its “4% plus organic growth and 30% operating margins by 2030” framework is intact. Demand tied to semiconductors and AI pushed Electronics up 31% for a retiree, adding to a business that keeps getting more profitable, which should keep raises coming. The stock trades at a forward P/E of 22.
Risk. Some end markets are soft. Automotive OEM organic revenue fell 2%, and Construction Products slipped 1% organically, with margins in both segments down 170 basis points.
Emerson Electric: The Best-Covered Dividend in the Group
Dividend safety. Emerson Electric (NYSE:EMR) has the widest buffer of the four. Management guides to full-year free cash flow of about $3.6 billion, against planned dividends of $1.2 billion. The annualized dividend uses about 34% of adjusted EPS guidance of $6.55. Third-quarter free cash flow rose 36% to $1.32 billion. Emerson also plans $1 billion in share repurchases this fiscal year, showing how much cash remains after the dividend.
Yield. The trailing yield is 1.32%, the lowest in this group.
Track record. In the dividend record, Emerson’s quarterly payout rose every year from $0.2625 in 2007 to $0.555 today. The latest step-up was from $0.5275.
Bull case. Emerson is now an automation and industrial software company. Maintenance, repair, and operations make up 65% of sales, providing steady, recurring revenue. The backlog was $8.2 billion, and the project pipeline grew to $12.4 billion, with power and semiconductor demand leading the way. With that much growth and coverage, the dividend has plenty of room to grow faster.
Risk. You pay for that quality. The starting yield is low, and the trailing P/E is 37, compared with a forward P/E of 23. Retirees who need cash now get less income per dollar invested here than from any other name on this list.
Genuine Parts: Highest Yield, Longest Visible Run of Raises
Dividend safety. Genuine Parts (NYSE:GPC) distributes auto replacement parts through NAPA and industrial parts through Motion. Its coverage is the tightest of the four. Free cash flow of approximately $500 million so far this year compares with approximately $434 million paid in dividends. Full-year free cash flow guidance is $550 million to $700 million. On adjusted earnings, the payout looks more comfortable, at roughly 56% of the midpoint of $7.50 to $7.75 guidance. Restructuring and separation charges cut GAAP EPS to $0.26 on a trailing basis, so the trailing P/E is misleading. The forward P/E is 15. Cash on hand was $763 million.
Yield. At 3.46%, GPC has the highest yield in this group.
Track record. The dividend record shows an annual increase from a $0.26 quarterly payment in 1999 to $1.0625 now, with no break in the sequence.
Bull case. The Industrial segment is gaining speed. Sales rose 6% to $2.4 billion, and EBITDA margin expanded to 13.2%. Growth showed up in 12 of the 14 end markets the company tracks. Once Motion becomes its own company, investors will be able to value the higher-margin business directly.
Risk. The separation into two public companies is targeted for the first quarter of next year, and management has not said how it will split the dividend between them. The CFO says capital allocation details for both companies will come at the Investor Days, so income holders should keep an eye on those plans.
Stanley Black & Decker: A Deleveraging Story With a Fresh Raise
Dividend safety. Stanley Black & Decker (NYSE:SWK) has improved its coverage. After selling its aerospace fasteners business for $1.8 billion, the company paid down $1.7 billion of debt and is targeting net debt to adjusted EBITDA “at or around 2.5x by year-end”. The current payout costs about $507 million a year. That fits within free cash flow guidance of $600 million to $800 million and is roughly 61% of the midpoint of adjusted EPS guidance of $5.20 to $5.80. Management lists the dividend as a top priority: “Our priorities remain to invest in growth, support the dividend, repurchase shares and pursue M&A if and when appropriate.”
Yield. The trailing yield is 3.34%.
Track record. The latest quarterly payment rose to $0.84 from $0.83. The dividend record shows the quarterly amount climbing steadily from $0.22 in 1999.
Bull case. DEWALT, CRAFTSMAN, and STANLEY all posted organic growth. Adjusted gross margin rose 620 basis points to 33.7%, and management is targeting 35% to 37% by the end of 2028. Barron’s recently described the company as tooling up for an industrial recovery. At a forward P/E of 16, investors buying today get a well-supported yield plus a chance at a re-rating.
Risk. Some recent earnings strength may not last. Net tariff refunds added about $0.17 to second-quarter adjusted EPS, and first-quarter operating cash flow was negative $388.8 million before the rebound.
Four Ways to Build a Rising Industrial Income Stream
Together, these four cover different needs in an income portfolio. ITW offers the longest verified streak. Emerson has the strongest cash coverage, Genuine Parts has the highest yield, and Stanley Black & Decker has a balance sheet that continues to strengthen. All four fund their payouts from free cash flow and have raised them steadily for years, making them a solid income core that grows over a long retirement.
Contact [email protected] for any questions or corrections.
Key Takeaways 3M emerges as the stronger pick over ITW, backed by robust growth prospects & lower valuation.MMM's 2026 EPS is likely to grow 12.7% compared with ITW's 8.9%, while its shares have gained 18% in 6 months.ITW faces weakness in Construction and Specialty Products, rising debt and a higher forward P/E of 22.61X.
3M Company (MMM - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) are both familiar names operating in the diversified industrials sector. While 3M operates in the industrial, electrical, transportation, consumer and home care markets, Illinois Tool provides electronic equipment, engineered adhesives, industrial sealants, food equipment, as well as construction products in the United States and internationally.
With considerable exposure in industrial and consumer markets, both companies invest heavily in research and development to generate innovative products, drive growth and gain market share. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for 3M3M has been witnessing strong momentum in the Safety and Industrial segment, driven by strength in electrical, industrial specialties and personal safety markets. Stable demand across automotive aftermarket and fire safety markets is driving the segment’s performance. Also, new product launches and an increase in demand for industrial adhesives and tapes bode well for it.
Within the segment, sales in both personal safety and industrial adhesives & tapes markets increased 7.8%, while electrical market sales climbed 13.4% year over year in third-quarter 2026. Industrial specialties and automotive aftermarket also posted growth of 5.1% and 5.5% in the quarter, respectively. The Safety and Industrial segment’s organic sales increased 7% year over year in the third quarter.
Strong momentum across advanced materials, commercial branding and automotive & aerospace markets, supported by solid demand for products and broader sales coverage, is driving the Transportation & Electronics segment’s performance. In the third quarter, the segment’s organic sales increased 0.5% year over year. Backed by strength across its businesses, 3M provided a positive outlook. For 2026, it expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis.
3M is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of 2026, the company rewarded its shareholders with $1.22 billion in dividends and $3.2 billion in buybacks. Exiting the third quarter, the company had $1.5 billion remaining under the share repurchase program. In February 2026, it hiked its quarterly dividend by 6.8%.
Despite the positives, weakness in the packaging, expression and home improvement markets, led by U.S. retailer inventory levels, remains a concern. This is reflected in the Consumer segment’s results, which declined 0.4% in the third quarter.
The Case for Illinois ToolIllinois Tool is benefiting from positive momentum across most of its segments. Strength across infrastructure, semiconductor, energy and aerospace and defense markets is driving the Welding segment’s performance. The segment’s organic revenues increased 6.9% year over year in third-quarter 2026.
Solid momentum in electronic assembly and semiconductor-related businesses, supported by expanded production capacity and differentiated product offerings, is benefiting the Test & Measurement and Electronics segment. Strength across automotive aftermarket, polymers and fluids businesses is driving the Polymers & Fluids segment. In the third quarter, organic revenues from Test & Measurement and Electronics and Polymers & Fluids segments increased 15.8% and 8.2%, respectively.
Weakness across residential markets in both North America and Europe is ailing the Construction Products segment's performance. However, growth in demand across residential markets in Australia and New Zealand remains a positive. Lower equipment sales and softness across appliance and marking coding businesses are hurting the Specialty Products segment’s results. In the third quarter, organic revenues from Construction Products and Specialty Products segments declined 0.8% and 1.2%, respectively.
Illinois Tool remains committed to rewarding its shareholders substantially through dividend payments and share buybacks. In the first nine months of 2026, the company paid about $1.4 billion in dividends and repurchased shares worth $1.3 billion. In August 2026, the company hiked its dividend by 7% to $1.72 per share.
The company's high debt level remains a concern. Exiting third-quarter 2026, its total debt increased to $9.37 billion from $8.97 billion at the end of 2025. Long-term debt increased to $7.15 billion, while short-term debt totaled $2.22 billion, primarily reflecting higher commercial paper borrowings. Considering its high debt level, the company’s cash and cash equivalents of $809 million do not look impressive.
How Does the Zacks Consensus Estimate Compare for MMM & ITW?
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 4.8% and 12.7%, respectively. The EPS estimates for both 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ITW’s 2026 sales and EPS implies year-over-year growth of 4.8% and 9.2%, respectively. While Illinois Tool’s EPS estimate for 2026 has increased over the past 60 days, the same for 2027 has declined.
Price Performance and Valuation Profile
Image Source: Zacks Investment Research
In the past six months, 3M shares have risen 18%, while Illinois Tool stock has gained 7%.
Image Source: Zacks Investment Research
3M is trading at a forward 12-month price-to-earnings ratio of 17.84X, while ITW’s forward earnings multiple sits higher at 22.61X.
MMM or ITW: Which is a Better Pick?3M’s strength in the safety, industrial, transportation and aerospace markets, along with its focus on product innovation, is likely to drive its long-term performance. The company’s strong fundamentals showcase its potential to deliver sustained value to investors over time and boost their confidence in its growth trajectory.
In contrast, Illinois Tool’s strength in the Test & Measurement and Electronics, Polymers & Fluids and Welding segments has been dented by the weakness in its Construction and Specialty Products segments. Also, ITW’s expensive valuation and downward earnings estimate revisions warrant a cautious approach for existing investors.
Given these factors, MMM seems a better pick for investors than ITW currently. While 3M carries a Zacks Rank #2 (Buy), Illinois Tool currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Silver (XAG/USD) falls around 3% on Thursday, sliding to fresh year-to-date lows as hawkish Federal Reserve (Fed) expectations keep buyers on the sidelines. At the time of writing, XAG/USD trades around $52.32, its lowest level since November 2025.
Bunge Global SA (BG) Q3 2026 Earnings Call October 29, 2026 8:00 AM EDT
Company Participants
Mark Haden - Vice President of Investor Relations
Gregory Heckman - CEO & Director
John Neppl - Executive VP & CFO
Conference Call Participants
Matthew Lovseth Blair - Tudor, Pickering, Holt & Co., LLC
Benjamin Theurer - Barclays Bank PLC, Research Division
Manav Gupta - UBS Investment Bank, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
Steven Haynes - Morgan Stanley, Research Division
Pooran Sharma - Stephens Inc., Research Division
Heather Jones - Heather Jones Research LLC
Andrew Strelzik - BMO Capital Markets Equity Research
Presentation
Operator
Good day, and welcome to the Bunge Global SA Third Quarter 2026 Earnings Release and Conference Call.
[Operator Instructions]
Please note, this event is being recorded. I would now like to turn the conference over to Mark Haden, IR. Please go ahead.
Mark Haden
Vice President of Investor Relations
Thank you, Keith, and thank you all for joining us this morning for our third quarter 2026 earnings call. Before we get started, I want to let you know that we have slides to accompany our discussion. These can be found at the Investor Center on our website at bunge.com under Events and Presentations. Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures are posted on our website as well.
I'd like to direct you to Slide 2 and remind you that today's presentation includes forward-looking statements that reflect Bunge's current view with respect to future events, financial performance and industry conditions.
These forward-looking statements are subject to various risks and uncertainties. Bunge has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation, and we encourage you to review these factors.
Key Takeaways Bunge Global's Q3 adjusted EPS rose 12.8% to $2.56, beating estimates on strong soybean and softseed results.Softseed processing EBIT jumped 19.6% to $329 million on stronger North American performance.Bunge maintained 2026 adjusted EPS guidance of $9.25-$9.75.
Bunge Global SA (BG - Free Report) reported third-quarter 2026 adjusted earnings of $2.56 per share, up 12.8% year over year. The figure beat the Zacks Consensus Estimate of $2.45 by 4.49%. Strong performance in the Soybean and Softseed Processing and Refining segments drove the results.
Including one-time items, earnings from continuing operations were $1.64 per share compared with 86 cents in the year-ago quarter.
Net sales increased 7.4% to $23.80 billion, surpassing the consensus mark of $23.08 billion by 3.15%. Softseed processing volumes increased 15.2%, supported by favorable margins.
BG's Cost and Margin PictureCost of goods sold increased 6.5% year over year to $22.47 billion. Gross profit climbed 25.3% to $1.33 billion from $1.06 billion, while gross margin expanded to 5.6% from 4.8%. Selling, general and administrative expenses declined 10.8% to $605 million.
Adjusted total EBIT increased 11.8% to $846 million from $757 million. The corresponding margin improved to 3.6% from 3.4%, reflecting stronger profitability despite ongoing geopolitical and trade uncertainties.
Bunge's Soybean Processing GainsSoybean Processing and Refining sales increased 5.4% year over year to $11.44 billion. Adjusted segment EBIT advanced 18.2% to $565 million from $478 million, reflecting stronger processing performance across key regions.
North America was the largest contributor to the improvement, supported by stronger processing results, partially offset by lower refining performance. In South America, improved processing in Argentina and Brazil was partly offset by weaker fertilizer and refining results.
Soybean processing volumes declined 3.2% to 11,745 thousand metric tons. Lower processing volumes in South America and Asia were partially offset by higher European volumes, while U.S. processing volumes remained stable. Merchandised volumes declined to 5,274 thousand metric tons from 7,246 thousand metric tons.
BG's Softseed Processing MomentumSoftseed Processing and Refining sales rose 17.5% year over year to $4.30 billion. Adjusted segment EBIT increased 19.6% to $329 million from $275 million, driven primarily by stronger North American processing and refining performance.
Processing results improved across all regions amid a more favorable margin environment. In Europe, stronger processing partially offset weaker refining and biodiesel results. Argentina witnessed lower processing and refining performance.
Softseed processing volumes increased to 3,606 thousand metric tons from 3,129 thousand metric tons. Refined softseed oil production rose to 872 thousand metric tons from 711 thousand metric tons. Global distribution results weakened, partly offset by stronger canola origination in Canada and Australia.
Bunge's Other Segment TrendsTropical Oils and Specialty Ingredients sales increased 7.3% year over year to $1.30 billion. However, adjusted segment EBIT declined 68.6% to $16 million from $51 million. Volumes increased to 674 thousand metric tons from 639 thousand metric tons.
Results were pressured by geopolitical trade disruptions, commissioning expenses, plant transition costs and ramp-up activities associated with tropical oils and soy protein concentrate operations. Stronger global tropical oils merchandising provided some support.
Grain Merchandising and Milling sales increased 5.2% to $6.76 billion. However, adjusted segment EBIT declined 27.5% to $87 million from $120 million. Higher global grain merchandising and commercial services results were more than offset by weaker ocean freight, sugar and wheat milling performance.
BG's Cash Flow and Balance Sheet UpdatesCash used for operating activities totaled $2.30 billion in the first nine months of 2026 compared with $503 million in the year-ago period. The higher outflow primarily reflected working capital changes, partially offset by increased net income and depreciation following the Viterra transaction.
Adjusted funds from operations increased to $2.01 billion from $1.18 billion. At September-end, cash and cash equivalents stood at $524 million compared with $1.14 billion at 2025-end. Short-term debt increased to $6.47 billion from $3.88 billion.
Bunge Maintains 2026 Earnings OutlookBunge maintained its full-year 2026 adjusted earnings guidance of $9.25-$9.75 per share. The company expects slightly lower Soybean Processing and Refining results and weaker Tropical Oils and Specialty Ingredients performance than previously anticipated.
Meanwhile, expectations for Grain Merchandising and Milling improved, while Softseed Processing and Refining and Corporate and Other forecasts remained unchanged.
The company now projects an adjusted effective tax rate of 23-25% compared with its previous expectation of 22-26%. Net interest expense is expected to range between $640 million and $670 million, up from the earlier $620-$660 million forecast.
Capital expenditures are anticipated toward the higher end of the $1.5-$1.7 billion range. Depreciation and amortization are projected at approximately $975 million.
Bunge Stock’s Price Performance & Zacks RankShares of Bunge have gained 4.9% in a year against the industry's 8.8% decline.
Image Source: Zacks Investment Research
Bunge currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge’s Industry Peers Awaiting ResultsArcher Daniels Midland Company (ADM - Free Report) , scheduled to release third-quarter 2026 results on Nov. 3, has a trailing four-quarter average earnings surprise of 11.3%. The Zacks Consensus Estimate for Archer Daniels Midland’s earnings for the quarter is pegged at $1.63 per share, implying year-over-year growth of 77.2%.
The consensus estimate for Archer Daniels Midland’s revenues is pegged at $22.67 billion, indicating a rise of 11.3% from the prior-year figure. Archer Daniels Midland currently carries a Zacks Rank #2 (Buy).
Corteva, Inc. (CTVA - Free Report) , scheduled to release third-quarter 2026 earnings on Nov. 11, has a trailing four-quarter average earnings surprise of 21.91%. The Zacks Consensus Estimate for Corteva’s earnings for the quarter suggests a break-even performance. Corteva had reported a loss of 23 cents in the year-ago quarter.
The consensus estimate for Corteva’s revenues is pegged at $1.77 billion, indicating a decline of 32.5% from the prior-year figure. Corteva currently carries a Zacks Rank #5 (Strong Sell).
The Scotts Miracle-Gro Company (SMG - Free Report) , scheduled to release third-quarter 2026 results on Nov. 4, has a trailing four-quarter average earnings surprise of 11.8%. The Zacks Consensus Estimate for Scotts Miracle-Gro’s earnings for the quarter is a loss of $2.22 per share. SMG had reported a loss of $1.96 in the year-ago quarter.
The consensus estimate for Scotts Miracle-Gro’s revenues is pegged at $307.9 million, indicating a 20% decline from the prior-year figure. SMG currently carries a Zacks Rank of 4.
Key Takeaways A. O. Smith's adjusted EPS of 93 cents beat estimates, but earnings fell 1.1% year over year.North America sales rose 3%, while China sales fell 17% amid weak demand and business disruptions.A. O. Smith plans to sell an 81% stake in its China business in a deal valued at $400 million.
A. O. Smith Corporation (AOS - Free Report) reported third-quarter 2026 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate of 90 cents by 3.3%. The bottom line declined 1.1% year over year, as lower residential water heater volumes and higher input costs weighed on profitability.
Net sales of $940.5 million missed the consensus estimate of $959.99 million by 2% and fell 0.2% year over year. North America sales rose 3%, supported by 13% boiler sales growth, pricing benefits and Leonard Valve, while China sales dropped 17% in local currency.
Segmental Details of AOSA. O. Smith's quarterly sales in North America (comprising the United States and Canada operations) increased 3% year over year to $761.6 million. This uptick was driven by higher boiler volumes, benefits from pricing actions and a $15 million contribution from the Leonard Valve acquisition, partially offset by lower residential water heater volumes. Excluding Leonard Valve, organic sales increased 1%.
Segmental earnings were $179.9 million, up 0.1% year over year. The segment margin declined to 23.6% from 24.2% in the year-ago period, primarily due to lower residential water heater volumes and higher steel and freight costs. Higher boiler volumes, tariff refunds, pricing benefits and Leonard Valve contributions partially offset these headwinds.
Quarterly sales in the Rest of the World (including China, India and Europe) segment were $192.8 million, down 7.3% year over year. Sales included a favorable currency translation impact of $5 million, primarily related to China. Weak consumer demand and disruptions associated with the company's strategic assessment process affected China sales.
The segment's earnings were $10.5 million, down 31.8% year over year, due to lower China sales volumes, partially offset by continued cost-management actions. The segment margin declined to 5.4% from 7.4% in the year-ago quarter.
A. O. Smith's Margin DetailsAOS' cost of sales was $575.8 million, down 0.4% year over year. Selling, general and administrative expenses were $189.5 million, up 0.3% from the year-ago period.
Gross profit increased marginally year over year to $364.7 million from $364.5 million. The gross margin was 38.8% compared with 38.7% in the year-ago period. Interest expenses increased to $7.7 million from $3.6 million in the prior-year quarter.
AOS' Liquidity & Cash FlowAs of Sept. 30, 2026, AOS’ cash and cash equivalents totaled $234.5 million compared with $174.5 million at the end of December 2025.
At the end of the third quarter, long-term debt was $632.1 million compared with $112.7 million at the end of December 2025. The increase in the debt level was attributable to cash borrowed by the company under a new term loan for the acquisition of Leonard Valve.
In the first nine months of 2026, cash provided by operating activities totaled $429.4 million compared with $433.7 million in the year-ago period.
A. O. Smith's Share RepurchasesIn the first nine months of 2026, A.O. Smith repurchased 4.2 million shares for $260.6 million. As of the end of the third quarter, approximately 1.6 million shares were left to be repurchased under the share repurchase authorization.
AOS maintained its full-year 2026 share repurchase target of approximately $300 million, reflecting its continued commitment to returning capital to shareholders.
AOS' China Business DivestitureOct. 27, 2026, A. O. Smith announced definitive agreements under which CPE will acquire an 81% interest in its China business. AOS will retain a 19% stake and enter into a long-term brand licensing agreement.
The transaction values the China business at approximately $400 million on a cash-free, debt-free basis. Including the present value of future licensing payments, the total value is expected to exceed $500 million. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.
A. O. Smith's 2026 OutlookA.O. Smith expects 2026 net sales, excluding China, in the range of $3.27-$3.29 billion, implying growth of approximately 4%. The company updated its guidance to exclude the China business following the announced sale of a majority interest in the business.
Management currently projects adjusted earnings per share, excluding China, in the band of $3.42-$3.52. The outlook also excludes approximately $20 million in estimated pretax restructuring and impairment expenses related to the North America water treatment business.
AOS’ Zacks RankThe company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other CompaniesIn the third quarter of 2026, Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares with earnings of $0.73 per share a year ago.
Graco reported revenues of $586.39 million in the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares with year-ago revenues of $543.36 million.
Dover Corporation (DOV - Free Report) has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution.
Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%.
Allegion plc (ALLE - Free Report) reported third-quarter 2026 adjusted earnings of $2.60 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate of $2.49 by 4.4%, supported by strong organic growth and margin expansion.
Revenues increased 9.6% year over year to $1.17 billion, beating the Zacks Consensus Estimate of $1.13 billion by 3.4%. Organic revenues grew 7.2%, driven by strength in the Americas non-residential business, volume growth and price realization.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The race to build artificial intelligence infrastructure is creating enormous new risks that could threaten financing for the data centers powering the artificial intelligence boom, according to Aon CEO Greg Case.
In an interview with CNBC Wednesday, Case warned that clustering billions of dollars of equipment and computing capacity in a small number of locations could make some projects difficult to insure, with consequences for developers seeking financing.
"If you create them and you build them on top of each other, you've created concentration risk in a way in which it makes it more difficult to get insurance," Case said.
"If it's more difficult to get insurance, that means the financing structure is going to change completely. You can't access the debt markets," he said.
The potential financial exposure from operational disruptions is staggering, Case said.
"Data centers are literally going to measure business interruption at millions of dollars per minute," he told CNBC.
The warnings come as technology companies accelerate spending on data centers, electricity generation and other infrastructure needed to support AI. Those investments are creating opportunities for insurers, brokers and business risk consultants. They're also raising questions about whether traditional insurers have sufficient capacity to absorb the risks.
In its third-quarter earnings, Aon reported a record pipeline of data center projects, helping drive 7% organic revenue growth in its commercial risk business during the quarter. Adjusted earnings per share increased 10% to $3.36, while adjusted operating margin expanded 70 basis points to 27%. One basis point equals 0.01%, or 1/100th of 1%.
The company has developed specialized insurance facilities, or pools of capacity to cover specific industries or risks, to address growing demand, including a $10 billion data center facility and a $2.5 billion energy facility.
Managing the risks begins well before a policy is written, according to Case. Aon said it is working with developers to design and locate facilities, reduce the potential for business interruption and structure insurance coverage that can support financing.
"These are engineering conversations around understanding risk," Case said.
A $17 billion bet on a riskier worldThe surge in demand for sophisticated risk management is also central to Aon's pending $17 billion acquisition of USI Insurance Services, which is expected to close in the fourth quarter.
The deal will combine USI with Aon's existing operations and NFP, which Aon acquired in 2024, creating a roughly $6.5 billion middle-market platform.
Case said smaller companies face many of the same increasingly complex risks as multinational corporations, but often lack access to comparable analytics, expertise and insurance solutions.
"Our middle market clients have exactly the same challenges, exactly the same risks they face every day, and they deserve to have the content, the insight, the capability that the largest companies in the world have," Case said.
Most industry insiders and experts anticipate AI will make insurance brokerage and consulting more efficient. Asked why Aon is investing billions in acquisitions rather than exclusively expanding its technology capabilities, Case said the two are not mutually exclusive.
"This is about talent and technology," he said. "You get those both right. That's how you build the relationships that matter for clients."
Aon expects $395 million in annual earnings benefits from the USI combination, including $280 million in cost savings and $115 million in revenue synergies.
The acquisition will be financed with debt, and the company expects to prioritize reducing leverage over the next two years.
AI cyber insurance risksAI is creating opportunities for insurers to better understand vulnerabilities, even as the technology introduces new threats that could generate widespread financial losses.
Researchers disclosed two critical vulnerabilities in PHP, a programming language used by roughly 70% of websites, on Oct. 21. The flaws could allow hackers to remotely execute malicious code on vulnerable servers without authentication. AI played a significant role in discovering and analyzing the vulnerabilities through cybersecurity firms Calif and Google's Wiz, along with OpenAI.
Asked whether cyber risks are escalating faster than insurers can respond, Case said the industry needs to expand beyond its traditional capital base to meet growing demand.
"We have to keep up. We have to continue to evolve," he said.
Case estimates the global insurance industry currently has about $4.5 trillion in capital. He believes that amount must double or triple to meet the growing needs across cyber, AI, data centers and other emerging risks.
"Call it 5 trillion to 10 to 15 trillion," Case said, outlining his vision for expanding the industry's capacity and clarifying remarks he made in the company's second-quarter earnings call.
His strategy involves tapping institutional investors, pension funds, sovereign wealth funds and wealthy individuals to help finance risks traditionally carried by insurance companies and reinsurers. Case estimates those sources represent a potential pool of approximately $250 trillion in capital — a fraction of which could substantially expand the market.
Aon is increasingly positioning itself not simply as a broker connecting companies with existing insurers, but as an intermediary helping create new pools of capital to absorb complex risks.
"Not just being a market taker or market optimizer for our clients, but a market maker creating new markets to sort of drive and address risk," Case said.
That creates opportunities for alternative asset managers and private investors seeking returns from insurance-linked investments, although investors must be able to evaluate the potential for large and correlated losses.
Case said the critical ingredient is the ability to quantify exposures accurately enough to give investors confidence to commit their capital.
Commercial insurance pricesWhile corporate risk is becoming more complex, some commercial insurance prices are declining and companies are beginning to see some relief after years of rising premiums.
But Case cautioned, this is not a prolonged period of lower insurance rates.
"Some are confusing that with it's a permanent soft market. Not the case at all," he said.
He said some corporate clients are using lower insurance prices as an opportunity to buy more protection rather than simply reduce spending.
"We have clients who literally, when they understand their exposure, even though the unit price might have been coming down, they completely restructure their program and buy more because they need more coverage," Case said.
The dynamic is helping Aon maintain growth despite softer pricing in commercial insurance and reinsurance markets.
Key Takeaways HPQ's Personal Systems revenues rose 18.5% to $11.77 billion in Q3 FY2026.Apple's Services revenues grew 12.1% to $30.74 billion, while Mac revenues jumped 28.7% YOY.HP trades at 0.50X forward sales versus Apple's 9.64X, making HP the more compelling valuation play.
HP Inc. (HPQ - Free Report) and Apple Inc. (AAPL - Free Report) are two prominent players in the computer hardware industry, serving overlapping but distinct segments of the technology market. HP focuses on personal computing, workstations, printing and related services, while Apple operates an integrated ecosystem spanning iPhones, Mac computers, iPads, wearables and digital services.
With artificial intelligence (AI) creating new opportunities across personal computing and consumer electronics, both companies are investing in AI-enabled products to strengthen customer engagement and support growth. So, which stock offers greater investment potential? Let's examine their growth prospects, competitive advantages, risks and valuations to determine which presents the more compelling investment case.
The Case for HPQ StockHPQ is positioned to benefit from the growing adoption of AI-capable personal computers, demand for premium commercial devices and the expansion of industrial printing. Its strategy emphasizes higher-value products, recurring printing relationships and cost controls to protect profitability amid rising component costs.
AI PCs represent an increasingly important growth opportunity for HPQ. In the third quarter of fiscal 2026, AI PCs accounted for 46% of Personal Systems shipments, up from 44% in the preceding quarter. Management expects the mix to reach approximately 50% by fiscal year-end, increase to 60-70% in fiscal 2027 and exceed 70% in fiscal 2028. HPQ is also working with more than 150 software partners to expand AI use cases.
HPQ's premium and commercial PC strategy is already delivering revenue growth despite declining unit volumes. In the third quarter of fiscal 2026, Personal Systems revenues increased 18.5% year over year to $11.77 billion, while PC units declined 15.8%. Average selling prices rose 40.8%, reflecting pricing and a richer product mix. Commercial Personal Systems revenues increased 21.9%, while Consumer revenues grew 10.1%.
HPQ also gained 2.6 percentage points of sequential share in premium PCs and 1.8 points in workstations. These developments highlight its ability to prioritize higher-value categories even as the broader PC market faces pressure. Cost management and operational efficiency remain important to HP's earnings outlook. Rising memory and storage costs have pressured Personal Systems margins, which
The Zacks Consensus Estimate for HPQ's fiscal 2027 revenues is pegged at $60 billion, indicating year-over-year growth of 8.5%. The Zacks Consensus Estimate for HPQ’s fiscal 2027 earnings is pegged at $3.23, indicating year-over-year growth of 3.5%. The estimates have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
The Case for AAPL StockApple is positioned to capitalize on its integrated hardware and software ecosystem, growing Services business and expanding AI capabilities. Its strategy combines premium devices, proprietary silicon, privacy-focused AI features and recurring digital services to strengthen customer loyalty and encourage product upgrades. Apple's expanding AI capabilities provide an important growth opportunity. In September 2026, the company introduced the iPhone 18 Pro, featuring its A20 Pro chip and enhanced Siri AI capabilities.
Apple’s updated assistant is designed to use personal context and perform actions across applications, while Apple's Private Cloud Compute architecture supports its privacy-focused approach to AI. The A20 Pro chip incorporates a second Neural Engine and uses 2-nanometer technology, strengthening Apple's ability to run advanced AI workloads on its devices. These developments could encourage upgrades and reinforce differentiation in the premium smartphone market.
Apple's installed base and Services business provide a substantial foundation for recurring revenues. In the third quarter of fiscal 2026, Services revenues increased 12.1% year over year to $30.74 billion, accounting for 28.1% of total sales. The company recorded revenue highs across all Services categories, while paid subscriptions exceeded 1.5 billion. Apple is growing across cloud services, payments, the App Store, AppleCare, Music and video.
The Mac business is another potential growth driver. Third-quarter fiscal 2026 Mac revenues increased 28.7% year over year to $10.35 billion, supported by demand for MacBook Neo and MacBook Pro. Apple reported records for both customers new to Mac and existing users upgrading their devices. Nevertheless, Apple faces several risks. Supply constraints are expected to intensify across iPhone, Mac and iPad, while rising memory costs could pressure profitability.
Management expects fourth-quarter fiscal 2026 revenue growth of 9-11%, slower than the 16.4% reported in the June quarter. The Zacks Consensus Estimate of Apple’s fiscal 2026 revenues is pegged at $477 billion, indicating year-over-year growth of 14.7%. The Zacks Consensus Estimate for AAPL’s fiscal 2027 earnings is pegged at $8.86, indicating year-over-year growth of 18%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Stock Price Performance and Valuation of HPQ & AAPLShares of HPQ and AAPL have surged 45.7% and 26.5%, respectively, in the year-to-date period.
YTD Performance Chart
Image Source: Zacks Investment Research
HPQ is trading at a forward 12-month Price-to-Sales ratio of 0.48X, much lower than AAPL’s P/S multiple of 9.55X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: HPQ vs. AAPLHPQ offers compelling business opportunities through its expanding AI PC portfolio, growing premium commercial PC segment and industrial printing operations. AI PCs accounted for 46% of Personal Systems shipments in the third quarter of fiscal 2026, with further growth expected. HP is also strengthening recurring printing revenues through subscription offerings while expanding tank and 3D printing. Additionally, restructuring initiatives, product redesign and cost optimization could improve operational efficiency and support profitability as component costs stabilize. Apple’s growing Services business, large installed base, AI-enabled product ecosystem and substantial cash generation support its long-term growth outlook. However, from the valuation perspective, HPQ seems to be a better choice right now. HPQ and AAPL carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For Nio (NIO +0.15%) investors, selling more vehicles is encouraging, especially as it needs scale to break even for the full year 2026, as management has targeted. But turning those sales into sustainable profits? That's where the automotive industry gets challenging.
The electric vehicle (EV) maker delivered 109,178 vehicles during the third quarter, increasing 25.4% year over year, according to its delivery update. That's solid growth, but investors already know the delivery total. The upcoming earnings report needs to tell us more about the financial quality of those sales.
One figure deserves particular attention: vehicle margin. Nio has made substantial progress on that front, and protecting those gains could matter more than investors realize.
Can Nio protect margins? Bear with me for a little investing 101. Vehicle margin simply measures the percentage of vehicle revenue remaining after the associated cost of sales. It tells investors how much of that revenue remains to cover expenses such as research, development, and marketing. Nio's vehicle margin reached 18.5% in the second quarter, up from 10.3% a year earlier and 18.8% in the first quarter of 2026. The longer trend shows how far the business has come, and it's impressive, even with some bumps along the way.
Data source: Nio SEC filings. Chart source: Author using ChatGPT.
There are reasons to believe Nio can defend its vehicle margin gains, in part thanks to rising premium-brand deliveries. During its second-quarter earnings call, management said its premium ES8 and ES9 SUVs each generated vehicle margins above 20%.
Further, third-quarter deliveries of the namesake Nio brand increased approximately 69% year over year, outpacing Firefly's roughly 52% growth, while Onvo deliveries declined approximately 26%. That shifted the premium brand's share of deliveries from about 42% to 57%. If that shift favors higher-margin models such as the ES8 and ES9, it should help support the company's recent vehicle margins above 18%.
Nio's ES9. Image source: Nio.
But there is a bit of a catch. Management also highlighted rising costs for memory chips, batteries, and other materials. Its stated aim during the earnings call was to keep third- and fourth-quarter vehicle margins around the second-quarter level.
Investors shouldn't treat another sequential margin increase as a given. Holding near 18.5% would still represent meaningful improvement from the 14.7% recorded in last year's third quarter. Sometimes holding your ground is still progress, especially when costs are driving in the opposite direction.
$3.33+$0.01 (+0.15%)
NYSE · As of 1:14 PM ET 10/29/26
What investors should watch Nio needs more than growing sales to establish sustainable company-wide profitability. It needs to continue controlling costs and managing incentives amid a brutal Chinese auto price war. Its second-quarter results emphasize the remaining gap between GAAP and adjusted figures: Nio reported an operating loss of approximately RMB347 million, although adjusted operating profit, which excludes certain items, was approximately RMB207 million.
Maintaining stronger vehicle margins while expanding sales would help Nio keep more of that growth from being swallowed by costs. Breaking even and then turning a profit also depends on expense discipline: Higher gross profit won't get the company very far if operating expenses absorb the improvement. Management has targeted full-year breakeven on a non-GAAP operating basis in 2026, giving investors a concrete benchmark for judging progress. Protecting vehicle margins while keeping operating expenses in check would help turn rising sales into progress toward that goal.
Nio doesn't need another dramatic margin jump to deliver an encouraging quarter, or to achieve its full-year breakeven target. Holding near recent levels despite rising costs -- and translating that discipline into a stronger bottom line -- Nio is getting closer to turning real bottom-line profits. That would give long-term investors something absolutely worth celebrating.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Canadian National (CNI - Free Report) is headquartered in Montreal Quebec, and is in the Transportation sector. The stock has seen a price change of 25.76% since the start of the year. Currently paying a dividend of $0.65 per share, the company has a dividend yield of 2.09%. In comparison, the Transportation - Rail industry's yield is 0.86%, while the S&P 500's yield is 1.37%.
Looking at dividend growth, the company's current annualized dividend of $2.60 is up 2.2% from last year. Over the last 5 years, Canadian National has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.31%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CN's current payout ratio is 48%, meaning it paid out 48% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CNI for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.80 per share, which represents a year-over-year growth rate of 6.23%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CNI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Ares Capital (ARCC +2.10%) has long been a popular stock among income investors, thanks to its high-yielding dividend. The business development company (BDC) currently offers a yield of more than 10%, significantly above the broader market (the S&P 500 yields around 1.1%).
However, its latest earnings report raised some questions about the sustainability of that payout. Meanwhile, a newly announced acquisition could help strengthen its future earnings. Here's a closer look at whether Ares Capital is an attractive investment opportunity following these developments.
Image source: Getty Images.
Ares Capital's latest earnings: Dividend coverage is getting tighterAres Capital reported $0.46 per share of core earnings in the third quarter, down from $0.50 per share in the year-ago period. That fell short of its quarterly dividend payment of $0.48 per share. That's not an immediate concern, but it does represent a change from the excess dividend coverage it had previously delivered.
That prior excess income currently provides the BDC with a sizable cushion. Ares Capital's CFO Scott Lem noted on the third-quarter conference call that the company finalized its 2025 tax return and determined that it carried forward $1.37 per share of taxable income for distribution this year.
Meanwhile, CEO Kort Schnabel stated on the call that: "We continue to believe ARCC's current regular dividend appropriately reflects the underlying earnings power of the business. While earnings will naturally fluctuate from quarter-to-quarter, the strength of our portfolio, attractive market pricing and terms, the current interest rate environment, and the expected benefits from the acquisition I discussed earlier reinforce our confidence in the current dividend level."
$18.92+$0.39 (+2.10%)
NASDAQ · As of 1:12 PM ET 10/29/26
The MFIC acquisition could helpSpeaking of that acquisition, Ares Capital recently agreed to buy fellow BDC MidCap Financial Investment Corporation (MFIC +0.49%) in a $2.6 billion transaction, including assumed liabilities. Ares expects that the deal will be modestly accretive to core earnings per share and supportive of future dividends. The combination would expand ARCC's portfolio to more than 800 companies with over $31 billion of investments.
MidCap Financial currently has a nearly $2.8 billion investment portfolio across 229 portfolio companies. Schnabel noted on the call that "Based on the depth of our due diligence on each investment in the portfolio," the company believes it has an excellent foundation in place to continue its successful acquisition track record. Once it closes the MFIC deal, it will have acquired all three of the largest BDCs in operation at the time of its IPO more than 20 years ago. These deals have helped ARCC become the largest publicly traded BDC, while supporting its dividend. It has paid a stable or increasing dividend for 69 straight quarters (over 17 years).
Valuation: Is ARCC a buy?ARCC currently trades around $18.75 per share. At its current annualized dividend rate ($1.92 per share), the BDC offers a 10.2% yield. Meanwhile, the company reported that its net asset value (NAV) per share was $19.31 at the end of the third quarter. That's about a 3% discount to its NAV. That's not necessarily a bargain, considering its NAV has declined from $19.94 per share over the past year due to deteriorating credit quality. However, nonaccruals were only 2.4% at the end of the quarter (unchanged sequentially) and remain below its roughly 3% historical average since the global financial crisis, and below its peers' more than 4% average during that period.
Ares Capital has a solid history of delivering a stable-to-growing NAV. Since inception, its NAV per share has grown by more than 25%, showcasing its disciplined underwriting and ability to grow shareholder value.
Overall, the BDC currently offers a potential double-digit income return before any share-price appreciation, provided it can maintain its current dividend level. It appears to be in a solid position to sustain its dividend, thanks to its ample spillover income, the modest expected accretion from the MFIC deal, and the underlying earnings power of its business. That makes Ares Capital look like a solid buy for income-seeking investors after its earnings report.
Still an attractive income-focused investmentAres Capital's latest results weren't overly impressive, with its core earnings falling short of its dividend and credit quality weakening modestly. However, the company maintains a diversified portfolio, and its pending acquisition of MidCap Financial Investment Corporation could improve its future earnings power. With shares trading below its net asset value and yielding more than 10%, I think Ares Capital remains an attractive option for income-focused investors willing to accept the risks of private credit. I'd keep a close eye on dividend coverage and non-accrual loans in the coming quarters to ensure the payout remains sustainable.
Key Takeaways Gen Digital's Q2 revenues rose 12% to $1.37 billion, while non-GAAP EPS climbed 19% to 74 cents.GEN's Trust-Based Solutions revenues surged 26% to $511 million.GEN raised fiscal 2027 revenue guidance to $5.465-$5.515 billion and EPS guidance to $2.93-$2.98.
Gen Digital Inc. (GEN - Free Report) reported second-quarter fiscal 2027 non-GAAP earnings of 74 cents per share, which beat the Zacks Consensus Estimate by 2.78%. The bottom line increased 19% year over year.
Quarterly revenues of $1.37 billion surpassed the consensus estimate by 2.6% and increased 12% year over year. Growth was driven by strong demand across Cyber Safety and Trust-Based Solutions, particularly financial wellness offerings. Paid customers reached 83 million, up 6 million year over year and 2 million sequentially.
GEN Extends Double-Digit Bookings GrowthGen Digital delivered its sixth consecutive quarter of double-digit bookings growth. Bookings increased 10% year over year to $1.347 billion, reflecting sustained demand across both operating segments. Revenues exceeded the high end of management's guidance range of $1.325-$1.35 billion.
Direct revenues increased 6% year over year to $1.074 billion, supported by continued membership adoption and financial wellness growth. Partner revenues jumped 40% to $295 million, benefiting from momentum across employee benefits, financial marketplaces and telecommunications channels.
Gen Digital's Cyber Safety Business Delivers Record MarginsCyber Safety Platform revenues increased 5% year over year to $858 million from $814 million. Segment bookings grew 4% on a constant-currency basis, supported by strong renewals, cross-selling and upselling within the Norton portfolio.
Segment operating income increased 7% to $534 million, while operating margin expanded 100 basis points to a record 62%. Management highlighted the growing adoption of higher-tier Norton 360 memberships and improved customer engagement. Norton 360 also exceeded a $1.7 billion annualized revenue run rate.
GEN continues to invest in AI-powered protection, including Safe AI, scam detection and enhanced VPN capabilities. Management expects Cyber Safety to maintain mid-single-digit revenue growth and operating margins above 60%.
GEN Sees Strong Growth in Trust-Based SolutionsTrust-Based Solutions revenues increased 26% year over year to $511 million from $406 million. Bookings rose 24%, driven by financial wellness adoption, stronger marketplace activity and consistent performance across identity protection offerings.
Segment operating income increased 24% to $152 million, while operating margin remained stable at 30%. MoneyLion's Instacash solution recorded strong origination growth, supported by record new-user onboarding and increased advances per user.
Engine's marketplace also demonstrated healthy momentum, with consumer product inquiries more than doubling year over year. GEN added 18 partners during the quarter. Meanwhile, redesigned LifeLock experiences improved conversion and upselling, supporting broader adoption of higher-tier identity offerings.
Gen Digital Benefits From Operating EfficienciesGen Digital generated non-GAAP operating income of $686 million, up 10% year over year. Non-GAAP operating margin was 50.1% compared with 51.1% in the year-ago quarter, reflecting changes in business mix.
Non-GAAP operating expenses increased 4% to $415 million. Management attributed efficiency improvements partly to AI-driven automation across customer support, marketing and engineering.
Non-GAAP net income increased 15% year over year to $444 million. The diluted share count declined to 603 million from 624 million, supporting earnings growth. The company also recorded its 12th consecutive quarter of double-digit non-GAAP earnings growth.
GEN Maintains Strong Cash Flow and Capital ReturnsAs of Oct. 2, 2026, Gen Digital had cash, cash equivalents and restricted cash of $589 million, up from $564 million in the preceding quarter. Debt principal declined sequentially to $8.185 billion from $8.230 billion.
Operating cash flow totaled $326 million during the quarter, while free cash flow reached $323 million. The company repurchased $171 million in shares, paid $76 million in dividends and repaid $45 million of debt.
Net leverage declined below 2.9 times, while approximately $1.8 billion remained available under the existing share repurchase authorization. GEN declared a quarterly dividend of 12.5 cents per share, payable Dec. 9, 2026, to shareholders of record as of Nov. 16.
Gen Digital Raises FY27 OutlookEncouraged by strong first-half performance, Gen Digital raised and narrowed its full-year fiscal 2027 guidance.
The company now expects non-GAAP revenues of $5.465-$5.515 billion compared with its previous projection of $5.375-$5.475 billion. Non-GAAP earnings are expected between $2.93 and $2.98 per share, up from the prior guidance of $2.87-$2.97.
For the third quarter of fiscal 2027, GEN projects revenues between $1.365 billion and $1.390 billion, suggesting 10-12% year-over-year growth. Non-GAAP earnings are expected in the range of 73-75 cents per share, indicating growth of 15-18%.
GEN’s Zacks Rank & Other Stocks to ConsiderGEN currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector include ACI Worldwide (ACIW - Free Report) , Affirm (AFRM - Free Report) and AMETEK (AME - Free Report) . While AFRM and AME sport a Zacks Rank #1 (Strong Buy) each, ACI Worldwide carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACI Worldwide shares have surged 14.3% in the year-to-date period. ACI Worldwide is set to report third-quarter 2026 results on Nov. 5.
Shares of Affirm have lost 2.3% year to date. Affirm is set to report first-quarter fiscal 2027 results on Nov. 5.
Shares of AMETEK have rallied 19.9% year to date. AMETEK is slated to report third-quarter 2026 results on Nov. 3.
Key Takeaways ALGN's Q3 earnings rose 7.3% to $2.80 per share, while sales grew 1.9% to $1.01 billion, beating estimates.
Clear Aligner shipments rose 6.6%, while Systems revenues fell 7.6% amid a shift to lower-priced scanners.
ALGN cut its 2026 revenue outlook to $4.11-$4.13 billion, sending shares down 0.7% in after-hours trading.
Align Technology, Inc. (ALGN - Free Report) reported third-quarter 2026 non-GAAP earnings of $2.80 per share, up 7.3% year over year. The figure beat the Zacks Consensus Estimate by 1.5%. Revenues increased 1.9% to $1.01 billion and surpassed the consensus mark by approximately 1.5%.
The quarterly results benefited from higher Clear Aligner shipments, improved doctor utilization and broad-based international growth. Clear Aligner shipments increased 6.6% year over year to 690,635 cases.
Following the announcement, ALGN shares fell 0.7% in the after-market session yesterday.
ALGN's Clear Aligner Business Drives GrowthClear Aligner revenues increased 4.2% year over year to $839.3 million, reflecting higher shipment volumes, price increases, lower net deferrals and higher non-case revenues. These gains were partly offset by unfavorable foreign exchange, higher discounts and an unfavorable geographic and product mix.
A record 90,910 doctors submitted Invisalign cases, while doctor utilization increased 3.4% year over year. International markets supported growth, with double-digit shipment increases across Latin America and EMEA. APAC retail shipments grew 16%, supported by demand from orthodontists and general practitioner dentists.
North American orthodontist shipments increased year over year for the first time in six quarters, supported by double-digit growth in dental service organization shipments. However, general practitioner retail demand remained pressured amid continued consumer spending challenges.
Align's Systems Revenues Face Pricing PressureImaging Systems and CAD/CAM Services revenues declined 7.6% year over year to $175.5 million. The decline reflected a shift toward lower-priced scanner configurations and flexible acquisition models, including leasing, rentals and certified pre-owned systems.
However, scanner unit placements increased at a double-digit rate year over year. The global installed base expanded to more than 157,000 systems. Management indicated that scanner pricing stabilized on a comparable-product basis, while flexible purchasing options continued to support customer adoption.
The expanding scanner footprint also creates opportunities for recurring software and services revenues through increased utilization of Align's digital dentistry platform.
ALGN's Operating Margin Expands Despite Cost PressuresThird-quarter gross margin expanded approximately 450 basis points year over year to 68.7%, primarily reflecting operational efficiencies and the absence of significant prior-year charges. Non-GAAP gross margin remained flat at 70.4%, reflecting higher transportation costs, lower Clear Aligner average selling prices and unfavorable product mix.
Total operating expenses declined 2.7% year over year to $528.3 million. GAAP operating margin expanded 700 basis points to 16.7%, while non-GAAP operating margin improved 50 basis points to 24.4%.
Align Strengthens Cash Position and Shareholder ReturnsAlign ended the third quarter with $1.14 billion in cash and cash equivalents compared with $1.10 billion at the end of the preceding quarter. Operating cash flow totaled $183.2 million, while free cash flow reached approximately $138 million after capital expenditures of $45.1 million.
The company repurchased approximately 627,300 shares for $103.3 million during the quarter.
ALGN Sets Q4 View and Updates 2026 OutlookFor the fourth quarter of 2026, Align expects worldwide revenues of $1.00-$1.02 billion. Clear Aligner volume is projected to increase in the low-single-digit range year over year, while average selling prices are expected to decline approximately 1%. Systems and Services revenues are expected to be in the band of $170-$180 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.05 billion.
For 2026, worldwide revenues are now projected to be in the $4.11-$4.13 billion band, suggesting a reduction from the previous outlook. Clear Aligner volume and revenue growth are expected at approximately 5-6%, while Systems and Services revenues are projected to be in the $715-$725 million range. The Zacks Consensus Estimate for full-year revenues is pegged at $4.15 billion.
Our TakeAlign Technology exited the third quarter of 2026 on a solid note, with both earnings and revenues beating their respective estimates. The company’s financial results are supported by a record number of doctors submitting Invisalign cases, record third-quarter Clear Aligner shipments, improved doctor utilization and broad-based international growth.
However, management lowered its 2026 revenue outlook, primarily reflecting softer expectations for the Systems and Services business. The revised guidance also incorporates slightly lower Clear Aligner volume and average selling price (ASP) assumptions, driven by an unfavorable geographic and product mix and foreign exchange headwinds.
The expansion in operating margin during the quarter is encouraging, reflecting disciplined cost management and productivity improvements. However, declining Systems and Services revenues remain a concern.
ALGN’s Zacks Rank and Key PicksAlign Technology currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Agilent Technologies (A - Free Report) and Globus Medical (GMED - Free Report) .
Phibro Animal Health, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter fiscal 2026 adjusted EPS of 85 cents, which surpassed the Zacks Consensus Estimate by 18.06%. Revenues of $396.7 million beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC has an earnings yield of 8.9% compared with the industry’s 2.8%. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 18.36%.
Agilent Technologies, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter fiscal 2026 adjusted EPS of $1.62, which exceeded the Zacks Consensus Estimate by 9.5%. Revenues of $1.88 billion topped the Zacks Consensus Estimate by 2.1%.
A has an earnings yield of 3.7% compared with the industry’s 2.8%. The company’s earnings outpaced estimates in two of the trailing four quarters, missed once and broke even in the other, the average surprise being 3.8%.
Globus Medical, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.34, which exceeded the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million outperformed the Zacks Consensus Estimate by 0.4%.
GMED has an estimated earnings yield of 6.6% against the industry’s 2.3% decline. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 27.9%.
COLUMBUS, Ohio, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the leading technology company in car insurance, shared an editorial by Alex Timm, Founder and CEO of Root Insurance. In the editorial, Timm states the importance of insurance companies preparing for the new frontier of agentic commerce.
The rapid adoption of AI agents could fundamentally transform the auto insurance industry by enabling consumers to effortlessly automate the comparison shopping process. This technological leap shifts market power away from expensive brand marketing campaigns and toward carriers equipped with advanced risk-pricing algorithms and seamless API integrations.
Timm emphasizes that agentic commerce could accelerate industry change, meaning that massive spend on brand awareness could no longer be as critical for success. Timm highlights the fact that “AI agents don’t value sports sponsorships, arena logos, or catchy jingles; they value the best price and coverage for each individual consumer.”
Insurance carriers will now have to compete more heavily on sophisticated pricing models, he states: “As AI agents drive pure price shopping, the ultimate winners should be the carriers that can identify and price risk. Success in this new era doesn't just mean offering the lowest price for every driver. The strategic advantage will be advanced segmentation and pricing.”
For customers, agentic technology creates a powerful tool that can automate shopping across many categories, including insurance. As a result, customers can continuously shop for the best prices and coverage for their demographic, location, car type, and driving record. “AI makes a task that would be improbable for a human—quoting with every insurance company possible—simple and automated,” Timm states.
Meta’s AI agent Muse topped 10.9 million downloads since its Sept. 8 launch and reached an estimated 2.5 million daily active users [1]. Timm reasons that as agentic commerce platforms drive this shift, forward-thinking carriers that embrace this technology will be better positioned to meet customer needs. He believes companies that can adapt quickly and accurately price risk will be rewarded, and that Root is well prepared for the transition.
The editorial was published on October 28, 2026, in Digital Insurance. Read the full op-ed here.
About Root, Inc.
Root Insurance is a technology company revolutionizing car insurance through data science and automation. Founded in 2015 and based in Columbus, Ohio, Root, Inc. (NASDAQ: ROOT) is the parent company of Root Insurance Company. The Root app has reached more than 18 million downloads and has analyzed close to 38 billion miles of driving data to deliver personalized, easy, and fair pricing. Root is available in 38 states and offers auto insurance to consumers across the United States through its direct-to-consumer channel, independent insurance agents, and distribution partners.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding Root, Inc. These forward-looking statements relate to, among other things, expectations about our future technological developments, our ability to successfully implement and utilize new technologies, and the anticipated impact of these technologies on our future business results and customer experience. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. We have based our forward-looking statements on our current expectations, estimates and projections about our industry and our company. We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties and assumptions that we cannot predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we have included in Root's Form 10-K for the year ended Dec. 31, 2025, and other SEC filings, cautionary language identifying important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. Copies of Root's Form 10-K and other SEC filings are available on the SEC's website, Root's website at ir.joinroot.com/investor-relations, or by contacting Root's Investor Relations office.
[1] "Meta's Muse AI agent hits 10.9 million downloads as ChatGPT slides 25%." Yahoo Finance, 20 Oct. 2026, finance.yahoo.com/markets/article/metas-muse-ai-agent-hits-109-million-downloads-as-chatgpt-slides-25-153532560.html
The market expects Affirm Holdings (AFRM - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis operator of digital commerce platform is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +52.2%.
Revenues are expected to be $1.22 billion, up 30.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.56% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Affirm Holdings?For Affirm Holdings, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +14.49%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Affirm Holdings will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Affirm Holdings would post earnings of $0.33 per share when it actually produced earnings of $4.62, delivering a surprise of +1,300.00%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Affirm Holdings appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of FTNT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Fortinet's Q3 EPS rose 23% year over year to 91 cents, while revenues climbed 20.5% to $2.08 billion.Billings grew 29.2% to $2.34 billion, driven by SASE Firewall, OT and AI security demand.Fortinet raised 2026 revenues, billings and EPS forecasts, with non-GAAP EPS now projected at $3.54-$3.58.
Fortinet (FTNT - Free Report) reported third-quarter 2026 non-GAAP earnings per share (EPS) of 91 cents, which beat the Zacks Consensus Estimate by 7.06% and rose 23% year over year.
Total revenues of $2.08 billion beat the consensus mark by 0.79% and increased 20.5% year over year. Demand was broad across customer segments, industry verticals and geographies.
Customers upgraded their network security infrastructure for the AI era. The SASE Firewall pillar kept up its momentum, and operational technology (OT) demand stayed strong. The U.S. large enterprise business contributed heavily, and the total value of deals greater than $1 million grew 51% year over year.
Total deferred revenues (current plus long-term portions combined) came in at $7.93 billion, up 19% year over year. The current portion was $3.96 billion as of Sept. 30, 2026, up 14.5%, its highest growth rate in five quarters.
Total billings increased 29.2% year over year to $2.34 billion, near the high end of the guided range of $2.25-$2.35 billion. SASE Firewall billings grew 31%, OT billings grew nearly 40%, and AI-driven security operations billings grew 15%. Management noted that price increases contributed roughly 10 percentage points to year-over-year billings growth, though pricing has stabilized compared with the first half of the year.
FTNT’s Q3 in DetailProduct revenues increased 36.8% year over year to $765 million, representing 36.8% of total revenues. Customers continued to shift toward higher-performing FortiGate models, which lifted average selling prices. Enterprises also bought FortiGates to secure AI data center and OT environments. Product demand held up even as lead times for certain components lengthened. During the quarter, an AI company developing frontier models chose Fortinet for a seven-figure expansion, deploying its high-end data center firewalls across five additional data centers.
Service revenues of $1.31 billion grew 12.7% year over year, accounting for 63.2% of total revenues. Service revenue growth was held back by new large enterprise customers whose service activations ramped up over time. Large expansion deals that folded existing service arrangements into enterprise agreements also weighed on growth. Management reiterated that the first quarter of 2026 marked the trough for service revenue growth. It pointed to 26% service billings growth as a leading indicator and expects 2027 service revenue growth to be higher than in 2026.
Margins of FTNTTotal GAAP gross margin was 79%, contracting 180 basis points (bps) year over year. Non-GAAP gross margin came in at 79.6%, contracting 200 bps year over year but within the guided range of 79-81%. The decline reflected the continued high mix of product revenues and rising component costs. In the first half, lower-cost inventory on hand had cushioned costs, and that benefit faded in the third quarter. Improving service gross margin partially offset the pressure.
GAAP operating margin expanded 220 bps year over year to 33.9% in the third quarter. On a non-GAAP basis, operating margin expanded 130 bps to a third-quarter record of 38.2%. That beat the high end of the 35-37% guidance, reflecting stronger-than-expected revenue growth and disciplined cost management.
FTNT’s Balance Sheet & Cash FlowFortinet exited the third quarter of 2026 with cash and cash equivalents and short-term investments of $4.80 billion, up from $4.07 billion at the end of the second quarter. Inventory rose to $591.2 million from $399.5 million at the end of 2025 as the company sourced components amid longer lead times.
Cash flow from operations was $946 million for the third quarter, up 44.4% from $655.2 million in the prior-year quarter. Free cash flow of $864.8 million grew 52.4% year over year from $567.5 million, representing a free cash flow margin of 41.6%. Adjusted free cash flow reached $912.2 million, up 41.2% year over year, representing a margin of 43.9%. Year-to-date free cash flow grew 74% to $2.84 billion.
Fortinet’s board approved an increase of about $1.2 billion to the share repurchase program, lifting the remaining authorization to $2 billion. Year-to-date repurchases stood at $972.8 million at the end of the third quarter, essentially unchanged from the first-half total, indicating no buybacks in the third quarter.
FTNT’s Key DevelopmentsFortinet launched the FortiGuard Inline AI Security Service, which delivers AI-specific inspection and guardrails to FortiGate customers through a cloud-delivered service. It also introduced the FortiLink SASE service, which lets FortiAP and FortiSwitch devices connect to FortiSASE. That allows organizations to secure small branches and remote sites without a dedicated on-site firewall.
NVIDIA selected Fortinet as a top OpenShell Reference Architecture Partner to secure AI. Fortinet and Oracle announced a collaboration combining OCI Enterprise AI with FortiAIGate to protect and govern AI applications and agents. Microsoft also selected Fortinet to join its Sovereign Partner Ecosystem to deliver sovereign AI security solutions to highly regulated industries.
Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall and was positioned highest for Ability to Execute for the second consecutive year.
Notable wins in the quarter included an eight-figure competitive OT win with a large transportation company. Fortinet also won an eight-figure deal to standardize and secure 1,500 store locations for a large U.S. retailer.
FTNT’s Q4 & 2026 GuidanceFortinet expects fourth-quarter revenues in the range of $2.155-$2.245 billion, which implies 15% year-over-year growth at the midpoint. Billings are estimated in the range of $2.775-$2.925 billion, implying 20% growth at the midpoint. The non-GAAP gross margin is expected in the range of 78-80%, while the non-GAAP operating margin is anticipated between 35.5% and 37.5%. Non-GAAP EPS is projected in the range of 93-95 cents.
For 2026, FTNT raised its billings and revenue outlook for the third time this year. It now predicts revenues of $8.125-$8.215 billion (up from the prior $8.02-$8.18 billion), implying 20% growth at the midpoint. Billings are expected in the range of $9.568-$9.718 billion (up from the prior $9.35-$9.55 billion), implying 28% growth at the midpoint. Service revenues are now projected at $5.15-$5.17 billion, trimmed from the prior $5.18-$5.22 billion. The non-GAAP gross margin is expected at 79.7-80.3% (prior: 79-81%), and the operating margin is projected at 36.5-37.5% (prior: 35-37%). Non-GAAP EPS is anticipated to be between $3.54 and $3.58 (up from the prior $3.41-$3.47).
FTNT’s Zacks Rank and Other Stocks to ConsiderCurrently, Fortinet carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have rallied 54.4% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $13.00 per share, up by a penny over the past seven days, indicating an increase of 66.9% year over year.
Shares of Applied Materials have jumped 54.5% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.79 per share, unchanged over the past 30 days, indicating a rise of 35.8% year over year.
Cisco Systems shares have surged 45.3% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2027 earnings is pegged at $5.11 per share, unchanged over the past 30 days, indicating an increase of 18% year over year.
Key Takeaways Halliburton completes its first ROCS deployment in Brazil with Petrobras for a deepwater subsea completion.ROCS eliminates traditional control umbilicals, reducing equipment needs and simplifying well completions.Successful ROCS deployment lays the groundwork for wider applications across global offshore markets.
Halliburton Company (HAL - Free Report) , through its Optime service, has completed the first deployment of its Remote Operated Control System (ROCS) technology in Brazil in collaboration with Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) . The technology was used to install a subsea smart completion on a deepwater well, marking an important step in simplifying offshore completion operations.
The deployment demonstrates how remotely operated technology can reduce equipment requirements and improve operational efficiency in complex deepwater environments.
Halliburton's ROCS Technology Simplifies Offshore OperationsThe ROCS technology eliminates the need for traditional control umbilicals during subsea completion operations, reducing equipment requirements and simplifying offshore execution.
By removing these conventional control systems, the technology offers a more streamlined approach to deepwater well completions. This capability is particularly relevant as offshore operators develop increasingly complex deepwater resources and seek ways to improve operational efficiency.
HAL and Petrobras Collaborate on Deepwater DeploymentHalliburton and Petrobras worked closely throughout the project's planning, system integration, testing and offshore execution stages. Their collaboration helped ensure that the ROCS technology met the technical requirements of the deepwater completion operation.
Petrobras successfully used the system to install a subsea smart completion, demonstrating the practical application of remote-operated technology in challenging offshore conditions.
Timothy Horsfall, vice president of Testing and Subsea at Halliburton, emphasized that operators developing complex deepwater resources increasingly require technologies that simplify operations and improve execution efficiency. He noted that the project demonstrates ROCS' ability to reduce offshore complexity and provide a practical solution for subsea completions.
ROCS Deployment Opens Opportunities for Future ApplicationsThe successful deployment in Brazil establishes a foundation for additional ROCS applications across global offshore markets. It also demonstrates the potential of remotely operated completion systems to support complex subsea operations with fewer equipment requirements.
For Halliburton, the project represents another application of its subsea technology capabilities. Wider adoption of ROCS could create additional opportunities for the company as offshore operators seek simpler and more efficient completion solutions.
HAL and PBR’s Zacks Rank & Key PicksCurrently, HAL and PBR have a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector may consider some top-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) and Chord Energy Corporation (CHRD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary-based Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2026 earnings indicates 61.4% year-over-year growth.
Chord Energy is an independent E&P operator focused on the Williston Basin, with operations across the Bakken and Three Forks formations. The Zacks Consensus Estimate for CHRD’s 2026 earnings indicates 142.5% year-over-year growth.
The market expects Consolidated Edison (ED - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis utility is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of +9%.
Revenues are expected to be $4.77 billion, up 5.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 12.23% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Con Ed?For Con Ed, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.09%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Con Ed will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Con Ed would post earnings of $0.74 per share when it actually produced earnings of $0.83, delivering a surprise of +12.16%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Con Ed doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Utility - Electric Power industry, Fortis (FTS - Free Report) , is soon expected to post earnings of $0.63 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +6.8%. Revenues for the quarter are expected to be $2.17 billion, up 1.8% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Fortis has remained unchanged. Nevertheless, the company now has an Earnings ESP of -5.26%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Fortis will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways INVH's Q3 core FFO matched estimates at 48 cents per share, while revenues rose 6.3% to $731.28 million.Blended rental rate growth improved to 3%, while same-store NOI increased 1.1% and occupancy reached 96.4%.INVH raised its 2026 core FFO guidance midpoint to $1.96 per share and lifted its same-store NOI outlook.
Invitation Homes Inc. (INVH - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of 48 cents, meeting the Zacks Consensus Estimate. This compares to FFO of 47 cents a year ago.
Total revenues climbed 6.3% year over year to $731.28 million but fell short of the consensus mark by 1.1%. While same-store NOI advanced 1.1%. margin and occupancy dipped marginally.
INVH's Revenue Growth Gets a Homebuilding LiftRental revenues rose marginally from the year-earlier quarter to $597.34 million. Other property income climbed 7.7% to $78.20 million, while management fee revenues decreased 9.5% to $19.89 million.
The homebuilding business generated $35.85 million in sales. Related homebuilding cost of sales was $31.97 million. The new business broadened revenue sources, although modest rental growth and weaker fee income tempered the top-line expansion.
Invitation Homes' Same-Store Operations Remain PositiveSame-store core revenues were $571.66 million, up from $562.91 million, driven by higher average rents and other property income. The same-store portfolio comprised 76,687 homes, or 89.2% of wholly owned properties.
Core operating expenses rose 2.5% to $191.02 million, reflecting a 4.9% increase in controllable costs. Repair and maintenance expenses increased 4.3%, while utilities and property administration costs grew 8.8%.
NOI reached $380.64 million, versus $376.57 million a year ago, but the same-store NOI margin slipped to 66.6% from 66.9%. Geographically, the Midwest delivered 8.9% NOI growth, while the Southeast experienced a 0.8% decline.
INVH's New-Lease Pricing Shows ImprovementRenewal lease rates increased 4.3% compared with 4.5% a year earlier. New-lease rates declined 0.2%, a narrower drop than the 0.7% decrease a year ago. Blended rental rate growth improved to 3% from 2.9%.
Average monthly rent grew 1.8% to $2,492. Same-store average occupancy edged down 10 basis points to 96.4%, while turnover eased to 6.2% from 6.3%. Bad debt increased to 0.8% of gross rental revenues from 0.7%.
Invitation Homes Steps Up Dispositions and BuybacksINVH sold 658 wholly owned homes for gross proceeds of approximately $318 million and acquired 216 for around $74 million. Net dispositions of 442 homes generated approximately $245 million in proceeds, which the company used to fund stock repurchases.
During the quarter, the REIT bought back nearly 8.87 million shares for approximately $250 million. Its board authorized a further $500 million program on Oct. 26, extending its capital return initiative.
INVH's Liquidity Supports Capital AllocationINVH ended September with $1.34 billion in combined unrestricted cash and undrawn revolving-credit availability. Total debt was $8.81 billion, 89.8% unsecured. Fixed or swapped-to-fixed borrowings accounted for 90.2%, while 89.7% of wholly owned homes were unencumbered.
Net debt to trailing 12-month adjusted EBITDAre stood at 5.5 times, within management's 5.5-6 times target. In July, a $500 million offering of 4.95% senior notes due in February 2032 funded the partial prepayment of secured debt scheduled to mature in June 2027.
Invitation Homes Lifts 2026 Core FFO GuidanceFor 2026, Invitation Homes raised its core FFO per share guidance to $1.94-$1.98, with the midpoint rising a penny to $1.96. The Zacks Consensus Estimate is pegged at $1.96, matching the revised midpoint.
The same-store NOI growth midpoint was increased to 1.2% from 1.15%, while the core operating expense growth midpoint was lowered to 3.2% from 3.5%. The company also boosted its wholly owned home disposition midpoint to $950 million from $850 million and lifted the joint venture acquisition midpoint to $125 million from $100 million.
INVH’s Zacks RankCurrently, INVH carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Residential REITsEssex Property Trust, Inc. (ESS - Free Report) reported third-quarter 2026 core funds from operations (FFO) of $4.00 per share, missing the Zacks Consensus Estimate of $4.01. Core FFO grew marginally from $3.97 a year ago. Results reflected rising cost pressures, with total expenses increasing 5.4%, outpacing revenue growth.
Mid-America Apartment Communities, Inc. (MAA - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of $2.10, matching the Zacks Consensus Estimate. The metric declined 2.8% from a year earlier. Occupancy gains and improving renewal lease pricing during the quarter supported performance.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
T. Rowe Price Group, Inc. (TROW) Q3 2026 Earnings Call October 29, 2026 8:00 AM EDT
Company Participants
Linsley Carruth - Director of Investor Relations
Robert Sharps - CEO & Chair of the Board
Jen Dardis - CFO & Treasurer
Dorothy Sawyer - Head of Individual Investors and Retirement Plan Services & VP
Eric Veiel - President, Co-Head of Global Investments & Chief Investment Officer
Conference Call Participants
Glenn Schorr - Evercore ISI Institutional Equities, Research Division
Alexander Blostein - Goldman Sachs Group, Inc., Research Division
Daniel Fannon - Jefferies LLC, Research Division
Y. Cho - JPMorgan Chase & Co, Research Division
Alexander Bond - Keefe, Bruyette, & Woods, Inc., Research Division
Benjamin Budish - Barclays Bank PLC, Research Division
Michael Cyprys - Morgan Stanley, Research Division
William Katz - TD Cowen, Research Division
Patrick Davitt
Presentation
Operator
Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes. I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations.
Linsley Carruth
Director of Investor Relations
Hello, and thank you for joining us today for our third quarter earnings call. The press release and the supplemental materials document can be found on our IR website at investors.troweprice.com. We'll start our call with our Chair and CEO, Rob Sharps; and CFO, Jen Dardis, discussing the company's results. Dee Sawyer, our Head of Global Distribution, will then share an update on our ETF, SMA and models businesses. Then we'll open it up to your questions, at which time we'll be joined by our President, Co-Head of Global Investments and CIO, Eric Veiel. We ask that you limit it to one question per participant.
Key Takeaways West Pharmaceutical's Q3 adjusted earnings increased 35.7% year over year, while revenues rose 8.7%.Strong HVP Components sales and double-digit organic growth fueled WST's performance.WST raised its 2026 sales and adjusted earnings guidance following robust quarterly results.
West Pharmaceutical Services, Inc. (WST - Free Report) delivered adjusted third-quarter 2026 earnings per share (EPS) of $2.66, which increased 35.7% year over year. The adjustments include restructuring charges and expenses related to M&A activities, among others. The figure surpassed the Zacks Consensus Estimate by 22%.
GAAP EPS for the quarter was $3.02, reflecting an improvement of 57.3% from the year-ago figure.
West Pharmaceutical registered revenues of $874.5 million, up 8.7% year over year. Organic net sales increased 11.9%, driven by robust performance in the Proprietary Products segment, particularly the High-Value Product (“HVP”) Components business. The figure surpassed the Zacks Consensus Estimate by 5.9%.
Shares of WST were up approximately 5.5% in today’s pre-market trading. The company’s shares have gained 46.7% in the year-to-date period compared with the industry’s 11% growth. The S&P 500 Index has risen 12% in the same time frame.
Image Source: Zacks Investment Research
WST's Q3 Segment in DetailWST operates under two segments: Proprietary Products and West Vantage.
The Proprietary Products segment reported worldwide revenues of $728.8 million, up 12.6% year over year on a reported basis. Organically, revenues increased 16.6%. Our estimate for the segment’s revenues was pinned at $677.2 million.
HVP Components generated sales of $466.7 million, increasing 19.7% year over year. Organic sales grew 20.3%. The business accounted for 53% of total company sales, underscoring its significant contribution to quarterly performance.
HVP Delivery Devices recorded revenues of $99.1 million, flat year over year. However, organic revenues increased 26.4%, excluding foreign currency effects and the SmartDose 3.5mL divestiture impact. Standard Products revenues increased 2.9% to $163 million, reflecting organic growth of 3.1%.
West Pharmaceutical's Vantage Segment PerformanceRevenues in the West Vantage segment totaled $145.7 million, down 7.3% from the year-ago quarter’s level. The segment contributed 17% to total company sales. Our estimate for the segment’s revenues was pinned at $147.9 million.
On an organic basis, revenues declined 6.6%. Segment gross profit decreased to $24 million from $30.3 million, while operating profit fell to $15.5 million from $22.3 million.
WST's Market and Geographic PerformanceWithin Proprietary Products, Biologics revenues increased 15.3% year over year to $379.3 million. Organic sales advanced 23.2%, reflecting strong momentum in this market group.
Pharma revenues climbed 21.3% to $221.3 million, with organic growth of 21.4%. However, Generics revenues declined 5.7% to $128.2 million, while organic sales decreased 4.5%.
Geographically, Asia Pacific delivered the strongest reported growth, with revenues surging 42.4% to $97.1 million. Organic sales increased 41.9%.
Americas revenues rose 6.9% to $401.3 million, while organic growth reached 12.4%. Europe, the Middle East and Africa revenues increased 4.2% to $376.1 million, reflecting organic growth of 5.7%.
West Pharmaceutical's Margin AnalysisIn the quarter under review, gross profit increased 18% year over year to $347.4 million. Gross margin expanded 310 basis points (bps) to 39.7%, supported by stronger profitability in Proprietary Products. We had projected a 39.6% gross margin for the third quarter of 2026.
Selling, general and administrative expenses increased 9.9% to $112.9 million. Research and development expenses rose 7% to $18.3 million.
Adjusted operating profit totaled $221.5 million, reflecting a 30.2% improvement from the year-ago quarter’s figure. The adjusted operating margin expanded 420 bps to 25.3%, highlighting improved operating profitability amid strong sales growth. We had projected a 21.3% adjusted operating margin for the third quarter of 2026.
WST's Financial PositionWest Pharmaceutical exited the third quarter with cash and cash equivalents of $464.1 million compared with $521.4 million as of the end of the second quarter. Long-term debt was $202.9 million, which remained flat sequentially.
Cumulative net cash provided by operating activities for the first nine months of 2026 was $403.4 million compared with $503.7 million a year ago. Capital expenditures totaled $125 million, down from $209.8 million.
WST repurchased approximately $231 million worth of shares during the quarter, bringing year-to-date repurchases to $685 million. The company also announced an 18% increase in its quarterly dividend to 26 cents per share.
West Pharmaceutical Raises 2026 GuidanceWest Pharmaceutical raised its full-year 2026 revenue guidance to $3.41-$3.42 billion from the previous projection of $3.345-$3.380 billion.
Management also increased its organic net sales growth outlook to 11.3-11.6% from the earlier expectation of 10-11%.
For 2026, adjusted EPS is now anticipated to be in the range of $9.38-$9.48, up from the previous guidance of $8.85-$9.05. The updated outlook reflects management's confidence following strong third-quarter results.
The company also lowered its full-year capital spending forecast to $215-$220 million from the earlier guidance of $250-$275 million. No additional SmartDose 3.5mL product sales are expected during the remainder of 2026.
Zacks Rank & Stocks to ConsiderWST currently carries a Zacks Rank #4 (Sell).
Some stocks worth considering from the broader medical space are Glaukos (GKOS - Free Report) , Becton, Dickinson and Company (BDX - Free Report) and Globus Medical (GMED - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Glaukos, sporting a Zacks Rank #1, reported third-quarter 2026 earnings per share of 47 cents, which beat the Zacks Consensus Estimate by 491.67%. Revenues of $211 million surpassed the Zacks Consensus Estimate by 24.99%.
Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 138.6%.
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $3.23, which beat the Zacks Consensus Estimate by 2.87%. Revenues of $4.98 billion surpassed the Zacks Consensus Estimate by 1.81%.
Becton, Dickinson and Company has an estimated long-term earnings growth rate of 1.1%. BDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%.
Globus Medical, carrying a Zacks of 2, reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.
Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.
Key Takeaways Carrier's Q3 adjusted EPS rose 30% to 87 cents, while sales grew 12% to $6.26 billion.Commercial HVAC orders surged 60%, data-center orders jumped 300%, and backlog topped $8.5 billion.Carrier raised 2026 sales guidance to $23.8-$24 billion, while a $3.1 billion goodwill charge drove a loss.
Carrier Global Corporation (CARR - Free Report) reported exceptional third-quarter 2026 financial results, with adjusted earnings and net sales surpassing the Zacks Consensus Estimate and growing year over year.
Strong commercial HVAC demand and recovering residential markets supported 15% organic sales growth. Record backlog topped $8.5 billion, up approximately 60% from a year earlier, while tariff-related refunds also aided profitability.
However, CARR stock plunged 7.2% during today’s pre-market trading session, after the earnings announcement.
Carrier’s Q3 Earnings & Sales TrendsThe company posted third-quarter adjusted earnings of 87 cents per share, up 30% year over year and 7.4% above the Zacks Consensus Estimate of 81 cents.
Net sales of $6.26 billion also topped the consensus mark of $6.08 billion by 3.1% and grew year over year by 12%.
CARR's Commercial Orders Signal Sustained DemandOrganic orders increased approximately 35%, marking the fourth consecutive quarter of double-digit or better growth. Global commercial HVAC orders rose about 60%, while data-center orders surged roughly 300%. Non-data-center commercial orders grew 20%, while aftermarket sales rose 9%, pointing to demand beyond large data-center projects.
Data-center sales were about 2.5 times year-ago levels and remain on track for approximately $2 billion in 2026. Year-to-date data-center orders exceeded $3 billion, up roughly 350%. Carrier also signed multibillion-dollar long-term agreements with minimum volume commitments that are not included in backlog.
Carrier's Americas Sales and Margins AccelerateClimate Solutions Americas sales climbed 24% to $3,354 million from $2,711 million, with organic growth of 25%. Residential sales increased more than 30%, while commercial sales, excluding NORESCO, advanced more than 25%. Orders in the region rose about 60%.
Segment operating profit grew 40% to $745 million. Operating margin expanded 250 basis points to 22.2% from 19.7%. Organic growth and IEEPA-related refunds supported profitability, partially offset by rising input costs and tariffs.
CARR's Europe Unit Benefits From Heat-Pump DemandClimate Solutions Europe sales increased 3% to $1,335 million from $1,290 million. Organic sales rose 12%, driven by low-teens growth in residential and light commercial activity. Heat-pump and air-conditioning sales each advanced approximately 35%, while commercial sales grew in the high-single digits.
Divestitures reduced reported growth by seven percentage points and currency by two. Segment operating profit jumped 40% to $168 million, while margin widened 330 basis points to 12.6%. Results included a roughly 100-basis-point net benefit from correcting a prior-period item, offset by higher inventory-related reserves.
Carrier Faces Uneven Asia and Transportation DemandClimate Solutions Asia Pacific, Middle East & Africa sales rose 2% to $848 million. Organic growth of 3% reflected a 10% commercial increase, partly offset by a mid-single-digit decline in residential and light commercial activity. Sales fell 4% in China but rose 9% elsewhere in the region.
Climate Solutions Transportation revenues declined 3% to $726 million, as truck and trailer weakness outweighed container growth. Asia segment operating profit increased 6% to $103 million, while Transportation profit rose 2% to $117 million. Their margins improved 50 and 70 basis points to 12.1% and 16.1%, respectively.
CARR's Profit Gains Offset by Goodwill ChargeAdjusted operating profit increased 33% to $1,091 million, and the margin expanded 260 basis points to 17.4%, helped by favorable volume and pricing. The company recorded approximately $130 million in IEEPA refunds, adding around 10 cents to adjusted earnings per share after noncontrolling-interest effects.
However, a $3.1 billion noncash goodwill impairment in the European business drove a GAAP operating loss of $2,273 million against a $539 million profit a year earlier. GAAP earnings from continuing operations swung to a loss of $3.16 per share from income of 47 cents. A lower share count supported adjusted earnings, although the adjusted effective tax rate increased to 23.5% from 17.2%.
Carrier's Cash Flow Supports Shareholder ReturnsOperating cash flow reached $813 million compared with $341 million a year earlier. Capital expenditures increased to $139 million from $117 million, resulting in free cash flow of $674 million compared with $224 million in the prior-year quarter.
Carrier repurchased $399 million of stock and paid $198 million in dividends during the quarter. Cash and equivalents stood at $1,354 million at September-end compared with $1,555 million at year-end 2025. Net debt declined to $10,120 million from $10,278 million.
CARR Raises 2026 Sales View Despite Cost HeadwindsCarrier increased its 2026 sales outlook to $23.8-$24 billion from approximately $23 billion. It now expects organic growth of around 10%, up from a previous mid-to-high-single-digit forecast. Stronger expectations for the Americas residential, light commercial and commercial businesses underpinned the revision.
Adjusted operating profit guidance remains approximately $3.5 billion. Adjusted earnings are expected at $2.85-$2.90 per share compared with the prior target of roughly $2.90. Free cash flow and share repurchases are projected at about $2 billion and $1.5 billion, respectively, as pricing and productivity help offset $550-$600 million in unexpected incremental input costs.
CARR Stock’s Zacks Rank & Recent Construction ReleasesCarrier currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masco Corporation (MAS - Free Report) reported third-quarter 2026 adjusted earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.01 by 17.8%. The bottom line increased 22.7% from 97 cents a year ago. Net sales rose 2.6% year over year to $1.97 billion, beating the consensus mark of $1.93 billion by 1.8%.
Masco’s results benefited from pricing actions, cost-saving initiatives and lower year-over-year tariff costs, partially offset by higher commodity and employee-related expenses. Masco raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from the previous range of $4.40-$4.60, citing strong operational performance year to date. Reported earnings are projected to be between $4.51 and $4.61 per share.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.
Comfort Systems' management maintained a positive outlook, supported by strong customer demand, an expanding project pipeline and consistent operating execution. During the third quarter, Comfort Systems acquired Boys Electrical Contractors in Florida and a Texas-based modular construction business, strengthening its presence across electrical services and customized building components. FIX expects to sustain organic growth, high profitability and solid cash generation through the remainder of 2026 and into 2027.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. Strong rental demand and operating efficiencies supported the results. Fleet productivity, which combines rental rates, time utilization and mix, improved 6.5% year over year.
United Rentals raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected at $8.3-$8.4 billion compared with $7.98-$8.13 billion previously. Operating cash flow is expected at $6.25-$6.85 billion, up from $5.85-$6.65 billion. Management cited customer confidence, backlogs and large-project momentum as support for the raised outlook.
Key Takeaways T and GLW are expanding their telecom infrastructure presence amid rising fiber and AI connectivity demand.Corning's Optical Communications sales surged 44% in Q3, while AT&T's Advanced Connectivity revenue grew 6.1%.GLW shares gained 45.3% over the past year, while T fell 17.6%, highlighting contrasting stock performances.
AT&T, Inc. (T - Free Report) and Corning Incorporated (GLW - Free Report) are both prominent players in the U.S. telecommunications space. The companies operate in different segments of the telecom sector and are accelerating 5G and broadband infrastructure deployment across the country. The company is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. It provides wireless, local exchange, long-distance, broadband, Internet, video, managed networking, wholesale and cloud-based services. Corning is the leading supplier of optical fiber and connectivity solutions that support high-speed communications.
Per a report from Grand View Research, the U.S. Fiber to the Home market is projected to witness a 12.7% compound annual growth rate from 2025 to 2030. Let us delve deeper into the companies’ competitive dynamics to see which is better positioned in this broader sector.
The Case for GLWCorning is positioned to benefit from rising demand for optical connectivity as telecom operators and data center customers expand their networks. Its Optical Communications segment delivered a strong performance in the third quarter of 2026, with sales increasing 44% year over year to $2.38 billion and segment net income climbing 80% to $532 million.
Enterprise Networks was a key contributor, with sales advancing 84% to $1.53 billion as demand for AI-related connectivity products accelerated. Generative AI product sales more than doubled during the quarter. Carrier Networks also recorded growth, although at a more moderate 4%, supported by demand for data center interconnect solutions.
Customer commitments provide another source of support for the growth outlook. Corning secured four long-term, multibillion-dollar agreements during the quarter, including agreements with AT&T and Verizon Communications (VZ - Free Report) .
However, investors should consider the risks alongside this growth opportunity. The more modest expansion in Carrier Networks sales shows that demand is not increasing uniformly across the communications business. Moreover, Corning must invest in capacity to meet customer requirements. Growing competition, supply-chain uncertainty and fluctuations in global economic conditions remain major concerns. However, beyond telecom, Corning boasts a comprehensive portfolio consisting of display solutions, consumer electronics, automotive and solar markets. Such a diverse portfolio reduces its vulnerability to any one sector.
Based on our proprietary calculation, trailing 12-month return on invested capital reached 10.8%, above Corning's 10-year median of 7.8%, its five-year median of 8.7% and three-year median of 8.6%, but slightly below the industry median of 11.2%. Higher optical volumes and operating leverage are helping returns recover as the company expands its AI connectivity platform.
The Case for TT offers a different way to participate in telecom infrastructure growth. Rather than supplying optical communications equipment, the company operates fiber and wireless networks. It monetizes them through connectivity services for consumers and businesses.
In the third quarter of 2026, AT&T's consolidated revenues increased 5.3% year over year to $32.3 billion, while Advanced Connectivity service revenues grew 6.1% to $23.9 billion. Customer additions remained strong: the company recorded 769,000 Internet net additions, including 442,000 fiber connections, and added 379,000 postpaid phone subscribers. Its strategy of combining home internet and wireless services is also gaining traction, with 42.8% of advanced home internet customers maintaining a postpaid wireless account.
Fiber expansion is emerging as another avenue for growth. AT&T had reached more than 39 million fiber locations by the end of the third quarter and is targeting more than 60 million locations by the end of 2030. The company's network is also close to a substantial share of mapped U.S. data centers, creating opportunities to serve rising demand for high-capacity connectivity associated with AI workloads and enterprise networking.
However, AT&T faces challenges in translating customer growth into stronger per-customer economics and sustainable cash generation. Fiber ARPU declined 4% year over year in the third quarter as introductory offers, bundle discounts and the mix of acquired customers weighed on revenue per connection. The company faces stiff competition from other major players in the industry such as Verizon (VZ - Free Report) and T-Mobile.
The financial burden of network deployment is another consideration. AT&T reported $5.6 billion in capital investment during the third quarter, while its net debt-to-adjusted-EBITDA ratio increased to 3.13 times following its spectrum acquisition. High capex is putting pressure on free cash flow.
How Do Zacks Estimates Compare for GLW & T?The Zacks Consensus Estimate for GLW’s 2026 sales and EPS implies year-over-year growth of 18.2% and 29.1%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AT&T’s 2026 sales and EPS implies year-over-year growth of 2.6% and 1.9%, respectively. The EPS estimate for 2026 has moved northward over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of T & GLWOver the past year, GLW shares have gained 45.3% against T’s decline of 17.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, T’s shares currently trade at 8.19 forward earnings, significantly lower than 31.49 for GLW.
Image Source: Zacks Investment Research
AT&T or Corning: Which is a Better Pick?AT&T carries a Zacks Rank #3 (Hold), while Corning sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both GLW and T are taking several initiatives to capitalize on the emerging opportunities in the telecom sector. However, AT&T’s high debt obligation and greater exposure to stiff competition in the highly saturated U.S. telecom space are concerning. With strong momentum in the optical connectivity segment backed by AI-related demand and a better Zacks Rank, Corning is a better investment choice at present.
Key Takeaways GLW shares fell 14.1% in a month despite third-quarter core sales rising 19% and core earnings climbing 36%.GLW's Optical Communications sales surged 44%, fueled by AI demand, while segment net income jumped 80%.Corning's margins improved, but solar losses, consumer-market weakness and a 31.5X forward P/E pose risks.
Corning Incorporated (GLW - Free Report) shares have fallen 14.1% in the past month, creating a sharp contrast with the company’s improving earnings, optical growth and margin profile.
Image Source: Zacks Investment Research
The decline gives investors a more attractive entry point than a month ago, but it does not automatically make GLW inexpensive. Corning’s AI-related growth is accelerating and profitability is improving, while solar execution, consumer-market weakness and a premium valuation leave room for further volatility.
Corning's Pullback Contrasts With Strong GrowthCorning’s third-quarter operating performance moved in the opposite direction from its recent share price.
Core sales increased 19% year over year to $5.08 billion, while core earnings rose 36% to 91 cents per share. GAAP sales increased 18% to $4.86 billion and GAAP earnings advanced 56% to 78 cents per share.
The momentum is expected to extend into the fourth quarter. Management projects core sales of $5.2-$5.3 billion, representing approximately 19% year-over-year growth, with core earnings of 96 cents to $1 per share, up roughly 36%.
That operating trajectory provides a fundamental counterweight to the 14.1% stock decline.
GLW's AI Engine Keeps ExpandingOptical Communications remains Corning’s clearest growth engine. Third-quarter segment sales jumped 44% year over year to $2.38 billion and segment net income increased 80% to $532 million. Enterprise Networks sales surged 84% to $1.53 billion, while Gen AI product sales more than doubled.
The opportunity is also becoming more visible through customer commitments. Corning secured four long-term, multibillion-dollar customer agreements during the third quarter, including agreements with Verizon Communication (VZ - Free Report) and AT&T (T - Free Report) . Management said these arrangements help underpin the growth expected under its Springboard plan.
Corning is targeting a $30 billion annualized sales run rate by the end of 2028 and $40 billion by the end of 2030, with earnings expected to grow faster than sales.
Corning's Margins Add Fundamental SupportGrowth is translating into better operating efficiency.
Core gross margin expanded 150 basis points year over year to 40.5% in the third quarter. Core operating margin improved 310 basis points to 22.7%, while core return on invested capital rose 330 basis points to 16.7%. Adjusted free cash flow totaled $661 million during the quarter.
Through the first nine months of 2026, adjusted free cash flow reached $2.27 billion even as Corning continued investing in additional capacity to meet customer demand.
Those improvements matter because Corning’s growth strategy requires sizable manufacturing investments. Higher margins and returns give the company more flexibility to fund expansion without relying entirely on top-line growth.
GLW Still Faces Solar and Consumer RisksThe operating picture is not uniformly positive.
Solar sales climbed 37% year over year to $436 million in the third quarter, but the segment recorded a $7 million net loss. Corning said production at its wafer and module facilities continues to ramp at a slower pace than previously anticipated, leaving improved productivity and profitability as important execution tests.
Glass Innovations was another soft spot. Sales declined 3% to $1.51 billion and segment net income fell 10% to $328 million. Corning cited memory pricing as a significant factor affecting TV, handheld and notebook markets.
Reliance on large AI infrastructure agreements adds another consideration. Long-term contracts can improve visibility and share expansion risk with customers, but Corning still remains exposed to order timing, demand from major customers and the execution needed to support large capacity commitments.
Corning's Valuation Raises the BarThe stock-market decline has improved GLW’s entry price, but valuation remains the weakest part of the investment case.
Corning trades at 31.5X forward 12-month earnings, above 29.9X for the relevant Zacks sub-industry, 19.3X for the Zacks sector and 19.3X for the S&P 500. Its five-year median multiple is 17.6X.
That premium suggests investors are still paying substantially for expected AI-led growth even after the recent pullback. Strong execution in Optical Communications, continued margin expansion and better Solar profitability will likely be needed to support the multiple.
GLW's Momentum Signal Backs the Recovery CaseCorning currently carries a Zacks Rank #1 (Strong Buy). The stock also has a Momentum Score of A, Growth Score of B, Value Score of D and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The combination is favorable for investors focused on earnings momentum and growth. Zacks Style Scores are designed to complement the Zacks Rank, with A and B representing the more favorable grades.
The Value Score of D is the clear caution signal. GLW’s 14.1% decline has improved the entry point, while accelerating optical demand, expanding margins and a Zacks Rank #1 strengthen the recovery case. Yet the stock still carries a valuation that assumes meaningful future growth.
For investors comfortable paying a premium for AI infrastructure exposure, the pullback looks more attractive than the recent price action alone suggests. For value-focused investors, Corning still needs either additional earnings growth or further valuation compression to offer a wider margin of safety.
The market expects Global Payments (GPN - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis electronics payment processing company is expected to post quarterly earnings of $3.57 per share in its upcoming report, which represents a year-over-year change of +9.5%.
Revenues are expected to be $3.18 billion, up 31% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.02% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Global Payments?For Global Payments, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Global Payments will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Global Payments would post earnings of $3.45 per share when it actually produced earnings of $3.46, delivering a surprise of +0.29%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Global Payments appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsWestern Union (WU - Free Report) , another stock in the Zacks Financial Transaction Services industry, is expected to report earnings per share of $0.35 for the quarter ended September 2026. This estimate points to a year-over-year change of -25.5%. Revenues for the quarter are expected to be $1.02 billion, down 0.8% from the year-ago quarter.
The consensus EPS estimate for Western Union has been revised 2.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.14%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Western Union will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street expects a year-over-year increase in earnings on higher revenues when DraftKings (DKNG - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +30.8%.
Revenues are expected to be $1.39 billion, up 21.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.11% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for DraftKings?For DraftKings, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -13.21%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that DraftKings will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that DraftKings would post earnings of $0.22 per share when it actually produced earnings of $0.09, delivering a surprise of -59.09%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DraftKings doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Gaming industry, Super Group (SGHC - Free Report) Limited (SGHC - Free Report) , is soon expected to post earnings of $0.16 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -15.8%. This quarter's revenue is expected to be $614 million, up 10.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Super Group (SGHC - Free Report) has been revised 21.1% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Super Group (SGHC - Free Report) will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The market expects Cigna (CI - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis health insurer is expected to post quarterly earnings of $7.46 per share in its upcoming report, which represents a year-over-year change of -4.7%.
Revenues are expected to be $73.53 billion, up 5.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cigna?For Cigna, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.06%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Cigna will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cigna would post earnings of $7.58 per share when it actually produced earnings of $7.78, delivering a surprise of +2.64%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cigna doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
RWA tokenization represents ownership rights in real-world assets such as real estate, bonds or commodities as digital tokens on a blockchain. This can bring assets that traditionally live outside DeFi on-chain, but the token is only one part of the structure.
A token can move on-chain in seconds. A building, bond or bar of gold cannot. RWA tokenization connects those two worlds. It creates blockchain-based tokens representing claims on assets that exist outside the blockchain, making it possible to hold, transfer and, where supported, trade those claims on-chain.
But putting an asset on-chain does not automatically make it liquid. Nor does the blockchain remove the need for custody, legal rights or reliable links between a token and the asset backing it.
Understanding RWA tokenization therefore requires looking beyond the token itself. Here is how the process works, what kinds of assets are being tokenized, how DeFi liquidity fits in and where the risks remain.
What is RWA tokenization?RWA tokenization is the process of representing ownership rights or claims on a physical or financial real-world asset as a digital token on a blockchain.
The underlying asset could be real estate, a government or corporate bond, private credit, gold or another commodity. The token represents a defined claim associated with that off-chain asset.
That makes an RWA token fundamentally different from a native crypto asset such as ETH. ETH exists on its blockchain. Its ownership can be established directly from the blockchain's state.
An RWA token points beyond the blockchain. If a token represents gold, for example, the gold itself remains in the physical world. Someone has to hold it, verify it and maintain the relationship between the token and the metal it represents. The smart contract can record token ownership and enforce on-chain rules, but it cannot independently prove that the gold remains in a vault.
The same principle applies to financial assets. A tokenized bond may represent rights connected to an off-chain bond, but those rights depend on the legal and operational structure connecting the token to the underlying instrument.
RWA tokenization therefore combines two layers: blockchain infrastructure and an off-chain framework that gives the token its real-world claim.
The concept overlaps with traditional securitization, where financial claims can be packaged into standardized instruments. Blockchain changes how those claims can be represented, transferred and settled, potentially allowing them to interact with DeFi infrastructure.
How RWA tokenization actually worksThe exact process varies by asset and jurisdiction, but the basic structure follows several stages.
First, an underlying asset is identified. It could be a property, bond, commodity or another asset whose ownership or economic rights can be represented digitally.
Next comes the legal and operational structure. The issuer needs to define exactly what the token represents.
Owning a token might represent direct ownership of an asset, a fractional interest, a claim against an entity holding the asset or another contractual right. Those structures are not interchangeable. The rights attached to the token depend on how the arrangement was created.
The token is then issued on a blockchain. Smart contracts define its on-chain behavior, including how it can be transferred and, where applicable, how other functions operate. Different technical standards exist for RWA tokens, but the important point for a holder is what rights the token represents rather than the particular token standard used.
Once issued, the token can potentially be held, transferred or traded on-chain, subject to the rules attached to it and the availability of supporting infrastructure and liquidity.
Smart contracts can also automate parts of the asset's lifecycle. For example, a structure representing a bond could use smart contracts to distribute coupon payments to eligible token holders. A real-estate structure could similarly automate distributions associated with rental income.
But the blockchain does not replace the off-chain asset. A useful way to think about an RWA token is as an on-chain representation connected to an off-chain source of value. The strength of that connection is therefore as important as the smart contract itself.
What kinds of assets are being tokenized?RWA tokenization can be applied to very different asset classes. The practical structure depends on what is being represented and how ownership works before it reaches the blockchain.
Real estateProperty illustrates one of the clearest potential uses for RWA tokenization. Real estate transactions traditionally involve large minimum amounts and assets that cannot easily be divided or transferred. A tokenized structure can split economic rights connected to a property into smaller units.
That does not mean the building itself has somehow moved onto a blockchain. The tokens represent rights defined by the legal structure holding or controlling the property.
Fractionalization can reduce the size of an individual position and make ownership interests easier to transfer. Whether an active secondary market develops is a separate question.
Bonds and private creditDebt instruments are another major category. A token can represent a claim associated with a bond or private-credit arrangement. Smart contracts can help automate processes such as distributing interest or coupon payments to token holders.
Blockchain-based settlement can also shorten some operational processes involved in transferring these claims.
But tokenization does not remove credit risk. If the underlying borrower fails to meet its obligations, putting the claim on-chain does not change that fundamental economic risk.
CommoditiesPhysical commodities create an obvious bridge between on-chain ownership and off-chain custody.
A gold-backed token, for example, can represent a claim on physical gold held by a custodian. The token can move on-chain without the underlying metal moving every time ownership changes.
The critical question is therefore what backs the token and how that backing is verified. The blockchain can show who owns the token, but the token's relationship with the physical commodity depends on the off-chain arrangement.
Intellectual propertyIntellectual property is a smaller and emerging category. Tokens can potentially represent defined rights linked to royalties, licensing or other economic claims. As with other RWAs, the token's value depends on the enforceability and structure of the rights it represents.
How DeFi liquidity fits into RWA tokenizationOne of the most important promises of RWA tokenization is greater liquidity. But tokenization and liquidity are not the same thing.
Turning an asset into smaller blockchain-based units can make it easier to transfer. It can also lower the practical size of an individual position.
Neither guarantees that somebody will be willing to trade the token when you want to.
Real liquidity requires market participants and sufficient depth. If an RWA token has little trading activity, a large transaction can still move its price significantly or be difficult to complete.
That makes RWA liquidity a familiar DeFi problem. Liquidity for crypto assets is already fragmented across different pools, protocols and blockchain networks. RWA tokens can face the same issue as they become available in on-chain markets.
Suppose the same token has liquidity in several pools. One pool may offer a better starting price but have little depth. Another may have more liquidity but a slightly different price. Sending the entire swap through one source may produce a less efficient outcome than routing across several.
This is where aggregation can become relevant. A DEX aggregator evaluates available liquidity across multiple sources rather than requiring you to select a single pool manually. Where an RWA token has supported on-chain liquidity, the same routing principles that apply to other tokens can apply to it.
RWA tokens are also beginning to interact with other parts of DeFi. Depending on the token and protocol, they can potentially be used as collateral or incorporated into other on-chain financial structures.
That could make the boundary between traditional assets and DeFi increasingly less distinct. But each integration adds dependencies, and the off-chain backing of the token remains relevant even when the token itself is being used entirely on-chain.
The real risks of RWA tokenizationRWA tokenization can change how an asset is represented and transferred. It does not remove the risks attached to the underlying asset and can introduce additional ones.
Custody and backing riskAn RWA token is only as reliable as the structure connecting it to the underlying asset. If a token claims to represent gold, where is the gold held? Who is responsible for custody? How is the backing verified? What happens if the custodian fails?
Similar questions apply to securities, property and other assets. The blockchain may provide a clear record of token ownership while telling you little about whether the off-chain asset is being managed as promised.
Legal and regulatory riskRWAs sit at the intersection of blockchain systems and existing legal frameworks. Rules differ across jurisdictions and continue to evolve. The rights attached to an RWA token can also depend on how it was issued, who is eligible to hold or transfer it and how the underlying asset is legally structured.
The fact that a token can technically move between blockchain addresses does not necessarily mean every transfer is permitted under the rules governing that token.
Liquidity riskTokenization can make an asset transferable without making it liquid. Some RWA tokens may have limited trading activity or shallow liquidity. That can lead to larger price impact, wider spreads or difficulty completing a trade at the expected price.
Liquidity can also be fragmented between different networks and on-chain sources. Aggregation can help search across available liquidity, but it cannot create market depth that does not exist. A token with little underlying trading activity remains illiquid even if a routing system can access every available source.
Smart contract riskRWA tokens are also exposed to the risks that apply to on-chain applications generally. A vulnerability in a token contract or another smart contract interacting with it could cause unexpected behavior or losses. Audits and other security practices can reduce this risk, but they cannot guarantee that a smart contract is free of vulnerabilities.
RWA holders therefore face both layers of risk: the on-chain infrastructure and the off-chain asset structure.
Who is building in RWA tokenization?RWA tokenization involves several types of participants rather than a single class of company.
Asset issuers create the structure connecting an underlying asset to a blockchain-based token. Their role includes defining what the token represents and how the underlying rights operate.
Custodians hold or safeguard underlying assets where physical or conventional financial custody is required. Their role is particularly visible for assets such as precious metals.
On-chain marketplaces provide infrastructure through which eligible RWA tokens can be transferred or traded when secondary-market activity is supported.
Tokenization infrastructure providers supply technical systems used to issue and manage RWA tokens, including smart contracts and related compliance functionality.
Individual organizations can perform more than one of these roles. What matters for a token holder is understanding the complete chain connecting the on-chain token to the underlying asset rather than focusing only on the token contract.
FAQWhat is RWA tokenization?RWA tokenization is the process of representing ownership rights or claims on real-world assets such as real estate, bonds or commodities as blockchain-based tokens. The token exists on-chain, while the underlying asset and some of the rights connected to it remain off-chain.
What are the risks of RWAs?RWA tokens combine risks from both traditional assets and blockchain infrastructure. Key risks include custody and backing risk, regulatory uncertainty, limited liquidity and smart contract vulnerabilities. The underlying asset also retains its own economic risks, such as credit risk for debt or price risk for commodities.
What are some examples of RWA tokenization projects?RWA projects can tokenize categories including government and corporate bonds, private credit, real estate, commodities such as gold and certain intellectual-property rights. The exact structure differs depending on the underlying asset and the rights represented by the token.
How do I evaluate an RWA token or project?Start with what the token actually represents. Check the underlying asset, the legal claim attached to the token and who holds or administers the asset. Look at how backing is verified and what happens if an issuer or custodian fails.
Then examine the on-chain side: the token's smart contracts, security reviews, blockchain network and available liquidity.
Finally, distinguish technical transferability from actual liquidity. A token may be transferable on-chain while having little market depth, making larger transactions difficult or expensive.
RWA tokenization can bring assets that traditionally existed outside blockchain networks into DeFi. But a digital token does not make the physical, financial or legal infrastructure behind the asset disappear.
For RWA tokens to function effectively on-chain, the connection to their underlying assets needs to be robust and the tokens need real liquidity.
Where supported RWA tokens have on-chain liquidity, aggregation can help access liquidity spread across different sources from a single interface.
Access liquidity across tokenized assets on the 1inch app.
Disclaimer : This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.
The Pound Sterling (GBP) appreciates against the US Dollar (USD) on Thursday, even as US economic data was solid: GDP exceeded estimates, inflation rose as expected, and the job market is robust. At the time of writing, GBP/USD trades at 1.3340, up 0.19%. Read More...
Pound Sterling Price News and Forecast: GBP/USD ticks lower as the US Dollar regains groundThe British Pound (GBP) edges down to near 1.3312 against the US Dollar (USD) during the European trading session on Thursday. The GBP/USD pair ticks lower as the US Dollar (USD) regains ground, with financial markets remaining confident of Federal Reserve’s (Fed) interest rate hike in December after leaving them steady in the policy meeting on Wednesday. Read More...
British Pound ticks down against US Dollar ahead of key US economic releasesThe British Pound (GBP) edges down to near 1.3312 against the US Dollar (USD) during the European trading session on Thursday. The GBP/USD pair ticks lower as the US Dollar (USD) regains ground, with financial markets remaining confident of Federal Reserve’s (Fed) interest rate hike in December after leaving them steady in the policy meeting on Wednesday. Read More...
Two precious metals have just fallen below key psychological price barriers, and the timing couldn't be better.
Palladium has fallen below 1000, entering territory we identified as a key potential support area more than a week ago. Platinum, meanwhile, has fallen below 1500 after buyers failed to turn an earlier recovery attempt into a convincing reversal.
Two markets, two important support areas and two rather uncomfortable situations for the bulls.
But here's where things get interesting.
Breaking below support during a trading session isn't necessarily the same as confirming a lasting breakdown. Sometimes sellers manage to defend their advantage through the close, opening the door to another decline. Other times, buyers fight back and turn an apparent bearish victory into a failed breakdown.
So, have the bears just cleared the way toward their next downside objectives? Or will these key psychological levels trigger a stronger defensive response?
Today's price action gives us plenty to examine, and the closing prices could provide the next important clues.
Let's take a closer look.
Platinum (PL.F) - The recovery falls apart. Is 1446 next?
Yesterday, platinum buyers had a chance to build on their recovery from the key 1500 support level.
Instead, they ran into trouble.
The attempt to close Monday's bearish gap at 1555-1562 failed, and the subsequent retreat brought prices dangerously close to the July low and Wednesday's bullish opening gap. That already warned that the developing bullish reversal scenario was losing credibility.
And Thursday's sellers wasted little time taking advantage.
Their attack swept through Wednesday's bullish gap at 1537-1546, pushed platinum below the July low around 1539, and then carried prices beneath the psychological 1500 barrier.
But the bears didn't stop there.
The decline also breached the lower boundary of the red declining channel, taking platinum down to 1478.75. That's a significant deterioration in the technical picture.
The potential island-style reversal we discussed yesterday had never received convincing confirmation, and now another downside objective is coming into focus.
If sellers maintain their advantage and platinum finishes the session below both 1500 and the channel's lower boundary, the daily 127.2% Fibonacci extension around 1446.41 could become the next important destination.
But what if buyers fight back?
A recovery above 1500 and the channel boundary before the daily close would invalidate today's breakdown beneath that support combination and weaken the immediate bearish argument.
That would be encouraging, but buyers would still need to recover considerable technical ground before a convincing bullish reversal could develop.
For now, the message is clear: the bulls had a chance to stabilize, but they failed to protect it, and today's close will help determine whether the bears can turn that failure into another meaningful decline.
Daily Takeaways: Platinum has fallen below the July low of 1500 and the lower boundary of the red declining channel intraday. A daily close below the channel and 1500 would strengthen the bearish case, with 1446.41 as the next conditional target. Recovering both barriers before the close would invalidate the immediate breakdown and improve the chances of stabilization.
Palladium (PA.F) - We marked the 1000 zone. The bears have arrived
Sometimes the most interesting market developments begin with a level identified well before the price actually reaches it.
On October 22, in Premium Lab Note #241, we wrote:
“(…) Price has reached the lower boundary of the weekly red declining channel, while the weekly 78.6% retracement near 1010, psychological 1000 level and daily 161.8% extension at 996.80 create a deeper potential support cluster around 997-1010. (…)”
We returned to that same support combination in yesterday's Free Lab Note.
And today?
Palladium didn't just reach our projected support area. It fell below it.
Thursday's sellers pushed prices to 990.75, moving beneath the psychological 1000 barrier and the daily 161.8% Fibonacci extension near 996.80. That's an important continuation of the bearish scenario we've been tracking across several sessions.
But reaching a support zone, or even temporarily breaking beneath it, doesn't automatically tell us what happens next, which is why today's close deserves particular attention.
If buyers recover 1000 before the session ends, the intraday breakdown beneath that psychological barrier would be invalidated. Such a development could encourage a corrective rebound, potentially bringing the previously broken lower boundary of the red declining channel back into focus.
That wouldn't automatically reverse the broader bearish trend, but it would demonstrate that buyers are finally putting up a meaningful defense.
What if they fail?
A daily close below 1000 would confirm the breakdown beneath that barrier and strengthen the case for another decline. In that case, the next key potential destination would be the green declining support line around 970, based on the March and June lows. That's a considerably more uncomfortable prospect for buyers.
Of course, the daily indicators remain deeply oversold, with RSI around 21 and Stochastic near 10. A defensive reaction around current prices wouldn't be surprising, but we've already seen several rebound attempts fail before buyers could recover meaningful resistance.
For now, the bears have delivered another important stage of our earlier roadmap. The next question is whether palladium can defend 1000 before the closing bell or whether the market is preparing another move south.
Daily Takeaways: Palladium has reached and moved below the previously identified 997-1010 support cluster, with today's low at 990.75. A recovery above 1000 before the daily close would invalidate the intraday breakdown and favor a potential rebound toward the broken red channel boundary. A daily close below 1000 would strengthen the bearish continuation scenario and bring the green support line around 970 into focus.
What about the other four markets?Palladium and platinum selling pressure isn't the only key development today.
The U.S. dollar is struggling to overcome a familiar resistance level, leaving buyers with another difficult decision. Gold is testing whether a recently recovered technical boundary can hold up amid renewed selling pressure. Silver has established another local low and is approaching a downside objective we've been tracking in recent analyses. Copper has delivered an intriguing twist: after successfully overcoming several resistance barriers, buyers have run into trouble near an important Fibonacci level.
Could these setbacks turn into another wave of bearish continuation? Or will today's close give buyers a reason to challenge that view?
In today's complete Anna's Trading Lab Premium, we examine these four additional markets, connect their latest developments with our previous scenarios, and identify the critical levels that could shape the next move.
Final thought - The level matters. The reaction matters moreWatching a market finally reach a support area we've been discussing for days is particularly revealing. The arrival matters, but the real test begins when buyers and sellers decide what happens next.
Will buyers defend the level? Will sellers confirm the breakdown? And will the resulting price action give us enough evidence to reconsider our expectations?
Those questions turn a technical projection into a useful market roadmap.
Why?
Because reaching an important price level is only part of the story…. what happens there can tell us much more about where the market may be heading.
Stay curious, watch the confirmation, and let price action reveal the next chapter.
Follow the evidence, respect the confirmation, and stay curious about what comes next.
Although the yuan has struggled in the post-pandemic recovery, China appears to have found new resilience in its burgeoning AI prowess, helping to support ambitious infrastructure initiatives and a brighter future against a US dollar that’s been in consistent decline since the return of President Trump.
One of the biggest headwinds that the Chinese economy has focused on how to turn the corner on the challenges caused by the collapse of Evergrande and the domestic housing market.
When exploring the impact of the crisis across the USD/CNY trading pair, the year following the official declaration of Evergrande’s default by S&P Global on December 17, 2021, saw a strengthening process of 10.46% occur.
The strengthening trend lasted until around the time of Trump’s inauguration, with the returning president, who famously favors a weaker greenback, triggering a reversal that saw an 8.46% declines in USD/CNY at the beginning of Q3 2026.
6.40 on the horizon?Analysts have anticipated a continuation of ongoing trends, with Goldman Sachs forecasts suggesting that a USD/CNY level of 6.40 will emerge over the next 12 months, representing an approximate 4.6% yuan appreciation from current levels.
The reason for such a sustained downturn in USD/CNY levels stems from strengthening export conditions, citing real GDP growth of 4.5% year-over-year in 2026 despite headwinds from weak domestic demand.
Although China set its GDP growth target to a record low of 4.5% to 5%, a level that hasn’t been seen since 1991, at the beginning of the year, the world’s second-largest economy has broadly benefited from an upturn in export strength that’s been brought on by its position as a leader in the fledgling AI landscape.
Notably, the economy reached its target in the third quarter, posting 4.5% growth, which represented an increase over Q2 2026.
The reason for the rising optimism for the yuan has been China’s growing trade surplus, which is on track to overtake the record $1.2 trillion that was seen last year.
In forex, a higher trade surplus supports a stronger currency because it focuses on the amount of goods and services that a nation sells abroad compared to what it buys from other countries.
This means that policymakers at the People’s Bank of China (PBoC) will have more room to tolerate and manage a stronger yuan rather than having to rely on a weaker domestic currency to encourage more trade.
Sales of high-tech goods rallied 14.3%, supporting an explosion in export strength that stems from China’s new AI initiatives. Another major support was the production of both batteries and industrial robots, which grew by more than 29%, according to official figures.
Critically for the future prospects of the yuan, the news this summer that China is planning a $295.43 billion AI buildout over the next five years has helped to brighten the nation’s long-term outlook for exports in the high-tech sector.
Trade outlook brings uncertaintyOne reason that predictions for a USD/CNY rate of 6.40 could be a little ambitious is the ever-changing trade outlook for China.
“Relations between China and the US remain as frosty as ever, but the Asian powerhouse may also be facing headwinds from Europe, with the EU questioning the level of competitiveness of Chinese exports and their impact on European businesses,” said Just2Trade CMO Vsevolod Smirnov. “Recently, the EU moved to limit Chinese hybrid vehicle imports to 350,000 a year as part of a quota that would see its market share halve to around 3%.”
“It’s fair to say that CNY is undervalued, but its long-term trajectory depends on a lot of variables in terms of trade working in China’s favor. This means that a push lower to support at 6.550 could be a major milestone in the months ahead. But after that, the trade outlook will need to provide a tailwind.”
The yuan could also encounter interest rate pressures that adversely affect the currency’s growth. With the Federal Reserve likely to hike interest rates in the US once more before the end of 2026, we could see the dollar build in resilience.
This, coupled with the prospect of the PBOC introducing monetary easing cycles to combat its own slow consumption rates, means that a shift in yields could drive investments back across the Pacific.
What’s next for USD/CNY?The Federal Reserve’s next meeting in December 2026 will be a key moment for the outlook between the dollar and yuan, with expectations high that one further interest rate hike is on the way.
However, adopting a more long-term view, any recovery in USD/CNY is likely to be short-lived as China’s economic strategy continues to look as though it is recapturing its groove. With the growing trade surplus as a tailwind for the yuan, investors should look to interest rate volatility as an opportunity to sell the pair before a resumption of the long-term downward trend continues.
D.R. Horton, Inc. (DHI) Q4 2026 Earnings Call October 29, 2026 8:30 AM EDT
Company Participants
Jessica Hansen - Senior VP of Communications & People and Head of Investor Relations
Paul Romanowski - President, CEO & Director
Michael Murray - Executive VP & COO
Bill Wheat - Executive VP & CFO
Conference Call Participants
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Alan Ratner - Zelman & Associates LLC
John Lovallo - UBS Investment Bank, Research Division
Richard Reid - Wells Fargo Securities, LLC, Research Division
Matthew Bouley - Barclays Bank PLC, Research Division
Eric Bosshard - Cleveland Research Company LLC
Anthony Pettinari - Citigroup Inc., Research Division
Ryan Gilbert - BTIG, LLC, Research Division
Michael Rehaut - Melius Research LLC
Rafe Jadrosich - BofA Securities, Research Division
Adam Kramer - Morgan Stanley, Research Division
Michael Dahl - RBC Capital Markets, Research Division
Paul Przybylski - Wolfe Research, LLC
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Jay McCanless - Citizens JMP Securities, LLC, Research Division
Alex Barrón - Housing Research Center, LLC
Buck Horne - Raymond James & Associates, Inc., Research Division
Presentation
Operator
Good morning, and welcome to the Fourth Quarter 2026 Earnings Conference Call for D.R. Horton, America's Builder. [Operator Instructions]
I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
Jessica Hansen
Senior VP of Communications & People and Head of Investor Relations
Thank you, and good morning. Welcome to our call to discuss our fourth quarter and fiscal 2026 financial results. Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date of this conference call and D.R. Horton does not undertake any obligation to
Carvana just broke a sales record it has never hit before, yet one number in the earnings report landed well below what Wall Street expected. Whether that miss matters or gets buried under the volume surge is splitting investors right…
Carvana (NYSE:CVNA | CVNA Price Prediction) posted a record quarter for units and revenue, and those records are outweighing an earnings-per-share miss. Investors are treating the report as proof that the company’s growth engine is intact after a rough year for the stock. Carvana stock is trading at $68 this morning, up 15%.
Checking in on the peers, CarMax (NYSE:KMX) stock is at $55, up 1%. AutoNation (NYSE:AN) stock is at $168, up 2%.
Carvana’s Record Quarter Comes With One Weak Spot Results for Q3 2026 arrived after the close on October 28, and volume was the headline at Carvana. “This is our first quarter with over 200,000 sales. Our run rate is now 870,000, double what it was just two years ago,” Carvana founder and CEO Ernie Garcia stated on the earnings call.
Retail sales reached a record 217,385 vehicles at Carvana, up 39% year over year. The company said in its filing that growth outpaced a broader auto market where sales were mostly flat, as it won customers from rivals and high new-car prices pushed budget-conscious buyers toward used vehicles. Revenue at Carvana rose 42% to $8.04 billion.
Wall Street analysts had called for $7.67 billion in revenue from Carvana, so the top line cleared that bar. Carvana’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached a record $800 million, a 10% margin, exceeding the $791.3 million consensus from Wall Street analysts.
Earnings per share were the weak spot in Carvana’s report. At $0.39, Carvana’s per-share profit missed the $0.48 consensus from Wall Street analysts, and the quarter carried a one-time charge tied to the early redemption of senior secured notes. Looking ahead, Carvana expects 2026 adjusted EBITDA near the upper end of its $2.7 billion to $3 billion outlook.
How Carvana’s Rough Year Stacks Up Against CarMax and AutoNation Carvana stock is still down 19% year to date (YTD) despite the rebound. Part of the pressure shows up in Carvana’s margins, which narrowed from a year earlier as the company passed value back to customers through loan rates below benchmark levels and absorbed higher fuel and interest costs.
CarMax is the closest used-car comparable, and its path this year has run opposite to Carvana’s. Up 42% YTD, CarMax stock is only edging higher on Carvana’s report. On September 29, CarMax reported that comparable used unit sales grew 13%, and management credited sharper pricing along with tighter Federal Trade Commission (FTC) enforcement on advertised pricing, which favors the company’s no-haggle model. Physical superstores also set CarMax apart, since the company blends in-store and online buying and runs its own lender, while Carvana sells online and handles reconditioning, financing and delivery itself.
AutoNation stock is down 19% YTD, matching Carvana’s decline, while Lithia Motors (NYSE:LAD) has held up better, down 11% YTD and trading at $294, up 2%, as Carvana’s report lifts the group.
Both dealer groups sell new cars alongside used ones, so high new-car prices cut two ways for them. Elevated sticker prices can lift revenue per vehicle at AutoNation while reducing the pool of buyers, and the company’s management noted on July 31 that new-vehicle profit per unit fell on higher vehicle costs. Carvana, by contrast, sells only used vehicles and can gain when pricey new cars push shoppers its way. The modest gains at AutoNation and Lithia Motors are moving alongside Carvana’s report.
Carvana’s Next Test Is Turning Volume Into Profit Growth Ernie Garcia reaffirmed Carvana’s long-term targets of selling 3 million vehicles a year and reaching a 13.5% adjusted EBITDA margin, and both remain company goals. Carvana now faces the question of whether record volume turns into earnings growth that meets Wall Street’s expectations. That test gets harder to track because the company plans to stop releasing quarterly and annual outlooks starting with its Q4 2026 call.
The bulls can point to Carvana’s market-share gains in a flat industry and a stronger balance sheet after a recent debt refinancing. Rising benchmark rates and elevated fuel costs are the bears’ main concerns for Carvana, along with the risk that used-car demand softens if new-car prices ease and shoppers drift back to new models. On the peer side, watch for CarMax’s strategic update on November 3, which could reset expectations for the closest used-car rival. Investors may prefer a cautious approach until the question of Carvana’s profit follow-through resolves.
Contact [email protected] for any questions or corrections.
The market expects Tapestry (TPR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of high-end shoes and handbags is expected to post quarterly earnings of $1.56 per share in its upcoming report, which represents a year-over-year change of +13%.
Revenues are expected to be $1.84 billion, up 8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.11% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Tapestry?For Tapestry, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.85%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Tapestry will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Tapestry would post earnings of $1.26 per share when it actually produced earnings of $1.32, delivering a surprise of +4.76%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Tapestry appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Rivian Automotive Inc. (NASDAQ:RIVN) has enjoyed a partnership with Amazon.com Inc. (NASDAQ:AMZN) to supply delivery vans. Since that deal ended exclusivity, Rivian has seen some interest from other customers, but failed to land a big whale. That could be changing with reports that Walmart Inc. (NASDAQ:WMT) could be circling the EV company.
Rivian Walmart Van Image Sparks InterestImages shared on social media of a Rivian delivery van outfitted with Walmart+ logos have sparked speculation that the retailer could be working with the EV company. The good news for investors is they may get their answer on Thursday, with Rivian reporting quarterly financial results after market close.
An image of a Rivian delivery van with Walmart logos, similar to the vans Amazon uses, sitting on a car hauler has caught attention in the EV world, as reported by Electrek.
Rivian could share the news if the partnership is official, or an analyst could ask about the image or any new partners for the delivery van.
Rivian has a deal in place with Amazon.com for 100,000 delivery vans, with around 50,000 already delivered.
In November 2023, that deal lost exclusivity.
Rivian has managed to land some smaller deals with AT&T and HelloFresh for delivery vans, but nothing in the realm of the Amazon deal or a potential Walmart deal.
The questions are whether the image is real, in a world where AI images go viral, and if it is, whether this is a test vehicle or something larger for the two companies.
As shared by Electrek, Walmart has not had success with previous electric van partners. The company signed a 4,500-van deal with Canoo in 2022. That company later declared bankruptcy in 2025. Walmart also signed a deal with General Motors (NYSE:GM) for 5,000 BrightDrop vans. GM later discontinued this vehicle.
It is unclear exactly how many electric delivery vans Walmart ended up with or how many it would need.
Read Next
Rivian’s Earnings on DeckAccording to data from Cox Automotive, van deliveries are heating up for Rivian. In the third quarter, Rivian sold 8,469 delivery vans, up 220.9% year-over-year. This was more than the R1S, R1T and new R2 combined for the quarter, according to InsideEVs.
Year-to-date through Sept. 30, Rivian has sold 15,685 electric delivery vans, up 130.4% year-over-year. That ranks first among electric delivery vans by a wide margin, with the discontinued BrightDrop second at 1,344 units sold in 2026.
This sales ramp-up raises the question of whether Amazon is getting all the vans or if other customers, like Walmart, are in play.
Hopefully, investors get an answer on Thursday.
Analysts expect Rivian to report record quarterly revenue of $1.98 billion, up from $1.56 billion in last year’s third quarter, according to data from Benzinga Pro. The current record is $1.66 billion in the second quarter of this year.
Rivian has beaten analyst estimates for earnings per share in six of the last 10 quarters and for revenue in nine of the last 10 quarters, including seven straight quarters.
Rivian Stock Price ActionRivian shares are trading flat $11.68 on Thursday versus a 52-week trading range of $11.42 to $22.69. Rivian stock is down 40.7% year-to-date.
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Photo: Michael Vi / Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways Robinhood's Q3 revenues rose 12% to $1.42B, with 14 business lines generating $100M in annualized revenues.Gold subscribers surged 34% to 5.2M, while prediction-market revenues jumped over sixfold to $173M in Q3.HOOD's platform assets grew 19% to $396B, but crypto revenue weakness and premium valuation remain concerns.
Robinhood Markets, Inc. (HOOD - Free Report) continues to expand beyond its traditional brokerage business, strengthening its presence across digital banking, wealth management, prediction markets and subscription-based services. The company's diversification initiatives are gaining traction, creating additional revenue opportunities and reducing its reliance on conventional trading activities.
In the third quarter of 2026, Robinhood reported record revenues of $1.42 billion, up 12% year over year. The company now has 14 business lines generating at least $100 million in annualized revenues, highlighting the growing breadth of its financial services ecosystem.
Business Lines Touching $100M+ in Annualized Revenues
Image Source: Robinhood Markets, Inc.
Despite these encouraging developments, Robinhood faces challenges from declining cryptocurrency revenues, interest-rate sensitivity and elevated valuation. Still, its expanding product portfolio, growing customer assets and encouraging earnings outlook make HOOD stock worth considering for long-term investors.
Robinhood's Diversification Initiatives Support GrowthRobinhood's expansion into subscription-based services and digital banking is strengthening customer engagement and creating recurring revenue opportunities. Robinhood Gold subscribers increased 34% year over year to a record 5.2 million in the third quarter of 2026. Gold Card reached 1.3 million customers, generating more than $19 billion in annualized payment volume.
Robinhood Banking also gained traction, attracting nearly $5 billion in deposits from more than 350,000 funded customers. These developments are expected to help Robinhood deepen customer relationships, boost cross-selling opportunities and diversify its revenue base.
Prediction markets have emerged as another significant growth driver. In the third quarter, event-contract revenues surged more than sixfold year over year to $173 million, while event contracts traded increased more than sevenfold to 16.4 billion. Further, Rothera surpassed $100 million in annualized revenues during its first full quarter of operations. The rapid adoption of these offerings underscores Robinhood's ability to capitalize on emerging investment trends and expand its addressable market.
HOOD is also strengthening its wealth management and retirement offerings to attract long-term customer assets. Retirement assets under custody increased 51% year over year to $36.6 billion. Robinhood Strategies expanded to 350,000 funded customers, managing more than $2 billion in assets, while Trust Accounts surpassed $300 million in assets. These initiatives are likely to support customer retention, asset gathering and revenue diversification beyond transaction-driven activities.
Additionally, Robinhood is expanding its international footprint and digital asset capabilities. The company launched cryptocurrency trading in the United Kingdom and received regulatory authorization in Dubai, where it plans to introduce products in 2027. Meanwhile, Robinhood Chain generated more than $80 billion in decentralized-exchange volume during its first mainnet quarter. These efforts should provide additional avenues for long-term growth.
Growing Customer Assets Strengthen HOOD's ProspectsRobinhood's expanding product offerings are supporting robust customer asset growth and engagement. Total platform assets increased 19% year over year to $396 billion in the third quarter, aided by quarterly net deposits of $15.7 billion. Investment accounts increased 9% to 30.4 million, while average revenue per user rose 5% to $200.
Total Platform Assets & Net Deposits
Image Source: Robinhood Markets, Inc.
Margin balances climbed 59% year over year to a record $22.1 billion in the third quarter of 2026. Equity notional trading volumes increased 53%, while options contracts traded advanced 48%. Growing customer assets and strong trading engagement position Robinhood to generate additional transaction-based, interest and subscription revenues, supporting its long-term growth prospects.
Challenges Facing RobinhoodDespite these positives, Robinhood remains exposed to fluctuations in cryptocurrency trading and interest rates. In the third quarter, cryptocurrency transaction revenues plunged 55% year over year to $120 million, while net interest revenues declined 9% to $415 million. These trends highlight the company's continued sensitivity to market conditions.
Moreover, net income declined 14% year over year to $476 million, while earnings per share fell 16% to 51 cents despite record revenues. Investments in technology, product development and international expansion could pressure expenses. Additionally, regulatory uncertainties surrounding prediction markets and cryptocurrencies, alongside intense competition, remain concerns.
HOOD's Price Performance and ValuationOver the past year, Robinhood shares have declined 33.8% against the industry’s growth of 5.1%. The stock has underperformed Interactive Brokers Group (IBKR - Free Report) , which gained 21.9%, and Charles Schwab (SCHW - Free Report) , which lost 6%. The significant weakness in HOOD shares may present an attractive entry opportunity for investors seeking exposure to its expanding financial services ecosystem.
One-Year Price Performance
Image Source: Zacks Investment Research
Despite subdued price performance, Robinhood shares currently trade at a premium to the industry. The stock's trailing 12-month price-to-tangible book (P/TB) is 9.48X compared with the industry average of 3.01X.
P/TB
Image Source: Zacks Investment Research
In comparison, Schwab and Interactive Brokers trade at P/TB multiples of 6.31X and 1.63X, respectively. Thus, HOOD stock is expensive compared with Schwab and Interactive Brokers.
Although its premium valuation warrants caution, Robinhood's rapidly expanding product portfolio, strong customer engagement and diversified growth opportunities could support the stock's valuation over the long term. However, the premium also leaves limited room for execution missteps.
Robinhood’s Earnings Estimates Reflect OptimismAnalysts remain optimistic about Robinhood's earnings prospects. The Zacks Consensus Estimate for 2026 earnings indicates year-over-year growth of 7.3%, with earnings expected to jump another 40.5% in 2027.
Earnings Estimates
Image Source: Zacks Investment Research
Encouragingly, earnings estimates for 2026 and 2027 have been revised upward over the past 30 days to $2.20 and $3.09 per share, respectively. The positive estimate revisions reflect improving expectations for Robinhood's profitability, supported by its growing customer base, new revenue streams and expanding product offerings.
Is HOOD Stock a Smart Bet Now?Robinhood's diversification strategy is gaining momentum, supported by strong growth in Gold subscriptions, prediction markets, banking services and wealth management offerings. Its expanding customer assets, robust net deposits and increasing engagement provide a solid foundation for long-term revenue growth. Furthermore, positive earnings estimate revisions reinforce confidence in the company's growth prospects.
However, weakness in cryptocurrency revenues, declining net interest income, regulatory uncertainties and premium valuation remain near-term concerns. Despite these headwinds, Robinhood's strengthening financial services ecosystem, multiple growth catalysts and encouraging earnings outlook outweigh the near-term risks.
Moreover, the stock's significant correction over the past year offers an opportunity for investors to gain exposure to its long-term growth potential. Hence, HOOD stock appears worth buying now for investors with a long-term investment horizon and an appetite for volatility.
At present, Robinhood sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Chipotle's Q3 adjusted EPS of $0.27 missed the $0.29 Zacks estimate, while revenues met expectations.CMG expects Q4 comparable sales growth of about 2%, but restaurant-level margins slightly below 22%.Chipotle targets 2,000 equipment upgrades by year-end and plans expanded menu offerings and catering in 2027.
Chipotle Mexican Grill, Inc. (CMG - Free Report) emphasized improving restaurant traffic, expanding operational capabilities and sustaining growth investments during its third-quarter 2026 earnings call. Management expressed confidence in its Recipe for Growth strategy despite consumer headwinds and margin pressures.
Adjusted earnings of $0.27 per share missed the Zacks Consensus Estimate of $0.29. Revenues of $3.29 billion matched the consensus estimate. Executives highlighted softer October demand, improving underlying transactions and plans to accelerate growth initiatives in 2027.
CMG Outlines Fourth-Quarter Sales ExpectationsChief executive officer Scott Boatwright said comparable sales increased 3.8% in September with minimal promotional activity. Although broader industry weakness affected early October demand, transactions subsequently returned to positive territory.
Chief financial officer Adam Rymer projected approximately 2% comparable restaurant sales growth in the fourth quarter, with a potential exit rate of 3% to 4%. Management expects the upcoming Smoked Brisket launch and marketing campaigns to support demand.
Chipotle maintained its full-year 2026 outlook for low-single-digit comparable sales growth. Third-quarter comparable sales increased 2.1%, supported by 0.8% transaction growth and a 1.3% increase in average check.
Chipotle Faces Margin Pressure Despite Traffic GainsRymer expects fourth-quarter restaurant-level operating margins slightly below 22%, approximately 150 basis points lower year over year. Higher promotional spending, sales volumes and the absence of a prior-year gift card benefit contribute to the anticipated decline.
During an exchange with a Baird analyst, Rymer explained that approximately 4% nominal comparable sales growth would be necessary to stabilize margins under a 3% inflation assumption.
For 2027, management outlined a mid-24% restaurant margin baseline, assuming pricing offsets inflation and transaction growth reaches at least 1%. Incremental traffic beyond that threshold could generate approximately 40% margin flow-through.
CMG Accelerates Restaurant Technology DeploymentBoatwright highlighted progress with Chipotle's high-efficiency equipment package, currently installed in more than 1,700 restaurants. Equipped locations are generating comparable sales improvements of several hundred basis points alongside stronger customer satisfaction and throughput.
Management expects approximately 2,000 installations by year-end, with the broader rollout nearing completion by the end of 2027. Rymer noted that measurable sales benefits generally emerge after several months of operation.
Technology investments extend beyond kitchen equipment. An AI-powered food preparation forecasting tool has reached more than 500 restaurants, while Chipotle Kitchen, its proprietary digital makeline interface, is scheduled for broader deployment throughout 2027.
Chipotle Expands Menu Innovation and Guest EngagementBoatwright identified menu innovation as an important transaction driver. The reformulated Pollo Asado offering exceeded expectations, achieving an attachment rate in the low-20% range.
Chipotle also plans approximately four protein-focused limited-time offerings in 2027, complemented by additional sides, dips and beverages. Management emphasized maintaining operational simplicity while expanding menu variety.
The revamped Rewards program reached more than 24 million active members during the quarter. Loyalty-related sales exceeded 33% of total sales, while digital sales represented 38.8% of food and beverage revenues.
CMG Targets New Restaurants and Additional OccasionsBoatwright reaffirmed plans for 350 to 370 restaurant openings in 2026, including international partner-operated locations. For 2027, management anticipates 340 to 360 company-owned openings in the United States and Canada.
International expansion remains another priority, with 15 to 25 restaurants anticipated outside those markets in 2027. During analyst questioning, management clarified that these overseas openings would be partner-operated.
Chipotle also intends to begin expanding catering nationally in the first quarter of 2027. Boatwright identified opportunities to grow group occasions, which currently contribute approximately 3% of sales.
Chipotle Maintains Focus on Execution and ReturnsManagement's overall message remained focused on improving restaurant execution while scaling initiatives already showing measurable benefits. Boatwright emphasized operational consistency, hospitality and throughput as foundational priorities.
Rymer reiterated the importance of disciplined marketing spending and pricing decisions. Management expects continued investment in demand-generating initiatives while balancing inflation, restaurant economics and long-term profitability.
What CMG's Zacks Rank and Style Scores IndicateChipotle currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term outlook. Its Growth Score of B reflects comparatively favorable growth characteristics, while its Value and Momentum Scores of D indicate weaker positioning in those investment styles.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of C reflects a mixed combination of value, growth and momentum characteristics. These signals fall outside the preferred combination of a Zacks Rank #1 or #2 (Buy) and an A or B Style Score. Importantly, Chipotle's Zacks Rank can change as analysts revise earnings estimates following its third-quarter results.
Key Takeaways Low P/S stocks with solid fundamentals and financial strength may offer attractive upside potential.Low P/S ratios help uncover undervalued stocks when earnings are volatile or profit margins are thin.Low P/E, P/B and debt-to-equity ratios help identify financially sound stocks with attractive value potential.
Investing in stocks based on valuation metrics is a proven strategy for identifying companies with strong upside potential. Although the price-to-earnings (P/E) ratio is widely used to assess value, it becomes less meaningful when a company is unprofitable, operating with thin margins or experiencing volatile earnings.
In such situations, the price-to-sales (P/S) ratio can offer a more useful perspective. By comparing a company’s market value with its revenues, the metric helps investors evaluate how much they are paying for each dollar of sales.
Stocks with low P/S ratios may present attractive opportunities, particularly when supported by solid fundamentals, improving margins and favorable business momentum. However, a low multiple should not be viewed in isolation, as it may also reflect structural weaknesses or limited growth prospects. Used alongside measures of profitability, financial strength and operating performance, the price-to-sales ratio can help uncover undervalued stocks with meaningful upside potential.
G-III Apparel Group, Ltd. (GIII - Free Report) , HF Sinclair Corporation (DINO - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) , Genworth Financial, Inc. (GNW - Free Report) and PBF Energy Inc. (PBF - Free Report) are some companies with low price-to-sales ratios and the potential to offer higher returns.
What Is the Price-to-Sales Ratio?While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales ratio can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenue generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
Screening ParametersPrice-to-Sales less than the Median Price-to-Sales for its Industry: The lower the price-to-sales ratio, the better.
Price-to-Earnings using F(1) estimate less than the Median Price-to-Earnings for its Industry: The lower, the better.
Price-to-Book (Common Equity) less than the Median Price-to-Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt-to-Equity (Most Recent) less than the Median Debt-to-Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are five of the 23 stocks that qualified the screening:
Based in New York, G-III Apparel designs, sources, distributes and markets a broad range of apparel and accessories under owned, licensed and private-label brands. The company is strengthening its portfolio through momentum in owned and go-forward licensed brands, higher-margin mix, direct-to-consumer expansion and licensing opportunities. Donna Karan is emerging as a strong growth platform, supported by healthy demand, full-price selling, digital momentum and product innovation, while DKNY, Karl Lagerfeld and Vilebrequin are contributing to growth.
The Marc Jacobs acquisition adds an owned-brand platform with opportunities across categories, channels and geographies, alongside a strong direct-to-consumer presence. Robust liquidity and disciplined inventory management provide flexibility to invest in brands and return capital. GIII currently has a Zacks Rank #2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
HF Sinclair is an independent energy company producing and marketing gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. The company’s refining system remains the primary earnings driver and operates seven complex refineries across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest. HF Sinclair continues to invest in projects designed to improve feedstock access, product yields and logistics flexibility rather than relying solely on favorable refining cracks.
The company’s investments in the El Dorado vacuum furnace project, its Go-West initiative and its marketing business should help HF Sinclair process crude more efficiently, move fuel to where it is needed and sell products in markets offering better opportunities. Additionally, HF Sinclair’s renewable diesel platform has become a more constructive contributor as credit values, tax benefits and operating volumes support profitability. DINO currently sports a Zacks Rank #1 and has a Value Score of B.
Houston, TX-based Par Pacific offers a compelling investment case, supported by its integrated downstream platform spanning refining, logistics and retail operations. The company combines strong financial flexibility, with $937.7 million in liquidity, an active share repurchase program and lower financing costs, positioning it to create shareholder value through market cycles. Operational execution remains a key strength, highlighted by record Hawaii and Montana throughput, restored Washington operations and completed Rockies maintenance.
Hawaii Renewables provides an additional long-term growth catalyst as renewable diesel production ramps through the second half of 2026, while excess RIN monetization and affiliate earnings further support durable cash flow growth. PARR currently sports a Zacks Rank #1 and has a Value Score of A.
Genworth Financial provides mortgage and long-term care insurance products and related services in the United States. The company is well-positioned for long-term growth, supported by strong operating performance in its mortgage insurance business, Enact and continued progress on its strategic initiatives. Enact's solid capital position, favorable insurance persistency and growing new insurance business support earnings stability and capital returns.
Meanwhile, the expansion of its CareScout platform across home care and senior living communities creates opportunities to capitalize on growing demand for aging-related services. The planned launch of Care Assurance Worksite further strengthens its growth prospects. Additionally, continued progress in long-term care insurance rate actions supports the sustainability of its legacy business. Despite rising claims pressures, disciplined capital management and ongoing share repurchases underpin shareholder value. GNW has a Value Score of A and a Zacks Rank of 2 at present.
Parsippany, NJ-based PBF Energy benefits from a geographically diversified refining network that provides flexibility in sourcing crude, optimizing operations and supplying multiple regional markets. Its complex refining system enables the processing of a broad range of crude types while producing higher-value refined products, supporting profitability as market conditions evolve. The company also maintains a relatively conservative balance sheet with solid liquidity, providing financial flexibility and resilience through refining cycles while supporting its focus on reducing debt when conditions allow.
In addition, PBF continues to advance its Refining Business Improvement program, which is aimed at lowering costs and improving operational efficiency. These initiatives are expected to enhance refinery performance, reduce operating and capital expenditure, and strengthen long-term earnings potential, positioning the company to benefit from improved reliability and disciplined execution. PBF currently flaunts a Zacks Rank #1 and has a Value Score of A.
IntercontinentalExchange (ICE - Free Report) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $1.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.54%. A quarter ago, it was expected that this owner of the New York Stock Exchange and other stock markets would post earnings of $1.84 per share when it actually produced earnings of $1.9, delivering a surprise of +3.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
ICE, which belongs to the Zacks Securities and Exchanges industry, posted revenues of $2.77 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.33%. This compares to year-ago revenues of $2.41 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ICE shares have lost about 3.7% since the beginning of the year versus the S&P 500's gain of 13.1%.
What's Next for ICE?While ICE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ICE was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.95 on $2.73 billion in revenues for the coming quarter and $8.20 on $11.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Securities and Exchanges is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, CBOE Global (CBOE - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on October 30.
This holding company for the Chicago Board Options Exchange is expected to post quarterly earnings of $3.41 per share in its upcoming report, which represents a year-over-year change of +27.7%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level.
CBOE Global's revenues are expected to be $702.54 million, up 16% from the year-ago quarter.
Podle jedné teorie by centrální banky měly mít nadále znatelný zájem o zlato. A jejich poptávka by tak měla dláždit cestu k opětovnému růstu ceny této komodity. Podle jiné teorie, na kterou jsem v poslední době narazil, bude touto dlažbou přehnané zvedání sazeb, které pošle ekonomiku k recesi. Podívejme se dnes na tyto příběhy.
Následující graf ukazuje nákupy zlata ze strany centrálních bank. Velké věci se začaly dít po ruské invazi na Ukrajinu. Respektive poté, co v reakci na tuto agresi došlo ke zmrazení ruských rezerv. V centrálně bankovní sféře došlo pak k přehodnocení atraktivity (doma drženého) zlata a výsledek vidíme v grafu. Je to příběh celkem známý a jak v komentáři ke grafu píše Goldman Sachs, poptávka ze strany centrálních bank by měla být i nadále strukturálním tahounem (vyšších) cen zlata.
Mně se v souvislosti s obrázkem vybavuje určitá dikuse, které probíhala ve vztahu k nákupu dluhopisů cenrálními bankami. Tyto nákupy, tedy tzv. kvantitativní uvolňování QE, měly za cíl snížit výnosy dlouhodobějších dluhopisů. Tedy zvýšit jejich ceny. A tématem bylo konkrétně to, co vlastně rozhoduje: Je to celkový objem centrální bankou nakoupených dluhopisů? Nebo to, zda centrální banka zrovna nakupuje, nebo ne? Jinak řečeno, ovlivňuje trhy a ceny na nich doposud nakoupená zásoba, nebo aktuální tok? Jedna studie to rozsekla zajímavým způsobem: Tvrdila, že ani jedno. Rozhodující podle ní byla změna toku. Tedy to, zda cenrální banka v danou dobu zvyšuje, či snižuje nákupy.
Asi je zřejmé, proč tu diskusi připomínám v souvislosti s výše uvedeným obrázkem – zásoba zlata u cenbtrálních bank vzrostla, tok (další nákupy) tu jsou také. Ale druhá derivace – tempo nákupů, má klesající tendenci. Mohli bychom říci, že až budoucnost ukáže, co nakonec rozhodlo. Ale neukáže to ani ona. Protože izolovat jeden vliv ovlivňující cenu zlata od ostatních je dost těžké. A tím se dostávám k faktoru často považovaného za rozhodující – k reálným sazbám. Narazil jsem totiž na úvahu, se kterou nedávno přišel Bloomberg. Pokud jsem jí správně pochopil, tak podle ní ropa přestane být pro zlato brzdou ve chvíli, kdy centrální banky vyššími sazbami utlumí růst. Natolik, že začnou panovat obavy z recese. Pak se výhled otočí směrem k sazbám nižším a to zlatu pomůže k dalšímu růstu.
Bloomberg k této úvaze přidává graf s vývojem z let 2008 – 2012, kdy reálné výnosy desetiletých vládních dluhopisů postupně klesaly až do záporu. A zlato výrazně posílilo. Já bych k tomu dodal, že by zřejmě hodně rozhodovalo, jak by se chovala inflace – šla by „poptávkově“ do útlumu, nebo by stagflačně odolávalka. To by totiž ovlivňovalo sazby reálné. A ještě dvě obecnější věci:
Za prvé, s investicemi do zlata se musí opatrně, aby si člověk nezačal minimálně podvědomně přát, aby bylo hůř. Naše přání, byť podvědomá, mají totiž větší moc, než si běžně myslíme.
Za druhé, u zlata asi vždy kolovalo hodně příběhů a teorií o tom, co táhne jeho cena nahoru, nebo dolů. Význam faktorů se ale mění stejně jako reakční vzorce. Takže třeba nyní jsme u tohoto aktiva často deklarovaného jako pojištění proti inflaci v situaci, kdy je právě vyšší inflace považována ne dobrou, ale špatnou zprávu.
The market expects ConocoPhillips (COP - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis energy company is expected to post quarterly earnings of $2.97 per share in its upcoming report, which represents a year-over-year change of +84.5%.
Revenues are expected to be $18.24 billion, up 17.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 25.27% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ConocoPhillips?For ConocoPhillips, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.50%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that ConocoPhillips will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ConocoPhillips would post earnings of $2.96 per share when it actually produced earnings of $3.24, delivering a surprise of +9.46%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ConocoPhillips appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Oil and Gas - Integrated - United States industry, National Fuel Gas (NFG - Free Report) , is soon expected to post earnings of $1.15 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -5.7%. This quarter's revenue is expected to be $536.09 million, up 17.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for National Fuel Gas has been revised 0.5% down to the current level. Nevertheless, the company now has an Earnings ESP of -1.74%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that National Fuel Gas will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche, UCB y otras compañías mostrarán nuevos enfoques para la interacción conectada con el cliente, procesos MLR basados en agentes e impacto médico
, /PRNewswire/ -- Veeva Systems (NYSE: VEEV) anunció hoy que directivos de AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche y UCB figuran entre los ponentes que compartirán estrategias para impulsar la excelencia comercial y médica en la Veeva Commercial Summit, Europa, que tendrá lugar en Copenhague (Dinamarca) los días 18 y 19 de noviembre.
Los asistentes descubrirán cómo la IA, adaptada a las necesidades específicas del sector, permite a los equipos de ventas, marketing y medicina mejorar la interacción con los clientes, obtener información valiosa y acelerar la entrega de contenidos cumpliendo con la normativa vigente. Veeva mostrará cómo las interacciones tanto presenciales como digitales pueden transformarse en evidencia comercial, ayudando a las empresas biofarmacéuticas a comprender mejor las necesidades de los profesionales sanitarios y de los pacientes, así como a mejorar los resultados de los tratamientos.
Como uno de los mayores encuentros de líderes del sector de las ciencias de la vida en Europa, la Veeva Commercial Summit reúne a más de 1.200 expertos de la industria. El evento contará con más de 100 sesiones centradas en casos de éxito de clientes e innovaciones en IA mediante Commercial Cloud y Data Cloud, incluyendo:
Desbloqueo de nuevas capacidades con un modelo comercial basado en agentes
Grünenthal y Roche amplían la interacción con los clientes con agentes para ofrecer experiencias integradas a los profesionales sanitarios en los ámbitos presenciales, digitales y de eventos GSK y otras empresas biofarmacéuticas líderes ofrecen a los profesionales sanitarios una experiencia más inteligente y personalizada gracias a una gestión de relaciones con los clientes (CRM) de agentesBeOne Medicines aprovecha los conocimientos obtenidos gracias a la IA conversacional en las páginas web de las marcas para identificar y abordar los obstáculos que impiden el tratamiento, tanto para los profesionales sanitarios como para los pacientes Bristol Myers Squibb acelera la aprobación de contenidos promocionales y aumenta la productividad con MLR de agentesCreación de la base de datos para la IA
AstraZeneca aprovecha los datos sobre el acceso a los profesionales sanitarios para mejorar la orientación sobre el terreno y potenciar el crecimiento de las ventasBayer y Servier crean una base de datos global fiable para ampliar el uso de la inteligencia artificial y facilitar una mejor toma de decisiones en todos los mercadosLograr un mayor impacto médico para mejorar los resultados de los pacientes
Biogen, UCB, y otra empresa biofarmacéutica líder que transforma los conocimientos médicos en medidas concretas para mejorar la toma de decisiones y los resultados de los pacientesBayer, Novo, y One MSL analizan cómo el creciente uso de la inteligencia artificial por parte de los profesionales sanitarios está transformando las estrategias de participación científica"El ritmo de la innovación en el sector de las ciencias de la vida se está acelerando, y la inteligencia artificial está creando nuevas oportunidades para una interacción más significativa y oportuna con los profesionales sanitarios y los pacientes", afirmó Chris Moore, presidente de Veeva Europa. "Veeva Summit reúne a una comunidad de líderes para compartir conocimientos e ideas a medida que el sector avanza hacia un modelo comercial de agentes".
El evento está abierto exclusivamente a profesionales del sector de las ciencias de la vida, que pueden inscribirse en veeva.com/eu/Summit.
Acerca de Veeva Systems
Veeva ofrece la nube industrial para ciencias de la vida con aplicaciones, agentes, datos y consultoría. Comprometida con la innovación, la excelencia de sus productos y el éxito de sus clientes, Veeva presta servicios a más de 1.500 clientes, abarcando desde las mayores compañías farmacéuticas del mundo hasta empresas biotecnológicas emergentes. Como corporación de beneficio público, Veeva se compromete a equilibrar los intereses de todas las partes interesadas, incluidos clientes, empleados, accionistas y las industrias a las que sirve. Para obtener más información, visite veeva.com/eu.
Declaraciones prospectivas de Veeva
Este comunicado contiene declaraciones prospectivas sobre los productos y servicios de Veeva y los beneficios esperados del uso de nuestros productos y servicios. Estas declaraciones se basan en nuestras expectativas actuales. Los resultados reales podrían diferir sustancialmente de los proporcionados en este comunicado y no tenemos obligación de actualizar dichas declaraciones. Existen numerosos riesgos que pueden afectar negativamente nuestros resultados, entre los que se incluyen los riesgos e incertidumbres divulgados en nuestro informe presentado en el Formulario 10-Q para el año fiscal finalizado el 31 de julio de 2026, que puede encontrar aquí (un resumen de los riesgos que pueden afectar nuestro negocio se encuentra en las páginas 33 y 34), y en nuestros informes posteriores presentados ante la SEC, a los que puede acceder a través de sec.gov.
Contacto:
Meera Lakhani-Patel
Veeva Systems
[email protected]
AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche, UCB und weitere Unternehmen stellen neue Ansätze für vernetzte Kundenbindung, agentenbasiertes MLR und medizinische Wirkung vor
, /PRNewswire/ -- Veeva Systems (NYSE: VEEV) gab heute bekannt, dass Führungskräfte von AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche und UCB zu den Referenten gehören, die auf dem Veeva Commercial Summit Europe vom 18. bis 19. November in Kopenhagen, Dänemark, Strategien zur Förderung kommerzieller und medizinischer Exzellenz vorstellen werden.
Die Teilnehmer erfahren, wie branchenspezifische KI es Vertriebs-, Marketing- und medizinischen Teams ermöglicht, die Kundenbindung zu verbessern, wertvolle Erkenntnisse zu gewinnen und die Bereitstellung konformer Inhalte zu beschleunigen. Veeva wird veranschaulichen, wie Interaktionen vor Ort und im digitalen Bereich zu „Commercial Evidence" werden können, wodurch Biopharmaunternehmen die Bedürfnisse von medizinischen Fachkräften und Patienten besser verstehen und die Behandlungsergebnisse verbessern können.
Als eine der größten Zusammenkünfte von Führungskräften aus dem Life-Sciences-Bereich in Europa bringt der Veeva Commercial Summit mehr als 1.200 Branchenexperten zusammen. In über 100 Vorträgen werden Kundenerfolge und KI-Innovationen mit Commercial Cloud und Data Cloud beleuchtet, darunter:
Erschließung neuer Möglichkeiten mit Agentic Commercial
Grünenthal und Roche skalieren die agentische Kundenbindung, um vernetzte HCP-Erlebnisse über Außendienst, digitale Kanäle und Veranstaltungen hinweg zu ermöglichenGSK und andere führende Biopharmaunternehmen ermöglichen mit „Agentic CRM" eine intelligentere, personalisierte Erfahrung für medizinische FachkräfteBeOne Medicines nutzt Erkenntnisse aus dialogorientierter KI auf Markenwebsites, um Behandlungshindernisse für medizinische Fachkräfte und Patienten zu identifizieren und zu beseitigenBristol Myers Squibb beschleunigt die Genehmigung von Werbeinhalten und steigert die Produktivität durch agentenbasierte MLR.Aufbau der Datengrundlage für KI
AstraZeneca nutzt Zugangsdaten zu medizinischen Fachkräften, um die Zielgruppenansprache im Außendienst für mehr Umsatzwachstum zu verbessernBayer und Server bauen eine vertrauenswürdige globale Datenbasis auf, um KI zu skalieren und eine bessere Entscheidungsfindung marktübergreifend zu ermöglichenGrößere medizinische Wirkung erzielen, um die Behandlungsergebnisse für Patienten zu verbessern
Biogen, UCB, und ein weiteres führendes Biopharmaunternehmen setzen medizinische Erkenntnisse in Maßnahmen um, um die Entscheidungsfindung und die Behandlungsergebnisse für Patienten zu verbessernBayer, Novo und One MSL untersuchen, wie der zunehmende Einsatz von KI durch medizinische Fachkräfte die Strategien für die wissenschaftliche Zusammenarbeit neu gestaltet„Das Innovationstempo in den Life Sciences beschleunigt sich, wobei KI neue Möglichkeiten für eine sinnvollere und zeitnahe Interaktion mit medizinischen Fachkräften und Patienten schafft", sagte Chris Moore, Präsident von Veeva Europe. „Der Veeva Summit bringt eine Gemeinschaft von Führungskräften zusammen, um Erkenntnisse und Ideen auszutauschen, während sich die Branche in Richtung eines ‚Agentic Commercial'-Modells entwickelt."
Die Veranstaltung steht ausschließlich Fachleuten aus dem Life-Sciences-Bereich offen, die sich unter veeva.com/eu/Summit anmelden können.
Informationen zu Veeva Systems
Veeva bietet die Branchen-Cloud für die Biowissenschaften mit Anwendungen, Agenten, Daten und Beratung. Veeva hat sich der Innovation, der Produktqualität sowie dem Kundenerfolg verschrieben und betreut mehr als 1500 Kunden, von den weltweit größten Pharmaunternehmen bis hin zu aufstrebenden Biotech-Unternehmen. Als Public Benefit Corporation ist Veeva bestrebt, die Interessen aller Interessengruppen in Einklang zu bringen, darunter Kunden, Beschäftigte, Aktionäre sowie die Branchen, für die das Unternehmen tätig ist. Weitere Informationen finden Sie auf veeva.com/eu.
Zukunftsgerichtete Aussagen von Veeva
Diese Pressemitteilung enthält zukunftsgerichtete Aussagen zu den Produkten und Dienstleistungen von Veeva sowie zu den erwarteten Ergebnissen oder Vorteilen aus der Nutzung unserer Produkte und Dienstleistungen. Diese Aussagen beruhen auf unseren derzeitigen Erwartungen. Die tatsächlichen Ergebnisse können erheblich von den Angaben in dieser Pressemitteilung abweichen, und wir sind nicht verpflichtet, solche Aussagen zu aktualisieren. Es bestehen zahlreiche Risiken, die sich potenziell negativ auf unsere Ergebnisse auswirken können, darunter die Risiken und Ungewissheiten aus unserer Einreichung auf Formular 10-Q für das am 31. Juli 2026 beendete Geschäftsjahr, die Sie hier finden (eine Zusammenfassung der Risiken, die sich auf unser Geschäft auswirken können, finden Sie auf den Seiten 33 und 34), sowie aus unseren nachfolgenden SEC-Einreichungen, die Sie auf sec.gov abrufen können.
Kontakt:
Meera Lakhani-Patel
Veeva Systems
[email protected]
AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche, UCB et d'autres entreprises présenteront de nouvelles approches en matière d'engagement client connecté, de MLR automatisé et d'impact médical
, /PRNewswire/ -- Veeva Systems (NYSE : VEEV) a annoncé aujourd'hui que des dirigeants d'AstraZeneca, Bristol Myers Squibb, Grünenthal, Novo, Roche et UCB font partie de ceux qui partageront des stratégies pour stimuler l'excellence commerciale et médicale lors du Veeva Commercial Summit, Europe, les 18 et 19 novembre à Copenhague, au Danemark.
Les participants découvriront comment l'IA adaptée à chaque secteur d'activité permet aux équipes de vente, de marketing et médicales d'améliorer l'engagement client, de révéler des informations précieuses et d'accélérer la diffusion de contenu conforme. Veeva démontrera comment les interactions numériques et sur le terrain peuvent devenir des preuves commerciales, aidant ainsi les entreprises biopharmaceutiques à mieux comprendre les besoins des professionnels de santé et des patients et à améliorer les résultats des traitements.
Le sommet commercial de Veeva, l'un des plus grands rassemblements européens de leaders des sciences de la vie, réunit plus de 1 200 experts du secteur. Plus de 100 sessions mettront en lumière la réussite des clients et les innovations en IA avec Commercial Cloud et Data Cloud, notamment :
Débloquer de nouvelles fonctionnalités avec Agentic Commercial
Grünenthal et Roche développent l'engagement client automatisé pour proposer des parcours clients connectés sur le terrain, en ligne et lors d'événements.GSK et d'autres entreprises biopharmaceutiques de premier plan permettent une expérience plus intelligente et personnalisée pour les professionnels de santé grâce à un CRM actif.BeOne Medicines utilise les données issues de l'IA conversationnelle sur les sites de la marque pour identifier et lever les obstacles au traitement pour les professionnels de santé et les patients.Bristol Myers Squibb accélère l'approbation des contenus promotionnels et accroît la productivité grâce à la technologie MLR automatisée.Construire une base de données pour l'IA
AstraZeneca utilise les données d'accès aux professionnels de santé pour améliorer le ciblage sur le terrain et stimuler la croissance des ventes.Bayer et Servier mettent en place une base de données mondiale fiable pour déployer l'IA à grande échelle et permettre une meilleure prise de décision sur tous les marchés.Un impact médical accru pour améliorer les résultats des patients
Biogen, UCB et une autre entreprise biopharmaceutique de premier plan transforment les connaissances médicales en actions pour améliorer la prise de décision et les résultats pour les patients.Bayer, Novo et One MSL étudient comment l'utilisation croissante de l'IA par les professionnels de santé redéfinit les stratégies d'engagement scientifique.« Le rythme de l'innovation dans les sciences de la vie s'accélère, l'IA créant de nouvelles opportunités pour une interaction plus pertinente et plus opportune avec les professionnels de santé et les patients », a déclaré Chris Moore, président de Veeva Europe. « Le Veeva Summit réunit une communauté de leaders pour partager leurs connaissances et leurs idées, tandis que le secteur évolue vers un modèle commercial agentique. »
L'événement est ouvert exclusivement aux professionnels des sciences de la vie, qui peuvent s'inscrire sur veeva.com/eu/Summit.
À propos de Veeva Systems
Veeva propose une plateforme cloud dédiée au secteur des sciences de la vie, comprenant des applications, des agents, des données et des services de conseil. Engagé en faveur de l'innovation, de l'excellence de ses produits et de la réussite de ses clients, Veeva compte plus de 1 500 clients, parmi lesquels figurent les plus grandes sociétés biopharmaceutiques mondiales et des biotechs émergentes. Véritable société d'utilité publique, Veeva s'engage à concilier au mieux les intérêts de toutes les parties prenantes, y compris les clients, les employés, les actionnaires et les secteurs qu'elle dessert. Pour en savoir plus, rendez-vous sur veeva.com/eu.
Déclarations prospectives de Veeva
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Key Points:EUR/USD moved higher as traders focused on ECB Interest Rate Decision.USD/CAD pulled back despite the sell-off in precious metals markets. USD/JPY was mostly flat ahead of BoJ Interest Rate Decision.
DXY 291026 4h Chart U.S. Dollar Index is losing ground as traders stay focused on yesterday’s Fed decision and react to GDP Growth Rate report.
The report indicated that GDP Growth Rate was 3.4% in the third quarter, compared to analyst forecast of 3.2%.
Traders also had a chance to take a look at the PCE Price Index report, which is Fed’s preferred inflation gauge. PCE Price Index increased from 3.4% in August to 3.6% in September, in line with analyst estimates.
EUR/USD Rebounds As ECB Leaves Rates Unchanged
EUR/USD 291026 4h Chart EUR/USD gained ground as traders focused on ECB Interest Rate Decision. The European Central Bank left the interest rate unchanged at 2.65%, in line with analyst estimates.
ECB President Christine Lagarde would leave the ECB on February 7, nine months before her term was scheduled to end. Most likely, the EU is trying to hedge against a potential win of Marine Le Pen in French presidential elections in 2027. Her successor will be chosen later.
GBP/USD Climbed Above The 1.3350 Level
GBP/USD 291026 4h Chart GBP/USD rallied as traders reacted to U.S. economic reports and focused on ECB decision.
From the technical point of view, GBP/USD climbed above the 50 MA at 1.3352 and moved towards the resistance level at 1.3385 – 1.3400. This resistance level has been tested many times and proved its strength. In case GBP/USD manages to settle above the 1.3400 level, it will head towards the next resistance, which is located in the 1.3485 – 1.3500 range.
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USD/CAD Tests Support At 1.3985 – 1.4000
USD/CAD 291026 4h Chart USD/CAD is losing ground despite the strong pullback in precious metals markets. Gold is down by -1.2%, while silver pulled back by -3%. Other commodity-related currencies are mixed in today’s trading session.
Currently, USD/CAD is trying to settle below the support level at 1.3985 – 1.4000. In case this attempt is successful, USD/CAD will head towards the next support at 1.3900 – 1.3915.
On the upside, USD/CAD needs to climb back above 1.4000 to have a chance to gain upside momentum in the near term. In this case, USD/CAD will head towards the 50 MA at 1.4032. A move above the 50 MA will open the way to the test of the resistance level at 1.4070 – 1.4085.
USD/JPY Stays Range-Bound As Traders Wait For BoJ Decision
USD/JPY 291026 4h Chart USD/JPY remains stuck near key resistance at 158.00 – 158.50 as traders focus on the weaker-than-expected Consumer Confidence report from Japan. The report showed that Consumer Confidence declined from 35.4 in September to 35.0 in October, compared to analyst forecast of 35.1.
The Japanese yen did not show strong reaction to Fed decision. Traders are waiting for BoJ interest Rate Decision, which will be released tomorrow. Analysts expect that BoJ will leave the rate unchanged at 1.25%.
If USD/JPY manages to settle above the 158.50 level, it will head towards the resistance at 160.00 – 160.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term. I’d note that traders should be prepared for fast moves when BoJ releases its Interest Rate Decision.
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About the Author
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
